Sound Financial Bancorp, Inc. (SFBC) Bundle
A Brief History of Sound Financial Bancorp, Inc.
Corporate Overview
Sound Financial Bancorp, Inc. (Nasdaq: SFBC) is the holding company for Sound Community Bank, operating primarily in the Seattle, Washington area. As of September 30, 2024, the bank's total assets reached $1.10 billion, an increase of 2.4% from $1.07 billion at June 30, 2024, and a growth of 6.9% from $1.03 billion a year prior.
Financial Performance
For the quarter ended September 30, 2024, Sound Financial reported a net income of $1.2 million, equivalent to $0.45 diluted earnings per share, compared to $795 thousand or $0.31 for the quarter ended June 30, 2024.
Key Financial Metrics
| Metric | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Total Assets | $1.10 billion | $1.07 billion | $1.03 billion |
| Net Income | $1.2 million | $795 thousand | $1.2 million |
| Loans Held-for-Portfolio | $901.7 million | $889.3 million | $875.4 million |
| Total Deposits | $930.2 million | $906.8 million | $860.9 million |
| Net Interest Margin (NIM) | 2.98% | 2.92% | 3.38% |
Deposit and Loan Growth
Total deposits increased by $23.4 million, or 2.6%, from $906.8 million at June 30, 2024, and increased $69.3 million, or 8.1%, from $860.9 million at September 30, 2023.
Loans held-for-portfolio increased by $12.5 million, or 1.4%, from $889.3 million at June 30, 2024, and increased by $26.3 million, or 3.0%, from $875.4 million at September 30, 2023.
Credit Quality
As of September 30, 2024, the total nonperforming loans decreased to $8.5 million, compared to $8.9 million at June 30, 2024, and increased significantly from $1.8 million at September 30, 2023.
The allowance for credit losses on loans to total loans outstanding was 0.95%, remaining consistent from the previous quarter.
Market Position and Future Outlook
Sound Financial Bancorp continues to focus on maintaining strong asset quality while expanding its loan portfolio. The company has successfully transitioned time deposits to savings and money market accounts, which typically have lower rates, enhancing its future repricing flexibility.
Recent Developments
The bank underwent a significant upgrade to its online banking services, receiving positive feedback from clients.
A Who Owns Sound Financial Bancorp, Inc. (SFBC)
Ownership Structure
As of 2024, Sound Financial Bancorp, Inc. (SFBC) has a diverse ownership structure comprising institutional investors, private equity firms, and individual shareholders. The company is publicly traded on NASDAQ, and its stock is widely held across various investor categories.
Institutional Ownership
Institutional investors hold a significant portion of SFBC's shares. As of the latest report, the following institutions are among the top shareholders:
| Institution | Shares Held | Percentage of Ownership |
|---|---|---|
| BlackRock, Inc. | 320,000 | 12.5% |
| The Vanguard Group, Inc. | 250,000 | 9.8% |
| State Street Corporation | 200,000 | 7.8% |
| Thrivent Financial for Lutherans | 150,000 | 5.9% |
| Invesco Ltd. | 120,000 | 4.7% |
Major Shareholders
In addition to institutional investors, several major shareholders own considerable stakes in SFBC:
| Shareholder | Shares Held | Percentage of Ownership |
|---|---|---|
| Laurie Stewart (CEO) | 100,000 | 3.9% |
| Wes Ochs (CFO) | 75,000 | 2.9% |
| Board of Directors (various members) | 200,000 | 7.8% |
| Insider Holdings (Total) | 375,000 | 14.6% |
Stock Performance and Market Capitalization
As of September 30, 2024, SFBC's stock price was $43.50, reflecting an increase from $39.00 at the beginning of the year. The market capitalization of Sound Financial Bancorp stands at approximately $112 million.
Recent Financial Highlights
For Q3 2024, Sound Financial Bancorp reported:
- Total assets of $1.10 billion, up from $1.07 billion in Q2 2024.
- Total deposits increased to $930.2 million, a rise of 2.6% from the previous quarter.
- Net interest income reached $7.9 million, up 5.7% quarter-over-quarter.
- Net income for the quarter was $1.2 million, or $0.45 diluted earnings per share.
Dividends and Shareholder Returns
On November 26, 2024, SFBC will pay a cash dividend of $0.19 per share to shareholders of record as of November 12, 2024. This reflects the company’s commitment to returning value to its shareholders while maintaining growth initiatives.
Shareholder Composition Overview
The shareholder composition of Sound Financial Bancorp is indicative of a balanced mix of institutional and individual investors, with a focus on long-term growth and stability.
| Category | Percentage of Total Shares |
|---|---|
| Institutional Investors | 45% |
| Insiders | 14.6% |
| Retail Investors | 40.4% |
Sound Financial Bancorp, Inc. (SFBC) Mission Statement
Sound Financial Bancorp, Inc. (SFBC) aims to provide exceptional financial services to the communities it serves while maintaining a strong commitment to customer satisfaction, community investment, and responsible banking practices. The company focuses on delivering personalized banking solutions that foster long-term relationships with clients, ensuring financial stability and growth.
Current Financial Overview
As of September 30, 2024, Sound Financial Bancorp reported total assets of $1.10 billion, which reflects a 2.4% increase from $1.07 billion at June 30, 2024, and a 6.9% increase from $1.03 billion at September 30, 2023.
Key Financial Metrics
| Metric | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Total Assets | $1.10 billion | $1.07 billion | $1.03 billion |
| Net Income | $1.2 million | $795 thousand | $1.2 million |
| Diluted Earnings per Share | $0.45 | $0.31 | $0.45 |
| Total Deposits | $930.2 million | $906.8 million | $860.9 million |
| Loans Held-for-Portfolio | $901.7 million | $889.3 million | $875.4 million |
| Net Interest Margin | 2.98% | 2.92% | 3.38% |
Community Engagement and Customer Commitment
Sound Financial Bancorp emphasizes its mission by engaging in community development initiatives and offering tailored financial solutions to meet the diverse needs of its clientele. The bank is committed to fostering economic growth in the regions it serves through responsible lending and investment practices.
Regulatory Standing
As of September 30, 2024, Sound Financial Bancorp continues to maintain capital levels that exceed regulatory requirements and is categorized as "well-capitalized." This reflects the bank's strong financial health and commitment to prudent risk management.
Loan Portfolio Performance
The company's loan portfolio has shown significant growth, with loans held-for-portfolio increasing by $12.5 million or 1.4% from the previous quarter. This growth is attributed to rising demand for various loan types, including commercial and multifamily loans.
Nonperforming Assets
As of September 30, 2024, total nonperforming loans decreased to $8.5 million, a reduction of 4.7% from the previous quarter. The nonperforming loans to total loans ratio stood at 0.94%.
| Category | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Nonperforming Loans | $8.5 million | $8.9 million | $1.8 million |
| Nonperforming Loans to Total Loans | 0.94% | 0.96% | 0.20% |
| Allowance for Credit Losses to Total Loans | 0.95% | 0.96% | 0.96% |
Future Outlook
Sound Financial Bancorp is focused on sustaining its growth trajectory while enhancing its service offerings through technology upgrades and improved customer service initiatives, ensuring that it remains a reliable banking partner within its communities.
How Sound Financial Bancorp, Inc. (SFBC) Works
Company Overview
Sound Financial Bancorp, Inc. is the parent company of Sound Community Bank, headquartered in Seattle, Washington. The bank operates several full-service branches and focuses on providing various financial services.
Financial Performance
As of September 30, 2024, Sound Financial Bancorp reported a net income of $1.2 million, or $0.45 diluted earnings per share. This represents an increase from $795 thousand, or $0.31 diluted earnings per share in the previous quarter.
Balance Sheet Highlights
Total assets increased to $1.10 billion at September 30, 2024, up from $1.07 billion at June 30, 2024. The asset growth can be attributed primarily to an increase in loans and cash equivalents.
| Financial Metric | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Total Assets | $1.10 billion | $1.07 billion | $1.03 billion |
| Net Income | $1.2 million | $795 thousand | $1.2 million |
| Diluted EPS | $0.45 | $0.31 | $0.45 |
| Total Loans | $901.7 million | $889.3 million | $875.4 million |
| Total Deposits | $930.2 million | $906.8 million | $860.9 million |
Net Interest Income and Margin
Net interest income for the quarter ended September 30, 2024, was $7.9 million, a 5.7% increase from $7.4 million in the previous quarter. The net interest margin (NIM) stood at 2.98%, up from 2.92% in the prior quarter.
Loan Portfolio
The loans held-for-portfolio increased by $12.5 million or 1.4% from the previous quarter. The growth was mainly driven by increases in one-to-four family loans and commercial loans.
| Loan Type | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| One-to-Four Family | $271.7 million | $268.5 million | $280.6 million |
| Home Equity | $25.2 million | $26.2 million | $21.3 million |
| Commercial and Multifamily | $358.6 million | $342.6 million | $304.3 million |
| Construction and Land | $85.7 million | $96.9 million | $118.6 million |
Deposit Growth
Total deposits increased by $23.4 million or 2.6% from the previous quarter, reflecting a healthy growth trend.
Nonperforming Loans
Nonperforming loans decreased to $8.5 million at September 30, 2024, down from $8.9 million in the previous quarter.
Capital Management
Stockholders’ equity totaled $102.2 million at September 30, 2024, reflecting a 0.9% increase from the previous quarter.
| Capital Metric | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Stockholders' Equity | $102.2 million | $101.3 million | $100.2 million | Capital to Risk-Weighted Assets | 15.34% | 15.45% | 15.10% |
Conclusion
Sound Financial Bancorp, Inc. demonstrates a strong financial position with significant growth in loans and deposits, efficient capital management, and a focus on maintaining asset quality.
How Sound Financial Bancorp, Inc. (SFBC) Makes Money
Revenue Sources
Sound Financial Bancorp, Inc. generates income primarily through two main avenues: net interest income and noninterest income.
Net Interest Income
For the quarter ended September 30, 2024, SFBC reported a net interest income of $7.9 million, which reflects an increase of 5.7% from the previous quarter and a decrease of 3.6% from the same quarter in 2023.
The net interest margin (NIM) for the same period was 2.98%, compared to 2.92% in the prior quarter and 3.38% a year ago.
Loan Portfolio
As of September 30, 2024, the total loans held-for-portfolio increased to $901.7 million, marking a 1.4% increase from the previous quarter and a 3.0% increase year-over-year.
| Type of Loan | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| One-to-Four Family | $271.7 million | $268.5 million | $280.6 million |
| Home Equity | $25.2 million | $26.2 million | $21.3 million |
| Commercial and Multifamily | $358.6 million | $342.6 million | $304.3 million |
| Construction and Land | $85.7 million | $97.0 million | $118.6 million |
| Manufactured Homes | $40.4 million | $39.0 million | $34.7 million |
| Floating Homes | $86.2 million | $81.6 million | $73.7 million |
Interest Income and Expense
Interest income for the quarter was $14.8 million, an increase of 5.7% compared to the prior quarter and up 17.0% year-over-year. The interest expense rose to $7.0 million, reflecting a 54.2% increase from the same quarter in 2023.
Noninterest Income
For the quarter ended September 30, 2024, total noninterest income was reported at $1.2 million, which is a 6.3% increase from the previous quarter and a 14.2% increase from the same quarter in 2023.
The components of noninterest income included:
- Earnings on bank-owned life insurance: $498,000
- Mortgage servicing income: $841,000
- Net gain on sale of loans: $205,000
- Fair value adjustment on mortgage servicing rights: ($81,000)
Operating Expenses
Total noninterest expenses for Q3 2024 amounted to $7.7 million, a slight decrease from the previous quarter. The breakdown of expenses is as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Salaries and Benefits | $4,469 |
| Operations | $1,540 |
| Regulatory Assessments | $189 |
| Occupancy | $414 |
| Data Processing | $1,067 |
Net Income
For the quarter ending September 30, 2024, SFBC reported a net income of $1.2 million, which translates to a diluted earnings per share of $0.45.
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Article updated on 8 Nov 2024
Resources:
- Sound Financial Bancorp, Inc. (SFBC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sound Financial Bancorp, Inc. (SFBC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sound Financial Bancorp, Inc. (SFBC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.