-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EnOgBBbLYMdXjBw6hgRK2xMOvx28vKtTC/xxfxflaJDdHOK8pZBOQnsd6qNla2ZR iPPk20dG7+PcHy543FNWlg== 0000916480-00-000023.txt : 20000516 0000916480-00-000023.hdr.sgml : 20000516 ACCESSION NUMBER: 0000916480-00-000023 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PSB HOLDINGS INC /WI/ CENTRAL INDEX KEY: 0000948368 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 391804877 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-26480 FILM NUMBER: 632319 BUSINESS ADDRESS: STREET 1: 1905 WEST STEWART AVE CITY: WAUSAU STATE: WI ZIP: 54401 BUSINESS PHONE: 7158422191 MAIL ADDRESS: STREET 1: 1905 WEST STEWART AVE CITY: WAUSAU STATE: WI ZIP: 54401 FORMER COMPANY: FORMER CONFORMED NAME: PSB HOLDINGS INC /WI/ DATE OF NAME CHANGE: 19950721 FORMER COMPANY: FORMER CONFORMED NAME: PEOPLES STATE BANK /WI/ DATE OF NAME CHANGE: 19950721 10-Q 1 10-Q - 03/31/2000 FOR PSB HOLDINGS, INC. FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended MARCH 31, 2000 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 0-26480 PSB HOLDINGS, INC. (Exact name of registrant as specified in charter) WISCONSIN 39-1804877 (State of incorporation) (I.R.S Employer Identification Number) 1905 WEST STEWART AVENUE WAUSAU, WISCONSIN 54401 (Address of principal executive office) Registrant's telephone number, including area code: 715-842-2191 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report), and (2) has been subject to such filing requirements for the past 90 days. Yes X No The number of common shares outstanding at March 31, 2000 was 872,967. PSB HOLDINGS, INC. FORM 10-Q QUARTER ENDED MARCH 31, 2000 PAGE NO. PART I. FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Statements of Income, Three Months Ended March 31, 2000 (unaudited) and March 31, 1999 (unaudited) 1 Condensed Consolidated Balance Sheets March 31, 2000 (unaudited) and December 31, 1999 (derived from audited financial statements) 2 Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2000 (unaudited) and March 31, 1999 (unaudited) 3 Independent Accountant's Review Report 4 Notes to Condensed Consolidated Financial Statements 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Item 3. Quantitative and Qualitative Disclosures About Market Risk 14 PART II. OTHER INFORMATION Item 1. Legal Proceedings 15 Item 2. Changes in Securities 15 Item 3. Defaults Upon Senior Securities 15 Item 4. Submission of Matters to Vote of Securities Holders 15 Item 5. Other Information 15 Item 6. Exhibits and Reports on form 8-K 15 -i- PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS PSB HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME
($ thousands except share data - unaudited) Three Months Ended March 31 2000 1999 Interest income Interest and fees on loans 4,019 3,267 Interest on investment securities Taxable 718 711 Tax-exempt 153 168 Other interest income 17 33 Total interest income 4,907 4,179 Interest expense: Deposits 2,057 1,888 Short-term borrowings 323 81 Long-term borrowings 196 81 Total interest expense 2,576 2,050 Net interest income 2,331 2,129 Provision for losses on loans 150 75 Net interest income after provision for loan losses 2,181 2,054 Non-interest income: Service fees 160 162 Net realized gain on sale of premises and equipment 57 -0- Gain on sale of loans 4 92 Investment sales commissions 46 27 Other operating income 60 46 Total non-interest income 327 327 Non-interest expenses Salaries and related benefits 1,036 758 Occupancy 234 215 Data processing and other office operations 109 108 Advertising and promotion 29 49 Director compensation and benefits 38 36 Other operating 252 261 Total non-interest expenses 1,698 1,427 Income before income taxes 810 954 Provision for income taxes 236 319 Net income $ 574 $ 635 Income per share Basis: Weighted Average of 878,616 shares in 2000 Weighted Average of 883,235 shares in 1999 Basic and diluted earnings per share $ .65 $ .72
-1- PSB HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS
($ thousands) March 31, December 31, ASSETS 2000* 1999* Cash and due from banks $ 7,338 $ 11,926 Interest bearing deposits and money market funds 196 62 Federal funds sold 4 -0- Investment securities - Held to maturity (fair values of $13,316 and $13,473 respectively) 13,718 13,843 Available for sale (at fair value) 46,489 46,489 Loans held for sale -0- -0- Loans receivable, net of allowance for loans losses of $2,237 and $2,099 in 2000 and 1999, respectively 195,224 180,524 Accrued interest receivable 2,038 1,746 Premises and equipment 3,990 3,897 Other assets 1,318 1,402 TOTAL ASSETS $270,315 $259,889 LIABILITIES Noninterest-bearing deposits $29,938 $33,657 Interest-bearing deposits 178,089 168,697 Total deposits 208,027 202,354 Short-term borrowings 16,436 21,215 Long-term borrowings 23,000 13,000 Other liabilities 1,532 2,273 Total liabilities 248,995 238,842 STOCKHOLDERS' EQUITY Common stock - no-par value, with a stated value of $2 per share - 1,000,000 shares authorized - 902,425 shares issued 1,805 1,805 Additional paid-in capital 7,159 7,159 Retained earnings 14,503 13,929 Net unrealized gain (loss) on securities available for sale, net of tax (982) (1,043) Treasury stock, at cost - 29,458 shares as of March 31, 2000 19,190 shares as of December 31, 1999 (1,165) (803) Total stockholders' equity 21,320 21,047 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $270,315 $259,889 *The consolidated balance sheet at March 31, 2000 is unaudited. See accountant's review report. The December 31, 1999 consolidated balance sheet is derived from audited financial statements.
-2- PSB HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOW
Three Months Ended ($ thousands - unaudited) March 31, 2000 1999 Cash flows from operating activities: Net income $ 574 $ 635 Provision for depreciation, and net amortization 146 125 Provisions for loan losses 150 75 Gain on sale of loans (4) (91) Loss on uncollected items 0 46 Gain on sale of premises and equipment (57) 0 Changes in operating assets and liabilities: Other assets (172) (155) Other liabilities (741) (913) Net cash provided by (used in) operating activities (104) (278) Cash flows from investing activities: Proceeds from sale and maturities of: Held to maturity securities 120 815 Available for sale securities 1,068 5,365 Payment for purchase of Held to maturity securities 0 (1,409) Available for sale securities (1,052) (4,157) Net change in loans (14,846) (298) Net change in interest-bearing deposits (134) (645) Net change in federal funds sold (4) 3,934 Proceeds from sale of premises and equipment 61 0 Capital expenditures (228) (117) Net cash provided by (used in) investing activities (15,015) 3,488 Cash flows from financing activities: Net change in deposits 5,673 (6,959) Net change in short-term borrowings (4,779) 3,203 Net change in long-term borrowings 10,000 0 Dividends paid 0 0 Purchase of stock (363) 0 Net cash provided by (used in) financing activities 10,531 (3,756) Net decrease in cash and cash equivalents (4,588) (546) Cash and cash equivalents at beginning of period 11,926 8,752 Cash and cash equivalents at end of quarter $ 7,338 $8,206 Supplemental Cash Flow Information: Cash paid during the period for : Interest 2,603 2,050 Income taxes 388 67
-3- Independent Accountant's Report Board of Directors and Stockholders PSB Holdings, Inc. Wausau, Wisconsin We have reviewed the accompanying unaudited condensed consolidated balance sheet of PSB Holdings, Inc., and Subsidiary as of March 31, 2000, and the related unaudited consolidated statements of income, and cash flows for the three-month period then ended. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying consolidated financial statements for them to be in conformity with generally accepted accounting principles. WIPFLI ULLRICH BERTELSON LLP Wipfli Ullrich Bertelson LLP May 4, 2000 Wausau, Wisconsin -4- PSB HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. The accompanying financial statements in the opinion of management reflect all adjustments which are normal and recurring in nature and which are necessary for a fair statement of the results for the periods presented. In all regards, the financial statements have been presented in accordance with generally accepted accounting principles. 2. Earnings per share of common stock is based on the weighted average number of common shares outstanding. 3. Refer to notes to the financial statements which appear in the 1999 annual report for the company's accounting policies which are pertinent to these statements.
4. Three months ended ($ thousands) 3/31/00 3/31/99 Net Income $ 574 $ 635 Change in net unrealized gain or loss on securities available for sale, net of tax 61 (211) Comprehensive income $ 635 $ 424
In June 1998, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities" (FASB 133). FASB 133 establishes new accounting and reporting requirements for derivative instruments, including certain derivative instruments embedded in other contracts and hedging activities. The standard requires all derivatives to be measured at fair value and recognized as either assets or liabilities in the statement of condition. Under certain conditions, a derivative may be specifically designated as a hedge. Accounting for the changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Adoption of the standard is required for the corporation's December 31, 2001 financial statements with early adoption allowed as of the beginning of any quarter after June 30, 1998. Management is in the process of assessing the impact and period of adoption of the standard. Adoption is not expected to result in material financial impact. -5- 4. Investment Securities The amortized cost and estimated fair value of investment securities are as follows:
Gross Estimated Amortized Unrealized Unrealized Fair ($ thousands) COST GAINS LOSSES VALUE MARCH 31, 2000 Securities held to maturity: Obligations of states and political subdivisions $ 13,718 $ 10 $ 412 $ 13,316 Securities available for sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 46,290 $ 8 $ 1,406 $ 44,892 Other equity securities 1,597 1,597 Totals $ 47,887 $ 8 $ 1,406 $ 46,489 DECEMBER 31, 1999 Securities held to maturity Obligations of states and political subdivisions $ 13,843 $ 18 $ 388 $ 13,473 Securities available for sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 47,246 $ 13 $ 1,517 $ 45,742 Other equity securities 747 747 Totals $ 47,993 $ 13 $ 1,517 $ 46,489
-6- 5. Loans The composition of gross loans (excluding loans held for sale) at March 31, 2000, and December 31, 1999, follows:
March 31, 2000 % of total December 31, 1999 % of total ($ Thousands) Commercial 50,602 25.63% 51,054 27.96% Real Estate 132,103 66.90% 118,195 64.72% Consumer 14,756 7.47% 13,375 7.32% Total $197,461 100.00% $182,624 100.00%
Gross loans outstanding increased 8.12% for the three months ended March 31, 2000: increasing to $197,461 at March 31, 2000 from $182,624 at December 31, 1999. The Company's process for monitoring loan quality includes weekly analysis of delinquencies, non-performing assets, and potential problem loans. Loans are placed on a nonaccrual status when they become contractually past due 90 days or more as to interest or principal payments. All interest accrued but not collected for loans (including applicable impaired loans) that are placed on nonaccrual or charged off is reversed to interest income. The interest on these loans is accounted for on the cash basis until qualifying for return to accrual status. Loans are returned to accrual status when all principal and interest amounts contractually due have been collected and there is reasonable assurance that repayment will continue within a reasonable time frame. A loan is considered impaired when, based on current information, it is probable that the bank will not collect all amounts due in accordance with the contractual terms of the loan agreement. Impairment is based on discounted cash flows of expected future payments using the loan's initial effective interest rate or the fair value of the collateral if the loan is collateral dependent. The aggregate amount of non-performing assets was $1,024 and $620 at March 31, 2000, and December 31, 1999, respectively. Non-performing assets are those which are either contractually past due 90 days or more as to interest or principal payments, on a nonaccrual status, or the terms of which have been renegotiated to provide a reduction or deferral of interest or principal. -7- The following table shows the amount of non-performing assets and other real estate owned as of the dates indicated.
AGGREGATE AMOUNT OF NON-PERFORMING LOANS March 31, % of total December 31, % of total 2000 LOANS 1999 LOANS Loans on a non-accrual basis Real estate - mortgage $ 454 .23% $ 225 .12% Installment loans 85 .04% 52 .03% Credit cards & related plans 0 0 Commercial & all other loans 485 .25% 343 .19% Total non-accrual $ 1,024 .52% $ 620 .34% Loans contractually past due thirty through eighty-nine days and still accruing Real estate - mortgage $ 503 .25% $ 185 .10% Installment loans 212 .11% 69 .04% Credit cards & related plans 0 0 Commercial & all other loans 1,189 .60% 173 .09% Total 30 - 89 days $ 1,904 .96% $ 427 .23% Loans contractually past due ninety days or more as to interest or principal payments Real estate - mortgage $ 0 $ 0 Installment loans 0 0 Credit cards & related plans 0 0 Commercial & all other loans 0 0 Total over 90 days $ 0 $ 0 Other real estate owned $ 0 $ 0
-8- SUMMARY OF LOAN LOSS EXPERIENCE The following table summarizes loan balances at the end of each period, changes in the allowance for loan losses arising from loans charged off and recoveries on loans previously charged off, by loan category and additions to the allowance which have been charged to expense.
Three Months Ended Year Ended ($ thousands) MARCH 31, 2000 DECEMBER 31, 1999 Allowance for loan losses at beginning of period $2,099 $1,947 Loans charged off Commercial & Industrial 0 (322) Agricultural 0 0 Real Estate - Mortgage (14) (72) Installment & Other Consumer Loans (3) (38) Total Charge Offs (17) (432) Recoveries on loans previously charged off Commercial & Industrial 0 67 Agricultural 0 0 Real Estate - Mortgage 3 7 Installment & Other Consumer Loans 2 50 Total Recoveries 5 124 Net loans charged off (12) (308) Additions charged to operations 150 460 Allowance for loan losses at end of period $2,237 $2,099
-9- Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (All $ amounts are in thousands, except per share amounts) This discussion will focus on information about the Company's financial condition and results of operations that are not otherwise apparent from the consolidated financial statements included in this report. Reference should be made to those statements presented elsewhere in this report for an understanding of the following discussion and analysis. This report contains certain of management's expectations and other forward-looking information regarding the Company. While the Company believes that these forward-looking statements are based on reasonable assumptions, all such statements involve risk and uncertainties that could cause actual results to differ materially from these contemplated in this report. A more comprehensive discussion of the risks and uncertainties which could cause actual results to be materially different from such expectations are set forth in Part I of the Company's Annual Report of Form 10-K for the year ended December 31, 1999 under the heading "Cautionary Statement Regarding Forward Looking Information." BALANCE SHEET During the first three months of 2000, total assets increased by $10,426. Fed funds sold and investments decreased $121. The decrease was due to the fact that securities proceeds are being used to fund loan growth. Total loans (excluding loans held for sale) increased $14,700. The majority of the increase in the loan portfolio was from real estate loans. Real estate loans increased $13,908 and commercial loans decreased $452. Total deposits increased $5,673. Short term borrowings decreased $4,779. Within short term borrowings, fed funds purchased decreased $3,112 and repurchase agreements decreased $1,667. Long term borrowings increased $10,000, coming from additional FHLB advances. LIQUIDITY Liquidity refers to the ability of the Company to generate adequate funds to meet the Company's need for cash. The Company manages its liquidity to provide adequate funds to support borrowing needs and deposit flow of its customers. Management views liquidity as the ability to raise cash at a reasonable cost or with a minimum of loss and as a measure of balance sheet flexibility to react to marketplace, regulatory and competitive changes. The primary sources of the Company's liquidity are marketable assets maturing within one year. At March 31, 2000, the carrying value of debt securities maturing within one year amounted to $6,049 or 10.05% of the total debt securities portfolio. The Company attempts when possible, to match relative maturities of assets and liabilities, while maintaining the desired net interest margin. Marketable assets maturing within one year will continue to be the primary source of liquidity along with stable earnings, and strong capital position. At March 31, 2000 earning assets maturing within one year amounted to $85,093. Interest bearing deposits maturing within one year totaled $81,974. -10- CAPITAL RESOURCES Stockholders' equity at March 31, 2000 increased $273, or 1.30% since December 31, 1999. This net increase was composed of: net income for the first three months of $574 and a decrease in the "Net unrealized loss on securities available for sale" of $61. Equity to assets at March 31, 2000 was 7.89%. Equity was reduced $362 by additional purchases of treasury stock. The adequacy of the Company's capital is regularly reviewed to ensure sufficient capital is available for current and future needs and is in compliance with regulatory guidelines. As of March 31, 2000, the Company's tier 1 risk-based capital ratio, total risk-based capital, and tier 1 leverage ratio were well in excess of regulatory minimums. RESULTS OF OPERATIONS Net income for the three months ended March 31, 2000, totaled $574, a decrease of $61 from the $635 earned during the same period of 1999. Earnings per share were $.65 for the three months ended March 31, 2000 and $.72 for the same period in 1999. Return on average common stockholders' equity amounted to 10.88% for the three months ended March 31, 2000; compared to 12.36% for the three months ended March 31, 1999. Return on average assets for the three months ended March 31, 2000 amounted to .87%; compared to 1.11% for the three months ended March 31, 1999. NET INTEREST INCOME Net interest income is the most significant component of earnings. For analysis purposes, interest earned on tax exempt assets is adjusted to a fully taxable equivalent basis. Average earning assets grew $14.3 million or 5.93% in the first three months of 2000. The annualized net interest margin for the first three months of 2000 was 3.89% or 25 basis points less than the 4.14% margin in the first three months of 1999. The interest rate spread also decreased, to 3.12% from 3.32% reported for March 31, 2000. The Company's net interest income was impacted by the interest rate environment encountered in the first three months of 2000 as compared to 1999. The higher rate environment increased our yields on earning assets to 8.03% compared to 7.98% in 1999. However, our costs for interest bearing deposits increased to 4.91% from 4.66% PROVISION FOR CREDIT LOSSES Management determines the adequacy of the allowance for credit losses based on past loan experience, current economic conditions, composition of the loan portfolio, and the potential for future loss. Accordingly, the amount charged to expense is based on management's evaluation of the loan portfolio. It is the Company's policy that when available information confirms that specific loans -11- and leases, or portions thereof, including impaired loans, are uncollectible, these amounts are promptly charged off against the allowance. The provision for credit losses was $150 for the three months ended March 31, 2000 and $75 for the three months ended March 31, 2000. The allowance for credit losses as a percentage of gross loans outstanding was $2,237 or 1.13% of total loans on March 31, 2000, compared to $2,099 or 1.15% of total loans on December 31, 1999. Net charge-offs as a percentage of average loans outstanding were .01% during the three months ended March 31, 2000 and .01% during the first three months of 1999. Non-performing loans are reviewed to determine exposure for potential loss within each loan category. The adequacy of the allowance for credit losses is assessed based on credit quality and other pertinent loan portfolio information. The adequacy of the reserve and the provision for credit losses is consistent with the composition of the loan portfolio and recent credit quality history. NON-INTEREST INCOME Non-interest income of $327 during the three months ended March 31, 2000, was the same as during the three months ended March 31, 1999. Fee income on deposit accounts decreased $14 to $139 during the three months ended March 31, 2000, from $153 during three months ended March 31, 1999. Gain on the sale of loans decreased $88 to $4 for the three months ended March 31, 2000 from $92 for the three months ended March 31, 1999. Gain was recognized of $57 from an easement required to be sold to the City of Wausau for road construction. Other non-interest income increased $45 including a $19 increase in commissions from investment product sales. NON-INTEREST EXPENSE Non-interest expenses increased 18.99% to $1,698 for the three months ended March 31, 2000, from $1,427 for the three months ended March 31, 1999. The Company instituted an incentive compensation program for 2000 and is expensing the estimated costs of the program throughout 2000. The Company is expanding the use of technology throughout the bank in order to provide increased customer service and allow for more efficient consolidation of its operational areas. The Company has placed emphasis on increased productivity and standardization of programs and procedures throughout all of its locations. -12- KEY OPERATING RATIOS (unaudited) Ended March 31, 2000
Three Month Period 2000 1999 Return on assets (net income divided by average assets) (1) .87% 1.11% Return on Average Equity (net income divided by average equity) (1) 10.88% 12.36% Average Equity to Average Assets 7.99% 9.01% Interest Rate Spread (difference between average yield on interest earning assets and average cost of interest bearing liabilities) (1) (2) 3.12% 3.32% Net Interest Margin (net interest income as a percentage of average interest earning assets) (1) (2) 3.89% 4.14% Non-interest Expense to average assets (1) 2.58% 2.52% Allowance for loan losses to total loans at end of period 1.13% 1.32% (1) Annualized (2) Tax exempt income has been adjusted to its fully taxable equivalent with a 34% tax rate.
-13- SELECTED FINANCIAL DATA The following table presents consolidated financial data of PSB Holdings, Inc. and Subsidiary.
Three Months Ended March 31 2000 1999 (Dollars in thousands, except per share amounts) FINANCIAL HIGHLIGHTS: Earnings and Dividends: Net interest revenue $2,331 $2,129 Provision for credit losses 150 75 Other noninterest income 327 327 Other noninterest expense 1,698 1,427 Net income 574 635 Per common share Basic and diluted earnings .65 .72 Dividends declared 0 0 Book value 24.42 23.75 Average common shares 878,616 883,235 Dividend payout ratio 0 0 Balance Sheet Summary: Loans net of unearned income 195,224 152,017 Assets 270,315 29,246 Deposits 208,027 192,841 Shareholders equity 21,320 20,641 Average balances: Loans net of unearned income 188,247 151,652 Assets 263,364 227,383 Deposits 204,245 192,462 Shareholders equity 21,138 20,641 Performance Ratios: Return on average assets (1) .87% 1.11% Return on average common equity (1) 10.88% 12.36% Tangible Equity to assets 8.25% 9.01% Net loan charge-offs as a percentage of average loans .01% .05% Nonperforming assets as a percentage of average loans .54% .41% Net interest margin (1) (tax adjusted) 3.89% 4.14% Efficiency ratio (tax adjusted) 62.04% 56.12% Liquidity ratio 7.62% 33.18% Fee revenue as a percentage of average assets (1) .24% .27% (1) annualized
-14- ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK There has been no material change in the information provided in response to Item 7A of the Company's Form 10-K for the year ended December 31, 1999. -14- PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Not Applicable ITEM 2. CHANGES IN SECURITIES Not Applicable ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not Applicable ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS Not Applicable ITEM 5. OTHER INFORMATION Not Applicable ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K: The following exhibits required by Item 601 of Regulation S-K are filed with the Securities and Exchange Commission as part of this report. Exhibit NUMBER DESCRIPTION 3.1 Restated Articles of Incorporation, as amended (incorporated by reference to Exhibit 4(a) to the Company's Current Report on Form 8-K dated May 30, 1995) 3.2 Bylaws (incorporated by reference to Exhibit 4(b) to the Company's Current Report on Form 8-K dated May 30, 1995) 4.1 Articles of Incorporation and Bylaws (see Exhibits 3.1 and 3.2) 10.1 Bonus Plan of Directors of the Bank (incorporated by reference to Exhibit 10(a) to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995)* -15- 10.2 Bonus Plan of Officers and Employees of the Bank* (incorporated by reference to Exhibit 10(b) to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995)* 10.3 Non-Qualified Retirement Plan for Directors of the Bank (incorporated by reference to Exhibit 10(c) to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995)* 21.1 Subsidiaries of the Company (incorporated by reference to Exhibit 22 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995) 27.1 Financial Data Schedule (electronic filing only) *Denotes Executive Compensation Plans and Arrangements (b) Reports on Form 8-K: None. -15- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PSB HOLDINGS, INC. May 15, 2000 TODD R. TOPPEN Todd R. Toppen Secretary and Controller (On behalf of the Registrant and as Principal Financial Officer) -17- EXHIBIT INDEX TO FORM 10-Q OF PSB HOLDINGS, INC. FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000 Pursuant to Section 102(d) of Regulation S-T (17 C.F.R. Section 232.102(d)) EXHIBIT 27 - FINANCIAL DATA SCHEDULE Exhibits required by Item 601 of Regulation S-K which have been previously filed and are incorporated by reference are set forth in Item 6 of the Form 10-Q to which this Exhibit Index relates. EX-27 2 ART. 9 FDS FOR 3-MONTHS 10-Q ENDED MARCH 31, 2000
9 1,000 3-MOS DEC-31-2000 MAR-31-2000 7,338 196 4 0 46,489 13,718 13,316 197,461 2,237 270,315 208,027 16,436 1,532 23,000 0 0 1,805 19,515 270,315 4,019 871 17 4,907 2,057 2,576 2,331 150 0 1,698 810 810 0 0 574 .65 .65 3.57 869 0 0 1,904 2,099 17 5 2,237 2,237 0 0
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