PSB Holdings, Inc. Reports Record Quarterly Earnings of $0.97 Per Share and Record Annual Earnings of $3.31 Per Share; Tangible Book Value Increases to $29.99 Per Share

Written by Customer Service on January 26, 2026. Posted in Earnings Releases And Operating Results.

WAUSAU, Wisc., Jan. 26, 2026 (GLOBE NEWSWIRE) — PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported record fourth quarter earnings ending December 31, 2025 of $0.97 per diluted common share on net income of $3.9 million, compared to $0.86 per diluted common share on net income of $3.5 million during the third quarter ending September 30, 2025, and $0.73 per diluted common share on net income of $3.0 million during the fourth quarter ending December 31, 2024. Record calendar 2025 earnings were $13.5 million, or $3.31 per diluted share compared to 2024 earnings of $9.8 million, or $2.37 per diluted share, up 40% per share.

PSB’s fourth quarter of 2025 operating results reflected the following changes from the third quarter of 2025: (1) a stronger net interest margin as funding costs declined; (2) slightly higher non-interest income from higher mortgage banking income and higher investment and insurance sales commissions; and (3) lower non-interest expenses due to lower benefit plan expenses.

“Our operations continue to benefit from the current interest rate environment, as many of our seasoned loans continue to reprice from historically low yields to higher yields while funding cost pressure has declined with the Federal Reserve’s reductions to the Federal Funds rate. As a result, our net interest margin has returned towards the lower end of our historical range,” stated Scott Cattanach, President and CEO. “We remain optimistic as we look to 2026 and anticipate credit improvement will add more earning assets and enhance interest income in the first half of the year. The Board’s confidence in our ability to consistently generate strong profitability led to their decision to institute quarterly dividend payments going forward, rather than a semi-annual dividend. While our record earnings in fiscal 2025 mark a significant milestone, we remain committed to surpassing these achievements in the periods ahead.”

December 31, 2025, Highlights:

Net interest income increased $387,000 to $11.7 million for the quarter ended December 31, 2025, from $11.3 million for the quarter ended September 30, 2025, due in part to lower deposit and borrowing costs.
Noninterest income increased $156,000 to $2.1 million for the quarter ended December 31, 2025, compared to $1.9 million the prior quarter due to higher mortgage banking income and higher investment and insurance sales commissions.
Noninterest expenses decreased $170,000 to $8.6 million during the quarter ended December 31, 2025 from $8.8 million for the quarter ended September 30, 2025, reflecting lower salary and benefit plan expenses.
Net loans decreased $19.1 million in the fourth quarter ended December 31, 2025, to $1.10 billion compared to September 30, 2025 due to a large borrower ($13.8 million) who sold their business and an expected loan payoff from another borrower for $6.4 million. The loan pipeline continues to remain strong. Allowance for credit losses increased to 1.14% of gross loans.
Non-performing assets increased slightly to $17.3 million, or 1.18% of total assets at December 31, 2025, compared to $17.0 million, or 1.13% the previous quarter. The increase primarily relates to the addition of a restructured residential mortgage loan.
Total deposits decreased $12.1 million to $1.18 billion at December 31, 2025, from $1.19 billion at September 30, 2025. Core deposits decreased $7.3 million due to business outflows for taxes while brokered deposits and time deposits greater than $250,000 decreased $4.8 million.
Return on average tangible common equity was 12.86% for the quarter ended December 31, 2025, compared to 12.14% the prior quarter and 11.07% in the year ago quarter.
Tangible book value per common share was up 15.43% over the past year to $29.99 at December 31, 2025, compared to $25.98 at December 31, 2024. Additionally, PSB paid dividends totaling $0.68 per share during the past year reflecting an earnings payout ratio of 20.37%.

Balance Sheet and Asset Quality Review

Total assets decreased $35.3 million during the fourth quarter to $1.46 billion at December 31, 2025, compared to $1.50 billion at September 30, 2025. Cash and cash equivalents decreased $7.6 million to $29.9 million at December 31, 2025, from $37.5 million at September 30, 2025, as liquid funds were used to pay-off Federal Home Loan Advances and brokered deposits. Investment securities available for sale decreased $6.4 million to $184.3 million at December 31, 2025, from $190.7 million one quarter earlier.

Gross loans receivable decreased $26.2 million to $1.13 billion at December 31, 2025, compared to one quarter earlier. Commercial real estate loans decreased $17.5 million to $551.9 million at December 31, 2025, compared to three months earlier while commercial & industrial loans increased $2.3 million to $139.5 million over the same time period. Commercial construction and development loans decreased $10.7 million to $70.6 million at December 31, 2025, while residential real estate loans decreased $2.5 million from the prior quarter to $340.4 million. Agricultural loans decreased $1.0 million to $11.5 million at December 31, 2025, compared to three months earlier and municipal loans increased $3.0 million over the same time period. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 55.1% of gross loans, followed by residential real estate loans at 30.1% of gross loans, commercial non-real estate loans at 14.4% and consumer loans at 0.4%. The lending pipeline remains strong heading into 2026.

The allowance for credit losses increased to 1.14% of gross loans at December 31, 2025 while annualized net charge-offs to average loans were 0.16% for the quarter ended December 31, 2025. Non-performing assets increased $323,000 to $17.3 million, or 1.18% of total assets at December 31, 2025, up from 1.13% at September 30, 2025. The increase in non-performing assets primarily reflects the addition of a $721,000 restructured residential mortgage loan. Approximately 67% of all non-performing assets consisted of four lending relationships. The largest of these four relationships had a $1.2 million loan payoff occur subsequent to year-end.

Total deposits decreased $12.2 million from the prior quarter to $1.18 billion. The largest decrease in deposits was a decline in money market deposits, which declined $22.2 million during the fourth quarter, partially offset by an increase of $15.3 million in interest-bearings demand and savings deposits. Additionally, brokered deposits decreased $5.0 million during the quarter ended December 31, 2025.

Existing liquidity helped to reduce high costing FHLB advances during the quarter by $28.0 million to $113.0 million at December 31, 2025. Brokered deposits of $5.0 million were also repaid.

Tangible stockholder equity as a percentage of total tangible assets increased to 8.77% at December 31, 2025, compared to 8.34% at September 30, 2025, and 7.76% at December 31, 2024.

Tangible net book value per common share increased $4.01 to $29.99, at December 31, 2025, compared to $25.98 one year earlier, an increase of 15.43% after dividends of $0.68 were paid to shareholders. Relative to the prior quarter’s tangible book value per common share of $29.05, tangible net book value per common share increased primarily due to earnings and an increase in the fair market value of available for sale investment securities. The accumulated other comprehensive loss on the investment portfolio decreased to $13.0 million at December 31, 2025, compared to $14.2 million one quarter earlier and $19.3 million at December 31, 2024.

Operations Review

Net interest income increased to $11.7 million (on a net margin of 3.28%) for the fourth quarter of 2025, from $11.3 million (on a net margin of 3.16%) for the third quarter of 2025, and increased from $10.4 million (on a net margin of 2.96%) for the fourth quarter of 2024. The higher net interest income in the current period primarily relates to a slight increase in loan yields during the quarter and a decrease in the cost of funds. Overall earning asset yields decreased 1 basis point to 5.42% during the fourth quarter of 2025 from 5.43% the prior period and cost of funds decreased 12 basis points to 2.89% compared to 3.01% during the third quarter of 2025. Relative to one year earlier, interest-earning asset yields were up 13 basis points while the overall cost of funds declined 17 basis points.

The decrease in earning asset yields was due to lower yields on investment securities. Taxable security yields were 3.32% for the quarter ended December 31, 2025, compared to 3.38% for the quarter ended September 30, 2025, while a smaller balance of tax-exempt security yields remained at 3.33% for the quarter ended December 31, 2025. Loan yields increased during the fourth quarter of 2025 to 5.94% from 5.93% during the third quarter of 2025.

The decrease in funding costs was due to lower deposit costs, and costs related to FHLB advances. Deposits costs declined 9 basis points to 1.98% for the quarter ended December 31, 2025, from 2.07% the prior quarter. Similarly, FHLB advance costs declined 3 basis points to 4.36% for the fourth quarter from 4.39% the prior quarter.

Total noninterest income increased $156,000 during the fourth quarter of 2025 to $2.1 million. An increase in investment and insurances sales commissions accounted for the majority of the change. The government shutdown delayed the recognition of gains on the sale of SBA 7A loans, reducing other noninterest income during the quarter ended December 31, 2025 compared to the prior quarter.

Noninterest expenses decreased $170,000 to $8.6 million for the fourth quarter of 2025, compared to $8.8 million for the third quarter of 2025, and increased $634,000 from $8.0 million for the fourth quarter of 2024. On a linked quarter basis, salary and benefits expense decreased $287,000 due to lower benefit plan expenses. Occupancy and facilities costs remained at $712,000, data processing and other office operation expenses increased $66,000, foreclosed real estate was sold for a gain of $23,000 during the fourth quarter compared to a loss of $1,000 the previous quarter and advertising and promotion expenses increased $39,000.

Income taxes increased $163,000 during the fourth quarter to $883,000, from $720,000 one quarter earlier on higher pre-tax income levels. The effective tax rate for the quarter ended December 31, 2025, was 18.0% compared to 16.7% for the third quarter ended September 30, 2025.

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. 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, 2025, unaudited, December 31, 2024 derived from audited financial statements

	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
(dollars in thousands, except per share data)		2025			2025			2025			2025			2024

Assets

Cash and due from banks	$	19,697		$	14,221		$	23,022		$	19,628		$	21,414
Interest-bearing deposits		2,262			3,630			2,890			702			3,724
Federal funds sold		7,916			19,641			31,624			2,351			15,360

Cash and cash equivalents		29,875			37,492			57,536			22,681			40,498
Securities available for sale (at fair value)		184,265			190,709			184,320			182,594			189,086
Securities held to maturity (fair values of $76,671, $76,104, $75,016, $77,375, and $79,654 respectively)		81,511			82,195			83,123			85,373			86,748
Equity securities		2,892			2,885			2,885			2,847			2,782
Loans held for sale		180			145			349			734			217
Loans receivable, net (allowance for credit losses of $12,605, $12,686, $12,553, $12,392 and $12,342 respectively)		1,096,035			1,115,137			1,109,296			1,096,422			1,078,204
Accrued interest receivable		5,035			5,023			5,006			5,184			5,042
Foreclosed assets		–			–			–			300			–
Premises and equipment, net		12,972			13,355			13,397			13,522			13,805
Mortgage servicing rights, net		1,689			1,685			1,684			1,717			1,742
Federal Home Loan Bank stock (at cost)		8,090			8,641			9,297			8,825			8,825
Cash surrender value of bank-owned life insurance		25,425			25,242			25,067			24,897			24,732
Core deposit intangible		287			309			330			353			195
Goodwill		3,495			3,495			3,495			3,495			2,541
Other assets		9,721			10,420			10,832			10,828			11,539

TOTAL ASSETS	$	1,461,472		$	1,496,733		$	1,506,617		$	1,459,772		$	1,465,956

Liabilities

Non-interest-bearing deposits	$	278,302		$	278,615		$	277,239		$	245,672		$	259,515
Interest-bearing deposits		898,729			910,571			900,303			884,364			887,834

Total deposits		1,177,031			1,189,186			1,177,542			1,130,036			1,147,349

Federal Home Loan Bank advances		112,950			140,950			165,950			170,250			162,250
Other borrowings		5,397			6,062			6,250			6,343			6,872
Senior subordinated notes		4,788			4,786			4,784			4,783			4,781
Junior subordinated debentures		13,126			13,100			13,075			13,049			13,023
Allowance for credit losses on unfunded commitments		542			622			622			672			672
Accrued expenses and other liabilities		15,967			13,651			15,118			13,554			14,723

Total liabilities		1,329,801			1,368,357			1,383,341			1,338,687			1,349,670

Stockholders’ equity

Preferred stock – no par value:
Authorized – 30,000 shares; Issued – 7,200 shares
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 – 4,023,874, 4,040,538, 4,041,573, 4,084,708, and 4,092,977 shares, respectively		1,830			1,830			1,830			1,830			1,830
Additional paid-in capital		8,727			8,707			8,659			8,608			8,610
Retained earnings		150,556			148,029			144,548			142,277			139,838
Accumulated other comprehensive income (loss), net of tax		(13,000	)		(14,166	)		(15,764	)		(16,692	)		(19,314	)
Treasury stock, at cost – 1,466,924, 1,450,260, 1,449,225, 1,406,090, and 1,397,821 shares, respectively		(23,642	)		(23,224	)		(23,197	)		(22,138	)		(21,878	)

Total stockholders’ equity		131,671			128,376			123,276			121,085			116,286

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,461,472		$	1,496,733		$	1,506,617		$	1,459,772		$	1,465,956

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)		2025			2025		2025			2025			2024			2025			2024

Interest and dividend income:
Loans, including fees	$	16,744		$	16,745	$	16,510		$	15,782		$	15,646		$	65,781		$	61,822
Securities:
Taxable		1,659			1,645		1,566			1,641			1,545			6,511			5,382
Tax-exempt		495			500		506			517			522			2,018			2,091
Other interest and dividends		582			717		332			345			948			1,976			2,255

Total interest and dividend income		19,480			19,607		18,914			18,285			18,661			76,286			71,550

Interest expense:
Deposits		5,976			6,207		5,934			5,884			6,027			24,001			23,852
FHLB advances		1,428			1,707		1,899			1,792			1,890			6,826			7,238
Other borrowings		40			45		48			47			57			180			232
Senior subordinated notes		59			59		58			59			59			235			235
Junior subordinated debentures		248			247		250			248			252			993			1,010

Total interest expense		7,751			8,265		8,189			8,030			8,285			32,235			32,567

Net interest income		11,729			11,342		10,725			10,255			10,376			44,051			38,983
Provision for credit losses		275			138		110			117			–			640			195

Net interest income after provision for credit losses		11,454			11,204		10,615			10,138			10,376			43,411			38,788

Noninterest income:
Service fees		401			363		366			358			362			1,488			1,415
Mortgage banking income		413			363		411			250			414			1,437			1,588
Investment and insurance sales commissions		520			345		335			326			226			1,526			799
Net loss on sale of securities		–			–		–			(1	)		(511	)		(1	)		(1,006	)
Increase in cash surrender value of life insurance		182			176		170			163			166			691			647
Other noninterest income		565			678		814			770			620			2,827			2,627

Total noninterest income		2,081			1,925		2,096			1,866			1,277			7,968			6,070

Noninterest expense:
Salaries and employee benefits		5,159			5,446		4,828			5,302			4,691			20,735			19,752
Occupancy and facilities		712			712		719			786			691			2,929			2,902
Loss (gain) on foreclosed assets		(23	)		1		(58	)		–			–			(80	)		1
Data processing and other office operations		1,188			1,122		1,189			1,201			1,111			4,700			4,284
Advertising and promotion		177			138		189			129			141			633			605
Core deposit intangible amortization		21			22		23			23			17			89			78
Other noninterest expenses		1,402			1,365		1,303			1,528			1,351			5,598			5,251

Total noninterest expense		8,636			8,806		8,193			8,969			8,002			34,604			32,873

Income before provision for income taxes		4,899			4,323		4,518			3,035			3,651			16,775			11,985
Provision for income taxes		883			720		752			473			524			2,828			1,696

Net income	$	4,016		$	3,603	$	3,766		$	2,562		$	3,127		$	13,947		$	10,289
Preferred stock dividends declared	$	122		$	122	$	122		$	122		$	122		$	486		$	486

Net income available to common shareholders	$	3,894		$	3,481	$	3,644		$	2,440		$	3,005		$	13,461		$	9,803
Basic earnings per common share	$	0.97		$	0.86	$	0.90		$	0.60		$	0.73		$	3.32		$	2.37
Diluted earnings per common share	$	0.97		$	0.86	$	0.89		$	0.60		$	0.73		$	3.31		$	2.37

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:		2025			2025			2025			2025			2024

Interest income	$	19,480		$	19,607		$	18,914		$	18,285		$	18,661
Interest expense	$	7,751		$	8,265		$	8,189		$	8,030		$	8,285
Net interest income	$	11,729		$	11,342		$	10,725		$	10,255		$	10,376
Provision for credit losses	$	275		$	138		$	110		$	117		$	–
Other noninterest income	$	2,081		$	1,925		$	2,096		$	1,866		$	1,277
Other noninterest expense	$	8,636		$	8,806		$	8,193		$	8,969		$	8,002
Net income available to common shareholders	$	3,894		$	3,481		$	3,644		$	2,440		$	3,005

Basic earnings per common share (3)	$	0.97		$	0.86		$	0.90		$	0.60		$	0.73
Diluted earnings per common share (3)	$	0.97		$	0.86		$	0.89		$	0.60		$	0.73
Dividends declared per common share (3)	$	0.34		$	–		$	0.34		$	–		$	0.32
Tangible net book value per common share (4)	$	29.99		$	29.05		$	27.77		$	26.94		$	25.98

Semi-annual dividend payout ratio		19.18	%	n/a				22.58	%	n/a				23.27	%
Average common shares outstanding		4,028,368			4,041,393			4,070,721			4,088,824			4,094,360


Balance sheet – average balances:
Loans receivable, net of allowances for credit loss	$	1,107,114		$	1,111,055		$	1,111,004		$	1,091,533		$	1,064,619
Assets	$	1,501,135		$	1,510,272		$	1,480,851		$	1,462,862		$	1,479,812
Deposits	$	1,199,363		$	1,191,002		$	1,142,279		$	1,140,397		$	1,151,450
Stockholders’ equity	$	131,606		$	125,342		$	123,077		$	118,576		$	118,396


Performance ratios:
Return on average assets (1)		1.06	%		0.95	%		1.02	%		0.71	%		0.84	%
Return on average common stockholders’ equity (1)		12.42	%		11.69	%		12.61	%		8.88	%		10.75	%
Return on average tangible common
stockholders’ equity (1)(4)		12.86	%		12.14	%		13.11	%		9.21	%		11.07	%
Net loan charge-offs to average loans (1)		0.16	%		0.00	%		0.00	%		0.02	%		0.02	%
Nonperforming loans to gross loans		1.56	%		1.51	%		1.39	%		1.15	%		0.95	%
Nonperforming assets to total assets		1.18	%		1.13	%		1.04	%		0.89	%		0.71	%
Allowance for credit losses to gross loans		1.14	%		1.12	%		1.12	%		1.12	%		1.13	%
Nonperforming assets to tangible equity
plus the allowance for credit losses (4)		13.10	%		13.17	%		12.64	%		10.71	%		8.85	%
Net interest rate margin (1)(2)		3.28	%		3.16	%		3.09	%		3.03	%		2.96	%
Net interest rate spread (1)(2)		2.53	%		2.42	%		2.34	%		2.33	%		2.23	%
Service fee revenue as a percent of
average demand deposits (1)		0.55	%		0.52	%		0.54	%		0.58	%		0.53	%
Noninterest income as a percent
of gross revenue		9.65	%		8.94	%		9.98	%		9.26	%		6.40	%
Efficiency ratio (2)		61.82	%		65.47	%		63.00	%		72.88	%		67.59	%
Noninterest expenses to average assets (1)		2.28	%		2.31	%		2.22	%		2.49	%		2.15	%
Average stockholders’ equity less accumulated
other comprehensive income (loss) to
average assets		9.59	%		9.20	%		9.31	%		9.22	%		9.08	%
Tangible equity to tangible assets (4)		8.77	%		8.34	%		7.95	%		8.05	%		7.76	%

Stock price information:

High	$	26.30		$	26.00		$	25.70		$	26.50		$	27.90
Low	$	24.34		$	23.30		$	23.65		$	25.60		$	25.00
Last trade value at quarter-end	$	26.10		$	25.50		$	23.89		$	25.70		$	26.50

(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)		2025			2025			2025			2025			2024

Net income	$	4,016		$	3,603		$	3,766		$	2,562		$	3,127

Other comprehensive income, net of tax:

Unrealized gain (loss) on securities available
for sale		1,065			1,550			972			2,551			(3,955	)

Reclassification adjustment for security
loss included in net income		–			–			–			1			404

Accretion of unrealized loss included in net
income on securities available for sale
deferred tax adjustment for Wisconsin
Act 19		–			(26	)		(35	)		–			(76	)

Amortization of unrealized loss included in net
income on securities available for sale
transferred to securities held to maturity		90			90			91			89			90

Unrealized gain (loss) on interest rate swap		18			(2	)		(87	)		(6	)		65

Reclassification adjustment of interest rate
swap settlements included in earnings		(7	)		(15	)		(13	)		(13	)		(27	)


Other comprehensive income (loss)		1,166			1,597			928			2,622			(3,499	)

Comprehensive income (loss)	$	5,182		$	5,200		$	4,694		$	5,184		$	(372	)

PSB Holdings, Inc.
Nonperforming Assets as of:
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(dollars in thousands)		2025			2025			2025			2025			2024

Nonaccrual loans (excluding restructured loans)	$	16,436		$	16,560		$	15,333		$	12,404		$	10,109
Nonaccrual restructured loans		7			10			13			17			18
Restructured loans not on nonaccrual		865			415			295			280			286
Accruing loans past due 90 days or more		–			–			–			–			–

Total nonperforming loans		17,308			16,985			15,641			12,701			10,413
Other real estate owned		–			–			–			300			–

Total nonperforming assets	$	17,308		$	16,985		$	15,641		$	13,001		$	10,413

Nonperforming loans as a % of gross loans receivable		1.56	%		1.51	%		1.39	%		1.15	%		0.95	%
Total nonperforming assets as a % of total assets		1.18	%		1.13	%		1.04	%		0.89	%		0.71	%
Allowance for credit losses as a % of nonperforming loans		72.83	%		74.69	%		80.26	%		97.57	%		118.52	%

PSB Holdings, Inc.
Nonperforming Assets >= $1,000,000 net book value before specific reserves
At December 31, 2025
(dollars in thousands)
		Gross			Specific
Collateral Description	Asset Type	Principal			Reserves

Real estate – Non-Owner Occupied Rental Properties	Nonaccrual		3,863			0
Real estate – Recreational Facility	Nonaccrual		3,785			127
Real estate – Equipment Dealership	Nonaccrual		2,295			558
Real estate – Wood Products	Nonaccrual		1,683			375


Total listed nonperforming assets		$	11,626		$	1,060
Total bank wide nonperforming assets		$	17,308		$	1,595
Listed assets as a % of total nonperforming assets			67	%		66	%

PSB Holdings, Inc.
Loan Composition by Collateral Type
Quarter-ended (dollars in thousands)	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024

Commercial:
Commercial and industrial	$	139,479		$	137,199		$	135,313		$	124,074		$	116,865
Agriculture		11,463			12,443			13,219			11,632			11,568
Municipal		11,317			8,361			12,805			12,878			15,733

Total Commercial		162,259			158,003			161,337			148,584			144,166

Commercial Real Estate:
Commercial real estate		551,899			569,382			566,526			562,901			551,641
Construction and development		70,574			81,278			77,905			87,080			79,377

Total Commercial Real Estate		622,473			650,660			644,431			649,981			631,018

Residential real estate:
Residential		259,573			263,791			266,203			268,490			271,643
Construction and development		36,596			37,475			31,439			26,884			28,959
HELOC		44,219			41,661			39,425			38,364			36,887

Total Residential Real Estate		340,388			342,927			337,067			333,738			337,489

Consumer installment		5,053			4,801			4,886			4,683			5,060

Subtotals – Gross loans		1,130,173			1,156,391			1,147,721			1,136,986			1,117,733
Loans in process of disbursement		(22,178	)		(29,170	)		(26,496	)		(28,752	)		(27,792	)

Subtotals – Disbursed loans		1,107,995			1,127,221			1,121,225			1,108,234			1,089,941
Net deferred loan costs		645			602			624			580			605
Allowance for credit losses		(12,605	)		(12,686	)		(12,553	)		(12,392	)		(12,342	)

Total loans receivable	$	1,096,035		$	1,115,137		$	1,109,296		$	1,096,422		$	1,078,204

PSB Holdings, Inc.
Selected Commercial Real Estate Loans by Purpose
	Dec 31,				Sept 30,				Jun 30,				Mar 31,				Dec 31,
(dollars in thousands)		2025				2025				2025				2025				2024

	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	$	145,717	14.3	%	$	141,896	13.5	%	$	145,523	14.0	%	$	143,674	13.9	%	$	140,087	14.0	%
Industrial and Warehousing		101,581	9.9			100,712	9.6			105,256	10.2			109,366	10.6			103,794	10.4
Retail		27,756	2.7			27,889	2.7			29,407	2.8			29,285	2.8			23,438	2.3
Hotels		25,949	2.6			25,677	2.4			25,299	2.4			25,719	2.5			25,892	2.6
Office		7,028	0.7			7,176	0.7			7,131	0.7			7,254	0.7			6,234	0.6

(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)		2025				2025				2025				2025				2024
	$		%		$		%		$		%		$		%		$		%

Non-interest bearing demand	$	225,025	19.1	%	$	227,448	19.1	%	$	225,921	19.2	%	$	206,562	18.3	%	$	204,167	17.8	%
Interest-bearing demand and savings		323,739	27.5	%		307,505	25.8	%		304,779	25.9	%		314,957	27.9	%		315,900	27.6	%
Money market deposits		142,946	12.1	%		158,455	13.3	%		148,556	12.6	%		144,496	12.7	%		141,024	12.3	%
Retail and local time deposits <= $250		163,398	13.9	%		163,446	13.7	%		165,368	14.0	%		158,066	14.0	%		155,099	13.5	%

Total core deposits		855,108	72.6	%		856,854	71.9	%		844,624	71.7	%		824,081	72.9	%		816,190	71.2	%
Retail and local time deposits > $250		28,000	2.4	%		29,000	2.5	%		28,000	2.4	%		26,750	2.3	%		25,500	2.2	%
Broker & national time deposits <= $250		748	0.1	%		748	0.1	%		748	0.1	%		1,241	0.1	%		1,241	0.1	%
Broker & national time deposits > $250		62,493	5.3	%		67,493	5.7	%		65,917	5.6	%		79,090	7.0	%		56,164	4.9	%

Totals	$	946,349	80.4	%	$	954,095	80.2	%	$	939,289	79.8	%	$	931,162	82.3	%	$	899,095	78.4	%

PSB Holdings, Inc.
Deposit Composition

Uninsured Deposits	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)		2025				2025				2025				2025				2024
	$		%		$		%		$		%		$		%		$		%

Non-interest bearing demand	$	53,277	4.5	%	$	51,167	4.3	%	$	51,318	4.4	%	$	39,110	3.5	%	$	55,348	4.8	%
Interest-bearing demand and savings		17,683	1.5	%		18,644	1.6	%		17,983	1.5	%		17,262	1.5	%		20,934	1.8	%
Money market deposits		110,501	9.4	%		117,184	9.9	%		122,603	10.4	%		123,773	11.0	%		153,334	13.4	%
Retail and local time deposits <= $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%

Total core deposits		181,461	15.4	%		186,995	15.8	%		191,904	16.3	%		180,145	16.0	%		229,616	20.0	%
Retail and local time deposits > $250		49,221	4.2	%		48,096	4.0	%		46,349	3.9	%		18,729	1.7	%		18,638	1.6	%
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	$	230,682	19.6	%	$	235,091	19.8	%	$	238,253	20.2	%	$	198,874	17.7	%	$	248,254	21.6	%


PSB Holdings, Inc.
Deposit Composition

Total Deposits	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)		2025				2025				2025				2025				2024
	$		%		$		%		$		%		$		%		$		%

Non-interest bearing demand	$	278,302	23.6	%	$	278,615	23.4	%	$	277,239	23.6	%	$	245,672	21.8	%	$	259,515	22.6	%
Interest-bearing demand and savings		341,422	29.0	%		326,149	27.4	%		322,762	27.4	%		332,219	29.4	%		336,834	29.4	%
Money market deposits		253,447	21.5	%		275,639	23.2	%		271,159	23.0	%		268,269	23.7	%		294,358	25.7	%
Retail and local time deposits <= $250		163,398	13.9	%		163,446	13.7	%		165,368	14.0	%		158,066	14.0	%		155,099	13.5	%

Total core deposits		1,036,569	88.0	%		1,043,849	87.7	%		1,036,528	88.0	%		1,004,226	88.9	%		1,045,806	91.2	%
Retail and local time deposits > $250		77,221	6.6	%		77,096	6.5	%		74,349	6.3	%		45,479	4.0	%		44,138	3.8	%
Broker & national time deposits <= $250		748	0.1	%		748	0.1	%		748	0.1	%		1,241	0.1	%		1,241	0.1	%
Broker & national time deposits > $250		62,493	5.3	%		67,493	5.7	%		65,917	5.6	%		79,090	7.0	%		56,164	4.9	%

Totals	$	1,177,031	100.0	%	$	1,189,186	100.0	%	$	1,177,542	100.0	%	$	1,130,036	100.0	%	$	1,147,349	100.0	%

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)


	Quarter ended December 31, 2025							Quarter ended September 30, 2025							Quarter ended December 31, 2024
	Average					Yield /		Average					Yield /		Average					Yield /
	Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,119,854		$	16,771	5.94	%	$	1,123,665		$	16,796	5.93	%	$	1,077,242		$	15,693	5.80	%
Taxable securities		198,179			1,659	3.32	%		193,277			1,645	3.38	%		194,272			1,545	3.16	%
Tax-exempt securities (2)		74,660			627	3.33	%		75,419			633	3.33	%		79,475			661	3.31	%
FHLB stock		8,424			206	9.70	%		9,182			201	8.68	%		8,825			227	10.23	%
Other		37,420			376	3.99	%		45,649			516	4.48	%		58,405			721	4.91	%

Total (2)		1,438,537			19,639	5.42	%		1,447,192			19,791	5.43	%		1,418,219			18,847	5.29	%

Non-interest-earning assets:
Cash and due from banks		16,397							16,122							15,500
Premises and equipment,
net		13,239							13,377							14,001
Cash surrender value ins		25,312							25,130							24,625
Other assets		20,390							21,061							20,090
Allowance for credit
losses		(12,740	)						(12,610	)						(12,623	)

Total	$	1,501,135						$	1,510,272						$	1,479,812

Liabilities & stockholders’ equity
Interest-bearing liabilities:
Savings and demand
deposits	$	325,693		$	1,328	1.62	%	$	320,732		$	1,428	1.77	%	$	319,777		$	1,479	1.84	%
Money market deposits		276,259			1,704	2.45	%		281,189			1,746	2.46	%		304,897			1,961	2.56	%
Time deposits		306,350			2,944	3.81	%		310,441			3,033	3.88	%		256,201			2,587	4.02	%
FHLB borrowings		130,048			1,428	4.36	%		154,211			1,707	4.39	%		170,701			1,890	4.40	%
Other borrowings		6,037			40	2.63	%		6,280			45	2.84	%		6,848			57	3.31	%
Senior sub. notes		4,787			59	4.89	%		4,785			59	4.89	%		4,780			59	4.91	%
Junior sub. debentures		13,113			248	7.50	%		13,088			247	7.49	%		13,011			252	7.71	%

Total		1,062,287			7,751	2.89	%		1,090,726			8,265	3.01	%		1,076,215			8,285	3.06	%

Non-interest-bearing liabilities:
Demand deposits		291,061							278,640							270,575
Other liabilities		16,181							15,564							14,626
Stockholders’ equity		131,606							125,342							118,396

Total	$	1,501,135						$	1,510,272						$	1,479,812

Net interest income				$	11,888						$	11,526						$	10,562
Rate spread						2.53	%						2.42	%						2.23	%
Net yield on interest-earning assets						3.28	%						3.16	%						2.96	%

(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, 2025							Year ended December 31, 2024
	Average					Yield/		Average					Yield/
	Balance			Interest		Rate		Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,117,778		$	65,954	5.90	%	$	1,087,816		$	62,085	5.71	%
Taxable securities		195,944			6,511	3.32	%		179,074			5,382	3.01	%
Tax-exempt securities (2)		76,518			2,554	3.34	%		79,735			2,647	3.32	%
FHLB stock		8,905			814	9.14	%		8,024			750	9.35	%
Other		26,777			1,162	4.34	%		29,153			1,505	5.16	%

Total (2)		1,425,922			76,995	5.40	%		1,383,802			72,369	5.23	%

Non-interest-earning assets:
Cash and due from banks		16,078							16,841
Premises and equipment,
net		13,466							13,834
Cash surrender value ins		25,051							24,382
Other assets		20,966							20,911
Allowance for credit
losses		(12,543	)						(12,528	)

Total	$	1,488,940						$	1,447,242

Liabilities & stockholders’ equity
Interest-bearing liabilities:
Savings and demand
deposits	$	325,526		$	5,773	1.77	%	$	331,411		$	6,133	1.85	%
Money market deposits		274,635			6,707	2.44	%		281,828			7,569	2.69	%
Time deposits		295,235			11,521	3.90	%		256,265			10,150	3.96	%
FHLB borrowings		155,477			6,826	4.39	%		167,708			7,238	4.32	%
Other borrowings		6,868			180	2.62	%		7,241			232	3.20	%
Senior sub. notes		4,784			235	4.91	%		4,778			235	4.92	%
Junior sub. debentures		13,075			993	7.59	%		12,972			1,010	7.79	%

Total		1,075,600			32,235	3.00	%		1,062,203			32,567	3.07	%

Non-interest-bearing liabilities:
Demand deposits		272,799							258,173
Other liabilities		15,698							13,475
Stockholders’ equity		124,843							113,391

Total	$	1,488,940						$	1,447,242

Net interest income				$	44,760						$	39,802
Rate spread						2.40	%						2.16	%
Net yield on interest-earning assets						3.14	%						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. Reports Record Quarterly Earnings of $0.97 Per Share and Record Annual Earnings of $3.31 Per Share; Tangible Book Value Increases to $29.99 Per Share

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