Company: SFBC
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001541119-25-000023
Chunk: 111

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 8
Chunk 111
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I, primarily due to the strategic decision to surrender and exchange existing policies for higher yielding policies, partially offset by market fluctuations that reduced the value of the policies;

•a $13 thousand decrease in mortgage servicing income, resulting from portfolio paydowns occurring at a faster pace than new originations; 

•a $34 thousand decrease in the fair value adjustment on mortgage servicing rights, due to a smaller servicing portfolio; and 

•a $41 thousand decrease in net gain on sale of loans, due to a lower volume of loans sold during the first quarter of 2025. 

Noninterest Expense.  Noninterest expense increased $258 thousand, or 3.4%, to $7.9 million during the three months ended March 31, 2025, compared to $7.7 million during the three months ended March 31, 2024, as reflected below (dollars in thousands):

 Three Months Ended March 31,AmountChangePercentChange 20252024Salaries and benefits$4,595 $4,543 $52 1.1 %Operations1,365 1,457 (92)(6.3)%Regulatory assessments221 189 32 16.9 %Occupancy437 444 (7)(1.6)%Data processing1,293 1,017 276 27.1 %Net (gain) on OREO and repossessed assets3 6 (3)(50.0)%Total noninterest expense$7,914 $7,656 $258 3.4 %

The change in noninterest expense for the three months ended March 31, 2025, compared to the same period in 2024, were primarily due to: 

•a $276 thousand increase in data processing expenses, due to the amortization of costs associated with various project implementations that began in the third quarter of 2024, as well as the absence of a one-time vendor reimbursement received in the first quarter of 2024; 

•a $52 thousand increase in salaries and benefits, primarily due to higher salaries expense as a result of annual pay increases in the first quarter and lower deferred compensation, partially offset by lower retirement plan expense and lower commission expense. 

•a $32 thousand increase in regulatory assessments, due to a higher estimated accrual for regulatory exam costs; and

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•a $92 thousand decrease in operations expense, primarily due to the recognition of annual fee