Company: SFBC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001541119-25-000034
Chunk: 131

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 8
Chunk 131
---
 $2.2 million for the six months ended June 30, 2025, as compared to $2.3 million for the six months ended June 30, 2024, as reflected below (dollars in thousands):

 Six Months Ended June 30,AmountChangePercentChange 20252024Service charges and fee income$1,348 $1,373 $(25)(1.8)%Earnings on BOLI423 311 112 36.0 Mortgage servicing income531 561 (30)(5.3)Fair value adjustment on mortgage servicing rights(179)(181)2 (1.1)Net gain on sale of loans93 164 (71)(43.3)Other income$— $30 $(30)(100.0)%Total noninterest income$2,216 $2,258 $(42)(1.9)%

The reduction in noninterest income for the six months ended June 30, 2025, compared to the same period in 2024, was primarily due to:

•a $25 thousand decrease in service charges and fee income, primarily due to a recovery of potential future lost fee income recorded in the second quarter of 2024 in connection with a vendor error; this decrease was partially offset by an increase in fees associated with new client acquisition in our specialty banking deposit accounts, higher interchange income in the current year, and the Mastercard volume incentive received in the first quarter of 2025;

42

•a $30 thousand decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than originations replaced repayments; 

•a $71 thousand decrease in net gain on sale of loans due to fewer loans sold; and 

•a $30 thousand decrease in other income due to same reason noted above in the comparison of the three-month periods. 

These decreases were partially offset by a $112 thousand increase in earnings from BOLI primarily due to the strategic decision to surrender and exchange existing policies into higher yielding policies in 2025, as well as changes due to market fluctuation.

Noninterest Expense.  Noninterest expense decreased $72 thousand, or 0.9%, to $7.7 million during the three months ended June 30, 2025, compared to $7.7 million during the three months ended June 30, 2024, as reflected below (dollars in thousands):

 Three Months Ended June 30