Company: SFBC
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001541119-25-000023
Chunk: 110

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 8
Chunk 110
---
 influenced by uncertainty in the market. The release of credit losses on unfunded loan commitments during the current quarter related to overall fewer loan commitments. Net charge-offs for the three months ended March 31, 2025 totaled $21 thousand, compared to $56 thousand for three months ended March 31, 2024. 

While we believe the estimates and assumptions used in our determination of the adequacy of the ACL are reasonable, there can be no assurance that such estimates and assumptions will not be proven incorrect in the future, that the actual amount of future provisions will not exceed the amount of past provisions or that any increased provisions that may be required will not have a material adverse impact on our financial condition and results of operations. A further decline in national and local economic conditions, as a result of the effects of inflation, and a potential recession or slowed economic growth, among other factors, could result in a material increase in the ACL and have a material adverse impact on our financial condition and results of operations. In addition, the determination of the amount of our ACL is subject to review by bank regulators as part of the routine examination process, which may result in the adjustment of reserves based upon their judgment of information available to them at the time of their examination.

37

Noninterest Income.  Noninterest income remained relatively unchanged at $1.1 million for both the three months ended March 31, 2025 and March 31, 2024, as reflected below (dollars in thousands):

 Three Months Ended March 31,AmountChangePercentChange 20252024Service charges and fee income$684 $612 $72 11.8 %Earnings on BOLI195 177 18 10.2 Mortgage servicing income269 282 (13)(4.6)Fair value adjustment on mortgage servicing rights(99)(65)(34)52.3 Net gain on sale of loans49 90 (41)(45.6)Total noninterest income$1,098 $1,096 $2 0.2 %

The changes in noninterest income for the three months ended March 31, 2025, compared to the same period in 2024 were primarily due to:

•a $72 thousand increase in service charges and fee income, primarily due to a volume incentive paid by Mastercard in the first quarter of 2025 and higher debit card interchange income;

•an $18 thousand increase in earnings from BOL