Company: SFBC
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001541119-25-000009
Chunk: 170

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-03-18
Form: 10-K
Item: Item 8
Chunk 170
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 assumptions(1)(4)(219)Ending balance, at fair value$4,769 $4,632 (1) Includes changes due to collection/realization of expected cash flows and curtailments.The key economic assumptions used in determining the fair value of MSRs at December 31, 2024 and 2023 are as follows: December 31, 20242023Prepayment speed (Public Securities Association "PSA" model)125 %129 %Weighted-average life10.6 years7.7 yearsYield to maturity discount rate10.0 %12.5 %The amount of contractually specified servicing, late and ancillary fees earned on the MSRs are included in “Mortgage servicing income” on the Consolidated Statements of Income and totaled $1.1 million and $1.2 million for the years ended December 31, 2024 and 2023, respectively.See "Note 1—Organization and Significant Accounting Policies" and "Note 11— Fair Value Measurements" for additional information on MSRs.

Note 7—Premises and Equipment

Premises and equipment at December 31, 2024 and 2023 are summarized as follows (in thousands): December 31, 20242023Land$920 $920 Buildings and improvements7,351 7,315 Furniture and equipment6,365 6,390 14,636 14,625 Less: Accumulated depreciation and amortization(9,939)(9,385)Premises and equipment, net$4,697 $5,240 Depreciation and amortization expense was $619 thousand and $717 thousand for the years ended December 31, 2024 and 2023, respectively.

The Company leases office space in several buildings as well as certain equipment. See "Note 12—Leases" for additional information on our leased facilities and equipment.   

92

Note 8—Other Real Estate Owned and Repossessed Assets

The following table presents activity related to OREO and other repossessed assets for the years ended December 31, 2024 and 2023 (in thousands). Year Ended December 31, 20242023Beginning balance, January 1$575 $659 Additions to OREO and repossessed assets115 — Sales(690)— Losses— (84)Ending balance, December 31$