Q3 Financial Earnings Show Modest Gains Across Regional Banks

Sound Financial Bancorp reported a third-quarter net income increase year-over-year to $1.69 million, or $0.66 per share, despite a decrease from the previous quarter, with revenue rising 13.6% to $8.94 million. The company declared a $0.19 per share cash dividend and highlighted strong liquidity, capital positions, improved net interest margin, and managed asset quality, though its mortgage servicing portfolio valuation declined. Finward Bancorp posted a net income of $3.5 million for Q3 2025, up from $2.2 million in Q2, benefiting from margin expansion, stable credit, and efficiency gains, supported by a Federal Reserve rate cut and solid capital and liquidity. Western New England Bancorp reported a Q3 net income of $3.2 million, down from the previous quarter but up year-over-year, with notable growth in core deposits and loans, strong asset quality, and ongoing stock repurchase programs. Both Sound Financial Bancorp and Western New England Bancorp maintain a Hold rating with neutral outlooks from analysts, reflecting solid financial performance but cautious technical trends. Overall, these regional banks demonstrated growth in profitability and deposits, supported by disciplined capital management and efficiency improvements amid economic uncertainties.