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SOUND FINANCIAL BANCORP , INC . Sound Financial Bancorp , Inc. Q1 2021 Results Seattle , WA , April 27 , 2021 -- Sound Financial Bancorp , Inc. ( Nasdaq : SFBC ) , the holding company ( the " Company " ) for Sound Community Bank ( the " Bank " ) , today reported net income of $ 2.5 million for the quarter ended March 31 , 2021 , or $ 0.93 diluted earnings per share , as compared to net income of $ 3.5 million , or $ 1.34 diluted earnings per share for the quarter ended December 31 , 2020 and $ 1.0 million , or $ 0.38 diluted earnings per share for the quarter ended March 31 , 2020. The Company also announced today that the Board of Directors has declared a cash dividend on Company common stock of $ 0.17 per share , payable on May 24 , 2021 to stockholders of record as of the close of business on May 10 , 2021 . Comments from President & Chief Executive Officer " Secondary Market refinance activity and Paycheck Protection loan origination remained strong in the first quarter . Balance sheet growth was driven by deposit increases with a gain of $ 68 million compared to year end . Credit quality remains stable as the communities we serve begin to reopen to additional capacity and activity , " remarked Ms. Stewart , President , Chief Executive Officer and Interim Chief Financial Officer . Q1 2021 Financial Performance Total assets increased $ 75.2 million , or 8.7 % , to $ 936.7 million at March 31 , 2021 , from $ 861.4 million at December 31 , 2020 , and increased $ 199.0 million , or 27.0 % , from $ 737.6 million at March 31 , 2020 . Loans held - for - portfolio increased $ 1.0 million , or 0.2 % , to $ 614.4 million at March 31 , 2021 , compared to $ 613.4 million at December 31 , 2020 , and decreased $ 11.0 million , or 1.8 % from $ 625.4 million at March 31 , 2020 . Paycheck Protection Program ( " PPP " ) loans totaled $ 61.2 million at March 31 , 2021 , compared to $ 43.3 million at December 31 , 2020 . Total deposits increased $ 68.7 million , or 9.2 % , to $ 816.7 million at March 31 , 2021 , from $ 748.0 million at December 31 , 2020 , and increased $ 182.1 million , or 28.7 % , from $ 634.6 million at March 31 , 2020 . Noninterest - bearing deposits increased $ 56.2 million , or 42.4 % , to $ 188.7 million at March 31 , 2021 compared to $ 132.5 million at December 31 , 2020 , and increased $ 78.6 million , or 71.3 % , compared to $ 110.1 million at March 31 , 2020 . Net interest income decreased 9.2 % , to $ 6.5 million , for the quarter ended March 31 , 2021 , from $ 7.2 million for the quarter ended December 31 , 2020 , and decreased 2.9 % from $ 6.7 million for the quarter ended March 31 , 2020 . Net interest margin ( NIM ) was 3.09 % for the quarter ended March 31 , 2021 , compared to 3.46 % for the quarter ended December 31 , 2020 and 3.96 % for the quarter ended March 31 , 2020 . Provision for loan losses was zero for the quarters ended March 31 , 2021 and December 31 , 2020 , compared to a provision for loan losses of $ 250,000 for the quarter ended March 31 , 2020. The allowance for loan losses to total nonperforming loans was 218.92 % and to total loans was 0.97 % at March 31 , 2021 . Net gain on sale of loans was $ 2.1 million for the quarter ended March 31 , 2021 , compared to $ 2.6 million for the quarter ended December 31 , 2020 and $ 318,000 for the quarter ended March 31 , 2020 . The Bank continued to maintain capital levels in excess of the regulatory requirement and was categorized as " well - capitalized " at March 31 , 2021 . 1