FSEA

First Seacoast is a ~$599M-asset federally chartered savings institution that has now lost money in four consecutive fiscal years: -$565K (2022), -$10.7M (2023), -$513K (2024) and -$845K (2025). FY2025 net income fell another 64.7% YoY and diluted EPS sank to -$0.23 (-91.7% YoY), producing a negative -1.3% return on equity. This is not a one-off stumble — the only profitable year in the provided five-year history was FY2021. The franchise is growing its balance sheet (assets +3.2%, equity +2.4%) but is not converting that growth into earnings, which is the core problem for a spread-lender.

The filing language explains why and warns it may persist. Management flags 'inflation and changes in the interest rate environment that reduce our margins and yields, our mortgage banking revenues, the fair value of financial instruments,' plus 'our ability to access cost-effective funding' and 'changes in the level and direction of loan delinquencies and write-offs.' For a small thrift heavily exposed to residential and commercial real estate, a compressed net interest margin in a higher-rate funding environment is precisely the dynamic that has kept it unprofitable, and nothing in the disclosure signals a near-term inflection.