PSB Holdings, Inc. · OTC:PSBQ
PSB — Raymond James Virtual US Bank Conference 2021
31 slides from PSB's conference presentation, Sep 8, 2021
Slide 1: Raymond James Virtual US Bank Conference
PSB Holdings, Inc. “PSBQ” Raymond James Virtual US Bank Conference September 8-9, 2021 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: Overview
PSB Holdings, Inc. Overview “PSBQ” Company Overview Financial Highlights • PSB Holdings, Inc. ($1.25 billion in assets) is the parent company of ($ in Millions) 2018 2019 2020 YTD 6/30 Peoples State Bank headquartered in Wausau, Wisconsin, serving Total Assets $916 $975 $1,132 $1,255 north central a
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: Community Reach
PSB Holdings, Inc. Community Reach “PSBQ” Community Based Business Lending Investment Mortgage and Advisory 65% of Net Income Retail Banking Approximately $1.4 17% of Net Income million gross commissions per year. PSB Holdings, Holdings, Inc. Inc. AUM = $300 million PSB Community Investment Ambassad
Slide 7: Asset Quality Trends
PSB Holdings, Inc. Asset Quality Trends “PSBQ” Commercial, Commercial Real Estate, Construction & Development, Agricultural and Government Loans ($000) Risk Rating 12/2018 12/2019 03/2020 06/2020 09/2020 12/2020 03/2021 06/2021 Rating 1 "High Quality" $ - $ - $ 71 $ 55 $ - $ - $ - $ - Rating 2 "Mini
Slide 8: Economic Recovery
PSB Holdings, Inc. Economic Recovery “PSBQ” Unemployment Rates in Primary Markets Compared to State and National Averages 24.00 21.00 18.00 15.00 12.00 9.00 6.00 3.00 0.00 Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- 20 20 20 20 20 20 20 20 20 20 21 21 21 21 21 21
Slide 9: Business Model Strengths
PSB Holdings, Inc. Business Model “PSBQ” Strengths Consistent History of Strong Earnings and Asset Growth Supported by low efficiency ratios and low-costing funds Well Diversified Loan Portfolio Industry sectors are not concentrated and represent “a little of a lot” of business types Recent and Expe
Slide 10: Net Income Trends
PSB Holdings, Inc. Net Income Trends “PSBQ” Net Income $12,000 (Dollars in Thousands) $10,000 $8,000 $2,025 $6,000 $11,247 $10,312 $10,689 $4,000 $8,436 $7,187 $6,033 $2,000 $0 2016 2017 2018 2019 2020 2021 YTD Diluted EPS $2.50 $2.00 $1.50 $0.45 $2.29 $2.51 $2.40 $1.00 $1.83 $1.58 $1.35 $0.50 $0.00
Slide 11: Balance Sheet Trends
PSB Holdings, Inc. Balance Sheet Trends “PSBQ” Total Assets (Dollars in Thousands) $1,300,000 $1,254,638 $1,200,000 $1,131,955 $1,100,000 $974,893 $1,000,000 $915,998 $900,000 $827,528 $847,681 $800,000 $700,000 $600,000 $500,000 2016 2017 2018 2019 2020 2021 Q2 Tangible Common Equity $104,816 $110,
Slide 12: Loan Portfolio
PSB Holdings, Inc. Loan Portfolio “PSBQ” LOAN PORTFOLIO AT 6/30/2021 Consumer, 0.56% Comm/Ag Non RE, Residential RE, 17.85% 21.44% Construction, Development & Vacant Land, 8.54% CRE Non-Owner Occ, 27.84% CRE Owner Occ, 23.77% 12
Slide 13: Loan Portfolio
PSB Holdings, Inc. Loan Portfolio “PSBQ” 35.0% 30.8% 30.0% 27.8% 23.8% 23.8% 25.0% 21.4% 20.9% 20.0% 17.8% 16.8% % of Loans 15.0% 10.0% 8.5% 7.1% 5.0% 0.5% 0.6% 0.0% Consumer Constr, Dev & CRE Owner- CRE Non- Comm/Ag Residential RE Vac Land Occ Owner-Occ Non RE 6/30/2020 6/30/2021 Loan Portfolio Tre
Slide 14: Milwaukee
PSB Holdings, Inc. Milwaukee “PSBQ” $1,000,000 $900,000 $800,000 $103,462 $111,460 $185,624 $700,000 (Dollars in Thousands) $71,608 $600,000 $32,826 $54,240 $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 North Woods & Central Markets
Slide 15: Shareholder Value Strategies
PSB Holdings, Inc. Shareholder Value “PSBQ” Strategies Prolonged Success in Putting The Wisconsin Banking Shareholder Capital to Work Market is Expected to • Annual ROAE has averaged Continue Consolidating 11.2% since 2010 • There are 71 banks in WI • 29 consecutive years of with assets between $150
Slide 16: Shareholder Value Strategies
PSB Holdings, Inc. Shareholder Value “PSBQ” Strategies 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 11.31% avg Stock price Cash div years: (8.42% +13.05% +6.62% 1,635 min.) TNBV/shr Avg div shares/day +9.
Slide 17: 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% 1.01% 11.60% 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 YTD 2016 2017 2018 2019 2020 2021
Slide 18: Loan Loss Reserves
PSB Holdings, Inc. Loan Loss Reserves “PSBQ” Loan Loss Reserves/Total Loans 1.90 1.70 1.50 1.30 1.10 0.90 0.70 2021 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q2 MW Banks Between $500M & $5B 1.13 1.20 1.43 1.56 1.61 1.56 1.49 1.37 1.29 1.22 1.18 1.18 1.17 1.30 1.40 Wisc Ba
Slide 19: Per Share Trends
PSB Holdings, Inc. Per Share Trends “PSBQ” Diluted EPS Tangible Book Value Per Share $3.00 $25.00 $23.43 $23.53 $2.51 $2.40 $23.00 $2.29 $20.72 $2.50 $21.00 $1.83 $19.00 $17.98 $2.00 $16.28 $1.58 $17.00 $15.08 $1.50 $1.35 $15.00 $13.00 $1.00 $11.00 $0.50 $9.00 $7.00 $0.00 $5.00 2016 2017 2018 2019 2
Slide 20: 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% 1.59% * 1.46% 1.49% 1.50% 1.27% 1.04% 1.07% 1.00% 0.90% 0.83% 0.67% 0.23% 0.55% 0.50% 0.01% 0.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 21: Paycheck Protection Program (PPP)
PSB Holdings, Inc. Paycheck Protection “PSBQ” Program (“PPP”) People State Bank’s Response By The Numbers: Round 1 • PPP Loans Approved: 736 • Total Dollars Deployed: $116.9 Million • Current Balance: $7.5 Million • Remaining Net Deferred Fees ($000): $ 132,000 Round 2 • PPP Loans Approved: 268 • To
Slide 22: PPP Earnings Impact
PSB Holdings, Inc. PPP Earnings Impact “PSBQ” PSB Holdings, Inc. Consolidated Statements of Income Quarter Ended Year Ended (dollars in thousands, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, December except per share data - unaudited) 2021 2021 2020 2020 2020 2020 2019 Interest and dividend income:
Slide 23: Deposit Portfolio
PSB Holdings, Inc. Deposit Portfolio “PSBQ” Wholesale Deposits Retail & Local Time Money Market Demand Int Bearing Demand & Savings Nonint-Bearing Demand 20.90% 21.60% 20.50% 22.60% 25.40% 26.50% 32.9% 34.1% 35.1% 32.9% 35.7% 35.4% 20.7% 20.1% 20.0% 23.5% 23.8% 20.6% 17.0% 16.5% 16.8% 16.6% 13.6% 16
Slide 24: 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 25: Key Data at a Glance
PSB Holdings, Inc. Key Data at a Glance “PSBQ” (Dollars in Thousands) 2016 2017 2018 2019 2020 2021 YTD Total Assets $827,528 $847,681 $915,998 $974,893 $1,131,955 $1,254,638 Total Loans $586,911 $610,076 $658,839 $708,196 $821,910 $865,010 Total Deposits $686,760 $702,303 $725,826 $781,790 $932,137
Slide 26: 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
Slide 27: Appendix
PSB Holdings, Inc. “PSBQ” Appendix Waukesha Bancshares and its subsidiary, Sunset Bank & Savings, Acquisition 27
Slide 28: Sunset Bank & Savings
PSB Holdings, Inc. Sunset Bank & Savings “PSBQ” Historical Financials Pro Forma Branch Map (Dollars in thous ands ) 201 7 201 8 201 9 2020 Ba la nce S he e t Total As s ets 1 27,333 1 27,073 1 30,563 1 36,473 Total Loans HFI 93,799 1 00,467 95,598 89,224 Total Depos its 1 08,499 1 05,838 1 1 3,341 1
Slide 29: Sunset Bank & Savings Acquisition Rationale
PSB Holdings, Inc. Sunset Bank & Savings “PSBQ” Acquisition Rationale • Doubled PSBQ’s presence in Milwaukee market to approximately $250 million in assets after starting a de-novo loan production office in 2016 • Established a meaningful presence in Waukesha County, which consistently shows strong
Slide 30: Strong Demographics
PSB Holdings, Inc. Strong Demographics “PSBQ” Median Household Income % of HH w/ Income >$100k $80,000 14.00 $70,000 12.00 $60,000 10.00 $50,000 8.00 $40,000 6.00 $30,000 $20,000 4.00 $10,000 2.00 $0 0.00 Marathon Vilas Oneida Milwaukee Wisconsin US Marathon Vilas Oneida Milwaukee Wisconsin US MSA M
Slide 31: Loan Growth since April 2016
PSB Holdings, Inc. Loan Growth since April “PSBQ” 2016 $350,000 $300,000 $250,000 (Dollars in Thousands) $200,000 $150,000 $100,000 $50,000 $0 Total Bankwide Loan Growth Milwaukee Area Loan Growth 31
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