Sound Financial Bancorp(SFBC) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $1.9 million, or$0.74 diluted earnings per share, compared to $1.2 million, or$0.45 diluted earnings per share in Q3 2024[1]. - Net income for 2024 was $4,640,000, a decrease of 37.9$7,439,000 in 2023[32]. - Basic earnings per share rose to $0.75 in Q4 2024, up from$0.47 in Q4 2023, marking a growth of 59.6%[36]. - The annualized return on average assets improved to 0.70% in Q4 2024, up from 0.46% in Q4 2023[34]. - The efficiency ratio improved to 75.25% in Q4 2024, down from 84.63% in Q4 2023, indicating better cost management[34]. Income and Expenses - Net interest income increased by $347 thousand, or 4.4$8.2 million for Q4 2024, up from $7.9 million in Q3 2024[6]. - Noninterest income decreased by$75 thousand, or 6.1%, to $1.2 million for the quarter ended December 31, 2024, compared to the previous quarter, but increased by$94 thousand, or 8.8%, compared to the same quarter in 2023[13]. - Noninterest expense decreased by $621 thousand, or 8.1$7.1 million for the quarter ended December 31, 2024, compared to the previous quarter, and decreased by $248 thousand, or 3.4$1.160 million, compared to $1.235 million for the quarter ended September 30, 2024[31]. Assets and Liabilities - Total assets decreased by$107.3 million, or 9.7%, to $993.6 million at December 31, 2024, from$1.10 billion at September 30, 2024[5]. - Total deposits decreased by $92.4 million, or 9.9$837.8 million at December 31, 2024, from $930.2 million at September 30, 2024[5]. - Cash and cash equivalents decreased by$105.3 million, or 70.7%, to $43.6 million at December 31, 2024, compared to the previous quarter, primarily due to higher deposit withdrawals[17]. - Total loans held-for-portfolio were$900.2 million at December 31, 2024, compared to $901.7 million at September 30, 2024, and$894.5 million at December 31, 2023[19]. - Total interest-earning assets increased to $1,044,507 thousand with a net interest income of$8,220 thousand, resulting in a net interest margin of 3.13% for the three months ended December 31, 2024[39]. Credit Quality - Nonperforming loans decreased by $998 thousand, or 11.8$7.5 million at December 31, 2024, from $8.5 million at September 30, 2024[5]. - The allowance for credit losses on loans to total loans outstanding was 0.94$13 thousand, compared to $14 thousand for the third quarter of 2024, and$15 thousand for the fourth quarter of 2023[21]. - Total nonperforming loans decreased to $7,491,000 from$9,053,000 year-over-year, representing a decline of 17.3%[46]. - Nonperforming loans to total loans ratio improved to 0.83% from 1.01% year-over-year[46]. Deposits and Funding - The loans-to-deposits ratio was 108% at December 31, 2024, compared to 97% at September 30, 2024[5]. - Noninterest-bearing deposits increased by $2.8 million, or 2.2$132.5 million at December 31, 2024, compared to $129.7 million at September 30, 2024[24]. - Total deposits amounted to$926,734 thousand, with an average interest expense of $6,017 thousand, leading to a cost of total funding of 2.68$25.0 million at December 31, 2024, down from $40.0 million at September 30, 2024[25].