Breaking Down First Seacoast Bancorp, Inc. (FSEA) Financial Health: Key Insights for Investors

You're looking at First Seacoast Bancorp, Inc. (FSEA) and seeing a regional bank navigating a tough interest rate environment, so the question is whether the recent quarterly rebound signals a true turn or just a blip. Honestly, the financials show a mixed picture that demands a closer look: while the company managed to post a $390 thousand net income in the third quarter of 2025, that doesn't erase the year-to-date net loss of roughly $(0.76) million. The balance sheet remains solid, with total assets expanding to $609.6 million and a loan portfolio of $433.5 million as of the most recent filing. Still, investors need to understand how the improved net interest and dividend income of $3.45 million for the quarter will hold up against rising non-interest expenses and the lingering impact of that earlier loss per share of $(0.18). We defintely need to map the risks in their real estate-heavy loan book against the opportunities in their $54.08 million market cap.

Revenue Analysis

If you're looking at First Seacoast Bancorp, Inc. (FSEA), the direct takeaway is this: their core banking revenue is growing, but the headline number for total revenue is down year-over-year. You need to look past the top-line drop to see the underlying strength in their main business line.

For the first nine months of the 2025 fiscal year, the company's total revenue was approximately $11.40 million. This is a decline of about 8.5% from the same period in 2024, but that drop is entirely due to a one-time event last year. When you break down the sources, you see the real story: the bank's primary engine is performing well, which is exactly what you want to see from a community bank.

Primary Revenue Streams and Core Growth

As a bank holding company, First Seacoast Bancorp, Inc.'s revenue is split into two main components: Net Interest and Dividend Income (NII) and Non-Interest Income. NII is the money they make from loans and investments minus the interest they pay out on deposits and borrowings. This is the core operating revenue, and it's where the good news is.

Here's the quick math on the nine-month performance ending September 30, 2025:

• Net Interest and Dividend Income (NII) was $10.05 million.
• This NII figure is up a solid 13.0% from the $8.90 million they posted in the same period a year ago.
• The growth is defintely driven by higher interest on debt securities and improved interest margins (the net interest margin for the nine months improved to 2.30% from 2.10%).

The company operates as a single reportable segment, 'Banking Services,' so this NII growth confirms the health of their core lending and deposit-taking operations.

The Non-Interest Income Caveat

The total revenue decline stems from the Non-Interest Income segment, which was $1.35 million for the first nine months of 2025. This is down a significant $2.21 million year-over-year. Honestly, this isn't a red flag, but a necessary adjustment to a non-recurring gain (a one-off boost) they had in 2024.

Last year's number was inflated by a substantial gain on the sale of land and buildings, which was a $2.52 million benefit. Without that non-core gain, the 2025 Non-Interest Income actually looks relatively stable. The bank is working to increase customer fee income, with new recommendations being implemented in early 2025, plus their wealth management division is continuing to grow assets under management.

Revenue Contribution Breakdown (YTD 2025)

This table shows you how much each stream contributes to the total revenue, which is crucial for understanding the business model. The core banking function, Net Interest and Dividend Income, is overwhelmingly dominant.

The key action for you is to focus on the 13.0% growth in NII. That's a strong indicator of an effective interest rate strategy and a healthy loan portfolio, which you can read more about in the full analysis: Breaking Down First Seacoast Bancorp, Inc. (FSEA) Financial Health: Key Insights for Investors.

Profitability Metrics

You're looking for a clear picture of First Seacoast Bancorp, Inc.'s (FSEA) earning power, and the near-term data shows a business fighting to stabilize its bottom line. The direct takeaway is that while the core Net Interest Income (NII) is up, increasing non-interest expenses are pushing the company into a recent operating loss, making profitability a serious concern for investors right now.

For a bank, we swap traditional Gross Profit for Net Interest Income (NII), which is the money earned from loans and investments minus the interest paid on deposits and borrowings. For the nine months ended September 30, 2025, First Seacoast Bancorp reported a Net Interest and Dividend Income of $10.05 million, up from the prior year period, which is a good sign for the core lending business. But still, the overall picture is challenging.

Here's the quick math on the most recent quarter, Q3 2025, which tells the real story of operational efficiency (or lack thereof):

• Net Interest Income (NII): $3.45 million
• Non-Interest Income: $0.544 million (from fees, etc.)
• Total Non-Interest Expense: $4.19 million

When you put those pieces together, the approximate Operating Profit (NII + Non-Interest Income - Non-Interest Expense) for Q3 2025 was a loss of approximately $(0.196) million. That translates to an Operating Margin of roughly -4.91% for the quarter. This is defintely a red flag-it means the bank's operating costs are higher than its total revenue before taxes and other non-operating items.

The trend in profitability is volatile. For the first nine months of 2025, the company reported a Net Loss of $(0.76) million, a sharp reversal from the net income posted in the prior year period. This reversal was largely driven by those increased non-interest expenses, which is a cost management issue. The reported quarterly Net Profit Margin has been negative, sitting around -9.05% recently, which signals the company is unprofitable on a margin basis.

To be fair, the company did post a Q3 2025 Net Income of $390 thousand, which was a return to quarterly profitability, but the nine-month loss still overshadows that. You need to look at the efficiency ratio (non-interest expense as a percentage of total revenue) to see how well they're managing costs. An optimal target is typically below 60%. While the 2024 efficiency ratio was 64.3%, the recent rise in non-interest expenses suggests this metric is worsening in 2025, moving further away from the peer median of 65.54%.

Here's how First Seacoast Bancorp stacks up against the broader industry as of Q2 2025. This comparison shows the gap FSEA needs to close:

The NIM from 2024 was competitive, but the negative ROA (Return on Assets) and Net Profit Margin in 2025 show that the interest income is not enough to cover the operating and non-operating costs. This profitability struggle is why analysts currently hold a consensus Sell rating on FSEA. If you want to dig deeper into who is still buying, you can check out Exploring First Seacoast Bancorp, Inc. (FSEA) Investor Profile: Who's Buying and Why?

Next Step: Management: Outline a plan to reduce non-interest expenses by 10% in the next quarter to bring the efficiency ratio back under 70%.

Debt vs. Equity Structure

You need to know how First Seacoast Bancorp, Inc. (FSEA) funds its operations because a company's debt-to-equity mix directly maps to its risk profile and future flexibility. The takeaway is clear: First Seacoast Bancorp, Inc. relies on a balanced capital structure, but its debt-to-equity ratio of 0.97 is significantly higher than the regional bank average, which flags a higher reliance on borrowed funds. [cite: 2 in step 1, 7]

As of the third quarter of 2025, First Seacoast Bancorp, Inc.'s balance sheet shows total stockholders' equity at $63.16 million. This equity base supports total borrowings, largely from the Federal Home Loan Bank (FHLB), which stood at $59.0 million as of June 30, 2025. This is a critical metric because, unlike non-financial companies, banks inherently use more debt (deposits and borrowings) to fuel their core lending business-it is how they make money.

Debt-to-Equity Ratio: A Higher Leveraged Position

The debt-to-equity (D/E) ratio is your quick measure of financial leverage (the use of borrowed money to increase potential returns). First Seacoast Bancorp, Inc. reports a D/E ratio of 0.97. [cite: 2 in step 1] This means for every dollar of shareholder equity, the company has about 97 cents in debt. While a D/E ratio under 1.5 is often considered healthy for most industries, you must compare it to peers. The average D/E for US Regional Banks in November 2025 is closer to 0.5. Honestly, First Seacoast Bancorp, Inc.'s ratio is nearly double that industry benchmark, indicating a more aggressive use of leverage to fund its loan and investment portfolio.

Here's the quick math on the key components as of the 2025 fiscal year data:

Recent Financing and Credit Risk

First Seacoast Bancorp, Inc. balances its capital needs primarily through debt financing, specifically Federal Home Loan Bank (FHLB) advances and deposits. The company is defintely active in managing its short-term and long-term debt. For instance, the company utilized the Federal Reserve's Bank Term Funding Program and has a $25.0 million long-term FHLB advance that is callable in December 2025. [cite: 13 in step 1] This callable feature adds a layer of near-term refinancing risk you should monitor, especially in a fluctuating interest rate environment.

The company's reliance on FHLB and short-term advances, evidenced by net payments on short-term FHLB advances during the nine months ended September 30, 2025, shows a tactical approach to liquidity management. [cite: 3 in step 1] However, the overall financial health assessment remains cautious. Weiss Ratings reaffirmed a 'Sell (D-)' rating on the stock in October 2025, which reflects concerns about the company's profitability and capital strength despite the balanced D/E ratio. [cite: 2 in step 1] The firm's negative return on equity of -4.02% for the quarter ended September 30, 2025, further complicates the picture. [cite: 2 in step 1]

The balance of debt and equity is a constant tightrope walk. For a deeper dive into the profitability and asset quality that underpin this capital structure, you can read the full analysis at Breaking Down First Seacoast Bancorp, Inc. (FSEA) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know if First Seacoast Bancorp, Inc. (FSEA) has the cash to cover its short-term obligations, and the quick answer is yes, but with a structural shift in its funding mix that warrants attention. The Bank's regulatory capital is strong, but its liquidity position is being actively managed through a reliance on more expensive funding sources like time deposits and Federal Home Loan Bank (FHLB) advances, which is a common trend in the current interest rate environment.

For a bank, traditional liquidity metrics like the Current Ratio and Quick Ratio are less indicative than for a manufacturing company, because a bank's primary liability is customer deposits, which are its 'inventory.' Still, the firm's reported Quick Ratio and Current Ratio are both around 0.94. This ratio, which compares highly liquid assets (like cash and investment securities) to short-term liabilities, is near parity, suggesting a solid, though not excessive, cushion of immediately available funds against near-term non-deposit liabilities.

Analysis of Working Capital Trends

Working capital, or current assets minus current liabilities, is being actively managed to support loan growth. The key trend here is the shift in the deposit base. As of June 30, 2025, First Seacoast Bancorp, Inc.'s core deposits (non-time deposits, which are cheaper and stickier) decreased by $8.7 million, or 2.7%, to $309.8 million.

To offset this, the Bank saw a significant increase in higher-cost time deposits (Certificates of Deposit), which rose by $26.7 million in the first half of 2025. This strategy helps fund the balance sheet expansion, which saw Total Assets grow to $609.6 million by the third quarter of 2025. The company's liquid assets (unconsolidated basis) stood at $16.2 million as of June 30, 2025. That's a tight number, but it's supplemented by other funding lines.

Cash Flow Statements Overview

Looking at the cash flow statement for the first half of 2025 shows where the funding is coming from and going. The Bank is using a combination of deposits and borrowings to fuel its growth and operations.

• Operating Cash Flow: For the nine months ended September 30, 2025, the company recorded a Net Loss of $0.758 million. This loss, while not the direct cash flow from operations, signals pressure on the core business earnings, mainly due to the higher cost of funding deposits in the inverted yield curve environment.
• Investing Cash Flow: The Bank executed a leveraged transaction, purchasing securities available-for-sale, which was funded by brokered deposits. This is a strategic move to reposition the balance sheet and improve asset yields, but it uses up cash for investing.
• Financing Cash Flow: This is a major source of cash. Net cash provided by financing activities was a strong $23.9 million for the six months ended June 30, 2025. This cash came primarily from the net increase in deposits and FHLB advances, minus treasury stock repurchases. This is a good sign that external funding is readily available.

Here's the quick math: they're borrowing more expensively to buy assets that yield a better return, a strategy that carries interest rate risk. For a deeper dive into who is buying the stock, you can read Exploring First Seacoast Bancorp, Inc. (FSEA) Investor Profile: Who's Buying and Why?

Potential Liquidity Concerns and Strengths

The biggest strength is capital. First Seacoast Bank remains 'well-capitalized,' exceeding all regulatory capital requirements as of June 30, 2025. This regulatory cushion is crucial for investor confidence. Their commitment to maintaining a strong liquidity position is defintely stated by management, who anticipate sufficient funds to meet all current funding commitments.

The primary concern is the funding mix shift. Relying on higher-cost time deposits and FHLB advances over cheaper core deposits increases the bank's cost of funds, directly squeezing the net interest margin (NIM). This is the cost of doing business in a high-rate environment, and it's why the firm is actively trying to increase core deposits while using wholesale funding to support loan growth.

Next Step: Start modeling the impact of a 50-basis-point increase in the cost of funds on the Net Interest Margin (NIM) to stress-test their earnings power.

Valuation Analysis

You want to know if First Seacoast Bancorp, Inc. (FSEA) is overvalued or undervalued right now. The quick answer is that traditional bank valuation metrics suggest it is trading at a discount to its book value, but its negative earnings make the stock look expensive on a Price-to-Earnings (P/E) basis. It's a classic value trap signal, so you need to look closer.

As of November 2025, the market is pricing First Seacoast Bancorp, Inc. at a discount to its tangible assets, but the lack of consistent profitability is a major red flag. The stock recently traded around $11.68 per share, near its 52-week high of $11.95. Here's the quick math on the key valuation multiples:

• Price-to-Earnings (P/E) Ratio: The trailing P/E ratio is a negative -20.80. This is because the company reported a net loss of $758 thousand for the first nine months of the 2025 fiscal year, despite a profitable third quarter. A negative P/E means the company is currently unprofitable on a trailing 12-month basis, which makes the stock technically look infinitely expensive.
• Price-to-Book (P/B) Ratio: The P/B ratio stands at 0.90. This is a key metric for banks, and trading below 1.0 suggests the stock is undervalued relative to the accounting value of its assets. The book value per share is approximately $12.92.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric is not a standard or readily available valuation tool for a bank like First Seacoast Bancorp, Inc. because banks' core value comes from their loan portfolios and deposits, not just operating earnings before interest, taxes, depreciation, and amortization (EBITDA).

The stock is cheap on a P/B basis, but that discount is there for a defintely good reason: the P/E is negative. You need to understand why the market is giving you a discount on the book value.

Over the last 12 months, the stock has shown significant price appreciation, with a price return of +26.5%, notably outperforming the S\&P 500 (SPY) return of +13.9% over the same period. The 52-week range has been between a low of $9.00 and a high of $11.95, showing a steady climb toward the top end of its recent trading history.

The company does not currently pay a dividend, so both its dividend yield and payout ratios are 0%. This is common for smaller banks focused on retaining capital to grow their balance sheet.

Wall Street analysts are clear on their current stance. The consensus rating for First Seacoast Bancorp, Inc. is a collective Sell rating. Out of the analysts covering the stock, 1 has issued a Sell rating, with no Buy or Hold ratings. This strong consensus suggests the market's discount on the P/B ratio is not enough to offset the risks associated with the negative earnings and overall financial performance. For a deeper dive into who is buying despite this consensus, you can read Exploring First Seacoast Bancorp, Inc. (FSEA) Investor Profile: Who's Buying and Why?

What this estimate hides is the potential for a turnaround, as the company did report Q3 2025 net income of $0.39 million (diluted EPS of $0.08), which is a positive step compared to the prior year. Still, you must weigh the P/B discount against the clear lack of consistent profitability and the unanimous Sell rating.

Risk Factors

You need to look beyond First Seacoast Bancorp, Inc.'s (FSEA) recent quarterly net income of $390,000 for Q3 2025. While that looks good on the surface, the year-to-date (YTD) net loss of $(758,000) tells a clearer story of core operational weakness, which is a $1.7 million deterioration from the prior year's net income. Your biggest near-term risks here are interest rate sensitivity and a funding structure that is getting more expensive.

The most pressing internal risk is the bank's exposure to interest rate movements. Here's the quick math: under a simulated 200 basis point (2.00%) rate shock, the bank's Net Portfolio Value (NPV) is projected to decrease by 20.9%. That 0.9 percentage point breach of the bank's internal 20% policy limit is a red flag for the board and regulators. It signals a structural vulnerability that could quickly erode shareholder equity, which currently stands at $63.2 million.

Operational and financial risks are also tightly linked to the bank's funding and lending strategy. The inability to generate organic loan growth is forcing reliance on non-core funding. Net loans decreased by $5.5 million (1.3%) YTD, which is a problem for a community bank. This lack of growth is coupled with an elevated use of brokered time deposits, which grew to a substantial $75.0 million to fund an aggressive investment strategy. Honesty, using expensive, rate-sensitive deposits to fund investments is defintely a risky trade-off for a bank with total assets of $609.6 million.

External and industry risks are classic for a regional lender like First Seacoast Bancorp, Inc. The loan portfolio is heavily weighted toward residential real estate (around 63% of total loans), meaning the bank is highly susceptible to the real estate market conditions in its primary operating area of Dover, New Hampshire. Plus, regulatory changes are a constant headwind; the company is already evaluating the impact of new accounting standards like ASU 2024-02, which became effective on January 1, 2025.

The good news is that the bank has some significant cushions and mitigation strategies in place. Their credit quality is exceptional, with non-performing loans totaling only $194,000, translating to an extremely low non-performing loan ratio of just 0.05%. That's a clean balance sheet. Also, their capital ratios are robust, with a Total Risk-Based Capital ratio of 15.53%, which is comfortably above the 10.50% minimum required to be considered 'well capitalized.' This capital strength provides a buffer against the interest rate risk. You can dive deeper into who is holding this risk in Exploring First Seacoast Bancorp, Inc. (FSEA) Investor Profile: Who's Buying and Why?

Key Risks and Mitigation Summary:

• Interest Rate Risk: NPV decrease of 20.9% exceeds 20% limit.
• Funding Risk: High reliance on $75.0 million in brokered deposits.
• Operational Risk: YTD net loss of $(758,000) shows core weakness.
• Mitigation: Strong Total Risk-Based Capital ratio of 15.53%.
• Mitigation: Exceptionally low non-performing loan ratio of 0.05%.

Growth Opportunities

You need a clear picture of what drives First Seacoast Bancorp, Inc.'s (FSEA) future, especially when analyst consensus forecasts are defintely thin. The growth story here is less about aggressive acquisitions and more about deepening their roots in the Seacoast region of New Hampshire and southern Maine, plus a calculated bet on their balance sheet strategy.

The core growth engine for First Seacoast Bancorp remains its community banking model, which blends personalized service with digital capabilities. They are not chasing a national footprint; they are focused on dominating their local market with a full-service offering. This local focus is a key competitive advantage in a world where bigger banks often treat customers like a number.

• Product Innovations: The bank has modernized by offering convenient digital solutions, including mobile and online banking, which is crucial for retaining younger customers while keeping the five physical branch offices (in Dover, Durham, Barrington, Rochester, and Portsmouth) for relationship-based commercial and wealth management services.
• Market Expansion: Growth is organic and concentrated in the regional economy of New Hampshire and southern Maine. The strategy centers on expanding commercial real estate lending and wealth management services, which offer higher-margin revenue streams than plain vanilla residential mortgages.

Near-Term Revenue and Earnings Outlook

Since comprehensive analyst forecasts for the full 2025 fiscal year are generally unavailable, we must look closely at the actual results. The bank's trailing twelve-month (TTM) revenue as of mid-2025 stood at $14.10 million. While the core business is showing signs of strength, the year-to-date (YTD) results through September 30, 2025, show a net loss of $(0.758) million.

Here's the quick math: The nine-month net loss was primarily due to a significant drop in non-interest income compared to 2024, which benefited from a non-recurring gain on the sale of land and buildings. Still, the core banking operation returned to profitability in the third quarter of 2025, posting a net income of $390,000 (or $0.08 diluted earnings per share). This quarterly rebound, driven by a 13.0% YTD increase in Net Interest and Dividend Income to $10.05 million, suggests the bank is successfully managing its interest rate spread.

Strategic Risks and Opportunities

The bank's strategy is currently a high-wire act. The executive leadership transition in May 2025, with James R. Brannen becoming CEO and Richard M. Donovan stepping into the President and CFO role, is a strategic move to focus on advancing the bank's mission. But the most critical strategic initiative is in the balance sheet itself.

Management has pursued an aggressive funding arbitrage strategy, using expensive, non-core funding like $75 million in brokered time deposits to fund new available-for-sale (AFS) securities. This boosted net interest income, but it also caused a critical policy breach: a simulated Net Portfolio Value (NPV) decrease of 20.9% under a 200 basis point rate shock, which exceeds the bank's internal 20% limit. This strategy is the clearest near-term risk and opportunity rolled into one, designed to maximize returns on their $609.6 million in total assets.

To be fair, the balance sheet remains stable with total deposits rising 5.7% to $480.0 million and low credit risk-non-performing loans are only $194,000. The consensus 'Sell' rating from analysts suggests the market is highly skeptical of the bank's ability to navigate the interest rate risk inherent in their funding strategy. The question for you is whether the improved core net interest income can outrun the increased funding costs and interest rate exposure. You can read more about this in our full analysis: Breaking Down First Seacoast Bancorp, Inc. (FSEA) Financial Health: Key Insights for Investors

Here is a snapshot of the key 2025 performance metrics:

Your next step: Dive into the Q4 2025 guidance and assess how management plans to close that 20.9% interest rate risk gap. That's the real bellwether for 2026 earnings.