First Seacoast Bancorp Reports Strong Revenue Growth in Latest Quarter
Segments of revenue
First Seacoast Bancorp, Inc. (FSEA) reported total interest and dividend income of $5.16 million for the three months ended September 30, 2023, compared to $4.22 million in the same period last year. This represents a significant increase of 22% year-over-year. The company's interest and fees on loans contributed $4.28 million to the total revenue, showing a growth of 21% compared to the previous year's $3.54 million. Additionally, interest on debt securities increased by 30% to $828 thousand, compared to $637 thousand in the same period last year. Dividends also saw a slight increase, reaching $54 thousand, compared to $37 thousand in the previous year.
First Seacoast Bancorp demonstrated strong revenue growth in the latest quarter, driven primarily by an increase in interest and dividend income. The company's interest and fees on loans showed a significant improvement, reflecting the successful execution of its lending activities. The growth in interest on debt securities also contributed to the overall revenue increase. Management attributed the positive performance to the company's focus on originating higher yielding commercial real estate and commercial and industrial loans, which have proven to be lucrative.
While First Seacoast Bancorp reported strong revenue growth, it is important to note that the company experienced a net loss of $987 thousand for the nine months ended September 30, 2023. This loss can be attributed to various factors, including the cumulative change in accounting principle and the gain on termination of interest rate swaps. The provision for credit losses also impacted the company's financial performance.
First Seacoast Bancorp's revenue growth in the latest quarter is noteworthy, especially considering the challenging economic environment. The company's strategic focus on higher yielding loans has proven to be successful, contributing to the overall positive performance. Additionally, the gain on termination of interest rate swaps had a significant impact on the company's financials, resulting in a decrease in expenses.
First Seacoast Bancorp reported strong revenue growth in the latest quarter, driven by an increase in interest and dividend income. The company's interest and fees on loans and interest on debt securities showed significant improvements. Despite a net loss for the nine-month period, the company's strategic focus on higher yielding loans has contributed to its positive performance. However, challenges such as the cumulative change in accounting principle and provision for credit losses should be closely monitored. Overall, First Seacoast Bancorp's revenue growth reflects its successful execution of lending activities and strategic initiatives.