Company: SFBC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001541119-25-000034
Chunk: 5

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 2
Chunk 5
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AmountChangePercentChangeOne-to-four family$262,672 $269,684 $(7,012)(2.6)%Home equity28,582 26,686 1,896 7.1 Commercial and multifamily398,429 371,516 26,913 7.2 Construction and land49,926 73,077 (23,151)(31.7)Manufactured homes43,112 41,128 1,984 4.8 Floating homes91,448 86,411 5,037 5.8 Other consumer17,259 17,720 (461)(2.6)Commercial business14,779 15,605 (826)(5.3)Premiums for purchased loans662 718 (56)(7.8)Deferred loan fees(2,583)(2,374)(209)8.8 Total loans held-for-portfolio, gross904,286 900,171 4,115 0.5 Allowance for credit losses — loans(8,536)(8,499)(37)0.4 Total loans held-for-portfolio, net$895,750 $891,672 $4,078 0.5 %

The increases in the loan held-for-portfolio were driven primarily by a $26.9 million, or 7.2%, increase in commercial and multifamily loans, driven by new originations and the conversion of construction projects to permanent financing, partially offset by pay downs and normal payment amortization. Home equity loans increased by $1.9 million, or 7.1%, as homeowners likely utilized their home equity lines to access liquidity, particularly in response to elevated living costs and inflationary pressures. Manufactured home loans and floating home loans increased by $2.0 million and $5.0 million, respectively, or 4.8% and 5.8%, primarily the result of seasonality as it relates to floating homes and affordability of manufactured homes in the current market as well internal efficiencies in how we process these loans. The growth in these portfolios were partially offset by a $23.2 million, or 31.7%, decline in construction and land loans largely due to project completions, a slowdown in new financing activities amid higher interest rates, as well as the payoff of a $17.0 million loan that had been risk rated as special mention. One-to-four-family loans and commercial business loans declined primarily