8-K

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):  September 21, 2009

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))

Section 5 – Corporate Governance and Management

Item 5.02.

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers.

PSB Holdings, Inc. announced the departure of John Sonnentag from the company’s board of directors effective as of September 15, 2009.  Mr. Sonnentag also resigned from the board of the company’s wholly-owned subsidiary, Peoples State Bank, effective as of the same date.  Mr. Sonnentag had served on both boards since 2002.  Mr. Sonnentag’s departure from the board was due to his retirement, and the company is not aware of any disagreement between Mr. Sonnentag and the company on any matter relating to the company’s operations, policies, or practices.

The company also announced that Mr. Tim Sonnentag will replace Mr. John Sonnentag as a member of the company’s board of directors effective at the next regularly scheduled October 20, 2009, board meeting.  Initially, Mr. Tim Sonnentag will serve only as a director of the company and will not sit on any committees of the board.

Section 9 – Financial Statements and Exhibits

Item 9.01

Financial Statements and Exhibits

Exhibit 99.1

News release dated September 21, 2009

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:  September 21, 2009

By:  PETER W. KNITT

Peter W. Knitt

President and Chief Executive Officer

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EXHIBIT INDEX

to

FORM 8-K

of

PSB HOLDINGS, INC.

dated September 21, 2009

Pursuant to Section 102(d) of Regulation S-T

(17 C.F.R. Section 232.102(d))

99.1

News release dated September 21, 2009

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EX-99.1

Exhibit 99.1

PSB Announces Change in Board of Directors

Wausau, Wisconsin [OTCBB:PSBQ.OB] – Peter W. Knitt, President and CEO of PSB Holdings, Inc. (“PSB”) and Peoples State Bank (“Peoples”) announced the retirement of Mr. John Sonnentag, 67, from the PSB Board of Directors effective September 15, 2009.  After a thorough search and consideration of potential directors, PSB has announced the appointment of Mr. Tim Sonnentag, 43, son of Mr. John Sonnentag, as a member of its Board of Directors effective at the next regularly scheduled October 20, 2009 Board meeting.  

Mr. Knitt said, “We have appreciated the business acumen and candid independent advice from John since he joined the PSB Board in 2002.  His experience as Chairman of the Board of County Materials Corporation, Marathon, Wisconsin, and as the entrepreneur behind the creation and growth of several regional companies providing concrete and raw materials to the construction and infrastructure industries, has been invaluable to our understanding of credit and growth issues involving all types of real estate lending.  Since John joined the PSB Board in 2002, PSB net book value has increased 65% from $16.03 per share to $26.47 per share as of June 30, 2009 and annual cash dividends increased 30% to $.70 per share.  We wish John well and are proud to have served our shareholders with him during the past seven years.”

Mr. Knitt further noted, “In our home market of Wausau, Wisconsin, it can be difficult to recruit local entrepreneurs with a large company perspective active in the local business community who can also devote time to protecting shareholders interests of a public company such as PSB.  Therefore, we are pleased to add Mr. Tim Sonnentag to the PSB Board of Directors.  Tim brings us substantial experience as President of County Materials Corporation. We expect Tim to bring much of the focused business management advice we received from John while providing a new perspective on growing value for PSB shareholders from providing services to large commercial customers.  Tim has demonstrated the value of his management in growing County Materials Corporation and related entities to more than 40 locations throughout the United States. We look forward to adding Tim’s perspective to strategy and growth and welcome him as a di rector for PSB and Peoples State Bank.”

About PSB Holdings, Inc.

PSB Holdings, Inc. is the parent company of Peoples State Bank.  Peoples is a $590 million community bank headquartered in Wausau, Wisconsin, operating 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.