According to the company’s press release via GlobeNewswire, PSB Holdings, Inc. (OTCQX: PSBQ), the holding company for Peoples State Bank, reported second-quarter 2026 earnings of $0.81 per diluted common share on net income of $3.3 million for the quarter ended June 30, 2026. That’s essentially in line with $0.82 per diluted share in the first quarter of 2026, but down from $0.89 per diluted share in the second quarter of 2025.
The Pending Merger
The dominant story behind this quarter’s results is PSB’s pending acquisition by Bank First Corporation. PSB announced on May 19, 2026 that it had entered into an all-stock merger agreement under which Bank First will acquire 100% of PSB’s common stock. Under the deal terms, each PSB shareholder will receive 0.3470 of a share of Bank First common stock for each PSB share held — an aggregate consideration valued at approximately $202.9 million, based on Bank First’s closing stock price of $143.66 on May 18, 2026.
Scott Cattanach, PSB’s President and CEO, said the company remains focused on generating strong shareholder profitability, noting that operational efficiencies improved during the quarter even as PSB works through the pending merger. He added that the deal’s terms were well received by shareholders, representing an acquisition price 83% higher than PSB’s trading price the day before the announcement, and that the company has filed all required regulatory applications, with hopes of securing regulatory and shareholder approvals in the third quarter and a possible closing extending into early Q4.
Second-Quarter Highlights
Excluding merger-related expenses, net income was $3.8 million, or $0.94 per diluted share, with an efficiency ratio of 62.7% for the quarter.
Net interest income rose $259,000 to $12.1 million, up from $11.9 million in the first quarter, driven by higher loan balances, higher yields, and lower deposit and borrowing costs. Net interest margin improved to 3.44% for the quarter.
Noninterest income declined $200,000 to $2.1 million, down from $2.3 million in the prior quarter, largely due to lower investment and insurance sales commissions; the first quarter had been elevated by a life insurance benefit payout and gains on SBA 7(a) loan sales.
Noninterest expenses decreased $94,000 to $9.7 million, reflecting lower salary and benefit costs from reduced incentive accruals and staff reductions — though merger-related expenses rose to $671,000 for the quarter, up from $120,000 in the prior quarter.
Balance Sheet and Asset Quality
Net loans grew $17.6 million during the quarter to $1.13 billion, while total deposits declined $8.8 million to $1.18 billion, driven mainly by lower core and brokered deposits. Non-performing assets improved slightly to 1.08% of total assets, down from 1.09% the prior quarter, with the allowance for credit losses rising to 1.17% of gross loans.
Return on average tangible common equity was 10.62% for the quarter, down from 10.90% in Q1 and 13.11% a year earlier. Tangible book value per common share rose 12.6% year-over-year to $31.27, up from $27.77 at June 30, 2025.
About PSB Holdings
PSB Holdings, Inc. is the parent company of Peoples State Bank, a community bank headquartered in Wausau, Wisconsin, serving northcentral and southeastern Wisconsin from twelve full-service banking locations across Marathon, Oneida, Vilas, Portage, Milwaukee, and Waukesha counties. Peoples also offers investment, insurance, and retirement planning services through Peoples Wealth Management.