Company: SFBC
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001541119-25-000009
Chunk: 28

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-03-18
Form: 10-K
Item: Item 1
Chunk 28
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 and multifamily— — Construction and land— — Manufactured homes20 42 Floating homes— — Other consumer70 76 Commercial business— — Total performing modified loans$1,265 $1,522 

(1)Nonaccrual loans included $66 thousand and $333 thousand in modified loans to borrowers experiencing financial difficulty at December 31, 2024 and 2023, respectively. We had no accruing loan 90 days or more delinquent at December 31, 2024 and 2023.

Nonaccrual loans, including nonaccrual modified loans to borrowers experiencing financial difficulty, increased $3.9 million to $7.5 million at December 31, 2024, compared to $3.6 million at December 31, 2023. The increase was primarily due to the placement of an additional $9.3 million of loans on nonaccrual status, including a $3.7 million matured commercial real estate loan where the borrower is in the process of securing alternative financing, and a $2.4 million floating home loan, both of which are well secured. 

These additions were partially offset by payoffs totaling $4.2 million, the return of $784 thousand of loans to accrual status, charge-offs of $142 thousand, the sale of two OREO properties for $690 thousand, and regular loan payments. Our largest nonperforming loan relationship at December 31, 2024 was the $3.7 million commercial real estate loan noted above. In addition, there were eight manufactured home loans, one floating loan, one business term, one commercial real estate, one home equity loan, one land loan and five other consumer loans classified as nonperforming at December 31, 2024.

See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Financial Condition at December 31, 2024 Compared to December 31, 2023—Delinquencies and Nonperforming Assets" contained in Item 7 of this report on Form 10-K for more information on troubled assets.

18

Modified Loans to Borrowers Experiencing Financial Difficulty. We occasionally modify loans to alleviate temporary difficulties in the borrower’s financial condition and/or constraints on the borrower’s ability to repay the loan, and to minimize our potential losses. We refer to these modifications as modified loans to troubled borrowers. Modifications may include changes in the amortization terms of the loan