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PSB Holdings, Inc. Reports First Quarter 2023 Earnings of $0.67 Per Share; Tangible Book Value Increased $1.06 Per Share to $22.43 Per Share; Collateralized Available Liquidity Approaches $600 Million
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PSB Holdings, Inc. Reports First Quarter 2023 Earnings of $0.67 Per Share; Tangible Book Value Increased $1.06 Per Share to $22.43 Per Share; Collateralized Available Liquidity Approaches $600 Million






WAUSAU, Wis., April 24, 2023 (GLOBE NEWSWIRE) — PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported first quarter earnings ending March 31, 2023 of $0.67 per common share on net income of $2.9 million, compared to $0.80 per common share on net income of $3.5 million during the fourth quarter ending December 31, 2022, and $0.75 per common share on net income of $3.3 million during the first quarter ending March 31, 2022.

PSB’s first quarter 2023 operating results reflected the following changes from the fourth quarter of 2022: (1) lower net interest income due to rising deposit and FHLB advance costs; (2) higher mortgage loan servicing income offset by higher salary and benefit costs; (3) lower accumulated other comprehensive loss due to a decline in intermediate interest rates; (4) annualized loan growth of 4.7%; and (5) increased borrowings to fund seasonal business customer and municipal deposit outflows, promote increased on-balance sheet liquidity, and to fund net loan growth.

“Though the first quarter presented challenges with a rapid rise in interest rates, persistent forecasts of a pending recession and highly publicized bank failures, PSB continued its strong performance with a 12.5% return on shareholders’ equity during the first quarter. The combination of an efficient operation and a strong local economy has contributed to solid returns. Because of our balance sheet strength, we have immediate access to nearly $600 million in funds to support our depositors if needed,” stated Scott Cattanach, President and CEO.

March 31, 2023 Highlights:

  • Net interest income decreased to $9.9 million for the quarter ended March 31, 2023, compared to $10.6 million for the quarter ended December 31, 2022, but increased from $9.6 million for the quarter ended March 31, 2022.
  • Provision for loan losses increased to $100,000 for the quarter ended March 31, 2023 after recording no loan loss provision since the first quarter of 2021. The March 31, 2023 provision was related to loan growth of $11.4 million. The impact of the CECL adoption in the quarter was insignificant.
  • Nonninterest income increased to $2.0 million for the quarter ended March 31, 2023 from $1.8 million the previous quarter. The increase largely reflected increased mortgage loan servicing income from recapture of the mortgage servicing right valuation allowance.
  • Noninterest expenses increased $118,000, or 1.5% for the first quarter of 2023 to $7.8 million from $7.7 million the prior quarter. The increase was primarily related to higher salary and benefit costs.
  • Asset quality continued to improve and remained strong. At March 31, 2023, non-performing assets declined to 0.45% of total assets from 1.03% one year earlier.
  • Tangible book value per common share increased 4.7% to $22.43 at March 31, 2023 from $21.37 one quarter earlier. Tangible book value benefited from improved interest rate marks on available for sale securities which reduced the other comprehensive loss by $1.7 million. Return on tangible common equity was 12.51% for the quarter ended March 31, 2023 compared to 15.12% the prior quarter.
  • During the first quarter, PSB repurchased 60,376 shares of its common stock.

Balance Sheet and Asset Quality Review

Total assets increased slightly to $1.36 billion at March 31, 2023, from $1.34 billion at December 31, 2022. Cash and cash equivalents totaled $39.6 million at March 31, 2023 compared to $29.4 million the previous quarter. Investment securities available for sale decreased $1.5 million from maturities and paydowns to $190.7 million at March 31, 2023 from $192.2 million one quarter earlier. Total collateralized liquidity available to meet cash demands was approximately $583 million at March 31, 2023 with an additional $294 million that could be raised in a short timeframe from the brokered CDs market.

Total loans receivable increased $11.4 million to $973.3 million at March 31, 2023, from $961.9 million at December 31, 2022. One-to-four family adjustable rate mortgage loans were added to the portfolio as well as commercial real estate and non-owner occupied construction and land loans. The majority of the Company’s lending activity for the quarter consists of lending on commercial real estate properties. As of March 31, 2023, 13.0% of the total loan portfolio and commitments consisted of multi-family loans followed by 8.5% on industrial production and warehousing real estate loans. Retail sales real estate loans totaled 3.7% of total loans and commitments, hotels totaled 3.3%, and office rental property loans totaled 0.9%. Though the lending pipeline for real estate projects slowed through the winter season, the economic environment in our markets remains healthy and moderate loan origination activity is expected to continue through 2023.

The allowance for loan losses declined slightly to 1.25% of gross loans at March 31, 2023 from 1.26% the prior quarter and included the recovery of reserves related to the adoption of CECL. On January 1, 2023, PSB adopted CECL for determining expected credit losses. At adoption, there was an $87,000 recovery adjustment (reduction) to the allowance for loan losses resulting in an increase to retained earnings as permitted by the adoption accounting rules. Annualized net recoveries to average loans were 0.02% for the first quarter ended March 31, 2023. Non-performing assets declined to 0.45% of total assets at March 31, 2023, compared to 0.48% at December 31, 2022, and 1.03% at March 31, 2022. During the first quarter of 2023, the remaining foreclosed asset was sold.

Total deposits declined 3.6% during the quarter. With the recent rise in interest rates, some depositors shifted existing low cost funds into other higher yield bank products, increasing the cost of funds. Local customers (deposits excluding brokered and national time deposit CDs) declined 3.1% during the March 2023 quarter. However, withdrawals were not a result of customers concerned about FDIC insurance limits in light of recent high profile bank failures. “We carefully examined large customers with deposit outflows and recognized only 6% of large customer outflows related to chasing higher rates at another bank, while approximately 25% of the decline related to seasonal municipal real estate tax activity, and 50% were related to normal business operations, owner distributions, or income tax payments. The manufacturing and health care sector had a strong year in 2022 with business owners making large distributions based on performance, which resulted in some deposit outflow as they shifted commercial deposits to individual deposits,” said Jessica Brown, Senior Vice President and Chief Financial Officer.

The composition of deposits changed during the March 2023 quarter as customers looked for higher deposit rates. At March 31, 2023, money market deposits and retail time deposits increased to 36.6% of deposits, compared to 32.3% at December 31, 2022. The lower-yield demand and savings deposits declined to 56.2% of deposits compared to 59.9% at December 31, 2022. Broker and national time deposits declined to 7.2% of total deposits at March 31, 2023 from 7.8% one quarter earlier. Uninsured and uncollateralized deposits represented 19.0% of total deposits at March 31, 2023 compared to 20.4% at December 31, 2022.

FHLB advances increased to $113.0 million at March 31, 2023, compared to $43.0 million at December 31, 2022, while other borrowings decreased to $5.0 million at March 31, 2023 compared to $13.0 million at December 31, 2022. New FHLB advances were added to support deposit outflows during the quarter as well as to fund loan growth and increase cash on hand for liquidity contingency plans. During the quarter, FHLB funding options carried lower interest rates than brokered CD alternatives.

Tangible stockholder equity as a percent of total tangible assets increased to 7.54% at March 31, 2023, from 7.42% at December 31, 2022.

Tangible net book value per common share was $22.43 at March 31, 2023, compared to $21.37 per common share one quarter earlier. Relative to the prior quarter, accumulated other comprehensive loss declined $1.7 million, which contributed to the book value per share increase. At March 31, 2023, the fair value on all securities (available for sale and held to maturity) was 10.4% less than amortized purchase cost, compared to 11.6% of the amortized purchase cost at December 31, 2022.

Operations Review

Net interest income decreased to $9.9 million (on a net margin of 3.21%) for the first quarter of 2023, compared to $10.6 million (on a net margin of 3.41%) for the fourth quarter of 2022, and $9.6 million (on a net margin of 3.24%) for the first quarter of 2022. Earning asset yields increased 24 basis points to 4.45% during the first quarter of 2023 from 4.21% during the fourth quarter of 2022, while deposit and borrowing costs increased 57 basis points to 1.68% compared to 1.11% during the fourth quarter of 2022.

The increase in earning asset yields was partially due to higher yields on investment securities during the quarter ended March 31, 2023. Taxable security yields increased to 2.70% for the quarter ended March 31, 2023, from 2.45% in the quarter ended December 31, 2022. Loan yields also increased during the first quarter to 4.90% from 4.67% for the fourth quarter of 2022 as loans repriced to higher indices from Federal Reserve and market rate increases and new loans were added to the portfolio.

As interest rates have increased, deposit customers have become more sensitive to deposit products with higher returns. As such, non-interest bearing deposit accounts declined $24.5 million during the quarter to $267.8 million at March 31, 2023 while money market deposits increased $22.3 million to $238.5 million. The overall cost of deposits was 1.06% for the quarter ended March 31, 2023 compared to 0.72% the prior quarter.

Total noninterest income increased for the first quarter of 2023 to $2.0 million from $1.8 million for the fourth quarter of 2022, due primarily to an increase in mortgage loan servicing partially offset by a reduction in investment sales commissions. At March 31, 2023, the Bank serviced $377.6 million in secondary market residential mortgage loans for others.

Noninterest expenses increased slightly to $7.8 million for the first quarter of 2023, compared to $7.7 million for the fourth quarter of 2022. The first quarter of 2023 included higher salaries and employee benefit expenses. Salary and employee benefit expenses were $5.0 million for the first quarter of 2023, compared to $4.7 million for the fourth quarter of 2022.

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 ten full-service banking locations in Marathon, Oneida, Vilas, Milwaukee and Waukesha counties and a loan production office in Stevens Point, Wisconsin. 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.

PSB Holdings, Inc.          
Consolidated Balance Sheets          
March 31, 2023, September 30, June 30, and March 31, 2022, unaudited, December 31, 2022 derived from audited financial statements          
   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, 
(dollars in thousands, except per share data)   2023     2022     2022     2022     2022  
           
Assets          
           
Cash and due from banks $         13,336   $         28,561   $         16,659   $         19,149   $         18,322  
Interest-bearing deposits                 538                   758                 3,267                 3,545                 5,158  
Federal funds sold             25,766                     90               20,751               16,689               14,356  
           
Cash and cash equivalents             39,640               29,409               40,677               39,383               37,836  
Securities available for sale (at fair value)           190,738             192,197             188,425             190,478             289,704  
Securities held to maturity (fair values of $82,610,  $80,926,  $77,467,  $82,567  and        
  $0 respectively)             87,889               87,816               87,993               88,216                     –    
Equity securities               2,070                 2,032                 1,870                 1,781                 1,720  
Bank certificates of deposit (at cost)                   –                       –                       –                     245                   245  
Loans held for sale                   –                       –                       –                     270                     –    
Loans receivable, net           973,270             961,865             936,686             925,260             875,588  
Accrued interest receivable               4,062                 4,006                 3,493                 3,285                 3,219  
Foreclosed assets                   –                     160                   160                   160                 1,103  
Premises and equipment, net             13,406               13,164               13,129               12,981               12,906  
Mortgage servicing rights, net               1,682                 1,610                 1,651                 1,711                 1,770  
Federal Home Loan Bank stock (at cost)               4,620                 2,516                 2,516                 2,646                 2,646  
Cash surrender value of bank-owned life insurance             25,078               24,922               24,765               24,608               24,455  
Core deposit intangible                 348                   382                   415                   449                   487  
Goodwill               2,541                 2,541                 2,541                 2,541                 2,541  
Other assets             14,444               15,069               15,248               13,550               11,725  
           
TOTAL ASSETS $     1,359,788   $     1,337,689   $     1,319,569   $     1,307,564   $     1,265,945  
           
Liabilities          
           
Non-interest-bearing deposits $        267,836   $        292,338   $        298,335   $        283,592   $        272,611  
Interest-bearing deposits           839,757             856,417             850,483             829,867             816,794  
           
Total deposits         1,107,593           1,148,755           1,148,818           1,113,459           1,089,405  
           
Federal Home Loan Bank advances           113,000               43,000               40,000               67,000               47,000  
Other borrowings               5,033               12,985               10,449                 4,601                 4,304  
Senior subordinated notes               4,769                 5,549                 2,500                 2,500                 2,500  
Junior subordinated debentures             12,844               12,819               12,793               12,768               12,742  
Accrued expenses and other liabilities             11,338               12,639               10,114               10,938               10,208  
           
Total liabilities         1,254,577           1,235,747           1,224,674           1,211,266           1,166,159  
           
Stockholders’ equity          
           
Preferred stock – no par value:          
Authorized – 30,000 shares;  Issued – 7,200 shares          
Outstanding – 7,200, 7,200, 0, 0, and 0 shares, respectively               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 – 4,241,501,  4,297,279,  4,414,651,  4,423,037  and           
4,434,840 shares, respectively               1,830                 1,830                 1,830                 1,830                 1,830  
Additional paid-in capital               8,311                 8,300                 8,294                 8,238                 8,183  
Retained earnings           128,968             126,003             123,559             120,043             117,957  
Accumulated other comprehensive income (loss), net of tax            (22,515 )            (24,220 )            (24,200 )            (19,423 )            (14,097 )
Treasury stock, at cost – 1,249,297,  1,193,519,  1,076,147,  1,067,761  and          
1,055,958  shares, respectively            (18,583 )            (17,171 )            (14,588 )            (14,390 )            (14,087 )
           
Total stockholders’ equity           105,211             101,942               94,895               96,298               99,786  
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $     1,359,788   $     1,337,689   $     1,319,569   $     1,307,564   $     1,265,945  
           

 

PSB Holdings, Inc.          
Consolidated Statements of Income          
                      Quarter Ended  
(dollars in thousands, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
except per share data – unaudited)   2023     2022   2022   2022   2022  
           
Interest and dividend income:          
Loans, including fees $      11,773   $      11,251 $      10,225 $        9,295 $        9,054  
Securities:          
Taxable           1,331             1,218              978              859              762  
Tax-exempt              537                539              540              537              533  
Other interest and dividends              148                141              163                52                42  
           
Total interest and dividend income          13,789            13,149          11,906          10,743          10,391  
           
Interest expense:          
Deposits           2,989             2,060           1,341              595              443  
FHLB advances              547                167              209              234              169  
Other borrowings                62                  38                14                 4                 2  
Senior subordinated notes                62                  55                28                28                28  
Junior subordinated debentures              234                224              202              179              166  
           
Total interest expense           3,894             2,544           1,794           1,040              808  
           
Net interest income           9,895            10,605          10,112           9,703           9,583  
Provision for loan losses              100                  –                  –                  –                  –    
           
Net interest income after provision for loan losses           9,795            10,605          10,112           9,703           9,583  
           
Noninterest income:          
Service fees              361                381              409              392              388  
Gain on sale of mortgage loans                27                  56                98              182              277  
Mortgage loan servicing, net              298                179              130              117              176  
Investment and insurance sales commissions              365                498              357              404              456  
Increase in cash surrender value of life insurance              157                157              157              152              150  
Other noninterest income              742                553              558              686              531  
           
Total noninterest income           1,950             1,824           1,709           1,933           1,978  
           
Noninterest expense:          
Salaries and employee benefits           5,006             4,700           4,302           4,548           4,390  
Occupancy and facilities              699                641              687              629              665  
Loss (gain) on foreclosed assets              (50 )                 2                 4                –                  (6 )
Data processing and other office operations              880                910              906              912              861  
Advertising and promotion              162                180              185              173              152  
Core deposit intangible amortization                34                  34                34                38                47  
Other noninterest expenses           1,073             1,219           1,069           1,151           1,083  
           
Total noninterest expense           7,804             7,686           7,187           7,451           7,192  
           
Income before provision for income taxes           3,941             4,743           4,634           4,185           4,369  
Provision for income taxes              941             1,143           1,119              993           1,039  
           
Net income $        3,000   $        3,600 $        3,515 $        3,192 $        3,330  
           
Preferred stock dividends declared $          122   $            81 $            –   $            –   $            –    
Net income available to common shareholders $        2,878   $        3,519 $        3,515 $        3,192 $        3,330  
Basic earnings per common share $         0.67   $         0.80 $         0.80 $         0.72 $         0.75  
Diluted earnings per common share $         0.67   $         0.80 $         0.80 $         0.72 $         0.75  
           

 

PSB Holdings, Inc.          
Quarterly Financial Summary          
(dollars in thousands, except per share data) Quarter ended
    Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
Earnings and dividends:   2023     2022     2022     2022     2022  
             
  Interest income $              13,789   $          13,149   $          11,906   $         10,743   $          10,391  
  Interest expense $                3,894   $            2,544   $            1,794   $           1,040   $               808  
  Net interest income $                9,895   $          10,605   $          10,112   $           9,703   $            9,583  
  Provision for loan losses $                   100   $                  –     $                  –     $                 –     $                  –    
  Other noninterest income $                1,950   $            1,824   $            1,709   $           1,933   $            1,978  
  Other noninterest expense $                7,804   $            7,686   $            7,187   $           7,451   $            7,192  
  Net income available to common shareholders $                2,878   $            3,519   $            3,515   $           3,192   $            3,330  
             
  Basic earnings per common share (3) $                  0.67   $              0.80   $              0.80   $             0.72   $              0.75  
  Diluted earnings per common share (3) $                  0.67   $              0.80   $              0.80   $             0.72   $              0.75  
  Dividends declared per common share (3) $                     –     $              0.25   $                  –     $             0.25   $                  –    
  Tangible net book value per common share (4) $                22.43   $            21.37   $            20.83   $           21.10   $            21.82  
             
  Semi-annual dividend payout ratio n/a   15.27 % n/a   16.96 % n/a
  Average common shares outstanding             4,275,160           4,377,330           4,419,421          4,428,939           4,433,375  
             
Balance sheet – average balances:          
             
  Loans receivable, net of allowances for loss $            964,030   $        945,551   $        931,344   $       904,710   $        878,979  
  Assets $         1,336,512   $     1,321,776   $     1,323,400   $    1,290,906   $     1,278,565  
  Deposits $         1,124,091   $     1,146,066   $     1,141,784   $    1,099,314   $     1,084,814  
  Stockholders’ equity $            103,364   $        100,037   $          98,630   $         98,261   $        108,803  
             
Performance ratios:          
             
  Return on average assets (1)   0.87 %   1.06 %   1.05 %   0.99 %   1.06 %
  Return on average stockholders’ equity (1)   11.29 %   13.96 %   14.14 %   13.03 %   12.41 %
  Return on average tangible common          
  stockholders’ equity (1) (4)   12.51 %   15.12 %   14.58 %   13.29 %   12.49 %
  Net loan charge-offs to average loans (1)   -0.02 %   0.03 %   0.01 %   -0.02 %   -0.05 %
  Nonperforming loans to gross loans   0.62 %   0.64 %   1.16 %   1.21 %   1.34 %
  Nonperforming assets to total assets   0.45 %   0.48 %   0.85 %   0.88 %   1.03 %
  Allowances for loan losses to gross loans   1.25 %   1.26 %   1.30 %   1.32 %   1.39 %
  Nonperforming assets to tangible equity          
  plus the allowance for loan losses (4)   5.80 %   6.22 %   10.89 %   11.04 %   12.10 %
  Net interest rate margin (1)(2)   3.21 %   3.41 %   3.24 %   3.23 %   3.24 %
  Net interest rate spread (1)(2)   2.77 %   3.10 %   3.04 %   3.11 %   3.14 %
  Service fee revenue as a percent of          
  average demand deposits (1)   0.52 %   0.50 %   0.56 %   0.57 %   0.58 %
  Noninterest income as a percent          
  of gross revenue   12.39 %   12.18 %   12.55 %   15.25 %   15.99 %
  Efficiency ratio (2)   65.02 %   61.06 %   60.02 %   63.20 %   61.40 %
  Noninterest expenses to average assets (1)   2.37 %   2.31 %   2.15 %   2.32 %   2.28 %
  Average stockholders’ equity less accumulated          
  other comprehensive income (loss) to          
  average assets   9.32 %   9.23 %   8.95 %   8.80 %   8.99 %
  Tangible equity to tangible assets (4)   7.54 %   7.42 %   6.98 %   7.15 %   7.66 %
             
Stock price information:          
             
  High $ 25.75   $ 22.74   $ 23.94   $           26.35   $            26.45  
  Low $ 20.00   $ 21.50   $ 22.50   $           22.82   $            25.80  
  Last trade value at quarter-end $ 21.15   $ 21.90   $ 22.50   $           23.50   $            26.00  
             
(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
      Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
(dollars in thousands – unaudited)   2023     2022     2022     2022     2022  
               
Net income $       3,000   $ 3,600   $ 3,515   $ 3,192   $ 3,330  
               
Other comprehensive income, net of tax:          
               
  Unrealized gain (loss) on securities available          
    for sale   1,601              (116 )          (4,915 )   (5,573 )   (14,847 )
               
  Amortization of unrealized loss included in net          
    income on securities available for sale          
    transferred to securities held to maturity   129                 93                 92     176                  –    
               
  Unrealized gain (loss) on interest rate swap   (1 )               11                 32     43     85  
               
  Reclassification adjustment of interest rate          
    swap settlements included in earnings   (24 )                (8 )               13     28     37  
               
               
Other comprehensive income (loss)   1,705                (20 )          (4,778 )   (5,326 )   (14,725 )
               
Comprehensive income (loss) $ 4,705   $       3,580   $      (1,263 ) $ (2,134 ) $ (11,395 )
               

 

PSB Holdings, Inc.          
Nonperforming Assets as of:          
  Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
(dollars in thousands)   2023     2022     2022     2022     2022  
       
Nonaccrual loans (excluding restructured loans) $        5,773   $ 5,879   $ 6,048   $        6,036   $        6,537  
Nonaccrual restructured loans                57     62     70                146                170  
Restructured loans not on nonaccrual              265     270     4,904             5,137             5,172  
Accruing loans past due 90 days or more                –       –       –                    –                    –    
           
Total nonperforming loans           6,095     6,211     11,022            11,319            11,879  
Other real estate owned                –       160     160                160             1,103  
           
Total nonperforming assets $        6,095   $ 6,371   $ 11,182   $      11,479   $      12,982  
           
Nonperforming loans as a % of gross loans receivable   0.62 %   0.64 %   1.16 %   1.21 %   1.34 %
Total nonperforming assets as a % of total assets   0.45 %   0.48 %   0.85 %   0.88 %   1.03 %
Allowance for loan losses as a % of nonperforming loans   190.21 %   197.92 %   112.28 %   109.48 %   103.89 %
           

 

PSB Holdings, Inc.      
Nonperforming Assets >= $500,000 net book value before specific reserves    
At March 31, 2023      
(dollars in thousands)      
    Gross Specific
Collateral Description Asset Type Principal Reserves
       
Real estate – Buffet Style Restaurant Nonaccrual $             2,873   $             1,123  
Real estate – Independent Auto Repair Nonaccrual                   762     71  
Total listed nonperforming assets   $             3,635   $             1,194  
Total bank wide nonperforming assets   $             6,095   $             1,472  
Listed assets as a % of total nonperforming assets     60 %   81 %
       
       

 

PSB Holding, Inc.          
Loan Composition by Purpose          
Quarter-ended (dollars in thousands) Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
           
Residential real estate:          
           
One to four family $    187,325   $    182,688   $    172,913   $    169,437   $    168,083  
HELOC loans   18,141     17,625     18,423     17,776     16,709  
Residential construction & development   22,014     20,698     22,313     22,462     21,590  
Residential vacant land   1,223     1,414     3,069     1,599     1,697  
           
Total Residential real estate        228,703          222,425          216,718          211,274          208,079  
           
Commercial/Agricultural real estate:          
           
Owner occupied          
Commercial real estate    237,217     220,374     211,008     205,976          208,271  
SBA commercial real estate   2,112     2,514     2,616     2,458             2,530  
Agriculture real estate   3,681     3,835     3,902     3,583             3,651  
Construction and land development   2,825     22,330     32,158     31,465            26,111  
Commercial vacant land   6,712     7,291     5,214     5,351             5,194  
           
Total Owner occupied        252,547          256,344          254,898          248,833          245,757  
           
Non-owner occupied          
Commercial real estate   226,280     228,761     225,823     227,400          212,407  
One to four family residential rental   65,673     64,764     66,224     61,749            56,305  
Construction and land development   41,272     27,253     25,543     25,086            23,080  
Commercial vacant land   3,928     3,862     4,010     4,287             4,191  
           
Total Non-owner occupied        337,153          324,640          321,600          318,522          295,983  
           
Commercial/Agricultural non-real estate:          
           
Municipal non-real estate   6,430     9,915     7,133     6,352             6,403  
Commercial line   57,727     63,173     56,154     65,728            54,626  
Other commercial non-real estate   92,419     87,535     82,430     76,065            64,260  
SBA commercial non-real estate   3,997     3,533     3,378     3,926             6,068  
Agricultural non-real estate   1,250     1,290     1,491     1,409             1,340  
           
Total Commercial/Agr. non-real estate        161,823          165,446          150,586          153,480          132,697  
           
Consumer non-real estate:          
           
Consumer installment   3,357     4,072     4,005     4,305             4,201  
Consumer line   529     382     494     493                486  
Other consumer   108     115     116     123                118  
           
Total Consumer non-real estate           3,994             4,569             4,615             4,921             4,805  
           
Gross loans        984,220          973,424          948,417          937,030          887,321  
Net deferred loan costs (fees)   542                573                537                503                423  
Overdrafts   101                160                107                119                185  
Allowance for loan losses   (11,593 )        (12,293 )        (12,375 )        (12,392 )        (12,341 )
           
Total loans receivable $    973,270   $    961,864   $    936,686   $    925,260   $    875,588  
           

 

PSB Holding, Inc.                            
Commercial Real Estate Loans by Purpose  
  Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
 (dollars in thousands) 2023   2022   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 $121,559 13.0%   $120,232 13.1%   $141,414 15.6%   $143,074 15.7%   $122,169 14.6%
Industrial and Warehousing $78,934 8.5%   $76,536 8.3%   $83,033 9.1%   $79,073 8.7%   $74,228 8.9%
Retail $34,427 3.7%   $32,587 3.5%   $39,279 4.3%   $39,013 4.3%   $36,069 4.3%
Hotels  $31,069 3.3%   $32,940 3.6%   $26,958 3.0%   $26,948 3.0%   $29,281 3.5%
Office $8,544 0.9%   $8,652 0.9%   $8,758 1.0%   $8,862 1.0%   $8,964 1.1%
 
(1) Percentage of portfolio and commitments.  

 

PSB Holdings, Inc.                    
Deposit Composition – Insured and Collateralized Deposits            
                   
  March 31, December 31, September 30, June 30, March 31,
(dollars in thousands)   2023   2022   2022   2022   2022
  $ % $ % $ % $ % $ %
                   
Non-interest bearing demand $ 205,350 18.5% $      203,115 17.7% $      216,117 18.8% $      207,852 18.7% $      209,115 19.2%
Interest-bearing demand and savings   329,364 29.7%          345,854 30.1%          348,989 30.4%          331,034 29.7%          347,652 31.9%
Money market deposits   128,575 11.6%          131,400 11.4%          130,125 11.3%          132,374 11.9%          133,202 12.2%
Retail and local time deposits <= $250   136,090 12.3%          130,205 11.3%          132,095 11.5%          136,230 12.2%          138,821 12.7%
                     
Total core deposits   799,379 72.2%   810,574 70.6%   827,326 72.0%   807,490 72.5%   828,790 76.1%
Retail and local time deposits > $250   17,000 1.5%   14,500 1.3%           12,250 1.1%           13,000 1.2%           13,250 1.2%
Broker & national time deposits <= $250   5,953 0.5%             6,451 0.6%             6,700 0.6%             7,443 0.7%             7,443 0.7%
Broker & national time deposits > $250   74,485 6.7%   82,439 7.2%           82,439 7.2%           56,255 5.1%           36,965 3.4%
                     
Totals $ 896,817 81.0% $ 913,964 79.6% $ 928,715 80.8% $ 884,188 79.4% $ 886,448 81.4%
                    
PSB Holdings, Inc.                  
Deposit Composition – Uninsured and Uncollateralized Deposits            
                   
  March 31, December 31, September 30, June 30, March 31,
(dollars in thousands)   2023   2022   2022   2022   2022
  $ % $ % $ % $ % $ %
                   
Non-interest bearing demand $ 62,487 5.6% $        89,223 7.8% $        82,219 7.2% $        75,740 6.8% $        63,496 5.8%
Interest-bearing demand and savings   24,854 2.2%           49,917 4.3%           28,842 2.5%           45,116 4.1%           35,177 3.2%
Money market deposits   109,894 9.9%           84,673 7.4%           98,493 8.6%           94,533 8.5%           88,780 8.1%
Retail and local time deposits <= $250   0 0.0%   0 0.0%                  –   0.0%                  –   0.0%                  –   0.0%
                     
Total core deposits   197,235 17.8%   223,813 19.5%   209,554 18.2%   215,389 19.3%   187,453 17.2%
Retail and local time deposits > $250   13,541 1.2%           10,978 1.0%           10,549 0.9%           13,882 1.2%           15,504 1.4%
Broker & national time deposits <= $250   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%
                     
Totals $ 210,776 19.0% $ 234,791 20.4% $ 220,103 19.2% $ 229,271 20.6% $ 202,957 18.6%
     
     
PSB Holdings, Inc.                  
Deposit Composition – Total Deposits                
                   
  March 31, December 31, September 30, June 30, March 31,
(dollars in thousands)   2023   2022   2022   2022   2022
  $ % $ % $ % $ % $ %
                   
Non-interest bearing demand $ 267,836 24.2% $      292,338 25.4% $      298,335 26.0% $      283,592 25.5% $      272,611 25.0%
Interest-bearing demand and savings   354,218 32.0%          395,771 34.5%          377,831 32.9%          376,150 33.8%          382,829 35.1%
Money market deposits   238,470 21.5%          216,073 18.8%          228,619 19.9%          226,907 20.4%          221,982 20.4%
Retail and local time deposits <= $250   136,090 12.3%          130,205 11.3%          132,095 11.5%          136,230 12.2%          138,821 12.7%
                     
Total core deposits   996,614 90.0%   1,034,387 90.0%       1,036,880 90.3%       1,022,879 91.9%       1,016,243 93.3%
Retail and local time deposits > $250   30,541 2.8%           25,478 2.2%           22,799 2.0%           26,882 2.4%           28,754 2.6%
Broker & national time deposits <= $250   5,953 0.5%             6,451 0.6%             6,700 0.6%             7,443 0.7%             7,443 0.7%
Broker & national time deposits > $250   74,485 6.7%           82,439 7.2%           82,439 7.2%           56,255 5.1%           36,965 3.4%
                     
Totals $ 1,107,593 100.0% $ 1,148,755 100.0% $   1,148,818 100.0% $   1,113,459 100.0% $   1,089,405 100.0%
 

 

PSB Holdings, Inc.                      
Average Balances ($000) and Interest Rates                  
(dollars in thousands)                      
                         
                         
     Quarter ended March 31, 2023     Quarter ended December 31, 2022     Quarter ended March 31, 2022 
     Average    Yield /    Average    Yield /    Average    Yield /
     Balance   Interest  Rate    Balance   Interest  Rate    Balance   Interest  Rate
Assets                      
Interest-earning assets:                      
Loans (1)(2) $      976,395   $        11,788 4.90%   $      957,926   $        11,266 4.67%   $      891,257   $          9,065 4.12%
Taxable securities          199,705                1,331 2.70%            197,070                1,218 2.45%            216,965                   762 1.42%
Tax-exempt securities (2)            81,932                   680 3.37%              82,074                   682 3.30%              87,719                   675 3.12%
FHLB stock              3,059                     50 6.63%                2,516                     32 5.05%                2,646                     34 5.21%
Other              9,024                     98 4.40%              14,131                   109 3.06%              20,448                       8 0.16%
                         
Total (2)       1,270,115              13,947 4.45%         1,253,717              13,307 4.21%         1,219,035              10,544 3.51%
                         
Non-interest-earning assets:                      
Cash and due from banks            17,255                    18,941                    17,996      
Premises and equipment,                      
net            13,332                    13,123                    12,732      
Cash surrender value ins            24,982                    24,822                    24,361      
Other assets            23,193                    23,548                    16,719      
Allowance for loan                      
losses          (12,366 )                (12,375 )                (12,278 )    
                         
Total $   1,336,511         $   1,321,776         $   1,278,565      
                         
Liabilities & stockholders’ equity                    
Interest-bearing liabilities:                      
Savings and demand                      
deposits $      373,557   $          1,053 1.14%   $      376,075   $             690 0.73%   $      396,261   $               69 0.07%
Money market deposits          225,624                   830 1.49%            224,701                   601 1.06%            218,367                     89 0.17%
Time deposits          245,562                1,106 1.83%            241,290                   769 1.26%            198,431                   285 0.58%
FHLB borrowings            68,833                   547 3.22%              35,522                   167 1.87%              51,200                   169 1.34%
Other borrowings            10,025                     62 2.51%              11,307                     38 1.33%                6,452                       2 0.13%
  Senior sub. notes              5,159                     62 4.87%                4,522                     55 4.83%                2,500                     28 4.54%
Junior sub. debentures            12,832                   234 7.40%              12,806                   224 6.94%              12,730                   166 5.29%
                         
Total          941,592                3,894 1.68%            906,223                2,544 1.11%            885,941                   808 0.37%
                         
Non-interest-bearing liabilities:                    
Demand deposits          279,348                  304,000                  271,755      
Other liabilities            12,208                    11,516                    12,066      
Stockholders’ equity          103,363                  100,037                  108,803      
                         
Total $   1,336,511         $   1,321,776         $   1,278,565      
                         
Net interest income   $        10,053       $        10,763       $          9,736  
Rate spread     2.77%       3.10%       3.14%
Net yield on interest-earning assets   3.21%       3.41%       3.24%
                         
(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%.        

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