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CST: 24/08/2019 08:53:02   

PSB Reports First Quarter 2019 Earnings of $2.7 Million or $0.61 Per Share; Common Stock Upgraded to Trade on OTCQX

117 Days ago

WAUSAU, Wis., April 29, 2019 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank serving North Central Wisconsin, reported first quarter earnings ending March 31, 2019 of $2.73 million, or $0.61 per share, compared to earnings of $0.56 per share on net income of $2.53 million one quarter earlier and $0.52 per share one year earlier on earnings of $2.36 million.  The first quarter earnings included a $534,000 gain on equity securities, or $.09 per share, due to a change in accounting principle.

“We continue to realize organic loan, deposit, and earnings growth year-over-year.  March 2019 quarter return on equity of 13.42% was strong and has ranged from 12.62% to 14.57% over the past five quarters.  Before the positive impact of the change in accounting principle and resulting gain on securities, March 2019 net income was similar to the prior year quarter as increased net interest income from higher net margin was offset by higher provision for loan losses,” stated Scott Cattanach, President and CEO.  “To enhance the visibility of our common stock, we recently moved to the OTCQX trading platform in an effort to appeal to a wider group of investors.” 

Financial Highlights (at or for the periods ended March 31, 2019, compared to December 31, 2018 and/or March 31, 2018, as applicable):

  • The net interest margin increased to 3.63% for the quarter ended March 31, 2019, compared to 3.58% the previous quarter and 3.49% for the first quarter one year earlier. 
     
  • Return on shareholders’ equity was 13.42% for the quarter ended March 31, 2019 compared to 12.62% one quarter earlier and 12.90% for the first quarter one year earlier.  Return on average assets was 1.23% for the first quarter of 2019 compared to 1.14% the previous quarter and 1.13% for the first quarter one year earlier. Excluding the gain on equity securities due to the change in accounting principle, quarter ended March 31, 2019, return on shareholders’ equity was 11.41% and return on average assets was 1.05%.
     
  • Non-interest income, due to a change in accounting principle, increased $534,000 during the quarter ended March 31, 2019.
     
  • Loan loss provisions increased to $400,000 for the quarter ended March 31, 2019 reflecting reserves against an increasing loan portfolio and a specific reserve established on a credit exposed to the bankruptcy of the retailer Shopko.
     
  • The efficiency ratio was 58.59% for the quarter ended March 31, 2019 compared to 62.54% one quarter earlier and 63.08% in the year ago quarter. Excluding the equity securities gain for the quarter ended March 31, 2019, the efficiency ratio was 61.89%.
     
  • Tangible net book value was $18.89 per share at March 31, 2019, an increase of 5.06% from $17.98 per share as of December 31, 2018 and 14.35% from $16.52 per share at March 31, 2018.

Balance Sheet and Asset Quality Review

Total assets were $893.8 million as of March 31, 2019, compared to $916.0 million as of December 31, 2018.  Relative to the prior quarter, assets decreased $22.2 million, or 2.42%.  Total loans receivable increased $2.28 million which continued to be partially fueled by origination activity in our loan production office in Milwaukee.  Organic loan growth was offset by seasonal paydowns of commercial lines of credit of $11.2 million.  Most of the loan growth was in the commercial/agricultural real estate loan portfolio, which increased to $360.0 million at March 31, 2019 from $349.4 million at December 31, 2018.  The growth in commercial real estate loans was partially offset by the decline in commercial/agricultural non-real estate loans which declined $7.8 million to $139.4 million at March 31, 2019 from $147.2 million at December 31, 2018.  Non-owner occupied commercial/agricultural real estate loans represented the largest component of the loan portfolio at 30.7% of gross loans at March 31, 2019, followed by residential real estate loans at 24.6%, owner occupied commercial/agricultural real estate loans at 23.3%, commercial loans at 20.9% and consumer loans at 0.5%.  The allowance for loan losses was 0.98% of gross loans at March 31, 2019, compared to 0.94% at the end of the previous quarter and 1.04% one year earlier.  The annualized net charge-offs to average loans was 0.08% for the quarter ended March 31, 2019 compared to 0.07% at the end of  the previous quarter and 0.03% one year earlier.

Non-performing assets were 0.84% of total assets at March 31, 2019, compared to 0.67% at December 31, 2018, and 0.79% at March 31, 2018.  The slight increase in non-performing assets relates to a commercial real estate credit that leases property to the retailer Shopko.  The retailer announced bankruptcy filing in mid-January 2019 and subsequently announced on March 19, 2019 the liquidation of all stores by June 2019.  At March 31, 2019, we had two Shopko related credits with a balance of $3.7 million of which one credit was listed as non-performing for $1.5 million.  At March 31, 2019, non-performing assets consisted of $4.8 million in non-accruing loans, $2.3 million in restructured loans not on non-accrual, $283,000 in non-accrual restructured loans and $113,000 in foreclosed assets.  Nonperforming assets aggregating to $500,000 or more, measured by gross principal outstanding per credit relationship, included three relationships at March 31, 2019, totaling $3.3 million.  Specific reserves maintained on these large problem loans were $577,000 at March 31, 2019.

At March 31, 2019, cash and investments totaled $195.7 million compared to $219.1 million at December 31, 2018.  “During the most recent quarter, we sold some shorter-term bonds and repurchased bonds with longer maturities to extend the duration of our investment portfolio and paid off some wholesale borrowings.  The impact increased our investment yield as the interest rate environment appears to have stabilized and our maturity schedule aligns with our investment needs. Additionally, the reduction of wholesale funding sources has improved our net interest margin,” said Mark Oldenberg, Chief Financial Officer. 

Total deposits decreased $10.4 million to $715.4 million at March 31, 2019 from $725.8 million at December 31, 2018. At March 31, 2019, interest-bearing demand and savings deposits accounted for 34.0% of total deposits, followed by money market deposits at 22.5%, noninterest-bearing demand deposits at 19.3% and retail and local time deposits at 17.4%.  Broker and national time deposits accounted for 6.8% of total deposits at March 31, 2019 versus 7.6% the prior quarter and 8.5% one year earlier.

FHLB advances decreased $29.9 million to $51.2 million at March 31, 2019, from $81.1 million at December 31, 2018 as wholesale funding needs were reduced and repayments were made from liquid investments.  Total borrowings decreased to $84.3 million at March 31, 2019, from $99.7 million at the end of the prior quarter.    

For the quarter ended March 31, 2019, stockholders’ equity increased $4.2 million, or 5.26%, to $85.1 million, compared to $80.8 million at December 31, 2018.  Tangible net book value per share increased 5.06% to $18.89 per share, at March 31, 2019, compared to $17.98 per share at December 31, 2018.  PSB’s tangible equity to total assets increased to 9.50% at March 31, 2019, compared to 8.81% at December 31, 2018. 

Operations Review

Net interest income totaled $7.6 million (on a net margin of 3.63%) for the first quarter of 2019, compared to $7.5 million (on net margin of 3.58%) for the fourth quarter of 2018 and $6.8 million (on a net margin of 3.49%) for the first quarter of 2018.  Net interest income growth from the prior quarter was mainly due to a higher net interest margin as loans and investments repriced slightly faster than the funding sources and the benefit realized from extending bond duration.  Compared to the December 2018 quarter, loans and investment yields increased 12 bps to 4.59% during the quarter ended March 31, 2019 while deposit and borrowing costs rose only 8 bps to 1.23%. Loan yields increased to 5.09% from 4.95% during the quarter ended March 31, 2019.

The cost of interest-bearing liabilities increased during the quarter but at a slower rate than the yield on interest-earning assets as less wholesale funding sources were utilized and lower costing core deposits funded a larger portion of loans and investments.  The largest change in interest expense during the current quarter came from interest cost associated with savings and demand deposits where costs increased from $370,000 to $472,000.  Interest cost related to time deposits, however, declined over the quarter from $785,000 to $782,000 due primarily to a smaller deposit balance.  Interest cost related to FHLB advances also declined over the quarter to $309,000 from $315,000 as average borrowings declined slightly. The net impact was a 5 bp increase in the net interest margin which increased to 3.63% for the quarter ended March 31, 2019 from 3.58% the previous quarter ended December 31, 2018.

The provision for loan losses totaled $400,000 during the first quarter of 2019 compared to a provision of $60,000 for the prior linked quarter.  The increased provision primarily relates to establishing reserves related to a credit associated with the bankruptcy of Shopko and reserves against the growing loan portfolio.

Total noninterest income for the first quarter of 2019 was $2.1 million compared to $1.7 million during the preceding quarter and $1.6 million for the first quarter of 2018.  The increase from the previous quarter was primarily related to a gain realized on an equity investment of approximately $534,000, due to a change in accounting principle.  Commissions on investment and insurance sales declined to $333,000 from $430,000 the prior quarter.  Service fees and gains on the sale of mortgage loans in the first quarter were $381,000 and $175,000, respectively, compared to $388,000 and $284,000 during the first quarter of 2018.  The decrease in gain on sale of mortgage loans was due to fewer units sold into the secondary market as limited local housing inventory and seasonal factors hurt sales volume.

Noninterest expense was $5.7 million for the first quarter of 2019 compared to $5.8 million for the fourth quarter of 2018 and $5.4 million for the first quarter of 2018.  For the first quarter of 2019 noninterest expense decreased due to decreased salaries and benefit expenses, data processing/other office operation expenses and lower advertising and promotion expenses.

Results of Annual Meeting of Shareholders

PSB Holdings, Inc. today announced that shareholders approved all proposals and re-elected all director nominees at its 2019 Annual Meeting held April 16, 2019 in Wausau, WI.  The proposals included the election of directors, an amendment to the Articles of Incorporation to increase the authorized shares outstanding, an amendment to the Articles of Incorporation to stagger the election terms of board members and the ratification of auditors.

About PSB Holdings, Inc.

PSB Holdings, Inc. is the parent company of Peoples State Bank. Peoples is a community bank headquartered in Wausau, Wisconsin, serving north central Wisconsin from nine full service banking locations in Marathon, Oneida, and Vilas counties and loan production offices in Milwaukee and Stevens Point, Wisconsin. Peoples also provides investment and insurance products, along with retirement planning services, through Peoples Wealth Management, a division of Peoples.  PSB Holdings, Inc. is traded under the stock symbol PSBQ on the OTCQX Market.  More information about PSB, its management, and its financial performance may be found at www.psbholdingsinc.com.

Forward Looking Statements

Certain matters discussed in this news release, including without limitation those relating to potential loan and deposit growth, future profits, changes in noninterest income and expenses, pro-forma impacts to income from non-recurring or unusual income and expense items, and future interest rates, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in this release. Among other things, these risks and uncertainties include the strength of the economy, the effects of government policies, including, in particular, interest rate policies, and other risks and assumptions.  PSB Holdings, Inc. assumes no obligation to update or supplement forward-looking statements that become untrue because of events subsequent to this press release.

               
PSB Holdings, Inc. 
Quarterly Financial Summary 
(dollars in thousands, except per share data) Quarter ended
        Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
Earnings and dividends:      2019   2018   2018   2018   2018 
                 
  Interest income     $   9,604   $   9,365   $   9,063   $   8,685   $   8,076  
  Interest expense     $   2,032   $   1,888   $   1,805   $   1,406   $   1,262  
  Net interest income     $   7,572   $   7,477   $   7,258   $   7,279   $   6,814  
  Provision for loan losses     $   400   $   60   $   10   $   30   $   30  
  Other noninterest income     $   2,117   $   1,718   $   1,615   $   1,553   $   1,590  
  Other noninterest expense   $   5,745   $   5,829   $   5,373   $   5,145   $   5,366  
  Net income     $   2,731   $   2,529   $   2,661   $   2,767   $   2,355  
                 
  Basic earnings per share (3)   $   0.61   $   0.56   $   0.59   $   0.62   $   0.52  
  Diluted earnings per share (3)   $   0.61   $   0.56   $   0.59   $   0.62   $   0.52  
  Dividends declared per share (3)   $   -    $   0.18   $   -    $   0.18   $   -   
  Tangible net book value per share (4)   $   18.89   $   17.98   $   17.37   $   16.90   $   16.52  
                 
  Semi-annual dividend payout ratio   n/a  15.56% n/a  15.49% n/a
  Average common shares outstanding       4,494,568       4,488,397       4,490,621       4,492,059       4,515,384  
                 
Balance sheet - average balances:            
                 
  Loans receivable, net of allowances for loss $   658,586   $   646,063   $   634,469   $   619,251   $   608,203  
  Assets     $   899,263   $   883,373   $   881,518   $   845,816   $   841,863  
  Deposits     $   713,257   $   708,318   $   708,521   $   691,706   $   691,799  
  Stockholders' equity     $   82,516   $   79,525   $   77,390   $   76,150   $   74,026  
                 
Performance ratios:              
                 
  Return on average assets (1)     1.23 %   1.14 %   1.20 %   1.31 %   1.13 %
  Return on average stockholders' equity (1)   13.42 %   12.62 %   13.64 %   14.57 %   12.90 %
  Average stockholders' equity less accumulated          
    other comprehensive income (loss) to            
    average assets       9.27 %   9.22 %   9.02 %   9.21 %   8.92 %
  Net loan charge-offs to average loans (1)   0.08 %   0.07 %   -0.06 %   0.16 %   0.03 %
  Nonperforming loans to gross loans     1.11 %   0.91 %   0.84 %   0.81 %   1.05 %
  Nonperforming assets to total assets     0.84 %   0.67 %   0.67 %   0.67 %   0.79 %
  Allowance for loan losses to gross loans   0.98 %   0.94 %   0.98 %   0.97 %   1.04 %
  Nonperforming assets to tangible equity          
    plus the allowance for loan losses (4)     8.40 %   7.20 %   7.14 %   7.37 %   8.47 %
  Net interest rate margin (1)(2)     3.63 %   3.58 %   3.48 %   3.67 %   3.49 %
  Net interest rate spread (1)(2)     3.36 %   3.32 %   3.23 %   3.46 %   3.31 %
  Service fee revenue as a percent of            
    average demand deposits (1)     1.12 %   1.15 %   1.16 %   1.13 %   1.15 %
  Noninterest income as a percent            
    of gross revenue       18.06 %   15.50 %   15.12 %   15.17 %   16.45 %
  Efficiency ratio (2)       58.59 %   62.54 %   59.75 %   57.56 %   63.08 %
  Noninterest expenses to average assets (1)   2.59 %   2.62 %   2.42 %   2.44 %   2.59 %
  Tangible equity to actual assets     9.50 %   8.81 %   8.83 %   8.61 %   8.79 %
                 
Stock price information:              
                 
  High     $   23.45   $   27.50   $   27.45   $   24.67   $   23.67  
  Low     $   21.25   $   21.10   $   24.08   $   23.08   $   22.92  
  Last trade value at quarter-end   $   22.75   $   22.50   $   27.20   $   24.67   $   23.58  
                 
(1) Annualized              
(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%. 
(3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals. 
(4) Tangible stockholders' equity excludes intangible assets and any preferred stock capital elements. 

 

             
PSB Holdings, Inc.   
Consolidated Statements of Income   
    Quarter Ended    
(dollars in thousands, Mar. 31, Dec. 31, Sept. 30, Jun. 30, Mar. 31,  
except per share data - unaudited)  2019  2018    2018    2018    2018  
             
Interest and dividend income:            
  Loans, including fees $   8,334 $   8,125   $   7,814   $   7,579   $   6,971  
  Securities:            
  Taxable     713     714       732       677       676  
  Tax-exempt     396     424       394       364       335  
  Other interest and dividends     161     102       123       65       94  
             
  Total interest and dividend income     9,604     9,365       9,063       8,685       8,076  
             
Interest expense:            
  Deposits     1,553     1,435       1,324       1,078       978  
  FHLB advances     309     315       359       221       190  
  Other borrowings     51     18       1       3       2  
  Senior subordinated notes     28     28       28       29       26  
  Junior subordinated debentures     91     92       93       75       66  
             
  Total interest expense     2,032     1,888       1,805       1,406       1,262  
             
Net interest income     7,572     7,477       7,258       7,279       6,814  
Provision for loan losses     400     60       10       30       30  
             
Net interest income after provision for loan losses     7,172     7,417       7,248       7,249       6,784  
             
Noninterest income:            
  Service fees     381     419       415       389       388  
  Gain on sale of mortgage loans     175     227       286       258       284  
  Mortgage loan servicing, net     125     129       115       131       98  
  Investment and insurance sales commissions     333     430       299       274       304  
  Net gain on sale of securities     18     -        -        -        -   
  Increase in cash surrender value of life insurance     98     96       95       93       89  
  Other noninterest income     987     417       405       408       427  
             
  Total noninterest income     2,117     1,718       1,615       1,553       1,590  
             
Noninterest expense:            
  Salaries and employee benefits     3,428     3,566       3,244       3,101       3,283  
  Occupancy and facilities     601     526       499       534       556  
  Loss (gain) on foreclosed assets     4     (17 )     (7 )     (18 )     8  
  Data processing and other office operations     577     654       649       625       635  
  Advertising and promotion     100     163       98       74       85  
  FDIC insurance premiums     59     61       63       65       58  
  Other noninterest expenses     976     876       827       764       741  
             
  Total noninterest expense     5,745     5,829       5,373       5,145       5,366  
             
Income before provision for income taxes     3,544     3,306       3,490       3,657       3,008  
Provision for income taxes     813     777       829       890       653  
             
Net income $   2,731 $   2,529   $   2,661   $   2,767   $   2,355  
Basic earnings per share $   0.61 $   0.56   $   0.59   $   0.62   $   0.52  
Diluted earnings per share $   0.61 $   0.56   $   0.59   $   0.62   $   0.52  
             

 

PSB Holdings, Inc. 
Consolidated Statements of Comprehensive Income 
         
      Three Months Ended
      March 31,
(dollars in thousands - unaudited)  2019   2018 
         
Net income $   2,731   $   2,355  
         
Other comprehensive income, net of tax:    
         
  Unrealized gain (loss) on securities available    
    for sale     1,515       (1,048 )
         
  Reclassification adjustment for security    
    gain included in net income     (13 )     -   
         
  Amortization of unrealized gain included in net    
    income on securities available for sale    
    transferred to securities held to maturity     (4 )     (14 )
         
  Unrealized gain (loss) on interest rate swap     (77 )     -   
         
  Reclassification adjustment of interest rate    
    swap settlements included in earnings     3       -   
         
         
Other comprehensive income (loss)     1,424       (1,062 )
         
Comprehensive income $   4,155   $   1,293  
         

 

           
PSB Holdings, Inc. 
Consolidated Balance Sheets 
March 31, 2019, September 30, June 30, and March 31, 2018 unaudited,
December 31, 2018 derived from audited financial statements 
   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, 
(dollars in thousands, except per share data)  2019   2018   2018   2018   2018 
Assets          
           
Cash and due from banks $   8,917   $   18,923   $   15,348   $   11,876   $   8,854  
Interest-bearing deposits     349       501       930       453       164  
Federal funds sold     12,989       24,554       14,246       19,493       21,050  
           
Cash and cash equivalents     22,255       43,978       30,524       31,822       30,068  
Securities available for sale (at fair value)     127,368       113,821       114,997       114,939       102,865  
Securities held to maturity (fair values of $43,338, $57,607, $59,341, $61,487 and        
  $63,783 respectively     43,061       58,311       60,421       62,299       64,536  
Bank certificates of deposit (at cost)     2,976       2,976       2,976       2,976       3,472  
Loans held for sale     245       358       -        405       156  
Loans receivable, net     660,756       658,481       636,712       631,620       606,764  
Accrued interest receivable     2,826       2,777       2,709       2,544       2,372  
Foreclosed assets     113       113       483       736       260  
Premises and equipment, net     10,426       10,209       10,339       10,524       10,582  
Mortgage servicing rights, net     1,781       1,805       1,805       1,817       1,817  
Federal Home Loan Bank stock (at cost)     1,657       2,330       2,011       2,297       1,672  
Cash surrender value of bank-owned life insurance     16,463       16,365       15,407       15,312       15,219  
Other assets     3,836       4,474       4,893       4,655       4,438  
           
TOTAL ASSETS $   893,763   $   915,998   $   883,277   $   881,946   $   844,221  
           
Liabilities          
           
Non-interest-bearing deposits $   138,124   $   148,611   $   151,484   $   138,079   $   136,873  
Interest-bearing deposits     577,263       577,215       565,799       571,512       557,118  
           
  Total deposits     715,387       725,826       717,283       709,591       693,991  
           
Federal Home Loan Bank advances     51,165       81,071       64,660       71,523       48,831  
Other borrowings     22,870       8,379       4,864       1,140       8,513  
Senior subordinated notes     2,500       2,500       2,500       2,500       2,500  
Junior subordinated debentures     7,732       7,732       7,732       7,732       7,732  
Accrued expenses and other liabilities     9,047       9,650       8,144       13,412       8,302  
           
  Total liabilities     808,701       835,158       805,183       805,898       769,869  
           
Stockholders' equity          
           
Preferred stock - no par value:          
  Authorized - 30,000 shares; no shares issued or outstanding     -        -        -        -        -   
Common stock - no par value with a stated value of $1.00 per share:          
  Authorized - 6,000,000 shares; Issued - 5,490,798 shares          
  Outstanding - 4,495,110, 4,487,895, 4,488,720, 4,491,789 and      1,830       1,830       1,830       1,830       1,830  
  4,486,245 shares, respectively          
Additional paid-in capital     7,497       7,430       7,384       7,339       7,446  
Retained earnings     88,314       85,583       83,861       81,200       79,226  
Accumulated other comprehensive loss, net of tax     (227 )     (1,651 )     (2,649 )     (2,059 )     (1,759 )
Treasury stock, at cost - 995,688, 1,002,903, 1,002,078, 999,009 and     (12,352 )     (12,352 )     (12,332 )     (12,262 )     (12,391 )
  1,004,553 shares, respectively          
           
  Total stockholders' equity     85,062       80,840       78,094       76,048       74,352  
           
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $   893,763   $   915,998   $   883,277   $   881,946   $   844,221  
           


PSB Holdings, Inc. 
Loan Composition by Purpose 
        Quarter ended:    
(dollars in thousands) March 31,
2019
December 31,
2018
September 30,
2018
June 30,
2018
March 31,
2018
             
  Residential real estate:          
             
  One to four family $   116,393   $   117,970   $   120,130   $   119,736   $   120,542  
  HELOC loans   23,631       24,746       25,880       25,529       24,730  
  Residential construction & development   18,893       16,413       13,483       12,464       12,174  
  Residential vacant land   5,052       5,370       5,507       7,017       6,451  
             
  Total Residential real estate     163,969       164,499       165,000       164,746       163,897  
             
  Commercial/Agricultural real estate:        
             
  Owner occupied:          
             
    Commercial real estate    147,435       145,480       141,043       136,248       135,170  
    SBA commercial real estate   1,741       1,769       1,888       1,560       1,863  
    Agriculture real estate   5,078       4,968       4,895       4,547       4,392  
    Construction and land development   6,523       1,186       3,031       1,088       -   
             
  Total Owner occupied     160,777       153,403       150,857       143,443       141,425  
             
  Non-owner occupied:          
             
    Commercial real estate   161,647       147,246       134,860       135,162       137,939  
    SBA commercial real estate   146       151       156       160       161  
    Agricultural real estate   0       315       321       331       338  
    Construction and land development   22,014       34,452       29,450       30,289       26,014  
    Commercial vacant land   15,404       13,800       14,414       11,535       10,809  
             
  Total Non-owner occupied     199,211       195,964       179,201       177,477       175,261  
             
  Commercial/Agricultural non-real estate:        
             
  Municipal non-real estate   6,353       6,806       6,661       8,532       6,037  
  Commercial line   58,117       68,300       62,357       64,652       51,684  
  Other commercial non-real estate   69,073       65,829       68,446       69,474       65,845  
  SBA commercial non-real estate   2,169       2,278       2,557       2,785       2,893  
  Agricultural non-real estate   3,699       3,994       4,366       3,396       3,095  
             
  Total Commercial/Ag. non-real esta te     139,411       147,207       144,387       148,839       129,554  
             
  Consumer non-real estate:          
             
  Consumer installment   2,793       2,755       2,629       2,415       2,183  
  Consumer line   344       243       216       220       250  
  Other consumer   190       218       212       199       204  
             
  Total Consumer non-real estate     3,327       3,216       3,057       2,834       2,637  
             
  Gross loans     666,695       664,289       642,502       637,339       612,774  
             
  Net deferred loan costs     272       213       212       237       211  
  Overdrafts     296       211       278       217       166  
  Allowance for loan losses     (6,507 )     (6,232 )     (6,280 )     (6,173 )     (6,387 )
             
  Total loans receivable $     660,756   $     658,481   $     636,712   $     631,620   $     606,764  
             


PSB Holdings, Inc. 
Deposit Composition 
    March 31,       December 31,
(dollars in thousands)  2019     2018     2018 
  $ %   $ %   $ %
                 
Non-interest bearing demand $   138,124 19.3 %   $   136,873 19.7 %   $   148,611 20.5 %
Interest-bearing demand and savings     243,463 34.0 %       237,327 34.2 %       254,857 35.1 %
Money market deposits     160,927 22.5 %       144,334 20.8 %       145,300 20.0 %
Retail and local time deposits <= $250     99,679 13.9 %       97,752 14.1 %       99,584 13.8 %
                 
Total core deposits     642,193 89.7 %       616,286 88.8 %       648,352 89.4 %
Retail and local time deposits > $250     24,990 3.5 %       18,702 2.7 %       22,131 3.0 %
Broker & national time deposits <= $250     2,732 0.4 %       5,847 0.8 %       2,483 0.3 %
Broker & national time deposits > $250     45,472 6.4 %       53,156 7.7 %       52,860 7.3 %
Totals $   715,387 100.0 %   $   693,991 100.0 %   $   725,826 100.0 %
                 


Nonperforming Assets as of: March   December 31,
(dollars in thousands)  2019   2018     2018 
         
Nonaccrual loans (excluding restructured loans) $   4,827   $   3,540     $   3,422  
Nonaccrual restructured loans     283       862         313  
Restructured loans not on nonaccrual     2,305       2,010         2,284  
Accruing loans past due 90 days or more     -        -          -   
         
Total nonperforming loans     7,415       6,412         6,019  
Foreclosed assets     113       260         113  
         
Total nonperforming assets $   7,528   $   6,672     $   6,132  
         
Nonperforming loans as a % of gross loans receivable   1.11 %   1.05 %     0.91 %
Total nonperforming assets as a % of total assets   0.84 %   0.79 %     0.67 %
Allowance for loan losses as a % of nonperforming loans   87.75 %   99.61 %     103.54 %
         


PSB Holdings, Inc. 
Average Balances ($000) and Interest Rates 
(dollars in thousands) 
   Quarter ended March 31, 2019     Quarter ended March 31, 2018 
   Average    Yield /    Average    Yield /
   Balance   Interest  Rate    Balance   Interest  Rate
Assets              
Interest-earning assets:              
  Loans (1)(2) $   664,845   $   8,346 5.09 %   $   614,616   $   6,984 4.61 %
  Taxable securities     105,120       713 2.75 %       111,596       676 2.46 %
  Tax-exempt securities (2)     65,111       501 3.12 %       56,432       424 3.05 %
  FHLB stock     2,015       35 7.04 %       1,871       23 4.99 %
  Other     21,342       126 2.39 %       18,494       71 1.56 %
               
  Total (2)     858,433       9,721 4.59 %       803,009       8,178 4.13 %
               
Non-interest-earning assets:              
  Cash and due from banks     11,325             10,711      
  Premises and equipment,              
  net     10,382             10,539      
  Cash surrender value ins     16,405             15,166      
  Other assets     8,977             8,851      
  Allowance for loan              
  losses     (6,259 )           (6,413 )    
               
  Total $   899,263         $   841,863      
               
Liabilities & stockholders' equity            
Interest-bearing liabilities:              
  Savings and demand              
  deposits $   253,299   $   472 0.76 %   $   240,557   $   268 0.45 %
  Money market deposits     146,625       299 0.83 %       138,143       145 0.43 %
  Time deposits     175,550       782 1.81 %       175,964       565 1.30 %
  FHLB borrowings     64,330       309 1.95 %       52,311       190 1.47 %
  Other borrowings     19,788       51 1.05 %       4,831       2 0.17 %
  Senior sub. notes     2,500       28 4.54 %       2,500       26 4.22 %
  Junior sub. debentures     7,732       91 4.77 %       7,732       66 3.46 %
               
  Total     669,824       2,032 1.23 %       622,038       1,262 0.82 %
               
Non-interest-bearing liabilities:            
  Demand deposits     137,783             137,135      
  Other liabilities     9,140             8,664      
  Stockholders' equity     82,516             74,026      
               
  Total $   899,263         $   841,863      
               
Net interest income   $   7,689       $   6,916  
Rate spread     3.36 %       3.31 %
Net yield on interest-earning assets   3.63 %       3.49 %
               
(1) Nonaccrual loans are included in the daily average loan balances outstanding. 
(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%. 


               
PSB Holdings, Inc. 
Average Balances ($000) and Interest Rates 
(dollars in thousands) 
   Quarter ended March 31, 2019     Quarter ended December 31, 2018 
   Average    Yield /    Average    Yield /
   Balance   Interest  Rate    Balance   Interest  Rate
Assets              
Interest-earning assets:              
  Loans (1)(2) $   664,845   $   8,346 5.09 %   $   652,342   $   8,137 4.95 %
  Taxable securities     105,120       713 2.75 %       105,269       714 2.69 %
  Tax-exempt securities (2)     65,111       501 3.12 %       68,576       537 3.11 %
  FHLB stock     2,015       35 7.04 %       2,004       25 4.95 %
  Other     21,342       126 2.39 %       13,748       77 2.22 %
               
  Total (2)     858,433       9,721 4.59 %       841,939       9,490 4.47 %
               
Non-interest-earning assets:              
  Cash and due from banks     11,325             11,855      
  Premises and equipment,              
  net     10,382             10,311      
  Cash surrender value ins     16,405             15,751      
  Other assets     8,977             9,796      
  Allowance for loan              
  losses     (6,259 )           (6,279 )    
               
  Total $   899,263         $   883,373      
               
Liabilities & stockholders' equity            
Interest-bearing liabilities:              
  Savings and demand              
  deposits $   253,299   $   472 0.76 %   $   235,839   $   370 0.62 %
  Money market deposits     146,625       299 0.83 %       143,618       280 0.77 %
  Time deposits     175,550       782 1.81 %       184,178       785 1.69 %
  FHLB borrowings     64,330       309 1.95 %       64,833       315 1.93 %
  Other borrowings     19,788       51 1.05 %       11,139       18 0.64 %
Senior sub. notes     2,500       28 4.54 %       2,500       28 4.44 %
  Junior sub. debentures     7,732       91 4.77 %       7,732       92 4.72 %
               
  Total     669,824       2,032 1.23 %       649,839       1,888 1.15 %
               
Non-interest-bearing liabilities:              
  Demand deposits     137,783             144,683      
  Other liabilities     9,140             9,326      
  Stockholders' equity     82,516             79,525      
               
  Total $   899,263         $   883,373      
               
Net interest income   $   7,689       $   7,602  
Rate spread     3.36 %       3.32 %
Net yield on interest-earning assets   3.63 %       3.58 %
               
(1) Nonaccrual loans are included in the daily average loan balances outstanding. 
(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.
             

Investor Relations Contact
PSB Holdings, Inc.
1905 Stewart Avenue
Wausau, WI 54401
888.929.9902
InvestorRelations@bankpeoples.com

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