Fifth District Bancorp, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. Total assets increased by $43.0 million, or 9.0%, reaching $523.8 million, compared to $480.8 million at the end of 2023. This growth was primarily driven by a substantial rise in cash and cash equivalents, which surged by $14.8 million, or 76.6%, to $34.1 million, largely due to proceeds from the company's initial public offering. Investment securities available-for-sale also saw a notable increase, rising by $25.9 million, or 38.1%, to $93.8 million.
Despite these asset gains, the company reported a net loss of $788,000 for Q3 2024, a significant decline from a net income of $39,000 in Q3 2023. For the nine months ended September 30, 2024, the net loss totaled $1.2 million, compared to a profit of $619,000 in the same period the previous year. The primary factors contributing to this loss included a $1.6 million increase in non-interest expenses, which included a $1.3 million charitable contribution to establish the Fifth District Community Foundation, and a $508,000 rise in interest expenses. However, interest income increased by $1.0 million, or 25.0%, to $5.2 million, driven by higher yields on loans and investment securities.
Total liabilities decreased to $395.9 million as of September 30, 2024, from $403.0 million at the end of 2023, while total stockholders' equity rose significantly by $50.1 million, or 64.4%, to $127.9 million, primarily due to the stock sale in the IPO.
The company’s net interest income for Q3 2024 was $2.9 million, up from $2.4 million in Q3 2023, reflecting a net interest margin increase to 2.32% from 2.11%. However, net interest income for the nine months ended September 30, 2024, decreased by $602,000, or 7.7%, to $7.2 million compared to the same period in 2023.
Fifth District Bancorp's loan portfolio remained stable, with total loans receivable increasing slightly to $368.6 million from $367.1 million at the end of 2023. The allowance for credit losses decreased to $1.7 million, reflecting management's assessment of the evolving economic outlook and local real estate market conditions.
The company also noted material weaknesses in its internal controls over financial reporting, particularly concerning the allowance for credit losses, and plans to enhance its processes moving forward.
About Fifth District Bancorp, Inc.
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