Company: SFBC
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001541119-25-000009
Chunk: 178

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-03-18
Form: 10-K
Item: Item 8
Chunk 178
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 and 2023. MSRs are measured at fair value using significant unobservable input (Level 3) on a recurring basis and a reconciliation of this asset can be found in “Note 6—Mortgage Servicing Rights.”The following table presents the balance of assets measured at fair value on a nonrecurring basis (in thousands): Fair Value at December 31, 2024DescriptionTotalLevel 1Level 2Level 3OREO and repossessed assets$— $— $— $— Collateral-dependent loans7,627 — — 7,627  Fair Value at December 31, 2023DescriptionTotalLevel 1Level 2Level 3OREO and repossessed assets$575 $— $— $575 Impaired loans3,656 — — 3,656 There were no liabilities carried at fair value, measured on a recurring or nonrecurring basis, at December 31, 2024 and 2023.

Note 12—Leases

We have operating leases for branch locations, loan production offices, and our corporate office. The term for our leases begins on the date we become legally obligated for the rent payments or we take possession of the building premises, whichever is earlier. Generally, our real estate leases have initial terms of three to 10 years and typically include one renewal option. Our leases have remaining terms of five months to 4.5 years. The operating leases require us to pay property taxes and operating expenses for the properties.

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The following table represents the Consolidated Balance Sheet classification of the Company’s lease right of use assets and lease liabilities at December 31, 2024 and 2023 (in thousands):December 31,20242023Operating lease right of use assets$3,725 $4,496 Operating lease liabilities4,013 4,821 The following table represents the components of lease expense for the years ended December 31, 2024 and 2023 (in thousands):Year Ended December 31,20242023Operating lease expense:Office leases$1,083 $1,078 Sublease income(4)(11)Net lease expense$1,079 $1,067 The following table represents the maturity of lease liabilities at December 31, 2024 (in thousands):December 31, 2024Office LeasesOperating Lease Commitments2025$1,024