Sound Financial Bancorp, Inc., the bank holding company for Sound Community Bank, reported its financial results for the third quarter and nine months ended September 30, 2024. The company experienced a notable increase in total assets, which rose by $105.7 million, or 10.6%, to $1.10 billion compared to $995.2 million at the end of 2023. Cash and cash equivalents saw a significant increase of $99.2 million, or 199.7%, reaching $148.9 million. Total deposits also increased by $103.7 million, or 12.5%, to $930.2 million, driven primarily by a return of reciprocal deposits and growth in money market accounts.

In terms of revenue, total interest income for the three months ended September 30, 2024, was $14.8 million, an increase of $2.2 million, or 17.0%, from the same period in 2023. However, net interest income decreased to $7.9 million, down $295,000, or 3.6%, compared to the prior year. For the nine months ended September 30, 2024, net interest income was $22.8 million, a decrease of $3.5 million, or 13.3%, from $26.3 million in the same period of 2023. The decline in net interest income was attributed to increased interest expenses, which rose significantly due to higher rates on deposits.

Net income for the third quarter of 2024 was $1.2 million, a slight decrease of $15,000, or 1.3%, from $1.2 million in the same quarter of 2023. Year-to-date net income was reported at $2.7 million, down $3.5 million, or 56.3%, from $6.2 million in the previous year. The decrease in net income was influenced by lower net interest income and a decline in noninterest income, which totaled $3.5 million for the nine months ended September 30, 2024, down 11.3% from $3.9 million in 2023.

The company’s loan portfolio showed modest growth, with total loans held-for-portfolio increasing by $7.4 million, or 0.8%, to $893.1 million. Commercial and multifamily loans were a significant contributor, rising by $43.3 million, or 13.7%. However, nonaccrual loans increased substantially to $8.5 million from $3.6 million at the end of 2023, reflecting a rise in nonperforming assets.

In terms of strategic developments, Sound Financial Bancorp announced a quarterly cash dividend of $0.19 per common share, payable on November 26, 2024. The company also initiated a stock repurchase program in January 2024, authorizing the purchase of up to $1.5 million of its common stock over a 12-month period. The Community Bank Leverage Ratio (CBLR) for the bank was reported at 10.40%, exceeding the minimum requirement.