10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File No. 001-41597

First Seacoast Bancorp, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Maryland	92-0334805
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
633 Central Avenue, Dover, New Hampshire	03820
(Address of Principal Executive Offices)	(Zip Code)

(603)742-4680

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value per share	FSEA	The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 3, 2023, there were 5,077,616 outstanding shares of the Registrant's common stock.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION	2
Item 1.	Consolidated Financial Statements	2
	Consolidated Balance Sheets at September 30, 2023 (unaudited) and December 31, 2022	2
	Consolidated Statements of (Loss) Income for the Three and Nine Months Ended September 30, 2023 and 2022 (unaudited)	3
	Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2023 and 2022 (unaudited)	4
	Consolidated Statements of Changes in Stockholders’ Equity for the Three and Nine Months Ended September 30, 2023 and 2022 (unaudited)	5
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2023 and 2022 (unaudited)	6
	Notes to Consolidated Financial Statements (unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	48
Item 4.	Controls and Procedures	51
PART II.	OTHER INFORMATION	52
Item 1.	Legal Proceedings	52
Item 1A.	Risk Factors	52
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	52
Item 3.	Defaults Upon Senior Securities	52
Item 4.	Mine Safety Disclosures	52
Item 5.	Other Information	52
Item 6.	Exhibits	53
	Signatures	54

1

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

FIRST SEACOAST BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED Balance Sheets

(Dollars in thousands)	(Unaudited) September 30, 2023			December 31, 2022
ASSETS
Cash and due from banks	$	7,168		$	8,250
Interest bearing time deposits with other banks		—			747
Securities available-for-sale, at fair value		102,552			106,100
Federal Home Loan Bank stock		1,972			3,502
Total loans		427,485			402,505
Less allowance for credit losses on loans		(3,349	)		(3,581	)
Net loans		424,136			398,924
Land, building and equipment, net		4,160			4,181
Bank-owned life insurance		4,642			4,561
Accrued interest receivable		2,130			1,988
Other assets		10,395			9,171
Total assets	$	557,155		$	537,424
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing deposits	$	72,956		$	92,757
Interest bearing deposits		338,829			289,606
Total deposits		411,785			382,363
Advances from Federal Home Loan Bank		44,877			99,397
Advances from Federal Reserve Bank		25,000			—
Mortgagors’ tax escrow		2,381			938
Deferred compensation liability		1,990			1,830
Other liabilities		3,860			3,559
Total liabilities		489,893			488,087
Stockholders' Equity:
Preferred Stock, $.01 par value, 10,000,000 shares authorized, none issued		—			—
Common Stock, $.01 par value, 90,000,000 shares authorized; 5,192,515 issued and 5,077,616 outstanding at September 30, 2023; and 5,183,439 issued and 5,068,540 outstanding at December 31, 2022(1)		52			62
Additional paid-in capital		52,592			26,768
Retained earnings		35,266			36,248
Accumulated other comprehensive loss		(14,783	)		(9,727	)
Treasury stock, at cost: 114,899 shares outstanding as of September 30, 2023 and December 31, 2022(1)		(1,377	)		(1,377	)
Unearned stock compensation		(4,488	)		(2,637	)
Total stockholders' equity		67,262			49,337
Total liabilities and stockholders' equity	$	557,155		$	537,424

(1) Adjusted for conversion of First Seacoast Bancorp, Inc.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

2

FIRST SEACOAST BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED)

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2023			2022			2023			2022
Interest and dividend income:
Interest and fees on loans	$	4,281		$	3,543		$	12,215		$	10,427
Interest on debt securities:
Taxable		385			295			1,087			752
Non-taxable		443			342			1,305			900
Total interest on debt securities		828			637			2,392			1,652
Dividends		54			37			185			60
Total interest and dividend income		5,163			4,217			14,792			12,139
Interest expense:
Interest on deposits		1,668			151			3,454			400
Interest on borrowings		928			276			2,593			418
Total interest expense		2,596			427			6,047			818
Net interest and dividend income		2,567			3,790			8,745			11,321
Provision (release) for credit losses		120			(60	)		170			—
Net interest and dividend income after provision (release) for credit losses		2,447			3,850			8,575			11,321
Non-interest income:
Customer service fees		177			211			582			673
Gain on sale of loans		—			—			—			2
Securities gains, net		—			—			—			52
Gain on termination of interest rate swaps		—			—			849			—
Income from bank-owned life insurance		41			40			81			80
Loan servicing fee income		9			27			47			116
Investment services fees		65			76			220			252
Other income		22			11			42			30
Total non-interest income		314			365			1,821			1,205
Non-interest expense:
Salaries and employee benefits		2,486			2,228			7,328			6,905
Director compensation		46			86			234			223
Occupancy expense		205			179			584			554
Equipment expense		115			121			342			375
Marketing		174			137			378			286
Data processing		404			329			1,192			1,053
Deposit insurance fees		62			35			194			109
Professional fees and assessments		196			265			726			780
Debit card fees		58			50			157			136
Employee travel and education expenses		42			87			136			153
Other expense		311			191			779			749
Total non-interest expense		4,099			3,708			12,050			11,323
(Loss) income before income tax (benefit) expense		(1,338	)		507			(1,654	)		1,203
Income tax (benefit) expense		(427	)		39			(667	)		163
Net (loss) income	$	(911	)	$	468		$	(987	)	$	1,040
(Loss) earnings per share:
Basic (1)	$	(0.20	)	$	0.10		$	(0.21	)	$	0.22
Diluted (1)	$	(0.20	)	$	0.10		$	(0.21	)	$	0.22
Weighted average shares:
Basic (1)		4,638,225			4,808,243			4,648,651			4,818,423
Diluted (1), (2)		4,638,225			4,832,837			4,648,651			4,835,823

(1) Adjusted for conversion of First Seacoast Bancorp, Inc.

(2) Not adjusted for potentially dilutive shares for periods where a net loss was recognized. The three and nine months ended September 30, 2023 excludes 32,393 stock-based awards that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the periods presented.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3

FIRST SEACOAST BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED Statements of COMPREHENSIVE LOSS (UNAUDITED)

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2023			2022			2023			2022
Net (loss) income	$	(911	)	$	468		$	(987	)	$	1,040
Other comprehensive loss, net of income taxes:
Securities available-for-sale:
Unrealized holding losses on securities available-for-sale    arising during the period, net of income taxes of $(1,873), $(1,914),    $(1,788) and $(5,449), respectively		(5,023	)		(5,153	)		(4,876	)		(14,671	)
Reclassification adjustment for securities gains, net and net    amortization of bond premiums included in net (loss) income, net of    income taxes of $60, $71, $191 and $189, respectively		162			193			521			510
Total unrealized loss on securities available-for-sale		(4,861	)		(4,960	)		(4,355	)		(14,161	)
Derivatives:
Change in interest rate swaps, net of income taxes of $-0-, $93,    $(30) and $238, respectively		—			250			(82	)		642
Reclassification adjustment for net interest expense on swaps    included in net (loss) income, net of income taxes of $-0-, $(11),    $(230) and $(9), respectively		—			(30	)		(619	)		(25	)
Total change in interest rate swaps		—			220			(701	)		617
Other comprehensive loss		(4,861	)		(4,740	)		(5,056	)		(13,544	)
Comprehensive loss	$	(5,772	)	$	(4,272	)	$	(6,043	)	$	(12,504	)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

4

FIRST SEACOAST BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED Statements of Changes in STOCKHOLDERS’ EQUITY (UNAUDITED)

(Dollars in thousands)	Shares of Common Stock			Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Treasury Stock			Unearned Stock Compensation			Total Stockholders' Equity
Three months ended September 30,
Balance June 30, 2023		5,077,616		$	52		$	52,534		$	36,177		$	(9,922	)	$	(1,377	)	$	(4,628	)	$	72,836
Net loss		—			—			—			(911	)		—			—			—			(911	)
Other comprehensive loss		—			—			—			—			(4,861	)		—			—			(4,861	)
Amortization of unearned stock compensation		—			—			—			—			—			—			102			102
Stock-based compensation expense		—			—			67			—			—			—			—			67
ESOP shares earned - 3,839 shares		—			—			(9	)		—			—			—			38			29
Balance September 30, 2023		5,077,616		$	52		$	52,592		$	35,266		$	(14,783	)	$	(1,377	)	$	(4,488	)	$	67,262
Nine months ended September 30,
Balance December 31, 2022(1)		5,068,540		$	62		$	26,768		$	36,248		$	(9,727	)	$	(1,377	)	$	(2,637	)	$	49,337
Net loss		—			—			—			(987	)		—			—			—			(987	)
Other comprehensive loss		—			—			—			—			(5,056	)		—			—			(5,056	)
Cumulative adjustment for change in accounting principle (ASU 2016-13)		—			—			—			5			—			—			—			5
Reorganization: Conversion of First Seacoast Bancorp, Inc. (net of costs of $2.4 million)		6,598			(10	)		25,732			—			—			—			—			25,722
Purchase of 224,400 shares of common stock by the ESOP		—			—			—			—			—			—			(2,244	)		(2,244	)
Issuance of stock compensation		2,478			—			20			—			—			—			(20	)		—
Amortization of unearned stock compensation		—			—			—			—			—			—			298			298
Stock-based compensation expense		—			—			88			—			—			—			—			88
ESOP shares earned - 11,517 shares		—			—			(16	)		—			—			—			115			99
Balance September 30, 2023		5,077,616		$	52		$	52,592		$	35,266		$	(14,783	)	$	(1,377	)	$	(4,488	)	$	67,262
Three months ended September 30,
Balance June 30, 2022(1)		5,069,036		$	62		$	26,785		$	37,385		$	(8,083	)	$	(1,371	)	$	(2,906	)	$	51,872
Net income		—			—			—			468			—						—			468
Other comprehensive loss		—			—			—			—			(4,740	)					—			(4,740	)
Amortization of unearned stock compensation		—			—			—			—			—			—			98			98
ESOP shares earned - 2,492 shares		—			—			2			—			—						30			32
Balance September 30, 2022(1)		5,069,036		$	62		$	26,787		$	37,853		$	(12,823	)	$	(1,371	)	$	(2,778	)	$	47,730
Nine months ended September 30,
Balance December 31, 2021(1)		5,117,885		$	62		$	26,783		$	36,813		$	721		$	(748	)	$	(3,163	)	$	60,468
Net income		—			—			—			1,040			—			—			—			1,040
Other comprehensive loss		—			—			—			—			(13,544	)		—			—			(13,544	)
Treasury stock activity		(48,849	)		—			—			—			—			(623	)		—			(623	)
Amortization of unearned stock compensation		—			—			—			—			—			—			295			295
ESOP shares earned - 7,475 shares		—			—			4			—			—			—			90			94
Balance September 30, 2022(1)		5,069,036		$	62		$	26,787		$	37,853		$	(12,823	)	$	(1,371	)	$	(2,778	)	$	47,730

(1) Adjusted for conversion of First Seacoast Bancorp, Inc.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

5

FIRST SEACOAST BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Months Ended September 30,
(Dollars in thousands)	2023			2022
Cash flows from operating activities:
Net (loss) income	$	(987	)	$	1,040
Adjustments to reconcile net (loss) income to net cash (used) provided by operating activities:
Cumulative change in accounting principle (ASU 2016-13)		5			—
ESOP expense		99			94
Stock based compensation		386			295
Loss on disposition of property and equipment		2			—
Depreciation and amortization		364			401
Net amortization of bond premium		712			751
Provision for credit losses		170			—
Gain on sale of loans		—			(2	)
Securities gains, net		—			(52	)
Gain on termination of interest rate swaps		(849	)		—
Proceeds from loans sold		—			639
Origination of loans sold		—			(637	)
Increase in bank-owned life insurance		(81	)		(80	)
Increase in deferred costs on loans		(231	)		(601	)
Deferred tax (benefit) expense		(720	)		105
Increase in accrued interest receivable		(142	)		(288	)
Decrease (increase) in other assets		794			(880	)
Increase in deferred compensation liability		160			44
(Decrease) increase in other liabilities		(99	)		1,020
Net cash (used) provided by operating activities		(417	)		1,849
Cash flows from investing activities:
Proceeds from sales, maturities and principal payments received on securities available-for-sale		3,661			4,087
Purchase of securities available-for-sale		(6,754	)		(33,642	)
Purchase of property and equipment		(323	)		(103	)
Loan purchases		(1,221	)		(3,002	)
Loan originations and principal collections, net		(23,977	)		(15,531	)
Net redemption (purchase) of Federal Home Loan Bank stock		1,530			(1,658	)
Proceeds from sales of interest bearing time deposits with other banks		747			498
Proceeds from termination of interest rate swaps		849			—
Net cash used by investing activities		(25,488	)		(49,351	)
Cash flows from financing activities:
Net increase (decrease) in NOW, demand deposits, money market and savings accounts		6,404			(623	)
Net increase (decrease) in time deposits		23,018			(5,871	)
Increase in mortgagors’ escrow accounts		1,443			1,400
Proceeds from sale of common stock, net		25,622			—
Common stock purchased by ESOP		(2,244	)		—
Return of capital from conversion of First Seacoast Bancorp, Inc.		100			—
Treasury stock purchases		—			(623	)
Net (payments) proceeds from short-term FHLB advances		(39,520	)		55,224
Proceeds from long-term FHLB advances		—			468
Payments on long-term FHLB advances		(15,000	)		(2,262	)
Proceeds from advances from Federal Reserve Bank		25,000			—
Net cash provided by financing activities		24,823			47,713
Net change in cash and cash equivalents		(1,082	)		211
Cash and cash equivalents at beginning of period		8,250			6,638
Cash and cash equivalents at end of period	$	7,168		$	6,849
Supplemental disclosure of cash flow information:
Cash activities:
Cash paid for interest	$	5,633		$	789
Cash paid for income taxes		41			53
Noncash activities:
Effect of change in fair value of securities available-for-sale:
Securities available-for-sale		(5,929	)		(19,421	)
Deferred taxes		1,574			5,260
Other comprehensive loss		(4,355	)		(14,161	)
Effect of change in fair value of interest rate swaps:
Interest rate swaps		(961	)		846
Deferred taxes		260			(229	)
Other comprehensive (loss) income		(701	)		617
Cumulative fair value hedging adjustment - loans		447			—
Effect of the adoption of ASU 2016-13:
Allowance for credit losses on loans		(295	)	NA
Other liabilities		290		NA
Effect of the adoption of ASU 2016-02:
Other assets		—			224
Other liabilities		—			224

The accompanying notes are an integral part of these unaudited consolidated financial statements.

6

FIRST SEACOAST BANCORP, INC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.Summary of Significant Accounting Policies

The accompanying unaudited consolidated financial statements include the accounts of First Seacoast Bancorp, Inc. (the “Company”), its wholly-owned subsidiary, First Seacoast Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, FSB Service Corporation, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim consolidated financial information, general practices within the banking industry and with instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all the information or footnotes required by U.S. GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of these consolidated financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results which may be expected for the entire year. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 24, 2023.

Corporate Structure

On January 19, 2023, the conversion of First Seacoast Bancorp, MHC from mutual to stock form and the related stock offering by First Seacoast Bancorp, Inc., the new holding company for First Seacoast Bank, was completed. As a result, both First Seacoast Bancorp, MHC and First Seacoast Bancorp (a federal corporation) ceased to exist. First Seacoast Bancorp, Inc.’s common stock began trading on the Nasdaq Capital Market under the trading symbol “FSEA” on January 20, 2023. As a result of the subscription offering, the community offering and the syndicated community offering, First Seacoast Bancorp, Inc. sold a total of 2,805,000 shares of its common stock at a price of $10.00 per share, which includes 224,400 shares sold to First Seacoast Bank’s Employee Stock Ownership Plan. As part of the conversion transaction, each outstanding share of First Seacoast Bancorp (a federal corporation) common stock owned by the public stockholders of First Seacoast Bancorp (a federal corporation) (stockholders other than First Seacoast Bancorp, MHC) as of the closing date was converted into shares of First Seacoast Bancorp, Inc. common stock based on an exchange ratio of 0.8358 shares of First Seacoast Bancorp, Inc. common stock for each share of First Seacoast Bancorp (a federal corporation) common stock.

The Bank offers a full range of banking and wealth management services to its customers. The Bank focuses on four core services that center around customer needs. The core services include residential lending, commercial banking, personal banking and wealth management. The Bank offers a full range of commercial and consumer banking services through its network of five full-service branch locations.

The Bank is engaged principally in the business of attracting deposits from the public and investing those funds in various types of loans, including residential and commercial real estate loans, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities. Deposits at the Bank are insured by the Federal Deposit Insurance Corporation (“FDIC”) for the maximum amount permitted by law.

The Company has one reportable segment, “Banking Services.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and other borrowings and manage interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit.

Investment management services are offered through FSB Wealth Management. FSB Wealth Management is a division of First Seacoast Bank. The division currently consists of two financial advisors who are located in Dover, New Hampshire. FSB Wealth Management provides access to non-FDIC insured products that include retirement planning, portfolio management, investment and insurance strategies, business retirement plans and college planning to individuals throughout our primary market area. These investments and services are offered through a third-party registered broker-dealer and investment advisor. FSB Wealth Management receives fees from advisory services and commissions on individual investment and insurance products purchased by clients. The assets held for wealth management customers are not assets of the Company and, accordingly, are not reflected in the Company’s consolidated balance sheets.

7

On August 17, 2021, the Bank entered into a definitive agreement with an investment advisory and wealth management firm (the “seller”) to purchase certain of its client accounts and client relationships for a final adjusted purchase price of $324,000 which is included in other assets at September 30, 2023. The client accounts purchased are recorded as a customer list intangible asset. Identifiable intangible assets that are subject to amortization will be reviewed for impairment, at least annually, based on their fair value. Any impairment will be recognized as a charge to earnings and the adjusted carrying amount of the intangible asset will become its new accounting basis. The remaining useful life of the intangible asset will also be evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company is amortizing the customer list intangible on a straight-line basis over a ten-year period. During the three months ended September 30, 2023 and 2022, $8,000 and $9,000 of amortization expense was recorded in other expense, respectively. During the nine months ended September 30, 2023 and 2022, $22,000 and $27,000 of amortization expense was recorded in other expense, respectively.

Recently Adopted Accounting Standards

As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards without an extended transition period. As of September 30, 2023, there was no significant difference in the comparability of the Company’s consolidated financial statements as a result of this extended transition period. The Company’s status as an “emerging growth company” will end on the earlier of: (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering (which will be December 31, 2024 for the Company); (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates).

In March 2022, the FASB issued ASU 2022-2,“Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the troubled debt restructuring (“TDR”) accounting model for creditors that have adopted Topic 326, “Financial Instruments – Credit Losses.” All other creditors must continue to apply the TDR accounting model until they adopt ASU 2016-13,“Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Due to the removal of the TDR accounting model, all loan modifications are accounted for under the general loan modification guidance in Subtopic 310-20. In addition, on a prospective basis, entities are subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements also are required to prospectively disclose current-period gross write-off information by vintage (that is, year of origination). This ASU becomes effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” to increase stakeholder awareness of the improvements made to the various amendments to Topic 326 and to clarify certain areas of guidance as companies transition to the new standard. Also during November 2019, the FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates,” finalizing various effective date deferrals for private companies, not-for-profit organizations and certain smaller reporting companies applying the credit losses (CECL), leases and hedging standards. The effective date for ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” is deferred to years beginning after December 15, 2022. The effective dates for ASU 2016-02, “Leases (Topic 842)” was deferred to fiscal years beginning after December 15, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

In April 2019, the FASB issued ASU 2019-04,“Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” to increase stakeholders’ awareness of the amendments and to expedite improvements to the Codification. In May 2019, the FASB issued ASU 2019-05,“Financial Instruments—Credit Losses, Topic 326.” This ASU addresses certain stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. On October 16, 2019, the FASB approved a proposal to delay the implementation of this standard for smaller reporting companies to years beginning after December 15, 2022. Early adoption was permitted. See the next paragraph for further discussion regarding the implementation of this standard.

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In June 2016, the FASB issued ASU 2016-13,“Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which creates a new credit impairment standard for financial assets measured at amortized cost and available-for-sale debt securities. The ASU requires financial assets measured at amortized cost (including loans and held-to-maturity debt securities) to be presented at the net amount expected to be collected, through an allowance for credit losses that are expected to occur over the remaining life of the asset, rather than incurred losses. The ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a direct write-down. The measurement of credit losses for newly recognized financial assets (other than certain purchased assets) and subsequent changes in the allowance for credit losses are recorded in the statement of (loss) income as the amounts expected to be collected change. The ASU was originally to be effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. In November 2018, the FASB issued ASU 2018-19,“Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” extending the implementation date by one year for smaller reporting companies and clarifying that operating lease receivables are outside the scope of Accounting. In November, 2019, the FASB issued ASU 2019-10, which delayed the effective date for ASU 2016-13 for smaller reporting companies, resulting in ASU 2016-13 becoming effective in the first quarter of 2023 for the Company. The ASU requires the measurement of all expected credit losses for loans held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, the ASU requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today are still permitted, though the inputs to those techniques have changed to reflect the full amount of expected credit losses. The Company has selected a loss estimation methodology which utilizes a third-party software application. The Company has recorded the effect of implementing this ASU using a modified-retrospective approach through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which the ASU was effective, which was January 1, 2023. The adoption of the new standard resulted in a decrease to its allowance for credit losses on loans (“ACL”). This decrease, though, was offset by an increase in the allowance for credit losses on off-balance sheet ("OBS") commitments that are not unconditionally cancelable. The decrease in ACL was due to a reduced emphasis on qualitative factors under the CECL model as the underlying historical loss data of the selected peer group is much more robust with broader time horizons as compared to the Company's actual historical loss data used under an incurred loss methodology. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements (see below and Note 3, Loans, for more information).

January 1, 2023 CECL Transition (Day 1) Impact

The CECL methodology reflects the Company's view of the state of the economy and forecasted macroeconomic conditions and their impact on the Company's loan portfolio as of the adoption date.

The following table illustrates the impact of the adoption of ASU 2016-13:

	January 1, 2023
	As reported under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
	(Dollars in thousands)
ASSETS
Allowance for credit losses on loans:
Commercial real estate (CRE)	$	788	$	942	$	(154	)
Multifamily (MF)		55		54		1
Commercial and industrial (C+I)		273		184		89
Acquisition, development, and land (ADL)		120		138		(18	)
1-4 family residential (RES)		1,847		2,048		(201	)
Home equity line of credit (HELOC)		88		81		7
Consumer (CON)		114		100		14
Unallocated		1		34		(33	)
Allowance for credit losses on loans	$	3,286	$	3,581		(295	)
LIABILITIES
Allowance for credit losses on OBS credit exposures	$	308	$	18	$	290

Recent Accounting Pronouncements Yet To Be Adopted

The Company considers the applicability and impact of all ASUs. Recent accounting pronouncements issued by the FASB not listed below did not have, or are not expected to have, a material impact on the Company's present or future consolidated financial statements.

In January 2021, the FASB issued ASU 2021-1, “Reference Rate Reform (Topic 848) (Scope),” which clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting applied to derivatives that are affected by the discounting transition. This ASU was to become effective immediately for all entities on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The effective date was extended by the issuance of

9

ASU No. 2022-06, “Reference Rate Reform (Topic 848),” which, as noted above, defers the sunset date of Topic 848 from December 2022 to December 2024. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements.

2.Securities Available-for-Sale

The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses for which an allowance for credit losses has not been recorded, are as follows as of September 30, 2023 and December 31, 2022:

	September 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. Government-sponsored enterprises obligations	$	2,172	$	—	$	(403	)	$	1,769
U.S. Government agency small business administration    pools guaranteed by SBA		8,625		—		(1,381	)		7,244
Collateralized mortgage obligations issued by the    FHLMC, FNMA and GNMA		6,401		—		(809	)		5,592
Residential mortgage-backed securities		26,202		—		(5,470	)		20,732
Municipal bonds		70,645		—		(11,003	)		59,642
Corporate debt		500		—		(14	)		486
Corporate subordinated debt		8,237		—		(1,150	)		7,087
	$	122,782	$	—	$	(20,230	)	$	102,552
	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. Government-sponsored enterprises obligations	$	2,191	$	—	$	(365	)	$	1,826
U.S. Government agency small business administration    pools guaranteed by SBA		9,475		—		(1,116	)		8,359
Collateralized mortgage obligations issued by the    FHLMC, FNMA and GNMA		6,922		8		(708	)		6,222
Residential mortgage-backed securities		26,390		—		(4,567	)		21,823
Municipal bonds		69,373		172		(7,129	)		62,416
Corporate debt		500		—		(3	)		497
Corporate subordinated debt		5,550		—		(593	)		4,957
	$	120,401	$	180	$	(14,481	)	$	106,100

The amortized cost and fair values of securities available-for-sale at September 30, 2023 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2023
	Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years		2,234		1,410
Due after five years through ten years		9,988		7,962
Due after ten years		69,332		59,612
Total U.S. Government-sponsored enterprises obligations,    municipal bonds, corporate debt and corporate subordinated debt		81,554		68,984
U.S. Government agency small business pools guaranteed    by SBA(1)		8,625		7,244
Collateralized mortgage obligations issued by the FHLMC,    FNMA, and GNMA(1)		6,401		5,592
Residential mortgage-backed securities(1)		26,202		20,732
Total	$	122,782	$	102,552

(1) Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans.

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The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at September 30, 2023 and December 31, 2022.

	Less than 12 Months							More than 12 Months							Total
	Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in thousands)
September 30, 2023
U.S. Government sponsored    enterprises obligations		—	$	—	$	—			4	$	1,769	$	(403	)	$	1,769	$	(403	)
U.S. Government agency small    business administration pools    guaranteed by SBA		—		—		—			11		7,244		(1,381	)		7,244		(1,381	)
Collateralized mortgage    obligations issued by    the FHLMC, FNMA    and GNMA		1		906		(21	)		9		4,686		(788	)		5,592		(809	)
Residential mortgage    backed securities		3		2,228		(94	)		31		18,504		(5,376	)		20,732		(5,470	)
Municipal bonds		20		14,151		(968	)		85		45,491		(10,035	)		59,642		(11,003	)
Corporate debt		1		486		(14	)		—		—		—			486		(14	)
Corporate subordinated debt		3		3,082		(120	)		4		4,005		(1,030	)		7,087		(1,150	)
		28	$	20,853	$	(1,217	)		144	$	81,699	$	(19,013	)	$	102,552	$	(20,230	)
December 31, 2022
U.S. Government sponsored    enterprises obligations		1	$	453	$	(43	)		3	$	1,373	$	(322	)	$	1,826	$	(365	)
U.S. Government agency small    business administration pools    guaranteed by SBA		8		5,947		(602	)		3		2,412		(514	)		8,359		(1,116	)
Collateralized mortgage    obligations issued by    the FHLMC, FNMA    and GNMA		5		3,212		(209	)		4		2,016		(499	)		5,228		(708	)
Residential mortgage    backed securities		8		4,239		(503	)		23		16,649		(4,064	)		20,888		(4,567	)
Municipal bonds		86		49,228		(5,900	)		8		5,769		(1,229	)		54,997		(7,129	)
Corporate debt		1		497		(3	)		—		—		—			497		(3	)
Corporate subordinated debt		4		4,457		(593	)		—		—		—			4,457		(593	)
		113	$	68,033	$	(7,853	)		41	$	28,219	$	(6,628	)	$	96,252	$	(14,481	)

Management evaluates securities available-for-sale in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At September 30, 2023, the Company had 172 securities available-for-sale in an unrealized loss position without an allowance for credit losses. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of September 30, 2023, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in market interest rates and other market conditions, and therefore the Company carried no allowance for credit losses on securities available-for-sale as of September 30, 2023.

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Proceeds from sales, maturities, principal payments received and gross realized gains and losses on securities available-for-sale were as follows for the three and nine months ended September 30, 2023 and 2022:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(Dollars in thousands)
Proceeds from sales, maturities and principal payments      received on securities available-for-sale	$	1,450	$	1,545	$	3,661	$	4,087
Gross realized gains		—		—		—		52
Gross realized losses		—		—		—		—
Net realized gains	$	—	$	—	$	—	$	52

As of September 30, 2023 and December 31, 2022, there were no holdings of securities of any issuer, other than the SBA, FHLMC, GNMA and FNMA, whose aggregate carrying value exceeded 10% of stockholders’ equity.

3.Loans and Allowance for Credit Losses on Loans

The Company's lending activities are primarily conducted in and around Dover, New Hampshire and in the areas surrounding its branches. The Company grants commercial real estate loans, multifamily 5+ dwelling unit loans, commercial and industrial loans, acquisition, development and land loans, 1–4 family residential loans, home equity line of credit loans and consumer loans. Most loans are collateralized by real estate. The ability and willingness of real estate, commercial and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate sector in the borrowers’ geographic area and the general economy.

Loans consisted of the following at September 30, 2023 and December 31, 2022:

	September 30, 2023			December 31, 2022
	(Dollars in thousands)
Commercial real estate (CRE)	$	87,295		$	80,506
Multifamily (MF)		7,679			8,185
Commercial and industrial (C+I)		24,875			24,059
Acquisition, development, and land (ADL)		19,255			18,490
1-4 family residential (RES)		264,477			251,466
Home equity line of credit (HELOC)		12,614			10,161
Consumer (CON)		8,610			7,189
Total loans		424,805			400,056
Net deferred loan costs		2,680			2,449
Allowance for credit losses on loans		(3,349	)		(3,581	)
Total loans, net	$	424,136		$	398,924

Allowance for Credit Losses on Loans ("ACL")

Effective January 1, 2023, the Company adopted the new accounting standard for credit losses, ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended ("ASU 2016-13"). This new accounting standard, commonly referred to as "CECL," significantly changed the methodology for accounting for reserves on loans and unfunded off-balance sheet credit exposures, including certain unfunded loan commitments and standby guarantees. ASU 2016-13 replaced the "incurred loss" methodology used to establish an allowance on loans and off-balance sheet credit exposures, with an "expected loss" approach. Under CECL, the ACL at each reporting period serves as a best estimate of projected credit losses over the contractual life of certain assets, adjusted for expected prepayments, given an expectation of economic conditions and forecasts as of the valuation date. Upon adoption of CECL, the Company made the following elections regarding accrued interest receivable: (i) present accrued interest receivable balances separately on the balance sheet on the consolidated statements of condition; (ii) exclude accrued interest from the measurement of the ACL, including investments and loans; and (iii) continue to write-off accrued interest receivable by reversing interest income. The Company has a policy in place to write-off accrued interest when a loan is placed on non-accrual. Accrued interest is written-off by reversing previously recorded interest income. For loans, write-off typically occurs when a loan has been in default for 90 days or more. An immaterial amount of accrued interest on non-accrual loans was written off during the three and nine months ended September 30, 2023, by reversing interest income. Historically, the Company has not experienced uncollectible accrued interest receivable on its securities available-for-sale.

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The ACL is the sum of various components including the following: (a) historical loss experience, (b) a reasonable and supportable forecast, (c) loans evaluated individually, and (d) changes in relevant environmental factors. The historical loss component is segmented by loan type and serves as the core of the ACL adequacy methodology. The Company has selected the Weighted Average Remaining Maturity Model (“WARM”), for the loss calculation of each of the Bank’s loan pools utilizing a third-party software application. The WARM uses a quarterly loss rate and future expectations of loan balances to calculate an ACL. A loss rate is applied to pool balances over time.

CECL may create more volatility in the ACL, specifically the ACL on loans and ACL on off-balance sheet credit exposures. Under CECL, the ACL may increase or decrease period to period based on many factors, including, but not limited to: (i) macroeconomic forecasts and conditions; (ii) forecast period and reversion speed; (iii) prepayment speed assumption; (iv) loan portfolio volumes and changes in mix; (v) credit quality; and (vi) various qualitative factors outlined in ASU 2016-13.

The significant key assumptions used with the ACL calculation at September 30, 2023 using the CECL methodology, included:

•Macroeconomic factors (loss drivers): Monitoring and assessing local and national unemployment, changes in national GDP and other macroeconomic factors which may be the most predictive indicator of losses within the loan portfolio. The macroeconomic factors considered in determining the ACL may change from time to time.

•Forecast Period and Reversion speed: ASU 2016-13 requires a company to use a reasonable and supportable forecast period in developing the ACL, which represents the time period that management believes it can reasonably forecast the identified loss drivers. Generally, the forecast period management believes to be reasonable and supportable will be set annually and validated through an assessment of economic leading indicators. In periods of greater volatility and uncertainty, such as the current interest rate environment, management will likely use a shorter forecast period, whereas when markets, economies, interest rate environment, political matters, and other factors are considered to be more stable and certain, a longer forecast period may be used. Also, in times of greater uncertainty, management may consider a range of possible forecasts and evaluate the probability of each scenario. Generally, the forecasted period is expected to range from one to three years. Once the reasonable and supportable forecast period is determined, ASU 2016-13 requires a company to revert its loss expectations to the long-run historical mean for the remainder of the contract life of the asset, adjusted for prepayments. In determining the length of time over which the reversion will take place (i.e. "reversion speed"), factors such as, historical credit loss experience over previous economic cycles, as well as where the Company believes it is within the current economic cycle, will be considered. The Company has chosen a forecast period of six quarters which will be similar to the historical loss period between September 2007 and March 2009 and then reverting to the long-term average over the following six quarters using the straight-line reversion method. The Company believes this historical forecast period to be representative of potential economic conditions over the next eighteen months.

•Prepayment speeds: Prepayment speeds are determined for each loan segment utilizing the Company's historical loan data, as well as consideration of current environmental factors. The prepayment speed assumption is utilized with the WARM method to forecast expected cash flows over the contractual life of the loan, adjusted for expected prepayments. A higher prepayment speed assumption will drive a lower ACL, and vice versa.

•Qualitative factors: As within previous accounting guidance used for the "incurred loss" model, ASU 2016-13 requires companies to consider various qualitative factors that may impact expected credit losses. The Company continues to consider qualitative factors in determining and arriving at an ACL at each reporting period such as: (i) actual or expected changes in economic trends and conditions, (ii) changes in the value of underlying collateral for loans, (iii) changes to lending policies, underwriting standards and/or management personnel performing such functions, (iv) delinquency and other credit quality trends, (v) credit risk concentrations, if any, (vi) changes to the nature of the Company's business impacting the loan portfolio, (vii) and other external factors, that may include, but are not limited to, results of internal loan reviews and examinations by bank regulatory agencies.

Certain loans which may not share similar risk characteristics with other loans in the portfolio may be tested individually for estimated credit losses, including (i) loans classified as special mention, substandard or doubtful and are on non-accrual, (ii) a loan modified for a borrower experiencing financial difficulty or (iii) loans that have other unique characteristics. Factors considered in measuring the extent of the expected credit loss for these loans may include payment status, collateral value, borrower's financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due.

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Changes in the ACL for the three and nine months ended September 30, 2023, under the CECL model, by portfolio segment, are summarized as follows:

(Dollars in thousands)	CRE			MF		C+I		ADL			RES			HELOC		CON			Unallocated			Total
Balance, June 30, 2023	$	806		$	49	$	277	$	70		$	1,910		$	85	$	109		$	13		$	3,319
Provision for credit losses on loans		(18	)		22		11		31			(174	)		76		95			(13	)		30
Charge-offs		—			—		—		—			—			—		—			—			—
Recoveries		—			—		—		—			—			—		—			—			—
Balance, September 30, 2023	$	788		$	71	$	288	$	101		$	1,736		$	161	$	204		$	—		$	3,349
Balance, December 31, 2022, Prior to Adoption of ASC 326	$	942		$	54	$	184	$	138		$	2,048		$	81	$	100		$	34		$	3,581
Impact of adopting ASC 326		(154	)		1		89		(18	)		(202	)		7		14			(32	)		(295	)
Provision for credit losses on loans		—			16		15		(19	)		(110	)		73		92			(2	)		65
Charge-offs		—			—		—		—			—			—		(4	)		—			(4	)
Recoveries		—			—		—		—			—			—		2			—			2
Balance, September 30, 2023	$	788		$	71	$	288	$	101		$	1,736		$	161	$	204		$	—		$	3,349

Changes in the allowance for credit losses on loans for the three and nine months ended September 30, 2022, under the incurred loss model, by portfolio segment, are summarized as follows:

(Dollars in thousands)	CRE			MF			C+I			ADL			RES			HELOC		CON			Unallocated		Total
Balance, June 30, 2022	$	1,019		$	57		$	208		$	110		$	2,025		$	87	$	111		$	27	$	3,644
Provision for loan losses		(75	)		(1	)		(11	)		16			24			4		(18	)		1		(60	)
Charge-offs		—			—			—			—			—			—		—			—		—
Recoveries		—			—			—			—			—			—		—			—		—
Balance, September 30, 2022	$	944		$	56		$	197		$	126		$	2,049		$	91	$	93		$	28	$	3,584
Balance, December 31, 2021	$	833		$	80		$	194		$	178		$	2,139		$	63	$	75		$	28	$	3,590
Provision for loan losses		111			(24	)		2			(52	)		(90	)		28		25			—		—
Charge-offs		—			—			—			—			—			—		(9	)		—		(9	)
Recoveries		—			—			1			—			—			—		2			—		3
Balance, September 30, 2022	$	944		$	56		$	197		$	126		$	2,049		$	91	$	93		$	28	$	3,584

As of September 30, 2023 and December 31, 2022, information about loans, the ACL and the ALL, by portfolio segment, are summarized below:

(Dollars in thousands)	CRE		MF		C+I		ADL		RES		HELOC		CON		Unallocated		Total
September 30, 2023 Loan Balances
Individually evaluated to determine expected credit losses	$	—	$	—	$	—	$	—	$	184	$	—	$	—	$	—	$	184
Collectively evaluated to determine expected credit losses		87,295		7,679		24,875		19,255		264,293		12,614		8,610		—		424,621
Total	$	87,295	$	7,679	$	24,875	$	19,255	$	264,477	$	12,614	$	8,610	$	—	$	424,805
ACL related to the loans
Individually evaluated to determine expected credit losses	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated to determine expected credit losses		788		71		288		101		1,736		161		204		—		3,349
Total	$	788	$	71	$	288	$	101	$	1,736	$	161	$	204	$	—	$	3,349
December 31, 2022 Loan Balances
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	273	$	—	$	5	$	—	$	278
Collectively evaluated for impairment		80,506		8,185		24,059		18,490		251,193		10,161		7,184		—		399,778
Total	$	80,506	$	8,185	$	24,059	$	18,490	$	251,466	$	10,161	$	7,189	$	—	$	400,056
ALL related to the loans
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		942		54		184		138		2,048		81		100		34		3,581
Total	$	942	$	54	$	184	$	138	$	2,048	$	81	$	100	$	34	$	3,581

14

The following is an aging analysis of past due loans by portfolio segment as of September 30, 2023, including non-accrual loans without an ACL:

(Dollars in thousands)	30-59 Days		60-89 Days		90 + Days		Total Past Due		Current		Total Loans		Non-Accrual Loans
CRE	$	—	$	—	$	—	$	—	$	87,295	$	87,295	$	—
MF		—		—		—		—		7,679		7,679		—
C+I		—		—		—		—		24,875		24,875		—
ADL		—		—		—		—		19,255		19,255		—
RES		—		—		—		—		264,477		264,477		—
HELOC		—		—		—		—		12,614		12,614		—
CON		—		—		—		—		8,610		8,610		—
	$	—	$	—	$	—	$	—	$	424,805	$	424,805	$	—

Interest income recognized on non-accrual loans during three and nine months ended September 30, 2023 was $-0-.

The following is an aging analysis of past due loans by portfolio segment as of December 31, 2022:

(Dollars in thousands)	30-59 Days		60-89 Days		90 + Days		Total Past Due		Current		Total Loans		Non- Accrual Loans
CRE	$	—	$	—	$	—	$	—	$	80,506	$	80,506	$	—
MF		—		—		—		—		8,185		8,185		—
C+I		—		—		—		—		24,059		24,059		—
ADL		—		—		—		—		18,490		18,490		—
RES		—		84		—		84		251,382		251,466		84
HELOC		5		—		—		5		10,156		10,161		—
CON		7		—		—		7		7,181		7,189		5
	$	12	$	84	$	—	$	96	$	399,960	$	400,056	$	89

The Company's one collateral-dependent non-accrual RES loan had an amortized cost basis of $84,000 and was secured by real estate with an appraised value of $422,000. The property was sold in April 2023 and the loan was repaid.

There were no loans collateralized by residential real estate property in the process of foreclosure at September 30, 2023 or December 31, 2022.

The following table provides information on impaired loans as of and for the year ended December 31, 2022:

	As of December 31, 2022						At December 31, 2022
(Dollars in thousands)	Recorded Carrying Value		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
CRE	$	—	$	—	$	—	$	—	$	—
MF		—		—		—		—		—
C+I		—		—		—		—		—
ADL		—		—		—		—		—
RES		273		273		—		446		32
HELOC		—		—		—		57		3
CON		5		5		—		2		—
Total	$	278	$	278	$	—	$	505	$	35

There were no loans modified for borrowers experiencing financial difficulty during the nine months ended September 30, 2023. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification, if applicable. The ACL incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. Because the effect of most modifications made to borrowers experiencing financial difficulty would already be included in the ACL as a result of the measurement methodologies used to estimate the allowance, a change in the ACL is generally not recorded upon modification. There were no loans modified and determined to be a troubled debt restructuring during the year ended December 31, 2022.

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Credit Quality Information

The Company utilizes a ten-grade internal loan rating system for its commercial real estate, multifamily, commercial and industrial and acquisition, development, and land loans. Residential real estate, home equity line of credit and consumer loans are considered “pass” rated loans until they become delinquent. Once delinquent, loans can be rated an 8, 9 or 10 as applicable.

Loans rated 1 through 6: Loans in these categories are considered “pass” rated loans with low to average risk.

Loans rated 7: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management.

Loans rated 8: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Bank will sustain some loss if the weakness is not corrected.

Loans rated 9: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 10: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted and should be charged off.

On an annual basis, or more often if needed, the Company formally reviews the ratings on its commercial and industrial, commercial real estate and multifamily loans. On a periodic basis, the Company engages an independent third party to review a significant portion of loans within these segments and to assess the credit risk management practices of its commercial lending department. Management uses the results of these reviews as part of its annual review process, adequacy of the ACL on loans and overall credit risk administration.

On a quarterly basis, the Company formally reviews the ratings on its applicable residential real estate and home equity loans if they have become classified as non-accrual. Criteria used to determine ratings consist of loan-to-value ratios and days delinquent.

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Based upon the most recent analysis performed, the risk category of loans by portfolio segment by vintage, reported under the CECL methodology, was as follows as of September 30, 2023:

(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
CRE:
Risk rating:
Pass	$	9,756	$	10,257	$	8,123	$	2,821	$	4,849	$	17,307	$	34,182	$	—	$	87,295
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total CRE		9,756		10,257		8,123		2,821		4,849		17,307		34,182		—		87,295
MF:
Risk rating:
Pass		—		148		5,201		1,093		—		875		362		—		7,679
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total MF		—		148		5,201		1,093		—		875		362		—		7,679
C+I:
Risk rating:
Pass		2,813		6,928		4,363		3,006		1,635		2,255		3,875		—		24,875
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total C+I		2,813		6,928		4,363		3,006		1,635		2,255		3,875		—		24,875
ADL:
Risk rating:
Pass		11,077		6,050		1,507		—		—		621		—		—		19,255
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total ADL		11,077		6,050		1,507		—		—		621		—		—		19,255
RES:
Risk rating:
Pass		12,513		41,831		64,656		52,469		20,150		72,858		—		—		264,477
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total RES		12,513		41,831		64,656		52,469		20,150		72,858		—		—		264,477
HELOC:
Risk rating:
Pass		—		—		—		—		—		—		12,614		—		12,614
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total HELOC		—		—		—		—		—		—		12,614		—		12,614
CON:
Risk rating:
Pass		2,157		2,466		1,956		1,534		271		226		—		—		8,610
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total CON		2,157		2,466		1,956		1,534		271		226		—		—		8,610
Total	$	38,316	$	67,680	$	85,806	$	60,923	$	26,905	$	94,142	$	51,033	$	—	$	424,805

17

The following presents the internal risk rating of loans by portfolio segment as of December 31, 2022:

(Dollars in thousands)	Pass		Special Mention		Substandard		Total
CRE	$	77,820	$	2,686	$	—	$	80,506
MF		8,185		—		—		8,185
C+I		24,059		—		—		24,059
ADL		18,490		—		—		18,490
RES		251,382		—		84		251,466
HELOC		10,161		—		—		10,161
CON		7,184		—		5		7,189
Total	$	397,281	$	2,686	$	89	$	400,056

Certain directors and executive officers of the Company and entities in which they have significant ownership interests are customers of the Bank. Loans outstanding to these persons and entities at September 30, 2023 and December 31, 2022 were $5.3 million and $4.4 million, respectively.

4.Loan Servicing

Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of such loans were $34.1 million and $36.0 million at September 30, 2023 and December 31, 2022, respectively. Substantially all of these loans were originated by the Bank and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 15, Fair Value of Assets and Liabilities, for more information). Changes to the balance of mortgage servicing rights are recorded in loan servicing fee income in the Company’s consolidated statements of (loss) income.

The Company’s mortgage servicing activities include: collecting principal, interest and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to investors. Loan servicing income, including late and ancillary fees, was $9,000 and $27,000 for the three months ended September 30, 2023 and 2022, respectively, and $47,000 and $116,000 for the nine months ended September 30, 2023 and 2022, respectively. The Company's residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in the Company’s market areas.

The following summarizes activity in mortgage servicing rights for the three and nine months ended September 30, 2023 and 2022:

(Dollars in thousands)	2023			2022
Balance, June 30,	$	350		$	364
Additions		—			1
Payoffs		(2	)		(6	)
Change in fair value due to change in assumptions		(10	)		10
Balance, September 30,		338			369
Balance, January 1,		357			322
Additions		—			6
Payoffs		(5	)		(24	)
Change in fair value due to change in assumptions		(14	)		65
Balance, September 30,	$	338		$	369

5.Deposits

Deposits consisted of the following at September 30, 2023 and December 31, 2022:

(Dollars in thousands)	September 30, 2023		December 31, 2022
NOW and demand deposits	$	174,284	$	204,739
Money market deposits		85,825		60,931
Savings deposits		66,919		54,954
Time deposits of $250,000 and greater		13,980		7,796
Time deposits less than $250,000		70,777		53,943
	$	411,785	$	382,363

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At September 30, 2023, the scheduled maturities of time deposits were as follows:

(Dollars in thousands)	Total
2023	$	26,320
2024		41,523
2025		12,401
2026		3,212
2027		1,141
2028		160
	$	84,757

There were $23.6 million and $18.1 million of brokered time deposits which were bifurcated into amounts below the FDIC insurance limit at September 30, 2023 and December 31, 2022, respectively. Additionally, there were $20.6 million and $-0- of brokered deposits included in savings deposits at September 30, 2023 and December 31, 2022, respectively.

6.Borrowings

Federal Home Loan Bank (“FHLB”)

A summary of borrowings from the FHLB is as follows:

		September 30, 2023
Principal Amounts			Maturity Dates		Interest Rates
(Dollars in thousands)
$	42,209			2023	5.22% to 5.57% – fixed
	800			2024	0.00% – fixed
	520			2025	0.00% – fixed
	718			2028	0.00% – fixed
	200			2030	0.00% – fixed
	430			2031	0.00% – fixed
$	44,877
		December 31, 2022
Principal Amounts			Maturity Dates		Interest Rates
(Dollars in thousands)
$	96,729			2023	0.44% to 4.38% – fixed
	800			2024	0.00% – fixed
	520			2025	0.00% – fixed
	718			2028	0.00% – fixed
	200			2030	0.00% – fixed
	430			2031	0.00% – fixed
$	99,397

All borrowings from the FHLB are secured by a blanket security agreement on qualified collateral, principally residential mortgage loans, in an aggregate amount equal to outstanding advances. The Bank’s unused remaining available borrowing capacity at the FHLB was approximately $99.2 million and $36.5 million at September 30, 2023 and December 31, 2022, respectively. At September 30, 2023 and December 31, 2022, the Bank had sufficient collateral at the FHLB to support its obligations and was in compliance with the FHLB’s collateral pledging program. As of September 30, 2023 and December 31, 2022, borrowings include $2.7 million of advances through the FHLB’s Jobs for New England program where certain qualifying small business loans that create or preserve jobs, expand woman-, minority- or veteran- owned businesses or otherwise stimulate the economy in New England communities are offered at an interest rate of 0%.

At September 30, 2023 and December 31, 2022, the Bank had an overnight line of credit with the FHLB that may be drawn up to $3.0 million. Additionally, the Bank had a total of $5.0 million of unsecured Fed Funds borrowing lines of credit with two correspondent banks. The entire balance of all these credit facilities was available at September 30, 2023 and December 31, 2022.

19

Federal Reserve Bank of Boston (“FRB”)

During June 2023, the Bank established two secured credit facilities with the FRB – Bank Term Funding Program (“BTFP”) and Borrower-In-Custody of Collateral Program (“BIC”). On July 25, 2023, the Bank borrowed $25.0 million under the FRB BTFP, for a term of one year, at a fixed annual rate of 5.48%. At September 30, 2023, the Bank’s remaining borrowing capacity is $7.3 million under the BTFP and is based upon eligible collateral, principally government-sponsored enterprise obligations, mortgage-backed securities and collateralized mortgage obligations issued by various U.S. Government agencies, owned as of March 12, 2023. The interest rate for term advances under the BTFP will be the one-year overnight index swap rate plus 10 basis points and fixed for the term of the advance – up to one year - on the day the advance is made. At September 30, 2023, the Bank’s borrowing capacity is $55.5 million under the BIC and is based upon eligible collateral - principally general obligation municipal bonds. The entire balance of this credit facility was available at September 30, 2023.

7.Off-Balance Sheet Credit Exposures

The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, unadvanced funds on loans and standby letters of credit. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but generally includes secured interests in mortgages.

Standby letters of credit are conditional commitments issued by the Bank to guarantee performance by a customer to a third-party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Notional amounts of financial instruments with off-balance sheet credit risk are as follows as of September 30, 2023 and December 31, 2022:

	2023		2022
Unadvanced portions of loans	$	65,773	$	44,929
Commitments to originate loans		7,977		16,134
Standby letters of credit		—		302

The Company records an ACL for off-balance sheet credit exposures that are not unconditionally cancelable through a charge to the provision for credit losses on the Company’s consolidated statements of (loss) income. At September 30, 2023 and December 31, 2022, the ACL for off-balance sheet credit exposures totaled $413,000 and $18,000, respectively, and was included in other liabilities on the Company’s consolidated balance sheets. The provision for credit losses for off-balance sheet credit exposures for the three months ended September 30, 2023 and 2022 was $90,000 and $-0-, respectively. The provision for credit losses for off-balance sheet credit exposures for the nine months ended September 30, 2023 and 2022 was $105,000 and $-0-, respectively.

8.Employee Benefits

401(k) Plan

The Company sponsors a 401(k) defined contribution plan for substantially all employees pursuant to which employees of the Company could elect to make contributions to the plan subject to Internal Revenue Service limits. The Company makes matching and profit-sharing contributions to eligible participants in accordance with plan provisions. The Company’s contributions for the three months ended September 30, 2023 and 2022 were $59,000 and $56,000, respectively, and $163,000 and $153,000 for the nine months ended September 30, 2023 and 2022, respectively.

20

Pension Plan

The Company participated in the Pentegra Defined Benefit Plan for Financial Institutions (The Pentegra DB Plan), a tax-qualified defined benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413 (c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers.

The Company enacted a “hard freeze” for the Pentegra DB Plan as of December 31, 2018, eliminating all future service-related accruals for participants. Prior to this enactment the Company maintained a “soft freeze” status that continued service-related accruals for its active participants with no new participants permitted into the Pentegra DB Plan. On May 26, 2022, the board of directors approved a resolution authorizing the Company to give notice of its intent to withdraw from the Pentegra DB Plan as of September 30, 2022. On September 30, 2022, the Company proceeded with its notification to withdraw from the Pentegra DB Plan as of September 30, 2022. As a result, a contribution amount that achieved a funded status of 100% - market value of plan assets equal to the final withdrawal liability - was due. The final withdrawal liability amounted to $1.5 million of which $200,000 was paid prior to December 31, 2022 and $1.3 million of pension expense was accrued at December 31, 2022 and subsequently paid in January 2023. A final settlement credit of $14,000 was received in June 2023.

Total pension plan (credit) expense for the three months ended September 30, 2023 and 2022 was $-0- and $50,000, respectively, and $(14,000) and $150,000 for the nine months ended September 30, 2023 and 2022, respectively, and is included in salaries and employee benefits expense in the accompanying consolidated statements of (loss) income.

Supplemental Executive Retirement Plans

Salary Continuation Plan

The Company maintains a nonqualified supplemental retirement plan for its current President and its former President. The plan provides supplemental retirement benefits payable in installments over a period of years upon retirement or death. The recorded liability at September 30, 2023 and December 31, 2022 relating to this supplemental retirement plan was $717,000 and $660,000, respectively. The discount rate used to determine the Company’s obligation was 5.00%. The projected rate of salary increase for its current President was 3%. The expense of this salary retirement plan was $32,000 and $20,000 for the three months ended September 30, 2023 and 2022, respectively, and $99,000 and $61,000 for each of the nine months ended September 30, 2023 and 2022, respectively.

Directors Deferred Supplemental Retirement Plan

The Company has a supplemental retirement plan for eligible directors that provides for monthly benefits based upon years of service to the Company, subject to certain limitations as set forth in the agreements. The present value of these future payments is being accrued over the estimated period of service. The estimated liability at September 30, 2023 and December 31, 2022 relating to this plan was $563,000 and $537,000, respectively. The discount rate used to determine the Company’s obligation was 6.25% at September 30, 2023 and December 31, 2022. Total supplemental retirement plan expense amounted to $19,000 and $22,000 for the three months ended September 30, 2023 and 2022, respectively, and $57,000 and $54,000 for the nine months ended September 30, 2023 and 2022, respectively.

The Company enacted a “hard freeze” for this supplemental retirement plan as of January 1, 2022. On February 10, 2022, the Bank and the non-employee members of the board of directors of the Bank entered into amendments to the Supplemental Director Retirement Agreements (the “Agreements”) previously entered into by the Bank and the directors. The amendments eliminate the formula for determining the normal annual retirement benefit (previously “70% of Final Base Fee”) and replaces it with a fixed annual benefit of $20,000. The amendments also eliminate the formula for determining the benefit payable on a change in control (previously tied to the normal annual retirement formula with certain imputed increases in the Base Fee) and replacing it with a fixed amount equal to the present value of $200,000. The effect of the amendments is to eliminate the variable and increasing costs associated with the Agreements. Instead, since the normal annual retirement benefit is now a fixed amount, the future costs associated with the Agreements is now more predictable. It is the intention of the Bank that no new directors of the Bank would enter into similar agreements.

Additionally, the Company has a deferred director’s fee plan, which allows members of the board of directors to defer the receipt of fees that otherwise would be paid to them in cash. At September 30, 2023 and December 31, 2022, the total deferred directors' fees amounted to $675,000 and $553,000, respectively.

9.Stock Based Compensation

Employee Stock Ownership Plan

The Company maintains the First Seacoast Bank Employee Stock Ownership Plan (“ESOP”) to provide eligible employees of the Company the opportunity to own Company stock. The ESOP is a tax-qualified retirement plan for the benefit of Company

21

employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal limits. The number of shares committed to be released per year through 2047 is 15,354.

The ESOP funded its purchase of 383,851 shares through a loan from the Company equal to 100% of the aggregate purchase price of the common stock. The ESOP trustee is repaying the loan principally through the Bank’s contributions to the ESOP over the remaining loan term that matures on December 31, 2047. At September 30, 2023 and December 31, 2022, the remaining principal balance on the ESOP debt was $4.3 million and $2.0 million, respectively.

Under applicable accounting requirements, the Company records compensation expense for the ESOP equal to fair market value of shares when they are committed to be released from the suspense account to participants’ accounts under the plan. Total compensation expense recognized in connection with the ESOP for the three months ended September 30, 2023 and 2022 was $29,000 and $32,000, respectively, and $100,000 and $94,000 for the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023 and December 31, 2022, total unearned compensation for the ESOP was $4.0 million and $1.9 million, respectively.

	September 30, 2023		December 31, 2022(1)
Shares held by the ESOP include the following:
Allocated		39,864		29,898
Committed to be allocated		11,517		9,966
Unallocated		372,334		159,451
Total		423,715		199,315

(1) Adjusted for conversion of First Seacoast Bancorp, Inc.

The fair value of unallocated shares was approximately $2.8 million and $1.8 million at September 30, 2023 and December 31, 2022, respectively.

Equity Incentive Plan

Effective May 27, 2021, the Company adopted the First Seacoast Bancorp 2021 Equity Incentive Plan (the “2021 Plan”). The Company’s stockholders approved the 2021 plan on that date. The 2021 Plan provides for the granting of incentive and non-statutory stock options to purchase shares of common stock and the granting of shares of restricted stock awards and restricted stock units.

The 2021 Plan authorizes the issuance or delivery to participants of up to 348,802 converted shares of common stock (adjusted for the second step conversion transaction). Of this number, the maximum number of shares of common stock that may be issued pursuant to the exercise of stock options is 249,144 shares (adjusted for the second step conversion transaction) and the maximum number of shares of common stock that may be issued as restricted stock awards or restricted stock units is 99,657 shares (adjusted for the second step conversion transaction). The exercise price of stock options may not be less than the fair market value on the date the stock option is granted. Further, stock options may not be granted with a term that is longer than 10 years.

On May 25, 2023, 249,144 incentive and non-statutory stock options to purchase shares of common stock were granted to directors for their services on the board of directors and certain members of management. As of December 31, 2022, no stock options had been granted. The Company estimates the grant date fair value of each option using the Black-Scholes option pricing model. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected life of the option, risk-free interest rates and expected dividend yields of the common stock. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated grant date fair value of each option is expensed as employee benefits expense ratably over the vesting period. The expense recognized for this equity incentive plan was $67,000 and $-0-, for the three months ended September 30, 2023 and 2022, respectively, which provided a tax benefit of $18,000 and $-0-, respectively. The expense recognized for the nine months ended September 30, 2023 and 2022 was $88,000 and $-0-, respectively, which provided a tax benefit of $24,000 and $-0-, respectively. At September 30, 2023, total unrecognized compensation expense for this equity incentive plan was $660,000 with a 2.7 year weighted average future recognition period.

22

A summary of stock options outstanding as of September 30, 2023 and changes during the nine months ended September 30, 2023 is presented below:

	September 30, 2023
	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)		Aggregate Intrinsic Value
Stock options:								(In Thousands)
Balance at beginning of period		—		$	—		—	$	—
Granted		249,144			8.06		9.7		—
Vested		—			—		—		—
Forfeited		—			—		—		—
Balance at end of period		249,144		$	8.06		9.7	$	—
Date of grant	5/25/2023
Options granted		249,144
Exercise price	$	8.06
Vesting period(1)	3 years
Expiration date	5/25/2033
Expected volatility		27.8	%
Expected term	6.5 years
Expected dividend yield		0	%
Expected forfeiture rate		0	%
Risk free interest rate		3.9	%
Fair value per option	$	3.00
(1) Vesting is ratably and the period begins on the date of the grant.

On June 1, 2023, 2,478 restricted stock awards were granted to a certain member of management at $7.99 per share. The total fair value related to the June 1, 2023 grant was $20,000. These restricted stock awards time-vest 50% as of November 18, 2023 and 50% as of November 18, 2024 and have been fair valued as of the date of grant. On November 18, 2021, 98,850 restricted stock awards were granted to directors and certain members of management at $11.95 per share (adjusted for the second step conversion transaction). The total fair value related to the November 18, 2021 grant was $1.2 million. These restricted stock awards time-vest over a three year period and have been fair valued as of the date of grant. The holders of restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting rights when granted and dividend rights when vested. A summary of non-vested restricted shares outstanding as of September 30, 2023 and December 31, 2022 and changes during the nine months ended September 30, 2023 and year ended December 31, 2022 is presented below:

	September 30, 2023
	Number of Shares		Weighted Average Grant Value
Restricted stock:
Non-vested at beginning of period		64,785	$	11.95
Granted		2,478		7.99
Vested		—		—
Forfeited		—		—
Non-vested at end of period		67,263	$	11.80

	December 31, 2022
	Number of Shares		Weighted Average Grant Value
Restricted stock:
Non-vested at beginning of period		98,850	$	11.95
Granted		—		—
Vested		(32,393)		11.95
Forfeited		(1,672)		11.95
Non-vested at end of period		64,785	$	11.95

23

The expense recognized for this equity incentive plan was $102,000 and $98,000, for the three months ended September 30, 2023 and 2022, respectively, and $298,000 and $295,000, for the nine months ended September 30, 2023 and 2022, respectively, which provided a tax benefit of $27,000, for each of the three months ended September 30, 2023 and 2022, and $80,000 and $77,000 for the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023 and December 31, 2022, total unrecognized compensation expense for this equity incentive plan was $452,000 and $729,000, respectively, with a 1.1 and 1.9 year weighted average future recognition period, respectively.

10.Leases

The Company is obligated under various lease agreements for one of its branch offices and certain equipment. These agreements are accounted for as operating leases and their terms expire between 2024 and 2031 and, in some instances, contain options to renew for periods of up to four years. The Company has no financing leases.

The Company adopted ASU 2016-02 – Leases (Topic 842)– on January 1, 2022 and began recognizing its operating leases on its consolidated balance sheet by recording a net lease liability, representing the Company’s legal obligation to make these lease payments, and a Right-Of-Use (“ROU”) asset, representing the Company’s legal right to use the leased assets. The Company, by policy, does not include renewal options for leases as part of its ROU asset and lease liabilities unless they are deemed reasonably certain to exercise. The Company does not have any sub-lease agreements.

The following table summarizes information related to the Company’s right-of-use asset and net lease liability:

	September 30, 2023
	Operating Leases		Balance Sheet Location
	(Dollars in thousands)
Right-of-use asset	$	612	Other Assets
Net lease liability		612	Other Liabilities
	December 31, 2022
	Operating Leases		Balance Sheet Location
	(Dollars in thousands)
Right-of-use asset	$	202	Other Assets
Net lease liability		202	Other Liabilities

The Company determines whether a contract contains a lease based on whether a contract, or a part of a contract, conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The discount rate is either implicit in the lease or, when a rate cannot be readily determined, the Company’s incremental borrowing rate is used. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term.

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The components of operating lease cost and other related information are as follows:

	Three months ended September 30,
(Dollars in thousands)	2023			2022
Operating lease cost	$	16		$	10
Short-term lease cost		—			—
Variable lease cost (cost excluded from lease payments)		—			—
Sublease income		—			—
Total operating lease cost		16			10
Other Information:
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases		16			10
Operating lease - operating cash flows (liability reduction)	$	—		$	—
Weighted average lease term remaining (in years)		6.06			4.59
Weighted average discount rate		4.59	%		3.28	%
	Nine months ended September 30,
(Dollars in thousands)	2023			2022
Operating lease cost	$	38		$	42
Short-term lease cost		—			—
Variable lease cost (cost excluded from lease payments)		—			—
Sublease income		—			—
Total operating lease cost		38			42
Other Information:
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases		38			42
Operating lease - operating cash flows (liability reduction)	$	—		$	—
Weighted average lease term remaining (in years)		6.06			4.59
Weighted average discount rate		4.59	%		3.28	%

The total minimum lease payments due in future periods for lease agreements in effect at September 30, 2023 were as follows:

As of September 30, 2023	Future Minimum Lease Payments
	(Dollars in thousands)
Remainder of 2023	$	32
2024		125
2025		122
2026		120
2027		307
Total minimum lease payments		706
Less: interest		(94	)
Total lease liability	$	612

During the three months ended September 30, 2023 the Company completed a conversion of all of its branch ATMs from owned equipment to leased equipment and recognized a $2,000 loss on the disposition of all ATM-related equipment. The Company's obligation under the operating lease related to these ATMs expires in August 2030 and has future lease payments of $529,000 as of September 30, 2023. Total lease expense was $6,000 and $-0- for the three and nine months ended September 30, 2023 and 2022, respectively.

The Company's obligation under the operating lease related to one of its branches expires in August 2027 and has future lease payments of $161,000 as of September 30, 2023. Total lease expense was $9,000 and $8,000 for the three months ended September 30, 2023 and 2022, respectively, and $27,000 and $24,000 for the nine months ended September 30, 2023 and 2022, respectively. This lease agreement contains clauses calling for escalation of minimum lease payments contingent on increases in LIBOR, or a similar replacement index, and the consumer price index.

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11.Other Comprehensive Loss

The Company reports certain items as “other comprehensive income or loss” and reflects total accumulated other comprehensive loss (“AOCI”) in the consolidated financial statements for all periods containing elements of other comprehensive income or loss. The following table presents a reconciliation of the changes in the components of other comprehensive income or loss for the dates indicated, including the amount of income tax expense or benefit allocated to each component of other comprehensive income or loss:

	Three Months Ended September 30,
Reclassification Adjustments	2023			2022			Affected Line Item in Consolidated Statements of (Loss) Income
	(Dollars in thousands)
Gains on sale of securities available-for-sale	$	—		$	—		Securities gains, net
Tax effect		—			—		Income tax (benefit) expense
		—			—		Net (loss) income
Net amortization of bond premiums		222			264		Interest on debt securities
Tax effect		(60	)		(71	)	Income tax (benefit) expense
		162			193		Net (loss) income
Net interest expense on swaps		—			(41	)	Interest on borrowings
Tax effect		—			11		Income tax (benefit) expense
		—			(30	)	Net (loss) income
Total reclassification adjustments	$	162		$	163

	Nine Months Ended September 30,
Reclassification Adjustments	2023			2022			Affected Line Item in Consolidated Statements of (Loss) Income
	(Dollars in thousands)
Gains on sale of securities available-for-sale	$	—		$	(52	)	Securities gains, net
Tax effect		—			14		Income tax (benefit) expense
		—			(38	)	Net (loss) income
Net amortization of bond premiums		712			751		Interest on debt securities
Tax effect		(191	)		(203	)	Income tax (benefit) expense
		521			548		Net (loss) income
Gains on termination of interest rate swaps		(849	)		—		Gain on termination of interest rate swaps
Tax effect		230			—		Income tax (benefit) expense
		(619	)		—		Net (loss) income
Net interest expense on swaps		—			(34	)	Interest on borrowings
Tax effect		—			9		Income tax (benefit) expense
		—			(25	)	Net (loss) income
Total reclassification adjustments	$	(98	)	$	485

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The following tables present the changes in each component of AOCI for the periods indicated:

(Dollars in thousands)	Net Unrealized (Losses) Gains on AFS Securities(1)			Net Unrealized Gains (Losses) on Cash Flow Hedges(1)			AOCI(1)
Balance at June 30, 2023	$	(9,922	)	$	—		$	(9,922	)
Other comprehensive loss before reclassification		(5,023	)		—			(5,023	)
Amounts reclassified from AOCI		162			—			162
Other comprehensive loss		(4,861	)		—			(4,861	)
Balance at September 30, 2023	$	(14,783	)	$	—		$	(14,783	)
Balance at June 30, 2022	$	(8,626	)	$	543		$	(8,083	)
Other comprehensive (loss) income before reclassification		(5,153	)		250			(4,903	)
Amounts reclassified from AOCI		193			(30	)		163
Other comprehensive (loss) income		(4,960	)		220			(4,740	)
Balance at September 30, 2022	$	(13,586	)	$	763		$	(12,823	)
Balance at December 31, 2022	$	(10,428	)	$	701		$	(9,727	)
Other comprehensive loss before reclassification		(4,876	)		(82	)		(4,958	)
Amounts reclassified from AOCI		521			(619	)		(98	)
Other comprehensive loss		(4,355	)		(701	)		(5,056	)
Balance at September 30, 2023	$	(14,783	)	$	—		$	(14,783	)
Balance at December 31, 2021	$	575		$	146		$	721
Other comprehensive (loss) income before reclassification		(14,671	)		642			(14,029	)
Amounts reclassified from AOCI		510			(25	)		485
Other comprehensive (loss) income		(14,161	)		617			(13,544	)
Balance at September 30, 2022	$	(13,586	)	$	763		$	(12,823	)

(1)All amounts are net of tax.

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12.Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below). As of September 30, 2023, the most recent notification from the Office of the Comptroller of the Currency categorized the Bank, as well capitalized under the regulatory framework, for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum capital amounts and ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Management believes that, as of September 30, 2023 and December 31, 2022, the Bank met all capital adequacy requirements to which it was subject, including the capital conservation buffer, at those dates.

The following table presents actual and required capital ratios as of September 30, 2023 and December 31, 2022 for the Bank under the Basel Committee on Banking Supervisions capital guidelines for U.S. banks (“Basel III Capital Rules”) as fully phased-in on January 1, 2019. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

						Minimum Capital					Minimum Capital Required to be Well					Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer
	Actual					Requirement					Capitalized					Fully Phased-In
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2023
Total Capital (to risk-weighted assets)	$	65,432		17.92	%	$	29,203		8.00	%	$	36,504		10.00	%	$	38,329		10.50	%
Tier 1 Capital (to risk-weighted assets)		61,625		16.88			21,902		6.00			29,203		8.00			31,028		8.50
Tier 1 Capital (to average assets)		61,625		11.12			22,174		4.00			27,718		5.00			22,174		4.00
Common Equity Tier 1 (to risk-weighted assets)		61,625		16.88			16,427		4.50			23,727		6.50			25,552		7.00

						Minimum Capital					Minimum Capital Required to be Well					Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer
	Actual					Requirement					Capitalized					Fully Phased-In
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2022
Total Capital (to risk-weighted assets)	$	52,475		15.53	%	$	27,028		8.00	%	$	33,785		10.00	%	$	35,474		10.50	%
Tier 1 Capital (to risk-weighted assets)		48,821		14.45			20,271		6.00			27,028		8.00			28,717		8.50
Tier 1 Capital (to average assets)		48,821		9.20			21,224		4.00			26,530		5.00			21,224		4.00
Common Equity Tier 1 (to risk-weighted assets)		48,821		14.45			15,203		4.50			21,960		6.50			23,649		7.00

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13.Treasury Stock

Common Stock Repurchases

On September 23, 2020, the board of directors of First Seacoast Bancorp (a federal corporation) authorized the repurchase of up to 114,403 shares of First Seacoast Bancorp's (a federal corporation) outstanding common stock (adjusted for the second step conversion transaction), which equals approximately 2.2% of all shares then outstanding and approximately 5.0% of the then outstanding shares owned by stockholders other than First Seacoast Bancorp, MHC. The Company holds repurchased shares in its treasury. As of December 31, 2022, First Seacoast Bancorp (a federal corporation) had repurchased all 114,403 shares authorized (adjusted for the second step conversion transaction).

Equity Incentive Plan

A certain member of management elected to surrender 496 shares (adjusted for the second step conversion transaction) of a vested restricted stock award on November 18, 2022 in lieu of a cash payment for the tax liabilities associated with the time-vesting of their award. The Company holds these shares in its treasury. As of September 30, 2023 and December 31, 2022, the Company held a total of 114,899 shares in its treasury (adjusted for the second step conversion transaction).

14.Derivatives and Hedging Activities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. These derivative financial instruments are reported at fair value in other assets or other liabilities and are not reported on a net basis.

Derivatives Designated as Hedging Instruments

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed rate payments or the receipt of fixed rate amounts from a counterparty in exchange for the Company making variable rate payments over the life of the agreements without exchange of the underlying notional amount.

The Company entered into two $5 million notional interest rate swaps that were designated as cash flow hedges on 90-day advances from FHLB. The purpose of these cash flow hedges was to reduce potential interest rate risk by swapping a variable rate borrowing to a fixed rate. Management deemed it prudent to limit the variability of these interest payments by entering into these interest rate swap agreements. These agreements provided for the Company to receive payments at a variable rate determined by a specific index (three-month LIBOR) in exchange for making payments at a fixed rate. Publication of LIBOR is expected to cease in December of 2024. The swap agreements allowed for substitution of an alternative reference rate such as the secured overnight financing rate (“SOFR”) at that time.

On January 17, 2023, the Company terminated both of its interest rate swap derivative instruments at a gain of $849,000. The Company recognized the change in fair value of these hedging instruments, previously accumulated in AOCI, as a gain on termination of interest rate swaps in its consolidated statement of (loss) income for the nine months ended September 30, 2023 as it was determined that it was probable that the hedged forecasted transaction - the variability in cash flows related to 90-day advances from the FHLB - would not occur by the end of the original maturity dates of the hedging instruments. The use of derivatives for debt hedging as part of the Company's overall interest rate risk management strategy has been infrequent as the Company has utilized other interest rate risk management activities to achieve similar business purposes. Also, $536,000 of cash posted to the counterparty as collateral on these interest rate swaps contracts was returned to the Company. The changes in the fair value of interest rate swaps were reported in other comprehensive loss and were subsequently reclassified into interest expense or income in the period that the hedged transactions affected earnings. The change in fair value for these derivative instruments for the three months ended September 30, 2023 and 2022, was $-0- and $302,000, respectively, and $(112,000) and $846,000 for the nine months ended September 30, 2023 and 2022, respectively. At December 31, 2022, the fair value of interest rate swap derivatives resulted in an asset of $961,000, and is recorded in other assets.

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The following table summarizes the Company's cash flow hedges associated with its interest rate risk management activities:

				December 31, 2022
(Dollars in thousands)	Start Date	Maturity Date	Rate	Notional		Assets		Liabilities
Debt Hedging
Hedging Instruments:
Interest Rate Swap 2020	4/13/2020	4/13/2025	0.68%	$	5,000	$	431	$	—
Interest Rate Swap 2021	4/13/2021	4/13/2026	0.74%		5,000		530		—
Total Hedging Instruments				$	10,000	$	961	$	—
Hedged Items:
Variability in cash flows related to       90-day FHLB advances				N/A		$	—	$	10,000

The following tables summarize the effect of cash flow hedge accounting on the consolidated statements of (loss) income for the three and nine months ended September 30, 2023 and 2022 :

	Location and Amount of Gain or Loss Recognized in Consolidated Statements of (Loss) Income
	Three Months Ended September 30,
(Dollars in thousands)	2023				2022
	Interest Income (Expense)		Other Income (Expense)		Interest Income (Expense)		Other Income (Expense)
The effect of cash flow hedge accounting:
Amount reclassified from AOCI into expense	$	—	$	—	$	41	$	—

	Location and Amount of Gain or Loss Recognized in Consolidated Statements of (Loss) Income
	Nine Months Ended September 30,
(Dollars in thousands)	2023				2022
	Interest Income (Expense)		Other Income (Expense)		Interest Income (Expense)		Other Income (Expense)
The effect of cash flow hedge accounting:
Amount reclassified from AOCI into expense	$	—	$	—	$	34	$	—

The credit risk associated with these interest rate swaps was the risk of default by the counterparty. To minimize this risk, the Company only enters into interest rate swap agreements with highly rated counterparties that management believes to be creditworthy. The notional amounts of these agreements did not represent amounts exchanged by the parties and, therefore, was not a measure of the potential loss exposure. Risk management results for the three and nine months ended September 30, 2023 and 2022, related to the balance sheet hedging of $10.0 million of 90 day FHLB advances, included in borrowings, indicated that the hedge was 100% effective and there was no component of the derivative instruments’ unrealized gain or loss which was excluded from the assessment of hedge effectiveness. As of September 30, 2023 and December 31, 2022, the Company posted $-0- and $535,000, respectively, of cash to the counterparty as collateral on these interest rate swap contracts, which was presented within cash and due from banks on the consolidated balance sheets.

Fair Value Hedges of Interest Rate Risk

On June 5, 2023, the Company entered into an interest rate contract that was designated as a fair value hedge utilizing a pay fixed interest rate swap to hedge a portion of the residential mortgage loan portfolio's change in fair value attributable to the movement in the one-month SOFR. The Company is exposed to changes in the fair value of certain pools of fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. The Company's interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreement without the exchange of the underlying notional amount. The hedging strategy effectively converts these mortgage loans to SOFR floating rate loans for the term of the swap starting on the effective date.

For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income.

30

As of September 30, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:

Location in Consolidated Balance Sheets	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
(Dollars in thousands)	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Total loans	$	24,553	$	—	$	447	$	—
Total	$	24,553	$	—	$	447	$	—

These amounts include the amortized cost basis of closed portfolios of fixed-rate residential loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At inception, the amortized cost basis of the closed portfolios used in these hedging relationships was $63.7 million. The cumulative basis adjustments associated with these hedging relationships was $(447,000) and the notional amount of the designated hedged items were $25.0 million. Under the "portfolio layer" approach, the Company designated a $25.0 million notional amount of portfolio assets that are not expected to be affected by prepayments, defaults and other factors affecting the timing and amount of cash flows of the designated hedged layer. The Company had no fair value hedges at December 31, 2022. The notional amounts of these agreements do not represent amounts exchanged by the parties and, thus, are not a measure of potential loss exposure. At September 30, 2023, the Company’s fair value hedges had a remaining maturity of 2.67 years, an average pay fixed rate of 3.99% and an average received rate of 5.19%.

Derivatives not Designated as Hedging Instruments

Customer Loan Swaps

Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain commercial banking customers. On May 19, 2023, the Company entered into an interest rate swap with a commercial loan borrower. The Company executes interest rate swaps with customers to facilitate their respective risk management strategies. The interest rate swap contract with the commercial loan borrower allows them to convert floating-rate loan payments based on SOFR to fixed-rate loan payments. This interest rate swap is simultaneously hedged by an offsetting derivative that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet hedge accounting requirements, changes in the fair value of both the customer derivative and the offsetting derivative are recognized directly in earnings.

The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheet:

	Derivative Assets					Derivative Liabilities
	Notional Amount		Location	Fair Value		Notional Amount		Location	Fair Value
(Dollars in thousands)
September 30, 2023
Derivatives designated as
hedging instruments:
Interest rate contracts - fair value hedge	$	25,000	Other assets	$	447	$	—	Other liabilities	$	—
Total derivatives designated as
hedging instruments				$	447				$	—
Derivatives not designated as
hedging instruments:
Customer loan swaps	$	4,799	Other assets	$	158	$	4,799	Other liabilities	$	158
Total derivatives not designated as
hedging instruments				$	158				$	158
December 31, 2022
Derivatives designated as
hedging instruments:
Interest rate contracts - cash flow hedge	$	10,000	Other assets	$	961	$	—	Other liabilities	$	—
Total derivatives designated as
hedging instruments				$	961				$	—

31

The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the consolidated statements of (loss) income for the periods presented:

		Amount of (Loss) Gain Recognized in Income
		Three Months Ended					Nine Months Ended
		September 30, 2023			September 30, 2022		September 30, 2023		September 30, 2022
(Dollars in thousands)	Location of (Loss) Gain
Customer loan swaps	Interest and fees on loans	$	(12	)	$	—	$	83	$	—

Credit-risk-related Contingent Features

By entering into derivative transactions, the Company is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company’s credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty. The Company seeks to minimize counterparty credit risk through credit approvals, limits, and other monitoring procedures. Institutional counterparties must have an investment grade credit rating and be approved by the Company’s board of directors. As such, management believes the risk of incurring credit losses on derivative contracts with institutional counterparties is remote. As of September 30, 2023 and December 31, 2022, the Company posted $786,000 and $535,000, respectively, of cash to the counterparties as collateral on its interest rate swap contracts and customer loan swaps, which was presented within cash and due from banks on the consolidated balance sheets.

Balance Sheet Offsetting

Certain financial instruments may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. The Company’s derivative transactions with institutional counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Generally, the Company does not offset such financial instruments for financial reporting purposes.

The following tables present the information about derivative positions that are eligible for offset in the consolidated balance sheets as of September 30, 2023 and December 31, 2022:

							Gross Amounts Not Offset
(Dollars in thousands)	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Recognized		Financial Instruments Pledged (Received)		Cash Collateral Pledged (Received)(1)		Net Amount
September 30, 2023
Derivative Assets:
Interest rate contracts (2)	$	447	$	—	$	447	$	—	$	447	$	—
Customer loan swaps - commercial customer (3)		158		—		158		—		—		158
Total	$	605	$	—	$	605	$	—	$	447	$	158
Derivative Liabilities:
Customer loan swaps - dealer bank (3)	$	158	$	—	$	158	$	—	$	158	$	—
December 31, 2022
Derivative Assets:
Interest rate contracts (2)	$	961	$	—	$	961	$	—	$	535	$	426

(1) The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated balance sheets.

(2) Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement with the counterparty and settles collateral on a net basis for all contracts.

(3) The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. The Company does not post collateral to its commercial customers as part of its contract.

At September 30, 2023 and December 31, 2022, there were no derivatives in a net liability position related to these agreements.

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15.Fair Values of Assets and Liabilities

Determination of Fair Value

The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from one level to another. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value of cash flows or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded, and the observability and reliability of the assumptions used to determine fair value.

Level 1 - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 - Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 - Level 3 inputs are unobservable inputs for the asset or liability.

For assets and liabilities, fair value is based upon the lowest level of observable input that is significant to the fair value measurement.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market-based parameters. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and, therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented therein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all the Company’s financial assets and financial liabilities carried at fair value at September 30, 2023 and December 31, 2022.

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Financial Assets and Financial Liabilities: Financial assets and financial liabilities measured at fair value on a recurring basis include the following:

Securities Available-for-Sale: The Company’s investment in U.S. Government-sponsored entities bonds, U.S Government agency small business administration pools guaranteed by the SBA, collateralized mortgage obligations issued by the FHLMC, residential mortgage-backed securities and other municipal bonds is generally classified within Level 2 of the fair value hierarchy. For these securities, the Company obtains fair value measurements from independent pricing services. The fair value measurements consider observable data that may include reported trades, dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions.

Mortgage Servicing Rights: Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes interest rate, prepayment speed and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (see Note 4, Loan Servicing, for more information). These assumptions are inherently sensitive to change as these unobservable inputs are not based on quoted prices in active markets or otherwise observable.

Derivative Instruments and Hedges: The valuation of these instruments is determined using the discounted cash flow method on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities.

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
September 30, 2023
Securities available-for-sale:
U.S. Government-sponsored enterprises obligations	$	1,769	$	—	$	1,769	$	—
U.S Government agency small business administration    pools guaranteed by the SBA		7,244		—		7,244		—
Collateralized mortgage obligations issued by    the FHLMC, FNMA and GNMA		5,592		—		5,592		—
Residential mortgage-backed-securities		20,732		—		20,732		—
Municipal bonds		59,642		—		59,642		—
Corporate debt		486		—		486		—
Corporate subordinated debt		7,087		—		7,087		—
Other assets:
Mortgage servicing rights		338		—		—		338
Derivatives		605		—		605		—
Other liabilities:
Derivatives		158		—		158		—

	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
December 31, 2022
Securities available-for-sale:
U.S. Government-sponsored enterprises obligations	$	1,826	$	—	$	1,826	$	—
U.S Government agency small business administration    pools guaranteed by the SBA		8,359		—		8,359		—
Collateralized mortgage obligations issued by    the FHLMC, FNMA and GNMA		6,222		—		6,222		—
Residential mortgage-backed-securities		21,823		—		21,823		—
Municipal bonds		62,416		—		62,416		—
Corporate debt		497		—		497		—
Corporate subordinated debt		4,957		—		4,957		—
Other assets:
Mortgage servicing rights	$	357		—		—		357
Derivatives		961		—		961		—

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For the nine months ended September 30, 2023 and 2022, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:

(Dollars in thousands)	Mortgage Servicing Rights (1)
Balance as of January 1, 2023	$	357
Included in net (loss) income		(19	)
Balance as of September 30, 2023	$	338
Total unrealized net gains (losses) included in net income related to assets still held as of September 30, 2023	$	—
Balance as of January 1, 2022	$	322
Included in net (loss) income		47
Balance as of September 30, 2022	$	369
Total unrealized net gains (losses) included in net income related to assets still held as of September 30, 2022	$	—

(1)Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of (loss) income.

For Level 3 assets measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

	September 30, 2023
(Dollars in thousands)	Valuation Technique	Description	Range	Weighted Average (1)	Fair Value
Mortgage Servicing Rights	Discounted Cash Flow	Prepayment Rate	5.66% - 13.52%	6.70%	$	338
		Discount Rate	10.13% - 10.13%	10.13%
		Delinquency Rate	1.90% - 2.48%	2.00%
		Default Rate	0.14% - 0.18%	0.15%

	December 31, 2022
(Dollars in thousands)	Valuation Technique	Description	Range	Weighted Average (1)	Fair Value
Mortgage Servicing Rights	Discounted Cash Flow	Prepayment Rate	6.48% - 23.49%	7.78%	$	357
		Discount Rate	9.50% - 9.50%	9.50%
		Delinquency Rate	2.13% - 2.79%	2.24%
		Default Rate	0.14% - 0.20%	0.15%

(1)Unobservable inputs for mortgage servicing rights were weighted by loan amount.

The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights are the weighted-average prepayment rate, weighted-average discount rate, weighted average delinquency rate and weighted-average default rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the prepayment rate and the discount rate are not directly interrelated, they generally move in opposite directions of each other.

The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. Observable and unobservable inputs are entered into this model as prescribed by an independent third party to arrive at an estimated fair value. See Note 4, Loan Servicing, for a roll forward of our Level 3 item and related inputs used to determine fair value at September 30, 2023.

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Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring basis during the reported periods may include certain individually evaluated loans reported at the fair value of the underlying collateral. Fair value is measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, real estate collateral related nonrecurring fair value measurement adjustments have generally been classified as Level 3.

Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. Financial assets measured at fair value on a non-recurring basis during the reported periods also include loans held for sale. Residential mortgage loans held for sale are recorded at the lower of cost or fair value and are therefore measured at fair value on a non-recurring basis. The fair values for loans held for sale are estimated based on commitments in effect from investors or prevailing market prices for loans with similar terms to borrowers of similar credit quality and are included in Level 3. At September 30, 2023 and December 31, 2022, there were no assets or liabilities measured at fair value on a non-recurring basis.

Non-Financial Assets and Non-Financial Liabilities: The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Non-financial assets measured at fair value on a non-recurring basis generally include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, are remeasured at fair value through a write-down included in other non-interest expense. There were no foreclosed assets at September 30, 2023 or December 31, 2022.

ASC Topic 825,“Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. ASU 2016-01 requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The exit price notion is a market-based measurement of fair value that is represented by the price to sell an asset or transfer a liability in the principal market (or most advantageous market in the absence of a principal market) on the measurement date. At September 30, 2023 and December 31, 2022, fair values of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors.

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Summary of Fair Values of Financial Instruments not Carried at Fair Value

The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments at September 30, 2023 and December 31, 2022 are as follows:

(Dollars in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2023
Financial Assets:
Cash and due from banks	$	7,168	$	7,168	$	7,168	$	—	$	—
Federal Home Loan Bank stock		1,972		1,972		—		1,972		—
Bank-owned life insurance		4,642		4,642		—		4,642		—
Loans, net		424,136		372,797		—		—		372,797
Accrued interest receivable		2,130		2,130		2,130		—		—
Financial Liabilities:
Deposits	$	411,785	$	409,866	$	327,029	$	82,837	$	—
Advances from Federal Home Loan Bank		44,877		44,435		—		44,435		—
Advances from Federal Reserve Bank		25,000		25,024		—		25,024		—
Mortgagors’ tax escrow		2,381		2,381		—		2,381		—
Accrued interest payable		509		509		509		—		—
December 31, 2022
Financial Assets:
Cash and due from banks	$	8,250	$	8,250	$	8,250	$	—	$	—
Interest-bearing time deposits with other banks		747		747		—		747		—
Federal Home Loan Bank stock		3,502		3,502		—		3,502		—
Bank-owned life insurance		4,561		4,561		—		4,561		—
Loans, net		398,924		361,402		—		—		361,402
Accrued interest receivable		1,988		1,988		1,988		—		—
Financial Liabilities:
Deposits	$	382,363	$	379,714	$	320,624	$	59,090	$	—
Advances from Federal Home Loan Bank		99,397		97,675		—		97,675		—
Mortgagors’ tax escrow		938		938		—		938		—
Accrued interest payable		95		95		95		—		—

16.Subsequent Events

During October 2023, the Company purchased $25.0 million of securities available-for-sale. These purchases consisted of $5.0 million of floating rate U.S. Government agency small business administration pools guaranteed by SBA, $10.0 million of residential mortgage-backed securities and $10.0 million of municipal bonds. The average yield for these investment purchases is expected to be approximately 6.37%.

On October 31, 2023, the Company agreed to a contract extension with its core technology provider, FISERV. The new agreement expires on April 30, 2032, with an unconditional option to exit the agreement in April 2028 and includes lower pricing for transaction and processing services that become effective immediately.

On November 1, 2023, the Company borrowed $25.0 million from the FHLB at a rate of 4.48%, which is callable by the FHLB on May 1, 2024 and quarterly thereafter.

On November 1, 2023, the Company entered into an interest rate contract with a notional amount of $25.0 million that was designated as a fair value hedge utilizing a pay fixed interest rate swap to hedge a portion of the residential mortgage loan portfolio's change in fair value attributable to the movement in the one-month SOFR. This fair value hedge has a maturity of 3 years, a pay fixed rate of 4.67% and a receive rate, as of November 1, 2023, of 5.31%.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General

Management’s discussion and analysis of financial condition and results of operations is intended to assist in understanding the Company’s consolidated financial condition at September 30, 2023 and consolidated results of operations for the three and nine months ended September 30, 2023 and 2022. It should be read in conjunction with our unaudited consolidated financial statements and accompanying notes presented elsewhere in this report and with the Company’s audited consolidated financial statements and accompanying notes presented in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed on March 24, 2023 with the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation.

Overview

Our business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations and borrowings from the FHLB, in one- to four-family residential real estate loans, commercial real estate and multi-family loans, acquisition, development and land loans, commercial and industrial loans, home equity loans and lines of credit and consumer loans. In recent years, we have increased our focus, consistent with what we believe to be conservative underwriting standards, on originating higher yielding commercial real estate and commercial and industrial loans.

We conduct our operations from four full-service banking offices in Strafford County, New Hampshire and one full-service banking office in Rockingham County, New Hampshire. We consider our primary lending market area to be Strafford and Rockingham Counties in New Hampshire and York County in Southern Maine.

Cautionary Note Regarding Forward-Looking Statements

This quarterly report contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,” “will,” “may” and words of similar meaning. These forward-looking statements include, but are not limited to:

•statements of our goals, intentions and expectations;

•statements regarding our business plans, prospects, growth and operating strategies;

•statements regarding the quality of our loan and investment portfolios; and

•estimates of our risks and future costs and benefits.

These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

•general economic conditions, either nationally or in our market areas, that are worse than expected;

•changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses;

•our ability to access cost-effective funding;

•fluctuations in real estate values and both residential and commercial real estate market conditions;

•demand for loans and deposits in our market area;

•our ability to implement and change our business strategies;

•competition among depository and other financial institutions;

•inflation and changes in the interest rate environment that reduce our margins and yields, our mortgage banking revenues, the fair value of financial instruments or our level of loan originations or increase the level of defaults, losses and prepayments on loans we have made and make;

•adverse changes in the securities or secondary mortgage markets;

•changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements and insurance premiums;

•changes in the quality or composition of our loan or investment portfolios;

•technological changes that may be more difficult or expensive than expected;

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•the inability of third-party providers to perform as expected;

•our ability to manage market risk, credit risk and operational risk in the current economic environment;

•our ability to enter new markets successfully and capitalize on growth opportunities;

•system failures or breaches of our network security;

•electronic fraudulent activity within the financial services industry;

•our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto;

•changes in consumer spending, borrowing and savings habits;

•changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board;

•our ability to retain key employees;

•our compensation expense associated with equity allocated or awarded to our employees; and

•changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

Critical Accounting Policies and Use of Critical Accounting Estimates

The discussion and analysis of the financial condition and results of operations are based on our consolidated financial statements, which are prepared in conformity with generally accepted accounting principles used in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of income and expenses. We consider the accounting policies discussed below to be critical accounting policies. The estimates and assumptions that we use are based on historical experience and various other factors and are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations.

Our critical accounting policies involve the calculation of the allowance for credit losses ("ACL") and the measurement of the fair value of financial instruments. A detailed description of these critical accounting policies can be found in Note 2 of the Company’s consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Comparison of Financial Condition at September 30, 2023 (unaudited) and December 31, 2022

Total Assets. Total assets were $557.2 million as of September 30, 2023, an increase of $19.7 million, or 3.7%, compared to total assets of $537.4 million at December 31, 2022. The increase was due primarily to a $25.2 million increase in net loans and a $1.2 million increase in other assets which resulted from an increase in a deferred tax benefit related to the increase in our net unrealized losses within the available-for-sale securities portfolio offset by a $1.1 million decrease in cash and due from banks, a $3.5 million decrease in securities available-for-sale and a $1.5 million decrease in Federal Home Loan Bank stock.

Cash and Due From Banks. Cash and due from banks decreased $1.1 million, or 13.1%, to $7.2 million at September 30, 2023 from $8.3 million at December 31, 2022. The decrease was due primarily to a $25.2 million increase in net loans and a $29.5 million decrease in borrowings offset by $25.6 million of net proceeds from the stock offering in connection with the conversion of the former First Seacoast Bancorp, MHC and a $29.4 million increase in total deposits during the nine months ended September 30, 2023.

Available-for-Sale Securities. Available-for-sale securities decreased by $3.5 million, or 3.3%, to $102.6 million at September 30, 2023 from $106.1 million at December 31, 2022. This decrease was due primarily to a $5.9 million increase in net unrealized losses within the portfolio and $3.7 million of proceeds from principal payments offset by investment purchases totaling $6.8 million during the nine months ended September 30, 2023. Management believes that the unrealized losses within the portfolio are due to noncredit-related factors, including changes in market interest rates and other market conditions, and therefore we recorded no allowance for credit losses on available-for-sale debt securities as of September 30, 2023.

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Net Loans. Net loans increased $25.2 million, or 6.3%, to $424.1 million at September 30, 2023 from $398.9 million at December 31, 2022. During the nine months ended September 30, 2023, we originated $24.0 million of loans, net of principal collections, and purchased $1.2 million of consumer loans secured by manufactured housing properties. As of September 30, 2023 and December 31, 2022, the portfolio of purchased loans had outstanding principal balances of $30.7 million and $30.5 million, respectively, and were performing in accordance with their original repayment terms. Net deferred loan costs increased $231,000, or 9.4%, to $2.7 million at September 30, 2023 from $2.4 million at December 31, 2022 due primarily to the increase in deferred costs on consumer loans. SBA fee and interest income recognized during the three and nine months ended September 30, 2023 was $-0-, as compared to $7,000 and $233,000 during the three and nine months ended September 30, 2022, respectively. SBA fee and interest income is included in interest and fees on loans.

One- to four-family residential mortgage loans increased $13.0 million, or 5.2%, to $264.5 million at September 30, 2023 from $251.5 million at December 31, 2022. Commercial real estate mortgage loans increased $6.8 million, or 8.4%, to $87.3 million at September 30, 2023 from $80.5 million at December 31, 2022. Multi-family loans decreased $506,000, or 6.2%, to $7.7 million at September 30, 2023 from $8.2 million at December 31, 2022. Commercial and industrial loans increased $816,000, or 3.4%, to $24.9 million at September 30, 2023 from $24.1 million at December 31, 2022. Acquisition, development, and land loans increased $765,000, or 4.1%, to $19.3 million at September 30, 2023 from $18.5 million at December 31, 2022. Home equity loans and lines of credit increased $2.5 million, or 24.1%, to $12.6 million at September 30, 2023 from $10.2 million at December 31, 2022. Consumer loans increased $1.4 million, or 19.8%, to $8.6 million at September 30, 2023 from $7.2 million at December 31, 2022.

Our strategy to grow the balance sheet continues to be through originations and, to a lesser extent, purchases of one- to four-family residential mortgage loans and consumer loans secured by manufactured housing properties, while also diversifying into higher yielding commercial real estate mortgage loans and commercial and industrial loans to improve net margins and manage interest rate risk. We also continue to consider selling selected, conforming 15-year and 30-year residential fixed rate mortgage loans to the secondary market on a servicing retained basis as market conditions allow, providing us a recurring source of revenue from loan servicing income and gains on the sale of such loans.

Our ACL on loans decreased $232,000 to $3.3 million at September 30, 2023 from $3.6 million at December 31, 2022, due primarily to a $295,000 adjustment from the adoption of ASU 2016-13 and its new credit impairment standard for financial assets measured at amortized cost offset by $65,000 of provision for credit losses on loans for the nine months ended September 30, 2023 . The ASU requires financial assets measured at amortized cost, including loans, to be presented at the net amount expected to be collected, through an ACL that are expected to occur over the remaining life of the asset, rather than incurred losses. The ASU requires the measurement of all expected credit losses for loans held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, the ASU requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied at prior reporting dates are still permitted, though the inputs to those techniques have changed to reflect the full amount of expected credit losses. The Bank has selected the Weighted Average Remaining Maturity Model (“WARM” or "CECL model"), for the loss calculation of each of the Bank’s loan pools utilizing a third-party software application. The WARM uses a quarterly loss rate and future expectations of loan balances to calculate an ACL. A loss rate is applied to pool balances over time.

The effect of implementing this ASU was recorded as a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which the ASU is effective, which was January 1, 2023. The adoption of the new standard resulted in a $295,000 decrease to the ACL which was offset by a $290,000 increase in the allowance for off-balance sheet commitments that are not unconditionally cancelable. The decrease in ACL was due to a reduced emphasis on qualitative factors under the CECL model as the underlying historical loss data of the selected peer group is more robust with broader time horizons as compared to our actual historical loss data used under the incurred loss methodology. Under the CECL model, subsequent changes in the ACL are recorded through a charge to the provision for credit losses in the statement of (loss) income as the amounts expected to be collected change.

Deposits. Our deposits are generated primarily from residents within our primary market area. We offer a selection of deposit accounts, including non-interest-bearing and interest-bearing checking accounts, savings accounts, money market accounts and time deposits, for both individuals and businesses. As of September 30, 2023 and December 31, 2022, the aggregate amount of uninsured total deposit balances, which is the portion exceeding the $250,000 FDIC insurance limit, was estimated not to exceed $106.3 million, or 25.8% of total deposits, and $82.0 million, or 21.4% of total deposits, respectively.

Deposits increased $29.4 million, or 7.7%, to $411.8 million at September 30, 2023 from $382.4 million at December 31, 2022 primarily as a result of an $21.6 million increase in commercial deposits and a $7.8 million increase in retail deposits. Core deposits (defined as deposits other than time deposits) increased $6.4 million, or 2.0%, to $327.0 million at September 30, 2023 from $320.6 million at December 31, 2022. As of September 30, 2023, savings deposits increased $12.0 million, money market deposits increased $24.9 million, NOW and demand deposit accounts decreased $30.5 million and time deposits increased $23.0 million. There were $23.6 million and $18.1 million of brokered deposits included in time deposits at September 30, 2023 and December 31, 2022, respectively. Additionally, there were $20.6 million and $-0- of brokered deposits included in savings deposits at September 30, 2023 and December 31, 2022, respectively.

40

Borrowings. Total advances from Federal Home Loan Bank decreased $54.5 million, or 54.9%, to $44.9 million at September 30, 2023 from $99.4 million at December 31, 2022 due primarily to the net repayment of advances from the receipt of $25.6 million of net proceeds from the stock offering in connection with the conversion of the former First Seacoast Bancorp, MHC, a $29.4 million increase in total deposits and a $25.0 million advance from Federal Reserve Bank under the Federal Reserve's Bank Term Funding Program.

Total Stockholders’ Equity. Total stockholders’ equity increased $17.9 million, or 36.3%, to $67.3 million at September 30, 2023 from $49.3 million at December 31, 2022. This increase was due primarily to $25.6 million of net proceeds received from the conversion of the former First Seacoast Bancorp, MHC offset by the purchase of $2.2 million of common stock by the ESOP and an other comprehensive loss of $5.1 million related primarily to net changes in unrealized holding losses in the available-for-sale securities portfolio as a result of an increase in market interest rates during the nine months ended September 30, 2023.

Non-performing Assets. Non-performing assets include loans that are 90 or more days past due or on non-accrual status and real estate and other loan collateral acquired through foreclosure and repossession. Management determines that a loan is non-performing when it is probable at least a portion of the loan will not be collected in accordance with the original terms due to a deterioration in the financial condition of the borrower or the value of the underlying collateral if the loan is collateral dependent. When a loan is determined to be non-performing, the measurement of the loan in the ACL is based on present value of expected future cash flows, except that all collateral-dependent loans are measured for non-performance based on the fair value of the collateral. Non-accrual loans are loans for which collectability is questionable and, therefore, interest on such loans will no longer be recognized on an accrual basis.

We generally cease accruing interest on our loans when contractual payments of principal or interest have become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. Interest received on non-accrual loans generally is applied against principal or applied to interest on a cash basis. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for at least six consecutive months and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Non-performing loans were $-0- and $89,000 at September 30, 2023 and December 31, 2022, respectively. At December 31, 2022, non-performing loans consisted primarily of a residential mortgage loan to a deceased borrower which had an outstanding balance of $84,000. The property was sold in April 2023 and the outstanding loan balance was paid in full. At September 30, 2023 and December 31, 2022, we had no foreclosed assets.

Comparison of Operating Results for the Three Months Ended September 30, 2023 and September 30, 2022

Net Income. Net loss was $911,000 for the three months ended September 30, 2023, compared to net income of $468,000 for the three months ended September 30, 2022, a decrease of $1.4 million. The decrease was due primarily to a decrease in net interest and dividend income after provision (release) for credit losses of $1.4 million, an increase in non-interest expenses of $391,000 and a decrease in non-interest income of $51,000 offset by a decrease in income tax expense of $466,000 during the three months ended September 30, 2023 compared to the three months ended September 30, 2022.

Interest and Dividend Income. Total interest and dividend income increased $946,000, or 22.4%, to $5.2 million for the three months ended September 30, 2023 compared to $4.2 million for the three months ended September 30, 2022. This increase was due to a $208,000 increase in interest and dividend income on investments and a $738,000 increase in interest and fees on loans. Interest and fees on loans for the three months ended September 30, 2023 and 2022 included $-0- and $7,000 of SBA fee and interest income earned on PPP loans, respectively.

Average interest-earning assets increased $32.1 million, to $536.2 million for the three months ended September 30, 2023 from $504.1 million for the three months ended September 30, 2022. The weighted average annualized yield on interest earning-assets increased to 3.85% for the three months ended September 30, 2023 from 3.35% for the three months ended September 30, 2022 primarily due to an increase in market interest rates. The weighted average annualized yield for the loan portfolio increased to 4.09% for the three months ended September 30, 2023 from 3.66% for the three months ended September 30, 2022 due primarily to an increase in market interest rates. The weighted average annualized yield for all other interest-earning assets increased to 3.00% for the three months ended September 30, 2023 from 2.31% for the three months ended September 30, 2022 due primarily to an increase in market interest rates.

Interest Expense. Total interest expense increased $2.2 million to $2.6 million for the three months ended September 30, 2023 from $427,000 for the three months ended September 30, 2022. Interest expense on deposits increased $1.5 million to $1.7 million for the three months ended September 30, 2023 from $151,000 for the three months ended September 30, 2022. The average balance of interest-bearing deposits increased $28.9 million, or 9.7%, to $328.5 million for the three months ended September 30, 2023 from $299.6 million for the three months ended September 30, 2022 primarily as a result of an increase in the average balance of money market, savings and time deposits offset by a decrease in the average balances of NOW and demand deposits. The weighted average annualized rate of interest-bearing deposits increased to 2.03% for the three months ended September 30, 2023 from 0.20% for the

41

three months ended September 30, 2022 primarily as a result of an increase in market interest rates and to respond to deposit pricing by competitors.

Interest expense on borrowings increased $652,000 to $928,000 for the three months ended September 30, 2023 from $276,000 for the three months ended September 30, 2022 primarily due to an increase in the average balance of borrowings and an increase in market interest rates. The average balance of borrowings increased $6.1 million, or 8.5%, to $78.2 million for the three months ended September 30, 2023 from $72.1 million for the three months ended September 30, 2022. The weighted average annualized rate of borrowings increased to 4.75% for the three months ended September 30, 2023 from 1.53% for the three months ended September 30, 2022 due to an increase in market interest rates.

Net Interest and Dividend Income. Net interest and dividend income decreased $1.2 million, or 32.3%, to $2.6 million for the three months ended September 30, 2023 from $3.8 million for the three months ended September 30, 2022. This decrease was due to an increase of $34.9 million, or 9.4%, in the average balance of interest-bearing liabilities, consisting primarily of an increase in the average balance of borrowings and time deposits, during the three months ended September 30, 2023 offset by a $32.1 million, or 6.4%, increase in the average balance of interest-earning assets, consisting primarily of increases in the average balances of loans and non-taxable debt securities. Annualized net interest margin decreased to 1.92% for the three months ended September 30, 2023 from 3.01% for the three months ended September 30, 2022 due primarily to an increase in the average rate of borrowings and interest-bearing deposits offset by an increase in the average yield on interest-earning assets.

Provision for Credit Losses. Based on management’s analysis of the ACL, a $120,000 provision for credit losses expense was recorded for the three months ended September 30, 2023, compared to a $60,000 release for credit losses for the three months ended September 30, 2022. The provision for credit losses expense for the three months ended September 30, 2023 consisted of a $30,000 provision for credit losses on loans and a $90,000 provision for credit losses on off-balance sheet credit exposures.

Non-Interest Income. Non-interest income decreased $51,000, or 14.0%, to $314,000 for the three months ended September 30, 2023 compared to $365,000 for the three months ended September 30, 2022. The decrease in non-interest income during the three months ended September 30, 2023 was due primarily to a $34,000 decrease in customer service fees and an $18,000 decrease in loan servicing fee income.

Non-Interest Expense. Non-interest expense increased $391,000, or 10.5%, to $4.1 million for the three months ended September 30, 2023 from $3.7 million for the three months ended September 30, 2022. The increase was primarily due to a $258,000, or 11.6%, increase in salaries and employee benefits, a $27,000, or 77.1%, increase in deposit insurance fees, a $75,000, or 22.8%, increase in data processing, a $37,000, or 27.0%, increase in marketing and a $26,000, or 14.5%, increase in occupancy expense offset by a $69,000, or 26.0%, decrease in professional fees and assessments. The increase in salaries and employee benefits during the three months ended September 30, 2023, was due to headcount additions and normal salary increases.

Income Taxes. Income tax expense decreased $466,000 to a benefit of $427,000 for the three months ended September 30, 2023 from an expense of $39,000 for the three months ended September 30, 2022. The effective tax rate was (31.9)% and 7.7% for the three months ended September 30, 2023 and 2022, respectively. The decrease in income tax expense and the effective tax rate for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022 was due primarily to a $1.8 million decrease in income before income tax (benefit) expense for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022.

42

Average Balance Sheets

The following table sets forth average balance sheets, average yields and costs and certain other information at and for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans are included in the computation of average balances only. The yields set forth below include the effect of net deferred fee (expense) income, discounts and premiums that are amortized or accreted to interest income or interest expense. Average loan balances exclude loans held for sale, if applicable. The following table includes no out-of-period items or adjustments.

	For the Three Months Ended September 30,
	2023								2022
	Average Outstanding  Balance			Interest		Average Yield/Rate			Average Outstanding  Balance			Interest		Average Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans (4)	$	418,744		$	4,281		4.09	%	$	387,604		$	3,543		3.66	%
Taxable debt securities		49,828			345		2.77	%		55,966			271		1.94	%
Non-taxable debt securities		59,743			443		2.97	%		50,726			342		2.70	%
Interest-bearing deposits with other banks		5,164			40		3.10	%		6,802			24		1.41	%
Federal Home Loan Bank stock		2,701			54		8.00	%		2,982			37		4.96	%
Total interest-earning assets		536,180			5,163		3.85	%		504,080			4,217		3.35	%
Non-interest-earning assets		18,833								16,539
Total assets	$	555,013							$	520,619
Interest-bearing liabilities:
NOW and demand deposits	$	99,442		$	120		0.48	%	$	116,690		$	43		0.15	%
Money market deposits		78,327			571		2.92	%		65,596			31		0.19	%
Savings accounts		68,500			320		1.87	%		63,526			8		0.05	%
Time deposits		82,240			655		3.19	%		53,760			69		0.51	%
Total interest-bearing deposits		328,509			1,666		2.03	%		299,572			151		0.20	%
Borrowings		78,191			928		4.75	%		72,079			276		1.53	%
Other		1,530			2		0.52	%		1,642			—		—
Total interest-bearing liabilities		408,230			2,596		2.54	%		373,293			427		0.46	%
Non-interest-bearing deposits		69,813								90,645
Other noninterest-bearing liabilities		4,526								4,029
Total liabilities		482,569								467,967
Total stockholders' equity		72,444								52,652
Total liabilities and stockholders' equity	$	555,013							$	520,619
Net interest income				$	2,567							$	3,790
Net interest rate spread (1)							1.31	%							2.89	%
Net interest-earning assets (2)	$	127,950							$	130,787
Net interest margin (3)							1.92	%							3.01	%
Average interest-earning assets to interest-bearing liabilities		131.34	%							135.04	%

(1)Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

(2)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(3)Net interest margin represents net interest income divided by average total interest-earning assets.

(4)Net deferred fee expense included in loan interest totaled $103,000 and $118,000 for the three months ended September 30, 2023 and 2022, respectively.

43

Rate/Volume Analysis

The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume.

	Three Months Ended September 30, 2023 vs. 2022
	Increase (Decrease) Due to Change in
	Volume			Rate			Total
(Dollars in thousands)
Interest-earning assets:
Loans	$	298		$	440		$	738
Taxable debt securities		(32	)		106			74
Non-taxable debt securities		65			36			101
Interest-bearing deposits with other banks		(7	)		23			16
Federal Home Loan Bank stock		(4	)		21			17
Total interest-earning assets		320			626			946
Interest-bearing liabilities:
NOW and demand deposits		(7	)		84			77
Money market deposits		7			533			540
Savings accounts		1			311			312
Time deposits		54			532			586
Total interest-bearing deposits		55			1,460			1,515
Borrowings		25			627			652
Other		—			2			2
Total interest-bearing liabilities		80			2,089			2,169
Change in net interest income	$	240		$	(1,463	)	$	(1,223	)

Comparison of Operating Results for the Nine Months Ended September 30, 2023 and September 30, 2022

Net Income. Net loss was $987,000 for the nine months ended September 30, 2023, compared to net income of $1.0 million for the nine months ended September 30, 2022, a decrease of $2.0 million, or 194.9%. The decrease was due primarily to a decrease in net interest and dividend income after provision (release) for credit losses of $2.7 million and an increase in non-interest expenses of $727,000 offset by an increase in non-interest income of $616,000 and a decrease in income tax expense of $830,000 during the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022.

Interest and Dividend Income. Total interest and dividend income increased $2.7 million, or 21.9%, to $14.8 million for the nine months ended September 30, 2023 compared to $12.1 million for the nine months ended September 30, 2022. This increase was due to a $865,000 increase in interest and dividend income on investments and a $1.8 million increase in interest and fees on loans. Interest and fees on loans for the nine months ended September 30, 2023 and 2022 included $-0- and $233,000 of SBA fee and interest income earned on PPP loans, respectively.

Average interest-earning assets increased $36.8 million, to $528.5 million for the nine months ended September 30, 2023 from $491.7 million for the nine months ended September 30, 2022. The weighted average annualized yield on interest earning-assets increased to 3.73% for the nine months ended September 30, 2023 from 3.29% for the nine months ended September 30, 2022 primarily due to an increase in market interest rates. The weighted average annualized yield for the loan portfolio increased to 3.96% for the nine months ended September 30, 2023 from 3.64% for the nine months ended September 30, 2022 due primarily to an increase in market interest rates. The weighted average annualized yield for all other interest-earning assets increased to 2.92% for the nine months ended September 30, 2023 from 2.07% for the nine months ended September 30, 2022 due primarily to an increase in market interest rates.

Interest Expense. Total interest expense increased $5.2 million to $6.0 million for the nine months ended September 30, 2023 from $818,000 for the nine months ended September 30, 2022. Interest expense on deposits increased $3.1 million to $3.5 million for the nine months ended September 30, 2023 from $400,000 for the nine months ended September 30, 2022. The average balance of interest-bearing deposits increased $15.3 million, or 5.2%, to $312.0 million for the nine months ended September 30, 2023 from $296.7 million for the nine months ended September 30, 2022 primarily as a result of an increase in the average balance of money market, savings and time deposits offset by a decrease in the average balances of NOW and demand deposits. The weighted average annualized rate of interest-bearing deposits increased to 1.46% for the nine months ended September 30, 2023 from 0.18% for the nine months ended September 30, 2022 primarily as a result of an increase in market interest rates and to respond to deposit pricing by competitors.

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Interest expense on borrowings increased $2.2 million to $2.6 million for the nine months ended September 30, 2023 from $418,000 for the nine months ended September 30, 2022 primarily due to an increase in the average balance of borrowings and an increase in market interest rates. The average balance of borrowings increased $22.6 million, or 40.9%, to $78.0 million for the nine months ended September 30, 2023 from $55.4 million for the nine months ended September 30, 2022. The weighted average annualized rate of borrowings increased to 4.43% for the nine months ended September 30, 2023 from 1.01% for the nine months ended September 30, 2022 due to an increase in market interest rates.

Net Interest and Dividend Income. Net interest and dividend income decreased $2.6 million, or 22.8%,to $8.7 million for the nine months ended September 30, 2023 from $11.3 million for the nine months ended September 30, 2022. This decrease was due to an increase of $38.0 million, or 10.8%, in the average balance of interest-bearing liabilities, consisting primarily of an increase in the average balance of borrowings and time deposits, during the nine months ended September 30, 2023 offset by a $36.8 million, or 7.5%, increase in the average balance of interest-earning assets, consisting primarily of increases in the average balances of loans and non-taxable debt securities. Annualized net interest margin decreased to 2.21% for the nine months ended September 30, 2023 from 3.07% for the nine months ended September 30, 2022 due primarily to an increase in the average rate of borrowings and interest-bearing deposits offset by an increase in the average yield on interest-earning assets.

Provision for Credit Losses. Based on management’s analysis of the ACL, a $170,000 provision for credit losses expense was recorded for the nine months ended September 30, 2023, compared to a $-0- provision for credit losses expense for the nine months ended September 30, 2022. The provision for credit losses expense for the nine months ended September 30, 2023 consisted of a $65,000 provision for credit losses on loans and a $105,000 provision for credit losses on off-balance sheet credit exposures.

Non-Interest Income. Non-interest income increased $616,000, or 51.1%, to $1.8 million for the nine months ended September 30, 2023 compared to $1.2 million for the nine months ended September 30, 2022. The increase in non-interest income during the nine months ended September 30, 2023 was due primarily to an $849,000 gain on termination of interest rate swaps offset by a $52,000 decrease in securities gains, net, a $91,000 decrease in customer service fees, a $32,000 decrease in investment service fees and a $69,000 decrease in loan servicing fee income.

Non-Interest Expense. Non-interest expense increased $727,000, or 6.4%, to $12.1 million for the nine months ended September 30, 2023 from $11.3 million for the nine months ended September 30, 2022. The increase was primarily due to a $423,000, or 6.1%, increase in salaries and employee benefits, a $85,000, or 78.0%, increase in deposit insurance fees, a $139,000, or 13.2%, increase in data processing, a $92,000, or 32.2%, increase in marketing, and a $30,000, or 5.4%, increase in occupancy expense, offset by a $54,000, or 6.9%, decrease in professional fees and assessments. The increase in salaries and employee benefits during the nine months ended September 30, 2023, was due primarily to normal salary increases.

Income Taxes. Income tax expense decreased $830,000 to a benefit of $667,000 for the nine months ended September 30, 2023 from an expense of $163,000 for the nine months ended September 30, 2022. The effective tax rate was (40.3)% and 13.5% for the nine months ended September 30, 2023 and 2022, respectively. The decrease in income tax expense and the effective tax rate for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022 was due primarily to a $2.9 million decrease in income before income tax (benefit) expense and an increase in the amount of non-taxable income as a percentage of income before income tax (benefit) expense for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022.

45

Average Balance Sheets

The following table sets forth average balance sheets, average yields and costs and certain other information at and for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans are included in the computation of average balances only. The yields set forth below include the effect of net deferred fee (expense) income, discounts and premiums that are amortized or accreted to interest income or interest expense. Average loan balances exclude loans held for sale, if applicable. The following table includes no out-of-period items or adjustments.

	For the Nine Months Ended September 30,
	2023								2022
	Average Outstanding  Balance			Interest		Average Yield/Rate			Average Outstanding  Balance			Interest		Average Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans (4)	$	410,902		$	12,215		3.96	%	$	381,466		$	10,427		3.64	%
Taxable debt securities		49,684			928		2.49	%		52,915			706		1.78	%
Non-taxable debt securities		58,677			1,305		2.97	%		48,298			900		2.48	%
Interest-bearing deposits with other banks		6,330			159		3.35	%		6,535			46		0.93	%
Federal Home Loan Bank stock		2,934			185		8.41	%		2,483			60		3.22	%
Total interest-earning assets		528,527			14,792		3.73	%		491,697			12,139		3.29	%
Non-interest-earning assets		17,935								14,946
Total assets	$	546,462							$	506,643
Interest-bearing liabilities:				`
NOW and demand deposits	$	102,994		$	268		0.35	%	$	111,978		$	75		0.09	%
Money market deposits		69,302			1,122		2.16	%		67,407			86		0.17	%
Savings deposits		65,774			674		1.37	%		61,510			21		0.05	%
Time deposits		73,973			1,354		2.44	%		55,813			218		0.52	%
Total interest-bearing deposits		312,043			3,418		1.46	%		296,708			400		0.18	%
Borrowings		78,043			2,593		4.43	%		55,404			418		1.01	%
Other		1,798			36		2.67	%		1,747			—		—
Total interest-bearing liabilities		391,884			6,047		2.06	%		353,859			818		0.31	%
Non-interest-bearing deposits		78,925								93,617
Other non-interest-bearing liabilities		4,073								3,807
Total liabilities		474,882								451,283
Total stockholders' equity		71,580								55,360
Total liabilities and stockholders' equity	$	546,462							$	506,643
Net interest income				$	8,745							$	11,321
Net interest rate spread (1)							1.67	%							2.98	%
Net interest-earning assets (2)	$	136,643							$	137,838
Net interest margin (3)							2.21	%							3.07	%
Average interest-earning assets to interest-bearing liabilities		134.87	%							138.95	%

(1)Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

(2)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(3)Net interest margin represents net interest income divided by average total interest-earning assets.

(4)Net deferred fee expense included in loan interest totaled $276,000 and $71,000 for the nine months ended September 30, 2023 and 2022, respectively.

46

Rate/Volume Analysis

The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume.

	Nine Months Ended September 30, 2023 vs. 2022
	Increase (Decrease) Due to						Total Increase
	Volume			Rate			(Decrease)
(In thousands)
Interest-earning assets:
Loans	$	838		$	950		$	1,788
Taxable debt securities		(45	)		267			222
Non-taxable debt securities		212			193			405
Interest-bearing deposits with other banks		(1	)		114			113
Federal Home Loan Bank stock		13			112			125
Total interest-earning assets		1,017			1,636			2,653
Interest-bearing liabilities:
NOW and demand deposits		(7	)		200			193
Money market deposits		2			1,034			1,036
Savings deposits		2			651			653
Time deposits		92			1,044			1,136
Total interest-bearing deposits		89			2,929			3,018
Borrowings		234			1,941			2,175
Other		—			36			36
Total interest-bearing liabilities		323			4,906			5,229
Change in net interest income	$	694		$	(3,270	)	$	(2,576	)

Liquidity and Capital Resources

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. As of September 30, 2023 and December 31, 2022, the aggregate amount of uninsured total deposit balances, which is the portion exceeding the $250,000 FDIC insurance limit, had an estimated value not exceeding $106.3 million, or 25.8% of total deposits, and $82.0 million, or 21.4% of total deposits, respectively. Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from the sale of loans and proceeds from sales and maturities of securities. We also rely on borrowings from the FHLB as supplemental sources of funds. At September 30, 2023 and December 31, 2022, we had $44.9 million and $99.4 million outstanding in advances from the FHLB, respectively, and the ability to borrow an additional $99.2 million and $36.5 million, respectively. Additionally, at September 30, 2023 and December 31, 2022, we had an overnight line of credit with the FHLB for up to $3.0 million and unsecured Fed Funds borrowing lines of credit with two correspondent banks for up to $5.0 million. At September 30, 2023 and December 31, 2022, there were no outstanding balances under any of these additional credit facilities.

The Bank has established two secured credit facilities with the FRB – Bank Term Funding Program (“BTFP”) and Borrower-In-Custody of Collateral Program (“BIC”). At September 30, 2023, the Bank’s remaining borrowing capacity is $7.3 million under the BTFP and is based upon eligible collateral, principally government-sponsored enterprise obligations, mortgage-backed securities and collateralized mortgage obligations issued by various U.S. Government agencies, owned as of March 12, 2023. The interest rate for term advances under the BTFP will be the one-year overnight index swap rate plus 10 basis points and fixed for the term of the advance – up to one year - on the day the advance is made. Advances can be requested under the BTFP until at least March 11, 2024. At September 30, 2023, the Bank’s borrowing capacity is $55.5 million under the BIC and is based upon eligible collateral - principally general obligation municipal bonds. The entire balance of this credit facility was available at September 30, 2023.

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions and competition. Our most liquid assets are cash and cash equivalents and available-for-sale investment securities. The levels of these assets are dependent on our operating, financing, lending and investing activities during any given period.

47

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities and financing activities. Net cash (used) provided by operating activities was $(417,000) and $1.8 million for the nine months ended September 30, 2023 and 2022, respectively. Net cash used by investing activities, which consists primarily of disbursements for loan originations and purchases, and the purchase of securities available-for-sale, offset by proceeds from the unwinding of interest rate swaps, principal collections on loans and proceeds from the sale, maturity and principal payments on securities available-for-sale, was $25.5 million and $49.4 million for the nine months ended September 30, 2023 and 2022, respectively. Net cash provided by financing activities, consisting primarily of proceeds from the sale of common stock, activity in deposit accounts and FHLB and FRB advances, was $24.8 million and $47.7 million for the nine months ended September 30, 2023 and 2022, respectively.

We are committed to maintaining a strong liquidity position. We monitor our liquidity position daily. We anticipate that we will have sufficient funds to meet our current funding commitments. We have no material commitments for capital expenditures as of September 30, 2023. Our current strategy is to increase core deposits and utilize FHLB and FRB advances, as well as brokered deposits, to fund loan growth.

First Seacoast Bancorp, Inc. is a separate legal entity from First Seacoast Bank and must provide for its own liquidity to pay its operating expenses and other financial obligations and to fund repurchases of shares of common stock. The Company’s primary source of income is dividends received from the Bank. The amount of dividends that the Bank may declare and pay to the Company is governed by applicable bank regulations. At September 30, 2023, the Company (on an unconsolidated basis) had liquid assets of $20.0 million.

At September 30, 2023, First Seacoast Bank exceeded all its regulatory capital requirements. See Note 12 of the unaudited consolidated financial statements appearing under Item 1 of this quarterly report. Management is not aware of any conditions or events that would change First Seacoast Bank’s categorization as well-capitalized.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

General. Most of our assets and liabilities are monetary in nature. Consequently, our most significant form of market risk is interest rate risk. Our assets, consisting primarily of loans, have longer maturities than our liabilities, consisting primarily of deposits. As a result, a principal part of our business strategy is to manage our exposure to changes in market interest rates. Accordingly, the board of directors established a management-level Asset/Liability Management Committee (the “ALCO”), which takes responsibility for overseeing the asset/liability management process and related procedures. The ALCO meets on at least a quarterly basis and reviews asset/liability strategies, liquidity positions, alternative funding sources, interest rate risk measurement reports, capital levels and economic trends at both national and local levels. Our interest rate risk position is also monitored quarterly by the board of directors.

We manage our interest rate risk in an effort to minimize the exposure of our earnings and capital to changes in market interest rates. We have implemented the following strategies to manage our interest rate risk: originating loans with adjustable interest rates; promoting core deposit products; selling a portion of fixed-rate one- to four-family residential real estate loans; maintaining investments as available-for-sale; diversifying our loan portfolio; utilizing interest rate swaps; and strengthening our capital position. By following these strategies, we believe that we are better positioned to react to changes in market interest rates.

Net Portfolio Value Simulation. We analyze our sensitivity to changes in interest rates through a net portfolio value of equity (“NPV”) model. NPV represents the present value of the expected cash flows from our assets less the present value of the expected cash flows arising from our liabilities adjusted for the value of off-balance sheet contracts. The NPV ratio represents the dollar amount of our NPV divided by the present value of our total assets for a given interest rate scenario. NPV attempts to quantify our economic value using a discounted cash flow methodology, while the NPV ratio reflects that value as a form of capital ratio. We estimate what our NPV would be at a specific date. We then calculate what the NPV would be at the same date throughout a series of interest rate scenarios representing immediate and permanent, parallel shifts in the yield curve. We currently calculate NPV under the assumptions that interest rates increase 100, 200, 300 and 400 basis points from current market rates and that interest rates decrease 100, 200, 300 and 400 basis points from current market rates.

48

The following table presents the estimated changes in our net portfolio value that would result from changes in market interest rates as of September 30, 2023 and December 31, 2022:

As of September 30, 2023:

	Net Portfolio Value ("NPV")								NPV as Percent of Portfolio Value of Assets
Basis Point ("bp") Change in Interest Rates	Dollar Amount		Dollar Change			Percent Change			NPV Ratio			Change
	(Dollars in thousands)
400 bp	$	46,543	$	(33,881	)		(42.1	)%		10.7	%	$	(506	)
300 bp		54,344		(26,080	)		(32.4	)		12.1			(373	)
200 bp		62,570		(17,854	)		(22.2	)		13.3			(245	)
100 bp		72,087		(8,337	)		(10.4	)		14.7			(105	)
0		80,424		—			—			15.8			—
(100) bp		88,231		7,807			9.7			16.6			85
(200) bp		94,262		13,838			17.2			17.1			133
(300) bp		97,630		17,206			21.4			17.1			133
(400) bp		98,183		17,759			22.1			16.7			88

As of December 31, 2022:

	Net Portfolio Value ("NPV")								NPV as Percent of Portfolio Value of Assets
Basis Point ("bp") Change in Interest Rates	Dollar Amount		Dollar Change			Percent Change			NPV Ratio			Change
	(Dollars in thousands)
400 bp	$	64,978	$	(31,915	)		(32.9	)%		15.3	%	$	(401	)
300 bp		72,904		(23,989	)		(24.8	)		16.4			(284	)
200 bp		80,715		(16,178	)		(16.7	)		17.5			(180	)
100 bp		89,144		(7,749	)		(8.0	)		18.5			(78	)
0		96,893		—			—			19.3			—
(100) bp		102,856		5,963			6.2			19.6			37
(200) bp		106,776		9,883			10.2			19.6			35
(300) bp		107,095		10,202			10.5			19.0			(29	)
(400) bp		99,984		3,091			3.2			17.3			(199	)

Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements. Modeling changes require making certain assumptions that may or may not reflect the way actual yields and costs respond to changes in market interest rates. The above table assumes that the composition of our interest-sensitive assets and liabilities existing at the date indicated remains constant uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the table provides an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our NPV and will differ from actual results.

49

Economic Value of Equity. Like most financial institutions, our profitability depends to a large extent upon our net interest income, which is the difference between our interest income on interest-earning assets, such as loans and securities, and our interest expense on interest-bearing liabilities adjusted for the value of off-balance sheet contracts, such as deposits and borrowed funds. Accordingly, our results of operations depend largely on movements in market interest rates and our ability to manage our interest-rate sensitive assets and liabilities in response to these movements. Factors such as inflation, and instability in financial markets, among other factors beyond our control, may affect interest rates.

In a rising interest rate environment, we would expect that the rates on our deposits and borrowings would reprice upwards faster than the rates on our long-term loans and investments, which would be expected to compress our interest rate spread and have a negative effect on our profitability. Furthermore, increases in interest rates may adversely affect the ability of our borrowers to make loan repayments on adjustable-rate loans, as the interest owed on such loans would increase as interest rates increase. Conversely, decreases in interest rates can result in increased prepayments of loans and mortgage-related securities, as borrowers refinance to reduce their borrowing costs. Under these circumstances, we are subject to reinvestment risk as we may have to redeploy such loan or securities proceeds into lower-yielding assets, which might also negatively impact our income. If interest rates rise, we expect that our economic value of equity would decrease. Economic value of equity represents the present value of the expected cash flows from our assets less the present value of the expected cash flows arising from our liabilities. The Company’s economic value of equity analysis as of September 30, 2023 estimated that, in the event of an instantaneous 200 basis point increase in interest rates, the Company would experience a 22.2% decrease in economic value of equity which was above the Board approved limit of 20.0%. At the same date, our analysis estimated that, in the event of an instantaneous 200 basis point decrease in interest rates, the Company would experience a 17.2% increase in the economic value of equity which was within Board approved limits.

Any substantial, unexpected, prolonged change in market interest rates could have a material adverse effect on our financial condition, liquidity and results of operations. Changes in the level of interest rates also may negatively affect our ability to originate real estate loans, the value of our assets and our ability to realize gains from the sale of our assets, all of which ultimately affect our earnings. Also, our interest rate risk modeling techniques and assumptions likely may not fully predict or capture the impact of actual interest rate changes on our balance sheet or projected operating results.

50

Item 4. Controls and Procedures

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures. As of September 30, 2023, the Company conducted an evaluation, under the supervision and with the participation of the Company's management, including its Chief Executive Officer and its Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934). Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2023 for recording, processing, summarizing and reporting the information the Company is required to disclose in the reports it files under the Securities Exchange Act of 1934, within the time periods specified in SEC rules and forms.

The effectiveness of a system of disclosure controls and procedures is subject to various inherent limitations, including cost limitations, judgments used in decision making, assumptions about the likelihood of future events, the soundness of our systems, the possibility of human error and the risk of fraud. Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions and the risk that the degree of compliance with policies or procedures may deteriorate over time. Due to such inherent limitations, there can be no assurance that any system of disclosure controls and procedures will be successful in preventing all errors or fraud or in making all material information known in a timely manner to the appropriate levels of management.

Changes in Internal Controls over Financial Reporting. During the quarter ended September 30, 2023, there were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

51

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

Periodically, we are involved in claims and lawsuits, such as claims to enforce liens, condemnation proceedings on properties in which we hold security interests, claims involving the making and servicing of real property loans and other issues incident to our business. At September 30, 2023, we were not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows.

Item 1A. Risk Factors

Not applicable, as First Seacoast Bancorp, Inc. is a “smaller reporting company.”

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

There were no stock repurchases or sales of unregistered securities during the quarter ended September 30, 2023.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

52

Item 6. Exhibits

Exhibit Number	Description
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials for the quarter ended September 30, 2023, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of (Loss) Income, (iii) Consolidated Statements of Comprehensive Loss, (iv) Consolidated Statements of Changes in Stockholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements
104	Cover Page Interactive Data Files (embedded within Inline XBRL document)

53

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	FIRST SEACOAST BANCORP, INC.
Date: November 9, 2023	/s/ James R. Brannen
	James R. Brannen
	President and Chief Executive Officer
Date: November 9, 2023	/s/ Richard M. Donovan
	Richard M. Donovan
	Senior Vice President and Chief Financial Officer

54

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, James R. Brannen, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of First Seacoast Bancorp, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 9, 2023	/s/ James R. Brannen
	James R. Brannen
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Richard M. Donovan, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of First Seacoast Bancorp, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 9, 2023	/s/ Richard M. Donovan
	Richard M. Donovan
	Senior Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, James R. Brannen, President and Chief Executive Officer of First Seacoast Bancorp, Inc. (the “Company”), hereby certify in my capacity as an executive officer of the Company that I have reviewed the Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 (the “Report”) and that, to the best of my knowledge:

1.The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 9, 2023	/s/ James R. Brannen
	James R. Brannen
	President and Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification of Chief Financial Officer

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Richard M. Donovan, Senior Vice President and Chief Financial Officer of First Seacoast Bancorp, Inc. (the “Company”), hereby certify in my capacity as an executive officer of the Company that I have reviewed the Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 (the “Report”) and that, to the best of my knowledge:

1.The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 9, 2023	/s/ Richard M. Donovan
	Richard M. Donovan
	Senior Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2023	Nov. 03, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Trading Symbol	FSEA
Title of 12(b) Security	Common stock, $0.01 par value per share
Security Exchange Name	NASDAQ
Entity Registrant Name	First Seacoast Bancorp, Inc.
Entity Central Index Key	0001943802
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		5,077,616
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	MD
Entity File Number	001-41597
Entity Address, Address Line One	633 Central Avenue
Entity Address, City or Town	Dover
Entity Address, State or Province	NH
City Area Code	603
Local Phone Number	742-4680
Entity Address, Postal Zip Code	03820
Entity Tax Identification Number	92-0334805

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Sep. 30, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks		$ 7,168	$ 8,250
Interest bearing time deposits with other banks			747
Securities available-for-sale, at fair value		102,552	106,100
Federal Home Loan Bank stock		1,972	3,502
Total Loans		427,485	402,505
Allowance for credit losses on loans		(3,349)	(3,581)
Net loans		424,136	398,924
Land, building and equipment, net		4,160	4,181
Bank-owned life insurance		4,642	4,561
Accrued interest receivable		2,130	1,988
Other assets		10,395	9,171
Total assets		557,155	537,424
Deposits:
Non-interest bearing deposits		72,956	92,757
Interest bearing deposits		338,829	289,606
Total deposits		411,785	382,363
Advances from Federal Home Loan Bank		44,877	99,397
Advances from Federal Reserve Bank		25,000
Mortgagors’ tax escrow		2,381	938
Deferred compensation liability		1,990	1,830
Other liabilities		3,860	3,559
Total liabilities		489,893	488,087
Stockholders' Equity:
Preferred Stock, $.01 par value, 10,000,000 shares authorized, none issued
Common Stock, $.01 par value, 90,000,000 shares authorized; 5,192,515 issued and 5,077,616 outstanding at September 30, 2023; and 5,183,439 issued and 5,068,540 outstanding at December 31, 2022		52	62
Additional paid-in capital		52,592	26,768
Retained earnings		35,266	36,248
Accumulated other comprehensive loss		(14,783)	(9,727)
Treasury stock, at cost: 114,899 shares outstanding as of September 30, 2023 and December 31, 2022	[1]	(1,377)	(1,377)
Unearned stock compensation		(4,488)	(2,637)
Total stockholders' equity		67,262	49,337	[2]
Total liabilities and stockholders' equity		$ 557,155	$ 537,424

[1] Adjusted for conversion of First Seacoast Bancorp, Inc.

[2] Adjusted for conversion of First Seacoast Bancorp, Inc.

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common stock par value per share	$ 0.01	$ 0.01
Common stock, number of shares authorized	90,000,000	90,000,000
Common stock, number of shares issued	5,192,515	5,183,439
Common stock, number of shares outstanding	5,077,616	5,068,540
Treasury Stock Shares Outstanding	114,899	114,899

XML

CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest and dividend income:
Interest and fees on loans		$ 4,281,000	$ 3,543,000	$ 12,215,000	$ 10,427,000
Interest on debt securities:
Taxable		385,000	295,000	1,087,000	752,000
Non-taxable		443,000	342,000	1,305,000	900,000
Total interest on debt securities		828,000	637,000	2,392,000	1,652,000
Dividends		54,000	37,000	185,000	60,000
Total interest and dividend income		5,163,000	4,217,000	14,792,000	12,139,000
Interest expense:
Interest on deposits		1,668,000	151,000	3,454,000	400,000
Interest on borrowings		928,000	276,000	2,593,000	418,000
Total interest expense		2,596,000	427,000	6,047,000	818,000
Net interest and dividend income		2,567,000	3,790,000	8,745,000	11,321,000
Provision (release) for credit losses		120,000	(60,000)	170,000
Net interest and dividend income after provision (release) for credit losses		2,447,000	3,850,000	8,575,000	11,321,000
Non-interest income:
Customer service fees		177,000	211,000	582,000	673,000
Gain on sale of loans					2,000
Securities gains, net					52,000
Gain on termination of interest rate swaps				849,000
Income from bank-owned life insurance		41,000	40,000	81,000	80,000
Loan servicing income		9,000	27,000	47,000	116,000
Investment services fees		65,000	76,000	220,000	252,000
Other income		22,000	11,000	42,000	30,000
Total non-interest income		314,000	365,000	1,821,000	1,205,000
Non-interest expense:
Salaries and employee benefits		2,486,000	2,228,000	7,328,000	6,905,000
Director compensation		46,000	86,000	234,000	223,000
Occupancy expense		205,000	179,000	584,000	554,000
Equipment expense		115,000	121,000	342,000	375,000
Marketing		174,000	137,000	378,000	286,000
Data processing		404,000	329,000	1,192,000	1,053,000
Deposit insurance fees		62,000	35,000	194,000	109,000
Professional fees and assessments		196,000	265,000	726,000	780,000
Debit card fees		58,000	50,000	157,000	136,000
Employee travel and education expenses		42,000	87,000	136,000	153,000
Other expense		311,000	191,000	779,000	749,000
Total non-interest expense		4,099,000	3,708,000	12,050,000	11,323,000
(Loss) income before income tax (benefit) expense		(1,338,000)	507,000	(1,654,000)	1,203,000
Income tax (benefit) expense		(427,000)	39,000	(667,000)	163,000
Net (loss) income		$ (911,000)	$ 468,000	$ (987,000)	$ 1,040,000
(Loss) earnings per share:
Basic	[1]	$ (0.20)	$ 0.10	$ (0.21)	$ 0.22
Diluted	[1]	$ (0.20)	$ 0.10	$ (0.21)	$ 0.22
Weighted average shares:
Basic	[1]	4,638,225	4,808,243	4,648,651	4,818,423
Diluted	[1],[2]	4,638,225	4,832,837	4,648,651	4,835,823

[1] Adjusted for conversion of First Seacoast Bancorp, Inc.

[2] Not adjusted for potentially dilutive shares for periods where a net loss was recognized. The three and nine months ended September 30, 2023 excludes 32,393 stock-based awards that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the periods presented.

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CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) (Parenthetical) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Stock-based Awards [Member]
Antidilutive shares that are not included in computation of diluted earnings per share	32,393	32,393

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (911)	$ 468	$ (987)	$ 1,040
Other comprehensive loss, net of income taxes:
Unrealized holding losses on securities available-for-sale arising during the period, net of income taxes of $(1,873), $(1,914), $(1,788) and $(5,449), respectively	(5,023)	(5,153)	(4,876)	(14,671)
Reclassification adjustment for securities gains, net and netamortization of bond premiums included in net (loss) income, net of income taxes of $60, $71, $191 and $189, respectively	162	193	521	510
Total unrealized loss on securities available-for-sale	(4,861)	(4,960)	(4,355)	(14,161)
Change in interest rate swaps, net of income taxes of $-0-, $93, $(30) and $238, respectively		250	(82)	642
Reclassification adjustment for net interest expense on swaps included in net (loss) income, net of income taxes of $-0-, $(11), $(230) and $(9), respectively		(30)	(619)	(25)
Total change in interest rate swaps		220	(701)	617
Other comprehensive loss	(4,861)	(4,740)	(5,056)	(13,544)
Comprehensive loss	$ (5,772)	$ (4,272)	$ (6,043)	$ (12,504)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Unrealized holding losses on securities available-for-sale arising during the period, income taxes	$ (1,873)	$ (1,914)	$ (1,788)	$ (5,449)
Reclassification adjustment for securities gains, net and net amortization of bond premiums included in net (loss) income, income taxes	60	71	191	189
Change in interest rate swaps, income tax	0	93	(30)	238
Reclassification adjustment for net interest expense on swaps included in net (loss) income, income taxes	$ 0	$ (11)	$ (230)	$ (9)

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands		Total		Cumulative Adjustment for Change in Accounting Principle [Member]	Common Stock [Member]		Additional Paid-in Capital [Member]		Retained Earnings [Member]		Retained Earnings [Member] Cumulative Adjustment for Change in Accounting Principle [Member]	Accumulated Other Comprehensive (Loss) Income [Member]		Treasury Stock [Member]		Unearned Compensation ESOP [Member]
Beginning Balance at Dec. 31, 2021	[1]	$ 60,468			$ 62		$ 26,783		$ 36,813			$ 721		$ (748)		$ (3,163)
Beginning Balance (shares) at Dec. 31, 2021	[1]				5,117,885
Net (loss) income		1,040							1,040
Other comprehensive loss		(13,544)										(13,544)
Treasury stock activity		(623)												(623)
Treasury stock activity (shares)					(48,849)
Amortization of unearned stock compensation		295														295
ESOP shares earned		94					4									90
Ending Balance at Sep. 30, 2022	[1]	47,730			$ 62		26,787		37,853			(12,823)		(1,371)		(2,778)
Ending Balance (shares) at Sep. 30, 2022	[1]				5,069,036
Beginning Balance at Jun. 30, 2022	[1]	51,872			$ 62		26,785		37,385			(8,083)		(1,371)		(2,906)
Beginning Balance (shares) at Jun. 30, 2022	[1]				5,069,036
Net (loss) income		468							468
Other comprehensive loss		(4,740)										(4,740)
Amortization of unearned stock compensation		98														98
ESOP shares earned		32					2									30
Ending Balance at Sep. 30, 2022	[1]	47,730			$ 62		26,787		37,853			(12,823)		(1,371)		(2,778)
Ending Balance (shares) at Sep. 30, 2022	[1]				5,069,036
Beginning Balance at Dec. 31, 2022		49,337	[1]	$ 5	$ 62	[1]	26,768	[1]	36,248	[1]	$ 5	(9,727)	[1]	(1,377)	[1]	(2,637)	[1]
Beginning Balance (shares) at Dec. 31, 2022	[1]				5,068,540
Accounting Standards Update [Extensible Enumeration]				Accounting Standards Update 2016-13 [Member]							Accounting Standards Update 2016-13 [Member]
Net (loss) income		(987)							(987)
Other comprehensive loss		(5,056)										(5,056)
Issuance of stock compensation							20									(20)
Issuance of stock compensation, (shares)					2,478
Reorganization: Conversion of First Seacoast Bancorp, Inc.		25,722			$ (10)		25,732
Reorganization: Conversion of First Seacoast Bancorp, Inc. , Shares					6,598
Purchase of common stock by the ESOP		(2,244)														(2,244)
Amortization of unearned stock compensation		298														298
Stock-based compensation expense		88					88
ESOP shares earned		99					(16)									115
Ending Balance at Sep. 30, 2023		67,262			$ 52		52,592		35,266			(14,783)		(1,377)		(4,488)
Ending Balance (shares) at Sep. 30, 2023					5,077,616
Beginning Balance at Jun. 30, 2023		72,836			$ 52		52,534		36,177			(9,922)		(1,377)		(4,628)
Beginning Balance (shares) at Jun. 30, 2023					5,077,616
Net (loss) income		(911)							(911)
Other comprehensive loss		(4,861)										(4,861)
Amortization of unearned stock compensation		102														102
Stock-based compensation expense		67					67
ESOP shares earned		29					(9)									38
Ending Balance at Sep. 30, 2023		$ 67,262			$ 52		$ 52,592		$ 35,266			$ (14,783)		$ (1,377)		$ (4,488)
Ending Balance (shares) at Sep. 30, 2023					5,077,616

[1] Adjusted for conversion of First Seacoast Bancorp, Inc.

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Number of shares committed to be released each year,ESOP	3,839	2,492	11,517	7,475
Conversion, net of cost			$ 2.4
Purchase of shares of common stock			224,400

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net (loss) income	$ (987)	$ 1,040
Adjustments to reconcile net (loss) income to net cash (used) provided by operating activities:
Cumulative change in accounting principle (ASU 2016-13)	5
ESOP expense	99	94
Stock based compensation	386	295
Loss on disposition of property and equipment	2
Depreciation and amortization	364	401
Net amortization of bond premium	712	751
Provision for credit losses	170
Gain on sale of loans		(2)
Securities gains, net		(52)
Gain on termination of interest rate swaps	(849)
Proceeds from loans sold		639
Origination of loans sold		(637)
Increase in bank-owned life insurance	(81)	(80)
Increase in deferred costs on loans	(231)	(601)
Deferred tax (benefit) expense	(720)	105
Increase in accrued interest receivable	(142)	(288)
Decrease (increase) in other assets	794	(880)
Increase in deferred compensation liability	160	44
(Decrease) increase in other liabilities	(99)	1,020
Net cash (used) provided by operating activities	(417)	1,849
Cash flows from investing activities:
Proceeds from sales, maturities and principal payments received on securities available-for-sale	3,661	4,087
Purchase of securities available-for-sale	(6,754)	(33,642)
Purchase of property and equipment	(323)	(103)
Loan purchases	(1,221)	(3,002)
Loan originations and principal collections, net	(23,977)	(15,531)
Net redemption (purchase) of Federal Home Loan Bank stock	1,530	(1,658)
Proceeds from sales of interest bearing time deposits with other banks	747	498
Proceeds from termination of interest rate swaps	849
Net cash used by investing activities	(25,488)	(49,351)
Cash flows from financing activities:
Net increase (decrease) in NOW, demand deposits, money market and savings accounts	6,404	(623)
Net increase (decrease) in time deposits	23,018	(5,871)
Increase in mortgagors escrow accounts	1,443	1,400
Proceeds from sale of common stock, net	25,622
Common stock purchased by ESOP	(2,244)
Treasury stock purchases		(623)
Proceeds from advances from Federal Reserve Bank	25,000
Net cash provided by financing activities	24,823	47,713
Net change in cash and cash equivalents	(1,082)	211
Cash and cash equivalents at beginning of period	8,250	6,638
Cash and cash equivalents at end of period	7,168	6,849
Cash activities:
Cash paid for interest	5,633	789
Cash paid for income taxes	41	53
Effect of change in fair value of securities available-for-sale:
Securities available-for-sale	(5,929)	(19,421)
Deferred taxes	1,574	5,260
Other comprehensive loss	(4,355)	(14,161)
Effect of change in fair value of interest rate swaps:
Interest rate swaps	(961)	846
Deferred taxes	260	(229)
Other comprehensive (loss) income	(701)	617
Cumulative fair value hedging adjustment - loans	447
First Seacoast Bancorp, Inc [Member]
Cash flows from financing activities:
Return of capital from conversion of First Seacoast Bancorp, Inc.	100
ASU 2016-13 | Cumulative Adjustment for Change in Accounting Principle [Member]
Effect of the adoption of ASU
Allowance for credit losses on loans	(295)
Other liabilities	290
ASU 2016-02 | Cumulative Adjustment for Change in Accounting Principle [Member]
Effect of the adoption of ASU
Other assets		224
Other liabilities		224
Federal Home Loan Bank Advances [Member]
Cash flows from financing activities:
Net (payments) proceeds from short-term FHLB advances	(39,520)	55,224
Proceeds from long-term FHLB advances		468
Payments on long-term FHLB advances	$ (15,000)	$ (2,262)

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1.Summary of Significant Accounting Policies

The accompanying unaudited consolidated financial statements include the accounts of First Seacoast Bancorp, Inc. (the “Company”), its wholly-owned subsidiary, First Seacoast Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, FSB Service Corporation, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim consolidated financial information, general practices within the banking industry and with instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all the information or footnotes required by U.S. GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of these consolidated financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results which may be expected for the entire year. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 24, 2023.

Corporate Structure

On January 19, 2023, the conversion of First Seacoast Bancorp, MHC from mutual to stock form and the related stock offering by First Seacoast Bancorp, Inc., the new holding company for First Seacoast Bank, was completed. As a result, both First Seacoast Bancorp, MHC and First Seacoast Bancorp (a federal corporation) ceased to exist. First Seacoast Bancorp, Inc.’s common stock began trading on the Nasdaq Capital Market under the trading symbol “FSEA” on January 20, 2023. As a result of the subscription offering, the community offering and the syndicated community offering, First Seacoast Bancorp, Inc. sold a total of 2,805,000 shares of its common stock at a price of $10.00 per share, which includes 224,400 shares sold to First Seacoast Bank’s Employee Stock Ownership Plan. As part of the conversion transaction, each outstanding share of First Seacoast Bancorp (a federal corporation) common stock owned by the public stockholders of First Seacoast Bancorp (a federal corporation) (stockholders other than First Seacoast Bancorp, MHC) as of the closing date was converted into shares of First Seacoast Bancorp, Inc. common stock based on an exchange ratio of 0.8358 shares of First Seacoast Bancorp, Inc. common stock for each share of First Seacoast Bancorp (a federal corporation) common stock.

The Bank offers a full range of banking and wealth management services to its customers. The Bank focuses on four core services that center around customer needs. The core services include residential lending, commercial banking, personal banking and wealth management. The Bank offers a full range of commercial and consumer banking services through its network of five full-service branch locations.

The Bank is engaged principally in the business of attracting deposits from the public and investing those funds in various types of loans, including residential and commercial real estate loans, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities. Deposits at the Bank are insured by the Federal Deposit Insurance Corporation (“FDIC”) for the maximum amount permitted by law.

The Company has one reportable segment, “Banking Services.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and other borrowings and manage interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit.

Investment management services are offered through FSB Wealth Management. FSB Wealth Management is a division of First Seacoast Bank. The division currently consists of two financial advisors who are located in Dover, New Hampshire. FSB Wealth Management provides access to non-FDIC insured products that include retirement planning, portfolio management, investment and insurance strategies, business retirement plans and college planning to individuals throughout our primary market area. These investments and services are offered through a third-party registered broker-dealer and investment advisor. FSB Wealth Management receives fees from advisory services and commissions on individual investment and insurance products purchased by clients. The assets held for wealth management customers are not assets of the Company and, accordingly, are not reflected in the Company’s consolidated balance sheets.

On August 17, 2021, the Bank entered into a definitive agreement with an investment advisory and wealth management firm (the “seller”) to purchase certain of its client accounts and client relationships for a final adjusted purchase price of $324,000 which is included in other assets at September 30, 2023. The client accounts purchased are recorded as a customer list intangible asset. Identifiable intangible assets that are subject to amortization will be reviewed for impairment, at least annually, based on their fair value. Any impairment will be recognized as a charge to earnings and the adjusted carrying amount of the intangible asset will become its new accounting basis. The remaining useful life of the intangible asset will also be evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company is amortizing the customer list intangible on a straight-line basis over a ten-year period. During the three months ended September 30, 2023 and 2022, $8,000 and $9,000 of amortization expense was recorded in other expense, respectively. During the nine months ended September 30, 2023 and 2022, $22,000 and $27,000 of amortization expense was recorded in other expense, respectively.

Recently Adopted Accounting Standards

As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards without an extended transition period. As of September 30, 2023, there was no significant difference in the comparability of the Company’s consolidated financial statements as a result of this extended transition period. The Company’s status as an “emerging growth company” will end on the earlier of: (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering (which will be December 31, 2024 for the Company); (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates).

In March 2022, the FASB issued ASU 2022-2,“Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the troubled debt restructuring (“TDR”) accounting model for creditors that have adopted Topic 326, “Financial Instruments – Credit Losses.” All other creditors must continue to apply the TDR accounting model until they adopt ASU 2016-13,“Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Due to the removal of the TDR accounting model, all loan modifications are accounted for under the general loan modification guidance in Subtopic 310-20. In addition, on a prospective basis, entities are subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements also are required to prospectively disclose current-period gross write-off information by vintage (that is, year of origination). This ASU becomes effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” to increase stakeholder awareness of the improvements made to the various amendments to Topic 326 and to clarify certain areas of guidance as companies transition to the new standard. Also during November 2019, the FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates,” finalizing various effective date deferrals for private companies, not-for-profit organizations and certain smaller reporting companies applying the credit losses (CECL), leases and hedging standards. The effective date for ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” is deferred to years beginning after December 15, 2022. The effective dates for ASU 2016-02, “Leases (Topic 842)” was deferred to fiscal years beginning after December 15, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

In April 2019, the FASB issued ASU 2019-04,“Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” to increase stakeholders’ awareness of the amendments and to expedite improvements to the Codification. In May 2019, the FASB issued ASU 2019-05,“Financial Instruments—Credit Losses, Topic 326.” This ASU addresses certain stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. On October 16, 2019, the FASB approved a proposal to delay the implementation of this standard for smaller reporting companies to years beginning after December 15, 2022. Early adoption was permitted. See the next paragraph for further discussion regarding the implementation of this standard.

In June 2016, the FASB issued ASU 2016-13,“Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which creates a new credit impairment standard for financial assets measured at amortized cost and available-for-sale debt securities. The ASU requires financial assets measured at amortized cost (including loans and held-to-maturity debt securities) to be presented at the net amount expected to be collected, through an allowance for credit losses that are expected to occur over the remaining life of the asset, rather than incurred losses. The ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a direct write-down. The measurement of credit losses for newly recognized financial assets (other than certain purchased assets) and subsequent changes in the allowance for credit losses are recorded in the statement of (loss) income as the amounts expected to be collected change. The ASU was originally to be effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. In November 2018, the FASB issued ASU 2018-19,“Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” extending the implementation date by one year for smaller reporting companies and clarifying that operating lease receivables are outside the scope of Accounting. In November, 2019, the FASB issued ASU 2019-10, which delayed the effective date for ASU 2016-13 for smaller reporting companies, resulting in ASU 2016-13 becoming effective in the first quarter of 2023 for the Company. The ASU requires the measurement of all expected credit losses for loans held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, the ASU requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today are still permitted, though the inputs to those techniques have changed to reflect the full amount of expected credit losses. The Company has selected a loss estimation methodology which utilizes a third-party software application. The Company has recorded the effect of implementing this ASU using a modified-retrospective approach through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which the ASU was effective, which was January 1, 2023. The adoption of the new standard resulted in a decrease to its allowance for credit losses on loans (“ACL”). This decrease, though, was offset by an increase in the allowance for credit losses on off-balance sheet ("OBS") commitments that are not unconditionally cancelable. The decrease in ACL was due to a reduced emphasis on qualitative factors under the CECL model as the underlying historical loss data of the selected peer group is much more robust with broader time horizons as compared to the Company's actual historical loss data used under an incurred loss methodology. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements (see below and Note 3, Loans, for more information).

January 1, 2023 CECL Transition (Day 1) Impact

The CECL methodology reflects the Company's view of the state of the economy and forecasted macroeconomic conditions and their impact on the Company's loan portfolio as of the adoption date.

The following table illustrates the impact of the adoption of ASU 2016-13:

	January 1, 2023
	As reported under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
	(Dollars in thousands)
ASSETS
Allowance for credit losses on loans:
Commercial real estate (CRE)	$	788	$	942	$	(154	)
Multifamily (MF)		55		54		1
Commercial and industrial (C+I)		273		184		89
Acquisition, development, and land (ADL)		120		138		(18	)
1-4 family residential (RES)		1,847		2,048		(201	)
Home equity line of credit (HELOC)		88		81		7
Consumer (CON)		114		100		14
Unallocated		1		34		(33	)
Allowance for credit losses on loans	$	3,286	$	3,581		(295	)
LIABILITIES
Allowance for credit losses on OBS credit exposures	$	308	$	18	$	290

Recent Accounting Pronouncements Yet To Be Adopted

The Company considers the applicability and impact of all ASUs. Recent accounting pronouncements issued by the FASB not listed below did not have, or are not expected to have, a material impact on the Company's present or future consolidated financial statements.

In January 2021, the FASB issued ASU 2021-1, “Reference Rate Reform (Topic 848) (Scope),” which clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting applied to derivatives that are affected by the discounting transition. This ASU was to become effective immediately for all entities on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The effective date was extended by the issuance of

ASU No. 2022-06, “Reference Rate Reform (Topic 848),” which, as noted above, defers the sunset date of Topic 848 from December 2022 to December 2024. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements.

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Securities Available-for-Sale

9 Months Ended

Sep. 30, 2023

Debt Securities, Available-for-Sale [Abstract]

Securities Available For Sale

2.Securities Available-for-Sale

The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses for which an allowance for credit losses has not been recorded, are as follows as of September 30, 2023 and December 31, 2022:

	September 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. Government-sponsored enterprises obligations	$	2,172	$	—	$	(403	)	$	1,769
U.S. Government agency small business administration    pools guaranteed by SBA		8,625		—		(1,381	)		7,244
Collateralized mortgage obligations issued by the    FHLMC, FNMA and GNMA		6,401		—		(809	)		5,592
Residential mortgage-backed securities		26,202		—		(5,470	)		20,732
Municipal bonds		70,645		—		(11,003	)		59,642
Corporate debt		500		—		(14	)		486
Corporate subordinated debt		8,237		—		(1,150	)		7,087
	$	122,782	$	—	$	(20,230	)	$	102,552
	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. Government-sponsored enterprises obligations	$	2,191	$	—	$	(365	)	$	1,826
U.S. Government agency small business administration    pools guaranteed by SBA		9,475		—		(1,116	)		8,359
Collateralized mortgage obligations issued by the    FHLMC, FNMA and GNMA		6,922		8		(708	)		6,222
Residential mortgage-backed securities		26,390		—		(4,567	)		21,823
Municipal bonds		69,373		172		(7,129	)		62,416
Corporate debt		500		—		(3	)		497
Corporate subordinated debt		5,550		—		(593	)		4,957
	$	120,401	$	180	$	(14,481	)	$	106,100

The amortized cost and fair values of securities available-for-sale at September 30, 2023 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2023
	Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years		2,234		1,410
Due after five years through ten years		9,988		7,962
Due after ten years		69,332		59,612
Total U.S. Government-sponsored enterprises obligations,    municipal bonds, corporate debt and corporate subordinated debt		81,554		68,984
U.S. Government agency small business pools guaranteed    by SBA(1)		8,625		7,244
Collateralized mortgage obligations issued by the FHLMC,    FNMA, and GNMA(1)		6,401		5,592
Residential mortgage-backed securities(1)		26,202		20,732
Total	$	122,782	$	102,552

(1) Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans.

The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at September 30, 2023 and December 31, 2022.

	Less than 12 Months							More than 12 Months							Total
	Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in thousands)
September 30, 2023
U.S. Government sponsored    enterprises obligations		—	$	—	$	—			4	$	1,769	$	(403	)	$	1,769	$	(403	)
U.S. Government agency small    business administration pools    guaranteed by SBA		—		—		—			11		7,244		(1,381	)		7,244		(1,381	)
Collateralized mortgage    obligations issued by    the FHLMC, FNMA    and GNMA		1		906		(21	)		9		4,686		(788	)		5,592		(809	)
Residential mortgage    backed securities		3		2,228		(94	)		31		18,504		(5,376	)		20,732		(5,470	)
Municipal bonds		20		14,151		(968	)		85		45,491		(10,035	)		59,642		(11,003	)
Corporate debt		1		486		(14	)		—		—		—			486		(14	)
Corporate subordinated debt		3		3,082		(120	)		4		4,005		(1,030	)		7,087		(1,150	)
		28	$	20,853	$	(1,217	)		144	$	81,699	$	(19,013	)	$	102,552	$	(20,230	)
December 31, 2022
U.S. Government sponsored    enterprises obligations		1	$	453	$	(43	)		3	$	1,373	$	(322	)	$	1,826	$	(365	)
U.S. Government agency small    business administration pools    guaranteed by SBA		8		5,947		(602	)		3		2,412		(514	)		8,359		(1,116	)
Collateralized mortgage    obligations issued by    the FHLMC, FNMA    and GNMA		5		3,212		(209	)		4		2,016		(499	)		5,228		(708	)
Residential mortgage    backed securities		8		4,239		(503	)		23		16,649		(4,064	)		20,888		(4,567	)
Municipal bonds		86		49,228		(5,900	)		8		5,769		(1,229	)		54,997		(7,129	)
Corporate debt		1		497		(3	)		—		—		—			497		(3	)
Corporate subordinated debt		4		4,457		(593	)		—		—		—			4,457		(593	)
		113	$	68,033	$	(7,853	)		41	$	28,219	$	(6,628	)	$	96,252	$	(14,481	)

Management evaluates securities available-for-sale in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At September 30, 2023, the Company had 172 securities available-for-sale in an unrealized loss position without an allowance for credit losses. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of September 30, 2023, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in market interest rates and other market conditions, and therefore the Company carried no allowance for credit losses on securities available-for-sale as of September 30, 2023.

Proceeds from sales, maturities, principal payments received and gross realized gains and losses on securities available-for-sale were as follows for the three and nine months ended September 30, 2023 and 2022:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(Dollars in thousands)
Proceeds from sales, maturities and principal payments      received on securities available-for-sale	$	1,450	$	1,545	$	3,661	$	4,087
Gross realized gains		—		—		—		52
Gross realized losses		—		—		—		—
Net realized gains	$	—	$	—	$	—	$	52

As of September 30, 2023 and December 31, 2022, there were no holdings of securities of any issuer, other than the SBA, FHLMC, GNMA and FNMA, whose aggregate carrying value exceeded 10% of stockholders’ equity.

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Loans and Allowance for Credit Losses on Loans

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Loans and Allowance for Credit Losses on Loans

3.Loans and Allowance for Credit Losses on Loans

The Company's lending activities are primarily conducted in and around Dover, New Hampshire and in the areas surrounding its branches. The Company grants commercial real estate loans, multifamily 5+ dwelling unit loans, commercial and industrial loans, acquisition, development and land loans, 1–4 family residential loans, home equity line of credit loans and consumer loans. Most loans are collateralized by real estate. The ability and willingness of real estate, commercial and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate sector in the borrowers’ geographic area and the general economy.

Loans consisted of the following at September 30, 2023 and December 31, 2022:

	September 30, 2023			December 31, 2022
	(Dollars in thousands)
Commercial real estate (CRE)	$	87,295		$	80,506
Multifamily (MF)		7,679			8,185
Commercial and industrial (C+I)		24,875			24,059
Acquisition, development, and land (ADL)		19,255			18,490
1-4 family residential (RES)		264,477			251,466
Home equity line of credit (HELOC)		12,614			10,161
Consumer (CON)		8,610			7,189
Total loans		424,805			400,056
Net deferred loan costs		2,680			2,449
Allowance for credit losses on loans		(3,349	)		(3,581	)
Total loans, net	$	424,136		$	398,924

Allowance for Credit Losses on Loans ("ACL")

Effective January 1, 2023, the Company adopted the new accounting standard for credit losses, ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended ("ASU 2016-13"). This new accounting standard, commonly referred to as "CECL," significantly changed the methodology for accounting for reserves on loans and unfunded off-balance sheet credit exposures, including certain unfunded loan commitments and standby guarantees. ASU 2016-13 replaced the "incurred loss" methodology used to establish an allowance on loans and off-balance sheet credit exposures, with an "expected loss" approach. Under CECL, the ACL at each reporting period serves as a best estimate of projected credit losses over the contractual life of certain assets, adjusted for expected prepayments, given an expectation of economic conditions and forecasts as of the valuation date. Upon adoption of CECL, the Company made the following elections regarding accrued interest receivable: (i) present accrued interest receivable balances separately on the balance sheet on the consolidated statements of condition; (ii) exclude accrued interest from the measurement of the ACL, including investments and loans; and (iii) continue to write-off accrued interest receivable by reversing interest income. The Company has a policy in place to write-off accrued interest when a loan is placed on non-accrual. Accrued interest is written-off by reversing previously recorded interest income. For loans, write-off typically occurs when a loan has been in default for 90 days or more. An immaterial amount of accrued interest on non-accrual loans was written off during the three and nine months ended September 30, 2023, by reversing interest income. Historically, the Company has not experienced uncollectible accrued interest receivable on its securities available-for-sale.

The ACL is the sum of various components including the following: (a) historical loss experience, (b) a reasonable and supportable forecast, (c) loans evaluated individually, and (d) changes in relevant environmental factors. The historical loss component is segmented by loan type and serves as the core of the ACL adequacy methodology. The Company has selected the Weighted Average Remaining Maturity Model (“WARM”), for the loss calculation of each of the Bank’s loan pools utilizing a third-party software application. The WARM uses a quarterly loss rate and future expectations of loan balances to calculate an ACL. A loss rate is applied to pool balances over time.

CECL may create more volatility in the ACL, specifically the ACL on loans and ACL on off-balance sheet credit exposures. Under CECL, the ACL may increase or decrease period to period based on many factors, including, but not limited to: (i) macroeconomic forecasts and conditions; (ii) forecast period and reversion speed; (iii) prepayment speed assumption; (iv) loan portfolio volumes and changes in mix; (v) credit quality; and (vi) various qualitative factors outlined in ASU 2016-13.

The significant key assumptions used with the ACL calculation at September 30, 2023 using the CECL methodology, included:

•Macroeconomic factors (loss drivers): Monitoring and assessing local and national unemployment, changes in national GDP and other macroeconomic factors which may be the most predictive indicator of losses within the loan portfolio. The macroeconomic factors considered in determining the ACL may change from time to time.

•Forecast Period and Reversion speed: ASU 2016-13 requires a company to use a reasonable and supportable forecast period in developing the ACL, which represents the time period that management believes it can reasonably forecast the identified loss drivers. Generally, the forecast period management believes to be reasonable and supportable will be set annually and validated through an assessment of economic leading indicators. In periods of greater volatility and uncertainty, such as the current interest rate environment, management will likely use a shorter forecast period, whereas when markets, economies, interest rate environment, political matters, and other factors are considered to be more stable and certain, a longer forecast period may be used. Also, in times of greater uncertainty, management may consider a range of possible forecasts and evaluate the probability of each scenario. Generally, the forecasted period is expected to range from one to three years. Once the reasonable and supportable forecast period is determined, ASU 2016-13 requires a company to revert its loss expectations to the long-run historical mean for the remainder of the contract life of the asset, adjusted for prepayments. In determining the length of time over which the reversion will take place (i.e. "reversion speed"), factors such as, historical credit loss experience over previous economic cycles, as well as where the Company believes it is within the current economic cycle, will be considered. The Company has chosen a forecast period of six quarters which will be similar to the historical loss period between September 2007 and March 2009 and then reverting to the long-term average over the following six quarters using the straight-line reversion method. The Company believes this historical forecast period to be representative of potential economic conditions over the next eighteen months.

•Prepayment speeds: Prepayment speeds are determined for each loan segment utilizing the Company's historical loan data, as well as consideration of current environmental factors. The prepayment speed assumption is utilized with the WARM method to forecast expected cash flows over the contractual life of the loan, adjusted for expected prepayments. A higher prepayment speed assumption will drive a lower ACL, and vice versa.

•Qualitative factors: As within previous accounting guidance used for the "incurred loss" model, ASU 2016-13 requires companies to consider various qualitative factors that may impact expected credit losses. The Company continues to consider qualitative factors in determining and arriving at an ACL at each reporting period such as: (i) actual or expected changes in economic trends and conditions, (ii) changes in the value of underlying collateral for loans, (iii) changes to lending policies, underwriting standards and/or management personnel performing such functions, (iv) delinquency and other credit quality trends, (v) credit risk concentrations, if any, (vi) changes to the nature of the Company's business impacting the loan portfolio, (vii) and other external factors, that may include, but are not limited to, results of internal loan reviews and examinations by bank regulatory agencies.

Certain loans which may not share similar risk characteristics with other loans in the portfolio may be tested individually for estimated credit losses, including (i) loans classified as special mention, substandard or doubtful and are on non-accrual, (ii) a loan modified for a borrower experiencing financial difficulty or (iii) loans that have other unique characteristics. Factors considered in measuring the extent of the expected credit loss for these loans may include payment status, collateral value, borrower's financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due.

Changes in the ACL for the three and nine months ended September 30, 2023, under the CECL model, by portfolio segment, are summarized as follows:

(Dollars in thousands)	CRE			MF		C+I		ADL			RES			HELOC		CON			Unallocated			Total
Balance, June 30, 2023	$	806		$	49	$	277	$	70		$	1,910		$	85	$	109		$	13		$	3,319
Provision for credit losses on loans		(18	)		22		11		31			(174	)		76		95			(13	)		30
Charge-offs		—			—		—		—			—			—		—			—			—
Recoveries		—			—		—		—			—			—		—			—			—
Balance, September 30, 2023	$	788		$	71	$	288	$	101		$	1,736		$	161	$	204		$	—		$	3,349
Balance, December 31, 2022, Prior to Adoption of ASC 326	$	942		$	54	$	184	$	138		$	2,048		$	81	$	100		$	34		$	3,581
Impact of adopting ASC 326		(154	)		1		89		(18	)		(202	)		7		14			(32	)		(295	)
Provision for credit losses on loans		—			16		15		(19	)		(110	)		73		92			(2	)		65
Charge-offs		—			—		—		—			—			—		(4	)		—			(4	)
Recoveries		—			—		—		—			—			—		2			—			2
Balance, September 30, 2023	$	788		$	71	$	288	$	101		$	1,736		$	161	$	204		$	—		$	3,349

Changes in the allowance for credit losses on loans for the three and nine months ended September 30, 2022, under the incurred loss model, by portfolio segment, are summarized as follows:

(Dollars in thousands)	CRE			MF			C+I			ADL			RES			HELOC		CON			Unallocated		Total
Balance, June 30, 2022	$	1,019		$	57		$	208		$	110		$	2,025		$	87	$	111		$	27	$	3,644
Provision for loan losses		(75	)		(1	)		(11	)		16			24			4		(18	)		1		(60	)
Charge-offs		—			—			—			—			—			—		—			—		—
Recoveries		—			—			—			—			—			—		—			—		—
Balance, September 30, 2022	$	944		$	56		$	197		$	126		$	2,049		$	91	$	93		$	28	$	3,584
Balance, December 31, 2021	$	833		$	80		$	194		$	178		$	2,139		$	63	$	75		$	28	$	3,590
Provision for loan losses		111			(24	)		2			(52	)		(90	)		28		25			—		—
Charge-offs		—			—			—			—			—			—		(9	)		—		(9	)
Recoveries		—			—			1			—			—			—		2			—		3
Balance, September 30, 2022	$	944		$	56		$	197		$	126		$	2,049		$	91	$	93		$	28	$	3,584

As of September 30, 2023 and December 31, 2022, information about loans, the ACL and the ALL, by portfolio segment, are summarized below:

(Dollars in thousands)	CRE		MF		C+I		ADL		RES		HELOC		CON		Unallocated		Total
September 30, 2023 Loan Balances
Individually evaluated to determine expected credit losses	$	—	$	—	$	—	$	—	$	184	$	—	$	—	$	—	$	184
Collectively evaluated to determine expected credit losses		87,295		7,679		24,875		19,255		264,293		12,614		8,610		—		424,621
Total	$	87,295	$	7,679	$	24,875	$	19,255	$	264,477	$	12,614	$	8,610	$	—	$	424,805
ACL related to the loans
Individually evaluated to determine expected credit losses	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated to determine expected credit losses		788		71		288		101		1,736		161		204		—		3,349
Total	$	788	$	71	$	288	$	101	$	1,736	$	161	$	204	$	—	$	3,349
December 31, 2022 Loan Balances
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	273	$	—	$	5	$	—	$	278
Collectively evaluated for impairment		80,506		8,185		24,059		18,490		251,193		10,161		7,184		—		399,778
Total	$	80,506	$	8,185	$	24,059	$	18,490	$	251,466	$	10,161	$	7,189	$	—	$	400,056
ALL related to the loans
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		942		54		184		138		2,048		81		100		34		3,581
Total	$	942	$	54	$	184	$	138	$	2,048	$	81	$	100	$	34	$	3,581

The following is an aging analysis of past due loans by portfolio segment as of September 30, 2023, including non-accrual loans without an ACL:

(Dollars in thousands)	30-59 Days		60-89 Days		90 + Days		Total Past Due		Current		Total Loans		Non-Accrual Loans
CRE	$	—	$	—	$	—	$	—	$	87,295	$	87,295	$	—
MF		—		—		—		—		7,679		7,679		—
C+I		—		—		—		—		24,875		24,875		—
ADL		—		—		—		—		19,255		19,255		—
RES		—		—		—		—		264,477		264,477		—
HELOC		—		—		—		—		12,614		12,614		—
CON		—		—		—		—		8,610		8,610		—
	$	—	$	—	$	—	$	—	$	424,805	$	424,805	$	—

Interest income recognized on non-accrual loans during three and nine months ended September 30, 2023 was $-0-.

The following is an aging analysis of past due loans by portfolio segment as of December 31, 2022:

(Dollars in thousands)	30-59 Days		60-89 Days		90 + Days		Total Past Due		Current		Total Loans		Non- Accrual Loans
CRE	$	—	$	—	$	—	$	—	$	80,506	$	80,506	$	—
MF		—		—		—		—		8,185		8,185		—
C+I		—		—		—		—		24,059		24,059		—
ADL		—		—		—		—		18,490		18,490		—
RES		—		84		—		84		251,382		251,466		84
HELOC		5		—		—		5		10,156		10,161		—
CON		7		—		—		7		7,181		7,189		5
	$	12	$	84	$	—	$	96	$	399,960	$	400,056	$	89

The Company's one collateral-dependent non-accrual RES loan had an amortized cost basis of $84,000 and was secured by real estate with an appraised value of $422,000. The property was sold in April 2023 and the loan was repaid.

There were no loans collateralized by residential real estate property in the process of foreclosure at September 30, 2023 or December 31, 2022.

The following table provides information on impaired loans as of and for the year ended December 31, 2022:

	As of December 31, 2022						At December 31, 2022
(Dollars in thousands)	Recorded Carrying Value		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
CRE	$	—	$	—	$	—	$	—	$	—
MF		—		—		—		—		—
C+I		—		—		—		—		—
ADL		—		—		—		—		—
RES		273		273		—		446		32
HELOC		—		—		—		57		3
CON		5		5		—		2		—
Total	$	278	$	278	$	—	$	505	$	35

There were no loans modified for borrowers experiencing financial difficulty during the nine months ended September 30, 2023. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification, if applicable. The ACL incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. Because the effect of most modifications made to borrowers experiencing financial difficulty would already be included in the ACL as a result of the measurement methodologies used to estimate the allowance, a change in the ACL is generally not recorded upon modification. There were no loans modified and determined to be a troubled debt restructuring during the year ended December 31, 2022.

Credit Quality Information

The Company utilizes a ten-grade internal loan rating system for its commercial real estate, multifamily, commercial and industrial and acquisition, development, and land loans. Residential real estate, home equity line of credit and consumer loans are considered “pass” rated loans until they become delinquent. Once delinquent, loans can be rated an 8, 9 or 10 as applicable.

Loans rated 1 through 6: Loans in these categories are considered “pass” rated loans with low to average risk.

Loans rated 7: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management.

Loans rated 8: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Bank will sustain some loss if the weakness is not corrected.

Loans rated 9: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 10: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted and should be charged off.

On an annual basis, or more often if needed, the Company formally reviews the ratings on its commercial and industrial, commercial real estate and multifamily loans. On a periodic basis, the Company engages an independent third party to review a significant portion of loans within these segments and to assess the credit risk management practices of its commercial lending department. Management uses the results of these reviews as part of its annual review process, adequacy of the ACL on loans and overall credit risk administration.

On a quarterly basis, the Company formally reviews the ratings on its applicable residential real estate and home equity loans if they have become classified as non-accrual. Criteria used to determine ratings consist of loan-to-value ratios and days delinquent.

Based upon the most recent analysis performed, the risk category of loans by portfolio segment by vintage, reported under the CECL methodology, was as follows as of September 30, 2023:

(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
CRE:
Risk rating:
Pass	$	9,756	$	10,257	$	8,123	$	2,821	$	4,849	$	17,307	$	34,182	$	—	$	87,295
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total CRE		9,756		10,257		8,123		2,821		4,849		17,307		34,182		—		87,295
MF:
Risk rating:
Pass		—		148		5,201		1,093		—		875		362		—		7,679
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total MF		—		148		5,201		1,093		—		875		362		—		7,679
C+I:
Risk rating:
Pass		2,813		6,928		4,363		3,006		1,635		2,255		3,875		—		24,875
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total C+I		2,813		6,928		4,363		3,006		1,635		2,255		3,875		—		24,875
ADL:
Risk rating:
Pass		11,077		6,050		1,507		—		—		621		—		—		19,255
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total ADL		11,077		6,050		1,507		—		—		621		—		—		19,255
RES:
Risk rating:
Pass		12,513		41,831		64,656		52,469		20,150		72,858		—		—		264,477
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total RES		12,513		41,831		64,656		52,469		20,150		72,858		—		—		264,477
HELOC:
Risk rating:
Pass		—		—		—		—		—		—		12,614		—		12,614
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total HELOC		—		—		—		—		—		—		12,614		—		12,614
CON:
Risk rating:
Pass		2,157		2,466		1,956		1,534		271		226		—		—		8,610
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total CON		2,157		2,466		1,956		1,534		271		226		—		—		8,610
Total	$	38,316	$	67,680	$	85,806	$	60,923	$	26,905	$	94,142	$	51,033	$	—	$	424,805

The following presents the internal risk rating of loans by portfolio segment as of December 31, 2022:

(Dollars in thousands)	Pass		Special Mention		Substandard		Total
CRE	$	77,820	$	2,686	$	—	$	80,506
MF		8,185		—		—		8,185
C+I		24,059		—		—		24,059
ADL		18,490		—		—		18,490
RES		251,382		—		84		251,466
HELOC		10,161		—		—		10,161
CON		7,184		—		5		7,189
Total	$	397,281	$	2,686	$	89	$	400,056

Certain directors and executive officers of the Company and entities in which they have significant ownership interests are customers of the Bank. Loans outstanding to these persons and entities at September 30, 2023 and December 31, 2022 were $5.3 million and $4.4 million, respectively.

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Loan Servicing

9 Months Ended

Sep. 30, 2023

Transfers and Servicing [Abstract]

Loan Servicing

4.Loan Servicing

Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of such loans were $34.1 million and $36.0 million at September 30, 2023 and December 31, 2022, respectively. Substantially all of these loans were originated by the Bank and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 15, Fair Value of Assets and Liabilities, for more information). Changes to the balance of mortgage servicing rights are recorded in loan servicing fee income in the Company’s consolidated statements of (loss) income.

The Company’s mortgage servicing activities include: collecting principal, interest and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to investors. Loan servicing income, including late and ancillary fees, was $9,000 and $27,000 for the three months ended September 30, 2023 and 2022, respectively, and $47,000 and $116,000 for the nine months ended September 30, 2023 and 2022, respectively. The Company's residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in the Company’s market areas.

The following summarizes activity in mortgage servicing rights for the three and nine months ended September 30, 2023 and 2022:

(Dollars in thousands)	2023			2022
Balance, June 30,	$	350		$	364
Additions		—			1
Payoffs		(2	)		(6	)
Change in fair value due to change in assumptions		(10	)		10
Balance, September 30,		338			369
Balance, January 1,		357			322
Additions		—			6
Payoffs		(5	)		(24	)
Change in fair value due to change in assumptions		(14	)		65
Balance, September 30,	$	338		$	369

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Deposits

9 Months Ended

Sep. 30, 2023

Deposits [Abstract]

Deposits

5.Deposits

Deposits consisted of the following at September 30, 2023 and December 31, 2022:

(Dollars in thousands)	September 30, 2023		December 31, 2022
NOW and demand deposits	$	174,284	$	204,739
Money market deposits		85,825		60,931
Savings deposits		66,919		54,954
Time deposits of $250,000 and greater		13,980		7,796
Time deposits less than $250,000		70,777		53,943
	$	411,785	$	382,363

At September 30, 2023, the scheduled maturities of time deposits were as follows:

(Dollars in thousands)	Total
2023	$	26,320
2024		41,523
2025		12,401
2026		3,212
2027		1,141
2028		160
	$	84,757

There were $23.6 million and $18.1 million of brokered time deposits which were bifurcated into amounts below the FDIC insurance limit at September 30, 2023 and December 31, 2022, respectively. Additionally, there were $20.6 million and $-0- of brokered deposits included in savings deposits at September 30, 2023 and December 31, 2022, respectively.

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Borrowings

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Borrowings

6.Borrowings

Federal Home Loan Bank (“FHLB”)

A summary of borrowings from the FHLB is as follows:

		September 30, 2023
Principal Amounts			Maturity Dates		Interest Rates
(Dollars in thousands)
$	42,209			2023	5.22% to 5.57% – fixed
	800			2024	0.00% – fixed
	520			2025	0.00% – fixed
	718			2028	0.00% – fixed
	200			2030	0.00% – fixed
	430			2031	0.00% – fixed
$	44,877
		December 31, 2022
Principal Amounts			Maturity Dates		Interest Rates
(Dollars in thousands)
$	96,729			2023	0.44% to 4.38% – fixed
	800			2024	0.00% – fixed
	520			2025	0.00% – fixed
	718			2028	0.00% – fixed
	200			2030	0.00% – fixed
	430			2031	0.00% – fixed
$	99,397

All borrowings from the FHLB are secured by a blanket security agreement on qualified collateral, principally residential mortgage loans, in an aggregate amount equal to outstanding advances. The Bank’s unused remaining available borrowing capacity at the FHLB was approximately $99.2 million and $36.5 million at September 30, 2023 and December 31, 2022, respectively. At September 30, 2023 and December 31, 2022, the Bank had sufficient collateral at the FHLB to support its obligations and was in compliance with the FHLB’s collateral pledging program. As of September 30, 2023 and December 31, 2022, borrowings include $2.7 million of advances through the FHLB’s Jobs for New England program where certain qualifying small business loans that create or preserve jobs, expand woman-, minority- or veteran- owned businesses or otherwise stimulate the economy in New England communities are offered at an interest rate of 0%.

At September 30, 2023 and December 31, 2022, the Bank had an overnight line of credit with the FHLB that may be drawn up to $3.0 million. Additionally, the Bank had a total of $5.0 million of unsecured Fed Funds borrowing lines of credit with two correspondent banks. The entire balance of all these credit facilities was available at September 30, 2023 and December 31, 2022.

Federal Reserve Bank of Boston (“FRB”)

During June 2023, the Bank established two secured credit facilities with the FRB – Bank Term Funding Program (“BTFP”) and Borrower-In-Custody of Collateral Program (“BIC”). On July 25, 2023, the Bank borrowed $25.0 million under the FRB BTFP, for a term of one year, at a fixed annual rate of 5.48%. At September 30, 2023, the Bank’s remaining borrowing capacity is $7.3 million under the BTFP and is based upon eligible collateral, principally government-sponsored enterprise obligations, mortgage-backed securities and collateralized mortgage obligations issued by various U.S. Government agencies, owned as of March 12, 2023. The interest rate for term advances under the BTFP will be the one-year overnight index swap rate plus 10 basis points and fixed for the term of the advance – up to one year - on the day the advance is made. At September 30, 2023, the Bank’s borrowing capacity is $55.5 million under the BIC and is based upon eligible collateral - principally general obligation municipal bonds. The entire balance of this credit facility was available at September 30, 2023.

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Off-Balance Sheet Credit Exposures

9 Months Ended

Sep. 30, 2023

Credit Loss [Abstract]

Off-Balance Sheet Credit Exposures

7.Off-Balance Sheet Credit Exposures

The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, unadvanced funds on loans and standby letters of credit. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but generally includes secured interests in mortgages.

Standby letters of credit are conditional commitments issued by the Bank to guarantee performance by a customer to a third-party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Notional amounts of financial instruments with off-balance sheet credit risk are as follows as of September 30, 2023 and December 31, 2022:

	2023		2022
Unadvanced portions of loans	$	65,773	$	44,929
Commitments to originate loans		7,977		16,134
Standby letters of credit		—		302

The Company records an ACL for off-balance sheet credit exposures that are not unconditionally cancelable through a charge to the provision for credit losses on the Company’s consolidated statements of (loss) income. At September 30, 2023 and December 31, 2022, the ACL for off-balance sheet credit exposures totaled $413,000 and $18,000, respectively, and was included in other liabilities on the Company’s consolidated balance sheets. The provision for credit losses for off-balance sheet credit exposures for the three months ended September 30, 2023 and 2022 was $90,000 and $-0-, respectively. The provision for credit losses for off-balance sheet credit exposures for the nine months ended September 30, 2023 and 2022 was $105,000 and $-0-, respectively.

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Employee Benefits

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Employee Benefits

8.Employee Benefits

401(k) Plan

The Company sponsors a 401(k) defined contribution plan for substantially all employees pursuant to which employees of the Company could elect to make contributions to the plan subject to Internal Revenue Service limits. The Company makes matching and profit-sharing contributions to eligible participants in accordance with plan provisions. The Company’s contributions for the three months ended September 30, 2023 and 2022 were $59,000 and $56,000, respectively, and $163,000 and $153,000 for the nine months ended September 30, 2023 and 2022, respectively.

Pension Plan

The Company participated in the Pentegra Defined Benefit Plan for Financial Institutions (The Pentegra DB Plan), a tax-qualified defined benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413 (c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers.

The Company enacted a “hard freeze” for the Pentegra DB Plan as of December 31, 2018, eliminating all future service-related accruals for participants. Prior to this enactment the Company maintained a “soft freeze” status that continued service-related accruals for its active participants with no new participants permitted into the Pentegra DB Plan. On May 26, 2022, the board of directors approved a resolution authorizing the Company to give notice of its intent to withdraw from the Pentegra DB Plan as of September 30, 2022. On September 30, 2022, the Company proceeded with its notification to withdraw from the Pentegra DB Plan as of September 30, 2022. As a result, a contribution amount that achieved a funded status of 100% - market value of plan assets equal to the final withdrawal liability - was due. The final withdrawal liability amounted to $1.5 million of which $200,000 was paid prior to December 31, 2022 and $1.3 million of pension expense was accrued at December 31, 2022 and subsequently paid in January 2023. A final settlement credit of $14,000 was received in June 2023.

Total pension plan (credit) expense for the three months ended September 30, 2023 and 2022 was $-0- and $50,000, respectively, and $(14,000) and $150,000 for the nine months ended September 30, 2023 and 2022, respectively, and is included in salaries and employee benefits expense in the accompanying consolidated statements of (loss) income.

Supplemental Executive Retirement Plans

Salary Continuation Plan

The Company maintains a nonqualified supplemental retirement plan for its current President and its former President. The plan provides supplemental retirement benefits payable in installments over a period of years upon retirement or death. The recorded liability at September 30, 2023 and December 31, 2022 relating to this supplemental retirement plan was $717,000 and $660,000, respectively. The discount rate used to determine the Company’s obligation was 5.00%. The projected rate of salary increase for its current President was 3%. The expense of this salary retirement plan was $32,000 and $20,000 for the three months ended September 30, 2023 and 2022, respectively, and $99,000 and $61,000 for each of the nine months ended September 30, 2023 and 2022, respectively.

Directors Deferred Supplemental Retirement Plan

The Company has a supplemental retirement plan for eligible directors that provides for monthly benefits based upon years of service to the Company, subject to certain limitations as set forth in the agreements. The present value of these future payments is being accrued over the estimated period of service. The estimated liability at September 30, 2023 and December 31, 2022 relating to this plan was $563,000 and $537,000, respectively. The discount rate used to determine the Company’s obligation was 6.25% at September 30, 2023 and December 31, 2022. Total supplemental retirement plan expense amounted to $19,000 and $22,000 for the three months ended September 30, 2023 and 2022, respectively, and $57,000 and $54,000 for the nine months ended September 30, 2023 and 2022, respectively.

The Company enacted a “hard freeze” for this supplemental retirement plan as of January 1, 2022. On February 10, 2022, the Bank and the non-employee members of the board of directors of the Bank entered into amendments to the Supplemental Director Retirement Agreements (the “Agreements”) previously entered into by the Bank and the directors. The amendments eliminate the formula for determining the normal annual retirement benefit (previously “70% of Final Base Fee”) and replaces it with a fixed annual benefit of $20,000. The amendments also eliminate the formula for determining the benefit payable on a change in control (previously tied to the normal annual retirement formula with certain imputed increases in the Base Fee) and replacing it with a fixed amount equal to the present value of $200,000. The effect of the amendments is to eliminate the variable and increasing costs associated with the Agreements. Instead, since the normal annual retirement benefit is now a fixed amount, the future costs associated with the Agreements is now more predictable. It is the intention of the Bank that no new directors of the Bank would enter into similar agreements.

Additionally, the Company has a deferred director’s fee plan, which allows members of the board of directors to defer the receipt of fees that otherwise would be paid to them in cash. At September 30, 2023 and December 31, 2022, the total deferred directors' fees amounted to $675,000 and $553,000, respectively.

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Stock Based Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

9.Stock Based Compensation

Employee Stock Ownership Plan

The Company maintains the First Seacoast Bank Employee Stock Ownership Plan (“ESOP”) to provide eligible employees of the Company the opportunity to own Company stock. The ESOP is a tax-qualified retirement plan for the benefit of Company

employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal limits. The number of shares committed to be released per year through 2047 is 15,354.

The ESOP funded its purchase of 383,851 shares through a loan from the Company equal to 100% of the aggregate purchase price of the common stock. The ESOP trustee is repaying the loan principally through the Bank’s contributions to the ESOP over the remaining loan term that matures on December 31, 2047. At September 30, 2023 and December 31, 2022, the remaining principal balance on the ESOP debt was $4.3 million and $2.0 million, respectively.

Under applicable accounting requirements, the Company records compensation expense for the ESOP equal to fair market value of shares when they are committed to be released from the suspense account to participants’ accounts under the plan. Total compensation expense recognized in connection with the ESOP for the three months ended September 30, 2023 and 2022 was $29,000 and $32,000, respectively, and $100,000 and $94,000 for the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023 and December 31, 2022, total unearned compensation for the ESOP was $4.0 million and $1.9 million, respectively.

	September 30, 2023		December 31, 2022(1)
Shares held by the ESOP include the following:
Allocated		39,864		29,898
Committed to be allocated		11,517		9,966
Unallocated		372,334		159,451
Total		423,715		199,315

(1) Adjusted for conversion of First Seacoast Bancorp, Inc.

The fair value of unallocated shares was approximately $2.8 million and $1.8 million at September 30, 2023 and December 31, 2022, respectively.

Equity Incentive Plan

Effective May 27, 2021, the Company adopted the First Seacoast Bancorp 2021 Equity Incentive Plan (the “2021 Plan”). The Company’s stockholders approved the 2021 plan on that date. The 2021 Plan provides for the granting of incentive and non-statutory stock options to purchase shares of common stock and the granting of shares of restricted stock awards and restricted stock units.

The 2021 Plan authorizes the issuance or delivery to participants of up to 348,802 converted shares of common stock (adjusted for the second step conversion transaction). Of this number, the maximum number of shares of common stock that may be issued pursuant to the exercise of stock options is 249,144 shares (adjusted for the second step conversion transaction) and the maximum number of shares of common stock that may be issued as restricted stock awards or restricted stock units is 99,657 shares (adjusted for the second step conversion transaction). The exercise price of stock options may not be less than the fair market value on the date the stock option is granted. Further, stock options may not be granted with a term that is longer than 10 years.

On May 25, 2023, 249,144 incentive and non-statutory stock options to purchase shares of common stock were granted to directors for their services on the board of directors and certain members of management. As of December 31, 2022, no stock options had been granted. The Company estimates the grant date fair value of each option using the Black-Scholes option pricing model. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected life of the option, risk-free interest rates and expected dividend yields of the common stock. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated grant date fair value of each option is expensed as employee benefits expense ratably over the vesting period. The expense recognized for this equity incentive plan was $67,000 and $-0-, for the three months ended September 30, 2023 and 2022, respectively, which provided a tax benefit of $18,000 and $-0-, respectively. The expense recognized for the nine months ended September 30, 2023 and 2022 was $88,000 and $-0-, respectively, which provided a tax benefit of $24,000 and $-0-, respectively. At September 30, 2023, total unrecognized compensation expense for this equity incentive plan was $660,000 with a 2.7 year weighted average future recognition period.

A summary of stock options outstanding as of September 30, 2023 and changes during the nine months ended September 30, 2023 is presented below:

	September 30, 2023
	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)		Aggregate Intrinsic Value
Stock options:								(In Thousands)
Balance at beginning of period		—		$	—		—	$	—
Granted		249,144			8.06		9.7		—
Vested		—			—		—		—
Forfeited		—			—		—		—
Balance at end of period		249,144		$	8.06		9.7	$	—
Date of grant	5/25/2023
Options granted		249,144
Exercise price	$	8.06
Vesting period(1)	3 years
Expiration date	5/25/2033
Expected volatility		27.8	%
Expected term	6.5 years
Expected dividend yield		0	%
Expected forfeiture rate		0	%
Risk free interest rate		3.9	%
Fair value per option	$	3.00
(1) Vesting is ratably and the period begins on the date of the grant.

On June 1, 2023, 2,478 restricted stock awards were granted to a certain member of management at $7.99 per share. The total fair value related to the June 1, 2023 grant was $20,000. These restricted stock awards time-vest 50% as of November 18, 2023 and 50% as of November 18, 2024 and have been fair valued as of the date of grant. On November 18, 2021, 98,850 restricted stock awards were granted to directors and certain members of management at $11.95 per share (adjusted for the second step conversion transaction). The total fair value related to the November 18, 2021 grant was $1.2 million. These restricted stock awards time-vest over a three year period and have been fair valued as of the date of grant. The holders of restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting rights when granted and dividend rights when vested. A summary of non-vested restricted shares outstanding as of September 30, 2023 and December 31, 2022 and changes during the nine months ended September 30, 2023 and year ended December 31, 2022 is presented below:

	September 30, 2023
	Number of Shares		Weighted Average Grant Value
Restricted stock:
Non-vested at beginning of period		64,785	$	11.95
Granted		2,478		7.99
Vested		—		—
Forfeited		—		—
Non-vested at end of period		67,263	$	11.80

	December 31, 2022
	Number of Shares		Weighted Average Grant Value
Restricted stock:
Non-vested at beginning of period		98,850	$	11.95
Granted		—		—
Vested		(32,393)		11.95
Forfeited		(1,672)		11.95
Non-vested at end of period		64,785	$	11.95

The expense recognized for this equity incentive plan was $102,000 and $98,000, for the three months ended September 30, 2023 and 2022, respectively, and $298,000 and $295,000, for the nine months ended September 30, 2023 and 2022, respectively, which provided a tax benefit of $27,000, for each of the three months ended September 30, 2023 and 2022, and $80,000 and $77,000 for the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023 and December 31, 2022, total unrecognized compensation expense for this equity incentive plan was $452,000 and $729,000, respectively, with a 1.1 and 1.9 year weighted average future recognition period, respectively.

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Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

10.Leases

The Company is obligated under various lease agreements for one of its branch offices and certain equipment. These agreements are accounted for as operating leases and their terms expire between 2024 and 2031 and, in some instances, contain options to renew for periods of up to four years. The Company has no financing leases.

The Company adopted ASU 2016-02 – Leases (Topic 842)– on January 1, 2022 and began recognizing its operating leases on its consolidated balance sheet by recording a net lease liability, representing the Company’s legal obligation to make these lease payments, and a Right-Of-Use (“ROU”) asset, representing the Company’s legal right to use the leased assets. The Company, by policy, does not include renewal options for leases as part of its ROU asset and lease liabilities unless they are deemed reasonably certain to exercise. The Company does not have any sub-lease agreements.

The following table summarizes information related to the Company’s right-of-use asset and net lease liability:

	September 30, 2023
	Operating Leases		Balance Sheet Location
	(Dollars in thousands)
Right-of-use asset	$	612	Other Assets
Net lease liability		612	Other Liabilities
	December 31, 2022
	Operating Leases		Balance Sheet Location
	(Dollars in thousands)
Right-of-use asset	$	202	Other Assets
Net lease liability		202	Other Liabilities

The Company determines whether a contract contains a lease based on whether a contract, or a part of a contract, conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The discount rate is either implicit in the lease or, when a rate cannot be readily determined, the Company’s incremental borrowing rate is used. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term.

The components of operating lease cost and other related information are as follows:

	Three months ended September 30,
(Dollars in thousands)	2023			2022
Operating lease cost	$	16		$	10
Short-term lease cost		—			—
Variable lease cost (cost excluded from lease payments)		—			—
Sublease income		—			—
Total operating lease cost		16			10
Other Information:
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases		16			10
Operating lease - operating cash flows (liability reduction)	$	—		$	—
Weighted average lease term remaining (in years)		6.06			4.59
Weighted average discount rate		4.59	%		3.28	%
	Nine months ended September 30,
(Dollars in thousands)	2023			2022
Operating lease cost	$	38		$	42
Short-term lease cost		—			—
Variable lease cost (cost excluded from lease payments)		—			—
Sublease income		—			—
Total operating lease cost		38			42
Other Information:
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases		38			42
Operating lease - operating cash flows (liability reduction)	$	—		$	—
Weighted average lease term remaining (in years)		6.06			4.59
Weighted average discount rate		4.59	%		3.28	%

The total minimum lease payments due in future periods for lease agreements in effect at September 30, 2023 were as follows:

As of September 30, 2023	Future Minimum Lease Payments
	(Dollars in thousands)
Remainder of 2023	$	32
2024		125
2025		122
2026		120
2027		307
Total minimum lease payments		706
Less: interest		(94	)
Total lease liability	$	612

During the three months ended September 30, 2023 the Company completed a conversion of all of its branch ATMs from owned equipment to leased equipment and recognized a $2,000 loss on the disposition of all ATM-related equipment. The Company's obligation under the operating lease related to these ATMs expires in August 2030 and has future lease payments of $529,000 as of September 30, 2023. Total lease expense was $6,000 and $-0- for the three and nine months ended September 30, 2023 and 2022, respectively.

The Company's obligation under the operating lease related to one of its branches expires in August 2027 and has future lease payments of $161,000 as of September 30, 2023. Total lease expense was $9,000 and $8,000 for the three months ended September 30, 2023 and 2022, respectively, and $27,000 and $24,000 for the nine months ended September 30, 2023 and 2022, respectively. This lease agreement contains clauses calling for escalation of minimum lease payments contingent on increases in LIBOR, or a similar replacement index, and the consumer price index.

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Other Comprehensive Loss

9 Months Ended

Sep. 30, 2023

Disclosure Of Other Comprehensive Income Loss [Abstract]

Other Comprehensive Loss

11.Other Comprehensive Loss

The Company reports certain items as “other comprehensive income or loss” and reflects total accumulated other comprehensive loss (“AOCI”) in the consolidated financial statements for all periods containing elements of other comprehensive income or loss. The following table presents a reconciliation of the changes in the components of other comprehensive income or loss for the dates indicated, including the amount of income tax expense or benefit allocated to each component of other comprehensive income or loss:

	Three Months Ended September 30,
Reclassification Adjustments	2023			2022			Affected Line Item in Consolidated Statements of (Loss) Income
	(Dollars in thousands)
Gains on sale of securities available-for-sale	$	—		$	—		Securities gains, net
Tax effect		—			—		Income tax (benefit) expense
		—			—		Net (loss) income
Net amortization of bond premiums		222			264		Interest on debt securities
Tax effect		(60	)		(71	)	Income tax (benefit) expense
		162			193		Net (loss) income
Net interest expense on swaps		—			(41	)	Interest on borrowings
Tax effect		—			11		Income tax (benefit) expense
		—			(30	)	Net (loss) income
Total reclassification adjustments	$	162		$	163

	Nine Months Ended September 30,
Reclassification Adjustments	2023			2022			Affected Line Item in Consolidated Statements of (Loss) Income
	(Dollars in thousands)
Gains on sale of securities available-for-sale	$	—		$	(52	)	Securities gains, net
Tax effect		—			14		Income tax (benefit) expense
		—			(38	)	Net (loss) income
Net amortization of bond premiums		712			751		Interest on debt securities
Tax effect		(191	)		(203	)	Income tax (benefit) expense
		521			548		Net (loss) income
Gains on termination of interest rate swaps		(849	)		—		Gain on termination of interest rate swaps
Tax effect		230			—		Income tax (benefit) expense
		(619	)		—		Net (loss) income
Net interest expense on swaps		—			(34	)	Interest on borrowings
Tax effect		—			9		Income tax (benefit) expense
		—			(25	)	Net (loss) income
Total reclassification adjustments	$	(98	)	$	485

The following tables present the changes in each component of AOCI for the periods indicated:

(Dollars in thousands)	Net Unrealized (Losses) Gains on AFS Securities(1)			Net Unrealized Gains (Losses) on Cash Flow Hedges(1)			AOCI(1)
Balance at June 30, 2023	$	(9,922	)	$	—		$	(9,922	)
Other comprehensive loss before reclassification		(5,023	)		—			(5,023	)
Amounts reclassified from AOCI		162			—			162
Other comprehensive loss		(4,861	)		—			(4,861	)
Balance at September 30, 2023	$	(14,783	)	$	—		$	(14,783	)
Balance at June 30, 2022	$	(8,626	)	$	543		$	(8,083	)
Other comprehensive (loss) income before reclassification		(5,153	)		250			(4,903	)
Amounts reclassified from AOCI		193			(30	)		163
Other comprehensive (loss) income		(4,960	)		220			(4,740	)
Balance at September 30, 2022	$	(13,586	)	$	763		$	(12,823	)
Balance at December 31, 2022	$	(10,428	)	$	701		$	(9,727	)
Other comprehensive loss before reclassification		(4,876	)		(82	)		(4,958	)
Amounts reclassified from AOCI		521			(619	)		(98	)
Other comprehensive loss		(4,355	)		(701	)		(5,056	)
Balance at September 30, 2023	$	(14,783	)	$	—		$	(14,783	)
Balance at December 31, 2021	$	575		$	146		$	721
Other comprehensive (loss) income before reclassification		(14,671	)		642			(14,029	)
Amounts reclassified from AOCI		510			(25	)		485
Other comprehensive (loss) income		(14,161	)		617			(13,544	)
Balance at September 30, 2022	$	(13,586	)	$	763		$	(12,823	)

(1)All amounts are net of tax.

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Regulatory Matters

9 Months Ended

Sep. 30, 2023

Disclosure Of Regulatory Matters [Abstract]

Regulatory Matters

12.Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below). As of September 30, 2023, the most recent notification from the Office of the Comptroller of the Currency categorized the Bank, as well capitalized under the regulatory framework, for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum capital amounts and ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Management believes that, as of September 30, 2023 and December 31, 2022, the Bank met all capital adequacy requirements to which it was subject, including the capital conservation buffer, at those dates.

The following table presents actual and required capital ratios as of September 30, 2023 and December 31, 2022 for the Bank under the Basel Committee on Banking Supervisions capital guidelines for U.S. banks (“Basel III Capital Rules”) as fully phased-in on January 1, 2019. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

						Minimum Capital					Minimum Capital Required to be Well					Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer
	Actual					Requirement					Capitalized					Fully Phased-In
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2023
Total Capital (to risk-weighted assets)	$	65,432		17.92	%	$	29,203		8.00	%	$	36,504		10.00	%	$	38,329		10.50	%
Tier 1 Capital (to risk-weighted assets)		61,625		16.88			21,902		6.00			29,203		8.00			31,028		8.50
Tier 1 Capital (to average assets)		61,625		11.12			22,174		4.00			27,718		5.00			22,174		4.00
Common Equity Tier 1 (to risk-weighted assets)		61,625		16.88			16,427		4.50			23,727		6.50			25,552		7.00

						Minimum Capital					Minimum Capital Required to be Well					Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer
	Actual					Requirement					Capitalized					Fully Phased-In
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2022
Total Capital (to risk-weighted assets)	$	52,475		15.53	%	$	27,028		8.00	%	$	33,785		10.00	%	$	35,474		10.50	%
Tier 1 Capital (to risk-weighted assets)		48,821		14.45			20,271		6.00			27,028		8.00			28,717		8.50
Tier 1 Capital (to average assets)		48,821		9.20			21,224		4.00			26,530		5.00			21,224		4.00
Common Equity Tier 1 (to risk-weighted assets)		48,821		14.45			15,203		4.50			21,960		6.50			23,649		7.00

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Treasury Stock

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Treasury Stock

13.Treasury Stock

Common Stock Repurchases

On September 23, 2020, the board of directors of First Seacoast Bancorp (a federal corporation) authorized the repurchase of up to 114,403 shares of First Seacoast Bancorp's (a federal corporation) outstanding common stock (adjusted for the second step conversion transaction), which equals approximately 2.2% of all shares then outstanding and approximately 5.0% of the then outstanding shares owned by stockholders other than First Seacoast Bancorp, MHC. The Company holds repurchased shares in its treasury. As of December 31, 2022, First Seacoast Bancorp (a federal corporation) had repurchased all 114,403 shares authorized (adjusted for the second step conversion transaction).

Equity Incentive Plan

A certain member of management elected to surrender 496 shares (adjusted for the second step conversion transaction) of a vested restricted stock award on November 18, 2022 in lieu of a cash payment for the tax liabilities associated with the time-vesting of their award. The Company holds these shares in its treasury. As of September 30, 2023 and December 31, 2022, the Company held a total of 114,899 shares in its treasury (adjusted for the second step conversion transaction).

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

14.Derivatives and Hedging Activities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. These derivative financial instruments are reported at fair value in other assets or other liabilities and are not reported on a net basis.

Derivatives Designated as Hedging Instruments

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed rate payments or the receipt of fixed rate amounts from a counterparty in exchange for the Company making variable rate payments over the life of the agreements without exchange of the underlying notional amount.

The Company entered into two $5 million notional interest rate swaps that were designated as cash flow hedges on 90-day advances from FHLB. The purpose of these cash flow hedges was to reduce potential interest rate risk by swapping a variable rate borrowing to a fixed rate. Management deemed it prudent to limit the variability of these interest payments by entering into these interest rate swap agreements. These agreements provided for the Company to receive payments at a variable rate determined by a specific index (three-month LIBOR) in exchange for making payments at a fixed rate. Publication of LIBOR is expected to cease in December of 2024. The swap agreements allowed for substitution of an alternative reference rate such as the secured overnight financing rate (“SOFR”) at that time.

On January 17, 2023, the Company terminated both of its interest rate swap derivative instruments at a gain of $849,000. The Company recognized the change in fair value of these hedging instruments, previously accumulated in AOCI, as a gain on termination of interest rate swaps in its consolidated statement of (loss) income for the nine months ended September 30, 2023 as it was determined that it was probable that the hedged forecasted transaction - the variability in cash flows related to 90-day advances from the FHLB - would not occur by the end of the original maturity dates of the hedging instruments. The use of derivatives for debt hedging as part of the Company's overall interest rate risk management strategy has been infrequent as the Company has utilized other interest rate risk management activities to achieve similar business purposes. Also, $536,000 of cash posted to the counterparty as collateral on these interest rate swaps contracts was returned to the Company. The changes in the fair value of interest rate swaps were reported in other comprehensive loss and were subsequently reclassified into interest expense or income in the period that the hedged transactions affected earnings. The change in fair value for these derivative instruments for the three months ended September 30, 2023 and 2022, was $-0- and $302,000, respectively, and $(112,000) and $846,000 for the nine months ended September 30, 2023 and 2022, respectively. At December 31, 2022, the fair value of interest rate swap derivatives resulted in an asset of $961,000, and is recorded in other assets.

The following table summarizes the Company's cash flow hedges associated with its interest rate risk management activities:

				December 31, 2022
(Dollars in thousands)	Start Date	Maturity Date	Rate	Notional		Assets		Liabilities
Debt Hedging
Hedging Instruments:
Interest Rate Swap 2020	4/13/2020	4/13/2025	0.68%	$	5,000	$	431	$	—
Interest Rate Swap 2021	4/13/2021	4/13/2026	0.74%		5,000		530		—
Total Hedging Instruments				$	10,000	$	961	$	—
Hedged Items:
Variability in cash flows related to       90-day FHLB advances				N/A		$	—	$	10,000

The following tables summarize the effect of cash flow hedge accounting on the consolidated statements of (loss) income for the three and nine months ended September 30, 2023 and 2022 :

	Location and Amount of Gain or Loss Recognized in Consolidated Statements of (Loss) Income
	Three Months Ended September 30,
(Dollars in thousands)	2023				2022
	Interest Income (Expense)		Other Income (Expense)		Interest Income (Expense)		Other Income (Expense)
The effect of cash flow hedge accounting:
Amount reclassified from AOCI into expense	$	—	$	—	$	41	$	—

	Location and Amount of Gain or Loss Recognized in Consolidated Statements of (Loss) Income
	Nine Months Ended September 30,
(Dollars in thousands)	2023				2022
	Interest Income (Expense)		Other Income (Expense)		Interest Income (Expense)		Other Income (Expense)
The effect of cash flow hedge accounting:
Amount reclassified from AOCI into expense	$	—	$	—	$	34	$	—

The credit risk associated with these interest rate swaps was the risk of default by the counterparty. To minimize this risk, the Company only enters into interest rate swap agreements with highly rated counterparties that management believes to be creditworthy. The notional amounts of these agreements did not represent amounts exchanged by the parties and, therefore, was not a measure of the potential loss exposure. Risk management results for the three and nine months ended September 30, 2023 and 2022, related to the balance sheet hedging of $10.0 million of 90 day FHLB advances, included in borrowings, indicated that the hedge was 100% effective and there was no component of the derivative instruments’ unrealized gain or loss which was excluded from the assessment of hedge effectiveness. As of September 30, 2023 and December 31, 2022, the Company posted $-0- and $535,000, respectively, of cash to the counterparty as collateral on these interest rate swap contracts, which was presented within cash and due from banks on the consolidated balance sheets.

Fair Value Hedges of Interest Rate Risk

On June 5, 2023, the Company entered into an interest rate contract that was designated as a fair value hedge utilizing a pay fixed interest rate swap to hedge a portion of the residential mortgage loan portfolio's change in fair value attributable to the movement in the one-month SOFR. The Company is exposed to changes in the fair value of certain pools of fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. The Company's interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreement without the exchange of the underlying notional amount. The hedging strategy effectively converts these mortgage loans to SOFR floating rate loans for the term of the swap starting on the effective date.

For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income.

As of September 30, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:

Location in Consolidated Balance Sheets	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
(Dollars in thousands)	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Total loans	$	24,553	$	—	$	447	$	—
Total	$	24,553	$	—	$	447	$	—

These amounts include the amortized cost basis of closed portfolios of fixed-rate residential loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At inception, the amortized cost basis of the closed portfolios used in these hedging relationships was $63.7 million. The cumulative basis adjustments associated with these hedging relationships was $(447,000) and the notional amount of the designated hedged items were $25.0 million. Under the "portfolio layer" approach, the Company designated a $25.0 million notional amount of portfolio assets that are not expected to be affected by prepayments, defaults and other factors affecting the timing and amount of cash flows of the designated hedged layer. The Company had no fair value hedges at December 31, 2022. The notional amounts of these agreements do not represent amounts exchanged by the parties and, thus, are not a measure of potential loss exposure. At September 30, 2023, the Company’s fair value hedges had a remaining maturity of 2.67 years, an average pay fixed rate of 3.99% and an average received rate of 5.19%.

Derivatives not Designated as Hedging Instruments

Customer Loan Swaps

Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain commercial banking customers. On May 19, 2023, the Company entered into an interest rate swap with a commercial loan borrower. The Company executes interest rate swaps with customers to facilitate their respective risk management strategies. The interest rate swap contract with the commercial loan borrower allows them to convert floating-rate loan payments based on SOFR to fixed-rate loan payments. This interest rate swap is simultaneously hedged by an offsetting derivative that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet hedge accounting requirements, changes in the fair value of both the customer derivative and the offsetting derivative are recognized directly in earnings.

The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheet:

	Derivative Assets					Derivative Liabilities
	Notional Amount		Location	Fair Value		Notional Amount		Location	Fair Value
(Dollars in thousands)
September 30, 2023
Derivatives designated as
hedging instruments:
Interest rate contracts - fair value hedge	$	25,000	Other assets	$	447	$	—	Other liabilities	$	—
Total derivatives designated as
hedging instruments				$	447				$	—
Derivatives not designated as
hedging instruments:
Customer loan swaps	$	4,799	Other assets	$	158	$	4,799	Other liabilities	$	158
Total derivatives not designated as
hedging instruments				$	158				$	158
December 31, 2022
Derivatives designated as
hedging instruments:
Interest rate contracts - cash flow hedge	$	10,000	Other assets	$	961	$	—	Other liabilities	$	—
Total derivatives designated as
hedging instruments				$	961				$	—

The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the consolidated statements of (loss) income for the periods presented:

		Amount of (Loss) Gain Recognized in Income
		Three Months Ended					Nine Months Ended
		September 30, 2023			September 30, 2022		September 30, 2023		September 30, 2022
(Dollars in thousands)	Location of (Loss) Gain
Customer loan swaps	Interest and fees on loans	$	(12	)	$	—	$	83	$	—

Credit-risk-related Contingent Features

By entering into derivative transactions, the Company is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company’s credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty. The Company seeks to minimize counterparty credit risk through credit approvals, limits, and other monitoring procedures. Institutional counterparties must have an investment grade credit rating and be approved by the Company’s board of directors. As such, management believes the risk of incurring credit losses on derivative contracts with institutional counterparties is remote. As of September 30, 2023 and December 31, 2022, the Company posted $786,000 and $535,000, respectively, of cash to the counterparties as collateral on its interest rate swap contracts and customer loan swaps, which was presented within cash and due from banks on the consolidated balance sheets.

Balance Sheet Offsetting

Certain financial instruments may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. The Company’s derivative transactions with institutional counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Generally, the Company does not offset such financial instruments for financial reporting purposes.

The following tables present the information about derivative positions that are eligible for offset in the consolidated balance sheets as of September 30, 2023 and December 31, 2022:

							Gross Amounts Not Offset
(Dollars in thousands)	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Recognized		Financial Instruments Pledged (Received)		Cash Collateral Pledged (Received)(1)		Net Amount
September 30, 2023
Derivative Assets:
Interest rate contracts (2)	$	447	$	—	$	447	$	—	$	447	$	—
Customer loan swaps - commercial customer (3)		158		—		158		—		—		158
Total	$	605	$	—	$	605	$	—	$	447	$	158
Derivative Liabilities:
Customer loan swaps - dealer bank (3)	$	158	$	—	$	158	$	—	$	158	$	—
December 31, 2022
Derivative Assets:
Interest rate contracts (2)	$	961	$	—	$	961	$	—	$	535	$	426

(1) The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated balance sheets.

(2) Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement with the counterparty and settles collateral on a net basis for all contracts.

(3) The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. The Company does not post collateral to its commercial customers as part of its contract.

At September 30, 2023 and December 31, 2022, there were no derivatives in a net liability position related to these agreements.

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Fair Values of Assets and Liabilities

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Values of Assets and Liabilities

15.Fair Values of Assets and Liabilities

Determination of Fair Value

The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from one level to another. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value of cash flows or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded, and the observability and reliability of the assumptions used to determine fair value.

Level 1 - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 - Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 - Level 3 inputs are unobservable inputs for the asset or liability.

For assets and liabilities, fair value is based upon the lowest level of observable input that is significant to the fair value measurement.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market-based parameters. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and, therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented therein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all the Company’s financial assets and financial liabilities carried at fair value at September 30, 2023 and December 31, 2022.

Financial Assets and Financial Liabilities: Financial assets and financial liabilities measured at fair value on a recurring basis include the following:

Securities Available-for-Sale: The Company’s investment in U.S. Government-sponsored entities bonds, U.S Government agency small business administration pools guaranteed by the SBA, collateralized mortgage obligations issued by the FHLMC, residential mortgage-backed securities and other municipal bonds is generally classified within Level 2 of the fair value hierarchy. For these securities, the Company obtains fair value measurements from independent pricing services. The fair value measurements consider observable data that may include reported trades, dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions.

Mortgage Servicing Rights: Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes interest rate, prepayment speed and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (see Note 4, Loan Servicing, for more information). These assumptions are inherently sensitive to change as these unobservable inputs are not based on quoted prices in active markets or otherwise observable.

Derivative Instruments and Hedges: The valuation of these instruments is determined using the discounted cash flow method on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities.

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
September 30, 2023
Securities available-for-sale:
U.S. Government-sponsored enterprises obligations	$	1,769	$	—	$	1,769	$	—
U.S Government agency small business administration    pools guaranteed by the SBA		7,244		—		7,244		—
Collateralized mortgage obligations issued by    the FHLMC, FNMA and GNMA		5,592		—		5,592		—
Residential mortgage-backed-securities		20,732		—		20,732		—
Municipal bonds		59,642		—		59,642		—
Corporate debt		486		—		486		—
Corporate subordinated debt		7,087		—		7,087		—
Other assets:
Mortgage servicing rights		338		—		—		338
Derivatives		605		—		605		—
Other liabilities:
Derivatives		158		—		158		—

	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
December 31, 2022
Securities available-for-sale:
U.S. Government-sponsored enterprises obligations	$	1,826	$	—	$	1,826	$	—
U.S Government agency small business administration    pools guaranteed by the SBA		8,359		—		8,359		—
Collateralized mortgage obligations issued by    the FHLMC, FNMA and GNMA		6,222		—		6,222		—
Residential mortgage-backed-securities		21,823		—		21,823		—
Municipal bonds		62,416		—		62,416		—
Corporate debt		497		—		497		—
Corporate subordinated debt		4,957		—		4,957		—
Other assets:
Mortgage servicing rights	$	357		—		—		357
Derivatives		961		—		961		—

For the nine months ended September 30, 2023 and 2022, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:

(Dollars in thousands)	Mortgage Servicing Rights (1)
Balance as of January 1, 2023	$	357
Included in net (loss) income		(19	)
Balance as of September 30, 2023	$	338
Total unrealized net gains (losses) included in net income related to assets still held as of September 30, 2023	$	—
Balance as of January 1, 2022	$	322
Included in net (loss) income		47
Balance as of September 30, 2022	$	369
Total unrealized net gains (losses) included in net income related to assets still held as of September 30, 2022	$	—

(1)Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of (loss) income.

For Level 3 assets measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

	September 30, 2023
(Dollars in thousands)	Valuation Technique	Description	Range	Weighted Average (1)	Fair Value
Mortgage Servicing Rights	Discounted Cash Flow	Prepayment Rate	5.66% - 13.52%	6.70%	$	338
		Discount Rate	10.13% - 10.13%	10.13%
		Delinquency Rate	1.90% - 2.48%	2.00%
		Default Rate	0.14% - 0.18%	0.15%

	December 31, 2022
(Dollars in thousands)	Valuation Technique	Description	Range	Weighted Average (1)	Fair Value
Mortgage Servicing Rights	Discounted Cash Flow	Prepayment Rate	6.48% - 23.49%	7.78%	$	357
		Discount Rate	9.50% - 9.50%	9.50%
		Delinquency Rate	2.13% - 2.79%	2.24%
		Default Rate	0.14% - 0.20%	0.15%

(1)Unobservable inputs for mortgage servicing rights were weighted by loan amount.

The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights are the weighted-average prepayment rate, weighted-average discount rate, weighted average delinquency rate and weighted-average default rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the prepayment rate and the discount rate are not directly interrelated, they generally move in opposite directions of each other.

The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. Observable and unobservable inputs are entered into this model as prescribed by an independent third party to arrive at an estimated fair value. See Note 4, Loan Servicing, for a roll forward of our Level 3 item and related inputs used to determine fair value at September 30, 2023.

Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring basis during the reported periods may include certain individually evaluated loans reported at the fair value of the underlying collateral. Fair value is measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, real estate collateral related nonrecurring fair value measurement adjustments have generally been classified as Level 3.

Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. Financial assets measured at fair value on a non-recurring basis during the reported periods also include loans held for sale. Residential mortgage loans held for sale are recorded at the lower of cost or fair value and are therefore measured at fair value on a non-recurring basis. The fair values for loans held for sale are estimated based on commitments in effect from investors or prevailing market prices for loans with similar terms to borrowers of similar credit quality and are included in Level 3. At September 30, 2023 and December 31, 2022, there were no assets or liabilities measured at fair value on a non-recurring basis.

Non-Financial Assets and Non-Financial Liabilities: The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Non-financial assets measured at fair value on a non-recurring basis generally include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, are remeasured at fair value through a write-down included in other non-interest expense. There were no foreclosed assets at September 30, 2023 or December 31, 2022.

ASC Topic 825,“Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. ASU 2016-01 requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The exit price notion is a market-based measurement of fair value that is represented by the price to sell an asset or transfer a liability in the principal market (or most advantageous market in the absence of a principal market) on the measurement date. At September 30, 2023 and December 31, 2022, fair values of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors.

Summary of Fair Values of Financial Instruments not Carried at Fair Value

The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments at September 30, 2023 and December 31, 2022 are as follows:

(Dollars in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2023
Financial Assets:
Cash and due from banks	$	7,168	$	7,168	$	7,168	$	—	$	—
Federal Home Loan Bank stock		1,972		1,972		—		1,972		—
Bank-owned life insurance		4,642		4,642		—		4,642		—
Loans, net		424,136		372,797		—		—		372,797
Accrued interest receivable		2,130		2,130		2,130		—		—
Financial Liabilities:
Deposits	$	411,785	$	409,866	$	327,029	$	82,837	$	—
Advances from Federal Home Loan Bank		44,877		44,435		—		44,435		—
Advances from Federal Reserve Bank		25,000		25,024		—		25,024		—
Mortgagors’ tax escrow		2,381		2,381		—		2,381		—
Accrued interest payable		509		509		509		—		—
December 31, 2022
Financial Assets:
Cash and due from banks	$	8,250	$	8,250	$	8,250	$	—	$	—
Interest-bearing time deposits with other banks		747		747		—		747		—
Federal Home Loan Bank stock		3,502		3,502		—		3,502		—
Bank-owned life insurance		4,561		4,561		—		4,561		—
Loans, net		398,924		361,402		—		—		361,402
Accrued interest receivable		1,988		1,988		1,988		—		—
Financial Liabilities:
Deposits	$	382,363	$	379,714	$	320,624	$	59,090	$	—
Advances from Federal Home Loan Bank		99,397		97,675		—		97,675		—
Mortgagors’ tax escrow		938		938		—		938		—
Accrued interest payable		95		95		95		—		—

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Subsequent Events

9 Months Ended

Sep. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

16.Subsequent Events

During October 2023, the Company purchased $25.0 million of securities available-for-sale. These purchases consisted of $5.0 million of floating rate U.S. Government agency small business administration pools guaranteed by SBA, $10.0 million of residential mortgage-backed securities and $10.0 million of municipal bonds. The average yield for these investment purchases is expected to be approximately 6.37%.

On October 31, 2023, the Company agreed to a contract extension with its core technology provider, FISERV. The new agreement expires on April 30, 2032, with an unconditional option to exit the agreement in April 2028 and includes lower pricing for transaction and processing services that become effective immediately.

On November 1, 2023, the Company borrowed $25.0 million from the FHLB at a rate of 4.48%, which is callable by the FHLB on May 1, 2024 and quarterly thereafter.

On November 1, 2023, the Company entered into an interest rate contract with a notional amount of $25.0 million that was designated as a fair value hedge utilizing a pay fixed interest rate swap to hedge a portion of the residential mortgage loan portfolio's change in fair value attributable to the movement in the one-month SOFR. This fair value hedge has a maturity of 3 years, a pay fixed rate of 4.67% and a receive rate, as of November 1, 2023, of 5.31%.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim consolidated financial information, general practices within the banking industry and with instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all the information or footnotes required by U.S. GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of these consolidated financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results which may be expected for the entire year. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 24, 2023.

Corporate Structure

Corporate Structure

On January 19, 2023, the conversion of First Seacoast Bancorp, MHC from mutual to stock form and the related stock offering by First Seacoast Bancorp, Inc., the new holding company for First Seacoast Bank, was completed. As a result, both First Seacoast Bancorp, MHC and First Seacoast Bancorp (a federal corporation) ceased to exist. First Seacoast Bancorp, Inc.’s common stock began trading on the Nasdaq Capital Market under the trading symbol “FSEA” on January 20, 2023. As a result of the subscription offering, the community offering and the syndicated community offering, First Seacoast Bancorp, Inc. sold a total of 2,805,000 shares of its common stock at a price of $10.00 per share, which includes 224,400 shares sold to First Seacoast Bank’s Employee Stock Ownership Plan. As part of the conversion transaction, each outstanding share of First Seacoast Bancorp (a federal corporation) common stock owned by the public stockholders of First Seacoast Bancorp (a federal corporation) (stockholders other than First Seacoast Bancorp, MHC) as of the closing date was converted into shares of First Seacoast Bancorp, Inc. common stock based on an exchange ratio of 0.8358 shares of First Seacoast Bancorp, Inc. common stock for each share of First Seacoast Bancorp (a federal corporation) common stock.

The Bank offers a full range of banking and wealth management services to its customers. The Bank focuses on four core services that center around customer needs. The core services include residential lending, commercial banking, personal banking and wealth management. The Bank offers a full range of commercial and consumer banking services through its network of five full-service branch locations.

The Bank is engaged principally in the business of attracting deposits from the public and investing those funds in various types of loans, including residential and commercial real estate loans, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities. Deposits at the Bank are insured by the Federal Deposit Insurance Corporation (“FDIC”) for the maximum amount permitted by law.

The Company has one reportable segment, “Banking Services.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and other borrowings and manage interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit.

Investment management services are offered through FSB Wealth Management. FSB Wealth Management is a division of First Seacoast Bank. The division currently consists of two financial advisors who are located in Dover, New Hampshire. FSB Wealth Management provides access to non-FDIC insured products that include retirement planning, portfolio management, investment and insurance strategies, business retirement plans and college planning to individuals throughout our primary market area. These investments and services are offered through a third-party registered broker-dealer and investment advisor. FSB Wealth Management receives fees from advisory services and commissions on individual investment and insurance products purchased by clients. The assets held for wealth management customers are not assets of the Company and, accordingly, are not reflected in the Company’s consolidated balance sheets.

On August 17, 2021, the Bank entered into a definitive agreement with an investment advisory and wealth management firm (the “seller”) to purchase certain of its client accounts and client relationships for a final adjusted purchase price of $324,000 which is included in other assets at September 30, 2023. The client accounts purchased are recorded as a customer list intangible asset. Identifiable intangible assets that are subject to amortization will be reviewed for impairment, at least annually, based on their fair value. Any impairment will be recognized as a charge to earnings and the adjusted carrying amount of the intangible asset will become its new accounting basis. The remaining useful life of the intangible asset will also be evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company is amortizing the customer list intangible on a straight-line basis over a ten-year period. During the three months ended September 30, 2023 and 2022, $8,000 and $9,000 of amortization expense was recorded in other expense, respectively. During the nine months ended September 30, 2023 and 2022, $22,000 and $27,000 of amortization expense was recorded in other expense, respectively.

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards without an extended transition period. As of September 30, 2023, there was no significant difference in the comparability of the Company’s consolidated financial statements as a result of this extended transition period. The Company’s status as an “emerging growth company” will end on the earlier of: (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering (which will be December 31, 2024 for the Company); (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates).

In March 2022, the FASB issued ASU 2022-2,“Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the troubled debt restructuring (“TDR”) accounting model for creditors that have adopted Topic 326, “Financial Instruments – Credit Losses.” All other creditors must continue to apply the TDR accounting model until they adopt ASU 2016-13,“Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Due to the removal of the TDR accounting model, all loan modifications are accounted for under the general loan modification guidance in Subtopic 310-20. In addition, on a prospective basis, entities are subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements also are required to prospectively disclose current-period gross write-off information by vintage (that is, year of origination). This ASU becomes effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” to increase stakeholder awareness of the improvements made to the various amendments to Topic 326 and to clarify certain areas of guidance as companies transition to the new standard. Also during November 2019, the FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates,” finalizing various effective date deferrals for private companies, not-for-profit organizations and certain smaller reporting companies applying the credit losses (CECL), leases and hedging standards. The effective date for ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” is deferred to years beginning after December 15, 2022. The effective dates for ASU 2016-02, “Leases (Topic 842)” was deferred to fiscal years beginning after December 15, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

In April 2019, the FASB issued ASU 2019-04,“Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” to increase stakeholders’ awareness of the amendments and to expedite improvements to the Codification. In May 2019, the FASB issued ASU 2019-05,“Financial Instruments—Credit Losses, Topic 326.” This ASU addresses certain stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. On October 16, 2019, the FASB approved a proposal to delay the implementation of this standard for smaller reporting companies to years beginning after December 15, 2022. Early adoption was permitted. See the next paragraph for further discussion regarding the implementation of this standard.

In June 2016, the FASB issued ASU 2016-13,“Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which creates a new credit impairment standard for financial assets measured at amortized cost and available-for-sale debt securities. The ASU requires financial assets measured at amortized cost (including loans and held-to-maturity debt securities) to be presented at the net amount expected to be collected, through an allowance for credit losses that are expected to occur over the remaining life of the asset, rather than incurred losses. The ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a direct write-down. The measurement of credit losses for newly recognized financial assets (other than certain purchased assets) and subsequent changes in the allowance for credit losses are recorded in the statement of (loss) income as the amounts expected to be collected change. The ASU was originally to be effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. In November 2018, the FASB issued ASU 2018-19,“Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” extending the implementation date by one year for smaller reporting companies and clarifying that operating lease receivables are outside the scope of Accounting. In November, 2019, the FASB issued ASU 2019-10, which delayed the effective date for ASU 2016-13 for smaller reporting companies, resulting in ASU 2016-13 becoming effective in the first quarter of 2023 for the Company. The ASU requires the measurement of all expected credit losses for loans held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, the ASU requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today are still permitted, though the inputs to those techniques have changed to reflect the full amount of expected credit losses. The Company has selected a loss estimation methodology which utilizes a third-party software application. The Company has recorded the effect of implementing this ASU using a modified-retrospective approach through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which the ASU was effective, which was January 1, 2023. The adoption of the new standard resulted in a decrease to its allowance for credit losses on loans (“ACL”). This decrease, though, was offset by an increase in the allowance for credit losses on off-balance sheet ("OBS") commitments that are not unconditionally cancelable. The decrease in ACL was due to a reduced emphasis on qualitative factors under the CECL model as the underlying historical loss data of the selected peer group is much more robust with broader time horizons as compared to the Company's actual historical loss data used under an incurred loss methodology. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements (see below and Note 3, Loans, for more information).

January 1, 2023 CECL Transition (Day 1) Impact

The CECL methodology reflects the Company's view of the state of the economy and forecasted macroeconomic conditions and their impact on the Company's loan portfolio as of the adoption date.

The following table illustrates the impact of the adoption of ASU 2016-13:

	January 1, 2023
	As reported under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
	(Dollars in thousands)
ASSETS
Allowance for credit losses on loans:
Commercial real estate (CRE)	$	788	$	942	$	(154	)
Multifamily (MF)		55		54		1
Commercial and industrial (C+I)		273		184		89
Acquisition, development, and land (ADL)		120		138		(18	)
1-4 family residential (RES)		1,847		2,048		(201	)
Home equity line of credit (HELOC)		88		81		7
Consumer (CON)		114		100		14
Unallocated		1		34		(33	)
Allowance for credit losses on loans	$	3,286	$	3,581		(295	)
LIABILITIES
Allowance for credit losses on OBS credit exposures	$	308	$	18	$	290

Recent Accounting Pronouncements Yet to be Adopted

Recent Accounting Pronouncements Yet To Be Adopted

The Company considers the applicability and impact of all ASUs. Recent accounting pronouncements issued by the FASB not listed below did not have, or are not expected to have, a material impact on the Company's present or future consolidated financial statements.

In January 2021, the FASB issued ASU 2021-1, “Reference Rate Reform (Topic 848) (Scope),” which clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting applied to derivatives that are affected by the discounting transition. This ASU was to become effective immediately for all entities on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The effective date was extended by the issuance of

ASU No. 2022-06, “Reference Rate Reform (Topic 848),” which, as noted above, defers the sunset date of Topic 848 from December 2022 to December 2024. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Summary of impact of the adoption

The following table illustrates the impact of the adoption of ASU 2016-13:

	January 1, 2023
	As reported under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
	(Dollars in thousands)
ASSETS
Allowance for credit losses on loans:
Commercial real estate (CRE)	$	788	$	942	$	(154	)
Multifamily (MF)		55		54		1
Commercial and industrial (C+I)		273		184		89
Acquisition, development, and land (ADL)		120		138		(18	)
1-4 family residential (RES)		1,847		2,048		(201	)
Home equity line of credit (HELOC)		88		81		7
Consumer (CON)		114		100		14
Unallocated		1		34		(33	)
Allowance for credit losses on loans	$	3,286	$	3,581		(295	)
LIABILITIES
Allowance for credit losses on OBS credit exposures	$	308	$	18	$	290

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Securities Available-for-Sale (Tables)

9 Months Ended

Sep. 30, 2023

Debt Securities, Available-for-Sale [Abstract]

Schedule of amortized cost and fair value of securities available-for-sale

The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses for which an allowance for credit losses has not been recorded, are as follows as of September 30, 2023 and December 31, 2022:

	September 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. Government-sponsored enterprises obligations	$	2,172	$	—	$	(403	)	$	1,769
U.S. Government agency small business administration    pools guaranteed by SBA		8,625		—		(1,381	)		7,244
Collateralized mortgage obligations issued by the    FHLMC, FNMA and GNMA		6,401		—		(809	)		5,592
Residential mortgage-backed securities		26,202		—		(5,470	)		20,732
Municipal bonds		70,645		—		(11,003	)		59,642
Corporate debt		500		—		(14	)		486
Corporate subordinated debt		8,237		—		(1,150	)		7,087
	$	122,782	$	—	$	(20,230	)	$	102,552
	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. Government-sponsored enterprises obligations	$	2,191	$	—	$	(365	)	$	1,826
U.S. Government agency small business administration    pools guaranteed by SBA		9,475		—		(1,116	)		8,359
Collateralized mortgage obligations issued by the    FHLMC, FNMA and GNMA		6,922		8		(708	)		6,222
Residential mortgage-backed securities		26,390		—		(4,567	)		21,823
Municipal bonds		69,373		172		(7,129	)		62,416
Corporate debt		500		—		(3	)		497
Corporate subordinated debt		5,550		—		(593	)		4,957
	$	120,401	$	180	$	(14,481	)	$	106,100

Schedule of amortized cost and fair values of securities available-for-sale by contractual maturity

The amortized cost and fair values of securities available-for-sale at September 30, 2023 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2023
	Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years		2,234		1,410
Due after five years through ten years		9,988		7,962
Due after ten years		69,332		59,612
Total U.S. Government-sponsored enterprises obligations,    municipal bonds, corporate debt and corporate subordinated debt		81,554		68,984
U.S. Government agency small business pools guaranteed    by SBA(1)		8,625		7,244
Collateralized mortgage obligations issued by the FHLMC,    FNMA, and GNMA(1)		6,401		5,592
Residential mortgage-backed securities(1)		26,202		20,732
Total	$	122,782	$	102,552

(1) Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans.

Summary of gross unrealized losses and fair value for those investments with unrealized losses

The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at September 30, 2023 and December 31, 2022.

	Less than 12 Months							More than 12 Months							Total
	Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in thousands)
September 30, 2023
U.S. Government sponsored    enterprises obligations		—	$	—	$	—			4	$	1,769	$	(403	)	$	1,769	$	(403	)
U.S. Government agency small    business administration pools    guaranteed by SBA		—		—		—			11		7,244		(1,381	)		7,244		(1,381	)
Collateralized mortgage    obligations issued by    the FHLMC, FNMA    and GNMA		1		906		(21	)		9		4,686		(788	)		5,592		(809	)
Residential mortgage    backed securities		3		2,228		(94	)		31		18,504		(5,376	)		20,732		(5,470	)
Municipal bonds		20		14,151		(968	)		85		45,491		(10,035	)		59,642		(11,003	)
Corporate debt		1		486		(14	)		—		—		—			486		(14	)
Corporate subordinated debt		3		3,082		(120	)		4		4,005		(1,030	)		7,087		(1,150	)
		28	$	20,853	$	(1,217	)		144	$	81,699	$	(19,013	)	$	102,552	$	(20,230	)
December 31, 2022
U.S. Government sponsored    enterprises obligations		1	$	453	$	(43	)		3	$	1,373	$	(322	)	$	1,826	$	(365	)
U.S. Government agency small    business administration pools    guaranteed by SBA		8		5,947		(602	)		3		2,412		(514	)		8,359		(1,116	)
Collateralized mortgage    obligations issued by    the FHLMC, FNMA    and GNMA		5		3,212		(209	)		4		2,016		(499	)		5,228		(708	)
Residential mortgage    backed securities		8		4,239		(503	)		23		16,649		(4,064	)		20,888		(4,567	)
Municipal bonds		86		49,228		(5,900	)		8		5,769		(1,229	)		54,997		(7,129	)
Corporate debt		1		497		(3	)		—		—		—			497		(3	)
Corporate subordinated debt		4		4,457		(593	)		—		—		—			4,457		(593	)
		113	$	68,033	$	(7,853	)		41	$	28,219	$	(6,628	)	$	96,252	$	(14,481	)

Summary of sales proceeds, principal payments received and gross realized gains and losses on available for sale securities

Proceeds from sales, maturities, principal payments received and gross realized gains and losses on securities available-for-sale were as follows for the three and nine months ended September 30, 2023 and 2022:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(Dollars in thousands)
Proceeds from sales, maturities and principal payments      received on securities available-for-sale	$	1,450	$	1,545	$	3,661	$	4,087
Gross realized gains		—		—		—		52
Gross realized losses		—		—		—		—
Net realized gains	$	—	$	—	$	—	$	52

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Loans and Allowance for Credit Losses on Loans (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans consisted of the following at September 30, 2023 and December 31, 2022:

	September 30, 2023			December 31, 2022
	(Dollars in thousands)
Commercial real estate (CRE)	$	87,295		$	80,506
Multifamily (MF)		7,679			8,185
Commercial and industrial (C+I)		24,875			24,059
Acquisition, development, and land (ADL)		19,255			18,490
1-4 family residential (RES)		264,477			251,466
Home equity line of credit (HELOC)		12,614			10,161
Consumer (CON)		8,610			7,189
Total loans		424,805			400,056
Net deferred loan costs		2,680			2,449
Allowance for credit losses on loans		(3,349	)		(3,581	)
Total loans, net	$	424,136		$	398,924

Schedule of Allowance For Loans And Leases Receivable Classification

Changes in the ACL for the three and nine months ended September 30, 2023, under the CECL model, by portfolio segment, are summarized as follows:

(Dollars in thousands)	CRE			MF		C+I		ADL			RES			HELOC		CON			Unallocated			Total
Balance, June 30, 2023	$	806		$	49	$	277	$	70		$	1,910		$	85	$	109		$	13		$	3,319
Provision for credit losses on loans		(18	)		22		11		31			(174	)		76		95			(13	)		30
Charge-offs		—			—		—		—			—			—		—			—			—
Recoveries		—			—		—		—			—			—		—			—			—
Balance, September 30, 2023	$	788		$	71	$	288	$	101		$	1,736		$	161	$	204		$	—		$	3,349
Balance, December 31, 2022, Prior to Adoption of ASC 326	$	942		$	54	$	184	$	138		$	2,048		$	81	$	100		$	34		$	3,581
Impact of adopting ASC 326		(154	)		1		89		(18	)		(202	)		7		14			(32	)		(295	)
Provision for credit losses on loans		—			16		15		(19	)		(110	)		73		92			(2	)		65
Charge-offs		—			—		—		—			—			—		(4	)		—			(4	)
Recoveries		—			—		—		—			—			—		2			—			2
Balance, September 30, 2023	$	788		$	71	$	288	$	101		$	1,736		$	161	$	204		$	—		$	3,349

Changes in the allowance for credit losses on loans for the three and nine months ended September 30, 2022, under the incurred loss model, by portfolio segment, are summarized as follows:

(Dollars in thousands)	CRE			MF			C+I			ADL			RES			HELOC		CON			Unallocated		Total
Balance, June 30, 2022	$	1,019		$	57		$	208		$	110		$	2,025		$	87	$	111		$	27	$	3,644
Provision for loan losses		(75	)		(1	)		(11	)		16			24			4		(18	)		1		(60	)
Charge-offs		—			—			—			—			—			—		—			—		—
Recoveries		—			—			—			—			—			—		—			—		—
Balance, September 30, 2022	$	944		$	56		$	197		$	126		$	2,049		$	91	$	93		$	28	$	3,584
Balance, December 31, 2021	$	833		$	80		$	194		$	178		$	2,139		$	63	$	75		$	28	$	3,590
Provision for loan losses		111			(24	)		2			(52	)		(90	)		28		25			—		—
Charge-offs		—			—			—			—			—			—		(9	)		—		(9	)
Recoveries		—			—			1			—			—			—		2			—		3
Balance, September 30, 2022	$	944		$	56		$	197		$	126		$	2,049		$	91	$	93		$	28	$	3,584

As of September 30, 2023 and December 31, 2022, information about loans, the ACL and the ALL, by portfolio segment, are summarized below:

(Dollars in thousands)	CRE		MF		C+I		ADL		RES		HELOC		CON		Unallocated		Total
September 30, 2023 Loan Balances
Individually evaluated to determine expected credit losses	$	—	$	—	$	—	$	—	$	184	$	—	$	—	$	—	$	184
Collectively evaluated to determine expected credit losses		87,295		7,679		24,875		19,255		264,293		12,614		8,610		—		424,621
Total	$	87,295	$	7,679	$	24,875	$	19,255	$	264,477	$	12,614	$	8,610	$	—	$	424,805
ACL related to the loans
Individually evaluated to determine expected credit losses	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated to determine expected credit losses		788		71		288		101		1,736		161		204		—		3,349
Total	$	788	$	71	$	288	$	101	$	1,736	$	161	$	204	$	—	$	3,349
December 31, 2022 Loan Balances
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	273	$	—	$	5	$	—	$	278
Collectively evaluated for impairment		80,506		8,185		24,059		18,490		251,193		10,161		7,184		—		399,778
Total	$	80,506	$	8,185	$	24,059	$	18,490	$	251,466	$	10,161	$	7,189	$	—	$	400,056
ALL related to the loans
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		942		54		184		138		2,048		81		100		34		3,581
Total	$	942	$	54	$	184	$	138	$	2,048	$	81	$	100	$	34	$	3,581

Past Due Financing Receivables

The following is an aging analysis of past due loans by portfolio segment as of September 30, 2023, including non-accrual loans without an ACL:

(Dollars in thousands)	30-59 Days		60-89 Days		90 + Days		Total Past Due		Current		Total Loans		Non-Accrual Loans
CRE	$	—	$	—	$	—	$	—	$	87,295	$	87,295	$	—
MF		—		—		—		—		7,679		7,679		—
C+I		—		—		—		—		24,875		24,875		—
ADL		—		—		—		—		19,255		19,255		—
RES		—		—		—		—		264,477		264,477		—
HELOC		—		—		—		—		12,614		12,614		—
CON		—		—		—		—		8,610		8,610		—
	$	—	$	—	$	—	$	—	$	424,805	$	424,805	$	—

The following is an aging analysis of past due loans by portfolio segment as of December 31, 2022:

(Dollars in thousands)	30-59 Days		60-89 Days		90 + Days		Total Past Due		Current		Total Loans		Non- Accrual Loans
CRE	$	—	$	—	$	—	$	—	$	80,506	$	80,506	$	—
MF		—		—		—		—		8,185		8,185		—
C+I		—		—		—		—		24,059		24,059		—
ADL		—		—		—		—		18,490		18,490		—
RES		—		84		—		84		251,382		251,466		84
HELOC		5		—		—		5		10,156		10,161		—
CON		7		—		—		7		7,181		7,189		5
	$	12	$	84	$	—	$	96	$	399,960	$	400,056	$	89

Impaired Financing Receivables

The following table provides information on impaired loans as of and for the year ended December 31, 2022:

	As of December 31, 2022						At December 31, 2022
(Dollars in thousands)	Recorded Carrying Value		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
CRE	$	—	$	—	$	—	$	—	$	—
MF		—		—		—		—		—
C+I		—		—		—		—		—
ADL		—		—		—		—		—
RES		273		273		—		446		32
HELOC		—		—		—		57		3
CON		5		5		—		2		—
Total	$	278	$	278	$	—	$	505	$	35

Schedule of risk category of loans by portfolio segment by vintage under CECL methodology

Based upon the most recent analysis performed, the risk category of loans by portfolio segment by vintage, reported under the CECL methodology, was as follows as of September 30, 2023:

(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
CRE:
Risk rating:
Pass	$	9,756	$	10,257	$	8,123	$	2,821	$	4,849	$	17,307	$	34,182	$	—	$	87,295
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total CRE		9,756		10,257		8,123		2,821		4,849		17,307		34,182		—		87,295
MF:
Risk rating:
Pass		—		148		5,201		1,093		—		875		362		—		7,679
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total MF		—		148		5,201		1,093		—		875		362		—		7,679
C+I:
Risk rating:
Pass		2,813		6,928		4,363		3,006		1,635		2,255		3,875		—		24,875
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total C+I		2,813		6,928		4,363		3,006		1,635		2,255		3,875		—		24,875
ADL:
Risk rating:
Pass		11,077		6,050		1,507		—		—		621		—		—		19,255
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total ADL		11,077		6,050		1,507		—		—		621		—		—		19,255
RES:
Risk rating:
Pass		12,513		41,831		64,656		52,469		20,150		72,858		—		—		264,477
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total RES		12,513		41,831		64,656		52,469		20,150		72,858		—		—		264,477
HELOC:
Risk rating:
Pass		—		—		—		—		—		—		12,614		—		12,614
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total HELOC		—		—		—		—		—		—		12,614		—		12,614
CON:
Risk rating:
Pass		2,157		2,466		1,956		1,534		271		226		—		—		8,610
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total CON		2,157		2,466		1,956		1,534		271		226		—		—		8,610
Total	$	38,316	$	67,680	$	85,806	$	60,923	$	26,905	$	94,142	$	51,033	$	—	$	424,805

Financing Receivable Credit Quality Indicators

The following presents the internal risk rating of loans by portfolio segment as of December 31, 2022:

(Dollars in thousands)	Pass		Special Mention		Substandard		Total
CRE	$	77,820	$	2,686	$	—	$	80,506
MF		8,185		—		—		8,185
C+I		24,059		—		—		24,059
ADL		18,490		—		—		18,490
RES		251,382		—		84		251,466
HELOC		10,161		—		—		10,161
CON		7,184		—		5		7,189
Total	$	397,281	$	2,686	$	89	$	400,056

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Loan Servicing (Tables)

9 Months Ended

Sep. 30, 2023

Transfers and Servicing [Abstract]

Schedule of Servicing Assets at Fair Value

The following summarizes activity in mortgage servicing rights for the three and nine months ended September 30, 2023 and 2022:

(Dollars in thousands)	2023			2022
Balance, June 30,	$	350		$	364
Additions		—			1
Payoffs		(2	)		(6	)
Change in fair value due to change in assumptions		(10	)		10
Balance, September 30,		338			369
Balance, January 1,		357			322
Additions		—			6
Payoffs		(5	)		(24	)
Change in fair value due to change in assumptions		(14	)		65
Balance, September 30,	$	338		$	369

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Deposits (Tables)

9 Months Ended

Sep. 30, 2023

Deposits [Abstract]

Deposit Liabilities

Deposits consisted of the following at September 30, 2023 and December 31, 2022:

(Dollars in thousands)	September 30, 2023		December 31, 2022
NOW and demand deposits	$	174,284	$	204,739
Money market deposits		85,825		60,931
Savings deposits		66,919		54,954
Time deposits of $250,000 and greater		13,980		7,796
Time deposits less than $250,000		70,777		53,943
	$	411,785	$	382,363

Maturities of Time Deposits

At September 30, 2023, the scheduled maturities of time deposits were as follows:

(Dollars in thousands)	Total
2023	$	26,320
2024		41,523
2025		12,401
2026		3,212
2027		1,141
2028		160
	$	84,757

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Borrowings (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank

A summary of borrowings from the FHLB is as follows:

		September 30, 2023
Principal Amounts			Maturity Dates		Interest Rates
(Dollars in thousands)
$	42,209			2023	5.22% to 5.57% – fixed
	800			2024	0.00% – fixed
	520			2025	0.00% – fixed
	718			2028	0.00% – fixed
	200			2030	0.00% – fixed
	430			2031	0.00% – fixed
$	44,877
		December 31, 2022
Principal Amounts			Maturity Dates		Interest Rates
(Dollars in thousands)
$	96,729			2023	0.44% to 4.38% – fixed
	800			2024	0.00% – fixed
	520			2025	0.00% – fixed
	718			2028	0.00% – fixed
	200			2030	0.00% – fixed
	430			2031	0.00% – fixed
$	99,397

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Off-Balance Sheet Credit Exposures (Tables)

9 Months Ended

Sep. 30, 2023

Credit Loss [Abstract]

Schedule of Notional Amounts of Financial Instruments with Off-Balance Sheet Credit Risk

Notional amounts of financial instruments with off-balance sheet credit risk are as follows as of September 30, 2023 and December 31, 2022:

	2023		2022
Unadvanced portions of loans	$	65,773	$	44,929
Commitments to originate loans		7,977		16,134
Standby letters of credit		—		302

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Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Company Compensation Expense for the ESOP

At September 30, 2023 and December 31, 2022, total unearned compensation for the ESOP was $4.0 million and $1.9 million, respectively.

	September 30, 2023		December 31, 2022(1)
Shares held by the ESOP include the following:
Allocated		39,864		29,898
Committed to be allocated		11,517		9,966
Unallocated		372,334		159,451
Total		423,715		199,315

(1) Adjusted for conversion of First Seacoast Bancorp, Inc.

Summary of Stock Options Outstanding

A summary of stock options outstanding as of September 30, 2023 and changes during the nine months ended September 30, 2023 is presented below:

	September 30, 2023
	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)		Aggregate Intrinsic Value
Stock options:								(In Thousands)
Balance at beginning of period		—		$	—		—	$	—
Granted		249,144			8.06		9.7		—
Vested		—			—		—		—
Forfeited		—			—		—		—
Balance at end of period		249,144		$	8.06		9.7	$	—
Date of grant	5/25/2023
Options granted		249,144
Exercise price	$	8.06
Vesting period(1)	3 years
Expiration date	5/25/2033
Expected volatility		27.8	%
Expected term	6.5 years
Expected dividend yield		0	%
Expected forfeiture rate		0	%
Risk free interest rate		3.9	%
Fair value per option	$	3.00
(1) Vesting is ratably and the period begins on the date of the grant.

Summary of Non-vested Restricted Shares Outstanding

A summary of non-vested restricted shares outstanding as of September 30, 2023 and December 31, 2022 and changes during the nine months ended September 30, 2023 and year ended December 31, 2022 is presented below:

	September 30, 2023
	Number of Shares		Weighted Average Grant Value
Restricted stock:
Non-vested at beginning of period		64,785	$	11.95
Granted		2,478		7.99
Vested		—		—
Forfeited		—		—
Non-vested at end of period		67,263	$	11.80

	December 31, 2022
	Number of Shares		Weighted Average Grant Value
Restricted stock:
Non-vested at beginning of period		98,850	$	11.95
Granted		—		—
Vested		(32,393)		11.95
Forfeited		(1,672)		11.95
Non-vested at end of period		64,785	$	11.95

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Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Summary of Right-of-Use Asset and Net Lease Liability

The following table summarizes information related to the Company’s right-of-use asset and net lease liability:

	September 30, 2023
	Operating Leases		Balance Sheet Location
	(Dollars in thousands)
Right-of-use asset	$	612	Other Assets
Net lease liability		612	Other Liabilities
	December 31, 2022
	Operating Leases		Balance Sheet Location
	(Dollars in thousands)
Right-of-use asset	$	202	Other Assets
Net lease liability		202	Other Liabilities

Components of Operating Lease Cost and Other Related Information

The components of operating lease cost and other related information are as follows:

	Three months ended September 30,
(Dollars in thousands)	2023			2022
Operating lease cost	$	16		$	10
Short-term lease cost		—			—
Variable lease cost (cost excluded from lease payments)		—			—
Sublease income		—			—
Total operating lease cost		16			10
Other Information:
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases		16			10
Operating lease - operating cash flows (liability reduction)	$	—		$	—
Weighted average lease term remaining (in years)		6.06			4.59
Weighted average discount rate		4.59	%		3.28	%
	Nine months ended September 30,
(Dollars in thousands)	2023			2022
Operating lease cost	$	38		$	42
Short-term lease cost		—			—
Variable lease cost (cost excluded from lease payments)		—			—
Sublease income		—			—
Total operating lease cost		38			42
Other Information:
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases		38			42
Operating lease - operating cash flows (liability reduction)	$	—		$	—
Weighted average lease term remaining (in years)		6.06			4.59
Weighted average discount rate		4.59	%		3.28	%

Schedule of Total Minimum Lease Payments Due In Future Periods For Lease Agreements

The total minimum lease payments due in future periods for lease agreements in effect at September 30, 2023 were as follows:

As of September 30, 2023	Future Minimum Lease Payments
	(Dollars in thousands)
Remainder of 2023	$	32
2024		125
2025		122
2026		120
2027		307
Total minimum lease payments		706
Less: interest		(94	)
Total lease liability	$	612

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Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2023

Disclosure Of Other Comprehensive Income Loss [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents a reconciliation of the changes in the components of other comprehensive income or loss for the dates indicated, including the amount of income tax expense or benefit allocated to each component of other comprehensive income or loss:

	Three Months Ended September 30,
Reclassification Adjustments	2023			2022			Affected Line Item in Consolidated Statements of (Loss) Income
	(Dollars in thousands)
Gains on sale of securities available-for-sale	$	—		$	—		Securities gains, net
Tax effect		—			—		Income tax (benefit) expense
		—			—		Net (loss) income
Net amortization of bond premiums		222			264		Interest on debt securities
Tax effect		(60	)		(71	)	Income tax (benefit) expense
		162			193		Net (loss) income
Net interest expense on swaps		—			(41	)	Interest on borrowings
Tax effect		—			11		Income tax (benefit) expense
		—			(30	)	Net (loss) income
Total reclassification adjustments	$	162		$	163

	Nine Months Ended September 30,
Reclassification Adjustments	2023			2022			Affected Line Item in Consolidated Statements of (Loss) Income
	(Dollars in thousands)
Gains on sale of securities available-for-sale	$	—		$	(52	)	Securities gains, net
Tax effect		—			14		Income tax (benefit) expense
		—			(38	)	Net (loss) income
Net amortization of bond premiums		712			751		Interest on debt securities
Tax effect		(191	)		(203	)	Income tax (benefit) expense
		521			548		Net (loss) income
Gains on termination of interest rate swaps		(849	)		—		Gain on termination of interest rate swaps
Tax effect		230			—		Income tax (benefit) expense
		(619	)		—		Net (loss) income
Net interest expense on swaps		—			(34	)	Interest on borrowings
Tax effect		—			9		Income tax (benefit) expense
		—			(25	)	Net (loss) income
Total reclassification adjustments	$	(98	)	$	485

Summary of Changes in Component of AOCI

The following tables present the changes in each component of AOCI for the periods indicated:

(Dollars in thousands)	Net Unrealized (Losses) Gains on AFS Securities(1)			Net Unrealized Gains (Losses) on Cash Flow Hedges(1)			AOCI(1)
Balance at June 30, 2023	$	(9,922	)	$	—		$	(9,922	)
Other comprehensive loss before reclassification		(5,023	)		—			(5,023	)
Amounts reclassified from AOCI		162			—			162
Other comprehensive loss		(4,861	)		—			(4,861	)
Balance at September 30, 2023	$	(14,783	)	$	—		$	(14,783	)
Balance at June 30, 2022	$	(8,626	)	$	543		$	(8,083	)
Other comprehensive (loss) income before reclassification		(5,153	)		250			(4,903	)
Amounts reclassified from AOCI		193			(30	)		163
Other comprehensive (loss) income		(4,960	)		220			(4,740	)
Balance at September 30, 2022	$	(13,586	)	$	763		$	(12,823	)
Balance at December 31, 2022	$	(10,428	)	$	701		$	(9,727	)
Other comprehensive loss before reclassification		(4,876	)		(82	)		(4,958	)
Amounts reclassified from AOCI		521			(619	)		(98	)
Other comprehensive loss		(4,355	)		(701	)		(5,056	)
Balance at September 30, 2023	$	(14,783	)	$	—		$	(14,783	)
Balance at December 31, 2021	$	575		$	146		$	721
Other comprehensive (loss) income before reclassification		(14,671	)		642			(14,029	)
Amounts reclassified from AOCI		510			(25	)		485
Other comprehensive (loss) income		(14,161	)		617			(13,544	)
Balance at September 30, 2022	$	(13,586	)	$	763		$	(12,823	)

(1)All amounts are net of tax.

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Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2023

Disclosure Of Regulatory Matters [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

						Minimum Capital					Minimum Capital Required to be Well					Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer
	Actual					Requirement					Capitalized					Fully Phased-In
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2023
Total Capital (to risk-weighted assets)	$	65,432		17.92	%	$	29,203		8.00	%	$	36,504		10.00	%	$	38,329		10.50	%
Tier 1 Capital (to risk-weighted assets)		61,625		16.88			21,902		6.00			29,203		8.00			31,028		8.50
Tier 1 Capital (to average assets)		61,625		11.12			22,174		4.00			27,718		5.00			22,174		4.00
Common Equity Tier 1 (to risk-weighted assets)		61,625		16.88			16,427		4.50			23,727		6.50			25,552		7.00

						Minimum Capital					Minimum Capital Required to be Well					Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer
	Actual					Requirement					Capitalized					Fully Phased-In
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2022
Total Capital (to risk-weighted assets)	$	52,475		15.53	%	$	27,028		8.00	%	$	33,785		10.00	%	$	35,474		10.50	%
Tier 1 Capital (to risk-weighted assets)		48,821		14.45			20,271		6.00			27,028		8.00			28,717		8.50
Tier 1 Capital (to average assets)		48,821		9.20			21,224		4.00			26,530		5.00			21,224		4.00
Common Equity Tier 1 (to risk-weighted assets)		48,821		14.45			15,203		4.50			21,960		6.50			23,649		7.00

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Cash Flow Hedges Associated with Interest Rate Risk Management Activities

The following table summarizes the Company's cash flow hedges associated with its interest rate risk management activities:

				December 31, 2022
(Dollars in thousands)	Start Date	Maturity Date	Rate	Notional		Assets		Liabilities
Debt Hedging
Hedging Instruments:
Interest Rate Swap 2020	4/13/2020	4/13/2025	0.68%	$	5,000	$	431	$	—
Interest Rate Swap 2021	4/13/2021	4/13/2026	0.74%		5,000		530		—
Total Hedging Instruments				$	10,000	$	961	$	—
Hedged Items:
Variability in cash flows related to       90-day FHLB advances				N/A		$	—	$	10,000

Summary of the Effect of Cash Flow Hedge Accounting

The following tables summarize the effect of cash flow hedge accounting on the consolidated statements of (loss) income for the three and nine months ended September 30, 2023 and 2022 :

	Location and Amount of Gain or Loss Recognized in Consolidated Statements of (Loss) Income
	Three Months Ended September 30,
(Dollars in thousands)	2023				2022
	Interest Income (Expense)		Other Income (Expense)		Interest Income (Expense)		Other Income (Expense)
The effect of cash flow hedge accounting:
Amount reclassified from AOCI into expense	$	—	$	—	$	41	$	—

	Location and Amount of Gain or Loss Recognized in Consolidated Statements of (Loss) Income
	Nine Months Ended September 30,
(Dollars in thousands)	2023				2022
	Interest Income (Expense)		Other Income (Expense)		Interest Income (Expense)		Other Income (Expense)
The effect of cash flow hedge accounting:
Amount reclassified from AOCI into expense	$	—	$	—	$	34	$	—

Summary of Balance Sheet Related to Cumulative Basis Adjustment for Fair Value Hedges

As of September 30, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:

Location in Consolidated Balance Sheets	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
(Dollars in thousands)	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Total loans	$	24,553	$	—	$	447	$	—
Total	$	24,553	$	—	$	447	$	—

Summary of Fair Values of Derivative Financial Instruments Classification on Consolidated Balance Sheets

The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheet:

	Derivative Assets					Derivative Liabilities
	Notional Amount		Location	Fair Value		Notional Amount		Location	Fair Value
(Dollars in thousands)
September 30, 2023
Derivatives designated as
hedging instruments:
Interest rate contracts - fair value hedge	$	25,000	Other assets	$	447	$	—	Other liabilities	$	—
Total derivatives designated as
hedging instruments				$	447				$	—
Derivatives not designated as
hedging instruments:
Customer loan swaps	$	4,799	Other assets	$	158	$	4,799	Other liabilities	$	158
Total derivatives not designated as
hedging instruments				$	158				$	158
December 31, 2022
Derivatives designated as
hedging instruments:
Interest rate contracts - cash flow hedge	$	10,000	Other assets	$	961	$	—	Other liabilities	$	—
Total derivatives designated as
hedging instruments				$	961				$	—

Summary of Derivative Financial Instruments Not Designated as Hedging Instruments on Consolidated Statements of (Loss) Income

The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the consolidated statements of (loss) income for the periods presented:

		Amount of (Loss) Gain Recognized in Income
		Three Months Ended					Nine Months Ended
		September 30, 2023			September 30, 2022		September 30, 2023		September 30, 2022
(Dollars in thousands)	Location of (Loss) Gain
Customer loan swaps	Interest and fees on loans	$	(12	)	$	—	$	83	$	—

Summary of Derivative Positions Offset in Consolidated Balance Sheets

The following tables present the information about derivative positions that are eligible for offset in the consolidated balance sheets as of September 30, 2023 and December 31, 2022:

							Gross Amounts Not Offset
(Dollars in thousands)	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Recognized		Financial Instruments Pledged (Received)		Cash Collateral Pledged (Received)(1)		Net Amount
September 30, 2023
Derivative Assets:
Interest rate contracts (2)	$	447	$	—	$	447	$	—	$	447	$	—
Customer loan swaps - commercial customer (3)		158		—		158		—		—		158
Total	$	605	$	—	$	605	$	—	$	447	$	158
Derivative Liabilities:
Customer loan swaps - dealer bank (3)	$	158	$	—	$	158	$	—	$	158	$	—
December 31, 2022
Derivative Assets:
Interest rate contracts (2)	$	961	$	—	$	961	$	—	$	535	$	426

(1) The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated balance sheets.

(2) Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement with the counterparty and settles collateral on a net basis for all contracts.

(3) The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. The Company does not post collateral to its commercial customers as part of its contract.

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Fair Values of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
September 30, 2023
Securities available-for-sale:
U.S. Government-sponsored enterprises obligations	$	1,769	$	—	$	1,769	$	—
U.S Government agency small business administration    pools guaranteed by the SBA		7,244		—		7,244		—
Collateralized mortgage obligations issued by    the FHLMC, FNMA and GNMA		5,592		—		5,592		—
Residential mortgage-backed-securities		20,732		—		20,732		—
Municipal bonds		59,642		—		59,642		—
Corporate debt		486		—		486		—
Corporate subordinated debt		7,087		—		7,087		—
Other assets:
Mortgage servicing rights		338		—		—		338
Derivatives		605		—		605		—
Other liabilities:
Derivatives		158		—		158		—

	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
December 31, 2022
Securities available-for-sale:
U.S. Government-sponsored enterprises obligations	$	1,826	$	—	$	1,826	$	—
U.S Government agency small business administration    pools guaranteed by the SBA		8,359		—		8,359		—
Collateralized mortgage obligations issued by    the FHLMC, FNMA and GNMA		6,222		—		6,222		—
Residential mortgage-backed-securities		21,823		—		21,823		—
Municipal bonds		62,416		—		62,416		—
Corporate debt		497		—		497		—
Corporate subordinated debt		4,957		—		4,957		—
Other assets:
Mortgage servicing rights	$	357		—		—		357
Derivatives		961		—		961		—

Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

For the nine months ended September 30, 2023 and 2022, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:

(Dollars in thousands)	Mortgage Servicing Rights (1)
Balance as of January 1, 2023	$	357
Included in net (loss) income		(19	)
Balance as of September 30, 2023	$	338
Total unrealized net gains (losses) included in net income related to assets still held as of September 30, 2023	$	—
Balance as of January 1, 2022	$	322
Included in net (loss) income		47
Balance as of September 30, 2022	$	369
Total unrealized net gains (losses) included in net income related to assets still held as of September 30, 2022	$	—

(1)Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of (loss) income.

Summary of Significant Unobservable Inputs used in Level 3 Assets Measured at Fair Value on Recurring Basis

For Level 3 assets measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

	September 30, 2023
(Dollars in thousands)	Valuation Technique	Description	Range	Weighted Average (1)	Fair Value
Mortgage Servicing Rights	Discounted Cash Flow	Prepayment Rate	5.66% - 13.52%	6.70%	$	338
		Discount Rate	10.13% - 10.13%	10.13%
		Delinquency Rate	1.90% - 2.48%	2.00%
		Default Rate	0.14% - 0.18%	0.15%

	December 31, 2022
(Dollars in thousands)	Valuation Technique	Description	Range	Weighted Average (1)	Fair Value
Mortgage Servicing Rights	Discounted Cash Flow	Prepayment Rate	6.48% - 23.49%	7.78%	$	357
		Discount Rate	9.50% - 9.50%	9.50%
		Delinquency Rate	2.13% - 2.79%	2.24%
		Default Rate	0.14% - 0.20%	0.15%

(1)Unobservable inputs for mortgage servicing rights were weighted by loan amount.

Fair Value Measurements, Recurring and Nonrecurring

The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments at September 30, 2023 and December 31, 2022 are as follows:

(Dollars in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2023
Financial Assets:
Cash and due from banks	$	7,168	$	7,168	$	7,168	$	—	$	—
Federal Home Loan Bank stock		1,972		1,972		—		1,972		—
Bank-owned life insurance		4,642		4,642		—		4,642		—
Loans, net		424,136		372,797		—		—		372,797
Accrued interest receivable		2,130		2,130		2,130		—		—
Financial Liabilities:
Deposits	$	411,785	$	409,866	$	327,029	$	82,837	$	—
Advances from Federal Home Loan Bank		44,877		44,435		—		44,435		—
Advances from Federal Reserve Bank		25,000		25,024		—		25,024		—
Mortgagors’ tax escrow		2,381		2,381		—		2,381		—
Accrued interest payable		509		509		509		—		—
December 31, 2022
Financial Assets:
Cash and due from banks	$	8,250	$	8,250	$	8,250	$	—	$	—
Interest-bearing time deposits with other banks		747		747		—		747		—
Federal Home Loan Bank stock		3,502		3,502		—		3,502		—
Bank-owned life insurance		4,561		4,561		—		4,561		—
Loans, net		398,924		361,402		—		—		361,402
Accrued interest receivable		1,988		1,988		1,988		—		—
Financial Liabilities:
Deposits	$	382,363	$	379,714	$	320,624	$	59,090	$	—
Advances from Federal Home Loan Bank		99,397		97,675		—		97,675		—
Mortgagors’ tax escrow		938		938		—		938		—
Accrued interest payable		95		95		95		—		—

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Summary of Significant Accounting Policies - Additional Information (Detail)			3 Months Ended		9 Months Ended
	Jan. 19, 2023 $ / shares shares	Aug. 17, 2021 USD ($)	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) Segment Service $ / shares shares	Sep. 30, 2022 USD ($)	Dec. 31, 2022 $ / shares shares
Common stock, price per share | $ / shares			$ 0.01		$ 0.01		$ 0.01
Common stock issued			5,192,515		5,192,515		5,183,439
Number of core services | Service					4
Number of reportable segment | Segment					1
Accounts Purchase Price | $		$ 324,000
Deposit Assets, Amortization Expense from Expirations | $			$ 8,000	$ 9,000	$ 22,000	$ 27,000
Emerging growth of company status					(i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering (which will be December 31, 2024 for the Company); (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates).
First Seacoast Bancorp, Inc [Member]
Common stock shares sold	2,805,000
Common stock, price per share | $ / shares	$ 10
Common stock coversion ratio	0.8358
First Seacoast Bancorp, Inc [Member] | First Seacoast Bank Employee Stock Ownership Plan [Member]
Common stock issued	224,400
ASU 2022-2 [Member]
Change in accounting principle, accounting standards update, early adoption [true false]			true		true
Change in accounting principle, accounting standards update, immaterial effect [true false]			true		true
ASU 2019-11 [Member]
Change in accounting principle, accounting standards update, early adoption [true false]			true		true
Change in accounting principle, accounting standards update, immaterial effect [true false]			true		true
ASU 2019-04 [Member]
Change in accounting principle, accounting standards update, early adoption [true false]			true		true
ASU 2016-13 [Member]
Change in accounting principle, accounting standards update, early adoption [true false]			true		true
Change in accounting principle, accounting standards update, immaterial effect [true false]			true		true
Change in accounting principle, accounting standards update, adopted			true		true
Change in accounting principle, accounting standards update, adoption date			Jan. 01, 2023		Jan. 01, 2023

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Summary of Significant Accounting Policies - Summary of impact of the adoption (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Jan. 01, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Assets [Abstract]
Allowance for credit losses on loans	$ 3,349	$ 3,319		$ 3,581	$ 3,584	$ 3,644	$ 3,590
Liabilities [Abstract]
Allowance for credit losses on OBS credit exposures	413,000			18,000
ASU 2016-13 [Member] | As reported under ASC 326 [Member]
Assets [Abstract]
Allowance for credit losses on loans			$ 3,286
Liabilities [Abstract]
Allowance for credit losses on OBS credit exposures			308
ASU 2016-13 [Member] | Pre-ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			3,581
Liabilities [Abstract]
Allowance for credit losses on OBS credit exposures			18
ASU 2016-13 [Member] | Impact of ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			(295)	(295)
Liabilities [Abstract]
Allowance for credit losses on OBS credit exposures			290
CRE [Member]
Assets [Abstract]
Allowance for credit losses on loans	788	806		942	944	1,019	833
CRE [Member] | ASU 2016-13 [Member] | As reported under ASC 326 [Member]
Assets [Abstract]
Allowance for credit losses on loans			788
CRE [Member] | ASU 2016-13 [Member] | Pre-ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			942
CRE [Member] | ASU 2016-13 [Member] | Impact of ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			(154)	(154)
MF [Member]
Assets [Abstract]
Allowance for credit losses on loans	71	49		54	56	57	80
MF [Member] | ASU 2016-13 [Member] | As reported under ASC 326 [Member]
Assets [Abstract]
Allowance for credit losses on loans			55
MF [Member] | ASU 2016-13 [Member] | Pre-ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			54
MF [Member] | ASU 2016-13 [Member] | Impact of ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			1	1
C+I [Member]
Assets [Abstract]
Allowance for credit losses on loans	288	277		184	197	208	194
C+I [Member] | ASU 2016-13 [Member] | As reported under ASC 326 [Member]
Assets [Abstract]
Allowance for credit losses on loans			273
C+I [Member] | ASU 2016-13 [Member] | Pre-ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			184
C+I [Member] | ASU 2016-13 [Member] | Impact of ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			89	89
ADL [Member]
Assets [Abstract]
Allowance for credit losses on loans	101	70		138	126	110	178
ADL [Member] | ASU 2016-13 [Member] | As reported under ASC 326 [Member]
Assets [Abstract]
Allowance for credit losses on loans			120
ADL [Member] | ASU 2016-13 [Member] | Pre-ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			138
ADL [Member] | ASU 2016-13 [Member] | Impact of ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			(18)	(18)
RES [Member]
Assets [Abstract]
Allowance for credit losses on loans	1,736	1,910		2,048	2,049	2,025	2,139
RES [Member] | ASU 2016-13 [Member] | As reported under ASC 326 [Member]
Assets [Abstract]
Allowance for credit losses on loans			1,847
RES [Member] | ASU 2016-13 [Member] | Pre-ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			2,048
RES [Member] | ASU 2016-13 [Member] | Impact of ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			(201)	(202)
HELOC [Member]
Assets [Abstract]
Allowance for credit losses on loans	161	85		81	91	87	63
HELOC [Member] | ASU 2016-13 [Member] | As reported under ASC 326 [Member]
Assets [Abstract]
Allowance for credit losses on loans			88
HELOC [Member] | ASU 2016-13 [Member] | Pre-ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			81
HELOC [Member] | ASU 2016-13 [Member] | Impact of ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			7	7
CON [Member]
Assets [Abstract]
Allowance for credit losses on loans	$ 204	109		100	93	111	75
CON [Member] | ASU 2016-13 [Member] | As reported under ASC 326 [Member]
Assets [Abstract]
Allowance for credit losses on loans			114
CON [Member] | ASU 2016-13 [Member] | Pre-ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			100
CON [Member] | ASU 2016-13 [Member] | Impact of ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			14	14
Unallocated [Member]
Assets [Abstract]
Allowance for credit losses on loans		$ 13		34	$ 28	$ 27	$ 28
Unallocated [Member] | ASU 2016-13 [Member] | As reported under ASC 326 [Member]
Assets [Abstract]
Allowance for credit losses on loans			1
Unallocated [Member] | ASU 2016-13 [Member] | Pre-ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			34
Unallocated [Member] | ASU 2016-13 [Member] | Impact of ASC 326 Adoption [Member]
Assets [Abstract]
Allowance for credit losses on loans			$ (33)	$ (32)

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Securities Available-for-Sale - Schedule of amortized cost and fair value of securities available-for-sale (Detail) - USD ($) $ in Thousands	Sep. 30, 2023		Dec. 31, 2022
Amortized Cost	$ 122,782		$ 120,401
Gross Unrealized Gains			180
Gross Unrealized Losses	(20,230)		(14,481)
Fair Value	102,552		106,100
U.S. Government-sponsored enterprises obligations [Member]
Amortized Cost	2,172		2,191
Gross Unrealized Losses	(403)		(365)
Fair Value	1,769		1,826
U.S. Government agency small business administration pools guaranteed by SBA [Member]
Amortized Cost	8,625	[1]	9,475
Gross Unrealized Losses	(1,381)		(1,116)
Fair Value	7,244	[1]	8,359
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member]
Amortized Cost	6,401	[1]	6,922
Gross Unrealized Gains			8
Gross Unrealized Losses	(809)		(708)
Fair Value	5,592	[1]	6,222
Residential mortgage backed securities [Member]
Amortized Cost	26,202	[1]	26,390
Gross Unrealized Losses	(5,470)		(4,567)
Fair Value	20,732	[1]	21,823
Municipal bonds [Member]
Amortized Cost	70,645		69,373
Gross Unrealized Gains			172
Gross Unrealized Losses	(11,003)		(7,129)
Fair Value	59,642		62,416
Corporate debt [Member]
Amortized Cost	500		500
Gross Unrealized Losses	(14)		(3)
Fair Value	486		497
Corporate subordinated debt [Member]
Amortized Cost	8,237		5,550
Gross Unrealized Losses	(1,150)		(593)
Fair Value	$ 7,087		$ 4,957

[1] Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans.

XML

Securities Available-for-Sale - Schedule of amortized cost and fair values of securities available-for-sale by contractual maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2023		Dec. 31, 2022
Due after one year through five years, Amortized Cost	$ 2,234
Due after five years through ten years, Amortized Cost	9,988
Due after ten years, Amortized Cost	69,332
Total U.S. Government-sponsored enterprises obligations, municipal bonds, corporate debt and corporate subordinated debt, Amortized Cost	81,554
Mortgage-backed securities, Amortized Cost	122,782		$ 120,401
Due after one year through five years, Fair Value	1,410
Due after five years through ten years, Fair Value	7,962
Due after ten years, Fair Value	59,612
Total U.S. Government-sponsored enterprises obligations, municipal bonds, corporate debt and corporate subordinated debt, Fair Value	68,984
Mortgage-backed securities, Fair Value	102,552		106,100
U.S. Government agency small business administration pools guaranteed by SBA [Member]
Mortgage-backed securities, Amortized Cost	8,625	[1]	9,475
Mortgage-backed securities, Fair Value	7,244	[1]	8,359
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member]
Mortgage-backed securities, Amortized Cost	6,401	[1]	6,922
Mortgage-backed securities, Fair Value	5,592	[1]	6,222
Residential mortgage backed securities [Member]
Mortgage-backed securities, Amortized Cost	26,202	[1]	26,390
Mortgage-backed securities, Fair Value	$ 20,732	[1]	$ 21,823

[1] Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans.

XML

Securities Available-for-Sale - Summary of gross unrealized losses and fair value for those investments with unrealized losses (Detail) $ in Thousands	Sep. 30, 2023 USD ($) Number	Dec. 31, 2022 USD ($) Number
Less than 12 Months, Number of Securities | Number	28	113
Less than 12 Months, Fair Value	$ 20,853	$ 68,033
Less than 12 Months, Unrealized Losses	$ (1,217)	$ (7,853)
More than 12 Months, Number of Securities | Number	144	41
More than 12 Months, Fair Value	$ 81,699	$ 28,219
More than 12 Months, Unrealized Losses	(19,013)	(6,628)
Total, Fair Value	102,552	96,252
Total, Unrealized Losses	$ (20,230)	$ (14,481)
U.S. Government-sponsored enterprises obligations [Member]
Less than 12 Months, Number of Securities | Number		1
Less than 12 Months, Fair Value		$ 453
Less than 12 Months, Unrealized Losses		$ (43)
More than 12 Months, Number of Securities | Number	4	3
More than 12 Months, Fair Value	$ 1,769	$ 1,373
More than 12 Months, Unrealized Losses	(403)	(322)
Total, Fair Value	1,769	1,826
Total, Unrealized Losses	$ (403)	$ (365)
U.S. Government agency small business administration pools guaranteed by SBA [Member]
Less than 12 Months, Number of Securities | Number		8
Less than 12 Months, Fair Value		$ 5,947
Less than 12 Months, Unrealized Losses		$ (602)
More than 12 Months, Number of Securities | Number	11	3
More than 12 Months, Fair Value	$ 7,244	$ 2,412
More than 12 Months, Unrealized Losses	(1,381)	(514)
Total, Fair Value	7,244	8,359
Total, Unrealized Losses	$ (1,381)	$ (1,116)
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member]
Less than 12 Months, Number of Securities | Number	1	5
Less than 12 Months, Fair Value	$ 906	$ 3,212
Less than 12 Months, Unrealized Losses	$ (21)	$ (209)
More than 12 Months, Number of Securities | Number	9	4
More than 12 Months, Fair Value	$ 4,686	$ 2,016
More than 12 Months, Unrealized Losses	(788)	(499)
Total, Fair Value	5,592	5,228
Total, Unrealized Losses	$ (809)	$ (708)
Residential mortgage backed securities [Member]
Less than 12 Months, Number of Securities | Number	3	8
Less than 12 Months, Fair Value	$ 2,228	$ 4,239
Less than 12 Months, Unrealized Losses	$ (94)	$ (503)
More than 12 Months, Number of Securities | Number	31	23
More than 12 Months, Fair Value	$ 18,504	$ 16,649
More than 12 Months, Unrealized Losses	(5,376)	(4,064)
Total, Fair Value	20,732	20,888
Total, Unrealized Losses	$ (5,470)	$ (4,567)
Municipal bonds [Member]
Less than 12 Months, Number of Securities | Number	20	86
Less than 12 Months, Fair Value	$ 14,151	$ 49,228
Less than 12 Months, Unrealized Losses	$ (968)	$ (5,900)
More than 12 Months, Number of Securities | Number	85	8
More than 12 Months, Fair Value	$ 45,491	$ 5,769
More than 12 Months, Unrealized Losses	(10,035)	(1,229)
Total, Fair Value	59,642	54,997
Total, Unrealized Losses	$ (11,003)	$ (7,129)
Corporate debt [Member]
Less than 12 Months, Number of Securities | Number	1	1
Less than 12 Months, Fair Value	$ 486	$ 497
Less than 12 Months, Unrealized Losses	(14)	(3)
Total, Fair Value	486	497
Total, Unrealized Losses	$ (14)	$ (3)
Corporate subordinated debt [Member]
Less than 12 Months, Number of Securities | Number	3	4
Less than 12 Months, Fair Value	$ 3,082	$ 4,457
Less than 12 Months, Unrealized Losses	$ (120)	(593)
More than 12 Months, Number of Securities | Number	4
More than 12 Months, Fair Value	$ 4,005
More than 12 Months, Unrealized Losses	(1,030)
Total, Fair Value	7,087	4,457
Total, Unrealized Losses	$ (1,150)	$ (593)

XML

Securities Available-for-Sale - Additional Information (Detail) - Security	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Abstract]
Securities available for sale	172
Number of holdings of securities aggregate carrying value exceeded ten percentage of stockholders' equity	0	0

XML

Securities Available-for-Sale - Summary of sales proceeds, principal payments received and gross realized gains and losses on available for sale securities (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Debt Securities, Available-for-Sale [Abstract]
Proceeds from sales, maturities and principal payments received on securities available-for-sale	$ 1,450	$ 1,545	$ 3,661	$ 4,087
Gross realized gains				52
Net realized gains				$ 52

XML

Loans and Allowance for Credit Losses on Loans - Additional Information (Detail)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($) Loan	Dec. 31, 2022 USD ($) Loan
Loans collateralized by real estate	$ 1	$ 1
Loans outstanding	5,300,000	$ 5,300,000	$ 4,400,000
Number of Loans | Loan		0	0
Interest income recognized on non-accrual loans	$ 0	$ 0
Non-Accrual Loans			$ 89,000
ASU 2016-13
Change in accounting principle, accounting standards update, adopted	true	true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2023	Jan. 01, 2023
Residential Real Estate [Member]
Loans collateralized by real estate	$ 0	$ 0	0
RES [Member]
Non-Accrual Loans	$ 84,000	84,000	$ 84,000
RES [Member] | Residential Real Estate [Member]
Real estate appraial value		$ 422,000

XML

Loans and Allowance for Credit Losses on Loans - Schedule of Accounts, Notes, Loans and Financing Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Total loans	$ 424,805		$ 400,056
Net deferred loan costs	2,680		2,449
Allowance for credit losses on loans	(3,349)	$ (3,319)	(3,581)	$ (3,584)	$ (3,644)	$ (3,590)
Net loans	424,136		398,924
CRE [Member]
Total loans	87,295		80,506
Allowance for credit losses on loans	(788)	(806)	(942)	(944)	(1,019)	(833)
MF [Member]
Total loans	7,679		8,185
Allowance for credit losses on loans	(71)	(49)	(54)	(56)	(57)	(80)
C+I [Member]
Total loans	24,875		24,059
Allowance for credit losses on loans	(288)	(277)	(184)	(197)	(208)	(194)
ADL [Member]
Total loans	19,255		18,490
Allowance for credit losses on loans	(101)	(70)	(138)	(126)	(110)	(178)
RES [Member]
Total loans	264,477		251,466
Allowance for credit losses on loans	(1,736)	(1,910)	(2,048)	(2,049)	(2,025)	(2,139)
HELOC [Member]
Total loans	12,614		10,161
Allowance for credit losses on loans	(161)	(85)	(81)	(91)	(87)	(63)
CON [Member]
Total loans	8,610		7,189
Allowance for credit losses on loans	$ (204)	$ (109)	$ (100)	$ (93)	$ (111)	$ (75)

XML

Loans and Allowance for Credit Losses on Loans - Transactions In The Allowance For Loan Losses ("ALL") (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Balance	$ 3,319	$ 3,644	$ 3,581	$ 3,590
Provision for credit losses	30	(60)	65
Charge-offs			(4)	(9)
Recoveries			2	3
Balance	3,349	3,584	3,349	3,584
ASU 2016-13 [Member] | Impact of adopting ASC 326 [Member]
Balance			(295)
CRE [Member]
Balance	806	1,019	942	833
Provision for credit losses	(18)	(75)		111
Balance	788	944	788	944
CRE [Member] | ASU 2016-13 [Member] | Impact of adopting ASC 326 [Member]
Balance			(154)
MF [Member]
Balance	49	57	54	80
Provision for credit losses	22	(1)	16	(24)
Balance	71	56	71	56
MF [Member] | ASU 2016-13 [Member] | Impact of adopting ASC 326 [Member]
Balance			1
C+I [Member]
Balance	277	208	184	194
Provision for credit losses	11	(11)	15	2
Recoveries				1
Balance	288	197	288	197
C+I [Member] | ASU 2016-13 [Member] | Impact of adopting ASC 326 [Member]
Balance			89
ADL [Member]
Balance	70	110	138	178
Provision for credit losses	31	16	(19)	(52)
Balance	101	126	101	126
ADL [Member] | ASU 2016-13 [Member] | Impact of adopting ASC 326 [Member]
Balance			(18)
RES [Member]
Balance	1,910	2,025	2,048	2,139
Provision for credit losses	(174)	24	(110)	(90)
Balance	1,736	2,049	1,736	2,049
RES [Member] | ASU 2016-13 [Member] | Impact of adopting ASC 326 [Member]
Balance			(202)
HELOC [Member]
Balance	85	87	81	63
Provision for credit losses	76	4	73	28
Balance	161	91	161	91
HELOC [Member] | ASU 2016-13 [Member] | Impact of adopting ASC 326 [Member]
Balance			7
CON [Member]
Balance	109	111	100	75
Provision for credit losses	95	(18)	92	25
Charge-offs			(4)	(9)
Recoveries			2	2
Balance	204	93	204	93
CON [Member] | ASU 2016-13 [Member] | Impact of adopting ASC 326 [Member]
Balance			14
Unallocated [Member]
Balance	13	27	34	28
Provision for credit losses	$ (13)	1	(2)
Balance		$ 28		$ 28
Unallocated [Member] | ASU 2016-13 [Member] | Impact of adopting ASC 326 [Member]
Balance			$ (32)

XML

Loans and Allowance for Credit Losses on Loans - Information About Loans And The ALL By Portfolio Segment Are Summarized (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Individually evaluated for impairment	$ 184		$ 278
Collectively evaluated for impairment	424,621		399,778
Total	424,805		400,056
Collectively evaluated for impairment	3,349		3,581
Total	3,349	$ 3,319	3,581	$ 3,584	$ 3,644	$ 3,590
CRE [Member]
Collectively evaluated for impairment	87,295		80,506
Total	87,295		80,506
Collectively evaluated for impairment	788		942
Total	788	806	942	944	1,019	833
MF [Member]
Collectively evaluated for impairment	7,679		8,185
Total	7,679		8,185
Collectively evaluated for impairment	71		54
Total	71	49	54	56	57	80
C+I [Member]
Collectively evaluated for impairment	24,875		24,059
Total	24,875		24,059
Collectively evaluated for impairment	288		184
Total	288	277	184	197	208	194
ADL [Member]
Collectively evaluated for impairment	19,255		18,490
Total	19,255		18,490
Collectively evaluated for impairment	101		138
Total	101	70	138	126	110	178
RES [Member]
Individually evaluated for impairment	184		273
Collectively evaluated for impairment	264,293		251,193
Total	264,477		251,466
Collectively evaluated for impairment	1,736		2,048
Total	1,736	1,910	2,048	2,049	2,025	2,139
HELOC [Member]
Collectively evaluated for impairment	12,614		10,161
Total	12,614		10,161
Collectively evaluated for impairment	161		81
Total	161	85	81	91	87	63
CON [Member]
Individually evaluated for impairment			5
Collectively evaluated for impairment	8,610		7,184
Total	8,610		7,189
Collectively evaluated for impairment	204		100
Total	$ 204	109	100	93	111	75
Unallocated [Member]
Collectively evaluated for impairment			34
Total		$ 13	$ 34	$ 28	$ 27	$ 28

XML

Loans and Allowance for Credit Losses on Loans - Analysis Of Past Due Loans By Portfolio Segment Including Non-Accrual Loans Without ACL (Detail) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Total Past Due	$ 424,805,000
Total	424,805,000	$ 400,056,000
Non-Accrual Loans		89,000
30-59 Days Past Due [Member]
Total Past Due		12,000
60-89 Days Past Due [Member]
Total Past Due		84,000
Total Past Due
Total Past Due		96,000
Current
Total Past Due	424,805,000	399,960,000
CRE [Member]
Total Past Due	87,295,000
Total	87,295,000	80,506,000
CRE [Member] | Current
Total Past Due	87,295,000	80,506,000
MF [Member]
Total Past Due	7,679,000
Total	7,679,000	8,185,000
MF [Member] | Current
Total Past Due	7,679,000	8,185,000
C+I [Member]
Total Past Due	24,875,000
Total	24,875,000	24,059,000
C+I [Member] | Current
Total Past Due	24,875,000	24,059,000
ADL [Member]
Total Past Due	19,255,000
Total	19,255,000	18,490,000
ADL [Member] | Current
Total Past Due	19,255,000	18,490,000
RES [Member]
Total Past Due	264,477,000
Total	264,477,000	251,466,000
Non-Accrual Loans	84,000	84,000
RES [Member] | 60-89 Days Past Due [Member]
Total Past Due		84,000
RES [Member] | Total Past Due
Total Past Due		84,000
RES [Member] | Current
Total Past Due	264,477,000	251,382,000
HELOC [Member]
Total Past Due	12,614,000
Total	12,614,000	10,161,000
HELOC [Member] | 30-59 Days Past Due [Member]
Total Past Due		5,000
HELOC [Member] | Total Past Due
Total Past Due		5,000
HELOC [Member] | Current
Total Past Due	12,614,000	10,156,000
CON [Member]
Total Past Due	8,610,000
Total	8,610,000	7,189,000
Non-Accrual Loans		5,000
CON [Member] | 30-59 Days Past Due [Member]
Total Past Due		7,000
CON [Member] | Total Past Due
Total Past Due		7,000
CON [Member] | Current
Total Past Due	$ 8,610,000	$ 7,181,000

XML

Loans and Allowance for Credit Losses on Loans - Provides Information On Impaired Loans (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Recorded Carrying Value	$ 278
Unpaid Principal Balance	278
Average Recorded Investment	505
Interest Income Recognized	35
RES [Member]
Recorded Carrying Value	273
Unpaid Principal Balance	273
Average Recorded Investment	446
Interest Income Recognized	32
HELOC [Member]
Average Recorded Investment	57
Interest Income Recognized	3
CON [Member]
Recorded Carrying Value	5
Unpaid Principal Balance	5
Average Recorded Investment	$ 2

XML

Loans and Allowance for Credit Losses on Loans - Schedule Of Risk Category Of Loans By Portfolio Segment By Vintage Under CECL Methodology (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2023	$ 38,316
2022	67,680
2021	85,806
2020	60,923
2019	26,905
Prior	94,142
Revolving Loans Amortized Cost Basis	51,033
Total loans	424,805
CRE [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	9,756
2022	10,257
2021	8,123
2020	2,821
2019	4,849
Prior	17,307
Revolving Loans Amortized Cost Basis	34,182
Total loans	87,295
MF [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2022	148
2021	5,201
2020	1,093
Prior	875
Revolving Loans Amortized Cost Basis	362
Total loans	7,679
C+I [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	2,813
2022	6,928
2021	4,363
2020	3,006
2019	1,635
Prior	2,255
Revolving Loans Amortized Cost Basis	3,875
Total loans	24,875
ADL [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	11,077
2022	6,050
2021	1,507
Prior	621
Total loans	19,255
RES [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	12,513
2022	41,831
2021	64,656
2020	52,469
2019	20,150
Prior	72,858
Total loans	264,477
HELOC [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Revolving Loans Amortized Cost Basis	12,614
Total loans	12,614
CON [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	2,157
2022	2,466
2021	1,956
2020	1,534
2019	271
Prior	226
Total loans	8,610
Pass [Member] | CRE [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	9,756
2022	10,257
2021	8,123
2020	2,821
2019	4,849
Prior	17,307
Revolving Loans Amortized Cost Basis	34,182
Total loans	87,295
Pass [Member] | MF [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2022	148
2021	5,201
2020	1,093
Prior	875
Revolving Loans Amortized Cost Basis	362
Total loans	7,679
Pass [Member] | C+I [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	2,813
2022	6,928
2021	4,363
2020	3,006
2019	1,635
Prior	2,255
Revolving Loans Amortized Cost Basis	3,875
Total loans	24,875
Pass [Member] | ADL [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	11,077
2022	6,050
2021	1,507
Prior	621
Total loans	19,255
Pass [Member] | RES [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	12,513
2022	41,831
2021	64,656
2020	52,469
2019	20,150
Prior	72,858
Total loans	264,477
Pass [Member] | HELOC [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Revolving Loans Amortized Cost Basis	12,614
Total loans	12,614
Pass [Member] | CON [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
2023	2,157
2022	2,466
2021	1,956
2020	1,534
2019	271
Prior	226
Total loans	$ 8,610

XML

Loans and Allowance for Credit Losses on Loans - Internal Risk Rating Of Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Total loans	$ 424,805	$ 400,056
Pass [Member]
Total loans		397,281
Special Mention [Member]
Total loans		2,686
Substandard [Member]
Total loans		89
CRE [Member]
Total loans	87,295	80,506
CRE [Member] | Pass [Member]
Total loans		77,820
CRE [Member] | Special Mention [Member]
Total loans		2,686
MF [Member]
Total loans	7,679	8,185
MF [Member] | Pass [Member]
Total loans		8,185
C+I [Member]
Total loans	24,875	24,059
C+I [Member] | Pass [Member]
Total loans		24,059
ADL [Member]
Total loans	19,255	18,490
ADL [Member] | Pass [Member]
Total loans		18,490
RES [Member]
Total loans	264,477	251,466
RES [Member] | Pass [Member]
Total loans		251,382
RES [Member] | Substandard [Member]
Total loans		84
HELOC [Member]
Total loans	12,614	10,161
HELOC [Member] | Pass [Member]
Total loans		10,161
CON [Member]
Total loans	$ 8,610	7,189
CON [Member] | Pass [Member]
Total loans		7,184
CON [Member] | Substandard [Member]
Total loans		$ 5

XML

Loan Servicing - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Transfers and Servicing [Abstract]
Transferred financial assets principal amount outstanding	$ 34,100,000		$ 34,100,000		$ 36,000,000
Loan servicing income	$ 9,000	$ 27,000	$ 47,000	$ 116,000

XML

Loan Servicing - Summary Of Activity In Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Transfers and Servicing [Abstract]
Beginning Balance	$ 350	$ 364	$ 357	$ 322
Additions		1		6
Payoffs	(2)	(6)	(5)	(24)
Change in fair value due to change in assumptions	(10)	10	(14)	65
Ending Balance	$ 338	$ 369	$ 338	$ 369

XML

Deposits - Deposit Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Deposits [Abstract]
NOW and demand deposits	$ 174,284	$ 204,739
Money market deposits	85,825	60,931
Savings deposits	66,919	54,954
Time deposits of $250,000 and greater	13,980	7,796
Time deposits less than $250,000	70,777	53,943
Total deposits	$ 411,785	$ 382,363

XML

Deposits - Time Deposit Maturities (Detail) $ in Thousands	Sep. 30, 2023 USD ($)
Deposits [Abstract]
2023	$ 26,320
2024	41,523
2025	12,401
2026	3,212
2027	1,141
2028	160
Total	$ 84,757

XML

Deposits - Additional information (Detail) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Time Deposits [Member]
Brokered time deposits	$ 23.6	$ 18.1
Savings Deposits [Member]
Brokered time deposits	$ 20.6	$ 0.0

XML

Borrowings - Schedule of Federal Home Loan Bank Advances by Branch of FHLB Bank (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Principal Amounts	$ 44,877	$ 99,397
Federal Home Loan Bank Advances One [Member]
Principal Amounts	$ 42,209	$ 96,729
Maturity Dates	2023	2023
Federal Home Loan Bank Advances One [Member] | Minimum [Member]
Interest Rates	5.22%	0.44%
Federal Home Loan Bank Advances One [Member] | Maximum [Member]
Interest Rates	5.57%	4.38%
Federal Home Loan Bank Advances Two [Member]
Principal Amounts	$ 800	$ 800
Maturity Dates	2024	2024
Interest Rates	0.00%	0.00%
Federal Home Loan Bank Advances Three [Member]
Principal Amounts	$ 520	$ 520
Maturity Dates	2025	2025
Interest Rates	0.00%	0.00%
Federal Home Loan Bank Advances Four [Member]
Principal Amounts	$ 718	$ 718
Maturity Dates	2028	2028
Interest Rates	0.00%	0.00%
Federal Home Loan Bank Advances Five [Member]
Principal Amounts	$ 200	$ 200
Maturity Dates	2030	2030
Interest Rates	0.00%	0.00%
Federal Home Loan Bank Advances Six [Member]
Principal Amounts	$ 430	$ 430
Maturity Dates	2031	2031
Interest Rates	0.00%	0.00%

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Borrowings - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Jul. 25, 2023	Dec. 31, 2022
Banks unused remaining borrowing capacity	$ 99,200		$ 36,500
Advances through FLHB	44,877		99,397
Federal home loan bank maximum borrowing capacity	3,000		3,000
Fed Funds Borrowing [Member]
Borrowing capacity	5,000		5,000
Bank Term Funding Program [Member]
Borrowing capacity	7,300	$ 25,000
Fixed annual rate		5.48%
Borrower-In-Custody of Collateral Program [Member]
Borrowing capacity	55,500
New England Program [Member]
Advances through FLHB	$ 2,700		$ 2,700
Interest rate	0.00%		0.00%

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Off-Balance Sheet Credit Exposures - Schedule of Notional Amounts of Financial Instruments with Off-Balance Sheet Credit Risk (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Unadvanced portions of loans [Member]
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit risk	$ 65,773	$ 44,929
Commitments to originate loans [Member]
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit risk	$ 7,977	16,134
Standby Letters of Credit [Member]
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit risk		$ 302

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Off-Balance Sheet Credit Exposures - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Credit Loss [Abstract]
Allowance for credit losses for off-balance sheet	$ 413,000		$ 413,000		$ 18,000
Provision for credit losses for off-balance sheet	$ 90,000	$ 0	$ 105,000	$ 0

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Employee Benefits - Additional information (Detail) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Defined Benefit Plan, Plan Assets, Contributions by Employer		$ 59,000	$ 56,000	$ 163,000	$ 153,000
Pension Cost (Reversal of Cost)	$ (14,000)					$ 1,300,000
Funded percentage		100.00%		100.00%
Withdrawal liability amount						1,500,000
Withdrawal Liability Paid						200,000
Deferred Compensation Liability, Current and Noncurrent		$ 1,990,000		$ 1,990,000		1,830,000
Pentegra DB Plan [Member]
Pension Cost (Reversal of Cost)		0	50,000	(14,000)	150,000
Salary Continuation Plan [Member] | Supplemental Employee Retirement Plan [Member]
Liability, Defined Benefit Plan		$ 717,000		$ 717,000		660,000
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate		5.00%		5.00%
Employee salary incremental percent				3.00%
Defined Contribution Plan, Cost		$ 32,000	20,000	$ 99,000	61,000
Deferred Directors Supplemental Retirement Plan [Member] | Supplemental Employee Retirement Plan [Member]
Pension Cost (Reversal of Cost)		19,000	$ 22,000	57,000	$ 54,000
Liability, Defined Benefit Plan		$ 563,000		$ 563,000		$ 537,000
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate		6.25%		6.25%		6.25%
Defined Contribution Plan, Cost				$ 20,000
Previous final base fee, percentage				70.00%
Revised fixed annual retirement benefits, payable				$ 200,000
Deferred Compensation Liability, Current and Noncurrent		$ 675,000		$ 675,000		$ 553,000

XML

Stock Based Compensation - Additional Information (Detail) - USD ($)						3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 18, 2024	Nov. 18, 2023	Jun. 01, 2023	May 25, 2023	Nov. 18, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares committed to be released each year, ESOP						11,517		11,517		9,966	[1]
Unearned compensation for ESOP						$ 4,488,000		$ 4,488,000		$ 2,637,000
Stock options granted, outstanding				249,144				249,144		0
Share price			$ 7.99					$ 7.99		$ 0
Share based expense recognized						102,000	$ 98,000	$ 298,000	$ 295,000
Income tax (benefit) expense						427,000	(39,000)	$ 667,000	(163,000)
Weighted average future recognition period								1 year 1 month 6 days		1 year 10 months 24 days
Restricted stock awards granted			2,478					2,478		0
Fair value related to grant			$ 20,000
Restricted Stock Awards [Member] | Directors and Members [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award,					98,850
Share price								$ 11.95
Total fair value related to stock options granted								$ 1,200,000
Restricted Stock Awards [Member] | Scenario Forecast [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock awards time-vest	50.00%	50.00%
Minimum [Member] | Restricted Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issued stock option granted, term								3 years
2021 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unearned compensation for ESOP						452,000		$ 452,000		$ 729,000
Common stock shares issued during period, new issues								348,802
Issued stock option granted, term								10 years
Income tax (benefit) expense						(27,000)	(27,000)	$ (80,000)	(77,000)
2021 Equity Incentive Plan [Member] | Director [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unearned compensation for ESOP						660,000		660,000
Share based expense recognized						67,000	0	88,000	0
Income tax (benefit) expense						$ (18,000)	0	$ (24,000)	0
Weighted average future recognition period								2 years 8 months 12 days
2021 Equity Incentive Plan [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Payment Arrangement, Exercise of Option								249,144
Stock Issued During Period, Shares, Restricted Stock Award,								99,657
First Seacoast Bank Employee Stock Ownership Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares committed to be released each year, ESOP						15,354		15,354
Employee stock option compensation recognized						$ 29,000	$ 32,000	$ 100,000	$ 94,000
Unearned compensation for ESOP						4,000,000		4,000,000		1,900,000
Employee stock option unallocated share fair value						2,800,000		$ 2,800,000		1,800,000
Employee stock option plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock repurchase								383,851
Percentage of purchase price common stock								100.00%
Remaining principal balance of debt						$ 4,300,000		$ 4,300,000		$ 2,000,000

[1] Adjusted for conversion of First Seacoast Bancorp, Inc.

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Stock Based Compensation - Schedule of Company Compensation Expense for the ESOP (Detail) - shares	Sep. 30, 2023	Dec. 31, 2022	[1]
Share-Based Payment Arrangement [Abstract]
Allocated	39,864	29,898
Committed to be allocated	11,517	9,966
Unallocated	372,334	159,451
Total	423,715	199,315

[1] Adjusted for conversion of First Seacoast Bancorp, Inc.

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Stock Based Compensation - Summary of Stock Options Outstanding (Detail) - $ / shares		9 Months Ended	12 Months Ended
	May 25, 2023	Sep. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Granted	249,144	249,144	0
Stock options at end of period		249,144
Granted		$ 8.06
Stock options at end of period		$ 8.06
Granted		9 years 8 months 12 days
Stock options at end of period		9 years 8 months 12 days
Date of grant		May 25, 2023
Vesting period		3 years
Expiration date		May 25, 2033
Expected volatility		27.80%
Expected term		6 years 6 months
Expected dividend yield		0.00%
Expected forfeiture rate		0.00%
Risk free interest rate		3.90%
Fair value		$ 3

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Stock Based Compensation - Summary of Non-vested Restricted Shares Outstanding (Detail) - $ / shares		9 Months Ended	12 Months Ended
	Jun. 01, 2023	Sep. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Non-vested at beginning of period		64,785	98,850
Granted	2,478	2,478	0
Vested		0	(32,393)
Forfeited		0	(1,672)
Non-vested at end of period		67,263	64,785
Non-vested at beginning of period		$ 11.95	$ 11.95
Share price	$ 7.99	7.99	0
Vested		0	11.95
Forfeited		0	11.95
Non-vested at end of period		$ 11.8	$ 11.95

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Leases - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Lessee Lease Description [Line Items]
Future lease payments	$ 706,000		$ 706,000
Loss on disposition of equipment			$ (2,000)
Branch Office Expires in August 2027
Lessee Lease Description [Line Items]
Lease expiration month and year			2027-08
Future lease payments	161,000		$ 161,000
Operating lease expense	0	$ 8,000	$ 27,000	$ 24,000
ATM Related Equipment Expires in August 2030
Lessee Lease Description [Line Items]
Lease expiration month and year			2030-08
Future lease payments	529,000		$ 529,000
Operating lease expense	6,000	$ 0	$ 6,000	$ 0
Loss on disposition of equipment	$ (2,000)
Branch Office and Certain Equipment [Member]
Lessee Lease Description [Line Items]
Operating leases expiration beginning year			2024
Operating leases expiration ending year			2031
Operating lease option to extend			true
Operating lease, renewal term	4 years		4 years

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Leases - Summary of Right-of-Use Asset and Net Lease Liability (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Right-of-use asset	$ 612	$ 202
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Net lease liability	$ 612	$ 202
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities

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Leases - Components of Operating Lease Cost and Other Related Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease cost	$ 16	$ 10	$ 38	$ 42
Total operating lease cost	16	10	38	42
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases	$ 16	$ 10	$ 38	$ 42
Weighted average lease term remaining (in years)	6 years 21 days	4 years 7 months 2 days	6 years 21 days	4 years 7 months 2 days
Weighted average discount rate	4.59%	3.28%	4.59%	3.28%

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Leases - Schedule of Total Minimum Lease Payments Due In Future Periods For Lease Agreements (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Remainder of 2023	$ 32
2024	125
2025	122
2026	120
2027	307
Total minimum lease payments	706
Less: interest	(94)
Net lease liability	$ 612	$ 202

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Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disclosure Of Other Comprehensive Income Loss [Abstract]
Gains on sale of securities available-for-sale				$ (52)
Tax effect				14
Net (loss) income				(38)
Net amortization of bond premiums	$ 222	$ 264	$ 712	751
Tax effect	(60)	(71)	(191)	(203)
Net (loss) income	162	193	521	548
Gains on termination of interest rate swaps			(849)
Tax effect			230
Net (loss) income			(619)
Net interest expense on swaps		(41)		(34)
Tax effect		11		(9)
Net (loss) income		(30)		25
Total reclassification adjustments	$ 162	$ 163	$ (98)	$ 485

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Other Comprehensive Loss - Summary of Changes in Component of AOCI (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Balance at the beginning of the period	$ (9,922)	$ (8,083)	$ (9,727)	$ 721
Other comprehensive (loss) income before reclassification	(5,023)	(4,903)	(4,958)	(14,029)
Amounts reclassified from AOCI	162	163	(98)	485
Other comprehensive loss	(4,861)	(4,740)	(5,056)	(13,544)
Balance at the end of the period	(14,783)	(12,823)	(14,783)	(12,823)
Net Unrealized (Losses) Gains on AFS Securities [Member]
Balance at the beginning of the period	(9,922)	(8,626)	(10,428)	575
Other comprehensive (loss) income before reclassification	(5,023)	(5,153)	(4,876)	(14,671)
Amounts reclassified from AOCI	162	193	521	510
Other comprehensive loss	(4,861)	(4,960)	(4,355)	(14,161)
Balance at the end of the period	$ (14,783)	(13,586)	(14,783)	(13,586)
Net Unrealized Gains (Losses) on Cash Flow Hedges [Member]
Balance at the beginning of the period		543	701	146
Other comprehensive (loss) income before reclassification		250	(82)	642
Amounts reclassified from AOCI		(30)	(619)	(25)
Other comprehensive loss		220	$ (701)	617
Balance at the end of the period		$ 763		$ 763

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Regulatory Matters - Schedule of Regulatory Capital Requirements (Detail) $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Actual, Total Capital (to risk- weighted assets)	$ 65,432	$ 52,475
Actual, Tier 1 Capital (to risk- weighted assets)	61,625	48,821
Actual, Tier 1 Capital (to average assets)	61,625	48,821
Actual, Common Equity Tier 1 (to risk-weighted assets)	$ 61,625	$ 48,821
Actual Ratio, Total Capital (to risk- weighted assets)	0.1792	0.1553
Actual Ratio, Tier 1 Capital (to risk- weighted assets)	0.1688	0.1445
Actual Ratio, Tier 1 Capital (to average assets)	0.1112	0.0920
Actual Ratio, Common Equity Tier 1 (to risk-weighted assets)	0.1688	0.1445
Minimum Capital Requirement, Total Capital (to risk-weighted assets)	$ 29,203	$ 27,028
Minimum Capital Requirement, Tier 1 Capital (to risk-weighted assets)	21,902	20,271
Minimum Capital Requirement, Tier 1 Capital (to average assets)	22,174	21,224
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets)	$ 16,427	$ 15,203
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets)	0.0800	0.0800
Minimum Capital Requirement Ratio, Tier 1 Capital (to risk-weighted assets)	0.0600	0.0600
Minimum Capital Requirement Ratio, Tier 1 Capital (to average assets)	0.0400	0.0400
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets)	4.50%	4.50%
Minimum Capital Required to be Well Capitalized, Total Capital (to risk-weighted assets)	$ 36,504	$ 33,785
Minimum Capital Required to be Well Capitalized, Tier 1 Capital (to risk-weighted assets)	29,203	27,028
Minimum Capital Required to be Well Capitalized, Tier 1 Capital (to average assets)	27,718	26,530
Minimum Capital Required to be Well Capitalized, Common Equity Tier 1 (to risk-weighted assets)	$ 23,727	$ 21,960
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets)	0.1000	0.1000
Minimum Capital Requirement Ratio, Tier 1 Capital (to risk-weighted assets)	0.0800	0.0800
Minimum Capital Requirement Ratio, Tier 1 Capital (to average assets)	0.0500	0.0500
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets)	0.0650	0.0650
Fully Phased In [Member]
Minimum Capital Requirement, Total Capital (to risk-weighted assets)	$ 38,329	$ 35,474
Minimum Capital Requirement, Tier 1 Capital (to risk-weighted assets)	31,028	28,717
Minimum Capital Requirement, Tier 1 Capital (to average assets)	22,174	21,224
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets)	$ 25,552	$ 23,649
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets)	0.1050	0.1050
Minimum Capital Requirement Ratio, Tier 1 Capital (to risk-weighted assets)	0.0850	0.0850
Minimum Capital Requirement Ratio, Tier 1 Capital (to average assets)	0.0400	0.0400
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets)	7.00%	7.00%

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Treasury Stock - Additional Information (Detail) - shares	Sep. 30, 2023	Dec. 31, 2022	Nov. 18, 2022	Sep. 23, 2020
Equity Class Of Treasury Stock [Line Items]
Vested restricted stock award surrendered in lieu of cash payment			496
Treasury Stock, Shares outstanding	114,899	114,899
Common Stock [Member]
Equity Class Of Treasury Stock [Line Items]
Percentage of repurchase of Common Stock				2.20%
Number of shares authorized for repurchase		114,403
Common Stock [Member] | Stockholders other than First Seacoast Bancorp, MHC [Member]
Equity Class Of Treasury Stock [Line Items]
Equity method investment ownership percentage				5.00%
Common Stock [Member] | Maximum [Member]
Equity Class Of Treasury Stock [Line Items]
Number of shares authorized for repurchase				114,403

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Derivatives and Hedging Activities - Additional Information (Detail)		3 Months Ended		9 Months Ended
	Jan. 17, 2023 USD ($)	Sep. 30, 2023 USD ($) Derivative	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) Derivative	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Derivatives Fair Value [Line Items]
Interest rate swaps				$ (961,000)	$ 846,000
Cash collateral from counterparties		$ 0		0		$ 535,000
Cash in collateral returned		7,168,000		7,168,000		8,250,000
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities)		447,000		447,000
Derivatives liability		0		0		0
Interest Rate Swap 2021 [Member]
Derivatives Fair Value [Line Items]
Gain on derivative	$ 849,000
Cash in collateral returned	$ 536,000
Balance Sheet Hedges on 90-day Advances from FHLB [Member]
Derivatives Fair Value [Line Items]
Liabilities		10,000,000	$ 10,000,000	10,000,000	10,000,000
Interest Rate Swap Contracts and Customer Loan Swaps [Member]
Derivatives Fair Value [Line Items]
Cash collateral from counterparties		786,000		786,000		535,000
Designated as Hedging Instrument [Member]
Derivatives Fair Value [Line Items]
Designated hedged items		25,000,000		25,000,000
Derivative assets, notional amount		25,000,000		25,000,000
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivatives Fair Value [Line Items]
Notional amount						10,000,000
Interest rate swaps		$ 0	$ 302,000	$ (112,000)	$ 846,000
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Assets [Member]
Derivatives Fair Value [Line Items]
Interest rate swap derivative asset						961,000
Designated as Hedging Instrument [Member] | Interest Rate Swap 2021 [Member]
Derivatives Fair Value [Line Items]
Notional amount						5,000,000
Cash Flow Hedges on 90-day Advances from FHLB [Member]
Derivatives Fair Value [Line Items]
Liabilities						10,000,000
Cash Flow Hedges on 90-day Advances from FHLB [Member] | Interest Rate Swap [Member]
Derivatives Fair Value [Line Items]
Number of notional interest rate swaps | Derivative		2		2
Cash Flow Hedges on 90-day Advances from FHLB [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap 2021 [Member]
Derivatives Fair Value [Line Items]
Notional amount		$ 5,000,000		$ 5,000,000
Fair Value Hedging [Member]
Derivatives Fair Value [Line Items]
Fair Value Hedges						$ 0
Remaining maturity		2 years 8 months 1 day		2 years 8 months 1 day
Average fixed interest rate		3.99%		3.99%
Fixed annual rate		5.19%		5.19%
Fair Value Hedging [Member] | Fixed Rate Assets [Member]
Derivatives Fair Value [Line Items]
Amortized cost basis of the closed portfolios used in hedging relationships		$ 63,700,000		$ 63,700,000
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities)		$ (447,000)		$ (447,000)

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Derivatives and Hedging Activities - Summary of Cash Flow Hedges Associated with Interest Rate Risk Management Activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2023
Cash Flow Hedges on 90-day Advances from FHLB [Member]
Derivatives, Fair Value [Line Items]
Other Liabilities	$ 10,000
Designated as Hedging Instrument [Member] | Interest Rate Swap 2020 [Member]
Derivatives, Fair Value [Line Items]
Start Date	Apr. 13, 2020
Maturity Date	Apr. 13, 2025
Rate	0.68%
Derivative liabilities, notional amount	$ 5,000
Other Assets	$ 431
Designated as Hedging Instrument [Member] | Interest Rate Swap 2021 [Member]
Derivatives, Fair Value [Line Items]
Start Date	Apr. 13, 2021
Maturity Date	Apr. 13, 2026
Rate	0.74%
Derivative liabilities, notional amount	$ 5,000
Other Assets	530
Designated as Hedging Instrument [Member] | Interest Rate Swap 2021 [Member] | Cash Flow Hedges on 90-day Advances from FHLB [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities, notional amount		$ 5,000
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities, notional amount	10,000
Other Assets	$ 961

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Derivatives and Hedging Activities - Summary of the Effect of Cash Flow Hedge Accounting (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivatives Fair Value [Line Items]
Location and Amount of Gain or Loss Recognized in Consolidated Statements of (Loss) Income	$ 2,596	$ 427	$ 6,047	$ 818
Amount Reclassified from AOCI into Expense [Member]
Derivatives Fair Value [Line Items]
Location and Amount of Gain or Loss Recognized in Consolidated Statements of (Loss) Income		$ 41		$ 34

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Derivatives and Hedging Activities - Summary of Balance Sheet Related to Cumulative Basis Adjustment for Fair Value Hedges (Detail) $ in Thousands	Sep. 30, 2023 USD ($)
Derivatives Fair Value [Line Items]
Carrying Amount of Hedged Assets/(Liabilities)	$ 24,553
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	447
Loans [Member]
Derivatives Fair Value [Line Items]
Carrying Amount of Hedged Assets/(Liabilities)	24,553
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	$ 447

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Derivatives and Hedging Activities - Summary of Fair Values of Derivative Instruments in the Company's Consolidated Balance SheetsSummary of Fair Values of Derivative Financial Instruments Classification on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands		Sep. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets, fair value		$ 605
Interest Rate Contract [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets, fair value	[1]	447	$ 961
Derivatives Designated as Hedging Instruments [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets, notional amount		25,000
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Contract [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets, fair value		447	961
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets, notional amount		25,000
Derivative assets, fair value		$ 447
Hedged Asset, Statement of Financial Position [Extensible Enumeration]		Other assets
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets, notional amount			10,000
Derivative assets, fair value			$ 961
Hedged Asset, Statement of Financial Position [Extensible Enumeration]			Other assets
Derivatives Not Designated as Hedging Instruments [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets, fair value		$ 158
Derivative liabilities, fair value		158
Derivatives Not Designated as Hedging Instruments [Member] | Customer Loan Swaps [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets, notional amount		4,799
Derivative assets, fair value		$ 158
Hedged Asset, Statement of Financial Position [Extensible Enumeration]		Other assets
Derivative liabilities, notional amount		$ 4,799
Derivative liabilities, fair value		$ 158
Hedged Liability, Statement of Financial Position [Extensible Enumeration]		Other liabilities

[1] Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement with the counterparty and settles collateral on a net basis for all contracts.

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Derivatives and Hedging Activities - Summary of Derivative Financial Instruments Not Designated as Hedging Instruments on Consolidated Statements of (Loss) Income (Detail) - Derivatives Not Designated as Hedging Instruments [Member] - Customer Loan Swaps [Member] - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain Recognized in Income	$ (12)	$ 83
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest and Fee Income, Loans and Leases	Interest and Fee Income, Loans and Leases

XML

Derivatives and Hedging Activities - Summary of Derivative Position offset in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands		Sep. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Assets, Gross Amounts Recognized		$ 605
Derivative Assets, Net Amounts Recognized		605
Derivative Assets, Cash Collateral Pledged (Received)	[1]	447
Derivative Asset, Net Amount		158
Interest Rate Contract [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Assets, Gross Amounts Recognized	[2]	447	$ 961
Derivative Assets, Net Amounts Recognized	[2]	447	961
Derivative Assets, Cash Collateral Pledged (Received)	[1],[2]	447	535
Derivative Liabilities, Net Amount	[2]		$ 426
Customer Loan Swaps - Commercial Customer [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Assets, Gross Amounts Recognized	[3]	158
Derivative Assets, Net Amounts Recognized	[3]	158
Derivative Asset, Net Amount	[3]	158
Customer Loan Swaps - Dealer Bank [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Liabilities, Gross Amounts Recognized	[3]	158
Derivative Liabilities, Net Amounts Recognized	[3]	158
Derivative Liabilities, Cash Collateral Pledged (Received)	[1],[3]	$ 158

[1] The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated balance sheets.

[2] Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement with the counterparty and settles collateral on a net basis for all contracts.

[3] The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. The Company does not post collateral to its commercial customers as part of its contract.

XML

Fair Values of Assets and Liabilities - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2023		Dec. 31, 2022
Securities available-for-sale:
Securities available-for-sale, at fair value	$ 102,552		$ 106,100
U.S. Government-sponsored enterprises obligations [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	1,769		1,826
U.S. Government agency small business administration pools guaranteed by SBA [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	7,244	[1]	8,359
Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	5,592	[1]	6,222
Residential mortgage backed securities [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	20,732	[1]	21,823
Municipal bonds [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	59,642		62,416
Corporate debt [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	486		497
Corporate subordinated debt [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	7,087		4,957
Fair Value, Measurements, Recurring [Member] | U.S. Government-sponsored enterprises obligations [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	1,769		1,826
Fair Value, Measurements, Recurring [Member] | U.S. Government agency small business administration pools guaranteed by SBA [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	7,244		8,359
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	5,592		6,222
Fair Value, Measurements, Recurring [Member] | Residential mortgage backed securities [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	20,732		21,823
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	59,642		62,416
Fair Value, Measurements, Recurring [Member] | Corporate debt [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	486		497
Fair Value, Measurements, Recurring [Member] | Corporate subordinated debt [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	7,087		4,957
Fair Value, Measurements, Recurring [Member] | Derivative [Member]
Other assets:
Other assets, at fair value	605		961
Other liabilities:
Other liabilities, at fair value	158
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government-sponsored enterprises obligations [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	1,769		1,826
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government agency small business administration pools guaranteed by SBA [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	7,244		8,359
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized mortgage obligations issued by the FHLMC, FNMA and GNMA [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	5,592		6,222
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Residential mortgage backed securities [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	20,732		21,823
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal bonds [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	59,642		62,416
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate debt [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	486		497
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate subordinated debt [Member]
Securities available-for-sale:
Securities available-for-sale, at fair value	7,087		4,957
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative [Member]
Other assets:
Other assets, at fair value	605		961
Other liabilities:
Other liabilities, at fair value	158
Fair Value, Measurements, Recurring [Member] | Mortgage servicing rights [Member]
Other assets:
Other assets, at fair value	338		357
Fair Value, Measurements, Recurring [Member] | Mortgage servicing rights [Member] | Fair Value, Inputs, Level 3 [Member]
Other assets:
Other assets, at fair value	$ 338		$ 357

[1] Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans.

XML

Fair Values of Assets and Liabilities - Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] - Mortgage servicing rights [Member] - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	[1]	$ 357	$ 322
Included in net (loss) income	[1]	(19)	47
Ending Balance	[1]	$ 338	$ 369

[1] Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of (loss) income.

XML

Fair Values of Assets and Liabilities - Summary of Significant Unobservable Inputs used in Level 3 Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Mortgage servicing rights [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights	[1]	$ 338	$ 357	$ 369	$ 322
Prepayment Rate [Member] | Mortgage servicing rights [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing Asset, Valuation Technique [Extensible List]		us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Mortgage Servicing Rights		$ 338	$ 357
Prepayment Rate [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights, Measuring Inputs		0.0566	0.0648
Prepayment Rate [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights, Measuring Inputs		0.1352	0.2349
Prepayment Rate [Member] | Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights, Measuring Inputs	[2]	0.0670	0.0778
Fair value valuation techniques		Prepayment Rate	Prepayment Rate
Discount Rate [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights, Measuring Inputs		0.1013	0.095
Discount Rate [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights, Measuring Inputs		0.1013	0.095
Discount Rate [Member] | Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights, Measuring Inputs	[2]	0.1013	0.0950
Fair value valuation techniques		Discount Rate	Discount Rate
Delinquency Rate [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights, Measuring Inputs		0.019	0.0213
Delinquency Rate [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights, Measuring Inputs		0.0248	0.0279
Delinquency Rate [Member] | Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights, Measuring Inputs	[2]	0.0200	0.0224
Fair value valuation techniques		Delinquency Rate	Delinquency Rate
Default Rate [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights, Measuring Inputs		0.0014	0.0014
Default Rate [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights, Measuring Inputs		0.0018	0.002
Default Rate [Member] | Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage Servicing Rights, Measuring Inputs	[2]	0.0015	0.0015
Fair value valuation techniques		Default Rate	Default Rate

[1] Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of loan servicing fee income in the Company’s consolidated statements of (loss) income.

[2] Unobservable inputs for mortgage servicing rights were weighted by loan amount.

XML

Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-financial assets and liabilities measured at fair value on a recurring basis	$ 0
Foreclosed assets	0	$ 0
Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Liabilities measured at fair value	$ 0	$ 0

XML

Fair Values of Assets and Liabilities - Fair Value Measurements, Recurring and Nonrecurring (Detail) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial Assets:
Cash and due from banks	$ 7,168	$ 8,250
Interest-bearing time deposits with other banks		747
Federal Home Loan Bank stock	1,972	3,502
Bank-owned life insurance	4,642	4,561
Loans, net	424,136	398,924
Accrued interest receivable	2,130	1,988
Financial Liabilities:
Deposits	411,785	382,363
Advances from Federal Home Loan Bank	44,877	99,397
Advances from Federal Reserve Bank	25,000
Mortgagors’ tax escrow	2,381	938
Accrued interest payable	509	95
Cash and due from banks [Member]
Financial Assets:
Financial Assets, Fair Value Disclosure	7,168	8,250
Interest-bearing time deposits with other banks [Member]
Financial Assets:
Financial Assets, Fair Value Disclosure		747
Federal Home Loan Bank stock [Member]
Financial Assets:
Financial Assets, Fair Value Disclosure	1,972	3,502
Bank-owned life insurance [Member]
Financial Assets:
Financial Assets, Fair Value Disclosure	4,642	4,561
Loans, net [Member]
Financial Assets:
Financial Assets, Fair Value Disclosure	372,797	361,402
Accrued interest receivable [member]
Financial Assets:
Financial Assets, Fair Value Disclosure	2,130	1,988
Deposits [Member]
Financial Liabilities:
Financial Liabilities Fair Value Disclosure	409,866	379,714
Federal Home Loan Bank Borrowings [Member]
Financial Liabilities:
Financial Liabilities Fair Value Disclosure	44,435	97,675
Federal Reserve Bank Advances [Member]
Financial Liabilities:
Financial Liabilities Fair Value Disclosure	25,024
Mortgagors' tax escrow [Member]
Financial Liabilities:
Financial Liabilities Fair Value Disclosure	2,381	938
Accrued interest payable [member]
Financial Liabilities:
Financial Liabilities Fair Value Disclosure	509	95
Fair Value, Inputs, Level 1 [Member] | Cash and due from banks [Member]
Financial Assets:
Financial Assets, Fair Value Disclosure	7,168	8,250
Fair Value, Inputs, Level 1 [Member] | Accrued interest receivable [member]
Financial Assets:
Financial Assets, Fair Value Disclosure	2,130	1,988
Fair Value, Inputs, Level 1 [Member] | Deposits [Member]
Financial Liabilities:
Financial Liabilities Fair Value Disclosure	327,029	320,624
Fair Value, Inputs, Level 1 [Member] | Accrued interest payable [member]
Financial Liabilities:
Financial Liabilities Fair Value Disclosure	509	95
Fair Value, Inputs, Level 2 [Member] | Interest-bearing time deposits with other banks [Member]
Financial Assets:
Financial Assets, Fair Value Disclosure		747
Fair Value, Inputs, Level 2 [Member] | Federal Home Loan Bank stock [Member]
Financial Assets:
Financial Assets, Fair Value Disclosure	1,972	3,502
Fair Value, Inputs, Level 2 [Member] | Bank-owned life insurance [Member]
Financial Assets:
Financial Assets, Fair Value Disclosure	4,642	4,561
Fair Value, Inputs, Level 2 [Member] | Deposits [Member]
Financial Liabilities:
Financial Liabilities Fair Value Disclosure	82,837	59,090
Fair Value, Inputs, Level 2 [Member] | Federal Home Loan Bank Borrowings [Member]
Financial Liabilities:
Financial Liabilities Fair Value Disclosure	44,435	97,675
Fair Value, Inputs, Level 2 [Member] | Federal Reserve Bank Advances [Member]
Financial Liabilities:
Financial Liabilities Fair Value Disclosure	25,024
Fair Value, Inputs, Level 2 [Member] | Mortgagors' tax escrow [Member]
Financial Liabilities:
Financial Liabilities Fair Value Disclosure	2,381	938
Fair Value, Inputs, Level 3 [Member] | Loans, net [Member]
Financial Assets:
Financial Assets, Fair Value Disclosure	$ 372,797	$ 361,402

XML

Subsequent Events - Additional Information (Details) - USD ($)		1 Months Ended
	Nov. 01, 2023	Oct. 31, 2023	Sep. 30, 2023		Dec. 31, 2022
Subsequent Event [Line Items]
Securities available-for-sale, at fair value			$ 102,552,000		$ 106,100,000
Residential mortgage backed securities [Member]
Subsequent Event [Line Items]
Securities available-for-sale, at fair value			20,732,000	[1]	21,823,000
Municipal bonds [Member]
Subsequent Event [Line Items]
Securities available-for-sale, at fair value			$ 59,642,000		$ 62,416,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Securities available-for-sale, at fair value		$ 25,000,000
Average yield on investment purchased		6.37%
FHLB loan borrowed	$ 25,000,000
FHLB maturity date	May 01, 2024
FHLB interest rate	4.48%
Subsequent Event [Member] | Derivatives Designated as Hedging Instruments [Member]
Subsequent Event [Line Items]
Notional amount on designated fair value hedge	$ 25,000,000
Debt instrument maturity period	3 years
Interest rate of fair value hegde	$ 5.31
Fair value hedge maturity date	Nov. 01, 2023
Debt instrument fixed interest rate	4.67%
Subsequent Event [Member] | Residential mortgage backed securities [Member]
Subsequent Event [Line Items]
Securities available-for-sale, at fair value		$ 10,000,000
Subsequent Event [Member] | Municipal bonds [Member]
Subsequent Event [Line Items]
Securities available-for-sale, at fair value		10,000,000
Subsequent Event [Member] | Small Business Administration [Member]
Subsequent Event [Line Items]
Securities available-for-sale, at fair value		$ 5,000,000

[1] Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans.