Sound Financial Bancorp(US:SFBC)2024-04-29 22:22Financial 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].