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8-K - PSB FORM 8-K - PSB HOLDINGS INC /WI/ | psb8k.htm |
Exhibit 99.1
PSB Announces Record Annual Earnings of $3.04 per share and 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 December 2010 quarterly earnings of $.85 per share on net income of $1,334,000 compared to earnings of $.85 per share on net income of $1,331,000 during the most recent September 2010 quarter and $.31 per share on net income of $489,000 during the prior year December 2009 quarter.
President Knitt commented, December 2010 quarterly earnings matched the record high seen during September 2010 and reached a new record high for annual earnings with $3.04 per share on net income of $4,754,000 in 2010, an increase of 52% over earnings of $2.00 per share on net income of $3,116,000 during 2009. During 2010, higher net interest margin increased tax equivalent net interest income $2.1 million while income also benefited from a 45% decline in credit and foreclosure losses compared to 2009.
Knitt further added, Return on average stockholders equity was 10.59% during the year ended December 31, 2010 compared to 7.38% in 2009 and ranked very favorably compared to other banks similar in size across Wisconsin and the nation. Tangible net book value per share increased 10% during the year, reaching $29.85 per share at December 31, 2010. PSB continues to deliver value back to shareholders with the recent declaration of an increased semi-annual $.36 cash dividend per share. This payment continues a 46 year tradition of cash dividends to shareholders and 25 consecutive years of increased dividends declared.
Total assets also reached a new high of $621 million at December 31, 2010, compared to $600 million at September 30, 2010 and $607 million at December 31, 2009. Net loans receivable declined $5.8 million since December 31, 2009, but increased $1.3 million during the December 2010 quarter. President Knitt noted, We continue to see lower customer demand for credit by local businesses as they wait for better conditions for expansion, impacting our ability to grow loans. The majority of loan activity seen during the December 2010 quarter was from refinance of residential mortgages, some of which were sold on the secondary market, temporarily increasing mortgage banking income during the quarter.
Nonperforming loans and foreclosed assets remained at historically high levels, down 4% to $16.4 million at December 31, 2010 compared to $17.1 million at December 31, 2009. President Knitt indicated, During 2010, we restructured several performing loans which were experiencing difficulties related to seasonality of cash flows or other temporary items in an attempt to assist the borrowers to continue to perform. We continue to make steady progress on reducing our level of nonperforming assets. Our nonperforming assets were 2.64% of total assets at December 31, 2010, a level not unusual for the current industry and supported by a well capitalized equity position as defined by banking regulators.
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Balance Sheet Growth
Total assets were $621.1 million at December 31, 2010, and $600.2 million at September 30, 2010, compared to $606.9 million at December 31, 2009. During the recent December 2010 quarter, commercial related loans decreased $2.3 million following an $8.5 million decrease during the recent September 2010 quarter. However, residential mortgage loans increased $3.9 million during the December quarter, while cash and cash equivalents increased $19.6 million.
During the quarter, PSB acquired two large commercial deposit and repurchase agreement accounts which increased cash $12.2 million. In addition, year-end municipal property tax collections increased municipal deposits by $15.6 million during the quarter. The majority of these municipal balances and the new large commercial accounts are seasonal and expected to decline during the upcoming quarter. Cash inflows from deposits during the December 2010 quarter allowed PSB to repay $15.0 million in brokered deposits. At December 31, 2010, wholesale funding including brokered deposits, FHLB advances, and other borrowings declined to $155.8 million, or 25.1% of total assets, down from 27.3% of assets at September 30, 2010 and 27.0% of assets at December 31, 2009.
Asset Quality and Allowances for Loan Loss
PSBs provision for loan losses was $240,000 in the December 2010 quarter compared to $510,000 in the most recent September 2010 quarter and $1.6 million in the prior year December 2009 quarter. During year ended December 31, provision for loan losses was $1,795,000 in 2010 compared to $3,700,000 in 2009. For the year, the provision for loan losses decreased during 2010 compared to 2009 due to smaller average specific reserves required for newly identified problem loans. Representative of this trend, during the December 2010 quarter, five new problem loans with principal of $373,000 received specific loss reserves of $191,000 while during the December 2009 quarter five new problem loans with principal of $4,188,000 received specific loss reserves of $1,240,000.
Nonperforming loans increased $2.0 million, or 22%, during the quarter ended December 2010 to $11.4 million compared to $9.4 million at September 2010. However, $2.4 million of the quarterly change was due to the addition of restructured loans maintained on accrual status. The majority of the restructured principal ($1.9 million) was from two borrowers in response to their financial difficulty. The first significant restructured loan was changed from amortizing payments to interest only on $1,177,000 of principal, while the second restructured loan was changed from amortizing payments to interest only in addition to a .95% reduction in the interest rate on $754,000 of principal. Foreclosed assets decreased $787,000 to $5.0 million at December 31, 2010 compared to $5.8 million at September 30, 2010 primarily from sale of $560,000 of foreclosed properties for a net loss of $2,000 during the quarter. In addition, a large existing foreclosed property was partially written down $250,000 to current value based on recent market information and sale activity. Total nonperforming assets increased $1,248,000, or 8.2%, to $16.4 million at December 31, 2010 from $15.1 million at September 30, 2010, but decreased $685,000, or 4.0%, from $17.1 million at December 31, 2009.
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. Such conditions are seen in the level of problem borrowers with restructured loan terms. 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 light of these conditions, PSB expects to see an increase in borrowers requiring restructured loan terms. In addition, foreclosed property may increase during the next several quarters as PSB works through ongoing collection and foreclosure actions. A continued slow
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local economy impacts the value of collateral and foreclosed assets, potentially increasing losses on foreclosed borrowers and properties during the coming quarters.
Nonaccrual loans and restructured loans maintained on accrual status remain classified as nonperforming loans until the uncertainty surrounding the credit is eliminated. In general, uncertainty surrounding the credit is eliminated when the borrower has displayed a history of regular loan payments using a market interest rate that is expected to continue as if a typical performing loan. 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.
Total nonperforming assets as a percentage of total assets was 2.64% at December 31, 2010 compared to 2.52% at September 30, 2010 and 2.81% at December 31, 2009. Excluding restructured loans maintained on accrual status, total nonperforming assets would have been 2.26% at December 31, 2010 compared to 2.81% at December 30, 2009. Total nonperforming assets as a percentage of total tangible common equity including the allowance for loan losses was 30.61%, 28.57%, and 35.04% at December 31, 2010, September 30, 2010, and December 31, 2009, respectively. For the purpose of this measurement, tangible common equity is equal to total common stockholders equity less mortgage servicing right assets.
Nonperforming assets are shown in the following table.
Non-Performing Assets as of | December 31, | |
(dollars in thousands) | 2010 | 2009 |
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Nonaccrual loans (excluding restructured loans) | $ 7,127 | $11,829 |
Nonaccrual restructured loans | 1,912 | $ 1,469 |
Restructured loans not on nonaccrual | 2,383 | |
Accruing loans past due 90 days or more | | |
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Total nonperforming loans | 11,422 | 13,298 |
Foreclosed assets | 4,967 | 3,776 |
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Total nonperforming assets | $16,389 | $17,074 |
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Nonperforming loans as a % of gross loans | 2.60% | 2.99% |
Total nonperforming assets as a % of total assets | 2.64% | 2.81% |
At December 31, 2010, PSBs internal credit grading system identified 24 separate problem or restructured loan relationships totaling $4.8 million against which $2.0 million in specific loan loss reserves were allocated. At September 30, 2010, 22 loan relationships were identified totaling $3.9 million against which $2.0 million in specific loan loss reserves were allocated while at December 31, 2009, 22 loan relationships totaling $10.8 million were identified against which $2.5 million in specific loan loss reserves were allocated.
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At December 31, 2010, all nonperforming assets aggregating $500,000 or more measured by gross principal outstanding (before specific loan reserves) represented 46% of all nonperforming assets compared to 42% of nonperforming assets at September 30, 2010. Large nonperforming assets are summarized in the following table. In the table, loans presented as Accrual TDR represent troubled debt restructured loans maintained on accrual status.
Significant Nonperforming Assets at December 31, 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 real estate | Foreclosed | 1,450 |
| n/a |
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Multi-family rental apartment units and vacant land | Accrual TDR | 1,177 |
| |
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Building supply inventory and accounts receivable | Nonaccrual | 823 |
| 700 |
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Out of area condo land development participation | Foreclosed | 792 |
| n/a |
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Owner occupied cabinetry contractor real estate | Accrual TDR | 754 |
| 75 |
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Owner occupied restaurant and business assets | Nonaccrual | 706 |
| 100 |
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Total listed assets |
| $ 7,469 |
| $ 875 |
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Total bank wide nonperforming assets |
| $16,389 |
| $1,989 |
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Listed assets as a % of total nonperforming assets |
| 46% |
| 44% |
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Annualized net loan charge-offs were .26% during the December 2010 quarter compared to .16% during the September 2010 quarter and .72% during the December 2009 quarter. Net loan charge-offs were .33% and .37% during the years ended December 31, 2010, and 2009, respectively. At December 31, 2010, the allowance for loan losses was $7,960,000 or 1.81% of total loans (70% of nonperforming loans) compared to $8,001,000, or 1.82% of total loans (85% of nonperforming loans) at September 30, 2010, and $7,611,000, or 1.71% of total loans (57% of nonperforming loans) at December 31, 2009.
Capital and Liquidity
During the year ended December 31, 2010, stockholders equity increased approximately $4.4 million from retained net income of $3.6 million, net of dividends of $1.1 million declared, and an increase in net unrealized gains on securities available for sale of $767,000 after income tax effects. Net book value per share at December 31, 2010 was $29.85 compared to $27.11 at December 31, 2009, an increase of 10.1%. Average common stockholders equity, excluding unrealized security gains and other comprehensive income was 7.09% of average assets during the year ended December 31, 2010, and 6.94% during 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 December 31, 2010.
PSB regularly maintains access to wholesale markets to fund loan originations and manage local depositor needs. Unused liquidity sources improved during the December 2010 quarter as deposit and repurchase agreement growth was used to pay down brokered deposits by $15.0 million. However, much of the deposit growth seen during the December 2010 quarter is considered seasonal and is expected to run-off during early 2011. At December 31, 2010, PSB carried $31 million in overnight federal funds sold available to fund deposit outflows. At December 31, 2010, unused (but available) wholesale funding were approximately $211 million, or 34% 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
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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 45% of unused but available liquidity at December 31, 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 $5,096,000 during the December 2010 quarter compared to $5,220,000 in the September 2010 quarter, a decrease of $124,000, or 2.4%, as the September 2010 quarter include a $100,000 customer prepayment penalty in connection with a debt refinancing. However, December 2010 quarterly tax adjusted net interest income was $316,000, or 6.6%, greater than the $4,780,000 seen during the December 2009 quarter. For all of 2010, tax adjusted net interest income was $19.9 million compared to $17.8 million in 2009, an increase of $2.1 million, or 11.8%. The increase is due to significantly greater net interest margin, which was 3.51% during 2010 compared to 3.25% during 2009. Increased net interest margin accounted for 77% of the increase in tax adjusted net interest income, while earning assets growth accounted for 23% of the increase. 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.
Reinvestment yields for investment security cash flows remain very low and the December 2010 quarterly securities yield was 4.19%, down from 4.41% during the September 2010 quarter. The decline in securities yields is expected to continue into 2011 as securities available for reinvestment provide yields generally less than 2.00%. Securities yields were 4.51% and 5.04% during the years ended December 31, 2010 and 2009, respectively. 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 3.51% seen during all of 2010.
Noninterest and Fee Income
Total noninterest income for the quarter ended December 31, 2010 was $1,512,000, compared to $1,563,000 earned during the December 2009 quarter, a decrease of $51,000, or 3.3%. The decrease was due to a large $521,000 nonrecurring gain on sale of securities in the December 2009 quarter. Absent the security gain, noninterest income during the December 2010 quarter rose $470,000, or 45% compared to 2009. The 2010 increase was due to a $326,000 increase in mortgage banking income, $82,000 increase in deposit service fees, and a $47,000 increase in investment and insurance sales commissions. Mortgage sale gains were from heightened loan refinancing activity due to an early period decline in long-term residential mortgage rates. Later in the December 2010 quarter, long-term interest rates rose, decreasing interest in mortgage refinance activity. Mortgage banking income is expected to decline during the March 2011 quarter compared to the most recent December 2010 quarter.
Increased service fees seen during the current quarter compared to the December 2009 quarter were due to higher customer overdraft activity. 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. These changes have reduced PSBs overdraft fee income, which declined $18,000 in the December 2010 quarter (compared to September 2010) and declined $64,000 during the September 2010 quarter (compared to June 2010), or 18% cumulatively
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compared to the June 2010 quarter. PSB expects potential further declines in overdraft fee income during the March 2011 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 year ended December 31, card interchange revenue was $731,000 and $614,000 during 2010 and 2009, respectively. Recent proposals regarding limits on debit card income by the Federal Reserve have the potential to significantly reduce the current level of interchange income, lowering net income.
For the year ended December 31, 2010, total noninterest income declined $213,000, or 3.8%, to $5,363,000 compared to $5,576,000 during 2009. Excluding nonrecurring net gains (losses) on security sales, 2010 noninterest income increased $328,000, or 6.5% compared to 2009. Although 2010 mortgage banking income declined $378,000 as more borrowers refinanced their residential mortgages when rates fell significantly during 2009 compared to 2010, several other types of income experienced significant increases. Service charge income increased $338,000, or 23.3%, from higher overdraft income charges, and investment and insurance sales commissions increased $169,000, or 36.4%, from higher gross sales activity. Prior to new regulation which lowered overdraft activity following August 2010, the bank had rolled out an updated courtesy overdraft product early in 2010 which increased year over year overdraft income despite the regulatory change. As previously noted, interchange income from credit and debit cards increased $117,000, or 19.1% during 2010 compared to 2009.
Many of the increases in 2010 were in areas expected to be impacted by continued regulatory changes including overdraft fees and card interchange income. In addition, residential mortgage refinance activity is expected to slow significantly as long-term mortgages have risen to levels higher than rates already in the serviced loan portfolio from previous customer refinancing activity. PSB is unable to estimate the timing and extent of these changes, but expects total noninterest income will decline during 2011 compared to 2010.
Operating Expenses
Noninterest expenses totaled $4,305,000 during the December 2010 quarter compared to $4,070,000 during the December 2009 quarter, an increase of $235,000, or 5.8%. An increase in salaries and employee benefits of $397,000 and debit card fraud losses of $110,000 during the quarter were offset by a $412,000 decrease in loss on foreclosed assets.
During the December 2009 quarter, foreclosure losses associated with the public auction and further write-downs to market value of a northern Wisconsin recreational property development increased loss on foreclosed assets and reduced the level of year-end incentives earned by employees during 2009, temporarily reducing salaries and benefits expense during the December 2009 quarter. While current period employee salaries and benefits increased over the December 2009 quarter, they remained consistent with the most recent September 2010 quarter of $2,233,000 compared to $2,124,000 in the December 2010 quarter. In addition to higher quarterly employee expenses compared to December 2009, other noninterest expense increased $110,000 (net of $50,000 insurance reimbursement) during the December 2010 quarter from debit card fraud losses as PSB was subject to a concentrated fraud event during the quarter.
During the year ended December 31, 2010, total noninterest expenses were $15.9 million compared to $14.8 million in 2009, an increase of 1,096,000, or 7.4%. The majority of the increase was in the form of higher salaries and employee benefits which increased $1,015,000, or 13.6% during 2010. Base wages represented $215,000 of the increase, growing 3.6% over 2009 with increased overtime pay representing $59,000 of the increase related to the June 2010 quarter core processing system conversion. Excluding overtime pay, base wages increased 2.6% during 2010. Other factors included fewer deferred direct loan origination costs of $190,000, increased health and dental insurance plan expense of $59,000, and higher
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year-end incentive and profit sharing plan costs of $380,000, up 78%, based on exceeding 2010 net income targets.
FDIC insurance expense declined $204,000, or 20.6% during 2010 compared to 2009 due to the prior year including a special FDIC insurance assessment totaling $264,000. Prior to the special assessment, 2010 FDIC insurance expense increased $60,000, or 8.3%. Offsetting the 2010 decline in FDIC expense was an increase in data processing and other office operations expense of $217,000, or 22.7%, due to a change in core processing computer system during June 2010 from an internally maintained system to an outsourced system. Following the June 2010 conversion date, the system vendor provided a contractual reduction in monthly service fees that will expire during 2011. Following expiration of the reduction period, vendor servicing fees will increase significantly. The new system, while increasing data processing costs, is expected to provide significant operating efficiencies and capacity for customer and product growth compared to the prior system maintained in house since 1997.
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 using a tax rate of 34%.
(3)Due to rounding, cumulative quarterly per share performance may not equal annual per share totals.
(4)Tangible stockholders equity excludes intangible assets and any preferred stock capital elements.
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PSB Holdings, Inc. |
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Consolidated Statements of Income |
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| Three Months Ended |
| Year Ended | ||||||
| December 31, |
| December 31, | ||||||
(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 | $ 6,360 |
| $ 6,392 |
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| $ 25,419 |
| $ 24,903 |
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Securities: |
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Taxable | 682 |
| 719 |
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| 2,946 |
| 3,117 |
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Tax-exempt | 305 |
| 355 |
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| 1,265 |
| 1,375 |
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Other interest and dividends | 19 |
| 7 |
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| 35 |
| 12 |
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Total interest and dividend income | 7,366 |
| 7,473 |
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| 29,665 |
| 29,407 |
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Interest expense: |
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Deposits | 1,602 |
| 1,943 |
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| 6,974 |
| 8,701 |
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FHLB advances | 463 |
| 497 |
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| 1,864 |
| 2,227 |
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Other borrowings | 173 |
| 220 |
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| 741 |
| 733 |
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Senior subordinated notes | 142 |
| 142 |
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| 567 |
| 341 |
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Junior subordinated debentures | 86 |
| 114 |
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| 420 |
| 454 |
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Total interest expense | 2,466 |
| 2,916 |
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| 10,566 |
| 12,456 |
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Net interest income | 4,900 |
| 4,557 |
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| 19,099 |
| 16,951 |
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Provision for loan losses | 240 |
| 1,600 |
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| 1,795 |
| 3,700 |
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Net interest income after provision for loan losses | 4,660 |
| 2,957 |
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| 17,304 |
| 13,251 |
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Noninterest income: |
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Service fees | 454 |
| 372 |
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| 1,786 |
| 1,448 |
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Mortgage banking | 551 |
| 225 |
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| 1,472 |
| 1,850 |
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Gain on sale of loan | |
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| 122 |
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Investment and insurance sales commissions | 151 |
| 104 |
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| 633 |
| 464 |
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Net gain (loss) on sale and write-down of securities | |
| 521 |
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| (20) |
| 521 |
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Gain (loss) on disposal of premises and equipment | 1 |
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| (6) |
| (98) |
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Increase in cash surrender value of life insurance | 103 |
| 105 |
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| 410 |
| 411 |
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Other noninterest income | 252 |
| 236 |
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| 1,088 |
| 858 |
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Total noninterest income | 1,512 |
| 1,563 |
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| 5,363 |
| 5,576 |
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Noninterest expense: |
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Salaries and employee benefits | 2,124 |
| 1,727 |
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| 8,467 |
| 7,452 |
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Occupancy and facilities | 418 |
| 422 |
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| 1,863 |
| 1,822 |
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Loss on foreclosed assets | 544 |
| 956 |
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| 849 |
| 1,130 |
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Data processing and other office operations | 266 |
| 234 |
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| 1,174 |
| 957 |
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Advertising and promotion | 103 |
| 89 |
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| 355 |
| 355 |
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FDIC insurance premiums | 192 |
| 185 |
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| 782 |
| 986 |
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Other noninterest expenses | 658 |
| 457 |
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| 2,435 |
| 2,127 |
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Total noninterest expense | 4,305 |
| 4,070 |
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| 15,925 |
| 14,829 |
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Income before provision (credit) for income taxes | 1,867 |
| 450 |
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| 6,742 |
| 3,998 |
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Provision (credit) for income taxes | 533 |
| (39) |
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| 1,988 |
| 882 |
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Net income | $ 1,334 |
| $ 489 |
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| $ 4,754 |
| $ 3,116 |
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Basic earnings per share | $ 0.85 |
| $ 0.31 |
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| $ 3.04 |
| $ 2.00 |
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Diluted earnings per share | $ 0.85 |
| $ 0.31 |
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| $ 3.04 |
| $ 2.00 |
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PSB Holdings, Inc. |
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Consolidated Balance Sheets |
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December 31, 2010 unaudited, December 31, 2009 derived from audited financial statements | ||||
| December 31, | December 31, | ||
(dollars in thousands, except per share data unaudited) | 2010 | 2009 | ||
Assets |
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Cash and due from banks | $ 9,601 |
| $ 15,010 |
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Interest-bearing deposits and money market funds | 227 |
| 731 |
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Federal Funds sold | 30,503 |
| 10,596 |
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Cash and cash equivalents | 40,331 |
| 26,337 |
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Securities available for sale (at fair value) | 55,273 |
| 106,185 |
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Securities held to maturity (fair value of $51,662) | 53,106 |
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Other investments | 2,484 |
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Loans held for sale | 436 |
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Loans receivable, net of allowance for loan losses | 431,801 |
| 437,633 |
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Accrued interest receivable | 2,238 |
| 2,142 |
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Foreclosed assets | 4,967 |
| 3,776 |
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Premises and equipment, net | 10,464 |
| 10,283 |
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Mortgage servicing rights, net | 1,100 |
| 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 | 10,899 |
| 10,489 |
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Other assets | 4,744 |
| 5,612 |
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|
|
TOTAL ASSETS | $ 621,093 |
| $ 606,854 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits | $ 57,932 |
| $ 60,003 |
|
Interest-bearing deposits | 407,325 |
| 398,728 |
|
|
|
|
|
|
Total deposits | 465,257 |
| 458,731 |
|
|
|
|
|
|
Federal Home Loan Bank advances | 57,434 |
| 58,159 |
|
Other borrowings | 31,511 |
| 28,410 |
|
Senior subordinated notes | 7,000 |
| 7,000 |
|
Junior subordinated debentures | 7,732 |
| 7,732 |
|
Accrued expenses and other liabilities | 5,469 |
| 4,552 |
|
|
|
|
|
|
Total liabilities | 574,403 |
| 564,584 |
|
|
|
|
|
|
Stockholders equity |
|
|
|
|
|
|
|
|
|
Preferred stock no par value: Authorized 30,000 shares | |
| |
|
Common stock no par value with a stated value of $1 per share: |
|
|
|
|
Authorized 3,000,000 shares |
|
|
|
|
Issued 1,751,431 shares; Outstanding 1,564,297 shares | 1,751 |
|
|
|
Issued 1,751,431 shares; Outstanding 1,559,314 shares |
|
| 1,751 |
|
Additional paid-in capital | 5,506 |
| 5,599 |
|
Retained earnings | 41,974 |
| 38,348 |
|
Accumulated other comprehensive income | 2,528 |
| 1,776 |
|
Treasury stock, at cost 187,134 and 192,117 shares, respectively | (5,069) |
| (5,204) |
|
|
|
|
|
|
Total stockholders equity | 46,690 |
| 42,270 |
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY | $ 621,093 |
| $ 606,854 |
|
-10-
PSB Holdings, Inc. |
|
|
|
|
|
|
| ||||
Average Balances and Interest Rates |
|
|
|
|
|
|
| ||||
Quarter Ended December 31, |
|
|
|
|
|
|
| ||||
|
| 2010 |
|
|
| 2009 |
| ||||
| Avg. Bal. | Interest | Yield/Rate |
| Avg. Bal. | Interest | Yield/Rate | ||||
Assets |
|
|
|
|
|
|
| ||||
Interest-earning assets: |
|
|
|
|
|
|
| ||||
Loans(1)(2) | $438,997 |
| $ 6,399 |
| 5.78% |
| $440,199 |
| $ 6,432 |
| 5.80% |
Taxable securities | 73,595 |
| 682 |
| 3.68% |
| 65,423 |
| 719 |
| 4.36% |
Tax-exempt securities(2) | 34,782 |
| 462 |
| 5.27% |
| 37,453 |
| 538 |
| 5.70% |
FHLB stock | 3,250 |
| |
| 0.00% |
| 3,250 |
| |
| 0.00% |
Other | 22,717 |
| 19 |
| 0.33% |
| 7,176 |
| 7 |
| 0.39% |
|
|
|
|
|
|
|
|
|
|
|
|
Total(2) | 573,341 |
| 7,562 |
| 5.23% |
| 553,501 |
| 7,696 |
| 5.52% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks | 10,738 |
|
|
|
|
| 10,161 |
|
|
|
|
Premises and equipment, net | 10,517 |
|
|
|
|
| 10,216 |
|
|
|
|
Cash surrender value insurance | 10,836 |
|
|
|
|
| 10,429 |
|
|
|
|
Other assets | 13,219 |
|
|
|
|
| 12,036 |
|
|
|
|
Allowance for loan losses | (8,074) |
|
|
|
|
| (6,987) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total | $610,577 |
|
|
|
|
| $589,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & stockholders equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and demand deposits | $117,085 |
| $ 303 |
| 1.03% |
| $ 110,556 |
| $ 322 |
| 1.16% |
Money market deposits | 98,985 |
| 252 |
| 1.01% |
| 83,546 |
| 263 |
| 1.25% |
Time deposits | 178,805 |
| 1,047 |
| 2.32% |
| 187,600 |
| 1,358 |
| 2.87% |
FHLB borrowings | 57,434 |
| 463 |
| 3.20% |
| 58,134 |
| 497 |
| 3.39% |
Other borrowings | 31,283 |
| 173 |
| 2.19% |
| 28,142 |
| 220 |
| 3.10% |
Senior subordinated notes | 7,000 |
| 142 |
| 8.05% |
| 7,000 |
| 142 |
| 8.05% |
Junior subordinated debentures | 7,732 |
| 86 |
| 4.41% |
| 7,732 |
| 114 |
| 5.85% |
|
|
|
|
|
|
|
|
|
|
|
|
Total | 498,324 |
| 2,466 |
| 1.96% |
| 482,710 |
| 2,916 |
| 2.40% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand deposits | 59,860 |
|
|
|
|
| 58,806 |
|
|
|
|
Other liabilities | 5,174 |
|
|
|
|
| 4,607 |
|
|
|
|
Stockholders equity | 47,219 |
|
|
|
|
| 43,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total | $610,577 |
|
|
|
|
| $ 589,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net interest income |
| $ 5,096 |
|
|
|
| $ 4,780 |
|
| ||
Rate spread |
|
| 3.27% |
|
|
| 3.12% | ||||
Net yield on interest-earning assets |
|
| 3.53% |
|
|
| 3.43% |
(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-
PSB Holdings, Inc. |
|
|
|
|
|
|
| ||||
Average Balances and Interest Rates |
|
|
|
|
|
| |||||
Year Ended December 31, |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
| ||||
|
| 2010 |
|
|
| 2009 |
| ||||
| Avg. Bal. | Interest | Yield/Rate |
| Avg. Bal. | Interest | Yield/Rate | ||||
Assets |
|
|
|
|
|
|
| ||||
Interest-earning assets: |
|
|
|
|
|
|
| ||||
Loans(1)(2) | $443,293 |
| $ 25,579 |
| 5.77% |
| $435,264 |
| $ 25,052 |
| 5.76% |
Taxable securities | 73,414 |
| 2,946 |
| 4.01% |
| 66,211 |
| 3,117 |
| 4.71% |
Tax-exempt securities(2) | 34,344 |
| 1,917 |
| 5.58% |
| 36,995 |
| 2,083 |
| 5.63% |
FHLB stock | 3,250 |
| |
| 0.00% |
| 3,250 |
| |
| 0.00% |
Other | 13,666 |
| 35 |
| 0.26% |
| 5,754 |
| 12 |
| 0.21% |
|
|
|
|
|
|
|
|
|
|
|
|
Total(2) | 567,967 |
| 30,477 |
| 5.37% |
| 547,474 |
| 30,264 |
| 5.53% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks | 9,600 |
|
|
|
|
| 11,239 |
|
|
|
|
Premises and equipment, net | 10,460 |
|
|
|
|
| 10,486 |
|
|
|
|
Cash surrender value insurance | 10,682 |
|
|
|
|
| 10,204 |
|
|
|
|
Other assets | 13,305 |
|
|
|
|
| 7,668 |
|
|
|
|
Allowance for loan losses | (7,857) |
|
|
|
|
| (6,325) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total | $604,157 |
|
|
|
|
| $580,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & stockholders equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Savings and demand deposits | $120,556 |
| $ 1,310 |
| 1.09% |
| $105,325 |
| $ 1,406 |
| 1.33% |
Money market deposits | 95,329 |
| 1,083 |
| 1.14% |
| 75,039 |
| 987 |
| 1.32% |
Time deposits | 184,487 |
| 4,581 |
| 2.48% |
| 199,864 |
| 6,308 |
| 3.16% |
FHLB borrowings | 57,725 |
| 1,864 |
| 3.23% |
| 60,852 |
| 2,227 |
| 3.66% |
Other borrowings | 26,256 |
| 741 |
| 2.82% |
| 26,131 |
| 733 |
| 2.81% |
Senior subordinated notes | 7,000 |
| 567 |
| 8.10% |
| 4,213 |
| 341 |
| 8.09% |
Junior subordinated debentures | 7,732 |
| 420 |
| 5.43% |
| 7,732 |
| 454 |
| 5.87% |
|
|
|
|
|
|
|
|
|
|
|
|
Total | 499,085 |
| 10,566 |
| 2.12% |
| 479,156 |
| 12,456 |
| 2.60% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand deposits | 55,848 |
|
|
|
|
| 54,738 |
|
|
|
|
Other liabilities | 4,340 |
|
|
|
|
| 4,652 |
|
|
|
|
Stockholders equity | 44,884 |
|
|
|
|
| 42,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total | $604,157 |
|
|
|
|
| $580,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net interest income |
| $ 19,911 |
|
|
|
| $ 17,808 |
|
| ||
Rate spread |
|
| 3.25% |
|
|
| 2.93% | ||||
Net yield on interest-earning assets |
|
| 3.51% |
|
|
| 3.25% |
(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%.
-12-