Letter to Shareholders

April 19, 2016

Dear Fellow Shareholder:

We are pleased to enclose a first quarter dividend remittance of $0.19 per share.  This amount equates to an annualized dividend yield of 3.2% based on CSB’s $24.00 stock price at the time of this writing (April 12). 

CSB’s first quarter 2016 net income amounted to $1.5 million, generating an annualized return on equity of 9.48%.   Average loan balances increased more than 4% during the quarter, while average deposit balances decreased 2%.  Total ending balances of loans and deposits at March 31, 2016 are each about 3% higher than year ago levels.  The balance sheet totals $637 million, with equity of more than $62 million

Economic conditions continue to improve generally, with new capital investment occurring at a moderate pace within the bank’s market area except for businesses supporting shale sectors, which are reporting some worker layoffs.  Unemployment levels remain near historical norms across the bank’s market area with several counties reporting a bit higher unemployment rates than a year ago.  Consumer sentiment remains fairly stable, at near pre-crisis confidence levels, helped by relatively low fuel costs in home heating and at the gas pump.  Interest rates remain very low, with the Prime rate currently at 3.5% and 10-year treasury yields still trading at 50-year lows in a range of 1.7%-2.1%.  We do not expect any sharp increases in short-term or long-term interest rates during 2016, although a general upward trend may emerge as the year progresses.

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.

 

Sincerely,

                                      
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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