Company: SFBC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001541119-25-000034
Chunk: 102

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 8
Chunk 102
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,540 $4,638 $4,540 (1) Represents changes due to collection/realization of expected cash flows and curtailments.The key economic assumptions used in determining the fair value of mortgage servicing rights at the dates indicated are as follows: June 30, 2025December 31, 2024Prepayment speed (Public Securities Association “PSA” model)125 %125 %Weighted-average life10.4 years10.6 yearsWeighted average discount rate10.0 %10.0 %

The amount of contractually specified servicing, late and ancillary fees earned on mortgage servicing rights, which are included in mortgage servicing income on the Condensed Consolidated Statements of Income, totaled $263 thousand and $531 thousand for three and six months ended June 30, 2025, and $279 thousand and $561 thousand for the three and six months ended June 30, 2024, respectively. 

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Note 7 – Commitments and Contingencies

In the normal course of operations, the Company engages in a variety of financial transactions that are not recorded in our financial statements. These transactions involve varying degrees of off-balance sheet credit, interest rate and liquidity risks.  These transactions are used primarily to manage clients’ requests for funding and take the form of loan commitments and lines of credit.

Note 8 – Borrowings, FHLB Stock and Subordinated Notes

FHLB AdvancesThe following tables present advances from the FHLB as of the dates indicated (dollars in thousands):  June 30, 2025December 31, 2024FHLB advances:Short-term advances (one year or less)$15,000 $— Long-term advances (over one year)10,000 25,000 Total$25,000 $25,000 June 30, 2025December 31, 2024Fixed Rate:Outstanding balance$25,000 $25,000 Interest rates ranging from4.06 %4.06 %Interest rates ranging to4.27 %4.27 %Weighted average interest rate4.16 %4.16 %The following table presents the maturity of our FHLB advances (dollars in thousands):June 30,2025Remainder of 2025$— 202615,000 2027— 202810,000 2029