Company: SFBC
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001541119-25-000009
Chunk: 109

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-03-18
Form: 10-K
Item: Item 7
Chunk 109
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 from $603 thousand at December 31, 2023 primarily due to timing of originations.

The following table reflects the changes in the loan mix, excluding premiums and deferred fees, of our portfolio at December 31, 2024, as compared to December 31, 2023 (dollars in thousands):

December 31,AmountPercent20242023ChangeChangeOne-to-four family$269,684 $279,448 $(9,764)(3.5)%Home equity26,686 23,073 3,613 15.7 Commercial and multifamily371,516 315,280 56,236 17.8 Construction and land73,077 126,758 (53,681)(42.3)Manufactured homes41,128 36,193 4,935 13.6 Floating homes86,411 75,108 11,303 15.0 Other consumer17,720 19,612 (1,892)(9.6)Commercial business15,605 20,688 (5,083)(24.6)Total loans$901,827 $896,160 $5,667 0.6 

Commercial and multifamily loans saw the largest increase, rising by $56.2 million, or 17.8%, primarily due to the conversion of completed construction loans to permanent financing. Floating home loans increased by $11.3 million, or 15.0%, while home equity loans grew by $3.6 million, or 15.7%, as homeowners utilized the equity in their homes. Manufactured home loans rose by $4.9 million, or 13.6%, reflecting affordability in the current market, internal efficiencies in loan processing, and successful 

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marketing efforts. These increases were partially offset by declines in other loan categories. Construction and land loans experienced the largest decrease, declining by $53.7 million, or 42.3%, as completed construction loans paid off or converted to permanent financing, while new construction loans have not yet fully advanced. Commercial business loans decreased by $5.1 million, or 24.6%, due to lower outstanding balances on lines of credit and paydowns exceeding new originations. One-to-four family loans declined by $9.8 million, or 3.5%, as a result of elevated mortgage interest rates and a lower supply of housing. Additionally, other consumer loans decreased by $1.