WAUSAU, Wis., July 25, 2022 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported second quarter earnings ending June 30, 2022 of $0.72 per share on net income of $3.2 million, compared to earnings of $0.75 per share on net income of $3.3 million during the first quarter ending March 31, 2022, and $0.48 per share on net income of $2.1 million during the second quarter ending June 30, 2021. Prior year June 2021 quarterly net income was reduced $2.0 million by costs related to the acquisition of Sunset Bank & Savings, Waukesha, Wisconsin.
The Company’s second quarter 2022 operating results reflected the following changes from the first quarter of 2022: (1) higher net interest income due to increased allocation to higher yielding loans with stable net interest margin; (2) higher salary and employee benefit expenses; and (3) lower noninterest income primarily due to lower gains on the sale of mortgage loans. Loans grew 5.7% during the quarter ending June 30, 2022, reflecting increased seasonal lending demand and construction project draws with increased commercial customer line of credit usage and commercial real estate loan originations.
“During 2022, we expect to see continued net interest income growth from both recent loan demand and incrementally improving net interest margin. Our lending teams have done an excellent job growing the loan portfolio with a combination of existing customers as well as new customers being brought into the Bank. Additionally, credit quality continues to improve, and operating expenses are expected to remain well-controlled. We believe we will be able to continue to deliver above average returns on tangible equity through the remainder of 2022,” stated Scott Cattanach, President and CEO.
June 30, 2022 Highlights:
- Net interest income increased to $9.7 million for the quarter ended June 30, 2022, compared to $9.6 million for the quarter ended March 31, 2022, and less than the $10.2 million for the quarter ended June 30, 2021. PPP loan fee accretion of $41,000, $313,000, and $1.0 million was recognized during the quarters ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively.
- Noninterest income declined slightly to $1.9 million for the quarter ended June 30, 2022, from $2.0 million the previous quarter. The decline largely reflected a decline in the gain on sale of mortgage loans due to slower refinance origination activity in the rising interest rate environment.
- Noninterest expense increased $259,000 for the second quarter of 2022, to $7.5 million from $7.2 million the prior quarter. The increase primarily related to increased salary and benefit costs associated with higher health benefit claims.
- Loans receivable increased $50 million, or 5.7%, to $925 million at June 30, 2022 from $876 million one quarter earlier. At June 30, 2022, there were $1.0 million of PPP related loans yet outstanding. No loss losses provisions have yet been made during 2022.
- Tangible book value declined to $21.10 per share at June 30, 2022, due primarily to the recording of unrealized losses on securities available for sale driven by actions taken by the Federal Reserve to increase short-term interest rates and market expectations of future rate increases.
Balance Sheet and Asset Quality Review
Total assets increased to $1.31 billion at June 30, 2022, from $1.27 billion at March 31, 2022. Cash and cash equivalents increased to $39.4 million from $37.8 million one quarter earlier. Investment securities decreased $11.0 million to $278.7 million at June 30, 2022 from $289.7 million one quarter earlier. The decreased balance of investment securities reflects their lower fair value in today’s rising rate market and the use of available security liquidity to fund loan originations. At the beginning of the second quarter, the balance of the entire municipal investment portfolio was reclassified as held to maturity. It is expected the reclassification will limit future tangible book value impacts from changes in fair value of securities.
Total loans receivable increased to $925.3 million at June 30, 2022, from $875.6 million at March 31, 2022. Origination activity was robust during the quarter as seasonal loans increased during the warmer months. In addition to construction loan and commercial lines of credit draws during the quarter, loan growth reflected strong commercial real estate lending originations. PPP loans declined from $3.2 million at March 31, 2022, to $1.0 million at June 30, 2022. Heading into the third quarter, loan growth is expected to slow from the robust year to date pace and return toward historical levels with lower customer demand as economic uncertainty increases.
The allowance for loan losses decreased to 1.32% of gross loans at June 30, 2022, from 1.39% the prior quarter and 1.35% of gross loans one year earlier. Annualized net charge-offs to average loans reflected a net recovery at 0.02% for the quarter ended June 30, 2022. Non-performing assets declined to 0.88% of total assets at June 30, 2022, compared to 1.03% at March 31, 2022, and 1.07% at June 30, 2021. At June 30, 2022, non-performing assets consisted of $6.0 million in non-accrual loans, $146,000 in non-accrual restructured loans, $5.1 million in restructured loans not on non-accrual and $160,000 in foreclosed assets. A former branch location and other real estate owned related to the Sunset Bank acquisition were sold during the June 2022 quarter, reducing foreclosed assets.
Total deposits increased $24.1 million to $1.11 billion at June 30, 2022, compared to $1.09 billion at March 31, 2022, led by growth in non-interest bearing demand, money market and jumbo brokered deposits. At June 30, 2022, interest-bearing demand and savings deposits accounted for 33.8% of total deposits, followed by noninterest-bearing demand deposits at 25.5%, money market deposits at 20.4%, and retail and local time deposits at 14.5%. Broker and national time deposits accounted for 5.8% of total deposits at June 30, 2022, versus 4.1% at March 31, 2022. Brokered deposits have increased to support loan growth and to replace largely seasonal local deposit contraction.
FHLB advances increased to $67.0 million at June 30, 2022, compared to $47.0 million at March 31, 2022, while other borrowings increased to $4.6 million at June 30, 2022, compared to $4.3 million at March 31, 2022.
Operations Review
Net interest income increased to $9.7 million (on a net margin of 3.23%) for the second quarter of 2022, compared to $9.6 million (on a net margin of 3.24%) for the first quarter of 2022, and $10.2 million (on a net margin of 3.48%) for the second quarter of 2021. Earning asset yields increased 6 basis points to 3.57% during the second quarter of 2022, from 3.51% during the first quarter of 2022, while deposit and borrowing costs increased 9 basis points to 0.46% compared to 0.37% during the first quarter of 2022.
The increase in earning asset yields was due to higher yields on investment securities during the quarter ended June 30, 2022. Taxable security yields increased to 1.68% for the quarter ended June 30, 2022, from 1.42% in the quarter ended March 31, 2022. Loan yields decreased to 4.07% for the second quarter of 2022, from 4.12% for the first quarter of 2022. However, excluding SBA PPP loan origination income, loan yields were 4.05% in June 2022 compared to 3.98% in March 2022. Interest-bearing liabilities increased during the quarter from modest increases in core deposits along with greater use of brokered deposits at current market rates. Along with a further increase in asset yields, cost of deposits is expected to increase during 2022 as short-term market rates move higher.
Total noninterest income decreased for the second quarter of 2022, to $1.9 million from $2.0 million for the first quarter of 2022, due primarily to a decrease from gains on sale of mortgage loans. While mortgage loan originations have been negatively influenced by the rise in interest rates with less mortgage refinancing activity, mortgage loan servicing income has increased over the past year due in part to greater aggregate income association with the longer than previously expected servicing life. At June 30, 2022, the bank was servicing $391 million in secondary market mortgage loans for others.
Noninterest expense increased to $7.5 million for the second quarter of 2022, compared to $7.2 million for the first quarter of 2022. The second quarter of 2022 included increased salaries and employee benefit expenses related to higher health care benefit plan claims. Salary and employee benefit expenses were $4.5 million for the second quarter of 2022, compared to $4.4 million for the first 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 | |||||||||||||||
| June 30, and March 31, 2022, September 30, and June 30, 2021, unaudited, December 31, 2021 derived from audited financial statements | |||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | |||||||||||
| (dollars in thousands, except per share data) | 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 19,149 | $ | 18,322 | $ | 16,896 | $ | 20,813 | $ | 18,589 | |||||
| Interest-bearing deposits | 3,545 | 5,158 | 6,579 | 1,044 | 906 | ||||||||||
| Federal funds sold | 16,689 | 14,356 | 30,068 | 43,637 | 52,643 | ||||||||||
| Cash and cash equivalents | 39,383 | 37,836 | 53,543 | 65,494 | 72,138 | ||||||||||
| Securities available for sale (at fair value) | 190,478 | 289,704 | 308,744 | 300,192 | 260,062 | ||||||||||
| Securities held to maturity (fair values of $82,567, $0, $0, $0 and | |||||||||||||||
| $0 respectively | 88,216 | - | - | - | - | ||||||||||
| Equity securities | 1,781 | 1,720 | 1,701 | 1,661 | 1,623 | ||||||||||
| Bank certificates of deposit (at cost) | 245 | 245 | 245 | 245 | 245 | ||||||||||
| Loans held for sale | 270 | - | 3,061 | 214 | 1,756 | ||||||||||
| Loans receivable, net | 925,260 | 875,588 | 876,337 | 874,524 | 863,254 | ||||||||||
| Accrued interest receivable | 3,285 | 3,219 | 3,256 | 3,273 | 3,299 | ||||||||||
| Foreclosed assets | 160 | 1,103 | 1,103 | 2,398 | 1,984 | ||||||||||
| Premises and equipment, net | 12,981 | 12,906 | 12,695 | 12,725 | 13,241 | ||||||||||
| Mortgage servicing rights, net | 1,711 | 1,770 | 1,714 | 1,702 | 1,696 | ||||||||||
| Federal Home Loan Bank stock (at cost) | 2,646 | 2,646 | 2,646 | 2,646 | 2,646 | ||||||||||
| Cash surrender value of bank-owned life insurance | 24,608 | 24,455 | 24,305 | 24,154 | 24,001 | ||||||||||
| Core deposit intangible | 449 | 487 | 534 | 581 | 629 | ||||||||||
| Goodwill | 2,541 | 2,541 | 2,541 | 2,541 | 2,541 | ||||||||||
| Other assets | 13,550 | 11,725 | 6,286 | 5,313 | 5,523 | ||||||||||
| TOTAL ASSETS | $ | 1,307,564 | $ | 1,265,945 | $ | 1,298,711 | $ | 1,297,663 | $ | 1,254,638 | |||||
| Liabilities | |||||||||||||||
| Non-interest-bearing deposits | $ | 283,592 | $ | 272,611 | $ | 284,477 | $ | 291,440 | $ | 273,181 | |||||
| Interest-bearing deposits | 829,867 | 816,794 | 820,763 | 791,601 | 758,445 | ||||||||||
| Total deposits | 1,113,459 | 1,089,405 | 1,105,240 | 1,083,041 | 1,031,626 | ||||||||||
| Federal Home Loan Bank advances | 67,000 | 47,000 | 47,000 | 62,000 | 67,000 | ||||||||||
| Other borrowings | 4,601 | 4,304 | 6,677 | 17,129 | 21,757 | ||||||||||
| Senior subordinated notes | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | ||||||||||
| Junior subordinated debentures | 12,768 | 12,742 | 12,717 | 12,691 | 12,666 | ||||||||||
| Accrued expenses and other liabilities | 10,938 | 10,208 | 13,315 | 10,143 | 11,103 | ||||||||||
| Total liabilities | 1,211,266 | 1,166,159 | 1,187,449 | 1,187,504 | 1,146,652 | ||||||||||
| 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 - 4,423,037, 4,434,840, 4,440,329, 4,447,026 and | |||||||||||||||
| 4,454,922 shares, respectively | 1,830 | 1,830 | 1,830 | 1,830 | 1,830 | ||||||||||
| Additional paid-in capital | 8,238 | 8,183 | 8,059 | 8,003 | 7,946 | ||||||||||
| Retained earnings | 120,043 | 117,957 | 114,627 | 112,502 | 108,863 | ||||||||||
| Accumulated other comprehensive income (loss), net of tax | (19,423 | ) | (14,097 | ) | 628 | 1,530 | 2,869 | ||||||||
| Treasury stock, at cost - 1,067,761, 1,055,958, 1,050,469, 1,043,772 and | |||||||||||||||
| 1,035,876 shares, respectively | (14,390 | ) | (14,087 | ) | (13,882 | ) | (13,706 | ) | (13,522 | ) | |||||
| Total stockholders' equity | 96,298 | 99,786 | 111,262 | 110,159 | 107,986 | ||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,307,564 | $ | 1,265,945 | $ | 1,298,711 | $ | 1,297,663 | $ | 1,254,638 | |||||
| PSB Holdings, Inc. | |||||||||||||||
| Consolidated Statements of Income | |||||||||||||||
| Quarter Ended | |||||||||||||||
| (dollars in thousands, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||
| except per share data - unaudited) | 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||
| Interest and dividend income: | |||||||||||||||
| Loans, including fees | $ | 9,295 | $ | 9,054 | $ | 8,918 | $ | 9,323 | $ | 9,972 | |||||
| Securities: | |||||||||||||||
| Taxable | 859 | 762 | 631 | 581 | 553 | ||||||||||
| Tax-exempt | 537 | 533 | 505 | 500 | 505 | ||||||||||
| Other interest and dividends | 52 | 42 | 31 | 45 | 40 | ||||||||||
| Total interest and dividend income | 10,743 | 10,391 | 10,085 | 10,449 | 11,070 | ||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 595 | 443 | 476 | 404 | 485 | ||||||||||
| FHLB advances | 234 | 169 | 192 | 220 | 221 | ||||||||||
| Other borrowings | 4 | 2 | 4 | 9 | 8 | ||||||||||
| Senior subordinated notes | 28 | 28 | 29 | 28 | 28 | ||||||||||
| Junior subordinated debentures | 179 | 166 | 165 | 165 | 165 | ||||||||||
| Total interest expense | 1,040 | 808 | 866 | 826 | 907 | ||||||||||
| Net interest income | 9,703 | 9,583 | 9,219 | 9,623 | 10,163 | ||||||||||
| Provision for loan losses | - | - | - | - | - | ||||||||||
| Net interest income after provision for loan losses | 9,703 | 9,583 | 9,219 | 9,623 | 10,163 | ||||||||||
| Noninterest income: | |||||||||||||||
| Service fees | 392 | 388 | 382 | 379 | 347 | ||||||||||
| Gain on sale of mortgage loans | 182 | 277 | 451 | 494 | 663 | ||||||||||
| Mortgage loan servicing, net | 117 | 176 | 114 | 111 | 9 | ||||||||||
| Investment and insurance sales commissions | 404 | 456 | 500 | 426 | 465 | ||||||||||
| Net gain on sale of securities | - | - | - | - | 113 | ||||||||||
| Increase in cash surrender value of life insurance | 152 | 150 | 151 | 153 | 148 | ||||||||||
| Other noninterest income | 686 | 531 | 646 | 563 | 554 | ||||||||||
| Total noninterest income | 1,933 | 1,978 | 2,244 | 2,126 | 2,299 | ||||||||||
| Noninterest expense: | |||||||||||||||
| Salaries and employee benefits | 4,548 | 4,390 | 4,669 | 4,099 | 3,915 | ||||||||||
| Occupancy and facilities | 629 | 665 | 596 | 614 | 647 | ||||||||||
| Loss (gain) on foreclosed assets | - | (6 | ) | (347 | ) | 28 | 23 | ||||||||
| Data processing and other office operations | 912 | 861 | 855 | 828 | 1,499 | ||||||||||
| Advertising and promotion | 173 | 152 | 155 | 199 | 322 | ||||||||||
| Core deposit intangible amortization | 38 | 47 | 47 | 47 | 31 | ||||||||||
| Other noninterest expenses | 1,151 | 1,083 | 1,382 | 1,131 | 3,170 | ||||||||||
| Total noninterest expense | 7,451 | 7,192 | 7,357 | 6,946 | 9,607 | ||||||||||
| Income before provision for income taxes | 4,185 | 4,369 | 4,106 | 4,803 | 2,855 | ||||||||||
| Provision for income taxes | 993 | 1,039 | 960 | 1,165 | 718 | ||||||||||
| Net income | $ | 3,192 | $ | 3,330 | $ | 3,146 | $ | 3,638 | $ | 2,137 | |||||
| Basic earnings per share | $ | 0.72 | $ | 0.75 | $ | 0.71 | $ | 0.82 | $ | 0.48 | |||||
| Diluted earnings per share | $ | 0.72 | $ | 0.75 | $ | 0.71 | $ | 0.82 | $ | 0.48 | |||||
| PSB Holdings, Inc. | |||||||||||||
| Consolidated Statements of Income | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| (dollars in thousands, | June | June | |||||||||||
| except per share data - unaudited) | 2022 | 2021 | 2022 | 2021 | |||||||||
| Interest and dividend income: | |||||||||||||
| Loans, including fees | $ | 9,295 | $ | 9,972 | $ | 18,349 | $ | 19,414 | |||||
| Securities: | |||||||||||||
| Taxable | 859 | 553 | 1,621 | 1,060 | |||||||||
| Tax-exempt | 537 | 505 | 1,070 | 1,007 | |||||||||
| Other interest and dividends | 52 | 40 | 94 | 71 | |||||||||
| Total interest and dividend income | 10,743 | 11,070 | 21,134 | 21,552 | |||||||||
| Interest expense: | |||||||||||||
| Deposits | 595 | 485 | 1,038 | 1,032 | |||||||||
| FHLB advances | 234 | 221 | 403 | 436 | |||||||||
| Other borrowings | 4 | 8 | 6 | 15 | |||||||||
| Senior subordinated notes | 28 | 28 | 56 | 56 | |||||||||
| Junior subordinated debentures | 179 | 165 | 345 | 254 | |||||||||
| Total interest expense | 1,040 | 907 | 1,848 | 1,793 | |||||||||
| Net interest income | 9,703 | 10,163 | 19,286 | 19,759 | |||||||||
| Provision for loan losses | - | - | - | 1,000 | |||||||||
| Net interest income after provision for loan losses | 9,703 | 10,163 | 19,286 | 18,759 | |||||||||
| Noninterest income: | |||||||||||||
| Service fees | 392 | 347 | 780 | 679 | |||||||||
| Gain on sale of mortgage loans | 182 | 663 | 459 | 1,815 | |||||||||
| Mortgage loan servicing, net | 117 | 9 | 293 | 88 | |||||||||
| Investment and insurance sales commissions | 404 | 465 | 860 | 1,060 | |||||||||
| Net gain on sale of securities | - | 113 | - | 134 | |||||||||
| Increase in cash surrender value of life insurance | 152 | 148 | 302 | 256 | |||||||||
| Other noninterest income | 686 | 554 | 1,217 | 1,016 | |||||||||
| Total noninterest income | 1,933 | 2,299 | 3,911 | 5,048 | |||||||||
| Noninterest expense: | |||||||||||||
| Salaries and employee benefits | 4,548 | 3,915 | 8,938 | 7,375 | |||||||||
| Occupancy and facilities | 629 | 647 | 1,294 | 1,216 | |||||||||
| Loss (gain) on foreclosed assets | - | 23 | (6 | ) | 153 | ||||||||
| Data processing and other office operations | 912 | 1,499 | 1,773 | 2,193 | |||||||||
| Advertising and promotion | 173 | 322 | 325 | 401 | |||||||||
| Core deposit intangible amortization | 38 | 31 | 85 | 34 | |||||||||
| Other noninterest expenses | 1,151 | 3,170 | 2,234 | 4,435 | |||||||||
| Total noninterest expense | 7,451 | 9,607 | 14,643 | 15,807 | |||||||||
| Income before provision for income taxes | 4,185 | 2,855 | 8,554 | 8,000 | |||||||||
| Provision for income taxes | 993 | 718 | 2,032 | 1,967 | |||||||||
| Net income | $ | 3,192 | $ | 2,137 | $ | 6,522 | $ | 6,033 | |||||
| Basic earnings per share | $ | 0.72 | $ | 0.48 | $ | 1.47 | $ | 1.35 | |||||
| Diluted earnings per share | $ | 0.72 | $ | 0.48 | $ | 1.47 | $ | 1.35 | |||||
| PSB Holdings, Inc. | ||||||||||||||||
| Quarterly Financial Summary | ||||||||||||||||
| (dollars in thousands, except per share data) | Quarter ended | |||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||
| Earnings and dividends: | 2022 | 2022 | 2021 | 2021 | 2021 | |||||||||||
| Interest income | $ | 10,743 | $ | 10,391 | $ | 10,085 | $ | 10,449 | $ | 11,070 | ||||||
| Interest expense | $ | 1,040 | $ | 808 | $ | 866 | $ | 826 | $ | 907 | ||||||
| Net interest income | $ | 9,703 | $ | 9,583 | $ | 9,219 | $ | 9,623 | $ | 10,163 | ||||||
| Provision for loan losses | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
| Other noninterest income | $ | 1,933 | $ | 1,978 | $ | 2,244 | $ | 2,126 | $ | 2,299 | ||||||
| Other noninterest expense | $ | 7,451 | $ | 7,192 | $ | 7,357 | $ | 6,946 | $ | 9,607 | ||||||
| Net income | $ | 3,192 | $ | 3,330 | $ | 3,146 | $ | 3,638 | $ | 2,137 | ||||||
| Basic earnings per share (3) | $ | 0.72 | $ | 0.75 | $ | 0.71 | $ | 0.82 | $ | 0.48 | ||||||
| Diluted earnings per share (3) | $ | 0.72 | $ | 0.75 | $ | 0.71 | $ | 0.82 | $ | 0.48 | ||||||
| Dividends declared per share (3) | $ | 0.25 | $ | - | $ | 0.23 | $ | - | $ | 0.23 | ||||||
| Tangible net book value per share (4) | $ | 21.10 | $ | 21.82 | $ | 24.36 | $ | 24.07 | $ | 23.53 | ||||||
| Semi-annual dividend payout ratio | 16.96 | % | n/a | 15.05 | % | n/a | 17.04 | % | ||||||||
| Average common shares outstanding | 4,428,939 | 4,433,375 | 4,445,465 | 4,450,755 | 4,454,922 | |||||||||||
| Balance sheet - average balances: | ||||||||||||||||
| Loans receivable, net of allowances for loss | $ | 904,710 | $ | 878,979 | $ | 870,151 | $ | 862,555 | $ | 891,886 | ||||||
| Assets | $ | 1,290,906 | $ | 1,278,565 | $ | 1,295,780 | $ | 1,292,369 | $ | 1,251,738 | ||||||
| Deposits | $ | 1,099,314 | $ | 1,084,814 | $ | 1,092,872 | $ | 1,064,553 | $ | 1,023,229 | ||||||
| Stockholders' equity | $ | 98,261 | $ | 108,803 | $ | 112,089 | $ | 110,388 | $ | 105,932 | ||||||
| Performance ratios: | ||||||||||||||||
| Return on average assets (1) | 0.99 | % | 1.06 | % | 0.96 | % | 1.12 | % | 0.68 | % | ||||||
| Return on average stockholders' equity (1) | 13.03 | % | 12.41 | % | 11.14 | % | 13.08 | % | 8.09 | % | ||||||
| Average stockholders' equity less accumulated | ||||||||||||||||
| other comprehensive income (loss) to | ||||||||||||||||
| average assets | 8.80 | % | 8.99 | % | 8.57 | % | 8.39 | % | 8.27 | % | ||||||
| Net loan charge-offs (recoveries) to average loans (1) | -0.02 | % | -0.05 | % | -0.10 | % | -0.08 | % | 0.00 | % | ||||||
| Nonperforming loans to gross loans | 1.21 | % | 1.34 | % | 1.42 | % | 1.43 | % | 1.31 | % | ||||||
| Nonperforming assets to total assets | 0.88 | % | 1.03 | % | 1.06 | % | 1.16 | % | 1.07 | % | ||||||
| Allowance for loan losses to gross loans | 1.32 | % | 1.39 | % | 1.38 | % | 1.35 | % | 1.35 | % | ||||||
| Nonperforming assets to tangible equity | ||||||||||||||||
| plus the allowance for loan losses (4) | 11.04 | % | 12.10 | % | 11.58 | % | 12.87 | % | 11.71 | % | ||||||
| Net interest rate margin (1)(2) | 3.23 | % | 3.24 | % | 3.01 | % | 3.15 | % | 3.48 | % | ||||||
| Net interest rate spread (1)(2) | 3.11 | % | 3.14 | % | 2.89 | % | 3.04 | % | 3.37 | % | ||||||
| Service fee revenue as a percent of | ||||||||||||||||
| average demand deposits (1) | 0.57 | % | 0.58 | % | 0.52 | % | 0.53 | % | 0.51 | % | ||||||
| Noninterest income as a percent | ||||||||||||||||
| of gross revenue | 15.25 | % | 15.99 | % | 18.20 | % | 16.91 | % | 17.20 | % | ||||||
| Efficiency ratio (2) | 63.20 | % | 61.40 | % | 63.37 | % | 58.40 | % | 76.20 | % | ||||||
| Noninterest expenses to average assets (1) | 2.32 | % | 2.28 | % | 2.25 | % | 2.13 | % | 3.08 | % | ||||||
| Tangible equity to tangible assets (4) | 7.15 | % | 7.66 | % | 8.35 | % | 8.27 | % | 8.38 | % | ||||||
| Stock price information: | ||||||||||||||||
| High | $ | 26.35 | $ | 26.45 | $ | 27.00 | $ | 26.50 | $ | 26.50 | ||||||
| Low | $ | 22.82 | $ | 25.80 | $ | 24.60 | $ | 24.52 | $ | 25.00 | ||||||
| Last trade value at quarter-end | $ | 23.50 | $ | 26.00 | $ | 26.05 | $ | 24.95 | $ | 26.25 | ||||||
| (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 | |||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | |||||||||||||
| (dollars in thousands - unaudited) | 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||
| Net income | $ | 3,192 | $ | 3,330 | $ | 3,146 | $ | 3,638 | $ | 2,137 | |||||||
| Other comprehensive income, net of tax: | |||||||||||||||||
| Unrealized gain (loss) on securities available | |||||||||||||||||
| for sale | (5,573 | ) | (14,847 | ) | (973 | ) | (1,374 | ) | 1,224 | ||||||||
| Reclassification adjustment for security | |||||||||||||||||
| gain included in net income | - | - | - | - | (83 | ) | |||||||||||
| Amortization of unrealized loss included in net | |||||||||||||||||
| income on securities available for sale | |||||||||||||||||
| transferred to securities held to maturity | 176 | - | - | - | - | ||||||||||||
| Unrealized gain (loss) on interest rate swap | 43 | 85 | 31 | (5 | ) | (4 | ) | ||||||||||
| Reclassification adjustment of interest rate | |||||||||||||||||
| swap settlements included in earnings | 28 | 37 | 40 | 40 | 39 | ||||||||||||
| Other comprehensive income (loss) | (5,326 | ) | (14,725 | ) | (902 | ) | (1,339 | ) | 1,176 | ||||||||
| Comprehensive income (loss) | $ | (2,134 | ) | $ | (11,395 | ) | $ | 2,244 | $ | 2,299 | $ | 3,313 | |||||
| PSB Holdings, Inc. | |||||||||||||||
| Nonperforming Assets as of: | |||||||||||||||
| Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |||||||||||
| (dollars in thousands) | 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||
| Nonaccrual loans (excluding restructured loans) | $ | 6,036 | $ | 6,537 | $ | 6,425 | $ | 6,018 | $ | 5,208 | |||||
| Nonaccrual restructured loans | 146 | 170 | 1,000 | 1,526 | 1,062 | ||||||||||
| Restructured loans not on nonaccrual | 5,137 | 5,172 | 5,213 | 5,159 | 5,205 | ||||||||||
| Accruing loans past due 90 days or more | - | - | - | - | - | ||||||||||
| Total nonperforming loans | 11,319 | 11,879 | 12,638 | 12,703 | 11,475 | ||||||||||
| Other real estate owned | 160 | 1,103 | 1,103 | 2,398 | 1,984 | ||||||||||
| Total nonperforming assets | $ | 11,479 | $ | 12,982 | $ | 13,741 | $ | 15,101 | $ | 13,459 | |||||
| Nonperforming loans as a % of gross loans receivable | 1.21 | % | 1.34 | % | 1.42 | % | 1.43 | % | 1.31 | % | |||||
| Total nonperforming assets as a % of total assets | 0.88 | % | 1.03 | % | 1.06 | % | 1.16 | % | 1.07 | % | |||||
| Allowance for loan losses as a % of nonperforming loans | 109.48 | % | 103.89 | % | 96.71 | % | 94.51 | % | 103.06 | % | |||||
| PSB Holdings, Inc. | |||||||
| Nonperforming Assets >= $500,000 net book value before specific reserves | |||||||
| At June 30, 2022 | |||||||
| (dollars in thousands) | |||||||
| Gross | Specific | ||||||
| Collateral Description | Asset Type | Principal | Reserves | ||||
| Real estate - Hotel | Restructured | $ | 4,668 | $ | 1 | ||
| Real estate - Buffet Style Restaurant | Nonaccrual | 3,069 | 1,327 | ||||
| Real estate - Independent Auto Repair | Nonaccrual | 870 | 120 | ||||
| Total listed nonperforming assets | $ | 8,607 | $ | 1,448 | |||
| Total bank wide nonperforming assets | $ | 11,479 | $ | 1,707 | |||
| Listed assets as a % of total nonperforming assets | 75 | % | 85 | % | |||
| PSB Holding, Inc. | |||||||||||||||
| Loan Composition by Purpose | |||||||||||||||
| Quarter-ended (dollars in thousands) | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | ||||||||||
| Residential real estate: | |||||||||||||||
| One to four family | $ | 169,437 | $ | 168,083 | $ | 168,584 | $ | 166,728 | $ | 169,456 | |||||
| HELOC loans | 17,776 | 16,709 | 17,198 | 18,011 | 18,263 | ||||||||||
| Residential construction & development | 22,462 | 21,590 | 23,093 | 25,162 | 24,385 | ||||||||||
| Residential vacant land | 1,599 | 1,697 | 1,763 | 6,629 | 2,172 | ||||||||||
| Total Residential real estate | 211,274 | 208,079 | 210,638 | 216,530 | 214,276 | ||||||||||
| Commercial/Agricultural real estate: | |||||||||||||||
| Owner occupied | |||||||||||||||
| Commercial real estate | 205,976 | 208,271 | 202,416 | 203,509 | 202,767 | ||||||||||
| SBA commercial real estate | 2,458 | 2,530 | 1,568 | 1,140 | 1,164 | ||||||||||
| Agriculture real estate | 3,583 | 3,651 | 3,716 | 4,046 | 4,188 | ||||||||||
| Construction and land development | 31,465 | 26,111 | 22,380 | 17,705 | 6,460 | ||||||||||
| Commercial vacant land | 5,351 | 5,194 | 3,529 | 3,572 | 6,490 | ||||||||||
| Total Owner occupied | 248,833 | 245,757 | 233,609 | 229,972 | 221,069 | ||||||||||
| Non-owner occupied | |||||||||||||||
| Commercial real estate | 227,400 | 212,407 | 211,688 | 212,868 | 196,011 | ||||||||||
| One to four family residential rental | 61,749 | 56,305 | 52,437 | 49,542 | 47,097 | ||||||||||
| SBA commercial real estate | - | - | 1,010 | 682 | 703 | ||||||||||
| Agricultural real estate | - | - | - | - | - | ||||||||||
| Construction and land development | 25,086 | 23,080 | 25,899 | 29,618 | 30,057 | ||||||||||
| Commercial vacant land | 4,287 | 4,191 | 4,534 | 4,851 | 5,203 | ||||||||||
| Total Non-owner occupied | 318,522 | 295,983 | 295,568 | 297,561 | 279,071 | ||||||||||
| Commercial/Agricultural non-real estate: | |||||||||||||||
| Municipal non-real estate | 6,352 | 6,403 | 11,858 | 7,623 | 7,014 | ||||||||||
| Commercial line | 65,728 | 54,626 | 52,151 | 47,646 | 45,386 | ||||||||||
| Other commercial non-real estate | 76,065 | 64,260 | 61,115 | 54,481 | 55,002 | ||||||||||
| SBA commercial non-real estate | 3,926 | 6,068 | 17,527 | 25,933 | 47,245 | ||||||||||
| Agricultural non-real estate | 1,409 | 1,340 | 1,130 | 1,325 | 1,656 | ||||||||||
| Total Commercial/Agr. non-real estate | 153,480 | 132,697 | 143,781 | 137,008 | 156,303 | ||||||||||
| Consumer non-real estate: | |||||||||||||||
| Consumer installment | 4,305 | 4,201 | 4,054 | 4,369 | 4,399 | ||||||||||
| Consumer line | 493 | 486 | 480 | 477 | 436 | ||||||||||
| Other consumer | 123 | 118 | 117 | 125 | 130 | ||||||||||
| Total Consumer non-real estate | 4,921 | 4,805 | 4,651 | 4,971 | 4,965 | ||||||||||
| Gross loans | 937,030 | 887,321 | 888,247 | 886,042 | 875,684 | ||||||||||
| Net deferred loan costs (fees) | 503 | 423 | 107 | (167 | ) | (738 | ) | ||||||||
| Overdrafts | 119 | 185 | 205 | 654 | 134 | ||||||||||
| Allowance for loan losses | (12,392 | ) | (12,341 | ) | (12,222 | ) | (12,005 | ) | (11,826 | ) | |||||
| Total loans receivable | $ | 925,260 | $ | 875,588 | $ | 876,337 | $ | 874,524 | $ | 863,254 | |||||
| PSB Holdings, Inc. | ||||||||||||||||||||||||
| Deposit Composition | ||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||||
| (dollars in thousands) | 2022 | 2022 | 2021 | 2021 | 2021 | |||||||||||||||||||
| $ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||||||
| Non-interest bearing demand | $ | 283,592 | 25.5 | % | $ | 272,611 | 25.0 | % | $ | 284,477 | 25.7 | % | $ | 291,440 | 26.9 | % | $ | 273,181 | 26.5 | % | ||||
| Interest-bearing demand and savings | 376,150 | 33.8 | % | 382,829 | 35.1 | % | 413,522 | 37.4 | % | 388,725 | 35.9 | % | 366,563 | 35.4 | % | |||||||||
| Money market deposits | 226,907 | 20.4 | % | 221,982 | 20.4 | % | 219,145 | 19.8 | % | 215,772 | 19.9 | % | 212,285 | 20.6 | % | |||||||||
| Retail and local time deposits <= $250 | 136,230 | 12.1 | % | 138,821 | 12.8 | % | 140,443 | 12.8 | % | 142,439 | 13.2 | % | 140,895 | 13.7 | % | |||||||||
| Total core deposits | 1,022,879 | 91.8 | % | 1,016,243 | 93.3 | % | 1,057,587 | 95.7 | % | 1,038,376 | 95.9 | % | 992,924 | 96.2 | % | |||||||||
| Retail and local time deposits > $250 | 26,882 | 2.4 | % | 28,754 | 2.6 | % | 28,659 | 2.6 | % | 24,824 | 2.3 | % | 25,834 | 2.5 | % | |||||||||
| Broker & national time deposits <= $250 | 7,443 | 0.7 | % | 7,443 | 0.7 | % | 7,793 | 0.7 | % | 8,640 | 0.8 | % | 10,874 | 1.1 | % | |||||||||
| Broker & national time deposits > $250 | 56,255 | 5.1 | % | 36,965 | 3.4 | % | 11,201 | 1.0 | % | 11,201 | 1.0 | % | 1,994 | 0.2 | % | |||||||||
| Totals | $ | 1,113,459 | 100.0 | % | $ | 1,089,405 | 100.0 | % | $ | 1,105,240 | 100.0 | % | $ | 1,083,041 | 100.0 | % | $ | 1,031,626 | 100.0 | % | ||||
| PSB Holdings, Inc. | ||||||||||||||||||||||||||
| Average Balances ($000) and Interest Rates | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Quarter ended June 30, 2022 | Quarter ended March 31, 2022 | Quarter ended June 30, 2021 | ||||||||||||||||||||||||
| Average | Yield / | Average | Yield / | Average | Yield / | |||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||
| Loans (1)(2) | $ | 917,065 | $ | 9,305 | 4.07 | % | $ | 891,257 | $ | 9,065 | 4.12 | % | $ | 906,233 | $ | 9,983 | 4.42 | % | ||||||||
| Taxable securities | 205,040 | 859 | 1.68 | % | 216,965 | 762 | 1.42 | % | 153,960 | 553 | 1.44 | % | ||||||||||||||
| Tax-exempt securities (2) | 79,936 | 680 | 3.41 | % | 87,719 | 675 | 3.12 | % | 84,593 | 639 | 3.03 | % | ||||||||||||||
| FHLB stock | 2,650 | 16 | 2.42 | % | 2,646 | 34 | 5.21 | % | 2,625 | 23 | 3.51 | % | ||||||||||||||
| Other | 20,651 | 36 | 0.70 | % | 20,448 | 8 | 0.16 | % | 42,253 | 17 | 0.16 | % | ||||||||||||||
| Total (2) | 1,225,342 | 10,896 | 3.57 | % | 1,219,035 | 10,544 | 3.51 | % | 1,189,664 | 11,215 | 3.78 | % | ||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||||||||
| Cash and due from banks | 18,731 | 17,996 | 25,422 | |||||||||||||||||||||||
| Premises and equipment, | ||||||||||||||||||||||||||
| net | 13,039 | 12,732 | 11,640 | |||||||||||||||||||||||
| Cash surrender value ins | 24,510 | 24,361 | 23,906 | |||||||||||||||||||||||
| Other assets | 21,639 | 16,719 | 16,004 | |||||||||||||||||||||||
| Allowance for loan | ||||||||||||||||||||||||||
| losses | (12,355 | ) | (12,278 | ) | (11,816 | ) | ||||||||||||||||||||
| Total | $ | 1,290,906 | $ | 1,278,565 | $ | 1,254,820 | ||||||||||||||||||||
| Liabilities & stockholders' equity | ||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||
| Savings and demand | ||||||||||||||||||||||||||
| deposits | $ | 379,734 | $ | 122 | 0.13 | % | $ | 396,261 | $ | 69 | 0.07 | % | $ | 352,572 | $ | 65 | 0.07 | % | ||||||||
| Money market deposits | 217,639 | 121 | 0.22 | % | 218,367 | 89 | 0.17 | % | 213,122 | 96 | 0.18 | % | ||||||||||||||
| Time deposits | 224,539 | 352 | 0.63 | % | 198,431 | 285 | 0.58 | % | 182,758 | 324 | 0.71 | % | ||||||||||||||
| FHLB borrowings | 62,659 | 234 | 1.50 | % | 51,200 | 169 | 1.34 | % | 71,846 | 221 | 1.23 | % | ||||||||||||||
| Other borrowings | 5,028 | 4 | 0.32 | % | 6,452 | 2 | 0.13 | % | 25,525 | 8 | 0.13 | % | ||||||||||||||
| Senior sub. notes | 2,500 | 28 | 4.49 | % | 2,500 | 28 | 4.54 | % | 2,500 | 28 | 4.49 | % | ||||||||||||||
| Junior sub. debentures | 12,755 | 179 | 5.63 | % | 12,730 | 166 | 5.29 | % | 11,827 | 165 | 5.60 | % | ||||||||||||||
| Total | 904,854 | 1,040 | 0.46 | % | 885,941 | 808 | 0.37 | % | 860,150 | 907 | 0.42 | % | ||||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||||||||
| Demand deposits | 277,402 | 271,755 | 274,777 | |||||||||||||||||||||||
| Other liabilities | 10,389 | 12,066 | 11,430 | |||||||||||||||||||||||
| Stockholders' equity | 98,261 | 108,803 | 108,463 | |||||||||||||||||||||||
| Total | $ | 1,290,906 | $ | 1,278,565 | $ | 1,254,820 | ||||||||||||||||||||
| Net interest income | $ | 9,856 | $ | 9,736 | $ | 10,308 | ||||||||||||||||||||
| Rate spread | 3.11 | % | 3.14 | % | 3.36 | % | ||||||||||||||||||||
| Net yield on interest-earning assets | 3.23 | % | 3.24 | % | 3.48 | % | ||||||||||||||||||||
| (1) Nonaccrual loans are included in the daily average loan balances outstanding. | ||||||||||||||||||||||||||
| (2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%. | ||||||||||||||||||||||||||
| PSB Holdings, Inc. | |||||||||||||||||
| Average Balances ($000) and Interest Rates | |||||||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Six months ended June 30, 2022 | Six months ended June 30, 2021 | ||||||||||||||||
| Average | Yield/ | Average | Yield/ | ||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||
| Assets | |||||||||||||||||
| Interest-earning assets: | |||||||||||||||||
| Loans (1)(2) | $ | 904,232 | $ | 18,370 | 4.10 | % | $ | 872,694 | $ | 19,438 | 4.49 | % | |||||
| Taxable securities | 210,968 | 1,621 | 1.55 | % | 148,280 | 1,060 | 1.44 | % | |||||||||
| Tax-exempt securities (2) | 83,808 | 1,354 | 3.26 | % | 84,407 | 1,275 | 3.05 | % | |||||||||
| FHLB stock | 2,648 | 50 | 3.81 | % | 2,455 | 44 | 3.61 | % | |||||||||
| Other | 20,326 | 44 | 0.44 | % | 32,702 | 27 | 0.17 | % | |||||||||
| Total (2) | 1,221,982 | 21,439 | 3.54 | % | 1,140,538 | 21,844 | 3.86 | % | |||||||||
| Non-interest-earning assets: | |||||||||||||||||
| Cash and due from banks | 18,366 | 19,866 | |||||||||||||||
| Premises and equipment, | |||||||||||||||||
| net | 12,886 | 11,338 | |||||||||||||||
| Cash surrender value ins | 24,436 | 20,890 | |||||||||||||||
| Other assets | 19,192 | 13,401 | |||||||||||||||
| Allowance for loan | |||||||||||||||||
| losses | (12,316 | ) | (11,507 | ) | |||||||||||||
| Total | $ | 1,284,546 | $ | 1,194,526 | |||||||||||||
| Liabilities & stockholders' equity | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| Savings and demand | |||||||||||||||||
| deposits | $ | 387,952 | $ | 191 | 0.10 | % | $ | 343,009 | $ | 130 | 0.08 | % | |||||
| Money market deposits | 217,529 | 210 | 0.19 | % | 215,254 | 214 | 0.20 | % | |||||||||
| Time deposits | 211,557 | 637 | 0.61 | % | 160,887 | 688 | 0.86 | % | |||||||||
| FHLB borrowings | 56,961 | 403 | 1.43 | % | 66,950 | 436 | 1.31 | % | |||||||||
| Other borrowings | 5,736 | 6 | 0.21 | % | 22,263 | 15 | 0.14 | % | |||||||||
| Senior sub. notes | 2,500 | 56 | 4.52 | % | 2,500 | 56 | 4.52 | % | |||||||||
| Junior sub. debentures | 12,742 | 345 | 5.46 | % | 10,199 | 254 | 5.02 | % | |||||||||
| Total | 894,977 | 1,848 | 0.42 | % | 821,062 | 1,793 | 0.44 | % | |||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||
| Demand deposits | 274,598 | 255,455 | |||||||||||||||
| Other liabilities | 11,400 | 11,108 | |||||||||||||||
| Stockholders' equity | 103,571 | 106,901 | |||||||||||||||
| Total | $ | 1,284,546 | $ | 1,194,526 | |||||||||||||
| Net interest income | $ | 19,591 | $ | 20,051 | |||||||||||||
| Rate spread | 3.12 | % | 3.42 | % | |||||||||||||
| Net yield on interest-earning assets | 3.23 | % | 3.55 | % | |||||||||||||
| (1) Nonaccrual loans are included in the daily average loan balances outstanding. | |||||||||||||||||
| (2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a tax rate of 21%. | |||||||||||||||||
Investor Relations Contact
PSB Holdings, Inc.
1905 Stewart Avenue
Wausau, WI 54401
888.929.9902
InvestorRelations@bankpeoples.com
