Company: SFBC
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001541119-25-000023
Chunk: 18

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 2
Chunk 18
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 three months ended March 31, 2025, compared to $7.7 million during the three months ended March 31, 2024, as reflected below (dollars in thousands):

 Three Months Ended March 31,AmountChangePercentChange 20252024Salaries and benefits$4,595 $4,543 $52 1.1 %Operations1,365 1,457 (92)(6.3)%Regulatory assessments221 189 32 16.9 %Occupancy437 444 (7)(1.6)%Data processing1,293 1,017 276 27.1 %Net (gain) on OREO and repossessed assets3 6 (3)(50.0)%Total noninterest expense$7,914 $7,656 $258 3.4 %

The change in noninterest expense for the three months ended March 31, 2025, compared to the same period in 2024, were primarily due to: 

•a $276 thousand increase in data processing expenses, due to the amortization of costs associated with various project implementations that began in the third quarter of 2024, as well as the absence of a one-time vendor reimbursement received in the first quarter of 2024; 

•a $52 thousand increase in salaries and benefits, primarily due to higher salaries expense as a result of annual pay increases in the first quarter and lower deferred compensation, partially offset by lower retirement plan expense and lower commission expense. 

•a $32 thousand increase in regulatory assessments, due to a higher estimated accrual for regulatory exam costs; and

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•a $92 thousand decrease in operations expense, primarily due to the recognition of annual fee reimbursements from Mastercard beginning in the first quarter of 2025 and lower expenses across various accounts resulting from ongoing cost saving initiatives and process improvements.  

The efficiency ratio for the quarter ended March 31, 2025 was 86.31%, compared to 89.48% for the quarter ended March 31, 2024. The improvement in the efficiency ratio was primarily due to higher net interest income resulting from lower funding costs.

Income Tax Expense. The provision for income taxes was $291 thousand and $163 thousand for the three months ended March 31, 2025 and March 31, 2024, respectively. The effective tax rates for the three months ended March 31, 202