The average cost of FHLB advances was 4.40% for the quarter ended December 31, 2025, up from 4.31% for the quarter ended December 31, 2024, due to a higher rate on the remaining debt after the repayment of $15.0 million in advances during the fourth quarter of 2024, partially offset by the repayment of $15.0 million of advances during the fourth quarter of 2025. 2024 Allowance for Credit Losses on Loans Balance at beginning of period $ 8,564 $ 8,536 $ 8,393 $ 8,499 $ 8,585 Provision for (release of) provision for credit losses during the period 68 65 164 (85 ) (73 ) Net charge-offs during the period (27 ) (37 ) (21 ) (21 ) (13 ) Balance at end of period $ 8,605 $ 8,564 $ 8,536 $ 8,393 $ 8,499 Allowance for Credit Losses on Unfunded Loan Commitments Balance at beginning of period $ 112 $ 122 $ 116 $ 234 $ 147 Provision for (release of) credit losses during the period 36 (10 ) 6 (118 ) 87 Balance at end of period 148 112 122 116 234 Allowance for Credit Losses $ 8,753 $ 8,676 $ 8,658 $ 8,509 $ 8,733 Allowance for credit losses on loans to total loans 0.95 % 0.94 % 0.94 % 0.95 % 0.94 % Allowance for credit losses to total loans 0.97 % 0.95 % 0.96 % 0.96 % 0.97 % Allowance for credit losses on loans to total nonperforming loans 148.82 % 315.20 % 253.59 % 86.95 % 113.46 % Allowance for credit losses to total nonperforming loans 151.38 % 319.32 % 257.22 % 88.15 % 116.58 % Factors that could cause the Company's actual results to differ materially from those express 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 .
Author: Sound Financial Bancorp, Inc.
Published at: 2026-01-27 23:19:00
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