PSB Holdings, Inc. Reports First Quarter 2023 Earnings of $0.67 Per Share; Tangible Book Value Increased $1.06 Per Share to $22.43 Per Share; Collateralized Available Liquidity Approaches $600 Million

WAUSAU, Wis., April 24, 2023 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported first quarter earnings ending March 31, 2023 of $0.67 per common share on net income of $2.9 million, compared to $0.80 per common share on net income of $3.5 million during the fourth quarter ending December 31, 2022, and $0.75 per common share on net income of $3.3 million during the first quarter ending March 31, 2022.

PSB’s first quarter 2023 operating results reflected the following changes from the fourth quarter of 2022: (1) lower net interest income due to rising deposit and FHLB advance costs; (2) higher mortgage loan servicing income offset by higher salary and benefit costs; (3) lower accumulated other comprehensive loss due to a decline in intermediate interest rates; (4) annualized loan growth of 4.7%; and (5) increased borrowings to fund seasonal business customer and municipal deposit outflows, promote increased on-balance sheet liquidity, and to fund net loan growth.

“Though the first quarter presented challenges with a rapid rise in interest rates, persistent forecasts of a pending recession and highly publicized bank failures, PSB continued its strong performance with a 12.5% return on shareholders’ equity during the first quarter. The combination of an efficient operation and a strong local economy has contributed to solid returns. Because of our balance sheet strength, we have immediate access to nearly $600 million in funds to support our depositors if needed,” stated Scott Cattanach, President and CEO.

March 31, 2023 Highlights:

• Net interest income decreased to $9.9 million for the quarter ended March 31, 2023, compared to $10.6 million for the quarter ended December 31, 2022, but increased from $9.6 million for the quarter ended March 31, 2022.

• Provision for loan losses increased to $100,000 for the quarter ended March 31, 2023 after recording no loan loss provision since the first quarter of 2021. The March 31, 2023 provision was related to loan growth of $11.4 million. The impact of the CECL adoption in the quarter was insignificant.

• Nonninterest income increased to $2.0 million for the quarter ended March 31, 2023 from $1.8 million the previous quarter. The increase largely reflected increased mortgage loan servicing income from recapture of the mortgage servicing right valuation allowance.

• Noninterest expenses increased $118,000, or 1.5% for the first quarter of 2023 to $7.8 million from $7.7 million the prior quarter. The increase was primarily related to higher salary and benefit costs.

• Asset quality continued to improve and remained strong. At March 31, 2023, non-performing assets declined to 0.45% of total assets from 1.03% one year earlier.

• Tangible book value per common share increased 4.7% to $22.43 at March 31, 2023 from $21.37 one quarter earlier. Tangible book value benefited from improved interest rate marks on available for sale securities which reduced the other comprehensive loss by $1.7 million. Return on tangible common equity was 12.51% for the quarter ended March 31, 2023 compared to 15.12% the prior quarter.

• During the first quarter, PSB repurchased 60,376 shares of its common stock.
  

Balance Sheet and Asset Quality Review

Total assets increased slightly to $1.36 billion at March 31, 2023, from $1.34 billion at December 31, 2022. Cash and cash equivalents totaled $39.6 million at March 31, 2023 compared to $29.4 million the previous quarter. Investment securities available for sale decreased $1.5 million from maturities and paydowns to $190.7 million at March 31, 2023 from $192.2 million one quarter earlier. Total collateralized liquidity available to meet cash demands was approximately $583 million at March 31, 2023 with an additional $294 million that could be raised in a short timeframe from the brokered CDs market.

Total loans receivable increased $11.4 million to $973.3 million at March 31, 2023, from $961.9 million at December 31, 2022. One-to-four family adjustable rate mortgage loans were added to the portfolio as well as commercial real estate and non-owner occupied construction and land loans. The majority of the Company’s lending activity for the quarter consists of lending on commercial real estate properties. As of March 31, 2023, 13.0% of the total loan portfolio and commitments consisted of multi-family loans followed by 8.5% on industrial production and warehousing real estate loans. Retail sales real estate loans totaled 3.7% of total loans and commitments, hotels totaled 3.3%, and office rental property loans totaled 0.9%. Though the lending pipeline for real estate projects slowed through the winter season, the economic environment in our markets remains healthy and moderate loan origination activity is expected to continue through 2023.

The allowance for loan losses declined slightly to 1.25% of gross loans at March 31, 2023 from 1.26% the prior quarter and included the recovery of reserves related to the adoption of CECL. On January 1, 2023, PSB adopted CECL for determining expected credit losses. At adoption, there was an $87,000 recovery adjustment (reduction) to the allowance for loan losses resulting in an increase to retained earnings as permitted by the adoption accounting rules. Annualized net recoveries to average loans were 0.02% for the first quarter ended March 31, 2023. Non-performing assets declined to 0.45% of total assets at March 31, 2023, compared to 0.48% at December 31, 2022, and 1.03% at March 31, 2022. During the first quarter of 2023, the remaining foreclosed asset was sold.

Total deposits declined 3.6% during the quarter. With the recent rise in interest rates, some depositors shifted existing low cost funds into other higher yield bank products, increasing the cost of funds. Local customers (deposits excluding brokered and national time deposit CDs) declined 3.1% during the March 2023 quarter. However, withdrawals were not a result of customers concerned about FDIC insurance limits in light of recent high profile bank failures. “We carefully examined large customers with deposit outflows and recognized only 6% of large customer outflows related to chasing higher rates at another bank, while approximately 25% of the decline related to seasonal municipal real estate tax activity, and 50% were related to normal business operations, owner distributions, or income tax payments. The manufacturing and health care sector had a strong year in 2022 with business owners making large distributions based on performance, which resulted in some deposit outflow as they shifted commercial deposits to individual deposits,” said Jessica Brown, Senior Vice President and Chief Financial Officer.

The composition of deposits changed during the March 2023 quarter as customers looked for higher deposit rates. At March 31, 2023, money market deposits and retail time deposits increased to 36.6% of deposits, compared to 32.3% at December 31, 2022. The lower-yield demand and savings deposits declined to 56.2% of deposits compared to 59.9% at December 31, 2022. Broker and national time deposits declined to 7.2% of total deposits at March 31, 2023 from 7.8% one quarter earlier. Uninsured and uncollateralized deposits represented 19.0% of total deposits at March 31, 2023 compared to 20.4% at December 31, 2022.

FHLB advances increased to $113.0 million at March 31, 2023, compared to $43.0 million at December 31, 2022, while other borrowings decreased to $5.0 million at March 31, 2023 compared to $13.0 million at December 31, 2022. New FHLB advances were added to support deposit outflows during the quarter as well as to fund loan growth and increase cash on hand for liquidity contingency plans. During the quarter, FHLB funding options carried lower interest rates than brokered CD alternatives.

Tangible stockholder equity as a percent of total tangible assets increased to 7.54% at March 31, 2023, from 7.42% at December 31, 2022.

Tangible net book value per common share was $22.43 at March 31, 2023, compared to $21.37 per common share one quarter earlier. Relative to the prior quarter, accumulated other comprehensive loss declined $1.7 million, which contributed to the book value per share increase. At March 31, 2023, the fair value on all securities (available for sale and held to maturity) was 10.4% less than amortized purchase cost, compared to 11.6% of the amortized purchase cost at December 31, 2022.

Operations Review

Net interest income decreased to $9.9 million (on a net margin of 3.21%) for the first quarter of 2023, compared to $10.6 million (on a net margin of 3.41%) for the fourth quarter of 2022, and $9.6 million (on a net margin of 3.24%) for the first quarter of 2022. Earning asset yields increased 24 basis points to 4.45% during the first quarter of 2023 from 4.21% during the fourth quarter of 2022, while deposit and borrowing costs increased 57 basis points to 1.68% compared to 1.11% during the fourth quarter of 2022.

The increase in earning asset yields was partially due to higher yields on investment securities during the quarter ended March 31, 2023. Taxable security yields increased to 2.70% for the quarter ended March 31, 2023, from 2.45% in the quarter ended December 31, 2022. Loan yields also increased during the first quarter to 4.90% from 4.67% for the fourth quarter of 2022 as loans repriced to higher indices from Federal Reserve and market rate increases and new loans were added to the portfolio.

As interest rates have increased, deposit customers have become more sensitive to deposit products with higher returns. As such, non-interest bearing deposit accounts declined $24.5 million during the quarter to $267.8 million at March 31, 2023 while money market deposits increased $22.3 million to $238.5 million. The overall cost of deposits was 1.06% for the quarter ended March 31, 2023 compared to 0.72% the prior quarter.

Total noninterest income increased for the first quarter of 2023 to $2.0 million from $1.8 million for the fourth quarter of 2022, due primarily to an increase in mortgage loan servicing partially offset by a reduction in investment sales commissions. At March 31, 2023, the Bank serviced $377.6 million in secondary market residential mortgage loans for others.

Noninterest expenses increased slightly to $7.8 million for the first quarter of 2023, compared to $7.7 million for the fourth quarter of 2022. The first quarter of 2023 included higher salaries and employee benefit expenses. Salary and employee benefit expenses were $5.0 million for the first quarter of 2023, compared to $4.7 million for the fourth quarter of 2022.

About PSB Holdings, Inc.

PSB Holdings, Inc. is the parent company of Peoples State Bank. Peoples is a community bank headquartered in Wausau, Wisconsin, serving northcentral and southeastern Wisconsin from ten full-service banking locations in Marathon, Oneida, Vilas, Milwaukee and Waukesha counties and a loan production office in 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

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about PSB’s business based, in part, on assumptions made by management and include, without limitation, statements with respect to the potential growth of PSB, its future profits, expected stock repurchase levels, future dividend rates, future interest rates, and the adequacy of its capital position. Forward-looking statements can be affected by known and unknown risks, uncertainties, and other factors, including, but not limited to, strength of the economy, the effects of government policies, including interest rate policies, risks associated with the execution of PSB’s vision and growth strategy, including with respect to current and future M&A activity, and risks associated with global economic instability relating to the COVID-19 pandemic and its effect on PSB and Peoples, and their customers, and other risks. The forward-looking statements in this press release speak only as of the date on which they are made and PSB does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

PSB Holdings, Inc.
Consolidated Balance Sheets
March 31, 2023, September 30, June 30, and March 31, 2022, unaudited, December 31, 2022 derived from audited financial statements
	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(dollars in thousands, except per share data)		2023			2022			2022			2022			2022
Assets
Cash and due from banks	$	13,336		$	28,561		$	16,659		$	19,149		$	18,322
Interest-bearing deposits		538			758			3,267			3,545			5,158
Federal funds sold		25,766			90			20,751			16,689			14,356
Cash and cash equivalents		39,640			29,409			40,677			39,383			37,836
Securities available for sale (at fair value)		190,738			192,197			188,425			190,478			289,704
Securities held to maturity (fair values of $82,610,  $80,926,  $77,467,  $82,567  and
$0 respectively)		87,889			87,816			87,993			88,216			-
Equity securities		2,070			2,032			1,870			1,781			1,720
Bank certificates of deposit (at cost)		-			-			-			245			245
Loans held for sale		-			-			-			270			-
Loans receivable, net		973,270			961,865			936,686			925,260			875,588
Accrued interest receivable		4,062			4,006			3,493			3,285			3,219
Foreclosed assets		-			160			160			160			1,103
Premises and equipment, net		13,406			13,164			13,129			12,981			12,906
Mortgage servicing rights, net		1,682			1,610			1,651			1,711			1,770
Federal Home Loan Bank stock (at cost)		4,620			2,516			2,516			2,646			2,646
Cash surrender value of bank-owned life insurance		25,078			24,922			24,765			24,608			24,455
Core deposit intangible		348			382			415			449			487
Goodwill		2,541			2,541			2,541			2,541			2,541
Other assets		14,444			15,069			15,248			13,550			11,725
TOTAL ASSETS	$	1,359,788		$	1,337,689		$	1,319,569		$	1,307,564		$	1,265,945
Liabilities
Non-interest-bearing deposits	$	267,836		$	292,338		$	298,335		$	283,592		$	272,611
Interest-bearing deposits		839,757			856,417			850,483			829,867			816,794
Total deposits		1,107,593			1,148,755			1,148,818			1,113,459			1,089,405
Federal Home Loan Bank advances		113,000			43,000			40,000			67,000			47,000
Other borrowings		5,033			12,985			10,449			4,601			4,304
Senior subordinated notes		4,769			5,549			2,500			2,500			2,500
Junior subordinated debentures		12,844			12,819			12,793			12,768			12,742
Accrued expenses and other liabilities		11,338			12,639			10,114			10,938			10,208
Total liabilities		1,254,577			1,235,747			1,224,674			1,211,266			1,166,159
Stockholders' equity
Preferred stock - no par value:
Authorized - 30,000 shares;  Issued - 7,200 shares
Outstanding - 7,200, 7,200, 0, 0, and 0 shares, respectively		7,200			7,200			-			-			-
Common stock - no par value with a stated value of $1.00 per share:
Authorized - 18,000,000 shares; Issued - 5,490,798 shares
Outstanding - 4,241,501,  4,297,279,  4,414,651,  4,423,037  and
4,434,840 shares, respectively		1,830			1,830			1,830			1,830			1,830
Additional paid-in capital		8,311			8,300			8,294			8,238			8,183
Retained earnings		128,968			126,003			123,559			120,043			117,957
Accumulated other comprehensive income (loss), net of tax		(22,515	)		(24,220	)		(24,200	)		(19,423	)		(14,097	)
Treasury stock, at cost - 1,249,297,  1,193,519,  1,076,147,  1,067,761  and
1,055,958  shares, respectively		(18,583	)		(17,171	)		(14,588	)		(14,390	)		(14,087	)
Total stockholders' equity		105,211			101,942			94,895			96,298			99,786
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,359,788		$	1,337,689		$	1,319,569		$	1,307,564		$	1,265,945

 

PSB Holdings, Inc.
Consolidated Statements of Income
	Quarter Ended
(dollars in thousands,	Mar. 31,			Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
except per share data - unaudited)		2023			2022		2022		2022		2022
Interest and dividend income:
Loans, including fees	$	11,773		$	11,251	$	10,225	$	9,295	$	9,054
Securities:
Taxable		1,331			1,218		978		859		762
Tax-exempt		537			539		540		537		533
Other interest and dividends		148			141		163		52		42
Total interest and dividend income		13,789			13,149		11,906		10,743		10,391
Interest expense:
Deposits		2,989			2,060		1,341		595		443
FHLB advances		547			167		209		234		169
Other borrowings		62			38		14		4		2
Senior subordinated notes		62			55		28		28		28
Junior subordinated debentures		234			224		202		179		166
Total interest expense		3,894			2,544		1,794		1,040		808
Net interest income		9,895			10,605		10,112		9,703		9,583
Provision for loan losses		100			-		-		-		-
Net interest income after provision for loan losses		9,795			10,605		10,112		9,703		9,583
Noninterest income:
Service fees		361			381		409		392		388
Gain on sale of mortgage loans		27			56		98		182		277
Mortgage loan servicing, net		298			179		130		117		176
Investment and insurance sales commissions		365			498		357		404		456
Increase in cash surrender value of life insurance		157			157		157		152		150
Other noninterest income		742			553		558		686		531
Total noninterest income		1,950			1,824		1,709		1,933		1,978
Noninterest expense:
Salaries and employee benefits		5,006			4,700		4,302		4,548		4,390
Occupancy and facilities		699			641		687		629		665
Loss (gain) on foreclosed assets		(50	)		2		4		-		(6	)
Data processing and other office operations		880			910		906		912		861
Advertising and promotion		162			180		185		173		152
Core deposit intangible amortization		34			34		34		38		47
Other noninterest expenses		1,073			1,219		1,069		1,151		1,083
Total noninterest expense		7,804			7,686		7,187		7,451		7,192
Income before provision for income taxes		3,941			4,743		4,634		4,185		4,369
Provision for income taxes		941			1,143		1,119		993		1,039
Net income	$	3,000		$	3,600	$	3,515	$	3,192	$	3,330
Preferred stock dividends declared	$	122		$	81	$	-	$	-	$	-
Net income available to common shareholders	$	2,878		$	3,519	$	3,515	$	3,192	$	3,330
Basic earnings per common share	$	0.67		$	0.80	$	0.80	$	0.72	$	0.75
Diluted earnings per common share	$	0.67		$	0.80	$	0.80	$	0.72	$	0.75

 

PSB Holdings, Inc.
Quarterly Financial Summary
(dollars in thousands, except per share data)		Quarter ended
		Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
Earnings and dividends:			2023			2022			2022			2022			2022
	Interest income	$	13,789		$	13,149		$	11,906		$	10,743		$	10,391
	Interest expense	$	3,894		$	2,544		$	1,794		$	1,040		$	808
	Net interest income	$	9,895		$	10,605		$	10,112		$	9,703		$	9,583
	Provision for loan losses	$	100		$	-		$	-		$	-		$	-
	Other noninterest income	$	1,950		$	1,824		$	1,709		$	1,933		$	1,978
	Other noninterest expense	$	7,804		$	7,686		$	7,187		$	7,451		$	7,192
	Net income available to common shareholders	$	2,878		$	3,519		$	3,515		$	3,192		$	3,330
	Basic earnings per common share (3)	$	0.67		$	0.80		$	0.80		$	0.72		$	0.75
	Diluted earnings per common share (3)	$	0.67		$	0.80		$	0.80		$	0.72		$	0.75
	Dividends declared per common share (3)	$	-		$	0.25		$	-		$	0.25		$	-
	Tangible net book value per common share (4)	$	22.43		$	21.37		$	20.83		$	21.10		$	21.82
	Semi-annual dividend payout ratio	n/a				15.27	%	n/a				16.96	%	n/a
	Average common shares outstanding		4,275,160			4,377,330			4,419,421			4,428,939			4,433,375
Balance sheet - average balances:
	Loans receivable, net of allowances for loss	$	964,030		$	945,551		$	931,344		$	904,710		$	878,979
	Assets	$	1,336,512		$	1,321,776		$	1,323,400		$	1,290,906		$	1,278,565
	Deposits	$	1,124,091		$	1,146,066		$	1,141,784		$	1,099,314		$	1,084,814
	Stockholders' equity	$	103,364		$	100,037		$	98,630		$	98,261		$	108,803
Performance ratios:
	Return on average assets (1)		0.87	%		1.06	%		1.05	%		0.99	%		1.06	%
	Return on average stockholders' equity (1)		11.29	%		13.96	%		14.14	%		13.03	%		12.41	%
	Return on average tangible common
	stockholders' equity (1) (4)		12.51	%		15.12	%		14.58	%		13.29	%		12.49	%
	Net loan charge-offs to average loans (1)		-0.02	%		0.03	%		0.01	%		-0.02	%		-0.05	%
	Nonperforming loans to gross loans		0.62	%		0.64	%		1.16	%		1.21	%		1.34	%
	Nonperforming assets to total assets		0.45	%		0.48	%		0.85	%		0.88	%		1.03	%
	Allowances for loan losses to gross loans		1.25	%		1.26	%		1.30	%		1.32	%		1.39	%
	Nonperforming assets to tangible equity
	plus the allowance for loan losses (4)		5.80	%		6.22	%		10.89	%		11.04	%		12.10	%
	Net interest rate margin (1)(2)		3.21	%		3.41	%		3.24	%		3.23	%		3.24	%
	Net interest rate spread (1)(2)		2.77	%		3.10	%		3.04	%		3.11	%		3.14	%
	Service fee revenue as a percent of
	average demand deposits (1)		0.52	%		0.50	%		0.56	%		0.57	%		0.58	%
	Noninterest income as a percent
	of gross revenue		12.39	%		12.18	%		12.55	%		15.25	%		15.99	%
	Efficiency ratio (2)		65.02	%		61.06	%		60.02	%		63.20	%		61.40	%
	Noninterest expenses to average assets (1)		2.37	%		2.31	%		2.15	%		2.32	%		2.28	%
	Average stockholders' equity less accumulated
	other comprehensive income (loss) to
	average assets		9.32	%		9.23	%		8.95	%		8.80	%		8.99	%
	Tangible equity to tangible assets (4)		7.54	%		7.42	%		6.98	%		7.15	%		7.66	%
Stock price information:
	High	$	25.75		$	22.74		$	23.94		$	26.35		$	26.45
	Low	$	20.00		$	21.50		$	22.50		$	22.82		$	25.80
	Last trade value at quarter-end	$	21.15		$	21.90		$	22.50		$	23.50		$	26.00
(1) Annualized
(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%
(3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals.
(4) Tangible stockholders' equity excludes intangible assets.

 

PSB Holdings, Inc.
Consolidated Statements of Comprehensive Income
			Quarter Ended
			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(dollars in thousands - unaudited)				2023			2022			2022			2022			2022
Net income			$	3,000		$	3,600		$	3,515		$	3,192		$	3,330
Other comprehensive income, net of tax:
	Unrealized gain (loss) on securities available
		for sale		1,601			(116	)		(4,915	)		(5,573	)		(14,847	)
	Amortization of unrealized loss included in net
		income on securities available for sale
		transferred to securities held to maturity		129			93			92			176			-
	Unrealized gain (loss) on interest rate swap			(1	)		11			32			43			85
	Reclassification adjustment of interest rate
		swap settlements included in earnings		(24	)		(8	)		13			28			37
Other comprehensive income (loss)				1,705			(20	)		(4,778	)		(5,326	)		(14,725	)
Comprehensive income (loss)			$	4,705		$	3,580		$	(1,263	)	$	(2,134	)	$	(11,395	)

 

PSB Holdings, Inc.
Nonperforming Assets as of:
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(dollars in thousands)		2023			2022			2022			2022			2022
Nonaccrual loans (excluding restructured loans)	$	5,773		$	5,879		$	6,048		$	6,036		$	6,537
Nonaccrual restructured loans		57			62			70			146			170
Restructured loans not on nonaccrual		265			270			4,904			5,137			5,172
Accruing loans past due 90 days or more		-			-			-			-			-
Total nonperforming loans		6,095			6,211			11,022			11,319			11,879
Other real estate owned		-			160			160			160			1,103
Total nonperforming assets	$	6,095		$	6,371		$	11,182		$	11,479		$	12,982
Nonperforming loans as a % of gross loans receivable		0.62	%		0.64	%		1.16	%		1.21	%		1.34	%
Total nonperforming assets as a % of total assets		0.45	%		0.48	%		0.85	%		0.88	%		1.03	%
Allowance for loan losses as a % of nonperforming loans		190.21	%		197.92	%		112.28	%		109.48	%		103.89	%

 

PSB Holdings, Inc.
Nonperforming Assets >= $500,000 net book value before specific reserves
At March 31, 2023
(dollars in thousands)
		Gross			Specific
Collateral Description	Asset Type	Principal			Reserves
Real estate - Buffet Style Restaurant	Nonaccrual	$	2,873		$	1,123
Real estate - Independent Auto Repair	Nonaccrual		762			71
Total listed nonperforming assets		$	3,635		$	1,194
Total bank wide nonperforming assets		$	6,095		$	1,472
Listed assets as a % of total nonperforming assets			60	%		81	%

 

PSB Holding, Inc.
Loan Composition by Purpose
Quarter-ended (dollars in thousands)	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Residential real estate:
One to four family	$	187,325		$	182,688		$	172,913		$	169,437		$	168,083
HELOC loans		18,141			17,625			18,423			17,776			16,709
Residential construction & development		22,014			20,698			22,313			22,462			21,590
Residential vacant land		1,223			1,414			3,069			1,599			1,697
Total Residential real estate		228,703			222,425			216,718			211,274			208,079
Commercial/Agricultural real estate:
Owner occupied
Commercial real estate		237,217			220,374			211,008			205,976			208,271
SBA commercial real estate		2,112			2,514			2,616			2,458			2,530
Agriculture real estate		3,681			3,835			3,902			3,583			3,651
Construction and land development		2,825			22,330			32,158			31,465			26,111
Commercial vacant land		6,712			7,291			5,214			5,351			5,194
Total Owner occupied		252,547			256,344			254,898			248,833			245,757
Non-owner occupied
Commercial real estate		226,280			228,761			225,823			227,400			212,407
One to four family residential rental		65,673			64,764			66,224			61,749			56,305
Construction and land development		41,272			27,253			25,543			25,086			23,080
Commercial vacant land		3,928			3,862			4,010			4,287			4,191
Total Non-owner occupied		337,153			324,640			321,600			318,522			295,983
Commercial/Agricultural non-real estate:
Municipal non-real estate		6,430			9,915			7,133			6,352			6,403
Commercial line		57,727			63,173			56,154			65,728			54,626
Other commercial non-real estate		92,419			87,535			82,430			76,065			64,260
SBA commercial non-real estate		3,997			3,533			3,378			3,926			6,068
Agricultural non-real estate		1,250			1,290			1,491			1,409			1,340
Total Commercial/Agr. non-real estate		161,823			165,446			150,586			153,480			132,697
Consumer non-real estate:
Consumer installment		3,357			4,072			4,005			4,305			4,201
Consumer line		529			382			494			493			486
Other consumer		108			115			116			123			118
Total Consumer non-real estate		3,994			4,569			4,615			4,921			4,805
Gross loans		984,220			973,424			948,417			937,030			887,321
Net deferred loan costs (fees)		542			573			537			503			423
Overdrafts		101			160			107			119			185
Allowance for loan losses		(11,593	)		(12,293	)		(12,375	)		(12,392	)		(12,341	)
Total loans receivable	$	973,270		$	961,864		$	936,686		$	925,260		$	875,588

 

PSB Holding, Inc.
Commercial Real Estate Loans by Purpose
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(dollars in thousands)	2023			2022			2022			2022			2022
	$	%		$	%		$	%		$	%		$	%
	Total Exposure	% of Portfolio (1)		Total Exposure	% of Portfolio (1)		Total Exposure	% of Portfolio (1)		Total Exposure	% of Portfolio (1)		Total Exposure	% of Portfolio (1)
Multi Family	$121,559	13.0%		$120,232	13.1%		$141,414	15.6%		$143,074	15.7%		$122,169	14.6%
Industrial and Warehousing	$78,934	8.5%		$76,536	8.3%		$83,033	9.1%		$79,073	8.7%		$74,228	8.9%
Retail	$34,427	3.7%		$32,587	3.5%		$39,279	4.3%		$39,013	4.3%		$36,069	4.3%
Hotels	$31,069	3.3%		$32,940	3.6%		$26,958	3.0%		$26,948	3.0%		$29,281	3.5%
Office	$8,544	0.9%		$8,652	0.9%		$8,758	1.0%		$8,862	1.0%		$8,964	1.1%
(1) Percentage of portfolio and commitments.

 

PSB Holdings, Inc.
Deposit Composition - Insured and Collateralized Deposits
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)		2023			2022			2022			2022			2022
	$		%	$		%	$		%	$		%	$		%
Non-interest bearing demand	$	205,350	18.5%	$	203,115	17.7%	$	216,117	18.8%	$	207,852	18.7%	$	209,115	19.2%
Interest-bearing demand and savings		329,364	29.7%		345,854	30.1%		348,989	30.4%		331,034	29.7%		347,652	31.9%
Money market deposits		128,575	11.6%		131,400	11.4%		130,125	11.3%		132,374	11.9%		133,202	12.2%
Retail and local time deposits <= $250		136,090	12.3%		130,205	11.3%		132,095	11.5%		136,230	12.2%		138,821	12.7%
Total core deposits		799,379	72.2%		810,574	70.6%		827,326	72.0%		807,490	72.5%		828,790	76.1%
Retail and local time deposits > $250		17,000	1.5%		14,500	1.3%		12,250	1.1%		13,000	1.2%		13,250	1.2%
Broker & national time deposits <= $250		5,953	0.5%		6,451	0.6%		6,700	0.6%		7,443	0.7%		7,443	0.7%
Broker & national time deposits > $250		74,485	6.7%		82,439	7.2%		82,439	7.2%		56,255	5.1%		36,965	3.4%
Totals	$	896,817	81.0%	$	913,964	79.6%	$	928,715	80.8%	$	884,188	79.4%	$	886,448	81.4%
PSB Holdings, Inc.
Deposit Composition - Uninsured and Uncollateralized Deposits
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)		2023			2022			2022			2022			2022
	$		%	$		%	$		%	$		%	$		%
Non-interest bearing demand	$	62,487	5.6%	$	89,223	7.8%	$	82,219	7.2%	$	75,740	6.8%	$	63,496	5.8%
Interest-bearing demand and savings		24,854	2.2%		49,917	4.3%		28,842	2.5%		45,116	4.1%		35,177	3.2%
Money market deposits		109,894	9.9%		84,673	7.4%		98,493	8.6%		94,533	8.5%		88,780	8.1%
Retail and local time deposits <= $250		0	0.0%		0	0.0%		-	0.0%		-	0.0%		-	0.0%
Total core deposits		197,235	17.8%		223,813	19.5%		209,554	18.2%		215,389	19.3%		187,453	17.2%
Retail and local time deposits > $250		13,541	1.2%		10,978	1.0%		10,549	0.9%		13,882	1.2%		15,504	1.4%
Broker & national time deposits <= $250		0	0.0%		0	0.0%		-	0.0%		-	0.0%		-	0.0%
Broker & national time deposits > $250		0	0.0%		0	0.0%		-	0.0%		-	0.0%		-	0.0%
Totals	$	210,776	19.0%	$	234,791	20.4%	$	220,103	19.2%	$	229,271	20.6%	$	202,957	18.6%
PSB Holdings, Inc.
Deposit Composition - Total Deposits
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)		2023			2022			2022			2022			2022
	$		%	$		%	$		%	$		%	$		%
Non-interest bearing demand	$	267,836	24.2%	$	292,338	25.4%	$	298,335	26.0%	$	283,592	25.5%	$	272,611	25.0%
Interest-bearing demand and savings		354,218	32.0%		395,771	34.5%		377,831	32.9%		376,150	33.8%		382,829	35.1%
Money market deposits		238,470	21.5%		216,073	18.8%		228,619	19.9%		226,907	20.4%		221,982	20.4%
Retail and local time deposits <= $250		136,090	12.3%		130,205	11.3%		132,095	11.5%		136,230	12.2%		138,821	12.7%
Total core deposits		996,614	90.0%		1,034,387	90.0%		1,036,880	90.3%		1,022,879	91.9%		1,016,243	93.3%
Retail and local time deposits > $250		30,541	2.8%		25,478	2.2%		22,799	2.0%		26,882	2.4%		28,754	2.6%
Broker & national time deposits <= $250		5,953	0.5%		6,451	0.6%		6,700	0.6%		7,443	0.7%		7,443	0.7%
Broker & national time deposits > $250		74,485	6.7%		82,439	7.2%		82,439	7.2%		56,255	5.1%		36,965	3.4%
Totals	$	1,107,593	100.0%	$	1,148,755	100.0%	$	1,148,818	100.0%	$	1,113,459	100.0%	$	1,089,405	100.0%

 

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
		Quarter ended March 31, 2023							Quarter ended December 31, 2022							Quarter ended March 31, 2022
		Average					Yield /		Average					Yield /		Average					Yield /
		Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)		$	976,395		$	11,788	4.90%		$	957,926		$	11,266	4.67%		$	891,257		$	9,065	4.12%
Taxable securities			199,705			1,331	2.70%			197,070			1,218	2.45%			216,965			762	1.42%
Tax-exempt securities (2)			81,932			680	3.37%			82,074			682	3.30%			87,719			675	3.12%
FHLB stock			3,059			50	6.63%			2,516			32	5.05%			2,646			34	5.21%
Other			9,024			98	4.40%			14,131			109	3.06%			20,448			8	0.16%
Total (2)			1,270,115			13,947	4.45%			1,253,717			13,307	4.21%			1,219,035			10,544	3.51%
Non-interest-earning assets:
Cash and due from banks			17,255							18,941							17,996
Premises and equipment,
net			13,332							13,123							12,732
Cash surrender value ins			24,982							24,822							24,361
Other assets			23,193							23,548							16,719
Allowance for loan
losses			(12,366	)						(12,375	)						(12,278	)
Total		$	1,336,511						$	1,321,776						$	1,278,565
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand
deposits		$	373,557		$	1,053	1.14%		$	376,075		$	690	0.73%		$	396,261		$	69	0.07%
Money market deposits			225,624			830	1.49%			224,701			601	1.06%			218,367			89	0.17%
Time deposits			245,562			1,106	1.83%			241,290			769	1.26%			198,431			285	0.58%
FHLB borrowings			68,833			547	3.22%			35,522			167	1.87%			51,200			169	1.34%
Other borrowings			10,025			62	2.51%			11,307			38	1.33%			6,452			2	0.13%
	Senior sub. notes		5,159			62	4.87%			4,522			55	4.83%			2,500			28	4.54%
Junior sub. debentures			12,832			234	7.40%			12,806			224	6.94%			12,730			166	5.29%
Total			941,592			3,894	1.68%			906,223			2,544	1.11%			885,941			808	0.37%
Non-interest-bearing liabilities:
Demand deposits			279,348							304,000							271,755
Other liabilities			12,208							11,516							12,066
Stockholders' equity			103,363							100,037							108,803
Total		$	1,336,511						$	1,321,776						$	1,278,565
Net interest income					$	10,053						$	10,763						$	9,736
Rate spread							2.77%							3.10%							3.14%
Net yield on interest-earning assets							3.21%							3.41%							3.24%
(1) Nonaccrual loans are included in the daily average loan balances outstanding.
(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.