Sound Financial Bancorp(SFBC) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2024 was $795 thousand, or $0.31 diluted earnings per share, compared to $770 thousand, or $0.30 diluted earnings per share in Q1 2024, and $2.9 million, or $1.11 diluted earnings per share in Q2 2023[2]. - Noninterest income increased by $66 thousand or 6.0% to $1.2 million for the quarter ended June 30, 2024, from $1.1 million for the quarter ended March 31, 2024, but decreased by $729 thousand or 38.6% from $1.9 million for the quarter ended June 30, 2023[26]. - The annualized return on average assets was 0.30% for the quarter, slightly up from 0.29% in the previous quarter[57]. Interest Income and Expenses - Net interest income decreased by $12 thousand, or 0.2%, to $7.4 million in Q2 2024, down from $7.5 million in Q1 2024 and down $1.3 million, or 14.8%, from $8.7 million in Q2 2023[4]. - Interest income on loans increased by $87 thousand, or 0.7%, to $12.3 million in Q2 2024, compared to $12.2 million in Q1 2024, and increased by $769 thousand, or 6.7%, from $11.6 million in Q2 2023[5]. - Interest expense increased by $291 thousand, or 4.6%, to $6.6 million in Q2 2024, compared to $6.3 million in Q1 2024, and increased by $2.9 million, or 79.7%, from $3.7 million in Q2 2023[6]. - The net interest margin (NIM) was 2.92% for the quarter ended June 30, 2024, down from 2.95% for the quarter ended March 31, 2024, and 3.71% for the quarter ended June 30, 2023[29]. Assets and Liabilities - Total assets decreased by $11.8 million or 1.1% to $1.07 billion at June 30, 2024, compared to $1.09 billion at March 31, 2024, and increased by $64.1 million or 6.3% from $1.01 billion at June 30, 2023[26]. - Cash and cash equivalents decreased by $2.9 million, or 2.1%, to $135.1 million at June 30, 2024, compared to $138.0 million at March 31, 2024, but increased by $34.9 million, or 34.9%, from $100.2 million at June 30, 2023[10]. - Loans held-for-portfolio were $889.3 million at June 30, 2024, down from $897.9 million at March 31, 2024, but up from $855.4 million at June 30, 2023[11]. - Total deposits decreased by $10.1 million, or 1.1%, to $906.8 million at June 30, 2024, from $916.9 million at March 31, 2024, but increased by $84.5 million, or 10.3%, from $822.3 million at June 30, 2023[14]. Equity and Capital - Stockholders' equity totaled $101.3 million at June 30, 2024, an increase of $355 thousand, or 0.4%, from $101.0 million at March 31, 2024, and an increase of $1.4 million, or 1.4%, from $99.9 million at June 30, 2023[15]. - The Bank maintained capital levels in excess of regulatory requirements and was categorized as "well-capitalized" at June 30, 2024[26]. Nonperforming Assets - Nonperforming assets to total assets were 0.84% at June 30, 2024, compared to 0.90% at March 31, 2024, and 0.21% at June 30, 2023[12]. - Total nonperforming loans decreased by $144 thousand or 1.6% to $8.9 million at June 30, 2024, from $9.1 million at March 31, 2024, but increased by $7.4 million or 489.6% from $1.5 million at June 30, 2023[26]. - Nonperforming assets decreased by $719 thousand, or 7.4%, to $9.0 million at June 30, 2024, from $9.7 million at March 31, 2024, but increased by $6.9 million, or 332.6%, from $2.1 million at June 30, 2023[35]. Loan and Deposit Ratios - The loans-to-deposits ratio was 98% at both June 30, 2024, and March 31, 2024, compared to 104% at June 30, 2023[26]. - Total loans to total deposits ratio was 98.27% as of June 30, 2024, compared to 98.11% in the previous quarter[64].