EX-99.2 3 l28306aexv99w2.htm EX-99.2 EX-99.2
 

Exhibit 99.2
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FINANCIAL HIGHLIGHTS            STOCK PERFORMANCE & DIVIDENDS SEPTEMBER 30, 2007 (DOLLARS IN THOUSANDS, EXCEPT PER            CASH SHARE DATA) TRADE PRICE AT OR FOR THE NINE MONTHS            QUARTER            CLOSING DIVIDEND ENDED SEPTEMBER 30 ENDING            HIGH LOW            PRICE            DECLARED 2007 2006 Q U A R T E R LY            R E P O R T 12/31/0525.00 21.00 21.00 0.14 Assets $ 330,121$ 320,227 3/31/0621.25 20.50 20.90 0.16 Net loans $ 243,072$ 227,296 6/30/0620.87 20.00 20.40 0.16 Securities $ 66,159 $ 72,476 9/30/0620.75 18.70 19.00 0.16 Deposits $ 253,594$ 249,605 12/31/0620.25 18.00 19.00 0.16 Shareholders’ equity $ 35,948 $ 34,553 3/31/0719.05 17.50 17.57 0.18 Net income $ 2,634 $2,264 6/30/0718.25 17.42 17.75 0.18 Earnings per share $ 1.07 $0.89 9/30/0719.00 15.95 17.00 0.18 Book value per outstanding $ 14.60 $13.82 share HIGH LOW COMMON STOCK PERFORMANCE CLOSE KEY RATIOS 26 25 AT OR FOR THE NINE MONTHS ENDED SEPTEMBER 30 24 2007 2006 23 Return on average assets 1.08% 0.95% PER 22 SHARE Return on average equity 9.92% 8.69% 21 DOLLARS Net interest margin (tax 4.36% 4.46% equivalent) 20 Loans to deposits 96.86% 92.07% 19 Allowance for loan loss to 1.04% 1.10% total loans Shareholders’ equity to total 10.89% 10.79% 18 assets Efficiency ratio 64.72% 69.32% 17 16
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DIRECTORS — 05 — 06- 06 — 06 — 06 — 07- 07 — 07 DEC MAR            JUN            SEP DEC            MAR JUN            SEP QUARTER ENDING Robert K. Baker            Jeffery A. Robb, Sr. Ronald E. Holtman            Samuel M. ADDITIONAL STOCK INFORMATION 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 EXECUTIVE OFFICERS            Attn: Investor Relations 10 Commerce Drive Cranford, NJ 07016 Eddie L. Steiner (800) 368-5948 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

 


 

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TO OUR SHAREHOLDERS We are pleased to report unaudited net income of $863 thousand for the third quarter of 2007, a 6% increase over third quarter 2006 results. Earnings per share for third quarter 2007 totaled $.35 versus $.32 in the same quarter of the prior year. During the past three months, your company continued to grow the balance sheet and increase revenues while controlling costs and maintaining high asset quality in our loan and investment portfolios. For the first nine months of 2007, average loan balances are up 7% and average deposits are up 3% versus the same period of the prior year. Net interest income increased by 3% compared to the same quarter of the prior year on the strength of higher average loan balances. The net interest margin of 4.37% for the quarter continues to compare favorably to the industry. Noninterest income increased 13% compared to third quarter 2006, led by increased revenue from trust operations and debit card interchange income. Noninterest expenses increased 1% versus the same period in the prior year. The Company’s third quarter efficiency ratio of 65.0% improved from 67.2% in the third quarter of 2006 primarily as a result of ongoing efforts to control operating costs. As of September 30, unaudited year-to-date net income of $2.6 million is $370 thousand or 16% ahead of last year. Earnings per share of $1.07 for the first nine months of 2007 reflect a 20% increase over the prior year’s nine-month total of $.89 per share. While there has been considerable recent media coverage about rising loan defaults and lender liquidity issues, we continue to provide safe and reliable community bank services. We believe the quality of our loan and investment portfolios remains sound, and that we are appropriately reserved for loan losses. We have not been a lender in sub prime mortgages and have not purchased sub prime investment securities. Our nonperforming assets and loan charge-offs both declined during the third quarter and remain at modest levels. On September 30, nonperforming assets amounted to just .44% of total loans and other real estate owned, while the reserve for loan losses stood at 1.04% of total loans. The enclosed $.18 per share dividend for the third quarter represents an increase of 12.5% or $.02 per share over last year’s third quarter dividend. We thank you for your continued support as a shareholder of CSB.
Sincerely,
JOHN R. WALTMAN            EDDIE L. STEINER Chairman            President and CEO CSB Bancorp, Inc. CSB Bancorp, Inc.
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) SEPTEMBER 30 2007 2006 ASSETS: Cash and due from banks $ 11,273 $ 10,547 Federal funds sold — - Securities 66,159 72,476 Net loans 243,072 227,296 Premises & equipment, net 7,398 7,432 Other assets 2,219 2,476 TOTAL ASSETS $ 330,121 $ 320,227
LIABILITIES: Deposits $ 253,594 $ 249,605 Securities sold under agreements to repurchase 21,384 22,122 Federal funds purchased 10,400 9,300 Other borrowings 7,108 2,594 Other liabilities 1,687 2,053 TOTAL LIABILITIES $ 294,173 $ 285,674
SHAREHOLDERS’ EQUITY: Common stock $ 16,674 $ 16,674 Additional paid-in capital 6,446 6,421 Retained earnings 17,552 15,803 Treasury stock (4,349) (3,691) Accumulated other comprehensive loss (375) (654) TOTAL SHAREHOLDERS’ EQUITY $ 35,948 $ 34,553
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 330,121 $ 320,227
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED SEPTEMBER 30 NINE MONTHS ENDED SEPTEMBER 30 2007 2006 2007 2006 INTEREST INCOME: Interest and fees on loans $ 4,633$ 4,326$ 13,433$ 12,295 Interest on securities 784 830 2,404 2,569 Other interest income 1 — 16 7 TOTAL INTEREST INCOME 5,418 5,156 15,853 14,871
INTEREST EXPENSE: Interest on deposits 1,609 1,440 4,763 3,880 Other interest expense 419 421 1,170 1,129 TOTAL INTEREST EXPENSE 2,028 1,861 5,933 5,009 Net interest income 3,390 3,295 9,920 9,862 Provision for loan losses 151 75 353 222 Net interest income after provision for loan losses 3,239 3,220 9,567 9,640 Noninterest income 762 676 2,305 1,979 Gain on sale of securities — — 5 - Noninterest expense 2,722 2,704 7,988 8,320 Net income before federal income taxes 1,279 1,192 3,889 3,299 Federal income tax provision 416 379 1,255 1,035 NET INCOME $ 863 $ 813 $ 2,634 $ 2,264
EARNINGS PER SHARE $ 0.35 $ 0.32 $1.07 $0.89