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First Seacoast Bancorp , Inc. (NASDAQ:FSEA), a federally chartered savings institution with a market capitalization of $48.5 million, announced on Monday an amendment to the compensatory arrangements for its executive James R. Brannen. The bank’s stock, currently trading near its 52-week high of $11.30, appears overvalued according to InvestingPro analysis, despite trading at just 0.73 times book value. According to the filing with the Securities and Exchange Commission, the amendment affects the Salary Continuation Agreement (SCA) for Brannen, who serves at the wholly owned subsidiary, First Seacoast Bank. This development comes as the company faces profitability challenges, with InvestingPro data showing negative returns on equity and assets in the last twelve months. Unlock 6 additional key insights about FSEA with an InvestingPro subscription.
Under the revised terms, if Brannen departs from the company for reasons other than a change in control, he will receive an annual benefit of $64,817. This benefit will be paid over 120 months starting the first day of the second month post-separation, assuming no disability or death occurs. In the event of disability, the benefit will be paid in monthly installments beginning the month after Brannen turns 66. Should Brannen pass away before service separation, his beneficiary will receive a lump sum in the second month following his death. If Brannen dies after separation but before benefit commencement, the beneficiary will receive a lump sum equivalent to the remaining benefits. If death occurs while receiving benefits, the beneficiary will continue to receive the remaining payments.
This fixed annual benefit of $64,817 is based on the accrued amount as of January 1, 2025, and will not increase over time due to the amendment. However, in case of a change in control at First Seacoast Bancorp, Brannen’s annual benefit will be set at $132,209. Despite recent challenges, the stock has shown resilience with a 25% return over the past year, outperforming many peers in the banking sector. If separation occurs within two years after a change in control, he will receive this benefit in a lump sum on the first day of the second month following his departure.
The details of the amendment, which are now part of the official records, can be referred to in the Exhibit 10.1 of the Current Report on Form 8-K. This adjustment in Brannen’s compensation plan reflects the company’s strategic financial management decisions. The information provided is based on a press release statement.
In other recent news, First Seacoast Bancorp announced the extension of employment agreements for three of its top executives. CEO James R. Brannen’s contract has been extended until March 31, 2028, while executives Richard M. Donovan and Timothy F. Dargan will continue in their roles until March 31, 2027. This decision reflects the board of directors’ confidence in the current management team, ensuring leadership stability at the institution. The specific terms of the executives’ compensatory arrangements have not been disclosed in the recent filing. First Seacoast Bancorp is listed on The Nasdaq Stock Market. These developments are based on the company’s recent filings with the United States Securities and Exchange Commission.
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