Sound Financial Bancorp, Inc. (Nasdaq: SFBC), the holding company
(the "Company") for Sound Community Bank (the "Bank"), today
reported net income of $2.9 million for the quarter ended
December 31, 2022, or $1.12 diluted earnings per share, as
compared to net income of $2.5 million, or $0.97 diluted earnings
per share, for the quarter ended September 30, 2022, and $1.9
million, or $0.70 diluted earnings per share, for the quarter ended
December 31, 2021. The Company also announced today that its
Board of Directors declared a cash dividend on Company common stock
of $0.17 per share, payable on February 23, 2023 to
stockholders of record as of the close of business on
February 9, 2023.
Comments from the President and Chief
Executive Officer
“Despite the continual increase in interest rates, and
significant economic uncertainty, we sustained our loan origination
efforts and posted our eighth consecutive quarter of loan growth,”
remarked Ms. Stewart, President and Chief Executive Officer.
"Organic funding via deposits remains very competitive but we
continue our emphasis on the development of full relationships and
generation of business and consumer deposits," concluded
Stewart.
Q4 2022 Financial Performance |
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Total assets decreased $5.9 million or 0.6% to $976.4 million at
December 31, 2022, from $982.2 million at September 30, 2022,
and increased $56.7 million or 6.2% from $919.7 million at
December 31, 2021.Loans held-for-portfolio increased $14.5
million or 1.7% to $866.0 million at December 31, 2022,
compared to $851.4 million at September 30, 2022, and increased
$179.6 million or 26.2% from $686.4 million at December 31,
2021. Total deposits decreased $6.6 million or 0.8% to $808.8
million at December 31, 2022, from $815.4 million at September
30, 2022, and increased $10.4 million or 1.3% from $798.3 million
at December 31, 2021. Noninterest-bearing deposits decreased
$19.1 million or 9.9% to $173.2 million at December 31, 2022
compared to $192.3 million at September 30, 2022, and decreased
$17.3 million or 9.1% compared to $190.5 million at
December 31, 2021.Our loan-to-deposit ratio was 107% at
December 31, 2022, compared to 105% at September 30, 2022 and
86% at December 31, 2021.Total nonperforming loans increased
$473 thousand or 19.0% to $3.0 million at December 31, 2022,
from $2.5 million at September 30, 2022, and decreased $2.6 million
or 46.7% from $5.6 million at December 31, 2021. |
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Net interest income increased $91 thousand or 0.9% to $9.7 million
for the quarter ended December 31, 2022, from $9.6 million for
the quarter ended September 30, 2022, and increased $2.0 million or
25.6% from $7.7 million for the quarter ended December 31,
2021.Net interest margin ("NIM"), annualized, was 4.05% for the
quarter ended December 31, 2022, compared to 4.13% for the
quarter ended September 30, 2022 and 3.53% for the quarter ended
December 31, 2021. A $125 thousand provision for
loan losses was recorded for the quarter ended December 31,
2022, compared to a $375 thousand provision for loan losses for the
quarter ended September 30, 2022 and no provision for loan losses
for the quarter ended December 31, 2021. At December 31,
2022, the allowance for loan losses to total nonperforming loans
and to total loans was 256.84% and 0.88%,
respectively. Net gain on sale of loans was $49 thousand
for the quarter ended December 31, 2022, compared to $48
thousand for the quarter ended September 30, 2022 and $507 thousand
for the quarter ended December 31, 2021. The Bank
continued to maintain capital levels in excess of regulatory
requirements and was categorized as "well-capitalized" at
December 31, 2022. |
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Operating Results
Net interest income increased $91 thousand, or 0.9%, to $9.7
million for the quarter ended December 31, 2022, compared to
$9.6 million for the quarter ended September 30, 2022, and
increased $2.0 million, or 25.6%, from $7.7 million for the quarter
ended December 31, 2021. The increase in the current quarter,
compared to the prior quarter and the fourth quarter of 2021 were
primarily the result of a higher average balance of and yield
earned on average interest-earning assets, partially offset by a
higher average balance of and rate paid on average interest-bearing
liabilities.
Interest income increased $1.0 million, or 9.7%, to $11.8
million for the quarter ended December 31, 2022, compared to
$10.8 million for the quarter ended September 30, 2022, and
increased $3.5 million, or 41.4%, from $8.4 million for the quarter
ended December 31, 2021. The increase from the prior quarter
was primarily due to higher average loan balances, an 18 basis
point rate increase in the average yield on loans and a 131 basis
point rate increase in the average yield on investments and
interest-bearing cash following increases in the targeted federal
funds rate throughout 2022, partially offset by lower average
balances of investments and interest-bearing cash. The increase in
interest income from the same quarter last year was due primarily
to higher average loan balances, a 37 basis point increase in the
average loan yield and a 305 basis point increase in average yield
on investments and interest-bearing cash, partially offset by a
lower average balance of investments and interest-bearing cash.
Interest income on loans increased $751 thousand, or 7.3%, to
$11.1 million for the quarter ended December 31, 2022,
compared to $10.3 million for the quarter ended September 30, 2022,
and increased $2.8 million, or 34.5%, from $8.2 million for the
quarter ended December 31, 2021. The average balance of total
loans was $861.4 million for the quarter ended December 31,
2022, compared to $833.2 million for the quarter ended September
30, 2022 and $690.7 million for the quarter ended December 31,
2021. The average yield on total loans was 5.10% for the quarter
ended December 31, 2022, compared to 4.92% for the quarter
ended September 30, 2022 and 4.73% for the quarter ended
December 31, 2021. The increase in the average loan yield
during the current quarter compared to the prior quarter and fourth
quarter of 2021 was primarily due to variable rate loans adjusting
to higher market interest rates and new loan originations at higher
interest rates. Interest income on investments and interest-bearing
cash increased $292 thousand to $741 thousand for the quarter ended
December 31, 2022, compared to $449 thousand for the quarter
ended September 30, 2022, and increased $620 thousand from $121
thousand for the quarter ended December 31, 2021, due to a
higher average yield on investments and interest-bearing cash,
partially offset by a lower average balance as excess cash
liquidity was deployed into higher yielding loans during the
current quarter.
Interest expense increased $952 thousand, or 80.7%, to $2.1
million for the quarter ended December 31, 2022, from $1.2
million for the quarter ended September 30, 2022, and increased
$1.5 million, or 231.4%, from $643 thousand for the quarter ended
December 31, 2021. The increase in interest expense during the
current quarter from the prior quarter was primarily the result of
a $12.9 million increase in the average balance of borrowings,
comprised of Federal Home Loan Bank ("FHLB") advances, and a $55.7
million increase in the average balance of certificate accounts, as
well as higher average rates paid on all interest-bearing deposits,
partially offset by a $36.9 million decrease in the average balance
of interest-bearing deposits other than certificate accounts. The
increase in interest expense during the current quarter from the
comparable period a year ago was primarily the result of a $59.3
million increase in the average balance of borrowings and a $75.3
million increase in the average balance of certificate accounts, as
well as higher average rates paid on all interest-bearing deposits,
partially offset by a $52.6 million decrease in the average balance
of interest-bearing deposits other than certificate accounts. The
average cost of total borrowings, comprised of FHLB advances and
subordinated notes, increased to 4.20% for the quarter ended
December 31, 2022, from 3.06% for the quarter ended September
30, 2022, and decreased from 5.73% for the quarter ended
December 31, 2021, reflecting the increased use of lower cost
FHLB advances during the second half of 2022 to supplement our
liquidity needs. The average balance of our total borrowings
increased $12.9 million to $71.0 million from $58.1 million for the
quarter ended September 30, 2022, and increased $59.4 million from
$11.6 million for the quarter ended December 31, 2021 as we
used FHLB advances to fund loan growth.
Net interest margin (annualized) was 4.05% for the quarter ended
December 31, 2022, compared to 4.13% for the quarter ended
September 30, 2022 and 3.53% for the quarter ended
December 31, 2021. The decrease in net interest margin from
the prior quarter was primarily due to cost of funding increasing
at a faster pace than the yield earned on interest-earning assets,
driven by the higher average balance of borrowings and certificate
accounts, partially offset by the increase in the average balance
of loans. The increase from the same quarter a year ago was the
result of an increase in interest income on interest-earning
assets, driven by the higher average balance of and yield earned on
loans, partially offset by an increase in the cost of funding
during the second half of 2022.
The Company recorded a provision for loan losses of $125
thousand for the quarter ended December 31, 2022, as compared
to $375 thousand for the quarter ended September 30, 2022 and no
provision for the quarter ended December 31, 2021. The
decrease in the provision for loan losses for the quarter ended
December 31, 2022 compared to the quarter ended September 30,
2022 resulted primarily from the lower growth in our loans
held-for-portfolio. The provision for loan losses in the fourth
quarter of 2022 also reflects the inherent uncertainty related to
the economic environment as a result of local, national and global
events.
Noninterest income remained essentially unchanged at $1.0
million for the quarters ended December 31, 2022 and September
30, 2022, and decreased $465 thousand, or 31.4%, from $1.5 million
for the quarter ended December 31, 2021. The decrease in
noninterest income from the comparable period in 2021 was primarily
due to a $458 thousand decrease in net gain on sale of loans as a
result of a decline in both the amount of loans originated for sale
and gross margins for loans sold and a $13 thousand decrease in the
fair value adjustment on mortgage servicing rights, partially
offset by a $40 thousand increase in earnings on the cash surrender
value of bank-owned life insurance (“BOLI”). Loans sold during the
quarter ended December 31, 2022, totaled $3.5 million,
compared to $2.3 million and $19.1 million during the quarters
ended September 30, 2022 and December 31, 2021,
respectively.
Noninterest expense increased $82 thousand, or 1.2%, to $7.1
million for the quarter ended December 31, 2022, compared to
$7.0 million for the quarter ended September 30, 2022 and increased
$190 thousand, or 2.7%, from $6.9 million for the quarter ended
December 31, 2021. The increase from the quarter ended
September 30, 2022 was primarily a result of an increase in
salaries and benefits expense of $190 thousand resulting from lower
deferred compensation and higher medical expenses, partially offset
by a decrease in incentive compensation expense as a result of
lower loan and deposit growth. Operations expense decreased $92
thousand primarily due to decreases in various expenses including
marketing expenses and charitable contributions, insurance costs,
and office expenses, partially offset by an increase in audit and
professional fees. The increase in noninterest expense compared to
the quarter ended December 31, 2021 was primarily due to an
increase in salaries and benefits of $448 thousand primarily due to
higher wages and medical expenses and lower deferred compensation,
partially offset by a decrease in incentive compensation as a
result of a lower percentage earned on loans originated, changes to
incentive compensation programs, such as the addition of
non-production performance requirements, and lower commission
expense related to a decline in mortgage originations. Operations
expense decreased $243 thousand compared to the quarter ended
December 31, 2021 due to lower loan origination costs due to
lower mortgage origination volume, a lower reserve for unfunded
commitments and decreases in various accounts including marketing,
charitable contributions and professional fees. These decreases
were partially offset by increases in various accounts including
travel expenses, debit card processing, audit fees, fixed assets
and office expenses.
The efficiency ratio for the quarter ended December 31,
2022 was 66.49%, compared to 66.23% for the quarter ended September
30, 2022 and 75.31% for the quarter ended December 31, 2021.
The improvement in the efficiency ratio for the current quarter
compared to the same period in the prior year was primarily due to
higher net interest income, partially offset by higher noninterest
expense and lower noninterest income.
Balance Sheet Review, Capital Management
and Credit Quality
Assets at December 31, 2022 totaled $976.4 million,
compared to $982.2 million at September 30, 2022 and $919.7 million
at December 31, 2021. The decrease in total assets from the
sequential quarter was primarily due to a decrease in cash and cash
equivalents as a result of a decrease in deposits and to repay
borrowings. The increase from one year ago was primarily a result
of increases in loans held-for-portfolio and investment securities,
partially offset by lower balances in cash and cash
equivalents.
Cash and cash equivalents decreased $18.2 million, or 24.0%, to
$57.8 million at December 31, 2022, compared to $76.1 million
at September 30, 2022, and decreased $125.8 million, or 68.5%, from
$183.6 million at December 31, 2021. The decrease from the
prior quarter-end was primarily due to the deployment of excess
liquidity into higher yielding loans. The decrease from one year
ago was primarily due to deploying cash earning a nominal yield
into higher interest-earning loans and investments securities,
partially offset by an increase in deposits, primarily certificate
accounts.
Investment securities decreased $197 thousand, or 1.6%, to $12.4
million at December 31, 2022, compared to $12.6 million at
September 30, 2022, and increased $4.0 million, or 47.4%, from $8.4
million at December 31, 2021. Held-to-maturity securities
totaled $2.2 million at both December 31, 2022 and September
30, 2022, compared to zero at December 31, 2021.
Available-for-sale securities totaled $10.2 million at
December 31, 2022, compared to $10.4 million at September 30,
2022, and $8.4 million at December 31, 2021. The decrease in
available-for-sale securities from the prior quarter-end was
primarily due to the call of a municipal bond for $260 thousand and
regularly scheduled payments, partially offset by a lower net
unrealized losses resulting from an increase in market values
during the quarter. The increase from one year ago was primarily
due to investment purchases during the year, partially offset by
the call of one municipal bond, regularly scheduled payments and
maturities, and net unrealized losses resulting from the increases
in market interest rates during the year.
Loans held-for-portfolio increased to $866.0
million at December 31, 2022, compared to $851.4 million at
September 30, 2022 and increased from $686.4 million at
December 31, 2021. The increase in loans held-for-portfolio at
December 31, 2022, compared to the prior quarter-end,
primarily resulted from increases in residential, construction and
land, and consumer loans, partially offset by a decline in
commercial real estate and multifamily loans. The increase in loans
held-for-portfolio at December 31, 2022, compared to one year
ago, primarily resulted from increases across all loan categories,
excluding commercial business loans which decreased between the
periods primarily due to SBA loan forgiveness payments on Paycheck
Protection Program loans. The increase in loans held-for-portfolio
primarily resulted from focused marketing campaigns, increased
utilization of digital marketing tools and the addition of
experienced lending staff.
Nonperforming assets (“NPAs”), which are comprised of nonaccrual
loans, including nonperforming troubled debt restructurings
(“TDRs”), other real estate owned (“OREO”) and other repossessed
assets, increased $473 thousand, or 15.0%, to $3.6 million at
December 31, 2022, from $3.1 million at September 30, 2022 and
decreased $2.6 million, or 41.7% from $6.2 million at
December 31, 2021. The increase in nonperforming assets from
the prior quarter-end was primarily due to the addition of four
nonaccrual loans during the current quarter, including two
one-to-four family loans, one home equity loan and one land loan.
The decrease from one year ago was primarily due to the payoff of a
$2.3 million nonperforming multifamily loan during 2022. Loans
classified as TDRs totaled $2.0 million, $2.0 million and $2.6
million at December 31, 2022, September 30, 2022 and
December 31, 2021, respectively, of which $103 thousand, $108
thousand and $422 thousand, respectively, were classified as
nonperforming at those dates.
NPAs to total assets were 0.37%, 0.32% and 0.68% at
December 31, 2022, September 30, 2022 and December 31,
2021, respectively. The allowance for loan losses to total loans
outstanding was 0.88%, 0.88% and 0.92% at December 31, 2022,
September 30, 2022 and December 31, 2021, respectively. Net
loan charge-offs for the fourth quarter of 2022 totaled $15
thousand, compared to $3 thousand for the third quarter of 2022,
and $21 thousand for the fourth quarter of 2021.
The following table summarizes our NPAs at the dates indicated
(dollars in thousands):
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
Nonperforming
Loans: |
|
|
|
|
|
|
|
|
|
One-to-four family |
$ |
2,135 |
|
|
$ |
1,960 |
|
|
$ |
1,670 |
|
|
$ |
1,676 |
|
|
$ |
2,207 |
|
Home equity loans |
|
142 |
|
|
|
133 |
|
|
|
152 |
|
|
|
155 |
|
|
|
140 |
|
Commercial and
multifamily |
|
— |
|
|
|
— |
|
|
|
2,307 |
|
|
|
2,336 |
|
|
|
2,380 |
|
Construction and land |
|
324 |
|
|
|
29 |
|
|
|
30 |
|
|
|
31 |
|
|
|
33 |
|
Manufactured homes |
|
96 |
|
|
|
99 |
|
|
|
117 |
|
|
|
135 |
|
|
|
122 |
|
Floating homes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
493 |
|
Commercial business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
170 |
|
|
|
176 |
|
Other consumer |
|
262 |
|
|
|
265 |
|
|
|
233 |
|
|
|
244 |
|
|
|
— |
|
Total nonperforming loans |
|
2,959 |
|
|
|
2,486 |
|
|
|
4,509 |
|
|
|
4,747 |
|
|
|
5,552 |
|
OREO and Other
Repossessed Assets: |
|
|
|
|
|
|
|
|
|
One-to-four family |
|
84 |
|
|
|
84 |
|
|
|
84 |
|
|
|
84 |
|
|
|
84 |
|
Commercial and
multifamily |
|
575 |
|
|
|
575 |
|
|
|
575 |
|
|
|
575 |
|
|
|
575 |
|
Total OREO and repossessed assets |
|
659 |
|
|
|
659 |
|
|
|
659 |
|
|
|
659 |
|
|
|
659 |
|
Total nonperforming assets |
$ |
3,618 |
|
|
$ |
3,145 |
|
|
$ |
5,168 |
|
|
$ |
5,406 |
|
|
$ |
6,211 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
Loans: |
|
|
|
|
|
|
|
|
|
One-to-four family |
|
59.0 |
% |
|
|
62.3 |
% |
|
|
32.3 |
% |
|
|
31.0 |
% |
|
|
35.5 |
% |
Home equity loans |
|
3.9 |
|
|
|
4.2 |
|
|
|
2.9 |
|
|
|
2.9 |
|
|
|
2.3 |
|
Commercial and
multifamily |
|
— |
|
|
|
— |
|
|
|
44.7 |
|
|
|
43.2 |
|
|
|
38.3 |
|
Construction and land |
|
9.0 |
|
|
|
0.9 |
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
0.5 |
|
Manufactured homes |
|
2.7 |
|
|
|
3.2 |
|
|
|
2.3 |
|
|
|
2.5 |
|
|
|
2.0 |
|
Floating homes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.9 |
|
Commercial business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.1 |
|
|
|
2.8 |
|
Other consumer |
|
7.2 |
|
|
|
8.4 |
|
|
|
4.5 |
|
|
|
4.5 |
|
|
|
— |
|
Total nonperforming loans |
|
81.8 |
|
|
|
79.0 |
|
|
|
87.3 |
|
|
|
87.8 |
|
|
|
89.3 |
|
OREO and Other
Repossessed Assets: |
|
|
|
|
|
|
|
|
|
One-to-four family |
|
2.3 |
|
|
|
2.7 |
|
|
|
1.6 |
|
|
|
1.6 |
|
|
|
1.4 |
|
Commercial and
multifamily |
|
15.9 |
|
|
|
18.3 |
|
|
|
11.1 |
|
|
|
10.6 |
|
|
|
9.3 |
|
Total OREO and repossessed assets |
|
18.2 |
|
|
|
21.0 |
|
|
|
12.7 |
|
|
|
12.2 |
|
|
|
10.7 |
|
Total nonperforming assets |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
The following table summarizes the allowance for
loan losses for the periods indicated (dollars in thousands,
unaudited):
|
For the Quarter Ended: |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
Allowance for Loan
Losses |
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
7,489 |
|
|
$ |
7,117 |
|
|
$ |
6,407 |
|
|
$ |
6,306 |
|
|
$ |
6,327 |
|
Provision for loan losses
during the period |
|
125 |
|
|
|
375 |
|
|
|
600 |
|
|
|
125 |
|
|
|
— |
|
Net (charge-offs)/recoveries
during the period |
|
(15 |
) |
|
|
(3 |
) |
|
|
110 |
|
|
|
(24 |
) |
|
|
(21 |
) |
Balance at end of period |
$ |
7,599 |
|
|
$ |
7,489 |
|
|
$ |
7,117 |
|
|
$ |
6,407 |
|
|
$ |
6,306 |
|
Allowance for loan losses to
total loans |
|
0.88 |
% |
|
|
0.88 |
% |
|
|
0.88 |
% |
|
|
0.90 |
% |
|
|
0.92 |
% |
Allowance for loan losses to
total nonperforming loans |
|
256.81 |
% |
|
|
301.25 |
% |
|
|
157.84 |
% |
|
|
134.97 |
% |
|
|
113.58 |
% |
Deposits decreased $6.6 million, or 0.8%, to $808.8 million at
December 31, 2022, from $815.4 million at September 30, 2022
and increased $10.4 million, or 1.3%, from $798.3 million at
December 31, 2021. The decrease in deposits compared to the
prior quarter-end was primarily a result of lower balances in all
deposit products, excluding certificate accounts, largely driven by
seasonal declines in escrow accounts and year end distributions in
business accounts. The increase in our deposits compared to one
year ago was a result of an increase in certificate accounts, which
was primarily used to fund organic loan growth in 2022. Our
noninterest-bearing deposits decreased $19.1 million, or 9.9% to
$173.2 million at December 31, 2022, compared to $192.3
million at September 30, 2022 and decreased $17.3 million, or 9.1%
from $190.5 million at December 31, 2021. Noninterest-bearing
deposits represented 21.4%, 23.6% and 23.9% of total deposits at
December 31, 2022, September 30, 2022 and December 31,
2021, respectively.
There were $43.0 million of outstanding FHLB advances at
December 31, 2022, as compared to $44.5 million at September
30, 2022 and none at December 31, 2021. During 2022, FHLB
advances were primarily used to support organic loan growth and to
maintain liquidity ratios in line with our asset/liability
objectives. Subordinated notes, net totaled $11.7 million at each
of December 31, 2022, September 30, 2022 and December 31,
2021.
Stockholders’ equity totaled $97.7 million at December 31,
2022, an increase of $2.7 million, or 2.9%, from $95.0 million at
September 30, 2022, and an increase of $4.3 million, or 4.7%, from
$93.4 million at December 31, 2021. The increase in
stockholders’ equity from September 30, 2022 was primarily the
result of $2.9 million of net income earned during the current
quarter, a $148 thousand decrease in accumulated other
comprehensive loss, net of tax, and $28 thousand in proceeds from
exercises of stock options, partially offset by the payment of $441
thousand in dividends to Company stockholders .
Sound Financial Bancorp, Inc.,
a bank holding company, is the parent company of Sound Community
Bank, and is headquartered in Seattle, Washington with full-service
branches in Seattle, Tacoma, Mountlake Terrace, Sequim, Port
Angeles, Port Ludlow and University Place. Sound Community Bank is
a Fannie Mae Approved Lender and Seller/Servicer with one Loan
Production Office located in the Madison Park neighborhood of
Seattle, Washington. For more information, please visit
www.soundcb.com.
Forward Looking Statement
Disclaimer
When used in this press release and in documents
filed or furnished by Sound Financial Bancorp, Inc. (the "Company")
with the Securities and Exchange Commission (the "SEC"), in the
Company's other press releases or other public or stockholder
communications, and in oral statements made with the approval of an
authorized executive officer, the words or phrases "will likely
result," "are expected to," "will continue," "is anticipated,"
"estimate," "project," "intends" or similar expressions are
intended to identify "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements, which are based on various
underlying assumptions and expectations and are subject to risks,
uncertainties and other unknown factors, may include projections of
our future financial performance based on our growth strategies and
anticipated trends in our business. These statements are only
predictions based on our current expectations and projections about
future events, and may turn out to be wrong because of inaccurate
assumptions we might make, because of the factors listed below or
because of other factors that we cannot foresee that could cause
our actual results to be materially different from historical
results or from any future results expressed or implied by such
forward-looking statements. You are cautioned not to place undue
reliance on any forward-looking statements, which speak only as of
the date made.
Factors which could cause actual results to
differ materially, include, but are not limited to: potential
adverse impacts to economic conditions in the Company’s local
market areas, other markets where the Company has lending
relationships, or other aspects of the Company's business
operations or financial markets, including, without limitation, as
a result of employment levels, labor shortages and the effects of
inflation or deflation, a potential recession or slowed economic
growth caused by increasing political instability from acts of war
including Russia's invasion of Ukraine, as well as supply chain
disruptions and any governmental or societal responses to new
COVID-19 variants; changes in consumer spending, borrowing and
savings habits; fluctuations in interest rates; the risks of
lending and investing activities, including changes in the level
and direction of loan delinquencies and write-offs and changes in
estimates of the adequacy of the allowance for loan losses; the
Company's ability to access cost-effective funding; fluctuations in
real estate values and both residential and commercial real estate
market conditions; demand for loans and deposits in the Company's
market area; secondary market conditions for loans; results of
examinations of the Company or its wholly owned bank subsidiary by
their regulators; increased competition; changes in management's
business strategies; legislative changes; changes in the regulatory
and tax environments in which the Company operates; and other
factors described in the Company's latest Annual Report on Form
10-K and Quarterly Reports on Form 10-Q and other documents filed
with or furnished to the Securities and Exchange Commission, which
are available at www.soundcb.com and on the SEC's website at
www.sec.gov. The risks inherent in these factors could cause the
Company's actual results to differ materially from those expressed
in any forward-looking statements made by, or on behalf of, the
Company and could negatively affect the Company's operating and
stock performance.
The Company does not undertake—and specifically
disclaims any obligation—to revise any forward-looking statement to
reflect the occurrence of anticipated or unanticipated events or
circumstances after the date of such statement.
CONSOLIDATED INCOME STATEMENTS(Dollars in
thousands, unaudited)
|
|
For the Quarter Ended |
|
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
Interest income |
|
$ |
11,819 |
|
|
$ |
10,776 |
|
|
$ |
8,986 |
|
|
$ |
8,213 |
|
|
$ |
8,359 |
|
Interest expense |
|
|
2,131 |
|
|
|
1,179 |
|
|
|
594 |
|
|
|
595 |
|
|
|
643 |
|
Net interest income |
|
|
9,688 |
|
|
|
9,597 |
|
|
|
8,392 |
|
|
|
7,618 |
|
|
|
7,716 |
|
Provision for loan losses |
|
|
125 |
|
|
|
375 |
|
|
|
600 |
|
|
|
125 |
|
|
|
— |
|
Net interest income after
provision for loan losses |
|
|
9,563 |
|
|
|
9,222 |
|
|
|
7,792 |
|
|
|
7,493 |
|
|
|
7,716 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Service charges and fee
income |
|
|
618 |
|
|
|
604 |
|
|
|
596 |
|
|
|
549 |
|
|
|
632 |
|
(Earnings) loss on cash
surrender value of bank-owned life insurance |
|
|
175 |
|
|
|
59 |
|
|
|
(35 |
) |
|
|
21 |
|
|
|
135 |
|
Mortgage servicing income |
|
|
303 |
|
|
|
306 |
|
|
|
313 |
|
|
|
320 |
|
|
|
323 |
|
Fair value adjustment on
mortgage servicing rights |
|
|
(127 |
) |
|
|
9 |
|
|
|
57 |
|
|
|
268 |
|
|
|
(114 |
) |
Net gain on sale of loans |
|
|
49 |
|
|
|
48 |
|
|
|
84 |
|
|
|
365 |
|
|
|
507 |
|
Total noninterest income |
|
|
1,018 |
|
|
|
1,026 |
|
|
|
1,015 |
|
|
|
1,523 |
|
|
|
1,483 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
|
4,234 |
|
|
|
4,044 |
|
|
|
3,969 |
|
|
|
4,167 |
|
|
|
3,786 |
|
Operations |
|
|
1,489 |
|
|
|
1,581 |
|
|
|
1,428 |
|
|
|
1,314 |
|
|
|
1,732 |
|
Regulatory assessments |
|
|
136 |
|
|
|
116 |
|
|
|
99 |
|
|
|
101 |
|
|
|
96 |
|
Occupancy |
|
|
418 |
|
|
|
447 |
|
|
|
439 |
|
|
|
432 |
|
|
|
451 |
|
Data processing |
|
|
841 |
|
|
|
848 |
|
|
|
849 |
|
|
|
821 |
|
|
|
863 |
|
Total noninterest expense |
|
|
7,118 |
|
|
|
7,036 |
|
|
|
6,784 |
|
|
|
6,835 |
|
|
|
6,928 |
|
Income before provision for
income taxes |
|
|
3,463 |
|
|
|
3,212 |
|
|
|
2,023 |
|
|
|
2,181 |
|
|
|
2,271 |
|
Provision for income
taxes |
|
|
539 |
|
|
|
666 |
|
|
|
409 |
|
|
|
458 |
|
|
|
407 |
|
Net income |
|
$ |
2,924 |
|
|
$ |
2,546 |
|
|
$ |
1,614 |
|
|
$ |
1,723 |
|
|
$ |
1,864 |
|
CONSOLIDATED INCOME STATEMENTS(Dollars in
thousands, unaudited)
|
|
For the Year Ended
December 31 |
|
|
|
2022 |
|
|
|
2021 |
|
Interest income |
|
$ |
39,795 |
|
|
$ |
33,874 |
|
Interest expense |
|
|
4,500 |
|
|
|
3,954 |
|
Net interest income |
|
|
35,295 |
|
|
|
29,920 |
|
Provision for loan losses |
|
|
1,225 |
|
|
|
425 |
|
Net interest income after
provision for loan losses |
|
|
34,070 |
|
|
|
29,495 |
|
Noninterest income: |
|
|
|
|
Service charges and fee
income |
|
|
2,368 |
|
|
|
2,247 |
|
Earnings on cash surrender
value of bank-owned life insurance |
|
|
219 |
|
|
|
416 |
|
Mortgage servicing income |
|
|
1,242 |
|
|
|
1,284 |
|
Fair value adjustment on
mortgage servicing rights |
|
|
207 |
|
|
|
(808 |
) |
Net gain on sale of loans |
|
|
546 |
|
|
|
4,190 |
|
Total noninterest income |
|
|
4,582 |
|
|
|
7,329 |
|
Noninterest expense: |
|
|
|
|
Salaries and benefits |
|
|
16,415 |
|
|
|
14,257 |
|
Operations |
|
|
5,812 |
|
|
|
5,765 |
|
Regulatory assessments |
|
|
452 |
|
|
|
379 |
|
Occupancy |
|
|
1,737 |
|
|
|
1,748 |
|
Data processing |
|
|
3,360 |
|
|
|
3,263 |
|
Net gain on OREO and
repossessed assets |
|
|
— |
|
|
|
(16 |
) |
Total noninterest expense |
|
|
27,776 |
|
|
|
25,396 |
|
Income before provision for
income taxes |
|
|
10,876 |
|
|
|
11,428 |
|
Provision for income
taxes |
|
|
2,072 |
|
|
|
2,272 |
|
Net income |
|
$ |
8,804 |
|
|
$ |
9,156 |
|
CONSOLIDATED BALANCE SHEET(Dollars in
thousands, unaudited)
|
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
57,836 |
|
|
$ |
76,064 |
|
|
$ |
80,051 |
|
|
$ |
197,091 |
|
|
$ |
183,590 |
|
Available-for-sale securities, at fair value |
|
|
10,207 |
|
|
|
10,396 |
|
|
|
9,382 |
|
|
|
10,223 |
|
|
|
8,419 |
|
Held-to-maturity securities, at amortized cost |
|
|
2,199 |
|
|
|
2,207 |
|
|
|
2,215 |
|
|
|
2,223 |
|
|
|
— |
|
Loans held-for-sale |
|
|
— |
|
|
|
1,908 |
|
|
|
100 |
|
|
|
1,297 |
|
|
|
3,094 |
|
Loans held-for-portfolio |
|
|
865,981 |
|
|
|
851,447 |
|
|
|
806,078 |
|
|
|
709,485 |
|
|
|
686,398 |
|
Allowance for loan losses |
|
|
(7,599 |
) |
|
|
(7,489 |
) |
|
|
(7,117 |
) |
|
|
(6,407 |
) |
|
|
(6,306 |
) |
Total loans held-for-portfolio, net |
|
|
858,382 |
|
|
|
843,958 |
|
|
|
798,961 |
|
|
|
703,078 |
|
|
|
680,092 |
|
Accrued interest receivable |
|
|
3,083 |
|
|
|
2,809 |
|
|
|
2,350 |
|
|
|
2,117 |
|
|
|
2,217 |
|
Bank-owned life insurance, net |
|
|
21,314 |
|
|
|
21,140 |
|
|
|
21,081 |
|
|
|
21,116 |
|
|
|
21,095 |
|
Other real estate owned ("OREO") and other repossessed assets,
net |
|
|
659 |
|
|
|
659 |
|
|
|
659 |
|
|
|
659 |
|
|
|
659 |
|
Mortgage servicing rights, at fair value |
|
|
4,687 |
|
|
|
4,787 |
|
|
|
4,754 |
|
|
|
4,668 |
|
|
|
4,273 |
|
Federal Home Loan Bank ("FHLB") stock, at cost |
|
|
2,832 |
|
|
|
2,897 |
|
|
|
2,317 |
|
|
|
1,117 |
|
|
|
1,046 |
|
Premises and equipment, net |
|
|
5,513 |
|
|
|
5,505 |
|
|
|
5,632 |
|
|
|
5,730 |
|
|
|
5,819 |
|
Right-of-use assets |
|
|
5,102 |
|
|
|
5,319 |
|
|
|
5,548 |
|
|
|
5,777 |
|
|
|
5,811 |
|
Other assets |
|
|
4,537 |
|
|
|
4,597 |
|
|
|
3,954 |
|
|
|
3,758 |
|
|
|
3,576 |
|
TOTAL ASSETS |
|
$ |
976,351 |
|
|
$ |
982,246 |
|
|
$ |
937,004 |
|
|
$ |
958,854 |
|
|
$ |
919,691 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
635,567 |
|
|
$ |
623,122 |
|
|
$ |
599,377 |
|
|
$ |
627,323 |
|
|
$ |
607,854 |
|
Noninterest-bearing deposits |
|
|
173,196 |
|
|
|
192,275 |
|
|
|
186,609 |
|
|
|
208,768 |
|
|
|
190,466 |
|
Total deposits |
|
|
808,763 |
|
|
|
815,397 |
|
|
|
785,986 |
|
|
|
836,091 |
|
|
|
798,320 |
|
Borrowings |
|
|
43,000 |
|
|
|
44,500 |
|
|
|
30,000 |
|
|
|
— |
|
|
|
— |
|
Accrued interest payable |
|
|
395 |
|
|
|
109 |
|
|
|
194 |
|
|
|
38 |
|
|
|
200 |
|
Lease liabilities |
|
|
5,448 |
|
|
|
5,749 |
|
|
|
5,980 |
|
|
|
6,211 |
|
|
|
6,242 |
|
Other liabilities |
|
|
8,318 |
|
|
|
8,071 |
|
|
|
9,210 |
|
|
|
9,169 |
|
|
|
8,571 |
|
Advance payments from borrowers for taxes and insurance |
|
|
1,046 |
|
|
|
1,799 |
|
|
|
922 |
|
|
|
1,851 |
|
|
|
1,366 |
|
Subordinated notes, net |
|
|
11,676 |
|
|
|
11,665 |
|
|
|
11,655 |
|
|
|
11,644 |
|
|
|
11,634 |
|
TOTAL LIABILITIES |
|
|
878,646 |
|
|
|
887,290 |
|
|
|
843,947 |
|
|
|
865,004 |
|
|
|
826,333 |
|
STOCKHOLDERS'
EQUITY: |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
26 |
|
|
|
26 |
|
|
|
26 |
|
|
|
26 |
|
|
|
26 |
|
Additional paid-in capital |
|
|
28,004 |
|
|
|
27,886 |
|
|
|
27,777 |
|
|
|
28,154 |
|
|
|
27,956 |
|
Retained earnings |
|
|
70,792 |
|
|
|
68,309 |
|
|
|
66,203 |
|
|
|
66,139 |
|
|
|
65,237 |
|
Accumulated other comprehensive (loss) income, net of tax |
|
|
(1,117 |
) |
|
|
(1,265 |
) |
|
|
(949 |
) |
|
|
(469 |
) |
|
|
139 |
|
TOTAL STOCKHOLDERS' EQUITY |
|
|
97,705 |
|
|
|
94,956 |
|
|
|
93,057 |
|
|
|
93,850 |
|
|
|
93,358 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
976,351 |
|
|
$ |
982,246 |
|
|
$ |
937,004 |
|
|
$ |
958,854 |
|
|
$ |
919,691 |
|
KEY FINANCIAL RATIOS(unaudited)
|
|
For the Quarter Ended |
|
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
Annualized return on average assets |
|
1.16 |
% |
|
1.04 |
% |
|
0.70 |
% |
|
0.75 |
% |
|
0.81 |
% |
Annualized return on average
equity |
|
11.94 |
|
|
10.61 |
|
|
6.86 |
|
|
7.39 |
|
|
7.90 |
|
Annualized net interest
margin(1) |
|
4.05 |
|
|
4.13 |
|
|
3.83 |
|
|
3.49 |
|
|
3.53 |
|
Annualized efficiency
ratio(2) |
|
66.49 |
% |
|
66.23 |
% |
|
72.12 |
% |
|
74.77 |
% |
|
75.31 |
% |
(1) Net interest income divided by average
interest earning assets.(2) Noninterest expense
divided by total revenue (net interest income and noninterest
income).
PER COMMON SHARE DATA(unaudited)
|
|
At or For the Quarter Ended |
|
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
Basic earnings per share |
|
$ |
1.13 |
|
|
$ |
0.99 |
|
|
$ |
0.62 |
|
|
$ |
0.66 |
|
|
$ |
0.72 |
|
Diluted earnings per
share |
|
$ |
1.12 |
|
|
$ |
0.97 |
|
|
$ |
0.61 |
|
|
$ |
0.65 |
|
|
$ |
0.70 |
|
Weighted-average basic shares
outstanding |
|
|
2,565,407 |
|
|
|
2,562,551 |
|
|
|
2,584,179 |
|
|
|
2,602,168 |
|
|
|
2,586,570 |
|
Weighted-average diluted
shares outstanding |
|
|
2,600,905 |
|
|
|
2,597,690 |
|
|
|
2,615,299 |
|
|
|
2,640,359 |
|
|
|
2,631,721 |
|
Common shares outstanding at
period-end |
|
|
2,583,619 |
|
|
|
2,581,949 |
|
|
|
2,578,595 |
|
|
|
2,621,531 |
|
|
|
2,613,768 |
|
Book value per share |
|
$ |
37.82 |
|
|
$ |
36.78 |
|
|
$ |
36.09 |
|
|
$ |
35.80 |
|
|
$ |
35.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE
PAID(Dollars in thousands, unaudited)
The following tables present, for the periods indicated, the
total dollar amount of interest income from average
interest-earning assets and the resultant yields, as well as the
interest expense on average interest-bearing liabilities, expressed
both in dollars and rates. Income and yields on tax-exempt
obligations have not been computed on a tax equivalent basis. All
average balances are daily average balances. Nonaccrual loans have
been included in the table as loans carrying a zero yield for the
period they have been on nonaccrual (dollars in thousands).
|
Three Months Ended |
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
AverageOutstandingBalance |
|
InterestEarned/Paid |
|
Yield/Rate |
|
AverageOutstandingBalance |
|
InterestEarned/Paid |
|
Yield/Rate |
|
AverageOutstandingBalance |
|
InterestEarned/Paid |
|
Yield/Rate |
Interest-Earning
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable |
$ |
861,371 |
|
|
$ |
11,078 |
|
5.10 |
% |
|
$ |
833,195 |
|
|
$ |
10,327 |
|
4.92 |
% |
|
$ |
690,680 |
|
|
$ |
8,238 |
|
4.73 |
% |
Investments and
interest-bearing cash |
|
88,503 |
|
|
|
741 |
|
3.32 |
% |
|
|
88,812 |
|
|
|
449 |
|
2.01 |
% |
|
|
176,942 |
|
|
|
121 |
|
0.27 |
% |
Total interest-earning
assets |
$ |
949,874 |
|
|
$ |
11,819 |
|
4.94 |
% |
|
$ |
922,007 |
|
|
$ |
10,776 |
|
4.64 |
% |
|
$ |
867,622 |
|
|
$ |
8,359 |
|
3.82 |
% |
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and money market
accounts |
$ |
174,410 |
|
|
$ |
88 |
|
0.20 |
% |
|
$ |
188,276 |
|
|
$ |
63 |
|
0.13 |
% |
|
$ |
183,730 |
|
|
$ |
36 |
|
0.08 |
% |
Demand and NOW accounts |
|
267,043 |
|
|
|
280 |
|
0.42 |
% |
|
|
290,106 |
|
|
|
164 |
|
0.22 |
% |
|
|
310,352 |
|
|
|
126 |
|
0.16 |
% |
Certificate accounts |
|
186,277 |
|
|
|
1,011 |
|
2.15 |
% |
|
|
130,541 |
|
|
|
503 |
|
1.53 |
% |
|
|
110,985 |
|
|
|
313 |
|
1.12 |
% |
Subordinated notes |
|
11,669 |
|
|
|
168 |
|
5.71 |
% |
|
|
11,658 |
|
|
|
168 |
|
5.72 |
% |
|
|
11,627 |
|
|
|
168 |
|
5.73 |
% |
Borrowings |
|
59,348 |
|
|
|
584 |
|
3.90 |
% |
|
|
46,462 |
|
|
|
281 |
|
2.40 |
% |
|
|
2 |
|
|
|
— |
|
— |
% |
Total interest-bearing
liabilities |
$ |
698,747 |
|
|
|
2,131 |
|
1.21 |
% |
|
$ |
667,043 |
|
|
|
1,179 |
|
0.70 |
% |
|
$ |
616,696 |
|
|
|
643 |
|
0.41 |
% |
Net interest
income/spread |
|
|
$ |
9,688 |
|
3.73 |
% |
|
|
|
$ |
9,597 |
|
3.94 |
% |
|
|
|
$ |
7,716 |
|
3.41 |
% |
Net interest margin |
|
|
|
|
4.05 |
% |
|
|
|
|
|
4.13 |
% |
|
|
|
|
|
3.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning
assets to interest-bearing liabilities |
|
136 |
% |
|
|
|
|
|
|
138 |
% |
|
|
|
|
|
|
141 |
% |
|
|
|
|
Noninterest-bearing
deposits |
$ |
183,800 |
|
|
|
|
|
|
$ |
189,379 |
|
|
|
|
|
|
$ |
190,551 |
|
|
|
|
|
Total deposits |
|
811,530 |
|
|
$ |
1,379 |
|
0.67 |
% |
|
|
798,302 |
|
|
$ |
730 |
|
0.36 |
% |
|
|
795,618 |
|
|
$ |
475 |
|
0.24 |
% |
Total funding (1) |
|
882,547 |
|
|
|
2,131 |
|
0.96 |
% |
|
|
856,422 |
|
|
|
1,179 |
|
0.55 |
% |
|
|
807,247 |
|
|
|
643 |
|
0.32 |
% |
(1) Total funding is the sum of average
interest-bearing liabilities and average noninterest-bearing
deposits. The cost of total funding is calculated as annualized
total interest expense divided by average total funding.
|
Year Ended |
|
December 31, 2022 |
|
December 31, 2021 |
|
AverageOutstandingBalance |
|
InterestEarned/Paid |
|
Yield/Rate |
|
AverageOutstandingBalance |
|
InterestEarned/Paid |
|
Yield/Rate |
Interest-Earning
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans receivable |
$ |
783,372 |
|
|
$ |
38,177 |
|
4.87 |
% |
|
$ |
650,045 |
|
|
$ |
33,389 |
|
5.14 |
% |
Investments and
interest-bearing cash |
|
124,331 |
|
|
|
1,618 |
|
1.30 |
% |
|
|
221,577 |
|
|
|
485 |
|
0.22 |
% |
Total interest-earning
assets |
$ |
907,703 |
|
|
$ |
39,795 |
|
4.38 |
% |
|
$ |
871,622 |
|
|
$ |
33,874 |
|
3.89 |
% |
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Savings and money market
accounts |
$ |
188,478 |
|
|
$ |
211 |
|
0.11 |
% |
|
$ |
171,406 |
|
|
$ |
180 |
|
0.11 |
% |
Demand and NOW accounts |
|
295,919 |
|
|
|
690 |
|
0.23 |
% |
|
|
289,096 |
|
|
|
611 |
|
0.21 |
% |
Certificate accounts |
|
129,011 |
|
|
|
2,049 |
|
1.59 |
% |
|
|
158,649 |
|
|
|
2,491 |
|
1.57 |
% |
Subordinated notes |
|
11,653 |
|
|
|
672 |
|
5.77 |
% |
|
|
11,611 |
|
|
|
672 |
|
5.79 |
% |
Borrowings |
|
27,273 |
|
|
|
878 |
|
3.22 |
% |
|
|
1 |
|
|
|
— |
|
— |
% |
Total interest-bearing
liabilities |
$ |
652,334 |
|
|
|
4,500 |
|
0.69 |
% |
|
$ |
630,763 |
|
|
|
3,954 |
|
0.63 |
% |
Net interest
income/spread |
|
|
$ |
35,295 |
|
3.69 |
% |
|
|
|
$ |
29,920 |
|
3.26 |
% |
Net interest margin |
|
|
|
|
3.89 |
% |
|
|
|
|
|
3.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning
assets to interest-bearing liabilities |
|
139 |
% |
|
|
|
|
|
|
138 |
% |
|
|
|
|
Noninterest-bearing
deposits |
$ |
190,113 |
|
|
|
|
|
|
$ |
178,535 |
|
|
|
|
|
Total deposits |
|
803,521 |
|
|
$ |
2,950 |
|
0.37 |
% |
|
|
797,686 |
|
|
$ |
3,282 |
|
0.41 |
% |
Total funding (1) |
|
842,447 |
|
|
|
4,500 |
|
0.53 |
% |
|
|
809,298 |
|
|
|
3,954 |
|
0.49 |
% |
(1) Total funding is the sum of average
interest-bearing liabilities and average noninterest-bearing
deposits. The cost of total funding is calculated as annualized
total interest expense divided by average total funding.
LOANS(Dollars in thousands, unaudited)
|
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
One-to-four family |
|
$ |
274,638 |
|
|
$ |
270,009 |
|
|
$ |
250,295 |
|
|
$ |
221,832 |
|
|
$ |
207,660 |
|
Home equity |
|
|
19,548 |
|
|
|
17,642 |
|
|
|
16,374 |
|
|
|
13,798 |
|
|
|
13,250 |
|
Commercial and multifamily |
|
|
313,358 |
|
|
|
315,677 |
|
|
|
307,462 |
|
|
|
279,892 |
|
|
|
278,175 |
|
Construction and land |
|
|
116,878 |
|
|
|
112,980 |
|
|
|
101,394 |
|
|
|
70,402 |
|
|
|
63,105 |
|
Total real estate loans |
|
|
724,422 |
|
|
|
716,308 |
|
|
|
675,525 |
|
|
|
585,924 |
|
|
|
562,190 |
|
Consumer Loans: |
|
|
|
|
|
|
|
|
|
|
Manufactured homes |
|
|
26,953 |
|
|
|
25,375 |
|
|
|
23,264 |
|
|
|
22,179 |
|
|
|
21,636 |
|
Floating homes |
|
|
74,443 |
|
|
|
69,968 |
|
|
|
66,573 |
|
|
|
59,784 |
|
|
|
59,268 |
|
Other consumer |
|
|
17,923 |
|
|
|
17,565 |
|
|
|
18,076 |
|
|
|
18,370 |
|
|
|
16,748 |
|
Total consumer loans |
|
|
119,319 |
|
|
|
112,908 |
|
|
|
107,913 |
|
|
|
100,333 |
|
|
|
97,652 |
|
Commercial business loans |
|
|
23,815 |
|
|
|
23,986 |
|
|
|
24,302 |
|
|
|
24,452 |
|
|
|
28,026 |
|
Total loans |
|
|
867,556 |
|
|
|
853,202 |
|
|
|
807,740 |
|
|
|
710,709 |
|
|
|
687,868 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
Premiums |
|
|
973 |
|
|
|
984 |
|
|
|
1,010 |
|
|
|
788 |
|
|
|
897 |
|
Deferred fees, net |
|
|
(2,548 |
) |
|
|
(2,739 |
) |
|
|
(2,672 |
) |
|
|
(2,012 |
) |
|
|
(2,367 |
) |
Allowance for loan losses |
|
|
(7,599 |
) |
|
|
(7,489 |
) |
|
|
(7,117 |
) |
|
|
(6,407 |
) |
|
|
(6,306 |
) |
Total loans held for portfolio, net |
|
$ |
858,382 |
|
|
$ |
843,958 |
|
|
$ |
798,961 |
|
|
$ |
703,078 |
|
|
$ |
680,092 |
|
DEPOSITS(Dollars in thousands, unaudited)
|
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
Noninterest-bearing |
|
$ |
173,196 |
|
|
$ |
192,275 |
|
|
$ |
186,609 |
|
|
$ |
208,768 |
|
|
$ |
190,466 |
|
Interest-bearing |
|
|
254,982 |
|
|
|
284,267 |
|
|
|
312,439 |
|
|
|
333,449 |
|
|
|
307,061 |
|
Savings |
|
|
95,641 |
|
|
|
99,602 |
|
|
|
103,311 |
|
|
|
106,217 |
|
|
|
103,401 |
|
Money market |
|
|
74,639 |
|
|
|
84,692 |
|
|
|
87,672 |
|
|
|
89,164 |
|
|
|
91,670 |
|
Certificates |
|
|
210,305 |
|
|
|
154,561 |
|
|
|
95,955 |
|
|
|
98,493 |
|
|
|
105,722 |
|
Total deposits |
|
$ |
808,763 |
|
|
$ |
815,397 |
|
|
$ |
785,986 |
|
|
$ |
836,091 |
|
|
$ |
798,320 |
|
CREDIT QUALITY DATA(Dollars in thousands,
unaudited)
|
|
At or For the Quarter Ended |
|
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
Nonaccrual loans |
|
$ |
2,855 |
|
|
$ |
2,378 |
|
|
$ |
4,381 |
|
|
$ |
4,474 |
|
|
$ |
5,130 |
|
Nonperforming TDRs |
|
|
103 |
|
|
|
108 |
|
|
|
128 |
|
|
|
273 |
|
|
|
422 |
|
Total nonperforming loans |
|
|
2,959 |
|
|
|
2,486 |
|
|
|
4,509 |
|
|
|
4,747 |
|
|
|
5,552 |
|
OREO and other repossessed
assets |
|
|
659 |
|
|
|
659 |
|
|
|
659 |
|
|
|
659 |
|
|
|
659 |
|
Total nonperforming assets |
|
$ |
3,618 |
|
|
$ |
3,145 |
|
|
$ |
5,168 |
|
|
$ |
5,406 |
|
|
$ |
6,211 |
|
Performing TDRs |
|
|
1,885 |
|
|
|
1,912 |
|
|
|
1,866 |
|
|
|
2,072 |
|
|
|
2,174 |
|
Net (charge-offs) recoveries
during the quarter |
|
|
(15 |
) |
|
|
(3 |
) |
|
|
110 |
|
|
|
(24 |
) |
|
|
(21 |
) |
Provision for loan losses
during the quarter |
|
|
125 |
|
|
|
375 |
|
|
|
600 |
|
|
|
125 |
|
|
|
— |
|
Allowance for loan losses |
|
|
7,599 |
|
|
|
7,489 |
|
|
|
7,117 |
|
|
|
6,407 |
|
|
|
6,306 |
|
Allowance for loan losses to
total loans |
|
|
0.88 |
% |
|
|
0.88 |
% |
|
|
0.88 |
% |
|
|
0.90 |
% |
|
|
0.92 |
% |
Allowance for loan losses to
total nonperforming loans |
|
|
256.84 |
% |
|
|
301.24 |
% |
|
|
157.84 |
% |
|
|
134.96 |
% |
|
|
113.58 |
% |
Nonperforming loans to total
loans |
|
|
0.34 |
% |
|
|
0.29 |
% |
|
|
0.56 |
% |
|
|
0.67 |
% |
|
|
0.81 |
% |
Nonperforming assets to total
assets |
|
|
0.37 |
% |
|
|
0.32 |
% |
|
|
0.55 |
% |
|
|
0.56 |
% |
|
|
0.68 |
% |
OTHER STATISTICS(Dollars in thousands,
unaudited)
|
|
At or For the Quarter Ended |
|
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
|
|
|
|
|
|
|
|
|
|
Total loans to total deposits |
|
|
107.27 |
% |
|
|
104.64 |
% |
|
|
102.77 |
% |
|
|
85.00 |
% |
|
|
86.16 |
% |
Noninterest-bearing deposits to total deposits |
|
|
21.41 |
% |
|
|
23.58 |
% |
|
|
23.74 |
% |
|
|
24.97 |
% |
|
|
23.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
Average total assets for the quarter |
|
$ |
996,042 |
|
|
$ |
969,254 |
|
|
$ |
920,984 |
|
|
$ |
931,094 |
|
|
$ |
916,261 |
|
Average total equity for the quarter |
|
$ |
97,119 |
|
|
$ |
95,244 |
|
|
$ |
94,397 |
|
|
$ |
94,497 |
|
|
$ |
93,569 |
|
Category: Earnings
Contact
Financial: |
|
|
Wes Ochs |
|
|
|
Executive Vice
President/CFO |
|
|
(206) 436-8587 |
|
|
|
|
|
|
|
Media: |
|
|
Laurie Stewart |
|
|
|
President/CEO |
|
|
(206) 436-1495 |
|
|
|
Sound Financial Bancorp (NASDAQ:SFBC)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
Sound Financial Bancorp (NASDAQ:SFBC)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024