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

9 Months Ended

Sep. 30, 2013

Psb Holdings Inc. Acquisition Of Marathon State Bank Tables

Schedule of Acquisition

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

PSB recorded a total credit mark down of $490 on Marathon’s loan portfolio on the purchase date, or 2.05% of gross purchased loan principal. Purchased impaired loan principal totaled $310 on which a $21 credit write-down was recorded. Due to the insignificant amount of total purchased impaired loans, the entire $490 credit mark down will be accreted to income as a yield adjustment based on contractual cash flows over the remaining life of the purchased loans.

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

	Quarter ended September 30, 2013
	Net interest		Noninterest		Net		Earnings
($000s)	income		income		income		per share
PSB Holdings, Inc.	$	5,422	$	1,411	$	13	$	0.01
Pro forma Totals	$	5,422	$	1,411	$	13	$	0.01

	Nine months ended September 30, 2013
	Net interest		Noninterest		Net		Earnings
($000s)	income		income		income		per share
PSB Holdings, Inc.	$	15,940	$	4,349	$	3,183	$	1.93
Pro forma Totals	$	15,940	$	4,349	$	3,183	$	1.93

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 September 30, 2012:

	Quarter ended September 30, 2012 (pro forma combined at beginning of period)
	Net interest		Noninterest		Net			Earnings
($000s)	income		income		income			per share
PSB Holdings, Inc.	$	4,813	$	1,436	$	1,358		$	0.82
Marathon State Bank		350		8		(132	)		(0.08	)
Pro forma Totals	$	5,163	$	1,444	$	1,226		$	0.74

	Nine months ended September 30, 2012 (pro forma combined at beginning of period)
	Net interest		Noninterest		Net		Earnings
($000s)	income		income		income		per share
PSB Holdings, Inc.	$	14,376	$	4,147	$	3,902	$	2.35
Marathon State Bank		1,158		880		468		0.28
Pro forma Totals	$	15,534	$	5,027	$	4,370	$	2.63