EX-99.1 3 psbex99.htm PSB EXHIBIT 99.1 - NEWS RELEASE Exhibit 99.1  (00153790.DOC;1)

Exhibit 99.1



PSB Announces 3rd Quarter Earnings of $.66 Per Share


Wausau, Wisconsin [OTCBB:PSBQ.OB] – Peter W. Knitt, President and CEO of PSB Holdings, Inc. (“PSB”) and Peoples State Bank (“Peoples”) announced improved September 2007 quarterly earnings per share of $.66 on net income of $1,021,000, up from $.64 per share on net income of $1,008,000 in the recent June 2007 quarter, and up from $.60 per share on net income of $965,000 in the third quarter of 2006.  Year to date earnings per share through September 2007 were $1.79 on net income of $2,828,000 compared to $1.53 per share on net income of $2,554,000 through September 2006, an increase of 17.0% in earnings per share.


Prior year earnings during the nine months ended September 2006 were reduced from recording an interest rate swap at fair value without the ability to offset the liability against the hedged certificate of deposit.  The $10 million variable rate swap liability was prepaid in the March 2007 quarter with a final payment of $115,000.  Year to date earnings per share before the impact of marking the swap to fair value and all related swap settlement payment expense would have been $1.78 and $1.61 in 2007 and 2006, respectively.  


Return on average assets based on net income for the quarter and nine months ended September 30, 2007 was .79% and .75%, respectively.  Return on average assets based on net income for the quarter and nine months ended September 30, 2006 was .76% and .68%, respectively.


Return on average stockholders’ equity based on net income for the quarter and nine months ended September 30, 2007 was 11.70% and 10.83%, respectively.  Return on equity based on net income for the quarter and nine months ended September 30, 2006 was 11.48% and 9.73%, respectively.  Book value per share was $22.90 at September 30, 2007 compared to $21.42 for the same date a year ago, an increase of 7.0%.


Assets at September 30, 2007 were $513.2 million, compared to $501.8 million at December 31, 2006, and $500.7 million at September 30, 2006.  Total loans receivable were $380.5 million at September 30, 2007 compared to $369.7 million at December 31, 2006 and $370.0 million at September 30, 2006.  Loan growth of $10.8 million since December 31, 2006 was funded by a decrease in cash and cash equivalents of $10.9 million during the nine months ended September 30, 2007.


Total deposits of $400.1 million at September 30, 2007 increased $8.7 million from December 31, 2006, and increased $7.7 million since September 30, 2006.  However, these increases were driven by two unrelated customers whose $12.8 million in increased deposits are not expected to be retained beyond 2007.  At September 30, 2007, PSB had invested $10.0 million of these funds in short-term secured and unsecured commercial paper issued by Wisconsin based companies which are classified as securities available for sale.  None of these commercial paper investments are tied to sub-prime mortgage activities.


PSB’s provision for loan losses was $120,000 in the third quarter of both 2007 and 2006.  Year to date provision for loan losses was $360,000 and $375,000 for the nine months ended September 30, 2007 and 2006, respectively.  Annualized net charge-offs (recoveries) were .02% and (.04%) during the September 2007 and 2006 quarters, respectively.  Year to date annualized net charge-offs were .00% and .06% through September 2007 and 2006, respectively.


At September 30, 2007, the allowance for loan losses was 1.25% of total loans ($4,829,000), compared to 1.17% (4,370,000) a year earlier.  Nonperforming loans were 1.13% of total loans at September 30, 2007, 1.14% at December 31, 2006, and 1.15% at September 30, 2006.  Existing nonaccrual loans are spread over unrelated borrowers, with the top five largest nonaccrual relationships totaling $1.2 million principal



-1-


in the aggregate (33% of total nonaccrual balances).  PSB applies all payments received on nonaccrual loans to principal until the loan is returned to accrual status.  The following table summarizes non-performing assets as of period end:


Non-Performing Assets as of

September 30,

 

December 31,

(dollars in thousands)

2007

2006

 

2006

     

Nonaccrual loans

$  3,683

 

$  4,306

  

$  4,281

 

Accruing loans past due 90 days or more

–   

 

–   

  

–   

 

Restructured loans not on nonaccrual

657

 

1

  

–   

 
        

Total nonperforming loans

4,340

 

4,307

  

4,281

 

Foreclosed assets

378

 

1,111

  

464

 
        

Total nonperforming assets

$  4,718

 

$  5,418

  

$  4,745

 
        

Nonperforming loans as a % of gross loans

1.13%

 

1.15%

  

1.14%

 

Total nonperforming assets as a % of total assets

0.92%

 

1.08%

  

0.95%

 


Tax adjusted net interest margin was 3.05% during the September 2007 quarter compared to 3.22% in the June 2007 quarter and 2.99% during the September 2006 quarter.  Loan yields during the June 2007 quarter benefited from a large loan prepayment penalty as well as deferred interest income upon repayment of a separate large nonaccrual loan.  Quarterly June 2007 net interest margin would have been 3.13% before these special items.  The September 2007 quarterly net margin declined to 3.05% compared to the June 2007 quarter as loan yields (before the benefit in June 2007 from the special items) increased just .02% to 7.11% while interest-bearing non-maturity deposit costs increased .12% to 3.32%.  Year to date net margin was 3.13% through September 2007 compared to 3.05% through the nine months ended September 2006.  


Savings and demand deposit interest costs increased during the September 2007 quarter as some existing customers moved funds out of low rate “core” savings and noninterest bearing demand deposits into PSB’s new Rewards Checking account.  During June 2007, PSB introduced Rewards Checking as part of a long-term program to attract local depositors and cross-sell other retail products.  Rewards Checking currently pays an above market interest rate of 6.01% annual percentage yield on the first $25,000 to customers meeting account usage requirements including debit card usage, e-banking, and ACH deposit or payment.  Debit card interchange income, overdraft fee income, and increased technology efficiencies lower the overall net cost of the deposit to levels less than equivalent wholesale funding.  Rewards Checking is expected to become a significant funding source for PSB going forward.


During 2005, PSB entered into a $10 million interest rate swap (receive fixed, pay variable payments) to hedge the interest rate risk inherent in a fixed rate certificate of deposit that was later determined to not qualify for hedge accounting.  Eliminating the application of fair value hedge accounting in March 2006 caused PSB to mark the swap liability to fair value and generated a charge against noninterest income.  Following a decline in interest rates (which lowered the swap liability), this swap was prepaid in the March 2007 quarter with a final payment of $115,000 (swap final maturity was in October 2008).  Changes in the fair value of the swap liability and the monthly settlement payments were recorded as reductions to noninterest income.  The table below summarizes swap expense for the periods ended September 30 before income tax effects:



-2-



Interest Rate Swap Net Expense

Three months ended

 

Nine months ended

(dollars in thousands)

September 30,

 

September 30,

 

2007

2006

 

2007

2006

      

Net monthly settlement expense

$    –   

 

$     29 

  

$    15 

 

$    57

 

Net change in unrealized fair value liability

–   

 

(135)

  

(32)

 

167

 
          

Total swap (income) expense during the period

$    –   

 

$  (106)

  

$  (17)

 

$  224

 


Total noninterest income for the quarter ended September 30, was $927,000 and $912,000 in 2007 and 2006, respectively.  However, the September 2006 quarter contained several special items impacting non-interest income including the swap previously described.


Following a decision not to enter a nearby market with a stand alone de novo banking location, vacant land held for branching was sold during the September 2006 quarter for a gain of $389,000 ($236,000 after tax expense).  


In response to falling long-term market rates in September 2006 and the ability to offset a securities loss against the one-time gain on sale of land held for branching, PSB sought to restructure their balance sheet for higher future earnings and to reduce interest rate sensitivity to falling rates by selling low yielding securities for a loss and reinvesting in longer-term higher yielding securities.  During the September 2006 quarter, PSB sold $17 million of securities which generated a loss of $472,000 ($303,000 after tax benefits).  Approximately $11 million of the sales proceeds were reinvested in higher coupon securities with the remainder of the funds used to repay wholesale funding.


If the impact to noninterest income from the special items during September 2006 were excluded, noninterest income would have been $927,000 in the September 2007 quarter and $889,000 in the September 2006 quarter.  Total noninterest income for the nine months ended September 30, was $2,769,000 and $2,411,000 in 2007 and 2006, respectively.  If the impact from special items as described above was excluded, noninterest income would have been $2,752,000 through September 2007 compared to $2,718,000 through September 2006.  Year to date, a decline in deposit service fees of $63,000 has been offset by increased debit card interchange income of $66,000.


Salaries and employee benefits expense continues to run at levels less than or equal to the prior year, totaling $1,648,000 and $5,159,000 for the quarter and nine months ended September 30, 2007, respectively, compared to $1,642,000 and $5,248,000 for the same periods in the prior year.  Lower employee health insurance expense has been a significant driver to lower costs, with year to date savings through September 2007 of $91,000 compared to 2006.  Savings were achieved from more active management of self-funded plan expenses, moderately higher benefit deductibles, and a lower number of employee claims.  This level of savings is not expected to continue for the remainder of 2007.  Salaries and benefits expenses have also benefited from operational efficiencies delivered by a smaller employee base, which has declined from 139 full-time equivalent employees (FTE) at December 31, 2006 to 129 at September 30, 2007.


Expenses other than salaries and benefits totaled $1,227,000 in the September 2007 quarter compared to $1,142,000 in the September 2006 quarter, an increase of $85,000. Year to date expenses other than salaries and benefits totaled $3,822,000 through September 2007 compared to $3,522,000 through September 2006, an increase of $300,000.  Ongoing efforts related to initial year compliance with Section 404 of the Sarbanes-Oxley Act (“SOX 404”) have increased operating costs by $21,000 and $130,000 during the quarter and nine months ended September 30, 2007, respectively. In addition, PSB recorded a



-3-


long-term donation commitment for a qualifying community reinvestment project during 2007 totaling $47,000.  Before the SOX 404 costs and the donation commitment, year to date September 2007 operating expenses other than salaries and benefits increased $123,000, or 3.5% led by information technology and marketing costs.


At the April 17, 2007 annual stockholders’ meeting, PSB announced its intent to repurchase 40,000 shares (approximately 2.5% of outstanding shares) from time to time during the remainder of 2007 at current market prices.  During the September 2007 quarter, this buyback was completed when 15,000 shares were repurchased at an average price of $28.60 per share.  In addition, 9,000 shares were repurchased at an average price of $28.56 to offset shares issued to satisfy exercised PSB stock options.  Year to date through September 30, 2007, PSB repurchased a total of 59,000 shares at an average purchase price of $28.81 per share.


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 and insurance annuities, 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 “Forward - Looking Statements” in Item 1 and “Risk Factors” in Item 1A of PSB’s Form 10-K for the year ended December 31, 2006.  PSB assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.



-4-



 

PSB Holdings, Inc.

 

Quarterly Financial Summary

 

(dollars in thousands, except per share data)

  

Quarter ended – Unaudited

 
 

September 30,

June 30,

March 31,

December 31,

September 30,

Earnings and dividends:

2007

2007

2007

2006

2006

      

Net income

$      1,021

 

$      1,008

 

$         799

 

$         873

 

$          965

 

Basic earnings per share(3)

$        0.66

 

$        0.64

 

$        0.50

 

$        0.55

 

$         0.60

 

Diluted earnings per share(3)

$        0.66

 

$        0.64

 

$        0.50

 

$        0.54

 

$         0.60

 

Dividends declared per share(3)

$          –   

 

$        0.33

 

$          –   

 

$        0.32

 

$           –   

 

Net book value per share

$      22.90

 

$      21.83

 

$      22.14

 

$      21.67

 

$       21.42

 

Semi-annual dividend payout ratio

n/a   

 

28.48%

 

n/a   

 

27.68%

 

n/a   

 

Average common shares outstanding

1,553,952

 

1,572,679

 

1,589,980

 

1,593,320

 

1,600,364

 
           

Balance sheet – average balances:

          
           

Loans receivable, net of allowances

$  382,474

 

$  379,084

 

$  372,448

 

$  370,256

 

$  377,528

 

Total assets

$  509,947

 

$  496,952

 

$  497,349

 

$  497,502

 

$  503,209

 

Deposits

$  395,508

 

$  384,984

 

$  387,803

 

$  388,299

 

$  393,093

 

Stockholders’ equity

$    34,636

 

$    35,135

 

$    34,692

 

$    34,463

 

$    33,363

 
           

Performance ratios:

          
           

Return on average assets(1)

0.79%

 

0.81%

 

0.65%

 

0.70%

 

0.76%

 

Return on avg. stockholders’ equity(1)

11.70%

 

11.51%

 

9.34%

 

10.05%

 

11.48%

 

Average tangible stockholders’ equity to

          

average assets(4)

6.91%

 

7.11%

 

7.02%

 

6.96%

 

6.79%

 

Net loan charge-offs to average loans(1)

0.02%

 

0.00%

 

-0.01%

 

0.01%

 

-0.04%

 

Nonperforming loans to gross loans

1.13%

 

0.96%

 

0.96%

 

1.14%

 

1.15%

 

Allowance for loan loss to gross loans

1.25%

 

1.21%

 

1.22%

 

1.20%

 

1.17%

 

Net interest rate margin(1)(2)

3.05%

 

3.22%

 

3.13%

 

3.06%

 

2.99%

 

Net interest rate spread(1)(2)

2.53%

 

2.67%

 

2.62%

 

2.52%

 

2.47%

 

Service fee revenue as a percent of

          

average demand deposits(1)

2.75%

 

2.61%

 

2.57%

 

2.39%

 

2.71%

 

Noninterest income as a percent

          

of gross revenue

10.37%

 

11.34%

 

9.94%

 

10.25%

 

10.85%

 

Efficiency ratio(2)

62.27%

 

63.51%

 

69.32%

 

65.68%

 

62.28%

 

Noninterest expenses to avg. assets(1)

2.24%

 

2.44%

 

2.51%

 

2.34%

 

2.19%

 
           

Stock price information:

          
           

High

$      29.00

 

$      29.25

 

$      30.35

 

$      30.75

 

$      32.65

 

Low

$      27.10

 

$      27.00

 

$      28.00

 

$      30.15

 

$      30.00

 

Market value at quarter-end

$      27.10

 

$      27.75

 

$      28.50

 

$      30.25

 

$      30.35

 


(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.

(4)Tangible stockholders' equity excludes the impact of cumulative other comprehensive income (loss).



-5-




PSB Holdings, Inc.

     

Consolidated Statements of Income

     
 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

(dollars in thousands, except per share data – unaudited)

2007

2006

 

2007

2006

   

 

  

Interest and dividend income:

     

Loans, including fees

$   6,918

 

$   6,521 

  

$  20,348

 

$  19,053 

 

Securities:

         

Taxable

642

 

641 

  

1,860

 

1,893 

 

Tax-exempt

325

 

266 

  

952

 

769 

 

Other interest and dividends

128

 

68 

  

296

 

226 

 
          

Total interest and dividend income

8,013

 

7,496 

  

23,456

 

21,941 

 
          

Interest expense:

         

Deposits

3,619

 

3,275  

  

10,432

 

9,297 

 

FHLB advances

656

 

660 

  

1,845

 

1,817 

 

Other borrowings

128

 

52 

  

352

 

143 

 

Junior subordinated debentures

113

 

113 

  

340

 

340 

 
          

Total interest expense

4,516

 

4,100 

  

12,969

 

11,597 

 
          

Net interest income

3,497

 

3,396 

  

10,487

 

10,344 

 

Provision for loan losses

120

 

120 

  

360

 

375 

 
          

Net interest income after provision for loan losses

3,377

 

3,276 

  

10,127

 

9,969 

 
          

Noninterest income:

         

Service fees

339

 

380 

  

970

 

1,033 

 

Mortgage banking

215

 

198 

  

664

 

631 

 

Investment and insurance sales commissions

141

 

118 

  

471

 

398 

 

Net loss on sale of securities

–   

 

(472)

  

–   

 

(472)

 

Increase in cash surrender value of life insurance

67

 

53 

  

193

 

144 

 

Change in fair value of interest rate swap

–   

 

135 

  

32

 

(167)

 

Gain on sale of land held for branching

–   

 

389 

  

–   

 

389 

 

Other noninterest income

165

 

111 

  

439

 

455 

 
          

Total noninterest income

927

 

912 

  

2,769

 

2,411 

 
          

Noninterest expense:

         

Salaries and employee benefits

1,648

 

1,642 

  

5,159

 

5,248 

 

Occupancy and facilities

455

 

449 

  

1,423

 

1,374 

 

Data processing and other office operations

187

 

180 

  

607

 

561 

 

Advertising and promotion

96

 

63 

  

249

 

185 

 

Other noninterest expenses

489

 

450 

  

1,543

 

1,402 

 
          

Total noninterest expense

2,875

 

2,784 

  

8,981

 

8,770 

 
          

Income before provision for income taxes

1,429

 

1,404 

  

3,915

 

3,610 

 

Provision for income taxes

408

 

439 

  

1,087

 

1,056 

 
          

Net income

$   1,021

 

$      965 

  

$   2,828

 

$   2,554 

 

Basic earnings per share

$     0.66

 

$     0.60 

  

$     1.80

 

$     1.54 

 

Diluted earnings per share

$     0.66

 

$     0.60 

  

$     1.79

 

$     1.53 

 



-6-





PSB Holdings, Inc.

  

Consolidated Balance Sheets

  

September 30, 2007 unaudited, December 31, 2006 derived from audited financial statements

   

(dollars in thousands, except per share data – unaudited)

2007

2006

Assets

  
   

Cash and due from banks

$     7,336 

 

$   14,738 

 

Interest-bearing deposits and money market funds

3,214 

 

1,048 

 

Federal funds sold

4,059 

 

9,756 

 
     

Cash and cash equivalents

14,609 

 

25,542 

 
     

Securities available for sale (at fair value)

90,550 

 

80,009 

 

Loans held for sale

581 

 

1,001 

 

Loans receivable, net of allowance for loan losses

380,518 

 

369,749 

 

Accrued interest receivable

2,793 

 

2,464 

 

Foreclosed assets

378 

 

464 

 

Premises and equipment, net

11,217 

 

11,469 

 

Mortgage servicing rights, net

887 

 

908 

 

Federal Home Loan Bank stock (at cost)

3,017 

 

3,017 

 

Cash surrender value of bank-owned life insurance

6,872 

 

5,900 

 

Other assets

1,762 

 

1,317 

 
     

TOTAL ASSETS

$ 513,184 

 

$ 501,840 

 
     

Liabilities

    
     

Non-interest-bearing deposits

$   48,805 

 

$   55,083 

 

Interest-bearing deposits

351,316 

 

336,332 

 
     

Total deposits

400,121 

 

391,415 

 
     

Federal Home Loan Bank advances

56,000 

 

60,000 

 

Other borrowings

9,859 

 

3,995 

 

Junior subordinated debentures

7,732 

 

7,732 

 

Accrued expenses and other liabilities

4,100 

 

4,251 

 
     

Total liabilities

477,812 

 

467,393 

 
     

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

9,496 

 

9,645 

 

Retained earnings

33,280 

 

30,967 

 

Accumulated other comprehensive loss

(14)

 

(105)

 

Treasury stock, at cost – 342,468 and 297,223 shares, respectively

(9,277)

 

(7,947)

 
     

Total stockholders’ equity

35,372 

 

34,447 

 
     

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$ 513,184 

 

$ 501,840 

 




-7-



PSB Holdings, Inc.

       

Average Balances and Interest Rates

     

Quarter Ended September 30,

      
        
 

2007

 

2006

 

Avg. Bal.

Interest

Yield/Rate

 

Avg. Bal.

Interest

Yield/Rate

Assets

       

Interest-earning assets:

       

Loans(1)(2)

$ 387,242 

$ 6,944

 

7.11%

  

$ 381,814 

$ 6,546

 

6.80%

 

Taxable securities

49,860 

642

 

5.11%

  

57,195 

641

 

4.45%

 

Tax-exempt securities(2)

32,631 

492

 

5.98%

  

26,580 

403

 

6.02%

 

FHLB stock

3,017 

21

 

2.76%

  

3,017 

24

 

3.16%

 

Other

8,019 

107

 

5.29%

  

3,728 

44

 

4.68%

 
            

Total(2)

480,769 

8,206

 

6.77%

  

472,334 

7,658

 

6.43%

 
            

Non-interest-earning assets:

          

Cash and due from banks

9,763 

     

11,529 

    

Premises and equipment, net

11,250 

     

11,787 

    

Cash surrender value ins.

6,831 

     

5,516 

    

Other assets

6,102 

     

6,329 

    

Allowance for loan losses

(4,768)

     

(4,286)

    
            

Total

$ 509,947 

     

$ 503,209 

    
            

Liabilities & stockholders’ equity

          

Interest-bearing liabilities:

           

Savings and demand deposits

$   81,591 

$   633

 

3.08%

  

$   73,617 

$   521

 

2.81%

 

Money market deposits

72,996 

658

 

3.58%

  

65,107 

537

 

3.27%

 

Time deposits

192,017 

2,328

 

4.81%

  

198,729 

2,217

 

4.43%

 

FHLB borrowings

56,261 

656

 

4.63%

  

60,000 

660

 

4.36%

 

Other borrowings

11,550 

128

 

4.40%

  

5,133 

52

 

4.02%

 

Junior subordinated debentures

7,732 

113

 

5.80%

  

7,732 

113

 

5.80%

 
            

Total

422,147 

4,516

 

4.24%

  

410,318 

4,100

 

3.96%

 
            

Non-interest-bearing liabilities:

          

Demand deposits

48,904 

     

55,640 

    

Other liabilities

4,260 

     

3,888 

    

Stockholders’ equity

34,636 

     

33,363 

    
            

Total

$ 509,947 

     

$ 503,209 

    
            

Net interest income

 

$ 3,690

     

$ 3,558

   

Rate spread

   

2.53%

     

2.47%

 

Net yield on interest-earning assets

  

3.05%

     

2.99%

 


(1)Nonaccrual loans are included in the daily average loan balances outstanding.

(2)The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a tax rate of 34%.




-8-




PSB Holdings, Inc.

       

Average Balances and Interest Rates

     

Nine Months Ended September 30,

      
        
 

2007

 

2006

 

Avg. Bal.

Interest

Yield/Rate

 

Avg. Bal.

Interest

Yield/Rate

Assets

       

Interest-earning assets:

       

Loans(1)(2)

$ 382,725 

$ 20,426

 

7.14%

  

$ 382,593 

$ 19,119

 

6.68%

 

Taxable securities

49,038 

1,860

 

5.07%

  

57,536 

1,893

 

4.40%

 

Tax-exempt securities(2)

31,931 

1,442

 

6.04%

  

25,723 

1,165

 

6.06%

 

FHLB stock

3,017 

64

 

2.84%

  

3,017 

66

 

2.92%

 

Other

5,859 

232

 

5.29%

  

4,634 

160

 

4.62%

 
            

Total(2)

472,570 

24,024

 

6.80%

  

473,503 

22,403

 

6.33%

 
            

Non-interest-earning assets:

           

Cash and due from banks

10,115 

     

11,290 

    

Premises and equipment, net

11,358 

     

12,235 

    

Cash surrender value ins.

6,658 

     

5,071 

    

Other assets

5,567 

     

5,871 

    

Allowance for loan losses

(4,656)

     

(4,263)

    
            

Total

$ 501,612

     

$ 503,707 

    
            

Liabilities & stockholders’ equity

           

Interest-bearing liabilities:

           

Savings and demand deposits

$   81,995 

$   1,869

 

3.05%

  

$   79,899 

$   1,658

 

2.77%

 

Money market deposits

69,473 

1,802

 

3.47%

  

65,899 

1,460

 

2.96%

 

Time deposits

189,012 

6,761

 

4.78%

  

195,454 

6,179

 

4.23%

 

FHLB borrowings

54,876 

1,845

 

4.50%

  

56,850 

1,817

 

4.27%

 

Other borrowings

10,524 

352

 

4.47%

  

5,196 

143

 

3.68%

 

Junior subordinated debentures

7,732 

340

 

5.88%

  

7,732 

340

 

5.88%

 
            

Total

413,612 

12,969

 

4.19%

  

411,030 

11,597

 

3.77%

 
            

Non-interest-bearing liabilities:

           

Demand deposits

49,058 

     

54,024 

    

Other liabilities

4,044 

     

3,572 

    

Stockholders’ equity

34,898 

     

35,081 

    
            

Total

$ 501,612 

     

$ 503,707 

    
            

Net interest income

 

$ 11,055

     

$ 10,806

   

Rate spread

  

2.61%

    

2.56%

 

Net yield on interest-earning assets

 

3.13%

    

3.05%

 


(1)Nonaccrual loans are included in the daily average loan balances outstanding.

(2)The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a tax rate of 34%.



-9-