Company: SFBC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001541119-25-000034
Chunk: 26

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 2
Chunk 26
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30, 2024. The improvement in the efficiency ratio was primarily due to higher net interest income resulting from lower funding costs and the recognition of interest income on nonaccrual loans that paid off during the quarter, as well as lower noninterest expense.

Noninterest expense increased $184 thousand, or 1.2%, to $15.6 million during the six months ended June 30, 2025, compared to $15.4 million during the six months ended June 30, 2024, as reflected below (dollars in thousands):

 Six Months Ended June 30,AmountChangePercentChange 20252024Salaries and benefits$8,916 $9,201 $(285)(3.1)%Operations2,808 3,026 (218)(7.2)Regulatory assessments442 409 33 8.1 Occupancy853 841 12 1.4 Data processing2,547 1,928 619 32.1 Net loss (gain) on OREO and repossessed assets12 (11)23 (209.1)Total noninterest expense$15,578 $15,394 $184 1.2 %

The higher level of noninterest expense for the six months ended June 30, 2025, compared to the same period in 2024, was primarily due to: 

•a $619 thousand increase in data processing expenses due to various project implementations that began amortizing in the third quarter of 2024, as well as new software technology being deployed in 2025 that continues to streamline our operations; 

•a $33 thousand increase in regulatory assessments due to an increase in the accrual beginning in the second quarter of 2024 related to higher forecasted regulatory exam fees; and

•a $23 thousand increase in expenses related to OREO and repossessed assets due to the addition of new property in 2025 and the absence of property sales in the current year.

These increases were partially offset by:

•a $285 thousand decrease in salaries and benefits related to lower incentive compensation expense as a result of less growth in the current period than in the same period one year ago; and

•a $218 thousand decrease in operations expense primarily due to lower expenses across various accounts, resulting from ongoing cost saving initiatives and process improvements.

Income Tax Expense. The provision for income taxes was $488 thousand and $779 thousand for the three and six