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Sound Financial Bancorp Inc. (SFBC-0.68%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing outlines the company's financial position, with total assets reported at $993.6 million, a slight decrease from $995.2 million at the end of 2023. The decrease was primarily due to lower balances of cash and cash equivalents and investment securities, offset by an increase in loans held-for-portfolio.
Loans held-for-portfolio increased by $5.7 million to $901.8 million. The largest increase was in commercial and multifamily loans, which rose by $56.2 million, reflecting the conversion of completed construction loans to permanent financing.
Nonperforming assets increased by $3.4 million to $7.5 million, representing 0.75% of total assets. This was primarily due to the placement of additional loans on nonaccrual status, including a $3.7 million matured commercial real estate loan.
The allowance for credit losses on loans decreased by $261 thousand to $8.5 million, with a release of provision for credit losses of $161 thousand recorded during the year.
Total deposits increased by $11.3 million to $837.8 million, driven by a $52.0 million increase in money market accounts. The increase was attributed to clients moving balances from lower interest-bearing accounts to higher interest-bearing money market accounts.
Net income for the year was $4.6 million, down from $7.4 million in the previous year. The decrease was primarily due to a $2.8 million reduction in net interest income and a $351 thousand decrease in noninterest income.
The company's net interest margin decreased from 3.53% in 2023 to 3.00% in 2024, reflecting an increase in the average balances of and rates paid on deposits and borrowings.
The filing also notes that the company's capital levels remain strong, with stockholders' equity increasing to $103.7 million. The company continues to exceed regulatory capital requirements, maintaining a well-capitalized status.
Sound Financial Bancorp continues to focus on maintaining strong asset quality, expanding product offerings, and managing funding costs, while emphasizing client service and exploring growth opportunities within its market area.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sound Financial Bancorp Inc. annual 10-K report dated March 18, 2025. To report an error, please email earnings@qz.com.