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 SEPTEMBER 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:

                              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 September 30, 1999 was 883,235.
<PAGE>

                        PSB HOLDINGS, INC.

                             FORM 10-Q

                 QUARTER ENDED SEPTEMBER 30, 1999


                                                         PAGE NO.


 PART I.  FINANCIAL INFORMATION


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

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

 Condensed Consolidated Statements
 of Cash Flows Nine Months Ended and Three Months Ended
 September 30, 1999 (unaudited)
 and September 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                                   5


 PART II.  OTHER INFORMATION

 Item 1.  Legal Proceedings                                 10

 Item 2.  Changes in Securities                             10
 Item 3.  Defaults Upon Senior Securities                   10
 Item 4.  Submission of Matters to Vote of
          Securities Holders                                10
 Item 5.  Other Information                                 10
 Item 6.  Exhibits and Reports on form 8-K                  11

                                   -1-
<PAGE>
                  PART I.  FINANCIAL INFORMATION

 ITEM 1.  FINANCIAL STATEMENTS
<TABLE>
                        PSB HOLDINGS, INC.
                 CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
 ($ thousands except
 share data -unaudited)               Nine Months Ended        Three Months Ended
                                         September 30,             September 30
 <S>                                <C>         <C>            <C>        <C>
 Interest income                      1999        1998           1999       1998
   Interest and fees on loans       $10,261     $10,107        $ 3,602    $ 3,386
   Interest on investment securities
      Taxable                         2,113       1,727            701        605
      Tax-exempt                        493         466            162        163
   Other interest income                140         225             82         98
 Total interest income               13,007      12,525          4,547      4,252

 Interest expense:
   Deposits                           5,659       6,130          1,910      2,058
   Short-term borrowings                447         413            191        147
   Long-term borrowings                 245          -0-           107         -0-
 Total interest expense               6,351       6,543          2,208      2,205

 Net interest income                  6,656       5,982          2,339      2,047

 Provision for losses on loans          255         225            105         75

 Net interest income after
 provision for loan losses            6,401       5,757          2,234      1,972
 Non-interest income:
   Service fees                         474         470            169        180
  Gain on sale of loans                 206         235             37         73
   Net gain on sale of
   securities available for sale         -0-         36             -0-        -0-
   Other operating income               328         330             79        124
 Total non-interest income            1,008       1,071            285        377
 Non-interest expenses
   Salaries and related benefits      2,375       2,560            765        696
   Net occupancy expense                635         614            205        209
   Computer operations                   99          78             31         28
    Other operating expense           1,161       1,024            378        345
 Total non-interest expenses          4,270       4,276          1,379      1,278

 Income before income taxes           3,139       2,552          1,140      1,071
   Provision for income taxes         1,023         805            381        352
 Net income                         $ 2,116     $ 1,747        $   759    $   719

 Income per share
        Basis:   Weighted Average of 883,235 shares in 1999 and 1998

 Basic and diluted earnings per
  share                             $  2.40     $  1.98        $   .86    $   .81
</TABLE>
                                      -2-
<PAGE>
<TABLE>
                          PSB HOLDINGS, INC.
                      CONSOLIDATED BALANCE SHEETS
<CAPTION>
 ($ thousands)
                                                     September 30,   December 31,
 ASSETS                                                  1999*          1998*
<S>                                                 <C>            <C>
 Cash and due from banks                            $   10,356     $   8,752
 Interest bearing deposits and money market funds        1,431           741
 Federal funds sold                                         -0-        3,934
 Investment securities -
   Held to maturity (fair values of $14,333
       and $14,346 respectively)                        14,568        14,068
    Available for sale (at fair value)                  44,442        47,886
 Loans held for sale                                       389         3,120
 Loans receivable, net of allowance for loans
      losses of $2,177 and $1,947 in 1999
      and 1998, respectively                          170,159       148,582
 Accrued interest receivable                            2,015         1,725
 Premises and equipment                                 3,849         3,886
 Other assets                                           1,014           797

 TOTAL ASSETS                                       $ 248,223      $233,491

 LIABILITIES

 Noninterest-bearing deposits                       $ 33,214       $ 33,150
 Interest-bearing deposits                           172,531        166,650
 Total deposits                                      205,745        199,800

 Short-term borrowings                                10,592          4,550
 Long-term borrowings                                  9,000          6,000
 Other liabilities                                     1,338          2,585
 Total liabilities                                   226,675        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                                    14,004         12,223
 Net unrealized gain (loss) on securities available
    for sale, net of tax                                (617)           172
 Treasury stock, at cost - 19,190 shares                (803)          (803)
 Total stockholders' equity                           21,548         20,556

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $248,223       $233,491
<FN>
 *The consolidated balance sheet at September 30, 1999 is unaudited.  The
 December 31, 1998 consolidated balance sheet is derived from audited financial
 statements.
</TABLE>
                                    -3-
<PAGE>
<TABLE>
                        PSB HOLDINGS, INC.
               CONSOLIDATED STATEMENTS OF CASH FLOW
<CAPTION>
                                                  Nine Months Ended     Three Months Ended
                                                     September 30,         September 30,
 ($ thousands - unaudited)                         1999        1998      1999       1998
<S>                                              <C>        <C>       <C>        <C>
 Cash flows from operating activities:
   Net income                                    $ 2,116    $ 1,747   $   759    $   719
   Provision for depreciation, and
       net amortization                              338        341       83         127
   Provisions for loan losses                        255        225      105         75
     Gain on sale of loans                          (206)      (235)     (37)       (73)
     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)       0          0
  Changes in operating assets and liabilities:
     Other assets                                   (508)       264   (1,307)      (258)
     Other liabilities                            (1,247)      (446)    (334)        75
 Net cash provided by (used in)
   operating activities                              773      1,840     (731)       665

 Cash flows from investing activities:
   Proceeds from sale and maturities of:
     Held to maturity securities                   2,171        931      268        200
     Available for sale securities                 9,265     12,168    1,510        674
   Payment for purchase of
 Held to maturity securities                      (2,664)    (2,465)       0       (473)
     Available for sale securities                (7,880)   (16,338)  (1,117)    (5,978)
   Net change in loans                           (19,101)      (425)  (5,472)    (2,073)
   Net change in interest-bearing deposits           690        153      618        383
   Net change in federal funds sold                3,934     (1,484)       0      5,595
   Proceeds from sale of other real estate            66        157        0       (199)
   Capital expenditures                             (302)      (550)     (77)       (64)
 Net cash used in investing activities           (13,821)    (7,853)  (4,270)    (1,935)

 Cash flows from financing activities:
   Net change in deposits                          5,945      2,132     8,351     1,627
   Net change in short-term borrowings             6,042       (517)   (7,823)     (175)
   Net change in long-term borrowings              3,000      3,000     6,000         0
   Dividends paid                                   (335)      (310)        0         0
 Net cash provided by financing activities        14,652      4,305     6,528     1,452
 Net increase (decrease) in cash and cash
   equivalents                                     1,604     (1,708)    1,527       182
 Cash and cash equivalents at beginning of period  8,752     10,623     8,829     8,733
 Cash and cash equivalents at end of quarter     $10,356    $ 8,915   $10,356    $8,915

 Supplemental Cash Flow Information:
   Cash paid during the period for :
      Interest                                     6,351      6,543     2,208     2,204
               Income taxes                        1,067        775       420       373
</TABLE>
                                      -4-
<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>
                                  Nine months ended    Three months ended
 ($ thousands)                   9/30/99    9/30/98    9/30/99   9/30/98
<S>                              <C>       <C>         <C>        <C>
 Net Income                      $ 2,116   $ 1,747     $   759    $   719
 Change in net unrealized
    gain or loss on securities
    available for sale, net
    of tax                          (789)      168        (184)       178
 Comprehensive income            $ 1,327   $ 1,915     $   575    $   897
</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 30, 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.

                                    -5-
<PAGE>
 5.  Investment Securities
<TABLE>
 The amortized cost and estimated fair value of investment securities are
 as follows:
<CAPTION>
                                                                 Gross     Estimated
                                Amortized      Unrealized     Unrealized      Fair
 ($ thousands)                    COST            GAINS         LOSSES       VALUE

 SEPTEMBER 30, 1999
<S>                              <C>            <C>            <C>          <C>
 Securities held to maturity:
      Obligations of states and
       political subdivisions    $ 14,568       $    46        $    281     $ 14,333

 Securities available for sale:
       U.S. Treasury securities
       and obligations of U.S.
       government corporations
       and agencies              $ 44,679       $    41        $  1,026     $ 43,694

 Other equity securities            1,978                                      1,978

 Totals                          $ 46,657       $    41        $ 1,026      $ 45,672

 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>
                                     -6-
<PAGE>
<TABLE>
 6.  Loans

 The composition of gross loans (excluding loans held for sale) at
 September 30, 1999, and December 31, 1998, follows:
<CAPTION>
                  September 30, 1999   % of total     December 31, 1998    % of total

 ($ Thousands)
<S>                  <C>                <C>              <C>                <C>
 Commercial            46,208            26.81%            40,514             26.91%
 Real Estate          112,314            65.17%            98,260             65.28%
 Consumer              13,814             8.02%            11,755              7.81%

 Total               $172,336           100.00%          $150,529            100.00%
</TABLE>
 Gross loans outstanding increased 14.75% for the nine months ended
 September 30, 1999: increasing to $172,336 at September 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 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 $1,018 and $582 at
 September 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.

                                    -7-
<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

                                  September 30,     % of total   December 31,   % of total
                                       1999            LOANS        1998           LOANS
<S>                                  <C>               <C>        <C>              <C>
 Loans on a non-accrual basis
      Real estate - mortgage         $   292           .17%       $    35          .02%
      Installment loans                   69           .04%            58          .04%
      Credit cards & related plans         0                            0
      Commercial & all other loans       657           .38%           489          .32%

 Total non-accrual                   $ 1,018           .59%       $   582          .39%

 Loans contractually past due
    thirty through eighty-nine days
    and still accruing
      Real estate - mortgage         $   173           .10%       $   520          .35%
      Installment loans                  210           .12%           120          .08%
      Credit cards & related plans         0                            0
      Commercial & all other loans     1,121           .65%           704          .47%

 Total 30 - 89 days                  $ 1,504           .87%       $ 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>

                                   -8-
<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>
                                  Nine Months Ended             Year Ended
 ($ thousands)                    SEPTEMBER 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             (72)                          0
      Installment & Other
         Consumer Loans                  (21)                        (69)

      Total Charge Offs                 (114)                       (207)

 Recoveries on loans previously
      charged off
      Commercial & Industrial             66                           0
      Agricultural                         0                           0
      Real Estate - Mortgage               8                           0
      Installment & Other
         Consumer Loans                   15                           9

      Total Recoveries                    89                           9

 Net loans charged off                   (25)                       (198)

 Additions charged to operations         255                         300

 Allowance for loan losses
      at end of period                $2,177                      $1,947
</TABLE>
                                    -9-

 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.

 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
<PAGE>
 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 nine months of 1999, total assets increased by $16,000.
 Fed funds sold and investments decreased $5,600.  The decrease was mainly
 due to the $3,000 decease in fed funds sold.  Total loans (excluding
 loans held for sale) increased $21,800.  The majority of the increase in
 the loan portfolio was from real estate loans.  Real estate loans
 increased $14,100 and commercial loans increased $5,700.  Total deposits
 decreased $5,900.  Short term borrowings increased $6,000.  Within short
 term borrowings, fed funds purchased increased $400 and repurchase
 agreements increased $5,600.  Long term borrowings increased $3,000 from
 an additional FHLB advance.

 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 September 30, 1999,
 the carrying value of debt securities maturing within one year amounted
 to $3,448 or 5.92% 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.

                                    -10-

 CAPITAL RESOURCES

 Stockholders' equity at September 30, 1999 increased $992, or 4.83% since
 December 31, 1998.  This net increase was composed of: net income for the
 first nine months of $2,116, a cash dividend of $335 and a decrease in
 the "Net unrealized gain on securities available for sale" of $789.
 Equity to assets at September 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 ended June
 30, 1999.

 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 September 30, 1999, the
<PAGE>
 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 nine months ended September 30, 1999, totaled $2,116,
 an increase of $369 over the $1,747 earned during the same period of
 1998.  Earnings per share were $2.40 for the nine months ended September
 30, 1999 and $1.98 for the same period in 1998.  Cash dividends declared
 were $0.38 per share in June 1999 and $0.35 per share in June 1998.

 Return on average common stockholders' equity amounted to 13.51% for the
 nine months ended September 30, 1999; compared to 11.82% for the nine
 months ended September 30, 1998.

 Return on average assets for the nine months ended September 30, 1999
 amounted to 1.19%; compared to 1.07% for the nine months ended September
 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 $18.8 million in the first nine months of
 1999.  The annualized net interest margin for the first nine months of
 1999 was 3.98% or 8 basis points more than the 3.91% margin in the first
 nine months of 1998.  The interest rate spread also increased, to 3.18%
 from 3.08% reported for September 30, 1998.

 The Company's net interest income was impacted by the interest rate
 environment encountered in the first nine months of 1999 as compared to
 1998.  The lower rate environment dropped our yields on earning assets to
 7.78% compared to 8.17% in 1998.  However, our costs for interest bearing
 deposits also dropped to 4.60% from 5.09%

                                  -11-

 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
 $255 for the nine months ended September 30, 1999 and $225 for the nine
 months ended September 30, 1998.  The allowance for credit losses as a
 percentage of gross loans outstanding was $2,177 or 1.26% of total loans
 on September 30, 1999, compared to $1,927 or 1.29% of total loans on
 December 31, 1998.  Net charge-offs as a percentage of average loans
 outstanding were .01% during the nine months ended September 30, 1999
 and .11% during the first nine months of 1998.
<PAGE>
 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 decreased 5.88% to $1,008 during the nine months
 ended September 30, 1999, from $1,071 during the nine months ended
 September 30, 1998.  There were no gains or losses on securities during
 the nine months ended September 30, 1999.  Fee income on deposit accounts
 increased $4 to $474 during the nine months ended September 30, 1999,
 from $470 during nine months ended September 30, 1998.  Gain on the
 sale of loans decreased $29 to $206 for the nine months ended September
 30, 1999 from $235 for the nine months ended September 30, 1998.  Other
 non-interest income remained similar to the prior period.

 NON-INTEREST EXPENSE

 Non-interest expenses increased 10.22% to $4,270 for the nine months
 ended September 30, 1999, from $3,874 for the nine months ended
 September 30, 1998 before an additional Pension plan expense of $402
 from the termination of our Defined Benefit Pension Plan recorded in
 1998.  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.

                                  -12-
<PAGE>
<TABLE>
<CAPTION>
                       KEY OPERATING RATIOS
               (unaudited) Ended September 30, 1999
                                             NINE MONTH PERIOD        Three Month Period
                                              1999       1998          1999        1998
<S>                                         <C>        <C>           <C>          <C>
 Return on assets (net income divided
 by average assets) (1)                       1.19%     1.07%          1.23%       1.30%

 Return on Average Equity (net income
 divided by average equity) (1)              13.51%    11.82%         14.38%      14.29%

 Average Equity to Average Assets             8.81%     9.04%          8.55%       9.09%

 Interest Rate Spread (difference between
 average yield on interest earning assets
 and average cost of interest bearing
 liabilities) (1)                             3.18%     3.08%          3.22%       3.07%

 Net Interest Margin (net interest income
 as a percentage of average interest
 earning assets) (1)                          3.98%     3.91%          4.01%       3.94%

 Non-interest Expense to average assets (1)   2.49%     2.61%          2.40%       2.31%

 Allowance for loan losses to total loans
 at end of period                             1.26%     1.28%          1.26%       1.28%
<FN>
 (1) Annualized
</TABLE>
                                    -13-
<PAGE>
<TABLE>
                            SELECTED FINANCIAL DATA

 The following table presents consolidated financial data of PSB Holdings, Inc.
 and Subsidiary.
<CAPTION>
                                                          1999
                                                 Third            Second    First
                                                QUARTER          QUARTER   QUARTER
 (Dollars in thousands, except per share amounts)
<S>                                             <C>              <C>        <C>
 FINANCIAL HIGHLIGHTS:
 Earnings and Dividends:
 Net interest revenue                           $2,339           $2,188     $2,129
 Provision for credit losses                       105               75         75
 Other noninterest income                          285              396        327
 Other noninterest expense                       1,379            1,464      1,427
 Net income                                        759              722        635
 Per common share
       Basic and diluted earnings                  .86              .82        .72
       Dividends declared                            0              .38          0
       Book value                                24.40            23.75      23.75
 Average common shares (000's)                     883              883        883
 Dividend payout ratio                               0            24.73%         0
 Balance Sheet Summary:
       Loans net of unearned income            170,548          165,181    152,017
       Assets                                  249,453          242,683    229,246
       Deposits                                205,745          197,393    192,841
       Shareholders equity                      21,548           20,973     20,980
 Average balances:
       Loans net of unearned income            167,938          165,307    151,652
       Assets                                  246,973          241,987    227,383
       Deposits                                202,864          197,886    192,462
       Shareholders equity                      21,106           21,017     20,641
 Performance Ratios:
 Return on average assets (1)                     1.22%            1.19%     1.11%
 Return on average common equity (1)             14.38%           13.77%    12.36%
 Tangible Equity to assets                        8.89%            8.82%     9.01%
 Net loan charge-offs as a percentage
       of average loans                            .01%             .01%      .05%
 Nonperforming assets as a percentage
       of average loans                            .59%             .71%      .20%
 Net interest margin (1)                          4.01%            3.97%     3.97%
 Efficiency ratio (tax adjusted)                 56.93%           55.69%    55.42%
 Liquidity ratio                                 28.33%           28.89%    33.18%
 Fee revenue as a percentage of
       average assets                              .11%             .16%      .14%
<FN>
 (1) annualized
</TABLE>
                                      -14-
<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
 the operations of the Company and that all security and building

                                   -15-
<PAGE>
 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.

 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
<PAGE>
 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.

                                    -17-

                    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

 ITEM 4.  SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS

 Not Applicable

 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)


     2.2       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)
<PAGE>
     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)*

                                   -18-

     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

     (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.



 November 12, 1999                   TODD R. TOPPEN
                                     Todd R. Toppen
                                     Secretary and Controller

 (On behalf of the Registrant and as
 Principal Financial Officer)
<PAGE>
                          EXHIBIT INDEX<dagger>
                                TO
                             FORM 10-Q
                                OF
                        PSB HOLDINGS, INC.
           FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 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.