PSB Holdings, Inc. Reports Quarterly Earnings of $0.86 Per Share; Net Interest Margin and Tangible Net Book Value Expansion Continues

Rhea-AI Summary

PSB Holdings (OTCQX: PSBQ) reported Q3 2025 earnings of $0.86 per diluted share on net income of $3.5 million, up from $0.69 and $2.9 million in Q3 2024. Net interest income rose to $11.3 million and net interest margin improved to 3.16%. Tangible book value per share increased 10.0% year-over-year to $29.05. Deposits totaled $1.19 billion and loans were $1.12 billion. Non-performing assets increased to $17.0 million (1.13% of assets), including one commercial loan with a collateral shortfall that may proceed to liquidation if not resolved.

Positive

• EPS +24.6% YoY to $0.86 (Q3 2025)
• Net income +20.7% YoY to $3.5M (Q3 2025)
• Net interest income $11.3M in Q3 2025
• Tangible book value per share +10.0% YoY

Negative

• Non-performing assets $17.0M (1.13% of assets) at Sep 30, 2025
• One commercial loan with collateral shortfall may enter liquidation in Q4 2025

10/27/2025 - 08:30 AM

WAUSAU, Wis., Oct. 27, 2025 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported third quarter earnings ending September 30, 2025 of $0.86 per diluted common share on net income of $3.5 million, compared to $0.89 per diluted common share on net income of $3.6 million during the second quarter ending June 30, 2025, and $0.69 per diluted common share on net income of $2.9 million during the third quarter ending September 30, 2024.

PSB’s third quarter of 2025 operating results reflected the following changes from the second quarter of 2025: (1) a stronger net interest margin as asset yields rose and funding costs declined; (2) slightly lower non-interest income from lower mortgage banking income and debit card interchange incentives; and (3) higher non-interest expenses due to higher health insurance costs.

“Our third quarter results reflect a return of our net interest margin to historical levels, while our operations remain efficient. Additionally, we have gained traction in our expansion into the Milwaukee region as this area has provided good lending opportunities,” stated Scott Cattanach, President and CEO. “Over the past year, we have increased our tangible capital by $9.0 million after payment of dividends and stock repurchases. With earnings totaling $7.1 million over the past two quarters and expectations of earnings to continue near this level, we should be able to expand capital in 2026 which will push us closer to minimal capitalization thresholds to enter various stock indices in years to come. Additionally, we are hopeful our strong EPS levels support stock price earnings multiples consistent to our peers.”

September 30, 2025, Highlights:

• Net interest income increased $617,000 to $11.3 million for the quarter ended September 30, 2025, from $10.7 million for the quarter ended June 30, 2025, due in part to higher yields on loans, lower deposit and borrowing costs and one additional day during the quarter.
  
  
• Noninterest income decreased $171,000 to $1.9 million for the quarter ended September 30, 2025, compared to $2.1 million the prior quarter due to slightly lower mortgage banking income and lower SBA gains. The second quarter was also elevated due to receipt of debit incentive revenues.
  
  
• Noninterest expenses increased $613,000 to $8.8 million during the quarter ended September 30, 2025 from $8.2 million for the quarter ended June 30, 2025, reflecting higher salary and benefit expenses primarily related to health insurance benefit plan claims.
  
  
• Net loans increased $5.8 million, or 1% in the third quarter ended September 30, 2025, to $1.12 billion compared to June 30, 2025. Allowance for credit losses remained at 1.12% of gross loans.
  
  
• Non-performing assets increased $1.3 million to $17.0 million, or 1.13% of total assets at September 30, 2025 compared to 1.04% the previous quarter. The increase relates to a $1.3 million loan secured by a non-owner occupied commercial retail building that matures in the fourth quarter with debt service insufficient to renew. Specific reserves of $418,000 at September 30, 2025 are maintained for estimated loss.
  
  
• Total deposits increased $11.6 million to $1.19 billion at September 30, 2025 from $1.18 billion at June 30, 2025. Core deposits increased $7.3 million while brokered deposits and time deposits greater than $250,000 increased $4.3 million.
  
  
• Return on average tangible common equity was 12.14% for the quarter ended September 30, 2025, compared to 13.11% the prior quarter and 10.96% in the year ago quarter.
  
  
• Tangible book value per common share was up 10.00% over the past year to $29.05 at September 30, 2025, compared to $26.41 at September 30, 2024. Additionally, PSB paid dividends totaling $0.66 per share during the past year.
  
  

Balance Sheet and Asset Quality Review

Total assets decreased $9.9 million during the third quarter to $1.50 billion at September 30, 2025, compared to $1.51 billion at June 30, 2025. Cash and cash equivalents decreased $20.0 million to $37.4 million at September 30, 2025 from $57.5 million at June 30, 2025, as liquid funds were redeployed into new loans and investment securities. Investment securities available for sale increased $6.4 million to $190.7 million at September 30, 2025, from $184.3 million one quarter earlier.

Gross loans receivable increased $8.7 million to $1.16 billion at September 30, 2025, compared to one quarter earlier. Commercial real estate loans increased $2.8 million to $569.4 million at September 30, 2025, compared to three months earlier while commercial & industrial loans increased $1.9 million to $137.2 million over the same time period. Commercial construction and development loans increased $3.4 million to $81.3 million at September 30, 2025, while residential real estate loans increased $5.9 million from the prior quarter to $342.9 million. Agricultural loans decreased $0.8 million to $12.4 million at September 30, 2025 compared to three months earlier and municipal loans declined $4.4 million over the same time period. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 56.3% of gross loans, followed by residential real estate loans at 29.7% of gross loans, commercial non-real estate loans at 13.6% and consumer loans at 0.4%. Our lending pipeline remains strong heading into the fourth quarter.

The allowance for credit losses remained at 1.12% of gross loans at September 30, 2025 while annualized net charge-offs to average loans were zero for the quarter ended September 30, 2025. Non-performing assets increased $1.3 million to $17.0 million, or 1.13% of total assets at September 30, 2025, up from 1.04% at June 30, 2025. The increase in non-performing assets reflects the addition of a non-owner occupied commercial building loan that matures in the fourth quarter of 2025. The tenant lease terms do not provide sufficient income to support the debt service and there is a collateral shortfall. If satisfactory refinance terms are not reached, a liquidation process will begin. Specific reserves have already been established on this loan. Approximately 78% of all non-performing assets consisted of six lending relationships. New ownership and capitalization with collection of all past due payments is expected in the December 2025 quarter from the largest non-performing borrower with $4.2 million of principal.

Total deposits increased $11.6 million over the prior quarter to $1.19 billion. Overall, core deposits increased $7.3 million during the quarter while brokered deposits and time deposits greater than $250,000 increased $4.3 million.

At September 30, 2025, non-interest bearing demand deposits decreased to 23.4% of total deposits from 23.6% the prior quarter, while money market deposits increased to 23.2% at September 30, 2025 from 23.0% one quarter earlier. The additional deposit inflow and existing liquidity helped to reduce high costing FHLB advances during the quarter by $25.0 million to $141.0 million at September 30, 2025.

Tangible stockholder equity as a percentage of total tangible assets increased to 8.34% at September 30, 2025, compared to 7.95% at June 30, 2025, and 7.85% at September 30, 2024.

Tangible net book value per common share increased $2.64 during the quarter to $29.05, at September 30, 2025 compared to $26.41 one year earlier, an increase of 10.0% after dividends of $0.66 were paid to shareholders. Relative to the prior quarter’s tangible book value per common share of $27.77, tangible net book value per common share increased primarily due to earnings and an increase in the fair market value of available for sale investment securities. The accumulated other comprehensive loss on the investment portfolio was $14.2 million at September 30, 2025, compared to $15.8 million one quarter earlier.

Operations Review

Net interest income increased to $11.3 million (on a net margin of 3.16%) for the third quarter of 2025, from $10.7 million (on a net margin of 3.09%) for the second quarter of 2025, and increased from $9.9 million (on a net margin of 2.90%) for the third quarter of 2024. The higher net interest income in the current period primarily relates to an increase in loan and investments yields during the quarter and a decrease in the cost of funds. Earning asset yields increased to 5.43% during the third quarter of 2025 from 5.40% the prior period and cost of funds decreased five basis points to 3.01% compared to 3.06% during the second quarter of 2025. Relative to one year earlier, interest-earning asset yields were up 14 basis points while the overall cost of funds declined 12 basis points.

The increase in earning asset yields was due to higher yields on loan originations, loan renewals and security repricing. Loan yields increased during the third quarter of 2025 to 5.93% from 5.91% during the second quarter of 2025. Taxable security yields were 3.38% for the quarter ended September 30, 2025, compared to 3.24% for the quarter ended June 30, 2025, while a smaller balance of tax-exempt security yields declined to 3.33% for the quarter ended September 30, 2025 from 3.35% one quarter earlier.

The decrease in funding costs was due to lower deposit costs, and costs related to FHLB advances and junior subordinated debentures. Deposits costs declined 1 basis point to 2.07% for the quarter ended September 30, 2025 from 2.08% the prior quarter. Similarly, FHLB advance costs declined 1 basis point to 4.39% for the third quarter from 4.40% the prior quarter. The cost of junior subordinated debentures declined 19 basis points to 7.49% for the quarter ended September 30, 2025 from 7.68% for the quarter ended June 30, 2025.

Total noninterest income decreased $171,000 during the third quarter of 2025 to $1.9 million. A decrease in SBA gains and mortgage banking income during the quarter accounted for the majority of the change while the second quarter reflected the receipt of debit card interchange incentive revenue.

Noninterest expenses increased $613,000 to $8.8 million for the third quarter of 2025, compared to $8.2 million for the second quarter of 2025, and increased $655,000 from $8.2 million for the third quarter of 2024. On a linked quarter basis, salary and benefits expense increased $618,000 as health insurance claims increased $284,000 during the quarter and a change in the timing of incentive payments resulted in elevated salary and FICA expenses during the third quarter. Occupancy and facilities costs decreased $7,000, data processing and other office operation expenses decreased $67,000, foreclosed real estate was sold for a $1,000 loss for the third quarter compared to a gain of $58,000 the previous quarter and advertising and promotion expenses declined $51,000.

Income taxes decreased $32,000 during the third quarter to $720,000, from $752,000 one quarter earlier on slightly lower pre-tax income levels. The effective tax rate for the quarter ended September 30, 2025, was 16.7% compared to 16.6% for the second quarter ended June 30, 2025.

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. 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
September 30, June 30, March 31, 2025, and September 30, 2024, unaudited, December 31, 2024 derived from audited financial statements
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(dollars in thousands, except per share data)		2025			2025			2025			2024			2024
Assets
Cash and due from banks	$	14,221		$	23,022		$	19,628		$	21,414		$	23,554
Interest-bearing deposits		3,630			2,890			702			3,724			5,126
Federal funds sold		19,641			31,624			2,351			15,360			58,434
Cash and cash equivalents		37,492			57,536			22,681			40,498			87,114
Securities available for sale (at fair value)		190,709			184,320			182,594			189,086			174,911
Securities held to maturity (fair values of $76,104, $75,016, $77,375, $79,654 and
$82,389 respectively)		82,195			83,123			85,373			86,748			86,847
Equity securities		2,885			2,885			2,847			2,782			1,752
Loans held for sale		145			349			734			217			-
Loans receivable, net (allowance for credit losses of $12,686, $12,553, $12,392,
$12,342 and $12,598 respectively)		1,115,137			1,109,296			1,096,422			1,078,204			1,057,974
Accrued interest receivable		5,023			5,006			5,184			5,042			4,837
Foreclosed assets		-			-			300			-			-
Premises and equipment, net		13,355			13,397			13,522			13,805			14,065
Mortgage servicing rights, net		1,685			1,684			1,717			1,742			1,727
Federal Home Loan Bank stock (at cost)		8,641			9,297			8,825			8,825			8,825
Cash surrender value of bank-owned life insurance		25,242			25,067			24,897			24,732			24,565
Core deposit intangible		309			330			353			195			212
Goodwill		3,495			3,495			3,495			2,541			2,541
Other assets		10,420			10,832			10,828			11,539			10,598
TOTAL ASSETS	$	1,496,733		$	1,506,617		$	1,459,772		$	1,465,956		$	1,475,968
Liabilities
Non-interest-bearing deposits	$	278,615		$	277,239		$	245,672		$	259,515		$	265,078
Interest-bearing deposits		910,571			900,303			884,364			887,834			874,035
Total deposits		1,189,186			1,177,542			1,130,036			1,147,349			1,139,113
Federal Home Loan Bank advances		140,950			165,950			170,250			162,250			181,250
Other borrowings		6,062			6,250			6,343			6,872			6,128
Senior subordinated notes		4,786			4,784			4,783			4,781			4,779
Junior subordinated debentures		13,100			13,075			13,049			13,023			12,998
Allowance for credit losses on unfunded commitments		622			622			672			672			477
Accrued expenses and other liabilities		13,651			15,118			13,554			14,723			12,850
Total liabilities		1,368,357			1,383,341			1,338,687			1,349,670			1,357,595
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 - 4,040,538, 4,041,573, 4,084,708, 4,092,977 and
4,105,594 shares, respectively		1,830			1,830			1,830			1,830			1,830
Additional paid-in capital		8,707			8,659			8,608			8,610			8,567
Retained earnings		148,029			144,548			142,277			139,838			138,142
Accumulated other comprehensive income (loss), net of tax		(14,166	)		(15,764	)		(16,692	)		(19,314	)		(15,814	)
Treasury stock, at cost - 1,450,260, 1,449,225, 1,406,090, 1,397,821 and
1,385,204 shares, respectively		(23,224	)		(23,197	)		(22,138	)		(21,878	)		(21,552	)
Total stockholders' equity		128,376			123,276			121,085			116,286			118,373
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,496,733		$	1,506,617		$	1,459,772		$	1,465,956		$	1,475,968

PSB Holdings, Inc.
Consolidated Statements of Income
	Quarter Ended															Nine Months Ended
(dollars in thousands,	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			September
except per share data - unaudited)		2025			2025			2025			2024			2024			2025			2024
Interest and dividend income:
Loans, including fees	$	16,745		$	16,510		$	15,782		$	15,646		$	15,634		$	49,037		$	46,176
Securities:
Taxable		1,645			1,566			1,641			1,545			1,345			4,852			3,837
Tax-exempt		500			506			517			522			522			1,523			1,569
Other interest and dividends		717			332			345			948			699			1,394			1,307
Total interest and dividend income		19,607			18,914			18,285			18,661			18,200			56,806			52,889
Interest expense:
Deposits		6,207			5,934			5,884			6,027			5,905			18,025			17,825
FHLB advances		1,707			1,899			1,792			1,890			2,038			5,398			5,348
Other borrowings		45			48			47			57			57			140			175
Senior subordinated notes		59			58			59			59			59			176			176
Junior subordinated debentures		247			250			248			252			252			745			758
Total interest expense		8,265			8,189			8,030			8,285			8,311			24,484			24,282
Net interest income		11,342			10,725			10,255			10,376			9,889			32,322			28,607
Provision for credit losses		138			110			117			-			-			365			195
Net interest income after provision for credit losses		11,204			10,615			10,138			10,376			9,889			31,957			28,412
Noninterest income:
Service fees		363			366			358			362			367			1,087			1,053
Mortgage banking income		363			411			250			414			433			1,024			1,174
Investment and insurance sales commissions		345			335			326			226			230			1,006			573
Net loss on sale of securities		-			-			(1	)		(511	)		-			(1	)		(495	)
Increase in cash surrender value of life insurance		176			170			163			166			165			509			481
Other noninterest income		678			814			770			620			648			2,262			2,007
Total noninterest income		1,925			2,096			1,866			1,277			1,843			5,887			4,793
Noninterest expense:
Salaries and employee benefits		5,446			4,828			5,302			4,691			4,771			15,576			15,061
Occupancy and facilities		712			719			786			691			757			2,217			2,211
Loss (gain) on foreclosed assets		1			(58	)		-			-			1			(57	)		1
Data processing and other office operations		1,122			1,189			1,201			1,111			1,104			3,512			3,173
Advertising and promotion		138			189			129			141			164			456			464
Core deposit intangible amortization		22			23			23			17			17			68			61
Other noninterest expenses		1,365			1,303			1,528			1,351			1,337			4,196			3,900
Total noninterest expense		8,806			8,193			8,969			8,002			8,151			25,968			24,871
Income before provision for income taxes		4,323			4,518			3,035			3,651			3,581			11,876			8,334
Provision for income taxes		720			752			473			524			593			1,945			1,172
Net income	$	3,603		$	3,766		$	2,562		$	3,127		$	2,988		$	9,931		$	7,162
Preferred stock dividends declared	$	122		$	122		$	122		$	122		$	122		$	366		$	366
Net income available to common shareholders	$	3,481		$	3,644		$	2,440		$	3,005		$	2,866		$	9,565		$	6,796
Basic earnings per common share	$	0.86		$	0.90		$	0.60		$	0.73		$	0.69		$	2.35		$	1.64
Diluted earnings per common share	$	0.86		$	0.89		$	0.60		$	0.73		$	0.69		$	2.35		$	1.64

PSB Holdings, Inc.
Quarterly Financial Summary
(dollars in thousands, except per share data)		Quarter ended
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
Earnings and dividends:			2025			2025			2025			2024			2024
	Interest income	$	19,607		$	18,914		$	18,285		$	18,661		$	18,200
	Interest expense	$	8,265		$	8,189		$	8,030		$	8,285		$	8,311
	Net interest income	$	11,342		$	10,725		$	10,255		$	10,376		$	9,889
	Provision for credit losses	$	138		$	110		$	117		$	-		$	-
	Other noninterest income	$	1,925		$	2,096		$	1,866		$	1,277		$	1,843
	Other noninterest expense	$	8,806		$	8,193		$	8,969		$	8,002		$	8,151
	Net income available to common shareholders	$	3,481		$	3,644		$	2,440		$	3,005		$	2,866
	Basic earnings per common share (3)	$	0.86		$	0.90		$	0.60		$	0.73		$	0.69
	Diluted earnings per common share (3)	$	0.86		$	0.89		$	0.60		$	0.73		$	0.69
	Dividends declared per common share (3)	$	-		$	0.34		$	-		$	0.32		$	-
	Tangible net book value per common share (4)	$	29.05		$	27.77		$	26.94		$	25.98		$	26.41
	Semi-annual dividend payout ratio	n/a				22.58	%	n/a				23.27	%	n/a
	Average common shares outstanding		4,041,393			4,070,721			4,088,824			4,094,360			4,132,218
Balance sheet - average balances:
	Loans receivable, net of allowances for credit loss	$	1,111,055		$	1,111,004		$	1,091,533		$	1,064,619		$	1,066,795
	Assets	$	1,510,272		$	1,480,851		$	1,462,862		$	1,479,812		$	1,445,613
	Deposits	$	1,191,002		$	1,142,279		$	1,140,397		$	1,151,450		$	1,110,854
	Stockholders' equity	$	125,342		$	123,077		$	118,576		$	118,396		$	114,458
Performance ratios:
	Return on average assets (1)		0.95	%		1.02	%		0.71	%		0.84	%		0.82	%
	Return on average common stockholders' equity (1)		11.69	%		12.61	%		8.88	%		10.75	%		10.63	%
	Return on average tangible common
	stockholders' equity (1)(4)		12.14	%		13.11	%		9.21	%		11.07	%		10.96	%
	Net loan charge-offs to average loans (1)		0.00	%		0.00	%		0.02	%		0.02	%		0.00	%
	Nonperforming loans to gross loans		1.51	%		1.39	%		1.15	%		0.95	%		0.97	%
	Nonperforming assets to total assets		1.13	%		1.04	%		0.89	%		0.71	%		0.71	%
	Allowance for credit losses to gross loans		1.12	%		1.12	%		1.12	%		1.13	%		1.18	%
	Nonperforming assets to tangible equity
	plus the allowance for credit losses (4)		13.17	%		12.64	%		10.71	%		8.85	%		8.71	%
	Net interest rate margin (1)(2)		3.16	%		3.09	%		3.03	%		2.96	%		2.90	%
	Net interest rate spread (1)(2)		2.42	%		2.34	%		2.33	%		2.23	%		2.16	%
	Service fee revenue as a percent of
	average demand deposits (1)		0.52	%		0.54	%		0.58	%		0.53	%		0.56	%
	Noninterest income as a percent
	of gross revenue		8.94	%		9.98	%		9.26	%		6.40	%		9.20	%
	Efficiency ratio (2)		65.47	%		63.00	%		72.88	%		67.59	%		68.43	%
	Noninterest expenses to average assets (1)		2.31	%		2.22	%		2.49	%		2.15	%		2.24	%
	Average stockholders' equity less accumulated
	other comprehensive income (loss) to
	average assets		9.20	%		9.31	%		9.22	%		9.08	%		9.06	%
	Tangible equity to tangible assets (4)		8.34	%		7.95	%		8.05	%		7.76	%		7.85	%
Stock price information:
	High	$	26.00		$	25.70		$	26.50		$	27.90		$	25.00
	Low	$	23.30		$	23.65		$	25.60		$	25.00		$	20.30
	Last trade value at quarter-end	$	25.50		$	23.89		$	25.70		$	26.50		$	25.00
(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
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(dollars in thousands - unaudited)		2025			2025			2025			2024			2024
Net income	$	3,603		$	3,766		$	2,562		$	3,127		$	2,988
Other comprehensive income, net of tax:
Unrealized gain (loss) on securities available
for sale		1,550			972			2,551			(3,955	)		4,738
Reclassification adjustment for security
loss included in net income		-			-			1			404			-
Accretion of unrealized loss included in net
income on securities available for sale
deferred tax adjustment for Wisconsin
Act 19		(26	)		(35	)		-			(76	)		-
Amortization of unrealized loss included in net
income on securities available for sale
transferred to securities held to maturity		90			91			89			90			90
Unrealized gain (loss) on interest rate swap		(2	)		(87	)		(6	)		65			(101	)
Reclassification adjustment of interest rate
swap settlements included in earnings		(15	)		(13	)		(13	)		(27	)		(38	)
Other comprehensive income (loss)		1,597			928			2,622			(3,499	)		4,689
Comprehensive income (loss)	$	5,200		$	4,694		$	5,184		$	(372	)	$	7,677

PSB Holdings, Inc.
Nonperforming Assets as of:
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
(dollars in thousands)		2025			2025			2025			2024			2024
Nonaccrual loans (excluding restructured loans)	$	16,560		$	15,333		$	12,404		$	10,109		$	10,116
Nonaccrual restructured loans		10			13			17			18			25
Restructured loans not on nonaccrual		415			295			280			286			292
Accruing loans past due 90 days or more		-			-			-			-			-
Total nonperforming loans		16,985			15,641			12,701			10,413			10,433
Other real estate owned		-			-			300			-			-
Total nonperforming assets	$	16,985		$	15,641		$	13,001		$	10,413		$	10,433
Nonperforming loans as a % of gross loans receivable		1.51	%		1.39	%		1.15	%		0.95	%		0.97	%
Total nonperforming assets as a % of total assets		1.13	%		1.04	%		0.89	%		0.71	%		0.71	%
Allowance for credit losses as a % of nonperforming loans		74.69	%		80.26	%		97.57	%		118.52	%		120.75	%

PSB Holdings, Inc.
Nonperforming Assets >= $500,000 net book value before specific reserves
At September 30, 2025
(dollars in thousands)
		Gross			Specific
Collateral Description	Asset Type	Principal			Reserves
Real estate - Non-Owner Occupied Rental Properties	Nonaccrual		4,227			0
Real estate - Recreational Facility	Nonaccrual		3,821			140
Real estate - Equipment Dealership	Nonaccrual		2,295			558
Real estate - Wood Products	Nonaccrual		1,698			262
Real estate - Non-Owner Occupied Commercial Building	Nonaccrual		1,269			418
Total listed nonperforming assets		$	13,310		$	1,378
Total bank wide nonperforming assets		$	16,985		$	1,778
Listed assets as a % of total nonperforming assets			78	%		78	%

PSB Holdings, Inc.
Loan Composition by Collateral Type
Quarter-ended (dollars in thousands)	Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Sep 30, 2024
Commercial:
Commercial and industrial	$	137,199		$	135,313		$	124,074		$	116,864		$	115,234
Agriculture		12,443			13,219			11,632			11,568			11,203
Municipal		8,361			12,805			12,878			15,733			12,596
Total Commercial		158,003			161,337			148,584			144,165			139,033
Commercial Real Estate:
Commercial real estate		569,382			566,526			562,901			551,641			541,577
Construction and development		81,278			77,905			87,080			79,377			60,952
Total Commercial Real Estate		650,660			644,431			649,981			631,018			602,529
Residential real estate:
Residential		263,791			266,203			268,490			271,643			269,954
Construction and development		37,475			31,439			26,884			28,959			34,655
HELOC		41,661			39,425			38,364			36,887			36,734
Total Residential Real Estate		342,927			337,067			333,738			337,489			341,343
Consumer installment		4,801			4,886			4,683			5,060			4,770
Subtotals - Gross loans		1,156,391			1,147,721			1,136,986			1,117,732			1,087,675
Loans in process of disbursement		(29,170	)		(26,496	)		(28,752	)		(27,791	)		(17,836	)
Subtotals - Disbursed loans		1,127,221			1,121,225			1,108,234			1,089,941			1,069,839
Net deferred loan costs		602			624			580			605			733
Allowance for credit losses		(12,686	)		(12,553	)		(12,392	)		(12,342	)		(12,598	)
Total loans receivable	$	1,115,137		$	1,109,296		$	1,096,422		$	1,078,204		$	1,057,974

PSB Holdings, Inc.
Selected Commercial Real Estate Loans by Purpose
	Sept 30,					Jun 30,					Mar 31,					Dec 31,					Sept 30,
(dollars in thousands)		2025					2025					2025					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	$	141,896	13.5	%		$	145,523	14.0	%		$	143,674	13.9	%		$	140,087	14.0	%		$	140,307	14.7	%
Industrial and Warehousing		100,712	9.6				105,256	10.2				109,366	10.6				103,794	10.4				96,995	10.2
Retail		27,889	2.7				29,407	2.8				29,285	2.8				23,438	2.3				25,263	2.7
Hotels		25,677	2.4				25,299	2.4				25,719	2.5				25,892	2.6				26,057	2.7
Office		7,176	0.7				7,131	0.7				7,254	0.7				6,234	0.6				6,378	0.7
(1) Percentage of commercial and commercial real estate portfolio and commitments.

PSB Holdings, Inc.
Deposit Composition
Insured and Collateralized Deposits	September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)		2025				2025				2025				2024				2024
	$		%		$		%		$		%		$		%		$		%
Non-interest bearing demand	$	227,448	19.1	%	$	225,921	19.2	%	$	206,562	18.3	%	$	204,167	17.8	%	$	210,534	18.5	%
Interest-bearing demand and savings		307,505	25.8	%		304,779	25.9	%		314,957	27.9	%		315,900	27.6	%		305,631	26.8	%
Money market deposits		158,455	13.3	%		148,556	12.6	%		144,496	12.7	%		141,024	12.3	%		138,376	12.2	%
Retail and local time deposits <= $250		163,446	13.7	%		165,368	14.0	%		158,066	14.0	%		155,099	13.5	%		155,988	13.7	%
Total core deposits		856,854	71.9	%		844,624	71.7	%		824,081	72.9	%		816,190	71.2	%		810,529	71.2	%
Retail and local time deposits > $250		29,000	2.5	%		28,000	2.4	%		26,750	2.3	%		25,500	2.2	%		23,500	2.1	%
Broker & national time deposits <= $250		748	0.1	%		748	0.1	%		1,241	0.1	%		1,241	0.1	%		1,241	0.1	%
Broker & national time deposits > $250		67,493	5.7	%		65,917	5.6	%		79,090	7.0	%		56,164	4.9	%		56,164	4.9	%
Totals	$	954,095	80.2	%	$	939,289	79.8	%	$	931,162	82.3	%	$	899,095	78.4	%	$	891,434	78.3	%
PSB Holdings, Inc.
Deposit Composition
Uninsured Deposits	September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)		2025				2025				2025				2024				2024
	$		%		$		%		$		%		$		%		$		%
Non-interest bearing demand	$	51,167	4.3	%	$	51,318	4.4	%	$	39,110	3.5	%	$	55,348	4.8	%	$	54,544	4.8	%
Interest-bearing demand and savings		18,644	1.6	%		17,983	1.5	%		17,262	1.5	%		20,934	1.8	%		18,317	1.6	%
Money market deposits		117,184	9.9	%		122,603	10.4	%		123,773	11.0	%		153,334	13.4	%		157,489	13.8	%
Retail and local time deposits <= $250		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%
Total core deposits		186,995	15.8	%		191,904	16.3	%		180,145	16.0	%		229,616	20.0	%		230,350	20.2	%
Retail and local time deposits > $250		48,096	4.0	%		46,349	3.9	%		18,729	1.7	%		18,638	1.6	%		17,329	1.5	%
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	$	235,091	19.8	%	$	238,253	20.2	%	$	198,874	17.7	%	$	248,254	21.6	%	$	247,679	21.7	%
PSB Holdings, Inc.
Deposit Composition
Total Deposits	September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)		2025				2025				2025				2024				2024
	$		%		$		%		$		%		$		%		$		%
Non-interest bearing demand	$	278,615	23.4	%	$	277,239	23.6	%	$	245,672	21.8	%	$	259,515	22.6	%	$	265,078	23.3	%
Interest-bearing demand and savings		326,149	27.4	%		322,762	27.4	%		332,219	29.4	%		336,834	29.4	%		323,948	28.4	%
Money market deposits		275,639	23.2	%		271,159	23.0	%		268,269	23.7	%		294,358	25.7	%		295,865	26.0	%
Retail and local time deposits <= $250		163,446	13.7	%		165,368	14.0	%		158,066	14.0	%		155,099	13.5	%		155,988	13.7	%
Total core deposits		1,043,849	87.7	%		1,036,528	88.0	%		1,004,226	88.9	%		1,045,806	91.2	%		1,040,879	91.4	%
Retail and local time deposits > $250		77,096	6.5	%		74,349	6.3	%		45,479	4.0	%		44,138	3.8	%		40,829	3.6	%
Broker & national time deposits <= $250		748	0.1	%		748	0.1	%		1,241	0.1	%		1,241	0.1	%		1,241	0.1	%
Broker & national time deposits > $250		67,493	5.7	%		65,917	5.6	%		79,090	7.0	%		56,164	4.9	%		56,164	4.9	%
Totals	$	1,189,186	100.0	%	$	1,177,542	100.0	%	$	1,130,036	100.0	%	$	1,147,349	100.0	%	$	1,139,113	100.0	%

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
	Quarter ended September 30, 2025								Quarter ended June 30, 2025								Quarter ended September 30, 2024
	Average					Yield /			Average					Yield /			Average					Yield /
	Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,123,665		$	16,796	5.93	%		$	1,123,460		$	16,558	5.91	%		$	1,079,393		$	15,674	5.78	%
Taxable securities		193,277			1,645	3.38	%			193,926			1,566	3.24	%			177,520			1,345	3.01	%
Tax-exempt securities (2)		75,419			633	3.33	%			76,774			641	3.35	%			79,472			661	3.31	%
FHLB stock		9,182			201	8.68	%			9,189			166	7.25	%			8,825			176	7.93	%
Other		45,649			516	4.48	%			14,571			166	4.57	%			36,680			523	5.67	%
Total (2)		1,447,192			19,791	5.43	%			1,417,920			19,097	5.40	%			1,381,890			18,379	5.29	%
Non-interest-earning assets:
Cash and due from banks		16,122								15,498								17,162
Premises and equipment,
net		13,377								13,527								14,216
Cash surrender value ins		25,130								24,960								24,458
Other assets		21,061								21,402								20,485
Allowance for credit
losses		(12,610	)							(12,456	)							(12,598	)
Total	$	1,510,272							$	1,480,851							$	1,445,613
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand
deposits	$	320,732		$	1,428	1.77	%		$	315,978		$	1,450	1.84	%		$	323,841		$	1,515	1.86	%
Money market deposits		281,189			1,746	2.46	%			262,015			1,572	2.41	%			277,884			1,876	2.69	%
Time deposits		310,441			3,033	3.88	%			294,750			2,912	3.96	%			247,296			2,514	4.04	%
FHLB borrowings		154,211			1,707	4.39	%			173,080			1,899	4.40	%			182,414			2,038	4.44	%
Other borrowings		6,280			45	2.84	%			8,843			48	2.18	%			6,702			57	3.38	%
Senior sub. notes		4,785			59	4.89	%			4,784			58	4.86	%			4,779			59	4.91	%
Junior sub. debentures		13,088			247	7.49	%			13,062			250	7.68	%			12,985			252	7.72	%
Total		1,090,726			8,265	3.01	%			1,072,512			8,189	3.06	%			1,055,901			8,311	3.13	%
Non-interest-bearing liabilities:
Demand deposits		278,640								269,536								261,833
Other liabilities		15,564								15,726								13,421
Stockholders' equity		125,342								123,077								114,458
Total	$	1,510,272							$	1,480,851							$	1,445,613
Net interest income				$	11,526							$	10,908							$	10,068
Rate spread						2.42	%							2.34	%							2.16	%
Net yield on interest-earning assets						3.16	%							3.09	%							2.90	%
(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)
	Nine months ended September 30, 2025								Nine months ended September 30, 2024
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,117,079		$	49,183	5.89	%		$	1,091,366		$	46,393	5.68	%
Taxable securities		195,191			4,852	3.32	%			173,971			3,837	2.95	%
Tax-exempt securities (2)		77,144			1,928	3.34	%			79,822			1,986	3.32	%
FHLB stock		9,067			608	8.97	%			7,755			523	9.01	%
Other		23,193			786	4.53	%			18,804			784	5.57	%
Total (2)		1,421,674			57,357	5.39	%			1,371,718			53,523	5.21	%
Non-interest-earning assets:
Cash and due from banks		15,970								17,291
Premises and equipment,
net		13,543								13,778
Cash surrender value ins		24,963								24,301
Other assets		21,161								21,146
Allowance for credit
losses		(12,477	)							(12,496	)
Total	$	1,484,834							$	1,435,738
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand
deposits	$	325,470		$	4,445	1.83	%		$	335,317		$	4,654	1.85	%
Money market deposits		274,520			5,003	2.44	%			274,405			5,608	2.73	%
Time deposits		291,490			8,577	3.93	%			256,287			7,563	3.94	%
FHLB borrowings		164,047			5,398	4.40	%			166,703			5,348	4.29	%
Other borrowings		7,148			140	2.62	%			7,373			175	3.17	%
Senior sub. notes		4,784			176	4.92	%			4,778			176	4.92	%
Junior sub. debentures		13,062			745	7.63	%			12,972			758	7.81	%
Total		1,080,521			24,484	3.03	%			1,057,835			24,282	3.07	%
Non-interest-bearing liabilities:
Demand deposits		266,566								254,134
Other liabilities		15,358								12,720
Stockholders' equity		122,389								111,049
Total	$	1,484,834							$	1,435,738
Net interest income				$	32,873							$	29,241
Rate spread						2.36	%							2.14	%
Net yield on interest-earning assets						3.09	%							2.85	%
(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%.

FAQ

What did PSBQ report for EPS and net income in Q3 2025?

PSBQ reported EPS $0.86 and net income $3.5 million for Q3 2025.

How did PSBQ's net interest margin and net interest income change in Q3 2025?

Net interest income rose to $11.3 million and net interest margin improved to 3.16% in Q3 2025.

What is PSBQ's tangible book value per share at September 30, 2025?

Tangible book value per common share was $29.05 at September 30, 2025, up 10.0% year-over-year.

What material asset-quality issues did PSBQ disclose for Q3 2025?

Non-performing assets were $17.0 million (1.13% of assets); one commercial loan has a collateral shortfall and may be liquidated if not refinanced.

How large were PSBQ's deposits and loan balances at September 30, 2025?

Total deposits were $1.19 billion and net loans were approximately $1.12 billion at September 30, 2025.