First Seacoast Bancorp(FSEA) - 2024 Q2 - Quarterly Report

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]