PSB Holdings, Inc. Reports Quarterly Earnings of $0.86 Per Share; Net Interest Margin and Tangible Net Book Value Expansion Continues

Core Viewpoint - PSB Holdings, Inc. reported a slight decrease in earnings per share for the third quarter of 2025 compared to the previous quarter, but a significant increase compared to the same quarter last year, reflecting improved net interest margins and operational efficiency [1][3]. Financial Performance - Earnings per diluted common share for Q3 2025 were $0.86, down from $0.89 in Q2 2025 but up from $0.69 in Q3 2024 [1]. - Net income for Q3 2025 was $3.5 million, compared to $3.6 million in Q2 2025 and $2.9 million in Q3 2024 [1]. - Net interest income increased by $617,000 to $11.3 million in Q3 2025, attributed to higher yields on loans and lower funding costs [5][13]. Balance Sheet and Asset Quality - Total assets decreased by $9.9 million to $1.50 billion at the end of Q3 2025 [5]. - Cash and cash equivalents decreased by $20.0 million to $37.4 million [5]. - Non-performing assets increased by $1.3 million to $17.0 million, representing 1.13% of total assets [8][5]. - Total deposits increased by $11.6 million to $1.19 billion [9]. Loan Portfolio - Net loans increased by $5.8 million, or 1%, to $1.12 billion [5]. - The loan portfolio remains diversified, with commercial real estate and construction loans making up 56.3% of gross loans [7]. Non-Interest Income and Expenses - Non-interest income decreased by $171,000 to $1.9 million, primarily due to lower mortgage banking income [5][16]. - Non-interest expenses increased by $613,000 to $8.8 million, mainly due to higher health insurance costs [5][17]. Capital and Equity - Tangible book value per common share increased by 10.0% to $29.05 compared to $26.41 a year earlier [12]. - The return on average tangible common equity was 12.14% for Q3 2025, down from 13.11% in Q2 2025 [11][27]. Management Commentary - The CEO highlighted the return of net interest margins to historical levels and the successful expansion into the Milwaukee region, which has provided good lending opportunities [3]. - The company has increased tangible capital by $9.0 million over the past year and expects to continue expanding capital in 2026 [3].