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 JUNE 30, 1999

                                      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


 The number of common shares outstanding at June 30, 1999 was 883,235.
<PAGE>
                        PSB HOLDINGS, INC.


                             FORM 10-Q

                    QUARTER ENDED JUNE 30, 1999

                                                         PAGE NO.

 PART I.  FINANCIAL INFORMATION

     Item 1.  Financial Statements
               Consolidated Statements of
               Income, Six Months Ended and Three Months Ended
               June 30, 1999 (unaudited) and
               June 30, 1998 (unaudited)                        1

               Condensed Consolidated Balance
               Sheets June 30, 1999 (unaudited)
               and December 31, 1998 (derived from
               audited financial statements)                    2

               Condensed Consolidated Statements
               of Cash Flows Six Months Ended and Three Months Ended
               June 30, 1999 (unaudited)
               and June 30, 1998 (unaudited)                    3

               Notes to Condensed Consolidated
               Financial Statements                             4

     Item 2.  Management's Discussion and
               Analysis of Financial Condition
               and Results of Operations                        9

     Item 3.  Quantitative and Qualitative Disclosures About
               Market Risk                                     16

 PART II.  OTHER INFORMATION

     Item 1.  Legal Proceedings                                17
     Item 2.  Changes in Securities                            17
     Item 3.  Defaults Upon Senior Securities                  17
     Item 4.  Submission of Matters to Vote of Securities
              Holders                                          17
     Item 5.  Other Information                                18
     Item 6.  Exhibits and Reports on form 8-K                 18

                                      -i-
<PAGE>
                  PART I.  FINANCIAL INFORMATION

 ITEM 1.  FINANCIAL STATEMENTS
<TABLE>
                        PSB HOLDINGS, INC.
                 CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
 ($ thousands except share data -unaudited)     Six Months Ended       Three Months Ended
                                                    June 30,                June 30
<S>                                           <C>         <C>         <C>         <C>
 Interest Income                                1999        1998        1999        1998
   Interest and fees on loans                 $ 6,659     $ 6,722     $ 3,392     $ 3,405

   Interest on investment securities
      Taxable                                   1,412       1,139         701         556
      Tax-exempt                                  331         303         163         155
   Other interest income                           58         109          25          66
           Total interest income                8,460       8,273       4,281       4,182
 Interest Expense:
   Deposits                                     3,749       4,072       1,861       2,036
   Short-term borrowings                          256         266         175         138
   Long-term borrowings                           138           0          57           0
           Total interest expense               4,143       4,338       2,093       2,174

 Net interest income                            4,317       3,935       2,188       2,008

 Provisions for losses on loans                   150         150          75          75

 Net interest income after provision for
   loan losses                                  4,167       3,785       2,113       1,933

 Non-interest income:
   Service fees                                   305         290         152         159
   Gain on sale of loans                          169         161          78         106
   Net gain on sale of securities available
     for sale                                       0          36           0           0
   Other operating income                         249         206         166         109
           Total non-interest income              723         693         396         374
 Other Expenses
   Salaries and related benefits                1,610       1,864         852         818
   Net occupancy expense                          430         399         215         205
   Computer operations                             68          50          33          26
   Loss on uncollected items                       46           0           0           0
   Other operating expense                        737         684         364         324
           Total non-interest expenses          2,891       2,997       1,464       1,373

 Income before income taxes                     1,999       1,481       1,045         934

   Provision for income taxes                     642         453         323         296
 Net income                                   $ 1,357    $  1,028     $   722     $   638

 Income per share
        Basis:   Weighted Average of 883,235 shares in 1999 and 1998
  Basic and diluted earnings per share        $  1.54    $   1.16     $   .82    $    .72
</TABLE>
                                      -1-
<PAGE>
<TABLE>
                        PSB HOLDINGS, INC.
                    CONSOLIDATED BALANCE SHEETS
<CAPTION>
($ thousands)
                                                June 30,    December 31,
 ASSETS                                           1999*         1998*
<S>                                            <C>           <C>
 Cash and due from banks                       $   8,829     $  8,752
 Interest bearing deposits and money
   market funds                                      669          741
 Federal funds sold                                    0        3,934
 Investment securities -
   Held to maturity (fair values of $14,697
       and $14,346 respectively)                  14,838       14,068
    Available for sale (at fair value)            46,626       47,886
 Loans held for sale                                 237        3,120
 Loans receivable, net of allowance for
    loan losses of $2,082 and $1,947 in 1999 and
    1998, respectively                           164,944      148,582
 Accrued interest receivable                       1,722        1,725
 Premises and equipment                            3,874        3,886
 Other assets                                        944          797

 TOTAL ASSETS                                  $ 242,683     $233,491

 LIABILITIES

 Noninterest-bearing deposits                  $  30,460      $33,150
 Interest-bearing deposits                       166,933      166,650
      Total deposits                             197,393      199,800

 Short-term borrowings                            18,415        4,550
 Long-term borrowings                              4,230        6,000
 Other liabilities                                 1,672        2,585
      Total liabilities                          221,710      212,935

 STOCKHOLDERS' EQUITY

 Common stock - no-par value, with a stated
      value of $2 per share
      - 1,000,000 shares authorized
      - 902,425 shares issued                      1,805        1,805
 Additional paid-in capital                        7,159        7,159
 Retained earnings                                13,245       12,223
 Net unrealized gain (loss) on
    securities available for sale, net of tax       (433)         172
 Treasury stock, at cost - 19,190 shares            (803)        (803)
      Total stockholders' equity                  20,973       20,556

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $ 242,683     $233,491
<FN>
  *The consolidated balance sheet at June 30, 1999 is unaudited.   The
   December 31, 1998 consolidated balance sheet is derived from audited
   financial statements.
</TABLE>
                                      -2-
<PAGE>
<TABLE>
                        PSB HOLDINGS, INC.
               CONSOLIDATED STATEMENTS OF CASH FLOW
<CAPTION>
                                            Six Months Ended        Three Months Ended
                                                 June 30,               June 30,
 ($ thousands - unaudited)                   1999       1998         1999       1998
<S>                                      <C>        <C>          <C>       <C>
 Cash flows from operating activities:
   Net income                            $    1,357 $   1,028    $    722  $     638
   Provision for depreciation, and
       net amortization                         255       214         130        118
   Provisions for loan losses                   150       150          75         75
   Gain on sale of loans                       (169)     (161)        (78)      (106)
   Loss on uncollected items                     46         0           0          0
   Gain on sale of securities available
      for sale                                    0       (36)          0          0
   Gain on sale of other real estate            (21)      (20)        (21)       (20)
 Changes in operating assets and liabilities:
   Other assets                                 799       522         954        261
   Other liabilities                           (913)     (522)          0        245
 Net cash provided by operating activities    1,504     1,175       1,782      1,211

 Cash flows from investing activities:
   Proceeds from sale and maturities of:
      Held to maturity securities            1,903        731       1,088       466
      Available for sale securities          7,755     11,494       2,390     3,484
   Payment for purchase of:
      Held to maturity securities           (2,664)    (1,992)     (1,255)   (1,577)
      Available for sale securities         (7,993)   (10,360)     (3,836)   (4,961)
   Net change in loans                     (13,629)     1,648     (13,331)    3,553
   Net change in interest-bearing deposits      72       (230)        717       198
   Net change in federal funds sold          3,934     (7,079)          0    (3,374)
   Proceeds from sale of other real estate      66        356          66       356
   Capital expenditures                       (224)      (486)       (107)     (186)
 Net cash used in investing activities     (10,780)    (5,918)    (14,268)   (2,041)
 Cash flows from financing activities:
   Net change in deposits                   (2,407)       504       4,552       764
   Net change in short-term borrowings      13,865       (341)     10,662       (12)
   Net change in long-term borrowings       (1,770)     3,000      (1,770)        0
   Dividends paid                             (335)      (310)       (335)     (310)
    Net cash provided by financing
      activities                             9,353      2,853      13,109       442

 Net increase (decrease) in cash and
     cash equivalents                           77     (1,890)        623      (388)
 Cash and cash equivalents at
     beginning of period                     8,752     10,623       8,206     9,121
 Cash and cash equivalents at
     end of quarter                      $   8,829  $   8,733    $  8,829  $  8,733

 Supplemental Cash Flow Information:
   Cash paid during the period for :
      Interest                               4,143      4,339       2,093     2,175
      Income taxes                             647        402         580       402
</TABLE>
                                      -3-
<PAGE>
                        PSB HOLDINGS, INC.
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 1.  The accompanying financial statements in the opinion of management
     reflect all adjustments which are normal and recurring in nature and
     which are necessary for a fair statement of the results for the
     periods presented.  In all regards, the financial statements have
     been presented in accordance with generally accepted accounting
     principles.

 2.  Earnings per share of common stock is based on the weighted average
     number of common shares outstanding.

 3.  Refer to notes to the financial statements which appear in the 1998
     annual report for the company's accounting policies which are
     pertinent to these statements.

 4.  In June 1997, Statement of Financial Accounting Standards No. 130,
     "Reporting Comprehensive Income" (FASB 130), was issued and
     establishes standards for reporting and displaying comprehensive
     income and its components.  FASB 130 requires comprehensive income
     and its components, as recognized under the accounting standards, to
     be displayed in a financial statement with the same prominence as
     other financial statements.  The disclosure requirements of FASB 130
     with respect to the Form 10-Q have been included in the
     corporation's consolidated balance sheets.  Comprehensive income
     totaled the following for the periods indicated:
<TABLE>
<CAPTION>
                                  Six months ended    Three months ended
 ($ thousands)                    6/30/99  6/30/98    3/30/99  3/30/98
<S>                               <C>      <C>        <C>      <C>
 Net Income                       $ 1,357  $ 1,028    $   722  $   638
 Change in net unrealized gain
   or loss on securities available
   for sale, net of tax              (605)    (10)      (394)      (6)
 Comprehensive income             $   752  $ 1,018    $  328  $   632
</TABLE>
 In June 1998, the Financial Accounting Standards Board issued Statement
 of Financial Accounting Standards No. 133, "Accounting for Derivative
 Instruments and Hedging Activities" (FASB 133).  FASB 133 establishes
 new accounting and reporting requirements for derivative instruments,
 including certain derivative instruments embedded in other contracts and
 hedging activities.  The standard requires all derivatives to be
 measured at fair value and recognized as either assets or liabilities in
 the statement of condition.  Under certain conditions, a derivative may
 be specifically designated as a hedge.  Accounting for the changes in
 the fair value of a derivative depends on the intended use of the
 derivative and the resulting designation.  Adoption of the standard is
 required for the corporation's December 31, 2001 financial statements
 with early adoption allowed as of the beginning of any quarter after
 June 20, 1998.  Management is in the process of assessing the impact and
 period of adoption of the standard.  Adoption is not expected to result
 in material financial impact.

                                      -4-
<PAGE>
<TABLE>
 5.  Investment Securities

     The amortized cost and estimated fair value of investment securities
 are as follows:
<CAPTION>
                                                Gross        Gross      Estimated
                                 Amortized     Unrealized   Unrealized     Fair
 ($ thousands)                      COST         GAINS        LOSSES       VALUE

 JUNE 30, 1999
<S>                             <C>           <C>           <C>           <C>
 Securities held to maturity:
      Obligations of states and
      political subdivisions    $  14,838     $     79      $    221      $ 14,697

 Securities available for sale:
      U.S. Treasury securities
      and obligations of U.S.
      government corporations
      and agencies              $  45,339     $     56      $    747      $ 44,648

 Other equity securities            1,978                                    1,978

 Totals                         $  47,317     $     56      $    747      $ 46,626

 DECEMBER 31, 1998

 Securities held to maturity
     Obligations of states and
     political subdivisions     $  14,068     $    278     $    955      $  14,346

 Securities available for sale:
      U.S. Treasury securities
      and obligations of U.S.
      government corporations
      and agencies             $  46,920      $    342     $     77      $  47,185

 Other equity securities             701                                       701

 Totals                        $  47,621      $    342     $     77      $  47,886
</TABLE>
                                      -5-
<PAGE>
<TABLE>
 6.  Loans

     The composition of gross loans at June 30, 1999, and December 31,
 1998, follows:
<CAPTION>
                         June 30, 1999  % of total   December 31, 1998 % of total

     ($ Thousands)
     <S>                  <C>           <C>            <C>              <C>
     Commercial             46,087       27.59%          40,514          26.91%
     Real Estate           107,968       64.64%          98,260          65.28%
     Consumer               12,971        7.77%          11,755           7.81%

     Total                $167,026      100.00%        $150,529         100.00%
</TABLE>
     Gross loans outstanding increased 10.96% for the six months ended
     June 30, 1999; increasing to $167,027 at June 30, 1999 from $150,529
     at December 31, 1998.

     The Company's process for monitoring loan quality includes weekly
     analysis of 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 to 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 will continue within a reasonable time
     frame.

     A loan is considered impaired when, based on current information, it
     is probable that the bank will not collect all amounts due in
     accordance with the contractual terms of the loan agreement.
     Impairment is based on discounted cash flows of expected future
     payments using the loan's initial effective interest rate or the
     fair value of the collateral if the loan is collateral dependent.
     The decision of management to place loans in this category does not
     necessarily mean that the Company expects losses to occur but that
     management recognized that a higher degree of risk is associated
     with these loans.

     The aggregate amount of non-performing assets was $1,173 and $582 at
     June 30, 1999, and December 31, 1998, respectively.  Non-performing
     assets are those which 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.

                                      -6-
<PAGE>
<TABLE>
 The following table shows the amount of non-performing assets and other
 real estate owned as of the dates indicated.
<CAPTION>
 AGGREGATE AMOUNT OF NON-PERFORMING LOANS AND OTHER REAL ESTATE

                                  June 30,   % of total   December 31,   % of total
 ($ thousands)                      1999        LOANS         1998          LOANS
<S>                              <C>           <C>        <C>             <C>
 Loans on a non-accrual basis
   Real estate - mortgage        $   243        .14%      $    35           .02%
   Installment loans                  58        .03%           58           .04%
   Credit cards & related plans        0                        0
   Commercial & all other loans      872        .52%          489           .32%

 Total non-accrual               $ 1,173        .70%      $   582           .39%

 Loans contractually past due
    thirty through eighty-nine days
    and still accruing
   Real estate - mortgage        $   828        .50%      $   520         .35%
   Installment loans                 200        .12%          120         .08%
   Credit cards & related plans        0                        0
   Commercial & all other loans    1,095        .65%          704         .47%

 Total 30 - 89 days              $ 2,123       1.27%      $ 1,344         .89%

 Loans contractually past due
    ninety days or more as to
    interest or principal payments
   Real estate - mortgage        $     0                  $     0
   Installment loans                   0                        0
   Credit cards & related plans        0                        0
   Commercial & all other loans        0                        0

 Total over 90 days              $     0                  $     0

 Other real estate owned         $     0                  $     0
</TABLE>
                                      -7-
<PAGE>
<TABLE>
 SUMMARY OF LOAN LOSS EXPERIENCE

 The following table summarizes loan balances at the end of each period,
 changes in the allowance for loan losses arising from loans charged off
 and recoveries on loans previously charged off, by loan category and
 additions to the allowance which have been charged to expense.
<CAPTION>
                              Six Months Ended       Year Ended
 ($ thousands)                  JUNE 30, 1999     DECEMBER 31, 1998

<S>                              <C>                 <C>
 Allowance for loan losses at
   beginning of period           $   1,947           $   1,845

 Loans charged off
   Commercial & Industrial            (21)                (138)
   Agricultural                         0                    0
   Real Estate - Mortgage             (52)                   0
   Installment & Other
     Consumer Loans                   (11)                 (69)

   Total Charge Offs                  (84)                (207)

 Recoveries on loans previously
   charged off
   Commercial & Industrial             62                    0
   Agricultural                         0                    0
   Real Estate - Mortgage               3                    0
   Installment & Other
     Consumer Loans                     4                    9

   Total Recoveries                    69                    9

 Net loans charged off                (15)                (198)

 Additions charged to operations      150                  300

 Allowance for loan losses
   at end of period              $  2,082            $   1,947
</TABLE>
                                      -8-

 ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS
          (All $ amounts are in thousands, except per share amounts)

 This discussion will focus on information about the Company's financial
 condition and results of operations that are not otherwise apparent from
 the consolidated financial statements included in this report.
 Reference should be made to those statements presented elsewhere in this
 report for an understanding of the following discussion and analysis.

<PAGE>
 This report contains certain of management's expectations and other
 forward-looking information regarding the Company.  While the Company
 believes that 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 these contemplated
 in this report.  A more comprehensive discussion of the risks and
 uncertainties which could cause actual results to be materially
 different from such expectations are set forth in Part I of the
 Company's Annual Report of Form 10-K for the year ended December 31,
 1998 under the heading "Cautionary Statement Regarding Forward Looking
 Information."

 BALANCE SHEET

 During the first six months of 1999, total assets increased by $9.2
 million.  Fed funds sold and investments decreased $4.4 million.  The
 decrease was mainly due to the $3.9 decrease in fed funds sold.  Total
 loans increased $13.6 million.  The majority of the increase in the loan
 portfolio was from real estate loans.  Real estate loans increased $9.7
 million and commerical loans increased $5.6 million.  Total deposits
 decreased $2.4 million.  Short term borrowings increased $13.9 million.
 Within short term borrowings, fed funds purchased increased $10.3
 million and repurchase agreements increased $3.5 million.

 LIQUIDITY

 Liquidity refers to the ability of the Company to generate adequate
 amounts of cash to meet the Company's need for cash.  The Company
 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.  The primary sources of the
 Company's liquidity are marketable assets maturing within one year.  At
 June 30, 1999, the carrying value of debt securities maturing within one
 year amounted to $4,565 or 7.43% of the total debt securities portfolio.
 The Company attempts, when possible, to match relative maturities of
 assets and liabilities, while maintaining the desired net interest
 margin.

 Marketable assets maturing within one year will continue to be the
 primary source of liquidity along with stable earnings, and strong
 capital position.

                                     -9-

 CAPITAL RESOURCES

 Stockholders' equity at June 30, 1999 increased $417, or 2.03% since
 December 31, 1998.  This net increase was composed of: net income for
 the first six months of $1,357, a cash dividend of $335 and a decrease
 in the "Net unrealized gain on securities available for sale" of $605.
 Equity to assets at June 30, 1999 was 8.64%.

 Cash dividends of $0.38 per share were declared in the first half of
 1999, representing a payout ratio of 24.73% for the period.
<PAGE>
 The adequacy of the Company'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 June 30, 1999, the
 Company's tier 1 risk-based capital ratio, total risk-based capital, and
 tier 1 leverage ratio were well in excess of regulatory minimums.

 RESULTS OF OPERATIONS

 Net income for the six months ended June 30, 1999, totaled $1,358, an
 increase of $330 over the $1,028 earned during the same period of 1998.
 Earnings per share were $1.54 for the six months ended June 30, 1999 and
 $0.82 for the same period in 1998.  Cash dividends declared were $0.38
 per share in June 1999 and $.35 per share in June 1998.

 Return on average common stockholders' equity amounted to 13.07% for the
 six months ended June 30, 1999; compared to 10.63% for the six months
 ended June 30, 1998.

 Return on average assets for the six months ended June 30, 1999 amounted
 to 1.17%; compared to .95 for the six months ended June 30, 1998.

 NET INTEREST INCOME

 Net interest income is the most significant component of earnings.  For
 analysis purposes, interest earned on tax exempt assets is adjusted to a
 fully taxable equivalent basis.

 Average earning assets grew $10.0 million in the first half of 1999.
 The annualized net interest margin for the first half of 1999 was 3.97%,
 or 9 basis points less than the 4.06% margin in the first half of 1998.
 The interest rate spread also decreased, to 3.16% from 3.23% reported
 for June 30, 1998.

 The Company's net interest income was impacted by the interest rate
 environment encountered in the first half of 1999 as compared to 1998.
 The lower rate enviroment dropped our yields on earning assets to 7.70%
 compared to 8.10% in 1998.  However, our costs for interest bearing
 deposits also dropped to 4.64% from 5.16%.

                                      -10-

 PROVISION FOR CREDIT LOSSES

 Management determines the adequacy of the allowance for credit losses
 based on past loan experience, current economic conditions, composition
 of the loan portfolio, and the potential for future loss.  Accordingly,
 the amount charged to expense is based on management's evaluation of the
 loan portfolio.  It is the Company'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 credit
 losses was $150 for the six months ended June 30, 1999 and $150 for the
 six months ended June 30, 1998.  The allowance for credit losses as a
 percentage of gross loans outstanding was $2,082 or 1.25% of total loans
 on June 30, 1999, compared to $1,947 or 1.29% of total loans on December
 31, 1998.  Net charge-offs as a percentage of average loans outstanding
<PAGE>
 were .01% during the six months ended June 30, 1999 and .02% during the
 first six months of 1998.

 Non-performing loans are reviewed to determine exposure for potential
 loss within each loan category.  The adequacy of the allowance for
 credit losses is assessed based on credit quality and other pertinent
 loan portfolio information.  The adequacy of the reserve and the
 provision for credit losses is consistent with the composition of the
 loan portfolio and recent credit quality history.

 NON-INTEREST INCOME

 Non-interest income increased 4.12% to $723 during the six months ended
 June 30, 1999, from $694 during the six months ended June 30, 1998.
 There were no gains or losses on securities during the six months ended
 June 30, 1999.  Fee income on deposit accounts increased $15 to $305
 during the six months ended June 30, 1999, from $290 during the six
 months ended June 30, 1998.  Other fee income and fiduciary fees
 increased $39 to $61 for the six months ended June 30, 1999 from $23 for
 the six months ended June 30, 1998.  Other operations income decreased
 $4 during the six months ended June 30, 1999 from the six months ended
 June 30, 1998.

 NON-INTEREST EXPENSE

 Non-interest expenses decreased 3.81% to $2,890 for the six months ended
 June 30, 1999, from $2,998 for the six months ended June 30, 1998.  In
 1998 an additional Pension plan expense of $402 from the termination of
 our Defined Benefit Pension Plan was recorded.  The Company is expanding
 the use of technology throughout its banks in order to provide increased
 customer service and allow for more efficient consolidation of its
 operational areas.  The Company has placed emphasis on increased
 productivity and standardization of programs and procedures throughout
 all of its locations.

                                      -11-
<PAGE>
<TABLE>
<CAPTION>
                       KEY OPERATING RATIOS
                  (unaudited) Ended June 30, 1999
                                         SIX MONTH PERIOD     THREE MONTH PERIOD
                                          1999      1998        1999     1998
<S>                                      <C>       <C>         <C>      <C>
 Return on assets (net income divided
 by average assets) (1)                   1.17%      .95%       1.22%    1.17%

 Return on Average Equity (net income
 divided by average equity) (1)          13.07%    10.63%      13.77%    2.93%

 Average Equity to Average Assets         8.95%     8.93%       8.90%    9.06%

 Interest Rate Spread (difference between
 average yield on interest earning assets
 and average cost of interest bearing
 liabilities) (1)                         3.16%     3.23%       3.17%    3.31%

 Net Interest Margin (net interest
 income as a percentage of average
 interest earning assets) (1)             3.97%     4.06%       3.97%    4.16%

 Non-interest Expense to average
 assets (1)                               2.54%     2.72%       2.56%    2.52%

 Allowance for loan losses to total loans
 at end of period                         1.25%     1.33%       1.25%    1.33%
<FN>
 (1) Annualized
</TABLE>
                                      -12-
<PAGE>
<TABLE>
                        SELECTED FINANCIAL DATA

 The following table presents consolidated financial data of PSB
 Holdings, Inc. and Subsidiary.
<CAPTION>
                                                                 1999
                                                    Second                 First
                                                    QUARTER               QUARTER

 (Dollars in thousands, except per share amounts)
 <S>                                              <C>                    <C>
 FINANCIAL HIGHLIGHTS:
 Earnings and Dividends:
 Net interest revenue                             $  2,188               $  2,129
 Provision for credit losses                            75                     75
 Other noninterest income                              396                    327
 Other noninterest expense                           1,464                  1,427
 Net income                                            722                    635
 Per common share
   Basic and diluted earnings                          .82                    .72
   Dividends declared                                  .38                      0
   Book value                                        23.75                  23.75
 Average common shares (000's)                         883                    883
 Dividend payout ratio                               24.73%                     0
 Balance Sheet Summary:
   Loans net of unearned income                    165,181                152,017
   Assets                                          242,683                229,246
   Deposits                                        197,393                192,841
   Shareholders equity                              20,973                 20,980
 Average balances:
   Loans net of unearned income                    165,307                151,652
   Assets                                          241,987                227,383
   Deposits                                        197,866                192,462
   Shareholders equity                              21,017                 20,641
 Performance Ratios:
 Return of average assets                             1.19%                  1.11%
 Return of average common equity                     13.77%                 12.36%
 Tangible Equity to assets                            8.82%                  9.01%
 Net loan charge-offs as a percentage
   of average loans                                    .01%                   .05%
 Nonperforming assets as a percentage
   of average loans                                    .71%                   .20%
 Net interest margin                                  3.97%                  3.97%
 Efficiency ratio                                    55.69%                 55.42%
 Liquidity ratio                                     28.89%                 33.18%
 Fee revenue as a percentage of
   average assets                                      .16%                   .14%
</TABLE>
                                      -13-
<PAGE>
 YEAR 2000 DISCLOSURE

 YEAR 2000
 The Company, like virtually all other financial institutions in the
 United States, depends on computer technology to process its various
 deposit, loan and investment transactions on a daily basis.  Management
 has initiated a plan to review and address the potential for failure of
 computer applications as a result of the failure of software program to
 properly recognize the Year 2000 (the "Year 2000 problem" or "Year 2000
 issues").  The term "Year 2000 readiness," or terms of similar import,
 mean that the particular software or equipment referred to has been
 modified or replaced and the Company believes that such modified or
 replaced equipment or processes will operate as designed after 1999
 without Year 2000 problems.

 The Company assessment of, and corrective actions with respect to, the
 possible consequences of Year 2000 issues on its consolidated financial
 condition, liquidity or results of operations is referred to herein as
 its "Year 2000 Project."  The Year 2000 Project is under the supervision
 of the Year 2000 Project Committee (the "Committee"), composed of
 employees of the Company's wholly-owned subsidiary, Peoples State Bank
 (the "Bank").  The Committee reports on a regular basis to the Board of
 Directors as to the status of Year 2000 issues and the Company's
 progress in addressing and/or resolving identified Year 2000 problems.

 In accordance with the Year 2000 Project and Year 2000 Compliance Policy
 adopted by the Committee, an assessment of software and equipment to
 determine which major computer components will need to be updated or
 replaced has been completed.  The Company has undertaken software and
 equipment upgrades, including the bank's mainframe computer, and will
 continue to monitor vendor certifications as to Year 2000 compliance.
 All systems are either Year 2000 compliant or will function, for the
 Company's purposes, even if not fully Year 2000 compliant.  Testing has
 been conducted on all major mission critical systems and all such
 systems appear to be Year 2000 ready.  Testing will continue through the
 year 2000 on software and equipment upgrades and modifications.

 The Year 2000 Project also involves gathering data from Bank customers
 to assist the Committee in determining the level of risk to the Bank
 which might be expected as a result of Year 2000 noncompliance.  Bank
 operations, such as commercial loan application procedures, have been
 modified to address the Year 2000 issue.  The Bank has also attempted to
 educate its customer base about the Year 2000 issue and has attempted to
 identify major employers in the Bank's primary market area to evaluate
 potential loss to the Bank's business if those employers' operations
 would be curtailed or cease due to Year 2000 problems.  Inquiries have
 also been made to the Bank's investment subsidiary service provider and
 correspondent banks to determine the effect of such entities' compliance
 with Year 2000 issues.

 The Committee has determined that it does not have non-information
 technology systems, such as embedded controllers, which are material to

                                      -14-
<PAGE>
 the operations of the Company and that all security and building
 operations systems can be operated manually or with alternative controls
 should a Year 2000 problem occur.

 COSTS
 Costs on new software or equipment will be capitalized over the useful
 life.  All other costs associated with Year 2000 issues are expensed as
 incurred.  Internal costs of Year 2000 readiness are not being tracked,
 but principally relate to payroll costs of Company personnel.  The
 estimated total cost of evaluation and compliance with Year 2000 issues
 is not expected to exceed $150,000 and, in any event, is not expected to
 be material to the Company.

 RISKS
 The Company does not believe that Year 2000 issues will have a material
 adverse effect on its consolidated financial condition, liquidity or
 results of operations.  There are, however, many risks associated with
 Year 2000 that are beyond the control of the Company or which may not be
 adequately addressed by others before material problems are encountered.

 The Company, like other financial institutions, depends upon the Federal
 Reserve System and other financial institutions to process a wide
 variety of financial transactions for itself and its customers and as a
 source of credit.  The Company must rely upon various federal bank
 regulatory agencies to make certain the U.S. banking and payments
 system, as a whole is Year 2000 compliant.  While the Company believes
 that the banking system as a whole will be Year 2000 compliant, and it
 has inquired into the readiness of its principal correspondents and
 service providers, there can be no assurance of that fact or that one or
 more of them will not encounter significant Year 2000 problems and
 thereby adversely affect the Company.  Similarly, while the Company
 faces potential disruptions in its operations from Year 2000 problems as
 a result of the failure of the power grid, telecommunications, or other
 utilities, it is not aware that any material disruption in these
 infrastructures is reasonable likely to occur.

 The Bank has a diverse customer base.  Based on this diversity and the
 information received by the Bank to date in response to its customer
 surveys and other inquiries, the Company believes that its customers as
 a whole will not incur material adverse results from Year 2000 related
 issues to the extent that the Bank would, in turn, incur material
 defaults in its loan portfolio.  Nevertheless, there is a risk which
 cannot be wholly discounted that Year 2000 problems encountered by its
 customers may result in significant losses to the Company as a result of
 the inability of certain customers to repay loans or as a result of
 reducing the nonloan portion of its customers' banking business.

 To the extent the Company incurs losses arising from Year 2000 issues,
 it may also have insurance coverage.  The scope and amount of
 reimbursement for such losses will depend upon the nature of any claims
 which arise.

                                      -15-
<PAGE>
 CONTINGENCY PLAN
 The Committee has prepared a business resumption contingency plan which
 will be implemented, in part, in conjunction with the Bank's disaster
 recovery plan in the event of failure of one or more of the Bank's major
 systems.  The business resumption contingency plan involves the
 identification by the Committee of core business processes,
 establishment of event time lines, and preparation of a risk analysis of
 mission critical systems.  Work on the business contingency readiness
 was completed during the second quarter of 1999.

 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 the Company's Form 10-K for the year ended
 December 31, 1998.

                                      -16-

                    PART II - OTHER INFORMATION

 ITEM 1.  LEGAL PROCEEDINGS

 Not Applicable

 ITEM 2.  CHANGES IN SECURITIES

 Not Applicable

 ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

 Not Applicable
<PAGE>
<TABLE>
 ITEM 4.  SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS

     The annual meeting of shareholders of the Company was held on April
 20, 1999.  The matters voted upon, including the number of votes cast
 for, against or withheld, as well as the number of abstentions and
 broker non-votes, as to each such matter were as follows:
<CAPTION>
     MATTER                                               SHARES

                                                                            Broker
                                For     Withheld     Against    Abstain    Non-Vote

 Election of Directors
<S>                          <C>          <C>          <C>        <C>         <C>
 (a)  Leonard C. Britten     549,494      1,656        N/A        N/A         0

 (b)  Gordon P. Connor       551,150                   N/A        N/A         0

 (c)  Patrick L. Crooks      551,119         31        N/A        N/A         0

 (d)  William J. Fish        551,150                   N/A        N/A         0

 (e)  George L. Geisler      549,244      1,906        N/A        N/A         0

 (f)  Charles A. Ghidorzi    544,905      6,245        N/A        N/A         0

 (g)  Gordon P. Gullickson   550,865        285        N/A        N/A         0

 (h)  Lawrence Hanz, Jr.     550,750        400        N/A        N/A         0

 (i)  Thomas R. Polzer       551,060         90        N/A        N/A         0

 (j)  William M. Reif        551,150                   N/A        N/A         0

                                      -17-

 (k)  Thomas A. Riiser       551,150          0        N/A        N/A         0

 (l)  Eugene Witter          550,805        345        N/A        N/A         0
</TABLE>
 ITEM 5.  OTHER INFORMATION

 Not Applicable

 ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K:

 The following exhibits required by Item 601 of Regulation S-K are filed
 with the Securities and Exchange Commission as part of this report.

     Exhibit
     NUMBER                        DESCRIPTION

     3.1  Restated Articles of Incorporation, as amended (incorporated by
          reference to Exhibit 4(a) to the Company's Current Report on
          Form 8-K dated May 30, 1995)
<PAGE>
     3.2  Bylaws (incorporated by reference to Exhibit 4(b) to the
          Company's Current Report on Form 8-K dated May 30, 1995)

     4.1  Articles of Incorporation and Bylaws (see Exhibits 3.1 and 3.2)

     10.1 Bonus Plan of Directors of the Bank (incorporated by reference
          to Exhibit 10(a) to the Company's Annual Report on Form 10-K
          for the fiscal year ended December 31, 1995)*

     10.2 Bonus Plan of Officers and Employees of the Bank* (incorporated
          by reference to Exhibit 10(b) to the Company's Annual Report on
          Form 10-K for the fiscal year ended December 31, 1995)*

     10.3 Non-Qualified Retirement Plan for Directors of the Bank
          (incorporated by reference  to Exhibit 10(c) to the Company's
          Annual Report on Form 10-K for the fiscal year ended December
          31, 1995)*

     21.1 Subsidiaries of the Company (incorporated by reference to
          Exhibit 22 to the Company's Annual Report on Form 10-K for the
          fiscal year ended December 31, 1995)

     27.1 Financial Data Schedule (electronic filing only)

          *Denotes Executive Compensation Plans and Arrangements

                                      -18-

 (b)  Reports on Form 8-K:
      None.

                                      -19-

                            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.



 August 13, 1999              TODD R. TOPPEN
                              Todd R. Toppen
                              Secretary and Controller

                              (On behalf of the Registrant and as
                              Principal Financial Officer)

                                      -20-
<PAGE>
                          EXHIBIT INDEX<dagger>
                                TO
                             FORM 10-Q
                                OF
                        PSB HOLDINGS, INC.
           FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1999
           Pursuant to Section 102(d) of Regulation S-T
                  (17 C.F.R. Section 232.102(d))


 EXHIBIT 27 - FINANCIAL DATA SCHEDULE


     <dagger> Exhibits required by Item 601 of Regulation S-K which have
     been previously filed and are incorporated by reference are set
     forth in Item 6 of the Form 10-Q to which this Exhibit Index
     relates.

                                      -21-