Letter to Shareholders
July 22, 2013
Dear Fellow Shareholder:
We are pleased to enclose a second quarter dividend remittance of $0.18 per share. This amount equates to an annualized dividend yield of 3.7% based on CSB’s $19.30 stock price at the time of this writing (July 15). The book value of CSB stock was $18.78 per share at quarter-end.
CSB’s second quarter 2013 net income totaled $1.25 million, a 9% increase over second quarter 2012. Average loan balances increased 0.6% during the current quarter, while average deposit balances declined 0.3%.
Commercial loan demand remained at a moderate and improving level during the quarter. Home mortgage activity slowed as higher interest rates for long-term fixed rate mortgages dampened refinancing demand.
Credit quality within the bank’s loan portfolio continues to be good, with minimal charge-offs over the past six quarters and 0.6% of total loan balances nonperforming as of June 30, 2013.
Over the past two weeks, federal banking agencies adopted final rule language for enhanced capital requirements in the banking system. We do not expect these adopted requirements to have a significant impact on the Company’s financial performance or business model.
CSB Bancorp, Inc. and The Commercial and Savings Bank remain well-positioned for growth and meeting the needs of the communities we serve. We thank you for your support and will continue to focus on building value for the Company’s shareholders.
Eddie Steiner John Waltman
President and Chief Executive Officer Chairman of the Board
This press release may include forward-looking statements within the meaning of Section 7A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. We have based these forward-looking statements on the Company’s current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us and the Company’s affiliate companies, that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions. Factors that might cause or contribute to such a discrepancy include, but are not limited to those identified in the Company’s Securities and Exchange Commission filings, including the Company’s 2012 Annual Report on Form 10-K, filed on March 25, 2013. The discussion should be read in conjunction with the Company’s Financial Statements and related Notes thereto included in the Company’s Form 10-K and Form 10-Q filings.
- CSB Bancorp, Inc. Audit Committee Charter
- CSB Bancorp, Inc. Compensation Committee Charter
- CSB Bancorp, Inc. Nominating Committee Charter