PSB Holdings, Inc. (PSBQ) Stock Analysis

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• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

PSB Holdings, Inc. (PSBQ) Financial Services Profile

PSB Holdings, Inc. functions as a regional bank holding company, providing diverse consumer and commercial banking services across five Wisconsin counties. Established in 1962, it maintains a local market focus, offering traditional banking alongside specialized lending and digital solutions, characterized by a $208M market capitalization and a 1.76% dividend yield.

What Is the Investment Thesis for PSBQ?

PSB Holdings, Inc. presents as a regional banking entity with a stable operational foundation, evidenced by its $208M market capitalization and a P/E ratio of 13.16. The company demonstrates robust profitability metrics, including a profit margin of 17.2% and a gross margin of 60.6%, suggesting efficient management of its banking operations and cost of funds. Its low beta of 0.20 indicates significantly lower volatility compared to the broader market, potentially appealing to investors seeking stability. A consistent dividend yield of 1.76% provides a source of income. Key value drivers include its established presence across five Wisconsin counties, fostering strong local customer relationships, and a diversified product offering spanning consumer and commercial banking, specialized lending, and digital services. Growth catalysts are anticipated through continued penetration in its existing Wisconsin markets, potential expansion of its digital banking capabilities to meet evolving customer demands, and the strategic enhancement of specialized lending programs such as SBA and healthcare financing. However, investors must consider the inherent risks associated with its OTC Other listing, including potentially lower liquidity and less stringent disclosure requirements, alongside broader industry challenges such as interest rate sensitivity and competitive pressures.

Based on FMP financials and quantitative analysis

PSBQ Key Highlights

Market Capitalization: PSB Holdings, Inc. commands a market capitalization of $208M, reflecting its scale as a regional banking institution focused on specific Wisconsin markets.

• Profitability Metrics: The company exhibits a strong profit margin of 17.2% and a gross margin of 60.6%, indicating efficient operational management and effective revenue generation from its banking services.
• Valuation and Stability: With a P/E ratio of 13.16 and a low beta of 0.20, the stock suggests a valuation relative to earnings that is within typical banking sector ranges and demonstrates significantly lower price volatility compared to the overall market.
• Shareholder Returns: PSB Holdings, Inc. offers a dividend yield of 1.76%, providing a consistent income stream to its shareholders, which is characteristic of many established financial institutions.
• Geographic Presence: As of January 28, 2022, the company operates ten full-service banking locations and one loan production office across Marathon, Oneida, Vilas, Milwaukee, and Waukesha counties in Wisconsin, highlighting its concentrated regional market strategy.

Who Are PSBQ's Competitors?

PSBQ is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are PSBQ's Key Strengths?

Established local market presence with ten full-service branches across five Wisconsin counties, fostering strong community ties.

• Diverse product portfolio covering a wide range of consumer and commercial banking, lending, and financial services.
• Strong profitability metrics, including a 17.2% profit margin and 60.6% gross margin, indicating operational efficiency.
• Low beta of 0.20 suggests lower stock price volatility compared to the broader market.
• Offers a dividend yield of 1.76%, providing income to shareholders.

What Are PSBQ's Weaknesses?

Smaller market capitalization ($0.19B) compared to larger regional and national banks, potentially limiting access to capital.

• OTC Other listing implies less stringent reporting requirements and potentially lower liquidity, which can deter some institutional investors.
• Limited geographic reach, concentrating risks within specific Wisconsin economic conditions.
• Disclosure status is 'Unknown' for its OTC tier, which can create uncertainty for investors.
• Potential for higher regulatory scrutiny associated with OTC-listed companies, as highlighted by existing AI insights.

What Could Drive PSBQ Stock Higher?

PSBQ catalyst: Continued economic stability and growth within its core Wisconsin operating counties, supporting loan demand and deposit growth.

• Potential enhancement and expansion of digital banking platforms, attracting new customers and improving service efficiency.
• Successful implementation or expansion of specialized lending programs, such as SBA or healthcare financing, driving targeted loan portfolio growth.
• Strategic initiatives to deepen market penetration within existing Wisconsin counties, potentially through new loan production offices or targeted community engagement.

What Are the Key Risks for PSBQ?

Financial-distress signal — its Altman Z-Score of 0.35 sits in the distress zone (elevated bankruptcy risk).

• Sensitivity to interest rate fluctuations, which can impact the bank's net interest margin and overall profitability.
• Intense competition from larger regional and national banks, as well as agile financial technology (fintech) companies, for deposits and lending opportunities.
• Economic downturns or localized recessions within its primary Wisconsin markets, leading to increased loan defaults and reduced demand for banking services.
• Regulatory changes and compliance costs, particularly given its OTC Other listing, which could impose additional operational burdens.
• Challenges in attracting and retaining talent in a competitive labor market, impacting operational effectiveness and customer service quality.

What Are the Growth Opportunities for PSBQ?

• Expansion of Digital Banking Services: The financial services industry is undergoing a rapid digital transformation, with customers increasingly demanding convenient and robust online and mobile banking solutions. PSB Holdings, Inc. has an opportunity to significantly enhance its digital platforms, introducing advanced features such as AI-driven financial insights, personalized budgeting tools, and seamless digital loan applications. This expansion could attract a younger, tech-savvy demographic and improve customer retention by offering superior convenience, potentially broadening its effective reach beyond physical branch locations within its existing Wisconsin counties and optimizing operational efficiency.
• Specialized Lending Programs: PSB Holdings, Inc. currently offers Small Business Administration (SBA) loans and healthcare specialty lending. There is a substantial growth opportunity in further developing and expanding these specialized lending programs, potentially targeting other niche industries within its Wisconsin service areas, such as agriculture, manufacturing, or specific professional services. By building deep expertise in these sectors, the bank can offer more tailored financial products and advisory services, attracting businesses that may feel underserved by larger, more generalized lenders. This strategy can lead to higher-quality loan portfolios and stronger, more resilient client relationships.
• Geographic Market Penetration: As of January 28, 2022, PSB Holdings, Inc. operates across five specific counties in Wisconsin. A key growth driver involves deepening its market penetration within these existing counties. This can be achieved through targeted marketing campaigns that highlight its community focus, increased local sponsorships and engagement, and potentially the strategic placement of additional loan production offices or smaller, digitally-focused branches in high-growth areas within these counties. By strengthening its presence and brand recognition locally, the company can capture a larger share of both deposit accounts and lending opportunities from individuals and businesses already familiar with its services.
• Wealth Management and Investment Products: The company already offers investment and insurance products, indicating a foundation for wealth management services. Expanding its private banking and comprehensive wealth management offerings to cater to high-net-worth individuals, families, and small business owners could represent a significant growth opportunity. This segment typically generates stable, fee-based income, diversifying the bank's revenue streams beyond traditional interest income. By providing holistic financial planning, investment advisory, and estate planning services, PSB Holdings, Inc. can deepen client relationships and increase the lifetime value of its customer base.
• Commercial Treasury Management Services: PSB Holdings, Inc. provides a suite of commercial treasury management services, including sweeps, zero balance accounts, online bill pay, fraud protection, and Automated Clearing House (ACH) services. There is an opportunity to aggressively market and enhance these services to local businesses, particularly small to medium-sized enterprises (SMEs) that require efficient cash flow management. By offering advanced, integrated treasury solutions, the bank can attract and retain commercial clients, securing valuable business deposits and generating additional fee income. This strengthens its commercial banking portfolio and positions it as a vital partner for local economic activity.

What Are PSBQ's Competitive Advantages?

• Strong local market presence and community relationships built over decades in specific Wisconsin counties.
• Diversified product and service offering catering comprehensively to both consumer and commercial needs, reducing reliance on a single revenue stream.
• Established physical branch network combined with digital banking capabilities, offering a hybrid approach to customer service.
• Expertise in specialized lending areas like SBA and healthcare financing, creating niche market advantages.
• Reputation and trust as a long-standing community bank, fostering customer loyalty and retention.

What Does PSBQ Do?

PSB Holdings, Inc. operates as the holding company for Peoples State Bank, a financial institution with a deep-rooted history dating back to its founding in 1962. Headquartered in Wausau, Wisconsin, the company has evolved to provide a comprehensive array of retail consumer and commercial banking products and services tailored to individuals and businesses within its operational footprint. Its offerings span essential banking services, including checking, savings, individual retirement accounts, and money market accounts, alongside various certificates of deposit and certificate of deposit account registry services. Beyond traditional deposit products, PSB Holdings, Inc. facilitates modern financial transactions through debit, prepaid, and credit cards. The lending portfolio is extensive, encompassing fixed and adjustable rate mortgages, guaranteed rural housing loans, Veterans Administration loans, Federal Housing Administration loans, construction loans, land loans, auto loans, personal loans, and student loans. For homeowners, it provides home equity lines of credit and loans. Commercial clients benefit from business lines of credit, equipment financing, specialized healthcare lending, Small Business Administration (SBA) loans, business real estate financing, and services for business acquisitions and buy-outs. The company also offers sophisticated cash management services, private banking, e-statements, investment and insurance products, commercial treasury management services, sweeps and zero balance accounts, online bill pay, fraud protection, automated clearing house services, on-site deposit, and merchant services, complemented by robust online and mobile banking platforms. As of January 28, 2022, PSB Holdings, Inc. maintained a physical presence with ten full-service banking locations strategically situated in Marathon, Oneida, Vilas, Milwaukee, and Waukesha counties in Wisconsin, further supported by a loan production office in Stevens Point, Wisconsin, underscoring its commitment to regional community banking.

What Products and Services Does PSBQ Offer?

• Operates as a bank holding company for Peoples State Bank.
• Provides retail consumer banking products including checking, savings, IRAs, money market accounts, and certificates of deposit.
• Offers a variety of lending services such as fixed/adjustable rate mortgages, auto, personal, student, and home equity loans.
• Delivers commercial banking services including business lines of credit, equipment financing, SBA loans, and business real estate financing.
• Provides specialized lending for guaranteed rural housing, veterans administration, federal housing administration, construction, land, and healthcare.
• Offers digital banking solutions including online and mobile banking, e-statements, online bill pay, and fraud protection.
• Manages investment and insurance products, private banking, and commercial treasury management services.
• Operates ten full-service banking locations and one loan production office across five Wisconsin counties.

How Does PSBQ Make Money?

• Generates interest income primarily from loans (mortgages, commercial, consumer) and investments.
• Earns non-interest income through various fees for services such as debit/credit cards, treasury management, and investment/insurance products.
• Attracts deposits from individuals and businesses, which are then used to fund lending activities and investments.
• Provides specialized financial solutions like SBA loans and healthcare specialty lending, often with specific fee structures or government guarantees.

What Industry Does PSBQ Operate In?

PSB Holdings, Inc. operates within the highly competitive Banks - Regional industry, characterized by a landscape of both large national banks and numerous smaller community-focused institutions. The industry is currently influenced by several key trends, including the increasing demand for sophisticated digital banking solutions, evolving regulatory frameworks, and significant sensitivity to interest rate fluctuations that directly impact net interest margins. Regional banks like PSB Holdings, Inc. differentiate themselves by leveraging strong local relationships, community engagement, and tailored services that larger, more impersonal institutions may not provide. While the broader financial services sector experiences consolidation, there remain opportunities for well-managed regional players to capture market share by serving specific community needs and local business segments. PSBQ's focus on specific Wisconsin counties positions it to capitalize on regional economic stability and foster deep customer loyalty, acting as a key competitive advantage against broader market competitors.

Who Are PSBQ's Key Customers?

• Individual consumers seeking personal banking, lending, and investment services.
• Small to medium-sized businesses requiring commercial loans, lines of credit, and cash management solutions.
• Homeowners seeking mortgage and home equity financing.
• Healthcare providers and other specialized industries requiring tailored financing.
• High-net-worth individuals utilizing private banking and wealth management services.

PSB Holdings, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.35 places it in the distress zone, a signal of elevated financial risk.

Return on equity for PSB Holdings, Inc. stands at 11.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. PSBQ trades at a trailing price-to-earnings ratio of 13.50, below the Financial Services sector average of ~18x. Its free cash flow yield is 6.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 8.05 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 7.4%, the inverse of the P/E and a quick read on earnings relative to price.

PSB Holdings, Inc. (PSBQ) Valuation Context

Valued at $208M, PSBQ is classified as a micro-cap stock. Relative to its peer group, PSBQ's quantitative score of 53/100 is below the peer average of 92/100.

PSBQ Revenue & Earnings Trend

In Q2 2026, PSBQ generated $21.9M in top-line revenue, marking a sequential increase of 0.4%. The company recorded net income of $3.4M, with diluted EPS of $0.81. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this micro-cap Financial Services company. Across the four most recent quarters, PSBQ averaged $0.86 in diluted EPS.

Company Profile

PSB Holdings, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Wausau, US. The company is led by CEO Scott Cattanach. PSBQ has traded publicly since 2000.

PSBQ Financials

PSBQ Latest News

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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