Sept. 23, 2005

PSB HOLDINGS, INC. ANNOUNCES
FOURTH CONSECUTIVE QUARTERLY DIVIDEND
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September 23, 2005: Robert G. Cocks, Jr., President and Chief Executive Officer of PSB Holdings, Inc., today announced that the Company has declared a quarterly cash dividend of $.05 per share of the Company's common stock. The dividend reflects an annual cash dividend rate of $.20 per share. The dividend will be payable to stockholders of record as of October 5, 2005, and will be paid on October 20, 2005.

"We are extremely pleased to be to be able to offer our investors this fourth consecutive quarterly dividend," said Bob Cocks, President and Chief Executive Officer. "We are looking forward to our first annual shareholders meeting on Friday, October 21, 2005."

The Company is the majority-owned subsidiary of Putnam Bancorp, MHC, a federal mutual holding company, which owns 53.7% percent of the Company's outstanding shares. Putnam Bancorp, MHC intends to waive the receipt of dividends paid on its shares of the Company.