First Seacoast Bancorp(US:FSEA)2023-11-08 16:00Financial 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].