First Seacoast Bancorp, Inc.
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
FSEA$17.250.0%Stored close · as of Sep 30, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0000950170-25-067539
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0000950170-25-105491
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 85 previous paragraphs and 105 current paragraphs.
57 unchanged; 27 reworded; 10 added; 1 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 3 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Net (Loss) Income. Net loss was $545,000 for the three months ended June 30, 2025, compared to net income of $2.0 million for the three months ended June 30, 2024, a decrease of $2.5 million, or 127.2%. The decrease was due primarily to a decrease in non-interest income of $2.4 million, as a result of a one-time recognized gain of $2.5 million on the sale of land and buildings during the three months ended June 30, 2024.
Current report
Non-Interest Income. Non-interest income decreased $2.4 million, or 84.4%, to $451,000 for the three months ended June 30, 2025 compared to $2.9 million for the three months ended June 30, 2024. The decrease was due to a one-time $2.5 million gain on the sale of land and buildings recognized during the three months ended June 30, 2024 offset by a $101,000 increase in customer service fees during the three months ended June 30, 2025.
Current report
Interest and Dividend Income. Total interest and dividend income increased $807,000, or 6.5%, to $13.2 million for the six months ended June 30, 2025 compared to $12.3 million for the six months ended June 30, 2024. This increase was due to a $190,000 increase in interest and dividend income on investments and a $617,000 increase in interest and fees on loans.
Current report
Average interest-earning assets increased $15.7 million, to $577.4 million for the six months ended June 30, 2025 from $561.7 million for the six months ended June 30, 2024. The weighted average annualized yield on interest earning-assets increased to 4.56% for the six months ended June 30, 2025 from 4.40% for the six months ended June 30, 2024 primarily due to an increase in market interest rates. The weighted average annualized yield for the loan portfolio increased to 4.63% for the six months ended June 30, 2025 from 4.44% for the six months ended June 30, 2024 due primarily to new loan originations at higher current market interest rates and a repricing of certain variable rate loans. The weighted average annualized yield for all other interest-earning assets increased to 4.33% for the six months ended June 30, 2025 from 4.26% for the six months ended June 30, 2024 due primarily to an increase in market interest rates.
Current report
Interest Expense. Total interest expense increased $115,000, or 1.8%, to $6.5 million for the six months ended June 30, 2025 from $6.4 million for the six months ended June 30, 2024. Interest expense on deposits increased $977,000, or 23.2%, to $5.2 million for the six months ended June 30, 2025 from $4.2 million for the six months ended June 30, 2024. The average balance of interest-bearing deposits increased $52.8 million, or 15.4%, to $396.0 million for the six months ended June 30, 2025 from $343.3 million for the six months ended June 30, 2024 primarily as a result of an increase in the average balance of savings and time deposits offset by a decrease in the average balances of money market deposits. The weighted average annualized rate of interest-bearing deposits increased to 2.62% for the six months ended June 30, 2025 from 2.46% for the six months ended June 30, 2024 primarily as a result of an increase in market interest rates.
Current report
Interest expense on borrowings decreased $861,000, or 38.9%, to $1.4 million for the six months ended June 30, 2025 from $2.2 million for the six months ended June 30, 2024 primarily due to a decrease in the average balance of borrowings and a decrease in market interest rates. The average balance of borrowings decreased $35.0 million, or 37.4%, to $58.6 million for the six months ended June 30, 2025 from $93.6 million for the six months ended June 30, 2024. The weighted average annualized rate of borrowings decreased to 4.61% for the six months ended June 30, 2025 from 4.73% for the six months ended June 30, 2024.
Current report
Net Interest and Dividend Income. Net interest and dividend income increased $692,000, or 11.7%, to $6.6 million for the six months ended June 30, 2025 from $5.9 million for the six months ended June 30, 2024. This increase was due to an increase in the average balance of interest-earning assets, consisting primarily of increases in the average balances of loans, taxable debt securities, offset by a decrease in the average balance of non-taxable debt securities, and a decrease in the average balance of borrowings, offset by an increase in the average balance of interest-bearing liabilities, consisting primarily of an increase in the average balances of savings and time deposits offset by a decrease in the average balances of money market deposits during the six months ended June 30, 2025. Annualized net interest margin increased to 2.29% for the six months ended June 30, 2025 from 2.11% for the six months ended June 30, 2024 due primarily to an increase in net interest income offset by an increase in the average balance of interest-earning assets.
Current report
Non-Interest Income. Non-interest income decreased $2.4 million, or 74.9%, to $802,000 for the six months ended June 30, 2025 compared to $3.2 million for the six months ended June 30, 2024. The decrease was due primarily to a one-time $2.5 million gain on the sale of land and buildings recognized during the six months ended June 30, 2024 offset by a $120,000 increase in customer service fees during the three months ended June 30, 2025.
Current report
Average Balance Sheets
Current report
Rate/Volume Analysis
Removed paragraphs (1)
Previous report
Non-Interest Income. Non-interest income increased $54,000, or 18.2%, to $351,000 for the three months ended March 31, 2025 compared to $297,000 for the three months ended March 31, 2024. The increase in non-interest income during the three months ended March 31, 2025 was due primarily to an increase in investment and customer service fees.
Reworded paragraphs (27)
Previous wording
Management’s discussion and analysis of financial condition and results of operations is intended to assist in understanding the Company’s consolidated financial condition at March 31, 2025 and consolidated results of operations for the three months ended March 31, 2025 and 2024. It should be read in conjunction with our unaudited consolidated financial statements and accompanying notes presented elsewhere in this report and with the Company’s audited consolidated financial statements and accompanying notes presented in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed on March 21, 2025 with the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation.
Current wording
Management’s discussion and analysis of financial condition and results of operations is intended to assist in understanding the Company’s consolidated financial condition at June 30, 2025 and consolidated results of operations for the three and six months ended June 30, 2025 and 2024. It should be read in conjunction with our unaudited consolidated financial statements and accompanying notes presented elsewhere in this report and with the Company’s audited consolidated financial statements and accompanying notes presented in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed on March 21, 2025 with the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation.
Previous wording
Total Assets. Total assets were $592.6 million as of March 31, 2025, an increase of $11.9 million, or 2.0%, compared to total assets of $580.8 million at December 31, 2024. The increase was due primarily to a $9.6 million increase in net loans and a $3.3 million increase in securities available-for-sale offset by a $920,000 decrease in cash and due from banks.
Current wording
Total Assets. Total assets were $604.8 million as of June 30, 2025, an increase of $24.1 million, or 4.1%, compared to total assets of $580.8 million at December 31, 2024. The increase was due primarily to a $24.1 million increase in securities available-for-sale from the completion of a leveraged transaction consisting of the purchase of securities available-for-sale funded with brokered deposits.
Previous wording
Cash and Due From Banks. Cash and due from banks decreased $920,000, or 13.0%, to $6.2 million at March 31, 2025 from $7.1 million at December 31, 2024. This decrease primarily resulted from a $9.6 million increase in net loans and a $3.3 million increase in securities available-for-sale offset by an $11.1 million increase in borrowings and a $1.3 million increase in mortgagors' tax escrow during the three months ended March 31, 2025.
Current wording
Cash and Due From Banks. Cash and due from banks decreased $388,000, or 5.5%, to $6.7 million at June 30, 2025 from $7.1 million at December 31, 2024. This decrease resulted primarily from a $24.1 million increase in securities available-for-sale, offset by an $18.1 million increase in deposits and a $6.7 million increase in borrowings during the six months ended June 30, 2025.
Previous wording
Available-for-Sale Securities. Available-for-sale securities increased by $3.3 million, or 2.7%, to $123.5 million at March 31, 2025 from $120.2 million at December 31, 2024. This increase was due primarily to $6.9 million of investment purchases and a $124,000 decrease in net unrealized losses within the portfolio offset by proceeds from principal payments totaling $3.6 million during the three months ended March 31, 2025. Management believes that the unrealized losses within the portfolio are due to noncredit-related factors, including changes in market interest rates and other market conditions, and therefore we recorded no allowance for credit losses on available-for-sale debt securities as of March 31, 2025.
Current wording
Available-for-Sale Securities. Available-for-sale securities increased by $24.1 million, or 20.0%, to $144.3 million at June 30, 2025 from $120.2 million at December 31, 2024. This increase was primarily due to investment purchases totaling $31.7 million and a $258,000 decrease in net unrealized losses within the portfolio, offset by $7.7 million of proceeds from principal payments during the six months ended June 30, 2025. The unrealized losses within the portfolio are due to noncredit-related factors, including changes in market interest rates and other market conditions, and therefore we recorded no allowance for credit losses on available-for-sale debt securities as of June 30, 2025.
Previous wording
Net Loans. Net loans increased $9.6 million, or 2.2%, to $445.1 million at March 31, 2025 from $435.5 million at December 31, 2024. During the three months ended March 31, 2025, we originated $7.8 million of loans, net of principal collections, and purchased $1.5 million of participation interests in commercial loans through our membership in a national community bank loan program and $433,000 of consumer loans secured by manufactured housing properties. As of March 31, 2025 and December 31, 2024, the portfolio of purchased loans had outstanding principal balances of $35.7 million and $34.3 million, respectively, and were performing in accordance with their original repayment terms.
Current wording
Net Loans. Net loans increased $499,000, or 0.1%, to $436.0 million at June 30, 2025 from $435.5 million at December 31, 2024. During the six months ended June 30, 2025, we collected $3.0 million of loan principal, net of loan originations, and purchased $2.3 million of participation interests in commercial and industrial loans through our membership in a national community bank loan program and $1.0 million of consumer loans secured by manufactured housing properties. As of June 30, 2025 and December 31, 2024, the portfolio of purchased loans had outstanding principal balances of $36.9 million and $34.3 million, respectively, and were performing in accordance with their original repayment terms at each date.
Previous wording
One- to four-family residential mortgage loans increased $1.7 million, or 0.6%, to $277.0 million at March 31, 2025 from $275.2 million at December 31, 2024. Commercial real estate mortgage loans increased $3.5 million, or 4.1%, to $89.6 million at March 31, 2025 from $86.0 million at December 31, 2024. Multi-family loans decreased $90,000, or 1.6%, to $5.7 million at March 31, 2025 from $5.8 million at December 31, 2024. Commercial and industrial loans increased $854,000, or 3.6%, to $24.6 million at March 31, 2025 from $23.7 million at December 31, 2024. Acquisition, development, and land loans increased $2.5 million, or 16.5%, to $17.4 million at March 31, 2025 from $14.9 million at December 31, 2024. Home equity loans and lines of credit increased $1.1 million, or 5.2%, to $22.0 million at March 31, 2025 from $20.9 million at December 31, 2024. Consumer loans increased $82,000, or 0.7%, to $12.5 million at March 31, 2025 from $12.4 million at December 31, 2024.
Current wording
One- to four-family residential mortgage loans increased $646,000, or 0.2%, to $275.9 million at June 30, 2025 from $275.2 million at December 31, 2024. Commercial real estate mortgage loans decreased $65,000, or 0.1%, to $86.0 million at June 30, 2025 from December 31, 2024. Multi-family loans decreased $179,000, or 3.1%, to $5.6 million at June 30, 2025 from $5.8 million at December 31, 2024. Commercial and industrial loans increased $1.2 million, or 5.0%, to $24.9 million at June 30, 2025 from $23.7 million at December 31, 2024. Acquisition, development, and land loans decreased $1.9 million, or 12.5%, to $13.1 million at June 30, 2025 from $14.9 million at December 31, 2024. Home equity loans and lines of credit increased $446,000, or 2.1%, to $21.4 million at June 30, 2025 from $20.9 million at December 31, 2024. Consumer loans increased $362,000, or 2.9%, to $12.8 million at June 30, 2025 from $12.4 million at December 31, 2024.
Previous wording
Deposits. Our deposits are generated primarily from residents within our primary market area. We offer a selection of deposit accounts, including non-interest-bearing and interest-bearing checking accounts, savings accounts, money market accounts and time deposits, for both individuals and businesses. As of March 31, 2025 and December 31, 2024, the aggregate amount of uninsured total deposit balances, which is the portion exceeding the $250,000 FDIC insurance limit, was estimated not to exceed $111.4 million, or 24.5% of total deposits, and $112.2 million, or 24.7% of total deposits, respectively.
Current wording
Deposits. Our deposits are generated primarily from residents within our primary market area. We offer a selection of deposit accounts, including non-interest-bearing and interest-bearing checking accounts, savings accounts, money market accounts and time deposits, for both individuals and businesses. As of June 30, 2025 and December 31, 2024, the aggregate amount of uninsured total deposit balances, which is the portion exceeding the $250,000 FDIC insurance limit, was estimated not to exceed $102.5 million, or 21.7% of total deposits, and $112.2 million, or 24.7% of total deposits, respectively.
Previous wording
For customers requiring full FDIC insurance on certificates of deposit in excess of $250,000, we began offering in late 2023 the CDARS® program, which allows us to place the certificates of deposit with other participating banks to maximize the customers’ FDIC insurance coverage. We receive a like amount of deposits from other participating financial institutions. In addition, we offer the ICS™ program, an insured deposit “sweep” program for demand deposits which is a product offered by IntraFi Network, LLC, which is also the provider of the CDARS® program. Similarly to the certificates of deposit’s discussed above, we receive a like amount of deposits from other financial institutions and all customer deposits are insured by the FDIC. These “reciprocal” CDARS® and ICS deposits are classified as “brokered” deposits in regulatory reports and "core" deposits in our consolidated balance sheet. At March 31, 2025 our “reciprocal” CDARS® and ICS deposits were $-0- and $5.5 million, respectively. At December 31, 2024, our “reciprocal” CDARS® and ICS deposits were $-0- and $6.0 million, respectively.
Current wording
For customers requiring full FDIC insurance on certificates of deposit in excess of $250,000, we began offering in late 2023 the CDARS® program, which allows us to place the certificates of deposit with other participating banks to maximize the customers’ FDIC insurance. We receive a like amount of deposits from other participating financial institutions. In addition, we offer the ICS™ program, an insured deposit “sweep” program for demand deposits which is a product offered by IntraFi Network, LLC, which is also the provider of the CDARS® program. Similarly to the certificates of deposit’s discussed above, we receive a like amount of deposits from other financial institutions and all customer deposits are insured by the FDIC. These “reciprocal” CDARS® and ICS deposits are classified as “brokered” deposits in regulatory reports and "core" deposits in our consolidated balance sheet. At June 30, 2025 our “reciprocal” CDARS® and ICS deposits were $-0- and $5.5 million, respectively. At December 31, 2024, our “reciprocal” CDARS® and ICS deposits were $-0- and $6.0 million, respectively.
Previous wording
Deposits decreased $74,000 to $454.1 million at March 31, 2025 from $454.2 million at December 31, 2024 primarily as a result of a $1.8 million decrease in retail deposits offset by a $1.8 million increase in commercial deposits. Core deposits (defined as deposits other than time deposits, including CDARS® and ICS deposits) increased $1.1 million, or 0.4%, to $319.6 million at March 31, 2025 from $318.5 million at December 31, 2024. As of March 31, 2025, savings deposits decreased $840,000, money market deposits increased $351,000, NOW and demand deposits increased $1.6 million and time deposits decreased $1.2 million. There were $62.5 million and $63.1 million of brokered deposits included in time deposits at March 31, 2025 and December 31, 2024.
Current wording
Deposits increased $18.1 million, or 4.0%, to $472.3 million at June 30, 2025 from $454.2 million at December 31, 2024 primarily as a result of a $19.8 million increase in retail deposits offset by a $1.7 million decrease in commercial deposits. Core deposits (defined as deposits other than time deposits) decreased $8.7 million, or 2.7%, to $309.8 million at June 30, 2025 from $318.5 million at December 31, 2024. As of June 30, 2025, savings deposits decreased $1.9 million, money market deposits decreased $3.4 million, NOW and demand deposit accounts decreased $3.4 million and time deposits increased $26.7 million. The increase in time deposits consisted primarily of a $24.3 million increase in brokered deposits used to fund the purchase of securities available-for-sale in a leveraged investment transaction completed during the quarter. There were $87.4 million and $63.1 million of brokered deposits included in time deposits at June 30, 2025 and December 31, 2024, respectively.
Previous wording
Additionally, there were $22.0 million and $22.1 million of brokered deposits included in savings deposits at March 31, 2025 and December 31, 2024, respectively. Deposits from related parties totaled $11.4 million and $11.6 million at March 31, 2025 and December 31, 2024, respectively.
Current wording
Additionally, there were $22.0 million and $22.1 million of brokered deposits included in savings deposits at June 30, 2025 and December 31, 2024, respectively. Deposits from related parties totaled $10.4 million and $11.6 million at of June 30, 2025 and December 31, 2024, respectively.
Previous wording
Borrowings. Total borrowings from the FHLB increased $11.1 million, or 21.3%, to $63.4 million at March 31, 2025 from $52.3 million at December 31, 2024 in support of our investment and loan growth initiatives.
Current wording
Borrowings. Total borrowings from the FHLB increased $6.7 million, or 12.8%, to $59.0 million at June 30, 2025 from $52.3 million at December 31, 2024 in support of our investment and loan growth initiatives.
Previous wording
Total Stockholders’ Equity. Total stockholders’ equity decreased $824,000, or 1.3%, to $61.2 million at March 31, 2025 from $62.1 million at December 31, 2024. This decrease was due primarily to a net loss of $603,000 for the three months ended March 31, 2025 and $574,000 of common stock repurchases, partially offset by the recognition of $233,000 of previously unearned compensation.
Current wording
Total Stockholders’ Equity. Total stockholders’ equity decreased $1.2 million, or 2.0%, to $60.8 million at June 30, 2025 from $62.1 million at December 31, 2024. This decrease was due primarily to a net loss of $1.1 million for the six months ended June 30, 2025 and $836,000 of common stock repurchases, partially offset by the recognition of $469,000 of previously unearned compensation and $180,000 of other comprehensive income.
Previous wording
Non-performing loans were $-0- at March 31, 2025 and December 31, 2024. At March 31, 2025 and December 31, 2024, we had no foreclosed assets.
Current wording
Non-performing loans were $14,000 and $-0- at June 30, 2025 and December 31, 2024. At June 30, 2025 and December 31, 2024, we had no foreclosed assets.
Previous wording
Interest and Dividend Income. Total interest and dividend income increased $362,000, or 6.0%, to $6.4 million for the three months ended March 31, 2025 compared to $6.1 million for the three months ended March 31, 2024. This increase was due to a $64,000 increase in interest and dividend income on investments and a $298,000 increase in interest and fees on loans.
Current wording
Interest and Dividend Income. Total interest and dividend income increased $445,000, or 7.1%, to $6.7 million for the three months ended June 30, 2025 compared to $6.3 million for the three months ended June 30, 2024. This increase was due to a $126,000 increase in interest and dividend income on investments and a $319,000 increase in interest and fees on loans.
Previous wording
Average interest-earning assets increased $11.9 million, to $571.0 million for the three months ended March 31, 2025 from $559.1 million for the three months ended March 31, 2024. The weighted average annualized yield on interest earning-assets increased to 4.51% for the three months ended March 31, 2025 from 4.34% for the three months ended March 31, 2024 primarily due to an increase in market interest rates. The weighted average annualized yield for the loan portfolio increased to 4.57% for the three months ended March 31, 2025 from 4.40% for the three months ended March 31, 2024 due primarily to an increase in market interest rates. The weighted average annualized yield for all other interest-earning assets increased to 4.28% for the three months ended March 31, 2025 from 4.17% for the three months ended March 31, 2024 due primarily to an increase in market interest rates.
Current wording
Average interest-earning assets increased $19.4 million to $583.8 million for the three months ended June 30, 2025 from $564.4 million for the three months ended June 30, 2024. The weighted average annualized yield on interest earning-assets increased to 4.61% for the three months ended June 30, 2025 from 4.45% for the three months ended June 30, 2024 primarily due to an increase in market interest rates. The weighted average annualized yield for the loan portfolio increased to 4.68% for the three months ended June 30, 2025 from 4.48% for the three months ended June 30, 2024 due primarily to new loan originations at higher current market interest rates and repricing of certain variable rate loans. The weighted average annualized yield for all other interest-earning assets increased to 4.38% for the three months ended June 30, 2025 from 4.35% for the three months ended June 30, 2024.
Previous wording
Interest Expense. Total interest expense increased $74,000, or 2.3%, to $3.3 million for the three months ended March 31, 2025 from $3.2 million for the three months ended March 31, 2024. Interest expense on deposits increased $569,000, or 28.0%, to $2.6 million for the three months ended March 31, 2025 from $2.0 million for the three months ended March 31, 2024. The average balance of interest-bearing deposits increased $53.6 million, or 15.8%, to $392.4 million for the three months ended March 31, 2025 from $338.8 million for the three months ended March 31, 2024 primarily as a result of an increase in the average balances of savings deposits and time deposits offset by a decrease in the average balances of money market deposits. The weighted average annualized rate of interest-bearing deposits increased to 2.65% for the three months ended March 31, 2025 from 2.39% for the three months ended March 31, 2024 primarily as a result of an increase in market interest rates.
Current wording
Interest Expense. Total interest expense increased $41,000, or 1.3%, to $3.3 million for the three months ended June 30, 2025 and 2024. Interest expense on deposits increased $407,000, or 18.6%, to $2.6 million for the three months ended June 30, 2025 from $2.2 million for the three months ended June 30, 2024. The average balance of interest-bearing deposits increased $51.9 million, or 14.9%, to $399.6 million for the three months ended June 30, 2025 from $347.7 million for the three months ended June 30, 2024 primarily as a result of an increase in the average balance of savings and time deposits offset by a decrease in the average balances of demand and money market deposits. The weighted average annualized rate of interest-bearing deposits increased to 2.60% for the three months ended June 30, 2025 from 2.52% for the three months ended June 30, 2024 primarily as a result of an increase in market interest rates.
Previous wording
Interest expense on borrowings decreased $495,000, or 43.1%, to $654,000 for the three months ended March 31, 2025 from $1.1 million for the three months ended March 31, 2024 primarily due to the use of brokered deposits to fund our investment and loan growth initiatives. The average balance of borrowings decreased $40.4 million, or 41.5%, to $57.0 million for the three months ended March 31, 2025 from $97.4 million for the three months ended March 31, 2024. The weighted average annualized rate of borrowings decreased to 4.59% for the three months ended March 31, 2025 from 4.72% for the three months ended March 31, 2024 as a result of a decrease in market interest rates.
Current wording
Interest expense on borrowings decreased $366,000 to $697,000, or 34.4%, for the three months ended June 30, 2025 from $1.1 million for the three months ended June 30, 2024 primarily due to a decrease in the average balance of borrowings and a decrease in market interest rates. The average balance of borrowings decreased $29.6 million, or 33.0%, to $60.2 million for the three months ended June 30, 2025 from $89.7 million for the three months ended June 30, 2024. The weighted average annualized rate of borrowings decreased to 4.64% for the three months ended June 30, 2025 from 4.74% for the three months ended June 30, 2024 due to a decrease in market interest rates.
Previous wording
Net Interest and Dividend Income. Net interest and dividend income increased $288,000, or 10.0%, to $3.2 million for the three months ended March 31, 2025 from $2.9 million for the three months ended March 31, 2024. This increase was due to an increase of $11.9 million, or 2.1%, in the average balance of interest-earning assets, consisting primarily of an increase in the average balance of interest-earning loans, during the three months ended March 31, 2025 offset by a $13.3 million, or 3.0%, increase in the average balance of interest-bearing liabilities, consisting primarily of increases in the average balances of interest-bearing deposits offset by decreases in the average balances of borrowings. Annualized net interest margin increased to 2.23% for the three months ended March 31, 2025 from 2.07% for the three months ended March 31, 2024 due primarily to an increase in net interest income and an increase in the average yield on interest-earning assets.
Current wording
Net Interest and Dividend Income. Net interest and dividend income increased $404,000, or 13.4%, to $3.4 million for the three months ended June 30, 2025 from $3.0 million for the three months ended June 30, 2024. This increase was due to an increase of $19.4 million, or 3.4%, in the average balance of interest-earning assets, consisting primarily of increases in the average balances of loans and taxable debt securities offset by a decrease in the average balances of non-taxable debt securities, during the three months ended June 30, 2025. The average balance of interest-bearing liabilities increased $22.5 million, or 5.1%, and consisted primarily of increases in the average balances of savings and time deposits, offset by decreases in the average balances of borrowings and money market deposits. Annualized net interest margin increased to 2.35% for the three months ended June 30, 2025 from 2.14% for the three months ended June 30, 2024 due primarily to an increase in net interest income offset by an increase in the average balance of interest-earning assets.
Previous wording
Provision (Release) for Credit Losses. Based on management’s analysis of the ACL, a $-0- provision for credit losses was recorded for the three months ended March 31, 2025, compared to a $(20,000) release of credit losses for the three months ended March 31, 2024. The provision for credit losses for the three months ended March 31, 2025 consisted of $-0- for the provision for credit losses on available-for-sale securities, a $30,000 provision for credit losses on loans and a $(30,000) release of credit losses on off-balance sheet credit exposures. The release of credit losses for the three months ended March 31, 2024 consisted of $-0- for the provision for credit losses on available-for-sale securities, a $30,000 for the provision for credit losses on loans and a $(50,000) release of credit losses on off-balance sheet credit exposures.
Current wording
Provision (Release) for Credit Losses. Based on management’s analysis of the ACL, a $47,000 provision for credit losses was recorded for the three months ended June 30, 2025, compared to a $(16,000) release of credit losses expense for the three months ended June 30, 2024. The provision for credit losses for the three months ended June 30, 2025 consisted of a $-0- provision for credit losses on loans and a $47,000 provision for credit losses for off-balance sheet credit exposures. The release of credit losses for the three months ended June 30, 2024 consisted of a $30,000 provision for credit losses on loans and a $(46,000) release of credit losses for off-balance sheet credit exposures.
Previous wording
(4) Net deferred fee expense included in loan interest totaled $(141,000) and $(81,000) for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Net deferred fee expense included in loan interest totaled $100,000 and $120,000 for the three months ended June 30, 2025 and 2024, respectively.
Previous wording
Net Loss. Net loss was $603,000 for the three months ended March 31, 2025, compared to a net loss of $1.2 million for the three months ended March 31, 2024, a decrease of $549,000, or 47.7%. The decrease was due primarily to an increase in net interest and dividend income after provision (release) for credit losses of $268,000, an increase in total non-interest income of $54,000 and a decrease in income tax expense of $391,000, offset by an increase in total non-interest expense of $164,000, during the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
Current wording
Net (Loss) Income. Net loss was $1.1 million for the six months ended June 30, 2025, compared to net income of $851,000 for the six months ended June 30, 2024, a decrease of $2.0 million. The decrease was due primarily to a decrease in non-interest income of $2.4 million and an increase in non-interest expenses of $701,000 offset by an increase in net interest and dividend income after provision (release) for credit losses of $609,000 and a decrease in income tax expense of $481,000 during the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Previous wording
Non-Interest Expense. Non-interest expense increased $164,000, or 4.1%, to $4.2 million for the three months ended March 31, 2025 from $4.0 million for the three months ended March 31, 2024. The increase was primarily due to a $118,000 increase in salaries and employee benefits, a $133,000 increase in occupancy expense and a $53,000 increase in data processing, offset by a $52,000 decrease in professional fees and assessments and a $33,000 decrease in equipment expense. The increase in salaries and employee benefits was due to normal salary increases and an increase in compensation expense associated with incentive and non-statutory stock options granted in December 2024. The increase in occupancy expense was due primarily to the increase in lease expense associated with the sale-leaseback transaction completed on June 11, 2024.
Current wording
Non-Interest Expense. Non-interest expense increased $701,000, or 9.0%, to $8.5 million for the six months ended June 30, 2025 from $7.8 million for the six months ended June 30, 2024. The increase was primarily due to a $204,000 increase in salaries and employee benefits, a $140,000 increase in equity compensation expense, a $348,000 increase in occupancy expense and a $131,000 increase in data processing offset by a $58,000 decrease in equipment expense and a $46,000 decrease in professional fees and assessments. The increase in salaries and employee benefits was due to normal salary increases. The increase in equity compensation expense was due to the incentive and non-statutory stock options granted in December 2024. The increase in occupancy expense was due primarily to the increase in lease expense associated with the sale-leaseback transaction completed on June 11, 2024.
Previous wording
Income Taxes. Income tax expense decreased $391,000 to an income tax benefit of ($29,000) for the three months ended March 31, 2025 from an income tax expense of $362,000 for the three months ended March 31, 2024. The effective tax rate was 4.6% and 45.8% for the three months ended March 31, 2025 and 2024, respectively. Loss before income tax (benefit) expense was $(632,000) for the three months ended March 31, 2025 as compared to $(790,000) for the three months ended March 31, 2024. The income tax benefit and effective tax rate for the three months ended March 31, 2025 was less than statutory federal and state rates due primarily to a $120,000 increase in the deferred tax asset valuation allowance during the three months ended March 31, 2025. The income tax expense and effective tax rate for the three months ended March 31, 2024 was greater than statutory federal and state rates due primarily to a $645,000 increase in the deferred tax asset valuation allowance during the three months ended March 31, 2024. Net deferred tax assets of $7.0 million and $6.7 million as of March 31, 2025 and 2024, respectively, were reduced by a 100% valuation allowance because management believes that it is more likely than not that the benefit of these deferred tax assets will not be realized. The ultimate realization of these deferred tax assets is dependent upon the generation of future taxable income. The valuation allowance for these net deferred tax assets may be adjusted in the future if estimates of taxable income during the carryforward period are increased.
Current wording
Income Taxes. Income tax expense decreased $481,000, or 103.7%, to a benefit of $17,000 for the six months ended June 30, 2025 from an expense of $464,000 for the six months ended June 30, 2024. The effective tax rate was (1.5)% and 35.3% for the six months ended June 30, 2025 and 2024, respectively. Loss before income tax expense (benefit) was $1.2 million for the six months ended June 30, 2025 as compared to income before income tax expense (benefit) of $1.3 million for the six months ended June 30, 2024. The income tax benefit and effective tax rate for the six months ended June 30, 2025 was less than statutory federal and state rates due primarily to an increase in the deferred tax asset valuation allowance during the six months ended June 30, 2025. Net deferred tax assets of $7.2 million and $6.4 million as of June 30, 2025 and 2024, respectively, were reduced by a 100% valuation allowance because management believes that it is more likely than not that the benefit of these deferred tax assets will not be realized. The ultimate realization of these deferred tax assets is dependent upon the generation of future taxable income. The valuation allowance for these net deferred tax assets may be adjusted in the future if estimates of taxable income during the carryforward period are increased.
Previous wording
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. As of March 31, 2025 and December 31, 2024, the aggregate amount of uninsured total deposit balances, which is the portion exceeding the $250,000 FDIC insurance limit, was an estimated value not exceeding $111.4 million, or 24.5% of total deposits, and $112.2 million, or 24.7% of total deposits, respectively. Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from the sale of loans and proceeds from sales and maturities of securities. We also rely on borrowings from the FHLB and FRB as supplemental sources of funds. At March 31, 2025 and December 31, 2024, we had $63.4 million and $52.3 million outstanding in advances from the FHLB, respectively, and the ability to borrow an additional $88.8 million and $94.0 million, respectively.
Current wording
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. As of June 30, 2025 and December 31, 2024, the aggregate amount of uninsured total deposit balances, which is the portion exceeding the $250,000 FDIC insurance limit, had an estimated value not exceeding $102.5 million, or 21.7% of total deposits, and $112.2 million, or 24.7% of total deposits, respectively. Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from the sale of loans and proceeds from sales and maturities of securities. We also rely on borrowings from the FHLB and FRB as supplemental sources of funds. At June 30, 2025 and December 31, 2024, we had $59.0 million and $52.3 million outstanding in advances from the FHLB, respectively, and the ability to borrow an additional $90.6 million and $94.0 million, respectively.
Previous wording
At March 31, 2025 and December 31, 2024, the Bank had an overnight line of credit with the FHLB for up to $3.0 million. The Bank has a secured credit facility with the FRB – BIC Program. The Bank’s unused available borrowing capacity at the FRB was $38.5 million and $-0- at March 31, 2025 and December 31, 2024, respectively. Additionally, at March 31, 2025 and December 31, 2024, the Bank had a $2.0 million unsecured Fed Funds borrowing line of credit with a correspondent bank. At March 31, 2025 and December 31, 2024, there were no outstanding balances under any of these additional credit facilities.
Current wording
At June 30, 2025 and December 31, 2024, the Bank had an overnight line of credit with the FHLB for up to $3.0 million. The Bank has a secured credit facility with the FRB – BIC Program. The Bank’s unused available borrowing capacity at the FRB was $37.7 million and $-0- at June 30, 2025 and December 31, 2024, respectively. Additionally, at June 30, 2025 and December 31, 2024, the Bank had a $2.0 million unsecured Fed Funds borrowing line of credit with a correspondent bank. At June 30, 2025 and December 31, 2024, there were no outstanding balances under any of these additional credit facilities.
Previous wording
Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities and financing activities. Net cash provided (used) by operating activities was $573,000 and $(70,000) for the three months ended March 31, 2025 and 2024, respectively. Net cash used by investing activities, which consists primarily of disbursements for loan originations and purchases of securities available-for-sale offset by principal collections on loans and proceeds from the sale, maturity and principal payments on securities available-for-sale, was $13.3 million and $6.9 million for the three months ended March 31, 2025 and 2024, respectively. Net cash provided by financing activities, consisting primarily of activity in deposit accounts and FHLB advances offset by treasury stock purchases, was $11.8 million and $7.6 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities and financing activities. Net cash provided (used) by operating activities was $423,000 and $(1.5) million for the six months ended June 30, 2025 and 2024, respectively. Net cash used by investing activities, which consists primarily of disbursements for loan originations and purchases and the purchase of securities available-for-sale, offset by proceeds from the sale of land and building, principal collections on loans and proceeds from the sale, maturity and principal payments on securities available-for-sale, was $24.7 million and $4.8 million for the six months ended June 30, 2025 and 2024, respectively. Net cash provided by financing activities, consisting primarily of activity in deposit accounts and FHLB advances offset by treasury stock purchases, was $23.9 million and $25.6 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
First Seacoast Bancorp, Inc. is a separate legal entity from First Seacoast Bank and must provide for its own liquidity to pay its operating expenses and other financial obligations and to fund repurchases of shares of common stock. The Company’s primary source of income is dividends received from the Bank. The amount of dividends that the Bank may declare and pay to the Company is governed by applicable bank regulations. At March 31, 2025, the Company (on an unconsolidated basis) had liquid assets of $16.5 million.
Current wording
First Seacoast Bancorp, Inc. is a separate legal entity from First Seacoast Bank and must provide for its own liquidity to pay its operating expenses and other financial obligations and to fund repurchases of shares of common stock. The Company’s primary source of income is dividends received from the Bank. The amount of dividends that the Bank may declare and pay to the Company is governed by applicable bank regulations. At June 30, 2025, the Company (on an unconsolidated basis) had liquid assets of $16.2 million.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
Non-Interest Expense. Non-interest expense increased $537,000, or 14.0%, to $4.4 million for the three months ended June 30, 2025 from $3.8 million for the three months ended June 30, 2024. The increase was primarily due to a $154,000 increase in salaries and employee benefits, a $72,000 increase in equity compensation expense, a $215,000 increase in occupancy expense and a $78,000 increase in data processing. The increase in salaries and employee benefits was due to normal salary increases. The increase in equity compensation expense was due to the incentive and non-statutory stock options granted in December 2024. The increase in occupancy expense was due primarily to the increase in lease expense associated with the sale-leaseback transaction completed on June 11, 2024.
Current report — wording carried from elsewhere
Income Taxes. Income tax expense decreased $90,000, or 88.2%, to $12,000 for the three months ended June 30, 2025 from $102,000 for the three months ended June 30, 2024. The effective tax rate was 2.3% and 4.8% for the three months ended June 30, 2025 and 2024, respectively. (Loss) income before income tax (benefit) expense was $(533,000) for the three months ended June 30, 2025 as compared to $2.1 million for the three months ended June 30, 2024. The income tax expense and effective tax rate for the three months ended June 30, 2025 was greater than statutory federal and state rates due primarily to an increase in the deferred tax asset valuation allowance during the three months ended June 30, 2025. The income tax expense and effective tax rate for the three months ended June 30, 2024 was less than statutory federal and state rates due primarily to the utilization of certain Federal and New Hampshire net operating loss carryforward deferred tax assets and the release of the associated valuation allowances established at December 31, 2023 for these deferred tax assets. Net deferred tax assets of $7.2 million and $6.4 million as of June 30, 2025 and
Current report — wording carried from elsewhere
2024, respectively, were reduced by a 100% valuation allowance because management believes that it is more likely than not that the benefit of these deferred tax assets will not be realized. The ultimate realization of these deferred tax assets is dependent upon the generation of future taxable income. The valuation allowance for these net deferred tax assets may be adjusted in the future if estimates of taxable income during the carryforward period are increased.
Current report — wording carried from elsewhere
Comparison of Operating Results for the Six Months Ended June 30, 2025 and June 30, 2024
Current report — wording carried from elsewhere
Provision (Release) for Credit Losses. Based on management’s analysis of the ACL, a $47,000 provision for credit losses was recorded for the six months ended June 30, 2025, compared to a $(36,000) release of credit losses for the six months ended June 30, 2024. The provision for credit losses for the six months ended June 30, 2025 consisted of a $-0- provision for credit losses on loans and a $47,000 provision for credit losses for off-balance sheet credit exposures. The release of credit losses for the six months ended June 30, 2024 consisted of a $60,000 provision for credit losses on loans and a $(96,000) release of credit losses for off-balance sheet credit exposures.
Current report — wording carried from elsewhere
The following table sets forth average balance sheets, average yields and costs and certain other information at and for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans are included in the computation of average balances only. The yields set forth below include the effect of net deferred fee income, discounts and premiums that are amortized or accreted to interest income or interest expense. Average loan balances exclude loans held for sale, if applicable. The following table includes no out-of-period items or adjustments.
Current report — wording carried from elsewhere
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
Current report — wording carried from elsewhere
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
Current report — wording carried from elsewhere
Net interest margin represents net interest income divided by average total interest-earning assets.
Current report — wording carried from elsewhere
Net deferred fee expense included in loan interest totaled $242,000 and $201,000 for the six months ended June 30, 2025 and 2024, respectively.
Current report — wording carried from elsewhere
The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume.