EXHIBIT 99.1
Quarterly Report of CSB Bancorp, Inc., for the quarter ended December 31, 2003
December 31,2003
Quarterly Report
[CSB BANCORP GRAPHIC]
FINANCIAL HIGHLIGHTS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
DECEMBER
2003 2002
---- ----
Assets $306,180 $304,713
Net loans 210,796 197,109
Securities 67,773 73,088
Deposits 248,958 239,976
Shareholders' Equity 34,718 33,742
Net income 2,060 1,923
Earnings per share 0.78 0.73
Book value per outstanding share 13.13 12.83
KEY RATIOS
DECEMBER
2003 2002
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Return on average assets 0.68% 0.65%
Return on average equity 6.00% 5.76%
Loan to deposit 85.66% 83.26%
Equity to assets 11.34% 11.07%
NIE to revenue 83% 90%
DIRECTORS
ROBERT K. BAKER DANIEL J. MILLER
Chairman
JEFFREY A. ROBB, SR.
JOHN J. LIMBERT
President and CEO SAMUEL M. STEIMEL
RONALD E. HOLTMAN EDDIE L. STEINER
J. THOMAS LANG JOHN R. WALTMAN
EXECUTIVE OFFICERS
JOHN J. LIMBERT
President and CEO
RICK L. GINTHER
Senior Vice President
Chief Lending Officer
PAUL D. GREIG
Senior Vice President
Chief Operation/Information Officer
A. LEE MILLER
Senior Vice President
Chief Financial Officer
STOCK PERFORMANCE & DIVIDENDS
TRADE PRICE CASH
QUARTER CLOSING DIVIDEND
ENDING HIGH LOW PRICE DECLARED
------ ---- --- ----- --------
3/31/02 $20.00 $16.75 $19.50 $0.05
6/30/02 19.85 18.75 18.06 0.05
9/30/02 19.15 17.00 17.00 0.10
12/31/02 17.50 16.05 16.05 0.10
3/31/03 18.50 16.50 17.10 0.12
6/30/03 18.00 17.00 17.00 0.12
9/30/03 17.50 15.50 17.50 0.12
12/31/03 17.55 17.00 17.00 0.12
ADDITIONAL STOCK INFORMATION
STOCK LISTING
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:
A. Lee Miller, CFO
CSB Bancorp, Inc.
6 West Jackson
Millersburg, OH 44654
(330) 674-9015 or
(800) 654-9015
TO OUR SHAREHOLDERS
Dear Shareholder:
Our 2003 fourth quarter operating results were 36% better than the same period
in 2002! And the full year comparison shows a 7% increase in net income. Our
deposits increased year to year by 3.7%, and we used these funds to repay
Federal Home Loan Bank borrowings rather than investing in lower yielding
securities. Our loan portfolio grew almost 7% and the quality of the portfolio
is sound. As a result of these improvements, our dividends declared (including
your recently received $0.12 per share payment) increased to $0.48 per share
versus $0.30 per share in 2002. This is a 60% increase!
While these results are a marked improvement over the prior year, when compared
to virtually all of our peers, the results are not reflective of where we want
to be. For example, our Return on Assets (ROA) of .68% is about half of our
goal. Likewise, our Non-Interest Expense to Revenue Ratio (NIE/Rev) averaged 83%
while the industry average is generally less than 60%.
We believe that 2003 ended the "fix-it" chapter for CSB. We are positioned to
grow properly and profitably. Sound loan management will drive revenue growth as
we partner with prudent business and consumer clients. Our operating
efficiencies will continue to improve and reflect the numerous programs
initiated in late 2003 as well as those being implemented in 2004. We've found a
way to extend our banking centers' same day operating hours and will make this
exciting change in February. We will seek opportunities to wisely invest the
capital we have accumulated.
As we prepare to celebrate the company's 125th anniversary, we thank you for the
confidence with which you have entrusted us. We pledge to reward you with
returns you can be proud of and that have been acquired via our disciplined
management approach.
ROBERT K. BAKER JOHN J. LIMBERT
Chairman President & Chief Executive Officer
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
DECEMBER 31
2003 2002
ASSETS:
Cash and due from banks $ 12,474 $ 12,272
Federal funds sold 4,727 10,293
Securities 67,773 73,088
Net loans 210,796 197,109
Premises & equipment, net 8,563 8,362
Other assets 1,847 3,589
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TOTAL ASSETS $306,180 $304,713
======== ========
LIABILITIES:
Deposits $248,958 $239,976
Securities sold under agreements to repurchase 11,859 14,448
Other borrowings 9,512 15,380
Other liabilities 1,133 1,167
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TOTAL LIABILITIES $271,462 $270,971
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SHAREHOLDERS' EQUITY:
Common stock $ 16,674 $ 16,674
Additional paid-in capital 6,413 6,413
Retained earnings 12,215 11,621
Treasury stock (645) (1,088)
Accumulated other comprehensive income 61 122
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TOTAL SHAREHOLDERS' EQUITY $34,718 $ 33,742
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $306,180 $304,713
======== ========
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED DECEMBER 31 TWELVE MONTHS ENDED DECEMBER 31
2003 2002 2003 2002
INTEREST INCOME:
Interest & fees on loans $2,991 $3,217 $12,453 $12,639
Interest on securities 696 830 2,925 3,849
Other interest income 16 40 36 212
------ ------ ------- -------
TOTAL INTEREST INCOME $3,703 $4,087 $15,414 $16,700
------ ------ ------- -------
INTEREST EXPENSE:
Interest on deposits 916 1,153 3,849 5,764
Other interest expense 159 207 782 703
------ ------ ------- -------
TOTAL INTEREST EXPENSE $1,075 $1,360 $ 4,631 $ 6,467
------ ------ ------- -------
Net interest income 2,628 2,727 10,783 10,233
Credit for loan losses 0 25 51 587
------ ------ ------- -------
Net interest income after credit for loan losses 2,628 2,752 10,834 10,820
Total other income 521 466 2,155 2,037
2,545 2,855 10,799 10,999
------ ------ ------- -------
Total other expense
Net income before federal income taxes 604 363 2,190 1,858
Federal income tax provision (credit) 52 (43) 130 (65)
------ ------ ------- -------
NET INCOME $ 552 $ 406 $ 2,060 $ 1,923
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EARNINGS PER SHARE $ 0.21 $ 0.15 $ 0.78 $ 0.73
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