The Federal Reserve is the primary federal regulator for Sound Financial Bancorp. Lending authority is also granted to certain other lending staff at lower amounts. Loans secured by rental properties represent potentially higher risk. At December 31, 2020, this loan was performing in accordance with its repayment terms. We also offer commercial and multifamily construction loans. These risks can also be significantly impacted by supply and demand conditions. We originated 909 PPP loans totaling $74.8 million during 2020. Most one-to-four family loans are sold with servicing retained. Once a loan is 90 days past due, it is classified as nonaccrual. At December 31, 2020, OREO and repossessed assets totaled $594,000. Our OREO at December 31, 2020, consisted of two properties. We use letters of credit from the FHLB of Des Moines as collateral for these funds. At the same date, we had no outstanding FHLB advances. We plan to rely in part on FHLB advances to fund asset and loan growth. The 26Table of Contentsterms of both programs call for a pledge of specific assets. "28Table of ContentsRegulation by the WDFI and the FDIC. Management cannot predict what assessment rates will be in the future. Sound Financial Bancorp is an affiliate of Sound Community Bank. See "Note 16—Capital" in Notes to Consolidated Financial Statements in "Part II. An unsatisfactory rating may be the basis for denial of certain applications by the WDFI. Our federal income tax returns have never been audited by the Internal Revenue Service. Management considers its employee relations to be good. In 2018, she was named Community Banker of the year by American Banker. We believe that these loans satisfy a need in our local market areas. Changes in prepayment rates are therefore difficult for us to predict. We are subject to certain risks in connection with our data management or aggregation.
