Company: SFBC
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001541119-25-000023
Chunk: 6

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 2
Chunk 6
---
 date, commercial and multifamily real estate loans accounted for 44.2% of total loans, one-to-four family loans, including home equity loans, accounted for 32.6% of total loans, commercial business loans accounted for 1.7% of total loans, and consumer loans, consisting of manufactured homes, floating homes, and other consumer loans, accounted for 16.7% of total loans. Construction and land loans accounted for 4.8% of total loans at March 31, 2025. 

Loans held-for-sale totaled $2.27 million at March 31, 2025, compared to $487 thousand at December 31, 2024. The increase was primarily due to timing of mortgage originations and sales. 

Allowance for Credit Losses.  

The following table reflects the activity in our allowance for credit losses (“ACL”) during the periods indicated (dollars in thousands):

 Three Months Ended March 31, 20252024ACL — Loans:Balance at beginning of period$8,499 $8,760 Charge-offs(27)(62)Recoveries6 6 Net charge-offs(21)(56)(Release of) provision for credit losses(85)(106)Balance at end of period$8,393 $8,598 Reserve for Unfunded Commitments:Balance at beginning of period234 193 (Release of) provision for credit losses(118)73 Balance at end of period116 266 ACL$8,509 $8,864 Ratio of net charge-offs during the period to average loans outstanding during the period(0.01)%(0.03)%

Our ACL — loans decreased $106 thousand, or 1.2%, to $8.4 million at March 31, 2025, from $8.5 million at December 31, 2024. The decrease in the ACL - loans was primarily a result of a decrease in the balance of our loan portfolio, partially offset by higher reserves on our portfolio of other consumer loans and residential loans due to qualitative adjustments for uncertainty in market conditions.  See “Comparison of Results of Operations for the Three Months Ended March 31, 2025 and 2024 — Provision for Credit Losses.” 

30

The following tables show certain credit ratios at and for the dates and periods indicated and the components of each ratio's calculation (dollars in thousands).

 At March 31, 2025At