PSB Holdings Inc. Financial Results and Strategic Growth Initiatives

PSB Holdings, Inc., the parent company of Peoples State Bank, reported its first quarter financial results for March 31, 2026. Earnings per diluted share were $0.82, with a net income of $3.3 million, showing a decrease from the previous quarter's $0.97 per share and $3.9 million in net income. However, this marked an improvement from $0.60 per share and a $2.4 million net income in the same quarter last year.

The first quarter performance saw a rise in net interest margin, mainly due to increased yields on loans and securities. Non-interest income increased, driven by the sale of SBA loans and life insurance benefits, though partially offset by losses from securities sales. Non-interest expenses also rose, attributed to higher personnel costs and adjustments for FDIC insurance premiums.

Total assets expanded by $33.9 million, reaching $1.50 billion by the end of March 2026. Cash and equivalents grew by $29.6 million, while investment securities decreased by $13.2 million. Loans receivable increased by $15.6 million, fueled by growth in commercial real estate and commercial-industrial loans, despite a decline in residential and agricultural loans.

Deposits rose by $10 million to $1.19 billion, with notable changes including a rise in money market deposits and a decrease in both retail, local time, and brokered deposits. FHLB advances increased by $24 million to offset the decline in brokered deposits. Credit quality saw improvement with a reduction in non-performing assets by $1 million, while the allowance for credit losses increased to 1.16% of gross loans.

Net interest income climbed to $11.9 million, supported by higher loan and security yields. The yield on earning assets rose to 5.61%, with specific loan yields increasing to 6.12%. While funding costs rose slightly due to increased deposit rates, FHLB advance costs decreased, positively impacting net interest income.

Non-interest income experienced growth due to deferred SBA loan sales from a previous government shutdown, which were completed in the first quarter. Life insurance benefits also contributed to this rise. However, non-interest expenses rose significantly because of higher salaries, benefits, and one-time costs related to FDIC premiums and professional services.

President and CEO Scott Cattanach highlighted the continued expansion of the net interest margin, supporting the bank's profitability and strategic growth initiatives. Rhonda Norrbom joined as Executive Vice President and Chief Credit Officer, focusing on managing credit risks effectively and aligning lending practices with community objectives. PSB Holdings, Inc. remains traded on the OTCQX Market under the symbol PSBQ, operating through Peoples State Bank with several branches in Wisconsin.