Sound Financial Bancorp (SFBC) investor relations material

Executive summary

• Net income for Q1 2026 was $1.6 million ($0.61 diluted EPS), down from $2.2 million in Q4 2025 but up from $1.2 million in Q1 2025.

• Total assets grew to $1.11 billion, up 1.8% sequentially and 4.0% year-over-year.

• Loans and deposits both increased meaningfully, with deposits up $19.6 million sequentially and $58.2 million year-over-year.

• Board declared a $0.21 per share cash dividend, payable May 26, 2026.

Financial highlights

• Net interest income rose 4.4% sequentially and 12.1% year-over-year to $9.0 million.

• Net interest margin improved to 3.49% from 3.36% in Q4 2025 and 3.25% in Q1 2025.

• Noninterest income increased 5.0% sequentially but fell 17.1% year-over-year.

• Noninterest expense rose 15.1% sequentially, mainly due to higher salaries and regulatory assessments, but was flat year-over-year.

• Return on average assets was 0.58% and return on average equity was 5.78%.

Outlook and guidance

• Management remains focused on sustainable long-term performance amid economic uncertainty and elevated interest rates.

• Improving funding dynamics and a healthy capital position provide flexibility to support loan demand.