First Seacoast Bancorp(FSEA) - 2024 Q1 - Quarterly Report

Financial Position - Total assets increased by $5.4 million, or 1.0%, to$ 576.5 million as of March 31, 2024, compared to $571.0 million at December 31, 2023[169]. - Total deposits increased by$ 797,000, or 0.2%, to $405.6 million as of March 31, 2024, from$ 404.8 million at December 31, 2023, driven by a $6.2 million increase in retail deposits[181]. - Total borrowings increased by$ 5.4 million, or 5.8%, to $98.4 million at March 31, 2024, from$ 93.0 million at December 31, 2023[183]. - Total liabilities amounted to $505.57 million as of March 31, 2024, compared to$ 466.99 million as of December 31, 2023[200]. - The Company had liquid assets of $20.4 million on an unconsolidated basis as of March 31, 2024[211]. - Total stockholders' equity decreased by$ 1.9 million, or 2.8%, to $64.7 million at March 31, 2024, from$ 66.6 million at December 31, 2023[184]. Loan and Asset Growth - Net loans increased by $1.8 million, or 0.4%, to$ 428.4 million at March 31, 2024, from $426.6 million at December 31, 2023[172]. - One- to four-family residential mortgage loans increased by$ 1.8 million, or 0.7%, to $270.8 million at March 31, 2024[173]. - Commercial real estate mortgage loans increased by$ 1.2 million, or 1.4%, to $87.8 million at March 31, 2024[173]. - Home equity loans and lines of credit increased by$ 1.1 million, or 8.1%, to $15.2 million at March 31, 2024[173]. - Available-for-sale securities increased by$ 2.3 million, or 1.9%, to $124.2 million at March 31, 2024[171]. - Cash and due from banks increased by$ 644,000, or 10.6%, to $6.7 million at March 31, 2024[170]. Income and Profitability - Net loss was$ (1.2) million for the three months ended March 31, 2024, compared to net income of $464,000 for the same period in 2023, a decrease of$ 1.6 million, or 348.3%[188]. - Non-interest income decreased by $864,000, or 74.4%, to$ 297,000 for the three months ended March 31, 2024, primarily due to a one-time $849,000 gain recognized in the same period of 2023[195]. - Total interest and dividend income increased by$ 1.4 million, or 30.9%, to $6.1 million for the three months ended March 31, 2024, compared to$ 4.6 million for the same period in 2023[189]. - Net interest income for Q1 2024 was $2.89 million, down from$ 3.196 million in Q1 2023, reflecting a decrease of 9.6%[200]. - The net interest margin decreased to 2.07% in Q1 2024 from 2.46% in Q1 2023[200]. Interest Rate Risk - The effective tax rate increased to 45.8% for the three months ended March 31, 2024, compared to 7.9% for the same period in 2023[197]. - As of March 31, 2024, a 400 basis point increase in interest rates would result in a $30,938 thousand decrease in net portfolio value (NPV), representing a 47.9% change[216]. - The percent changes to NPV for +100, +200, +300, and +400 basis points were -10.7%, -23.8%, -36.0%, and -47.9%, respectively, as of March 31, 2024, exceeding policy limits[217]. - The economic value of equity is expected to decrease by 23.8% with a 200 basis point increase in interest rates, which is above the policy limit of 20%[219]. - The company’s profitability is significantly influenced by net interest income, which is affected by movements in market interest rates[218]. - In a rising interest rate environment, the company anticipates that deposit and borrowing rates will reprice upwards faster than long-term loan rates, compressing interest rate spreads[219]. - Substantial and unexpected changes in market interest rates could materially affect the company's financial condition and results of operations[220]. - Interest rate risk modeling may not fully predict the impact of actual interest rate changes on the company's balance sheet[220]. Operational Cash Flow - Net cash used by operating activities was$ 70,000 for Q1 2024, compared to $361,000 for Q1 2023[209]. - Net cash provided by financing activities decreased to$ 7.6 million in Q1 2024 from $10.8 million in Q1 2023[209]. - The Bank had$ 20.0 million outstanding in advances from the FRB at March 31, 2024, with a fixed annual interest rate of 4.89%[205]. Regulatory Compliance - First Seacoast Bank exceeded all regulatory capital requirements as of March 31, 2024[212]. - Non-performing loans remained stable at $141,000 as of March 31, 2024, consistent with the balance at December 31, 2023[187].