First Seacoast Bancorp, Inc.
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
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, 2026 · Filed Aug 7, 2026
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 2026-03-31; filed 2026-05-15.
0001193125-26-225434
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001193125-26-339258
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 84 previous paragraphs and 103 current paragraphs.
55 unchanged; 28 reworded; 11 added; 1 removed; 0 previous and 9 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 (11)
Current report
Net Income (Loss). Net income was $249,000 for the three months ended June 30, 2026, compared to net loss of $545,000 for the three months ended June 30, 2025, an increase of $794,000, or 145.8%. The increase was due primarily to a $256,000 increase in net interest and dividend income, a $242,000 decrease in non-interest expense and a $239,000 decrease in income tax expense during the three months ended June 30, 2026.
Current report
Interest expense on borrowings decreased $179,000 to $518,000, or 25.7%, for the three months ended June 30, 2026 from $697,000 for the three months ended June 30, 2025 primarily due to a decrease in the average balance of borrowings and a decrease in market interest rates. The average balance of borrowings decreased $12.3 million, or 20.5%, to $47.8 million for the three months ended June 30, 2026 from $60.2 million for the three months ended June 30, 2025. The weighted average annualized rate of borrowings decreased to 4.33% for the three months ended June 30, 2026 from 4.64% for the three months ended June 30, 2025.
Current report
Non-Interest Income. Non-interest income increased $4,000, or 0.89%, to $455,000 for the three months ended June 30, 2026 compared to $451,000 for the three months ended June 30, 2025.
Current report
Non-Interest Expense. Non-interest expense decreased $242,000, or 5.6%, to $4.1 million for the three months ended June 30, 2026 from $4.4 million for the three months ended June 30, 2025. The decrease was primarily due to a $97,000 decrease in professional fees and assessments, an $83,000 decrease in data processing, a $48,000 decrease in equity compensation expense and a $30,000 decrease in marketing offset by a $57,000 increase in salaries and employee benefits. The increase in salaries and employee benefits was due to normal salary increases.
Current report
Interest and Dividend Income. Total interest and dividend income decreased $269,000, or 2.0%, to $12.9 million for the six months ended June 30, 2026 compared to $13.2 million for the six months ended June 30, 2025. This decrease was due to a $410,000 decrease in interest and fees on loans offset by a $141,000 increase in interest and dividend income on investments.
Current report
Average interest-earning assets decreased $9.1 million, to $568.3 million for the six months ended June 30, 2026 from $577.4 million for the six months ended June 30, 2025. The weighted average annualized yield on interest earning-assets decreased to 4.53% for the six months ended June 30, 2026 from 4.56% for the six months ended June 30, 2025. The weighted average annualized yield for the loan portfolio increased to 4.68% for the six months ended June 30, 2026 from 4.63% for the six months ended June 30, 2025. The weighted average annualized yield for all other interest-earning assets decreased to 4.13% for the six months ended June 30, 2026 from 4.33% for the six months ended June 30, 2025 due primarily to a decrease in market interest rates.
Current report
Interest Expense. Total interest expense decreased $860,000, or 13.1%, to $5.7 million for the six months ended June 30, 2026 from $6.5 million for the six months ended June 30, 2025. Interest expense on deposits decreased $636,000, or 12.2%, to $4.6 million for the six months ended June 30, 2026 from $5.2 million for the six months ended June 30, 2025. The average balance of interest-bearing deposits decreased $9.5 million, or 2.4%, to $386.5 million for the six months ended June 30, 2026 from $396.0 million for the six months ended June 30, 2025 primarily as a result of a decrease in the average balance of savings and time deposits offset by an increase in the average balances of NOW and demand deposits. The weighted average annualized rate of interest-bearing deposits decreased to 2.36% for the six months ended June 30, 2026 from 2.62% for the six months ended June 30, 2025 primarily as a result of a decrease in market interest rates.
Current report
Interest expense on borrowings decreased $224,000, or 16.6%, to $1.1 million for the six months ended June 30, 2026 from $1.4 million for the six months ended June 30, 2025 primarily due to a decrease in the average balance of borrowings and a decrease in market interest rates. The average balance of borrowings decreased $7.8 million, or 13.3%, to $50.8 million for the six months ended June 30, 2026 from $58.6 million for the six months ended June 30, 2025. The weighted average annualized rate of borrowings decreased to 4.44% for the six months ended June 30, 2026 from 4.61% for the six months ended June 30, 2025.
Current report
Net Interest and Dividend Income. Net interest and dividend income increased $591,000, or 8.9%, to $7.2 million for the six months ended June 30, 2026 from $6.6 million for the six months ended June 30, 2025. This increase was due to a decrease in the average balance of interest-bearing liabilities, consisting primarily of a decrease in the average balances of interest-bearing deposits and borrowings offset by a decrease in the average balance of interest-earning assets, consisting primarily of a decrease in the average balance of loans offset by an increase in the average balance of taxable debt securities during the six months ended June 30, 2026. Annualized net interest margin increased to 2.53% for the six months ended June 30, 2026 from 2.29% for the six months ended June 30, 2025 due primarily to an increase in net interest income and a decrease in the average balance of interest-earning assets.
Current report
Average Balance Sheets
Current report
Rate/Volume Analysis
Removed paragraphs (1)
Previous report
Interest expense on borrowings decreased $45,000, or 6.9%, to $609,000 for the three months ended March 31, 2026 from $654,000 for the three months ended March 31, 2025. The average balance of borrowings decreased $3.2 million, or 5.6%, to $53.8 million for the three months ended March 31, 2026 from $57.0 million for the three months ended March 31, 2025. The weighted average annualized rate of borrowings decreased to 4.53% for the three months ended March 31, 2026 from 4.59% for the three months ended March 31, 2025 as a result of a decrease in market interest rates.
Reworded paragraphs (28)
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, 2026 and consolidated results of operations for the three months ended March 31, 2026 and 2025. 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, 2025, filed on March 20, 2026 with the Securities and Exchange Commission (the "SEC") and as amended by the Form 10-K/A filed with the SEC on April 30, 2026. 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, 2026 and consolidated results of operations for the three and six months ended June 30, 2026 and 2025. 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, 2025, filed on March 20, 2026 with the Securities and Exchange Commission (the "SEC") and as amended by the Form 10-K/A filed with the SEC on April 30, 2026. Certain prior year amounts have been reclassified to conform to the current year presentation.
Previous wording
Our critical accounting policies involve the calculation of the allowance for credit losses ("ACL") and the measurement of the fair value of financial instruments. A detailed description of these critical accounting policies can be found in Note 2 of the Company’s consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Current wording
Our critical accounting policies involve the calculation of the allowance for credit losses ("ACL") and the measurement of the fair value of financial instruments. A detailed description of these critical accounting policies can be found in Note 2 of the Company’s consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as amended.
Previous wording
Total Assets. Total assets were $588.8 million as of March 31, 2026, a decrease of $10.5 million, or 1.8%, compared to total assets of $599.3 million at December 31, 2025. The decrease was due primarily to a $1.1 million decrease in net loans and a $9.7 million decrease in securities available-for-sale.
Current wording
Total Assets. Total assets were $576.1 million as of June 30, 2026, a decrease of $23.2 million, or 3.9%, compared to total assets of $599.3 million at December 31, 2025. The decrease was due primarily to an $18.6 million decrease in securities available-for-sale and a $7.9 million decrease in cash and due from banks.
Previous wording
Cash and Due From Banks. Cash and due from banks decreased $626,000, or 4.7%, to $12.8 million at March 31, 2026 from $13.4 million at December 31, 2025. This decrease primarily resulted from an $11.8 million decrease in total deposits offset by a $1.1 million decrease in net loans and a $9.7 million decrease in securities available-for-sale and a $1.2 million increase in mortgagors' tax escrow during the three months ended March 31, 2026.
Current wording
Cash and Due From Banks. Cash and due from banks decreased $7.9 million, or 59.0%, to $5.5 million at June 30, 2026 from $13.4 million at December 31, 2025. This decrease primarily resulted from a $16.6 million decrease in total deposits, a $7.5 million decrease in total borrowings from the FHLB and a $2.4 million increase in net loans offset by an $18.6 million decrease in securities available-for-sale during the six months ended June 30, 2026.
Previous wording
Available-for-Sale Securities. Available-for-sale securities decreased by $9.7 million, or 6.4%, to $142.7 million at March 31, 2026 from $152.4 million at December 31, 2025. This decrease was due primarily to a $1.0 million increase in net unrealized losses within the portfolio and proceeds from maturities and principal payments totaling $8.6 million during the three months ended March 31, 2026. 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, 2026.
Current wording
Available-for-Sale Securities. Available-for-sale securities decreased by $18.6 million, or 12.2%, to $133.8 million at June 30, 2026 from $152.4 million at December 31, 2025. This decrease was primarily due to $18.4 million of proceeds from principal payments and maturities during the six months ended June 30, 2026. 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, 2026.
Previous wording
Net Loans. Net loans decreased $1.1 million, or 0.3%, to $415.0 million at March 31, 2026 from $416.0 million at December 31, 2025. During the three months ended March 31, 2026, we collected $1.5 million of loan principal payments, net of loan originations, and purchased $297,000 of consumer loans secured by manufactured housing properties. As of March 31, 2026 and December 31, 2025, the portfolio of purchased loans had an outstanding principal balance of $38.3 million and $37.0 million, respectively, and such loans were performing in accordance with their original repayment terms.
Current wording
Net Loans. Net loans increased $2.4 million, or 0.6%, to $418.4 million at June 30, 2026 from $416.0 million at December 31, 2025. During the six months ended June 30, 2026, we originated $2.1 million of loans, net of principal collections, and purchased $297,000 of consumer loans secured by manufactured housing properties. As of June 30, 2026 and December 31, 2025, the portfolio of purchased loans had outstanding principal balances of $36.4 million and $37.0 million, respectively, and were performing in accordance with their original repayment terms at each date.
Previous wording
One- to four-family residential mortgage loans decreased $2.4 million, or 0.9%, to $262.8 million at March 31, 2026 from $265.2 million at December 31, 2025. Commercial real estate mortgage loans increased $211,000, or 0.3%, to $80.8 million at March 31, 2026 from $80.6 million at December 31, 2025. Multi-family loans decreased $67,000, or 1.4%, to $4.8 million at March 31, 2026 and December 31, 2025. Commercial and industrial loans decreased $1.3 million, or 5.6%, to $21.3 million at March 31, 2026 from $22.5 million at December 31, 2025. Acquisition, development, and land loans increased $1.6 million, or 12.2%, to $14.4 million at March 31, 2026 from $12.9 million at December 31, 2025. Home equity loans and lines of credit increased $1.1 million, or 5.4%, to $21.8 million at March 31, 2026 from $20.7 million at December 31, 2025. Consumer loans decreased $222,000, or 1.7%, to $12.5 million at March 31, 2026 from $12.7 million at December 31, 2025.
Current wording
One- to four-family residential mortgage loans decreased $887,000, or 0.3%, to $264.4 million at June 30, 2026 from $265.2 million at December 31, 2025. Commercial real estate mortgage loans decreased $5.2 million, or 6.4%, to $75.4 million at June 30, 2026 from $80.6 million at December 31, 2025. Multi-family loans decreased $619,000, or 12.8%, to $4.2 million at June 30, 2026 from $4.8 million at December 31, 2025. Commercial and industrial loans increased $4.3 million, or 18.9%, to $26.8 million at June 30, 2026 from $22.5 million at December 31, 2025. Acquisition, development, and land loans increased $2.9 million, or 22.8%, to $15.8 million at June 30, 2026 from $12.9 million at December 31, 2025. Home equity loans and lines of credit increased $2.9 million, or 14.1%, to $23.6 million at June 30, 2026 from $20.7 million at December 31, 2025. Consumer loans decreased $1.0 million, or 8.1%, to $11.7 million at June 30, 2026 from $12.7 million at December 31, 2025.
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, 2026 and December 31, 2025, the aggregate amount of uninsured total deposit balances, which is the portion exceeding the $250,000 FDIC insurance limit, was estimated not to exceed $110.0 million, or 24.0% of total deposits, and $107.7 million, or 22.9% 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, 2026 and December 31, 2025, the aggregate amount of uninsured total deposit balances, which is the portion exceeding the $250,000 FDIC insurance limit, was estimated not to exceed $121.4 million, or 26.7% of total deposits, and $107.7 million, or 22.9% of total deposits, respectively.
Previous wording
For customers requiring full FDIC insurance on certificates of deposit in excess of $250,000, we offer 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, 2026 our “reciprocal” CDARS® and ICS deposits were $-0- and $11.6 million, respectively. At December 31, 2025, our “reciprocal” CDARS® and ICS deposits were $-0- and $9.1 million, respectively.
Current wording
For customers requiring full FDIC insurance on certificates of deposit in excess of $250,000, we offer 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 June 30, 2026 our “reciprocal” CDARS® and ICS deposits were $-0- and $10.0 million, respectively. At December 31, 2025, our “reciprocal” CDARS® and ICS deposits were $-0- and $9.1 million, respectively.
Previous wording
Deposits decreased $11.8 million to $459.0 million at March 31, 2026 from $470.8 million at December 31, 2025 primarily as a result of a $16.3 million decrease in retail deposits offset by a $4.5 million increase in commercial deposits. Core deposits (defined as deposits other than time deposits, including CDARS® and ICS deposits) increased $10.3 million, or 3.2%, to $329.1 million at March 31, 2026 from $318.8 million at December 31, 2025. As of March 31, 2026, savings deposits decreased $180,000, money market deposits increased $3.4 million, NOW and demand deposits increased $7.1 million and time deposits decreased $22.0 million. There were $58.7 million and $69.1 million of brokered deposits included in time deposits at March 31, 2026 and December 31, 2025, respectively, and $21.9 million of brokered deposits included in savings deposits. The purchase of brokered deposits offered a lower cost alternative to advances of similar duration from the Federal Home Loan Bank. Deposits from related parties totaled $11.0 million and $10.9 million at March 31, 2026 and December 31, 2025, respectively.
Current wording
Deposits decreased $16.6 million, or 3.5%, to $454.2 million at June 30, 2026 from $470.8 million at December 31, 2025 primarily as a result of a $26.6 million decrease in retail deposits offset by a $1.8 million increase in commercial deposits. Core deposits (defined as deposits other than time deposits) increased $6.6 million, or 2.1%, to $325.5 million at June 30, 2026 from $318.8 million at December 31, 2025. As of June 30, 2026, savings deposits decreased $2.5 million, money market deposits increased $9.4 million, NOW and demand deposit accounts decreased $199,000 and time deposits decreased $23.2 million. There were $56.9 million and $69.1 million of brokered deposits included in time deposits at June 30, 2026 and December 31, 2025, respectively, and $20.2 million of brokered deposits included in savings deposits. The purchase of brokered deposits offered a lower cost alternative to advances of similar duration from the Federal Home Loan Bank. Deposits from related parties totaled $12.7 million and $10.9 million at June 30, 2026 and December 31, 2025, respectively.
Previous wording
Borrowings. Total borrowings from the FHLB was $52.3 million at March 31, 2026 and December 31, 2025.
Current wording
Borrowings. Total borrowings from the FHLB decreased $7.5 million, or 14.3%, to $44.8 million at June 30, 2026 from $52.3 million at December 31, 2025.
Previous wording
Total Stockholders’ Equity. Total stockholders’ equity decreased $937,000, or 1.5%, to $62.6 million at March 31, 2026 from $63.5 million at December 31, 2025. This decrease was due primarily to a net loss of $508,000 for the three months ended March 31, 2026 and $715,000 other comprehensive loss 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 three months ended March 31, 2026, partially offset by the recognition of $286,000 of previously unearned compensation.
Current wording
Total Stockholders’ Equity. Total stockholders’ equity increased $263,000, or 0.4%, to $63.8 million at June 30, 2026 from $63.5 million at December 31, 2025. This increase was due to primarily to the recognition of $533,000 of previously unearned compensation offset by a net loss of $259,000 for the six months ended June 30, 2026.
Previous wording
Non-performing loans were $412,000 and $478,000 at March 31, 2026 and December 31, 2025, respectively. At March 31, 2026, non-performing loans consist of a residential mortgage loan and a consumer loan secured by a manufactured housing property. The non-performing residential mortgage loan with an outstanding balance of $295,000 was destroyed by a fire. Our outstanding residential mortgage loan balance is expected to be paid with insurance proceeds. The non-performing consumer loan secured by a manufactured housing property with an outstanding balance of $117,000 and an estimated market value of $140,000 is with a deceased borrower. The property is expected to be sold and outstanding balances paid. At March 31, 2026 and December 31, 2025, we had no foreclosed assets.
Current wording
Non-performing loans were $128,000 and $478,000 at June 30, 2026 and December 31, 2025. At June 30, 2026 and December 31, 2025, we had no foreclosed assets.
Previous wording
Interest and Dividend Income. Total interest and dividend income increased $35,000, or 0.5%, to $6.5 million for the three months ended March 31, 2026 compared to $6.4 million for the three months ended March 31, 2025. This increase was due to a $199,000 increase in interest and dividend income on investments offset by a $164,000 decrease in interest and fees on loans.
Current wording
Interest and Dividend Income. Total interest and dividend income decreased $304,000, or 4.5%, to $6.4 million for the three months ended June 30, 2026 compared to $6.7 million for the three months ended June 30, 2025. This decrease was due to a $58,000 decrease in interest and dividend income on investments and a $246,000 decrease in interest and fees on loans.
Previous wording
Average interest-earning assets increased $3.7 million, to $574.7 million for the three months ended March 31, 2026 from $571.0 million for the three months ended March 31, 2025. The weighted average annualized yield on interest earning-assets decreased to 4.50% for the three months ended March 31, 2026 from 4.51% for the three months ended March 31, 2025. The weighted average annualized yield for the loan portfolio increased to 4.66% for the three months ended March 31, 2026 from 4.57% for the three months ended March 31, 2025 due primarily to an increase in market loan interest rates. The weighted average annualized yield for all other interest-earning assets decreased to 4.09% for the three months ended March 31, 2026 from 4.28% for the three months ended March 31, 2025 due primarily to a decrease in market investment interest rates.
Current wording
Average interest-earning assets decreased $21.7 million to $562.0 million for the three months ended June 30, 2026 from $583.8 million for the three months ended June 30, 2025. The weighted average annualized yield on interest earning-assets decreased to 4.57% for the three months ended June 30, 2026 from 4.61% for the three months ended June 30, 2025. The weighted average annualized yield for the loan portfolio increased to 4.71% for the three months ended June 30, 2026 from 4.68% for the three months ended June 30, 2025. The weighted average annualized yield for all other interest-earning assets decreased to 4.17% for the three months ended June 30, 2026 from 4.38% for the three months ended June 30, 2025 due primarily to a decrease in market interest rates.
Previous wording
Interest Expense. Total interest expense decreased $300,000, or 9.2%, to $3.0 million for the three months ended March 31, 2026 from $3.3 million for the three months ended March 31, 2025. Interest expense on deposits decreased $255,000, or 9.8%, to $2.3 million for the three months ended March 31, 2026 from $2.6 million for the three months ended March 31, 2025. The average balance of interest-bearing deposits decreased $992,000, or 0.3%, to $391.4 million for the three months ended March 31, 2026 from $392.4 million for the three months ended March 31, 2025 primarily as a result of a decrease in the average balances of money market deposits, savings deposits and time deposits offset by an increase in the average balances of NOW and demand deposits. The weighted average annualized rate of interest-bearing deposits decreased to 2.39% for the three months ended March 31, 2026 from 2.65% for the three months ended March 31, 2025 primarily as a result of a decrease in market interest rates.
Current wording
Interest Expense. Total interest expense decreased $560,000, or 17.0%, to $2.7 million for the three months ended June 30, 2026 from $3.3 million for the three months ended June 30, 2025. Interest expense on deposits decreased $381,000, or 14.7%, to $2.2 million for the three months ended June 30, 2026 from $2.6 million for the three months ended June 30, 2025. The average balance of interest-bearing deposits decreased $17.9 million, or 4.5%, to $381.7 million for the three months ended June 30, 2026 from $399.6 million for the three months ended June 30, 2025 primarily as a result of a decrease in the average balance of savings and time deposits offset by an increase in the average balances of NOW and demand and money market deposits. The weighted average annualized rate of interest-bearing deposits decreased to 2.32% for the three months ended June 30, 2026 from 2.60% for the three months ended June 30, 2025 primarily as a result of a decrease in market interest rates.
Previous wording
Net Interest and Dividend Income. Net interest and dividend income increased $335,000, or 10.5%, to $3.5 million for the three months ended March 31, 2026 from $3.2 million for the three months ended March 31, 2025. This increase was due to an increase of $3.7 million, or 0.6%, 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 interest-earning loans, during the three months ended March 31, 2026 and a $4.1 million, or 0.9%, decrease in the average balance of interest-bearing liabilities, consisting of decreases in the average balances of interest-bearing deposits and borrowings. Annualized net interest margin increased to 2.45% for the three months ended March 31, 2026 from 2.23% for the three months ended March 31, 2025 due primarily to an increase in net interest income.
Current wording
Net Interest and Dividend Income. Net interest and dividend income increased $256,000, or 7.5%, to $3.7 million for the three months ended June 30, 2026 from $3.4 million for the three months ended June 30, 2025. This increase was due to a decrease of $30.3 million, or 6.6%, in the average balance of interest-bearing liabilities, consisting primarily of decreases in the average balances of interest-bearing deposits and borrowings offset by a decrease of $21.7 million, or 3.7%, in the average balance of interest-earning assets during the three months ended June 30, 2026. The decrease in the average balance of interest-earning assets consisted primarily of a decrease in the average balance of loans offset by an increase in the average balances of taxable and non-taxable debt securities. Annualized net interest margin increased to 2.62% for the three months ended June 30, 2026 from 2.35% for the three months ended June 30, 2025 due primarily to an increase in net interest income and a decrease in the average balance of interest-earning assets.
Previous wording
Release of Credit Losses. Based on management’s analysis of the ACL, an $(8,000) release of credit losses was recorded for the three months ended March 31, 2026, compared to a $-0- release of credit losses for the three months ended March 31, 2025. The release of credit losses for the three months ended March 31, 2026 consisted of $-0- provision for credit losses on loans and an $(8,000) release of credit losses on off-balance sheet credit exposures. The release of credit losses for the three months ended March 31, 2025 consisted of $30,000 provision for credit losses on loans and a $(30,000) 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 $(6,000) release of credit losses was recorded for the three months ended June 30, 2026, compared to a $47,000 provision for credit losses for the three months ended June 30, 2025. The release of credit losses for the three months ended June 30, 2026 consisted of a $-0- provision for credit losses on loans and a $(6,000) release of credit losses for off-balance sheet credit exposures. 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.
Previous wording
Income Taxes. Income tax expense increased $302,000 to an income tax expense of $273,000 for the three months ended March 31, 2026 from an income tax benefit of $(29,000) for the three months ended March 31, 2025. The effective tax rate was (116.2)% and 4.6% for the three months ended March 31, 2026 and 2025, respectively. Loss before income tax expense (benefit) was $(235,000) for the three months ended March 31, 2026 as compared to $(632,000) for the three months ended March 31, 2025. The income tax expense and effective tax rate for the three months ended March 31, 2026 was greater than statutory federal and state rates due primarily to a $392,000 increase in the deferred tax asset valuation allowance during the three months ended March 31, 2026. 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. Net deferred tax assets of $7.1 million and $7.0 million as of March 31, 2026 and 2025, 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 (benefit) expense decreased $239,000 to $(227,000) for the three months ended June 30, 2026 from $12,000 for the three months ended June 30, 2025. Income (loss) income before income tax (benefit) expense was $22,000 for the three months ended June 30, 2026 as compared to $(533,000) for the three months ended June 30, 2025. The income tax benefit for the three months ended June 30, 2026 was greater than statutory federal and state rates due primarily to a decrease in the deferred tax asset valuation allowance during the three months ended June 30, 2026. The income tax expense for the three 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 three months ended June 30, 2025. Net deferred tax assets of $6.9 million and $7.2 million as of June 30, 2026 and 2025, 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
(4) Net deferred fee expense included in loan interest totaled $(122,000) and $(141,000) for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Net deferred fee expense included in loan interest totaled $157,000 and $100,000 for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
Net Loss. Net loss was $508,000 for the three months ended March 31, 2026, compared to a net loss of $603,000 for the three months ended March 31, 2025, a decrease of $95,000, or 15.8%. The decrease was due primarily to an increase in net interest and dividend income after release of credit losses of $343,000 and an increase in total non-interest income of $61,000 offset by an increase in income tax expense of $302,000 during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Current wording
Net Loss. Net loss was $259,000 for the six months ended June 30, 2026, compared to a net loss of $1.1 million for the six months ended June 30, 2025, a decrease of $889,000. The decrease was due primarily to an increase in net interest and dividend income of $591,000 and a decrease in non-interest expenses of $235,000 during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Previous wording
Non-Interest Income. Non-interest income increased $61,000, or 17.4%, to $412,000 for the three months ended March 31, 2026 compared to $351,000 for the three months ended March 31, 2025. The increase in non-interest income during the three months ended March 31, 2026 was due primarily to an increase in customer service fees.
Current wording
Non-Interest Income. Non-interest income increased $65,000, or 8.1%, to $867,000 for the six months ended June 30, 2026 compared to $802,000 for the six months ended June 30, 2025. The increase was due primarily to a $43,000 increase in customer service fees and a $22,000 increase in loan servicing fee income during the six months ended June 30, 2026.
Previous wording
Non-Interest Expense. Non-interest expense increased $7,000, or 0.2%, to $4.2 million for the three months ended March 31, 2026 and March 31, 2025. The increase was primarily due to a $73,000 increase in salaries and employee benefits and a $57,000 increase in occupancy expense offset by a $19,000 decrease in director compensation, a $28,000 decrease in employee travel and education expenses and a $55,000 decrease in professional fees and assessment. The increase in salaries and employee benefits was due to normal salary increases.
Current wording
Non-Interest Expense. Non-interest expense decreased $235,000, or 2.8%, to $8.3 million for the six months ended June 30, 2026 from $8.5 million for the six months ended June 30, 2025. The decrease was primarily due to a $152,000 decrease in professional fees and assessments, a $79,000 decrease in data processing, a $47,000 decrease in employee travel and education expenses, a $44,000 decrease in marketing and a $43,000 decrease in equity compensation expense offset by a $130,000 increase in salaries and employee benefits and a $39,000 increase in occupancy expense. The increase in salaries and employee benefits was due to normal salary increases.
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, 2026 and December 31, 2025, 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 $110.0 million, or 24.0% of total deposits, and $107.7 million, or 22.9% 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, 2026 and December 31, 2025, we had $52.3 million outstanding in advances from the FHLB and the ability to borrow an additional $94.4 million and $96.6 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, 2026 and December 31, 2025, 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 $121.4 million, or 26.7% of total deposits, and $107.7 million, or 22.9% of total deposits, respectively. Our primary sources of funds are deposits, principal and interest payments on loans and securities 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, 2026 and December 31, 2025, we had $44.8 million and $52.3 million outstanding in advances from the FHLB, respectively, and the ability to borrow an additional $98.2 million and $96.6 million, respectively.
Previous wording
At March 31, 2026 and December 31, 2025, 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 $37.3 million and $34.1 million at March 31, 2026 and December 31, 2025, respectively. Additionally, at March 31, 2026 and December 31, 2025, the Bank had a $2.0 million unsecured Fed Funds borrowing line of credit with a correspondent bank. At March 31, 2026 and December 31, 2025, there were no outstanding balances under any of these additional credit facilities.
Current wording
At June 30, 2026 and December 31, 2025, 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 $36.7 million and $34.1 million at June 30, 2026 and December 31, 2025, respectively. Additionally, at June 30, 2026 and December 31, 2025, the Bank had a $2.0 million unsecured Fed Funds borrowing line of credit with a correspondent bank. At June 30, 2026 and December 31, 2025, 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 by operating activities was $547,000 and $573,000 for the three months ended March 31, 2026 and 2025, respectively. Net cash provided (used) by investing activities, which consists primarily of loan principal collections, net of disbursements for loan originations, and proceeds from the sale, maturity and principal payments on securities available-for-sale, net of securities available-for-sale purchases, was $9.4 million and $(13.3) million for the three months ended March 31, 2026 and 2025, respectively. Net cash (used) provided by financing activities, consisting primarily of activity in deposit accounts and FHLB advances offset by treasury stock purchases, was $(10.6) million and $11.8 million for the three months ended March 31, 2026 and 2025, 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 by operating activities was $332,000 and $422,000 for the six months ended June 30, 2026 and 2025, respectively. Net cash provided (used) by investing activities, which consists primarily of disbursements for loan originations and purchases and the purchase of securities available-for-sale, offset by principal collections on loans and proceeds from the maturity and principal payments on securities available-for-sale, was $16.1 million and ($24.7) million for the six months ended June 30, 2026 and 2025, respectively. Net cash (used) provided by financing activities, consisting primarily of activity in deposit accounts and FHLB advances offset by treasury stock purchases, was $(24.3) million and $23.9 million for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
We are committed to maintaining a strong liquidity position. We monitor our liquidity position daily. We anticipate that we will have sufficient funds to meet our current funding commitments. We have no material commitments for capital expenditures as of March 31, 2026. Our current strategy is to increase core deposits and utilize FHLB advances, as well as brokered deposits, to fund loan growth.
Current wording
We are committed to maintaining a strong liquidity position. We monitor our liquidity position daily. We anticipate that we will have sufficient funds to meet our current funding commitments. We have no material commitments for capital expenditures as of June 30, 2026. Our current strategy is to increase core deposits and utilize FHLB advances to fund loan growth.
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, 2026, 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, 2026, the Company (on an unconsolidated basis) had liquid assets of $16.4 million.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
Comparison of Operating Results for the Six Months Ended June 30, 2026 and June 30, 2025
Current report — wording carried from elsewhere
(Release) Provision for Credit Losses. Based on management’s analysis of the ACL, a $(14,000) release of credit losses was recorded for the six months ended June 30, 2026, compared to a $47,000 provision for credit losses for the six months ended June 30, 2025. The release of credit losses for the six months ended June 30, 2026 consisted of a $-0- provision for credit losses on loans and a $(14,000) release of credit losses for off-balance sheet credit exposures. 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.
Current report — wording carried from elsewhere
Income Taxes. Income tax expense increased $63,000 to an expense of $46,000 for the six months ended June 30, 2026 from a benefit of $(17,000) for the six months ended June 30, 2025. The effective tax rate was 21.6% and (1.5)% for the six months ended June 30, 2026 and 2025, respectively. Loss before income tax expense (benefit) was $213,000 and $1.2 million for the six months ended June 30, 2026 and 2025, respectively. The income tax expense for the six months ended June 30, 2026 was greater 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, 2026. 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 $6.9 million and $7.2 million as of June 30, 2026 and 2025, 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
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 $280,000 and $242,000 for the six months ended June 30, 2026 and 2025, 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.