PSB Holdings, Inc. Reports Earnings of $0.60 Per Share for Q1 2025; Net Interest Margin Improves For Fourth Consecutive Quarter
WAUSAU, Wis., April 24, 2025 (GLOBE NEWSWIRE) — PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported first quarter earnings ending March 31, 2025 of $0.60 per common share on net income of $2.4 million, compared to $0.73 per common share on net income of $3.0 million during the fourth quarter ending December 31, 2024, and $0.39 per common share on net income of $1.6 million during the first quarter ending March 31, 2024.
PSB’s first quarter 2025 operating results reflected the following changes from the fourth quarter of 2024: (1) a stronger net interest margin as asset yields rose and funding costs declined; (2) the addition of a provision for loan losses due to loan growth; (3) higher non-interest income due to lower losses on the sale of securities and an increase in investment and insurance sale commissions; (4) higher non-interest expenses due to higher salaries and employee benefit expenses associated with commercial loan growth incentives and the addition of wealth management personnel; and (5) loan growth of 2% during the quarter.
“We are encouraged with the steady improvements in our net interest margin while also continuing solid loan growth as customers are seeing value in our relationship. We expect operating expenses to decline in the coming quarter and are cautiously optimistic for earnings growth for the remainder of 2025,” stated Scott Cattanach, President and CEO.
March 31, 2025, Highlights:
- Net interest income decreased $121,000 to $10.3 million for the quarter ended March 31, 2025, from $10.4 million for the quarter ended December 31, 2024, due in part to two fewer days during the quarter. Meanwhile, asset and loan yields increased while funding costs declined slightly.
- Noninterest income increased $589,000 to $1.9 million for the quarter ended March 31, 2025, compared to $1.3 million the prior quarter due to a smaller loss on the sale of securities and an increase in investment and insurance sales commissions.
- Noninterest expenses increased to $967,000 to $9.0 million during the quarter ended March 31, 2025 from $8.0 million for the quarter ended December 31, 2024, reflecting higher salary and benefit expenses associated with growth incentive payments and the addition of wealth management personnel in the purchase of the Larson Financial Group, LLC.
- Loans increased $18.2 million, or 2% in the first quarter ended March 31, 2025, to $1.10 billion largely due to new commercial & industrial, commercial real estate and construction and development loans. Allowance for credit losses was 1.12% of gross loans.
- Non-performing assets increased $2.6 million to $13.0 million, or 0.89% of total assets at March 31, 2025 compared to the previous quarter, from addition of commercial rental real estate units undergoing a sale process.
- Total deposits decreased $17.3 million to $1.13 billion at March 31, 2025 from $1.15 billion at December 31, 2024, with the decrease largely consisting of normal commercial money market deposit outflows and seasonal municipal deposit outflows.
- Return on average tangible common equity was 9.21% for the quarter ended March 31, 2025, compared to 11.07% the prior quarter and 6.57% in the year ago quarter.
- Tangible book value per common share was up 11.3% over the past year to $26.94 at March 31, 2025, compared to $24.21 at March 31, 2024. Additionally, PSB paid dividends totaling $0.64 per share during the past 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 $6.2 million during the first quarter to $1.46 billion at March 31, 2025, compared to $1.47 billion at December 31, 2024. Cash and cash equivalents decreased $17.8 million to $22.7 million at March 31, 2025 from $40.5 million at December 31, 2024 as funds were used to originate new loans and fund the outflow of seasonal municipal deposits and normal commercial customer treasury management operations. Cash and cash equivalents increased $6.8 million from one year earlier. Investment securities available for sale decreased $6.5 million to $182.6 million at March 31, 2025, from $189.1 million one quarter earlier. Total collateralized liquidity available to meet cash demands was approximately $323 million at March 31, 2025, with an additional $323 million that could be raised in a short time frame from the brokered CDs market.
Gross loans receivable increased $19.3 million to $1.14 billion at March 31, 2025, compared to one quarter earlier, due primarily to increased commercial real estate, construction & development and commercial & industrial lending. Commercial real estate loans increased $11.3 million to $562.9 million at March 31, 2025 and gross construction and development lending increased $7.7 million to $87.1 million at March 31, 2025, compared to one quarter earlier. Commercial & industrial loans increased $7.2 million to $124.1 million at March 31, 2025. Offsetting gross loan growth, residential real estate loans decreased $3.7 million from the prior quarter to $333.7 million, municipal loans decreased $2.8 million to $12.9 million and consumer installment loans decreased $0.4 million to $4.7 million. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 57.2% of gross loans, followed by residential real estate loans at 29.3% of gross loans, commercial non-real estate loans at 13.1% and consumer loans at 0.4%.
The allowance for credit losses decreased slightly to 1.12% of gross loans at March 31, 2025, from 1.13% the prior quarter. Annualized net charge-offs to average loans were 0.02% for the quarter ended March 31, 2025. Non-performing assets increased $2.6 million to $13.0 million, or 0.89% of total assets at March 31, 2025 from 0.71% at December 31, 2024. The increase reflects a loan relationship we expect to have $1.5 million in repayment in the next 6 months as collateral undergoes a sales process. No specific reserves have been established on the loan as ample collateral currently appears available. Approximately 80% of the non-performing assets consisted of four loan relationships.
Goodwill and other intangibles increased slightly during the quarter ended March 31, 2025 to $3.8 million from $2.7 million one quarter earlier. The increase in intangibles relates to the acquisition of Larson Financial Group, LLC in January 2025.
Total deposits decreased $17.3 million to $1.13 billion at March 31, 2025, from $1.15 billion at December 31, 2024. The decrease in deposits reflects a $22.9 million decrease in uninsured deposits during the first quarter composed primarily of money market deposits, consisting of normal commercial customer operation outflows, particularly with one customer accounting for $18 million of the decline who reinvested following the sale of their business in 2024. Meanwhile, brokered deposits increased $22.9 million and insured and collateralized deposits increased $5.6 million in the quarter ended March 31, 2025.
At March 31, 2025, non-interest bearing demand deposits decreased to 21.8% of total deposits from 22.6% the prior quarter, while interest-bearing demand and savings deposits remained at 29.4% of deposits.
FHLB advances increased $8.0 million to $170.3 million at March 31, 2025, compared to $162.3 million at December 31, 2024.
Tangible stockholder equity as a percentage of total tangible assets increased to 8.05% at March 31, 2025, compared to 7.76% at December 31, 2024, and 7.60% at March 31, 2024.
Tangible net book value per common share increased $2.73 to $26.94, at March 31, 2025, compared to $24.21 one year earlier, an increase of 11.3% after dividends of $0.64 were paid to shareholders. Relative to the prior quarter’s tangible book value per common share of $25.98, tangible net book value per common share increased primarily due to earnings and an increase in the fair market value in the investment portfolios. The accumulated other comprehensive loss on the investment portfolio was $16.7 million at March 31, 2025, compared to $19.3 million one quarter earlier.
Operations Review
Net interest income decreased to $10.3 million (on a net margin of 3.03%) for the first quarter of 2025, from $10.4 million (on a net margin of 2.96%) for the fourth quarter of 2024, and increased from $9.3 million (on a net margin of 2.80%) for the first quarter of 2024. The lower net interest income in the current period while net margin also increased primarily relates to a lower level of earnings assets during the quarter. Meanwhile, earning asset yields increased to 5.35% during the first quarter of 2025 from 5.29% the prior period and interest bearing deposit and borrowing costs decreased four basis points to 3.02% compared to 3.06% during the fourth quarter of 2024. Relative to one year earlier, earning asset yields were up 23 basis points while interest bearing deposit and borrowing costs increased two basis points.
The increase in earning asset yields was due to higher yields on loan originations, loan renewals, security purchases and security repricing. Loan yields increased during the first quarter of 2025 to 5.82% from 5.80% for the fourth quarter of 2024. Taxable security yields were 3.35% for the quarter ended March 31, 2025, compared to 3.16% for the quarter ended December 31, 2024, while tax-exempt security yields increased to 3.35% for the quarter ended March 31, 2025 from 3.31% the previous quarter. The increase in taxable security yields reflects some security restructuring activity from security sales in the prior quarter more fully realized in the current quarter.
The cost of all deposits increased slightly to 2.09% for the quarter ended March 31, 2025, compared to 2.08% the prior quarter, while the overall cost of funds decreased four basis points to 3.02% from 3.06% during the same time period. Deposit costs for time deposits decreased during the first quarter with time deposits decreasing five basis points to 3.97% and money market deposits decreasing 12 basis points to 2.44%. Savings and demand deposits increased three basis points to 1.87%. FHLB advances increased one basis point to 4.41% for the quarter ended March 31, 2025.
Total noninterest income increased $589,000 during the first quarter of 2025 to $1.9 million, from $1.3 million for the fourth quarter of 2024 due primarily to a lower net loss on sale of securities and increased investment and insurance sales commissions of $100,000. Mortgage banking income decreased to $250,000 in the first quarter from $414,000 the prior quarter while various increases in nominal revenue sources accounted for the remaining increase in noninterest income. At March 31, 2025, the Bank serviced $373.4 million in secondary market residential mortgage loans for others which provide fee income.
Noninterest expenses increased $967,000 to $9.0 million for the first quarter of 2025, compared to $8.0 million for the fourth quarter of 2024, and increased $644,000 from $8.3 million for the first quarter of 2024. On a linked quarter basis, December 2024 quarter salary and benefits expense was reduced from year-end final adjustments to incentive estimates, while March 2025 quarterly salary and benefits increased as commercial growth, and related incentives, were greater than budgeted. The LFG acquisition also increased wage and benefit expense. Intangible amortization increased slightly during the first quarter related to the acquisition. Occupancy and facilities costs increased $95,000, data processing and other office operation expenses increased $90,000 and various other noninterest expenses increased $177,000 during the first quarter ended March 31, 2025.
Taxes decreased $51,000 during the first quarter to $473,000, from $524,000 one quarter earlier. The effective tax rate for the quarter ended March 31, 2025, was 15.6% compared to 14.4% for the fourth quarter ended December 31, 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 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 | ||||||||||||||||
| March 31, 2025, September 30, June 30, and March 31, 2024, unaudited, December 31, 2024 derived from audited financial statements | ||||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | ||||||||||||
| (dollars in thousands, except per share data) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||
| Assets | ||||||||||||||||
| Cash and due from banks | $ | 19,628 | $ | 21,414 | $ | 23,554 | $ | 16,475 | $ | 13,340 | ||||||
| Interest-bearing deposits | 702 | 3,724 | 5,126 | 251 | 105 | |||||||||||
| Federal funds sold | 2,351 | 15,360 | 58,434 | 69,249 | 2,439 | |||||||||||
| Cash and cash equivalents | 22,681 | 40,498 | 87,114 | 85,975 | 15,884 | |||||||||||
| Securities available for sale (at fair value) | 182,594 | 189,086 | 174,911 | 165,177 | 165,566 | |||||||||||
| Securities held to maturity (fair values of $77,375, $79,654, $82,389, $79,993 and $81,234 respectively) | 85,373 | 86,748 | 86,847 | 86,825 | 87,104 | |||||||||||
| Equity securities | 2,847 | 2,782 | 1,752 | 1,661 | 1,474 | |||||||||||
| Loans held for sale | 734 | 217 | – | 2,268 | 865 | |||||||||||
| Loans receivable, net (allowance for credit losses of $12,392, $12,342, $12,598, $12,597 and $12,494 respectively) | 1,096,422 | 1,078,204 | 1,057,974 | 1,074,844 | 1,081,394 | |||||||||||
| Accrued interest receivable | 5,184 | 5,042 | 4,837 | 5,046 | 5,467 | |||||||||||
| Foreclosed assets | 300 | – | – | – | – | |||||||||||
| Premises and equipment, net | 13,522 | 13,805 | 14,065 | 14,048 | 13,427 | |||||||||||
| Mortgage servicing rights, net | 1,717 | 1,742 | 1,727 | 1,688 | 1,657 | |||||||||||
| Federal Home Loan Bank stock (at cost) | 8,825 | 8,825 | 8,825 | 8,825 | 7,006 | |||||||||||
| Cash surrender value of bank-owned life insurance | 24,897 | 24,732 | 24,565 | 24,401 | 24,242 | |||||||||||
| Other intangibles | 353 | 195 | 212 | 229 | 249 | |||||||||||
| Goodwill | 3,495 | 2,541 | 2,541 | 2,541 | 2,541 | |||||||||||
| Other assets | 10,828 | 11,539 | 10,598 | 12,111 | 11,682 | |||||||||||
| TOTAL ASSETS | $ | 1,459,772 | $ | 1,465,956 | $ | 1,475,968 | $ | 1,485,639 | $ | 1,418,558 | ||||||
| Liabilities | ||||||||||||||||
| Non-interest-bearing deposits | $ | 245,672 | $ | 259,515 | $ | 265,078 | $ | 250,435 | $ | 247,608 | ||||||
| Interest-bearing deposits | 884,364 | 887,834 | 874,035 | 901,886 | 865,744 | |||||||||||
| Total deposits | 1,130,036 | 1,147,349 | 1,139,113 | 1,152,321 | 1,113,352 | |||||||||||
| Federal Home Loan Bank advances | 170,250 | 162,250 | 181,250 | 184,900 | 158,250 | |||||||||||
| Other borrowings | 6,343 | 6,872 | 6,128 | 5,775 | 8,096 | |||||||||||
| Senior subordinated notes | 4,783 | 4,781 | 4,779 | 4,778 | 4,776 | |||||||||||
| Junior subordinated debentures | 13,049 | 13,023 | 12,998 | 12,972 | 12,947 | |||||||||||
| Allowance for credit losses on unfunded commitments | 672 | 672 | 477 | 477 | 477 | |||||||||||
| Accrued expenses and other liabilities | 13,554 | 14,723 | 12,850 | 13,069 | 10,247 | |||||||||||
| Total liabilities | 1,338,687 | 1,349,670 | 1,357,595 | 1,374,292 | 1,308,145 | |||||||||||
| 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 – 4,084,708, 4,092,977, 4,105,594, 4,128,382 and 4,147,649 shares, respectively | 1,830 | 1,830 | 1,830 | 1,830 | 1,830 | |||||||||||
| Additional paid-in capital | 8,608 | 8,610 | 8,567 | 8,527 | 8,466 | |||||||||||
| Retained earnings | 142,277 | 139,838 | 138,142 | 135,276 | 134,271 | |||||||||||
| Accumulated other comprehensive income (loss), net of tax | (16,692 | ) | (19,314 | ) | (15,814 | ) | (20,503 | ) | (20,775 | ) | ||||||
| Treasury stock, at cost – 1,406,090, 1,397,821, 1,385,204, 1,362,416 and 1,343,149 shares, respectively | (22,138 | ) | (21,878 | ) | (21,552 | ) | (20,983 | ) | (20,579 | ) | ||||||
| Total stockholders’ equity | 121,085 | 116,286 | 118,373 | 111,347 | 110,413 | |||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,459,772 | $ | 1,465,956 | $ | 1,475,968 | $ | 1,485,639 | $ | 1,418,558 | ||||||
| PSB Holdings, Inc. | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| Quarter Ended | ||||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | ||||||||||||
| (dollars in thousands, except per share data – unaudited) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||
| Interest and dividend income: | ||||||||||||||||
| Loans, including fees | $ | 15,782 | $ | 15,646 | $ | 15,634 | $ | 15,433 | $ | 15,109 | ||||||
| Securities: | ||||||||||||||||
| Taxable | 1,641 | 1,545 | 1,345 | 1,295 | 1,197 | |||||||||||
| Tax-exempt | 517 | 522 | 522 | 521 | 526 | |||||||||||
| Other interest and dividends | 345 | 948 | 699 | 265 | 343 | |||||||||||
| Total interest and dividend income | 18,285 | 18,661 | 18,200 | 17,514 | 17,175 | |||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 5,884 | 6,027 | 5,905 | 5,838 | 6,082 | |||||||||||
| FHLB advances | 1,792 | 1,890 | 2,038 | 1,860 | 1,450 | |||||||||||
| Other borrowings | 47 | 57 | 57 | 58 | 60 | |||||||||||
| Senior subordinated notes | 59 | 59 | 59 | 58 | 59 | |||||||||||
| Junior subordinated debentures | 248 | 252 | 252 | 255 | 251 | |||||||||||
| Total interest expense | 8,030 | 8,285 | 8,311 | 8,069 | 7,902 | |||||||||||
| Net interest income | 10,255 | 10,376 | 9,889 | 9,445 | 9,273 | |||||||||||
| Provision for credit losses | 117 | – | – | 100 | 95 | |||||||||||
| Net interest income after provision for credit losses | 10,138 | 10,376 | 9,889 | 9,345 | 9,178 | |||||||||||
| Noninterest income: | ||||||||||||||||
| Service fees | 358 | 362 | 367 | 350 | 336 | |||||||||||
| Mortgage banking income | 250 | 414 | 433 | 433 | 308 | |||||||||||
| Investment and insurance sales commissions | 326 | 226 | 230 | 222 | 121 | |||||||||||
| Net loss on sale of securities | (1 | ) | (511 | ) | – | – | (495 | ) | ||||||||
| Increase in cash surrender value of life insurance | 163 | 166 | 165 | 159 | 157 | |||||||||||
| Other noninterest income | 770 | 620 | 648 | 742 | 617 | |||||||||||
| Total noninterest income | 1,866 | 1,277 | 1,843 | 1,906 | 1,044 | |||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and employee benefits | 5,302 | 4,691 | 4,771 | 5,167 | 5,123 | |||||||||||
| Occupancy and facilities | 786 | 691 | 757 | 733 | 721 | |||||||||||
| Loss (gain) on foreclosed assets | – | – | 1 | – | – | |||||||||||
| Data processing and other office operations | 1,201 | 1,111 | 1,104 | 1,047 | 1,022 | |||||||||||
| Advertising and promotion | 129 | 141 | 164 | 171 | 129 | |||||||||||
| Amortization of intangibles | 23 | 17 | 17 | 20 | 24 | |||||||||||
| Other noninterest expenses | 1,528 | 1,351 | 1,337 | 1,257 | 1,306 | |||||||||||
| Total noninterest expense | 8,969 | 8,002 | 8,151 | 8,395 | 8,325 | |||||||||||
| Income before provision for income taxes | 3,035 | 3,651 | 3,581 | 2,856 | 1,897 | |||||||||||
| Provision for income taxes | 473 | 524 | 593 | 410 | 169 | |||||||||||
| Net income | $ | 2,562 | $ | 3,127 | $ | 2,988 | $ | 2,446 | $ | 1,728 | ||||||
| Preferred stock dividends declared | $ | 122 | $ | 122 | $ | 122 | $ | 122 | $ | 122 | ||||||
| Net income available to common shareholders | $ | 2,440 | $ | 3,005 | $ | 2,866 | $ | 2,324 | $ | 1,606 | ||||||
| Basic earnings per common share | $ | 0.60 | $ | 0.73 | $ | 0.69 | $ | 0.56 | $ | 0.39 | ||||||
| Diluted earnings per common share | $ | 0.60 | $ | 0.73 | $ | 0.69 | $ | 0.56 | $ | 0.39 | ||||||
| PSB Holdings, Inc. | ||||||||||||||||
| Quarterly Financial Summary | ||||||||||||||||
| (dollars in thousands, except per share data) | Quarter ended | |||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | ||||||||||||
| Earnings and dividends: | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||
| Interest income | $ | 18,285 | $ | 18,661 | $ | 18,200 | $ | 17,514 | $ | 17,175 | ||||||
| Interest expense | $ | 8,030 | $ | 8,285 | $ | 8,311 | $ | 8,069 | $ | 7,902 | ||||||
| Net interest income | $ | 10,255 | $ | 10,376 | $ | 9,889 | $ | 9,445 | $ | 9,273 | ||||||
| Provision for credit losses | $ | 117 | $ | – | $ | – | $ | 100 | $ | 95 | ||||||
| Other noninterest income | $ | 1,866 | $ | 1,277 | $ | 1,843 | $ | 1,906 | $ | 1,044 | ||||||
| Other noninterest expense | $ | 8,969 | $ | 8,002 | $ | 8,151 | $ | 8,395 | $ | 8,325 | ||||||
| Net income available to common shareholders | $ | 2,440 | $ | 3,005 | $ | 2,866 | $ | 2,324 | $ | 1,606 | ||||||
| Basic earnings per common share (3) | $ | 0.60 | $ | 0.73 | $ | 0.69 | $ | 0.56 | $ | 0.39 | ||||||
| Diluted earnings per common share (3) | $ | 0.60 | $ | 0.73 | $ | 0.69 | $ | 0.56 | $ | 0.39 | ||||||
| Dividends declared per common share (3) | $ | – | $ | 0.32 | $ | – | $ | 0.32 | $ | – | ||||||
| Tangible net book value per common share (4) | $ | 26.94 | $ | 25.98 | $ | 26.41 | $ | 24.55 | $ | 24.21 | ||||||
| Semi-annual dividend payout ratio | n/a | 23.27 | % | n/a | 33.61 | % | n/a | |||||||||
| Average common shares outstanding | 4,088,824 | 4,094,360 | 4,132,218 | 4,139,456 | 4,154,702 | |||||||||||
| Balance sheet – average balances: | ||||||||||||||||
| Loans receivable, net of allowances for credit loss | $ | 1,091,533 | $ | 1,064,619 | $ | 1,066,795 | $ | 1,088,013 | $ | 1,081,936 | ||||||
| Assets | $ | 1,462,862 | $ | 1,479,812 | $ | 1,445,613 | $ | 1,433,749 | $ | 1,429,437 | ||||||
| Deposits | $ | 1,140,397 | $ | 1,151,450 | $ | 1,110,854 | $ | 1,111,240 | $ | 1,138,010 | ||||||
| Stockholders’ equity | $ | 118,576 | $ | 118,396 | $ | 114,458 | $ | 110,726 | $ | 109,473 | ||||||
| Performance ratios: | ||||||||||||||||
| Return on average assets (1) | 0.71 | % | 0.84 | % | 0.82 | % | 0.69 | % | 0.49 | % | ||||||
| Return on average common stockholders’ equity (1) | 8.88 | % | 10.75 | % | 10.63 | % | 9.03 | % | 6.32 | % | ||||||
| Return on average tangible common stockholders’ equity (1)(4) | 9.21 | % | 11.07 | % | 10.96 | % | 9.34 | % | 6.57 | % | ||||||
| Net loan charge-offs to average loans (1) | 0.02 | % | 0.02 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||
| Nonperforming loans to gross loans | 1.15 | % | 0.95 | % | 0.97 | % | 1.15 | % | 1.08 | % | ||||||
| Nonperforming assets to total assets | 0.89 | % | 0.71 | % | 0.71 | % | 0.84 | % | 0.83 | % | ||||||
| Allowance for credit losses to gross loans | 1.12 | % | 1.13 | % | 1.18 | % | 1.16 | % | 1.14 | % | ||||||
| Nonperforming assets to tangible equity plus the allowance for credit losses (4) | 10.71 | % | 8.85 | % | 8.71 | % | 11.09 | % | 10.59 | % | ||||||
| Net interest rate margin (1)(2) | 3.03 | % | 2.96 | % | 2.90 | % | 2.84 | % | 2.80 | % | ||||||
| Net interest rate spread (1)(2) | 2.33 | % | 2.23 | % | 2.16 | % | 2.15 | % | 2.12 | % | ||||||
| Service fee revenue as a percent of average demand deposits (1) | 0.58 | % | 0.53 | % | 0.56 | % | 0.56 | % | 0.54 | % | ||||||
| Noninterest income as a percent of gross revenue | 9.26 | % | 6.40 | % | 9.20 | % | 9.81 | % | 5.73 | % | ||||||
| Efficiency ratio (2) | 72.88 | % | 67.59 | % | 68.43 | % | 72.52 | % | 78.93 | % | ||||||
| Noninterest expenses to average assets (1) | 2.49 | % | 2.15 | % | 2.24 | % | 2.35 | % | 2.34 | % | ||||||
| Average stockholders’ equity less accumulated other comprehensive income (loss) to average assets | 9.22 | % | 9.08 | % | 9.06 | % | 9.03 | % | 8.98 | % | ||||||
| Tangible equity to tangible assets (4) | 8.05 | % | 7.76 | % | 7.85 | % | 7.32 | % | 7.60 | % | ||||||
| Stock price information: | ||||||||||||||||
| High | $ | 26.50 | $ | 27.90 | $ | 25.00 | $ | 21.40 | $ | 22.50 | ||||||
| Low | $ | 25.60 | $ | 25.00 | $ | 20.30 | $ | 19.75 | $ | 20.05 | ||||||
| Last trade value at quarter-end | $ | 25.70 | $ | 26.50 | $ | 25.00 | $ | 20.40 | $ | 21.25 | ||||||
| (1) Annualized | ||||||||||||||||
| (2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%. | ||||||||||||||||
| (3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals. | ||||||||||||||||
| (4) Tangible stockholders’ equity excludes goodwill and other intangibles. | ||||||||||||||||
| PSB Holdings, Inc. | ||||||||||||||||
| Consolidated Statements of Comprehensive Income | ||||||||||||||||
| Quarter Ended | ||||||||||||||||
| Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | ||||||||||||
| (dollars in thousands – unaudited) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||
| Net income | $ | 2,562 | $ | 3,127 | $ | 2,988 | $ | 2,446 | $ | 1,728 | ||||||
| Other comprehensive income, net of tax: | ||||||||||||||||
| Unrealized gain (loss) on securities available for sale | 2,551 | (3,955 | ) | 4,738 | 184 | (615 | ) | |||||||||
| Reclassification adjustment for security loss included in net income | 1 | 404 | – | – | 391 | |||||||||||
| 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 | 89 | 90 | 90 | 89 | 91 | |||||||||||
| Unrealized gain (loss) on interest rate swap | (6 | ) | 65 | (101 | ) | 39 | 122 | |||||||||
| Reclassification adjustment of interest rate swap settlements included in earnings | (13 | ) | (27 | ) | (38 | ) | (40 | ) | (41 | ) | ||||||
| Other comprehensive income (loss) | 2,622 | (3,499 | ) | 4,689 | 272 | (87 | ) | |||||||||
| Comprehensive income (loss) | $ | 5,184 | $ | (372 | ) | $ | 7,677 | $ | 2,718 | $ | 1,641 | |||||
| PSB Holdings, Inc. | ||||||||||||||||
| Nonperforming Assets as of: | ||||||||||||||||
| Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | ||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||
| Nonaccrual loans (excluding restructured loans) | $ | 12,404 | $ | 10,109 | $ | 10,116 | $ | 12,184 | $ | 11,498 | ||||||
| Nonaccrual restructured loans | 17 | 18 | 25 | 28 | 30 | |||||||||||
| Restructured loans not on nonaccrual | 280 | 286 | 292 | 299 | 304 | |||||||||||
| Accruing loans past due 90 days or more | – | – | – | – | – | |||||||||||
| Total nonperforming loans | 12,701 | 10,413 | 10,433 | 12,511 | 11,832 | |||||||||||
| Other real estate owned | 300 | – | – | – | – | |||||||||||
| Total nonperforming assets | $ | 13,001 | $ | 10,413 | $ | 10,433 | $ | 12,511 | $ | 11,832 | ||||||
| Nonperforming loans as a % of gross loans receivable | 1.15 | % | 0.95 | % | 0.97 | % | 1.15 | % | 1.08 | % | ||||||
| Total nonperforming assets as a % of total assets | 0.89 | % | 0.71 | % | 0.71 | % | 0.84 | % | 0.83 | % | ||||||
| Allowance for credit losses as a % of nonperforming loans | 97.57 | % | 118.52 | % | 120.75 | % | 100.69 | % | 105.59 | % | ||||||
| PSB Holdings, Inc. | ||||||||
| Nonperforming Assets >= $500,000 net book value before specific reserves | ||||||||
| At March 31, 2025 | ||||||||
| (dollars in thousands) | ||||||||
| Gross | Specific | |||||||
| Collateral Description | Asset Type | Principal | Reserves | |||||
| Real estate – Recreational Facility | Nonaccrual | 4,051 | 148 | |||||
| Real estate – Independent Auto Repair | Nonaccrual | 514 | 0 | |||||
| Real estate – Dealership | Nonaccrual | 2,708 | 560 | |||||
| Real estate – Rental Units | Nonaccrual | 3,077 | 0 | |||||
| Total listed nonperforming assets | $ | 10,350 | $ | 708 | ||||
| Total bank wide nonperforming assets | $ | 13,001 | $ | 1,055 | ||||
| Listed assets as a % of total nonperforming assets | 80 | % | 67 | % | ||||
| PSB Holding, Inc. | ||||||||||||||||
| Loan Composition by Collateral Type | ||||||||||||||||
| Quarter-ended (dollars in thousands) | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |||||||||||
| Commercial: | ||||||||||||||||
| Commercial and industrial | $ | 124,074 | $ | 116,864 | $ | 115,234 | $ | 125,508 | $ | 118,821 | ||||||
| Agriculture | 11,632 | 11,568 | 11,203 | 11,480 | 12,081 | |||||||||||
| Municipal | 12,878 | 15,733 | 12,596 | 11,190 | 28,842 | |||||||||||
| Total Commercial | 148,584 | 144,165 | 139,033 | 148,178 | 159,744 | |||||||||||
| Commercial Real Estate: | ||||||||||||||||
| Commercial real estate | 562,901 | 551,641 | 541,577 | 544,171 | 546,257 | |||||||||||
| Construction and development | 87,080 | 79,377 | 60,952 | 70,540 | 63,375 | |||||||||||
| Total Commercial Real Estate | 649,981 | 631,018 | 602,529 | 614,711 | 609,632 | |||||||||||
| Residential real estate: | ||||||||||||||||
| Residential | 268,490 | 271,643 | 269,954 | 270,944 | 274,300 | |||||||||||
| Construction and development | 26,884 | 28,959 | 34,655 | 36,129 | 34,158 | |||||||||||
| HELOC | 38,364 | 36,887 | 36,734 | 33,838 | 31,357 | |||||||||||
| Total Residential Real Estate | 333,738 | 337,489 | 341,343 | 340,911 | 339,815 | |||||||||||
| Consumer installment | 4,683 | 5,060 | 4,770 | 4,423 | 4,867 | |||||||||||
| Subtotals – Gross loans | 1,136,986 | 1,117,732 | 1,087,675 | 1,108,223 | 1,114,058 | |||||||||||
| Loans in process of disbursement | (28,752 | ) | (27,791 | ) | (17,836 | ) | (21,484 | ) | (20,839 | ) | ||||||
| Subtotals – Disbursed loans | 1,108,234 | 1,089,941 | 1,069,839 | 1,086,739 | 1,093,219 | |||||||||||
| Net deferred loan costs | 580 | 605 | 733 | 702 | 669 | |||||||||||
| Allowance for credit losses | (12,392 | ) | (12,342 | ) | (12,598 | ) | (12,597 | ) | (12,494 | ) | ||||||
| Total loans receivable | $ | 1,096,422 | $ | 1,078,204 | $ | 1,057,974 | $ | 1,074,844 | $ | 1,081,394 | ||||||
| PSB Holding, Inc. | ||||||||||||||||||||
| Selected Commercial Real Estate Loans by Purpose | ||||||||||||||||||||
| Mar 31, | Dec 31, | Sept 30, | June 30, | Mar 31, | ||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 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 | $ | 143,674 | 13.9 | % | $ | 140,087 | 14.0 | % | $ | 140,307 | 14.7 | % | $ | 146,873 | 15.2 | % | $ | 142,001 | 14.4 | % |
| Industrial and Warehousing | 100,494 | 9.7 | 88,297 | 8.8 | 86,818 | 9.1 | 86,025 | 8.9 | 85,409 | 8.6 | ||||||||||
| Retail | 40,779 | 3.9 | 33,991 | 3.4 | 33,020 | 3.5 | 34,846 | 3.6 | 33,177 | 3.4 | ||||||||||
| Hotels | 30,928 | 3.0 | 31,101 | 3.1 | 31,611 | 3.3 | 34,613 | 3.6 | 35,105 | 3.6 | ||||||||||
| Office | 7,254 | 0.7 | 6,234 | 0.6 | 6,378 | 0.7 | 6,518 | 0.7 | 6,655 | 0.7 | ||||||||||
| (1) Percentage of commercial and commercial real estate portfolio and commitments. | ||||||||||||||||||||
| PSB Holdings, Inc. | ||||||||||||||||||||
| Deposit Composition | ||||||||||||||||||||
| Insured and Collateralized Deposits | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| $ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||
| Non-interest bearing demand | $ | 206,562 | 18.3 | % | $ | 204,167 | 17.8 | % | $ | 210,534 | 18.5 | % | $ | 202,343 | 17.5 | % | $ | 199,076 | 17.8 | % |
| Interest-bearing demand and savings | 314,957 | 27.9 | % | 315,900 | 27.6 | % | 305,631 | 26.8 | % | 304,392 | 26.5 | % | 318,673 | 28.7 | % | |||||
| Money market deposits | 118,047 | 10.4 | % | 141,024 | 12.3 | % | 138,376 | 12.2 | % | 137,637 | 12.0 | % | 143,167 | 12.9 | % | |||||
| Retail and local time deposits <= $250 | 158,066 | 14.0 | % | 155,099 | 13.5 | % | 155,988 | 13.7 | % | 149,298 | 13.0 | % | 148,404 | 13.3 | % | |||||
| Total core deposits | 797,632 | 70.6 | % | 816,190 | 71.2 | % | 810,529 | 71.2 | % | 793,670 | 69.0 | % | 809,320 | 72.7 | % | |||||
| Retail and local time deposits > $250 | 26,750 | 2.3 | % | 25,500 | 2.2 | % | 23,500 | 2.1 | % | 22,500 | 2.0 | % | 24,508 | 2.3 | % | |||||
| Broker & national time deposits <= $250 | 1,241 | 0.1 | % | 1,241 | 0.1 | % | 1,241 | 0.1 | % | 1,490 | 0.1 | % | 2,229 | 0.2 | % | |||||
| Broker & national time deposits > $250 | 79,090 | 7.0 | % | 56,164 | 4.9 | % | 56,164 | 4.9 | % | 56,328 | 4.9 | % | 61,752 | 5.5 | % | |||||
| Totals | $ | 904,713 | 80.0 | % | $ | 899,095 | 78.4 | % | $ | 891,434 | 78.3 | % | $ | 873,988 | 76.0 | % | $ | 897,809 | 80.7 | % |
| PSB Holdings, Inc. | ||||||||||||||||||||
| Deposit Composition | ||||||||||||||||||||
| Uninsured Deposits | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| $ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||
| Non-interest bearing demand | $ | 39,110 | 3.5 | % | $ | 55,348 | 4.8 | % | $ | 54,544 | 4.8 | % | $ | 48,092 | 4.1 | % | $ | 48,532 | 4.4 | % |
| Interest-bearing demand and savings | 17,262 | 1.5 | % | 20,934 | 1.8 | % | 18,317 | 1.6 | % | 32,674 | 2.8 | % | 20,535 | 1.8 | % | |||||
| Money market deposits | 150,222 | 13.3 | % | 153,334 | 13.4 | % | 157,489 | 13.8 | % | 177,954 | 15.4 | % | 124,766 | 11.2 | % | |||||
| Retail and local time deposits <= $250 | – | 0.0 | % | – | 0.0 | % | – | 0.0 | % | – | 0.0 | % | – | 0.0 | % | |||||
| Total core deposits | 206,594 | 18.3 | % | 229,616 | 20.0 | % | 230,350 | 20.2 | % | 258,720 | 22.3 | % | 193,833 | 17.4 | % | |||||
| Retail and local time deposits > $250 | 18,729 | 1.7 | % | 18,638 | 1.6 | % | 17,329 | 1.5 | % | 19,613 | 1.7 | % | 21,710 | 1.9 | % | |||||
| 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 | $ | 225,323 | 20.0 | % | $ | 248,254 | 21.6 | % | $ | 247,679 | 21.7 | % | $ | 278,333 | 24.0 | % | $ | 215,543 | 19.3 | % |
| PSB Holdings, Inc. | ||||||||||||||||||||
| Deposit Composition | ||||||||||||||||||||
| Total Deposits | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| $ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||
| Non-interest bearing demand | $ | 245,672 | 21.8 | % | $ | 259,515 | 22.6 | % | $ | 265,078 | 23.3 | % | $ | 250,435 | 21.6 | % | $ | 247,608 | 22.2 | % |
| Interest-bearing demand and savings | 332,219 | 29.4 | % | 336,834 | 29.4 | % | 323,948 | 28.4 | % | 337,066 | 29.3 | % | 339,208 | 30.5 | % | |||||
| Money market deposits | 268,269 | 23.7 | % | 294,358 | 25.7 | % | 295,865 | 26.0 | % | 315,591 | 27.4 | % | 267,933 | 24.1 | % | |||||
| Retail and local time deposits <= $250 | 158,066 | 14.0 | % | 155,099 | 13.5 | % | 155,988 | 13.7 | % | 149,298 | 13.0 | % | 148,404 | 13.3 | % | |||||
| Total core deposits | 1,004,226 | 88.9 | % | 1,045,806 | 91.2 | % | 1,040,879 | 91.4 | % | 1,052,390 | 91.3 | % | 1,003,153 | 90.1 | % | |||||
| Retail and local time deposits > $250 | 45,479 | 4.0 | % | 44,138 | 3.8 | % | 40,829 | 3.6 | % | 42,113 | 3.7 | % | 46,218 | 4.2 | % | |||||
| Broker & national time deposits <= $250 | 1,241 | 0.1 | % | 1,241 | 0.1 | % | 1,241 | 0.1 | % | 1,490 | 0.1 | % | 2,229 | 0.2 | % | |||||
| Broker & national time deposits > $250 | 79,090 | 7.0 | % | 56,164 | 4.9 | % | 56,164 | 4.9 | % | 56,328 | 4.9 | % | 61,752 | 5.5 | % | |||||
| Totals | $ | 1,130,036 | 100.0 | % | $ | 1,147,349 | 100.0 | % | $ | 1,139,113 | 100.0 | % | $ | 1,152,321 | 100.0 | % | $ | 1,113,352 | 100.0 | % |
| PSB Holdings, Inc. | |||||||||||||||||||||||
| Average Balances ($000) and Interest Rates | |||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Quarter ended March 31, 2025 | Quarter ended December 31, 2024 | Quarter ended March 31, 2024 | |||||||||||||||||||||
| Average | Yield / | Average | Yield / | Average | Yield / | ||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||
| Assets | |||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans (1)(2) | $ | 1,103,895 | $ | 15,830 | 5.82 | % | $ | 1,077,242 | $ | 15,693 | 5.80 | % | $ | 1,094,321 | $ | 15,199 | 5.59 | % | |||||
| Taxable securities | 198,426 | 1,641 | 3.35 | % | 194,272 | 1,545 | 3.16 | % | 171,788 | 1,197 | 2.80 | % | |||||||||||
| Tax-exempt securities (2) | 79,282 | 654 | 3.35 | % | 79,475 | 661 | 3.31 | % | 80,434 | 666 | 3.33 | % | |||||||||||
| FHLB stock | 8,825 | 241 | 11.08 | % | 8,825 | 227 | 10.23 | % | 6,499 | 165 | 10.21 | % | |||||||||||
| Other | 8,960 | 104 | 4.71 | % | 58,405 | 721 | 4.91 | % | 12,885 | 178 | 5.56 | % | |||||||||||
| Total (2) | 1,399,388 | 18,470 | 5.35 | % | 1,418,219 | 18,847 | 5.29 | % | 1,365,927 | 17,405 | 5.12 | % | |||||||||||
| Non-interest-earning assets: | |||||||||||||||||||||||
| Cash and due from banks | 16,292 | 15,500 | 17,367 | ||||||||||||||||||||
| Premises and equipment, net | 13,728 | 14,001 | 13,183 | ||||||||||||||||||||
| Cash surrender value ins | 24,795 | 24,625 | 24,144 | ||||||||||||||||||||
| Other assets | 21,021 | 20,090 | 21,201 | ||||||||||||||||||||
| Allowance for credit losses | (12,362 | ) | (12,623 | ) | (12,385 | ) | |||||||||||||||||
| Total | $ | 1,462,862 | $ | 1,479,812 | $ | 1,429,437 | |||||||||||||||||
| Liabilities & stockholders’ equity | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Savings and demand deposits | $ | 339,909 | $ | 1,567 | 1.87 | % | $ | 319,777 | $ | 1,479 | 1.84 | % | $ | 350,497 | $ | 1,672 | 1.92 | % | |||||
| Money market deposits | 280,396 | 1,685 | 2.44 | % | 304,897 | 1,961 | 2.56 | % | 274,186 | 1,897 | 2.78 | % | |||||||||||
| Time deposits | 268,821 | 2,632 | 3.97 | % | 256,201 | 2,587 | 4.02 | % | 264,657 | 2,513 | 3.82 | % | |||||||||||
| FHLB borrowings | 164,968 | 1,792 | 4.41 | % | 170,701 | 1,890 | 4.40 | % | 142,926 | 1,450 | 4.08 | % | |||||||||||
| Other borrowings | 6,321 | 47 | 3.02 | % | 6,848 | 57 | 3.31 | % | 8,554 | 60 | 2.82 | % | |||||||||||
| Senior sub. notes | 4,782 | 59 | 5.00 | % | 4,780 | 59 | 4.91 | % | 4,775 | 59 | 4.97 | % | |||||||||||
| Junior sub. debentures | 13,036 | 248 | 7.72 | % | 13,011 | 252 | 7.71 | % | 12,934 | 251 | 7.81 | % | |||||||||||
| Total | 1,078,233 | 8,030 | 3.02 | % | 1,076,215 | 8,285 | 3.06 | % | 1,058,529 | 7,902 | 3.00 | % | |||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||||
| Demand deposits | 251,271 | 270,575 | 248,670 | ||||||||||||||||||||
| Other liabilities | 14,782 | 14,626 | 12,765 | ||||||||||||||||||||
| Stockholders’ equity | 118,576 | 118,396 | 109,473 | ||||||||||||||||||||
| Total | $ | 1,462,862 | $ | 1,479,812 | $ | 1,429,437 | |||||||||||||||||
| Net interest income | $ | 10,440 | $ | 10,562 | $ | 9,503 | |||||||||||||||||
| Rate spread | 2.33 | % | 2.23 | % | 2.12 | % | |||||||||||||||||
| Net yield on interest-earning assets | 3.03 | % | 2.96 | % | 2.80 | % | |||||||||||||||||
| (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
