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THE ANNUAL
REPORT growig fr the future
888.929.9902
psbholdingsinc.com | bankpeoples.com
PSB Holdings, Inc.
2021 Annual Report
growig fr the future
While maintaining our leading market share in northcentral Wisconsin,
Peoples expanded further in southeastern Wisconsin with the acquisition
of Waukesha’s Sunset Bank & Savings.
The acquisition provides an opportunity for future growth in a market
expanding from commercial and retail perspectives. We’re confident
our customer- and community-focused approach will set us apart in
southeastern Wisconsin.
Our customers look for excellent customer service, no matter how they
choose to bank at Peoples. It’s what we’ve provided to them since we opened
our doors in 1962 and what we’ll continue to provide—even as we look for
new markets and new banking partners.
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33 Wisconsin counties
with $1 million+ in
loan commitments
$53 million*
net local
deposit growth
$44 million*
commercial net
loan growth
$205 million*
new residential
mortgage
loan volume
$2 million
wealth management
gross revenue
*Excluding Sunset acquisition and/or PPP loans
SCOTT M. CATTANACH
PRESIDENT & CHIEF EXECUTIVE OFFICER
PSB Holdings Inc. & Peoples State Bank
MESSAGE FROM
THE PRESIDENT
To our Sharehoders,
On behalf of our staff and management, I am proud to present 2021 highlights that reflect our team’s focus
on growth and excellent personal customer service. We are committed to providing outstanding products
and services in our communities to build lasting shareholder value through independence and growth.
GROWTH
2021 ended with record total assets of nearly $1.3 billion, up 15% during the year and up 33%
since January 2020 before the COVID pandemic began. We reached this milestone due in part to
the 2021 acquisition of the $135 million Sunset Bank & Savings in Waukesha, Wisconsin, along
with organic loan and deposit growth across our northern, central, and southeastern Wisconsin
regions. The Milwaukee area continues to be a strong growth driver, providing approximately
50% of the 2021 asset growth when including our Waukesha acquisition. In fact, the Peoples’
southeastern Wisconsin team has grown from one employee five years ago to having two full-
service bank locations and $240 million in assets today.
Since the pandemic began, we helped customers obtain Small Business Administration’s
(SBA) Paycheck Protection Program (PPP) loans used to continue their employee and related
costs but focused in 2021 on assisting customers in obtaining PPP loan forgiveness. We
originated $151 million in PPP loans during 2020 and 2021, of which $137 million had been
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ANNUAL REPORT | 2021
forgiven or repaid by December
31, 2021. The 2021 economic
EARNINGS AND DIVIDENDS
Recognition of PPP loan origination
recovery in Wisconsin, along with
fees of $3.4 million and a $4.6 million
several SBA loan programs available
reduction in provision for loan losses
to customers, maintained customer
offset a $2.7 million decline in mortgage
loan payments with improving credit
banking income (as the low-rate
quality in 2021 and much lower
refinance wave cooled) and $2.8 million
provisions for loan losses.
of Waukesha acquisition expenses
Peoples has consistently increased
during 2021. Earnings were $2.88
our participation in the SBA 504
per share in 2021 compared to $2.40
lending program, allowing customers
per share in 2020, up 20%. Return
to finance a portion of their business
on equity remained strong at 11.63%
expansion at attractive long-term fixed
during 2021 compared to 10.83%
rates while bolstering our collateral
during 2020. We were pleased to
position. Peoples State Bank was the
increase our shareholder cash dividend
largest 504 loan provider through
from $0.42 per share in 2020 to $0.46
WBD, Inc. (Wisconsin Business
Development) during 2021.
per share in 2021, up nearly 10%.
Even after recognition of intangible
Stimulus checks and supply chain
assets associated with our acqusition
slowdowns that limited spending
of Sunset Bank & Savings Waukesha,
contributed to sharp deposit
our tangible net book value increased
growth during 2021, up nearly 6%
to $24.36 per share on December 31,
before considering the Sunset Bank
2021, up 4% during the year.
Waukesha acquisition and up $173
million including the acquisition. It
was also a record year for Peoples
Wealth Management as assets under
CUSTOMER SATISFACTION
HIGHLIGHTS
We continue to invest in the digital tools and
management grew to $320 million,
products desired by our growing customer
generating almost $2 million of service
base. Our recent surveys indicate that 45
fee income.
percent of customers prefer our online
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banking tool, 35 percent prefer to visit in
person, and 13 percent prefer our Bank
Peoples digital app. We seek to provide a
great experience across whatever channel
the customer chooses to bank with us. Our
customers are our strongest promoters,
significantly more likely to refer Peoples to a
friend than the typical bank customer.
As a community bank, we seek to
serve both our customers and the larger
community. That’s why we encourage
and provide paid volunteer time for
our staff to give back. It’s also why we
contribute to local initiatives that benefit
the well-being of our local neighbors. Our
$250,000 of donations in 2021 included
a long-term commitment to sponsor
Peoples Sports Complex in Wausau and
significant contributions to the Hodag
Dome indoor sports and recreation
facility and the Hodag Park amphitheater
in Rhinelander. You can read more about
Dan Augustine
Financial Advisor
Connie Higgins
Operations Manager
Jeff Isaacson
Financial Advisor
Bryan Nill
Financial Advisor
ANNUAL REPORT | 2021
these initiatives on pages 10 and 11.
wealth management staff and expand digital banking
Our efforts continue to be recognized by our
and customer self-service options.
RESPONSIVE TO CUSTOMER NEEDS
Anticipating customer needs is essential in providing
community and industry. The Wausau Daily Herald’s
Tina Seidl also joined Peoples as vice president
an excellent experience. With that in mind, we
readers voted Peoples State Bank “Best Bank or
- human resources director during 2021. Tina brings
completed several projects in 2021, including a
Credit Union” and “Best Mortgage Company” in
over 15 years of experience in the financial services
remodeling project at our Marathon location. The
their 2021 Best of Marathon County Awards. We
and healthcare fields.
2,500 square foot project creates a better flow for
were also chosen among the “Best Banks to Work
Director Charles Ghidorzi retired from the
customers and employees and additional private
For” and one of the “Top 200 Community Banks”
PSB Holdings, Inc., and Peoples State Bank boards
office space for customer interactions.
by American Banker Magazine. You will find more
in 2021 after 24 years of service. We thank him
We implemented a new residential mortgage
information about these awards on page 6.
for his many years of contributions as he devotes
platform to provide customers with a better online
LEADERSHIP FOR THE FUTURE
We welcome Jeff Saxton as vice president of our retail
more time to leading various civic projects to
loan application and allow operating efficiencies
benefit the greater Wausau area.
behind the scenes. Our goal is to provide more
Peoples lost a longtime supporter and friend,
convenient ways for customers to interact with
group following the retirement of Maureen Jorgensen
Lawrence ‘Larry’ Hanz, Jr., who passed away in
Peoples throughout their mortgage experience
after nine years of her retail banking leadership. Jeff
2021. You can read more about Larry’s impact on
from start to finish.
will provide direction to Peoples’ retail, mortgage, and
Peoples on page 7.
Our commercial banking team is rolling out a
RETAIL LEADERSHIP CHANGE
Peoples State Bank promoted
bank’s mortgage team to managing
Jorgensen spent nearly
even those who might be upset
Jeffrey Saxton to vice president,
all retail banking efforts. “Jeff has
ten years at Peoples, leading
about something.”
retail group leader in 2021, after
a passion for expanding the bank’s
the retail team through many
Jorgensen leaves banking
SAXTON
the announcement by Maureen
digital banking platforms, making
changes. “Maureen never shied
on a high note, as she was
Jorgensen that she would retire
it easier for customers to access
away from a difficult customer
named one of BankBeat
from Peoples in December 2021.
their money, and perform routine
conversation,” said Cattanach.
magazine’s 2021 Outstanding
With the promotion, Saxton
banking services,” said Scott
“She is exceptional at reading
Women in Banking!
expanded his leadership duties,
Cattanach, Peoples State Bank
people and situations and finding
Congratulations, Maureen!
from his experience managing the
president, and CEO.
ways to engage with everyone—
JORGENSEN
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ANNUAL REPORT | 2021
new high-touch platform with additional products
and services appropriate for our largest customers
having strong business and personal relationships
with Peoples to address all their banking needs
in one place. It’s another way to offer convenient
and personalized services to consolidate banking
and wealth management assistance with flexibility,
convenience, and attractive pricing.
We are working to help all our neighbors access
the banking system, and we’ve added a low-fee
account designed to meet the needs of unbanked
or underbanked households. The account tools and
features allow customers to increase their financial
literacy with digital and debit card access to their
funds without the fear of high fees or overdrafts.
LOOKING AHEAD
Building upgrades are coming to two of our
locations, with more details on page 10. We’ve
remodeled the lobby of our Stewart Avenue
(Wausau) home office to allow for more of a personal
‘concierge’ banking experience with self-service
options. A remodel of our Waukesha branch will
double the number of private offices and modernize
the lobby. Both projects are designed to update
the customer experience with multiple channels for
service, both digital and personal.
Currently, low net interest margins within
the industry require us to explore ways to use
technology and process updates to increase operating
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efficiency and reduce expense to support a healthy
bottom line. Various teams throughout the bank are
working to reduce unnecessary paper handling and
repetitive tasks to serve customers better.
New products and services are on the horizon,
like online deposit account opening and expanded
text “conversations” within our mobile app for
customer questions or service needs. It is essential
for us to provide our customers with multiple
options for product purchase and support.
Continued asset, market, and product growth
is vital to driving shareholder value over the next
several years. We are committed to continued
growth on programs, products, and people we have
in place while seeking new or expanded markets
or lines of business to benefit our customers,
employees, and shareholders.
For shareholders in the coming year, we seek
to continue above-average returns on shareholder
equity that prioritize continued shareholder cash
dividends and maintain our stock buyback program
for shareholders holding our stock outside of a
brokerage account. Thank you for your ongoing
investment and support of Peoples as we celebrate
our 60-year anniversary during 2022. We hope to
see you often this year.
Scott M. Cattanach
President & Chief Executive Officer
PSB Holdings Inc. & Peoples State Bank
ANNUAL REPORT | 2021
Retiremens
Community banking is a
people business, and we
recognize some long-time
colleagues who retired in
2021. Thank you, and we
wish you all the best!
TINA LIS
Loan Servicing Specialist Sr.
25 years of service
CINDY SWENDRZYNSKI
Loan Operations Officer
24 years of service
DONNA STAPLES
SVR Human Resources
14 years of service
MAUREEN JORGENSEN
SVP Retail Sales & Service
9 years of service
Donna Staples, a long-time Peoples employee, retired
in mid-January 2021, serving as senior vice president
and human resources director at the bank for nearly
15 years. Staples stepped aside to spend more time
STAPLES
with her family. Tina Seidl was hired as vice president
and human resources director, bringing more than 15
years of HR experience to the bank in the healthcare
and financial fields. “Tina understands the challenges of
the hiring process, but additionally to support and grow
SEIDL
workforce culture, develop and implement corporate HR
policies, and to deliver training options for employee growth,” said Scott
Cattanach, Peoples State Bank president and CEO.
2021 EXECUTIVE
MANAGEMENT
Scott Cattanach
President
Maureen Jorgensen
Senior Vice President
Chief Executive Officer
Retail Sales & Service
Tim Dively
Vice President
Chief Technology &
Operating Officer
Pat Heier
Senior Vice President
Commercial Banking
Robert McPherson
Vice President
Risk Management
Jeffrey Saxton
Vice President
Retail Sales & Service
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Back row – Jeffrey Saxton, Ma
–
Front row – Scott Cattanach, Robert McPherson
ureen Jorgensen, Tim Dively, Pat Heier
ANNUAL REPORT | 2021
SATISFIED CUSTOMERS
Sam and Amanda McLellan’s first experience with Peoples State Bank was a
mortgage loan they received through the now retired Dan Mortenson. “There were
things ‘Morty’ and Peoples helped with that other banks we approached weren’t
interested in,” said Sam. Sam and Amanda didn’t have a lengthy self-employment
history as new independent home builders. But they
were hard-working and
dedicated to building high-quality homes.
What they found in Peoples was customer service
what custom is all about, and it’s the same thing we
they could relate to. Their new company, Woodbury
saw in our relationship with Peoples.”
Custom Homes, was formed to provide custom-built
houses for their customers. “We love our clients who
Shortly after applying for a mortgage, Sam and Amanda
come to us with a portfolio of ideas they like, said
worked with Meredith Otte of Peoples commercial
Amanda. “We take pride in helping them build their
banking team to build a business relationship. “From
dream home, with specific ideas they wanted. That’s
a professional and financial standpoint, Meredith
provides feedback which we appreciate,” said Sam.
“She’s been able to help us make smart choices to grow
our business in a healthy fashion.”
A few years—and a few houses—built and sold later, and the
McLellan’s have become brand ambassadors for Peoples.
“Peoples has enough in-house products that provide
us as business owners all we need,” said Amanda. “And
we’ve gotten to the point where we never hesitate to tell
our customers about Peoples. You’re going to get a good
experience. And if any bank is going to help you figure out
Sam and Amanda McLellan during a video production for Peoples State Bank.
what you need, it’s them.”
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Top 200 Community Bank
American Banker magazine ranked
PSB Holdings, Inc. as a Top 200
Community Bank for 12 straight
years. In 2021, we’re ranked as the
68th top-performing community
bank in the nation.
Best Banks to Work For
American Banker magazine
named Peoples one of the Best
Banks to Work For in 2021. It’s
the third year in a row Peoples
has been honored.
Best of Marathon County
Wausau Daily Herald readers
rated Peoples as the “Best
Bank” and the “Best Mortgage
Company” in 2021. The honor
marks the 10th year in a row
Peoples has been named the
best bank and the third year
in a row as the best mortgage
company. Peoples Wealth
Management was also recognized
as a top-two finalist in the “Best
Financial Planning” category.
ANNUAL REPORT | 2021
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FRONT ROW – KEVIN KRAFT, PETER KNITT, COREY VANDERPOEL, KARLA KIEFFER
BACK ROW – PATRICIA HANZ, WILLIAM FISH, SCOTT CATTANACH, BOB EASTMAN, LEE GUENTHER
William J. Fish
Chairman of PSB Holdings, Inc.
& Peoples State Bank
Retired President
BILCO, Inc.
Scott M. Cattanach
President & CEO
PSB Holdings, Inc. & Peoples
State Bank
Kevin J. Kraft
Managing Director
Wisconsin River Partners, LLC
Lee A. Guenther
Retired CEO
T.A. Solberg Co., Inc.
Karla M. Kieffer
Co-owner & VP Sales
SUN Printing
Peter W. Knitt
Retired President & CEO
PSB Holdings, Inc. & Peoples
State Bank
Corey B. Vanderpoel
Managing Director & Owner
Taureau Group, LLC
Patricia M. Hanz
Retired
Briggs & Stratton
U.S. Consumer Product
Safety Commission
Robert F. Eastman, Jr.
Retired CEO
Sunset Bank & Savings
IN MEMORIAM
LAWRENCE ‘LARRY’
HANZ
1924 – 2021
Larry was among a group
of westside Wausau
businessmen who founded
Peoples State Bank
in 1962. A long-time
supporter of the bank,
Larry also served on the
board of directors from
1981 to 2002.
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ANNUAL REPORT | 2021
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Peoples opened a full-service bank location
in 2020 in West Allis. In 2021, the bank
purchased Sunset Bank & Savings of
Waukesha, expanding our presence and
creatig oportuniies.
In 2015, the PSB Holdings, Inc. board of directors moved forward with a
strategic plan culminating in growth opportunities for the bank in southeastern
Wisconsin. “For many years, we’ve had the great privilege in northern and
central Wisconsin to have the number one community bank deposit market
share in our three home counties,” said Scott Cattanach, Peoples State Bank
president and CEO. “Our Marathon, Oneida, and Vilas counties are strong
performers but we needed to look to other faster-growing Wisconsin counties.
So, in 2015 we looked at where we could find growth opportunities.”
Looking back now, the move into southeastern Wisconsin has been an
impressive part of the bank’s growth. Today, Southeast Wisconsin’s $240 million
in assets represents about 20% of Peoples’ total assets of $1.3 billion.
Peoples opened a loan production office in Wauwatosa in 2016, quickly adding
staff as more commercial customers brought their financial needs to the bank.
“I look at it and have to pinch myself. Five years ago, it was just me and Jose
Pimienta, Jr., and a few customers. Now we have 30 employees between two
full-service bank locations,” said Jeff Musa, Peoples State Bank southeastern
Wisconsin market president. “We’ve focused on being able to do what’s right
for our customers from day one, building true relationships with them.”
ANNUAL REPORT | 2021
“It’s all about
building good
relationships —
with our
customers— and
our employees.”
– Chadd Frank,
Peoples State Bank
Waukesha Market President
Peoples opened a full-service bank location in 2020 in West Allis.
In 2021, the bank purchased Sunset Bank & Savings of Waukesha,
expanding our presence and creating opportunities.
“It’s all about building good relationships—with our customers—
and our employees,” said Chadd Frank, Peoples State Bank
Waukesha market president. “It doesn’t matter if it’s a commercial
customer or a retail customer. We want to create an atmosphere
where customers know we’re here for them.”
“West Allis and Waukesha are branch locations of Peoples State
Bank,” said Cattanach. “What that means is that you’ll have the
same great experience at the Waukesha or West Allis locations
as you do in our Stewart Avenue, Rhinelander, or Minocqua
locations where we have been ranked the best local bank for
ten years in a row.”
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ANNUAL REPORT | 2021
REDESIGNED Spacs
Keeping in mind our customers and employees, Peoples has
renovated several bank locations to improve traffic flow for
our customers and workflow for our employees.
SUPPORTING
OUR
COMMUNITY
MARATHON CITY
WAUSAU
WAUKESHA
Our Marathon bank saw
extensive renovation work
in 2021, including creating
more offices to allow privacy
with customers and improved
workflow for our employees.
At Stewart Avenue, we created
a “concierge” service model
for our customers, with a
remodeled lobby including high-
top tables, self-service tablets,
and a retail banker greeting
customers and assisting them in
non-cash transactions.
Our renovation work will
double our office space in
Waukesha and provide
the newest technology for
a great customer and
employee experience.
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MC UNITED SOCCER CLUB
JERSEY SPONSORSHIP
“With a four-year
agreement in place, we
know our parents and
athletes will take notice
of Peoples’ commitment
to the club,” said Sharon
Belton, former MC
United president.
ANNUAL REPORT | 2021
PEOPLES SPORTS COMPLEX
Peoples State Bank and Marathon County announced the agreement for
Peoples State Bank to become the naming rights sponsor of the Peoples
Sports Complex. “We re excited for this new partnership with People
’
State Bank,” said Jamie Polley, Marathon County Parks, Recreation &
Forestry Director.
WAUKESHA TRAGEDY
Peoples donated $15,000 United for
Waukesha Community Fund hosted
by the Waukesha County Community
Foundation and United Way of Greater
Milwaukee & Waukesha County.
HELPING OTHERS
Peoples employee Marlie Gordon
and her husband Lorn gathered
items donated by our employees
to send to Kentucky
tornado victims.
HODAG PARK
Peoples donated $15,000 to Rhinelander s Hodag
’
Park improvement project. “When completed,
these improvements will draw thousands of
people to Hodag Park,” said Craig Lau, Peoples
State Bank northern market president.
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ANNUAL REPORT | 2021
SUMMARY STATEMENTS OF INCOME
Years ended December 31 (dollars in thousands, except per share data)
Net interest income
$38,601
$31,879
$31,283
$28,828
$27,176
Provision for loan losses
1,000
5,575
850
130
385
2021
2020
2019
2018
2017
Net interest income after loan loss provision
Noninterest income
Operating expenses
Net income before income taxes
Provision for income taxes
37,601
9,418
30,110
16,909
4,092
26,304
11,413
23,744
13,973
3,284
30,433
7,661
23,296
14,798
3,551
28,698
6,476
21,713
13,461
3,149
26,791
6,107
20,346
12,552
5,365
NET INCOME
$12,817
$10,689
$11,247
$10,312
$7,187
Diluted earnings per share
Cash dividends per share
$2.88
$0.46
$2.40
$0.42
$2.51
$0.40
$2.29
$0.36
$1.58
$0.32
Average common shares outstanding
4,454,836
4,455,670
4,481,251
4,496,525
4,558,569
Return on average assets
Return on average equity
1.03%
11.63%
1.01%
10.83%
1.22%
12.77%
1.19%
13.41%
0.87%
9.82%
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ANNUAL REPORT | 2021
SUMMARY BALANCE SHEETS
Years ended December 31 (dollars in thousands, except per share data)
ASSETS
Cash and cash equivalents
Securities
Loans receivable, net
Premises and equipment, net
Other assets
2021
$53,543
310,690
876,337
12,695
45,446
2020
$38,528
229,527
820,956
10,920
32,024
2019
$49,028
179,431
707,651
10,457
28,326
2018
$43,978
175,108
658,481
10,209
28,222
2017
$28,107
173,812
610,076
10,453
25,233
TOTAL ASSETS
$1,298,711
$1,131,955
$974,893
$915,998
$847,681
LIABILITIES
Total deposits
Federal Home Loan Bank advances
Other borrowings
Senior subordinated notes
Junior subordinated debentures
Other liabilities
Stockholders’ equity
TOTAL LIABILITIES &
STOCKHOLDERS EQUITY
2021
2020
2019
2018
2017
$1,105,240
$932,137
$781,790
$725,826
$702,303
47,000
6,677
2,500
12,717
13,315
111,262
62,000
12,239
2,500
7,732
10,920
104,427
73,496
81,071
49,448
6,131
2,500
7,732
10,553
92,691
8,379
2,500
7,732
9,650
2,636
2,500
7,732
9,280
80,840
73,782
$1,298,711
$1,131,955
$974,893
$915,998
$847,681
Tangible net book value per share
$24.36
$23.43
$20.72
$17.98
$16.28
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ANNUAL REPORT | 2021
GROWING FOR
the future
P S B Q
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P S B H O L D I N G S I N C . C O M