Company: SFBC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001541119-25-000041
Chunk: 89

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 89
---
 credit that was charged off, with the remainder of the gross charge-offs of other consumer loans related entirely to deposit overdrafts. 

14

Nine Months Ended September 30, 2024 BeginningAllowanceCharge-offsRecoveriesProvision for (Release of) Credit LossesEndingAllowanceOne-to-four family$2,630 $— $— $182 $2,812 Home equity185 — — 29 214 Commercial and multifamily1,070 — — 215 1,285 Construction and land1,349 — — (579)770 Manufactured homes(1)971 (23)— 43 991 Floating homes2,022 — — 38 2,060 Other consumer(2)426 (80)16 (5)357 Commercial business107 — — (11)96 Total$8,760 $(103)$16 $(88)$8,585 (1)During the nine months ended September 30, 2024, there was one manufactured home loan for $23 thousand originated in 2020 that was charged off and then subsequently foreclosed upon. (2)During the nine months ended September 30, 2024, the gross charge-offs of other consumer loans 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