Travel Alert: When traveling out of Ohio if you plan to use your debit card please notify CSB. Fraud blocks are in place for FL, NY & PA.
Press Release | July 22, 2013
CSB BANCORP, INC. REPORTS SECOND QUARTER EARNINGS
Second Quarter Highlights
Quarter Ended Quarter Ended
June 30, 2013 June 30, 2012
Diluted earnings per share $0.45 $0.41
Net Income $1,247,000 $1,141,000
Return on average common equity 9.32% 8.98%
Return on average assets 0.88% 0.82%
Millersburg, Ohio – July 22, 2013 – CSB Bancorp, Inc. (CSBB) today announced second quarter 2013 net income of $1.25 million or $.45 per basic and diluted share, as compared to $1.14 million or $.41 per basic and diluted share for the same period in 2012.
Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 9.32% and 0.88%, respectively, compared with 8.98% and 0.82% for the second quarter of 2012.
Eddie Steiner, President and CEO commented, “We continue to focus on growing relationships with current and new customers. The bank’s average loan balances have increased 10% in the past year, and although margins remain tight, this growth has provided increases of approximately 4% in net interest income.”
Revenue totaled $5.7 million in the second quarter, a 4% increase from the prior-year second quarter. Non-interest expense amounted to $3.7 million during the quarter, an increase of $103 thousand or 3% from the same quarter in the prior year. The Company’s second quarter efficiency ratio amounted to 63.4% as compared to 64.0% for the same quarter in the prior year.
Average total assets during the quarter amounted to $572 million, an increase of $9 million or 2% above the same quarter of the prior year. Average loan balances of $375 million were $36 million or 10% above prior year second quarter, while average securities balances of $134 million increased $2 million or 2% as compared to second quarter 2012.
Total assets amounted to $571 million on June 30, 2013, up $4 million or 1% from June 30, 2012. Net loan balances at quarter end totaled $373 million, up $34 million or 10% from the year-ago quarter, while securities balances of $133 million were $1 million or 0.6% higher than year ago balances. On a linked-quarter basis, net loans grew by $5 million and securities balances declined by $4 million.
Average commercial loan balances, including commercial real estate, grew by $2 million or 0.6% during the quarter ended June 30, 2013. Average residential mortgage balances increased by $379 thousand or 0.5% during the second quarter, as the bank continues to originate and retain some 15 year fixed rate mortgages. Average home equity balances increased $101 thousand or 0.3% during the quarter. There were no significant changes in the remainder of the bank’s loan portfolio, which includes installment, credit card and other loan balances totaling less than $10 million in outstanding balances.
The bank recorded net loan charge-offs totaling $69 thousand for the quarter.
Nonperforming assets totaled $2.4 million or 0.63% of total loans plus other real estate at quarter end, compared to $4.0 million or 1.17% at the end of the second quarter in the prior year. Delinquent loan balances amounted to 1.08% of total loans on June 30, 2013, down from 1.67% in June 2012.
The Company funded $210 thousand in loan loss provision during the second quarter and the allowance for loan losses amounted to 1.31% of total loans on June 30, 2013. The ratio of the allowance for loan losses to nonperforming loans stood at 207% at the end of the quarter.
Commenting on the Company’s credit quality, Steiner noted that the Company’s nonperforming asset balances have demonstrated a general pattern of improvement for the past three years.
Deposit balances totaled $463 million on June 30, 2013, an increase of $8 million or 2% from the prior year quarter. Deposit balances at quarter-end were $13 million lower than December 31, 2012, as a run up in deposit balances occurred during the last two weeks of December and gradually dissipated during the first half of 2013.
Average total deposits during the quarter of $461 million were 2% above the prior year’s second quarter average, while declining by $1.5 million or 0.3% from the immediate prior quarter.
Within the deposit category, average non-interest-bearing account balances increased $4 million, or 4% during the quarter. Average interest-bearing checking, money market and traditional savings balances declined $1 million or 1% during the quarter, while average time deposit balances decreased $4 million or 3% during the quarter. In addition to the changes in average deposit balances, the average balance of securities sold under repurchase agreement during the second quarter declined by $3 million or 7% during the quarter. The Company’s repurchase agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts.
Shareholders’ equity totaled $51.4 million on June 30, 2013 with 2.7 million common shares outstanding. The tangible equity to assets ratio amounted to 8.1% on June 30, 2013 and 2012. The Company declared a common dividend of $.18 per share during the quarter. Based on the June 30, 2013 closing stock price of $19.25 per share, the Company’s annual dividend yield approximates 3.7%.
About CSB Bancorp, Inc.
CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $571 million as of June 30, 2013. 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.
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.
Paula J. Meiler, SVP & CFO