First Seacoast Bancorp(FSEA) - 2023 Q1 - Quarterly Report

Financial Position - Total assets increased by $11.1 million, or 2.1$548.5 million as of March 31, 2023, compared to $537.4 million at December 31, 2022[142]. - Cash and due from banks rose by$8.4 million, or 101.5%, to $16.6 million at March 31, 2023, primarily due to$25.7 million of net proceeds from a stock offering[143]. - Net loans increased by $4.4 million, or 1.1$403.3 million at March 31, 2023, with $4.1 million of loans originated during the quarter[145]. - Deposits grew by$32.9 million, or 8.6%, to $415.3 million at March 31, 2023, driven by a$40.7 million increase in commercial deposits[151]. - Total stockholders' equity increased by $24.9 million, or 50.4$74.2 million at March 31, 2023, mainly due to $25.7 million of net proceeds from the stock conversion[154]. - The allowance for credit losses (ACL) on loans decreased by$294,000 to $3.3 million at March 31, 2023, reflecting the adoption of ASU 2016-13[148]. - Non-performing assets include loans that are 90 or more days past due, with management assessing collectability based on the financial condition of borrowers[155]. - Available-for-sale securities increased by$2.0 million, or 1.9%, to $108.1 million at March 31, 2023, attributed to a decrease in net unrealized losses[144]. - Total borrowings decreased by$46.7 million, or 47.0%, to $52.7 million at March 31, 2023, due to increased deposits and stock offering proceeds[152]. - Core deposits increased by$28.2 million, or 8.8%, to $348.8 million at March 31, 2023, with significant growth in savings and money market deposits[151]. Income and Expenses - Net income for the three months ended March 31, 2023, was$464,000, an increase of $72,000 or 18.4$392,000 for the same period in 2022[158]. - Total interest and dividend income increased by $721,000, or 18.4$4.6 million for the three months ended March 31, 2023, compared to $3.9 million for the same period in 2022[159]. - Average interest-earning assets rose by$36.9 million to $519.2 million for the three months ended March 31, 2023, from$482.3 million for the same period in 2022[160]. - Total interest expense surged by $1.3 million, or 704.5$1.4 million for the three months ended March 31, 2023, from $179,000 for the same period in 2022[161]. - Net interest and dividend income decreased by$540,000, or 14.5%, to $3.2 million for the three months ended March 31, 2023, from$3.7 million for the same period in 2022[163]. - Non-interest income increased by $719,000, or 162.7$1.2 million for the three months ended March 31, 2023, compared to $442,000 for the same period in 2022[165]. - Non-interest expense rose by$155,000, or 4.2%, to $3.8 million for the three months ended March 31, 2023, from$3.7 million for the same period in 2022[166]. - Provision for credit losses expense was $30,000 for the three months ended March 31, 2023, compared to$60,000 for the same period in 2022[164]. - The effective tax rate decreased to 7.9% for the three months ended March 31, 2023, from 12.9% for the same period in 2022[167]. - The annualized net interest margin decreased to 2.46% for the three months ended March 31, 2023, from 3.10% for the same period in 2022[163]. Liquidity and Capital Management - The aggregate amount of uninsured total deposit balances as of March 31, 2023, was estimated at $118.1 million, representing 28.4$82.0 million or 21.4% as of December 31, 2022[174]. - Net cash provided by financing activities for the three months ended March 31, 2023, was $10.8 million, down from$16.8 million in the same period of 2022[176]. - The economic value of equity analysis as of March 31, 2023, estimated a 17.6% decrease in economic value of equity with a 200 basis point increase in interest rates[186]. - As of March 31, 2023, First Seacoast Bank exceeded all regulatory capital requirements, indicating a strong capital position[179]. - The company had $52.7 million in advances from the Federal Home Loan Bank (FHLB) as of March 31, 2023, with the ability to borrow an additional$92.2 million[174]. - The net portfolio value (NPV) at a 400 basis point increase in interest rates would decrease by $34,002,000, representing a 34.4$2.1 million, significantly lower than $18.0 million in the same period of 2022[176]. - The company had liquid assets of$20.0 million as of March 31, 2023, to meet its operating expenses and financial obligations[178].