Company: SFBC
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001541119-25-000009
Chunk: 9

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-03-18
Form: 10-K
Item: Item 1
Chunk 9
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 staff at lower amounts.

Largest Borrowing Relationships. At December 31, 2024, the maximum amount under federal law that we could lend to any one borrower and the borrower's related entities was approximately $24.8 million. Our five largest relationships (including unused commitments) totaled $83.4 million in the aggregate, or 9.3% of our $901.8 million total loan portfolio, at December 31, 2024. At December 31, 2024, the largest lending relationship totaled $19.4 million, consisting of a $16.7 million loan collateralized by multifamily real estate and another loan totaling $2.7 million collateralized by commercial real estate, each with related guarantors. The second largest relationship totaled $17.4 million, consisting of one multifamily construction loan, of which $22 thousand remained unfunded at December 31, 2024. The third largest relationship totaled $17.1 million, consisting of four loans to two businesses totaling $16.9 million collateralized by multifamily and commercial real estate, and a business line of credit totaling $189 thousand with related guarantors. The fourth largest relationship totaled $15.1 million, consisting of four loans to four businesses collateralized by commercial real estate all with a related guarantor. The fifth largest borrowing relationship totaled $14.5 million, consisting of one multifamily real estate loan at December 31, 2024. At December 31, 2024, our 20 next largest lending relationships totaled $181.4 million in the aggregate, with an average loan balance of $9.1 million. All of the foregoing loans were performing in accordance with their repayment terms at December 31, 2024. 

One-to-Four Family Real Estate Lending. One of our primary lending activities is the origination of loans secured by first mortgages on one-to-four family residences, substantially all of which are secured by properties located in our geographic lending area. We originate both fixed-rate and adjustable-rate one-to-four family loans, including jumbo loans (generally loans above the conforming Fannie Mae limits of $766,550 or $981,500, depending on location within our market area). During 2024, our fixed-rate, one-to-four family loan originations decreased $12.5 million, or 34.8%, to $23.5 million compared to $36.0 million in 2023. Additionally, one-to