Company: SFBC
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001541119-25-000023
Chunk: 74

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 8
Chunk 74
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 reasonable and supportable forecast. The ACL is measured on a collective (segment) basis when similar risk characteristics exist. Historical credit loss experience for both the Company and segment-specific peers provides the basis for the estimate of expected credit losses. Segments are based upon federal call report segmentation. The reserve was applied on a loan-by-loan basis and condensed into the applicable segments reported below.  The ACL is determined using quantitative and qualitative analysis. The quantitative analysis utilizes macroeconomic variables to establish a quantitative relationship between economic conditions and loan performance through an economic cycle. Qualitative adjustments include but are not limited to changes in lending policies; changes in nature and volume of the portfolio; change in staff experience level; changes in the volume or trends of classified loans, delinquencies, and nonaccrual loans; concentration risk; value of underlying collateral; competitive, legal, and regulatory factors; changes in the loan review system; and economic conditions. We evaluate our ACL policy and judgments on an ongoing basis and update them as necessary based on changing conditions.   See “Note 1—Organization and Significant Accounting Policies” in the Company’s 2024 Form 10-K for further information on the Company’s ACL accounting policy.  The following tables summarize the activity in the ACL - loans for the periods indicated (in thousands): Three Months Ended March 31, 2025 BeginningAllowanceCharge-offsRecoveriesProvision for (Release of) Credit LossesEndingAllowanceOne-to-four family$3,025 $— $— $303 $3,328 Home equity307 — — 55 362 Commercial and multifamily1,218 — — (37)1,181 Construction and land992 — — (713)279 Manufactured homes(1)1,172 (19)— 150 1,303 Floating homes1,282 — — 127 1,409 Other consumer(2)401 (8)6 49 448 Commercial business102 — — (19)83 Total$8,499 $(27)$6 $(85)$8,393 (1)During the three months ended March 31, 2025, there was one manufactured home loan originated in 2022 that was charged off and then subsequently foreclosed upon. (2)During the three months ended March 31, 2025, the gross charge-offs of other consumer loans related entirely to deposit