Fifth District Bancorp, Inc. reported a net loss of $1.1 million for the fiscal year ending December 31, 2024, a significant decline from a net income of $797,000 in the previous year. This loss was primarily attributed to a $2.3 million increase in non-interest expenses, which included a $1.3 million charitable contribution to the Fifth District Community Foundation, and a $2.9 million rise in interest expenses. Total interest and dividend income increased by 17.4% to $19.3 million, driven by higher yields on loans and investment securities, while total interest expense rose 44.9% to $9.2 million.
The company's total assets grew by 9.7% to $527.3 million, up from $480.8 million in 2023. This increase was largely due to a $18.6 million rise in cash and cash equivalents and a $25.1 million increase in investment securities. Loans receivable, net, saw a modest increase of 0.6% to $367.3 million, with a notable rise in commercial and industrial loans. However, the overall loan portfolio was impacted by a decrease in one-to-four family mortgages and home equity loans.
Fifth District Bancorp's strategic focus remains on originating fixed-rate one-to-four family residential mortgage loans, which constituted 90.3% of its total loan portfolio as of December 31, 2024. The company is also looking to moderately increase its commercial and industrial loan portfolio, which accounted for 3.9% of total loans. The bank's efforts to grow low-cost core deposits are ongoing, with core deposits totaling $152.7 million, representing 39% of total deposits.
Operationally, Fifth District Bancorp maintained a stable employee base, with 67 full-time employees and one part-time employee as of December 31, 2024. The company is committed to enhancing its community-oriented services and is exploring opportunities for organic growth and potential acquisitions to expand its market presence. The bank's capital ratios indicate a well-capitalized status, with total capital to risk-weighted assets at 43.89% as of December 31, 2024, significantly above the regulatory minimums.
Looking ahead, Fifth District Bancorp aims to navigate the challenges posed by rising interest rates and economic conditions while focusing on maintaining asset quality and enhancing customer service. The company is optimistic about its growth prospects, supported by its recent capital raise through an initial public offering, which is expected to bolster its lending and investment capacity.
About Fifth District Bancorp, Inc.
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