EX-99.1 3 psbex99.htm PSB EXHIBIT 99.1 - NEWS RELEASE Exhibit 99.1  (00162375.DOC;1)

Exhibit 99.1


PSB Announces 4th Quarter Earnings of $.85 Per Share


Wausau, Wisconsin [OTCBB:PSBQ.OB] – Peter W. Knitt, President and CEO of PSB Holdings, Inc. (“PSB”) and Peoples State Bank (“Peoples”) announced record December 2007 quarterly earnings of $.85 per share on net income of $1,312,000, up from $.66 per share on net income of $1,021,000 in the recent September 2007 quarter, and up from $.54 per share on net income of $873,000 in the fourth quarter of 2006.  Year to date 2007 earnings per share were $2.64 on net income of $4,140,000 compared to $2.07 per share on net income of $3,427,000 during 2006, an increase of 28% in earnings per share.


During the December 2007 quarter, PSB recognized a $200,000 decrease in income tax expense from its recent victory in Tax Court which permits a favorable calculation of interest expense deductions related to tax-exempt income that was originally disallowed upon IRS audit.  In addition, PSB incurred costs related to a severance agreement with a former executive officer.  To permit comparisons to prior period income levels, the following table outlines the impact of special items to net income and earnings per share in 2007 and 2006:


 

Three months ended

 

Year ended

Periods ended December 31, 2007

$000s

per share

 

$000s

per share

      

Net income as reported

$   1,312 

 

$    0.85 

  

$   4,140 

 

$    2.64 

 
          

Special items, net of tax effects:

         

Cost of employee severance benefit

61 

 

$    0.04 

  

61 

 

0.04 

 

Favorable Tax Court decision on TEFRA calc.

(200)

 

$  (0.13)

  

(200)

 

(0.13)

 

Interest rate swap income

–    

 

$      –    

  

(10)

 

(0.01)

 
          

Pro-forma net income

$   1,173 

 

$    0.76 

  

$   3,991 

 

$    2.54 

 


 

Three months ended

 

Year ended

Periods ended December 31, 2006

$000s

per share

 

$000s

per share

      

Net income as reported

$     873 

 

$    0.54 

  

$   3,427 

 

$    2.07 

 
          

Special items, net of tax effects:

         

Cost of employee severance benefit

101 

 

0.06 

  

101 

 

0.06 

 

Interest rate swap expense

7 

 

0.01 

  

143 

 

0.08 

 

Gain on sale of student loans

     

(39)

 

(0.02)

 

Gain on sale of vacant land held for branching

     

(236)

 

(0.14)

 

Loss on securities sale in balance sheet restructuring

     

303 

 

0.18 

 
          

Pro-forma net income

$     981 

 

$    0.61 

  

$   3,699 

 

$    2.23 

 


Return on average assets based on net income for the quarter and year end December 31, 2007 was 1.00% and .82%, respectively.  Return on average assets based on net income for the quarter and year ended December 31, 2006 was .70% and .68%, respectively.




-1-


Return on average stockholders’ equity based on net income for the quarter and year ended December 31, 2007 was 14.44% and 11.79%, respectively.  Return on equity based on net income for the quarter and year ended December 31, 2006 was 10.05% and 9.84%, respectively.  Book value per share was $23.70 at December 31, 2007 compared to $21.67 at December 31, 2006, an increase of 9.4%.


Assets at December 31, 2007 were $534.2 million compared to $501.8 million at December 31, 2006, an increase of $32.3 million, or 6.5%.  Total loans receivable were $387.1 million at December 31, 2007 compared to $369.7 million at December 31, 2006, an increase of $17.4 million, or 4.7%.  Investment securities also grew $17.2 million during the year ended December 31, 2007 primarily from a leveraged purchase of conforming mortgages funded by a new $13.5 million structured repurchase agreement during the December 2007 quarter.


Total deposits of $402.0 million at December 31, 2007 increased $10.6 million from December 31, 2006, an increase of 2.7%.  However, the retail and local deposits category increased $27.8 million, or 8.6%, which was used in part to pay down wholesale brokered certificates by $17.2 million.  During 2007, PSB also entered into new structured repurchase agreements totaling $20.5 million which were used to purchase $15.0 million in mortgage backed securities and pay down FHLB advances by $3.0 million.  Total wholesale funding at December 31, 2007 was $134.1 million, up $2.2 million, or 1.7% from total wholesale funding of $131.9 million at December 31, 2006.


PSB’s provision for loan losses was $120,000 in the fourth quarter of both 2007 and 2006.  Year to date provision for loan losses were $480,000 and $495,000 for the years ended December 31, 2007 and 2006, respectively.  Annualized net charge-offs were .10% and .01% during the December 2007 and 2006 quarters, respectively.  Net charge-offs were .03% and .05% of loan receivable during all of 2007 and 2006, respectively.


At December 31, 2007, the allowance for loan losses was 1.24% of total loans ($4,850,000), compared to 1.20% (4,478,000) a year earlier.  Nonperforming loans were .97% of total loans at December 31, 2007, down from 1.13% at September 30, 2007, and 1.14% at December 31, 2006.  The following table summarizes non-performing assets as of period end:


Non-Performing Assets as of

December 31,

(dollars in thousands)

2007

 

2006

    

Nonaccrual loans

$  3,144

 

$  4,281

Accruing loans past due 90 days or more

–   

 

–   

Restructured loans not on nonaccrual

653

 

–   

    

Total nonperforming loans

3,797

 

4,281

Foreclosed assets

653

 

464

    

Total nonperforming assets

$  4,450

 

$  4,745

    

Nonperforming loans as a % of gross loans

0.97%

 

1.14%

Total nonperforming assets as a % of total assets

0.83%

 

0.95%


Existing nonaccrual loans are spread over unrelated borrowers, with the top five largest nonaccrual relationships totaling $1.1 million principal in the aggregate (35% of total nonaccrual balances) as of December 31, 2007.  PSB applies all payments received on nonaccrual loans to principal until the loan is returned to accrual status.  




-2-


Tax adjusted net interest margin was 3.11% during the December 2007 quarter compared to 3.05% in the September 2007 quarter and 3.06% during the December 2006 quarter.  December 2007 quarterly margin improved compared to the recent September 2007 quarter due to a decline in savings, checking, and money market core deposit rates of .26% which outpaced a decline in loan yields of .01%.  The cumulative Federal Reserve discount rate decline of 1.00% which began in September 2007 has contributed to the falling rates during the December 2007 quarter.  Net interest margin was 3.12% and 3.05% during the years ended December 31, 2007, and 2006, respectively.  


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 December 31 before income tax effects:


Interest Rate Swap Net Expense

Three months ended

 

Year ended

(dollars in thousands)

December 31,

 

December 31,

 

2007

2006

 

2007

2006

      

Net monthly settlement expense

$  – 

 

$  32 

  

$   15 

 

$   89

 

Net change in unrealized fair value liability

– 

 

(20)

  

(32)

 

147

 
          

Total swap (income) expense during the period

$  – 

 

$  12 

  

$  (17)

 

$  236

 


Total noninterest income for the quarter ended December 31, was $935,000 and $865,000 in 2007 and 2006, respectively, an increase of 8.1%.  The majority of the increase during the current quarter was due to additional debit card interchange income.  PSB’s new Reward Checking account requires greater customer debit card use to obtain the premium account interest rate and other rewards.  Growth in this deposit account category during the quarter has led to the substantially increased debit card income.


Total noninterest income was $3,704,000 during the year ended 2007 compared to $3,276,000 during 2006, an increase of $428,000 or 13.1%.  However, 2006 results included 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 2006 for a gain of $389,000.  


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 restructured its balance sheet 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.


If the impact to noninterest income from the three 2006 special items were excluded, noninterest income would have been $3,687,000 in 2007 and $3,595,000 in 2006, an increase of $92,000 or 2.6%.  As noted for the December quarter, an increase in debit card interchange income of $113,000 during all of 2007 contributed significantly to the increase in noninterest income and offset a decline in deposit service fees of $33,000.  




-3-


Total noninterest expenses increased modestly during the quarter and year ended December 2007 compared to the prior year.  December 2007 quarterly operating expenses were $2,971,000 compared to $2,932,000 in the December 2006 quarter, an increase of $39,000.  For the year ended December 2007, operating expenses totaled $11,952,000 compared to $11,702,000 for 2006, an increase of $250,000, or 2.1%.


Salaries and employee benefits expense continued to run at levels less than the prior year, totaling $1,762,000 and $6,921,000 for the quarter and year ended December 31, 2007, respectively, compared to $1,809,000 and $7,057,000 for the same periods in 2006.  Lower employee health insurance expense was a significant driver to lower costs, with total savings of $73,000 during all of 2007 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.  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 130 at December 31, 2007.


Expenses other than salaries and benefits totaled $1,209,000 in the December 2007 quarter compared to $1,123,000 in the December 2006 quarter, an increase of $86,000.  Expenses other than salaries and benefits totaled $5,031,000 during all of 2007 compared to $4,645,000 for all of 2006, an increase of $386,000, or 8.3%.  Costs related to initial year compliance with Section 404 of the Sarbanes-Oxley Act (“SOX 404”) increased operating expenses $120,000 during the year ended December 2007 compared to such expenses incurred during 2006.  In addition, PSB recorded a long-term donation commitment for a qualifying community reinvestment project during 2007 totaling $47,000.  Before the SOX 404 costs and the donation commitment, 2007 operating expenses other than salaries and benefits increased $219,000 or 4.7% led by marketing costs (up $94,000), and information technology expense (up $55,000).


On December 18, 2007, PSB declared its regular semi-annual cash dividend of $.33 per share payable on January 31, 2008 to shareholders of record as of January 10, 2008, an increase over $.32 per share paid this time last year.


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

 

December 31,

September 30,

June 30,

March 31,

December 31,

Earnings and dividends:

2007

2007

2007

2007

2006

      

Net income

$       1,312

 

$       1,021

 

$       1,008

 

$          799

 

$          873

 

Basic earnings per share(3)

$         0.85

 

$         0.66

 

$         0.64

 

$         0.50

 

$         0.55

 

Diluted earnings per share(3)

$         0.85

 

$         0.66

 

$         0.64

 

$         0.50

 

$         0.54

 

Dividends declared per share(3)

$         0.33

 

$           –   

 

$         0.33

 

$           –   

 

$         0.32

 

Net book value per share

$       23.70

 

$       22.90

 

$       21.83

 

$       22.14

 

$       21.67

 

Semi-annual dividend payout ratio

21.86%

 

n/a     

 

28.48%

 

n/a     

 

27.68%

 

Average common shares outstanding

1,544,855

 

1,553,952

 

1,572,679

 

1,589,980

 

1,593,320

 
           

Balance sheet - average balances:

          
           

Loans receivable, net of allowances

$   384,069

 

$   382,474

 

$   379,084

 

$   372,448

 

$   370,256

 

Total assets

$   520,098

 

$   509,947

 

$   496,952

 

$   497,349

 

$   497,502

 

Deposits

$   395,148

 

$   395,508

 

$   384,984

 

$   387,803

 

$   388,299

 

Stockholders’ equity

$     36,044

 

$     34,636

 

$     35,135

 

$     34,692

 

$     34,463

 
           

Performance ratios:

          
           

Return on average assets(1)

1.00%

 

0.79%

 

0.81%

 

0.65%

 

0.70%

 

Return on avg. stockholders’ equity(1)

14.44%

 

11.70%

 

11.51%

 

9.34%

 

10.05%

 

Average tangible stockholders’ equity to

          

average assets(4)

6.92%

 

6.91%

 

7.11%

 

7.02%

 

6.96%

 

Net loan charge-offs to average loans(1)

0.10%

 

0.02%

 

0.00%

 

-0.01%

 

0.01%

 

Nonperforming loans to gross loans

0.97%

 

1.13%

 

0.96%

 

0.96%

 

1.14%

 

Allowance for loan loss to gross loans

1.24%

 

1.25%

 

1.21%

 

1.22%

 

1.20%

 

Net interest rate margin(1)(2)

3.11%

 

3.05%

 

3.22%

 

3.13%

 

3.06%

 

Net interest rate spread(1)(2)

2.60%

 

2.53%

 

2.67%

 

2.62%

 

2.52%

 

Service fee revenue as a percent of

          

average demand deposits(1)

2.89%

 

2.75%

 

2.61%

 

2.57%

 

2.39%

 

Noninterest income as a percent

          

of gross revenue

10.35%

 

10.37%

 

11.34%

 

9.94%

 

10.25%

 

Efficiency ratio(2)

62.21%

 

62.27%

 

63.51%

 

69.32%

 

65.68%

 

Noninterest expenses to avg. assets(1)

2.27%

 

2.24%

 

2.44%

 

2.51%

 

2.34%

 
           

Stock price information:

          
           

High

$       27.25

 

$       29.00

 

$       29.25

 

$       30.35

 

$       30.75

 

Low

$       25.05

 

$       27.10

 

$       27.00

 

$       28.00

 

$       30.15

 

Market value at quarter-end

$       26.00

 

$       27.10

 

$       27.75

 

$       28.50

 

$       30.25

 


(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

 

Year ended

(dollars in thousands,

December 31,

 

December 31,

except per share data – unaudited)

2007

2006

 

2007

2006

   

 

  

Interest and dividend income:

     

Loans, including fees

$  6,935

 

$  6,493

  

$  27,283

 

$  25,546 

 

Securities:

         

Taxable

805

 

619

  

2,665

 

2,512 

 

Tax-exempt

324

 

283

  

1,276

 

1,052 

 

Other interest and dividends

37

 

177

  

333

 

403 

 
          

Total interest and dividend income

8,101

 

7,572

  

31,557

 

29,513 

 
          

Interest expense:

         

Deposits

3,473

 

3,339

  

13,905

 

12,636 

 

FHLB advances

645

 

660

  

2,490

 

2,477 

 

Other borrowings

221

 

31

  

573

 

174 

 

Junior subordinated debentures

114

 

114

  

454

 

454 

 
          

Total interest expense

4,453

 

4,144

  

17,422

 

15,741 

 
          

Net interest income

3,648

 

3,428

  

14,135

 

13,772 

 

Provision for loan losses

120

 

120

  

480

 

495 

 
          

Net interest income after provision for loan losses

3,528

 

3,308

  

13,655

 

13,277 

 
          

Noninterest income:

         

Service fees

361

 

331

  

1,331

 

1,364 

 

Mortgage banking

207

 

254

  

871

 

885 

 

Investment and insurance sales commissions

121

 

132

  

592

 

530 

 

Net loss on sale of securities

–   

 

–   

  

–   

 

(472)

 

Increase in cash surrender value of life insurance

77

 

57

  

270

 

201 

 

Change in fair value of interest rate swap

–   

 

19

  

32

 

(147)

 

Gain on sale of land held for branching

–   

 

–   

  

–   

 

389 

 

Other noninterest income

169

 

72

  

608

 

526 

 
          

Total noninterest income

935

 

865

  

3,704

 

3,276 

 
          

Noninterest expense:

         

Salaries and employee benefits

1,762

 

1,809

  

6,921

 

7,057 

 

Occupancy and facilities

445

 

453

  

1,868

 

1,827 

 

Data processing and other office operations

189

 

180

  

796

 

741 

 

Advertising and promotion

118

 

88

  

367

 

273 

 

Other noninterest expenses

457

 

402

  

2,000

 

1,804 

 
          

Total noninterest expense

2,971

 

2,932

  

11,952

 

11,702 

 
          

Income before provision for income taxes

1,492

 

1,241

  

5,407

 

4,851 

 

Provision for income taxes

180

 

368

  

1,267

 

1,424 

 
          

Net income

$  1,312

 

$    873

  

$    4,140

 

$    3,427 

 

Basic earnings per share

$    0.85

 

$   0.60

  

$      2.65

 

$      2.08 

 

Diluted earnings per share

$    0.85

 

$   0.60

  

$      2.64

 

$      2.07 

 



-6-



PSB Holdings, Inc.

  

Consolidated Balance Sheets

  

December 31, 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

$    18,895 

 

$    14,738 

 

Interest-bearing deposits and money market funds

2,232 

 

1,048 

 

Federal funds sold

–    

 

9,756 

 
     

Cash and cash equivalents

21,127 

 

25,542 

 
     

Securities available for sale (at fair value)

97,214 

 

80,009 

 

Loans held for sale

365 

 

1,001 

 

Loans receivable, net of allowance for loan losses

387,130 

 

369,749 

 

Accrued interest receivable

2,383 

 

2,464 

 

Foreclosed assets

653 

 

464 

 

Premises and equipment, net

11,082 

 

11,469 

 

Mortgage servicing rights, net

889 

 

908 

 

Federal Home Loan Bank stock (at cost)

3,017 

 

3,017 

 

Cash surrender value of bank-owned life insurance

8,728 

 

5,900 

 

Other assets

1,597 

 

1,317 

 
     

TOTAL ASSETS

$  534,185 

 

$  501,840 

 
     

Liabilities

    
     

Non-interest-bearing deposits

$    55,470 

 

$    55,083 

 

Interest-bearing deposits

346,536 

 

336,332 

 
     

Total deposits

402,006 

 

391,415 

 
     

Federal Home Loan Bank advances

57,000 

 

60,000 

 

Other borrowings

26,407 

 

3,995 

 

Junior subordinated debentures

7,732 

 

7,732 

 

Accrued expenses and other liabilities

4,425 

 

4,251 

 
     

Total liabilities

497,570 

 

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

9,493 

 

9,645 

 

Retained earnings

34,081 

 

30,967 

 

Accumulated other comprehensive income (loss)

423 

 

(105)

 

Treasury stock, at cost - 342,197 and 297,223 shares, respectively

(9,269)

 

(7,947)

 
 

 

 

 

 

Total stockholders’ equity

36,615 

 

34,447 

 
     

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$  534,185 

 

$  501,840 

 



-7-



PSB Holdings, Inc.

       

Average Balances and Interest Rates

     

Quarter Ended December 31,

      
        
 

2007

 

2006

 

Avg. Bal.

Interest

Yield/Rate

 

Avg. Bal.

Interest

Yield/Rate

Assets

       

Interest-earning assets:

       

Loans(1)(2)

$ 388,926 

$   6,961 

 7.10%

 

$ 374,672 

$   6,518 

6.90%

Taxable securities

61,567 

805 

 5.19%

 

48,812 

619 

5.03%

Tax-exempt securities(2)

33,115 

491 

 5.88%

 

28,008 

429 

6.08%

FHLB stock

3,017 

(14)

-1.84%

 

3,017 

23 

3.02%

Other

3,648 

51 

 5.55%

 

12,545 

154 

4.87%

        

Total(2)

490,273 

8,294 

 6.71%

 

467,054 

7,743 

6.58%

        

Non-interest-earning assets:

       

Cash and due from banks

9,635 

   

11,552 

  

Premises and equipment, net

11,172 

   

11,560 

  

Cash surrender value ins.

8,099 

   

5,863 

  

Other assets

5,776 

   

5,889 

  

Allowance for loan losses

(4,857)

   

(4,416)

  
        

Total

$ 520,098 

   

$ 497,502 

  
        

Liabilities & stockholders’ equity

      

Interest-bearing liabilities:

       

Savings and demand deposits

$   83,340 

$      606 

 2.88%

 

$   72,958 

$       515

2.80%

Money market deposits

78,010 

641 

 3.26%

 

67,872 

569 

3.33%

Time deposits

184,312 

2,226 

 4.79%

 

192,601 

2,255 

4.65%

FHLB borrowings

56,728 

645 

 4.51%

 

60,000 

660 

4.36%

Other borrowings

19,980 

221 

 4.39%

 

3,302 

31 

3.72%

Junior subordinated debentures

7,732 

114 

 5.85%

 

7,732 

114 

5.85%

        

Total

430,102 

4,453 

 4.11%

 

404,465 

4,144 

4.06%

        

Non-interest-bearing liabilities:

       

Demand deposits

49,486 

   

54,868 

  

Other liabilities

4,466 

   

3,706 

  

Stockholders’ equity

36,044 

   

34,463 

  
        

Total

$ 520,098 

   

$ 497,502 

  
        

Net interest income

 

$   3,841 

   

$   3,599 

 

Rate spread

  

 2.60%

   

2.52%

Net yield on interest-earning assets

  

 3.11%

   

3.06%


(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.



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PSB Holdings, Inc.

       

Average Balances and Interest Rates

      

Years Ended December 31,

       
        
  

2007

   

2006

 
 

Avg. Bal.

Interest

Yield/Rate

 

Avg. Bal.

Interest

Yield/Rate

Assets

       

Interest-earning assets:

       

Loans(1)(2)

$ 384,265 

$ 27,387

7.13%

 

$ 380,555 

$ 25,637

6.74%

Taxable securities

52,149 

2,665

5.11%

 

55,338 

2,512

4.54%

Tax-exempt securities(2)

32,223 

1,933

6.00%

 

26,299 

1,594

6.06%

FHLB stock

3,017 

50

1.66%

 

3,017 

89

2.95%

Other

5,314 

283

5.33%

 

6,628 

314

4.74%

        

Total(2)

476,968 

32,318

6.78%

 

471,837 

30,146

6.39%

        

Non-interest-earning assets:

       

Cash and due from banks

9,987 

   

11,356 

  

Premises and equipment, net

11,312 

   

12,069 

  

Cash surrender value ins.

7,020 

   

5,271 

  

Other assets

5,691 

   

5,859 

  

Allowance for loan losses

(4,706)

   

(4,302)

  
        

Total

$ 506,272 

   

$ 502,090 

  
        

Liabilities & stockholders’ equity

      

Interest-bearing liabilities:

       

Savings and demand deposits

$   82,333 

$   2,475

3.01%

 

$   78,209 

$   2,173

2.78%

Money market deposits

71,588 

2,443

3.41%

 

66,394 

2,029

3.06%

Time deposits

187,807 

8,987

4.79%

 

194,735 

8,434

4.33%

FHLB borrowings

55,337 

2,490

4.50%

 

57,644 

2,477

4.30%

Other borrowings

12,911 

573

4.44%

 

4,719 

174

3.69%

Junior subordinated debentures

7,732 

454

5.87%

 

7,732 

454

5.87%

        

Total

417,708 

17,422

4.17%

 

409,433 

15,741

3.84%

        

Non-interest-bearing liabilities:

       

Demand deposits

49,162 

   

54,236 

  

Other liabilities

4,287 

   

3,605 

  

Stockholders’ equity

35,115 

   

34,816 

  
        

Total

$ 506,272 

   

$ 502,090 

  
        

Net interest income

 

$ 14,896

   

$ 14,405

 

Rate spread

  

2.61%

   

2.55%

Net yield on interest-earning assets

 

3.12%

   

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%.




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