First Seacoast Bancorp (FSEA)

First Seacoast Bancorp: A Comprehensive Overview

Company Profile:

History and Background:

First Seacoast Bancorp (NASDAQ: FSEA), headquartered in Portsmouth, New Hampshire, is the parent company of First Seacoast Bank, a leading community bank in the northeastern United States. The bank was founded in 1890 and has grown to operate 14 branch locations throughout New Hampshire, Maine, and Massachusetts.

Core Business Areas:

First Seacoast Bank offers a wide range of financial services to individuals, families, and businesses, including:

• Checking and savings accounts
• Mortgages and home equity loans
• Commercial loans and lines of credit
• Investment services
• Private banking

Leadership Team and Corporate Structure:

First Seacoast Bancorp is led by a seasoned team of executives with extensive experience in the banking industry. The current leadership team includes:

• **President and CEO: John C. Cretien
• **Executive Vice President, Chief Operating Officer: Kathleen D. Reardon
• **Executive Vice President, Chief Financial Officer: Robert E. Clifford

The company operates under a traditional corporate structure with a Board of Directors responsible for overseeing the bank's strategic direction.

Top Products and Market Share:

Top Products:

• Deposits: First Seacoast Bank is a leading provider of deposit accounts in its market area, offering various checking and savings options to meet diverse customer needs.
• Mortgage Loans: The bank is a significant player in the mortgage lending market, catering to first-time homebuyers, existing homeowners looking to refinance, and investors.
• Commercial Loans: First Seacoast offers various commercial loan products to support businesses of all sizes and industries.

Market Share:

• Deposits: First Seacoast Bank holds a market share of approximately 3.5% in the deposits market within its primary service area.
• Mortgage Loans: The bank has a market share of about 4.5% in the mortgage origination market in its operating region.
• Commercial Loans: The bank's market share in the commercial loan market is approximately 2.2%.

Comparison against Competitors:

First Seacoast Bank competes with larger regional banks and smaller community banks. Its competitive advantage lies in its personalized service, focus on local communities, and strong customer relationships. However, it faces challenges from larger competitors with more extensive product offerings and broader reach.

Total Addressable Market:

First Seacoast Bancorp operates in the US banking industry, a vast market with an estimated total addressable market of over $22 trillion in assets. The community banking segment, where First Seacoast primarily operates, represents a significant portion of this overall market.

Financial Performance:

Recent Financial Statements:

• Revenue: First Seacoast Bancorp's total revenue for the year ended December 31, 2022, was $76.1 million, a 9.3% increase from the previous year.
• Net Income: The bank's net income for the same period was $16.5 million, representing a 12.4% increase year-over-year.
• Profit Margins: The bank's net profit margin for 2022 was 21.7%, indicating efficient cost management and profitability.
• Earnings per Share (EPS): The bank's diluted EPS for 2022 was $1.32, a 12.2% increase from 2021.

Year-over-Year Comparison:

First Seacoast Bancorp has demonstrated consistent financial performance in recent years, with steady growth in revenue, net income, and EPS. The bank's efficiency and profitability metrics remain strong, indicating a healthy financial position.

Cash Flow and Balance Sheet Health:

The bank maintains a healthy cash flow position and a strong balance sheet. Its capital ratios consistently exceed regulatory requirements, demonstrating its financial stability and ability to support future growth.

Dividends and Shareholder Returns:

Dividend History: First Seacoast Bancorp has a consistent dividend payout history. The current annual dividend is $0.64 per share, representing a yield of approximately 2.8%. Shareholder Returns: Over the past five years, First Seacoast Bancorp's total shareholder return has been approximately 65%, outperforming the broader market.

Growth Trajectory:

Historical Growth: Over the past five years, First Seacoast Bancorp has experienced consistent growth in its earnings, assets, and deposits. The bank has expanded its branch network and introduced new products, contributing to its success.

Future Projections: The bank projects continued moderate growth in the coming years, driven by organic loan and deposit growth and strategic acquisitions.

Growth initiatives: First Seacoast is actively pursuing strategic initiatives to fuel growth, including:

• Expanding its loan portfolio in targeted markets.
• Introducing new digital banking services.
• Building stronger relationships with local businesses.

Market Dynamics:

The US banking industry is undergoing significant transformations driven by technological advancements, changing customer preferences, and regulatory reforms. Community banks like First Seacoast face challenges from larger institutions and technology companies entering the financial services space. However, the bank is well-positioned to adapt and remain competitive by focusing on personalized service, community involvement, and digital innovation.

Competitors:

Key competitors of First Seacoast Bancorp include:

• Eastern Bankshares, Inc. (NASDAQ: EBC)
• Citizens Financial Group, Inc. (NYSE: CFG)
• TD Bank Group (NYSE: TD)
• Bank of America Corporation (NYSE: BAC)

Key Challenges and Opportunities:

Challenges:

• Competition from larger financial institutions
• Regulatory changes
• Technological advancements
• Economic uncertainty

Opportunities:

• Expanding into new markets
• Introducing innovative financial products
• Building strategic partnerships
• Leveraging technology to enhance customer experience

Recent Acquisitions:

First Seacoast has not made any acquisitions in the past three years.