PSB Holdings, Inc Reports Second Quarter 2023 Earnings of $0.64 Per Share; Loan Growth Up 7.7% From Prior Quarter; New Branch in Stevens Point Opened.

WAUSAU, Wis: PSB Holdings, Inc. ("PSB") (OTCQX: PSBQ), the holding company for Peoples State Bank ("Peoples") serving Northcentral and Southeastern Wisconsin reported second quarter earnings ending June 30, 2023 of $0.64 per common share on net income of $2.7 million, compared to $0.67 per common share on net income of $2.9 million during the first quarter ending March 31, 2023, and $0.72 per common share on net income of $3.2 million during the second quarter ending June 30, 2022.

PSB's second quarter 2023 operating results reflected the following changes from the first quarter of 2023: (1) lower net interest income due to rising deposit and FHLB advance costs; (2) higher non-interest income despite losses on sale of securities; (3) slightly higher non-interest expense related to health care expenses; (4) higher accumulated other comprehensive loss due to an increase in intermediate interest rates; (5) strong loan growth of $75 million; and (6) increased borrowings to fund seasonal business customer and municipal deposit outflows, promote increased on-balance sheet liquidity, and to fund net loan growth.

"We realized strong loan growth in the second quarter which has helped boost yields on the loan portfolio and offset increased interest expense. Additionally, with a gain realized on a life insurance policy, we were able to offset a loss on the sale of securities and right-size our investment portfolio with better asset yields. Towards the end of the quarter, and with the addition of new loans, we began to see the compression on our net interest margin stabilize," stated Scott Cattanach, President and CEO. "On July 14th, we converted our loan production office in Stevens Point to a full service branch which should facilitate attracting full deposit relationships with existing and new loan customers in the Stevens Point community."

June 30, 2023 Highlights:

Loans increased $75.1 million in the second quarter ended June 30, 2023 to $1.1 billion from $973.3 million at the end of the first quarter March 31, 2023.

Tangible book value per common share increased to $22.64 at June 30, 2023 from $22.43 one quarter earlier. Tangible book value per share benefited from fewer shares outstanding. Return on tangible common equity was 11.14% for the quarter ended June 30, 2023 compared to 12.51% the prior quarter.

Net interest income decreased to $9.5 million for the quarter ended June 30, 2023, compared to $9.9 million for the quarter ended March 31...