What changed in this filing

/stocks — the workspaceLOADING

Item 5. Market for Registrant’s Common Equity

2026-03-20 compared with 2025-03-21 · 320 added, 393 removed, 1761 unchanged (29% of the section changed)

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On February 7, 2025, the expiration date of the program was extended to December 3, 2025.

On September 19, 2025, the expiration date of the program was extended to June 3, 2026.

The Company may suspend or discontinue the program at any time.

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(Release) provision for credit losses

Net interest and dividend income after provision for credit losses

Net interest and dividend income after (release) provision for credit losses

Non-interest income (loss)

Non-interest expense

Income (loss) before income tax expense (benefit)

Income tax expense (benefit)

Share Data (1) :

(Loss) income before income tax (benefit) expense

Income tax (benefit) expense

Average shares outstanding, basic

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Diluted loss per share

(1) Adjusted for conversion of the former First Seacoast Bancorp, MHC.

At or For the Year Ended December 31,

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Additional qualitative considerations are made for any identified risk which did not exist within our portfolio historically and therefore may not be adequately addressed through evaluation of such risk factor based on historical portfolio trends as previously discussed.

Our ACL as a percent of total loans was 0.79% at December 31, 2024 and 2023, which primarily reflects the impact of calculated loss rates based upon remaining life measurements and our consideration of the current economic conditions that affect the qualitative adjustments used in the determination of the ACL as they have evolved over the year from the impact of inflationary pressures and geopolitical concerns, among other considerations.

Our ACL as a percent of total loans was 0.82% at December 31, 2025 and 0.79% at December 31, 2024, which primarily reflects the impact of calculated loss rates based upon remaining life measurements and our consideration of the current economic conditions that affect the qualitative adjustments used in the determination of the ACL as they have evolved over the year from the impact of inflationary pressures and geopolitical concerns, among other considerations.

While we consider a number of variables in our evaluation of the adequacy of the ACL, one of the more significant variables is the use of a reasonable and supportable forecast period in the calculation of a historical loss rate.

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Economic indicators during this period were mixed and appear similar to the current economy.

Additionally, because historical loss experience may not fully

reflect our expectations about the future, management has adjusted the historical loss rate through a qualitative adjustment to reflect current economic conditions not already reflected in the historical loss information.

If a pre-recessionary period such as the period between March 2007 and September 2009 was chosen as the reasonable and supportable forecast period with a similar qualitative adjustment consideration, the ACL would increase by $99,000 to $3.6 million.

Additionally, because

historical loss experience may not fully reflect our expectations about the future, management has adjusted the historical loss rate through a qualitative adjustment to reflect current economic conditions not already reflected in the historical loss information.

Alternatively, if the qualitative adjustment to reflect current economic conditions not already reflected in the historical loss information were removed from the chosen forecast period used in the calculation of the ACL, the ACL would decrease by $1.4 million to $2.0 million.

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Total assets were $599.3 million as of December 31, 2025, an increase of $18.5 million, or 3.2%, when compared to total assets of $580.8 million at December 31, 2024.

The increase was due primarily to increases in net loans and other assets offset by decreases in securities available-for-sale and in land, building and equipment, net.

The increase in other assets and decrease in land, building and equipment, net, was due primarily to accounting for the sale-leaseback transaction involving the Bank's main office and branches which was completed on June 11, 2024.

The increase was due primarily to increases in securities available-for-sale and cash and due from banks offset by a decrease in net loans.

Cash and Due From Banks.

Cash and due from banks increased $6.3 million, or 88.9%, to $13.4 million at December 31, 2025 from $7.1 million at December 31, 2024.

The increase was due primarily to a $49.4 million increase in total deposits and $7.4 million of proceeds from the sale of land, building and equipment, offset by an $8.8 million increase in net loans, a $40.7 million decrease in borrowings and $3.7 million of common stock repurchases during the year ended December 31, 2024.

The increase was due primarily to a $16.6 million increase in total deposits and a $19.4 million decrease in net loans offset by $29.6 million of net purchases of securities available-for-sale during the year ended December 31, 2025.

Available-for-Sale Securities.

Available-for-sale securities decreased by $1.6 million, or 1.3%, to $120.2 million at December 31, 2024 from $121.9 million at December 31, 2023.

This decrease was due to $36.2 million of proceeds from sales, maturities and principal payments received on securities available-for-sale and $547,000 of net amortization of bond premiums, offset by investment purchases totaling $36.7 million and a $1.5 million increase in net unrealized losses within the portfolio.

On December 11, 2024, we executed a balance sheet repositioning strategy related to our available-for-sale investment securities portfolio.

We sold $23.5 million in book value of lower-yielding investment securities for an after-tax realized gain of $5,000 and purchased $16.6 million of higher-yielding investment securities which were classified as available-for-sale upon purchase.

Available-for-sale securities increased by $32.2 million, or 26.8%, to $152.4 million at December 31, 2025 from $120.2 million at December 31, 2024.

This increase was due to investment purchases totaling $50.7 million and a $3.0 million decrease in net unrealized losses within the portfolio offset by $21.1 million of proceeds from maturities and principal payments received on securities available-for-sale and $387,000 of net amortization of bond premiums.

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 December 31, 2025.

The following table sets forth the amortized cost and average yield of our debt securities, by type and contractual maturity:

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Corporate subordinated debt

Net loans increased $8.8 million, or 2.1%, to $435.5 million at December 31, 2024 from $426.6 million at December 31, 2023.

During the year ended December 31, 2024, we originated $58.2 million of loans and purchased $2.7 million of participation interests in commercial and industrial loans and $1.8 million of consumer loans secured by manufactured housing properties.

Net loans decreased $19.4 million, or 4.5%, to $416.0 million at December 31, 2025 from $435.5 million at December 31, 2024.

During the year ended December 31, 2025, we collected $25.3 million of loan principal, net of new loan originations, and purchased $3.6 million of participation interests in commercial and industrial loans and $1.9 million of consumer loans secured by manufactured housing properties.

As of December 31, 2025 and 2024, the portfolios of purchased loans had outstanding principal balances of $37.0 million and $34.3 million, respectively, and were performing in accordance with their original repayment terms.

Net deferred loan costs increased $124,000, or 4.5%, to $2.9 million at December 31, 2025 from $2.8 million at December 31, 2024 due primarily to the increase in deferred costs on consumer loans offset by a decrease in deferred costs on one- to four-family residential mortgage loans.

Our ACL on loans increased $96,000 to $3.5 million at December 31, 2024 from $3.4 million at December 31, 2023, and consisted of a $120,000 provision for loan losses offset by $24,000 of net loan charge-offs.

One- to four-family residential mortgage loans increased $6.3 million, or 2.3%, to $275.2 million at December 31, 2024 from $268.9 million at December 31, 2023.

Commercial real estate mortgage loans decreased $546,000, or 0.6%, to $86.0 million at December 31, 2024 from $86.6 million at December 31, 2023.

Our ACL on loans decreased $59,000 to $3.4 million at December 31, 2025 from $3.5 million at December 31, 2024 and consisted of a $60,000 release of credit losses on loans offset by $1,000 of consumer loan recoveries.

One- to four-family residential mortgage loans decreased $10.0 million, or 3.6%, to $265.2 million at December 31, 2025 from $275.2 million at December 31, 2024.

Commercial real estate mortgage loans decreased $5.4 million, or 6.3%, to $80.6 million at December 31, 2025 from $86.0 million at December 31, 2024.

Acquisition, development and land loans decreased $2.1 million, or 13.9%, to $12.9 million at December 31, 2025 from $14.9 million at December 31, 2024.

Commercial and industrial loans decreased $1.2 million, or 4.9%, to $22.5 million at December 31, 2025 from $23.7 million at December 31, 2024.

Home equity loans and lines of credit increased $6.8 million, or 48.4%, to $20.9 million at December 31, 2024 from $14.1 million at December 31, 2023.

Multi-family real estate loans decreased $1.8 million, or 24.1%, to $5.8 million at December 31, 2024 from $7.6 million at December 31, 2023.

Consumer loans increased by $2.6 million, or 26.3%, to $12.4 million at December 31, 2024 from $9.8 million at December 31, 2023.

Home equity loans and lines of credit decreased $256,000, or 1.2%, to $20.7 million at December 31, 2025 from $20.9 million at December 31, 2024.

Multi-family real estate loans decreased $913,000, or 15.9%, to $4.8 million at December 31, 2025 from $5.8 million at December 31, 2024.

Consumer loans increased $335,000, or 2.7%, to $12.7 million at December 31, 2025 from $12.4 million at December 31, 2024.

Our strategy to grow the balance sheet continues to be through originations of one- to four-family residential mortgage loans, while also diversifying into higher yielding commercial and multi-family real estate loans and commercial and industrial loans to improve net margins and manage interest rate risk.

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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.

Deposits increased $49.4 million, or 12.2%, to $454.2 million at December 31, 2024 from $404.8 million at December 31, 2023 due to an increase in both time and core deposits.

Core deposits (defined as all deposits other than time deposits) increased $5.0 million, or 1.6%, to $318.5 million at December 31, 2024 from $313.5 million at December 31, 2023.

The increase in core deposits was due to a $20.7 million, or 31.9%, increase in savings deposits, offset by a decrease in NOW and demand deposits of $1.5 million, or 0.9%, and a decrease in money market deposits of $14.3 million, or 16.7%.

Deposits increased $16.6 million, or 3.7%, to $470.8 million at December 31, 2025 from $454.2 million at December 31, 2024 due primarily to an increase in time deposits.

Core deposits (defined as all deposits other than time deposits) increased $361,000, or 0.1%, to $318.8 million at December 31, 2025 from $318.5 million at December 31, 2024.

The increase in core deposits was due to a $7.5 million, or 4.6%, increase in NOW and demand deposits offset by a decrease in savings deposits of $1.9 million, or 2.2%, and a decrease in money market deposits of $5.3 million, or 7.4%.

Time deposits increased $16.2 million, or 11.9%, to $151.9 million at December 31, 2025 from $135.7 million at December 31, 2024.

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The purchase of brokered deposits offered a lower cost alternative to advances of similar duration from the Federal Home Loan Bank.

Total borrowings decreased $40.7 million, or 43.8%, to $52.3 million at December 31, 2024 from $93.0 million at December 31, 2023 due to a decrease in FHLB and FRB advances.

Advances from FHLB decreased $20.7 million, or 28.4%, to $52.3 million at December 31, 2024 from $73.0 million at December 31, 2023.

Advances from FRB decreased to $-0- at December 31, 2024 from $20.0 million at December 31, 2023 due to the repayment of advances from the Bank Term Funding Program.

Total borrowings were $52.3 million at December 31, 2025 and 2024.

Total Stockholders’ Equity.

Total stockholders’ equity decreased $4.6 million, or 6.9%, to $62.1 million at December 31, 2024 from $66.6 million at December 31, 2023.

This decrease was due primarily to $3.7 million of common stock repurchases, an other comprehensive loss of $1.1 million related primarily to net changes in unrealized holding losses in the available-for-sale securities portfolio as a result of increases in market interest rates during the year ended December 31, 2024 and a net loss of $513,000 for the year ended December 31, 2024, offset by the recognition of $786,000 of stock-based compensation.

Total stockholders’ equity increased $1.5 million, or 2.4%, to $63.5 million at December 31, 2025 from $62.1 million at December 31, 2024.

This increase was due primarily to $2.2 million of other comprehensive income related primarily to net changes in unrealized holding losses in the available-for-sale securities portfolio as a result of decreases in market interest rates during the year ended December 31, 2025 and the recognition of $1.1 million of stock-based compensation offset by a net loss of $845,000 for the year ended December 31, 2025 and $981,000 of common stock repurchases.

Non-performing Assets.

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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- at December 31, 2024, compared to $141,000, or 0.03% of total loans, at December 31, 2023.

At December 31, 2023, non-performing loans consisted of a residential mortgage loan and an associated home equity loan which had outstanding balances totaling $141,000 and an estimated collateral market value of $216,000.

The property was sold on July 19, 2024 and all outstanding balances were repaid.

Non-performing loans were $478,000, or 0.11% of total loans, at December 31, 2025, compared to $-0- at December 31, 2024.

As noted above in our lending activities discussion, at December 31, 2025, non-performing loans consist of two residential mortgage loans and a consumer loan secured by a manufactured housing property.

One non-performing residential mortgage loan with an outstanding balance of $297,000 was destroyed by a fire.

Our outstanding residential mortgage loan balance is expected to be paid with insurance proceeds.

Another non-performing residential mortgage loan with an outstanding balance of $64,000 and an estimated market value of $100,000 became current after year end and is expected to return to accrual status once the loan has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

The non-performing consumer loan secured by a manufactured housing property with an outstanding balance of $117,000 and an estimated market value of $140,000 is with a deceased borrower.

The property is expected to be sold and the outstanding balance paid.

At December 31, 2025 and 2024, we had no foreclosed assets.

Comparison of Operating Results for the Years Ended December 31, 2025 and 2024

Net loss was $513,000 for the year ended December 31, 2024, compared to a net loss of $10.7 million for the year ended December 31, 2023, a decrease of $10.1 million.

The decrease was due primarily to an increase in non-interest income of $5.9 million, a decrease in income tax expense of $3.4 million, a $388,000 increase in net interest and dividend income, a $260,000 decrease in (release) provision for credit losses and a decrease in non-interest expenses of $167,000 during the year ended December 31, 2024 compared to the year ended December 31, 2023.

Net loss was $845,000 for the year ended December 31, 2025, compared to a net loss of $513,000 for the year ended December 31, 2024, an increase of $332,000.

The increase was due primarily to a decrease in non-interest income of $2.2 million and a $1.1 million increase in non-interest expenses, offset by a $1.8 million increase in net interest and dividend income and a $1.2 million decrease in income tax expense during the year ended December 31, 2025 compared to the year ended December 31, 2024.

Interest and Dividend Income.

Interest and dividend income increased $1.6 million, or 6.1%, to $27.0 million for the year ended December 31, 2025 from $25.4 million for the year ended December 31, 2024.

This increase was due to a $2.7 million, or 16.2%, increase in interest and fees on loans and a $2.1 million, or 57.0%, increase in interest and dividend income on investments.

This increase was due to a $583,000, or 3.0%, increase in interest and fees on loans and a $972,000, or 16.8%, increase in interest and dividend income on investments.

Average interest-earning assets increased $16.5 million, or 2.9%, to $586.3 million for the year ended December 31, 2025 from $569.8 million for the year ended December 31, 2024.

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Interest Expense.

Total interest expense increased $4.5 million, or 49.0%, to $13.5 million for the year ended December 31, 2024 from $9.1 million for the year ended December 31, 2023.

Total interest expense decreased $234,000, or 1.7%, to $13.3 million for the year ended December 31, 2025 from $13.5 million for the year ended December 31, 2024.

Interest expense on deposits increased $1.1 million, or 10.9%, for the year ended December 31, 2025 compared to the year ended December 31, 2024.

The average balance of interest-bearing deposits increased $42.4 million, or 13.3%, to $361.6 million for the year ended December 31, 2024 from $319.2 million for the year ended December 31, 2023 primarily as a result of an increase in the average balance of time, savings and money market deposits offset by a decrease in the average balances of NOW and demand deposits.

The weighted average rate of interest-bearing deposits increased to 2.67% for the year ended December 31, 2024 from 1.67% for the year ended December 31, 2023 due primarily to an increase in market interest rates and to respond to deposit pricing by competitors.

Interest expense on borrowings consists of interest on advances from the Federal Home Loan Bank and the Federal Reserve Bank.

Interest expense on borrowings increased $164,000, or 4.4%, to $3.9 million for the year ended December 31, 2024 from $3.7 million for the year ended December 31, 2023 primarily due to an increase in the average balance of borrowings.

The average balance of borrowings increased $3.0 million, or 3.9%, to $81.9 million for the year ended December 31, 2024 from $78.8 million for the year ended December 31, 2023.

The weighted average rate of borrowings increased to 4.73% for the year ended December 31, 2024 from 4.70% for the year ended December 31, 2023.

The average balance of interest-bearing deposits increased $42.6 million, or 11.8%, to $404.2 million for the year ended December 31, 2025 from $361.6 million for the year ended December 31, 2024 primarily as a result of an increase in the average balance of time and savings deposits offset by a decrease in the average balances of money market deposits.

The weighted average rate of interest-bearing deposits decreased to 2.65% for the year ended December 31, 2025 from 2.67% for the year ended December 31, 2024.

Interest expense on borrowings decreased $1.3 million, or 33.3%, to $2.6 million for the year ended December 31, 2025 from $3.9 million for the year ended December 31, 2024 primarily due to a decrease in the average balance of borrowings.

The average balance of borrowings decreased $26.3 million, or 32.1%, to $55.6 million for the year ended December 31, 2025 from $81.9 million for the year ended December 31, 2024.

The weighted average rate of borrowings decreased to 4.64% for the year ended December 31, 2025 from 4.73% for the year ended December 31, 2024 due to a decrease in market interest rates.

Net Interest and Dividend Income.

Net interest and dividend income increased $388,000, or 3.4%, to $11.9 million for the year ended December 31, 2024 from $11.5 million for the year ended December 31, 2023.

This increase was due to a $36.9 million, or 6.9%, increase in the average balance of interest-earning assets, consisting primarily of increases in the average balances of loans and taxable debt securities during the year ended December 31, 2024 offset by an increase of $45.3 million, or 11.3%, in the average balance of interest-bearing liabilities, consisting primarily of an increase in the average balance of time and savings deposits.

Net interest rate spread decreased to 1.42% for the year ended December 31, 2024 from 1.59% for the year ended December 31, 2023 due primarily to an increase in the average rate of interest-bearing deposits offset by an increase in the average yield on interest-earning assets.

(Release) Provision for Credit Losses.

Based upon management’s analysis of the ACL, a $(72,000) release of credit losses was recorded for the year ended December 31, 2024 compared to a $188,000 provision for credit losses for the year ended December 31, 2023.

The release of credit losses for the year ended December 31, 2024 consisted of a $120,000 provision for credit losses on loans and a $(192,000) release of credit losses on off-balance sheet credit exposures.

Non-Interest Income (Loss).

Non-interest income increased $5.9 million, or 294.5%, to $3.9 million for the year ended December 31, 2024 compared to $(2.0) million for the year ended December 31, 2023.

The increase in non-interest income during the year ended December 31, 2024 was due primarily to a one-time $2.5 million gain on the sale of land and buildings and a $4.2 million, or 100.2%, decrease in losses realized on the sale of securities, as compared to an $849,000 gain on termination of interest rate swaps recognized during the year ended December 31, 2023.

Net interest and dividend income increased $1.8 million, or 15.0%, to $13.7 million for the year ended December 31, 2025 from $11.9 million for the year ended December 31, 2024.

This increase was due to a $16.5 million, or 2.9%, increase in the average balance of interest-earning assets offset by an increase of $16.5 million, or 3.7%, in the average balance of interest-bearing liabilities.

The increase in the average balance of interest-earning assets consisted primarily of an increase in the average balances of taxable debt securities offset by a decrease in taxable debt securities during the year ended December 31, 2025.

The increase in the average balance of interest-bearing liabilities consisted primarily of an increase in the average balance of time and savings deposits offset by a decrease in the average balance of money market deposits and borrowings.

Net interest rate spread increased to 1.72% for the year ended December 31, 2025 from 1.42% for the year ended December 31, 2024 due primarily to an increase in the average yield on interest-earning assets and a decrease in the average rate of interest-bearing liabilities.

Release of Credit Losses.

Based upon management’s analysis of the ACL, a $(1,000) release of credit losses was recorded for the year ended December 31, 2025 compared to a $(72,000) release of credit losses for the year ended

December 31, 2024.

The release of credit losses for the year ended December 31, 2025 consisted of a $(60,000) release of credit losses on loans and a $59,000 provision for credit losses on off-balance sheet credit exposures.

Non-Interest Income.

Non-interest income decreased $2.2 million, or 55.1%, to $1.8 million for the year ended December 31, 2025 compared to $3.9 million for the year ended December 31, 2024.

The decrease in non-interest income during the year ended December 31, 2025 was due primarily to a one-time $2.5 million gain on the sale of land and buildings recognized during the year ended December 31, 2024 offset by a $283,000 increase in customer service fees and an $89,000 increase in gain on sale of loans during the year ended December 31, 2025.

During the year ended December 31, 2025 a commercial and industrial loan originated under the Small Business Administration 7(a) Guarantee program was sold.

The 75% guarantee portion of the loan was sold, on a servicing-retained basis, at a gain of $102,000.

Non-Interest Expense.

Non-interest expense decreased $167,000, or 1.0%, to $15.9 million for the year ended December 31, 2024 from $16.0 million for the year ended December 31, 2023.

The decrease in non-interest expense was due primarily to a $427,000, or 4.4%, decrease in salaries and employee benefits, a $111,000, or 20.9%, decrease in marketing, a

$104,000, or 22.8%, decrease in equipment expense and a $94,000, or 5.9%, decrease in data processing offset by a $214,000, or 28.2%, increase in occupancy expense, a $160,000, or 15.8%, increase in professional fees and assessments and a $142,000, or 55.3%, increase in deposit insurance fees during the year ended December 31, 2024.

The decrease in salaries and benefits during the year ended December 31, 2024 was due to the adjustment of staffing levels in late 2023 reflecting the expected reduction in 2024 residential mortgage and commercial lending activity offset by normal salary increases.

Non-interest expense increased $1.1 million, or 6.7%, to $16.9 million for the year ended December 31, 2025 from $15.9 million for the year ended December 31, 2024.

The increase in non-interest expense was due primarily to a $368,000, or 4.3%, increase in salaries and employee benefits, a $296,000, or 45.6%, increase in equity compensation expense, a $414,000, or 42.6%, increase in occupancy expense and a $135,000, or 9.0%, increase in data processing offset by a $67,000, or 19.0%, decrease in equipment expense and a $96,000, or 8.2%, decrease in professional fees and assessments during the year ended December 31, 2025.

The increase in salaries and benefits during the year ended December 31, 2025 was due to normal salary increases.

The increase in equity compensation expense was due to the incentive and non-statutory stock options granted in December 2024.

The increase in occupancy expense was due primarily to the increase in lease expense associated with the sale-leaseback transaction completed on June 11, 2024.

Income Taxes.

Income tax expense decreased $3.4 million to $527,000 for the year ended December 31, 2024 compared to $3.9 million for the year ended December 31, 2023.

Income tax benefit increased $1.2 million, or 221.1%, to a benefit of $638,000 for the year ended December 31, 2025 compared to a $527,000 income tax expense for the year ended December 31, 2024.

The effective tax rate was (43.0)% and 3,764.3% for the years ended December 31, 2025 and 2024, respectively.

Income (loss) before income tax expense was $14,000 for the year ended December 31, 2024 as compared to $(6.7) million for the year ended December 31, 2023.

The increase in the effective tax rate for 2024 as compared to 2023 was due primarily to the increase in the valuation allowance for all deferred tax assets during the year ended December 31, 2024.

(Loss) income before income tax (benefit) expense was $(1.5) million for the year ended December 31, 2025 as compared to $14,000 for the year ended December 31, 2024.

The income tax benefit and effective tax rate for the year ended December 31, 2025 was greater than statutory federal and state rates due primarily to an $812,000 reduction of the deferred tax asset valuation allowance as of December 31, 2025 resulting from the change in accumulated other comprehensive income during the year ended December 31, 2025.

The income tax expense and effective tax rate for the year ended December 31, 2024 was greater than statutory federal and state rates due primarily to the increase in the valuation allowance for all deferred tax assets during the year ended December 31, 2024.

Average Balance Sheets

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Net interest margin (3)

Average interest-earning assets

as a percent of interest-bearing

Average interest-earning assets as a percent of interest-bearing liabilities

(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.

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The percent changes to NPV in the +100, +200, +300 and +400 bp changes in interest rates was -9.8%, -21.2%, -32.0% and -43.6%, respectively, at December 31, 2024 versus policy limits of -10.0%, -20.0%, -30.0% and -40.0%, respectively.

These percent changes were due primarily to the migration of deposits during 2024 and 2023 from less interest-sensitive products such as NOW and demand deposits to products with greater interest rate sensitivity, i.e., money market and time deposits.

These percent changes were due primarily to the migration of deposits during 2025 and 2024 from less interest-sensitive products such as NOW and interest-bearing demand deposits to products with greater interest rate sensitivity, i.e., money market deposits and time deposits.

We monitor our exposure to movements in interest rates regularly and discuss the implementation of strategies we believe will mitigate the negative impact of such movements.

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As of December 31, 2025 and 2024, 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 $107.7 million, or 22.9% of total deposits, and $112.2 million, or 24.7% of total deposits, respectively.

For customers requiring full FDIC insurance on certificates of deposit in excess of $250,000, we began offering in late 2023 the CDARS® program, which allows the Bank to place the certificates of deposit with other participating banks to maximize the customers’ FDIC insurance.

For customers requiring full FDIC insurance on certificates of deposit in excess of $250,000, we offer the CDARS® program, which allows the Bank to place the certificates of deposit with other participating banks to maximize the customers’ FDIC insurance.

We receive a like amount of deposits from other participating financial institutions.

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We also rely on borrowings from the FHLB as supplemental sources of funds.

At December 31, 2024 and 2023, we had $52.3 million and $73.0 million outstanding in advances from the FHLB, respectively, and the ability to borrow an additional $94.0 million and $71.8 million, respectively.

At December 31, 2024 and 2023, we had an overnight line of credit with the FHLB for up to $3.0 million.

Additionally, at December 31, 2024 and 2023, the Bank had a total of $2.0 million and $5.0 million, respectively, of unsecured Fed Funds borrowing lines of credit with correspondent banks.

At December 31, 2025 and 2024, we had $52.3 million outstanding in advances from the FHLB and the ability to borrow an additional $96.6 million and $94.0 million, respectively.

At December 31, 2025 and 2024, the Bank had an overnight line of credit with the FHLB for up to $3.0 million.

The Bank has a secured credit facility with the FRB – BIC Program.

The Bank’s unused available borrowing capacity at the FRB was $34.1 million and $-0- at December 31, 2025 and December 31, 2024, respectively.

Additionally, at December 31, 2025 and 2024, the Bank had a $2.0 million unsecured Fed Funds borrowing line of credit with a correspondent bank.

At December 31, 2025 and 2024, there were no outstanding balances under any of these additional credit facilities.

The Bank established two secured credit facilities with the FRB – Bank Term Funding Program (“BTFP”) and Borrower-In-Custody of Collateral Program (“BIC”).

As of December 31, 2024 and 2023, $-0- and $20.0 million of BTFP advances were outstanding, respectively, and were collateralized by eligible collateral consisting primarily of government-sponsored enterprise obligations, mortgage-backed securities and collateralized mortgage obligations issued by various U.S.

Government agencies, owned as of March 12, 2023, December 31, 2023, and December 13, 2024.

No further advances could be requested under the BTFP after March 11, 2024.

The advance matured on December 13, 2024 at a fixed annual rate of 4.89%.

The interest rate for term advances under the BTFP was based upon 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 was made.

Advances under the BIC, if any, are collateralized by eligible collateral.

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The Bank subsequently pledged $65.0 million of its commercial real estate loans to the BIC resulting in $38.5 million of borrowing capacity under this credit facility as of January 16, 2025.

At December 31, 2023,

the Bank’s borrowing capacity was $50.6 million under the BIC and was based upon eligible collateral -principally general obligation municipal bonds.

The entire balance of this credit facility was available at December 31, 2023.

On September 9, 2025, the FHLB agreed to increase the subordination of their interest in our commercial real estate loans up to a maximum of $71.7 million allowing these loans to be pledged to the BIC.

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition.

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investing activities and financing activities.

Net cash used by operating activities was $2.9 million and $1.9 million for the years ended December 31, 2024 and 2023, respectively.

Net cash provided (used) by operating activities was $449,000 and $(2.9) million for the years ended December 31, 2025 and 2024, respectively.

Net cash used by investing activities, which consists primarily of disbursements for loan originations and loan purchases and the purchase of securities available-for-sale, offset by principal collections on loans, proceeds from sales, maturities and principal payments received on securities available-for-sale, was $9.9 million and $2.5 million for the years ended December 31, 2025 and 2024, respectively.

Net cash provided by financing activities, consisting primarily of proceeds from the sale of common stock, activity in deposit accounts, FHLB and FRB advances, was $6.5 million and $39.2 million for the years ended December 31, 2024 and 2023, respectively.

Net cash provided by financing activities, consisting primarily of proceeds from the activity in deposit accounts and FHLB advances was $15.7 million and $6.5 million for the years ended December 31, 2025 and 2024, respectively.

We are committed to maintaining a strong liquidity position.

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Federal Home Loan Bank stock

Less allowance for credit losses on loans

Allowance for credit losses on loans

Land, building and equipment, net

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Advances from Federal Home Loan Bank

Advances from Federal Reserve Bank

Mortgagors’ tax escrow

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Net interest and dividend income

(Release) provision for credit losses

Net interest and dividend income after (release) provision for credit losses

Release of credit losses

Net interest and dividend income after release of credit losses

Non-interest income:

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Gain on sale of loans

Securities gains (losses), net

Gain (loss) on sale of land, building and equipment

Gain on termination of interest rate swaps

Securities gains, net

Gain on sale of land, building and equipment

Income from bank-owned life insurance

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Investment services fees

Total non-interest income (loss)

Total non-interest income

Non-interest expense:

Salaries and employee benefits

Equity compensation expense

Director compensation

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Total non-interest expense

Income (loss) before income tax expense

Income tax expense

(Loss) income before income tax (benefit) expense

Income tax (benefit) expense

Loss per share:

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(Dollars in thousands)

Other comprehensive (loss) income, net of income taxes (1) :

Other comprehensive income (loss), net of income taxes (1) :

Securities available-for-sale:

Unrealized holding (losses) gains on securities available-for-sale

Unrealized holding gains (losses) on securities available-for-sale

arising during the year, net of income taxes of $ 708 and $( 540 )

in 2025 and 2024, respectively

Reclassification adjustment for securities (gains) losses, net and net amortization

Reclassification adjustment for securities gains, net and net amortization

of bond premiums included in net loss, net of income taxes of

$ 104 and $ 146 in 2025 and 2024, respectively

Total unrealized (loss) gain on securities available-for-sale

Total unrealized gain (loss) on securities available-for-sale

Change in interest rate swaps, net of income taxes of $( 2 ) and

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Total change in interest rate swaps

Other comprehensive (loss) income

Comprehensive loss

Other comprehensive income (loss)

Comprehensive income (loss)

( 1) Includes a deferred tax valuation allowance equal to the net tax benefit.

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Balance December 31, 2023

Other comprehensive income

Other comprehensive loss

Treasury stock activity

Cumulative adjustment for change in accounting principle

(ASU 2016-13)

Reorganization:

Conversion of First Seacoast Bancorp, Inc.

(net of costs of $ 2.4 million)

Purchase of 224,400 shares of common stock by the ESOP

Excise tax on stock repurchases

Issuance of stock compensation

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Balance December 31, 2024

Other comprehensive loss

Other comprehensive income

Treasury stock activity

Excise tax on stock repurchases

Issuance of stock compensation

Amortization of unearned stock compensation

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Balance December 31, 2025

(1) Shares adjusted for conversion of the former First Seacoast Bancorp, MHC.

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

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Cash flows from operating activities:

Adjustments to reconcile net loss to net cash used by operating activities:

Cumulative change in accounting principle (ASU 2016-13)

Adjustments to reconcile net loss to net cash provided (used) by operating activities:

Stock based compensation

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Net amortization of bond premium

Securities (gains) losses, net

(Release) provision for credit losses

Securities gains, net

Release of credit losses

Gain on sale of loans

(Gain) loss on sale of land, building and equipment

Gain on termination of interest rate swaps

Gain on sale of land, building and equipment

Proceeds from loans sold

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Increase in deferred costs on loans

Deferred tax expense

Decrease (increase) in accrued interest receivable

(Increase) decrease in other assets

Deferred tax (benefit) expense

(Increase) decrease in accrued interest receivable

Decrease (increase) in other assets

Increase in deferred compensation liability

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Decrease in other liabilities

Net cash used by operating activities

Net cash provided (used) by operating activities

Cash flows from investing activities:

Proceeds from sales, maturities and principal payments received on securities available-for-sale

Proceeds from sales, calls, maturities and principal payments received on securities available-for-sale

Purchase of securities available-for-sale

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Net redemption of Federal Home Loan Bank stock

Proceeds from sales of interest bearing time deposits with other banks

Proceeds from sale of land, building and equipment

Termination of fair value hedges

Proceeds from termination of interest rate swaps

Net cash used by investing activities

Cash flows from financing activities:

Net increase (decrease) in NOW, demand deposits, money market and savings accounts

Net increase in NOW, demand deposits, money market and savings accounts

Net increase in time deposits

Increase (decrease) in mortgagors’ escrow accounts

Increase in mortgagors’ escrow accounts

Proceeds of finance lease

Principal payments on finance lease

Proceeds from sale of common stock, net

Common stock purchased by ESOP

Return of capital from conversion of First Seacoast Bancorp, Inc.

Treasury stock purchases

Proceeds from advances from Federal Reserve Bank

Proceeds from long-term FHLB advances

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Deferred taxes

Other comprehensive (loss) income

Other comprehensive income (loss)

Effect of change in fair value of interest rate swaps:

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Deferred taxes

Other comprehensive loss

Other comprehensive income (loss)

Cumulative fair value hedging adjustment - loans

Cumulative fair value hedging adjustment - securities available-for-sale

Effect of the adoption of ASU 2016-13:

Allowance for credit losses on loans

Other liabilities

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

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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 offers a full range of banking and investment management services to its customers.

The Bank focuses on four core services that center around customer needs.

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The Bank offers a full range of commercial and consumer banking services through its network of five full-service branch locations.

Investment management services are offered through FSB Wealth Management.

FSB Wealth Management is a division of First Seacoast Bank.

Investment management services are offered through FSB Wealth Management - a division of First Seacoast Bank.

The division currently consists of two financial advisors who are located in Dover, New Hampshire.

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Basis of Presentation

The financial statements have been prepared in conformity with U.S.

The consolidated financial statements have been prepared in conformity with U.S.

generally accepted accounting principles (“GAAP”).

Use of Estimates

In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period.

In preparing the consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period.

Actual results could differ from those estimates.

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Reclassifications

Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation.

Certain amounts in the prior year’s consolidated financial statements may have been reclassified to conform with the current year’s presentation.

Securities Available-for-Sale

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The remainder of the residential mortgage-backed securities are non-agency collateralized mortgage obligations which currently carry investment-grade bond ratings.

At December 31, 2024, municipal bonds are highly-rated and are issued by state and local governments with minimal credit risk.

At December 31, 2025, municipal bonds are highly-rated and are issued by state and

local governments with minimal credit risk.

Available-for-sale securities consist of debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity.

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A loss rate is applied to pool balances over time.

ASC 326 may create more volatility in the ACL, specifically the ACL on loans and ACL on off-balance sheet credit exposures.

ASC 326 may create volatility in the ACL, specifically the ACL on loans and ACL on off-balance sheet credit exposures.

Under ASC 326, the ACL may increase or decrease period to period based on many factors, including, but not limited to:

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Generally, the forecast period the Company 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, the Company 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.

In periods of greater volatility and uncertainty, such as the current interest rate environment, the Company 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, the Company may consider a range of possible forecasts and evaluate the probability of each scenario.

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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.

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.

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The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter.

insurance policy with any individual carrier is limited to 15 % of Tier one capital, and the total cash surrender value of life insurance policies is limited to 25 % of Tier one capital at the time of purchase.

A life insurance policy with any individual carrier is limited to 15 % of Tier one capital, and the total cash surrender value of life insurance policies is limited to 25 % of Tier one capital at the time of purchase.

Treasury Stock

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The Company is amortizing the customer list intangible on a straight-line basis over a ten-year period.

During the years ended December 31, 2024 and 2023, $ 32,000 and $ 30,000 of amortization expense was recorded in other expense, respectively.

During the years ended December 31, 2025 and 2024, $ 32,000 of amortization expense was recorded in other expense.

Revenue Recognition

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The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit and investments securities, as well as revenue related to our mortgage servicing activities and bank owned life insurance, as these activities are subject to other GAAP discussed

elsewhere within our disclosures.

The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit and investments securities, as well as revenue related to our mortgage servicing activities and bank-owned life insurance, as these activities are subject to other GAAP discussed elsewhere within our disclosures.

Descriptions of our revenue-generating activities that are within the scope of ASC 606 and which are presented in our income statements as components of non-interest income are as follows:

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The ESOP is a tax-qualified retirement plan for the benefit of company employees.

The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of stockholders' equity.

The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a

reduction of stockholders' equity.

Compensation expense is based on the market price of shares as they are committed to be released to participant accounts.

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The agreements provide supplemental retirement benefits payable in installments over a period of years upon retirement or death and for the crediting to a liability account a fixed amount of compensation, which earns interest at a rate determined in the agreement.

The Company recognizes the cost of providing these benefits over

the time period the individuals render service through the retirement date.

The Company recognizes the cost of providing these benefits over the time period the individuals render service through the retirement date.

At each measurement date, the aggregate amount accrued equals the then present value of the benefits expected to be provided to the individual in exchange for the individual’s service to that date.

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however, the majority of the leases have been classified as non-cancellable operating leases and are primarily for real estate and equipment leases with remaining lease terms of up to 15 years.

The Company accounts for leases under ASC Topic 842 – Leases (Topic 842) – and recognizes 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 accounts for leases under ASC Topic 842 – Leases (Topic 842) – and recognizes its operating leases on its consolidated balance sheets 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.

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To the extent that the Company establishes or adjusts a valuation allowance in a period, an expense or benefit is recorded within the tax provision in the consolidated statements of loss.

Comprehensive Loss

Comprehensive Income (Loss)

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net loss.

Although certain changes in assets and liabilities, such as unrealized gains and losses on securities available-for-sale, are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net loss, are components of comprehensive loss.

The Company also records changes in the fair value of interest rate derivatives used in its cash flow hedging activities, net of deferred income tax, in comprehensive loss.

The Company also records changes in the fair value of interest rate derivatives used in its cash flow hedging activities, net of deferred income tax, in comprehensive income (loss).

Loss Per Share

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The accounting for changes in the fair value of such derivatives depends on the intended use of the derivative and resulting designation.

For derivatives designated as cash flow hedges, the gain or loss on the derivative is reported in other comprehensive (loss) income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings.

For derivatives designated as cash flow hedges, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings.

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.

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The Company has determined that all of its banking services meet the aggregation criteria of ASC 280, Segment Reporting , as its current operating model is structured whereby the Bank serves a similar base of customers who utilize a company-wide offering of similar products and services managed through similar processes that are collectively reviewed by the Company’s Chief Executive Officer , who has been identified as the chief operating decision maker (“CODM”).

The CODM regularly assesses performance of the aggregated single operating and reporting segment and decides how to allocate resources based upon net income or loss calculated on the same basis as net income or loss is reported in the Company’s consolidated statements of net loss and other comprehensive (loss) income.

The CODM is also regularly provided with the expense information at a level consistent with that disclosed in the Company’s consolidated statements of net loss and other comprehensive (loss) income.

The CODM is also regularly provided with the expense information at a level consistent with that disclosed in the Company’s consolidated statements of loss and other comprehensive income (loss).

Recent Accounting Pronouncements

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ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s consolidated financial statements.

In November 2025, the FASB issued ASU 2025-08, “Financial Instruments - Credit Losses (Topic 326):

Purchased Loans.” ASU 2025-08 amends the guidance in ASC 326 on the accounting for certain purchased loans.

Under the ASU, entities must account for acquired loans that meet certain criteria at acquisition (“purchased seasoned loans”) by recognizing the loan at its purchase price plus an allowance for expected credit losses (i.e., the gross-up approach).

The ASU’s amendments align the accounting for purchased seasoned loans with the treatment of financial assets purchased with more-than-insignificant credit deterioration since origination (“PCD assets”).

ASU 2025-08 is effective for annual reporting periods beginning after December 15, 2026 on a prospective basis.

Early adoption is also permitted.

We are currently evaluating the effect this standard will have on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures.” ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities.

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We are currently evaluating the effect this standard will have on our disclosures.

Recently Adopted Accounting Pronouncements

In March 2024, the FASB issued ASU 2024-02, “Codification Improvements,” which amends the Codification to remove references to various concepts statements and impacts a variety of topics in the Codification.

The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance.

The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are

extraneous and not required to understand or apply the guidance.

Generally, the amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities.

ASU 2024-02 is effective January 1, 2025 and is not expected to have a material impact on the Company's consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, " Income Taxes- Improvements to Income Tax Disclosures" , which will require enhancements and further transparency to various income tax disclosures, most notably the tax rate reconciliation and income taxes paid.

ASU 2023-09 becomes effective for annual periods beginning after December 15, 2024 on a prospective basis.

ASU 2024-02 was effective January 1, 2025 and did not have a material impact on the Company's consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, " Income Taxes- Improvements to Income Tax Disclosures" , which requires enhancements and further transparency to various income tax disclosures, most notably the tax rate reconciliation and income taxes paid.

ASU 2023-09 became effective for annual periods beginning after December 15, 2024 on a prospective basis.

Retrospective application for all periods presented is permitted.

Early adoption is also permitted.

We are currently evaluating the effect this standard will have on our disclosures.

Early adoption was also permitted.

ASU 2023-09 did not have a material impact on the Company's consolidated financial statements.

Securities Available-for-Sale

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(Dollars in thousands)

Proceeds from sales, maturities and principal payments

received on securities available-for-sale

Proceeds from principal payments received on securities available-for-sale

Proceeds from sales, calls and maturities received on securities available-for-sale

Gross realized gains

Gross realized losses

Net realized gains (losses)

Net realized gains

The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at December 31, 2025 and 2024.

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There was no accrued interest reversed against interest income for the years ended December 31, 2025

Accrued interest receivable on available-for-sale securities totaled $ 800,000 and $ 1.1 million at December 31, 2024 and 2023, respectively, and is excluded from the estimate of credit losses.

At December 31, 2024 and 2023, $- 0 - and $ 74.1 million of securities available-for-sale were pledged as collateral for the Company's Bank Term Funding Program ("BTFP") and Borrower-In-Custody ("BIC") secured credit facilities, respectively.

During December 2024, the Company repaid its BTFP loan and unpledged all the collateral previously pledged to the BTFP and BIC - principally U.S.

Government-sponsored obligations and general obligation municipal bonds – with the intention of pledging commercial real estate loans to the BIC (see Note 9 for more information).

Accrued interest receivable on available-for-sale securities totaled $ 837,000 and $ 800,000 at December 31, 2025 and 2024, respectively, and is excluded from the estimate of credit losses.

As of December 31, 2025 and 2024, 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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The Company elected to include deferred loan originations costs, net and to exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this footnote.

As of December 31, 2024 and 2023, accrued interest receivable for loans totaled $ 1.3 million and $ 1.2 million, respectively, and is included in the “accrued interest receivable” line item on the Company’s consolidated balance sheets.

January 1, 2023 ASC 326 Transition (Day 1) Impact

The ASC 326 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)

Allowance for credit losses on loans:

Commercial real estate (CRE)

Multifamily (MF)

Commercial and industrial (C+I)

Acquisition, development, and land (ADL)

1-4 family residential (RES)

Home equity loans and lines of credit (HELOC)

Consumer (CON)

Allowance for credit losses on loans

Allowance for credit losses on OBS credit exposures

STOCKHOLDERS' EQUITY

Retained earnings

As of December 31, 2025 and 2024, accrued interest receivable for loans totaled $ 1.3 million and is included in the “accrued interest receivable” line item on the Company’s consolidated balance sheets.

Changes in the ACL for the year ended December 31, 2025 and 2024, by portfolio segment, are summarized as follows:

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Balance, December 31, 2025

Balance, December 31, 2022, Prior to Adoption of ASC 326

Impact of adopting ASC 326

Balance, December 31, 2023

(Release) provision for credit losses on loans

Balance, December 31, 2024

The increase in the allowance for credit losses in 2024 was primarily a result of the increase in loans.

The decrease in the allowance for credit losses in 2023 was primarily a result of the impact of adopting ASC 326 offset by the increase in loans.

The following represents the composition of the Company's (release) provision for credit losses for the year ended December 31:

The change in the allowance for credit losses during the years ended December 31, 2025 and 2024 was primarily a result of the changes in loan balances and off-balance sheet credit exposures.

The fo llowing represents the composition of the Company's release of credit losses for the year ended December 31:

(Dollars in thousands)

Off-balance sheet credit exposures

Total (release) provision for credit losses

Total release of credit losses

The following is an aged analysis of past due loans by portfolio segment as of December 31, 2025:

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Total Past Due

The Company's collateral-dependent non-accrual RES and HELOC loans with one borrower had an amortized cost basis of $ 141,000 at December 31, 2023 and was secured by real estate with an appraised value of $ 216,000 .

The property was sold on July 19, 2024 and all outstanding balances were repaid.

Interest income recognized on non-accrual loans during the years ended December 31, 2025 and 2024 was $- 0 -.

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On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, multifamily, commercial and industrial, and acquisition, development and land 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.

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 and overall credit risk administration.

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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 19 for more

information).

These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 19 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.

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Furniture, fixtures and equipment

Less accumulated depreciation

On June 11, 2024, the Bank entered into and closed on an agreement with a single purchaser for the purchase and sale of four properties formerly owned and operated by the Bank, which included four branches (with an adjacent drive thru) and a parking lot, each adjacent to a sold branch, for an aggregate cash purchase price of $ 7.5 million (see Note 13 for more information).

Accumulated depreciation

Deposits consisted of the following at December 31, 2025 and 2024:

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Reciprocal deposits were $ 9.1 million and $ 6.0 million at December 31, 2025 and 2024, respectively.

Deposits from related parties totaled approximately $ 11.6 million and $ 10.7 million at of December 31, 2024 and 2023, respectively.

Deposits from related parties totaled approximately $ 10.9 million and $ 11.6 million at December 31, 2025 and 2024, respectively.

At December 31, 2025, the scheduled maturities of time deposits were as follows:

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(Dollars in thousands)

0.00 % – fixed

4.38 % to 4.75 % – fixed

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0.00 % – fixed

December 31, 2024

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(Dollars in thousands)

0.00 % to 5.53 % – fixed

0.00 % – fixed

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0.00 % – fixed

Included in the above borrowings from the FHLB at December 31, 2024 is a $ 25.0 million long-term advance, with an interest rate of 4.75 %, which is callable by the FHLB on January 29, 2025 and quarterly thereafter.

Also, included in the above borrowings from the FHLB at December 31, 2024 and 2023 is a $ 25.0 million long-term advance, with an interest rate of 4.38 %, which is callable by the FHLB on December 8, 2025 and quarterly thereafter.

As of December 31, 2024 and 2023, borrowings from the FHLB also include $ 2.3 million and $ 2.7 million, respectively, 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 %.

0.00 % – fixed

Included in the above borrowings from the FHLB at December 31, 2025 and 2024 is a $ 25.0 million long-term advance, with an interest rate of 4.75 %, which is callable by the FHLB on January 29, 2026 and quarterly thereafter.

Also, included in the above borrowings from the FHLB at December 31, 2025 and 2024 is a $ 25.0 million long-term advance, with an interest rate of 4.38 %, which is callable by the FHLB on March 6, 2026 and quarterly thereafter.

As of December 31, 2025 and 2024, borrowings from the FHLB also include $ 2.3 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 December 31, 2025 and 2024, the Bank had an overnight line of credit with the FHLB that may be drawn up to $ 3.0 million.

Federal Reserve Bank of Boston (“FRB”)

The Bank established two secured credit facilities with the FRB – Bank Term Funding Program (“BTFP”) and Borrower-In-Custody of Collateral Program (“BIC”).

As of December 31, 2024 and 2023, $- 0 - and $ 20.0 million of BTFP advances were outstanding, respectively, and were collateralized by eligible collateral consisting primarily of government-sponsored enterprise obligations, mortgage-backed securities and collateralized mortgage obligations issued by various U.S.

Government agencies, owned as of March 12, 2023, December 31, 2023 and December 13, 2024.

No further advances could be requested under the BTFP after March 11, 2024.

The advance matured on December 13, 2024 at a fixed annual rate of 4.89 %.

Advances under the BIC would be collateralized by eligible collateral.

The Bank has a secured credit facility with the FRB – BIC Program.

The Bank’s unused available borrowing capacity at the FRB was $ 34.1 million and $- 0 - at December 31, 2025 and December 31, 2024, respectively.

Advances under the BIC, if any, are collateralized by eligible collateral.

During December 2024, the Bank unpledged the collateral previously pledged to the BIC - principally general obligation municipal bonds – with the intention of pledging commercial real estate loans.

On January 7, 2025, the Bank completed the eligibility process whereby the FHLB agreed to subordinate their interest in commercial real estate loans up to a maximum of $ 65.0 million allowing these loans to be pledged to the BIC.

On January 7, 2025, the Bank completed the collateral eligibility process with the FRB whereby the FHLB agreed to subordinate their interest in our commercial real estate loans up to a maximum of $ 65 million allowing these loans to be pledged to the BIC.

The Bank subsequently pledged $ 65.0 million of its commercial real estate loans to the BIC resulting in $ 38.5 million of borrowing capacity under this credit facility as of January 16, 2025.

The entire $ 50.6 million borrowing capacity of the BIC was available at December 31, 2023.

Correspondent Banks

At December 31, 2024 and 2023, the Bank had a total of $ 2.0 million and $ 5.0 million, respectively, of unsecured Fed Funds borrowing lines of credit with correspondent banks.

The entire balance of these credit facilities was available at December 31, 2024 and 2023.

On September 9, 2025, the FHLB agreed to increase the subordination of their interest in our commercial real estate loans up to a maximum of $ 71.7 million allowing these loans to be pledged to the BIC.

Correspondent Bank

At December 31, 2025 and 2024, the Bank had a $ 2.0 million unsecured Fed Funds borrowing line of credit with a correspondent bank.

The entire balance of this credit facility was available at December 31, 2025 and 2024.

The current and deferred components of income tax expense consisted of the following for the years ended December 31, 2025 and 2024:

2 unchanged sentences

(Dollars in thousands)

Total income tax expense is different from the amounts computed by applying the U.S.

Federal income tax rates in effect to income (loss) before income taxes.

Income taxes paid, net of refunds received, consisted of the following for the years ended December 31, 2025 and 2024:

(Dollars in thousands)

New Hampshire

Total income tax (benefit) expense is different from the amounts computed by applying the U.S.

Federal income tax rates in effect to (loss) income before income tax (benefit) expense.

The reasons for these differences are as follows for the years ended December 31, 2025 and 2024:

6 unchanged sentences

Income on tax exempt securities

*State taxes in New Hampshire account for the majority (greater than 50%) of the tax effect in this category.

Components of deferred tax assets and liabilities at December 31, 2025 and 2024 are as follows:

7 unchanged sentences

Net operating loss carryforward

Equity compensation

valuation allowance

1 unchanged sentence

Deferred tax liabilities:

Prepaid expenses

Net deferred loan costs

2 unchanged sentences

Net deferred tax liabilities, included in other liabilities

The calculation of the Company’s charitable contribution carryforward deferred tax asset is based upon a carryforward of approximately $ 208,000 and $ 654,000 of charitable contributions at December 31, 2024 and 2023, respectively.

The calculation of the Company’s charitable contribution carryforward deferred tax asset is based upon a carryforward of approximately $ 208,000 of charitable contributions at December 31, 2025 and 2024.

During 2024, $ 100,000 of the carryforward was utilized and $ 346,000 expired unused.

1 unchanged sentence

As of December 31, 2025 and 2024, it has been determined that it is more likely than not that the benefit from this charitable contribution carryforward will not be realized prior to expiration.

As a result, a valuation allowance of $ 56,000 and $ 176,000 has been provided on this deferred tax asset for the years ended December 31, 2024 and 2023, respectively.

As a result, a valuation allowance of $ 56,000 has been provided on this deferred tax asset for the years ended December 31, 2025 and 2024.

The ultimate realization of this deferred tax asset is dependent upon the generation of future taxable income.

17 unchanged sentences

The Company records interest and penalties as part of income tax expense.

No interest or penalties were recorded for the years ended December 31, 2024 and 2023.

No material interest or penalties were recorded for the years ended December 31, 2025 and 2024.

The Company’s income tax returns are subject to review and examination by federal and state taxing authorities.

12 unchanged sentences

The discount rate used to determine the Company’s obligation was 5.00 % during the years ended December 31, 2025 and 2024.

The projected rate of salary increase for its current President was 3 % for the years ended December 31, 2024 and 2023.

The projected rate of salary increase for its current Chief Executive Officer was 3 % for the years ended December 31, 2025 and 2024.

On March 5, 2025, the Bank and its current Chief Executive Officer entered into an amendment that limits the annual benefit to $ 65,000 if there is a separation from service for other than at or following a change of control.

Accordingly, as a result of the amendment, the benefit, outside of a change in control, is now fixed and will no longer increase over time.

For the years ended December 31, 2025 and 2024, the expense of this salary retirement plan was $ 7,000 and $ 147,000 , respectively.

13 unchanged sentences

Additionally, the Company has a deferred directors’ 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 December 31, 2024 and 2023, the total deferred directors’ fees amounted to $ 917,000 and $ 718,000 , respectively.

At December 31, 2025 and 2024, the total deferred directors’ fees amounted to $ 1.2 million and $ 917,000 , respectively.

Stock Based Compensation

7 unchanged sentences

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 December 31, 2024 and 2023, the remaining principal balance on the ESOP debt was $ 4.1 million and $ 4.2 million, respectively.

At December 31, 2025 and 2024, the remaining principal balance on the ESOP debt was $ 4.1 million.

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.

18 unchanged sentences

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 grant was $ 239,000 and $ 150,000 , for the years ended December 31, 2024 and 2023, respectively, which provided a tax benefit of $ 64,000 and $ 40,000 , respectively.

The expense recognized for this grant was $ 234,000 for the years ended December 31, 2025 and 2024, which provided a tax benefit of $ 63,000 .

At December 31, 2025 and 2024, total unrecognized compensation expense for this equity incentive plan was $ 96,000 and $ 335,000 with a 0.4 year and 1.4 year weighted average future recognition period, respectively.

2 unchanged sentences

The 2024 Plan provides for the granting of incentive and non-statutory stock options to purchase shares of common stock or the granting of shares of restricted stock awards and restricted stock units.

The 2024 Plan authorizes the issuance or

delivery to participants of up to 392,700 converted shares of common stock.

Of this number, the maximum number of shares of common stock that may be issued pursuant to the exercise of stock options is 280,500 shares, and the maximum number of shares of common stock that may be issued as restricted stock awards or restricted stock units is 112,200 shares.

The 2024 Plan authorizes the issuance or delivery to participants of up to 392,700 converted shares of common stock.

Of this number, the maximum number of shares

of common stock that may be issued pursuant to the exercise of stock options is 280,500 shares, and the maximum number of shares of common stock that may be issued as restricted stock awards or restricted stock units is 112,200 shares.

On December 2, 2024, 280,500 incentive and non-statutory stock options to purchase shares of common stock were granted under the 2024 Plan to directors for their services on the board of directors and certain members of management.

4 unchanged sentences

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 grant was $ 31,000 for the year ended December 31, 2024, which provided a tax benefit of $ 8,000 .

At December 31, 2024, total unrecognized compensation expense for this equity incentive plan was $ 1.0 million, with a 2.9 year weighted average future recognition period.

The expense recognized for this grant was $ 362,000 and $ 31,000 for the years ended December 31, 2025 and 2024, respectively, which provided a tax benefit of $ 93,000 and $ 8,000 , respectively.

At December 31, 2025 and 2024, total unrecognized compensation expense for this equity incentive plan was $ 694,000 and $ 1.0 million, respectively, with a 1.9 and 2.9 year weighted average future recognition period, respectively.

The Company has a policy of using shares held as treasury stock to satisfy share option exercises.

Currently, the Company has a sufficient number of treasury shares to satisfy expected share option exercises.

Currently, the Company has a sufficient number of treasury shares to satisfy expected share option exercises (see Note 17 for more information).

A summary of stock options outstanding as of December 31, 2025 and 2024, and changes during the years then ended is presented below:

17 unchanged sentences

(In Thousands)

Non-vested at beginning of year

Non-vested at end of year

Date of grant

Options granted

Exercise price

Vesting period (1)

Expiration date

Expected volatility

Expected term

Expected dividend yield

Expected forfeiture rate

Risk free interest rate

Fair value per option

(1) Vesting is ratably and the period begins on the date of the grant.

Outstanding at beginning of year

Outstanding at end of year

Fully vested and expected to vest

Exercisable at end of year

On December 2, 2024, 112,200 restricted stock awards were granted under the 2024 Plan to directors for their services on the board of directors and certain members of management at $ 9.29 per share.

2 unchanged sentences

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.

For the year ended December 31, 2024, the expense recognized for this grant was $ 29,000 , which provided a tax benefit of $ 8,000 .

At December 31, 2024, total unrecognized compensation expense for this equity incentive plan was $ 1.0 million, with a 2.9 year weighted average future recognition period.

For the years ended December 31, 2025 and 2024, the expense recognized for this grant was $ 347,000 and $ 29,000 , respectively, which provided a tax benefit of $ 96,000 and $ 8,000 , respectively.

At December 31, 2025 and 2024, total unrecognized compensation expense for this equity incentive plan was $ 666,000 and $ 1.0 million, respectively, with a 1.9 and 2.9 year weighted average future recognition period, respectively.

On June 1, 2023, 2,478 restricted stock awards were granted under the 2021 Plan to a certain member of management at $ 7.99 per share.

6 unchanged sentences

For the years ended December 31, 2025 and 2024, the expense recognized for these grants was $- 0 - and $ 350,000 , respectively, which provided a tax benefit of $- 0 - and $ 108,000 , respectively.

At December 31, 2024 and 2023, total unrecognized compensation expense for this equity incentive plan was $- 0 - and $ 350,000 , respectively.

At December 31, 2025 and 2024, total unrecognized compensation expense for this equity incentive plan was $- 0 -.

A summary of non-vested restricted shares outstanding as of December 31, 2025 and 2024, and changes during the years then ended is presented below:

23 unchanged sentences

The sale-leaseback transaction resulted in a pre-tax gain of $ 2.5 million which is included in non-interest income in the accompanying consolidated statements of loss.

The Company’s operating lease ROU asset and corresponding operating lease liability of $ 5.2 million primarily resulted in an increase in ROU assets and lease liabilities at December 31, 2024 (included in other assets and other liabilities), compared to December 31, 2023.

Additionally, the Company recorded a $ 1.5 million finance lease liability related to this agreement representing the portion of the gain not eligible for immediate recognition.

1 unchanged sentence

Total lease expense for this operating lease was $ 685,000 and $ 292,000 for the years ended December 31, 2025 and 2024, respectively.

During 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 $ 432,000 as of December 31, 2024.

Total lease expense under the operating lease related to these ATMs was $ 77,000 and $ 26,000 for the years ended December 31, 2024 and 2023, respectively.

The Company's obligation under an operating lease related to its leased ATMs expires in August 2030 and has future lease payments of $ 355,000 as of December 31, 2025.

Total lease expense under the operating lease related to these ATMs was $ 77,000 for the years ended December 31, 2025 and 2024.

The Company's obligation under an operating lease related to a branch not included in the sale-leaseback transaction expires in August 2027 and has future lease payments of $ 72,000 as of December 31, 2025.

1 unchanged sentence

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.

On October 3, 2025, a new lease agreement was signed for this branch which, as of December 31, 2025, was in the process of being relocated to a larger space at the opposite end of the plaza where it operates.

The lease agreement became effective as of the date the branch opened to the public, which was January 20, 2026.

The Company's obligation under this operating lease expires in January 2046 and contains four renewal options of five years each.

The base rent in year one of the lease agreement is $ 21.00 per square foot and increases by $ 1.00 per square foot for each of the first five years.

Beginning on the commencement of the sixth year and annually thereafter (including during each renewal period), the base rent will increase by 2.5 % annually.

The following tables summarize information related to the Company’s lease portfolio and other supplemental information as of and for the years ended December 31, 2025 and 2024:

17 unchanged sentences

Total lease cost

The total minimum lease payments due in future periods for lease agreements in effect at December 31, 2024 were as follows:

Th e total minimum lease payments due in future periods for lease agreements in effect at December 31, 2025 were as follows:

As of December 31, 2025

3 unchanged sentences

Total lease liability

Other Comprehensive (Loss) Income

The Company reports certain items as “other comprehensive (loss) income" and reflects total accumulated other comprehensive loss (“AOCI”) in the consolidated financial statements for all years containing elements of other comprehensive income or loss.

Other Comprehensive Income (Loss)

The Company reports certain items as “other comprehensive income (loss)" and reflects total accumulated other comprehensive loss (“AOCI”) in the consolidated financial statements for all years 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:

4 unchanged sentences

(Dollars in thousands)

(Gains) losses on sale of securities available-for-sale

Securities (gains) losses, net

Income tax expense

Gains on sale of securities available-for-sale

Securities gains, net

Income tax (benefit) expense

Net amortization of bond premiums

Interest on debt securities

Income tax expense

Gain on termination of interest rate swaps

Income tax expense

Income tax (benefit) expense

Net interest income on interest rate swaps

Interest expense on deposits

Income tax expense

Income tax (benefit) expense

Total reclassification adjustments

3 unchanged sentences

Securities (1)

Net Unrealized Gains (Losses) on Cash Flow

Net Unrealized Losses on Cash Flow

Balance at December 31, 2023

Other comprehensive income (loss) before

Other comprehensive loss before

reclassification

Amounts reclassified from AOCI

Other comprehensive income (loss)

Other comprehensive loss

Balance at December 31, 2024

Other comprehensive loss before

Other comprehensive income (loss) before

reclassification

Amounts reclassified from AOCI

Other comprehensive loss

Other comprehensive income

Balance at December 31, 2025

19 unchanged sentences

Standby letters of credit

The Company records an ACL for off-balance sheet credit exposures that are not unconditionally cancelable through a charge to the (release) provision for credit losses on the Company’s consolidated statements of loss.

The Company records an ACL for off-balance sheet credit exposures that are not unconditionally cancelable through a charge to the release of credit losses on the Company’s consolidated statements of loss.

At December 31, 2025 and 2024, the ACL for off-balance sheet credit exposures totaled $ 259,000 and $ 199,000 , respectively, and was included in other liabilities on the Company’s consolidated balance sheets.

The (release) provision for credit losses for off-balance sheet credit exposures for the years ended December 31, 2024 and 2023 was $( 192,000 ) and $ 83,000 , respectively.

The provision (release) for credit losses for off-balance sheet credit exposures for the years ended December 31, 2025 and 2024 was $ 59,000 and $( 192,000 ), respectively.

In the ordinary course of business, the Company may be subject to various legal proceedings.

36 unchanged sentences

Equity Incentive Plan

A certain member of management elected to surrender 584 and 549 shares of a vested restricted stock award on November 18, 2024 and 2023, respectively, in lieu of a cash payment for the tax liabilities associated with the time-vesting of their award.

A certain member of management elected to surrender 252 shares of a vested restricted stock award on December 2, 2025 in lieu of a cash payment for the tax liabilities associated with the time-vesting of their award.

This member of management previously elected to surrender 584 shares of a vested restricted stock award on November 18, 2024 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.

3 unchanged sentences

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.

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.

4 unchanged sentences

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 ended in September 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 for the year ended December 31, 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) income 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 years ended December 31, 2024 and 2023, was $- 0 - and $( 112,000 ), respectively.

On July 12, 2024, the Company entered into a two-year interest rate contract that was designated as fair value hedge utilizing a pay fixed interest rate swap to hedge a portion of its index-based brokered deposits included in savings deposits and its change in fair value attributable to the movement in the one-month SOFR.

The carrying amount of the hedged liability located in “savings deposits" includes the savings account balance used to designate hedging relationships in which the hedged items are the stated amount of liabilities anticipated to be outstanding for the designated hedged period.

The carrying amount of the savings deposit used in the hedged relationship was $ 22.1 million at December 31, 2024.

The carrying amount of the savings deposit used in the hedged relationship was $ 21.9 million and $ 22.1 million at December 31, 2025 and 2024, respectively.

Under the "portfolio layer" approach, the Company designated a $ 10.0 million notional amount of portfolio liabilities 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.

At inception, this fair value hedge had a pay fixed rate of 4.33 % and a received rate of 5.32 %.

The change in the fair value of the interest rate swap was reported in other comprehensive (loss) income and was subsequently reclassified into interest expense or income in the period that the hedged transaction affected earnings.

The change in fair value for this derivative instrument for the year ended December 31, 2024 was $( 43,000 ).

For the year ended December 31, 2024, $ 30,000 of interest income was reclassified from AOCI into expense.

At inception, this fair value hedge had a pay fixed rate of 4.33 % and a received rate of 5.32 % ( 3.92 % as of December 31, 2025).

The change in the fair value of the interest rate swap was reported in other comprehensive income (loss) and was subsequently reclassified into interest expense or income in the period that the hedged transaction affected earnings.

The change in fair value for this derivative instrument for the years ended December 31, 2025 and 2024 was $ 96,000 and $( 43,000 ), respectively.

For the years ended December 31, 2025 and 2024, $( 8,000 ) and $ 30,000 of interest (expense) income was reclassified from AOCI into expense, respectively.

Fair Value Hedges of Interest Rate Risk

5 unchanged sentences

In June 2023, the Company entered into a three-year $ 25 million notional amount 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.

On June 6, 2025, the Company terminated this pay fixed interest rate swap which resulted in a swap termination fee of $- 0 - due to the counterparty.

Also, $ 336,000 of cash posted to the counterparty as collateral for this interest rate swap contract was returned to the Company.

The Company terminated this interest rate swap as it was determined that this derivative was no longer meeting the aims of the Company’s interest rate risk management strategy as it was probable that the hedged forecasted transaction – the potential interest rate risk/variability in fair value of the residential loan portfolio attributable to the movement in one-month SOFR – would not occur by the end of the original maturity date of the hedging instrument.

In November 2023, the Company entered into a second three-year $ 25 million notional amount interest rate contract that was also 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.

On November 1, 2024, the Company terminated this second pay fixed interest rate swap which resulted in a swap termination fee of $ 398,000 due to the counterparty.

The $ 398,000 fee is recorded as a residential mortgage loan basis adjustment and is included in 1-4 family residential loans as it is amortized over the remaining expected life of the original swap – 24 months.

Also, $ 1.2 million of cash posted to the counterparty as

collateral for this interest rate swap contract was returned to the Company.

The $ 398,000 fee was recorded as a residential mortgage loan basis adjustment and is included in 1-4 family residential loans as it is amortized over the remaining expected life of the original swap – 24 months.

Also, $ 1.2 million of cash posted to the counterparty as collateral for this interest rate swap contract was returned to the Company.

On June 23, 2025, the Company entered into an 18-month $ 25 million notional amount 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.

At inception, this fair value hedge had a pay fixed rate of 3.78 % and a receive rate of 4.31 % ( 3.92 % as of December 31, 2025).

On September 10, 2025, the Company entered into a 12-month $ 25 million notional amount 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.

At inception, this fair value hedge had a pay fixed rate of 3.62 % and a receive rate of 4.37 % ( 3.92 % as of December 31, 2025).

Additionally, in December 2023, the Company entered into a three-year $ 10 million notional amount interest rate contract that was designated as fair value hedge utilizing a pay fixed interest rate swap to hedge a portion of the securities available-for-sale municipal bond portfolio's change in fair value attributable to the movement in the one-month SOFR.

On December 19, 2024 the Company terminated this pay fixed interest rate swap which resulted in a swap termination fee of $ 32,000 due to the counterparty.

The $ 32,000 fee is recorded as a municipal bond basis adjustment and is included in securities available-for-sale as it is amortized over a period consistent with the amortization of the discounts and premiums associated with the formerly hedged items.

The $ 32,000 fee was recorded as a municipal bond basis adjustment and is included in securities available-for-sale as it is amortized over a period consistent with the amortization of the discounts and premiums associated with the formerly hedged items.

Also, $ 280,000 of cash posted to the counterparty as collateral for this interest rate swap contract was returned to the Company.

5 unchanged sentences

(Dollars in thousands)

Securities available-for-sale, at fair value

The carrying amount of the hedged asset located in “total loans” includes the amortized cost basis of closed portfolios of fixed-rate residential loans used to designate hedging relationships in which the hedged items are the stated amount of assets anticipated to be outstanding for the designated hedged period.

3 unchanged sentences

Under the "portfolio layer" approach, the Company designated a 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 carrying amount of the hedged asset located in “securities available-for-sale, at fair value” includes the principal amount of municipal bonds used to designate hedging relationships in which the hedged items are the stated amount of assets anticipated to be outstanding for the designated hedged period.

At December 31, 2023, the fair value of the principal amount of municipal bonds used in this hedging relationship was approximately $ 19.3 million;

the cumulative basis adjustments associated with these hedging relationships was $ 126,000 ;

and the notional amount of the designated hedged items were $ 10.0 million.

Under the "portfolio layer" approach, the Company designated a $ 10.0 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 notional amounts of these agreements do not represent amounts exchanged by the parties and, thus, are not a measure of potential loss exposure.

6 unchanged sentences

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.

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.

8 unchanged sentences

Interest rate contracts - fair value hedge

Other liabilities

Interest rate contracts - cash flow hedge

7 unchanged sentences

Interest rate contracts - fair value hedge

Interest rate contracts - cash flow hedge

Other liabilities

Total derivatives designated as hedging instruments

Derivatives not designated as hedging instruments:

1 unchanged sentence

Other liabilities

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 for years ended December 31, 2024 and 2023:

Amount of Gain Recognized in Income

(Dollars in thousands)

Location of Gain

Customer loan swaps

Interest and fees on loans

Credit-risk-related Contingent Features

4 unchanged sentences

As such, management believes the risk of incurring credit losses on derivative contracts with institutional counterparties is remote.

As of December 31, 2024 and 2023, the Company posted $ 781,000 and $ 1.6 million, 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.

As of December 31, 2025 and 2024, the Company posted $ 450,000 and $ 781,000 , 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

1 unchanged sentence

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.

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.

18 unchanged sentences

Derivative Assets:

Interest rate contracts - fair values hedges (2)

Customer loan swaps - dealer bank (3)

Derivative Liabilities:

Interest rate contracts (2)

Interest rate contracts - fair value hedges(2)

Interest rate contracts - cash flow hedge (2)

Customer loan swaps - commercial customer (3)

Derivative Liabilities:

Interest rate contracts - fair value hedges (2)

Interest rate contracts - cash flow hedge (2)

Customer loan swaps - dealer bank (3)

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

8 unchanged sentences

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.

This condition could cause an instrument to be

reclassified from one level to another.

Fair value is best determined based upon quoted market prices.

154 unchanged sentences

Advances from Federal Home Loan Bank

Advances from Federal Reserve Bank

Mortgagors’ tax escrow

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(Dollars in thousands)

Interest on ESOP loan

Interest on loan to First Seacoast Bank ESOP

Miscellaneous expense

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Undistributed net loss of First Seacoast Bank

Increase in other liabilities

(Decrease) increase in other liabilities

Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital contribution to First Seacoast Bank

Principal payments received on ESOP

Net cash provided (used) by investing activities

Principal payment received on loan to First Seacoast Bank ESOP

Net cash provided by investing activities

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from the issuance of common stock

Return of capital from conversion of former First Seacoast Bancorp, MHC

Excise tax on stock repurchases

Treasury stock purchases

Net cash (used) provided by financing activities

Treasury stock purchases, net of excise taxes

Net cash used by financing activities

Net change in cash

4 unchanged sentences

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheet of First Seacoast Bancorp, Inc.

and Subsidiaries (the Company) as of December 31, 2024, the related consolidated statements of loss, comprehensive loss, changes in stockholders’ equity, and cash flows for the year then ended and the related notes (collectively, “the financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

We have audited the accompanying consolidated balance sheets of First Seacoast Bancorp, Inc.

Subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of

loss, comprehensive loss, changes in stockholders’ equity, and cash flows for each of the years in the two-year

period ended December 31, 2025, and the related notes to the consolidated financial statements

(collectively, “the financial statements”).

In our opinion, the financial statements present fairly, in all

material respects, the financial position of the Company as of December 31, 2025 and 2024, and the

results of its operations and its cash flows for each of the years in the two-year period ended December

31, 2025, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management.

Our responsibility is to express an opinion on the Company's financial statements based on our audit.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.

Our responsibility is to

express an opinion on the Company's financial statements based on our audits.

We are a public

accounting firm registered with the Public Company Accounting Oversight Board (United States)

(PCAOB) and are required to be independent with respect to the Company in accordance with U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange

Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that

we plan and perform the audits to obtain reasonable assurance about whether the financial statements are

free of material misstatement, whether due to error or fraud.

The Company is not required to have, nor

were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audits

we are required to obtain an understanding of internal control over financial reporting but not for the

purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial

Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides a reasonable basis for our opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial

statements, whether due to error or fraud, and performing procedures that respond to those risks.

procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the

financial statements.

Our audits also included evaluating the accounting principles used and significant

estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

The critical audit matter communicated below is a matter arising from the current period audit of the

financial statements that was communicated or required to be communicated to the audit committee and

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our

especially challenging, subjective, or complex judgments.

The communication of a critical audit matter does not alter in any way our opinion on the financial

statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing

a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Allowance for Credit Losses – Qualitative Factors

As described in Note 5 to the financial statements, the Company has recorded an allowance for credit

losses in the amount of $3.5 million as of December 31, 2024, representing management’s

estimate of credit losses over the remaining expected life of the Company’s loan portfolio as of that

date pursuant to the application of ASC 326.

The Company’s methodology to determine its allowance for credit losses on loans incorporates qualitative assessments of its historical losses, current loan portfolio and economic conditions, the application of forecasted economic conditions,

and model limitations.

We determined that performing procedures relating to these components of the Company’s methodology is a critical audit matter.

The principal considerations for our determination are (i) the application of significant judgment and estimation on the part of management, which in turn led to a high degree of auditor judgment and subjectivity in performing procedures and evaluating audit evidence obtained, and (ii) significant audit effort was necessary in evaluating management’s methodology, significant assumptions and calculations.

losses on loans (ACL) in the amount of $3.4 million as of December 31, 2025, representing

management’s estimate of credit losses over the remaining expected life of the Company’s loan portfolio

as of that date pursuant to the application of ASC 326.

The Company’s methodology to determine its allowance for credit losses on loans incorporates

qualitative assessments of its historical losses, current loan portfolio and economic conditions, the

application of forecasted economic conditions, and model limitations.

We determined that performing

procedures relating to these components of the Company’s methodology is a critical audit matter.

The principal considerations for our determination are (i) the application of significant judgment and

estimation on the part of management, which in turn led to a high degree of auditor judgment and

subjectivity in performing procedures and evaluating audit evidence obtained, and (ii) significant audit

effort was necessary in evaluating management’s methodology, significant assumptions and calculations.

How the Critical Audit Matter was addressed in the Audit

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements.

These procedures included, among others, testing management’s process for determining the qualitative reserve component, evaluating the appropriateness of management’s methodology relating to the qualitative reserve component and testing the completeness and accuracy of data utilized by management.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with

forming our overall opinion on the financial statements.

These procedures included, among others, testing

management’s process for determining the qualitative reserve component, evaluating the appropriateness

of management’s methodology relating to the qualitative reserve component and testing the completeness

and accuracy of data utilized by management.

We have served as the Company's auditor since 2024.

2 unchanged sentences

March 20, 2026

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and Board of Directors

First Seacoast Bancorp, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of First Seacoast Bancorp, Inc.

and Subsidiaries (the Company) as of December 31, 2023, the related consolidated statements of loss, comprehensive loss, changes in stockholders’ equity and cash flows for the year then ended, and the related notes to the consolidated financial statements (collectively, the financial statements).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s financial statements based on our audit.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.

Accordingly, we express no such opinion.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides a reasonable basis for our opinion.

/s/ Baker Newman & Noyes LLC

We served as the Company’s auditor from 2011 to 2024.

Portsmouth, New Hampshire

March 29, 2024

Changes In and Disagreements With Acco untants on Accounting and Financial Disclosure

The information contained under the section "Business Items to be Voted on by Stockholders - Item 3 - Ratification of Appointment of Independent Registered Public Accounting Firm - Change in Independent Registered Public Accounting Firm;

Disagreement with Independent Registered Public Accounting Firm on Accounting and Financial Disclosure" in the Proxy Statement is incorporated herein by reference.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity