Year in Review



To our Shareholders, Customers and Friends,


We are happy to present this financial report for the year ending December 31, 2016 and to share other information with you as we begin 2017.


In many respects, 2016 was similar to 2015 in that we began the year expecting interest rates to increase but there was no increase until December. With the national and local economy continuing to improve, we would expect rates to increase more often in 2017. With the increase, the bank should be able to increase our net interest margin and the overall profitability of the bank. Also, our deposit customers should have a higher return which they have not seen since 2008.


We are extremely pleased to expand our presence in Grant County with the purchase of four FirstMerit branches! With the addition of the four offices, Peoples State Bank has a total of 19 locations in Southwest Wisconsin and Northeast Iowa. The Bank also purchased the closed FirstMerit Building in Prairie du Chien. We plan on remodeling the building and moving our deposit operations and loan operations departments into that building by this summer.

This past year, we lost Director Doug Wolf when he passed away unexpectedly in July. Doug had a great knowledge of the Agriculture area and was extremely fair and open minded when reviewing customer requests. Doug will be missed by the bank and myself as we all valued his advice and experience.

I would like to thank the Board of Directors for their knowledge and guidance in the past and in the future. I would also like to thank the employees of the bank for their excellent service to the customers of the bank. The compliments that I continue to receive about our employees from customers, and people in the communities we serve, are a testament to the outstanding job that Peoples State Bank does. We look forward to, and are excited about, the coming year.





Mark W. Forsythe, President


Profitability (↑80k)

ROA: 1.47

ROE: 14%

Total Assets of the bank stood at $736 million at year end 2016 compared to $647 at the end of 2015. Approximately $60 million of the increase came from the acquisition of the four branches from FirstMerit. Total loans grew by approximately $40 million, of which, $6 million were related to the acquisition.

Asset Graph. 2014: $639,816,000. 2015: $647,207,000. 2016: $736,211,000.

Often, banks are measured and described in terms of asset size.  These designated peer groups allow banks to better compare themselves with those receiving the same regulatory treatment - among other commonalities.  With total assets of $736 million, Peoples State Bank is #20 out of 198 insured commercial banks in Wisconsin by asset size (Q3 2016).  This generally earns us a spot in the $500 million to $1 billion peer group - one that we’re happy to be a part of given it represents a large contingency of great community banks still serving their local areas.
Capital Graph: 2014: $64,279,000. 2015: $68,473,000. 2016: $70,946,000.
Total bank capital has grown over $6 million since the end of 2014.  Capital is largely a function of earnings, but also driven by distributions as well as mark-to-market in our securities portfolio.  In banking, equity capital is often viewed as one of the most critical components to success and soundness.  Peoples State Bank ended the year with a total capital ratio of 13.99%.  This places the bank in the “Well Capitalized” category of the most recent PCA supervisory standards – the highest such category.

Loans (net) Graph. 2014: $403,417,000. 2015: $423,581,000. 2016: $469,039,000.

Loans increased +10% year-over-year in 2016; the year ended with $469 million in total loans net of allowance for losses. The loan portfolio consists of all types of loans: agricultural, commercial, and residential.  Growth in lending can be attributed to serving a larger geographic area in southwest Wisconsin and northeast Iowa, but also a potential sign that economic activity is improving. In 2016, Peoples State Bank was listed #15 among the “Top 25 Agriculture Loan Producers” (community banks with $500 million to $1 billion in assets) as ranked by the Independent Banker (More info).
This listing was based on 2015 Call Report data, so the Bank hopes to make the list again this coming year. Though agriculture lending remains strong at Peoples State Bank, commercial lending has made gains as well.  When including commercial real estate, our total commercial loan portfolio accounts for over 35% of total loans.  Overall, we’re optimistic that strength in the commercial portfolio reflects increasing optimism in our communities.

The bank continues to invest in training for the staff to continue to increase quality service to the bank's customers. This training also helps keep the bank ahead of the continuous implementation of new regulations by the regulatory agencies.





We have grown from 117 Full Time Equivalent Employees in 2015, to 138 in 2016. The bank also continues to invest in new technology to constantly improve customer service.

Apple Pay

Use your Peoples State Bank card with your iPhone mobile wallet.

Online Banking/Website

Updated look and feel to provide smoother experience.

We're looking forward to another successful year!

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