PSB Holdings, Inc. Reports Earnings Of $0.73 Per Share For Q4 2024; Twelve Month 2024 Earnings Up 10% To $2.37 Per Share

(MENAFN- GlobeNewsWire - Nasdaq) WAUSAU, Wis., Jan. 27, 2025 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ) , the holding company for Peoples State bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported fourth quarter earnings ending December 31, 2024 of $0.73 per common share on net income of $3.0 million, compared to $0.69 per common share on net income of $2.9 million during the third quarter ending September 30, 2024, and $0.55 per common share on net income of $2.3 million during the fourth quarter ending December 31, 2023. For the fiscal year ended December 31, 2024, PSB reported earnings of $2.37 per common share on net income of $9.8 million compared to $2.16 per common share on earnings of $9.1 million for the fiscal year ended December 31, 2023.

PSB's fourth quarter 2024 operating results reflected the following changes from the third quarter of 2024: (1) higher net interest income supported by a net interest margin increase of six basis points; (2) lower non-interest income due primarily to a loss on the sale of securities; (3) slightly lower non-interest expenses due to lower salaries and employee benefit expenses; and (4) loan growth of 2% during the quarter.

“We are pleased with our results for the fourth quarter and fiscal 2024. We continue to maintain strong asset quality and controlled expenses, and expect to see continued expansion in our net interest margin as loan products continue to reset to higher yields and funding costs stabilize or decline. Additionally, we expect to see stronger loan growth in fiscal 2025. We are focused on delivering strong returns to shareholders through capital growth, payment of dividends and supporting our stock price through stock repurchases, when economically appropriate,” stated Scott Cattanach, President and CEO.

December 31, 2024, Highlights:

• Net interest income increased to $10.4 million for the quarter ended December 31, 2024, from $9.9 million for the quarter ended September 30, 2024. Asset and loan yields increased while funding costs declined slightly.
  
• Noninterest income decreased $566,000 to $1.3 million for the quarter ended December 31, 2024, compared to $1.8 million the prior quarter due primarily to a loss on the sale of securities.
  
• Noninterest expenses decreased to $8.0 million during the quarter ended December 31, 2024 from $8.2 million for the quarter ended September 30, 2024, reflecting lower salary and benefit expenses.
  
• Loans increased $20.2 million, or 2% in the fourth quarter ended December 31, 2024, to $1.08 billion largely due to new commercial real estate and construction and development loans. Allowance for credit losses was 1.13% of gross loans.
  
• Non-performing assets remained unchanged at $10.4 million, or 0.71% of total assets at December 31, 2024 compared to the previous quarter.
  
• Total deposits increased slightly to $1.15 billion at December 31, 2024 from $1.14 billion at September 30, 2024, with the increase largely consisting of interest-bearing demand and savings deposits.
  
• Return on average tangible common equity was 11.07% for the quarter ended December 31, 2024, compared to 10.96% the prior quarter and 9.64% in the year ago quarter.
  
• Tangible book value per common share was up 9.0% over the past year to $25.98 at December 31, 2024, compared to $23.84 at December 31, 2023. Additionally, PSB paid dividends totaling $0.64 per share during 2024, up 6.7% over the prior year.
  
• On January 21, 2025, the Bank acquired Larson Financial Group, LLC, a financial advisory company based in Wausau, WI.
  

Balance Sheet and Asset Quality Review

Total assets decreased $10.0 million during the fourth quarter to $1.47 billion at December 31, 2024, compared to September 30, 2024. Cash and cash equivalents decreased $46.6 million to $40.5 million at December 31, 2024 from $87.1 million at September 30, 2024 as funds were used to originate new loans and pay down FHLB advances. Cash and cash equivalents increased $12.7 million from one year earlier. Investment securities available for sale increased $14.2 million to $189.1 million at December 31, 2024, from $174.9 million one quarter earlier. Total collateralized liquidity available to meet cash demands was approximately $349 million at December 31, 2024, with an additional $354 million that could be raised in a short time frame from the brokered CDs market.

Total loans receivable increased $20.2 million to $1.08 billion at December 31, 2024, compared to one quarter earlier, due primarily to increased commercial non-real estate, commercial real estate and construction lending. Commercial non-real estate loans increased $5.1 million to $144.2 million at December 31, 2024, from $139.0 million one quarter earlier. Commercial real estate loans increased $10.1 million to $551.6 million at December 31, 2024 and construction and development lending increased $18.4 million to $79.4 million at December 31, 2024, compared to one quarter earlier. Offsetting gross loan growth, loans in process of disbursement increased $10.0 million to $27.8 million as new construction and development loans have not been fully funded. Residential real estate loans decreased $3.9 million from the prior quarter to $337.5 million. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 56.5% of gross loans, followed by residential real estate loans at 30.2% of gross loans, commercial non-real estate loans at 12.9% and consumer loans at 0.4%.

The allowance for credit losses decreased slightly to 1.13% of gross loans at December 31, 2024, from 1.18% the prior quarter. Annualized net charge-offs to average loans were 0.02% for the quarter ended December 31, 2024. Non-performing assets remained at 0.71% of total assets at December 31, 2024 and totaled $10.4 million. Approximately 71% of the non-performing assets consisted of three loan relationships. For the eighth consecutive quarter, the Bank did not own any foreclosed real estate.

Total deposits increased $8.2 million to $1.15 billion at December 31, 2024, from $1.14 billion at September 30, 2024. The increase in deposits reflects a $12.9 million increase in interest-bearing demand and savings deposits and a $3.3 million increase in retail and local time deposits greater than $250,000, offset by a $1.5 million decrease in money market deposits, a $5.6 million decrease in non-interest bearing deposits and a $0.9 million decrease in retail and local time deposits less than $250,000.

At December 31, 2024, non-interest bearing demand deposits decreased to 22.6% of total deposits from 23.3% the prior quarter, while interest-bearing demand and savings deposits increased to 29.4% of deposits, compared to 28.4% at September 30, 2024. Uninsured and uncollateralized deposits decreased to 21.6% of total deposits at December 31, 2024, from 21.7% of total deposits at September 30, 2024.

FHLB advances decreased $19.0 million to $162.3 million at December 31, 2024, compared to $181.3 million at September 30, 2024.

Tangible stockholder equity as a percent of total tangible assets was 7.76% at December 31, 2024, compared to 7.85% at September 30, 2024, and 7.49% at December 31, 2023.

Tangible net book value per common share increased $2.14 to $25.98, at December 31, 2024, compared to $23.84 one year earlier, an increase of 9.0% after dividends of $0.64 were paid to shareholders. Relative to the prior quarter's tangible book value per common share of $26.41, tangible net book value per common share decreased primarily due to a fair market value decrease in the investment portfolios and payment of dividends. The accumulated other comprehensive loss on the investment portfolio was $19.3 million at December 31, 2024, compared to $15.8 million one quarter earlier.

Operations Review

Net interest income increased to $10.4 million (on a net margin of 2.96%) for the fourth quarter of 2024, from $9.9 million (on a net margin of 2.90%) for the third quarter of 2024, and $9.6 million (on a net margin of 2.88%) for the fourth quarter of 2023. Earning asset yields remained flat at 5.29% during the fourth quarter of 2024, while interest bearing deposit and borrowing costs decreased seven basis points to 3.06% compared to 3.13% during the third quarter of 2024. Relative to one year earlier, earning asset yields were up 30 basis points while interest bearing deposit and borrowing costs increased 27 basis points.

The increase in earning asset yields was primarily due to higher yields on loan originations and renewals. Loan yields increased during the fourth quarter of 2024 to 5.80% from 5.78% for the third quarter of 2024. Taxable security yields were 3.16% for the quarter ended December 31, 2024, compared to 3.01% for the quarter ended September 30, 2024, while tax-exempt security yields were flat at 3.31% for the quarter ended December 31, 2024. The increase in taxable security yields reflect the rise in interest rates and security restructuring activity from security sales.

The cost of all deposits declined to 2.08% for the quarter ended December 31, 2024, compared to 2.11% the prior quarter, while the overall cost of funds decreased seven basis points to 3.06% from 3.13% during the same time period. Deposit costs for all deposit categories decreased during the fourth quarter with time deposits decreasing two basis points to 4.02%, money market deposits decreasing 13 basis points to 2.56% and savings and demand deposits decreasing two basis points to 2.56%. FHLB advances also declined four basis points to 4.40% for the quarter ended December 31, 2024.

Total noninterest income decreased during the fourth quarter of 2024 to $1.28 million, from $1.84 million for the third quarter of 2024 due primarily to a net loss on sale of securities. Mortgage banking income decreased slightly to $414,000 in the fourth quarter from $433,000 the prior quarter while various decreases in nominal revenue sources accounted for the remaining decline in noninterest income. At December 31, 2024, the Bank serviced $373.5 million in secondary market residential mortgage loans for others which provide fee income.

Noninterest expenses decreased $149,000 to $8.0 million for the fourth quarter of 2024, compared to $8.2 million for the third quarter of 2024 and increased $644,000 from $7.4 million for the fourth quarter of 2023. Relative to one year earlier, salary and benefit cost increased $447,000, or 10.5% to $4.7 million for the quarter ended December 31, 2024, compared to $4.2 million for the fourth quarter ended December 31, 2023.

Taxes decreased $69,000 during the fourth quarter to $524,000, from $593,000 one quarter earlier. The effective tax rate for the quarter ended December 31, 2024, was 14.4% compared to 16.6% for the third quarter ended September 30, 2024, and 26.7% for the fourth quarter ended December 31, 2023.

About PSB Holdings, Inc.

PSB Holdings, Inc. is the parent company of Peoples State Bank. Peoples is a community bank headquartered in Wausau, Wisconsin, serving northcentral and southeastern Wisconsin from twelve full-service banking locations in Marathon, Oneida, Vilas, Portage, Milwaukee and Waukesha counties and a loan production office in Dane County. Peoples also provides investment and insurance products, along with retirement planning services, through Peoples Wealth Management, a division of Peoples. PSB Holdings, Inc. is traded under the stock symbol PSBQ on the OTCQX Market. More information about PSB, its management, and its financial performance may be found at

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about PSB's business based, in part, on assumptions made by management and include, without limitation, statements with respect to the potential growth of PSB, its future profits, expected stock repurchase levels, future dividend rates, future interest rates, and the adequacy of its capital position. Forward-looking statements can be affected by known and unknown risks, uncertainties, and other factors, including, but not limited to, strength of the economy, the effects of government policies, including interest rate policies, risks associated with the execution of PSB's vision and growth strategy, including with respect to current and future M&A activity, and risks associated with global economic instability. The forward-looking statements in this press release speak only as of the date on which they are made and PSB does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

PSB Holdings, Inc.
Consolidated Balance Sheets
December 31, September 30, June 30, and March 31, 2024, unaudited, December 31, 2023 derived from audited financial statements
	Dec. 31,	Sep. 30,	Jun. 30,	Mar. 31,	Dec. 31,
(dollars in thousands, except per share data)		2024			2024			2024			2024			2023
Assets
Cash and due from banks	$	21,414		$	23,554		$	16,475		$	13,340		$	20,887
Interest-bearing deposits		3,724			5,126			251			105			1,431
Federal funds sold		15,360			58,434			69,249			2,439			5,462
Cash and cash equivalents		40,498			87,114			85,975			15,884			27,780
Securities available for sale (at fair value)		189,086			174,911			165,177			165,566			164,024
Securities held to maturity (fair values of $79,654, $82,389, $79,993, $81,234 and
$82,514 respectively)		86,748			86,847			86,825			87,104			87,081
Equity securities		2,782			1,752			1,661			1,474			1,474
Loans held for sale		217			-			2,268			865			230
Loans receivable, net (allowance for credit losses of $12,342, $12,598, $12,597,
$12,494 and $12,302 respectively)		1,078,204			1,057,974			1,074,844			1,081,394			1,078,475
Accrued interest receivable		5,042			4,837			5,046			5,467			5,136
Foreclosed assets		-			-			-			-			-
Premises and equipment, net		13,805			14,065			14,048			13,427			13,098
Mortgage servicing rights, net		1,742			1,727			1,688			1,657			1,664
Federal Home Loan Bank stock (at cost)		8,825			8,825			8,825			7,006			6,373
Cash surrender value of bank-owned life insurance		24,732			24,565			24,401			24,242			24,085
Core deposit intangible		195			212			229			249			273
Goodwill		2,541			2,541			2,541			2,541			2,541
Other assets		11,539			10,598			12,111			11,682			11,866
TOTAL ASSETS	$	1,465,956		$	1,475,968		$	1,485,639		$	1,418,558		$	1,424,100
Liabilities
Non-interest-bearing deposits	$	259,515		$	265,078		$	250,435		$	247,608		$	266,829
Interest-bearing deposits		887,834			874,035			901,886			865,744			874,973
Total deposits		1,147,349			1,139,113			1,152,321			1,113,352			1,141,802
Federal Home Loan Bank advances		162,250			181,250			184,900			158,250			134,000
Other borrowings		6,872			6,128			5,775			8,096			8,058
Senior subordinated notes		4,781			4,779			4,778			4,776			4,774
Junior subordinated debentures		13,023			12,998			12,972			12,947			12,921
Allowance for credit losses on unfunded commitments		672			477			477			477			577
Accrued expenses and other liabilities		14,723			12,850			13,069			10,247			12,681
Total liabilities		1,349,670			1,357,595			1,374,292			1,308,145			1,314,813
Stockholders' equity
Preferred stock - no par value:
Authorized - 30,000 shares; no shares issued or outstanding
Outstanding - 7,200 shares, respectively		7,200			7,200			7,200			7,200			7,200
Common stock - no par value with a stated value of $1.00 per share:
Authorized - 18,000,000 shares; Issued - 5,490,798 shares
Outstanding - 4,092,977, 4,105,594, 4,128,382, 4,147,649 and
4,164,735 shares, respectively		1,830			1,830			1,830			1,830			1,830
Additional paid-in capital		8,610			8,567			8,527			8,466			8,460
Retained earnings		139,838			138,142			135,276			134,271			132,666
Accumulated other comprehensive income (loss), net of tax		(19,314	)		(15,814	)		(20,503	)		(20,775	)		(20,689	)
Treasury stock, at cost - 1,397,821, 1,385,204, 1,362,416, 1,343,149 and
1,326,063 shares, respectively		(21,878	)		(21,552	)		(20,983	)		(20,579	)		(20,180	)
Total stockholders' equity		116,286			118,373			111,347			110,413			109,287
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,465,956		$	1,475,968		$	1,485,639		$	1,418,558		$	1,424,100

PSB Holdings, Inc.
Consolidated Statements of Income
		Quarter Ended			Years Ended
(dollars in thousands,	Dec. 31,	Sep. 30,	Jun. 30,	Mar. 31,	Dec. 31,		December
except per share data - unaudited)		2024			2024		2024		2024			2023				2024			2023
Interest and dividend income:
Loans, including fees	$	15,646		$	15,634	$	15,433	$	15,109		$	14,888			$	61,822		$	53,633
Securities:
Taxable		1,545			1,345		1,295		1,197			1,147				5,382			4,919
Tax-exempt		522			522		521		526			532				2,091			2,137
Other interest and dividends		948			699		265		343			320				2,255			851
Total interest and dividend income		18,661			18,200		17,514		17,175			16,887				71,550			61,540
Interest expense:
Deposits		6,027			5,905		5,838		6,082			5,526				23,852			16,993
FHLB advances		1,890			2,038		1,860		1,450			1,349				7,238			4,417
Other borrowings		57			57		58		60			54				232			215
Senior subordinated notes		59			59		58		59			59				235			238
Junior subordinated debentures		252			252		255		251			254				1,010			985
Total interest expense		8,285			8,311		8,069		7,902			7,242				32,567			22,848
Net interest income		10,376			9,889		9,445		9,273			9,645				38,983			38,692
Provision for credit losses		-			-		100		95			100				195			450
Net interest income after provision for credit losses			10,376			9,889		9,345		9,178			9,545				38,788			38,242
Noninterest income:
Service fees		362			367		350		336			360				1,415			1,448
Mortgage banking income		414			433		433		308			247				1,588			1,228
Investment and insurance sales commissions		226			230		222		121			100				799			910
Net loss on sale of securities		(511	)		-		-		(495	)		(297	)			(1,006	)		(576	)
Increase in cash surrender value of life insurance			166			165		159		157			154				647			615
Life insurance death benefit		-			-		-		-			-				-			533
Other noninterest income		620			648		742		617			540				2,627			2,562
Total noninterest income		1,277			1,843		1,906		1,044			1,104				6,070			6,720
Noninterest expense:
Salaries and employee benefits		4,691			4,771		5,167		5,123			4,244				19,752			18,648
Occupancy and facilities		691			757		733		721			675				2,902			2,761
Loss (gain) on foreclosed assets		-			1		-		-			1				1			(45	)
Data processing and other office operations		1,111			1,104		1,047		1,022			1,001				4,284			3,785
Advertising and promotion		141			164		171		129			244				605			733
Core deposit intangible amortization		17			17		20		24			24				78			109
Other noninterest expenses		1,351			1,337		1,257		1,306			1,169				5,251			4,557
Total noninterest expense		8,002			8,151		8,395		8,325			7,358				32,873			30,548
Income before provision for income taxes		3,651			3,581		2,856		1,897			3,291				11,985			14,414
Provision for income taxes		524			593		410		169			878				1,696			4,845
Net income	$	3,127		$	2,988	$	2,446	$	1,728		$	2,413			$	10,289		$	9,569
Preferred stock dividends declared	$	122		$	122	$	122	$	122		$	122			$	486		$	486
Net income available to common shareholders	$	3,005		$	2,866	$	2,324	$	1,606		$	2,291			$	9,803		$	9,083
Basic earnings per common share	$	0.73		$	0.69	$	0.56	$	0.39		$	0.55			$	2.37		$	2.16
Diluted earnings per common share	$	0.73		$	0.69	$	0.56	$	0.39		$	0.55			$	2.37		$	2.16

PSB Holdings, Inc.
Quarterly Financial Summary
(dollars in thousands, except per share data)	Quarter ended
			Dec. 31,	Sep. 30,	Jun. 30,	Mar. 31,	Dec. 31,
Earnings and dividends:			2024			2024			2024			2024			2023
	Interest income		$	18,661		$	18,200		$	17,514		$	17,175		$	16,887
	Interest expense		$	8,285		$	8,311		$	8,069		$	7,902		$	7,242
	Net interest income		$	10,376		$	9,889		$	9,445		$	9,273		$	9,645
	Provision for credit losses		$	-		$	-		$	100		$	95		$	100
	Other noninterest income		$	1,277		$	1,843		$	1,906		$	1,044		$	1,104
	Other noninterest expense		$	8,002		$	8,151		$	8,395		$	8,325		$	7,358
	Net income available to common shareholders	$	3,005		$	2,866		$	2,324		$	1,606		$	2,291
	Basic earnings per common share (3)	$	0.73		$	0.69		$	0.56		$	0.39		$	0.55
	Diluted earnings per common share (3)	$	0.73		$	0.69		$	0.56		$	0.39		$	0.55
	Dividends declared per common share (3)	$	0.32		$	-		$	0.32		$	-		$	0.30
	Tangible net book value per common share (4)	$	25.98		$	26.41		$	24.55		$	24.21		$	23.84
	Semi-annual dividend payout ratio			23.27	%		n/a			33.61	%		n/a			38.14	%
	Average common shares outstanding		4,094,360			4,132,218			4,139,456			4,154,702			4,168,924
Balance sheet - average balances:
	Loans receivable, net of allowances for credit loss		$	1,064,619		$	1,066,795		$	1,088,013		$	1,081,936		$	1,081,851
	Assets		$	1,479,812		$	1,445,613		$	1,433,749		$	1,429,437		$	1,424,240
	Deposits		$	1,151,450		$	1,110,854		$	1,111,240		$	1,138,010		$	1,148,399
	Stockholders' equity		$	118,396		$	114,458		$	110,726		$	109,473		$	105,060
Performance ratios:
	Return on average assets (1)			0.84	%		0.82	%		0.69	%		0.49	%		0.67	%
	Return on average common stockholders' equity (1)			10.75	%		10.63	%		9.03	%		6.32	%		9.29	%
	Return on average tangible common
	stockholders' equity (1)(4)			11.07	%		10.96	%		9.34	%		6.57	%		9.64	%
	Net loan charge-offs to average loans (1)		0.02	%		0.00	%		0.00	%		0.00	%		0.00	%
	Nonperforming loans to gross loans			0.95	%		0.97	%		1.15	%		1.08	%		0.54	%
	Nonperforming assets to total assets			0.71	%		0.71	%		0.84	%		0.83	%		0.42	%
	Allowance for credit losses to gross loans		1.13	%		1.18	%		1.16	%		1.14	%		1.13	%
	Nonperforming assets to tangible equity
	plus the allowance for credit losses (4)		8.85	%		8.71	%		11.09	%		10.59	%		5.38	%
	Net interest rate margin (1)(2)			2.96	%		2.90	%		2.84	%		2.80	%		2.88	%
	Net interest rate spread (1)(2)			2.23	%		2.16	%		2.15	%		2.12	%		2.20	%
	Service fee revenue as a percent of
	average demand deposits (1)			0.53	%		0.56	%		0.56	%		0.54	%		0.52	%
	Noninterest income as a percent
	of gross revenue			6.40	%		9.20	%		9.81	%		5.73	%		6.14	%
	Efficiency ratio (2)			67.59	%		68.43	%		72.52	%		78.93	%		67.04	%
	Noninterest expenses to average assets (1)		2.15	%		2.24	%		2.35	%		2.34	%		2.05	%
	Average stockholders' equity less accumulated
	other comprehensive income (loss) to
	average assets			9.08	%		9.06	%		9.03	%		8.98	%		8.88	%
	Tangible equity to tangible assets (4)		7.76	%		7.85	%		7.32	%		7.60	%		7.49	%
Stock price information:
	High		$	27.90		$	25.00		$	21.40		$	22.50		$	22.30
	Low		$	25.00		$	20.30		$	19.75		$	20.05		$	20.10
	Last trade value at quarter-end		$	26.50		$	25.00		$	20.40		$	21.25		$	22.11
(1) Annualized
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.
(3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals.
(4) Tangible stockholders' equity excludes goodwill and core deposit intangibles.

PSB Holdings, Inc.
Consolidated Statements of Comprehensive Income
			Quarter Ended
			Dec. 31,	Sep. 30,	Jun. 30,	Mar. 31,	Dec. 31,
(dollars in thousands - unaudited)		2024			2024			2024			2024			2023
Net income	$	3,127		$	2,988		$	2,446		$	1,728		$	2,413
Other comprehensive income:
	Unrealized gain (loss) on securities available for sale, net of tax			(3,955	)		4,738			184			(615	)		5,278
	Reclassification adjustment for security loss included in net income, net of tax			404			-			-			391			280
	Accretion of unrealized loss included in net income on securities available for sale deferred tax adjustment for Wisconsin Act 19			(76	)		-			-			(35	)		-
	Amortization of unrealized loss included in net income on securities available for sale transferred to securities held to maturity, net of tax			90			90			89			91			91
	Unrealized gain (loss) on interest rate swap, net of tax			65			(101	)		39			122			(109	)
	Reclassification adjustment of interest rate swap settlements included in earnings, net of tax			(27	)		(38	)		(40	)		(41	)		(39	)
Other comprehensive income (loss)		(3,499	)		4,689			272			(87	)		5,501
Comprehensive income (loss)	$	(372	)	$	7,677		$	2,718		$	1,641		$	7,914

PSB Holdings, Inc.
Nonperforming Assets as of:
	Dec 31,	Sep 30,	Jun 30,	Mar 31,	Dec 31,
(dollars in thousands)		2024			2024			2024			2024			2023
Nonaccrual loans (excluding restructured loans)	$	10,109		$	10,116		$	12,184		$	11,498		$	5,596
Nonaccrual restructured loans		18			25			28			30			34
Restructured loans not on nonaccrual		286			292			299			304			310
Accruing loans past due 90 days or more		-			-			-			-			-
Total nonperforming loans		10,413			10,433			12,511			11,832			5,940
Other real estate owned		-			-			-			-			-
Total nonperforming assets	$	10,413		$	10,433		$	12,511		$	11,832		$	5,940
Nonperforming loans as a % of gross loans receivable		0.95	%		0.97	%		1.15	%		1.08	%		0.54	%
Total nonperforming assets as a % of total assets		0.71	%		0.71	%		0.84	%		0.83	%		0.42	%
Allowance for credit losses as a % of nonperforming loans		118.52	%		120.75	%		100.69	%		105.59	%		207.10	%

PSB Holdings, Inc.
Nonperforming Assets >= $500,000 net book value before specific reserves
At December 31, 2024
(dollars in thousands)
		Gross	Specific
Collateral Description	Asset Type	Principal	Reserves
Real estate - Recreational Facility	Nonaccrual	$	4,126		$	151
Real estate - Independent Auto Repair	Nonaccrual		538			-
Real estate - Dealership	Nonaccrual		2,708			560
Total listed nonperforming assets		$	7,372		$	711
Total bank wide nonperforming assets		$	10,413		$	1,043
Listed assets as a % of total nonperforming assets			71	%		68	%

PSB Holding, Inc.
Loan Composition by Collateral Type
Quarter-ended (dollars in thousands)	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023
Commercial:
Commercial and industrial	$	116,864		$	115,234		$	125,508		$	118,821		$	117,207
Agriculture		11,568			11,203			11,480			12,081			12,304
Municipal		15,733			12,596			11,190			28,842			31,530
Total Commercial		144,165			139,033			148,178			159,744			161,041
Commercial Real Estate:
Commercial real estate		551,641			541,577			544,171			546,257			536,209
Construction and development		79,377			60,952			70,540			63,375			81,701
Total Commercial Real Estate		631,018			602,529			614,711			609,632			617,910
Residential real estate:
Residential		271,643			269,954			270,944			274,300			274,453
Construction and development		28,959			34,655			36,129			34,158			33,960
HELOC		36,887			36,734			33,838			31,357			29,766
Total Residential Real Estate		337,489			341,343			340,911			339,815			338,179
Consumer installment		5,060			4,770			4,423			4,867			4,357
Subtotals - Gross loans		1,117,732			1,087,675			1,108,223			1,114,058			1,121,487
Loans in process of disbursement		(27,791	)		(17,836	)		(21,484	)		(20,839	)		(31,359	)
Subtotals - Disbursed loans		1,089,941			1,069,839			1,086,739			1,093,219			1,090,128
Net deferred loan costs		605			733			702			669			649
Allowance for credit losses		(12,342	)		(12,598	)		(12,597	)		(12,494	)		(12,302	)
Total loans receivable	$	1,078,204		$	1,057,974		$	1,074,844		$	1,081,394		$	1,078,475

PSB Holding, Inc.
Selected Commercial Real Estate Loans by Purpose
	Dec 31,		Sept 30,		June 30,		Mar 31,		Dec 31,
(dollars in thousands)	2024		2024		2024		2024		2023
	Total Exposure	% of Portfolio (1)		Total Exposure	% of Portfolio (1)		Total Exposure	% of Portfolio (1)		Total Exposure	% of Portfolio (1)		Total Exposure	% of Portfolio (1)
Multi Family	$	140,087	14.0	%		$	140,307	14.7	%		$	146,873	15.2	%		$	142,001	14.4	%		$	132,386	13.2	%
Industrial and Warehousing		88,297	8.8				86,818	9.1				86,025	8.9				85,409	8.6				83,817	8.3
Retail		33,991	3.4				33,020	3.5				34,846	3.6				33,177	3.4				35,419	3.5
Hotels		31,101	3.1				31,611	3.3				34,613	3.6				35,105	3.6				36,100	3.6
Office		6,234	0.6				6,378	0.7				6,518	0.7				6,655	0.7				6,701	0.7
(1) Percentage of commercial and commercial real estate portfolio and commitments.

PSB Holdings, Inc.
Deposit Composition
Insured and Collateralized Deposits	December 31,	September 30,	June 30,	March 31,	December 31,
(dollars in thousands)		2024			2024			2024			2024			2023
	$	%	$	%	$	%	$	%	$	%
Non-interest bearing demand	$	204,167	17.8	%	$	210,534	18.5	%	$	202,343	17.5	%	$	199,076	17.8	%	$	197,571	17.3	%
Interest-bearing demand and savings		315,900	27.6	%		305,631	26.8	%		304,392	26.5	%		318,673	28.7	%		317,984	27.8	%
Money market deposits		141,024	12.3	%		138,376	12.2	%		137,637	12.0	%		143,167	12.9	%		142,887	12.5	%
Retail and local time deposits <= $250		155,099	13.5	%		155,988	13.7	%		149,298	13.0	%		148,404	13.3	%		149,145	13.1	%
Total core deposits		816,190	71.2	%		810,529	71.2	%		793,670	69.0	%		809,320	72.7	%		807,587	70.7	%
Retail and local time deposits > $250		25,500	2.2	%		23,500	2.1	%		22,500	2.0	%		24,508	2.3	%		23,000	2.0	%
Broker & national time deposits <= $250		1,241	0.1	%		1,241	0.1	%		1,490	0.1	%		2,229	0.2	%		3,470	0.3	%
Broker & national time deposits > $250		56,164	4.9	%		56,164	4.9	%		56,328	4.9	%		61,752	5.5	%		70,020	6.1	%
Totals	$	899,095	78.4	%	$	891,434	78.3	%	$	873,988	76.0	%	$	897,809	80.7	%	$	904,077	79.1	%
PSB Holdings, Inc.
Deposit Composition
Uninsured Deposits	December 31,	September 30,	June 30,	March 31,	December 31,
(dollars in thousands)		2024			2024			2024			2024			2023
	$	%	$	%	$	%	$	%	$	%
Non-interest bearing demand	$	55,348	4.8	%	$	54,544	4.8	%	$	48,092	4.1	%	$	48,532	4.4	%	$	69,258	6.1	%
Interest-bearing demand and savings		20,934	1.8	%		18,317	1.6	%		32,674	2.8	%		20,535	1.8	%		20,316	1.8	%
Money market deposits		153,334	13.4	%		157,489	13.8	%		177,954	15.4	%		124,766	11.2	%		124,518	10.9	%
Retail and local time deposits <= $250		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%
Total core deposits		229,616	20.0	%		230,350	20.2	%		258,720	22.3	%		193,833	17.4	%		214,092	18.8	%
Retail and local time deposits > $250		18,638	1.6	%		17,329	1.5	%		19,613	1.7	%		21,710	1.9	%		23,633	2.1	%
Broker & national time deposits <= $250		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%
Broker & national time deposits > $250		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%
Totals	$	248,254	21.6	%	$	247,679	21.7	%	$	278,333	24.0	%	$	215,543	19.3	%	$	237,725	20.9	%
PSB Holdings, Inc.
Deposit Composition
Total Deposits	December 31,	September 30,	June 30,	March 31,	December 31,
(dollars in thousands)		2024			2024			2024			2024			2023
	$	%	$	%	$	%	$	%	$	%
Non-interest bearing demand	$	259,515	22.6	%	$	265,078	23.3	%	$	250,435	21.6	%	$	247,608	22.2	%	$	266,829	23.4	%
Interest-bearing demand and savings		336,834	29.4	%		323,948	28.4	%		337,066	29.3	%		339,208	30.5	%		338,300	29.6	%
Money market deposits		294,358	25.7	%		295,865	26.0	%		315,591	27.4	%		267,933	24.1	%		267,405	23.4	%
Retail and local time deposits <= $250		155,099	13.5	%		155,988	13.7	%		149,298	13.0	%		148,404	13.3	%		149,145	13.1	%
Total core deposits		1,045,806	91.2	%		1,040,879	91.4	%		1,052,390	91.3	%		1,003,153	90.1	%		1,021,679	89.5	%
Retail and local time deposits > $250		44,138	3.8	%		40,829	3.6	%		42,113	3.7	%		46,218	4.2	%		46,633	4.1	%
Broker & national time deposits <= $250		1,241	0.1	%		1,241	0.1	%		1,490	0.1	%		2,229	0.2	%		3,470	0.3	%
Broker & national time deposits > $250		56,164	4.9	%		56,164	4.9	%		56,328	4.9	%		61,752	5.5	%		70,020	6.1	%
Totals	$	1,147,349	100.0	%	$	1,139,113	100.0	%	$	1,152,321	100.0	%	$	1,113,352	100.0	%	$	1,141,802	100.0	%

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
	Quarter ended December 31, 2024		Quarter ended September 30, 2024		Quarter ended December 31, 2023
	Average		Yield /		Average		Yield /		Average		Yield /
	Balance	Interest	Rate		Balance	Interest	Rate		Balance	Interest	Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,077,242		$	15,693	5.80	%		$	1,079,393		$	15,674	5.78	%		$	1,094,152		$	14,974	5.43	%
Taxable securities		194,272			1,545	3.16	%			177,520			1,345	3.01	%			167,366			1,147	2.72	%
Tax-exempt securities (2)		79,475			661	3.31	%			79,472			661	3.31	%			80,922			673	3.30	%
FHLB stock		8,825			227	10.23	%			8,825			176	7.93	%			6,373			158	9.84	%
Other		58,405			721	4.91	%			36,680			523	5.67	%			11,846			162	5.43	%
Total (2)		1,418,219			18,847	5.29	%			1,381,890			18,379	5.29	%			1,360,659			17,114	4.99	%
Non-interest-earning assets:
Cash and due from banks		15,500						17,162						16,243
Premises and equipment,
net		14,001						14,216						13,243
Cash surrender value ins		24,625						24,458						23,990
Other assets		20,090						20,485						22,406
Allowance for credit
losses		(12,623	)					(12,598	)					(12,301	)
Total	$	1,479,812						$	1,445,613						$	1,424,240
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand
deposits	$	319,777		$	1,479	1.84	%		$	323,841		$	1,515	1.86	%		$	327,036		$	1,296	1.57	%
Money market deposits		304,897			1,961	2.56	%			277,884			1,876	2.69	%			272,087			1,820	2.65	%
Time deposits		256,201			2,587	4.02	%			247,296			2,514	4.04	%			273,332			2,410	3.50	%
FHLB borrowings		170,701			1,890	4.40	%			182,414			2,038	4.44	%			133,560			1,349	4.01	%
Other borrowings		6,848			57	3.31	%			6,702			57	3.38	%			6,999			54	3.06	%
Senior sub. notes		4,780			59	4.91	%			4,779			59	4.91	%			4,773			59	4.90	%
Junior sub. debentures		13,011			252	7.71	%			12,985			252	7.72	%			12,909			254	7.81	%
Total		1,076,215			8,285	3.06	%			1,055,901			8,311	3.13	%			1,030,696			7,242	2.79	%
Non-interest-bearing liabilities:
Demand deposits		270,575						261,833						275,944
Other liabilities		14,626						13,421						12,540
Stockholders' equity		118,396						114,458						105,060
Total	$	1,479,812						$	1,445,613						$	1,424,240
Net interest income		$	10,562				$	10,068				$	9,872
Rate spread			2.23	%				2.16	%				2.20	%
Net yield on interest-earning assets		2.96	%				2.90	%				2.88	%
(1) Nonaccrual loans are included in the daily average loan balances outstanding.
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
			Year ended December 31, 2024		Year ended December 31, 2023
			Average		Yield/		Average		Yield/
			Balance	Interest	Rate		Balance	Interest	Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,087,816		$	62,085	5.71	%		$	1,043,144		$	53,824	5.16	%
Taxable securities		179,074			5,382	3.01	%			183,984			4,919	2.67	%
Tax-exempt securities (2)		79,735			2,647	3.32	%			81,481			2,705	3.32	%
FHLB stock		8,024			750	9.35	%			5,304			386	7.28	%
Other			29,153			1,505	5.16	%			9,073			465	5.13	%
Total (2)			1,383,802			72,369	5.23	%			1,322,986			62,299	4.71	%
Non-interest-earning assets:
Cash and due from banks		16,841						17,110
Premises and equipment, net			13,834						13,294
Cash surrender value ins		24,382						24,331
Other assets		20,911						23,136
Allowance for credit losses			(12,528	)					(12,079	)
Total		$	1,447,242						$	1,388,778
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand deposits		$	331,411		$	6,133	1.85	%		$	344,906		$	4,582	1.33	%
Money market deposits		281,828			7,569	2.69	%			249,079			5,328	2.14	%
Time deposits		256,265			10,150	3.96	%			261,595			7,083	2.71	%
FHLB borrowings		167,708			7,238	4.32	%			116,282			4,417	3.80	%
Other borrowings		7,241			232	3.20	%			7,061			215	3.04	%
Senior sub. notes			4,778			235	4.92	%			4,927			238	4.83	%
Junior sub. debentures		12,972			1,010	7.79	%			12,870			985	7.65	%
Total			1,062,203			32,567	3.07	%			996,720			22,848	2.29	%
Non-interest-bearing liabilities:
Demand deposits		258,173						274,273
Other liabilities		13,475						12,397
Stockholders' equity		113,391						105,388
Total		$	1,447,242						$	1,388,778
Net interest income		$	39,802				$	39,451
Rate spread				2.16	%				2.42	%
Net yield on interest-earning assets		2.88	%				2.98	%
(1) Nonaccrual loans are included in the daily average loan balances outstanding.
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.

Investor Relations Contact
PSB Holdings, Inc.
1905 Stewart Avenue
Wausau, WI 54401
888.929.9902
...

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