PSB Holdings, Inc. Reports Fourth Quarter 2022 Earnings of $0.80 Per Share and Record Fiscal 2022 Earnings of $3.07 Per Share

Rhea-AI Summary

PSB Holdings, Inc. (OTCQX: PSBQ) reported steady fourth-quarter earnings for 2022, maintaining an EPS of $0.80 and net income of $3.5 million, consistent with the previous quarter and a notable increase from $0.71 per share year-over-year. For the fiscal year, earnings rose to a record level of $3.07 per share. Key highlights include a 2.7% growth in loans, increased net interest income to $10.6 million, and improved asset quality with non-performing assets dropping to 0.48%. The company increased capital and liquidity to support future growth despite anticipated challenges due to inflation. PSB also initiated a share repurchase program, buying back 55,113 shares by quarter-end.

Positive

• Record fiscal 2022 earnings of $3.07 per share, up from $2.88 per share in fiscal 2021.
• 4Q 2022 net interest income rose to $10.6 million, a boost from $10.1 million in 3Q 2022.
• Loan growth of 2.7% in 4Q 2022, driven by adjustable-rate residential mortgages.
• No loan loss provisions recorded due to strong credit quality.

Negative

• Increased salary and employee benefit expenses due to inflationary pressures.
• Potential slowdown in loan originations anticipated due to rising interest rates.

WAUSAU, Wis., Jan. 25, 2023 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported fourth quarter earnings ending December 31, 2022 of $0.80 per share on net income of $3.5 million, compared to $0.80 per share on net income of $3.5 million during the third quarter ending September 30, 2022, and $0.71 per share on net income of $3.1 million during the fourth quarter ending December 31, 2021. Fiscal 2022 earnings increased to a record $3.07 per share from $2.88 per share for fiscal 2021.

PSB’s fourth quarter 2022 operating results reflected the following changes from the third quarter of 2022: (1) higher net interest income due to increased allocation to higher yielding loans and investments; (2) higher noninterest income primarily due to an increase in investment sales commissions; and (3) higher salary and employee benefit expenses due to inflationary pressures and funding of year-end benefit plans. Loans grew 2.7% during the quarter ending December 31, 2022, reflecting primarily growth in adjustable-rate residential mortgage loans and increased commercial and industrial loans and lines of credit.

“Our record fiscal 2022 earnings reflect the benefits of increased net interest income and improved efficiency over 2021 which included costs related to the acquisition of Sunset Bank. Improvements in already strong credit quality required no provision for loan losses which offset a significant reduction in residential mortgage banking income. Despite ongoing challenges in 2023 as the Federal Reserve combats inflation, we are well positioned to take advantage of new opportunities. During the fourth quarter, we increased our capital and liquidity positions to facilitate additional growth and manage capital,” stated Scott Cattanach, President and CEO.

December 31, 2022 Highlights:

• Net interest income increased to $10.6 million for the quarter ended December 31, 2022, compared to $10.1 million for the quarter ended September 30, 2022, and $9.2 million for the quarter ended December 31, 2021.
  
  
• Noninterest income increased to $1.8 million for the quarter ended December 31, 2022, from $1.7 million the previous quarter. The increase largely reflected additional investment sales commissions.
  
  
• Noninterest expense increased $499,000 for the fourth quarter of 2022, to $7.7 million from $7.2 million the prior quarter. The increase was primarily related to higher salary and benefit costs.
  
  
• Loans receivable increased $25 million, or 2.7%, to $962 million at December 31, 2022 from $937 million one quarter earlier. For the fiscal year ended December 31, 2022, loans increased $85.5 million, or 9.8%.
  
  
• Asset quality improved and continued to remain strong. At December 31, 2022, non-performing assets declined $4.8 million to 0.48% of total assets from 1.06% one year earlier. No loan loss provisions were recorded during 2022 due to strong credit quality.
  
  
• Tangible book value per common share increased to $21.37 at December 31, 2022 from $20.83 one quarter earlier. Return on tangible common equity was 15.12% for the quarter ended December 31, 2022, compared to 14.58% the prior quarter.
  
  
• On December 19, 2022, PSB announced that it has adopted a program to repurchase up to 5% of outstanding shares of its common stock. Through the end of the fourth quarter of 2022, PSB repurchased 55,113 shares as part of this plan.
  

Balance Sheet and Asset Quality Review

Total assets increased slightly to $1.34 billion at December 31, 2022, from $1.32 billion at September 30, 2022. Cash and cash equivalents decreased $11.3 million to $29.4 million from $40.7 million during the quarter, while investment securities increased $3.6 million to $280.0 million at December 31, 2022, from $276.4 million one quarter earlier.

Total loans receivable increased $25.2 million to $961.9 million at December 31, 2022, from $936.7 million at September 30, 2022. New one-to-four family loans were added to the portfolio as well as commercial loans which reflected strong origination activity. Management believes loan originations could slow in coming quarters in response to lower customer demand as a result of cumulative short-term interest rate increases by the Federal Reserve to slow inflation.

The allowance for loan losses decreased slightly to 1.26% of gross loans at December 31, 2022, from 1.30% the prior quarter and 1.38% of gross loans one year earlier. Annualized net charge-offs to average loans were minimal for the quarter ended December 31, 2022 at 0.03%. Non-performing assets declined to 0.48% of total assets at December 31, 2022, compared to 0.85% at September 30, 2022, and 1.06% at December 31, 2021. At December 31, 2022, non-performing assets consisted of $5.9 million in non-accrual loans, $62,000 in non-accrual restructured loans, $270,000 in restructured loans not on non-accrual and $160,000 in foreclosed assets. During the fourth quarter, an accruing restructured loan totaling $4.6 million was upgraded to performing from impaired status.

Total deposits remained flat at $1.15 billion at December 31, 2022 and the composition of deposits changed slightly from the prior quarter. At December 31, 2022, interest-bearing demand and savings deposits increased to 34.5% of total deposits from 32.9% of total deposits the prior quarter, while noninterest-bearing demand deposits decreased to 25.4% from 26.0% at September 30, 2022. Money market deposits decreased to 18.8% of total deposits at December 31, 2022 from 19.9%, and retail and local time deposits increased to 13.5% from 13.4% at September 30, 2022. Broker and national time deposits remained at 7.8% of total deposits at December 31, 2022.

FHLB advances increased to $43.0 million at December 31, 2022, compared to $40.0 million at September 30, 2022, while other borrowings increased to $13.0 million at December 31, 2022 compared to $10.4 million at September 30, 2022.

Senior subordinated notes increased to $5.5 million at December 31, 2022 from $2.5 million at September 30, 2022. The increased senior subordinated notes reflect the issuance of new subordinated debt of $4.8 million on November 1, 2022, which included $1.8 million of refinanced existing notes.

Tangible stockholder equity as a percent of total tangible assets increased to 7.42% at December 31, 2022, from 6.98% at September 30, 2022. On November 1, 2022, PSB sold $7.2 million of non-cumulative 6.75% preferred stock. PSB has the option to redeem the preferred stock in whole or in part beginning November 1, 2027.

Tangible book value per common share was $21.37 at December 31, 2022, compared to $20.83 per common share one quarter earlier. Relative to the prior quarter, accumulated other comprehensive loss was unchanged with the unrealized loss on securities available for sale remaining at $24.2 million. At December 31, 2022, fair values on all securities were 12.3% less than amortized purchase cost.

Operations Review

Net interest income increased to $10.6 million (on a net margin of 3.41%) for the fourth quarter of 2022, compared to $10.1 million (on a net margin of 3.24%) for the third quarter of 2022, and $9.2 million (on a net margin of 3.01%) for the fourth quarter of 2021. Earning asset yields increased 40 basis points to 4.21% during the fourth quarter of 2022, from 3.81% during the third quarter of 2022, while deposit and borrowing costs increased 34 basis points to 1.11% compared to 0.77% during the third quarter of 2022.

The increase in earning asset yields was partially due to higher yields on investment securities during the quarter ended December 31, 2022. Taxable security yields increased to 2.45% for the quarter ended December 31, 2022, from 1.94% in the quarter ended September 30, 2022. Loan yields also increased during the fourth quarter to 4.67% from 4.30% for the third quarter of 2022 as loans repriced to higher indices from Federal Reserve and market rate increases and new loans were added to the portfolio. Along with a further increase in asset yields, funding costs are expected to increase during the Federal Reserve’s increasing interest rate posture and as existing loans, securities, and deposits reprice to higher levels.

Total noninterest income increased for the fourth quarter of 2022 to $1.8 million from $1.7 million for the third quarter of 2022, due primarily to an increase in investment sales commissions. Mortgage loan servicing income also increased slightly during the fourth quarter, though the increase was mostly offset by a reduction in gains on the sale of mortgage loans. At December 31, 2022, the Bank serviced $382.4 million in secondary market residential mortgage loans for others.

Noninterest expense increased to $7.7 million for the fourth quarter of 2022, compared to $7.2 million for the third quarter of 2022. The fourth quarter of 2022 included higher salaries and employee benefit expenses. Salary and employee benefit expenses were $4.7 million for the fourth quarter of 2022, compared to $4.3 million for the third 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
December 31, September 30, June 30, and March 31, 2022, unaudited, December 31, 2021 derived from audited financial statements
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
(dollars in thousands, except per share data)		2022			2022			2022			2022			2021
Assets
Cash and due from banks	$	28,561		$	16,659		$	19,149		$	18,322		$	16,896
Interest-bearing deposits		758			3,267			3,545			5,158			6,579
Federal funds sold		90			20,751			16,689			14,356			30,068
Cash and cash equivalents		29,409			40,677			39,383			37,836			53,543
Securities available for sale (at fair value)		192,197			188,425			190,478			289,704			308,744
Securities held to maturity (fair values of $80,926, $77,467, $82,567, $0 and
$0 respectively)		87,816			87,993			88,216			-			-
Equity securities		2,032			1,870			1,781			1,720			1,701
Bank certificates of deposit (at cost)		-			-			245			245			245
Loans held for sale		-			-			270			-			3,061
Loans receivable, net		961,865			936,686			925,260			875,588			876,337
Accrued interest receivable		4,006			3,493			3,285			3,219			3,256
Foreclosed assets		160			160			160			1,103			1,103
Premises and equipment, net		13,164			13,129			12,981			12,906			12,695
Mortgage servicing rights, net		1,610			1,651			1,711			1,770			1,714
Federal Home Loan Bank stock (at cost)		2,516			2,516			2,646			2,646			2,646
Cash surrender value of bank-owned life insurance		24,922			24,765			24,608			24,455			24,305
Core deposit intangible		382			415			449			487			534
Goodwill		2,541			2,541			2,541			2,541			2,541
Other assets		15,069			15,248			13,550			11,725			6,286
TOTAL ASSETS	$	1,337,689		$	1,319,569		$	1,307,564		$	1,265,945		$	1,298,711
Liabilities
Non-interest-bearing deposits	$	292,338		$	298,335		$	283,592		$	272,611		$	284,477
Interest-bearing deposits		856,417			850,483			829,867			816,794			820,763
Total deposits		1,148,755			1,148,818			1,113,459			1,089,405			1,105,240
Federal Home Loan Bank advances		43,000			40,000			67,000			47,000			47,000
Other borrowings		12,985			10,449			4,601			4,304			6,677
Senior subordinated notes		5,549			2,500			2,500			2,500			2,500
Junior subordinated debentures		12,819			12,793			12,768			12,742			12,717
Accrued expenses and other liabilities		12,639			10,114			10,938			10,208			13,315
Total liabilities		1,235,747			1,224,674			1,211,266			1,166,159			1,187,449
Stockholders' equity
Preferred stock - no par value:
Authorized - 30,000 shares
Outstanding - 7,200, 0, 0, 0, and 0 shares, respectively		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 - 4,297,279, 4,414,651, 4,423,037, 4,434,840 and
4,440,329 shares, respectively		1,830			1,830			1,830			1,830			1,830
Additional paid-in capital		8,300			8,294			8,238			8,183			8,059
Retained earnings		126,003			123,559			120,043			117,957			114,627
Accumulated other comprehensive income (loss), net of tax		(24,220	)		(24,200	)		(19,423	)		(14,097	)		628
Treasury stock, at cost - 1,193,519, 1,076,147, 1,067,761, 1,055,958 and
1,050,469 shares, respectively		(17,171	)		(14,588	)		(14,390	)		(14,087	)		(13,882	)
Total stockholders' equity		101,942			94,895			96,298			99,786			111,262
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,337,689		$	1,319,569		$	1,307,564		$	1,265,945		$	1,298,711

PSB Holdings, Inc.
Consolidated Statements of Income
				Quarter Ended
(dollars in thousands,				Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,			Dec. 31,
except per share data - unaudited)				2022		2022		2022		2022			2021
Interest and dividend income:
Loans, including fees				$	11,251	$	10,225	$	9,295	$	9,054		$	8,918
Securities:
Taxable					1,218		978		859		762			631
Tax-exempt					539		540		537		533			505
Other interest and dividends					141		163		52		42			31
Total interest and dividend income					13,149		11,906		10,743		10,391			10,085
Interest expense:
Deposits					2,060		1,341		595		443			476
FHLB advances					167		209		234		169			192
Other borrowings					38		14		4		2			4
Senior subordinated notes					55		28		28		28			29
Junior subordinated debentures					224		202		179		166			165
Total interest expense					2,544		1,794		1,040		808			866
Net interest income					10,605		10,112		9,703		9,583			9,219
Provision for loan losses					-		-		-		-			-
Net interest income after provision for loan losses					10,605		10,112		9,703		9,583			9,219
Noninterest income:
Service fees					381		409		392		388			382
Gain on sale of mortgage loans					56		98		182		277			451
Mortgage loan servicing, net					179		130		117		176			114
Investment and insurance sales commissions					498		357		404		456			500
Net gain on sale of securities					-		-		-		-			-
Increase in cash surrender value of life insurance					157		157		152		150			151
Other noninterest income					553		558		686		531			646
Total noninterest income					1,824		1,709		1,933		1,978			2,244
Noninterest expense:
Salaries and employee benefits					4,700		4,302		4,548		4,390			4,669
Occupancy and facilities					641		687		629		665			596
Loss (gain) on foreclosed assets					2		4		-		(6	)		(347	)
Data processing and other office operations					910		906		912		861			855
Advertising and promotion					180		185		173		152			155
Core deposit intangible amortization					34		34		38		47			47
Other noninterest expenses					1,219		1,069		1,151		1,083			1,382
Total noninterest expense					7,686		7,187		7,451		7,192			7,357
Income before provision for income taxes					4,743		4,634		4,185		4,369			4,106
Provision for income taxes					1,143		1,119		993		1,039			960
Net income				$	3,600	$	3,515	$	3,192	$	3,330		$	3,146
Preferred stock dividends declared				$	81	$	-	$	-	$	-		$	-
Net income available to common shareholders				$	3,519	$	3,515	$	3,192	$	3,330		$	3,146
Basic earnings per common share				$	0.80	$	0.80	$	0.72	$	0.75		$	0.71
Diluted earnings per common share				$	0.80	$	0.80	$	0.72	$	0.75		$	0.71

PSB Holdings, Inc.
Consolidated Statements of Income
				Three Months Ended						Year Ended
(dollars in thousands,				December						December
except per share data - unaudited)					2022		2021				2022		2021
Interest and dividend income:
Loans, including fees				$	11,251	$	8,918			$	39,825	$	37,655
Securities:
Taxable					1,218		631				3,817		2,272
Tax-exempt					539		505				2,149		2,012
Other interest and dividends					141		31				398		147
Total interest and dividend income					13,149		10,085				46,189		42,086
Interest expense:
Deposits					2,060		476				4,439		1,912
FHLB advances					167		192				779		848
Other borrowings					38		4				58		28
Senior subordinated notes					55		29				139		113
Junior subordinated debentures					224		165				771		584
Total interest expense					2,544		866				6,186		3,485
Net interest income					10,605		9,219				40,003		38,601
Provision for loan losses					-		-				-		1,000
Net interest income after provision for loan losses					10,605		9,219				40,003		37,601
Noninterest income:
Service fees					381		382				1,570		1,440
Gain on sale of mortgage loans					56		451				613		2,760
Mortgage loan servicing, net					179		114				602		313
Investment and insurance sales commissions					498		500				1,715		1,986
Net gain on sale of securities					-		-				-		134
Increase in cash surrender value of life insurance					157		151				616		560
Other noninterest income					553		646				2,328		2,225
Total noninterest income					1,824		2,244				7,444		9,418
Noninterest expense:
Salaries and employee benefits					4,700		4,669				17,940		16,143
Occupancy and facilities					641		596				2,622		2,426
Loss (gain) on foreclosed assets					2		(347	)			-		(166	)
Data processing and other office operations					910		855				3,589		3,876
Advertising and promotion					180		155				690		755
Core deposit intangible amortization					34		116				153		128
Other noninterest expenses					1,219		1,313				4,522		6,948
Total noninterest expense					7,686		7,357				29,516		30,110
Income before provision for income taxes					4,743		4,106				17,931		16,909
Provision for income taxes					1,143		960				4,294		4,092
Net income				$	3,600	$	3,146			$	13,637	$	12,817
Preferred stock dividends declared				$	81	$	-			$	81	$	-
Net income available to common shareholders				$	3,519	$	3,146			$	13,556	$	12,817
Basic earnings per common share				$	0.80	$	0.71			$	3.07	$	2.88
Diluted earnings per common share				$	0.80	$	0.71			$	3.07	$	2.88

PSB Holdings, Inc.
Quarterly Financial Summary
(dollars in thousands, except per share data)				Quarter ended
				Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
Earnings and dividends:					2022			2022			2022			2022			2021
	Interest income			$	13,149		$	11,906		$	10,743		$	10,391		$	10,085
	Interest expense			$	2,544		$	1,794		$	1,040		$	808		$	866
	Net interest income			$	10,605		$	10,112		$	9,703		$	9,583		$	9,219
	Provision for loan losses			$	-		$	-		$	-		$	-		$	-
	Other noninterest income			$	1,824		$	1,709		$	1,933		$	1,978		$	2,244
	Other noninterest expense			$	7,686		$	7,187		$	7,451		$	7,192		$	7,357
	Net income available to common shareholders			$	3,519		$	3,515		$	3,192		$	3,330		$	3,146
	Basic earnings per common share (3)			$	0.80		$	0.80		$	0.72		$	0.75		$	0.71
	Diluted earnings per common share (3)			$	0.80		$	0.80		$	0.72		$	0.75		$	0.71
	Dividends declared per common share (3)			$	0.25		$	-		$	0.25		$	-		$	0.23
	Tangible net book value per common share (4)			$	21.37		$	20.83		$	21.10		$	21.82		$	24.36
	Semi-annual dividend payout ratio				15.27	%	n/a				16.96	%	n/a				15.05	%
	Average common shares outstanding				4,377,330			4,419,421			4,428,939			4,433,375			4,445,465
Balance sheet - average balances:
	Loans receivable, net of allowances for loss			$	945,551		$	931,344		$	904,710		$	878,979		$	870,151
	Assets			$	1,321,776		$	1,323,400		$	1,290,906		$	1,278,565		$	1,295,780
	Deposits			$	1,146,066		$	1,141,784		$	1,099,314		$	1,084,814		$	1,092,872
	Stockholders' equity			$	100,037		$	98,630		$	98,261		$	108,803		$	112,089
Performance ratios:
	Return on average assets (1)				1.06	%		1.05	%		0.99	%		1.06	%		0.96	%
	Return on average stockholders' equity (1)				13.96	%		14.14	%		13.03	%		12.41	%		11.14	%
	Return on average tangible common
	stockholders' equity (1)(4)				15.12	%		14.58	%		13.29	%		12.49	%		11.45	%
	Net loan charge-offs to average loans (1)				0.03	%		0.01	%		-0.02	%		-0.05	%		-0.10	%
	Nonperforming loans to gross loans				0.64	%		1.16	%		1.21	%		1.34	%		1.42	%
	Nonperforming assets to total assets				0.48	%		0.85	%		0.88	%		1.03	%		1.06	%
	Allowance for loan losses to gross loans				1.26	%		1.30	%		1.32	%		1.39	%		1.38	%
	Nonperforming assets to tangible equity
	plus the allowance for loan losses (4)				6.22	%		10.89	%		11.04	%		12.10	%		11.58	%
	Net interest rate margin (1)(2)				3.41	%		3.24	%		3.23	%		3.24	%		3.01	%
	Net interest rate spread (1)(2)				3.10	%		3.04	%		3.11	%		3.14	%		2.89	%
	Service fee revenue as a percent of
	average demand deposits (1)				0.50	%		0.56	%		0.57	%		0.58	%		0.52	%
	Noninterest income as a percent
	of gross revenue				12.18	%		12.55	%		15.25	%		15.99	%		18.20	%
	Efficiency ratio (2)				61.06	%		60.02	%		63.20	%		61.40	%		63.37	%
	Noninterest expenses to average assets (1)				2.31	%		2.15	%		2.32	%		2.28	%		2.25	%
	Tangible equity to tangible assets (4)				7.42	%		6.98	%		7.15	%		7.66	%		8.35	%
Stock price information:
	High			$	22.74		$	23.94		$	26.35		$	26.45		$	27.00
	Low			$	21.50		$	22.50		$	22.82		$	25.80		$	24.60
	Last trade value at quarter-end			$	21.90		$	22.50		$	23.50		$	26.00		$	26.05
(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
				Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
(dollars in thousands - unaudited)					2022			2022			2022			2022			2021
Net income				$	3,600		$	3,515		$	3,192		$	3,330		$	3,146
Other comprehensive income, net of tax:
	Unrealized loss on securities available
		for sale			(116	)		(4,915	)		(5,573	)		(14,847	)		(973	)
	Reclassification adjustment for security
		gain included in net income			-			-			-			-			-
	Amortization of unrealized loss included in net
		income on securities available for sale
		transferred to securities held to maturity			93			92			176			-			-
	Unrealized gain on interest rate swap				12			32			43			85			31
	Reclassification adjustment of interest rate
		swap settlements included in earnings			(8	)		13			28			37			40
Other comprehensive loss					(19	)		(4,778	)		(5,326	)		(14,725	)		(902	)
Comprehensive income (loss)				$	3,581		$	(1,263	)	$	(2,134	)	$	(11,395	)	$	2,244

PSB Holdings, Inc.
Nonperforming Assets as of:
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(dollars in thousands)		2022			2022			2022			2022			2021
Nonaccrual loans (excluding restructured loans)	$	5,879		$	6,048		$	6,036		$	6,537		$	6,425
Nonaccrual restructured loans		62			70			146			170			1,000
Restructured loans not on nonaccrual		270			4,904			5,137			5,172			5,213
Accruing loans past due 90 days or more		-			-			-			-			-
Total nonperforming loans		6,211			11,022			11,319			11,879			12,638
Other real estate owned		160			160			160			1,103			1,103
Total nonperforming assets	$	6,371		$	11,182		$	11,479		$	12,982		$	13,741
Nonperforming loans as a % of gross loans receivable		0.64	%		1.16	%		1.21	%		1.34	%		1.42	%
Total nonperforming assets as a % of total assets		0.48	%		0.85	%		0.88	%		1.03	%		1.06	%
Allowance for loan losses as a % of nonperforming loans		197.92	%		112.28	%		109.48	%		103.89	%		96.71	%

PSB Holdings, Inc.
Nonperforming Assets >= $500,000 net book value before specific reserves
At December 31, 2022
(dollars in thousands)
		Gross			Specific
Collateral Description	Asset Type	Principal			Reserves
Real estate - Buffet Style Restaurant	Nonaccrual	$	2,938		$	1,197
Real estate - Independent Auto Repair	Nonaccrual		798			87
Total listed nonperforming assets		$	3,736		$	1,284
Total bank wide nonperforming assets		$	6,371		$	1,650
Listed assets as a % of total nonperforming assets			59	%		78	%

PSB Holding, Inc.
Loan Composition by Purpose
Quarter-ended (dollars in thousands)	Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021
Residential real estate:
One to four family	$	182,688		$	172,913		$	169,437		$	168,083		$	168,584
HELOC loans		17,625			18,423			17,776			16,709			17,198
Residential construction & development		20,698			22,313			22,462			21,590			23,093
Residential vacant land		1,414			3,069			1,599			1,697			1,763
Total Residential real estate		222,425			216,718			211,274			208,079			210,638
Commercial/Agricultural real estate:
Owner occupied
Commercial real estate		220,375			211,008			205,976			208,271			202,416
SBA commercial real estate		2,514			2,616			2,458			2,530			1,568
Agriculture real estate		3,835			3,902			3,583			3,651			3,716
Construction and land development		22,330			32,158			31,465			26,111			22,380
Commercial vacant land		7,291			5,214			5,351			5,194			3,529
Total Owner occupied		256,345			254,898			248,833			245,757			233,609
Non-owner occupied
Commercial real estate		228,761			225,823			227,400			212,407			211,688
One to four family residential rental		64,764			66,224			61,749			56,305			52,437
SBA commercial real estate		-			-			-			-			1,010
Construction and land development		27,253			25,543			25,086			23,080			25,899
Commercial vacant land		3,862			4,010			4,287			4,191			4,534
Total Non-owner occupied		324,640			321,600			318,522			295,983			295,568
Commercial/Agricultural non-real estate:
Municipal non-real estate		9,915			7,133			6,352			6,403			11,858
Commercial line		63,173			56,154			65,728			54,626			52,151
Other commercial non-real estate		87,535			82,430			76,065			64,260			61,115
SBA commercial non-real estate		3,533			3,378			3,926			6,068			17,527
Agricultural non-real estate		1,290			1,491			1,409			1,340			1,130
Total Commercial/Agr. non-real estate		165,446			150,586			153,480			132,697			143,781
Consumer non-real estate:
Consumer installment		4,072			4,005			4,305			4,201			4,054
Consumer line		382			494			493			486			480
Other consumer		115			116			123			118			117
Total Consumer non-real estate		4,569			4,615			4,921			4,805			4,651
Gross loans		973,425			948,417			937,030			887,321			888,247
Net deferred loan costs (fees)		573			537			503			423			107
Overdrafts		160			107			119			185			205
Allowance for loan losses		(12,293	)		(12,375	)		(12,392	)		(12,341	)		(12,222	)
Total loans receivable	$	961,865		$	936,686		$	925,260		$	875,588		$	876,337

PSB Holdings, Inc.
Deposit Composition
	December 31,					September 30,					June 30,					March 31,					December 31,
(dollars in thousands)	2022					2022					2022					2022					2021
	$		%			$		%			$		%			$		%			$		%
Non-interest bearing demand	$	292,338	25.4	%		$	298,335	26.0	%		$	283,592	25.5	%		$	272,611	25.0	%		$	284,477	25.7	%
Interest-bearing demand and savings		395,771	34.5	%			377,831	32.9	%			376,150	33.8	%			382,829	35.1	%			413,522	37.4	%
Money market deposits		216,073	18.8	%			228,619	19.9	%			226,907	20.4	%			221,982	20.4	%			219,145	19.8	%
Retail and local time deposits <= $250		130,205	11.3	%			132,095	11.4	%			136,230	12.1	%			138,821	12.8	%			140,443	12.8	%
Total core deposits		1,034,387	90.0	%			1,036,880	90.2	%			1,022,879	91.8	%			1,016,243	93.3	%			1,057,587	95.7	%
Retail and local time deposits > $250		25,478	2.2	%			22,799	2.0	%			26,882	2.4	%			28,754	2.6	%			28,659	2.6	%
Broker & national time deposits <= $250		6,451	0.6	%			6,700	0.6	%			7,443	0.7	%			7,443	0.7	%			7,793	0.7	%
Broker & national time deposits > $250		82,439	7.2	%			82,439	7.2	%			56,255	5.1	%			36,965	3.4	%			11,201	1.0	%
Totals	$	1,148,755	100.0	%		$	1,148,818	100.0	%		$	1,113,459	100.0	%		$	1,089,405	100.0	%		$	1,105,240	100.0	%

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
			Quarter ended December 31, 2022								Quarter ended September 30, 2022								Quarter ended December 31, 2021
			Average					Yield /			Average					Yield /			Average					Yield /
			Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)			$	957,926		$	11,266	4.67	%		$	943,724		$	10,235	4.30	%		$	882,157		$	8,930	4.02	%
Taxable securities				197,070			1,218	2.45	%			199,727			978	1.94	%			214,626			631	1.17	%
Tax-exempt securities (2)				82,074			682	3.30	%			82,242			684	3.30	%			83,518			639	3.04	%
FHLB stock				2,516			32	5.05	%			2,579			32	4.92	%			2,646			18	2.70	%
Other				14,131			109	3.06	%			28,823			131	1.80	%			53,098			13	0.10	%
Total (2)				1,253,717			13,307	4.21	%			1,257,095			12,060	3.81	%			1,236,045			10,231	3.28	%
Non-interest-earning assets:
Cash and due from banks				18,941								19,400								19,967
Premises and equipment,
net				13,123								13,052								12,699
Cash surrender value ins				24,822								24,666								24,216
Other assets				23,548								21,567								14,859
Allowance for loan
losses				(12,375	)							(12,380	)							(12,006	)
Total			$	1,321,776							$	1,323,400							$	1,295,780
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand
deposits			$	376,075		$	690	0.73	%		$	375,617		$	370	0.39	%		$	388,549		$	76	0.08	%
Money market deposits				224,701			601	1.06	%			232,713			399	0.68	%			222,399			93	0.17	%
Time deposits				241,290			769	1.26	%			245,353			572	0.92	%			188,301			307	0.65	%
FHLB borrowings				35,522			167	1.87	%			49,924			209	1.66	%			52,705			192	1.45	%
Other borrowings				11,307			38	1.33	%			6,919			14	0.80	%			11,585			4	0.14	%
Senior sub. notes				4,522			55	4.83	%			2,500			28	4.44	%			2,500			29	4.60	%
Junior sub. debentures				12,806			224	6.94	%			12,781			202	6.27	%			12,704			165	5.15	%
Total				906,223			2,544	1.11	%			925,807			1,794	0.77	%			878,743			866	0.39	%
Non-interest-bearing liabilities:
Demand deposits				304,000								288,101								293,623
Other liabilities				11,516								10,862								11,325
Stockholders' equity				100,037								98,630								112,089
Total			$	1,321,776							$	1,323,400							$	1,295,780
Net interest income						$	10,763							$	10,266							$	9,365
Rate spread								3.10	%							3.04	%							2.89	%
Net yield on interest-earning assets								3.41	%							3.24	%							3.01	%
(1) Nonaccrual loans are included in the daily average loan balances outstanding.
(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
			Year ended December 31, 2022								Year ended December 31, 2021
			Average					Yield/			Average					Yield/
			Balance			Interest		Rate			Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)			$	927,720		$	39,871	4.30	%		$	875,571		$	37,702	4.31	%
Taxable securities				204,630			3,817	1.87	%			176,816			2,272	1.28	%
Tax-exempt securities (2)				82,977			2,720	3.28	%			84,141			2,547	3.03	%
FHLB stock				2,597			114	4.39	%			2,551			89	3.49	%
Other				20,848			284	1.36	%			48,616			58	0.12	%
Total (2)				1,238,772			46,806	3.78	%			1,187,695			42,668	3.59	%
Non-interest-earning assets:
Cash and due from banks				18,772								20,003
Premises and equipment,
net				12,988								12,625
Cash surrender value ins				24,591								22,527
Other assets				20,896								14,184
Allowance for loan
losses				(12,347	)							(11,767	)
Total			$	1,303,672							$	1,245,267
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand
deposits			$	381,849		$	1,251	0.33	%		$	364,602		$	279	0.08	%
Money market deposits				223,409			1,210	0.54	%			216,888			397	0.18	%
Time deposits				227,570			1,978	0.87	%			174,001			1,236	0.71	%
FHLB borrowings				49,784			779	1.56	%			63,180			848	1.34	%
Other borrowings				7,439			58	0.78	%			20,259			28	0.14	%
Senior sub. notes				3,010			139	4.62	%			2,500			113	4.52	%
Junior sub. debentures				12,768			771	6.04	%			10,708			584	5.45	%
Total				905,829			6,186	0.68	%			852,138			3,485	0.41	%
Non-interest-bearing liabilities:
Demand deposits				285,261								271,866
Other liabilities				11,330								11,032
Stockholders' equity				101,252								110,231
Total			$	1,303,672							$	1,245,267
Net interest income						$	40,620							$	39,183
Rate spread								3.10	%							3.18	%
Net yield on interest-earning assets								3.28	%							3.30	%
(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

FAQ

What were PSB Holdings' earnings for Q4 2022?

PSB Holdings reported earnings of $0.80 per share for Q4 2022.

How did PSB Holdings performance in 2022 compare to 2021?

In fiscal 2022, PSB Holdings had record earnings of $3.07 per share, up from $2.88 per share in 2021.

What is the current status of PSB Holdings' loan portfolio?

PSB Holdings reported a 2.7% increase in loans during Q4 2022, totaling $962 million.

What strategic actions is PSB Holdings taking to manage growth?

PSB announced a share repurchase program and increased capital and liquidity positions to support growth.

How has PSB Holdings' asset quality changed in 2022?

PSB Holdings' non-performing assets decreased to 0.48% of total assets by the end of 2022.