EX-99.1 4 psbex99.htm PSB NEWS RELEASE Exhibit 99.1 (W0235395).DOC



Exhibit 99.1


PSB ANNOUNCES QUARTERLY EARNINGS OF $.31 PER SHARE


Wausau, Wisconsin [OTCBB:PSBQ] – Peter W. Knitt, President and CEO of PSB Holdings, Inc. (“PSB”) and Peoples State Bank (“Peoples”) announced December 2009 quarterly earnings of $.31 per share on net income of $489,000 compared to earnings of $.47 per share on net income of $738,000 during the most recent September 2009 quarter and $.68 per share on net income of $1,059,000 during the prior year December 2008 quarter.  The decline in December 2009 net income was due to higher provision for loan losses and loss on sale of foreclosed properties.  President Knit declared, “The slow economy has impacted all banks, including PSB, as borrowers struggle to make payments and collateral prices remain depressed.  Our comprehensive review of potential credit losses including foreclosed property has set aside conservative reserves for loan losses.  However, our core earnings continue to be strong and position us well to meet the needs of customers and expectations of shareholders during 2010.”


PSB earnings for all of 2009 declined 6.1% to $3,116,000, or $2.00 per share compared to $3,301,000, or $2.13 per share, during 2008.  Both years were impacted by credit losses related to the economic downturn.  During 2009, a $1,004,000 loss on sale of a foreclosed asset following auction reduced earnings by $.39 per share.  During 2008, net income declined $.39 per share due to a write down of PSB’s investment in Federal National Mortgage Association (“FNMA”) preferred stock of $991,000.  Earnings per share before these special items would have been $2.39 in 2009 and $2.52 in 2008.


President Knitt commented, “The difficult banking environment during 2009 provided both opportunities and challenges.  Strong core earnings allowed us to remain profitable even while providing significant increases in our allowance for loan losses to 1.71% of gross loans compared to 1.28% at the beginning of the year.  In addition to higher credit losses, we incurred a $702,000 increase in FDIC insurance premiums from industry wide assessments on the banking industry to cover depositor losses.  However, as homeowners struggled to get credit, we increased our market share by growing our serviced residential mortgage portfolio by $52 million, or 28%.  PSB has always sought to help customers finance homes they can afford and at year-end less than 1% of our home loans were in the process of foreclosure.”  


Knitt continued, “PSB has performed well during the economic downturn and tangible net book value per share increased 5.2% during the year to $27.11 at December 31, 2009.  We maintained strong average tangible stockholders’ equity at 6.94% of assets during 2009, the same as seen during 2008.  Our balance sheet is also well positioned to benefit from rising interest rates and we have continued commercial lending relationships to provide needed credit when businesses look again to expand.  Our recently declared semi-annual dividend continues a 45 year tradition of cash dividends to PSB shareholders and 24 consecutive years of increased dividends declared.”


Return on average assets was .33% and .75% during the quarter ended December 31, 2009 and 2008, respectively.  Return on average stockholders’ equity was 4.49% and 10.90% during the quarter ended December 31, 2009 and 2008, respectively.


Return on average assets was .54% and .61% during the year ended December 31, 2009 and 2008, respectively.  Return on average stockholders’ equity was 7.38% and 8.63% during the year ended December 31, 2009 and 2008, respectively.




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Balance Sheet Growth


Total assets were $606.9 million at December 31, 2009 compared to $570.5 million at December 31, 2008, increasing $36.4 million or 6.4%.  Net loans receivable increased $13.0 million to $437.6  million at December 31, 2009 compared to $424.6 million at December 31, 2008.  Loan growth has come from commercial real estate while consumer lending remained flat as some residential borrowers refinanced into long-term fixed rate secondary market mortgages.  Other asset gains since December 31, 2008 included investments securities, up $3.3 million, foreclosed assets which increased $3.3 million, and cash equivalents which increased $13.2 million.


Total deposits at December 31, 2009 were $458.7 million compared to $427.8 million at December 31, 2008, an increase of $30.9 million, or 7.2%.  Of this total, local deposits increased $18.6 million while brokered deposits increased $12.3 million.  Other wholesale funding sources including FHLB advances and repurchase agreements were $86.6 million, a decrease of $4.1 million, or 4.5% compared to the prior year.  All wholesale funding, including brokered deposits, FHLB advances, and other borrowings was $163.8 million and $155.5 million at December 31, 2009 and December 31, 2008, respectively.  Wholesale funding to total assets was 27.0% and 27.3% at December 31, 2009 and December 31, 2008, respectively.  


Asset Quality and Allowances for Loan Loss


PSB’s provision for loan losses was $1,600,000 in the December 2009 quarter compared to $800,000 in the most recent September 2009 quarter and $330,000 in the prior year December 2008 quarter.  Total provision for loan losses during the year ended December 31 was $3,700,000 and $885,000 during 2009 and 2008, respectively, an increase of $2,815,000.  The provision for loan losses increased dramatically during 2009 from an increase in net loan charge offs of $1,396,000 compared to 2008 along with an increase in nonperforming loans as well as internal assessments of currently performing loans with factors that increase the risk for future delinquency.


Net loan charge-offs were .37% during 2009 compared to .05% during 2008.  Linked quarter annualized net charge offs have increased each quarter since the quarter ended December 2008 and were .72% of loans during the December 2009 quarter.  Approximately 46% of the 2009 net charge offs were incurred in the December 2009 quarter from foreclosure of real estate development collateral in a participation loan originally purchased from a correspondent bank.  At December 31, 2009, the allowance for loan losses was $7,611,000 or 1.71% of total loans compared to $5,521,000, or 1.28% of total loans at December 31, 2008.


During the December 2009 quarter, $3.3 million of foreclosed properties originally related to a $5.8 million land development loan were sold at auction at a loss of $452,000 excluding a previously expensed $125,000 auction marketing fee.  The remaining $2.5 million foreclosed asset was further written down $427,000 to its estimated fair value of $2.1 million at December 31, 2009.  All other foreclosure holding costs and net sales losses were $126,000 during 2009 compared to $6,000 during 2008.  At December 31, 2009, PSB held $3,776,000 in remaining foreclosed assets compared to $521,000 held at December 31, 2008.  




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Nonperforming loans increased $1,960,000, or 17.3%, to $13.3 million at December 31, 2009 compared to the prior year.  Nonperforming loans as a percentage of gross loans increased to 2.99% at December 31, 2009 compared to 2.64% at December 31, 2008.  At December 31, 2009, the following five largest nonperforming loans represented approximately 48% of total nonaccrual loans:


Collateral Description

Principal

Loss Reserve

 

 

 

Nonowner occupied commercial real estate - multi use

$ 3,446,000

 

$    400,000

 

Owner occupied commercial real estate and business assets

1,053,000

 

150,000

 

Trade accounts receivable and business assets

961,000

 

700,000

 

Owner occupied commercial real estate and business assets

730,000

 

100,000

 

Equipment and business assets

223,000

 

223,000

 

 

 

 

 

 

Totals

$ 6,413,000

 

$ 1,573,000

 


Including the loans in the previous table, at December 31, 2009, PSB’s internal credit grading system identified 22 separate loan relationships totaling $10.8 million against which $2.5 million in specific loan loss reserves were recorded.  At December 31, 2008, PSB’s internal credit grading system identified 15 separate loan relationships totaling $7.3 million against which $810,000 in loan loss reserves were recorded.  


Although PSB believes commercial loan portfolio credit quality will stabilize as the local economy improves later in 2010, nonaccrual loans will likely continue to increase during the first half of the year.  During past economic recoveries, the Midwest section of the United States has lagged business expansion first seen on the east and west coasts.  This possible delay in economic recovery in Wisconsin impacts the timing of when locally owned small to mid market businesses which make up the PSB customer base can gain credit strength.  In addition, a continued slow local economy impacts the value of collateral and foreclosed assets, potentially increasing losses on foreclosed borrowers and properties during 2010.


Restructured and nonaccrual loans remain classified as nonperforming loans until the uncertainty surrounding the credit is eliminated.  Therefore, some borrowers continue to make loan payments while maintained on non-accrual status.  PSB applies all payments received on nonaccrual loans to principal until the loan is returned to accrual status.  Nonperforming assets are shown in the following table.


Non-Performing Assets as of

December 31,

(dollars in thousands)

2009

2008

 

 

 

Nonaccrual loans

$ 13,298

 

$ 10,590

 

Accruing loans past due 90 days or more

–   

 

–   

 

Restructured loans not on nonaccrual

–   

 

748

 

 

 

 

 

 

Total nonperforming loans

13,298

 

11,338

 

Foreclosed assets

3,776

 

521

 

 

 

 

 

 

Total nonperforming assets

$ 17,074

 

$ 11,859

 

 

 

 

 

 

Nonperforming loans as a % of gross loans

2.99%

 

2.64%

 

Total nonperforming assets as a % of total assets

2.81%

 

2.08%

 




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Capital and Liquidity


During 2009, stockholders’ equity increased $2.4 million, or 5.9%, from retained net income of $2.0 million (net of $1.1 million of dividends paid) and an increase in unrealized gain on securities available for sale of $326,000 after taxes.  Net book value per share at December 31, 2009 was $27.11, an increase of 5.2% over net book value of $25.76 at December 31, 2008.  During both 2009 and 2008, average tangible stockholders’ equity was 6.94% of average assets.  


During 2009, PSB issued $7 million of 8% Senior Subordinated Notes and contributed the net proceeds to its subsidiary, Peoples State Bank.  While the Notes are reflected as debt on the Consolidated Balance Sheets, the debt is reclassified as Tier 2 equity capital (but not tangible equity) for banking regulatory purposes.  PSB was considered “well capitalized” under banking regulations at December 31, 2009 and 2008.


PSB regularly maintains access to wholesale markets to fund loan originations and manage local depositor needs.  At December 31, 2009, unused (but available) wholesale funding was approximately $210 million, or 35% of total assets, compared to $118 million, or 21% of total assets at December 31, 2008.  The increase in wholesale funding availability during 2009 was primarily due to PSB’s acceptance by the Federal Reserve to participate in their “Borrower in Custody” program in which performing commercial and commercial real estate loans are pledged against potential short-term Discount Window advances.  Since the pledged commercial related loans were unencumbered and not generally accepted as collateral for other borrowing lines, the $100 million of additional borrowing capacity provided by the Discount Window program significantly increased the amount of wholesale funds unused and available.


Net Interest Margin


Tax adjusted net interest income totaled $4,780,000 during the December 2009 quarter compared to $4,337,000 in the September 2009 quarter and $4,005,000 in the December 2008 quarter  Year to date tax adjusted net interest income was $17,808,000 during 2009 compared to $15,253,000 during 2008, an increase of 16.8%.  Approximately $1.2 million of the increase was from growth in earning assets over the prior year and approximately $1.4 million was from an increase in net interest margin from 2.98% during 2008 to 3.25% during 2009.  


Net margin increased from 3.09% in the September 2009 quarter to 3.43% in the December 2009 quarter.  During the quarter, loan yields increased 19 basis points as adjustable rate loans continued to be re-written with interest rate floors, increasing spreads to the prime rate and short-term LIBOR rates.  At the same time, interest-bearing liability costs continued to trend lower by 18 basis points during the quarter as national deposit rates remain low.  Yield on investment securities continued to decline during the December 2009 quarter as reinvestment rates remain low and securities yields are expected to continue to decline during the upcoming quarter.  


During the March 2010 quarter, we anticipate that higher cost short-term seasonable governmental deposits will increase funding costs while earning asset yields are expected to decline slightly from lower investment security yields.  Recent strategies to prepare the balance sheet for rising interest rates will also impact funding costs during 2010.  All factors considered, 2010 net interest margin is expected to remain near levels seen during all of 2009 but decline from that seen during the December 2009 quarter.




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Noninterest and Fee Income


Total noninterest income for the quarter ended December 31, 2009 was $1,563,000 compared to $1,090,000 earned during the December 2008 quarter.  During the December 2009 quarter, PSB recorded a $521,000 gain on sale of investment securities.  Excluding this gain, December 2009 noninterest income would have been $1,042,000 compared to $1,090,000 during December 2008.  


During the year ended December 31, 2009, total noninterest income was $5,576,000 compared to $3,184,000 during 2008, an increase of $2,392,000.  The most significant components of the change include the December 2009 quarter security gain as well as increased 2009 mortgage banking income and a loss on FNMA stock during 2008.


United States Treasury programs and open market mortgage related asset purchases by the Federal Reserve during 2009 dramatically lowered long-term residential mortgage rates, contributing to a wave of mortgage refinancing during 2009.  PSB mortgage banking income was $1,850,000 during 2009 compared to $1,040,000, an increase of $810,000.  By December 2009, the refinance activity had significantly diminished and mortgage banking levels have returned to normal levels.  As long-term mortgage rates increase during the economic recovery, mortgage loan origination volume is expected to decline.  During 2009, PSB mortgage loan portfolio serviced for others increased 28% reaching $237.8 million at December 31, 2009.


During September 2008, PSB recorded a $991,000 charge to recognize permanent impairment in value of its investment in FNMA preferred stock.  If income from sale of securities and mortgage banking income were excluded, total noninterest income during 2009 and 2008 would have been $3,205,000 and $3,135,000, respectively.


Operating Expenses


Noninterest expenses totaled $4,070,000 during the December 2009 quarter compared to $3,135,000 during the prior year, an increase of $935,000.  The 2009 increase was due to significantly greater loss on foreclosed assets of $955,000.  During the year ended December 31, 2009, total operating expenses were $14.8 million compared to $12.6 million 2008, an increase of $2.2 million, or 18.0%.  The primary components of the increase were losses on foreclosed assets, increased FDIC insurance premiums, and higher salaries and benefits expenses.


During 2009, loss on foreclosed assets increased $1,124,000 to $1,130,000 from a $1,004,000 loss on a large land development foreclosure and $126,000 in foreclosure costs related to all other properties.  


During 2009, the FDIC increased regular quarterly insurance premiums and charged a onetime special assessment to recapitalize the FDIC insurance fund in light of ongoing and expected bank failures.  During 2009, PSB’s FDIC insurance expense was $986,000 compared to $284,000 during 2008, an increase of $702,000.  During December 2009, PSB prepaid $2.6 million to the FDIC representing estimated insurance premiums during 2010 through 2012 as required by the FDIC.  This prepayment will be amortized as FDIC insurance expense during the next three years.  Due to deposit growth and potential increases in the FDIC assessment rate, FDIC insurance expense could be greater in future years than seen during 2009.


Salaries and employee benefits expense increased $608,000, or 8.9% during 2009 primarily from base wage increases and a slightly larger employee base (together representing $380,000 of increased expense).  Incentive and profit sharing payments related to loan fees, deposit growth, mortgage banking, and return on equity performance to banking peer group increased $175,000, or 56% during 2009



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compared to 2008.  An increase in health insurance expense of $54,000, or 7.2%, during 2009 compared to 2008 made up the remainder of increased salaries and benefits expense.  


About PSB Holdings, Inc.


PSB Holdings, Inc. is the parent company of Peoples State Bank.  Peoples is 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.


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 referred to under “Forward - Looking Statements” in Item 1 of PSB’s Form 10-K for the year ended December 31, 2008.  PSB assumes no obligation to update or supplement forward-looking statements that become untrue because of events subsequent to the release of this filing.





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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:

2009

2009

2009

2009

2008

 

 

 

 

 

 

 

 

Net income

$           489

 

$           738

 

$           883

 

$        1,006

 

$        1,059

 

Basic earnings per share(3)

$          0.31

 

$          0.47

 

$          0.57

 

$          0.65

 

$          0.68

 

Diluted earnings per share(3)

$          0.31

 

$          0.47

 

$          0.57

 

$          0.65

 

$          0.68

 

Dividends declared per share(3)

$          0.35

 

$            –   

 

$          0.35

 

$            –   

 

$          0.34

 

Net book value per share

$        27.11

 

$        27.60

 

$        26.47

 

$        26.53

 

$        25.76

 

Semi-annual dividend payout ratio

44.47%

 

n/a

 

28.90%

 

n/a

 

41.12%

 

Average common shares outstanding

1,559,314

 

1,559,314

 

1,559,314

 

1,559,198

 

1,548,898

 

 

 

 

 

 

 

 

 

 

Balance sheet – average balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, net of allowances

$    433,212

 

$    432,237

 

$    429,104

 

$    421,029

 

$    415,468

 

Total assets

$    589,356

 

$    588,180

 

$    575,743

 

$    569,372

 

$    559,932

 

Deposits

$    440,508

 

$    441,741

 

$    429,849

 

$    427,490

 

$    420,856

 

Stockholders’ equity

$      43,233

 

$      42,184

 

$      42,118

 

$      41,072

 

$      38,668

 

 

 

 

 

 

 

 

 

 

Performance ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets(1)

0.33%

 

0.50%

 

0.62%

 

0.72%

 

0.75%

 

Return on average stockholders’ equity(1)

4.49%

 

6.94%

 

8.41%

 

9.93%

 

10.90%

 

Average tangible stockholders’ equity

 

 

 

 

 

 

 

 

 

 

to average assets(4)

7.01%

 

6.89%

 

6.97%

 

6.88%

 

6.87%

 

Net loan charge-offs to average loans(1)

0.72%

 

0.45%

 

0.16%

 

0.15%

 

0.10%

 

Nonperforming loans to gross loans

2.99%

 

2.21%

 

3.11%

 

2.82%

 

2.64%

 

Allowance for loan loss to gross loans

1.71%

 

1.54%

 

1.47%

 

1.41%

 

1.28%

 

Nonperforming assets to tangible equity

 

 

 

 

 

 

 

 

 

 

plus the allowance for loan losses(4)

35.49%

 

34.91%

 

31.80%

 

27.86%

 

26.97%

 

Net interest rate margin(1)(2)

3.43%

 

3.09%

 

3.23%

 

3.26%

 

3.02%

 

Net interest rate spread(1)(2)

3.12%

 

2.76%

 

2.90%

 

2.94%

 

2.64%

 

Service fee revenue as a percent of

 

 

 

 

 

 

 

 

 

 

average demand deposits(1)

2.51%

 

2.76%

 

2.64%

 

2.68%

 

3.01%

 

Noninterest income as a percent

 

 

 

 

 

 

 

 

 

 

of gross revenue

17.30%

 

14.18%

 

16.45%

 

15.80%

 

12.78%

 

Efficiency ratio(2)

64.17%

 

64.13%

 

65.62%

 

59.66%

 

61.53%

 

Noninterest expenses to average assets(1)

2.74%

 

2.40%

 

2.66%

 

2.42%

 

2.23%

 

 

 

 

 

 

 

 

 

 

Stock price information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High

$        19.00

 

$        23.00

 

$        23.75

 

$        18.75

 

$        20.75

 

Low

$        15.05

 

$        18.00

 

$        17.00

 

$        14.40

 

$        14.40

 

Market value at quarter-end

$        15.05

 

$        19.50

 

$        23.50

 

$        18.75

 

$        14.40


(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).




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PSB Holdings, Inc.

 

 

 

 

 

Consolidated Statements of Income

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

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

2009

2008

 

2009

2008

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

Loans, including fees

$ 6,392 

 

$ 6,257

 

 

$24,903 

 

$25,107 

 

Securities:

 

 

 

 

 

 

 

 

 

Taxable

719 

 

814

 

 

3,117 

 

3,325 

 

Tax-exempt

355 

 

345

 

 

1,375 

 

1,366 

 

Other interest and dividends

7 

 

21

 

 

12 

 

109 

 

 

 

 

 

 

 

 

 

 

 

Total interest and dividend income

7,473 

 

7,437

 

 

29,407 

 

29,907 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

1,943 

 

2,685

 

 

8,701 

 

11,602 

 

FHLB advances

497 

 

648

 

 

2,227 

 

2,541 

 

Other borrowings

220 

 

202

 

 

733 

 

903 

 

Senior subordinated notes

142 

 

–   

 

 

341 

 

–    

 

Junior subordinated debentures

114 

 

114

 

 

454 

 

454 

 

 

 

 

 

 

 

 

 

 

 

Total interest expense

2,916 

 

3,649

 

 

12,456 

 

15,500 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

4,557 

 

3,788

 

 

16,951 

 

14,407 

 

Provision for loan losses

1,600 

 

330

 

 

3,700 

 

885 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

2,957 

 

3,458

 

 

13,251 

 

13,522 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

Service fees

372 

 

406

 

 

1,448 

 

1,581 

 

Mortgage banking

225 

 

199

 

 

1,850 

 

1,040 

 

Gain on sale of loan

–    

 

–   

 

 

122 

 

–    

 

Investment and insurance sales commissions

104 

 

157

 

 

464 

 

460 

 

Gain (loss) on sale of securities

521 

 

–   

 

 

521 

 

(991)

 

Loss on disposal of premises and equipment

–    

 

–   

 

 

(98)

 

(14)

 

Increase in cash surrender value of life insurance

105 

 

92

 

 

411 

 

369 

 

Other noninterest income

236 

 

236

 

 

858 

 

739 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income

1,563 

 

1,090

 

 

5,576 

 

3,184 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

1,727 

 

1,651

 

 

7,452 

 

6,844 

 

Occupancy and facilities

422 

 

464

 

 

1,822 

 

1,943 

 

Loss on foreclosed assets

956 

 

1

 

 

1,130 

 

6 

 

Data processing and other office operations

234 

 

245

 

 

957 

 

962 

 

Advertising and promotion

89 

 

85

 

 

355 

 

336 

 

FDIC insurance premiums

185 

 

94

 

 

986 

 

284 

 

Other noninterest expenses

457 

 

595

 

 

2,127 

 

2,191 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

4,070 

 

3,135

 

 

14,829 

 

12,566 

 

 

 

 

 

 

 

 

 

 

 

Income before provision (credit) for income taxes

450 

 

1,413

 

 

3,998 

 

4,140 

 

Provision (credit) for income taxes

(39)

 

354

 

 

882 

 

839 

 

 

 

 

 

 

 

 

 

 

 

Net income

$   489 

 

$ 1,059

 

 

$ 3,116 

 

$ 3,301 

 

Basic earnings per share

$  0.31 

 

$  0.68

 

 

$  2.00 

 

$  2.13 

 

Diluted earnings per share

$  0.31 

 

$  0.68

 

 

$  2.00 

 

$  2.13 

 



-8-





PSB Holdings, Inc.

 

 

Consolidated Balance Sheets

 

 

December 31, 2009 unaudited, December 31, 2008 derived from audited financial statements

 

 

 

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

2009

2008

Assets

 

 

 

 

 

Cash and due from banks

$ 15,010 

 

$ 12,307 

 

Interest-bearing deposits and money market funds

731 

 

865 

 

Federal Funds sold

10,596 

 

–    

 

 

 

 

 

 

Cash and cash equivalents

26,337 

 

13,172 

 

 

 

 

 

 

Securities available for sale (at fair value)

106,185 

 

102,930 

 

Loans held for sale

–    

 

245 

 

Loans receivable, net of allowance for loan losses

437,633 

 

424,635 

 

Accrued interest receivable

2,142 

 

2,195 

 

Foreclosed assets

3,776 

 

521 

 

Premises and equipment, net

10,283 

 

10,929 

 

Mortgage servicing rights, net

1,147 

 

785 

 

Federal Home Loan Bank stock (at cost)

3,250 

 

3,250 

 

Cash surrender value of bank-owned life insurance

10,489 

 

9,969 

 

Other assets

5,612 

 

1,855 

 

 

 

 

 

 

TOTAL ASSETS

$606,854 

 

$570,486 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

$ 60,003 

 

$ 54,233 

 

Interest-bearing deposits

398,728 

 

373,568 

 

 

 

 

 

 

Total deposits

458,731 

 

427,801 

 

 

 

 

 

 

Federal Home Loan Bank advances

58,159 

 

65,000 

 

Other borrowings

28,410 

 

25,631 

 

Senior subordinated notes

7,000 

 

–    

 

Junior subordinated debentures

7,732 

 

7,732 

 

Accrued expenses and other liabilities

4,552 

 

4,423 

 

 

 

 

 

 

   Total liabilities

564,584 

 

530,587 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

Preferred stock – no par value:  Authorized – 30,000 shares

–    

 

–    

 

Common stock – no par value with a stated value of $1 per share:

 

 

 

 

Authorized – 3,000,000 shares

 

 

 

 

Issued – 1,751,431 shares; Outstanding – 1,559,314 shares

1,751 

 

 

 

Issued – 1,751,431 shares; Outstanding – 1,548,898 shares

 

 

1,751 

 

Additional paid-in capital

5,599 

 

5,856 

 

Retained earnings

38,348 

 

36,328 

 

Accumulated other comprehensive income

1,776 

 

1,450 

 

Treasury stock, at cost – 192,117 and 202,533 shares, respectively

(5,204)

 

(5,486)

 

 

 

 

 

 

Total stockholders’ equity

42,270 

 

39,899 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$606,854 

 

$570,486 

 



-9-





PSB Holdings, Inc.

 

 

 

 

 

 

 

Average Balances and Interest Rates

 

 

 

 

 

 

Quarter Ended December 31,

 

 

 

 

 

 

 

 

 

2009

 

 

 

2008

 

 

Avg Bal

Interest

Yield/Rate

 

Avg Bal

Interest

Yield/Rate

Assets

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

Loans(1)(2)

$440,199 

 

$6,432

 

5.80%

 

$420,808 

 

$6,290

 

5.95%

Taxable securities

65,423 

 

719

 

4.36%

 

64,196 

 

820

 

5.08%

Tax-exempt securities(2)

37,453 

 

538

 

5.70%

 

35,643 

 

523

 

5.84%

FHLB stock

3,250 

 

–   

 

0.00%

 

3,250 

 

–   

 

0.00%

Other

7,176 

 

7

 

0.39%

 

3,012 

 

21

 

2.77%

 

 

 

 

 

 

 

 

 

 

 

 

Total(2)

553,501 

 

7,696

 

5.52%

 

526,909 

 

7,654

 

5.78%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

10,161 

 

 

 

 

 

11,160 

 

 

 

 

Premises and equipment, net

10,216 

 

 

 

 

 

11,051 

 

 

 

 

Cash surrender value ins.

10,429 

 

 

 

 

 

9,917 

 

 

 

 

Other assets

12,036 

 

 

 

 

 

6,235 

 

 

 

 

Allowance for loan losses

(6,987)

 

 

 

 

 

(5,340)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$589,356 

 

 

 

 

 

$559,932 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities & stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Savings and demand deposits

$110,556 

 

$  322

 

1.16%

 

$ 90,394 

 

$  411

 

1.81%

Money market deposits

83,546 

 

263

 

1.25%

 

71,118 

 

307

 

1.72%

Time deposits

187,600 

 

1,358

 

2.87%

 

205,685 

 

1,967

 

3.80%

FHLB borrowings

58,134 

 

497

 

3.39%

 

63,957 

 

648

 

4.03%

Other borrowings

28,142 

 

220

 

3.10%

 

24,028 

 

202

 

3.34%

Senior subordinated notes

7,000 

 

142

 

8.05%

 

–    

 

–   

 

0.00%

Junior subordinated debentures

7,732 

 

114

 

5.85%

 

7,732 

 

114

 

5.87%

 

 

 

 

 

 

 

 

 

 

 

 

Total

482,710 

 

2,916

 

2.40%

 

462,914 

 

3,649

 

3.14%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

58,806 

 

 

 

 

 

53,659 

 

 

 

 

Other liabilities

4,607 

 

 

 

 

 

4,691 

 

 

 

 

Stockholders’ equity

43,233 

 

 

 

 

 

38,668 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$589,356 

 

 

 

 

 

$559,932 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$4,780

 

 

 

 

$4,005

 

 

Rate spread

 

 

3.12%

 

 

 

2.64%

Net yield on interest-earning assets

 

 

3.43%

 

 

 

3.02%


(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%.



-10-






PSB Holdings, Inc.

 

 

 

 

 

 

 

Average Balances and Interest Rates

 

 

 

 

 

 

Year ended December 31,

 

 

 

 

 

 

 

 

 

2009

 

 

 

2008

 

 

Avg Bal

Interest

Yield/Rate

 

Avg Bal

Interest

Yield/Rate

Assets

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

Loans(1)(2)

$435,264 

 

$25,052

 

5.76%

 

$405,428 

 

$25,233

 

6.22%

Taxable securities

66,211 

 

3,117

 

4.71%

 

64,309 

 

3,341

 

5.20%

Tax-exempt securities(2)

36,995 

 

2,083

 

5.63%

 

35,509 

 

2,070

 

5.83%

FHLB stock

3,250 

 

–   

 

0.00%

 

3,182 

 

–   

 

0.00%

Other

5,754 

 

12

 

0.21%

 

3,925 

 

109

 

2.78%

 

 

 

 

 

 

 

 

 

 

 

 

Total(2)

547,474 

 

30,264

 

5.53%

 

512,353 

 

30,753

 

6.00%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

11,239 

 

 

 

 

 

10,344 

 

 

 

 

Premises and equipment, net

10,486 

 

 

 

 

 

11,105 

 

 

 

 

Cash surrender value ins.

10,204 

 

 

 

 

 

9,368 

 

 

 

 

Other assets

7,668 

 

 

 

 

 

5,913 

 

 

 

 

Allowance for loan losses

(6,325)

 

 

 

 

 

(5,088)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$580,746 

 

 

 

 

 

$543,995 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities & stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Savings and demand deposits

$105,325 

 

$  1,406

 

1.33%

 

$  89,191 

 

$  1,856

 

2.08%

Money market deposits

75,039 

 

987

 

1.32%

 

71,382 

 

1,576

 

2.21%

Time deposits

199,864 

 

6,308

 

3.16%

 

194,958 

 

8,170

 

4.19%

FHLB borrowings

60,852 

 

2,227

 

3.66%

 

62,396 

 

2,541

 

4.07%

Other borrowings

26,131 

 

733

 

2.81%

 

25,023 

 

903

 

3.61%

Senior subordinated notes

4,213 

 

341

 

8.09%

 

–    

 

–   

 

0.00%

Junior subordinated debentures

7,732 

 

454

 

5.87%

 

7,732 

 

454

 

5.87%

 

 

 

 

 

 

 

 

 

 

 

 

Total

479,156 

 

12,456

 

2.60%

 

450,682 

 

15,500

 

3.44%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

54,738 

 

 

 

 

 

50,633 

 

 

 

 

Other liabilities

4,652 

 

 

 

 

 

4,440 

 

 

 

 

Stockholders’ equity

42,200 

 

 

 

 

 

38,240 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$580,746 

 

 

 

 

 

$543,995 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$17,808

 

 

 

$15,253

 

 

Rate spread

 

 

2.93%

 

 

 

2.56%

Net yield on interest-earning assets

 

 

3.25%

 

 

 

2.98%


(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%.




-11-