Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
The common stock of Sound Financial Bancorp is listed on The NASDAQ Capital Market under the symbol "SFBC." There were approximately 262 stockholders of record of our common stock at March 25, 2021.
Our cash dividend payout policy is reviewed regularly by management and the Board of Directors. Any dividends declared and paid in the future would depend upon a number of factors, including capital requirements, our financial condition and results of operations, tax considerations, statutory and regulatory limitations, and general economic conditions. No assurances can be given that any dividends will be paid or that, if paid, will not be reduced or eliminated in future periods. Our future payment of dividends may depend, in part, upon receipt of dividends from Sound Community Bank, which are restricted by federal regulations.
Equity Compensation Plan Information
The equity compensation plan information presented in "Part III. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters" of this Form 10-K is incorporated herein by reference.
Issuer Purchases of Equity Securities
On October 27, 2020, the Company announced that its Board of Directors authorized a stock repurchase program. Under this repurchase program, the Company may repurchase its outstanding shares in the open market in an amount up to $2.0 million, based on prevailing market prices, or in privately negotiated transactions, over a period beginning on October 28, 2020, continuing until the earlier of the completion of the repurchase or the next six months, depending upon market conditions. The Company’s Board of Directors also authorized management to enter into a trading plan with a registered broker-dealer in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, to facilitate repurchases of its common stock pursuant to the above-mentioned stock repurchase program.
The following table sets forth information with respect to our repurchases of our outstanding common shares during the three months ended December 31, 2020 :
Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximated Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)
October 1, 2020 - October 31, 2020 — $ — — $ 2,000,000
November 1, 2020 - November 30, 2020 2,342 29.36 2,342 1,931,000
December 1, 2020 - December 31, 2020 135 30.50 135 1,927,000
Total 2,477 $ 29.42 2,477 $ 1,927,000
(1) The Company may repurchase shares of its common stock from time-to-time in open market transactions. The timing, volume and price of purchases are made at our discretion, and are contingent upon our overall financial condition, as well as general market conditions.
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Table of Conten t s
Item 6. Selected Financial Data
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
The following table sets forth certain information concerning the Company's consolidated financial position and results of operations at and for the dates indicated and have been derived from the audited consolidated financial statements. The information below is qualified in its entirety by the detailed information included elsewhere herein and should be read along with Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Item 8. "Financial Statements and Supplementary Data." (In thousands)
December 31, 2020
2020 2019 2018
Selected Financial Condition Data:
Total assets $ 861,402 $ 719,853 $ 716,735
Total loans held for portfolio, net 607,363 614,247 613,769
Loans held-for-sale 11,604 1,063 1,172
Available-for-sale securities, at fair value 10,218 9,306 4,957
Bank-owned life insurance ("BOLI"), net 14,588 14,183 13,365
OREO and repossessed assets, net 594 575 575
FHLB stock, at cost 877 1,160 4,134
Total deposits 747,981 616,718 553,601
Borrowings — 7,500 84,000
Subordinated notes, net 11,592 — —
Stockholders' equity $ 85,484 $ 77,726 $ 71,627
Year Ended December 31,
2020 2019 2018
Selected Operations Data:
Total interest income $ 34,936 $ 34,581 $ 33,167
Total interest expense 7,450 7,617 5,360
Net interest income 27,486 26,964 27,807
Provision (recapture) for loan losses 925 (125) 525
Net interest income after provision (recapture) for loan losses 26,561 27,089 27,282
Service charges and fee income 1,905 1,954 1,876
Earnings on cash surrender value of BOLI 348 381 320
Mortgage servicing income 1,027 1,002 1,075
Fair value adjustment on mortgage servicing rights ("MSRs") (1,857) (760) (513)
Net gain on sale of loans 6,022 1,449 1,038
Other income — — 490
Total noninterest income 7,445 4,026 4,286
Salaries and benefits 12,083 12,402 12,775
Operations expense 5,461 5,905 5,472
Occupancy expense 1,881 2,060 2,139
Net losses and expenses on OREO and repossessed assets 5 35 86
Other noninterest expense 3,248 2,383 2,351
Total noninterest expense 22,678 22,785 22,823
Income before provision for income taxes 11,328 8,330 8,745
Provision for income taxes 2,391 1,651 1,706
Net income $ 8,937 $ 6,679 $ 7,039
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Table of Conten t s
Year Ended December 31,
2020 2019 2018
Selected Financial Ratios and Other Data:
Performance ratios :
Return on assets (ratio of net income to average total assets) 1.10 % 0.95 % 1.03 %
Return on equity (ratio of net income to average equity) 10.94 8.90 10.24
Dividend payout ratio 23.19 21.47 19.42
Interest rate spread information:
Average during period 3.26 3.74 4.06
End of period 3.21 3.83 4.11
Net interest margin (1)
3.57 4.06 4.28
Noninterest income to total net revenue (2)
21.31 12.99 13.35
Noninterest expense to average total assets 2.79 3.23 3.34
Average interest-earning assets to average interest-bearing liabilities 132.57 128.25 125.94
Efficiency ratio (3)
64.90 73.52 71.12
Asset quality ratios :
Nonperforming assets to total assets at end of period 0.40 % 0.73 % 0.45 %
Nonperforming loans to total loans 0.47 0.75 0.43
Allowance for loan losses to nonperforming loans 208.04 121.11 216.50
Allowance for loan losses to total loans 0.98 0.91 0.93
Net charge-offs to average loans outstanding (0.08) — —
Capital ratios :
Equity to total assets at end of period 9.92 % 10.80 % 9.99 %
Average equity to average assets 10.06 % 10.64 % 10.08 %
Other data :
Number of full-service offices 8 8 8
(1) Net interest income divided by average interest earning assets.
(2) Noninterest income divided by the sum of noninterest income and net interest income.
(3) Noninterest expense divided by total revenue (net interest income and noninterest income).
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Table of Conten t s
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.