"Heartbleed" in the News - You may have read or heard about the recently announced "Heartbleed" vulnerability for the Internet community. CSB’s website, internet banking and mobile applications are secure and have not been affected. However, if you use the same password for multiple internet applications, including your CSB internet banking, we strongly advise you to change your CSB password to a unique password used only for CSB internet banking. It would be best to use a combination of upper and lower case letters and numbers. You may also want to refer to heartbleed.com for more information about the “Heartbleed” internet vulnerability. As companies patch their systems to protect from this vulnerability, they may request that you change your password and/or update your security questions. We highly recommend you follow their instructions, keeping in mind that no legitimate business would ask you to provide your password to them. Your password should be known only by you.
Press Release | January 24, 2014
CSB BANCORP, INC. REPORTS FOURTH QUARTER AND FULL YEAR EARNINGS
Fourth Quarter and Full Year Highlights
Quarter Ended Full Year Ended
December 31, 2013 December 31, 2013
Diluted earnings per share $0.45 $1.91
Net Income $1,224,00 $5,240,000
Return on average common equity 9.19% 9.93%
Return on average assets 0.82% 0.90%
Millersburg, Ohio – January 24, 2014 – CSB Bancorp, Inc. (CSBB) today announced fourth quarter 2013 net income of $1.2 million or $.45 per basic and diluted share, as compared to $1.1 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 9.19% and 0.82%, respectively, compared with 8.50% and 0.77% for the fourth quarter of 2012.
For the full year of 2013, the Company reported net income of $5.2 million or $1.91 per basic and diluted share, as compared to $4.5 million or $1.66 per basic and diluted share in 2012. Full year ROE and ROA were 9.93% and 0.90%, respectively, compared to 8.85% and 0.80% in 2012.
Eddie Steiner, President and CEO commented, “Net interest income increased for the eleventh time out of the past twelve quarters. Our ability to attract and grow customer relationships has been instrumental in driving the revenue stream. This focus on expanding customer relationships will continue to be our core strategy in the coming year.”
Revenue, on a fully-taxable equivalent basis, totaled $6.0 million for the fourth quarter of 2013, a 5.8% increase from the prior-year fourth quarter. Full year revenue of $23.5 million reflects a $1.4 million, or 6.4%, increase as compared to full year 2012.
Non-interest expense amounted to $4 million during the quarter, an increase of $174 thousand or 4.6% from fourth quarter 2012. For the full year ended December 31, 2013, non-interest expense increased $398 thousand or 2.8% versus 2012, with the majority of the change attributable to increases in personnel costs.
The Company’s fourth quarter efficiency ratio amounted to 65.7% as compared to 63.6% for the same quarter in the prior year. The full year 2013 efficiency ratio of 63.0% compares to 64.7% for the full prior year. Net interest margin amounted to 3.55% for the quarter and 3.51% for the full year, compared to 3.33% and 3.36% for the prior year’s fourth quarter and full year, respectively.
Federal income tax provision was $520 thousand for fourth quarter 2013, compared to $475 thousand for the same quarter in 2012. Full year income tax of $2.3 million for 2013 was 14% higher than prior year and reflects an effective tax rate of 30.3% for current year versus 30.4% in 2012.
Average total assets during the quarter amounted to $595 million, an increase of $19 million or 3.3% above the same quarter of the prior year. Average loan balances of $376 million were $20 million or 5.5% above prior year fourth quarter, while average securities balances of $147 million increased $14 million or 10% as compared to fourth quarter 2012.
Total assets amounted to $596 million on December 31, 2013, up $10 million or 1.6% from December 31, 2012. Loans increased to $379 million, up $15 million or 4% from the prior year-end, while securities balances of $152 million were $17 million or 12% higher than year ago balances.
Average commercial loan balances for the quarter, including commercial real estate, increased $12 million or 5% above year ago levels. Average residential mortgage balances increased by $4 million or 5% during the year. The increase of in-house mortgage balances was the result of the bank originating and retaining 15 year fixed rate mortgages. Average home equity balances increased $1 million or 2%, and average consumer credit balances increased $333 thousand or 5% versus the same quarter of the prior year.
Net charge-offs for the quarter and the full year were $202 thousand and $335 thousand, respectively. Net charge-offs equated to 0.09% of average loans during 2013 and 2012.
Nonperforming assets totaled $5.1 million or 0.86% of total loans plus other real estate at December 31, 2013, compared to $4.6 million or 0.92% at the prior year-end. Delinquent loan balances as of year-end 2013 amounted to 1.26% of total loans as compared to 1.25% at the end of 2012.
The Company funded $210 thousand in loan loss provision during the fourth quarter and the allowance for loan losses amounted to 1.34% of total loans on December 31, 2013. The ratio of the allowance for loan losses to nonperforming loans stood at 156% at the end of 2013.
Commenting on the Company’s credit quality, Steiner noted, “Our level of nonperforming assets have declined fairly consistently since peaking during first quarter 2010, with an increase this past quarter related solely to a single credit. Delinquencies as a percentage of the loan portfolio remain low and relatively stable, amounting to 1.26% at year-end 2013.”
Average deposit balances grew by $10 million, or 2%, from the prior linked quarter. Total average deposits of $479 million for the quarter were 3% above the prior year’s fourth quarter average.
Deposit balances totaled $481 million at year-end, an increase of $5 million or 1% from the prior year-end. Within the deposit category, average noninterest-bearing account balances for the fourth quarter increased by $24 million, or 24% above the same period in the prior year. Average interest-bearing checking, money market and traditional savings balances increased $10 million or 5% from year ago levels, while average time deposit balances decreased $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 $6 million or 15% 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 $52.4 million on December 31, 2013 with 2.7 million common shares outstanding. The tangible equity to assets ratio amounted to 7.9% on December 31, 2013, as compared to 8.1% on December 31, 2012. The Company declared a common dividend of $.18 per share during the quarter. Based on the December 31, 2013 closing stock price of $19.00 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 $596 million as of December 31, 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