PSB Holdings, Inc. Reports First Quarter 2022 Earnings Increase of 5.8% Over Prior Quarter, to $3.3 Million, or $0.75 Per Share

Rhea-AI Summary

PSB Holdings, Inc. (OTCQX: PSBQ) reported first quarter 2022 earnings of $0.75 per share, with net income at $3.3 million, up from $3.1 million in the previous quarter but down from $3.9 million year-over-year. Key highlights include a rise in net interest income to $9.6 million and a drop in noninterest income to $2.0 million, largely due to reduced gains on mortgage loan sales. The bank's tangible book value decreased to $21.82 per share due to unrealized losses. Total assets fell to $1.27 billion, and total deposits decreased by $15.8 million.

Positive

• Earnings per share increased to $0.75 from $0.71 in the previous quarter.
• Net interest income grew to $9.6 million, benefiting from higher yields on loans.

Negative

• Net income decreased year-over-year from $3.9 million to $3.3 million.
• Total assets slightly declined to $1.27 billion from $1.3 billion.
• Tangible book value dropped to $21.82 per share, reflecting unrealized losses.

WAUSAU, Wis., April 25, 2022 (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, 2022 of $0.75 per share on net income of $3.3 million, compared to earnings of $0.71 per share on net income of $3.1 million during the fourth quarter ending December 31, 2021, and $0.87 per share on net income of $3.9 million during the first quarter ending March 31, 2021.

The Company’s first quarter 2022 operating results reflected the following changes from the fourth quarter of 2021: (1) higher net interest income due to higher yields on loans and investment securities; (2) lower salary and employee benefit expenses due to lower performance-based incentive payouts; and (3) lower noninterest income primarily due to lower gains on the sale of mortgage loans. Prior year March 2021 quarterly earnings were elevated by recognition of SBA PPP lending program origination fees which increased net income by $227,000, $208,000, and $1,128,000 in the March 2022, December 2021, and March 2021 quarters, respectively.

“We are beginning to see the impact of the pandemic on our operations fade as the stimulus provided through PPP lending is largely repaid, further deposit growth supported by PPP loan deposits and government checks are no longer being received, and higher long-term interest rates have suppressed mortgage loan refinance activity. We believe we have successfully managed our way through the difficult period and delivered returns on tangible equity of 12.8%, 10.9% and 12.0% for fiscal years 2019, 2020 and 2021. As we enter an environment with rising interest rates and elevated inflation, we believe we have positioned the Bank to continue to deliver above average returns as seen with the current quarter’s return on tangible equity of 12.9%,” stated Scott Cattanach, President and CEO.

March 31, 2022 Highlights:

• Net interest income increased to $9.6 million for the quarter ended March 31, 2022, compared to $9.2 million for the quarter ended December 31, 2021, and equal to the $9.6 million for the quarter ended March 31, 2021. The most recent quarter reflected slightly higher PPP related fee income of $313,000 compared to $287,000 for the quarter ended December 31, 2021, and $1.55 million for the quarter ended March 31, 2021.
  
• As was the case for the quarter ended December 31, 2021, loan loss provisions remained at zero for the quarter ended March 31, 2022, compared to $1.0 million for the quarter ended March 31, 2021.
  
• Noninterest expense decreased $165,000 for the first quarter of 2022, to $7.2 million from $7.4 million the prior quarter. The decrease primarily related to decreased salary and benefit costs associated with lower incentive compensation plan expense.
  
• Loans receivable remained at $876 million at March 31, 2022, despite a $11.6 million decline in PPP related loans during the most recent quarter, with $3.2 million of PPP related loans remaining at March 31, 2022.
  
• Tangible book value declined to $21.82 per share at March 31, 2022, due primarily to the recording of unrealized losses on the securities portfolio which were impacted by actions taken by the Federal Reserve to increase short-term interest rates and market expectations of future rate increases.
  

As shown in the table below during the first quarter of 2022, “impaired loans” decreased $9.3 million. The primary decrease in “impaired loans” relates to improvements seen in several large loans that resulted in the risk rating on these loans being upgraded.

Commercial, Commercial Real Estate, Construction & Development, Agricultural and Government Loans ($000s)
Risk Rating			12/2020		03/2021		06/2021		09/2021		12/2021		03/2022
Rating 1	"High Quality"	$	-	$	-	$	-	$	77	$	-	$	55
Rating 2	"Minimal Risk"		61,223		62,626		60,155		71,304		70,886		85,074
Rating 3	"Average Risk"		390,191		348,102		345,929		347,735		383,951		379,966
Rating 4	"Acceptable Risk"		175,400		209,407		209,728		226,501		222,641		227,759
Rating 5	"Watch Risk"		36,379		30,891		39,577		33,284		37,194		37,063
Rating 6	"Substandard Risk"		7,617		18,134		6,377		10,148		4,182		4,135
Rating 7	"Impaired Loans"		13,153		16,162		15,522		16,790		21,322		12,061
Totals		$	683,963	$	685,322	$	677,288	$	705,839	$	740,176	$	746,113
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 declined slightly to $1.27 billion at March 31, 2022, from $1.3 billion at December 31, 2021. Cash and cash equivalents have continued to trend down, post-acquisition of Waukesha Bankshares, Inc. in April 2021, declining $15.7 million to $37.8 million from $53.5 million one quarter earlier. Similarly, securities available for sale decreased $19.0 million to $289.7 million at March 31, 2022, from $308.7 million one quarter earlier. The decreased balance of investment securities largely reflects their lower fair value in today’s rising rate market.

Total loans receivable decreased slightly to $875.6 million at March 31, 2022, from $876.4 million at December 31, 2021. PPP loans declined from $14.8 million at December 31, 2021, to $3.2 million at March 31, 2022, while non-PPP loans increased from $861.6 million at December 31, 2021, to $872.4 million at March 31, 2022.

The allowance for loan losses increased to 1.39% of gross loans at March 31, 2022, from 1.38% the prior quarter and decreased from 1.40% of gross loans one year earlier. Annualized net charge-offs to average loans reflected a net recovery at 0.05% for the quarter ended March 31, 2022. Non-performing assets were 1.03% of total assets at March 31, 2022, compared to 1.06% at December 31, 2021, and 1.13% at March 31, 2021. At March 31, 2022, non-performing assets consisted of $6.5 million in non-accrual loans, $170,000 in non-accrual restructured loans, $5.2 million in restructured loans not on non-accrual and $1.1 million in foreclosed assets.

Total deposits decreased $15.8 million to $1.09 billion at March 31, 2022, compared to $1.11 billion at December 31, 2021, led by commercial related and seasonal municipal customer withdrawals. At March 31, 2022, interest-bearing demand and savings deposits accounted for 35.1% of total deposits, followed by noninterest-bearing demand deposits at 25.0%, money market deposits at 20.4%, and retail and local time deposits at 15.4%. Broker and national time deposits accounted for 4.1% of total deposits at March 31, 2022, versus 1.7% at December 31, 2021.

FHLB advances remained at $47.0 million at March 31, 2022, while other borrowings decreased $2.4 million to $4.3 million compared to $6.7 million the prior period and $18.6 million at March 31, 2021.

Operations Review

Net interest income increased to $9.6 million (on a net margin of 3.24%) for the first quarter of 2022, compared to $9.2 million (on a net margin of 3.01%) for the fourth quarter of 2021, and $9.6 million (on a net margin of 3.62%) for the first quarter of 2021. Earning asset yields increased 23 basis points to 3.51% during the first quarter of 2022, from 3.28% during the fourth quarter of 2021, while deposit and borrowing costs decreased 2 basis points on a smaller average balance to 0.37% from 0.39% over the same period. The increase in earning asset yields was due to higher yields on both loans and investment securities during the quarter ended March 31, 2022. Loan yields improved to 4.12% for the first quarter of 2022, from 4.02% for the fourth quarter of 2021. Taxable security yields increased to 1.42% for the quarter ended March 31, 2022, from 1.17% in the quarter ended December 31, 2021.

The cost of interest-bearing liabilities decreased during the quarter, largely reflecting the decline in the cost of time deposits. The overall cost of deposits was 0.16% for the quarter ended March 31, 2022, compared to 0.17% the prior quarter. Along with a further increase in asset yields, cost of deposits is expected to increase during 2022 as market interest rates move higher.

Total noninterest income decreased for the first quarter of 2022 to $2.0 million from $2.2 million for the fourth quarter of 2021, 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 activities, mortgage loan servicing income has increased due in part to greater aggregate income association with the longer than previously expected servicing life. At March 31, 2022, the bank was servicing $393 million in secondary market mortgage loans for others.

Noninterest expense decreased to $7.2 million for the first quarter of 2022, compared to $7.4 million for the fourth quarter of 2021. The fourth quarter of 2021 included increased salaries and employee benefit expenses related to severance expense and higher 2021 calendar year performance-based incentive expenses. Salary and employee benefit expenses were $4.4 million for the first quarter of 2022, compared to $4.7 million for the fourth quarter of 2021.

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, 2022, September 30, June 30, and March 31, 2021, unaudited, December 31, 2021 derived from audited financial statements
		Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(dollars in thousands, except per share data)			2022			2021			2021			2021			2021
Assets
Cash and due from banks		$	18,322		$	16,896		$	20,813		$	18,589		$	12,921
Interest-bearing deposits			5,158			6,579			1,044			906			985
Federal funds sold			14,356			30,068			43,637			52,643			16,027
Cash and cash equivalents			37,836			53,543			65,494			72,138			29,933
Securities available for sale (at fair value)			289,704			308,744			300,192			260,062			226,239
Equity securities			1,720			1,701			1,661			1,623			1,585
Bank certificates of deposit (at cost)			245			245			245			245			1,231
Loans held for sale			-			3,061			214			1,756			622
Loans receivable, net			875,588			876,337			874,524			863,254			829,964
Accrued interest receivable			3,219			3,256			3,273			3,299			3,335
Foreclosed assets			1,103			1,103			2,398			1,984			1,105
Premises and equipment, net			12,906			12,695			12,725			13,241			11,077
Mortgage servicing rights, net			1,770			1,714			1,702			1,696			1,732
Federal Home Loan Bank stock (at cost)			2,646			2,646			2,646			2,646			2,283
Cash surrender value of bank-owned life insurance			24,455			24,305			24,154			24,001			17,902
Core deposit intangible			487			534			581			629			-
Goodwill			2,541			2,541			2,541			2,541			113
Other assets			11,725			6,286			5,313			5,523			5,102
TOTAL ASSETS		$	1,265,945		$	1,298,711		$	1,297,663		$	1,254,638		$	1,132,223
Liabilities
Non-interest-bearing deposits		$	272,611		$	284,477		$	291,440		$	273,181		$	242,974
Interest-bearing deposits			816,794			820,763			791,601			758,445			682,877
Total deposits			1,089,405			1,105,240			1,083,041			1,031,626			925,851
Federal Home Loan Bank advances			47,000			47,000			62,000			67,000			62,000
Other borrowings			4,304			6,677			17,129			21,757			18,582
Senior subordinated notes			2,500			2,500			2,500			2,500			2,500
Junior subordinated debentures			12,742			12,717			12,691			12,666			7,732
Accrued expenses and other liabilities			10,208			13,315			10,143			11,103			9,918
Total liabilities			1,166,159			1,187,449			1,187,504			1,146,652			1,026,583
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 - 4,434,840, 4,440,329, 4,447,026, 4,454,922 and 4,454,922 shares, respectively			1,830			1,830			1,830			1,830			1,830
Additional paid-in capital			8,183			8,059			8,003			7,946			7,890
Retained earnings			117,957			114,627			112,502			108,863			107,751
Accumulated other comprehensive income (loss), net of tax			(14,097	)		628			1,530			2,869			1,691
Treasury stock, at cost - 1,055,958, 1,050,469, 1,043,772, 1,035,876 and 1,035,876 shares, respectively			(14,087	)		(13,882	)		(13,706	)		(13,522	)		(13,522	)
Total stockholders' equity			99,786			111,262			110,159			107,986			105,640
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,265,945		$	1,298,711		$	1,297,663		$	1,254,638		$	1,132,223

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)			2022			2021			2021			2021			2021
Interest and dividend income:
Loans, including fees		$	9,054		$	8,918		$	9,323		$	9,972		$	9,442
Securities:
Taxable			762			631			581			553			507
Tax-exempt			533			505			500			505			502
Other interest and dividends			42			31			45			40			31
Total interest and dividend income			10,391			10,085			10,449			11,070			10,482
Interest expense:
Deposits			443			476			404			485			547
FHLB advances			169			192			220			221			215
Other borrowings			2			4			9			8			7
Senior subordinated notes			28			29			28			28			28
Junior subordinated debentures			166			165			165			165			89
Total interest expense			808			866			826			907			886
Net interest income			9,583			9,219			9,623			10,163			9,596
Provision for loan losses			-			-			-			-			1,000
Net interest income after provision for loan losses			9,583			9,219			9,623			10,163			8,596
Noninterest income:
Service fees			388			382			379			347			332
Gain on sale of mortgage loans			277			451			494			663			1,152
Mortgage loan servicing, net			176			114			111			9			79
Investment and insurance sales commissions			456			500			426			465			595
Net gain on sale of securities			-			-			-			113			21
Increase in cash surrender value of life insurance			150			151			153			148			108
Other noninterest income			531			646			563			554			462
Total noninterest income			1,978			2,244			2,126			2,299			2,749
Noninterest expense:
Salaries and employee benefits			4,390			4,669			4,099			3,915			3,460
Occupancy and facilities			665			596			614			647			569
Loss (gain) on foreclosed assets			(6	)		(347	)		28			23			130
Data processing and other office operations			861			855			828			1,499			694
Advertising and promotion			152			155			199			322			79
Core deposit intangible amortization			47			47			47			31			2
Other noninterest expenses			1,083			1,382			1,131			3,170			1,266
Total noninterest expense			7,192			7,357			6,946			9,607			6,200
Income before provision for income taxes			4,369			4,106			4,803			2,855			5,145
Provision for income taxes			1,039			960			1,165			718			1,249
Net income		$	3,330		$	3,146		$	3,638		$	2,137		$	3,896
Basic earnings per share		$	0.75		$	0.71		$	0.82		$	0.48		$	0.88
Diluted earnings per share		$	0.75		$	0.71		$	0.82		$	0.48		$	0.87

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:			2022			2021			2021			2021			2021
Interest income		$	10,391		$	10,085		$	10,449		$	11,070		$	10,482
Interest expense		$	808		$	866		$	826		$	907		$	886
Net interest income		$	9,583		$	9,219		$	9,623		$	10,163		$	9,596
Provision for loan losses		$	-		$	-		$	-		$	-		$	1,000
Other noninterest income		$	1,978		$	2,244		$	2,126		$	2,299		$	2,749
Other noninterest expense		$	7,192		$	7,357		$	6,946		$	9,607		$	6,200
Net income		$	3,330		$	3,146		$	3,638		$	2,137		$	3,896
Basic earnings per share (3)		$	0.75		$	0.71		$	0.82		$	0.48		$	0.88
Diluted earnings per share (3)		$	0.75		$	0.71		$	0.82		$	0.48		$	0.87
Dividends declared per share (3)		$	-		$	0.23		$	-		$	0.23		$	-
Tangible net book value per share (4)		$	21.82		$	24.36		$	24.07		$	23.53		$	23.69
Semi-annual dividend payout ratio			n/a			15.05	%		n/a			17.04	%		n/a
Average common shares outstanding			4,433,375			4,445,465			4,450,755			4,454,922			4,454,334
Balance sheet - average balances:
Loans receivable, net of allowances for loss		$	878,979		$	870,151		$	862,555		$	891,886		$	827,595
Assets		$	1,278,565		$	1,295,780		$	1,292,369		$	1,251,738		$	1,132,905
Deposits		$	1,084,814		$	1,092,872		$	1,064,553		$	1,023,229		$	925,689
Stockholders' equity		$	108,803		$	112,089		$	110,388		$	105,932		$	105,868
Performance ratios:
Return on average assets (1)			1.06	%		0.96	%		1.12	%		0.68	%		1.39	%
Return on average stockholders' equity (1)			12.41	%		11.14	%		13.08	%		8.09	%		14.92	%
Return on average tangible stockholders' equity (1)(4)			12.90	%		11.58	%		13.59	%		8.39	%		14.95	%
Average stockholders' equity less accumulated other comprehensive income (loss) to average assets			8.99	%		8.57	%		8.39	%		8.27	%		9.10	%
Net loan charge-offs to average loans (1)			-0.05	%		-0.10	%		-0.08	%		0.00	%		0.01	%
Nonperforming loans to gross loans			1.34	%		1.42	%		1.43	%		1.31	%		1.39	%
Nonperforming assets to total assets			1.03	%		1.06	%		1.16	%		1.07	%		1.13	%
Allowance for loan losses to gross loans			1.39	%		1.38	%		1.35	%		1.35	%		1.40	%
Nonperforming assets to tangible equity plus the allowance for loan losses (4)			12.10	%		11.58	%		12.87	%		11.71	%		11.06	%
Net interest rate margin (1)(2)			3.24	%		3.01	%		3.15	%		3.48	%		3.62	%
Net interest rate spread (1)(2)			3.14	%		2.89	%		3.04	%		3.37	%		3.49	%
Service fee revenue as a percent of average demand deposits (1)			0.58	%		0.52	%		0.53	%		0.51	%		0.57	%
Noninterest income as a percent of gross revenue			15.99	%		18.20	%		16.91	%		17.20	%		20.78	%
Efficiency ratio (2)			61.40	%		63.37	%		58.40	%		76.20	%		49.64	%
Noninterest expenses to average assets (1)			2.28	%		2.25	%		2.13	%		3.08	%		2.22	%
Tangible equity to tangible assets			7.66	%		8.35	%		8.27	%		8.38	%		9.32	%
Stock price information:
High		$	26.45		$	27.00		$	26.50		$	26.50		$	25.94
Low		$	25.80		$	24.60		$	24.52		$	25.00		$	20.45
Last trade value at quarter-end		$	26.00		$	26.05		$	24.95		$	26.25		$	25.25
(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
		Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(dollars in thousands - unaudited)			2022			2021			2021			2021			2021
Net income		$	3,330		$	3,146		$	3,638		$	2,137		$	3,896
Other comprehensive income, net of tax:
Unrealized gain (loss) on securities available for sale			(14,847	)		(973	)		(1,374	)		1,224			(2,803	)
Reclassification adjustment for security gain included in net income			-			-			-			(83	)		(15	)
Unrealized gain (loss) on interest rate swap			85			31			(5	)		(4	)		13
Reclassification adjustment of interest rate swap settlements included in earnings			37			40			40			39			38
Other comprehensive income (loss)			(14,725	)		(902	)		(1,339	)		1,176			(2,767	)
Comprehensive income (loss)		$	(11,395	)	$	2,244		$	2,299		$	3,313		$	1,129

PSB Holdings, Inc.
Nonperforming Assets as of:
		Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(dollars in thousands)			2022			2021			2021			2021			2021
Nonaccrual loans (excluding restructured loans)		$	6,537		$	6,425		$	6,018		$	5,208		$	5,346
Nonaccrual restructured loans			170			1,000			1,526			1,062			1,090
Restructured loans not on nonaccrual			5,172			5,213			5,159			5,205			5,242
Accruing loans past due 90 days or more			-			-			-			-			-
Total nonperforming loans			11,879			12,638			12,703			11,475			11,678
Other real estate owned			1,103			1,103			2,398			1,984			1,105
Total nonperforming assets		$	12,982		$	13,741		$	15,101		$	13,459		$	12,783
Nonperforming loans as a % of gross loans receivable			1.34	%		1.42	%		1.43	%		1.31	%		1.39	%
Total nonperforming assets as a % of total assets			1.03	%		1.06	%		1.16	%		1.07	%		1.13	%
Allowance for loan losses as a % of nonperforming loans			103.89	%		96.71	%		94.51	%		103.06	%		101.23	%

PSB Holdings, Inc.
Nonperforming Assets >= $500,000 net book value before specific reserves
At March 31, 2022
(dollars in thousands)
			Gross			Specific
Collateral Description		Asset Type	Principal			Reserves
Real estate - Hotel		Restructured	$	4,706		$	38
Real estate - Buffet Style Restaurant		Nonaccrual		3,134			1,393
Real estate - Independent Auto Repair		Nonaccrual		905			136
Total listed nonperforming assets			$	8,745		$	1,567
Total bank wide nonperforming assets			$	12,982		$	1,870
Listed assets as a % of total nonperforming assets				67	%		84	%

PSB Holding, Inc.
Loan Composition by Purpose
Quarter-ended (dollars in thousands)		Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Residential real estate:
One to four family		$	168,083		$	168,584		$	166,728		$	169,456		$	136,242
HELOC loans			16,709			17,198			18,011			18,263			16,908
Residential construction & development			21,590			23,093			25,162			24,385			25,628
Residential vacant land			1,697			1,763			6,629			2,172			2,524
Total Residential real estate			208,079			210,638			216,530			214,276			181,302
Commercial/Agricultural real estate:
Owner occupied
Commercial real estate			208,271			202,416			203,509			202,767			194,514
SBA commercial real estate			2,530			1,568			1,140			1,164			1,445
Agriculture real estate			3,651			3,716			4,046			4,188			4,787
Construction and land development			26,111			22,380			17,705			6,460			4,121
Commercial vacant land			5,194			3,529			3,572			6,490			2,998
Total Owner occupied			245,757			233,609			229,972			221,069			207,865
Non-owner occupied
Commercial real estate			212,407			211,688			212,868			196,011			183,365
One to four family residential rental			56,305			52,437			49,542			47,097			31,914
SBA commercial real estate			-			1,010			682			703			718
Agricultural real estate			-			-			-			-			-
Construction and land development			23,080			25,899			29,618			30,057			31,362
Commercial vacant land			4,191			4,534			4,851			5,203			7,970
Total Non-owner occupied			295,983			295,568			297,561			279,071			255,329
Commercial/Agricultural non-real estate:
Municipal non-real estate			6,403			11,858			7,623			7,014			7,165
Commercial line			54,626			52,151			47,646			45,386			46,833
Other commercial non-real estate			64,260			61,115			54,481			55,002			49,246
SBA commercial non-real estate			6,068			17,527			25,933			47,245			89,603
Agricultural non-real estate			1,340			1,130			1,325			1,656			1,730
Total Commercial/Agr. non-real estate			132,697			143,781			137,008			156,303			194,577
Consumer non-real estate:
Consumer installment			4,201			4,054			4,369			4,399			3,191
Consumer line			486			480			477			436			498
Other consumer			118			117			125			130			123
Total Consumer non-real estate			4,805			4,651			4,971			4,965			3,812
Gross loans			887,321			888,247			886,042			875,684			842,885
Net deferred loan costs (fees)			423			107			(167	)		(738	)		(1,627	)
Overdrafts			185			205			654			134			528
Allowance for loan losses			(12,341	)		(12,222	)		(12,005	)		(11,826	)		(11,822	)
Total loans receivable		$	875,588		$	876,337		$	874,524		$	863,254		$	829,964

PSB Holdings, Inc.
Deposit Composition
		March 31,						December 31,						September 30,						June 30,						March 31,
(dollars in thousands)			2022						2021						2021						2021						2021
		$			%			$			%			$			%			$			%			$			%
Non-interest bearing demand		$	272,611		25.0	%		$	284,477		25.7	%		$	291,440		26.9	%		$	273,181		26.5	%		$	242,974		26.2	%
Interest-bearing demand and savings			382,829		35.1	%			413,522		37.4	%			388,725		35.9	%			366,563		35.4	%			329,100		35.6	%
Money market deposits			221,982		20.4	%			219,145		19.8	%			215,772		19.9	%			212,285		20.6	%			215,590		23.3	%
Retail and local time deposits <= $250			138,821		12.8	%			140,443		12.8	%			142,439		13.2	%			140,895		13.7	%			101,866		11.0	%
Total core deposits			1,016,243		93.3	%			1,057,587		95.7	%			1,038,376		95.9	%			992,924		96.2	%			889,530		96.1	%
Retail and local time deposits > $250			28,754		2.6	%			28,659		2.6	%			24,824		2.3	%			25,834		2.5	%			23,904		2.6	%
Broker & national time deposits <= $250			7,443		0.7	%			7,793		0.7	%			8,640		0.8	%			10,874		1.1	%			10,423		1.1	%
Broker & national time deposits > $250			36,965		3.4	%			11,201		1.0	%			11,201		1.0	%			1,994		0.2	%			1,994		0.2	%
Totals		$	1,089,405		100.0	%		$	1,105,240		100.0	%		$	1,083,041		100.0	%		$	1,031,626		100.0	%		$	925,851		100.0	%

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
		Quarter ended March 31, 2022								Quarter ended December 31, 2021								Quarter ended March 31, 2021
		Average					Yield /			Average					Yield /			Average					Yield /
		Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)		$	891,257		$	9,065	4.12	%		$	882,157		$	8,930	4.02	%		$	838,781		$	9,454	4.57	%
Taxable securities			216,965			762	1.42	%			214,626			631	1.17	%			142,539			507	1.44	%
Tax-exempt securities (2)			87,719			675	3.12	%			83,518			639	3.04	%			84,219			635	3.06	%
FHLB stock			2,646			34	5.21	%			2,646			18	2.70	%			2,283			21	3.73	%
Other			20,448			8	0.16	%			53,098			13	0.10	%			22,390			10	0.18	%
Total (2)			1,219,035			10,544	3.51	%			1,236,045			10,231	3.28	%			1,090,212			10,627	3.95	%
Non-interest-earning assets:
Cash and due from banks			17,996								19,967								14,248
Premises and equipment, net			12,732								12,699								11,009
Cash surrender value ins			24,361								24,216								17,840
Other assets			16,719								14,859								10,782
Allowance for loan losses			(12,278	)							(12,006	)							(11,186	)
Total		$	1,278,565							$	1,295,780							$	1,132,905
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand deposits		$	396,261		$	69	0.07	%		$	388,549		$	76	0.08	%		$	333,340		$	65	0.08	%
Money market deposits			218,367			89	0.17	%			222,399			93	0.17	%			217,618			118	0.22	%
Time deposits			198,431			285	0.58	%			188,301			307	0.65	%			138,773			364	1.06	%
FHLB borrowings			51,200			169	1.34	%			52,705			192	1.45	%			62,000			215	1.41	%
Other borrowings			6,452			2	0.13	%			11,585			4	0.14	%			18,964			7	0.15	%
Senior sub. notes			2,500			28	4.54	%			2,500			29	4.60	%			2,500			28	4.54	%
Junior sub. debentures			12,730			166	5.29	%			12,704			165	5.15	%			7,732			89	4.67	%
Total			885,941			808	0.37	%			878,743			866	0.39	%			780,927			886	0.46	%
Non-interest-bearing liabilities:
Demand deposits			271,755								293,623								235,958
Other liabilities			12,066								11,325								10,152
Stockholders' equity			108,803								112,089								105,868
Total		$	1,278,565							$	1,295,780							$	1,132,905
Net interest income					$	9,736							$	9,365							$	9,741
Rate spread							3.14	%							2.89	%							3.49	%
Net yield on interest-earning assets							3.24	%							3.01	%							3.62	%
(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%.

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

FAQ

What were PSB Holdings’ earnings per share in the first quarter of 2022?

PSB Holdings reported an earnings per share of $0.75 for the first quarter of 2022.

How did PSB Holdings’ net income change in the first quarter of 2022?

Net income for the first quarter of 2022 was $3.3 million, compared to $3.9 million in the first quarter of 2021.

What factors influenced PSB Holdings’ first quarter financial results?

Increased net interest income and lower noninterest income due to reduced gains on mortgage loans influenced the financial results.

What is the current tangible book value of PSB Holdings?

As of March 31, 2022, the tangible book value of PSB Holdings is $21.82 per share.