First Seacoast Bancorp, Inc. Authorizes Additional Share Repurchases Under Ongoing Stock Repurchase Program

Rhea-AI Summary

First Seacoast Bancorp (FSEA) has authorized additional share repurchases of up to 228,858 shares of common stock under its ongoing stock repurchase program. This follows the April 2024 program which initially authorized 507,707 shares. To date, the company has repurchased 397,008 shares at an average price of $9.15 per share. The new authorization represents approximately 5% of pro forma outstanding shares, assuming the completion of the original authorization. The repurchases will be conducted on the open market, including through an SEC Rule 10b5-1 trading plan, and will expire on December 3, 2025.

Positive

• Already completed repurchase of 397,008 shares at $9.15 per share
• Additional 5% share repurchase authorization demonstrates confidence in company value
• Structured buyback program through Rule 10b5-1 provides systematic execution

Negative

• No guarantee on the number of shares that will ultimately be repurchased
• Company maintains discretion to suspend or discontinue repurchases at any time

Insights

Financial Analyst

This share repurchase expansion signals management's continued confidence in the company's financial position and commitment to returning capital to shareholders. Having already repurchased 397,008 shares at $9.15 per share under the initial program, the additional 228,858 share authorization (representing 5% of pro forma outstanding shares) provides further support for the stock price. The average repurchase price suggests management views the shares as undervalued at current levels. With the program extended through December 2025, the flexible timeline allows for strategic execution while maintaining liquidity. The implementation through Rule 10b5-1 provides a structured approach to avoid market manipulation concerns.

Market Research Analyst

The expanded buyback program demonstrates strong capital management strategy for this small-cap bank. With a market cap of $43.8 million, the additional repurchase authorization represents meaningful support for shareholder value. The successful execution of the initial program, with $3.6 million already deployed in share repurchases, indicates healthy cash flow generation and balance sheet strength. The extended timeframe through 2025 provides ample flexibility while the 10b5-1 structure ensures compliant execution. This move could help improve key metrics like earnings per share and return on equity through share count reduction.

DOVER, N.H.--(BUSINESS WIRE)-- First Seacoast Bancorp, Inc. (the “Company”) (Nasdaq Capital Market: FSEA), the holding company for First Seacoast Bank, announced today it has authorized additional share repurchases, up to an additional 228,858 shares of common stock, under its ongoing stock repurchase program.

Previously announced in April 2024, the original repurchase authorization encompassed 507,707 shares of common stock, representing approximately 10% of the then outstanding shares. To date, the Company has repurchased 397,008 shares at an average price of $9.15 per share. The additional repurchase authorization represents approximately 5% of pro forma outstanding shares assuming the repurchase of the remaining shares subject to the original authorization.

The Company intends to conduct the repurchases on the open market, including by means of a trading plan adopted under SEC Rule 10b5-1, subject to market conditions and other factors. There is no guarantee as to the number of shares that the Company may ultimately repurchase. The additional repurchase authorization will expire on December 3, 2025, regardless of whether all additional shares will have been repurchased. The Company may suspend or discontinue repurchases at any time.

About First Seacoast Bank

First Seacoast Bank is a federally-chartered stock savings bank serving the financial needs of residents of the Seacoast region of New Hampshire. First Seacoast Bank operates four full-service offices in Strafford County, New Hampshire, and one full-service office in Rockingham County, New Hampshire.

Forward-Looking Statements

This press release contains certain forward-looking statements about the stock repurchase program. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include the Company’s inability to execute stock repurchases due to stock market conditions or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241212680869/en/

James R. Brannen

President and Chief Executive Officer

First Seacoast Bancorp, Inc.

(603) 742-4680

Source: First Seacoast Bancorp, Inc.

FAQ

How many additional shares did FSEA authorize for repurchase in its latest announcement?

FSEA authorized the repurchase of up to an additional 228,858 shares of common stock, representing approximately 5% of pro forma outstanding shares.

What is the average price FSEA paid for shares in its current buyback program?

FSEA has repurchased 397,008 shares at an average price of $9.15 per share under the current program.

When does FSEA's additional share repurchase authorization expire?

The additional share repurchase authorization will expire on December 3, 2025.

How many shares were included in FSEA's original April 2024 buyback authorization?

The original buyback authorization from April 2024 included 507,707 shares of common stock, representing approximately 10% of then-outstanding shares.

How will FSEA conduct its share repurchases?

FSEA will conduct repurchases on the open market, including through a trading plan adopted under SEC Rule 10b5-1, subject to market conditions and other factors.