PSB Financial Reports Net Loss of $148,413 for Q2 2026 Amid One-Time Expenses

PSB Financial, Inc. reported a net loss of $148,413 for the three months ended June 30, 2026, a significant decline from a net income of $36,686 during the same period in 2025. For the six months ending June 30, 2026, the company experienced a net loss of $1,410,551, compared to a net income of $125,786 in the prior year. The decrease in profitability was primarily attributed to a one-time expense of $2 million related to the conversion of its core data processing platform, along with increased professional fees associated with the stock offering and conversion process.

Total interest income for the second quarter of 2026 increased by 12.5% to $1,490,896, driven mainly by a $134,000 rise in loan interest income. The average yield on loans rose to 5.65%, up from 5.44% a year earlier. However, total interest expense also increased by 32.2% to $559,570, largely due to a higher average balance of certificates of deposit. As a result, net interest income for the quarter was $931,326, reflecting a modest increase from $902,253 in the previous year.

In terms of operational metrics, PSB Financial's total assets grew by 11% to $133.2 million as of June 30, 2026, compared to $120 million at the end of 2025. This increase was primarily driven by a rise in cash and cash equivalents, which reached $21.8 million, up from $9.2 million. The company also reported a 2.7% increase in gross loans, totaling $93.8 million, with notable growth in residential one- to four-family mortgage loans. Deposits increased by 2.2% to $94.7 million, with a shift from non-maturity deposits to time deposits.

Strategically, PSB Financial completed a conversion from a mutual to a stock organization in May 2026, which included the issuance of 1,719,250 shares of common stock, generating gross proceeds of $17.2 million. The company established an Employee Stock Ownership Plan (ESOP) as part of this conversion, which purchased 137,540 shares. The total shareholders' equity increased significantly by 58.3% to $29.2 million, reflecting the successful capital raise despite the operational losses.

Looking ahead, PSB Financial aims to leverage its increased capital base to support growth initiatives and enhance its market position. The company is focused on managing interest rate risk and maintaining liquidity, with plans to continue diversifying its loan portfolio. However, management acknowledges potential challenges, including economic conditions and competition, which could impact future performance.