Condensed Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Parent Company Only Financial Statements

NOTE 24          Condensed Parent Company Only Financial Statements

The following are condensed balance sheets as of December 31, 2014 and 2013, and condensed statements of income and cash flows for the years ended December 31, 2014, 2013, and 2012, for PSB Holdings, Inc.

Balance Sheets

December 31, 2014 and 2013

Assets	2014		2013
Cash and due from banks	$	3,826	$	3,502
Investment in Peoples State Bank		70,161		66,801
Other assets		747		840
TOTAL ASSETS	$	74,734	$	71,143
Liabilities and Stockholders’ Equity
Accrued dividends payable	$	652	$	644
Other borrowings		500		1,500
Senior subordinated notes		4,000		4,000
Junior subordinated debentures		7,732		7,732
Other liabilities		389		514
Total stockholders’ equity		61,461		56,753
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	74,734	$	71,143

Statements of Income

Years Ended December 31, 2014, 2013, and 2012

	2014		2013		2012
Income:
Dividends from Peoples State Bank	$	3,900	$	4,000	$	7,700
Dividends from other investments		6		6		5
Interest		6		5		10
Total income	$	3,912		4,011		7,715
Expenses:
Interest on other borrowings		27		54		0
Interest expense on senior subordinated notes		150		184		578
Interest expense on junior subordinated debentures		340		341		342
Transfer agent and shareholder communication		52		47		68
Other		85		136		348
Total expenses		654		762		1,336
Income before income taxes and equity in undistributed net income of Peoples State Bank		3,258		3,249		6,379
Recognition of income tax benefit		251		293		431
Net income before equity in undistributed net income of Peoples State Bank		3,509		3,542		6,810
Equity in undistributed net income of Peoples State Bank		2,931		1,202		(801	)
Net income	$	6,440	$	4,744	$	6,009

Statements of Cash Flows

Years Ended December 31, 2014, 2013, and 2012

	2014			2013			2012
Increase (decrease) in cash and due from banks:
Cash flows from operating activities:
Net income	$	6,440		$	4,744		$	6,009
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of Peoples State Bank		(2,931	)		(1,202	)		801
(Increase) decrease in other assets		41			147			(21	)
Decrease in other liabilities		(5	)		(98	)		(2	)
Increase (decrease) in dividends payable		8			644			(583	)
Net cash provided by operating activities		3,553			4,235			6,204
Cash flows from investing activities:
Purchase Marathon State Bank common stock		0			0			(5,482	)
Investment in Peoples State Bank		0			0			(5	)
Net cash used in investing activities		0			0			(5,487	)
Cash flows from financing activities:
Repayment of senior subordinated notes		0			(3,000	)		0
Proceeds from other borrowings		0			2,000			0
Repayment of other borrowings		(1,000	)		(500	)		0
Proceeds from exercise of stock options		0			0			9
Dividends declared		(1,316	)		(1,289	)		(1,247	)
Purchase of treasury stock		(913	)		(269	)		(262	)
Net cash used in financing activities		(3,229	)		(3,058	)		(1,500	)
Net increase (decrease) in cash and due from banks		324			1,177			(783	)
Cash and due from banks at beginning		3,502			2,325			3,108
Cash and due from banks at end	$	3,826		$	3,502		$	2,325