EXHIBIT 5
                          LUSE GORMAN POMERENK & SCHICK
                           A PROFESSIONAL CORPORATION
                                ATTORNEYS AT LAW

                     5335 WISCONSIN AVENUE, N.W., SUITE 400
                             WASHINGTON, D.C. 20015

                            TELEPHONE (202) 274-2000
                            FACSIMILE (202) 362-2902
                                 www.luselaw.com

WRITER'S DIRECT DIAL NUMBER                                      WRITER'S EMAIL
(202) 274-2000                                            rpomerenk@luselaw.com


October 4, 2006

Board of Directors
PSB Holdings, Inc.
40 Main Street
Putnam, Connecticut 06260

                    Re:      PSB Holdings, Inc. 2005 Stock-Based Incentive Plan
                             Registration Statement on Form S-8

Ladies and Gentlemen:

     You have  requested  the  opinion  of this firm as to  certain  matters  in
connection with the issuance of PSB Holdings, Inc. (the "Company") common stock,
par value $.10 per share (the  "Common  Stock"),  pursuant to the PSB  Holdings,
Inc. 2005  Stock-Based  Incentive  Plan (the "Stock  Incentive  Plan").  We have
reviewed the Company's  Charter,  Registration  Statement on Form S-8 (the "Form
S-8"), as well as applicable statutes and regulations  governing the Company and
the offer and sale of the Common Stock.

     Based on the foregoing, we are of the following opinion:

     Upon the  effectiveness  of the Form S-8, the Common Stock,  when issued in
connection with the exercise of options granted  pursuant to the Stock Incentive
Plan and shares of Common Stock granted under the Stock  Incentive Plan, will be
legally issued, fully paid and non-assessable.

     This  opinion  has  been  prepared  solely  for the use of the  Company  in
connection  with the  preparation  and filing of the Form S-8, and should not be
used for any other purpose or relied upon by any other person  without the prior
written  consent of this firm.  We hereby  consent to the use of this opinion in
the Form S-8.

                                Very truly yours,


                                ---------------------------------
                                /s/ Luse Gorman Pomerenk & Schick

                                LUSE GORMAN POMERENK & SCHICK
                                A Professional Corporation