Financial Results Reflect a Shift in Momentum

First Sound Bank closed 2023 with a net loss of $952,000, reversing the $716,000 profit it reported the year before. The change was driven by higher operating costs, margin pressure, and a notable increase in reserves tied to credit risk.

The year was marked by active investment in the business. The bank expanded its commercial lending team and pursued loan growth across key segments. Those efforts increased expenses at a faster pace than revenue, putting pressure on overall performance.

Expenses Rise as the Bank Invests in Growth

Compensation and benefits climbed 22% year over year as new hires were brought on to support lending activity. Professional services expenses also rose sharply, increasing 51% as the bank relied more heavily on external expertise for strategic planning and regulatory support.

At the same time, the provision for loan losses increased to $793,000, more than double the prior year. The higher reserve reflected changes in loan balances, evolving risk characteristics, and a more cautious outlook amid economic uncertainty.