PSB Holdings, Inc. · OTC:PSBQ
PSB — Raymond James US Bank Conference 2022
25 slides from PSB's conference presentation, Sep 7, 2022
Slide 1: Raymond James US Bank Conference
PSB Holdings, Inc. “PSBQ” Raymond James US Bank Conference September 7-8, 2022 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 without limitation those relating to potential loan and deposit growth, future profits, changes in noninterest income and expenses, pro-forma impacts to income fro
Slide 3: Management Team
PSB Holdings, Inc. Management Team “PSBQ” Scott M. Cattanach has served as President & Chief Executive Officer of PSB Holdings, Inc. (“PSB”) and Peoples State Bank (“Bank”) since 2018. Mr. Cattanach previously served as Chief Financial Officer of PSB and the Bank from 2002 through 2017. Mr. Cattanac
Slide 4: Company Overview
PSB Holdings, Inc. “PSBQ” Company Overview • PSB Holdings, Inc. ($1.3 billion in assets) is the parent company of Peoples State Bank headquartered in Wausau, Wisconsin, serving north central and southeastern Wisconsin from ten full-service banking locations. In north central Wisconsin, PSB Holdings,
Slide 5: Company Overview: Award Winning Service
PSB Holdings, Inc. “PSBQ” Company Overview Award Winning Service Shareholder focused – American Banker Magazine “Top 200 Community Banks” list in 2022 for 13 consecutive years Customer focused – Peoples State Bank voted “Best Bank in Marathon County” by readers of the Wausau Daily Herald for the pas
Slide 6: History of Returns
PSB Holdings, Inc. “PSBQ” History of Returns ROATCE 15% 12% 9% 6% 3% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q2 6
Slide 7: Company Overview: Financial Highlights
PSB Holdings, Inc. “PSBQ” Company Overview Financial Highlights ($ in Millions) 2019 2020 2021 2022 Q2 Total Assets $975 $1,132 $1,299 $1,308 Total Loans 708 822 879 926 Total Deposits 782 932 1,105 1,113 Total Equity 93 104 111 96 ROAA 1.22% 1.01% 1.03% 1.02% ROATCE 12.77 10.83 11.87 13.20 Efficien
Slide 8: Strategic Focus
PSB Holdings, Inc. Strategic Focus “PSBQ” Targets Expand assets to $1.8B - $2.0B Disciplined acquisition strategy: Explore new LPO markets and small bank acquisitions Convert LPO operations in Stevens Point to full-service branch Manage cash resources needed for acquisitions and share repurchases Ex
Slide 9: Disciplined Acquisition Strategy
PSB Holdings, Inc. Disciplined Acquisition “PSBQ” Strategy Areas of Potential Acquisition Opportunities Smart consolidation of community banks Provides scale and operating efficiencies PSBQ Locations Adds experienced and knowledgeable banking talent PSBQ LPO Opportunity to drive scale and fi
Slide 10: Business Model Strengths
PSB Holdings, Inc. Business Model Strengths “PSBQ” 10
Slide 11: Net Income Trends
PSB Holdings, Inc. Net Income Trends “PSBQ” Net Income $14,000 $12,000 (Dollars in Thousands) $10,000 $8,000 $13,044 $6,000 $11,247 $12,817 $10,312 $10,689 $4,000 $7,187 $2,000 $0 2017 2018 2019 2020 2021 2022 YTD Annualized Diluted EPS $3.00 $2.50 $2.00 $2.94 $1.50 $2.88 $2.29 $2.51 $2.40 $1.00 $1.
Slide 12: Balance Sheet Trends
PSB Holdings, Inc. Balance Sheet Trends “PSBQ” Total Assets (Dollars in 000’s) $1,400,000 $1,298,711 $1,307,564 $1,200,000 $1,131,955 $974,893 $1,000,000 $915,998 $847,681 $800,000 $600,000 $400,000 $200,000 $0 2017 2018 2019 2020 2021 2022 Q2 Tangible Equity $000 (excluding AOCI) $120,000 $112,731
Slide 13: Loan Portfolio
PSB Holdings, Inc. Loan Portfolio “PSBQ” 40.0% 30.9% 30.0% 22.6% 20.0% 20.0% 16.4% % of Loans 9.6% 10.0% 0.5% 0.0% Consumer Constr, Dev & CRE Owner- CRE Non- Comm/Ag Residential RE Vac Land Occ Owner-Occ Non RE 12/31/2019 12/31/2020 12/31/2021 6/30/2022 Loan Portfolio Trends ($000s) $1,000,000 $925,
Slide 14: Milwaukee Growth
PSB Holdings, Inc. Milwaukee Growth “PSBQ” $1,000,000 $900,000 $800,000 $209,717 (Dollars in Thousands) $103,462 $184,659 $700,000 $71,608 $32,826 $54,240 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 06/30/2022 North Woods & Central
Slide 15: Earnings Trends
PSB Holdings, Inc. Earnings Trends “PSBQ” ROAA ROATC 1.40% 1.19% 1.22% 16.00% 13.46% 12.77% 13.20% 1.20% 1.03% 1.02% 14.00% 11.87% 1.01% 10.83% 1.00% 0.87% 12.00% 9.84% 10.00% 0.80% 8.00% 0.60% 6.00% 0.40% 4.00% 0.20% 2.00% 0.00% 0.00% 2017 2018 2019 2020 2021 2022 Q2 2017 2018 2019 2020 2021 2022 Q
Slide 16: Per Share Trends
PSB Holdings, Inc. Per Share Trends “PSBQ” $4.39 Diluted EPS Tangible Book Value Per Share decline due to $4.00 $27.50 $24.36 AOCI $25.00 $23.43 $22.50 $20.72 $21.10 $2.88 $3.00 $2.51 $20.00 $17.98 $2.29 $2.40 $16.28 $17.50 $15.00 $2.00 $1.58 $1.47 $12.50 $10.00 $1.00 $7.50 $5.00 $2.50 $0.00 $0.00 2
Slide 17: Asset Quality Trends
PSB Holdings, Inc. Asset Quality Trends “PSBQ” NPA/Assets and Reserves/Total Loans 3.00% 2.81% 2.87% 2.64% 2.50% 2.08% 1.96% 2.00% 1.77% 1.46% 1.49% 1.50% 1.27% 1.04% 1.06% 1.00% 0.90% 0.88% 0.83% 0.67% 0.23% 0.55% 0.50% 0.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 202
Slide 18: Charge-Off History
PSB Holdings, Inc. Charge-Off History “PSBQ” Charge-Off History vs Peers 1.05% 0.88% 0.90% 0.85% 0.77% 0.92% 0.75% 0.63% 0.60% 0.45% 0.38% 0.34% 0.30% 0.37% 0.16% 0.33% 0.32% 0.17% 0.28% 0.11% 0.11% 0.11% 0.11% 0.15% 0.08% 0.21% 0.06% 0.18% 0.02% 0.23% 0.09% 0.00% 0.03% 0.05% 0.06% 0.01% 0.05% 0.02%
Slide 19: Asset Quality Trends
PSB Holdings, Inc. Asset Quality Trends “PSBQ” Commercial, Commercial Real Estate, Construction & Development, Agricultural and Government Loans ($000s) Risk Rating 12/2019 % 12/2020 % 12/2021 % 06/2022 % Rating 1 "High Quality" $ - 0.0% $ - 0.0% $ - 0.0% $ 48 0.0% Rating 2 "Minimal Risk" 57,904 10.
Slide 20: Deposit Portfolio
PSB Holdings, Inc. Deposit Portfolio “PSBQ” 21.60% 20.50% 22.60% 25.40% 25.70% 25.50% Nonint-Bearing Demand 34.1% 35.1% 32.9% 35.7% 37.4% 33.8% Int Bearing Demand & Savings Money Market Demand 20.1% 20.0% 23.5% 20.4% Retail & Local Time 23.8% 19.8% Wholesale Deposits 16.5% 16.8% 16.6% 14.5% 13.6% 15
Slide 21: Key Data at a Glance
PSB Holdings, Inc. Key Data at a Glance “PSBQ” (Dollars in Thousands) 2022 Q2 2021 2020 2019 2018 2017 YTD Total Assets $1,307,564 $1,298,711 $1,131,955 $974,893 $915,998 $847,681 Total Loans $925,530 $879,398 $821,910 $708,196 $658,839 $610,076 Total Deposits $1,113,459 $1,105,240 $932,137 $781,790
Slide 22: P/TBV Comparison
PSB Holdings, Inc. P/TBV “PSBQ” Comparison P/TBV Comparison 140.00% 129.9% 128.8% 135.1% 120.7% 117.4% 120.00% 125.1% 98.1% 100.00% 111.4% 106.9% 80.00% 87.8% 60.00% 40.00% 0.23% 20.00% 0.00% 2018 2019 2020 2021 2022 Q2 PSBQ P/TBV Peer Median P/TBV Peers include all publicly-traded financial institu
Slide 23: P/E Comparison
PSB Holdings, Inc. P/E Comparison “PSBQ” P/E Comparison 16.00 13.7 14.00 12.2 12.00 10.6 11.1 9.8 10.00 9.4 9.8 8.00 9.0 8.6 7.8 6.00 4.00 0.23% 2.00 0.00 2018 2019 2020 2021 2022 LTM PSBQ P/E Peer Median P/E Peers include all publicly-traded financial institutions with assets between $1.0 billion a
Slide 24: Challenges and Opportunities
PSB Holdings, Inc. Challenges and “PSBQ” Opportunities Challenges Opportunities • Margin Management in a Volatile • Strengthen Capital to Facilitate and Rapidly Changing Interest Acquisitions and Capital Rate Environment Management Strategies • Managing Asset Quality in a • Establish LPO’s in Growth
Slide 25: Investment Appeal
PSB Holdings, Inc. Investment Appeal “PSBQ” Value Investment With Core P/E Ratio Well Below Peers Extended History of Delivering Double Digit Returns on Tangible Equity, Building Tangible Book Value 29 Year History of Increasing Dividends Paid to Shareholders Efficient Franchise With Signifi