PSB Holdings, Inc. · OTC:PSBQ
PSB — Raymond James Virtual Conference 2022
25 slides from PSB's conference presentation, Feb 23, 2022
Slide 1: PSB Holdings, Inc. Raymond James Virtual Conference
PSB Holdings, Inc. “PSBQ” Raymond James Virtual Conference February 23, 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: Who We Are Today
PSB Holdings, Inc. Who We Are Today “PSBQ” Company Overview Financial Highlights • PSB Holdings, Inc. ($1.3 billion in assets) is the parent company of ($ in Millions) 2018 2019 2020 2021 Peoples State Bank headquartered in Wausau, Wisconsin, serving Total Assets $916 $975 $1,132 $1,299 north centra
Slide 5: Branch Locations
PSB Holdings, Inc. Branch Locations “PSBQ” Loan Production Office Marathon County 6/30/2021 Northern Wisconsin 6/30/2021 Milwaukee MSA 6/30/2021 Deposits Deposits Deposits Address City ($000) Street Address City ($000) Street Address City ($000) 1905 Stewart Ave Wausau $376,170 8 E Anderson St Rhine
Slide 6: Mid-term Strategy
PSB Holdings, Inc. Mid-term Strategy “PSBQ” Build Expand assets to $1.8B to $2.0B Convert LPO Explore new LPO operations in markets and small Stevens Point to bank acquisitions full-service branch Manage cash Expand and build Expand SBA 7a loan resources needed for out our successful program acquisi
Slide 7: Economic Recovery
PSB Holdings, Inc. Economic Recovery “PSBQ” Unemployment Rates in Primary Markets Compared to State and National Averages 24.00 21.00 With the large manufacturing base in Wisconsin having 18.00 difficulty finding workers, some manufacturers are beginning to explore robotic options and are turning to
Slide 8: Business Model Strengths
PSB Holdings, Inc. Business Model Strengths “PSBQ” History of Strong Earnings Margin Well Diversified Improvement In a Loan Portfolio Rising Rate Environment PSB Holdings, PSB Holdings, Inc. Inc. Good Asset Diversified Non- Quality Supported Interest Income by Conservative Sources Expansion Into Und
Slide 9: Net Income Trends
PSB Holdings, Inc. Net Income Trends “PSBQ” $14,000 $12,000 Net Income (Dollars in Thousands) $10,000 $8,000 $6,000 $12,817 $10,312 $11,247 $10,689 $4,000 $8,436 $7,187 $2,000 $0 2016 2017 2018 2019 2020 2021 $3.00 Diluted EPS $2.50 $2.00 $1.50 $2.88 $2.29 $2.51 $2.40 $1.00 $1.83 $1.58 $0.50 $0.00 2
Slide 10: Balance Sheet Trends
PSB Holdings, Inc. Balance Sheet Trends “PSBQ” $1,400,000 $1,298,711 Total Assets ($000s) $1,200,000 $1,131,955 $974,893 $1,000,000 $915,998 $827,528 $847,681 $800,000 $600,000 $400,000 $200,000 $0 2016 2017 2018 2019 2020 2021 $120,000 Tangible Common Equity ($000s) $108,187 $104,312 $100,000 $92,5
Slide 11: Loan Portfolio
PSB Holdings, Inc. Loan Portfolio “PSBQ” 35.0% 12/31/2020 12/31/2021 29.9% 30.0% 24.7% 25.4% 25.0% 23.1% 23.4% 20.9% 20.0% 16.2% 17.3% % of Loans 15.0% 9.0% 9.1% 10.0% 5.0% 0.5% 0.5% 0.0% Consumer Constr, Dev & CRE Owner- CRE Non- Comm/Ag Residential RE Vac Land Occ Owner-Occ Non RE $1,000,000 Loan
Slide 12: Milwaukee Growth
PSB Holdings, Inc. Milwaukee Growth “PSBQ” $1,000,000 $900,000 $800,000 (Dollars in Thousands) $103,462 $111,460 $190,102 $184,453 $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 03/31/2021 06/30/2021 09/3
Slide 13: Earnings Trends
PSB Holdings, Inc. Earnings Trends “PSBQ” ROAA ROATC 1.40% 1.22% 16.00% 1.19% 13.46% 1.20% 1.07% 14.00% 12.48% 12.77% 1.01% 1.03% 11.87% 12.00% 10.83% 1.00% 0.87% 9.84% 10.00% 0.80% 8.00% 0.60% 6.00% 0.40% 4.00% 0.20% 2.00% 0.00% 0.00% 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Net
Slide 14: Per Share Trends
PSB Holdings, Inc. Per Share Trends “PSBQ” Diluted EPS Tangible Book Value Per Share $2.88 $30.00 $3.00 $2.51 $23.43 $24.36 $2.29 $2.40 $25.00 $20.72 $1.83 $20.00 $17.98 $2.00 $16.28 $1.58 $15.08 $15.00 $1.00 $10.00 $5.00 $0.00 $0.00 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Annual
Slide 15: Asset Quality Trends
PSB Holdings, Inc. Asset Quality Trends “PSBQ” NPA/Assets, Reserves/Total Loans and Charge-Off History 3.00% 2.81% 2.87% 2.64% 2.50% 2.08% 1.96% 2.00% 1.77% 1.46% 1.49% 1.50% 1.38% 1.27% 1.04% 1.06% 1.00% 0.90% 0.83% 0.67% 0.23% 0.55% 0.50% 0.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 16: 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% 0.23% 0.00% 0.03% 0.05% 0.09% 0.05% 0.08% 0.06% 0.01% 0.02%
Slide 17: 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 03/2021 06/2021 09/2021 12/2021 Rating 1 "High Quality" $ - $ - $ - $ - $ 77 $ - Rating 2 "Minimal Risk" 57,904 61,223
Slide 18: PPP Earnings Impact
PSB Holdings, Inc. PPP Earnings Impact “PSBQ” Quarter Ended Year Ended (dollars in thousands, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, December except per share data - unaudited) 2021 2021 2021 2021 2020 2020 2020 2021 2020 Interest and dividend income: Loans, including fees $
Slide 19: Deposit Portfolio
PSB Holdings, Inc. Deposit Portfolio “PSBQ” 20.90% 21.60% 20.50% 22.60% 25.40% 25.70% Nonint-Bearing Demand 32.9% 34.1% 35.1% 32.9% 35.7% 37.4% Int Bearing Demand & Savings Money Market Demand 20.7% 20.1% 20.0% 23.5% Retail & Local Time 23.8% 19.8% 17.0% Wholesale Deposits 16.5% 16.8% 16.6% 13.6% 15
Slide 20: Key Data at a Glance
PSB Holdings, Inc. Key Data at a Glance “PSBQ” (Dollars in Thousands) 2021 2020 2019 2018 2017 2016 Total Assets $1,298,711 $1,131,955 $974,893 $915,998 $847,681 $827,528 Total Loans $879,398 $821,910 $708,196 $658,839 $610,076 $586,911 Total Deposits $1,105,240 $932,137 $781,790 $725,826 $702,303 $
Slide 21: P/TBV Comparison
PSB Holdings, Inc. P/TBV “PSBQ” Comparison P/TNBV Comparison 140.00% 129.93% 135.85% 129.51% 128.79% 117.36% 120.00% 98.09% 100.00% 106.71% 80.00% 90.47% 60.00% 40.00% 0.23% 20.00% 0.00% 2018 2019 2020 2021 PSBQ P/TBV Peer Median P/TBV Peers include all publicly-traded financial institutions with as
Slide 22: P/E Comparison
PSB Holdings, Inc. P/E Comparison “PSBQ” P/E Comparison 16.00 13.74 14.00 12.16 12.00 10.62 11.60 11.27 9.80 10.00 8.00 8.94 9.03 6.00 4.00 0.23% 2.00 0.00 2018 2019 2020 2021 PSBQ P/E Peer Median P/E Peers include all publicly-traded financial institutions with assets between $1.0 billion and $2.0
Slide 23: 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 24: Shareholder Value History
PSB Holdings, Inc. Shareholder Value History “PSBQ” Regular book Price Growing Liquidate value growth increases tied dividend when desired to NBV growth 10 yr ROE 10 yr CAGR 10 yr CAGR Past 10 11.37% avg Stock price Cash div years: (8.37% +13.27% +6.95% 1,678 min.) TNBV/shr shares/day +9.15% $44,000
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 Efficient Franchise With Significant Market Presence in Each Branch Market Area Ample Organic Growth