Sound Financial Bancorp, Inc. reported positive Q4 2024 results with increased net interest income and reduced expenses
From GlobeNewswire: 2025-01-29 18:41:27
Sound Financial Bancorp, Inc. reported a net income of $1.9 million for Q4 2024, with diluted earnings per share at $0.74. The company’s Board of Directors declared a cash dividend of $0.19 per share. Total assets decreased by 9.7% to $993.6 million. Net interest income increased by 4.4% to $8.2 million. Loans held-for-portfolio decreased by 0.2% to $900.2 million. Nonperforming loans decreased by 11.8% to $7.5 million. The Bank ended the year with a balance sheet strategy that reduced its asset size below $1 billion, providing more operational flexibility and cost savings for 2025.
Total deposits decreased by 9.9% to $837.8 million, with noninterest-bearing deposits increasing by 2.2% to $132.5 million. The Bank maintained capital levels above regulatory requirements and was categorized as “well-capitalized.” The company’s President and CEO, Laurie Stewart, highlighted positive results for the Bank’s year-end, with a 15-basis-point increase in net interest margin and a 16 basis point decrease in deposit costs. Wes Ochs, Executive Vice President and CFO, emphasized the importance of reducing funding costs and controlling expenses to maintain momentum in 2025.
Net interest income increased by 4.4% to $8.2 million for Q4 2024, driven by lower funding costs and increased average yield on loans and investments. Interest income on loans increased by 1.5% to $13.1 million. Interest income on investments remained stable, while interest income on interest-bearing cash decreased by 16.3%. Interest expense decreased by 6.4% to $6.5 million, resulting in a net interest margin of 3.13% for Q4 2024. The Bank’s provision for credit losses was $14 thousand.
Sound Financial Bancorp’s total noninterest income decreased by 6.1% to $1.2 million for Q4 2024, with a $75 thousand decrease from the previous quarter. Salaries and benefits decreased by 12.1% to $3.9 million, while operations expenses decreased by 13.6% to $1.3 million. The Bank’s noninterest expense decreased by 8.1% to $7.1 million. Total nonperforming loans decreased by 11.8% to $7.5 million. The Bank’s allowance for credit losses on loans was 0.94% of total loans outstanding.
In terms of balance sheet and capital management, Sound Financial Bancorp’s assets decreased to $993.6 million, with total loans held-for-portfolio at $891.7 million. Stockholders’ equity increased by 1.4% to $103.7 million. The Bank’s capital levels remained above regulatory requirements, with a book value per share of $40.42. The Bank ended the year with a strong balance sheet strategy to provide operational flexibility and cost savings for 2025.
Read more at GlobeNewswire: Sound Financial Bancorp, Inc. Q4 2024 Results