WAUSAU, Wis., Jan. 27, 2025 (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, 2024 of $0.73 per common share on net income of $3.0 million, compared to $0.69 per common share on net income of $2.9 million during the third quarter ending September 30, 2024, and $0.55 per common share on net income of $2.3 million during the fourth quarter ending December 31, 2023. For the fiscal year ended December 31, 2024, PSB reported earnings of $2.37 per common share on net income of $9.8 million compared to $2.16 per common share on earnings of $9.1 million for the fiscal year ended December 31, 2023.

PSB’s fourth quarter 2024 operating results reflected the following changes from the third quarter of 2024: (1) higher net interest income supported by a net interest margin increase of six basis points; (2) lower non-interest income due primarily to a loss on the sale of securities; (3) slightly lower non-interest expenses due to lower salaries and employee benefit expenses; and (4) loan growth of 2% during the quarter.

“We are pleased with our results for the fourth quarter and fiscal 2024. We continue to maintain strong asset quality and controlled expenses, and expect to see continued expansion in our net interest margin as loan products continue to reset to higher yields and funding costs stabilize or decline. Additionally, we expect to see stronger loan growth in fiscal 2025. We are focused on delivering strong returns to shareholders through capital growth, payment of dividends and supporting our stock price through stock repurchases, when economically appropriate,” stated Scott Cattanach, President and CEO.

December 31, 2024, Highlights:

  • Net interest income increased to $10.4 million for the quarter ended December 31, 2024, from $9.9 million for the quarter ended September 30, 2024. Asset and loan yields increased while funding costs declined slightly.
  • Noninterest income decreased $566,000 to $1.3 million for the quarter ended December 31, 2024, compared to $1.8 million the prior quarter due primarily to a loss on the sale of securities.
  • Noninterest expenses decreased to $8.0 million during the quarter ended December 31, 2024 from $8.2 million for the quarter ended September 30, 2024, reflecting lower salary and benefit expenses.
  • Loans increased $20.2 million, or 2% in the fourth quarter ended December 31, 2024, to $1.08 billion largely due to new commercial real estate and construction and development loans. Allowance for credit losses was 1.13% of gross loans.
  • Non-performing assets remained unchanged at $10.4 million, or 0.71% of total assets at December 31, 2024 compared to the previous quarter.
  • Total deposits increased slightly to $1.15 billion at December 31, 2024 from $1.14 billion at September 30, 2024, with the increase largely consisting of interest-bearing demand and savings deposits.
  • Return on average tangible common equity was 11.07% for the quarter ended December 31, 2024, compared to 10.96% the prior quarter and 9.64% in the year ago quarter.
  • Tangible book value per common share was up 9.0% over the past year to $25.98 at December 31, 2024, compared to $23.84 at December 31, 2023. Additionally, PSB paid dividends totaling $0.64 per share during 2024, up 6.7% over the prior year.
  • On January 21, 2025, the Bank acquired Larson Financial Group, LLC, a financial advisory company based in Wausau, WI.

Balance Sheet and Asset Quality Review

Total assets decreased $10.0 million during the fourth quarter to $1.47 billion at December 31, 2024, compared to September 30, 2024. Cash and cash equivalents decreased $46.6 million to $40.5 million at December 31, 2024 from $87.1 million at September 30, 2024 as funds were used to originate new loans and pay down FHLB advances. Cash and cash equivalents increased $12.7 million from one year earlier. Investment securities available for sale increased $14.2 million to $189.1 million at December 31, 2024, from $174.9 million one quarter earlier. Total collateralized liquidity available to meet cash demands was approximately $349 million at December 31, 2024, with an additional $354 million that could be raised in a short time frame from the brokered CDs market.

Total loans receivable increased $20.2 million to $1.08 billion at December 31, 2024, compared to one quarter earlier, due primarily to increased commercial non-real estate, commercial real estate and construction lending. Commercial non-real estate loans increased $5.1 million to $144.2 million at December 31, 2024, from $139.0 million one quarter earlier. Commercial real estate loans increased $10.1 million to $551.6 million at December 31, 2024 and construction and development lending increased $18.4 million to $79.4 million at December 31, 2024, compared to one quarter earlier. Offsetting gross loan growth, loans in process of disbursement increased $10.0 million to $27.8 million as new construction and development loans have not been fully funded. Residential real estate loans decreased $3.9 million from the prior quarter to $337.5 million. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 56.5% of gross loans, followed by residential real estate loans at 30.2% of gross loans, commercial non-real estate loans at 12.9% and consumer loans at 0.4%.

The allowance for credit losses decreased slightly to 1.13% of gross loans at December 31, 2024, from 1.18% the prior quarter. Annualized net charge-offs to average loans were 0.02% for the quarter ended December 31, 2024. Non-performing assets remained at 0.71% of total assets at December 31, 2024 and totaled $10.4 million. Approximately 71% of the non-performing assets consisted of three loan relationships. For the eighth consecutive quarter, the Bank did not own any foreclosed real estate.

Total deposits increased $8.2 million to $1.15 billion at December 31, 2024, from $1.14 billion at September 30, 2024. The increase in deposits reflects a $12.9 million increase in interest-bearing demand and savings deposits and a $3.3 million increase in retail and local time deposits greater than $250,000, offset by a $1.5 million decrease in money market deposits, a $5.6 million decrease in non-interest bearing deposits and a $0.9 million decrease in retail and local time deposits less than $250,000.

At December 31, 2024, non-interest bearing demand deposits decreased to 22.6% of total deposits from 23.3% the prior quarter, while interest-bearing demand and savings deposits increased to 29.4% of deposits, compared to 28.4% at September 30, 2024. Uninsured and uncollateralized deposits decreased to 21.6% of total deposits at December 31, 2024, from 21.7% of total deposits at September 30, 2024.

FHLB advances decreased $19.0 million to $162.3 million at December 31, 2024, compared to $181.3 million at September 30, 2024.

Tangible stockholder equity as a percent of total tangible assets was 7.76% at December 31, 2024, compared to 7.85% at September 30, 2024, and 7.49% at December 31, 2023.

Tangible net book value per common share increased $2.14 to $25.98, at December 31, 2024, compared to $23.84 one year earlier, an increase of 9.0% after dividends of $0.64 were paid to shareholders. Relative to the prior quarter’s tangible book value per common share of $26.41, tangible net book value per common share decreased primarily due to a fair market value decrease in the investment portfolios and payment of dividends. The accumulated other comprehensive loss on the investment portfolio was $19.3 million at December 31, 2024, compared to $15.8 million one quarter earlier.

Operations Review

Net interest income increased to $10.4 million (on a net margin of 2.96%) for the fourth quarter of 2024, from $9.9 million (on a net margin of 2.90%) for the third quarter of 2024, and $9.6 million (on a net margin of 2.88%) for the fourth quarter of 2023. Earning asset yields remained flat at 5.29% during the fourth quarter of 2024, while interest bearing deposit and borrowing costs decreased seven basis points to 3.06% compared to 3.13% during the third quarter of 2024. Relative to one year earlier, earning asset yields were up 30 basis points while interest bearing deposit and borrowing costs increased 27 basis points.

The increase in earning asset yields was primarily due to higher yields on loan originations and renewals. Loan yields increased during the fourth quarter of 2024 to 5.80% from 5.78% for the third quarter of 2024. Taxable security yields were 3.16% for the quarter ended December 31, 2024, compared to 3.01% for the quarter ended September 30, 2024, while tax-exempt security yields were flat at 3.31% for the quarter ended December 31, 2024. The increase in taxable security yields reflect the rise in interest rates and security restructuring activity from security sales.

The cost of all deposits declined to 2.08% for the quarter ended December 31, 2024, compared to 2.11% the prior quarter, while the overall cost of funds decreased seven basis points to 3.06% from 3.13% during the same time period. Deposit costs for all deposit categories decreased during the fourth quarter with time deposits decreasing two basis points to 4.02%, money market deposits decreasing 13 basis points to 2.56% and savings and demand deposits decreasing two basis points to 2.56%. FHLB advances also declined four basis points to 4.40% for the quarter ended December 31, 2024.

Total noninterest income decreased during the fourth quarter of 2024 to $1.28 million, from $1.84 million for the third quarter of 2024 due primarily to a net loss on sale of securities. Mortgage banking income decreased slightly to $414,000 in the fourth quarter from $433,000 the prior quarter while various decreases in nominal revenue sources accounted for the remaining decline in noninterest income. At December 31, 2024, the Bank serviced $373.5 million in secondary market residential mortgage loans for others which provide fee income.

Noninterest expenses decreased $149,000 to $8.0 million for the fourth quarter of 2024, compared to $8.2 million for the third quarter of 2024 and increased $644,000 from $7.4 million for the fourth quarter of 2023. Relative to one year earlier, salary and benefit cost increased $447,000, or 10.5% to $4.7 million for the quarter ended December 31, 2024, compared to $4.2 million for the fourth quarter ended December 31, 2023.

Taxes decreased $69,000 during the fourth quarter to $524,000, from $593,000 one quarter earlier. The effective tax rate for the quarter ended December 31, 2024, was 14.4% compared to 16.6% for the third quarter ended September 30, 2024, and 26.7% for the fourth quarter ended December 31, 2023.

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 twelve 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     
December 31, September 30, June 30, and March 31, 2024, unaudited, December 31, 2023 derived from audited financial statements 
           
  Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
(dollars in thousands, except per share data)   2024     2024     2024     2024     2023  
           
Assets          
           
Cash and due from banks $ 21,414   $ 23,554   $ 16,475   $ 13,340   $ 20,887  
Interest-bearing deposits   3,724     5,126     251     105     1,431  
Federal funds sold   15,360     58,434     69,249     2,439     5,462  
           
Cash and cash equivalents   40,498     87,114     85,975     15,884     27,780  
Securities available for sale (at fair value)   189,086     174,911     165,177     165,566     164,024  
Securities held to maturity (fair values of $79,654, $82,389, $79,993, $81,234 and        
  $82,514 respectively)   86,748     86,847     86,825     87,104     87,081  
Equity securities   2,782     1,752     1,661     1,474     1,474  
Loans held for sale   217     –     2,268     865     230  
Loans receivable, net (allowance for credit losses of $12,342, $12,598, $12,597,        
 $12,494 and $12,302 respectively)   1,078,204     1,057,974     1,074,844     1,081,394     1,078,475  
Accrued interest receivable   5,042     4,837     5,046     5,467     5,136  
Foreclosed assets   –     –     –     –     –  
Premises and equipment, net   13,805     14,065     14,048     13,427     13,098  
Mortgage servicing rights, net   1,742     1,727     1,688     1,657     1,664  
Federal Home Loan Bank stock (at cost)   8,825     8,825     8,825     7,006     6,373  
Cash surrender value of bank-owned life insurance   24,732     24,565     24,401     24,242     24,085  
Core deposit intangible   195     212     229     249     273  
Goodwill   2,541     2,541     2,541     2,541     2,541  
Other assets   11,539     10,598     12,111     11,682     11,866  
           
TOTAL ASSETS $ 1,465,956   $ 1,475,968   $ 1,485,639   $ 1,418,558   $ 1,424,100  
           
Liabilities          
           
Non-interest-bearing deposits $ 259,515   $ 265,078   $ 250,435   $ 247,608   $ 266,829  
Interest-bearing deposits   887,834     874,035     901,886     865,744     874,973  
           
   Total deposits   1,147,349     1,139,113     1,152,321     1,113,352     1,141,802  
           
Federal Home Loan Bank advances   162,250     181,250     184,900     158,250     134,000  
Other borrowings   6,872     6,128     5,775     8,096     8,058  
Senior subordinated notes   4,781     4,779     4,778     4,776     4,774  
Junior subordinated debentures   13,023     12,998     12,972     12,947     12,921  
Allowance for credit losses on unfunded commitments   672     477     477     477     577  
Accrued expenses and other liabilities   14,723     12,850     13,069     10,247     12,681  
           
   Total liabilities   1,349,670     1,357,595     1,374,292     1,308,145     1,314,813  
           
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 – 4,092,977, 4,105,594, 4,128,382, 4,147,649 and          
     4,164,735 shares, respectively   1,830     1,830     1,830     1,830     1,830  
Additional paid-in capital   8,610     8,567     8,527     8,466     8,460  
Retained earnings   139,838     138,142     135,276     134,271     132,666  
Accumulated other comprehensive income (loss), net of tax   (19,314 )   (15,814 )   (20,503 )   (20,775 )   (20,689 )
Treasury stock, at cost – 1,397,821, 1,385,204, 1,362,416, 1,343,149 and          
  1,326,063 shares, respectively   (21,878 )   (21,552 )   (20,983 )   (20,579 )   (20,180 )
           
   Total stockholders’ equity   116,286     118,373     111,347     110,413     109,287  
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,465,956   $ 1,475,968   $ 1,485,639   $ 1,418,558   $ 1,424,100  
           
PSB Holdings, Inc.        
Consolidated Statements of Income            
                        Quarter Ended     Years Ended
(dollars in thousands, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,   December
except per share data – unaudited)   2024     2024   2024   2024     2023       2024     2023  
                   
Interest and dividend income:                
   Loans, including fees $ 15,646   $ 15,634 $ 15,433 $ 15,109   $ 14,888     $ 61,822   $ 53,633  
   Securities:                
      Taxable   1,545     1,345   1,295   1,197     1,147       5,382     4,919  
      Tax-exempt   522     522   521   526     532       2,091     2,137  
   Other interest and dividends   948     699   265   343     320       2,255     851  
                   
         Total interest and dividend income   18,661     18,200   17,514   17,175     16,887       71,550     61,540  
                   
Interest expense:                
   Deposits   6,027     5,905   5,838   6,082     5,526       23,852     16,993  
   FHLB advances   1,890     2,038   1,860   1,450     1,349       7,238     4,417  
   Other borrowings   57     57   58   60     54       232     215  
   Senior subordinated notes   59     59   58   59     59       235     238  
   Junior subordinated debentures   252     252   255   251     254       1,010     985  
                   
         Total interest expense   8,285     8,311   8,069   7,902     7,242       32,567     22,848  
                   
Net interest income   10,376     9,889   9,445   9,273     9,645       38,983     38,692  
Provision for credit losses   –     –   100   95     100       195     450  
                   
Net interest income after provision for credit losses     10,376     9,889   9,345   9,178     9,545       38,788     38,242  
                   
Noninterest income:                
   Service fees   362     367   350   336     360       1,415     1,448  
   Mortgage banking income   414     433   433   308     247       1,588     1,228  
   Investment and insurance sales commissions   226     230   222   121     100       799     910  
   Net loss on sale of securities   (511 )   –   –   (495 )   (297 )     (1,006 )   (576 )
   Increase in cash surrender value of life insurance     166     165   159   157     154       647     615  
   Life insurance death benefit   –     –   –   –     –       –     533  
   Other noninterest income   620     648   742   617     540       2,627     2,562  
                   
         Total noninterest income   1,277     1,843   1,906   1,044     1,104       6,070     6,720  
                   
Noninterest expense:                
   Salaries and employee benefits   4,691     4,771   5,167   5,123     4,244       19,752     18,648  
   Occupancy and facilities   691     757   733   721     675       2,902     2,761  
   Loss (gain) on foreclosed assets   –     1   –   –     1       1     (45 )
   Data processing and other office operations   1,111     1,104   1,047   1,022     1,001       4,284     3,785  
   Advertising and promotion   141     164   171   129     244       605     733  
   Core deposit intangible amortization   17     17   20   24     24       78     109  
   Other noninterest expenses   1,351     1,337   1,257   1,306     1,169       5,251     4,557  
                   
        Total noninterest expense   8,002     8,151   8,395   8,325     7,358       32,873     30,548  
                   
Income before provision for income taxes   3,651     3,581   2,856   1,897     3,291       11,985     14,414  
Provision for income taxes   524     593   410   169     878       1,696     4,845  
                   
Net income $ 3,127   $ 2,988 $ 2,446 $ 1,728   $ 2,413     $ 10,289   $ 9,569  
Preferred stock dividends declared $ 122   $ 122 $ 122 $ 122   $ 122     $ 486   $ 486  
                   
Net income available to common shareholders $ 3,005   $ 2,866 $ 2,324 $ 1,606   $ 2,291     $ 9,803   $ 9,083  
Basic earnings per common share $ 0.73   $ 0.69 $ 0.56 $ 0.39   $ 0.55     $ 2.37   $ 2.16  
Diluted earnings per common share $ 0.73   $ 0.69 $ 0.56 $ 0.39   $ 0.55     $ 2.37   $ 2.16  
                   
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:     2024     2024     2024     2024     2023  
               
  Interest income   $ 18,661   $ 18,200   $ 17,514   $ 17,175   $ 16,887  
  Interest expense   $ 8,285   $ 8,311   $ 8,069   $ 7,902   $ 7,242  
  Net interest income   $ 10,376   $ 9,889   $ 9,445   $ 9,273   $ 9,645  
  Provision for credit losses   $ –   $ –   $ 100   $ 95   $ 100  
  Other noninterest income   $ 1,277   $ 1,843   $ 1,906   $ 1,044   $ 1,104  
  Other noninterest expense   $ 8,002   $ 8,151   $ 8,395   $ 8,325   $ 7,358  
  Net income available to common shareholders $ 3,005   $ 2,866   $ 2,324   $ 1,606   $ 2,291  
               
  Basic earnings per common share (3) $ 0.73   $ 0.69   $ 0.56   $ 0.39   $ 0.55  
  Diluted earnings per common share (3) $ 0.73   $ 0.69   $ 0.56   $ 0.39   $ 0.55  
  Dividends declared per common share (3) $ 0.32   $ –   $ 0.32   $ –   $ 0.30  
  Tangible net book value per common share (4) $ 25.98   $ 26.41   $ 24.55   $ 24.21   $ 23.84  
               
  Semi-annual dividend payout ratio     23.27 %   n/a     33.61 %   n/a     38.14 %
  Average common shares outstanding   4,094,360     4,132,218     4,139,456     4,154,702     4,168,924  
               
               
Balance sheet – average balances:            
  Loans receivable, net of allowances for credit loss   $ 1,064,619   $ 1,066,795   $ 1,088,013   $ 1,081,936   $ 1,081,851  
  Assets   $ 1,479,812   $ 1,445,613   $ 1,433,749   $ 1,429,437   $ 1,424,240  
  Deposits   $ 1,151,450   $ 1,110,854   $ 1,111,240   $ 1,138,010   $ 1,148,399  
  Stockholders’ equity   $ 118,396   $ 114,458   $ 110,726   $ 109,473   $ 105,060  
               
               
Performance ratios:            
  Return on average assets (1)     0.84 %   0.82 %   0.69 %   0.49 %   0.67 %
  Return on average common stockholders’ equity (1)     10.75 %   10.63 %   9.03 %   6.32 %   9.29 %
  Return on average tangible common          
    stockholders’ equity (1)(4)     11.07 %   10.96 %   9.34 %   6.57 %   9.64 %
  Net loan charge-offs to average loans (1)   0.02 %   0.00 %   0.00 %   0.00 %   0.00 %
  Nonperforming loans to gross loans     0.95 %   0.97 %   1.15 %   1.08 %   0.54 %
  Nonperforming assets to total assets     0.71 %   0.71 %   0.84 %   0.83 %   0.42 %
  Allowance for credit losses to gross loans   1.13 %   1.18 %   1.16 %   1.14 %   1.13 %
  Nonperforming assets to tangible equity          
    plus the allowance for credit losses (4)   8.85 %   8.71 %   11.09 %   10.59 %   5.38 %
  Net interest rate margin (1)(2)     2.96 %   2.90 %   2.84 %   2.80 %   2.88 %
  Net interest rate spread (1)(2)     2.23 %   2.16 %   2.15 %   2.12 %   2.20 %
  Service fee revenue as a percent of            
    average demand deposits (1)     0.53 %   0.56 %   0.56 %   0.54 %   0.52 %
  Noninterest income as a percent            
    of gross revenue     6.40 %   9.20 %   9.81 %   5.73 %   6.14 %
  Efficiency ratio (2)     67.59 %   68.43 %   72.52 %   78.93 %   67.04 %
  Noninterest expenses to average assets (1)   2.15 %   2.24 %   2.35 %   2.34 %   2.05 %
  Average stockholders’ equity less accumulated          
    other comprehensive income (loss) to          
    average assets     9.08 %   9.06 %   9.03 %   8.98 %   8.88 %
  Tangible equity to tangible assets (4)   7.76 %   7.85 %   7.32 %   7.60 %   7.49 %
               
Stock price information:            
               
  High   $ 27.90   $ 25.00   $ 21.40   $ 22.50   $ 22.30  
  Low   $ 25.00   $ 20.30   $ 19.75   $ 20.05   $ 20.10  
  Last trade value at quarter-end   $ 26.50   $ 25.00   $ 20.40   $ 21.25   $ 22.11  
               
(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)   2024     2024     2024     2024     2023  
               
Net income $ 3,127   $ 2,988   $ 2,446   $ 1,728   $ 2,413  
               
Other comprehensive income:          
               
  Unrealized gain (loss) on securities available for sale, net of tax      (3,955 )   4,738     184     (615 )   5,278  
             
  Reclassification adjustment for security  loss included in net income, net of tax     404     –     –     391     280  
               
  Accretion of unrealized loss included in net  income on securities available for sale deferred tax adjustment for Wisconsin Act 19     (76 )   –     –     (35 )   –  
               
  Amortization of unrealized loss included in net  income on securities available for sale transferred to securities held to maturity, net of tax     90     90     89     91     91  
               
  Unrealized gain (loss) on interest rate swap, net of tax     65     (101 )   39     122     (109 )
               
  Reclassification adjustment of interest rate swap settlements included in earnings, net of tax     (27 )   (38 )   (40 )   (41 )   (39 )
               
               
Other comprehensive income (loss)   (3,499 )   4,689     272     (87 )   5,501  
               
Comprehensive income (loss) $ (372 ) $ 7,677   $ 2,718   $ 1,641   $ 7,914  
               
PSB Holdings, Inc.        
Nonperforming Assets as of:        
  Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
(dollars in thousands)   2024     2024     2024     2024     2023  
           
Nonaccrual loans (excluding restructured loans) $ 10,109   $ 10,116   $ 12,184   $ 11,498   $ 5,596  
Nonaccrual restructured loans   18     25     28     30     34  
Restructured loans not on nonaccrual   286     292     299     304     310  
Accruing loans past due 90 days or more   –     –     –     –     –  
           
Total nonperforming loans   10,413     10,433     12,511     11,832     5,940  
Other real estate owned   –     –     –     –     –  
           
Total nonperforming assets $ 10,413   $ 10,433   $ 12,511   $ 11,832   $ 5,940  
           
Nonperforming loans as a % of gross loans receivable   0.95 %   0.97 %   1.15 %   1.08 %   0.54 %
Total nonperforming assets as a % of total assets   0.71 %   0.71 %   0.84 %   0.83 %   0.42 %
Allowance for credit losses as a % of nonperforming loans   118.52 %   120.75 %   100.69 %   105.59 %   207.10 %
           

PSB Holdings, Inc.     
Nonperforming Assets >= $500,000 net book value before specific reserves    
At December 31, 2024     
(dollars in thousands)     
    Gross Specific
Collateral Description Asset Type Principal Reserves
       
Real estate – Recreational Facility Nonaccrual $ 4,126   $ 151  
Real estate – Independent Auto Repair Nonaccrual   538     –  
Real estate – Dealership Nonaccrual   2,708     560  
       
       
Total listed nonperforming assets   $ 7,372   $ 711  
Total bank wide nonperforming assets   $ 10,413   $ 1,043  
Listed assets as a % of total nonperforming assets     71 %   68 %
       
PSB Holding, Inc.          
Loan Composition by Collateral Type          
Quarter-ended (dollars in thousands) Dec 31,
2024		 Sep 30,
2024		 Jun 30,
2024		 Mar 31,
2024		 Dec 31,
2023
           
Commercial:          
Commercial and industrial $ 116,864   $ 115,234   $ 125,508   $ 118,821   $ 117,207  
Agriculture   11,568     11,203     11,480     12,081     12,304  
Municipal   15,733     12,596     11,190     28,842     31,530  
           
Total Commercial   144,165     139,033     148,178     159,744     161,041  
           
Commercial Real Estate:          
Commercial real estate   551,641     541,577     544,171     546,257     536,209  
Construction and development   79,377     60,952     70,540     63,375     81,701  
           
Total Commercial Real Estate   631,018     602,529     614,711     609,632     617,910  
           
Residential real estate:          
Residential   271,643     269,954     270,944     274,300     274,453  
Construction and development   28,959     34,655     36,129     34,158     33,960  
HELOC   36,887     36,734     33,838     31,357     29,766  
           
Total Residential Real Estate   337,489     341,343     340,911     339,815     338,179  
           
Consumer installment   5,060     4,770     4,423     4,867     4,357  
           
Subtotals – Gross loans   1,117,732     1,087,675     1,108,223     1,114,058     1,121,487  
Loans in process of disbursement   (27,791 )   (17,836 )   (21,484 )   (20,839 )   (31,359 )
           
Subtotals – Disbursed loans   1,089,941     1,069,839     1,086,739     1,093,219     1,090,128  
Net deferred loan costs   605     733     702     669     649  
Allowance for credit losses   (12,342 )   (12,598 )   (12,597 )   (12,494 )   (12,302 )
           
Total loans receivable $ 1,078,204   $ 1,057,974   $ 1,074,844   $ 1,081,394   $ 1,078,475  
           
PSB Holding, Inc.                       
Selected Commercial Real Estate Loans by Purpose                  
  Dec 31,   Sept 30,   June 30,   Mar 31,   Dec 31,
 (dollars in thousands)  2024     2024     2024     2024     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 $ 140,087 14.0 %   $ 140,307 14.7 %   $ 146,873 15.2 %   $ 142,001 14.4 %   $ 132,386 13.2 %
Industrial and Warehousing   88,297 8.8       86,818 9.1       86,025 8.9       85,409 8.6       83,817 8.3  
Retail   33,991 3.4       33,020 3.5       34,846 3.6       33,177 3.4       35,419 3.5  
Hotels   31,101 3.1       31,611 3.3       34,613 3.6       35,105 3.6       36,100 3.6  
Office   6,234 0.6       6,378 0.7       6,518 0.7       6,655 0.7       6,701 0.7  
                             
(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)   2024     2024     2024     2024     2023  
  $ % $ % $ % $ % $ %
                     
Non-interest bearing demand $ 204,167 17.8 % $ 210,534 18.5 % $ 202,343 17.5 % $ 199,076 17.8 % $ 197,571 17.3 %
Interest-bearing demand and savings   315,900 27.6 %   305,631 26.8 %   304,392 26.5 %   318,673 28.7 %   317,984 27.8 %
Money market deposits   141,024 12.3 %   138,376 12.2 %   137,637 12.0 %   143,167 12.9 %   142,887 12.5 %
Retail and local time deposits <= $250   155,099 13.5 %   155,988 13.7 %   149,298 13.0 %   148,404 13.3 %   149,145 13.1 %
                     
Total core deposits   816,190 71.2 %   810,529 71.2 %   793,670 69.0 %   809,320 72.7 %   807,587 70.7 %
Retail and local time deposits > $250   25,500 2.2 %   23,500 2.1 %   22,500 2.0 %   24,508 2.3 %   23,000 2.0 %
Broker & national time deposits <= $250   1,241 0.1 %   1,241 0.1 %   1,490 0.1 %   2,229 0.2 %   3,470 0.3 %
Broker & national time deposits > $250   56,164 4.9 %   56,164 4.9 %   56,328 4.9 %   61,752 5.5 %   70,020 6.1 %
                     
Totals $ 899,095 78.4 % $ 891,434 78.3 % $ 873,988 76.0 % $ 897,809 80.7 % $ 904,077 79.1 %
                     
PSB Holdings, Inc.                    
Deposit Composition                    
                     
Uninsured Deposits December 31, September 30, June 30, March 31, December 31,
(dollars in thousands)   2024     2024     2024     2024     2023  
  $ % $ % $ % $ % $ %
                     
Non-interest bearing demand $ 55,348 4.8 % $ 54,544 4.8 % $ 48,092 4.1 % $ 48,532 4.4 % $ 69,258 6.1 %
Interest-bearing demand and savings   20,934 1.8 %   18,317 1.6 %   32,674 2.8 %   20,535 1.8 %   20,316 1.8 %
Money market deposits   153,334 13.4 %   157,489 13.8 %   177,954 15.4 %   124,766 11.2 %   124,518 10.9 %
Retail and local time deposits <= $250   – 0.0 %   – 0.0 %   – 0.0 %   – 0.0 %   – 0.0 %
                     
Total core deposits   229,616 20.0 %   230,350 20.2 %   258,720 22.3 %   193,833 17.4 %   214,092 18.8 %
Retail and local time deposits > $250   18,638 1.6 %   17,329 1.5 %   19,613 1.7 %   21,710 1.9 %   23,633 2.1 %
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 $ 248,254 21.6 % $ 247,679 21.7 % $ 278,333 24.0 % $ 215,543 19.3 % $ 237,725 20.9 %
                     
                     
PSB Holdings, Inc.                    
Deposit Composition                    
                     
Total Deposits December 31, September 30, June 30, March 31, December 31,
(dollars in thousands)   2024     2024     2024     2024     2023  
  $ % $ % $ % $ % $ %
                     
Non-interest bearing demand $ 259,515 22.6 % $ 265,078 23.3 % $ 250,435 21.6 % $ 247,608 22.2 % $ 266,829 23.4 %
Interest-bearing demand and savings   336,834 29.4 %   323,948 28.4 %   337,066 29.3 %   339,208 30.5 %   338,300 29.6 %
Money market deposits   294,358 25.7 %   295,865 26.0 %   315,591 27.4 %   267,933 24.1 %   267,405 23.4 %
Retail and local time deposits <= $250   155,099 13.5 %   155,988 13.7 %   149,298 13.0 %   148,404 13.3 %   149,145 13.1 %
                     
Total core deposits   1,045,806 91.2 %   1,040,879 91.4 %   1,052,390 91.3 %   1,003,153 90.1 %   1,021,679 89.5 %
Retail and local time deposits > $250   44,138 3.8 %   40,829 3.6 %   42,113 3.7 %   46,218 4.2 %   46,633 4.1 %
Broker & national time deposits <= $250   1,241 0.1 %   1,241 0.1 %   1,490 0.1 %   2,229 0.2 %   3,470 0.3 %
Broker & national time deposits > $250   56,164 4.9 %   56,164 4.9 %   56,328 4.9 %   61,752 5.5 %   70,020 6.1 %
                     
Totals $ 1,147,349 100.0 % $ 1,139,113 100.0 % $ 1,152,321 100.0 % $ 1,113,352 100.0 % $ 1,141,802 100.0 %
                     

PSB Holdings, Inc. 
Average Balances ($000) and Interest Rates         
(dollars in thousands)           
                       
                       
  Quarter ended December 31, 2024   Quarter ended September 30, 2024   Quarter ended December 31, 2023
  Average   Yield /   Average   Yield /   Average   Yield /
  Balance Interest Rate   Balance Interest Rate   Balance Interest Rate
Assets                      
Interest-earning assets:                      
   Loans (1)(2) $ 1,077,242   $ 15,693 5.80 %   $ 1,079,393   $ 15,674 5.78 %   $ 1,094,152   $ 14,974 5.43 %
   Taxable securities   194,272     1,545 3.16 %     177,520     1,345 3.01 %     167,366     1,147 2.72 %
   Tax-exempt securities (2)   79,475     661 3.31 %     79,472     661 3.31 %     80,922     673 3.30 %
   FHLB stock   8,825     227 10.23 %     8,825     176 7.93 %     6,373     158 9.84 %
   Other   58,405     721 4.91 %     36,680     523 5.67 %     11,846     162 5.43 %
                       
   Total (2)   1,418,219     18,847 5.29 %     1,381,890     18,379 5.29 %     1,360,659     17,114 4.99 %
                       
Non-interest-earning assets:                    
   Cash and due from banks   15,500           17,162           16,243      
   Premises and equipment,                    
      net   14,001           14,216           13,243      
   Cash surrender value ins   24,625           24,458           23,990      
   Other assets   20,090           20,485           22,406      
   Allowance for credit                      
      losses   (12,623 )         (12,598 )         (12,301 )    
                       
   Total $ 1,479,812           $ 1,445,613           $ 1,424,240        
                       
Liabilities & stockholders’ equity                    
Interest-bearing liabilities:                    
   Savings and demand                      
      deposits $ 319,777   $ 1,479 1.84 %   $ 323,841   $ 1,515 1.86 %   $ 327,036   $ 1,296 1.57 %
   Money market deposits   304,897     1,961 2.56 %     277,884     1,876 2.69 %     272,087     1,820 2.65 %
   Time deposits   256,201     2,587 4.02 %     247,296     2,514 4.04 %     273,332     2,410 3.50 %
   FHLB borrowings   170,701     1,890 4.40 %     182,414     2,038 4.44 %     133,560     1,349 4.01 %
   Other borrowings   6,848     57 3.31 %     6,702     57 3.38 %     6,999     54 3.06 %
   Senior sub. notes    4,780     59 4.91 %     4,779     59 4.91 %     4,773     59 4.90 %
   Junior sub. debentures   13,011     252 7.71 %     12,985     252 7.72 %     12,909     254 7.81 %
                       
   Total   1,076,215     8,285 3.06 %     1,055,901     8,311 3.13 %     1,030,696     7,242 2.79 %
                       
Non-interest-bearing liabilities:                    
   Demand deposits   270,575           261,833           275,944      
   Other liabilities   14,626           13,421           12,540      
   Stockholders’ equity   118,396           114,458           105,060      
                       
   Total $ 1,479,812           $ 1,445,613           $ 1,424,240        
                       
Net interest income   $ 10,562       $ 10,068       $ 9,872  
Rate spread     2.23 %       2.16 %       2.20 %
Net yield on interest-earning assets   2.96 %       2.90 %       2.88 %
                       
(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, 2024   Year ended December 31, 2023
      Average   Yield/   Average   Yield/
      Balance Interest Rate   Balance Interest Rate
Assets                
Interest-earning assets:              
   Loans (1)(2) $ 1,087,816   $ 62,085 5.71 %   $ 1,043,144   $ 53,824 5.16 %
   Taxable securities   179,074     5,382 3.01 %     183,984     4,919 2.67 %
   Tax-exempt securities (2)   79,735     2,647 3.32 %     81,481     2,705 3.32 %
   FHLB stock   8,024     750 9.35 %     5,304     386 7.28 %
   Other     29,153     1,505 5.16 %     9,073     465 5.13 %
                   
   Total (2)     1,383,802     72,369 5.23 %     1,322,986     62,299 4.71 %
                   
Non-interest-earning assets:              
   Cash and due from banks   16,841           17,110      
   Premises and equipment, net     13,834           13,294      
   Cash surrender value ins   24,382           24,331      
   Other assets   20,911           23,136      
                 
   Allowance for credit losses     (12,528 )         (12,079 )    
                   
   Total   $ 1,447,242           $ 1,388,778        
                   
Liabilities & stockholders’ equity            
Interest-bearing liabilities:              
   Savings and demand deposits   $ 331,411   $ 6,133 1.85 %   $ 344,906   $ 4,582 1.33 %
   Money market deposits   281,828     7,569 2.69 %     249,079     5,328 2.14 %
   Time deposits   256,265     10,150 3.96 %     261,595     7,083 2.71 %
   FHLB borrowings   167,708     7,238 4.32 %     116,282     4,417 3.80 %
   Other borrowings   7,241     232 3.20 %     7,061     215 3.04 %
   Senior sub. notes      4,778     235 4.92 %     4,927     238 4.83 %
   Junior sub. debentures   12,972     1,010 7.79 %     12,870     985 7.65 %
                   
   Total     1,062,203     32,567 3.07 %     996,720     22,848 2.29 %
                   
Non-interest-bearing liabilities:            
   Demand deposits   258,173           274,273      
   Other liabilities   13,475           12,397      
   Stockholders’ equity   113,391           105,388      
                   
   Total   $ 1,447,242           $ 1,388,778        
                   
Net interest income   $ 39,802       $ 39,451  
Rate spread       2.16 %       2.42 %
Net yield on interest-earning assets   2.88 %       2.98 %
                   
(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%.
                   

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