-----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, ENy5HTkFnU+Vc8kJo+hWoK+L00iM4SGcrDxoTojogDKDrOGDc1ysI4/9dSevWUIY HhiDiMZfutGqkhUOz5SBAA== 0000916480-97-000021.txt : 19970815 0000916480-97-000021.hdr.sgml : 19970815 ACCESSION NUMBER: 0000916480-97-000021 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970814 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: 97660445 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 6/30/97 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 JUNE 30, 1997 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 June 30, 1997 was 886,190. PSB HOLDINGS, INC. FORM 10-Q QUARTER ENDED JUNE 30, 1997 PAGE NO. PART I. FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Statements of Income, Six Months Ended and Three Months Ended June 30, 1997 (unaudited) and June 30, 1996 (unaudited) 1 Condensed Consolidated Balance Sheets June 30, 1997 (unaudited) and December 31, 1996 (derived from audited financial statements) 2 Condensed Consolidated Statements of Cash Flows Six Months and Three Months Ended June 30, 1997 (unaudited) and June 30, 1996 (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. Legal Proceedings Item 2. Changes in Securities Item 3. Defaults Upon Senior Securities Item 4. Submission of Matters to Vote of Securities Holders 9 Item 5. Other Information Item 6. Exhibits and Reports on form 8-K 10 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS PSB HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME
($ thousands except share data -unaudited) Six Months Ended Three Months Ended June 30, June 30, 1997 1996 1997 1996 Interest income Interest and fees on loans $6,115 $5,734 $3,121 $2,866 Interest on investment securities Taxable 1,223 1,135 612 591 Tax-exempt 287 276 145 139 Other interest income 30 123 20 28 Total interest income 7,655 7,268 3,898 3,624 Interest expenses: Deposits 3,825 3,479 1,924 1,738 Short-term borrowings 194 352 117 174 Total interest expense 4,019 3,831 2,041 1,912 Net interest income before provision for losses on loans 3,636 3,437 1,857 1,712 Provision for losses on loans 90 90 45 45 Net interest income 3,546 3,347 1,812 1,667 Other income: Service fees 232 241 115 121 Insurance commissions 35 43 9 14 Net gains on other real estate -0- 188 -0- -0- Net gains on securities sales -0- -0- -0- -0- Other operating income 92 52 47 29 Total other income 359 524 171 164 Other expenses Salaries and related benefits 1,278 1,146 688 621 Net occupancy expense 355 346 167 165 FDIC insurance 10 1 5 -0- Computer operations 26 169 18 124 Other operating expense 552 485 284 193 Total other expenses 2,221 2,147 1,162 1,103 Income before income taxes 1,684 1,724 821 728 Provision for income taxes 542 573 260 233 Net income $1,142 $1,151 $ 561 $ 495 Income per share Basis: Weighted average of 890,099 shares in 1997 Weighted average of 902,425 shares in 1996 Net income per share $ 1.28 $ 1.28 $ .63 $ .55
PSB HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS
($ thousands) June 30, December 31, 1997* 1996* ASSETS Cash and cash equivalents $ 11,812 $ 10,152 Federal funds sold -0- -0- Investment securities - Held to maturity (Market value $12,212 & $11,763 at 1997 & 1996 respectively) 12,146 11,714 Available for sale (at fair market value, cost $38,391 & $39,881 at 1997 & 1996 respectively) 38,368 39,871 Total loans 141,646 138,011 Allowance for loan losses (1,798) (1,925) Net Loans 139,848 136,086 Bank premises and equipment 3,600 3,701 Other assets 2,628 2,634 TOTAL ASSETS $ 208,402 $ 204,158 LIABILITIES Noninterest-bearing deposits $ 25,837 $ 28,486 Interest-bearing deposits 153,765 149,643 Total deposits 179,602 178,129 Federal funds purchased 4,295 2,197 Short-term borrowings 4,274 3,569 Other liabilities 1,489 1,974 Total liabilities 189,660 185,869 STOCKHOLDERS' EQUITY Common stock - no par value with a stated value of $2 per share - 1,000,000 shares authorized - 902,425 shares issued 1,805 1,805 Additional paid in capital 7,159 7,159 Retained earnings 10,481 9,649 Net unrealized loss on securities available for sale, net of deferred income taxes (19) (9) Treasury stock, at cost - 16,235 shares in 1997, 7,000 shares in 1996 (684) (315) Total stockholders' equity 18,742 18,289 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 208,402 $204,158 *The consolidated balance sheet at June 30, 1997 is unaudited. The December 31, 1996 consolidated balance sheet is derived from audited financial statements.
PSB HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOW
Six Months Ended Three Months Ended June 30, June 30, ($ thousands - unaudited) 1997 1996 1997 1996 Cash flows from operating activities: Net income $1,142 $ 1,151 $ 561 $ 495 Provision for depreciation, and net amortization 227 182 114 111 Provisions for loan losses 90 90 45 45 Changes in operating assets and liabilities: Gain on sale of other real estate -0- (188) Other assets 6 (548) 150 (204) Other liabilities (485) (378) 254 148 Net cash provided by operating activities 980 309 1,124 595 Cash flows from investing activities: Proceeds from sale and maturities of: Held to maturity securities 980 971 780 826 Available for sale securities 3,957 10,077 980 3,980 Payment for purchase of: Held to maturity securities (1,417) (1,791) (350) (500) Available for sale securities (2,473) (12,033) (1,978) (2,182) Net change in loans (3,852) ( 4,263) (3,630) (1,778) Net (increase) decrease in federal funds sold -0- 3,177 -0- (2,506) Proceeds from sale of other real estate -0- 215 -0- -0- Capital expenditures (112) (640) (33) (531) Net cash used in investing activities (2,917) (4,287) (4,231) (2,691) Cash flows from financing activities: Net increase in deposits 1,473 3,663 1,599 7,555 Net increase in short-term borrowings 705 1,165 241 506 Net increase (decrease) in federal funds purchased 2,098 -0- 2,696 (1,246) Dividends paid (310) (328) (310) (328) Purchase of stock (369) -0- (369) -0- Net cash provided by financing activities 3,597 4,500 3,857 6,487 Net increase in cash and cash equivalents 1,660 522 750 4,391 Cash and cash equivalents at beginning of period 10,152 10,868 11,062 6,999 Cash and cash equivalents at end of period $11,812 $11,390 $11,812 $11,390 Supplemental cash flow information: Cash paid during the period for : Interest 4,019 3,831 2,041 1,912 Income taxes 492 505 446 470
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 material respects, 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 1996 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 $4,244 from December 31, 1996 to June 30, 1997. This is an increase of 2.08% due to increases in deposits of $1,473 and increases in borrowings of $2,803. Average total assets for June were $204,807. LOANS Net loans have increased by $3,762 from December 31, 1996 to June 30, 1997. This is an increase of 2.76%. CASH AND INVESTMENTS Cash increased by approximately $1,660 as of June 30, 1997 compared to December 31, 1996. Investments, on the other hand decreased by $1,071 or 2.08%. Two securities totalling $2,300 were sold without replacement. DEPOSITS Deposits increased by $1,473 from December 31, 1996 to June 30, 1997. Reflective of the day of the week of June 30. Average deposits for June were $178,897. SHORT TERM BORROWINGS Fed funds purchased increased by $2,098 from December 31, 1996 to June 30, 1997. Repurchase agreements increased $705. EQUITY Equity grew by $453 or 2.48% due to the following: Net income for the first six months of $1,142, an increase in the "Net unrealized loss on securities available for sale" of $10, dividends paid of $310 and treasury stock acquired of $369. The increase in the unrealized loss is a result of the market prices of the investment portfolio dropping as of June 30, 1997. OPERATING DATA SUMMARY GENERAL Net interest income for the first half of 1997 is $199 or 5.79% greater than it was for the same period in 1996. NON-INTEREST INCOME Non-interest income decreased by $165 in the period ending June 30, 1997 compared to the period ending June 30, 1996. This decrease is attribuable to the sale of Other Real Estate in January of 1996. Total proceeds from the sale were $215 with a net gain of $188. NON-INTEREST EXPENSE Non-interest expenses increased by 3.45% or $74 for the period ending June 30, 1997 when compared to the period ending June 30, 1996. NET INCOME Net income for the first half of 1997 is .78% lower than the same period in 1996 but earnings per share increased due to the reduced weighted average number of shares outstanding in the first half of 1997. KEY OPERATING RATIOS (unaudited) Ended June 30, 1997
SIX MONTH PERIOD THREE MONTH PERIOD 1997 1996 1997 1996 Return on assets (net income divided by average assets)(1) 1.13% 1.20% 1.10% 1.03% Return on Average Equity (net income divided by average equity)(1) 12.37% 13.33% 12.09% 11.05% Average Equity to Average Assets 9.12% 9.25% 9.12% 9.29% Interest Rate Spread (difference between average yield on interest earning assets and average cost of interest bearing liabilities) (1) 3.02% 2.96% 3.06% 2.91% Net Interest Margin (net interest income as a percentage of average interest earning assets)(1) 3.75% 3.84% 3.83% 3.84% Non-interest Expense to average assets(1) 2.19% 2.32% 2.28% 2.29% Allowance for loan losses to total loans at end of period 1.27% 1.46% 1.27% 1.46% (1) Annualized
PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Not Applicable ITEM 2. CHANGES IN SECURITIES Not Applicable ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not Applicable ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS Not Applicable ITEM 5. OTHER INFORMATION Not Applicable 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 BYLAWS PAGE OR INCORPORATED EXHIBIT (i) Restated Articles of Incorporation, as amended ..... 4(a)(1) (ii) Bylaws ............................................ 4(b)(1) 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* ...............10(a)(2) (b) Bonus Plan of Officers and Employees of the Bank*...10(b)(2) (c) Non-Qualified Retirement Plan for Directors of the Bank* ..........................................10(c)(2) EXHIBIT (21) - SUBSIDIARIES OF THE REGISTRANT ........... 22(2) EXHIBIT (27) - FINANCIAL DATA SCHEDULE * Denotes Executive Compensation Plans and Arrangements. Where exhibit has been previously filed and is incorporated herein by reference, exhibit numbers set forth herein correspond to the exhibit number where such exhibit can be found in the following reports of the registrant (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. August 14, 1997 TODD R. TOPPEN Todd R. Toppen Secretary and Controller (On behalf of the Registrant and as Principal Financial Officer) EXHIBIT INDEX TO FORM 10Q OF PSB HOLDINGS, INC. FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1997 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 IV, Item 14(c) of the Form 10-Q to which this Exhibit Index relates. EX-27 2 ART. 9 FDS FOR 6-MONTHS 10-Q ENDED JUNE 30, 1997
9 1,000 6-MOS DEC-31-1997 JUN-30-1997 11,812 0 0 0 38,368 12,146 12,212 141,646 1,798 208,402 179,602 8,569 1,489 0 0 0 1,805 16,937 208,402 6,115 1,510 30 7,655 3,825 4,019 3,636 90 0 2,221 1,684 1,684 0 0 1,142 1.28 1.28 3.75 894 0 0 1,697 1,925 239 22 1,798 1,798 0 0
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