FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number:
PSB HOLDINGS, INC.
(Exact name of registrant as specified in charter)
WISCONSIN 39-1804877
(State of incorporation) (I.R.S Employer Identification Number)
1905 WEST STEWART AVENUE
WAUSAU, WISCONSIN 54401
(Address of principal executive office)
Registrant's telephone number, including area code: 715-842-2191
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such report), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
The number of common shares outstanding at March 31, 1996 was 902,425.
<PAGE>
PSB HOLDINGS, INC.
FORM 10-Q
QUARTER ENDED MARCH 31, 1996
PAGE NO.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of
Income, Three Months Ended
March 31, 1996 (unaudited) and
March 31, 1995 (unaudited) 1
Condensed Consolidated Balance
Sheets March 31, 1996 (unaudited)
and December 31, 1995 (derived from
audited financial statements) 2
Condensed Consolidated Statements
of Cash Flows Three Months
Ended March 31, 1996 (unaudited)
and March 31, 1995 (unaudited) 3
Notes to Condensed Consolidated
Financial Statements 4
Item 2. Management's Discussion and
Analysis of Financial Condition
and Results of Operations 5
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on form 8-K 9
<PAGE>
PART I. FINANCIAL INFORMATION
<TABLE>
ITEM 1. FINANCIAL STATEMENTS
PSB HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
($ thousands except share data -unaudited) Three Months Ended
March 31,
1996 1996
<S> <C> <C>
Interest Income
Interest and fees on loans $2,868 $2,514
Interest on investment securities
Taxable 544 524
Tax-exempt 137 146
Other interest income 95 26
Total interest income 3,644 3,210
Interest Expenses:
Deposits 1,741 1,388
Short-term borrowings 178 147
Total interest expense 1,919 1,535
Net interest income 1,725 1,675
Provisions for losses on loans 45 75
Net Interest Income After Provision
for Loan Losses 1,680 1,600
Other income:
Service fees 120 130
Insurance commissions 29 7
Net security gains -0- 8
Net gain on other real estate 188 -0-
Other operating income 23 7
Total other income 360 152
Other Expenses
Salaries and related benefits 525 467
Net occupancy expense 181 137
FDIC insurance 1 77
Computer operations 45 48
Other operating expense 292 253
Total other expenses 1,044 982
Income before income taxes 996 770
Provision for income taxes 340 243
Net income $ 656 $ 527
Income per share
Basis: Weighted Average of 902,425
shares in 1996
Weighted Average of 902,425
shares in 1995
Net income per share $ .73 $ .58
</TABLE>
<PAGE>
<TABLE>
PSB HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
<CAPTION>
($ thousands) March 31, December 31,
ASSETS 1996* 1995*
<S> <C> <C>
Cash and cash equivalents $ 6,999 $ 10,868
Federal Funds Sold -0- 5,683
Investment Securities -
Held to Maturity
(Market Value $11,541 & $10,429 11,475 10,333
at 1996 & 1995 respectively)
Available for sale (at fair market
value, cost $38,161 & $34,273 38,168 34,643
at 1996 & 1995 respectively)
Total Loans 127,828 125,325
Allowance for Loan Losses (1,844) (1,781)
Net Loans 125,984 123,544
Bank premises and equipment 3,490 3,445
Other Assets 2,582 2,265
TOTAL ASSETS $188,698 $190,781
LIABILITIES
Noninterest-bearing Deposits $ 22,443 $ 26,560
Interest-bearing Deposits 134,110 133,885
Total Deposits 156,553 160,445
Federal Funds purchased 1,246 -0-
Short-term borrowings 11,758 11,099
Other Liabilities 1,259 1,785
Total liabilities 170,816 173,329
STOCKHOLDERS' EQUITY
Common stock - no-par value, with a stated
value of $2 per share
- 1,000,000 shares authorized
- 902,425 shares issued 1,805 1,805
Additional paid-in capital 5,927 5,927
Retained earnings 10,144 9,488
Net unrealized gain on securities available
for sale, net of deferred income taxes 6 232
Total stockholders' equity 17,882 17,452
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $188,698 $190,781
<FN>
*The consolidated balance sheet at March 31, 1996 is unaudited. The
December 31, 1995 consolidated balance sheet is derived from audited financial
statements.
</TABLE>
<PAGE>
<TABLE>
PSB HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
<CAPTION>
Three Months Ended
March 31,
($ thousands - unaudited) 1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net income $ 656 $ 527
Provision for depreciation, and
net amortization 71 88
Provisions for loan losses 45 75
Changes in operating assets and liabilities:
Gain on sale of other real estate (188)
Other assets (344) (32)
Other liabitities (526) (403)
Net cash provided by (used in) operating activities (286) 255
Cash flows from investing activities:
Proceeds from sale and maturities of:
Held to maturity securities 145 85
Available for sale securities 6,097 4,243
Payment for purchase of
Held to maturity securities (1,291) (368)
Available for sale securities (9,851) (3,190)
Net change in loans (2,485) (2,776)
Net (increase) decrease in
federal funds sold 5,683 (1,562)
Proceeds from sale of other real estate 215 -0-
Capital expenditures (109) (171)
Net cash used in investing activities (1,596) (3,739)
Cash flows from financing activities:
Net increase (decrease) in deposits (3,892) 8,314
Net increase (decrease) in short-term borrowings 659 (300)
Net increase (decrease) in federal funds purchased 1,246 (4,999)
Proceeds from exercise of stock options -0- -0-
Dividends paid -0- -0-
Net cash provided by (used in) financing activities (1,987) 3,015
Net decrease in cash and cash equivalents (3,869) (469)
Cash and cash equivalents at beginning of year 10,868 9,018
Cash and cash equivalents at end of quarter $ 6,999 $ 8,549
Supplemental Cash Flow Information:
Cash paid during the period for : Interest 1,919 1,535
Income taxes 35 17
</TABLE>
<PAGE>
PSB HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying financial statements in the opinion of management
reflect all adjustments which are normal and recurring in nature and
which are necessary for a fair statement of the results for the
periods presented. In all regards, the financial statements have been
presented in accordance with generally accepted accounting principles.
2. Earnings per share of common stock is based on the weighted average
number of common shares outstanding.
3. Refer to notes to the financial statements which appear in the 1995
annual report for the company's accounting policies which are
pertinent to these statements.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(All $ amounts are in thousands, except per share amounts)
RESULTS OF OPERATIONS
TOTAL ASSETS
Total assets have decreased by $2.08 million from December 31, 1995 to
March 31, 1996. This is a decrease of 1.09%. This is a normal occurrence
because December 31 cash and cash equivalents typically consist of
volatile monies resulting from year end activities.
LOANS
Total loans have increased by $2.50 million from December 31, 1995 to
March 31, 1996. This is an increase of 2.00%.
CASH AND INVESTMENTS
As stated, cash was significantly lower on March 31, 1996 compared to
December 31, 1995. Investments, on the other hand increased by $4.67
million or 10.37%.
DEPOSITS
Deposits decreased $3.89 million from December 31, 1995 to March 31, 1996
or 2.42%.
SHORT TERM BORROWINGS
The fed funds position changed from funds sold on December 31, 1995 of
$5.68 million to funds purchased of $1.25 million on March 31, 1996. Most
of the funds sold decrease was rechanneled into investment securities.
Repurchase agreements increased $659,000.
EQUITY
Equity grew by $430,000 or 2.46% due to the following: Net income for the
first three months of $656,000 and a reduction in the "Net Unrealized gain
on securities available for Sale" of $226,000. The reduction in the
unrealized gain is a result of the market prices of the investment
portfolio dropping as of March 31, 1996.
OPERATING DATA SUMMARY
GENERAL
Net interest income for the first quarter of 1996 is $50,000 or 2.99%
greater than it was for the same period in 1995.
NON-INTEREST INCOME
Non-interest income increased by $208,000 from the period ending March 31,
1996 compared to the period ending March 31, 1995. This increase is
attributable to the sale of Other Real Estate in January of 1996. Total
proceeds were $215,000 with a net gain of $188,000.
NON-INTEREST EXPENSE
Non-interest expenses increased 6.31% or $62,000 for the period ending
March 31, 1996 when compared to the period ending March 31, 1995.
Impacting the increase is a significant drop in FDIC premiums. Our
institution is now assessed only the minimum quarterly amount of $500.
Net Occupancy Expense increased $44,000 mainly from our newest branch
office which began operation in October of 1995.
<PAGE>
NET INCOME
Net income for three months of 1996 is 24.47% higher than the same period
in 1995 and earnings per share increased from $.58 to $.73, or 25.86%.
<TABLE>
<CAPTION>
KEY OPERATING RATIOS
(unaudited) Ended March 31, 1996
THREE MONTH PERIOD
1996 1995
<S> <C> <C>
Return on assets (net income divided
by average assets) (1) 1.17% 1.13%
Return on Average Equity (net income
divided by average equity) (1) 12.19% 12.15%
Average Equity to Average Assets 9.23% 9.11%
Interest Rate Spread (difference between
average yield on interest earning assets
and average cost of interest bearing
liabilities) (1) 2.98% 3.22%
Net Interest Margin (net interest income as a
percentage of average interest earning assets (1) 3.83% 4.13%
Non-interest Expense to average assets (1) 2.17% 2.34%
Allowance for loan losses to total loan
at end of period 1.44% 1.42%
<FN>
(1) Annualized
</TABLE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K:
(a) Exhibits required by Item 601 of Regulation S-K.
(27) Financial Data Schedule
(b) Reports on Form 8-K:
None
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PSB HOLDINGS, INC.
May 10, 1995 TODD R. TOPPEN
Todd R. Toppen
Secretary and Controller
(On behalf of the Registrant and as
Principal Financial Officer)
<PAGE>
EXHIBIT INDEX
PURSUANT TO <section>232.102(D), REGULATION S-T
EXHIBIT (27) Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 6,999
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 38,168
<INVESTMENTS-CARRYING> 11,475
<INVESTMENTS-MARKET> 11,541
<LOANS> 127,828
<ALLOWANCE> 1,844
<TOTAL-ASSETS> 188,698
<DEPOSITS> 156,553
<SHORT-TERM> 13,004
<LIABILITIES-OTHER> 1,259
<LONG-TERM> 0
0
0
<COMMON> 1,805
<OTHER-SE> 16,077
<TOTAL-LIABILITIES-AND-EQUITY> 188,698
<INTEREST-LOAN> 2,868
<INTEREST-INVEST> 681
<INTEREST-OTHER> 95
<INTEREST-TOTAL> 3,644
<INTEREST-DEPOSIT> 1,741
<INTEREST-EXPENSE> 1,919
<INTEREST-INCOME-NET> 1,725
<LOAN-LOSSES> 45
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,044
<INCOME-PRETAX> 996
<INCOME-PRE-EXTRAORDINARY> 996
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 656
<EPS-PRIMARY> .73
<EPS-DILUTED> .73
<YIELD-ACTUAL> 3.84
<LOANS-NON> 293
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 2,826
<ALLOWANCE-OPEN> 1,781
<CHARGE-OFFS> 11
<RECOVERIES> 29
<ALLOWANCE-CLOSE> 1,844
<ALLOWANCE-DOMESTIC> 1,844
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
