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

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 2
Chunk 25
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 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,AmountChangePercentChange 20252024Salaries and benefits$4,321 $4,658 $(337)(7.2)%Operations1,443 1,569 (126)(8.0)%Regulatory assessments222 220 2 0.9 %Occupancy416 397 19 4.8 %Data processing1,254 910 344 37.8 %Net loss (gain) on OREO and repossessed assets9 (17)26 (152.9)%Total noninterest expense$7,665 $7,737 $(72)(0.9)%

The lower level of noninterest expense for the three months ended June 30, 2025, compared to the same period in 2024, was primarily due to: 

•a $337 thousand decrease in salaries and benefits related to lower deferred salaries and lower incentive expense as a result of lower growth in the current quarter than in the same quarter one year ago; and

•a $126 thousand decrease in operations expense primarily due to lower expenses across various accounts, resulting from ongoing cost saving initiatives and process improvements.

These decreases were partially offset by:

•a $344 thousand increase in data processing expenses due to various project implementations that began amortizing in the third quarter of 2024, as well as new software technology being deployed in 2025 that continues to streamline our operations; 

•a $19 thousand increase in occupancy expense due to higher building lease charges in 2025; and

•a $26 thousand increase in expenses related to OREO and repossessed assets due to the addition of a new property in the second quarter of 2025 and the absence of property sales in the same quarter last year. 

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The efficiency ratio for the quarter ended June 30, 2025 was 73.88%, compared to 89.86% for the quarter ended June