Company: SFBC
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001541119-25-000023
Chunk: 89

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 8
Chunk 89
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 March 31,20252024Beginning balance, at fair value$4,769 $4,632 Servicing rights that result from transfers and sale of financial assets18 45 Changes in fair value:Due to changes in model inputs or assumptions and other(1)(99)(65)Ending balance, at fair value$4,688 $4,612 (1) Represents changes due to collection/realization of expected cash flows and curtailments.The key economic assumptions used in determining the fair value of mortgage servicing rights at the dates indicated are as follows: March 31, 2025December 31, 2024Prepayment speed (Public Securities Association “PSA” model)125 %125 %Weighted-average life10.8 years10.6 yearsWeighted average discount rate10.0 %10.0 %The amount of contractually specified servicing, late and ancillary fees earned on mortgage servicing rights are included in

mortgage servicing income on the Condensed Consolidated Statements of Income and totaled $269 thousand and $282 thousand for the three months ended March 31, 2025 and 2024, respectively. 

Note 7 – Commitments and Contingencies

In the normal course of operations, the Company engages in a variety of financial transactions that are not recorded in our financial statements. These transactions involve varying degrees of off-balance sheet credit, interest rate and liquidity risks.  

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These transactions are used primarily to manage clients’ requests for funding and take the form of loan commitments and lines of credit.

Note 8 – Borrowings, FHLB Stock and Subordinated Notes

FHLB AdvancesThe following tables present advances from the FHLB as of the dates indicated (dollars in thousands):  March 31, 2025December 31, 2024FHLB advances:Short-term advances$15,000 $— Long-term advances10,000 25,000 Total$25,000 $25,000 March 31, 2025December 31, 2024Fixed Rate:Outstanding balance$25,000 $25,000 Interest rates ranging from4.06 %4.06 %Interest rates ranging to4.27 %4.27 %Weighted average interest rate4.16 %4.16 %The following table presents the maturity of our FHLB advances (dollars in thousands