Deposit retention risk
The bank relies on customer deposits to fund loans and withdrawals; runoff can require more expensive funding.
- Scope
- Non-maturity deposits and maturing time deposits
- Materiality
- high
PSB Financial, Inc.
PSB Financial, Inc. is a U.S.-based savings institution that gathers deposits and uses those funds to make loans and hold investment securities. Its business is centered on traditional community banking activities, including deposit accounts, residential and commercial lending, and liquidity management through borrowings such as Federal Home Loan Bank advances.
| % | |
|---|---|
| Deposits | 35% Core funding products including savings, transaction, IRA, and time deposit accounts. |
| Residential lending | 30% Mortgage and home equity loans to households and owner-occupiers. |
| Commercial lending | 20% Business loans, commercial lines of credit, and related credit facilities. |
| Construction lending | 10% Loans and commitments tied to property construction and development. |
| Investments and funding | 5% Securities portfolio income and wholesale funding through FHLB advances. |
PSB Financial serves local depositors and borrowers that use a community bank for everyday banking, savings, and credit...
- Retail deposit customersprimary
Individuals and households that place savings and time deposits with the bank for convenience and safety.
- Residential borrowersprimary
Consumers using mortgage and home equity products for home purchase, refinance, or liquidity.
- Commercial borrowersprimary
Local businesses that borrow through term loans and revolving credit for working capital and expansion.
- Construction and development borrowerssecondary
Customers drawing on construction loans and committed facilities as projects progress.
- Business depositorssecondary
Operating businesses that maintain balances and transact through deposit accounts.
PSB Financial operates in the United States and its business is shaped by local deposit gathering and lending...
- •United States-based savings institution
- •Local banking footprint tied to community deposit and loan markets
- •Deer Lodge referenced as a facility location
- •Regional economic conditions affect loan demand and credit quality
- •Local competition influences deposit retention and pricing
The company’s strategy is centered on maintaining stable funding, retaining deposits, and supporting loan growth...
01
Deposit retention and funding mix managementshort-term
Stable deposits are the main funding source for loans and securities.
02
Liquidity backstop and balance-sheet flexibilityshort-term
Access to FHLB advances helps meet withdrawals and fund lending.
03
Local loan growth and customer relationship bankingmedium-term
Loan growth supports earning assets and deepens customer relationships.
PSB Financial is exposed to classic community-bank risks: deposit runoff, interest-rate sensitivity, and borrower...
Interest-rate risk
Deposit costs, loan prepayments, and securities values are sensitive to rate changes.
- Scope
- Loan portfolio, time deposits, investment securities
- Materiality
- high
Credit risk in local lending
Loan performance depends on borrower repayment capacity and collateral values.
- Scope
- Commercial, residential, and construction loans
- Materiality
- high
Liquidity contingency risk
Unexpected deposit withdrawals or loan funding needs may require FHLB advances or asset sales.
- Scope
- FHLB borrowing capacity and liquid securities
- Materiality
- medium
Operational and cyber risk
Banking operations depend on secure systems and third-party service providers.
- Scope
- Customer data, payment processing, internal controls
- Materiality
- medium
Allowance for credit losses
Loan loss reserve and earnings
Fair value of investment securities
Accumulated other comprehensive income and capital
Deposit and loan prepayment timing
Net interest income comparability
Off-balance-sheet commitments
Future liquidity and credit exposure
: 18.7.2026