WAUSAU, Wis., Oct. 26, 2026 (GLOBE NEWSWIRE) -- PSB Holdings, Inc. ("PSB") (OTCQX: PSBQ), the holding company for Peoples State Bank ("Peoples") serving Northcentral and Southeastern Wisconsin reported earnings for the second quarter ending September 30, 2026 of $0.94 per diluted common share on net income of $3.8 million, compared to $0.81 per diluted common share on net income of $3.3 million during the second quarter ending June 30, 2026, and $0.86 per diluted common share on net income of $3.5 million during the third quarter ending September 30, 2025.
PSB's third quarter of 2026 operating results reflected the following changes from the second quarter of 2026: (1) an increase in net interest margin due primarily to lower costing funds; (2) higher provision for credit losses on loans; (3) slightly lower non-interest income; (4) lower non-interest expenses due to a decrease in salary and employee benefits from fewer employees; and (5) slightly lower expenses associated with the merger.
PSB announced on May 19, 2026 that it entered into an Agreement and Plan of Merger with Bank First Corporation ("Bank First"), under which Bank First will acquire 100% of the common stock of PSB in an all-stock transaction. Under the terms of the Agreement and Plan of Merger, each PSB shareholder will have the right to receive 0.3470 of a share of Bank First's common stock in exchange for each share of PSB's common stock. The aggregate consideration is valued at approximately $202.9 million, based on the closing price of Bank First common stock as of May 18, 2026, of $143.66 per share.
"We delivered strong third quarter earnings, supported by an improved net interest margin and additional efficiencies we gained in preparation for our merger with Bank First. We remain on track for closing the merger on December 4, 2026, and have received all required shareholder and regulatory approvals," stated Scott Cattanach, President and CEO.
September 30, 2026, Highlights:
-- Net interest income increased $348,000 to $12.5 million for the quarter
ended September 30, 2026, from $12.1 million for the quarter ended June
30, 2026, due in part to higher average loan balances and lower costs on
time deposits.
-- Noninterest income decreased $92,000 to $2.0 million for the quarter
ended September 30, 2026, compared to $2.1 million the prior quarter,
partially due to lower mortgage banking income.
-- Noninterest expenses decreased $745,000 to $9.0 million during the
quarter ended September 30, 2026 from $9.7 million for the quarter ended
June 30, 2026, reflecting lower salary and benefit plan expenses related
to lower incentive accruals for fiscal 2026 and staff reductions. Merger
expenses were $592,000 for the third quarter ending September 30, 2026
compared to $671,000 for the quarter ended June 30, 2026. The third
quarter ended September 30, 2026 reflects severance expenses totaling
$423,000.
-- Net loans decreased $10 million in the third quarter ended September 30,
2026, to $1.12 billion compared to $1.13 billion at June 30, 2026.
Allowance for credit losses decreased to 1.12% of gross loans.
-- Non-performing assets decreased to 1.02% of total assets at September 30,
2026, compared to 1.08% the previous quarter.
-- Total deposits increased $34.8 million to $1.21 billion at September 30,
2026, from $1.18 billion at June 30, 2026. Core deposits increased $58.6
million and brokered deposits decreased $20.0 million.
-- Return on average tangible common equity was 11.98% for the quarter ended
September 30, 2026 compared to 10.62% the prior quarter and 12.14% in the
year ago quarter. Tangible book value per common share was up 6.68% over
the past year to $30.99 at September 30, 2026, compared to $29.05 at
September 30, 2025.
Balance Sheet and Asset Quality Review
Total assets increased $5.91 million during the third quarter to $1.51 billion at September 30, 2026. Cash and cash equivalents increased $27.11 million to $84.8 million at September 30, 2026, from $57.7 million at June 30, 2026, as funds from new deposits were held in liquid investments. Investment securities available for sale decreased $12.3 million to $152.7 million at September 30, 2026, from $165.0 million one quarter earlier.
Gross loans receivable decreased $11.9 million to $1.16 billion at September 30, 2026, compared to three months earlier. Construction and development loans decreased $14.7 million to $53.4 million at September 30, 2026 and commercial & industrial loans decreased $8.0 million to $149.9 million over the three month period. Residential real estate loans decreased $3.1 million from the prior quarter to $328.5 million. Partially offsetting these loan decreases, commercial real estate loans increased $13.8 million to $603.8 million at September 30, 2026, compared to three months earlier. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 56.8% of gross loans, followed by residential real estate loans at 28.4% of gross loans, commercial non-real estate loans at 14.3% and consumer loans at 0.5%.
The allowance for credit losses decreased to 1.12% of gross loans at September 30, 2026 while annualized net charge-offs to average loans were 0.53% for the quarter ended September 30, 2026. The elevated charge-offs for the quarter ended September 30, 2026 relates to a charge-off of $1.1 million on one non-accruing equipment dealership loan. Non-performing assets decreased to 1.02% of total assets at September 30, 2026, down from 1.08% at June 30, 2026. Approximately 69% of all non-performing assets consisted of five lending relationships.
Total deposits increased $34.8 million from the prior quarter to $1.21 billion. Growth in deposits was led by interest-bearing demand and savings deposits, which increased $33.0 million during the third quarter followed by an increase in non-interest bearing demand deposits of $24.8 million and an increase in money market deposits of $8.6 million during the third quarter. Partially offsetting the increase in these core deposits was a decline in retail time and local deposits of $11.5 million and a decline in brokered deposits of $20.0 million.
FHLB advances decreased by $23.0 million to $128.5 million at September 30, 2026 from $151.5 million at June 30, 2026.
Tangible stockholder equity as a percentage of total tangible assets was 8.76% at September 30, 2026, compared to 8.87% at June 30, 2026, and 8.34% at September 30, 2025, respectively.
Tangible net book value per common share increased $1.94 to $30.99 at September 30, 2026, compared to $29.05 one year earlier, an increase of 6.7% after dividends totaling $0.88 per share were paid to shareholders. Relative to the prior quarter's tangible book value per common share of $31.27, tangible net book value per common share decreased primarily due to an increase in accumulated other comprehensive losses related to rising interest rates and the payment of dividends offset by earnings. The accumulated other comprehensive loss on the investment portfolio increased to $17.3 million at September 30, 2026 compared to $13.0 million one quarter earlier and $14.2 million at September 30, 2025.
Operations Review
Net interest income increased to $12.5 million (on a net margin of 3.48%) for the third quarter of 2026, from $12.1 million (on a net margin of 3.44%) for the second quarter of 2026, and increased from $11.3 million (on a net margin of 3.16%) for the third quarter of 2025. Higher net interest income in the current period primarily relates to a decrease in funding costs during the third quarter.
Overall funding costs decreased 5 basis points to 2.81% during the third quarter of 2026 from 2.86% the prior period. Relative to one year earlier, funding costs were down 20 basis points while yields on assets increased 11 basis points. The decrease in funding costs was due to lower deposit costs and lower costs related to FHLB advances. Deposits costs decreased 8 basis points to 1.92% for the quarter ended September 30, 2026, from 2.00% the prior quarter. FHLB advance costs declined 2 basis points to 4.04% for the second quarter from 4.06% the prior quarter.
Overall earning-asset yields declined during the current quarter due to lower yields on loans and investment securities. Loan yields declined 3 basis points to 6.10% for the quarter ended September 30, 2026 from 6.13% the prior quarter. Taxable security yields were 3.12% for the quarter ended September 30, 2026, compared to 3.22% for the quarter ended June 30, 2026, while a smaller balance of tax-exempt security yields decreased to 3.33% for the quarter ended September 30, 2026 from 3.34% the prior quarter.
Total noninterest income decreased $92,000 during the third quarter of 2026 to $2.0 million from $2.1 million in the second quarter. The third quarter reflects increases in investment and insurance sales commissions that are offset by a decline in mortgage banking income.
Noninterest expenses decreased $0.7 million to $9.0 million for the third quarter of 2026, compared to $9.7 million for the second quarter, and increased $0.1 million from $8.8 million for the third quarter of 2025. The third quarter noninterest expense levels were lower than the prior quarter due to slightly lower expenses associated with the merger which include severance payments and professional fees. Salary and benefits expenses decreased $548,000 due to lower incentive accruals and staff reductions.
Income taxes increased $58,000 during the third quarter to $892,000 from $834,000 one quarter earlier. The effective tax rate for the quarter ended September 30, 2026 was 18.5% compared to 19.7% for the second quarter ended June 30, 2026 and 16.7% for the third quarter ended September 30, 2025.
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. 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 www.psbholdingsinc.com.
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
September 30, June 30, and March 31, 2026, and September
30, 2025, unaudited, December 31, 2025 derived from
audited financial statements
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
(dollars in thousands, except per
share data) 2026 2026 2026 2025 2025
Assets
Cash and due from banks $ 14,359 $ 17,321 $ 28,053 $ 19,697 $ 14,221
Interest-bearing deposits 2,324 3,283 1,703 2,262 3,630
Federal funds sold 68,099 37,073 29,755 7,916 19,641
-------------------------------------- --------- --------- --------- --------- ---------
Cash and cash equivalents 84,782 57,677 59,511 29,875 37,492
Securities available for sale (at fair
value) 152,671 165,006 171,107 184,265 190,709
Securities held to maturity (fair
values of $64,537, $71,765, $72,485,
$76,671 and $76,104 respectively) 76,362 76,718 78,826 81,511 82,195
Equity securities 2,922 2,913 2,904 2,892 2,885
Loans held for sale 1,598 - 652 180 145
Loans receivable, net (allowance for
credit losses of $12,675, $13,447,
$13,131, $12,605 and $12,686
respectively) 1,123,604 1,134,370 1,116,089 1,096,035 1,115,137
Accrued interest receivable 4,779 4,885 5,094 5,035 5,023
Foreclosed assets 137 138 - - -
Premises and equipment, net 12,605 12,887 13,160 12,972 13,355
Mortgage servicing rights, net 1,980 1,974 1,978 1,689 1,685
Federal Home Loan Bank stock (at cost) 8,424 8,374 7,995 8,090 8,641
Cash surrender value of bank-owned
life insurance 24,322 24,139 24,453 25,425 25,242
Core deposit intangible 229 247 266 287 309
Goodwill 3,565 3,565 3,565 3,495 3,495
Other assets 10,549 9,725 9,784 9,721 10,420
TOTAL ASSETS $1,508,529 $1,502,618 $1,495,384 $1,461,472 $1,496,733
====================================== ========= ========= ========= ========= =========
Liabilities
Non-interest-bearing deposits $ 315,361 $ 290,604 $ 281,947 $ 278,302 $ 278,615
Interest-bearing deposits 897,616 887,579 905,082 898,729 910,571
Total deposits 1,212,977 1,178,183 1,187,029 1,177,031 1,189,186
Federal Home Loan Bank advances 128,450 151,450 136,950 112,950 140,950
Other borrowings - 2,447 4,119 5,397 6,062
Senior subordinated notes 4,793 4,791 4,789 4,788 4,786
Junior subordinated debentures 13,202 13,177 13,151 13,126 13,100
Allowance for credit losses on
unfunded commitments 492 492 492 542 622
Accrued expenses and other liabilities 12,971 15,323 14,986 15,967 13,651
Total liabilities 1,372,885 1,365,863 1,361,516 1,329,801 1,368,357
-------------------------------------- --------- --------- --------- --------- ---------
Stockholders' equity
Preferred stock - no par value:
Authorized - 30,000 shares; Issued
- 7,200 shares
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 - 4,022,731, 4,021,558,
4,020,508, 4,023,874 and 4,040,538
shares, respectively 1,830 1,830 1,830 1,830 1,830
Additional paid-in capital 8,854 8,801 8,732 8,727 8,707
Retained earnings 158,798 155,700 153,146 150,556 148,029
Accumulated other comprehensive income
(loss), net of tax (17,297) (13,016) (13,264) (13,000) (14,166)
Treasury stock, at cost - 1,468,067,
1,469,240, 1,470,290, 1,466,924 and
1,450,260 shares, respectively (23,741) (23,760) (23,776) (23,642) (23,224)
Total stockholders' equity 135,644 136,755 133,868 131,671 128,376
-------------------------------------- --------- --------- --------- --------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $1,508,529 $1,502,618 $1,495,384 $1,461,472 $1,496,733
====================================== ========= ========= ========= ========= =========
PSB Holdings, Inc.
Consolidated Statements of Income
Quarter Ended Nine Months Ended
Sep. Sep.
(dollars in thousands, 30, Jun. 30, Mar. 31, Dec. 31, 30, September
except per share data -
unaudited) 2026 2026 2026 2025 2025 2026 2025
Interest and dividend
income:
Loans, including fees $17,517 $17,370 $17,066 $16,744 $16,745 $51,953 $49,037
Securities:
Taxable 1,343 1,428 1,586 1,659 1,645 4,357 4,852
Tax-exempt 459 467 484 495 500 1,410 1,523
Other interest and
dividends 664 508 316 582 717 1,488 1,394
Total interest
and dividend
income 19,983 19,773 19,452 19,480 19,607 59,208 56,806
----------------------- ------ ------ ------ ------ ------ ------ ------
Interest expense:
Deposits 5,735 5,836 5,898 5,976 6,207 17,469 18,025
FHLB advances 1,429 1,478 1,344 1,428 1,707 4,251 5,398
Other borrowings 21 13 25 40 45 59 140
Senior subordinated
notes 59 58 59 59 59 176 176
Junior subordinated
debentures 248 245 242 248 247 735 745
Total interest
expense 7,492 7,630 7,568 7,751 8,265 22,690 24,484
----------------------- ------ ------ ------ ------ ------ ------ ------
Net interest income 12,491 12,143 11,884 11,729 11,342 36,518 32,322
Provision for credit
losses 725 325 475 275 138 1,525 365
Net interest income
after provision for
credit losses 11,766 11,818 11,409 11,454 11,204 34,993 31,957
----------------------- ------ ------ ------ ------ ------ ------ ------
Noninterest income:
Service fees 436 424 393 401 363 1,253 1,087
Mortgage banking
income 354 427 405 413 363 1,186 1,024
Investment and
insurance sales
commissions 435 382 437 520 345 1,254 1,006
Net loss on sale of
securities - - (502) - - (502) (1)
Increase in cash
surrender value of
life insurance 183 178 175 182 176 536 509
Life insurance death
benefit - 4 489 - - 493 -
Other noninterest
income 620 705 923 565 678 2,248 2,262
Total noninterest
income 2,028 2,120 2,320 2,081 1,925 6,468 5,887
----------------------- ------ ------ ------ ------ ------ ------ ------
Noninterest expense:
Salaries and employee
benefits 5,059 5,607 5,948 5,159 5,446 16,614 15,576
Occupancy and
facilities 689 697 800 712 712 2,186 2,217
Loss (gain) on
foreclosed assets 9 (1) (36) (23) 1 (28) (57)
Data processing and
other office
operations 1,054 1,129 1,119 1,188 1,122 3,302 3,512
Advertising and
promotion 161 227 189 177 138 577 456
Core deposit
intangible
amortization 18 19 21 21 22 58 68
Expenses associated
with merger 592 671 120 26 - 1,383 26
Other noninterest
expenses 1,377 1,355 1,637 1,376 1,365 4,369 4,170
Total noninterest
expense 8,959 9,704 9,798 8,636 8,806 28,461 25,968
----------------------- ------ ------ ------ ------ ------ ------ ------
Income before provision
for income taxes 4,835 4,234 3,931 4,899 4,323 13,000 11,876
Provision for income
taxes 892 834 495 883 720 2,221 1,945
Net income $ 3,943 $ 3,400 $ 3,436 $ 4,016 $ 3,603 $10,779 $ 9,931
======================= ====== ====== ====== ====== ====== ====== ======
Preferred stock
dividends declared $ 122 $ 122 $ 122 $ 122 $ 122 $ 366 $ 366
Net income available to
common shareholders $ 3,821 $ 3,278 $ 3,314 $ 3,894 $ 3,481 $10,413 $ 9,565
======================= ====== ====== ====== ====== ====== ====== ======
Basic earnings per
common share $ 0.95 $ 0.82 $ 0.82 $ 0.97 $ 0.86 $ 2.59 $ 2.35
======================= ====== ====== ====== ====== ====== ====== ======
Diluted earnings per
common share $ 0.94 $ 0.81 $ 0.82 $ 0.97 $ 0.86 $ 2.57 $ 2.35
======================= ====== ====== ====== ====== ====== ====== ======
PSB Holdings, Inc.
Quarterly Financial Summary
(dollars in thousands,
except per share data) Quarter ended
------------------------------------------------------------------------------
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
Earnings and dividends: 2026 2026 2026 2025 2025
Interest income $ 19,983 $ 19,773 $ 19,452 $ 19,480 $ 19,607
Interest expense $ 7,492 $ 7,630 $ 7,568 $ 7,751 $ 8,265
Net interest income $ 12,491 $ 12,143 $ 11,884 $ 11,729 $ 11,342
Provision for credit
losses $ 725 $ 325 $ 475 $ 275 $ 138
Other noninterest
income $ 2,028 $ 2,120 $ 2,320 $ 2,081 $ 1,925
Other noninterest
expense $ 8,959 $ 9,704 $ 9,798 $ 8,636 $ 8,806
Net income available
to common
shareholders $ 3,821 $ 3,278 $ 3,314 $ 3,894 $ 3,481
Basic earnings per
common share (3) $ 0.95 $ 0.82 $ 0.82 $ 0.97 $ 0.86
Diluted earnings per
common share (3) $ 0.94 $ 0.81 $ 0.82 $ 0.97 $ 0.86
Dividends declared
per common share
(3) $ 0.18 $ 0.18 $ 0.18 $ 0.34 $ -
Tangible net book
value per common
share (4) $ 30.99 $ 31.27 $ 30.55 $ 29.99 $ 29.05
Average common
shares outstanding 4,021,762 4,020,787 4,021,327 4,028,368 4,041,393
Balance sheet - average
balances:
Loans receivable,
net of allowances
for credit loss $1,126,958 $1,124,806 $1,118,837 $1,107,114 $1,111,055
Assets $1,500,877 $1,491,283 $1,478,103 $1,501,135 $1,510,272
Deposits $1,185,147 $1,172,036 $1,175,510 $1,199,363 $1,191,002
Stockholders' equity $ 137,966 $ 135,416 $ 134,946 $ 131,606 $ 125,342
Performance ratios:
Return on average
assets (1) 1.04% 0.91% 0.94% 1.06% 0.95%
Return on average
common
stockholders'
equity (1) 11.59% 10.25% 10.52% 12.42% 11.69%
Return on average
tangible common
stockholders'
equity (1)(4) 11.98% 10.62% 10.90% 12.86% 12.14%
Net loan charge-offs
to average loans
(1) 0.53% 0.00% 0.00% 0.16% 0.00%
Nonperforming loans
to gross loans 1.34% 1.40% 1.44% 1.56% 1.51%
Nonperforming assets
to total assets 1.02% 1.08% 1.09% 1.18% 1.13%
Allowance for credit
losses to gross
loans 1.12% 1.17% 1.16% 1.14% 1.12%
Nonperforming assets
to tangible equity
plus the allowance
for credit losses
(4) 11.30% 11.80% 12.13% 13.10% 13.17%
Net interest rate
margin (1)(2) 3.48% 3.44% 3.45% 3.28% 3.16%
Net interest rate
spread (1)(2) 2.73% 2.72% 2.69% 2.53% 2.42%
Service fee revenue
as a percent of
average demand
deposits (1) 0.59% 0.63% 0.58% 0.55% 0.52%
Noninterest income
as a percent of
gross revenue 9.21% 9.68% 10.66% 9.65% 8.94%
Efficiency ratio (2) 61.10% 67.35% 68.24% 61.82% 65.47%
Noninterest expenses
to average assets
(1) 2.37% 2.61% 2.69% 2.28% 2.31%
Average
stockholders'
equity less
accumulated other
comprehensive
income (loss) to
average assets 10.10% 9.87% 9.93% 9.59% 9.20%
Tangible equity to
tangible assets
(4) 8.76% 8.87% 8.72% 8.77% 8.34%
Stock price
information:
High $ 54.00 $ 50.50 $ 28.50 $ 26.30 $ 26.00
Low $ 49.05 $ 27.20 $ 26.10 $ 24.34 $ 23.30
Last trade value at
quarter-end $ 51.21 $ 50.50 $ 27.74 $ 26.10 $ 25.50
(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
Jun. Mar. Dec.
Sep. 30, 30, 31, 31, Sep. 30,
(dollars in thousands
- unaudited) 2026 2026 2026 2025 2025
Net income $ 3,943 $3,400 $3,436 $4,016 $3,603
---------------------- ------ ----- ----- ----- -----
Other comprehensive
income, net of tax:
Unrealized gain
(loss) on
securities
available for
sale (4,525) 118 (711) 1,065 1,550
Reclassification
adjustment for
security loss
included in net
income - - 396 - -
Accretion of
unrealized loss
included in net
income on
securities
available for sale
deferred tax
adjustment for
Wisconsin Act 19 (24) (32) (83) - (26)
Amortization of
unrealized loss
included in net
income on
securities
available for sale
transferred to
securities held to
maturity 93 93 91 90 90
Unrealized gain
(loss) on interest
rate swap 174 67 43 18 (2)
Reclassification
adjustment of
interest rate swap
settlements
included in
earnings 1 1 - (7) (15)
Other comprehensive
income (loss) (4,281) 247 (264) 1,166 1,597
---------------------- ------ ----- ----- ----- -----
Comprehensive income
(loss) $ (338) $3,647 $3,172 $5,182 $5,200
====================== ====== ===== ===== ===== =====
PSB Holdings, Inc.
Nonperforming Assets as of:
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
----------- ----------- ----------- ----------- -----------
(dollars in thousands) 2026 2026 2026 2025 2025
Nonaccrual loans
(excluding restructured
loans) $15,071 $15,242 $15,438 $16,436 $16,560
Nonaccrual restructured
loans 1 589 6 7 10
Restructured loans not
on nonaccrual 139 277 863 865 415
Accruing loans past due
90 days or more - - - - -
------------------------ ------ ------ ------ ------ ------
Total nonperforming
loans 15,211 16,108 16,307 17,308 16,985
Other real estate owned 137 138 - - -
Total nonperforming
assets $15,348 $16,246 $16,307 $17,308 $16,985
======================== ====== ====== ====== ====== ======
Nonperforming loans as a
% of gross loans
receivable 1.34% 1.40% 1.44% 1.56% 1.51%
======================== ====== ====== ====== ====== ======
Total nonperforming
assets as a % of total
assets 1.02% 1.08% 1.09% 1.18% 1.13%
======================== ====== ====== ====== ====== ======
Allowance for credit
losses as a % of
nonperforming loans 83.33% 83.48% 80.52% 72.83% 74.69%
======================== ====== ====== ====== ====== ======
PSB Holdings, Inc.
Nonperforming Assets >= $1,000,000 net book value
before specific reserves
At September 30, 2026
(dollars in thousands)
Gross Specific
Collateral Description Asset Type Principal Reserves
------------------------------------ ----------- ----------- ----------
Real estate - Non-Owner Occupied
Rental Properties Nonaccrual 2,639 -
Real estate - Recreational Facility Nonaccrual 3,497 204
Real estate - Equipment Dealership Nonaccrual 1,194 250
Real estate - Wood Products Nonaccrual 1,674 376
Real estate - Commercial Building Nonaccrual 1,627 54
Total listed nonperforming assets $10,631 $ 884
================================================= ====== =====
Total bank wide nonperforming assets $15,348 $1,394
================================================= ====== =====
Listed assets as a % of total nonperforming
assets 69% 63%
================================================= ====== =====
PSB Holdings, Inc.
Loan Composition by Collateral Type
Quarter-ended (dollars Sep 30, Jun 30, Mar 31, Dec 31,
in thousands) 2026 2026 2026 2025 Sep 30, 2025
----------------------- ----------- ----------- ----------- ----------- -------------
Commercial:
Commercial and
industrial $ 149,925 $ 157,903 $ 143,572 $ 139,479 $ 137,199
Agriculture 7,680 7,215 9,188 11,463 12,443
Municipal 8,024 8,258 8,481 11,317 8,361
----------------------- --------- --------- --------- --------- ---------
Total Commercial 165,629 173,376 161,241 162,259 158,003
----------------------- --------- --------- --------- --------- ---------
Commercial Real Estate:
Commercial real
estate 603,778 590,027 578,655 551,899 569,382
Construction and
development 53,422 68,107 70,757 70,574 81,278
----------------------- --------- --------- --------- --------- ---------
Total Commercial Real
Estate 657,200 658,134 649,412 622,473 650,660
----------------------- --------- --------- --------- --------- ---------
Residential real
estate:
Residential 250,152 253,189 251,356 259,573 263,791
Construction and
development 29,394 29,744 34,540 36,596 37,475
HELOC 48,978 48,682 44,545 44,219 41,661
----------------------- --------- --------- --------- --------- ---------
Total Residential Real
Estate 328,524 331,615 330,441 340,388 342,927
----------------------- --------- --------- --------- --------- ---------
Consumer installment 5,124 5,248 4,648 5,053 4,801
----------------------- --------- --------- --------- --------- ---------
Subtotals - Gross loans 1,156,477 1,168,373 1,145,742 1,130,173 1,156,391
Loans in process of
disbursement (20,713) (21,149) (17,148) (22,178) (29,170)
----------------------- --------- --------- --------- --------- ---------
Subtotals - Disbursed
loans 1,135,764 1,147,224 1,128,594 1,107,995 1,127,221
Net deferred loan costs 515 593 626 645 602
Allowance for credit
losses (12,675) (13,447) (13,131) (12,605) (12,686)
----------------------- --------- --------- --------- --------- ---------
Total loans receivable $1,123,604 $1,134,370 $1,116,089 $1,096,035 $1,115,137
======================= ========= ========= ========= ========= =========
PSB Holdings, Inc.
Selected Commercial Real Estate Loans by Purpose
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
--------------------- --------------------- --------------------- --------------------- ----------------------
(dollars in thousands) 2026 2026 2026 2025 2025
----------------------- -------------- ---- -------------- ---- -------------- ---- -------------- ---- ------------- ------
% of % of % of % of % of
Total Portfolio Total Portfolio Total Portfolio Total Portfolio Total Portfolio
Exposure (1) Exposure (1) Exposure (1) Exposure (1) Exposure (1)
-------- ----------- -------- ----------- -------- ----------- -------- ----------- -------- ------------
Multi Family $129,365 12.3% $127,983 12.3% $134,236 12.9% $145,717 14.3% $141,896 13.5%
Industrial and
Warehousing 119,540 11.4 120,116 11.6 119,427 11.5 101,581 9.9 100,712 9.6
Retail 28,501 2.7 28,468 2.7 27,948 2.7 27,756 2.7 27,889 2.7
Hotels 27,044 2.6 24,839 2.4 25,080 2.4 25,949 2.6 25,677 2.4
Office 3,972 0.4 4,034 0.4 4,097 0.4 7,028 0.7 7,176 0.7
(1) Percentage of commercial and commercial real estate
portfolio and commitments.
PSB Holdings, Inc.
Deposit Composition
Insured and
Collateralized
Deposits September 30, June 30, March 31, December 31, September 30,
--------------------- --------------------- --------------------- --------------------- ---------------------
(dollars in thousands) 2026 2026 2026 2025 2025
----------------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ % $ % $ % $ % $ %
---------- --------- ---------- --------- ---------- --------- ---------- --------- ---------- ---------
Non-interest bearing
demand $ 231,406 19.0% $ 226,134 19.1% $ 221,921 18.5% $ 225,025 19.1% $ 227,448 19.1%
Interest-bearing demand
and savings 344,163 28.4% 313,909 26.7% 321,604 27.1% 323,739 27.5% 307,505 25.8%
Money market deposits 142,930 11.7% 141,443 12.0% 146,655 12.4% 142,946 12.1% 158,455 13.3%
Retail and local time
deposits <= $250 146,566 12.1% 154,330 13.1% 157,898 13.3% 163,398 13.9% 163,446 13.7%
----------------------- --------- ----- --------- ----- --------- ----- --------- ----- --------- -----
Total core deposits 865,065 71.2% 835,816 70.9% 848,078 71.3% 855,108 72.6% 856,854 71.9%
Retail and local time
deposits > $250 24,000 2.0% 25,250 2.1% 26,500 2.2% 28,000 2.4% 29,000 2.5%
Broker & national time
deposits <= $250 748 0.1% 748 0.1% 748 0.1% 748 0.1% 748 0.1%
Broker & national time
deposits > $250 29,779 2.5% 49,788 4.2% 54,191 4.6% 62,493 5.3% 67,493 5.7%
----------------------- --------- ----- --------- ----- --------- ----- --------- ----- --------- -----
Totals $ 919,592 75.8% $ 911,602 77.3% $ 929,517 78.2% $ 946,349 80.4% $ 954,095 80.2%
======================= ========= ===== ========= ===== ========= ===== ========= ===== ========= =====
PSB Holdings, Inc.
Deposit Composition
Uninsured Deposits September 30, June 30, March 31, December 31, September 30,
--------------------- --------------------- --------------------- --------------------- ---------------------
(dollars in thousands) 2026 2026 2026 2025 2025
----------------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ % $ % $ % $ % $ %
---------- --------- ---------- --------- ---------- --------- ---------- --------- ---------- ---------
Non-interest bearing
demand $ 83,955 6.9% $ 64,470 5.5% $ 60,026 5.1% $ 53,277 4.5% $ 51,167 4.3%
Interest-bearing demand
and savings 20,817 1.7% 18,073 1.5% 18,533 1.6% 17,683 1.5% 18,644 1.6%
Money market deposits 141,312 11.7% 134,223 11.4% 128,415 10.8% 110,501 9.4% 117,184 9.9%
Retail and local time
deposits <= $250 - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
----------------------- --------- ----- --------- ----- --------- ----- --------- ----- --------- -----
Total core deposits 246,084 20.3% 216,766 18.4% 206,974 17.5% 181,461 15.4% 186,995 15.8%
Retail and local time
deposits > $250 47,301 3.9% 49,815 4.3% 50,538 4.3% 49,221 4.2% 48,096 4.0%
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 $ 293,385 24.2% $ 266,581 22.7% $ 257,512 21.8% $ 230,682 19.6% $ 235,091 19.8%
======================= ========= ===== ========= ===== ========= ===== ========= ===== ========= =====
PSB Holdings, Inc.
Deposit Composition
Total Deposits September 30, June 30, March 31, December 31, September 30,
--------------------- --------------------- --------------------- --------------------- ---------------------
(dollars in thousands) 2026 2026 2026 2025 2025
----------------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ % $ % $ % $ % $ %
---------- --------- ---------- --------- ---------- --------- ---------- --------- ---------- ---------
Non-interest bearing
demand $ 315,361 25.9% $ 290,604 24.6% $ 281,947 23.6% $ 278,302 23.6% $ 278,615 23.4%
Interest-bearing demand
and savings 364,980 30.1% 331,982 28.2% 340,137 28.7% 341,422 29.0% 326,149 27.4%
Money market deposits 284,242 23.4% 275,666 23.4% 275,070 23.2% 253,447 21.5% 275,639 23.2%
Retail and local time
deposits <= $250 146,566 12.1% 154,330 13.1% 157,898 13.3% 163,398 13.9% 163,446 13.7%
----------------------- --------- ----- --------- ----- --------- ----- --------- ----- --------- -----
Total core deposits 1,111,149 91.5% 1,052,582 89.3% 1,055,052 88.8% 1,036,569 88.0% 1,043,849 87.7%
Retail and local time
deposits > $250 71,301 5.9% 75,065 6.4% 77,038 6.5% 77,221 6.6% 77,096 6.5%
Broker & national time
deposits <= $250 748 0.1% 748 0.1% 748 0.1% 748 0.1% 748 0.1%
Broker & national time
deposits > $250 29,779 2.5% 49,788 4.2% 54,191 4.6% 62,493 5.3% 67,493 5.7%
----------------------- --------- ----- --------- ----- --------- ----- --------- ----- --------- -----
Totals $1,212,977 100.0% $1,178,183 100.0% $1,187,029 100.0% $1,177,031 100.0% $1,189,186 100.0%
======================= ========= ===== ========= ===== ========= ===== ========= ===== ========= =====
PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)
Quarter ended September 30, 2026 Quarter ended June 30, 2026 Quarter ended September 30, 2025
--------------------------------- --------------------------------- ---------------------------------
Average Yield / Average Yield / Average Yield /
Balance Interest Rate Balance Interest Rate Balance Interest Rate
----------- ---------- -------- ----------- ---------- -------- ----------- ---------- --------
Assets
Interest-earning
assets:
Loans (1)(2) $1,140,312 $ 17,539 6.10% $1,138,074 $ 17,392 6.13% $1,123,665 $ 16,796 5.93%
Taxable securities 170,836 1,343 3.12% 177,864 1,428 3.22% 193,277 1,645 3.38%
Tax-exempt
securities (2) 69,150 581 3.33% 70,873 591 3.34% 75,419 633 3.33%
FHLB stock 8,412 178 8.40% 8,227 170 8.29% 9,182 201 8.68%
Other 51,497 486 3.74% 36,217 338 3.74% 45,649 516 4.48%
--------------------- --------- ------ ---- --------- ------ ---- --------- ------ ----
Total (2) 1,440,207 20,127 5.54% 1,431,255 19,919 5.58% 1,447,192 19,791 5.43%
------ ---- ------ ---- ------ ----
Non-interest-earning
assets:
Cash and due from
banks 16,552 15,689 16,122
Premises and
equipment, net 12,784 13,084 13,377
Cash surrender
value ins 24,208 24,026 25,130
Other assets 20,480 20,508 21,061
Allowance for
credit losses (13,354) (13,268) (12,610)
--------------------- --------- --------- ---------
Total $1,500,877 $1,491,294 $1,510,272
===================== ========= ========= =========
Liabilities &
stockholders' equity
Interest-bearing
liabilities:
Savings and demand
deposits $ 350,238 $ 1,549 1.75% $ 338,948 $ 1,508 1.78% $ 320,732 $ 1,428 1.77%
Money market
deposits 278,393 1,859 2.65% 276,290 1,783 2.59% 281,189 1,746 2.46%
Time deposits 264,974 2,327 3.48% 286,959 2,545 3.56% 310,441 3,033 3.88%
FHLB borrowings 140,488 1,429 4.04% 145,927 1,478 4.06% 154,211 1,707 4.39%
Other borrowings 4,181 21 1.99% 3,820 13 1.37% 6,280 45 2.84%
Senior sub. notes 4,792 59 4.88% 4,790 58 4.86% 4,785 59 4.89%
Junior sub.
debentures 13,190 248 7.46% 13,164 245 7.47% 13,088 247 7.49%
--------------------- --------- ------ ---- --------- ------ ---- --------- ------ ----
Total 1,056,256 7,492 2.81% 1,069,898 7,630 2.86% 1,090,726 8,265 3.01%
------ ---- ------ ---- ------ ----
Non-interest-bearing
liabilities:
Demand deposits 291,542 269,839 278,640
Other liabilities 15,113 16,141 15,564
Stockholders'
equity 137,966 135,416 125,342
--------------------- --------- --------- ---------
Total $1,500,877 $1,491,294 $1,510,272
===================== ========= ========= =========
Net interest income $ 12,635 $ 12,289 $ 11,526
===================== =========== ====== =========== ====== =========== ======
Rate spread 2.73% 2.72% 2.42%
===================== =========== ========== ==== =========== ========== ==== =========== ========== ====
Net yield on
interest-earning
assets 3.48% 3.44% 3.16%
===================== ========= ========== ==== =========== ========== ==== =========== ========== ====
(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)
Nine months ended September 30, Nine months ended September 30,
2026 2025
---------------------------------- ----------------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
----------- ---------- --------- ----------- ---------- ---------
Assets
Interest-earning
assets:
Loans (1)(2) $1,136,751 $ 52,023 6.12% $1,117,079 $ 49,183 5.89%
Taxable securities 179,407 4,357 3.25% 195,191 4,852 3.32%
Tax-exempt
securities (2) 71,164 1,785 3.35% 77,144 1,928 3.34%
FHLB stock 8,146 530 8.70% 9,067 608 8.97%
Other 34,123 958 3.75% 23,193 786 4.53%
--------------------- --------- ------ ---- --------- ------ ----
Total (2) 1,429,591 59,653 5.58% 1,421,674 57,357 5.39%
------ ---- ------ ----
Non-interest-earning
assets:
Cash and due from
banks 15,989 15,970
Premises and
equipment, net 12,941 13,543
Cash surrender
value ins 24,487 24,963
Other assets 20,348 21,161
Allowance for
credit losses (13,188) (12,477)
--------------------- --------- ---------
Total $1,490,168 $1,484,834
===================== ========= =========
Liabilities & stockholders' equity
Interest-bearing
liabilities:
Savings and demand
deposits $ 344,099 $ 4,624 1.80% $ 325,470 $ 4,445 1.83%
Money market
deposits 272,210 5,259 2.58% 274,520 5,003 2.44%
Time deposits 282,862 7,586 3.59% 291,490 8,577 3.93%
FHLB borrowings 138,403 4,251 4.11% 164,047 5,398 4.40%
Other borrowings 4,257 59 1.85% 7,148 140 2.62%
Senior sub. notes 4,790 176 4.91% 4,784 176 4.92%
Junior sub.
debentures 13,164 735 7.47% 13,062 745 7.63%
--------------------- --------- ------ ---- --------- ------ ----
Total 1,059,785 22,690 2.86% 1,080,521 24,484 3.03%
------ ---- ------ ----
Non-interest-bearing liabilities:
Demand deposits 278,565 266,566
Other liabilities 15,875 15,358
Stockholders'
equity 135,943 122,389
--------------------- --------- ---------
Total $1,490,168 $1,484,834
===================== ========= =========
Net interest income $ 36,963 $ 32,873
===================== =========== ====== =========== ======
Rate spread 2.72% 2.36%
===================== =========== ========== ==== =========== ========== ====
Net yield on interest-earning
assets 3.46% 3.09%
================================== ========== ==== =========== ========== ====
(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
InvestorRelations@bankpeoples.com
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