PSB Holdings, Inc. Reports Record 2021 Earnings; 4th Quarter Earnings Total $3.1 Million, or $0.71 Per Share


WAUSAU, Wis., Jan. 28, 2022 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin, reported record earnings for the year ended December 31, 2021 of $12.8 million, or $2.88 per share, compared to $10.7 million, or $2.40 per share, for the year ended December 31, 2020. Fourth quarter earnings ending December 31, 2021 were $0.71 per share on net income of $3.1 million, compared to earnings of $0.82 per share on net income of $3.6 million, during the September 30, 2021 quarter, and $0.73 per share on net income of $3.3 million, during the fourth quarter a year ago.

The Company’s fourth quarter 2021 operating results reflected the following changes from the third quarter of 2021: (1) lower net interest income due to lower yields on loans and investment securities; (2) lower SBA Paycheck Protection Program (“PPP”) origination fee income accretion; and (3) an increase in compensation expense largely due to incentive benefit plans funded later in the year.

“We enjoyed strong organic and acquisition growth during 2021 driving both total assets and earnings to record highs.  Earnings growth was driven by the addition of new earning assets, the recognition of PPP origination fee income and much lower provision for loan losses, which offset a decline in mortgage banking income and higher operating expenses related to the expanded asset base from the acquisition of Waukesha Bankshares, Inc. in April 2021.  Our pipeline for new loan originations looks solid heading into the first quarter of 2022 and we are well positioned to benefit from expected increases in short-term interest rates as net interest margin moves higher,” stated Scott Cattanach, President and CEO.

December 31, 2021 Highlights:

  • Net interest income was $9.2 million for the quarter ended December 31, 2021, compared to $9.6 million for the quarter ended September 30, 2021, and $8.4 million for the quarter ended December 31, 2020. PPP related fee income realized during the respective quarters was $287,000, $559,000 and $464,000.
  • Loan loss provisions remained at zero for the quarter ended December 31, 2021, relative to the prior quarter and $675,000 for the quarter ended December 31, 2020.
  • Noninterest expense increased $411,000 for the quarter ended December 31, 2021, to $7.4 million from $6.9 million the prior quarter. The increase primarily related to increased severance and incentive compensation plan expense from 2021 activities.
  • Loan growth continued with new originations outpacing the payoff of PPP related loans. Loans receivable increased to $876 million at December 31, 2021, from $874 million one quarter earlier and $821 million at December 31, 2020. Meanwhile, PPP loans declined $9.5 million from $24.3 million at September 30, 2021, to $14.8 million at December 31, 2021.

As shown in the table below during the December 31, 2021 quarter, “impaired loans” increased $4.5 million and “substandard risk” loans decreased $6.0 million, while “watch risk” loans increased $3.9 million. The primary decrease in “substandard risk” loans and increase in “impaired loans” relates to an equipment dealer loan relationship that was downgraded during the quarter but continues to accrue interest as a performing loan.

Commercial, Commercial Real Estate, Construction & Development, Agricultural and Government Loans ($000s)    
        
Risk Rating  12/2019 12/2020 03/2021
 06/2021 09/2021 12/2021
        
Rating 1"High Quality"$-$-$-$-$77$-
Rating 2"Minimal Risk" 57,904 61,223 62,626 60,155 71,304 70,886
Rating 3"Average Risk" 349,002 390,191 348,102 345,929 347,735 383,951
Rating 4"Acceptable Risk" 128,932 175,400 209,407 209,728 226,501 222,641
Rating 5"Watch Risk" 15,933 36,379 30,891 39,577 33,284 37,194
Rating 6"Substandard Risk" 2,568 7,617 18,134 6,377 10,148 4,182
Rating 7"Impaired Loans" 5,518 13,153 16,162 15,522 16,790 21,322
        
Totals $559,857$683,963$685,322$677,288$705,839$740,176
        
Includes undisbursed Construction & Development lines of credit. PPP loan balances are assigned a risk-weighting of "3".
        

Balance Sheet and Asset Quality Review

Total assets remained at $1.30 billion at December 31, 2021.   Cash and cash equivalents have continued to trend down, post acquisition of Waukesha Bankshares, Inc. in April, declining $12.0 million to $53.5 million from $65.5 million one quarter earlier. Meanwhile, securities available for sale increased $8.6 million to $310.4 million at December 31, 2021, from $301.9 million one quarter earlier. The increased balance of investment securities from cash and equivalents helped improve returns from the investment portfolio.

Total loans receivable increased by $1.8 million to $876.3 million at December 31, 2021, from $874.5 million at September 30, 2021. PPP loans declined from $24.3 million at September 30, 2021, to $14.8 million at December 31, 2021. At December 31, 2021, unrealized net PPP origination fee income totaled $360,000.   

The allowance for loan losses increased to 1.38% of gross loans at December 31, 2021, from 1.35% the prior quarter and 1.30% of gross loans one year earlier. Annualized net charge-offs to average loans reflected a net recovery at 0.10% for the quarter ended December 31, 2021. Non-performing assets were 1.06% of total assets at December 31, 2021, compared to 1.16% at September 30, 2021, and 0.90% at December 30, 2020. At December 31, 2021, non-performing assets consisted of $6.4 million in non-accrual loans, $1.0 million in non-accrual restructured loans, $5.2 million in restructured loans not on non-accrual and $1.1 million in foreclosed assets.

Foreclosed assets decreased to $1.1 million at December 31, 2021, from $2.4 million at September 30, 2021, as several properties were sold at a gain. Foreclosed assets were $1.6 million at the beginning of the fiscal year.

Total deposits increased $22.2 million to $1.11 billion at December 31, 2021, compared to $1.08 billion at September 30, 2021. Deposits continued to be withdrawn from retail time deposits while demand deposit accounts increased. At December 31, 2021, interest-bearing demand and savings deposits accounted for 37.4% of total deposits, followed by noninterest-bearing demand deposits at 25.7%, money market deposits at 19.8%, and retail and local time deposits at 15.3%. Broker and national time deposits accounted for 1.7% of total deposits at December 31, 2021, versus 1.5% at December 31, 2020.

FHLB advances decreased to $47.0 million at December 31, 2021, from $62.0 million at September 30, 2021, and $62.0 million at December 31, 2020, while other borrowings decreased $10.5 million to $6.7 million compared to $17.1 million the prior period and $12.2 million at December 31, 2020.

Operations Review

Net interest income totaled $9.2 million (on a net margin of 3.01%) for the fourth quarter of 2021, compared to $9.6 million (on a net margin of 3.15%) for the third quarter of 2021, and $8.4 million (on a net margin of 3.22%) for the fourth quarter of 2020. Earning asset yields decreased 13 basis points from 3.41% to 3.28% during the fourth quarter of 2021, while deposit and borrowing costs increased 2 basis points on a smaller average balance to 0.39% from 0.37% over the same period. The decrease in earning asset yields was partially due to lower net accretion of loan fees of $287,000 related to PPP loans that were repaid compared to net accretion of $559,000 during the September 30, 2021 quarter. Additionally, a large balance of lower yielding investment securities contributed to the decrease in earning asset yields. Taxable security yields decreased from 1.18% in the quarter ended September 30, 2021, to 1.17% for the quarter ended December 31, 2021. Loan yields decreased to 4.02% during the quarter from 4.23% during the third quarter of 2021. Loan yields excluding the impacts of PPP loan origination fee income, were 3.89% and 3.98% during the December 31, 2021 and September 30, 2021 quarters respectively. Net interest margin excluding the impacts of PPP loan origination fee income, was 2.91% and 2.97% in the December 31, 2021 and September 30, 2021 quarters, respectively.   Recognition of PPP loan fee income is expected to decline for first quarter 2022 as fewer PPP loans remain outstanding.

The cost of interest-bearing liabilities increased during the quarter, largely reflecting slightly higher rates associated with time deposits. The cost of deposits was 0.17% for the quarter ended December 31, 2021, compared to 0.15% the prior quarter. Interest costs on borrowings declined $32,000 for the fourth quarter of 2021 as $15.0 million of FHLB advances were repaid.

Total noninterest income increased slightly for the fourth quarter of 2021 to $2.2 million from $2.1 million for the third quarter of 2021, due in part to higher investment and insurance sales commissions which increased from $426,000 in the third quarter to $500,000 in the fourth quarter. At December 31, 2021, the bank had wealth assets under management totaling $321.2 million compared to $301.6 million at September 30, 2021. Gains on sale of mortgage loans decreased slightly to $451,000 for the fourth quarter from $494,000 in the third quarter of 2021, due primarily to lower spreads on sale of loans to the secondary market.

Deposit and service fee income in the fourth quarter remained near the prior quarter levels at $382,000 for the three months ended December 31, 2021, compared to $379,000 for the prior three-month period. For the fourth quarter ended December 31, 2021, other noninterest income was $646,000 compared to $563,000 the prior quarter.

Noninterest expense increased to $7.4 million for the fourth quarter of 2021, compared to $6.9 million for the third quarter of 2021. The fourth quarter of 2021 included increased salaries and employee benefit expenses related to severance expense and higher performance-based incentive expenses. Salary and employee benefit expenses were $4.7 million for the fourth quarter of 2021 compared to $4.1 million in the third quarter of 2021. These expenses were partially offset by gains of $347,000 realized on the sale of two foreclosed real estate properties in the fourth quarter.

Data processing and other office operations costs increased slightly to $855,000 for the quarter ended December 31, 2021, from $828,000 the previous quarter. Meanwhile, advertising and promotion expenses decreased slightly to $155,000 for the most recent quarter compared to $199,000 last quarter. Other noninterest expenses increased to $1.3 million for the fourth quarter ended December 31, 2021, from $1.2 million the previous quarter.

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.       
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:  20212021202120212020
         
 Interest income  $10,085 $10,449 $11,070 $10,482 $9,442 
 Interest expense  $866 $826 $907 $886 $1,011 
 Net interest income  $9,219 $9,623 $10,163 $9,596 $8,431 
 Provision for loan losses  $- $- $- $1,000 $675 
 Other noninterest income $2,244 $2,126 $2,299 $2,749 $2,991 
 Other noninterest expense $7,357 $6,946 $9,607 $6,200 $6,461 
 Net income  $3,146 $3,638 $2,137 $3,896 $3,252 
         
 Basic earnings per share (3) $0.71 $0.82 $0.48 $0.88 $0.73 
 Diluted earnings per share (3) $0.71 $0.82 $0.48 $0.87 $0.73 
 Dividends declared per share (3) $0.23 $- $0.23 $- $0.21 
 Tangible net book value per share (4)$24.36 $24.07 $23.53 $23.69 $23.43 
         
 Semi-annual dividend payout ratio  15.05% n/a 17.04% n/a 15.88% 
 Average common shares outstanding 4,445,465  4,450,755  4,454,922  4,454,334  4,452,287 
         
Balance sheet - average balances:      
         
 Loans receivable, net of allowances for loss  $870,151 $862,555 $891,886 $827,595 $807,182 
 Assets  $1,295,780 $1,292,369 $1,251,738 $1,132,905 $1,100,064 
 Deposits  $1,092,872 $1,064,553 $1,023,229 $925,689 $896,427 
 Stockholders' equity  $112,089 $110,388 $105,932 $105,868 $102,790 
         
Performance ratios:       
         
 Return on average assets (1)  0.96%  1.12%  0.68%  1.39%  1.18% 
 Return on average stockholders' equity (1) 11.14%  13.08%  8.09%  14.92%  12.59% 
 Average stockholders' equity less accumulated    
   other comprehensive income (loss) to     
   average assets   8.57%  8.39%  8.27%  9.10%  9.00% 
 Net loan charge-offs to average loans (1) -0.10%  -0.08%  0.00%  0.01%  0.16% 
 Nonperforming loans to gross loans  1.42%  1.43%  1.31%  1.39%  1.03% 
 Nonperforming assets to total assets  1.06%  1.16%  1.07%  1.13%  0.90% 
 Allowance for loan losses to gross loans 1.38%  1.35%  1.35%  1.40%  1.30% 
 Nonperforming assets to tangible equity     
   plus the allowance for loan losses (4) 11.58%  12.87%  11.71%  11.06%  8.96% 
 Net interest rate margin (1)(2)  3.01%  3.15%  3.48%  3.62%  3.22% 
 Net interest rate spread (1)(2)  2.89%  3.04%  3.37%  3.49%  3.07% 
 Service fee revenue as a percent of      
   average demand deposits (1)  0.52%  0.53%  0.51%  0.57%  0.59% 
 Noninterest income as a percent      
   of gross revenue   18.20%  16.91%  17.20%  20.78%  24.06% 
 Efficiency ratio (2)   63.37%  58.40%  76.20%  49.64%  55.87% 
 Noninterest expenses to average assets (1) 2.25%  2.13%  3.08%  2.22%  2.34% 
 Tangible equity to tangible assets  8.35%  8.27%  8.38%  9.32%  9.22% 
         
Stock price information:       
         
 High  $27.00 $26.50 $26.50 $25.94 $23.00 
 Low  $24.60 $24.52 $25.00 $20.45 $17.20 
 Last trade value at quarter-end $26.05 $24.95 $26.25 $25.25 $20.57 
         
(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)20212021202120212020
         
Interest and dividend income:     
Loans, including fees$8,918 $9,323$9,972$9,442$8,371 
Securities:     
Taxable 631  581 553 507 542 
Tax-exempt 505  500 505 502 489 
Other interest and dividends 31  45 40 31 40 
         
Total interest and dividend income 10,085  10,449 11,070 10,482 9,442 
         
Interest expense:     
Deposits 476  404 485 547 657 
FHLB advances 192  220 221 215 228 
Other borrowings 4  9 8 7 6 
Senior subordinated notes 29  28 28 28 29 
Junior subordinated debentures 165  165 165 89 91 
         
Total interest expense 866  826 907 886 1,011 
         
Net interest income 9,219  9,623 10,163 9,596 8,431 
Provision for loan losses -  - - 1,000 675 
         
Net interest income after provision for loan losses    9,219  9,623 10,163 8,596 7,756 
         
Noninterest income:     
Service fees 382  379 347 332 352 
Gain on sale of mortgage loans 451  494 663 1,152 1,401 
Mortgage loan servicing, net 114  111 9 79 104 
Investment and insurance sales commissions 500  426 465 595 391 
Net gain on sale of securities -  - 113 21 149 
Increase in cash surrender value of life insurance    151  153 148 108 106 
Other noninterest income 646  563 554 462 488 
         
Total noninterest income 2,244  2,126 2,299 2,749 2,991 
         
Noninterest expense:     
Salaries and employee benefits 4,669  4,099 3,915 3,460 4,084 
Occupancy and facilities 596  614 647 569 511 
Loss (gain) on foreclosed assets (347) 28 23 130 (218)
Data processing and other office operations 855  828 1,499 694 568 
Advertising and promotion 155  199 322 79 172 
FDIC insurance premiums 116  121 58 83 82 
Other noninterest expenses 1,313  1,057 3,143 1,185 1,262 
         
Total noninterest expense 7,357  6,946 9,607 6,200 6,461 
         
Income before provision for income taxes 4,106  4,803 2,855 5,145 4,286 
Provision for income taxes 960  1,165 718 1,249 1,034 
         
Net income$3,146 $3,638$2,137$3,896$3,252 
Basic earnings per share$0.71 $0.82$0.48$0.88$0.73 
Diluted earnings per share$0.71 $0.82$0.48$0.87$0.73 


PSB Holdings, Inc.     
Consolidated Statements of Income     
    Three Months Ended Year Ended
(dollars in thousands,December December
except per share data - unaudited) 2021  2020   2021  2020 
         
Interest and dividend income:     
Loans, including fees$8,918 $8,371  $37,655 $33,059 
Securities:     
Taxable 631  542   2,272  2,461 
Tax-exempt 505  489   2,012  1,840 
Other interest and dividends 31  40   147  254 
         
Total interest and dividend income 10,085  9,442   42,086  37,614 
         
Interest expense:     
Deposits 476  657   1,912  4,052 
FHLB advances 192  228   848  1,175 
Other borrowings 4  6   28  31 
Senior subordinated notes 29  29   113  113 
Junior subordinated debentures 165  91   584  364 
         
Total interest expense 866  1,011   3,485  5,735 
         
Net interest income 9,219  8,431   38,601  31,879 
Provision for loan losses -  675   1,000  5,575 
         
Net interest income after provision for loan losses    9,219  7,756   37,601  26,304 
         
Noninterest income:     
Service fees 382  352   1,440  1,365 
Gain on sale of mortgage loans 451  1,401   2,760  5,887 
Mortgage loan servicing, net 114  104   313  (163)
Investment and insurance sales commissions 500  391   1,986  1,300 
Net gain on sale of securities -  149   134  504 
Increase in cash surrender value of life insurance    151  106   560  422 
Other noninterest income 646  488   2,225  2,098 
         
Total noninterest income 2,244  2,991   9,418  11,413 
         
Noninterest expense:     
Salaries and employee benefits 4,669  4,084   16,143  14,012 
Occupancy and facilities 596  511   2,426  2,129 
Loss (gain) on foreclosed assets (347) (218)  (166) (88)
Data processing and other office operations 855  568   3,876  2,630 
Advertising and promotion 155  172   755  484 
FDIC insurance premiums 116  82   378  192 
Other noninterest expenses 1,313  1,262   6,698  4,385 
         
Total noninterest expense 7,357  6,461   30,110  23,744 
         
Income before provision for income taxes 4,106  4,286   16,909  13,973 
Provision for income taxes 960  1,034   4,092  3,284 
         
Net income$3,146 $3,252  $12,817 $10,689 
Basic earnings per share$0.71 $0.73  $2.88 $2.40 
Diluted earnings per share$0.71 $0.73  $2.88 $2.40 


PSB Holdings, Inc.     
Consolidated Balance Sheets     
December 31, September 30, June 30, and March 31, 2021, unaudited, December 31, 2020 derived from audited financial statements
      
 Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,
(dollars in thousands, except per share data)20212021202120212020
      
Assets     
      
Cash and due from banks$16,896 $20,813 $18,589 $12,921 $15,723 
Interest-bearing deposits 6,579  1,044  906  985  1,056 
Federal funds sold 30,068  43,637  52,643  16,027  21,749 
      
Cash and cash equivalents 53,543  65,494  72,138  29,933  38,528 
Securities available for sale (at fair value) 310,445  301,853  261,685  227,824  228,296 
Bank certificates of deposit (at cost) 245  245  245  1,231  1,231 
Loans held for sale 3,061  214  1,756  622  954 
Loans receivable, net 876,337  874,524  863,254  829,964  820,956 
Accrued interest receivable 3,256  3,273  3,299  3,335  3,527 
Foreclosed assets 1,103  2,398  1,984  1,105  1,619 
Premises and equipment, net 12,695  12,725  13,241  11,077  10,920 
Mortgage servicing rights, net 1,714  1,702  1,696  1,732  1,657 
Federal Home Loan Bank stock (at cost) 2,646  2,646  2,646  2,283  2,283 
Cash surrender value of bank-owned life insurance 24,305  24,154  24,001  17,902  17,795 
Core deposit intangible 534  581  629  -  2 
Goodwill 2,541  2,541  2,541  113  113 
Other assets 6,286  5,313  5,523  5,102  4,074 
      
TOTAL ASSETS$1,298,711 $1,297,663 $1,254,638 $1,132,223 $1,131,955 
      
Liabilities     
      
Non-interest-bearing deposits$284,477 $291,440 $273,181 $242,974 $236,981 
Interest-bearing deposits 820,763  791,601  758,445  682,877  695,156 
      
Total deposits 1,105,240  1,083,041  1,031,626  925,851  932,137 
      
Federal Home Loan Bank advances 47,000  62,000  67,000  62,000  62,000 
Other borrowings 6,677  17,129  21,757  18,582  12,239 
Senior subordinated notes 2,500  2,500  2,500  2,500  2,500 
Junior subordinated debentures 12,717  12,691  12,666  7,732  7,732 
Accrued expenses and other liabilities 13,315  10,143  11,103  9,918  10,920 
      
Total liabilities 1,187,449  1,187,504  1,146,652  1,026,583  1,027,528 
      
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 - 4,440,329, 4,447,026, 4,454,922, 4,454,922 and     
4,452,287 shares, respectively 1,830  1,830  1,830  1,830  1,830 
Additional paid-in capital 8,059  8,003  7,946  7,890  7,818 
Retained earnings 114,627  112,502  108,863  107,751  103,855 
Accumulated other comprehensive income (loss), net of tax 628  1,530  2,869  1,691  4,458 
Treasury stock, at cost - 1,050,469, 1,043,772, 1,035,876, 1,035,876 and    
1,038,511 shares, respectively (13,882) (13,706) (13,522) (13,522) (13,534)
      
Total stockholders' equity 111,262  110,159  107,986  105,640  104,427 
      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$1,298,711 $1,297,663 $1,254,638 $1,132,223 $1,131,955 


PSB Holdings, Inc.     
Consolidated Statements of Comprehensive Income    
         
    Three Months Ended Year Ended
    December 31, December 31,
(dollars in thousands - unaudited) 2021  2020   2021  2020 
         
Net income$3,146 $3,252  $12,817 $10,689 
         
Other comprehensive income, net of tax:     
         
 Unrealized gain (loss) on securities available    
  for sale (973) 641   (3,927) 3,577 
         
 Reclassification adjustment for security     
  gain included in net income -  (108)  (97) (366)
         
 Unrealized gain (loss) on interest rate swap 31  135   154  (181)
         
 Reclassification adjustment of interest rate     
  swap settlements included in earnings 40  38   40  126 
         
         
Other comprehensive income (loss) (902) 706   (3,830) 3,156 
         
Comprehensive income$2,244 $3,958  $8,987 $13,845 


PSB Holding, Inc.      
Loan Composition by Purpose      
Quarter-ended (dollars in thousands)Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
 
       
Residential real estate:      
       
One to four family$168,584 $166,728 $169,456 $136,242 $125,530  
HELOC loans 17,198  18,011  18,263  16,908  18,312  
Residential construction & development 23,093  25,162  24,385  25,628  25,519  
Residential vacant land 1,763  6,629  2,172  2,524  3,305  
       
Total Residential real estate 210,638  216,530  214,276  181,302  172,666  
       
Commercial/Agricultural real estate:      
       
Owner occupied      
        Commercial real estate 202,416  203,509  202,767  194,514  187,059  
        SBA commercial real estate 1,568  1,140  1,164  1,445  1,483  
        Agriculture real estate 3,716  4,046  4,188  4,787  4,429  
        Construction and land development 22,380  17,705  6,460  4,121  5,468  
        Commercial vacant land 3,529  3,572  6,490  2,998  2,835  
       
Total Owner occupied 233,609  229,972  221,069  207,865  198,439  
       
Non-owner occupied      
        Commercial real estate 211,688  212,868  196,011  183,365  173,953  
        One to four family residential rental 52,437  49,542  47,097  31,914  31,363  
        SBA commercial real estate 1,010  682  703  718  749  
        Agricultural real estate -  -  -  -  -  
        Construction and land development 25,899  29,618  30,057  31,362  29,846  
        Commercial vacant land 4,534  4,851  5,203  7,970  8,402  
       
Total Non-owner occupied 295,568  297,561  279,071  255,329  244,313  
       
Commercial/Agricultural non-real estate:      
       
Municipal non-real estate 11,858  7,623  7,014  7,165  11,422  
Commercial line 52,151  47,646  45,386  46,833  41,619  
Other commercial non-real estate 61,115  54,481  55,002  49,246  52,723  
SBA commercial non-real estate 17,527  25,933  47,245  89,603  103,871  
Agricultural non-real estate 1,130  1,325  1,656  1,730  1,986  
       
Total Commercial/Agr. non-real estate 143,781  137,008  156,303  194,577  211,621  
       
Consumer non-real estate:      
       
Consumer installment 4,054  4,369  4,399  3,191  3,400  
Consumer line 480  477  436  498  353  
Other consumer 117  125  130  123  143  
       
Total Consumer non-real estate 4,651  4,971  4,965  3,812  3,896  
       
Gross loans 888,247  886,042  875,684  842,885  833,770  
Net deferred loan costs (fees) 107  (167) (738) (1,627) (2,140) 
Overdrafts 205  654  134  528  161  
Allowance for loan losses (12,222) (12,005) (11,826) (11,822) (10,835) 
       
Total loans receivable$876,337 $874,524 $863,254 $829,964 $820,956  


PSB Holdings, Inc.     
Nonperforming Assets as of:     
 Dec 31,Sep 30,Jun 30,Mar 31,Dec 31,
(dollars in thousands)20212021202120212020
      
Nonaccrual loans (excluding restructured loans)$6,425 $6,018 $5,208 $5,346 $2,071 
Nonaccrual restructured loans 1,000  1,526  1,062  1,090  1,064 
Restructured loans not on nonaccrual 5,213  5,159  5,205  5,242  5,414 
Accruing loans past due 90 days or more -  -  -  -  - 
      
Total nonperforming loans 12,638  12,703  11,475  11,678  8,549 
Other real estate owned 1,103  2,398  1,984  1,105  1,619 
      
Total nonperforming assets$13,741 $15,101 $13,459 $12,783 $10,168 
      
Nonperforming loans as a % of gross loans receivable 1.42%  1.43%  1.31%  1.39%  1.03% 
Total nonperforming assets as a % of total assets 1.06%  1.16%  1.07%  1.13%  0.90% 
Allowance for loan losses as a % of nonperforming loans 96.71%  94.51%  103.06%  101.23%  126.74% 


PSB Holdings, Inc.   
Nonperforming Assets >= $500,000 net book value before specific reserves  
At December 31, 2021   
(dollars in thousands)   
  GrossSpecific
Collateral DescriptionAsset TypePrincipalReserves
    
Real estate - HotelRestructured$4,744 $76 
Real estate - Buffet Style RestaurantNonaccrual 3,200  1,077 
Real estate - HotelNonaccrual 941  153 
Real estate - Buffet Style RestaurantRestructured/Nonaccrual 819  21 
    
Total listed nonperforming assets $9,704 $1,327 
Total bank wide nonperforming assets $13,741 $1,582 
Listed assets as a % of total nonperforming assets  71%  84% 
    
Largest Performing, but Impaired Loans at December 31, 2021 ($000s)  
  GrossSpecific
Collateral DescriptionAsset TypePrincipalReserves
    
Real estate - Equipment dealerImpaired$4,677 $285 
Real estate - HotelImpaired 3,809  352 
    
Total listed performing, but impaired loans $8,486 $637 
Total performing, but impaired loans $10,274 $932 
Listed assets as a % of total performing, but impaired loans  83%  68% 


PSB Holdings, Inc.        
Deposit Composition        
 December 31,  September 30, December 31,
(dollars in thousands)2021 2021 2020
 $% $% $%
         
Non-interest bearing demand$284,47725.7% $291,44026.9% $236,98125.4%
Interest-bearing demand and savings 413,52237.4%  388,72535.9%  332,67735.7%
Money market deposits 219,14519.8%  215,77219.9%  222,15623.8%
Retail and local time deposits <= $250 140,44312.8%  142,43913.2%  103,06411.1%
         
Total core deposits 1,057,58795.7%   1,038,37695.9%  894,87896.0%
Retail and local time deposits > $250 28,6592.6%  24,8242.3%  23,1122.5%
Broker & national time deposits <= $250 7,7930.7%  8,6400.8%  12,1531.3%
Broker & national time deposits > $250 11,2011.0%  11,2011.0%  1,9940.2%
         
Totals$1,105,240100.0%  $1,083,041100.0% $932,137100.0%


PSB Holdings, Inc.           
Average Balances ($000) and Interest Rates         
(dollars in thousands)           
              
              
   Quarter ended December 31, 2021 Quarter ended September 30, 2021 Quarter ended December 31, 2020
   Average Yield / Average Yield / Average Yield /
   BalanceInterestRate BalanceInterestRate BalanceInterestRate
Assets            
Interest-earning assets:           
   Loans (1)(2)$882,157 $8,9304.02% $874,429 $9,3344.23% $817,875 $8,3834.08%
   Taxable securities 214,626  6311.17%  195,160  5811.18%  129,832  5421.66%
   Tax-exempt securities (2)   83,518  6393.04%  84,241  6332.98%  80,619  6193.05%
   FHLB stock 2,646  182.70%  2,646  274.05%  2,283  274.70%
   Other  53,098  130.10%  75,119  180.10%  27,336  130.19%
              
   Total (2)  1,236,045  10,2313.28%  1,231,595  10,5933.41%  1,057,945  9,5843.60%
              
Non-interest-earning assets:          
   Cash and due from banks   19,967     20,310     14,011   
   Premises and equipment,          
      net  12,699     12,962     11,023   
   Cash surrender value ins   24,216     24,059     17,206   
   Other assets 14,859     15,317     10,572   
   Allowance for loan           
      losses  (12,006)    (11,874)    (10,693)  
              
   Total $1,295,780     $1,292,369     $1,100,064    
              
Liabilities & stockholders' equity          
Interest-bearing liabilities:          
   Savings and demand           
      deposits$388,549 $760.08% $383,136 $730.08% $298,696 $650.09%
   Money market deposits   222,399  930.17%  213,584  900.17%  218,455  1280.23%
   Time deposits 188,301  3070.65%  185,502  2410.52%  143,714  4641.28%
   FHLB borrowings 52,705  1921.45%  66,239  2201.32%  64,283  2281.41%
   Other borrowings 11,585  40.14%  24,993  90.14%  16,638  60.14%
   Senior sub. notes 2,500  294.60%  2,500  284.44%  2,500  294.61%
   Junior sub. debentures 12,704  1655.15%  12,679  1655.16%  7,732  914.68%
              
   Total  878,743  8660.39%  888,633  8260.37%  752,018  1,0110.53%
              
Non-interest-bearing liabilities:          
   Demand deposits 293,623     282,331     235,562   
   Other liabilities 11,325     11,017     9,694   
   Stockholders' equity 112,089     110,388     102,790   
              
   Total $1,295,780     $1,292,369     $1,100,064    
              
Net interest income $9,365   $9,767   $8,573 
Rate spread  2.89%   3.04%   3.07%
Net yield on interest-earning assets 3.01%   3.15%   3.22%
              
(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)       
   Year ended December 31, 2021 Year ended December 31, 2020
   Average Yield/ Average Yield/
   BalanceInterestRate BalanceInterestRate
Assets        
Interest-earning assets:       
   Loans (1)(2)$875,571 $37,7024.31% $784,126 $33,1114.22%
   Taxable securities 176,816  2,2721.28%  112,200  2,4612.19%
   Tax-exempt securities (2)   84,141  2,5473.03%  73,490  2,3293.17%
   FHLB stock 2,551  893.49%  2,243  1064.73%
   Other  48,616  580.12%  43,593  1480.34%
          
   Total (2)  1,187,695  42,6683.59%  1,015,652  38,1553.76%
          
Non-interest-earning assets:      
   Cash and due from banks   20,003     12,592   
   Premises and equipment,       
      net  12,625     11,013   
   Cash surrender value ins 22,527     16,990   
   Other assets 14,184     10,484   
   Allowance for loan       
      losses  (11,767)    (8,990)  
          
   Total $1,245,267     $1,057,741    
          
Liabilities & stockholders' equity      
Interest-bearing liabilities:       
   Savings and demand       
      deposits $364,602 $2790.08% $277,014 $5940.21%
   Money market deposits 216,888  3970.18%  202,666  8600.42%
   Time deposits 174,001  1,2360.71%  158,030  2,5981.64%
   FHLB borrowings 63,180  8481.34%  80,462  1,1751.46%
   Other borrowings 20,259  280.14%  9,602  310.32%
   Senior sub. notes 2,500  1134.52%  2,500  1134.52%
   Junior sub. debentures 10,708  5845.45%  7,732  3644.71%
          
   Total  852,138  3,4850.41%  738,006  5,7350.78%
          
Non-interest-bearing liabilities:      
   Demand deposits 271,866     211,155   
   Other liabilities 11,032     9,925   
   Stockholders' equity 110,231     98,655   
          
   Total $1,245,267     $1,057,741    
          
Net interest income $39,183   $32,420 
Rate spread   3.18%   2.98%
Net yield on interest-earning assets 3.30%   3.19%
          
(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