In This Story
Fifth District Bancorp, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in total assets to $523.8 million from $480.8 million at the end of the previous year. This increase is primarily due to a rise in cash and cash equivalents and investment securities.
Cash and cash equivalents increased by $14.8 million, largely due to the proceeds from the company's initial public offering. Investment securities available-for-sale increased by $25.9 million.
Loans receivable, net, increased slightly by $2.7 million. The company reported a reversal of $1.1 million from its allowance for credit losses.
Deposits decreased by $5.9 million, with a notable migration from lower-yielding accounts to higher-yielding certificates of deposit.
Total stockholders' equity increased by $50.1 million, mainly due to the proceeds from the stock offering, offset by an unearned ESOP and accumulated other comprehensive loss.
Interest and dividend income rose by $1.0 million compared to the same quarter the previous year, driven by an increase in interest on loans and investment securities.
Interest expense increased by $508,000 due to a rise in the average cost of deposits, reflecting the rising market interest rate environment.
Net interest income increased by $530,000, while the net interest margin improved to 2.32%.
Noninterest expense increased significantly due to a $1.3 million charitable contribution and higher salaries and employee benefits.
The company reported a net loss of $788,000 for the quarter, a decrease from a net income of $39,000 in the same quarter the previous year.
Fifth District Bancorp identified material weaknesses in its internal control over financial reporting, specifically regarding the allowance for credit losses.
The company plans to address these weaknesses by improving processes and control procedures, including revising peer group selections and enhancing qualitative factors.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Fifth District Bancorp Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.