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, 2000
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: 0-26480
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, 2000 was 872,967.
<PAGE>
PSB HOLDINGS, INC.
FORM 10-Q
QUARTER ENDED MARCH 31, 2000
PAGE NO.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of
Income, Three Months Ended
March 31, 2000 (unaudited) and
March 31, 1999 (unaudited) 1
Condensed Consolidated Balance
Sheets March 31, 2000 (unaudited)
and December 31, 1999 (derived from
audited financial statements) 2
Condensed Consolidated Statements
of Cash Flows Three Months Ended
March 31, 2000 (unaudited)
and March 31, 1999 (unaudited) 3
Independent Accountant's Review Report 4
Notes to Condensed Consolidated
Financial Statements 5
Item 2. Management's Discussion and
Analysis of Financial Condition
and Results of Operations 9
Item 3. Quantitative and Qualitative Disclosures
About Market Risk 14
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 15
Item 2. Changes in Securities 15
Item 3. Defaults Upon Senior Securities 15
Item 4. Submission of Matters to Vote of
Securities Holders 15
Item 5. Other Information 15
Item 6. Exhibits and Reports on form 8-K 15
-i-
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PSB HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
($ thousands except share data - unaudited) Three Months Ended
March 31
2000 1999
<S> <C> <C>
Interest income
Interest and fees on loans 4,019 3,267
Interest on investment securities
Taxable 718 711
Tax-exempt 153 168
Other interest income 17 33
Total interest income 4,907 4,179
Interest expense:
Deposits 2,057 1,888
Short-term borrowings 323 81
Long-term borrowings 196 81
Total interest expense 2,576 2,050
Net interest income 2,331 2,129
Provision for losses on loans 150 75
Net interest income after provision for loan losses 2,181 2,054
Non-interest income:
Service fees 160 162
Net realized gain on sale of premises and equipment 57 -0-
Gain on sale of loans 4 92
Investment sales commissions 46 27
Other operating income 60 46
Total non-interest income 327 327
Non-interest expenses
Salaries and related benefits 1,036 758
Occupancy 234 215
Data processing and other office operations 109 108
Advertising and promotion 29 49
Director compensation and benefits 38 36
Other operating 252 261
Total non-interest expenses 1,698 1,427
Income before income taxes 810 954
Provision for income taxes 236 319
Net income $ 574 $ 635
Income per share
Basis: Weighted Average of 878,616 shares in 2000
Weighted Average of 883,235 shares in 1999
Basic and diluted earnings per share $ .65 $ .72
</TABLE>
-1-
<PAGE>
<TABLE>
PSB HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
<CAPTION>
($ thousands)
March 31, December 31,
ASSETS 2000* 1999*
<S> <C> <C>
Cash and due from banks $ 7,338 $ 11,926
Interest bearing deposits and money market funds 196 62
Federal funds sold 4 -0-
Investment securities -
Held to maturity (fair values of $13,316
and $13,473 respectively) 13,718 13,843
Available for sale (at fair value) 46,489 46,489
Loans held for sale -0- -0-
Loans receivable, net of allowance for loans losses of
$2,237 and $2,099 in 2000 and 1999, respectively 195,224 180,524
Accrued interest receivable 2,038 1,746
Premises and equipment 3,990 3,897
Other assets 1,318 1,402
TOTAL ASSETS $270,315 $259,889
LIABILITIES
Noninterest-bearing deposits $29,938 $33,657
Interest-bearing deposits 178,089 168,697
Total deposits 208,027 202,354
Short-term borrowings 16,436 21,215
Long-term borrowings 23,000 13,000
Other liabilities 1,532 2,273
Total liabilities 248,995 238,842
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 7,159 7,159
Retained earnings 14,503 13,929
Net unrealized gain (loss) on securities available
for sale, net of tax (982) (1,043)
Treasury stock, at cost - 29,458 shares as of March 31, 2000
19,190 shares as of December 31, 1999 (1,165) (803)
Total stockholders' equity 21,320 21,047
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $270,315 $259,889
<FN>
*The consolidated balance sheet at March 31, 2000 is unaudited. See
accountant's review report. The December 31, 1999 consolidated balance sheet
is derived from audited financial statements.
</TABLE>
-2-
<PAGE>
<TABLE>
PSB HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
<CAPTION>
Three Months Ended
($ thousands - unaudited) March 31,
2000 1999
<S> <C> <C>
Cash flows from operating activities:
Net income $ 574 $ 635
Provision for depreciation, and
net amortization 146 125
Provisions for loan losses 150 75
Gain on sale of loans (4) (91)
Loss on uncollected items 0 46
Gain on sale of premises and equipment (57) 0
Changes in operating assets and liabilities:
Other assets (172) (155)
Other liabilities (741) (913)
Net cash provided by (used in) operating activities (104) (278)
Cash flows from investing activities:
Proceeds from sale and maturities of:
Held to maturity securities 120 815
Available for sale securities 1,068 5,365
Payment for purchase of
Held to maturity securities 0 (1,409)
Available for sale securities (1,052) (4,157)
Net change in loans (14,846) (298)
Net change in interest-bearing deposits (134) (645)
Net change in federal funds sold (4) 3,934
Proceeds from sale of premises and equipment 61 0
Capital expenditures (228) (117)
Net cash provided by (used in) investing activities (15,015) 3,488
Cash flows from financing activities:
Net change in deposits 5,673 (6,959)
Net change in short-term borrowings (4,779) 3,203
Net change in long-term borrowings 10,000 0
Dividends paid 0 0
Purchase of stock (363) 0
Net cash provided by (used in) financing activities 10,531 (3,756)
Net decrease in cash and cash equivalents (4,588) (546)
Cash and cash equivalents at beginning of period 11,926 8,752
Cash and cash equivalents at end of quarter $ 7,338 $8,206
Supplemental Cash Flow Information:
Cash paid during the period for :
Interest 2,603 2,050
Income taxes 388 67
</TABLE>
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<PAGE>
Independent Accountant's Report
Board of Directors and Stockholders
PSB Holdings, Inc.
Wausau, Wisconsin
We have reviewed the accompanying unaudited condensed consolidated
balance sheet of PSB Holdings, Inc., and Subsidiary as of March 31,
2000, and the related unaudited consolidated statements of income, and
cash flows for the three-month period then ended. These financial
statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole. Accordingly, we do
not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the accompanying consolidated financial statements for
them to be in conformity with generally accepted accounting principles.
WIPFLI ULLRICH BERTELSON LLP
Wipfli Ullrich Bertelson LLP
May 4, 2000
Wausau, Wisconsin
-4-
<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 1999
annual report for the company's accounting policies which are
pertinent to these statements.
<TABLE>
<CAPTION>
4. Three months ended
($ thousands) 3/31/00 3/31/99
<S> <C> <C>
Net Income $ 574 $ 635
Change in net unrealized gain or loss on
securities available for sale, net of tax 61 (211)
Comprehensive income $ 635 $ 424
</TABLE>
In June 1998, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities" (FASB 133). FASB 133 establishes
new accounting and reporting requirements for derivative instruments,
including certain derivative instruments embedded in other contracts and
hedging activities. The standard requires all derivatives to be
measured at fair value and recognized as either assets or liabilities in
the statement of condition. Under certain conditions, a derivative may
be specifically designated as a hedge. Accounting for the changes in
the fair value of a derivative depends on the intended use of the
derivative and the resulting designation. Adoption of the standard
is required for the corporation's December 31, 2001 financial statements
with early adoption allowed as of the beginning of any quarter after
June 30, 1998. Management is in the process of assessing the impact and
period of adoption of the standard. Adoption is not expected to result
in material financial impact.
-5-
<PAGE>
4. Investment Securities
<TABLE>
The amortized cost and estimated fair value of investment securities are
as follows:
<CAPTION>
Gross Estimated
Amortized Unrealized Unrealized Fair
($ thousands) COST GAINS LOSSES VALUE
MARCH 31, 2000
<S> <C> <C> <C> <C>
Securities held to maturity:
Obligations of states and
political subdivisions $ 13,718 $ 10 $ 412 $ 13,316
Securities available for sale:
U.S. Treasury securities
and obligations of U.S.
government corporations
and agencies $ 46,290 $ 8 $ 1,406 $ 44,892
Other equity securities 1,597 1,597
Totals $ 47,887 $ 8 $ 1,406 $ 46,489
DECEMBER 31, 1999
Securities held to maturity
Obligations of states and
political subdivisions $ 13,843 $ 18 $ 388 $ 13,473
Securities available for sale:
U.S. Treasury securities
and obligations of U.S.
government corporations
and agencies $ 47,246 $ 13 $ 1,517 $ 45,742
Other equity securities 747 747
Totals $ 47,993 $ 13 $ 1,517 $ 46,489
</TABLE>
-6-
<PAGE>
<TABLE>
5. Loans
The composition of gross loans (excluding loans held for sale) at March
31, 2000, and December 31, 1999, follows:
<CAPTION>
March 31, 2000 % of total December 31, 1999 % of total
($ Thousands)
<S> <C> <C> <C> <C>
Commercial 50,602 25.63% 51,054 27.96%
Real Estate 132,103 66.90% 118,195 64.72%
Consumer 14,756 7.47% 13,375 7.32%
Total $197,461 100.00% $182,624 100.00%
</TABLE>
Gross loans outstanding increased 8.12% for the three months ended March
31, 2000: increasing to $197,461 at March 31, 2000 from $182,624 at
December 31, 1999.
The Company's process for monitoring loan quality includes weekly
analysis of delinquencies, non-performing assets, and potential problem
loans. Loans are placed on a nonaccrual status when they become
contractually past due 90 days or more as to interest or principal
payments. All interest accrued but not collected for loans
(including applicable impaired loans) that are placed on nonaccrual or
charged off is reversed to interest income. The interest on these loans
is accounted for on the cash basis until qualifying for return to accrual
status. Loans are returned to accrual status when all principal and
interest amounts contractually due have been collected and there is
reasonable assurance that repayment will continue within a reasonable
time frame.
A loan is considered impaired when, based on current information, it
is probable that the bank will not collect all amounts
due in accordance with the contractual terms of the loan agreement.
Impairment is based on discounted cash flows of expected future payments
using the loan's initial effective interest rate or the fair value of
the collateral if the loan is collateral dependent.
The aggregate amount of non-performing assets was $1,024 and $620 at March
31, 2000, and December 31, 1999, respectively. Non-performing assets
are those which are either contractually past due 90 days or more as to
interest or principal payments, on a nonaccrual status, or the terms of
which have been renegotiated to provide a reduction or deferral of
interest or principal.
-7-
<PAGE>
<TABLE>
The following table shows the amount of non-performing assets and other
real estate owned as of the dates indicated.
<CAPTION>
AGGREGATE AMOUNT OF NON-PERFORMING LOANS
March 31, % of total December 31, % of total
2000 LOANS 1999 LOANS
<S> <C> <C> <C> <C>
Loans on a non-accrual basis
Real estate - mortgage $ 454 .23% $ 225 .12%
Installment loans 85 .04% 52 .03%
Credit cards & related plans 0 0
Commercial & all other loans 485 .25% 343 .19%
Total non-accrual $ 1,024 .52% $ 620 .34%
Loans contractually past due
thirty through eighty-nine days
and still accruing
Real estate - mortgage $ 503 .25% $ 185 .10%
Installment loans 212 .11% 69 .04%
Credit cards & related plans 0 0
Commercial & all other loans 1,189 .60% 173 .09%
Total 30 - 89 days $ 1,904 .96% $ 427 .23%
Loans contractually past due
ninety days or more as to
interest or principal payments
Real estate - mortgage $ 0 $ 0
Installment loans 0 0
Credit cards & related plans 0 0
Commercial & all other loans 0 0
Total over 90 days $ 0 $ 0
Other real estate owned $ 0 $ 0
</TABLE>
-8-
<PAGE>
SUMMARY OF LOAN LOSS EXPERIENCE
<TABLE>
The following table summarizes loan balances at the end of each period,
changes in the allowance for loan losses arising from loans charged off
and recoveries on loans previously charged off, by loan category and
additions to the allowance which have been charged to expense.
<CAPTION>
Three Months Ended Year Ended
($ thousands) MARCH 31, 2000 DECEMBER 31, 1999
<S> <C> <C>
Allowance for loan losses at
beginning of period $2,099 $1,947
Loans charged off
Commercial & Industrial 0 (322)
Agricultural 0 0
Real Estate - Mortgage (14) (72)
Installment & Other
Consumer Loans (3) (38)
Total Charge Offs (17) (432)
Recoveries on loans previously
charged off
Commercial & Industrial 0 67
Agricultural 0 0
Real Estate - Mortgage 3 7
Installment & Other
Consumer Loans 2 50
Total Recoveries 5 124
Net loans charged off (12) (308)
Additions charged to operations 150 460
Allowance for loan losses
at end of period $2,237 $2,099
</TABLE>
-9-
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(All $ amounts are in thousands, except per share amounts)
This discussion will focus on information about the Company's financial
condition and results of operations that are not otherwise apparent from
the consolidated financial statements included in this report.
Reference should be made to those statements presented elsewhere in
this report for an understanding of the following discussion and
analysis.
This report contains certain of management's expectations and other
forward-looking information regarding the Company. While the Company
believes that these forward-looking statements are based on reasonable
assumptions, all such statements involve risk and uncertainties that
<PAGE>
could cause actual results to differ materially from these contemplated
in this report. A more comprehensive discussion of the risks and
uncertainties which could cause actual results to be materially
different from such expectations are set forth in Part I of the
Company's Annual Report of Form 10-K for the year ended December
31, 1999 under the heading "Cautionary Statement Regarding Forward
Looking Information."
BALANCE SHEET
During the first three months of 2000, total assets increased by $10,426.
Fed funds sold and investments decreased $121. The decrease was due to
the fact that securities proceeds are being used to fund loan growth.
Total loans (excluding loans held for sale) increased $14,700. The
majority of the increase in the loan portfolio was from real estate
loans. Real estate loans increased $13,908 and commercial loans
decreased $452. Total deposits increased $5,673. Short term
borrowings decreased $4,779. Within short term borrowings, fed
funds purchased decreased $3,112 and repurchase agreements decreased
$1,667. Long term borrowings increased $10,000, coming from
additional FHLB advances.
LIQUIDITY
Liquidity refers to the ability of the Company to generate adequate
funds to meet the Company's need for cash. The Company manages its
liquidity to provide adequate funds to support borrowing needs and
deposit flow of its customers. Management views liquidity as the
ability to raise cash at a reasonable cost or with a minimum of loss
and as a measure of balance sheet flexibility to react to
marketplace, regulatory and competitive changes. The primary
sources of the Company's liquidity are marketable assets maturing
within one year. At March 31, 2000, the carrying value of debt
securities maturing within one year amounted to $6,049 or 10.05% of
the total debt securities portfolio. The Company attempts when
possible, to match relative maturities of assets and liabilities, while
maintaining the desired net interest margin.
Marketable assets maturing within one year will continue to be the
primary source of liquidity along with stable earnings, and strong
capital position. At March 31, 2000 earning assets maturing within one
year amounted to $85,093. Interest bearing deposits maturing within one
year totaled $81,974.
-10-
CAPITAL RESOURCES
Stockholders' equity at March 31, 2000 increased $273, or 1.30% since
December 31, 1999. This net increase was composed of: net income for the
first three months of $574 and a decrease in the "Net unrealized loss on
securities available for sale" of $61. Equity to assets at March 31,
2000 was 7.89%. Equity was reduced $362 by additional purchases of
treasury stock.
The adequacy of the Company's capital is regularly reviewed to ensure
sufficient capital is available for current and future needs and is in
compliance with regulatory guidelines. As of March 31, 2000, the
<PAGE>
Company's tier 1 risk-based capital ratio, total risk-based capital, and
tier 1 leverage ratio were well in excess of regulatory minimums.
RESULTS OF OPERATIONS
Net income for the three months ended March 31, 2000, totaled $574, a
decrease of $61 from the $635 earned during the same period of 1999.
Earnings per share were $.65 for the three months ended March 31, 2000
and $.72 for the same period in 1999.
Return on average common stockholders' equity amounted to 10.88% for the
three months ended March 31, 2000; compared to 12.36% for the three
months ended March 31, 1999.
Return on average assets for the three months ended March 31, 2000
amounted to .87%; compared to 1.11% for the three months ended March
31, 1999.
NET INTEREST INCOME
Net interest income is the most significant component of earnings. For
analysis purposes, interest earned on tax exempt assets is adjusted to a
fully taxable equivalent basis.
Average earning assets grew $14.3 million or 5.93% in the first three
months of 2000. The annualized net interest margin for the first three
months of 2000 was 3.89% or 25 basis points less than the 4.14% margin
in the first three months of 1999. The interest rate spread also
decreased, to 3.12% from 3.32% reported for March 31, 2000.
The Company's net interest income was impacted by the interest rate
environment encountered in the first three months of 2000 as compared to
1999. The higher rate environment increased our yields on earning
assets to 8.03% compared to 7.98% in 1999. However, our costs for
interest bearing deposits increased to 4.91% from 4.66%
PROVISION FOR CREDIT LOSSES
Management determines the adequacy of the allowance for credit losses
based on past loan experience, current economic conditions, composition
of the loan portfolio, and the potential for future loss. Accordingly,
the amount charged to expense is based on management's evaluation of the
loan portfolio. It is the Company's policy that when available
information confirms that specific loans
-11-
and leases, or portions thereof, including impaired loans, are
uncollectible, these amounts are promptly charged off against the
allowance. The provision for credit losses was $150 for the three
months ended March 31, 2000 and $75 for the three months ended March
31, 2000. The allowance for credit losses as a percentage of gross
loans outstanding was $2,237 or 1.13% of total loans on March 31,
2000, compared to $2,099 or 1.15% of total loans on December 31, 1999.
Net charge-offs as a percentage of average loans outstanding were .01%
during the three months ended March 31, 2000 and .01% during the first
three months of 1999.
<PAGE>
Non-performing loans are reviewed to determine exposure for potential
loss within each loan category. The adequacy of the allowance for
credit losses is assessed based on credit quality and other pertinent
loan portfolio information. The adequacy of the reserve and the
provision for credit losses is consistent with the composition of the
loan portfolio and recent credit quality history.
NON-INTEREST INCOME
Non-interest income of $327 during the three months ended March 31,
2000, was the same as during the three months ended March 31, 1999.
Fee income on deposit accounts decreased $14 to $139 during the three
months ended March 31, 2000, from $153 during three months ended March
31, 1999. Gain on the sale of loans decreased $88 to $4 for the three
months ended March 31, 2000 from $92 for the three months ended March
31, 1999. Gain was recognized of $57 from an easement required to be
sold to the City of Wausau for road construction. Other non-interest
income increased $45 including a $19 increase in commissions from
investment product sales.
NON-INTEREST EXPENSE
Non-interest expenses increased 18.99% to $1,698 for the three months
ended March 31, 2000, from $1,427 for the three months ended March 31,
1999. The Company instituted an incentive compensation program for 2000
and is expensing the estimated costs of the program throughout 2000.
The Company is expanding the use of technology throughout the bank in
order to provide increased customer service and allow for more efficient
consolidation of its operational areas. The Company has placed emphasis
on increased productivity and standardization of programs and procedures
throughout all of its locations.
-12-
<PAGE>
<TABLE>
KEY OPERATING RATIOS
(unaudited) Ended March 31, 2000
<CAPTION>
Three Month Period
2000 1999
<S> <C> <C>
Return on assets (net income divided
by average assets) (1) .87% 1.11%
Return on Average Equity (net income
divided by average equity) (1) 10.88% 12.36%
Average Equity to Average Assets 7.99% 9.01%
Interest Rate Spread (difference between
average yield on interest earning assets
and average cost of interest bearing
liabilities) (1) (2) 3.12% 3.32%
Net Interest Margin (net interest income as a
percentage of average interest earning assets) (1) (2) 3.89% 4.14%
Non-interest Expense to average assets (1) 2.58% 2.52%
Allowance for loan losses to total loans
at end of period 1.13% 1.32%
<FN>
(1) Annualized
(2) Tax exempt income has been adjusted to its fully taxable equivalent
with a 34% tax rate.
</TABLE>
-13-
<PAGE>
<TABLE>
SELECTED FINANCIAL DATA
The following table presents consolidated financial data of PSB Holdings, Inc.
and Subsidiary.
<CAPTION>
Three Months Ended
March 31
2000 1999
(Dollars in thousands, except per share amounts)
<S> <C> <C>
FINANCIAL HIGHLIGHTS:
Earnings and Dividends:
Net interest revenue $2,331 $2,129
Provision for credit losses 150 75
Other noninterest income 327 327
Other noninterest expense 1,698 1,427
Net income 574 635
Per common share
Basic and diluted earnings .65 .72
Dividends declared 0 0
Book value 24.42 23.75
Average common shares 878,616 883,235
Dividend payout ratio 0 0
Balance Sheet Summary:
Loans net of unearned income 195,224 152,017
Assets 270,315 29,246
Deposits 208,027 192,841
Shareholders equity 21,320 20,641
Average balances:
Loans net of unearned income 188,247 151,652
Assets 263,364 227,383
Deposits 204,245 192,462
Shareholders equity 21,138 20,641
Performance Ratios:
Return on average assets (1) .87% 1.11%
Return on average common equity (1) 10.88% 12.36%
Tangible Equity to assets 8.25% 9.01%
Net loan charge-offs as a percentage
of average loans .01% .05%
Nonperforming assets as a percentage
of average loans .54% .41%
Net interest margin (1) (tax adjusted) 3.89% 4.14%
Efficiency ratio (tax adjusted) 62.04% 56.12%
Liquidity ratio 7.62% 33.18%
Fee revenue as a percentage of
average assets (1) .24% .27%
<FN>
(1) annualized
</TABLE>
-14-
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
There has been no material change in the information provided in
response to Item 7A of the Company's Form 10-K for the year ended
December 31, 1999.
-14-
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not Applicable
ITEM 2. CHANGES IN SECURITIES
Not Applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS
Not Applicable
ITEM 5. OTHER INFORMATION
Not Applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K:
The following exhibits required by Item 601 of Regulation S-K are filed
with the Securities and Exchange Commission as part of this report.
Exhibit
NUMBER DESCRIPTION
3.1 Restated Articles of Incorporation, as amended (incorporated
by reference to Exhibit 4(a) to the Company's Current Report
on Form 8-K dated May 30, 1995)
3.2 Bylaws (incorporated by reference to Exhibit 4(b) to the
Company's Current Report on Form 8-K dated May 30, 1995)
4.1 Articles of Incorporation and Bylaws (see Exhibits 3.1 and
3.2)
10.1 Bonus Plan of Directors of the Bank (incorporated by
reference to Exhibit 10(a) to the Company's Annual Report
on Form 10-K for the fiscal year ended December 31, 1995)*
-15-
10.2 Bonus Plan of Officers and Employees of the Bank*
(incorporated by reference to Exhibit 10(b) to the
Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 1995)*
<PAGE>
10.3 Non-Qualified Retirement Plan for Directors of the Bank
(incorporated by reference to Exhibit 10(c) to the Company's
Annual Report on Form 10-K for the fiscal year ended
December 31, 1995)*
21.1 Subsidiaries of the Company (incorporated by reference to
Exhibit 22 to the Company's Annual Report on Form 10-K for
the fiscal year ended December 31, 1995)
27.1 Financial Data Schedule (electronic filing only)
*Denotes Executive Compensation Plans and Arrangements
(b) Reports on Form 8-K:
None.
-15-
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 15, 2000 TODD R. TOPPEN
Todd R. Toppen
Secretary and Controller
(On behalf of the Registrant and as
Principal Financial Officer)
-17-
EXHIBIT INDEX<dagger>
TO
FORM 10-Q
OF
PSB HOLDINGS, INC.
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
Pursuant to Section 102(d) of Regulation S-T
(17 C.F.R. Section 232.102(d))
EXHIBIT 27 - FINANCIAL DATA SCHEDULE
<dagger> Exhibits required by Item 601 of Regulation S-K which have
been previously filed and are incorporated by reference are set
forth in Item 6 of the Form 10-Q to which this Exhibit Index
relates.
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 7,338
<INT-BEARING-DEPOSITS> 196
<FED-FUNDS-SOLD> 4
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 46,489
<INVESTMENTS-CARRYING> 13,718
<INVESTMENTS-MARKET> 13,316
<LOANS> 197,461
<ALLOWANCE> 2,237
<TOTAL-ASSETS> 270,315
<DEPOSITS> 208,027
<SHORT-TERM> 16,436
<LIABILITIES-OTHER> 1,532
<LONG-TERM> 23,000
0
0
<COMMON> 1,805
<OTHER-SE> 19,515
<TOTAL-LIABILITIES-AND-EQUITY> 270,315
<INTEREST-LOAN> 4,019
<INTEREST-INVEST> 871
<INTEREST-OTHER> 17
<INTEREST-TOTAL> 4,907
<INTEREST-DEPOSIT> 2,057
<INTEREST-EXPENSE> 2,576
<INTEREST-INCOME-NET> 2,331
<LOAN-LOSSES> 150
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,698
<INCOME-PRETAX> 810
<INCOME-PRE-EXTRAORDINARY> 810
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 574
<EPS-BASIC> .65
<EPS-DILUTED> .65
<YIELD-ACTUAL> 3.57
<LOANS-NON> 869
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 1,904
<ALLOWANCE-OPEN> 2,099
<CHARGE-OFFS> 17
<RECOVERIES> 5
<ALLOWANCE-CLOSE> 2,237
<ALLOWANCE-DOMESTIC> 2,237
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
