Sound Financial Bancorp (SFBC) investor relations material

Executive summary

• Q3 net income rose 37.0% YoY to $2.3 million, or $0.90 diluted EPS, from $1.7 million and $0.66; Q2 net income was $2.5 million, or $0.98 per share.

• 9M net income increased 30.5% to $6.4 million from $4.9 million; diluted EPS rose to $2.48 from $1.90.

• Total assets declined 4.5% to $1.04 billion and net loans fell 3.0% to $869.8 million from year-end 2025; deposits decreased 4.4% to $906.7 million.

Financial highlights

• Q3 net interest income rose 6.2% YoY to $9.5 million; total interest income decreased 1.2% to $14.5 million while interest expense fell 12.7% to $5.0 million.

• Q3 provision for credit losses was a $282,000 release versus a $55,000 expense; noninterest income rose 29.3% to $1.1 million and noninterest expense increased 4.3% to $8.0 million.

• Q3 net interest income after credit-loss provision was $9.8 million, up 10.0% YoY; income before tax was $2.9 million versus $2.1 million.

• 9M net interest income increased 7.1% to $28.1 million; noninterest income rose 12.2% to $3.5 million and noninterest expense increased 3.2% to $24.0 million.

Outlook and guidance

• Slower growth and rate uncertainty weighed on business and consumer loan demand; focus remained on relationship growth at returns commensurate with risk.

• Balance-sheet actions to reduce higher-cost debt aimed to improve the earnings profile while maintaining liquidity and capital; management expects quarterly cash dividends, subject to Board discretion.

• Liquidity resources included $119.7 million in cash and AFS securities, $188.5 million of remaining FHLB capacity, $22.2 million of Federal Reserve borrowing capacity and a $20.0 million unused PCBB facility, subject to conditions.