PSB Holdings, Inc. Reports Fourth Quarter 2023 Earnings of $0.55 Per Share; Capital Up 6.2% From Prior Quarter
PSB Holdings, Inc. reported fourth-quarter earnings of $0.55 per share on net income of $2.3 million, compared to $0.29 per share on net income of $1.2 million in the third quarter, and $0.80 per share on net income of $3.5 million in the fourth quarter of 2022. The company's net interest income remained unchanged at $9.6 million, and the effective tax rate declined to 26.7%. Tangible book value per common share increased 7.1% to $23.84, and the return on tangible common equity was 9.64%. Loans decreased $19.5 million, and non-interest income was $1.1 million compared to $1.7 million in the prior quarter. Total assets decreased slightly to $1.42 billion, and total deposits decreased $30.4 million to $1.14 billion. The company's tangible stockholder equity as a percent of total tangible assets was 7.49% at December 31, 2023.
01/24/2024 - 08:30 AM
WAUSAU, Wis., Jan. 24, 2024 (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, 2023 of $0.55 per common share on net income of $2.3 million , compared to $0.29 per common share on net income of $1.2 million during the third quarter ending September 30, 2023, and $0.80 per common share on net income of $3.5 million during the fourth quarter ending December 31, 2022.
PSB’s fourth quarter 2023 operating results reflected the following changes from the third quarter of 2023: (1) lower tax expense related to a change in Wisconsin tax law passed in July 2023 that eliminated state taxes on certain qualified assets; (2) lower non-interest income due to losses on the sale of investment securities; (3) lower non-interest expense related to lower salary and benefit expenses; (4) lower accumulated other comprehensive income (loss) (“AOCI”) due to a decrease in intermediate interest rates; (5) stronger capital ratios supported by additional earnings, AOCI improvements and lower total assets; and (6) an increase in insured and collateralized core deposits.
“We are seeing the decline in our net interest margin stabilize, non-performing assets remain low and overhead expenses contained at an acceptable level. With the challenging economic and interest rate environment experienced in 2023, we delivered a return of 9.62% on common tangible shareholder equity. Though different challenges may arise during 2024, we are proud of the commitment our team has to deliver strong returns to shareholders. Our organization is filled with strong personnel dedicated to making good decisions and building the best bank for the communities we serve,” stated Scott Cattanach, President and CEO. “We bring conservative growth expectations into 2024, but if industry credit conditions remain good and we return net interest margin to historical levels in excess of 3.00% , we expect our earnings in 2024 to exceed 2023 levels.”
December 31, 2023, Highlights:
Net interest income was unchanged at $9.6 million for the quarter ended December 31, 2023 as increases in funding costs were offset by increases in asset yields. The effective tax rate declined to 26.7% for the quarter ended December 31, 2023 compared to 63.8% the prior quarter and 24.1% one year earlier. The current quarter includes additional impacts from continued adoption of the 2023 changes in Wisconsin tax law. The prior quarter reflected recognition of an allowance against Wisconsin deferred tax assets, including those assets related to accumulated other comprehensive income. During calendar 2023, adoption of the Wisconsin tax change increased tax expense by $1.9 million . Tangible book value per common share increased 7.1% to $23.84 at December 31, 2023 compared to $22.25 one quarter earlier. During the fourth quarter ended December 31, 2023, tangible book value was positively influenced by net income, intangible asset amortization and lower accumulated other comprehensive loss. Return on tangible common equity was 9.64% for the quarter ended December 31, 2023 compared to 5.17% the prior quarter and 15.23% one year earlier. Loans decreased $19.5 million in the fourth quarter ended December 31, 2023, to $1.1 billion . Allowance for credit losses increased to 1.13% of gross loans. Noninterest income was $1.1 million for the quarter ended December 31, 2023 compared to $1.7 million the prior quarter. The current quarter reflected lower mortgage banking income and a $297,000 loss on the sale of investment securities. Noninterest expenses decreased $96,000 in the fourth quarter of 2023, to $7.4 million from $7.5 million the prior quarter. The decrease was primarily related to lower salaries and benefit expenses. Balance Sheet and Asset Quality Review
Total assets decreased slightly to $1.42 billion at December 31, 2023, from $1.44 billion at September 30, 2023. Cash and cash equivalents increased $6.51 million , to $27.8 million at December 31, 2023 compared to $21.3 million the previous quarter. The higher cash and cash equivalent level primarily reflects proceeds from loan payoffs. Investment securities available for sale increased slightly to $164.0 million at December 31, 2023 from $160.9 million one quarter earlier. During the fourth quarter, $4.0 million available for sale securities were sold with the proceeds reinvested into higher yielding investments. Total collateralized liquidity available to meet cash demands was approximately $363 million at December 31, 2023 with an additional $310 million that could be raised in a short timeframe from the brokered CDs market.
Despite 2023 full year loan growth of 12.1% , total loans receivable decreased $19.5 million to $1.08 billion at December 31, 2023, from $1.10 billion at September 30, 2023. Commercial real estate loans decreased $8.0 million to $617.9 million at December 31, 2023 from $625.9 million the prior quarter. Commercial non-real estate loans decreased $16.9 million to $161.0 million at December 31, 2023 from $177.9 million one quarter earlier. Residential real estate loans increased $1.36 million from the prior quarter to $338.2 million from $336.8 million . The loan portfolio remains well diversified with commercial real estate loans totaling 55.1% of gross loans followed by residential real estate loans at 30.2% of gross loans, commercial non-real estate loans at 14.4% and consumer loans at 0.3% .
The allowance for credit losses increased slightly to 1.13% of gross loans at December 31, 2023 from 1.10% the prior quarter. Annualized net charge-offs to average loans were zero for the fourth and third quarters ended December 31, 2023 and September 30, 2023 compared to net charge-offs of 0.03% one year earlier. Non-performing assets remained at 0.42% of total assets at December 31, 2023. For the fourth consecutive quarter, the Bank did not own any foreclosed real estate.
Total deposits decreased $30.4 million to $1.14 billion at December 31, 2023 from $1.17 billion at September 30, 2023. The decline in deposits reflects pay down of $18.3 million in maturing brokered deposits and national CDs and a $22.5 million decline in uninsured deposits. Insured core and time deposits increased $10.4 million during the fourth quarter.
The composition of deposits continued to change during the fourth quarter of 2023 as customers continue to seek higher deposit rates. At December 31, 2023, money market deposits and retail time deposits increased to 40.6% of deposits, compared to 39.2% at September 30, 2023. Uninsured and uncollateralized deposits represented 20.9% of total deposits at December 31, 2023 compared to 22.2% at September 30, 2023.
FHLB advances increased to $134.0 million at December 31, 2023 compared to $128.0 million at September 30, 2023. FHLB advances were used to fund repayment of certain brokered deposit maturities. Other borrowings increased by $2.4 million to $8.1 million at December 31, 2023.
Tangible stockholder equity as a percent of total tangible assets was 7.49% at December 31, 2023, compared to 6.98% at September 30, 2023 and 7.42% at December 31, 2022.
Tangible net book value per common share increased $2.47 , or 11.6% to $23.84 at December 31, 2023, compared to $21.37 one year earlier. Relative to the prior quarter, tangible net book value per common share increased $1.59 , or 7.1% due to continued earnings and a decrease in accumulated other comprehensive loss of $5.5 million . Lower interest rates and new security purchases increased the market value on the available for sale securities portfolio during the fourth quarter.
Operations Review
Net interest income remained at $9.6 million (on a net margin of 2.88% ) for the fourth quarter of 2023, equal to $9.6 million (on a net margin of 2.88% ) for the third quarter of 2023, and $10.6 million (on a net margin of 3.41% ) for the fourth quarter of 2022. Earning asset yields increased 21 basis points to 4.99% during the fourth quarter of 2023 from 4.78% during the third quarter of 2023, while deposit and borrowing costs increased 28 basis points to 2.79% compared to 2.51% during the third quarter of 2023.
The increase in earning asset yields was primarily due to higher yields on loan originations and renewals during the quarter. Taxable security yields were 2.72% for the quarter ended December 31, 2023, compared to 2.55% for the quarter ended September 30, 2023, up 17 basis points. Loan yields increased during the fourth quarter to 5.43% from 5.23% for the third quarter of 2023, up 20 basis points as loans repriced to higher market rates and increased credit spreads.
Rising deposit costs for savings and demand deposits, money market deposits, time deposits and FHLB advances were responsible for the rise in the Bank’s cost of funds. The overall cost of deposits was 1.91% for the quarter ended December 31, 2023 compared to 1.66% the prior quarter, up 25 basis points. FHLB advance costs rose to 4.01% during the fourth quarter ended December 31, 2023 from 3.90% the prior quarter.
Total noninterest income decreased for the fourth quarter of 2023 to $1.10 million , from $1.68 million for the third quarter of 2023, due primarily to a loss on the sale of investment securities during the fourth quarter of $297,000. Additionally, mortgage banking income declined by $98,000 , or 28% . At December 31, 2023, the Bank serviced $366.6 million in secondary market residential mortgage loans for others which provides fee income. Total mortgage banking income was $247,000 for the quarter ended December 31, 2023 compared to $345,000 for the quarter ended September 30, 2023.
Noninterest expenses decreased to $7.4 million for the fourth quarter of 2023, compared to $7.5 million for the third quarter of 2023. The fourth quarter of 2023 included lower salary and benefit expenses relative to the prior quarter.
Taxes decreased $1.5 million during the fourth quarter to $878,000 from $2.38 million one quarter earlier. The decrease reflects a prior quarter charge of $2.8 million related to a Wisconsin state tax change signed by the Governor in July 2023, effective January 1, 2023. Due to the tax change, the Company does not expect to incur Wisconsin state income tax during 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 eleven full-service banking locations in Marathon, Oneida, Vilas, Portage, Milwaukee and Waukesha counties. 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.
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PSB Holdings, Inc. Consolidated Balance Sheets December 31, September 30, June 30, and March 31, 2023, unaudited, December 31, 2022 derived from audited financial statements Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, (dollars in thousands, except per share data) 2023 2023 2023 2023 2022 Assets Cash and due from banks $ 20,887 $ 12,881 $ 27,409 $ 13,336 $ 28,561 Interest-bearing deposits 1,431 668 892 538 758 Federal funds sold 5,462 7,764 16,138 25,766 90 Cash and cash equivalents 27,780 21,313 44,439 39,640 29,409 Securities available for sale (at fair value) 164,024 160,883 167,382 190,738 192,197 Securities held to maturity (fair values of $82,514 , $75,236 , $81,489 , $82,610 and $80,926 respectively) 87,081 86,908 87,335 87,889 87,816 Equity securities 1,474 2,273 2,178 2,070 2,032 Loans held for sale 230 971 151 - - Loans receivable, net (allowance for credit losses $12,302 , $12,267 , $11,922 , $11,593 and $12,293 respectively) 1,078,475 1,098,019 1,048,322 973,270 961,865 Accrued interest receivable 5,136 4,716 4,274 4,062 4,006 Foreclosed assets - - - - 160 Premises and equipment, net 13,098 13,242 13,256 13,406 13,164 Mortgage servicing rights, net 1,664 1,684 1,666 1,682 1,610 Federal Home Loan Bank stock (at cost) 6,373 6,373 6,359 4,620 2,516 Cash surrender value of bank-owned life insurance 24,085 23,931 23,776 25,078 24,922 Core deposit intangible 273 297 321 348 382 Goodwill 2,541 2,541 2,541 2,541 2,541 Other assets 11,866 14,094 14,933 14,444 15,069 TOTAL ASSETS $ 1,424,100 $ 1,437,245 $ 1,416,933 $ 1,359,788 $ 1,337,689 Liabilities Non-interest-bearing deposits $ 266,829 $ 288,765 $ 282,153 $ 267,836 $ 292,338 Interest-bearing deposits 874,973 883,474 860,981 839,757 856,417 Total deposits 1,141,802 1,172,239 1,143,134 1,107,593 1,148,755 Federal Home Loan Bank advances 134,000 128,000 133,000 113,000 43,000 Other borrowings 8,058 5,660 5,730 5,033 12,985 Senior subordinated notes 4,774 4,772 4,771 4,769 5,549 Junior subordinated debentures 12,921 12,896 12,870 12,844 12,819 Allowance for credit losses on unfunded commitments 577 512 712 762 - Accrued expenses and other liabilities 12,681 10,258 11,783 10,576 12,639 Total liabilities 1,314,813 1,334,337 1,312,000 1,254,577 1,235,747 Stockholders' equity Preferred stock - no par value: Authorized - 30,000 shares; no shares issued or outstanding Outstanding - 7,200, 7,200, 7,200, 7,200, and 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 - 4,164,735, 4,174,197, 4,190,252, 4,241,501 and 4,297,279 shares, respectively 1,830 1,830 1,830 1,830 1,830 Additional paid-in capital 8,460 8,421 8,382 8,311 8,300 Retained earnings 132,666 131,624 130,396 128,968 126,003 Accumulated other comprehensive loss, net of tax (20,689 ) (26,190 ) (23,240 ) (22,515 ) (24,220 ) Treasury stock, at cost - 1,326,063, 1,316,601, 1,300,546, 1,249,297 and 1,193,519 shares, respectively (20,180 ) (19,977 ) (19,635 ) (18,583 ) (17,171 ) Total stockholders' equity 109,287 102,908 104,933 105,211 101,942 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,424,100 $ 1,437,245 $ 1,416,933 $ 1,359,788 $ 1,337,689
PSB Holdings, Inc. Consolidated Statements of Income Quarter Ended Year Ended (dollars in thousands, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, December except per share data - unaudited) 2023 2023 2023 2023 2022 2023 2022 Interest and dividend income: Loans, including fees $ 14,888 $ 14,263 $ 12,709 $ 11,773 $ 11,251 $ 53,633 $ 39,825 Securities: Taxable 1,147 1,114 1,327 1,331 1,218 4,919 3,817 Tax-exempt 532 533 535 537 539 2,137 2,149 Other interest and dividends 320 238 145 148 141 851 398 Total interest and dividend income 16,887 16,148 14,716 13,789 13,149 61,540 46,189 Interest expense: Deposits 5,526 4,817 3,661 2,989 2,060 16,993 4,439 FHLB advances 1,349 1,321 1,200 547 167 4,417 779 Other borrowings 54 51 48 62 38 215 58 Senior subordinated notes 59 59 58 62 55 238 139 Junior subordinated debentures 254 255 242 234 224 985 771 Total interest expense 7,242 6,503 5,209 3,894 2,544 22,848 6,186 Net interest income 9,645 9,645 9,507 9,895 10,605 38,692 40,003 Provision for credit losses 100 150 100 100 - 450 - Net interest income after provision for credit losses 9,545 9,495 9,407 9,795 10,605 38,242 40,003 Noninterest income: Service fees 360 349 378 361 381 1,448 1,570 Mortgage banking income 247 345 311 325 235 1,228 1,215 Investment and insurance sales commissions 100 158 287 365 498 910 1,715 Net loss on sale of securities (297 ) - (279 ) - - (576 ) - Increase in cash surrender value of life insurance 154 155 149 157 157 615 616 Life insurance death benefit - - 533 - - 533 - Other noninterest income 540 675 605 742 553 2,562 2,328 Total noninterest income 1,104 1,682 1,984 1,950 1,824 6,720 7,444 Noninterest expense: Salaries and employee benefits 4,244 4,514 4,884 5,006 4,700 18,648 17,940 Occupancy and facilities 675 689 698 699 641 2,761 2,622 Loss (gain) on foreclosed assets 1 - 4 (50 ) 2 (45 ) - Data processing and other office operations 1,001 953 951 880 910 3,785 3,589 Advertising and promotion 244 161 166 162 180 733 690 Core deposit intangible amortization 24 24 27 34 34 109 153 Other noninterest expenses 1,169 1,113 1,202 1,073 1,219 4,557 4,522 Total noninterest expense 7,358 7,454 7,932 7,804 7,686 30,548 29,516 Income before provision for income taxes 3,291 3,723 3,459 3,941 4,743 14,414 17,931 Provision for income taxes 878 2,374 652 941 1,143 4,845 4,294 Net income $ 2,413 $ 1,349 $ 2,807 $ 3,000 $ 3,600 $ 9,569 $ 13,637 Preferred stock dividends declared $ 122 $ 122 $ 122 $ 122 $ 81 $ 486 $ 81 Net income available to common shareholders $ 2,291 $ 1,227 $ 2,685 $ 2,878 $ 3,519 $ 9,083 $ 13,556 Basic earnings per common share $ 0.55 $ 0.29 $ 0.64 $ 0.67 $ 0.80 $ 2.16 $ 3.07 Diluted earnings per common share $ 0.55 $ 0.29 $ 0.64 $ 0.67 $ 0.80 $ 2.16 $ 3.07
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: 2023 2023 2023 2023 2022 Interest income $ 16,887 $ 16,148 $ 14,716 $ 13,789 $ 13,149 Interest expense $ 7,242 $ 6,503 $ 5,209 $ 3,894 $ 2,544 Net interest income $ 9,645 $ 9,645 $ 9,507 $ 9,895 $ 10,605 Provision for credit losses $ 100 $ 150 $ 100 $ 100 $ - Other noninterest income $ 1,104 $ 1,682 $ 1,984 $ 1,950 $ 1,824 Other noninterest expense $ 7,358 $ 7,454 $ 7,932 $ 7,804 $ 7,686 Net income available to common shareholders $ 2,291 $ 1,227 $ 2,685 $ 2,878 $ 3,519 Basic earnings per common share (3) $ 0.55 $ 0.29 $ 0.64 $ 0.67 $ 0.80 Diluted earnings per common share (3) $ 0.55 $ 0.29 $ 0.64 $ 0.67 $ 0.80 Dividends declared per common share (3) $ 0.30 $ - $ 0.30 $ - $ 0.25 Tangible net book value per common share (4) $ 23.84 $ 22.25 $ 22.64 $ 22.43 $ 21.37 Semi-annual dividend payout ratio 38.14 % n/a 27.38 % n/a 15.27 % Average common shares outstanding 4,168,924 4,186,940 4,218,226 4,275,160 4,377,330 Balance sheet - average balances: Loans receivable, net of allowances for credit loss $ 1,081,851 $ 1,076,158 $ 1,000,349 $ 964,029 $ 945,551 Assets $ 1,424,240 $ 1,425,522 $ 1,367,363 $ 1,336,511 $ 1,321,776 Deposits $ 1,148,399 $ 1,149,624 $ 1,098,039 $ 1,124,091 $ 1,146,066 Stockholders' equity $ 105,060 $ 105,758 $ 106,762 $ 103,406 $ 100,037 Performance ratios: Return on average assets (1) 0.67 % 0.38 % 0.82 % 0.91 % 1.08 % Return on average common stockholders' equity (1) 9.29 % 4.94 % 10.82 % 12.13 % 14.66 % Return on average tangible common stockholders' equity (1)(4) 9.64 % 5.17 % 11.23 % 12.63 % 15.23 % Net loan charge-offs to average loans (1) 0.00 % 0.00 % -0.07 % -0.02 % 0.03 % Nonperforming loans to gross loans 0.54 % 0.55 % 0.60 % 0.62 % 0.64 % Nonperforming assets to total assets 0.42 % 0.42 % 0.45 % 0.45 % 0.48 % Allowance for credit losses to gross loans 1.13 % 1.10 % 1.12 % 1.18 % 1.26 % Nonperforming assets to tangible equity plus the allowance for credit losses (4) 5.40 % 5.90 % 6.00 % 5.80 % 6.22 % Net interest rate margin (1)(2) 2.88 % 2.88 % 2.98 % 3.21 % 3.41 % Net interest rate spread (1)(2) 2.20 % 2.27 % 2.46 % 2.77 % 3.10 % Service fee revenue as a percent of average demand deposits (1) 0.52 % 0.50 % 0.58 % 0.52 % 0.50 % Noninterest income as a percent of gross revenue 6.14 % 9.43 % 11.88 % 12.39 % 12.18 % Efficiency ratio (2) 67.04 % 64.58 % 68.09 % 65.02 % 61.06 % Noninterest expenses to average assets (1) 2.05 % 2.07 % 2.33 % 2.37 % 2.31 % Average stockholders' equity less accumulated other comprehensive income (loss) to average assets 8.88 % 9.00 % 9.33 % 9.32 % 9.23 % Tangible equity to tangible assets (4) 7.49 % 6.98 % 7.22 % 7.54 % 7.42 % Stock price information: High $ 22.30 $ 22.50 $ 21.38 $ 25.75 $ 22.74 Low $ 20.10 $ 20.35 $ 19.75 $ 20.00 $ 21.50 Last trade value at quarter-end $ 22.11 $ 21.15 $ 20.35 $ 21.15 $ 21.90 (1) Annualized (2) The yield on federally 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 core deposit intangibles.
PSB Holdings, Inc. Consolidated Statements of Comprehensive Income Quarter Ended Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, (dollars in thousands - unaudited) 2023 2023 2023 2023 2022 Net income $ 2,413 $ 1,349 $ 2,807 $ 3,000 $ 3,600 Other comprehensive income, net of tax: Unrealized gain (loss) on securities available for sale 5,323 (3,085 ) (1,168 ) 1,601 (116 ) Reclassification adjustment for security loss included in net income 235 - 202 - - Amortization of unrealized loss included in net income on securities available for sale transferred to securities held to maturity 91 91 107 129 93 Unrealized gain (loss) on interest rate swap (109 ) 79 161 (1 ) 11 Reclassification adjustment of interest rate swap settlements included in earnings (39 ) (35 ) (27 ) (24 ) (8 ) Other comprehensive income (loss) 5,501 (2,950 ) (725 ) 1,705 (20 ) Comprehensive income (loss) $ 7,914 $ (1,601 ) $ 2,082 $ 4,705 $ 3,580
PSB Holdings, Inc. Nonperforming Assets as of: Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, (dollars in thousands) 2023 2023 2023 2023 2022 Nonaccrual loans (excluding restructured loans) $ 5,596 $ 5,807 $ 6,000 $ 5,773 $ 5,879 Nonaccrual restructured loans 34 42 50 57 62 Restructured loans not on nonaccrual 310 256 261 265 270 Accruing loans past due 90 days or more - - - - - Total nonperforming loans 5,940 6,105 6,311 6,095 6,211 Other real estate owned - - - - 160 Total nonperforming assets $ 5,940 $ 6,105 $ 6,311 $ 6,095 $ 6,371 Nonperforming loans as a % of gross loans receivable 0.54 % 0.55 % 0.60 % 0.62 % 0.64 % Total nonperforming assets as a % of total assets 0.42 % 0.42 % 0.45 % 0.45 % 0.48 % Allowance for credit losses as a % of nonperforming loans 207.10 % 200.93 % 188.91 % 190.21 % 197.92 %
PSB Holdings, Inc. Nonperforming Assets >= $500,000 net book value before specific reserves At December 31, 2023 (dollars in thousands) Gross Specific Collateral Description Asset Type Principal Reserves Real estate - Buffet Style Restaurant Nonaccrual $ 2,676 $ 935 Real estate - Independent Auto Repair Nonaccrual 654 21 Total listed nonperforming assets $ 3,330 $ 956 Total bank wide nonperforming assets $ 5,940 $ 1,340 Listed assets as a % of total nonperforming assets 56 % 71 %
PSB Holding, Inc. Loan Composition by Collateral Type Quarter-ended (dollars in thousands) Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Commercial: Commercial and instrustrial $ 117,207 $ 138,299 $ 145,434 $ 133,427 $ 129,640 Agriculture 12,304 12,464 13,326 12,434 12,979 Municipal 31,530 27,186 25,222 6,430 9,915 Total Commercial 161,041 177,949 183,982 152,291 152,534 Commercial Real Estate: Commercial real estate 536,209 539,488 490,657 469,395 471,225 Construction and development 81,701 86,456 99,769 103,108 100,775 Total Commercial Real Estate 617,910 625,944 590,426 572,503 572,000 Residential real estate: Residential 274,453 274,632 274,692 261,415 253,740 Construction and development 33,960 33,141 41,485 26,480 24,367 HELOC 29,766 29,044 26,220 25,001 24,173 Total Residential Real Estate 338,179 336,817 342,397 312,896 302,280 Consumer installment 4,357 4,350 4,142 4,079 4,734 Subtotals - Gross loans 1,121,487 1,145,060 1,120,947 1,041,769 1,031,548 Loans in process of disbursement (31,359 ) (35,404 ) (61,308 ) (57,448 ) (57,963 ) Subtotals - Disbursed loans 1,090,128 1,109,656 1,059,639 984,321 973,585 Net deferred loan costs 649 630 605 542 573 Allowance for credit losses (12,302 ) (12,267 ) (11,922 ) (11,593 ) (12,293 ) Total loans receivable $ 1,078,475 $ 1,098,019 $ 1,048,322 $ 973,270 $ 961,865
PSB Holding, Inc. Selected Commercial Real Estate Loans by Purpose Dec 31, Sep 30, June 30, Mar 31, Dec 31, (dollars in thousands) 2023 2023 2023 2023 2022 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 $ 132,386 13.2 % $ 133,466 13.3 % $ 119,573 12.4 % $ 121,559 13.0 % $ 120,232 13.1 % Industrial and Warehousing 83,817 8.3 88,906 8.9 84,049 8.7 78,934 8.5 76,536 8.3 Retail 35,419 3.5 35,281 3.5 34,004 3.5 34,427 3.7 32,587 3.5 Hotels 36,100 3.6 31,819 3.2 33,329 3.5 31,069 3.3 32,940 3.6 Office 6,701 0.7 6,746 0.7 8,395 0.9 8,544 0.9 8,652 0.9 (1) Percentage of commercial and commercial real estate portfolio and commitments.
PSB Holdings, Inc. Deposit Composition Insured and Collateralized Deposits December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2023 2023 2023 2023 2022 $ % $ % $ % $ % $ % Non-interest bearing demand $ 197,571 17.3 % $ 209,133 17.8 % $ 201,351 17.6 % $ 205,350 18.6 % $ 203,115 17.7 % Interest-bearing demand and savings 317,984 27.8 % 307,620 26.3 % 310,006 27.1 % 329,364 29.7 % 345,854 30.1 % Money market deposits 142,887 12.5 % 135,910 11.6 % 126,851 11.1 % 128,576 11.6 % 131,400 11.4 % Retail and local time deposits <= $250 149,145 13.1 % 144,733 12.3 % 140,572 12.3 % 136,090 12.3 % 130,205 11.3 % Total core deposits 807,587 70.7 % 797,396 68.0 % 778,780 68.1 % 799,380 72.2 % 810,574 70.5 % Retail and local time deposits > $250 23,000 2.0 % 22,750 1.9 % 20,250 1.8 % 17,000 1.5 % 14,500 1.3 % Broker & national time deposits <= $250 3,470 0.3 % 3,222 0.3 % 3,965 0.3 % 5,953 0.5 % 6,451 0.6 % Broker & national time deposits > $250 70,020 6.1 % 88,614 7.6 % 93,956 8.2 % 74,485 6.8 % 82,439 7.2 % Totals $ 904,077 79.1 % $ 911,982 77.8 % $ 896,951 78.4 % $ 896,818 81.0 % $ 913,964 79.6 % PSB Holdings, Inc. Deposit Composition Uninsured Deposits December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2023 2023 2023 2023 2022 $ % $ % $ % $ % $ % Non-interest bearing demand $ 69,258 6.1 % $ 79,632 6.8 % $ 80,802 7.1 % $ 62,486 5.6 % $ 89,223 7.7 % Interest-bearing demand and savings 20,316 1.8 % 22,847 1.9 % 22,604 2.0 % 24,854 2.2 % 49,917 4.3 % Money market deposits 124,518 10.9 % 133,653 11.4 % 127,871 11.2 % 109,894 10.0 % 84,673 7.4 % Retail and local time deposits <= $250 - 0.0 % - 0.0 % - 0.0 % - 0.0 % - 0.0 % Total core deposits 214,092 18.8 % 236,132 20.1 % 231,277 20.3 % 197,234 17.8 % 223,813 19.4 % Retail and local time deposits > $250 23,633 2.1 % 24,120 2.1 % 14,906 1.3 % 13,541 1.2 % 10,978 1.0 % 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 $ 237,725 20.9 % $ 260,252 22.2 % $ 246,183 21.6 % $ 210,775 19.0 % $ 234,791 20.4 % PSB Holdings, Inc. Deposit Composition Total Deposits December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2023 2023 2023 2023 2022 $ % $ % $ % $ % $ % Non-interest bearing demand $ 266,829 23.4 % $ 288,765 24.7 % $ 282,153 24.7 % $ 267,836 24.2 % $ 292,338 25.4 % Interest-bearing demand and savings 338,300 29.6 % 330,467 28.2 % 332,610 29.1 % 354,218 32.0 % 395,771 34.5 % Money market deposits 267,405 23.4 % 269,563 22.8 % 254,722 22.3 % 238,470 21.5 % 216,073 18.8 % Retail and local time deposits <= $250 149,145 13.1 % 144,738 12.4 % 140,572 12.3 % 136,090 12.3 % 130,205 11.3 % Total core deposits 1,021,679 89.5 % 1,033,533 88.1 % 1,010,057 88.4 % 996,614 90.0 % 1,034,387 90.0 % Retail and local time deposits > $250 46,633 4.1 % 46,870 4.0 % 35,156 3.1 % 30,541 2.8 % 25,478 2.2 % Broker & national time deposits <= $250 3,470 0.3 % 3,222 0.3 % 3,965 0.3 % 5,953 0.5 % 6,451 0.6 % Broker & national time deposits > $250 70,020 6.1 % 88,614 7.6 % 93,956 8.2 % 74,485 6.7 % 82,439 7.2 % Totals $ 1,141,802 100.0 % $ 1,172,239 100.0 % $ 1,143,134 100.0 % $ 1,107,593 100.0 % $ 1,148,755 100.0 %
PSB Holdings, Inc. Average Balances ($000) and Interest Rates (dollars in thousands) Quarter ended December 31, 2023 Quarter ended September 30, 2023 Quarter ended December 31, 2022 Average Yield / Average Yield / Average Yield / Balance Interest Rate Balance Interest Rate Balance Interest Rate Assets Interest-earning assets: Loans (1)(2) $ 1,094,152 $ 14,974 5.43 % $ 1,088,137 $ 14,337 5.23 % $ 957,926 $ 11,266 4.67 % Taxable securities 167,366 1,147 2.72 % 173,287 1,114 2.55 % 197,070 1,218 2.45 % Tax-exempt securities (2) 80,922 673 3.30 % 81,327 675 3.29 % 82,074 682 3.30 % FHLB stock 6,373 158 9.84 % 6,368 127 7.91 % 2,516 32 5.05 % Other 11,846 162 5.43 % 8,195 111 5.37 % 14,131 109 3.06 % Total (2) 1,360,659 17,114 4.99 % 1,357,314 16,364 4.78 % 1,253,717 13,307 4.21 % Non-interest-earning assets: Cash and due from banks 16,243 19,299 18,941 Premises and equipment, net 13,243 13,266 13,123 Cash surrender value ins 23,990 23,840 24,822 Other assets 22,406 23,782 23,548 Allowance for credit losses (12,301 ) (11,979 ) (12,375 ) Total $ 1,424,240 $ 1,425,522 $ 1,321,776 Liabilities & stockholders' equity Interest-bearing liabilities: Savings and demand deposits $ 327,036 $ 1,296 1.57 % $ 335,214 $ 1,198 1.42 % $ 376,075 $ 690 0.73 % Money market deposits 272,087 1,820 2.65 % 255,823 1,489 2.31 % 224,701 601 1.06 % Time deposits 273,332 2,410 3.50 % 279,971 2,130 3.02 % 241,290 769 1.26 % FHLB borrowings 133,560 1,349 4.01 % 134,386 1,321 3.90 % 35,522 167 1.87 % Other borrowings 6,999 54 3.06 % 5,681 51 3.56 % 11,307 38 1.33 % Senior sub. notes 4,773 59 4.90 % 4,772 59 4.91 % 4,522 55 4.83 % Junior sub. debentures 12,909 254 7.81 % 12,883 255 7.85 % 12,806 224 6.94 % Total 1,030,696 7,242 2.79 % 1,028,730 6,503 2.51 % 906,223 2,544 1.11 % Non-interest-bearing liabilities: Demand deposits 275,944 278,616 304,000 Other liabilities 12,540 12,431 11,516 Stockholders' equity 105,060 105,745 100,037 Total $ 1,424,240 $ 1,425,522 $ 1,321,776 Net interest income $ 9,872 $ 9,861 $ 10,763 Rate spread 2.20 % 2.27 % 3.10 % Net yield on interest-earning assets 2.88 % 2.88 % 3.41 % (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% .
PSB Holdings, Inc. Average Balances ($000) and Interest Rates (dollars in thousands) Year ended December 31, 2023 Year ended December 31, 2022 Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Assets Interest-earning assets: Loans (1)(2) $ 1,043,144 $ 53,824 5.16 % $ 927,720 $ 39,871 4.30 % Taxable securities 183,984 4,919 2.67 % 204,630 3,817 1.87 % Tax-exempt securities (2) 81,481 2,705 3.32 % 82,977 2,720 3.28 % FHLB stock 5,304 386 7.28 % 2,597 114 4.39 % Other 9,073 465 5.13 % 20,848 284 1.36 % Total (2) 1,322,986 62,299 4.71 % 1,238,772 46,806 3.78 % Non-interest-earning assets: Cash and due from banks 17,110 18,772 Premises and equipment, net 13,294 12,988 Cash surrender value ins 24,331 24,591 Other assets 23,136 20,896 Allowance for credit losses (12,079 ) (12,347 ) Total $ 1,388,778 $ 1,303,672 Liabilities & stockholders' equity Interest-bearing liabilities: Savings and demand deposits $ 344,906 $ 4,582 1.33 % $ 381,849 $ 1,251 0.33 % Money market deposits 249,079 5,328 2.14 % 223,409 1,210 0.54 % Time deposits 261,595 7,083 2.71 % 227,570 1,978 0.87 % FHLB borrowings 116,282 4,417 3.80 % 49,784 779 1.56 % Other borrowings 7,061 215 3.04 % 7,439 58 0.78 % Senior sub. notes 4,927 238 4.83 % 3,010 139 4.62 % Junior sub. debentures 12,870 985 7.65 % 12,768 771 6.04 % Total 996,720 22,848 2.29 % 905,829 6,186 0.68 % Non-interest-bearing liabilities: Demand deposits 274,273 285,261 Other liabilities 12,397 11,330 Stockholders' equity 105,388 101,252 Total $ 1,388,778 $ 1,303,672 Net interest income $ 39,451 $ 40,620 Rate spread 2.42 % 3.10 % Net yield on interest-earning assets 2.98 % 3.28 % (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% .
What were PSB Holdings, Inc.'s fourth quarter earnings per share and net income?
PSB Holdings, Inc. reported fourth-quarter earnings of $0.55 per share on net income of $2.3 million.
What was the company's net interest income for the quarter ended December 31, 2023?
The company's net interest income remained unchanged at $9.6 million for the quarter ended December 31, 2023.
What was the effective tax rate for the quarter ended December 31, 2023?
The effective tax rate declined to 26.7% for the quarter ended December 31, 2023.
What was the tangible book value per common share at December 31, 2023?
Tangible book value per common share increased 7.1% to $23.84 at December 31, 2023.
How much did the company's loans decrease by in the fourth quarter?
Loans decreased $19.5 million in the fourth quarter ended December 31, 2023.
What was the total assets value at December 31, 2023?
Total assets decreased slightly to $1.42 billion at December 31, 2023.
What was the total deposits value at December 31, 2023?
Total deposits decreased $30.4 million to $1.14 billion at December 31, 2023.
What was the company's tangible stockholder equity as a percent of total tangible assets at December 31, 2023?
The company's tangible stockholder equity as a percent of total tangible assets was 7.49% at December 31, 2023.
