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SOUND FINANCIAL BANCORP , INC . Sound Financial Bancorp , Inc. Q2 2021 Results Seattle , WA , July 28 , 2021 — Sound Financial Bancorp , Inc. ( Nasdaq : SFBC ) , the holding company ( the " Company " ) for Sound Community Bank ( the " Bank " ) , today reported net income of $ 2.3 million for the quarter ended June 30 , 2021 , or $ 0.85 diluted earnings per share , as compared to net income of $ 2.5 million , or $ 0.93 diluted earnings per share for the quarter ended March 31 , 2021 , and $ 2.1 million , or $ 0.82 diluted earnings per share for the quarter ended June 30 , 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 August 24 , 2021 to stockholders of record as of the close of business on August 10 , 2021 . Comments from President and Chief Executive Officer " Despite slowing real estate refinance activity and robust PPP loan forgiveness , we were able to increase total loans this quarter . This loan growth , coupled with an improvement in our net interest margin which resulted from both the acceleration of fees earned on PPP loans and a lower cost of funds , resulted in another strong quarterly performance , " remarked Ms. Stewart , President , Chief Executive Officer and Interim Chief Financial Officer . Q2 2021 Financial Performance Total assets decreased $ 13.5 million or 1.4 % to $ 923.2 million at June 30 , 2021 , from $ 936.7 million at March 31 , 2021 , and increased $ 51.5 million or 5.9 % from $ 871.7 million at June 30 , 2020 . Net interest income increased 12.5 % to $ 7.4 million for the quarter ended June 30 , 2021 , from $ 6.5 million for the quarter ended March 31 , 2021 , and increased 6.6 % from $ 6.9 million for the quarter ended June 30 , 2020 . Loans held - for - sale decreased $ 7.0 million or 65.7 % to $ 3.7 million at June 30 , 2021 , compared to $ 10.7 million at March 31 , 2021 and decreased $ 3.7 million or 50.1 % from $ 7.4 million at June 30 , 2020 . Net interest margin ( " NIM " ) was 3.36 % for the quarter ended June 30 , 2021 , compared to 3.09 % for the quarter ended March 31 , 2021 and 3.69 % for the quarter ended June 30 , 2020 . Loans held - for - portfolio increased $ 25.3 million or 4.1 % to $ 639.6 million at June 30 , 2021 , compared to $ 614.4 million at March 31 , 2021 , and decreased $ 51.1 million or 7.4 % from $ 690.7 million at June 30 , 2020. Paycheck Protection Program ( " PPP " ) loans totaled $ 36.0 million at June 30 , 2021 , compared to $ 61.2 million at March 31 , 2021 and $ 73.1 million at June 30 , 2020 . Total deposits decreased $ 12.0 million or 1.5 % , to $ 804.7 million at June 30 , 2021 , from $ 816.7 million at March 31 , 2021 , and increased $ 110.4 million from $ 694.3 million at June 30 , 2020. Noninterest - bearing deposits decreased $ 6.8 million or 3.6 % to $ 181.8 million at June 30 , 2021 compared to $ 188.7 million at March 31 , 2021 , and increased $ 39.4 million or 27.6 % compared to $ 142.5 million at June 30 , 2020 . Provision for loan losses was $ 250 thousand for the quarter ended June 30 , 2021 , compared to no provision for loan losses for the quarter ended March 31 , 2021 , and a $ 400 thousand provision for loan losses for the quarter ended June 30 , 2020 . The allowance for loan losses to total nonperforming loans was 412.67 % and to total loans was 0.96 % at June 30 , 2021 . Net gain on sale of loans was $ 1.1 million for the quarter ended June 30 , 2021 , compared to $ 2.1 million for the quarter ended March 31 , 2021 and $ 1.3 million for the quarter ended June 30 , 2020 . The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as " well- capitalized " at June 30 , 2021 . 1