PSB Holdings, Inc. Reports Earnings of $0.60 Per Share for Q1 2025; Net Interest Margin Improves For Fourth Consecutive Quarter

Rhea-AI Summary

PSB Holdings Inc (OTCQX: PSBQ) reported Q1 2025 earnings of $0.60 per share on net income of $2.4 million, compared to $0.73 per share in Q4 2024 and $0.39 per share in Q1 2024. Key highlights include:

- Net interest income decreased to $10.3 million with improved margin of 3.03%
- Loans increased $18.2 million (2%) to $1.10 billion in Q1
- Total deposits decreased $17.3 million to $1.13 billion
- Non-performing assets increased to $13.0 million (0.89% of total assets)
- Tangible book value per share grew 11.3% year-over-year to $26.94

The bank acquired Larson Financial Group in January 2025 and reported higher non-interest expenses due to increased salaries and employee benefits. Management expects operating expenses to decline next quarter and remains cautiously optimistic for earnings growth in 2025.

Positive

• Net interest margin improved for fourth consecutive quarter to 3.03%
• Loan portfolio grew 2% ($18.2 million) in Q1 2025
• Tangible book value per share increased 11.3% year-over-year
• Year-over-year earnings per share increased 54% from $0.39 to $0.60

Negative

• Quarterly earnings declined from $0.73 to $0.60 per share vs Q4 2024
• Non-performing assets increased $2.6 million to $13.0 million (0.89% of assets)
• Total deposits decreased $17.3 million to $1.13 billion
• Non-interest expenses increased $967,000 to $9.0 million

WAUSAU, Wis., April 24, 2025 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported first quarter earnings ending March 31, 2025 of $0.60 per common share on net income of $2.4 million, compared to $0.73 per common share on net income of $3.0 million during the fourth quarter ending December 31, 2024, and $0.39 per common share on net income of $1.6 million during the first quarter ending March 31, 2024.

PSB’s first quarter 2025 operating results reflected the following changes from the fourth quarter of 2024: (1) a stronger net interest margin as asset yields rose and funding costs declined; (2) the addition of a provision for loan losses due to loan growth; (3) higher non-interest income due to lower losses on the sale of securities and an increase in investment and insurance sale commissions; (4) higher non-interest expenses due to higher salaries and employee benefit expenses associated with commercial loan growth incentives and the addition of wealth management personnel; and (5) loan growth of 2% during the quarter.

“We are encouraged with the steady improvements in our net interest margin while also continuing solid loan growth as customers are seeing value in our relationship. We expect operating expenses to decline in the coming quarter and are cautiously optimistic for earnings growth for the remainder of 2025,” stated Scott Cattanach, President and CEO.

March 31, 2025, Highlights:

• Net interest income decreased $121,000 to $10.3 million for the quarter ended March 31, 2025, from $10.4 million for the quarter ended December 31, 2024, due in part to two fewer days during the quarter. Meanwhile, asset and loan yields increased while funding costs declined slightly.

• Noninterest income increased $589,000 to $1.9 million for the quarter ended March 31, 2025, compared to $1.3 million the prior quarter due to a smaller loss on the sale of securities and an increase in investment and insurance sales commissions.

• Noninterest expenses increased to $967,000 to $9.0 million during the quarter ended March 31, 2025 from $8.0 million for the quarter ended December 31, 2024, reflecting higher salary and benefit expenses associated with growth incentive payments and the addition of wealth management personnel in the purchase of the Larson Financial Group, LLC.

• Loans increased $18.2 million, or 2% in the first quarter ended March 31, 2025, to $1.10 billion largely due to new commercial & industrial, commercial real estate and construction and development loans. Allowance for credit losses was 1.12% of gross loans.

• Non-performing assets increased $2.6 million to $13.0 million, or 0.89% of total assets at March 31, 2025 compared to the previous quarter, from addition of commercial rental real estate units undergoing a sale process.

• Total deposits decreased $17.3 million to $1.13 billion at March 31, 2025 from $1.15 billion at December 31, 2024, with the decrease largely consisting of normal commercial money market deposit outflows and seasonal municipal deposit outflows.

• Return on average tangible common equity was 9.21% for the quarter ended March 31, 2025, compared to 11.07% the prior quarter and 6.57% in the year ago quarter.

• Tangible book value per common share was up 11.3% over the past year to $26.94 at March 31, 2025, compared to $24.21 at March 31, 2024. Additionally, PSB paid dividends totaling $0.64 per share during the past year.

• On January 21, 2025, the Bank acquired Larson Financial Group, LLC, a financial advisory company based in Wausau, WI.
  

Balance Sheet and Asset Quality Review

Total assets decreased $6.2 million during the first quarter to $1.46 billion at March 31, 2025, compared to $1.47 billion at December 31, 2024. Cash and cash equivalents decreased $17.8 million to $22.7 million at March 31, 2025 from $40.5 million at December 31, 2024 as funds were used to originate new loans and fund the outflow of seasonal municipal deposits and normal commercial customer treasury management operations. Cash and cash equivalents increased $6.8 million from one year earlier. Investment securities available for sale decreased $6.5 million to $182.6 million at March 31, 2025, from $189.1 million one quarter earlier. Total collateralized liquidity available to meet cash demands was approximately $323 million at March 31, 2025, with an additional $323 million that could be raised in a short time frame from the brokered CDs market.

Gross loans receivable increased $19.3 million to $1.14 billion at March 31, 2025, compared to one quarter earlier, due primarily to increased commercial real estate, construction & development and commercial & industrial lending. Commercial real estate loans increased $11.3 million to $562.9 million at March 31, 2025 and gross construction and development lending increased $7.7 million to $87.1 million at March 31, 2025, compared to one quarter earlier. Commercial & industrial loans increased $7.2 million to $124.1 million at March 31, 2025. Offsetting gross loan growth, residential real estate loans decreased $3.7 million from the prior quarter to $333.7 million, municipal loans decreased $2.8 million to $12.9 million and consumer installment loans decreased $0.4 million to $4.7 million. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 57.2% of gross loans, followed by residential real estate loans at 29.3% of gross loans, commercial non-real estate loans at 13.1% and consumer loans at 0.4%.

The allowance for credit losses decreased slightly to 1.12% of gross loans at March 31, 2025, from 1.13% the prior quarter. Annualized net charge-offs to average loans were 0.02% for the quarter ended March 31, 2025. Non-performing assets increased $2.6 million to $13.0 million, or 0.89% of total assets at March 31, 2025 from 0.71% at December 31, 2024. The increase reflects a loan relationship we expect to have $1.5 million in repayment in the next 6 months as collateral undergoes a sales process. No specific reserves have been established on the loan as ample collateral currently appears available. Approximately 80% of the non-performing assets consisted of four loan relationships.

Goodwill and other intangibles increased slightly during the quarter ended March 31, 2025 to $3.8 million from $2.7 million one quarter earlier. The increase in intangibles relates to the acquisition of Larson Financial Group, LLC in January 2025.

Total deposits decreased $17.3 million to $1.13 billion at March 31, 2025, from $1.15 billion at December 31, 2024. The decrease in deposits reflects a $22.9 million decrease in uninsured deposits during the first quarter composed primarily of money market deposits, consisting of normal commercial customer operation outflows, particularly with one customer accounting for $18 million of the decline who reinvested following the sale of their business in 2024. Meanwhile, brokered deposits increased $22.9 million and insured and collateralized deposits increased $5.6 million in the quarter ended March 31, 2025.

At March 31, 2025, non-interest bearing demand deposits decreased to 21.8% of total deposits from 22.6% the prior quarter, while interest-bearing demand and savings deposits remained at 29.4% of deposits.

FHLB advances increased $8.0 million to $170.3 million at March 31, 2025, compared to $162.3 million at December 31, 2024.

Tangible stockholder equity as a percentage of total tangible assets increased to 8.05% at March 31, 2025, compared to 7.76% at December 31, 2024, and 7.60% at March 31, 2024.

Tangible net book value per common share increased $2.73 to $26.94, at March 31, 2025, compared to $24.21 one year earlier, an increase of 11.3% after dividends of $0.64 were paid to shareholders. Relative to the prior quarter’s tangible book value per common share of $25.98, tangible net book value per common share increased primarily due to earnings and an increase in the fair market value in the investment portfolios. The accumulated other comprehensive loss on the investment portfolio was $16.7 million at March 31, 2025, compared to $19.3 million one quarter earlier.

Operations Review

Net interest income decreased to $10.3 million (on a net margin of 3.03%) for the first quarter of 2025, from $10.4 million (on a net margin of 2.96%) for the fourth quarter of 2024, and increased from $9.3 million (on a net margin of 2.80%) for the first quarter of 2024. The lower net interest income in the current period while net margin also increased primarily relates to a lower level of earnings assets during the quarter. Meanwhile, earning asset yields increased to 5.35% during the first quarter of 2025 from 5.29% the prior period and interest bearing deposit and borrowing costs decreased four basis points to 3.02% compared to 3.06% during the fourth quarter of 2024. Relative to one year earlier, earning asset yields were up 23 basis points while interest bearing deposit and borrowing costs increased two basis points.

The increase in earning asset yields was due to higher yields on loan originations, loan renewals, security purchases and security repricing. Loan yields increased during the first quarter of 2025 to 5.82% from 5.80% for the fourth quarter of 2024. Taxable security yields were 3.35% for the quarter ended March 31, 2025, compared to 3.16% for the quarter ended December 31, 2024, while tax-exempt security yields increased to 3.35% for the quarter ended March 31, 2025 from 3.31% the previous quarter. The increase in taxable security yields reflects some security restructuring activity from security sales in the prior quarter more fully realized in the current quarter.

The cost of all deposits increased slightly to 2.09% for the quarter ended March 31, 2025, compared to 2.08% the prior quarter, while the overall cost of funds decreased four basis points to 3.02% from 3.06% during the same time period. Deposit costs for time deposits decreased during the first quarter with time deposits decreasing five basis points to 3.97% and money market deposits decreasing 12 basis points to 2.44%. Savings and demand deposits increased three basis points to 1.87%. FHLB advances increased one basis point to 4.41% for the quarter ended March 31, 2025.

Total noninterest income increased $589,000 during the first quarter of 2025 to $1.9 million, from $1.3 million for the fourth quarter of 2024 due primarily to a lower net loss on sale of securities and increased investment and insurance sales commissions of $100,000. Mortgage banking income decreased to $250,000 in the first quarter from $414,000 the prior quarter while various increases in nominal revenue sources accounted for the remaining increase in noninterest income. At March 31, 2025, the Bank serviced $373.4 million in secondary market residential mortgage loans for others which provide fee income.

Noninterest expenses increased $967,000 to $9.0 million for the first quarter of 2025, compared to $8.0 million for the fourth quarter of 2024, and increased $644,000 from $8.3 million for the first quarter of 2024. On a linked quarter basis, December 2024 quarter salary and benefits expense was reduced from year-end final adjustments to incentive estimates, while March 2025 quarterly salary and benefits increased as commercial growth, and related incentives, were greater than budgeted. The LFG acquisition also increased wage and benefit expense. Intangible amortization increased slightly during the first quarter related to the acquisition. Occupancy and facilities costs increased $95,000, data processing and other office operation expenses increased $90,000 and various other noninterest expenses increased $177,000 during the first quarter ended March 31, 2025.

Taxes decreased $51,000 during the first quarter to $473,000, from $524,000 one quarter earlier. The effective tax rate for the quarter ended March 31, 2025, was 15.6% compared to 14.4% for the fourth quarter ended December 31, 2024.

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 northcentral and southeastern Wisconsin from twelve full-service banking locations in Marathon, Oneida, Vilas, Portage, Milwaukee and Waukesha counties and a loan production office in Dane County. 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

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about PSB’s business based, in part, on assumptions made by management and include, without limitation, statements with respect to the potential growth of PSB, its future profits, expected stock repurchase levels, future dividend rates, future interest rates, and the adequacy of its capital position. Forward-looking statements can be affected by known and unknown risks, uncertainties, and other factors, including, but not limited to, strength of the economy, the effects of government policies, including interest rate policies, risks associated with the execution of PSB’s vision and growth strategy, including with respect to current and future M&A activity, and risks associated with global economic instability. The forward-looking statements in this press release speak only as of the date on which they are made and PSB does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

PSB Holdings, Inc.
Consolidated Balance Sheets
March 31, 2025, September 30, June 30, and March 31, 2024, unaudited, December 31, 2024 derived from audited financial statements
		Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(dollars in thousands, except per share data)			2025			2024			2024			2024			2024
Assets
Cash and due from banks		$	19,628		$	21,414		$	23,554		$	16,475		$	13,340
Interest-bearing deposits			702			3,724			5,126			251			105
Federal funds sold			2,351			15,360			58,434			69,249			2,439
Cash and cash equivalents			22,681			40,498			87,114			85,975			15,884
Securities available for sale (at fair value)			182,594			189,086			174,911			165,177			165,566
Securities held to maturity (fair values of $77,375, $79,654, $82,389, $79,993 and $81,234 respectively)			85,373			86,748			86,847			86,825			87,104
Equity securities			2,847			2,782			1,752			1,661			1,474
Loans held for sale			734			217			-			2,268			865
Loans receivable, net (allowance for credit losses of $12,392, $12,342, $12,598, $12,597 and $12,494 respectively)			1,096,422			1,078,204			1,057,974			1,074,844			1,081,394
Accrued interest receivable			5,184			5,042			4,837			5,046			5,467
Foreclosed assets			300			-			-			-			-
Premises and equipment, net			13,522			13,805			14,065			14,048			13,427
Mortgage servicing rights, net			1,717			1,742			1,727			1,688			1,657
Federal Home Loan Bank stock (at cost)			8,825			8,825			8,825			8,825			7,006
Cash surrender value of bank-owned life insurance			24,897			24,732			24,565			24,401			24,242
Other intangibles			353			195			212			229			249
Goodwill			3,495			2,541			2,541			2,541			2,541
Other assets			10,828			11,539			10,598			12,111			11,682
TOTAL ASSETS		$	1,459,772		$	1,465,956		$	1,475,968		$	1,485,639		$	1,418,558
Liabilities
Non-interest-bearing deposits		$	245,672		$	259,515		$	265,078		$	250,435		$	247,608
Interest-bearing deposits			884,364			887,834			874,035			901,886			865,744
Total deposits			1,130,036			1,147,349			1,139,113			1,152,321			1,113,352
Federal Home Loan Bank advances			170,250			162,250			181,250			184,900			158,250
Other borrowings			6,343			6,872			6,128			5,775			8,096
Senior subordinated notes			4,783			4,781			4,779			4,778			4,776
Junior subordinated debentures			13,049			13,023			12,998			12,972			12,947
Allowance for credit losses on unfunded commitments			672			672			477			477			477
Accrued expenses and other liabilities			13,554			14,723			12,850			13,069			10,247
Total liabilities			1,338,687			1,349,670			1,357,595			1,374,292			1,308,145
Stockholders' equity
Preferred stock – no par value:
Authorized – 30,000 shares; Issued – 7,200 shares
Outstanding – 7,200 shares, respectively			7,200			7,200			7,200			7,200			7,200
Common stock – no par value with a stated value of $1.00 per share:
Authorized – 18,000,000 shares; Issued – 5,490,798 shares
Outstanding – 4,084,708, 4,092,977, 4,105,594, 4,128,382 and 4,147,649 shares, respectively			1,830			1,830			1,830			1,830			1,830
Additional paid-in capital			8,608			8,610			8,567			8,527			8,466
Retained earnings			142,277			139,838			138,142			135,276			134,271
Accumulated other comprehensive income (loss), net of tax			(16,692	)		(19,314	)		(15,814	)		(20,503	)		(20,775	)
Treasury stock, at cost – 1,406,090, 1,397,821, 1,385,204, 1,362,416 and 1,343,149 shares, respectively			(22,138	)		(21,878	)		(21,552	)		(20,983	)		(20,579	)
Total stockholders' equity			121,085			116,286			118,373			111,347			110,413
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,459,772		$	1,465,956		$	1,475,968		$	1,485,639		$	1,418,558

PSB Holdings, Inc.
Consolidated Statements of Income
		Quarter Ended
		Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(dollars in thousands, except per share data – unaudited)			2025			2024			2024			2024			2024
Interest and dividend income:
Loans, including fees		$	15,782		$	15,646		$	15,634		$	15,433		$	15,109
Securities:
Taxable			1,641			1,545			1,345			1,295			1,197
Tax-exempt			517			522			522			521			526
Other interest and dividends			345			948			699			265			343
Total interest and dividend income			18,285			18,661			18,200			17,514			17,175
Interest expense:
Deposits			5,884			6,027			5,905			5,838			6,082
FHLB advances			1,792			1,890			2,038			1,860			1,450
Other borrowings			47			57			57			58			60
Senior subordinated notes			59			59			59			58			59
Junior subordinated debentures			248			252			252			255			251
Total interest expense			8,030			8,285			8,311			8,069			7,902
Net interest income			10,255			10,376			9,889			9,445			9,273
Provision for credit losses			117			–			–			100			95
Net interest income after provision for credit losses			10,138			10,376			9,889			9,345			9,178
Noninterest income:
Service fees			358			362			367			350			336
Mortgage banking income			250			414			433			433			308
Investment and insurance sales commissions			326			226			230			222			121
Net loss on sale of securities			(1	)		(511	)		–			–			(495	)
Increase in cash surrender value of life insurance			163			166			165			159			157
Other noninterest income			770			620			648			742			617
Total noninterest income			1,866			1,277			1,843			1,906			1,044
Noninterest expense:
Salaries and employee benefits			5,302			4,691			4,771			5,167			5,123
Occupancy and facilities			786			691			757			733			721
Loss (gain) on foreclosed assets			–			–			1			–			–
Data processing and other office operations			1,201			1,111			1,104			1,047			1,022
Advertising and promotion			129			141			164			171			129
Amortization of intangibles			23			17			17			20			24
Other noninterest expenses			1,528			1,351			1,337			1,257			1,306
Total noninterest expense			8,969			8,002			8,151			8,395			8,325
Income before provision for income taxes			3,035			3,651			3,581			2,856			1,897
Provision for income taxes			473			524			593			410			169
Net income		$	2,562		$	3,127		$	2,988		$	2,446		$	1,728
Preferred stock dividends declared		$	122		$	122		$	122		$	122		$	122
Net income available to common shareholders		$	2,440		$	3,005		$	2,866		$	2,324		$	1,606
Basic earnings per common share		$	0.60		$	0.73		$	0.69		$	0.56		$	0.39
Diluted earnings per common share		$	0.60		$	0.73		$	0.69		$	0.56		$	0.39

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:			2025			2024			2024			2024			2024
Interest income		$	18,285		$	18,661		$	18,200		$	17,514		$	17,175
Interest expense		$	8,030		$	8,285		$	8,311		$	8,069		$	7,902
Net interest income		$	10,255		$	10,376		$	9,889		$	9,445		$	9,273
Provision for credit losses		$	117		$	–		$	–		$	100		$	95
Other noninterest income		$	1,866		$	1,277		$	1,843		$	1,906		$	1,044
Other noninterest expense		$	8,969		$	8,002		$	8,151		$	8,395		$	8,325
Net income available to common shareholders		$	2,440		$	3,005		$	2,866		$	2,324		$	1,606
Basic earnings per common share (3)		$	0.60		$	0.73		$	0.69		$	0.56		$	0.39
Diluted earnings per common share (3)		$	0.60		$	0.73		$	0.69		$	0.56		$	0.39
Dividends declared per common share (3)		$	–		$	0.32		$	–		$	0.32		$	–
Tangible net book value per common share (4)		$	26.94		$	25.98		$	26.41		$	24.55		$	24.21
Semi-annual dividend payout ratio			n/a			23.27	%		n/a			33.61	%		n/a
Average common shares outstanding			4,088,824			4,094,360			4,132,218			4,139,456			4,154,702
Balance sheet – average balances:
Loans receivable, net of allowances for credit loss		$	1,091,533		$	1,064,619		$	1,066,795		$	1,088,013		$	1,081,936
Assets		$	1,462,862		$	1,479,812		$	1,445,613		$	1,433,749		$	1,429,437
Deposits		$	1,140,397		$	1,151,450		$	1,110,854		$	1,111,240		$	1,138,010
Stockholders' equity		$	118,576		$	118,396		$	114,458		$	110,726		$	109,473
Performance ratios:
Return on average assets (1)			0.71	%		0.84	%		0.82	%		0.69	%		0.49	%
Return on average common stockholders' equity (1)			8.88	%		10.75	%		10.63	%		9.03	%		6.32	%
Return on average tangible common stockholders' equity (1)(4)			9.21	%		11.07	%		10.96	%		9.34	%		6.57	%
Net loan charge-offs to average loans (1)			0.02	%		0.02	%		0.00	%		0.00	%		0.00	%
Nonperforming loans to gross loans			1.15	%		0.95	%		0.97	%		1.15	%		1.08	%
Nonperforming assets to total assets			0.89	%		0.71	%		0.71	%		0.84	%		0.83	%
Allowance for credit losses to gross loans			1.12	%		1.13	%		1.18	%		1.16	%		1.14	%
Nonperforming assets to tangible equity plus the allowance for credit losses (4)			10.71	%		8.85	%		8.71	%		11.09	%		10.59	%
Net interest rate margin (1)(2)			3.03	%		2.96	%		2.90	%		2.84	%		2.80	%
Net interest rate spread (1)(2)			2.33	%		2.23	%		2.16	%		2.15	%		2.12	%
Service fee revenue as a percent of average demand deposits (1)			0.58	%		0.53	%		0.56	%		0.56	%		0.54	%
Noninterest income as a percent of gross revenue			9.26	%		6.40	%		9.20	%		9.81	%		5.73	%
Efficiency ratio (2)			72.88	%		67.59	%		68.43	%		72.52	%		78.93	%
Noninterest expenses to average assets (1)			2.49	%		2.15	%		2.24	%		2.35	%		2.34	%
Average stockholders' equity less accumulated other comprehensive income (loss) to average assets			9.22	%		9.08	%		9.06	%		9.03	%		8.98	%
Tangible equity to tangible assets (4)			8.05	%		7.76	%		7.85	%		7.32	%		7.60	%
Stock price information:
High		$	26.50		$	27.90		$	25.00		$	21.40		$	22.50
Low		$	25.60		$	25.00		$	20.30		$	19.75		$	20.05
Last trade value at quarter-end		$	25.70		$	26.50		$	25.00		$	20.40		$	21.25
(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 goodwill and other intangibles.

PSB Holdings, Inc.
Consolidated Statements of Comprehensive Income
		Quarter Ended
		Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(dollars in thousands - unaudited)			2025			2024			2024			2024			2024
Net income		$	2,562		$	3,127		$	2,988		$	2,446		$	1,728
Other comprehensive income, net of tax:
Unrealized gain (loss) on securities available for sale			2,551			(3,955	)		4,738			184			(615	)
Reclassification adjustment for security loss included in net income			1			404			–			–			391
Accretion of unrealized loss included in net income on securities available for sale deferred tax adjustment for Wisconsin Act 19			–			(76	)		–			–			(35	)
Amortization of unrealized loss included in net income on securities available for sale transferred to securities held to maturity			89			90			90			89			91
Unrealized gain (loss) on interest rate swap			(6	)		65			(101	)		39			122
Reclassification adjustment of interest rate swap settlements included in earnings			(13	)		(27	)		(38	)		(40	)		(41	)
Other comprehensive income (loss)			2,622			(3,499	)		4,689			272			(87	)
Comprehensive income (loss)		$	5,184		$	(372	)	$	7,677		$	2,718		$	1,641

PSB Holdings, Inc.
Nonperforming Assets as of:
		Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(dollars in thousands)			2025			2024			2024			2024			2024
Nonaccrual loans (excluding restructured loans)		$	12,404		$	10,109		$	10,116		$	12,184		$	11,498
Nonaccrual restructured loans			17			18			25			28			30
Restructured loans not on nonaccrual			280			286			292			299			304
Accruing loans past due 90 days or more			–			–			–			–			–
Total nonperforming loans			12,701			10,413			10,433			12,511			11,832
Other real estate owned			300			–			–			–			–
Total nonperforming assets		$	13,001		$	10,413		$	10,433		$	12,511		$	11,832
Nonperforming loans as a % of gross loans receivable			1.15	%		0.95	%		0.97	%		1.15	%		1.08	%
Total nonperforming assets as a % of total assets			0.89	%		0.71	%		0.71	%		0.84	%		0.83	%
Allowance for credit losses as a % of nonperforming loans			97.57	%		118.52	%		120.75	%		100.69	%		105.59	%

PSB Holdings, Inc.
Nonperforming Assets >= $500,000 net book value before specific reserves
At March 31, 2025
(dollars in thousands)
			Gross			Specific
Collateral Description		Asset Type	Principal			Reserves
Real estate – Recreational Facility		Nonaccrual		4,051			148
Real estate – Independent Auto Repair		Nonaccrual		514			0
Real estate – Dealership		Nonaccrual		2,708			560
Real estate – Rental Units		Nonaccrual		3,077			0
Total listed nonperforming assets			$	10,350		$	708
Total bank wide nonperforming assets			$	13,001		$	1,055
Listed assets as a % of total nonperforming assets				80	%		67	%

PSB Holding, Inc.
Loan Composition by Collateral Type
Quarter-ended (dollars in thousands)		Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Commercial:
Commercial and industrial		$	124,074		$	116,864		$	115,234		$	125,508		$	118,821
Agriculture			11,632			11,568			11,203			11,480			12,081
Municipal			12,878			15,733			12,596			11,190			28,842
Total Commercial			148,584			144,165			139,033			148,178			159,744
Commercial Real Estate:
Commercial real estate			562,901			551,641			541,577			544,171			546,257
Construction and development			87,080			79,377			60,952			70,540			63,375
Total Commercial Real Estate			649,981			631,018			602,529			614,711			609,632
Residential real estate:
Residential			268,490			271,643			269,954			270,944			274,300
Construction and development			26,884			28,959			34,655			36,129			34,158
HELOC			38,364			36,887			36,734			33,838			31,357
Total Residential Real Estate			333,738			337,489			341,343			340,911			339,815
Consumer installment			4,683			5,060			4,770			4,423			4,867
Subtotals – Gross loans			1,136,986			1,117,732			1,087,675			1,108,223			1,114,058
Loans in process of disbursement			(28,752	)		(27,791	)		(17,836	)		(21,484	)		(20,839	)
Subtotals – Disbursed loans			1,108,234			1,089,941			1,069,839			1,086,739			1,093,219
Net deferred loan costs			580			605			733			702			669
Allowance for credit losses			(12,392	)		(12,342	)		(12,598	)		(12,597	)		(12,494	)
Total loans receivable		$	1,096,422		$	1,078,204		$	1,057,974		$	1,074,844		$	1,081,394

PSB Holding, Inc.
Selected Commercial Real Estate Loans by Purpose
	Mar 31,				Dec 31,				Sept 30,				June 30,				Mar 31,
(dollars in thousands)	2025				2024				2024				2024				2024
	Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)
Multi Family	$	143,674	13.9	%	$	140,087	14.0	%	$	140,307	14.7	%	$	146,873	15.2	%	$	142,001	14.4	%
Industrial and Warehousing		100,494	9.7			88,297	8.8			86,818	9.1			86,025	8.9			85,409	8.6
Retail		40,779	3.9			33,991	3.4			33,020	3.5			34,846	3.6			33,177	3.4
Hotels		30,928	3.0			31,101	3.1			31,611	3.3			34,613	3.6			35,105	3.6
Office		7,254	0.7			6,234	0.6			6,378	0.7			6,518	0.7			6,655	0.7
(1) Percentage of commercial and commercial real estate portfolio and commitments.

PSB Holdings, Inc.
Deposit Composition
Insured and Collateralized Deposits	March 31,				December 31,				September 30,				June 30,				March 31,
(dollars in thousands)	2025				2024				2024				2024				2024
	$		%		$		%		$		%		$		%		$		%
Non-interest bearing demand	$	206,562	18.3	%	$	204,167	17.8	%	$	210,534	18.5	%	$	202,343	17.5	%	$	199,076	17.8	%
Interest-bearing demand and savings		314,957	27.9	%		315,900	27.6	%		305,631	26.8	%		304,392	26.5	%		318,673	28.7	%
Money market deposits		118,047	10.4	%		141,024	12.3	%		138,376	12.2	%		137,637	12.0	%		143,167	12.9	%
Retail and local time deposits <= $250		158,066	14.0	%		155,099	13.5	%		155,988	13.7	%		149,298	13.0	%		148,404	13.3	%
Total core deposits		797,632	70.6	%		816,190	71.2	%		810,529	71.2	%		793,670	69.0	%		809,320	72.7	%
Retail and local time deposits > $250		26,750	2.3	%		25,500	2.2	%		23,500	2.1	%		22,500	2.0	%		24,508	2.3	%
Broker & national time deposits <= $250		1,241	0.1	%		1,241	0.1	%		1,241	0.1	%		1,490	0.1	%		2,229	0.2	%
Broker & national time deposits > $250		79,090	7.0	%		56,164	4.9	%		56,164	4.9	%		56,328	4.9	%		61,752	5.5	%
Totals	$	904,713	80.0	%	$	899,095	78.4	%	$	891,434	78.3	%	$	873,988	76.0	%	$	897,809	80.7	%
PSB Holdings, Inc.
Deposit Composition
Uninsured Deposits	March 31,				December 31,				September 30,				June 30,				March 31,
(dollars in thousands)	2025				2024				2024				2024				2024
	$		%		$		%		$		%		$		%		$		%
Non-interest bearing demand	$	39,110	3.5	%	$	55,348	4.8	%	$	54,544	4.8	%	$	48,092	4.1	%	$	48,532	4.4	%
Interest-bearing demand and savings		17,262	1.5	%		20,934	1.8	%		18,317	1.6	%		32,674	2.8	%		20,535	1.8	%
Money market deposits		150,222	13.3	%		153,334	13.4	%		157,489	13.8	%		177,954	15.4	%		124,766	11.2	%
Retail and local time deposits <= $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%
Total core deposits		206,594	18.3	%		229,616	20.0	%		230,350	20.2	%		258,720	22.3	%		193,833	17.4	%
Retail and local time deposits > $250		18,729	1.7	%		18,638	1.6	%		17,329	1.5	%		19,613	1.7	%		21,710	1.9	%
Broker & national time deposits <= $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%
Broker & national time deposits > $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%
Totals	$	225,323	20.0	%	$	248,254	21.6	%	$	247,679	21.7	%	$	278,333	24.0	%	$	215,543	19.3	%
PSB Holdings, Inc.
Deposit Composition
Total Deposits	March 31,				December 31,				September 30,				June 30,				March 31,
(dollars in thousands)	2025				2024				2024				2024				2024
	$		%		$		%		$		%		$		%		$		%
Non-interest bearing demand	$	245,672	21.8	%	$	259,515	22.6	%	$	265,078	23.3	%	$	250,435	21.6	%	$	247,608	22.2	%
Interest-bearing demand and savings		332,219	29.4	%		336,834	29.4	%		323,948	28.4	%		337,066	29.3	%		339,208	30.5	%
Money market deposits		268,269	23.7	%		294,358	25.7	%		295,865	26.0	%		315,591	27.4	%		267,933	24.1	%
Retail and local time deposits <= $250		158,066	14.0	%		155,099	13.5	%		155,988	13.7	%		149,298	13.0	%		148,404	13.3	%
Total core deposits		1,004,226	88.9	%		1,045,806	91.2	%		1,040,879	91.4	%		1,052,390	91.3	%		1,003,153	90.1	%
Retail and local time deposits > $250		45,479	4.0	%		44,138	3.8	%		40,829	3.6	%		42,113	3.7	%		46,218	4.2	%
Broker & national time deposits <= $250		1,241	0.1	%		1,241	0.1	%		1,241	0.1	%		1,490	0.1	%		2,229	0.2	%
Broker & national time deposits > $250		79,090	7.0	%		56,164	4.9	%		56,164	4.9	%		56,328	4.9	%		61,752	5.5	%
Totals	$	1,130,036	100.0	%	$	1,147,349	100.0	%	$	1,139,113	100.0	%	$	1,152,321	100.0	%	$	1,113,352	100.0	%

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
	Quarter ended March 31, 2025								Quarter ended December 31, 2024								Quarter ended March 31, 2024
	Average					Yield /			Average					Yield /			Average					Yield /
	Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,103,895		$	15,830	5.82	%		$	1,077,242		$	15,693	5.80	%		$	1,094,321		$	15,199	5.59	%
Taxable securities		198,426			1,641	3.35	%			194,272			1,545	3.16	%			171,788			1,197	2.80	%
Tax-exempt securities (2)		79,282			654	3.35	%			79,475			661	3.31	%			80,434			666	3.33	%
FHLB stock		8,825			241	11.08	%			8,825			227	10.23	%			6,499			165	10.21	%
Other		8,960			104	4.71	%			58,405			721	4.91	%			12,885			178	5.56	%
Total (2)		1,399,388			18,470	5.35	%			1,418,219			18,847	5.29	%			1,365,927			17,405	5.12	%
Non-interest-earning assets:
Cash and due from banks		16,292								15,500								17,367
Premises and equipment, net		13,728								14,001								13,183
Cash surrender value ins		24,795								24,625								24,144
Other assets		21,021								20,090								21,201
Allowance for credit losses		(12,362	)							(12,623	)							(12,385	)
Total	$	1,462,862							$	1,479,812							$	1,429,437
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand deposits	$	339,909		$	1,567	1.87	%		$	319,777		$	1,479	1.84	%		$	350,497		$	1,672	1.92	%
Money market deposits		280,396			1,685	2.44	%			304,897			1,961	2.56	%			274,186			1,897	2.78	%
Time deposits		268,821			2,632	3.97	%			256,201			2,587	4.02	%			264,657			2,513	3.82	%
FHLB borrowings		164,968			1,792	4.41	%			170,701			1,890	4.40	%			142,926			1,450	4.08	%
Other borrowings		6,321			47	3.02	%			6,848			57	3.31	%			8,554			60	2.82	%
Senior sub. notes		4,782			59	5.00	%			4,780			59	4.91	%			4,775			59	4.97	%
Junior sub. debentures		13,036			248	7.72	%			13,011			252	7.71	%			12,934			251	7.81	%
Total		1,078,233			8,030	3.02	%			1,076,215			8,285	3.06	%			1,058,529			7,902	3.00	%
Non-interest-bearing liabilities:
Demand deposits		251,271								270,575								248,670
Other liabilities		14,782								14,626								12,765
Stockholders' equity		118,576								118,396								109,473
Total	$	1,462,862							$	1,479,812							$	1,429,437
Net interest income				$	10,440							$	10,562							$	9,503
Rate spread						2.33	%							2.23	%							2.12	%
Net yield on interest-earning assets						3.03	%							2.96	%							2.80	%
(1) Nonaccrual loans are included in the daily average loan balances outstanding.
(2) The yield on federally 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

FAQ

What were PSB Holdings (PSBQ) Q1 2025 earnings per share?

PSB Holdings reported earnings of $0.60 per share in Q1 2025, down from $0.73 in Q4 2024 but up from $0.39 in Q1 2024.

How much did PSBQ's loan portfolio grow in Q1 2025?

PSBQ's loans increased by $18.2 million or 2% in Q1 2025, reaching $1.10 billion, primarily from commercial, real estate, and development loans.

What is PSBQ's current net interest margin?

PSBQ's net interest margin improved to 3.03% in Q1 2025, up from 2.96% in Q4 2024 and 2.80% in Q1 2024.

How has PSBQ's tangible book value per share changed?

Tangible book value per share increased 11.3% year-over-year to $26.94 at March 31, 2025, from $24.21 at March 31, 2024.