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FINANCIAL HIGHLIGHTS |
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) |
AT OR FOR THE THREE MONTHS ENDED MARCH 31 2009 2008 |
Assets $422,390 $344,808 |
Net loans $316,023 $244,293 |
Securities $70,514 $66,387 |
Deposits $304,591 $247,029 |
Shareholders’ equity $44,392 $37,148 |
Net income $ 896 $1,002 |
Earnings per share $ 0.33 $ 0.41 |
Book value per outstanding share $ 16.23 $15.22 |
KEY RATIOS |
AT OR FOR THE THREE MONTHS ENDED MARCH 31 2009 2008 |
Return on average assets 0.86% 1.17% Return on average equity 8.20% 10.89% Net interest margin (tax equivalent) 3.99% 4.19% Net loans to deposits 103.75% 98.89% Allowance for loan loss to total loans 1.07% 1.09% Period-end tangible equity to assets 10.09% 10.77% Efficiency ratio 67.73% 62.55% |
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 |
CASH QUARTER TRADE PRICE CLOSING DIVIDEND ENDING HIGH LOW PRICE DECLARED |
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 |
12/31/08 16.00 14.00 15.00 0.18 |
3/31/09 14.50 12.25 14.00 0.18 |
ADDITIONAL STOCK INFORMATION |
Common: |
Symbol — CSBB.OB |
STOCK TRANSFER |
Registrar & Transfer Company |
Attn: Investor Relations |
10 Commerce Drive |
Cranford, NJ 07016 |
(800) 368-5948 |
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) 674-9015 or |
(800) 654-9015 |
“Remember to call CSB for all your financial needs, whether to borrow, save or invest.” |
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DEAR FELLOW SHAREHOLDER |
During this turbulent economic time, we are pleased to report CSB remains a strong, stable and secure community banking company. Net income for the first quarter totaled $896 thousand, or $0.33 per share. This reported net income is less than last year’s first quarter total of just over $1 million, or $0.41 per share. However, the prior year included a one-time gain from the sale of the Company’s credit card portfolio. Excluding that nonrecurring gain, this year’s first quarter net income increased by $68 thousand on a year-over-year comparison. In addition, the 2009 first quarter net income is the second highest the Company has reported for a first quarter in the past nine years, exceeded only by last year’s total. |
This quarter’s results represent the first full reporting period since our acquisition of Indian Village Bancorp, Inc. We are pleased to report that the acquired group of banking centers posted a positive contribution to Company earnings during the first quarter. Systems conversions, product standardization, employee training and acclimation, and acceptance by customers and former Indian Village shareholders have all proceeded smoothly. Our primary operational focus remaining from the acquisition is improving the credit quality of the loan portfolio. The second major emphasis with remaining work involves conforming the acquired deposits, borrowings and investments to CSB’s targets for yield, mix and quality. We anticipate that these efforts will be ongoing through 2009 and at least a portion of 2010. We foresee a number of earnings headwinds for the remainder of 2009, and likely into 2010. Credit losses, which have been remarkably low for the Company’s last six fiscal years, increased to a net annualized rate of 0.30% during the first quarter and are anticipated to remain elevated for the coming year. FDIC has increased the deposit insurance premium rates charged to banks and announced a pending special assessment on the banking industry. The contracting economy is softening demand for loans and certain fee-based services. Unemployment continues to rise in our four county primary market area, having increased from approximately 6% to approximately 10% in the past year. |
Still, CSB’s strong capital and liquidity position affords continued stability and security, and provides the foundation needed to effectively meet the financial service needs of the communities we serve. This strength also enables the Company to consider opportunities to further solidify our position within current and target markets. CSB’s management and board remain committed to safe and sound banking practices and to prudent growth as opportunities arise. We will continue to carefully assess such opportunities as part of our overall efforts to bring increasing value to our shareholders. |
In spite of the various factors creating earnings challenges, the above-mentioned first quarter results demonstrate CSB’s core earnings momentum. Based on this performance, the board of directors declared a first quarter dividend of $0.18 per share, equaling the dividend level of the past two years. |
Thank you for your continued support 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) MARCH 31 ASSETS: 2009 2008 |
Cash and due from banks $19,551 $10,486 |
Federal funds sold 0 14,300 |
Securities 70,514 66,387 |
Net loans 316,023 244,293 |
Premises & equipment, net 8,369 7,235 |
Other assets 7,933 2,107 |
TOTAL ASSETS $422,390 $344,808 LIABILITIES: |
Deposits $304,591 $247,029 |
Securities sold under agreements to repurchase 20,417 22,604 |
Short-term borrowings 0 2,000 |
Other borrowings 50,590 33,875 |
Other liabilities 2,400 2,152 |
TOTAL LIABILITIES $377,998 $307,660 SHAREHOLDERS’ EQUITY: |
Common stock $18,629 $16,674 |
Additional paid-in capital 9,988 6,456 |
Retained earnings 20,128 18,553 |
Treasury stock (5,015) (4,713) |
Accumulated other comprehensive income 662 178 |
TOTAL SHAREHOLDERS’ EQUITY $44,392 $37,148 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $422,390 $344,808 |
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) |
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) THREE MONTHS ENDED MARCH 31 INTEREST INCOME: 2009 2008 |
Interest and fees on loans $4,621 $4,413 |
Interest on securities 956 849 |
Other interest income 3 22 |
TOTAL INTEREST INCOME5,580 5,284 |
INTEREST EXPENSE: |
Interest on deposits 1,163 1,428 |
Other interest expense 523 476 |
TOTAL INTEREST EXPENSE1,686 1,904 |
Net interest income 3,894 3,380 |
Provision for loan losses 241 107 |
Net interest income after provision for loan losses 3,653 3,273 |
Noninterest income 796 955 |
Noninterest expense 3,129 2,728 |
Net income before federal income taxes 1,320 1,500 |
Federal income tax provision 424 498 |
NET INCOME $ 896 $1,002 EARNINGS PER SHARE $ 0.33 $ 0.41 |