Condensed Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Parent Company Only Financial Statements

NOTE 24 Condensed Parent Company Only Financial Statements

The following are condensed balance sheets as of December 31, 2013 and 2012, and condensed statements of income and cash flows for the years ended December 31, 2013, 2012, and 2011, for PSB Holdings, Inc.

Balance Sheets

December 31, 2013 and 2012

Assets	2013		2012
Cash and due from banks	$	3,502	$	2,325
Investment in Peoples State Bank		66,801		66,777
Other assets		840		952
TOTAL ASSETS	$	71,143	$	70,054
Liabilities and Stockholders’ Equity
Accrued dividends payable	$	644	$	0
Other borrowings		1,500		0
Senior subordinated notes		4,000		7,000
Junior subordinated debentures		7,732		7,732
Other liabilities		514		875
Total stockholders’ equity		56,753		54,447
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	71,143	$	70,054

Statements of Income

Years Ended December 31, 2013, 2012, and 2011

	2013		2012			2011
Income:
Dividends from Peoples State Bank	$	4,000	$	7,700		$	2,875
Dividends from other investments		6		5			6
Interest		5		10			6
Total income		4,011		7,715			2,887
Expenses:
Interest on other borrowings		54		0			0
Interest expense on senior subordinated notes		184		578			567
Interest expense on junior subordinated debentures		341		342			341
Transfer agent and shareholder communication		47		68			38
Other		136		348			95
Total expenses		762		1,336			1,041
Income before income taxes and equity in undistributed net income of Peoples State Bank		3,249		6,379			1,846
Recognition of income tax benefit		293		431			402
Net income before equity in undistributed net income of Peoples State Bank		3,542		6,810			2,248
Equity in undistributed net income of Peoples State Bank		1,202		(801	)		3,057
Net income	$	4,744	$	6,009		$	5,305

Statements of Cash Flows

Years Ended December 31, 2013, 2012, and 2011

	2013			2012			2011
Increase (decrease) in cash and due from banks:
Cash flows from operating activities:
Net income	$	4,744		$	6,009		$	5,305
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of Peoples State Bank		(1,202	)		801			(3,057	)
(Increase) decrease in other assets		147			(21	)		5
Increase (decrease) in other liabilities		(79	)		(2	)		28
Increase (decrease) in dividends payable		644			(583	)		20
Net cash provided by operating activities		4,254			6,204			2,301
Cash flows from investing activities:
Purchase Marathon State Bank common stock		(19	)		(5,482	)		0
Investment in Peoples State Bank		0			(5	)		0
Net cash used in investing activities		(19	)		(5,487	)		0
Cash flows from financing activities:
Repayment of senior subordinated notes		(3,000	)		0			0
Proceeds from other borrowings		2,000			0			0
Repayment of other borrowings		(500	)		0			0
Proceeds from exercise of stock options		0			9			45
Dividends declared		(1,289	)		(1,247	)		(1,168	)
Purchase of treasury stock		(269	)		(262	)		0
Net cash used in financing activities		(3,058	)		(1,500	)		(1,123	)
Net increase (decrease) in cash and due from banks		1,177			(783	)		1,178
Cash and due from banks at beginning		2,325			3,108			1,930
Cash and due from banks at end	$	3,502		$	2,325		$	3,108