PURCHASE OF NORTHWOODS NATIONAL BANK, RHINELANDER, WISCONSIN, BRANCH OF THE BARABOO NATIONAL BANK

6 Months Ended

Jun. 30, 2014

Purchase Of Northwoods National Bank Rhinelander Wisconsin Branch Of Baraboo National Bank

PURCHASE OF NORTHWOODS NATIONAL BANK, RHINELANDER, WISCONSIN, BRANCH OF THE BARABOO NATIONAL BANK

NOTE 2 – PURCHASE OF NORTHWOODS NATIONAL BANK, RHINELANDER, WISCONSIN, BRANCH OF THE BARABOO NATIONAL BANK

On April 11, 2014, Peoples State Bank, subsidiary of PSB Holdings, Inc., purchased the following assets and liabilities of the Northwoods National Bank, Rhinelander, Wisconsin branch:

Fair value of assets acquired ($000s):
Cash and due from banks	$	17,741
Loans receivable, including accrued interest		21,365
Premises and equipment		1,368
Core deposit intangible		231
Goodwill		113
Total fair value of assets acquired	$	40,818
Fair value of liabilities assumed ($000s):
Non-interest bearing deposits	$	3,890
Interest-bearing deposits, including accrued interest		36,912
Other liabilities		16
Fair value of liabilities assumed	$	40,818

The core deposit intangible is being amortized over a five year period using a double declining balance method. In the transaction, net cash received by PSB from the seller was reduced by the purchase premium of $654.