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Sound Financial Bancorp(SFBC) - 2024 Q2 - Quarterly Report
SFBCSound Financial Bancorp(SFBC)2024-08-12 22:14

Financial Performance - Total interest income for Q2 2024 was 14,039,000,anincreaseof13.114,039,000, an increase of 13.1% from 12,412,000 in Q2 2023[6] - Net income for Q2 2024 decreased to 795,000,down72.5795,000, down 72.5% from 2,892,000 in Q2 2023[6] - Basic earnings per share for Q2 2024 was 0.31,downfrom0.31, down from 1.12 in Q2 2023, representing a decline of 72.3%[6] - The company reported comprehensive income of 796,000forQ22024,comparedto796,000 for Q2 2024, compared to 2,832,000 in Q2 2023[8] - Year-to-date net income for 2024 decreased by 3.5million,or69.13.5 million, or 69.1%, to 1.6 million, compared to 5.1millioninthesameperiodof2023[123]−NetinterestincomeforthethreemonthsendedJune30,2024,was5.1 million in the same period of 2023[123] - Net interest income for the three months ended June 30, 2024, was 7.448 million, compared to 8.744millionforthesameperiodin2023[117]−Netinterestincomedecreasedby8.744 million for the same period in 2023[117] - Net interest income decreased by 3.2 million, or 17.7%, to 14.9millionforthesixmonthsendedJune30,2024,from14.9 million for the six months ended June 30, 2024, from 18.1 million for the same period in 2023[128] Noninterest Income and Expenses - Noninterest income for the first half of 2024 was 2,258,000,adecreaseof21.02,258,000, a decrease of 21.0% compared to 2,858,000 in the same period of 2023[6] - Noninterest income decreased by 729thousand,or38.6729 thousand, or 38.6%, to 1.2 million for the three months ended June 30, 2024, compared to 1.9millionforthesameperiodin2023[131]−Totalnoninterestexpenseforthefirsthalfof2024was1.9 million for the same period in 2023[131] - Total noninterest expense for the first half of 2024 was 15,394,000, slightly up from 15,112,000inthefirsthalfof2023[6]−TotalnoninterestexpenseforthethreemonthsendedJune30,2024,was15,112,000 in the first half of 2023[6] - Total noninterest expense for the three months ended June 30, 2024, was 7,737,000, an increase of 3.2% from 7,497,000inthesameperiodlastyear[6]DividendsandStockholderEquity−Cashdividendspaidoncommonstockwere7,497,000 in the same period last year[6] Dividends and Stockholder Equity - Cash dividends paid on common stock were 0.19 per share for Q2 2024, totaling 486,000[10]−CashdividendspaidoncommonstockforQ22024were486,000[10] - Cash dividends paid on common stock for Q2 2024 were 972,000, compared to 936,000inQ22023,reflectingaslightincrease[14]−Thetotalstockholders′equityincreasedto936,000 in Q2 2023, reflecting a slight increase[14] - The total stockholders' equity increased to 101,347,000 as of June 30, 2024, up from 100,654,000attheendof2023[10]−Stockholders′equityincreasedto100,654,000 at the end of 2023[10] - Stockholders' equity increased to 101.3 million at June 30, 2024, from 100.7millionatDecember31,2023,supportedbynetincomeof100.7 million at December 31, 2023, supported by net income of 1.6 million[138] Loans and Credit Quality - Total loans held-for-portfolio amounted to 891,124thousand,adecreaseof0.4891,124 thousand, a decrease of 0.4% from 896,160 thousand on December 31, 2023[28] - The allowance for credit losses on loans was 8,493thousandasofJune30,2024,downfrom8,493 thousand as of June 30, 2024, down from 8,760 thousand at the end of 2023, indicating a reduction of 3.0%[30] - The company reported three collateral dependent consumer mortgage loans in the process of foreclosure, totaling 457thousand[29]−Thecompanyregularlyreviewsitsloanportfoliotoassesscreditqualityindicatorsandclassifyloansappropriately,withadditionalreportingonproblemloanseverythreemonths[40]−TherewerenoloansclassifiedasdoubtfulorlossasofJune30,2024,indicatingstrongcreditqualitymanagement[41]CashFlowandFinancingActivities−Netcashprovidedbyfinancingactivitieswas457 thousand[29] - The company regularly reviews its loan portfolio to assess credit quality indicators and classify loans appropriately, with additional reporting on problem loans every three months[40] - There were no loans classified as doubtful or loss as of June 30, 2024, indicating strong credit quality management[41] Cash Flow and Financing Activities - Net cash provided by financing activities was 79,217,000 for the six months ended June 30, 2023, compared to 27,746,000forthesameperiodin2022,showingasubstantialincreaseofabout18527,746,000 for the same period in 2022, showing a substantial increase of about 185%[14] - The company reported a net cash increase of 85,421,000 for the six months ended June 30, 2024, compared to 42,333,000forthesameperiodin2023[14]−CashandcashequivalentsattheendofQ22024stoodat42,333,000 for the same period in 2023[14] - Cash and cash equivalents at the end of Q2 2024 stood at 135,111,000, up from 100,169,000attheendofQ22023[14]SecuritiesandInvestments−Thetotalfairvalueofthesecuritiesportfoliowas100,169,000 at the end of Q2 2023[14] Securities and Investments - The total fair value of the securities portfolio was 9.7 million, down from 10.1millionatDecember31,2023[26]−Theamortizedcostandfairvalueofavailable−for−sale(AFS)securitieswere10.1 million at December 31, 2023[26] - The amortized cost and fair value of available-for-sale (AFS) securities were 9.325 million and 7.996million,respectively,withgrossunrealizedlossesof7.996 million, respectively, with gross unrealized losses of 1.348 million[20] - The company did not recognize any provision for credit losses on investment securities during the six months ended June 30, 2024, as declines in fair value were not attributable to credit quality[26] Regulatory Compliance and Accounting Standards - The company is evaluating the impact of the adoption of ASU 2023-07 on the footnotes to its consolidated financial statements, effective for fiscal years beginning after December 15, 2023[18] - The company does not expect the adoption of ASU 2023-09 to have a material impact on the footnotes to its consolidated financial statements[19] - The Company implemented the CECL model starting January 1, 2023, and is phasing in the full effect of CECL on regulatory capital over a three-year transition period[143]