Financial Performance - Net (loss) income for 2023 was (565) thousand in 2022, reflecting a negative change of 1,788.3%[218] - Net loss was 565,000 for the year ended December 31, 2022, an increase of 2.9 million, or 326.0%, to 888,000 for the year ended December 31, 2022[277] - Interest and dividend income increased by 20.6 million for the year ended December 31, 2023, from 7.3 million, or 419.8%, to 1.7 million for the year ended December 31, 2022[273] - Net interest income decreased to 14,863,000 in 2022, a decline of 22.5%[281] - The net interest margin fell to 2.16% in 2023 compared to 2.99% in 2022, indicating a decrease of 27.8%[281] Asset and Loan Growth - Total assets increased to 537,424 thousand in 2022, representing a growth of 6.0%[218] - Total loans rose to 402,505 thousand in 2022, marking a 6.8% increase[218] - Net loans increased by 426.6 million at December 31, 2023, from 16.1 million, or 6.4%, to 252.8 million at December 31, 2022[257] - Home equity loans and lines of credit increased by 14.1 million at December 31, 2023, from 22.4 million, or 5.9%, to 382.4 million at December 31, 2022, primarily due to an increase in time deposits[262] - The company has implemented strategies to manage interest rate risk, including promoting core deposit products and originating loans with adjustable interest rates[286] - The Bank's strategy includes increasing core deposits and utilizing FHLB and FRB advances to fund loan growth[298] Credit Quality - Non-performing loans as a percentage of total loans remained low at 0.03% in 2023, compared to 0.02% in 2022[220] - The allowance for credit losses (ACL) on loans was 0.79% of total loans as of December 31, 2023, down from 0.89% in 2022, indicating improved asset quality[220] - The allowance for loan losses (ALL) as a percent of total loans decreased from 0.95% at December 31, 2021, to 0.89% at December 31, 2022[241] - The allowance for credit losses (ACL) as a percent of total loans decreased from 0.89% at December 31, 2022, to 0.79% at December 31, 2023[237] Equity and Valuation - The book value per share increased to 9.73 in 2022, reflecting a positive trend in shareholder equity[218] - Total stockholders' equity increased by 66.6 million at December 31, 2023, from 70,563,000 in 2023 from 38,063,000 under a 400 basis point increase in interest rates as of December 31, 2023[288] - The percent change to NPV for a 200 basis point increase in interest rates was -21.5%, exceeding the policy limit of -20.0%[289] - The Bank's liquidity position is monitored daily, and it anticipates sufficient funds to meet current funding commitments[298] - The Bank had 99.4 million in 2022, with an additional borrowing capacity of 20.0 million in advances from the FRB, with the ability to borrow an additional 20.4 million as of December 31, 2023, to meet its operating expenses and financial obligations[299] Operational Efficiency - The efficiency ratio deteriorated to 168.65% in 2023 from 106.45% in 2022, indicating increased operational inefficiency[220] - The company executed a balance sheet repositioning strategy, selling 3.1 million[255] Future Plans - The company plans to grow its loan portfolio, particularly in commercial real estate and commercial and industrial lending, to enhance profitability[223] - The company has no current plans for expansion but remains open to opportunistic acquisitions or establishing new branches in the future[228] - The company qualifies as an emerging growth company under the JOBS Act, with total annual gross revenues of less than $1.235 billion[249] Regulatory Compliance - As of December 31, 2023, First Seacoast Bank exceeded all regulatory capital requirements and remains categorized as well-capitalized[300]
First Seacoast Bancorp(FSEA) - 2023 Q4 - Annual Report