EX-99.2 3 l39442exv99w2.htm EX-99.2 exv99w2
Exhibit 99.2
FINANCIAL HIGHLIGHTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
                   
    AT OR FOR THE THREE MONTHS
    ENDED MARCH 31
    2010     2009
           
Assets
  $ 435,622       $ 422,390  
Net loans
  $ 306,543       $ 316,023  
Securities
  $ 73,727       $ 70,514  
Deposits
  $ 326,204       $ 304,591  
Shareholders’ equity
  $ 46,171       $ 44,392  
Net income
  $ 737       $ 896  
Earnings per share
  $ 0.27       $ 0.33  
Book value per outstanding share
  $ 16.88       $ 16.23  
KEY RATIOS
                   
    AT OR FOR THE THREE MONTHS
    ENDED MARCH 31
    2010     2009
           
Return on average assets
    0.67 %       0.86 %
Return on average equity
    6.44 %       8.20 %
Net interest margin (tax equivalent)
    3.78 %       3.99 %
Net loans to deposits
    93.97 %       103.75 %
Allowance for loan loss to total loans
    1.40 %       1.07 %
Period-end tangible equity to assets
    10.15 %       10.09 %
Efficiency ratio
    64.83 %       67.37 %
DIRECTORS
     
Robert K. Baker
  Jeffery A. Robb, Sr.
Ronald E. Holtman   Eddie L. Steiner
J. Thomas Lang   John R. Waltman
Daniel J. Miller   Chairman
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
 
 
    6/30/08       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  
 
    6/30/09       17.00       13.26       16.00       0.18  
 
    9/30/09       16.00       14.25       15.20       0.18  
 
    12/31/09       15.50       14.57       15.25       0.18  
 
    3/31/10       15.95       14.05       14.60       0.18  
(CSB GRAPHIC)
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:
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.”
(CSB  GRAPHIC)

 


 

DEAR FELLOW SHAREHOLDER
We are pleased to enclose with this letter a first quarter dividend of $0.18 per share. CSB has sustained this dividend level for the past three years, while many banks have reduced or suspended the payment of dividends.
The Company remains profitable, and our capital and liquidity levels are strong. However, revenue generation has been impacted by soft loan demand in our markets, and by the prevailing environment of low interest rates on loans and investment securities. Higher provisions for potential loan losses also curtailed this quarter’s earnings.
Signs of improvement in national economic conditions are becoming apparent. Still, the overall pace of recovery may be frustratingly slow during 2010 because of very high levels of unemployment, mortgage delinquencies and home foreclosures.
The regulatory structure that oversees banking activities is under intense government scrutiny in an effort to preclude any repeat of the recent financial crisis. Additional regulations are a virtual certainty, along with increases in the cost of doing business as a bank.
The good news about this public policy review is there seems to be growing recognition in Congress and the media that community banks did not cause the economic crisis, and further, community banks are vital to keeping local economies viable and growing. We have a deep appreciation for our shareholders and customers, who share this recognition, and who actively support our community banking efforts. We strive to provide high value in return for that support.
Our business model depends to a large extent on sustainable economic activity within the markets we serve. Local economic activity provides our primary source of funding through customer deposits, and is a key determinant of loan demand and credit quality. Many households and businesses in our markets have been adversely impacted by the recession. Loan delinquencies have increased and we are doing what we can to assist struggling borrowers. We expect that it will take some time for loan demand and credit conditions to return to pre-recession levels.
Overall, we are cautiously optimistic that 2010 will transition into better economic conditions. We remain focused on excellence in customer service, safe and sound banking practices, and increasing value for our shareholders. It is through these efforts that we act responsibly as a corporate citizen, doing our part in restoring the American economy and helping to build and maintain strong communities.
On behalf of the Board of Directors,
     
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
    2010     2009
           
ASSETS:
                 
Cash and due from banks
  $ 36,682       $ 19,551  
Securities
    73,727         70,514  
Loans held for sale
    670         0  
Net loans
    306,543         316,023  
Premises & equipment, net
    8,224         8,369  
Other assets
    9,776         7,933  
 
             
TOTAL ASSETS
  $ 435,622       $ 422,390  
 
             
 
                 
LIABILITIES:
                 
Deposits
  $ 326,204       $ 304,591  
Securities sold under agreements to repurchase
    29,621         20,417  
Other borrowings
    32,210         50,590  
Other liabilities
    1,416         2,400  
 
             
TOTAL LIABILITIES
  $ 389,451       $ 377,998  
 
                 
SHAREHOLDERS’ EQUITY:
                 
Common stock
  $ 18,629       $ 18,629  
Additional paid-in capital
    9,994         9,988  
Retained earnings
    21,391         20,128  
Treasury stock
    (5,015 )       (5,015 )
Accumulated other comprehensive income
    1,172         662  
 
             
TOTAL SHAREHOLDERS’ EQUITY
  $ 46,171       $ 44,392  
 
             
 
                 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 435,622       $ 422,390  
 
             
 
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
   
    THREE MONTHS ENDED MARCH 31
    2010     2009
           
INTEREST INCOME:
                 
Interest and fees on loans
  $ 4,302       $ 4,621  
Interest on securities
    835         956  
Other interest income
    19         3  
 
             
TOTAL INTEREST INCOME
    5,156         5,580  
 
             
 
                 
INTEREST EXPENSE:
                 
Interest on deposits
    876         1,163  
Other interest expense
    399         523  
 
             
TOTAL INTEREST EXPENSE
    1,275         1,686  
 
             
Net interest income
    3,881         3,894  
Provision for loan losses
    519         241  
 
             
Net interest income after provision for loan losses
    3,362         3,653  
 
             
Noninterest income
    731         796  
Noninterest expense
    3,041         3,129  
 
             
Net income before federal income taxes
    1,052         1,320  
Federal income tax provision
    315         424  
 
             
NET INCOME
  $ 737       $ 896  
 
             
EARNINGS PER SHARE
  $ 0.27       $ 0.33