PSB Holdings, Inc. · OTC:PSBQ
PSB — Shareholder Meeting (September 2021)
51 slides from PSB's shareholder meeting presentation, Sep 14, 2021
Slide 1: The picture can't be displayed.
The picture can't be displayed. 1
Slide 2: Welcome
Welcome Scott M. Cattanach President & CEO PSB Holdings, Inc. Peoples State Bank
Slide 3: Agenda
Agenda President’s Message • Customers & Growth • Community • Shareholder Impact Financial Presentation Questions & Answers Reception
Slide 4: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Certain matters discussed in this presentation, including 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 Lit
Slide 5: Who is Today's Peoples State Bank?
Who is Today’s Peoples State Bank? 10 full-service locations in north central and southeastern Wisconsin with $1.25 billion in assets. In north central Wisconsin, Peoples State Bank (Peoples) has the leading community bank market share in deposits. PSB Holdings, Inc. is the parent of Peoples and is
Slide 6: Who is Today's Peoples State Bank?
Who is Today’s Peoples State Bank? AWARD WINNING SERVICE • Shareholder focused – American Banker Magazine “Top 200 Community Banks” list in 2021 for 12 consecutive years • Customer focused – Peoples State Bank voted “Best Bank in Marathon County” by readers of the Wausau Daily Herald for the past 10
Slide 7: Who is Today's Peoples State Bank?
Who is Today’s Peoples State Bank? Year-to-date Customer Average Assets
Slide 8: Who is Today's Peoples State Bank?
Who is Today’s Peoples State Bank? # of Loan Accounts June 30, 2021 Retail 1,710 Mortgage 5,228 Mortgage-Seconday Market 4,909 Commercial Average Loan Size $2,705 - Retail 4,601 $170,534 - Mortgage (originated in 2nd Qtr) $188,207 - Mortgage-Secondary Market (YTD) $337,975 - Commercial (originated i
Slide 9: Peoples Management
Peoples Management Scott Cattanach Mark Oldenberg Tim Dively Pat Heier President & CEO CFO & Investor Relations Chief Technology Commercial Banking & Operating Officer Group Leader Jeff Saxton Robert McPherson Jeff Musa Craig Lau Retail Group Leader Risk Management SE Wisconsin Northern Wisconsin Pr
Slide 10: New Market Growth
PSB Holdings, Inc New Market Growth
Slide 11: Milwaukee Growth - West Allis Opens
Milwaukee Growth - WestWest AllisAllis Opens The picture can't be displayed. • Original Content loan production office opened April 2016 when local banker Jeff Musa was hired • An existing vacant bank branch was purchased in 2019 and remodeled • Opened the full-service location in March 2020, at 107
Slide 12: Waukesha Acquisition
Waukesha Sunset Acquisition Acquisition The picture can't be displayed. • Gain entry into adjacent, higher • Content growth market to our new West Allis branch for commercial customer growth • Jump start our retail banking operation with a set of long-time retail and mortgage customers • Manageable
Slide 13: Peoples Acquisition - Sunset Waukesha
PeoplesAcquisition Sunset - Waukesha The picture can't be displayed. • Hired Chadd Frank, • Content to lead Waukesha market • Sunset Bank CEO, Robert Eastman, Jr., joined Peoples Board of Directors • Now have ~$250 million in Milwaukee area total assets, about 20% of total Peoples assets
Slide 14: Milwaukee Area Market Growth since April 2016
Milwaukee area Market Growth since April 2016 $350,000 $300,000 $250,000 $200,000 (Dollars in Thousands) $150,000 $100,000 $50,000 $0 18 19 20 8 8 8 9 9 9 0 0 0 1 1 01 01 01 01 01 01 02 02 02 02 02 20 20 20 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 1/ 1/ 1/ 31 30 30 31 30 30 31 30 30 31 30 /3 /3 /3 3/ 6/ 9/
Slide 15: Facility Updates
Facility Updates Peoples State Bank - Marathon
Slide 16: Peoples - Waukesha
Peoples - Waukesha • Expand from 7 offices to 15 offices within same footprint • Consolidates staff from 2 other locations to this remodeled site, gaining efficiencies • Provide staff and customers the newest technology for a great experience • Late fall/early winter start
Slide 17: Stewart Ave. Lobby Remodel
Stewart Ave. Lobby Remodel • Transition to new customer experience • Customer still receive personal service on entry • On the spot options for self- service at kiosk, help by our personal banker, and transaction at existing teller line • Work expected to begin in November
Slide 18: Commercial Banking
PSB Holdings, Inc Commercial Banking
Slide 19: PPP Lending
PPP Lending Dollar Amounts in ($00) Round 1 Round 2 June 30, 2021 Balance PPP Loans Approved: 736 268 1,004 Total Dollars Deployed: $116,900 $34,500 $151,400 Current Balance: $7,500 $33,800 $43,500 Remaining Net Deferred Fees: $132 $1,074 $1,206 Acquired PPP Loans from Sunset: $2,200 Gross Income fr
Slide 20: PPP Success
PSB Holdings, Inc. PPP Success
Slide 21: Community Proud
PSB Holdings, Inc. awe ity PROUD TO oo ~ aa
Slide 22: Peoples Sports Complex
PSB Holdings. Inc. Peoples Sports Complex
Slide 23: Rhinelander Hodag Dome
Rhinelander Hodag Dome One of the largest domed athletic complexes in the Upper Midwest
Slide 24: Shareholder Impact
PSB Holdings, Inc Shareholder Impact ——
Slide 25: Board of Directors
Board of Directors Scott M. Cattanach Robert F. Eastman William J. Fish Lee A. Guenther Patricia M. Hanz Karla M. Kieffer Kevin J. Kraft Peter W. Knitt Corey B. Vanderpoel
Slide 26: Retiring Directors
Retiring Directors Charles A. Ghidorzi Thomas R. Polzer William M. Reif (since 1997) (since 1992) (since 1997)
Slide 27: Capital Position for Growth
Capital Position for Growth At June 30, 2021, Peoples State Bank had existing equity that would support $104M of asset growth At June 30, 2021, Peoples State Bank had $63M in overnight cash available for investment
Slide 28: Long-term Shareholder Value
Long-term Shareholder Value …Customer and community focused for shared success …Relationship based collaborative model …Diversified customer base, markets, and fee-based income sources …Ongoing and past investments in technology and regulation compliance …Have a combination of people, markets, and f
Slide 29: 5-Year Look Back
PSB Holdings, Inc. 5-Year Look Back Shareholder Value (5 year lookback at June 30, 2021) Regular book Price increases Growing Liquidate value growth tied to NBV growth dividend when desired S yr ROE 5S yr CAGR Syr CAGR Past 5 years: 11.84% avg Stock price +11.84% Cash div +8.70% 1,695 shares/day (9.
Slide 30: 10-Year Look Back
PSB Holdings, Inc. 10-Year Look Back Shareholder Value (10 year lookback at June 30, 2021) Regular book Price increases Growing Liquidate value growth tied to NBV growth dividend when desired 10 yr ROE 10 yr CAGR 10 yr CAGR Past 10 years: 11.31% avg Stock price +13.05% Cash div +6.62% 1,635 shares/d
Slide 31: 29 Consecutive Years of Increased Dividends
29 Consecutive Years of Increased Dividends Assuming an 8.70% annual cash dividend increase and purchase at $25.15/share: Year one – $0.46 / $25.15 original cost = 1.83% dividend yield Year two - $0.50 / $25.15 = 1.99% Year three - $0.54 / $25.15 = 2.15% Year four - $0.59 / $25.15 = 2.35% Year five
Slide 32: In Memoriam
In Memoriam • Among group of Wausau businessmen who founded Peoples State Bank in 1962 • Served the board of directors from 1981 to 2002 Larry Hanz 1924 - 2021
Slide 33: Mark Oldenberg
Mark Oldenberg Senior Vice President Chief Financial Officer PSB Holdings, Inc. Peoples State Bank
Slide 34: Business Model Strengths
Business Model 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 Expected Growth in Milwaukee M
Slide 35: Balance Sheet Trends
Balance Sheet Trends Total Assets (Dollars in Thousands) $1,300,000 $1,254,638 $1,200,000 $1,131,955 $1,100,000 $1,000,000 $974,893 $915,998 $900,000 $847,681 $827,528 $800,000 $700,000 $600,000 $500,000 2016 2017 2018 2019 2020 2021 Q2
Slide 36: Balance Sheet Trends
Balance Sheet Trends Tangible Common Equity (Dollars in Thousands) $110,000 $100,000 $90,000 $104,312 $104,816 $80,727 $80,000 $92,578 $73,669 $68,939 $70,000 $60,000 $50,000 $40,000 2016 2017 2018 2019 2020 2021 Q2
Slide 37: Loan Portfolio
Loan Portfolio LOAN PORTFOLIO AT 6/30/2021 Comm/Ag Non RE, Consumer, 0.56% 17.85% Residential RE, 21.44% Construction, Development & Vacant Land, 8.54% CRE Non-Owner Occ, 27.84% CRE Owner Occ, 23.77%
Slide 38: Loan Portfolio
Loan Portfolio 35.0% 30.8% 30.0% 27.8% 25.0% 23.8% 23.8% 20.9% 21.4% 20.0% 17.8% 16.8% 15.0% 10.0% 8.5% 7.1% 5.0% 0.5% 0.6% 0.0% Consumer Constr, Dev & Vac CRE Owner-Occ CRE Non-Owner-Occ Comm/Ag Non RE Residential RE Land 6/30/2020 6/30/2021
Slide 39: Loan Portfolio Trends
Loan Portfolio Loan Portfolio Trends (Dollars in Thousands) $900,000 $865,010 $821,910 $800,000 $708,196 $700,000 $658,839 $610,076 $600,000 $586,911 $500,000 $400,000 2016 2017 2018 2019 2020 2021 Q2
Slide 40: Deposit Portfolio
Deposit Portfolio 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% 16.2% 8.5% 7.7% 7.6% 4.4% 1.5% 1.3% 2016 2017 2018 2019 2020 2021 Q2 Wholesale Deposits Retail & Local Time Money Market Demand Int Bearin
Slide 41: Deposit Trends
Deposit Portfolio Deposit Trends 0.88% $1,031,626 0.69% $1,000,000 $932,137 $781,790 $750,000 $686,760 $702,303 $725,826 0.64% $500,000 0.46% 0.43% $250,000 0.21% $0 2016 2017 2018 2019 2020 2021 Q2 Total Deposits Cost of Total Deposits
Slide 42: Asset Quality Trends
Asset Quality Trends NPA/Assets, Reserves/Total Loans and Charge-Off History 2.81% 2.87% 2.64% 2.08% 1.96% 1.77% 1.59% 1.46% 1.49% 1.27% 1.04% 1.07% 0.83% 0.90% 0.67% 0.55% 0.01% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2 NPA/Assets Loan Loss Reserves/Total Loans N
Slide 43: Earnings Trends
Earnings Trends ROAA ROATC 1.19% 1.22% 13.46% 1.07% 12.48% 12.77% 1.01% 1.01% 10.83% 11.60% 0.87% 9.84% 2016 2017 2018 2019 2020 2021 YTD 2016 2017 2018 2019 2020 2021 YTD Net Interest Margin Efficiency Ratio 3.62% 62.98% 3.54% 3.56% 3.55% 60.82% 3.46% 58.96% 59.29% 59.11% 3.19% 54.17% 2016 2017 201
Slide 44: Net Income Trends
Net Income Trends Net Income $11,247 $10,312 $10,689 $8,436 $2,025 $7,187 $6,033 2016 2017 2018 2019 2020 2021 YTD Reflects impact of after-tax merger expenses Excluding after-tax merger expenses, YTD net income would have been $8.1 million, and YTD EPS would have been $1.80
Slide 45: Net Income Trends
Net Income Trends Diluted EPS $2.51 $2.40 $2.29 $1.83 $0.45 $1.58 $1.35 2016 2017 2018 2019 2020 2021 YTD Reflects impact of after-tax merger expenses Excluding after-tax merger expenses, YTD net income would have been $8.1 million, and YTD EPS would have been $1.80
Slide 46: Per Share Trends
Per Share Trends Diluted EPS Tangible Book Value Per Share $23.43 $23.53 $2.29 $2.51 $2.40 $20.72 $1.83 $17.98 $1.58 $15.08 $16.28 $1.35 2016 2017 2018 2019 2020 2021 YTD 2016 2017 2018 2019 2020 2021 Q2 Annualized Dividend Per Share $0.46 $0.40 $0.42 $0.36 $0.30 $0.32 2016 2017 2018 2019 2020 2021
Slide 47: Investing in Your Community
PSB Holdings, Inc. Investing ” Your Community
Slide 48: Investment Appeal
Investment Appeal 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 Opportunities and Acquisit
Slide 49: Peoples Wealth Management
Peoples Wealth Management Jeff Isaacson Dan Augustine Bryan Nill
Slide 50: Questions?
Questions?
Slide 51: Thank You!
PSB Holdings, Inc. Thank You!