Press Release  | October 22, 2013



Third Quarter Highlights       

                                                                      Quarter Ended                        Quarter Ended
                                                                    September 30, 2013             September 30, 2012

Diluted earnings per share                                         $0.52                                      $0.45

Net Income                                                       $1,407,000                            $1,231,000

Return on average common equity                           10.79%                                      9.41%

Return on average assets                                            0.96%                                     0.86%


Millersburg, Ohio – October 22, 2013 – CSB Bancorp, Inc. (CSBB) today announced third quarter 2013 net income of $1.4 million or $.52 per basic and diluted share, as compared to $1.2 million or $.45 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 10.79% and 0.96%, respectively, compared with 9.41% and 0.86% for the third 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 8% in the past year, and although margins remain tight, this growth has provided a 4% increase in loan interest income.” 

Revenue totaled $5.9 million in the third quarter, a 7% increase from the prior-year third quarter.  Gain on sale of securities contributed $149 thousand to revenue in third quarter 2013 as the bank adjusted its securities portfolio holdings.  Non-interest expense amounted to $3.6 million during the quarter, an increase of $106 thousand or 3% from the same quarter in the prior year.  The Company’s third quarter efficiency ratio amounted to 62.1% as compared to 62.7% for the same quarter in the prior year.   

Average total assets during the quarter amounted to $582 million, an increase of $13 million or 2% above the same quarter of the prior year.  Average loan balances of $375 million were $27 million or 8% above prior year third quarter, while average securities balances of $134 million increased $310 thousand or 0.2% as compared to third quarter 2012.

Total assets amounted to $594 million on September 30, 2013, up $25 million or 4% from September 30, 2012.  Net loan balances at quarter end totaled $372 million, up $24 million or 7% from the year-ago quarter, while securities balances of $145 million were $4 million or 3% higher than year ago balances.  On a linked-quarter basis, net loans declined by $1 million and securities balances increased by $12 million.

Average commercial loan balances, including commercial real estate, declined by $1 million or 0.4% during the quarter ended September 30, 2013.  Average residential mortgage balances decreased by $551 thousand or 1% during the third quarter.  Average home equity balances increased $587 thousand or 1% during the quarter due to a promotional campaign.  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 $78 thousand for the quarter.  The bank’s annualized net charge-offs year to date equate 0.05% of average loan balances. Nonperforming assets totaled $2.4 million or 0.63% of total loans plus other real estate at quarter end, compared to $3.7 million or 1.05% at the end of the third quarter in the prior year.  Delinquent loan balances amounted to 1.44% of total loans on September 30, 2013 down from 1.77% in September 2012. 

The Company funded $210 thousand in loan loss provision during the third quarter and the allowance for loan losses amounted to 1.35% of total loans on September 30, 2013.  The ratio of the allowance for loan losses to nonperforming loans stood at 214% at the end of the quarter.  

Commenting on the Company’s credit quality, Steiner noted that the Company’s non-performing asset balances have continued to demonstrate a general pattern of improvement for the past three years. 

Deposit balances totaled $481 million on September 30, 2013, an increase of $27 million or 6% from September 30 of the prior year. Average total deposits during the quarter of $469 million were 3% above the prior year’s third quarter average, while increasing by $8 million or 2% from the immediate prior quarter. 

Within the deposit category, average non-interest-bearing account balances increased $9 million, or 9% during the quarter.  Average interest-bearing checking, money market and traditional savings balances increased $3 million or 2% 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 third quarter increased by $5 million or 11% during the quarter. The Company’s repurchase agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts and the increase is attributed in part to seasonal increases in business activity among some portions of the bank’s customer base.

Shareholders’ equity totaled $52.1 million on September 30, 2013 with 2.7 million common shares outstanding.  The tangible equity to assets ratio amounted to 7.9% on September 30, 2013.  The Company declared a common dividend of $.18 per share during the quarter.  Based on the September 30, 2013 closing stock price of $19.15 per share, the Company’s annual dividend yield approximates 3.8%.

About CSB Bancorp, Inc.
CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $594 million as of September 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. 

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