Which version sounds more natural and engaging?
When Tom got out of the water, he was still scared but at the same time relieved. Everyone else was laughing at what had happened. So, he thought aloud, 'I should have expected this from Sam.' It had been a joke he would never forget.
Or
When Tom got out of the water, he was still scared but at the same time relieved. Everyone else was laughing at what had happened. 'I should have expected this from Sam,' Tom thought aloud. It had been a joke he would never forget.