PSB Holdings, Inc. Reports Record Quarterly Earnings of $0.89 Per Diluted Share; Net Interest Margin Improves For Fifth Consecutive Quarter

Rhea-AI Summary

PSB Holdings (OTCQX: PSBQ) reported record Q2 2025 earnings of $0.89 per diluted share, a 48% increase from Q1 2025. Net income reached $3.8 million, up from $2.6 million in Q1 2025 and $2.4 million in Q2 2024.

Key highlights include: Net interest margin improvement for the fifth consecutive quarter to 3.09%, total deposits increase of $47.5 million to $1.18 billion, and net loans growth of $12.9 million to $1.11 billion. The company's tangible book value per share grew 13.1% year-over-year to $27.77 while paying $0.64 in dividends.

However, non-performing assets increased $2.6 million to $15.6 million, representing 1.04% of total assets, though management expects favorable resolutions for certain significant non-performing assets by year-end.

Positive

• Record quarterly earnings of $0.89 per diluted share, up 48% from previous quarter
• Net interest margin improved for fifth consecutive quarter to 3.09%
• Tangible book value per share increased 13.1% year-over-year to $27.77
• Total deposits increased $47.5 million to $1.18 billion
• Net loans grew $12.9 million to $1.11 billion
• Efficiency ratio improved to 63%
• Non-interest expenses decreased $776,000 to $8.2 million

Negative

• Non-performing assets increased $2.6 million to $15.6 million (1.04% of total assets)
• 23% of deposit portfolio remains uninsured
• Tangible stockholder equity ratio decreased to 7.95% from 8.05% in previous quarter
• Accumulated other comprehensive loss on investment portfolio at $15.8 million

WAUSAU, Wis., July 22, 2025 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported second quarter earnings ending June 30, 2025 up 48% relative to the prior quarter to $0.89 per diluted common share on net income of $3.8 million, compared to $0.60 per diluted common share on net income of $2.6 million during the first quarter ending March 31, 2025, and $0.56 per diluted common share on net income of $2.4 million during the second quarter ending June 30, 2024.

PSB’s second quarter 2025 operating results reflected the following changes from the first quarter of 2025: (1) a stronger net interest margin as asset yields rose; (2) higher non-interest income from higher mortgage banking income; and (3) lower non-interest expenses due to lower salaries and employee benefit expenses.

“We are proud to report record earnings for the second quarter, highlighted by an improving net interest margin and cost controls that have lowered our non-interest expenses and improved our efficiency ratio to 63%. Over the past year, we increased tangible book value per share by 13.1% while paying $0.64 per share in dividends to our shareholders. As loans continue to reprice at higher rates and new loans are originated at higher levels than current yields, we expect our net interest margin to continue to expand from current levels. While non-performing assets have grown, they represent a small number with special circumstances, and we expect favorable resolutions for certain significant non-performing assets by the end of the calendar year,” stated Scott Cattanach, President and CEO.

June 30, 2025, Highlights:

• Net interest income increased $470,000 to $10.7 million for the quarter ended June 30, 2025, from $10.3 million for the quarter ended March 31, 2025, due in part to higher yields on loans and one additional day during the quarter.

• Noninterest income increased $230,000 to $2.1 million for the quarter ended June 30, 2025, compared to $1.9 million the prior quarter due primarily to higher mortgage banking revenues.

• Noninterest expenses decreased $776,000 to $8.2 million during the quarter ended June 30, 2025 from $9.0 million for the quarter ended March 31, 2025, reflecting lower salary and benefit expenses.

• Net loans increased $12.9 million, or 1% in the second quarter ended June 30, 2025, to $1.11 billion compared to March 31, 2025, largely due to increased commercial line usage. Allowance for credit losses remained at 1.12% of gross loans.

• Non-performing assets increased $2.6 million to $15.6 million, or 1.04% of total assets at June 30, 2025 compared to the previous quarter. One existing non-performing loan relationship increased during the quarter as an additional loan in this relationship was moved to non-performing status. The underlying security of these loans is undergoing a sales process by the owner. Additionally, an unrelated new loan relationship was added to non-performing status.

• Total deposits increased $47.5 million to $1.18 billion at June 30, 2025 from $1.13 billion at March 31, 2025, with the increase largely consisting of non-interest bearing demand deposits and time deposits with balances greater than $250,000. Core deposits increased $32.3 million while brokered deposits decreased $13.7 million. A portion of the overall deposit increase relates to an established customer making a large time deposit near the end of the quarter.

• Return on average tangible common equity was 13.11% for the quarter ended June 30, 2025, compared to 9.21% the prior quarter and 9.34% in the year ago quarter.

• Tangible book value per common share was up 13.1% over the past year to $27.77 at June 30, 2025, compared to $24.55 at June 30, 2024. Additionally, PSB paid dividends totaling $0.64 per share during the past year.
  
  

Balance Sheet and Asset Quality Review

Total assets increased $46.8 million during the second quarter to $1.51 billion at June 30, 2025, compared to $1.46 billion at March 31, 2025. Cash and cash equivalents increased $34.9 million to $57.5 million at June 30, 2025 from $22.7 million at March 31, 2025 as new deposits replenished reserves used to fund new loans. Investment securities available for sale increased $1.7 million to $184.3 million at June 30, 2025, from $182.6 million one quarter earlier.

Gross loans receivable increased $10.7 million to $1.15 billion at June 30, 2025, compared to one quarter earlier, due primarily to increased commercial & industrial lending. Commercial & industrial loans increased $11.2 million to $135.3 million at June 30, 2025, and commercial real estate loans increased $3.6 million to $566.5 million at June 30, 2025, compared to three months earlier. Commercial real estate construction and development loans decreased $9.2 million to $77.9 million at June 30, 2025, while residential real estate loans increased $3.3 million from the prior quarter to $337.1 million. Agricultural loans increased $1.6 million to $13.2 million at June 30, 2025 compared to three months earlier. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 56.1% of gross loans, followed by residential real estate loans at 29.4% of gross loans, commercial non-real estate loans at 14.1% and consumer loans at 0.4%.

The allowance for credit losses remained at 1.12% of gross loans at June 30, 2025 while annualized net charge-offs to average loans were zero for the quarter ended June 30, 2025. Non-performing assets increased $2.6 million to $15.6 million, or 1.04% of total assets at June 30, 2025 up from 0.89% at March 31, 2025. The increase reflects a loan relationship that was non-performing in the prior quarter having an additional loan move to non-performing status in the second quarter and a separate loan relationship within the timber industry where the customer has experienced irregular cashflows. Approximately 80% of the non-performing assets consisted of five loan relationships.

Total deposits increased 4% quarter over quarter, with 23% of the deposit portfolio being uninsured at June 30^th. Overall, core deposits increased $32.3 million during the quarter while brokered deposits decreased $13.7 million.

At June 30, 2025, non-interest bearing demand deposits increased to 23.6% of total deposits from 21.7% the prior quarter, while interest-bearing demand and savings deposits decreased to 27.4% at June 30, 2025 from 29.4% one quarter earlier. The additional deposit inflow helped to decrease FHLB advances during the quarter by $4.3 million and brokered deposits by $13.7 million.

Tangible stockholder equity as a percentage of total tangible assets decreased to 7.95% at June 30, 2025, compared to 8.05% at March 31, 2025, and 7.32% at June 30, 2024.

Tangible net book value per common share increased $3.22 during the quarter to $27.77, at June 30, 2025 compared to $24.55 one year earlier, an increase of 13.1% after dividends of $0.64 were paid to shareholders. Relative to the prior quarter’s tangible book value per common share of $26.94, tangible net book value per common share increased primarily due to earnings and an increase in the fair market value of the investment portfolios. The accumulated other comprehensive loss on the investment portfolio was $15.8 million at June 30, 2025, compared to $16.7 million one quarter earlier.

Operations Review

Net interest income increased to $10.7 million (on a net margin of 3.09%) for the second quarter of 2025, from $10.3 million (on a net margin of 3.03%) for the first quarter of 2025, and increased from $9.4 million (on a net margin of 2.84%) for the second quarter of 2024. The higher net interest income in the current period primarily relates to higher loan yields during the quarter. Earning asset yields increased to 5.40% during the second quarter of 2025 from 5.35% the prior period and cost of funds increased four basis points to 3.06% compared to 3.02% during the first quarter of 2025. Relative to one year earlier, earning asset yields were up 19 basis points while the overall cost of funds was flat.

The increase in earning asset yields was due to higher yields on loan originations, loan renewals and security repricing. Loan yields increased during the second quarter of 2025 to 5.91% from 5.82% for the first quarter of 2025. Taxable security yields on a smaller average balance relative to the prior quarter were 3.24% for the quarter ended June 30, 2025, compared to 3.35% for the quarter ended March 31, 2025, while tax-exempt security yields remained at 3.35% for the quarter ended June 30, 2025.

Total noninterest income increased $230,000 during the second quarter of 2025 to $2.1 million. An increase of $161,000 in mortgage banking income during the quarter accounted for the majority of the change.

Noninterest expenses decreased $776,000 to $8.2 million for the second quarter of 2025, compared to $9.0 million for the first quarter of 2025, and decreased $202,000 from $8.4 million for the second quarter of 2024. On a linked quarter basis, salary and benefits expense decreased $474,000 as the first quarter results reflected an increase in variable commercial sales incentive expense. Occupancy and facilities costs decreased $67,000, data processing and other office operation expenses decreased $12,000, a gain on the sale of foreclosed real estate was $58,000 and various other noninterest expenses decreased $225,000 during the second quarter ended June 30, 2025. Partially offsetting the expense reductions was an increase in advertising and promotion expenses of $60,000.

Income taxes increased $279,000 during the second quarter to $752,000, from $473,000 one quarter earlier on higher income levels. The effective tax rate for the quarter ended June 30, 2025, was 16.6% compared to 15.6% for the first quarter ended March 31, 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
June 30, and March 31, 2025, September 30, and June 30, 2024, unaudited, December 31, 2024 derived from audited financial statements
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
(dollars in thousands, except per share data)			2025			2025			2024			2024			2024
Assets
Cash and due from banks		$	23,022		$	19,628		$	21,414		$	23,554		$	16,475
Interest-bearing deposits			2,890			702			3,724			5,126			251
Federal funds sold			31,624			2,351			15,360			58,434			69,249
Cash and cash equivalents			57,536			22,681			40,498			87,114			85,975
Securities available for sale (at fair value)			184,320			182,594			189,086			174,911			165,177
Securities held to maturity (fair values of $75,016, $77,375, $79,654, $82,389 and $79,993 respectively)			83,123			85,373			86,748			86,847			86,825
Equity securities			2,885			2,847			2,782			1,752			1,661
Loans held for sale			349			734			217			-			2,268
Loans receivable, net (allowance for credit losses of $12,553, $12,392, $12,342, $12,598 and $12,597 respectively)			1,109,296			1,096,422			1,078,204			1,057,974			1,074,844
Accrued interest receivable			5,006			5,184			5,042			4,837			5,046
Foreclosed assets			-			300			-			-			-
Premises and equipment, net			13,397			13,522			13,805			14,065			14,048
Mortgage servicing rights, net			1,684			1,717			1,742			1,727			1,688
Federal Home Loan Bank stock (at cost)			9,297			8,825			8,825			8,825			8,825
Cash surrender value of bank-owned life insurance			25,067			24,897			24,732			24,565			24,401
Core deposit intangible			330			353			195			212			229
Goodwill			3,495			3,495			2,541			2,541			2,541
Other assets			10,832			10,828			11,539			10,598			12,111
TOTAL ASSETS		$	1,506,617		$	1,459,772		$	1,465,956		$	1,475,968		$	1,485,639
Liabilities
Non-interest-bearing deposits		$	277,239		$	245,672		$	259,515		$	265,078		$	250,435
Interest-bearing deposits			900,303			884,364			887,834			874,035			901,886
Total deposits			1,177,542			1,130,036			1,147,349			1,139,113			1,152,321
Federal Home Loan Bank advances			165,950			170,250			162,250			181,250			184,900
Other borrowings			6,250			6,343			6,872			6,128			5,775
Senior subordinated notes			4,784			4,783			4,781			4,779			4,778
Junior subordinated debentures			13,075			13,049			13,023			12,998			12,972
Allowance for credit losses on unfunded commitments			622			672			672			477			477
Accrued expenses and other liabilities			15,118			13,554			14,723			12,850			13,069
Total liabilities			1,383,341			1,338,687			1,349,670			1,357,595			1,374,292
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 - 4,041,573, 4,084,708, 4,092,977, 4,105,594 and 4,128,382 shares, respectively			1,830			1,830			1,830			1,830			1,830
Additional paid-in capital			8,659			8,608			8,610			8,567			8,527
Retained earnings			144,548			142,277			139,838			138,142			135,276
Accumulated other comprehensive income (loss), net of tax			(15,764	)		(16,692	)		(19,314	)		(15,814	)		(20,503	)
Treasury stock, at cost - 1,449,225, 1,406,090, 1,397,821, 1,385,204 and 1,362,416 shares, respectively			(23,197	)		(22,138	)		(21,878	)		(21,552	)		(20,983	)
Total stockholders' equity			123,276			121,085			116,286			118,373			111,347
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,506,617		$	1,459,772		$	1,465,956		$	1,475,968		$	1,485,639

PSB Holdings, Inc.
Consolidated Statements of Income
		Quarter Ended															Six Months Ended
(dollars in thousands,		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			June
except per share data - unaudited)			2025			2025			2024			2024			2024			2025			2024
Interest and dividend income:
Loans, including fees		$	16,510		$	15,782		$	15,646		$	15,634		$	15,433		$	32,292		$	30,542
Securities:
Taxable			1,566			1,641			1,545			1,345			1,295			3,207			2,492
Tax-exempt			506			517			522			522			521			1,023			1,047
Other interest and dividends			332			345			948			699			265			677			608
Total interest and dividend income			18,914			18,285			18,661			18,200			17,514			37,199			34,689
Interest expense:
Deposits			5,934			5,884			6,027			5,905			5,838			11,818			11,920
FHLB advances			1,899			1,792			1,890			2,038			1,860			3,691			3,310
Other borrowings			48			47			57			57			58			95			118
Senior subordinated notes			58			59			59			59			58			117			117
Junior subordinated debentures			250			248			252			252			255			498			506
Total interest expense			8,189			8,030			8,285			8,311			8,069			16,219			15,971
Net interest income			10,725			10,255			10,376			9,889			9,445			20,980			18,718
Provision for credit losses			110			117			-			-			100			227			195
Net interest income after provision for credit losses			10,615			10,138			10,376			9,889			9,345			20,753			18,523
Noninterest income:
Service fees			366			358			362			367			350			724			686
Mortgage banking income			411			250			414			433			433			661			741
Investment and insurance sales commissions			335			326			226			230			222			799			343
Net loss on sale of securities			-			(1	)		(511	)		-			-			661			(495	)
Increase in cash surrender value of life insurance			170			163			166			165			159			(1	)		316
Other noninterest income			814			770			620			648			742			1,584			1,359
Total noninterest income			2,096			1,866			1,277			1,843			1,906			3,962			2,950
Noninterest expense:
Salaries and employee benefits			4,828			5,302			4,691			4,771			5,167			10,130			10,290
Occupancy and facilities			719			786			691			757			733			1,505			1,454
Loss (gain) on foreclosed assets			(58	)		-			-			1			-			(58	)		-
Data processing and other office operations			1,189			1,201			1,111			1,104			1,047			2,390			2,069
Advertising and promotion			189			129			141			164			171			318			300
Core deposit intangible amortization			23			23			17			17			20			46			44
Other noninterest expenses			1,303			1,528			1,351			1,337			1,257			2,831			2,563
Total noninterest expense			8,193			8,969			8,002			8,151			8,395			17,162			16,720
Income before provision for income taxes			4,518			3,035			3,651			3,581			2,856			7,553			4,753
Provision for income taxes			752			473			524			593			410			1,225			579
Net income		$	3,766		$	2,562		$	3,127		$	2,988		$	2,446		$	6,328		$	4,174
Preferred stock dividends declared		$	122		$	122		$	122		$	122		$	122		$	244		$	244
Net income available to common shareholders		$	3,644		$	2,440		$	3,005		$	2,866		$	2,324		$	6,084		$	3,930
Basic earnings per common share		$	0.90		$	0.60		$	0.73		$	0.69		$	0.56		$	1.49		$	0.95
Diluted earnings per common share		$	0.89		$	0.60		$	0.73		$	0.69		$	0.56		$	1.49		$	0.95

PSB Holdings, Inc.
Quarterly Financial Summary
(dollars in thousands, except per share data)		Quarter ended
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
Earnings and dividends:			2025			2025			2024			2024			2024
Interest income		$	18,914		$	18,285		$	18,661		$	18,200		$	17,514
Interest expense		$	8,189		$	8,030		$	8,285		$	8,311		$	8,069
Net interest income		$	10,725		$	10,255		$	10,376		$	9,889		$	9,445
Provision for credit losses		$	110		$	117		$	-		$	-		$	100
Other noninterest income		$	2,096		$	1,866		$	1,277		$	1,843		$	1,906
Other noninterest expense		$	8,193		$	8,969		$	8,002		$	8,151		$	8,395
Net income available to common shareholders		$	3,644		$	2,440		$	3,005		$	2,866		$	2,324
Basic earnings per common share (3)		$	0.90		$	0.60		$	0.73		$	0.69		$	0.56
Diluted earnings per common share (3)		$	0.89		$	0.60		$	0.73		$	0.69		$	0.56
Dividends declared per common share (3)		$	0.34		$	-		$	0.32		$	-		$	0.32
Tangible net book value per common share (4)		$	27.77		$	26.94		$	25.98		$	26.41		$	24.55
Semi-annual dividend payout ratio			22.58	%	n/a				23.27	%	n/a				33.61	%
Average common shares outstanding			4,070,721			4,088,824			4,094,360			4,132,218			4,139,456
Balance sheet - average balances:
Loans receivable, net of allowances for credit loss		$	1,111,004		$	1,091,533		$	1,064,619		$	1,066,795		$	1,088,013
Assets		$	1,480,851		$	1,462,862		$	1,479,812		$	1,445,613		$	1,433,749
Deposits		$	1,142,279		$	1,140,397		$	1,151,450		$	1,110,854		$	1,111,240
Stockholders' equity		$	123,077		$	118,576		$	118,396		$	114,458		$	110,726
Performance ratios:
Return on average assets (1)			1.02	%		0.71	%		0.84	%		0.82	%		0.69	%
Return on average common stockholders' equity (1)			12.61	%		8.88	%		10.75	%		10.63	%		9.03	%
Return on average tangible common stockholders' equity (1)(4)			13.11	%		9.21	%		11.07	%		10.96	%		9.34	%
Net loan charge-offs to average loans (1)			0.00	%		0.02	%		0.02	%		0.00	%		0.00	%
Nonperforming loans to gross loans			1.39	%		1.15	%		0.95	%		0.97	%		1.15	%
Nonperforming assets to total assets			1.04	%		0.89	%		0.71	%		0.71	%		0.84	%
Allowance for credit losses to gross loans			1.12	%		1.12	%		1.13	%		1.18	%		1.16	%
Nonperforming assets to tangible equity plus the allowance for credit losses (4)			12.64	%		10.71	%		8.85	%		8.71	%		11.09	%
Net interest rate margin (1)(2)			3.09	%		3.03	%		2.96	%		2.90	%		2.84	%
Net interest rate spread (1)(2)			2.34	%		2.33	%		2.23	%		2.16	%		2.15	%
Service fee revenue as a percent of average demand deposits (1)			0.54	%		0.58	%		0.53	%		0.56	%		0.56	%
Noninterest income as a percent of gross revenue			9.98	%		9.26	%		6.40	%		9.20	%		9.81	%
Efficiency ratio (2)			63.00	%		72.88	%		67.59	%		68.43	%		72.52	%
Noninterest expenses to average assets (1)			2.22	%		2.49	%		2.15	%		2.24	%		2.35	%
Average stockholders' equity less accumulated other comprehensive income (loss) to average assets			9.31	%		9.22	%		9.08	%		9.06	%		9.03	%
Tangible equity to tangible assets (4)			7.95	%		8.05	%		7.76	%		7.85	%		7.32	%
Stock price information:
High		$	25.70		$	26.50		$	27.90		$	25.00		$	21.40
Low		$	23.65		$	25.60		$	25.00		$	20.30		$	19.75
Last trade value at quarter-end		$	23.89		$	25.70		$	26.50		$	25.00		$	20.40
(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
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
(dollars in thousands - unaudited)			2025			2025			2024			2024			2024
Net income		$	3,766		$	2,562		$	3,127		$	2,988		$	2,446
Other comprehensive income, net of tax:
Unrealized gain (loss) on securities available for sale			972			2,551			(3,955	)		4,738			184
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			(35	)		-			(76	)		-			-
Amortization of unrealized loss included in net income on securities available for sale transferred to securities held to maturity			91			89			90			90			89
Unrealized gain (loss) on interest rate swap			(87	)		(6	)		65			(101	)		39
Reclassification adjustment of interest rate swap settlements included in earnings			(13	)		(13	)		(27	)		(38	)		(40	)
Other comprehensive income (loss)			928			2,622			(3,499	)		4,689			272
Comprehensive income (loss)		$	4,694		$	5,184		$	(372	)	$	7,677		$	2,718

PSB Holdings, Inc.
Nonperforming Assets as of:
		Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
(dollars in thousands)			2025			2025			2024			2024			2024
Nonaccrual loans (excluding restructured loans)		$	15,333		$	12,404		$	10,109		$	10,116		$	12,184
Nonaccrual restructured loans			13			17			18			25			28
Restructured loans not on nonaccrual			295			280			286			292			299
Accruing loans past due 90 days or more			-			-			-			-			-
Total nonperforming loans			15,641			12,701			10,413			10,433			12,511
Other real estate owned			-			300			-			-			-
Total nonperforming assets		$	15,641		$	13,001		$	10,413		$	10,433		$	12,511
Nonperforming loans as a % of gross loans receivable			1.39	%		1.15	%		0.95	%		0.97	%		1.15	%
Total nonperforming assets as a % of total assets			1.04	%		0.89	%		0.71	%		0.71	%		0.84	%
Allowance for credit losses as a % of nonperforming loans			80.26	%		97.57	%		118.52	%		120.75	%		100.69	%

PSB Holdings, Inc.
Nonperforming Assets >= $500,000 net book value before specific reserves
At June 30, 2025
(dollars in thousands)
			Gross			Specific
Collateral Description		Asset Type	Principal			Reserves
Real estate - Recreational facility		Nonaccrual		3,940			145
Real estate - Equipment dealership		Nonaccrual		2,708			560
Real estate - Non owner occupied rental properties		Nonaccrual		4,227			0
Real estate - Wood products		Nonaccrual		1,707			271
Total listed nonperforming assets			$	12,582		$	976
Total bank wide nonperforming assets			$	15,641		$	1,180
Listed assets as a % of total nonperforming assets				80	%		83	%

PSB Holdings, Inc.
Loan Composition by Collateral Type
Quarter-ended (dollars in thousands)		Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024
Commercial:
Commercial and industrial		$	135,313		$	124,074		$	116,864		$	115,234		$	125,508
Agriculture			13,219			11,632			11,568			11,203			11,480
Municipal			12,805			12,878			15,733			12,596			11,190
Total Commercial			161,337			148,584			144,165			139,033			148,178
Commercial Real Estate:
Commercial real estate			566,526			562,901			551,641			541,577			544,171
Construction and development			77,905			87,080			79,377			60,952			70,540
Total Commercial Real Estate			644,431			649,981			631,018			602,529			614,711
Residential real estate:
Residential			266,203			268,490			271,643			269,954			270,944
Construction and development			31,439			26,884			28,959			34,655			36,129
HELOC			39,425			38,364			36,887			36,734			33,838
Total Residential Real Estate			337,067			333,738			337,489			341,343			340,911
Consumer installment			4,886			4,683			5,060			4,770			4,423
Subtotals - Gross loans			1,147,721			1,136,986			1,117,732			1,087,675			1,108,223
Loans in process of disbursement			(26,496	)		(28,752	)		(27,791	)		(17,836	)		(21,484	)
Subtotals - Disbursed loans			1,121,225			1,108,234			1,089,941			1,069,839			1,086,739
Net deferred loan costs			624			580			605			733			702
Allowance for credit losses			(12,553	)		(12,392	)		(12,342	)		(12,598	)		(12,597	)
Total loans receivable		$	1,109,296		$	1,096,422		$	1,078,204		$	1,057,974		$	1,074,844

PSB Holdings, Inc.
Selected Commercial Real Estate Loans by Purpose
		Jun 30,					Mar 31,					Dec 31,					Sept 30,					June 30,
(dollars in thousands)			2025					2025					2024					2024					2024
		Total Exposure			% of Portfolio (1)		Total Exposure			% of Portfolio (1)		Total Exposure			% of Portfolio (1)		Total Exposure			% of Portfolio (1)		Total Exposure			% of Portfolio (1)
Multi Family		$	145,523		14.0	%	$	143,674		13.9	%	$	140,087		14.0	%	$	140,307		14.7	%	$	146,873		15.2	%
Industrial and Warehousing			105,256		10.2			109,366		10.6			103,794		10.4			96,995		10.2			96,286		9.6
Retail			29,407		2.8			29,285		2.8			23,438		2.3			25,263		2.7			26,154		2.7
Hotels			25,299		2.4			25,719		2.5			25,892		2.6			26,057		2.7			29,035		3.0
Office			7,131		0.7			7,254		0.7			6,234		0.6			6,378		0.7			6,518		0.7
(1) Percentage of commercial and commercial real estate portfolio and commitments.

PSB Holdings, Inc.
Deposit Composition
Insured and Collateralized Deposits		June 30,					March 31,					December 31,					September 30,					June 30,
(dollars in thousands)			2025					2025					2024					2024					2024
		$			%		$			%		$			%		$			%		$			%
Non-interest bearing demand		$	225,916		19.2	%	$	206,562		18.3	%	$	204,167		17.8	%	$	210,534		18.5	%	$	202,343		17.5	%
Interest-bearing demand and savings			304,779		25.9	%		314,957		27.9	%		315,900		27.6	%		305,631		26.8	%		304,392		26.5	%
Money market deposits			113,161		9.6	%		118,047		10.4	%		141,024		12.3	%		138,376		12.2	%		137,637		12.0	%
Retail and local time deposits <= $250			165,368		14.0	%		158,066		14.0	%		155,099		13.5	%		155,988		13.7	%		149,298		13.0	%
Total core deposits			809,224		68.7	%		797,632		70.6	%		816,190		71.2	%		810,529		71.2	%		793,670		69.0	%
Retail and local time deposits > $250			28,000		2.4	%		26,750		2.3	%		25,500		2.2	%		23,500		2.1	%		22,500		2.0	%
Broker & national time deposits <= $250			748		0.1	%		1,241		0.1	%		1,241		0.1	%		1,241		0.1	%		1,490		0.1	%
Broker & national time deposits > $250			65,917		5.6	%		79,090		7.0	%		56,164		4.9	%		56,164		4.9	%		56,328		4.9	%
Totals		$	903,889		76.8	%	$	904,713		80.0	%	$	899,095		78.4	%	$	891,434		78.3	%	$	873,988		76.0	%
PSB Holdings, Inc.
Deposit Composition
Uninsured Deposits		June 30,					March 31,					December 31,					September 30,					June 30,
(dollars in thousands)			2025					2025					2024					2024					2024
		$			%		$			%		$			%		$			%		$			%
Non-interest bearing demand		$	51,323		4.4	%	$	39,110		3.5	%	$	55,348		4.8	%	$	54,544		4.8	%	$	48,092		4.1	%
Interest-bearing demand and savings			17,983		1.5	%		17,262		1.5	%		20,934		1.8	%		18,317		1.6	%		32,674		2.8	%
Money market deposits			157,998		13.4	%		150,222		13.3	%		153,334		13.4	%		157,489		13.8	%		177,954		15.4	%
Retail and local time deposits <= $250			-		0.0	%		-		0.0	%		-		0.0	%		-		0.0	%		-		0.0	%
Total core deposits			227,304		19.3	%		206,594		18.3	%		229,616		20.0	%		230,350		20.2	%		258,720		22.3	%
Retail and local time deposits > $250			46,349		3.9	%		18,729		1.7	%		18,638		1.6	%		17,329		1.5	%		19,613		1.7	%
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		$	273,653		23.2	%	$	225,323		20.0	%	$	248,254		21.6	%	$	247,679		21.7	%	$	278,333		24.0	%
PSB Holdings, Inc.
Deposit Composition
Total Deposits		June 30,					March 31,					December 31,					September 30,					June 30,
(dollars in thousands)			2025					2025					2024					2024					2024
		$			%		$			%		$			%		$			%		$			%
Non-interest bearing demand		$	277,239		23.6	%	$	245,672		21.7	%	$	259,515		22.6	%	$	265,078		23.3	%	$	250,435		21.6	%
Interest-bearing demand and savings			322,762		27.4	%		332,219		29.4	%		336,834		29.4	%		323,948		28.4	%		337,066		29.3	%
Money market deposits			271,159		23.0	%		268,269		23.7	%		294,358		25.7	%		295,865		26.0	%		315,591		27.4	%
Retail and local time deposits <= $250			165,368		14.0	%		158,066		14.1	%		155,099		13.5	%		155,988		13.7	%		149,298		13.0	%
Total core deposits			1,036,528		88.0	%		1,004,226		88.9	%		1,045,806		91.2	%		1,040,879		91.4	%		1,052,390		91.3	%
Retail and local time deposits > $250			74,349		6.3	%		45,479		4.0	%		44,138		3.8	%		40,829		3.6	%		42,113		3.7	%
Broker & national time deposits <= $250			748		0.1	%		1,241		0.1	%		1,241		0.1	%		1,241		0.1	%		1,490		0.1	%
Broker & national time deposits > $250			65,917		5.6	%		79,090		7.0	%		56,164		4.9	%		56,164		4.9	%		56,328		4.9	%
Totals		$	1,177,542		100.0	%	$	1,130,036		100.0	%	$	1,147,349		100.0	%	$	1,139,113		100.0	%	$	1,152,321		100.0	%

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
		Quarter ended June 30, 2025									Quarter ended March 31, 2025									Quarter ended June 30, 2024
		Average						Yield /			Average						Yield /			Average						Yield /
		Balance			Interest			Rate			Balance			Interest			Rate			Balance			Interest			Rate
Assets
Interest-earning assets:
Loans (1)(2)		$	1,123,460		$	16,558		5.91	%		$	1,103,895		$	15,830		5.82	%		$	1,100,518		$	15,520		5.67	%
Taxable securities			193,926			1,566		3.24	%			198,426			1,641		3.35	%			172,563			1,295		3.02	%
Tax-exempt securities (2)			76,774			641		3.35	%			79,282			654		3.35	%			79,564			659		3.33	%
FHLB stock			9,189			166		7.25	%			8,825			241		11.08	%			7,931			182		9.23	%
Other			14,571			166		4.57	%			8,960			104		4.71	%			8,241			83		4.05	%
Total (2)			1,417,920			19,097		5.40	%			1,399,388			18,470		5.35	%			1,368,817			17,739		5.21	%
Non-interest-earning assets:
Cash and due from banks			15,498									16,292									17,345
Premises and equipment, net			13,527									13,728									13,930
Cash surrender value ins			24,960									24,795									24,297
Other assets			21,402									21,021									21,865
Allowance for credit losses			(12,456	)								(12,362	)								(12,505	)
Total		$	1,480,851								$	1,462,862								$	1,433,749
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand deposits		$	315,978		$	1,450		1.84	%		$	339,909		$	1,567		1.87	%		$	331,740		$	1,467		1.78	%
Money market deposits			262,015			1,572		2.41	%			280,396			1,685		2.44	%			271,336			1,835		2.72	%
Time deposits			294,750			2,912		3.96	%			268,821			2,632		3.97	%			257,006			2,536		3.97	%
FHLB borrowings			173,080			1,899		4.40	%			164,968			1,792		4.41	%			174,596			1,860		4.28	%
Other borrowings			8,843			48		2.18	%			6,321			47		3.02	%			6,870			58		3.40	%
Senior sub notes			4,784			58		4.86	%			4,782			59		5.00	%			4,777			58		4.88	%
Junior sub. debentures			13,062			250		7.68	%			13,036			248		7.72	%			12,960			255		7.91	%
Total			1,072,512			8,189		3.06	%			1,078,233			8,030		3.02	%			1,059,285			8,069		3.06	%
Non-interest-bearing liabilities:
Demand deposits			269,536									251,271									251,158
Other liabilities			15,726									14,782									12,580
Stockholders' equity			123,077									118,576									110,726
Total		$	1,480,851								$	1,462,862								$	1,433,749
Net interest income					$	10,908								$	10,440								$	9,670
Rate spread								2.34	%								2.33	%								2.15	%
Net yield on interest-earning assets								3.09	%								3.03	%								2.84	%
(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)
		Six months ended June 30, 2025									Six months ended June 30, 2024
		Average						Yield/			Average						Yield/
		Balance			Interest			Rate			Balance			Interest			Rate
Assets
Interest-earning assets:
Loans (1)(2)		$	1,113,731		$	32,388		5.86	%		$	1,097,419		$	30,719		5.63	%
Taxable securities			196,162			3,207		3.30	%			172,176			2,492		2.91	%
Tax-exempt securities (2)			78,021			1,295		3.35	%			79,999			1,325		3.33	%
FHLB stock			9,008			407		9.11	%			7,215			347		9.67	%
Other			11,790			270		4.62	%			10,562			261		4.97	%
Total (2)			1,408,712			37,567		5.38	%			1,367,371			35,144		5.17	%
Non-interest-earning assets:
Cash and due from banks			15,893									17,356
Premises and equipment, net			13,627									13,557
Cash surrender value ins			24,878									24,221
Other assets			21,215									21,534
Allowance for credit losses			(12,409	)								(12,445	)
Total		$	1,471,916								$	1,431,594
Liabilities & stockholders' equity Interest-bearing liabilities:
Savings and demand deposits		$	327,878		$	3,017		1.86	%		$	341,119		$	3,139		1.85	%
Money market deposits			270,785			3,257		2.43	%			272,591			3,732		2.75	%
Time deposits			281,857			5,544		3.97	%			260,832			5,049		3.89	%
FHLB borrowings			169,046			3,691		4.40	%			158,761			3,310		4.19	%
Other borrowings			7,589			95		2.52	%			7,712			118		3.08	%
Senior sub. notes			4,783			117		4.93	%			4,776			117		4.93	%
Junior sub. debentures			13,049			498		7.70	%			12,947			506		7.86	%
Total			1,074,987			16,219		3.04	%			1,058,738			15,971		3.03	%
Non-interest-bearing liabilities:
Demand deposits			260,522									249,909
Other liabilities			15,492									12,881
Stockholders' equity			120,915									110,066
Total		$	1,471,916								$	1,431,594
Net interest income					$	21,348								$	19,173
Rate spread								2.34	%								2.14	%
Net yield on interest-earning assets								3.06	%								2.82	%
(1) Nonaccrual loans are included in the daily average loan balances outstanding.
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.

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

FAQ

What were PSB Holdings (PSBQ) Q2 2025 earnings per share?

PSB Holdings reported record earnings of $0.89 per diluted share for Q2 2025, up 48% from $0.60 in Q1 2025 and $0.56 in Q2 2024.

How much did PSB Holdings' deposits grow in Q2 2025?

Total deposits increased $47.5 million to $1.18 billion, with core deposits up $32.3 million while brokered deposits decreased $13.7 million.

What is PSB Holdings' current net interest margin?

PSB Holdings' net interest margin improved to 3.09% in Q2 2025, up from 3.03% in Q1 2025 and 2.84% in Q2 2024.

How much are PSB Holdings' non-performing assets?

Non-performing assets increased to $15.6 million or 1.04% of total assets at June 30, 2025, up from 0.89% in the previous quarter.

What is PSB Holdings' current tangible book value per share?

Tangible book value per share reached $27.77 as of June 30, 2025, representing a 13.1% increase year-over-year while paying $0.64 in dividends.