-----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, MtKW6zcvqk/cQydVdV6hv/xl2L699wM1b98k5kegXpQ+mFgXo9wB7TLxXIVc/KSM XVciW7ij4/RyX9tLUP2rPg== 0000948368-96-000001.txt : 19960816 0000948368-96-000001.hdr.sgml : 19960816 ACCESSION NUMBER: 0000948368-96-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960814 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: 96612184 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 6/30/96 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 JUNE 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 June 30, 1996 was 902,425. PSB HOLDINGS, INC. FORM 10-Q QUARTER ENDED JUNE 30, 1996 PAGE NO. PART I. FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Statements of Income, Six Months Ended and Three Months Ended June 30, 1996 (unaudited) and June 30, 1995 (unaudited) 1 Condensed Consolidated Balance Sheets June 30, 1996 (unaudited) and December 31, 1995 (derived from audited financial statements) 2 Condensed Consolidated Statements of Cash Flows Six Months and Three Months Ended Ended June 30, 1996 (unaudited) and June 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 4. Submission of Matters to Vote of Securities Holders 9 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, 1996 1995 1996 1995 Interest Income Interest and fees on loans $5,734 $5,165 $2,866 $2,651 Interest on investment securities Taxable 1,135 1,075 591 551 Tax-exempt 276 288 139 142 Other interest income 123 48 28 22 Total interest income 7,268 6,576 3,624 3,366 Interest Expenses: Deposits 3,479 3,003 1,738 1,615 Short-term borrowings 352 304 174 157 Total interest expense 3,831 3,307 1,912 1,772 Net interest income 3,437 3,269 1,712 1,594 Provisions for losses on loans 90 150 45 75 Net Interest Income 3,347 3,119 1,667 1,519 Other income: Service fees 241 232 121 102 Insurance commissions 43 54 14 47 Net gains on other real estate 188 -0- -0- -0- Net gains on securities sales -0- 26 -0- 18 Other operating income 52 43 29 36 Total other income 524 355 164 203 Other Expenses Salaries and related benefits 1,146 1,037 621 570 Net occupancy expense 346 269 165 132 FDIC insurance 1 154 -0- 77 Computer operations 169 95 124 47 Other operating expense 485 479 193 226 Total other expenses 2,147 2,034 1,103 1,052 Income before income taxes 1,724 1,440 728 670 Provision for income taxes 573 459 233 216 Net income $1,151 $ 981 $ 495 $ 454 Income per share Basis: Weighted Average of 902,425 shares in 1996 Weighted Average of 902,425 shares in 1995 Net income per share $ 1.28 $ 1.09 $ .55 $ .51
PSB HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS
($ thousands) June 30, December 31, ASSETS 1996* 1995* Cash and cash equivalents $ 11,390 $ 10,868 Federal Funds Sold 2,506 5,683 Investment Securities - Held to Maturity (Market Value $11,102,404 at 1996 $10,428,735 at 1995, respectively) 11,146 10,333 Available for sale (at $36,543,943 at 1996 and $34,273,321 at 1995, respectively) 36,051 34,643 Total Loans 129,605 125,325 Allowance for Loan Losses (1,889) (1,781) Net Loans 127,716 123,544 Bank premises and equipment 3,918 3,445 Other Assets 2,786 2,265 TOTAL ASSETS $195,513 $190,781 LIABILITIES Noninterest-bearing Deposits $ 23,202 $ 26,560 Interest-bearing Deposits 140,905 133,885 Total Deposits 164,107 160,445 Federal Funds purchased -0- -0- Short-term borrowings 12,265 11,099 Other Liabilities 1,411 1,785 Total liabilities 177,783 173,329 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 9,074 9,488 Net unrealized gains (loss) on securities available for sale (308) 232 Total stockholders' equity 17,730 17,452 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $195,513 $190,781 *The consolidated balance sheet at June 30, 1996 is unaudited. The December 31, 1995 consolidated balance sheet is derived from audited financial statements.
PSB HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOW
Six Months Ended Three Months Ended June 30, June 30, ($ thousands - unaudited) 1996 1995 1996 1995 Cash flows from operating activities: Net income $ 1,151 $ 981 $ 495 $ 454 Provision for depreciation, and net amortization 182 138 111 50 Provisions for loan losses 90 150 45 75 Gain on sale of other real estate (188) -0- Changes in operating assets and liabilities: Other assets (548) 333 (204) 365 Other liabilities (378) (281) 148 122 Net cash provided by operating activities 309 1,321 595 1,066 Cash flows from investing activities: Proceeds from sale and maturities of: Held to maturity securities 971 753 826 668 Available for sale securities 10,077 7,247 3,980 3,004 Payment for purchase of: Held to maturity securities (1,791) (1,482) (500) (1,114) Available for sale securities (12,033) (5,511) (2,182) (2,321) Net change in loans (4,263) (7,296) (1,778) (4,520) Net (increase) decrease in federal funds sold 3,177 (1,248) (2,506) 314 Proceeds from sale of other real estate 215 23 -0- 23 Capital expenditures (640) (339) (531) (168) Net cash used in investing activities (4,287) (7,853) (2,691) (4,114) Cash flows from financing activities: Net increase (decrease) in deposits 3,663 8,926 7,555 612 Net increase in short-term borrowings 1,165 2,320 506 2,620 Net increase in federal funds purchased -0- (4,999) (1,246) -0- Proceeds from exercise of stock options -0- -0- -0- -0- Dividends paid (328) (361) (328) (361) Net cash used in financing activities 4,500 5,886 6,487 2,871 Net increase in cash and cash equivalents 522 (646) 4,391 (177) Cash and cash equivalents at beginning of year 10,868 9,018 6,999 8,549 Cash and cash equivalents at end of quarter $11,390 $ 8,372 $11,390 $ 8,372 Supplemental Cash Flow Information: Cash paid during the quarter for: Interest 3,831 3,307 1,912 1,772 Income taxes 505 494 470 477
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 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 $4.7 million from December 31, 1995 to June 30, 1996. This is an increase of 2.5%. Loan growth is primarily responsible for this increase. LOANS Net loans have increased by $4.1 million from December 31, 1995 to June 30, 1996. This is an increase of 3.4%. CASH AND INVESTMENTS Investments & Fed Funds Sold have decreased slightly as a whole in the first six 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 June 30, 1996 was $3.6 million. This is an increase of 2.3%. Deposit growth was used to fund loans. SHORT TERM BORROWINGS Short term borrowing increased as of June 30. A $1 million Certificate of Deposit which was borrowed in May will mature in early July. EQUITY Equity grew by $.28 million or 1.6% due to the following: An expected increase in Retained Earnings from 1996 Net Income of $1.15 million, less an increase in the "Unrealized loss on securities available for Sale" of $.54 million, and cash dividends declared. The increase in the unrealized loss is a result of the market prices of the investment portfolio experiencing some losses as of June 30, 1996. OPERATING DATA SUMMARY GENERAL Net interest income for the first two quarters of 1996 is 7.3% 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 second quarter of 1996 is 9.7% higher than the same period in 1995. NON-INTEREST INCOME Non-interest income increased by 48% from the period ending June 30, 1996 compared to the period ending June 30, 1995. This increase is attributed to the net gain on sale of other Real Estate. Non-interest income for the second quarter of 1996 is 19.2% lower than the same period in 1995 as a result of lower insurance commissions. NON-INTEREST EXPENSE Non-interest expenses increased by 5.6% for the period ending June 30, 1996 when compared to the period ending June 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 operations 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. Non-interest expense for the second quarter of 1996 was 4.8% higher than the same period in 1995. NET INCOME Net income for the first half of 1996 is 17.3% higher than the first half of 1995 and earnings per share increased from $1.09 to $1.28, or 17.4% as well. Net income for the second quarter of 1996 was 9.0% higher than the same period of 1995 and Earnings per share was 7.8% higher in 1996 compared to 1995.
KEY OPERATING RATIOS (unaudited) Ended June 30, 1996 SIX MONTH PERIOD THREE MONTH PERIOD 1996 1995 1996 1995 Return on assets (net income divided by average assets) (1) 1.20% 1.13% 1.03% 1.02% Return on Average Equity (net income divided by average equity) (1) 13.33% 13.44% 11.05% 11.00% Average Equity to Average Assets 9.25% 9.21% 9.29% 9.31% Interest Rate Spread (difference between average yield on interest earning assets and average cost of interest bearing liabilities) (1) 2.96% 2.99% 2.91% 2.94% Net Interest Margin (net interest income as a percentage of average interest earning assets) (1) 3.84% 4.00% 3.84% 4.07% Non-interest Expense to average assets (1) 2.32% 2.51% 2.29% 2.37% Allowance for loan losses to total loans at end of period 1.46% 1.48% 1.46% 1.48% (1) Annualized
PART II - OTHER INFORMATION ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS The annual meeting of shareholders of the Company was held on April 16, 1996. The matters voted upon, including the number of votes cast for, against or withheld, as well as the number of abstentions and broker non-votes, as to each such matter were as follows:
MATTER SHARES Broker For Withheld Against Abstain Non-Vote Election of Directors (a) Leonard C. Britten 621,539 1,060 N/A N/A 0 (b) Gordon P. Connor 622,599 0 N/A N/A 0 (c) Patrick L. Crooks 622,599 0 N/A N/A 0 (d) William J. Fish 622,584 15 N/A N/A 0 (e) George L. Geisler 611,466 11,133 N/A N/A 0 (f) Gordon P. Gullickson 622,314 285 N/A N/A 0 (g) Lawrence Hanz, Jr. 620,334 2,265 N/A N/A 0 (h) Thomas R. Polzer 622,599 0 N/A N/A 0 (i) Thomas A. Riiser 622,599 0 N/A N/A 0 (j) Dr. Albert H. Stahmer 611,466 11,133 N/A N/A 0 (k) Eugene Witter 622,599 0 N/A N/A 0
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K: (a) Exhibits required by Item 601 of Regulation S-K. (27) Financial Data Schedule (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, 1996 TODD R. TOPPEN Todd R. Toppen Secretary and Controller (On behalf of the Registrant and as Principal Financial Officer) EXHIBIT INDEX PURSUANT TO
232.102(D), REGULATION S-T EXHIBIT (27) Financial Data Schedule EX-27 2 ART. 9 FDS FOR 6-MONTHS 10-Q ENDED JUNE 30, 1996
9 1,000 6-MOS DEC-31-1996 JUN-30-1996 11,390 0 2,506 0 36,051 11,146 11,102 129,605 1,889 195,513 164,107 12,265 1,411 0 0 0 1,805 15,925 195,513 5,734 1,411 123 7,268 3,479 3,831 3,437 90 0 2,147 1,724 1,724 0 0 1,151 1.28 1.28 3.84 278 0 0 2,746 1,781 15 33 1,889 1,889 0 0
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