PSB Holdings, Inc. · OTC:PSBQ
PSB — Shareholder Meeting (April 2023)
54 slides from PSB's shareholder meeting presentation, Apr 18, 2023
Slide 1: Annual Shareholder Meeting
A nnual S hareholder M eeting
Slide 2: William J. Fish, Chairman
W illiam J . Fis h C hairman P S B Holdings , Inc . P eoples S tate B ank
Slide 3: Peoples
Peoples APSB
Slide 4: Scott M. Cattanach, President & CEO
S c ott M . C attanac h P res ident & C E O P S B Holdings , Inc . P eoples S tate B ank
Slide 5: Forward Looking Statements
Forward Looking S tatements Certain matters discussed in this presentation, including without limitation those relating to the growth of PSB, its profits, and future interest rates, are forward‐looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigatio
Slide 6: Agenda
A genda Scott M. Cattanach • Looking Back – 2022 Highlights • Peoples State Bank – Strength & Stability • Momentum Forward – 2023 Actions Erik Rajek • Commercial Credit Risk Review Jessica M. Brown • 2022 Financial Review • Shareholder Value Strategies Scott M. Cattanach • Formal Business – Sharehol
Slide 7: 60 Years of Community Banking
6 0 Y ears of C ommunity B ank ing
Slide 8: 60 Years of Community Banking
6 0 Y ears of C ommunity B ank ing
Slide 9: Net Income – As Reported and Core
Net Inc ome – A s Reported and “C ore” $16,000 $14,000 Net Income ($000s) $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- 2018 2019 2020 2021 2022 Net income before PPP, M&A, Mortgage PPP, M&A, Mortgage
Slide 10: Asset Growth
A s s et Growth Total Loans and Assets as of December 31 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2018 2019 2020 2021 2022 Total Loans Total Assets
Slide 11: Stevens Point LPO
S tev ens P oint LP O
Slide 12: Payment Product Expansion
Payment Product Expansion Zelle Co autobooks HOLDINGS, INC.
Slide 13: Richfield
Richfield Hubertus TiiReville Mequon, jior/ Center IMonches Colgate Granvili camp Whitcomb North Lake: Lac LaBelle Sronepant Merion Lannon sussex fo) ocenom Chenequa Nashotah village of Pewaukee Delafield Dousman Heath Mills ak Hil actin eraie Hales Semners; wD Frain Jericho: Bore] Muknhago. Union C
Slide 14: Open an Account Online
Open an Account Online Peoples PERSONAL — RUSIN INET 5 . = 7 J = | Work tow: a better financial future ; ‘Compare and open saving accounts from any HOLDINGS, INC.
Slide 15: PSB Holdings, Inc. Capital Raise
PS B Holdings , Inc . C apital Rais e $12 MM
Slide 16: Strength & Stability
S trength & S tability • Community Banking Model – Deposits collected are lent in the local communities we serve with conservative management • Emergency Preparedness Plan – Regularly tested • No to Government Bailout Programs – Between 2008 and 2012, Peoples was one of the most stable banks in the
Slide 17: 2023 Actions – Momentum Forward
20 23 A c tions – Momentum Forward • Stevens Point LPO to full-service branch this summer • Small footprint (1,100 feet) • Teller cash recycler • Interactive teller machines (ATMs with greater capabilities) • SBA 7(a) Program launched earlier in 2023 • Bankwide focus on training and our core values
Slide 18: Lyn Falk – New Director
Ly n Falk – New Direc tor Retailworks, Inc. President & Founder Award-winning commercial interior design, display, branding, and consulting firm
Slide 19: Future Focus on Growth
Future Foc us on Growth • Target is $1.8B in assets by December 2026 • Expect new market expansion to fill in shortfall from organic growth in current markets • Growth supports increased net book value which is a key driver of our stock price per share
Slide 20: Erik Rajek, Chief Credit Officer
E rik R ajek V ic e P res ident C hief C redit Offic er P eoples S tate B ank
Slide 21: Commercial Credit: Strengthening Our Foundation to Support Growth
C ommerc ial C redit S trengthening Our Foundation to S upport G row th
Slide 22: Who's Minding the Store?
W ho’s Minding the S tore? • 14 dedicated Credit Department employees • 2 “hubs” – Wausau & Wauwatosa • 3 fully-remote employees • 100+ years of combined experience • Ideal mix of institutional knowledge and outside perspectives • Traits such as sense of urgency, positive attitude, collaboration, an
Slide 23: Our Approach to Team Building & Culture
Our A pproac h to T eam Building & C ulture • Proactive staffing & recruiting • Competitive compensation & benefits • Work-life balance • Onboarding & ongoing training plans • Progression plan & career pathing • Rewards & recognition • Managers who drive engagement • Team building & culture is #1 pr
Slide 24: Our Approach to Credit Administration
Our A pproac h to C redit A dminis tration • Risk identification/spotlight and proper mitigation • Credit assessment carries equal weight with lender comments – partnership culture to drive the best results for Peoples • Risk-based approach to approval authorities – allows us to be responsive while
Slide 25: Key Metrics for Portfolio Health
K ey Metric s for Portfolio Health • 30% reduction in commercial “Watch List” from 2021 to 2022 - $62 million to $42 million • 70% reduction in adversely-classified (substandard) loans - $23 million to $7 million • Average-weighted risk rating improved from 3.35 in 2021 to 3.29 in 2022 • A strong, b
Slide 26: Industry Exposure Risk
Indus try E xpos ure Ris k Industry 12/31/22 9/30/22 $ Change from % of Avg. Risk Total Exposure Total Exposure prior quarter Portfolio rating Agricultural $6,793,358 $7,261,078 ($467,720) 0.74% 3.45 Automotive & Marine Dealerships $14,828,837 $15,388,026 ($559,189) 1.61% 3.25 Construction & Remodel
Slide 27: Jessica M. Brown, Chief Financial Officer
J es s ic a M . B row n S enior V ic e P res ident C hief Financ ial Offic er P eoples S tate B ank
Slide 28: Historical Net Income & Earnings Per Share
His toric al Net Inc ome & E arnings P er S hare
Slide 29: Net Income Growth
Net Inc ome Growth Before & A fter S pec ial Items ($ 0 0 0 s ) $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- 2018 2019 2020 2021 2022 Net income Net income before nonrecurring items
Slide 30: Diluted Earnings Per Share
Diluted E arnings Per S hare $3.50 $3.07 $3.00 $2.88 $2.51 $2.50 $2.40 $2.29 $2.00 $1.50 $1.00 $0.50 $0.00 2018 2019 2020 2021 2022
Slide 31: Balance Sheet Growth & Composition
B alanc e S heet G row th & C ompos ition
Slide 32: Total Assets, Loans, & Deposits
T otal A s s ets , Loans , & Depos its As of December 31, 2022 ($000s) $1,600,000 $1,337,689 $1,400,000 $1,200,000 $1,148,755 $1,000,000 $961,865 $800,000 $600,000 $400,000 $200,000 $0 2018 2019 2020 2021 2022 Loans Deposits Assets
Slide 33: Loan Composition
Loan C ompos ition 35.0% 30.2% 30.0% 25.0% 23.3% 20.5% 20.0% 17.0% 15.0% 10.0% 8.5% 5.0% 0.5% 0.0% Consumer Constr, Dev & Vac Land CRE Owner-Occ CRE Non-Owner-Occ Comm/Ag Non RE Residential RE 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022
Slide 34: Deposit Composition
Depos it C ompos ition 20.50% 22.60% 25.40% 25.70% 25.40% 35.1% 32.9% Nonint-Bearing Demand 35.7% 34.5% 37.4% Int Bearing Demand & Savings Money Market Demand Retail & Local Time 20.0% 23.5% Wholesale Deposits 18.8% 23.8% 19.8% 16.8% 13.5% 16.6% 13.6% 15.4% 7.6% 7.8% 4.4% 1.5% 1.7% 2018 2019 2020 20
Slide 35: Results Compared to Peer Banks
R es ults C ompared to P eer B ank s
Slide 36: Return on Equity vs. Peer
Return on E quity vs . Peer 16% 14% 13.47% 12% 10% 8% 6% 4% 2% 0% 2018 2019 2020 2021 2022 PSBQ Peer Group Median Peers include all publicly-traded financial institutions with assets between $1.0 billion and $2.0 billion at 12/31/2022
Slide 37: Loan Growth History vs. Peer
Loan Growth His tory vs . Peer 18.00% 16.06% 16.00% 13.65% 14.00% 12.00% 10.00% 7.99% 7.49% 10.84% 6.97% 8.00% 9.40% 6.00% 7.78% 5.99% 4.00% 2.00% 3.24% 0.00% 2018 2019 2020 2021 2022 PSBQ Peer Group Median Peers include all publicly-traded financial institutions with assets between $1.0 billion and
Slide 38: Net Interest Margin History vs. Peer
Net Interes t Margin His tory vs . Peer 3.90% 3.77% 3.80% 3.69% 3.70% 3.60% 3.68% 3.60% 3.50% 3.43% 3.42% 3.39% 3.40% 3.30% 3.35% 3.31% 3.32% 3.20% 3.10% 3.00% 2018 2019 2020 2021 2022 PSBQ Peer Group Median Peers include all publicly-traded financial institutions with assets between $1.0 billion an
Slide 39: Earning Asset Yield & Cost of Funds vs Peer
Earning A s s et Y ield & C os t of Funds vs Peer Earning Asset Yield Cost of Funds Peers include all publicly-traded Wisconsin financial institutions with assets between $1.0 billion and $2.0 billion at 12/31/2022
Slide 40: Efficiency Ratio vs. Peer
E ffic ienc y Ratio vs . Peer 70% 61.09% 60% 50% 40% 30% 20% 10% 0% 2018 2019 2020 2021 2022 PSBQ Peer Group Median Peers include all publicly-traded financial institutions with assets between $1.0 billion and $2.0 billion at 12/31/2022
Slide 41: Charge Offs vs. Peer
C harge Offs vs . Peer 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1.05% 0.92% 0.90% 0.75% 0.60% 0.56% 0.46% 0.45% 0.30% 0.32% 0.18% 0.37% 0.15% 0.08% 0.06% 0.05% 0.05% 0.01% 0.00% 0.09% 0.03% 0.01% 0.02% -0.15% -0.04% -0.30% Net Charge-offs/Ave Loans Peer Net Cha
Slide 42: Measuring Shareholder Return
M eas uring S hareholder R eturn
Slide 43: Key Data at a Glance
K ey Data at a Glanc e (Dollars in Thousands) 2018 2019 2020 2021 2022 Total Assets $915,998 $974,893 $1,131,955 $1,298,711 $1,337,689 Total Loans $658,839 $708,196 $821,910 $879,398 $961,865 Total Deposits $725,826 $781,790 $932,137 $1,105,240 $1,148,775 Tangible Common Equity $80,727 $92,578 $104,
Slide 44: Annualized Dividends per Share
A nnualiz ed Dividends per S hare $0.55 $0.50 $0.50 $0.46 $0.45 $0.42 $0.40 $0.40 $0.36 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 2018 2019 2020 2021 2022
Slide 45: Tangible Book Value per Share and AOCI Impact
T angible Book V alue per S hare and A OC I Impac t Black Labels Reflect Negative Impact. White Labels Reflect Positive Impact $27.50 $5.63 $25.00 $1.00 $0.14 $22.50 $20.00 $0.29 $21.37 $0.37 $23.43 $24.36 $17.50 $15.00 $20.72 $17.98 $12.50 $10.00 $7.50 $5.00 $2.50 $0.00 2018 2019 2020 2021 2022
Slide 46: Large Stock Buyback
Large S toc k Buybac k • In December 2022, the Federal Reserve Bank of Chicago approved our plan to repurchase up to 200,000 shares of common stock through June 30, 2023 • The buyback was funded by cash proceeds from our Capital Raise completed in November 2022 • During calendar year 2022, PSBQ repu
Slide 47: Recent Stock Buyback Trends
Rec ent S toc k Buybac k T rends $27.00 34,000 2/16/23 PSBQ purchased 33,778 32,000 33,338 shares at $25.55 $26.00 30,000 28,000 12/23/22 PSBQ purchased 26,000 $25.00 10,000 shares at $21.98 24,000 22,605 22,000 $24.00 12/29/22 PSBQ purchased 15,000 shares at $22.05 20,000 18,000 $23.00 17,280 16,00
Slide 48: Share Price Trends
hange (96) Pri Share Price Trends == PSBQ-Share Price (Daily):-23.09% IMJ PSBQ-Volume (Daily):5,185.00 == S&PUnited States BMI Banks Index-Index Value (Daily):-22.47% 8.00 0.00 8.00) 16.00) (24.00) (32.00) APSB HOLDINGS, INC.
Slide 49: DRP & ESPP Plans
DRP & E S PP Plans • DRP plan investors can choose to enroll in the plan and have quarterly stock purchases in lieu of dividends. • Continental Stock Transfer & Trust Co. will make open-market purchases once per quarter (the last day of the month following quarter end). • Initial investment in the p
Slide 50: Liquidity & Stability
Liquidity & Stability (OLDINGS, INC.
Slide 51: Q1 2023 Earnings Released April 24
Q1 2 0 2 3 E arnings R eleas ed A pril 2 4 , 2 0 2 3
Slide 52: Annual Business Meeting
Annual Business Meeting (OLDINGS, INC.
Slide 53: Questions?
Questions? (OLDINGS, INC.
Slide 54: Thank you!
Thank you! (OLDINGS, INC.