Press Release  | October 26, 2011



Third Quarter Highlights       


                                                                Quarter Ended                              Quarter Ended

September 30, 2011                     September 30, 2010

Diluted earnings per share                                         $.37                                           $.32

Net Income                                                      $999,000                                   $882,000

Return on average common equity                          8.04%                                          7.41%

Return on average assets                                        0.87%                                          0.78%


Millersburg, Ohio – October 26, 2011 – CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced third quarter 2011 net income of $999 thousand or $.37 per basic and diluted share, as compared to $882 thousand or $.32 per basic and diluted share for the same period in 2010. 

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 8.04% and 0.87%, respectively, compared with 7.41% and 0.78% for the third quarter of 2010.

Eddie Steiner, President and CEO commented, “Total revenue continues to improve and provision expenses for loan losses are tracking below prior year levels.  However, loan demand remains relatively soft, and we expect low interest rates to continue to exert pressure on net interest margin for the foreseeable future.”  

Revenue totaled $5.3 million for the third quarter of 2011, an increase of 9.6% from third quarter of the prior year.  The increase in revenue was primarily attributable to lower interest expense, resulting in a 4% increase in net interest income to $4.2 million for the quarter.  Noninterest income totaled $1.1 million, a 40% increase from third quarter 2010.  Current year third quarter noninterest income includes a gain of $237 thousand from the sale of investment securities.  Excluding the current year sales gain, current period noninterest income reflected an increase of $77 thousand or 9.9% over the same period of the prior year.

Non-interest expense amounted to $3.5 million during the quarter, an increase of $294 thousand or 9.1% from third quarter 2010.  The largest portion of the increase was attributable to conversion expenses incurred to acquire two banking offices in Wooster, Ohio.  The Company’s third quarter efficiency ratio was 69.6% as compared to 66.7% for the same quarter in the prior year.   

Federal income tax provision totaled $444 thousand for third quarter 2011, compared to $402 thousand for the same quarter in 2010. The quarterly provisions reflect effective tax rates of 30.8% in 2011 as compared to 31.3% for the third quarter 2010. 

Total assets amounted to $458 million on September 30, 2011, up $1 million or 0.2% from December 31, 2010.  Total loan balances of $314 million, were 0.5% below the prior year-end, while securities balances of $91 million were up $10 million or 12.5% from the prior year-end. 

Average total assets during the quarter amounted to $455 million, an increase of $6.5 million or 1.4% during the quarter.  Average loan balances of $316 million declined $4 million during the quarter and average securities balances increased $1 million to $87 million from the immediately preceding quarter.

Average commercial loan balances, including commercial real estate, decreased $1.5 million or 0.7% during the quarter, while average residential mortgage balances declined $4 million or 5.4%.  The decline of in-house mortgage balances reflects a continuation of slow housing activity and customers selecting secondary market mortgage loans because of low prevailing long-term interest rates in those products.  Average home equity balances increased $1.5 million or 4.1% during third quarter, while average consumer credit balances decreased $0.3 million or 3.7%. 

Net charge-offs for the quarter totaled $178 thousand as compared to net charge-offs of $440 thousand during third quarter 2010.  Net charge-offs for the first nine months of the year equated to 0.26% of average loans as compared to 0.28% during the same period of the prior year.

Nonperforming assets totaled $4.0 million or 1.3% of total loans plus other real estate at September 30, 2011, compared to $5.4 million or 1.7% at September 30, 2010.  Delinquent loan balances as of September 30, 2011 amounted to 1.7% of total loans as compared to 2.5% at September 30, 2010. 

The Company funded $240 thousand in loan loss provision during the third quarter and the allowance for loan losses amounted to 1.31% of total loans on September 30, 2011.  The ratio of the allowance for loan losses to nonperforming loans stood at 118% on September 30, 2011 as compared to 115% at the end of the prior quarter and 84% as of September 30, 2010.  

Average deposit balances increased by $2.0 million during the third quarter, or 0.5%.  Total average deposits of $351 million for the quarter were 4.3% above the prior year’s third quarter average. 

Within the deposit category, average non-interest-bearing balances increased $3.4 million or 5.3% from the immediate prior quarter.  Average interest-bearing checking, money market and traditional savings balances increased $81 thousand or 0.1% during the quarter, while average time deposit balances decreased $1.5 million or 1.1%. 

The average balance of securities sold under repurchase agreement increased by $3.4 million or 11.2% during the quarter.  These repurchase agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts.  Average borrowings from the Federal Home Loan Bank (“FHLB”) decreased $0.2 million or 1.0% during the quarter as maturing advances were paid down.

Shareholders’ equity totaled $49.2 million on September 30, 2011 with 2.7 million common shares outstanding at quarter-end.  Tangible equity to assets approximated 10.3% on September 30, 2011 as compared to 9.9% at December 31, 2010.  The Company declared a common dividend of $.18 per share during the quarter.  Based on the September 30, 2011 closing stock price of $15.00 per share, the Company’s annual dividend yield approximates 4.8%. 

On October 14, 2011, CSB acquired two branch offices in Wooster, Ohio, including $74 million in deposit balances, $10 million in loans, and certain other assets and obligations related to the two offices.

About CSB Bancorp, Inc.
CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $458 million as of September 30, 2011.  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