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Peoples State Bank

Press Release

PSB Reports Second Quarter 2019 Earnings of $2.6 Million or $0.57 Per Share; Loan Growth Up 7% Over the Past Year

Company Release - 7/29/2019 8:30 AM ET

WAUSAU, Wis., July 29, 2019 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank serving North Central Wisconsin, reported second quarter earnings ending June 30, 2019 of $2.57 million, or $0.57 per share, compared to earnings of $0.61 per share on net income of $2.73 million during the March 2019 quarter and $0.62 per share one year earlier on earnings of $2.77 million.  The second quarter earnings included expenses associated with the planned consolidation of a branch office partially offset by an increase in gains on the sale of mortgage loans and security gains.  Loan production remained strong, with net loans receivable expanding 2.6% from the previous quarter and 7.4% relative to one year earlier.

“During the past quarter, the bank decided to consolidate its two Rhinelander, WI branch locations following a branch remodeling to be completed in the September 2019 quarter. The branch to be closed was purchased in 2014 from Baraboo State Bank. Due to current real estate market conditions, we recorded a write-down of the branch to be closed, which negatively impacted net income during the June 2019 quarter by $428,000 or $0.10 per share, after income tax benefits. The consolidation combines our retail and commercial lending activities resulting in easier access and full-service for customers from one Rhinelander location, where we continue to be the leader in deposit market share. The change is also expected to improve operating efficiency, which should result in improved branch profitability,” stated Scott Cattanach, President and CEO.

Financial Highlights (at or for the periods ended June 30, 2019, compared to March 31, 2019 and /or June 30, 2018, as applicable):

  • The net interest margin increased to 3.72% for the quarter ended June 30, 2019, compared to 3.63% the previous quarter and 3.67% for the second quarter one year earlier.  The net interest margin for the second quarter of 2019 reflects a problem loan interest recovery of $109,000 versus an interest recovery of $205,000 for the second quarter of 2018.  Excluding the interest recovery for the second quarter of 2019, the net interest margin would have been 3.66%, compared to the interest recovery adjusted margin for the quarter ended June 2018 of 3.57%.
     
  • Return on shareholders’ equity was 11.90% for the quarter compared to 13.42% one quarter earlier and 14.57% for the second quarter one year earlier.  Return on average assets was 1.15% for the second quarter of 2019 compared to 1.23% the previous quarter and 1.31% for the second quarter one year earlier. Excluding the expenses associated with consolidating the Rhinelander office, the return on shareholders’ equity was 13.89% for the quarter ended June 30, 2019 and the return on average assets was 1.35% for the same period.
     
  • The efficiency ratio was 62.83% for the second quarter compared to 58.59% one quarter earlier and 57.56% in the year ago quarter.  Excluding the expenses associated with closing the Rhinelander office, the efficiency ratio would have been 58.47%.
     
  • Tangible net book value was $19.41 per share at June 30, 2019, an increase of 2.75% from $18.89 per share as of March 31, 2019 and 14.85% from $16.90 per share at June 30, 2018.

Balance Sheet and Asset Quality Review

Total assets were $901.3 million as of June 30, 2019, compared to $893.8 million as of March 31, 2019.  Relative to the prior quarter, total assets increased $7.6 million.  Meanwhile, total loans receivable increased $17.5 million, partially fueled by origination activity in our Milwaukee loan production office, which grew net loans $6.3 million during the quarter to $61.0 million.  Most of the loan growth was in the commercial/agricultural real estate loan portfolio, which increased to $370.3 million at June 30, 2019 from $360.0 million three months earlier.  The remainder of the loan growth consisted of commercial/agricultural non-real estate loans which increased to $145.5 million at June 30, 2019 from $139.4 million at March 31, 2019.  Non-owner occupied commercial/agricultural real estate loans represented the largest component of the loan portfolio at 30.1% of gross loans at June 30, 2019, followed by residential real estate loans at 24.1%, owner occupied commercial/agricultural real estate loans at 24.0%, commercial loans at 21.3% and consumer loans at 0.5%.  The allowance for loan losses was 0.97% of gross loans at June 30, 2019, compared to 0.98% at the end of the previous quarter and 0.97% one year earlier.  The annualized net charge-offs to average loans was 0.00% for the quarter ended June 30, 2019 compared to 0.08% at the end of the previous quarter and 0.16% one year earlier.

Non-performing assets declined to 0.42% of total assets at June 30, 2019, compared to 0.84% at March 31, 2019, and 0.67% at June 30, 2018.  The decrease in non-performing assets largely relates to a return to accrual status of a commercial real estate credit that leased property to the retailer Shopko. The borrower has secured a replacement tenant for the former Shopko property and loan payments have continued uninterrupted. We continue to work towards a positive resolution with another borrower affected by the Shopko bankruptcy that is on our Watch List with a balance of $2.2 million  At June 30, 2019, non-performing assets consisted of $2.3 million in non-accruing loans, $1.0 million in restructured loans not on non-accrual, $270,000 in non-accrual restructured loans and $172,000 in foreclosed assets.

At June 30, 2019, cash and investments totaled $186.3 million compared to $195.7 million at March 31, 2019.  During the course of the quarter, cash and investments were reduced in order to fund loan growth and reduce wholesale funding.

Total deposits were $715.2 million at June 30, 2019 compared to $715.4 million at March 31, 2019. At June 30, 2019, interest-bearing demand and savings deposits accounted for 33.30% of total deposits, followed by money market deposits at 23.2%, noninterest-bearing demand deposits at 20.1% and retail and local time deposits at 14.0%.  Broker and national time deposits accounted for 5.9% of total deposits at June 30, 2019 versus 6.8% the prior quarter and 9.8% one year earlier. “We have made a concerted effort to reduce our reliance on wholesale deposits and build a stronger base of core deposits to support our lending operations,” stated Mark C. Oldenberg, Chief Financial Officer.

FHLB advances were $59.9 million at June 30, 2019 compared to $51.2 million at March 31, 2019 while other borrowings decreased to $19.2 million from $22.9 million over the same time period.

For the quarter ended June 30, 2019, stockholders’ equity increased $2.0 million, or 2.40%, to $87.1 million, compared to $85.1 million at March 31, 2019.  Tangible net book value per share increased 2.75% to $19.41 per share, at June 30, 2019, compared to $18.89 per share at March 31, 2019.  PSB’s tangible equity to total assets increased to 9.65% at June 30, 2019, compared to 9.50% at March 31, 2019. 

In the first six months of fiscal 2019, PSB repurchased 19,876 shares at an average cost of $23.37 per share versus 34,956 shares repurchased at an average cost of $23.18 for the first six months of fiscal 2018.

Operations Review

Net interest income totaled $7.8 million (on a net margin of 3.72%) for the second quarter of 2019, compared to $7.6 million (on net margin of 3.63%) for the first quarter of 2019 and $7.3 million (on a net margin of 3.67%) for the second quarter of 2018.  Net interest income growth from the prior quarter was partially due to a $109,000 interest recapture related to the return of a non-accruing loan to accrual status. Compared to the March 31, 2019 quarter, loans and investment yields increased 8 bps to 4.67% during the quarter ended June 30, 2019 while deposit and borrowing costs rose only 2 bps to 1.25%.  Loan yields increased to 5.15%, 5.09% adjusted for interest recapture, from 5.09% during the quarter ended June 30, 2019.

The cost of interest-bearing liabilities increased during the quarter but at a slower rate than the yield on interest-earning assets as fewer wholesale funding sources were utilized and lower costing core deposits were used to fund a larger portion of loans and investments.  Deposit costs increased to $1.63 million for the quarter ended June 30, 2019 from $1.55 million the previous quarter.  Meanwhile, FHLB advances costs declined to $230,000 from $309,000 due to lower advance utilization.

The provision for loan losses totaled $150,000 during the second quarter of 2019 compared to a provision of $400,000 for the prior linked quarter.  The provision primarily relates to new loan originations and an expanding loan portfolio.  The prior quarter reflected provisions taken related to a borrower impacted by the Shopko bankruptcy.

Total noninterest income for the second quarter of 2019 was $1.9 million compared to $2.1 million during the preceding quarter and $1.6 million for the second quarter of 2018.  The previous quarter included a gain realized on an equity investment of approximately $534,000, due to a change in accounting principle.  Service fees and gains on the sale of mortgage loans in the second quarter were $403,000 and $432,000, respectively, compared to $381,000 and $175,000 during the first quarter of 2019.  Commissions on investment and insurance sales declined to $310,000 from $333,000 the prior quarter.  At June 30, 2019, the bank had wealth assets under management totaling $236.6 million compared to $229.8 million at March 31, 2019 and $219.5 million at June 30, 2018.  The year over year growth of assets under management was 7.80%.

Noninterest expense was $6.2 million for the second quarter of 2019 compared to $5.7 million for the first quarter.  For the second quarter of 2019, noninterest expense increased due to $589,000 in expenses associated with writing down assets associated with the closing of the Rhinelander office.  Meanwhile salaries and benefit expenses and occupancy and facilities declined over the quarter, offset in part by increased data processing expenses.

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
    Jun. 30,Mar. 31,Dec. 31,Sep. 30,Jun. 30,
Earnings and dividends:   2019  2019  2018  2018  2018 
         
 Interest income  $9,839 $9,604 $9,365 $9,063 $8,685 
 Interest expense  $2,041 $2,032 $1,888 $1,805 $1,406 
 Net interest income  $7,798 $7,572 $7,477 $7,258 $7,279 
 Provision for loan losses  $150 $400 $60 $10 $30 
 Other noninterest income  $1,903 $2,117 $1,718 $1,615 $1,553 
 Other noninterest expense $6,167 $5,745 $5,829 $5,373 $5,145 
 Net income  $2,572 $2,731 $2,529 $2,661 $2,767 
         
 Basic earnings per share (3) $0.57 $0.61 $0.56 $0.59 $0.62 
 Diluted earnings per share (3) $0.57 $0.61 $0.56 $0.59 $0.62 
 Dividends declared per share (3) $0.20 $- $0.18 $- $0.18 
 Tangible net book value per share (4) $19.41 $18.89 $17.98 $17.37 $16.90 
         
 Semi-annual dividend payout ratio  16.95%n/a 15.65%n/a 15.49%
 Average common shares outstanding  4,486,022  4,494,568  4,488,397  4,490,621  4,492,059 
         
Balance sheet - average balances:      
         
 Loans receivable, net of allowances for loss$666,008 $658,586 $646,063 $634,469 $619,251 
 Assets  $893,998 $899,263 $883,373 $881,518 $845,816 
 Deposits  $713,910 $713,257 $708,318 $708,521 $691,706 
 Stockholders' equity  $86,656 $82,516 $79,525 $77,390 $76,150 
         
Performance ratios:       
         
 Return on average assets (1)  1.15% 1.23% 1.14% 1.20% 1.31%
 Return on average stockholders' equity (1) 11.90% 13.42% 12.62% 13.64% 14.57%
 Average stockholders' equity less accumulated     
 other comprehensive income (loss) to      
 average assets   9.68% 9.27% 9.22% 9.02% 9.21%
 Net loan charge-offs to average loans (1) 0.00% 0.08% 0.07% -0.06% 0.16%
 Nonperforming loans to gross loans  0.53% 1.11% 0.91% 0.84% 0.81%
 Nonperforming assets to total assets  0.42% 0.84% 0.67% 0.67% 0.67%
 Allowance for loan losses to gross loans 0.97% 0.98% 0.94% 0.98% 0.97%
 Nonperforming assets to tangible equity     
 plus the allowance for loan losses (4)  4.13% 8.40% 7.20% 7.14% 7.37%
 Net interest rate margin (1)(2)  3.72% 3.63% 3.58% 3.48% 3.67%
 Net interest rate spread (1)(2)  3.42% 3.36% 3.32% 3.23% 3.46%
 Service fee revenue as a percent of      
 average demand deposits (1)  1.14% 1.12% 1.15% 1.16% 1.13%
 Noninterest income as a percent      
 of gross revenue   16.21% 18.06% 15.50% 15.12% 15.17%
 Efficiency ratio (2)   62.83% 58.59% 62.54% 59.75% 57.56%
 Noninterest expenses to average assets (1) 2.77% 2.59% 2.62% 2.42% 2.44%
 Tangible equity to actual assets  9.65% 9.50% 8.81% 8.83% 8.61%
         
Stock price information:       
         
 High  $24.75 $23.45 $27.50 $27.45 $24.67 
 Low  $22.00 $21.25 $21.10 $24.08 $23.08 
 Last trade value at quarter-end $24.00 $22.75 $22.50 $27.20 $24.67 
         
(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,Jun. 30,Mar. 31,Dec. 31,Sep. 30,Jun. 30,
except per share data - unaudited)201920192018
2018
2018
         
Interest and dividend income:     
Loans, including fees$8,629$8,334$8,125 $7,814 $7,579 
Securities:     
Taxable 730 713 714  732  677 
Tax-exempt 389 396 424  394  364 
Other interest and dividends 91 161 102  123  65 
         
Total interest and dividend income 9,839 9,604 9,365  9,063  8,685 
         
Interest expense:     
Deposits 1,634 1,553 1,435  1,324  1,078 
FHLB advances 230 309 315  359  221 
Other borrowings 57 51 18  1  3 
Senior subordinated notes 28 28 28  28  29 
Junior subordinated debentures 92 91 92  93  75 
         
Total interest expense 2,041 2,032 1,888  1,805  1,406 
         
Net interest income 7,798 7,572 7,477  7,258  7,279 
Provision for loan losses 150 400 60  10  30 
         
Net interest income after provision for loan losses 7,648 7,172 7,417  7,248  7,249 
         
Noninterest income:     
Service fees 403 381 419  415  389 
Gain on sale of mortgage loans 432 175 227  286  258 
Mortgage loan servicing, net 84 125 129  115  131 
Investment and insurance sales commissions 310 333 430  299  274 
Net gain on sale of securities 121 18 -  -  - 
Increase in cash surrender value of life insurance 101 98 96  95  93 
Other noninterest income 452 987 417  405  408 
         
Total noninterest income 1,903 2,117 1,718  1,615  1,553 
         
Noninterest expense:     
Salaries and employee benefits 3,322 3,428 3,566  3,244  3,101 
Occupancy and facilities 591 601 526  499  534 
Loss (gain) on foreclosed assets 3 4 (17) (7) (18)
Data processing and other office operations 646 577 654  649  625 
Advertising and promotion 120 100 163  98  74 
FDIC insurance premiums 63 59 61  63  65 
Other noninterest expenses 1,422 976 876  827  764 
         
Total noninterest expense 6,167 5,745 5,829  5,373  5,145 
         
Income before provision for income taxes 3,384 3,544 3,306  3,490  3,657 
Provision for income taxes 812 813 777  829  890 
         
Net income$2,572$2,731$2,529 $2,661 $2,767 
Basic earnings per share$0.57$0.61$0.56 $0.59 $0.62 
Diluted earnings per share$0.57$0.61$0.56 $0.59 $0.62 

 

PSB Holdings, Inc.     
Consolidated Statements of Income     
    Three Months Ended Six Months Ended
(dollars in thousands,June June
except per share data - unaudited) 2019 2018   2019 2018 
         
Interest and dividend income:     
Loans, including fees$8,629$7,579  $16,963$14,550 
Securities:     
Taxable 730 677   1,443 1,353 
Tax-exempt 389 364   785 699 
Other interest and dividends 91 65   252 159 
         
Total interest and dividend income 9,839 8,685   19,443 16,761 
         
Interest expense:     
Deposits 1,634 1,078   3,187 2,056 
FHLB advances 230 221   539 411 
Other borrowings 57 3   108 5 
Senior subordinated notes 28 29   56 55 
Junior subordinated debentures 92 75   183 141 
         
Total interest expense 2,041 1,406   4,073 2,668 
         
Net interest income 7,798 7,279   15,370 14,093 
Provision for loan losses 150 30   550 60 
         
Net interest income after provision for loan losses 7,648 7,249   14,820 14,033 
         
Noninterest income:     
Service fees 403 389   784 777 
Gain on sale of mortgage loans - -   - - 
Mortgage banking income 516 389   816 771 
Investment and insurance sales commissions 310 274   643 578 
Net gain on sale of securities 121 -   139 - 
Increase in cash surrender value of life insurance 101 93   199 182 
Other noninterest income 452 408   1,439 835 
         
Total noninterest income 1,903 1,553   4,020 3,143 
         
Noninterest expense:     
Salaries and employee benefits 3,322 3,101   6,750 6,384 
Occupancy and facilities 591 534   1,192 1,090 
Loss (gain) on foreclosed assets 3 (18)  7 (10)
Data processing and other office operations 646 625   1,223 1,260 
Advertising and promotion 120 74   220 159 
FDIC insurance premiums 63 65   122 123 
Other noninterest expenses 1,422 764   2,398 1,505 
         
Total noninterest expense 6,167 5,145   11,912 10,511 
         
Income before provision for income taxes 3,384 3,657   6,928 6,665 
Provision for income taxes 812 890   1,625 1,543 
         
Net income$2,572$2,767  $5,303$5,122 
Basic earnings per share$0.57$0.62  $1.18$1.14 
Diluted earnings per share$0.57$0.62  $1.18$1.14 

 

PSB Holdings, Inc.     
Consolidated Statements of Comprehensive Income    
         
    Three Months Ended Six Months Ended
    June 30, June 30,
(dollars in thousands - unaudited) 2019  2018   2019  2018 
         
Net income$2,572 $2,767  $5,303 $5,122 
         
Other comprehensive income, net of tax:     
         
 Unrealized gain (loss) on securities available     
  for sale 995  (232)  2,510  (1,280)
         
 Reclassification adjustment for security     
  gain included in net income (88) -   (101) - 
         
 Amortization of unrealized gain included in net     
  income on securities available for sale     
  transferred to securities held to maturity (1) (10)  (6) (25)
         
 Unrealized loss on interest rate swap (142) (60)  (218) (59)
         
 Reclassification adjustment of interest rate     
  swap settlements included in earnings 6  2   9  2 
         
         
Other comprehensive income (loss) 770  (300)  2,194  (1,362)
         
Comprehensive income$3,342 $2,467  $7,497 $3,760 
         

 

PSB Holdings, Inc.     
Consolidated Balance Sheets     
June 30, 2019, March 31, 2019, September 30, and June 30, 2018 unaudited, December 31, 2018 derived from audited financial statements     
 Jun. 30,Mar. 31,Dec. 31,Sep. 30,Jun. 30,
(dollars in thousands, except per share data) 2019  2019  2018  2018  2018 
Assets     
      
Cash and due from banks$11,825 $8,917 $18,923 $15,348 $11,876 
Interest-bearing deposits 2,306  349  501  930  453 
Federal funds sold 4,552  12,989  24,554  14,246  19,493 
      
Cash and cash equivalents 18,683  22,255  43,978  30,524  31,822 
Securities available for sale (at fair value) 123,586  127,368  113,821  114,997  114,939 
Securities held to maturity (fair values of $42,511, $43,338, $57,607, $59,341 and    
$61,487 respectively) 42,074  43,061  58,311  60,421  62,299 
Bank certificates of deposit (at cost) 1,984  2,976  2,976  2,976  2,976 
Loans held for sale 50  245  358  -  405 
Loans receivable, net 678,247  660,756  658,481  636,712  631,620 
Accrued interest receivable 2,844  2,826  2,777  2,709  2,544 
Foreclosed assets 172  113  113  483  736 
Premises and equipment, net 9,749  10,426  10,209  10,339  10,524 
Mortgage servicing rights, net 1,738  1,781  1,805  1,805  1,817 
Federal Home Loan Bank stock (at cost) 1,662  1,657  2,330  2,011  2,297 
Cash surrender value of bank-owned life insurance 16,564  16,463  16,365  15,407  15,312 
Other assets 3,961  3,836  4,474  4,893  4,655 
      
TOTAL ASSETS$901,314 $893,763 $915,998 $883,277 $881,946 
      
Liabilities     
      
Non-interest-bearing deposits$143,423 $138,124 $148,611 $151,484 $138,079 
Interest-bearing deposits 571,794  577,263  577,215  565,799  571,512 
      
Total deposits 715,217  715,387  725,826  717,283  709,591 
      
Federal Home Loan Bank advances 59,915  51,165  81,071  64,660  71,523 
Other borrowings 19,179  22,870  8,379  4,864  1,140 
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 9,668  9,047  9,650  8,144  13,412 
      
Total liabilities 814,211  808,701  835,158  805,183  805,898 
      
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 - 4,480,585, 4,495,110, 4,487,895, 4,488,720 and     
4,491,789 shares, respectively 1,830  1,830  1,830  1,830  1,830 
Additional paid-in capital 7,490  7,497  7,430  7,384  7,339 
Retained earnings 89,986  88,314  85,583  83,861  81,200 
Accumulated other comprehensive income (loss), net of tax 543  (227) (1,651) (2,649) (2,059)
Treasury stock, at cost - 1,010,213, 995,688, 1,002,903, 1,002,078 and     
999,009 shares, respectively (12,746) (12,352) (12,352) (12,332) (12,262)
      
Total stockholders' equity 87,103  85,062  80,840  78,094  76,048 
      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$901,314 $893,763 $915,998 $883,277 $881,946 

 

PSB Holding, Inc.     
Loan Composition by Purpose     
Quarter-ended (dollars in thousands)June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018
Total Loans     
Residential real estate     
 One to four family$117,093 $116,393 $117,970 $120,130 $119,736 
 HELOC loans 22,158  23,631  24,746  25,880  25,529 
 Residential construction & development 20,937  18,893  16,413  13,483  12,464 
 Residential vacant land 4,680  5,052  5,370  5,507  7,017 
 Total Residential real estate   164,868     163,969     164,499     165,000     164,746  
       
Commercial/Agricultural real estate     
 Owner occupied     
 Commercial real estate 149,507  147,435  145,480  141,043  136,248 
 SBA commercial real estate 1,386  1,741  1,769  1,888  1,560 
 Agriculture real estate 5,764  5,078  4,968  4,895  4,547 
 Construction and land development 7,832  6,523  350  -  - 
 Total Owner occupied   164,489     160,777     152,567     147,826     142,355  
       
 Non-owner occupied     
 Commercial real estate 168,809  161,647  147,246  134,860  135,162 
 SBA commercial real estate 141  146  151  156  160 
 Agricultural real estate -  -  315  321  331 
 Construction and land development 22,159  22,014  35,288  32,481  31,377 
 Commercial vacant land 14,702  15,404  13,800  14,414  11,535 
 Total Non-owner occupied   205,811     199,211     196,800     182,232     178,565  
       
Commercial/Agricultural non-real estate     
 Municipal non-real estate 9,017  6,353  6,806  6,661  8,532 
 Commercial line 65,252  58,117  68,300  62,357  64,652 
 Other commercial non-real estate 65,500  69,073  65,829  68,446  69,474 
 SBA commercial non-real estate 2,252  2,169  2,278  2,557  2,785 
 Agricultural non-real estate 3,491  3,699  3,994  4,366  3,396 
 Total Commercial/Agricultural non-real estate   145,512     139,411     147,207     144,387     148,839  
       
Consumer non-real estate     
 Consumer installment 3,093  2,793  2,755  2,629  2,415 
 Consumer line 304  344  243  216  220 
 Other consumer 195  190  218  212  199 
 Total Consumer non-real estate   3,592     3,327     3,216     3,057     2,834  
Gross loans   684,272     666,695     664,289     642,502     637,339  
       
 Net deferred loan costs 300  272  213  212  237 
 Overdrafts 339  296  211  278  217 
 Allowance for loan losses (6,664) (6,507) (6,232) (6,280) (6,173)
Total loans receivable$   678,247  $   660,756  $   658,481  $   636,712  $   631,620  

 

PSB Holdings, Inc.        
Deposit Composition        
 June 30, December 31,
(dollars in thousands) 2019   2018   2018 
 $% $% $%
         
Non-interest bearing demand$143,42320.1% $138,07919.5% $148,61120.5%
Interest-bearing demand and savings 237,92233.3%  245,73434.6%  254,85735.1%
Money market deposits 165,91823.2%  138,80719.6%  145,30020.0%
Retail and local time deposits <= $250 100,56014.0%  98,06613.8%  99,58413.8%
         
Total core deposits 647,82390.6%  620,68687.5%  648,35289.4%
Wholesale interest-bearing demand -0.0%  -0.0%  -0.0%
Retail and local time deposits > $250 25,0773.5%  18,9522.7%  22,1313.0%
Broker & national time deposits <= $250 3,4700.5%  4,3690.6%  2,4830.3%
Broker & national time deposits > $250 38,8475.4%  65,5849.2%  52,8607.3%
Totals$715,217100.0% $709,591100.0% $725,826100.0%

 

Nonperforming Assets as of:June December 31,
(dollars in thousands) 2019  2018   2018 
      
Nonaccrual loans (excluding restructured loans)$2,306 $2,856  $3,422 
Nonaccrual restructured loans 270  327   313 
Restructured loans not on nonaccrual 1,048  1,998   2,284 
Accruing loans past due 90 days or more -  -   - 
      
Total nonperforming loans 3,624  5,181   6,019 
Foreclosed assets 172  736   113 
      
Total nonperforming assets$3,796 $5,917  $6,132 
      
Nonperforming loans as a % of gross loans receivable 0.53% 0.81%  0.91%
Total nonperforming assets as a % of total assets  0.42% 0.67%  0.67%
Allowance for loan losses as a % of nonperforming loans 183.89% 119.15%  103.54%

 

PSB Holdings, Inc.       
Average Balances ($000) and Interest Rates     
(dollars in thousands)       
   Quarter ended June 30, 2019 Quarter ended June 30, 2018
   Average Yield / Average Yield /
   BalanceInterestRate BalanceInterestRate
Assets        
Interest-earning assets:       
 Loans (1)(2)$672,576 $8,6415.15% $625,518 $7,5894.87%
 Taxable securities 106,737  7302.74%  107,976  6772.51%
 Tax-exempt securities (2) 61,851  4923.19%  60,746  4613.04%
 FHLB stock 1,593  246.04%  1,875  183.85%
 Other 11,470  672.34%  11,291  471.67%
          
 Total (2) 854,227  9,9544.67%  807,406  8,7924.37%
          
Non-interest-earning assets:       
 Cash and due from banks 10,837     9,575   
 Premises and equipment,       
 net 10,422     10,568   
 Cash surrender value ins 16,506     15,261   
 Other assets 8,574     9,273   
 Allowance for loan       
 losses (6,568)    (6,267)  
          
 Total$893,998    $845,816   
          
Liabilities & stockholders' equity      
Interest-bearing liabilities:       
 Savings and demand       
 deposits$239,929 $4170.70% $237,466 $2890.49%
 Money market deposits 161,070  3920.98%  138,464  1590.46%
 Time deposits 171,501  8251.93%  177,366  6301.42%
 FHLB borrowings 51,014  2301.81%  54,748  2211.62%
 Other borrowings 22,302  571.03%  4,450  30.27%
 Senior sub. notes 2,500  284.49%  2,500  294.65%
 Junior sub. debentures 7,732  924.77%  7,732  753.89%
          
 Total 656,048  2,0411.25%  622,726  1,4060.91%
          
Non-interest-bearing liabilities:      
 Demand deposits 141,410     138,410   
 Other liabilities 9,884     8,530   
 Stockholders' equity 86,656     76,150   
          
 Total$893,998    $845,816   
          
Net interest income $7,913   $7,386 
Rate spread   3.42%   3.46%
Net yield on interest-earning assets 3.72%   3.67%
          
(1) Nonaccrual loans are included in the daily average loan balances outstanding.  
(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent  
basis using a federal tax rate of 21%.      

 

PSB Holdings, Inc.       
Average Balances ($000) and Interest Rates     
(dollars in thousands)       
   Six months ended June 30, 2019 Six months ended June 30, 2018
   Average Yield/ Average Yield/
   BalanceInterestRate BalanceInterestRate
Assets        
Interest-earning assets:        
 Loans (1)(2)$668,732 $16,9865.12% $620,098 $14,5734.74%
 Taxable securities 105,933  1,4432.75%  109,539  1,3532.49%
 Tax-exempt securities (2) 63,472  9943.16%  58,601  8853.05%
 FHLB stock 1,803  596.60%  1,873  414.41%
 Other 16,701  1932.33%  15,118  1181.57%
          
 Total (2) 856,641  19,6754.63%  805,229  16,9704.25%
          
Non-interest-earning assets:       
 Cash and due from banks 11,080     10,140   
 Premises and equipment,       
 net 10,402     10,554   
 Cash surrender value ins 16,456     15,214   
 Other assets 8,782     9,064   
 Allowance for loan       
 losses (6,415)    (6,340)  
          
 Total$896,946    $843,861   
          
Liabilities & stockholders' equity      
Interest-bearing liabilities:       
 Savings and demand        
 deposits $246,577 $8890.73% $239,003 $5570.47%
 Money market deposits  153,988  6910.90%<