Company: SFBC
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001541119-25-000023
Chunk: 98

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 8
Chunk 98
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Loans.  Loans held-for-portfolio, net, decreased $13.8 million, or 1.6%, to $877.8 million at March 31, 2025 from $891.7 million at December 31, 2024. 

The following table reflects the changes in the mix of our loan portfolio at March 31, 2025, as compared to December 31, 2024 (dollars in thousands):

 March 31,2025December 31,2024AmountChangePercentChangeOne-to-four family$262,457 $269,684 $(7,227)(2.7)%Home equity28,112 26,686 1,426 5.3 Commercial and multifamily392,798 371,516 21,282 5.7 Construction and land42,492 73,077 (30,585)(41.9)Manufactured homes42,448 41,128 1,320 3.2 Floating homes86,626 86,411 215 0.2 Other consumer18,224 17,720 504 2.8 Commercial business14,690 15,605 (915)(5.9)Premiums for purchased loans688 718 (30)(4.2)Deferred loan fees(2,309)(2,374)65 (2.7)Total loans held-for-portfolio, gross886,226 900,171 (13,945)(1.5)Allowance for credit losses — loans(8,393)(8,499)106 (1.2)Total loans held-for-portfolio, net$877,833 $891,672 $(13,839)(1.6)%

The decreases in the loan portfolio were driven primarily by decreases in construction and land loans and, to a lesser extent, one-to-four family and commercial business loans. The $30.6 million, or 41.9%, decline in construction and land loans was the primarily driver of the overall decrease in the loan portfolio as of March 31, 2025, compared to December 31, 2024. This decline was largely due to project completions, a slowdown in new financing activities amid higher interest rates, and the payoff of a $17.0 million loan that had been risk rated as special mention. In addition, one-to-four-family loans and commercial business loans declined by $