Company: SFBC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001541119-25-000041
Chunk: 133

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 133
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ars in thousands):

 Nine Months Ended September 30,AmountChangePercentChange 20252024Service charges and fee income$2,020 $2,001 $19 0.9 %Earnings on BOLI648 498 150 30.1 Mortgage servicing income794 841 (47)(5.6)Fair value adjustment on mortgage servicing rights(551)(81)(470)580.2 Net gain on sale of loans187 205 (18)(8.8)Other income$— $30 $(30)(100.0)%Total noninterest income$3,098 $3,494 $(396)(11.3)%

The decrease in noninterest income was primarily due to:

•a $470 thousand decrease in fair value adjustment on mortgage servicing rights, for the same reasons noted above in the quarterly comparison; 

•a $47 thousand decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than originations replaced repayments; 

•a $30 thousand decrease in other income due to a prior year gain on disposal of assets due to insurance claims on the loss of fully depreciated assets and no comparable gain in the current period; and

•a $18 thousand decrease in net gain on sale of loans due to fewer loans sold. 

These decreases were partially offset by;

•a $150 thousand increase in earnings on BOLI, primarily due to the strategic surrender and exchange of existing policies into higher-yielding policies in 2025, as well as changes due to market fluctuations; and

•a $19 thousand increase in service charges and fee income, reflecting higher fees from new client acquisitions in specialty banking deposit accounts, increased interchange income, and a Mastercard volume incentive received in the first quarter of 202, partially offset by a second-quarter 2024 recovery of potential lost fee income related to a vendor error. 

Noninterest Expense.  Total noninterest expense remained relatively unchanged during the three months ended September 30, 2025, compared the three months ended September 30, 2024, as reflected below (dollars in thousands):

 Three Months Ended September 30,AmountChangePercentChange 20252024Salaries and benefits$4,259 $4,469 $(210)(4.7)%Operations1,483 1,540 (57)(3.7)%Regulatory assessments221 189 32 16.9 %Occupancy