Company: SFBC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001541119-25-000034
Chunk: 133

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 8
Chunk 133
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 thousands):

 Six Months Ended June 30,AmountChangePercentChange 20252024Salaries and benefits$8,916 $9,201 $(285)(3.1)%Operations2,808 3,026 (218)(7.2)Regulatory assessments442 409 33 8.1 Occupancy853 841 12 1.4 Data processing2,547 1,928 619 32.1 Net loss (gain) on OREO and repossessed assets12 (11)23 (209.1)Total noninterest expense$15,578 $15,394 $184 1.2 %

The higher level of noninterest expense for the six months ended June 30, 2025, compared to the same period in 2024, was primarily due to: 

•a $619 thousand increase in data processing expenses due to various project implementations that began amortizing in the third quarter of 2024, as well as new software technology being deployed in 2025 that continues to streamline our operations; 

•a $33 thousand increase in regulatory assessments due to an increase in the accrual beginning in the second quarter of 2024 related to higher forecasted regulatory exam fees; and

•a $23 thousand increase in expenses related to OREO and repossessed assets due to the addition of new property in 2025 and the absence of property sales in the current year.

These increases were partially offset by:

•a $285 thousand decrease in salaries and benefits related to lower incentive compensation expense as a result of less growth in the current period than in the same period one year ago; and

•a $218 thousand decrease in operations expense primarily due to lower expenses across various accounts, resulting from ongoing cost saving initiatives and process improvements.

Income Tax Expense. The provision for income taxes was $488 thousand and $779 thousand for the three and six months ended June 30, 2025, compared to $187 thousand and $350 thousand for the three and six months ended June 30, 2024, respectively. The effective tax rates for the three and six months ended June 30, 2025 were 19.21% and 19.48%, respectively. The effective tax rates for the three and six months ended June 30, 2024 were 19.04% and 18.29%, respectively. The increase in the effective tax rate for the six months