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SOUND FINANCIAL BANCORP , INC . Sound Financial Bancorp , Inc. Q3 2021 Results - Seattle , WA , October 26 , 2021 Sound Financial Bancorp , Inc. ( Nasdaq : SFBC ) , the holding company ( the " Company " ) for Sound Community Bank ( the " Bank " ) , today reported net income of $ 2.6 million for the quarter ended September 30 , 2021 , or $ 0.98 diluted earnings per share , as compared to net income of $ 2.3 million , or $ 0.85 diluted earnings per share for the quarter ended June 30 , 2021 , and $ 2.3 million , or $ 0.90 diluted earnings per share for the quarter ended September 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 November 24 , 2021 to stockholders of record as of the close of business on November 10 , 2021 . Comments from President and Chief Executive Officer " We are very pleased with our result for the quarter with net income increasing by 15.2 % over the prior quarter driven by a 13.1 % increase in net interest income . Loans held - for - portfolio increased $ 27.9 million offsetting continued PPP loan forgiveness by the SBA , reflecting our emphasis on organic portfolio growth . Although , deposits increased only modestly this quarter , we achieved continued growth in noninterest - bearing deposits which favorably impacted our cost of funds , " remarked Ms. Stewart , President , Chief Executive Officer . Q3 2021 Financial Performance Total assets increased $ 4.9 million or 0.5 % to $ 928.1 million at September 30 , 2021 , from $ 923.2 million at June 30 , 2021 , and increased $ 60.7 million or 7.0 % from $ 867.4 million at September 30 , 2020 . Net interest income increased 13.1 % to $ 8.3 million for the quarter ended September 30 , 2021 , from $ 7.4 million for the quarter ended June 30 , 2021 , and increased 24.9 % from $ 6.7 million for the quarter ended September 30 , 2020 . Loans held - for - sale increased $ 210 thousand or 5.7 % to $ 3.9 million at September 30 , 2021 , compared to $ 3.7 million at June 30 , 2021 and decreased $ 12.2 million or 75.8 % from $ 16.1 million at September 30 , 2020 . Loans held - for - portfolio increased $ 27.9 million or 4.4 % to $ 667.6 million at September 30 , 2021 , compared to $ 639.6 million at June 30 , 2021 , and decreased $ 21.9 million or 3.2 % from $ 689.4 million at September 30 , 2020. Paycheck Protection Program ( " PPP " ) loans totaled $ 11.8 million at September 30 , 2021 , compared to $ 36.0 million at June 30 , 2021 and $ 74.8 million at September 30 , 2020 . Total deposits increased $ 2.9 million or 0.4 % , to $ 807.7 million at September 30 , 2021 , from $ 804.7 million at June 30 , 2021 , and increased $ 58.8 million from $ 748.9 million at September 30 , 2020. Noninterest - bearing deposits increased $ 13.0 million or 7.1 % to $ 194.8 million at September 30 , 2021 compared to $ 181.8 million at June 30 , 2021 , and increased $ 42.6 million or 28.0 % compared to $ 152.2 million at September 30 , 2020 . Net interest margin ( " NIM " ) was 3.74 % for the quarter ended September 30 , 2021 , compared to 3.36 % for the quarter ended June 30 , 2021 and 3.27 % for the quarter ended September 30 , 2020 . Provision for loan losses was $ 175 thousand for the quarter ended September 30 , 2021 , compared to a $ 250 thousand provision for loan losses for the quarter ended June 30 , 2021 , and a $ 275 thousand provision for loan losses for the quarter ended September 30 , 2020. The allowance for loan losses to total nonperforming loans was 206.16 % and to total loans was 0.95 % at September 30 , 2021 . Net gain on sale of loans was $ 568 thousand for the quarter ended September 30 , 2021 , compared to $ 1.1 million for the quarter ended June 30 , 2021 and $ 1.8 million for the quarter ended September 30 , 2020 . The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as " well- capitalized " at September 30 , 2021 . 1