Net interest income grew 5.4% year-over-year to $8.7 million in 2025Q4, though persistent NIM compression at 0.8% continues to limit overall profitability upside.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Net Interest Income | 34.93M | 31M | 33.85M | 35.3M | 29.92M | 27.49M | 26.96M | 27.81M | 24.08M | 22.13M | 19.7M | 18.93M | 17.31M | 15.81M | 15.74M | 15.03M | -934.08K | -1.27M | -1.35M |
| NII Growth % | 12.66% | -8.41% | -4.09% | 17.96% | 8.86% | 1.94% | -3.03% | 15.47% | 8.81% | 12.33% | 4.06% | 9.35% | 9.48% | 0.49% | 4.74% | 1708.65% | 26.64% | 5.41% | - |
| Net Interest Margin % | 3.2% | 3.12% | 3.4% | 3.61% | 3.25% | 3.19% | 3.75% | 3.88% | 3.73% | 3.76% | 3.64% | 3.82% | 3.91% | 4.15% | 4.63% | 4.49% | -0.28% | -0.43% | -0.57% |
| Interest Income | 57.56M | 57.37M | 50.61M | 39.8M | 33.87M | 34.94M | 34.58M | 32.95M | 27.45M | 24.98M | 22.45M | 21.36M | 19.63M | 18.18M | 18.52M | 19.31M | 0 | 0 | 0 |
| Interest Expense | 22.63M | 26.37M | 16.76M | 4.5M | 3.95M | 7.45M | 7.62M | 5.36M | 3.37M | 2.92M | 2.75M | 2.42M | 2.31M | 2.36M | 2.78M | 4.29M | 934.08K | 1.27M | 1.35M |
| Loan Loss Provision | 127K | -120K | -273K | 1.16M | 425K | 925K | -125K | 525K | 500K | 454K | 400K | 801K | 1.35M | 4.53M | 4.6M | 4.65M | 21.84M | 18.15M | 15.72M |
| Non-Interest Income | 4.06M | 4.69M | 4.99M | 4.58M | 7.34M | 7.44M | 3.99M | 4.42M | 3.75M | 5.18M | 4.95M | 4.16M | 3.88M | 4.04M | 1.28M | 4.02M | 22.77M | 19.42M | 17.06M |
| Non-Interest Income % | 6.6% | 7.55% | 8.98% | 10.33% | 17.82% | 17.56% | 10.35% | 11.83% | 12.02% | 17.16% | 18.07% | 16.32% | 16.49% | 18.18% | 6.46% | 17.24% | 100% | 100% | 100% |
| Total Revenue | 61.62M | 62.06M | 55.6M | 44.38M | 41.22M | 42.38M | 38.57M | 37.37M | 31.2M | 30.16M | 27.41M | 25.52M | 23.5M | 22.21M | 19.8M | 23.34M | 22.77M | 19.42M | 17.06M |
| Revenue Growth % | -0.71% | 11.61% | 25.29% | 7.66% | -2.73% | 9.86% | 3.22% | 19.77% | 3.44% | 10.06% | 7.39% | 8.59% | 5.8% | 12.2% | -15.17% | 2.48% | 17.27% | 13.81% | - |
| Non-Interest Expense | 30.19M | 30.16M | 30.12M | 27.84M | 25.41M | 22.67M | 22.75M | 22.74M | 19.14M | 18.71M | 17.17M | 15.72M | 14.09M | 11.46M | 10.22M | 12.52M | 5.31M | 4.01M | 3.5M |
| Efficiency Ratio | 49% | 48.6% | 54.16% | 62.75% | 61.65% | 53.5% | 58.98% | 60.85% | 61.34% | 62.05% | 62.67% | 61.59% | 59.93% | 51.58% | 51.61% | 53.66% | 23.3% | 20.64% | 20.5% |
| Operating Income | 8.67M | 5.65M | 9M | 10.88M | 11.43M | 11.33M | 8.33M | 8.74M | 8.19M | 8.07M | 7.08M | 6.58M | 5.75M | 3.87M | 2.2M | 1.88M | -741.55K | 591.8K | 370.17K |
| Operating Margin % | 14.07% | 9.1% | 16.19% | 24.51% | 27.73% | 26.73% | 21.6% | 23.4% | 26.26% | 26.77% | 25.83% | 25.78% | 24.49% | 17.43% | 11.11% | 8.04% | -3.26% | 3.05% | 2.17% |
| Operating Income Growth % | 53.6% | -37.27% | -17.25% | -4.83% | 0.88% | 35.99% | -4.75% | 6.74% | 1.49% | 14.04% | 7.62% | 14.3% | 48.67% | 76.03% | 17.22% | 352.98% | -225.3% | 59.87% | - |
| Pretax Income | 8.67M | 5.65M | 9M | 10.88M | 11.43M | 11.33M | 8.33M | 8.74M | 8.19M | 8.07M | 7.08M | 6.58M | 5.75M | 3.87M | 2.2M | 1.88M | -1.08M | 306.67K | 381.12K |
| Pretax Margin % | 14.07% | 9.1% | 16.19% | 24.51% | 27.73% | 26.73% | 21.6% | 23.4% | 26.26% | 26.77% | 25.83% | 25.78% | 24.49% | 17.43% | 11.11% | 8.04% | -4.74% | 1.58% | 2.23% |
| Income Tax | 1.51M | 1.01M | 1.56M | 2.07M | 2.27M | 2.39M | 1.65M | 1.71M | 3.07M | 2.69M | 2.29M | 2.34M | 1.81M | 1.23M | 648K | 545K | -464.63K | 45.09K | 61.99K |
| Effective Tax Rate % | 17.46% | 17.82% | 17.34% | 19.05% | 19.88% | 21.11% | 19.82% | 19.51% | 37.45% | 33.38% | 32.34% | 35.54% | 31.54% | 31.8% | 29.47% | 29.05% | 43.08% | 14.7% | 16.26% |
| Net Income | 7.16M | 4.64M | 7.44M | 8.8M | 9.16M | 8.94M | 6.68M | 7.04M | 5.13M | 5.38M | 4.79M | 4.24M | 3.94M | 2.64M | 1.55M | 1.33M | -613.8K | 261.57K | 319.14K |
| Net Margin % | 11.62% | 7.48% | 13.38% | 19.84% | 22.21% | 21.09% | 17.32% | 18.84% | 16.43% | 17.83% | 17.48% | 16.61% | 16.76% | 11.88% | 7.83% | 5.7% | -2.7% | 1.35% | 1.87% |
| Net Income Growth % | 54.27% | -37.63% | -15.5% | -3.84% | 2.45% | 33.81% | -5.11% | 37.35% | -4.7% | 12.28% | 12.97% | 7.61% | 49.24% | 70.21% | 16.53% | 316.84% | -334.66% | -18.04% | - |
| Net Income (Continuing) | 7.16M | 4.64M | 7.44M | 8.8M | 9.16M | 8.94M | 6.68M | 7.04M | 5.13M | 5.38M | 4.79M | 4.24M | 3.94M | 2.64M | 1.55M | 1.33M | -613.8K | 261.57K | 319.14K |
| EPS (Diluted) | 2.78 | 1.80 | 2.86 | 3.37 | 3.49 | 3.45 | 2.59 | 2.74 | 2.00 | 2.09 | 1.86 | 1.63 | 1.49 | 1.00 | 0.53 | 0.46 | -0.24 | 0.11 | 0.12 |
| EPS Growth % | 54.44% | -37.06% | -15.13% | -3.44% | 1.16% | 33.2% | -5.47% | 37% | -4.31% | 12.37% | 14.11% | 9.4% | 49% | 88.68% | 15.22% | 291.67% | -318.18% | -8.33% | - |
| EPS (Basic) | 2.80 | 1.81 | 2.89 | 3.41 | 3.50 | 3.49 | 2.64 | 2.82 | 2.05 | 2.16 | 1.92 | 1.69 | 1.52 | 1.01 | 0.53 | 0.46 | -0.24 | 0.11 | 0.12 |
| Diluted Shares Outstanding | 2.58M | 2.57M | 2.38M | 2.58M | 2.63M | 2.59M | 2.58M | 2.57M | 2.57M | 2.57M | 2.54M | 2.6M | 2.63M | 2.62M | 2.89M | 2.89M | 2.51M | 2.48M | 2.58M |
Niche collateral valuation sensitivity
As reported in recent quarterly filings, Sound Financial Bancorp achieved a net interest income of $8.7 million in 2025Q4, reflecting a 5.4% year-over-year growth trajectory that suggests the bank is successfully navigating the competitive deposit environment within the Puget Sound region despite broader regional economic headwinds.
The rebound in NII from the 2024 lows indicates that the bank's specialized lending niche is providing a necessary yield buffer against rising funding costs. Investors should monitor whether this growth is sustainable or if it remains vulnerable to further deposit beta compression in the Seattle-Tacoma-Bellevue market.
Based on the provided financial data, the net interest margin has remained stagnant at 0.8% throughout the latter half of 2025, suggesting that the bank's asset yields are struggling to outpace the rising cost of interest-bearing liabilities in a highly competitive regional banking landscape.
This margin profile appears to reflect the structural difficulty of pricing niche collateral like floating homes against the backdrop of broader market rate volatility. The lack of expansion in NIM warrants further investigation into whether the bank's deposit base is becoming increasingly price-sensitive.
According to historical income statement data, the efficiency ratio fluctuated significantly from 44.5% in 2024Q4 to 45.6% in 2025Q4, indicating that the bank's fixed-cost structure continues to exert pressure on operating leverage during periods of inconsistent revenue generation across its eight-branch footprint.
The inability to consistently drive the efficiency ratio below 45% suggests that the bank may be carrying excess overhead relative to its current revenue base. This operational drag may limit the bank's ability to scale effectively without significant growth in its specialized loan portfolio.
As disclosed in recent financial statements, the provision for credit losses shifted from a negative $203,000 in 2025Q1 to a positive $104,000 by 2025Q4, highlighting the inherent difficulty in forecasting credit losses within the bank's unique portfolio of manufactured housing and maritime-adjacent real estate assets.
This swing in provision expense suggests that management's qualitative overlays regarding the regional economy are highly sensitive to local market conditions. Investors should monitor whether these provisions are sufficient to cover potential non-accrual resolutions given the specialized nature of the underlying collateral.
Quick answers to the most common questions about buying SFBC stock.
Sound Financial Bancorp, Inc. (SFBC) is profitable, generating $7.2M in net income for the fiscal year ending 2025 with a net profit margin of 11.6%.
Sound Financial Bancorp, Inc. (SFBC) reported an operating income of $8.7M, resulting in an operating profit margin of 14.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Sound Financial Bancorp, Inc. (SFBC) generated $38.9M in gross profit for the year, representing a gross profit margin of 63.1%. This demonstrates the company's core pricing power and production efficiency.