Globenewswire·2026-01-27 23:19Core 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 - Net income for Q4 2025 was $2.2 million, or $0.87 diluted earnings per share, compared to $1.7 million, or $0.66 per share in Q3 2025, and $1.9 million, or $0.74 per share in Q4 2024 [1]. - Total assets increased by $32.0 million, or 3.0%, to $1.09 billion at December 31, 2025, from $1.06 billion at September 30, 2025, and increased by $98.5 million, or 9.9%, from $993.6 million at December 31, 2024 [5][30]. - Total deposits rose by $49.9 million, or 5.6%, to $948.9 million at December 31, 2025, compared to $898.9 million at September 30, 2025, and increased by $111.1 million, or 13.3%, from $837.8 million at December 31, 2024 [6][30]. Loan and Deposit Trends - 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 [5][35]. - The loans-to-deposits ratio was 96% at December 31, 2025, down from 101.45% at September 30, 2025, and 108% at December 31, 2024 [7]. Credit Quality - Nonperforming loans increased by $3.1 million, or 112.8%, to $5.8 million at December 31, 2025, from $2.7 million at September 30, 2025, but decreased by $1.7 million, or 22.8%, from $7.5 million at December 31, 2024 [7][36]. - 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 [38]. Income and Expenses - 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][11]. - Total noninterest income decreased by $14 thousand, or 1.6%, to $867 thousand for Q4 2025, compared to Q3 2025, and decreased by $293 thousand, or 25.3%, compared to Q4 2024 [10][26]. - Total noninterest expense decreased by $836 thousand, or 10.9%, to $6.8 million for Q4 2025, compared to Q3 2025, and decreased by $218 thousand, or 3.1%, compared to Q4 2024 [10][30]. Operational Insights - The company emphasized consistent expense control and operational improvements, positioning itself for future recovery despite challenges in the mortgage market [2][3]. - The CEO noted that every employee contributed to the results, demonstrating an ability to do more with less [2].