Sound Financial Bancorp, Inc. · NASDAQ:SFBC
Sound Financial Bancorp — Keefe, Bruyette & Woods Community Bank Investor Conference 2019
14 slides from Sound Financial Bancorp's conference presentation, Jul 30, 2019
Slide 1: Sound Financial Bancorp, Inc. KBW Community Bank Investor Conference
Sound Financial Bancorp, Inc. NASDAQ: SFBC Laurie Stewart President & CEO Daphne Kelley CFO July 2019 Sponsored By: Keefe, Bruyette & Woods Community Bank Investor Conference
Slide 2: Important Disclosures
Important Disclosures Forward-Looking Statements Except for the historical information contained in this presentation, the matters discussed in this presentation may be deemed to be forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve r
Slide 3: Senior Management
Senior Management rl SOUND COMMUNITY BANK Simply better here.
Slide 4: Corporate Profile
Corporate Profile • Sound Financial Bancorp is the holding company for Sound Community Bank, a Washington state-chartered commercial bank • Company Timeline Founded as a Converted to a Converted into a Mutual On August 22, 2012, Credit Union in Federal Mutual Holding Company structure completed seco
Slide 5: Branch Network
Branch Network Branch Name* Deposits as of June 30, 2019 Port Angeles $113M Sequim $221M Port Ludlow $47M Mountlake Terrace $42M Belltown $9M Downtown Seattle $78M Tacoma $39M University Place $18M * Table does not include administrative deposits, such as employee and brokered deposits. 5
Slide 6: Our Strategy
Our Strategy • Attract retail and commercial deposits from the general public through Deposit Growth expansion in product offerings and distribution channels, including our digital strategy. Invest in Loans • Secured by first and second mortgages on one- to four-family residences (including home equ
Slide 7: Strong Economic Region in US
Strong Economic Region in US • Annual increase of 82,300 in employment as Major Employers in Western Washington of May 20191 • Washington unemployment rate 4.7%, Seattle area 3.5%1 • Median Household income of $84,000 for Washington with a projected five year growth rate of 2.6%2 • Five year populat
Slide 8: Shareholder Return
Shareholder Return 1-Year Total Return Comparison 15.0% 4.2% 0.0% (7.2)% (15.0%) (18.2)% (30.0%) Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 3-Year Total Return Comparison 85.0% 60.0% 55.0% 35.0% 39.1% 20.4% 10.0% (15.0%) Jun-16 Dec-16 Jun-17 Dec-17 Jun
Slide 9: Dividend Payments
Dividend Payments $0.200 (Special) Current Dividend Yield: 1.6% Last Twelve Months Dividend Payout Ratio: 20.9% $0.140 $0.120 $0.100 $0.075 $0.060 $0.050 $0.046 $0.023 7/25/08 2/25/09 12/15/09 8/27/13 5/27/14 2/26/15 11/24/15 8/26/16 5/26/17 2/26/18 11/21/18 8/22/19 On July 26, 2019, the Company ann
Slide 10: Share Information
Share Information Year-to-Date Fully Diluted Earnings Per Share $3.00 $2.74 $2.00 $2.08 $2.00 $1.63 $1.86 $1.00 $1.49 $1.27 $- Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Jun 2019 Year-to-Date Fully Diluted Tangible Book Value $30.00 $27.52 $28.58 $24.92 6.50 Year $20.00 $23.18 $19.19 $20.
Slide 11: Financial Highlights
Financial Highlights Line Item or Ratio Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Jun 2019 Annual Annual Annual Annual Annual Annual 6 Months Total Assets $443M $495M $541M $588M $645M $717M $686M Interest Bearing Deposits $314M $363M $389M $404M $442M $458M $483M Non-interest Bearing De
Slide 12: Net Interest Margin and Efficiency Ratio
Net Interest Margin and Efficiency Ratio • Net Interest Margin – Loan yield increased 7bps to 5.49% year-to-date June 2019, compared to 5.42% year-to- date June 2018. – Cost of funds increased 42bps to 1.20% year-to-date June 2019 compared to 0.78% year-to- date June 2018. Deposit cost of funds incr
Slide 13: Loan Type
Loan Type 7% 1-4 Family Residential ($145M) 4% 1% Residential Land ($9M) 6% 26% Residential Construction ($18M) 1-4 Family Second Mortgages ($11M) 12% 2% 1-4 Family HELOCs ($13M) 3% Commercial Construction ($43M) 2% 2% Commercial Real Estate ($155M) 8% Multifamily Residential ($70M) 27% Commercial a
Slide 14: Q&A
Q&A 14
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