Company: SFBC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001541119-25-000034
Chunk: 89

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 8
Chunk 89
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 concerns. Loans identified as watch, special mention, substandard, doubtful, or loss are subject to additional problem loan reporting to management every three months.When we classify problem assets as either substandard or doubtful, we may determine that these assets should be individually analyzed if they no longer share common risk characteristics with the rest of the portfolio. When we classify problem assets as a loss, we are required to charge off those assets in the period in which they are deemed uncollectible. Our determination as to the classification of our assets and the amount of our valuation allowances is subject to review by the FDIC (the Bank’s federal regulator) and the Washington Department of Financial Institutions (the Bank’s state banking regulator), which can order the establishment of additional credit loss allowances. Assets which do not currently expose us to sufficient risk to warrant classification as substandard or doubtful but possess weaknesses are required to be designated as special mention. There were no loans classified as doubtful or loss as of June 30, 2025 and December 31, 2024.

The following tables present the internally assigned grades as of June 30, 2025 and December 31, 2024, by type of loan and origination year (in thousands): 

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At June 30, 2025Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis Converted to Term20252024202320222021PriorTotalOne-to-four family:Pass$15,187 $19,747 $17,857 $71,508 $95,097 $40,767 $— $— $260,163 Substandard— — 1,118 229 901 331 — — 2,579 Total one-to-four family$15,187 $19,747 $18,975 $71,737 $95,998 $41,098 $— $— $262,742 Home equity:Pass$430 $2,419 $2,804 $2,336 $846 $1,417 $17,177 $956 $28,385 Substandard— — — — — 53 228 134 415 Total home equity$430 $2,419 $2,804 $2,336 $846 $1,470 $17,405