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Sound Financial Bancorp, Inc. Reports Net Income of $1.4 Million in the First Quarter of 2017, or $0.54 per share

SEATTLE, April 27, 2017 (GLOBE NEWSWIRE) -- Sound Financial Bancorp, Inc. (Nasdaq:SFBC), the holding company (the "Company") for Sound Community Bank (the "Bank"), today reported net income of $1.4 million for the quarter ended March 31, 2017, or $0.54 per diluted common share, compared to net income of $1.6 million, or $0.60 per diluted common share, for the quarter ended December 31, 2016 and $1.1 million, or diluted earnings per share of $0.43, for the quarter ended March 31, 2016.

“The first quarter is typically our slowest quarter for loan originations. Increased residential loan rates also had a dampening effect on mortgage originations in the first quarter. However, the continuing excellent credit environment again produced a net recovery in the quarter,” stated Sound Community Bank and Sound Financial Bancorp, Inc. President and CEO Laurie Stewart. “Deposit growth was also robust allowing us to reduce our reliance on borrowings. These factors contributed to results that were better than the first quarter of 2016 and are reflective of the strong local economy,” concluded Ms. Stewart.

The Company also announced today that the Board of Directors has declared a cash dividend on Company common stock of $0.10 per share, payable on May 26, 2017 to stockholders of record as of the close of business on May 12, 2017.

Highlights for the quarter ended March 31, 2017 include:

  • Net interest income decreased by $107,000, or 1.8%, to $5.8 million during the quarter ended March 31, 2017, compared to $5.9 million during the quarter ended December 31, 2016 and increased $446,000, or 8.3%, from $5.4 million during the quarter ended March 31, 2016.
  • Gain on sale of loans decreased by $167,000, or 49.4%, to $171,000 during the three months ended March 31, 2017, compared to $338,000 during the three months ended December 31, 2016 and also declined $39,000, or 18.6% from $210,000 during the three months ended March 31, 2016.
  • There was no provision for loan losses for the quarter ended March 31, 2017, compared to $204,000 and $150,000 for the quarters ended December 31, 2016 and March 31, 2016, respectively. Net recoveries for the first quarter of 2017 were $16,000 compared to net charge-offs of $241,000 for the fourth quarter in 2016 and $77,000 for the first quarter in 2016.
  • Net loans (excluding loans held for sale) decreased 2.2% to $484.5 million at March 31, 2017, from $495.2 million at December 31, 2016 and increased 5.8% from $457.7 million at March 31, 2016.
  • Deposits increased 2.8% to $480.8 million at March 31, 2017, from $467.7 million at December 31, 2016 and increased 7.3% from $448.1 million at March 31, 2016.
  • The net interest margin ("NIM") was 4.28% for the quarter ended March 31, 2017, compared to 4.35% for the quarter ended December 31, 2016 and 4.27% for the quarter ended March 31, 2016.
  • Return on average assets was 0.98% for the quarter ended March 31, 2017, compared to 1.09% for the quarter ended December 31, 2016 and 0.83% for the quarter ended March 31, 2016.
  • Return on average equity was 9.23% for the quarter ended March 31, 2017, compared to 10.50% for the quarter ended December 31, 2016 and 7.98% for the quarter ended March 31, 2016.

Both the Company and Bank continue to maintain capital levels in excess of the regulatory requirements and the Bank continued to be categorized as “well-capitalized” at March 31, 2017.

Operating Results

Net interest income decreased $107,000, or 1.8% to $5.8 million during the quarter ended March 31, 2017, compared to $5.9 million during the quarter ended December 31, 2016 and increased $446,000, or 8.3%, from $5.4 million during the quarter ended March 31, 2016. The change from the prior quarter was primarily a result of lower loan yields partially offset by higher interest income on cash and cash equivalents. The change from the comparable period a year ago was primarily a result of higher average loan balances and slightly higher average yields on loans. Average loan balances were $495.6 million for the quarter ended March 31, 2017 compared to $494.5 million for the quarter ended December 31, 2016 and $459.6 million for the quarter ended March 31, 2016. The average yield on loans was 5.20% for the quarter ended March 31, 2017 compared to 5.30% for the quarter ended December 31, 2016 and 5.18% for the quarter ended March 31, 2016.

Interest expense increased $32,000, or 4.1%, to $795,000 during the quarter ended March 31, 2017, compared to $763,000 during the quarter ended December 31, 2016 and increased $78,000, or 10.9%, compared to $717,000 for the quarter ended March 31, 2016. Interest expense on deposits increased $16,000, or 2.3% to $703,000 for the quarter ended March 31, 2017 compared to $687,000 for the quarter ended December 31, 2016 and increased $15,000, or 2.2%, from $688,000 during the quarter ended March 31, 2016. The increase from both comparative periods was primarily the result of higher average balances on interest-bearing deposits. The average cost of deposits was 0.60% for the first quarter of 2017 compared to 0.59% for the fourth quarter of 2016 and 0.61% for the three months ended March 31, 2016. The cost of borrowings increased $16,000, or 21.1%, to $92,000 during the quarter ended March 31, 2017, from $76,000 during the quarter ended December 31, 2016 and increased $63,000, or 217.2% from $29,000 for the quarter ended March 31, 2016. These increases were a result of an increase in the overnight borrowing rate in the current period and during the fourth quarter of 2016 reflecting the increase in the federal funds rate. The change in the average balances of borrowings from the Federal Home Loan Bank of Des Moines (“FHLB”) also contributed to the increased expense for the same period one year ago.

The net interest margin was 4.28% for the quarter ended March 31, 2017, compared to 4.35% for the quarter ended December 31, 2016 and 4.27% for the quarter ended March 31, 2016. The decline compared to the prior quarter was primarily the result of lower loan yields. The increase compared to the year ago period was primarily due to higher average loan balances and loan yields.

There was no provision for loan losses for the quarter ended March 31, 2017, compared to $204,000 for the quarter ended December 31, 2016 and $150,000 for the quarter ended March 31, 2016. The decrease from the quarter ended December 31, 2016 was primarily due to net recoveries during the current quarter as compared to net charge-off in the prior quarter as well as a decline in total loans. The decrease from the same period a year ago was primarily a result of a reduction in impaired loans and charge-offs.

Noninterest income decreased $443,000, or 30.8%, to $996,000 for the quarter ended March 31, 2017, compared to $1.4 million for the quarter ended December 31, 2016 and increased $46,000, or 4.8% from $950,000 for the quarter ended March 31, 2016. The decrease from the previous quarter was primarily a result of a $167,000 decline in the gain on sale of loans, a $145,000 decline in the fair value of mortgage servicing rights to a negative $20,000 fair value adjustment for the current quarter compared to a positive $125,000 for the quarter ended December 31, 2016 and a $67,000 decline in mortgage servicing income. In addition, service charges and fee income declined $61,000 from the previous quarter, reflecting the decline in loan originations. The increase in noninterest income compared to the year ago quarter was primarily the result of a $94,000 improvement in the fair value adjustment on mortgage servicing rights from a negative $114,000 for the quarter ended March 31, 2016 to a negative $20,000 fair value adjustment for the current quarter, and a $49,000 increase in mortgage servicing income, partially offset by declines in service charges and fee income and gain on sale of loans of $55,000 and $39,000, respectively. The declines in both the service charges and fee income and gain on sale of loans were a result of lower loan originations during the quarter.

Noninterest expense decreased $237,000, or 4.9%, to $4.6 million for the quarter ended March 31, 2017, compared to $4.9 million for the quarter ended December 31, 2016. The decrease was primarily a result of lower data processing and operations expense. Noninterest expense increased $158,000, or 3.5% during the quarter ended March 31, 2017 compared to the quarter ended March 31, 2016, primarily from higher salaries and benefits due to an increase in full time equivalent employees and operations expense, partially offset by a decrease in regulatory assessments.

Our efficiency ratio for the quarter ended March 31, 2017 was 67.99%, compared to 66.13% for the quarter ended December 31, 2016 and 70.80% for the quarter ended March 31, 2016. The increase in the efficiency ratio compared to the prior quarter was due to lower net interest and noninterest income. The improvement in the efficiency ratio compared to the year ago quarter was primarily due to higher net interest income and noninterest income, partially offset by higher noninterest expense.

Balance Sheet Review, Capital Management and Credit Quality

The Company's total assets as of March 31, 2017 were $575.4 million, compared to $588.4 million at December 31, 2016. This decrease was primarily a result of lower net loan and cash balances which decreased $10.7 million and $1.8 million, respectively, from December 31, 2016. The investment securities available-for-sale portfolio totaled $6.4 million at March 31, 2017, compared to $6.6 million at December 31, 2016. At March 31, 2017, the securities available-for-sale portfolio was comprised of $2.7 million of agency mortgage-backed securities (all issued by U.S. Government-sponsored entities), $322,000 in private-label mortgage-backed securities and $3.4 million in municipal bonds.

Gross loans, excluding loans held-for-sale, totaled $489.3 million at March 31, 2017, compared to $500.0 million at December 31, 2016 and $462.4 million at March 31, 2016. The inventory of houses for sale has been very low in the Puget Sound area and we have experienced a decline in the number of purchase and refinancing transactions during the first quarter, resulting in a decline in our residential loan portfolio since December 31, 2016. Residential loan closings for the first quarter of 2017 declined 46.9% to $20.3 million compared to $38.2 million during the fourth quarter of 2016. We experienced a decline in every loan category at March 31, 2017 compared to December 31, 2016, except for commercial and multifamily, manufactured housing and other consumer loans. At March 31, 2017, commercial and multifamily real estate loans accounted for 37.7% of the portfolio, one- to four- family residential loans accounted for 29.5% of the portfolio and consumer loans, consisting of home equity, manufactured and floating homes, and other consumer loans accounted for 14.6% of the portfolio. Construction and land loans accounted for 13.1% of the portfolio and commercial and industrial loans accounted for the remaining 5.2% of the portfolio at March 31, 2017.

Nonperforming assets ("NPAs"), which is comprised of non-accrual loans, accruing loans 90 days or more delinquent, and nonperforming troubled debt restructurings (“TDRs”), other real estate owned (“OREO”) and other repossessed assets, decreased $191,000, or 4.2%, to $4.3 million or 0.75% of total assets as of March 31, 2017, compared to $4.5 million or 0.77% of total assets as of December 31, 2016 and increased from $3.0 million, or 0.54% of total assets at March 31, 2016.

The following table summarizes our NPAs:

Nonperforming Loans: At Mar 31, 2017 At Dec 31, 2016 At Mar 31, 2016
(Dollars in thousands, unaudited) Balance % of Total Balance % of Total Balance % of Total
One- to four- family $2,056 47.5% $2,216 49.1% $1,577 53.4%
Home equity loans 798 18.4 553 12.2 434 14.8
Commercial and multifamily 215 5.0 218 4.8 - -
Construction and land - - - - - -
Manufactured 70 1.6 120 2.6 78 2.6
Floating - - - - - -
Other consumer - - - - 24 0.8
Commercial business 238 5.5 242 5.4 7 0.2
Total nonperforming loans 3,377 78.0 3,349 74.1 2,120 71.8
OREO and Other Repossessed Assets: At Mar 31, 2017 At Dec 31, 2016 At Mar 31, 2016
(Dollars in thousands, unaudited) Balance % of Total Balance % of Total Balance % of Total
One- to four- family 342 7.9 562 12.4 205 7.0
Commercial and multifamily 600 13.9 600 13.3 600 20.3
Manufactured 10 0.2 10 0.2 27 0.9
Total OREO and other repossessed assets 952 22.0 1,172 25.9 832 28.2
Total nonperforming assets $4,329 100.0% $4,521 100.0% $2,952 100.0%

The following table summarizes the allowance for loan losses:

For the Quarter Ended:
Allowance for Loan Losses Mar 31, Dec 31, Mar 31,
(Dollars in thousands, unaudited) 2017 2016 2016
Balance at beginning of period $4,822 $4,859 $4,636
Provision for loan losses during the period - 204 150
Net loan recoveries/(charge-offs) during the period 16 (241) (77)
Balance at end of period $4,838 $4,822 $4,709
Allowance for loan losses to total loans 0.99% 0.96% 1.02%
Allowance for loan losses to total nonperforming loans 143.26% 143.98% 222.12%

The increase in the allowance for loan losses at March 31, 2017, compared to the prior quarter was due to net recoveries totaling $16,000 received during the first quarter of 2017 compared to net charge-offs of $241,000 for the quarter ended December 31, 2016, partially offset by a $204,000 provision taken in the fourth quarter of 2016. No provision for loan losses was recorded in the first quarter of 2017 as total nonperforming loans remained relatively flat at $3.4 million as of March 31, 2017 compared to $3.3 million at December 31, 2016 and total average loans remained stable at $495.6 million compared to $494.5 million. The increase in the allowance for loan losses compared to the comparable period last year was due to $454,000 in provision for loan losses taken over the last year due primarily to increases in nonperforming loans and total average loans. Nonperforming loans increased $1.3 million, or 59.3% year over year to $3.4 million at March 31, 2017 from $2.1 million at March 31, 2016. Total average loans increased $35.9 million, or 7.8% to $495.6 million from $459.6 million at March 31, 2016. Net recoveries totaled $16,000 for the quarter ended March 31, 2017, compared to net charge-offs of $77,000 for the quarter ended March 31, 2016.

Deposits increased 2.8% to $480.8 million at March 31, 2017, compared to $467.7 million at December 31, 2016 and 7.3% from $448.1 million at March 31, 2016. The increase in deposits was due to our continued emphasis on developing relationships with retail and small business customers. All categories of deposits increased at March 31, 2017 compared to December 31, 2016 except for time deposit. Noninterest bearing demand deposits (including escrow accounts) increased $7.9 million or 12.4% to $71.6 million at March 31, 2017, compared to $63.7 million at December 31, 2016. Interest bearing demand deposits and savings and money market accounts increased $12.2 million or 5.0% to $256.5 million at March 31, 2017, compared to $244.2 million at December 31, 2016. Time deposit decreased $7.0 million or 4.4% to $152.7 million at March 31, 2017, compared to $159.7 million at December 31, 2016. Borrowings from the FHLB were $25.6 million at March 31, 2017, compared to $54.8 million at December 31, 2016 and $31.4 million at March 31, 2016. The increase in deposits for the quarter ended March 31, 2017, were used to reduce borrowings.

Sound Financial Bancorp, Inc., a bank holding company, is the parent company of Sound Community Bank, and is headquartered in Seattle, Washington with full-service branches in Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles and Port Ludlow. Sound Community Bank is a Fannie Mae Approved Lender and Seller/Servicer with an additional Loan Production Office in the Madison Park neighborhood of Seattle, Washington. For more information, please visit www.soundcb.com.

Forward Looking Statement Disclaimer

When used in filings by Sound Financial Bancorp, Inc. (the "Company”) with the Securities and Exchange Commission (the “SEC”), in the Company's press releases or 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 our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events, and may turn out to be wrong because of inaccurate assumptions we might make, because of the factors illustrated below or because of other important factors that we cannot foresee that could cause our actual results to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements.

Factors which could cause actual results to differ materially, include, but are not limited to: expected cost savings, synergies and other financial benefits from the pending acquisition of the University Place branch from Sunwest Bank might not be realized within the expected time frames or at all, and costs or difficulties relating to integration matters might be greater than expected; changes in economic conditions; legislative changes; changes in policies by regulatory agencies; 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 loan 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; results of examinations of the Company or its wholly owned bank subsidiary by their regulators; competition; changes in management’s business strategies and other factors described in the Company’s latest annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission – which are available at www.soundcb.com and on the SEC’s website at www.sec.gov.

The Company does not undertake - and specifically declines any obligation - to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

CONSOLIDATED INCOME STATEMENTS Quarter Ended Sequential Year over
(Dollars in thousands, unaudited) Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Quarter
% Change
Year
% Change
Interest income $6,592 $6,667 $6,068 (1.1)% 8.6%
Interest expense 795 763 717 4.1 10.9
Net interest income 5,797 5,904 5,351 (1.8) 8.3
Provision for loan losses - 204 150 nm nm
Net interest income after provision for loan losses 5,797 5,700 5,201 1.7 11.5
Noninterest income:
Service charges and fee income 511 572 566 (10.7) (9.7)
Increase in cash surrender value of life insurance 81 84 84 (3.6) (3.6)
Mortgage servicing income 253 320 204 (20.9) 24.1
Fair value adjustment on mortgage servicing rights (20) 125 (114) (116.0) 82.5
Gain on sale of loans 171 338 210 (49.4) (18.6)
Total noninterest income 996 1,439 950 (30.8) 4.8
Noninterest expense:
Salaries and benefits 2,691 2,693 2,563 (0.1) 5.0
Operations expense 1,021 1,125 972 (9.2) 5.0
Data processing 407 520 386 (21.7) 5.4
Net (gain) loss on OREO and repossessed assets 3 (2) - (250.0) nm
Other noninterest expense 497 520 540 (4.4) (8.0)
Total noninterest expense 4,619 4,856 4,461 (4.9) 3.5
Income before income taxes 2,174 2,283 1,690 (4.8) 28.6
Income tax expense 760 721 584 5.4 30.1
Net income $1,414 $1,562 $1,106 (9.5) 27.8

_____

nm = not meaningful

Quarter Ended Sequential Year over
KEY FINANCIAL RATIOS (unaudited) Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Quarter
% Change
Year
% Change
Annualized return on average assets 0.98% 1.09% 0.83% (9.7)% 18.6%
Annualized return on average equity 9.23 10.50 7.98 (12.1) 15.7
Annualized net interest margin 4.28 4.35 4.27 (1.5) 0.2
Annualized efficiency ratio 67.99% 66.13% 70.80% 2.8% (4.0)%


PER COMMON SHARE DATA Quarter Ended Sequential Year over
(Shares in thousands, unaudited) Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Quarter
% Change
Year
% Change
Basic earnings per share $0.57 $0.63 $0.45 (9.5)% 27.7%
Diluted earnings per share $0.54 $0.60 $0.43 (10.0) 25.5
Weighted average basic shares outstanding 2,500 2,499 2,478 0.0 0.9
Weighted average diluted shares outstanding 2,597 2,595 2,572 0.1 1.0
Common shares outstanding at period-end 2,500 2,499 2,481 0.0 0.7
Book value per share $24.65 $24.12 $22.39 2.2 10.1


CONSOLIDATED BALANCE SHEET Sequential
Quarter

% Change
Year over
Year

% Change
(Dollars in thousands, unaudited) Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
ASSETS
Cash and cash equivalents $52,807 $54,582 $49,679 (3.3)% 6.3%
Securities available-for-sale, at fair value 6,359 6,604 6,286 (3.7) 1.2
Loans held-for-sale 1,970 871 1,186 126.2 66.1
Loans:
One- to four- family residential 144,948 152,386 143,104 (4.9) 1.3
Home equity 27,533 27,771 32,022 (0.9) (14.0)
Commercial and multifamily 184,936 181,004 173,353 2.2 6.7
Construction and land 64,151 70,915 57,752 (9.5) 11.1
Manufactured homes 16,038 15,494 14,247 3.5 12.6
Floating Homes 23,746 23,996 18,731 (1.0) 26.8
Other consumer 4,244 3,932 4,658 7.9 (8.9)
Commercial business 25,307 26,331 20,230 (3.9) 25.1
Total loans 490,903 501,829 464,097 (2.2) 5.8
Deferred fees (1,613) (1,828) (1,665) (11.8) (3.1)
Total loans, gross 489,290 500,001 462,432 (2.1) 5.8
Allowance for loan losses (4,838) (4,822) (4,709) 0.3 2.7
Loans, net 484,452 495,179 457,723 (2.2) 5.8
Accrued interest receivable 1,754 1,816 1,595 (3.4) 10.0
Bank-owned life insurance 12,163 12,082 11,830 0.7 2.8
OREO and other repossessed assets, net 952 1,172 832 (18.8) 14.4
Mortgage servicing rights, at fair value 3,558 3,561 3,095 (0.1) 15.0
FHLB stock, at cost 1,731 2,840 1,903 (39.0) (9.0)
Premises and equipment, net 6,009 5,549 5,252 8.3 14.4
Other assets 3,621 4,127 4,157 (12.3) (12.9)
Total assets 575,376 588,383 543,538 (2.2) 5.9
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Demand deposit, noninterest-bearing 67,861 60,566 51,365 12.0 32.1
Demand deposit, interest-bearing 157,871 150,327 135,653 5.0 16.4
Savings 47,840 44,879 39,247 6.6 21.9
Money market 50,773 49,042 51,829 3.5 (2.0)
Time deposits 152,707 159,742 166,744 (4.4) (8.4)
Escrow 3,770 3,175 3,283 18.8 14.8
Total deposits 480,822 467,731 448,121 2.8 7.3
Accrued interest payable and other liabilities 7,295 5,585 8,489 30.6 (14.1)
Borrowings 25,631 54,792 31,374 (53.2) (18.3)
Total liabilities 513,748 528,108 487,984 (2.7) 5.3
Shareholders' equity:
Common stock 25 25 25 0.0 0.0
Paid-in capital 24,134 23,979 23,110 0.6 4.4
Unearned shares – ESOP (683) (683) (911) 0.0 (25.0)
Retained earnings 38,037 36,873 33,160 3.2 14.7
Accumulated other comprehensive income 115 81 170 42.4 (32.4)
Total shareholders' equity 61,628 60,275 55,554 2.2 10.9
Total liabilities and shareholders' equity $575,376 $588,383 $543,538 (2.2) 5.9



CREDIT QUALITY DATA
(Dollars in thousands, unaudited)
Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Sequential
Quarter

% Change
Year over
year

% Change
Nonaccrual loans $1,921 $3,144 $1,377 (38.9)% 39.5%
Loans 90+ days past due and still accruing - - 17 nm nm
Nonperforming TDRs 1,456 205 726 610.2 100.6
Total nonperforming loans 3,377 3,349 2,120 0.8 59.3
OREO and other repossessed assets 952 1,172 832 (18.8) 14.4
Total nonperforming assets $4,329 $4,521 $2,952 (4.2)% 46.6%
Performing TDRs on accrual $2,756 $2,789 $4,808 (1.2)% (42.7)%
Net charge-offs/(recoveries) during the quarter (16) 241 77 (106.6) (120.7)
Provision for loan losses during the quarter - 204 150 nm nm
Allowance for loan losses 4,838 4,822 4,709 0.3 2.7
Allowance for loan losses to total loans 0.99 % 0.96% 1.02 % 3.1 (2.9)
Allowance for loan losses to total nonperforming loans 143.26% 143.98% 222.12% (0.5) (35.5)
Nonperforming loans to total loans 0.69% 0.67% 0.46% 3.0 50.0
Nonperforming assets to total assets 0.75% 0.77% 0.54% (2.6) 38.9
OTHER PERIOD-END STATISTICS
(Dollars in thousands, unaudited)
Sound Community Bank:
Loan to deposit ratio 100.75% 105.87% 102.14% (4.8)% (1.4)%
Noninterest-bearing deposits / total deposits 14.90 13.63 12.19 9.3 22.2
Leverage ratio 10.71 9.99 10.14 7.2 5.6
Common Equity Tier 1 (“CET1”) risk-based capital ratio(1) 13.04 12.02 12.12 8.5 7.6
Tier 1 risk-based capital ratio 13.04 12.02 12.12 8.5 7.6
Total risk-based capital ratio 14.15 13.07 13.21 8.3 7.1
Total risk-weighted assets $453,216 $477,548 $447,038 (5.1) 1.4
Sound Financial Bancorp, Inc. :
Average total assets for the quarter 577,237 575,651 535,271 0.3% 7.8%
Average total equity for the quarter $61,302 $59,496 $55,037 3.0% 11.4%

________

(1) Under FDIC regulations, the regulatory capital requirements to be considered well capitalized are 5% for Leverage-based capital, 6.5% for CETI, 8% for Tier 1 risk-based capital and 10% for total risk-based capital.

Media: Laurie Stewart President/CEO (206) 448-0884 x306 Financial: Matt Deines EVP/CFO (206) 448-0884 x305

Source:Sound Financial Bancorp, Inc.