CSB Bancorp (CSBB) 8-K CSB Bancorp, Inc. Reports First Quarter Earnings

Exhibit 99.1

CSB BANCORP, INC. REPORTS FIRST QUARTER EARNINGS

First Quarter Highlights

	Quarter Ended			Quarter Ended
	March 31, 2012			March 31, 2011
Diluted earnings per share	$	.39		$	.33
Net Income	$	1,055,000		$	896,000
Return on average common equity		8.46	%		7.67	%
Return on average assets		0.77	%		0.80	%

Millersburg, Ohio – April 24, 2012 – CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced first quarter 2012 net income of $1.1 million or $.39 per basic and diluted share, as compared to $896 thousand or $.33 per basic and diluted share for the same period in 2011.

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 8.46% and 0.77%, respectively, compared with 7.67% and 0.80% for the first quarter of 2011.

Eddie Steiner, President and CEO commented, “We are pleased that first quarter net income was 18% above the year ago level. Loan demand has increased in both commercial and consumer segments, although businesses and individuals on the whole are maintaining a cautious posture by borrowing less and continuing to grow deposit balances. Credit quality within our loan portfolio continues to improve, allowing more-normalized provisioning for future loan losses.”

Revenue totaled $5.3 million for the first quarter of 2012, an increase of 12% from the prior-year first quarter. Increases were reflected in both net interest income and other income. First quarter net interest income on a fully tax equivalent basis was $4.4 million, a $385 thousand or 10% increase over the first quarter of 2011. Other income totaled $948 thousand in first quarter 2012, an increase of $187 thousand or 25% compared to first quarter 2011.

Non-interest expense amounted to $3.5 million during the quarter, an increase of $424 thousand or 14% from first quarter 2011.

The Company’s first quarter efficiency ratio was 65.9% as compared to 65.3% for the same quarter in the prior year.

Federal income tax provision totaled $456 thousand for first quarter 2012, compared to $399 thousand for the same quarter in 2011. The quarterly provisions reflect effective tax rates of 30% and 31%, respectively.

Total assets amounted to $561 million on March 31, 2012, up $10 million or 1.7% from December 31, 2011. Net loans increased to $327 million, up $7 million or 2.2% in the quarter, while securities balances of $128 million decreased $0.4 million or 0.3% from the prior quarter-end.

Average total assets during the quarter amounted to $552 million, an increase of $101 million or 22% above the same quarter of the prior year. Average loan balances of $327 million increased $8 million from the prior year first quarter, and average securities balances of $127 million increased $41 million or 48% as compared to first quarter 2011.

Average commercial loan balances, including commercial real estate, increased $6.2 million or 3% from the prior quarter. Average residential mortgage balances, including home equity line balances, increased by $1.4 million or 1% during the quarter. Average consumer credit balances declined $70 thousand or 1% versus the same quarter of the prior year.

Net charge-offs for the quarter totaled $41 thousand, or 0.05% of average loans on an annualized basis, as compared to $283 thousand, or 0.36% for first quarter 2011.

Nonperforming assets totaled $3.3 million or 0.99% of total loans plus other real estate at March 31, 2012 as compared to $3.5 million or 1.08% on December 31, 2011 and $3.9 million or 1.22% at March 31, 2011. Delinquent loan balances as of March 31, 2012 amounted to 1.57% of total loans as compared to 2.04% on December 31, 2011 and 1.87% at March 31, 2011.

The Company funded $206 thousand in loan loss provision during the quarter as compared to $280 thousand during the prior year’s quarter. The allowance for loan losses amounted to 1.28% of total loans on March 31, 2012 as compared to 1.25% at March 31, 2011. The ratio of the allowance for loan losses to nonperforming loans stood at 130% on March 31, 2012 as compared to 117% and 103% at December 31, and March 31, 2011, respectively.

Deposit balances totaled $450 million at quarter-end, an increase of $7 million or 1.5% from December 31, 2011 and an increase of $102 million or 29% from prior year’s quarter-end. The majority of the increase is attributable to deposits acquired with the Wooster branch acquisition during fourth quarter 2011. Organic deposit growth without the acquired deposits amounted to $28 million between March 31, 2012 and March 31, 2011 with noninterest bearing, NOW, money market and savings account balances growing and time deposit balances declining due to the low interest rate environment.

The average balance of securities sold under repurchase agreement during the first quarter grew by $8 million or 26% above the average for the same period in the prior year. These repurchase agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts. Average advances from the Federal Home Loan Bank (“FHLB”) decreased $4 million or 16% from the prior year’s quarter as maturing borrowings have been paid down, funded by reducing average balances of Fed funds sold and interest bearing deposits with other banks.

Shareholders’ equity totaled $49.9 million on March 31, 2012 with 2.7 million common shares outstanding at year-end. The Company’s capital position remains strong, with tangible equity to assets approximating 8% on March 31, 2012 and December 31, 2011. The Company declared a common dividend of $.18 per share during the quarter. Based on the March 31, 2012 closing stock price of $17.75 per share, the Company’s annual dividend yield approximates 4.1%.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $561 million as of March 31, 2012. CSB provides a wide 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, Tuscarawas, Wayne 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

330-763-2873

paula.meiler@csb1.com

Exhibit 99.1

CSB BANCORP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands except per share data)

	Quarters
	2012			2011			2011			2011			2011
EARNINGS	1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Net interest income FTE (a)	$	4,380		$	4,280		$	4,163		$	4,158		$	3,995
Provision for loan losses		206			240			240			190			280
Other income		948			920			1,045			784			761
Other expenses		3,544			3,748			3,460			3,283			3,120
FTE adjustment (a)		67			67			66			62			61
Net income		1,055			820			999			972			896
Diluted earnings per share		0.39			0.30			0.37			0.35			0.33
PERFORMANCE RATIOS
Return on average assets (ROA)		0.77	%		0.61	%		0.87	%		0.87	%		0.80	%
Return on average common equity (ROE)		8.46	%		6.58	%		8.04	%		8.06	%		7.67	%
Net interest margin FTE (a)		3.38	%		3.38	%		3.83	%		3.93	%		3.78	%
Efficiency ratio		65.90	%		71.47	%		69.60	%		66.13	%		65.29	%
Number of full-time equivalent employees		157			154			144			143			142
MARKET DATA
Book value/common share	$	18.25		$	18.07		$	17.99		$	17.75		$	17.35
Period-end common share mkt value		17.75			16.75			15.00			15.50			15.20
Market as a % of book		97.26	%		92.70	%		83.38	%		87.32	%		87.61	%
Price-to-earnings ratio		12.59			12.41			10.71			11.48			11.34
Cash dividends/common share	$	0.18		$	0.18		$	0.18		$	0.18		$	0.18
Common stock dividend payout ratio		46.15	%		60.00	%		48.65	%		51.43	%		54.55	%
Average basic common shares		2,734,799			2,734,799			2,734,799			2,734,799			2,734,799
Average diluted common shares		2,735,611			2,735,229			2,734,799			2,734,831			2,734,812
Period end common shares outstanding		2,734,799			2,734,799			2,734,799			2,734,799			2,734,799
Common shares repurchased		0			0			0			0			0
Common stock market capitalization	$	48,543		$	45,808		$	41,022		$	42,389		$	41,569
ASSET QUALITY
Gross charge-offs	$	79		$	328		$	192		$	178		$	316
Net charge-offs (recoveries)		41			275			178			164			283
Allowance for loan losses		4,246			4,082			4,116			4,054			4,028
Nonperforming assets (NPAs)		3,266			3,500			4,000			3,974			3,943
Net charge-off/average loans ratio		0.05	%		0.34	%		0.22	%		0.21	%		0.36	%
Allowance for loan losses/period-end loans		1.28			1.26			1.31			1.28			1.25
NPAs/loans and other real estate		0.99			1.08			1.27			1.25			1.22
Allowance for loan losses/nonperforming loans		130.20			116.96			117.77			115.30			102.93
CAPITAL & LIQUIDITY
Period-end tangible equity to assets		7.96	%		8.01	%		10.33	%		10.38	%		10.23	%
Average equity to assets		9.08			9.33			10.84			10.80			10.49
Average equity to loans		15.33			15.46			15.60			15.13			14.82
Average loans to deposits		73.87			75.78			90.07			91.77			91.44
AVERAGE BALANCES
Assets	$	552,407		$	530,049		$	454,685		$	448,205		$	451,666
Earning assets		520,802			502,198			431,271			424,925			428,686
Loans		327,203			319,852			315,750			319,906			319,646
Deposits		442,973			422,094			350,577			348,601			349,574
Shareholders’ equity		50,147			49,454			49,265			48,389			47,387
ENDING BALANCES
Assets	$	560,803		$	551,233		$	457,849		$	449,552		$	445,361
Earning assets		526,942			522,410			435,806			427,281			422,793
Loans		331,353			324,182			313,980			316,581			322,017
Deposits		450,207			443,553			354,856			347,258			348,209
Shareholders’ equity		49,918			49,429			49,191			48,538			47,457

NOTES:

(a) — Net Interest income on a fully tax-equivalent ("FTE") basis restates interest on tax-exempt securities and loans as if such interest were subject to federal income tax at the statutory rate. Net interest income on an FTE basis differs from net interest income under U.S. generally accepted accounting principles.

CSB BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

dollars in thousands, except per share data

	March 31,			March 31,
	2012			2011
ASSETS
Cash and cash equivalents
Cash and due from banks	$	12,855		$	9,792
Interest-earning deposits in other banks		67,026			11,898
Federal funds sold		—			310
Total cash and cash equivalents		79,881			22,000
Securities
Available-for-sale, at fair-value		122,639			83,085
Restricted stock, at cost		5,463			5,463
Total securities		128,102			88,548
Loans held for sale		461			20
Loans		331,353			322,017
Less allowance for loan losses		4,246			4,028
Net loans		327,107			317,989
Goodwill and core deposit intangible		5,729			2,116
Bank owned life insurance		8,113			2,987
Premises and equipment, net		8,413			7,754
Accrued interest receivable and other assets		2,997			3,947
TOTAL ASSETS	$	560,803		$	445,361
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	87,271		$	60,325
Interest-bearing		362,936			287,884
Total deposits		450,207			348,209
Short-term borrowings		41,717			28,382
Other borrowings		17,009			19,707
Accrued interest payable and other liabilities		1,952			1,606
Total liabilities		510,885			397,904
Shareholders’ equity
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares in 2012 and 2011		18,629			18,629
Additional paid-in capital		9,994			9,994
Retained earnings		24,954			23,077
Treasury stock at cost—245,803 shares in 2012 and 2011		(5,015	)		(5,015	)
Accumulated other comprehensive income		1,356			772
Total shareholders’ equity		49,918			47,457
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	560,803		$	445,361

CSB BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

dollars in thousands, except per share data

	Quarter ended
	March 31,
	2012		2011
Interest and dividend income:
Loans, including fees	$	4,252	$	4,236
Taxable securities		729		595
Nontaxable securities		112		98
Other		39		17
Total interest and dividend income		5,132		4,946
Interest expense:
Deposits		640		786
Other		179		226
Total interest expense		819		1,012
Net interest income		4,313		3,934
Provision for loan losses		206		280
Net interest income after provision for loan losses		4,107		3,654
Non-interest income
Service charges on deposits accounts		308		245
Trust services		161		160
Securities gains (losses), net		0		0
Gain on sale of loans		56		70
Other		423		286
Total non-interest income		948		761
Non-interest expenses
Salaries and employee benefits		1,963		1,763
Occupancy expense		246		219
Equipment expense		155		120
Franchise tax expense		139		135
Professional and director fees		207		159
Federal deposit insurance		87		110
Amortization of intangible assets		33		15
Other expenses		714		599
Total non-interest expenses		3,544		3,120
Income before income tax		1,511		1,295
Federal income tax provision		456		399
Net income	$	1,055	$	896
Net income per share:
Basic	$	0.39	$	0.33
Diluted	$	0.39	$	0.33

Note: Certain prior year balances have been reclassified to conform to the current year presentation.