PSB Holding Corp. Reports First Quarter 2021 Results

News provided by

PSB Holding Corp.

Apr 28, 2021, 14:57 ET

PRESTON, Md., April 28, 2021 /PRNewswire/ -- PSB Holding Corp. (OTC-QX: PSBP), the parent company of Provident State Bank, Inc. ("Provident"), reported net income of $1.21 million ($.79 per diluted common share) for the first quarter ended March 31, 2021, compared to $1.44 million ($.94 per diluted common share) for the fourth quarter 2020 and $940,000 ($.61 per diluted common share) for the first quarter 2020.

When comparing net income for the first quarter 2021 to the fourth quarter 2020, net income decreased $229,000 primarily as a result of a decrease in mortgage banking activity driven by increasing long-term rates during the first quarter 2021.  Specifically, gain on sale of loans decreased $242,000 on a linked-quarter basis.

When comparing net income for the first quarter of 2021 to the first quarter of 2020, net income increased $274,000 or 29.1%.  The increase was largely the result of earned net fees on loans originated under the Small Business Administration's Payroll Protection Program ("PPP"), which began in April 2020, an increase in average investment balances (including interest-bearing deposits and federal funds sold) and an increase in gain on sale of loans.  These positive influences on net income were offset by pressure on the net interest margin.  Amortized net fees on PPP loans for the first quarter 2021 totaled $667,000.  Average investment balances increased from $71.58 million during the first quarter 2020 to $142.30 million during the first quarter 2021 with an average yield of 1.21% in first quarter 2021 compared to 2.15% in the first quarter 2020.  Gain on sale of loans increased $97,000.  The net interest margin declined from 3.70% during the first quarter 2020 to 3.42% during the first quarter 2021.  The net interest margin, exclusive of amortized net fees on PPP loans, was 3.09% during the first quarter 2021.  Average earning assets increased from $435.18 million in 2020 to $527.13 million, inclusive of average PPP loans of $41.41 million, in 2021.  The increase in gain on sale of loans and the decline in the net interest margin were the result of a lower interest rate environment pursued by the Federal Reserve to stabilize the economy during the pandemic.

Assets totaled $571.7 million at March 31, 2021, increasing $22.4 million or 4.1% compared to December 31, 2020 and $109.2 million or 23.6% compared to March 31, 2020. Growth in assets was driven primarily by growth in deposits as government stimulus increased customer liquidity.  Deposits totaled $473.7 million at March 31, 2021 compared to $449.4 million at December 31, 2020 and $367.1 million at March 31, 2020, representing growth of 5.4% and 29.1%, respectively.  Gross loans decreased $3.1 million to $383.0 million, a 1.0% decrease as compared to December 31, 2020.  Gross loans increased $22.1 million or 6.1% compared to March 31, 2020 primarily as a result of PPP loan origination activity.  As of March 31, 2021, non-performing assets and past due loans were .34% of total assets. 

President and Chief Executive Officer Melissa Quirk commented, "Performance continued to remain strong with our fourth consecutive quarter of earnings in excess of $1.1 million, a first for our company. Our strong performance during this period was the result of our proactive initiative to participate in the PPP and our ability to maintain core business activities during an unprecedented pandemic.  We remain grateful for the commitment of our staff and the patience of our customers during this extraordinary time."

PSB Holding Corp. is the holding company of Provident State Bank, Inc., a full service financial institution serving the eastern shore of Maryland since 1904. Provident State Bank, Inc. has ten locations in Preston, Federalsburg, Ridgely, Denton, Easton-Elliot Road, Easton-Harrison Street, Secretary, Cambridge, Salisbury and Lewes (Delaware).  For more information on PSB Holding Corp. and Provident State Bank, Inc., visit www.providentstatebank.com.

Forward-Looking Statements

Forward-looking statements relating to PSB Holding Corp. and its subsidiary, Provident State Bank, Inc. may include plans, strategies, objectives, expectations, intentions and adequacy of resources.  All statements other than statements of historical fact, including, without limitation, statements regarding business strategy, future events, activities, performance, and plans and objectives for future operations, are forward-looking statements.  Therefore, the illustrative value of forward-looking statements made in or pursuant to this press release should not, under any circumstances, be considered a guaranty or promise that such future events, activities, occurrences or performances will take place.

CONDENSED CONSOLIDATED BALANCE SHEETS












(unaudited)


(unaudited)

Percent Change from

Mar 31, 2021

Dec 31, 2020

Mar 31, 2020

Dec 31, 2020

Mar 31, 2020

Assets









Cash and cash equivalents

$    44,956,382

$    29,162,136

$    19,641,503

54.2%

128.9%

Investment securities

122,078,560

111,930,314

59,796,786

9.1%

104.2%

Loans held for sale

1,414,221

2,367,448

1,988,172

-40.3%

-28.9%

Loans receivable

383,048,584

386,189,190

360,979,154

-0.8%

6.1%

  Less allowance for loan losses

3,675,068

3,583,204

3,409,206

2.6%

7.8%

Loans, net of allowance for loan losses

379,373,516

382,605,986

357,569,948

-0.8%

6.1%

Property and equipment

8,196,751

8,401,637

9,694,554

-2.4%

-15.4%

Bank-owned life insurance

8,712,098

8,656,454

8,471,644

0.6%

2.8%

Lease assets

2,443,106

2,508,345

2,675,508

-2.6%

-8.7%

Accrued interest receivable

1,484,262

1,616,775

1,314,693

-8.2%

12.9%

Other assets

3,044,696

2,103,866

1,315,594

44.7%

131.4%

    Total assets

$  571,703,592

$  549,352,961

$  462,468,402

4.1%

23.6%











Liabilities and Stockholders' Equity









Deposits:









    Noninterest-bearing

$  210,026,953

$  171,855,568

$  139,853,993

22.2%

50.2%

    Interest-bearing

263,682,755

277,526,516

227,202,014

-5.0%

16.1%

        Total deposits

473,709,708

449,382,084

367,056,007

5.4%

29.1%

Repurchase agreements

11,891,020

15,528,356

7,447,748

-23.4%

59.7%

FHLB advances and other borrowing

32,801,481

31,078,123

38,907,389

5.5%

-15.7%

Lease liabilities

2,639,068

2,685,641

2,839,341

-1.7%

-7.1%

Other liabilities

2,016,381

1,934,558

1,277,975

4.2%

57.8%

    Total liabilities

523,057,658

500,608,762

417,528,460

4.5%

25.3%

Stockholders' equity

48,645,934

48,744,199

44,939,942

-0.2%

8.2%

Total liabilities and equity

$  571,703,592

$  549,352,961

$  462,468,402

4.1%

23.6%











Book value per common share

$               31.76

$               31.82

$               29.34

-0.2%

8.2%











CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)


Three Months Ended


Percent Change from

Mar 31, 2021

Dec 31,2020

Sep 30, 2020

Jun 30, 2020

Mar 31, 2020

Dec 31, 2020

Mar 31, 2020

Interest income












Loans, including fee income

$ 4,763,112

$ 4,988,220

$ 4,796,814

$ 4,758,983

$ 4,591,832

-4.5%

3.7%

Investment securities

423,879

334,830

305,329

332,732

346,973

26.6%

22.2%

Other interest income

6,144

10,291

7,190

5,014

38,468

-40.3%

-84.0%

        Total interest income

5,193,135

5,333,341

5,109,333

5,096,729

4,977,273

-2.6%

4.3%

Interest expense












Deposits

534,280

570,013

616,225

657,010

707,952

-6.3%

-24.5%

Repurchase agreements

1,079

1,298

782

1,036

4,945

-16.9%

-78.2%

FHLB advances

175,472

187,295

195,442

204,654

211,894

-6.3%

-17.2%

Other borrowings

34,937

36,686

38,461

39,834

40,298

-4.8%

-13.3%

        Total interest expense

745,768

795,292

850,910

902,534

965,089

-6.2%

-22.7%

Net interest income

4,447,367

4,538,049

4,258,423

4,194,195

4,012,184

-2.0%

10.8%

Provision for loan losses

90,000

20,000

130,000

180,000

118,500

350.0%

-24.1%

        Net interest income after provision

4,357,367

4,518,049

4,128,423

4,014,195

3,893,684

-3.6%

11.9%

Noninterest income












Service charges

417,139

416,823

412,317

374,471

423,478

0.1%

-1.5%

Gain on sale of loans

260,464

502,302

397,309

243,830

163,444

-48.1%

59.4%

Gain on sale of securities

-

18,557

-

25,470

-

-100.0%

NM

Other noninterest income

53,264

66,597

69,745

71,046

74,609

-20.0%

-28.6%

        Total noninterest income

730,867

1,004,279

879,371

714,817

661,531

-27.2%

10.5%

Noninterest expense












Salaries and benefits

1,808,276

1,905,737

1,843,439

1,706,479

1,771,823

-5.1%

2.1%

Occupancy

513,208

507,121

488,246

492,731

521,550

1.2%

-1.6%

Data processing and software

312,620

294,390

287,995

268,884

234,771

6.2%

33.2%

Other noninterest expense

839,505

894,306

715,565

746,696

783,748

-6.1%

7.1%

        Total noninterest expense

3,473,609

3,601,554

3,335,245

3,214,790

3,311,892

-3.6%

4.9%

Net income before tax

1,614,625

1,920,774

1,672,549

1,514,222

1,243,323

-15.9%

29.9%

Tax expense

401,375

478,399

420,666

376,544

303,494

-16.1%

32.3%

Net income

$1,213,250

$ 1,442,375

$ 1,251,883

$ 1,137,678

$     939,829

-15.9%

29.1%














Net income per share

$         0.79

$           0.94

$           0.82

$           0.74

$           0.61

-15.9%

29.1%

SOURCE PSB Holding Corp.

Related Links

http://www.providentstatebank.com/

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