Company: SFBC
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001541119-25-000009
Chunk: 14

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-03-18
Form: 10-K
Item: Item 1
Chunk 14
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 up to 100% of the value of the collateral, minus any senior liens on the property. Home equity lines of credit are typically originated for up to $250,000 with 

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an adjustable rate of interest, based on the one-year Treasury Bill rate or the Wall Street Journal Prime rate, plus a margin. Home equity lines of credit generally have a three-, five-, ten- or 12-year draw period, during which time the funds may be paid down and redrawn up to the committed amount. Once the draw period has lapsed, the payment is amortized over either a 12-, 15-, 19- or 21-year period based on the loan balance at that time. We charge a $50 annual fee on each home equity line of credit and require monthly interest-only payments on the entire amount drawn during the draw period.

Approximately $5.9 million of our home equity line of credit products at December 31, 2024, allow an amount up to the credit limit to be converted to up to three installment loans at a fixed rate prior to the lapse of the draw period. The option to convert a portion of a home equity line of credit into fixed-rate installment loans prior to the end of the draw period offers borrowers valuable financial flexibility, stability, and tailored financing options, enhancing the overall appeal and usefulness of the home equity product. At December 31, 2024, home equity loans totaled $26.7 million, or 3.0% of our total loan portfolio, compared to $23.1 million, or 2.6% of our total loan portfolio at December 31, 2023. Adjustable-rate home equity lines of credit at December 31, 2024 totaled $15.6 million, or 1.7% of our total loan portfolio, compared to $13.1 million, or 1.5% of our total loan portfolio at December 31, 2023. At December 31, 2024, unfunded commitments on home equity lines of credit totaled $19.4 million.

Our fixed-rate home equity loans generally have terms of up to 20 years and are fully amortizing. At December 31, 2024, fixed-rate home equity loans totaled $11.0 million, or 1.2% of our gross loan portfolio, compared to $9.9 million, or 1.1% of our total loan portfolio at December 31, 2023.

Commercial and Multifamily