-----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, U8/dYsJ/eO5NAc+hI3GKPbr2B+Y4H+SN0/o6KIHzpWuzDv6Rqf7FGjgQLia/+DPr F1V4yPwRZbr0SvxJgVI/Wg== 0000916480-03-000016.txt : 20030124 0000916480-03-000016.hdr.sgml : 20030124 20030124160838 ACCESSION NUMBER: 0000916480-03-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030124 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20030124 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26480 FILM NUMBER: 03524271 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: PEOPLES STATE BANK /WI/ DATE OF NAME CHANGE: 19950721 8-K 1 psb8k124.txt PSB HOLDINGS, INC. FORM 8-K - 01/24/03 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 _________________________ Date of Report (date of earliest event reported): JANUARY 24, 2003 PSB HOLDINGS, INC. (Exact name of registrant as specified in its charter) WISCONSIN 0-26480 39-1804877 (State or other (Commission File (IRS Employer jurisdiction of Number) Identification incorporation) Number) 1905 W. STEWART AVENUE WAUSAU, WI 54401 (Address of principal executive offices, including Zip Code) (715) 842-2191 Registrant's telephone number, including area code INFORMATION TO BE INCLUDED IN THE REPORT ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE. On January 24, 2003, PSB Holdings, Inc. reported net income of $1,332,000, or $.80 per share, for the fourth quarter ended December 31, 2002, as compared to net earnings of $873,000, or $.52 per share, for the fourth quarter ended December 31, 2001. The Company also reported net income of $4,365,000 or $2.61 per share ($2.60 fully diluted), for the year ended December 31, 2002 compared to net income of $3,366,000, or $2.00 per share, for the 2001 fiscal year. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (C) EXHIBITS. 99.1 Press release dated January 24, 2003 ITEM 9. REGULATION FD DISCLOSURE On January 24, 2003, PSB Holdings, Inc. issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference. 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 hereunto duly authorized. PSB HOLDINGS, INC. SCOTT M. CATTANACH Date: January 24, 2003 By: Scott M. Cattanach Treasurer EXHIBIT INDEX TO FORM 8-K OF PSB HOLDINGS, INC. DATED JANUARY 24, 2003 Pursuant to Section 102(d) of Regulation S-T (17 C.F.R. Section 232.102(d)) 99.1 PRESS RELEASE DATED JANUARY 24, 2003 EX-99.1 4 psbex99.txt PSB HOLDINGS, INC. EXHIBIT 99.1 Exhibit 99.1 PSB Announces 4th Consecutive Year of Record Earnings Wausau, Wisconsin - January 24, 2002 HIGHLIGHTS o Calendar 2002 diluted earnings per share (EPS) of $2.60 compared to $2.00 in 2001. o Quarterly diluted EPS of $.80, up 54% over prior year quarter. o Asset growth of 8% to $371 million compared to December 2001. o Calendar 2002 return on average equity of 15.97%, up 2% over 2001. o Record year-end dividend of $.375 per share to be paid January 27, 2003. PSB Holdings, Inc. (OTCBB:PSBQ.OB), parent company of Peoples State Bank of Wausau, Wisconsin today reported fourth quarter December 2002 earnings of $.80 per share, compared to $.52 per share during the fourth quarter of 2001. Calendar 2002 earnings were $2.61 per share ($2.60 fully diluted) compared to $2.00 in 2001. Book value increased to $17.59, compared to $15.10 at December 2001. A 2 for 1 stock split was effective November 19, 2002. All per share information has been updated to reflect the split. Financial performance is expressed in thousands, except per share data. Peoples State Bank is headquartered in Wausau, Wisconsin with seven retail locations serving north central Wisconsin in Marathon, Lincoln, Oneida, and Vilas counties. In addition to traditional loan and deposit products, the Bank provides investments and retirement planning and long-term fixed rate residential mortgages. Net income for the quarter ended December 31, 2002 was $1,332 compared to $1,051 in the third quarter of 2002 and $873 in December 2001. Operating results for the fourth quarter 2002 generated an annualized return on average assets (ROA) and return on average equity (ROE) of 1.45% and 18.43%, respectively. Comparable ratios for the same quarter in 2001 were ROA of 1.05% and ROE of 13.60%. Net income for the year ended December 31, 2002 was $4,365 compared to $3,366 in 2001, an increase of 30% and the 4{th} consecutive year of record earnings. ROA and ROE were 1.25% and 15.97% in 2002, respectively, compared to 1.05% and 13.96% in 2001. NET INTEREST INCOME Improved net interest income was a significant contributor to increased earnings. Net interest income increased $354 from $2,934 for the quarter ended December 31, 2001 to $3,288 for the current quarter ended December 31, 2002. Tax-adjusted net interest margin as a percent of average interest earning assets remained the same as the year earlier quarter at 3.89%. Net interest margin for calendar 2002 was 3.95% compared to 3.73% during calendar 2001. Also contributing to the increase in net interest income during 2002 was growth in total average loans of $25,597, or 11% over the comparable year-ago quarter. Total assets increased to $371,468 at December 31, 2002, an increase of 8% over December 31, 2001. The Company holds a substantial amount of adjustable rate commercial real estate loans whose yield is based on the prime rate, which decreased during November 2002. Although the cost of funding sources is closely managed, management expects the net interest margin to decrease during the first quarter of 2003 by up to 10 basis points as a result of the downward pricing of adjustable rate loans. However, net interest income dollars are expected to increase due to continued loan growth during the first quarter of 2003. SERVICE FEE AND NONINTEREST INCOME Noninterest income grew $242 in the fourth quarter 2002 to $1,040 compared to $798 in 2001. For the year, noninterest income increased 48% from $2,065 in 2001 to $3,048 in 2002. The majority of this growth was from an increase of income from the sale of long-term fixed rate mortgage loans. Gain on sale of such loans during the quarter was $850 (before a valuation allowance of $269) in December 2002 compared to $537 during December 2001. The majority of loans sold to outside investors continue to be serviced by the Bank directly with the customer. The valuation allowance was required to recognize a decrease in the fair value of these servicing rights as long-term mortgage financing rates fell towards the end of 2002 increasing the likelihood of prepayments. At December 31, 2002, the Bank serviced over $95 million of loans for the Federal Home Loan Bank of Chicago compared to $36 million in the prior year period. For the year 2002, gain on sale of loans, net of provision for valuation allowances was $1,223 compared to $683 during 2001. President and CEO David Kopperud remarked, "Peoples was the leading local bank home lender in Marathon County during 2002 serving the housing finance needs of almost 1,400 families in our communities." Management does not expect the current level of mortgage refinancing income to continue in 2003. Therefore, the Company intends to replace this income with ongoing servicing fees of the existing mortgage portfolio and additional investment and insurance sales income. The Bank recently increased the number of commissioned investment sales professionals on staff. Executive Vice President David Svacina recently announced "Peoples is proud to offer our customers two additional sales professionals in our Wausau - Eastside and Rhinelander, Wisconsin locations". OPERATING EXPENSES Noninterest operating expenses increased $66 to $2,072 in December 2002 compared to $2,006 during December 2001, an increase of 3.3%. However, operating costs as a percentage of average assets decreased from 2.42% in December 2001 to 2.26% in the current quarter. For the quarter, the majority of the increase in operating expenses was from additional data processing and operations costs. These additional operating costs have been offset by increased revenue, as the expense efficiency ratio has improved from 52.20% in December 2001, to 46.42% in the current quarter. For the year, operating expenses increased $912, or 12.5%, from $7,315 in 2001 to $8,227 in 2002. However, the annual efficiency ratio improved from 54.50% in 2001 to 50.68% in 2002. Even if the additional income over 2001 from the gain on sale of loans is excluded from 2002, the efficiency ratio improved compared to 2001. Management believes the Company's core operations continue to operate efficiently and additional operating costs are incurred when supported by additional revenue. The Company opened a full service brick and mortar location in Rhinelander, Wisconsin during autumn 2002. Management has budgeted for substantial growth in that location during 2003 to offset the additional fixed and operating costs. Prior to opening the new location, the Company operated a grocery store branch which held over $22 million in loans receivable after its first 4 years as Bank personnel established strong contacts in the Rhinelander community. The Company plans to continue to operate the grocery store branch during the coming year. Increased loan activity at the Rhinelander location is anticipated to be funded with cash flow from maturing investment securities, increased deposits at the Rhinelander locations, and wholesale funds as needed. Executive Vice- President David Svacina noted "Growth at our Rhinelander location is important to net income and margin growth during 2003. The Bank experienced strong growth in this community with limited customer facilities, and we are excited about the advantages we can provide our customers with the convenient new full service location." CREDIT QUALITY AND CAPITALIZATION The Company ceases to accrue interest on loans which are 90 days past due and considers them nonperforming loans. Nonperforming loans also includes restructured loans until 6 consecutive monthly payments are received under the new loan terms. During 2002, the Company aggressively managed past due customers and lowered the level of nonperforming loans to gross loans from 1.68% at December 2001 to .94% at December 2002. The Company also tracks delinquencies on a contractual basis quarter to quarter. Loans contractually delinquent 30 days or more as a percentage of gross loans were .87% and 1.68% at December 31, 2002 and 2001, respectively. The allowance for loan losses was 1.22% of gross loans at December 2002 compared to 1.24% at December 2001. Management reviews the activity in identified problem loans weekly and recognizes adequate and reasonable loan loss reserves as required. Average tangible stockholder's equity was 7.71% during the quarter ended December 2002 compared to 7.61% in the prior year quarter. Management believes the Company to be well capitalized at December 31, 2002 and during 2003 based on planned asset growth. Although the Company will continue a buyback program of purchasing up to 1% of outstanding shares in 2003, management anticipates retaining capital to support asset growth while continuing a cash dividend to shareholders. Forward Looking Statements Certain matters discussed in this news release, including those relating to the growth of the Company and future interest rates, are forward- looking statements and are made pursuant to the safe harbor provisions of the Securities Reform Act of 1995. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in this release. Among other things, these risks and uncertainties include the strength of the economy, the effects of government policies, including, in particular, interest rate policies, and other risks and assumptions described under "Cautionary Statement Regarding Forward Looking Information" in Item 1 of the company's Form 10-K for the year ended December 31, 2001. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. (tables follow)
PSB Holdings, Inc. (Unaudited) Financial Highlights Three Months Ended Twelve Months Ended (Dollars in Thousands, December 31, December 31, Except per Share Data) 2002 2001 2002 2001 EARNINGS Net Income $ 1,332 $ 873 $ 4,365 $ 3,366 Diluted Earnings per Share 0.80 0.52 2.60 2.00 Net Book Value per Share 17.59 15.10 17.59 15.10 PERIOD END BALANCE SHEET Gross Loans Receivable $259,173 $239,542 $259,173 $239,542 Total Assets 371,468 344,296 371,468 344,296 Deposits 297,831 273,635 297,831 273,635 Borrowings 41,302 42,327 41,302 42,327 KEY EARNINGS RATIOS (ANNUALIZED AND TAX ADJUSTED) Return on Average Assets 1.45% 1.05% 1.25% 1.05% Return on Stockholders' Equity 18.43% 13.60% 15.97% 13.96% Net Interest Margin 3.89% 3.89% 3.95% 3.73% Efficiency Ratio 46.42% 52.20% 50.68% 54.50% CREDIT QUALITY AND CAPITALIZATION Allowance for Loan Losses To Gross Loans 1.22% 1.24% 1.22% 1.24% Net Loans Charge-offs to Average Loans 0.21% 0.11% 0.33% 0.14% Average Tangible Stockholders' Equity to Average Assets 7.71% 7.61% 7.66% 7.53% SHARE PRICE INFORMATION High $ 25.00 $ 16.70 $ 25.00 $ 20.00 Low 20.55 15.38 16.63 13.50 Market Value at Period End 25.00 16.70 25.00 16.70
PSB Holdings, Inc. Consolidated Statements of Income Three Months Ended Twelve Months Ended (Dollars in Thousands, December 31, December 31, Except per Share Data - Unaudited) 2002 2001 2002 2001 Interest Income: Interest and Fees on Loans $ 4,556 $ 4,524 $ 18,022 $ 19,263 Interest on Securities: Taxable 691 723 2,724 2,866 Tax-exempt 224 217 898 775 Other Interest and Dividends 68 107 271 523 Total Interest Income 5,539 5,571 21,915 23,427 Interest Expense: Deposits 1,640 2,007 6,835 9,770 Short-term Borrowings 34 53 149 432 Long-term FHLB Advances 577 577 2,289 2,266 Total Interest Expense 2,251 2,637 9,273 12,468 Net Interest Income 3,288 2,934 12,642 10,959 Provision for Loan Losses 300 440 1,110 890 Net Interest Income after Provision for Loan Losses 2,988 2,494 11,532 10,069 Noninterest Income: Service Fees 327 267 1,217 1,010 Gain on Sale of Loans 850 537 1,492 683 Provision for Valuation Allowance (269) - (269) - Investment and Insurance Sales Commissions 61 33 250 183 Other Noninterest Income 71 (39) 358 189 Total Noninterest Income 1,040 798 3,048 2,065 Noninterest Expense: Salaries and Employee Benefits 1,192 1,309 4,927 4,419 Occupancy 262 214 1,094 917 Data Processing and Other Office Operations 170 145 583 523 Advertising and Promotion 65 55 319 307 Other Noninterest Expenses 383 283 1,304 1,149 Total Noninterest Expense 2,072 2,006 8,227 7,315 Income Before Provision for Income Taxes 1,956 1,286 6,353 4,819 Provision for Income Taxes 624 413 1,988 1,453 Net Income $ 1,332 $ 873 $ 4,365 $ 3,366 Basic Earnings per Share $ 0.80 $ 0.52 $ 2.61 $ 2.00 Diluted Earnings per Share $ 0.80 $ 0.52 $ 2.60 $ 2.00
PSB Holdings, Inc. Consolidated Balance Sheets December 31, 2002 Unaudited, December 31, 2001 Derived from Audit Financial Statements) (Dollars in Thousands, Except per Share Data) 2002 2001 Assets Cash and Due from Banks $ 15,890 $ 16,736 Interest-bearing Deposits and Money Market Funds 5,490 3,539 Federal Funds Sold 172 5,275 Securities: Held to Maturity (Fair Value of $20,355 in 2001) 20,287 Available for Sale (At Fair Value) 81,056 50,157 Federal Home Loan Bank Stock (At Cost) 2,264 2,151 Loans Held for Sale 949 1,403 Loans Receivable, Net of Allowance for Loan Losses of $3,158 And $2,969, Respectively 256,015 236,574 Accrued Interest Receivable 1,732 1,873 Foreclosed Assets, Net 573 421 Premises and Equipment 6,158 4,755 Mortgage Servicing Rights, Net 697 284 Other Assets 472 841 Total Assets $ 371,468 $ 344,296 Liabilities Non-interest-bearing Deposits $ 45,458 $ 41,507 Interest-bearing Deposits 252,373 232,128 Total Deposits 297,831 273,635 Short-term Borrowings 3,302 4,327 Long-term Federal Home Loan Bank Advances 38,000 38,000 Accrued Expenses and Other Liabilities 3,033 2,984 Total Liabilities 342,166 318,946 Stockholders' Equity Common Stock - No Par Value with a Stated Value of $1 per Share: Authorized - 3,000,000 Shares Issued - 1,804,850 Shares 1,805 1,805 Additional Paid-in Capital 7,150 7,159 Retained Earnings 21,607 18,186 Unrealized Gain on Securities Available for Sale, Net of Tax 1,306 491 Treasury Stock, at Cost - 138,748 and 125,440 Shares, Respectively (2,566) (2,291) Total Stockholders' Equity 29,302 25,350 Total Liabilities and Stockholders' Equity $ 371,468 $ 344,296
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