EX-99.1 2 l13387aexv99w1.htm EXHIBIT 99.1 PRESS RELEASE AND QUARTERLY REPORT EXHIBIT 99.1
 

Exhibit 99.1

For Immediate Release
CSB Bancorp, Inc. Reports Increase In First Quarter Net Income

MILLERSBURG, OH – (BUSINESS WIRE) – April 18, 2005 – CSB Bancorp, Inc., (OTC BB: CSBB.OB), announced an increase in net income for the first quarter of 2005 compared to the same period last year.

Net income for the three-month period ended March 31, 2005, stood at $667,000 compared to $521,000 for the first quarter of 2004, a 28% increase. Earnings per share rose five cents, to $.25 from $.20, respectively, a 25% increase.

“These results reflect the continued improvements being made across our Company. We believe earnings improvements are sustainable and driven by prudent community-based deployment of the deposits we are entrusted with,” stated John J. Limbert, President and Chief Executive Officer of CSB Bancorp, Inc.

First Quarter Highlights:

  •   For the quarter just ended, net interest income of $2,929,000 exceeded $2,696,000 recorded for the quarter ended March 31, 2004. The increase was primarily the result of volume and rate increases on average earning assets exceeding the yield and volume increases paid on interest-bearing liabilities.
 
  •   Noninterest income for the quarter increased $60,000. The two items making up the majority of this increase were an increase of $31,000 in core service charges and fees and a $23,000 increase in trust income.
 
  •   A gain of $247,000 on the sale of securities was recognized in the first quarter, compared to $26,000 recorded for the quarter ended March 31, 2004.
 
  •   Noninterest expenses increased $162,000 for the quarter, represented by increases in personnel benefits, Sarbanes Oxley compliance, two robberies and the subsequent increased physical security costs related to the branch network.
 
  •   The federal income tax provision increased $194,000 for the quarter, a result of $340,000 increase in net income before taxes and a decrease in nontaxable income.

Total assets at March 31, 2005 stood at $312,665,000, down from $318,260,000 for the quarter ended March 31, 2004. The reduction in assets occurred as selected out of state tax-exempt bonds were sold to fund loan growth and above

 


 

market rate certificates of deposits were allowed to run off without renewing. For the same dates, deposits increased to $243,723,000, compared to $239,467,000 and net loans increased to $221,698,000 from $215,768,000 respectively.

Based in Millersburg, Ohio, CSB Bancorp, Inc., is the parent company of The Commercial and Savings Bank, an Ohio banking corporation chartered in 1879. The Bank serves consumers and businesses through nine financial centers in Holmes, Tuscarawas and Wayne Counties. CSB is located on the web at http://www.csb1.com.

Forward-looking Statement. The information in this press release contains forward-looking statements including certain projections, plans and forecasts of expected future performance that are not historical facts and that are subject to a number of risk and uncertainties. Actual results and performance could differ materially from those contemplated or implied by these forward-looking statements.

NEWS EDITOR: For further information, please contact Paula J. Meiler, Senior Vice President and Chief Financial Officer of CSB Bancorp, Inc. at 330-763-2873 or 800-654-9015 or by e-mail at paula.meiler@csb1.com.

 


 

FINANCIAL HIGHLIGHTS


(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
                   
    AT OR FOR THE
THREE MONTHS
 
    ENDED MARCH 31  
    2005       2004  
Assets
  $ 312,665       $ 318,260  
Net loans
  $ 221,698       $ 215,768  
Securities
  $ 69,655       $ 79,808  
Deposits
  $ 243,723       $ 239,467  
Shareholders’ equity
  $ 35,769       $ 34,948  
Net income
  $ 667       $ 521  
Earnings per share
  $ 0.25       $ 0.20  
Book value per outstanding share
  $ 13.52       $ 13.22  

KEY RATIOS


                   
    AT OR FOR THE
THREE MONTHS
 
    ENDED MARCH 31  
    2005       2004  
Return on average assets
    0.86 %       0.68 %
Return on average equity
    7.42 %       6.01 %
Net interest margin
    4.14 %       4.06 %
Loans to deposits
    91.95 %       91.13 %
Allowance for loan loss to total loans
    1.08 %       1.12 %
Shareholders’ equity to total assets
    11.44 %       10.98 %
Efficiency ratio
    70.47 %       73.83 %

DIRECTORS


     
Robert K. Baker
  Daniel J. Miller
Chairman    
  Jeffery 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

Paula J. Meiler
Senior Vice President
Chief Financial Officer

STOCK PERFORMANCE & DIVIDENDS


                                 
                  CASH  
QUARTER   TRADE PRICE     CLOSING     DIVIDEND  
ENDING   HIGH     LOW     PRICE     DECLARED  
  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  
  6/30/04
    18.50       17.07       17.85       0.13  
  9/30/04
    20.25       17.80       20.25       0.13  
12/31/04
    21.00       19.65       20.00       0.13  
  3/31/05
    21.40       19.85       20.25       0.14  

(COMMON STOCK PERFORMANCE GRAPH)

QUARTER ENDING

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.
6 West Jackson Street
Millersburg, OH 44654
(330) 674-9015 or
(800) 654-9015

(CSB QUARTERLY REPORT COVER)



 


 

TO OUR SHAREHOLDERS


Dear Shareholder:

We are pleased to report to you that, on a preliminary basis, our unaudited net income for the first quarter totaled $667,000. This represents a 28% increase over the first quarter of 2004 results of $521,000. Quarterly per share earnings were $0.25 per share versus $0.20 per share, a 25% increase over the prior year. Diluted earnings per share were unchanged from these results.

Enclosed with this letter and statement is your first quarter dividend payment. As a result of the increasing quarterly results, your directors voted to increase your quarterly cash dividend by $0.01 to $0.14 per share. This is a 7.7% increase in your cash dividend, over the prior year. This represents the third year in a row that your cash dividend has been increased!

These results reflect the continued improvements being made across our Company. The Federal Reserve’s interest rate policy, modest but steady increases in borrowing rates, has resulted in an increased yield in our loan portfolio. Simultaneously, the increased rates on the deposit side of our balance sheet have generated higher deposit balances.

We used the $4.3 million increase in deposit balances to partially fund the $5.9 million increase in loan balances. Our total loan balances now stand at an all time high of $224 million!

We funded the remaining loan balance increase by selling a portion of our tax-exempt investment portfolio and used part of those same sale proceeds to pay down our short term borrowings. This resulted in securities gains of $247 thousand in 2005 as compared to $26 thousand for the first quarter 2004. As a result of these activities, we believe that our net interest margin, the core strength of our business, will continue to increase. The trade-off for this strategy is an increased income tax, the result of moving from tax-exempt investment income to taxable loan interest.

We continue to examine appropriate expansion opportunities. Our most recent expansion, the Trust and Loan Production Office in Wooster, has exceeded our expectations. As a result of continuing trust expansion initiatives, our Trust assets have grown almost 100%, and the department is reaching new levels of profitability. We are grateful for those new personal and business clients who have elected to establish their estate and employee benefit plans with us. Perhaps we could be of service to you?

In January we kicked off a service delivery initiative that is focused on making our customers “Raving Fans.” Our early results are most encouraging with several projects providing improved processes and availability. We hope you will share your thoughts about our service levels as we continue on this project. Ask our employees about it!

In closing, we remain positive about the course and direction of your Company. Our capital ratios are among the highest in the industry. We believe our earnings improvements are sustainable and driven by prudent community-based deployment of the deposits we are entrusted with. We thank you for your business and continued support!

Sincerely,

     
JOHN J. LIMBERT
  ROBERT K. BAKER
President and C.E.O.
  Chairman

CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)


                   
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)   MARCH 31  
    2005       2004  
ASSETS:
                 
Cash and due from banks
  $ 10,525       $ 11,664  
Securities
    69,655         79,808  
Net loans
    221,698         215,768  
Premises and equipment, net
    8,386         8,525  
Other assets
    2,401         2,495  
 
             
TOTAL ASSETS
  $ 312,665       $ 318,260  
 
             
LIABILITIES:
                 
Deposits
  $ 243,723       $ 239,467  
Securities sold under agreements to repurchase
    10,945         12,531  
Federal funds purchased
    2,300         11,100  
Other borrowings
    18,493         19,221  
Other liabilities
    1,435         993  
 
             
TOTAL LIABILITIES
    276,896         283,312  
 
             
SHAREHOLDERS’ EQUITY:
                 
Common stock
    16,674         16,674  
Additional paid-in capital
    6,414         6,414  
Retained earnings
    13,655         12,393  
Treasury stock
    (627 )       (646 )
Accumulated other comprehensive income (loss)
    (347 )       113  
 
             
TOTAL SHAREHOLDERS’ EQUITY
    35,769         34,948  
 
             
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 312,665       $ 318,260  
 
             

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)


                   
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)   THREE MONTHS ENDED
MARCH 31
 
    2005       2004  
INTEREST INCOME:
                 
Interest and fees on loans
  $ 3,285       $ 2,993  
Interest on securities
    688         672  
Other interest income
    1         3  
 
             
TOTAL INTEREST INCOME
    3,974         3,668  
 
             
INTEREST EXPENSE:
                 
Interest on deposits
    869         835  
Other interest expense
    176         137  
 
             
TOTAL INTEREST EXPENSE
    1,045         972  
 
             
Net interest income
    2,929         2,696  
Provision for loan losses
    106         94  
 
             
Net interest income after provision for loan losses
    2,823         2,602  
Noninterest income
    533         473  
Gain on sale of securities
    247         26  
Noninterest expense
    2,677         2,515  
 
             
Net income before federal income taxes
    926         586  
Federal income tax provision
    259         65  
 
             
NET INCOME
  $ 667       $ 521  
 
             
BASIC EARNINGS PER SHARE
  $ 0.25       $ 0.20  
DILUTED EARNINGS PER SHARE
  $ 0.25       $ 0.20