PSB Holdings, Inc. Reports Fourth Quarter 2023 Earnings of $0.55 Per Share; Capital Up 6.2% From Prior Quarter

Rhea-AI Summary

PSB Holdings, Inc. reported fourth-quarter earnings of $0.55 per share on net income of $2.3 million, compared to $0.29 per share on net income of $1.2 million in the third quarter, and $0.80 per share on net income of $3.5 million in the fourth quarter of 2022. The company's net interest income remained unchanged at $9.6 million, and the effective tax rate declined to 26.7%. Tangible book value per common share increased 7.1% to $23.84, and the return on tangible common equity was 9.64%. Loans decreased $19.5 million, and non-interest income was $1.1 million compared to $1.7 million in the prior quarter. Total assets decreased slightly to $1.42 billion, and total deposits decreased $30.4 million to $1.14 billion. The company's tangible stockholder equity as a percent of total tangible assets was 7.49% at December 31, 2023.

WAUSAU, Wis., Jan. 24, 2024 (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, 2023 of $0.55 per common share on net income of $2.3 million, compared to $0.29 per common share on net income of $1.2 million during the third quarter ending September 30, 2023, and $0.80 per common share on net income of $3.5 million during the fourth quarter ending December 31, 2022.

PSB’s fourth quarter 2023 operating results reflected the following changes from the third quarter of 2023: (1) lower tax expense related to a change in Wisconsin tax law passed in July 2023 that eliminated state taxes on certain qualified assets; (2) lower non-interest income due to losses on the sale of investment securities; (3) lower non-interest expense related to lower salary and benefit expenses; (4) lower accumulated other comprehensive income (loss) (“AOCI”) due to a decrease in intermediate interest rates; (5) stronger capital ratios supported by additional earnings, AOCI improvements and lower total assets; and (6) an increase in insured and collateralized core deposits.

“We are seeing the decline in our net interest margin stabilize, non-performing assets remain low and overhead expenses contained at an acceptable level. With the challenging economic and interest rate environment experienced in 2023, we delivered a return of 9.62% on common tangible shareholder equity. Though different challenges may arise during 2024, we are proud of the commitment our team has to deliver strong returns to shareholders. Our organization is filled with strong personnel dedicated to making good decisions and building the best bank for the communities we serve,” stated Scott Cattanach, President and CEO. “We bring conservative growth expectations into 2024, but if industry credit conditions remain good and we return net interest margin to historical levels in excess of 3.00%, we expect our earnings in 2024 to exceed 2023 levels.”

December 31, 2023, Highlights:

• Net interest income was unchanged at $9.6 million for the quarter ended December 31, 2023 as increases in funding costs were offset by increases in asset yields.
  
• The effective tax rate declined to 26.7% for the quarter ended December 31, 2023 compared to 63.8% the prior quarter and 24.1% one year earlier. The current quarter includes additional impacts from continued adoption of the 2023 changes in Wisconsin tax law. The prior quarter reflected recognition of an allowance against Wisconsin deferred tax assets, including those assets related to accumulated other comprehensive income. During calendar 2023, adoption of the Wisconsin tax change increased tax expense by $1.9 million.
  
• Tangible book value per common share increased 7.1% to $23.84 at December 31, 2023 compared to $22.25 one quarter earlier. During the fourth quarter ended December 31, 2023, tangible book value was positively influenced by net income, intangible asset amortization and lower accumulated other comprehensive loss.
  
• Return on tangible common equity was 9.64% for the quarter ended December 31, 2023 compared to 5.17% the prior quarter and 15.23% one year earlier.
  
• Loans decreased $19.5 million in the fourth quarter ended December 31, 2023, to $1.1 billion. Allowance for credit losses increased to 1.13% of gross loans.
  
• Noninterest income was $1.1 million for the quarter ended December 31, 2023 compared to $1.7 million the prior quarter. The current quarter reflected lower mortgage banking income and a $297,000 loss on the sale of investment securities.
  
• Noninterest expenses decreased $96,000 in the fourth quarter of 2023, to $7.4 million from $7.5 million the prior quarter. The decrease was primarily related to lower salaries and benefit expenses.
  

Balance Sheet and Asset Quality Review

Total assets decreased slightly to $1.42 billion at December 31, 2023, from $1.44 billion at September 30, 2023. Cash and cash equivalents increased $6.51 million, to $27.8 million at December 31, 2023 compared to $21.3 million the previous quarter. The higher cash and cash equivalent level primarily reflects proceeds from loan payoffs. Investment securities available for sale increased slightly to $164.0 million at December 31, 2023 from $160.9 million one quarter earlier. During the fourth quarter, $4.0 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 $363 million at December 31, 2023 with an additional $310 million that could be raised in a short timeframe from the brokered CDs market.

Despite 2023 full year loan growth of 12.1%, total loans receivable decreased $19.5 million to $1.08 billion at December 31, 2023, from $1.10 billion at September 30, 2023. Commercial real estate loans decreased $8.0 million to $617.9 million at December 31, 2023 from $625.9 million the prior quarter. Commercial non-real estate loans decreased $16.9 million to $161.0 million at December 31, 2023 from $177.9 million one quarter earlier. Residential real estate loans increased $1.36 million from the prior quarter to $338.2 million from $336.8 million. The loan portfolio remains well diversified with commercial real estate loans totaling 55.1% of gross loans followed by residential real estate loans at 30.2% of gross loans, commercial non-real estate loans at 14.4% and consumer loans at 0.3%.

The allowance for credit losses increased slightly to 1.13% of gross loans at December 31, 2023 from 1.10% the prior quarter. Annualized net charge-offs to average loans were zero for the fourth and third quarters ended December 31, 2023 and September 30, 2023 compared to net charge-offs of 0.03% one year earlier. Non-performing assets remained at 0.42% of total assets at December 31, 2023. For the fourth consecutive quarter, the Bank did not own any foreclosed real estate.

Total deposits decreased $30.4 million to $1.14 billion at December 31, 2023 from $1.17 billion at September 30, 2023. The decline in deposits reflects pay down of $18.3 million in maturing brokered deposits and national CDs and a $22.5 million decline in uninsured deposits. Insured core and time deposits increased $10.4 million during the fourth quarter.

The composition of deposits continued to change during the fourth quarter of 2023 as customers continue to seek higher deposit rates. At December 31, 2023, money market deposits and retail time deposits increased to 40.6% of deposits, compared to 39.2% at September 30, 2023. Uninsured and uncollateralized deposits represented 20.9% of total deposits at December 31, 2023 compared to 22.2% at September 30, 2023.

FHLB advances increased to $134.0 million at December 31, 2023 compared to $128.0 million at September 30, 2023. FHLB advances were used to fund repayment of certain brokered deposit maturities. Other borrowings increased by $2.4 million to $8.1 million at December 31, 2023.

Tangible stockholder equity as a percent of total tangible assets was 7.49% at December 31, 2023, compared to 6.98% at September 30, 2023 and 7.42% at December 31, 2022.

Tangible net book value per common share increased $2.47, or 11.6% to $23.84 at December 31, 2023, compared to $21.37 one year earlier. Relative to the prior quarter, tangible net book value per common share increased $1.59, or 7.1% due to continued earnings and a decrease in accumulated other comprehensive loss of $5.5 million. Lower interest rates and new security purchases increased the market value on the available for sale securities portfolio during the fourth quarter.

Operations Review

Net interest income remained at $9.6 million (on a net margin of 2.88%) for the fourth quarter of 2023, equal to $9.6 million (on a net margin of 2.88%) for the third quarter of 2023, and $10.6 million (on a net margin of 3.41%) for the fourth quarter of 2022. Earning asset yields increased 21 basis points to 4.99% during the fourth quarter of 2023 from 4.78% during the third quarter of 2023, while deposit and borrowing costs increased 28 basis points to 2.79% compared to 2.51% during the third quarter of 2023.

The increase in earning asset yields was primarily due to higher yields on loan originations and renewals during the quarter. Taxable security yields were 2.72% for the quarter ended December 31, 2023, compared to 2.55% for the quarter ended September 30, 2023, up 17 basis points. Loan yields increased during the fourth quarter to 5.43% from 5.23% for the third quarter of 2023, up 20 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. The overall cost of deposits was 1.91% for the quarter ended December 31, 2023 compared to 1.66% the prior quarter, up 25 basis points. FHLB advance costs rose to 4.01% during the fourth quarter ended December 31, 2023 from 3.90% the prior quarter.

Total noninterest income decreased for the fourth quarter of 2023 to $1.10 million, from $1.68 million for the third quarter of 2023, due primarily to a loss on the sale of investment securities during the fourth quarter of $297,000. Additionally, mortgage banking income declined by $98,000, or 28%. At December 31, 2023, the Bank serviced $366.6 million in secondary market residential mortgage loans for others which provides fee income. Total mortgage banking income was $247,000 for the quarter ended December 31, 2023 compared to $345,000 for the quarter ended September 30, 2023.

Noninterest expenses decreased to $7.4 million for the fourth quarter of 2023, compared to $7.5 million for the third quarter of 2023. The fourth quarter of 2023 included lower salary and benefit expenses relative to the prior quarter.

Taxes decreased $1.5 million during the fourth quarter to $878,000 from $2.38 million one quarter earlier. The decrease reflects a prior quarter charge of $2.8 million related to a Wisconsin state tax change signed by the Governor in July 2023, effective January 1, 2023. Due to the tax change, the Company does not expect to incur Wisconsin state income tax during 2024.

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. 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.

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

PSB Holdings, Inc.
Consolidated Balance Sheets
December 31, September 30, June 30, and March 31, 2023, unaudited, December 31, 2022 derived from audited financial statements
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
(dollars in thousands, except per share data)		2023			2023			2023			2023			2022
Assets
Cash and due from banks	$	20,887		$	12,881		$	27,409		$	13,336		$	28,561
Interest-bearing deposits		1,431			668			892			538			758
Federal funds sold		5,462			7,764			16,138			25,766			90
Cash and cash equivalents		27,780			21,313			44,439			39,640			29,409
Securities available for sale (at fair value)		164,024			160,883			167,382			190,738			192,197
Securities held to maturity (fair values of $82,514, $75,236, $81,489, $82,610 and
$80,926 respectively)		87,081			86,908			87,335			87,889			87,816
Equity securities		1,474			2,273			2,178			2,070			2,032
Loans held for sale		230			971			151			-			-
Loans receivable, net (allowance for credit losses $12,302, $12,267, $11,922,
$11,593 and $12,293 respectively)		1,078,475			1,098,019			1,048,322			973,270			961,865
Accrued interest receivable		5,136			4,716			4,274			4,062			4,006
Foreclosed assets		-			-			-			-			160
Premises and equipment, net		13,098			13,242			13,256			13,406			13,164
Mortgage servicing rights, net		1,664			1,684			1,666			1,682			1,610
Federal Home Loan Bank stock (at cost)		6,373			6,373			6,359			4,620			2,516
Cash surrender value of bank-owned life insurance		24,085			23,931			23,776			25,078			24,922
Core deposit intangible		273			297			321			348			382
Goodwill		2,541			2,541			2,541			2,541			2,541
Other assets		11,866			14,094			14,933			14,444			15,069
TOTAL ASSETS	$	1,424,100		$	1,437,245		$	1,416,933		$	1,359,788		$	1,337,689
Liabilities
Non-interest-bearing deposits	$	266,829		$	288,765		$	282,153		$	267,836		$	292,338
Interest-bearing deposits		874,973			883,474			860,981			839,757			856,417
Total deposits		1,141,802			1,172,239			1,143,134			1,107,593			1,148,755
Federal Home Loan Bank advances		134,000			128,000			133,000			113,000			43,000
Other borrowings		8,058			5,660			5,730			5,033			12,985
Senior subordinated notes		4,774			4,772			4,771			4,769			5,549
Junior subordinated debentures		12,921			12,896			12,870			12,844			12,819
Allowance for credit losses on unfunded commitments		577			512			712			762			-
Accrued expenses and other liabilities		12,681			10,258			11,783			10,576			12,639
Total liabilities		1,314,813			1,334,337			1,312,000			1,254,577			1,235,747
Stockholders' equity
Preferred stock - no par value:
Authorized - 30,000 shares; no shares issued or outstanding
Outstanding - 7,200, 7,200, 7,200, 7,200, and 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 - 4,164,735, 4,174,197, 4,190,252, 4,241,501 and
4,297,279 shares, respectively		1,830			1,830			1,830			1,830			1,830
Additional paid-in capital		8,460			8,421			8,382			8,311			8,300
Retained earnings		132,666			131,624			130,396			128,968			126,003
Accumulated other comprehensive loss, net of tax		(20,689	)		(26,190	)		(23,240	)		(22,515	)		(24,220	)
Treasury stock, at cost - 1,326,063, 1,316,601, 1,300,546, 1,249,297 and
1,193,519 shares, respectively		(20,180	)		(19,977	)		(19,635	)		(18,583	)		(17,171	)
Total stockholders' equity		109,287			102,908			104,933			105,211			101,942
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,424,100		$	1,437,245		$	1,416,933		$	1,359,788		$	1,337,689

PSB Holdings, Inc.
Consolidated Statements of Income
	Quarter Ended														Year Ended
(dollars in thousands,	Dec. 31,			Sep. 30,		Jun. 30,			Mar. 31,			Dec. 31,			December
except per share data - unaudited)	2023			2023		2023			2023			2022			2023			2022
Interest and dividend income:
Loans, including fees	$	14,888		$	14,263	$	12,709		$	11,773		$	11,251		$	53,633		$	39,825
Securities:
Taxable		1,147			1,114		1,327			1,331			1,218			4,919			3,817
Tax-exempt		532			533		535			537			539			2,137			2,149
Other interest and dividends		320			238		145			148			141			851			398
Total interest and dividend income		16,887			16,148		14,716			13,789			13,149			61,540			46,189
Interest expense:
Deposits		5,526			4,817		3,661			2,989			2,060			16,993			4,439
FHLB advances		1,349			1,321		1,200			547			167			4,417			779
Other borrowings		54			51		48			62			38			215			58
Senior subordinated notes		59			59		58			62			55			238			139
Junior subordinated debentures		254			255		242			234			224			985			771
Total interest expense		7,242			6,503		5,209			3,894			2,544			22,848			6,186
Net interest income		9,645			9,645		9,507			9,895			10,605			38,692			40,003
Provision for credit losses		100			150		100			100			-			450			-
Net interest income after provision for credit losses		9,545			9,495		9,407			9,795			10,605			38,242			40,003
Noninterest income:
Service fees		360			349		378			361			381			1,448			1,570
Mortgage banking income		247			345		311			325			235			1,228			1,215
Investment and insurance sales commissions		100			158		287			365			498			910			1,715
Net loss on sale of securities		(297	)		-		(279	)		-			-			(576	)		-
Increase in cash surrender value of life insurance		154			155		149			157			157			615			616
Life insurance death benefit		-			-		533			-			-			533			-
Other noninterest income		540			675		605			742			553			2,562			2,328
Total noninterest income		1,104			1,682		1,984			1,950			1,824			6,720			7,444
Noninterest expense:
Salaries and employee benefits		4,244			4,514		4,884			5,006			4,700			18,648			17,940
Occupancy and facilities		675			689		698			699			641			2,761			2,622
Loss (gain) on foreclosed assets		1			-		4			(50	)		2			(45	)		-
Data processing and other office operations		1,001			953		951			880			910			3,785			3,589
Advertising and promotion		244			161		166			162			180			733			690
Core deposit intangible amortization		24			24		27			34			34			109			153
Other noninterest expenses		1,169			1,113		1,202			1,073			1,219			4,557			4,522
Total noninterest expense		7,358			7,454		7,932			7,804			7,686			30,548			29,516
Income before provision for income taxes		3,291			3,723		3,459			3,941			4,743			14,414			17,931
Provision for income taxes		878			2,374		652			941			1,143			4,845			4,294
Net income	$	2,413		$	1,349	$	2,807		$	3,000		$	3,600		$	9,569		$	13,637
Preferred stock dividends declared	$	122		$	122	$	122		$	122		$	81		$	486		$	81
Net income available to common shareholders	$	2,291		$	1,227	$	2,685		$	2,878		$	3,519		$	9,083		$	13,556
Basic earnings per common share	$	0.55		$	0.29	$	0.64		$	0.67		$	0.80		$	2.16		$	3.07
Diluted earnings per common share	$	0.55		$	0.29	$	0.64		$	0.67		$	0.80		$	2.16		$	3.07

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:			2023			2023			2023			2023			2022
	Interest income	$	16,887		$	16,148		$	14,716		$	13,789		$	13,149
	Interest expense	$	7,242		$	6,503		$	5,209		$	3,894		$	2,544
	Net interest income	$	9,645		$	9,645		$	9,507		$	9,895		$	10,605
	Provision for credit losses	$	100		$	150		$	100		$	100		$	-
	Other noninterest income	$	1,104		$	1,682		$	1,984		$	1,950		$	1,824
	Other noninterest expense	$	7,358		$	7,454		$	7,932		$	7,804		$	7,686
	Net income available to common shareholders	$	2,291		$	1,227		$	2,685		$	2,878		$	3,519
	Basic earnings per common share (3)	$	0.55		$	0.29		$	0.64		$	0.67		$	0.80
	Diluted earnings per common share (3)	$	0.55		$	0.29		$	0.64		$	0.67		$	0.80
	Dividends declared per common share (3)	$	0.30		$	-		$	0.30		$	-		$	0.25
	Tangible net book value per common share (4)	$	23.84		$	22.25		$	22.64		$	22.43		$	21.37
	Semi-annual dividend payout ratio		38.14	%	n/a				27.38	%	n/a				15.27	%
	Average common shares outstanding		4,168,924			4,186,940			4,218,226			4,275,160			4,377,330
Balance sheet - average balances:
	Loans receivable, net of allowances for credit loss	$	1,081,851		$	1,076,158		$	1,000,349		$	964,029		$	945,551
	Assets	$	1,424,240		$	1,425,522		$	1,367,363		$	1,336,511		$	1,321,776
	Deposits	$	1,148,399		$	1,149,624		$	1,098,039		$	1,124,091		$	1,146,066
	Stockholders' equity	$	105,060		$	105,758		$	106,762		$	103,406		$	100,037
Performance ratios:
	Return on average assets (1)		0.67	%		0.38	%		0.82	%		0.91	%		1.08	%
	Return on average common stockholders' equity (1)		9.29	%		4.94	%		10.82	%		12.13	%		14.66	%
	Return on average tangible common
	stockholders' equity (1)(4)		9.64	%		5.17	%		11.23	%		12.63	%		15.23	%
	Net loan charge-offs to average loans (1)		0.00	%		0.00	%		-0.07	%		-0.02	%		0.03	%
	Nonperforming loans to gross loans		0.54	%		0.55	%		0.60	%		0.62	%		0.64	%
	Nonperforming assets to total assets		0.42	%		0.42	%		0.45	%		0.45	%		0.48	%
	Allowance for credit losses to gross loans		1.13	%		1.10	%		1.12	%		1.18	%		1.26	%
	Nonperforming assets to tangible equity
	plus the allowance for credit losses (4)		5.40	%		5.90	%		6.00	%		5.80	%		6.22	%
	Net interest rate margin (1)(2)		2.88	%		2.88	%		2.98	%		3.21	%		3.41	%
	Net interest rate spread (1)(2)		2.20	%		2.27	%		2.46	%		2.77	%		3.10	%
	Service fee revenue as a percent of
	average demand deposits (1)		0.52	%		0.50	%		0.58	%		0.52	%		0.50	%
	Noninterest income as a percent
	of gross revenue		6.14	%		9.43	%		11.88	%		12.39	%		12.18	%
	Efficiency ratio (2)		67.04	%		64.58	%		68.09	%		65.02	%		61.06	%
	Noninterest expenses to average assets (1)		2.05	%		2.07	%		2.33	%		2.37	%		2.31	%
	Average stockholders' equity less accumulated
	other comprehensive income (loss) to
	average assets		8.88	%		9.00	%		9.33	%		9.32	%		9.23	%
	Tangible equity to tangible assets (4)		7.49	%		6.98	%		7.22	%		7.54	%		7.42	%
Stock price information:
	High	$	22.30		$	22.50		$	21.38		$	25.75		$	22.74
	Low	$	20.10		$	20.35		$	19.75		$	20.00		$	21.50
	Last trade value at quarter-end	$	22.11		$	21.15		$	20.35		$	21.15		$	21.90
(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
				Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
(dollars in thousands - unaudited)					2023			2023			2023			2023			2022
Net income				$	2,413		$	1,349		$	2,807		$	3,000		$	3,600
Other comprehensive income, net of tax:
	Unrealized gain (loss) on securities available
		for sale			5,323			(3,085	)		(1,168	)		1,601			(116	)
	Reclassification adjustment for security
		loss included in net income			235			-			202			-			-
	Amortization of unrealized loss included in net
		income on securities available for sale
		transferred to securities held to maturity			91			91			107			129			93
	Unrealized gain (loss) on interest rate swap				(109	)		79			161			(1	)		11
	Reclassification adjustment of interest rate
		swap settlements included in earnings			(39	)		(35	)		(27	)		(24	)		(8	)
Other comprehensive income (loss)					5,501			(2,950	)		(725	)		1,705			(20	)
Comprehensive income (loss)				$	7,914		$	(1,601	)	$	2,082		$	4,705		$	3,580

PSB Holdings, Inc.
Nonperforming Assets as of:
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(dollars in thousands)		2023			2023			2023			2023			2022
Nonaccrual loans (excluding restructured loans)	$	5,596		$	5,807		$	6,000		$	5,773		$	5,879
Nonaccrual restructured loans		34			42			50			57			62
Restructured loans not on nonaccrual		310			256			261			265			270
Accruing loans past due 90 days or more		-			-			-			-			-
Total nonperforming loans		5,940			6,105			6,311			6,095			6,211
Other real estate owned		-			-			-			-			160
Total nonperforming assets	$	5,940		$	6,105		$	6,311		$	6,095		$	6,371
Nonperforming loans as a % of gross loans receivable		0.54	%		0.55	%		0.60	%		0.62	%		0.64	%
Total nonperforming assets as a % of total assets		0.42	%		0.42	%		0.45	%		0.45	%		0.48	%
Allowance for credit losses as a % of nonperforming loans		207.10	%		200.93	%		188.91	%		190.21	%		197.92	%

PSB Holdings, Inc.
Nonperforming Assets >= $500,000 net book value before specific reserves
At December 31, 2023
(dollars in thousands)
		Gross			Specific
Collateral Description	Asset Type	Principal			Reserves
Real estate - Buffet Style Restaurant	Nonaccrual	$	2,676		$	935
Real estate - Independent Auto Repair	Nonaccrual		654			21
Total listed nonperforming assets		$	3,330		$	956
Total bank wide nonperforming assets		$	5,940		$	1,340
Listed assets as a % of total nonperforming assets			56	%		71	%

PSB Holding, Inc.
Loan Composition by Collateral Type
Quarter-ended (dollars in thousands)	Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022
Commercial:
Commercial and instrustrial	$	117,207		$	138,299		$	145,434		$	133,427		$	129,640
Agriculture		12,304			12,464			13,326			12,434			12,979
Municipal		31,530			27,186			25,222			6,430			9,915
Total Commercial		161,041			177,949			183,982			152,291			152,534
Commercial Real Estate:
Commercial real estate		536,209			539,488			490,657			469,395			471,225
Construction and development		81,701			86,456			99,769			103,108			100,775
Total Commercial Real Estate		617,910			625,944			590,426			572,503			572,000
Residential real estate:
Residential		274,453			274,632			274,692			261,415			253,740
Construction and development		33,960			33,141			41,485			26,480			24,367
HELOC		29,766			29,044			26,220			25,001			24,173
Total Residential Real Estate		338,179			336,817			342,397			312,896			302,280
Consumer installment		4,357			4,350			4,142			4,079			4,734
Subtotals - Gross loans		1,121,487			1,145,060			1,120,947			1,041,769			1,031,548
Loans in process of disbursement		(31,359	)		(35,404	)		(61,308	)		(57,448	)		(57,963	)
Subtotals - Disbursed loans		1,090,128			1,109,656			1,059,639			984,321			973,585
Net deferred loan costs		649			630			605			542			573
Allowance for credit losses		(12,302	)		(12,267	)		(11,922	)		(11,593	)		(12,293	)
Total loans receivable	$	1,078,475		$	1,098,019		$	1,048,322		$	973,270		$	961,865

PSB Holding, Inc.
Selected Commercial Real Estate Loans by Purpose
	Dec 31,					Sep 30,					June 30,					Mar 31,					Dec 31,
(dollars in thousands)		2023					2023					2023					2023					2022
	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	$	132,386	13.2	%		$	133,466	13.3	%		$	119,573	12.4	%		$	121,559	13.0	%		$	120,232	13.1	%
Industrial and Warehousing		83,817	8.3				88,906	8.9				84,049	8.7				78,934	8.5				76,536	8.3
Retail		35,419	3.5				35,281	3.5				34,004	3.5				34,427	3.7				32,587	3.5
Hotels		36,100	3.6				31,819	3.2				33,329	3.5				31,069	3.3				32,940	3.6
Office		6,701	0.7				6,746	0.7				8,395	0.9				8,544	0.9				8,652	0.9
(1) Percentage of commercial and commercial real estate portfolio and commitments.

PSB Holdings, Inc.
Deposit Composition
Insured and Collateralized Deposits	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)		2023				2023				2023				2023				2022
	$		%		$		%		$		%		$		%		$		%
Non-interest bearing demand	$	197,571	17.3	%	$	209,133	17.8	%	$	201,351	17.6	%	$	205,350	18.6	%	$	203,115	17.7	%
Interest-bearing demand and savings		317,984	27.8	%		307,620	26.3	%		310,006	27.1	%		329,364	29.7	%		345,854	30.1	%
Money market deposits		142,887	12.5	%		135,910	11.6	%		126,851	11.1	%		128,576	11.6	%		131,400	11.4	%
Retail and local time deposits <= $250		149,145	13.1	%		144,733	12.3	%		140,572	12.3	%		136,090	12.3	%		130,205	11.3	%
Total core deposits		807,587	70.7	%		797,396	68.0	%		778,780	68.1	%		799,380	72.2	%		810,574	70.5	%
Retail and local time deposits > $250		23,000	2.0	%		22,750	1.9	%		20,250	1.8	%		17,000	1.5	%		14,500	1.3	%
Broker & national time deposits <= $250		3,470	0.3	%		3,222	0.3	%		3,965	0.3	%		5,953	0.5	%		6,451	0.6	%
Broker & national time deposits > $250		70,020	6.1	%		88,614	7.6	%		93,956	8.2	%		74,485	6.8	%		82,439	7.2	%
Totals	$	904,077	79.1	%	$	911,982	77.8	%	$	896,951	78.4	%	$	896,818	81.0	%	$	913,964	79.6	%
PSB Holdings, Inc.
Deposit Composition
Uninsured Deposits	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)		2023				2023				2023				2023				2022
	$		%		$		%		$		%		$		%		$		%
Non-interest bearing demand	$	69,258	6.1	%	$	79,632	6.8	%	$	80,802	7.1	%	$	62,486	5.6	%	$	89,223	7.7	%
Interest-bearing demand and savings		20,316	1.8	%		22,847	1.9	%		22,604	2.0	%		24,854	2.2	%		49,917	4.3	%
Money market deposits		124,518	10.9	%		133,653	11.4	%		127,871	11.2	%		109,894	10.0	%		84,673	7.4	%
Retail and local time deposits <= $250		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%
Total core deposits		214,092	18.8	%		236,132	20.1	%		231,277	20.3	%		197,234	17.8	%		223,813	19.4	%
Retail and local time deposits > $250		23,633	2.1	%		24,120	2.1	%		14,906	1.3	%		13,541	1.2	%		10,978	1.0	%
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	$	237,725	20.9	%	$	260,252	22.2	%	$	246,183	21.6	%	$	210,775	19.0	%	$	234,791	20.4	%
PSB Holdings, Inc.
Deposit Composition
Total Deposits	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)		2023				2023				2023				2023				2022
	$		%		$		%		$		%		$		%		$		%
Non-interest bearing demand	$	266,829	23.4	%	$	288,765	24.7	%	$	282,153	24.7	%	$	267,836	24.2	%	$	292,338	25.4	%
Interest-bearing demand and savings		338,300	29.6	%		330,467	28.2	%		332,610	29.1	%		354,218	32.0	%		395,771	34.5	%
Money market deposits		267,405	23.4	%		269,563	22.8	%		254,722	22.3	%		238,470	21.5	%		216,073	18.8	%
Retail and local time deposits <= $250		149,145	13.1	%		144,738	12.4	%		140,572	12.3	%		136,090	12.3	%		130,205	11.3	%
Total core deposits		1,021,679	89.5	%		1,033,533	88.1	%		1,010,057	88.4	%		996,614	90.0	%		1,034,387	90.0	%
Retail and local time deposits > $250		46,633	4.1	%		46,870	4.0	%		35,156	3.1	%		30,541	2.8	%		25,478	2.2	%
Broker & national time deposits <= $250		3,470	0.3	%		3,222	0.3	%		3,965	0.3	%		5,953	0.5	%		6,451	0.6	%
Broker & national time deposits > $250		70,020	6.1	%		88,614	7.6	%		93,956	8.2	%		74,485	6.7	%		82,439	7.2	%
Totals	$	1,141,802	100.0	%	$	1,172,239	100.0	%	$	1,143,134	100.0	%	$	1,107,593	100.0	%	$	1,148,755	100.0	%

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
		Quarter ended December 31, 2023								Quarter ended September 30, 2023								Quarter ended December 31, 2022
		Average					Yield /			Average					Yield /			Average					Yield /
		Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)		$	1,094,152		$	14,974	5.43	%		$	1,088,137		$	14,337	5.23	%		$	957,926		$	11,266	4.67	%
Taxable securities			167,366			1,147	2.72	%			173,287			1,114	2.55	%			197,070			1,218	2.45	%
Tax-exempt securities (2)			80,922			673	3.30	%			81,327			675	3.29	%			82,074			682	3.30	%
FHLB stock			6,373			158	9.84	%			6,368			127	7.91	%			2,516			32	5.05	%
Other			11,846			162	5.43	%			8,195			111	5.37	%			14,131			109	3.06	%
Total (2)			1,360,659			17,114	4.99	%			1,357,314			16,364	4.78	%			1,253,717			13,307	4.21	%
Non-interest-earning assets:
Cash and due from banks			16,243								19,299								18,941
Premises and equipment,
net			13,243								13,266								13,123
Cash surrender value ins			23,990								23,840								24,822
Other assets			22,406								23,782								23,548
Allowance for credit
losses			(12,301	)							(11,979	)							(12,375	)
Total		$	1,424,240							$	1,425,522							$	1,321,776
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand
deposits		$	327,036		$	1,296	1.57	%		$	335,214		$	1,198	1.42	%		$	376,075		$	690	0.73	%
Money market deposits			272,087			1,820	2.65	%			255,823			1,489	2.31	%			224,701			601	1.06	%
Time deposits			273,332			2,410	3.50	%			279,971			2,130	3.02	%			241,290			769	1.26	%
FHLB borrowings			133,560			1,349	4.01	%			134,386			1,321	3.90	%			35,522			167	1.87	%
Other borrowings			6,999			54	3.06	%			5,681			51	3.56	%			11,307			38	1.33	%
	Senior sub. notes		4,773			59	4.90	%			4,772			59	4.91	%			4,522			55	4.83	%
Junior sub. debentures			12,909			254	7.81	%			12,883			255	7.85	%			12,806			224	6.94	%
Total			1,030,696			7,242	2.79	%			1,028,730			6,503	2.51	%			906,223			2,544	1.11	%
Non-interest-bearing liabilities:
Demand deposits			275,944								278,616								304,000
Other liabilities			12,540								12,431								11,516
Stockholders' equity			105,060								105,745								100,037
Total		$	1,424,240							$	1,425,522							$	1,321,776
Net interest income					$	9,872							$	9,861							$	10,763
Rate spread							2.20	%							2.27	%							3.10	%
Net yield on interest-earning assets							2.88	%							2.88	%							3.41	%
(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%.

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
	Year ended December 31, 2023								Year ended December 31, 2022
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,043,144		$	53,824	5.16	%		$	927,720		$	39,871	4.30	%
Taxable securities		183,984			4,919	2.67	%			204,630			3,817	1.87	%
Tax-exempt securities (2)		81,481			2,705	3.32	%			82,977			2,720	3.28	%
FHLB stock		5,304			386	7.28	%			2,597			114	4.39	%
Other		9,073			465	5.13	%			20,848			284	1.36	%
Total (2)		1,322,986			62,299	4.71	%			1,238,772			46,806	3.78	%
Non-interest-earning assets:
Cash and due from banks		17,110								18,772
Premises and equipment,
net		13,294								12,988
Cash surrender value ins		24,331								24,591
Other assets		23,136								20,896
Allowance for credit
losses		(12,079	)							(12,347	)
Total	$	1,388,778							$	1,303,672
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand
deposits	$	344,906		$	4,582	1.33	%		$	381,849		$	1,251	0.33	%
Money market deposits		249,079			5,328	2.14	%			223,409			1,210	0.54	%
Time deposits		261,595			7,083	2.71	%			227,570			1,978	0.87	%
FHLB borrowings		116,282			4,417	3.80	%			49,784			779	1.56	%
Other borrowings		7,061			215	3.04	%			7,439			58	0.78	%
Senior sub. notes		4,927			238	4.83	%			3,010			139	4.62	%
Junior sub. debentures		12,870			985	7.65	%			12,768			771	6.04	%
Total		996,720			22,848	2.29	%			905,829			6,186	0.68	%
Non-interest-bearing liabilities:
Demand deposits		274,273								285,261
Other liabilities		12,397								11,330
Stockholders' equity		105,388								101,252
Total	$	1,388,778							$	1,303,672
Net interest income				$	39,451							$	40,620
Rate spread						2.42	%							3.10	%
Net yield on interest-earning assets						2.98	%							3.28	%
(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 fourth quarter earnings per share and net income?

PSB Holdings, Inc. reported fourth-quarter earnings of $0.55 per share on net income of $2.3 million.

What was the company's net interest income for the quarter ended December 31, 2023?

The company's net interest income remained unchanged at $9.6 million for the quarter ended December 31, 2023.

What was the effective tax rate for the quarter ended December 31, 2023?

The effective tax rate declined to 26.7% for the quarter ended December 31, 2023.

What was the tangible book value per common share at December 31, 2023?

Tangible book value per common share increased 7.1% to $23.84 at December 31, 2023.

How much did the company's loans decrease by in the fourth quarter?

Loans decreased $19.5 million in the fourth quarter ended December 31, 2023.

What was the total assets value at December 31, 2023?

Total assets decreased slightly to $1.42 billion at December 31, 2023.

What was the total deposits value at December 31, 2023?

Total deposits decreased $30.4 million to $1.14 billion at December 31, 2023.

What was the company's tangible stockholder equity as a percent of total tangible assets at December 31, 2023?

The company's tangible stockholder equity as a percent of total tangible assets was 7.49% at December 31, 2023.