WAUSAU, Wis., Oct. 25, 2023 (GLOBE NEWSWIRE) — PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported third quarter earnings ending September 30, 2023 of $0.29 per common share on net income of $1.2 million, compared to $0.64 per common share on net income of $2.7 million during the second quarter ending June 30, 2023, and $0.80 per common share on net income of $3.5 million during the third quarter ending September 30, 2022.
On July 5th, Wisconsin signed into law, and effective January 1, 2023, an interest exemption for financial institutions that lend to Wisconsin commercial borrowers. The change is expected to reduce or eliminate PSB’s state tax expense going forward. However, the current quarter includes cumulative adjustments to deferred tax assets to reflect the new tax law. As a result of this tax regulation change, PSB reversed $1.2 million in income tax expense which had been recorded during the first two quarters of 2023, which increased net income. However, PSB also provided an allowance against Wisconsin deferred tax assets, including those assets related to accumulated other comprehensive income, which increased income tax expense $2.8 million, which lowered net income. Before the cumulative impacts of the Wisconsin income tax regulation change, proforma September 2023 quarterly net income would have been approximately $2.8 million, or $0.66 per common share.
Other impacts to PSB’s third quarter 2023 operating results reflected the following changes from the second quarter of 2023: (1) higher tax expense related to recognition of taxes deferred prior to a change in Wisconsin tax law that eliminated state taxes on certain qualified assets; (2) higher net interest income due to a larger loan balance and rising yields on loans; (3) lower non-interest income due to second quarter income from life insurance death benefit; (4) lower non-interest expense related to lower salary and benefit expenses; (5) higher accumulated other comprehensive loss due to an increase in intermediate interest rates; (6) strong loan growth of $50 million supported by core deposit growth of $24 million; (7) an improved efficiency ratio; and (8) lower non-performing assets.
“Our net interest income continues to grow despite pressures from rising interest rates. Loan growth continued in the third quarter as the economic environment within our markets remains healthy. We have added new commercial borrowers to our portfolio which has helped attract lower costing deposit relationships, thereby reducing the need for higher costing borrowings and brokered deposits. Additionally, we have recently ramped up our internal capacity to deliver SBA 7(a) loans in an efficient manner which will allow us to fully leverage our SBA Preferred Lender status in markets that we serve,” stated Scott Cattanach, President and CEO. “Despite the quarter’s negative impacts related to deferred tax assets, Wisconsin’s state tax changes are expected to eliminate our state income tax, reducing our effective tax rate on future earnings by approximately 6%.”
September 30, 2023, Highlights:
- Net interest income increased to $9.6 million for the quarter ended September 30, 2023, compared to $9.5 million for the quarter ended June 30, 2023, due to a larger loan portfolio with the addition of higher yielding loans and repricing of interest sensitive assets.
- Loans increased $49.7 million in the third quarter ended September 30, 2023 to $1.1 billion. The largest increase in the loan portfolio consisted of growth in non-owner occupied commercial real estate and one-to-four family residential rental loans.
- Tangible book value per common share was to $22.25 at September 30, 2023 compared to $22.64 one quarter earlier. For the third quarter ended September 30, 2023, tangible book value was positively influenced by net income and intangible asset amortization, offset by higher accumulated other comprehensive loss. The AOCI loss reflected adjustments on the available for sale securities portfolio due to higher interest rates and a lower tax rate. A lower state tax was associated with a change in Wisconsin state tax law which provides for no state tax on income from commercial loans with original balances less than $5.0 million to Wisconsin borrowers.
- Return on tangible common equity was 5.09% for the quarter ended September 30, 2023 compared to 11.14% the prior quarter. The lower return primarily related to higher tax expenses on adoption of Wisconsin state tax law changes.
- Provision for loan losses was $150,000 for the quarter ended September 30, 2023. The provision for the third quarter was largely related to new loan growth.
- Noninterest income was $1.7 million for the quarter ended September 30, 2023 compared to $2.0 million the prior quarter. The prior quarter included a life insurance benefit of $0.5 million.
- Noninterest expenses decreased $479,000 in the third quarter of 2023 to $7.5 million from $7.9 million the prior quarter. The decrease was primarily related to lower salary and benefit expenses.
Balance Sheet and Asset Quality Review
Total assets increased slightly to $1.44 billion at September 30, 2023, from $1.42 billion at June 30, 2023. Cash and cash equivalents decreased $23.1 million, to $21.3 million at September 30, 2023 compared to $44.4 million the previous quarter. The lower cash and cash equivalent level reflects the use of funds to fund loan growth and reduce borrowings. Investment securities available for sale decreased $6.5 million from maturities and lower fair values to $160.9 million at September 30, 2023 from $167.4 million one quarter earlier. Total collateralized liquidity available to meet cash demands was approximately $350 million at September 30, 2023 with an additional $300 million that could be raised in a short timeframe from the brokered CDs market.
Total loans receivable increased $49.7 million to $1.10 billion at September 30, 2023, from $1.05 billion at June 30, 2023. Over the past year, total loans increased 17.2%. Non-owner occupied loans were the largest addition to the loan portfolio during the most recent quarter, which included commercial real estate, one-to-four family residential rentals and land loans. Total non-owner occupied commercial real estate loans increased $23.4 million, to $263.4 million at September 30, 2023, from $240.0 million the prior quarter. One-to-four family residential rental loans increased $19.0 million from the prior quarter to $86.8 million, while non-owner occupied land loans increased $10.0 million to $20.4 million. The loan portfolio remains well diversified with non-owner occupied commercial loans totaling 37.5% of gross loans followed by owner occupied commercial loans at 23.1% of gross loans. Residential real estate loans decreased to 21.7% of gross loans at September 30, 2023 from 22.5% one quarter earlier. Currently, the lending pipeline is expected to slow from the third quarter pace through the remainder of 2023.
The allowance for loan losses declined slightly to 1.15% of gross loans at September 30, 2023 from 1.19% the prior quarter. Annualized net charge-offs to average loans were zero for the third quarter ended September 30, 2023 compared to net recoveries of 0.07% the prior quarter. Non-performing assets declined to 0.42% of total assets at September 30, 2023 from 0.45% the previous quarter. For the third consecutive quarter, the Bank did not own any foreclosed real estate.
Total deposits increased $29.1 million, or 2.5%, to $1.17 billion at September 30, 2023. Much of the deposit increase was money market deposits (up $14.8 million) and retail jumbo time deposits (up $11.7 million). Meanwhile, brokered deposits decreased $6.1 million and represented 7.9% of total deposits at September 30, 2023 compared to 8.5% one quarter earlier.
The composition of deposits continued to change during the third quarter of 2023 as customers continue to seek higher deposit rates. At September 30, 2023, money market deposits and retail time deposits increased to 39.2% of deposits, compared to 37.7% at June 30, 2023. Lower-yield demand and savings deposits declined to 52.9% of deposits compared to 53.8% at June 30, 2023. Uninsured and uncollateralized deposits represented 22.2% of total deposits at September 30, 2023 compared to 21.6% at June 30, 2023.
FHLB advances decreased to $128.0 million at September 30, 2023 compared to $133.0 million at June 30, 2023. FHLB advances were reduced as liquidity contingency plans were relaxed from elevated levels surrounding multiple nationally publicized bank failures earlier in the year. Other borrowings remained at $5.7 million at September 30, 2023.
Tangible stockholder equity as a percent of total tangible assets was 6.98% at September 30, 2023, compared to 7.22% at June 30, 2023.
Tangible net book value per common share was $22.25 at September 30, 2023, compared to $22.64 per common share one quarter earlier. Relative to the prior quarter, accumulated other comprehensive loss increased $2.9 million. Higher interest rates decreased the market value on the available for sale securities portfolio.
Operations Review
Net interest income increased to $9.6 million (on a net margin of 2.88%) for the third quarter of 2023, compared to $9.5 million (on a net margin of 2.98%) for the second quarter of 2023, and $10.1 million (on a net margin of 3.24%) for the third quarter of 2022. Earning asset yields increased 20 basis points to 4.78% during the third quarter of 2023 from 4.58% during the second quarter of 2023, while deposit and borrowing costs increased 39 basis points to 2.51% compared to 2.12% during the second quarter of 2023.
The increase in earning asset yields was primarily due to higher yields on loans during the quarter. Taxable security yields were 2.55% for the quarter ended September 30, 2023, compared to 2.71% for the quarter ended June 30, 2023. Loan yields increased during the second quarter to 5.23% from 5.04% for the second quarter of 2023 as new loans were added to the portfolio and existing loans repriced to higher indices from market rate increases. During the third quarter, the average yield of new money loans was 7.14%.
Rising deposit costs for savings and demand deposits, money market deposits, time deposits and FHLB advances were responsible for the rise in the Bank’s cost of funds. The overall cost of deposits was 1.66% for the quarter ended September 30, 2023 compared to 1.33% the prior quarter. FHLB advance costs rose to 3.90% during the third quarter ended September 30, 2023 from 3.78% the prior quarter.
Total noninterest income decreased for the third quarter of 2023 to $1.68 million, from $1.98 million for the second quarter of 2023, due primarily to the payment of a life insurance death benefit realized during the second quarter of $533,000. The Bank is an SBA Preferred Lender. During the third quarter, the Bank realized $138,000 in gains on the sale of SBA 7(a) loans. At September 30, 2023, the Bank serviced $370.1 million in secondary market residential mortgage loans for others which provides fee income. Total mortgage banking income was $345,000 for the quarter ended September 30, 2023 compared to $311,000 for the quarter ended June 30, 2023. During the September 2023 quarter, we changed our Broker/Dealer platform for wealth management and added a senior advisor expected to lift commission revenue over the next several quarters.
Noninterest expenses decreased to $7.5 million for the third quarter of 2023, compared to $7.9 million for the second quarter of 2023. The third quarter of 2023 included lower salary and benefit expenses relative to the prior quarter, impacted by the right sizing of the residential mortgage banking business.
The current Wisconsin state budget, signed by Governor Evers on July 5, 2023, included a provision offering an income tax exclusion on income earned from commercial loans of $5 million or less, originated for business or agricultural purposes to borrowers who reside or are located in the state of Wisconsin. This exclusion is retroactive to January 1, 2023. A one-time tax expense of $1.6 million was realized during the third quarter due to the change in Wisconsin tax.
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 eleven 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.
Investor Relations Contact
PSB Holdings, Inc.
1905 Stewart Avenue
Wausau, WI 54401
888.929.9902
InvestorRelations@bankpeoples.com
| PSB Holdings, Inc. | |||||||||||||||
| Consolidated Balance Sheets | |||||||||||||||
| September 30, June 30, and March 31, 2023, September 30, 2022, unaudited, December 31, 2022 derived from audited financial statements | |||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | |||||||||||
| (dollars in thousands, except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 12,881 | $ | 27,409 | $ | 13,336 | $ | 28,561 | $ | 16,659 | |||||
| Interest-bearing deposits | 668 | 892 | 538 | 758 | 3,267 | ||||||||||
| Federal funds sold | 7,764 | 16,138 | 25,766 | 90 | 20,751 | ||||||||||
| Cash and cash equivalents | 21,313 | 44,439 | 39,640 | 29,409 | 40,677 | ||||||||||
| Securities available for sale (at fair value) | 160,883 | 167,382 | 190,738 | 192,197 | 188,425 | ||||||||||
| Securities held to maturity (fair values of $75,236, $81,489, $82,610, $80,926 and | |||||||||||||||
| $77,467 respectively | 86,908 | 87,335 | 87,889 | 87,816 | 87,993 | ||||||||||
| Equity securities | 2,273 | 2,178 | 2,070 | 2,032 | 1,870 | ||||||||||
| Loans held for sale | 971 | 151 | – | – | – | ||||||||||
| Loans receivable, net | 1,098,019 | 1,048,322 | 973,270 | 961,865 | 936,686 | ||||||||||
| Accrued interest receivable | 4,716 | 4,274 | 4,062 | 4,006 | 3,493 | ||||||||||
| Foreclosed assets | – | – | – | 160 | 160 | ||||||||||
| Premises and equipment, net | 13,242 | 13,256 | 13,406 | 13,164 | 13,129 | ||||||||||
| Mortgage servicing rights, net | 1,684 | 1,666 | 1,682 | 1,610 | 1,651 | ||||||||||
| Federal Home Loan Bank stock (at cost) | 6,373 | 6,359 | 4,620 | 2,516 | 2,516 | ||||||||||
| Cash surrender value of bank-owned life insurance | 23,931 | 23,776 | 25,078 | 24,922 | 24,765 | ||||||||||
| Core deposit intangible | 297 | 321 | 348 | 382 | 415 | ||||||||||
| Goodwill | 2,541 | 2,541 | 2,541 | 2,541 | 2,541 | ||||||||||
| Other assets | 14,094 | 14,933 | 14,444 | 15,069 | 15,248 | ||||||||||
| TOTAL ASSETS | $ | 1,437,245 | $ | 1,416,933 | $ | 1,359,788 | $ | 1,337,689 | $ | 1,319,569 | |||||
| Liabilities | |||||||||||||||
| Non-interest-bearing deposits | $ | 288,765 | $ | 282,153 | $ | 267,836 | $ | 292,338 | $ | 298,335 | |||||
| Interest-bearing deposits | 883,474 | 860,981 | 839,757 | 856,417 | 850,483 | ||||||||||
| Total deposits | 1,172,239 | 1,143,134 | 1,107,593 | 1,148,755 | 1,148,818 | ||||||||||
| Federal Home Loan Bank advances | 128,000 | 133,000 | 113,000 | 43,000 | 40,000 | ||||||||||
| Other borrowings | 5,660 | 5,730 | 5,033 | 12,985 | 10,449 | ||||||||||
| Senior subordinated notes | 4,772 | 4,771 | 4,769 | 5,549 | 2,500 | ||||||||||
| Junior subordinated debentures | 12,896 | 12,870 | 12,844 | 12,819 | 12,793 | ||||||||||
| Accrued expenses and other liabilities | 10,770 | 12,495 | 11,338 | 12,639 | 10,114 | ||||||||||
| Total liabilities | 1,334,337 | 1,312,000 | 1,254,577 | 1,235,747 | 1,224,674 | ||||||||||
| Stockholders’ equity | |||||||||||||||
| Preferred stock – no par value: | |||||||||||||||
| Authorized – 30,000 shares; no shares issued or outstanding | |||||||||||||||
| Outstanding – 7,200, 7,200, 7,200, 7,200, and 0 shares, respectively | 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 – 4,174,197, 4,190,252, 4,241,501, 4,297,279 and | |||||||||||||||
| 4,414,651 shares, respectively | 1,830 | 1,830 | 1,830 | 1,830 | 1,830 | ||||||||||
| Additional paid-in capital | 8,421 | 8,382 | 8,311 | 8,300 | 8,294 | ||||||||||
| Retained earnings | 131,624 | 130,396 | 128,968 | 126,003 | 123,559 | ||||||||||
| Accumulated other comprehensive income (loss), net of tax | (26,190 | ) | (23,240 | ) | (22,515 | ) | (24,220 | ) | (24,200 | ) | |||||
| Treasury stock, at cost – 1,316,601, 1,300,546, 1,249,297, 1,193,519 and | |||||||||||||||
| 1,076,147 shares, respectively | (19,977 | ) | (19,635 | ) | (18,583 | ) | (17,171 | ) | (14,588 | ) | |||||
| Total stockholders’ equity | 102,908 | 104,933 | 105,211 | 101,942 | 94,895 | ||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,437,245 | $ | 1,416,933 | $ | 1,359,788 | $ | 1,337,689 | $ | 1,319,569 | |||||
| PSB Holdings, Inc. | ||||||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||||||||
| (dollars in thousands, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | September | ||||||||||||||||
| except per share data – unaudited) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | |||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||||
| Loans, including fees | $ | 14,263 | $ | 12,709 | $ | 11,773 | $ | 11,251 | $ | 10,225 | $ | 38,745 | $ | 28,574 | ||||||||
| Securities: | ||||||||||||||||||||||
| Taxable | 1,114 | 1,327 | 1,331 | 1,218 | 978 | 3,772 | 2,599 | |||||||||||||||
| Tax-exempt | 533 | 535 | 537 | 539 | 540 | 1,605 | 1,610 | |||||||||||||||
| Other interest and dividends | 238 | 145 | 148 | 141 | 163 | 531 | 257 | |||||||||||||||
| Total interest and dividend income | 16,148 | 14,716 | 13,789 | 13,149 | 11,906 | 44,653 | 33,040 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||||
| Deposits | 4,817 | 3,661 | 2,989 | 2,060 | 1,341 | 11,467 | 2,379 | |||||||||||||||
| FHLB advances | 1,321 | 1,200 | 547 | 167 | 209 | 3,068 | 612 | |||||||||||||||
| Other borrowings | 51 | 48 | 62 | 38 | 14 | 161 | 20 | |||||||||||||||
| Senior subordinated notes | 59 | 58 | 62 | 55 | 28 | 179 | 84 | |||||||||||||||
| Junior subordinated debentures | 255 | 242 | 234 | 224 | 202 | 731 | 547 | |||||||||||||||
| Total interest expense | 6,503 | 5,209 | 3,894 | 2,544 | 1,794 | 15,606 | 3,642 | |||||||||||||||
| Net interest income | 9,645 | 9,507 | 9,895 | 10,605 | 10,112 | 29,047 | 29,398 | |||||||||||||||
| Provision for loan losses | 150 | 100 | 100 | – | – | 350 | – | |||||||||||||||
| Net interest income after provision for loan losses | 9,495 | 9,407 | 9,795 | 10,605 | 10,112 | 28,697 | 29,398 | |||||||||||||||
| Noninterest income: | ||||||||||||||||||||||
| Service fees | 349 | 378 | 361 | 381 | 409 | 1,088 | 1,189 | |||||||||||||||
| Mortgage banking income | 345 | 311 | 325 | 235 | 228 | 981 | 980 | |||||||||||||||
| Investment and insurance sales commissions | 158 | 287 | 365 | 498 | 357 | 810 | 1,217 | |||||||||||||||
| Net loss on sale of securities | – | (279 | ) | – | – | – | (279 | ) | – | |||||||||||||
| Increase in cash surrender value of life insurance | 155 | 149 | 157 | 157 | 157 | 461 | 459 | |||||||||||||||
| Life insurance death benefit | – | 533 | – | – | – | 533 | – | |||||||||||||||
| Other noninterest income | 675 | 605 | 742 | 553 | 558 | 2,022 | 1,775 | |||||||||||||||
| Total noninterest income | 1,682 | 1,984 | 1,950 | 1,824 | 1,709 | 5,616 | 5,620 | |||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||
| Salaries and employee benefits | 4,514 | 4,884 | 5,006 | 4,700 | 4,302 | 14,404 | 13,240 | |||||||||||||||
| Occupancy and facilities | 689 | 698 | 699 | 641 | 687 | 2,086 | 1,981 | |||||||||||||||
| Loss (gain) on foreclosed assets | – | 4 | (50 | ) | 2 | 4 | (46 | ) | (2 | ) | ||||||||||||
| Data processing and other office operations | 953 | 951 | 880 | 910 | 906 | 2,784 | 2,679 | |||||||||||||||
| Advertising and promotion | 161 | 166 | 162 | 180 | 185 | 489 | 510 | |||||||||||||||
| Core deposit intangible amortization | 24 | 27 | 34 | 34 | 34 | 85 | 119 | |||||||||||||||
| Other noninterest expenses | 1,113 | 1,202 | 1,073 | 1,219 | 1,069 | 3,388 | 3,303 | |||||||||||||||
| Total noninterest expense | 7,454 | 7,932 | 7,804 | 7,686 | 7,187 | 23,190 | 21,830 | |||||||||||||||
| Income before provision for income taxes | 3,723 | 3,459 | 3,941 | 4,743 | 4,634 | 11,123 | 13,188 | |||||||||||||||
| Provision for income taxes | 2,374 | 652 | 941 | 1,143 | 1,119 | 3,967 | 3,151 | |||||||||||||||
| Net income | $ | 1,349 | $ | 2,807 | $ | 3,000 | $ | 3,600 | $ | 3,515 | $ | 7,156 | $ | 10,037 | ||||||||
| Preferred stock dividends declared | $ | 122 | $ | 122 | $ | 122 | $ | 81 | $ | – | $ | 366 | $ | – | ||||||||
| Net income available to common shareholders | $ | 1,227 | $ | 2,685 | $ | 2,878 | $ | 3,519 | $ | 3,515 | $ | 6,790 | $ | 10,037 | ||||||||
| Basic earnings per common share | $ | 0.29 | $ | 0.64 | $ | 0.67 | $ | 0.80 | $ | 0.80 | $ | 1.61 | $ | 2.27 | ||||||||
| Diluted earnings per common share | $ | 0.29 | $ | 0.64 | $ | 0.67 | $ | 0.80 | $ | 0.80 | $ | 1.61 | $ | 2.27 | ||||||||
| PSB Holdings, Inc. | |||||||||||||||
| Quarterly Financial Summary | |||||||||||||||
| (dollars in thousands, except per share data) | Quarter ended | ||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | |||||||||||
| Earnings and dividends: | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||
| Interest income | $ | 16,148 | $ | 14,716 | $ | 13,789 | $ | 13,149 | $ | 11,906 | |||||
| Interest expense | $ | 6,503 | $ | 5,209 | $ | 3,894 | $ | 2,544 | $ | 1,794 | |||||
| Net interest income | $ | 9,645 | $ | 9,507 | $ | 9,895 | $ | 10,605 | $ | 10,112 | |||||
| Provision for loan losses | $ | 150 | $ | 100 | $ | 100 | $ | – | $ | – | |||||
| Other noninterest income | $ | 1,682 | $ | 1,984 | $ | 1,950 | $ | 1,824 | $ | 1,709 | |||||
| Other noninterest expense | $ | 7,454 | $ | 7,932 | $ | 7,804 | $ | 7,686 | $ | 7,187 | |||||
| Net income available to common shareholders | $ | 1,227 | $ | 2,685 | $ | 2,878 | $ | 3,519 | $ | 3,515 | |||||
| Basic earnings per common share (3) | $ | 0.29 | $ | 0.64 | $ | 0.67 | $ | 0.80 | $ | 0.80 | |||||
| Diluted earnings per common share (3) | $ | 0.29 | $ | 0.64 | $ | 0.67 | $ | 0.80 | $ | 0.80 | |||||
| Dividends declared per common share (3) | $ | – | $ | 0.30 | $ | – | $ | 0.25 | $ | – | |||||
| Tangible net book value per common share (4) | $ | 22.25 | $ | 22.64 | $ | 22.43 | $ | 21.37 | $ | 20.83 | |||||
| Semi-annual dividend payout ratio | n/a | 27.38 | % | n/a | 15.27 | % | n/a | ||||||||
| Average common shares outstanding | 4,186,940 | 4,218,226 | 4,275,160 | 4,377,330 | 4,419,421 | ||||||||||
| Balance sheet – average balances: | |||||||||||||||
| Loans receivable, net of allowances for loss | $ | 1,076,158 | $ | 1,000,349 | $ | 964,029 | $ | 945,551 | $ | 931,344 | |||||
| Assets | $ | 1,425,522 | $ | 1,367,363 | $ | 1,336,511 | $ | 1,321,776 | $ | 1,323,400 | |||||
| Deposits | $ | 1,149,624 | $ | 1,098,039 | $ | 1,124,091 | $ | 1,146,066 | $ | 1,141,784 | |||||
| Stockholders’ equity | $ | 105,745 | $ | 106,762 | $ | 103,406 | $ | 100,037 | $ | 98,630 | |||||
| Performance ratios: | |||||||||||||||
| Return on average assets (1) | 0.34 | % | 0.79 | % | 0.87 | % | 1.06 | % | 1.05 | % | |||||
| Return on average stockholders’ equity (1) | 4.60 | % | 10.09 | % | 11.29 | % | 13.96 | % | 14.14 | % | |||||
| Return on average tangible common | |||||||||||||||
| stockholders’ equity (1)(4) | 5.09 | % | 11.14 | % | 12.51 | % | 15.12 | % | 14.58 | % | |||||
| Net loan charge-offs to average loans (1) | 0.00 | % | -0.07 | % | -0.02 | % | 0.03 | % | 0.01 | % | |||||
| Nonperforming loans to gross loans | 0.55 | % | 0.60 | % | 0.62 | % | 0.64 | % | 1.16 | % | |||||
| Nonperforming assets to total assets | 0.42 | % | 0.45 | % | 0.45 | % | 0.48 | % | 0.85 | % | |||||
| Allowance for loan losses to gross loans | 1.15 | % | 1.19 | % | 1.25 | % | 1.26 | % | 1.30 | % | |||||
| Nonperforming assets to tangible equity | |||||||||||||||
| plus the allowance for loan losses (4) | 5.87 | % | 5.96 | % | 5.76 | % | 6.22 | % | 10.89 | % | |||||
| Net interest rate margin (1)(2) | 2.88 | % | 2.98 | % | 3.21 | % | 3.41 | % | 3.24 | % | |||||
| Net interest rate spread (1)(2) | 2.27 | % | 2.46 | % | 2.77 | % | 3.10 | % | 3.04 | % | |||||
| Service fee revenue as a percent of | |||||||||||||||
| average demand deposits (1) | 0.50 | % | 0.58 | % | 0.52 | % | 0.50 | % | 0.56 | % | |||||
| Noninterest income as a percent | |||||||||||||||
| of gross revenue | 9.43 | % | 11.88 | % | 12.39 | % | 12.18 | % | 12.55 | % | |||||
| Efficiency ratio (2) | 64.58 | % | 68.09 | % | 65.02 | % | 61.06 | % | 60.02 | % | |||||
| Noninterest expenses to average assets (1) | 2.07 | % | 2.33 | % | 2.37 | % | 2.31 | % | 2.15 | % | |||||
| Average stockholders’ equity less accumulated | |||||||||||||||
| other comprehensive income (loss) to | |||||||||||||||
| average assets | 9.00 | % | 9.33 | % | 9.32 | % | 9.23 | % | 8.95 | % | |||||
| Tangible equity to tangible assets (4) | 6.98 | % | 7.22 | % | 7.54 | % | 7.42 | % | 6.98 | % | |||||
| Stock price information: | |||||||||||||||
| High | $ | 22.50 | $ | 21.38 | $ | 25.75 | $ | 22.74 | $ | 23.94 | |||||
| Low | $ | 20.35 | $ | 19.75 | $ | 20.00 | $ | 21.50 | $ | 22.50 | |||||
| Last trade value at quarter-end | $ | 21.15 | $ | 20.35 | $ | 21.15 | $ | 21.90 | $ | 22.50 | |||||
| (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 | |||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | |||||||||||
| (dollars in thousands – unaudited) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||
| Net income | $ | 1,349 | $ | 2,807 | $ | 3,000 | $ | 3,600 | $ | 3,515 | |||||
| Other comprehensive income, net of tax: | |||||||||||||||
| Unrealized gain (loss) on securities available | |||||||||||||||
| for sale | (3,085 | ) | (1,168 | ) | 1,601 | (116 | ) | (4,915 | ) | ||||||
| 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 | 91 | 107 | 129 | 93 | 92 | ||||||||||
| Unrealized gain (loss) on interest rate swap | 79 | 161 | (1 | ) | 11 | 32 | |||||||||
| Reclassification adjustment of interest rate | |||||||||||||||
| swap settlements included in earnings | (35 | ) | (27 | ) | (24 | ) | (8 | ) | 13 | ||||||
| Other comprehensive income (loss) | (2,950 | ) | (725 | ) | 1,705 | (20 | ) | (4,778 | ) | ||||||
| Comprehensive income (loss) | $ | (1,601 | ) | $ | 2,082 | $ | 4,705 | $ | 3,580 | $ | (1,263 | ) | |||
| PSB Holdings, Inc. | |||||||||||||||
| Nonperforming Assets as of: | |||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||||||||
| (dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||
| Nonaccrual loans (excluding restructured loans) | $ | 5,807 | $ | 6,000 | $ | 5,773 | $ | 5,879 | $ | 6,048 | |||||
| Nonaccrual restructured loans | 42 | 50 | 57 | 62 | 70 | ||||||||||
| Restructured loans not on nonaccrual | 256 | 261 | 265 | 270 | 4,904 | ||||||||||
| Accruing loans past due 90 days or more | – | – | – | – | – | ||||||||||
| Total nonperforming loans | 6,105 | 6,311 | 6,095 | 6,211 | 11,022 | ||||||||||
| Other real estate owned | – | – | – | 160 | 160 | ||||||||||
| Total nonperforming assets | $ | 6,105 | $ | 6,311 | $ | 6,095 | $ | 6,371 | $ | 11,182 | |||||
| Nonperforming loans as a % of gross loans receivable | 0.55 | % | 0.60 | % | 0.62 | % | 0.64 | % | 1.16 | % | |||||
| Total nonperforming assets as a % of total assets | 0.42 | % | 0.45 | % | 0.45 | % | 0.48 | % | 0.85 | % | |||||
| Allowance for loan losses as a % of nonperforming loans | 192.55 | % | 177.63 | % | 191.63 | % | 197.92 | % | 112.28 | % | |||||
| PSB Holdings, Inc. | |||||||
| Nonperforming Assets >= $500,000 net book value before specific reserves | |||||||
| At September 30, 2023 | |||||||
| (dollars in thousands) | |||||||
| Asset Type | Gross Principal |
Specific Reserves |
|||||
| Collateral Description | |||||||
| Real estate – Buffet Style Restaurant | Nonaccrual | $ | 2,742 | $ | 992 | ||
| Real estate – Independent Auto Repair | Nonaccrual | 690 | 38 | ||||
| Total listed nonperforming assets | $ | 3,432 | $ | 1,030 | |||
| Total bank wide nonperforming assets | $ | 6,105 | $ | 1,420 | |||
| Listed assets as a % of total nonperforming assets | 56 | % | 73 | % | |||
| PSB Holding, Inc. | |||||||||||||||
| Loan Composition by Purpose | |||||||||||||||
| Quarter-ended (dollars in thousands) | Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
||||||||||
| Residential real estate: | |||||||||||||||
| One to four family | $ | 200,239 | $ | 199,100 | $ | 187,325 | $ | 182,688 | $ | 172,913 | |||||
| HELOC loans | 19,127 | 19,498 | 18,141 | 17,625 | 18,423 | ||||||||||
| Residential construction & development | 20,571 | 18,634 | 22,014 | 20,698 | 22,313 | ||||||||||
| Residential vacant land | 1,155 | 1,111 | 1,223 | 1,414 | 3,069 | ||||||||||
| Total Residential real estate | 241,092 | 238,343 | 228,703 | 222,425 | 216,718 | ||||||||||
| Commercial/Agricultural real estate: | |||||||||||||||
| Owner occupied | |||||||||||||||
| Commercial real estate | 238,706 | 238,608 | 237,217 | 220,375 | 211,008 | ||||||||||
| SBA commercial real estate | 2,307 | 2,078 | 2,112 | 2,514 | 2,616 | ||||||||||
| Agriculture real estate | 3,482 | 3,563 | 3,681 | 3,835 | 3,902 | ||||||||||
| Construction and land development | 4,715 | 1,691 | 2,825 | 22,330 | 32,158 | ||||||||||
| Commercial vacant land | 7,281 | 7,223 | 6,712 | 7,291 | 5,214 | ||||||||||
| Total Owner occupied | 256,491 | 253,163 | 252,547 | 256,345 | 254,898 | ||||||||||
| Non-owner occupied | |||||||||||||||
| Commercial real estate | 263,368 | 240,010 | 226,280 | 228,761 | 225,823 | ||||||||||
| One to four family residential rental | 86,838 | 67,854 | 65,673 | 64,764 | 66,224 | ||||||||||
| Construction and land development | 45,533 | 49,310 | 41,272 | 27,253 | 25,543 | ||||||||||
| Commercial vacant land | 20,401 | 10,424 | 3,928 | 3,862 | 4,010 | ||||||||||
| Total Non-owner occupied | 416,140 | 367,598 | 337,153 | 324,640 | 321,600 | ||||||||||
| Commercial/Agricultural non-real estate: | |||||||||||||||
| Municipal non-real estate | 27,187 | 25,223 | 6,430 | 9,915 | 7,133 | ||||||||||
| Commercial line | 64,335 | 73,651 | 57,727 | 63,173 | 56,154 | ||||||||||
| Other commercial non-real estate | 95,024 | 92,519 | 92,419 | 87,535 | 82,430 | ||||||||||
| SBA commercial non-real estate | 3,795 | 3,787 | 3,997 | 3,533 | 3,378 | ||||||||||
| Agricultural non-real estate | 1,234 | 1,204 | 1,250 | 1,290 | 1,491 | ||||||||||
| Total Commercial/Agr. non-real estate | 191,575 | 196,384 | 161,823 | 165,446 | 150,586 | ||||||||||
| Consumer non-real estate: | |||||||||||||||
| Consumer installment | 3,565 | 3,483 | 3,357 | 4,072 | 4,005 | ||||||||||
| Consumer line | 422 | 441 | 529 | 382 | 494 | ||||||||||
| Other consumer | 118 | 106 | 108 | 115 | 116 | ||||||||||
| Total Consumer non-real estate | 4,105 | 4,030 | 3,994 | 4,569 | 4,615 | ||||||||||
| Gross loans | 1,109,403 | 1,059,518 | 984,220 | 973,425 | 948,417 | ||||||||||
| Net deferred loan costs (fees) | 630 | 605 | 542 | 573 | 537 | ||||||||||
| Overdrafts | 253 | 121 | 101 | 160 | 107 | ||||||||||
| Allowance for loan losses | (12,267 | ) | (11,922 | ) | (11,593 | ) | (12,293 | ) | (12,375 | ) | |||||
| Total loans receivable | $ | 1,098,019 | $ | 1,048,322 | $ | 973,270 | $ | 961,865 | $ | 936,686 | |||||
| PSB Holding, Inc. | |||||||||||||||||||||||||
| Selected Commercial Real Estate Loans by Purpose | |||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||||||||||||||||||
| (dollars in thousands) | 2023 | 2023 | 2023 | 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 | $ | 133,466 | 13.3 | % | $ | 119,573 | 12.4 | % | $ | 121,559 | 13.0 | % | $ | 120,232 | 13.1 | % | $ | 141,414 | 15.6 | % | |||||
| Industrial and Warehousing | 88,906 | 8.9 | 84,049 | 8.7 | 78,934 | 8.5 | 76,536 | 8.3 | 83,033 | 9.1 | |||||||||||||||
| Retail | 35,281 | 3.5 | 34,004 | 3.5 | 34,427 | 3.7 | 32,587 | 3.5 | 39,279 | 4.3 | |||||||||||||||
| Hotels | 31,819 | 3.2 | 33,329 | 3.5 | 31,069 | 3.3 | 32,940 | 3.6 | 26,958 | 3.0 | |||||||||||||||
| Office | 6,746 | 0.7 | 8,395 | 0.9 | 8,544 | 0.9 | 8,652 | 0.9 | 8,758 | 1.0 | |||||||||||||||
| (1) Percentage of portfolio and commitments. | |||||||||||||||||||||||||
| PSB Holdings, Inc. | ||||||||||||||||||||||||
| Deposit Composition | ||||||||||||||||||||||||
| Insured and Collateralized Deposits | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||
| (dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||
| $ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||||||
| Non-interest bearing demand | $ | 209,133 | 17.8 | % | $ | 201,351 | 17.6 | % | $ | 205,350 | 18.6 | % | $ | 203,115 | 17.7 | % | $ | 216,116 | 18.7 | % | ||||
| Interest-bearing demand and savings | 307,620 | 26.3 | % | 310,006 | 27.1 | % | 329,364 | 29.7 | % | 345,854 | 30.1 | % | 348,989 | 30.4 | % | |||||||||
| Money market deposits | 135,910 | 11.6 | % | 126,851 | 11.1 | % | 128,576 | 11.6 | % | 131,400 | 11.4 | % | 130,126 | 11.3 | % | |||||||||
| Retail and local time deposits <= $250 | 144,733 | 12.3 | % | 140,572 | 12.3 | % | 136,090 | 12.3 | % | 130,205 | 11.3 | % | 132,095 | 11.5 | % | |||||||||
| Total core deposits | 797,396 | 68.0 | % | 778,780 | 68.1 | % | 799,380 | 72.2 | % | 810,574 | 70.5 | % | 827,326 | 71.9 | % | |||||||||
| Retail and local time deposits > $250 | 22,750 | 1.9 | % | 20,250 | 1.8 | % | 17,000 | 1.5 | % | 14,500 | 1.3 | % | 12,250 | 1.1 | % | |||||||||
| Broker & national time deposits <= $250 | 3,222 | 0.3 | % | 3,965 | 0.3 | % | 5,953 | 0.5 | % | 6,451 | 0.6 | % | 6,700 | 0.6 | % | |||||||||
| Broker & national time deposits > $250 | 88,614 | 7.6 | % | 93,956 | 8.2 | % | 74,485 | 6.8 | % | 82,439 | 7.2 | % | 82,439 | 7.2 | % | |||||||||
| Totals | $ | 911,982 | 77.8 | % | $ | 896,951 | 78.4 | % | $ | 896,818 | 81.0 | % | $ | 913,964 | 79.6 | % | $ | 928,715 | 80.8 | % | ||||
| PSB Holdings, Inc. | ||||||||||||||||||||||||
| Deposit Composition | ||||||||||||||||||||||||
| Uninsured Deposits | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||
| (dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||
| $ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||||||
| Non-interest bearing demand | $ | 79,632 | 6.8 | % | $ | 80,802 | 7.1 | % | $ | 62,486 | 5.6 | % | $ | 89,223 | 7.7 | % | $ | 82,219 | 7.2 | % | ||||
| Interest-bearing demand and savings | 22,847 | 1.9 | % | 22,604 | 2.0 | % | 24,854 | 2.2 | % | 49,917 | 4.3 | % | 28,842 | 2.5 | % | |||||||||
| Money market deposits | 133,653 | 11.4 | % | 127,871 | 11.2 | % | 109,894 | 10.0 | % | 84,673 | 7.4 | % | 98,493 | 8.6 | % | |||||||||
| Retail and local time deposits <= $250 | – | 0.0 | % | – | 0.0 | % | – | 0.0 | % | – | 0.0 | % | – | 0.0 | % | |||||||||
| Total core deposits | 236,132 | 20.1 | % | 231,277 | 20.3 | % | 197,234 | 17.8 | % | 223,813 | 19.4 | % | 209,554 | 18.3 | % | |||||||||
| Retail and local time deposits > $250 | 24,120 | 2.1 | % | 14,906 | 1.3 | % | 13,541 | 1.2 | % | 10,978 | 1.0 | % | 10,549 | 0.9 | % | |||||||||
| 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 | $ | 260,252 | 22.2 | % | $ | 246,183 | 21.6 | % | $ | 210,775 | 19.0 | % | $ | 234,791 | 20.4 | % | $ | 220,103 | 19.2 | % | ||||
| PSB Holdings, Inc. | ||||||||||||||||||||||||
| Deposit Composition | ||||||||||||||||||||||||
| Total Deposits | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||
| (dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||
| $ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||||||
| Non-interest bearing demand | $ | 288,765 | 24.7 | % | $ | 282,153 | 24.7 | % | $ | 267,836 | 24.2 | % | $ | 292,338 | 25.4 | % | $ | 298,335 | 26.0 | % | ||||
| Interest-bearing demand and savings | 330,467 | 28.2 | % | 332,610 | 29.1 | % | 354,218 | 32.0 | % | 395,771 | 34.5 | % | 377,831 | 32.9 | % | |||||||||
| Money market deposits | 269,563 | 22.8 | % | 254,722 | 22.3 | % | 238,470 | 21.5 | % | 216,073 | 18.8 | % | 228,619 | 19.9 | % | |||||||||
| Retail and local time deposits <= $250 | 144,733 | 12.4 | % | 140,572 | 12.3 | % | 136,090 | 12.3 | % | 130,205 | 11.3 | % | 132,095 | 11.4 | % | |||||||||
| Total core deposits | 1,033,533 | 88.1 | % | 1,010,057 | 88.4 | % | 996,614 | 90.0 | % | 1,034,387 | 90.0 | % | 1,036,880 | 90.2 | % | |||||||||
| Retail and local time deposits > $250 | 46,870 | 4.0 | % | 35,156 | 3.1 | % | 30,541 | 2.8 | % | 25,478 | 2.2 | % | 22,799 | 2.0 | % | |||||||||
| Broker & national time deposits <= $250 | 3,222 | 0.3 | % | 3,965 | 0.3 | % | 5,953 | 0.5 | % | 6,451 | 0.6 | % | 6,700 | 0.6 | % | |||||||||
| Broker & national time deposits > $250 | 88,614 | 7.6 | % | 93,956 | 8.2 | % | 74,485 | 6.7 | % | 82,439 | 7.2 | % | 82,439 | 7.2 | % | |||||||||
| Totals | $ | 1,172,239 | 100.0 | % | $ | 1,143,134 | 100.0 | % | $ | 1,107,593 | 100.0 | % | $ | 1,148,755 | 100.0 | % | $ | 1,148,818 | 100.0 | % | ||||
| PSB Holdings, Inc. | ||||||||||||||||||||||||||||||
| Average Balances ($000) and Interest Rates | ||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||
| Quarter ended September 30, 2023 | Quarter ended June 30, 2023 | Quarter ended September 30, 2022 | ||||||||||||||||||||||||||||
| Average Balance |
Interest | Yield / Rate |
Average Balance |
Interest | Yield / Rate |
Average Balance |
Interest | Yield / Rate |
||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||
| Loans (1)(2) | $ | 1,088,137 | $ | 14,337 | 5.23 | % | $ | 1,012,105 | $ | 12,726 | 5.04 | % | $ | 943,724 | $ | 10,235 | 4.30 | % | ||||||||||||
| Taxable securities | 173,287 | 1,114 | 2.55 | % | 196,048 | 1,327 | 2.71 | % | 199,727 | 978 | 1.94 | % | ||||||||||||||||||
| Tax-exempt securities (2) | 81,327 | 675 | 3.29 | % | 81,758 | 677 | 3.32 | % | 82,242 | 684 | 3.30 | % | ||||||||||||||||||
| FHLB stock | 6,368 | 127 | 7.91 | % | 5,366 | 51 | 3.81 | % | 2,579 | 32 | 4.92 | % | ||||||||||||||||||
| Other | 8,195 | 111 | 5.37 | % | 7,254 | 94 | 5.20 | % | 28,823 | 131 | 1.80 | % | ||||||||||||||||||
| Total (2) | 1,357,314 | 16,364 | 4.78 | % | 1,302,531 | 14,875 | 4.58 | % | 1,257,095 | 12,060 | 3.81 | % | ||||||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||||||||||||
| Cash and due from banks | 19,299 | 15,632 | 19,400 | |||||||||||||||||||||||||||
| Premises and equipment, | ||||||||||||||||||||||||||||||
| net | 13,266 | 13,336 | 13,052 | |||||||||||||||||||||||||||
| Cash surrender value ins | 23,840 | 24,530 | 24,666 | |||||||||||||||||||||||||||
| Other assets | 23,802 | 23,090 | 21,567 | |||||||||||||||||||||||||||
| Allowance for loan | ||||||||||||||||||||||||||||||
| losses | (11,979 | ) | (11,756 | ) | (12,380 | ) | ||||||||||||||||||||||||
| Total | $ | 1,425,542 | $ | 1,367,363 | $ | 1,323,400 | ||||||||||||||||||||||||
| Liabilities & stockholders’ equity | ||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||
| Savings and demand | ||||||||||||||||||||||||||||||
| deposits | $ | 335,214 | $ | 1,198 | 1.42 | % | $ | 344,435 | $ | 1,035 | 1.21 | % | $ | 375,617 | $ | 370 | 0.39 | % | ||||||||||||
| Money market deposits | 255,823 | 1,489 | 2.31 | % | 243,073 | 1,189 | 1.96 | % | 232,713 | 399 | 0.68 | % | ||||||||||||||||||
| Time deposits | 279,971 | 2,130 | 3.02 | % | 247,007 | 1,437 | 2.33 | % | 245,353 | 572 | 0.92 | % | ||||||||||||||||||
| FHLB borrowings | 134,386 | 1,321 | 3.90 | % | 127,441 | 1,200 | 3.78 | % | 49,924 | 209 | 1.66 | % | ||||||||||||||||||
| Other borrowings | 5,681 | 51 | 3.56 | % | 5,588 | 48 | 3.45 | % | 6,919 | 14 | 0.80 | % | ||||||||||||||||||
| Senior sub. notes | 4,772 | 59 | 4.91 | % | 4,770 | 58 | 4.88 | % | 2,500 | 28 | 4.44 | % | ||||||||||||||||||
| Junior sub. debentures | 12,883 | 255 | 7.85 | % | 12,857 | 242 | 7.55 | % | 12,781 | 202 | 6.27 | % | ||||||||||||||||||
| Total | 1,028,730 | 6,503 | 2.51 | % | 985,171 | 5,209 | 2.12 | % | 925,807 | 1,794 | 0.77 | % | ||||||||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||||||||||||
| Demand deposits | 278,616 | 263,524 | 288,101 | |||||||||||||||||||||||||||
| Other liabilities | 12,438 | 11,906 | 10,862 | |||||||||||||||||||||||||||
| Stockholders’ equity | 105,758 | 106,762 | 98,630 | |||||||||||||||||||||||||||
| Total | $ | 1,425,542 | $ | 1,367,363 | $ | 1,323,400 | ||||||||||||||||||||||||
| Net interest income | $ | 9,861 | $ | 9,666 | $ | 10,266 | ||||||||||||||||||||||||
| Rate spread | 2.27 | % | 2.46 | % | 3.04 | % | ||||||||||||||||||||||||
| Net yield on interest-earning assets | 2.88 | % | 2.98 | % | 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%. | ||||||||||||||||||||||||||||||
| PSB Holdings, Inc. | ||||||||||||||||||||
| Average Balances ($000) and Interest Rates | ||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Nine months ended September 30, 2023 | Nine months ended September 30, 2022 | |||||||||||||||||||
| Average Balance |
Interest | Yield/ Rate |
Average Balance |
Interest | Yield/ Rate |
|||||||||||||||
| Assets | ||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans (1)(2) | $ | 1,025,955 | $ | 38,851 | 5.06 | % | $ | 917,541 | $ | 28,605 | 4.17 | % | ||||||||
| Taxable securities | 189,583 | 3,772 | 2.66 | % | 207,179 | 2,599 | 1.68 | % | ||||||||||||
| Tax-exempt securities (2) | 81,670 | 2,032 | 3.33 | % | 83,281 | 2,038 | 3.27 | % | ||||||||||||
| FHLB stock | 4,943 | 228 | 6.17 | % | 2,625 | 82 | 4.18 | % | ||||||||||||
| Other | 8,154 | 303 | 4.97 | % | 23,327 | 175 | 1.00 | % | ||||||||||||
| Total (2) | 1,310,305 | 45,186 | 4.61 | % | 1,233,953 | 33,499 | 3.63 | % | ||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||
| Cash and due from banks | 17,403 | 18,714 | ||||||||||||||||||
| Premises and equipment, | ||||||||||||||||||||
| net | 13,311 | 12,942 | ||||||||||||||||||
| Cash surrender value ins | 24,446 | 24,513 | ||||||||||||||||||
| Other assets | 23,352 | 19,995 | ||||||||||||||||||
| Allowance for loan | ||||||||||||||||||||
| losses | (12,004 | ) | (12,338 | ) | ||||||||||||||||
| Total | $ | 1,376,813 | $ | 1,297,779 | ||||||||||||||||
| Liabilities & stockholders’ equity | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Savings and demand | ||||||||||||||||||||
| deposits | $ | 350,928 | $ | 3,286 | 1.25 | % | $ | 383,795 | $ | 561 | 0.20 | % | ||||||||
| Money market deposits | 241,594 | 3,508 | 1.94 | % | 222,975 | 609 | 0.37 | % | ||||||||||||
| Time deposits | 257,639 | 4,673 | 2.43 | % | 222,946 | 1,209 | 0.73 | % | ||||||||||||
| FHLB borrowings | 110,460 | 3,068 | 3.71 | % | 54,590 | 612 | 1.50 | % | ||||||||||||
| Other borrowings | 7,082 | 161 | 3.04 | % | 6,135 | 20 | 0.44 | % | ||||||||||||
| Senior sub. notes | 4,965 | 179 | 4.82 | % | 2,500 | 84 | 4.49 | % | ||||||||||||
| Junior sub. debentures | 12,857 | 731 | 7.60 | % | 12,755 | 547 | 5.73 | % | ||||||||||||
| Total | 985,525 | 15,606 | 2.12 | % | 905,696 | 3,642 | 0.54 | % | ||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||
| Demand deposits | 273,699 | 279,135 | ||||||||||||||||||
| Other liabilities | 12,162 | 11,093 | ||||||||||||||||||
| Stockholders’ equity | 105,427 | 101,855 | ||||||||||||||||||
| Total | $ | 1,376,813 | $ | 1,297,779 | ||||||||||||||||
| Net interest income | $ | 29,580 | $ | 29,857 | ||||||||||||||||
| Rate spread | 2.49 | % | 3.09 | % | ||||||||||||||||
| Net yield on interest-earning assets | 3.02 | % | 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 tax rate of 21%. | ||||||||||||||||||||
