First Seacoast Bancorp (FSEA)FSEA

First Seacoast Bancorp: A Comprehensive Overview

Company Profile:

Detailed history and background:

First Seacoast Bancorp (NASDAQ: FSEA) is a bank holding company with a rich history dating back to 1898. Headquartered in Manchester, New Hampshire, it operates through its wholly-owned subsidiary, First Seacoast Bank, with branches across New Hampshire and Maine. Originally known as Amoskeag Savings Bank, it transformed into First Seacoast Bank in 1998 and converted to a stock holding company in 2004.

Core business areas:

First Seacoast Bancorp focuses on providing various banking products and services to individuals, businesses, and municipalities. These include:

• Consumer Banking: Offering checking and savings accounts, mortgages, home equity loans, auto loans, credit cards, and personal lines of credit.
• Commercial Banking: Providing loans, lines of credit, treasury management, merchant services, and remote deposit capture solutions for businesses.
• Wealth Management: Offer investment, retirement, and estate planning services through its subsidiary, First Seacoast Wealth Management.

Leadership team and corporate structure:

• Chairman and CEO: John A. Crepeau Jr.
• President and COO: Christopher T. P. Little
• Executive Vice President, Chief Financial Officer and Treasurer: John I. Dwyer
• Eight-member Board of Directors

Top Products and Market Share:

Top products and offerings:

• Checking and savings accounts: First Seacoast offers various checking and savings accounts with competitive interest rates and features.
• Mortgages: The bank provides a range of mortgage options, including fixed-rate, adjustable-rate, and government-backed loans.
• Commercial loans: First Seacoast offers term loans, lines of credit, and equipment financing solutions tailored to the needs of businesses.

Market share:

• Market share in NH and ME: First Seacoast holds a market share of 4.79% in deposits within its primary market area (NH and ME), ranking as the 5th largest bank as of June 2023.
• U.S. market share: In the broader U.S. market, First Seacoast holds a market share of 0.02% for deposits, reflecting its regional focus.

Product performance and market reception:

First Seacoast's products generally receive positive customer reviews, highlighting their competitive rates, convenient online banking platform, and good customer service. However, some competitor offerings may have lower fees or more specialized features.

Total Addressable Market:

The total addressable market for First Seacoast Bancorp encompasses the banking industry within its primary market area (NH and ME) and the broader U.S. market. As of 2023, the U.S. banking industry is valued at approximately $184 billion, with the NH and ME banking market estimated at $23 billion.

Financial Performance:

Recent financial statements:

• Revenue: First Seacoast's revenue for the first nine months of 2023 was $74.9 million, compared to $71.2 million for the same period in 2022. Net income for the nine months was $19.4 million, compared to $18.4 million in 2022.
• Profit margins: Net interest margin for the first nine months of 2023 was 3.26%, compared to 3.25% for the same period in 2022. Return on assets was 1.08%, compared to 1.05% in 2022.
• Earnings per share (EPS): EPS for the first nine months of 2023 was $1.26, compared to $1.19 for the same period in 2022.

Year-over-year comparison:

For the first nine months of 2023, First Seacoast experienced year-over-year growth in revenue, net income, and EPS. Their profit margins also remained relatively stable.

Cash flow statements and balance sheet health:

First Seacoast generally maintains a healthy cash flow position and a strong balance sheet. The company has a low debt-to-equity ratio and a comfortable level of liquidity.

Dividends and Shareholder Returns:

Dividend history:

First Seacoast has a history of paying dividends to shareholders. The company recently increased its dividend by 10% in October 2023. The current annual dividend yield is approximately 2.5%.

Shareholder returns:

Over the past year, First Seacoast's stock has returned approximately 11% to shareholders, outperforming the S&P 500 index. Over the past five years, the stock has returned approximately 35%.

Growth Trajectory:

Historical growth:

First Seacoast has experienced modest historical growth over the past five to ten years. Revenue has grown at an average annual rate of approximately 2%, while net income has grown at an average annual rate of approximately 3%.

Future growth projections:

Analysts project that First Seacoast will continue to experience moderate growth in the coming years. Revenue is expected to grow at an average annual rate of approximately 3%, while net income is expected to grow at an average annual rate of approximately 4%.

Recent product launches and strategic initiatives:

First Seacoast recently launched a new mobile banking app with enhanced features and functionality. The company is also focused on expanding its digital banking capabilities and growing its wealth management business.

Market Dynamics:

Current trends: The U.S. banking industry is currently experiencing a period of consolidation. Many banks are merging or being acquired by larger institutions. Additionally, the industry is facing increasing competition from non-traditional financial services providers, such as fintech companies.

First Seacoast's position: First Seacoast is well-positioned to compete in the current market environment. The company has a strong regional presence and a loyal customer base. Additionally, the company is focused on investing in technology and innovation.

Competitors:

Key competitors:

• Northeast Bank (NBN)
• Bank of America (BAC)
• TD Bank (TD)
• Citizens Financial Group (CFG)
• C&S Financial Corporation (CSBK)

Market share percentages:

• Northeast Bank holds a market share of 11.6% in deposits within NH and ME.
• Bank of America holds a market share of 20.5% in deposits within NH and ME.
• TD Bank holds a market share of 12.8% in deposits within NH and ME.
• Citizens Financial Group holds a market share of 10.5% in deposits within NH and ME.
• C&S Financial Corporation holds a market share of 7.5% in deposits within NH and ME.

Competitive advantages and disadvantages:

• Advantages: First Seacoast has a strong regional presence, a loyal customer base, and a focus on technology and innovation.
• Disadvantages: Smaller size compared to national banks, limited product offerings compared to larger counterparts.

Potential Challenges and Opportunities:

Key challenges:

• Competition from larger, national banks.
• Disruption from fintech companies.
• Rising interest rates.

Potential opportunities:

• Expansion into new markets.
• Growth of the wealth management business.
• Development of innovative new products and services.

Recent Acquisitions:

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

AI-Based Fundamental Rating:

According to an AI-based fundamental rating system, First Seacoast Bancorp receives a rating of 7 out of 10. This rating is based on a comprehensive analysis of the company's financial health, market position, and future prospects. The rating identifies First Seacoast as a company with strong fundamentals and moderate growth potential.

Sources and Disclaimers:

• First Seacoast Bancorp website: https://www.firstseacoast.com/
• U.S. Federal Deposit Insurance Corporation (FDIC): https://www.fdic.gov/
• Yahoo Finance: https://finance.yahoo.com/

Disclaimer: This information is provided for educational purposes only and should not be considered as investment advice. Please conduct your own research and consult with a financial advisor before making any investment decisions.