Sound Financial Bancorp, Inc. (Nasdaq: SFBC) reported financial results for the third quarter and nine months ended September 30, 2026. The company reported net income of $2.3 million for the third quarter of 2026, or $0.90 diluted earnings per share. This represents a decrease compared to the prior quarter, where net income was $2.5 million, or $0.98 diluted earnings per share. However, year-to-date earnings increased by 30.5% compared to the prior year.
For the quarter ended September 30, 2026, total assets decreased by $23.1 million, or 2.2%, to $1.04 billion. Total deposits decreased by $24.2 million, or 2.6%, to $906.7 million. The company noted that loans held-for-portfolio decreased by $14.0 million, or 1.6%, to $878.0 million. Despite the decline in loan balances, the company recorded a release of provision for credit losses of $282 thousand for the quarter.
Net interest margin (NIM) for the quarter was 3.76%, an increase from 3.74% in the prior quarter and 3.48% in the prior year. The average cost of deposits declined to 2.11% from 2.15% in the prior quarter. The company also reported that total nonperforming loans increased to $8.5 million, or 0.97% of total loans, from $8.1 million in the prior quarter.
In other company news, the Board of Directors declared a cash dividend of $0.21 per share on the company's common stock. The dividend is payable on November 20, 2026, to stockholders of record as of the close of business on November 6, 2026.
