Fifth District Bancorp (FDSB) investor relations material

Executive summary

• Net income for Q2 2026 was $384,000, down 87.7% year-over-year, primarily due to a one-time gain on insurance proceeds in 2025 and lower noninterest income in 2026.

• For the six months ended June 30, 2026, net income was $771,000, a 75.9% decrease from the prior year, reflecting the absence of the prior year’s insurance gain and higher tax expense.

• Total assets decreased 0.4% to $532.1 million from December 31, 2025, driven by lower cash and investment securities, partially offset by higher loans receivable.

Financial highlights

• Net interest income rose 18.0% year-over-year to $3.7 million for Q2 2026, with net interest margin improving to 2.98% from 2.54%.

• Noninterest income dropped 93.6% to $239,000 for Q2 2026 due to the absence of a $3.5 million insurance gain recorded in 2025.

• Noninterest expense decreased 9.5% to $3.5 million, mainly from lower salaries and benefits.

• Provision for credit losses was zero for both Q2 2026 and Q2 2025; allowance for credit losses on loans was 0.43% of total loans at June 30, 2026.

• Total stockholders’ equity declined 0.6% to $129.0 million, reflecting increased accumulated other comprehensive loss and share repurchases.

Outlook and guidance

• Management expects to maintain strong liquidity and capital positions, with sufficient funds to meet current commitments and a significant portion of maturing time deposits anticipated to be retained.

• The bank remains well-capitalized under regulatory guidelines and does not anticipate changes to its capital category.