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PSB Holdings, Inc. Reports First Quarter 2024 Earnings of $0.39 Per Share, Tangible Net Book Value Per Share Up 8% In Past Year

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PSB Holdings, Inc. reported first quarter 2024 earnings of $0.39 per share, with tangible net book value per share up 8% in the past year. Net interest income declined, non-interest income decreased due to investment restructuring, and non-interest expenses increased. Total assets decreased, loans increased, and the allowance for credit losses slightly rose. Tangible book value per share increased to $24.21. Overall, PSB continues to focus on building shareholder value despite challenges like rising funding costs.
PSB Holdings, Inc. ha riportato un utile nel primo trimestre del 2024 di $0,39 per azione, con un aumento dell'8% del valore netto tangibile per azione nell'ultimo anno. I ricavi netti da interessi sono diminuiti, i ricavi non derivanti da interessi sono calati a causa della ristrutturazione degli investimenti e le spese non da interessi sono aumentate. Gli asset totali sono diminuiti, i prestiti sono aumentati e la riserva per perdite su crediti è lievemente cresciuta. Il valore contabile tangibile per azione è salito a $24,21. Nel complesso, PSB continua a concentrarsi sulla creazione di valore per gli azionisti nonostante le sfide come l'aumento dei costi di finanziamento.
PSB Holdings, Inc. informó ganancias del primer trimestre de 2024 de $0,39 por acción, con un valor neto tangible por acción que ha aumentado un 8% en el último año. El ingreso neto por intereses disminuyó, el ingreso por no intereses cayó debido a la reestructuración de inversiones y los gastos no por intereses aumentaron. El total de activos disminuyó, los préstamos aumentaron y la provisión para pérdidas crediticias se incrementó ligeramente. El valor contable tangible por acción aumentó a $24,21. En general, PSB continúa enfocándose en generar valor para los accionistas a pesar de desafíos como el aumento en los costos de financiación.
PSB Holdings, Inc.는 2024년 1분기에 주당 $0.39의 수익을 보고했으며, 지난해 대비 주당 유형 순자산 가치가 8% 증가했습니다. 순이자 수입은 줄었고, 투자 구조조정으로 인해 비이자 수입이 감소했으며, 비이자 비용이 증가했습니다. 총 자산은 감소했지만 대출은 증가했고, 신용 손실 충당금이 약간 증가했습니다. 유형 장부가치 주당 가치는 $24.21로 증가했습니다. 전반적으로, PSB는 자금 조달 비용 상승과 같은 도전에도 불구하고 주주 가치를 증대시키는 데 집중하고 있습니다.
PSB Holdings, Inc. a rapporté un bénéfice au premier trimestre 2024 de 0,39 $ par action, avec une valeur nette comptable tangible par action en hausse de 8 % sur l'année passée. Le revenu net d'intérêts a diminué, le revenu non lié aux intérêts a chuté en raison de la restructuration des investissements, et les dépenses non liées aux intérêts ont augmenté. Les actifs totaux ont diminué, les prêts ont augmenté et les provisions pour pertes sur crédits ont légèrement augmenté. La valeur comptable tangible par action a augmenté à 24,21 $. Globalement, PSB continue de se concentrer sur la création de valeur pour les actionnaires malgré des défis tels que l'augmentation des coûts de financement.
PSB Holdings, Inc. meldete für das erste Quartal 2024 einen Gewinn von 0,39 $ pro Aktie, wobei der greifbare Netto-Buchwert pro Aktie im letzten Jahr um 8 % gestiegen ist. Die Nettozinsen nahmen ab, das nichtzinsabhängige Einkommen sank aufgrund von Umstrukturierungen der Investitionen und die nichtzinsabhängigen Ausgaben stiegen. Die Gesamtaktiva verringerten sich, die Darlehen nahmen zu und die Rückstellungen für Kreditverluste stiegen leicht an. Der greifbare Buchwert pro Aktie erhöhte sich auf 24,21 $. Insgesamt bleibt PSB trotz Herausforderungen wie steigenden Finanzierungskosten darauf fokussiert, den Aktionärswert zu steigern.
Positive
  • Tangible net book value per share increased by 8% in the past year to $24.21.
  • Net interest income declined to $9.3 million for the first quarter of 2024.
  • Non-interest income decreased slightly to $1.04 million due to investment restructuring.
  • Non-interest expenses increased to $8.3 million for the first quarter of 2024.
  • Total assets decreased by $5.5 million to $1.42 billion at March 31, 2024.
  • Loans increased by $2.9 million in the first quarter of 2024.
  • The allowance for credit losses slightly increased to 1.14% of gross loans.
  • Tangible stockholder equity as a percent of total tangible assets was 7.60% at March 31, 2024.
  • Tangible net book value per common share increased by $1.78 to $24.21 at March 31, 2024.
  • Total deposits decreased to $1.11 billion at March 31, 2024.
  • FHLB advances rose to $158.3 million at March 31, 2024.
  • Return on tangible common equity was 6.57% for the first quarter of 2024.
Negative
  • Net interest income declined due to rising deposit and FHLB borrowing costs.
  • Non-interest income decreased due to a loss on the sale of investment securities.
  • Non-interest expenses increased mainly due to annual salary increases and benefit costs.
  • Total assets decreased by $5.5 million, reflecting lower cash and cash equivalents.
  • Non-performing assets increased to 0.83% of total assets at March 31, 2024, due to a loan in the timber industry.
  • Total deposits decreased, with a decline in uninsured deposits.
  • The overall cost of deposits rose to 2.14% for the first quarter ended March 31, 2024.
  • FHLB advance costs increased, affecting net interest margin.

WAUSAU, Wis., April 22, 2024 (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, 2024 of $0.39 per common share on net income of $1.6 million, compared to $0.55 per common share on net income of $2.3 million during the fourth quarter ending December 31, 2023, and $0.67 per common share on net income of $2.9 million during the first quarter ending March 31, 2023.

PSB’s first quarter 2024 operating results reflected the following changes from the fourth quarter of 2023: (1) lower net interest income as deposit and FHLB borrowing costs rose faster than interest income on loans; (2) lower non-interest income due primarily to the sale of investment securities at a loss with the proceeds reinvested into higher yielding investments; (3) higher non-interest expense related to annual salary increases in the first quarter and a reduction in vesting of incentives and benefits recorded in the prior quarter; (4) stronger capital ratios supported by additional earnings and slightly lower total assets; and (6) an increase in non-performing assets related to one borrower in the timber industry impacted by weather conditions and economic stress in that industry.

“We continue to focus on building shareholder value in a challenging environment, with common tangible book value increasing to $24.21 per share and stronger than expected loan growth prospects looking forward. However, rising funding costs remain a challenge. While new loan origination coupons have risen in the first quarter, the cost of new FHLB borrowings and continued rate increases in our existing deposits rose faster than asset yields as a whole,” stated Scott Cattanach, President and CEO.

March 31, 2024, Highlights:

  • Net interest income declined to $9.3 million for the quarter ended March 31, 2024, from $9.6 million for the quarter ended December 31, 2023, as increases in asset and loan yields were offset by increases in funding costs.

  • Tangible book value per common share increased to $24.21 at March 31, 2024, compared to $23.84 one quarter earlier and $22.43 at March 31, 2023. During the first quarter ended March 31, 2024, tangible book value per share was positively influenced by net income, intangible asset amortization, and stock repurchase activity.

  • Loans increased $2.9 million in the first quarter ended March 31, 2024, to $1.08 billion. Allowance for credit losses increased to 1.14% of gross loans.

  • Return on tangible common equity was 6.57% for the quarter ended March 31, 2024, compared to 9.64% the prior quarter and 12.63% one year earlier.

  • Noninterest income was $1.0 million for the quarter ended March 31, 2024, compared to $1.1 million the prior quarter. The current quarter reflected a slightly larger loss on the sale of investment securities as the Company continues to reposition the investment portfolio into higher yielding investments.

  • Noninterest expenses increased $967,000 in the first quarter of 2024, to $8.3 million from $7.4 million the prior quarter. The increase reflected scheduled salary increases and costs associated with vesting of other benefits. December 2023 quarterly salary costs were lowered by adjustments to post retirement and incentive accruals.   March 2024 quarterly salaries and employee benefits expense was 2.3% greater than March 2023 quarterly salaries and employee benefits.

Balance Sheet and Asset Quality Review

Total assets decreased $5.5 million to $1.42 billion at March 31, 2024. Cash and cash equivalents decreased $11.9 million, to $15.9 million at March 31, 2024, compared to $27.8 million the previous quarter. The lower cash and cash equivalent level primarily reflects proceeds used to fund higher yielding loans and investments. Investment securities available for sale increased $1.5 million to $165.6 million at March 31, 2024, from $164.0 million one quarter earlier. During the first quarter, $6.3 million available for sale securities were sold with the proceeds reinvested into higher yielding investments. Total collateralized liquidity available to meet cash demands was approximately $396 million at March 31, 2024, with an additional $317 million that could be raised in a short time frame from the brokered CDs market.

Total loans receivable increased $2.9 million to $1.08 billion at March 31, 2024 due primarily to draw downs of prior quarter loans in process, although gross loans outstanding declined $7.4 million. Commercial real estate loans decreased $8.2 million to $609.6 million at March 31, 2024, from $617.9 million the prior quarter. Commercial non-real estate loans decreased $1.3 million to $159.7 million at March 31, 2024, from $161.0 million one quarter earlier. Residential real estate loans increased $1.6 million from the prior quarter to $339.8 million from $338.2 million. The loan portfolio remains well diversified with commercial real estate loans totaling 54.7% of gross loans followed by residential real estate loans at 30.5% of gross loans, commercial non-real estate loans at 14.3% and consumer loans at 0.4%.

The allowance for credit losses increased slightly to 1.14% of gross loans at March 31, 2024, from 1.13% the prior quarter. Annualized net charge-offs to average loans were zero for the last three quarters ending March 31, 2024, compared to net recoveries of 0.02% one year earlier. Non-performing assets increased to 0.83% of total assets at March 31, 2024, due primarily to the addition of a $5.1 million loan to a borrower in the timber industry. Specific reserves have been established on the loan relationship for potential losses. For the fifth consecutive quarter, the Bank did not own any foreclosed real estate.

Total deposits decreased $28.5 million to $1.11 billion at March 31, 2024, from $1.14 billion at December 31, 2023. The decline in deposits reflects a pay down of $9.5 million in maturing brokered deposits and national CDs and a $22.2 million decline in uninsured deposits. Insured core and time deposits increased $3.2 million during the first quarter.

The composition of deposits continued to change during the first quarter of 2024 as customers seek higher deposit rates. At March 31, 2024, money market deposits and retail time deposits increased to 41.6% of deposits, compared to 40.6% at December 31, 2023. Uninsured and uncollateralized deposits declined to 19.3% of total deposits at March 31, 2024, from 20.9% of total deposits at December 31, 2023.
FHLB advances increased to $158.3 million at March 31, 2024, compared to $134.0 million at December 31, 2023. FHLB advances were used to fund repayment of certain brokered deposit maturities and supplement local deposit changes.

Tangible stockholder equity as a percent of total tangible assets was 7.60% at March 31, 2024, compared to 7.49% at December 31, 2023, and 7.54% at March 31, 2023.

Tangible net book value per common share increased $1.78, to $24.21, at March 31, 2024, compared to $22.43 one year earlier, an increase of 7.9%. Relative to the prior quarter, tangible net book value per common share increased $0.37 due to continued earnings. New security purchases with higher yields helped offset an increase in national market interest rates that lowered the value of the securities portfolio during the first quarter. The accumulated other comprehensive loss on the investment portfolio was $20.8 million at March 31, 2024, compared to $20.7 million one quarter earlier.

Operations Review

Net interest income declined to $9.3 million (on a net margin of 2.80%) for the first quarter of 2024 from $9.6 million (on a net margin of 2.88%) for the fourth quarter of 2023, and $9.9 million (on a net margin of 3.21%) for the first quarter of 2023. Earning asset yields increased 13 basis points to 5.12% during the first quarter of 2024 from 4.99% during the fourth quarter of 2023, while interest bearing deposit and borrowing costs increased 21 basis points to 3.00% compared to 2.79% during the fourth quarter of 2023.

The increase in earning asset yields was primarily due to higher yields on loan originations and renewals during the quarter. Partially offsetting the increased yield on earning assets during the quarter was the loss of interest income of approximately $114,000 on a newly classified non-performing loan. Taxable security yields were 2.80% for the quarter ended March 31, 2024, compared to 2.72% for the quarter ended December 31, 2023, up 8 basis points. Loan yields increased during the first quarter to 5.59% from 5.43% for the fourth quarter of 2023, up 16 basis points as loans repriced to higher market rates and increased credit spreads.

Rising deposit costs for savings and demand deposits, money market deposits, time deposits and FHLB advances were responsible for the rise in the Bank’s cost of funds. Additionally, the Company accepted an increase in $26.0 million of additional seasonal high yield municipal average deposits during the first quarter, which accelerated the overall rising cost of deposits during the quarter. The municipal deposits are expected to be drawn down during the second quarter. The overall cost of all deposits was 2.14% for the quarter ended March 31, 2024, compared to 1.91% the prior quarter, up 23 basis points. FHLB advance costs rose to 4.08% during the first quarter ended March 31, 2024, from 4.01% the prior quarter, and greater use of FHLB advance funding lowered net interest margin.

Total noninterest income decreased slightly for the first quarter of 2024 to $1.04 million, from $1.10 million for the fourth quarter of 2023, due primarily to investment restructuring activity with a loss on the sale of investment securities during the first quarter of $495,000 compared to a loss of $297,000 in the fourth quarter of 2023. Mortgage banking income increased by $61,000, or 24.6%, to $308,000 in the March 2024 quarter. At March 31, 2024, the Bank serviced $366.6 million in secondary market residential mortgage loans for others which provides fee income.

Noninterest expenses increased to $8.3 million for the first quarter of 2024, compared to $7.4 million for the fourth quarter of 2023. The fourth quarter of 2023 included lower salary and benefit expenses due to a recovery of post-retirement benefits and incentive accruals. The first quarter ended March 31, 2024, also reflected higher salary and benefit expenses due to annual salary increases and costs associated with various benefits.

Taxes decreased $709,000 during the first quarter to $169,000 from $878,000 one quarter earlier. The decrease reflects lower pre-tax income, the relative value of tax exempt income assets, and the benefit related to a Wisconsin state tax change that exempts certain loan interest income effectively eliminating Wisconsin tax expense.

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 eleven full-service banking locations in Marathon, Oneida, Vilas, Portage, Milwaukee and Waukesha counties and a loan production office in Dane County. 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. 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, 2024, September 30, June 30, and March 31, 2023, unaudited, December 31, 2023 derived from audited financial statements
      
 Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,
(dollars in thousands, except per share data) 2024  2023  2023  2023  2023 
      
Assets     
      
Cash and due from banks$13,340 $20,887 $12,881 $27,409 $13,336 
Interest-bearing deposits 105  1,431  668  892  538 
Federal funds sold 2,439  5,462  7,764  16,138  25,766 
      
Cash and cash equivalents 15,884  27,780  21,313  44,439  39,640 
Securities available for sale (at fair value) 165,566  164,024  160,883  167,382  190,738 
Securities held to maturity (fair values of $81,234, $82,514, $75,236, $81,489 and    
  $82,610, respectively 87,104  87,081  86,908  87,335  87,889 
Equity securities 1,474  1,474  2,273  2,178  2,070 
Loans held for sale 865  230  971  151  - 
Loans receivable, net (allowance for credit losses of $12,494, $12,302, $12,267,    
  $11,922 and $11,593, respectively 1,081,394  1,078,475  1,098,019  1,048,322  973,270 
Accrued interest receivable 5,467  5,136  4,716  4,274  4,062 
Foreclosed assets -  -  -  -  - 
Premises and equipment, net 13,427  13,098  13,242  13,256  13,406 
Mortgage servicing rights, net 1,657  1,664  1,684  1,666  1,682 
Federal Home Loan Bank stock (at cost) 7,006  6,373  6,373  6,359  4,620 
Cash surrender value of bank-owned life insurance 24,242  24,085  23,931  23,776  25,078 
Core deposit intangible 249  273  297  321  348 
Goodwill 2,541  2,541  2,541  2,541  2,541 
Other assets 11,682  11,866  14,094  14,933  14,444 
      
TOTAL ASSETS$1,418,558 $1,424,100 $1,437,245 $1,416,933 $1,359,788 
      
Liabilities     
      
Non-interest-bearing deposits$247,608 $266,829 $288,765 $282,153 $267,836 
Interest-bearing deposits 865,744  874,973  883,474  860,981  839,757 
      
   Total deposits 1,113,352  1,141,802  1,172,239  1,143,134  1,107,593 
      
Federal Home Loan Bank advances 158,250  134,000  128,000  133,000  113,000 
Other borrowings 8,096  8,058  5,660  5,730  5,033 
Senior subordinated notes 4,776  4,774  4,772  4,771  4,769 
Junior subordinated debentures 12,947  12,921  12,896  12,870  12,844 
Allowance for credit losses on unfunded commitments 477  577  512  712  762 
Accrued expenses and other liabilities 10,247  12,681  10,258  11,783  10,576 
      
   Total liabilities 1,308,145  1,314,813  1,334,337  1,312,000  1,254,577 
      
Stockholders' equity     
      
Preferred stock - no par value:     
   Authorized - 30,000 shares; no shares issued or outstanding     
   Outstanding - 7,200 shares, respectively 7,200  7,200  7,200  7,200  7,200 
Common stock - no par value with a stated value of $1.00 per share:     
   Authorized - 18,000,000 shares; Issued - 5,490,798 shares     
   Outstanding - 4,147,649, 4,164,735, 4,174,197, 4,190,252 and     
     4,241,501 shares, respectively 1,830  1,830  1,830  1,830  1,830 
Additional paid-in capital 8,466  8,460  8,421  8,382  8,311 
Retained earnings 134,271  132,666  131,624  130,396  128,968 
Accumulated other comprehensive income (loss), net of tax (20,775) (20,689) (26,190) (23,240) (22,515)
Treasury stock, at cost - 1,343,149, 1,326,063, 1,316,601, 1,300,546 and     
  1,249,297 shares, respectively (20,579) (20,180) (19,977) (19,635) (18,583)
      
   Total stockholders' equity 110,413  109,287  102,908  104,933  105,211 
      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$1,418,558 $1,424,100 $1,437,245 $1,416,933 $1,359,788 
      



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) 2024  2023  2023 2023  2023  
          
Interest and dividend income:      
   Loans, including fees$15,109 $14,888 $14,263$12,709 $11,773  
   Securities:      
      Taxable 1,197  1,147  1,114 1,327  1,331  
      Tax-exempt 526  532  533 535  537  
   Other interest and dividends 343  320  238 145  148  
          
         Total interest and dividend income 17,175  16,887  16,148 14,716  13,789  
          
Interest expense:      
   Deposits 6,082  5,526  4,817 3,661  2,989  
   FHLB advances 1,450  1,349  1,321 1,200  547  
   Other borrowings 60  54  51 48  62  
   Senior subordinated notes 59  59  59 58  62  
   Junior subordinated debentures 251  254  255 242  234  
          
         Total interest expense 7,902  7,242  6,503 5,209  3,894  
          
Net interest income 9,273  9,645  9,645 9,507  9,895  
Provision for credit losses 95  100  150 100  100  
          
Net interest income after provision for credit losses    9,178  9,545  9,495 9,407  9,795  
          
Noninterest income:      
   Service fees 336  360  349 378  361  
   Mortgage banking income 308  247  345 311  325  
   Investment and insurance sales commissions 121  100  158 287  365  
   Net loss on sale of securities (495) (297) - (279) -  
   Increase in cash surrender value of life insurance    157  154  155 149  157  
   Life insurance death benefit -  -  - 533  -  
   Other noninterest income 617  540  675 605  742  
          
         Total noninterest income 1,044  1,104  1,682 1,984  1,950  
          
Noninterest expense:      
   Salaries and employee benefits 5,123  4,244  4,514 4,884  5,006  
   Occupancy and facilities 721  675  689 698  699  
   Loss (gain) on foreclosed assets -  1  - 4  (50) 
   Data processing and other office operations 1,022  1,001  953 951  880  
   Advertising and promotion 129  244  161 166  162  
   Core deposit intangible amortization 24  24  24 27  34  
   Other noninterest expenses 1,306  1,169  1,113 1,202  1,073  
          
        Total noninterest expense 8,325  7,358  7,454 7,932  7,804  
          
Income before provision for income taxes 1,897  3,291  3,723 3,459  3,941  
Provision for income taxes 169  878  2,374 652  941  
          
Net income$1,728 $2,413 $1,349$2,807 $3,000  
Preferred stock dividends declared$122 $122 $122$122 $122  
          
Net income available to common shareholders$1,606 $2,291 $1,227$2,685 $2,878  
Basic earnings per common share$0.39 $0.55 $0.29$0.64 $0.67  
Diluted earnings per common share$0.39 $0.55 $0.29$0.64 $0.67  
          



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:   2024  2023  2023  2023  2023 
         
 Interest income  $17,175 $16,887 $16,148 $14,716 $13,789 
 Interest expense  $7,902 $7,242 $6,503 $5,209 $3,894 
 Net interest income  $9,273 $9,645 $9,645 $9,507 $9,895 
 Provision for credit losses $95 $100 $150 $100 $100 
 Other noninterest income $1,044 $1,104 $1,682 $1,984 $1,950 
 Other noninterest expense $8,325 $7,358 $7,454 $7,932 $7,804 
 Net income available to common shareholders$1,606 $2,291 $1,227 $2,685 $2,878 
         
 Basic earnings per common share (3)$0.39 $0.55 $0.29 $0.64 $0.67 
 Diluted earnings per common share (3)$0.39 $0.55 $0.29 $0.64 $0.67 
 Dividends declared per common share (3)$- $0.30 $- $0.30 $- 
 Tangible net book value per common share (4)$24.21 $23.84 $22.25 $22.64 $22.43 
         
 Semi-annual dividend payout ratio n/a 38.14%n/a 27.38%n/a
 Average common shares outstanding 4,154,702  4,168,924  4,186,940  4,218,226  4,275,160 
         
         
Balance sheet - average balances:      
 Loans receivable, net of allowances for credit loss  $1,081,936 $1,081,851 $1,076,158 $1,000,349 $964,029 
 Assets  $1,429,437 $1,424,240 $1,425,522 $1,367,363 $1,336,511 
 Deposits  $1,138,010 $1,148,399 $1,149,624 $1,098,039 $1,124,091 
 Stockholders' equity  $109,473 $105,060 $105,745 $106,762 $103,406 
         
         
Performance ratios:       
 Return on average assets (1)  0.49% 0.67% 0.38% 0.82% 0.91%
 Return on average common stockholders' equity (1)   6.32% 9.29% 4.94% 10.82% 12.13%
 Return on average tangible common     
   stockholders' equity (1)(4)  6.57% 9.64% 5.17% 11.23% 12.63%
 Net loan charge-offs to average loans (1) 0.00% 0.00% 0.00% -0.07% -0.02%
 Nonperforming loans to gross loans  1.08% 0.54% 0.55% 0.60% 0.62%
 Nonperforming assets to total assets  0.83% 0.42% 0.42% 0.45% 0.45%
 Allowance for credit losses to gross loans 1.14% 1.13% 1.10% 1.12% 1.18%
 Nonperforming assets to tangible equity     
   plus the allowance for credit losses (4) 10.59% 5.38% 5.87% 5.96% 5.76%
 Net interest rate margin (1)(2)  2.80% 2.88% 2.88% 2.98% 3.21%
 Net interest rate spread (1)(2)  2.12% 2.20% 2.27% 2.46% 2.77%
 Service fee revenue as a percent of      
   average demand deposits (1)  0.54% 0.52% 0.50% 0.58% 0.52%
 Noninterest income as a percent      
   of gross revenue   5.73% 6.14% 9.43% 11.88% 12.39%
 Efficiency ratio (2)   78.93% 67.04% 64.58% 68.09% 65.02%
 Noninterest expenses to average assets (1) 2.34% 2.05% 2.07% 2.33% 2.37%
 Average stockholders' equity less accumulated     
   other comprehensive income (loss) to     
   average assets   8.98% 8.88% 9.00% 9.33% 9.32%
 Tangible equity to tangible assets (4) 7.60% 7.49% 6.98% 7.22% 7.54%
         
Stock price information:       
         
 High  $22.50 $22.30 $22.50 $21.38 $25.75 
 Low  $20.05 $20.10 $20.35 $19.75 $20.00 
 Last trade value at quarter-end $21.25 $22.11 $21.15 $20.35 $21.15 
         
(1) Annualized       
(2) The yield on federally 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 goodwill and core deposit intangibles.   



PSB Holdings, Inc.     
Consolidated Statements of Comprehensive Income    
         
    Quarter Ended
    Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,
(dollars in thousands - unaudited) 2024  2023  2023  2023  2023 
         
Net income$1,728 $2,413 $1,349 $2,807 $3,000 
         
Other comprehensive income, net of tax:     
         
 Unrealized gain (loss) on securities available    
  for sale (615) 5,278  (3,085) (1,186) 1,601 
         
 Reclassification adjustment for security     
  loss included in net income 391  280  -  220  - 
         
 Accretion of unrealized loss included in net     
  income on securties available for sale     
  deferred tax adjustment for Wisconsin     
  Act 19 (35) -  -  -  - 
         
 Amortization of unrealized loss included in net    
  income on securities available for sale     
  transferred to securities held to maturity 91  91  91  107  129 
         
 Unrealized gain (loss) on interest rate swap 123  (109) 79  172  (1)
         
 Reclassification adjustment of interest rate     
  swap settlements included in earnings (41) (39) (35) (38) (24)
         
         
Other comprehensive income (loss) (86) 5,501  (2,950) (725) 1,705 
         
Comprehensive income (loss)$1,642 $7,914 $(1,601)$2,082 $4,705 
         



PSB Holdings, Inc.     
Nonperforming Assets as of:     
 Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,
(dollars in thousands) 2024  2023  2023  2023  2023 
      
Nonaccrual loans (excluding restructured loans)$11,498 $5,596 $5,807 $6,000 $5,773 
Nonaccrual restructured loans 30  34  42  50  57 
Restructured loans not on nonaccrual 304  310  256  261  265 
Accruing loans past due 90 days or more -  -  -  -  - 
      
Total nonperforming loans 11,832  5,940  6,105  6,311  6,095 
Other real estate owned -  -  -  -  - 
      
Total nonperforming assets$11,832 $5,940 $6,105 $6,311 $6,095 
      
Nonperforming loans as a % of gross loans receivable 1.08% 0.54% 0.55% 0.60% 0.62%
Total nonperforming assets as a % of total assets 0.83% 0.42% 0.42% 0.45% 0.45%
Allowance for credit losses as a % of nonperforming loans 105.59% 207.10% 200.93% 188.91% 190.21%
      



PSB Holdings, Inc.  
Nonperforming Assets >= $500,000 net book value before specific reserves 
At March 31, 2024  
(dollars in thousands)  
  Gross
Collateral DescriptionAsset TypePrincipal
   
Real estate - Buffet Style RestaurantNonaccrual$2,611 
Real estate - Independent Auto RepairNonaccrual 611 
Real estate - DealershipNonaccrual 5,053 
   
   
Total listed nonperforming assets $8,275 
Total bank wide nonperforming assets $11,832 
Listed assets as a % of total nonperforming assets  70%
   



PSB Holding, Inc.      
Loan Composition by Collateral Type      
Quarter-ended (dollars in thousands)Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023 
       
Commercial:      
Commercial and instrustrial$118,821 $117,207 $138,299 $145,434 $133,427  
Agriculture 12,081  12,304  12,464  13,326  12,434  
Municipal 28,842  31,530  27,186  25,222  6,430  
       
Total Commercial 159,744  161,041  177,949  183,982  152,291  
       
Commercial Real Estate:      
Commercial real estate 546,257  536,209  539,488  490,657  469,395  
Construction and development 63,375  81,701  86,456  99,769  103,108  
       
Total Commercial Real Estate 609,632  617,910  625,944  590,426  572,503  
       
Residential real estate:      
Residential 274,300  274,453  274,632  274,692  261,415  
Construction and development 34,158  33,960  33,141  41,485  26,480  
HELOC 31,357  29,766  29,044  26,220  25,001  
       
Total Residential Real Estate 339,815  338,179  336,817  342,397  312,896  
       
Consumer installment 4,867  4,357  4,350  4,142  4,079  
       
Subtotals - Gross loans 1,114,058  1,121,487  1,145,060  1,120,947  1,041,769  
Loans in process of disbursement (20,839) (31,359) (35,404) (61,308) (57,448) 
       
Subtotals - Disbursed loans 1,093,219  1,090,128  1,109,656  1,059,639  984,321  
Net deferred loan costs 669  649  630  605  542  
Allowance for credit losses (12,494) (12,302) (12,267) (11,922) (11,593) 
       
Total loans receivable$1,081,394 $1,078,475 $1,098,019 $1,048,322 $973,270  
       



PSB Holding, Inc.              
Selected Commercial Real Estate Loans by Purpose
      
 Mar 31, Dec 31, Sept 30, June 30, Mar 31,
 (dollars in thousands) 2024   2023   2023   2023   2023 
               
 Total Exposure% of Portfolio (1) Total Exposure% of Portfolio (1) Total Exposure% of Portfolio (1) Total Exposure% of Portfolio (1) Total Exposure% of Portfolio (1)
Multi Family$142,00114.4% $132,38613.2% $133,46613.3% $119,57312.4% $121,55913.0%
Industrial and Warehousing 85,4098.6   83,8178.3   88,9068.9   84,0498.7   78,9348.5 
Retail 33,1773.4   35,4193.5   35,2813.5   34,0043.5   34,4273.7 
Hotels 35,1053.6   36,1003.6   31,8193.2   33,3293.5   31,0693.3 
Office 6,6550.7   6,7010.7   6,7460.7   8,3950.9   8,5440.9 
               
(1) Percentage of commercial and commercial real estate portfolio and commitments.       



PSB Holdings, Inc.          
Deposit Composition          
           
Insured and Collateralized DepositsMarch 31,December 31,September 30,June 30,March 31,
(dollars in thousands) 2024  2023  2023  2023  2023 
 $%$%$%$%$%
           
Non-interest bearing demand$199,07717.8%$197,57117.3%$209,13317.8%$201,35117.6%$205,35018.6%
Interest-bearing demand and savings 318,67228.7% 317,98427.8% 307,62026.3% 310,00627.1% 329,36429.7%
Money market deposits 143,16712.9% 142,88712.5% 135,91011.6% 126,85111.1% 128,57611.6%
Retail and local time deposits <= $250 148,40413.3% 149,14513.1% 144,73312.3% 140,57212.3% 136,09012.3%
           
Total core deposits 809,32072.7% 807,58770.7% 797,39668.0% 778,78068.1% 799,38072.2%
Retail and local time deposits > $250 24,5082.3% 23,0002.0% 22,7501.9% 20,2501.8% 17,0001.5%
Broker & national time deposits <= $250 2,2290.2% 3,4700.3% 3,2220.3% 3,9650.3% 5,9530.5%
Broker & national time deposits > $250 61,7525.5% 70,0206.1% 88,6147.6% 93,9568.2% 74,4856.8%
           
Totals$897,80980.7%$904,07779.1%$911,98277.8%$896,95178.4%$896,81881.0%
           
PSB Holdings, Inc.          
Deposit Composition          
           
Uninsured DepositsMarch 31,December 31,September 30,June 30,March 31,
(dollars in thousands) 2024  2023  2023  2023  2023 
 $%$%$%$%$%
           
Non-interest bearing demand$48,5324.4%$69,2586.1%$79,6326.8%$80,8027.1%$62,4865.6%
Interest-bearing demand and savings 20,5351.8% 20,3161.8% 22,8471.9% 22,6042.0% 24,8542.2%
Money market deposits 124,76611.2% 124,51810.9% 133,65311.4% 127,87111.2% 109,89410.0%
Retail and local time deposits <= $250 -0.0% -0.0% -0.0% -0.0% -0.0%
           
Total core deposits 193,83317.4% 214,09218.8% 236,13220.1% 231,27720.3% 197,23417.8%
Retail and local time deposits > $250 21,7101.9% 23,6332.1% 24,1202.1% 14,9061.3% 13,5411.2%
Broker & national time deposits <= $250 -0.0% -0.0% -0.0% -0.0% -0.0%
Broker & national time deposits > $250 -0.0% -0.0% -0.0% -0.0% -0.0%
           
Totals$215,54319.3%$237,72520.9%$260,25222.2%$246,18321.6%$210,77519.0%
           
           
PSB Holdings, Inc.          
Deposit Composition          
           
Total DepositsMarch 31,December 31,September 30,June 30,March 31,
(dollars in thousands) 2024  2023  2023  2023  2023 
 $%$%$%$%$%
           
Non-interest bearing demand$247,60922.2%$266,82923.4%$288,76524.7%$282,15324.7%$267,83624.2%
Interest-bearing demand and savings 339,20730.5% 338,30029.6% 330,46728.2% 332,61029.1% 354,21832.0%
Money market deposits 267,93324.1% 267,40523.4% 269,56322.8% 254,72222.3% 238,47021.5%
Retail and local time deposits <= $250 148,40413.3% 149,14513.1% 144,73812.4% 140,57212.3% 136,09012.3%
           
Total core deposits 1,003,15390.1% 1,021,67989.5% 1,033,53388.1% 1,010,05788.4% 996,61490.0%
Retail and local time deposits > $250 46,2184.2% 46,6334.1% 46,8704.0% 35,1563.1% 30,5412.8%
Broker & national time deposits <= $250 2,2290.2% 3,4700.3% 3,2220.3% 3,9650.3% 5,9530.5%
Broker & national time deposits > $250 61,7525.5% 70,0206.1% 88,6147.6% 93,9568.2% 74,4856.7%
           
Totals$1,113,352100.0%$1,141,802100.0%$1,172,239100.0%$1,143,134100.0%$1,107,593100.0%
           



PSB Holdings, Inc.
        
Average Balances ($000) and Interest Rates
      
(dollars in thousands)           
              
              
   Quarter ended March 31, 2024 Quarter ended December 31, 2023 Quarter ended March 31, 2023
   Average Yield / Average Yield / Average Yield /
   BalanceInterestRate BalanceInterestRate BalanceInterestRate
Assets            
Interest-earning assets:           
   Loans (1)(2)$1,094,321 $15,1995.59% $1,094,152 $14,9745.43% $976,395 $11,7884.90%
   Taxable securities 171,788  1,1972.80%  167,366  1,1472.72%  199,705  1,3312.70%
   Tax-exempt securities (2)   80,434  6663.33%  80,922  6733.30%  81,932  6803.37%
   FHLB stock 6,499  16510.21%  6,373  1589.84%  3,059  506.63%
   Other  12,885  1785.56%  11,846  1625.43%  9,024  984.40%
              
   Total (2)  1,365,927  17,4055.12%  1,360,659  17,1144.99%  1,270,115  13,9474.45%
              
Non-interest-earning assets:          
   Cash and due from banks   17,367     16,243     17,255   
   Premises and equipment,          
      net  13,183     13,243     13,332   
   Cash surrender value ins   24,144     23,990     24,982   
   Other assets 21,201     22,406     23,193   
   Allowance for credit           
      losses  (12,385)    (12,301)    (12,366)  
              
   Total $1,429,437     $1,424,240     $1,336,511    
              
Liabilities & stockholders' equity          
Interest-bearing liabilities:          
   Savings and demand           
      deposits$350,497 $1,6721.92% $327,036 $1,2961.57% $373,557 $1,0531.14%
   Money market deposits 274,186  1,8972.78%  272,087  1,8202.65%  225,624  8301.49%
   Time deposits 264,657  2,5133.82%  273,332  2,4103.50%  245,562  1,1061.83%
   FHLB borrowings 142,926  1,4504.08%  133,560  1,3494.01%  68,833  5473.22%
   Other borrowings 8,554  602.82%  6,999  543.06%  10,025  622.51%
Senior sub. notes   4,775  594.97%  4,773  594.90%  5,159  624.87%
   Junior sub. debentures 12,934  2517.81%  12,909  2547.81%  12,832  2347.40%
              
   Total  1,058,529  7,9023.00%  1,030,696  7,2422.79%  941,592  3,8941.68%
              
Non-interest-bearing liabilities:          
   Demand deposits 248,670     275,944     279,348   
   Other liabilities 12,765     12,540     12,208   
   Stockholders' equity 109,473     105,060     103,363   
              
   Total $1,429,437     $1,424,240     $1,336,511    
              
Net interest income $9,503   $9,872   $10,053 
Rate spread  2.12%   2.20%   2.77%
Net yield on interest-earning assets 2.80%   2.88%   3.21%
              
(1) Nonaccrual loans are included in the daily average loan balances outstanding.     
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%. 
              



   

 


FAQ

What were PSB Holdings, Inc.'s first quarter 2024 earnings per share?

PSB Holdings, Inc. reported first quarter 2024 earnings of $0.39 per share.

How much did tangible net book value per share increase by in the past year?

Tangible net book value per share increased by 8% in the past year to $24.21.

What caused the decrease in PSB's net interest income for the first quarter of 2024?

Net interest income declined as deposit and FHLB borrowing costs rose faster than interest income on loans.

Why did non-interest income decrease slightly for the first quarter of 2024?

Non-interest income decreased due to investment restructuring activity with a loss on the sale of investment securities.

What led to the increase in non-interest expenses for the first quarter of 2024?

Non-interest expenses increased mainly due to annual salary increases and costs associated with various benefits.

How did total assets change at PSB Holdings, Inc. as of March 31, 2024?

Total assets decreased by $5.5 million to $1.42 billion at March 31, 2024.

PSB HOLDINGS INC (WI)

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112.90M
4.45M
6.49%
Banks - Regional
Financial Services
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United States of America
Wausau