Company: SFBC
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001541119-25-000023
Chunk: 73

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 8
Chunk 73
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-for-portfolio, gross886,226 900,171 Allowance for credit losses — loans(8,393)(8,499)Total loans held-for-portfolio, net$877,833 $891,672 (1)Includes premiums resulting from purchased loans of $386 thousand related to one-to-four family loans, $236 thousand related to commercial and multifamily loans, and $66 thousand related to commercial business loans as of March 31, 2025. Includes premiums resulting from purchased loans of $404 thousand related to one-to-four family loans, $244 thousand related to commercial and multifamily loans, and $70 thousand related to commercial business loans as of December 31, 2024.

As of March 31, 2025, there was one collateral dependent consumer mortgage loan, totaling $260 thousand, that was 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):Three Months Ended March 31,20252024ACL - LoansReserve for Unfunded Loan CommitmentsACL ACL - LoansReserve for Unfunded Loan CommitmentsACLBalance at beginning of period$8,499 $234 $8,733 $8,760 $193 $8,953 (Release of) provision for credit losses during the period(85)(118)(203)(106)73 (33)Net charge-offs during the period(21)— (21)(56)— (56)Balance at end of period$8,393 $116 $8,509 $8,598 $266 $8,864 Accrued interest receivable on loans receivable totaled $3.3 million at March 31, 2025 and $3.4 million at December 31, 2024, in the accompanying Condensed Consolidated Balance Sheets. Accrued interest receivable is excluded from the ACL. 

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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