Company: SFBC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001541119-25-000034
Chunk: 47

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 1
Chunk 47
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 LossesEndingAllowanceOne-to-four family$2,630 $— $— $168 $2,798 Home equity185 — — 14 199 Commercial and multifamily1,070 — — 60 1,130 Construction and land1,349 — — (277)1,072 Manufactured homes(1)971 (23)— (10)938 Floating homes2,022 — — (112)1,910 Other consumer(2)426 (60)10 (28)348 Commercial business107 — — (9)98 Unallocated— — — — — Total$8,760 $(83)$10 $(194)$8,493 (1)During the six months ended June 30, 2024, there was one manufactured home loan that was charged off and then subsequently foreclosed upon. (2)During the six months ended June 30, 2024, the gross charge-offs related entirely to deposit overdrafts that were charged off. 

Credit Quality Indicators.  Federal regulations provide for the classification of lower quality loans and other assets (such as OREO and repossessed assets), as well as debt and equity securities considered as "substandard," "doubtful" or "loss." An asset is considered "substandard" if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. "Substandard" assets include those characterized by the "distinct possibility" that the insured institution will sustain "some loss" if the deficiencies are not corrected. Assets classified as "doubtful" have all of the weaknesses in those classified "substandard," with the added characteristic that the weaknesses present make "collection or liquidation in full," on the basis of currently existing facts, conditions and values, "highly questionable and improbable." Assets classified as "loss" are those considered "uncollectible" and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted.Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading. The grades for watch and special mention loans are used by the Company to identify and track potential problem loans which do not rise to the levels described for substandard, doubtful, or loss. These are loans which