FORM 10-Q

                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C.  20549

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

               For the quarterly period ended MARCH 31, 1997

                                    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 March 31, 1997 was 895,425.
<PAGE>
                        PSB HOLDINGS, INC.

                             FORM 10-Q

                   QUARTER ENDED MARCH 31, 1997


                                                         PAGE NO.

 PART I.  FINANCIAL INFORMATION

     Item 1.   Financial Statements
               Consolidated Statements of
               Income, Three Months Ended
               March 31, 1997 (unaudited) and
               March 31, 1996 (unaudited)                      1

               Condensed Consolidated Balance
               Sheets March 31, 1997 (unaudited)
               and December 31, 1996 (derived from
               audited financial statements)                   2

               Condensed Consolidated Statements
               of Cash Flows Three Months
               Ended March 31, 1997 (unaudited)
               and March 31, 1996 (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                               7
     Item 2.   Changes in Securities                           7
     Item 3.   Defaults Upon Senior Securities                 7
     Item 4.   Submission of Matters to Vote of
               Securities Holders                              7
     Item 5.   Other Information                               9
     Item 6.   Exhibits and Reports on form 8-K                9
<PAGE>
<TABLE>
                  PART I.  FINANCIAL INFORMATION

 ITEM 1.  FINANCIAL STATEMENTS

                        PSB HOLDINGS, INC.
                 CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
 ($ thousands except share data - unaudited)    Three Months Ended
                                                     March 31,
                                                1997          1996
 <S>                                          <C>           <C>
 Interest Income
   Interest and fees on loans                 $2,994        $2,868
   Interest on investment securities
      Taxable                                    611           544
      Tax-exempt                                 142           137
   Other interest income                          10            95
      Total interest income                    3,757         3,644

 Interest Expenses:
   Deposits                                    1,901         1,741
   Short-term borrowings                          77           178
      Total interest expense                   1,978         1,919

 Net interest income                           1,779         1,725

 Provisions for losses on loans                   45            45

 Net Interest Income After Provision for
   Loan Losses                                 1,734         1,680

 Other income:
   Service fees                                  117           120
   Insurance commissions                          26            29
   Net security gains                              0             0
   Net gain on other real estate                   0           188
   Other operating income                         45            23
      Total other income                         188           360
 Other Expenses
   Salaries and related benefits                 590           525
   Net occupancy expense                         188           181
   FDIC insurance                                  5             1
   Computer operations                             8            45
   Other operating expense                       268           292
      Total other expenses                     1,059         1,044

 Income before income taxes                      863           996

   Provision for income taxes                    282           340
 Net income                                   $  581        $  656

 Income per share
    Basis:   Weighted Average of 895,425
             shares in 1997
             Weighted Average of 902,425
             shares in 1996
 Net income per share                         $  .65        $  .73
</TABLE>
<PAGE>
<TABLE>
                        PSB HOLDINGS, INC.
                   CONSOLIDATED BALANCE SHEETS
<CAPTION>
      ($ thousands)                              March 31,   December 31,
 ASSETS                                            1997*         1996*
 <S>                                            <C>            <C>
 Cash and cash equivalents                      $  11,062      $  10,152
 Federal Funds Sold                                     0              0
 Investment Securities -
   Held to Maturity
       (Market Value $12,582 & $11,763             12,575         11,714
           at 1997 & 1996 respectively)
   Available for sale (at fair market
       value, cost $37,512 & $39,881               37,178         39,871
           at 1997 & 1996 respectively)
 Total Loans                                      138,154        138,011
    Allowance for Loan Losses                      (1,891)        (1,925)
      Net Loans                                   136,263        136,086
 Bank premises and equipment                        3,673          3,701
 Other Assets                                       2,779          2,634

 TOTAL ASSETS                                   $ 203,530      $ 204,158

 LIABILITIES

 Noninterest-bearing Deposits                   $  24,373      $  28,486
 Interest-bearing Deposits                        153,629        149,643
      Total Deposits                              178,002        178,129

 Federal Funds purchased                            1,599          2,197
 Short-term borrowings                              4,032          3,569
 Other Liabilities                                  1,235          1,974
      Total liabilities                           184,868        185,869

 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                                 10,231          9,649
 Net unrealized loss on securities available
    for sale, net of deferred income taxes           (218)            (9)
 Treasury stock, at cost - 7,000 shares              (315)          (315)
      Total stockholders' equity                   18,662         18,289

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $ 203,530      $ 204,158
<FN>
 *The consolidated balance sheet at March 31, 1997 is unaudited.  The
 December 31, 1996 consolidated balance sheet is derived from audited
 financial statements.
</TABLE>
<PAGE>
<TABLE>
                        PSB HOLDINGS, INC.
               CONSOLIDATED STATEMENTS OF CASH FLOW
<CAPTION>
                                                      Three Months Ended
                                                           March 31,
 ($ thousands - unaudited)                            1997          1996
 <S>                                               <C>           <C>
 Cash flows from operating activities:
   Net income                                      $   581       $   656
   Provision for depreciation, and
       net amortization                                113            71
   Provisions for loan losses                           45            45
   Changes in operating assets and liabilities:
     Gain on sale of other real estate                   0          (188)
     Other assets                                     (145)         (344)
     Other liabilities                                (739)         (526)
 Net cash used in operating activities                (145)         (286)

 Cash flows from investing activities:
   Proceeds from sale and maturities of:
     Held to maturity securities                       200           145
     Available for sale securities                   2,977         6,097
   Payment for purchase of
     Held to maturity securities                    (1,066)       (1,291)
     Available for sale securities                    (495)       (9,851)
   Net change in loans                                (221)       (2,485)
   Net increase in
     federal funds sold                                  0         5,683
   Proceeds from sale of other real estate               0           215
   Capital expenditures                                (79)         (109)
 Net cash provided by (used in) investing
   activities                                        1,316        (1,596)

 Cash flows from financing activities:
   Net decrease in deposits                           (126)       (3,892)
   Net increase in short-term borrowings               463           659
   Net increase (decrease) in federal funds
     purchased                                        (598)        1,246
   Proceeds from exercise of stock options               0             0
   Dividends paid                                        0             0
 Net cash used in financing activities                (261)       (1,987)

 Net increase (decrease) in cash and cash
   equivalents                                         910        (3,869)
 Cash and cash equivalents at beginning of year     10,152        10,868
 Cash and cash equivalents at end of quarter       $11,062       $ 6,999

 Supplemental Cash Flow Information:
   Cash paid during the period for :  Interest       1,978         1,919
                                      Income taxes      46            35
</TABLE>
<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 1996
     annual report for the company's accounting policies which are
     pertinent to these statements.
<PAGE>
 ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
           AND RESULTS OF OPERATIONS
           (All $ amounts are in thousands, except per share amounts)

 RESULTS OF OPERATIONS

 TOTAL ASSETS
 Total assets have decreased by $628 from December 31, 1996 to March 31,
 1997.  This is a decrease of .31%.  This is a normal occurrence since
 historically total assets do not increase over the prior year end until
 the 3rd quarter of the year.

 LOANS
 Net loans have increased by $177 from December 31, 1996 to March 31, 1997.
 This is an increase of .13%.

 CASH AND INVESTMENTS
 Cash remained fairly constant as of March 31, 1997 compared to December
 31, 1996.  Investments, on the other hand decreased by $1,832 or 3.55%.
 However, as of March 31 a pending security purchase of $1,500 is not
 reflected in the totals.

 DEPOSITS
 Deposits decreased slightly by $127 from December 31, 1996 to March 31,
 1997.

 SHORT TERM BORROWINGS
 Fed funds purchased decreased by $598 from December 31, 1996 to March 31,
 1997.  Repurchase agreements increased $463.

 EQUITY
 Equity grew by $373 or 2.04% due to the following:  Net income for the
 first three months of $581 and an increase in the "Net unrealized loss on
 securities available for sale" of $208.  The increase in the unrealized
 loss is a result of the market prices of the investment portfolio dropping
 as of March 31, 1997.

 OPERATING DATA SUMMARY

 GENERAL
 Net interest income for the first quarter of 1997 is $54 or 3.13% greater
 than it was for the same period in 1996.

 NON-INTEREST INCOME
 Non-interest income decreased by $172 from the period ending March 31,
 1997 compared to the period ending March 31, 1996.  This decrease is
 attributable to the sale of Other Real Estate in January of 1996.  Total
 proceeds were $215 with a net gain of $188.

 NON-INTEREST EXPENSE
 Non-interest expenses increased 1.44% or $15 for the period ending March
 31, 1997 when compared to the period ending March 31, 1996.

 NET INCOME
 Net income for three months of 1997 is 11.43% lower than the same period
 in 1996 and earnings per share decreased from $.73 to $.65, or 10.96%.
<PAGE>
<TABLE>
<CAPTION>
                       KEY OPERATING RATIOS
                 (unaudited) Ended March 31, 1997
                                                     THREE MONTH PERIOD
                                                      1997        1996
 <S>                                                 <C>        <C>
 Return on assets (net income divided
 by average assets) (1)                               1.15%      1.17%

 Return on Average Equity (net income
 divided by average equity) (1)                      12.65%     12.19%

 Average Equity to Average Assets                     9.12%      9.23%

 Interest Rate Spread (difference between
 average yield on interest earning assets
 and average cost of interest bearing
 liabilities) (1)                                     3.01%      2.98%

 Net Interest Margin (net interest income as a
 percentage of average interest earning assets (1)    3.78%      3.83%

 Non-interest Expense to average assets (1)           2.10%      2.17%

 Allowance for loan losses to total loans
 at end of period                                     1.37%      1.44%
<FN>
 (1) Annualized
</TABLE>
<PAGE>
                    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
<PAGE>
 ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K:


 (a) Exhibits required by Item 601 of Regulation S-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.  Exhibits incorporated by reference are indicated by footnote
     reference to incorporated filing.

     EXHIBIT (3) - ARTICLES OF INCORPORATION AND BYLAWS
                                                       PAGE OR
                                                     INCORPORATED
                                                       EXHIBIT <dagger>

     (i)  Restated Articles of Incorporation, as amended. 4(a)(1)

     (ii) Bylaws  ....................................... 4(b)(1)


     EXHIBIT (4) - INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS

     (a)  Articles of Incorporation and
          Bylaws (see Exhibits 3(a) and (b))

     EXHIBIT (10) - MATERIAL CONTRACTS

     (a)  Bonus Plan of Directors of the Bank* ......... 10(a)(2)

     (b)  Bonus Plan of Officers and Employees of the
          Bank* ........................................ 10(b)(2)

     (c)  Non-Qualified Retirement Plan for Directors
          of the Bank* ................................. 10(c)(2)

     EXHIBIT (21) - SUBSIDIARIES OF THE REGISTRANT ..... 22(2)

     EXHIBIT (27) - FINANCIAL DATA SCHEDULE

     * Denotes Executive Compensation Plans and Arrangements.

          <dagger>Where exhibit has been previously filed and is
          incorporated herein by reference, exhibit numbers set forth
          herein correspond to the exhibit number where such exhibit can be
          found in the following reports of the registrant (Commission File
          No. 0-26480) filed with the Securities and Exchange Commission:

     (1)  Registrant's current report on Form 8-K dated May 30, 1995

     (2)  Registrant's annual report on Form 10-K for the fiscal year ended
          December 31, 1995


 (b) Reports on Form 8-K:

     None.
<PAGE>
                            SIGNATURES



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




                                  PSB HOLDINGS, INC.



 May 12, 1997                     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 MARCH 31, 1997
           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 Part IV, Item 14(c) of the Form
              10-Q to which this Exhibit Index relates.