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CST: 21/11/2019 11:43:09   

PSB Reports Third Quarter 2019 Earnings of $3.1 Million or $0.70 Per Share; Organic Loan and Deposit Growth Fuel Earnings

24 Days ago

WAUSAU, Wis., Oct. 28, 2019 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank serving North Central Wisconsin, reported third quarter earnings ending September 30, 2019 of $3.13 million, or $0.70 per share, compared to earnings of $0.57 per share on net income of $2.57 million during the June 2019 quarter, and $0.59 per share one year earlier on earnings of $2.66 million. The third quarter earnings growth reflected higher net interest income, and lower levels of non-interest expense partially offset by lower non-interest income compared to the June 2019 quarter. During the quarter, the Bank received an FDIC assessment credit on deposit premiums as the federal insurance fund reached a targeted reserve level. Loan production remained strong, with net loans receivable expanding 2.0% from the previous quarter and 8.6% relative to one year earlier.

“PSB achieved record earnings in the September 2019 quarter as continued commercial real estate loan growth was joined by increase mortgage banking income while reduced operating expenses from the consolidation of our Rhinelander branches and the effective elimination of our FDIC insurance premiums as FDIC reserves reached their targeted level. In the first quarter of 2020, we also expect to convert our Milwaukee area LPO office into a new branch office, adding a new market for deposit growth,” stated Scott Cattanach, President and CEO.

Financial Highlights (at or for the periods ended September 30, 2019, compared to June 30, 2019 and /or September 30, 2018, as applicable):

  • Return on shareholders’ equity was 13.94% for the quarter compared to 11.90% one quarter earlier and 13.64% for the third quarter one year earlier. Return on average assets was 1.34% for the third quarter of 2019 compared to 1.15% the previous quarter and 1.20% for the third quarter one year earlier. Excluding a $428,000 write-down related to a branch consolidation, June 2019 return on equity was 13.89% and return on average assets was 1.35%.
     
  • The efficiency ratio improved to 55.14% for the third quarter compared to 62.83% one quarter earlier and 59.75% in the year ago quarter. Excluding the branch consolidation write-down, June 2019 efficiency ratio was 58.47%.
     
  • Total assets grew to $949.7 million at September 30, 2019 from $901.3 million one quarter earlier and $883.3 million one year earlier. Loan and deposit growth supported balance sheet expansion.
     
  • The net interest margin decreased to 3.60% for the quarter ended September 30, 2019, compared to 3.72% the previous quarter and 3.48% for the third quarter one year earlier. The net interest margin for the second quarter of 2019 would have been 3.66% before reflecting a problem loan interest recovery of $109,000.
     
  • Tangible net book value was $20.24 per share at September 30, 2019, an increase of 4.28% from $19.41 per share as of June 30, 2019 and 16.52% from $17.37 per share at September 30, 2018.

Balance Sheet and Asset Quality Review

Total assets were $949.7 million as of September 30, 2019, compared to $901.3 million as of June 30, 2019, an increase of $48.4 million, or 5.4%. Total loans receivable increased $13.3 million with much of the new loans consisting of loans secured by commercial real estate. The commercial/agricultural real estate loan portfolio increased to $385.5 million at September 30, 2019 from $370.3 million three months earlier. Non-owner occupied commercial real estate loans represented the largest component of the loan portfolio at 29.8% of gross loans at September 30, 2019, followed by owner occupied commercial real estate loans at 25.5%, residential real estate at 24.1%, commercial/agricultural loans at 20.0% and consumer loans at 0.7%. Total agricultural related loans represent 1.25% of the total loan portfolio. The allowance for loan losses remained at 0.97% of gross loans at September 30, 2019. The annualized net charge-offs to average loans was 0.01% for the quarter ended September 30, 2019 compared to 0.00% at the end of the previous quarter and a net recovery of 0.06% one year earlier.

Non-performing assets increased to 0.57% of total assets at September 30, 2019, compared to 0.42% at June 30, 2019, and 0.67% at September 30, 2018. Although a $1.5 million Shopko related loan was removed from non-accrual during the September 2019 quarter as the borrower acquired a replacement tenant, a separate $2.2 million Shopko loan was added to non-accrual status, although the borrower continues to make all scheduled payments while searching for a new tenant. At September 30, 2019, non-performing assets consisted of $3.6 million in non-accrual loans, $510,000 in non-accrual restructured loans, $747,000 in restructured loans not on non-accrual, and $572,000 in other real estate owned. The former Rhinelander branch office written down in connection with the June 2019 branch consolidation represents $400,000 of the other real estate owned.

At September 30, 2019, cash and investments totaled $219.8 million compared to $186.3 million at June 30, 2019. During the course of the quarter, cash and investments increased due to deposit growth and new Federal Home Loan Bank advances secured to support anticipated loan origination activity. FHLB advances were $85.5 million at September 30, 2019 compared to $59.9 million at June 30, 2019 while other borrowings decreased to $17.4 million from $19.2 million over the same time period.

Total deposits increased to $736.2 million at September 30, 2019 compared to $715.2 million at June 30, 2019, up 2.9%. At September 30, 2019, interest-bearing demand and savings deposits accounted for 33.0% of total deposits, followed by money market deposits at 23.1%, noninterest-bearing demand deposits at 21.7% and retail and local time deposits at 13.9%. Broker and national time deposits accounted for 4.9% of total deposits at September 30, 2019 versus 5.9% the prior quarter and 9.3% one year earlier.

For the quarter ended September 30, 2019, stockholders’ equity increased $3.5 million, or 4.04%, to $90.6 million, compared to $87.1 million at June 30, 2019. Tangible net book value per share increased 4.28%, to $20.24 per share, at September 30, 2019, compared to $19.41 per share at June 30, 2019. PSB’s tangible equity to total assets was 9.53% at September 30, 2019, compared to 9.65% at June 30, 2019. 

Operations Review

Net interest income totaled $7.9 million (on a net margin of 3.60%) for the third quarter of 2019, compared to $7.8 million (on net margin of 3.72%) for the second quarter of 2019 and $7.3 million (on a net margin of 3.48%) for the third quarter of 2018. The second quarter net interest income included interest recapture associated with repayment of a problem loan of $109,000, which increased quarterly net margin by 0.06%. Compared to the June 30, 2019 quarter, loans and investment yields decreased 5 bps, excluding the June 2019 problem loan interest recapture, to 4.57% during the quarter ended September 30, 2019 while deposit and borrowing costs rose one bp to 1.26%. The decline in proforma loan and investment yields (excluding the loan interest recapture) were partially due to a larger average balance of cash and cash equivalents held during the quarter and a decrease in the prime lending rate due to actions by the Federal Reserve. Proforma loan yields decreased to 5.04% from 5.15% during the quarter ended June 30, 2019, as many loans repriced lower as the prime rate declined. 

The cost of interest-bearing liabilities increased slightly during the quarter, reflecting higher rates associated with time deposits partially offset by lower rates on money market accounts and Federal Home Loan Bank borrowings as the Federal Reserve reduced their discount rate. Deposit costs increased to $1.65 million for the quarter ended September 30, 2019 from $1.63 million the previous quarter. While the balance of FHLB advances increased $25.6 million, the weighted average costs declined to 1.70% from 1.81% the previous quarter.

“The composition of the deposit portfolio continues to change as we rely less on brokered deposits as lower-cost core deposits have increased. Therefore, total deposits increased $21.0 million in the third quarter, while core deposits increased $28.3 million. Changes in our portfolio mix, along with short-term national market rates declining have created an expectation that our funding costs have peaked,” said Mark C. Oldenberg, Chief Financial Officer.

The provision for loan losses totaled $150,000 during the third quarter of 2019 compared to the same provision level for the prior linked quarter. The provision primarily relates to new loan originations and an expanding loan portfolio.  

Total noninterest income for the third quarter of 2019 was $1.8 million compared to $1.9 million during the preceding quarter and $1.6 million for the third quarter of 2018. Service fees in the third quarter were $348,000 compared to $403,000 during the second quarter of 2019. Service fees declined $55,000 for the third quarter after the Company elected to refund $73,000 to business checking account customers associated with a correction and change of a service charge first imposed during 2018. Gains on sale of mortgage loans increased to $463,000 for the third quarter from $432,000 in the second quarter of 2019 as falling long-term U.S. Treasury rates have spurred mortgage refinance activity. Commissions on investment and insurance sales declined to $276,000 from $310,000 the prior quarter. At September 30, 2019, the bank had wealth assets under management totaling $240.6 million compared to $236.6 million at June 30, 2019 and $227.8 million at September 30, 2018. The year over year growth of assets under management was 5.6%.

Noninterest expense was $5.4 million for the third quarter of 2019 compared to $6.2 million for the second quarter. For the second quarter of 2019, noninterest expense increased due to $589,000 in expenses associated with writing down assets associated with the closing of the Rhinelander office. Additionally, the third quarter 2019 results reflect the elimination of FDIC insurance premiums as the FDIC insurance fund reached its targeted level saving $63,000 compared to the second quarter 2019. The Bank will not record further FDIC insurance expense until further notice from the FDIC.

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 eight 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
  Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
Earnings and dividends:  2019   2019   2019   2018   2018 
           
Interest income $ 10,098   $ 9,839   $ 9,604   $ 9,365   $ 9,063  
Interest expense $ 2,154   $ 2,041   $ 2,032   $ 1,888   $ 1,805  
Net interest income $ 7,944   $ 7,798   $ 7,572   $ 7,477   $ 7,258  
Provision for loan losses $ 150   $ 150   $ 400   $ 60   $ 10  
Other noninterest income $ 1,802   $ 1,903   $ 2,117   $ 1,718   $ 1,615  
Other noninterest expense $ 5,437   $ 6,167   $ 5,745   $ 5,829   $ 5,373  
Net income $ 3,131   $ 2,572   $ 2,731   $ 2,529   $ 2,661  
           
Basic earnings per share (3) $ 0.70   $ 0.57   $ 0.61   $ 0.56   $ 0.59  
Diluted earnings per share (3) $ 0.70   $ 0.57   $ 0.61   $ 0.56   $ 0.59  
Dividends declared per share (3) $ -   $ 0.20   $ -   $ 0.18   $ -  
Tangible net book value per share (4) $ 20.24   $ 19.41   $ 18.89   $ 17.98   $ 17.37  
           
Semi-annual dividend payout ratio n/a   16.95 % n/a   15.65 % n/a
Average common shares outstanding   4,473,583     4,486,022     4,494,568     4,488,397     4,490,621  
           
Balance sheet - average balances:          
           
Loans receivable, net of allowances for loss $ 689,057   $ 666,008   $ 658,586   $ 646,063   $ 634,469  
Assets $ 928,282   $ 893,998   $ 899,263   $ 883,373   $ 881,518  
Deposits $ 721,788   $ 713,910   $ 713,257   $ 708,318   $ 708,521  
Stockholders' equity $ 89,139   $ 86,656   $ 82,516   $ 79,525   $ 77,390  
           
Performance ratios:          
           
Return on average assets (1)   1.34 %   1.15 %   1.23 %   1.14 %   1.20 %
Return on average stockholders' equity (1)   13.94 %   11.90 %   13.42 %   12.62 %   13.64 %
Average stockholders' equity less accumulated        
other comprehensive income (loss) to          
average assets   9.52 %   9.68 %   9.27 %   9.22 %   9.02 %
Net loan charge-offs to average loans (1)   0.01 %   0.00 %   0.08 %   0.07 %   -0.06 %
Nonperforming loans to gross loans   0.70 %   0.53 %   1.11 %   0.91 %   0.84 %
Nonperforming assets to total assets   0.57 %   0.42 %   0.84 %   0.67 %   0.67 %
Allowance for loan losses to gross loans   0.97 %   0.97 %   0.98 %   0.94 %   0.98 %
Nonperforming assets to tangible equity plus the allowance for loan losses (4)   5.69 %   4.13 %   8.40 %   7.20 %   7.14 %
Net interest rate margin (1)(2)   3.60 %   3.72 %   3.63 %   3.58 %   3.48 %
Net interest rate spread (1)(2)   3.31 %   3.42 %   3.36 %   3.32 %   3.23 %
Service fee revenue as a percent of average demand deposits (1)   0.90 %   1.14 %   1.12 %   1.15 %   1.16 %
Noninterest income as a percent of gross revenue   15.14 %   16.21 %   18.06 %   15.50 %   15.12 %
Efficiency ratio (2)   55.14 %   62.83 %   58.59 %   62.54 %   59.75 %
Noninterest expenses to average assets (1)   2.32 %   2.77 %   2.59 %   2.62 %   2.42 %
Tangible equity to actual assets   9.53 %   9.65 %   9.50 %   8.81 %   8.83 %
           
Stock price information:          
           
High $ 27.50   $ 24.75   $ 23.45   $ 27.50   $ 27.45  
Low $ 23.55   $ 22.00   $ 21.25   $ 21.10   $ 24.08  
Last trade value at quarter-end $ 26.49   $ 24.00   $ 22.75   $ 22.50   $ 27.20  
           
(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.      



PSB Holdings, Inc.          
Consolidated Statements of Income          
  Quarter Ended
(dollars in thousands, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
except per share data - unaudited) 2019 2019 2019 2018 2018
           
Interest and dividend income:          
Loans, including fees $ 8,823 $ 8,629 $ 8,334 $ 8,125   $ 7,814  
Securities:          
Taxable   769   730   713   714     732  
Tax-exempt   378   389   396   424     394  
Other interest and dividends   128   91   161   102     123  
           
Total interest and dividend income   10,098   9,839   9,604   9,365     9,063  
           
Interest expense:          
Deposits   1,654   1,634   1,553   1,435     1,324  
FHLB advances   323   230   309   315     359  
Other borrowings   58   57   51   18     1  
Senior subordinated notes   28   28   28   28     28  
Junior subordinated debentures   91   92   91   92     93  
           
Total interest expense   2,154   2,041   2,032   1,888     1,805  
           
Net interest income   7,944   7,798   7,572   7,477     7,258  
Provision for loan losses   150   150   400   60     10  
           
Net interest income after provision for loan losses   7,794   7,648   7,172   7,417     7,248  
           
Noninterest income:          
Service fees   348   403   381   419     415  
Gain on sale of mortgage loans   463   432   175   227     286  
Mortgage loan servicing, net   89   84   125   129     115  
Investment and insurance sales commissions   276   310   333   430     299  
Net gain on sale of securities   -   121   18   -     -  
Increase in cash surrender value of life insurance   105   101   98   96     95  
Other noninterest income   521   452   987   417     405  
           
Total noninterest income   1,802   1,903   2,117   1,718     1,615  
           
Noninterest expense:          
Salaries and employee benefits   3,372   3,322   3,428   3,566     3,244  
Occupancy and facilities   510   591   601   526     499  
Loss (gain) on foreclosed assets   4   3   4   (17 )   (7 )
Data processing and other office operations   654   646   577   654     649  
Advertising and promotion   107   120   100   163     98  
FDIC insurance premiums   -   63   59   61     63  
Other noninterest expenses   790   1,422   976   876     827  
           
Total noninterest expense   5,437   6,167   5,745   5,829     5,373  
           
Income before provision for income taxes   4,159   3,384   3,544   3,306     3,490  
Provision for income taxes   1,028   812   813   777     829  
           
Net income $ 3,131 $ 2,572 $ 2,731 $ 2,529   $ 2,661  
Basic earnings per share $ 0.70 $ 0.57 $ 0.61 $ 0.56   $ 0.59  
Diluted earnings per share $ 0.70 $ 0.57 $ 0.61 $ 0.56   $ 0.59  
           



PSB Holdings, Inc.          
Consolidated Statements of Income          
  Three Months Ended   Nine Months Ended
(dollars in thousands, September   September
except per share data - unaudited) 2019 2018   2019 2018
           
Interest and dividend income:          
Loans, including fees $ 8,823 $ 7,814     $ 25,786 $ 22,364  
Securities:          
Taxable   769   732       2,212   2,085  
Tax-exempt   378   394       1,163   1,093  
Other interest and dividends   128   123       380   282  
           
Total interest and dividend income   10,098   9,063       29,541   25,824  
           
Interest expense:          
Deposits   1,654   1,324       4,841   3,380  
FHLB advances   323   359       862   770  
Other borrowings   58   1       166   6  
Senior subordinated notes   28   28       84   83  
Junior subordinated debentures   91   93       274   234  
           
Total interest expense   2,154   1,805       6,227   4,473  
           
Net interest income   7,944   7,258       23,314   21,351  
Provision for loan losses   150   10       700   70  
           
Net interest income after provision for loan losses   7,794   7,248       22,614   21,281  
           
Noninterest income:          
Service fees   348   415       1,132   1,192  
Gain on sale of mortgage loans   -   -       -   -  
Mortgage banking income   552   401       1,368   1,172  
Investment and insurance sales commissions   276   299       919   877  
Net gain on sale of securities   -   -       139   -  
Increase in cash surrender value of life insurance   105   95       304   277  
Other noninterest income   521   405       1,960   1,240  
           
Total noninterest income   1,802   1,615       5,822   4,758  
           
Noninterest expense:          
Salaries and employee benefits   3,372   3,244       10,122   9,628  
Occupancy and facilities   510   499       1,702   1,589  
Loss (gain) on foreclosed assets   4   (7 )     11   (17 )
Data processing and other office operations   654   649       1,877   1,909  
Advertising and promotion   107   98       327   257  
FDIC insurance premiums   -   63       122   186  
Other noninterest expenses   790   827       3,188   2,332  
           
Total noninterest expense   5,437   5,373       17,349   15,884  
           
Income before provision for income taxes   4,159   3,490       11,087   10,155  
Provision for income taxes   1,028   829       2,653   2,372  
           
Net income $ 3,131 $ 2,661     $ 8,434 $ 7,783  
Basic earnings per share $ 0.70 $ 0.59     $ 1.88 $ 1.73  
Diluted earnings per share $ 0.70 $ 0.59     $ 1.88 $ 1.73  
           



PSB Holdings, Inc.          
Consolidated Statements of Comprehensive Income        
           
  Three Months Ended   Nine Months Ended
  September 30,   September 30,
(dollars in thousands - unaudited)  2019   2018     2019   2018 
           
Net income $ 3,131   $ 2,661     $ 8,434   $ 7,783  
           
Other comprehensive income, net of tax:          
           
Unrealized gain (loss) on securities available for sale   599     (639 )     3,109     (1,919 )
           
Reclassification adjustment for security gain included in net income   -     -       (101 )   -  
           
Amortization of unrealized gain included in net income on securities available for sale transferred to securities held to maturity   (2 )   (8 )     (8 )   (33 )
           
Unrealized loss on interest rate swap   (46 )   48       (264 )   (11 )
           
Reclassification adjustment of interest rate swap settlements included in earnings   9     9       18     11  
           
Other comprehensive income (loss)   560     (590 )     2,754     (1,952 )
           
Comprehensive income $ 3,691   $ 2,071     $ 11,188   $ 5,831  
           



PSB Holdings, Inc.          
Consolidated Balance Sheets          
September 30, 2019, June 30, 2019, March 31, 2019, and September 30, 2018 unaudited, December 31, 2018 derived from audited financial statements          
  Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
(dollars in thousands, except per share data)   2019     2019     2019     2018     2018  
Assets          
           
Cash and due from banks $ 17,954   $ 11,825   $ 8,917   $ 18,923   $ 15,348  
Interest-bearing deposits   1,059     2,306     349     501     930  
Federal funds sold   30,415     4,552     12,989     24,554     14,246  
           
Cash and cash equivalents   49,428     18,683     22,255     43,978     30,524  
Securities available for sale (at fair value)   127,587     123,586     127,368     113,821     114,997  
Securities held to maturity (fair values of $41,311, $42,511, $43,338, $57,607 and $59,341 respectively   40,791     42,074     43,061     58,311     60,421  
Bank certificates of deposit (at cost)   1,984     1,984     2,976     2,976     2,976  
Loans held for sale   335     50     245     358     -  
Loans receivable, net   691,289     678,247     660,756     658,481     636,712  
Accrued interest receivable   2,803     2,844     2,826     2,777     2,709  
Foreclosed assets   572     172     113     113     483  
Premises and equipment, net   10,212     9,749     10,426     10,209     10,339  
Mortgage servicing rights, net   1,720     1,738     1,781     1,805     1,805  
Federal Home Loan Bank stock (at cost)   2,173     1,662     1,657     2,330     2,011  
Cash surrender value of bank-owned life insurance   16,668     16,564     16,463     16,365     15,407  
Other assets   4,101     3,961     3,836     4,474     4,893  
           
TOTAL ASSETS $ 949,663   $ 901,314   $ 893,763   $ 915,998   $ 883,277  
           
Liabilities          
           
Non-interest-bearing deposits $ 159,897   $ 143,423   $ 138,124   $ 148,611   $ 151,484  
Interest-bearing deposits   576,288     571,794     577,263     577,215     565,799  
           
Total deposits   736,185     715,217     715,387     725,826     717,283  
           
Federal Home Loan Bank advances   85,496     59,915     51,165     81,071     64,660  
Other borrowings   17,411     19,179     22,870     8,379     4,864  
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   9,715     9,668     9,047     9,650     8,144  
           
Total liabilities   859,039     814,211     808,701     835,158     805,183  
           
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 - 4,471,216, 4,480,585, 4,495,110, 4,487,895 and          
4,488,720 shares, respectively   1,830     1,830     1,830     1,830     1,830  
Additional paid-in capital   7,543     7,490     7,497     7,430     7,384  
Retained earnings   93,117     89,986     88,314     85,583     83,861  
Accumulated other comprehensive income (loss), net of tax   1,103     543     (227 )   (1,651 )   (2,649 )
Treasury stock, at cost - 1,019,582, 1,010,213, 995,688, 1,002,903 and          
1,002,078 shares, respectively   (12,969 )   (12,746 )   (12,352 )   (12,352 )   (12,332 )
           
Total stockholders' equity   90,624     87,103     85,062     80,840     78,094  
           
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 949,663   $ 901,314   $ 893,763   $ 915,998   $ 883,277  
           



PSB Holding, Inc.              
Loan Composition by Purpose              
Quarter-ended (dollars in thousands)              
    Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Dec 31,
2018
Sep 30,
2018
Jun 30,
2018
Mar 31,
2018
Total Loans              
Residential real estate              
  One to four family 119,620   117,093   116,393   117,970   120,130   119,736   120,542  
  HELOC loans 22,855   22,158   23,631   24,746   25,880   25,529   24,730  
  Residential construction & development 21,273   20,937   18,893   16,413   13,483   12,464   12,174  
  Residential vacant land 4,299   4,680   5,052   5,370   5,507   7,017   6,451  
  Total Residential real estate 168,047   164,868   163,969   164,499   165,000   164,746   163,897  
                 
Commercial/Agricultural real estate              
  Owner occupied              
  Commercial real estate 158,423   149,507   147,435   145,480   141,043   136,248   135,170  
  SBA commercial real estate 1,367   1,386   1,741   1,769   1,888   1,560   1,863  
  Agriculture real estate 5,139   5,764   5,078   4,968   4,895   4,547   4,392  
  Construction and land development 12,742   7,832   6,523   350   -   -   -  
  Total Owner occupied 177,671   164,489   160,777   152,567   147,826   142,355   141,425  
                 
  Non-owner occupied              
  Commercial real estate 179,136   168,809   161,647   147,246   134,860   135,162   137,939  
  SBA commercial real estate 863   141   146   151   156   160   161  
  Agricultural real estate 0   0   0   315   321   331   338  
  Construction and land development 13,301   22,159   22,014   35,288   32,481   31,377   26,014  
  Commercial vacant land 14,532   14,702   15,404   13,800   14,414   11,535   10,809  
  Total Non-owner occupied 207,832   205,811   199,211   196,800   182,232   178,565   175,261  
                 
Commercial/Agricultural non-real estate              
  Municipal non-real estate 6,384   9,017   6,353   6,806   6,661   8,532   6,037  
  Commercial line 62,991   65,252   58,117   68,300   62,357   64,652   51,684  
  Other commercial non-real estate 64,418   65,500   69,073   65,829   68,446   69,474   65,845  
  SBA commercial non-real estate 1,819   2,252   2,169   2,278   2,557   2,785   2,893  
  Agricultural non-real estate 3,606   3,491   3,699   3,994   4,366   3,396   3,095  
  Total Commercial/Agricultural non-real estate 139,218   145,512   139,411   147,207   144,387   148,839   129,554  
                 
Consumer non-real estate              
  Consumer installment 3,319   3,093   2,793   2,755   2,629   2,415   2,183  
  Consumer line 1,343   304   344   243   216   220   250  
  Other consumer 197   195   190   218   212   199   204  
  Total Consumer non-real estate 4,859   3,592   3,327   3,216   3,057   2,834   2,637  
Gross loans 697,627   684,272   666,695   664,289   642,502   637,339   612,774  
                 
  Net deferred loan costs 295   300   272   213   212   237   211  
  Overdrafts 168   339   296   211   278   217   166  
  Allowance for loan losses (6,801 ) (6,664 ) (6,507 ) (6,232 ) (6,280 ) (6,173 ) (6,387 )
Total loans receivable 691,289   678,247   660,756   658,481   636,712   631,620   606,764  
                 



PSB Holdings, Inc.                
Deposit Composition                
    September 30,     December 31,
(dollars in thousands) 2019
  2018
  2018
  $ %   $ %   $ %
                 
Non-interest bearing demand $ 159,897 21.70 %   $ 151,484 21.10 %   $ 148,611 20.50 %
Interest-bearing demand and savings   242,713 33.00 %     246,811 34.40 %     254,857 35.10 %
Money market deposits   170,403 23.10 %     132,887 18.50 %     145,300 20.00 %
Retail and local time deposits <= $250   103,074 14.00 %     98,101 13.70 %     99,584 13.80 %
                 
Total core deposits   676,087 91.80 %     629,283 87.70 %     648,352 89.40 %
Retail and local time deposits > $250   24,549 3.30 %     21,194 3.00 %     22,131 3.00 %
Broker & national time deposits <= $250   4,960 0.70 %     3,225 0.40 %     2,483 0.30 %
Broker & national time deposits > $250   30,589 4.20 %     63,581 8.90 %     52,860 7.30 %
Totals $ 736,185 100.00 %   $ 717,283 100.0 %   $ 725,826 100.0 %
                 



Nonperforming Assets as of: September   December 31,
(dollars in thousands) 2019 2018   2018
           
Nonaccrual loans (excluding restructured loans) $ 3,609   $ 3,024     $ 3,422  
Nonaccrual restructured loans   510     325       313  
Restructured loans not on nonaccrual   747     2,054       2,284  
Accruing loans past due 90 days or more   -     -       -  
           
Total nonperforming loans   4,866     5,403       6,019  
Other real estate owned   572     483       113  
           
Total nonperforming assets $ 5,438   $ 5,886       $ 6,132  
           
Nonperforming loans as a % of gross loans receivable   0.70 %   0.84 %     0.91 %
Total nonperforming assets as a % of total assets   0.57 %   0.67 %     0.67 %
Allowance for loan losses as a % of nonperforming loans     139.77 %   116.23 %     103.54 %
           



PSB Holdings, Inc.              
Average Balances ($000) and Interest Rates          
(dollars in thousands)              
  Quarter ended September 30, 2019   Quarter ended September 30, 2018
  Average   Yield /   Average   Yield /
  Balance Interest Rate   Balance Interest Rate
Assets              
Interest-earning assets:              
Loans (1)(2) $ 695,776   $ 8,838 5.04 %   $ 640,656   $ 7,828 4.85 %
Taxable securities   107,801     769 2.83 %     111,937     732 2.59 %
Tax-exempt securities (2)   59,537     478 3.19 %     64,535     499 3.07 %
FHLB stock   1,970     20 4.03 %     2,260     20 3.51 %
Other   22,493     108 1.90 %     21,145     103 1.93 %
               
Total (2)   887,577     10,213 4.57 %     840,533     9,182 4.33 %
               
Non-interest-earning assets:            
Cash and due from banks   12,113           11,702      
Premises and equipment,              
net   10,136           10,461      
Cash surrender value ins   16,606           15,351      
Other assets   8,569           9,658      
Allowance for loan              
losses   (6,719 )         (6,187 )    
               
Total $ 928,282         $ 881,518      
               
Liabilities & stockholders' equity            
Interest-bearing liabilities:              
Savings and demand              
deposits $ 239,490   $ 495 0.82 %   $ 246,596   $ 393 0.63 %
Money market deposits   164,801     329 0.79 %     133,873     186 0.55 %
Time deposits   164,899     830 2.00 %     186,146     745 1.59 %
FHLB borrowings   75,325     323 1.70 %     74,045     359 1.92 %
Other borrowings   22,079     58 1.04 %     2,020     1 0.20 %
Senior sub. notes   2,500     28 4.44 %     2,500     28 4.44 %
Junior sub. debentures   7,732     91 4.67 %     7,732     93 4.77 %
               
Total   676,826     2,154 1.26 %     652,912     1,805 1.10 %
               
Non-interest-bearing liabilities:            
Demand deposits   152,598           141,906      
Other liabilities   9,719           9,310      
Stockholders' equity   89,139           77,390      
               
Total $ 928,282         $ 881,518      
               
Net interest income   $ 8,059       $ 7,377  
Rate spread     3.31 %       3.23 %
Net yield on interest-earning assets   3.60 %       3.48 %
               
(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)              
  Nine months ended September 30, 2019 Nine months ended September 30, 2018
  Average   Yield/   Average   Yield/
  Balance Interest Rate   Balance Interest Rate
Assets              
Interest-earning assets:              
Loans (1)(2) $ 677,846   $ 25,824 5.09 %   $ 627,026   $ 22,401 4.78 %
Taxable securities   106,559     2,212 2.78 %     110,104     2,085 2.53 %
Tax-exempt securities (2)   62,146     1,472 3.17 %     60,601     1,384 3.05 %
FHLB stock   1,859     79 5.68 %     2,003     61 4.07 %
Other   18,660     301 2.16 %     17,591     221 1.68 %
               
Total (2)   867,070     29,888 4.61 %     817,325     26,152 4.28 %
               
Non-interest-earning assets:            
Cash and due from banks   11,428           10,666      
Premises and equipment,              
net   10,313           10,522      
Cash surrender value ins   16,506           15,260      
Other assets   8,705           9,260      
Allowance for loan              
losses   (6,517 )         (6,288 )    
               
Total $ 907,505         $ 856,745      
               
Liabilities & stockholders' equity            
Interest-bearing liabilities:              
Savings and demand              
deposits $ 244,189   $ 1,384 0.76 %   $ 241,562   $ 950 0.53 %
Money market deposits   157,800     1,020 0.86 %     136,967     490 0.48 %
Time deposits   170,611     2,437 1.91 %     179,863     1,940 1.44 %
FHLB borrowings   63,597     862 1.81 %     60,448     770 1.70 %
Other borrowings   21,398     166 1.04 %     3,757     6 0.21 %
Senior sub. notes   2,500     84 4.49 %     2,500     83 4.44 %
Junior sub. debentures   7,732     274 4.74 %     7,732     234 4.05 %
               
Total   667,827     6,227 1.25 %     632,829     4,473 0.95 %
               
Non-interest-bearing liabilities:            
Demand deposits   143,990           139,167      
Other liabilities   9,573           8,821      
Stockholders' equity   86,115           75,928      
               
Total $ 907,505         $ 856,745      
               
Net interest income   $ 23,661       $ 21,679  
Rate spread     3.36 %       3.33 %
Net yield on interest-earning assets   3.65 %       3.55 %
               
(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 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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