Press Release  | January 28, 2011



Fourth Quarter and Full Year Highlights      


                                                                      Quarter Ended                      Full Year Ended
December 31, 2010               December 31, 2010

Diluted earnings per share                                         $.35                                           $1.28

Net Income                                                      $956,000                                 $3,496,000

Return on average common equity                          7.95%                                          7.43%

Return on average assets                                        0.83%                                          0.78%


Millersburg, Ohio – January 28, 2011 – CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced fourth quarter 2010 net income of $956 thousand or $.35 per basic and diluted share, as compared to $931 thousand or $.34 per basic and diluted share for the same period in 2009. 

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 7.95% and 0.83%, respectively, compared with 8.04% and 0.84% for the fourth quarter of 2009.

For the full year of 2010, the Company reported net income of $3.50 million or $1.28 per basic and diluted share, as compared to $3.39 million or $1.24 per basic and diluted share in 2009.  Full year ROE and ROA were 7.43% and 0.78%, respectively, compared to 7.51% and 0.79% in 2009.

Eddie Steiner, President and CEO commented, “We are pleased that fourth quarter and full year net income were both higher than the prior year results, in spite of the difficult economic and interest rate environments.  Full year earnings were 3% above last year’s results.”

Revenue totaled $4.9 million for the fourth quarter of 2010, a decrease of 2.7% from the prior-year fourth quarter.  Revenue decreased 0.5% for the full year of 2010 to $19.1 million as compared to $19.2 million in 2009.

Non-interest expense amounted to $3.2 million during the quarter, a decrease of $21 thousand or 0.7% from fourth quarter 2009.  For the full year ended December 31, 2010, non-interest expense decreased $142 thousand or 1.1% versus the prior year. 

The Company’s fourth quarter efficiency ratio was 64.8% as compared to 63.5% for the same quarter in the prior year.  The full year 2010 efficiency ratio of 66.0% improved slightly from the 66.2% registered in the prior year. 

Federal income tax provision was $440 thousand for fourth quarter 2010, compared to $413 thousand for the same quarter in 2009.  Full year income tax of $1.6 million for 2010 and $1.5 million for 2009 reflects effective tax rates of 31.0% and 31.1%, respectively. 

Average total assets during the quarter amounted to $455 million, an increase of $15 million or 3.4% above the same quarter of the prior year.  Average loan balances of $315 million were unchanged from the prior year fourth quarter, while average securities balances of $76 million decreased $2.2 million or 2.9% as compared to fourth quarter 2009.

Total assets amounted to $457 million on December 31, 2010, up $6 million or 1.4% from December 31, 2009.  Net loans increased to $312 million, up $2 million or 0.7% from the prior year-end, while securities balances of $81 million were unchanged from the prior year-end. 

Average commercial loan balances for the quarter, including commercial real estate, increased $7 million or 3.9% above year ago levels.  Average residential mortgage balances declined by $9 million or 10.6% during the year.  The decline of in-house mortgage balances was primarily due to customers selecting secondary market products because of prevailing lower interest rates in those products.  Average home equity balances increased $3 million or 8.7%, and average consumer credit balances declined $0.8 million or 10.2% versus the same quarter of the prior year. 

Net charge-offs for the quarter and the full year were $615 thousand and $1.3 million, respectively.  Net charge-offs equated to 0.40% of average loans during 2010 as compared to 0.21% during 2009.

Nonperforming assets totaled $4.6 million or 1.47% of total loans plus other real estate at December 31, 2010, compared to $4.3 million or 1.37% at the prior year-end.  Delinquent loan balances as of year-end 2010 amounted to 2.55% of total loans as compared to 1.92% at the end of 2009. 

The Company funded $239 thousand in loan loss provision during the fourth quarter and the allowance for loan losses amounted to 1.28% of total loans on December 31, 2010.  The ratio of the allowance for loan losses to nonperforming loans stood at 88% at the end of 2010.  

Commenting on the Company’s credit quality, Steiner noted, “Our ratio of nonperforming assets declined from September 30, 2010, while early stage delinquencies as a percent of total loans increased.  We expect total delinquencies and nonperforming assets to remain somewhat elevated for the foreseeable future.”

Average deposit balances grew by $9.9 million during the fourth quarter, or 2.9%.  Total average deposits of $346 million for the quarter were 10.5% above the prior year’s fourth quarter average. 

Deposit balances totaled $353 million at year-end, an increase of $24 million or 7.3% from the prior year-end total.  Within the deposit category, average non interest-bearing account balances for the fourth quarter increased by $16 million, or 30.9% above the same period in the prior year.  Average interest-bearing checking, money market and traditional savings balances increased $16 million or 14.6% from year ago levels, while average time deposit balances grew by $0.7 million or 0.5% during the year.  In addition to the changes in average deposit balances, the average balance of securities sold under repurchase agreement during the fourth quarter grew by $3 million or 8.7% above the average for the same period in the prior year.  Repurchase agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts.

Shareholders’ equity totaled $47.2 million on December 31, 2010 with 2.7 million common shares outstanding at year-end.  The Company’s capital position remains strong, with tangible equity to assets approximating 9.9% on December 31, 2010, compared to 9.7% on December 31, 2009.  The Company declared a common dividend of $.18 per share during the quarter.  Based on the December 31, 2010 closing stock price of $15.57 per share, the Company’s annual dividend yield approximates 4.6%.

About CSB Bancorp, Inc.
CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $457 million as of December 31, 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


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