First Seacoast Bancorp(FSEA) - 2022 Q4 - Annual Report

Financial Performance - Net (loss) income for 2022 was $(565,000), compared to a net income of$2,621,000 in 2021, indicating a significant decrease[196]. - Net loss for the year ended December 31, 2022, was $565,000, a decrease of$3.2 million, or 121.6%, compared to net income of $2.6 million for the year ended December 31, 2021[233]. - Non-interest income decreased by$1.4 million, or 60.5%, to $888,000 for the year ended December 31, 2022, compared to$2.2 million in 2021[240]. - Non-interest expense increased by $3.7 million, or 28.2$16.8 million for the year ended December 31, 2022, from $13.1 million in 2021[241]. - Income tax benefit was$451,000 for the year ended December 31, 2022, compared to an income tax expense of $601,000 for the year ended December 31, 2021[242]. Asset and Loan Growth - Total assets increased to$537,424,000 in 2022 from $487,074,000 in 2021, representing a growth of 10.7$402,505,000 in 2022, up from $376,641,000 in 2021, marking a 6.8$50.3 million, or 10.3%, to $537.4 million as of December 31, 2022, compared to$487.1 million at December 31, 2021[217]. - Net loans increased by $25.9 million, or 6.9$398.9 million at December 31, 2022, from $373.1 million at December 31, 2021[220]. - The company originated$98.9 million of loans during the year ended December 31, 2022[220]. Deposit Trends - Total deposits decreased to $382,363,000 in 2022, down from$393,243,000 in 2021, a decline of 2.2%[196]. - Deposits decreased by $10.9 million, or 2.8$382.4 million at December 31, 2022, from $393.2 million at December 31, 2021[226]. - Core deposits constituted 83.9$14.3 million, or 4.3%, to $320.6 million at December 31, 2022, from$334.9 million at December 31, 2021[226]. Borrowings and Funding - Total borrowings increased by $69.9 million, or 237.4$99.4 million at December 31, 2022, from $29.5 million at December 31, 2021[227]. - The ratio of net loans to deposits was 104.3$99.4 million in advances from the Federal Home Loan Bank and the ability to borrow an additional $36.5 million[258]. Asset Quality - Non-performing loans as a percentage of total loans improved to 0.02$89,000, or 0.02% of total loans, at December 31, 2022, down from $837,000, or 0.22$1.1 million, or 7.2%, to $16.6 million for the year ended December 31, 2022, from$15.5 million in 2021[234]. - Total interest expense increased by $512,000, or 41.5$1.7 million for the year ended December 31, 2022, from $1.2 million in 2021[236]. - Net interest and dividend income increased by$603,000, or 4.2%, to $14.9 million for the year ended December 31, 2022, from$14.3 million in 2021[238]. - The weighted average yield on interest-earning assets increased by 3 basis points to 3.34% for the year ended December 31, 2022, from 3.31% in 2021[235]. Capital and Regulatory Compliance - The company exceeded all regulatory capital requirements as of December 31, 2022, and is categorized as well-capitalized[263]. - Total stockholders' equity decreased by $11.1 million, or 18.4$49.3 million at December 31, 2022, from $60.5 million at December 31, 2021[228]. Cash Flow and Investments - Net cash provided by operating activities was$973,000 for the year ended December 31, 2022, down from $2.4 million in 2021[260]. - The net cash used by investing activities was$58.1 million for the year ended December 31, 2022, compared to $43.5 million in 2021[260]. Market Strategy - The company plans to grow its loan portfolio, particularly in commercial real estate and commercial and industrial lending, to enhance profitability[202]. - The company aims to grow organically and through opportunistic acquisitions or new branch openings to enhance market share[202]. Interest Rate Sensitivity - The economic value of equity is estimated to decrease by 16.7$31,915,000 (32.9%) with a 400 basis point increase in interest rates as of December 31, 2022[252].