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Peoples State Bank

Press Release

PSB Reports Fourth Quarter 2019 Earnings of $2.8 Million or $0.63 Per Share; Net Income Increased 9% to Record $11.2 Million in 2019

Company Release - 1/27/2020 8:30 AM ET

WAUSAU, Wis., Jan. 27, 2020 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank serving North Central Wisconsin, reported fourth quarter earnings ending December 31, 2019 of $0.63 per share on net income of $2.81 million, compared to earnings of $0.70 per share on net income of $3.13 million during the September 2019 quarter, and $0.56 per share one year earlier on earnings of $2.53 million.  The fourth quarter earnings reflected slightly higher net interest income and higher levels of non-interest expense.  Loan production remained strong, with net loans receivable expanding 2.3% from the previous quarter and 7.5% relative to one year earlier.

For the year ended December 31, 2019, earnings increased 9.1% to $11.2 million, or $2.51 per share compared to $10.3 million, or $2.29 per share for the year ended December 31, 2018. 

“PSB achieved record earnings in 2019 as strong lending activity has fueled asset growth and a streamlined branch network added efficiencies.  As we begin 2020, we will convert our loan production office in Milwaukee into a full-service branch office in the first quarter.  We anticipate the move into this economically vibrant market will continue to fuel loan and deposit growth in years ahead,” stated Scott Cattanach, President and CEO.

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

  • Return on shareholders’ equity was 11.98% for the quarter compared to 13.94% one quarter earlier and 12.62% for the fourth quarter one year earlier.  Return on average assets was 1.17% for the fourth quarter of 2019, compared to 1.34% the previous quarter and 1.14% for the fourth quarter one year earlier.  For the year ended December 31, 2019, the return on shareholders’ equity was 12.77% and the return on average assets was 1.22%.
     
  • Total assets grew 2.7% to $974.9 million at December 31, 2019 from $949.7 million one quarter earlier and 6.4% from $916.0 million one year earlier. Net loan growth of $49.2 million and core deposit growth of $74.0 million supported balance expansion over the past year.
     
  • The net interest margin decreased to 3.53% for the quarter ended December 31, 2019, compared to 3.60% the previous quarter and 3.58% for the fourth quarter one year earlier.  The net interest margin for the fourth quarter was affected by a larger balance of investments relative to prior periods.
     
  • The efficiency ratio was 59.90% for the fourth quarter compared to 55.14% one quarter earlier and 62.54% in the year ago quarter. 
     
  • Tangible net book value was $20.72 per share at December 31, 2019, compared to $20.24 per share as of September 30, 2019 and $17.98 per share at December 31, 2018. Over the past year, tangible book value has grown 15.24%.

Balance Sheet and Asset Quality Review

Total assets were $974.9 million as of December 31, 2019, compared to $949.7 million as of September 30, 2019, an increase of $25.2 million, or 2.7%.  Total loans receivable increased $16.4 million with much of the new loans consisting of loans secured by commercial real estate. The commercial/agricultural real estate loan portfolio increased to $401.4 million at December 31, 2019 from $385.5 million three months earlier.  Non-owner occupied commercial real estate loans represented the largest component of the loan portfolio at 31.4% of gross loans at December 31, 2019, followed by owner occupied commercial real estate loans at 24.8%, residential real estate at 23.9%, commercial/agricultural loans at 19.0% and consumer loans at 0.7%.  Total agricultural related loans represent 1.16% of the total loan portfolio.  The non-owner occupied commercial real estate portfolio represents the largest portion of loan growth over the past year as the balance grew 14.0% from $196.8 million at December 31, 2018 to $224.3 million at December 31, 2019.  Meanwhile, over the past year, the commercial/agricultural non-real estate loans decreased 7.6% from $147.2 million at December 31, 2018 to $136.0 million at December 31, 2019. 

The allowance for loan losses remained at 0.97% of gross loans at December 31, 2019.  The annualized net charge-offs to average loans was unchanged at 0.01% for the quarter ended December 31, 2019, compared to the previous quarter and 0.07% one year earlier. Non-performing assets decreased to 0.55% of total assets at December 31, 2019, compared to 0.57% at September 30, 2019, and 0.67% at December 31, 2018.  At December 31, 2019, non-performing assets consisted of $3.7 million in non-accrual loans, $499,000 in non-accrual restructured loans, $676,000 in restructured loans not on non-accrual, and $460,000 in other real estate owned. 

At December 31, 2019, cash and investments totaled $228.5 million compared to $219.8 million at September 30, 2019.  During the course of the quarter, cash and investments increased due to deposit growth, a portion of which was used to support loan origination activity. 

Total deposits increased 6.2% to $781.8 million at December 31, 2019 compared to $736.2 million at September 30, 2019.  At December 31, 2019, interest-bearing demand and savings deposits accounted for 32.9% of total deposits, followed by money market deposits at 23.5%, noninterest-bearing demand deposits at 22.6% and retail and local time deposits at 16.7%.  Broker and national time deposits accounted for 4.3% of total deposits at December 31, 2019 versus 4.9% the prior quarter and 7.6% one year earlier.

FHLB advances decreased to $73.5 million at December 31, 2019 compared to $85.5 million at September 30, 2019 and other borrowings decreased to $6.1 million from $17.4 million over the same time period.       

For the quarter ended December 31, 2019, stockholders’ equity increased $2.1 million, or 2.28%, to $92.7 million, compared to $90.6 million at September 30, 2019.  Tangible net book value per share increased 2.37%, to $20.72 per share, at December 31, 2019, compared to $20.24 per share at September 30, 2019.  PSB’s tangible equity to total assets was 9.50% at December 31, 2019, compared to 9.53% at September 30, 2019. 

Operations Review

Net interest income totaled $8.0 million (on a net margin of 3.53%) for the fourth quarter of 2019, compared to $7.9 million (on net margin of 3.60%) for the third quarter of 2019 and $7.5 million (on a net margin of 3.58%) for the fourth quarter of 2018.  Compared to the preceding quarter, loans and investment yields decreased 16 basis points to 4.41% during the fourth quarter of 2019 from 4.57% one quarter earlier while deposit and borrowing costs declined 9 basis points to 1.17% from 1.26% over the same time period.  The decline in loan and investment yields 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.  Loan yields decreased to 4.88% from 5.04% during the fourth quarter of 2019, as many loans repriced lower as the prime rate declined, and market competition intensified. 

The cost of interest-bearing liabilities decreased during the quarter, reflecting lower rates associated with savings and demand deposits partially offset by higher rates on money market accounts.  Towards the end of the quarter, the bank received a large balance of public funds deposited into money market accounts. 

Additionally, the bank offered attractive rates on money market accounts to customers who met specific criteria designed to enhance the customers’ banking relationship with the bank.  These funds were used to replace higher costing certificates of deposit and borrowed funds.  Deposit costs decreased to $1.54 million for the fourth quarter of 2019 from $1.65 million the previous quarter.  Interest costs on borrowings declined $25,000 for the fourth quarter of 2019 to $475,000 from $500,000 the previous quarter.

“Our deposit costs declined less than the yield on earning assets during the fourth quarter, as we have sought to attract new deposits in anticipation of repaying higher costing brokered deposits of approximately $8.5 million and continue to fund anticipated balance sheet growth in the first quarter of 2020,” said Mark C. Oldenberg, Chief Financial Officer.

For the year ended December 31, 2019, net interest income increased 8.5% to $31.3 million compared to $28.8 million for the previous fiscal year.

The provision for loan losses totaled $150,000 during the fourth 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 fourth quarter of 2019 compared similarly to the prior quarter at $1.8 million and higher than the $1.7 million for the fourth quarter of 2018.  Service fees in the fourth quarter were $411,000 compared to $348,000 during the third quarter of 2019.  Gains on sale of mortgage loans decreased slightly to $452,000 for the fourth quarter from $463,000 in the third quarter of 2019 but remained strong as falling long-term U.S.Treasury rates have spurred mortgage refinance activity.  Commissions on investment and insurance sales increased to $301,000 from $276,000 the prior quarter.  At December 31, 2019, the bank had wealth assets under management totaling $248.5 million compared to $240.6 million at September 30, 2019 and $211.9 million at December 31, 2018.  The year over year growth of assets under management was 17.3%.

For the year ended December 31, 2019, total noninterest income increased 18.3% to $7.7 million from $6.5 million one year earlier.

Noninterest expense was $5.9 million for the fourth quarter of 2019, compared to $5.4 million for the third quarter.  For the fourth quarter of 2019, noninterest expense increased due to a slight increase in health insurance claims, software charges related to upgrades to product and operational features, an increase in advertising and promotion, losses on the sale of foreclosed property and professional fees largely related to audits of deposit and loan operation processes, to identify cost efficiencies.  Similar to the prior quarter, the fourth quarter 2019 results reflect the elimination of FDIC insurance premiums as the FDIC insurance fund reached its targeted level.

For the year ended December 31, 2019, total noninterest expense increased 4.7% to $22.7 million from $21.7 million one year earlier, adjusted for our Rhinelander branch write down, recorded in the June 2019 quarter. 

In the first quarter of 2020, we anticipate higher personnel expenses, office expenses, depreciation and advertising costs associated with the opening of our new branch in Milwaukee.

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.

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

PSB Holdings, Inc.       
Quarterly Financial Summary      
(dollars in thousands, except per share data)Quarter ended
    Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,
Earnings and dividends:   2019  2019  2019  2019  2018 
         
 Interest income  $9,988 $10,098 $9,839 $9,604 $9,365 
 Interest expense  $2,019 $2,154 $2,041 $2,032 $1,888 
 Net interest income  $7,969 $7,944 $7,798 $7,572 $7,477 
 Provision for loan losses  $150 $150 $150 $400 $60 
 Other noninterest income $1,839 $1,802 $1,903 $2,117 $1,718 
 Other noninterest expense $5,947 $5,437 $6,167 $5,745 $5,829 
 Net income  $2,813 $3,131 $2,572 $2,731 $2,529 
         
 Basic earnings per share (3) $0.63 $0.70 $0.57 $0.61 $0.56 
 Diluted earnings per share (3) $0.63 $0.70 $0.57 $0.61 $0.56 
 Dividends declared per share (3) $0.20 $- $0.20 $- $0.18 
 Tangible net book value per share (4) $20.72 $20.24 $19.41 $18.89 $17.98 
         
 Semi-annual dividend payout ratio  15.04%n/a 16.95%n/a 15.65%
 Average common shares outstanding  4,471,173  4,473,583  4,486,022  4,494,568  4,488,397 
         
Balance sheet - average balances:      
         
 Loans receivable, net of allowances for loss$700,469 $689,057 $666,008 $658,586 $646,063 
 Assets  $951,409 $928,282 $893,998 $899,263 $883,373 
 Deposits  $745,455 $721,788 $713,910 $713,257 $708,318 
 Stockholders' equity  $93,189 $89,139 $86,656 $82,516 $79,525 
         
Performance ratios:       
         
 Return on average assets (1)  1.17% 1.34% 1.15% 1.23% 1.14%
 Return on average stockholders' equity (1) 11.98% 13.94% 11.90% 13.42% 12.62%
 Average stockholders' equity less accumulated    
   other comprehensive income (loss) to     
   average assets   9.68% 9.52% 9.68% 9.27% 9.22%
 Net loan charge-offs to average loans (1) 0.01% 0.01% 0.00% 0.08% 0.07%
 Nonperforming loans to gross loans  0.68% 0.70% 0.53% 1.11% 0.91%
 Nonperforming assets to total assets  0.55% 0.57% 0.42% 0.84% 0.67%
 Allowance for loan losses to gross loans 0.97% 0.97% 0.97% 0.98% 0.94%
 Nonperforming assets to tangible equity     
   plus the allowance for loan losses (4) 5.45% 5.69% 4.13% 8.40% 7.20%
 Net interest rate margin (1)(2)  3.53% 3.60% 3.72% 3.63% 3.58%
 Net interest rate spread (1)(2)  3.24% 3.31% 3.42% 3.36% 3.32%
 Service fee revenue as a percent of      
   average demand deposits (1)  1.00% 0.90% 1.14% 1.12% 1.15%
 Noninterest income as a percent      
   of gross revenue   15.55% 15.14% 16.21% 18.06% 15.50%
 Efficiency ratio (2)   59.90% 55.14% 62.83% 58.59% 62.54%
 Noninterest expenses to average assets (1) 2.48% 2.32% 2.77% 2.59% 2.62%
 Tangible equity to actual assets  9.50% 9.53% 9.65% 9.50% 8.81%
         
Stock price information:       
         
 High  $28.25 $27.50 $24.75 $23.45 $27.50 
 Low  $26.00 $23.55 $22.00 $21.25 $21.10 
 Last trade value at quarter-end $27.50 $26.49 $24.00 $22.75 $22.50 
         
(1) Annualized       
(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.  
(3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals. 
(4) Tangible stockholders' equity excludes intangible assets.    



PSB Holdings, Inc.     
Consolidated Statements of Income     
      Quarter Ended 
(dollars in thousands,Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,
except per share data - unaudited) 2019 2019 2019 2019 2018 
         
Interest and dividend income:     
  Loans, including fees$8,691$8,823$8,629$8,334$8,125 
  Securities:     
  Taxable 768 769 730 713 714 
  Tax-exempt 387 378 389 396 424 
  Other interest and dividends 142 128 91 161 102 
         
  Total interest and dividend income 9,988 10,098 9,839 9,604 9,365 
         
Interest expense:     
  Deposits 1,544 1,654 1,634 1,553 1,435 
  FHLB advances 328 323 230 309 315 
  Other borrowings 26 58 57 51 18 
  Senior subordinated notes 29 28 28 28 28 
  Junior subordinated debentures 92 91 92 91 92 
         
  Total interest expense 2,019 2,154 2,041 2,032 1,888 
         
Net interest income 7,969 7,944 7,798 7,572 7,477 
Provision for loan losses 150 150 150 400 60 
         
Net interest income after provision for loan losses    7,819 7,794 7,648 7,172 7,417 
         
Noninterest income:     
  Service fees 411 348 403 381 419 
  Gain on sale of mortgage loans 452 463 432 175 227 
  Mortgage loan servicing, net 57 89 84 125 129 
  Investment and insurance sales commissions 301 276 310 333 430 
  Net gain on sale of securities 71 - 121 18 - 
  Increase in cash surrender value of life insurance    104 105 101 98 96 
  Other noninterest income 443 521 452 987 417 
         
  Total noninterest income 1,839 1,802 1,903 2,117 1,718 
         
Noninterest expense:     
  Salaries and employee benefits 3,523 3,372 3,322 3,428 3,566 
  Occupancy and facilities 506 510 591 601 526 
  Loss (gain) on foreclosed assets 69 4 3 4 (17)
  Data processing and other office operations 739 654 646 577 654 
  Advertising and promotion 182 107 120 100 163 
  FDIC insurance premiums - - 63 59 61 
  Other noninterest expenses 928 790 1,422 976 876 
         
  Total noninterest expense 5,947 5,437 6,167 5,745 5,829 
         
Income before provision for income taxes 3,711 4,159 3,384 3,544 3,306 
Provision for income taxes 898 1,028 812 813 777 
         
Net income$2,813$3,131$2,572$2,731$2,529 
Basic earnings per share$0.63$0.70$0.57$0.61$0.56 
Diluted earnings per share$0.63$0.70$0.57$0.61$0.56 
         



PSB Holdings, Inc.     
Consolidated Statements of Income     
    Three Months Ended Year Ended
(dollars in thousands,December December
except per share data - unaudited) 2019 2018   2019 2018 
         
Interest and dividend income:     
  Loans, including fees$8,691$8,125  $34,477$30,489 
  Securities:     
  Taxable 768 714   2,980 2,799 
  Tax-exempt 387 424   1,550 1,517 
  Other interest and dividends 142 102   522 384 
         
  Total interest and dividend income 9,988 9,365   39,529 35,189 
         
Interest expense:     
  Deposits 1,544 1,435   6,385 4,815 
  FHLB advances 328 315   1,190 1,085 
  Other borrowings 26 18   192 24 
  Senior subordinated notes 29 28   113 111 
  Junior subordinated debentures 92 92   366 326 
         
  Total interest expense 2,019 1,888   8,246 6,361 
         
Net interest income 7,969 7,477   31,283 28,828 
Provision for loan losses 150 60   850 130 
         
Net interest income after provision for loan losses 7,819 7,417   30,433 28,698 
         
Noninterest income:     
  Service fees 411 419   1,543 1,611 
  Gain on sale of mortgage loans - -   - - 
  Mortgage banking income 509 356   1,877 1,528 
  Investment and insurance sales commissions 301 430   1,220 1,307 
  Net gain on sale of securities 71 -   210 - 
  Increase in cash surrender value of life insurance 104 96   408 373 
  Other noninterest income 443 417   2,403 1,657 
         
  Total noninterest income 1,839 1,718   7,661 6,476 
         
Noninterest expense:     
  Salaries and employee benefits 3,523 3,566   13,645 13,194 
  Occupancy and facilities 506 526   2,208 2,115 
  Loss (gain) on foreclosed assets 69 (17)  80 (34)
  Data processing and other office operations 739 654   2,616 2,563 
  Advertising and promotion 182 163   509 420 
  FDIC insurance premiums - 61   122 247 
  Other noninterest expenses 928 876   4,116 3,208 
         
  Total noninterest expense 5,947 5,829   23,296 21,713 
         
Income before provision for income taxes 3,711 3,306   14,798 13,461 
Provision for income taxes 898 777   3,551 3,149 
         
Net income$2,813$2,529  $11,247$10,312 
Basic earnings per share$0.63$0.56  $2.51$2.29 
Diluted earnings per share$0.63$0.56  $2.51$2.29 
         



PSB Holdings, Inc.     
Consolidated Statements of Comprehensive Income    
         
    Three Months Ended Year Ended
    December 31, December 31,
(dollars in thousands - unaudited) 2019  2018   2019  2018 
         
Net income$2,813 $2,529  $11,247 $10,312 
         
Other comprehensive income, net of tax:     
         
 Unrealized gain (loss) on securities available    
  for sale 179  1,153   3,288  (766)
         
 Reclassification adjustment for security     
  gain included in net income (51) -   (152) - 
         
 Amortization of unrealized loss (gain) included in net    
  income on securities available for sale     
  transferred to securities held to maturity 3  (6)  (3) (39)
         
 Unrealized gain (loss) on interest rate swap 55  (157)  (211) (158)
         
 Reclassification adjustment of interest rate     
  swap settlements included in earnings 13  8   31  9 
         
         
Other comprehensive income (loss) 199  998   2,953  (954)
         
Comprehensive income$3,012 $3,527  $14,200 $9,358 
         


PSB Holdings, Inc.     
Consolidated Balance Sheets     
December 31, September 30, June 30, and March 31, 2019, unaudited, December 31, 2018 derived from audited financial statements     
 Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,
(dollars in thousands, except per share data) 2019  2019  2019  2018  2018 
Assets     
      
Cash and due from banks$23,005 $17,954 $11,825 $8,917 $18,923 
Interest-bearing deposits 839  1,059  2,306  349  501 
Federal funds sold 25,184  30,415  4,552  12,989  24,554 
      
Cash and cash equivalents 49,028  49,428  18,683  22,255  43,978 
Securities available for sale (at fair value) 174,448  127,587  123,586  127,368  113,821 
Securities held to maturity (fair values of $0, $41,311, $42,511, $53,338 and    
  $57,607 respectively) -  40,791  42,074  43,061  58,311 
Bank certificates of deposit (at cost) 4,983  1,984  1,984  2,976  2,976 
Loans held for sale 545  335  50  245  358 
Loans receivable, net 707,651  691,289  678,247  660,756  658,481 
Accrued interest receivable 2,776  2,803  2,844  2,826  2,777 
Foreclosed assets 460  572  172  113  113 
Premises and equipment, net 10,457  10,212  9,749  10,426  10,209 
Mortgage servicing rights, net 1,747  1,720  1,738  1,781  1,805 
Federal Home Loan Bank stock (at cost) 2,073  2,173  1,662  1,657  2,330 
Cash surrender value of bank-owned life insurance 16,773  16,668  16,564  16,463  16,365 
Other assets 3,952  4,101  3,961  3,836  4,474 
      
TOTAL ASSETS$974,893 $949,663 $901,314 $893,763 $915,998 
      
Liabilities     
      
Non-interest-bearing deposits$177,002 $159,897 $143,423 $138,124 $148,611 
Interest-bearing deposits 604,788  576,288  571,794  577,263  577,215 
      
  Total deposits 781,790  736,185  715,217  715,387  725,826 
      
Federal Home Loan Bank advances 73,496  85,496  59,915  51,165  81,071 
Other borrowings 6,131  17,411  19,179  22,870  8,379 
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 10,553  9,715  9,668  9,047  9,650 
      
  Total liabilities 882,202  859,039  814,211  808,701  835,158 
      
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 - 4,467,217, 4,471,216, 4,480,585, 4,495,110 and     
  4,487,895 shares, respectively 1,830  1,830  1,830  1,830  1,830 
Additional paid-in capital 7,597  7,543  7,490  7,497  7,430 
Retained earnings 95,037  93,117  89,986  88,314  85,583 
Accumulated other comprehensive income (loss), net of tax 1,302  1,103  543  (227) (1,651)
Treasury stock, at cost - 1,023,581, 1,019,582, 1,010,213, 995,688 and     
  1,002,903 shares, respectively (13,075) (12,969) (12,746) (12,352) (12,352)
      
  Total stockholders' equity 92,691  90,624  87,103  85,062  80,840 
      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$974,893 $949,663 $901,314 $893,763 $915,998 
      



PSB Holding, Inc.     
Loan Composition by PurposeDec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,
Quarter-ended (dollars in thousands)2019 2019 2019 2019 2018 
Total Loans     
  Residential real estate     
 One to four family121,548 119,620 117,093 116,393 117,970 
 HELOC loans21,668 22,855 22,158 23,631 24,746 
 Residential construction & development23,633 21,273 20,937 18,893 16,413 
 Residential vacant land3,908 4,299 4,680 5,052 5,370 
 Total Residential real estate170,757 168,047 164,868 163,969 164,499 
       
  Commercial/Agricultural real estate     
 Owner occupied     
   Commercial real estate156,275 158,423 149,507 147,435 145,480 
   SBA commercial real estate1,647 1,367 1,386 1,741 1,769 
   Agriculture real estate5,901 5,139 5,764 5,078 4,968 
   Construction and land development13,228 12,742 7,832 6,523 350 
   Commercial vacant land929 - - - - 
 Total Owner occupied177,051 177,671 164,489 160,777 152,567 
       
 Non-owner occupied     
   Commercial real estate192,160 179,136 168,809 161,647 147,246 
   SBA commercial real estate844 863 141 146 151 
   Agricultural real estate- - - - 315 
   Construction and land development17,061 13,301 22,159 22,014 35,288 
   Commercial vacant land14,280 14,532 14,702 15,404 13,800 
 Total Non-owner occupied224,345 207,832 205,811 199,211 196,800 
       
  Commercial/Agricultural non-real estate     
 Municipal non-real estate11,601 6,384 9,017 6,353 6,806 
 Commercial line54,538 62,991 65,252 58,117 68,300 
 Other commercial non-real estate65,690 64,418 65,500 69,073 65,829 
 SBA commercial non-real estate1,733 1,819 2,252 2,169 2,278 
 Agricultural non-real estate2,402 3,606 3,491 3,699 3,994 
 Total Commercial/Agricultural non-real estate135,964 139,218 145,512 139,411 147,207 
       
  Consumer non-real estate     
 Consumer installment3,454 3,319 3,093 2,793 2,755 
 Consumer line1,354 1,343 304 344 243 
 Other consumer189 197 195 190 218 
 Total Consumer non-real estate4,997 4,859 3,592 3,327 3,216 
Gross loans714,043 697,627 684,272 666,695 664,289 
       
 Net deferred loan costs326 295 300 272 213 
 Overdrafts221 168 339 296 211 
 Allowance for loan losses(6,939)(6,801)(6,664)(6,507)(6,232)
Total loans receivable707,651 691,289 678,247 660,756 658,481 
       



PSB Holdings, Inc.     
Deposit Composition     
  December 31, 
(dollars in thousands) 2019  2018
 $% $%
      
Non-interest bearing demand$177,00222.60% $148,61120.50%
Interest-bearing demand and savings 257,48632.90%  254,85735.10%
Money market deposits 183,37023.50%  145,30020.00%
Retail and local time deposits <= $250 104,45513.40%  99,58413.80%
      
Total core deposits 722,31392.40%   648,35289.40%
Wholesale interest-bearing demand -0.0%  -0.0%
Retail and local time deposits > $250 25,4313.30%  22,1313.00%
Broker & national time deposits <= $250 5,4570.70%  2,4830.30%
Broker & national time deposits > $250 28,5893.60%  52,8607.30%
Totals$781,790100.00%  $725,826100.0%
      



Nonperforming Assets as of:December
(dollars in thousands) 2019  2018 
    
Nonaccrual loans (excluding restructured loans)$3,697 $3,422 
Nonaccrual restructured loans 499  313 
Restructured loans not on nonaccrual 676  2,284 
Accruing loans past due 90 days or more -  - 
    
Total nonperforming loans 4,872  6,019 
Other Real Estate Owned 460  113 
    
Total nonperforming assets$5,332 $6,132 
    
Nonperforming loans as a % of gross loans receivable 0.68% 0.91%
Total nonperforming assets as a % of total assets 0.55% 0.67%
Allowance for loan losses as a % of nonperforming loans  142.43% 103.54%
    



PSB Holdings, Inc.           
Average Balances ($000) and Interest Rates         
(dollars in thousands)           
   Quarter ended December 31, 2019 Quarter ended September 30, 2019 Quarter ended December 31, 2018
   Average Yield / Average Yield / Average Yield /
   BalanceInterestRate BalanceInterestRate BalanceInterestRate
Assets            
Interest-earning assets:           
  Loans (1)(2)$707,336 $8,7094.88% $695,776 $8,8385.04% $652,342 $8,1374.95%
  Taxable securities 111,697  7682.73%  107,801  7692.83%  105,269  7142.69%
  Tax-exempt securities (2) 59,511  4903.27%  59,537  4783.19%  68,576  5373.11%
  FHLB stock 2,091  254.74%  1,970  204.03%  2,004  254.95%
  Other  29,443  1171.58%  22,493  1081.90%  13,748  772.22%
              
  Total (2)  910,078  10,1094.41%  887,577  10,2134.57%  841,939  9,4904.47%
              
Non-interest-earning assets:           
  Cash and due from banks 12,284     12,113     11,855   
  Premises and equipment,           
  net  10,333     10,136     10,311   
  Cash surrender value ins 16,713     16,606     15,751   
  Other assets 8,868     8,569     9,796   
  Allowance for loan           
  losses  (6,867)    (6,719)    (6,279)  
              
  Total $951,409    $928,282    $883,373   
              
Liabilities & stockholders' equity          
Interest-bearing liabilities:           
  Savings and demand           
  deposits (3)$239,613 $3070.51% $239,490 $3920.65% $235,839 $3700.62%
  Money market deposits (3)   180,262  4180.92%  164,801  4321.04%  143,618  2800.77%
  Time deposits 162,726  8192.00%  164,899  8302.00%  184,178  7851.69%
  FHLB borrowings 77,920  3281.67%  75,325  3231.70%  64,833  3151.93%
  Other borrowings 14,374  260.72%  22,079  581.04%  11,139  180.64%
 Senior sub. notes 2,500  294.60%  2,500  284.44%  2,500  284.44%
  Junior sub. debentures 7,732  924.72%  7,732  914.67%  7,732  924.72%
              
  Total  685,127  2,0191.17%  676,826  2,1541.26%  649,839  1,8881.15%
              
Non-interest-bearing liabilities:          
  Demand deposits 162,854     152,598     144,683   
  Other liabilities 10,239     9,719     9,326   
  Stockholders' equity 93,189     89,139     79,525   
              
  Total $951,409    $928,282    $883,373   
              
Net interest income $8,090   $8,059   $7,602 
Rate spread   3.24%   3.31%   3.32%
Net yield on interest-earning assets 3.53%   3.60%   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%.      
(3) Reflects changes in categorization from the third quarter earnings release.      



PSB Holdings, Inc.       
Average Balances ($000) and Interest Rates     
(dollars in thousands)       
   Year ended December 31, 2019 Year ended December 31, 2018
   Average Yield/ Average Yield/
   BalanceInterestRate BalanceInterestRate
Assets        
Interest-earning assets:       
  Loans (1)(2)$685,279 $34,5335.04% $633,406 $30,5384.82%
  Taxable securities 107,801  2,9802.76%  108,944  2,7992.57%
  Tax-exempt securities (2) 61,482  1,9623.19%  62,611  1,9203.07%
  FHLB stock 1,918  1045.42%  2,004  864.29%
  Other  21,253  4181.97%  16,272  2981.83%
          
  Total (2)  877,733  39,9974.56%  823,237  35,6414.33%
          
Non-interest-earning assets:       
  Cash and due from banks 11,644     10,966   
  Premises and equipment,       
  net  10,318     10,469   
  Cash surrender value ins 16,558     15,384   
  Other assets 8,738     9,393   
  Allowance for loan       
  losses  (6,605)    (6,286)  
          
  Total $918,386    $863,163   
          
Liabilities & stockholders' equity      
Interest-bearing liabilities:       
  Savings and demand       
  deposits $243,035 $1,5880.65% $240,119 $1,3200.55%
  Money market deposits 163,061  1,5410.95%  138,220  7700.56%
  Time deposits 168,624  3,2561.93%  180,950  2,7251.51%
  FHLB borrowings 67,207  1,1901.77%  61,553  1,0851.76%
  Other borrowings 19,628  1920.98%  5,617  240.43%
 Senior sub. notes 2,500  1134.52%  2,500  1114.44%
  Junior sub. debentures 7,732  3664.73%  7,732  3264.22%
          
  Total  671,787  8,2461.23%  636,691  6,3611.00%
          
Non-interest-bearing liabilities:      
  Demand deposits 148,746     140,561   
  Other liabilities 9,810     9,040   
  Stockholders' equity 88,043     76,870   
          
  Total $918,386    $863,162   
          
Net interest income $31,751   $29,280 
Rate spread   3.33%   3.33%
Net yield on interest-earning assets 3.62%   3.56%
          
(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%.  
       

 

Source: PSB Holdings, Inc.
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