PSB Holdings, Inc. · OTC:PSBQ
PSB — Merger or Acquisition (December 2020)
10 slides from PSB's merger presentation, Dec 16, 2020
Slide 1: Acquisition of Waukesha Bankshares, Inc. and its subsidiary, Sunset Bank & Savings
PSB Holdings, Inc. (PSBQ) Acquisition of Waukesha Bankshares, Inc. and its subsidiary, Sunset Bank & Savings December 16, 2020 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
PSB Holdings, Inc. Cautionary Note Regarding “PSBQ” Forward-Looking Statements Certain matters discussed in this presentation, including those relating to the growth of PSBQ, its profits, and future interest rates, are forward-looking statements and are made pursuant to the safe harbor provisions of
Slide 3: Transaction Rationale
PSB Holdings, Inc. Transaction Rationale “PSBQ” • Doubles PSBQ’s presence in Milwaukee area market to approximately $250 million in assets after starting a de-novo loan production office in 2016 • Establishes a meaningful presence in Waukesha County, which consistently shows strong banking demograph
Slide 4: Sunset Bank & Savings
PSB Holdings, Inc. Sunset Bank & Savings “PSBQ” Corporate Pro Forma Branch Map He a dqua rte rs: Waukes ha, WI Cha irma n & CEO: Robert F. Eas tman J r. Esta blishe d: 8/1 6/1 999 CFO: J ohn P . Udvare Historical Financials (Dollars in thous ands ) 201 7 201 8 201 9 2020Q3 YTD Ba la nce S he e t Tot
Slide 5: Strong Demographics
PSB Holdings, Inc. Strong Demographics “PSBQ” Median Household Income % of HH w/ Income >$100k $93,695 46.7% $65,969 $66,361 29.9% 28.6% Sunset PSBQ Wisconsin Sunset PSBQ Wisconsin ‘10 - '21 Population Change '21 - '26 Projected Population Change 4.3% 4.3% 1.8% 2.7% 2.7% 1.2% 1.1% 0.8% 1.1% Sunset P
Slide 6: Pro Forma Loans & Deposits
PSB Holdings, Inc. Pro Forma Loans & “PSBQ” Deposits Loan Composition ($000s) PS B Holdings , Inc. S uns et Bank & S avings Pro Forma Total Loans & Leas es : $803,334 Total Loans & Leas es : $1 02,380 Total Loans & Leas es : $905,71 4 Agricultural Consumer All Other Consumer Agricultural All Other C
Slide 7: Transaction Terms
PSB Holdings, Inc. Assumptions & Impact “PSBQ” Transaction Terms • Cash purchase price of $9.6 million • Minimum Waukesha Bankshares, Inc. holding company tangible equity requirement of $8.0 million at closing 7
Slide 8: Financial Impact
PSB Holdings, Inc. Assumptions & Impact “PSBQ” Financial Impact • Purchase price represents 118% of tangible book value as of 9/30/2020 • Price / earnings plus fully phased in cost savings of 6.7x • Mid-teens accretive to EPS with fully phased in cost savings • Approximately 5.4% tangible book value
Slide 9: Key Modeling Assumptions
PSB Holdings, Inc. Assumptions & Impact “PSBQ” Key Modeling Assumptions • 40% cost savings on a fully phased in basis • $2.5 million gross loan mark (Approximately 2.4% of Sunset’s 9/30 gross loans) • OREO marked down $100K. Facilities marked down $106K • CDI of 0.50% amortized over 10 years • Mid s
Slide 10: Anticipated Timeline
PSB Holdings, Inc. Assumptions & Impact “PSBQ” Anticipated Timeline • Transaction expected to close in early Q2 2021 • Data conversion expected June 2021 10