Sound Financial Inc

(OTC: SNFL)

Industry: Banks
On the web: http://www.soundcb.com
Employees: 66

Sound Financial Inc. was incorporated on January 8, 2008, to hold all of the stock of the Bank, which converted from a state-charted credit union to a federally chartered savings bank in 2003. All of the Company's business is conducted through the Bank. Sound Community Bank was originally chartered in 1953 as the Associated Grocers Employees Federal Credit Union. The Bank’s main business consists of attracting retail deposits from the general public and investing those funds, along with borrowed funds, in loans secured by first and second mortgages on one- to four-family residences, commercial real estate, consumer and commercial business loans and construction and development loans. It offers a variety of secured and unsecured consumer loan products, including manufactured home loans, automobile loans, boat loans and recreational vehicle loans. The Bank intends to continue emphasizing its residential mortgage, home equity and consumer lending, while also expanding its emphasis in commercial real estate and commercial business lending. In recent years, it has focused on expanding its commercial loan portfolio. It offers a variety of deposit accounts, which are its main source of funding for its lending activities. The Bank’s earnings are mainly dependent upon its net interest income, the difference between interest income and interest expense. The main market area is the Puget Sound region. The Company's market area includes a diverse population of management, professional and sales personnel, office employees, manufacturing and transportation workers, service industry workers and government employees, as well as retired and self-employed individuals. The Company faces competition in attracting deposits. Competition in originating real estate loans comes mainly from other savings institutions, commercial banks, credit unions, life insurance companies and mortgage brokers. Other savings institutions, commercial banks, credit unions and finance companies provide vigorous competition in consumer lending. Commercial business competition is mainly from local commercial banks, but other savings banks and credit unions also compete for this business. The Company and the Bank are subject to regulation, supervision and examination by the OTS.