EX-99.2 3 l31145aexv99w2.htm EX-99.2 EX-99.2
 

Exhibit 99.2
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AT OR FOR THE THREE MONTHS ENDED MARCH 31 MARCH 31, 2008 QUARTERLY REPORT            FINANCIAL HIGHLIGHTS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Assets Net loans Securities Deposits Shareholders’ equity Net income Earnings per share Book value per outstanding share 2008 $344,808 $244,293 $66,387 $247,029 $37,147 $1,002 $0.41 $15.22 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. 91 North Clay Street Millersburg, OH 44654 (330) 674-9015 or (800) 654-9015 ADDITIONAL STOCK INFORMATION 6/30/07 18.25 17.42 17.75 0.18 9/30/07 19.00 15.95 17.00 0.18 12/31/07 17.75 15.40 17.75 0.18 3/31/08 17.90 15.75 16.14 0.18 QUARTER ENDING JUN-06 SEP-06 DEC-06 MAR-07 JUN-07 SEP-07 DEC-07 15 16 17 18 19 20 22 21DOLLARS PER SHARE COMMON STOCK PERFORMANCE HIGH LOW CLOSING PRICE MAR-08 “Remember to call CSB for all your financial needs, whether to borrow, save or invest.” KEY RATIOS            AT OR FOR THE THREE MONTHS ENDED MARCH 31 2008 2007 Return on average assets Return on average equity Net interest margin (tax equivalent) Net loans to deposits Allowance for loan loss to total loansShareholders’ equity to total assetsEfficiency ratio 1.17% 10.89% 4.19% 98.89% 1.09% 10.77% 62.55% 1.02% 9.37% 4.40% 91.97% 1.13% 10.83% 66.47% DIRECTORS            Robert K. Baker Ronald E. Holtman J. Thomas Lang Daniel J. Miller            Jeffery A. Robb, Sr. Eddie L. Steiner John R. Waltman            Chairman EXECUTIVE OFFICERS            Eddie L. Steiner President and Chief Executive Officer Rick L. Ginther President, The Commercial & Savings Bank            Paul D. Greig Chief Operations/Information Officer Paula J. Meiler Chief Financial Officer STOCK PERFORMANCE & DIVIDENDS CASH TRADE PRICE QUARTER ENDING HIGH LOW CLOSING PRICE DIVIDEND DECLARED 6/30/06 9/30/06 12/31/06 3/31/07 20.87 20.75 20.25 19.05 20.00 18.70 18.00 17.50 20.40 19.00 19.00 17.57 0.16 0.16 0.16 0.18 2007 $322,358 $233,163 $69,285 $253,531 $34,915 $815 $0.33 $14.18

 


 

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DEAR FELLOW SHAREHOLDER CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) We are pleased to report earnings for CSB Bancorp, Inc. are off to a good start in 2008 despite challenging economic times. First quarter earnings of $1 million, or $0.41 per share were the highest of any quarter in over six years, and the highest first quarter in eight years. Much of the boost came from the sale of the Company’s credit card portfolio. However, core earnings without this one-time source of revenue were $828 thousand and still the highest first quarter earnings in eight years. We view these results as especially encouraging given the continued aggressive lowering of rates by the Federal Reserve, volatility and turmoil in the credit markets, and the somewhat soft economic conditions that generally exist in our market area. The Company’s loan portfolio continues to exhibit high credit quality. We finished the quarter with a very low level of nonperforming loans and no property held due to foreclosure activity. Only $22 thousand in loan balances were charged off during the quarter, and this amount was almost fully offset by recoveries. Securities held for investment and liquidity purposes also continue to perform as scheduled and retain high quality investment ratings. The sub-prime mortgage crisis and housing woes remain prevalent topics in the news. As previously reported to you, CSB has not participated in lower quality mortgages commonly referred to as “sub-prime” and we do not hold such mortgages in our investment portfolio. CSB remains “well-capitalized” by Federal Reserve standards, with adequate liquidity to meet all foreseeable needs. Indeed, while you may have heard that some banks are tightening credit activities and may not have adequate funds to make new loans, CSB continues to seek and welcome new lending relationships. Our sense is that general economic conditions may prove to be the single biggest challenge to core earnings growth in 2008. The nation’s slowdown in new housing starts and general concerns about a recession appear to be having somewhat of a dampening effect on a number of businesses in our market. Some individuals, as well, may delay borrowings and shift to a more conservative financial posture until much of the broader economic difficulties and uncertainty abate. However, the present market we serve is well diversified and our breadth of product lines affords the Company some degree of stability in times of turbulence. In addition, we continue to grow customer relationships in the greater Orrville area, where we opened a new banking center last year. We are also seeing opportunities to further expand the geographic boundaries of our lending, deposit and investment service activities. Difficult economic times generally provide opportunity for strong and well-positioned banks to grow, and we intend to capitalize on prudent growth opportunities as they become available. We are pleased to enclose with this letter a dividend of $.18 per share for the first quarter of 2008. Thank you for being a shareholder of CSB Bancorp, Inc., and we hope you can attend the annual shareholders’ meeting on April 23, 2008 at 7:00 p.m. in Walnut Creek, Ohio. Sincerely, EDDIE L. STEINER JOHN R. WALTMAN President and CEO Chairman CSB Bancorp, Inc. CSB Bancorp, Inc. (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) ASSETS: Cash and due from banks Federal funds sold Securities Net loans Premises & equipment, net Other assets            TOTAL ASSETS $344,808 $322,358 LIABILITIES: Deposits Securities sold under agreements to repurchase Short-term borrowings Other borrowings Other liabilities TOTAL LIABILITIES $307,661 $287,443 SHAREHOLDERS’ EQUITY: Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income (loss) MARCH 31 2008 2007 $10,486 14,300 66,387 244,293 7,235 2,107 $247,029 $253,531 22,604 21,588 2,000 3,100 33,876 7,325 2,152 1,899 $16,674 $16,674 6,455 6,439 18,553 16,619 (4,713) (4,348) 178 (469) TOTAL SHAREHOLDERS’ EQUITY TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY CONSOLIDATED STATEMENTS OF EARNINGS $37,147 $34,915 $344,808 $322,358 (UNAUDITED) (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) INTEREST INCOME: THREE MONTHS ENDED MARCH 31 2008 2007Interest and fees on loans $4,413 $4,314Interest on securities 849 819Other interest income 22 13TOTAL INTEREST INCOME 5,284 5,146INTEREST EXPENSE: Interest on deposits 1,428 1,553Other interest expense 476 338TOTAL INTEREST EXPENSE 1,904 1,891Net interest income 3,2553,380 Provision for loan losses 78107 Net interest income after provision for loan losses 3,1773,273 Noninterest income 646955 Noninterest expense 2,6192,728 Net income before federal income taxes 1,2041,500 Federal income tax provision 389498 $10,225— 69,285233,1637,4392,246 $815 $0.33 NET INCOME $1,002 EARNINGS PER SHARE $0.41