Company: SFBC
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001541119-25-000009
Chunk: 17

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-03-18
Form: 10-K
Item: Item 1
Chunk 17
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 commercial real estate other (1)50,728 13.7 56,630 18.0 Warehouses55,042 14.8 58,544 18.6 Gas station/Convenience store10,741 2.9 11,237 3.6 Mobile Home Parks8,921 2.4 4,759 1.5 Government guaranteed2,356 0.6 2,438 0.8 Total$371,516 100.0 %$315,280 100.0 %

(1)Other commercial real estate loans include schools, churches, storage facilities, restaurants, etc.

Construction and Land Lending. We originate construction loans secured by single-family residences and commercial and multifamily real estate. We also originate land acquisition and development loans, which are secured by raw land or developed lots on which the borrower intends to build a residence, or a commercial or multifamily property. At December 31, 2024, our construction and land loans totaled $73.1 million, or 8.1% of our total loan portfolio, compared to $126.8 million, or 14.1% of our total loan portfolio at December 31, 2023. At December 31, 2024, unfunded construction loan commitments totaled $25.8 million.

Construction loans to individuals and contractors for the construction of personal residences, including speculative residential construction, totaled $19.7 million, or 26.9%, of our construction and land portfolio at December 31, 2024. In addition to custom home construction loans to individuals, we originate loans that are termed “speculative,” which are those loans where the builder does not have, at the time of loan origination, a signed contract with a buyer for the home or lot but has a commitment for permanent financing with either us or another lender. At December 31, 2024, construction loans to contractors for homes that were considered speculative totaled $13.6 million, or 18.7%, of our construction and land loan portfolio. The composition of, and location of underlying collateral securing, our construction and land loan portfolio, excluding loan commitments, at December 31, 2024 and 2023 was as follows (in thousands):

December 31,20242023Commercial and multifamily construction$37,003 $78,366 Speculative residential construction13,639 17,625 Land acquisition and development and