Sound Financial Bancorp Posts Strong Q4 Results, Raises Dividend

Sound Financial Bancorp ( (SFBC) ) has provided an update.

On January 27, 2026, Sound Financial Bancorp reported improved fourth-quarter 2025 results, with net income rising to $2.2 million, or $0.87 per diluted share, up from $1.7 million in the prior quarter and $1.9 million a year earlier, driven largely by tight expense control and balance sheet optimization. Total assets grew 3.0% sequentially and 9.9% year over year to $1.09 billion, deposits rose 5.6% from the prior quarter and 13.3% from year-end 2024, and the loans-to-deposits ratio declined to 96%, reflecting stronger liquidity, even as loans held-for-portfolio were essentially flat. Net interest income dipped 3.1% from the third quarter but remained 5.4% above the prior-year level, while the net interest margin compressed sequentially to 3.36% but improved from 3.13% a year earlier. Noninterest income weakened and nonperforming loans more than doubled from the prior quarter to $5.8 million, though management emphasized these were well-secured credits and overall credit quality remained stable, with the allowance for credit losses at 0.95% of loans and coverage of nonperforming loans near 149%. Noninterest expense fell 10.9% from the third quarter and 3.1% year over year, underscoring operational efficiencies, and the bank ended 2025 with capital levels above regulatory requirements and a “well-capitalized” designation. The board also declared a cash dividend of $0.21 per share, payable on February 23, 2026 to shareholders of record on February 9, 2026, signaling confidence in earnings strength, balance sheet flexibility, and the institution’s capacity to fund an emerging commercial loan pipeline despite a sluggish mortgage market.

The most recent analyst rating on (SFBC) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Sound Financial Bancorp stock, see the SFBC Stock Forecast page.

Spark’s Take on SFBC Stock

According to Spark, TipRanks’ AI Analyst, SFBC is a Neutral.

Sound Financial Bancorp’s overall stock score is driven by its solid financial performance, characterized by consistent revenue growth and a stable balance sheet. However, technical analysis indicates a bearish trend, which weighs down the score. The valuation is moderate, providing some support to the stock’s attractiveness. The absence of earnings call data and corporate events means these factors do not influence the score.

To see Spark’s full report on SFBC stock, click here.

More about Sound Financial Bancorp

Sound Financial Bancorp, Inc., based in Seattle, is the holding company for Sound Community Bank, a community-focused depository institution offering loans and deposit services. The bank operates with an emphasis on managing funding costs, maintaining strong liquidity and capital, and supporting both mortgage and commercial lending activities in its markets.

Average Trading Volume: 5,971

Technical Sentiment Signal: Hold

Current Market Cap: $113M

For an in-depth examination of SFBC stock, go to TipRanks’ Overview page.