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Peoples State Bank

Press Release

PSB Reports Third Quarter 2019 Earnings of $3.1 Million or $0.70 Per Share; Organic Loan and Deposit Growth Fuel Earnings

Company Release - 10/28/2019 8:30 AM ET

WAUSAU, Wis., Oct. 28, 2019 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank serving North Central Wisconsin, reported third quarter earnings ending September 30, 2019 of $3.13 million, or $0.70 per share, compared to earnings of $0.57 per share on net income of $2.57 million during the June 2019 quarter, and $0.59 per share one year earlier on earnings of $2.66 million. The third quarter earnings growth reflected higher net interest income, and lower levels of non-interest expense partially offset by lower non-interest income compared to the June 2019 quarter. During the quarter, the Bank received an FDIC assessment credit on deposit premiums as the federal insurance fund reached a targeted reserve level. Loan production remained strong, with net loans receivable expanding 2.0% from the previous quarter and 8.6% relative to one year earlier.

“PSB achieved record earnings in the September 2019 quarter as continued commercial real estate loan growth was joined by increase mortgage banking income while reduced operating expenses from the consolidation of our Rhinelander branches and the effective elimination of our FDIC insurance premiums as FDIC reserves reached their targeted level. In the first quarter of 2020, we also expect to convert our Milwaukee area LPO office into a new branch office, adding a new market for deposit growth,” stated Scott Cattanach, President and CEO.

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

  • Return on shareholders’ equity was 13.94% for the quarter compared to 11.90% one quarter earlier and 13.64% for the third quarter one year earlier. Return on average assets was 1.34% for the third quarter of 2019 compared to 1.15% the previous quarter and 1.20% for the third quarter one year earlier. Excluding a $428,000 write-down related to a branch consolidation, June 2019 return on equity was 13.89% and return on average assets was 1.35%.
     
  • The efficiency ratio improved to 55.14% for the third quarter compared to 62.83% one quarter earlier and 59.75% in the year ago quarter. Excluding the branch consolidation write-down, June 2019 efficiency ratio was 58.47%.
     
  • Total assets grew to $949.7 million at September 30, 2019 from $901.3 million one quarter earlier and $883.3 million one year earlier. Loan and deposit growth supported balance sheet expansion.
     
  • The net interest margin decreased to 3.60% for the quarter ended September 30, 2019, compared to 3.72% the previous quarter and 3.48% for the third quarter one year earlier. The net interest margin for the second quarter of 2019 would have been 3.66% before reflecting a problem loan interest recovery of $109,000.
     
  • Tangible net book value was $20.24 per share at September 30, 2019, an increase of 4.28% from $19.41 per share as of June 30, 2019 and 16.52% from $17.37 per share at September 30, 2018.

Balance Sheet and Asset Quality Review

Total assets were $949.7 million as of September 30, 2019, compared to $901.3 million as of June 30, 2019, an increase of $48.4 million, or 5.4%. Total loans receivable increased $13.3 million with much of the new loans consisting of loans secured by commercial real estate. The commercial/agricultural real estate loan portfolio increased to $385.5 million at September 30, 2019 from $370.3 million three months earlier. Non-owner occupied commercial real estate loans represented the largest component of the loan portfolio at 29.8% of gross loans at September 30, 2019, followed by owner occupied commercial real estate loans at 25.5%, residential real estate at 24.1%, commercial/agricultural loans at 20.0% and consumer loans at 0.7%. Total agricultural related loans represent 1.25% of the total loan portfolio. The allowance for loan losses remained at 0.97% of gross loans at September 30, 2019. The annualized net charge-offs to average loans was 0.01% for the quarter ended September 30, 2019 compared to 0.00% at the end of the previous quarter and a net recovery of 0.06% one year earlier.

Non-performing assets increased to 0.57% of total assets at September 30, 2019, compared to 0.42% at June 30, 2019, and 0.67% at September 30, 2018. Although a $1.5 million Shopko related loan was removed from non-accrual during the September 2019 quarter as the borrower acquired a replacement tenant, a separate $2.2 million Shopko loan was added to non-accrual status, although the borrower continues to make all scheduled payments while searching for a new tenant. At September 30, 2019, non-performing assets consisted of $3.6 million in non-accrual loans, $510,000 in non-accrual restructured loans, $747,000 in restructured loans not on non-accrual, and $572,000 in other real estate owned. The former Rhinelander branch office written down in connection with the June 2019 branch consolidation represents $400,000 of the other real estate owned.

At September 30, 2019, cash and investments totaled $219.8 million compared to $186.3 million at June 30, 2019. During the course of the quarter, cash and investments increased due to deposit growth and new Federal Home Loan Bank advances secured to support anticipated loan origination activity. FHLB advances were $85.5 million at September 30, 2019 compared to $59.9 million at June 30, 2019 while other borrowings decreased to $17.4 million from $19.2 million over the same time period.

Total deposits increased to $736.2 million at September 30, 2019 compared to $715.2 million at June 30, 2019, up 2.9%. At September 30, 2019, interest-bearing demand and savings deposits accounted for 33.0% of total deposits, followed by money market deposits at 23.1%, noninterest-bearing demand deposits at 21.7% and retail and local time deposits at 13.9%. Broker and national time deposits accounted for 4.9% of total deposits at September 30, 2019 versus 5.9% the prior quarter and 9.3% one year earlier.

For the quarter ended September 30, 2019, stockholders’ equity increased $3.5 million, or 4.04%, to $90.6 million, compared to $87.1 million at June 30, 2019. Tangible net book value per share increased 4.28%, to $20.24 per share, at September 30, 2019, compared to $19.41 per share at June 30, 2019. PSB’s tangible equity to total assets was 9.53% at September 30, 2019, compared to 9.65% at June 30, 2019. 

Operations Review

Net interest income totaled $7.9 million (on a net margin of 3.60%) for the third quarter of 2019, compared to $7.8 million (on net margin of 3.72%) for the second quarter of 2019 and $7.3 million (on a net margin of 3.48%) for the third quarter of 2018. The second quarter net interest income included interest recapture associated with repayment of a problem loan of $109,000, which increased quarterly net margin by 0.06%. Compared to the June 30, 2019 quarter, loans and investment yields decreased 5 bps, excluding the June 2019 problem loan interest recapture, to 4.57% during the quarter ended September 30, 2019 while deposit and borrowing costs rose one bp to 1.26%. The decline in proforma loan and investment yields (excluding the loan interest recapture) were partially due to a larger average balance of cash and cash equivalents held during the quarter and a decrease in the prime lending rate due to actions by the Federal Reserve. Proforma loan yields decreased to 5.04% from 5.15% during the quarter ended June 30, 2019, as many loans repriced lower as the prime rate declined. 

The cost of interest-bearing liabilities increased slightly during the quarter, reflecting higher rates associated with time deposits partially offset by lower rates on money market accounts and Federal Home Loan Bank borrowings as the Federal Reserve reduced their discount rate. Deposit costs increased to $1.65 million for the quarter ended September 30, 2019 from $1.63 million the previous quarter. While the balance of FHLB advances increased $25.6 million, the weighted average costs declined to 1.70% from 1.81% the previous quarter.

“The composition of the deposit portfolio continues to change as we rely less on brokered deposits as lower-cost core deposits have increased. Therefore, total deposits increased $21.0 million in the third quarter, while core deposits increased $28.3 million. Changes in our portfolio mix, along with short-term national market rates declining have created an expectation that our funding costs have peaked,” said Mark C. Oldenberg, Chief Financial Officer.

The provision for loan losses totaled $150,000 during the third quarter of 2019 compared to the same provision level for the prior linked quarter. The provision primarily relates to new loan originations and an expanding loan portfolio.  

Total noninterest income for the third quarter of 2019 was $1.8 million compared to $1.9 million during the preceding quarter and $1.6 million for the third quarter of 2018. Service fees in the third quarter were $348,000 compared to $403,000 during the second quarter of 2019. Service fees declined $55,000 for the third quarter after the Company elected to refund $73,000 to business checking account customers associated with a correction and change of a service charge first imposed during 2018. Gains on sale of mortgage loans increased to $463,000 for the third quarter from $432,000 in the second quarter of 2019 as falling long-term U.S. Treasury rates have spurred mortgage refinance activity. Commissions on investment and insurance sales declined to $276,000 from $310,000 the prior quarter. At September 30, 2019, the bank had wealth assets under management totaling $240.6 million compared to $236.6 million at June 30, 2019 and $227.8 million at September 30, 2018. The year over year growth of assets under management was 5.6%.

Noninterest expense was $5.4 million for the third quarter of 2019 compared to $6.2 million for the second 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. Additionally, the third quarter 2019 results reflect the elimination of FDIC insurance premiums as the FDIC insurance fund reached its targeted level saving $63,000 compared to the second quarter 2019. The Bank will not record further FDIC insurance expense until further notice from the FDIC.

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 eight 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
 Sep. 30,Jun. 30,Mar. 31,Dec. 31,Sep. 30,
Earnings and dividends: 2019  2019  2019  2018  2018 
      
Interest income$10,098 $9,839 $9,604 $9,365 $9,063 
Interest expense$2,154 $2,041 $2,032 $1,888 $1,805 
Net interest income$7,944 $7,798 $7,572 $7,477 $7,258 
Provision for loan losses$150 $150 $400 $60 $10 
Other noninterest income$1,802 $1,903 $2,117 $1,718 $1,615 
Other noninterest expense$5,437 $6,167 $5,745 $5,829 $5,373 
Net income$3,131 $2,572 $2,731 $2,529 $2,661 
      
Basic earnings per share (3)$0.70 $0.57 $0.61 $0.56 $0.59 
Diluted earnings per share (3)$0.70 $0.57 $0.61 $0.56 $0.59 
Dividends declared per share (3)$- $0.20 $- $0.18 $- 
Tangible net book value per share (4)$20.24 $19.41 $18.89 $17.98 $17.37 
      
Semi-annual dividend payout ration/a 16.95%n/a 15.65%n/a
Average common shares outstanding 4,473,583  4,486,022  4,494,568  4,488,397  4,490,621 
      
Balance sheet - average balances:     
      
Loans receivable, net of allowances for loss$689,057 $666,008 $658,586 $646,063 $634,469 
Assets$928,282 $893,998 $899,263 $883,373 $881,518 
Deposits$721,788 $713,910 $713,257 $708,318 $708,521 
Stockholders' equity$89,139 $86,656 $82,516 $79,525 $77,390 
      
Performance ratios:     
      
Return on average assets (1) 1.34% 1.15% 1.23% 1.14% 1.20%
Return on average stockholders' equity (1) 13.94% 11.90% 13.42% 12.62% 13.64%
Average stockholders' equity less accumulated    
other comprehensive income (loss) to     
average assets 9.52% 9.68% 9.27% 9.22% 9.02%
Net loan charge-offs to average loans (1) 0.01% 0.00% 0.08% 0.07% -0.06%
Nonperforming loans to gross loans 0.70% 0.53% 1.11% 0.91% 0.84%
Nonperforming assets to total assets 0.57% 0.42% 0.84% 0.67% 0.67%
Allowance for loan losses to gross loans 0.97% 0.97% 0.98% 0.94% 0.98%
Nonperforming assets to tangible equity plus the allowance for loan losses (4) 5.69% 4.13% 8.40% 7.20% 7.14%
Net interest rate margin (1)(2) 3.60% 3.72% 3.63% 3.58% 3.48%
Net interest rate spread (1)(2) 3.31% 3.42% 3.36% 3.32% 3.23%
Service fee revenue as a percent of average demand deposits (1) 0.90% 1.14% 1.12% 1.15% 1.16%
Noninterest income as a percent of gross revenue 15.14% 16.21% 18.06% 15.50% 15.12%
Efficiency ratio (2) 55.14% 62.83% 58.59% 62.54% 59.75%
Noninterest expenses to average assets (1) 2.32% 2.77% 2.59% 2.62% 2.42%
Tangible equity to actual assets 9.53% 9.65% 9.50% 8.81% 8.83%
      
Stock price information:     
      
High$27.50 $24.75 $23.45 $27.50 $27.45 
Low$23.55 $22.00 $21.25 $21.10 $24.08 
Last trade value at quarter-end$26.49 $24.00 $22.75 $22.50 $27.20 
      
(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 Income     
 Quarter Ended
(dollars in thousands,Sep. 30,Jun. 30,Mar. 31,Dec. 31,Sep. 30,
except per share data - unaudited)20192019201920182018
      
Interest and dividend income:     
Loans, including fees$8,823$8,629$8,334$8,125 $7,814 
Securities:     
Taxable 769 730 713 714  732 
Tax-exempt 378 389 396 424  394 
Other interest and dividends 128 91 161 102  123 
      
Total interest and dividend income 10,098 9,839 9,604 9,365  9,063 
      
Interest expense:     
Deposits 1,654 1,634 1,553 1,435  1,324 
FHLB advances 323 230 309 315  359 
Other borrowings 58 57 51 18  1 
Senior subordinated notes 28 28 28 28  28 
Junior subordinated debentures 91 92 91 92  93 
      
Total interest expense 2,154 2,041 2,032 1,888  1,805 
      
Net interest income 7,944 7,798 7,572 7,477  7,258 
Provision for loan losses 150 150 400 60  10 
      
Net interest income after provision for loan losses 7,794 7,648 7,172 7,417  7,248 
      
Noninterest income:     
Service fees 348 403 381 419  415 
Gain on sale of mortgage loans 463 432 175 227  286 
Mortgage loan servicing, net 89 84 125 129  115 
Investment and insurance sales commissions 276 310 333 430  299 
Net gain on sale of securities - 121 18 -  - 
Increase in cash surrender value of life insurance 105 101 98 96  95 
Other noninterest income 521 452 987 417  405 
      
Total noninterest income 1,802 1,903 2,117 1,718  1,615 
      
Noninterest expense:     
Salaries and employee benefits 3,372 3,322 3,428 3,566  3,244 
Occupancy and facilities 510 591 601 526  499 
Loss (gain) on foreclosed assets 4 3 4 (17) (7)
Data processing and other office operations 654 646 577 654  649 
Advertising and promotion 107 120 100 163  98 
FDIC insurance premiums - 63 59 61  63 
Other noninterest expenses 790 1,422 976 876  827 
      
Total noninterest expense 5,437 6,167 5,745 5,829  5,373 
      
Income before provision for income taxes 4,159 3,384 3,544 3,306  3,490 
Provision for income taxes 1,028 812 813 777  829 
      
Net income$3,131$2,572$2,731$2,529 $2,661 
Basic earnings per share$0.70$0.57$0.61$0.56 $0.59 
Diluted earnings per share$0.70$0.57$0.61$0.56 $0.59 
      



PSB Holdings, Inc.     
Consolidated Statements of Income     
 Three Months Ended Nine Months Ended
(dollars in thousands,September September
except per share data - unaudited)20192018 20192018
      
Interest and dividend income:     
Loans, including fees$8,823$7,814  $25,786$22,364 
Securities:     
Taxable 769 732   2,212 2,085 
Tax-exempt 378 394   1,163 1,093 
Other interest and dividends 128 123   380 282 
      
Total interest and dividend income 10,098 9,063   29,541 25,824 
      
Interest expense:     
Deposits 1,654 1,324   4,841 3,380 
FHLB advances 323 359   862 770 
Other borrowings 58 1   166 6 
Senior subordinated notes 28 28   84 83 
Junior subordinated debentures 91 93   274 234 
      
Total interest expense 2,154 1,805   6,227 4,473 
      
Net interest income 7,944 7,258   23,314 21,351 
Provision for loan losses 150 10   700 70 
      
Net interest income after provision for loan losses 7,794 7,248   22,614 21,281 
      
Noninterest income:     
Service fees 348 415   1,132 1,192 
Gain on sale of mortgage loans - -   - - 
Mortgage banking income 552 401   1,368 1,172 
Investment and insurance sales commissions 276 299   919 877 
Net gain on sale of securities - -   139 - 
Increase in cash surrender value of life insurance 105 95   304 277 
Other noninterest income 521 405   1,960 1,240 
      
Total noninterest income 1,802 1,615   5,822 4,758 
      
Noninterest expense:     
Salaries and employee benefits 3,372 3,244   10,122 9,628 
Occupancy and facilities 510 499   1,702 1,589 
Loss (gain) on foreclosed assets 4 (7)  11 (17)
Data processing and other office operations 654 649   1,877 1,909 
Advertising and promotion 107 98   327 257 
FDIC insurance premiums - 63   122 186 
Other noninterest expenses 790 827   3,188 2,332 
      
Total noninterest expense 5,437 5,373   17,349 15,884 
      
Income before provision for income taxes 4,159 3,490   11,087 10,155 
Provision for income taxes 1,028 829   2,653 2,372 
      
Net income$3,131$2,661  $8,434$7,783 
Basic earnings per share$0.70$0.59  $1.88$1.73 
Diluted earnings per share$0.70$0.59  $1.88$1.73 
      



PSB Holdings, Inc.     
Consolidated Statements of Comprehensive Income    
      
 Three Months Ended Nine Months Ended
 September 30, September 30,
(dollars in thousands - unaudited) 2019  2018   2019  2018 
      
Net income$3,131 $2,661  $8,434 $7,783 
      
Other comprehensive income, net of tax:     
      
Unrealized gain (loss) on securities available for sale 599  (639)  3,109  (1,919)
      
Reclassification adjustment for security gain included in net income -  -   (101) - 
      
Amortization of unrealized gain included in net income on securities available for sale transferred to securities held to maturity (2) (8)  (8) (33)
      
Unrealized loss on interest rate swap (46) 48   (264) (11)
      
Reclassification adjustment of interest rate swap settlements included in earnings 9  9   18  11 
      
Other comprehensive income (loss) 560  (590)  2,754  (1,952)
      
Comprehensive income$3,691 $2,071  $11,188 $5,831 
      



PSB Holdings, Inc.     
Consolidated Balance Sheets     
September 30, 2019, June 30, 2019, March 31, 2019, and September 30, 2018 unaudited, December 31, 2018 derived from audited financial statements     
 Sep. 30,Jun. 30,Mar. 31,Dec. 31,Sep. 30,
(dollars in thousands, except per share data) 2019  2019  2019  2018  2018 
Assets     
      
Cash and due from banks$17,954 $11,825 $8,917 $18,923 $15,348 
Interest-bearing deposits 1,059  2,306  349  501  930 
Federal funds sold 30,415  4,552  12,989  24,554  14,246 
      
Cash and cash equivalents 49,428  18,683  22,255  43,978  30,524 
Securities available for sale (at fair value) 127,587  123,586  127,368  113,821  114,997 
Securities held to maturity (fair values of $41,311, $42,511, $43,338, $57,607 and $59,341 respectively 40,791  42,074  43,061  58,311  60,421 
Bank certificates of deposit (at cost) 1,984  1,984  2,976  2,976  2,976 
Loans held for sale 335  50  245  358  - 
Loans receivable, net 691,289  678,247  660,756  658,481  636,712 
Accrued interest receivable 2,803  2,844  2,826  2,777  2,709 
Foreclosed assets 572  172  113  113  483 
Premises and equipment, net 10,212  9,749  10,426  10,209  10,339 
Mortgage servicing rights, net 1,720  1,738  1,781  1,805  1,805 
Federal Home Loan Bank stock (at cost) 2,173  1,662  1,657  2,330  2,011 
Cash surrender value of bank-owned life insurance 16,668  16,564  16,463  16,365  15,407 
Other assets 4,101  3,961  3,836  4,474  4,893 
      
TOTAL ASSETS$949,663 $901,314 $893,763 $915,998 $883,277 
      
Liabilities     
      
Non-interest-bearing deposits$159,897 $143,423 $138,124 $148,611 $151,484 
Interest-bearing deposits 576,288  571,794  577,263  577,215  565,799 
      
Total deposits 736,185  715,217  715,387  725,826  717,283 
      
Federal Home Loan Bank advances 85,496  59,915  51,165  81,071  64,660 
Other borrowings 17,411  19,179  22,870  8,379  4,864 
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 9,715  9,668  9,047  9,650  8,144 
      
Total liabilities 859,039  814,211  808,701  835,158  805,183 
      
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 - 4,471,216, 4,480,585, 4,495,110, 4,487,895 and     
4,488,720 shares, respectively 1,830  1,830  1,830  1,830  1,830 
Additional paid-in capital 7,543  7,490  7,497  7,430  7,384 
Retained earnings 93,117  89,986  88,314  85,583  83,861 
Accumulated other comprehensive income (loss), net of tax 1,103  543  (227) (1,651) (2,649)
Treasury stock, at cost - 1,019,582, 1,010,213, 995,688, 1,002,903 and     
1,002,078 shares, respectively (12,969) (12,746) (12,352) (12,352) (12,332)
      
Total stockholders' equity 90,624  87,103  85,062  80,840  78,094 
      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$949,663 $901,314 $893,763 $915,998 $883,277 
      



PSB Holding, Inc.       
Loan Composition by Purpose       
Quarter-ended (dollars in thousands)       
  Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Dec 31,
2018
Sep 30,
2018
Jun 30,
2018
Mar 31,
2018
Total Loans       
Residential real estate       
 One to four family119,620 117,093 116,393 117,970 120,130 119,736 120,542 
 HELOC loans22,855 22,158 23,631 24,746 25,880 25,529 24,730 
 Residential construction & development21,273 20,937 18,893 16,413 13,483 12,464 12,174 
 Residential vacant land4,299 4,680 5,052 5,370 5,507 7,017 6,451 
 Total Residential real estate168,047 164,868 163,969 164,499 165,000 164,746 163,897 
         
Commercial/Agricultural real estate       
 Owner occupied       
 Commercial real estate158,423 149,507 147,435 145,480 141,043 136,248 135,170 
 SBA commercial real estate1,367 1,386 1,741 1,769 1,888 1,560 1,863 
 Agriculture real estate5,139 5,764 5,078 4,968 4,895 4,547 4,392 
 Construction and land development12,742 7,832 6,523 350 - - - 
 Total Owner occupied177,671 164,489 160,777 152,567 147,826 142,355 141,425 
         
 Non-owner occupied       
 Commercial real estate179,136 168,809 161,647 147,246 134,860 135,162 137,939 
 SBA commercial real estate863 141 146 151 156 160 161 
 Agricultural real estate0 0 0 315 321 331 338 
 Construction and land development13,301 22,159 22,014 35,288 32,481 31,377 26,014 
 Commercial vacant land14,532 14,702 15,404 13,800 14,414 11,535 10,809 
 Total Non-owner occupied207,832 205,811 199,211 196,800 182,232 178,565 175,261 
         
Commercial/Agricultural non-real estate       
 Municipal non-real estate6,384 9,017 6,353 6,806 6,661 8,532 6,037 
 Commercial line62,991 65,252 58,117 68,300 62,357 64,652 51,684 
 Other commercial non-real estate64,418 65,500 69,073 65,829 68,446 69,474 65,845 
 SBA commercial non-real estate1,819 2,252 2,169 2,278 2,557 2,785 2,893 
 Agricultural non-real estate3,606 3,491 3,699 3,994 4,366 3,396 3,095 
 Total Commercial/Agricultural non-real estate139,218 145,512 139,411 147,207 144,387 148,839 129,554 
         
Consumer non-real estate       
 Consumer installment3,319 3,093 2,793 2,755 2,629 2,415 2,183 
 Consumer line1,343 304 344 243 216 220 250 
 Other consumer197 195 190 218 212 199 204 
 Total Consumer non-real estate4,859 3,592 3,327 3,216 3,057 2,834 2,637 
Gross loans697,627 684,272 666,695 664,289 642,502 637,339 612,774 
         
 Net deferred loan costs295 300 272 213 212 237 211 
 Overdrafts168 339 296 211 278 217 166 
 Allowance for loan losses(6,801)(6,664)(6,507)(6,232)(6,280)(6,173)(6,387)
Total loans receivable691,289 678,247 660,756 658,481 636,712 631,620 606,764 
         



PSB Holdings, Inc.        
Deposit Composition        
  September 30,  December 31,
(dollars in thousands)2019
 2018
 2018
 $% $% $%
         
Non-interest bearing demand$159,89721.70% $151,48421.10% $148,61120.50%
Interest-bearing demand and savings 242,71333.00%  246,81134.40%  254,85735.10%
Money market deposits 170,40323.10%  132,88718.50%  145,30020.00%
Retail and local time deposits <= $250 103,07414.00%  98,10113.70%  99,58413.80%
         
Total core deposits 676,08791.80%  629,28387.70%  648,35289.40%
Retail and local time deposits > $250 24,5493.30%  21,1943.00%  22,1313.00%
Broker & national time deposits <= $250 4,9600.70%  3,2250.40%  2,4830.30%
Broker & national time deposits > $250 30,5894.20%  63,5818.90%  52,8607.30%
Totals$ 736,185100.00% $ 717,283100.0% $ 725,826100.0%
         



Nonperforming Assets as of:September December 31,
(dollars in thousands)20192018 2018
      
Nonaccrual loans (excluding restructured loans)$3,609 $3,024  $3,422 
Nonaccrual restructured loans 510  325   313 
Restructured loans not on nonaccrual 747  2,054   2,284 
Accruing loans past due 90 days or more -  -   - 
      
Total nonperforming loans 4,866  5,403   6,019 
Other real estate owned 572  483   113 
      
Total nonperforming assets$5,438 $5,886   $6,132 
      
Nonperforming loans as a % of gross loans receivable 0.70% 0.84%  0.91%
Total nonperforming assets as a % of total assets 0.57% 0.67%  0.67%
Allowance for loan losses as a % of nonperforming loans  139.77% 116.23%  103.54%
      



PSB Holdings, Inc.       
Average Balances ($000) and Interest Rates     
(dollars in thousands)       
 Quarter ended September 30, 2019 Quarter ended September 30, 2018
 Average Yield / Average Yield /
 BalanceInterestRate BalanceInterestRate
Assets       
Interest-earning assets:       
Loans (1)(2)$695,776 $8,8385.04% $640,656 $7,8284.85%
Taxable securities 107,801  7692.83%  111,937  7322.59%
Tax-exempt securities (2) 59,537  4783.19%  64,535  4993.07%
FHLB stock 1,970  204.03%  2,260  203.51%
Other 22,493  1081.90%  21,145  1031.93%
        
Total (2) 887,577  10,2134.57%  840,533  9,1824.33%
        
Non-interest-earning assets:      
Cash and due from banks 12,113     11,702   
Premises and equipment,       
net 10,136     10,461   
Cash surrender value ins 16,606     15,351   
Other assets 8,569     9,658   
Allowance for loan       
losses (6,719)    (6,187)  
        
Total$928,282    $881,518   
        
Liabilities & stockholders' equity      
Interest-bearing liabilities:       
Savings and demand       
deposits$239,490 $4950.82% $246,596 $3930.63%
Money market deposits 164,801  3290.79%  133,873  1860.55%
Time deposits 164,899  8302.00%  186,146  7451.59%
FHLB borrowings 75,325  3231.70%  74,045  3591.92%
Other borrowings 22,079  581.04%  2,020  10.20%
Senior sub. notes 2,500  284.44%  2,500  284.44%
Junior sub. debentures 7,732  914.67%  7,732  934.77%
        
Total 676,826  2,1541.26%  652,912  1,8051.10%
        
Non-interest-bearing liabilities:      
Demand deposits 152,598     141,906   
Other liabilities 9,719     9,310   
Stockholders' equity 89,139     77,390   
        
Total$928,282    $881,518   
        
Net interest income $8,059   $7,377 
Rate spread  3.31%   3.23%
Net yield on interest-earning assets 3.60%   3.48%
        
(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, 2019Nine months ended September 30, 2018
 Average Yield/ Average Yield/
 BalanceInterestRate BalanceInterestRate
Assets       
Interest-earning assets:       
Loans (1)(2)$677,846 $25,8245.09% $627,026 $22,4014.78%
Taxable securities 106,559  2,2122.78%  110,104  2,0852.53%
Tax-exempt securities (2) 62,146  1,4723.17%  60,601  1,3843.05%
FHLB stock 1,859  795.68%  2,003  614.07%
Other 18,660  3012.16%  17,591  2211.68%
        
Total (2) 867,070  29,8884.61%  817,325  26,1524.28%
        
Non-interest-earning assets:      
Cash and due from banks 11,428     10,666   
Premises and equipment,       
net 10,313     10,522   
Cash surrender value ins 16,506     15,260   
Other assets 8,705     9,260   
Allowance for loan       
losses (6,517)    (6,288)  
        
Total$907,505    $856,745   
        
Liabilities & stockholders' equity      
Interest-bearing liabilities:       
Savings and demand       
deposits$244,189 $1,3840.76% $241,562 $9500.53%
Money market deposits 157,800  1,0200.86%  136,967  4900.48%
Time deposits 170,611  2,4371.91%  179,863  1,9401.44%
FHLB borrowings 63,597  8621.81%  60,448  7701.70%
Other borrowings 21,398  1661.04%  3,757  60.21%
Senior sub. notes 2,500  844.49%  2,500  834.44%
Junior sub. debentures 7,732  2744.74%  7,732  2344.05%
        
Total 667,827  6,2271.25%  632,829  4,4730.95%
        
Non-interest-bearing liabilities:      
Demand deposits 143,990     139,167   
Other liabilities 9,573     8,821   
Stockholders' equity 86,115     75,928   
        
Total$907,505    $856,745   
        
Net interest income $23,661   $21,679 
Rate spread  3.36%   3.33%
Net yield on interest-earning assets 3.65%   3.55%
        
(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%.  
       


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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