First Seacoast Bancorp, Inc.
For the period ended Sep 30, 2025. Filed Nov 14, 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.
Sep 30, 2025 · Filed Nov 14, 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 2025-06-30; filed 2025-08-08.
0000950170-25-105491
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-14.
0001193125-25-281704
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 105 previous paragraphs and 105 current paragraphs.
63 unchanged; 38 reworded; 3 added; 3 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 5 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 (3)
Current report
Net Income (Loss). Net income was $390,000 for the three months ended September 30, 2025, compared to net income of $44,000 for the three months ended September 30, 2024, an increase of $346,000. The increase was due primarily to a $465,000 increase in net interest and dividend income and a $180,000 increase in non-interest income offset by an increase in non-interest expenses of $268,000 during the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Current report
Non-Interest Income. Non-interest income increased $180,000, or 49.5%, to $544,000 for the three months ended September 30, 2025 compared to $364,000 for the three months ended September 30, 2024. The increase in non-interest income during the three months ended September 30, 2025 was due primarily to a $95,000 increase in customer service fees and an $88,000 increase in gain on sale of loans. During the three months ended September 30, 2025 a commercial and industrial loan originated under the Small Business Administration7(a) Guarantee program was sold. The 75% guarantee portion of the loan was sold, on a servicing-retained basis, at a gain of $102,000.
Current report
Income Taxes. Income tax benefit increased $437,000, or 248.3%, to a benefit of $613,000 for the nine months ended September 30, 2025 from a benefit of $176,000 for the nine months ended September 30, 2024. The effective tax rate was (44.7)% and (24.5)% for the nine months ended September 30, 2025 and 2024, respectively. The income tax benefit and effective tax rate for the nine months ended September 30, 2025 was greater than statutory federal and state rates due primarily to a $725,000 reduction of the deferred tax asset valuation allowance as of September 30, 2025 resulting from the change in accumulated other comprehensive income during the nine months ended September 30, 2025.
Removed paragraphs (3)
Previous 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.
Previous report
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 report
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.
Reworded paragraphs (38)
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 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.
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 September 30, 2025 and consolidated results of operations for the three and nine months ended September 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 $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.
Current wording
Total Assets. Total assets were $609.6 million as of September 30, 2025, an increase of $28.8 million, or 5.0%, compared to total assets of $580.8 million at December 31, 2024. The increase was due primarily to a $12.5 million increase in cash and due from banks and a $22.3 million increase in securities available-for-sale, offset by a $5.5 million decrease in net loans.
Previous 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.
Current wording
Cash and Due From Banks. Cash and due from banks increased $12.5 million, or 175.7%, to $19.6 million at September 30, 2025 from $7.1 million at December 31, 2024. This increase primarily resulted from a $27.3 million increase in total deposits and mortgagors' escrow accounts and a $5.5 million decrease in net loans, offset by $20.0 million of net purchases of securities available-for-sale during the nine months ended September 30, 2025.
Previous 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.
Current wording
Available-for-Sale Securities. Available-for-sale securities increased by $22.3 million, or 18.6%, to $142.5 million at September 30, 2025 from $120.2 million at December 31, 2024. This increase was primarily due to investment purchases totaling $32.1 million and a $2.7 million decrease in net unrealized losses within the portfolio, offset by $12.1 million of proceeds from maturities and principal payments during the nine months ended September 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 September 30, 2025.
Previous 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.
Current wording
Net Loans. Net loans decreased $5.5 million, or 1.3%, to $430.0 million at September 30, 2025 from $435.5 million at December 31, 2024. During the nine months ended September 30, 2025, we collected $9.2 million of loan principal, net of new 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 $1.3 million of consumer loans secured by manufactured housing properties. As of September 30, 2025 and December 31, 2024, the portfolio of purchased loans had an outstanding principal balance of $37.0 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 $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.
Current wording
One- to four-family residential mortgage loans decreased $4.1 million, or 1.5%, to $271.1 million at September 30, 2025 from $275.2 million at December 31, 2024. Commercial real estate mortgage loans increased $1.2 million, or 1.4%, to $87.2 million at September 30, 2025 from $86.0 million at December 31, 2024. Multi-family loans decreased $1.1 million, or 18.3%, to $4.7 million at September 30, 2025 from $5.8 million at December 31, 2024. Commercial and industrial loans increased $971,000, or 4.1%, to $24.7 million at September 30, 2025 from $23.7 million at December 31, 2024. Acquisition, development, and land loans decreased $2.9 million, or 19.3%, to $12.1 million at September 30, 2025 from $14.9 million at December 31, 2024. Home equity loans and lines of credit increased $540,000, or 2.6%, to $21.4 million at September 30, 2025 from $20.9 million at December 31, 2024. Consumer loans were $12.4 million at September 30, 2025 and December 31, 2024.
Previous wording
Our ACL on loans was $3.5 million at June 30, 2025 and December 31, 2024 based upon ASU 2016-13 and its credit impairment standard for financial assets measured at amortized cost and available-for-sale debt securities. The ASU requires financial assets measured at amortized cost, including loans, to be presented at the net amount expected to be collected, through an ACL that are expected to occur over the remaining life of the asset, rather than incurred losses. The ASU requires the measurement of all expected credit losses for loans held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, the ASU requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied at prior reporting dates are still permitted, though the inputs to those techniques have changed to reflect the full amount of expected credit losses. We have selected the Weighted Average Remaining Maturity Model (“WARM” or "CECL model"), for the loss calculation of each of our loan pools utilizing a third-party software application. The WARM uses a quarterly loss rate and future expectations of loan balances to calculate an ACL. A loss rate is applied to pool balances over time.
Current wording
Our ACL on loans was $3.5 million at September 30, 2025 and December 31, 2024 based upon ASU 2016-13 and its credit impairment standard for financial assets measured at amortized cost and available-for-sale debt securities. The ASU requires financial assets measured at amortized cost, including loans, to be presented at the net amount expected to be collected, through an ACL that are expected to occur over the remaining life of the asset, rather than incurred losses. The ASU requires the measurement of all expected credit losses for loans held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, the ASU requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied at prior reporting dates are still permitted, though the inputs to those techniques have changed to reflect the full amount of expected credit losses. We have selected the Weighted Average Remaining Maturity Model (“WARM” or
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 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.
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 September 30, 2025 and December 31, 2024, the aggregate amount of uninsured deposit balances, which is the portion exceeding the $250,000 FDIC insurance limit, was estimated not to exceed $111.9 million, or 23.3% 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. 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.
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 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 September 30, 2025 our “reciprocal” CDARS® and ICS deposits were $-0- and $9.1 million, respectively. At December 31, 2024, our “reciprocal” CDARS® and ICS deposits were $-0- and $6.0 million, respectively.
Previous 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.
Current wording
Deposits increased $25.8 million, or 5.7%, to $480.0 million at September 30, 2025 from $454.2 million at December 31, 2024 primarily as a result of a $5.2 million increase in commercial deposits and a $20.6 million increase in retail deposits. Core deposits (defined as deposits other than time deposits) increased $4.6 million, or 1.5%, to $323.1 million at September 30, 2025 from $318.5 million at December 31, 2024. As of September 30, 2025, savings deposits decreased $987,000, money market deposits decreased $1.4 million, NOW and demand deposit accounts increased $7.1 million and time deposits increased $21.2 million. The increase in time deposits included an $11.8 million increase in brokered deposits which consisted of $24.3 million of new brokered deposits used to fund the purchase of securities available-for-sale in a leveraged investment transaction completed in May 2025 offset by $12.5 million of brokered deposits called by the Company in September 2025. There were $75.0 million and $63.1 million of brokered deposits included in time deposits at September 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 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.
Current wording
Additionally, there were $22.0 million and $22.1 million of brokered deposits included in savings deposits at September 30, 2025 and December 31, 2024, respectively. Deposits from related parties totaled $12.6 million and $11.6 million at September 30, 2025 and December 31, 2024, respectively.
Previous 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.
Current wording
Borrowings. Total borrowings from the FHLB decreased $520,000, or 1.0%, to $51.7 million at September 30, 2025 from $52.3 million at December 31, 2024.
Previous 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.
Current wording
Total Stockholders’ Equity. Total stockholders’ equity increased $1.1 million, or 1.8%, to $63.2 million at September 30, 2025 from $62.1 million at December 31, 2024. This increase was due primarily to other comprehensive income of $2.0 million related to net changes in unrealized holding losses in the available-for-sale securities portfolio as a result of decreases in market interest rates during the nine months ended September 30, 2025 and the recognition of $834,000 of previously unearned compensation offset by a net loss of $758,000 for the nine months ended September 30, 2025 and $935,000 of common stock repurchases.
Previous 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.
Current wording
Non-performing loans were $194,000 and $-0- at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025, non-performing loans consisted of a residential mortgage loan with an outstanding balance of $65,000 and an estimated collateral market value of $275,000, a consumer loan secured by a manufactured housing property with an outstanding balance of $117,000 and an estimated collateral market value of $124,000 and an unsecured consumer loan with an outstanding balance of $12,000. At September 30, 2025 and December 31, 2024, we had no foreclosed assets.
Previous wording
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 wording
Interest and Dividend Income. Total interest and dividend income increased $344,000, or 5.3%, to $6.9 million for the three months ended September 30, 2025 compared to $6.6 million for the three months ended September 30, 2024 due primarily to an increase in interest and dividend income on investments.
Previous 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.
Current wording
Average interest-earning assets increased $18.7 million, to $593.3 million for the three months ended September 30, 2025 from $574.6 million for the three months ended September 30, 2024. The weighted average annualized yield on interest earning-assets increased to 4.65% for the three months ended September 30, 2025 from 4.56% for the three months ended September 30, 2024 primarily due to an increase in market interest rates. The weighted average annualized yield for the loan portfolio increased to 4.72% for the three months ended September 30, 2025 from 4.67% for the three months ended September 30, 2024 due primarily to an increase in market interest rates. The weighted average annualized yield for all other interest-earning assets increased to 4.46% for the three months ended September 30, 2025 from 4.22% for the three months ended September 30, 2024 due primarily to an increase in market interest rates.
Previous wording
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 wording
Interest Expense. Total interest expense decreased $121,000, or 3.4%, to $3.4 million for the three months ended September 30, 2025 from $3.6 million for the three months ended September 30, 2024. Interest expense on deposits increased $113,000, or 4.2%, to $2.8 million for the three months ended September 30, 2025 from $2.7 million for the three months ended September 30, 2024. The average balance of interest-bearing deposits increased $39.0 million, or 10.4%, to $414.8 million for the three months ended September 30, 2025 from $375.8 million for the three months ended September 30, 2024 primarily as a result of an increase in the average balance of time deposits. The weighted average annualized rate of interest-bearing deposits decreased to 2.72% for the three months ended September 30, 2025 from 2.88% for the three months ended September 30, 2024 primarily as a result of a decrease in market interest rates.
Previous wording
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 wording
Interest expense on borrowings decreased $234,000 to $623,000, or 27.3%, for the three months ended September 30, 2025 from $857,000 for the three months ended September 30, 2024 primarily due to a decrease in the average balance of borrowings. The average balance of borrowings decreased $19.4 million, or 26.8%, to $53.0 million for the three months ended September 30, 2025 from $72.4 million for the three months ended September 30, 2024. The weighted average annualized rate of borrowings decreased to 4.70% for the three months ended September 30, 2025 from 4.73% for the three months ended September 30, 2024.
Previous 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.
Current wording
Net Interest and Dividend Income. Net interest and dividend income increased $465,000, or 15.6%, to $3.4 million for the three months ended September 30, 2025 from $3.0 million for the three months ended September 30, 2024. This increase was due to an increase of $18.7 million, or 3.3%, in the average balance of interest-earning assets, consisting primarily of an increase in the average balance of taxable debt securities offset by a decrease in the average balance of non-taxable debt securities during the three months ended September 30, 2025, offset by a $19.8 million, or 4.4%, increase in the average balance of interest-bearing liabilities, consisting primarily of an increase in the average balance of time deposits offset by a decrease in the average balance of borrowings. Annualized net interest margin increased to 2.32% for the three months ended September 30, 2025 from 2.08% for the three months ended September 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 $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.
Current wording
Provision (Release) for Credit Losses. Based on management’s analysis of the ACL, a $3,000 provision for credit losses was recorded for the three months ended September 30, 2025, compared to a $16,000 provision for credit losses for the three months ended September 30, 2024. The provision for credit losses for the three months ended September 30, 2025 consisted of a $-0- provision for credit losses on loans and a $3,000 provision for credit losses on off-balance sheet credit exposures. The provision for credit losses for the three months ended September 30, 2024 consisted of a $20,000 provision for credit losses on loans and a $(4,000) release of credit losses for off-balance sheet credit exposures.
Previous wording
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 wording
Non-Interest Expense. Non-interest expense increased $268,000, or 6.8%, to $4.2 million for the three months ended September 30, 2025 from $3.9 million for the three months ended September 30, 2024. The increase was primarily due to an $89,000, or 4.1%, increase in salaries and employee benefits, a $73,000, or 44.5%, increase in equity compensation, a $57,000, or 16.6%, increase in data processing and a $55,000, or 67.1%, increase in deposit insurance fees. 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.
Previous wording
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 wording
Income Taxes. Income tax benefit decreased $44,000, or 6.9%, to $596,000 for the three months ended September 30, 2025 from $640,000 for the three months ended September 30, 2024. The effective tax rate was (289.3)% and (107.4)% for the three months ended September 30, 2025 and 2024, respectively. The income tax benefit and effective tax rate for the three months ended September 30, 2025 was greater than statutory federal and state rates due primarily to a $499,000 reduction of the deferred tax asset valuation allowance as of September 30, 2025 resulting from the change in accumulated other comprehensive income during the three months ended September 30, 2025. The income tax benefit and effective tax rate for the three months ended September 30, 2024 was greater than statutory federal and state rates due primarily to the reduction of $802,000 of the deferred tax asset valuation allowance as of September 30, 2024 resulting from the change in accumulated other comprehensive income during the three months ended September 30, 2024, offset by a $742,000 decrease in loss before income tax benefit.
Previous 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.
Current wording
Net deferred fee expense included in loan interest totaled $138,000 and $153,000 for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Comparison of Operating Results for the Six Months Ended June 30, 2025 and June 30, 2024
Current wording
Comparison of Operating Results for the Nine Months Ended September 30, 2025 and September 30, 2024
Previous 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.
Current wording
Net Income (Loss). Net loss was $758,000 for the nine months ended September 30, 2025, compared to net income of $895,000 for the nine months ended September 30, 2024, a decrease of $1.7 million. The decrease was due primarily to a decrease in non-interest income of $2.2 million and a $969,000 increase in non-interest expenses offset by a $1.1 million increase in net interest and dividend income after provision (release) for credit losses and an increase in income tax benefit of $437,000 during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
Previous 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.
Current wording
Interest and Dividend Income. Total interest and dividend income increased $1.2 million, or 6.1%, to $20.0 million for the nine months ended September 30, 2025 compared to $18.9 million for the nine months ended September 30, 2024. The increase was due to a $524,000 increase in interest and dividend income on investments and a $627,000 increase in interest and fees on loans.
Previous wording
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 wording
Average interest-earning assets increased $16.7 million, to $582.8 million for the nine months ended September 30, 2025 from $566.1 million for the nine months ended September 30, 2024. The weighted average annualized yield on interest earning-assets increased to 4.59% for the nine months ended September 30, 2025 from 4.45% for the nine months ended September 30, 2024 primarily due to an increase in market interest rates. The weighted average annualized yield for the loan portfolio increased to 4.66% for the nine months ended September 30, 2025 from 4.52% for the nine months ended September 30, 2024 due primarily to an increase in market interest rates. The weighted average annualized yield for all other interest-earning assets increased to 4.38% for the nine months ended September 30, 2025 from 4.25% for the nine months ended September 30, 2024 due primarily to an increase in market interest rates.
Previous 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.
Current wording
Interest Expense. Total interest expense decreased $6,000, or 0.1%, to $10.0 million for the nine months ended September 30, 2025 and 2024. Interest expense on deposits increased $1.1 million, or 15.7%, to $8.0 million for the nine months ended September 30, 2025 from $6.9 million for the nine months ended September 30, 2024. The average balance of interest-bearing deposits increased $48.2 million, or 13.6%, to $402.4 million for the nine months ended September 30, 2025 from $354.2 million for the nine months ended September 30, 2024 primarily as a result of an increase in the average balances of savings and time deposits offset by a decrease in the average balance of money market deposits. The weighted average annualized rate of interest-bearing deposits increased to 2.66% for the nine months ended September 30, 2025 from 2.61% for the nine months ended September 30, 2024 primarily as a result of an increase in market interest rates.
Previous 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.
Current wording
Interest expense on borrowings decreased $1.1 million, or 35.7%, to $2.0 million for the nine months ended September 30, 2025 from $3.1 million for the nine months ended September 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 $29.8 million, or 34.4%, to $56.7 million for the nine months ended September 30, 2025 from $86.5 million for the nine months ended September 30, 2024. The weighted average annualized rate of borrowings decreased to 4.64% for the nine months ended September 30, 2025 from 4.73% for the nine months ended September 30, 2024 due to a decrease in market interest rates.
Previous wording
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 wording
Net Interest and Dividend Income. Net interest and dividend income increased $1.2 million, or 13.0%, to $10.1 million for the nine months ended September 30, 2025 from $8.9 million for the nine months ended September 30, 2024. The increase was due to a $16.7 million, or 3.0%, increase in the average balance of interest-earning assets, consisting primarily of an increase in the average balance of taxable debt securities offset by a decrease in the average balance of non-taxable debt securities, offset by an $18.6 million, or 4.2%, 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 and borrowings during the nine months ended September 30, 2025. Annualized net interest margin increased to 2.30% for the nine months ended September 30, 2025 from 2.10% for the nine months ended September 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 $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 wording
Provision (Release) for Credit Losses. Based on management’s analysis of the ACL, a $50,000 provision for credit losses was recorded for the nine months ended September 30, 2025, compared to a $(20,000) release of credit losses for the nine months ended September 30, 2024. The provision for credit losses for the nine months ended September 30, 2025 consisted of a $30,000 provision for credit losses on loans and a $20,000 provision for credit losses on off-balance sheet credit exposures. The release of credit losses for the nine months ended September 30, 2024 consisted of a $80,000 provision for credit losses on loans and a $(100,000) release of credit losses on off-balance sheet credit exposures.
Previous wording
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 wording
Non-Interest Income. Non-interest income decreased $2.2 million, or 62.1%, to $1.4 million for the nine months ended September 30, 2025 compared to $3.6 million for the nine months ended September 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 nine months ended September 30, 2024 offset by a $215,000 increase in customer service fees and an $89,000 increase in gain on sale of loans during the nine months ended September 30, 2025.
Previous 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.
Current wording
Non-Interest Expense. Non-interest expense increased $969,000, or 8.3%, to $12.7 million for the nine months ended September 30, 2025 from $11.8 million for the nine months ended September 30, 2024. The increase was primarily due to a $293,000 increase in salaries and employee benefits, a $213,000 increase in equity compensation expense, a $353,000 increase in occupancy expense and a $188,000 increase in data processing offset by a $61,000 decrease in equipment expense and a $56,000 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
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 wording
Net deferred fee expense included in loan interest totaled $379,000 and $354,000 for the nine months ended September 30, 2025 and 2024, respectively.
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 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.
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 September 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 $111.9 million, or 23.3% 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 September 30, 2025 and December 31, 2024, we had $51.7 million and $52.3 million outstanding in advances from the FHLB, respectively, and the ability to borrow an additional $98.7 million and $94.0 million, respectively.
Previous 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.
Current wording
At September 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 $37.6 million and $-0- at September 30, 2025 and December 31, 2024, respectively. Additionally, at September 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 September 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 $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.
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 $1.1 million and $(1.2) million for the nine months ended September 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 $14.4 million and $10.1 million for the nine months ended September 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 $25.8 million and $21.7 million for the nine months ended September 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 June 30, 2025, the Company (on an unconsolidated basis) had liquid assets of $16.2 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 September 30, 2025, the Company (on an unconsolidated basis) had liquid assets of $16.1 million.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
"CECL model"), for the loss calculation of each of our loan pools utilizing a third-party software application. The WARM uses a quarterly loss rate and future expectations of loan balances to calculate an ACL. A loss rate is applied to pool balances over time.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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.