Company: SFBC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001541119-25-000034
Chunk: 44

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 1
Chunk 44
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, 2025, there were two collateral dependent consumer mortgage loans, totaling $166 thousand, that were in process of foreclosure.

The following table presents a summary of activity in the ACL on loans and the reserve for unfunded loan commitments for the periods indicated (in thousands):

12

Three Months Ended June 30,20252024ACL - LoansReserve for Unfunded Loan CommitmentsACL ACL - LoansReserve for Unfunded Loan CommitmentsACLBalance at beginning of period$8,393 $116 $8,509 $8,598 $266 $8,864 Provision for (release of) credit losses during the period164 6 170 (88)(21)(109)Net charge-offs during the period(21)— (21)(17)— (17)Balance at end of period$8,536 $122 $8,658 $8,493 $245 $8,738 Six Months Ended June 30,20252024ACL - LoansReserve for Unfunded Loan CommitmentsACLACL - LoansReserve for Unfunded Loan CommitmentsACLBalance at beginning of period$8,499 $234 $8,733 $8,760 $193 $8,953 Provision for (release of) credit losses during the period79 (112)(33)(194)52 (142)Net charge-offs during the period(42)— (42)(73)— (73)Balance at end of period$8,536 $122 $8,658 $8,493 $245 $8,738 Accrued interest receivable on loans receivable totaled $3.6 million at June 30, 2025 and $3.4 million at December 31, 2024, in the accompanying Condensed Consolidated Balance Sheets. Accrued interest receivable is excluded from the ACL. The ACL is measured using the current expected credit losses (“CECL”) approach for financial instruments measured at amortized cost and for other commitments to extend credit. CECL requires the immediate recognition of estimated credit losses expected to occur over the estimated remaining life of the asset. The forward-looking concept of CECL requires loss estimates to consider historical experience, current conditions and reasonable and supportable forecasts. We estimate the ACL using relevant information from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast. The ACL is