Financial Performance - Net income for Q3 2024 was $1.2 million, or $0.45 diluted earnings per share, a 45% increase from the prior quarter's net income of $795 thousand[1][2]. - Net income for the quarter ended September 30, 2024, was $1,154 thousand, compared to $795 thousand in the previous quarter[30]. - Net income for the nine months ended September 30, 2024, was $2,719 thousand, compared to $6,228 thousand for the same period in 2023, a decline of 56.4%[32]. - Basic earnings per share for the quarter ended September 30, 2024, was $0.45, up from $0.31 in the previous quarter[37]. Asset Growth - Total assets increased by $26.1 million, or 2.4%, to $1.10 billion compared to $1.07 billion at the end of Q2 2024, and increased by $70.8 million, or 6.9%, from $1.03 billion at the end of Q3 2023[3]. - Total assets as of September 30, 2024, reached $1,100,930 thousand, an increase from $1,030,176 thousand as of September 30, 2023, reflecting a growth of 6.8%[34]. - Average total assets for the quarter increased to $1,095,404 thousand from $1,070,579 thousand in the previous quarter, marking a growth of 2.4%[48]. Loan and Deposit Activity - Loans held-for-portfolio rose by $12.5 million, or 1.4%, to $901.7 million compared to $889.3 million at the end of Q2 2024, and increased by $26.3 million, or 3.0%, from $875.4 million at the end of Q3 2023[3]. - Total deposits increased by $23.4 million, or 2.6%, to $930.2 million compared to $906.8 million at the end of Q2 2024, and increased by $69.3 million, or 8.1%, from $860.9 million at the end of Q3 2023[3]. - Total deposits increased to $930,197 thousand as of September 30, 2024, from $860,875 thousand a year earlier, marking an increase of 8.0%[34]. - The loans-to-deposits ratio was 97% at the end of Q3 2024, compared to 98% at the end of Q2 2024 and 102% at the end of Q3 2023[3]. Interest Income and Expense - Net interest income increased by $425 thousand, or 5.7%, to $7.9 million for Q3 2024 compared to $7.4 million for Q2 2024, but decreased by $295 thousand, or 3.6%, from $8.2 million for Q3 2023[4]. - Interest income for the quarter ended September 30, 2024, was $14,838 thousand, up from $14,039 thousand in the previous quarter[30]. - Interest expense increased by $374 thousand, or 5.7%, to $7.0 million for Q3 2024, and increased by $2.4 million, or 54.2%, from $4.5 million for Q3 2023[8]. - The average cost of deposits was 2.74% for Q3 2024, up from 2.67% for Q2 2024 and 1.85% for Q3 2023[8]. Credit Quality - Non-performing loans decreased by $420 thousand, or 4.7%, to $8.5 million at the end of Q3 2024, but increased by $6.7 million, or 381.8%, from $1.8 million at the end of Q3 2023[3]. - The provision for credit losses for Q3 2024 was $8 thousand, compared to a release of $109 thousand in Q2 2024 and a provision of $75 thousand in Q3 2023, reflecting growth in the loan portfolio and higher loss rates due to economic conditions[10]. - Nonperforming loans to total loans ratio improved to 0.94% from 1.00% in the previous quarter, indicating a positive trend in credit quality[47]. - The allowance for credit losses on loans to total loans outstanding was 0.95% at September 30, 2024, compared to 0.96% at both June 30, 2024, and September 30, 2023[18]. Noninterest Income and Expense - Noninterest income increased by $73 thousand, or 6.3%, to $1.2 million in Q3 2024 compared to Q2 2024, and increased by $154 thousand, or 14.2%, compared to Q3 2023, driven by fair value adjustments in mortgage servicing rights[11]. - Noninterest expense decreased by $58 thousand, or 0.7%, to $7.7 million in Q3 2024 compared to Q2 2024, primarily due to a $189 thousand decrease in salaries and benefits[12]. - Total noninterest income for the nine months ended September 30, 2024, was $3,494 thousand, down from $3,940 thousand, a decrease of 11.4%[32]. - Total noninterest expense was $7,679 thousand for the quarter ended September 30, 2024, slightly down from $7,737 thousand in the previous quarter[30]. Capital and Equity - The Bank maintained capital levels in excess of regulatory requirements and was categorized as "well-capitalized" at the end of Q3 2024[3]. - Stockholders' equity rose to $102.2 million at September 30, 2024, an increase of $892 thousand, or 0.9%, from $101.3 million at June 30, 2024[24].
Sound Financial Bancorp(SFBC) - 2024 Q3 - Quarterly Results