PSB HOLDINGS, INC. ACQUISITION OF MARATHON STATE BANK (Tables)

6 Months Ended

Jun. 30, 2013

Psb Holdings Inc. Acquisition Of Marathon State Bank Tables

Schedule of Acquisition

The following table outlines the fair value of Marathon assets and liabilities acquired including determination of the gain on bargain purchase using an accounting date of June 1, 2012. A core deposit intangible was not recorded on the purchase as the fair value calculation determined it was insignificant.

Cash purchase price	$	5,505
Fair value of assets acquired:
Cash and due from banks		20,392
Securities available for sale		50,547
Loans receivable		23,760
Short-term commercial paper and bankers’ acceptances		11,713
Foreclosed assets		—
Premises and equipment		402
Core deposit intangible		—
Accrued interest receivable and other assets		550
Total fair value of assets acquired		107,364
Fair value of liabilities assumed:
Non-interest bearing deposits		23,255
Interest-bearing deposits		77,611
Accrued interest payable and other liabilities		142
Total fair value of liabilities assumed		101,008
Fair value of net assets acquired		6,356
Gain on bargain purchase	$	851

Results of operations of the quarterly and year to date periods ended June 30, 2013:

	Quarter ended June 30, 2013
	Net interest		Noninterest		Net		Earnings
($000s)	income		income		income		per share
PSB Holdings, Inc.	$	5,317	$	1,523	$	1,561	$	0.95
Pro forma Totals	$	5,317	$	1,523	$	1,561	$	0.95

	Six months ended June 30, 2013
	Net interest		Noninterest		Net		Earnings
($000s)	income		income		income		per share
PSB Holdings, Inc.	$	10,518	$	2,938	$	3,170	$	1.92
Pro forma Totals	$	10,518	$	2,938	$	3,170	$	1.92

Schedule of Pro Forma Summary Financial Information Including Acquisition of Marathon State Bank

Pro forma combined results of operations as if combination occurred at the beginning of the quarterly and year to date periods ended June 30, 2012:

	Quarter ended June 30, 2012 (pro forma combined at beginning of period)
	Net interest		Noninterest		Net		Earnings
($000s)	income		income		income		per share
PSB Holdings, Inc.	$	4,747	$	1,469	$	1,364	$	0.82
Marathon State Bank		382		860		523		0.31
Pro forma Totals	$	5,129	$	2,329	$	1,887	$	1.13

	Six months ended June 30, 2012 (pro forma combined at beginning of period)
	Net interest		Noninterest		Net		Earnings
($000s)	income		income		income		per share
PSB Holdings, Inc.	$	9,563	$	2,711	$	2,544	$	1.53
Marathon State Bank		808		872		600		0.36
Pro forma Totals	$	10,371	$	3,583	$	3,144	$	1.89