Sound Financial Bancorp (SFBC) investor relations material

Executive summary

• Net income for Q4 2025 was $2.2 million ($0.87 diluted EPS), up from $1.7 million ($0.66 EPS) in Q3 2025 and $1.9 million ($0.74 EPS) in Q4 2024.

• Board declared a $0.21 per share cash dividend, payable February 23, 2026.

• Year-end results reflect disciplined expense control, improved liquidity, and operational progress despite a weak mortgage market.

Financial highlights

• Total assets rose to $1.09 billion, up 3.0% sequentially and 9.9% year-over-year.

• Net interest income for Q4 2025 was $8.7 million, down 3.1% sequentially but up 5.4% year-over-year.

• Net interest margin was 3.36%, down from 3.48% in Q3 2025 but up from 3.13% in Q4 2024.

• Total deposits increased 5.6% sequentially and 13.3% year-over-year to $948.9 million.

• Loans held-for-portfolio decreased 0.5% sequentially but increased 0.6% year-over-year to $905.5 million.

• Noninterest income fell 1.6% sequentially and 25.3% year-over-year, mainly due to lower mortgage servicing rights valuation and ITM disposal losses.

• Noninterest expense decreased 10.9% sequentially and 3.1% year-over-year, driven by lower salaries, benefits, and regulatory assessments.

Outlook and guidance

• Management expects most deposits to reprice in the first half of 2026 while funding a growing commercial loan pipeline.

• Operational improvements and cost controls are expected to support loan growth and margin performance in 2026.