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PSB Holdings, Inc. Reports Fourth Quarter 2022 Earnings of $0.80 Per Share and Record Fiscal 2022 Earnings of $3.07 Per Share

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WAUSAU, Wis., Jan. 25, 2023 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported fourth quarter earnings ending December 31, 2022 of $0.80 per share on net income of $3.5 million, compared to $0.80 per share on net income of $3.5 million during the third quarter ending September 30, 2022, and $0.71 per share on net income of $3.1 million during the fourth quarter ending December 31, 2021. Fiscal 2022 earnings increased to a record $3.07 per share from $2.88 per share for fiscal 2021.

PSB’s fourth quarter 2022 operating results reflected the following changes from the third quarter of 2022: (1) higher net interest income due to increased allocation to higher yielding loans and investments; (2) higher noninterest income primarily due to an increase in investment sales commissions; and (3) higher salary and employee benefit expenses due to inflationary pressures and funding of year-end benefit plans. Loans grew 2.7% during the quarter ending December 31, 2022, reflecting primarily growth in adjustable-rate residential mortgage loans and increased commercial and industrial loans and lines of credit.

“Our record fiscal 2022 earnings reflect the benefits of increased net interest income and improved efficiency over 2021 which included costs related to the acquisition of Sunset Bank. Improvements in already strong credit quality required no provision for loan losses which offset a significant reduction in residential mortgage banking income. Despite ongoing challenges in 2023 as the Federal Reserve combats inflation, we are well positioned to take advantage of new opportunities. During the fourth quarter, we increased our capital and liquidity positions to facilitate additional growth and manage capital,” stated Scott Cattanach, President and CEO.

December 31, 2022 Highlights:

  • Net interest income increased to $10.6 million for the quarter ended December 31, 2022, compared to $10.1 million for the quarter ended September 30, 2022, and $9.2 million for the quarter ended December 31, 2021.

  • Noninterest income increased to $1.8 million for the quarter ended December 31, 2022, from $1.7 million the previous quarter. The increase largely reflected additional investment sales commissions.

  • Noninterest expense increased $499,000 for the fourth quarter of 2022, to $7.7 million from $7.2 million the prior quarter. The increase was primarily related to higher salary and benefit costs.

  • Loans receivable increased $25 million, or 2.7%, to $962 million at December 31, 2022 from $937 million one quarter earlier. For the fiscal year ended December 31, 2022, loans increased $85.5 million, or 9.8%.

  • Asset quality improved and continued to remain strong. At December 31, 2022, non-performing assets declined $4.8 million to 0.48% of total assets from 1.06% one year earlier. No loan loss provisions were recorded during 2022 due to strong credit quality.

  • Tangible book value per common share increased to $21.37 at December 31, 2022 from $20.83 one quarter earlier. Return on tangible common equity was 15.12% for the quarter ended December 31, 2022, compared to 14.58% the prior quarter.

  • On December 19, 2022, PSB announced that it has adopted a program to repurchase up to 5% of outstanding shares of its common stock. Through the end of the fourth quarter of 2022, PSB repurchased 55,113 shares as part of this plan.

Balance Sheet and Asset Quality Review

Total assets increased slightly to $1.34 billion at December 31, 2022, from $1.32 billion at September 30, 2022. Cash and cash equivalents decreased $11.3 million to $29.4 million from $40.7 million during the quarter, while investment securities increased $3.6 million to $280.0 million at December 31, 2022, from $276.4 million one quarter earlier.

Total loans receivable increased $25.2 million to $961.9 million at December 31, 2022, from $936.7 million at September 30, 2022. New one-to-four family loans were added to the portfolio as well as commercial loans which reflected strong origination activity. Management believes loan originations could slow in coming quarters in response to lower customer demand as a result of cumulative short-term interest rate increases by the Federal Reserve to slow inflation.

The allowance for loan losses decreased slightly to 1.26% of gross loans at December 31, 2022, from 1.30% the prior quarter and 1.38% of gross loans one year earlier. Annualized net charge-offs to average loans were minimal for the quarter ended December 31, 2022 at 0.03%. Non-performing assets declined to 0.48% of total assets at December 31, 2022, compared to 0.85% at September 30, 2022, and 1.06% at December 31, 2021. At December 31, 2022, non-performing assets consisted of $5.9 million in non-accrual loans, $62,000 in non-accrual restructured loans, $270,000 in restructured loans not on non-accrual and $160,000 in foreclosed assets. During the fourth quarter, an accruing restructured loan totaling $4.6 million was upgraded to performing from impaired status.

Total deposits remained flat at $1.15 billion at December 31, 2022 and the composition of deposits changed slightly from the prior quarter. At December 31, 2022, interest-bearing demand and savings deposits increased to 34.5% of total deposits from 32.9% of total deposits the prior quarter, while noninterest-bearing demand deposits decreased to 25.4% from 26.0% at September 30, 2022. Money market deposits decreased to 18.8% of total deposits at December 31, 2022 from 19.9%, and retail and local time deposits increased to 13.5% from 13.4% at September 30, 2022. Broker and national time deposits remained at 7.8% of total deposits at December 31, 2022.

FHLB advances increased to $43.0 million at December 31, 2022, compared to $40.0 million at September 30, 2022, while other borrowings increased to $13.0 million at December 31, 2022 compared to $10.4 million at September 30, 2022.

Senior subordinated notes increased to $5.5 million at December 31, 2022 from $2.5 million at September 30, 2022. The increased senior subordinated notes reflect the issuance of new subordinated debt of $4.8 million on November 1, 2022, which included $1.8 million of refinanced existing notes.

Tangible stockholder equity as a percent of total tangible assets increased to 7.42% at December 31, 2022, from 6.98% at September 30, 2022. On November 1, 2022, PSB sold $7.2 million of non-cumulative 6.75% preferred stock. PSB has the option to redeem the preferred stock in whole or in part beginning November 1, 2027.

Tangible book value per common share was $21.37 at December 31, 2022, compared to $20.83 per common share one quarter earlier. Relative to the prior quarter, accumulated other comprehensive loss was unchanged with the unrealized loss on securities available for sale remaining at $24.2 million. At December 31, 2022, fair values on all securities were 12.3% less than amortized purchase cost.

Operations Review

Net interest income increased to $10.6 million (on a net margin of 3.41%) for the fourth quarter of 2022, compared to $10.1 million (on a net margin of 3.24%) for the third quarter of 2022, and $9.2 million (on a net margin of 3.01%) for the fourth quarter of 2021. Earning asset yields increased 40 basis points to 4.21% during the fourth quarter of 2022, from 3.81% during the third quarter of 2022, while deposit and borrowing costs increased 34 basis points to 1.11% compared to 0.77% during the third quarter of 2022.

The increase in earning asset yields was partially due to higher yields on investment securities during the quarter ended December 31, 2022. Taxable security yields increased to 2.45% for the quarter ended December 31, 2022, from 1.94% in the quarter ended September 30, 2022. Loan yields also increased during the fourth quarter to 4.67% from 4.30% for the third quarter of 2022 as loans repriced to higher indices from Federal Reserve and market rate increases and new loans were added to the portfolio. Along with a further increase in asset yields, funding costs are expected to increase during the Federal Reserve’s increasing interest rate posture and as existing loans, securities, and deposits reprice to higher levels.

Total noninterest income increased for the fourth quarter of 2022 to $1.8 million from $1.7 million for the third quarter of 2022, due primarily to an increase in investment sales commissions. Mortgage loan servicing income also increased slightly during the fourth quarter, though the increase was mostly offset by a reduction in gains on the sale of mortgage loans. At December 31, 2022, the Bank serviced $382.4 million in secondary market residential mortgage loans for others.

Noninterest expense increased to $7.7 million for the fourth quarter of 2022, compared to $7.2 million for the third quarter of 2022. The fourth quarter of 2022 included higher salaries and employee benefit expenses. Salary and employee benefit expenses were $4.7 million for the fourth quarter of 2022, compared to $4.3 million for the third quarter of 2022.

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 ten full-service banking locations in Marathon, Oneida, Vilas, Milwaukee and Waukesha counties and a loan production office in 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

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 relating to the COVID-19 pandemic and its effect on PSB and Peoples, and their customers, and other risks. 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     
December 31, September 30, June 30, and March 31, 2022, unaudited, December 31, 2021 derived from audited financial statements
      
 Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,
(dollars in thousands, except per share data) 2022  2022  2022  2022  2021 
      
Assets     
      
Cash and due from banks$28,561 $16,659 $19,149 $18,322 $16,896 
Interest-bearing deposits 758  3,267  3,545  5,158  6,579 
Federal funds sold 90  20,751  16,689  14,356  30,068 
      
Cash and cash equivalents 29,409  40,677  39,383  37,836  53,543 
Securities available for sale (at fair value) 192,197  188,425  190,478  289,704  308,744 
Securities held to maturity (fair values of $80,926, $77,467, $82,567, $0 and    
$0 respectively) 87,816  87,993  88,216  -  - 
Equity securities 2,032  1,870  1,781  1,720  1,701 
Bank certificates of deposit (at cost) -  -  245  245  245 
Loans held for sale -  -  270  -  3,061 
Loans receivable, net 961,865  936,686  925,260  875,588  876,337 
Accrued interest receivable 4,006  3,493  3,285  3,219  3,256 
Foreclosed assets 160  160  160  1,103  1,103 
Premises and equipment, net 13,164  13,129  12,981  12,906  12,695 
Mortgage servicing rights, net 1,610  1,651  1,711  1,770  1,714 
Federal Home Loan Bank stock (at cost) 2,516  2,516  2,646  2,646  2,646 
Cash surrender value of bank-owned life insurance 24,922  24,765  24,608  24,455  24,305 
Core deposit intangible 382  415  449  487  534 
Goodwill 2,541  2,541  2,541  2,541  2,541 
Other assets 15,069  15,248  13,550  11,725  6,286 
      
TOTAL ASSETS$1,337,689 $1,319,569 $1,307,564 $1,265,945 $1,298,711 
      
Liabilities     
      
Non-interest-bearing deposits$292,338 $298,335 $283,592 $272,611 $284,477 
Interest-bearing deposits 856,417  850,483  829,867  816,794  820,763 
      
Total deposits 1,148,755  1,148,818  1,113,459  1,089,405  1,105,240 
      
Federal Home Loan Bank advances 43,000  40,000  67,000  47,000  47,000 
Other borrowings 12,985  10,449  4,601  4,304  6,677 
Senior subordinated notes 5,549  2,500  2,500  2,500  2,500 
Junior subordinated debentures 12,819  12,793  12,768  12,742  12,717 
Accrued expenses and other liabilities 12,639  10,114  10,938  10,208  13,315 
      
Total liabilities 1,235,747  1,224,674  1,211,266  1,166,159  1,187,449 
      
Stockholders' equity     
      
Preferred stock - no par value:     
Authorized - 30,000 shares     
Outstanding - 7,200, 0, 0, 0, and 0 shares, respectively 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 - 4,297,279, 4,414,651, 4,423,037, 4,434,840 and     
4,440,329 shares, respectively 1,830  1,830  1,830  1,830  1,830 
Additional paid-in capital 8,300  8,294  8,238  8,183  8,059 
Retained earnings 126,003  123,559  120,043  117,957  114,627 
Accumulated other comprehensive income (loss), net of tax (24,220) (24,200) (19,423) (14,097) 628 
Treasury stock, at cost - 1,193,519, 1,076,147, 1,067,761, 1,055,958 and    
1,050,469 shares, respectively (17,171) (14,588) (14,390) (14,087) (13,882)
      
Total stockholders' equity 101,942  94,895  96,298  99,786  111,262 
      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$1,337,689 $1,319,569 $1,307,564 $1,265,945 $1,298,711 


PSB Holdings, Inc.     
Consolidated Statements of Income     
    Quarter Ended
(dollars in thousands,Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,
except per share data - unaudited)20222022202220222021
         
Interest and dividend income:     
Loans, including fees$11,251$10,225$9,295$9,054 $8,918 
Securities:     
Taxable 1,218 978 859 762  631 
Tax-exempt 539 540 537 533  505 
Other interest and dividends 141 163 52 42  31 
         
Total interest and dividend income 13,149 11,906 10,743 10,391  10,085 
         
Interest expense:     
Deposits 2,060 1,341 595 443  476 
FHLB advances 167 209 234 169  192 
Other borrowings 38 14 4 2  4 
Senior subordinated notes 55 28 28 28  29 
Junior subordinated debentures 224 202 179 166  165 
         
Total interest expense 2,544 1,794 1,040 808  866 
         
Net interest income 10,605 10,112 9,703 9,583  9,219 
Provision for loan losses - - - -  - 
         
Net interest income after provision for loan losses    10,605 10,112 9,703 9,583  9,219 
         
Noninterest income:     
Service fees 381 409 392 388  382 
Gain on sale of mortgage loans 56 98 182 277  451 
Mortgage loan servicing, net 179 130 117 176  114 
Investment and insurance sales commissions 498 357 404 456  500 
Net gain on sale of securities - - - -  - 
Increase in cash surrender value of life insurance    157 157 152 150  151 
Other noninterest income 553 558 686 531  646 
         
Total noninterest income 1,824 1,709 1,933 1,978  2,244 
         
Noninterest expense:     
Salaries and employee benefits 4,700 4,302 4,548 4,390  4,669 
Occupancy and facilities 641 687 629 665  596 
Loss (gain) on foreclosed assets 2 4 - (6) (347)
Data processing and other office operations 910 906 912 861  855 
Advertising and promotion 180 185 173 152  155 
Core deposit intangible amortization 34 34 38 47  47 
Other noninterest expenses 1,219 1,069 1,151 1,083  1,382 
         
Total noninterest expense 7,686 7,187 7,451 7,192  7,357 
         
Income before provision for income taxes 4,743 4,634 4,185 4,369  4,106 
Provision for income taxes 1,143 1,119 993 1,039  960 
         
Net income$3,600$3,515$3,192$3,330 $3,146 
Preferred stock dividends declared$81$-$-$- $- 
         
Net income available to common shareholders$3,519$3,515$3,192$3,330 $3,146 
Basic earnings per common share$0.80$0.80$0.72$0.75 $0.71 
Diluted earnings per common share$0.80$0.80$0.72$0.75 $0.71 


PSB Holdings, Inc.     
Consolidated Statements of Income     
    Three Months Ended Year Ended
(dollars in thousands,December December
except per share data - unaudited) 2022 2021   2022 2021 
         
Interest and dividend income:     
Loans, including fees$11,251$8,918  $39,825$37,655 
Securities:     
Taxable 1,218 631   3,817 2,272 
Tax-exempt 539 505   2,149 2,012 
Other interest and dividends 141 31   398 147 
         
Total interest and dividend income 13,149 10,085   46,189 42,086 
         
Interest expense:     
Deposits 2,060 476   4,439 1,912 
FHLB advances 167 192   779 848 
Other borrowings 38 4   58 28 
Senior subordinated notes 55 29   139 113 
Junior subordinated debentures 224 165   771 584 
         
Total interest expense 2,544 866   6,186 3,485 
         
Net interest income 10,605 9,219   40,003 38,601 
Provision for loan losses - -   - 1,000 
         
Net interest income after provision for loan losses    10,605 9,219   40,003 37,601 
         
Noninterest income:     
Service fees 381 382   1,570 1,440 
Gain on sale of mortgage loans 56 451   613 2,760 
Mortgage loan servicing, net 179 114   602 313 
Investment and insurance sales commissions 498 500   1,715 1,986 
Net gain on sale of securities - -   - 134 
Increase in cash surrender value of life insurance    157 151   616 560 
Other noninterest income 553 646   2,328 2,225 
         
Total noninterest income 1,824 2,244   7,444 9,418 
         
Noninterest expense:     
Salaries and employee benefits 4,700 4,669   17,940 16,143 
Occupancy and facilities 641 596   2,622 2,426 
Loss (gain) on foreclosed assets 2 (347)  - (166)
Data processing and other office operations 910 855   3,589 3,876 
Advertising and promotion 180 155   690 755 
Core deposit intangible amortization 34 116   153 128 
Other noninterest expenses 1,219 1,313   4,522 6,948 
         
Total noninterest expense 7,686 7,357   29,516 30,110 
         
Income before provision for income taxes 4,743 4,106   17,931 16,909 
Provision for income taxes 1,143 960   4,294 4,092 
         
Net income$3,600$3,146  $13,637$12,817 
Preferred stock dividends declared$81$-  $81$- 
         
Net income available to common shareholders$3,519$3,146  $13,556$12,817 
Basic earnings per common share$0.80$0.71  $3.07$2.88 
Diluted earnings per common share$0.80$0.71  $3.07$2.88 


PSB Holdings, Inc.       
Quarterly Financial Summary     
(dollars in thousands, except per share data)  Quarter ended
    Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,
Earnings and dividends:  2022  2022  2022  2022  2021 
         
 Interest income  $13,149 $11,906 $10,743 $10,391 $10,085 
 Interest expense  $2,544 $1,794 $1,040 $808 $866 
 Net interest income  $10,605 $10,112 $9,703 $9,583 $9,219 
 Provision for loan losses $- $- $- $- $- 
 Other noninterest income $1,824 $1,709 $1,933 $1,978 $2,244 
 Other noninterest expense $7,686 $7,187 $7,451 $7,192 $7,357 
 Net income available to common shareholders  $3,519 $3,515 $3,192 $3,330 $3,146 
         
 Basic earnings per common share (3)$0.80 $0.80 $0.72 $0.75 $0.71 
 Diluted earnings per common share (3)$0.80 $0.80 $0.72 $0.75 $0.71 
 Dividends declared per common share (3)$0.25 $- $0.25 $- $0.23 
 Tangible net book value per common share (4)  $21.37 $20.83 $21.10 $21.82 $24.36 
         
 Semi-annual dividend payout ratio 15.27%n/a  16.96%n/a  15.05%
 Average common shares outstanding 4,377,330  4,419,421  4,428,939  4,433,375  4,445,465 
         
Balance sheet - average balances:     
 Loans receivable, net of allowances for loss  $945,551 $931,344 $904,710 $878,979 $870,151 
 Assets  $1,321,776 $1,323,400 $1,290,906 $1,278,565 $1,295,780 
 Deposits  $1,146,066 $1,141,784 $1,099,314 $1,084,814 $1,092,872 
 Stockholders' equity  $100,037 $98,630 $98,261 $108,803 $112,089 
         
Performance ratios:       
 Return on average assets (1)  1.06% 1.05% 0.99% 1.06% 0.96%
 Return on average stockholders' equity (1)   13.96% 14.14% 13.03% 12.41% 11.14%
 Return on average tangible common     
 stockholders' equity (1)(4)  15.12% 14.58% 13.29% 12.49% 11.45%
 Net loan charge-offs to average loans (1) 0.03% 0.01% -0.02% -0.05% -0.10%
 Nonperforming loans to gross loans 0.64% 1.16% 1.21% 1.34% 1.42%
 Nonperforming assets to total assets 0.48% 0.85% 0.88% 1.03% 1.06%
 Allowance for loan losses to gross loans 1.26% 1.30% 1.32% 1.39% 1.38%
 Nonperforming assets to tangible equity     
 plus the allowance for loan losses (4) 6.22% 10.89% 11.04% 12.10% 11.58%
 Net interest rate margin (1)(2) 3.41% 3.24% 3.23% 3.24% 3.01%
 Net interest rate spread (1)(2) 3.10% 3.04% 3.11% 3.14% 2.89%
 Service fee revenue as a percent of     
 average demand deposits (1) 0.50% 0.56% 0.57% 0.58% 0.52%
 Noninterest income as a percent     
 of gross revenue   12.18% 12.55% 15.25% 15.99% 18.20%
 Efficiency ratio (2)   61.06% 60.02% 63.20% 61.40% 63.37%
 Noninterest expenses to average assets (1)   2.31% 2.15% 2.32% 2.28% 2.25%
 Tangible equity to tangible assets (4) 7.42% 6.98% 7.15% 7.66% 8.35%
         
Stock price information:      
         
 High  $22.74 $23.94 $26.35 $26.45 $27.00 
 Low  $21.50 $22.50 $22.82 $25.80 $24.60 
 Last trade value at quarter-end$21.90 $22.50 $23.50 $26.00 $26.05 
         
(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 Comprehensive Income    
         
    Quarter Ended
    Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,
(dollars in thousands - unaudited) 2022  2022  2022  2022  2021 
         
Net income$3,600 $3,515 $3,192 $3,330 $3,146 
         
Other comprehensive income, net of tax:     
         
 Unrealized loss on securities available     
  for sale (116) (4,915) (5,573) (14,847) (973)
         
 Reclassification adjustment for security     
  gain included in net income -  -  -  -  - 
         
 Amortization of unrealized loss included in net    
  income on securities available for sale     
  transferred to securities held to maturity 93  92  176  -  - 
         
 Unrealized gain on interest rate swap 12  32  43  85  31 
         
 Reclassification adjustment of interest rate     
  swap settlements included in earnings (8) 13  28  37  40 
         
         
Other comprehensive loss (19) (4,778) (5,326) (14,725) (902)
         
Comprehensive income (loss)$3,581 $(1,263)$(2,134)$(11,395)$2,244 


PSB Holdings, Inc.     
Nonperforming Assets as of:     
 Dec 31,Sep 30,Jun 30,Mar 31,Dec 31,
(dollars in thousands) 2022  2022  2022  2022  2021 
      
Nonaccrual loans (excluding restructured loans)$5,879 $6,048 $6,036 $6,537 $6,425 
Nonaccrual restructured loans 62  70  146  170  1,000 
Restructured loans not on nonaccrual 270  4,904  5,137  5,172  5,213 
Accruing loans past due 90 days or more -  -  -  -  - 
      
Total nonperforming loans 6,211  11,022  11,319  11,879  12,638 
Other real estate owned 160  160  160  1,103  1,103 
      
Total nonperforming assets$6,371 $11,182 $11,479 $12,982 $13,741 
      
Nonperforming loans as a % of gross loans receivable 0.64% 1.16% 1.21% 1.34% 1.42%
Total nonperforming assets as a % of total assets 0.48% 0.85% 0.88% 1.03% 1.06%
Allowance for loan losses as a % of nonperforming loans 197.92% 112.28% 109.48% 103.89% 96.71%


PSB Holdings, Inc.   
Nonperforming Assets >= $500,000 net book value before specific reserves  
At December 31, 2022   
(dollars in thousands)   
  GrossSpecific
Collateral DescriptionAsset TypePrincipalReserves
    
Real estate - Buffet Style RestaurantNonaccrual$2,938 $1,197 
Real estate - Independent Auto RepairNonaccrual 798  87 
    
Total listed nonperforming assets $3,736 $1,284 
Total bank wide nonperforming assets $6,371 $1,650 
Listed assets as a % of total nonperforming assets  59% 78%


PSB Holding, Inc.      
Loan Composition by Purpose      
Quarter-ended (dollars in thousands)Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
 
       
Residential real estate:      
       
One to four family$182,688 $172,913 $169,437 $168,083 $168,584  
HELOC loans 17,625  18,423  17,776  16,709  17,198  
Residential construction & development 20,698  22,313  22,462  21,590  23,093  
Residential vacant land 1,414  3,069  1,599  1,697  1,763  
       
Total Residential real estate 222,425  216,718  211,274  208,079  210,638  
       
Commercial/Agricultural real estate:      
       
Owner occupied      
Commercial real estate 220,375  211,008  205,976  208,271  202,416  
SBA commercial real estate 2,514  2,616  2,458  2,530  1,568  
Agriculture real estate 3,835  3,902  3,583  3,651  3,716  
Construction and land development 22,330  32,158  31,465  26,111  22,380  
Commercial vacant land 7,291  5,214  5,351  5,194  3,529  
       
Total Owner occupied 256,345  254,898  248,833  245,757  233,609  
       
Non-owner occupied      
Commercial real estate 228,761  225,823  227,400  212,407  211,688  
One to four family residential rental 64,764  66,224  61,749  56,305  52,437  
SBA commercial real estate -  -  -  -  1,010  
Construction and land development 27,253  25,543  25,086  23,080  25,899  
Commercial vacant land 3,862  4,010  4,287  4,191  4,534  
       
Total Non-owner occupied 324,640  321,600  318,522  295,983  295,568  
       
Commercial/Agricultural non-real estate:      
       
Municipal non-real estate 9,915  7,133  6,352  6,403  11,858  
Commercial line 63,173  56,154  65,728  54,626  52,151  
Other commercial non-real estate 87,535  82,430  76,065  64,260  61,115  
SBA commercial non-real estate 3,533  3,378  3,926  6,068  17,527  
Agricultural non-real estate 1,290  1,491  1,409  1,340  1,130  
       
Total Commercial/Agr. non-real estate 165,446  150,586  153,480  132,697  143,781  
       
Consumer non-real estate:      
       
Consumer installment 4,072  4,005  4,305  4,201  4,054  
Consumer line 382  494  493  486  480  
Other consumer 115  116  123  118  117  
       
Total Consumer non-real estate 4,569  4,615  4,921  4,805  4,651  
       
Gross loans 973,425  948,417  937,030  887,321  888,247  
Net deferred loan costs (fees) 573  537  503  423  107  
Overdrafts 160  107  119  185  205  
Allowance for loan losses (12,293) (12,375) (12,392) (12,341) (12,222) 
       
Total loans receivable$961,865 $936,686 $925,260 $875,588 $876,337  


PSB Holdings, Inc.               
Deposit Composition               
 December 31,September 30,  June 30,March 31,December 31,
(dollars in thousands)2022 2022 2022 2022 2021 
 $% $% $% $% $% 
                
Non-interest bearing demand$292,33825.4% $298,33526.0% $283,59225.5% $272,61125.0% $284,47725.7% 
Interest-bearing demand and savings 395,77134.5%  377,83132.9%  376,15033.8%  382,82935.1%  413,52237.4% 
Money market deposits 216,07318.8%  228,61919.9%  226,90720.4%  221,98220.4%  219,14519.8% 
Retail and local time deposits <= $250 130,20511.3%  132,09511.4%  136,23012.1%  138,82112.8%  140,44312.8% 
                
Total core deposits 1,034,38790.0%  1,036,88090.2%  1,022,87991.8%  1,016,24393.3%  1,057,58795.7% 
Retail and local time deposits > $250 25,4782.2%  22,7992.0%  26,8822.4%  28,7542.6%  28,6592.6% 
Broker & national time deposits <= $250 6,4510.6%  6,7000.6%  7,4430.7%  7,4430.7%  7,7930.7% 
Broker & national time deposits > $250 82,4397.2%  82,4397.2%  56,2555.1%  36,9653.4%  11,2011.0% 
                
Totals$1,148,755100.0% $1,148,818100.0% $1,113,459100.0% $1,089,405100.0% $1,105,240100.0% 


PSB Holdings, Inc.           
Average Balances ($000) and Interest Rates         
(dollars in thousands)           
              
              
   Quarter ended December 31, 2022 Quarter ended September 30, 2022 Quarter ended December 31, 2021
   Average Yield / Average Yield / Average Yield /
   BalanceInterestRate BalanceInterestRate BalanceInterestRate
Assets            
Interest-earning assets:           
Loans (1)(2)$957,926 $11,2664.67% $943,724 $10,2354.30% $882,157 $8,9304.02%
Taxable securities 197,070  1,2182.45%  199,727  9781.94%  214,626  6311.17%
Tax-exempt securities (2)   82,074  6823.30%  82,242  6843.30%  83,518  6393.04%
FHLB stock 2,516  325.05%  2,579  324.92%  2,646  182.70%
Other  14,131  1093.06%  28,823  1311.80%  53,098  130.10%
              
Total (2)  1,253,717  13,3074.21%  1,257,095  12,0603.81%  1,236,045  10,2313.28%
              
Non-interest-earning assets:          
Cash and due from banks   18,941     19,400     19,967   
Premises and equipment,          
net  13,123     13,052     12,699   
Cash surrender value ins   24,822     24,666     24,216   
Other assets 23,548     21,567     14,859   
Allowance for loan           
losses  (12,375)    (12,380)    (12,006)  
              
Total $1,321,776  $1,323,400  $1,295,780 
              
Liabilities & stockholders' equity          
Interest-bearing liabilities:          
Savings and demand           
deposits$376,075 $6900.73% $375,617 $3700.39% $388,549 $760.08%
Money market deposits   224,701  6011.06%  232,713  3990.68%  222,399  930.17%
Time deposits 241,290  7691.26%  245,353  5720.92%  188,301  3070.65%
FHLB borrowings 35,522  1671.87%  49,924  2091.66%  52,705  1921.45%
Other borrowings 11,307  381.33%  6,919  140.80%  11,585  40.14%
Senior sub. notes 4,522  554.83%  2,500  284.44%  2,500  294.60%
Junior sub. debentures 12,806  2246.94%  12,781  2026.27%  12,704  1655.15%
              
Total  906,223  2,5441.11%  925,807  1,7940.77%  878,743  8660.39%
              
Non-interest-bearing liabilities:          
Demand deposits 304,000     288,101     293,623   
Other liabilities 11,516     10,862     11,325   
Stockholders' equity 100,037     98,630     112,089   
              
Total $1,321,776  $1,323,400  $1,295,780 
              
Net interest income $10,763   $10,266   $9,365 
Rate spread  3.10%   3.04%   2.89%
Net yield on interest-earning assets 3.41%   3.24%   3.01%
              
(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)       
   Year ended December 31, 2022 Year ended December 31, 2021
   Average Yield/ Average Yield/
   BalanceInterestRate BalanceInterestRate
Assets        
Interest-earning assets:       
Loans (1)(2)$927,720 $39,8714.30% $875,571 $37,7024.31%
Taxable securities 204,630  3,8171.87%  176,816  2,2721.28%
Tax-exempt securities (2)   82,977  2,7203.28%  84,141  2,5473.03%
FHLB stock 2,597  1144.39%  2,551  893.49%
Other  20,848  2841.36%  48,616  580.12%
          
Total (2)  1,238,772  46,8063.78%  1,187,695  42,6683.59%
          
Non-interest-earning assets:      
Cash and due from banks   18,772     20,003   
Premises and equipment,       
net  12,988     12,625   
Cash surrender value ins 24,591     22,527   
Other assets 20,896     14,184   
Allowance for loan       
losses  (12,347)    (11,767)  
          
Total $1,303,672  $1,245,267 
          
Liabilities & stockholders' equity      
Interest-bearing liabilities:       
Savings and demand       
deposits $381,849 $1,2510.33% $364,602 $2790.08%
Money market deposits 223,409  1,2100.54%  216,888  3970.18%
Time deposits 227,570  1,9780.87%  174,001  1,2360.71%
FHLB borrowings 49,784  7791.56%  63,180  8481.34%
Other borrowings 7,439  580.78%  20,259  280.14%
Senior sub. notes 3,010  1394.62%  2,500  1134.52%
Junior sub. debentures 12,768  7716.04%  10,708  5845.45%
          
Total  905,829  6,1860.68%  852,138  3,4850.41%
          
Non-interest-bearing liabilities:      
Demand deposits 285,261     271,866   
Other liabilities 11,330     11,032   
Stockholders' equity 101,252     110,231   
          
Total $1,303,672  $1,245,267 
          
Net interest income $40,620   $39,183 
Rate spread   3.10%   3.18%
Net yield on interest-earning assets 3.28%   3.30%
          
(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


PSB Holdings Inc (WI)

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About PSBQ

psb holdings limited is an insurance company located in station rd, cambridge, united kingdom.