EX-99.1 3 l05310aexv99w1.txt EXHIBIT 99.1 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 ---- ---- 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 -------- -------- 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 -------- -------- TOTAL LIABILITIES $271,462 $270,971 -------- -------- 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 -------- -------- TOTAL SHAREHOLDERS' EQUITY $34,718 $ 33,742 -------- -------- 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 ====== ====== ======= ======= EARNINGS PER SHARE $ 0.21 $ 0.15 $ 0.78 $ 0.73 ====== ====== ======= =======