Company: SFBC
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001541119-25-000009
Chunk: 32

Company: Sound Financial Bancorp, Inc.
Filing Date: 2025-03-18
Form: 10-K
Item: Item 1
Chunk 32
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— (25)Average loans outstanding25,094 20,560 Commercial and multifamily real estate:— %— %Net (charge-offs)/recoveries— — Average loans outstanding338,123 305,726 Construction and land:— %— %Net (charge-offs)/recoveries— — Average loans outstanding101,191 122,344 Manufactured homes:(0.06)%— %Net (charge-offs)/recoveries(23)— Average loans outstanding38,932 31,345 Floating homes:— %— %Net (charge-offs)/recoveries— — Average loans outstanding83,176 73,322 Other consumer:(0.42)%(0.77)%Net (charge-offs)(77)(138)Average loans outstanding18,436 17,984 Commercial business:— %— %Net (charge-offs)/recoveries— — Average loans outstanding18,463 23,454 Total loans:(0.01)%(0.02)%Net (charge-offs)(100)(163)Average loans outstanding897,839 870,511 

Economic conditions in our local markets and the broader U.S. continue to be adversely impacted by inflation, elevated interest rates, and a limited housing supply. However, the impact of these factors has been partially offset by persistently low unemployment rates. Recent housing price trends in our market areas reflect the effects of higher interest rates, yet demand for 

21

loans has remained strong despite these challenges. In response to these economic conditions, we continuously monitor our loan portfolio for potential deterioration resulting from inflation and other macroeconomic factors. 

The ACL as a percentage of nonperforming loans was 113.46% and 246.34% at December 31, 2024 and 2023, respectively. We recorded a release of provision for credit losses on loans of $161 thousand for the year ended December 31, 2024, compared to a provision for credit losses on loans of $564 thousand for the year ended December 31, 2023. Net charge-offs were $100 thousand for the year ended December 31, 2024, compared to $163 thousand for the year ended December 31, 2023. 

The distribution of our allowance for credit losses on loans at the dates indicated is summarized as follows (dollars in thousands):

December 31,20242023AmountPercent of Loans