PSB Holdings, Inc. · OTC:PSBQ
PSB — Shareholder Meeting (April 2025)
51 slides from PSB's shareholder meeting presentation, Apr 15, 2025
Slide 1: 2025 Annual Shareholder Meeting
2025 Annual Shareholder Meeting 4.15.2025
Slide 2: Agenda
Agenda • Chairman’s Welcome • 2024 Growth and Financial Review • 2025-2028 Strategic Plan • Business Meeting • Questions & Answers • Meeting Adjournment • Refreshments
Slide 3: Kevin J. Kraft, Chairman
Kevin J. Kraft Chairman PSB Holdings, Inc. Peoples State Bank
Slide 4: Scott M. Cattanach, President & CEO
Scott M. Cattanach President & CEO PSB Holdings, Inc. Peoples State Bank
Slide 5: Forward Looking Statements
Forward Looking Statements 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 Litigation
Slide 6: 2024 Growth and Investments
2024 Growth and Investments (OLDINGS, INC.
Slide 7: A Year of Transition
A Year of Transition • Quarterly Improvements in Key Measurements • Net Interest Margin • Efficiency Ratio • Return on Equity • Tangible Book Value per Share • Stock Price Return to Above Book Value Level • Earnings Continue to Recover from Dramatic Interest Rate Increases during 2022-2024, which In
Slide 8: Share Price Movement & Volume
Share Price Movement & Volume 8
Slide 9: 2024 Strategic Highlights
2024 Strategic Highlights Downtown Milwaukee Branch 790 N Jefferson Street, Milwaukee, WI 53202
Slide 10: 2024 Strategic Highlights
2024 Strategic Highlights Stewart Avenue Remodel 1905 Stewart Avenue, Wausau, WI 54401
Slide 11: 2024 Strategic Highlights
2024 Strategic Highlights Dave Larson Scott Dana Kolbe Connie Bryan Nill Wildman Higgins
Slide 12: 2024 Strategic Highlights
2024 Strategic Highlights Digital Enhancements & New Products My Credit Manager Tap to Pay Refer a Friend Program
Slide 13: Customer Testimonial (video)
Customer Testimonial (video)
Slide 14: Focusing on the Future
Focusing on the Future
Slide 15: Board of Directors
Board of Directors Retiring Joined in 2024-2025 William J. Fish Timothy A. Kilgore Jeffery J. Wickersham
Slide 16: Board of Directors
Board of Directors Proposed Andrea L. Golvach Robert D. Stoehr
Slide 17: Jessica M. Brown, Chief Financial Officer
Jessica M. Brown Executive Vice President Chief Financial Officer Peoples State Bank
Slide 18: Historical Net Income & Earnings Per Share
Historical Net Income & Earnings Per Share
Slide 19: Net Income Growth
Net Income Growth Before & After Special Items ($000s) $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- 2020 2021 2022 2023 2024 Net income Net income before nonrecurring items
Slide 20: Diluted Earnings & Dividends Per Share
Diluted Earnings & Dividends Per Share $3.50 $3.00 $2.37 $2.50 $2.00 $1.50 $1.00 $0.64 $0.50 $- 2020 2021 2022 2023 2024 Earnings per share Dividends per share
Slide 21: Balance Sheet Growth & Composition
Balance Sheet Growth & Composition
Slide 22: Total Assets, Loans, & Deposits
Total Assets, Loans, & Deposits As of December 31, 2024 (in $000s) $1,600,000 $1,465,956 $1,400,000 $1,200,000 $1,000,000 $1,147,349 $1,078,421 $800,000 $600,000 $400,000 $200,000 $0 2020 2021 2022 2023 2024 Loans Deposits Assets
Slide 23: Loan Composition
Loan Composition 60.0% 56.91% 55.0% 50.0% 45.0% 40.0% 35.0% 30.19% 30.0% 25.0% 20.0% 15.0% 12.90% 10.0% 5.0% 0.0% Commercial Commercial RE Residential RE 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024
Slide 24: Deposit Composition
Deposit Composition 40.0% 35.0% 29.40% 30.0% 25.70% 25.0% 22.60% 20.0% 17.30% 15.0% 10.0% 5.00% 5.0% 0.0% Wholesale Deposits Retail & Local Time Money Market Demand Int Bearing Demand & Savings Nonint-Bearing Demand 2020 2021 2022 2023 2024
Slide 25: Results Compared to Peer Banks
Results Compared to Peer Banks
Slide 26: Return on Average Tangible Common Equity vs. National Peer
Return on Average Tangible Common Equity vs. National Peer 16% 14% 12% 10% 9.57% 8% 6% 4% 2% 0% 2020 2021 2022 2023 2024 PSB S&P Global Market Intelligence Peer Median $1B - $5 B Assets Peers include all publicly-traded financial institutions with assets between $1.0 billion and $5.0 billion at 12/3
Slide 27: Return on Equity vs. Local Peer
Return on Equity vs. Local Peer – 5 Quarters Peers include Wisconsin-based financial institutions with assets between $1.0 billion and $3.0 billion at 12/31/2024
Slide 28: Net Interest Margin vs. Local Peer
Net Interest Margin vs. Local Peer – 5 Quarters Peers include Wisconsin-based financial institutions with assets between $1.0 billion and $3.0 billion at 12/31/2024
Slide 29: Efficiency Ratio vs. Local Peer
Efficiency Ratio vs. Local Peer – 5 Quarters Peers include Wisconsin-based financial institutions with assets between $1.0 billion and $3.0 billion at 12/31/2024
Slide 30: Measuring Shareholder Return
Measuring Shareholder Return
Slide 31: Annualized Dividends per Share
Annualized Dividends per Share Cash Dividends per share $0.70 $0.64 $0.60 $0.60 $0.50 $0.50 $0.46 $0.42 $0.40 $0.30 $0.20 $0.10 $- 2020 2021 2022 2023 2024
Slide 32: Tangible Book Value per Share and AOCI Impact
Tangible Book Value per Share and AOCI Impact Black Labels Reflect Negative Impact. White Labels Reflect Positive Impact. $32.50 $4.72 $30.00 $4.97 $27.50 $5.63 $25.00 $25.98 $1.00 $0.14 $22.50 $23.84 $20.00 $21.37 $23.43 $24.36 $17.50 $15.00 $12.50 $10.00 $7.50 $5.00 $2.50 $0.00 2020 2021 2022 2023
Slide 33: Unrealized Loss Remaining – AFS Securities
Unrealized Loss Remaining – AFS Securities As of 12/31/24 $5,000,000.0 $- $(5,000,000.0) $(10,000,000.0) $(15,000,000.0) $(20,000,000.0) $(25,000,000.0) $(30,000,000.0) 2024 2025 2026 2027 2028 Unrealized Loss - AFS Portfolio
Slide 34: Price/Earnings
Price/Earnings 14.00 12.10 12.17 12.00 10.63 10.00 9.69 9.56 9.27 9.21 8.94 8.98 8.00 7.35 6.00 4.00 2.00 0.23% 0.00 2020 2021 2022 2023 2024 PSBQ P/E Peer Median P/E Peers include all publicly-traded financial institutions with assets between $1.0 billion and $5.0 billion at 12/31/2024
Slide 35: Historical # of Shares Repurchased
Historical # of Shares Repurchased 160,000 145,997 140,000 133,948 120,000 100,000 80,000 76,634 60,000 40,000 18,434 20,000 14,593 - 2020 2021 2022 2023 2024 Shares Repurchased 35
Slide 36: DRP Plan
DRP Plan • DRP plan investors can choose to enroll in the plan and have monthly stock purchases in lieu of dividends. • Continental Stock Transfer & Trust Co. will make open-market purchases once per month. • Initial investment in the plan is $100 (maximum of $1,000). • Shares vest immediately upon
Slide 37: 2025-2028 Strategic Plan
2025-2028 Strategic Plan (OLDINGS, INC.
Slide 38: Strategy Review
Strategy Review Changing bank landscape since the pandemic: • Measured by Treasury rates, highest funding costs in over 23 years • Limited deposits available to fund new loan growth • Continued bank consolidation and increased credit union competition • Dramatic slowdown in residential mortgage dema
Slide 39: Strategy Review
Strategy Review The most successful community banks take advantage of: • Economies of scale with larger asset and equity capital size • Using technology and service tools to increase the value and experience of deposit products • Focused on serving local customers with relationships that fit well lo
Slide 40: Strategic Value Targets
Strategic Value Targets Director “North Star” goals provided to management: $2.1 billion in total assets by December 2028 with 1% return on assets Continued cash dividend growth per share Ability to purchase or sell shares in a reasonable time at current market prices Interest rate stabilization exp
Slide 41: North Star – “Let’s Grow Together”
North Star – “Let’s Grow Together” We will be a multi-billion statewide bank serving multiple markets, leveraging our competitive advantages. OUR VISION: To be a catalyst for growth with our customers. OUR MISSION: Deliver exceptional service. Build partnership. Create value. BRAND PROMISE: Our cust
Slide 42: Financial Drivers Required
Financial Drivers Required Increased asset growth from 6 to 8% per year Maintain longer term 1% ROA Seeking bank acquisition of at least $200 Million by 2028 to reach our financial growth goal of $2.1 Billion assets
Slide 43: Key Requirements for Success
Key Requirements for Success Ideal Team Player culture tied to best customer fit and high value full-service pricing. Best Fit Commercial Customers: Local business owners/operators with revenue <$25 Million/yr who benefit from a strategic partner Best Fit Retail Customers: Our neighbors seeking to m
Slide 44: Key Strategic Actions
Key Strategic Actions • Using data to improve pricing and delivery • Targeting growth to ideal customer segments and building a full product relationship by delivering customer individualized solutions • Training and incenting staff to remain focused on customer needs and bank success • Enterprise r
Slide 45: A Consolidating Industry
A Consolidating Industry • Banking remains a consolidating industry, and Wisconsin remains a state with many independent banks Total Banks & Savings Institutions 2006-2022 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Banks Savings Institutions
Slide 46: New Markets Focus
New Markets Focus • Would entertain all methods of growth, whether M&A, LPO, or new market branch. • Best markets are in, or adjacent to, our existing markets. • Best merger candidates have ownership and management teams that want to stay in banking and have a voice in operations, but with a larger
Slide 47: Challenge to get Mergers “Over the Finish Line”
Challenge to get Mergers “Over the Finish Line” • High interest rates depress the value of loans and securities, reducing the value sellers are willing to pay under current accounting rules. • Banks focused on a specific strategy can make culture fits difficult. • Issuing new equity capital such as
Slide 48: Strategy Key Points
Strategy Key Points We are changing from selling on brand and reputation (all things to all people) to selling to targeted relationships to gain all their business with relationship pricing. Leveraging a consistent, creative, and relationship-driven commercial lending model that approaches opportuni
Slide 49: Q1 2025 Earnings Released April 28, 2025
Q1 2025 Earnings Released April 28, 2025
Slide 50: Annual Business Meeting
Annual Business Meeting (OLDINGS, INC.
Slide 51: Questions?
Questions? (OLDINGS, INC.