First Seacoast Bancorp(FSEA) - 2024 Q3 - Quarterly Report

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$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$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$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$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$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$16.7 million at September 30, 2024[106]. - Consumer loans rose by $2.5 million, or 25.0$12.3 million at September 30, 2024[106]. - Commercial real estate mortgage loans decreased by $870,000, or 1.0$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$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$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$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$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$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].