Company: SFBC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001541119-25-000041
Chunk: 6

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 2
Chunk 6
---
 in new financing activities amid higher interest rates, as well as the payoff of a $17.0 million loan that had been risk rated as special mention. One-to-four-family loans and commercial business loans declined primarily due to loan repayments exceeding new originations.

At September 30, 2025, our loan portfolio, net of deferred loan fees, remained well-diversified. At that date, commercial and multifamily real estate loans accounted for 44.8% of total loans, one-to-four family loans, including home equity loans, accounted for 31.5% of total loans, commercial business loans accounted for 1.6% of total loans, and consumer loans, consisting of manufactured homes, floating homes, and other consumer loans, accounted for 16.3% of total loans. Construction and land loans accounted for 5.8% of total loans at September 30, 2025. 

Loans held-for-sale totaled $271 thousand at September 30, 2025, compared to $487 thousand at December 31, 2024. The decrease was primarily due to timing of mortgage originations and sales. 

Allowance for Credit Losses.  

The following table reflects the activity in our allowance for credit losses (“ACL”) during the periods indicated (dollars in thousands):

 Three Months Ended September 30,Nine Months Ended September 30, 2025202420252024ACL — Loans:Balance at beginning of period$8,536 $8,493 $8,499 $8,760 Charge-offs(57)(20)(107)(103)Recoveries20 6 28 16 Net charge-offs(37)(14)(79)(87)Provision for (release of) credit losses65 106 144 (88)Balance at end of period$8,564 $8,585 $8,564 $8,585 Reserve for Unfunded Commitments:Balance at beginning of period122 245 234 193 Provision for (release of) credit losses(10)(98)(122)(46)Balance at end of period112 147 112 147 ACL$8,676 $8,732 $8,676 $8,732 Ratio of net charge-offs during the period to average loans outstanding during the period(0.02)%(0.01)%(0.01)%(0.01)%

Our ACL — loans increased $65