First Seacoast Bancorp(FSEA) - 2023 Q2 - Quarterly Report

Financial Performance - Net loss for the three months ended June 30, 2023, was $540,000, a decrease of$720,000 or 400.0% compared to net income of $180,000 for the same period in 2022[177]. - Net loss for the six months ended June 30, 2023, was$76,000, a decrease of $648,000 or 113.3$572,000 for the same period in 2022[194]. - Non-interest income decreased by $52,000 or 13.1$346,000 for the three months ended June 30, 2023, compared to $398,000 for the same period in 2022[184]. - Non-interest income increased by$667,000, or 79.4%, to $1.5 million for the six months ended June 30, 2023, compared to$840,000 for the same period in 2022[201]. - Net interest and dividend income decreased by $813,000 or 21.4$3.0 million for the three months ended June 30, 2023, from $3.8 million for the same period in 2022[182]. - Net interest and dividend income decreased by$1.4 million, or 18.0%, to $6.2 million for the six months ended June 30, 2023, from$7.5 million for the same period in 2022[199]. Asset and Liability Management - Total assets increased by $15.3 million, or 2.8$552.7 million as of June 30, 2023, compared to $537.4 million at December 31, 2022[162]. - Net loans rose by$14.8 million, or 3.7%, to $413.7 million at June 30, 2023, from$398.9 million at December 31, 2022[165]. - Deposits increased by $6.6 million, or 1.7$388.9 million at June 30, 2023, from $382.4 million at December 31, 2022[171]. - Total stockholders' equity increased by$23.5 million, or 47.6%, to $72.8 million at June 30, 2023, from$49.3 million at December 31, 2022[173]. - Total borrowings decreased by $13.8 million, or 13.9$85.6 million at June 30, 2023, from $99.4 million at December 31, 2022[172]. - The allowance for credit losses (ACL) on loans decreased by$262,000 to $3.3 million at June 30, 2023, from$3.6 million at December 31, 2022[168]. Income and Expense Analysis - Total interest and dividend income increased by $986,000 or 24.6$5.0 million for the three months ended June 30, 2023, compared to $4.0 million for the same period in 2022[178]. - Total interest expense surged by$1.8 million or 848.6% to $2.0 million for the three months ended June 30, 2023, from$212,000 for the same period in 2022[180]. - Total interest and dividend income increased by $1.7 million, or 21.5$9.6 million for the six months ended June 30, 2023, compared to $7.9 million for the same period in 2022[195]. - Total interest expense increased by$3.1 million, or 782.6%, to $3.5 million for the six months ended June 30, 2023, from$391,000 for the same period in 2022[197]. - Non-interest expense increased by $181,000 or 4.6$4.1 million for the three months ended June 30, 2023, from $3.9 million for the same period in 2022[185]. - Non-interest expense increased by$336,000, or 4.4%, to $8.0 million for the six months ended June 30, 2023, from$7.6 million for the same period in 2022[202]. Regulatory and Capital Position - As of June 30, 2023, the Bank exceeded all regulatory capital requirements, indicating a strong capital position[217]. - The economic value of equity is estimated to decrease by 20.8% with a 200 basis point increase in interest rates, slightly above the Board approved limit of 20.0%[224]. - The Bank's liquidity position is monitored daily, with no material commitments for capital expenditures as of June 30, 2023[215]. - The net portfolio value (NPV) as of June 30, 2023, was $86,513,000, with a ratio of NPV to portfolio value of assets at 16.9$1.6 billion and $1.8 billion, indicating a potential growth of 7$200 million in revenue in the next quarter[226]. - The company is investing 50 million in R&D for new technology aimed at enhancing user experience[226]. - Market expansion plans include entering two new countries by the end of Q4 2023, targeting a 10% increase in market share[226]. - The company completed an acquisition of a smaller tech firm for 300 million, expected to enhance product offerings[226]. - The company plans to implement a new marketing strategy with a budget increase of 25% to drive user growth[226]. User and Revenue Growth - User base increased to 10 million active users, a 20% increase compared to the previous quarter[226]. - Operating margin improved to 30%, up from 28% in the previous quarter, reflecting better cost management[226]. - Customer retention rate improved to 85%, up from 80% in the previous quarter[226].