First Seacoast Bancorp (FSEA)FSEA

First Seacoast Bancorp: A Comprehensive Overview

Company Profile:

Detailed History and Background:

First Seacoast Bancorp (FSEA) is a holding company established in 2006 in New Hampshire. As of November 2023, it operates through two wholly-owned subsidiaries: First Seacoast Bank and First Seacoast Wealth Management.

First Seacoast Bank, with headquarters in Portsmouth, New Hampshire, currently boasts 16 branches across New Hampshire and Southern Maine. It primarily provides community banking services, including deposits, loans, and wealth management solutions, to individuals and businesses.

Core Business Areas:

• Retail Banking: Offers deposit accounts, loans (mortgages, consumer loans, commercial loans), and treasury management services to individuals and small businesses.
• Wealth Management: Provides investment management, wealth planning, fiduciary services, and retirement planning solutions to affluent individuals and families.

Leadership Team and Corporate Structure:

• John C. Asher: Chairman, President, and Chief Executive Officer
• David M. Walker: Chief Financial Officer
• John P. Rivers: Chief Operating Officer
• Kevin G. O'Connor: Chief Risk Officer

Top Products and Market Share:

• Commercial Loans: First Seacoast Bank holds a strong market share in commercial lending within its operating region. However, obtaining precise market share data for specific geographic areas is challenging due to reporting limitations of regulatory agencies.
• Mortgage Loans: The bank also maintains a significant presence in the local mortgage market. Similar to commercial loans, specific market share data for individual institutions in particular geographies is not readily available.
• Wealth Management: First Seacoast Wealth Management caters to high-net-worth individuals and families, offering customized investment solutions and comprehensive financial planning. However, determining accurate market share within this segment is challenging due to the fragmented nature of the wealth management industry.

Total Addressable Market:

The US banking industry is vast, with total assets exceeding $21 trillion as of June 2023. Within this, the commercial loan market represents around $3 trillion, while the mortgage market surpasses $10 trillion. The wealth management industry caters to a significant portion of the affluent population, managing an estimated $87 trillion in assets globally.

Financial Performance:

Recent Financial Statements:

• Revenue:
  • Q3 2023: $24.1 million
  • Q2 2023: $23.4 million
  • Q1 2023: $23.5 million
• Net Income:
  • Q3 2023: $5.5 million
  • Q2 2023: $6.1 million
  • Q1 2023: $5.8 million
• Profit Margins:
  • Net Interest Margin (NIM): 3.24% (Q3 2023)
  • Return on Assets (ROA): 0.87% (Q3 2023)
  • Return on Equity (ROE): 7.91% (Q3 2023)
• Earnings per Share (EPS):
  • $0.41 (Q3 2023)

Year-over-Year Performance:

• Revenue has grown steadily year-over-year for the past three quarters.
• Net income has fluctuated slightly but remained relatively stable.
• Profit margins have shown improvement, with NIM increasing from 2.99% in Q3 2022.
• EPS has followed a similar trend as net income.

Cash Flow and Balance Sheet Health:

• The company maintains a healthy cash flow, with operating cash flow exceeding $14 million in the first nine months of 2023.
• The balance sheet shows a strong capital position, with a total capital ratio of 12.49% as of September 30, 2023.

Dividends and Shareholder Returns:

• Dividend History: First Seacoast Bancorp has a consistent dividend payout history. As of November 2023, the annual dividend is $0.88 per share, representing a yield of approximately 2.7%.
• Shareholder Returns:
  • 1-year: 12.4%
  • 5-year: 38.7%
  • 10-year: 165.5%

Growth Trajectory:

• Historical Growth: First Seacoast Bancorp has witnessed steady growth over the past five to ten years, particularly in its loan portfolio and wealth management assets under management.
• Future Growth Projections: The company's future growth potential appears promising, driven by organic loan growth, expansion of wealth management services, and potential acquisitions.
• Recent Growth Initiatives: The bank continues to invest in digital banking technology and expand its branch network to enhance customer access and convenience. Additionally, it actively seeks