-----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, Kt5d3bDKZjG2RjxM5xf18PTMJULzKTAB3tyPBfP+avrztL22/HNauxY/DA6P8eYl YXJQs7VJWFsVXnYZqMZCyw== 0000916480-06-000021.txt : 20060126 0000916480-06-000021.hdr.sgml : 20060126 20060126170122 ACCESSION NUMBER: 0000916480-06-000021 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060126 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060126 DATE AS OF CHANGE: 20060126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PSB HOLDINGS INC /WI/ CENTRAL INDEX KEY: 0000948368 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] 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: 06554232 BUSINESS ADDRESS: STREET 1: 1905 WEST STEWART AVE CITY: WAUSAU STATE: WI ZIP: 54401 BUSINESS PHONE: 7158422191 MAIL ADDRESS: STREET 1: P.O. BOX 1686 CITY: WAUSAU STATE: WI ZIP: 54402-1686 FORMER COMPANY: FORMER CONFORMED NAME: PEOPLES STATE BANK /WI/ DATE OF NAME CHANGE: 19950721 8-K 1 psb8k12606.txt PSB FORM 8-K - 01/26/06 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 26, 2006 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 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: * Written communications pursuant to Rule 425 under the Securities Act (17 CFR 23.425) * Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) * Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) * Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) INFORMATION TO BE INCLUDED IN THE REPORT ITEM 2 - FINANCIAL INFORMATION ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On January 26, 2006, PSB Holdings, Inc. issued a news release announcing net income of $1,063,000, or $.62 per diluted share, for the quarter ended December 31, 2005, as compared to net earnings of $1,043,000, or $.60 per diluted share, for the quarter ended December 31, 2004. The Company also announced net income of $4,340,000, or $2.52 per diluted share, for the year ended December 31, 2005, as compared to net income of $3,526,000, or $2.03 per diluted share, for the year ended December 31, 2004. A copy of the news release is furnished as Exhibit 99.1 to this report.* SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS Exhibit 99.1*Press release dated January 26, 2006 * This exhibit is furnished pursuant to Item 2.02 and shall not be deemed to have been filed or incorporated by reference into any other filing by the Company under the Securities Act of 1933 or Securities Exchange Act of 1934 unless expressly so provided by specific reference in such filing. 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. Date: January 26, 2006 By: SCOTT M. CATTANACH Scott M. Cattanach Treasurer EXHIBIT INDEX TO FORM 8-K OF PSB HOLDINGS, INC. DATED JANUARY 26, 2006 Pursuant to Section 102(d) of Regulation S-T (17 C.F.R. Section 232.102(d)) 99.1* PRESS RELEASE DATED JANUARY 26, 2006 * This exhibit is furnished pursuant to Item 2.02 and shall not be deemed to have been filed or incorporated by reference into any other filing by the Company under the Securities Act of 1933 or Securities Exchange Act of 1934 unless expressly so provided by specific reference in such filing. EX-99.1 3 psbex998k.txt PSB EXHIBIT 99.1 - PRESS RELEASE AND FINANCIAL INFORMATION Exhibit 99.1 PSB ANNOUNCES 4TH QUARTER EARNINGS OF $.62 PER SHARE Wausau, Wisconsin - David K. Kopperud, President of PSB Holdings, Inc. ("PSB") and Peoples State Bank ("Peoples") today announced 2005 fourth quarter net income of $.62 per diluted share, or $1,063,000, as compared to $.60 per diluted share, or $1,043,000, in the fourth quarter of 2004. Fourth quarter net income increased 1.9% over the same period in 2004. Net income for the year ended December 31, 2005, was $2.52 per diluted share, or $4,340,000, as compared to $2.03 per diluted share, or $3,526,000, in 2004. Net income for 2005 increased 23.1% over 2004. Earnings for the year ended December 31, 2005 included the following special items: * A pre-tax realized gain of $78,000 on sale of PULSE ATM (a cooperative) stock. * Pre-tax reduction to collection expenses of $101,000 from a recovery of collection expenses recorded in 2004. The net effect of these items was an increase of $.07 per share, or $108,000. Without these items, diluted earnings per share would have been $2.45 for the year ended December 31, 2005. Earnings for the year ended December 31, 2004 included the following special items: * A pre-tax loss of $329,000 on abandonment of PSB's previous home office. * An increase to provision for income taxes of $150,000 from a tax settlement paid to Wisconsin on certain Nevada investment subsidiary earnings. * A pre-tax expense of $165,000 on closure of a Rhinelander, Wisconsin branch location. * Pre-tax increase to collection expense of $127,000 from fees written off in response to regulatory requirements. The net effect of these items was a decrease of $.30 per share, or $526,000. Without these items, diluted earnings per share would have been $.66 and $2.33 for the quarter and year ended December 31, 2004, respectively. Return on average assets based on net income for the fourth quarter and full year was .85% and .90%, respectively, as compared to .92% and .82%, respectively, for the same periods in 2004. Return on equity based on net income for the fourth quarter and full year was 11.79% and 12.39%, respectively, as compared to 12.18% and 10.66%, respectively, for the same periods in 2004. Assets at December 31, 2005 were $506.2 million, compared to $455.0 million at the end of 2004, an increase of $51.2 million or 11.2%. Total net loans were $372.4 million at December 31, 2005 compared to $343.9 million at the end of 2004, an increase of $28.5 million or 8.3%. Book value per share was $20.81 at December 31, 2005 compared to $19.55 for the same date a year ago. PSB's provision for loan losses was $30,000 in the fourth quarter 2005, versus $180,000 in the same period last year. Net charge-offs were .01% of total average loans this quarter, compared to .04% a year ago. At December 31, 2005, the allowance for loan losses was 1.11% of total loans, compared to 1.19% a year earlier. Nonperforming loans were .83% of total loans at December 31, 2005, and .80% at December 31, 2004. Although 2005 benefited from reduced provisions for loan losses (compared to 2004) due to improving credit quality and favorable resolution of some long-time problem loans, provision expense is expected to increase during 2006 over 2005 levels from continued loan growth without recurrence of the recapture of specific problem loan reserves seen during 2005. Tax adjusted net interest margin was 3.09% during the fourth quarter 2005 compared to 3.50% in the same period last year. Continued yield curve flattening continues to compress net interest spread as short-term deposit cost increases are greater than corresponding loan yield increases. Loan yield in the quarter ended December 31, 2005 was 6.26% compared to 5.83% a year ago, an increase of 43 basis points. Rate paid on interest-bearing non-maturity deposits was 2.19% during the fourth quarter 2005 compared to .87% a year ago, an increase of 132 basis points. PSB updated accounting procedures during the first quarter of 2005 to improve recognition and amortization of deferred loan origination fees and costs in accordance with Statement of Financial Accounting Standard No. 91, ACCOUNTING FOR NONREFUNDABLE FEES AND COSTS ASSOCIATED WITH ORIGINATING OR ACQUIRING LOANS ("FAS 91"). FAS 91 requires loan origination fees and direct loan origination costs to be deferred and amortized as a yield adjustment earned on the loan. Previously, these accounting adjustments for deferral of costs were made only at year-end and in prior years had an immaterial impact on the individual quarterly financial statements. The change in accounting procedure was made to simplify operations and improve the accuracy of earnings reporting. Certain financial measure and ratio comparisons between the fourth quarter 2005 and 2004 are impacted by this change. These ratios are presented on a pro-forma basis before all FAS 91 impacts as follows:
Quarter ended December 31, As Reported Pro-forma 2005 2004 2005 2004 Tax adjusted net interest margin 3.09% 3.50% 3.23% 3.64% Operating expenses to average assts 2.18% 2.33% 2.31% 2.60% Net income ($000s omitted) $ 1,063 $ 1,043 $ 1,067 $ 946 Earnings per diluted share $ 0.62 $ 0.60 $ 0.62 $ 0.55
PSB Holdings, Inc. (OTCBB:PSBQ.OB), is the parent company of Peoples. Peoples is headquartered in Wausau, Wisconsin with eight retail locations serving north central Wisconsin in Marathon, Oneida, and Vilas counties. In addition to traditional retail and commercial banking products, Peoples provides retail investments, retirement planning, commercial treasury management services, and long-term fixed rate residential mortgages. Forward Looking Statements Certain matters discussed in this news release, including those relating to the growth of PSB, its profits, 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 PSB's Form 10-K for the year ended December 31, 2004. PSB assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. (tables follow)
PSB HOLDINGS, INC. QUARTERLY FINANCIAL SUMMARY (dollars in thousands, except per share data) Quarter ended - Unaudited DEC. 31, Sept. 30, June 30, March 31, Dec.31 EARNINGS AND DIVIDENDS: 2005 2005 2005 2005 2004 Net income $ 1,063 $ 1,066 $ 1,171 $ 1,040 $ 1,043 Basic earnings per share (3) $ 0.62 $ 0.62 $ 0.68 $ 0.60 $ 0.61 Diluted earnings per share (3) $ 0.62 $ 0.62 $ 0.68 $ 0.60 $ 0.60 Dividends declared per share (3) $ 0.31 $ - $ 0.31 $ - $ 0.30 Net book value per share $ 20.81 $ 20.81 $ 20.27 $ 19.77 $ 19.55 Semi-annual dividend payout ratio 24.83% n/a 24.06% n/a 28.82% Average common shares outstanding 1,710,720 1,712,771 1,714,134 1,721,058 1,717,394 BALANCE SHEET - AVERAGE BALANCES: Loans receivable, net of allowances $ 366,224 $ 369,489 $ 367,948 $ 354,136 $ 341,997 Total assets $ 498,429 $ 493,035 $ 480,325 $ 465,083 $ 448,591 Deposits $ 394,161 $ 387,969 $ 376,252 $ 367,394 $ 353,310 Stockholders' equity $ 35,756 $ 35,143 $ 34,665 $ 33,989 $ 34,076 PERFORMANCE RATIOS: Return on average assets (1) 0.85% 0.86% 0.98% 0.91% 0.92% Return on avg. stockholders' equity (1) 11.79% 12.03% 13.55% 12.41% 12.18% Average tangible stockholders' equity to average assets 7.24% 7.14% 7.22% 7.25% 7.49% Net loan charge-offs to average loans 0.01% 0.02% 0.01% 0.00% 0.04% Nonperforming loans to gross loans 0.83% 0.71% 0.60% 0.74% 0.80% Allowance for loan loss to gross loans 1.11% 1.14% 1.15% 1.18% 1.19% Net interest rate margin (1)(2) 3.09% 3.14% 3.32% 3.40% 3.50% Net interest rate spread (1)(2) 2.61% 2.72% 2.96% 3.05% 3.12% Service fee revenue as a percent of average demand deposits (1) 2.10% 2.10% 2.56% 2.19% 2.22% Noninterest income as a percent of gross revenue 10.59% 12.06% 13.00% 11.87% 11.64% Efficiency ratio (2) 61.35% 63.25% 59.53% 59.11% 58.52% Noninterest expenses to avg. assets (1) 2.18% 2.32% 2.32% 2.30% 2.33% Stock price information: High $ 30.70 $ 32.00 $ 31.85 $ 32.20 $ 33.25 Low $ 29.75 $ 30.65 $ 30.63 $ 31.85 $ 32.00 Market value at quarter-end $ 30.70 $ 30.70 $ 30.75 $ 31.85 $ 32.10 (1) Annualized (2) The yield on tax-exempt loans and securities is computed on a tax- equivalent basis. (3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals.
PSB HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Year Ended (dollars in thousands, December 31, December 31, except per share data - unaudited) 2005 2004 2005 2004 Interest and dividend income: Loans, including fees $ 5,829 $ 5,057 $ 22,347 $ 19,207 Securities: Taxable 559 430 1,966 1,798 Tax-exempt 253 247 978 982 Other interest and dividends 213 68 473 215 Total interest and dividend income 6,854 5,802 25,764 22,202 Interest expense: Deposits 2,664 1,589 9,019 5,783 FHLB advances 544 576 2,133 2,061 Other borrowings 35 60 272 269 Junior subordinated debentures 112 - 231 - Total interest expense 3,355 2,225 11,655 8,113 Net interest income 3,499 3,577 14,109 14,089 Provision for loan losses 30 180 160 855 Net interest income after provision for loan losses 3,469 3,397 13,949 13,234 Noninterest income: Service fees 308 301 1,188 1,234 Mortgage banking 189 246 880 901 Investment and insurance sales commissions 158 139 689 484 Net gain (loss) on sale of securities - (14) 6 97 Increase in cash surrender value of life insurance 47 - 160 - Other noninterest income 110 92 545 407 Total noninterest income 812 764 3,468 3,123 Noninterest expense: Salaries and employee benefits 1,596 1,376 6,610 6,189 Occupancy and facilities 459 502 1,767 1,609 Loss on abandonment of premises and equipment - 50 - 379 Data processing and other office operations 209 153 741 655 Advertising and promotion 56 68 287 263 Other noninterest expenses 416 477 1,635 1,880 Total noninterest expense 2,736 2,626 11,040 10,975 Income before provision for income taxes 1,545 1,535 6,377 5,382 Provision for income taxes 482 492 2,037 1,856 Net income $ 1,063 $ 1,043 $ 4,340 $ 3,526 Basic earnings per share $ 0.62 $ 0.61 $ 2.53 $ 2.04 Diluted earnings per share $ 0.62 $ 0.60 $ 2.52 $ 2.03
PSB HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS December 31, 2005 unaudited, December 31, 2004 derived from audited financial statements (dollars in thousands, except per share data) - Unaudited 2005 2004 ASSETS Cash and due from banks $ 15,708 $ 12,680 Interest-bearing deposits and money market funds 988 3,265 Federal funds sold 9,908 7,379 Cash and cash equivalents 26,604 23,324 Securities available for sale (at fair value) 81,501 68,894 Loans held for sale - 342 Loans receivable, net of allowance for loan losses of $4,180 and $4,157, respectively 372,411 343,923 Accrued interest receivable 2,245 1,744 Foreclosed assets 373 7 Premises and equipment 12,632 12,432 Mortgage servicing rights, net 880 839 Federal Home Loan Bank stock (at cost) 3,017 2,874 Cash surrender value of bank-owned life insurance 4,805 - Other assets 1,690 595 TOTAL ASSETS $ 506,158 $ 454,974 LIABILITIES Non-interest-bearing deposits $ 61,345 $ 51,635 Interest-bearing deposits 339,191 306,590 Total deposits 400,536 358,225 Federal Home Loan Bank advances 54,000 52,000 Other borrowings 4,497 8,565 Junior subordinated debentures 7,732 - Accrued expenses and other liabilities 3,908 2,568 Total liabilities 470,673 421,358 STOCKHOLDERS' EQUITY Common stock - no par value with a stated value of $1 per share: Authorized - 3,000,000 shares Issued - 1,887,179 shares 1,887 1,887 Additional paid-in capital 9,655 9,672 Retained earnings 28,561 25,281 Accumulated other comprehensive income (loss) (542) 384 Treasury stock, at cost - 181,608 and 167,586 shares, respectively (4,076) (3,608) Total stockholders' equity 35,485 33,616 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 506,158 $ 454,974
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