Press Release  | January 31, 2012


Fourth Quarter and Full Year Highlights      


     Quarter Ended                      Full Year Ended

December 31, 2011               December 31, 2011

Diluted earnings per share                                         $.30                                           $1.35

Net Income                                                      $820,000                                 $3,687,000

Return on average common equity                          6.58%                                          7.57%

Return on average assets                                        0.61%                                          0.78%


Millersburg, Ohio – January 31, 2012 – CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced fourth quarter 2011 net income of $820 thousand or $.30 per basic and diluted share, as compared to $956 thousand or $.35 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 6.58% and 0.61%, respectively, compared with 7.95% and 0.83% for the fourth quarter of 2010.

For the full year of 2011, the Company reported net income of $3.7 million or $1.35 per basic and diluted share, as compared to $3.5 million or $1.28 per basic and diluted share in 2010.  Full year ROE and ROA were 7.57% and 0.78%, respectively, compared to 7.43% and 0.78% in 2010.

Eddie Steiner, President and CEO commented, “During fourth quarter, the Company acquired two branches located in Wooster, Ohio.  The transaction added six thousand new customer relationships, $74 million in deposits, $9 million in loans, and involved $3.7 million in purchase premium.  Related acquisition expenses were recognized as incurred, including system conversion and operations integration charges totaling $337 thousand.  We anticipate the Wooster branch presence will assist our continued growth in that market.” 

Revenue totaled $5.2 million for the fourth quarter of 2011, a 7% increase from the prior-year fourth quarter.  Full year revenue of $20.1 million reflects a $1 million, or 5%, increase as compared to full year 2010.

Non-interest expense amounted to $3.7 million during the quarter, an increase of $585 thousand or 18% from fourth quarter 2010.  For the full year ended December 31, 2011, including the nonrecurring expenses related to purchase and assumption of Wooster, Ohio branch operations, non-interest expense increased $1.1 million or 8% versus 2010.

The Company’s fourth quarter efficiency ratio amounted to 71.5% as compared to 64.8% for the same quarter in the prior year.  Excluding the aforementioned nonrecurring expenses, the fourth quarter efficiency ratio equated to 69.5%.  The full year 2011 efficiency ratio of 68.1%, including the nonrecurring acquisition and conversion expenses, compares to 66.0% for the full prior year. 

Federal income tax provision was $324 thousand for fourth quarter 2011, compared to $440 thousand for the same quarter in 2010.  Full year income tax of $1.6 million for 2011 was 2% higher than prior year and reflects an effective tax rate of 30.3% for current year versus 31.0% in 2010. 

Average total assets during the quarter amounted to $530 million, an increase of $75 million or 17% above the same quarter of the prior year.  Average loan balances of $320 million were $5 million or 1% above prior year fourth quarter, while average securities balances of $116 million increased $40 million or 53% as compared to fourth quarter 2010.

Total assets amounted to $551 million on December 31, 2011, up $94 million or 21% from December 31, 2010.  Net loans increased to $320 million, up $8 million or 3% from the prior year-end, while securities balances of $128 million were $48 million or 59% higher than year ago balances. 

Average commercial loan balances for the quarter, including commercial real estate, increased $12 million or 6% above year ago levels.  Average residential mortgage balances declined by $11 million or 15% during the year.  The decline of in-house mortgage balances was primarily due to customers continuing to select secondary market mortgage products because of the historic low interest rates prevailing in those fixed rate products.  Average home equity balances increased $3 million or 10%, and average consumer credit balances increased $81thousand or 1% versus the same quarter of the prior year. 

Net charge-offs for the quarter and the full year were $275 thousand and $900 thousand, respectively.  Net charge-offs equated to 0.28% of average loans during 2011 as compared to 0.40% during 2010.

Nonperforming assets totaled $3.5 million or 1.08% of total loans plus other real estate at December 31, 2011, compared to $4.6 million or 1.47% at the prior year-end.  Delinquent loan balances as of year-end 2011 amounted to 2.04% of total loans as compared to 2.55% at the end of 2010. 

The Company funded $240 thousand in loan loss provision during the fourth quarter and the allowance for loan losses amounted to 1.26% of total loans on December 31, 2011.  The ratio of the allowance for loan losses to nonperforming loans stood at 117% at the end of 2011.  

Commenting on the Company’s credit quality, Steiner noted, “Our level of nonperforming assets remains somewhat elevated, but each quarter of 2011 reflected improvement as compared to the prior year quarter.  Early stage delinquencies within the loan portfolio at the end of 2011 are also lower than prior year levels.”

Average deposit balances grew by $72 million, or 20%, during the fourth quarter, attributable almost entirely to the Wooster market transaction.  Total average deposits of $422 million for the quarter were 22% above the prior year’s fourth quarter average. 

Deposit balances totaled $444 million at year-end, an increase of $90 million or 25% from the prior year-end.  Within the deposit category, average non interest-bearing account balances for the fourth quarter increased by $16 million, or 23% above the same period in the prior year.  Average interest-bearing checking, money market and traditional savings balances increased $42 million or 33% from year ago levels, while average time deposit balances grew by $18 million or 12% 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 $4 million or 13% 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 $49.4 million on December 31, 2011 with 2.7 million common shares outstanding.  The tangible equity to assets ratio amounted to 8.0% on December 31, 2011, as compared to 9.9% on December 31, 2010.  The Company declared a common dividend of $.18 per share during the quarter.  Based on the December 31, 2011 closing stock price of $16.75 per share, the Company’s annual dividend yield approximates 4.3%.

About CSB Bancorp, Inc.
CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $551 million as of December 31, 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 sixteen banking centers in Holmes, Wayne, Tuscarawas 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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