Company: SFBC
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001541119-25-000009
Chunk: 31

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-03-18
Form: 10-K
Item: Item 1
Chunk 31
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 credit loss and (2) establishment of an ACL for collectively evaluated loan pools based upon loans that share similar risk characteristics. 

Historical credit loss experience for both the Company and segment-specific peers provides the basis for the estimate of expected credit losses. Segments are based upon federal call report segmentation.

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While our policies and procedures used to estimate the ACL, as well as the resulting provision for credit losses reported on the Consolidated Statements of Income, are reviewed periodically by regulators, model validators and internal audit, they are necessarily approximate and imprecise. There are factors beyond our control, such as changes in projected economic conditions, real estate markets or particular industry conditions, which may materially impact asset quality and the adequacy of the ACL and thus the resulting provision for credit losses. 

At December 31, 2024, our ACL for loans was $8.5 million, or 0.94% of our total loan portfolio, compared to $8.8 million, or 0.98% of our total loan portfolio, at December 31, 2023.

See “Note 1—Organization and Significant Accounting Policies” and “Note 5—Loans” in the Notes to Consolidated Financial Statements contained in “Part II. Item 8. Financial Statements and Supplementary Data” of this report on Form 10-K. 

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The following table shows certain credit ratios at and for the periods indicated and each component of the ratio's calculations (dollars in thousands).

At and For December 31,20242023ACL - loans as a percentage of total loans outstanding0.94 %0.98 %ACL — loans8,499 8,760 Total loans outstanding901,827 896,160 Nonaccrual loans as a percentage of total loans outstanding0.83 %0.40 %Total nonaccrual loans7,491 3,556 Total loans outstanding901,827 896,160 ACL - loans as a percentage of nonaccrual loans113.46 %246.34 %ACL — loans8,499 8,760 Total nonaccrual loans7,491 3,556 Net recoveries (charge-offs) during period to average loans outstanding:One-to-four family:— %— %Net (charge-offs)/recoveries— — Average loans outstanding274,424 275,776 Home equity:— %(0.12)%Net (charge-offs)/recoveries