Company: SFBC
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001541119-25-000009
Chunk: 186

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-03-18
Form: 10-K
Item: Item 8
Chunk 186
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1,561 Federal Tax Rate21.0 %21.0 %Tax exempt rate(2.2)(1.4)BOLI(2.3)(2.7)Other1.3 0.5 Effective tax rate17.8 %17.4 %The following table reflects the temporary differences that gave rise to the components of the Company's deferred tax assets at December 31, 2024 and 2023 (in thousands): December 31, 20242023Deferred tax assets  Deferred compensation and supplemental retirement$601 $499 Equity based compensation90 165 Intangible assets25 29 Depreciation54 — Lease liabilities843 1,012 Unrealized loss on securities278 263 Allowance for loan losses1,784 1,840 Other, net101 47 Total deferred tax assets3,776 3,855 Deferred tax liabilitiesPrepaid expenses(160)(171)FHLB stock dividends(40)(40)Depreciation— (39)Mortgage servicing rights(308)(405)Deferred loan costs(594)(652)Right of use assets(782)(944)Total deferred tax liabilities(1,884)(2,251)Net deferred tax asset$1,892 $1,604 At December 31, 2024 and 2023, the Company had no unrecognized tax benefits. During the years ended December 31, 2024 and 2023, the Company recognized no interest or penalties related to income taxes.The Company files an income tax return in the U.S. federal jurisdiction. With few exceptions, the Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2021.

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Note 16—Capital 

Sound Financial Bancorp is a bank holding company under the supervision of the Federal Reserve. Bank holding companies are subject to capital adequacy requirements of the Federal Reserve under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve, except that, pursuant to the Economic Growth, Regulatory Relief and Consumer Protection Act, effective August 30, 2018, a bank holding company with consolidated assets of less than $3.0 billion is generally not subject to the Federal Reserve’s capital regulations, which parallel the FDIC’s capital regulations.The Bank is a state-chartered, federally insured institution and is subject to the capital requirements established by