Sound Financial Bancorp, Inc. Q1 2026 Results
Rhea-AI Summary
Sound Financial Bancorp (Nasdaq: SFBC) reported Q1 2026 net income $1.6M or $0.61 diluted EPS. Total assets were $1.11B, loans held-for-portfolio $921.5M, and total deposits $968.5M at March 31, 2026. Net interest income was $9.05M and NIM annualized was 3.49%. The Board declared a cash dividend of $0.21 per share, payable May 26, 2026; the bank remained well-capitalized.
Positive
- Dividend declared of $0.21 per share payable May 26, 2026
- Net interest income rose to $9.05M, up 12.1% YoY
- Total assets $1.11B, up 4.0% YoY
- Bank capital remained classified as well-capitalized
Negative
- Net income fell to $1.6M, down from $2.2M in Q4 2025
- Noninterest expense increased 15.1% quarter-over-quarter to $7.9M
- Nonperforming loans increased 27.6% QoQ to $7.4M
News Market Reaction – SFBC
In the Apr 29 session, SFBC declined 1.41%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SEATTLE, April 28, 2026 (GLOBE NEWSWIRE) -- Sound Financial Bancorp, Inc. (the "Company") (Nasdaq: SFBC), the holding company for Sound Community Bank (the "Bank"), today reported net income of
Comments from the Chief Executive Officer and President / Chief Financial Officer
“Economic uncertainty and elevated interest rates tempered loan demand in the first quarter. Nevertheless, we continued to generate solid deposit growth, with total deposits increasing
"Our first quarter results demonstrate improving earnings capacity as margin expansion and balance sheet growth offset seasonal expense patterns,” said Wes Ochs, President and Chief Financial Officer. “Net interest income increased sequentially and year‑over‑year, both loans and deposits grew meaningfully during the quarter, and liquidity strengthened, providing flexibility to support loan demand.”
Mr. Ochs added, “While credit metrics declined modestly during the quarter, nonperforming assets remain manageable and reserves continue to reflect the underlying risk characteristics of the portfolio. With improving funding dynamics and a healthy capital position, we remain focused on sustainable long‑term performance.”
| Q1 2026 Financial Performance | ||||
Total assets increased Loans held-for-portfolio increased Total deposits increased The loans-to-deposits ratio was Total nonperforming loans increased | Net interest income increased Net interest margin ("NIM"), annualized, was A Total noninterest income increased Total noninterest expense increased The Bank maintained capital levels in excess of regulatory requirements and was categorized as "well-capitalized" at March 31, 2026. | |||
Operating Results
Net Interest Income after Provision for Credit Losses
| For the Quarter Ended | Q1 2026 vs. Q4 2025 | Q1 2026 vs. Q1 2025 | ||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | Amount ($) | Percentage (%) | Amount ($) | Percentage (%) | ||||||||||||||||||
| (Dollars in thousands, unaudited) | ||||||||||||||||||||||||
| Interest income | $ | 14,465 | $ | 14,284 | $ | 13,706 | $ | 181 | $ | 759 | ||||||||||||||
| Interest expense | 5,418 | 5,622 | 5,635 | (204 | ) | (3.6)% | (217 | ) | (3.9)% | |||||||||||||||
| Net interest income | 9,047 | 8,662 | 8,071 | 385 | 976 | |||||||||||||||||||
| Provision for credit losses | 123 | 104 | (203 | ) | 19 | 326 | (160.6)% | |||||||||||||||||
| Net interest income after provision for credit losses | 8,924 | 8,558 | 8,274 | 366 | 650 | |||||||||||||||||||
Q1 2026 vs. Q4 2025
Interest income increased
Interest income on loans increased
Interest income on investments was
Interest expense decreased
Net interest margin, annualized, increased to
A provision for credit losses of
Q1 2026 vs. Q1 2025
Interest income on loans increased
Interest income on investments was
Interest expense decreased
Net interest margin, annualized, increased to
A provision for credit losses of
Noninterest Income
| For the Quarter Ended | Q1 2026 vs. Q4 2025 | Q1 2026 vs. Q1 2025 | ||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | Amount ($) | Percentage (%) | Amount ($) | Percentage (%) | ||||||||||||||||||||
| (Dollars in thousands, unaudited) | ||||||||||||||||||||||||||
| Service charges and fee income | $ | 624 | $ | 649 | $ | 684 | $ | (25 | ) | (3.9)% | $ | (60 | ) | (8.8)% | ||||||||||||
| Earnings on bank-owned life insurance (“BOLI”) | 130 | 189 | 195 | (59 | ) | (31.2)% | (65 | ) | (33.3)% | |||||||||||||||||
| Mortgage servicing income | 248 | 253 | 269 | (5 | ) | (2.0)% | (21 | ) | (7.8)% | |||||||||||||||||
| Fair value adjustment on mortgage servicing rights | (140 | ) | (160 | ) | (99 | ) | 20 | (12.5)% | (41 | ) | ||||||||||||||||
| Net gain on sale of loans | 101 | 73 | 49 | 28 | 38.4 | % | 52 | |||||||||||||||||||
| Other income | (53 | ) | (137 | ) | — | 84 | (61.3)% | (53 | ) | —% | ||||||||||||||||
| Total noninterest income | $ | 910 | $ | 867 | $ | 1,098 | $ | 43 | 5.0 | % | $ | (188 | ) | (17.1)% | ||||||||||||
Q1 2026 vs. Q4 2025
Noninterest income during the current quarter compared to the quarter ended December 31, 2025 increased by
- an
$84 thousand increase in other income due to lower estimated costs associated with closing our Tacoma branch in the current quarter compared to losses recognized on the disposal of Integrated Teller Machines (ITMs) decommissioned or replaced in the prior quarter; - a
$28 thousand increase in net gain on sale of loans, primarily related to a higher volume of loans sold; and - a
$20 thousand increase in the fair value adjustment on mortgage servicing rights, primarily reflecting changes in valuation assumptions associated with the prepayment speeds and interest rate declines applied to a smaller servicing portfolio, which led to a lower reduction in the portfolio fair value than in the prior quarter.
These increases were partially offset by:
- a
$59 thousand decrease in earnings on BOLI, primarily due to fluctuations in market interest rates; and - a
$25 thousand decrease in service charges and fee income, primarily due to lower interchange income partially related to seasonal swipe activity in the fourth quarter of 2025 being higher during the holiday season.
Loans sold during the quarter ended March 31, 2026, totaled
Q1 2026 vs. Q1 2025
Noninterest income decreased
- a
$60 thousand decrease in service charges and fee income, primarily due to the timing of the recognition of the annual volume incentive paid by Mastercard in 2025 and 2026; - a
$65 thousand decrease in earnings from BOLI, primarily due to the strategic decision to surrender and exchange existing policies into higher yielding policies in the first quarter of 2025, with the benefit of improved yields continuing into the current quarter, partially offset by lower market interest rates in the current quarter; - a
$21 thousand decrease in mortgage servicing income as a result of a smaller servicing portfolio; - a
$41 thousand decline in the fair value adjustment on mortgage servicing rights due to an overall smaller servicing portfolio and changes in valuation assumptions associated with the cost to service loans and interest rate movements compared to the prior year; and - a
$53 thousand decrease in other income due to estimated Tacoma branch closure expenditures in the current quarter.
These decreases were partially offset by a
Noninterest Expense
| For the Quarter Ended | Q1 2026 vs. Q4 2025 | Q1 2026 vs. Q1 2025 | ||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | Amount ($) | Percentage (%) | Amount ($) | Percentage (%) | ||||||||||||||||||
| (Dollars in thousands, unaudited) | ||||||||||||||||||||||||
| Salaries and benefits | $ | 4,458 | $ | 3,533 | $ | 4,595 | $ | 925 | $ | (137 | ) | (3.0)% | ||||||||||||
| Operations | 1,501 | 1,683 | 1,365 | (182 | ) | (10.8)% | 136 | |||||||||||||||||
| Regulatory assessments | 198 | (53 | ) | 221 | 251 | (473.6)% | (23 | ) | (10.4)% | |||||||||||||||
| Occupancy | 427 | 460 | 437 | (33 | ) | (7.2)% | (10 | ) | (2.3)% | |||||||||||||||
| Data processing | 1,287 | 1,200 | 1,293 | 87 | (6 | ) | (0.5)% | |||||||||||||||||
| Net loss (gain) on OREO and repossessed assets | 3 | 17 | 3 | (14 | ) | (82.4)% | — | —% | ||||||||||||||||
| Total noninterest expense | $ | 7,874 | $ | 6,840 | $ | 7,914 | $ | 1,034 | $ | (40 | ) | (0.5)% | ||||||||||||
Q1 2026 vs. Q4 2025
The increase in noninterest expense during the current quarter compared to the quarter ended December 31, 2025 was primarily related to:
- a
$925 thousand increase in salaries and benefits due to a higher salaries expense, partially due to accrual reversals in the fourth quarter 2025, higher incentive expense, higher payroll taxes related to annual bonus payments, and higher expenses related to our employee stock ownership plan resulting from the strategic decision to reduce the amount purchased in the fourth quarter of 2025, thereby reducing the expense in the fourth quarter; - a
$251 thousand increase in regulatory assessments primarily due to the downward revision of estimated accrued expense in the fourth quarter of 2025, which resulted from lower than expected exam costs and reduced quarterly assessments due to a lower rate applied to a lower average asset balance with no corresponding true-up in the current quarter; and - an
$87 thousand increase in data processing, primarily due to a vendor reimbursement during the prior quarter and higher processing costs related to some of our software vendors partially due to the addition of new features, such as fraud detection software, which has resulted in lower operational losses in our operations line item.
These increases were partially offset by:
- a
$182 thousand decrease in operations expense, primarily due to higher costs associated with our debit card processing in the prior quarter and lower fraud losses; and - a
$33 thousand decrease in occupancy due to higher property charges and maintenance fees recognized in the prior quarter primarily due to repair work performed in connection with the decommissioning of ITMs.
Q1 2026 vs. Q1 2025
The decrease in noninterest expense during the current quarter compared to the quarter ended March 31, 2025 was primarily related to:
- a
$137 thousand decrease in salaries and benefits due to a reduction in salary expense due to the impact of deferred compensation accruals for key executives and an increase in deferred salaries due to loan growth, partially offset by an increase in medical expense due to higher premiums paid by the Company; - a
$23 thousand decrease in regulatory assessments, primarily due to reduced quarterly assessments resulting from a lower rate applied to a lower average asset balance; and - a
$10 thousand decrease in occupancy expense, due to higher building lease charges in 2025 resulting from lease renewals and maintenance charges.
These decreases were partially offset by a
Balance Sheet Review, Capital Management and Credit Quality
Assets totaled
Cash and cash equivalents decreased
Investment securities decreased
Loans held-for-portfolio totaled
Equity securities totaled
Nonperforming assets (“NPAs”), which are comprised of nonaccrual loans (including nonperforming modified loans), other real estate owned (“OREO”) and other repossessed assets, increased
Nonperforming loans totaled
NPAs to total assets were
The following table summarizes our NPAs at the dates indicated (dollars in thousands):
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||
| Nonperforming Loans: | |||||||||||||||||||
| One-to-four family | $ | 1,939 | $ | 1,597 | $ | 609 | $ | 1,423 | $ | 762 | |||||||||
| Home equity loans | 383 | 187 | 201 | 359 | 368 | ||||||||||||||
| Commercial and multifamily | 4,213 | 3,163 | 1,065 | 1,065 | 5,627 | ||||||||||||||
| Construction and land | 80 | 82 | 103 | 21 | 22 | ||||||||||||||
| Manufactured homes | 475 | 461 | 476 | 489 | 501 | ||||||||||||||
| Floating homes | — | — | — | — | 2,363 | ||||||||||||||
| Commercial business | 30 | 30 | — | — | — | ||||||||||||||
| Other consumer | 259 | 262 | 263 | 9 | 10 | ||||||||||||||
| Total nonperforming loans | 7,379 | 5,782 | 2,717 | 3,366 | 9,653 | ||||||||||||||
| OREO and Other Repossessed Assets: | |||||||||||||||||||
| One-to-four family | — | 259 | 259 | 259 | — | ||||||||||||||
| Manufactured homes | 99 | 85 | 85 | 41 | 41 | ||||||||||||||
| Total OREO and repossessed assets | 99 | 344 | 344 | 300 | 41 | ||||||||||||||
| Total NPAs | $ | 7,478 | $ | 6,126 | $ | 3,061 | $ | 3,666 | $ | 9,694 | |||||||||
| Percentage of Nonperforming Loans: | |||||||||||||||||||
| One-to-four family | 25.9 | % | 26.1 | % | 19.9 | % | 38.8 | % | 7.9 | % | |||||||||
| Home equity loans | 5.1 | 3.1 | 6.6 | 9.8 | 3.8 | ||||||||||||||
| Commercial and multifamily | 56.3 | 51.6 | 34.8 | 29.1 | 58.0 | ||||||||||||||
| Construction and land | 1.1 | 1.3 | 3.4 | 0.6 | 0.2 | ||||||||||||||
| Manufactured homes | 6.4 | 7.5 | 15.6 | 13.3 | 5.2 | ||||||||||||||
| Floating homes | — | — | — | — | 24.4 | ||||||||||||||
| Commercial business | 0.4 | 0.5 | — | — | — | ||||||||||||||
| Other consumer | 3.5 | 4.3 | 8.5 | 0.2 | 0.1 | ||||||||||||||
| Total nonperforming loans | 98.7 | 94.4 | 88.8 | 91.8 | 99.6 | ||||||||||||||
| Percentage of OREO and Other Repossessed Assets: | |||||||||||||||||||
| One-to-four family | — | 4.2 | 8.4 | 7.1 | — | ||||||||||||||
| Manufactured homes | 1.3 | 1.4 | 2.8 | 1.1 | 0.4 | ||||||||||||||
| Total OREO and repossessed assets | 1.3 | 5.6 | 11.2 | 8.2 | 0.4 | ||||||||||||||
| Total NPAs | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
The following table summarizes the allowance for credit losses at the dates and for the periods indicated (dollars in thousands, unaudited):
| At or For the Quarter Ended: | |||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||
| Allowance for Credit Losses on Loans | |||||||||||||||||||
| Balance at beginning of period | $ | 8,605 | $ | 8,564 | $ | 8,536 | $ | 8,393 | $ | 8,499 | |||||||||
| Provision for (release of) provision for credit losses during the period | 49 | 68 | 65 | 164 | (85 | ) | |||||||||||||
| Net charge-offs during the period | (19 | ) | (27 | ) | (37 | ) | (21 | ) | (21 | ) | |||||||||
| Balance at end of period | $ | 8,635 | $ | 8,605 | $ | 8,564 | $ | 8,536 | $ | 8,393 | |||||||||
| Allowance for Credit Losses on Unfunded Loan Commitments | |||||||||||||||||||
| Balance at beginning of period | $ | 148 | $ | 112 | $ | 122 | $ | 116 | $ | 234 | |||||||||
| Provision for (release of) credit losses during the period | 74 | 36 | (10 | ) | 6 | (118 | ) | ||||||||||||
| Balance at end of period | 222 | 148 | 112 | 122 | 116 | ||||||||||||||
| Allowance for Credit Losses | $ | 8,857 | $ | 8,753 | $ | 8,676 | $ | 8,658 | $ | 8,509 | |||||||||
| Allowance for credit losses on loans to total loans | 0.94 | % | 0.95 | % | 0.94 | % | 0.94 | % | 0.95 | % | |||||||||
| Allowance for credit losses to total loans | 0.96 | % | 0.97 | % | 0.95 | % | 0.96 | % | 0.96 | % | |||||||||
| Allowance for credit losses on loans to total nonperforming loans | 117.02 | % | 148.82 | % | 315.20 | % | 253.59 | % | 86.95 | % | |||||||||
| Allowance for credit losses to total nonperforming loans | 120.03 | % | 151.38 | % | 319.32 | % | 257.22 | % | 88.15 | % | |||||||||
Total deposits increased
FHLB advances totaled
Stockholders’ equity totaled
Sound Financial Bancorp, Inc., a bank holding company, is the parent company of Sound Community Bank, which is headquartered in Seattle, Washington and has full-service branches in Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles, Port Ludlow and University Place. Our Tacoma branch is scheduled to close on May 1, 2026 as part of ongoing strategic consolidation efforts. Sound Community Bank is a Fannie Mae Approved Lender and Seller/Servicer with one loan production office located in the Madison Park neighborhood of Seattle. For more information, please visit www.soundcb.com.
Forward-Looking Statements Disclaimer
When used in this press release and in documents filed or furnished by Sound Financial Bancorp, Inc. (the "Company") with the Securities and Exchange Commission (the "SEC"), as well as in the Company's other press releases, other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "intends" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of the Company's future financial performance based on its growth strategies and anticipated trends in its business. These statements are only predictions based on the Company's current expectations and projections about future events and may turn out to be wrong because of inaccurate assumptions, the factors listed below or other factors that the Company cannot foresee that could cause the Company's actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made.
Factors that could cause the Company's actual results to differ materially from those expressed or implied by these forward-looking statements and from historical performance include, but are not limited to: adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of persistent inflation, recessionary pressures or slowing economic growth; changes in interest rate levels and volatility, and the timing and pace of such changes, including actions by the Board of Governors of the Federal Reserve System, which could adversely affect the Company's revenues and expenses, the values of the Company's assets and obligations and the availability and cost of capital and liquidity; the impact of inflation and related monetary and fiscal policy responses, including their effects on consumer and business behavior; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal uncertainty; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry on investor and depositor sentiment; changes in consumer spending, borrowing and savings habits; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; the Company's ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company's market area; secondary market conditions for loans; the Company's ability to implement key growth initiatives and strategic priorities; environmental, social and governance matters; results of examinations of the Company or the Bank by their regulators; increased competition; changes in management's business strategies; the ability to adapt to rapid technological changes, including advancements related to artificial intelligence, digital banking platforms, and cybersecurity; legislation or regulatory changes, including but not limited to changes in capital requirements, banking regulations, tax laws, or consumer protection laws; vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or attacks; geopolitical developments and international conflicts, as well as the imposition of new or increased tariffs and trade restrictions, any of which may disrupt financial markets, global supply chains, commodity prices, or economic activity in specific industry sectors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest and other external events on our business; and other factors described in the Company's latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with or furnished to the SEC, which are available at www.soundcb.com and on the SEC's website at www.sec.gov.
The Company does not undertake—and specifically disclaims any obligation—to revise any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statement.
CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, unaudited)
| For the Quarter Ended | ||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||||
| Interest income | $ | 14,465 | $ | 14,284 | $ | 14,652 | $ | 14,915 | $ | 13,706 | ||||||||||
| Interest expense | 5,418 | 5,622 | 5,712 | 5,660 | 5,635 | |||||||||||||||
| Net interest income | 9,047 | 8,662 | 8,940 | 9,255 | 8,071 | |||||||||||||||
| Provision for (release of provision for) credit losses | 123 | 104 | 55 | 170 | (203 | ) | ||||||||||||||
| Net interest income after provision for (release of provision for) credit losses | 8,924 | 8,558 | 8,885 | 9,085 | 8,274 | |||||||||||||||
| Noninterest income: | ||||||||||||||||||||
| Service charges and fee income | 624 | 649 | 672 | 664 | 684 | |||||||||||||||
| Earnings on bank-owned life insurance | 130 | 189 | 225 | 229 | 195 | |||||||||||||||
| Mortgage servicing income | 248 | 253 | 262 | 263 | 269 | |||||||||||||||
| Fair value adjustment on mortgage servicing rights | (140 | ) | (160 | ) | (372 | ) | (80 | ) | (99 | ) | ||||||||||
| Net gain on sale of loans | 101 | 73 | 94 | 44 | 49 | |||||||||||||||
| Other income (loss) | (53 | ) | (137 | ) | — | — | — | |||||||||||||
| Total noninterest income | 910 | 867 | 881 | 1,120 | 1,098 | |||||||||||||||
| Noninterest expense: | ||||||||||||||||||||
| Salaries and benefits | 4,458 | 3,533 | 4,259 | 4,321 | 4,595 | |||||||||||||||
| Operations | 1,501 | 1,683 | 1,483 | 1,443 | 1,365 | |||||||||||||||
| Regulatory assessments | 198 | (53 | ) | 221 | 222 | 221 | ||||||||||||||
| Occupancy | 427 | 460 | 431 | 416 | 437 | |||||||||||||||
| Data processing | 1,287 | 1,200 | 1,274 | 1,254 | 1,293 | |||||||||||||||
| Net loss on OREO and repossessed assets | 3 | 17 | 8 | 9 | 3 | |||||||||||||||
| Total noninterest expense | 7,874 | 6,840 | 7,676 | 7,665 | 7,914 | |||||||||||||||
| Income before provision for income taxes | 1,960 | 2,585 | 2,090 | 2,540 | 1,458 | |||||||||||||||
| Provision for income taxes | 384 | 339 | 395 | 488 | 291 | |||||||||||||||
| Net income | $ | 1,576 | $ | 2,246 | $ | 1,695 | $ | 2,052 | $ | 1,167 | ||||||||||
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, unaudited)
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and cash equivalents | $ | 137,984 | $ | 138,453 | $ | 101,156 | $ | 102,542 | $ | 131,494 | ||||||||||
| Available-for-sale securities, at fair value | 7,517 | 7,699 | 7,637 | 7,521 | 7,689 | |||||||||||||||
| Held-to-maturity securities, at amortized cost | 1,884 | 1,892 | 1,899 | 2,113 | 2,121 | |||||||||||||||
| Equity securities | 5,000 | — | — | — | — | |||||||||||||||
| Loans held-for-sale | 281 | 542 | 271 | 2,025 | 2,267 | |||||||||||||||
| Loans held-for-portfolio | 921,518 | 905,533 | 909,715 | 904,286 | 886,226 | |||||||||||||||
| Allowance for credit losses - loans | (8,635 | ) | (8,605 | ) | (8,564 | ) | (8,536 | ) | (8,393 | ) | ||||||||||
| Total loans held-for-portfolio, net | 912,883 | 896,928 | 901,151 | 895,750 | 877,833 | |||||||||||||||
| Accrued interest receivable | 3,888 | 3,771 | 3,896 | 3,658 | 3,540 | |||||||||||||||
| Bank-owned life insurance, net | 23,747 | 23,327 | 23,138 | 22,913 | 22,685 | |||||||||||||||
| Other real estate owned ("OREO") and other repossessed assets, net | 99 | 344 | 344 | 300 | 41 | |||||||||||||||
| Mortgage servicing rights, at fair value | 4,096 | 4,183 | 4,305 | 4,638 | 4,688 | |||||||||||||||
| Federal Home Loan Bank ("FHLB") stock, at cost | 1,120 | 1,060 | 1,735 | 1,734 | 1,734 | |||||||||||||||
| Premises and equipment, net | 4,168 | 4,239 | 4,421 | 4,498 | 4,591 | |||||||||||||||
| Right-of-use assets | 3,133 | 3,423 | 3,679 | 3,933 | 3,546 | |||||||||||||||
| Other assets | 6,251 | 6,312 | 6,531 | 6,617 | 6,957 | |||||||||||||||
| TOTAL ASSETS | $ | 1,112,051 | $ | 1,092,173 | $ | 1,060,163 | $ | 1,058,242 | $ | 1,069,186 | ||||||||||
| LIABILITIES | ||||||||||||||||||||
| Interest-bearing deposits | $ | 837,409 | $ | 816,309 | $ | 767,554 | $ | 775,262 | $ | 783,660 | ||||||||||
| Noninterest-bearing deposits | 131,092 | 132,566 | 131,389 | 124,197 | 126,687 | |||||||||||||||
| Total deposits | 968,501 | 948,875 | 898,943 | 899,459 | 910,347 | |||||||||||||||
| Borrowings | 10,000 | 10,000 | 25,000 | 25,000 | 25,000 | |||||||||||||||
| Accrued interest payable | 496 | 674 | 774 | 634 | 586 | |||||||||||||||
| Lease liabilities | 3,364 | 3,671 | 3,943 | 4,213 | 3,828 | |||||||||||||||
| Other liabilities | 8,839 | 10,366 | 10,146 | 10,238 | 10,774 | |||||||||||||||
| Advance payments from borrowers for taxes and insurance | 2,625 | 1,387 | 2,116 | 914 | 2,450 | |||||||||||||||
| Subordinated notes, net | 7,812 | 7,801 | 11,791 | 11,780 | 11,770 | |||||||||||||||
| TOTAL LIABILITIES | 1,001,637 | 982,774 | 952,713 | 952,238 | 964,755 | |||||||||||||||
| STOCKHOLDERS' EQUITY: | ||||||||||||||||||||
| Common stock | 25 | 25 | 25 | 25 | 25 | |||||||||||||||
| Additional paid-in capital | 28,797 | 28,737 | 28,665 | 28,590 | 28,515 | |||||||||||||||
| Retained earnings | 82,518 | 81,483 | 79,724 | 78,517 | 76,952 | |||||||||||||||
| Accumulated other comprehensive loss, net of tax | (926 | ) | (846 | ) | (964 | ) | (1,128 | ) | (1,061 | ) | ||||||||||
| TOTAL STOCKHOLDERS' EQUITY | 110,414 | 109,399 | 107,450 | 106,004 | 104,431 | |||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,112,051 | $ | 1,092,173 | $ | 1,060,163 | $ | 1,058,242 | $ | 1,069,186 | ||||||||||
KEY FINANCIAL RATIOS
(unaudited)
| For the Quarter Ended | |||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||
| Annualized return on average assets | 0.58 | % | 0.84 | % | 0.63 | % | 0.78 | % | 0.45 | % | |||||
| Annualized return on average equity | 5.78 | % | 8.19 | % | 6.26 | % | 7.78 | % | 4.53 | % | |||||
| Annualized net interest margin(1) | 3.49 | % | 3.36 | % | 3.48 | % | 3.67 | % | 3.25 | % | |||||
| Annualized efficiency ratio(2) | 79.08 | % | 71.78 | % | 78.16 | % | 73.88 | % | 86.31 | % | |||||
(1) Net interest income divided by average interest earning assets.
(2) Noninterest expense divided by total revenue (net interest income and noninterest income).
PER COMMON SHARE DATA
(unaudited)
| At or For the Quarter Ended | |||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||
| Basic earnings per share | $ | 0.61 | $ | 0.87 | $ | 0.66 | $ | 0.80 | $ | 0.45 | |||||
| Diluted earnings per share | $ | 0.61 | $ | 0.87 | $ | 0.66 | $ | 0.79 | $ | 0.45 | |||||
| Weighted-average basic shares outstanding | 2,562,467 | 2,557,608 | 2,556,562 | 2,556,562 | 2,554,265 | ||||||||||
| Weighted-average diluted shares outstanding | 2,574,212 | 2,574,586 | 2,575,575 | 2,577,990 | 2,578,609 | ||||||||||
| Common shares outstanding at period-end | 2,568,043 | 2,567,953 | 2,566,069 | 2,566,069 | 2,566,069 | ||||||||||
| Book value per share | $ | 43.00 | $ | 42.60 | $ | 41.87 | $ | 41.31 | $ | 40.70 | |||||
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE PAID
(Dollars in thousands, unaudited)
The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates. Income and yields on tax-exempt obligations have not been computed on a tax equivalent basis. All average balances are daily average balances. Nonaccrual loans have been included in the table as loans carrying a zero yield for the period they have been on nonaccrual (dollars in thousands).
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Average Outstanding Balance | Interest Earned/Paid | Yield/Rate | Average Outstanding Balance | Interest Earned/Paid | Yield/Rate | Average Outstanding Balance | Interest Earned/Paid | Yield/Rate | |||||||||||||||||||||
| Interest-Earning Assets: | |||||||||||||||||||||||||||||
| Loans receivable | $ | 914,113 | $ | 13,307 | 5.90 | % | $ | 905,754 | $ | 13,155 | 5.76 | % | $ | 896,822 | $ | 12,588 | 5.69 | % | |||||||||||
| Interest-earning cash | 120,683 | 1,061 | 3.57 | % | 103,892 | 1,007 | 3.85 | % | 95,999 | 1,010 | 4.27 | % | |||||||||||||||||
| Investments | 15,646 | 97 | 2.51 | % | 12,218 | 122 | 3.96 | % | 12,924 | 108 | 3.39 | % | |||||||||||||||||
| Total interest-earning assets | $ | 1,050,442 | 14,465 | 5.58 | % | 1,021,864 | $ | 14,284 | 5.55 | % | $ | 1,005,745 | 13,706 | 5.53 | % | ||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||||||||
| Savings and money market accounts | $ | 388,633 | 2,306 | 2.41 | % | $ | 363,341 | 2,327 | 2.54 | % | $ | 332,406 | 2,058 | 2.51 | % | ||||||||||||||
| Demand and NOW accounts | 125,932 | 82 | 0.26 | % | 126,984 | 93 | 0.29 | % | 140,905 | 108 | 0.31 | % | |||||||||||||||||
| Certificate accounts | 301,341 | 2,736 | 3.68 | % | 293,955 | 2,782 | 3.75 | % | 292,973 | 3,039 | 4.21 | % | |||||||||||||||||
| Subordinated notes | 7,808 | 186 | 9.66 | % | 7,798 | 197 | 10.02 | % | 11,766 | 168 | 5.79 | % | |||||||||||||||||
| Borrowings | 10,556 | 108 | 4.15 | % | 20,109 | 223 | 4.40 | % | 25,000 | 262 | 4.25 | % | |||||||||||||||||
| Total interest-bearing liabilities | $ | 834,270 | 5,418 | 2.63 | % | $ | 812,187 | 5,622 | 2.75 | % | $ | 803,050 | 5,635 | 2.85 | % | ||||||||||||||
| Net interest income/spread | $ | 9,047 | 2.95 | % | $ | 8,662 | 2.80 | % | $ | 8,071 | 2.68 | % | |||||||||||||||||
| Net interest margin | 3.49 | % | 3.36 | % | 3.25 | % | |||||||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 126 | % | 126 | % | 125 | % | |||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 133,691 | $ | 128,964 | $ | 126,215 | |||||||||||||||||||||||
| Total deposits | 949,597 | $ | 5,124 | 2.19 | % | 913,244 | $ | 5,202 | 2.26 | % | 892,499 | $ | 5,205 | 2.37 | % | ||||||||||||||
| Total funding(1) | 967,961 | 5,418 | 2.27 | % | 941,151 | 5,622 | 2.37 | % | 929,265 | 5,635 | 2.46 | % | |||||||||||||||||
| (1) | Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as total interest expense divided by average total funding. |
LOANS
(Dollars in thousands, unaudited)
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||||
| Real estate loans: | ||||||||||||||||||||
| One-to-four family | $ | 251,146 | $ | 253,841 | $ | 257,797 | $ | 262,672 | $ | 262,457 | ||||||||||
| Home equity | 31,903 | 31,468 | 29,903 | 28,582 | 28,112 | |||||||||||||||
| Commercial and multifamily | 409,810 | 409,729 | 408,802 | 398,429 | 392,798 | |||||||||||||||
| Construction and land | 71,878 | 50,261 | 52,797 | 49,926 | 42,492 | |||||||||||||||
| Total real estate loans | 764,737 | 745,299 | 749,299 | 739,609 | 725,859 | |||||||||||||||
| Consumer loans: | ||||||||||||||||||||
| Manufactured homes | 42,968 | 43,080 | 42,735 | 43,112 | 42,448 | |||||||||||||||
| Floating homes | 84,927 | 87,315 | 88,674 | 91,448 | 86,626 | |||||||||||||||
| Other consumer | 15,978 | 16,571 | 17,031 | 17,259 | 18,224 | |||||||||||||||
| Total consumer loans | 143,873 | 146,966 | 148,440 | 151,819 | 147,298 | |||||||||||||||
| Commercial business loans | 15,164 | 15,378 | 14,214 | 14,779 | 14,690 | |||||||||||||||
| Total loans | 923,774 | 907,643 | 911,953 | 906,207 | 887,847 | |||||||||||||||
| Less: | ||||||||||||||||||||
| Premiums | 610 | 627 | 644 | 662 | 688 | |||||||||||||||
| Deferred fees, net | (2,866 | ) | (2,737 | ) | (2,882 | ) | (2,583 | ) | (2,309 | ) | ||||||||||
| Allowance for credit losses - loans | (8,635 | ) | (8,605 | ) | (8,564 | ) | (8,536 | ) | (8,393 | ) | ||||||||||
| Total loans held-for-portfolio, net | $ | 912,883 | $ | 896,928 | $ | 901,151 | $ | 895,750 | $ | 877,833 | ||||||||||
DEPOSITS
(Dollars in thousands, unaudited)
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||
| Noninterest-bearing demand | $ | 131,091 | $ | 132,566 | $ | 131,388 | $ | 124,197 | $ | 126,687 | |||||
| Interest-bearing demand | 130,643 | 125,634 | 129,570 | 137,222 | 143,595 | ||||||||||
| Savings | 58,881 | 59,478 | 60,106 | 61,813 | 63,533 | ||||||||||
| Money market | 345,913 | 331,604 | 286,827 | 282,346 | 287,058 | ||||||||||
| Certificates | 301,973 | 299,593 | 291,052 | 293,881 | 289,474 | ||||||||||
| Total deposits | $ | 968,501 | $ | 948,875 | $ | 898,943 | $ | 899,459 | $ | 910,347 | |||||
CREDIT QUALITY DATA
(Dollars in thousands, unaudited)
| At or For the Quarter Ended | ||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||||
| Total nonperforming loans | $ | 7,379 | $ | 5,782 | $ | 2,717 | $ | 3,366 | $ | 9,653 | ||||||||||
| OREO and other repossessed assets | 99 | 344 | 344 | 300 | 41 | |||||||||||||||
| Total nonperforming assets | $ | 7,478 | $ | 6,126 | $ | 3,061 | $ | 3,666 | $ | 9,694 | ||||||||||
| Net charge-offs during the quarter | $ | (19 | ) | $ | (27 | ) | $ | (37 | ) | $ | (21 | ) | $ | (21 | ) | |||||
| Provision for (release of) credit losses during the quarter | 123 | 104 | 55 | 170 | (203 | ) | ||||||||||||||
| Allowance for credit losses - loans | 8,635 | 8,605 | 8,564 | 8,536 | 8,393 | |||||||||||||||
| Allowance for credit losses - loans to total loans | 0.94 | % | 0.95 | % | 0.94 | % | 0.94 | % | 0.95 | % | ||||||||||
| Allowance for credit losses - loans to total nonperforming loans | 117.02 | % | 148.82 | % | 315.20 | % | 253.59 | % | 86.95 | % | ||||||||||
| Nonperforming loans to total loans | 0.80 | % | 0.64 | % | 0.30 | % | 0.37 | % | 1.09 | % | ||||||||||
| Nonperforming assets to total assets | 0.67 | % | 0.56 | % | 0.29 | % | 0.35 | % | 0.91 | % | ||||||||||
OTHER STATISTICS
(Dollars in thousands, unaudited)
| At or For the Quarter Ended | ||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||||
| Total loans to total deposits | 95.38 | % | 95.65 | % | 101.45 | % | 100.75 | % | 97.53 | % | ||||||||||
| Noninterest-bearing deposits to total deposits | 13.54 | % | 13.97 | % | 14.62 | % | 13.81 | % | 13.92 | % | ||||||||||
| Average total assets for the quarter | $ | 1,094,501 | $ | 1,066,451 | $ | 1,063,972 | $ | 1,055,881 | $ | 1,051,135 | ||||||||||
| Average total equity for the quarter | $ | 110,575 | $ | 108,837 | $ | 107,375 | $ | 105,803 | $ | 104,543 | ||||||||||
Contact
| Financial: | |||
| Wes Ochs | |||
| President/CFO | |||
| (206) 436-8587 | |||
| Media: | |||
| Laurie Stewart | |||
| CEO | |||
| (206) 436-1495 | |||
