PUTNAM — PSB Holdings Inc. announced the Office of the Comptroller of the Currency, the primary regulator of its wholly owned subsidiary, Putnam Bank, has terminated the Formal Agreement entered into with the Bank on June 20, 2012. In terminating the agreement, the OCC noted that the ongoing safe and sound operation of the bank did not require the continued existence of the agreement. It reflects the significant progress the bank has made in addressing the objectives set forth in the agreement.

Thomas A. Borner, president and CEO, said, “We are very pleased that the OCC has lifted the agreement. We fully recognize the challenges to the banking industry since 2008 and the effect the conduct of the big banks has had on the community banks. We believe this step in lifting the agreement is reflective of the significant efforts made by our organization over the last 18 months to strengthen the bank. Equally important is that we expect the removal of the order will bolster our profitability in the future through reduced regulatory related expenses. It will enhance our ability to continue our growth strategy and to serve our communities in a safe and sound manner.”

He added, “The significant commitment of time and resources on behalf of the Board of Directors and staff has resulted in this prompt exit from the agreement. We believe that as a result we are financially stronger with systems and processes that will aid us as we continue to provide quality services to our customers.”

PSB Holding Inc. is the majority-owned subsidiary of Putnam Bancorp, MHC, a federal mutual holding company that owns 57.0 percent of the company’s outstanding shares.  The company is the parent company of the bank, which was founded in Putnam in 1862. The Bank offers a wide range of financial services through its eight branches from Putnam to Gales Ferry with a seven-day a week supermarket branch and full service loan offices. The Bank has total assets of $453 million. The stock of the Company is traded though NASDAQ under the symbol PSBH.

 

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