SEATTLE--(BUSINESS WIRE)--
Sound Financial Inc. (OTCBB:SNFL), holding company for Sound Community
Bank, today announced its third consecutive quarter of improving
earnings.
The Company reported net income of $0.14 per share, or $421,000 for the
quarter ended September 30, 2010. This compares to net income of $0.10
per share, or $278,000 in the previous quarter and net income of $0.03
per share or $76,000 for the third quarter of 2009.
Highlights for the Quarter:
- Net Interest Margin increased to 4.93% for the quarter ended 9/30/10
- Efficiency Ratio decreased to 64.76% for the quarter ended 9/30/10
- Non-Performing Loans to Total Gross Loans decreased to 0.99% at 9/30/10
- The Bank remains “Well Capitalized” with Tier 1 Capital of 7.44% and
Total Risk Based Capital of 11.31% at 9/30/10.
Laurie Stewart, President and CEO said, “While a sustained economic
recovery continues to remain elusive, we are pleased with our third
quarter results and the steady progress we’ve made each quarter this
year. Our focus remains on taking care of our clients, as we balance our
growth with strong capital levels.”
|
|
|
| As of |
| | 9/30/2010 |
| 6/30/2010 |
| 9/30/2009 |
| | (In thousands) |
Selected Consolidated Financial Condition
Data: | | | | | | |
|
Total assets
| |
$
|
345,775
| |
$
|
340,926
| |
$
|
353,760
|
|
Loans receivable, net
| | |
304,792
| | |
305,450
| | |
284,615
|
|
Loans held for sale
| | |
1,836
| | |
1,096
| | |
2,666
|
|
Mortgage-backed securities available for sale (at fair value)
| | |
4,655
| | |
4,328
| | |
35,694
|
|
Federal Home Loan Bank stock
| | |
2,444
| | |
2,444
| | |
2,444
|
|
Bank owned life insurance
| | |
6,663
| | |
6,596
| | |
6,399
|
|
Repossessed assets and real estate owned
| | |
3,313
| | |
1,847
| | |
822
|
|
Deposits
| | |
285,777
| | |
285,339
| | |
300,456
|
|
Federal Home Loan Bank advances
| | |
30,210
| | |
26,617
| | |
25,000
|
|
Stockholders’ Equity
| | |
26,175
| | |
25,299
| | |
25,480
|
|
|
|
|
|
| Quarter Ended |
| | 9/30/2010 |
| 6/30/2010 |
| 9/30/2009 |
| | (In thousands) |
Selected Consolidated Operating Data: | | | | | | |
|
Total interest income
| |
$
|
4,930
| | |
$
|
4,924
| | |
$
|
4,943
| |
|
Total interest expense
| |
|
1,043
|
| |
|
1,152
|
| |
|
1,803
|
|
|
Net interest income
| | |
3,887
| | | |
3,772
| | | |
3,140
| |
|
Provision for loan losses
| |
|
950
|
| |
|
775
|
| |
|
950
|
|
|
Net interest income after provision for loan losses
| | |
2,937
| | | |
2,997
| | | |
2,190
| |
|
Fees and service charges
| | |
558
| | | |
550
| | | |
545
| |
|
Gain (loss) on sale of loans
| | |
343
| | | |
58
| | | |
(20
|
)
|
|
Gain (loss) on sale of assets
| | |
(202
|
)
| | |
(41
|
)
| | |
(34
|
)
|
|
Gain on sale of securities
| | |
-
| | | |
(11
|
)
| | |
-
| |
|
Other than temporary impairment on securities
| | |
(47
|
)
| | |
(51
|
)
| | |
-
| |
|
Fair value change in mortgage servicing rights
| | |
(284
|
)
| | |
(210
|
)
| | |
-
| |
|
Other non-interest income
| |
|
142
|
| |
|
220
|
| |
|
477
|
|
|
Total non-interest income
| | |
510
| | | |
515
| | | |
968
| |
|
Total non-interest expense
| |
|
2,848
|
| |
|
3,134
|
| |
|
3,069
|
|
|
Income before provision (benefit) for income taxes
| | |
599
| | | |
378
| | | |
89
| |
|
Provision (benefit) for income taxes
| |
|
178
|
| |
|
100
|
| |
|
13
|
|
|
Net income
| |
|
421
|
| |
|
278
|
| |
|
76
|
|
| | | | | |
|
Selected Financial Ratios and Other Data: | | | | | | |
| Performance ratios:
| | | | | | |
|
Return on assets (ratio of net income to average total assets)
| | |
0.49
|
%
| | |
0.32
|
%
| | |
0.09
|
%
|
|
Return on equity (ratio of net income to average equity)
| | |
6.67
|
%
| | |
4.30
|
%
| | |
1.19
|
%
|
|
Net interest margin
| | |
4.93
|
%
| | |
4.77
|
%
| | |
3.98
|
%
|
|
Non-interest income to operating revenue
| | |
11.60
|
%
| | |
12.02
|
%
| | |
23.57
|
%
|
|
Non-interest expense to average total assets
| | |
3.35
|
%
| | |
3.66
|
%
| | |
3.62
|
%
|
|
Average interest-earning assets to average interest-bearing
liabilities
| | |
100.91
|
%
| | |
103.34
|
%
| | |
110.19
|
%
|
|
Efficiency ratio
| | |
64.76
|
%
| | |
73.11
|
%
| | |
74.71
|
%
|
| | | | | |
|
| Asset quality ratios:
| | | | | | |
|
Non-performing assets to total assets
| | |
3.45
|
%
| | |
3.54
|
%
| | |
2.11
|
%
|
|
Non-performing loans to gross loans
| | |
0.99
|
%
| | |
1.36
|
%
| | |
1.14
|
%
|
|
Allowance for loan losses to non-performing loans
| | |
130.00
|
%
| | |
96.07
|
%
| | |
66.23
|
%
|
|
Allowance for loan losses to gross loans
| | |
1.27
|
%
| | |
1.29
|
%
| | |
0.88
|
%
|
|
Net charge-offs to average loans outstanding
| | |
1.32
|
%
| | |
1.04
|
%
| | |
0.43
|
%
|
| | | | | |
|
| Consolidated capital ratios:
| | | | | | |
|
Equity to total assets at end of period
| | |
7.57
|
%
| | |
7.42
|
%
| | |
7.23
|
%
|
|
Average equity to average assets
| | |
7.55
|
%
| | |
7.43
|
%
| | |
7.56
|
%
|
|
|
|
|
|
| Nine Months Ended |
| | 9/30/2010 |
| 9/30/2009 |
| | (In thousands) |
Selected Consolidated Operating Data: | | | | |
|
Total interest income
| |
$
|
14,624
| | |
$
|
14,219
| |
|
Total interest expense
| |
|
3,362
|
| |
|
5,562
|
|
|
Net interest income
| | |
11,262
| | | |
8,657
| |
|
Provision for loan losses
| |
|
3,150
|
| |
|
2,325
|
|
|
Net interest income after provision for loan losses
| | |
8,112
| | | |
6,332
| |
|
Fees and service charges
| | |
1,638
| | | |
1,535
| |
|
Gain on sale of loans
| | |
465
| | | |
56
| |
|
Loss on sale of assets
| | |
(291
|
)
| | |
(589
|
)
|
|
Gain on sale of securities
| | |
64
| | | |
-
| |
|
Other than temporary impairment on securities
| | |
(99
|
)
| | |
-
| |
|
Fair value change in mortgage servicing rights
| | |
(197
|
)
| | |
-
| |
|
Other non-interest income
| |
|
581
|
| |
|
1,070
|
|
|
Total non-interest income
| | |
2,161
| | | |
2,072
| |
|
Total non-interest expense
| |
|
9,245
|
| |
|
8,718
|
|
|
Income (loss) before provision (benefit) for income taxes
| | |
1,028
| | | |
(314
|
)
|
|
Provision (benefit) for income taxes
| |
|
272
|
| |
|
(162
|
)
|
|
Net income (loss)
| |
|
756
|
| |
|
(152
|
)
|
| | | | | | | |
|
Selected Financial Ratios and Other Data: | | | | |
| Performance ratios:
| | | | |
|
Return on assets (ratio of net income to average total assets)
| | |
0.30
|
%
| | |
(0.06
|
)%
|
|
Return on equity (ratio of net income to average equity)
| | |
3.95
|
%
| | |
(0.79
|
)%
|
|
Net interest margin
| | |
4.79
|
%
| | |
3.90
|
%
|
|
Non-interest income to operating revenue
| | |
16.10
|
%
| | |
19.31
|
%
|
|
Non-interest expense to average total assets
| | |
3.62
|
%
| | |
3.66
|
%
|
|
Average interest-earning assets to average interest-bearing
liabilities
| | |
100.97
|
%
| | |
106.59
|
%
|
|
Efficiency ratio
| | |
68.88
|
%
| | |
81.26
|
%
|
|
|
Sound Financial Inc. is the holding company for Sound Community Bank, a
full-service bank, providing personal and business banking services in
communities across the greater Puget Sound region. The Seattle-based
company operates five full-service banking offices in King, Pierce,
Snohomish and Clallam Counties, and is on the web at www.soundcb.com.
Forward-Looking Statements
This report contains statements that are not historical or current fact
and constitute forward-looking statements. In some cases, you can
identify these statements by words such as "may", "might", "will",
"should", "expect", "plan", "intend", "anticipate", "believe",
"estimate", "predict", "potential", or "continue", the negative of these
terms and other comparable terminology. 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 there are or may be important
factors 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. Unless required by law, we
undertake no obligation to publicly update or revise any forward-looking
statement to reflect circumstances or events after the date of this
press release.
Results of operations and business are subject to various factors which
could cause actual results to differ materially from these estimates and
most other statements that are not historical in nature. These factors
include, but are not limited to, general and local economic conditions,
changes in interest rates, deposit flows, demand for mortgage, consumer
and other loans, real estate values, competition, changes in accounting
principles, policies or guidelines, changes in legislation or
regulation, and other economic, competitive, governmental, regulatory
and technological factors affecting our operations, pricing, products
and services.
Source: Sound Financial Inc.
Contact:
Sound Financial Inc.
Media:
Scott Boyer, 206-448-0884 x-312
or
Financial:
Matt
Deines, 206-448-0884 x-305