First Seacoast Bancorp(US:FSEA)2025-03-21 12:59Financial 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]