FORM 10-Q

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

    (Mark One)
      [X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended March 31, 2004

                                      OR

      [   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

            For the transition period from __________ to __________


                       Commission file number:  0-26480

                              PSB HOLDINGS, INC.
              (Exact name of registrant as specified in charter)

               WISCONSIN                           39-1804877
        (State of incorporation)   (I.R.S. Employer Identification Number)

                           1905 West Stewart Avenue
                            Wausau, Wisconsin 54401
                    (Address of principal executive office)

       Registrant's telephone number, including area code: 715-842-2191

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such report), and (2) has been subject to such
filing requirements for the past 90 days.

                              Yes   X     No ___

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).
                             Yes ___     No   X

     The number of common shares outstanding at May 4, 2004 was 1,733,630.
<PAGE>
                              PSB HOLDINGS, INC.

                                   FORM 10-Q

                         Quarter Ended March 31, 2004


                                                                       Page No.
PART I.     FINANCIAL INFORMATION

      Item 1.  Financial Statements

               Consolidated Balance Sheets
               March 31, 2004 (unaudited) and December 31,
               2003 (derived from audited financial statements)             1

               Consolidated Statements of Income
               Three Months Ended March 31, 2004 and 2003 (unaudited)       2

               Consolidated Statement of Changes in Stockholders' Equity
               Three Months Ended March 31, 2004 (unaudited)                3

               Consolidated Statements of Cash Flows
               Three Months Ended March 31, 2004 and 2003 (unaudited)       4

               Notes to Consolidated Financial Statements                   6

      Item 2.  Management's Discussion and Analysis of Financial Condition
               and Results of Operations                                   10

      Item 3.  Quantitative and Qualitative Disclosures About
               Market Risk                                                 27

      Item 4.  Internal Controls and Procedures                            27


PART II. OTHER INFORMATION

      Item 2.  Changes in Securities and Use of Proceeds

      Item 6.  Exhibits and Reports on Form 8-K                            28
                                       i
<PAGE>
                        PART I.  FINANCIAL INFORMATION
<TABLE>
<CAPTION>
ITEM 1. FINANCIAL STATEMENTS

PSB HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
March 31, 2004 unaudited, December 31, 2003 derived from audited financial
statements)

                                                                March 31,  December 31,
(dollars in thousands, except per share data)                           2004         2003
ASSETS
<S>                                                                <C>          <C>
Cash and due from banks                                            $  13,024    $  13,754
Interest-bearing deposits and money market funds                       5,424        1,214
Federal funds sold                                                         -        3,959
Cash and cash equivalents                                             18,448       18,927
Securities available for sale (at fair value)                         73,095       72,472
Federal Home Loan Bank stock (at cost)                                 2,484        2,444
Loans held for sale                                                      140          207
Loans receivable, net of allowance for loan losses of $3,700
   and $3,536, respectively                                          314,310      304,339
Accrued interest receivable                                            1,716        1,617
Foreclosed assets                                                         82           84
Premises and equipment                                                 9,341        7,557
Mortgage servicing rights, net                                           753          814
Other assets                                                             369          472
TOTAL ASSETS                                                        $420,738     $408,933

LIABILITIES
Non-interest-bearing deposits                                      $  45,281    $  50,563
Interest-bearing deposits                                            272,422      265,851
   Total deposits                                                    317,703      316,414
Federal Home Loan Bank advances                                       47,000       47,000
Other borrowings                                                      20,826       10,475
Accrued expenses and other liabilities                                 1,695        2,903
   Total liabilities                                                 387,224      376,792

STOCKHOLDERS' EQUITY
Common stock - no par value with a stated value of $1 per share:
   Authorized - 3,000,000 shares
   Issued - 1,887,179 shares                                           1,887        1,887
Additional paid-in capital                                             9,694        9,694
Retained earnings                                                     23,743       22,789
Accumulated other comprehensive income                                 1,255          844
Treasury stock, at cost - 153,549 and 153,781 shares, respectively    (3,065)      (3,073)
   Total stockholders' equity                                         33,514       32,141
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                          $420,738     $408,933
</TABLE>
                                       1
<PAGE>
<TABLE>
<CAPTION>
PSB HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
                                                        Three Months Ended
(dollars in thousands, except per share data - unaudited)    March 31,
                                                        2004         2003
<S>                                                   <C>          <C>
Interest income:
   Interest and fees on loans                         $4,554       $4,396
   Interest on securities:
      Taxable                                            461          615
      Tax-exempt                                         243          223
   Other interest and dividends                           46           59
         Total interest income                         5,304        5,293

Interest expense:
   Deposits                                            1,291        1,512
   FHLB advances                                         466          508
   Other borrowings                                       73           41
         Total interest expense                        1,830        2,061
Net interest income                                    3,474        3,232
Provision for loan losses                                240          225
Net interest income after provision for loan losses    3,234        3,007

Noninterest income:
   Service fees                                          291          303
   Mortgage banking                                      160          628
   Investment and insurance sales commissions             91           99
   Net gain on sale of securities                        111            -
   Other noninterest income                               87           92
         Total noninterest income                        740        1,122

Noninterest expense:
   Salaries and employee benefits                      1,548        1,448
   Occupancy and facilities                              301          288
   Data processing and other office operations           160          139
   Advertising and promotion                              34           37
   Other noninterest expenses                            559          405
        Total noninterest expense                      2,602        2,317

Income before provision for income taxes               1,372        1,812
Provision for income taxes                               418          588

Net income                                            $  954       $1,224

Basic earnings per share                              $ 0.55       $ 0.70
Diluted earnings per share                            $ 0.55       $ 0.70
</TABLE>
                                       2
<PAGE>
PSB HOLDINGS, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Three months ended March 31, 2004 - unaudited

                                                                                Accumulated
                                            Additional                             Other
                                             Common     Paid-in    Retained    Comprehensive  Treasury
(dollars in thousands)                        Stock      Capital    Earnings       Income        Stock    Totals
<S>                                          <C>        <C>        <C>           <C>          <C>       <C>
Balance January 1, 2004                      $1,887     $9,694     $22,789         $844       $(3,073)  $32,141

Comprehensive income:
   Net income                                                          954                                  954
   Unrealized gain (loss) on securities
      available for sale, net of tax                                                478                     478
   Reclassification adjustment for security
      gain included in net income, net of tax                                       (67)                    (67)

         Total comprehensive income                                                                       1,365

Distribution of treasury stock in settlement
   of liability to Company directors                                                                8         8

Balance March 31, 2004                       $1,887     $9,694     $23,743       $1,255       $(3,065)  $33,514
</TABLE>
                                       3
<PAGE>
<TABLE>
<CAPTION>
PSB HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended March 31, 2004 and 2003 - unaudited

                                                                  2004         2003
Cash flows from operating activities:
<S>                                                           <C>         <C>
   Net income                                                 $   954     $  1,224
   Adjustments to reconcile net income to net
      cash provided by operating activities:
         Provision for depreciation and net amortization          244          317
         Provision for loan losses                                240          225
         Gain on sale of mortgage loans                          (154)        (606)
         Provision for servicing right valuation allowance         60           -
         Gain on sale of foreclosed assets                        (17)          -
         Gain on sale of securities                              (111)          -
         FHLB stock dividends                                     (40)         (63)
         Changes in operating assets and liabilities:
            Accrued interest receivable                           (99)        (146)
            Other assets                                         (118)         363
            Other liabilities                                  (1,200)        (882)
   Net cash provided by (used in) operating activities           (241)         432

Cash flows from investing activities:

   Proceeds from sale and maturities of:
      Securities available for sale                             3,808       12,687
   Payment for purchase of:
      Securities available for sale                            (3,749)      (7,848)
   Net (increase) decrease in loans                           (10,029)       1,158
   Capital expenditures                                        (1,908)        (100)
   Proceeds from sale of foreclosed assets                          -            5
   Net cash provided by (used in) investing activities        (11,878)       5,902

Cash flows from financing activities:

   Net increase (decrease) in non-interest-bearing deposits    (5,282)         592
   Net increase (decrease) in interest-bearing deposits         6,571       (5,843)
   Proceeds from long-term FHLB advances                       10,000           -
   Repayments of long-term FHLB advances                      (10,000)          -
   Net increase in other borrowings                            10,351        1,399
   Purchase of treasury stock                                       -          (48)
   Net cash provided by (used in) financing activities         11,640       (3,900)
</TABLE>
                                       4
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
<S>                                                             <C>          <C>
Net increase (decrease) in cash and cash equivalents               (479)       2,434
Cash and cash equivalents at beginning                           18,927       21,552

Cash and cash equivalents at end                                $18,448      $23,986

Supplemental cash flow information:

Cash paid during the period for:
      Interest                                                  $ 1,825      $ 2,124
      Income taxes                                                  408           45

Noncash investing and financing activities:

      Loans charged off                                         $    83      $    79
      Loans transferred to foreclosed assets                          -            4
      Loans originated on sale of foreclosed assets                  17           67
      Distribution of treasury stock in settlement of liability
         to Company directors                                         8            -
</TABLE>
                                       5

                              PSB Holdings, Inc.
                  Notes to Consolidated Financial Statements


NOTE 1 - GENERAL

In the opinion of management, the accompanying unaudited consolidated financial
statements contain all adjustments necessary to present fairly PSB Holdings,
Inc.'s ("Company") financial position, results of its operations, and cash
flows for the periods presented, and all such adjustments are of a normal
recurring nature.  The consolidated financial statements include the accounts
of all subsidiaries.  All material intercompany transactions and balances are
eliminated. The results of operations for the interim periods are not
necessarily indicative of the results to be expected for the full year.

These interim consolidated financial statements have been prepared according to
the rules and regulations of the Securities and Exchange Commission and,
therefore, certain information and footnote disclosures normally presented in
accordance with generally accepted accounting principles have been omitted or
abbreviated.  The information contained in the consolidated financial
statements and footnotes in PSB's 2003 annual report on Form 10-K, should be
referred to in connection with the reading of these unaudited interim financial
statements.

In preparing the consolidated financial statements, management is required to
make estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the balance sheet and revenues and expenses for
the period.  Actual results could differ significantly from those estimates.
Estimates that are susceptible to significant change include the determination
of the allowance for loan losses, mortgage servicing right asset, and the
valuation of investment securities.
<PAGE>
NOTE 2 - STOCK-BASED COMPENSATION

PSB records expense relative to stock-based compensation using the "intrinsic
value method".  Since the exercise price is equal to the fair value of PSB's
common stock on the date of the award, the intrinsic value of PSB's stock
options is "zero" at the time of the award and no expense is recorded.

As permitted by generally accepted accounting principles, PSB has not adopted
the "fair value method" of expense recognition for stock-based compensation
awards.  Rather, the effects of the fair value method on PSB's earnings are
presented on a pro forma basis.  Because no grants of stock options were made
during the three months ended March 31, 2004 and 2003, there was no pro forma
impact to net income or earnings per share during these periods.

Under the terms of an incentive stock option plan adopted during 2001, shares
of unissued common stock are reserved for options to officers and key employees
at prices not less than the fair market value of the shares at the date of the
grant.  These options expire 10 years after the grant date.  As of March 31,
2004, 28,237 options outstanding were eligible to be exercised at a
                                       6
weighted average exercise price of $16.00 per share.  No additional shares of
common stock remain reserved for future grants under the option plan approved
by the shareholders.

NOTE 3 - EARNINGS PER SHARE

Basic earnings per share of common stock are based on the weighted average
number of common shares outstanding during the period.  Diluted earnings per
share is calculated by dividing net income by the weighted average number of
shares adjusted for the dilutive effect of outstanding stock options.
Presented below are the calculations for basic and diluted earnings per share:
<TABLE>
<CAPTION>
                                                        Three months ended
(dollars in thousands, except per share data)                March 31,
                                                         2004        2003
<S>                                                  <C>         <C>
Net income                                             $   954      $1,224

Weighted average shares outstanding                  1,733,531   1,749,015
Effect of dilutive stock options outstanding            15,130       9,677

Diluted weighted average shares outstanding          1,748,661   1,758,692

Basic earnings per share                               $  0.55     $  0.70
Diluted earnings per share                             $  0.55     $  0.70
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NOTE 4 - COMPREHENSIVE INCOME

Comprehensive income as defined by current accounting standards for the three
months ended March 31, 2004 and 2003 is as follows:

(dollars in thousands - unaudited)                        Three months ended
                                                               March 31,
                                                          2004         2003
<S>                                                   <C>           <C>
Net income                                            $   954       $1,224
Unrealized gain (loss) on securities
  available for sale, net of tax                          478         (108)
Reclassification adjustment for security
  gain included in net income, net of tax                 (67)          -

Comprehensive income                                   $1,365       $1,116
</TABLE>
NOTE 5 - LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES

Loans receivable are stated at unpaid principal balances plus net deferred loan
origination costs less loans in process and the allowance for loan losses.
                                       7
Interest on loans is credited to income as earned.  Interest income is not
accrued on loans where management has determined collection of such interest is
doubtful or those loans which are past due 90 days or more as to principal or
interest payments.  When a loan is placed on nonaccrual status, previously
accrued but unpaid interest deemed uncollectible is reversed and charged
against current income.  After being placed on nonaccrual status, additional
income is recorded only to the extent that payments are received or the
collection of principal becomes reasonably assured.  Interest income
recognition on loans considered to be impaired under current accounting
standards is consistent with the recognition on all other loans.

Loan origination fees and certain direct loan origination costs are deferred
and amortized to income over the contractual life of the underlying loan.

The allowance for loan losses is established through a provision for loan
losses charged to expense.  Loans are charged against the allowance for loan
losses when management believes that the collectibility of the principal is
unlikely.  Management believes the allowance for loan losses is adequate to
cover probable credit losses relating to specifically identified loans, as well
as probable credit losses inherent in the balance of the loan portfolio.  In
accordance with current accounting standards, the allowance is provided for
losses that have been incurred as of the balance sheet date.  The allowance is
based on past events and current economic conditions, and does not include the
effects of expected losses on specific loans or groups of loans that are
related to future events or expected changes in economic conditions.  While
management uses the best information available to make its evaluation, future
adjustments to the allowance may be necessary if there are significant changes
in economic conditions.

The allowance for loan losses includes specific allowances related to loans
which have been judged to be impaired as defined by current accounting
standards.  A loan is impaired when, based on current information, it is
<PAGE>
probable that PSB will not collect all amounts due in accordance with the
contractual terms of the loan agreement.  Management has determined that
commercial, financial, agricultural, and commercial real estate loans that have
a nonaccrual status or have had their terms restructured meet this definition.
Large groups of homogenous loans, such as residential mortgage and consumer
loans, are collectively evaluated for impairment.  Specific allowances are
based on discounted cash flows of expected future payments using the loans'
initial effective interest rate or the fair value of collateral if the loan is
collateral dependent.

In addition, various regulatory agencies periodically review the allowance for
loan losses.  These agencies may require the subsidiary Bank to make additions
to the allowance for loan losses based on their judgments of collectibility
based on information available to them at the time of their examination.

Mortgage loans originated and intended for sale in the secondary market are
carried at the lower of cost or estimated market value in the aggregate and are
carried as "Loans held for sale" on the balance sheet.  Net unrealized losses
are recognized through a valuation allowance by charges to income.  Gains and
losses on the sale of loans held for sale are determined using the specific
identification method using quoted market prices.
                                       8
NOTE 6 - FORECLOSED REAL ESTATE

Real estate properties acquired through, or in lieu of, loan foreclosure are to
be sold and are initially recorded at fair value (after deducting estimated
costs to sell) at the date of foreclosure, establishing a new cost basis.
Costs related to development and improvement of property are capitalized,
whereas costs related to holding property are expensed.  After foreclosure,
valuations are periodically performed by management and the real estate is
carried at the lower of carrying amount or fair value less estimated costs to
sell.  Revenue and expenses from operations and changes in any valuation
allowance are included in loss on foreclosed real estate.

NOTE 7 - CONTINGENCIES

In the normal course of business, PSB is involved in various legal proceedings.
In the opinion of management, any liability resulting from such proceedings
would not have a material adverse effect on the consolidated financial
statements.

Like many Wisconsin financial institutions, PSB has a Nevada based subsidiary
that holds and manages investment assets which have not been subject to
Wisconsin tax.  The Wisconsin Department of Revenue (the "Department") has
instituted an audit program specifically aimed at out-of-state bank
subsidiaries and has indicated it will withdraw favorable rulings previously
issued in connection with such subsidiaries.  As a result of these
developments, the Department is taking the position that a portion of the
income of the out-of-state subsidiaries is taxable in Wisconsin and has or
intends to seek settlements from Wisconsin chartered banks for taxes on income
related to these subsidiaries.  PSB's subsidiary bank is currently under audit
by the Department, although no demand for additional taxes from the Department
has been received as of the date of the filing of this report.  Based on
information available to PSB with respect to the Department's position in
unrelated cases, PSB believes that a successful claim made by the Departments
would likely have a material adverse effect on PSB's results of operations for
<PAGE>
the year in which it was made.  Based on such information, PSB also believes
that if the Department is successful in its position, future earnings may be
adversely affected in the range of $.06 to $.07 per share on an annual basis,
based on current interest levels on the securities and other assets now held in
the Nevada subsidiary's portfolio.  PSB believes that it complied with
Wisconsin law and the private ruling received from the Department and that it
is not liable for any taxes or interest that the Department may claim.
Should an assessment be forthcoming, PSB intends to defend its position
vigorously through the normal administrative appeals process in place at the
Department and through other judicial channels should they become necessary.
PSB has not recorded any additional tax expense in connection with this audit.

In addition, the Internal Revenue Service ("IRS") is currently conducting an
audit of PSB's open tax returns.  PSB has been assessed approximately $170,000
in taxes, interest and penalties as a result of the IRS audit; however, this
assessment is in the process of being appealed.  PSB believes all tax returns
were filed appropriately and at this time no additional tax expense has been
recorded.
                                       9

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

The following discussion and analysis is presented to assist in the
understanding and evaluation of PSB's financial condition and results of
operations.  It is intended to complement the unaudited financial statements,
footnotes, and supplemental financial data appearing elsewhere in this Form 10-
Q and should be read in conjunction therewith.  Dollar amounts are in
thousands, except per share amounts.  The quarterly report on Form 10-Q
describes the business of PSB Holdings, Inc. and its subsidiary Peoples State
Bank as in effect on March 31, 2004, and any reference to "PSB" refers to the
consolidated or individual operations of PSB Holdings, Inc. and Peoples State
Bank.

Forward-looking statements have been made in this document that are subject to
risks and uncertainties.  While PSB believes these forward-looking statements
are based on reasonable assumptions, all such statements involve risk and
uncertainties that could cause actual results to differ materially from those
contemplated in this report.  The assumptions, risks, and uncertainties
relating to the forward-looking statements in this report include those
described under the caption "Cautionary Statements Regarding Forward-Looking
Information" in Part I of PSB's Form 10-K for the year ended December 31, 2003
and, from time to time, in PSB's other filings with the Securities and Exchange
Commission.
<PAGE>
BALANCE SHEET

At March 31, 2004, total assets were $420,738, an increase of $52,936, or
14.4%, over March 31, 2003.  Asset growth since March 31, 2003 consisted of:
<TABLE>
<CAPTION>
                                                       $         %
<S>                                                <C>         <C>
Increase in commercial real estate loans           $34,428     29.1%
Increase in residential real estate mortgage loans  19,520     33.8%
Increased investment in premises and equipment       3,208     52.3%
Decrease in investment securities                   (2,800)    (3.7%)
Decrease in remaining assets (various categories)   (1,420)    (1.3%)

Total increase in assets                           $52,936     14.4%
</TABLE>
During the twelve months ended March 31, 2004, commercial real estate mortgages
increased primarily from new commercial construction and financing owner
occupied commercial retail buildings, office space, and warehouses.  Non-real
estate commercial and industrial loans have experienced a shift in which
personal property and equipment secured loans have declined while cash flow
business lines of credit have increased.

The amount of residential real estate mortgages held increased since March 31,
2003 and since December 31, 2003 by a substantial amount, and constitutes a
higher percentage of the total loan portfolio.  The increase in residential
mortgages during the past twelve months is from PSB retaining some 15 year
fixed rate mortgages rather than selling the principal to the secondary market.
These mortgages were retained as part of an asset-liability management strategy
to
                                       10
maximize net interest margin without a significant increase in interest rate
risk due to the current cash and projected liquidity position in light of
interest sensitivity of the entire balance sheet and opportunities for re-
investment of investment security cash flows into loans or other new
securities.  The amount of 15 year fixed rate mortgages originated by the
program during 2003 was approximately $12.0 million with an average yield of
4.95%.  Approximately one-half of this production was funded by maturing and
prepaid mortgage backed investment securities during this period.  This program
was discontinued during August 2003 and all 15 year fixed rate mortgage loans
currently originated by PSB are sold to other investors on the secondary market
to eliminate the associated interest rate risk.  Other increases in residential
real estate loans are primarily from balloon type mortgages with initial fixed
rates periods ranging from 3 to 7 years.

As PSB reallocated resources to handle demand for residential real estate loans
prompted by historically low interest rates, it experienced substantial
repayments of consumer retail installment loans that were not replaced.  A
portion of these consumer balances were converted to home equity loans.  In
additional, in its markets, PSB faces substantial competition from credit
unions and other financial institutions for retail installment lending such as
auto loans.  PSB does not expect consumer lending to be a key focus in the near
term, and expects consumer loan principal to continue to decline slowly.

The increase in premises and equipment is due to ongoing construction of PSB's
home office and financial center to be located on the same property as the
<PAGE>
current home office.  Work on the new building began during August 2003 and is
expected to be completed by June 30, 2004.  As of March 31, 2004, approximately
$3 million of the expected $4.6 million final cost was spent on the project.

Asset growth since December 31, 2003 of $11,805 has consisted primarily of
gross loan growth totaling $10,135.  The make-up of these loans is similar to
that seen during the twelve months ended March 31, 2004 and is outlined in
Table 1 below.  This growth was funded via short-term (primarily overnight
borrowings) since December 31, 2003 with net growth totaling $10,351.

Asset growth since March 31, 2003 was funded by the following:
<TABLE>
<CAPTION>
                                                            $      %
<S>                                                    <C>         <C>
Increase in core deposits (including MMDA deposits)    $14,852     9.81%
Increase in wholesale overnight borrowings              11,375      n/a
Increase in FHLB advances                                9,000     23.7%
Increase in wholesale certificates of deposit            7,098     17.4%
Increase in stockholders' equity                         3,144     10.4%
Increase in overnight retail repurchase agreements       2,205      n/a
Increase in other liabilities (various categories)       5,262      4.9%

Total increase in liabilities and stockholders' equity $52,936     14.4%
</TABLE>
                                       11
<TABLE>
<CAPTION>
Table 1:  Period-End Loan Composition

                                                  March 31,         March 31,      December 31, 2003
                                             Dollars   Dollars Percentage of total    Percentage
(dollars in thousands)                         2004     2003    2004     2003      Dollars  of total
<S>                                        <S>       <C>        <C>      <C>      <C>       <C>
Commercial, industrial and agricultural    $ 70,995  $ 65,537   22.3%    25.3%    $ 66,934   21.7%
Commercial real estate mortgage             152,852   118,424   48.1%    45.7%     148,685   48.3%
Residential real estate mortgage             77,322    57,802   24.3%    22.3%      75,276   24.4%
Residential real estate loans held for sale     140         -    0.0%     0.0%         207    0.1%
Consumer home equity                          9,591     7,364    3.0%     2.8%       9,252    3.0%
Consumer and installment                      7,250    10,137    2.3%     3.9%       7,728    2.5%

Totals                                     $318,150  $259,264  100.0%   100.0%    $308,082  100.0%
</TABLE>
The loan portfolio is PSB's primary asset subject to credit risk.  PSB's
process for monitoring credit risks includes weekly analysis of loan quality,
delinquencies, non-performing assets, and potential problem loans.  Loans are
placed on a nonaccrual status when they become contractually past due 90 days
or more as to interest or principal payments.  All interest accrued but not
collected for loans (including applicable impaired loans) that are placed on
nonaccrual or charged off is reversed against interest income.  The interest on
these loans is accounted for on the cash basis until qualifying for return to
accrual status.  Loans are returned to accrual status when all the principal
and interest amounts contractually due have been collected and there is
reasonable assurance that repayment according to the contractual terms will
continue.
<PAGE>
The aggregate amount of nonperforming assets increased $366 to $3,790 at March
31, 2004 from $3,424 at March 31, 2003.  Although restructured loans decreased,
total nonaccrual loans increased $1,189.  Nonperforming assets also increased
$371 from $3,419 at December, 31, 2003.  Nonperforming loans also include
restructured loans until 6 consecutive monthly payments are received under the
new loan terms.  Total nonperforming assets as a percentage of total assets
continues to be stable with .90% and .93% at March 31, 2004 and 2003,
respectively.  PSB also tracks delinquencies on a contractual basis quarter to
quarter.  Loans contractually delinquent 30 days or more as a percentage of
gross loans were .88% at March 31, 2004 compared to .63% at December 2003 and
..85% at March 31, 2003.  The allowance for loan losses was 1.16% of gross loans
at March 2004 compared to 1.28% at March 2003.
<TABLE>
<CAPTION>
Table 2:  Allowance for Loan Losses
                                                         Three months ended
                                                              March 31,
(dollars in thousands)                                   2004         2003
<S>                                                    <C>          <C>
Allowance for loan losses at beginning                 $3,536       $3,158

Provision for loan losses                                 240          225
Recoveries on loans previously charged-off                  7           11
Loans charged off                                         (83)         (79)

Allowance for loan losses at end                       $3,700       $3,315
</TABLE>
                                       12
Nonperforming assets include: 1) loans that are either contractually past due
90 days or more as to interest or principal payments, on a nonaccrual status,
or the terms of which have been renegotiated to provide a reduction or deferral
of interest or principal (restructured loans) and 2) foreclosed assets.
<TABLE>
<CAPTION>
Table 3:  Nonperforming Assets

                                                  March 31,       December 31,
(dollars in thousands)                         2004       2003         2003
<S>                                          <C>        <C>          <C>
Nonaccrual loans                             $3,225     $2,036       $3,119
Accruing loans past due 90 days or more         270        -            -
Restructured loans not on nonaccrual            213        883          216

Total nonperforming loans                     3,708      2,919        3,335
Foreclosed assets                                82        505           84

Total nonperforming assets                   $3,790     $3,424       $3,419

Nonperforming loans as a % of gross
   loans receivable                           1.17%      1.13%        1.08%
Total nonperforming assets as a % of total
   assets                                     0.90%      0.93%        0.84%
</TABLE>
<PAGE>
LIQUIDITY

Liquidity refers to the ability of PSB to generate adequate amounts of cash to
meet PSB's need for cash at a reasonable cost.  PSB manages its liquidity to
provide adequate funds to support borrowing needs and deposit flow of its
customers.  Management views liquidity as the ability to raise cash at a
reasonable cost or with a minimum of loss and as a measure of balance sheet
flexibility to react to marketplace, regulatory, and competitive changes.
Deposit growth is the primary source of funding.  Retail core and time deposits
as a percentage of total funding sources were 70.0% at March 31, 2004, and
75.1% at March 31, 2003.  Wholesale borrowings and broker and national
certificates of deposit represent the balance of PSB's total funding needs,
which has increased steadily during the past two years.
                                       13
<TABLE>
<CAPTION>
Table 4: Period-end Deposit Composition
                                                                    March 31,
                                                            2004                2003
(dollars in thousands)                                  $         %          $         %
<S>                                               <C>         <C>      <C>         <C>
Non-interest bearing demand                       $ 45,281     14.3%   $ 46,050     15.7%
Interest-bearing demand and savings                 54,253     17.1%     38,236     13.1%
Money market deposits                               66,711     20.9%     67,107     23.0%
Retail time deposits less than $100                 59,753     18.8%     61,805     21.1%
Retail time deposits $100 and over                  43,767     13.8%     38,542     13.2%
Broker & national time deposits less than $100       9,728      3.1%     12,055      4.1%
Broker & national time deposits $100 and over       38,210     12.0%     28,785      9.8%

Totals                                            $317,703    100.0%   $292,580    100.0%
</TABLE>
The interest rate paid on money market deposits is adjustable based on PSB's
discretion but generally tracks the movements of national money market funds.
PSB also offered a new overnight retail repurchase agreement to commercial
customers that provided $2,205 of short-term borrowed funds as of March 31,
2004.  Deposits due to investors as part of PSB's secondary market loan
servicing activities included in total non-interest bearing demand deposits
were approximately $5.1 million at March 31, 2004, compared to $7.1 million at
March 31, 2003.
<TABLE>
<CAPTION>
Table 5: Summary of Changes by Significant Deposit Source

                                                         March 31, % Change from prior year
(dollars in thousands)                               2004     2003      2004     2003
<S>                                                <C>     <C>          <C>     <C>
Total time deposits $100 and over                  $81,977 $ 67,327     21.8%   15.7%
Total broker and national time deposits             47,938   40,840     17.4%   36.4%
Total retail time deposits                         103,520  100,347      3.2%    2.5%
Core deposits, including money market deposits     166,245  151,393      9.8%   11.2%
</TABLE>
To fund larger commercial loan originations or acquire other large blocks of
funding, PSB actively purchases broker and other national time deposits.  PSB
actively manages such deposits to control the potential volatility of such
funds while lowering overall deposit borrowing costs. Consequently, broker and
national deposits increased substantially over the prior year, while local
retail deposits have shown modest growth in comparison.  Company policy is to
<PAGE>
limit broker and national time deposits to 20% of total assets.  As of March
31, 2004, broker and national time deposits were 11.4% of total assets compared
to 11.1% at March 31, 2003.

The increase in deposits of $25,123 (including broker and national time
deposits) has been inadequate to fund asset growth during the twelve months
ending March 31, 2004.  Consequently wholesale borrowings, both short and long
term totaling $20,375 were also obtained.  The change in wholesale borrowings
consisted of:
                                       14

Increase in federal funds purchased                            $11,375
Net increase in FHLB short-term advances                         5,000
Net increase in FHLB long-term advances                          4,000

Total increase in wholesale borrowings                         $20,375

Unused credit advances from the Federal Home Loan Bank of Chicago available to
PSB at March 31, 2004 totaled approximately $34 million based on an open line
of credit and securities available for pledging for advances.  In addition, PSB
had unused commitments from other correspondent banks for federal funds
purchased up to $11.1 million.  The primary alternative funding sources
utilized are Federal Home Loan Bank advances, federal funds purchased,
repurchase agreements from a base of individuals, businesses and public
entities, and brokered time deposits.  PSB believes its current liquidity
position and sources of funds for liquidity management is adequate.

Table 6 below presents maturity repricing information as of March 31, 2004.
The following repricing methodologies should be noted:

1.    Money market deposit accounts are considered fully repriced within 90
      days.  NOW and savings accounts are considered "core" deposits as they
      are generally insensitive to interest rate changes.  These deposits are
      considered to reprice beyond 5 years.

2.    Nonaccrual loans are considered to reprice beyond 5 years.

3.    Assets and liabilities with contractual calls or prepayment options are
      repriced according to the likelihood of the call or prepayment being
      exercised in the current interest rate environment.

4.    Impact of rising or falling interest rates is based on a parallel yield
      curve change that is fully implemented within a 12 month time horizon.
                                       15
<PAGE>
<TABLE>
<CAPTION>
Table 6: Interest Rate Sensitivity Gap Analysis

                                                                       March 31, 2004
(dollars in thousands)           0-90 days 91-180 days 181-365 days  1-2 yrs  Beyond 2-5 yrs  Beyond 5 yrs Total
<S>                              <C>        <C>        <C>          <C>         <C>           <C>       <C>
Earning assets:
  Loans                          $112,357   $ 27,638    $ 34,400     $ 56,487   $ 68,206      $ 19,062  $318,150
  Securities                        5,075      5,599       7,723       17,446     22,326        14,926    73,095
  FHLB stock                        2,484                                                                  2,484
  Other earning assets              5,424                                                                  5,424

Total                            $125,340   $ 33,237    $ 42,123     $ 73,933   $ 90,532      $ 33,988  $399,153
Cumulative rate
  sensitive assets               $125,340   $158,577    $200,700     $274,633   $365,165      $399,153

Interest-bearing liabilities
  Interest-bearing deposits      $ 95,624   $ 30,026    $ 36,281     $ 18,880   $ 33,524      $ 58,087  $272,422
  FHLB advances                    10,000                 13,000        6,000     18,000            -     47,000
  Other borrowings                 15,374      2,909         252          984      1,307                  20,826

Total                            $120,998   $ 32,935    $ 49,533     $ 25,864   $ 52,831      $ 58,087  $340,248
Cumulative interest
 sensitive liabilities           $120,998   $153,933    $203,466     $229,330   $282,161      $340,248

Interest sensitivity gap for
  the individual period          $  4,342   $    302    $ (7,410)    $ 48,069   $ 37,701      $(24,099)
Ratio of rate sensitive assets to
  rate sensitive liabilities for
  the individual period             103.6%     100.9%       85.0%       285.9%     171.4%         58.5%

Cumulative interest
  sensitivity gap                $  4,342   $  4,644    $ (2,766)    $ 45,303   $  83,004     $ 58,905
Cumulative ratio of rate sensitive
  assets to rate sensitive
  liabilities                       103.6%     103.0%       98.6%       119.8%      129.4%       117.3%
</TABLE>
At March 31, 2004, if interest rates rose 200 basis points or fell 100 basis
points, the 365 day cumulative ratio of rate sensitive assets to rate sensitive
liabilities would change from 98.6% to 94.0% (if up 200 basis points) and
103.4% (if down 100 basis points), respectively.  At March 31, 2003, if
interest rates rose 200 basis points or fell 100 basis points, the 365 day
cumulative ratio of rate sensitive assets to rate sensitive liabilities would
have changed from 116.4% to 106.6% (if up 200 basis points) and 114.7% (if down
100 basis points), respectively.  During the twelve months ended March 31,
2004, PSB has increased the amount of fixed rate commercial loans held (with
original fixed terms generally from 3 to 5 years) which have been funded by
short-term wholesale borrowings.  This has had the impact of lowering the
cumulative gap ratio to be less asset sensitive than it was twelve months ago
and actually changing to be slightly liability sensitive during that time frame
as of March 31, 2004.

The Asset/Liability Committee uses financial modeling techniques that measure
the interest rate risk.  Policies established by the Bank's Asset/Liability
Committee are intended to limit exposure of earnings at risk.  A formal
<PAGE>
liquidity contingency plan exists that directs management to the least
expensive liquidity sources to fund sudden and unanticipated liquidity needs.
PSB also
                                       16
uses various policy measures to assess adequacy of PSB's liquidity and
interest rate risk as described below.

Basic Surplus

PSB measures basic surplus as the amount of existing net liquid assets (after
deducting short-term liabilities and coverage for anticipated deposit funding
outflows during the next 30 days) divided by total assets.  The basic surplus
calculation does not consider unused but available correspondent bank federal
funds purchased, as those funds are subject to availability based on the
correspondent bank's own liquidity needs and therefore are not guaranteed
contractual funds.  PSB's basic surplus, including available open line of
credit FHLB advances not yet utilized at March 31, 2004 and 2003 was 5.5% and
14.2%, respectively and above the 5% minimum required by policy.  The decline
in the basic surplus is a result of additional FHLB borrowings ($9,000 or an
increase of 23.7%) made since March 31, 2003 and increase of $11,375 in federal
funds purchased (PSB had federal funds sold of $2,771 at March 31, 2003).

Interest Rate Risk Limits

PSB balances the need for liquidity with the opportunity for increased net
interest income available from longer term loans held for investment and
securities.  To measure the impact on net interest income from interest rate
changes, PSB models interest rate simulations on a quarterly basis.  Company
policy is that projected net interest income over the next 12 months will not
be reduced by more than 15% given a change in interest rates of up to 200 basis
points.  At March 31, 2004, net interest income for the next 12 months was
projected to decrease .60% if rates increased 200 basis points, and was
projected to decrease .95% if rates decreased 100 basis points, which is less
than the 15% required by policy and was considered acceptable by management.
At March 31, 2003, net interest income for the next 12 months was projected to
increase 3.17% if rates increased 200 basis points, and was projected to
decrease .89% if rates decreased 100 basis points.

Core Funding Utilization

To assess whether interest rate sensitivity beyond one year helps mitigate or
exacerbate the short-term rate sensitive position, a quarterly measure of core
funding utilization is made.  Core funding is defined as liabilities with a
maturity in excess of 60 months and capital.  "Core" deposits including DDA,
NOW and non-maturity savings accounts (except money market accounts) are also
considered core long-term funding sources.  The core funding utilization ratio
is defined as assets with a maturity in excess of 60 months divided by core
funding.  PSB's target for the core funding utilization ratio is to remain at
80% or below given the same 200 basis point changes in rates that apply to the
guidelines for interest rate risk limits exposure described previously.  At
March 31, 2004, PSB's core funding utilization ratio was projected to be 46.4%
if rates increased 200 basis points and was therefore within policy
requirements.  At March 31, 2003, PSB's core funding utilization ratio was
projected to be 38.39% if rates increased 200 basis points.
                                       17
<PAGE>
CAPITAL RESOURCES

Stockholders' equity at March 31, 2004 increased $3,144 to $33,514 or 10.4%
from $30,370 at March 31, 2003.  Net income during the twelve months ended
March 31, 2004, net of cash dividends and shareholder stock buybacks was $2,985
and all other increases in capital totaled $159.  Stockholders' equity included
unrealized gains on securities available for sale, net of their tax effect, of
$1,255 at March 31, 2004 compared to unrealized gains of $1,198 at March 31,
2003.

The adequacy of PSB's capital is regularly reviewed to ensure sufficient
capital is available for current and future needs and is in compliance with
regulatory guidelines.  As of March 31, 2004 and 2003, the Subsidiary Bank's
Tier 1 risk-based capital ratio, total risk-based capital, and Tier 1 leverage
ratio were in excess of regulatory minimums and were classified as "well-
capitalized".  Failure to remain well-capitalized would prevent PSB from
obtaining future wholesale broker time deposits which have been an important
source of funding during the past several years. Average tangible stockholder's
equity was 7.83% during the quarter ended March 2004 compared to 7.84% in the
prior year quarter.  Management believes PSB to be well capitalized at March
31, 2004 and expects to remain well capitalized during 2004 based on planned
asset growth and shareholder dividend payments.

PSB maintains an annual, ongoing share repurchase program of up to 1% of
outstanding shares per year although no shares were purchased during the first
quarter of 2004.  During the quarter ended March 31, 2003, PSB repurchased
1,890 shares at an average price of $25.46 per share in its annual buyback
program.  For the remainder of 2004, management anticipates retaining capital
to support asset growth while continuing a cash dividend to shareholders.
<TABLE>
<CAPTION>
Table 7:  Capital Ratios - Consolidated Holding Company

(dollars in thousands)                                                 March 31,        Dec. 31,
                                                                  2004        2003        2003
<S>                                                            <C>         <C>         <C>
Stockholders' equity                                           $  33,514   $  30,370   $  32,141
Disallowed mortgage servicing right assets                           (75)        (94)        (81)
Unrealized gain on securities available for sale                  (1,255)     (1,198)       (844)

Tier 1 regulatory capital                                         32,184      29,078      31,216
Add: allowance for loan losses                                     3,700       3,315       3,536

Total regulatory capital                                       $  35,884   $  32,393   $  34,752

Total assets                                                    $420,738    $367,802    $408,933
Disallowed mortgage servicing right assets                           (75)        (94)        (81)
Unrealized gain on securities available for sale                  (1,255)     (1,198)       (844)

Tangible assets                                                 $419,408    $366,510    $408,008
Risk-weighted assets (as defined by current regulations)        $327,563    $276,166    $318,005
                                       18
Tier 1 capital to period end tangible assets (leverage ratio)       7.67%       7.93%      7.65%
Tier 1 capital to adjusted risk-weighted assets                     9.83%      10.53%      9.82%
Total capital to adjusted risk-weighted assets                     10.95%      11.73%     10.93%
</TABLE>
<PAGE>
A special 5% stock dividend was paid to shareholders on January 29, 2004.  All
references in the accompanying financial statements and statistical analysis to
the number of common shares and per share amounts for 2003 have been restated
to reflect the stock dividend.

PREMISES AND EQUIPMENT

PSB announced during July 2003 the construction of a new bank and financial
services office and administrative headquarters located on property adjacent to
the existing Wausau, Wisconsin, main office location.  Construction of the
32,000 square foot office and drive-through canopy began during August with
completion anticipated by the end of the second quarter 2004.  The existing
Wausau main office which has been used since the Bank opened in 1962 and as
most recently expanded during 1992 will be razed.  Final building project costs
including necessary furniture, fixtures, and equipment are estimated to be $4.6
million.  Annual depreciation expense after this investment in fixed assets and
equipment is estimated to increase approximately $165 ($100 after income tax
benefits).  As of March 31, 2004, approximately $3 million had been spent on
the project.  The amount of interest capitalized as project costs at March 31,
2004 totaled $17.  Under current accounting rules, demolition of the old home
office will require the write-off of the remaining cost basis.  The charge of
approximately $340 ($206 after income tax benefits) is expected to be recorded
during the second quarter of 2004 assuming abandonment of the old building
during the quarter.

RESULTS OF OPERATIONS

Net income for the quarter ended March 31, 2004 was $954, or $.55 for basic and
diluted earnings per share.  Comparatively, net income for the quarter ended
March 31, 2003 was $1,224, or $.70 per share for basic and diluted earnings per
share. Operating results for the first quarter 2004 generated an annualized
return on average assets of .94% and an annualized return on average equity of
11.64%, compared to 1.36% and 16.63% for the comparable period in 2003.

The following Table 8 presents consolidated quarterly summary financial data of
PSB Holdings, Inc. and Subsidiary.
                                       19
<PAGE>
<TABLE>
<CAPTION>
Table 8: Financial Summary

(dollars in thousands, except per share data)                              Quarter ended
                                                      March 31, Dec. 31, Sept. 30,  June 30,    March 31,
EARNINGS AND DIVIDENDS:                                 2004      2003     2003       2003        2003
<S>                                               <C>        <C>        <C>        <C>        <C>
  Net interest income                                $3,474     $3,375     $3,306     $3,268     $3,232
  Provision for loan losses                         $   240    $   130    $   240    $   240    $   225
  Other noninterest income                          $   740     $1,120     $1,143    $   726     $1,122
  Other noninterest expense                          $2,602     $2,479     $2,335     $2,220     $2,317
  Net income                                        $   954     $1,290     $1,235     $1,057     $1,224

  Basic earnings per share                          $  0.55    $  0.74    $  0.71    $  0.61    $  0.70
  Diluted earnings per share                        $  0.55    $  0.74    $  0.71    $  0.60    $  0.70
  Dividends declared per share                      $     -     $0.290    $     -     $0.290    $     -
  Net book value per share                           $19.33     $18.54     $18.11     $17.74     $17.37

  Dividend payout ratio                                0.00%     38.40%      0.00%     46.88%      0.00%
  Average common shares outstanding               1,733,531  1,733,398  1,733,828  1,744,199  1,749,015

BALANCE SHEET - AVERAGE BALANCES:

  Loans receivable, net of allowances for loss     $307,109   $302,491   $288,448   $265,863   $256,715
  Assets                                           $407,577   $399,351   $389,267   $371,537   $365,906
  Deposits                                         $312,455   $312,376   $307,752   $292,698   $289,635
  Stockholders' equity                            $  32,878  $  32,095  $  31,085  $  30,670  $  29,848

PERFORMANCE RATIOS:

  Return on average assets (1)                         0.94%      1.28%      1.26%      1.14%      1.36%
  Return on average stockholders' equity (1)          11.64%     15.95%     15.76%     13.82%     16.63%
  Average tangible stockholders' equity to
    average assets                                     7.83%      7.85%      7.70%      7.92%      7.84%
  Net loan charge-offs to average loans                0.02%      0.09%      0.02%      0.01%      0.03%
  Nonperforming loans to gross loans                   1.17%      1.08%      1.09%      1.06%      1.13%
  Allowance for loan losses to gross loans             1.16%      1.15%      1.23%      1.26%      1.28%
  Net interest rate margin (1)(2)                      3.73%      3.65%      3.67%      3.83%      3.89%
  Net interest rate spread (1)(2)                      3.38%      3.24%      3.21%      3.34%      3.42%
  Service fee revenue as a percent of
    average demand deposits (1)                        2.60%      2.70%      2.48%      2.83%      2.99%
  Noninterest income as a percent
    of gross revenue                                  12.24%     17.56%     17.90%     12.13%     17.49%
  Efficiency ratio (2)                                59.73%     53.47%     50.94%     53.86%     51.67%
  Noninterest expenses to average assets (1)           2.56%      2.46%      2.38%      2.40%      2.57%

STOCK PRICE INFORMATION:

  High                                               $35.60     $36.19     $32.61     $32.38     $25.95
  Low                                                $33.50     $31.43     $31.43     $28.57     $22.62
  Market value at quarter-end                        $35.00     $33.62     $31.90     $31.67     $25.95
<FN>
(1)Annualized
(2)The yield on tax-exempt loans and securities is computed on a tax-equivalent
   basis using a tax rate of 34%.
</TABLE>
                                       20
<PAGE>
NET INTEREST INCOME

Net interest income is the most significant component of earnings. Tax adjusted
net interest income increased $254 (7.6%) from $3,362 for the quarter ended
March 31, 2003 to $3,616 for the current quarter ended March 31, 2004.
Quarterly tax-adjusted net interest margin as a percent of average interest
earning assets decreased from 3.89% in March 2003 to 3.73% in March 2004.  Net
interest margin was 3.75% for the year ended December 31, 2003.

During the past 12 months, PSB experienced compressed interest rate margins as
existing prime rate adjustable and other maturing term loans and securities
were repriced at today's significantly lower rates while deposit rates remained
near their floor.  Earning assets yields have decreased 66 basis points from
6.28% at March 2003 to 5.62% at March 2004.  However, the cost of liabilities
declined only 62 basis points from 2.86% at March 2003 to 2.24% at March 2004.
However, the decline in net interest margin from these factors appears to be
ending as net interest margin was 3.73% during the quarter ended March 2004
compared to the December and September 2003 quarters of 3.65% and 3.67%,
respectively.  In addition, yield on earning assets was 5.62% during the
quarter ended March 2004 compared to 5.60% during the quarter ended December
2003.
                                       21
<PAGE>
<TABLE>
<CAPTION>
Table 9: Net Interest Income Analysis

(dollars in thousands)                   Quarter ended March 31, 2004 Quarter ended March 31, 2003
                                        Average             Yield/   Average                Yield/
                                        Balance  Interest    Rate    Balance     Interest   Rate
<S>                                   <C>         <C>        <C>     <C>         <C>       <C>
Assets
Interest-earning assets:
  Loans (1)(2)                        $310,718    $4,571     5.90%   $259,927    $4,411    6.88%
  Taxable securities                    47,878       461     3.86%     58,212       615    4.28%
  Tax-exempt securities (2)             24,639       368     5.99%     21,583       338    6.35%
  FHLB stock                             2,471        40     6.49%      2,304        36    6.34%
  Other                                  2,953         6     0.81%      8,069        23    1.16%

  Total (2)                            388,659     5,446     5.62%    350,095     5,423    6.28%

Non-interest-earning assets:
  Cash and due from banks               11,475                          9,625
  Premises and equipment,
     net                                 8,288                          6,161
  Other assets                           2,764                          3,237
  Allowance for loan
     losses                             (3,609)                        (3,212)

  Total                               $407,577                       $365,906

Liabilities & stockholders' equity
Interest-bearing liabilities:
  Savings and demand
     deposits                          $51,820    $   85     0.66%   $ 37,728    $   62    0.67%
  Money market deposits                 66,568       154     0.93%     69,963       184    1.07%
  Time deposits                        149,235     1,052     2.83%    140,878     1,266    3.64%
  FHLB borrowings                       46,615       466     4.01%     38,000       508    5.42%
  Other borrowings                      13,555        73     2.16%      6,056        41    2.75%

  Total                                327,793     1,830     2.24%    292,625     2,061    2.86%

Non-interest-bearing liabilities:
  Demand deposits                       44,832                         41,066
  Other liabilities                      2,074                          2,367
  Stockholders' equity                  32,878                         29,848

  Total                               $407,577                       $365,906

Net interest income                                3,616                          3,362
Rate spread                                                  3.38%                         3.42%
Net yield on interest-earning assets                         3.73%                         3.89%
<FN>
(1)Nonaccrual loans are included in the daily average loan balances
   outstanding.
(2)The yield on tax-exempt loans and securities is computed on a tax-equivalent
   basis using a tax rate of 34%.
</TABLE>
                                       22
<PAGE>
<TABLE>
<CAPTION>
Table 10: Interest Expense and Expense Volume and Rate Analysis
Three months ended March 31, 2004

                                             2004 compared to 2003
(dollars in thousands)                  increase (decrease) due to (1)
                                         Volume      Rate          Net
<S>                                      <C>        <C>          <C>
Interest earned on:
   Loans (2)                             $871       $(711)       $160
   Taxable securities                    (110)        (44)       (154)
   Tax-exempt securities (2)               48         (18)         30
   FHLB stock                               3           1           4
   Other interest income                  (15)         (2)        (17)

Total                                     797        (774)         23

Interest paid on:
   Savings and demand deposits             24          (1)         23
   Money market deposits                   (9)        (21)        (30)
   Time deposits                           76        (290)       (214)
   FHLB borrowings                        116        (158)        (42)
   Other borrowings                        51         (19)         32

Total                                     258        (489)       (231)

Net interest earnings                    $539       $(285)       $254
<FN>
(1) The change in interest due to both rate and volume has been allocated to
    volume and rate changes in proportion to the relationship of the absolute
    dollar amounts of the change in each.
(2) The yield on tax-exempt loans and investment securities has been adjusted
    to its fully taxable equivalent using a 34% tax rate.
</TABLE>
PROVISION FOR LOAN LOSSES

Management determines the adequacy of the provision for loan losses based on
past loan experience, current economic conditions, and composition of the loan
portfolio.  Accordingly, the amount charged to expense is based on management's
evaluation of the loan portfolio.  It is PSB's policy that when available
information confirms that specific loans and leases, or portions thereof,
including impaired loans, are uncollectible, these amounts are promptly charged
off against the allowance.  The provision for loan losses was $240 for the
three months ended March 31, 2004, and $225 for the three months ended March
31, 2003.  Net charge-offs as a percentage of average loans outstanding were
..02% and .03% during the three months ended March 31, 2004 and 2003,
respectively.

Nonperforming loans are reviewed to determine exposure for potential loss
within each loan category.  The adequacy of the allowance for loan losses is
assessed based on credit quality and other pertinent loan portfolio
information.  The adequacy of the allowance and the provision for
                                       23
loan losses is consistent with the composition of the loan portfolio and recent
credit quality history.
<PAGE>
NONINTEREST INCOME

Noninterest income fell sharply by $382 in the first quarter 2004 to $740
compared to $1,122 in 2003.  The decline was due to $468 less in mortgage
banking income compared to last year.  However, this decline was partially
offset by a $111 gain on sale of securities. Separate from these items,
noninterest income declined $25 (5.1%).  Mortgage banking results during March
2004 included an additional provision for valuation allowance of $60 against
mortgage servicing rights.  The total valuation allowance on servicing rights
was $150 as of March 31, 2004.  As mortgage interest rates increase, this
valuation allowance is expected to be taken back into income as customers are
less likely to refinance their existing mortgages.  For all of 2004, PSB
expects mortgage banking income to be approximately 2/3 of the level seen
during 2003.  PSB serviced $155,606 of mortgage principal for other investors
at March 31, 2004 compared to $118,710 at March 31, 2003.
<TABLE>
<CAPTION>
Table 11: Mortgage Servicing Rights Activity
Three months ended March 31, 2004

                                           Originated   Valuation
(dollars in thousands)                        MSR      Allowance     Total
<S>                                         <C>         <C>         <C>
January 1, 2004 balances                    $904        $(90)       $814

Originated servicing                          58                      58
Amortization charged to earnings             (59)                    (59)
Valuation adjustment charged to earnings                 (60)        (60)

March 31, 2004 balances                     $903       $(150)       $753
</TABLE>
As a FHLB Mortgage Partnership Finance loan servicer, PSB has provided a credit
enhancement guarantee to reimburse the FHLB for foreclosure losses in excess of
1% of the original loan principal sold to the FHLB on an aggregate pool basis.
At March 31, 2004, the maximum Company obligation on the entire servicing
portfolio for such guarantees would be approximately $601 (.39% of the serviced
principal) up from $335 (.28% of the serviced principal) at March 31, 2003.
Due to historical strength of mortgage borrowers in our markets, the original
1% of principal loss pool provided by the FHLB, and current economic
conditions, management believes the possibility of losses under guarantees to
the FHLB to be remote. Accordingly, no provision for a recourse liability has
been made for this recourse obligation on loans currently serviced by PSB.

Peoples  Insurance  Services  LLC, a commercial property and casualty insurance
agency and brokerage owned by Peoples,  continues to build relationships in the
Wausau area.  The agency's net loss during  the  quarter  ended  March 2004 was
$38.  Since opening during September 2003, cumulative net losses have  been  in
line with initial projections.
                                       24
NONINTEREST EXPENSE

Noninterest operating expenses increased $285 to $2,602 in the quarter ended
March 2004 compared to $2,317 during the quarter ended March 2003, an increase
of 12.3%.  Increases in employee salaries and benefits totaled $100 during the
quarter, up 6.9% from the prior year.  Company employees were granted
inflationary and merit increases effective January 1, 2004 averaging 2.9% of
<PAGE>
base pay.  Other noninterest expenses included $127 of collection fees written
off in response to regulatory requirements to account for collection fees as
expense until collected, despite PSB's expectation that these fees will be
collected from the borrower in the future as part of the loan agreement or from
SBA loan guarantee reimbursements.  Separate from increases in salaries and
benefits and write-off of these collection expenses, operating expenses
increased $58 (6.7%).  Operating expenses as a percent of average assets were
2.56% during the first quarter of March 2004 compared to 2.57% during the first
quarter of March 2003.  The expense efficiency ratio increased to 59.73% during
2004 compared to 51.67% in 2003 due primarily to a lower net interest margin
and significantly lower mortgage banking fee income compared to the prior year.

The principal subsidiary of PSB is being audited by the Wisconsin Department of
Revenue with respect to income attributable to the bank's Nevada subsidiary.
Please see Note 7, Contingencies, for a discussion of the status and possible
material adverse effect of an adverse result of the audit.
                                       25
ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material change in the information provided in response to
Item 7A of PSB's Form 10-K for the year ended December 31, 2003.

ITEM 4.     INTERNAL CONTROLS AND PROCEDURES

As of the end of the period covered by this report, management, under the
supervision, and with the participation, of PSB's President and Chief Executive
Officer and the Chief Financial Officer, evaluated the effectiveness of the
design and operation of PSB's disclosure controls and procedures pursuant to
Rule 13a-15(c) under the Securities Exchange Act of 1934.  Based upon, and as
of the date of such evaluation, the President and Chief Executive Officer and
the Chief Financial Officer concluded that PSB's disclosure controls and
procedures were effective in all material respects.  There have been no
significant changes in PSB's internal controls or in other factors during the
period covered by this report which could significantly affect internal
controls, nor were there any significant deficiencies or material weaknesses
identified which required any corrective action to be taken.
                                       26

                          PART II - OTHER INFORMATION

ITEM 2.     CHANGES IN SECURITIES AND USE OF PROCEEDS

On February 9, 2004, PSB distributed 232 shares of its common stock (valued for
this purpose at $33.62 per share) to its directors in lieu of cash payments
under the director's incentive compensation plan.  Receipt of stock or deferral
of value into the director deferred compensation plan via a previously
committed election was mandatory and no investment decision was made by any
member of the Board.
<PAGE>
ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K:

(a)   Exhibits.

      Exhibits required by Item 601 of Regulation S-K.

      Exhibit
      Number                        Description

      31.1  Certification of CEO under Section 302 of Sarbanes-Oxley Act of
            2002
      31.2  Certification of CFO under Section 302 of Sarbanes-Oxley Act of
            2002
      32.1  Certifications under Section 906 of Sarbanes-Oxley Act of 2002

(b)   Reports on Form 8-K:

      Form 8-K dated January 29, 2004.  PSB filed a current report on Form 8-K
on January 29, 2004, reporting earnings for the fourth quarter and fiscal year
ended December 31, 2003, under Item 5 and additional related disclosure under
Items 9 and 12.
                                       27
                                  SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.




                                    PSB HOLDINGS, INC.



May 14, 2004                        SCOTT M. CATTANACH
                                    Scott M. Cattanach
                                    Treasurer

                                    (On behalf of the Registrant and as
                                    Principal Financial Officer)
                                       28
<PAGE>
                                 EXHIBIT INDEX
                                      TO
                                   FORM 10-Q
                                      OF
                              PSB HOLDINGS, INC.
                 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2004
                 PURSUANT TO SECTION 102(D) OF REGULATION S-T
                        (17 C.F.R. (section)232.102(D))



The following exhibits are filed as part this report:

31.1  Certification of CEO under Section 302 of Sarbanes-Oxley Act of 2002
31.2  Certification of CFO under Section 302 of Sarbanes-Oxley Act of 2002
32.1  Certifications under Section 906 of Sarbanes-Oxley Act of 2002