Press Release  | April 25, 2012


First Quarter Highlights      


Quarter Ended                           Quarter Ended

March 31, 2012                         March 31, 2011

Diluted earnings per share                                      $.39                                           $.33

Net Income                                                   $1,055,000                                  $896,000

Return on average common equity                      8.46%                                          7.67%

Return on average assets                                      0.77%                                          0.80%


Millersburg, Ohio – April 24, 2012 – CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced first quarter 2012 net income of $1.1 million or $.39 per basic and diluted share, as compared to $896 thousand or $.33 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 8.46% and 0.77%, respectively, compared with 7.67% and 0.80% for the first quarter of 2011.

Eddie Steiner, President and CEO commented, “We are pleased that first quarter net income was 18% above the year ago level.  Loan demand has increased in both commercial and consumer segments, although businesses and individuals on the whole are maintaining a cautious posture by borrowing less and continuing to grow deposit balances.  Credit quality within our loan portfolio continues to improve, allowing more-normalized provisioning for future loan losses.”

Revenue totaled $5.3 million for the first quarter of 2012, an increase of 12% from the prior-year first quarter.  Increases were reflected in both net interest income and other income.  First quarter net interest income on a fully tax equivalent basis was $4.4 million, a $385 thousand or 10% increase over the first quarter of 2011.  Other income totaled $948 thousand in first quarter 2012, an increase of $187 thousand or 25% compared to first quarter 2011.

Non-interest expense amounted to $3.5 million during the quarter, an increase of $424 thousand or 14% from first quarter 2011.   

The Company’s first quarter efficiency ratio was 65.9% as compared to 65.3% for the same quarter in the prior year.   

Federal income tax provision totaled $456 thousand for first quarter 2012, compared to $399 thousand for the same quarter in 2011. The quarterly provisions reflect effective tax rates of 30% and 31%, respectively. 

Total assets amounted to $561 million on March 31, 2012, up $10 million or 1.7% from December 31, 2011.  Net loans increased to $327 million, up $7 million or 2.2% in the quarter, while securities balances of $128 million decreased $0.4 million or 0.3% from the prior quarter-end. 

Average total assets during the quarter amounted to $552 million, an increase of $101 million or 22% above the same quarter of the prior year.  Average loan balances of $327 million increased $8 million from the prior year first quarter, and average securities balances of $127 million increased $41 million or 48% as compared to first quarter 2011.

Average commercial loan balances, including commercial real estate, increased $6.2 million or 3% from the prior quarter.  Average residential mortgage balances, including home equity line balances, increased by $1.4 million or 1% during the quarter.  Average consumer credit balances declined $70 thousand or 1% versus the same quarter of the prior year. 

Net charge-offs for the quarter totaled $41 thousand, or 0.05% of average loans on an annualized basis, as compared to $283 thousand, or 0.36% for first quarter 2011. 

Nonperforming assets totaled $3.3 million or 0.99% of total loans plus other real estate at March 31, 2012 as compared to $3.5 million or 1.08% on December 31, 2011 and $3.9 million or 1.22% at March 31, 2011.  Delinquent loan balances as of March 31, 2012 amounted to 1.57% of total loans as compared to 2.04% on December 31, 2011 and 1.87% at March 31, 2011. 

The Company funded $206 thousand in loan loss provision during the quarter as compared to $280 thousand during the prior year’s quarter. The allowance for loan losses amounted to 1.28% of total loans on March 31, 2012 as compared to 1.25% at March 31, 2011.  The ratio of the allowance for loan losses to nonperforming loans stood at 130% on March 31, 2012 as compared to 117% and 103% at December 31, and March 31, 2011, respectively.  

Deposit balances totaled $450 million at quarter-end, an increase of $7 million or 1.5% from December 31, 2011 and an increase of $102 million or 29% from prior year’s quarter-end. The majority of the increase is attributable to deposits acquired with the Wooster branch acquisition during fourth quarter 2011.  Organic deposit growth without the acquired deposits amounted to $28 million between March 31, 2012 and March 31, 2011 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 first quarter grew by $8 million or 26% above the average for the same period in the prior year.  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 $4 million or 16% from the prior year’s quarter as maturing borrowings have been paid down, funded by reducing average balances of Fed funds sold and interest bearing deposits with other banks.

Shareholders’ equity totaled $49.9 million on March 31, 2012 with 2.7 million common shares outstanding at year-end.  The Company’s capital position remains strong, with tangible equity to assets approximating 8% on March 31, 2012 and December 31, 2011.  The Company declared a common dividend of $.18 per share during the quarter.  Based on the March 31, 2012 closing stock price of $17.75 per share, the Company’s annual dividend yield approximates 4.1%.

About CSB Bancorp, Inc.
CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $561 million as of March 31, 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






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