PSB Holdings, Inc. Reports Second Quarter 2023 Earnings of $0.64 Per Share; Loan Growth Up 7.7% From Prior Quarter; New Branch in Stevens Point Opened
07/24/2023 - 08:30 AM
WAUSAU, Wis., July 24, 2023 (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, 2023 of $0.64 per common share on net income of $2.7 million , compared to $0.67 per common share on net income of $2.9 million during the first quarter ending March 31, 2023, and $0.72 per common share on net income of $3.2 million during the second quarter ending June 30, 2022.
PSB’s second quarter 2023 operating results reflected the following changes from the first quarter of 2023: (1) lower net interest income due to rising deposit and FHLB advance costs; (2) higher non-interest income despite losses on sale of securities; (3) slightly higher non-interest expense related to health care expenses; (4) higher accumulated other comprehensive loss due to an increase in intermediate interest rates; (5) strong loan growth of $75 million ; and (6) increased borrowings to fund seasonal business customer and municipal deposit outflows, promote increased on-balance sheet liquidity, and to fund net loan growth.
“We realized strong loan growth in the second quarter which has helped boost yields on the loan portfolio and offset increased interest expense. Additionally, with a gain realized on a life insurance policy, we were able to offset a loss on the sale of securities and right-size our investment portfolio with better asset yields. Towards the end of the quarter, and with the addition of new loans, we began to see the compression on our net interest margin stabilize,” stated Scott Cattanach, President and CEO. “On July 14th , we converted our loan production office in Stevens Point to a full service branch which should facilitate attracting full deposit relationships with existing and new loan customers in the Stevens Point community.”
June 30, 2023 Highlights:
Loans increased $75.1 million in the second quarter ended June 30, 2023 to $1.1 billion from $973.3 million at the end of the first quarter March 31, 2023. Tangible book value per common share increased to $22.64 at June 30, 2023 from $22.43 one quarter earlier. Tangible book value per share benefited from fewer shares outstanding. Return on tangible common equity was 11.14% for the quarter ended June 30, 2023 compared to 12.51% the prior quarter. Net interest income decreased to $9.5 million for the quarter ended June 30, 2023, compared to $9.9 million for the quarter ended March 31, 2023 due to funding costs rising faster than increases in asset yields. Provision for loan losses remained at $100,000 for the quarter ended June 30, 2023. The provision for the second quarter was largely related to new loan growth of $75.1 million . Noninterest income remained at $2.0 million for the quarter ended June 30, 2023 as losses on the sale of securities of $279,000 partially offset a $533,000 life insurance benefit. Investment and insurance sales commissions were also lower in the second quarter relative to the prior quarter. Net income adjusted for the non-recurring impact of a life insurance benefit and loss on the sale of securities was $2.4 million , or $0.56 per common share. Noninterest expenses increased $128,000 , or 1.6% for the second quarter of 2023 to $7.9 million from $7.8 million the prior quarter. The increase was primarily related to higher data processing and office operations costs. During the second quarter, PSB repurchased 48,055 shares of its common stock. Balance Sheet and Asset Quality Review
Total assets increased slightly to $1.42 billion at June 30, 2023, from $1.36 billion at March 31, 2023. Cash and cash equivalents totaled $44.4 million at June 30, 2023 compared to $39.6 million the previous quarter. Investment securities available for sale decreased $23.4 million from security sales, maturities and paydowns to $167.4 million at June 30, 2023 from $190.7 million one quarter earlier. Total collateralized liquidity available to meet cash demands was approximately $600 million at June 30, 2023 with an additional $300 million that could be raised in a short timeframe from the brokered CDs market.
Total loans receivable increased $75.1 million to $1.05 billion at June 30, 2023, from $973.3 million at March 31, 2023. Over the past year, loans have increased 13.3% . Commercial loans were the largest addition to the loan portfolio during the most recent quarter, which included municipal non-real estate loans. Total commercial loans increased $34.6 million to $196.4 million from $161.8 million the prior quarter. Non-owner occupied commercial real estate loans were also added to the portfolio, increasing $13.7 million to $240.0 million at June 30, 2023 from $226.3 million at March 31, 2023. Construction and land development loans increased $8.0 million during the second quarter. Owner occupied one-to-four family mortgage loans with variable rate features largely rounded out the loan growth over the quarter increasing $11.8 million to $199.1 million at June 30, 2023. Currently, the lending pipeline is expected to slow from the second quarter pace through the remainder of 2023, but the economic climate in our markets remains vibrant.
The allowance for loan losses declined slightly to 1.19% of gross loans at June 30, 2023 from 1.25% the prior quarter. Annualized net recoveries to average loans were 0.07% for the second quarter ended June 30, 2023. Non-performing assets remained at 0.45% of total assets at June 30, 2023. For the second consecutive quarter, the Bank did not own any foreclosed real estate.
Total deposits increased $35.5 million , or 3.2% , to $1.14 billion at June 30, 2023. Much of the deposit increase was non-interest bearing demand deposits (up $14.3 million ) and money market deposits (up $16.3 million ). Brokered deposits increased $19.5 million while interest-bearing demand deposits declined $21.6 million .
The composition of deposits continued to change during the June 2023 quarter as customers continue to seek higher deposit rates. At June 30, 2023, money market deposits and time deposits increased to 37.7% of deposits, compared to 36.6% at March 31, 2023. Lower-yield demand and savings deposits declined to 53.8% of deposits compared to 56.2% at March 31, 2023. Broker and national time deposits increased to 8.5% of total deposits at June 30, 2023 from 7.2% one quarter earlier. Uninsured and uncollateralized deposits represented 21.6% of total deposits at June 30, 2023 compared to 19.0% at March 31, 2023.
FHLB advances increased to $133.0 million at June 30, 2023 compared to $113.0 million at March 31, 2023. Other borrowings increased to $5.7 million at June 30, 2023 compared to $5.0 million at March 31, 2023. New FHLB advances were added to support loan growth during the quarter as well as increase cash on hand for liquidity contingency plans.
Tangible stockholder equity as a percent of total tangible assets was 7.22% at June 30, 2023, compared to 7.54% at March 31, 2023.
Tangible net book value per common share increased to $22.64 at June 30, 2023, compared to $22.43 per common share one quarter earlier. Relative to the prior quarter, accumulated other comprehensive loss increased $725,000. At June 30, 2023, the fair value on all securities (available for sale and held to maturity) was 12.0% less than amortized purchase cost, compared to 10.4% of the amortized purchase cost at March 31, 2023.
Operations Review
Net interest income decreased to $9.5 million (on a net margin of 2.98% ) for the second quarter of 2023, compared to $9.9 million (on a net margin of 3.21% ) for the first quarter of 2023, and $9.7 million (on a net margin of 3.23% ) for the second quarter of 2022. Earning asset yields increased 13 basis points to 4.58% during the second quarter of 2023 from 4.45% during the first quarter of 2023, while deposit and borrowing costs increased 44 basis points to 2.12% compared to 1.68% during the first quarter of 2023.
The increase in earning asset yields was partially due to higher yields on loans while yields on investment securities remained relatively flat during the quarter ended June 30, 2023. Taxable security yields were 2.71% for the quarter ended June 30, 2023, compared to 2.70% for the quarter ended March 31, 2023. Loan yields increased during the second quarter to 5.04% from 4.90% for the first quarter of 2023 as new loans were added to the portfolio and existing loans repriced to higher indices from Federal Reserve and market rate increases.
Rising deposit costs for money market deposits, time deposits and FHLB advances were primarily responsible for the rise in the Bank’s cost of funds. The overall cost of deposits was 1.33% for the quarter ended June 30, 2023 compared to 1.06% the prior quarter. FHLB advance costs rose to 3.78% during the second quarter ended June 30, 2023 from 3.22% the prior quarter.
Total noninterest income increased slightly for the second quarter of 2023 to $1.98 million from $1.95 million for the first quarter of 2023, due primarily to the payment of a life insurance benefit. The life insurance benefit was partially offset by the loss realized on the sale of investment securities with the sale proceeds reinvested into higher yielding loans. The increase in noninterest income also reflected larger gains on the sale of mortgage loans as origination activity increased from the prior quarter. At June 30, 2023, the Bank serviced $370.8 million in secondary market residential mortgage loans for others.
Noninterest expenses increased slightly to $7.9 million for the second quarter of 2023, compared to $7.8 million for the first quarter of 2023. The second quarter of 2023 included higher data processing and other operation expenses as well as continued elevated employee benefit expenses. Salary and employee benefit expenses were $4.9 million for the second quarter of 2023, compared to $5.0 million for the first quarter of 2023. Noninterest expense is expected to be a similar amount in the third quarter.
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 relating to the COVID-19 pandemic and its effect on PSB and Peoples, and their customers, and other risks. The forward-looking statements in this press release speak only as of the date on which they are made and PSB does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
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PSB Holdings, Inc. Consolidated Balance Sheets June 30, and March 31, 2023, September 30, and June 30, 2022, unaudited, December 31, 2022 derived from audited financial statements Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, (dollars in thousands, except per share data) 2023 2023 2022 2022 2022 Assets Cash and due from banks $ 27,409 $ 13,336 $ 28,561 $ 16,659 $ 19,149 Interest-bearing deposits 892 538 758 3,267 3,545 Federal funds sold 16,138 25,766 90 20,751 16,689 Cash and cash equivalents 44,439 39,640 29,409 40,677 39,383 Securities available for sale (at fair value) 167,382 190,738 192,197 188,425 190,478 Securities held to maturity (fair values of $81,489 , $82,610 , $80,926 , $77,467 and $82,567 respectively 87,335 87,889 87,816 87,993 88,216 Equity securities 2,178 2,070 2,032 1,870 1,781 Bank certificates of deposit (at cost) - - - - 245 Loans held for sale 151 - - - 270 Loans receivable, net 1,048,322 973,270 961,865 936,686 925,260 Accrued interest receivable 4,274 4,062 4,006 3,493 3,285 Foreclosed assets - - 160 160 160 Premises and equipment, net 13,256 13,406 13,164 13,129 12,981 Mortgage servicing rights, net 1,666 1,682 1,610 1,651 1,711 Federal Home Loan Bank stock (at cost) 6,359 4,620 2,516 2,516 2,646 Cash surrender value of bank-owned life insurance 23,776 25,078 24,922 24,765 24,608 Core deposit intangible 321 348 382 415 449 Goodwill 2,541 2,541 2,541 2,541 2,541 Other assets 14,933 14,444 15,069 15,248 13,550 TOTAL ASSETS $ 1,416,933 $ 1,359,788 $ 1,337,689 $ 1,319,569 $ 1,307,564 Liabilities Non-interest-bearing deposits $ 282,153 $ 267,836 $ 292,338 $ 298,335 $ 283,592 Interest-bearing deposits 860,981 839,757 856,417 850,483 829,867 Total deposits 1,143,134 1,107,593 1,148,755 1,148,818 1,113,459 Federal Home Loan Bank advances 133,000 113,000 43,000 40,000 67,000 Other borrowings 5,730 5,033 12,985 10,449 4,601 Senior subordinated notes 4,771 4,769 5,549 2,500 2,500 Junior subordinated debentures 12,870 12,844 12,819 12,793 12,768 Accrued expenses and other liabilities 12,495 11,338 12,639 10,114 10,938 Total liabilities 1,312,000 1,254,577 1,235,747 1,224,674 1,211,266 Stockholders’ equity Preferred stock - no par value: Authorized - 30,000 shares; no shares issued or outstanding Outstanding - 7,200, 7,200, 7,200, 0, and 0 shares, respectively 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 - 4,190,252, 4,241,501, 4,297,279, 4,414,651 and 4,423,037 shares, respectively 1,830 1,830 1,830 1,830 1,830 Additional paid-in capital 8,382 8,311 8,300 8,294 8,238 Retained earnings 130,396 128,968 126,003 123,559 120,043 Accumulated other comprehensive income (loss), net of tax (23,240 ) (22,515 ) (24,220 ) (24,200 ) (19,423 ) Treasury stock, at cost - 1,300,546, 1,249,297, 1,193,519, 1,076,147 and 1,067,761 shares, respectively (19,635 ) (18,583 ) (17,171 ) (14,588 ) (14,390 ) Total stockholders’ equity 104,933 105,211 101,942 94,895 96,298 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,416,933 $ 1,359,788 $ 1,337,689 $ 1,319,569 $ 1,307,564
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) 2023 2023 2022 2022 2022 2023 2022 Interest and dividend income: Loans, including fees $ 12,709 $ 11,773 $ 11,251 $ 10,225 $ 9,295 $ 24,482 $ 18,349 Securities: Taxable 1,327 1,331 1,218 978 859 2,658 1,621 Tax-exempt 535 537 539 540 537 1,072 1,070 Other interest and dividends 145 148 141 163 52 293 94 Total interest and dividend income 14,716 13,789 13,149 11,906 10,743 28,505 21,134 Interest expense: Deposits 3,661 2,989 2,060 1,341 595 6,650 1,038 FHLB advances 1,200 547 167 209 234 1,747 403 Other borrowings 48 62 38 14 4 110 6 Senior subordinated notes 58 62 55 28 28 120 56 Junior subordinated debentures 242 234 224 202 179 476 345 Total interest expense 5,209 3,894 2,544 1,794 1,040 9,103 1,848 Net interest income 9,507 9,895 10,605 10,112 9,703 19,402 19,286 Provision for loan losses 100 100 - - - 200 - Net interest income after provision for loan losses 9,407 9,795 10,605 10,112 9,703 19,202 19,286 Noninterest income: Service fees 378 361 381 409 392 739 780 Mortgage banking income 311 325 235 228 299 636 752 Investment and insurance sales commissions 287 365 498 357 404 652 860 Net loss on sale of securities (279 ) - - - - (279 ) - Increase in cash surrender value of life insurance 149 157 157 157 152 306 302 Life insurance death benefit 533 - - - - 533 - Other noninterest income 605 742 553 558 686 1,347 1,217 Total noninterest income 1,984 1,950 1,824 1,709 1,933 3,934 3,911 Noninterest expense: Salaries and employee benefits 4,884 5,006 4,700 4,302 4,548 9,890 8,938 Occupancy and facilities 698 699 641 687 629 1,397 1,294 Loss (gain) on foreclosed assets 4 (50 ) 2 4 - (46 ) (6 ) Data processing and other office operations 951 880 910 906 912 1,831 1,773 Advertising and promotion 166 162 180 185 173 328 325 Core deposit intangible amortization 27 34 34 34 38 61 85 Other noninterest expenses 1,202 1,073 1,219 1,069 1,151 2,275 2,234 Total noninterest expense 7,932 7,804 7,686 7,187 7,451 15,736 14,643 Income before provision for income taxes 3,459 3,941 4,743 4,634 4,185 7,400 8,554 Provision for income taxes 652 941 1,143 1,119 993 1,593 2,032 Net income $ 2,807 $ 3,000 $ 3,600 $ 3,515 $ 3,192 $ 5,807 $ 6,522 Preferred stock dividends declared $ 122 $ 122 $ 81 $ - $ - $ 122 $ - Net income available to common shareholders $ 2,685 $ 2,878 $ 3,519 $ 3,515 $ 3,192 $ 5,685 $ 6,522 Basic earnings per common share $ 0.64 $ 0.67 $ 0.80 $ 0.80 $ 0.72 $ 1.34 $ 1.47 Diluted earnings per common share $ 0.64 $ 0.67 $ 0.80 $ 0.80 $ 0.72 $ 1.34 $ 1.47
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: 2023 2023 2022 2022 2022 Interest income $ 14,716 $ 13,789 $ 13,149 $ 11,906 $ 10,743 Interest expense $ 5,209 $ 3,894 $ 2,544 $ 1,794 $ 1,040 Net interest income $ 9,507 $ 9,895 $ 10,605 $ 10,112 $ 9,703 Provision for loan losses $ 100 $ 100 $ - $ - $ - Other noninterest income $ 1,984 $ 1,950 $ 1,824 $ 1,709 $ 1,933 Other noninterest expense $ 7,932 $ 7,804 $ 7,686 $ 7,187 $ 7,451 Net income available to common shareholders $ 2,685 $ 2,878 $ 3,519 $ 3,515 $ 3,192 Basic earnings per common share (3) $ 0.64 $ 0.67 $ 0.80 $ 0.80 $ 0.72 Diluted earnings per common share (3) $ 0.64 $ 0.67 $ 0.80 $ 0.80 $ 0.72 Dividends declared per common share (3) $ 0.30 $ - $ 0.25 $ - $ 0.25 Tangible net book value per common share (4) $ 22.64 $ 22.43 $ 21.37 $ 20.83 $ 21.10 Semi-annual dividend payout ratio 27.38 % n/a 15.27 % n/a 16.96 % Average common shares outstanding 4,218,226 4,275,160 4,377,330 4,419,421 4,428,939 Balance sheet - average balances: Loans receivable, net of allowances for loss $ 1,000,349 $ 964,029 $ 945,551 $ 931,344 $ 904,710 Assets $ 1,367,363 $ 1,336,511 $ 1,321,776 $ 1,323,400 $ 1,290,906 Deposits $ 1,098,039 $ 1,124,091 $ 1,146,066 $ 1,141,784 $ 1,099,314 Stockholders’ equity $ 106,762 $ 103,406 $ 100,037 $ 98,630 $ 98,261 Performance ratios: Return on average assets (1) 0.79 % 0.87 % 1.06 % 1.05 % 0.99 % Return on average stockholders’ equity (1) 10.09 % 11.29 % 13.96 % 14.14 % 13.03 % Return on average tangible common stockholders’ equity (1)(4) 11.14 % 12.51 % 15.12 % 14.58 % 13.29 % Net loan charge-offs to average loans (1) -0.07 % -0.02 % 0.03 % 0.01 % -0.02 % Nonperforming loans to gross loans 0.60 % 0.62 % 0.64 % 1.16 % 1.21 % Nonperforming assets to total assets 0.45 % 0.45 % 0.48 % 0.85 % 0.88 % Allowance for loan losses to gross loans 1.19 % 1.25 % 1.26 % 1.30 % 1.32 % Nonperforming assets to tangible equity plus the allowance for loan losses (4) 5.96 % 5.76 % 6.22 % 10.89 % 11.04 % Net interest rate margin (1)(2) 2.98 % 3.21 % 3.41 % 3.24 % 3.23 % Net interest rate spread (1)(2) 2.46 % 2.77 % 3.10 % 3.04 % 3.11 % Service fee revenue as a percent of average demand deposits (1) 0.58 % 0.52 % 0.50 % 0.56 % 0.57 % Noninterest income as a percent of gross revenue 11.88 % 12.39 % 12.18 % 12.55 % 15.25 % Efficiency ratio (2) 68.09 % 65.02 % 61.06 % 60.02 % 63.20 % Noninterest expenses to average assets (1) 2.33 % 2.37 % 2.31 % 2.15 % 2.32 % Average stockholders’ equity less accumulated other comprehensive income (loss) to average assets 9.33 % 9.32 % 9.23 % 8.95 % 8.80 % Tangible equity to tangible assets (4) 7.22 % 7.54 % 7.42 % 6.98 % 7.15 % Stock price information: High $ 21.38 $ 25.75 $ 22.74 $ 23.94 $ 26.35 Low $ 19.75 $ 20.00 $ 21.50 $ 22.50 $ 22.82 Last trade value at quarter-end $ 20.35 $ 21.15 $ 21.90 $ 22.50 $ 23.50 (1) Annualized (2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21% . (3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals. (4) Tangible stockholders’ equity excludes intangible assets.
PSB Holdings, Inc. Consolidated Statements of Comprehensive Income Quarter Ended Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, (dollars in thousands - unaudited) 2023 2023 2022 2022 2022 Net income $ 2,807 $ 3,000 $ 3,600 $ 3,515 $ 3,192 Other comprehensive income, net of tax: Unrealized gain (loss) on securities available for sale (1,168 ) 1,601 (116 ) (4,915 ) (5,573 ) Reclassification adjustment for security loss included in net income 202 - - - - Amortization of unrealized loss included in net income on securities available for sale transferred to securities held to maturity 107 129 93 92 176 Unrealized gain (loss) on interest rate swap 161 (1 ) 11 32 43 Reclassification adjustment of interest rate swap settlements included in earnings (27 ) (24 ) (8 ) 13 28 Other comprehensive income (loss) (725 ) 1,705 (20 ) (4,778 ) (5,326 ) Comprehensive income (loss) $ 2,082 $ 4,705 $ 3,580 $ (1,263 ) $ (2,134 )
PSB Holdings, Inc. Nonperforming Assets as of: Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, (dollars in thousands) 2023 2023 2022 2022 2022 Nonaccrual loans (excluding restructured loans) $ 6,000 $ 5,773 $ 5,879 $ 6,048 $ 6,036 Nonaccrual restructured loans 50 57 62 70 146 Restructured loans not on nonaccrual 261 265 270 4,904 5,137 Accruing loans past due 90 days or more - - - - - Total nonperforming loans 6,311 6,095 6,211 11,022 11,319 Other real estate owned - - 160 160 160 Total nonperforming assets $ 6,311 $ 6,095 $ 6,371 $ 11,182 $ 11,479 Nonperforming loans as a % of gross loans receivable 0.60 % 0.62 % 0.64 % 1.16 % 1.21 % Total nonperforming assets as a % of total assets 0.45 % 0.45 % 0.48 % 0.85 % 0.88 % Allowance for loan losses as a % of nonperforming loans 177.63 % 191.63 % 197.92 % 112.28 % 109.48 %
PSB Holdings, Inc. Nonperforming Assets >= $500,000 net book value before specific reserves At June 30, 2023 (dollars in thousands) Gross Specific Collateral Description Asset Type Principal Reserves Real estate - Buffet Style Restaurant Nonaccrual $ 2,807 $ 1,058 Real estate - Independent Auto Repair Nonaccrual 726 34 Total listed nonperforming assets $ 3,533 $ 1,112 Total bank wide nonperforming assets $ 6,311 $ 1,638 Listed assets as a % of total nonperforming assets 56 % 68 %
PSB Holding, Inc. Loan Composition by Purpose Quarter-ended (dollars in thousands) Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Residential real estate: One to four family $ 199,100 $ 187,325 $ 182,688 $ 172,913 $ 169,437 HELOC loans 19,498 18,141 17,625 18,423 17,776 Residential construction & development 18,634 22,014 20,698 22,313 22,462 Residential vacant land 1,111 1,223 1,414 3,069 1,599 Total Residential real estate 238,343 228,703 222,425 216,718 211,274 Commercial/Agricultural real estate: Owner occupied Commercial real estate 238,608 237,217 220,375 211,008 205,976 SBA commercial real estate 2,078 2,112 2,514 2,616 2,458 Agriculture real estate 3,563 3,681 3,835 3,902 3,583 Construction and land development 1,691 2,825 22,330 32,158 31,465 Commercial vacant land 7,223 6,712 7,291 5,214 5,351 Total Owner occupied 253,163 252,547 256,345 254,898 248,833 Non-owner occupied Commercial real estate 240,010 226,280 228,761 225,823 227,400 One to four family residential rental 67,854 65,673 64,764 66,224 61,749 Construction and land development 49,310 41,272 27,253 25,543 25,086 Commercial vacant land 10,424 3,928 3,862 4,010 4,287 Total Non-owner occupied 367,598 337,153 324,640 321,600 318,522 Commercial/Agricultural non-real estate: Municipal non-real estate 25,223 6,430 9,915 7,133 6,352 Commercial line 73,651 57,727 63,173 56,154 65,728 Other commercial non-real estate 92,519 92,419 87,535 82,430 76,065 SBA commercial non-real estate 3,787 3,997 3,533 3,378 3,926 Agricultural non-real estate 1,204 1,250 1,290 1,491 1,409 Total Commercial/Agr. non-real estate 196,384 161,823 165,446 150,586 153,480 Consumer non-real estate: Consumer installment 3,483 3,357 4,072 4,005 4,305 Consumer line 441 529 382 494 493 Other consumer 106 108 115 116 123 Total Consumer non-real estate 4,030 3,994 4,569 4,615 4,921 Gross loans 1,059,518 984,220 973,425 948,417 937,030 Net deferred loan costs (fees) 605 542 573 537 503 Overdrafts 121 101 160 107 119 Allowance for loan losses (11,922 ) (11,593 ) (12,293 ) (12,375 ) (12,392 ) Total loans receivable $ 1,048,322 $ 973,270 $ 961,865 $ 936,686 $ 925,260
PSB Holding, Inc. Selected Commercial Real Estate Loans by Purpose Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (dollars in thousands) 2023 2023 2022 2022 2022 $ % $ % $ % $ % $ % Total Exposure % of Portfolio (1) Total Exposure % of Portfolio (1) Total Exposure % of Portfolio (1) Total Exposure % of Portfolio (1) Total Exposure % of Portfolio (1) Multi Family $ 119,573 12.4 % $ 121,559 13.0 % $ 120,232 13.1 % $ 141,414 15.6 % $ 143,074 15.7 % Industrial and Warehousing $ 84,049 8.7 % $ 78,934 8.5 % $ 76,536 8.3 % $ 83,033 9.1 % $ 79,073 8.7 % Retail $ 34,004 3.5 % $ 34,427 3.7 % $ 32,587 3.5 % $ 39,279 4.3 % $ 39,013 4.3 % Hotels $ 33,329 3.5 % $ 31,069 3.3 % $ 32,940 3.6 % $ 26,958 3.0 % $ 26,948 3.0 % Office $ 8,395 0.9 % $ 8,544 0.9 % $ 8,652 0.9 % $ 8,758 1.0 % $ 8,862 1.0 % (1) Percentage of 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) 2023 2023 2022 2022 2022 $ % $ % $ % $ % $ % Non-interest bearing demand $ 201,351 17.6 % $ 205,350 18.6 % $ 203,115 17.7 % $ 216,116 18.7 % $ 207,852 18.6 % Interest-bearing demand and savings 310,006 27.1 % 329,364 29.7 % 345,854 30.1 % 348,989 30.4 % 331,034 29.7 % Money market deposits 126,851 11.1 % 128,576 11.6 % 131,400 11.4 % 130,126 11.3 % 132,374 11.9 % Retail and local time deposits <= $250 140,572 12.3 % 136,090 12.3 % 130,205 11.3 % 132,095 11.5 % 136,230 12.2 % Total core deposits 778,780 68.1 % 799,380 72.2 % 810,574 70.5 % 827,326 71.9 % 807,490 72.4 % Retail and local time deposits > $250 20,250 1.8 % 17,000 1.5 % 14,500 1.3 % 12,250 1.1 % 13,000 1.2 % Broker & national time deposits <= $250 3,965 0.3 % 5,953 0.5 % 6,451 0.6 % 6,700 0.6 % 7,443 0.7 % Broker & national time deposits > $250 93,956 8.2 % 74,485 6.8 % 82,439 7.2 % 82,439 7.2 % 56,255 5.1 % Totals $ 896,951 78.4 % $ 896,818 81.0 % $ 913,964 79.6 % $ 928,715 80.8 % $ 884,188 79.4 % PSB Holdings, Inc. Deposit Composition Uninsured Deposits June 30, March 31, December 31, September 30, June 30, (dollars in thousands) 2023 2023 2022 2022 2022 $ % $ % $ % $ % $ % Non-interest bearing demand $ 80,802 7.1 % $ 62,486 5.6 % $ 89,223 7.7 % $ 82,219 7.2 % $ 75,740 6.8 % Interest-bearing demand and savings 22,604 2.0 % 24,854 2.2 % 49,917 4.3 % 28,842 2.5 % 45,116 4.1 % Money market deposits 127,871 11.2 % 109,894 10.0 % 84,673 7.4 % 98,493 8.6 % 94,533 8.5 % Retail and local time deposits <= $250 0 0.0 % 0 0.0 % 0 0.0 % - 0.0 % - 0.0 % Total core deposits 231,277 20.3 % 197,234 17.8 % 223,813 19.4 % 209,554 18.3 % 215,389 19.4 % Retail and local time deposits > $250 14,906 1.3 % 13,541 1.2 % 10,978 1.0 % 10,549 0.9 % 13,882 1.2 % Broker & national time deposits <= $250 0 0.0 % 0 0.0 % 0 0.0 % - 0.0 % - 0.0 % Broker & national time deposits > $250 0 0.0 % 0 0.0 % 0 0.0 % - 0.0 % - 0.0 % Totals $ 246,183 21.6 % $ 210,775 19.0 % $ 234,791 20.4 % $ 220,103 19.2 % $ 229,271 20.6 % PSB Holdings, Inc. Deposit Composition Total Deposits June 30, March 31, December 31, September 30, June 30, (dollars in thousands) 2023 2023 2022 2022 2022 $ % $ % $ % $ % $ % Non-interest bearing demand $ 282,153 24.7 % $ 267,836 24.2 % $ 292,338 25.4 % $ 298,335 26.0 % $ 283,592 25.5 % Interest-bearing demand and savings 332,610 29.1 % 354,218 32.0 % 395,771 34.5 % 377,831 32.9 % 376,150 33.8 % Money market deposits 254,722 22.3 % 238,470 21.5 % 216,073 18.8 % 228,619 19.9 % 226,907 20.4 % Retail and local time deposits <= $250 140,572 12.3 % 136,090 12.3 % 130,205 11.3 % 132,095 11.4 % 136,230 12.1 % Total core deposits 1,010,057 88.4 % 996,614 90.0 % 1,034,387 90.0 % 1,036,880 90.2 % 1,022,879 91.8 % Retail and local time deposits > $250 35,156 3.1 % 30,541 2.8 % 25,478 2.2 % 22,799 2.0 % 26,882 2.4 % Broker & national time deposits <= $250 3,965 0.3 % 5,953 0.5 % 6,451 0.6 % 6,700 0.6 % 7,443 0.7 % Broker & national time deposits > $250 93,956 8.2 % 74,485 6.7 % 82,439 7.2 % 82,439 7.2 % 56,255 5.1 % Totals $ 1,143,134 100.0 % $ 1,107,593 100.0 % $ 1,148,755 100.0 % $ 1,148,818 100.0 % $ 1,113,459 100.0 %
PSB Holdings, Inc. Average Balances ($000) and Interest Rates (dollars in thousands) Quarter ended June 30, 2023 Quarter ended March 31, 2023 Quarter ended June 30, 2022 Average Yield / Average Yield / Average Yield / Balance Interest Rate Balance Interest Rate Balance Interest Rate Assets Interest-earning assets: Loans (1)(2) $ 1,012,105 $ 12,726 5.04 % $ 976,395 $ 11,788 4.90 % $ 917,065 $ 9,305 4.07 % Taxable securities 196,048 1,327 2.71 % 199,705 1,331 2.70 % 205,040 859 1.68 % Tax-exempt securities (2) 81,758 677 3.32 % 81,932 680 3.37 % 79,936 680 3.41 % FHLB stock 5,366 51 3.81 % 3,059 50 6.63 % 2,650 16 2.42 % Other 7,254 94 5.20 % 9,024 98 4.40 % 20,651 36 0.70 % Total (2) 1,302,531 14,875 4.58 % 1,270,115 13,947 4.45 % 1,225,342 10,896 3.57 % Non-interest-earning assets: Cash and due from banks 15,632 17,255 18,731 Premises and equipment, net 13,336 13,332 13,039 Cash surrender value ins 24,530 24,982 24,510 Other assets 23,090 23,193 21,639 Allowance for loan losses (11,756 ) (12,366 ) (12,355 ) Total $ 1,367,363 $ 1,336,511 $ 1,290,906 Liabilities & stockholders’ equity Interest-bearing liabilities: Savings and demand deposits $ 344,435 $ 1,035 1.21 % $ 373,557 $ 1,053 1.14 % $ 379,734 $ 122 0.13 % Money market deposits 243,073 1,189 1.96 % 225,624 830 1.49 % 217,639 121 0.22 % Time deposits 247,007 1,437 2.33 % 245,562 1,106 1.83 % 224,539 352 0.63 % FHLB borrowings 127,441 1,200 3.78 % 68,833 547 3.22 % 62,659 234 1.50 % Other borrowings 5,588 48 3.45 % 10,025 62 2.51 % 5,028 4 0.32 % Senior sub. notes 4,770 58 4.88 % 5,159 62 4.87 % 2,500 28 4.49 % Junior sub. debentures 12,857 242 7.55 % 12,832 234 7.40 % 12,755 179 5.63 % Total 985,171 5,209 2.12 % 941,592 3,894 1.68 % 904,854 1,040 0.46 % Non-interest-bearing liabilities: Demand deposits 263,524 279,348 277,402 Other liabilities 11,906 12,208 10,389 Stockholders’ equity 106,762 103,363 98,261 Total $ 1,367,363 $ 1,336,511 $ 1,290,906 Net interest income $ 9,666 $ 10,053 $ 9,856 Rate spread 2.46 % 2.77 % 3.11 % Net yield on interest-earning assets 2.98 % 3.21 % 3.23 % (1) Nonaccrual loans are included in the daily average loan balances outstanding. (2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21% .
PSB Holdings, Inc. Average Balances ($000) and Interest Rates (dollars in thousands) Six months ended June 30, 2023 Six months ended June 30, 2022 Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Assets Interest-earning assets: Loans (1)(2) $ 994,349 $ 24,514 4.97 % $ 904,232 $ 18,370 4.10 % Taxable securities 197,866 2,658 2.71 % 210,968 1,621 1.55 % Tax-exempt securities (2) 81,844 1,357 3.34 % 83,808 1,354 3.26 % FHLB stock 4,219 101 4.83 % 2,648 50 3.81 % Other 8,143 192 4.75 % 20,326 44 0.44 % Total (2) 1,286,421 28,822 4.52 % 1,221,982 21,439 3.54 % Non-interest-earning assets: Cash and due from banks 16,439 18,366 Premises and equipment, net 13,334 12,886 Cash surrender value ins 24,755 24,436 Other assets 23,139 19,192 Allowance for loan losses (12,016 ) (12,316 ) Total $ 1,352,072 $ 1,284,546 Liabilities & stockholders’ equity Interest-bearing liabilities: Savings and demand deposits $ 358,916 $ 2,088 1.17 % $ 387,952 $ 191 0.10 % Money market deposits 234,044 2,019 1.74 % 217,529 210 0.19 % Time deposits 246,289 2,543 2.08 % 211,557 637 0.61 % FHLB borrowings 98,299 1,747 3.58 % 56,961 403 1.43 % Other borrowings 7,794 110 2.85 % 5,736 6 0.21 % Senior sub. notes 5,030 120 4.81 % 2,500 56 4.52 % Junior sub. debentures 12,844 476 7.47 % 12,742 345 5.46 % Total 963,216 9,103 1.91 % 894,977 1,848 0.42 % Non-interest-bearing liabilities: Demand deposits 271,310 274,598 Other liabilities 12,231 11,400 Stockholders’ equity 105,315 103,571 Total $ 1,352,072 $ 1,284,546 Net interest income $ 19,719 $ 19,591 Rate spread 2.61 % 3.12 % Net yield on interest-earning assets 3.09 % 3.23 % (1) Nonaccrual loans are included in the daily average loan balances outstanding. (2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a tax rate of 21% .
