Company: SFBC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001541119-25-000034
Chunk: 113

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 8
Chunk 113
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, accounted for 16.8% of total loans. Construction and land loans accounted for 5.5% of total loans at June 30, 2025. 

Loans held-for-sale totaled $2.03 million at June 30, 2025, compared to $487 thousand at December 31, 2024. The increase was primarily due to timing of mortgage originations and sales. 

Allowance for Credit Losses.  

The following table reflects the activity in our allowance for credit losses (“ACL”) during the periods indicated (dollars in thousands):

 Three Months Ended June 30,Six Months Ended June 30, 2025202420252024ACL — Loans:Balance at beginning of period$8,393 $8,598 $8,499 $8,760 Charge-offs(23)(21)(50)(83)Recoveries2 4 8 10 Net charge-offs(21)(17)(42)(73)Provision for (release of) credit losses164 (88)79 (194)Balance at end of period$8,536 $8,493 $8,536 $8,493 Reserve for Unfunded Commitments:Balance at beginning of period116 266 234 193 Provision for (release of) credit losses6 (21)(112)52 Balance at end of period122 245 122 245 ACL$8,658 $8,738 $8,658 $8,738 Ratio of net charge-offs during the period to average loans outstanding during the period(0.01)%(0.01)%(0.01)%(0.02)%

Our ACL — loans increased $37 thousand, or 0.4%, to $8.5 million at June 30, 2025, from $8.5 million at December 31, 2024. The increase in the ACL - loans was primarily a result of an increase in the balance of our loan portfolio, as well as higher reserves on our portfolio of other consumer loans and residential loans due to qualitative adjustments for uncertainty in market conditions and concentrations, partially offset by lower reserves due to qualitative adjustments for improved credit quality.  See “Comparison of Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024 — Provision for Credit Losses.” 

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The following tables show certain credit ratios at and for the