First Seacoast Bancorp Reports Improved Net Loss of $603,000 for Q1 2025

First Seacoast Bancorp, Inc. reported a net loss of $603,000 for the three months ended March 31, 2025, a significant improvement compared to a net loss of $1.2 million during the same period in 2024. This reduction in losses was attributed to an increase in net interest and dividend income, which rose by $288,000 to $3.2 million, and a decrease in income tax expense of $391,000. Total interest and dividend income increased by 6.0% to $6.4 million, driven by higher interest and fees on loans, which rose to $5.0 million from $4.7 million. The company’s total non-interest income also saw an increase of 18.2%, reaching $351,000, primarily due to higher customer service fees and investment services fees.

In terms of operational metrics, First Seacoast Bancorp's total assets increased by 2.0% to $592.6 million as of March 31, 2025, compared to $580.8 million at the end of 2024. This growth was largely fueled by a $9.6 million increase in net loans, which totaled $445.1 million, and a $3.3 million rise in available-for-sale securities, which reached $123.5 million. The company originated $7.8 million in loans during the quarter, while also purchasing $1.5 million in participation interests in commercial loans. The allowance for credit losses on loans remained stable at $3.5 million.

Strategically, First Seacoast Bancorp has focused on diversifying its loan portfolio, with notable increases in commercial real estate and commercial and industrial loans. The company’s total deposits slightly decreased to $454.1 million, primarily due to a decline in retail deposits, although commercial deposits increased. The bank has also been active in managing its capital structure, with total stockholders' equity decreasing by 1.3% to $61.2 million, influenced by the net loss and treasury stock repurchases totaling $574,000.

Looking ahead, First Seacoast Bancorp remains committed to enhancing its liquidity and capital position while navigating the challenges posed by fluctuating interest rates. The company has implemented strategies to manage interest rate risk, including the use of interest rate swaps and a focus on higher-yielding loan products. Management anticipates that these efforts will support future growth and profitability, despite the potential for economic volatility and changes in market conditions.