Sound Financial Bancorp, Inc. Q4 2025 Results

Core Viewpoint - Sound Financial Bancorp, Inc. reported a net income of $2.2 million for Q4 2025, reflecting a year-over-year increase in earnings and a cash dividend declaration of $0.21 per share [1][2]. Financial Performance - Total assets increased by $32.0 million, or 3.0%, to $1.09 billion at December 31, 2025, compared to $1.06 billion at September 30, 2025, and increased by $98.5 million, or 9.9%, from $993.6 million at December 31, 2024 [6]. - Loans held-for-portfolio decreased by $4.2 million, or 0.5%, to $905.5 million at December 31, 2025, compared to $909.7 million at September 30, 2025, but increased by $5.4 million, or 0.6%, from $900.2 million at December 31, 2024 [6]. - Total deposits increased by $49.9 million, or 5.6%, to $948.9 million at December 31, 2025, from $898.9 million at September 30, 2025, and increased by $111.1 million, or 13.3%, from $837.8 million at December 31, 2024 [7]. - Net interest income decreased by $278 thousand, or 3.1%, to $8.7 million for Q4 2025, compared to $8.9 million for Q3 2025, but increased by $442 thousand, or 5.4%, from $8.2 million for Q4 2024 [8]. - Net interest margin (NIM) was 3.36% for Q4 2025, down from 3.48% for Q3 2025, but up from 3.13% for Q4 2024 [18][24]. Credit Quality - Credit quality trends remained stable, with nonperforming loans increasing by $3.1 million, or 112.8%, to $5.8 million at December 31, 2025, from $2.7 million at September 30, 2025 [11][42]. - The allowance for credit losses on loans to total loans outstanding was 0.95% at December 31, 2025, compared to 0.94% at both September 30, 2025, and December 31, 2024 [43]. Noninterest Income and Expense - Total noninterest income decreased by $14 thousand, or 1.6%, to $867 thousand for Q4 2025, compared to $881 thousand for Q3 2025, and decreased by $293 thousand, or 25.3%, compared to $1.16 million for Q4 2024 [10][30]. - Total noninterest expense decreased by $836 thousand, or 10.9%, to $6.8 million for Q4 2025, compared to $7.5 million for Q4 2024 [11][35]. Balance Sheet and Capital Management - Cash and cash equivalents increased by $37.3 million, or 36.9%, to $138.5 million at December 31, 2025, compared to $101.2 million at September 30, 2025 [37]. - The company maintained capital levels in excess of regulatory requirements and was categorized as "well-capitalized" at December 31, 2025 [15].