Company: SFBC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001541119-25-000034
Chunk: 101

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 8
Chunk 101
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 and 2024.  MSRs are measured at fair value using significant unobservable inputs (Level 3) on a recurring basis, and a reconciliation of these assets can be found in “Note 6—Mortgage Servicing Rights.

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The following tables present the balance of assets measured at fair value on a nonrecurring basis at the dates indicated (in thousands): Fair Value at June 30, 2025 TotalLevel 1Level 2Level 3OREO and repossessed assets$300 $— $— $300 Collateral dependent loans3,501 — — 3,501  Fair Value at December 31, 2024 TotalLevel 1Level 2Level 3Collateral dependent loans$7,627 $— $— $7,627 There were no liabilities carried at fair value, measured on a recurring or nonrecurring basis, at both June 30, 2025 and December 31, 2024.

Note 6 – Mortgage Servicing Rights

The unpaid principal balance of the Company’s mortgage servicing rights portfolio totaled $414.1 million at June 30, 2025 compared to $425.8 million at December 31, 2024. Of these total balances, the unpaid principal balances of loans serviced for Federal National Mortgage Association (“Fannie Mae”) at June 30, 2025 and December 31, 2024 were $412.1 million and $423.7 million, respectively. The unpaid principal balance of loans serviced for other financial institutions totaled $2.1 million at both June 30, 2025 and December 31, 2024.  Loans serviced for Fannie Mae and others are not included in the Company’s financial statements as they are not assets of the Company.A summary of the change in the balance of mortgage servicing assets during the periods indicated were as follows (in thousands):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Beginning balance, at fair value$4,688 $4,612 $4,769 $4,632 Servicing rights that result from transfers and sale of financial assets30 44 48 89 Changes in fair value:Due to changes in model inputs or assumptions and other(1)(80)(116)(179)(181)Ending balance, at fair value$4,638 $4