Company: SFBC
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001541119-25-000023
Chunk: 51

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 51
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amily loans28,951 29,180 Home equity loans237 241 Notional amount of letters of credit outstanding13,000 8,000 Remaining FHLB borrowing capacity(2)$167,529 $172,327 (1)Subject to eligible pledged collateral.(2)Amount remaining from the advance equivalent of collateral less letters of credit outstanding and FHLB advances.

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As a member of the FHLB, the Company is required to maintain a minimum level of investment in FHLB of Des Moines stock based on specific percentages of its outstanding FHLB advances. At both March 31, 2025 and December 31, 2024, the Company had an investment of $1.7 million in FHLB of Des Moines stock.Federal Reserve Bank of San Francisco (“FRB SF”) BorrowingsThe Company has a borrowing agreement with the FRB SF. The terms of the agreement call for a blanket pledge of a portion of the Company’s consumer and commercial business loans based on the Company’s outstanding borrowing balance. At March 31, 2025 and December 31, 2024, the amount available to borrow under this credit facility was $20.3 million and $20.8 million, respectively, subject to eligible pledged collateral. The Company had no outstanding borrowings under this arrangement at March 31, 2025 and December 31, 2024. Other BorrowingsThe Company has access to an unsecured Fed Funds line of credit from Pacific Coast Banker’s Bank (“PCBB”). The line has a one year term maturing on June 30, 2025 and is renewable annually. As of March 31, 2025, the amount available under this line of credit was $20.0 million. There was no balance on this line of credit as of March 31, 2025 and December 31, 2024.Subordinated Debt

In September 2020, the Company issued $12.0 million of fixed to floating rate subordinated notes that mature in 2030. The subordinated notes have an initial fixed interest rate of 5.25% to, but excluding, October 1, 2025, payable semi-annually in arrears. From, and including, October 1, 2025, the interest rate on the subordinated notes will reset quarterly to a floating rate per annum equal to a benchmark rate, which is expected to be the then-current