PSB Reports 4th Quarter Earnings of $3.3 Million, or $0.73 Per Share; Strong Mortgage Refinancing Gains Continue; Net Interest Margin Expands; Loan Growth Returns
WAUSAU, Wis., Jan. 25, 2021 (GLOBE NEWSWIRE) — PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank serving Northcentral and Southeastern Wisconsin, reported fourth quarter earnings ending December 31, 2020 of $0.73 per share on net income of $3.3 million, compared to earnings of $0.59 per share on net income of $2.6 million during the September 30, 2020 quarter, and $0.63 per share on net income of $2.8 million during the fourth quarter a year ago. Fourth quarter earnings benefitted from continued high mortgage refinance income, an improved net interest margin due to SBA Paycheck Protection Program fee accretion and lower loan loss provisions relative to prior quarters.
“Our earnings were robust for the fourth quarter despite challenges confronting us related to the pandemic. The low interest rate environment continues to fuel mortgage refinancing activity while presenting challenges with maintaining our historically strong net interest margin. However, our operations reflect a return to loan growth, which should serve to improve asset yields as our asset quality remains stable,” stated Scott Cattanach, President and CEO. “This past quarter we were able to announce a strategic acquisition of Waukesha Bancshares, Inc. in the greater Milwaukee area which we anticipate will remain a growth market for our franchise. The merger, expected to close in the second quarter of 2021, compliments our recent branch expansion into the region,” continued Cattanach.
Loan Accommodations: Loan modifications increased from 44 loan accommodations with a balance of $20.1 million at September 30, 2020 to 48 loans with a balance of $22.3 million, or 2.7% of gross loans at December 31, 2020. All loans receiving deferral were for the second time or more. In the fourth quarter, the bank added a second hotel relationship with a balance of $4.3 million to impaired loans, resulting in $9.2 million of hotel loans listed as impaired. As shown in the table below, “impaired loans” increased $3.0 million, the “substandard risk” loans increased $5.5 million and “watch risk” loans decreased $10.2 million.
| Commercial, Commercial Real Estate, Construction & Development, Agricultural and Government Loans | ||||||||||||||||
| ($000) |
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| Risk Rating | 12/2017 | 12/2018 | 12/2019 | 03/2020 | 06/2020 | 09/2020 | 12/2020 | |||||||||
| Rating 1 | “High Quality” | $ | – | $ | – | $ | – | $ | 71 | $ | 55 | $ | – | $ | – | |
| Rating 2 | “Minimal Risk” | 76,710 | 85,382 | 57,904 | 59,101 | 72,601 | 56,337 | 61,223 | ||||||||
| Rating 3 | “Average Risk” | 292,496 | 323,627 | 349,002 | 324,378 | 374,709 | 391,195 | 390,191 | ||||||||
| Rating 4 | “Acceptable Risk” | 65,024 | 79,271 | 128,932 | 123,296 | 154,302 | 155,738 | 175,400 | ||||||||
| Rating 5 | “Watch Risk” | 18,049 | 15,551 | 15,933 | 33,999 | 54,522 | 46,603 | 36,379 | ||||||||
| Rating 6 | “Substandard Risk” | 500 | 489 | 2,568 | 2,732 | 4,545 | 2,162 | 7,617 | ||||||||
| Rating 7 | “Impaired Loans” | 9,952 | 8,707 | 5,518 | 7,811 | 6,130 | 10,164 | 13,153 | ||||||||
| $ | 462,731 | $ | 513,027 | $ | 559,857 | $ | 551,388 | $ | 666,864 | $ | 662,199 | $ | 683,963 | |||
| Includes undisbursed Construction & Development lines of credit. PPP loan balances are assigned a risk-weighting of “3”. | ||||||||||||||||
| Includes $34.3 million of Hotels with average grade 4.80 and Restaurants of $25.3 million with average grade 3.95. | ||||||||||||||||
Loan Loss Reserve: For the quarter ended December 31, 2020, the bank added provisions for loan losses totaling $675,000, a decline from $1.3 million in the previous quarter and $1.8 million in the first and second quarters of 2020. Since the beginning of the COVID-19 pandemic in the first quarter of 2020, loan loss provisions have remained elevated with reserves related to the expected economic slowdown due to COVID-19 totaling $5.6 million for the current year. Allowance for loan losses were $10.8 million at December 31, 2020 which includes $2.9 million of allowances for loans with risk weightings at 5 to 7 (“Watch and Impaired”) and $8.0 million for loans with risk weightings at 1 to 4 (“Acceptable and Average”). At December 31, 2020, allowance for loan losses totaled 1.30% of gross loans, and 1.50% of proforma gross loans net of PPP loans of $102.0 million and purchased USDA guaranteed loans totaling $5.7 million.
Net Interest Margin Impact: PSB’s net interest margin increased to 3.22% for the quarter ended December 31, 2020 from 3.03% the prior quarter due to the accretion of net PPP fees of $492,000 as $14.9 million PPP loans were repaid by the SBA. In addition, the cost of time deposits declined 25 basis points, to 1.28% in the December 2020 quarter. “Our deposits costs have benefited from both our reduced reliance on funding from higher costing certificates of deposit and wholesale funding, and the declining interest rate environment where maturing certificates of deposit have repriced at lower rates,” said Mark C. Oldenberg, Chief Financial Officer.
Capital Management: At December 31, 2020, PSB’s tangible equity to tangible asset ratio was 9.22% and the bank’s capital was well in-excess of all regulatory requirements. Management expects capital ratios to decline slightly with the integration of the Waukesha Bancshares, Inc. acquisition. PSB did not repurchase any shares during the quarter ending December 31, 2020, although the company announced resumption of its repurchase plan beginning January 2021.
December 31, 2020 Quarterly Financial Highlights (at or for the periods ended December 31, 2020, compared to September 30, 2020 and / or December 31, 2019, as applicable):
- Gains on the sale of mortgage loans totaled $1.4 million for the quarter ended December 31, 2020 which remains elevated to historical levels but lower than $1.8 million the previous quarter. One year earlier, gains on the sale of mortgage loans was $452,000.
- Tangible net book value was $23.43 per share at December 31, 2020, compared to $22.73 per share as of September 30, 2020, and $20.72 per share at December 31, 2019. Over the past year, tangible book value per share grew 13.08%.
- Return on shareholders’ equity was 12.59% for the quarter compared to 10.45% one quarter earlier and 11.98% for the fourth quarter one year earlier. Return on average assets was 1.18% for the fourth quarter of 2020, compared to 0.95% the previous quarter and 1.17% for the fourth quarter one year earlier.
Balance Sheet and Asset Quality Review
Total assets were $1.13 billion as of December 31, 2020, compared to $1.10 billion as of September 30, 2020. Total loans receivable increased by $29.0 million, or 3.7%, to $821.0 million at December 31, 2020 from $792.0 million one quarter earlier. Offsetting this growth, SBA PPP loans decreased $14.9 million to $102.0 million at December 31, 2020 as borrower loans were forgiven and repaid by the SBA PPP guarantee program. Excluding the impact of PPP loan payoffs, loan growth was driven in largely equal parts by residential first mortgages, owner occupied commercial real estate, and non-owner occupied commercial real estate.
The bank intends to participate in the second round of PPP lending and expects to begin originating loans in the 1st Q of 2021. At December 31, 2020, the bank had net unrealized PPP origination fees totaling $2.7 million which are recorded as income when the loan is forgiven or paid off. Commercial/agricultural non-owner-occupied real estate loans represented 29.3% of gross loans at December 31, 2020, followed by commercial/agricultural non-real estate at 25.4%, owner occupied commercial/agricultural real estate loans at 24.1%, residential real estate loans at 20.7%, and consumer loans at 0.5%. Total agricultural related loans represent 0.5% of the total loan portfolio.
The allowance for loan losses decreased to 1.30% of gross loans at December 31, 2020 (1.50% of gross loans net of PPP guaranteed loans and USDA guaranteed loans) compared to 1.31% of gross loans (1.53% of gross loans net of PPP loans) one quarter earlier. Annualized net charge-offs to average loans was 0.16% for the quarter ended December 31, 2020. Non-performing assets increased to 0.90% of total assets at December 31, 2020, compared to 0.85% at September 30, 2020, and 0.55% at December 31, 2019. The increase in non-performing assets at December 31, 2020 primarily relates to the addition of a hotel loan relationship totaling $4.3 million which was downgraded during the quarter. At December 31, 2020, non-performing assets consisted of $2.1 million in non-accrual loans, $1.1 million in non-accrual restructured loans, $5.4 million in restructured loans not on non-accrual and $1.6 million in other real estate owned.
At December 31, 2020, cash and cash equivalents totaled $38.5 million compared to $76.8 million at September 30, 2020 and $49.0 million one year earlier. Cash levels were reduced in the current quarter with the funds invested primarily into mortgage related securities and used to reduce wholesale funding. Investment securities totaled $228.3 million at December 31, 2020 compared to $193.2 million at September 30, 2020 and $174.4 million one year earlier. All investment securities purchased over the past year were considered available for sale and carried at market value.
Foreclosed assets increased to $1.6 million at December 31, 2020 from $1.5 million at September 30, 2020 and $460,000 one year earlier. The recent increase primarily reflects a previously disclosed commercial foreclosure property which is currently listed for sale and carried at an appraised value obtained in May 2020.
Total deposits increased to $932.1 million at December 31, 2020 compared to $900.6 million at September 30, 2020, led by a $41.4 million increase in interest-bearing demand and savings deposits followed by an increase of $9.1 million in money market deposits. Offsetting these increases, higher-costing wholesale deposits declined $12.2 million during the same time period. At December 31, 2020, interest-bearing demand and savings deposits accounted for 35.7% of total deposits, followed by noninterest-bearing demand deposits at 25.4%, money market deposits at 23.8%, and retail and local time deposits at 13.6%. Broker and national time deposits accounted for 1.5% of total deposits at December 31, 2020 versus 2.9% the prior quarter and 4.3% one year earlier. As a result of the ongoing pandemic, the bank has experienced larger average deposits per account and increased mobile banking enrollment and active mobile deposit product usage.
FHLB advances decreased $5.0 million during the fourth quarter ended December 31, 2020 to $62.0 million compared to $67.0 million at September 30, 2020, and other borrowings decreased to $12.2 million from $16.2 million over the same time period. Management elected to prepay $5 million in higher-cost FHLB advances during the current quarter and incurred a $125,000 prepayment penalty which has been recognized in other non-interest expense.
For the quarter ended December 31, 2020, stockholders’ equity increased $3.0 million to $104.4 million, compared to $101.4 million at September 30, 2020. Stockholders’ equity was impacted by earnings, the dividend declared of $0.21 per share and other comprehensive income adjustments, including an increase in unrealized gains on securities available for sale of $533,000 during the current quarter. Tangible net book value per share increased to $23.43 per share, at December 31, 2020, compared to $22.73 per share at September 30, 2020. The bank’s tangible equity to total tangible assets was 9.22% at December 31, 2020 compared to 9.17% at September 30, 2020.
Operations Review
Net interest income totaled $8.4 million (on a net margin of 3.22%) for the fourth quarter of 2020, compared to $7.9 million (on net margin of 3.03%) for the third quarter of 2020 and $8.0 million (on a net margin of 3.53%) for the fourth quarter of 2019. For the year ended December 31, 2020, net interest income was $31.9 million compared to $31.3 million for the same period one year earlier. Compared to the preceding quarter, loans and investment yields increased 10 basis points from 3.50% to 3.60% during the fourth quarter of 2020 while deposit and borrowing costs declined 13 basis points to 0.53% from 0.66% over the same period.
The increase in loan and investment yields was largely due to accretion of loan fees of $492,000 related to PPP loans that have been repaid. Loan yields increased to 4.08% during the quarter from 3.97% during the third quarter of 2020. Loan yields excluding the impacts of PPP loans, were 4.28% and 4.47% in the December 2020 and September 2020 quarters, respectively. Net interest margin excluding the impacts of PPP loans, were 3.28% and 3.28% in the December 2020 and September 2020 quarters, respectively. Continued recognition of PPP loan fee income is expected to maintain or move reported net interest margin higher during the first half of 2021 before net margin declines as the first round PPP program fees are largely recognized.
The cost of interest-bearing liabilities decreased during the quarter, reflecting lower rates associated with money market accounts and time deposits. Deposit costs decreased to $657,000 for the fourth quarter of 2020 from $833,000 the previous quarter. Interest costs on borrowings declined $74,000 to $354,000 for the fourth quarter of 2020 from $428,000 the previous quarter. With the recent prepayment of some FHLB advances, borrowing cost should reflect continued decreases in the March 2021 quarter.
The provision for loan losses totaled $675,000 during the fourth quarter of 2020 compared to $1.3 million for the prior linked quarter. The provision primarily relates to reserves taken related to the growth in the loan portfolio, specific reserves on classified assets and general reserves in anticipation of a slowing economy due to the COVID-19 pandemic. For the year ended December 31, 2020, provision for loan losses totaled $5.6 million compared to $850,000 for the same period ended December 31, 2019. Loan loss provisions in 2021 are expected to remain elevated but lower than recorded during 2020.
Total noninterest income for the fourth quarter of 2020 increased to $3.0 million from $2.9 million for the third quarter of 2020 due in part to higher security gains and mortgage loan servicing income, partially offset by lower gains on the sale of mortgage loans. Gains on sale of mortgage loans decreased to $1.4 million for the fourth quarter from $1.8 million in the third quarter of 2020 and remained at historically high levels as lower long-term U.S. Treasury rates have spurred mortgage refinance activity by borrowers. We expect mortgage originations to ease in the first quarter of 2021 as the wave of refinancing requests appears to have peaked with seasonal factors and the recent rise in the 10-year Treasury Notes. Mortgage loan servicing income was $104,000 for the fourth quarter compared to a loss of $79,000 the previous quarter.
Deposit and service fee income in the fourth quarter were similar to the prior quarter at $352,000 for the three months ended December 31, 2020 compared to $344,000 for the prior three-month period. Net gains on the sale of securities were $149,000 for the fourth quarter of 2020 compared to $38,000 for the third quarter of 2020 and $71,000 for the quarter one year earlier. Commissions on customer investment and insurance sales increased to $391,000 from $301,000 the prior quarter as sales activity picked up and advisory fees tied to rising market values increased. At December 31, 2020, the bank had wealth assets under management totaling $269.0 million compared to $244.5 million at September 30, 2020 and $248.5 million at December 31, 2019. For the fourth quarter ended December 31, 2020, other noninterest income was $488,000 compared to $465,000 the prior quarter.
For the year ended December 31, 2020, total noninterest income was $11.4 million compared to $7.7 million for the year ended December 31, 2019. The one-year increase in 2020 was largely due to larger gains on the sale of mortgage loans.
Noninterest expense was $6.5 million for the fourth quarter of 2020, compared to $6.1 million for the third quarter of 2020. For the fourth quarter of 2020, noninterest expense was higher due to higher salaries and employee benefits costs related to variable incentive compensation. Salary and employee benefit expenses were $4.1 million for the fourth quarter compared to $3.5 million in the third quarter of 2020. The fourth quarter of 2020 benefited from a net gain on foreclosed assets of $218,000 compared to a net loss of $36,000 one quarter earlier. Data processing and other office expenses decreased to $568,000 for the quarter ended December 31, 2020 from $743,000 for the prior quarter. For the year ended December 31, 2020, total noninterest expense was $23.7 million compared to $23.3 million one year earlier, up 1.7%.
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 nine full-service banking locations in Marathon, Oneida, Vilas and Milwaukee counties and a loan production office in Stevens Point, Wisconsin. 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
Certain matters discussed in this news release, including without limitation those relating to potential loan and deposit growth, future profits, changes in noninterest income and expenses, pro-forma impacts to income from non-recurring or unusual income and expense items, and future interest rates, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in this release. Among other things, these risks and uncertainties include the strength of the economy, the effects of government policies, including, in particular, interest rate policies, and other risks and assumptions. Risk and uncertainties also include the effect of the COVID-19 pandemic, including the bank’s credit quality and business operations, as well as its impact on general economic and financial market conditions. PSB Holdings, Inc. assumes no obligation to update or supplement forward-looking statements that become untrue because of events subsequent to this press release.
| 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: | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||
| Interest income | $ | 9,442 | $ | 9,155 | $ | 9,291 | $ | 9,726 | $ | 9,988 | ||||||
| Interest expense | $ | 1,011 | $ | 1,261 | $ | 1,528 | $ | 1,935 | $ | 2,019 | ||||||
| Net interest income | $ | 8,431 | $ | 7,894 | $ | 7,763 | $ | 7,791 | $ | 7,969 | ||||||
| Provision for loan losses | $ | 675 | $ | 1,300 | $ | 1,800 | $ | 1,800 | $ | 150 | ||||||
| Other noninterest income | $ | 2,991 | $ | 2,929 | $ | 3,138 | $ | 2,355 | $ | 1,839 | ||||||
| Other noninterest expense | $ | 6,461 | $ | 6,074 | $ | 4,879 | $ | 6,330 | $ | 5,947 | ||||||
| Net income | $ | 3,252 | $ | 2,637 | $ | 3,190 | $ | 1,610 | $ | 2,813 | ||||||
| Basic earnings per share (3) | $ | 0.73 | $ | 0.59 | $ | 0.72 | $ | 0.36 | $ | 0.63 | ||||||
| Diluted earnings per share (3) | $ | 0.73 | $ | 0.59 | $ | 0.72 | $ | 0.36 | $ | 0.63 | ||||||
| Dividends declared per share (3) | $ | 0.21 | $ | – | $ | 0.21 | $ | – | $ | 0.20 | ||||||
| Tangible net book value per share (4) | $ | 23.43 | $ | 22.73 | $ | 21.97 | $ | 20.89 | $ | 20.72 | ||||||
| Semi-annual dividend payout ratio | 15.88 | % | n/a | 14.50 | % | n/a | 15.04 | % | ||||||||
| Average common shares outstanding | 4,452,287 | 4,452,287 | 4,453,225 | 4,464,956 | 4,471,173 | |||||||||||
| Balance sheet – average balances: | ||||||||||||||||
| Loans receivable, net of allowances for loss | $ | 807,182 | $ | 800,611 | $ | 786,785 | $ | 705,333 | $ | 700,469 | ||||||
| Assets | $ | 1,100,064 | $ | 1,099,402 | $ | 1,067,466 | $ | 963,191 | $ | 951,409 | ||||||
| Deposits | $ | 896,427 | $ | 882,682 | $ | 855,155 | $ | 761,268 | $ | 745,455 | ||||||
| Stockholders’ equity | $ | 102,790 | $ | 100,436 | $ | 95,909 | $ | 94,735 | $ | 93,189 | ||||||
| Performance ratios: | ||||||||||||||||
| Return on average assets (1) | 1.18 | % | 0.95 | % | 1.20 | % | 0.67 | % | 1.17 | % | ||||||
| Return on average stockholders’ equity (1) | 12.59 | % | 10.45 | % | 13.38 | % | 6.84 | % | 11.98 | % | ||||||
| Average stockholders’ equity less accumulated other comprehensive income (loss) to average assets | 9.00 | % | 8.85 | % | 8.83 | % | 9.75 | % | 9.68 | % | ||||||
| Net loan charge-offs to average loans (1) | 0.16 | % | 0.00 | % | 0.25 | % | 0.49 | % | 0.01 | % | ||||||
| Nonperforming loans to gross loans | 1.03 | % | 0.98 | % | 0.47 | % | 0.67 | % | 0.68 | % | ||||||
| Nonperforming assets to total assets | 0.90 | % | 0.85 | % | 0.49 | % | 0.54 | % | 0.55 | % | ||||||
| Allowance for loan losses to gross loans | 1.30 | % | 1.31 | % | 1.13 | % | 1.10 | % | 0.97 | % | ||||||
| Nonperforming assets to tangible equity plus the allowance for loan losses (4) | 8.96 | % | 8.50 | % | 5.11 | % | 5.24 | % | 5.45 | % | ||||||
| Net interest rate margin (1)(2) | 3.22 | % | 3.03 | % | 3.09 | % | 3.45 | % | 3.53 | % | ||||||
| Net interest rate spread (1)(2) | 3.07 | % | 2.84 | % | 2.85 | % | 3.20 | % | 3.24 | % | ||||||
| Service fee revenue as a percent of average demand deposits (1) | 0.59 | % | 0.59 | % | 0.49 | % | 1.04 | % | 1.00 | % | ||||||
| Noninterest income as a percent of gross revenue | 24.06 | % | 24.24 | % | 25.25 | % | 19.49 | % | 15.55 | % | ||||||
| Efficiency ratio (2) | 55.87 | % | 55.41 | % | 44.23 | % | 61.59 | % | 59.90 | % | ||||||
| Noninterest expenses to average assets (1) | 2.34 | % | 2.20 | % | 1.84 | % | 2.64 | % | 2.48 | % | ||||||
| Tangible equity to tangible assets | 9.22 | % | 9.17 | % | 8.95 | % | 9.59 | % | 9.50 | % | ||||||
| Stock price information: | ||||||||||||||||
| High | $ | 23.00 | $ | 18.80 | $ | 24.75 | $ | 28.25 | $ | 28.25 | ||||||
| Low | $ | 17.20 | $ | 17.36 | $ | 18.55 | $ | 19.50 | $ | 26.00 | ||||||
| Last trade value at quarter-end | $ | 20.57 | $ | 18.00 | $ | 18.55 | $ | 24.75 | $ | 27.50 | ||||||
| (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 intangible assets. | ||||||||||||||||
| PSB Holdings, Inc. | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| Quarter Ended | ||||||||||||||||
| (dollars in thousands, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |||||||||||
| except per share data – unaudited) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||
| Interest and dividend income: | ||||||||||||||||
| Loans, including fees | $ | 8,371 | $ | 8,068 | $ | 8,175 | $ | 8,445 | $ | 8,691 | ||||||
| Securities: | ||||||||||||||||
| Taxable | 542 | 564 | 622 | 733 | 768 | |||||||||||
| Tax-exempt | 489 | 474 | 446 | 431 | 387 | |||||||||||
| Other interest and dividends | 40 | 49 | 48 | 117 | 142 | |||||||||||
| Total interest and dividend income | 9,442 | 9,155 | 9,291 | 9,726 | 9,988 | |||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 657 | 833 | 1,080 | 1,482 | 1,544 | |||||||||||
| FHLB advances | 228 | 304 | 323 | 320 | 328 | |||||||||||
| Other borrowings | 6 | 5 | 6 | 14 | 26 | |||||||||||
| Senior subordinated notes | 29 | 28 | 28 | 28 | 29 | |||||||||||
| Junior subordinated debentures | 91 | 91 | 91 | 91 | 92 | |||||||||||
| Total interest expense | 1,011 | 1,261 | 1,528 | 1,935 | 2,019 | |||||||||||
| Net interest income | 8,431 | 7,894 | 7,763 | 7,791 | 7,969 | |||||||||||
| Provision for loan losses | 675 | 1,300 | 1,800 | 1,800 | 150 | |||||||||||
| Net interest income after provision for loan losses | 7,756 | 6,594 | 5,963 | 5,991 | 7,819 | |||||||||||
| Noninterest income: | ||||||||||||||||
| Service fees | 352 | 344 | 278 | 391 | 411 | |||||||||||
| Gain on sale of mortgage loans | 1,401 | 1,752 | 1,747 | 987 | 452 | |||||||||||
| Mortgage loan servicing, net | 104 | (79 | ) | (165 | ) | (23 | ) | 57 | ||||||||
| Investment and insurance sales commissions | 391 | 301 | 259 | 349 | 301 | |||||||||||
| Net gain on sale of securities | 149 | 38 | 194 | 123 | 71 | |||||||||||
| Increase in cash surrender value of life insurance | 106 | 108 | 104 | 104 | 104 | |||||||||||
| Other noninterest income | 488 | 465 | 721 | 424 | 443 | |||||||||||
| Total noninterest income | 2,991 | 2,929 | 3,138 | 2,355 | 1,839 | |||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and employee benefits | 4,084 | 3,526 | 2,583 | 3,819 | 3,523 | |||||||||||
| Occupancy and facilities | 511 | 566 | 508 | 544 | 506 | |||||||||||
| Loss (gain) on foreclosed assets | (218 | ) | 36 | 23 | 71 | 69 | ||||||||||
| Data processing and other office operations | 568 | 743 | 675 | 644 | 739 | |||||||||||
| Advertising and promotion | 172 | 77 | 94 | 141 | 182 | |||||||||||
| FDIC insurance premiums | 82 | 87 | 23 | – | – | |||||||||||
| Other noninterest expenses | 1,262 | 1,039 | 973 | 1,111 | 928 | |||||||||||
| Total noninterest expense | 6,461 | 6,074 | 4,879 | 6,330 | 5,947 | |||||||||||
| Income before provision for income taxes | 4,286 | 3,449 | 4,222 | 2,016 | 3,711 | |||||||||||
| Provision for income taxes | 1,034 | 812 | 1,032 | 406 | 898 | |||||||||||
| Net income | $ | 3,252 | $ | 2,637 | $ | 3,190 | $ | 1,610 | $ | 2,813 | ||||||
| Basic earnings per share | $ | 0.73 | $ | 0.59 | $ | 0.72 | $ | 0.36 | $ | 0.63 | ||||||
| Diluted earnings per share | $ | 0.73 | $ | 0.59 | $ | 0.72 | $ | 0.36 | $ | 0.63 | ||||||
| PSB Holdings, Inc. | ||||||||||||||||
| Consolidated Balance Sheets | ||||||||||||||||
| December 31, September 30, June 30, and March 31, 2020, unaudited, December 31, 2019 derived from audited financial statements | ||||||||||||||||
| (dollars in thousands, except per share data) | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |||||||||||
| Assets | ||||||||||||||||
| Cash and due from banks | $ | 15,723 | $ | 13,652 | $ | 13,016 | $ | 9,665 | $ | 23,005 | ||||||
| Interest-bearing deposits | 1,056 | 1,750 | 1,483 | 1,349 | 839 | |||||||||||
| Federal funds sold | 21,749 | 61,383 | 45,796 | 37,071 | 25,184 | |||||||||||
| Cash and cash equivalents | 38,528 | 76,785 | 60,295 | 48,085 | 49,028 | |||||||||||
| Securities available for sale (at fair value) | 228,296 | 193,179 | 178,635 | 171,054 | 174,448 | |||||||||||
| Bank certificates of deposit (at cost) | 1,231 | 496 | 1,738 | 3,234 | 4,983 | |||||||||||
| Loans held for sale | 954 | 903 | 3,755 | 1,394 | 545 | |||||||||||
| Loans receivable, net | 820,956 | 791,951 | 805,243 | 706,584 | 707,651 | |||||||||||
| Accrued interest receivable | 3,527 | 3,629 | 3,590 | 2,847 | 2,776 | |||||||||||
| Foreclosed assets | 1,619 | 1,485 | 1,525 | 425 | 460 | |||||||||||
| Premises and equipment, net | 10,920 | 11,061 | 11,067 | 11,098 | 10,457 | |||||||||||
| Mortgage servicing rights, net | 1,657 | 1,638 | 1,623 | 1,668 | 1,747 | |||||||||||
| Federal Home Loan Bank stock (at cost) | 2,283 | 2,283 | 2,283 | 2,283 | 2,073 | |||||||||||
| Cash surrender value of bank-owned life insurance | 17,795 | 17,089 | 16,981 | 16,877 | 16,773 | |||||||||||
| Other assets | 4,189 | 3,784 | 6,611 | 4,330 | 3,952 | |||||||||||
| TOTAL ASSETS | $ | 1,131,955 | $ | 1,104,283 | $ | 1,093,346 | $ | 969,879 | $ | 974,893 | ||||||
| Liabilities | ||||||||||||||||
| Non-interest-bearing deposits | $ | 236,981 | $ | 241,947 | $ | 241,914 | $ | 158,505 | $ | 177,002 | ||||||
| Interest-bearing deposits | 695,156 | 658,667 | 640,307 | 606,781 | 604,788 | |||||||||||
| Total deposits | 932,137 | 900,614 | 882,221 | 765,286 | 781,790 | |||||||||||
| Federal Home Loan Bank advances | 62,000 | 67,000 | 87,000 | 88,682 | 73,496 | |||||||||||
| Other borrowings | 12,239 | 16,216 | 3,941 | 3,504 | 6,131 | |||||||||||
| Senior subordinated notes | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | |||||||||||
| Junior subordinated debentures | 7,732 | 7,732 | 7,732 | 7,732 | 7,732 | |||||||||||
| Accrued expenses and other liabilities | 10,920 | 8,871 | 11,998 | 9,024 | 10,553 | |||||||||||
| Total liabilities | 1,027,528 | 1,002,933 | 995,392 | 876,728 | 882,202 | |||||||||||
| Stockholders’ equity | ||||||||||||||||
| Preferred stock – no par value: | ||||||||||||||||
| Authorized – 30,000 shares; no shares issued or outstanding | – | – | – | – | – | |||||||||||
| Common stock – no par value with a stated value of $1.00 per share: | ||||||||||||||||
| Authorized – 6,000,000 shares; Issued – 5,490,798 shares Outstanding – 4,452,287, 4,452,287, 4,452,287, 4,453,472 and 4,467,217 shares, respectively | 1,830 | 1,830 | 1,830 | 1,830 | 1,830 | |||||||||||
| Additional paid-in capital | 7,818 | 7,765 | 7,712 | 7,632 | 7,597 | |||||||||||
| Retained earnings | 103,855 | 101,538 | 98,901 | 96,646 | 95,037 | |||||||||||
| Accumulated other comprehensive income, net of tax | 4,458 | 3,751 | 3,045 | 550 | 1,302 | |||||||||||
| Treasury stock, at cost – 1,038,511, 1,038,511, 1,038,511, 1,037,326 and 1,023,581 shares, respectively | (13,534 | ) | (13,534 | ) | (13,534 | ) | (13,507 | ) | (13,075 | ) | ||||||
| Total stockholders’ equity | 104,427 | 101,350 | 97,954 | 93,151 | 92,691 | |||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,131,955 | $ | 1,104,283 | $ | 1,093,346 | $ | 969,879 | $ | 974,893 | ||||||
| PSB Holdings, Inc. | ||||||||||||||
| Consolidated Statements of Income | ||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||
| (dollars in thousands, | December | December | ||||||||||||
| except per share data – unaudited) | 2020 | 2019 | 2020 | 2019 | ||||||||||
| Interest and dividend income: | ||||||||||||||
| Loans, including fees | $ | 8,371 | $ | 8,691 | $ | 33,059 | $ | 34,477 | ||||||
| Securities: | ||||||||||||||
| Taxable | 542 | 768 | 2,461 | 2,980 | ||||||||||
| Tax-exempt | 489 | 387 | 1,840 | 1,550 | ||||||||||
| Other interest and dividends | 40 | 142 | 254 | 522 | ||||||||||
| Total interest and dividend income | 9,442 | 9,988 | 37,614 | 39,529 | ||||||||||
| Interest expense: | ||||||||||||||
| Deposits | 657 | 1,544 | 4,052 | 6,385 | ||||||||||
| FHLB advances | 228 | 328 | 1,175 | 1,190 | ||||||||||
| Other borrowings | 6 | 26 | 31 | 192 | ||||||||||
| Senior subordinated notes | 29 | 29 | 113 | 113 | ||||||||||
| Junior subordinated debentures | 91 | 92 | 364 | 366 | ||||||||||
| Total interest expense | 1,011 | 2,019 | 5,735 | 8,246 | ||||||||||
| Net interest income | 8,431 | 7,969 | 31,879 | 31,283 | ||||||||||
| Provision for loan losses | 675 | 150 | 5,575 | 850 | ||||||||||
| Net interest income after provision for loan losses | 7,756 | 7,819 | 26,304 | 30,433 | ||||||||||
| Noninterest income: | ||||||||||||||
| Service fees | 352 | 411 | 1,365 | 1,543 | ||||||||||
| Gain on sale of mortgage loans | 1,401 | 452 | 5,887 | 1,522 | ||||||||||
| Mortgage loan servicing, net | 104 | 57 | (163 | ) | 355 | |||||||||
| Investment and insurance sales commissions | 391 | 301 | 1,300 | 1,220 | ||||||||||
| Net gain on sale of securities | 149 | 71 | 504 | 210 | ||||||||||
| Increase in cash surrender value of life insurance | 106 | 104 | 422 | 408 | ||||||||||
| Other noninterest income | 488 | 443 | 2,098 | 2,403 | ||||||||||
| Total noninterest income | 2,991 | 1,839 | 11,413 | 7,661 | ||||||||||
| Noninterest expense: | ||||||||||||||
| Salaries and employee benefits | 4,084 | 3,523 | 14,012 | 13,645 | ||||||||||
| Occupancy and facilities | 511 | 506 | 2,129 | 2,208 | ||||||||||
| Loss (gain) on foreclosed assets | (218 | ) | 69 | (88 | ) | 80 | ||||||||
| Data processing and other office operations | 568 | 739 | 2,630 | 2,616 | ||||||||||
| Advertising and promotion | 172 | 182 | 484 | 509 | ||||||||||
| FDIC insurance premiums | 82 | – | 192 | 122 | ||||||||||
| Other noninterest expenses | 1,262 | 928 | 4,385 | 4,116 | ||||||||||
| Total noninterest expense | 6,461 | 5,947 | 23,744 | 23,296 | ||||||||||
| Income before provision for income taxes | 4,286 | 3,711 | 13,973 | 14,798 | ||||||||||
| Provision for income taxes | 1,034 | 898 | 3,284 | 3,551 | ||||||||||
| Net income | $ | 3,252 | $ | 2,813 | $ | 10,689 | $ | 11,247 | ||||||
| Basic earnings per share | $ | 0.73 | $ | 0.63 | $ | 2.40 | $ | 2.51 | ||||||
| Diluted earnings per share | $ | 0.73 | $ | 0.63 | $ | 2.40 | $ | 2.51 | ||||||
| PSB Holdings, Inc. | ||||||||||||||
| Consolidated Statements of Comprehensive Income | ||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||
| December 31, | December 31, | |||||||||||||
| (dollars in thousands – unaudited) | 2020 | 2019 | 2020 | 2019 | ||||||||||
| Net income | $ | 3,252 | $ | 2,813 | $ | 10,689 | $ | 11,247 | ||||||
| Other comprehensive income, net of tax: | ||||||||||||||
| Unrealized gain on securities available for sale | 641 | 179 | 3,577 | 3,288 | ||||||||||
| Reclassification adjustment for security gain included in net income | (108 | ) | (51 | ) | (366 | ) | (152 | ) | ||||||
| Amortization of unrealized loss (gain) included in net income on securities available for sale transferred to securities held to maturity | – | 3 | – | (3 | ) | |||||||||
| Unrealized gain (loss) on interest rate swap | 135 | 55 | (181 | ) | (211 | ) | ||||||||
| Reclassification adjustment of interest rate swap settlements included in earnings | 38 | 13 | 126 | 31 | ||||||||||
| Other comprehensive income | 706 | 199 | 3,156 | 2,953 | ||||||||||
| Comprehensive income | $ | 3,958 | $ | 3,012 | $ | 13,845 | $ | 14,200 | ||||||
| PSB Holding, Inc. | |||||||||||||||||
| Loan Composition by Purpose | |||||||||||||||||
| Quarter-ended (dollars in thousands) | |||||||||||||||||
| Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |||||||||||||
| Residential Real Estate | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||
| One to four family | $ | 125,530 | $ | 114,226 | $ | 118,049 | $ | 122,276 | $ | 121,548 | |||||||
| HELOC loans | 18,312 | 19,747 | 19,550 | 20,795 | 21,668 | ||||||||||||
| Residential construction & development | 25,519 | 22,529 | 23,129 | 22,963 | 23,633 | ||||||||||||
| Residential vacant land | 3,305 | 3,147 | 3,417 | 3,745 | 3,908 | ||||||||||||
| Total Residential real estate | 172,666 | 159,649 | 164,145 | 169,779 | 170,757 | ||||||||||||
| Commercial/Agricultural real estate: | |||||||||||||||||
| Owner occupied | |||||||||||||||||
| Commercial real estate | 187,059 | 164,073 | 164,483 | 164,851 | 156,275 | ||||||||||||
| SBA commercial real estate | 1,483 | 1,506 | 1,539 | 1,571 | 1,647 | ||||||||||||
| Agriculture real estate | 4,429 | 4,677 | 4,885 | 5,041 | 5,901 | ||||||||||||
| Construction and land development | 5,468 | 13,557 | 7,294 | 8,297 | 13,228 | ||||||||||||
| Commercial vacant land | 2,835 | 2,819 | 2,241 | 1,560 | 929 | ||||||||||||
| Total Owner occupied | 201,274 | 186,632 | 180,442 | 179,760 | 177,051 | ||||||||||||
| Non-owner occupied | |||||||||||||||||
| Commercial real estate | 173,953 | 170,847 | 165,099 | 158,634 | 162,118 | ||||||||||||
| One to four family residential rental | 31,363 | 30,159 | 28,451 | 29,891 | 30,042 | ||||||||||||
| SBA commercial real estate | 749 | 771 | 793 | 824 | 844 | ||||||||||||
| Agricultural real estate | – | – | – | – | – | ||||||||||||
| Construction and land development | 29,846 | 18,600 | 11,927 | 16,406 | 17,061 | ||||||||||||
| Commercial vacant land | 8,402 | 8,907 | 10,135 | 13,965 | 14,280 | ||||||||||||
| Total Non-owner occupied | 244,313 | 229,284 | 216,405 | 219,720 | 224,345 | ||||||||||||
| Commercial/Agricultural non-real estate: | |||||||||||||||||
| Municipal non-real estate | 11,422 | 5,687 | 7,826 | 5,933 | 11,601 | ||||||||||||
| Commercial line | 41,619 | 40,067 | 55,317 | 59,266 | 54,538 | ||||||||||||
| Other commercial non-real estate | 52,723 | 58,718 | 69,267 | 70,467 | 65,690 | ||||||||||||
| SBA commercial non-real estate | 103,871 | 118,668 | 117,436 | 1,453 | 1,733 | ||||||||||||
| Agricultural non-real estate | 1,986 | 2,150 | 2,148 | 2,075 | 2,402 | ||||||||||||
| Total Commercial/Agr. non-real estate | 211,621 | 225,290 | 251,994 | 139,194 | 135,964 | ||||||||||||
| Consumer non-real estate: | |||||||||||||||||
| Consumer installment | 3,400 | 3,358 | 3,512 | 3,344 | 3,454 | ||||||||||||
| Consumer line | 353 | 366 | 243 | 328 | 1,354 | ||||||||||||
| Other consumer | 143 | 163 | 160 | 183 | 189 | ||||||||||||
| Total Consumer non-real estate | 3,896 | 3,887 | 3,915 | 3,855 | 4,997 | ||||||||||||
| Gross loans | 833,770 | 804,742 | 816,901 | 713,868 | 714,043 | ||||||||||||
| Net deferred loan costs | (2,140 | ) | (2,627 | ) | (2,617 | ) | 388 | 326 | |||||||||
| Overdrafts | 161 | 317 | 133 | 199 | 221 | ||||||||||||
| Allowance for loan losses | (10,835 | ) | (10,481 | ) | (9,174 | ) | (7,871 | ) | (6,939 | ) | |||||||
| Total loans receivable | $ | 820,956 | $ | 791,951 | $ | 805,243 | $ | 706,584 | $ | 707,651 | |||||||
| PSB Holdings, Inc. | ||||||||||||||||
| Nonperforming Assets as of: | ||||||||||||||||
| Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | ||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||
| Nonaccrual loans (excluding restructured loans) | $ | 2,071 | $ | 2,129 | $ | 2,964 | $ | 3,868 | $ | 3,697 | ||||||
| Nonaccrual restructured loans | 1,064 | 233 | 244 | 232 | 499 | |||||||||||
| Restructured loans not on nonaccrual | 5,414 | 5,508 | 650 | 672 | 676 | |||||||||||
| Accruing loans past due 90 days or more | – | – | – | – | – | |||||||||||
| Total nonperforming loans | 8,549 | 7,870 | 3,858 | 4,772 | 4,872 | |||||||||||
| Other real estate owned | 1,619 | 1,485 | 1,525 | 425 | 460 | |||||||||||
| Total nonperforming assets | $ | 10,168 | $ | 9,355 | $ | 5,383 | $ | 5,197 | $ | 5,332 | ||||||
| Nonperforming loans as a % of gross loans receivable | 1.03 | % | 0.98 | % | 0.47 | % | 0.67 | % | 0.68 | % | ||||||
| Total nonperforming assets as a % of total assets | 0.90 | % | 0.85 | % | 0.49 | % | 0.54 | % | 0.55 | % | ||||||
| Allowance for loan losses as a % of nonperforming loans | 126.74 | % | 133.18 | % | 237.79 | % | 164.94 | % | 142.43 | % | ||||||
| PSB Holdings, Inc. | |||||
| Nonperforming Assets >= $500,000 net book value before specific reserves | |||||
| At December 31, 2020 | |||||
| (dollars in thousands) | |||||
| Gross | Specific | ||||
| Collateral Description | Asset Type | Principal | Reserves | ||
| Leased retail sales outlet | ORE | $ | 1,100 | ||
| Real estate – Hotel | Restructured | 4,861 | $ | 192 | |
| Real estate – Buffet Style Restaurant | Restructured/Nonaccrual | 895 | 142 | ||
| Total listed nonperforming assets | 6,856 | 334 | |||
| Total bank wide nonperforming assets | $ | 10,168 | $ | 676 | |
| Largest Performing, but Impaired Loans at December 31, 2020 ($000s) | |||||
| Gross | Specific | ||||
| Collateral Description | Asset Type | Principal | Reserves | ||
| Real estate | Impaired | $ | 4,336 | $ | 233 |
| Total listed performing, but impaired loans | $ | 4,336 | $ | 233 | |
| Total performing, but impaired loans | $ | 5,929 | $ | 344 | |
| PSB Holdings, Inc. | ||||||||||||||
| Deposit Composition | ||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | |||||||||||
| $ | % | $ | % | $ | % | |||||||||
| Non-interest bearing demand | $ | 236,981 | 25.40 | % | $ | 241,947 | 26.90 | % | $ | 177,002 | 22.60 | % | ||
| Interest-bearing demand and savings | 332,677 | 35.70 | % | 291,275 | 32.30 | % | 257,486 | 32.90 | % | |||||
| Money market deposits | 222,156 | 23.80 | % | 213,057 | 23.70 | % | 183,370 | 23.50 | % | |||||
| Retail and local time deposits <= $250 | 103,064 | 11.10 | % | 103,288 | 11.50 | % | 104,455 | 13.40 | % | |||||
| Total core deposits | 894,878 | 96.00 | % | 849,567 | 94.40 | % | 722,313 | 92.40 | % | |||||
| Retail and local time deposits > $250 | 23,112 | 2.50 | % | 24,669 | 2.70 | % | 25,431 | 3.30 | % | |||||
| Broker & national time deposits <= $250 | 12,153 | 1.30 | % | 14,384 | 1.60 | % | 5,457 | 0.70 | % | |||||
| Broker & national time deposits > $250 | 1,994 | 0.20 | % | 11,994 | 1.30 | % | 28,589 | 3.60 | % | |||||
| Totals | $ | 932,137 | 100.00 | % | $ | 900,614 | 100.00 | % | $ | 781,790 | 100.00 | % | ||
| PSB Holdings, Inc. | |||||||||||||||||||||||||
| Average Balances ($000) and Interest Rates | |||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||
| Quarter ended December 31, 2020 | Quarter ended September 30, 2020 | Quarter ended December 31, 2019 | |||||||||||||||||||||||
| Average | Yield / | Average | Yield / | Average | Yield / | ||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||
| Assets | |||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||
| Loans (1)(2) | $ | 817,875 | $ | 8,383 | 4.08 | % | $ | 810,232 | $ | 8,080 | 3.97 | % | $ | 707,336 | $ | 8,709 | 4.88 | % | |||||||
| Taxable securities | 129,832 | 542 | 1.66 | % | 108,241 | 564 | 2.07 | % | 111,697 | 768 | 2.73 | % | |||||||||||||
| Tax-exempt securities (2) | 80,619 | 619 | 3.05 | % | 76,168 | 600 | 3.13 | % | 59,511 | 490 | 3.27 | % | |||||||||||||
| FHLB stock | 2,283 | 27 | 4.70 | % | 2,283 | 28 | 4.88 | % | 2,091 | 25 | 4.74 | % | |||||||||||||
| Other | 27,336 | 13 | 0.19 | % | 58,081 | 21 | 0.14 | % | 29,443 | 117 | 1.58 | % | |||||||||||||
| Total (2) | 1,057,945 | 9,584 | 3.60 | % | 1,055,005 | 9,293 | 3.50 | % | 910,078 | 10,109 | 4.41 | % | |||||||||||||
| Non-interest-earning assets: | |||||||||||||||||||||||||
| Cash and due from banks | 14,011 | 13,945 | 12,284 | ||||||||||||||||||||||
| Premises and equipment, | |||||||||||||||||||||||||
| net | 11,023 | 11,135 | 10,333 | ||||||||||||||||||||||
| Cash surrender value ins | 17,206 | 17,021 | 16,713 | ||||||||||||||||||||||
| Other assets | 10,572 | 11,917 | 8,868 | ||||||||||||||||||||||
| Allowance for loan | |||||||||||||||||||||||||
| losses | (10,693 | ) | (9,621 | ) | (6,867 | ) | |||||||||||||||||||
| Total | $ | 1,100,064 | $ | 1,099,402 | $ | 951,409 | |||||||||||||||||||
| Liabilities & stockholders’ equity | |||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||
| Savings and demand | |||||||||||||||||||||||||
| deposits | $ | 298,696 | $ | 65 | 0.09 | % | $ | 285,384 | $ | 72 | 0.10 | % | $ | 239,613 | $ | 307 | 0.51 | % | |||||||
| Money market deposits | 218,455 | 128 | 0.23 | % | 206,881 | 146 | 0.28 | % | 180,262 | 418 | 0.92 | % | |||||||||||||
| Time deposits | 143,714 | 464 | 1.28 | % | 159,851 | 615 | 1.53 | % | 162,726 | 819 | 2.00 | % | |||||||||||||
| FHLB borrowings | 64,283 | 228 | 1.41 | % | 86,565 | 304 | 1.40 | % | 77,920 | 328 | 1.67 | % | |||||||||||||
| Other borrowings | 16,638 | 6 | 0.14 | % | 9,445 | 5 | 0.21 | % | 14,374 | 26 | 0.72 | % | |||||||||||||
| Senior sub. notes | 2,500 | 29 | 4.61 | % | 2,500 | 28 | 4.46 | % | 2,500 | 29 | 4.60 | % | |||||||||||||
| Junior sub. debentures | 7,732 | 91 | 4.68 | % | 7,732 | 91 | 4.68 | % | 7,732 | 92 | 4.72 | % | |||||||||||||
| Total | 752,018 | 1,011 | 0.53 | % | 758,358 | 1,261 | 0.66 | % | 685,127 | 2,019 | 1.17 | % | |||||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||||||
| Demand deposits | 235,562 | 230,566 | 162,854 | ||||||||||||||||||||||
| Other liabilities | 9,694 | 10,042 | 10,239 | ||||||||||||||||||||||
| Stockholders’ equity | 102,790 | 100,436 | 93,189 | ||||||||||||||||||||||
| Total | $ | 1,100,064 | $ | 1,099,402 | $ | 951,409 | |||||||||||||||||||
| Net interest income | $ | 8,573 | $ | 8,032 | $ | 8,090 | |||||||||||||||||||
| Rate spread | 3.07 | % | 2.84 | % | 3.24 | % | |||||||||||||||||||
| Net yield on interest-earning assets | 3.22 | % | 3.03 | % | 3.53 | % | |||||||||||||||||||
| (1) Nonaccrual loans are included in the daily average loan balances outstanding. | |||||||||||||||||||||||||
| (2) The yield on 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, 2020 | Year ended December 31, 2019 | ||||||||||||||||
| Average | Yield/ | Average | Yield/ | ||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||
| Assets | |||||||||||||||||
| Interest-earning assets: | |||||||||||||||||
| Loans (1)(2) | $ | 784,126 | $ | 33,111 | 4.22 | % | $ | 685,279 | $ | 34,533 | 5.04 | % | |||||
| Taxable securities | 112,200 | 2,461 | 2.19 | % | 107,801 | 2,980 | 2.76 | % | |||||||||
| Tax-exempt securities (2) | 73,490 | 2,329 | 3.17 | % | 61,482 | 1,962 | 3.19 | % | |||||||||
| FHLB stock | 2,243 | 106 | 4.73 | % | 1,918 | 104 | 5.42 | % | |||||||||
| Other | 43,593 | 148 | 0.34 | % | 21,253 | 418 | 1.97 | % | |||||||||
| Total (2) | 1,015,652 | 38,155 | 3.76 | % | 877,733 | 39,997 | 4.56 | % | |||||||||
| Non-interest-earning assets: | |||||||||||||||||
| Cash and due from banks | 12,592 | 11,644 | |||||||||||||||
| Premises and equipment, | |||||||||||||||||
| net | 11,013 | 10,318 | |||||||||||||||
| Cash surrender value ins | 16,990 | 16,558 | |||||||||||||||
| Other assets | 10,484 | 8,738 | |||||||||||||||
| Allowance for loan | |||||||||||||||||
| losses | (8,990 | ) | (6,605 | ) | |||||||||||||
| Total | $ | 1,057,741 | $ | 918,386 | |||||||||||||
| Liabilities & stockholders’ equity | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| Savings and demand | |||||||||||||||||
| deposits | $ | 277,014 | $ | 594 | 0.21 | % | $ | 243,035 | $ | 1,588 | 0.65 | % | |||||
| Money market deposits | 202,666 | 860 | 0.42 | % | 163,061 | 1,541 | 0.95 | % | |||||||||
| Time deposits | 158,030 | 2,598 | 1.64 | % | 168,624 | 3,256 | 1.93 | % | |||||||||
| FHLB borrowings | 80,462 | 1,175 | 1.46 | % | 67,207 | 1,190 | 1.77 | % | |||||||||
| Other borrowings | 9,602 | 31 | 0.32 | % | 19,628 | 192 | 0.98 | % | |||||||||
| Senior sub. notes | 2,500 | 113 | 4.52 | % | 2,500 | 113 | 4.52 | % | |||||||||
| Junior sub. debentures | 7,732 | 364 | 4.71 | % | 7,732 | 366 | 4.73 | % | |||||||||
| Total | 738,006 | 5,735 | 0.78 | % | 671,787 | 8,246 | 1.23 | % | |||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||
| Demand deposits | 211,155 | 148,746 | |||||||||||||||
| Other liabilities | 9,925 | 9,810 | |||||||||||||||
| Stockholders’ equity | 98,655 | 88,043 | |||||||||||||||
| Total | $ | 1,057,741 | $ | 918,386 | |||||||||||||
| Net interest income | $ | 32,420 | $ | 31,751 | |||||||||||||
| Rate spread | 2.98 | % | 3.33 | % | |||||||||||||
| Net yield on interest-earning assets | 3.19 | % | 3.62 | % | |||||||||||||
| (1) Nonaccrual loans are included in the daily average loan balances outstanding. | |||||||||||||||||
| (2) The yield on tax-exempt loans and securities is computed on a tax-equivalent | |||||||||||||||||
| basis using a tax rate of 21%. | |||||||||||||||||
Investor Relations Contact
PSB Holdings, Inc.
1905 Stewart Avenue
Wausau, WI 54401
888.929.9902
InvestorRelations@bankpeoples.com
