PSB Holdings, Inc. announced a financing transaction
November 31, 2022
Share
PSB Holdings, Inc. announced a private placement of non-cumulative perpetual preferred stock for gross proceeds of $7,200,000 and subordinated debt for gross proceeds of $10,000,000; for aggregate gross proceeds of $17,200,000 on November 1, 2022. The transaction will include participation from local community members for subordinated debt. The perpetual preferred stock will pay a non-cumulative quarterly fixed dividend at an annual rate of 6.75% for the first five years and then floating at 90-day Secured Overnight Financing Rate plus 4.50% thereafter. The company retains the option to redeem the preferred stock in whole or in part beginning November 1, 2027. The notes will pay quarterly interest at an annual rate of 4.75% for the first five years and then floating at 90-day SOFR plus 2.00% thereafter. The subordinated debt will pay interest-only for the first five years and have an issuer option to redeem in whole or in part beginning November 1, 2027. The minimum investment accepted is $250,000.
On the same day the company received $4.8 million as subordinated debt and $7.2 million for preferred stock. The company raised preferred stock from 6 investors and subordinated debt from 8 investors pursuant to exemption provided under regulation D.
PSB Holdings, Inc. is a holding company for Peoples State Bank (Peoples). Peoples is a community bank, which serves north central and southeastern Wisconsin with 10 full-service banking locations in Marathon, Oneida, Vilas, Milwaukee and Waukesha counties and a loan production office in Stevens Point, Wisconsin. Peoples also provides investment and insurance products, along with retirement planning services, through Peoples Wealth Management, a division of Peoples. Its commercial and industrial loans, municipal loans and agricultural loans are primarily for working capital, physical asset expansion and asset acquisition loans. Its commercial real estate loans are primarily secured by owner and non-owner-occupied office and industrial buildings, warehouses, small retail shopping facilities and various special purpose properties, including hotels and restaurants. Its construction and land development loans are secured by vacant land and/or property that is in the process of improvement.