-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AFrUNabWnUOcC1kWoYSPbnyPQH8twe78ALLeRDIUiLLT/Ufl+0otReKQCH9JEghf ji6sg8bERcNqis+Akcxepw== 0000950152-04-002979.txt : 20040419 0000950152-04-002979.hdr.sgml : 20040419 20040419151319 ACCESSION NUMBER: 0000950152-04-002979 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040419 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040419 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CSB BANCORP INC /OH CENTRAL INDEX KEY: 0000880417 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 341687530 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21714 FILM NUMBER: 04740402 BUSINESS ADDRESS: STREET 1: 6 W JACKSON ST STREET 2: P O BOX 232 CITY: MILLERSBURG STATE: OH ZIP: 44654 BUSINESS PHONE: 3306749015 MAIL ADDRESS: STREET 1: 6 WEST JACKSON STREET CITY: MILLERSBURG STATE: OH ZIP: 44654 8-K 1 l07057ae8vk.txt CSB BANCORP, INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) April 19, 2004 CSB BANCORP, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Ohio 0-21714 34-1687530 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission File Number) (I.R.S. Employer of Incorporation) Identification No.) 6 West Jackson Street, P.O. Box 232, Millersburg, Ohio 44654 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (330) 674-9015 -------------- Not Applicable - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 7. Financial Statements and Exhibits. (c) Exhibits. Exhibit Number Description of Exhibit -------------- ---------------------- 99.1 Quarterly Report of CSB Bancorp, Inc., for the quarter ended March 31, 2004 Item 12. Results of Operations and Financial Condition. On April 19, 2004, CSB Bancorp, Inc. released to shareholders its Quarterly Report for the quarter ended March 31, 2004. The text of the report is attached as Exhibit 99.1 to this Form 8-K. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CSB BANCORP, INC. Date: April 19, 2004 By: /s/ A. Lee Miller -------------------------------- Senior Vice President and Chief Financial Officer INDEX TO EXHIBITS Exhibit Number Description of Exhibit - -------------- ---------------------- 99.1 Quarterly Report of CSB Bancorp, Inc., for the quarter ended March 31, 2004 EX-99.1 3 l07057aexv99w1.txt EXHIBIT 99.1 EXHIBIT 99.1 ------------ Quarterly Report of CSB Bancorp, Inc., for the quarter ended March 31, 2004 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
MARCH 2004 2003 ---------------------------- Assets $318,260 $301,778 Net loans $215,768 $206,154 Securities $79,808 $69,240 Deposits $239,467 $233,617 Shareholders' Equity $34,948 $34,041 Net income $521 $598 Earnings per share $0.20 $0.23 Book value per outstanding share $13.22 $12.93
STOCK PERFORMANCE & DIVIDENDS - --------------------------------------------------------------------------------
TRADE PRICE CASH QUARTER ---------------------- CLOSING DIVIDEND ENDING HIGH LOW PRICE DECLARED - -------------------------------------------------------------------------------- 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 3/31/04 18.00 17.00 17.50 0.13
KEY RATIOS - --------------------------------------------------------------------------------
MARCH 2004 2003 ------------------------- Return on average assets 0.68% 0.82% Return on average equity 6.01% 7.11% Net interest margin 3.79% 3.99% Loans to deposits 91.13% 89.34% Shareholders' equity to assets 10.98% 11.28% Noninterest expense to revenue 79% 81%
COMMON STOCK PERFORMANCE [GRAPH]
DIRECTORS - -------------------------------------------------------------------------------- ROBERT K. BAKER DANIEL J. MILLER Chairman JEFFERY A. ROBB, SR. JOHN J. LIMBERT President and CEO SAMUEL M. STEIMEL EDDIE L. STEINER RONALD E. HOLTMAN JOHN R. WALTMAN J. THOMAS LANG
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 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 March 31, 2004 QUARTERLY REPORT [CSB BANCORP, INC. LOGO] CSB BANCORP, INC. TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- Dear Shareholder: Please allow me to summarize this quarter... Compared to the same period last year, assets are up by 5%, earnings are down by almost 13%, yet we increased the cash dividend by over 8%! What just happened? Numerous things are happening, all designed to strengthen and maintain the quality of your investment and the Company. Please read the actual performance comparisons and then I'll tell you "the rest of the story!" Our unaudited net income for the first quarter of 2004 totaled $521,000, or $.20 per share. These results compare to net income of $598,000 and $.23 per share for the same period in 2003. This represents a 12.9% decrease. Our quarter-end assets increased from $302 million to $318 million, representing a 5.3% increase in our balance sheet. Your Board of Directors voted to increase the cash dividend from $.12 per share to $.13 per share, which results in an 8.3% increase over a year ago. First, for the first time in over two years additional funds were added to our Allowance for Loan and Lease Losses (ALLL). We added $94,000 versus removing $71,000 out of the reserve a year ago. This has the effect of creating a pretax earnings swing of $165,000. So while we reported lower quarterly earnings, excluding this impact we would have outperformed the year ago quarter. We elected to add these funds (and anticipate doing so into the future) for several reasons. Our overall loan portfolio is up, so increasing the reserve is appropriate. Next, we have targeted a reserve percent to loans of 1.20% compared to our current 1.12%. In order to attain this number we need to either shrink loans or increase the reserve. Finally, our management of the loan portfolio called for charging some uncollectible loans against the reserve, so replenishing this reserve was warranted. Second, please note that our Non-Interest Expense to Revenue ratio (NIE/REV) has improved. Our actual non-interest expense was down almost $90,000 over the same quarter a year ago. And this occurred even though we had larger expenses to comply with new federal legislation and resulting reporting changes. The NIE/REV ratio fell from 81% a year ago to 79% this year. Our objective is to continue to reduce this ratio, and we are focused on accomplishing this task. Third, after carefully reviewing the high variable rate concentration of the asset side of our balance sheet, the bank management group presented and received board approval of a "leveraged investment purchase." In this transaction we borrowed $10 million dollars from the Federal Home Loan Bank and purchased a like amount of Federal Agency Securities. This prudent investment strategy contributed significantly to the Company's increase in size. We have locked in an attractive first year margin, and will use the additional revenue stream to increase our income. As we have mentioned previously, like most banks our Net Interest Margin (NIM) is under intense pressure. The impact of this transaction, coupled with our ongoing Asset/Liability initiatives, has resulted in an improved NIM for the first time in three quarters. As this transaction did not close until mid-March, the full benefit was not realized in the first quarter. Last, I wanted to update you on improvements in our loan portfolio. Our loan group has significantly reduced the amount of our non-performing loans. As a result, the critical ratios for non-performing loans also saw tremendous improvement. Our non-performing loans, as of March 31, 2004 were at $730,000 versus $1,259,000 at March 31, 2003. This is a 42% reduction in dollars and reduces the non-performing loans to total loans ratio to .33%! What this also reflects is that the ALLL has a 300+% coverage to non-performing versus a 200% coverage a year ago. While these type loans can experience sudden movements, we believe that these results reflect diligence on the part of our loan group, coupled with cooperation with our borrowers. In closing, I wish to express my confidence in the continued improvement of your Company. This confidence was an important part of our decision to increase the dividend payment. We have set positive practices in place, and they are beginning to generate the results to which we aspire. As always, feel free to contact me with any questions concerning the Company or our performance. JOHN J. LIMBERT President and C.E.O.
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) - -------------------------------------------------------------------------------------- (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) MARCH 31 2004 2003 --------------------------- ASSETS: Cash and due from banks .................................... $11,664 $14,200 Securities ................................................. 79,808 69,240 Net loans .................................................. 215,768 206,154 Premises & equipment, net .................................. 8,525 8,980 Other assets ............................................... 2,495 3,204 -------- -------- TOTAL ASSETS ............................................... $318,260 $301,778 ======== ======== LIABILITIES: Deposits ................................................... $239,467 $233,617 Securities sold under agreements to repurchase ............. 12,531 13,276 Federal funds purchased .................................... 11,100 4,601 Other borrowings ........................................... 19,221 15,045 Other liabilities .......................................... 993 1,198 -------- -------- TOTAL LIABILITIES .......................................... $283,312 $267,737 -------- -------- SHAREHOLDERS' EQUITY: Common stock ............................................... $16,674 $16,674 Additional paid-in capital ................................. 6,414 6,414 Retained earnings .......................................... 12,393 11,853 Treasury stock ............................................. (646) (997) Accumulated other comprehensive income ..................... 113 97 -------- -------- TOTAL SHAREHOLDERS' EQUITY ................................. $34,948 $34,041 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ................... $318,260 $301,778 ======== ========
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) - -------------------------------------------------------------------------------------- (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) THREE MONTHS ENDED MARCH 31 2004 2003 --------------------------- INTEREST INCOME: Interest & fees on loans ................................... $2,993 $3,173 Interest on securities ..................................... 672 777 Other interest income ...................................... 3 9 -------- -------- TOTAL INTEREST INCOME ...................................... $3,668 $3,959 -------- -------- INTEREST EXPENSE: Interest on deposits ....................................... 835 1,027 Other interest expense ..................................... 137 199 -------- -------- TOTAL INTEREST EXPENSE ....................................... $972 $1,226 -------- -------- Net interest income .......................................... 2,696 2,733 Provision (credit) for loan losses ......................... 94 (71) -------- -------- Net interest income after provision (credit) for loan losses . 2,602 2,804 Noninterest income ........................................... 499 468 Noninterest expense .......................................... 2,515 2,593 -------- -------- Net income before federal income taxes ....................... 586 679 Federal income tax provision ................................. 65 81 -------- -------- NET INCOME ................................................... $521 $598 ======== ======== EARNINGS PER SHARE ........................................... $0.20 $0.23 ======== ========
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