10q10k10q10k.net

What changed in First Seacoast Bancorp, Inc.'s 10-K — 2023 vs 2024

vs

Paragraph-level year-over-year comparison of First Seacoast Bancorp, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+272 added−298 removedSource: 10-K (2025-03-21) vs 10-K (2024-03-29)

Top changes in First Seacoast Bancorp, Inc.'s 2024 10-K

272 paragraphs added · 298 removed · 238 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

131 edited+12 added−24 removed235 unchanged
Biggest changeAt or for the Years Ended December 31, 2023 2022 (Dollars in thousands) Allowance at beginning of the year $ 3,581 $ 3,590 Provision for credit losses on loans 105 — Impact of ASC 326 Adoption (295 ) — Charge-offs: One- to four-family residential real estate — — Commercial real estate — — Acquisition, development and land — — Commercial and industrial — — Home equity loans and lines of credit — — Multi-family — — Consumer (4 ) (14 ) Total charge-offs $ (4 ) $ (14 ) Recoveries: One- to four-family residential real estate $ — $ — Commercial real estate — — Acquisition, development and land — — Commercial and industrial — 4 Home equity loans and lines of credit — — Multi-family — — Consumer 3 1 Total recoveries $ 3 $ 5 Net charge-offs $ (1 ) $ (9 ) Allowance at end of year $ 3,390 $ 3,581 Net recoveries (charge-offs) as a percent of average loans outstanding during the year: One- to four-family residential real estate — — Commercial real estate — — Acquisition, development and land — — Commercial and industrial — 0.02 % Home equity loans and lines of credit — — Multi-family — — Consumer — (0.22 )% Allowance as a percent of total loans outstanding at year end 0.79 % 0.89 % Total non-accrual loans as a percent of total loans at year end 0.03 % 0.02 % Allowance as a percent of total non-accrual loans at year end 2,404.26 % 4,023.60 % Net recoveries (charge-offs) as a percent of average loans outstanding during the year — — 16 Allocation of Allowance for Credit Losses on Loans.
Biggest changeAt or for the Years Ended December 31, 2024 2023 (Dollars in thousands) Allowance at beginning of year $ 3,390 $ 3,581 Provision for credit losses on loans 120 105 Impact of ASC 326 Adoption — (295 ) Charge-offs: One- to four-family residential real estate — — Commercial real estate — — Acquisition, development and land — — Commercial and industrial — — Home equity loans and lines of credit — — Multi-family — — Consumer (27 ) (4 ) Total charge-offs $ (27 ) $ (4 ) Recoveries: One- to four-family residential real estate $ — $ — Commercial real estate — — Acquisition, development and land — — Commercial and industrial — — Home equity loans and lines of credit — — Multi-family — — Consumer 3 3 Total recoveries $ 3 $ 3 Net charge-offs $ (24 ) $ (1 ) Allowance at end of year $ 3,486 $ 3,390 Allowance as a percent of total loans outstanding at year end 0.79 % 0.79 % Total non-accrual loans as a percent of total loans at year end — 0.03 % Allowance as a percent of total non-accrual loans at year end — 2,404.26 % Net charge-offs as a percent of average consumer loans outstanding during the year -0.09 % — Allocation of Allowance for Credit Losses on Loans.
The foreclosure process generally would begin 10 when a loan becomes 120 days delinquent. We do not pursue multiple collections processes, such as considering modifications or workouts, while proceeding with foreclosure. When a commercial loan or commercial real estate loan becomes 10 days past due, we contact the customer by mailing a late notice.
The foreclosure process generally would begin when a loan becomes 120 days delinquent. We do not pursue multiple collections processes, such as considering modifications or workouts, while proceeding with foreclosure. When a commercial loan or commercial real estate loan becomes 10 days past due, we contact the customer by mailing a late notice.
Loans are reviewed on a regular basis. Management determines that a loan is non-performing when it is probable at least a portion of the loan will not be collected in accordance with the original terms due to a deterioration in the financial condition of the borrower or the value of the underlying collateral if the loan is collateral-dependent.
Loans are reviewed on a regular basis. Management determines that a loan is non-performing when it is probable that at least a portion of the loan will not be collected in accordance with the original terms due to a deterioration in the financial condition of the borrower or the value of the underlying collateral if the loan is collateral-dependent.
Qualified Thrift Lender Test. As a federal savings association, First Seacoast Bank must satisfy the qualified thrift lender, or “QTL,” test. Under the QTL test, First Seacoast Bank must maintain at least 65% of its “portfolio assets” in “qualified thrift investments” (primarily residential mortgages and related investments, including mortgage-backed securities) in at least nine months of every 12-month period.
As a federal savings association, First Seacoast Bank must satisfy the qualified thrift lender, or “QTL,” test. Under the QTL test, First Seacoast Bank must maintain at least 65% of its “portfolio assets” in “qualified thrift investments” (primarily residential mortgages and related investments, including mortgage-backed securities) in at least nine months of every 12-month period.
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.
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, the Bank receives 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. The Bank considers these deposits to be “core” in nature.
Similarly to the certificates of deposit’s discussed above, the Bank receives 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. The Bank considers these deposits to be “core” in nature.
The operations of First Seacoast Bank also are subject to the: • Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; • Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services; 25 • Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check; • The USA PATRIOT Act, which requires savings associations to, among other things, establish broadened anti-money laundering compliance programs and due diligence policies and controls to ensure the detection and reporting of money laundering.
The operations of First Seacoast Bank also are subject to the: • Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; • Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services; • Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check; • The USA PATRIOT Act, which requires savings associations to, among other things, establish broadened anti-money laundering compliance programs and due diligence policies and controls to ensure the detection and reporting of money laundering.
The Company continues to consider qualitative factors in determining and arriving at an ACL at each reporting period such as: (i) actual or expected changes in economic trends and conditions, (ii) changes in the value of underlying collateral for loans, (iii) changes to lending policies, underwriting standards and/or management personnel performing such functions, (iv) delinquency and other credit quality trends, (v) credit risk concentrations, if any, (vi) changes to the nature of the Company's business impacting the loan portfolio, (vii) and other external factors, that may include, but are not limited to, results of internal loan reviews and examinations by bank regulatory agencies.
The Company continues to consider qualitative factors in determining and arriving at an ACL at each reporting period such as: (i) actual or expected 14 changes in economic trends and conditions, (ii) changes in the value of underlying collateral for loans, (iii) changes to lending policies, underwriting standards and/or management personnel performing such functions, (iv) delinquency and other credit quality trends, (v) credit risk concentrations, if any, (vi) changes to the nature of the Company's business impacting the loan portfolio, (vii) and other external factors, that may include, but are not limited to, results of internal loan reviews and examinations by bank regulatory agencies.
Alternating telephone attempts and additional letters continue until a loan becomes 90 days past due, at which point we would place the loan on non-accrual status and generally refer the loan for foreclosure proceedings, unless management determines that it is in the best interest of First Seacoast Bank to work further with the borrower to arrange a workout plan.
Alternating telephone attempts and additional 10 letters continue until a loan becomes 90 days past due, at which point we would place the loan on non-accrual status and generally refer the loan for foreclosure proceedings, unless management determines that it is in the best interest of First Seacoast Bank to work further with the borrower to arrange a workout plan.
The Federal Reserve Board is prohibited from approving any acquisition that would result in a multiple savings and loan holding company controlling savings institutions in more than one state, subject to two exceptions: • the approval of interstate supervisory acquisitions by savings and loan holding companies; and • the acquisition of a savings institution in another state if the laws of the state of the target savings institution specifically permit such acquisition.
The Federal Reserve Board is prohibited from approving any acquisition that would result in a savings and loan holding company controlling savings institutions in more than one state, subject to two exceptions: • the approval of interstate supervisory acquisitions by savings and loan holding companies; and • the acquisition of a savings institution in another state if the laws of the state of the target savings institution specifically permit such acquisition.
We sell selected conforming, 15-year and 30-year fixed-rate one- to four-family residential real estate loans that we originate, on a servicing-retained basis, when we are able 9 to, and strategically retain non-eligible fixed-rate and adjustable-rate one- to four-family residential real estate loans in order to manage the duration and time to repricing of our one- to four-family residential loan portfolio.
We sell selected conforming, 15-year and 30-year fixed-rate one- to four-family residential real estate loans that we originate, on a servicing-retained basis, when we are able to, and strategically retain non-eligible fixed-rate and adjustable-rate one- to four-family residential real estate loans in order to manage the duration and time to repricing of our one- to four-family residential loan portfolio.
As noted above and within previous accounting guidance used for the "incurred loss" model, ASU 2016-13 requires companies to consider various qualitative factors that may impact expected credit losses. The Company made relevant adjustments to its qualitative factors in the measurement of its ACL at December 31, 2023.
As noted above and within previous accounting guidance used for the "incurred loss" model, ASU 2016-13 requires companies to consider various qualitative factors that may impact expected credit losses. The Company made relevant adjustments to its qualitative factors in the measurement of its ACL at December 31, 2024 and 2023.
We believe that deposits are a stable source of funds, but our ability to attract and maintain deposits at favorable rates will be affected by market conditions, including competition and prevailing interest rates. The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated.
We believe that deposits are a stable source of funds, but our ability to attract and maintain deposits at favorable rates will be affected by market conditions, including competition and prevailing interest rates. The following tables set forth the distribution of total average deposit accounts, by account type, at the dates indicated.
A multiple savings and loan holding company is generally limited to activities permissible for bank holding companies under Section 4(c)(8) of the Bank Holding Company Act, subject to regulatory approval, and certain additional activities authorized by federal regulations. First Seacoast Bancorp, Inc. has not elected financial holding company status.
A multiple savings and loan holding company is generally limited to activities permissible for bank holding companies under Section 4(c)(8) of the Bank Holding Company Act, subject to regulatory approval, and certain 25 additional activities authorized by federal regulations. First Seacoast Bancorp, Inc. has not elected financial holding company status.
We consider our balance sheet, as well as market conditions, on an ongoing basis in making decisions as to whether to hold one- to four-family residential real estate loans we originate in our portfolio for investment or to sell such loans to investors, based on profitability and risk management considerations.
We consider our balance sheet, as well as market conditions, on an ongoing basis in making decisions as to whether to hold one- to four-family residential real estate loans we originate in our portfolio for investment or to sell such loans to 9 investors, based on profitability and risk management considerations.
In periods of greater volatility and uncertainty, 14 such as the current interest rate environment, management will likely use a shorter forecast period, whereas when markets, economies, interest rate environment, political matters, and other factors are considered to be more stable and certain, a longer forecast period may be used.
In periods of greater volatility and uncertainty, such as the current interest rate environment, management will likely use a shorter forecast period, whereas when markets, economies, interest rate environment, political matters, and other factors are considered to be more stable and certain, a longer forecast period may be used.
While scheduled loan payments and income on earning assets are relatively stable sources of funds, deposit inflows and outflows can vary widely and are influenced by prevailing interest rates, market conditions and levels of competition. 18 Deposits. Our deposits are generated primarily from residents within our primary market area.
While scheduled loan payments and income on earning assets are relatively stable sources of funds, deposit inflows and outflows can vary widely and are influenced by prevailing interest rates, market conditions and levels of competition. Deposits. Our deposits are generated primarily from residents within our primary market area.
First Seacoast Bank received an “Outstanding” rating in its most recent Community Reinvestment Act federal evaluation. 23 Transactions with Related Parties. A federal savings association’s authority to engage in transactions with its affiliates is limited by Sections 23A and 23B of the Federal Reserve Act and federal regulation.
First Seacoast Bank received an “Outstanding” rating in its most recent Community Reinvestment Act federal evaluation. Transactions with Related Parties. A federal savings association’s authority to engage in transactions with its affiliates is limited by Sections 23A and 23B of the Federal Reserve Act and federal regulation.
By law, all savings and loan holding companies must serve as a source of financial and managerial strength to their subsidiary depository institutions. 26 Dividends and Stock Repurchases. The Federal Reserve Board has issued a policy statement regarding the payment of dividends and other capital distributions by holding companies.
By law, all savings and loan holding companies must serve as a source of financial and managerial strength to their subsidiary depository institutions. Dividends and Stock Repurchases. The Federal Reserve Board has issued a policy statement regarding the payment of dividends and other capital distributions by holding companies.
FSB Service Corporation, Inc., which is inactive, is the sole and wholly-owned subsidiary of First Seacoast Bank. 20 Regulation and Supervision General As a federal savings bank, First Seacoast Bank is subject to examination, supervision and regulation, primarily by the Office of the Comptroller of the Currency, and, secondarily, by the FDIC as deposits insurer.
FSB Service Corporation, Inc., which is inactive, is the sole and wholly-owned subsidiary of First Seacoast Bank. Regulation and Supervision General As a federal savings bank, First Seacoast Bank is subject to examination, supervision and regulation, primarily by the Office of the Comptroller of the Currency, and, secondarily, by the FDIC as deposits insurer.
We do not currently know of any practice, condition or violation that may lead to termination of our deposit insurance. 24 Federal Home Loan Bank System. First Seacoast Bank is a member of the Federal Home Loan Bank System, which consists of 11 regional Federal Home Loan Banks.
We do not currently know of any practice, condition or violation that may lead to termination of our deposit insurance. Federal Home Loan Bank System. First Seacoast Bank is a member of the Federal Home Loan Bank System, which consists of 11 regional Federal Home Loan Banks.
First Seacoast Bank’s relationship with its depositors and borrowers is also regulated to a great extent by federal law and, to a lesser extent, state law, including in matters concerning the ownership of deposit accounts and the form and content of First Seacoast Bank’s loan documents.
First Seacoast Bank’s relationship with its depositors and borrowers is also regulated to a 20 great extent by federal law and, to a lesser extent, state law, including in matters concerning the ownership of deposit accounts and the form and content of First Seacoast Bank’s loan documents.
As a savings and loan holding company, First Seacoast Bancorp, Inc. is subject to examination and supervision by, and is required to file certain reports with, the Federal Reserve Board. First Seacoast Bancorp, Inc. is also be subject to the rules and regulations of the SEC under the federal securities laws.
As a savings and loan holding company, First Seacoast Bancorp, Inc. is subject to examination and supervision by, and is required to file certain reports with, the Federal Reserve Board. First Seacoast Bancorp, Inc. is also subject to the rules and regulations of the SEC under the federal securities laws.
Our board of directors is responsible for adopting and reviewing annually our investment policy. Our Asset/Liability Management Committee (“ALCO”) is responsible for implementing our investment policy. Authority to make investments under the approved investment policy guidelines is delegated to our President and Chief Executive Officer, Chief Financial Officer and Finance Officer.
Our board of directors is responsible for adopting and reviewing annually our investment policy. Our Asset/Liability Management Committee (“ALCO”) is responsible for implementing our investment policy. Authority to make investments under the approved investment policy guidelines is delegated to our President and Chief Executive Officer and Chief Financial Officer.
At December 31, 2023, we do not intend to sell our available-for-sale securities and it was unlikely that we would have had to sell them before recovery of their amortized cost, which may be at maturity, and we believed that the unrealized losses were primarily due to market interest rate fluctuations and not changes in credit quality. U.S.
At December 31, 2024, we do not intend to sell our available-for-sale securities and it was unlikely that we would have had to sell them before recovery of their amortized cost, which may be at maturity, and we believed that the unrealized losses were primarily due to market interest rate fluctuations and not changes in credit quality. U.S.
On August 17, 2021, the Bank entered into a definitive agreement with an investment advisory and wealth management firm (the “seller”) to purchase certain of its client accounts and client relationships for a final adjusted purchase price of $324,000 (included in other assets at December 31, 2023 and 2022, net of amortization), of which $172,000 was paid at closing.
On August 17, 2021, the Bank entered into a definitive agreement with an investment advisory and wealth management firm (the “seller”) to purchase certain of its client accounts and client relationships for a final adjusted purchase price of $324,000 (included in other assets at December 31, 2024 and 2023, net of amortization), of which $172,000 was paid at closing.
The following tables set forth the contractual maturities of our total loan portfolio at December 31, 2023. Demand loans, loans having no stated repayment schedule or maturity and overdraft loans are reported as being due in one year or less. The table presents contractual maturities and does not reflect repricing or the effect of prepayments. Actual maturities may differ.
The following tables set forth the contractual maturities of our total loan portfolio at December 31, 2024. Demand loans, loans having no stated repayment schedule or maturity and overdraft loans are reported as being due in one year or less. The table presents contractual maturities and does not reflect repricing or the effect of prepayments. Actual maturities may differ.
The following table sets forth the ACL and ALL allocated by loan category, the total loan balances by category and the percent of loans in each category to total loans at the dates indicated.
The following table sets forth the ACL allocated by loan category, the total loan balances by category and the percent of loans in each category to total loans at the dates indicated.
As such, it is grouped with any other capital losses for the year to which it is carried and is used to offset any capital gains. Any loss remaining after the five-year carryover period that has not been deducted is no longer deductible. At December 31, 2023, the Company had no capital loss carryovers. Corporate Dividends.
As such, it is grouped with any other capital losses for the year to which it is carried and is used to offset any capital gains. Any loss remaining after the five-year carryover period that has not been deducted is no longer deductible. At December 31, 2024, the Company had no capital loss carryovers. Corporate Dividends.
Our adjustable-rate mortgage loans have initial repricing terms of one, three or five years. Following the initial repricing term, such loans adjust annually for the balance of the loan term. Adjustable-rate mortgage loans are indexed to the One-Year U.S. Treasury Constant Maturity rate, plus a margin.
The majority of our adjustable-rate mortgage loans have initial repricing terms of one, three, five or seven years. Following the initial repricing term, such loans adjust annually for the balance of the loan term. Adjustable-rate mortgage loans are indexed to the One-Year U.S. Treasury Constant Maturity rate, plus a margin.
Senior credit facilities typically range in size from $25-$250 million, primarily 8 secured by substantially all of the assets of the business. These loans generally have five to seven-year terms and variable interest rates. At December 31, 2023 and 2022, we had outstanding participation interests in these commercial and industrial loans totaling $2.0 million and $-0-, respectively.
Senior credit 8 facilities typically range in size from $25-$250 million, primarily secured by substantially all of the assets of the business. These loans generally have five to seven-year terms and variable interest rates. At December 31, 2024 and 2023, we had outstanding participation interests in these commercial and industrial loans totaling $4.0 million and $2.0 million, respectively.
Government-Sponsored Enterprises Obligations. At December 31, 2023, we had government-sponsored enterprise obligations issued by various U.S. Government agencies totaling $1.4 million, which constituted 1.1% of our securities portfolio. The Company invests primarily in Federal Farm Credit Bank and Federal National Mortgage Association ("FNMA" or "Fannie Mae"). U.S. Government Agency Small Business Administration Pools.
Government-Sponsored Enterprises Obligations. At December 31, 2024, we had government-sponsored enterprise obligations issued by various U.S. Government agencies totaling $1.4 million, which constituted 1.2% of our securities portfolio. The Company invests primarily in Federal Farm Credit Bank and Federal National Mortgage Association ("FNMA" or "Fannie Mae"). U.S. Government Agency Small Business Administration Pools.
As of December 31, 2023, First Seacoast Bank complied with the loans-to-one borrower limitations. Standards for Safety and Soundness. Federal law requires each federal banking agency to prescribe certain standards for all insured depository institutions.
As of December 31, 2024, First Seacoast Bank complied with the loans-to-one borrower limitations. Standards for Safety and Soundness. Federal law requires each federal banking agency to prescribe certain standards for all insured depository institutions.
Under CECL, the ACL may increase or decrease period to period based on many factors, including, but not limited to: (i) macroeconomic forecasts and conditions; (ii) forecast period and reversion speed; (iii) prepayment speed assumption; (iv) loan portfolio volumes and changes in mix; (v) credit quality; and (vi) various qualitative factors outlined in ASU 2016-13.
Under ASC 326, the ACL may increase or decrease period to period based on many factors, including, but not limited to: (i) macroeconomic forecasts and conditions; (ii) forecast period and reversion speed; (iii) prepayment speed assumption; (iv) loan portfolio volumes and changes in mix; (v) credit quality; and (vi) various qualitative factors outlined in ASU 2016-13.
The Dodd-Frank Act made noncompliance with the QTL test subject to agency enforcement action for a violation of law. At December 31, 2023, First Seacoast Bank satisfied the QTL test. Capital Distributions. Federal regulations govern capital distributions by a federal savings association, which include cash dividends, stock repurchases and other transactions charged to the savings association’s capital account.
The Dodd-Frank Act made noncompliance with the QTL test subject to agency enforcement action for a violation of law. At December 31, 2024, First Seacoast Bank satisfied the QTL test. 22 Capital Distributions. Federal regulations govern capital distributions by a federal savings association, which include cash dividends, stock repurchases and other transactions charged to the savings association’s capital account.
Any material increase in the ACL may adversely affect our financial condition and results of operations. See Note 6 to the notes to our consolidated financial statements included in this annual report for a complete discussion of our ACL.
Any material increase in the ACL may adversely affect our financial condition and results of operations. See Note 5 to the notes to our consolidated financial statements included in this annual report for a complete discussion of our ACL.
As of December 31, 2023, First Seacoast Bank complied with this requirement. Dodd-Frank Act The Dodd-Frank Act created the Consumer Financial Protection Bureau, which has broad powers to supervise and enforce consumer protection laws.
As of December 31, 2024, First Seacoast Bank complied with this requirement. Dodd-Frank Act The Dodd-Frank Act created the Consumer Financial Protection Bureau, which has broad powers to supervise and enforce consumer protection laws.
Pursuant to 2020 federal legislation, the CBLR was temporarily lowered to 8%, transitioning back to 9% by year-ended 2021. Throughout 2023, the Bank did not make an election to use the CBLR. At December 31, 2023, First Seacoast Bank’s capital exceeded all applicable requirements including the applicable capital conservation buffer. Loans-to-One Borrower.
Pursuant to 2020 federal legislation, the CBLR was temporarily lowered to 8%, transitioning back to 9% by year-ended 2021. Throughout 2024, the Bank did not make an 21 election to use the CBLR. At December 31, 2024, First Seacoast Bank’s capital exceeded all applicable requirements including the applicable capital conservation buffer. Loans-to-One Borrower.
Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value, less estimated costs to sell. At December 31, 2023 and 2022, we had no foreclosed assets. Classified Assets .
Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value, less estimated costs to sell. At December 31, 2024 and 2023, we had no foreclosed assets. Classified Assets .
The Federal Reserve Bank of Boston did not object to our repurchase plan. Acquisition. Under the Federal Change in Bank Control Act, a notice must be submitted to the Federal Reserve Board if any person (including a company), or group acting in concert, seeks to acquire direct or indirect “control” of a savings and loan holding company.
The Federal Reserve Bank of Boston did not object to our stock repurchase plans. Acquisition. Under the Federal Change in Bank Control Act, a notice must be submitted to the Federal Reserve Board if any person (including a company), or group acting in concert, seeks to acquire direct or indirect “control” of a savings and loan holding company.
For additional information, see Note 16 of the notes to our consolidated financial statements of this annual report. 4 Loan Portfolio Composition. The following table sets forth the composition of the loan portfolio at the dates indicated.
For additional information, see Note 15 of the notes to our consolidated financial statements of this annual report. 4 Loan Portfolio Composition. The following table sets forth the composition of the loan portfolio at the dates indicated.
Upon adoption of CECL, the Company made the following elections regarding accrued interest receivable: (i) present accrued interest receivable balances separately on the balance sheet on the consolidated statements of condition; (ii) exclude accrued interest from the measurement of the ACL, including investments and loans; and (iii) continue to write-off accrued interest receivable by reversing interest income.
Upon adoption of ASC 326, the Company made the following elections regarding accrued interest receivable: (i) present accrued interest receivable balances separately on the balance sheet on the consolidated statements of condition; (ii) exclude accrued interest from the measurement of the ACL, including investments and loans; and (iii) continue to write-off accrued interest receivable by reversing interest income.
At December 31, 2023, we had corporate debt totaling $0.5 million, which constituted 0.4% of our securities portfolio. This fixed-to-floating corporate note was issued by a minority-led Community Development Financial Institution. Corporate Subordinated Debt. At December 31, 2023, we had corporate subordinated debt totaling $9.0 million, which constituted 7.4% of our securities portfolio.
At December 31, 2024, we had corporate debt totaling $0.5 million, which constituted 0.4% of our securities portfolio. This fixed-to-floating corporate note was issued by a minority-led Community Development Financial Institution. Corporate Subordinated Debt. At December 31, 2024, we had corporate subordinated debt totaling $7.9 million, which constituted 6.5% of our securities portfolio.
A financial institution may carry New Hampshire net operating losses forward for ten years but is limited to 80% of each subsequent year's taxable income. At December 31, 2023, the Bank had $8.4 million of New Hampshire net operating loss carryovers. ITEM 1A. Ri sk Factors Not applicable, as the Company is a “smaller reporting company.” ITEM 1B.
A financial institution may carry New Hampshire net operating losses forward for ten years but is limited to 80% of each subsequent year's taxable income. At December 31, 2024, the Bank had $9.4 million of New Hampshire net operating loss carryovers. ITEM 1A. Ri sk Factors Not applicable, as the Company is a “smaller reporting company.” ITEM 1B.
At December 31, 2023, our “reciprocal” CDARS® and ICS deposits were $-0- and $1.1 million, respectively. The FDIC charges insured depository institutions premiums to maintain the Deposit Insurance Fund. Assessments for most institutions are based on financial measures and supervisory ratings derived from statistical modeling estimating the probability of failure within three years.
At December 31, 2024, our “reciprocal” CDARS® and ICS deposits were $-0- and $6.0 million, respectively. The FDIC charges insured depository institutions premiums to maintain the Deposit Insurance Fund. Assessments for most institutions are based on financial measures and supervisory ratings derived from statistical modeling estimating the probability of failure within three years.
At December 31, 2023, the average loan balance outstanding in the acquisition, development and land loan portfolio was $388,000. We originate loans to finance the construction or rehabilitation of owner-occupied one- to four-family residential properties to the prospective homeowners primarily located in our market area. Upon completion of construction, such loans convert to permanent mortgage loans.
At December 31, 2024, the average loan balance outstanding in the acquisition, development and land loan portfolio was $482,000. We originate loans to finance the construction or rehabilitation of owner-occupied one- to four-family residential properties to the prospective homeowners primarily located in our market area. Upon completion of construction, such loans convert to permanent mortgage loans.
At December 31, 2023, our largest individual residential construction loan outstanding was $774,000 and it was performing in accordance with its original repayment terms. We also originate loans to finance the construction of commercial properties, primarily owner-occupied properties located in our market area. Upon completion of construction, such loans generally convert to permanent commercial mortgage loans.
At December 31, 2024, our largest individual residential construction loan outstanding was $651,000 and it was performing in accordance with its original repayment terms. We also originate loans to finance the construction of commercial properties, primarily owner-occupied properties located in our market area. Upon completion of construction, such loans generally convert to permanent commercial mortgage loans.
For the years ended December 31, 2023 and 2022, we sold $417,000 and $637,000, respectively, of our one- to four-family residential real estate loans. In addition to purchasing consumer loans secured by manufactured housing properties, as discussed above under “Consumer Loans,” we purchase one- to four-family jumbo residential real estate loans to supplement our own origination efforts.
For the years ended December 31, 2024 and 2023, we sold $893,000 and $417,000, respectively, of our one- to four-family residential real estate loans. In addition to purchasing consumer loans secured by manufactured housing properties, as discussed above under “Consumer Loans,” we purchase one- to four-family jumbo residential real estate loans to supplement our own origination efforts.
A financial institution may carry net operating losses forward indefinitely but is limited to 80% of each subsequent year's taxable income. At December 31, 2023, the Company had $9.8 million of net operating loss carryovers. Charitable Contribution Carryovers.
A financial institution may carry net operating losses forward indefinitely but is limited to 80% of each subsequent year's taxable income. At December 31, 2024, the Company had $8.8 million of net operating loss carryovers. Charitable Contribution Carryovers.
At December 31, 2023, based on the 15% limitation, our loans-to-one-borrower limit was approximately $8.4 million. At December 31, 2023, our largest loan relationship with one borrower was for $6.7 million. These loans are secured primarily by commercial real estate which were performing in accordance with their original repayment terms.
At December 31, 2024, based on the 15% limitation, our loans-to-one-borrower limit was approximately $8.3 million. At December 31, 2024, our largest loan relationship with one borrower was for $7.6 million. These loans are secured primarily by commercial real estate which were performing in accordance with their original repayment terms.
Adjustable Rate Loans. The following table sets forth our fixed- and adjustable-rate loans at December 31, 2023 that are contractually due after December 31, 2024.
Adjustable Rate Loans. The following table sets forth our fixed- and adjustable-rate loans at December 31, 2024 that are contractually due after December 31, 2025.
As noted above, during 2023, we also purchased $2.0 million of participation interests in two commercial and industrial loans through our membership in a national community bank loan program. Loans are typically provided to middle market businesses with approximately $10-$75 million in EBITDA.
As noted above, during 2024 and 2023, we also purchased $2.7 million and $2.0 million, respectively, of participation interests in commercial and industrial loans through our membership in a national community bank loan program. Loans are typically provided to middle market businesses with approximately $10-$75 million in EBITDA.
The significant key assumptions used with the ACL calculation at December 31, 2023 using the CECL methodology, included: • Macroeconomic factors (loss drivers) : Monitoring and assessing local and national unemployment, changes in national GDP and other macroeconomic factors which may be the most predictive indicator of losses within the loan portfolio.
The significant key assumptions used with the ACL calculation at December 31, 2024 and 2023 using the ASC 326 methodology, included: • Macroeconomic factors (loss drivers) : Monitoring and assessing local and national unemployment, changes in national GDP and other macroeconomic factors which may be the most predictive indicator of losses within the loan portfolio.
At December 31, 2023, our largest land loan had an outstanding balance of $563,000, and it was performing in accordance with its original repayment terms. Land development loans generally involve greater credit risk than long-term financing on developed real estate.
At December 31, 2024, our largest land loan had an outstanding balance of $538,000, and it was performing in accordance with its original repayment terms. Land development loans generally involve greater credit risk than long-term financing on developed real estate.
A financial institution’s deduction for charitable contributions is limited to 10% of its federal taxable income with the excess carried forward to the succeeding five taxable years. Any contributions remaining after the five-year carryover period that has not been deducted is no longer deductible. At December 31, 2023, the Company had $654,000 of charitable contribution carryovers. 27 Capital Loss Carryovers.
A financial institution’s deduction for charitable contributions is limited to 10% of its federal taxable income with the excess carried forward to the succeeding five taxable years. Any contributions remaining after the five-year carryover period that has not been deducted is no longer deductible. At December 31, 2024, the Company had $208,000 of charitable contribution carryovers. Capital Loss Carryovers.
We also originate loans to finance the acquisition and development of land. Land development loans are generally secured by vacant land located in our primary market and in process of improvement. At December 31, 2023, land development loan balances were $1.2 million, or 0.3%, of our total loan portfolio.
We also originate loans to finance the acquisition and development of land. Land development loans are generally secured by vacant land located in our primary market and in process of improvement. At December 31, 2024, land development loan balances were $1.5 million, or 0.3%, of our total loan portfolio.
During 2023, we purchased $2.0 million of participation interests in two commercial and industrial loans through our membership in a national community bank loan program. Loans are typically provided to middle market businesses with approximately $10-$75 million in EBITDA.
During 2024 and 2023, we purchased $2.7 million and $2.0 million, respectively, of participation interests in three and two commercial and industrial loans, respectively, through our membership in a national community bank loan program. Loans are typically provided to middle market businesses with approximately $10-$75 million in EBITDA.
As of December 31, 2023 and 2022, approximately $25.7 million and $23.0 million of purchased client accounts are included in total assets under management, respectively. The client accounts purchased are recorded as a customer list intangible asset. Identifiable intangible assets that are subject to amortization will be reviewed for impairment, at least annually, based on their fair value.
As of December 31, 2024 and 2023, approximately $28.7 million and $25.7 million of purchased client accounts are included in total assets under management, respectively. The client accounts purchased are recorded as a customer list intangible asset. Identifiable intangible assets that are subject to amortization will be reviewed for impairment, at least annually, based on their fair value.
Under CECL, the ACL at each reporting period serves as a best estimate of projected credit losses over the contractual life of certain assets, adjusted for expected prepayments, given an expectation of economic conditions and forecasts as of the valuation date.
Under CECL, the ACL at each reporting period serves as a best estimate of projected credit losses over the contractual life of certain assets and off balance sheet exposures, adjusted for expected prepayments, given an expectation of economic conditions and forecasts as of the valuation date.
At December 31, 2023, our “reciprocal” CDARS® and ICS deposits were $-0- and $1.1 million, respectively. Deposit account terms vary according to the minimum balance required, the time period that funds must remain on deposit and the interest rate, among other factors.
At December 31, 2024, our “reciprocal” CDARS® and ICS deposits were $-0- and $6.0 million, respectively. Deposit account terms vary according to the minimum balance required, the time period that funds must remain on deposit and the interest rate, among other factors.
An immaterial amount of accrued interest on non-accrual loans was written off during the year ended December 31, 2023, by reversing interest income. Historically, the Company has not experienced uncollectible accrued interest receivable on its securities available-for-sale.
An immaterial amount of accrued interest on non-accrual loans was written off during the years ended December 31, 2024 and 2023, by reversing interest income. Historically, the Company has not experienced uncollectible accrued interest receivable on its securities available-for-sale.
At December 31, 2023, our largest commercial real estate construction loan had an outstanding balance of $2.0 million, and it was performing in accordance with its original repayment terms. Construction loans generally involve greater credit risk than financing improved real estate, because funds are advanced upon the security of the project, which is of uncertain value before its completion.
At December 31, 2024, our largest commercial real estate construction loan had an outstanding balance of $5.7 million, and it was performing in accordance with its original repayment terms. Construction loans generally involve greater credit risk than financing improved real estate, because funds are advanced upon the security of the project, which is of uncertain value before its completion.
Among other things, these provisions generally require that extensions of credit to insiders: • be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features; and • not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of First Seacoast Bank’s capital.
Among other things, these provisions generally require that extensions of credit to insiders: • be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features; and • not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of First Seacoast Bank’s capital. 23 In addition, extensions of credit in excess of certain limits must be approved by First Seacoast Bank’s board of directors.
The Company is amortizing the customer list intangible on a straight-line basis over a ten-year period. During the year ended December 31, 2023 and 2022, $30,000 and $34,000 of amortization expense was recorded, respectively. First Seacoast Bank is active in the communities we serve.
The Company is amortizing the customer list intangible on a straight-line basis over a ten-year period. During the years ended December 31, 2024 and 2023, $32,000 and $30,000 of amortization expense was recorded, respectively. First Seacoast Bank is active in the communities we serve.
As of December 31, 2023, the portfolio of these loans had aggregate outstanding principal balances of $6.6 million and were performing in accordance with their original repayment terms. We expect that growth in this segment of our consumer loan portfolio will continue to increase in the future.
As of December 31, 2024, the portfolio of these loans had aggregate outstanding principal balances of $7.5 million and were performing in accordance with their original repayment terms. We expect that growth in this segment of our consumer loan portfolio will continue to increase in the future.
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 the Bank 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.
For customers requiring full FDIC insurance on certificates of deposit in excess of $250,000, we offer the CDARS® program, which allows the Bank 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.
We sell a portion of fixed-rate conforming loans that we originate on a servicing-retained basis. Secondary market investors that purchase our loans may include Freddie Mac, the New Hampshire Housing Finance Authority and other investors. At December 31, 2023, 3.9% of our one- to four-family residential real estate loans were adjustable-rate loans.
We sell a portion of fixed-rate conforming loans that we originate on a servicing-retained basis. Secondary market investors that purchase our loans may include Freddie Mac, the New Hampshire Housing Finance Authority and other investors. At December 31, 2024, 7.5% of our one- to four-family residential real estate loans were adjustable-rate loans.
At December 31, 2023 2022 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (In thousands) One- to four-family residential real estate $ — $ 131 $ — $ — $ 84 $ — Commercial real estate — — — — — — Acquisition, development and land — — — — — — Commercial and industrial — — — — — — Home equity loans and lines of credit — — 14 5 — — Multi-family — — — — — — Consumer — — — 7 — — Total $ — $ 131 $ 14 $ 12 $ 84 $ — 11 Non-performing Assets.
At December 31, 2024 2023 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (In thousands) One- to four-family residential real estate $ — $ — $ — $ — $ 131 $ — Commercial real estate — — — — — — Acquisition, development and land — — — — — — Commercial and industrial — — — — — — Home equity loans and lines of credit — — — — — 14 Multi-family — — — — — — Consumer — — — — — — Total $ — $ — $ — $ — $ 131 $ 14 11 Non-performing Assets.
We refer to loans that conform to such guidelines as “conforming loans.” We also originate loans above the conforming limits, which are referred to as “jumbo loans.” We generally underwrite jumbo loans in a manner similar to conforming loans. At December 31, 2023, 96.1% of our one- to four-family residential real estate loans were fixed-rate loans.
We refer to loans that conform to such guidelines as “conforming loans.” We also originate loans above the conforming limits, which are referred to as “jumbo loans.” We generally underwrite jumbo loans in a manner similar to conforming loans. At December 31, 2024, 92.5% of our one- to four-family residential real estate loans were fixed-rate loans.
Such loans are subject to the same underwriting criteria and loan approval requirements applied to loans originated by First Seacoast Bank. At December 31, 2023, the average loan balance outstanding in the commercial real estate loans portfolio was $471,000, and the largest individual commercial real estate loan outstanding was a $4.8 million loan secured by two commercial properties.
Such loans are subject to the same underwriting criteria and loan approval requirements applied to loans originated by First Seacoast Bank. At December 31, 2024, the average loan balance outstanding in the commercial real estate loans portfolio was $461,000, and the largest individual commercial real estate loan outstanding was a $4.6 million loan secured by two commercial properties.
Additionally, we purchase consumer loans secured by manufactured housing properties to supplement our consumer loan origination efforts. We purchased $1.5 million and $2.4 million of these loans during 2023 and 2022, respectively. These loans are secured by properties located in the greater Seacoast region.
Additionally, we purchase consumer loans secured by manufactured housing properties to supplement our consumer loan origination efforts. We purchased $1.8 million and $1.5 million of these loans during 2024 and 2023, respectively. These loans are secured by properties located in the greater Seacoast region.
At December 31, 2023, the average loan balance outstanding in the commercial and industrial loans portfolio was $201,000, and the largest individual commercial and industrial loan outstanding was $2.5 million secured by marketable securities. This loan was performing in accordance with its original repayment terms at December 31, 2023.
At December 31, 2024, the average loan balance outstanding in the commercial and industrial loans portfolio was $232,000, and the largest individual commercial and industrial loan outstanding was $2.2 million secured by marketable securities. This loan was performing in accordance with its original repayment terms at December 31, 2024.
Non-performing loans were $141,000, or 0.03% of total loans, at December 31, 2023, compared to $89,000, or 0.02% of total loans, at December 31, 2022. At December 31, 2023, non-performing loans consist of a residential mortgage loan and an associated home equity loan with outstanding balances totaling $141,000 and an estimated market value of $216,000.
Non-performing loans were $-0- at December 31, 2024, compared to $141,000, or 0.03% of total loans, at December 31, 2023. At December 31, 2023, non-performing loans consisted of a residential mortgage loan and an associated home equity loan with outstanding balances totaling $141,000 and an estimated market value of $216,000.
In addition, repayment of these loans can be dependent on the sale of the property to third parties, and the ultimate sale or rental of the property may not occur as anticipated. Commercial and Industrial Loans . At December 31, 2023, we had $25.5 million of commercial and industrial loans representing 5.9% of our total loan portfolio.
In addition, repayment of these loans can be dependent on the sale of the property to third parties, and the ultimate sale or rental of the property may not occur as anticipated. Commercial and Industrial Loans . At December 31, 2024, we had $23.7 million of commercial and industrial loans representing 5.4% of our total loan portfolio.
Generally, when market interest rates rise, the fair value of available-for-sale securities decreases, 17 resulting in unrealized losses, net of tax, and when market interest rates decrease, the fair value of those securities increases, resulting in unrealized gains, net of tax. On November 28, 2023, we executed a balance sheet repositioning strategy related to our available-for-sale investment securities portfolio.
Generally, when market interest rates rise, the fair value of available-for-sale securities decreases, resulting in unrealized losses, net of tax, and when market interest rates decrease, the fair value of those securities increases, resulting in unrealized gains, net of tax. On December 11, 2024, we executed a balance sheet repositioning strategy related to our available-for-sale investment securities portfolio.
CECL may create more volatility in the ACL, specifically the ACL on loans and ACL on off-balance sheet credit exposures.
ASC 326 may create more volatility in the ACL, specifically the ACL on loans and ACL on off-balance sheet credit exposures.
Our one- to four-family residential loan portfolio consists of mortgage loans that enable borrowers to purchase or refinance existing homes, substantially all of which are collateralized by the primary residence of the borrower. At December 31, 2023, we had $268.9 million of loans secured by one- to four-family residential real estate, representing 62.5% of our total loan portfolio.
Our one- to four-family residential loan portfolio consists of mortgage loans that enable borrowers to purchase or refinance existing homes, substantially all of which are collateralized by the primary residence of the borrower. At December 31, 2024, we had $275.2 million of loans secured by one- to four-family residential real estate, representing 62.7% of our total loan portfolio.
An SBIC uses its own capital, plus funds borrowed with an SBA guarantee, to make equity and debt investments in qualifying small businesses. Municipal Bonds. At December 31, 2023, we had municipal bonds totaling $54.7 million, which constituted 44.9% of our securities portfolio, with an average maturity of 20 years. These securities often provide slightly higher after-tax yields than U.S.
An SBIC uses its own capital, plus funds borrowed with an SBA guarantee, to make equity and debt investments in qualifying small businesses. Municipal Bonds. At December 31, 2024, we had municipal bonds totaling $29.5 million, which constituted 24.6% of our securities portfolio, with an average maturity of 20 years. These securities often provide slightly higher after-tax yields than U.S.
We also purchase participation interests in commercial and multi-family real estate loans in which we are not the lead originating lender. At December 31, 2023 and 2022, we had outstanding participation interests totaling $15.3 million and $16.5 million, respectively.
We also purchase participation interests in commercial and multi-family real estate loans in which we are not the lead originating lender. At December 31, 2024 and 2023, we had outstanding participation interests totaling $17.4 million and $15.3 million, respectively.
In recent years, we have introduced new business deposit products to appeal to our commercial borrowers. At December 31, 2023, our ratio of commercial deposits to commercial loans (including commercial real estate loans, acquisition, development and land loans and commercial and industrial loans) was 85.73%.
In recent years, we have introduced new business deposit products to appeal to our commercial borrowers. At December 31, 2024, our ratio of commercial deposits to commercial loans (including commercial real estate loans, acquisition, development and land loans and commercial and industrial loans) was 94.35%.

… 87 more changes not shown on this page.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

4 edited+0 added−0 removed20 unchanged
Biggest changeOur Senior Technology/Cybersecurity Officer has substantial relevant expertise and formal training in the areas of information security and cybersecurity risk management, including 30 years of cybersecurity experience, 5 of which was spent at the Company. The ITAC and ERM are board level committees with the ITSC consisting of members of management.
Biggest changeOur Senior Technology/Cybersecurity Officer has substantial relevant expertise and formal training in the areas of information security and cybersecurity risk management, 27 including 31 years of cybersecurity experience, 6 of which was spent at the Company. The ITAC and ERM are board level committees with the ITSC consisting of members of management.
The Senior Technology/Cybersecurity Officer reports summaries of key issues, including significant cybersecurity and/or privacy incidents, discussed at committee meetings and the actions taken to the ITAC on a quarterly basis (or more frequently as may be required by the IRP).
The Senior Technology/Cybersecurity Officer reports summaries of key issues, including significant cybersecurity and/or 28 privacy incidents, discussed at committee meetings and the actions taken to the ITAC on a quarterly basis (or more frequently as may be required by the IRP).
We also actively monitor our email gateways for malicious phishing email campaigns and monitor remote connections as a portion of our workforce 28 has the option to work remotely.
We also actively monitor our email gateways for malicious phishing email campaigns and monitor remote connections as a portion of our workforce has the option to work remotely.
Additionally, the ERM reviews our cyber security risk profile on a quarterly basis. The ITAC and ERM provide a report of their activities to the board of directors regularly. 29
Additionally, the ERM reviews our cyber security risk profile on a quarterly basis. The ITAC and ERM provide a report of their activities to the board of directors regularly.

Item 2. Properties

Properties — owned and leased real estate

2 edited+2 added−0 removed0 unchanged
Biggest changeThe following table sets forth information regarding our offices as of December 31, 2023: Location Leased or Owned Year Acquired or Leased Net Book Value of Real Property (In thousands) Main Office and Annex: Owned 1890 $ 1,202 633/629 Central Avenue Dover, NH 03820 Branch Offices: 6 Eastern Avenue Owned 1974 $ 917 Barrington, NH 03825 7A Mill Road Leased 1979 $ 34 Durham, NH 03824 1650 Woodbury Avenue Owned 1987 $ 833 Portsmouth, NH 03801 17 Wakefield Street Owned 2009 $ 1,086 Rochester, NH 03867 We believe that current facilities are adequate to meet our present and foreseeable needs, subject to possible future expansion.
Biggest changeThe following table sets forth information regarding our offices as of December 31, 2024: Location Leased or Owned Year Acquired or Leased Net Book Value of Real Property (In thousands) Main Office: Leased 2024 $ 402 633 Central Avenue Dover, NH 03820 Annex: Owned 1890 $ 185 629 Central Avenue Dover, NH 03820 Branch Offices: 6 Eastern Avenue Leased 2024 $ 48 Barrington, NH 03825 7A Mill Road Leased 2024 $ 40 Durham, NH 03824 1650 Woodbury Avenue Leased 2024 $ 31 Portsmouth, NH 03801 17 Wakefield Street Leased 2024 $ 48 Rochester, NH 03867 We believe that current facilities are adequate to meet our present and foreseeable needs, subject to possible future expansion.
ITEM 2. Pr operties As of December 31, 2023, the net book value of our land, building and equipment was $4.1 million.
ITEM 2. Properties As of December 31, 2024, the net book value of our land, building and equipment was $754,000.
Added
On June 11, 2024, the Bank entered into and closed on an agreement with a single purchaser for the purchase and sale of four properties formerly owned and operated by the Bank, which included four branches (with an adjacent drive thru) and a parking lot, each adjacent to a sold branch, for an aggregate cash purchase price of $7.5 million.
Added
Concurrently with the sale-leaseback transaction, the Bank entered into an absolute net lease agreement with the purchaser under which the Bank will lease the properties for an initial term of 15 years with one renewal option of 15 years.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed1 unchanged
Biggest changeAt December 31, 2023, we were not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows. ITEM 4. Mine Saf ety Disclosures Not applicable. 30 PART II
Biggest changeAt December 31, 2024, we were not a party to any pending legal proceedings that we believe would have a material adverse effect on our consolidated financial condition, results of operations or cash flows. ITEM 4. Mine Safety Disclosures Not applicable. 29 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

1 edited+6 added−4 removed7 unchanged
Biggest changeAs of March 22, 2024, we had 342 stockholders of record (excluding the number of persons or entities holding stock in street name through various brokerage firms), and 5,077,164 shares of common stock outstanding.
Biggest changeAs of March 17, 2025, we had 307 stockholders of record (excluding the number of persons or entities holding stock in street name through various brokerage firms), and 4,730,753 shares of common stock outstanding.
Removed
On September 23, 2020, the board of directors of First Seacoast Bancorp (a federal corporation), predecessor to the Company, authorized the repurchase of up to 114,403 shares of common stock (adjusted for conversion of First Seacoast Bancorp, Inc.) of First Seacoast Bancorp (a federal corporation).
Added
On April 11, 2024, the board of directors of the Company authorized a stock repurchase program for the repurchase of up to 507,707 shares of common stock, representing approximately 10% of shares then outstanding, which became effective on May 14, 2024.
Removed
As of December 31, 2022, First Seacoast Bancorp (a federal corporation) had repurchased 114,403 shares of its common stock (adjusted for conversion of First Seacoast Bancorp, Inc.).
Added
On December 12, 2024, the board of directors of the Company authorized additional stock repurchases, up to 228,858 shares of common stock, under this stock repurchase program. The additional repurchase authorization represents approximately 5% of pro forma outstanding shares assuming the repurchase of the remaining shares subject to the original authorization.
Removed
The repurchase program of First Seacoast Bancorp (a federal corporation) was terminated effective January 19, 2023, in connection with the consummation of the conversion of First Seacoast Bancorp, MHC from mutual to stock form. The Company did not repurchase any shares of its common stock during the quarter ended December 31, 2023.
Added
The Company conducts repurchases through open market purchases, including by means of a trading plan adopted under SEC Rule 10b5-1, or in privately negotiated transactions, subject to market conditions and other factors. There is no guarantee as to the number of shares that the Company may ultimately repurchase.
Removed
There were no sales of unregistered securities during the year ended December 31, 2023.
Added
The program will expire 12 months after the effective date, regardless of whether all shares will have been repurchased. On February 7, 2025, the expiration date of the program was extended to December 3, 2025. The Company may suspend or discontinue the program at any time. The Company holds repurchased shares in its treasury.
Added
As of December 31, 2024, the Company has repurchased 403,211 shares under this stock repurchase program.
Added
The following table summarizes the Company’s repurchases of its outstanding shares of common stock during the quarter ended December 31, 2024: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs October 1, 2024 - October 31, 2024 23,383 $ 9.05 23,383 125,622 November 1, 2024 - November 30, 2024 11,006 9.15 11,006 114,616 December 1, 2024 - December 31, 2024 10,120 9.77 10,120 333,354 Total 44,509 44,509 There were no sales of unregistered securities during the year ended December 31, 2024.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

98 edited+14 added−32 removed84 unchanged
Biggest changeAt or For the Year Ended December 31, 2023 2022 2021 (In thousands, except per share data) Selected Financial Condition Data: Total assets $ 571,035 $ 537,424 $ 487,074 Total loans 430,031 402,505 376,641 Total deposits 404,798 382,363 393,243 Total borrowings 93,007 99,397 29,462 Total stockholders' equity 66,618 49,337 60,468 Book value per share (1) $ 13.12 $ 9.73 $ 11.81 Selected Operating Data: Interest and dividend income $ 20,590 $ 16,610 $ 15,495 Interest expense 9,080 1,747 1,235 Net interest and dividend income 11,510 14,863 14,260 Provision for credit losses 188 — 205 Net interest and dividend income after provision for credit losses 11,322 14,863 14,055 Non-interest (loss) income (2,007 ) 888 2,249 Non-interest expense 16,027 16,767 13,082 (Loss) income before income tax expense (benefit) (6,712 ) (1,016 ) 3,222 Income tax expense (benefit) 3,944 (451 ) 601 Net (loss) income $ (10,656 ) $ (565 ) $ 2,621 Share Data (1) : Average shares outstanding, basic 4,650,916 4,820,330 4,862,274 Average shares outstanding, diluted 4,650,916 4,820,330 4,862,274 Total shares outstanding 5,077,164 5,068,637 5,117,982 Basic (loss) earnings per share $ (2.29 ) $ (0.12 ) $ 0.54 Diluted (loss) earnings per share $ (2.29 ) $ (0.12 ) $ 0.54 (1) Adjusted for conversion of the former First Seacoast Bancorp, MHC. 32 At or For the Year Ended December 31, 2023 2022 2021 Performance Ratios: Return on average assets (1) (1.93 )% (0.11 )% 0.55 % Return on average equity (2) (15.10 )% (1.05 )% 4.38 % Interest rate spread (3) 1.59 % 2.86 % 2.94 % Net interest margin (4) 2.16 % 2.99 % 3.04 % Non-interest expenses as a percent of average assets 2.91 % 3.27 % 2.73 % Efficiency ratio (5) 168.65 % 106.45 % 79.24 % Average interest-earning assets as a percent of average interest-bearing liabilities 133.23 % 136.99 % 139.51 % Average equity as a percent of average assets (6) 12.81 % 10.47 % 12.48 % Capital Ratios (First Seacoast Bank Only): Total Capital (to risk-weighted assets) 15.32 % 15.53 % 17.87 % Tier 1 Capital (to risk-weighted assets) 14.27 % 14.45 % 16.63 % Common Equity Tier 1 (to risk-weighted assets) 14.27 % 14.45 % 16.63 % Tier 1 Capital (to average assets) 9.19 % 9.20 % 9.92 % Asset Quality Ratios: Allowance for credit losses on loans as a percent of total loans 0.79 % 0.89 % 0.95 % Allowance for credit losses on loans as a percent of non-performing loans 2,404.26 % 4,023.60 % 428.91 % Net recoveries as a percent of average outstanding loans during the year — — 0.01 % Non-performing loans as a percent of total loans 0.03 % 0.02 % 0.22 % Non-performing loans as a percent of total assets 0.02 % 0.02 % 0.17 % Non-performing assets as a percent of total assets 0.02 % 0.02 % 0.17 % Other Data: Number of offices 5 5 5 Number of full-time equivalent employees 76 80 81 (1) Represents net loss divided by average total assets.
Biggest changeAt or For the Year Ended December 31, 2024 2023 2022 (In thousands, except per share data) Selected Financial Condition Data: Total assets $ 580,780 $ 571,035 $ 537,424 Total loans 438,967 430,031 402,505 Total deposits 454,208 404,798 382,363 Total borrowings 52,268 93,007 99,397 Total stockholders' equity 62,050 66,618 49,337 Book value per share (1) $ 12.97 $ 13.12 $ 9.73 Selected Operating Data: Interest and dividend income $ 25,431 $ 20,590 $ 16,610 Interest expense 13,533 9,080 1,747 Net interest and dividend income 11,898 11,510 14,863 (Release) provision for credit losses (72 ) 188 — Net interest and dividend income after provision for credit losses 11,970 11,322 14,863 Non-interest income (loss) 3,904 (2,007 ) 888 Non-interest expense 15,860 16,027 16,767 Income (loss) before income tax expense (benefit) 14 (6,712 ) (1,016 ) Income tax expense (benefit) 527 3,944 (451 ) Net loss $ (513 ) $ (10,656 ) $ (565 ) Share Data (1) : Average shares outstanding, basic 4,335,154 4,650,916 4,820,330 Average shares outstanding, diluted 4,335,154 4,650,916 4,820,330 Total shares outstanding 4,785,569 5,077,164 5,068,637 Basic loss per share $ (0.12 ) $ (2.29 ) $ (0.12 ) Diluted loss per share $ (0.12 ) $ (2.29 ) $ (0.12 ) (1) Adjusted for conversion of the former First Seacoast Bancorp, MHC. 31 At or For the Year Ended December 31, 2024 2023 2022 Performance Ratios: Return on average assets (1) (0.09 )% (1.93 )% (0.11 )% Return on average equity (2) (0.79 )% (15.10 )% (1.05 )% Interest rate spread (3) 1.42 % 1.59 % 2.86 % Net interest margin (4) 2.09 % 2.16 % 2.99 % Non-interest expenses as a percent of average assets 2.72 % 2.91 % 3.27 % Efficiency ratio (5) 100.37 % 168.65 % 106.45 % Average interest-earning assets as a percent of average interest-bearing liabilities 127.98 % 133.23 % 136.99 % Average equity as a percent of average assets (6) 11.12 % 12.81 % 10.47 % Capital Ratios (First Seacoast Bank Only): Total Capital (to risk-weighted assets) 15.55 % 15.32 % 15.53 % Tier 1 Capital (to risk-weighted assets) 14.52 % 14.27 % 14.45 % Common Equity Tier 1 (to risk-weighted assets) 14.52 % 14.27 % 14.45 % Tier 1 Capital (to average assets) 8.69 % 9.19 % 9.20 % Asset Quality Ratios: Allowance for credit losses on loans as a percent of total loans 0.79 % 0.79 % 0.89 % Allowance for credit losses on loans as a percent of non-performing loans — 2,404.26 % 4,023.60 % Net charge-offs as a percent of average outstanding loans during the year 0.01% — — Non-performing loans as a percent of total loans — 0.03 % 0.02 % Non-performing loans as a percent of total assets — 0.02 % 0.02 % Non-performing assets as a percent of total assets — 0.02 % 0.02 % Other Data: Number of offices 5 5 5 Number of full-time equivalent employees 75 76 80 (1) Represents net loss divided by average total assets.
Management determines that a loan is non-performing when it is probable at least a portion of the loan will not be collected in accordance with the original terms due to a deterioration in the financial condition of the borrower or the value of the underlying collateral if the loan is collateral dependent.
Management determines that a loan is non-performing when it is probable that at least a portion of the loan will not be collected in accordance with the original terms due to a deterioration in the financial condition of the borrower or the value of the underlying collateral if the loan is collateral dependent.
We generally cease accruing interest on our loans when contractual payments of principal or interest have become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. Interest received on non-accrual loans generally is applied against principal or applied to interest on a cash basis.
We generally cease accruing interest on our loans when contractual payments of principal or interest have become 90 days past due or when management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. Interest received on non-accrual loans generally is applied against principal or applied to interest on a cash basis.
Changes in the level of interest rates also may negatively affect our ability to originate real estate loans, the value of our assets and our ability to realize gains from the sale of our assets, all of which ultimately affect our earnings.
Changes in the level of interest rates may also negatively affect our ability to originate real estate loans, the value of our assets and our ability to realize gains from the sale of our assets, all of which ultimately affect our earnings.
We consider our primary lending market area to be Strafford and Rockingham Counties in New Hampshire and York County in southern Maine. 31 Selected Financial Data The following tables set forth selected historical financial and other data for the Company at the dates and for the periods indicated.
We consider our primary lending market area to be Strafford and Rockingham Counties in New Hampshire and York County in southern Maine. Selected Financial Data The following tables set forth selected historical financial and other data for the Company at the dates and for the periods indicated.
These fair value measurements are significantly impacted by changes in market interest rates and current economic conditions as compared to 36 the coupon rates for the derivatives. We obtain a monthly interest rate volatility report to monitor the volatility of our derivatives portfolio.
These fair value measurements are significantly impacted by changes in market interest rates and current economic conditions as compared to the coupon rates for the derivatives. We obtain a monthly interest rate volatility report to monitor the volatility of our derivatives portfolio.
In recent years, we have sought to supplement these originations by focusing on originating higher 33 yielding commercial real estate loans (including owner-occupied and non-owner-occupied commercial real estate and multi-family real estate loans), construction loans, commercial and industrial loans and home equity loans and lines of credit.
In recent years, we have sought to supplement these originations by focusing on originating higher yielding commercial real estate loans (including owner-occupied and non-owner-occupied commercial real estate and multi-family real estate loans), construction loans, commercial and industrial loans and home equity loans and lines of credit.
These percent changes were due primarily to the migration of deposits during 2023 from less interest-sensitive products such as NOW and demand deposits to products with greater interest rate sensitivity, i.e., money market and time deposits.
These percent changes were due primarily to the migration of deposits during 2024 and 2023 from less interest-sensitive products such as NOW and demand deposits to products with greater interest rate sensitivity, i.e., money market and time deposits.
Factors such as inflation, recession, and instability in financial markets, among other factors beyond our control, may affect interest rates. 43 In a rising interest rate environment, we would expect that the rates on our deposits and borrowings would reprice upwards faster than the rates on our long-term loans and investments, which would be expected to compress our interest rate spread and have a negative effect on our profitability.
Factors such as inflation, recession, and instability in financial markets, among other factors beyond our control, may affect interest rates. 41 In a rising interest rate environment, we would expect that the rates on our deposits and borrowings would reprice upwards faster than the rates on our long-term loans and investments, which would be expected to compress our interest rate spread and have a negative effect on our profitability.
The Bank has established two secured credit facilities with the FRB – Bank Term Funding Program (“BTFP”) and Borrower-In-Custody of Collateral Program (“BIC”).
The Bank established two secured credit facilities with the FRB – Bank Term Funding Program (“BTFP”) and Borrower-In-Custody of Collateral Program (“BIC”).
The following information is only a summary and should be read in conjunction with our consolidated financial statements and the notes thereto of this annual report. The information at and for the years ended December 31, 2023 and 2022 is derived in part from the audited consolidated financial statements included in this annual report.
The following information is only a summary and should be read in conjunction with our consolidated financial statements and the notes thereto of this annual report. The information at and for the years ended December 31, 2024 and 2023 is derived in part from the audited consolidated financial statements included in this annual report.
At December 31, 2023 and 2022, there were no financial assets or liabilities measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances.
At December 31, 2024 and 2023, there were no financial assets or liabilities measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances.
Historically, our principal business activity has been the origination of one- to four-family residential mortgage loans.
Historically, our principal business activity has been the origination of one- to four-family residential mortgage 32 loans.
The ACL is increased through provision for credit losses on loans and decreased by charge-offs, net of recoveries of amounts previously charged-off. 34 The ACL is measured on a collective basis for pools of loans with similar risk characteristics.
The ACL is increased through provision for credit losses on loans and decreased by charge-offs, net of recoveries of amounts previously charged-off. 33 The ACL is measured on a collective basis for pools of loans with similar risk characteristics.
See Note 17 of the notes to our consolidated financial statements of this annual report. Management is not aware of any conditions or events that would change First Seacoast Bank’s categorization as well-capitalized.
See Note 16 of the notes to our consolidated financial statements of this annual report. Management is not aware of any conditions or events that would change First Seacoast Bank’s categorization as well-capitalized.
The estimation of the ACL is in accordance with the CECL methodology utilizing the WARM modeling approach as performed in a third-party software application. The adequacy of the ACL is evaluated on a quarterly basis by management. This assessment includes procedures to estimate the ACL and test the adequacy and appropriateness of the resulting balance.
The estimation of the ACL is in accordance with the ASC 326 methodology utilizing the WARM modeling approach as performed in a third-party software application. The adequacy of the ACL is evaluated on a quarterly basis by management. This assessment includes procedures to estimate the ACL and test the adequacy and appropriateness of the resulting balance.
The information at and for the year ended December 31, 2021 is derived in part from audited consolidated financial statements that are not included in this annual report.
The information at and for the year ended December 31, 2022 is derived in part from audited consolidated financial statements that are not included in this annual report.
We anticipate that we will have sufficient funds to meet our current funding commitments. We have no material commitments for capital expenditures as of December 31, 2023. Our current strategy is to increase core deposits and utilize FHLB and FRB advances, as well as brokered deposits, to fund loan growth.
We anticipate that we will have sufficient funds to meet our current funding commitments. We have no material commitments for capital expenditures as of December 31, 2024. Our current strategy is to increase core deposits and utilize FHLB advances, as well as brokered deposits, to fund loan growth.
At the same date, our analysis estimated that, in the event of an instantaneous 200 basis point decrease in interest rates, the Bank would experience a 11.3% increase in the economic value of equity. Any substantial, unexpected, prolonged change in market interest rates could have a material adverse effect on our financial condition, liquidity and results of operations.
At the same date, our analysis estimated that, in the event of an instantaneous 200 basis point decrease in interest rates, the Bank would experience a 12.1% increase in the economic value of equity. Any substantial, unexpected, prolonged change in market interest rates could have a material adverse effect on our financial condition, liquidity and results of operations.
Alternatively, if the qualitative adjustment to reflect current economic conditions not already reflected in the historical loss information were removed from the chosen forecast period used in the calculation of the ACL, the ACL would decrease by $941,000 to $2.4 million.
Alternatively, if the qualitative adjustment to reflect current economic conditions not already reflected in the historical loss information were removed from the chosen forecast period used in the calculation of the ACL, the ACL would decrease by $1.1 million to $2.4 million.
We have been successful in maintaining strong asset quality in recent years. Our ratio of non-performing assets as a percent of total assets was 0.02%, 0.02% and 0.17%, at December 31, 2023, 2022 and 2021, respectively. We attribute this historical credit quality to a conservative credit culture and an effective credit risk management environment.
We have been successful in maintaining strong asset quality in recent years. Our ratio of non-performing assets as a percent of total assets was 0.00%, 0.02% and 0.02%, at December 31, 2024, 2023 and 2022, respectively. We attribute this historical credit quality to a conservative credit culture and an effective credit risk management environment.
We currently calculate NPV under the assumptions that interest rates increase 100, 200, 300 and 400 basis points from current market rates and that interest rates decrease 100, 200, 300 and 400 basis points from current market rates. 42 The following table presents the estimated changes in our net portfolio value that would result from changes in market interest rates as of December 31, 2023 and 2022.
We currently calculate NPV under the assumptions that interest rates increase 100, 200, 300 and 400 basis points from current market rates and that interest rates decrease 100, 200, 300 and 400 basis points from current market rates. 40 The following table presents the estimated changes in our net portfolio value that would result from changes in market interest rates as of December 31, 2024 and 2023.
The Bank’s economic value of equity analysis as of December 31, 2023 estimated that, in the event of an instantaneous 200 basis point increase in interest rates, the Bank would experience a 21.5% decrease in economic value of equity which was above the policy limit of 20%.
The Bank’s economic value of equity analysis as of December 31, 2024 estimated that, in the event of an instantaneous 200 basis point increase in interest rates, the Bank would experience a 21.2% decrease in economic value of equity which was above the policy limit of 20%.
Net cash used by investing activities, which consists primarily of disbursements for loan originations and loan purchases and the purchase of securities available-for-sale, offset by principal collections on loans, proceeds from sales, maturities and principal payments received on securities available-for-sale, was $39.5 million and $58.1 million for the years ended December 31, 2023 and 2022, respectively.
Net cash used by investing activities, which consists primarily of disbursements for loan originations and loan purchases and the purchase of securities available-for-sale, offset by principal collections on loans, proceeds from sales, maturities and principal payments received on securities available-for-sale, was $2.5 million and $39.5 million for the years ended December 31, 2024 and 2023, respectively.
If a pre-recessionary period such as the period between March 2007 and September 2009 was chosen as the reasonable and supportable forecast period with a similar qualitative adjustment consideration, the ACL would increase by $289,000 to $3.7 million.
If a pre-recessionary period such as the period between March 2007 and September 2009 was chosen as the reasonable and supportable forecast period with a similar qualitative adjustment consideration, the ACL would increase by $99,000 to $3.6 million.
Net cash provided by financing activities, consisting primarily of proceeds from the sale of common stock, activity in deposit accounts, FHLB and FRB advances, was $39.2 million and $58.7 million for the years ended December 31, 2023 and 2022, respectively. We are committed to maintaining a strong liquidity position. We monitor our liquidity position daily.
Net cash provided by financing activities, consisting primarily of proceeds from the sale of common stock, activity in deposit accounts, FHLB and FRB advances, was $6.5 million and $39.2 million for the years ended December 31, 2024 and 2023, respectively. We are committed to maintaining a strong liquidity position. We monitor our liquidity position daily.
Core deposits (which we define as all deposits except for time deposits), particularly non-interest-bearing demand deposits, represent a low-cost, stable source of funds. Core deposits were 77.5% of our total deposits at December 31, 2023. We also rely on higher cost Federal Home Loan Bank and Federal Reserve Bank borrowings as supplemental funding sources.
Core deposits (which we define as all deposits except for time deposits), particularly non-interest-bearing demand deposits, represent a low-cost, stable source of funds. Core deposits were 70.1% of our total deposits at December 31, 2024. We also rely on higher cost Federal Home Loan Bank and Federal Reserve Bank borrowings as supplemental funding sources.
The weighted average rate of interest-bearing deposits increased to 1.67% for the year ended December 31, 2023 from 0.23% for the year ended December 31, 2022 due primarily to an increase in market interest rates and to respond to deposit pricing by competitors.
The weighted average rate of interest-bearing deposits increased to 2.67% for the year ended December 31, 2024 from 1.67% for the year ended December 31, 2023 due primarily to an increase in market interest rates and to respond to deposit pricing by competitors.
(4) Net deferred fee expense included in loan interest totaled $374,000 and $194,000 for the years ended December 31, 2023 and 2022, respectively. 41 Rate/Volume Analysis The following table presents the effects of changing rates and volumes on our net interest income for the years indicated.
(4) Net deferred fee expense included in loan interest totaled $475,000 and $374,000 for the years ended December 31, 2024 and 2023, respectively. 39 Rate/Volume Analysis The following table presents the effects of changing rates and volumes on our net interest income for the years indicated.
The amount of dividends that the Bank may declare and pay to the Company is governed by applicable bank regulations. At December 31, 2023, the Company (on an unconsolidated basis) had liquid assets of $20.4 million. At December 31, 2023, First Seacoast Bank exceeded all of its regulatory capital requirements.
The amount of dividends that the Bank may declare and pay to the Company is governed by applicable bank regulations. At December 31, 2024 the Company (on an unconsolidated basis) had liquid assets of $17.1 million. At December 31, 2024, First Seacoast Bank exceeded all of its regulatory capital requirements.
The weighted 39 average yield for all other interest-earning assets increased to 3.12% for the year ended December 31, 2023 from 2.25% for the year ended December 31, 2022 due primarily to an increase in market interest rates. Interest Expense.
The weighted average yield for all other interest-earning assets increased to 4.25% for the year ended December 31, 2024 from 3.12% for the year ended December 31, 2023 due primarily to an increase in market interest rates. Interest Expense.
Our ACL as a percent of total loans decreased from 0.89% at December 31, 2022 to 0.79% at December 31, 2023, which primarily reflects the impact of ASC 326 adoption, calculated loss rates based upon remaining life measurements and our consideration of the current economic conditions that affect the qualitative adjustments used in the determination of the ACL as they have evolved over the year from the impact of inflationary pressures and geopolitical concerns, among other considerations.
Our ACL as a percent of total loans was 0.79% at December 31, 2024 and 2023, which primarily reflects the impact of calculated loss rates based upon remaining life measurements and our consideration of the current economic conditions that affect the qualitative adjustments used in the determination of the ACL as they have evolved over the year from the impact of inflationary pressures and geopolitical concerns, among other considerations.
As of December 31, 2023 and 2022, the portfolios of purchased loans had outstanding principal balances of $33.3 million and $30.5, respectively, and were performing in accordance with their original repayment terms.
As of December 31, 2024 and 2023, the portfolios of purchased loans had outstanding principal balances of $34.3 million and $33.3 million, respectively, and were performing in accordance with their original repayment terms.
ASC Topic 825, “Financial Instruments,” also requires disclosure of the fair value of financial assets and financial liabilities that are not measured and reported at fair value on a recurring or non-recurring basis. ASU 2016-01 requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes.
ASC 820 - "Fair Value Measurement (Topic 820)" also requires disclosure of the fair value of financial assets and financial liabilities that are not measured and reported at fair value on a recurring or non-recurring basis. ASC 820 requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes.
At December 31, 2023, our ratio of net loans to deposits was 105.4% and our borrowings from these supplemental funding sources totaled $93.0 million. We continue to focus on expanding core deposits by leveraging our business development officers and commercial lending and retail relationships. • Grow organically and through opportunistic acquisitions or de novo branching.
At December 31, 2024, our ratio of net loans to deposits was 95.9% and our borrowings from these supplemental funding sources totaled $52.3 million. We continue to focus on expanding core deposits by leveraging our business development officers and commercial lending and retail relationships. • Grow organically and through opportunistic acquisitions or de novo branching.
We also continue to consider selling selected, conforming 15-year and 30-year fixed rate mortgage loans to the secondary market on a servicing retained basis as market conditions allow, providing us a recurring source of revenue from loan servicing income and gains on the sale of such loans.
We also continue to consider selling selected, conforming 15-year and 30-year fixed rate mortgage loans to the secondary market on a servicing retained basis as market conditions allow, providing us a recurring source of revenue from loan servicing income and gains on the sale of such loans. Deposits. Our deposits are generated primarily from residents within our primary market area.
The weighted average yield for the loan portfolio increased 42 basis points to 4.08% for the year ended December 31, 2023 from 3.66% for the year ended December 31, 2022 due primarily to an increase in market interest rates.
The weighted average yield for the loan portfolio increased 45 basis points to 4.53% for the year ended December 31, 2024 from 4.08% for the year ended December 31, 2023 due primarily to an increase in market interest rates.
Based upon management’s analysis of the ACL, a $188,000 provision for credit losses expense was recorded for the year ended December 31, 2023 compared to $-0- for the year ended December 31, 2022.
Based upon management’s analysis of the ACL, a $(72,000) release of credit losses was recorded for the year ended December 31, 2024 compared to a $188,000 provision for credit losses for the year ended December 31, 2023.
As of December 31, 2023 and 2022, 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 25.3% of total deposits, and $82.0 million, or 21.4% of total deposits, respectively.
As of December 31, 2024 and 2023, 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 $112.2 million, or 24.7% of total deposits, and $102.5 million, or 25.3% of total deposits, respectively.
Comparison of Operating Results for the Years Ended December 31, 2023 and 2022 Net Loss. Net loss was $10.7 million for the year ended December 31, 2023, compared to a net loss of $565,000 for the year ended December 31, 2022, an increase of $10.1 million.
Comparison of Operating Results for the Years Ended December 31, 2024 and 2023 Net Loss. Net loss was $513,000 for the year ended December 31, 2024, compared to a net loss of $10.7 million for the year ended December 31, 2023, a decrease of $10.1 million.
Overview Our business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations and borrowings from the Federal Home Loan Bank, in one- to four-family residential real estate loans, commercial real estate and multi-family real estate loans, acquisition, development and land loans, commercial and industrial loans, home equity loans and lines of credit and consumer loans.
You should read the information in this section in conjunction with the other business and financial information provided in this annual report. 30 Overview Our business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations and borrowings from the Federal Home Loan Bank, in one- to four-family residential real estate loans, commercial real estate and multi-family real estate loans, acquisition, development and land loans, commercial and industrial loans, home equity loans and lines of credit and consumer loans.
While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition. Our most liquid assets are cash and cash equivalents and available-for-sale investment securities.
The entire balance of this credit facility was available at December 31, 2023. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition. Our most liquid assets are cash and cash equivalents and available-for-sale investment securities.
The information in this section has been derived from the consolidated financial statements, which appear elsewhere in this annual report. Certain prior year amounts have been reclassified to conform to the current year presentation. You should read the information in this section in conjunction with the other business and financial information provided in this annual report.
The information in this section has been derived from the consolidated financial statements which appear elsewhere in this annual report. Certain prior year amounts have been reclassified to conform to the current year presentation.
The average balance of interest-bearing deposits increased $22.2 million, or 7.5%, to $319.2 million for the year ended December 31, 2023 from $297.0 million for the year ended December 31, 2022 primarily as a result of an increase in the average balance of money market, savings and time deposits offset by a decrease in the average balances of NOW and demand deposits.
The average balance of interest-bearing deposits increased $42.4 million, or 13.3%, to $361.6 million for the year ended December 31, 2024 from $319.2 million for the year ended December 31, 2023 primarily as a result of an increase in the average balance of time, savings and money market deposits offset by a decrease in the average balances of NOW and demand deposits.
The provision for credit losses expense for the year ended December 31, 2023 consisted of a $105,000 provision for credit losses on loans and a $83,000 provision for credit losses on off-balance sheet credit exposures. Non-Interest Income.
The release of credit losses for the year ended December 31, 2024 consisted of a $120,000 provision for credit losses on loans and a $(192,000) release of credit losses on off-balance sheet credit exposures. Non-Interest Income (Loss).
Economic indicators during this period were mixed and appear similar to the current economy. 35 Additionally, because historical loss experience may not fully reflect our expectations about the future, management has adjusted the historical loss rate through a qualitative adjustment to reflect current economic conditions not already reflected in the historical loss information.
Additionally, because historical loss experience may not fully 34 reflect our expectations about the future, management has adjusted the historical loss rate through a qualitative adjustment to reflect current economic conditions not already reflected in the historical loss information.
Net interest margin decreased to 2.16% for the year ended December 31, 2023 from 2.99% for the year ended December 31, 2022 due primarily to an increase in the average rate of borrowings and interest-bearing deposits offset by an increase in the average yield on interest-earning assets. Provision for Credit Losses.
Net interest rate spread decreased to 1.42% for the year ended December 31, 2024 from 1.59% for the year ended December 31, 2023 due primarily to an increase in the average rate of interest-bearing deposits offset by an increase in the average yield on interest-earning assets. (Release) Provision for Credit Losses.
The effective tax rate was 58.8% and (44.4)% for the years ended December 31, 2023 and 2022, respectively. Loss before income tax expense (benefit) was $6.7 million for the year ended December 31, 2023 as compared to $1.0 million for the year ended December 31, 2022.
The effective tax rate was 3,764.3% and 58.8% for the years ended December 31, 2024 and 2023, respectively. Income (loss) before income tax expense was $14,000 for the year ended December 31, 2024 as compared to $(6.7) million for the year ended December 31, 2023.
Net interest and dividend income decreased $3.4 million, or 22.6%, to $11.5 million for the year ended December 31, 2023 from $14.9 million for the year ended December 31, 2022.
Net interest and dividend income increased $388,000, or 3.4%, to $11.9 million for the year ended December 31, 2024 from $11.5 million for the year ended December 31, 2023.
At December 31, 2023, our “reciprocal” CDARS® and ICS deposits were $-0- and $1.1 million, 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 as supplemental sources of funds.
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 as supplemental sources of funds.
Core deposits (defined as all deposits other than time deposits) decreased $7.1 million, or 2.2%, to $313.5 million at December 31, 2023 from $320.6 million at December 31, 2022.
Core deposits (defined as all deposits other than time deposits) increased $5.0 million, or 1.6%, to $318.5 million at December 31, 2024 from $313.5 million at December 31, 2023.
Interest and Dividend Income. Interest and dividend income increased $4.0 million, or 24.0%, to $20.6 million for the year ended December 31, 2023 from $16.6 million for the year ended December 31, 2022.
Interest and Dividend Income. Interest and dividend income increased $4.8 million, or 23.5%, to $25.4 million for the year ended December 31, 2024 from $20.6 million for the year ended December 31, 2023.
Actual results may differ from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations. As noted above, effective January 1, 2023, the Company adopted the new accounting standard for credit losses.
Actual results may differ from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations.
Time 38 deposits increased $29.6 million, or 47.9%, to $91.3 million at December 31, 2023 from $61.7 million at December 31, 2022. At December 31, 2023 and 2022, there were $23.6 million and $18.1 million of brokered deposits included in time deposits, respectively, and $20.9 million and $-0- of brokered deposits included in savings deposits, respectively.
Time deposits increased $44.4 million, or 48.7%, to $135.7 million at December 31, 2024 from $91.3 million at December 31, 2023. At December 31, 2024 and 2023, there were $63.1 million and $23.6 million of brokered deposits included in time deposits, respectively, and $22.1 million and $20.9 million of brokered deposits included in savings deposits, respectively.
Non-Interest Expense. Non-interest expense decreased $740,000, or 4.4%, to $16.0 million for the year ended December 31, 2023 from $16.8 million for the year ended December 31, 2022.
Non-Interest Expense. Non-interest expense decreased $167,000, or 1.0%, to $15.9 million for the year ended December 31, 2024 from $16.0 million for the year ended December 31, 2023.
This decrease was due to an increase of $37.1 million, or 10.2%, in the average balance of interest-bearing liabilities, consisting primarily of an increase in the average balance of borrowings and time deposits, during the year ended December 31, 2023 offset by a $35.8 million, or 7.2%, increase in the average balance of interest-earning assets, consisting primarily of increases in the average balances of loans and non-taxable debt securities.
This increase was due to a $36.9 million, or 6.9%, increase in the average balance of interest-earning assets, consisting primarily of increases in the average balances of loans and taxable debt securities during the year ended December 31, 2024 offset by an increase of $45.3 million, or 11.3%, in the average balance of interest-bearing liabilities, consisting primarily of an increase in the average balance of time and savings deposits.
This time period was one of relatively stagnant expansion in the U.S. with GDP growth rates in the 1.6% - 2.6% range.
This time period was one of relatively stagnant expansion in the U.S. with GDP growth rates in the 1.6% - 2.6% range. Economic indicators during this period were mixed and appear similar to the current economy.
As noted above, on November 28, 2023, we executed a balance sheet repositioning strategy related to our available-for-sale investment securities portfolio where we sold $40.6 million in book value of lower-yielding investment 37 securities for an after-tax realized loss of $3.1 million and purchased $40.6 million of higher-yielding investment securities which were classified as available-for-sale upon purchase. Net Loans.
On December 11, 2024, we executed a balance sheet repositioning strategy related to our available-for-sale investment securities portfolio. We sold $23.5 million in book value of lower-yielding investment securities for an after-tax realized gain of $5,000 and purchased $16.6 million of higher-yielding investment securities which were classified as available-for-sale upon purchase.
The interest rate for term advances under the BTFP will be the one-year overnight index swap rate plus 10 basis points and fixed for the term of the advance – up to one year - on the day the advance is made.
The interest rate for term advances under the BTFP was based upon the one-year overnight index swap rate plus 10 basis points and fixed for the term of the advance – up to one year - on the day the advance was made. Advances under the BIC, if any, are collateralized by eligible collateral.
Total interest expense increased $7.3 million, or 419.8%, to $9.1 million for the year ended December 31, 2023 from $1.7 million for the year ended December 31, 2022. Interest expense on deposits increased $4.7 million, or 666.2%, for the year ended December 31, 2023 compared to the year ended December 31, 2022.
Total interest expense increased $4.5 million, or 49.0%, to $13.5 million for the year ended December 31, 2024 from $9.1 million for the year ended December 31, 2023. Interest expense on deposits increased $4.3 million, or 79.9%, for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Additionally, at December 31, 2023 and 2022, we had an overnight line of credit with the FHLB for up to $3.0 million and unsecured Fed Funds borrowing lines of credit with two correspondent banks for up to $5.0 million. At December 31, 2023 and 2022, there were no outstanding balances under any of these additional credit facilities.
Additionally, at December 31, 2024 and 2023, the Bank had a total of $2.0 million and $5.0 million, respectively, of unsecured Fed Funds borrowing lines of credit with correspondent banks. At December 31, 2024 and 2023, there were no outstanding balances under any of these additional credit facilities.
Non-interest income decreased $2.9 million, or 326.0%, to $(2.0) million for the year ended December 31, 2023 compared to $888,000 for the year ended December 31, 2022.
Non-interest income increased $5.9 million, or 294.5%, to $3.9 million for the year ended December 31, 2024 compared to $(2.0) million for the year ended December 31, 2023.
At December 31, 2023 and 2022, fair values of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. At December 31, 2023 and 2022, these factors have not materially impacted the estimated fair values of loans as compared to their carrying amounts.
At December 31, 2024 and 2023, fair values of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors.
This increase was due to investment purchases totaling $55.4 million and a $6.2 million decrease in net unrealized losses within the portfolio, offset by proceeds from sales, maturities and principal repayments totaling $40.9 million, realized losses of $4.2 million and $904,000 of net amortization of bond premiums.
This decrease was due to $36.2 million of proceeds from sales, maturities and principal payments received on securities available-for-sale and $547,000 of net amortization of bond premiums, offset by investment purchases totaling $36.7 million and a $1.5 million increase in net unrealized losses within the portfolio.
Net deferred loan costs increased $183,000, or 7.5%, to $2.6 million at December 31, 2023 from $2.4 million at December 31, 2022 due primarily to the increase in deferred costs on consumer loans.
Net deferred loan costs increased $136,000, or 5.2%, to $2.8 million at December 31, 2024 from $2.6 million at December 31, 2023 due primarily to the increase in deferred costs on consumer loans offset by a decrease in deferred costs on one- to four-family residential mortgage loans.
We monitor our exposure to movements in interest rates regularly and discuss the implementation of strategies we believe will mitigate the negative impact of such movements. All categories of percent change to NPV were within board of directors - approved policy limits at December 31, 2022. Economic Value of Equity.
We monitor our exposure to movements in interest rates regularly and discuss the implementation of strategies we believe will mitigate the negative impact of such movements. Economic Value of Equity.
The decrease in core deposits was due to a $26.9 million, or 29.0%, decrease in non-interest bearing accounts and a decrease in NOW accounts and demand deposits of $14.5 million, or 13.0%, offset by an increase in money market deposits of $24.4 million, or 40.1%, and an increase in savings deposits of $9.9 million, or 18.0%.
The increase in core deposits was due to a $20.7 million, or 31.9%, increase in savings deposits, offset by a decrease in NOW and demand deposits of $1.5 million, or 0.9%, and a decrease in money market deposits of $14.3 million, or 16.7%.
The levels of these assets are dependent on our operating, financing, lending and investing activities during any given period. 44 Our cash flows are comprised of three primary classifications: cash flows from operating activities; investing activities and financing activities.
The levels of these assets are dependent on our operating, financing, lending and investing activities during any given period. Our cash flows are comprised of three primary classifications: cash flows from operating activities; investing activities and financing activities. Net cash used by operating activities was $2.9 million and $1.9 million for the years ended December 31, 2024 and 2023, respectively.
This increase was due to a $3.5 million, or 23.8%, decrease in net interest and dividend income after provision for credit losses, a $2.9 million, or 326.0%, decrease in non-interest income and a $4.4 million increase in income tax expense, offset by a $740,000, or 4.4%, decrease in non-interest expense during the year ended December 31, 2023.
The decrease was due primarily to an increase in non-interest income of $5.9 million, a decrease in income tax expense of $3.4 million, a $388,000 increase in net interest and dividend income, a $260,000 decrease in (release) provision for credit losses and a decrease in non-interest expenses of $167,000 during the year ended December 31, 2024 compared to the year ended December 31, 2023.
At December 31, 2023 and 2022, we had $73.0 million and $99.4 million outstanding in advances from the FHLB, respectively, and the ability to borrow an additional $71.8 million and $36.5 million, respectively.
At December 31, 2024 and 2023, we had $52.3 million and $73.0 million outstanding in advances from the FHLB, respectively, and the ability to borrow an additional $94.0 million and $71.8 million, respectively. At December 31, 2024 and 2023, we had an overnight line of credit with the FHLB for up to $3.0 million.
Comparison of Financial Condition at December 31, 2023 and December 31, 2022 Total Assets. Total assets were $571.0 million as of December 31, 2023, an increase of $33.6 million, or 6.3%, when compared to total assets of $537.4 million at December 31, 2022. The increase was due primarily to increases in securities available-for-sale and net loans.
Total assets were $580.8 million as of December 31, 2024, an increase of $9.7 million, or 1.7%, when compared to total assets of $571.0 million at December 31, 2023. The increase was due primarily to increases in net loans and other assets offset by decreases in securities available-for-sale and in land, building and equipment, net.
The decrease was due primarily to a $15.8 million increase in securities available-for-sale, a $27.7 million increase in net loans and a $6.4 million decrease in borrowings, offset by $25.6 million of net proceeds from the stock offering in connection with the conversion of the former First Seacoast Bancorp, MHC and a $22.4 million increase in total deposits during the year ended December 31, 2023.
The increase was due primarily to a $49.4 million increase in total deposits and $7.4 million of proceeds from the sale of land, building and equipment, offset by an $8.8 million increase in net loans, a $40.7 million decrease in borrowings and $3.7 million of common stock repurchases during the year ended December 31, 2024. Available-for-Sale Securities.
Interest expense on borrowings increased $2.7 million, or 254.6%, to $3.7 million for the year ended December 31, 2023 from $1.0 million for the year ended December 31, 2022 primarily due to an increase in the average balance of borrowings and an increase in market interest rates.
Interest expense on borrowings consists of interest on advances from the Federal Home Loan Bank and the Federal Reserve Bank. Interest expense on borrowings increased $164,000, or 4.4%, to $3.9 million for the year ended December 31, 2024 from $3.7 million for the year ended December 31, 2023 primarily due to an increase in the average balance of borrowings.
For the Year Ended December 31, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans (4) $ 414,601 $ 16,896 4.08 % $ 385,202 $ 14,092 3.66 % Taxable debt securities 52,622 1,521 2.89 % 52,736 995 1.89 % Non-taxable debt securities 56,928 1,735 3.05 % 49,782 1,316 2.64 % Interest-bearing deposits with other banks 5,872 201 3.42 % 6,571 89 1.35 % Federal Home Loan Bank stock 2,820 237 8.40 % 2,733 118 4.32 % Total interest-earning assets 532,843 20,590 3.86 % 497,024 16,610 3.34 % Non-interest-earning assets 18,485 15,832 Total assets $ 551,328 $ 512,856 Interest-bearing liabilities: NOW and demand deposits $ 101,947 $ 402 0.39 % $ 112,504 $ 139 0.12 % Money market deposits 74,045 1,830 2.47 % 66,936 151 0.23 % Savings deposits 65,802 1,004 1.53 % 62,471 82 0.13 % Time deposits 77,406 2,095 2.71 % 55,129 311 0.56 % Total interest-bearing deposits 319,200 5,331 1.67 % 297,040 683 0.23 % Borrowings 78,839 3,709 4.70 % 63,916 1,046 1.64 % Other 1,894 40 2.13 % 1,864 18 0.97 % Total interest-bearing liabilities 399,933 9,080 2.27 % 362,820 1,747 0.48 % Non-interest-bearing deposits 76,533 92,576 Other noninterest-bearing liabilities 4,299 3,782 Total liabilities 480,765 459,178 Total equity 70,563 53,678 Total liabilities and equity $ 551,328 $ 512,856 Net interest income $ 11,510 $ 14,863 Net interest rate spread (1) 1.59 % 2.86 % Net interest-earning assets (2) $ 132,910 $ 134,204 Net interest margin (3) 2.16 % 2.99 % Average interest-earning assets as a percent of interest-bearing liabilities 133.23 % 136.99 % (1) 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.
For the Year Ended December 31, 2024 2023 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans (4) $ 433,244 $ 19,631 4.53 % $ 414,601 $ 16,896 4.08 % Taxable debt securities 74,944 3,398 4.53 % 52,622 1,521 2.89 % Non-taxable debt securities 49,920 1,712 3.43 % 56,928 1,735 3.05 % Interest-bearing deposits with other banks 8,872 459 5.17 % 5,872 201 3.42 % Federal Home Loan Bank stock 2,794 231 8.26 % 2,820 237 8.40 % Total interest-earning assets 569,774 25,431 4.46 % 532,843 20,590 3.86 % Non-interest-earning assets 12,384 18,485 Total assets $ 582,158 $ 551,328 Interest-bearing liabilities: NOW and demand deposits $ 95,786 $ 529 0.55 % $ 101,947 $ 402 0.39 % Money market deposits 78,147 2,557 3.27 % 74,045 1,830 2.47 % Savings deposits 73,411 1,867 2.54 % 65,802 1,004 1.53 % Time deposits 114,277 4,696 4.11 % 77,406 2,095 2.71 % Total interest-bearing deposits 361,621 9,649 2.67 % 319,200 5,331 1.67 % Borrowings 81,880 3,873 4.73 % 78,839 3,709 4.70 % Other 1,691 11 0.66 % 1,894 40 2.13 % Total interest-bearing liabilities 445,192 13,533 3.04 % 399,933 9,080 2.27 % Non-interest-bearing deposits 65,200 76,533 Other noninterest-bearing liabilities 7,042 4,299 Total liabilities 517,434 480,765 Total equity 64,724 70,563 Total liabilities and equity $ 582,158 $ 551,328 Net interest income $ 11,898 $ 11,510 Net interest rate spread (1) 1.42 % 1.59 % Net interest-earning assets (2) $ 124,582 $ 132,910 Net interest margin (3) 2.09 % 2.16 % Average interest-earning assets as a percent of interest-bearing liabilities 127.98 % 133.23 % (1) 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.
Available-for-Sale Securities. Available-for-sale securities increased by $15.8 million, or 14.9%, to $121.9 million at December 31, 2023 from $106.1 million at December 31, 2022.
Available-for-sale securities decreased by $1.6 million, or 1.3%, to $120.2 million at December 31, 2024 from $121.9 million at December 31, 2023.
Average interest-earning assets increased $35.8 million, or 7.2%, to $532.8 million for the year ended December 31, 2023 from $497.0 million for the year ended December 31, 2022. The weighted average yield on interest-earning assets increased 52 basis points to 3.86% for the year ended December 31, 2023 from 3.34% for the year ended December 31, 2022.
The weighted average yield on interest-earning assets increased 60 basis points to 4.46% for the year ended December 31, 2024 from 3.86% for the year ended December 31, 2023.
As of December 31, 2023: Net Portfolio Value ("NPV") NPV as Percent of Portfolio Value of Assets Basis Point ("bp") Change in Interest Rates Dollar Amount Dollar Change Percent Change NPV Ratio Change (Dollars in thousands) 400 bp $ 38,063 $ (29,082 ) (43.3 )% 8.4 % $ (434 ) 300 bp 45,307 (21,838 ) (32.5 ) 9.6 (310 ) 200 bp 52,710 (14,435 ) (21.5 ) 10.8 (194 ) 100 bp 60,749 (6,396 ) (9.5 ) 11.9 (78 ) 0 67,145 — — 12.7 — (100) bp 72,043 4,898 7.3 13.2 45 (200) bp 74,730 7,585 11.3 13.2 49 (300) bp 74,371 7,226 10.8 12.7 4 (400) bp 67,366 221 0.3 11.3 (141 ) As of December 31, 2022: Net Portfolio Value ("NPV") NPV as Percent of Portfolio Value of Assets Basis Point ("bp") Change in Interest Rates Dollar Amount Dollar Change Percent Change NPV Ratio Change (Dollars in thousands) 400 bp $ 64,978 $ (31,915 ) (32.9 )% 15.3 % $ (401 ) 300 bp 72,904 (23,989 ) (24.8 ) 16.4 (284 ) 200 bp 80,715 (16,178 ) (16.7 ) 17.5 (180 ) 100 bp 89,144 (7,749 ) (8.0 ) 18.5 (78 ) 0 96,893 — — 19.3 — (100) bp 102,856 5,963 6.2 19.6 37 (200) bp 106,776 9,883 10.2 19.6 35 (300) bp 107,095 10,202 10.5 19.0 (29 ) (400) bp 99,984 3,091 3.2 17.3 (199 ) Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements.
As of December 31, 2024: Net Portfolio Value ("NPV") NPV as Percent of Portfolio Value of Assets Basis Point ("bp") Change in Interest Rates Dollar Amount Dollar Change Percent Change NPV Ratio Change (Dollars in thousands) 400 bp $ 41,552 $ (32,138 ) (43.6 )% 8.9 % $ (477 ) 300 bp 50,126 (23,564 ) (32.0 ) 10.3 (332 ) 200 bp 58,086 (15,604 ) (21.2 ) 11.6 (210 ) 100 bp 66,471 (7,219 ) (9.8 ) 12.7 (90 ) 0 73,690 — — 13.6 — (100) bp 79,465 5,775 7.8 14.2 59 (200) bp 82,581 8,891 12.1 14.4 72 (300) bp 83,028 9,338 12.7 14.1 41 (400) bp 79,737 6,047 8.2 13.2 (45 ) As of December 31, 2023: Net Portfolio Value ("NPV") NPV as Percent of Portfolio Value of Assets Basis Point ("bp") Change in Interest Rates Dollar Amount Dollar Change Percent Change NPV Ratio Change (Dollars in thousands) 400 bp $ 38,063 $ (29,082 ) (43.3 )% 8.4 % $ (434 ) 300 bp 45,307 (21,838 ) (32.5 ) 9.6 (310 ) 200 bp 52,710 (14,435 ) (21.5 ) 10.8 (194 ) 100 bp 60,749 (6,396 ) (9.5 ) 11.9 (78 ) 0 67,145 — — 12.7 — (100) bp 72,043 4,898 7.3 13.2 45 (200) bp 74,730 7,585 11.3 13.2 49 (300) bp 74,371 7,226 10.8 12.7 4 (400) bp 67,366 221 0.3 11.3 (141 ) Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements.
Home equity loans and lines of credit increased $3.9 million, or 38.7%, to $14.1 million at December 31, 2023 from $10.2 million at December 31, 2022. Multi-family real estate loans decreased $604,000, or 7.4%, to $7.6 million at December 31, 2023 from $8.2 million at December 31, 2022.
Commercial and industrial loans decreased $1.8 million, or 7.1%, to $23.7 million at December 31, 2024 from $25.5 million at December 31, 2023. Home equity loans and lines of credit increased $6.8 million, or 48.4%, to $20.9 million at December 31, 2024 from $14.1 million at December 31, 2023.
The decrease in non-interest income during the year ended December 31, 2023 was due primarily to a $3.4 million, or 458.6%, increase in losses realized on the sale of securities, a decrease of $280,000, or 27.0%, in customer service fees and a decrease of $49,000, or 38.9%, in loan servicing fee income offset by an $849,000 gain on termination of interest rate swaps.
The increase in non-interest income during the year ended December 31, 2024 was due primarily to a one-time $2.5 million gain on the sale of land and buildings and a $4.2 million, or 100.2%, decrease in losses realized on the sale of securities, as compared to an $849,000 gain on termination of interest rate swaps recognized during the year ended December 31, 2023.
Acquisition, development and land loans decreased $970,000, or 5.2%, to $17.5 million at December 31, 2023 from $18.5 million at December 31, 2022. Commercial and industrial loans increased $1.5 million, or 6.0%, to $25.5 million at December 31, 2023 from $24.1 million at December 31, 2022.
Commercial real estate mortgage loans decreased $546,000, or 0.6%, to $86.0 million at December 31, 2024 from $86.6 million at December 31, 2023. Acquisition, development and land loans decreased $2.6 million, or 14.7%, to $14.9 million at December 31, 2024 from $17.5 million at December 31, 2023.

… 64 more changes not shown on this page.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

1 edited+0 added−0 removed0 unchanged
Biggest changeITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 31 ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk 45 ITEM 8. Financial Statements and Supplementary Data 46 ITEM 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 92 ITEM 9A. Controls and Procedures 92 ITEM 9B. Other Information 92
Biggest changeITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 30 ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk 43 ITEM 8. Financial Statements and Supplementary Data 44 ITEM 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 94 ITEM 9A. Controls and Procedures 94 ITEM 9B. Other Information 94

Other FSEA 10-K year-over-year comparisons