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