Financial Performance - Total interest income for the three months ended September 30, 2024, was $14,838,000, an increase of 17% compared to $12,686,000 for the same period in 2023[9]. - Net income for the three months ended September 30, 2024, was $1,154,000, slightly down from $1,169,000 in the same period of 2023[11]. - Noninterest income for the nine months ended September 30, 2024, totaled $3,494,000, compared to $3,940,000 for the same period in 2023, reflecting a decrease of 11.4%[9]. - Basic earnings per share for the three months ended September 30, 2024, remained at $0.45, consistent with the same period in 2023[9]. - Net income for Q3 2024 decreased by $15 thousand, or 1.3%, to $1.2 million, primarily due to a $295 thousand decrease in net interest income[137]. - Year-to-date (YTD) net income for 2024 decreased by $3.5 million, or 56.3%, to $2.7 million, attributed to a $3.5 million decrease in net interest income and a $446 thousand decrease in noninterest income[137]. Income and Expenses - Total noninterest expense for the three months ended September 30, 2024, was $7,679,000, a decrease of 0.4% from $7,710,000 in the same period of 2023[9]. - The provision for income taxes for the three months ended September 30, 2024, was $267,000, compared to $295,000 for the same period in 2023[9]. - Salaries and benefits increased by $321 thousand, or 7.7%, to $4.5 million for the three months ended September 30, 2024, compared to $4.1 million for the same period in 2023[148]. - Total noninterest income decreased by $446 thousand, or 11.3%, to $3.5 million for the nine months ended September 30, 2024, compared to $3.9 million for the same period in 2023[146]. Assets and Equity - Total stockholders' equity increased to $102,239,000 as of September 30, 2024, up from $100,654,000 at December 31, 2023[13]. - Cash and cash equivalents at the end of the period were $148,930,000, up from $101,890,000 at the end of the same period in 2022, an increase of approximately 46.1%[16]. - Total assets increased by $105.7 million, or 10.6%, to $1.10 billion at September 30, 2024, from $995.2 million at December 31, 2023[113]. - The company’s stockholders' equity was $102.2 million at September 30, 2024[110]. Loans and Credit Quality - Total loans held-for-portfolio increased to $903,485 thousand as of September 30, 2024, compared to $896,160 thousand at December 31, 2023, reflecting a growth of 0.37%[34]. - The allowance for credit losses on loans was $8,585 thousand at the end of the period, down from $8,760 thousand, indicating a reduction of approximately 1.99%[36]. - The provision for credit losses during the three months ended September 30, 2024, was $106 thousand, compared to a release of $98 thousand in the same period of 2023[36]. - As of September 30, 2024, there were no loans classified as doubtful or loss, indicating strong credit quality management[46]. - The company reported three collateral dependent mortgage loans in process of foreclosure, totaling $355 thousand, all related to deceased borrowers[35]. Deposits and Borrowings - The company reported a net increase in deposits of $103,658,000 for the nine months ended September 30, 2023, compared to $52,112,000 in the same period of 2022, reflecting a substantial growth in deposits[16]. - The company had $20.0 million available under an unsecured Fed Funds line of credit as of September 30, 2024, with no balance drawn on this line[82]. - The company had the ability to borrow $168.1 million in FHLB advances and $21.9 million through the Federal Reserve's discount window as of September 30, 2024[152]. Securities and Investments - The company reported unrealized losses of $307,000 on available-for-sale securities for the nine months ended September 30, 2024[11]. - The amortized cost of available-for-sale (AFS) securities was $9.2 million, with an estimated fair value of $8.032 million, reflecting gross unrealized losses of $1.193 million[24]. - The company did not own any debt securities classified as trading or any equity investment securities as of September 30, 2024[24]. - The estimated fair value of available-for-sale securities is $8,032,000 as of September 30, 2024[66]. Regulatory and Compliance - The company is evaluating the impact of the adoption of ASU 2023-07 on the footnotes to its consolidated financial statements, effective for fiscal years beginning after December 15, 2023[22]. - The company does not expect the adoption of ASU 2023-09 to have a material impact on the footnotes to its consolidated financial statements, effective for fiscal years beginning after December 15, 2024[23]. - The classification of assets and valuation allowances is subject to review by federal and state regulators, ensuring compliance with regulations[46]. Dividends - Cash dividends paid on common stock for the three months ended September 30, 2024, were $0.19 per share, totaling $487,000[13]. - Cash dividends paid were $0.57 per common share for the nine months ended September 30, 2024, compared to $0.55 per share for the same period in 2023, resulting in a dividend payout ratio of 53.66% versus 22.88%[151].
Sound Financial Bancorp(SFBC) - 2024 Q3 - Quarterly Report