EX-99.2 3 l22801aexv99w2.htm EX-99.2 EX-99.2
 

(CSB BANCORP, INC.)
FINANCIAL HIGHLIGHTS
 
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
                   
    AT OR FOR THE NINE MONTHS
    ENDED SEPTEMBER 30
    2006     2005
           
Assets
   $ 320,227       $ 319,412  
Net loans
   $ 227,296       $ 216,133  
Securities
   $ 72,476       $ 72,148  
Deposits
   $ 249,605       $ 255,745  
Shareholders’ equity
   $ 34,553       $ 36,392  
Net income
   $ 2,264       $ 1,970  
Earnings per share
   $ 0.89       $ 0.74  
Book value per outstanding share
   $ 13.82       $ 13.76  
KEY RATIOS
 
                   
    AT OR FOR THE NINE MONTHS
    ENDED SEPTEMBER 30
    2006     2005
           
Return on average assets
     0.95 %       0.84 %
Return on average equity
     8.69 %       7.24 %
Net interest margin (tax equivalent)
     4.46 %       4.28 %
Loans to deposits
     92.07 %       85.47 %
Allowance for loan loss to total loans
     1.10 %       1.12 %
Shareholders’ equity to total assets
     10.79 %       11.39 %
Efficiency ratio
     69.32 %       70.96 %
DIRECTORS
 
     
Robert K. Baker
  Jeffery A. Robb, Sr.
Chairman
    
 
    
Ronald E. Holtman
  Samuel M. Steimel
 
    
J. Thomas Lang
  Eddie L. Steiner
 
    
Daniel J. Miller
  John R. Waltman
EXECUTIVE OFFICERS
 
Eddie L. Steiner
President and Chief Executive Officer
Rick L. Ginther
President and Chief Executive Officer,
The Commercial & Savings Bank
Paul D. Greig
Chief Operations/Information Officer
Paula J. Meiler
Chief Financial Officer
STOCK PERFORMANCE & DIVIDENDS
 
                                 
QUARTER   TRADE PRICE   CLOSING   CASH DIVIDEND
ENDING   HIGH   LOW   PRICE   DECLARED
12/31/04
    21.00       19.65       20.00       0.13  
3/31/05
    21.40       19.85       20.25       0.14  
6/30/05
    21.15       20.05       20.50       0.14  
9/30/05
    22.55       20.35       22.35       0.14  
12/31/05
    25.00       21.00       21.00       0.14  
3/31/06
    21.25       20.50       20.90       0.16  
6/30/06
    20.87       20.00       20.40       0.16  
9/30/06
    20.75       18.70       19.00       0.16  
(COMMON STOCK PERFORMANCE)
ADDITIONAL STOCK INFORMATION
 
STOCK LISTING
Common:
Symbol — CSBB.0B
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
CSB Bancorp, Inc.
91 North Clay Street
Millersburg, OH 44654
(330) 674-9015 or
(800) 654-9015

 

 

TO OUR SHAREHOLDERS
Dear Shareholder:
We are pleased to report the Company recorded unaudited net income of $813 thousand in the third quarter, 18% above the results of third quarter 2005. Basic and diluted earnings per share were $.32 for the three months ended September 30, 2006, versus $.26 in third quarter 2005, an increase of 23%. For the nine months ended September 30, net income of $2.26 million is 15% ahead of same period results in 2005.
Based on the above performance, your board of directors declared a third quarter dividend of $.16 per share, which represents an increase of 14%, or $.02 per share over the third quarter dividend of the prior year.
Net interest income and noninterest income both increased in the third quarter, compared to the same period last year, and our efficiency ratio continued to improve. Net interest margin declined slightly, by three basis points, to 4.40% from 4.43% for the quarter ending September 30, 2005. We anticipate increasing pressure on interest margins, but believe we remain positioned to compete effectively on both loan and deposit offerings while yielding strong core earnings.
Balance sheet growth continues to be a challenge, especially in the area of core deposits. At September 30, total assets of $320 million are .25% above year ago levels, with net loans up 5.1%. Total deposit and repurchase agreement balances have grown 1.2%. The lag in deposit growth versus loan growth has been primarily funded through short-term borrowings.
Overall economic activity in our market area has maintained a steady tone this year without signs of significant growth. The Federal Reserve paused its cycle of raising targeted rates during the third quarter. We do not expect current economic conditions or current interest rate levels to drive any noticeable deterioration in the quality of our loan portfolio. Loan charge-offs remain at modest levels compared to historical norms, and we believe our loan loss reserve is appropriately funded for current portfolio risk.
Our customer relationship efforts remain focused on enhancing products and services valued by current and potential customers. As an example, during the fourth quarter we will introduce Remote Deposit Capture Service using electronic check and imaging technology for our business customers’ operating and deposit convenience. This new product will also allow us to expand our market reach as business customers will be able to deposit their customers’ checks remotely from their place of business.
On October 5, 2006 we announced plans, pending regulatory approval, to open a new banking center in March 2007 near Orrville, Ohio. From this location, we intend to provide a full array of banking services to customers located primarily in the area encompassing the Orrville, Dalton, Apple Creek and Kidron communities. The new banking center, which will be located in leased space in a new building on State Route 57 just north of U.S. Route 30, represents the next step in our strategic plan of sustainable growth while maintaining a strong community banking identity.
The directors, officers and employees of CSB remain committed to building financial value for you, our shareholders. We appreciate your support and we welcome your comments at any time.
Sincerely,
     
ROBERT K. BAKER
  EDDIE L. STEINER
Chairman
  President and CEO
CSB Bancorp, Inc.
  CSB Bancorp, Inc.
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
                   
    SEPTEMBER 30  
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)   2006       2005  
           
ASSETS:
                  
Cash and due from banks
   $ 10,547       $ 12,030  
Federal funds sold
     —         8,100  
Securities
     72,476         72,148  
Net loans
     227,296         216,133  
Premises and equipment, net
     7,432         7,804  
Other assets
     2,476         3,197  
 
              
TOTAL ASSETS
   $ 320,227       $ 319,412  
 
              
 
                  
LIABILITIES:
                  
Deposits
   $ 249,605       $ 255,745  
Securities sold under agreements to repurchase
     22,122         12,659  
Federal funds purchased
     9,300         —  
Other borrowings
     2,594         13,184  
Other liabilities
     2,053         1,432  
 
              
TOTAL LIABILITIES
   $ 285,674       $ 283,020  
 
              
 
                  
SHAREHOLDERS’ EQUITY:
                  
Common stock
   $ 16,674       $ 16,674  
Additional paid-in capital
     6,421         6,414  
Retained earnings
     15,803         14,217  
Treasury stock
     (3,691 )       (627 )
Accumulated other comprehensive income (loss)
     (654 )       (286 )
 
              
TOTAL SHAREHOLDERS’ EQUITY
   $ 34,553       $ 36,392  
 
              
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   $ 320,227       $ 319,412  
 
              
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
                                       
    THREE MONTHS ENDED       NINE MONTHS ENDED  
    SEPTEMBER 30       SEPTEMBER 30  
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)   2006       2005       2006       2005  
                       
INTEREST INCOME:
                                      
Interest and fees on loans
   $ 4,326       $ 3,730       $ 12,295       $ 10,558  
Interest on securities
     830         695         2,569         2,059  
Other interest income
     —         47         7         48  
 
                              
TOTAL INTEREST INCOME
     5,156         4,472         14,871         12,665  
 
                              
 
                                      
INTEREST EXPENSE:
                                      
Interest on deposits
     1,440         1,103         3,880         2,966  
Other interest expense
     421         155         1,129         528  
 
                              
TOTAL INTEREST EXPENSE
     1,861         1,258         5,009         3,494  
 
                              
Net interest income
     3,295         3,214         9,862         9,171  
Provision for loan losses
     75         71         222         283  
 
                              
Net interest income after provision for loan losses
     3,220         3,143         9,640         8,888  
Noninterest income
     648         539         1,979         1,626  
Gain on sale of securities
     —         —         —         247  
Noninterest expense
     2,676         2,709         8,320         8,020  
 
                              
Net income before federal income taxes
     1,192         973         3,299         2,741  
Federal income tax provision
     379         283         1,035         771  
 
                              
NET INCOME
   $ 813       $ 690       $ 2,264       $ 1,970  
 
                              
EARNINGS PER SHARE
   $ 0.32       $ 0.26       $ 0.89       $ 0.74