Financial Position - Total assets increased by $91.5 million, or 9.2%, to $1.09 billion at March 31, 2024, from $995.2 million at December 31, 2023[115] - Cash and cash equivalents rose by $88.3 million, or 177.7%, to $138.0 million at March 31, 2024, compared to $49.7 million at December 31, 2023[116] - Total deposits increased by $90.3 million, or 10.9%, to $916.9 million at March 31, 2024, compared to $826.5 million at December 31, 2023[129] - Total stockholders' equity increased by $338 thousand, or 0.3%, to $101.0 million at March 31, 2024, from $100.7 million at December 31, 2023[134] - Stockholders' equity totaled $101.0 million at March 31, 2024, up from $100.7 million at December 31, 2023, driven by net income of $770 thousand and $26 thousand from stock option exercises[159] Loan Portfolio - Loans held-for-portfolio, net, increased by $3.6 million, or 0.4%, to $889.3 million at March 31, 2024, from $885.7 million at December 31, 2023[118] - Commercial and multifamily real estate loans accounted for 36.1% of total loans at March 31, 2024[120] - Home equity loans increased by $1.3 million, or 5.7%, to $24.4 million at March 31, 2024[118] - Floating home loans increased by $9.1 million, or 12.2%, to $84.2 million at March 31, 2024[118] - Construction and land loans decreased by $15.0 million, or 11.9%, to $111.7 million at March 31, 2024[118] - Total loans held-for-sale decreased to $351 thousand at March 31, 2024, from $603 thousand at December 31, 2023[121] - Total loan commitments increased to $74.779 million as of March 31, 2024, compared to $72.654 million at December 31, 2023[172] Credit Quality - The allowance for credit losses on loans decreased by $162 thousand, or 1.8%, to $8.6 million at March 31, 2024[118] - The allowance for credit losses as a percentage of total loans outstanding was 0.99% at March 31, 2024, compared to 1.00% at December 31, 2023[124] - Nonperforming assets increased by $5.6 million, or 135.9%, to $9.7 million at March 31, 2024, from $4.1 million at December 31, 2023[126] - The ratio of nonaccrual loans to total loans was 1.01% at March 31, 2024, compared to 0.40% at December 31, 2023[127] - The total nonaccrual loans increased to $9.1 million at March 31, 2024, from $3.6 million at December 31, 2023, reflecting a significant rise in credit risk[127] Income Statement - Net income for Q1 2024 decreased by $1.4 million, or 64.5%, to $770 thousand, compared to $2.2 million in Q1 2023[141] - Interest income increased by $1.6 million, or 13.0%, to $13.8 million in Q1 2024, driven by higher average balances of loans and interest-bearing cash[142] - Interest income on loans rose by $852 thousand, or 7.5%, to $12.2 million in Q1 2024, with an average yield of 5.49%[143] - Interest expense surged by $3.5 million, or 124.8%, to $6.3 million in Q1 2024, primarily due to increased average balances in savings and money market accounts[147] - Net interest income fell by $1.9 million, or 20.4%, to $7.5 million in Q1 2024, with a net interest margin of 2.95%[149] - Noninterest income increased by $127 thousand, or 13.1%, to $1.1 million for the three months ended March 31, 2024, compared to $1.0 million for the same period in 2023[154] - Noninterest expense rose by $41 thousand, or 0.5%, to $7.7 million during the three months ended March 31, 2024, compared to $7.6 million for the same period in 2023[155] - The efficiency ratio for the quarter ended March 31, 2024, was 89.48%, compared to 73.65% for the same quarter in 2023, indicating a deterioration primarily due to lower net interest income[156] Regulatory and Capital - The Community Bank Leverage Ratio (CBLR) for the Bank was 10.55% as of March 31, 2024, exceeding the minimum requirement of 9%[175] - The company has approximately $1.5 million of common stock available for repurchase under its existing stock repurchase program as of March 31, 2024[162] - The Company has provided additional information related to regulatory capital in its 2023 Form 10-K[177] - There have been no material changes in the Company's market risk since the 2023 Form 10-K[178] Dividends and Tax - A quarterly dividend of $0.19 per common share was paid during the three months ended March 31, 2024, compared to $0.17 per share in the same period in 2023, resulting in a dividend payout ratio of 63.12%[160] - The provision for income taxes was $163 thousand for the three months ended March 31, 2024, with an effective tax rate of 17.47%, down from 20.15% in the same period in 2023[157] Interest Rates - The average cost of total deposits increased to 2.57% in Q1 2024, up from 1.05% in Q1 2023, reflecting higher rates on interest-bearing liabilities[147] - The weighted average cost of total deposits increased to 2.54% at March 31, 2024, from 1.64% at December 31, 2023[130] - The Federal Reserve increased the target range for the federal funds rate by 100 basis points to 5.25% to 5.50% as of March 31, 2024[150]

Financial Performance - Net income for Q1 2024 was $770 thousand, or $0.30 diluted earnings per share, down from $1.2 million, or $0.47 diluted earnings per share in Q4 2023, and $2.2 million, or $0.83 diluted earnings per share in Q1 2023[1]. - Basic earnings per share for Q1 2024 was $0.30, down from $0.47 in Q4 2023, indicating a decrease of 36.2%[36]. - Annualized return on average assets decreased to 0.29% for Q1 2024, down from 0.46% in Q4 2023[34]. - The annualized efficiency ratio for Q1 2024 was 89.48%, higher than 84.63% in Q4 2023, indicating increased operational costs relative to revenue[34]. Assets and Liabilities - Total assets increased by $91.5 million, or 9.2%, to $1.09 billion at March 31, 2024, compared to $995.2 million at December 31, 2023[5]. - Total liabilities increased to $985,693,000 as of March 31, 2024, compared to $894,567,000 at December 31, 2023, marking an increase of 10.2%[33]. - Total assets at March 31, 2024, totaled $1.09 billion, up from $995.2 million at December 31, 2023, and up from $1.00 billion at March 31, 2023[15]. Deposits - Total deposits increased by $90.3 million, or 10.9%, to $916.9 million at March 31, 2024, compared to $826.5 million at December 31, 2023[5]. - Noninterest-bearing deposits represented 14.0% of total deposits at March 31, 2024, down from 20.6% a year ago[24]. - Total deposits reached $916,883,000, an increase of 10.9% from $826,539,000 at December 31, 2023[33]. Loans and Credit Quality - Nonperforming loans increased by $5.5 million, or 154.6%, to $9.1 million at March 31, 2024, from $3.6 million at December 31, 2023[5]. - Nonperforming loans increased to $9,053 thousand, with a nonperforming loans to total loans ratio of 1.01% as of March 31, 2024[44]. - The allowance for credit losses on loans was $8,598 thousand, representing 0.96% of total loans[44]. - The allowance for credit losses on loans to total loans outstanding was 0.96% at March 31, 2024, compared to 0.98% at December 31, 2023[20]. Interest Income and Expenses - Net interest income decreased by $107 thousand, or 1.4%, to $7.5 million for Q1 2024, down from $7.6 million in Q4 2023 and $9.4 million in Q1 2023[6]. - Interest income on loans increased by $200 thousand, or 1.7%, to $12.2 million for Q1 2024, compared to $12.0 million in Q4 2023[8]. - Interest expense increased by $530 thousand, or 9.2%, to $6.3 million for Q1 2024, up from $5.8 million in Q4 2023[10]. - The average cost of deposits was 2.57% for Q1 2024, up from 2.38% in Q4 2023 and 1.05% in Q1 2023[10]. Noninterest Income and Expenses - Noninterest income increased by $30 thousand, or 2.8%, to $1.1 million for Q1 2024, compared to $1.1 million in Q4 2023[13]. - Noninterest expense increased by $350 thousand, or 4.8%, to $7.7 million for the quarter ended March 31, 2024, compared to $7.3 million for the quarter ended December 31, 2023[14]. - Noninterest income totaled $1.10 million for the quarter ended March 31, 2024, compared to $1.07 million in the previous quarter[32]. Strategic Decisions and Future Outlook - The increase in cash and cash equivalents was primarily due to the strategic decision to sell reciprocal deposits at the end of 2023, which returned to the balance sheet in the first quarter of 2024[16]. - The company anticipates potential impacts from economic conditions, interest rate changes, and regulatory environments on future performance[29].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ COMMISSION FILE NUMBER 001-35633 Sound Financial Bancorp, Inc. (Exact name of registrant as specified in its charter) | Maryland | | 45-5188530 | | --- | - ...

Financial Position - Total assets increased by $53.8 million, or 5.5%, to $1.03 billion at September 30, 2023, from $976.4 million at December 31, 2022[131] - Cash and cash equivalents rose by $44.1 million, or 76.2%, to $101.9 million at September 30, 2023, compared to $57.8 million at December 31, 2022[132] - Stockholders' equity stood at $100.2 million as of September 30, 2023[127] - Total stockholders' equity increased by $2.5 million, or 2.6%, to $100.2 million at September 30, 2023, from $97.7 million at December 31, 2022[147] - The Community Bank Leverage Ratio (CBLR) for the Bank was 11.23% as of September 30, 2023, exceeding the minimum requirement of 9%[195] Loan Portfolio - Loans held-for-portfolio increased by $8.6 million, or 1.0%, to $867.0 million at September 30, 2023, from $858.4 million at December 31, 2022[133] - One-to-four family loans increased by $5.9 million, or 2.2%, to $280.6 million at September 30, 2023[133] - Home equity loans rose by $1.8 million, or 9.0%, to $21.3 million at September 30, 2023[133] - Commercial and multifamily loans decreased by $9.1 million, or 2.9%, to $304.3 million at September 30, 2023[133] - Manufactured home loans increased by $7.7 million, or 28.6%, to $34.7 million at September 30, 2023[133] - The company’s loan portfolio remained well-diversified, with commercial and multifamily real estate loans accounting for 34.7% of total loans[134] - Total loan commitments decreased to $66.871 million as of September 30, 2023, from $101.324 million at December 31, 2022[192] Credit Quality - The allowance for credit losses on loans increased by $839 thousand, or 11.0%, to $8.4 million at September 30, 2023, from $7.6 million at December 31, 2022[136] - The ratio of allowance for credit losses on loans as a percentage of total loans outstanding increased to 0.96% at September 30, 2023, from 0.88% at December 31, 2022[137] - Nonperforming assets decreased by $1.3 million, or 35.4%, to $2.3 million at September 30, 2023, from $3.6 million at December 31, 2022[139] - The total nonaccrual loans decreased to $1.762 million at September 30, 2023, from $2.959 million at December 31, 2022, representing a 40.4% decline[140] - Net charge-offs for the nine months ended September 30, 2023 totaled $148 thousand, compared to net recoveries of $82 thousand for the same period in 2022[171] - The provision for credit losses on loans was $224 thousand for the three months ended September 30, 2023, compared to $375 thousand for the same period in 2022[171] Deposits - Total deposits rose by $52.1 million, or 6.4%, to $860.9 million at September 30, 2023, compared to $808.8 million at December 31, 2022[143] - Noninterest-bearing deposits decreased by $19.3 million, or 11.1%, to $153.9 million at September 30, 2023, compared to $173.2 million at December 31, 2022[143] - The aggregate amount of time deposits in denominations of more than $250,000 increased to $87.4 million at September 30, 2023, from $56.1 million at December 31, 2022[145] Income Statement - Net income for Q3 2023 decreased by $1.4 million, or 54.1%, to $1.2 million, compared to $2.5 million in Q3 2022[154] - For the nine months ended September 30, 2023, net income increased by $347 thousand, or 5.9%, to $6.2 million[155] - Interest income increased by $1.9 million, or 17.7%, to $12.7 million for Q3 2023, driven by a 38 basis point increase in average loan yield[156] - Interest income for the nine months ended September 30, 2023, rose by $9.3 million, or 33.2%, to $37.3 million, primarily due to higher average loan balances[160] - Net interest income increased by $676 thousand, or 2.6%, to $26.3 million for the nine months ended September 30, 2023, compared to $25.6 million for the same period in 2022[169] - Noninterest income increased by $55 thousand in Q3 2023, partially offsetting the decrease in net interest income[154] - Noninterest income increased by $376 thousand, or 10.5%, to $3.9 million for the nine months ended September 30, 2023, compared to $3.6 million for the same period in 2022[174] Expenses - Noninterest expense increased by $645 thousand, or 9.1%, to $7.7 million during the three months ended September 30, 2023, compared to $7.1 million during the same period in 2022[175] - Noninterest expense increased by $2.1 million, or 10.4%, to $22.8 million for the nine months ended September 30, 2023, compared to $20.7 million for the same period in 2022[177] - Salaries and benefits rose by $1.152 million, or 9.5%, to $13.333 million during the nine months ended September 30, 2023, driven by higher wages and hiring for strategic initiatives[177] Tax and Dividends - Income tax expense for Q3 2023 was $295 thousand, with an effective tax rate of 20.15%, compared to $666 thousand and 20.73% in Q3 2022[178] - The company paid regular quarterly dividends of $0.55 per common share during the nine months ended September 30, 2023, with a dividend payout ratio of 22.88%[181] Investments - As of September 30, 2023, the company had $112.0 million in cash and cash equivalents and available-for-sale investment securities[187] - The average yield on investments and cash equivalents increased to 4.86% in Q3 2023, compared to 2.01% in Q3 2022[158] - Interest income on investments and cash and cash equivalents increased by $2.0 million, or 223.7%, to $2.8 million for the nine months ended September 30, 2023, compared to $876 thousand for the same period in 2022[162] - The average yield on investments and cash and cash equivalents increased by 365 basis points to 4.51% for the nine months ended September 30, 2023, compared to 0.86% for the same period in 2022[162] Interest Expense - Interest expense increased by $8.6 million, or 364.1%, to $11.0 million for the nine months ended September 30, 2023, from $2.4 million for the same period in 2022[165] - Interest expense on deposits increased by $7.4 million, or 470.7%, to $9.0 million for the nine months ended September 30, 2023, compared to $1.6 million for the same period in 2022[165] - The average cost of total deposits increased by 119 basis points to 1.45% for the nine months ended September 30, 2023, from 0.26% for the same period in 2022[165] Efficiency - The efficiency ratio for Q3 2023 was 83.36%, up from 66.51% in Q3 2022, primarily due to lower net interest income and increased noninterest expense[176]

FORM 10-Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) | Maryland | 45-5188530 | | --- | --- | | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | | 2400 3rd Avenue, Suite 150, Seattle, Washington | 98121 | | (Address of principal executive offices) | (Zip Code) | | Registra ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35633 Sound Financial Bancorp, Inc. (Exact name of registrant as specified in its charter) | Maryland | 45-5188530 | | --- | -- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ COMMISSION FILE NUMBER 001-35633 Sound Financial Bancorp, Inc. (Exact name of registrant as specified in its charter) | Maryland | | 45-5188530 | | --- | - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER 001-35633 Sound Financial Bancorp, Inc. (Exact Name of Registrant as Specified in its Charter) | Maryland | 45-5188530 | | --- | --- | | (S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER 001-35633 Sound Financial Bancorp, Inc. (Exact Name of Registrant as Specified in its Charter) | Maryland | 45-5188530 | | --- | --- | | (State ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER 001-35633 Sound Financial Bancorp, Inc. (Exact Name of Registrant as Specified in its Charter) | Maryland | 45-5188530 | | --- | --- | | (State ...