-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NgU7Q0R3GWs8Nh0uT3phV7V0NaVI3Bd/YS9zpiHwDqCsmWe2LZqfk906hUiRlDQQ n4WHj5Ea2x/SzBZMiRmwBw== 0000916480-96-000025.txt : 19961115 0000916480-96-000025.hdr.sgml : 19961115 ACCESSION NUMBER: 0000916480-96-000025 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961113 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PSB HOLDINGS INC /WI/ CENTRAL INDEX KEY: 0000948368 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 391804877 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-26480 FILM NUMBER: 96661511 BUSINESS ADDRESS: STREET 1: 1905 WEST STEWART AVE CITY: WAUSAU STATE: WI ZIP: 54401 BUSINESS PHONE: 7158422191 MAIL ADDRESS: STREET 1: 1905 WEST STEWART AVE CITY: WAUSAU STATE: WI ZIP: 54401 FORMER COMPANY: FORMER CONFORMED NAME: PSB HOLDINGS INC /WI/ DATE OF NAME CHANGE: 19950721 FORMER COMPANY: FORMER CONFORMED NAME: PEOPLES STATE BANK /WI/ DATE OF NAME CHANGE: 19950721 10-Q 1 10Q FOR 9/30/96 FOR PSB HOLDINGS, INC. FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended SEPTEMBER 30, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 0-26480 PSB HOLDINGS, INC. (Exact name of registrant as specified in charter) WISCONSIN 39-1804877 (State of incorporation) (I.R.S Employer Identification Number) 1905 WEST STEWART AVENUE WAUSAU, WISCONSIN 54401 (Address of principal executive office) Registrant's telephone number, including area code: 715-842-2191 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report), and (2) has been subject to such filing requirements for the past 90 days. Yes X No The number of common shares outstanding at September 30, 1996 was 895,425. PSB HOLDINGS, INC. FORM 10-Q QUARTER ENDED SEPTEMBER 30, 1996 PAGE NO. PART I. FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Statements of Income, Nine Months and Three Months Ended September 30, 1996 (unaudited) and September 30, 1995 (unaudited) 1 Condensed Consolidated Balance Sheets September 30, 1996 (unaudited) and December 31, 1995 (derived from audited financial statements) 2 Condensed Consolidated Statements of Cash Flows Nine Months and Three Months Ended September 30, 1996 (unaudited) and September 30, 1995 (unaudited) 3 Notes to Condensed Consolidated Financial Statements 4 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 5 PART II. OTHER INFORMATION Item 1. Exhibits and Reports on form 8-K 9 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS PSB HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME
($ thousands except share data -unaudited) Nine Months Ended Three Months Ended September 30, September 30, 1996 1995 1996 1995 Interest income Interest and fees on loans $ 8,687 $ 7,937 $ 2,953 $ 2,772 Interest on investment securities Taxable 1,730 1,607 595 532 Tax-exempt 415 432 139 144 Other interest income 158 77 35 29 Total interest income 10,990 10,053 3,722 3,477 Interest expenses: Deposits 5,271 4,669 1,792 1,666 Short-term borrowings 520 477 168 173 Total interest expense 5,791 5,146 1,960 1,839 Net interest income before provision for losses on loans 5,199 4,907 1,762 1,638 Provisions for losses on loans 135 165 45 15 Net interest income 5,064 4,742 1,717 1,623 Other income: Service fees 378 352 137 120 Insurance commissions 43 61 -0- 7 Net gains on other real estate 203 26 15 -0- Net gains on securities sales -0- -0- -0- -0- Other operating income 121 64 69 21 Total other income 745 503 221 148 Other expenses Salaries and related benefits 1,696 1,535 550 498 Net occupancy expense 520 399 174 130 FDIC insurance 1 146 -0- (8) Computer operations 184 142 15 47 Other operating expense 800 685 315 206 Total other expenses 3,201 2,907 1,054 873 Income before income taxes 2,608 2,338 884 898 Provision for income taxes 840 751 267 292 Net income $ 1,768 $ 1,587 $ 617 $ 606 Income per share Basis: Weighted average of 902,375 shares in 1996 Weighted average of 902,425 shares in 1995 Net income per share $ 1.96 $ 1.76 $ .68 $ .67
PSB HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS
($ thousands) September 30, December 31, 1996* 1995* ASSETS Cash and cash equivalents $ 11,706 $ 10,868 Federal funds sold -0- 5,683 Investment securities - Held to maturity (Market value $11,784 & 10,429 11,784 10,333 at 1996 & 1995 respectively) Available for sale (at fair market value, cost $38,296 & 34,273 37,937 34,643 at 1996 & 1995 respectively) Total loans 134,645 125,325 Allowance for loan losses (1,902) (1,781) Net Loans 132,743 123,544 Bank premises and equipment 3,852 3,445 Other assets 2,787 2,265 TOTAL ASSETS $ 200,809 $ 190,781 LIABILITIES Noninterest-bearing deposits $ 26,762 $ 26,560 Interest-bearing deposits 143,150 133,885 Total deposits 169,912 160,445 Federal funds purchased 3,745 -0- Short-term borrowings 7,579 11,099 Other borrowed money 315 -0- Other liabilities 1,138 1,785 Total liabilities 182,689 173,329 STOCKHOLDERS' EQUITY Common stock - no par value with a stated value of $2.00 per share - 1,000,000 shares authorized - 902,425 shares issued 1,805 1,805 Additional paid in capital 7,159 5,927 Retained earnings 9,695 9,488 Net unrealized gain (loss) on securities available for sale (224) 232 Less: Treasury stock - 7,000 shares at 9/30/96 (315) -0- Total stockholders' equity 18,120 17,452 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 200,809 $ 190,781 *The consolidated balance sheet at September 30, 1996 is unaudited. The December 31, 1995 consolidated balance sheet is derived from audited financial statements.
PSB HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOW
Nine Months Ended Three Months Ended September 30, September 30, ($ thousands - unaudited) 1996 1995 1996 1995 Cash flows from operating activities: Net income $ 1,768 $ 1,587 617 606 Provision for depreciation, and net amortization 268 216 86 78 Provisions for loan losses 135 165 45 15 Gain on sale of other real estate (203) -0- (15) -0- Changes in operating assets and liabilities: Other assets (575) 307 (27) (26) Other liabilities (307) (493) 71 (212) Net cash provided by operating activities 1,086 1,782 777 461 Cash flows from investing activities: Proceeds from sale and maturities of: Held to maturity securities 1,146 953 175 200 Available for sale securities 11,738 9,188 1,661 1,941 Payment for purchase of: Held to maturity securities ( 2,609) ( 2,584) (818) ( 1,102) Available for sale secruities (15,495) ( 6,514) (3,462) ( 1,003) Net change in loans ( 9,334) (10,132) (5,071) ( 2,836) Net decrease in federal funds sold 5,683 -0- 2,506 1,248 Proceeds from sale of other real estate 230 35 15 12 Capital expenditures (656) (954) (16) (615) Net cash used in investing activities ( 9,297) (10,008) (5,010) ( 2,155) Cash flows from financing activities: Net increase in deposits 9,468 11,300 5,805 2,374 Net increase (decrease) in short-term borrowings ( 3,521) 1,807 (4,686) ( 513) Net increase (decrease) federal funds purchased 3,745 ( 4,810) 3,745 189 Proceeds from exercise of stock options -0- -0- -0- -0- Dividends paid ( 328) ( 378) -0- ( 17) Purchase of treasury stock ( 315) -0- ( 315) -0- Net cash provided by financing activities 9,049 7,919 4,549 2,033 Net increase (decrease) in cash and cash equivalents 838 ( 307) 316 339 Cash and cash equivalents at beginning of period 10,868 9,018 11,390 8,372 Cash and cash equivalents at end of period $11,706 $ 8,711 $ 11,706 $ 8,711 Supplemental cash flow Information: Cash paid during the period for : Interest 5,791 5,146 1,960 1,839 Income taxes 825 710 320 216
PSB HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. The accompanying financial statements in the opinion of management reflect all adjustments which are normal and recurring in nature and which are necessary for a fair statement of the results for the periods presented. In all regards, the financial statements have been presented in accordance with generally accepted accounting principles. 2. Earnings per share of common stock is based on the weighted average number of common shares outstanding. 3. Refer to notes to the financial statements which appear in the 1995 annual report for the company's accounting policies which are pertinent to these statements. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (All $ amounts are in thousands, except per share amounts) RESULTS OF OPERATIONS TOTAL ASSETS Total assets have increased by over $10,000 from December 31, 1995 to September 30, 1996. This is an increase of 5.3%. Loan growth is primarily responsible for the increase in assets. LOANS Net loans have increased by $9,200 from December 31, 1995 to September 30, 1996. This is an increase of 7.4%. CASH AND INVESTMENTS Investments & Fed Funds Sold have decreased $938 as a whole in the first nine months of 1996. Fed Funds Sold as of year end have been reinvested in U.S. Government securities. DEPOSITS Deposit growth from December 31, 1995 to September 30, 1996 was $9,500. This is an increase of 5.9%. Deposit growth was used to fund loan growth. SHORT TERM BORROWINGS Short term borrowings increased $225 as of September 30, 1996, an increase of 2.0%. Repurchase agreements decreased $3,500 or 31.7% but were replaced by Fed Funds Purchased of $3,745 at September 30, 1996. Funds totalling $315 were used to purchase Treasury Stock. EQUITY Equity grew by $668 or 3.8% due to 1996 Net Income of $1,768 less an increase in the "Unrealized loss on securities available for Sale" of $456, cash dividends declared, and the acquisition of $315 in Treasury Stock. The increase in the unrealized loss on securities available for sale is a result of the market prices of the investment portfolio experiencing some losses as of September 30, 1996. OPERATING DATA SUMMARY GENERAL Net interest income for the first three quarters of 1996 is 6.8% higher than it was for the same period in 1995. This increase occurred despite the overall increase in deposit rates. Net interest income for the third quarter of 1996 is 5.8% higher than the same period in 1995. NON-INTEREST INCOME Non-interest income increased by 48.1% from the period ending September 30, 1996 compared to the period ending September 30, 1995. Part of this increase is attributed to the net gain on sale of Other Real Estate. Non- interest income has also increased for 1996 compared to 1995 with the implementation of our investment center and the commissions generated by it. NON-INTEREST EXPENSE Non-interest expenses increased 10.1% for the period ending September 30, 1996 when compared to the period ending September 30, 1995. The primary reasons for the change are an increase in overhead costs from adding a new branch office and the operating costs attributed to growth. Computer operation expense increased as a result of our conversion to an in-house processing system. These expenses were offset by a significant decrease in FDIC Insurance premiums. NET INCOME Net income for nine months of 1996 is 11.4% higher than the same period in 1995 and earnings per share increased from $1.76 to $1.96, or 11.4%. Net income for the third quarter of 1996 was 1.8% higher than the same period of 1995 and Earnings per share was 1.5% higher in 1996 compared to 1995.
KEY OPERATING RATIOS (unaudited) Ended September 30, 1996 NINE MONTH PERIOD THREE MONTH PERIOD 1996 1995 1996 1995 Return on assets (net income divided by average assets) (1) 1.21% 1.20% 1.24% 1.34% Return on Average Equity (net income divided by average equity) (1) 13.18% 14.44% 13.72% 14.93% Average Equity to Average Assets 9.18% 9.25% 9.05% 8.98% Interest Rate Spread (difference between average yield on interest earning assets and average cost of interest bearing liabilities) (1) 2.95% 3.11% 2.98% 2.90% Net Interest Margin (net interest income as a percentage of average interest earning assets (1) 3.73% 3.83% 3.75% 3.84% Non-interest Expense to average assets (1) 2.19% 2.19% 2.12% 1.93% Allowance for loan losses to total loan at end of period 1.41% 1.46% 1.41% 1.46% (1) Annualized
PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K: (a) Exhibits required by Item 601 of Regulation S-K. EXHIBIT (3) - ARTICLES OF INCORPORATION AND PAGE BYLAWS (a) Restated Articles of Incorporation, as amended ................................... 9(1) (b) Bylaws ....................................... 11(2) EXHIBIT (4) - INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS (a) Articles of Incorporation and Bylaws (see Exhibits 3(a) and (b)) EXHIBIT (10) - MATERIAL CONTRACTS (a) Bonus Plan of Directors of the Bank .......... 54(2) (b) Bonus Plan of Officers and Employees of the Bank ......................................... 55(2) (c) Non-Qualified Retirement Plan for Directors of the Bank .................................. 56(2) EXHIBIT (21) - SUBSIDIARIES OF THE REGISTRANT ..... 57(2) EXHIBIT (27) - FINANCIAL DATA SCHEDULE Page numbers set forth herein correspond to the page numbers using the sequential numbering system for documents filed on paper or the page numbers as filed via EDGAR in electronic format where such exhibit can be found in the following reports of the company (Commission File No. 0-26480) filed with the Securities and Exchange Commission: (1) Registrant's current report on Form 8-K dated May 30, 1995. (2) Registrant's annual report on Form 10-K for the fiscal year ended December 31, 1995 (b) Reports on Form 8-K: None 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 thereunto duly authorized. PSB HOLDINGS, INC. November 12, 1996 TODD R. TOPPEN Todd R. Toppen Secretary and Controller (On behalf of the Registrant and as Principal Financial Officer) EXHIBIT INDEX TO FORM 10-Q OF PSB HOLDINGS, INC. FOR THE PERIOD ENDED SEPTEMBER 30, 1996 Pursuant to section 102(d) of Regulation S-T (17 C.F.R.
232.102(d)) EXHIBIT 27 - FINANCIAL DATA SCHEDULE Exhibits required by Item 601 of Regulation S-K which have been previously filed and are incorporated by reference are set forth in Part II, Item 6(a) of the Form 10-Q to which this Exhibit Index relates. EX-27 2 ART. 9 FDS FOR 9-MONTHS 10-Q ENDED SEPTEMBER 30, 1996
9 1,000 9-MOS DEC-31-1996 SEP-30-1996 11,706 0 0 0 37,937 11,784 11,784 134,645 1,902 200,809 169,934 11,324 1,197 0 0 0 1,805 16,630 200,809 8,687 2,145 158 10,990 5,271 5,791 5,199 135 0 3,201 2,608 2,608 0 0 1,741 1.93 1.93 3.82 335 0 0 1,564 1,781 44 30 1,902 1,902 0 0
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