This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sound Financial Bancorp, Inc. Earns $1.1 Million For The Second Quarter Of 2013, Posting Its Fourteenth Consecutive Quarter Of Profitability

Deposits totaled $319.5 million at June 30, 2013, compared to $313.7 million at June 30, 2012, and $312.1 million at December 31, 2012.  Borrowings from the FHLB of Seattle increased to $40.5 million at June 30, 2013, compared to $8.2 million at June 30, 2012 and $21.9 million at December 31, 2012.

The total cost of deposits decreased 7 basis points to 0.62% during the second quarter of 2013, from 0.69% during the second quarter of 2012, and decreased 2 basis points from 0.64% during the first quarter of 2013. The total cost of borrowings decreased 218 basis points to 0.59% during the second quarter of 2013, from 2.77% during the second quarter of 2012, and decreased 34 basis points from 0.93% during the first quarter of 2013.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles in the United States of America, this press release contains certain non-GAAP financial measures. Sound Financial Bancorp, Inc. believes that certain non-GAAP financial measures provide investors with information useful in understanding Umpqua's financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. 

Management believes tangible common equity and the tangible common equity ratio are meaningful measures of capital adequacy. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding mortgage servicing rights). Tangible assets are total assets less goodwill and other intangible assets, net (excluding mortgage servicing rights). The tangible common equity ratio is calculated as tangible common shareholders' equity divided by tangible assets.

The following table provides reconciliations of ending shareholders' equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).

       
(Dollars in thousands, except per share data) Jun 30, 2013 Dec 31, 2012 Jun 30, 2012
       
Total shareholders' equity $ 45,497 $ 43,457 $ 30,042
Subtract:      
Goodwill and other intangible assets, net 692 722 814
Tangible common shareholders' equity $ 44,805 $ 42,704 $ 29,228
       
Total assets $ 409,565 $ 381,044 $ 355,072
Subtract:      
Goodwill and other intangible assets, net 692 722 814
Tangible assets $ 408,873 $ 380,291 $ 354,258
       
Common shares outstanding at period end 2,587,544 2,587,544 2,587,760
       
Tangible common equity ratio 10.96% 11.23% 8.25%
Tangible book value per common share $ 17.31 $ 16.50 $ 11.29

Sound Financial Bancorp, Inc., a bank holding company established in August 2012, is the parent company of Sound Community Bank, established in 1953 and headquartered in Seattle, Washington with full-service branches in Seattle, Tacoma, Mountlake Terrace, Sequim and Port Angeles. Sound Community Bank is a Fannie Mae Approved Lender and Seller/Servicer with an additional Loan Production Office in Madison Park neighborhood of Seattle, Washington. For more information, please visit www.soundcb.com .

Forward Looking Statement Disclaimer

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release 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 for 2013 and beyond 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.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements . Factors which could cause actual results to differ materially, 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.

     
  For the Quarter Ended: Percent Change From:
CONSOLIDATED INCOME STATEMENTS June 30, March 31, June 30, March 31, June 30,
(in $000's, unaudited) 2013 2013 2012 2013 2012
Interest income $ 4,886 $ 4,636 $ 4,598 5.4% 6.3%
Interest expense 544 569 588 -4.4% -7.5%
Net interest income before provision for loan losses 4,342 4,067 4,010 6.8% 8.3%
Provision for loan losses 450 250 1,100 80.0% -59.1%
Net interest income after provision for loan losses 3,892 4,067 2,910 2.0% 33.7%
Noninterest income:          
Service charges and fee income 551 598 513 -7.9% 19.8%
Increase in cash surrender value of life insurance 74 78 52 -5.1% 42.3%
Mortgage servicing income 184 127 21 44.9% 776.2%
Gain on sale of loans 310 447 308 -30.6% 0.6%
Other noninterest income 239 116 (108) 106.0% -321.3%
Total noninterest income 1,358 1,366 786 -0.6% 72.8%
           
Noninterest expense:          
Salaries and employee benefits 1,705 1,687 1,423 1.1% 19.8%
Operations expense 991 967 728 2.5% 36.1%
Data processing 318 288 262 10.4% 21.4%
Losses and expenses related to OREO 164 675 22 -75.7 645.5%
Other noninterest expense 391 399 393 -2.0% -0.5%
Total noninterest expense 3,569 4,016 2,828 -11.1% 26.2%
Income before income taxes 1,681 1,167 868 44.0% 93.7%
Income tax expense 539 370 275 45.7% 96.0%
Net income $ 1,142 $ 797 $ 593 43.3% 92.6%
           
PER COMMON SHARE DATA          
(unaudited)          
Basic earnings per share $ 0.44 $ 0.31 $ 0.23 41.9% 100.0%
Diluted earnings per share $ 0.43 $ 0.30 $ 0.23 43.3% 95.5%
Common shares outstanding at period-end 2,587,544 2,587,544 2,587,760 0.0% 0.0%
Book value per share $ 17.58 $ 17.13 $ 11.61 2.6% 51.4%
Tangible book value per share $ 17.31 $ 16.85 $ 11.29 2.7% 53.3%
           
KEY FINANCIAL RATIOS          
(unaudited)          
Annualized return on average equity 10.11% 7.24% 7.90% 39.6% 28.0%
Annualized return on average tangible equity 10.28% 7.36% 8.12% 39.7% 26.6%
Annualized return on average assets 1.14% 0.81% 0.68% 40.7% 67.6%
Net interest margin 4.68% 4.55% 5.24% 0.0% -13.2%
Efficiency ratio 59.74% 61.49% 58.51% -2.8% 2.1%
     
  Quarter Ended: Percent Change From:
CONSOLIDATED BALANCE SHEETS June 30, December 31, June 30, December 31, June 30,
(in $000's, unaudited) 2013 2012 2012 2012 2012
ASSETS          
Cash and cash equivalents $ 11,760 $ 12,727 $ 19,400 -7.6% -39.4%
Securities available-for-sale, at fair value 16,965 22,900 9,033 -25.9% 87.8%
FHLB stock, at cost 2,357 2,401 2,444 -1.8% -3.6%
Loans held-for-sale 2,078 1,725 1,053 -0.2% 97.3%
Loans:          
One- to four- family residential 101,406 94,059 94,604 7.8% 7.2%
Home equity 35,055 35,364 38,175 -0.9% -8.2%
Commercial and multifamily 149,157 133,620 111,804 11.6% 33.4%
Construction and land 38,409 25,458 20,564 50.9% 86.8%
Manufactured homes 14,682 16,232 17,463 -9.5% -15.9%
Other consumer 9,265 8,650 9,861 7.1% -6.0%
Commercial business 11,802 14,193 14,556 -16.8% -18.9%
Total loans 359,776 327,576 307,027 9.8% 17.2%
Deferred loan (fees) costs, net (1,117) (832) (633) 34.3% 76.5%
Total loans, including deferred fees and costs 358,659 326,744 306,394 9.8% 17.1%
Allowance for loan losses (4,129) (4,248) (4,449) -2.8% -7.2%
Loans, net 354,530 322,496 301,945 9.9% 17.4%
Accrued interest receivable 1,333 1,280 1,234 4.1% 8.0%
Bank-owned life insurance 10,872 7,220 7,099 50.6% 53.1%
OREO and ORA, net 1,190 2,503 2,839 -52.5% -58.1%
Mortgage servicing rights, at fair value 2,670 2,306 2,558 15.8% 4.4%
Premises and equipment, net 2,233 2,256 2,233 -1.0% 0.0%
Other assets 3,577 3,230 5,234 10.7% -31.7%
Total assets $ 409,565 $ 381,044 $ 355,072 7.5% 15.3%
           
LIABILITIES AND SHAREHOLDERS' EQUITY  
Liabilities:          
Demand deposit, noninterest-bearing $ 33,970 $ 35,234 $ 36,123 -3.6% -6.0%
Demand deposit, interest-bearing 27,966 28,540 25,765 -2.0% 8.4%
Savings and money market 113,388 113,323 114,797 0.1% -1.2%
Time deposits 144,190 134,986 137,044 6.8% 5.2%
Total deposits 319,514 312,083 313,729 2.4% 1.8%
Borrowings 40,542 21,864 8,185 85.4 395.3%
Accrued interest payable and other liabilities 4,012 3,640 3,116 10.2% 28.8%
Total liabilities 364,068 337,587 325,030 7.8% 12.0%
             
Shareholders' Equity:          
Common stock 26 26 30 0.0% -13.3%
Paid-in capital 24,745 24,789 12,005 -0.2% 106.1%
Unearned shared – ESOP (1,598) (1,598) (693) 0.0% 130.6%
Retained earnings 22,675 20,736 19,235 5.3% 17.9%
Accumulated other comprehensive loss (351) (496) (535) -22.3% -34.4%
Total shareholders' equity 45,497 43,457 30,042 2.6% 51.4%
Total liabilities and shareholders' equity $ 409,565 $ 381,044 $ 355,072 4.8% 15.3%
     
  Quarter Ended: Percent Change From:
  June 30, December 31, June 30, December 31, June 30,
  2013 2012 2012 2012 2012
CREDIT QUALITY DATA          
(in $000's, unaudited)          
Nonaccrual loans $ 1,481   $ 3,003 $ 3,830 -50.7% -61.3%
Nonperforming restructured and loans over 90 days past due and on accrual 515 909 2,947 -43.3% -82.5%
Total nonperforming loans 1,996 3,912 6,777 -49.0% -70.5%
Foreclosed assets 1,190 2,503 2,839 -52.5% -58.1%
Total nonperforming assets $ 3,186 $ 6,415 $ 9,616 -50.3% -66.9%
Restructured loans on accrual $ 6,067 $ 5,614 $5,408 8.0% 12.2%
Net charge-offs during the quarter $ (367) $ (936) $ (1,001) -59.5% -62.1%
Provision for loan losses during the quarter $ 450 $ 850 $ 1,100 -47.1% -59.1%
Allowance for loan losses $ 4,129 $ 4,248 $ 4,449 -2.8% -7.2%
Classified assets $ 11,384 $ 11,169 $ 14,677 1.9% -22.4%
Allowance for loan losses to total loans 1.15% 1.30% 1.45% -11.5% -20.7%
Allowance for loan losses to total nonperforming loans 206.86% 110.88% 65.65% 86.6% 215.1%
Nonperforming assets to total assets 0.78% 1.68% 2.71% -53.1% -71.3%
Nonperforming loans to total loans 0.56% 1.20% 2.21% -53.2% -74.8%
           
OTHER PERIOD-END STATISTICS          
(in $000's, unaudited)          
Sound Community Bank:          
Tangible equity $ 44,805 $ 42,704 $ 29,228 4.9% 53.3%
Shareholders' equity / total assets 11.1% 11.4% 8.5% -2.6% 30.6%
Tangible equity / tangible assets 11.0% 11.2% 8.3% -1.8% 32.5%
Loan to deposit ratio 112.3% 104.7% 97.7% 7.2% 14.9%
Noninterest-bearing deposits / total deposits 10.6% 11.3% 11.5% -6.2% -7.8%
Total risk-based capital ratio 14.15% 14.60% 12.06% 14.4% 38.5%
Tier 1 risk-based capital ratio 12.90% 13.35% 10.81% 16.1% 43.4%
Leverage ratio 10.22% 10.12% 8.28% 13.6% 38.9%
CONTACT: Media:
         Laurie Stewart
         President/CEO
         (206) 448-0884 x306
         
         Financial:
         Matt Deines
         EVP/CFO
         (206) 448-0884 x305

5 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs