Sound Financial Bancorp, Inc. Q2 2025 Results

Core Viewpoint - Sound Financial Bancorp, Inc. reported a net income of $2.1 million for Q2 2025, reflecting a significant increase compared to previous quarters, alongside a cash dividend declaration of $0.19 per share [1][6]. Financial Performance - Net income for Q2 2025 was $2.1 million, or $0.79 diluted earnings per share, compared to $1.2 million, or $0.45 per share in Q1 2025, and $795 thousand, or $0.31 per share in Q2 2024 [1]. - Total assets decreased by $10.9 million, or 1.0%, to $1.06 billion at June 30, 2025, from $1.07 billion at March 31, 2025 [7]. - Loans held-for-portfolio increased by $18.1 million, or 2.0%, to $904.3 million at June 30, 2025, compared to $886.2 million at March 31, 2025 [7]. - Total deposits decreased by $10.9 million, or 1.2%, to $899.5 million at June 30, 2025, from $910.3 million at March 31, 2025 [7][32]. - Net interest income increased by $1.2 million, or 14.7%, to $9.3 million for Q2 2025, compared to $8.1 million for Q1 2025 [7][10]. Credit Quality and Provision for Losses - Total nonperforming loans decreased by $6.3 million, or 65.1%, to $3.4 million at June 30, 2025, from $9.7 million at March 31, 2025 [7][29]. - A provision for credit losses of $170 thousand was recorded for Q2 2025, compared to a release of provision for credit losses of $203 thousand in Q1 2025 [14][18]. - The allowance for credit losses on loans to total loans outstanding was 0.94% at June 30, 2025, compared to 0.95% at March 31, 2025 [31][32]. Noninterest Income and Expenses - Total noninterest income increased by $22 thousand, or 2.0%, to $1.1 million for Q2 2025, compared to Q1 2025 [19][20]. - Total noninterest expense decreased by $249 thousand, or 3.1%, to $7.7 million for Q2 2025, compared to Q1 2025 [7][25]. Capital Management - Stockholders' equity totaled $106.0 million at June 30, 2025, an increase of $1.6 million, or 1.5%, from $104.4 million at March 31, 2025 [34]. - The company maintained capital levels in excess of regulatory requirements and was categorized as "well-capitalized" at June 30, 2025 [7][34].