PSB BANCSHARES, INC.

Unaudited Condensed Consolidated Statement of Financial Condition

As of September 30, 2018

(in thousands except share data)

September 30, 2018

Assets

Cash and due from banks

$

19,108

Federal funds sold

3,673

Cash and cash equivalents

22,781

Certificates of deposit in banks

3,449

Securities available-for-sale

101,644

Loans, net of unearned income

56,391

Less allowance for loan losses

(1,011

)

Net loans

55,380

Premises and equipment, net

1,541

Accrued interest receivable

865

Deferred income taxes

122

Other assets

599

Total assets

$

186,381

Liabilities and Shareholders' Equity

Noninterest-bearing deposits

$

107,312

Interest-bearing deposits

56,609

Total deposits

163,921

Accrued interest payable and other liabilities

974

Total liabilities

164,895

Stockholders' Equity:

Common stock

4

Additional paid in capital

6,718

Retained earnings

17,313

Accumulated other comprehensive loss

(1,749

)

Treasury stock

(800

)

Total stockholders' equity

21,486

Total liabilities and stockholders' equity

$

186,381

PSB BANCSHARES, INC.

Unaudited Condensed Consolidated Statement of Income

For the nine months ended September 30, 2018

(in thousands except per share data)

September 30, 2018

Interest income:

Loans, including fees

$

2,574

Taxable securities

1,171

Nontaxable securities

439

Federal funds sold

48

Other interest income

54

Total interest income

4,286

Interest expense:

Deposits

348

Total interest expense

348

Net interest income

3,938

Provision for loan losses

14

Net interest income after provision for loan losses

3,924

Noninterest income:

Service charges and fees

812

Other noninterest income

213

Total noninterest income

1,025

Noninterest expense:

Salaries and employee benefits

2,027

Occupancy expenses

169

Equipment rentals, depreciation, and maintenance

74

Telephone and communications

54

Advertising and business development

34

Data processing

391

Federal deposit insurance and other regulatory assessments

56

Legal and other professional services

453

Other operating expense

419

Total noninterest expense

3,677

Income before income taxes

1,272

Provision for income taxes

77

Net income

$

1,195

Basic net earnings per common share

$

0.32

Diluted net earnings per common share

$

0.32

Dividends per common share

$

0.16