EX-99.1 3 psbex99.htm PSB NEWS RELEASE Exhibit 99.1 (W0256223).DOC



Exhibit 99.1


PSB Announces Quarterly Earnings of $.77 Per Share


Wausau, Wisconsin [OTCBB:PSBQ] – Peter W. Knitt, President and CEO of PSB Holdings, Inc. (“PSB”) and Peoples State Bank (“Peoples”) reported June 2010 quarterly earnings of $.77 per share on net income of $1,208,000 compared to earnings of $.56 per share on net income of $881,000 during the most recent March 2010 quarter and $.57 per share on net income of $883,000 during the prior year June 2009 quarter.  


President Knitt announced, “Our June 2010 quarterly earnings per share were the highest seen since the December 2007 quarter which included a onetime gain of $.13 per share from a victory in Tax Court.  Excluding that December 2007 nonrecurring gain, June 2010 earnings of $.77 per share were record quarterly earnings for the Company.  However, due to ongoing volatility in both local and national economic conditions we cannot predict whether such elevated earnings can be sustained in the near term, although we are encouraged by the strength of our core operations compared to other peer banks.  Our strength is also reflected in the recently declared semi-annual dividend which continues a 46 year tradition of cash dividends to PSB shareholders and 25 consecutive years of increased dividends declared.”


During the six months ended June 30, 2010, earnings increased 10% to $1.33 per share on net income of $2,089,000 compared to earnings of $1.21 per share on net income of $1,889,000 during 2009.  Increased earnings year to date were due to higher net interest income, increased deposit service fees, and lower provision for loan losses which outpaced increased wage and benefit expense and a decline in mortgage banking income.  President Knitt further noted, “We continue to be cautiously optimistic on our credit risk profile and were able to work through some problem assets during the most recent quarter.  Total nonperforming assets declined slightly and were sustained at their lowest level since June 30, 2009.”


Total assets were $600.2 million at June 30, 2010 compared to $606.9 million at December 31, 2009, but increased from $581.8 million at June 30, 2009.  President Knitt commented, “Although total assets have remained near the $600 million milestone, total loans have increased $3.6 million since December 31, 2009 despite working through approximately $3.4 million of loans transferred to foreclosed assets or charged off during this period which offset net loan growth.  We continue to seek out and serve as a source of credit for business and real estate growth in our local markets.”


Return on average assets was .81% and .62% during the quarter ended June 30, 2010 and 2009, respectively.  Return on average stockholders’ equity was 11.08% and 8.41% during the quarter ended June 30, 2010 and 2009, respectively.


Return on average assets was .70% and .67% during the six months ended June 30, 2010 and 2009, respectively.  Return on average stockholders’ equity was 9.75% and 9.16% during the six months ended June 30, 2010 and 2009, respectively.




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Balance Sheet Growth


Total assets were $600.2 million at June 30, 2010 compared to $601.1 million at March 31, 2010 and $581.8 million at June 30, 2009.  During the recent June 2010 quarter, commercial related loans increased $5.2 million and residential mortgage lending increased $1.2 million which was funded by a $9.0 million decline in cash and cash equivalents held.


During the June 2010 quarter, core deposits increased $4.2 million, but year to date continue to be $15.6 million less than the $329.8 million held at December 31, 2009.  June 2010 quarterly growth in core deposits was offset by a $5.3 million decline in retail certificates of deposit greater than $100,000 as local municipalities used maturing short-term certificates to fund operational needs.  During the June 2010 quarter, wholesale funding including brokered deposits, FHLB advances, and other borrowings declined $1.4 million to $164.6 million, or 27.4% of total assets, down from 27.6% of total assets at March 31, 2010.


Asset Quality and Allowances for Loan Loss


PSB’s provision for loan losses was $585,000 in the June 2010 quarter compared to $460,000 in the most recent March 2010 quarter and $600,000 in the prior year June 2009 quarter.  During the six months ended June 30, provision for loan losses was $1,045,000 in 2010 compared to $1,300,000 in 2009.  The provision for loan losses decreased during 2010 compared to the 2009 periods due to a stabilization of the average internal credit quality grades assigned to loans and identification of fewer new credits requiring large specific reserves.


Restructured and nonaccrual loans remain classified as nonperforming loans until the uncertainty surrounding the credit is eliminated.  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 or repaid.  


Nonperforming loans decreased $1.6 million during the quarter to total $9.6 million at June 30, 2010 from repayment of a $1.0 million loan and final foreclosure of a $2.1 million loan (discussed further below) offset by an increase of $1.5 million in new nonaccrual loans.  Foreclosed assets increased $1.2 million to $6.2 million at June 30, 2010 compared to $5.0 million at March 31, 2010 primarily from addition of a $1.7 million foreclosed loan net of $448,000 in charged off principal previously reserved.  Total nonperforming assets declined $341,000, or 2.1% to $15.8 million at June 30, 2010 from $16.2 million at March 31, 2010 primarily from repayment of the $1.0 million nonaccrual loan noted above.


Loss on foreclosed assets was $38,000 during the June 2010 quarter compared to $111,000 during the March 2010 quarter and $8,000 during June 2009 quarter.  The June 2010 quarterly loss on foreclosed assets included a net loss of $23,000 on sale of foreclosed properties with net book value of $488,000 during the quarter.  There were no significant sales of foreclosed properties during the March 2010 quarter but foreclosure losses were higher than the June 2010 quarter from payment of annual real tax and other holding expenses on foreclosed properties held.




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PSB believes the decline in general credit quality and the economy in its local markets has stabilized although the timing and extent of future losses is uncertain.  Foreclosed property is expected to continue to increase during 2010 as PSB works through ongoing collection and foreclosure actions.  A continued slow local economy impacts the value of collateral and foreclosed assets, potentially increasing losses on foreclosed borrowers and properties during 2010.


Nonperforming assets are shown in the following table.


Non-Performing Assets as of

June 30,

 

December 31,

(dollars in thousands)

2010   

2009   

 

2009

 

 

 

 

 

Nonaccrual loans

$   9,614

$  12,959

 

$  13,298

 

Accruing loans past due 90 days or more

–   

–   

 

–   

 

Restructured loans not on nonaccrual

–   

736

 

–   

 

 

 

 

 

 

 

Total nonperforming loans

9,614

13,695

 

13,298

 

Foreclosed assets

6,223

1,028

 

3,776

 

 

 

 

 

 

 

Total nonperforming assets

$  15,837

$  14,723

 

$  17,074

 

 

 

 

 

 

 

Nonperforming loans as a % of gross loans

2.14%

3.11%

 

2.99%

 

Total nonperforming assets as a % of total assets

2.64%

2.53%

 

2.81%

 


Total nonperforming assets as a percentage of total assets was 2.64% at June 30, 2010 compared to 2.69% at March 31, 2010 and 2.53% at June 30, 2009.  Total nonperforming assets as a percentage of total tangible common equity including the allowance for loan losses was 31.86%, 32.99%, and 31.80% at June 30, 2010, March 31, 2010, and June 30, 2009, respectively.  At June 30, 2010, all nonperforming assets aggregating $500,000 or more measured by gross principal outstanding (before specific loan reserves) represented 42% of all nonperforming assets as summarized in the following table.


Significant Nonperforming Assets at June 30, 2010

 

 

 

 

Gross

Specific

Collateral Description

Asset Type

Principal

Reserves

 

 

 

 

Vacation home/recreational properties (four)

Foreclosed

2,050

 

n/a

 

Nonowner occupied multi use, multi-tenant retail RE

Foreclosed

1,700

 

n/a

 

Building supply inventory and accounts receivable

Nonaccrual

831

 

700

 

Out of area condo land development - participation

Foreclosed

792

 

n/a

 

Owner occupied restaurant and business assets

Nonaccrual

740

 

100

 

Nonowner occupied retail/office building rentals

Nonaccrual

605

 

–   

 

 

 

 

 

 

 

Total listed assets

 

$    6,718

 

$  800

 

Total bank wide nonperforming assets

 

$  15,837

 

 

Listed assets as a % of total nonperforming assets

 

42%

 

 



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Annualized net loan charge-offs were .51% during the June 2010 quarter compared to .38% during the March 2010 quarter and .16% during the June 2009 quarter.  At June 30, 2010, the allowance for loan losses was $7,665,000 or 1.71% of total loans compared to $7,649,000, or 1.73% of total loans at March 31, 2010, and $6,496,000, or 1.47% of total loans at June 30, 2009.


At June 30, 2010, PSB’s internal credit grading system identified 18 separate loan relationships totaling $3.7 million against which $2.0 million in specific loan loss reserves were allocated.  At March 31, 2010, PSB’s internal credit grading system identified 17 separate loan relationships totaling $5.6 million against which $2.0 million in specific loan loss reserves were allocated.  During the June 2010 quarter, the total amount of loan principal with specific reserve allocations declined approximately $2.1 million from foreclosure of a loan discussed previously which was carried as foreclosed property of $1.7 million at June 30, 2010.


Capital and Liquidity


During the six months ended June 30, 2010, stockholders’ equity increased approximately $1.8 million from retained net income of $1.5 million, net of dividends of $565,000 declared, and an increase in net unrealized gains on securities available for sale of $231,000 after income tax effects.  Net book value per share at June 30, 2010 was $28.16 compared to $27.11 at December 31, 2009, and $26.47 at June 30, 2009, an increase of 6.4% during the past twelve months.  Average tangible stockholders’ equity was 6.90% of average assets during the six months ended June 30, 2010 compared to 6.92% during the same period ending June 30, 2009.  


For regulatory purposes, the $7 million senior subordinated notes and $7.7 million junior subordinated debentures reflected as debt on the Consolidated Balance Sheet are reclassified as Tier 2 and Tier 1 regulatory equity capital, respectively.  The $7 million of senior subordinated notes were issued during 2009 to support commercial related loan growth.  PSB was considered “well capitalized” under banking regulations at June 30, 2010.  


PSB regularly maintains access to wholesale markets to fund loan originations and manage local depositor needs.  At June 30, 2010, unused (but available) wholesale funding was approximately $180 million, or 30% of total assets, compared to $188 million, or 31% of total assets at December 31, 2009.  Certain municipal securities held in PSB’s investment portfolio may also be available for pledging as collateral against repurchase agreements and FHLB advances under conditions dictated by the lender.  However, due to the difficulty and uncertainty of the amount ultimately available as collateral, unpledged municipal securities are not considered available for funding in PSB’s internal analysis of liquidity flexibility or in the figures reported as unused but available wholesale funding above.  


PSB’s ability to borrow funds on a short-term basis from the Federal Reserve Discount Window is an important part of its liquidity analysis.  Although PSB has no Discount Window amounts outstanding, approximately 44% of unused but available liquidity at June 30, 2010 was represented by available Discount Window advances compared to 40% of available liquidity at December 31, 2009.




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Net Interest Margin


Tax adjusted net interest income totaled $4,999,000 during the June 2010 quarter compared to $4,375,000 in the June 2009 quarter, an increase of 14.3%.  During the June 2010 quarter, a $1.0 million nonaccrual loan was repaid when the borrower refinanced with another lender.  During the nonaccrual period, the borrower continued to make periodic payments which were fully applied against principal in accordance with PSB policy for nonaccrual loans.  Upon repayment in full, PSB recovered those past payments as interest income, which increased net interest income by approximately $108,000 during the June 2010 quarter.  Separate from this problem loan repayment, approximately 34% of the increased net interest income ($173,000) was from increased earning asset volume and 66% ($343,000) was from increased net interest margin (rate).  


Loan yield during the June 2010 quarter was 5.80% compared to 5.63% during March 2010 and 5.73% during June 2009.  Even if the $108,000 interest payment recorded from repayment of the $1.0 million nonaccrual loan noted above was disregarded, June 2010 quarterly loan yield would have been 5.70%, an increase in yield over the prior March 2010 quarter.  Funding costs continued to decline, falling to 2.17% during the June 2010 quarter compared to 2.28% in March 2010 and 2.66% in June 2009.  Year to date net interest margin was 3.42% during the six months ended June 30, 2010 compared to 3.25% during the same period in 2009 as loan yields have declined less than related funding costs.  During the upcoming quarter, loan and securities yield declines are expected to match declines in certificate of deposit funding costs resulting in September 2010 quarterly net interest margin similar to that seen for the six months ended June 30, 2010.


Noninterest and Fee Income


Total noninterest income for the quarter ended June 30, 2010 was $1,297,000 compared to $1,442,000 earned during the June 2009 quarter, a decline of $145,000, or 10%.  The decline was due to $213,000 lower mortgage banking income during 2010 compared to 2009, which saw historically low mortgage rates and a wave of customer loan refinancing.  In addition, PSB recognized a $122,000 gain on sale of a government guaranteed loan during the June 2009 quarter.  However, these declines were partially offset by increased service fee income of $145,000 as PSB introduced a revamped consumer overdraft protection product during the June 2010 quarter.  Parameters of the new overdraft protection product also generated increased charge-off of overdraft balances in the program from $21,000 in the June 2009 quarter to $51,000 in the June 2010 quarter.  Balance charge offs are recognized as other noninterest expense.  Pre-tax overdraft fee income, net of balance charge offs, was $636,000 during the six months ended June 30, 2010 and $442,000 during the equivalent period for 2009.


New Federal Reserve regulation over overdraft protection programs becomes effective during the September 2010 quarter for PSB.  The new rules require consumers to opt in to bank programs to provide overdraft protection.  Certain payments by consumers who do not opt into the bank’s overdraft program will not be paid by the bank, reducing overdraft fee income.  PSB expects overdraft income to decline due to the new rules.  In addition, recently enacted financial reform legislation is expected to decrease the amount of interchange income PSB collects on debit card and merchant payment activity, although the timing and extent of the reduction cannot



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yet be estimated.  During the six months ended June 30, card interchange revenue was $323,000 and $288,000 during 2010 and 2009, respectively.


Operating Expenses


Noninterest expenses totaled $3,801,000 during the June 2010 quarter compared to $3,817,000 during the prior June 2009 quarter, a decrease of $16,000.  However, the prior June 2009 quarter included a special FDIC insurance assessment totaling $264,000.  Prior to the special assessment and all other FDIC insurance premiums, June 2010 quarterly operating expenses increased $172,000, or 5.1%.  The most significant quarterly expense increase was for data processing expenses, up $95,000 as PSB converted and outsourced its core operating system to Jack Henry and Associates.  The new system, while increasing data processing costs, is expected to provide significant operating efficiencies and capacity for growth compared to the prior system maintained in house since 1997.


Year to date through June 30, 2010, total noninterest expense was $7,641,000 compared to $7,206,000 in 2009, an increase of $435,000, or 6.0%.  The majority of the increase was in employee salaries and benefits, which increased $318,000 or 8.4%.  Approximately $111,000 of the increase was from deferral of fewer direct loan origination wage costs during 2010 due to a decline in the number of new loan originations.  Data processing system conversion overtime and benefit costs also added approximately $75,000 to wages, with the remaining $132,000 of increased wages and benefits from annual inflationary pay increases and incentive plan growth based on actual and projected 2010 income and sales results.  


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.  More information concerning the operations and performance of PSB Holdings, Inc. may be found on the PSB investor relations website, www.psbholdingsinc.com.  PSB stock is traded on the Over the Counter Bulletin Board Exchange under the symbol PSBQ.


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 outlined under “Forward - Looking Statements” in Item 1A of PSB’s Form 10-K for the year ended December 31, 2009.  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

 

 

June 30,

March 31,

December 31,

September 30,

June 30,

Earnings and dividends:

2010

2010

2009

2009

2009

 

 

 

 

 

 

 

 

Net income

$     1,208

$        881

$        489

 

$        738

 

$        883

 

Basic earnings per share(3)

$       0.77

$       0.56

$       0.31

 

$       0.47

 

$       0.57

 

Diluted earnings per share(3)

$       0.77

$       0.56

$       0.31

 

$       0.47

 

$       0.57

 

Dividends declared per share(3)

$       0.36

$         –   

$       0.35

 

$         –   

 

$       0.35

 

Net book value per share

$     28.16

$     27.67

$     27.11

 

$     27.60

 

$     26.47

 

Semi-annual dividend payout ratio

27.04%

n/a

44.47%

 

n/a

 

28.90%

 

Average common shares outstanding

1,564,297

1,564,131

1,559,314

 

1,559,314

 

1,559,314

 

 

 

 

 

 

 

 

 

Balance sheet – average balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, net of allowances

$ 435,509

$ 436,989

$ 433,212

 

$ 432,237

 

$ 429,104

 

Total assets

$ 597,730

$ 603,988

$ 589,356

 

$ 588,180

 

$ 575,743

 

Deposits

$ 454,832

$ 457,055

$ 440,508

 

$ 441,741

 

$ 429,849

 

Stockholders’ equity

$   43,737

$   42,902

$   43,233

 

$   42,184

 

$   42,118

 

 

 

 

 

 

 

 

 

Performance ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets(1)

0.81%

0.59%

0.33%

 

0.50%

 

0.62%

 

Return on avg. stockholders’ equity(1)

11.08%

8.33%

4.49%

 

6.94%

 

8.41%

 

Average tangible stockholders’ equity

 

 

 

 

 

 

 

 

   to average assets(4)

7.03%

6.82%

7.01%

 

6.89%

 

6.97%

 

Net loan charge-offs to average loans(1)

0.51%

0.38%

0.72%

 

0.45%

 

0.16%

 

Nonperforming loans to gross loans

2.14%

2.53%

2.99%

 

2.21%

 

3.11%

 

Allowance for loan loss to gross loans

1.71%

1.73%

1.71%

 

1.54%

 

1.47%

 

Nonperforming assets to tangible equity

 

 

 

 

 

 

 

   plus the allowance for loan losses(4)

31.86%

32.99%

35.49%

 

34.91%

 

31.80%

 

Net interest rate margin(1)(2)

3.57%

3.28%

3.43%

 

3.09%

 

3.23%

 

Net interest rate spread(1)(2)

3.31%

3.02%

3.12%

 

2.76%

 

2.90%

 

Service fee revenue as a percent of

 

 

 

 

 

 

 

 

   average demand deposits(1)

3.67%

2.65%

2.51%

 

2.76%

 

2.64%

 

Noninterest income as a percent

 

 

 

 

 

 

 

 

   of gross revenue

14.79%

13.14%

17.30%

 

14.18%

 

16.45%

 

Efficiency ratio(2)

60.37%

67.55%

64.17%

 

64.13%

 

65.62%

 

Noninterest expenses to avg. assets(1)

2.55%

2.58%

2.74%

 

2.40%

 

2.66%

 

 

 

 

 

 

 

 

 

Stock price information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High

$     22.50

$     22.50

$     19.00

 

$     23.00

 

$     23.75

 

Low

$     19.20

$     15.05

$     15.05

 

$     18.00

 

$     17.00

 

Market value at quarter-end

$     20.00

$     20.00

$     15.05

 

$     19.50

 

$     23.50


(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

 

Six Months Ended

(dollars in thousands,

June 30,

 

June 30,

except per share data – unaudited)

2010

2009

 

2010

2009

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

Loans, including fees

$ 6,372 

 

$ 6,186

 

 

$ 12,501 

 

$ 12,349 

 

Securities:

 

 

 

 

 

 

 

 

 

Taxable

779 

 

805

 

 

1,534 

 

1,616 

 

Tax-exempt

317 

 

332

 

 

645 

 

687 

 

Other interest and dividends

5 

 

1

 

 

7 

 

3 

 

 

 

 

 

 

 

 

 

 

 

Total interest and dividend income

7,473 

 

7,324

 

 

14,687 

 

14,655 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

1,787 

 

2,240

 

 

3,670 

 

4,584 

 

FHLB advances

468 

 

577

 

 

928 

 

1,166 

 

Other borrowings

168 

 

168

 

 

399 

 

353 

 

Senior subordinated notes

142 

 

57

 

 

284 

 

57 

 

Junior subordinated debentures

113 

 

114

 

 

226 

 

227 

 

 

 

 

 

 

 

 

 

 

 

Total interest expense

2,678 

 

3,156

 

 

5,507 

 

6,387 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

4,795 

 

4,168

 

 

9,180 

 

8,268 

 

Provision for loan losses

585 

 

600

 

 

1,045 

 

1,300 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

4,210 

 

3,568

 

 

8,135 

 

6,968 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

Service fees

497 

 

352

 

 

845 

 

688 

 

Mortgage banking

283 

 

496

 

 

546 

 

1,253 

 

Gain on sale of loan

–    

 

122

 

 

–    

 

122 

 

Investment and insurance sales commissions

205 

 

151

 

 

344 

 

244 

 

Net loss on sale and write-down of securities

(20)

 

–   

 

 

(20)

 

–    

 

Loss on disposal of premises and equipment

–    

 

–   

 

 

–    

 

(98)

 

Increase in cash surrender value of life insurance

103 

 

102

 

 

204 

 

203 

 

Other noninterest income

229 

 

219

 

 

469 

 

398 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income

1,297 

 

1,442

 

 

2,388 

 

2,810 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

2,058 

 

2,029

 

 

4,110 

 

3,792 

 

Occupancy and facilities

480 

 

443

 

 

1,014 

 

985 

 

Loss on foreclosed assets

38 

 

8

 

 

149 

 

22 

 

Data processing and other office operations

324 

 

229

 

 

558 

 

484 

 

Advertising and promotion

79 

 

105

 

 

153 

 

178 

 

FDIC insurance premiums

241 

 

429

 

 

473 

 

595 

 

Other noninterest expenses

581 

 

574

 

 

1,184 

 

1,150 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

3,801 

 

3,817

 

 

7,641 

 

7,206 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

1,706 

 

1,193

 

 

2,882 

 

2,572 

 

Provision for income taxes

498 

 

310

 

 

793 

 

683 

 

 

 

 

 

 

 

 

 

 

 

Net income

$ 1,208 

 

$    883

 

 

$  2,089 

 

$  1,889 

 

Basic earnings per share

$   0.77 

 

$   0.57

 

 

$    1.34 

 

$    1.21 

 

Diluted earnings per share

$   0.77 

 

$   0.57

 

 

$    1.33 

 

$    1.21 

 



-8-






PSB Holdings, Inc.

 

 

Consolidated Balance Sheets

 

 

June 30, 2010 unaudited, December 31, 2009 derived from audited financial statements

 

June 30,

December 31,

(dollars in thousands, except per share data) - Unaudited

2010

2009

Assets

 

 

 

 

 

Cash and due from banks

$     9,211 

 

$   15,010 

 

Interest-bearing deposits and money market funds

2,341 

 

$        731 

 

Federal Funds sold

–    

 

10,596 

 

 

 

 

 

 

Cash and cash equivalents

11,552 

 

26,337 

 

 

 

 

 

 

Securities available for sale (at fair value)

107,958 

 

106,185 

 

Loans held for sale

494 

 

–    

 

Loans receivable, net of allowance for loan losses

441,208 

 

437,633 

 

Accrued interest receivable

2,247 

 

2,142 

 

Foreclosed assets

6,223 

 

3,776 

 

Premises and equipment, net

10,550 

 

10,283 

 

Mortgage servicing rights, net

1,163 

 

1,147 

 

Federal Home Loan Bank stock (at cost)

3,250 

 

3,250 

 

Cash surrender value of bank-owned life insurance

10,693 

 

10,489 

 

Other assets

4,820 

 

5,612 

 

 

 

 

 

 

TOTAL ASSETS

$ 600,158 

 

$ 606,854 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

$   54,718 

 

$   60,003 

 

Interest-bearing deposits

400,126 

 

398,728 

 

 

 

 

 

 

Total deposits

454,844 

 

458,731 

 

 

 

 

 

 

Federal Home Loan Bank advances

57,434 

 

58,159 

 

Other borrowings

24,864 

 

28,410 

 

Senior subordinated notes

7,000 

 

7,000 

 

Junior subordinated debentures

7,732 

 

7,732 

 

Accrued expenses and other liabilities

4,238 

 

4,552 

 

 

 

 

 

 

Total liabilities

556,112 

 

564,584 

 

 

 

 

 

 

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 – 1,564,297 shares

1,751 

 

 

 

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

 

 

1,751 

 

Additional paid-in capital

5,485 

 

5,599 

 

Retained earnings

39,872 

 

38,348 

 

Accumulated other comprehensive income

2,007 

 

1,776 

 

Treasury stock, at cost – 187,134 and 192,117 shares, respectively

(5,069)

 

(5,204)

 

 

 

 

 

 

Total stockholders’ equity

44,046 

 

42,270 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$ 600,158 

 

$ 606,854 

 



-9-





PSB Holdings, Inc.

 

 

 

 

 

 

 

Average Balances and Interest Rates

 

 

 

 

 

 

Quarter Ended  June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2010

 

 

 

2009

 

 

Avg. Bal.

Interest

Yield/Rate

 

Avg. Bal.

Interest

Yield/Rate

Assets

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

Loans(1)(2)

$ 443,263 

 

$ 6,413

 

5.80%

 

$ 435,247 

 

$ 6,222

 

5.73%

Taxable securities

73,245 

 

779

 

4.27%

 

65,916 

 

805

 

4.90%

Tax-exempt securities(2)

35,419 

 

480

 

5.44%

 

36,431 

 

503

 

5.54%

FHLB stock

3,250 

 

–   

 

0.00%

 

3,250 

 

–   

 

0.00%

Other

7,185 

 

5

 

0.28%

 

2,430 

 

1

 

0.17%

 

 

 

 

 

 

 

 

 

 

 

 

Total(2)

562,362 

 

7,677

 

5.48%

 

543,274 

 

7,531

 

5.56%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

8,900 

 

 

 

 

 

12,423 

 

 

 

 

Premises and equipment, net

10,457 

 

 

 

 

 

10,542 

 

 

 

 

Cash surrender value insurance

10,630 

 

 

 

 

 

10,110 

 

 

 

 

Other assets

13,135 

 

 

 

 

 

5,537 

 

 

 

 

Allowance for loan losses

(7,754)

 

 

 

 

 

(6,143)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$ 597,730 

 

 

 

 

 

$ 575,743 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities & stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings and demand deposits

$ 120,235 

 

$  351

 

1.17%

 

$  98,471 

 

$  348

 

1.42%

Money market deposits

92,559 

 

260

 

1.13%

 

70,298 

 

238

 

1.36%

Time deposits

187,703 

 

1,176

 

2.51%

 

207,563 

 

1,654

 

3.20%

FHLB borrowings

57,434 

 

468

 

3.27%

 

62,835 

 

577

 

3.68%

Other borrowings

23,352 

 

168

 

2.89%

 

26,040 

 

168

 

2.59%

Senior subordinated notes

7,000 

 

142

 

8.14%

 

2,834 

 

57

 

8.07%

Junior subordinated debentures

7,732 

 

113

 

5.86%

 

7,732 

 

114

 

5.91%

 

 

 

 

 

 

 

 

 

 

 

 

Total

496,015 

 

2,678

 

2.17%

 

475,773 

 

3,156

 

2.66%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

54,335 

 

 

 

 

 

53,517 

 

 

 

 

Other liabilities

3,643 

 

 

 

 

 

4,335 

 

 

 

 

Stockholders’ equity

43,737 

 

 

 

 

 

42,118 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$ 597,730 

 

 

 

 

 

$ 575,743 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$ 4,999

 

 

 

 

$ 4,375

 

 

Rate spread

 

 

3.31%

 

 

 

2.90%

Net yield on interest-earning assets

 

 

3.57%

 

 

 

3.23%


(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

 

 

 

 

 

 

Six months ended June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2010

 

 

 

2009

 

 

Avg. Bal.

Interest

Yield/Rate

 

Avg. Bal.

Interest

Yield/Rate

Assets

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

Loans(1)(2)

$ 444,111 

 

$ 12,583

 

5.71%

 

$ 430,971 

 

$ 12,419

 

5.81%

Taxable securities

70,778 

 

1,534

 

4.37%

 

65,552 

 

1,616

 

4.97%

Tax-exempt securities(2)

36,445 

 

977

 

5.41%

 

37,263 

 

1,041

 

5.63%

FHLB stock

3,250 

 

–   

 

0.00%

 

3,250 

 

–   

 

0.00%

Other

10,854 

 

7

 

0.13%

 

2,821 

 

3

 

0.21%

 

 

 

 

 

 

 

 

 

 

 

 

Total (2)

565,438 

 

15,101

 

5.39%

 

539,857 

 

15,079

 

5.63%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

9,184 

 

 

 

 

 

12,501 

 

 

 

 

Premises and equipment, net

10,388 

 

 

 

 

 

10,685 

 

 

 

 

Cash surrender value insurance

10,579 

 

 

 

 

 

10,059 

 

 

 

 

Other assets

12,840 

 

 

 

 

 

5,345 

 

 

 

 

Allowance for loan losses

(7,742)

 

 

 

 

 

(5,881)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$600,687 

 

 

 

 

 

$ 572,566 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities & stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Savings and demand deposits

$ 122,439 

 

$      680

 

1.12%

 

$ 102,329 

 

$      715

 

1.41%

Money market deposits

93,951 

 

574

 

1.23%

 

69,826 

 

460

 

1.33%

Time deposits

185,799 

 

2,416

 

2.62%

 

204,365 

 

3,409

 

3.36%

FHLB borrowings

58,021 

 

928

 

3.23%

 

62,873 

 

1,166

 

3.74%

Other borrowings

25,201 

 

399

 

3.19%

 

25,881 

 

353

 

2.75%

Senior subordinated notes

7,000 

 

284

 

8.18%

 

1,425 

 

57

 

8.07%

Junior subordinated debentures

7,732 

 

226

 

5.89%

 

7,732 

 

227

 

5.92%

 

 

 

 

 

 

 

 

 

 

 

 

Total

500,143 

 

5,507

 

2.22%

 

474,431 

 

6,387

 

2.71%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

53,755 

 

 

 

 

 

52,156 

 

 

 

 

Other liabilities

3,599 

 

 

 

 

 

4,394 

 

 

 

 

Stockholders’ equity

43,190 

 

 

 

 

 

41,585 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$ 600,687 

 

 

 

 

 

$ 572,566 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$  9,594

 

 

 

 

$  8,692

 

 

Rate spread

 

 

3.17%

 

 

 

2.92%

Net yield on interest-earning assets

 

 

3.42%

 

 

 

3.25%


(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-