Sound Financial Bancorp reports Q1 EPS 30c vs. 83c last year

Reports Q1 net interest income $7.5M vs. $9.4M last year. “In the first quarter of 2024, we observed a notable stabilization in our net interest margin compression. We experienced a smaller increase in the cost of funding compared to the trends observed throughout 2023. Furthermore, the yield on our interest-earning assets continued to improve. However, with net interest margin compression persisting and reduced residential lending continuing, we will remain vigilant in managing our operating expenses,” remarked Laurie Stewart, CEO. “Despite ongoing wage pressures and contractual increases in areas such as data processing and services, the first quarter of 2024 exhibited only a marginal increase in operating expense compared to the same quarter in 2023. This underscores our commitment to rightsizing staffing for current growth and to leveraging efficiencies from strategic technology initiatives implemented over the past several years. Additionally, while we experienced an increase in nonperforming assets, we do not believe this is indicative of greater market trends. Rather, the increase mainly reflected specific borrower situations for a few real estate collateralized properties that are well-secured and being managed by our credit team.”