Company: SFBC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001541119-25-000034
Chunk: 6

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 2
Chunk 6
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 due to loan repayments exceeding new 

31

originations.

At June 30, 2025, our loan portfolio, net of deferred loan fees, remained well-diversified. At that date, commercial and multifamily real estate loans accounted for 44.0% of total loans, one-to-four family loans, including home equity loans, accounted for 32.1% of total loans, commercial business loans accounted for 1.6% of total loans, and consumer loans, consisting of manufactured homes, floating homes, and other consumer loans, accounted for 16.8% of total loans. Construction and land loans accounted for 5.5% of total loans at June 30, 2025. 

Loans held-for-sale totaled $2.03 million at June 30, 2025, compared to $487 thousand at December 31, 2024. The increase was primarily due to timing of mortgage originations and sales. 

Allowance for Credit Losses.  

The following table reflects the activity in our allowance for credit losses (“ACL”) during the periods indicated (dollars in thousands):

 Three Months Ended June 30,Six Months Ended June 30, 2025202420252024ACL — Loans:Balance at beginning of period$8,393 $8,598 $8,499 $8,760 Charge-offs(23)(21)(50)(83)Recoveries2 4 8 10 Net charge-offs(21)(17)(42)(73)Provision for (release of) credit losses164 (88)79 (194)Balance at end of period$8,536 $8,493 $8,536 $8,493 Reserve for Unfunded Commitments:Balance at beginning of period116 266 234 193 Provision for (release of) credit losses6 (21)(112)52 Balance at end of period122 245 122 245 ACL$8,658 $8,738 $8,658 $8,738 Ratio of net charge-offs during the period to average loans outstanding during the period(0.01)%(0.01)%(0.01)%(0.02)%

Our ACL — loans increased $37 thousand, or 0.4%, to $8.5 million at June 30, 2025, from $8.5 million at December 31, 202