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8-K - PSB FORM 8-K - PSB HOLDINGS INC /WI/ | psb8k.htm |
Exhibit 99.1
PSB Announces Quarterly Earnings of $.85 Per Share
Wausau, Wisconsin [OTCBB:PSBQ] Peter W. Knitt, President and CEO of PSB Holdings, Inc. (PSB) and Peoples State Bank (Peoples) reported September 2010 quarterly earnings of $.85 per share on net income of $1,331,000 compared to earnings of $.77 per share on net income of $1,208,000 during the most recent June 2010 quarter and $.47 per share on net income of $738,000 during the prior year September 2009 quarter.
President Knitt commented, September 2010 quarterly net income of $1,331,000 reached a record high and $.85 earnings per share equaled the previous high seen during the December 2007 quarter which included a nonrecurring tax benefit of $.13 per share from a victory in Tax Court. Increased net interest margin continues to drive income gains, which has also benefited from a moderation in credit and foreclosure losses. We have also seen a substantial pickup in residential mortgage refinancing activity during the September 2010 quarter due to further long-term rate declines, which increased mortgage banking income compared to levels seen earlier during 2010.
During the nine months ended September 30, 2010, earnings increased 30% to $2.19 per share on net income of $3,420,000 compared to earnings of $1.68 per share on net income of $2,627,000 during 2009. Increased earnings year to date were due to higher net interest income, increased deposit service fees, and lower provision for loan losses, which outpaced increased wage and benefit expense and a decline in mortgage banking income.
Total assets remained at $600.2 million at September 30, 2010 as they were at June 30, 2010, compared to $606.9 million at December 31, 2009. President Knitt noted, Net loans receivable declined $10.7 million during the September 2010 quarter as certain large commercial borrowers paid down lines of credit and many customers worked to reduce debt levels. However, we continue to see increased market share in originated secondary market loans with off balance sheet serviced mortgage loans increasing $15 million, or 6%, during the nine months ended September 30, 2010, totaling $253 million at quarter-end.
Return on average assets was .87% and .50% during the quarter ended September 30, 2010 and 2009, respectively. Return on average stockholders equity was 11.70% and 6.94% during the quarter ended September 30, 2010 and 2009, respectively.
Return on average assets was .76% and .61% during the nine months ended September 30, 2010 and 2009, respectively. Return on average stockholders equity was 10.39% and 8.41% during the nine months ended September 30, 2010 and 2009, respectively.
Balance Sheet Growth
Total assets were $600.2 million at September 30, 2010 and June 30, 2010 compared to $586.6 million at September 30, 2009. During the recent September 2010 quarter, commercial related loans decreased $8.5 million while cash and cash equivalents increased $9.2 million. Also during the September 2010 quarter, deposits decreased $2.4 million (primarily from lower retail time deposits), but have increased $9.3 million, or 2%, since September 30, 2009. During the September 2010 quarter, wholesale funding including brokered deposits, FHLB advances, and other borrowings declined $570,000 to $164.0 million, or 27.3% of total assets, down slightly from 27.4% of assets at June 30, 2010.
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Asset Quality and Allowances for Loan Loss
PSBs provision for loan losses was $510,000 in the September 2010 quarter compared to $585,000 in the most recent June 2010 quarter and $800,000 in the prior year September 2009 quarter. During the nine months ended September 30, provision for loan losses was $1,555,000 in 2010 compared to $2,100,000 in 2009. The provision for loan losses decreased during 2010 compared to 2009 due to a stabilization of the average internal credit quality grades assigned to loans and identification of fewer new credits requiring large specific reserves.
Nonperforming loans decreased $227,000, or 2.5%, during the quarter ended September 2010 to $9.4 million. Foreclosed assets decreased $469,000 to $5.8 million at September 30, 2010 compared to $6.2 million at June 30, 2010 primarily from sale of $395,000 of foreclosed properties for a net gain of $24,000 during the quarter. In addition, certain existing foreclosed properties were partially written down $130,000 to current value based on recent market information and sale activity. Total nonperforming assets decreased $696,000, or 4.4%, to $15.1 million at September 30, 2010 from $15.8 million at June 30, 2010.
While PSB believes the most significant declines in general credit quality and the economy in its local markets have occurred, some borrowers continue to manage fragile cash flows and debt servicing ability as the economy has yet to sustain a meaningful recovery. The longer significant recovery is delayed, the more difficult it will be for some borrowers to continue scheduled debt payments as previously unencumbered collateral is pledged for new working capital and balance sheet equity is drawn down, potentially increasing future provision for loan losses. In addition, foreclosed property may increase during the next several quarters as PSB works through ongoing collection and foreclosure actions. A continued slow local economy impacts the value of collateral and foreclosed assets, potentially increasing losses on foreclosed borrowers and properties during the coming quarters.
Restructured and nonaccrual loans remain classified as nonperforming loans until the uncertainty surrounding the credit is eliminated. 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 or repaid.
At September 30, 2010, PSBs internal credit grading system identified 22 separate loan relationships totaling $3.9 million against which $2.0 million in specific loan loss reserves were allocated. At June 30, 2010, PSBs internal credit grading system identified 18 separate loan relationships totaling $3.7 million against which $2.0 million in specific loan loss reserves were allocated.
Nonperforming assets are shown in the following table.
Non-Performing Assets as of | September 30, |
| December 31, | ||
(dollars in thousands) | 2010 | 2009 |
| 2009 | |
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Nonaccrual loans | $ 9,387 | $ 9,104 |
| $ 13,298 |
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Accruing loans past due 90 days or more | | |
| |
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Restructured loans not on nonaccrual | | 620 |
| |
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Total nonperforming loans | 9,387 | 9,724 |
| 13,298 |
|
Foreclosed assets | 5,754 | 6,803 |
| 3,776 |
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Total nonperforming assets | $ 15,141 | $ 16,527 |
| $ 17,074 |
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Nonperforming loans as a % of gross loans | 2.14% | 2.21% |
| 2.99% |
|
Total nonperforming assets as a % of total assets | 2.52% | 2.82% |
| 2.81% |
|
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Total nonperforming assets as a percentage of total assets was 2.52% at September 30, 2010 compared to 2.64% at June 30, 2010 and 2.82% at September 30, 2009. Total nonperforming assets as a percentage of total tangible common equity including the allowance for loan losses was 29.47%, 31.86%, and 34.91% at September 30, 2010, June 30, 2010, and September 30, 2009, respectively. At September 30, 2010, all nonperforming assets aggregating $500,000 or more measured by gross principal outstanding (before specific loan reserves) represented 42% of all nonperforming assets as summarized in the following table.
Significant Nonperforming Assets at September 30, 2010 (dollars in thousands) |
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| Gross | Specific | ||
Collateral Description | Asset Type | Principal | Reserves | ||
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Vacation home/recreational properties (three) | Foreclosed | $ 1,767 |
| n/a |
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Nonowner occupied multi use, multi-tenant retail RE | Foreclosed | 1,700 |
| n/a |
|
Building supply inventory and accounts receivable | Nonaccrual | 827 |
| 700 |
|
Out of area condo land development - participation | Foreclosed | 792 |
| n/a |
|
Owner occupied restaurant and business assets | Nonaccrual | 720 |
| 100 |
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Nonowner occupied retail/office building rental | Nonaccrual | 592 |
| |
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Total listed assets |
| $ 6,398 |
| $ 800 |
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Total bank wide nonperforming assets |
| $ 15,141 |
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Listed assets as a % of total nonperforming assets |
| 42% |
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Annualized net loan charge-offs were .16% during the September 2010 quarter compared to .51% during the June 2010 quarter and .45% during the September 2009 quarter. At September 30, 2010, the allowance for loan losses was $8,001,000 or 1.82% of total loans (85% of nonperforming loans) compared to $7,665,000, or 1.71% of total loans (80% of nonperforming loans) at June 30, 2010, and $6,801,000, or 1.54% of total loans (70% of nonperforming loans) at September 30, 2009.
Capital and Liquidity
During the nine months ended September 30, 2010, stockholders equity increased approximately $3.8 million from retained net income of $2.9 million, net of dividends of $565,000 declared, and an increase in net unrealized gains on securities available for sale of $1.1 million after income tax effects. Net book value per share at September 30, 2010 was $29.43 compared to $27.11 at December 31, 2009, and $27.60 at September 30, 2009, an increase of 6.6% during the past twelve months. Average tangible stockholders equity was 6.99% of average assets during the nine months ended September 30, 2010 compared to 6.91% during the same period ending September 30, 2009.
For regulatory purposes, the $7 million senior subordinated notes and $7.7 million junior subordinated debentures reflected as debt on the Consolidated Balance Sheet are reclassified as Tier 2 and Tier 1 regulatory equity capital, respectively. The $7 million of senior subordinated notes were issued during 2009 to support commercial related loan growth and bolster PSBs total regulatory capital position. PSB was considered well capitalized under banking regulations at September 30, 2010.
During the September 2010 quarter, PSB entered into an interest rate swap to lower the cost of fixed rate interest payments due on the $7.7 million junior subordinated debentures from 5.82% to a new fixed rate of 4.42% through September 2017. The reduction in fixed rate is estimated to lower interest expense on the debentures by approximately $105,000 per year.
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PSB regularly maintains access to wholesale markets to fund loan originations and manage local depositor needs. At September 30, 2010, unused (but available) wholesale funding was approximately $176 million, or 29% of total assets, compared to $188 million, or 31% of total assets at December 31, 2009. Certain municipal securities held in PSBs investment portfolio may also be available for pledging as collateral against repurchase agreements and FHLB advances under conditions dictated by the lender. However, due to the difficulty and uncertainty of the amount ultimately available as collateral, unpledged municipal securities are not considered available for funding in PSBs internal analysis of liquidity flexibility or in the figures reported as unused but available wholesale funding above.
PSBs ability to borrow funds on a short-term basis from the Federal Reserve Discount Window is an important part of its liquidity analysis. Although PSB has no Discount Window amounts outstanding, approximately 44% of unused but available liquidity at September 30, 2010 was represented by available Discount Window advances compared to 40% of available liquidity at December 31, 2009.
Net Interest Margin
Tax adjusted net interest income totaled $5,220,000 during the September 2010 quarter compared to $4,337,000 in the September 2009 quarter, an increase of 20.4% although quarterly average earning assets increased just 2.0%. The increase is due to significantly greater net interest margin, which was 3.65% in the September 2010 quarter compared to 3.09% during the September 2009 quarter. Net margin has increased primarily from the existence of interest rate floors on loans during a period when deposit and other funding costs continue to decline with market rate trends.
September 2010 quarterly net interest margin increased to 3.65% from 3.57% during the June 2010 quarter. During the September 2010 quarter, PSB collected a $100,000 prepayment penalty in connection with a debt refinancing with an existing customer whose relationship was retained. Net interest margin during the September 2010 quarter would have been 3.58% without recognition of the prepayment penalty, indicating stable net margin levels when compared to the prior June 2010 quarter. Recognition of the prepayment penalty also increased the loan yield to 5.87% during the September 2010 quarter, which would have been 5.78% before the prepayment penalty, compared to a loan yield of 5.80% during the June 2010 quarter.
Year to date for the nine months ended September 30, 2010, tax adjusted net interest income has totaled $14.8 million, up from $13.0 million during the prior year to date period, an increase of 13.7%. Increased net interest income is due primarily to higher net interest margin, which accounted for 72% of the increase, while earning assets growth accounted for 28% of the increase.
Reinvestment yields for investment security cash flows remain very low and the September 2010 quarterly securities yield of 4.41% is expected to decline as similar securities available for reinvestment provide yields generally less than 2.00%. Yield on the securities portfolio has declined .39% since the March 2010 quarter, from 4.80% to 4.41% currently. The ongoing decline in securities yields is expected to be offset by further declines in deposit funding costs in the coming quarter, with net interest margin continuing near the average net margin of 3.50% seen year to date during 2010.
Noninterest and Fee Income
Total noninterest income for the quarter ended September 30, 2010 was $1,463,000 compared to $1,203,000 earned during the September 2009 quarter, an increase of $260,000, or 22%. The increase was due to $99,000 of higher deposit service fees from customer overdraft activity and a $143,000 increase in other income from higher card interchange income and recognition of a significant loan guarantee fee. While September 2010 quarterly mortgage banking income of $375,000 was similar to the $372,000 seen during September 2009, current quarterly mortgage banking income was 37% higher than
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the average seen in the prior 2010 quarters and is expected to continue higher during the upcoming December 2010 quarter.
Effective August 15, 2010, new Federal Reserve regulation concerning overdraft protection programs required consumers to opt in to bank programs to obtain overdraft protection. Certain payments by consumers who did not opt into the banks overdraft program are not paid by the bank, reducing overdraft fee income. During the September 2010 quarter, service fee income declined $10,000, or 2% compared to the June 2010 quarter. PSB expects continued declines in overdraft fee income due to the new regulation during the December 2010 quarter. In addition, certain provisions of the Dodd-Frank Wall Street Reform Act are expected to decrease the amount of interchange income PSB collects on debit card and merchant payment activity, although the timing and extent of the reduction cannot yet be reasonably estimated. During the nine months ended September 30, card interchange revenue was $554,000 and $450,000 during 2010 and 2009, respectively.
For the nine months ended September 30, 2010, total noninterest income declined to $3.8 million, or 4%, from $4.0 million during 2009 due primarily to lower mortgage banking income of $704,000. However, this reduction was significantly offset by higher deposit service fees of $256,000, increased investment sales commissions of $122,000, and higher card interchange revenue of $104,000.
Operating Expenses
Noninterest expenses totaled $3,979,000 during the September 2010 quarter compared to $3,553,000 during the prior September 2009 quarter, an increase of $426,000. Higher salaries and employee benefits led the increase, growing $300,000, while data processing expense grew $111,000 and other noninterest expense increased $72,000. Increased base wages accounted for just $18,000 of the salaries and benefits increase, which was primarily impacted by $163,000 greater health insurance expense under PSBs self-insured benefit plan. During the quarter, accrual for estimated year-end and other incentive plans increased approximately $22,000, and $43,000 fewer direct loan origination costs were deferred as commercial loan originations declined compared to 2009. Data processing expenses increased due to new costs associated with the outsourced core data processing system installed during the June 2010 quarter compared to costs incurred under the previous in-house processing system.
Year to date through September 30, 2010, total noninterest expense was $11,620,000 compared to $10,759,000 in 2009, an increase of $861,000, or 8.0%. The majority of the increase was in employee salaries and benefits, which increased $618,000 or 10.8%. Base wages represented $99,000 of the increase, growing 2.2% over 2009. Overtime and other benefit pay related to the June 2010 quarter core processing system conversion accounted for approximately $75,000 of the increase. Other factors included fewer deferred direct loan origination costs of $154,000, increased health and dental insurance plan expense of $99,000, up 15% over the prior year, and higher year-end incentive and profit sharing plan costs of $64,000 based on projected 2010 income and sales results.
FDIC insurance expense declined during the September 2010 quarter compared to the prior year quarter due to a change in estimated amortization of the prepaid FDIC insurance assessment of $2.5 million paid in December 2009. The change now recognizes amortization of the prepaid assessment as incurred rather than using a straight-line method through December 2012 as previously calculated through June 2010. This change in estimate lowered FDIC expense by approximately $102,000 during the September 2010 quarter but had no impact on 2010 year to date results. For the year to date period ended September 30, 2010, FDIC expense decreased $211,000 compared to 2009. However, the prior June 2009 quarter included a special FDIC insurance assessment totaling $264,000. Prior to the special assessment, 2010 FDIC insurance expense increased $53,000, or 10%.
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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. More information concerning the operations and performance of PSB Holdings, Inc. may be found on the PSB investor relations website, www.psbholdingsinc.com. PSB stock is traded on the Over the Counter Bulletin Board Exchange under the symbol PSBQ.
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 outlined under Forward - Looking Statements in Item 1A of PSBs Form 10-K for the year ended December 31, 2009. PSB assumes no obligation to update or supplement forward-looking statements that become untrue because of events subsequent to the release of this filing.
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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 |
| Nine Months Ended | ||||||
| September 30, |
| September 30, | ||||||
(dollars in thousands, except per share data unaudited) | 2010 | 2009 |
| 2010 | 2009 | ||||
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Interest and dividend income: |
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Loans, including fees | $ 6,558 |
| $ 6,162 |
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| $ 19,059 |
| $ 18,511 |
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Securities: |
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Taxable | 730 |
| 782 |
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| 2,264 |
| 2,398 |
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Tax-exempt | 315 |
| 333 |
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| 960 |
| 1,020 |
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Other interest and dividends | 9 |
| 2 |
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| 16 |
| 5 |
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Total interest and dividend income | 7,612 |
| 7,279 |
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| 22,299 |
| 21,934 |
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Interest expense: |
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Deposits | 1,702 |
| 2,174 |
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| 5,372 |
| 6,758 |
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FHLB advances | 473 |
| 564 |
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| 1,401 |
| 1,730 |
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Other borrowings | 169 |
| 160 |
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| 568 |
| 513 |
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Senior subordinated notes | 141 |
| 142 |
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| 425 |
| 199 |
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Junior subordinated debentures | 108 |
| 113 |
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| 334 |
| 340 |
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Total interest expense | 2,593 |
| 3,153 |
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| 8,100 |
| 9,540 |
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Net interest income | 5,019 |
| 4,126 |
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| 14,199 |
| 12,394 |
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Provision for loan losses | 510 |
| 800 |
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| 1,555 |
| 2,100 |
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Net interest income after provision for loan losses | 4,509 |
| 3,326 |
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| 12,644 |
| 10,294 |
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Noninterest income: |
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Service fees | 487 |
| 388 |
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| 1,332 |
| 1,076 |
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Mortgage banking | 375 |
| 372 |
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| 921 |
| 1,625 |
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Gain on sale of loan | |
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| 122 |
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Investment and insurance sales commissions | 138 |
| 116 |
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| 482 |
| 360 |
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Net loss on sale and write-down of securities | |
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| (20) |
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Loss on disposal of premises and equipment | (7) |
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| (7) |
| (98) |
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Increase in cash surrender value of life insurance | 103 |
| 103 |
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| 307 |
| 306 |
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Other noninterest income | 367 |
| 224 |
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| 836 |
| 622 |
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Total noninterest income | 1,463 |
| 1,203 |
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| 3,851 |
| 4,013 |
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Noninterest expense: |
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Salaries and employee benefits | 2,233 |
| 1,933 |
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| 6,343 |
| 5,725 |
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Occupancy and facilities | 431 |
| 415 |
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| 1,445 |
| 1,400 |
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Loss on foreclosed assets | 156 |
| 151 |
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| 305 |
| 174 |
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Data processing and other office operations | 350 |
| 239 |
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| 908 |
| 723 |
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Advertising and promotion | 99 |
| 88 |
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| 252 |
| 266 |
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FDIC insurance premiums | 117 |
| 206 |
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| 590 |
| 801 |
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Other noninterest expenses | 593 |
| 521 |
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| 1,777 |
| 1,670 |
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Total noninterest expense | 3,979 |
| 3,553 |
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| 11,620 |
| 10,759 |
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Income before provision for income taxes | 1,993 |
| 976 |
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| 4,875 |
| 3,548 |
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Provision for income taxes | 662 |
| 238 |
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| 1,455 |
| 921 |
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Net income | $ 1,331 |
| $ 738 |
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| $ 3,420 |
| $ 2,627 |
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Basic earnings per share | $ 0.85 |
| $ 0.47 |
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| $ 2.19 |
| $ 1.68 |
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Diluted earnings per share | $ 0.85 |
| $ 0.47 |
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| $ 2.19 |
| $ 1.68 |
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PSB Holdings, Inc. |
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Consolidated Balance Sheets |
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September 30, 2010 unaudited, December 31, 2009 derived from audited financial statements | ||||
| September 30, | December 31, | ||
(dollars in thousands, except per share data unaudited) | 2010 | 2009 | ||
Assets |
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Cash and due from banks | $ 7,173 |
| $ 15,010 |
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Interest-bearing deposits and money market funds | 2,947 |
| 731 |
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Federal Funds sold | 10,603 |
| 10,596 |
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Cash and cash equivalents | 20,723 |
| 26,337 |
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Securities available for sale (at fair value) | 107,334 |
| 106,185 |
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Other investments | 2,484 |
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Loans held for sale | 741 |
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Loans receivable, net of allowance for loan losses | 430,495 |
| 437,633 |
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Accrued interest receivable | 2,446 |
| 2,142 |
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Foreclosed assets | 5,754 |
| 3,776 |
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Premises and equipment, net | 10,589 |
| 10,283 |
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Mortgage servicing rights, net | 1,042 |
| 1,147 |
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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 | 10,796 |
| 10,489 |
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Other assets | 4,581 |
| 5,612 |
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TOTAL ASSETS | $ 600,235 |
| $ 606,854 |
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Liabilities |
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Non-interest-bearing deposits | $ 56,037 |
| $ 60,003 |
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Interest-bearing deposits | 396,390 |
| 398,728 |
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Total deposits | 452,427 |
| 458,731 |
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Federal Home Loan Bank advances | 57,434 |
| 58,159 |
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Other borrowings | 24,789 |
| 28,410 |
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Senior subordinated notes | 7,000 |
| 7,000 |
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Junior subordinated debentures | 7,732 |
| 7,732 |
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Accrued expenses and other liabilities | 4,809 |
| 4,552 |
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Total liabilities | 554,191 |
| 564,584 |
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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 1,564,297 shares | 1,751 |
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Issued 1,751,431 shares; Outstanding 1,559,314 shares |
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| 1,751 |
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Additional paid-in capital | 5,495 |
| 5,599 |
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Retained earnings | 41,203 |
| 38,348 |
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Accumulated other comprehensive income | 2,664 |
| 1,776 |
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Treasury stock, at cost 187,134 and 192,117 shares, respectively | (5,069) |
| (5,204) |
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Total stockholders equity | 46,044 |
| 42,270 |
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TOTAL LIABILITIES AND STOCKHOLDERS EQUITY | $ 600,235 |
| $ 606,854 |
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PSB Holdings, Inc. |
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Average Balances and Interest Rates |
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Quarter Ended September 30, |
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| 2010 |
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| 2009 |
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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) | $ 445,979 |
| $ 6,597 |
| 5.87% |
| $ 438,775 |
| $ 6,201 |
| 5.61% |
Taxable securities | 73,053 |
| 730 |
| 3.96% |
| 68,294 |
| 782 |
| 4.54% |
Tax-exempt securities(2) | 35,449 |
| 477 |
| 5.34% |
| 36,011 |
| 505 |
| 5.56% |
FHLB stock | 3,250 |
| |
| 0.00% |
| 3,250 |
| |
| 0.00% |
Other | 9,799 |
| 9 |
| 0.36% |
| 10,100 |
| 2 |
| 0.08% |
|
|
|
|
|
|
|
|
|
|
|
|
Total(2) | 567,530 |
| 7,813 |
| 5.46% |
| 556,430 |
| 7,490 |
| 5.34% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks | 9,274 |
|
|
|
|
| 9,832 |
|
|
|
|
Premises and equipment, net |
|
|
|
|
|
|
|
|
|
|
|
Cash surrender value insurance | 10,546 |
|
|
|
|
| 10,364 |
|
|
|
|
Other assets | 10,732 |
|
|
|
|
| 10,263 |
|
|
|
|
Allowance for loan losses | 14,084 |
|
|
|
|
| 7,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total | (7,868) |
|
|
|
|
| (6,538) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & stockholders equity | $ 604,298 |
|
|
|
|
| $ 588,180 |
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and demand deposits | $ 120,321 |
| $ 327 |
| 1.08% |
| $ 105,989 |
| $ 369 |
| 1.38% |
Money market deposits | 95,252 |
| 257 |
| 1.07% |
| 76,727 |
| 264 |
| 1.37% |
Time deposits | 187,587 |
| 1,118 |
| 2.36% |
| 203,274 |
| 1,541 |
| 3.01% |
FHLB borrowings | 57,434 |
| 473 |
| 3.27% |
| 59,595 |
| 564 |
| 3.75% |
Other borrowings | 23,304 |
| 169 |
| 2.88% |
| 24,613 |
| 160 |
| 2.58% |
Senior subordinated notes | 7,000 |
| 141 |
| 7.99% |
| 7,000 |
| 142 |
| 8.05% |
Junior subordinated debentures | 7,732 |
| 108 |
| 5.54% |
| 7,732 |
| 113 |
| 5.80% |
|
|
|
|
|
|
|
|
|
|
|
|
Total | 498,630 |
| 2,593 |
| 2.06% |
| 484,930 |
| 3,153 |
| 2.58% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand deposits | 56,105 |
|
|
|
|
| 55,751 |
|
|
|
|
Other liabilities | 4,427 |
|
|
|
|
| 5,315 |
|
|
|
|
Stockholders equity | 45,136 |
|
|
|
|
| 42,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total | $ 604,298 |
|
|
|
|
| $ 588,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net interest income |
| $ 5,220 |
|
|
|
| $ 4,337 |
|
| ||
Rate spread |
|
| 3.40% |
|
|
| 2.76% | ||||
Net yield on interest-earning assets |
|
| 3.65% |
|
|
| 3.09% |
(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-
PSB Holdings, Inc. |
|
|
|
|
|
|
| ||||
Average Balances and Interest Rates |
|
|
|
|
|
| |||||
Nine months ended September 30, |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
| ||||
|
| 2010 |
|
|
| 2009 |
| ||||
| Avg. Bal. | Interest | Yield/Rate |
| Avg. Bal. | Interest | Yield/Rate | ||||
Assets |
|
|
|
|
|
|
| ||||
Interest-earning assets: |
|
|
|
|
|
|
| ||||
Loans(1)(2) | $ 444,739 |
| $ 19,180 |
| 5.77% |
| $ 433,601 |
| $ 18,620 |
| 5.74% |
Taxable securities | 71,440 |
| 2,264 |
| 4.24% |
| 66,477 |
| 2,398 |
| 4.82% |
Tax-exempt securities(2) | 36,109 |
| 1,455 |
| 5.39% |
| 36,841 |
| 1,545 |
| 5.61% |
FHLB stock | 3,250 |
| |
| 0.00% |
| 3,250 |
| |
| 0.00% |
Other | 10,633 |
| 16 |
| 0.20% |
| 5,274 |
| 5 |
| 0.13% |
|
|
|
|
|
|
|
|
|
|
|
|
Total(2) | 566,171 |
| 22,915 |
| 5.41% |
| 545,443 |
| 22,568 |
| 5.53% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks | 9,223 |
|
|
|
|
| 11,602 |
|
|
|
|
Premises and equipment, net | 10,441 |
|
|
|
|
| 10,577 |
|
|
|
|
Cash surrender value insurance | 10,630 |
|
|
|
|
| 10,128 |
|
|
|
|
Other assets | 13,352 |
|
|
|
|
| 6,159 |
|
|
|
|
Allowance for loan losses | (7,784) |
|
|
|
|
| (6,103) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total | $ 602,033 |
|
|
|
|
| $ 577,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & stockholders equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Savings and demand deposits | $ 121,725 |
| $ 1,007 |
| 1.11% |
| $ 103,563 |
| $ 1,084 |
| 1.40% |
Money market deposits | 94,240 |
| 831 |
| 1.18% |
| 72,174 |
| 724 |
| 1.34% |
Time deposits | 186,402 |
| 3,534 |
| 2.53% |
| 203,997 |
| 4,950 |
| 3.24% |
FHLB borrowings | 57,823 |
| 1,401 |
| 3.24% |
| 61,768 |
| 1,730 |
| 3.74% |
Other borrowings | 24,562 |
| 568 |
| 3.09% |
| 25,454 |
| 513 |
| 2.69% |
Senior subordinated notes | 7,000 |
| 425 |
| 8.12% |
| 3,283 |
| 199 |
| 8.10% |
Junior subordinated debentures | 7,732 |
| 334 |
| 5.78% |
| 7,732 |
| 340 |
| 5.88% |
|
|
|
|
|
|
|
|
|
|
|
|
Total | 499,484 |
| 8,100 |
| 2.17% |
| 477,971 |
| 9,540 |
| 2.67% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand deposits | 54,494 |
|
|
|
|
| 53,367 |
|
|
|
|
Other liabilities | 4,048 |
|
|
|
|
| 4,699 |
|
|
|
|
Stockholders equity | 44,007 |
|
|
|
|
| 41,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total | $ 602,033 |
|
|
|
|
| $ 577,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net interest income |
| $ 14,815 |
|
|
|
| $ 13,028 |
|
| ||
Rate spread |
|
| 3.24% |
|
|
| 2.86% | ||||
Net yield on interest-earning assets |
|
| 3.50% |
|
|
| 3.19% |
(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%.
-11-