PSB Holdings, Inc. Reports Quarterly Earnings of $0.94 Per Share

Lower funding costs and expenses supported earnings, while credit-loss provisions increased and net loans declined sequentially.

Rhea-AI Summary

PSB Holdings (PSBQ) reported diluted earnings of $0.94 per share for the quarter ended September 30, 2026, up sequentially and year over year. Net income was $3.8 million, versus $3.3 million in the prior quarter and $3.5 million a year earlier. Net interest income rose to $12.5 million, with net interest margin reaching 3.48%, while noninterest expenses declined sequentially to $9.0 million.

Credit-loss provisions increased to $725,000 from $325,000 in the prior quarter. Deposits rose to $1.21 billion, while net loans declined to $1.12 billion. Tangible book value was $30.99 per share, down sequentially but above $29.05 a year earlier. All required shareholder and regulatory approvals for the Bank First acquisition have been received. PSB expects closing on December 4, 2026; shareholders are entitled to 0.3470 Bank First shares per PSB share under the agreement.

17 points · 1 major

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0 major · 14 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Merger consideration is 0.3470 Bank First shares per PSB share, valued at approximately $202.9 million using May 18, 2026 pricing. 99% of market cap
• Moderate pointDiluted EPS of $0.94 exceeded $0.81 in the prior quarter and $0.86 a year earlier.
• Moderate pointNet income of $3.8 million exceeded $3.3 million sequentially and $3.5 million a year earlier.
• Moderate pointNet interest income reached $12.5 million, versus $12.1 million sequentially and $11.3 million a year earlier.
• Moderate pointNet interest margin reached 3.48%, versus 3.44% sequentially and 3.16% a year earlier.
• Moderate pointDeposits increased $34.8 million sequentially to $1.21 billion at September 30, 2026.
• Moderate pointCash and cash equivalents increased to $84.8 million from $57.7 million at June 30, 2026.
• Moderate pointFHLB advances decreased $23.0 million to $128.5 million at September 30, 2026.
• Moderate pointReturn on average tangible common equity reached 11.98%, versus 10.62% sequentially and 12.14% a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Bank First acquisition approvals received; PSB expects closing December 4, 2026.

7 minor points

• Minor pointFunding costs fell to 2.81% from 2.86% in the prior quarter.
• Minor pointNoninterest expenses fell to $9.0 million from $9.7 million sequentially, but exceeded $8.8 million a year earlier.
• Minor pointCore deposits increased $58.6 million and brokered deposits decreased $20.0 million during the third quarter.
• Minor pointOther borrowings fell to zero from $2.447 million at June 30, 2026.
• Minor pointNon-performing assets fell to 1.02% of total assets from 1.08% in the prior quarter.
• Minor pointCommercial real estate loans increased $13.8 million sequentially to $603.8 million.
• Minor pointTangible book value of $30.99 per share exceeded $29.05 a year earlier but fell from $31.27 sequentially.

Negative

• Moderate pointCredit-loss provisions rose to $725,000 from $325,000 sequentially and $138,000 a year earlier.
• Moderate pointA $1.1 million charge-off on one non-accruing equipment dealership loan contributed to elevated third-quarter charge-offs.
• Moderate pointAccumulated other comprehensive loss increased to $17.3 million, versus $13.0 million sequentially and $14.2 million a year earlier.
• Minor pointApproximately 69% of non-performing assets consisted of five lending relationships.
• Minor pointNet loans declined to $1.12 billion from $1.13 billion at June 30, 2026.

9 minor points

• Minor pointConstruction and development loans decreased $14.7 million sequentially to $53.4 million.
• Minor pointCommercial and industrial loans decreased $8.0 million sequentially to $149.9 million.
• Minor pointResidential real estate loans decreased $3.1 million sequentially to $328.5 million.
• Minor pointNoninterest income decreased $92,000 sequentially to $2.0 million, partly reflecting lower mortgage banking income.
• Minor pointLoan yields declined to 6.10% from 6.13% in the prior quarter.
• Minor pointTaxable securities yields declined to 3.12% from 3.22% in the prior quarter.
• Minor pointTax-exempt securities yields declined to 3.33% from 3.34% in the prior quarter.
• Minor pointTangible equity to tangible assets fell to 8.76%, versus 8.87% sequentially and 8.34% a year earlier.
• Minor pointIncome taxes increased $58,000 sequentially to $892,000 in the third quarter.

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WAUSAU, Wis., Oct. 26, 2026 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported earnings for the second quarter ending September 30, 2026 of $0.94 per diluted common share on net income of $3.8 million, compared to $0.81 per diluted common share on net income of $3.3 million during the second quarter ending June 30, 2026, and $0.86 per diluted common share on net income of $3.5 million during the third quarter ending September 30, 2025.

PSB’s third quarter of 2026 operating results reflected the following changes from the second quarter of 2026: (1) an increase in net interest margin due primarily to lower costing funds; (2) higher provision for credit losses on loans; (3) slightly lower non-interest income; (4) lower non-interest expenses due to a decrease in salary and employee benefits from fewer employees; and (5) slightly lower expenses associated with the merger.

PSB announced on May 19, 2026 that it entered into an Agreement and Plan of Merger with Bank First Corporation (“Bank First”), under which Bank First will acquire 100% of the common stock of PSB in an all-stock transaction. Under the terms of the Agreement and Plan of Merger, each PSB shareholder will have the right to receive 0.3470 of a share of Bank First’s common stock in exchange for each share of PSB’s common stock. The aggregate consideration is valued at approximately $202.9 million, based on the closing price of Bank First common stock as of May 18, 2026, of $143.66 per share.

“We delivered strong third quarter earnings, supported by an improved net interest margin and additional efficiencies we gained in preparation for our merger with Bank First. We remain on track for closing the merger on December 4, 2026, and have received all required shareholder and regulatory approvals,” stated Scott Cattanach, President and CEO.

September 30, 2026, Highlights:

• Net interest income increased $348,000 to $12.5 million for the quarter ended September 30, 2026, from $12.1 million for the quarter ended June 30, 2026, due in part to higher average loan balances and lower costs on time deposits.

• Noninterest income decreased $92,000 to $2.0 million for the quarter ended September 30, 2026, compared to $2.1 million the prior quarter, partially due to lower mortgage banking income.

• Noninterest expenses decreased $745,000 to $9.0 million during the quarter ended September 30, 2026 from $9.7 million for the quarter ended June 30, 2026, reflecting lower salary and benefit plan expenses related to lower incentive accruals for fiscal 2026 and staff reductions. Merger expenses were $592,000 for the third quarter ending September 30, 2026 compared to $671,000 for the quarter ended June 30, 2026. The third quarter ended September 30, 2026 reflects severance expenses totaling $423,000.

• Net loans decreased $10 million in the third quarter ended September 30, 2026, to $1.12 billion compared to $1.13 billion at June 30, 2026. Allowance for credit losses decreased to 1.12% of gross loans.

• Non-performing assets decreased to 1.02% of total assets at September 30, 2026, compared to 1.08% the previous quarter.

• Total deposits increased $34.8 million to $1.21 billion at September 30, 2026, from $1.18 billion at June 30, 2026. Core deposits increased $58.6 million and brokered deposits decreased $20.0 million.

• Return on average tangible common equity was 11.98% for the quarter ended September 30, 2026 compared to 10.62% the prior quarter and 12.14% in the year ago quarter. Tangible book value per common share was up 6.68% over the past year to $30.99 at September 30, 2026, compared to $29.05 at September 30, 2025.
  
  

Balance Sheet and Asset Quality Review

Total assets increased $5.91 million during the third quarter to $1.51 billion at September 30, 2026. Cash and cash equivalents increased $27.11 million to $84.8 million at September 30, 2026, from $57.7 million at June 30, 2026, as funds from new deposits were held in liquid investments. Investment securities available for sale decreased $12.3 million to $152.7 million at September 30, 2026, from $165.0 million one quarter earlier.

Gross loans receivable decreased $11.9 million to $1.16 billion at September 30, 2026, compared to three months earlier. Construction and development loans decreased $14.7 million to $53.4 million at September 30, 2026 and commercial & industrial loans decreased $8.0 million to $149.9 million over the three month period. Residential real estate loans decreased $3.1 million from the prior quarter to $328.5 million. Partially offsetting these loan decreases, commercial real estate loans increased $13.8 million to $603.8 million at September 30, 2026, compared to three months earlier. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 56.8% of gross loans, followed by residential real estate loans at 28.4% of gross loans, commercial non-real estate loans at 14.3% and consumer loans at 0.5%.

The allowance for credit losses decreased to 1.12% of gross loans at September 30, 2026 while annualized net charge-offs to average loans were 0.53% for the quarter ended September 30, 2026. The elevated charge-offs for the quarter ended September 30, 2026 relates to a charge-off of $1.1 million on one non-accruing equipment dealership loan. Non-performing assets decreased to 1.02% of total assets at September 30, 2026, down from 1.08% at June 30, 2026. Approximately 69% of all non-performing assets consisted of five lending relationships.

Total deposits increased $34.8 million from the prior quarter to $1.21 billion. Growth in deposits was led by interest-bearing demand and savings deposits, which increased $33.0 million during the third quarter followed by an increase in non-interest bearing demand deposits of $24.8 million and an increase in money market deposits of $8.6 million during the third quarter. Partially offsetting the increase in these core deposits was a decline in retail time and local deposits of $11.5 million and a decline in brokered deposits of $20.0 million.

FHLB advances decreased by $23.0 million to $128.5 million at September 30, 2026 from $151.5 million at June 30, 2026.

Tangible stockholder equity as a percentage of total tangible assets was 8.76% at September 30, 2026, compared to 8.87% at June 30, 2026, and 8.34% at September 30, 2025, respectively.

Tangible net book value per common share increased $1.94 to $30.99 at September 30, 2026, compared to $29.05 one year earlier, an increase of 6.7% after dividends totaling $0.88 per share were paid to shareholders. Relative to the prior quarter’s tangible book value per common share of $31.27, tangible net book value per common share decreased primarily due to an increase in accumulated other comprehensive losses related to rising interest rates and the payment of dividends offset by earnings. The accumulated other comprehensive loss on the investment portfolio increased to $17.3 million at September 30, 2026 compared to $13.0 million one quarter earlier and $14.2 million at September 30, 2025.

Operations Review

Net interest income increased to $12.5 million (on a net margin of 3.48%) for the third quarter of 2026, from $12.1 million (on a net margin of 3.44%) for the second quarter of 2026, and increased from $11.3 million (on a net margin of 3.16%) for the third quarter of 2025. Higher net interest income in the current period primarily relates to a decrease in funding costs during the third quarter.

Overall funding costs decreased 5 basis points to 2.81% during the third quarter of 2026 from 2.86% the prior period. Relative to one year earlier, funding costs were down 20 basis points while yields on assets increased 11 basis points. The decrease in funding costs was due to lower deposit costs and lower costs related to FHLB advances. Deposits costs decreased 8 basis points to 1.92% for the quarter ended September 30, 2026, from 2.00% the prior quarter. FHLB advance costs declined 2 basis points to 4.04% for the second quarter from 4.06% the prior quarter.

Overall earning-asset yields declined during the current quarter due to lower yields on loans and investment securities. Loan yields declined 3 basis points to 6.10% for the quarter ended September 30, 2026 from 6.13% the prior quarter. Taxable security yields were 3.12% for the quarter ended September 30, 2026, compared to 3.22% for the quarter ended June 30, 2026, while a smaller balance of tax-exempt security yields decreased to 3.33% for the quarter ended September 30, 2026 from 3.34% the prior quarter.

Total noninterest income decreased $92,000 during the third quarter of 2026 to $2.0 million from $2.1 million in the second quarter. The third quarter reflects increases in investment and insurance sales commissions that are offset by a decline in mortgage banking income.

Noninterest expenses decreased $0.7 million to $9.0 million for the third quarter of 2026, compared to $9.7 million for the second quarter, and increased $0.1 million from $8.8 million for the third quarter of 2025. The third quarter noninterest expense levels were lower than the prior quarter due to slightly lower expenses associated with the merger which include severance payments and professional fees. Salary and benefits expenses decreased $548,000 due to lower incentive accruals and staff reductions.

Income taxes increased $58,000 during the third quarter to $892,000 from $834,000 one quarter earlier. The effective tax rate for the quarter ended September 30, 2026 was 18.5% compared to 19.7% for the second quarter ended June 30, 2026 and 16.7% for the third quarter ended September 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, and March 31, 2026, and September 30, 2025, unaudited, December 31, 2025 derived from audited financial statements
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(dollars in thousands, except per share data)		2026			2026			2026			2025			2025
Assets
Cash and due from banks	$	14,359		$	17,321		$	28,053		$	19,697		$	14,221
Interest-bearing deposits		2,324			3,283			1,703			2,262			3,630
Federal funds sold		68,099			37,073			29,755			7,916			19,641
Cash and cash equivalents		84,782			57,677			59,511			29,875			37,492
Securities available for sale (at fair value)		152,671			165,006			171,107			184,265			190,709
Securities held to maturity (fair values of $64,537, $71,765, $72,485, $76,671 and $76,104 respectively)		76,362			76,718			78,826			81,511			82,195
Equity securities		2,922			2,913			2,904			2,892			2,885
Loans held for sale		1,598			-			652			180			145
Loans receivable, net (allowance for credit losses of $12,675, $13,447, $13,131, $12,605 and $12,686 respectively)		1,123,604			1,134,370			1,116,089			1,096,035			1,115,137
Accrued interest receivable		4,779			4,885			5,094			5,035			5,023
Foreclosed assets		137			138			-			-			-
Premises and equipment, net		12,605			12,887			13,160			12,972			13,355
Mortgage servicing rights, net		1,980			1,974			1,978			1,689			1,685
Federal Home Loan Bank stock (at cost)		8,424			8,374			7,995			8,090			8,641
Cash surrender value of bank-owned life insurance		24,322			24,139			24,453			25,425			25,242
Core deposit intangible		229			247			266			287			309
Goodwill		3,565			3,565			3,565			3,495			3,495
Other assets		10,549			9,725			9,784			9,721			10,420
TOTAL ASSETS	$	1,508,529		$	1,502,618		$	1,495,384		$	1,461,472		$	1,496,733
Liabilities
Non-interest-bearing deposits	$	315,361		$	290,604		$	281,947		$	278,302		$	278,615
Interest-bearing deposits		897,616			887,579			905,082			898,729			910,571
Total deposits		1,212,977			1,178,183			1,187,029			1,177,031			1,189,186
Federal Home Loan Bank advances		128,450			151,450			136,950			112,950			140,950
Other borrowings		-			2,447			4,119			5,397			6,062
Senior subordinated notes		4,793			4,791			4,789			4,788			4,786
Junior subordinated debentures		13,202			13,177			13,151			13,126			13,100
Allowance for credit losses on unfunded commitments		492			492			492			542			622
Accrued expenses and other liabilities		12,971			15,323			14,986			15,967			13,651
Total liabilities		1,372,885			1,365,863			1,361,516			1,329,801			1,368,357
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 - 4,022,731, 4,021,558, 4,020,508, 4,023,874 and 4,040,538 shares, respectively		1,830			1,830			1,830			1,830			1,830
Additional paid-in capital		8,854			8,801			8,732			8,727			8,707
Retained earnings		158,798			155,700			153,146			150,556			148,029
Accumulated other comprehensive income (loss), net of tax		(17,297	)		(13,016	)		(13,264	)		(13,000	)		(14,166	)
Treasury stock, at cost - 1,468,067, 1,469,240, 1,470,290, 1,466,924 and 1,450,260 shares, respectively		(23,741	)		(23,760	)		(23,776	)		(23,642	)		(23,224	)
Total stockholders' equity		135,644			136,755			133,868			131,671			128,376
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,508,529		$	1,502,618		$	1,495,384		$	1,461,472		$	1,496,733

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)		2026			2026			2026			2025			2025				2026			2025
Interest and dividend income:
Loans, including fees	$	17,517		$	17,370		$	17,066		$	16,744		$	16,745			$	51,953		$	49,037
Securities:
Taxable		1,343			1,428			1,586			1,659			1,645				4,357			4,852
Tax-exempt		459			467			484			495			500				1,410			1,523
Other interest and dividends		664			508			316			582			717				1,488			1,394
Total interest and dividend income		19,983			19,773			19,452			19,480			19,607				59,208			56,806
Interest expense:
Deposits		5,735			5,836			5,898			5,976			6,207				17,469			18,025
FHLB advances		1,429			1,478			1,344			1,428			1,707				4,251			5,398
Other borrowings		21			13			25			40			45				59			140
Senior subordinated notes		59			58			59			59			59				176			176
Junior subordinated debentures		248			245			242			248			247				735			745
Total interest expense		7,492			7,630			7,568			7,751			8,265				22,690			24,484
Net interest income		12,491			12,143			11,884			11,729			11,342				36,518			32,322
Provision for credit losses		725			325			475			275			138				1,525			365
Net interest income after provision for credit losses		11,766			11,818			11,409			11,454			11,204				34,993			31,957
Noninterest income:
Service fees		436			424			393			401			363				1,253			1,087
Mortgage banking income		354			427			405			413			363				1,186			1,024
Investment and insurance sales commissions		435			382			437			520			345				1,254			1,006
Net loss on sale of securities		-			-			(502	)		-			-				(502	)		(1	)
Increase in cash surrender value of life insurance		183			178			175			182			176				536			509
Life insurance death benefit		-			4			489			-			-				493			-
Other noninterest income		620			705			923			565			678				2,248			2,262
Total noninterest income		2,028			2,120			2,320			2,081			1,925				6,468			5,887
Noninterest expense:
Salaries and employee benefits		5,059			5,607			5,948			5,159			5,446				16,614			15,576
Occupancy and facilities		689			697			800			712			712				2,186			2,217
Loss (gain) on foreclosed assets		9			(1	)		(36	)		(23	)		1				(28	)		(57	)
Data processing and other office operations		1,054			1,129			1,119			1,188			1,122				3,302			3,512
Advertising and promotion		161			227			189			177			138				577			456
Core deposit intangible amortization		18			19			21			21			22				58			68
Expenses associated with merger		592			671			120			26			-				1,383			26
Other noninterest expenses		1,377			1,355			1,637			1,376			1,365				4,369			4,170
Total noninterest expense		8,959			9,704			9,798			8,636			8,806				28,461			25,968
Income before provision for income taxes		4,835			4,234			3,931			4,899			4,323				13,000			11,876
Provision for income taxes		892			834			495			883			720				2,221			1,945
Net income	$	3,943		$	3,400		$	3,436		$	4,016		$	3,603			$	10,779		$	9,931
Preferred stock dividends declared	$	122		$	122		$	122		$	122		$	122			$	366		$	366
Net income available to common shareholders	$	3,821		$	3,278		$	3,314		$	3,894		$	3,481			$	10,413		$	9,565
Basic earnings per common share	$	0.95		$	0.82		$	0.82		$	0.97		$	0.86			$	2.59		$	2.35
Diluted earnings per common share	$	0.94		$	0.81		$	0.82		$	0.97		$	0.86			$	2.57		$	2.35

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:		2026			2026			2026			2025			2025
Interest income	$	19,983		$	19,773		$	19,452		$	19,480		$	19,607
Interest expense	$	7,492		$	7,630		$	7,568		$	7,751		$	8,265
Net interest income	$	12,491		$	12,143		$	11,884		$	11,729		$	11,342
Provision for credit losses	$	725		$	325		$	475		$	275		$	138
Other noninterest income	$	2,028		$	2,120		$	2,320		$	2,081		$	1,925
Other noninterest expense	$	8,959		$	9,704		$	9,798		$	8,636		$	8,806
Net income available to common shareholders	$	3,821		$	3,278		$	3,314		$	3,894		$	3,481
Basic earnings per common share (3)	$	0.95		$	0.82		$	0.82		$	0.97		$	0.86
Diluted earnings per common share (3)	$	0.94		$	0.81		$	0.82		$	0.97		$	0.86
Dividends declared per common share (3)	$	0.18		$	0.18		$	0.18		$	0.34		$	-
Tangible net book value per common share (4)	$	30.99		$	31.27		$	30.55		$	29.99		$	29.05
Average common shares outstanding		4,021,762			4,020,787			4,021,327			4,028,368			4,041,393
Balance sheet - average balances:
Loans receivable, net of allowances for credit loss	$	1,126,958		$	1,124,806		$	1,118,837		$	1,107,114		$	1,111,055
Assets	$	1,500,877		$	1,491,283		$	1,478,103		$	1,501,135		$	1,510,272
Deposits	$	1,185,147		$	1,172,036		$	1,175,510		$	1,199,363		$	1,191,002
Stockholders' equity	$	137,966		$	135,416		$	134,946		$	131,606		$	125,342
Performance ratios:
Return on average assets (1)		1.04	%		0.91	%		0.94	%		1.06	%		0.95	%
Return on average common stockholders' equity (1)		11.59	%		10.25	%		10.52	%		12.42	%		11.69	%
Return on average tangible common stockholders' equity (1)(4)		11.98	%		10.62	%		10.90	%		12.86	%		12.14	%
Net loan charge-offs to average loans (1)		0.53	%		0.00	%		0.00	%		0.16	%		0.00	%
Nonperforming loans to gross loans		1.34	%		1.40	%		1.44	%		1.56	%		1.51	%
Nonperforming assets to total assets		1.02	%		1.08	%		1.09	%		1.18	%		1.13	%
Allowance for credit losses to gross loans		1.12	%		1.17	%		1.16	%		1.14	%		1.12	%
Nonperforming assets to tangible equity plus the allowance for credit losses (4)		11.30	%		11.80	%		12.13	%		13.10	%		13.17	%
Net interest rate margin (1)(2)		3.48	%		3.44	%		3.45	%		3.28	%		3.16	%
Net interest rate spread (1)(2)		2.73	%		2.72	%		2.69	%		2.53	%		2.42	%
Service fee revenue as a percent of average demand deposits (1)		0.59	%		0.63	%		0.58	%		0.55	%		0.52	%
Noninterest income as a percent of gross revenue		9.21	%		9.68	%		10.66	%		9.65	%		8.94	%
Efficiency ratio (2)		61.10	%		67.35	%		68.24	%		61.82	%		65.47	%
Noninterest expenses to average assets (1)		2.37	%		2.61	%		2.69	%		2.28	%		2.31	%
Average stockholders' equity less accumulated other comprehensive income (loss) to average assets		10.10	%		9.87	%		9.93	%		9.59	%		9.20	%
Tangible equity to tangible assets (4)		8.76	%		8.87	%		8.72	%		8.77	%		8.34	%
Stock price information:
High	$	54.00		$	50.50		$	28.50		$	26.30		$	26.00
Low	$	49.05		$	27.20		$	26.10		$	24.34		$	23.30
Last trade value at quarter-end	$	51.21		$	50.50		$	27.74		$	26.10		$	25.50
(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)		2026			2026			2026			2025			2025
Net income	$	3,943		$	3,400		$	3,436		$	4,016		$	3,603
Other comprehensive income, net of tax:
Unrealized gain (loss) on securities available for sale		(4,525	)		118			(711	)		1,065			1,550
Reclassification adjustment for security loss included in net income		-			-			396			-			-
Accretion of unrealized loss included in net income on securities available for sale deferred tax adjustment for Wisconsin Act 19		(24	)		(32	)		(83	)		-			(26	)
Amortization of unrealized loss included in net income on securities available for sale transferred to securities held to maturity		93			93			91			90			90
Unrealized gain (loss) on interest rate swap		174			67			43			18			(2	)
Reclassification adjustment of interest rate swap settlements included in earnings		1			1			-			(7	)		(15	)
Other comprehensive income (loss)		(4,281	)		247			(264	)		1,166			1,597
Comprehensive income (loss)	$	(338	)	$	3,647		$	3,172		$	5,182		$	5,200

PSB Holdings, Inc.
Nonperforming Assets as of:
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
(dollars in thousands)		2026			2026			2026			2025			2025
Nonaccrual loans (excluding restructured loans)	$	15,071		$	15,242		$	15,438		$	16,436		$	16,560
Nonaccrual restructured loans		1			589			6			7			10
Restructured loans not on nonaccrual		139			277			863			865			415
Accruing loans past due 90 days or more		-			-			-			-			-
Total nonperforming loans		15,211			16,108			16,307			17,308			16,985
Other real estate owned		137			138			-			-			-
Total nonperforming assets	$	15,348		$	16,246		$	16,307		$	17,308		$	16,985
Nonperforming loans as a % of gross loans receivable		1.34	%		1.40	%		1.44	%		1.56	%		1.51	%
Total nonperforming assets as a % of total assets		1.02	%		1.08	%		1.09	%		1.18	%		1.13	%
Allowance for credit losses as a % of nonperforming loans		83.33	%		83.48	%		80.52	%		72.83	%		74.69	%

PSB Holdings, Inc.
Nonperforming Assets >= $1,000,000 net book value before specific reserves
At September 30, 2026
(dollars in thousands)
		Gross			Specific
Collateral Description	Asset Type	Principal			Reserves
Real estate - Non-Owner Occupied Rental Properties	Nonaccrual		2,639			-
Real estate - Recreational Facility	Nonaccrual		3,497			204
Real estate - Equipment Dealership	Nonaccrual		1,194			250
Real estate - Wood Products	Nonaccrual		1,674			376
Real estate - Commercial Building	Nonaccrual		1,627			54
Total listed nonperforming assets		$	10,631		$	884
Total bank wide nonperforming assets		$	15,348		$	1,394
Listed assets as a % of total nonperforming assets			69	%		63	%

PSB Holdings, Inc.
Loan Composition by Collateral Type
Quarter-ended (dollars in thousands)	Sep 30, 2026			Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025
Commercial:
Commercial and industrial	$	149,925		$	157,903		$	143,572		$	139,479		$	137,199
Agriculture		7,680			7,215			9,188			11,463			12,443
Municipal		8,024			8,258			8,481			11,317			8,361
Total Commercial		165,629			173,376			161,241			162,259			158,003
Commercial Real Estate:
Commercial real estate		603,778			590,027			578,655			551,899			569,382
Construction and development		53,422			68,107			70,757			70,574			81,278
Total Commercial Real Estate		657,200			658,134			649,412			622,473			650,660
Residential real estate:
Residential		250,152			253,189			251,356			259,573			263,791
Construction and development		29,394			29,744			34,540			36,596			37,475
HELOC		48,978			48,682			44,545			44,219			41,661
Total Residential Real Estate		328,524			331,615			330,441			340,388			342,927
Consumer installment		5,124			5,248			4,648			5,053			4,801
Subtotals - Gross loans		1,156,477			1,168,373			1,145,742			1,130,173			1,156,391
Loans in process of disbursement		(20,713	)		(21,149	)		(17,148	)		(22,178	)		(29,170	)
Subtotals - Disbursed loans		1,135,764			1,147,224			1,128,594			1,107,995			1,127,221
Net deferred loan costs		515			593			626			645			602
Allowance for credit losses		(12,675	)		(13,447	)		(13,131	)		(12,605	)		(12,686	)
Total loans receivable	$	1,123,604		$	1,134,370		$	1,116,089		$	1,096,035		$	1,115,137

PSB Holdings, Inc.
Selected Commercial Real Estate Loans by Purpose
	Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,
(dollars in thousands)		2026				2026				2026				2025				2025
	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	$	129,365	12.3	%	$	127,983	12.3	%	$	134,236	12.9	%	$	145,717	14.3	%	$	141,896	13.5	%
Industrial and Warehousing		119,540	11.4			120,116	11.6			119,427	11.5			101,581	9.9			100,712	9.6
Retail		28,501	2.7			28,468	2.7			27,948	2.7			27,756	2.7			27,889	2.7
Hotels		27,044	2.6			24,839	2.4			25,080	2.4			25,949	2.6			25,677	2.4
Office		3,972	0.4			4,034	0.4			4,097	0.4			7,028	0.7			7,176	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)		2026				2026				2026				2025				2025
	$		%		$		%		$		%		$		%		$		%
Non-interest bearing demand	$	231,406	19.0	%	$	226,134	19.1	%	$	221,921	18.5	%	$	225,025	19.1	%	$	227,448	19.1	%
Interest-bearing demand and savings		344,163	28.4	%		313,909	26.7	%		321,604	27.1	%		323,739	27.5	%		307,505	25.8	%
Money market deposits		142,930	11.7	%		141,443	12.0	%		146,655	12.4	%		142,946	12.1	%		158,455	13.3	%
Retail and local time deposits <= $250		146,566	12.1	%		154,330	13.1	%		157,898	13.3	%		163,398	13.9	%		163,446	13.7	%
Total core deposits		865,065	71.2	%		835,816	70.9	%		848,078	71.3	%		855,108	72.6	%		856,854	71.9	%
Retail and local time deposits > $250		24,000	2.0	%		25,250	2.1	%		26,500	2.2	%		28,000	2.4	%		29,000	2.5	%
Broker & national time deposits <= $250		748	0.1	%		748	0.1	%		748	0.1	%		748	0.1	%		748	0.1	%
Broker & national time deposits > $250		29,779	2.5	%		49,788	4.2	%		54,191	4.6	%		62,493	5.3	%		67,493	5.7	%
Totals	$	919,592	75.8	%	$	911,602	77.3	%	$	929,517	78.2	%	$	946,349	80.4	%	$	954,095	80.2	%
PSB Holdings, Inc.
Deposit Composition
Uninsured Deposits	September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)		2026				2026				2026				2025				2025
	$		%		$		%		$		%		$		%		$		%
Non-interest bearing demand	$	83,955	6.9	%	$	64,470	5.5	%	$	60,026	5.1	%	$	53,277	4.5	%	$	51,167	4.3	%
Interest-bearing demand and savings		20,817	1.7	%		18,073	1.5	%		18,533	1.6	%		17,683	1.5	%		18,644	1.6	%
Money market deposits		141,312	11.7	%		134,223	11.4	%		128,415	10.8	%		110,501	9.4	%		117,184	9.9	%
Retail and local time deposits <= $250		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%
Total core deposits		246,084	20.3	%		216,766	18.4	%		206,974	17.5	%		181,461	15.4	%		186,995	15.8	%
Retail and local time deposits > $250		47,301	3.9	%		49,815	4.3	%		50,538	4.3	%		49,221	4.2	%		48,096	4.0	%
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	$	293,385	24.2	%	$	266,581	22.7	%	$	257,512	21.8	%	$	230,682	19.6	%	$	235,091	19.8	%
PSB Holdings, Inc.
Deposit Composition
Total Deposits	September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)		2026				2026				2026				2025				2025
	$		%		$		%		$		%		$		%		$		%
Non-interest bearing demand	$	315,361	25.9	%	$	290,604	24.6	%	$	281,947	23.6	%	$	278,302	23.6	%	$	278,615	23.4	%
Interest-bearing demand and savings		364,980	30.1	%		331,982	28.2	%		340,137	28.7	%		341,422	29.0	%		326,149	27.4	%
Money market deposits		284,242	23.4	%		275,666	23.4	%		275,070	23.2	%		253,447	21.5	%		275,639	23.2	%
Retail and local time deposits <= $250		146,566	12.1	%		154,330	13.1	%		157,898	13.3	%		163,398	13.9	%		163,446	13.7	%
Total core deposits		1,111,149	91.5	%		1,052,582	89.3	%		1,055,052	88.8	%		1,036,569	88.0	%		1,043,849	87.7	%
Retail and local time deposits > $250		71,301	5.9	%		75,065	6.4	%		77,038	6.5	%		77,221	6.6	%		77,096	6.5	%
Broker & national time deposits <= $250		748	0.1	%		748	0.1	%		748	0.1	%		748	0.1	%		748	0.1	%
Broker & national time deposits > $250		29,779	2.5	%		49,788	4.2	%		54,191	4.6	%		62,493	5.3	%		67,493	5.7	%
Totals	$	1,212,977	100.0	%	$	1,178,183	100.0	%	$	1,187,029	100.0	%	$	1,177,031	100.0	%	$	1,189,186	100.0	%

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
	Quarter ended September 30, 2026								Quarter ended June 30, 2026								Quarter ended September 30, 2025
	Average					Yield /			Average					Yield /			Average					Yield /
	Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,140,312		$	17,539	6.10	%		$	1,138,074		$	17,392	6.13	%		$	1,123,665		$	16,796	5.93	%
Taxable securities		170,836			1,343	3.12	%			177,864			1,428	3.22	%			193,277			1,645	3.38	%
Tax-exempt securities (2)		69,150			581	3.33	%			70,873			591	3.34	%			75,419			633	3.33	%
FHLB stock		8,412			178	8.40	%			8,227			170	8.29	%			9,182			201	8.68	%
Other		51,497			486	3.74	%			36,217			338	3.74	%			45,649			516	4.48	%
Total (2)		1,440,207			20,127	5.54	%			1,431,255			19,919	5.58	%			1,447,192			19,791	5.43	%
Non-interest-earning assets:
Cash and due from banks		16,552								15,689								16,122
Premises and equipment, net		12,784								13,084								13,377
Cash surrender value ins		24,208								24,026								25,130
Other assets		20,480								20,508								21,061
Allowance for credit losses		(13,354	)							(13,268	)							(12,610	)
Total	$	1,500,877							$	1,491,294							$	1,510,272
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand deposits	$	350,238		$	1,549	1.75	%		$	338,948		$	1,508	1.78	%		$	320,732		$	1,428	1.77	%
Money market deposits		278,393			1,859	2.65	%			276,290			1,783	2.59	%			281,189			1,746	2.46	%
Time deposits		264,974			2,327	3.48	%			286,959			2,545	3.56	%			310,441			3,033	3.88	%
FHLB borrowings		140,488			1,429	4.04	%			145,927			1,478	4.06	%			154,211			1,707	4.39	%
Other borrowings		4,181			21	1.99	%			3,820			13	1.37	%			6,280			45	2.84	%
Senior sub. notes		4,792			59	4.88	%			4,790			58	4.86	%			4,785			59	4.89	%
Junior sub. debentures		13,190			248	7.46	%			13,164			245	7.47	%			13,088			247	7.49	%
Total		1,056,256			7,492	2.81	%			1,069,898			7,630	2.86	%			1,090,726			8,265	3.01	%
Non-interest-bearing liabilities:
Demand deposits		291,542								269,839								278,640
Other liabilities		15,113								16,141								15,564
Stockholders' equity		137,966								135,416								125,342
Total	$	1,500,877							$	1,491,294							$	1,510,272
Net interest income				$	12,635							$	12,289							$	11,526
Rate spread						2.73	%							2.72	%							2.42	%
Net yield on interest-earning assets						3.48	%							3.44	%							3.16	%
(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, 2026									Nine months ended September 30, 2025
	Average						Yield/			Average						Yield/
	Balance			Interest			Rate			Balance			Interest			Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,136,751		$	52,023		6.12	%		$	1,117,079		$	49,183		5.89	%
Taxable securities		179,407			4,357		3.25	%			195,191			4,852		3.32	%
Tax-exempt securities (2)		71,164			1,785		3.35	%			77,144			1,928		3.34	%
FHLB stock		8,146			530		8.70	%			9,067			608		8.97	%
Other		34,123			958		3.75	%			23,193			786		4.53	%
Total (2)		1,429,591			59,653		5.58	%			1,421,674			57,357		5.39	%
Non-interest-earning assets:
Cash and due from banks		15,989									15,970
Premises and equipment, net		12,941									13,543
Cash surrender value ins		24,487									24,963
Other assets		20,348									21,161
Allowance for credit losses		(13,188	)								(12,477	)
Total	$	1,490,168								$	1,484,834
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand deposits	$	344,099		$	4,624		1.80	%		$	325,470		$	4,445		1.83	%
Money market deposits		272,210			5,259		2.58	%			274,520			5,003		2.44	%
Time deposits		282,862			7,586		3.59	%			291,490			8,577		3.93	%
FHLB borrowings		138,403			4,251		4.11	%			164,047			5,398		4.40	%
Other borrowings		4,257			59		1.85	%			7,148			140		2.62	%
Senior sub. notes		4,790			176		4.91	%			4,784			176		4.92	%
Junior sub. debentures		13,164			735		7.47	%			13,062			745		7.63	%
Total		1,059,785			22,690		2.86	%			1,080,521			24,484		3.03	%
Non-interest-bearing liabilities:
Demand deposits		278,565									266,566
Other liabilities		15,875									15,358
Stockholders' equity		135,943									122,389
Total	$	1,490,168								$	1,484,834
Net interest income				$	36,963								$	32,873
Rate spread							2.72	%								2.36	%
Net yield on interest-earning assets							3.46	%								3.09	%
(1) Nonaccrual loans are included in the daily average loan balances outstanding.
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.

Investor Relations Contact
PSB Holdings, Inc.
1905 Stewart Avenue
Wausau, WI 54401
888.929.9902
InvestorRelations@bankpeoples.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were PSB Holdings' earnings for the quarter ended September 30, 2026?

PSB Holdings earned $0.94 per diluted common share on net income of $3.8 million. That compares with $0.81 per share on $3.3 million in the prior quarter and $0.86 per share on $3.5 million in the year-earlier quarter.

When does PSB Holdings expect the Bank First merger to close, and what will shareholders receive?

PSB expects the merger to close on December 4, 2026, with shareholders entitled to 0.3470 Bank First common shares for each PSB common share. All required shareholder and regulatory approvals have been received. The all-stock transaction was valued at approximately $202.9 million using Bank First's May 18, 2026 closing price of $143.66.

Why did PSB Holdings' tangible book value decline from the prior quarter?

PSB attributes the sequential decline primarily to higher accumulated other comprehensive losses related to rising interest rates and dividend payments, offset by earnings. Tangible book value decreased to $30.99 per common share at September 30, 2026, from $31.27 at June 30, 2026.