Start here if you're new
what it is
It takes local deposits and turns them into home, real estate, consumer, and business loans across seven Washington branches.
how it gets paid
Last year Sound Financial made $57M in revenue. one-to-four family mortgages was the main engine at $17M, or 30% of sales.
what just happened
The latest quarter printed $1.90 EPS on $43M of revenue, a huge jump from the prior-year quarter.
At a glance
B+ balance sheet — decent shape, but not bulletproof
55/100 earnings predictability — expect surprises
16.7x trailing p/e — the market's not buying it — or you found a deal
2.0% dividend yield — cash in your pocket every quarter
$1.80 fy2024 eps est
xvary composite: 59/100 — below average
What they do
It takes local deposits and turns them into home, real estate, consumer, and business loans across seven Washington branches.
This is a neighborhood bank with 7 Washington branches and 108 employees, not a coast-to-coast lender trying to win on ads. That matters because community banking runs on trust and proximity. Your checking account, mortgage, and business line often sit in one place, and moving all three is a hassle.
How they make money
$57M
annual revenue
one-to-four family mortgages
$17M
commercial real estate and multifamily
$16M
construction and land loans
$8M
commercial business loans
$9M
consumer loans and other banking income
$7M
The products that matter
deposits and loans
traditional banking
$34.6M revenue engine
this is the core business. it produced $34.6M in net interest income and drove the bank's $2.2M quarterly net income.
89% of revenue
mortgage servicing
mortgage servicing rights
$112M portfolio
the $112M servicing portfolio adds fee exposure, but it also ties a slice of value to rate moves. lower rates can help originations and hurt servicing economics at the same time. welcome to banking.
fee income support
other fee income
non-interest income
$4.2M total
this bucket is only $4.2M versus $34.6M from spread income. if you want a bank insulated from rates, this is not that setup.
11% of revenue
Key numbers
$1.80
FY2024 EPS
That is the cleanest read on current earnings power, and it sits 26.8% below trailing EPS of $2.46.
16.7x
trailing p/e
You are paying a market-like multiple for a micro-cap bank with slower historical earnings growth of 1.5%.
$37M
long-term debt
Debt equals 26% of capital, which is fine until funding costs rise and earnings already look thinner.
95
price stability
The stock has been steadier than the business, which is a weird but useful contrast for a small bank.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 2 — safer than 80% of stocks
- price stability 95 / 100
- long-term debt $37M (26% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SFBC right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The latest quarter printed $1.90 EPS on $43M of revenue, a huge jump from the prior-year quarter.
Quarterly EPS for FY2024 stepped up through the year from $0.30 to $0.74. That says the business stabilized late in the year after a softer start.
$43M
revenue
$1.90
eps
n/a
n/a
the number that mattered
$1.90 EPS matters because it nearly matches the entire FY2024 EPS of $1.80, showing how swingy small-bank quarters can get.
source: company earnings report, 2026
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What could go wrong
the top risk is net interest margin compression at sound community bank.
high
net interest margin pressure
$34.6M of $38.8M revenue comes from net interest income. when funding costs stay high or loan yields fail to keep up, most of the business feels it immediately.
this risk reaches roughly 89% of revenue.
med
ordinary returns on equity
a 6.76% return on equity means the bank is profitable, but not at a level that screams franchise strength. if that figure drifts lower, 16.7x earnings stops looking modest.
you are paying a full multiple for middling economics.
med
thin fee-income cushion
non-interest income is only $4.2M. that means there is not much fee revenue to offset a weak lending spread or slower mortgage activity.
only about 11% of revenue sits outside the core spread business.
low
ownership and liquidity pressure
68.9% institutional ownership in a $105M company can cut both ways. steady holders help. a few exits can move the stock more than fundamentals deserve.
small-cap bank liquidity is fine until it suddenly isn't.
with $34.6M of $38.8M revenue tied to net interest income, this is mostly a bet on spread stability. the rest is supporting cast.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
annual shareholder meeting
may 26, 2026 is the next scheduled meeting. the record date is march 31, 2026. you want any commentary on deposit costs, loan demand, and capital return.
metric
net interest income
$34.6M is the current baseline. if that number weakens again, the whole valuation conversation changes with it.
trend
return on equity
6.76% is not broken, but it is not enough to earn a premium. you want to see whether profitability is actually compounding or just surviving.
risk
ownership concentration
68.9% institutional ownership matters more in a $105M stock than it does in a megacap. a few funds moving around can overwhelm the tape.
Analyst rankings
earnings predictability
55 / 100
middle of the road. in human-speak, quarterly results are stable enough to follow but not stable enough to coast on.
balance sheet strength
B+
good, not elite. you are not staring at a distressed bank, but you are also not paying for a fortress franchise.
risk rank
2
safer than 80% of stocks. that mostly speaks to stability, not upside.
source: institutional data
Institutional activity
institutional ownership data for SFBC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$44
current price
n/a
target midpoint · n/a from current
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