Condensed Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2012

Parent Company Only Financial Statements

Condensed Parent Company Only Financial Statements

NOTE 24 Condensed Parent Company Only Financial Statements

The following are condensed balance sheets as of December 31, 2012 and 2011, and condensed statements of income and cash flows for the years ended December 31, 2012, 2011, and 2010, for PSB Holdings, Inc.

Balance Sheets

December 31, 2012 and 2011

Assets	2012		2011
Cash and due from banks	$	2,325	$	3,108
Investment in Peoples State Bank		66,777		62,417
Other assets		952		884
TOTAL ASSETS	$	70,054	$	66,409
Liabilities and Stockholders’ Equity
Accrued dividends payable	$	0	$	583
Senior subordinated notes		7,000		7,000
Junior subordinated debentures		7,732		7,732
Other liabilities		875		732
Total stockholders’ equity		54,447		50,362
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	70,054	$	66,409

Statements of Income

Years Ended December 31, 2012, 2011, and 2010

	2012			2011		2010
Income:
Dividends from Peoples State Bank	$	7,700		$	2,875	$	2,525
Dividends from other investments		5			6		13
Interest		10			6		4
Total income		7,715			2,887		2,542
Expenses:
Interest expense on senior subordinated notes		578			567		567
Interest expense on junior subordinated debentures		342			341		420
Transfer agent and shareholder communication		68			38		31
Other		348			95		73
Total expenses		1,336			1,041		1,091
Income before income taxes and equity in undistributed net income of Peoples State Bank		6,379			1,846		1,451
Recognition of income tax benefit		431			402		420
Net income before equity in undistributed net income of Peoples State Bank		6,810			2,248		1,871
Equity in undistributed net income of Peoples State Bank		(801	)		3,057		2,883
Net income	$	6,009		$	5,305	$	4,754

Statements of Cash Flows

Years Ended December 31, 2012, 2011, and 2010

	2012			2011			2010
Increase (decrease) in cash and due from banks:
Cash flows from operating activities:
Net income	$	6,009		$	5,305		$	4,754
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of Peoples State Bank		801			(3,057	)		(2,883	)
(Increase) decrease in other assets		(21	)		5			(55	)
(Decrease) increase in other liabilities		(2	)		28			(3	)
(Decrease) increase in dividends payable		(583	)		20			17
Net cash provided by operating activities		6,204			2,301			1,830
Cash flows from investing activities:
Purchase Marathon State Bank common stock		(5,482	)		0			0
Investment in Peoples State Bank		(5	)		0			0
Net cash used in investing activities		(5,487	)		0			0
Cash flows from financing activities:
Proceeds from exercise of stock options		9			45			0
Dividends declared		(1,247	)		(1,168	)		(1,128	)
Purchase of treasury stock		(262	)		0			0
Net cash used in financing activities		(1,500	)		(1,123	)		(1,128	)
Net increase (decrease) in cash and due from banks		(783	)		1,178			702
Cash and due from banks at beginning		3,108			1,930			1,228
Cash and due from banks at end	$	2,325		$	3,108		$	1,930