Investor Relations Contact
PSB Holdings, Inc.
1905 Stewart Avenue
Wausau, WI 54401
888.929.9902
[email protected]
Stock Symbol: PSBQ | Real-Time Quotes: www.OTCmarkets.com
FOR IMMEDIATE RELEASE
PSB announces December 2016 quarterly earnings of $1.51
per share on net income of $2.3 million
Wausau, WI. – January 24, 2017 – PSB Holdings, Inc. (OTCPK: PSBQ) reported December 2016 quarterly
earnings of $1.51 per share on net income of $2,310,000, compared to earnings of $1.16 per share on net
income of $1,836,000 during the December 2015 quarter. Increased earnings were due primarily to the
recapture of loan loss reserves associated with full collection of two problem loans. The December 2016
quarterly provision for loan losses was $610,000 less than the December 2015 quarter, making up 78% of
the increased quarterly net income after tax impacts. The remaining increase to quarterly net income was
driven by greater net interest income and fee income on loan growth and higher net interest margin which
offset increased operating expenses.
During the year ended December 31, 2016, earnings were $5.48 per share on net income of $8,436,000,
compared to earnings of $4.83 per share on net income of $7,749,000 during 2015. Both years included
special non-recurring income items. 2016 earnings increased $242,000, or $.16 per share, from life
insurance proceeds, net of related benefit payments. 2015 earnings increased $552,000, or $.34 per share
on a large loan loss recovery. Excluding the 2016 life insurance proceeds and the 2015 loan recovery,
proforma 2016 earnings were $5.32 per share compared to $4.49 per share in 2015, up 18.5%. The yearto-date proforma income increase before the special items was due primarily to increased net interest
income on commercial related loan growth and lower provision for loan losses.
Peter W. Knitt, President and CEO of PSB Holdings, Inc. noted, “Strong December 2016 quarterly earnings
on continued growth in net interest income and improved loan quality completed an extraordinary year of
loan growth and related income. Net loans receivable grew $50.8 million during calendar 2016, up 9.5%
since the beginning of the year. Disregarding our purchase of Marathon State Bank in June 2012, this was
the largest calendar year over year dollar increase in the bank’s history and the largest percentage increase
seen since December 2008.”
Knitt added, “We expect 2017 to be a year of transition for many reasons. A consistently improving
economy combined with a pro-growth Donald Trump administration point to increased short-term interest
rates and a potential decline in net interest margin.” Knitt continued, “Higher rates could also slow
residential mortgage banking income growth. Therefore, continued commercial loan growth will likely be
important to maintaining net income growth during 2017.”
Financial Highlights:
Calendar 2016 earnings per share of $5.48 compared to $4.83 in 2015, up 13.5%. Return on
average shareholders’ equity was 12.39% in 2016 compared to 12.04% during 2015.
December 31, 2016 total assets of $827.5 million, a new milestone, up 5.5% during the year. Net
loans receivable grew $50.8 million since December 31, 2015, up 9.5%, reaching $586.1 million.
Tangible net book value of $45.14 per share at December 31, 2016, up 9.7% from December 31,
2015. PSB repurchased 56,350 shares of its common stock (3.6% of the amount outstanding at
the beginning of the year) during calendar 2016 at an average cost of $45.32 per share.
PSB declared a semi-annual cash dividend of $.45 per common share payable January 31, 2017,
up 7% from the dividend declared in December 2015.
PSB Holdings, Inc. | www.psbholdingsinc.com
Page 2 of 11
PSB announces December 2016 quarterly earnings of $1.51 per share on net income of $2.3 million
Balance Sheet Highlights
Total assets were $827.5 million at December 31, 2016 compared to $784.4 million at December 31, 2015,
an increase of $43.1 million, or 5.5%. Net loans receivable increased $50.8 million, or 9.5%, since
December 31, 2015. The increase in loans was funded in part by a $13.1 million decrease in cash and
cash equivalents, a $29.4 million increase in local deposits, and a $6.9 million increase in wholesale funding
since the beginning of the year. Wholesale funding (including brokered certificates of deposit, Federal
Home Loan Bank advances, and wholesale repurchase agreements) was $101.9 million (12.3% of total
assets) at December 31, 2016 compared to $95.0 million (12.1% of total assets) at December 31, 2015, up
7.2%.
Asset Quality, Credit Costs, and Allowance for Loan Loss Highlights
Total nonperforming assets declined $3,082,000, or 26.4%, during the year ended December 31, 2016 to
$8,585,000. The majority of the decline was related to full repayment of several long-time problem loans
and internal credit upgrades to other borrowers recognizing improved operational performance. Net
charge-offs of loan principal were $322,000 and $759,000 (excluding a large $1,230,000 loan recovery)
during the year ended December 31, 2016 and 2015, respectively. These net charge-offs (excluding the
large loan recovery), were .06% and .14% of average loans during the years ended December 31, 2016
and 2015, respectively.
Nonperforming assets are shown in the following table:
Nonperforming Assets as of
(dollars in thousands)
Nonaccrual loans (excluding restructured loans)
Nonaccrual restructured loans
Restructured loans not on nonaccrual
Accruing loans past due 90 days or more
December 31,
2016
2015
$
Total nonperforming loans
Foreclosed assets
Total nonperforming assets
Nonperforming loans as a % of gross loans
Total nonperforming assets as a % of total assets
Allowance for loan losses as a % of nonperforming loans
2,369
1,242
4,601
-
$
10,289
1,378
8,212
373
$
8,585
1.39%
1.04%
74.07%
3,161
2,137
4,991
-
$
11,667
1.90%
1.49%
61.72%
PSB recorded a total credit for loan losses of ($400,000) during the December 2016 quarter recognizing
full repayment of two impaired loans which had maintained $381,000 in estimated loss reserves. Recapture
of these unneeded reserves resulted in the credit to the provision. Despite significant loan growth during
calendar 2016, consistently improving credit metrics and lower net charge-offs reduced the required amount
of allowance for loan losses, resulting in a provision for loan losses of $55,000 for the entire year. During
the December 2015 quarter, the provision for loan losses was $210,000 while a credit to the provision for
loan losses of ($530,000) was recorded for the year ended December 31, 2015. Excluding the $1,230,000
recovery received during 2015 on a previously charged-off loan, total provision for loan losses during
calendar 2015 would have been $700,000, compared to $55,000 during calendar 2016.
Therefore, the decline in credit costs when excluding the large 2015 recovery was an important driver of
higher net income during 2016. Future commercial related loan growth could increase required provisions
for loan loss, negatively impacting net income growth. At December 31, 2016, the allowance for loan losses
was $6,083,000, or 1.03% of total loans (74% of nonperforming loans), compared to $6,350,000, or 1.17%
of total loans (62% of nonperforming loans) at December 31, 2015.
PSB Holdings, Inc. | www.psbholdingsinc.com
Page 3 of 11
PSB announces December 2016 quarterly earnings of $1.51 per share on net income of $2.3 million
Nonperforming assets aggregating to $500,000 or more, measured by gross principal outstanding per credit
relationship, included three relationships at December 31, 2016 and four relationships at December 31,
2015 totaling $4,321,000 and $4,715,000, respectively. Specific reserves maintained on these large
problem loans were $147,000 at December 31, 2016 and $286,000 at December 31, 2015.
Capital and Liquidity Highlights
During the year ended December 31, 2016, stockholders’ equity increased $3,967,000, from $8,436,000 of
net income, and capital from vesting of restricted stock grants and other share issue adjustments of
$301,000, reduced by $2,554,000 paid in connection with stock buybacks, $1,379,000 in shareholder
dividends, and other comprehensive net loss of $837,000 from a decline in fair value of securities available
for sale. Changes in unrealized gains and losses on securities available for sale are not reflected in net
income, but recorded as changes to stockholders’ equity, net of tax impacts, and categorized as other
comprehensive income (loss).
During the year ended December 31, 2016, PSB repurchased 56,350 shares of its common stock (3.6% of
shares outstanding at the beginning of 2016) at an average cost of $45.32 per share, compared to
repurchases during the year ended December 31, 2015 of 59,627 shares at an average cost of $41.77 per
share. PSB intends for the foreseeable future to continue its stock buyback plan with shares purchased
directly from shareholders or on the open market at prevailing prices as opportunities arise.
Tangible net book value increased to $45.14 per share at December 31, 2016, compared to $41.16 per
share at December 31, 2015, an increase of 9.7%. PSB’s stockholders’ equity increased slightly to 8.34%
of total assets at December 31, 2016 compared to 8.30% of assets at December 31, 2015. For regulatory
purposes, the $7.73 million junior subordinated debentures maturing September 2035 reflected as debt on
the Consolidated Balance Sheet are reclassified as Tier 1 regulatory equity capital. PSB’s subsidiary,
Peoples State Bank, was considered “well capitalized” at December 31, 2016, the strongest capital
designation under applicable banking regulations.
Net Interest Income and Margin Highlights
Tax adjusted net interest income totaled $6,724,000 (on net margin of 3.49%) during the December 2016
quarter compared to $6,571,000 (on net margin of 3.43%) during the September 2016 quarter and
$6,270,000 (on net margin of 3.40%) in the December 2015 quarter. During the year ended December 31,
2016, tax adjusted net interest income totaled $25,908,000 (on net margin of 3.46%) compared to
$24,624,000 (on net margin of 3.45%) in 2015, up 5.2%.
Net interest income growth was due to average loan growth of 5.0% during the year ended December 31,
2016 compared to 2015. Commercial related loans led the growth, increasing $45.2 million (up 11.8%)
during the year ended December 31, 2016, with approximately 70% of this loan growth in the commercial
real estate category. The growth also includes a $3.2 million increase in purchased commercial loan
participations, up 14.8%, which was also a contributor to loan growth during 2016.
Net interest income increased over prior year comparable periods due to loan growth, rather than increased
net interest margin, as market short-term interest rates were largely unchanged. A continuing economic
recovery, a Donald Trump pro-growth administration, and a tighter employment market could result in
regular short-term rate increases during 2017. Rising market based short-term rates could pressure net
interest margin lower during 2017. Therefore, increased net interest income in 2017 is likely to depend on
continued commercial related loan growth.
Noninterest and Fee Income Highlights
Total noninterest income for the quarter ended December 31, 2016 was $1,813,000 compared to
$1,526,000 during the December 2015 quarter, an increase of $287,000, or 18.8%. Mortgage banking
revenue from the sale and servicing of residential first mortgage loans to the secondary market provided
most of the increase, up $199,000, or 42.0% compared to the prior year quarter, including a $119,000
benefit from a change in the mortgage servicing right valuation allowance. Investment and insurance sales
commissions also increased $42,000, or 18.9%. All other items increased $46,000, or 5.5%.
PSB Holdings, Inc. | www.psbholdingsinc.com
Page 4 of 11
PSB announces December 2016 quarterly earnings of $1.51 per share on net income of $2.3 million
Total noninterest income for the year ended December 31, 2016 was $6,969,000 compared to $6,148,000
in 2015. During 2016, noninterest income increased $380,000 from receipt of life insurance death benefits.
Excluding this non-recurring item, noninterest income would have been $6,589,000 in 2016 compared to
$6,148,000 in 2015, up $441,000, or 7.2%. Most of the increase was from higher mortgage banking
revenue, which increased $315,000, or 18.3%, during 2016 compared to 2015, including a $164,000 benefit
from a change in the mortgage servicing right valuation allowance. All other items increased $126,000, or
2.8% during 2016 compared to 2015.
During the year ended December 31, 2016, the number of residential mortgage loans sold to the secondary
market was similar to 2015. However, mortgage banking revenue increased in part from higher secondary
market sale spreads (gains), approximating 1.51% of sold principal during 2016 before considering
originated mortgage servicing rights. In addition, changes in the mortgage servicing valuation allowance
represented 52% of the increase in mortgage banking revenue in 2016 compared to 2015. Higher mortgage
interest rates in 2017 could reduce customer demand and units sold to the secondary market, and
competition among lenders could lower the average gain on principal sold. These factors could reduce
mortgage banking revenue during 2017 compared to 2016. Due to the normal seasonal slowdown in local
housing activity, mortgage banking revenue is expected to decline during the January 2017 quarter
compared to the December 2016 quarter.
Operating Expense Highlights
Noninterest expense totaled $5,215,000 during the December 2016 quarter compared to $4,651,000 during
the December 2015 quarter, up $564,000, or 12.1%. Most of the increase was in salaries and employee
benefits, up $495,000, or 18.6%. Included in this wage and benefit increase is $67,000 of wages and
benefits related to the new Milwaukee loan production office, $186,000 of increased wages for all other
bank employees (up 11.0%), $156,000 of increased health plan expense (up 75.7%) on a large stop-loss
claim, and $60,000 in increased year-end incentives (up 13.3%) due to increased net income. Other
noninterest expenses in the December 2016 quarter include a non-recurring vendor contract termination
payment totaling $105,000. All other December 2016 quarterly operating costs decreased $36,000, or
1.8%, compared to the December 2015 quarter.
Noninterest expense totaled $19,505,000 during the year ended December 31, 2016 compared to
$18,881,000 during the comparable 2015 period, up $624,000, or 3.3%. Salaries and employee benefits
expense during 2016 includes a non-recurring benefit payment of $227,000, and 2015 includes $318,000
of additional employee incentives benefits related to the large loan recovery in 2015. Operating expenses
associated with the Milwaukee, Wisconsin loan production office opened April 2016 increased 2016
expenses by $238,000. Excluding these special items, total noninterest expense increased $477,000, or
2.6%, during the year ended December 31, 2016 compared to 2015.
PSB Holdings, Inc. | www.psbholdingsinc.com
Page 5 of 11
PSB announces December 2016 quarterly earnings of $1.51 per share on net income of $2.3 million
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 north central Wisconsin from nine full service banking
locations in Marathon, Oneida, and Vilas counties and a loan production office in Milwaukee, Wisconsin.
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 OTC Markets Exchange. More information about PSB, its management, and its financial
performance may be found at www.psbholdingsinc.com.
Forward Looking Statements
Certain matters discussed in this news release, including without limitation those relating to potential loan
and deposit growth, future profits, changes in noninterest income and expenses, pro-forma impacts to
income from non-recurring or unusual income and expense items, and future interest rates, are forwardlooking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation
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. PSB Holdings, Inc. assumes no obligation to update or supplement
forward-looking statements that become untrue because of events subsequent to this press release.
###
PSB Holdings, Inc. | www.psbholdingsinc.com
Page 6 of 11
PSB announces December 2016 quarterly earnings of $1.51 per share on net income of $2.3 million
PSB Holdings, Inc.
Quarterly Financial Summary
(dollars in thousands, except per share data)
Dec. 31
2016
Earnings and dividends:
Net income
Basic earnings per share (3)
Diluted earnings per share (3)
Dividends declared per share (3)
Tangible net book value per share (4)
Semi-annual dividend payout ratio
Average common shares outstanding
Quarter ended - Unaudited
Sept. 30,
June 30,
March 31,
2016
2016
2016
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ 584,704
$ 805,952
$ 656,018
$ 69,992
$ 575,825
$ 799,670
$ 651,545
$ 68,436
$ 560,132
$ 774,459
$ 636,884
$ 67,752
$ 539,906
$ 765,597
$ 649,711
$ 65,844
$ 548,181
$ 768,963
$ 644,894
$ 66,214
2,310
1.51
1.51
0.45
45.14
15.14%
1,527,275
2,224
1.45
1.45
45.24
n/a
1,529,806
2,057
1.33
1.33
0.45
43.59
17.73%
1,541,827
1,845
1.18
1.18
42.55
n/a
1,561,284
Dec. 31,
2015
1,836
1.16
1.16
0.42
41.16
15.78%
1,579,799
Balance sheet - average balances:
Loans receivable, net of allowances
Total assets
Deposits
Stockholders' equity
Performance ratios:
Return on average assets (1)
Return on avg. stockholders' equity (1)
Average tangible stockholders' equity
less accumulated other comprehensive
income (loss) to average assets (4)
Net loan chg-offs to avg loans (1)
Nonperforming loans to gross loans
Allowance for loan losses to gross loans
Nonperforming assets to tangible equity
plus the allowance for loan losses (4)
Net interest rate margin (1)(2)
Net interest rate spread (1)(2)
Service fee revenue as a percent of
average demand deposits (1)
Noninterest income as a percent
of gross revenue
Efficiency ratio (2)
Noninterest expenses to avg. assets (1)
1.14%
13.13%
1.11%
12.93%
1.07%
12.21%
0.97%
11.27%
0.95%
11.00%
8.67%
0.03%
1.39%
1.03%
8.45%
0.06%
1.22%
1.10%
8.66%
0.01%
1.49%
1.11%
8.56%
0.13%
1.71%
1.12%
8.57%
0.38%
1.90%
1.17%
11.76%
3.49%
3.34%
11.20%
3.43%
3.28%
13.80%
3.47%
3.34%
15.59%
3.46%
3.32%
16.79%
3.40%
3.26%
1.16%
1.28%
1.38%
1.27%
1.25%
19.50%
61.09%
2.57%
20.51%
55.56%
2.34%
19.97%
59.90%
2.53%
17.55%
60.93%
2.47%
17.95%
59.66%
2.40%
Stock price information:
High
Low
Market value at quarter-end
$
$
$
59.00
47.50
59.00
$
$
$
49.00
42.10
48.52
$
$
$
47.75
45.00
45.00
$
$
$
45.00
43.75
45.00
(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.
$
$
$
45.00
43.65
44.25
PSB Holdings, Inc. | www.psbholdingsinc.com
Page 7 of 11
PSB announces December 2016 quarterly earnings of $1.51 per share on net income of $2.3 million
PSB Holdings, Inc.
Consolidated Statements of Income
Three Months Ended
December 31,
2016
2015
(dollars in thousands,
except per share data - unaudited)
Interest and dividend income:
Loans, including fees
Securities:
Taxable
Tax-exempt
Other interest and dividends
$
6,475
$
5,940
Year Ended
December 31,
2016
2015
$
24,839
$
23,240
611
364
36
628
382
27
2,486
1,465
127
2,548
1,508
76
7,486
6,977
28,917
27,372
Interest expense:
Deposits
FHLB advances
Other borrowings
Senior subordinated notes
Junior subordinated debentures
675
140
63
23
87
690
75
61
33
86
2,768
461
245
103
343
2,697
269
242
141
342
Total interest expense
988
945
3,920
3,691
Net interest income
Provision (credit) for loan losses
6,498
(400)
6,032
210
24,997
55
23,681
(530)
Net interest income after provision (credit) for loan losses
6,898
5,822
24,942
24,211
395
673
264
99
382
397
474
222
100
333
1,561
2,040
953
401
2,014
1,591
1,725
1,000
401
1,431
1,813
1,526
6,969
6,148
3,152
433
87
551
141
13
838
2,657
484
74
525
126
110
675
11,837
1,761
49
2,213
371
316
2,958
11,089
1,884
206
2,137
363
472
2,730
5,215
4,651
19,505
18,881
3,496
1,186
2,697
861
12,406
3,970
11,478
3,729
Total interest and dividend income
Noninterest income:
Service fees
Mortgage banking
Investment and insurance sales commissions
Increase in cash surrender value of life insurance
Other noninterest income
Total noninterest income
Noninterest expense:
Salaries and employee benefits
Occupancy and facilities
Loss on foreclosed assets
Data processing and other office operations
Advertising and promotion
FDIC insurance premiums
Other noninterest expenses
Total noninterest expense
Income before provision for income taxes
Provision for income taxes
Net income
Basic earnings per share
Diluted earnings per share
$
$
$
2,310
1.51
1.51
$
$
$
1,836
1.16
1.16
$
$
$
8,436
5.48
5.48
$
$
$
7,749
4.83
4.83
PSB Holdings, Inc. | www.psbholdingsinc.com
Page 8 of 11
PSB announces December 2016 quarterly earnings of $1.51 per share on net income of $2.3 million
PSB Holdings, Inc.
Consolidated Statements of Comprehensive Income
Three Months Ended
December 31,
2016
2015
(dollars in thousands - unaudited)
Net income
$
2,310
$
1,836
Year Ended
December 31,
2016
2015
$
8,436
$
7,749
Other comprehensive income (loss), net of tax:
Unrealized loss on securities available
for sale
(1,824)
(488)
(801)
(414)
Amortization of unrealized gain on securities
available for sale transferred to securities
held to maturity
(25)
(38)
(114)
(189)
Unrealized gain (loss) on interest rate swap
5
20
(16)
(50)
Reclassification adjustment of interest rate
swap settlements included in earnings
21
27
94
112
(479)
(837)
(541)
Other comprehensive loss
Comprehensive income
(1,823)
$
487
$
1,357
$
7,599
$
7,208
PSB Holdings, Inc. | www.psbholdingsinc.com
Page 9 of 11
PSB announces December 2016 quarterly earnings of $1.51 per share on net income of $2.3 million
PSB Holdings, Inc.
Consolidated Balance Sheets
December 31, 2016 unaudited, December 31, 2015 derived from audited financial statements
(dollars in thousands, except per share data)
Assets
Cash and due from banks
Interest-bearing deposits and money market funds
Federal Funds sold
December 31,
2016
$
Cash and cash equivalents
Securities available for sale (at fair value)
Securities held to maturity (fair value of $70,947 and $72,866)
Bank certificates of deposit
Loans held for sale
Loans receivable, net of allowance for loan losses
Accrued interest receivable
Foreclosed assets
Premises and equipment, net
Mortgage servicing rights, net
Federal Home Loan Bank stock (at cost)
Cash surrender value of bank-owned life insurance
Other assets
TOTAL ASSETS
24,126
1,051
9,817
December 31,
2015
$
13,359
1,084
33,604
48,047
83,306
71,545
9,178
535,325
2,072
1,378
10,927
1,757
2,556
13,981
4,338
34,994
94,568
71,436
3,472
802
586,109
2,189
373
10,427
1,943
1,861
14,247
5,107
$
827,528
$
784,410
$
143,206
543,554
$
126,669
539,507
Liabilities
Non-interest-bearing deposits
Interest-bearing deposits
Total deposits
Federal Home Loan Bank advances
Other borrowings
Senior subordinated notes
Junior subordinated debentures
Accrued expenses and other liabilities
Total liabilities
686,760
666,176
37,769
14,860
2,500
7,732
8,855
22,042
11,527
3,500
7,732
8,348
758,476
719,325
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 - 6,000,000 shares
Issued - 1,830,266 shares; Outstanding - 1,525,843 shares
Issued - 1,830,266 shares; Outstanding - 1,576,034 shares
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income (loss), net of tax
Treasury stock, at cost - 304,423 and 254,232 shares, respectively
1,830
Total stockholders' equity
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
-
-
$
7,208
71,025
(741)
(10,270)
1,830
7,100
63,968
96
(7,909)
69,052
65,085
827,528
$
784,410
PSB Holdings, Inc. | www.psbholdingsinc.com
Page 10 of 11
PSB announces December 2016 quarterly earnings of $1.51 per share on net income of $2.3 million
PSB Holdings, Inc.
Average Balances ($000s) and Interest Rates
Quarter ended December 31,
2016
Interest
Avg Bal
Assets
Interest-earning assets:
Loans (1)(2)
Taxable securities
Tax-exempt securities (2)
FHLB stock
Other
$ 591,285
105,281
58,587
1,861
10,422
Total (2)
767,436
Non-interest-earning assets:
Cash and due from banks
Premises and equipment,
net
Cash surrender value ins.
Other assets
Allowance for loan
losses
Total
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand
deposits
Money market deposits
Time deposits
FHLB borrowings
Other borrowings
Senior subordinated notes
Junior sub. debentures
4.38%
2.31%
3.75%
2.57%
0.92%
$ 554,854
98,694
57,409
2,556
17,395
7,712
4.00%
730,908
11,262
11,238
10,405
14,197
9,233
11,021
13,661
8,808
(6,581)
(6,673)
$ 202,034
142,232
176,048
43,910
17,488
2,500
7,732
$
84
75
516
140
63
23
87
0.17%
0.21%
1.17%
1.27%
1.43%
3.66%
4.48%
$ 188,954
144,333
185,544
26,879
11,780
3,500
7,732
988
0.66%
568,722
135,704
8,312
69,992
126,063
7,964
66,214
$ 805,952
$ 768,963
Net interest income
Rate spread
Net yield on interest-earning assets
$
Yield/Rate
5,981
628
579
3
24
4.28%
2.52%
4.00%
0.47%
0.55%
7,215
3.92%
66
71
553
75
61
33
86
0.14%
0.20%
1.18%
1.11%
2.05%
3.74%
4.41%
945
0.66%
$ 768,963
591,944
Non-interest-bearing liabilities:
Demand deposits
Other liabilities
Stockholders' equity
2015
Interest
Avg Bal
6,513
611
552
12
24
$ 805,952
Total
Total
$
Yield/Rate
$
$
$
6,724
3.34%
3.49%
(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%.
6,270
3.26%
3.40%
PSB Holdings, Inc. | www.psbholdingsinc.com
Page 11 of 11
PSB announces December 2016 quarterly earnings of $1.51 per share on net income of $2.3 million
PSB Holdings, Inc.
Average Balances ($000s) and Interest Rates
Year ended December 31,
2016
Interest
Avg Bal
Assets
Interest-earning assets:
Loans (1)(2)
Taxable securities
Tax-exempt securities (2)
FHLB stock
Other
$ 571,673
104,204
57,492
2,007
12,982
Total (2)
748,358
Non-interest-earning assets:
Cash and due from banks
Premises and equipment,
net
Cash surrender value ins.
Other assets
Allowance for loan
losses
Total
Liabilities & stockholders' equity
Interest-bearing liabilities:
Savings and demand
deposits
Money market deposits
Time deposits
FHLB borrowings
Other borrowings
Senior subordinated notes
Junior sub. debentures
4.37%
2.39%
3.86%
1.94%
0.68%
$ 544,247
99,544
55,290
2,556
11,321
29,828
3.99%
712,958
10,759
10,870
10,602
14,099
9,136
10,907
13,448
9,085
(6,448)
(6,573)
$ 200,529
143,224
181,435
38,171
13,681
2,750
7,732
$
327
294
2,147
461
245
103
343
0.16%
0.21%
1.18%
1.21%
1.79%
3.75%
4.44%
$ 190,669
139,791
180,484
32,620
11,165
3,750
7,732
3,920
0.67%
566,211
123,209
7,663
68,112
112,985
7,123
64,376
$ 786,506
$ 750,695
Net interest income
Rate spread
Net yield on interest-earning assets
$
Yield/Rate
23,406
2,548
2,285
13
63
4.30%
2.56%
4.13%
0.51%
0.56%
28,315
3.97%
265
284
2,148
269
242
141
342
0.14%
0.20%
1.19%
0.82%
2.17%
3.76%
4.42%
3,691
0.65%
$ 750,695
587,522
Non-interest-bearing liabilities:
Demand deposits
Other liabilities
Stockholders' equity
2015
Interest
Avg Bal
24,995
2,486
2,220
39
88
$ 786,506
Total
Total
$
Yield/Rate
$
$
$
25,908
3.32%
3.46%
(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%.
24,624
3.32%
3.45%