PackageTrendsPeer
Letter portraitLegal landscape

Sound Banking Company

Lakewood, WA · Cert 33183

State charter, non-member · FDIC · 1 branch

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks under $1B in assets3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks under $1B in assets (n=581 to 629). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

63

Q2 2024Q2 2026peer median (50)

Asset Quality

67

Q2 2024Q2 2026peer median (50)

Profitability

91

Q2 2024Q2 2026peer median (50)

Liquidity

23

Q2 2024Q2 2026peer median

Efficiency

69

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Sound Banking Company

Lakewood, WA · Cert 33183

State charter, non-member · FDIC · 1 branch

Q2 2026

$45.2MAssets
$38.8MLoans
$39.6MDeposits
$5.4MEquity
Loan mix
94%RE $33.9M6%C&I $2.1M0%Consumer $0.0MQ2 2025Q2 2026
Deposit mix
68%Interest-bearing $26.9M32%Noninterest $12.7MQ2 2025Q2 2026

NIM

6.80%Q2 ’247.14%Q2 ’257.12%Q2 ’26+6%+3%

Non-interest income vs. expense

3.66%Q2 ’243.58%Q2 ’253.96%Q2 ’26-2%+9%

Market Position · Seattle-Tacoma-Bellevue, WA · 2026 SOD (annual) · 0.0% share · #38 of 43 inst. · $0.0B of $143.1B

Executive Summary

  • Earnings: ROA of 1.98%, up 3 bps year over year; NIM at 5.97%.
  • Asset quality: problem loans at 0.00% of loans (-4 bps YoY), with net charge-offs at 0.07%.
  • Capital: tier 1 leverage ratio of 12.08%, up 78 bps from a year ago.
  • Funding: loans stand at 98.14% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.98%+3 bps YoY

Net Interest Margin (YTD, annualized)

5.97%+17 bps YoY

Efficiency Ratio (YTD, annualized)

61.35%+359 bps YoY

Tier 1 Leverage Ratio

12.08%+78 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.95%1.95%1.49%1.84%1.98%+3 bps
Return on Equity17.88%17.77%13.29%14.21%15.70%-218 bps
Net Interest Margin5.79%5.82%5.95%5.84%5.97%+17 bps
Efficiency Ratio57.76%57.66%68.90%63.49%61.35%+359 bps
Non-Interest Burden3.18%3.17%3.93%3.53%3.48%+30 bps
Growth
Asset Growth (YoY)15.53%2.90%-4.30%-18.50%-12.14%-2,766 bps
Loan Growth (YoY)4.27%3.82%6.35%-5.47%-1.95%-622 bps
Deposit Growth (YoY)17.81%3.12%-5.22%-21.17%-13.73%-3,155 bps
Asset Quality
Nonperforming Loans / Loans0.04%0.04%0.04%0.04%0.00%-4 bps
Net Charge-Offs / Loans0.00%0.00%0.00%0.00%0.07%+7 bps
Allowance / Loans1.60%1.59%1.60%1.75%1.60%0 bps
Allowance Coverage of NPLs37.3x39.6x42.3x42.3xn/an/a
Capital
Tier 1 Leverage Ratio11.30%12.08%11.94%13.06%12.08%+78 bps
Total Risk-Based Capital15.06%15.35%15.38%18.10%16.52%+146 bps
Equity / Assets10.51%11.03%12.18%13.71%12.02%+151 bps
Liquidity & Funding
Loans / Deposits86.35%86.95%99.36%99.25%98.14%+1,179 bps
Liquid Assets / Assets13.07%13.34%1.20%2.65%2.62%-1,045 bps
CRE / Total Capitaln/a383%393%340%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

Sound Banking Company

Lakewood, WA · Cert 33183 · Peer group: banks under $1B in assets (n=581-629)

State charter, non-member · FDIC · 1 branch

Q2 2026

$45.2MAssets
$38.8MLoans
$39.6MDeposits
$5.4MEquity

Executive Summary

  • Strongest standing: nonperforming loans / loans outperforms 100% of banks under $1B in assets (rank 81 of 581).
  • Widest gap: net charge-offs / loans trails 66% of banks under $1B in assets (rank 385 of 581).
  • Overall: at or above the peer median on 8 of 9 directional measures.

Return on Assets

1.95%

Rank 80 of 629

Net Interest Margin

5.97%

Rank 6 of 629

Efficiency Ratio

61.35%

Rank 196 of 629

Equity / Assets

12.02%

Rank 226 of 629

Non-interest income vs. expense

$0.2M$1.8MINCOMEEXPENSE
Unfavorable gap of $1.6M · efficiency ratio beats 69% of banks under $1B in assets
Bank 61.35%Peer median 67.8%Q4 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets1.95%0.60%1.01%1.45%Beats 87%80 / 629
Return on Equity16.19%5.38%9.30%13.28%Beats 87%80 / 629
Net Interest Margin5.97%3.03%3.54%4.05%Beats 99%6 / 629
Efficiency Ratio61.35%58.35%67.79%79.08%Beats 69%196 / 629
Asset Quality
Nonperforming Loans / Loans0.00%0.09%0.46%1.20%Beats 100%81 / 581
Net Charge-Offs / Loans0.03%n/a0.01%0.06%Beats 34%385 / 581
Capital
Tier 1 Capital Ratio15.27%11.24%13.84%18.77%Beats 62%240 / 629
Total Risk-Based Capital Ratio16.52%11.58%14.43%19.66%Beats 64%225 / 629
Equity / Assets12.02%9.09%10.65%13.80%Beats 64%226 / 629
Liquidity & Funding
Loans / Deposits98.14%67.24%80.90%93.48%83rd pctl103 / 594
Loans / Assets85.98%53.31%67.71%78.15%95th pctl34 / 629
Brokered Deposits / Depositsn/aNot reported for this institution