Letter to Shareholders

July 25, 2016

Dear Fellow Shareholder:

We are pleased to enclose a second quarter dividend remittance of $0.19 per share. This amount equates to an annualized dividend yield of 3.1% based on CSB’s $24.66 stock price at the time of this writing (July 15).  

Net income for the second quarter amounted to $1.6 million, a 6% increase over second quarter 2015.  At midyear 2016, net income of $3.1 million is 8% ahead of the same point in the prior year. The book value of equity has grown to $64 million, with a total balance sheet of $650 million.

Loan demand has improved.  Businesses appear to have more confidence in the outlook for their products and services, while consumers are taking advantage of the very low interest rate environment for a variety of borrowing needs.  Overall economic conditions within the bank’s markets are stable and on relatively good footing at the present time.  Average loan balances during the second quarter were 7% higher than year ago levels, while average deposit balances were 3% above the same period in the prior year

Credit quality within the bank’s loan portfolio continues to be good, with 0.6% of total loan balances nonperforming as of June 30, 2016 and net charge-offs totaling $14 thousand during second quarter.

Long-term government debt yields have plummeted across the globe. U.S. 10 year treasury yields posted an all-time low of 1.36% in July and one third of developed countries government bonds are currently yielding negative rates. There simply is not enough fundamental strength in economies domestic or abroad to spark strong inflation or afford central banks the opportunity to move interest rates markedly higher in the foreseeable future.

CSB Bancorp, Inc. and The Commercial and Savings Bank remain well-positioned to continue growing and providing excellent financial services for the customers and communities we serve. We thank you for your support as a shareholder.



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 27A 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 2013 Annual Report on Form 10-K, filed on March 25, 2014.  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.

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