PSB BANCSHARES, INC.

Unaudited Condensed Consolidated Statement of Financial Condition

As of September 30, 2017

(in thousands except share data)

September 30, 2017

Assets

Cash and due from banks

$

13,016

Federal funds sold

4,095

Cash and cash equivalents

17,111

Certificates of deposit in banks

3,192

Securities available-for-sale

100,241

Loans, net of unearned income

55,486

Less allowance for loan losses

(1,101

)

Net loans

54,385

Premises and equipment, net

1,648

Accrued interest receivable

737

Other assets

612

Total assets

$

177,926

Liabilities and Shareholders' Equity

Noninterest-bearing deposits

$

99,173

Interest-bearing deposits

54,965

Total deposits

154,138

Accrued interest payable and other liabilities

240

Total liabilities

154,378

Stockholders' Equity:

Common stock

4

Additional paid in capital

6,718

Retained earnings

17,283

Accumulated other comprehensive income

343

Treasury stock

(800

)

Total stockholders' equity

23,548

Total liabilities and stockholders' equity

$

177,926

PSB BANCSHARES, INC.

Unaudited Condensed Consolidated Statement of Income

For the nine months ended September 30, 2017

(in thousands except per share data)

September 30, 2017

Interest income:

Loans, including fees

$

2,458

Taxable securities

919

Nontaxable securities

469

Federal funds sold

28

Other interest income

48

Total interest income

3,922

Interest expense:

Deposits

249

Total interest expense

249

Net interest income

3,673

Provision for loan losses

14

Net interest income after provision for loan losses

3,659

Noninterest income:

Service charges and fees

751

Net gain on sale of investment securities

8

Other noninterest income

81

Total noninterest income

840

Noninterest expense:

Salaries and employee benefits

1,997

Occupancy expenses

171

Equipment rentals, depreciation, and maintenance

64

Telephone and communications

53

Advertising and business development

29

Data processing

378

Federal deposit insurance and other regulatory assessments

55

Legal and other professional services

204

Other operating expense

500

Total noninterest expense

3,451

Income before income taxes

1,048

Provision for income taxes

54

Net income

$

994

Basic net earnings per common share

$

0.27

Diluted net earnings per common share

$

0.27

Dividends per common share

$

0.12