- PSB Holdings Inc. (PSBQ, Financial) reported first-quarter 2025 earnings of $0.60 per share, down from $0.73 in the fourth quarter of 2024.
- Net interest margin improved for the fourth consecutive quarter to 3.03%.
- Loan portfolio grew by 2% to $1.10 billion, while total deposits decreased by $17.3 million to $1.13 billion.
PSB Holdings Inc. (PSBQ) announced its first-quarter 2025 financial results, reporting earnings of $0.60 per share and a net income of $2.4 million. This marks a decrease from $0.73 per share in the previous quarter but an increase from $0.39 per share in the first quarter of 2024.
The company's net interest income decreased slightly to $10.3 million, though the net interest margin improved to 3.03%. This improvement comes as asset yields increased and funding costs declined. PSB's loan portfolio expanded by $18.2 million, or 2%, largely due to growth in commercial and industrial, commercial real estate, and construction loans, reaching a total of $1.10 billion.
Despite the growth in loans, total deposits decreased by $17.3 million to $1.13 billion, attributed mainly to normal commercial money market deposit outflows and seasonal decreases in municipal deposits. Meanwhile, non-performing assets rose to $13.0 million, representing 0.89% of total assets, an increase from the previous quarter.
The tangible book value per share saw a year-over-year increase of 11.3%, reaching $26.94 by March 31, 2025. The bank's acquisition of Larson Financial Group in January 2025 contributed to higher non-interest expenses, primarily due to increased salaries and employee benefits. However, management expects operating expenses to decline in the coming quarters, maintaining a cautiously optimistic outlook on earnings growth for the remainder of 2025.
