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Peoples State Bank

Press Release

PSB Reports First Quarter 2019 Earnings of $2.7 Million or $0.61 Per Share; Common Stock Upgraded to Trade on OTCQX

Company Release - 4/29/2019 8:30 AM ET

WAUSAU, Wis., April 29, 2019 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank serving North Central Wisconsin, reported first quarter earnings ending March 31, 2019 of $2.73 million, or $0.61 per share, compared to earnings of $0.56 per share on net income of $2.53 million one quarter earlier and $0.52 per share one year earlier on earnings of $2.36 million.  The first quarter earnings included a $534,000 gain on equity securities, or $.09 per share, due to a change in accounting principle.

“We continue to realize organic loan, deposit, and earnings growth year-over-year.  March 2019 quarter return on equity of 13.42% was strong and has ranged from 12.62% to 14.57% over the past five quarters.  Before the positive impact of the change in accounting principle and resulting gain on securities, March 2019 net income was similar to the prior year quarter as increased net interest income from higher net margin was offset by higher provision for loan losses,” stated Scott Cattanach, President and CEO.  “To enhance the visibility of our common stock, we recently moved to the OTCQX trading platform in an effort to appeal to a wider group of investors.” 

Financial Highlights (at or for the periods ended March 31, 2019, compared to December 31, 2018 and/or March 31, 2018, as applicable):

  • The net interest margin increased to 3.63% for the quarter ended March 31, 2019, compared to 3.58% the previous quarter and 3.49% for the first quarter one year earlier. 
     
  • Return on shareholders’ equity was 13.42% for the quarter ended March 31, 2019 compared to 12.62% one quarter earlier and 12.90% for the first quarter one year earlier.  Return on average assets was 1.23% for the first quarter of 2019 compared to 1.14% the previous quarter and 1.13% for the first quarter one year earlier. Excluding the gain on equity securities due to the change in accounting principle, quarter ended March 31, 2019, return on shareholders’ equity was 11.41% and return on average assets was 1.05%.
     
  • Non-interest income, due to a change in accounting principle, increased $534,000 during the quarter ended March 31, 2019.
     
  • Loan loss provisions increased to $400,000 for the quarter ended March 31, 2019 reflecting reserves against an increasing loan portfolio and a specific reserve established on a credit exposed to the bankruptcy of the retailer Shopko.
     
  • The efficiency ratio was 58.59% for the quarter ended March 31, 2019 compared to 62.54% one quarter earlier and 63.08% in the year ago quarter. Excluding the equity securities gain for the quarter ended March 31, 2019, the efficiency ratio was 61.89%.
     
  • Tangible net book value was $18.89 per share at March 31, 2019, an increase of 5.06% from $17.98 per share as of December 31, 2018 and 14.35% from $16.52 per share at March 31, 2018.

Balance Sheet and Asset Quality Review

Total assets were $893.8 million as of March 31, 2019, compared to $916.0 million as of December 31, 2018.  Relative to the prior quarter, assets decreased $22.2 million, or 2.42%.  Total loans receivable increased $2.28 million which continued to be partially fueled by origination activity in our loan production office in Milwaukee.  Organic loan growth was offset by seasonal paydowns of commercial lines of credit of $11.2 million.  Most of the loan growth was in the commercial/agricultural real estate loan portfolio, which increased to $360.0 million at March 31, 2019 from $349.4 million at December 31, 2018.  The growth in commercial real estate loans was partially offset by the decline in commercial/agricultural non-real estate loans which declined $7.8 million to $139.4 million at March 31, 2019 from $147.2 million at December 31, 2018.  Non-owner occupied commercial/agricultural real estate loans represented the largest component of the loan portfolio at 30.7% of gross loans at March 31, 2019, followed by residential real estate loans at 24.6%, owner occupied commercial/agricultural real estate loans at 23.3%, commercial loans at 20.9% and consumer loans at 0.5%.  The allowance for loan losses was 0.98% of gross loans at March 31, 2019, compared to 0.94% at the end of the previous quarter and 1.04% one year earlier.  The annualized net charge-offs to average loans was 0.08% for the quarter ended March 31, 2019 compared to 0.07% at the end of  the previous quarter and 0.03% one year earlier.

Non-performing assets were 0.84% of total assets at March 31, 2019, compared to 0.67% at December 31, 2018, and 0.79% at March 31, 2018.  The slight increase in non-performing assets relates to a commercial real estate credit that leases property to the retailer Shopko.  The retailer announced bankruptcy filing in mid-January 2019 and subsequently announced on March 19, 2019 the liquidation of all stores by June 2019.  At March 31, 2019, we had two Shopko related credits with a balance of $3.7 million of which one credit was listed as non-performing for $1.5 million.  At March 31, 2019, non-performing assets consisted of $4.8 million in non-accruing loans, $2.3 million in restructured loans not on non-accrual, $283,000 in non-accrual restructured loans and $113,000 in foreclosed assets.  Nonperforming assets aggregating to $500,000 or more, measured by gross principal outstanding per credit relationship, included three relationships at March 31, 2019, totaling $3.3 million.  Specific reserves maintained on these large problem loans were $577,000 at March 31, 2019.

At March 31, 2019, cash and investments totaled $195.7 million compared to $219.1 million at December 31, 2018.  “During the most recent quarter, we sold some shorter-term bonds and repurchased bonds with longer maturities to extend the duration of our investment portfolio and paid off some wholesale borrowings.  The impact increased our investment yield as the interest rate environment appears to have stabilized and our maturity schedule aligns with our investment needs. Additionally, the reduction of wholesale funding sources has improved our net interest margin,” said Mark Oldenberg, Chief Financial Officer. 

Total deposits decreased $10.4 million to $715.4 million at March 31, 2019 from $725.8 million at December 31, 2018. At March 31, 2019, interest-bearing demand and savings deposits accounted for 34.0% of total deposits, followed by money market deposits at 22.5%, noninterest-bearing demand deposits at 19.3% and retail and local time deposits at 17.4%.  Broker and national time deposits accounted for 6.8% of total deposits at March 31, 2019 versus 7.6% the prior quarter and 8.5% one year earlier.

FHLB advances decreased $29.9 million to $51.2 million at March 31, 2019, from $81.1 million at December 31, 2018 as wholesale funding needs were reduced and repayments were made from liquid investments.  Total borrowings decreased to $84.3 million at March 31, 2019, from $99.7 million at the end of the prior quarter.    

For the quarter ended March 31, 2019, stockholders’ equity increased $4.2 million, or 5.26%, to $85.1 million, compared to $80.8 million at December 31, 2018.  Tangible net book value per share increased 5.06% to $18.89 per share, at March 31, 2019, compared to $17.98 per share at December 31, 2018.  PSB’s tangible equity to total assets increased to 9.50% at March 31, 2019, compared to 8.81% at December 31, 2018. 

Operations Review

Net interest income totaled $7.6 million (on a net margin of 3.63%) for the first quarter of 2019, compared to $7.5 million (on net margin of 3.58%) for the fourth quarter of 2018 and $6.8 million (on a net margin of 3.49%) for the first quarter of 2018.  Net interest income growth from the prior quarter was mainly due to a higher net interest margin as loans and investments repriced slightly faster than the funding sources and the benefit realized from extending bond duration.  Compared to the December 2018 quarter, loans and investment yields increased 12 bps to 4.59% during the quarter ended March 31, 2019 while deposit and borrowing costs rose only 8 bps to 1.23%. Loan yields increased to 5.09% from 4.95% during the quarter ended March 31, 2019.

The cost of interest-bearing liabilities increased during the quarter but at a slower rate than the yield on interest-earning assets as less wholesale funding sources were utilized and lower costing core deposits funded a larger portion of loans and investments.  The largest change in interest expense during the current quarter came from interest cost associated with savings and demand deposits where costs increased from $370,000 to $472,000.  Interest cost related to time deposits, however, declined over the quarter from $785,000 to $782,000 due primarily to a smaller deposit balance.  Interest cost related to FHLB advances also declined over the quarter to $309,000 from $315,000 as average borrowings declined slightly. The net impact was a 5 bp increase in the net interest margin which increased to 3.63% for the quarter ended March 31, 2019 from 3.58% the previous quarter ended December 31, 2018.

The provision for loan losses totaled $400,000 during the first quarter of 2019 compared to a provision of $60,000 for the prior linked quarter.  The increased provision primarily relates to establishing reserves related to a credit associated with the bankruptcy of Shopko and reserves against the growing loan portfolio.

Total noninterest income for the first quarter of 2019 was $2.1 million compared to $1.7 million during the preceding quarter and $1.6 million for the first quarter of 2018.  The increase from the previous quarter was primarily related to a gain realized on an equity investment of approximately $534,000, due to a change in accounting principle.  Commissions on investment and insurance sales declined to $333,000 from $430,000 the prior quarter.  Service fees and gains on the sale of mortgage loans in the first quarter were $381,000 and $175,000, respectively, compared to $388,000 and $284,000 during the first quarter of 2018.  The decrease in gain on sale of mortgage loans was due to fewer units sold into the secondary market as limited local housing inventory and seasonal factors hurt sales volume.

Noninterest expense was $5.7 million for the first quarter of 2019 compared to $5.8 million for the fourth quarter of 2018 and $5.4 million for the first quarter of 2018.  For the first quarter of 2019 noninterest expense decreased due to decreased salaries and benefit expenses, data processing/other office operation expenses and lower advertising and promotion expenses.

Results of Annual Meeting of Shareholders

PSB Holdings, Inc. today announced that shareholders approved all proposals and re-elected all director nominees at its 2019 Annual Meeting held April 16, 2019 in Wausau, WI.  The proposals included the election of directors, an amendment to the Articles of Incorporation to increase the authorized shares outstanding, an amendment to the Articles of Incorporation to stagger the election terms of board members and the ratification of auditors.

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 north central Wisconsin from nine full service banking locations in Marathon, Oneida, and Vilas counties and loan production offices in Milwaukee and 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

Certain matters discussed in this news release, including without limitation those relating to potential loan and deposit growth, future profits, changes in noninterest income and expenses, pro-forma impacts to income from non-recurring or unusual income and expense items, and future interest rates, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in this release. Among other things, these risks and uncertainties include the strength of the economy, the effects of government policies, including, in particular, interest rate policies, and other risks and assumptions.  PSB Holdings, Inc. assumes no obligation to update or supplement forward-looking statements that become untrue because of events subsequent to this press release.

        
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:   2019  2018  2018  2018  2018 
         
 Interest income  $  9,604 $  9,365 $  9,063 $  8,685 $  8,076 
 Interest expense  $  2,032 $  1,888 $  1,805 $  1,406 $  1,262 
 Net interest income  $  7,572 $  7,477 $  7,258 $  7,279 $  6,814 
 Provision for loan losses  $  400 $  60 $  10 $  30 $  30 
 Other noninterest income  $  2,117 $  1,718 $  1,615 $  1,553 $  1,590 
 Other noninterest expense $  5,745 $  5,829 $  5,373 $  5,145 $  5,366 
 Net income  $  2,731 $  2,529 $  2,661 $  2,767 $  2,355 
         
 Basic earnings per share (3) $  0.61 $  0.56 $  0.59 $  0.62 $  0.52 
 Diluted earnings per share (3) $  0.61 $  0.56 $  0.59 $  0.62 $  0.52 
 Dividends declared per share (3) $  -  $  0.18 $  -  $  0.18 $  -  
 Tangible net book value per share (4) $  18.89 $  17.98 $  17.37 $  16.90 $  16.52 
         
 Semi-annual dividend payout ratio n/a 15.56%n/a 15.49%n/a
 Average common shares outstanding    4,494,568    4,488,397    4,490,621    4,492,059    4,515,384 
         
Balance sheet - average balances:      
         
 Loans receivable, net of allowances for loss$  658,586 $  646,063 $  634,469 $  619,251 $  608,203 
 Assets  $  899,263 $  883,373 $  881,518 $  845,816 $  841,863 
 Deposits  $  713,257 $  708,318 $  708,521 $  691,706 $  691,799 
 Stockholders' equity  $  82,516 $  79,525 $  77,390 $  76,150 $  74,026 
         
Performance ratios:       
         
 Return on average assets (1)  1.23% 1.14% 1.20% 1.31% 1.13%
 Return on average stockholders' equity (1) 13.42% 12.62% 13.64% 14.57% 12.90%
 Average stockholders' equity less accumulated     
   other comprehensive income (loss) to      
   average assets   9.27% 9.22% 9.02% 9.21% 8.92%
 Net loan charge-offs to average loans (1) 0.08% 0.07% -0.06% 0.16% 0.03%
 Nonperforming loans to gross loans  1.11% 0.91% 0.84% 0.81% 1.05%
 Nonperforming assets to total assets  0.84% 0.67% 0.67% 0.67% 0.79%
 Allowance for loan losses to gross loans 0.98% 0.94% 0.98% 0.97% 1.04%
 Nonperforming assets to tangible equity     
   plus the allowance for loan losses (4)  8.40% 7.20% 7.14% 7.37% 8.47%
 Net interest rate margin (1)(2)  3.63% 3.58% 3.48% 3.67% 3.49%
 Net interest rate spread (1)(2)  3.36% 3.32% 3.23% 3.46% 3.31%
 Service fee revenue as a percent of      
   average demand deposits (1)  1.12% 1.15% 1.16% 1.13% 1.15%
 Noninterest income as a percent      
   of gross revenue   18.06% 15.50% 15.12% 15.17% 16.45%
 Efficiency ratio (2)   58.59% 62.54% 59.75% 57.56% 63.08%
 Noninterest expenses to average assets (1) 2.59% 2.62% 2.42% 2.44% 2.59%
 Tangible equity to actual assets  9.50% 8.81% 8.83% 8.61% 8.79%
         
Stock price information:       
         
 High  $  23.45 $  27.50 $  27.45 $  24.67 $  23.67 
 Low  $  21.25 $  21.10 $  24.08 $  23.08 $  22.92 
 Last trade value at quarter-end $  22.75 $  22.50 $  27.20 $  24.67 $  23.58 
         
(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 and any preferred stock capital elements. 

 

       
PSB Holdings, Inc.  
Consolidated Statements of Income  
   Quarter Ended  
(dollars in thousands,Mar. 31,Dec. 31,Sept. 30,Jun. 30,Mar. 31, 
except per share data - unaudited) 2019 2018  2018  2018  2018 
       
Interest and dividend income:      
  Loans, including fees$  8,334$  8,125 $  7,814 $  7,579 $  6,971 
  Securities:      
  Taxable   713   714    732    677    676 
  Tax-exempt   396   424    394    364    335 
  Other interest and dividends   161   102    123    65    94 
       
  Total interest and dividend income   9,604   9,365    9,063    8,685    8,076 
       
Interest expense:      
  Deposits   1,553   1,435    1,324    1,078    978 
  FHLB advances   309   315    359    221    190 
  Other borrowings   51   18    1    3    2 
  Senior subordinated notes   28   28    28    29    26 
  Junior subordinated debentures   91   92    93    75    66 
       
  Total interest expense   2,032   1,888    1,805    1,406    1,262 
       
Net interest income   7,572   7,477    7,258    7,279    6,814 
Provision for loan losses   400   60    10    30    30 
       
Net interest income after provision for loan losses   7,172   7,417    7,248    7,249    6,784 
       
Noninterest income:      
  Service fees   381   419    415    389    388 
  Gain on sale of mortgage loans   175   227    286    258    284 
  Mortgage loan servicing, net   125   129    115    131    98 
  Investment and insurance sales commissions   333   430    299    274    304 
  Net gain on sale of securities   18   -     -     -     -  
  Increase in cash surrender value of life insurance   98   96    95    93    89 
  Other noninterest income   987   417    405    408    427 
       
  Total noninterest income   2,117   1,718    1,615    1,553    1,590 
       
Noninterest expense:      
  Salaries and employee benefits   3,428   3,566    3,244    3,101    3,283 
  Occupancy and facilities   601   526    499    534    556 
  Loss (gain) on foreclosed assets   4   (17)   (7)   (18)   8 
  Data processing and other office operations   577   654    649    625    635 
  Advertising and promotion   100   163    98    74    85 
  FDIC insurance premiums   59   61    63    65    58 
  Other noninterest expenses   976   876    827    764    741 
       
  Total noninterest expense   5,745   5,829    5,373    5,145    5,366 
       
Income before provision for income taxes   3,544   3,306    3,490    3,657    3,008 
Provision for income taxes   813   777    829    890    653 
       
Net income$  2,731$  2,529 $  2,661 $  2,767 $  2,355 
Basic earnings per share$  0.61$  0.56 $  0.59 $  0.62 $  0.52 
Diluted earnings per share$  0.61$  0.56 $  0.59 $  0.62 $  0.52 
       

 

PSB Holdings, Inc. 
Consolidated Statements of Comprehensive Income 
     
   Three Months Ended
   March 31,
(dollars in thousands - unaudited) 2019  2018 
     
Net income$  2,731 $  2,355 
     
Other comprehensive income, net of tax:  
     
 Unrealized gain (loss) on securities available  
  for sale   1,515    (1,048)
     
 Reclassification adjustment for security  
  gain included in net income   (13)   -  
     
 Amortization of unrealized gain included in net  
  income on securities available for sale  
  transferred to securities held to maturity   (4)   (14)
     
 Unrealized gain (loss) on interest rate swap   (77)   -  
     
 Reclassification adjustment of interest rate  
  swap settlements included in earnings   3    -  
     
     
Other comprehensive income (loss)   1,424    (1,062)
     
Comprehensive income$  4,155 $  1,293 
     

 

      
PSB Holdings, Inc. 
Consolidated Balance Sheets 
March 31, 2019, September 30, June 30, and March 31, 2018 unaudited,
December 31, 2018 derived from audited financial statements 
  Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31, 
(dollars in thousands, except per share data) 2019  2018  2018  2018  2018 
Assets     
      
Cash and due from banks$  8,917 $  18,923 $  15,348 $  11,876 $  8,854 
Interest-bearing deposits   349    501    930    453    164 
Federal funds sold   12,989    24,554    14,246    19,493    21,050 
      
Cash and cash equivalents   22,255    43,978    30,524    31,822    30,068 
Securities available for sale (at fair value)   127,368    113,821    114,997    114,939    102,865 
Securities held to maturity (fair values of $43,338, $57,607, $59,341, $61,487 and    
  $63,783 respectively   43,061    58,311    60,421    62,299    64,536 
Bank certificates of deposit (at cost)   2,976    2,976    2,976    2,976    3,472 
Loans held for sale   245    358    -     405    156 
Loans receivable, net   660,756    658,481    636,712    631,620    606,764 
Accrued interest receivable   2,826    2,777    2,709    2,544    2,372 
Foreclosed assets   113    113    483    736    260 
Premises and equipment, net   10,426    10,209    10,339    10,524    10,582 
Mortgage servicing rights, net   1,781    1,805    1,805    1,817    1,817 
Federal Home Loan Bank stock (at cost)   1,657    2,330    2,011    2,297    1,672 
Cash surrender value of bank-owned life insurance   16,463    16,365    15,407    15,312    15,219 
Other assets   3,836    4,474    4,893    4,655    4,438 
      
TOTAL ASSETS$  893,763 $  915,998 $  883,277 $  881,946 $  844,221 
      
Liabilities     
      
Non-interest-bearing deposits$  138,124 $  148,611 $  151,484 $  138,079 $  136,873 
Interest-bearing deposits   577,263    577,215    565,799    571,512    557,118 
      
  Total deposits   715,387    725,826    717,283    709,591    693,991 
      
Federal Home Loan Bank advances   51,165    81,071    64,660    71,523    48,831 
Other borrowings   22,870    8,379    4,864    1,140    8,513 
Senior subordinated notes   2,500    2,500    2,500    2,500    2,500 
Junior subordinated debentures   7,732    7,732    7,732    7,732    7,732 
Accrued expenses and other liabilities   9,047    9,650    8,144    13,412    8,302 
      
  Total liabilities   808,701    835,158    805,183    805,898    769,869 
      
Stockholders' equity     
      
Preferred stock - no par value:     
  Authorized - 30,000 shares; no shares issued or outstanding   -     -     -     -     -  
Common stock - no par value with a stated value of $1.00 per share:     
  Authorized - 6,000,000 shares; Issued - 5,490,798 shares     
  Outstanding - 4,495,110, 4,487,895, 4,488,720, 4,491,789 and    1,830    1,830    1,830    1,830    1,830 
  4,486,245 shares, respectively     
Additional paid-in capital   7,497    7,430    7,384    7,339    7,446 
Retained earnings   88,314    85,583    83,861    81,200    79,226 
Accumulated other comprehensive loss, net of tax   (227)   (1,651)   (2,649)   (2,059)   (1,759)
Treasury stock, at cost - 995,688, 1,002,903, 1,002,078, 999,009 and   (12,352)   (12,352)   (12,332)   (12,262)   (12,391)
  1,004,553 shares, respectively     
      
  Total stockholders' equity   85,062    80,840    78,094    76,048    74,352 
      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$  893,763 $  915,998 $  883,277 $  881,946 $  844,221 
      


PSB Holdings, Inc. 
Loan Composition by Purpose 
    Quarter ended:  
(dollars in thousands)March 31,
2019
December 31,
2018
September 30,
2018
June 30,
2018
March 31,
2018
       
 Residential real estate:     
       
 One to four family$  116,393 $  117,970 $  120,130 $  119,736 $  120,542 
 HELOC loans 23,631    24,746    25,880    25,529    24,730 
 Residential construction & development 18,893    16,413    13,483    12,464    12,174 
 Residential vacant land 5,052    5,370    5,507    7,017    6,451 
       
 Total Residential real estate   163,969     164,499     165,000     164,746     163,897  
       
 Commercial/Agricultural real estate:    
       
 Owner occupied:     
       
   Commercial real estate  147,435    145,480    141,043    136,248    135,170 
   SBA commercial real estate 1,741    1,769    1,888    1,560    1,863 
   Agriculture real estate 5,078    4,968    4,895    4,547    4,392 
   Construction and land development 6,523    1,186    3,031    1,088    -  
       
 Total Owner occupied   160,777     153,403     150,857     143,443     141,425  
       
 Non-owner occupied:     
       
   Commercial real estate 161,647    147,246    134,860    135,162    137,939 
   SBA commercial real estate 146    151    156    160    161 
   Agricultural real estate 0    315    321    331    338 
   Construction and land development 22,014    34,452    29,450    30,289    26,014 
   Commercial vacant land 15,404    13,800    14,414    11,535    10,809 
       
 Total Non-owner occupied   199,211     195,964     179,201     177,477     175,261  
       
 Commercial/Agricultural non-real estate:    
       
 Municipal non-real estate 6,353    6,806    6,661    8,532    6,037 
 Commercial line 58,117    68,300    62,357    64,652    51,684 
 Other commercial non-real estate 69,073    65,829    68,446    69,474    65,845 
 SBA commercial non-real estate 2,169    2,278    2,557    2,785    2,893 
 Agricultural non-real estate 3,699    3,994    4,366    3,396    3,095 
       
 Total Commercial/Ag. non-real estate   139,411     147,207     144,387     148,839     129,554  
       
 Consumer non-real estate:     
       
 Consumer installment 2,793    2,755    2,629    2,415    2,183 
 Consumer line 344    243    216    220    250 
 Other consumer 190    218    212    199    204 
       
 Total Consumer non-real estate   3,327     3,216     3,057     2,834     2,637  
       
 Gross loans   666,695     664,289     642,502     637,339     612,774  
       
 Net deferred loan costs   272    213    212    237    211 
 Overdrafts   296    211    278    217    166 
 Allowance for loan losses   (6,507)   (6,232)   (6,280)   (6,173)   (6,387)
       
 Total loans receivable$   660,756  $   658,481  $   636,712  $   631,620  $   606,764  
       


PSB Holdings, Inc. 
Deposit Composition 
  March 31,    December 31,
(dollars in thousands) 2019   2018   2018 
 $% $% $%
         
Non-interest bearing demand$  138,12419.3% $  136,87319.7% $  148,61120.5%
Interest-bearing demand and savings   243,46334.0%    237,32734.2%    254,85735.1%
Money market deposits   160,92722.5%    144,33420.8%    145,30020.0%
Retail and local time deposits <= $250   99,67913.9%    97,75214.1%    99,58413.8%
         
Total core deposits   642,19389.7%    616,28688.8%    648,35289.4%
Retail and local time deposits > $250   24,9903.5%    18,7022.7%    22,1313.0%
Broker & national time deposits <= $250   2,7320.4%    5,8470.8%    2,4830.3%
Broker & national time deposits > $250   45,4726.4%    53,1567.7%    52,8607.3%
Totals$  715,387100.0% $  693,991100.0% $  725,826100.0%
         


Nonperforming Assets as of:March December 31,
(dollars in thousands) 2019  2018   2018 
     
Nonaccrual loans (excluding restructured loans)$  4,827 $  3,540  $  3,422 
Nonaccrual restructured loans   283    862     313 
Restructured loans not on nonaccrual   2,305    2,010     2,284 
Accruing loans past due 90 days or more   -     -      -  
     
Total nonperforming loans   7,415    6,412     6,019 
Foreclosed assets   113    260     113 
     
Total nonperforming assets$  7,528 $  6,672  $  6,132 
     
Nonperforming loans as a % of gross loans receivable 1.11% 1.05%  0.91%
Total nonperforming assets as a % of total assets 0.84% 0.79%  0.67%
Allowance for loan losses as a % of nonperforming loans 87.75% 99.61%  103.54%
     


PSB Holdings, Inc. 
Average Balances ($000) and Interest Rates 
(dollars in thousands) 
  Quarter ended March 31, 2019   Quarter ended March 31, 2018 
  Average  Yield /  Average  Yield /
  Balance  Interest Rate  Balance  Interest Rate
Assets       
Interest-earning assets:       
  Loans (1)(2)$  664,845 $  8,3465.09% $  614,616 $  6,9844.61%
  Taxable securities   105,120    7132.75%    111,596    6762.46%
  Tax-exempt securities (2)   65,111    5013.12%    56,432    4243.05%
  FHLB stock   2,015    357.04%    1,871    234.99%
  Other   21,342    1262.39%    18,494    711.56%
        
  Total (2)   858,433    9,7214.59%    803,009    8,1784.13%
        
Non-interest-earning assets:       
  Cash and due from banks   11,325       10,711   
  Premises and equipment,       
  net   10,382       10,539   
  Cash surrender value ins   16,405       15,166   
  Other assets   8,977       8,851   
  Allowance for loan       
  losses   (6,259)      (6,413)  
        
  Total$  899,263    $  841,863   
        
Liabilities & stockholders' equity      
Interest-bearing liabilities:       
  Savings and demand       
  deposits$  253,299 $  4720.76% $  240,557 $  2680.45%
  Money market deposits   146,625    2990.83%    138,143    1450.43%
  Time deposits   175,550    7821.81%    175,964    5651.30%
  FHLB borrowings   64,330    3091.95%    52,311    1901.47%
  Other borrowings   19,788    511.05%    4,831    20.17%
  Senior sub. notes   2,500    284.54%    2,500    264.22%
  Junior sub. debentures   7,732    914.77%    7,732    663.46%
        
  Total   669,824    2,0321.23%    622,038    1,2620.82%
        
Non-interest-bearing liabilities:      
  Demand deposits   137,783       137,135   
  Other liabilities   9,140       8,664   
  Stockholders' equity   82,516       74,026   
        
  Total$  899,263    $  841,863   
        
Net interest income $  7,689   $  6,916 
Rate spread  3.36%   3.31%
Net yield on interest-earning assets 3.63%   3.49%
        
(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 ($000) and Interest Rates 
(dollars in thousands) 
  Quarter ended March 31, 2019   Quarter ended December 31, 2018 
  Average  Yield /  Average  Yield /
  Balance  Interest Rate  Balance  Interest Rate
Assets       
Interest-earning assets:       
  Loans (1)(2)$  664,845 $  8,3465.09% $  652,342 $  8,1374.95%
  Taxable securities   105,120    7132.75%    105,269    7142.69%
  Tax-exempt securities (2)   65,111    5013.12%    68,576    5373.11%
  FHLB stock   2,015    357.04%    2,004    254.95%
  Other   21,342    1262.39%    13,748    772.22%
        
  Total (2)   858,433    9,7214.59%    841,939    9,4904.47%
        
Non-interest-earning assets:       
  Cash and due from banks   11,325       11,855   
  Premises and equipment,       
  net   10,382       10,311   
  Cash surrender value ins   16,405       15,751   
  Other assets   8,977       9,796   
  Allowance for loan       
  losses   (6,259)      (6,279)  
        
  Total$  899,263    $  883,373   
        
Liabilities & stockholders' equity      
Interest-bearing liabilities:       
  Savings and demand       
  deposits$  253,299 $  4720.76% $  235,839 $  3700.62%
  Money market deposits   146,625    2990.83%    143,618    2800.77%
  Time deposits   175,550    7821.81%    184,178    7851.69%
  FHLB borrowings   64,330    3091.95%    64,833    3151.93%
  Other borrowings   19,788    511.05%    11,139    180.64%
Senior sub. notes   2,500    284.54%    2,500    284.44%
  Junior sub. debentures   7,732    914.77%    7,732    924.72%
        
  Total   669,824    2,0321.23%    649,839    1,8881.15%
        
Non-interest-bearing liabilities:       
  Demand deposits   137,783       144,683   
  Other liabilities   9,140       9,326   
  Stockholders' equity   82,516       79,525   
        
  Total$  899,263    $  883,373   
        
Net interest income $  7,689   $  7,602 
Rate spread  3.36%   3.32%
Net yield on interest-earning assets 3.63%   3.58%
        
(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%.
       

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

Source: PSB Holdings, Inc.
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