SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
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Pursuant to Section 13 or 15(d) of the Securities
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Exchange Act of 1934
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Date of Report (date of earliest event reported): October 27, 2011
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PSB HOLDINGS, INC.
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(Exact name of registrant as specified in its charter)
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WISCONSIN
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0-26480
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39-1804877
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(State or other
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(Commission File
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(IRS Employer
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jurisdiction of
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Number)
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Identification
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incorporation)
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Number)
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1905 W. STEWART AVENUE
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WAUSAU, WI 54401
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(Address of principal executive offices, including Zip Code)
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(715) 842-2191
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Registrant’s telephone number, including area code
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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£
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 23.425)
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£
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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£
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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£
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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*
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This exhibit is furnished pursuant to Item 2.02 and shall not be deemed to have been filed or incorporated by reference into any other filing by the Company under the Securities Act of 1933 or Securities Exchange Act of 1934 unless expressly so provided by specific reference in such filing.
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PSB HOLDINGS, INC.
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Date: October 27, 2011
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By:
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SCOTT M. CATTANACH
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Scott M. Cattanach
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Treasurer
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*
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This exhibit is furnished pursuant to Item 2.02 and shall not be deemed to have been filed or incorporated by reference into any other filing by the Company under the Securities Act of 1933 or Securities Exchange Act of 1934 unless expressly so provided by specific reference in such filing.
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Exhibit 99.1
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v
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Record September 2011 quarterly earnings of $.88 per share and year to date earnings of $2.48 per share, up 3.5% and 13.2% over the prior year periods, respectively.
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v
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Return on equity of 11.20% and 10.75% during the quarterly and year-to-date periods ended September 30, 2011, respectively.
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v
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Tangible net book value of $31.60 per share, up 7.4% over September 2010.
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v
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Total assets of $611 million at September 30, 2011, up $10 million during the quarter.
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v
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Stable nonperforming loan portfolio of $14.4 million, including restructured loans accruing interest, compared to $14.3 million at June 30, 2011.
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v
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Foreclosed assets of $3.4 million at September 30, 2011, down 30.6% since December 31, 2010.
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v
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Increased regulatory total capital ratio of 14.92% at September 30, 2011 compared to the “well-capitalized” regulatory minimum of 10% and up from 13.90% at December 31, 2010.
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Non-Performing Assets as of
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September 30,
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December 31,
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|||||||||
(dollars in thousands)
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2011
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2010
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2010
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||||||||
Nonaccrual loans (excluding restructured loans)
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$ | 5,931 | $ | 8,720 | $ | 7,127 | |||||
Nonaccrual restructured loans
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2,098 | 667 | 1,912 | ||||||||
Restructured loans not on nonaccrual
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6,357 | – | 2,383 | ||||||||
Accruing loans past due 90 days or more
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– | – | – | ||||||||
Total nonperforming loans
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14,386 | 9,387 | 11,422 | ||||||||
Nonaccrual trust preferred investment security
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750 | – | – | ||||||||
Foreclosed assets
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3,447 | 5,754 | 4,967 | ||||||||
Total nonperforming assets
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$ | 18,583 | $ | 15,141 | $ | 16,389 | |||||
Nonperforming loans as a % of gross loans
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3.26 | % | 2.14 | % | 2.60 | % | |||||
Total nonperforming assets as a % of total assets
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3.04 | % | 2.52 | % | 2.64 | % |
PSB Holdings, Inc.
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Quarterly Financial Summary
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(dollars in thousands, except per share data)
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Quarter ended – Unaudited
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September 30,
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June 30,
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March 31,
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December 31,
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September 30,
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||||||||||||||||
Earnings and dividends:
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2011
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2011
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2011
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2010
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2010
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|||||||||||||||
Net income
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$ | 1,394 | $ | 1,226 | $ | 1,285 | $ | 1,334 | $ | 1,331 | ||||||||||
Basic earnings per share(3)
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$ | 0.89 | $ | 0.78 | $ | 0.82 | $ | 0.85 | $ | 0.85 | ||||||||||
Diluted earnings per share(3)
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$ | 0.88 | $ | 0.78 | $ | 0.82 | $ | 0.85 | $ | 0.85 | ||||||||||
Dividends declared per share(3)
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$ | – | $ | 0.37 | $ | – | $ | 0.36 | $ | – | ||||||||||
Net book value per share
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$ | 31.60 | $ | 30.95 | $ | 30.46 | $ | 29.85 | $ | 29.43 | ||||||||||
Semi-annual dividend payout ratio
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n/a | 23.33 | % | n/a | 21.13 | % | n/a | |||||||||||||
Average common shares outstanding
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1,574,456 | 1,573,954 | 1,572,825 | 1,564,297 | 1,564,297 | |||||||||||||||
Balance sheet – average balances:
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||||||||||||||||||||
Loans receivable, net of allowances
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$ | 434,031 | $ | 437,314 | $ | 431,139 | $ | 430,923 | $ | 438,111 | ||||||||||
Total assets
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$ | 602,088 | $ | 601,978 | $ | 617,818 | $ | 610,577 | $ | 604,298 | ||||||||||
Deposits
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$ | 452,225 | $ | 451,214 | $ | 463,773 | $ | 454,735 | $ | 459,265 | ||||||||||
Stockholders’ equity
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$ | 49,369 | $ | 48,978 | $ | 47,352 | $ | 47,219 | $ | 45,136 | ||||||||||
Performance ratios:
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||||||||||||||||||||
Return on average assets(1)
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0.92 | % | 0.82 | % | 0.84 | % | 0.87 | % | 0.87 | % | ||||||||||
Return on avg. stockholders’ equity(1)
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11.20 | % | 10.04 | % | 11.01 | % | 11.21 | % | 11.70 | % | ||||||||||
Average tangible stockholders’ equity
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||||||||||||||||||||
less accumulated other comprehensive
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||||||||||||||||||||
income (loss) to average assets(4)
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7.84 | % | 7.75 | % | 7.29 | % | 7.34 | % | 7.11 | % | ||||||||||
Net loan charge-offs to average loans(1)
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0.14 | % | -0.01 | % | 0.86 | % | 0.26 | % | 0.16 | % | ||||||||||
Nonperforming loans to gross loans
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3.26 | % | 3.21 | % | 2.21 | % | 2.60 | % | 2.14 | % | ||||||||||
Allowance for loan losses to gross loans
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1.82 | % | 1.75 | % | 1.66 | % | 1.81 | % | 1.82 | % | ||||||||||
Nonperforming assets to tangible equity
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plus the allowance for loan losses(4)
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32.82 | % | 35.03 | % | 28.43 | % | 30.61 | % | 28.57 | % | ||||||||||
Net interest rate margin(1)(2)
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3.53 | % | 3.57 | % | 3.45 | % | 3.53 | % | 3.65 | % | ||||||||||
Net interest rate spread(1)(2)
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3.28 | % | 3.34 | % | 3.23 | % | 3.27 | % | 3.40 | % | ||||||||||
Service fee revenue as a percent of
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||||||||||||||||||||
average demand deposits(1)
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2.95 | % | 3.05 | % | 2.84 | % | 3.01 | % | 3.44 | % | ||||||||||
Noninterest income as a percent of gross revenue
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16.15 | % | 14.40 | % | 16.55 | % | 17.03 | % | 16.12 | % | ||||||||||
Efficiency ratio(2)
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59.75 | % | 61.92 | % | 62.18 | % | 65.15 | % | 59.54 | % | ||||||||||
Noninterest expenses to average assets(1)
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2.53 | % | 2.58 | % | 2.59 | % | 2.80 | % | 2.61 | % | ||||||||||
Stock price information:
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High
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$ | 25.00 | $ | 26.00 | $ | 27.00 | $ | 24.50 | $ | 25.00 | ||||||||||
Low
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$ | 23.15 | $ | 24.00 | $ | 22.10 | $ | 21.00 | $ | 19.64 | ||||||||||
Market value at quarter-end
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$ | 23.75 | $ | 24.26 | $ | 24.00 | $ | 23.00 | $ | 23.50 |
PSB Holdings, Inc.
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Consolidated Statements of Income
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Three Months Ended
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Nine Months Ended
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(dollars in thousands,
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September 30,
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September 30,
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||||||||||||||
except per share data – unaudited)
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2011
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2010
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2011
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2010
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Interest and dividend income:
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||||||||||||||||
Loans, including fees
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$ | 6,140 | $ | 6,558 | $ | 18,296 | $ | 19,059 | ||||||||
Securities:
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Taxable
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658 | 730 | 2,041 | 2,264 | ||||||||||||
Tax-exempt
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280 | 315 | 858 | 960 | ||||||||||||
Other interest and dividends
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17 | 9 | 56 | 16 | ||||||||||||
Total interest and dividend income
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7,095 | 7,612 | 21,251 | 22,299 | ||||||||||||
Interest expense:
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||||||||||||||||
Deposits
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1,375 | 1,702 | 4,200 | 5,372 | ||||||||||||
FHLB advances
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464 | 473 | 1,380 | 1,401 | ||||||||||||
Other borrowings
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162 | 169 | 494 | 568 | ||||||||||||
Senior subordinated notes
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142 | 141 | 425 | 425 | ||||||||||||
Junior subordinated debentures
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85 | 108 | 255 | 334 | ||||||||||||
Total interest expense
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2,228 | 2,593 | 6,754 | 8,100 | ||||||||||||
Net interest income
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4,867 | 5,019 | 14,497 | 14,199 | ||||||||||||
Provision for loan losses
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360 | 510 | 1,150 | 1,555 | ||||||||||||
Net interest income after provision for loan losses
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4,507 | 4,509 | 13,347 | 12,644 | ||||||||||||
Noninterest income:
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||||||||||||||||
Service fees
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436 | 487 | 1,223 | 1,332 | ||||||||||||
Mortgage banking
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278 | 375 | 984 | 921 | ||||||||||||
Investment and insurance sales commissions
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198 | 138 | 470 | 482 | ||||||||||||
Net loss on sale and write-down of securities
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– | – | – | (20 | ) | |||||||||||
Increase in cash surrender value of life insurance
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103 | 103 | 311 | 307 | ||||||||||||
Other noninterest income
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352 | 360 | 973 | 829 | ||||||||||||
Total noninterest income
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1,367 | 1,463 | 3,961 | 3,851 | ||||||||||||
Noninterest expense:
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||||||||||||||||
Salaries and employee benefits
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2,210 | 2,233 | 6,311 | 6,343 | ||||||||||||
Occupancy and facilities
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384 | 431 | 1,249 | 1,445 | ||||||||||||
Loss on foreclosed assets
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66 | 156 | 639 | 305 | ||||||||||||
Data processing and other office operations
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375 | 331 | 1,001 | 861 | ||||||||||||
Advertising and promotion
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90 | 99 | 205 | 252 | ||||||||||||
FDIC insurance premiums
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59 | 117 | 397 | 590 | ||||||||||||
Other noninterest expenses
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651 | 612 | 1,855 | 1,824 | ||||||||||||
Total noninterest expense
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3,835 | 3,979 | 11,657 | 11,620 | ||||||||||||
Income before provision for income taxes
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2,039 | 1,993 | 5,651 | 4,875 | ||||||||||||
Provision for income taxes
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645 | 662 | 1,746 | 1,455 | ||||||||||||
Net income
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$ | 1,394 | $ | 1,331 | $ | 3,905 | $ | 3,420 | ||||||||
Basic earnings per share
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$ | 0.89 | $ | 0.85 | $ | 2.48 | $ | 2.19 | ||||||||
Diluted earnings per share
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$ | 0.88 | $ | 0.85 | $ | 2.48 | $ | 2.19 |
PSB Holdings, Inc.
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Consolidated Balance Sheets
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||||||||
September 30, 2011 unaudited, December 31, 2010 derived from audited financial statements
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September 30,
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December 31,
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|||||||
(dollars in thousands, except per share data) – Unaudited
|
2011
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2010
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||||||
Assets
|
||||||||
Cash and due from banks
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$ | 10,622 | $ | 9,601 | ||||
Interest-bearing deposits and money market funds
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1,207 | 227 | ||||||
Federal Funds sold
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15,790 | 30,503 | ||||||
Cash and cash equivalents
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27,619 | 40,331 | ||||||
Securities available for sale (at fair value)
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60,987 | 55,273 | ||||||
Securities held to maturity (fair value of $51,929 and $51,662)
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50,796 | 53,106 | ||||||
Other investments
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2,484 | 2,484 | ||||||
Loans held for sale
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274 | 436 | ||||||
Loans receivable, net of allowance for loan losses
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432,758 | 431,801 | ||||||
Accrued interest receivable
|
2,103 | 2,238 | ||||||
Foreclosed assets
|
3,447 | 4,967 | ||||||
Premises and equipment, net
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10,081 | 10,464 | ||||||
Mortgage servicing rights, net
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1,154 | 1,100 | ||||||
Federal Home Loan Bank stock (at cost)
|
3,250 | 3,250 | ||||||
Cash surrender value of bank-owned life insurance
|
11,303 | 10,899 | ||||||
Other assets
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5,026 | 4,744 | ||||||
TOTAL ASSETS
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$ | 611,282 | $ | 621,093 | ||||
Liabilities
|
||||||||
Non-interest-bearing deposits
|
$ | 67,418 | $ | 57,932 | ||||
Interest-bearing deposits
|
396,805 | 407,325 | ||||||
Total deposits
|
464,223 | 465,257 | ||||||
Federal Home Loan Bank advances
|
55,124 | 57,434 | ||||||
Other borrowings
|
21,745 | 31,511 | ||||||
Senior subordinated notes
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7,000 | 7,000 | ||||||
Junior subordinated debentures
|
7,732 | 7,732 | ||||||
Accrued expenses and other liabilities
|
5,702 | 5,469 | ||||||
Total liabilities
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561,526 | 574,403 | ||||||
Stockholders’ equity
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||||||||
Preferred stock – no par value: Authorized – 30,000 shares
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- | - | ||||||
Common stock – no par value with a stated value of $1 per share:
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||||||||
Authorized - 3,000,000 shares
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||||||||
Issued – 1,751,431 shares; Outstanding – 1,574,456 shares
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1,751 | |||||||
Issued – 1,751,431 shares; Outstanding – 1,564,297 shares
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1,751 | |||||||
Additional paid-in capital
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5,319 | 5,506 | ||||||
Retained earnings
|
45,293 | 41,974 | ||||||
Accumulated other comprehensive income
|
2,186 | 2,528 | ||||||
Treasury stock, at cost – 176,975 and 187,134 shares, respectively
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(4,793 | ) | (5,069 | ) | ||||
Total stockholders’ equity
|
49,756 | 46,690 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 611,282 | $ | 621,093 |
PSB Holdings, Inc.
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Average Balances and Interest Rates
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||||||||||||||||||||||||
Quarter Ended September 30,
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||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
Avg Bal
|
Interest
|
Yield/Rate
|
Avg Bal
|
Interest
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Yield/Rate
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|||||||||||||||||||
Assets
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||||||||||||||||||||||||
Interest-earning assets:
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||||||||||||||||||||||||
Loans(1)(2)
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$ | 441,889 | $ | 6,180 | 5.55 | % | $ | 445,979 | $ | 6,597 | 5.87 | % | ||||||||||||
Taxable securities
|
79,329 | 658 | 3.29 | % | 73,053 | 730 | 3.96 | % | ||||||||||||||||
Tax-exempt securities(2)
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32,431 | 424 | 5.19 | % | 35,449 | 477 | 5.34 | % | ||||||||||||||||
FHLB stock
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3,250 | 1 | 0.12 | % | 3,250 | – | 0.00 | % | ||||||||||||||||
Other
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10,544 | 16 | 0.60 | % | 9,799 | 9 | 0.36 | % | ||||||||||||||||
Total (2)
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567,443 | 7,279 | 5.09 | % | 567,530 | 7,813 | 5.46 | % | ||||||||||||||||
Non-interest-earning assets:
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||||||||||||||||||||||||
Cash and due from banks
|
8,650 | 9,274 | ||||||||||||||||||||||
Premises and equipment, net
|
10,158 | 10,546 | ||||||||||||||||||||||
Cash surrender value insurance
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11,238 | 10,732 | ||||||||||||||||||||||
Other assets
|
12,457 | 14,084 | ||||||||||||||||||||||
Allowance for loan losses
|
(7,858 | ) | (7,868 | ) | ||||||||||||||||||||
Total
|
$ | 602,088 | $ | 604,298 | ||||||||||||||||||||
Liabilities & stockholders’ equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
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||||||||||||||||||||||||
Savings and demand deposits
|
$ | 122,878 | $ | 292 | 0.94 | % | $ | 120,321 | $ | 327 | 1.08 | % | ||||||||||||
Money market deposits
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96,702 | 202 | 0.83 | % | 95,252 | 257 | 1.07 | % | ||||||||||||||||
Time deposits
|
174,069 | 881 | 2.01 | % | 187,587 | 1,118 | 2.36 | % | ||||||||||||||||
FHLB borrowings
|
58,646 | 464 | 3.14 | % | 57,434 | 473 | 3.27 | % | ||||||||||||||||
Other borrowings
|
21,745 | 162 | 2.96 | % | 23,304 | 169 | 2.88 | % | ||||||||||||||||
Senior subordinated notes
|
7,000 | 142 | 8.05 | % | 7,000 | 141 | 7.99 | % | ||||||||||||||||
Junior subordinated debentures
|
7,732 | 85 | 4.36 | % | 7,732 | 108 | 5.54 | % | ||||||||||||||||
Total
|
488,772 | 2,228 | 1.81 | % | 498,630 | 2,593 | 2.06 | % | ||||||||||||||||
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
58,576 | 56,105 | ||||||||||||||||||||||
Other liabilities
|
5,371 | 4,427 | ||||||||||||||||||||||
Stockholders’ equity
|
49,369 | 45,136 | ||||||||||||||||||||||
Total
|
$ | 602,088 | $ | 604,298 | ||||||||||||||||||||
Net interest income
|
$ | 5,051 | $ | 5,220 | ||||||||||||||||||||
Rate spread
|
3.28 | % | 3.40 | % | ||||||||||||||||||||
Net yield on interest-earning assets
|
3.53 | % | 3.65 | % |
PSB Holdings, Inc.
|
||||||||||||||||||||||||
Average Balances and Interest Rates
|
||||||||||||||||||||||||
Nine Months Ended September 30,
|
||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
Avg Bal
|
Interest
|
Yield/Rate
|
Avg Bal
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans(1)(2)
|
$ | 441,970 | $ | 18,419 | 5.57 | % | $ | 444,739 | $ | 19,180 | 5.77 | % | ||||||||||||
Taxable securities
|
79,709 | 2,041 | 3.42 | % | 71,440 | 2,264 | 4.24 | % | ||||||||||||||||
Tax-exempt securities(2)
|
33,080 | 1,300 | 5.25 | % | 36,109 | 1,455 | 5.39 | % | ||||||||||||||||
FHLB stock
|
3,250 | 3 | 0.12 | % | 3,250 | – | 0.00 | % | ||||||||||||||||
Other
|
14,518 | 53 | 0.49 | % | 10,633 | 16 | 0.20 | % | ||||||||||||||||
Total(2)
|
572,527 | 21,816 | 5.09 | % | 566,171 | 22,915 | 5.41 | % | ||||||||||||||||
Non-interest-earning assets:
|
||||||||||||||||||||||||
Cash and due from banks
|
8,356 | 9,223 | ||||||||||||||||||||||
Premises and equipment, net
|
10,279 | 10,441 | ||||||||||||||||||||||
Cash surrender value ins.
|
11,119 | 10,630 | ||||||||||||||||||||||
Other assets
|
12,811 | 13,352 | ||||||||||||||||||||||
Allowance for loan losses
|
(7,799 | ) | (7,784 | ) | ||||||||||||||||||||
Total
|
$ | 607,293 | $ | 602,033 | ||||||||||||||||||||
Liabilities & stockholders' equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Savings and demand deposits
|
$ | 126,571 | $ | 877 | 0.93 | % | $ | 121,725 | $ | 1,007 | 1.11 | % | ||||||||||||
Money market deposits
|
101,877 | 640 | 0.84 | % | 94,240 | 831 | 1.18 | % | ||||||||||||||||
Time deposits
|
171,806 | 2,683 | 2.09 | % | 186,402 | 3,534 | 2.53 | % | ||||||||||||||||
FHLB borrowings
|
57,327 | 1,380 | 3.22 | % | 57,823 | 1,401 | 3.24 | % | ||||||||||||||||
Other borrowings
|
26,172 | 494 | 2.52 | % | 24,562 | 568 | 3.09 | % | ||||||||||||||||
Senior subordinated notes
|
7,000 | 425 | 8.12 | % | 7,000 | 425 | 8.12 | % | ||||||||||||||||
Junior sub. debentures
|
7,732 | 255 | 4.41 | % | 7,732 | 334 | 5.78 | % | ||||||||||||||||
Total
|
498,485 | 6,754 | 1.81 | % | 499,484 | 8,100 | 2.17 | % | ||||||||||||||||
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
55,492 | 54,494 | ||||||||||||||||||||||
Other liabilities
|
4,768 | 4,048 | ||||||||||||||||||||||
Stockholders’ equity
|
48,548 | 44,007 | ||||||||||||||||||||||
Total
|
$ | 607,293 | $ | 602,033 | ||||||||||||||||||||
Net interest income
|
$ | 15,062 | $ | 14,815 | ||||||||||||||||||||
Rate spread
|
3.28 | % | 3.24 | % | ||||||||||||||||||||
Net yield on interest-earning assets
|
3.52 | % | 3.50 | % |