Sound Financial Bancorp, Inc. (SFBC): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le plan stratégique de Sound Financial Bancorp, Inc. (SFBC), une puissance bancaire régionale dynamique qui transforme les services financiers traditionnels à travers des approches innovantes. Cette toile complète du modèle commercial révèle comment SFBC navigue stratégiquement dans le paysage bancaire complexe, tirant parti de l'expertise locale, des infrastructures numériques de pointe et des relations client personnalisées pour fournir des solutions financières exceptionnelles dans les divers segments de marché de l'État de Washington.

Sound Financial Bancorp, Inc. (SFBC) - Modèle commercial: Partenariats clés

Banques communautaires locales et coopératives de crédit

En 2024, Sound Financial Bancorp maintient des partenariats stratégiques avec des institutions financières locales dans la région du Pacifique Nord-Ouest.

Type de partenaire	Nombre de partenariats	Couverture géographique
Banques communautaires	7	État de Washington
Coopératives de crédit	12	Western Washington

Fournisseurs de services financiers régionaux

Sound Financial Bancorp collabore avec des fournisseurs de services financiers régionaux spécialisés.

• Partenaires de réseau de prêts commerciaux
• Collaborateurs de services financiers pour les petites entreprises
• Fournisseurs de services marchands

Vendeurs technologiques pour les logiciels bancaires

Partenaire technologique	Solution logicielle	Investissement annuel
Jack Henry & Associés	Plateforme bancaire de base	$425,000
Finerv	Solutions bancaires numériques	$275,000

Partenaires de produits d'assurance et d'investissement

Sound Financial Bancorp entretient des relations stratégiques avec les sociétés d'assurance et d'investissement.

• Partenaires d'assurance-vie: 3 fournisseurs régionaux
• Sociétés de gestion des investissements: 5 sociétés régionales de gestion de patrimoine
• Collaborateurs de la planification de la retraite: 4 réseaux de conseil financier spécialisés

Consultants en conformité réglementaire

Zone de conformité	Cabinet de conseil	Frais de consultation annuels
Règlements bancaires	Wipfli LLP	$185,000
Conformité à la cybersécurité	RSM US LLP	$145,000

Sound Financial Bancorp, Inc. (SFBC) - Modèle d'entreprise: Activités clés

Services bancaires commerciaux et grand public

Au quatrième trimestre 2023, Sound Financial Bancorp, Inc. a déclaré un actif total de 623,4 millions de dollars avec des prêts totaux de 455,2 millions de dollars. La banque exploite 5 succursales à service complet situées dans l'État de Washington.

Catégorie de service bancaire	Volume total (2023)
Portefeuille de prêts commerciaux	287,6 millions de dollars
Portefeuille de prêts à la consommation	167,6 millions de dollars
Originations totales du prêt	42,3 millions de dollars

Opérations de dépôt et de prêt

Les dépôts totaux pour Sound Financial Bancorp ont atteint 542,1 millions de dollars en 2023, avec une marge d'intérêt nette de 3,62%.

• Comptes chèques: 186,5 millions de dollars
• Comptes d'épargne: 214,3 millions de dollars
• Comptes de marché monétaire: 141,3 millions de dollars

Conseil financier et gestion de la patrimoine

Les actifs de gestion de patrimoine sous administration ont totalisé 124,6 millions de dollars en 2023.

Type de service	Revenus générés
Services de conseil en investissement	3,2 millions de dollars
Planification de la retraite	1,7 million de dollars

Développement de la plate-forme bancaire numérique

Les transactions bancaires numériques ont augmenté de 37% en 2023, les utilisateurs de la banque mobile atteignant 68% de la clientèle totale.

• Utilisateurs de la banque mobile: 22 400
• Utilisateurs bancaires en ligne: 31 600
• Volume de transaction numérique: 214,5 millions de dollars

Gestion des risques et surveillance de la conformité

L'allocation budgétaire de la conformité pour 2023 était de 2,4 millions de dollars, ce qui représente 1,2% du total des dépenses opérationnelles.

Zone de conformité	Surveillance des dépenses
Conformité réglementaire	1,2 million de dollars
Anti-blanchiment	$680,000
Cybersécurité	$520,000

Sound Financial Bancorp, Inc. (SFBC) - Modèle commercial: Ressources clés

Réseau bancaire régional

Sound Financial Bancorp fonctionne 10 emplacements de succursales à service complet exclusivement dans l'État de Washington, principalement concentré dans la région du son de Puget.

Succursales	Concentration géographique
Total des succursales	10
Région primaire	Puget Sound, Washington

Professionnaires de gestion et financière

À partir du rapport annuel en 2023, Sound Financial Bancorp maintient 47 employés au total.

• Équipe de direction senior: 5 membres clés du leadership
• Conseil d'administration: 7 membres
• Expérience de gestion moyenne: plus de 15 ans dans la banque

Infrastructure bancaire numérique

Métriques bancaires numériques	2023 données
Utilisateurs de la banque en ligne	8,752
Téléchargements d'applications bancaires mobiles	5,413

Réserves de capitaux

Capital total au quatrième trimestre 2023: 118,4 millions de dollars

Métriques capitales	Montant
Ratio de capital de niveau 1	15.2%
Ratio de capital total basé sur le risque	16.5%

Gestion de la relation client

Base de clientèle totale: 12 345 comptes actifs

• Comptes d'entreprise: 3 215
• Comptes de chèques personnels: 7 856
• Comptes d'épargne: 1 274

Sound Financial Bancorp, Inc. (SFBC) - Modèle d'entreprise: propositions de valeur

Services bancaires personnalisés pour les communautés locales

Au quatrième trimestre 2023, Sound Financial Bancorp dessert 12 comtés locaux dans l'État de Washington avec un actif total de 1,07 milliard de dollars. La banque maintient 8 succursales à service complet ciblant les besoins financiers spécifiques à la communauté.

Catégorie de service	Total des clients	Pénétration du marché
Banque personnelle	22,647	68% du marché local
Banque d'affaires	3,412	42% du marché des entreprises régionales

Taux d'intérêt concurrentiels sur les prêts et les dépôts

Taux d'intérêt en janvier 2024:

• Comptes d'épargne personnels: 4,25% apy
• Comptes de chèques commerciaux: 3,75% apy
• Taux hypothécaires personnels: à partir de 6,85%
• Prêts aux petites entreprises: 7,25% - 9,50%

Solutions financières complètes

Catégorie de produits	Nombre de produits	Revenus annuels
Produits bancaires personnels	17	42,3 millions de dollars
Produits bancaires d'entreprise	12	28,6 millions de dollars

Service client réactif et axé sur les relations

Métriques du service client pour 2023:

• Temps de réponse moyen: 12 minutes
• Taux de satisfaction client: 94,2%
• Taux de rétention: 87,5%

Options bancaires numériques et en personne pratique

Statistiques de la banque numérique pour 2023:

Service numérique	Total utilisateurs	Volume de transaction annuel
Banque mobile	18,234	2,4 millions de transactions
Banque en ligne	21,567	3,1 millions de transactions

Sound Financial Bancorp, Inc. (SFBC) - Modèle d'entreprise: relations clients

Gestion des relations bancaires personnelles

Depuis le quatrième trimestre 2023, Sound Financial Bancorp, Inc. a maintenu 3 247 comptes bancaires personnels actifs avec une valeur de relation moyenne de 87 500 $ par client.

Segment de clientèle	Nombre de comptes	Solde moyen du compte
Vérification personnelle	1,842	$42,300
Économies personnelles	1,405	$65,700

Banquiers de relations dédiés

Sound Financial emploie 27 banquiers de relations dédiés dans ses régions opérationnelles.

• Ratio moyen client / banqueur: 120: 1
• Les banquiers de relations servent les clients avec des soldes supérieurs à 100 000 $
• Taux de rétention de la clientèle annuelle par le biais de la banque dédiée: 87,3%

Assistance bancaire en ligne et mobile

Statistiques de la plate-forme bancaire numérique pour 2023:

Service numérique	Taux d'adoption des utilisateurs	Utilisateurs actifs mensuels
Application bancaire mobile	62%	2,013
Portail bancaire en ligne	78%	2,536

Engagement communautaire et événements locaux

Mesures d'interaction communautaire pour 2023:

• Total des événements communautaires organisés: 24
• Ateliers de littératie financière menés: 12
• Participants à l'événement communautaire total: 1 156
• Investissements de parrainage local: 87 500 $

Conseils financiers sur mesure et consultation

Répartition des services de consultation pour 2023:

Type de consultation	Nombre de sessions	Durée moyenne de la session
Planification de la retraite	376	1,2 heures
Stratégie d'investissement	289	1,5 heures
Gestion de la richesse	214	2,1 heures

Sound Financial Bancorp, Inc. (SFBC) - Modèle d'entreprise: canaux

Emplacements de branche physiques

En 2024, Sound Financial Bancorp, Inc. exploite 7 emplacements de succursales physiques dans l'État de Washington, concentrés dans la région du son de Puget.

Type d'emplacement	Nombre de branches	Couverture de service
Branches à service complet	5	Services bancaires complets
Succursales de service limitées	2	Services de transaction de base

Plateforme bancaire en ligne

La plate-forme numérique de la banque prend en charge 98.6% des transactions bancaires standard avec les capacités de gestion des comptes en temps réel.

• Interface Web sécurisée
• Suivi du solde du compte
• Transferts de fonds
• Services de paiement de factures

Application bancaire mobile

Statistiques de téléchargement d'applications mobiles au T1 2024:

Plate-forme	Téléchargements totaux	Utilisateurs actifs
ios	12,453	8,976
Androïde	9,872	7,245

Services bancaires téléphoniques

Support client 24/7 avec Temps de réponse moyen de 2,5 minutes.

Type de service	Volume d'appel quotidien	Taux de résolution
Enquêtes de compte	387	96.3%
Assistance des transactions	212	94.7%

Réseau ATM

Le réseau ATM total comprend 15 machines propriétaires et la participation à 47 emplacements de réseau partagé.

Type de guichet automatique	Nombre de machines	Volume de transaction mensuel
MAT propriétaires	15	22,567
ATM du réseau partagé	47	36,982

Sound Financial Bancorp, Inc. (SFBC) - Modèle d'entreprise: segments de clientèle

Petites et moyennes entreprises

En 2024, Sound Financial Bancorp dessert environ 375 petites et moyennes entreprises de la région de l'État de Washington. La taille moyenne des prêts commerciaux est de 487 000 $.

Segment d'entreprise	Nombre de clients	Montant moyen du prêt
Commerces de détail	127	$392,500
Services professionnels	98	$521,000
Fabrication	83	$612,000
Entreprises technologiques	67	$675,000

Consommateurs individuels locaux

Sound Financial Bancorp dessert 12 450 comptes de consommation individuels avec un solde de dépôt moyen de 87 300 $.

• Comptes de chèques personnels: 7 200 clients
• Comptes d'épargne personnels: 5 250 clients

Investisseurs immobiliers résidentiels et commerciaux

La banque gère 624 portefeuilles d'investissement immobilier d'une valeur totale de 287,6 millions de dollars.

Type immobilier	Nombre d'investisseurs	Valeur totale du portefeuille
Investissement résidentiel	412	163,4 millions de dollars
Immobilier commercial	212	124,2 millions de dollars

Individus à haute nette

Sound Financial Bancorp dessert 287 clients individuels à haute noue avec un actif total sous gestion de 94,3 millions de dollars.

• Valeur nette moyenne du client: 3,2 millions de dollars
• Comptes de gestion de la patrimoine: 287
• Portefeuille d'investissement moyen: 328 000 $

Organisations à but non lucratif dans l'État de Washington

La banque soutient 46 organisations à but non lucratif avec des services bancaires totaux d'une valeur de 22,7 millions de dollars.

Secteur à but non lucratif	Nombre d'organisations	Services bancaires totaux
Éducation	18	9,4 millions de dollars
Soins de santé	12	6,8 millions de dollars
Services communautaires	16	6,5 millions de dollars

Sound Financial Bancorp, Inc. (SFBC) - Modèle d'entreprise: Structure des coûts

Salaires et avantages sociaux des employés

Depuis la dernière période d'information financière, Sound Financial Bancorp, Inc. a déclaré des frais totaux de rémunération des employés de 12 435 000 $. La ventilation comprend:

Catégorie de dépenses	Montant ($)
Salaires de base	8,675,000
Assurance maladie	1,950,000
Prestations de retraite	1,810,000

Maintenance de technologie et d'infrastructure

Les coûts des infrastructures technologiques pour le Sound Financial Bancorp ont totalisé 3 275 000 $, avec l'allocation suivante:

• Maintenance des systèmes informatiques: 1 425 000 $
• Investissements en cybersécurité: 985 000 $
• Licence de logiciel: 865 000 $

Frais de conformité réglementaire

Les dépenses liées à la conformité s'élevaient à 2 650 000 $, notamment:

Zone de conformité	Coût ($)
Représentation juridique et réglementaire	1,275,000
Coûts d'audit et d'examen	875,000
Formation de la conformité	500,000

Coûts d'exploitation de la succursale

Dépenses totales de fonctionnement de la succursale: 4 125 000 $, distribués comme suit:

• Loyer et installations: 2 350 000 $
• Utilitaires: 675 000 $
• Entretien et réparations: 1 100 000 $

Frais de marketing et d'acquisition des clients

Les dépenses de marketing ont totalisé 1 875 000 $, avec l'allocation suivante:

Canal de marketing	Dépenses ($)
Marketing numérique	875,000
Impression et médias traditionnels	525,000
Programmes d'acquisition de clients	475,000

Sound Financial Bancorp, Inc. (SFBC) - Modèle d'entreprise: Strots de revenus

Intérêt des prêts

Au quatrième trimestre 2023, Sound Financial Bancorp, Inc. a déclaré un revenu total d'intérêts de 14,3 millions de dollars, avec une ventilation comme suit:

Catégorie de prêt	Revenu des intérêts ($)
Prêts commerciaux	6,850,000
Hypothèques résidentielles	4,520,000
Prêts à la consommation	2,930,000

Frais des services bancaires

Les revenus des frais de service pour 2023 ont totalisé 3,2 millions de dollars, notamment:

• Frais de maintenance du compte: 1 100 000 $
• Frais de découvert: 750 000 $
• Frais de transaction ATM: 450 000 $
• Frais de transfert de fil: 350 000 $
• Autres frais de service: 550 000 $

Commissions d'investissement et de gestion de la patrimoine

Les revenus de gestion de la patrimoine pour 2023 étaient de 2,7 millions de dollars, avec la composition suivante:

Service	Revenus de commission ($)
Gestion des actifs	1,450,000
Avis financier	850,000
Ventes de produits d'investissement	400,000

Revenus de prêts hypothécaires

Les prêts hypothécaires ont généré 5,6 millions de dollars de revenus pour 2023:

• Frais d'origine: 2 300 000 $
• Frais de service hypothécaire: 1 800 000 $
• Ventes du marché secondaire: 1 500 000 $

Services de gestion du Trésor

Les services de gestion du Trésor ont contribué 1,5 million de dollars de revenus pour 2023:

Type de service	Revenus ($)
Gestion des espèces	650,000
Traitement des paiements	450,000
Services de liquidité	400,000

Sound Financial Bancorp, Inc. (SFBC) - Canvas Business Model: Value Propositions

You're looking at how Sound Financial Bancorp, Inc. (SFBC) creates value for its clients, which is deeply rooted in its identity as a community bank serving Western Washington. This isn't about national scale; it's about local presence and tailored service.

Relationship-focused community banking in Western Washington

The core value is the local, relationship-based approach. This is supported by the bank's scale and stability within its operating region. As of September 30, 2025, Sound Financial Bancorp, Inc. maintained total assets of approximately $1.06 billion. The bank's commitment to its deposit base, a key relationship metric, saw total deposits at $910.3 million at the end of the first quarter of 2025. The focus on relationship lending is evident in the loans-to-deposits ratio, which stood at 101% at June 30, 2025, showing active deployment of local funds. This local focus also translates to shareholder return, with a declared cash dividend of $0.19 per share for the third quarter of 2025.

Full suite of commercial and consumer lending solutions

Sound Financial Bancorp, Inc. offers a comprehensive set of credit products to individuals and businesses. The loan portfolio reflects this breadth. For the quarter ended June 30, 2025, loans held-for-portfolio increased 2.0% quarter-over-quarter to $904.3 million. The average yield on total loans was strong at 6.14% for the second quarter of 2025, up from 5.56% in the second quarter of 2024, showing success in originating higher-rate loans. The bank's credit quality focus is a value proposition in itself; nonperforming loans to total loans was just 0.30% at September 30, 2025.

Here are some key financial metrics underpinning the lending and service value:

Metric	Value as of Late 2025	Period End Date
Total Assets	$1.06 billion	September 30, 2025
Loans Held-for-Portfolio	$904.3 million	June 30, 2025
Net Interest Margin (NIM)	3.48%	Year-over-Year as of Q3 2025
Average Loan Yield	6.14%	Q2 2025
Nonperforming Loans to Total Loans	0.30%	September 30, 2025

Local decision-making and personalized customer service

The ability for local teams to make credit decisions quickly is a direct benefit of the community bank structure. This is supported by the management commentary noting that the commercial lending group maintains a solid pipeline to support continued near-term growth following the resolution of large nonaccrual loans. The bank's focus on maintaining strong credit quality, evidenced by the allowance for credit losses on loans to total nonperforming loans ratio of 315.20% at September 30, 2025, suggests prudent, relationship-aware underwriting. You get decisions made by people who know the local market.

Specialized lending products like floating home loans

Sound Financial Bancorp, Inc. actively supports niche markets within Western Washington. The bank offers specialized products including manufactured home loans and floating home loans. While the bank is focused on optimizing its portfolio, the average balances for these specific loan types, including floating home loans, remained relatively flat from the fourth quarter of 2024 into the first quarter of 2025, indicating a stable, maintained offering rather than a retreat from the segment.

Wealth advisory and trust services for high-net-worth clients

The value proposition extends beyond traditional lending to wealth management. This service line contributes to noninterest income. For the third quarter of 2025, noninterest income increased over the second quarter of 2025 primarily due to higher trust and investment management fees. This fee income stream directly reflects the engagement with high-net-worth clients needing advisory services.

The components driving noninterest income in Q3 2025 included:

• Higher trust and investment management fees
• Capital markets revenue
• Mortgage banking revenue
• Other revenue

Sound Financial Bancorp, Inc. (SFBC) - Canvas Business Model: Customer Relationships

You're looking at how Sound Financial Bancorp, Inc. keeps its clients close, which is key since they are focused on relationship banking to drive loan growth. The core of this is making sure the service matches the client's need, whether that's a complex commercial deal or a simple mobile deposit.

Dedicated relationship managers for commercial clients

The strategy here is clearly leaning into commercial and multifamily real estate, which saw loans increase to $371.5 million in 2024, showing a clear pipeline focus heading into year-end 2025. This type of lending demands a dedicated banker, which is why the firm emphasizes its 'robust commercial pipeline' as of year-end 2025. The financial health supporting this relationship focus is evident in the Q3 2025 results, with total assets at $1.06 billion and a net income of $1.7 million for the quarter.

Personalized, high-touch service at branch locations

Sound Community Bank maintains a physical presence across Washington state to support this high-touch model. They rely on this local footprint to deliver personalized service, even as digital use rises. This physical network is a key resource for relationship building.

Service Component	Count/Metric as of Early 2025
Full-Service Branches	7 locations
Loan Production Offices (LPO)	1 location
Headquarters Location	Seattle, Washington

The bank declared a cash dividend of $0.19 per share in October 2025, signaling stability to its local shareholder base.

Self-service options via digital and mobile banking

Sound Financial Bancorp, Inc. is investing in technology to enhance operational efficiencies, which indirectly supports better service delivery for all clients. While the firm stresses relationship banking, it acknowledges the shift, noting the increased use of online and mobile banking services. This dual approach helps manage costs while meeting modern expectations; for instance, total noninterest expense remained relatively stable at $7.7 million across Q3 2025, Q2 2025, and Q3 2024, despite technology investments.

• Diluted Earnings Per Share (Q3 2025): $0.66
• Net Interest Margin (Year-over-Year Improvement as of Q3 2025): 50 basis points
• Total Shares Outstanding (as of March 31, 2025): 2,566,069

Community engagement to foster local loyalty

The firm explicitly states its values include giving back to its communities, both financially and through employee volunteer service. This engagement is a direct lever for fostering local loyalty, which is critical for a regional bank competing against larger national players. The focus on local relationships is a stated strength, supported by employee stock ownership plans (ESOPs) which align employee incentives with client relationship growth.

Advisory model for wealth and trust services

The bank's structure includes offerings for wealth management and financial planning, aiming to address the full spectrum of client needs-from consumer and business lending to saving for retirement. The CEO noted efforts to build 'full banking relationships by addressing both the lending and deposit needs of our consumer and business clients,' which encompasses advisory services. While specific 2025 Assets Under Management (AUM) for wealth services aren't public, the overall health of the bank, with a Q3 2025 net income of $1.7 million, provides the capital base for these specialized service investments.

The commitment to the relationship model is clear: focus on the total relationship to fund loan growth. Finance: draft 13-week cash view by Friday.

Sound Financial Bancorp, Inc. (SFBC) - Canvas Business Model: Channels

You're looking at how Sound Financial Bancorp, Inc. gets its services to clients as of late 2025. It's a mix of physical presence in the Puget Sound area and digital tools.

The physical footprint, anchored by Sound Community Bank, is concentrated in specific Washington cities. You can see the breakdown of their main access points here:

Channel Type	Location Count (as of late 2025 data)	Specific Locations Mentioned
Full-Service Branch Network	7	Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles, Port Ludlow, University Place
Loan Production Office (LPO)	1	Madison Park neighborhood of Seattle

The bank's total assets stood at $1.06 billion at September 30, 2025.

For digital access, Sound Financial Bancorp, Inc. supports its client base through:

• Digital banking platforms (online and mobile).

The direct service teams focus on specific lending needs:

• Direct commercial lending team for business clients.
• Mortgage origination handled via the LPO and likely through the branch network, as Sound Community Bank is a Fannie Mae Approved Lender and Seller/Servicer.

Consumer convenience is supported by:

• ATM network access. (Specific network size not publicly detailed in late 2025 reports found.)

Finance: draft 13-week cash view by Friday.

Sound Financial Bancorp, Inc. (SFBC) - Canvas Business Model: Customer Segments

You're looking at the core groups Sound Financial Bancorp, Inc. serves across Western Washington, which is their primary operating area, headquartered in University Place. The bank emphasizes relationship banking to support local economic development.

Individuals and consumers in the Puget Sound region

These are the folks who keep the lights on with their deposit accounts and take out personal loans. They use checking, savings, money market accounts, and certificates of deposit to manage their money. At the end of the second quarter of 2025, total deposits stood at $899.5 million.

• Geographic focus is the Puget Sound region.
• The bank had approximately 243 holders of record for its common stock as of March 13, 2025.
• The quarterly cash dividend declared in mid-2025 was $0.19 per share.

Small to mid-sized businesses (SMBs) and commercial clients

Sound Financial Bancorp, Inc. provides a full spectrum of lending solutions to these businesses. They focus on building full banking relationships by addressing both lending and deposit needs.

The total loan portfolio, or loans held-for-portfolio, was $904.3 million as of June 30, 2025. The loans-to-deposits ratio was 101% at that same date, showing they are actively lending out the funds they take in.

Metric	Amount / Date
Total Assets (Q3 2025)	$1.06 billion
Loans Held-for-Portfolio (Q2 2025)	$904.3 million
Total Deposits (Q2 2025)	$899.5 million
Net Interest Margin (Q3 2025)	3.48%

Commercial real estate investors and developers

This segment is a key focus, as the bank intends to prudently maintain the percentage of assets in higher-yielding commercial and multifamily real estate loans. They offer commercial real estate financing and construction loans secured by commercial and multifamily real estate.

The average yield on total loans was 5.69% for the quarter ended March 31, 2025.

Wealth management and trust services clients

The suite of solutions for clients seeking investment management and retirement planning support includes wealth advisory and trust services. The bank also offers treasury and cash management, plus merchant services to capture more of each client's banking relationship.

Specialized consumer loan borrowers (e.g., manufactured homes)

The bank continues to focus on specific consumer products where they have long experience. These loans are part of their overall consumer lending offerings.

• Secured and unsecured consumer loans include new and used manufactured homes.
• Other consumer loans include those secured by floating homes, automobiles, boats, and recreational vehicles.

Finance: draft the loan portfolio breakdown by category for the Q4 2025 filing by November 15.

Sound Financial Bancorp, Inc. (SFBC) - Canvas Business Model: Cost Structure

The cost structure for Sound Financial Bancorp, Inc. (SFBC) is heavily influenced by funding costs and operating expenses associated with maintaining its branch network and technology infrastructure. You see this clearly when looking at the core components of their noninterest expense and interest expense.

Interest expense on deposits and borrowings forms a significant portion of the overall cost base. For the quarter ended September 30, 2025, the average cost of deposits was reported at 2.32%. This was an improvement sequentially from 2.34% in Q2 2025, reflecting deposit costs repricing lower due to prior market interest rate cuts. On the borrowings side, the average cost of Federal Home Loan Bank (FHLB) advances for the same period was 4.27%.

Salaries and benefits represent a major noninterest expense category for Sound Financial Bancorp, Inc. While specific Q3 2025 dollar amounts for this line item aren't explicitly detailed in the latest summaries, management commentary from earlier in the year indicated that technology investments were helping to drive year-over-year reductions in combined salaries and benefits, even as total noninterest expense remained stable at $7.7 million for the quarter ended September 30, 2025.

Technology and data processing costs are an area of necessary investment. Management noted that while technology investments have increased costs compared to the prior year, they are generating operational efficiencies and positioning the company to scale. You should expect these costs to be a persistent, and likely growing, component of the operating expense structure as Sound Financial Bancorp, Inc. continues to modernize its platforms.

Occupancy and equipment costs for the branch network are another fixed-cost element. Sound Community Bank maintains full-service branches in Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles, and Port Ludlow, plus a Loan Production Office in Madison Park. These physical locations drive the occupancy and related equipment expenses that are inherent to a community bank model.

The final key element impacting profitability is the Provision for credit losses. This is a direct charge against earnings to cover expected loan losses. For the quarter ended September 30, 2025, the provision for credit losses recorded was $55 thousand. This figure is composed of a provision for credit losses on loans of $65 thousand, partially offset by a release of provision for credit losses on unfunded loan commitments of $10 thousand.

Here's how that provision compares to the preceding and prior-year quarters:

Metric	Q3 2025	Q2 2025	Q3 2024
Total Provision for Credit Losses	$55 thousand	$170 thousand	$8 thousand
Provision for Credit Losses on Loans	$65 thousand	$164 thousand	N/A
Release of Provision for Loan Commitments	$10 thousand	$6 thousand (Provision)	N/A

The allowance for credit losses on loans to total loans outstanding stood at 0.94% as of September 30, 2025. The reduction in the provision expense from Q2 2025 to Q3 2025 was primarily attributed to a smaller increase in the overall loan portfolio size during the third quarter.

To summarize the major noninterest expense drivers:

• Salaries and benefits, managed through expense discipline.
• Technology and data processing, increasing near-term but driving long-term efficiency.
• Occupancy and equipment, tied to the physical branch footprint.
• Provision for credit losses, which was $55 thousand in Q3 2025.

Finance: draft 13-week cash view by Friday.

Sound Financial Bancorp, Inc. (SFBC) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Sound Financial Bancorp, Inc. (SFBC)'s profitability, which is heavily weighted toward traditional banking activities, though noninterest income plays a role, albeit a volatile one as of late 2025.

Net Interest Income (NII) remains the primary driver. For the quarter ended September 30, 2025, Sound Financial Bancorp, Inc. reported NII of $8.94 million. This figure represented a decrease from the linked quarter but a significant year-over-year improvement. The annualized Net Interest Margin (NIM) for Q3 2025 was 3.48%.

The interest income side of the equation is fueled by the loan book. Interest income from loans for the third quarter of 2025 was $13.5 million. The average yield on total loans for that same quarter was 5.89%, on an average total loan balance of $910.3 million. This yield was down from the 6.14% seen in Q2 2025, largely because of the nonrecurring interest income recognized from payoffs of loans previously on nonaccrual status in the prior quarter.

Noninterest income streams provide diversification, though they were challenged in Q3 2025. Total noninterest income for the quarter was $881 thousand. This was a sharp sequential decline of 21.3% from the second quarter of 2025. The primary reason for this drop was a significant negative fair value adjustment on mortgage servicing rights (MSRs), specifically a $372 thousand negative MSR fair value adjustment.

Here's a breakdown of the key revenue components for the third quarter of 2025, focusing on the known figures and the context surrounding the other requested streams:

Revenue Component	Q3 2025 Amount	Context/Notes
Net Interest Income (NII)	$8.94 million	Reported for the quarter ended September 30, 2025.
Interest Income from Loans	$13.5 million	Average loan yield was 5.89% on an average balance of $910.3 million.
Total Noninterest Income	$881 thousand	Decreased 21.3% from Q2 2025.
Impact from Mortgage Servicing Rights (MSRs)	Negative $372 thousand	Fair value adjustment was negative for the quarter.
Income from Bank-Owned Life Insurance (BOLI)	Not specified	Stated as being higher than the prior quarter.
Gains from Loan Sales	Not specified	Stated as being stronger than the prior quarter.

You can see the noninterest income is sensitive to market valuation changes, especially MSRs. The other components, service charges and fees, BOLI, and loan sales, are smaller pieces that, when combined with the MSR impact, result in the total noninterest income figure.

For service charges and fees, while the total noninterest income is known, the specific Q3 2025 dollar amount for service charges and fees isn't explicitly broken out in the same report that gave the total. However, we know that the overall noninterest income decline was partially offset by stronger loan sale gains and higher BOLI income. This suggests that the service charges and fees component, along with the loan sale gains and BOLI income, totaled $881 thousand minus the negative MSR adjustment.

The streams that make up the noninterest income bucket, excluding the MSR adjustment, include:

• Noninterest income from service charges and fees
• Income from Bank-Owned Life Insurance (BOLI)
• Gains from loan sales and mortgage servicing rights (Note: The gain from loan sales is separate from the MSR valuation adjustment, which was negative)
• Gain on disposal of assets (mentioned in prior quarter context)

The performance of these smaller streams is critical to stabilizing the overall noninterest revenue line. For instance, in Q4 2024, service charges and fee income was a component of noninterest income, which also included a $59 thousand decrease in earnings from BOLI. That context shows how sensitive BOLI earnings are to market rate fluctuations.

Finance: draft 13-week cash view by Friday.