Press Release  |  July 20, 2010


SECOND Quarter Highlights
• Net Income totals $921,000
• Diluted earnings per share of $0.34
• Return on average common equity of 7.90%
• Return on average assets of 0.85%

Millersburg, Ohio – July 20, 2010 – CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced second quarter 2010 net income of $921 thousand, or $.34 per basic and diluted share, as compared to $706 thousand, or $.26 per basic and diluted share for the same period in 2009.

Annualized returns on average common equity and average assets for the quarter were 7.90% and 0.85%, respectively, compared with 6.32% and 0.67% for the second quarter of 2009.

Eddie Steiner, President and CEO stated, “The Company’s balance sheet grew by 1.3% during the quarter as customers increased deposit balances. Demand for new loans remained soft but was sufficient to offset principal paydowns, reversing four consecutive quarters of modest declines in loan balances outstanding. Second quarter earnings are above year ago levels, and the Company continues to generate consistent profitability.”

Net interest income of $3.8 million improved $1 thousand or 0.03% from the same quarter in the prior year. Net interest margin equated to 3.76% for the quarter, as compared to 3.88% during the second quarter of 2009. Total revenue of $4.8 million increased 2.4% compared with revenue of the prior-year second quarter.

Non-interest expense totaled $3.1 million during the quarter, a decrease of $60 thousand, or 1.9%, from second quarter 2009. The Company’s second quarter efficiency ratio was 67.7%, as compared to same quarter results in the prior year of 68.5%.

Federal income tax expense was $412 thousand for second quarter 2010, reflecting an effective tax rate of 30.9%, compared to $302 thousand for the same quarter in 2009, or 29.9%. The higher effective tax rate was primarily the result of a lesser portion of the Company’s revenue coming from tax-exempt securities held in the Company’s investment portfolio.

At June 30, 2010, assets totaled $441 million, up $6 million, or 1.3%, from March 31, 2010. Securities balances increased $3 million, or 3.8% during the quarter while total loan balances grew by $1 million, or 0.3% to $312 million at June 30. Commercial loan balances, including commercial real estate, increased $1.9 million or 1.0% during the three months ended June 30, residential mortgage and home equity balances declined $1.0 million, or 0.9% from the prior linked quarter, while consumer installment, and other loan balances increased $121 thousand, or 1.7%.

CSB recognized net loan recoveries of $14 thousand during the quarter, representing an annualized rate of (0.02%) of average loan balances and resulting in a six-month annualized loss rate of 0.14% at the mid point of the Company’s fiscal year.

As of June 30, 2010, nonperforming assets totaled $6.3 million, or 2.03% of period-end loans plus other real estate, compared with $6.5 million, or 2.09%, at the prior quarter-end. Commenting on the Company’s credit quality, Mr. Steiner noted, “Nonperforming assets remain somewhat elevated as difficult economic conditions continue to exert stress on some borrowers. We expect these conditions to continue through 2010 as the economy struggles to regain positive momentum.”

The Company’s allowance for loan losses at June 30, 2010 was 1.48% of period end loans and the Company funded $239 thousand in loan loss provision during the quarter. The ratio of allowance for loan losses to nonperforming loans stood at 76% at quarter-end.

Deposit balances totaled $330 million at June 30, 2010, an increase of $3.6 million, or 1.1% from the prior quarter. Within the deposit category, non interest-bearing account balances increased $5 million, or 8.7%. Interest bearing checking, money market and savings accounts declined $4 million, or 3.3%, from March 31 and time deposit balances increased $3.2 million, or 2.2%.

Short-term and other borrowings amounted to $63 million as of June 30, up $1 million for the quarter as customers increased balances under retail repurchase agreements.

Shareholders’ equity totaled $47 million on June 30, 2010 with 2.7 million common shares outstanding and a tangible equity to assets ratio of 10.2% at quarter-end. In concluding remarks, Mr. Steiner observed, “The Company’s capital and liquidity positions remain strong and provide stability to effectively meet the financial service needs of the communities we serve.”

The Company declared a common dividend of $0.18 per share during the quarter.

About CSB Bancorp, Inc.
CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $441 million as of June 30, 2010. CSB provides a complete range of banking and other financial services to consumers and businesses through its wholly owned subsidiary, The Commercial and Savings Bank, with fourteen banking centers in Holmes, Tuscarawas, Wayne and Stark counties and Trust offices located in Millersburg and Wooster, Ohio.

Forward-Looking Statement
This release contains forward-looking statements relating to present or future trends or factors affecting the banking industry, and specifically the financial condition and results of operations, including without limitation, statements relating to the earnings outlook of the Company, as well as its operations, markets and products. Actual results could differ materially from those indicated. Among the important factors that could cause results to differ materially are interest rate changes, softening in the economy, which could materially impact credit quality trends and the ability to generate loans, changes in the mix of the Company’s business, competitive pressures, changes in accounting, tax or regulatory practices or requirements and those risk factors detailed in the Company’s periodic reports and registration statements filed with the Securities and Exchange Commission. The Company undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.

Contact Information:
Paula J. Meiler, SVP & CFO

Return to CSB Press Releases

CSB Locations