OTCPK:PSBQ

Stock Analysis Report

Executive Summary

PSB Holdings, Inc. operates as the holding company for Peoples State Bank that provides a range of retail consumer and commercial banking products and services to individuals and businesses.

Rewards

Trading at 26.9% below its fair value

Earnings have grown 9.2% per year over the past 5 years

Risk Analysis

No risks detected for PSBQ from our risk checks.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has PSB Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PSBQ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

23.7%

PSBQ

2.9%

US Banks

5.3%

US Market


1 Year Return

11.0%

PSBQ

-27.8%

US Banks

-10.7%

US Market

Return vs Industry: PSBQ exceeded the US Banks industry which returned -27.8% over the past year.

Return vs Market: PSBQ exceeded the US Market which returned -10.7% over the past year.


Shareholder returns

PSBQIndustryMarket
7 Day23.7%2.9%5.3%
30 Day-9.3%-26.3%-13.6%
90 Day-10.0%-39.3%-19.8%
1 Year12.7%11.0%-25.6%-27.8%-8.9%-10.7%
3 Year25.4%19.9%-17.1%-23.1%15.5%8.0%
5 Year101.5%85.6%10.9%-1.7%35.2%20.4%

Price Volatility Vs. Market

How volatile is PSB Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is PSB Holdings undervalued compared to its fair value and its price relative to the market?

26.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSBQ ($24.75) is trading below our estimate of fair value ($33.85)

Significantly Below Fair Value: PSBQ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PSBQ is poor value based on its PE Ratio (9.9x) compared to the Banks industry average (8.9x).

PE vs Market: PSBQ is good value based on its PE Ratio (9.9x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PSBQ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PSBQ is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is PSB Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-1.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as PSB Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether PSB Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access PSB Holdings's filings and announcements here.
  • Explore growth companies in the Banks industry.

Past Performance

How has PSB Holdings performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSBQ has high quality earnings.

Growing Profit Margin: PSBQ's current net profit margins (29.5%) are higher than last year (29.4%).


Past Earnings Growth Analysis

Earnings Trend: PSBQ's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: PSBQ's earnings growth over the past year (9.1%) is below its 5-year average (9.2% per year).

Earnings vs Industry: PSBQ earnings growth over the past year (9.1%) underperformed the Banks industry 10.9%.


Return on Equity

High ROE: PSBQ's Return on Equity (12.1%) is considered low.


Next Steps

Financial Health

How is PSB Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PSBQ has a low level of unsold assets or inventory.

Debt Coverage by Assets: PSBQ's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: PSBQ's level of assets compared to its equity is moderate.

Allowance for Bad Loans: PSBQ has a sufficient allowance for bad loans.

Low Risk Liabilities: PSBQ's liabilities are made up of primarily low risk sources of funding.

Loan Level: PSBQ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PSBQ's loans are broadly funded by customer deposits.

Level of Bad Loans: PSBQ has an appropriate level of bad loans (0.68%)


Next Steps

Dividend

What is PSB Holdings's current dividend yield, its reliability and sustainability?

1.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSBQ's dividend (1.62%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: PSBQ's dividend (1.62%) is low compared to the top 25% of dividend payers in the US market (5.37%).


Stability and Growth of Payments

Stable Dividend: PSBQ's dividends per share have been stable in the past 10 years.

Growing Dividend: PSBQ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.9%), PSBQ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Scott Cattanach (50yo)

2.25s

Tenure

US$425,529

Compensation

Mr. Scott M. Cattanach has been President and Chief Executive Officer of PSB Holdings, Inc. and Peoples State Bank since 2018. He has been a Director of PSB Holdings, Inc. since 2018 and served as its Trea ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD425.53K) is about average for companies of similar size in the US market ($USD605.16K).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Cattanach
President2.25yrsUS$425.53k0.67% $736.3k
Mark Oldenberg
Senior VP & CFO2.33yrsUS$255.25k0.070% $77.0k
Patrick Heier
Senior Vice President of Commercial Banking10.25yrsUS$302.30kno data
Tim Dively
VP & COOno datano datano data
Donna Staples
Senior Vice President of Human Resourcesno datano datano data
Maureen Jorgensen
Senior Vice President of Retail Sales & Serviceno datano datano data

2.3yrs

Average Tenure

Experienced Management: PSBQ's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Cattanach
President2.25yrsUS$425.53k0.67% $736.3k
William Fish
Independent Chairman of the Board8yrsUS$104.81k1.93% $2.1m
Charles Ghidorzi
Independent Director23.25yrsUS$22.23k0.14% $157.2k
Thomas Polzer
Independent Director25.25yrsUS$47.23k1.45% $1.6m
William Reif
Independent Director23.25yrsUS$27.59k0.96% $1.1m
Peter Knitt
Director13.75yrsUS$31.20k0.99% $1.1m
Timothy Sonnentag
Independent Director10.5yrsUS$44.06k0.17% $191.2k
Karla Kieffer
Independent Director9.25yrsUS$51.35k0.13% $146.1k
Kevin Kraft
Independent Director9.25yrsUS$26.24k0.16% $178.9k
Lee Guenther
Independent Director7.25yrsUS$44.87k0.33% $360.8k

9.9yrs

Average Tenure

63.5yo

Average Age

Experienced Board: PSBQ's board of directors are considered experienced (9.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PSB Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PSB Holdings, Inc.
  • Ticker: PSBQ
  • Exchange: OTCPK
  • Founded: 1962
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$110.223m
  • Shares outstanding: 4.45m
  • Website: https://www.psbholdingsinc.com

Number of Employees


Location

  • PSB Holdings, Inc.
  • 1905 West Stewart Avenue
  • Wausau
  • Wisconsin
  • 54401
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSBQOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 2000

Biography

PSB Holdings, Inc. operates as the holding company for Peoples State Bank that provides a range of retail consumer and commercial banking products and services to individuals and businesses. The company offers checking, savings, individual retirement, and money market accounts, as well as certificates of deposit and time deposits; and offers certificate of deposit account registry services. It also provides debit, prepaid, and credit cards; fixed rate, adjustable rate, and Wisconsin housing and economic development authority mortgages; guaranteed rural housing, veterans administration, federal housing administration, construction, land, auto, personal, and student loans; home equity line of credit and loans; overdrafts; business lines of credit, equipment financing, healthcare specialty lending, small business administration loans, and commercial real estate financing; and business acquisition and buy-outs, and cash management services. In addition, the company offers uninsured investment and insurance products; e-statements; sweeps and zero balance accounts; and online bill pay, fraud prevention, automated clearing house, and on-site deposit services, as well as online and mobile banking services. It has nine service locations in Marathon, Oneida, and Vilas counties, Wisconsin; and two loan production office in the Milwaukee, Wisconsin. The company was founded in 1962 and is headquartered in Wausau, Wisconsin. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 05:38
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.