Financial Position - Total assets increased by $28.8 million, or 5.0%, to $609.6 million as of September 30, 2025, compared to $580.8 million at December 31, 2024[161]. - Total liabilities increased to $537,297 as of September 30, 2025, compared to $513,976 at the end of 2024[210]. - Total stockholders' equity increased by $1.1 million, or 1.8%, to $63.2 million at September 30, 2025[174]. Cash and Deposits - Cash and due from banks rose by $12.5 million, or 175.7%, to $19.6 million at September 30, 2025, driven by a $27.3 million increase in total deposits[162]. - Total deposits increased by $25.8 million, or 5.7%, to $480.0 million as of September 30, 2025, from $454.2 million at December 31, 2024[172]. - Core deposits rose by $4.6 million, or 1.5%, to $323.1 million at September 30, 2025, compared to $318.5 million at December 31, 2024[172]. Loan Portfolio - Net loans decreased by $5.5 million, or 1.3%, to $430.0 million at September 30, 2025, with $9.2 million collected in loan principal during the nine months ended September 30, 2025[165]. - One- to four-family residential mortgage loans decreased by $4.1 million, or 1.5%, to $271.1 million at September 30, 2025[166]. - Commercial and industrial loans increased by $971,000, or 4.1%, to $24.7 million at September 30, 2025[166]. - The portfolio of purchased loans had an outstanding principal balance of $37.0 million as of September 30, 2025, performing in accordance with original repayment terms[165]. Income and Expenses - Net income for the three months ended September 30, 2025, was $390,000, an increase of $346,000 from $44,000 for the same period in 2024[178]. - Total interest and dividend income increased by $344,000, or 5.3%, to $6.9 million for the three months ended September 30, 2025[179]. - Net interest and dividend income rose by $465,000, or 15.6%, to $3.4 million for the three months ended September 30, 2025[183]. - Non-interest income increased by $180,000, or 49.5%, to $544,000 for the three months ended September 30, 2025[185]. - Non-interest expense increased by $969,000, or 8.3%, to $12.7 million for the nine months ended September 30, 2025, from $11.8 million for the same period in 2024[203]. Interest Rates and Risk Management - The weighted average annualized yield on interest-earning assets increased to 4.59% for the nine months ended September 30, 2025, from 4.45% for the same period in 2024[197]. - The net interest rate spread improved to 1.70% for the nine months ended September 30, 2025, up from 1.43% in 2024[206]. - In a rising interest rate environment, the company anticipates that deposit and borrowing rates will reprice upwards faster than long-term loan rates, compressing the interest rate spread[224]. - A substantial and unexpected change in market interest rates could materially adversely affect the company's financial condition and results of operations[225]. - The company monitors its exposure to interest rate movements regularly and implements strategies to mitigate negative impacts[222]. Credit Losses and Provisions - The allowance for credit losses (ACL) on loans was $3.5 million at both September 30, 2025, and December 31, 2024, based on ASU 2016-13[168]. - Provision for credit losses recorded was $50,000 for the nine months ended September 30, 2025, compared to a $(20,000) release of credit losses for the same period in 2024[201]. - Non-performing loans were $194,000 as of September 30, 2025, compared to $0 at December 31, 2024[177]. Economic Value and Liquidity - The bank's liquidity position is monitored daily, with no material commitments for capital expenditures as of September 30, 2025[214]. - The bank exceeded all regulatory capital requirements as of September 30, 2025, and is categorized as well-capitalized[216]. - The economic value of equity is expected to decrease by 20.9% with a 200 basis point increase in interest rates, which is above the policy limit of 20%[224].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File No. 001-41597 First Seacoast Bancorp, Inc. (Exact Name of Registrant as Specified in Its Charter) Maryland 92-0334805 ( ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for First Seacoast Bancorp, Inc. as of March 31, 2025, and for the three months ended March 31, 2025 and 2024, including balance sheets, statements of loss, comprehensive loss, changes in stockholders' equity, and cash flows, along with detailed notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$592.6 million** at March 31, 2025, from **$580.8 million** at December 31, 2024, primarily driven by a **$9.6 million** increase in net loans, while stockholders' equity slightly decreased Consolidated Balance Sheet Highlights (Unaudited) | (Dollars in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Net loans | $445,106 | $435,481 | | Securities available-for-sale | $123,497 | $120,217 | | **Total assets** | **$592,643** | **$580,780** | | **Liabilities & Equity** | | | | Total deposits | $454,134 | $454,208 | | Advances from FHLB | $63,388 | $52,268 | | **Total liabilities** | **$531,417** | **$518,730** | | **Total stockholders' equity** | **$61,226** | **$62,050** | [Consolidated Statements of Loss](index=4&type=section&id=Consolidated%20Statements%20of%20Loss) The company reported a net loss of **$603,000** for the three months ended March 31, 2025, a significant improvement from the **$1.15 million** net loss in the same period of 2024, driven by a **10%** increase in net interest income Consolidated Statements of Loss Highlights (Unaudited) | (Dollars in thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net interest and dividend income | $3,179 | $2,891 | | Provision (release) for credit losses | $— | $(20) | | Total non-interest income | $351 | $297 | | Total non-interest expense | $4,162 | $3,998 | | **Net loss** | **$(603)** | **$(1,152)** | | **Loss per share (Basic & Diluted)** | **$(0.14)** | **$(0.24)** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on significant accounting policies, including the adoption of ASU 2023-07 for segment reporting, and detail the composition of financial instruments, employee benefits, stock compensation, leases, regulatory capital, and fair value measurements - The company operates as a **single reportable segment**, "Banking Services," as all activities are interrelated and assessed as a single unit by the Chief Operating Decision Maker (CODM)[32](index=32&type=chunk)[33](index=33&type=chunk) - As of March 31, 2025, the company had **107 securities** in an unrealized loss position totaling **$10.3 million**, which management attributes to noncredit-related factors like interest rate changes, with no allowance for credit losses recorded[43](index=43&type=chunk) - The Allowance for Credit Losses (ACL) on loans was **$3.5 million** as of March 31, 2025, calculated using the Weighted Average Remaining Maturity (WARM) model with a forecast period of six quarters[52](index=52&type=chunk)[56](index=56&type=chunk) - The Bank is categorized as **"well capitalized"** under regulatory frameworks, exceeding all minimum capital requirements as of March 31, 2025[112](index=112&type=chunk) - Subsequent to the quarter end, on April 29, 2025, the company purchased **$10.0 million** of three-year brokered deposits at a rate of **4.35%** to support securities growth[147](index=147&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting a reduced net loss in Q1 2025 compared to Q1 2024, driven by higher net interest income, and covers changes in the balance sheet, operating results, liquidity sources, and capital adequacy [Comparison of Financial Condition (Mar 31, 2025 vs. Dec 31, 2024)](index=50&type=section&id=Comparison%20of%20Financial%20Condition) Total assets grew by **$11.9 million (2.0%)** to **$592.6 million**, driven by a **$9.6 million** increase in net loans and a **$3.3 million** rise in available-for-sale securities, funded by an **$11.1 million** increase in FHLB borrowings - Net loans increased by **$9.6 million (2.2%)** to **$445.1 million**, with growth across most loan categories, particularly commercial real estate and acquisition, development, and land loans[160](index=160&type=chunk)[161](index=161&type=chunk) - Available-for-sale securities increased by **$3.3 million (2.7%)** to **$123.5 million**, resulting from **$6.9 million** in purchases offset by **$3.6 million** in principal payments[158](index=158&type=chunk) - Total borrowings from the FHLB increased by **$11.1 million (21.3%)** to **$63.4 million** to support investment and loan growth[167](index=167&type=chunk) - The company had **no non-performing loans or foreclosed assets** at March 31, 2025[171](index=171&type=chunk) [Comparison of Operating Results (Q1 2025 vs. Q1 2024)](index=54&type=section&id=Comparison%20of%20Operating%20Results) The net loss for Q1 2025 was **$603,000**, a **47.7%** improvement from a **$1.2 million** loss in Q1 2024, primarily due to a **$288,000** increase in net interest income, as the yield on interest-earning assets rose faster than the cost of funds Key Operating Results Comparison | (Dollars in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $3,179 | $2,891 | | Provision (Release) for Credit Losses | $— | $(20) | | Non-Interest Income | $351 | $297 | | Non-Interest Expense | $4,162 | $3,998 | | **Net Loss** | **$(603)** | **$(1,152)** | - Net interest margin increased to **2.23%** from **2.07%** year-over-year, driven by a higher average yield on interest-earning assets[177](index=177&type=chunk)[185](index=185&type=chunk) - Interest expense on borrowings decreased by **$495,000 (43.1%)** due to a lower average balance of borrowings, as the company utilized brokered deposits for funding[176](index=176&type=chunk) - Non-interest expense rose by **$164,000 (4.1%)**, primarily due to a **$118,000** increase in salaries and benefits and a **$133,000** increase in occupancy expense related to a 2024 sale-leaseback transaction[180](index=180&type=chunk) [Liquidity and Capital Resources](index=59&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with primary funding from deposits, loan and security cash flows, and FHLB/FRB borrowings, and remains well-capitalized, exceeding all regulatory requirements - Uninsured deposits were estimated at **$111.4 million**, or **24.5%** of total deposits, as of March 31, 2025[189](index=189&type=chunk) Available Borrowing Capacity (as of March 31, 2025) | Source | Available Capacity | | :--- | :--- | | FHLB | $88.8 million | | FRB (BIC Program) | $38.5 million | | Correspondent Bank (Fed Funds) | $2.0 million | - First Seacoast Bank exceeded all regulatory capital requirements and is considered **well-capitalized** as of March 31, 2025[195](index=195&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed by the Asset/Liability Management Committee (ALCO), with the Net Portfolio Value (NPV) simulation showing a **20.9%** decrease in a **+200 basis point** rate shock scenario, slightly exceeding the policy limit - The company's main market risk is **interest rate risk**, arising from the mismatch in maturities between its longer-term assets (loans) and shorter-term liabilities (deposits)[196](index=196&type=chunk) Net Portfolio Value (NPV) Sensitivity Analysis (as of March 31, 2025) | Basis Point Change | NPV Dollar Change (in thousands) | NPV Percent Change | Policy Limit | | :--- | :--- | :--- | :--- | | +400 bp | $(32,208) | (43.5)% | (40.0)% | | +300 bp | $(23,506) | (31.8)% | (30.0)% | | +200 bp | $(15,462) | (20.9)% | (20.0)% | | +100 bp | $(6,944) | (9.4)% | N/A | | -100 bp | $4,811 | 6.5% | N/A | - The NPV sensitivity exceeded policy limits for rate increases of **+200, +300, and +400 basis points**, primarily due to deposit migration to more interest-sensitive accounts[201](index=201&type=chunk) [Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period[205](index=205&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter ended March 31, 2025[207](index=207&type=chunk) [PART II. OTHER INFORMATION](index=65&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) The company is periodically involved in various claims and lawsuits incidental to its business, but as of March 31, 2025, management believes there are no pending legal proceedings that would have a material adverse effect on its financial condition, results of operations, or cash flows - As of March 31, 2025, the company was **not a party to any material pending legal proceedings**[210](index=210&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) During the first quarter of 2025, the company repurchased **54,816 shares** of its common stock under its publicly announced stock repurchase program, which expires on December 3, 2025, with no sales of unregistered securities during the quarter Share Repurchases for Q1 2025 | Period | Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | Jan 2025 | 13,257 | $10.00 | | Feb 2025 | 30,838 | $10.65 | | Mar 2025 | 10,721 | $10.99 | | **Total** | **54,816** | **N/A** | - As of March 31, 2025, **278,538 shares** remained available for repurchase under the authorized program, which expires on December 3, 2025[211](index=211&type=chunk) [Other Information](index=65&type=section&id=Item%205.%20Other%20Information) For the three months ended March 31, 2025, no directors or executive officers of the company adopted or terminated any Rule 10b5-1 trading plans or any non-Rule 10b5-1 trading arrangements - No directors or executive officers adopted or terminated a Rule 10b5-1 trading plan during Q1 2025[215](index=215&type=chunk)

Financial Performance - Total assets increased to $580,780,000 in 2024 from $571,035,000 in 2023, representing a growth of 1.3%[221] - Total loans rose to $438,967,000 in 2024, up from $430,031,000 in 2023, indicating a 2.2% increase[221] - Total deposits grew significantly to $454,208,000 in 2024, compared to $404,798,000 in 2023, marking a 12.2% increase[221] - Interest and dividend income increased to $25,431,000 in 2024, up from $20,590,000 in 2023, reflecting a growth of 23.5%[221] - Net loss narrowed to $513,000 in 2024 from a loss of $10,656,000 in 2023, showing a significant improvement[221] - Non-interest income increased by $5.9 million, or 294.5%, to $3.9 million for the year ended December 31, 2024, primarily due to a one-time $2.5 million gain on the sale of land and buildings[270] - Non-interest expense decreased by $167,000, or 1.0%, to $15.9 million for the year ended December 31, 2024, mainly due to a decrease in salaries and employee benefits[271] - Net loss was $513,000 for the year ended December 31, 2024, a significant improvement compared to a net loss of $10.7 million for the year ended December 31, 2023[263] Asset Quality - The ratio of non-performing assets as a percent of total assets was 0.00% in 2024, maintaining strong asset quality[230] - The allowance for credit losses (ACL) on loans rose by $96,000 to $3.5 million at December 31, 2024, consisting of a $120,000 provision for loan losses[249] - The ACL as a percentage of total loans was 0.79% at December 31, 2024, reflecting the impact of calculated loss rates and current economic conditions[239] Operational Efficiency - The efficiency ratio improved to 100.37% in 2024 from 168.65% in 2023, indicating enhanced operational efficiency[223] Loan and Deposit Growth - The company plans to grow its loan portfolio, focusing on higher yielding commercial real estate and commercial and industrial loans[226] - One- to four-family residential mortgage loans increased by $6.3 million, or 2.3%, to $275.2 million at December 31, 2024[253] - Deposits increased by $49.4 million, or 12.2%, to $454.2 million at December 31, 2024, driven by a $20.7 million, or 31.9%, increase in savings deposits[256] Interest Rate Management - The company has implemented strategies to manage interest rate risk, including promoting core deposit products and diversifying the loan portfolio[280] - The average yield on loans improved to 4.53% in 2024 from 4.08% in 2023, an increase of 11.0%[275] - The net interest margin decreased to 2.09% in 2024 from 2.16% in 2023, indicating a decline of 3.2%[275] Balance Sheet Changes - Total liabilities increased to $517,434 thousand in 2024 from $480,765 thousand in 2023, marking an increase of 7.6%[275] - Total stockholders' equity decreased by $4.6 million, or 6.9%, to $62.1 million at December 31, 2024, attributed to common stock repurchases and unrealized losses in the securities portfolio[258] - Total borrowings decreased by $40.7 million, or 43.8%, to $52.3 million at December 31, 2024, primarily due to a decrease in FHLB and FRB advances[257] Liquidity and Cash Flow - Net cash used by operating activities was $2.9 million for the year ended December 31, 2024, compared to $1.9 million for 2023[293] - The Bank's liquidity position is monitored daily, with no material commitments for capital expenditures as of December 31, 2024[294] - At December 31, 2024, the Bank had liquid assets of $17.1 million on an unconsolidated basis[295] - The Bank's net cash provided by financing activities was $6.5 million for the year ended December 31, 2024, compared to $39.2 million for 2023[293] Market Position and Strategy - The company aims to expand organically and through opportunistic acquisitions or new branch openings in its market area[230] - The company executed a balance sheet repositioning strategy, selling $23.5 million in lower-yielding securities and purchasing $16.6 million in higher-yielding securities[251]

Financial Performance - Net income for the three months ended September 30, 2024, was $44,000, a significant increase of $955,000, or 104.8%, compared to a net loss of $911,000 for the same period in 2023[111]. - Net income for the nine months ended September 30, 2024, was $895,000, an increase of $1.9 million compared to a net loss of $987,000 for the same period in 2023[119]. - Total interest and dividend income rose by $1.4 million, or 26.9%, to $6.6 million for the three months ended September 30, 2024, compared to $5.2 million for the same period in 2023[111]. - Total interest and dividend income increased by $4.1 million, or 27.8%, to $18.9 million for the nine months ended September 30, 2024, compared to $14.8 million for the same period in 2023[119]. - Non-interest income surged by $1.7 million, or 95.2%, to $3.6 million for the nine months ended September 30, 2024, primarily due to a one-time $2.5 million gain on the sale of land and buildings[120]. Asset and Liability Management - Total assets increased by $30.7 million, or 5.4%, to $601.8 million as of September 30, 2024, compared to $571.0 million at December 31, 2023[106]. - Total deposits increased by $42.9 million, or 10.6%, to $447.7 million at September 30, 2024, driven by a $14.9 million increase in commercial deposits and a $28.0 million increase in retail deposits[110]. - The average balance of interest-bearing deposits increased by $42.2 million, or 13.5%, to $354.2 million for the nine months ended September 30, 2024[119]. - The Bank had $52.3 million and $73.0 million outstanding in advances from the FHLB as of September 30, 2024, and December 31, 2023, respectively[126]. - As of September 30, 2024, the aggregate amount of uninsured total deposit balances was estimated at $110.3 million, representing 24.7% of total deposits[126]. Loan Portfolio - Net loans increased by $7.9 million, or 1.9%, to $434.5 million at September 30, 2024, with one- to four-family residential mortgage loans rising by $10.9 million, or 4.0%[106]. - Home equity loans and lines of credit increased by $2.6 million, or 18.3%, to $16.7 million at September 30, 2024[106]. - Consumer loans rose by $2.5 million, or 25.0%, to $12.3 million at September 30, 2024[106]. - Commercial real estate mortgage loans decreased by $870,000, or 1.0%, to $85.7 million at September 30, 2024[106]. - The company originated $5.9 million of loans, net of principal collections, during the nine months ended September 30, 2024[106]. Interest Income and Expense - Total interest expense increased by $972,000, or 37.4%, to $3.6 million for the three months ended September 30, 2024, primarily due to a $1.0 million increase in interest expense on deposits[111]. - Total interest expense increased by $4.0 million, or 65.4%, to $10.0 million for the nine months ended September 30, 2024, compared to $6.0 million in 2023[119]. - Interest expense on deposits rose by $3.5 million, or 100.7%, to $6.9 million for the nine months ended September 30, 2024, from $3.4 million in 2023[119]. - Net interest income for the three months ended September 30, 2024, was $2,982,000, compared to $2,567,000 for the same period in 2023[116]. - Net interest and dividend income increased by $152,000, or 1.7%, to $8.9 million for the nine months ended September 30, 2024[120]. Regulatory and Risk Management - The Bank exceeded all its regulatory capital requirements as of September 30, 2024[127]. - The interest rate risk position is monitored quarterly by the board of directors, with strategies implemented to manage exposure to interest rate changes[128]. - The economic value of equity is estimated to decrease by 22.3% in the event of a 200 basis point increase in interest rates, exceeding the Board approved limit of 20.0%[133]. - The percent changes to net portfolio value (NPV) in response to a 400 basis point increase in interest rates was -47.2% as of September 30, 2024[131]. Taxation - Income tax benefit increased by $213,000, or 49.9%, to $640,000 for the three months ended September 30, 2024, with an effective tax rate of (107.4)%[113]. - Income tax benefit decreased by $491,000, or 73.6%, to a benefit of $176,000 for the nine months ended September 30, 2024[120]. - The effective tax rate was (24.4)% for the nine months ended September 30, 2024, compared to (40.3)% for the same period in 2023[120]. Non-Interest Expense - Non-interest expense decreased by $173,000, or 4.2%, to $3.9 million for the three months ended September 30, 2024, mainly due to a $169,000 decrease in salaries and employee benefits[113]. - Non-interest expense decreased by $298,000, or 2.5%, to $11.8 million for the nine months ended September 30, 2024[120].

Financial Performance - Net income for the three months ended June 30, 2024, was $2.0 million, a significant increase of $2.5 million, or 470.9%, compared to a net loss of $540,000 for the same period in 2023[109] - Net income for the six months ended June 30, 2024, was $851,000, an increase of $927,000 compared to a net loss of $76,000 for the same period in 2023[116] - Non-interest income surged by $2.5 million, or 736.1%, to $2.9 million for the three months ended June 30, 2024, largely due to a one-time gain on the sale of land and buildings[110] - Non-interest income increased by $1.7 million, or 111.7%, to $3.2 million for the six months ended June 30, 2024, compared to $1.5 million for the same period in 2023[117] Asset and Liability Management - Total assets increased by $30.7 million, or 5.4%, to $601.7 million as of June 30, 2024, compared to $571.0 million at December 31, 2023[105] - Total liabilities increased to $510.6 million for the six months ended June 30, 2024, from $470.4 million for the same period in 2023[119] - Total stockholders' equity decreased by $2.1 million, or 3.2%, to $64.5 million at June 30, 2024, primarily due to unrealized losses in the available-for-sale securities portfolio[108] - Total stockholders' equity decreased to $64.9 million for the six months ended June 30, 2024, from $71.4 million for the same period in 2023[119] Income and Expense Analysis - Total interest and dividend income rose by $1.3 million, or 25.7%, to $6.3 million for the three months ended June 30, 2024, driven by increases in both investment income and loan interest[109] - Total interest and dividend income increased by $2.7 million, or 28.2%, to $12.3 million for the six months ended June 30, 2024, compared to $9.6 million for the same period in 2023[116] - Total interest expense increased by $1.2 million, or 61.8%, to $3.3 million for the three months ended June 30, 2024, primarily due to higher interest on deposits[109] - Total interest expense increased by $3.0 million, or 86.4%, to $6.4 million for the six months ended June 30, 2024, compared to $3.5 million in 2023[116] Loan and Deposit Growth - Total deposits increased by $46.9 million, or 11.6%, to $451.7 million as of June 30, 2024, compared to $404.8 million at December 31, 2023[108] - Net loans increased by $5.5 million, or 1.3%, to $432.1 million at June 30, 2024, with one- to four-family residential mortgage loans rising by $5.7 million, or 2.1%[106] - Multi-family loans surged by $2.7 million, or 35.3%, to $10.3 million at June 30, 2024, indicating a strategic focus on higher-yielding loan types[106] - Home equity loans and lines of credit increased by $2.4 million, or 16.7%, to $16.5 million at June 30, 2024, reflecting growth in consumer lending[106] Interest Rate Risk and Management - The percent change to NPV in the +400 basis points change in interest rates was -40.6% as of June 30, 2024, exceeding the policy limit of -40.0%[126] - In the event of a 200 basis point increase in interest rates, the Company would experience a 19.7% decrease in economic value of equity, close to the Board approved limit of 20.0%[129] - The interest rate risk position is monitored quarterly by the board of directors, with strategies implemented to manage exposure to interest rate changes[124] Cash Flow and Financing Activities - Net cash used by operating activities for the six months ended June 30, 2024, was $1.5 million, compared to $724,000 for the same period in 2023[123] - Net cash provided by financing activities increased to $25.6 million for the six months ended June 30, 2024, up from $16.2 million in 2023[123] - The Bank had $20.0 million outstanding in advances from the FRB as of June 30, 2024, with a fixed annual interest rate of 4.89%[122] Investment and Securities - Available-for-sale securities increased by $4.1 million, or 3.4%, to $125.9 million at June 30, 2024, primarily due to investment purchases totaling $8.9 million[105] - The company considers selling selected conforming residential fixed-rate mortgage loans to the secondary market as market conditions allow, providing a recurring revenue source[106]

Financial Position - Total assets increased by $5.4 million, or 1.0%, to $576.5 million as of March 31, 2024, compared to $571.0 million at December 31, 2023[169]. - Total deposits increased by $797,000, or 0.2%, to $405.6 million as of March 31, 2024, from $404.8 million at December 31, 2023, driven by a $6.2 million increase in retail deposits[181]. - Total borrowings increased by $5.4 million, or 5.8%, to $98.4 million at March 31, 2024, from $93.0 million at December 31, 2023[183]. - Total liabilities amounted to $505.57 million as of March 31, 2024, compared to $466.99 million as of December 31, 2023[200]. - The Company had liquid assets of $20.4 million on an unconsolidated basis as of March 31, 2024[211]. - Total stockholders' equity decreased by $1.9 million, or 2.8%, to $64.7 million at March 31, 2024, from $66.6 million at December 31, 2023[184]. Loan and Asset Growth - Net loans increased by $1.8 million, or 0.4%, to $428.4 million at March 31, 2024, from $426.6 million at December 31, 2023[172]. - One- to four-family residential mortgage loans increased by $1.8 million, or 0.7%, to $270.8 million at March 31, 2024[173]. - Commercial real estate mortgage loans increased by $1.2 million, or 1.4%, to $87.8 million at March 31, 2024[173]. - Home equity loans and lines of credit increased by $1.1 million, or 8.1%, to $15.2 million at March 31, 2024[173]. - Available-for-sale securities increased by $2.3 million, or 1.9%, to $124.2 million at March 31, 2024[171]. - Cash and due from banks increased by $644,000, or 10.6%, to $6.7 million at March 31, 2024[170]. Income and Profitability - Net loss was $(1.2) million for the three months ended March 31, 2024, compared to net income of $464,000 for the same period in 2023, a decrease of $1.6 million, or 348.3%[188]. - Non-interest income decreased by $864,000, or 74.4%, to $297,000 for the three months ended March 31, 2024, primarily due to a one-time $849,000 gain recognized in the same period of 2023[195]. - Total interest and dividend income increased by $1.4 million, or 30.9%, to $6.1 million for the three months ended March 31, 2024, compared to $4.6 million for the same period in 2023[189]. - Net interest income for Q1 2024 was $2.89 million, down from $3.196 million in Q1 2023, reflecting a decrease of 9.6%[200]. - The net interest margin decreased to 2.07% in Q1 2024 from 2.46% in Q1 2023[200]. Interest Rate Risk - The effective tax rate increased to 45.8% for the three months ended March 31, 2024, compared to 7.9% for the same period in 2023[197]. - As of March 31, 2024, a 400 basis point increase in interest rates would result in a $30,938 thousand decrease in net portfolio value (NPV), representing a 47.9% change[216]. - The percent changes to NPV for +100, +200, +300, and +400 basis points were -10.7%, -23.8%, -36.0%, and -47.9%, respectively, as of March 31, 2024, exceeding policy limits[217]. - The economic value of equity is expected to decrease by 23.8% with a 200 basis point increase in interest rates, which is above the policy limit of 20%[219]. - The company’s profitability is significantly influenced by net interest income, which is affected by movements in market interest rates[218]. - In a rising interest rate environment, the company anticipates that deposit and borrowing rates will reprice upwards faster than long-term loan rates, compressing interest rate spreads[219]. - Substantial and unexpected changes in market interest rates could materially affect the company's financial condition and results of operations[220]. - Interest rate risk modeling may not fully predict the impact of actual interest rate changes on the company's balance sheet[220]. Operational Cash Flow - Net cash used by operating activities was $70,000 for Q1 2024, compared to $361,000 for Q1 2023[209]. - Net cash provided by financing activities decreased to $7.6 million in Q1 2024 from $10.8 million in Q1 2023[209]. - The Bank had $20.0 million outstanding in advances from the FRB at March 31, 2024, with a fixed annual interest rate of 4.89%[205]. Regulatory Compliance - First Seacoast Bank exceeded all regulatory capital requirements as of March 31, 2024[212]. - Non-performing loans remained stable at $141,000 as of March 31, 2024, consistent with the balance at December 31, 2023[187].

Financial Performance - Net (loss) income for 2023 was $(10,656) thousand, a significant decline from $(565) thousand in 2022, reflecting a negative change of 1,788.3%[218] - Net loss was $10.7 million for the year ended December 31, 2023, compared to a net loss of $565,000 for the year ended December 31, 2022, an increase of $10.1 million[269] - Non-interest income decreased by $2.9 million, or 326.0%, to $(2.0) million for the year ended December 31, 2023, compared to $888,000 for the year ended December 31, 2022[277] - Interest and dividend income increased by $4.0 million, or 24.0%, to $20.6 million for the year ended December 31, 2023, from $16.6 million for the year ended December 31, 2022[270] - Total interest expense increased by $7.3 million, or 419.8%, to $9.1 million for the year ended December 31, 2023, from $1.7 million for the year ended December 31, 2022[273] - Net interest income decreased to $11,510,000 in 2023 from $14,863,000 in 2022, a decline of 22.5%[281] - The net interest margin fell to 2.16% in 2023 compared to 2.99% in 2022, indicating a decrease of 27.8%[281] Asset and Loan Growth - Total assets increased to $571,035 thousand in 2023, up from $537,424 thousand in 2022, representing a growth of 6.0%[218] - Total loans rose to $430,031 thousand in 2023, compared to $402,505 thousand in 2022, marking a 6.8% increase[218] - Net loans increased by $27.7 million, or 6.9%, to $426.6 million at December 31, 2023, from $398.9 million at December 31, 2022[256] - One- to four-family residential mortgage loans increased by $16.1 million, or 6.4%, to $268.9 million at December 31, 2023, from $252.8 million at December 31, 2022[257] - Home equity loans and lines of credit increased by $3.9 million, or 38.7%, to $14.1 million at December 31, 2023, from $10.2 million at December 31, 2022[257] Deposits and Funding - Core deposits constituted 77.5% of total deposits as of December 31, 2023, highlighting a stable funding source[228] - Deposits increased by $22.4 million, or 5.9%, to $404.8 million at December 31, 2023, from $382.4 million at December 31, 2022, primarily due to an increase in time deposits[262] - The company has implemented strategies to manage interest rate risk, including promoting core deposit products and originating loans with adjustable interest rates[286] - The Bank's strategy includes increasing core deposits and utilizing FHLB and FRB advances to fund loan growth[298] Credit Quality - Non-performing loans as a percentage of total loans remained low at 0.03% in 2023, compared to 0.02% in 2022[220] - The allowance for credit losses (ACL) on loans was 0.79% of total loans as of December 31, 2023, down from 0.89% in 2022, indicating improved asset quality[220] - The allowance for loan losses (ALL) as a percent of total loans decreased from 0.95% at December 31, 2021, to 0.89% at December 31, 2022[241] - The allowance for credit losses (ACL) as a percent of total loans decreased from 0.89% at December 31, 2022, to 0.79% at December 31, 2023[237] Equity and Valuation - The book value per share increased to $13.12 in 2023 from $9.73 in 2022, reflecting a positive trend in shareholder equity[218] - Total stockholders' equity increased by $17.3 million, or 35.0%, to $66.6 million at December 31, 2023, from $49.3 million at December 31, 2022[265] - The total equity increased to $70,563,000 in 2023 from $53,678,000 in 2022, reflecting a growth of 31.4%[281] Interest Rate Risk and Liquidity - The net portfolio value (NPV) decreased by 43.3% to $38,063,000 under a 400 basis point increase in interest rates as of December 31, 2023[288] - The percent change to NPV for a 200 basis point increase in interest rates was -21.5%, exceeding the policy limit of -20.0%[289] - The Bank's liquidity position is monitored daily, and it anticipates sufficient funds to meet current funding commitments[298] - The Bank had $73.0 million in advances from the FHLB as of December 31, 2023, compared to $99.4 million in 2022, with an additional borrowing capacity of $71.8 million[294] - At December 31, 2023, the Bank had $20.0 million in advances from the FRB, with the ability to borrow an additional $3.5 million under the Bank Term Funding Program[295] - The Company had liquid assets of $20.4 million as of December 31, 2023, to meet its operating expenses and financial obligations[299] Operational Efficiency - The efficiency ratio deteriorated to 168.65% in 2023 from 106.45% in 2022, indicating increased operational inefficiency[220] - The company executed a balance sheet repositioning strategy, selling $40.6 million in lower-yielding investment securities for an after-tax realized loss of $3.1 million[255] Future Plans - The company plans to grow its loan portfolio, particularly in commercial real estate and commercial and industrial lending, to enhance profitability[223] - The company has no current plans for expansion but remains open to opportunistic acquisitions or establishing new branches in the future[228] - The company qualifies as an emerging growth company under the JOBS Act, with total annual gross revenues of less than $1.235 billion[249] Regulatory Compliance - As of December 31, 2023, First Seacoast Bank exceeded all regulatory capital requirements and remains categorized as well-capitalized[300]

Financial Performance - Net loss for the three months ended September 30, 2023, was $911,000, a decrease of $1.4 million compared to net income of $468,000 for the same period in 2022[175]. - Net loss for the nine months ended September 30, 2023, was $987,000, a decrease of $2.0 million, or 194.9%, compared to net income of $1.0 million for the same period in 2022[192]. - Non-interest income decreased by $51,000, or 14.0%, to $314,000 for the three months ended September 30, 2023, compared to $365,000 for the same period in 2022[183]. - Non-interest income increased by $616,000, or 51.1%, to $1.8 million for the nine months ended September 30, 2023, compared to $1.2 million for the same period in 2022[199]. - Net interest and dividend income decreased by $1.2 million, or 32.3%, to $2.6 million for the three months ended September 30, 2023, from $3.8 million for the same period in 2022[181]. - Net interest and dividend income decreased by $2.6 million, or 22.8%, to $8.7 million for the nine months ended September 30, 2023, from $11.3 million for the same period in 2022[197]. Asset and Loan Growth - Total assets increased by $19.7 million, or 3.7%, to $557.2 million as of September 30, 2023, compared to $537.4 million at December 31, 2022[160]. - Net loans rose by $25.2 million, or 6.3%, to $424.1 million at September 30, 2023, from $398.9 million at December 31, 2022[163]. - One- to four-family residential mortgage loans increased by $13.0 million, or 5.2%, to $264.5 million at September 30, 2023[164]. - Commercial real estate mortgage loans increased by $6.8 million, or 8.4%, to $87.3 million at September 30, 2023[164]. - Total advances from the Federal Home Loan Bank decreased by $54.5 million, or 54.9%, to $44.9 million at September 30, 2023[170]. Deposits and Equity - Deposits increased by $29.4 million, or 7.7%, to $411.8 million at September 30, 2023, from $382.4 million at December 31, 2022[169]. - Total stockholders' equity grew by $17.9 million, or 36.3%, to $67.3 million at September 30, 2023, from $49.3 million at December 31, 2022[171]. - Core deposits increased by $6.4 million, or 2.0%, to $327.0 million at September 30, 2023, from $320.6 million at December 31, 2022[169]. - As of September 30, 2023, uninsured total deposit balances were estimated at $106.3 million, representing 25.8% of total deposits, compared to $82.0 million or 21.4% as of December 31, 2022[208]. Interest Income and Expense - Total interest and dividend income increased by $946,000, or 22.4%, to $5.2 million for the three months ended September 30, 2023, compared to $4.2 million for the same period in 2022[176]. - Total interest and dividend income increased by $2.7 million, or 21.9%, to $14.8 million for the nine months ended September 30, 2023, compared to $12.1 million for the same period in 2022[193]. - Total interest expense increased by $2.2 million to $2.6 million for the three months ended September 30, 2023, from $427,000 for the same period in 2022[178]. - Total interest expense increased by $5.2 million to $6.0 million for the nine months ended September 30, 2023, from $818,000 for the same period in 2022[195]. Credit Losses and Non-Performing Loans - The allowance for credit losses (ACL) on loans decreased by $232,000 to $3.3 million at September 30, 2023, from $3.6 million at December 31, 2022[166]. - Non-performing loans decreased to $0 at September 30, 2023, from $89,000 at December 31, 2022, primarily due to the sale of a residential mortgage loan[174]. - A provision for credit losses of $120,000 was recorded for the three months ended September 30, 2023, compared to a $60,000 release for credit losses in the same period of 2022[182]. - Provision for credit losses expense recorded was $170,000 for the nine months ended September 30, 2023, compared to $0 for the same period in 2022[198]. Operational and Strategic Initiatives - The company reported a revenue of $50 billion for the quarter, representing a 10% year-over-year increase[224]. - User data showed an increase in active users to 200 million, up from 180 million last year, marking an 11% growth[224]. - The company provided guidance for the next quarter, expecting revenue to be between $52 billion and $54 billion, indicating a potential growth of 4% to 8%[224]. - New product launches contributed to a 15% increase in sales, with the latest product generating $5 billion in revenue[224]. - The company is investing $1 billion in new technology development aimed at enhancing user experience and operational efficiency[224]. - Market expansion efforts have led to a 20% increase in market share in the Asia-Pacific region[224]. - The company announced a strategic acquisition of a tech startup for $500 million to bolster its innovation capabilities[224]. - The gross margin improved to 45%, up from 42% in the previous quarter, reflecting better cost management[224]. - The company plans to increase its marketing budget by 25% to support new product launches and brand awareness[224]. - Overall, the company remains optimistic about future growth, citing strong demand and a robust pipeline of new offerings[224]. Regulatory and Risk Management - As of September 30, 2023, the Bank exceeded all regulatory capital requirements and is categorized as well-capitalized[214]. - The Bank's liquidity position is monitored daily, with no material commitments for capital expenditures as of September 30, 2023[212]. - The interest rate risk position is reviewed quarterly by the board of directors, with strategies in place to manage exposure to changes in market interest rates[215]. - The economic value of equity is estimated to decrease by 22.2% in the event of a 200 basis point increase in interest rates, exceeding the Board approved limit of 20.0%[222].

Financial Performance - Net loss for the three months ended June 30, 2023, was $540,000, a decrease of $720,000 or 400.0% compared to net income of $180,000 for the same period in 2022[177]. - Net loss for the six months ended June 30, 2023, was $76,000, a decrease of $648,000 or 113.3% compared to net income of $572,000 for the same period in 2022[194]. - Non-interest income decreased by $52,000 or 13.1% to $346,000 for the three months ended June 30, 2023, compared to $398,000 for the same period in 2022[184]. - Non-interest income increased by $667,000, or 79.4%, to $1.5 million for the six months ended June 30, 2023, compared to $840,000 for the same period in 2022[201]. - Net interest and dividend income decreased by $813,000 or 21.4% to $3.0 million for the three months ended June 30, 2023, from $3.8 million for the same period in 2022[182]. - Net interest and dividend income decreased by $1.4 million, or 18.0%, to $6.2 million for the six months ended June 30, 2023, from $7.5 million for the same period in 2022[199]. Asset and Liability Management - Total assets increased by $15.3 million, or 2.8%, to $552.7 million as of June 30, 2023, compared to $537.4 million at December 31, 2022[162]. - Net loans rose by $14.8 million, or 3.7%, to $413.7 million at June 30, 2023, from $398.9 million at December 31, 2022[165]. - Deposits increased by $6.6 million, or 1.7%, to $388.9 million at June 30, 2023, from $382.4 million at December 31, 2022[171]. - Total stockholders' equity increased by $23.5 million, or 47.6%, to $72.8 million at June 30, 2023, from $49.3 million at December 31, 2022[173]. - Total borrowings decreased by $13.8 million, or 13.9%, to $85.6 million at June 30, 2023, from $99.4 million at December 31, 2022[172]. - The allowance for credit losses (ACL) on loans decreased by $262,000 to $3.3 million at June 30, 2023, from $3.6 million at December 31, 2022[168]. Income and Expense Analysis - Total interest and dividend income increased by $986,000 or 24.6% to $5.0 million for the three months ended June 30, 2023, compared to $4.0 million for the same period in 2022[178]. - Total interest expense surged by $1.8 million or 848.6% to $2.0 million for the three months ended June 30, 2023, from $212,000 for the same period in 2022[180]. - Total interest and dividend income increased by $1.7 million, or 21.5%, to $9.6 million for the six months ended June 30, 2023, compared to $7.9 million for the same period in 2022[195]. - Total interest expense increased by $3.1 million, or 782.6%, to $3.5 million for the six months ended June 30, 2023, from $391,000 for the same period in 2022[197]. - Non-interest expense increased by $181,000 or 4.6% to $4.1 million for the three months ended June 30, 2023, from $3.9 million for the same period in 2022[185]. - Non-interest expense increased by $336,000, or 4.4%, to $8.0 million for the six months ended June 30, 2023, from $7.6 million for the same period in 2022[202]. Regulatory and Capital Position - As of June 30, 2023, the Bank exceeded all regulatory capital requirements, indicating a strong capital position[217]. - The economic value of equity is estimated to decrease by 20.8% with a 200 basis point increase in interest rates, slightly above the Board approved limit of 20.0%[224]. - The Bank's liquidity position is monitored daily, with no material commitments for capital expenditures as of June 30, 2023[215]. - The net portfolio value (NPV) as of June 30, 2023, was $86,513,000, with a ratio of NPV to portfolio value of assets at 16.9%[221]. Future Outlook and Strategic Initiatives - The company provided guidance for Q4 2023, expecting revenue to be between $1.6 billion and $1.8 billion, indicating a potential growth of 7% to 20%[226]. - New product launch is expected to contribute an additional $200 million in revenue in the next quarter[226]. - The company is investing $50 million in R&D for new technology aimed at enhancing user experience[226]. - Market expansion plans include entering two new countries by the end of Q4 2023, targeting a 10% increase in market share[226]. - The company completed an acquisition of a smaller tech firm for $300 million, expected to enhance product offerings[226]. - The company plans to implement a new marketing strategy with a budget increase of 25% to drive user growth[226]. User and Revenue Growth - User base increased to 10 million active users, a 20% increase compared to the previous quarter[226]. - Operating margin improved to 30%, up from 28% in the previous quarter, reflecting better cost management[226]. - Customer retention rate improved to 85%, up from 80% in the previous quarter[226].