Company: SFBC
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001541119-25-000009
Chunk: 161

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-03-18
Form: 10-K
Item: Item 8
Chunk 161
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 to additional problem loan reporting to management every three months.When we classify problem assets as either substandard or doubtful, we may determine that these assets should be individually analyzed if they no longer share common risk characteristics with the rest of the portfolio. When we classify problem assets as a loss, we are required to charge off those assets in the period in which they are deemed uncollectible. Our determination as to the classification of our assets and the amount of our valuation allowances is subject to review by the FDIC (the Bank’s federal regulator) and the WDFI (the Bank’s state banking regulator), which can order the establishment of additional credit loss allowances. Assets which do not currently expose us to sufficient risk to warrant classification as substandard or doubtful but possess weaknesses are required to be designated as special mention. There were no loans classified as doubtful or loss as of December 31, 2024 and 2023. The following tables present the internally assigned grades as of December 31, 2024 and December 31, 2023, by type of loan and origination year (in thousands):

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At December 31, 2024Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis Converted to Term20242023202220212020PriorTotalOne-to-four family:Pass$26,327 $22,470 $78,427 $98,379 $14,095 $29,534 $— $— $269,232 Substandard— — 259 104 — 214 — — 577 Total one-to-four family$26,327 $22,470 $78,686 $98,483 $14,095 $29,748 $— $— $269,809 Home equity:Pass$3,084 $2,951 $2,420 $908 $210 $1,320 $14,578 $1,069 $26,540 Substandard— — — — — 56 234 66 356 Total home equity$3,084 $2,951 $2,420 $908 $210 $1,376 $14,812 $1,135 $26,896 Commercial and multifamily:Pass$34,844 $20,736 $