Company: SFBC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001541119-25-000041
Chunk: 117

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 117
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,041 $19,210 Total loans:(0.02)%(0.01)%(0.01)%(0.01)%Net (charge-offs)$(37)$(14)$(79)$(87)Average loans outstanding$911,177 $900,156 $901,565 $896,415 

Nonperforming Assets.  

Nonperforming assets (“NPAs”), which were comprised of nonperforming loans (nonaccrual loans and nonperforming modified loans), other real estate owned (“OREO”) and repossessed assets, decreased $4.4 million, or 59.1%, to $3.1 million, or 0.29% of total assets, at September 30, 2025 from $7.5 million, or 0.75% of total assets, at December 31, 2024. 

The table below sets forth the amounts and categories of NPAs at the dates indicated (dollars in thousands):

 Nonperforming Assets September 30,2025December 31,2024AmountChangePercentChangeTotal nonperforming loans$2,717 $7,491 $(4,774)(63.7)OREO and repossessed assets344 — 344 — Total nonperforming assets$3,061 $7,491 $(4,430)(59.1)%

The decrease in NPAs from December 31, 2024 was primarily due to payoffs of nonaccrual loans totaling $7.7 million, including one commercial real estate loan, one floating home loan and one mortgage loan, the return of $334 thousand of loans 

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to accrual status, loan charge-offs of $261 thousand, and regular loan payments totaling $269 thousand. These decreases were partially offset by the addition of 15 loans totaling $3.8 million to nonaccrual status and $344 thousand of other real estate owned that was not included in nonperforming assets at December 31, 2024. The percentage of nonperforming loans to total loans was 0.30% at September 30, 2025, compared to 0.83% at December 31, 2024.

Mortgage Servicing Rights.  The fair value of mortgage servicing rights decreased $464 thousand, or 9.7%, to $4.3 million at September 30, 2025 from