Press Release  | October 23, 2012


Third Quarter Highlights       


Quarter Ended                          Quarter Ended

September 30, 2012                 September 30, 2011

Diluted earnings per share                                    $.45                                        $.37

Net Income                                                $1,231,000                                $999,000

Return on average common equity                    9.41%                                       8.04%

Return on average assets                                  0.86%                                      0.87%


Millersburg, Ohio – October 23, 2012 – CSB Bancorp, Inc. (OTCBB: CSBB) today announced third quarter 2012 net income of $1.2 million or $.45 per basic and diluted share, as compared to $999 thousand or $.37 per basic and diluted share for the same period in 2011. 

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 9.41% and 0.86%, respectively, compared with 8.04% and 0.87% for the third quarter of 2011.

Eddie Steiner, President and CEO commented, “Third quarter net income was 23% above the previous year’s quarter, reflecting benefits from the larger scale achieved with last year’s acquisition of two Wooster banking center locations, as well as continued strength in home mortgage refinancings.”

Revenue totaled $5.6 million for the third quarter of 2012, an increase of 7% from the prior-year third quarter.  Increases were reflected in both net interest income and other income.  Third quarter net interest income on a fully tax equivalent basis was $4.5 million, a $336 thousand or 8% increase over the third quarter of 2011.  Other income totaled $1.1 million in third quarter 2012, an increase of $28 thousand or 3% compared to third quarter 2011.

Non-interest expense amounted to $3.5 million during the quarter, an increase of $68 thousand or 2% from third quarter 2011.   

The Company’s third quarter efficiency ratio was 62.7% as compared to 69.3% for the same quarter in the prior year.   

Federal income tax provision totaled $534 thousand for third quarter 2012, compared to $444 thousand for the same quarter in 2011. The quarterly provisions reflect effective tax rates of 30% and 31%, respectively. 

Total assets amounted to $569 million on September 30, 2012, up $18 million or 3% from December 31, 2011.  Loans increased to $353 million, up $29 million or 9% year to date, while securities balances of $140 million increased $12 million or 9% from the prior year-end. 

Average total assets during the quarter amounted to $569 million, an increase of $114 million or 25% above the same quarter of the prior year.  Average loan balances of $348 million increased $32 million or 10% from the prior year third quarter, and average securities balances of $138 million increased $51 million or 58% as compared to third quarter 2011.  The year-over-year increase in securities balances resulted from the Company’s deployment of cash obtained in the October 2011 purchase and assumption transaction for two banking centers in Wooster, Ohio.

Average commercial loan balances, including commercial real estate, increased $6.2 million or 3% during the quarter.  Average residential mortgage balances, including home equity line balances, increased by $1.5 million or 1% during the quarter.  Average consumer credit balances increased $182 thousand or 3% versus the linked quarter.

Net charge-offs on loans for the quarter totaled $16 thousand, or 0.02% of average loans on an annualized basis, as compared to net charge-offs of $178 thousand, or 0.22% for third quarter 2011. 

Nonperforming assets totaled $3.7 million or 1.05% of total loans plus other real estate at September 30, 2012 as compared to $3.5 million or 1.08% on December 31, 2011 and $4.0 million or 1.27% at September 30, 2011.  Delinquent loan balances as of September 30, 2012 amounted to 1.77% of total loans as compared to 2.04% on December 31, 2011 and 1.75% at September 30, 2011. 

The Company funded $206 thousand in loan loss provision during the quarter as compared to $240 thousand during the prior year’s quarter. The allowance for loan losses amounted to 1.32% of total loans on September 30, 2012 as compared to 1.31% at September 30, 2011.  The ratio of the allowance for loan losses to nonperforming loans stood at 127% on September 30, 2012 as compared to 117% and 118% at December 31, and September 30, 2011, respectively.  

Deposit balances totaled $454 million at quarter-end, an increase of $11 million or 2.4% from December 31, 2011 and an increase of $99 million or 28% from September 31, 2011. The majority of the year-over-year increase is attributable to deposits acquired with the Wooster banking center acquisition completed in the fourth quarter 2011.  Organic deposit growth without the acquired deposits amounted to $25 million between September 30, 2011 and September 30, 2012 with noninterest bearing, NOW, money market and savings account balances growing and time deposit balances declining due to the low interest rate environment.

The average balance of securities sold under repurchase agreement during the third quarter grew by $8.7 million or 26% above the average for the same period in the prior year. The growth results from a campaign to expand relationships with our business customers. These repurchase agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts.  Average advances from the Federal Home Loan Bank (“FHLB”) decreased $3 million or 14% from the prior year’s quarter as maturing borrowings have been repaid, funded by reducing interest bearing deposits with other banks.

Shareholders’ equity totaled $52.1 million on September 30, 2012 with 2.7 million common shares outstanding at quarter-end.  The Company’s capital position remains strong, with tangible equity to assets approximating 8.2% and 8.0% on September 30, 2012 and December 31, 2011, respectively.  The Company declared a common dividend of $.18 per share during the quarter.  Based on the September 30, 2012 closing stock price of $18.25 per share, the Company’s annual dividend yield approximates 3.9%.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $569 million as of September 30, 2012.  CSB provides a wide 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, 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