Company: SFBC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001541119-25-000041
Chunk: 26

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 2
Chunk 26
---
 to higher deferred salaries resulting from higher loan originations in the current quarter than in the same quarter one year ago; and

•a $57 thousand decrease in operations expense, primarily due to lower expenses across various accounts, resulting from ongoing cost-saving initiatives and process improvements, as well as the impact of timing of expenses, including marketing campaigns and charitable contributions.

These decreases were partially offset by:

43

•a $207 thousand increase in data processing expenses, reflecting the amortization of projects implemented at the end of the third quarter of 2024, as well as the deployment of new software technology in 2025 that continues to streamline operations and processes; 

•a $32 thousand increase in regulatory assessments, due to higher accruals in the current year based on an increase in estimated exam costs; and

•a $17 thousand increase in occupancy expense, due to higher building lease charges in 2025 resulting from lease renewals and maintenance charges.

The efficiency ratio for the quarter ended September 30, 2025 was 78.16%, compared to 84.31% for the quarter ended September 30, 2024. The improvement in the efficiency ratio was primarily due to higher net interest income resulting from lower funding costs.

Total noninterest expense increased $179 thousand, or 0.8%, to $23.3 million during the nine months ended September 30, 2025, compared to $23.1 million during the nine months ended September 30, 2024, as reflected below (dollars in thousands):

 Nine Months Ended September 30,AmountChangePercentChange 20252024Salaries and benefits$13,175 $13,670 $(495)(3.6)%Operations4,291 4,566 (275)(6.0)Regulatory assessments663 598 65 10.9 Occupancy1,284 1,255 29 2.3 Data processing3,821 2,995 826 27.6 Net loss (gain) on OREO and repossessed assets19 (10)29 (290.0)Total noninterest expense$23,253 $23,074 $179 0.8 %

The increase in noninterest expense was primarily due to: 

•an $826 thousand increase in data processing expenses, due to the reasons stated above in the quarterly comparison, as well as new software technology being deployed in 2025 that continues to streamline our operations