EX-99.2 3 l27117aexv99w2.htm EX-99.2 EX-99.2
 

Exhibit 99.2
FINANCIAL HIGHLIGHTS STOCK PERFORMANCE & DIVIDENDS JUNE 30, 2007 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) CASH AT OR FOR THE SIX MONTHS TRADE PRICE QUARTER CLOSING DIVIDEND ENDED JUNE 30 ENDING HIGH LOW PRICE DECLARED 2007 2006 Q U A R T E R LY R E P O R T Assets $327,465 $320,899 9/30/05 22.55 20.35 22.35 0.14 Net loans $240,059 $225,643 12/31/05 25.00 21.00 21.00 0.14 Securities $66,863 $72,280 3/31/06 21.25 20.50 20.90 0.16 Deposits $250,365 $242,823 6/30/06 20.87 20.00 20.40 0.16 Shareholders’ equity $35,119 $33,799 9/30/06 20.75 18.70 19.00 0.16 Net income $1,771 $1,451 12/31/06 20.25 18.00 19.00 0.16 Earnings per share $0.72 $0.57 3/31/07 19.05 17.50 17.57 0.18 Book value per outstanding share $14.26 $13.41 6/30/07 18.25 17.42 17.75 0.18 HIGH COMMON STOCK PERFORMANCE LOW KEY RATIOS CLOSE 26 AT OR FOR THE SIX MONTHS 25 ENDED JUNE 30 2007 2006 24 23 Return on average assets 1.10% 0.92% Return on average equity 10.11% 8.37% 22 Net interest margin (tax equivalent) 4.35% 4.49% 21 Loans to deposits 96.85% 93.94% 20 Allowance for loan loss to total loans 1.00% 1.08% Shareholders’ equity to total assets 10.72% 10.53% DOLLARS PER SHARE 19 Efficiency ratio 64.57% 70.38% 18 17 — 05 — 05 — 06 — 06 — 06 — 06 — 07 — 07 SEP DEC MAR JUN SEP DEC MAR JUN DIRECTORS QUARTER ENDING Robert K. Baker Jeffery A. Robb, Sr. ADDITIONAL STOCK INFORMATION Ronald E. Holtman Samuel M. Steimel J. Thomas Lang Eddie L. Steiner STOCK LISTING Daniel J. Miller John R. Waltman Common: Chairman Symbol — CSBB.OB STOCK TRANSFER Registrar & Transfer Company Attn: Investor Relations EXECUTIVE OFFICERS 10 Commerce Drive Cranford, NJ 07016 (800) 368-5948 Eddie L. Steiner President and Chief Executive Officer Copies of CSB Bancorp, Inc. Rick L. Ginther S.E.C. Filings may be obtained by writing: President, The Commercial & Savings Bank Paula J. Meiler, CFO CSB Bancorp, Inc. Paul D. Greig 91 North Clay Street Chief Operations/Information Officer Millersburg, OH 44654 Paula J. Meiler (330) 674-9015 or Chief Financial Officer (800) 654-9015

 


 

TO OUR SHAREHOLDERS CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) JUNE 30 We are pleased to report 2007 second quarter unaudited net 2007 2006 income of $956 thousand, a 41% increase over second quarter ASSETS: 2006 results. Earnings per share for second quarter 2007 Cash and due from banks $10,390 $12,001 totaled $.39 versus $.27 in the same quarter of the prior year. Federal funds sold 0 350 Securities 66,863 72,280 Second quarter 2007 results include an insurance recovery of Net loans 240,059 225,643 $187 thousand, which increased earnings by $.05 per share. The Premises & equipment, net 7,527 7,487 insurance recovery related to a claim concerning a cash shortage Other assets 2,626 3,138 irregularity that negatively impacted prior year second quarter earnings by $.06 per share. TOTAL ASSETS $327,465 $320,899 Net interest margin for the quarter declined moderately to 4.30% LIABILITIES: while net interest income increased by $2 thousand. Noninterest Deposits $250,365 $242,823 income, net of the insurance recovery, declined by 2% compared Securities sold under agreements to repurchase 22,057 18,290 to second quarter 2006, while noninterest expenses also Federal funds purchased 11,200 11,600 declined by 1%. The Company’s second quarter efficiency ratio Other borrowings 7,203 12,705 of 62.8% was positively impacted by the insurance recovery, but Other liabilities 1,521 1,682 would still have improved to 65.7% for the quarter without the recovery. This continued improvement in our efficiency ratio is a TOTAL LIABILITIES $292,346 $287,100 result of ongoing cost control efforts. SHAREHOLDERS’ EQUITY: Our operational efforts remain focused on simultaneously Common stock $16,674 $16,674 improving efficiencies and enhancing services to the markets and Additional paid-in capital 6,439 6,419 patrons we serve. During the second quarter, the South Clay Retained earnings 17,132 15,389 Banking Center was completely remodeled to provide full service Treasury stock (4,349) (3,276) banking to the entire Millersburg downtown market and Accumulated other comprehensive loss (777) (1,407) accommodate the closing and consolidation of the 6 West Jackson Banking Center. We also completed an ATM and Debit TOTAL SHAREHOLDERS’ EQUITY $35,119 $33,799 Card system change which improved customer funds availability and fraud detection services while giving our service an updated TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $327,465 $320,899 look. The Orrville Area Banking Center has been operational for one full quarter and is successfully generating new customer CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) relationships in this growth market for our Company. (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED JUNE 30 SIX MONTHS ENDED JUNE 30 At the midpoint of 2007, unaudited net income of $1.77 million 2007 2006 2007 2006 is $320 thousand or 22% ahead of last year. Earnings per share INTEREST INCOME: of $.72 for the first six months of 2007 reflect a 26% increase Interest and fees on loans $4,485 $4,147 $8,800 $7,969 over the prior year’s six month total of $.57 per share. Interest on securities 801 859 1,619 1,739 Other interest income 2 0 15 7 The Company continues to grow, with average loan balances up 7% and average deposits up 3% year-to-date. We believe our TOTAL INTEREST INCOME 5,288 5,006 10,434 9,715 asset quality is sound and that we are appropriately reserved for loan losses. The credit portfolio remains diversified. We have not INTEREST EXPENSE: been a lender in subprime mortgage originations. Nonperforming Interest on deposits 1,601 1,273 3,154 2,440 assets comprise .67% of the loan portfolio (unchanged from the Other interest expense 412 460 750 708 immediate prior quarter) with the loan loss reserve providing TOTAL INTEREST EXPENSE 2,013 1,733 3,904 3,148 153% coverage of those nonperforming assets. Annualized net charge-offs were .33% of the Company’s av erage loan balances Net interest income 3,275 3,273 6,530 6,567 for the first half of 2007, reflecting a moderate increase from Provision for loan losses 124 115 202 147 year ago levels. Net interest income after provision for loan losses 3,151 3,158 6,328 6,420 The enclosed $.18 per share dividend for the second quarter Noninterest income 897 732 1,543 1,303 represents an increase of 12.5% or $.02 per share over last Gain on sale of securities 5 0 5 0 year’s second quarter dividend. We thank you for your support. Noninterest expense 2,647 2,908 5,266 5,616 Net income before federal income taxes 1,406 982 2,610 2,107 Sincerely, Federal income tax provision 450 305 839 656 JOHN R. WALTMAN            EDDIE L. STEINER NET INCOME $956 $677 $1,771 $1,451 Chairman            President and CEO CSB Bancorp, Inc. CSB Bancorp, Inc. EARNINGS PER SHARE $0.39 $0.27 $0.72 $0.57