Exhibit 99.2
| FINANCIAL HIGHLIGHTS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) AT OR FOR THE NINE MONTHS ENDED SEPTEMBER 30 2008 2007 Assets $343,743 $330,121 Net loans $253,562 $243,072 Securities $70,638 $66,159 Deposits $245,953 $253,594 Shareholders’ equity $37,512 $35,948 Net income $2,770 $2,634 Earnings per share $1.14 $1.07 Book value per outstanding share $15.49 $14.60 KEY RATIOS AT OR FOR THE NINE MONTHS ENDED SEPTEMBER 30 2008 2007 Return on average assets 1.08% 1.08% Return on average equity 9.91% 9.92% Net interest margin (tax equivalent) 4.15% 4.36% Net loans to deposits 103.09% 95.85% Allowance for loan loss to total loans 1.08% 1.04% Shareholders’ equity to total assets 10.91% 10.89% Efficiency ratio 64.03% 64.72% DIRECTORS Robert K. Baker Jeffery A. Robb, Sr. Ronald E. Holtman Eddie L. Steiner J. Thomas Lang John R. Waltman Chairman Daniel J. Miller EXECUTIVE OFFICERS Eddie L. Steiner President and Chief Executive Officer Rick L. Ginther President, The Commercial & Savings Bank Paul D. Greig Chief Operations/Information Officer Paula J. Meiler Chief Financial Officer STOCK PERFORMANCE & DIVIDENDS TRADE PRICE CASH QUARTER CLOSING DIVIDEND ENDING HIGH LOW PRICE DECLARED 12/31/06 20.25 18.00 19.00 0.16 3/31/07 19.05 17.50 17.57 0.18 6/30/07 18.25 17.42 17.75 0.18 9/30/07 19.00 15.95 17.00 0.18 12/31/07 17.75 15.40 17.75 0.18 3/31/08 17.90 15.75 16.14 0.18 6/30/08 18.00 15.75 15.75 0.18 9/30/08 16.25 14.40 15.25 0.18 QUARTER ENDING ADDITIONAL STOCK INFORMATION STOCK LISTING Common: Symbol — CSBB.OB STOCK TRANSFER Registrar & Transfer Company Attn: Investor Relations 10 Commerce Drive Cranford, NJ 07016 (800) 3685948 Copies of CSB Bancorp, Inc. S.E.C. Filings may be obtained by writing: Paula J. Meiler, CFO CSB Bancorp, Inc. 91 North Clay Street Millersburg, OH 44654 (330) 6749015 or (800) 6549015 “Remember to call CSB for all your financial needs, whether to borrow, save or invest.” |
| DEAR FELLOW SHAREHOLDER CSB Bancorp, Inc. continues to deliver solid financial performance in spite of turmoil in the national and global financial markets. With a very strong capital position, substantial liquidity, and very high asset quality, we are committed to safety and soundness while meeting the financial needs of the communities we serve and delivering a fair return to our shareholders. CSB’s net earnings totaled $890 thousand in the third quarter, or $0.37 per share. For the nine months ended September 30, net income of $2.77 million is ahead of the prior year by $136 thousand, or $0.07 per share. The Company has no direct exposure to the types of problematic loans and investments that have created the current crisis in the national and global financial markets. Net loan chargeoffs during the first nine months of the year have been very low and nonperforming asset levels are also well below our historical norms. As always, we remain vigilant for any signs of deterioration in the asset quality of our loan and investment portfolios. We have made excellent progress in planning for CSB’s acquisition of Indian Village Bancorp and its wholly owned subsidiary Indian Village Community Bank. We anticipate finalizing the transaction on Friday, October 31, 2008. The following day, banking centers in Gnadenhutten, New Philadelphia and North Canton will open for business as Commercial & Savings Bank locations. These three new markets will provide future growth opportunities for CSB beyond our current and newly acquired deposits and loans in Tuscarawas and Stark counties. Our view of the general economy is that recessionary conditions will likely remain for the balance of 2008 and most or all of 2009. While CSB’s markets are not immune to economic slowdown, we continue to provide the communities we serve with liquidity needed to sustain economic activity and growth. In return, our local economy provides the Company with a diversified customer base that, coupled with CSB’s broad range of financial services, affords some degree of earnings protection during economic downturns. The national and global financial crisis will eventually lead to significant changes in the banking industry. Over the next few years, government officials will reshape the regulatory landscape and a number of weaker financial institutions will become unable to sustain their present form. Difficult economic and regulatory environments present challenges for any organization, including community banks. However, CSB’s financial position provides strength for periods such as these, and in fact, affords the means to consider further opportunities for enhancing shareholder value. CSB’s board and management will continue to evaluate such opportunities from the disciplined perspective of safe and sound banking practices. On behalf of the board of directors, we enclose the third quarter dividend of $0.18 per share and thank you for being a shareholder of CSB Bancorp, Inc. Sincerely, EDDIE L. STEINER JOHN R. WALTMAN President and CEO Chairman CSB Bancorp, Inc. CSB Bancorp, Inc. CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) SEPTEMBER 30 2008 2007 ASSETS: Cash and due from banks $8,623 $11,273 Federal funds sold 1,800 0 Securities 70,638 66,159 Net loans 253,562 243,072 Premises & equipment, net 7,074 7,398 Other assets 2,046 2,219 TOTAL ASSETS $343,743 $330,121 LIABILITIES: Deposits $245,953 $253,594 Securities sold under agreements to repurchase 22,757 21,384 Shortterm borrowings 2,000 0 Fed funds purchased 0 10,400 Other borrowings 33,682 7,108 Other liabilities 1,839 1,687 TOTAL LIABILITIES $306,231 $294,173 SHAREHOLDERS’ EQUITY: Common stock $16,674 $16,674 Additional paidin capital 6,464 6,446 Retained earnings 19,449 17,552 Treasury stock (5,015) (4,349) Accumulated other comprehensive loss (60) (375) TOTAL SHAREHOLDERS’ EQUITY $37,512 $35,948 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $343,743 $330,121 CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED SEPTEMBER 30 NINE MONTHS ENDED SEPTEMBER 30 2008 2007 2008 2007 INTEREST INCOME: Interest and fees on loans $4,073 $4,633 $12,503 $13,433 Interest on securities 860 784 2,537 2,404 Other interest income 33 1 103 16 TOTAL INTEREST INCOME 4,966 5,418 15,143 15,853 INTEREST EXPENSE: Interest on deposits 1,069 1,609 3,663 4,763 Other interest expense 457 419 1,375 1,170 TOTAL INTEREST EXPENSE 1,526 2,028 5,038 5,933 Net interest income 3,440 3,390 10,105 9,920 Provision for loan losses 107 151 262 353 Net interest income after provision for loan losses 3,333 3,239 9,843 9,567 Noninterest income 709 762 2,344 2,305 Gain (loss) on securities (35) 0 (35) 5 Noninterest expense 2,663 2,722 8,007 7,988 Net income before federal income taxes 1,344 1,279 4,145 3,889 Federal income tax provision 454 416 1,375 1,255 NET INCOME $890 $863 $2,770 $2,634 EARNINGS PER SHARE $0.37 $0.35 $1.14 $1.07 |