Exhibit 99.1

PSB GROUP, INC. ANNOUNCES INCREASE IN LOAN LOSS PROVISION AND SUSPENSION OF
GOING PRIVATE MERGER TRANSACTION

Madison Heights, MI. October 4, 2007 -- The Board of Directors of PSB Group,
Inc., (OTCBB: PSBG), the bank holding company for Peoples State Bank, a Michigan
state-chartered bank with offices in Wayne, Oakland, Macomb and Genesee
Counties, reported that Peoples State Bank approved a $2,525,000 loan loss
provision during the third quarter. The announcement was made by Michael J.
Tierney, President & CEO of both PSB Group, Inc. and Peoples State Bank.

     Mr. Tierney stated,  "Michigan  continues to have many economic  challenges
that are impacting all sectors of our market,  with real estate being the worst.
We will continue to closely monitor our existing loan portfolio and increase the
level of due diligence  performed on new loan requests to ensure quality assets.
But, much depends on the economic  health of Michigan.  We will continue to make
loans to qualifying businesses and individuals to stimulate our economy and help
Michigan grow.  For example,  Peoples State Bank was just named the 2007 BANK OF
THE YEAR by the Oakland County  Business  Finance  Corporation in recognition of
our outstanding performance as a partner in the SBA 504 Loan Program."

     The Board of Directors of PSB Group, Inc. also suspended,  for at least 180
days,  the holding  company's  going private merger  transaction  which had been
announced  previously on May 24, 2007. After 180 days, dependent on the Michigan
economy and PSB Group's then current capital and earnings  situation,  the Board
will reconsider going private.

     PSB Group, Inc. is a registered  holding company with $502,000,000 in total
assets.  Its subsidiary,  Peoples State Bank,  currently serves the southeastern
Michigan area with 11 full-service  banking offices in Farmington Hills, Fenton,
Grosse Pointe Woods, Hamtramck,  Madison Heights,  Southfield,  Sterling Heights
(2),  Troy and Warren  (2).  The bank has  operated  under local  ownership  and
management since it first opened for business in 1909.

     Universal Mortgage Corporation,  a wholly-owned subsidiary of Peoples State
Bank, originates residential mortgage loans in the southeastern Michigan area.

Contact:   David A. Wilson
           Senior Vice President & CFO
           (248) 548-2900