UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549
                                  ------------

                                   FORM 10-QSB


(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, 2004


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

                  For the transition period from ______________ to _____________

                  Commission file number
                                          --------------------------------------


                               PSB Holdings, Inc.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


         United States                                           42-1597948
--------------------------------------------------------------------------------
(State or other jurisdiction of                                (IRS Employer
incorporation or organization)                               Identification No.)

                    40 Main Street, Putnam, Connecticut 06260
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (860) 928-6501
--------------------------------------------------------------------------------
                           (Issuer's telephone number)

                                      N/A
--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)


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 such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes                        No         X
    -------------------      --------------------

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

Yes                        No         X
    -------------------      --------------------


         As of September 30, 2004, there were no shares of the registrant's
common stock outstanding.

Transitional Small Business Disclosure Format:

Yes                        No         X
    -------------------      --------------------

<PAGE>

<TABLE>
<CAPTION>
                               PSB Holdings, Inc.

                                Table of Contents
--------------------------------------------------------------------------------




Part I.   FINANCIAL INFORMATION
                                                                                                           Page No.
Item 1.   Financial Statements

          Consolidated Statements of Financial Condition (Unaudited) at September 30, 2004 and
<S>                                                                                                             <C>
                June 30, 2004 ..................................................................................2

          Consolidated Statements of Income (Unaudited) for the Three Months Ended
                September 30, 2004 and 2003.....................................................................3

          Consolidated Statements of Changes in Capital Accounts (Unaudited) for the Three Months Ended
                September 30, 2004 and 2003 ....................................................................4

          Notes to Financial Statements (Unaudited).............................................................6

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

Item 3.   Controls and Procedures...............................................................................14

Part II.  OTHER INFORMATION

Item 1.   Legal Proceedings.....................................................................................14

Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds...........................................14

Item 3.   Defaults Upon Senior Securities.......................................................................14

Item 4.   Submission of Matters to a Vote of Security Holders...................................................14

Item 5.   Other Information.....................................................................................14

Item 6.   Exhibits..............................................................................................14


SIGNATURES      ................................................................................................14

</TABLE>




<PAGE>






                          Part I. FINANCIAL INFORMATION

                          Item 1. Financial Statements




                                       1

<PAGE>

                               PSB Holdings, Inc.

                 Consolidated Statements of Financial Condition
                                   (Unaudited)


-------------------------------------------------------------------------
                                                September 30,     June 30,
                                                    2004            2004
                                                  -----------------------
                                                       (in thousands)
ASSETS
Cash and due from depository institutions         $  6,255       $  5,327
Federal funds sold and money market accounts        33,280          2,100
Available-for-sale securities                      157,066        116,573
Loans receivable,  net                             140,789        135,953
Premises and equipment, net                          4,162          4,151
Accrued income receivable                            1,434          1,421
BOLI                                                 2,215          2,189
Other assets                                         1,204          1,178
                                                  -----------------------
TOTAL ASSETS                                      $346,405       $268,892
                                                  -----------------------

LIABILITIES AND CAPITAL ACCOUNTS
Deposits:
   Non-interest bearing                           $ 23,728       $ 25,370
   Interest bearing                                180,984        178,017
                                                  -----------------------
Total deposits                                     204,712        203,387
Borrowed funds                                      51,458         50,240
Mortgagors' escrow accounts                            427            895
Stock offering escrow account                       64,282             --
Other liabilities                                    1,124          1,361
                                                  -----------------------
Total Liabilities                                  322,003        255,883


Capital Accounts:
Additional paid-in capital                              51             51
Retained earnings                                   23,421         22,996
Accumulated other comprehensive income (loss)          930            255
                                                  -----------------------
Total Capital Accounts                              24,402         23,302
                                                  -----------------------
TOTAL LIABILITIES AND CAPITAL ACCOUNTS            $346,405       $279,185
-------------------------------------------------------------------------



                 See notes to consolidated financial statements.

                                       2
<PAGE>


                               PSB Holdings, Inc.

                        Consolidated Statements of Income
                                   (Unaudited)


<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------
                                                                      Three Months Ended
                                                                         September 30,
                                                               ---------------------------------
                                                                   2004               2003
                                                               ---------------------------------
                                                               (in thousands)
Interest income:
<S>                                                                  <C>                <C>
   Interest on loans                                                 $ 2,033            $ 1,964
   Interest and dividends on investments
      and deposits                                                     1,375              1,011
                                                               ---------------------------------
Total interest income                                                  3,408              2,975

Interest expense:
   Deposits and escrow                                                   884                922
   Borrowed money                                                        422                319
                                                               ---------------------------------
Total interest expense                                                 1,306              1,241
                                                               ---------------------------------
Net interest income                                                    2,102              1,734

Provision for loan losses                                                 23                 15
                                                               ---------------------------------


Net interest income after provision for loan losses                    2,079              1,719

Noninterest income:
    Service charges and other fees                                       240                269
    Realized gains on loan sales                                          21                 37
    Realized gains on investments                                          -                 29
                                                               ---------------------------------
Total noninterest income                                                 261                335

Noninterest expenses:
   Salaries                                                              740                674
   Employee benefits and taxes                                           265                233
   Occupancy and equipment                                               183                147
   Professional fees                                                      66                 63
   Marketing                                                              64                 50
   Office supplies                                                        23                 27
   Outside service fees                                                  127                120
   Other                                                                 277                216
                                                               ---------------------------------
Total noninterest expenses                                             1,745              1,530
                                                               ---------------------------------
Income before income tax expense                                         595                524
Income tax expense                                                       170                155
                                                               ---------------------------------
NET INCOME                                                             $ 425              $ 369
------------------------------------------------------------------------------------------------
</TABLE>

                 See notes to consolidated financial statements.
                                       3
<PAGE>


                               PSB Holdings, Inc.

             Consolidated Statements of Changes in Capital Accounts
                                   (Unaudited)



--------------------------------------------------------------------------------
                                                         Accumulated
                                Additional                  Other        Total
                                 paid-in      Retained   Comprehensive   Capital
                                 capital      Earnings   Income (Loss)  Accounts
--------------------------------------------------------------------------------
                                   (in thousands)

Balance at June 30, 2003        $     --     $ 21,515     $  1,544     $ 23,059

Net income                            --          369           --          369

Other comprehensive income            --           --         (281)        (281)
                                --------     --------     --------     --------

Balance at September 30, 2003         --     $ 21,884     $  1,263     $ 23,147
-------------------------------------------------------------------------------

Balance at June 30, 2004        $     51     $ 22,996     $    255     $ 23,302

Net income                            --          425           --          425

Other comprehensive loss              --           --          675          675
                                --------     --------     --------     --------

Balance at September 30, 2004   $     51     $ 23,421     $    930     $ 24,402
-------------------------------------------------------------------------------




                 See notes to consolidated financial statements.
                                       4
<PAGE>


                               PSB Holdings, Inc.

                      Consolidated Statements of Cash Flows
                                   (Unaudited)


-------------------------------------------------------------------------------
                                                           For the Three Months
                                                            Ended September 30,
                                                              2004       2003
-------------------------------------------------------------------------------
                                                                (in thousands)
Cash flows from operating activities
Net income                                                 $    425    $    369
Adjustments to reconcile net income to cash
provided by operating activities:
Provision for loan losses                                        23          15
Depreciation                                                     87          64
Net amortization on available-for-sale securities               113         182
Net realized investment security gains                           --          29
Originations of loans for resale                             (2,216)     (4,664)
Proceeds from sale of loans                                   3,861       4,614
Gain on sale of loans                                           (21)        (38)
Net change in:
Accrued income receivable                                       (13)        (29)
Deferred loan fees                                              (10)        (52)
Other assets                                                   (457)        (70)
Stock offering escrow account                                64,282          --
Other liabilities                                              (237)       (165)
                                                           --------    --------
Net cash provided by operating activities                    65,837         255
                                                           --------    --------

Cash flows from investing activities
Proceeds from sales of
available-for-sale securities                                 1,000       1,371
Proceeds from maturities of
available-for-sale securities                                 6,179      11,044
Purchase of available-for-sale securities                   (36,386)    (10,142)
Loan originations net of principal payments                  (6,473)     (3,601)
Proceeds from the sale foreclosed real estate                    --
Investment in Bank owned life insurance                         (26)        (24)
Purchase of premises and equipment                              (98)       (255)
                                                           --------    --------
Net cash used by investing activities                       (35,804)     (1,607)
                                                           --------    --------

Cash flows from financing activities
Change in savings and demand deposit accounts                (1,000)      4,730
Change in time deposit accounts                               2,325      (1,975)
Proceeds from long term borrowings                               --        1,500
Repayments of long term borrowings                             (598)     (6,500)
Net change in short term borrowings                           1,816          --
Change in mortgagors' escrow account                           (468)       (364)
Change in dividends paid                                         --         (20)
                                                           --------    --------
Net cash provided by financing activities                     2,075      (2,629)
                                                           --------    --------

Increase in cash and cash equivalents                        32,108      (3,981)
Cash and cash equivalents at beginning of year                7,427      13,281
                                                           --------    --------
Cash and cash equivalents at end of year                   $ 39,535    $  9,300
-------------------------------------------------------------------------------

Supplemental disclosures Non-cash investing activities:
Transfer of loans to foreclosed real estate                $     --    $     --
Cash paid during the year for:
Interest                                                   $  1,278    $  1,271
Income taxes                                               $    102    $    100



                 See notes to consolidated financial statements.
                                       5
<PAGE>




                               PSB Holdings, Inc.

                   Notes to Consolidated Financial Statements
                                   (Unaudited)


NOTE 1 - Organization

PSB Holdings,  Inc.  (Company) is a federally chartered holding company that was
initially  formed on May 27, 2003 as a  state-chartered  holding company for the
purpose of  acquiring  all of the common  stock of Putnam  Savings  Bank  (Bank)
concurrent with the Bank's  reorganization  from a mutual savings institution to
the mutual holding company form of  organization.  No shares were offered to the
public as part of this reorganization.

On October 4, 2004, PSB Holdings, Inc. sold 2,832,629 shares of its common stock
at $10.00 per share to  depositors  of Putnam  Savings  Bank and  certain  other
persons, and issued 3,729,846 shares of its common stock to Putnam Bancorp, MHC.
In  addition,  the Company  issued  123,588  shares to a  charitable  foundation
established by Putnam Savings Bank.

Costs  incurred in connection  with the offering were recorded as a reduction of
the proceeds from the offering and amounted to $1,050,661 at October 4, 2004


NOTE  2 - Basis of Presentation

The accompanying unaudited condensed consolidated interim financial statements
have been prepared in accordance with accounting principles generally accepted
in the United States of America for interim financial statements and the
instructions to Form 10-QSB, and accordingly do not include all of the
information and footnotes required by accounting principles generally accepted
in the United States of America for complete financial statements. In the
opinion of management, the accompanying unaudited financial statements reflect
all adjustments necessary, consisting of only normal recurring accruals, to
present fairly the financial position, results of operations and cash flows of
the Company for the periods presented. In preparing the interim financial
statements, management is required to make estimates and assumptions that affect
the reported amounts of assets and liabilities as of the date of the balance
sheet and revenues and expenses for the period. Actual results could differ
significantly from those estimates. The interim results of operations are not
necessarily indicative of the operating results to be expected for the year
ending June 30, 2005.
                                       6
<PAGE>

NOTE 3 - Investment Securities

The carrying value and estimated market values of investment securities are as
follows:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
                                                September 30, 2004
-------------------------------------------------------------------------------------------
                                          Amortized      Gross Unrealized       Estimated
                                         Cost Basis     Gain        (Loss)     Market Value
-------------------------------------------------------------------------------------------
                                                          (in thousands)
<S>                                       <C>         <C>          <C>          <C>
Debt securities:
US government and agency obligations:
From one through five years               $  17,078   $      62    $     (39)   $  17,101
                                          ---------   ---------    ---------    ---------
                                             17,078          62          (39)      17,101
                                          ---------   ---------    ---------    ---------

State agency and municipal obligations:
From five through ten years                     609          31           --          640
After ten years                               8,510         422           --        8,932
                                          ---------   ---------    ---------    ---------
                                              9,119         453           --        9,572
                                          ---------   ---------    ---------    ---------

Corporate bonds and other obligations:
Due within one year                           4,831         115           --        4,946
From one through five years                  17,189         420          (54)      17,555
After ten years                               8,139         326         (201)       8,264
                                          ---------   ---------    ---------    ---------
                                              30,159        861         (255)      30,765
                                          ---------   ---------    ---------    ---------

Mortgage-backed securities                   59,845         615         (309)      60,151
                                          ---------   ---------    ---------    ---------

Total debt securities                       116,201       1,991         (603)     117,589
                                          ---------   ---------    ---------    ---------

Marketable equity securities:
Common stock                                  3,322          69          (10)       3,381
Preferred stock                              36,020          76           --       36,096
                                          ---------   ---------    ---------    ---------

Total equity securities                      39,342         145          (10)      39,477
                                          ---------   ---------    ---------    ---------


Total available-for-sale securities       $ 155,543   $   2,136    $    (613)   $ 157,066
-----------------------------------------------------------------------------------------
</TABLE>


<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
                                  June 30, 2004
----------------------------------------------------------------------------------------
                                          Amortized    Gross Unrealized      Estimated
                                         Cost Basis   Gain        (Loss)    Market Value
----------------------------------------------------------------------------------------
                                 (in thousands)
<S>                                       <C>        <C>         <C>         <C>
Debt securities:
US government and agency obligations:
From one through five years               $ 15,072   $      4    $   (143)   $ 14,933
                                          --------   --------    --------    --------
                                            15,072          4        (143)     14,933
                                          --------   --------    --------    --------

State agency and municipal obligations:
From five through ten years                     --         17          --          17
After ten years                              8,509        168          --       8,677
                                          --------   --------    --------    --------
                                             8,509        185          --       8,694
                                          --------   --------    --------    --------

Corporate bonds and other obligations:
Due within one year                          3,021         51          --       3,072
From one through five years                 20,080        535         (87)     20,528
After ten years                              8,138        243        (195)      8,186
                                          --------   --------    --------    --------
                                            31,239        829        (282)     31,786
                                          --------   --------    --------    --------

Mortgage-backed securities                  61,144        475        (753)     60,866
                                          --------   --------    --------    --------

                                       7
<Page>
Total debt securities                      115,964      1,493      (1,178)    116,279
                                          --------   --------    --------    --------

Marketable equity securities:
Common stock                                 3,160         88          (3)      3,245
Preferred stock                              6,716         23          (6)      6,733
                                          --------   --------    --------    --------

Total equity securities                      9,876        111          (9)      9,978
                                          --------   --------    --------    --------

Total available-for-sale securities       $125,840   $  1,604    $ (1,187)   $126,257
-------------------------------------------------------------------------------------
</TABLE>


Gross gains of $29,000 were realized on available-for-sale securities for the
three months ended September 30, 2003. There were no realized losses on
available-for-sale securities for the years ended September 30, 2004, and 2003.

NOTE 4 - Allowance for Loan Losses

The following summarizes the changes in allowance for loan losses for the three
months ended September 30:

------------------------------------------------------------------
                                                Three Months Ended
                                                  September 30,
                                               -----------------
                                                 2004      2003
                                               -------   -------
                                                 (in thousands)
Balance, beginning of period                   $ 1,285   $ 1,264
     Provision for loan losses                      23        15
     Chargeoffs                                     --        (5)
     Recoveries                                     17         1
                                               -------   -------
Balance, end of period                         $ 1,325   $ 1,275
------------------------------------------------------------------


At September 30, 2004 and June 30, 2004, the Company had loans with balances of
$632,000 (representing 7 loans) and $657,000 (representing 8 loans),
respectively, on nonaccrual status. The loans were not considered impaired.
                                       8
<PAGE>

NOTE 5 -  Comprehensive Income

Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive
Income" establishes standards for disclosure of comprehensive income, which
includes net income and any changes in equity from non-owner sources that are
not recorded in the income statement (such as changes in the net unrealized
gains (losses) on securities). The Company's one source of other comprehensive
income is the net unrealized gain (loss) on securities.

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
                                                                            Three Months Ended
                                                                               September 30,
                                                                            ------------------
                                                                              2004       2003
                                                                            ------------------
                                                                             (in thousands)
<S>                                                                         <C>        <C>
Net Income                                                                  $   425    $   369
                                                                            ------------------
Other comprehensive income (loss):
Net unrealized holding gains (losses) on available-for-sale securities        1,106       (427)
Reclassification adjustment for gain recognized in net income                  --          (29)
                                                                            ------------------
Other comprehensive income (loss) before tax expense                          1,106       (456)
Income tax expense (benefit) related to items of other comprehensive           (431)       175
income (loss)
Change in income tax valuation allowance                                       --         --
                                                                            ------------------
Other comprehensive income net of tax                                           675       (281)
                                                                            ------------------
Total comprehensive income                                                  $ 1,100    $    88
----------------------------------------------------------------------------------------------
</TABLE>


NOTE  6  -  Commitment to Extend Credit

The Company is party to financial instruments with off-balance sheet risk in the
normal course of business to meet the financing needs of its customers. These
financial instruments include commitments to extend credit. These commitments
involve, to varying degrees, elements of credit and interest rate risk in excess
of the amount recognized in the statement of financial condition.

The contractual amounts of outstanding commitments were as follows:

-------------------------------------------------------------------------------
                                              September 30,        June 30,
                                                   2004              2004
                                              ---------------------------------
                                                         (in thousands)
Commitments to extend credit:
     Loan commitments                                $ 5,554           $ 4,770
     Unadvanced construction loans                     5,166             4,623
     Unadvanced lines of credit                       10,830            10,398
     Standby letters of credit                            41               145
                                              ---------------------------------
          Outstanding commitments                   $ 21,591          $ 19,936
-------------------------------------------------------------------------------


Item 2.  Management's Discussion and Analysis or Plan of Operations

The following analysis discusses changes in the financial condition and results
of operations at and for the three months ended September 30, 2004 and 2003, and
should be read in conjunction with the Company's Condensed Consolidated
Financial Statements and the notes thereto, appearing in Part I, Item 1 of this
document. These financial statements should be read in conjunction with the 2004
consolidated financial statements and notes thereto included in the Company's
Form 10-KSB.

The year-end condensed balance sheet data was derived from audited financial
statements, but does not include all disclosures required by GAAP.

                                       9
<PAGE>

Forward-Looking Statements

This report contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. The Company intends such forward-looking
statements to be covered by the safe harbor provisions for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995,
and is concluding this statement for purposes of these safe harbor provisions.
Forward-looking statements, which are based on certain assumptions and describe
future plans, strategies and expectations of the Company, are generally
identified by use of the words "believe," "expect," "intend," "anticipate,"
"estimate," "project," or similar expressions. The Company's ability to predict
results or the actual effect of future plans or strategies is inherently
uncertain. Factors which could have a material adverse effect on the operations
of the Company and its subsidiary include, but are not limited to, changes in:
interest rates, general economic conditions, legislation and regulations,
monetary and fiscal policies of the U.S. Government, including policies of the
U.S. Treasury and the Federal Reserve Board, the quality or composition of the
loan or investment portfolios, demand for loan products, deposit flows,
competition, demand for financial services in the Company's market area and
accounting principles and guidelines. These risks and uncertainties should be
considered in evaluating forward-looking statements and undue reliance should
not be placed on such statements. Further information concerning the Company and
its business, including additional factors that could materially affect the
Company's financial results, is included in the Company's filings with the
Securities and Exchange Commission.

Except as required by applicable law and regulation, the Company does not
undertake - and specifically disclaims any obligation - to publicly release the
result of any revisions that may be made to any forward-looking statements to
reflect events or circumstances after the date of such statements or to reflect
the occurrence of anticipated or unanticipated events.

General

The Company's results of operations depend primarily on net interest and
dividend income, which is the difference between the interest and dividend
income earned on its interest-earning assets, such as loans and securities, and
the interest expense on its interest-bearing liabilities, such as deposits and
borrowings. The Company also generates noninterest income, primarily from fees
and service charges. Gains on sales of loans and securities and cash surrender
value of life insurance policies are added sources of noninterest income. The
Company's noninterest expenses primarily consist of employee compensation and
benefits, occupancy and equipment expense, advertising, data processing,
professional fees and other operating expenses.

Comparison of Financial Condition at September 30, 2004 and June 30, 2004

Assets

Total assets of the Company were $346.4 million at September 30, 2004, an
increase of $67.2 million or 24.1%, compared to $279.2 million at June 30, 2004.
Investments in available-for-sale securities increased $30.2 million or 23.8%,
to $157.0 million at September 30, 2004 compared to $126.8 million at June 30,
2004. Federal funds sold was $33.2 million at September 30, 2004, an increase of
$31.1 million, compared to $2.1 million at June 30, 2004. The growth in
securities and federal funds sold was primarily due to the $64.3 million in the
Stock Offering Escrow account that was originated during the quarter ended
September 30, 2004. Net loans outstanding increased $4.8 million to $140.8
million at September 30, 2004 compared to $136.0 million at June 30, 2004.

Allowance for Loan Losses

The Company determines the adequacy of the allowance for loan losses on a
quarterly basis. We consider a variety of factors in establishing this estimate
including, but not limited to, current economic conditions, delinquency
statistics, geographic and industry concentrations, the adequacy of the
underlying collateral, the financial strength of the borrower, results of
internal and external loan reviews and other relevant factors. This evaluation
is inherently subjective as it requires material estimates by management that
may be susceptible to significant change. The table below indicates the
relationships between the allowance for loan losses, total loans outstanding and
nonperforming loans at September 30, 2004 and June 30, 2004, respectively.

                                       10
<PAGE>

-------------------------------------------------------------------------------
                                                September 30,      June 30,
                                                   2004              2004
                                              ---------------------------------
                                                   (dollars in thousands)
Allowance for loan losses                      $    1,324         $    1,285
Gross loans outstanding                        $  142,113         $  137,238
Nonperforming loans                            $      632         $      657
Allowance/Loans outstanding                          0.93%              0.94%
Allowance/Nonperforming loans                         209%               209%
-------------------------------------------------------------------------------


Past due and Nonperforming loans

The following table sets forth information regarding past due and non-accrual
loans:

--------------------------------------------------------------------------------
                                                   September 30,       June 30,
                                                       2004             2004
                                                  ------------------------------
                                                   (in thousands)

Past due 30 days through 89 days and accruing      $  259              $  602
Past due 90 days or more and nonaccruing           $  632              $  657
--------------------------------------------------------------------------------


Liabilities

Total liabilities increased $66.1 million, or 25.8%, from $255.9 million at June
30, 2004 to $322.0 million at September 30, 2004, primarily due to the Stock
Offering Escrow account. Deposits increased $1.3 million, or .7%, from $203.4
million at June 30, 2004 to $204.7 million at September 30, 2004. Total borrowed
funds, including FHLB Advances, increased by $1.2 million from June 30, 2004 to
September 30, 2004.

Capital

Total capital increased $1.1 million to $24.4 million at September 30, 2004 from
$23.3 million at June 30, 2004. The increase was due to net income of $425,000
and an increase in accumulated other comprehensive income of $675,000.

Net Income

For the three months ended September 30, 2004, the Company reported net income
of $425,000, an increase of $56,000 or 15.2% compared to the year ago period.
The increase was primarily due to a $368,000 increase in net interest and
dividend income, partially offset by a decrease of $74,000 in noninterest income
and an increase of $215,000 in noninterest expense.

Net Interest and Dividend Income

Net interest and dividend income for the three months ended September 30, 2004
totaled $2.1 million compared to $1.7 million for the same period in 2003. This
represented an increase of $368,000 or 21.2%. The change in net interest and
dividend income was primarily due to increased levels of average
interest-earning assets together with a reduction in the cost of funds due to
the lower interest rate environment.

Interest and dividend income amounted to $3.4 million and $3.0 million for the
three months ended September 30, 2004 and 2003, respectively. Average
interest-earning assets were $284.3 million for the quarter ended September 30,
2004, an increase of $54.4 million, or 23.7%, compared to $229.9 million for the
quarter ended September 30, 2003. The increase in average interest-earning
assets was primarily due to loans and securities. The yield earned on average
interest-earning assets decreased to 4.83% for the three months ended September
30, 2004 from 5.22% for the three months ended September 30, 2003.
                                       11
<PAGE>

Interest expense for the current quarter was $1.3 million, an increase of
$65,000, or 5.2%, from the $1.2 million reported in the same quarter last year.
Average interest-bearing liabilities grew $51.8 million during the quarter ended
September 30, 2004 from $216.7 million to $268.5 million primarily due an
increase in deposits of $21.9 million and an increase in other borrowings of
$29.9 million. The average cost of funds decreased to 1.95% for the quarter
ended September 30, 2004 from 2.29% for the year ago period, primarily due to
the lower interest rate environment.

Provision for Loan Losses

The provision for loan losses for the quarter ended September 30, 2004 was
$22,500, which is $7,500 more than the $15,000 recorded for the three months
ended September 30, 2003. The Bank recorded $17,000 in recoveries for the
quarter ended September 30, 2004.

Noninterest income

For the quarter ended September 30, 2004, noninterest income was $261,000
compared to $335,000 in the same quarter a year ago. The decrease of $74,000 was
primarily due to a decrease in Brokerage income of $33,000 and a decrease in net
gains from loan sales and net gains in securities sales of $16,000 and $29,000,
respectively.

Noninterest expense

Noninterest expense for the quarter ended September 30, 2004 was $1.7 million,
an increase of $215,000, or 14.1%, from $1.5 million in the quarter ended
September 30, 2003. Salaries and benefits increased $98,000, or 10.8%. Occupancy
expense increased $36,000, or 24.5%, primarily due to an increase in
depreciation expense of $35,000. Other noninterest expenses increased $82,000 or
17.0%.

Provision for Income Taxes

Reflecting the increase in pretax net income of $75,000, the income tax
provision for the quarter ended September 30, 2004 was $170,000 compared to
$155,000 for the quarter ended September 30, 2003.

Liquidity and Capital Resources

The term liquidity refers to the ability of the Company and the Bank to meet
current and future short-term financial obligations. The Company and the Bank
further define liquidity as the ability to generate adequate amounts of cash to
fund loan originations, deposit withdrawals and operating expenses. Liquidity
management is both a daily and long-term function of business management. The
Bank's primary sources of liquidity are deposits, scheduled amortization and
prepayments of loan principal and mortgage-related securities, and Federal Home
Loan Bank borrowings. The Bank can borrow funds from the Federal Home Loan Bank
based on eligible collateral of loans and securities. The Bank had Federal Home
Loan Bank borrowings as of September 30, 2004 of $50 million with unused
borrowing capacity of $69 million. For the quarter ended September 30, 2004,
another main source of liquidity was the proceeds from the Company's stock
offering.

The Bank's primary investing activities are the origination of loans and the
purchase of investment securities. During the three months ended September 30,
2004 and 2003, the Bank originated loans net of principal payments of
approximately $6.5 million and $3.6 million, respectively. Purchases of
securities totaled $36.4 million and $10.1 million, for the three months ended
September 30, 2004 and 2003, respectively.

Loan repayment and maturing investment securities are a relatively predictable
source of funds. However, deposit flows, calls of investment securities and
prepayments of loans and mortgage-backed securities are strongly influenced by
interest rates, general and economic conditions and competition in the
marketplace. These factors reduce the predictability of the timing of these
sources of funds. Deposit flows are affected by the level of interest rates, by
the interest rates and products offered by competitors and by other factors. The
Bank monitors its liquidity position frequently and anticipates that it will
have sufficient funds to meet its current funding commitments.

Certificates of deposits totaled $62.9 million at September 30, 2004. The Bank
relies on competitive rates, customer service and long-standing relationships
with customers to retain deposits. Based on the Bank's experience with deposit
retention and current retention strategies, management believes that, although
it is not possible to predict future terms and conditions upon renewal, a
significant portion of such deposits will remain with the Bank.
                                       12
<PAGE>

The Bank was well capitalized at September 30, 2004 and exceeded each of the
applicable regulatory capital requirements at such date. The table below
presents the capital required and maintained at September 30, 2004.

-------------------------------------------------------------------------
                                           Required            Bank
                                        ---------------------------------
Tier 1  Capital                               4%              7.90%
Total Risk Based Capital                      8%              12.68%
Tier 1  Risk Based Capital                    8%              11.97%
-------------------------------------------------------------------------


Management is not aware of any known trends, events or uncertainties that will
have or are reasonably likely to have a material effect on the Company's or the
Bank's liquidity, capital or operations, nor is management aware of any current
recommendations by regulatory authorities which, if implemented, would have a
material effect on the Company's or the Bank's liquidity, capital or operations.

Off-Balance Sheet Arrangements

In addition to the normal course of operations, we engage in a variety of
financial transactions that, in accordance with generally accepted accounting
principles, are not recorded in our financial statements. These transactions
involve, to varying degrees, elements of credit, interest rate, and liquidity
risk. Such transactions are used primarily to manage customers' requests for
funding and take the form of loan commitments, lines of credit, and letters of
credit.

For the three months ended September 30, 2004, we engaged in no off-balance
sheet transactions reasonably likely to have a material effect on our financial
condition, results of operations or cash flows.

                                       13

<PAGE>


Item 3.  Controls and Procedures

Under the supervision and with the  participation  of the Company's  management,
including its Chief Executive Officer and Chief Financial  Officer,  the Company
evaluated  the  effectiveness  of the design  and  operation  of its  disclosure
controls and procedures  (as defined in Rule  13a-15(e) and 15d-15(e)  under the
Exchange  Act) as of the end of the period  covered by this  report.  Based upon
that  evaluation,  the  Chief  Executive  Officer  and Chief  Financial  Officer
concluded  that,  as of the  end of the  period  covered  by  this  report,  the
Company's  disclosure  controls  and  procedures  were  effective to ensure that
information  required to be disclosed  in the reports that the Company  files or
submits under the Exchange Act is recorded,  processed,  summarized and reported
within the time periods  specified in the Securities  and Exchange  Commission's
rules and forms and in timely altering them to material  information relating to
the  Company  (or its  consolidated  subsidiaries)  required  to be filed in its
periodic SEC filings.

There  has been no change  in the  Company's  internal  control  over  financial
reporting in connection  with the quarterly  evaluation that occurred during the
Company's  last fiscal quarter that has  materially  affected,  or is reasonably
likely to materially  affect,  the  Company's  internal  control over  financial
reporting.


Part II. - OTHER INFORMATION

Item 1.  Legal Proceedings - Not applicable
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds -
            Not applicable
Item 3.  Defaults Upon Senior Securities - Not applicable
Item 4.  Submission of Matters to a Vote of Security Holders - Not applicable
Item 5.  Other Information - Not applicable
Item 6.  Exhibits

      Exhibits
         31.1     Chief  Executive  Officer  Certification  pursuant  to 17  CFR
                  240.13a-14   as  adopted   pursuant  to  Section  302  of  the
                  Sarbanes-Oxley Act of 2002.
         31.2     Chief  Financial  Officer  Certification  pursuant  to 17  CFR
                  240.13a-14   as  adopted   pursuant  to  Section  302  of  the
                  Sarbanes-Oxley Act of 2002.
         32.1     Chief Executive  Officer  Certification  pursuant to 18 U.S.C.
                  Section  1350,  as  adopted  pursuant  to  Section  906 of the
                  Sarbanes-Oxley Act of 2002.
         32.2     Chief Financial  Officer  Certification  pursuant to 18 U.S.C.
                  Section  1350,  as  adopted  pursuant  to  Section  906 of the
                  Sarbanes-Oxley Act of 2002.





SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                         PSB HOLDINGS, INC.
                                         (Registrant)


Date  November 15, 2004                   /s/  Robert G. Cocks, Jr.
    -------------------------             --------------------------------------
                                          Robert G. Cocks, Jr.
                                          President and Chief Executive Officer



Date  November 15, 2004                   /s/  Robert J. Halloran, Jr.
    -------------------------             --------------------------------------
                                          Robert J. Halloran, Jr.
                                          Vice President and Treasurer

                                       14

<PAGE>



CERTIFICATIONS


CHIEF EXECUTIVE OFFICER CERTIFICATION PURSUANT TO 17 CFR 240.13a-14

I, Robert G. Cocks, Jr., certify that:

         1)       I have  reviewed  this  quarterly  report  Form  10-QSB of PSB
                  Holdings, Inc.,

         2)       Based on my knowledge, this report does not contain any untrue
                  statement  of material  fact or omit to state a material  fact
                  necessary  to  make  the  statements  made,  in  light  of the
                  circumstances  under  which such  statements  were  made,  not
                  misleading with respect to the period covered by this report;

         3)       Based on my  knowledge,  the financial  statements,  and other
                  financial  information included in this report, fairly present
                  in all material respects the financial  condition,  results of
                  operations and cash flows of the small business  issuer as of,
                  and for, the periods presented in this report;

         4)       The small business issuer's other certifying  officer(s) and I
                  are responsible for  establishing  and maintaining  disclosure
                  controls  and  procedures  (as defined in  Exchange  Act Rules
                  13a-15(e) and 15d-15(e)) for the small business  issuer and we
                  have:

                  a)       Designed such disclosure controls and procedures,  or
                           caused such disclosure  controls and procedures to be
                           designed  under  our  supervision,   to  ensure  that
                           material  information  relating to the small business
                           issuer, including its consolidated  subsidiaries,  is
                           made  known to us by others  within  those  entities,
                           particularly  during the period in which this  report
                           is being prepared;

                  b)       evaluated  the  effectiveness  of the small  business
                           issuer's   disclosure  controls  and  procedures  and
                           presented  in this report our  conclusions  about the
                           effectiveness   of  the   disclosure   controls   and
                           procedures,  as of the end of the  period  covered by
                           this report based on such evaluation;


                  c)       Disclosed  in this  report  any  change  in the small
                           business  issuer's  internal  control over  financial
                           reporting  that  occurred  during the small  business
                           issuer's  most  recent  fiscal   quarter  (the  small
                           business  issuer's first fiscal quarter in this case)
                           that has materially affected, or is reasonably likely
                           to materially  affect,  the small  business  issuer's
                           internal control over financial reporting; and

         5)       The small business issuer's other certifying  officer(s) and I
                  have  disclosed,  based  on  our  most  recent  evaluation  of
                  internal  control  over  financial  reporting,  to  the  small
                  business  issuer's  auditors  and the audit  committee  of the
                  small  business   issuer's  board  of  directors  (or  persons
                  performing the equivalent functions):

                  a)       All significant  deficiencies and material weaknesses
                           in the design or operation  of internal  control over
                           financial  reporting  which are reasonably  likely to
                           adversely affect the small business  issuer's ability
                           to record,  process,  summarize and report  financial
                           information; and

                  b)       Any fraud,  whether or not  material,  that  involves
                           management or other  employees who have a significant
                           role in the small business  issuer's internal control
                           over financial reporting.



Date: November 15, 2004
     ---------------------------------------


/s/  Robert G. Cocks, Jr.
--------------------------------------------
Robert G. Cocks, Jr.
President and Chief Executive Officer
                                       15

<PAGE>






CHIEF EXECUTIVE OFFICER CERTIFICATION PURSUANT TO 17 CFR 240.13a-14

I, Robert J. Halloran, Jr., certify that:

         1)       I have  reviewed  this  quarterly  report  Form  10-QSB of PSB
                  Holdings, Inc.,

         2)       Based on my knowledge, this report does not contain any untrue
                  statement  of material  fact or omit to state a material  fact
                  necessary  to  make  the  statements  made,  in  light  of the
                  circumstances  under  which such  statements  were  made,  not
                  misleading with respect to the period covered by this report;

         3)       Based on my  knowledge,  the financial  statements,  and other
                  financial  information included in this report, fairly present
                  in all material respects the financial  condition,  results of
                  operations and cash flows of the small business  issuer as of,
                  and for, the periods presented in this report;

         4)       The small business issuer's other certifying  officer(s) and I
                  are responsible for  establishing  and maintaining  disclosure
                  controls  and  procedures  (as defined in  Exchange  Act Rules
                  13a-15(e) and 15d-15(e))  and internal  control over financial
                  reporting  (as defined in  Exchange  Act Rules  13a-15(f)  and
                  15d-15(f) for the small business issuer and we have:

                  a.       Designed such disclosure controls and procedures,  or
                           caused such disclosure  controls and procedures to be
                           designed  under  our  supervision,   to  ensure  that
                           material  information  relating to the small business
                           issuer, including its consolidated  subsidiaries,  is
                           made  known to us by others  within  those  entities,
                           particularly  during the period in which this  report
                           is being prepared;

                  b.       Evaluated  the  effectiveness  of the small  business
                           issuer's   disclosure  controls  and  procedures  and
                           presented  in this report our  conclusions  about the
                           effectiveness   of  the   disclosure   controls   and
                           procedures,  as of the end of the  period  covered by
                           this report based on such evaluation;


                  c.       Disclosed  in this  report  any  change  in the small
                           business  issuer's  internal  control over  financial
                           reporting  that  occurred  during the small  business
                           issuer's  most  recent  fiscal   quarter  (the  small
                           business  issuer's first fiscal quarter in this case)
                           that has materially affected, or is reasonably likely
                           to materially  affect,  the small  business  issuer's
                           internal control over financial reporting; and

         5)       The small business issuer's other certifying  officer(s) and I
                  have  disclosed,  based  on  our  most  recent  evaluation  of
                  internal  control  over  financial  reporting,  to  the  small
                  business  issuer's  auditors  and the audit  committee  of the
                  small  business   issuer's  board  of  directors  (or  persons
                  performing the equivalent functions):

                  a.       All significant  deficiencies and material weaknesses
                           in the design or operation  of internal  control over
                           financial  reporting  which are reasonably  likely to
                           adversely affect the small business  issuer's ability
                           to record,  process,  summarize and report  financial
                           information; and

                  b.       Any fraud,  whether or not  material,  that  involves
                           management or other  employees who have a significant
                           role in the small business  issuer's internal control
                           over financial reporting.




Date: November 15, 2004
     ---------------------------------------



/s/  Robert J. Halloran, Jr.
--------------------------------------------
Robert J. Halloran, Jr.
Vice President and Treasurer


                                       16
<PAGE>






CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
906 OF THE SARBANES-OXLEY ACT OF 2002
--------------------------------------------------------------------------------


In connection with the Quarterly Report of PSB Holdings, Inc. (the "Company") on
Form 10-QSB for the period ended September 30, 2004 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, Robert
G. Cocks, Jr., President and Chief Executive Officer of the Company, certify,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:


         1.       The Report fully  complies  with the  requirements  of Section
                  13(a) or 15(d) of the Securities Exchange Act of 1934; and

         2.       The information  contained in the Report fairly  presents,  in
                  all material respects,  the financial  condition and result of
                  operations of the Bank.



                                           /s/  Robert G. Cocks, Jr.
                                           -------------------------------------
                                           Robert G. Cocks, Jr.
                                           President and Chief Executive Officer

                                           Dated: November 15, 2004

                                       17
<PAGE>


CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
906 OF THE SARBANES-OXLEY ACT OF 2002
--------------------------------------------------------------------------------


In connection with the Quarterly Report of PSB Holdings, Inc. (the "Company") on
Form 10-QSB for the period ended September 30, 2004 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, Robert
J. Halloran, Jr., Sr. Vice President, Chief Financial Officer and Treasurer of
the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, that:


         1.       The Report fully  complies  with the  requirements  of Section
                  13(a) or 15(d) of the Securities Exchange Act of 1934; and

         2.       The information  contained in the Report fairly  presents,  in
                  all material respects,  the financial  condition and result of
                  operations of the Bank.



                                           /s/  Robert J. Halloran, Jr.
                                           -------------------------------------
                                           Robert J. Halloran, Jr.
                                           Vice President and Treasurer

                                           Dated: November 15, 2004