Exhibit 99.1
PSB Announces Quarterly Earnings of $.57 Per Share
Wausau, Wisconsin [OTCBB:PSBQ.OB] – Peter W. Knitt, President and CEO of PSB Holdings, Inc. (“PSB”) and Peoples State Bank (“Peoples”) announced June 2009 quarterly earnings of $.57 per share on net income of $883,000 compared to earnings of $.65 per share on net income of $1,006,000 during the most recent March 2009 quarter and $.66 per share on net income of $1,019,000 during the prior year June 2008 quarter. An industry wide FDIC special assessment reduced PSB net income by $160,000, or $.10 per share during the June 2009 quarter. Year to date for the six months ended June 30, 2009, earnings were $1.21 per share on net income of $1,889,000 compared to $1.30 per share on net income of $2,021,000 last year. Excluding the FDIC special assessment, quarterly and year to date 2009 earnings per share would have been $.67 and $1.31, respectively.
Mr. Knitt indicated, “We continue to deliver consistent income returns despite increasing our provision for potential future credit losses. Ongoing mortgage refinancing income along with higher net interest income has offset significantly higher provisions for estimated loan losses and FDIC insurance costs. We are proud to be a source of financial stability to our customers and shareholders during this slow economy. PSB shareholders have received value from our financial strength with a recent increase in the semi-annual cash dividend to $.35 per share as well as a 10% increase in net book value per share during the past twelve months, reaching $26.47 per share at June 30, 2009.”
Knitt continued, “Many recent accomplishments give me optimism for the remainder of 2009. PSB closed its $7 million 8% Senior Subordinated Note issue on July 1 in the face of investor demand greater than our issue amount. The after tax cost of the Notes of 5.28% compares favorably to the U. S. Treasury’s TARP capital program cost of 6.45% originally considered by PSB. The new Notes will provide the capital required by banking regulation to continue loan growth. While some banks have curtailed lending, our commercial loan growth continues to be strong driving average total loans to increase 8% during the past year. This growth does not include residential mortgage loans sold to other investors for which PSB services the payments, which increased 25% since June 30, 2008. Today, loans receivable together with serviced mortgage loans total $663 million.”
Knitt also noted, “Certainly, the current recession impacts the northern Wisconsin economy similar to the rest of the country and we continue to see rising loan delinquencies with nonperforming loans currently 3.11% of the total portfolio. A large portion of these loans is due from one borrower in foreclosure on which we have strong collateral and do not expect a significant loss. Excluding this loan, nonperforming loans would be 1.85% of loans compared to 1.24% at June 30, 2008. We currently maintain an allowance for potential loan losses equal to 1.47% of total loans, up from 1.24% last year.”
Return on average assets was .62% (.73% before the FDIC special assessment described previously) and .76% during the quarters ended June 30, 2009 and 2008, respectively. Return on average stockholders’ equity was 8.41% (9.93% before the FDIC special assessment) and 10.58% during the quarters ended June 30, 2009 and 2008, respectively.
Return on average assets was .67% (.72% before the FDIC special assessment) and .76% during the six months ended June 30, 2009 and 2008, respectively. Return on average stockholders’ equity was 9.16% (9.94% before the FDIC special assessment) and 10.64% during the six months ended June 30, 2009 and 2008, respectively.
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Balance Sheet Growth
Total assets were $581.8 million at June 30, 2009 compared to $570.5 million at December 31, 2008 and $545.0 million at June 30, 2008, increasing $36.8 million or 6.7% during the past twelve months. Net loans receivable increased $9.6 million to $434.2 million at June 30, 2009 compared to $424.6 million at December 31, 2008, but increased $33.1 million, or 8.2%, compared to net loans of $401.1 million at June 30, 2008. Loan growth has come from commercial loans, including commercial real estate loans, while residential mortgage loans held for investment have declined as some borrowers refinanced into the secondary market.
Total deposits at June 30, 2009 were $431.8 million compared to $427.8 million at December 31, 2008 and $402.9 million at June 30, 2008. Local deposits grew $7.3 million, or 2.2%, to $346.6 million since June 30, 2008, with the remaining $21.6 million of deposit growth seen in wholesale and brokered deposits. All wholesale funding, including brokered deposits, FHLB advances, and other borrowings was $174.9 million, $155.5 million, and $155.9 million, at June 30, 2009, December 31, 2008, and June 30, 2008, respectively. Wholesale funding to total assets was 30.1%, 27.3%, and 28.6% at June 30, 2009, December 31, 2008, and June 30, 2008, respectively.
Asset Quality and Allowances for Loan Loss
PSB’s provision for loan losses was $600,000 in the June 2009 quarter compared to $700,000 in the most recent March 2009 quarter and $135,000 in the prior year June 2008 quarter. The provision for loan losses increased dramatically during 2009 from an increase in nonperforming loans as well as internal assessments of currently performing loans with factors that increase the risk for future delinquency.
Annualized net charge-offs continue to be lower than industry averages and were .16% and .15% of average loans during the quarters ended June 30, 2009 and March 31, 2009, respectively. Year to date, annualized net charge offs were .15% and .04% of average loans during 2009 and 2008, respectively. At June 30, 2009, the allowance for loan losses was $6,496,000 or 1.47% of total loans compared to $5,521,000, or 1.28% of total loans at December 31, 2008, and $5,047,000, or 1.24% of total loans at June 30, 2008.
Nonperforming assets increased $2,042,000, or 16.1%, to $14.7 million at June 30, 2009 compared to $12.7 million at March 31, 2009, and increased $2,864,000, or 24.2%, compared to $11.9 million at December 31, 2008. Nonperforming loans have increased dramatically since June 30, 2008 due primarily to the addition of a $5.5 million loan receivable during September 2008 whose source of future principal payments must come from sale of the lakefront/land development collateral. The increase in nonperforming assets during the quarter ended June 2009 was from addition of a $1.5 million purchased loan participation secured by developmental real estate construction. Excluding the large $5.5 million loan, nonperforming assets would have been $9.2 million at June 30, 2009, and $6.3 million at December 31, 2008, or 1.58% of total assets at June 30, 2009, compared to 1.11% of total assets at December 31, 2008, and 1.05% of total assets at June 30, 2008.
PSB believes it will not incur a significant loss on the $5.5 million problem loan based on the terms of a collateral appraisal obtained during June 2008 and interest from potential purchasers of the property following foreclosure, but did maintain a specific reserve for loss totaling $214,000 at June 30, 2009 and $200,000 at December 31, 2008. PSB expects to receive confirmation of the foreclosure sale during the September 2009 quarter.
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Excluding the $5.5 million nonperforming loan, at June 30, 2009, PSB’s internal credit grading system identified 19 separate loan relationships totaling $4.0 million against which $1,109,000 in loan loss reserves were recorded. Again excluding the $5.5 million loan, at December 31, 2008, PSB’s internal credit grading system identified 14 separate loan relationships totaling $1.8 million against which $610,000 in loan loss reserves were recorded.
PSB expects to see continued deterioration in credit quality in its commercial portfolio as the local economy contracts and impacts locally owned small to mid market businesses which make up its customer base. These factors are likely to increase the level of nonperforming assets in future quarters.
Restructured and nonaccrual loans remain classified as nonperforming loans until the uncertainty surrounding the credit is eliminated. Therefore, 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. Nonperforming assets are shown in the following table.
Non-Performing Assets as of | June 30, |
| December 31, | ||
(dollars in thousands) | 2009 | 2008 |
| 2008 | |
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Nonaccrual loans | $12,959 | $4,402 |
| $10,590 |
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Accruing loans past due 90 days or more | – | – |
| – |
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Restructured loans not on nonaccrual | 736 | 640 |
| 748 |
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Total nonperforming loans | 13,695 | 5,042 |
| 11,338 |
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Foreclosed assets | 1,028 | 680 |
| 521 |
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Total nonperforming assets | $14,723 | $5,722 |
| $11,859 |
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Nonperforming loans as a % of gross loans | 3.11% | 1.24% |
| 2.64% |
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Total nonperforming assets as a % of total assets | 2.53% | 1.05% |
| 2.08% |
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Capital and Liquidity
During the six months ended June 30, 2009, stockholders’ equity increased $1,378,000, or 3.5% from retained net income of $1,339,000 (net of $550,000 of dividends paid). During the June 2009 quarter, average tangible stockholders’ equity was 6.97% of average assets compared to 6.88% of assets during the March 2009 quarter and 6.99% of assets during the June 2008 quarter.
On July 1, 2009, PSB closed its $7 million 8% Senior Subordinated Notes issue and contributed the net proceeds to its subsidiary, Peoples State Bank. While the Notes are reflected as debt on the Consolidated Balance Sheets, the debt is reclassified as equity for banking regulatory purposes. Due to this increase in regulatory capital, PSB’s total risk adjusted capital ratio increased to approximately 12.4% compared to 10.96% at March 31, 2009. To retain “well capitalized” status under banking regulation, Peoples State Bank’s total risk adjusted capital ratio must be greater than 10%.
PSB regularly maintains access to wholesale markets to fund loan originations and manage local depositor needs. At June 30, 2009, unused (but available) wholesale funding was approximately $160 million, or 27% of total assets, compared to $118 million, or 21% of total assets at December 31, 2008. The increase in wholesale funding availability during the June 2009 quarter was due to PSB’s acceptance by the Federal Reserve to participate in their “Borrower in Custody” program in which performing
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commercial and commercial real estate loans are pledged against potential short-term Discount Window advances. Since the pledged commercial related loans were unencumbered and not generally accepted as collateral for other borrowing lines, the $43 million of additional borrowing capacity provided by the Discount Window program significantly increased the amount of wholesale funds unused and available. PSB continues to expand the collateral accepted under the program and expects to increase the total Discount Window maximum borrowing capacity from the current limit of $43 million to $100 million during the September 2009 quarter. Discount Window advances are expected to provide both emergency liquidity (as needed) as well as low cost funding for growth of adjustable rate loans held for investment.
Net Interest Margin
Tax adjusted net interest income totaled $4,375,000 during the June 2009 quarter compared to $4,318,000 in the March 2009 quarter and $3,782,000 in the June 2008 quarter Year to date tax adjusted net interest income was $8,692,000 through June 30, 2009 compared to $7,545,000 during 2008, an increase of 15.2%. Approximately $642,000 of the increase was from growth in earning assets over the prior year’s quarter and approximately $505,000 was from an increase in net interest margin from 3.02% during the six months ended June 30, 2008 to 3.25% during 2009.
In the most recent quarter, net margin decreased from 3.26% in the March 2009 quarter to 3.23% in the June 2009 quarter as a decline in loan yields of .16% from 5.89% to 5.73% was greater than the decline in interest bearing and time deposits costs of .13% from 2.52% to 2.39%. During the June 2009 quarter, wholesale funding and time deposit costs continued to fall but nonmaturity interest bearing deposit costs increased slightly. These core deposits are expected to be near their low rate of the interest rate cycle due to competition for such deposits. In the coming quarter, loan yields and certificate of deposit and wholesale funding costs are expected to decline similar amounts, resulting in continued strong net margin compared to that seen during calendar 2008.
Noninterest and Fee Income
Total noninterest income for the quarter ended June 30, 2009 was $1,442,000 compared to $1,072,000 earned during the June 2008 quarter, an increase of $370,000, or 34.5%. The increase resulted primarily from additional mortgage banking income of $263,000 and gain on sale of a loan totaling $122,000. Ongoing intervention by various United States Treasury programs and open market mortgage related asset purchases by the Federal Reserve since December 2008 have dramatically lowered long-term residential mortgage rates, continuing a wave of mortgage refinancing into the June 2009 quarter, although June 2009 quarterly mortgage banking income was 66% of the level seen during the March 2009 quarter. While some refinance activity continues, PSB expects quarterly mortgage banking income to continue to slow during the remainder of 2009.
Operating Expenses
Total noninterest expenses increased $676,000, or 21.5%, during the June 2009 quarter to $3,817,000 compared to total noninterest expenses of $3,141,000 during the June 2008 quarter. The majority of the increase was due to increased FDIC insurance expense of $356,000. Salaries and employee benefits also increased $308,000 compared to the prior year quarter. All other expenses increased a total of $12,000.
During the June 2009 quarter, the FDIC charged an industry wide special assessment equal to 5 basis points (.05%) of total assets to recapitalize the FDIC insurance fund in light of ongoing and expected bank failures. This special assessment increased PSB’s FDIC insurance expense by $264,000 during the quarter. PSB also expects the FDIC to exercise its right to charge further industry wide special assessments in the future although the final timing and amount of such assessments remains unknown.
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PSB expects FDIC insurance premiums during all of 2009 to be dramatically greater than seen during 2008.
Increased June 2009 quarterly wages and benefits were driven primarily by increased self insured health plan claims which increased $112,000, or 64% over the prior year’s June 2008 quarter. PSB expects health insurance expenses to decline in coming quarters from currently elevated levels. Since the prior year, PSB has also expanded its commercial product and services sales force to capitalize on market opportunities. Total salaries and wages have increased approximately $85,000, or 5.9% compared to the prior year’s quarter due to a larger employee base and annual inflationary wages increases.
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.
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 referred to under “Forward - Looking Statements” in Item 1 of PSB’s Form 10-K for the year ended December 31, 2008. PSB assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
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(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. |
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Consolidated Statements of Income |
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| Three Months Ended |
| Six Months Ended | ||
| June 30, |
| June 30, | ||
(dollars in thousands, except per share data – unaudited) | 2009 | 2008 |
| 2009 | 2008 |
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Interest and dividend income: |
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Loans, including fees | $ 6,186 | $ 6,245 |
| $ 12,349 | $ 12,737 |
Securities: |
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Taxable | 805 | 851 |
| 1,616 | 1,693 |
Tax-exempt | 332 | 342 |
| 687 | 672 |
Other interest and dividends | 1 | 18 |
| 3 | 58 |
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Total interest and dividend income | 7,324 | 7,456 |
| 14,655 | 15,160 |
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Interest expense: |
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Deposits | 2,240 | 2,904 |
| 4,584 | 6,067 |
FHLB advances | 577 | 633 |
| 1,166 | 1,239 |
Other borrowings | 168 | 237 |
| 353 | 496 |
Senior subordinated notes | 57 | – |
| 57 | – |
Junior subordinated debentures | 114 | 114 |
| 227 | 227 |
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Total interest expense | 3,156 | 3,888 |
| 6,387 | 8,029 |
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Net interest income | 4,168 | 3,568 |
| 8,268 | 7,131 |
Provision for loan losses | 600 | 135 |
| 1,300 | 270 |
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Net interest income after provision for loan losses | 3,568 | 3,433 |
| 6,968 | 6,861 |
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Noninterest income: |
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Service fees | 352 | 399 |
| 688 | 763 |
Mortgage banking | 496 | 306 |
| 1,253 | 608 |
Gain on sale of loan | 122 | – |
| 122 | – |
Investment and insurance sales commissions | 151 | 84 |
| 244 | 198 |
Loss on disposal of premises and equipment | – | (7) |
| (98) | (9) |
Increase in cash surrender value of life insurance | 102 | 91 |
| 203 | 180 |
Other noninterest income | 219 | 199 |
| 406 | 356 |
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Total noninterest income | 1,442 | 1,072 |
| 2,818 | 2,096 |
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Noninterest expense: |
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Salaries and employee benefits | 2,029 | 1,721 |
| 3,792 | 3,461 |
Occupancy and facilities | 443 | 501 |
| 985 | 1,012 |
Data processing and other office operations | 229 | 260 |
| 484 | 471 |
Advertising and promotion | 105 | 88 |
| 178 | 175 |
FDIC insurance premiums | 429 | 73 |
| 595 | 117 |
Other noninterest expenses | 582 | 498 |
| 1,180 | 1,023 |
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Total noninterest expense | 3,817 | 3,141 |
| 7,214 | 6,259 |
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Income before provision for income taxes | 1,193 | 1,364 |
| 2,572 | 2,698 |
Provision for income taxes | 310 | 345 |
| 683 | 677 |
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Net income | $ 883 | $ 1,019 |
| $ 1,889 | $ 2,021 |
Basic earnings per share | $ 0.57 | $ 0.66 |
| $ 1.21 | $ 1.30 |
Diluted earnings per share | $ 0.57 | $ 0.66 |
| $ 1.21 | $ 1.30 |
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PSB Holdings, Inc. |
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Consolidated Balance Sheets |
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June 30, 2009 unaudited, December 31, 2008 derived from audited financial statements | ||||
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(dollars in thousands, except per share data – unaudited) | 2009 | 2008 | ||
Assets |
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Cash and due from banks | $ 9,059 |
| $ 12,307 |
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Interest-bearing deposits and money market funds | 4,292 |
| 865 |
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Cash and cash equivalents | 13,351 |
| 13,172 |
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Securities available for sale (at fair value) | 103,818 |
| 102,930 |
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Loans held for sale | 138 |
| 245 |
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Loans receivable, net of allowance for loan losses | 434,182 |
| 424,635 |
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Accrued interest receivable | 2,150 |
| 2,195 |
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Foreclosed assets | 1,028 |
| 521 |
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Premises and equipment, net | 10,440 |
| 10,929 |
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Mortgage servicing rights, net | 1,046 |
| 785 |
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Federal Home Loan Bank stock (at cost) | 3,250 |
| 3,250 |
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Cash surrender value of bank-owned life insurance | 10,172 |
| 9,969 |
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Other assets | 2,196 |
| 1,855 |
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TOTAL ASSETS | $ 581,771 |
| $ 570,486 |
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Liabilities |
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Non-interest-bearing deposits | $ 55,333 |
| $ 54,233 |
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Interest-bearing deposits | 376,503 |
| 373,568 |
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Total deposits | 431,836 |
| 427,801 |
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Federal Home Loan Bank advances | 60,750 |
| 65,000 |
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Other borrowings | 28,839 |
| 25,631 |
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Senior subordinated notes | 6,550 |
| – |
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Junior subordinated debentures | 7,732 |
| 7,732 |
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Accrued expenses and other liabilities | 4,787 |
| 4,423 |
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Total liabilities | 540,494 |
| 530,587 |
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Stockholders' equity |
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Preferred stock – no par value: Authorized – 30,000 shares | – |
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Common stock – no par value with a stated value of $1 per share: |
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Authorized – 3,000,000 shares |
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Issued – 1,751,431 shares; Outstanding – 1,559,314 shares | 1,751 |
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Issued – 1,751,431 shares; Outstanding – 1,548,898 shares |
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| 1,751 |
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Additional paid-in capital | 5,586 |
| 5,856 |
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Retained earnings | 37,667 |
| 36,328 |
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Accumulated other comprehensive income | 1,477 |
| 1,450 |
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Treasury stock, at cost – 192,117 and 202,533 shares, respectively | (5,204) |
| (5,486) |
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Total stockholders’ equity | 41,277 |
| 39,899 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 581,771 |
| $ 570,486 |
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PSB Holdings, Inc. |
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Average Balances and Interest Rates |
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Quarter Ended June 30, |
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| 2009 |
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| 2008 |
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| Avg Bal | Interest | Yield/Rate |
| Avg Bal | Interest | Yield/Rate |
Assets |
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Interest-earning assets: |
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Loans(1)(2) | $ 435,247 | $ 6,222 | 5.73% |
| $ 401,619 | $ 6,277 | 6.29% |
Taxable securities | 65,916 | 805 | 4.90% |
| 64,616 | 857 | 5.33% |
Tax-exempt securities(2) | 36,431 | 503 | 5.54% |
| 35,942 | 518 | 5.80% |
FHLB stock | 3,250 | – | 0.00% |
| 3,209 | – | 0.00% |
Other | 2,430 | 1 | 0.17% |
| 3,176 | 18 | 2.28% |
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Total(2) | 543,274 | 7,531 | 5.56% |
| 508,562 | 7,670 | 6.07% |
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Non-interest-earning assets: |
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Cash and due from banks | 12,423 |
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| 9,581 |
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Premises and equipment, net | 10,542 |
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| 11,127 |
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Cash surrender value ins. | 10,110 |
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| 9,112 |
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Other assets | 5,537 |
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| 5,622 |
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Allowance for loan losses | (6,143) |
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| (4,984) |
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Total | $ 575,743 |
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| $ 539,020 |
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Liabilities & stockholders’ equity |
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Interest-bearing liabilities: |
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Savings and demand deposits | $ 98,471 | $ 348 | 1.42% |
| $ 83,374 | $ 416 | 2.01% |
Money market deposits | 70,298 | 238 | 1.36% |
| 70,358 | 382 | 2.18% |
Time deposits | 207,563 | 1,654 | 3.20% |
| 193,926 | 2,106 | 4.37% |
FHLB borrowings | 62,835 | 577 | 3.68% |
| 64,121 | 633 | 3.97% |
Other borrowings | 26,040 | 168 | 2.59% |
| 26,958 | 237 | 3.54% |
Senior subordinated notes | 2,834 | 57 | 8.07% |
| – | – | 0.00% |
Junior subordinated debentures | 7,732 | 114 | 5.91% |
| 7,732 | 114 | 5.93% |
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Total | 475,773 | 3,156 | 2.66% |
| 446,469 | 3,888 | 3.50% |
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Non-interest-bearing liabilities: |
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Demand deposits | 53,517 |
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| 49,434 |
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Other liabilities | 4,335 |
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| 4,388 |
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Stockholders’ equity | 42,118 |
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| 38,729 |
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Total | $ 575,743 |
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| $ 539,020 |
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Net interest income |
| $ 4,375 |
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| $ 3,782 |
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Rate spread |
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| 2.90% |
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| 2.57% |
Net yield on interest-earning assets |
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| 3.23% |
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| 2.99% |
(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%.
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PSB Holdings, Inc. |
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Average Balances and Interest Rates |
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Six months ended June 30, |
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| 2009 |
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| 2008 |
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| Avg Bal | Interest | Yield/Rate |
| Avg Bal | Interest | Yield/Rate |
Assets |
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Interest-earning assets: |
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Loans(1)(2) | $ 430,971 | $ 12,419 | 5.81% |
| $ 394,989 | $ 12,796 | 6.51% |
Taxable securities | 65,552 | 1,616 | 4.97% |
| 65,032 | 1,702 | 5.26% |
Tax-exempt securities(2) | 37,263 | 1,041 | 5.63% |
| 35,042 | 1,018 | 5.84% |
FHLB stock | 3,250 | – | 0.00% |
| 31,113 | – | 0.00% |
Other | 2,821 | 3 | 0.21% |
| 3,752 | 58 | 3.11% |
|
|
|
|
|
|
|
|
Total(2) | 539,857 | 15,079 | 5.63% |
| 501,928 | 15,574 | 6.24% |
|
|
|
|
|
|
|
|
Non-interest-earning assets: |
|
|
|
|
|
|
|
Cash and due from banks | 12,501 |
|
|
| 9,785 |
|
|
Premises and equipment, net | 10,685 |
|
|
| 11,099 |
|
|
Cash surrender value ins. | 10,059 |
|
|
| 8,975 |
|
|
Other assets | 5,345 |
|
|
| 5,999 |
|
|
Allowance for loan losses | (5,881) |
|
|
| (4,945) |
|
|
|
|
|
|
|
|
|
|
Total | $ 572,566 |
|
|
| $ 532,841 |
|
|
|
|
|
|
|
|
|
|
Liabilities & stockholders’ equity |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
Savings and demand deposits | $ 102,329 | $ 715 | 1.41% |
| $ 88,505 | $ 1,003 | 2.28% |
Money market deposits | 69,826 | 460 | 1.33% |
| 71,582 | 879 | 2.47% |
Time deposits | 204,365 | 3,409 | 3.36% |
| 186,531 | 4,185 | 4.51% |
FHLB borrowings | 62,873 | 1,166 | 3.74% |
| 60,769 | 1,239 | 4.10% |
Other borrowings | 25,881 | 353 | 2.75% |
| 26,541 | 496 | 3.76% |
Senior subordinated notes | 1,425 | 57 | 8.07% |
| – | – | 0.00% |
Junior subordinated debentures | 7,732 | 227 | 5.92% |
| 7,732 | 227 | 5.90% |
|
|
|
|
|
|
|
|
Total | 474,431 | 6,387 | 2.71% |
| 441,660 | 8,029 | 3.66% |
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
Demand deposits | 52,156 |
|
|
| 48,235 |
|
|
Other liabilities | 4,394 |
|
|
| 4,734 |
|
|
Stockholders’ equity | 41,585 |
|
|
| 38,212 |
|
|
|
|
|
|
|
|
|
|
Total | $ 572,566 |
|
|
| $ 532,841 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
| $ 8,692 |
|
|
| $ 7,545 |
|
Rate spread |
|
| 2.92% |
|
|
| 2.58% |
Net yield on interest-earning assets |
|
| 3.25% |
|
|
| 3.02% |
(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-