EX-99.1 2 d615301dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

CSB BANCORP, INC. REPORTS THIRD QUARTER EARNINGS

Third Quarter Highlights

 

     Quarter Ended
September 30, 2013
  Quarter Ended
September 30, 2012
 

Diluted earnings per share

   $0.52   $ 0.45   

Net Income

   $1,407,000   $ 1,231,000   

Return on average common equity

   10.79%     9.41

Return on average assets

   0.96%     0.86

Millersburg, Ohio – October 22, 2013 – CSB Bancorp, Inc. (CSBB) today announced third quarter 2013 net income of $1.4 million or $.52 per basic and diluted share, as compared to $1.2 million or $.45 per basic and diluted share for the same period in 2012.

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 10.79% and 0.96%, respectively, compared with 9.41% and 0.86% for the third quarter of 2012.

Eddie Steiner, President and CEO commented, “We continue to focus on growing relationships with current and new customers. The bank’s average loan balances have increased 8% in the past year, and although margins remain tight, this growth has provided a 4% increase in loan interest income.”

Revenue totaled $5.9 million in the third quarter, a 7% increase from the prior-year third quarter. Gain on sale of securities contributed $149 thousand to revenue in third quarter 2013 as the bank adjusted its securities portfolio holdings. Non-interest expense amounted to $3.6 million during the quarter, an increase of $106 thousand or 3% from the same quarter in the prior year. The Company’s third quarter efficiency ratio amounted to 62.1% as compared to 62.7% for the same quarter in the prior year.

Average total assets during the quarter amounted to $582 million, an increase of $13 million or 2% above the same quarter of the prior year. Average loan balances of $375 million were $27 million or 8% above prior year third quarter, while average securities balances of $134 million increased $310 thousand or 0.2% as compared to third quarter 2012.


Total assets amounted to $594 million on September 30, 2013, up $25 million or 4% from September 30, 2012. Net loan balances at quarter end totaled $372 million, up $24 million or 7% from the year-ago quarter, while securities balances of $145 million were $4 million or 3% higher than year ago balances. On a linked-quarter basis, net loans declined by $1 million and securities balances increased by $12 million.

Average commercial loan balances, including commercial real estate, declined by $1 million or 0.4% during the quarter ended September 30, 2013. Average residential mortgage balances decreased by $551 thousand or 1% during the third quarter. Average home equity balances increased $587 thousand or 1% during the quarter due to a promotional campaign. There were no significant changes in the remainder of the bank’s loan portfolio, which includes installment, credit card and other loan balances totaling less than $10 million in outstanding balances.

The bank recorded net loan charge-offs totaling $78 thousand for the quarter. The bank’s annualized net charge-offs year to date equate 0.05% of average loan balances. Nonperforming assets totaled $2.4 million or 0.63% of total loans plus other real estate at quarter end, compared to $3.7 million or 1.05% at the end of the third quarter in the prior year. Delinquent loan balances amounted to 1.44% of total loans on September 30, 2013 down from 1.77% in September 2012.

The Company funded $210 thousand in loan loss provision during the third quarter and the allowance for loan losses amounted to 1.35% of total loans on September 30, 2013. The ratio of the allowance for loan losses to nonperforming loans stood at 214% at the end of the quarter.

Commenting on the Company’s credit quality, Steiner noted that the Company’s non-performing asset balances have continued to demonstrate a general pattern of improvement for the past three years.

Deposit balances totaled $481 million on September 30, 2013, an increase of $27 million or 6% from September 30 of the prior year. Average total deposits during the quarter of $469 million were 3% above the prior year’s third quarter average, while increasing by $8 million or 2% from the immediate prior quarter.

Within the deposit category, average non-interest-bearing account balances increased $9 million, or 9% during the quarter. Average interest-bearing checking, money market and traditional savings balances increased $3 million or 2% during the quarter, while average time deposit balances decreased $4 million or 3% during the quarter. In addition to the changes in average deposit balances, the average balance of securities sold under repurchase agreement during the third quarter increased by $5 million or 11% during the quarter. The Company’s repurchase agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts and the increase is attributed in part to seasonal increases in business activity among some portions of the bank’s customer base.


Shareholders’ equity totaled $52.1 million on September 30, 2013 with 2.7 million common shares outstanding. The tangible equity to assets ratio amounted to 7.9% on September 30, 2013. The Company declared a common dividend of $.18 per share during the quarter. Based on the September 30, 2013 closing stock price of $19.15 per share, the Company’s annual dividend yield approximates 3.8%.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $594 million as of September 30, 2013. CSB provides a complete range of banking and other financial services to consumers and businesses through its wholly owned subsidiary, The Commercial and Savings Bank, with sixteen banking centers in Holmes, Wayne, Tuscarawas and Stark counties and Trust offices located in Millersburg and Wooster, Ohio.

Forward-Looking Statement

This release contains forward-looking statements relating to present or future trends or factors affecting the banking industry, and specifically the financial condition and results of operations, including without limitation, statements relating to the earnings outlook of the Company, as well as its operations, markets and products. Actual results could differ materially from those indicated. Among the important factors that could cause results to differ materially are interest rate changes, softening in the economy, which could materially impact credit quality trends and the ability to generate loans, changes in the mix of the Company’s business, competitive pressures, changes in accounting, tax or regulatory practices or requirements and those risk factors detailed in the Company’s periodic reports and registration statements filed with the Securities and Exchange Commission. The Company undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.

Contact Information:

Paula J. Meiler, SVP & CFO

330-763-2873

paula.meiler@csb1.com


CSB BANCORP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands except per share data)

 

     Quarters        

EARNINGS

   2013
3rd Qtr
    2013
2nd Qtr
    2013
1st Qtr
    2012
4th Qtr
    2012
3rd Qtr
    2013
9 months
    2012
9 months
 

Net interest income FTE (a)

   $ 4,755      $ 4,668      $ 4,767      $ 4,543      $ 4,499      $ 14,190      $ 13,353   

Provision for loan losses

     210        210        210        206        206        630        617   

Other income

     1,190        1,066        1,038        1,149        1,073        3,294        3,055   

Other expenses

     3,634        3,663        3,559        3,818        3,528        10,856        10,632   

FTE adjustment (a)

     78        76        75        73        73        229        217   

Net income

     1,407        1,247        1,362        1,120        1,231        4,016        3,427   

Diluted earnings per share

     0.52        0.45        0.50        0.41        0.45        1.47        1.25   

PERFORMANCE RATIOS

              

Return on average assets (ROA)

     0.96     0.88     0.96     0.77     0.86     0.93     0.82

Return on average common equity (ROE)

     10.79     9.32     10.43     8.50     9.41     10.18     8.95

Net interest margin FTE (a)

     3.46     3.49     3.56     3.33     3.34     3.50     3.37

Efficiency ratio

     62.11     63.40     60.72     63.61     62.66     62.08     64.17

Number of full-time equivalent employees

     165        159        164        162        168       

MARKET DATA

              

Book value/common share

   $ 19.06      $ 18.78      $ 19.31      $ 19.17      $ 19.05       

Period-end common share mkt value

     19.15        19.25        19.20        17.00        18.25       

Market as a % of book

     100.47     102.50     99.43     88.68     95.80    

Price-to-earnings ratio

     10.19        10.64        10.85        10.24        11.77       

Cash dividends/common share

   $ 0.18      $ 0.18      $ 0.18      $ 0.18      $ 0.18      $ 0.54      $ 0.54   

Common stock dividend payout ratio

     34.62     40.00     36.00     43.90     40.00    

Average basic common shares

     2,736,634        2,736,555        2,736,060        2,735,157        2,734,799        2,736,419        2,734,799   

Average diluted common shares

     2,738,638        2,738,708        2,738,300        2,735,328        2,736,316        2,738,498        2,735,927   

Period end common shares outstanding

     2,736,634        2,736,634        2,736,060        2,736,060        2,734,799       

Common shares repurchased

     0        0        0        0        0        0        0   

Common stock market capitalization

   $ 52,407      $ 52,680      $ 52,532      $ 46,513      $ 49,910       

ASSET QUALITY

              

Gross charge-offs

   $ 91      $ 95      $ 16      $ 304      $ 39      $ 202      $ 203   

Net charge-offs (recoveries)

     78        69        (14     287        16        133        38   

Allowance for loan losses

     5,077        4,945        4,804        4,580        4,661       

Nonperforming assets (NPAs)

     2,368        2,394        2,187        3,362        3,713       

Net charge-off/average loans ratio

     0.08     0.07     (0.02 )%      0.32     0.02     0.05     0.02

Allowance for loan losses/period-end loans

     1.35        1.31        1.29        1.26        1.32       

NPAs/loans and other real estate

     0.63        0.63        0.59        0.92        1.05       

Allowance for loan losses/nonperforming loans

     214.38        206.60        219.66        137.23        127.28       

CAPITAL & LIQUIDITY

              

Period-end tangible equity to assets

     7.92     8.11     8.39     8.06     8.25    

Average equity to assets

     8.89        9.39        9.20        9.11        9.15       

Average equity to loans

     13.81        14.30        14.20        14.70        14.97       

Average loans to deposits

     79.81        81.36        80.57        76.87        76.33       

AVERAGE BALANCES

              

Assets

   $ 582,200      $ 571,569      $ 575,925      $ 575,498      $ 569,142      $ 576,573      $ 561,310   

Earning assets

     545,907        537,165        543,068        542,150        536,093        542,056        528,598   

Loans

     374,579        375,447        373,064        356,555        347,682        374,369        338,272   

Deposits

     469,353        461,488        463,030        463,862        455,491        464,672        450,057   

Shareholders’ equity

     51,745        53,677        52,960        52,415        52,063        52,764        51,124   

ENDING BALANCES

              

Assets

   $ 593,895      $ 571,068      $ 568,852      $ 586,900      $ 568,783       

Earning assets

     554,165        534,806        538,674        544,727        535,402       

Loans

     377,434        378,191        373,367        364,580        352,748       

Deposits

     480,861        462,845        457,530        475,443        454,299       

Shareholders’ equity

     52,149        51,391        52,830        52,453        52,101       

 

NOTES:

(a) - Net Interest income on a fully tax-equivalent (“FTE”) basis restates interest on tax-exempt securities and loans as if such interest were subject to federal income tax at the statutory rate. Net interest income on an FTE basis differs from net interest income under U.S. generally accepted accounting principles.


CSB BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

dollars in thousands, except per share data

 

     September 30,
2013
    September 30,
2012
 

ASSETS

    

Cash and cash equivalents

    

Cash and due from banks

   $ 16,683      $ 12,913   

Interest-earning deposits in other banks

     31,437        41,762   

Federal funds sold

     499        —     
  

 

 

   

 

 

 

Total cash and cash equivalents

     48,619        54,675   

Securities

    

Available-for-sale, at fair-value

     102,453        134,889   

Held-to-maturity

     36,808        —     

Restricted stock, at cost

     5,463        5,463   
  

 

 

   

 

 

 

Total securities

     144,724        140,352   

Loans held for sale

     70        540   

Loans

     377,434        352,748   

Less allowance for loan losses

     5,077        4,661   
  

 

 

   

 

 

 

Net loans

     372,357        348,087   

Goodwill and core deposit intangible

     5,521        5,659   

Bank owned life insurance

     9,486        8,237   

Premises and equipment, net

     8,550        8,425   

Accrued interest receivable and other assets

     4,568        2,808   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 593,895      $ 568,783   
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Liabilities

    

Deposits:

    

Noninterest-bearing

   $ 117,925      $ 91,022   

Interest-bearing

     362,936        363,277   
  

 

 

   

 

 

 

Total deposits

     480,861        454,299   

Short-term borrowings

     46,044        43,011   

Other borrowings

     12,511        16,738   

Accrued interest payable and other liabilities

     2,330        2,634   
  

 

 

   

 

 

 

Total liabilities

     541,746        516,682   
  

 

 

   

 

 

 

Shareholders’ equity

    

Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares in 2013 and 2012

     18,629        18,629   

Additional paid-in capital

     9,964        9,994   

Retained earnings

     29,501        26,342   

Treasury stock at cost - 243,968 shares in 2013 and 245,803 in 2012

     (4,958     (5,015

Accumulated other comprehensive (loss) income

     (987     2,151   
  

 

 

   

 

 

 

Total shareholders’ equity

     52,149        52,101   
  

 

 

   

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

   $ 593,895      $ 568,783   
  

 

 

   

 

 

 


CSB BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

dollars in thousands, except per share data

 

     Quarter ended
September 30,
     Nine months ended
September 30,
 
     2013      2012      2013      2012  

Interest and dividend income:

           

Loans, including fees

   $ 4,413       $ 4,357       $ 13,421       $ 12,881   

Taxable securities

     669         638         1,835         2,074   

Nontaxable securities

     130         120         385         363   

Other

     23         32         67         112   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total interest and dividend income

     5,235         5,147         15,708         15,430   
  

 

 

    

 

 

    

 

 

    

 

 

 

Interest expense:

           

Deposits

     423         559         1,346         1,789   

Other

     135         162         401         505   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total interest expense

     558         721         1,747         2,294   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income

     4,677         4,426         13,961         13,136   

Provision for loan losses

     210         206         630         617   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income after provision for loan losses

     4,467         4,220         13,331         12,519   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-interest income

           

Service charges on deposits accounts

     353         345         1,001         971   

Trust services

     201         175         641         503   

Gain on sale of loans

     67         169         283         362   

Gain on sale of securities

     149         —           159         —     

Other

     420         384         1,210         1,219   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-interest income

     1,190         1,073         3,294         3,055   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-interest expenses

           

Salaries and employee benefits

     2,028         1,985         6,119         5,909   

Occupancy expense

     245         280         758         767   

Equipment expense

     182         154         525         448   

Franchise tax expense

     147         138         440         415   

Professional and director fees

     174         172         465         621   

Federal deposit insurance

     90         83         262         238   

Amortization of intangible assets

     34         37         101         103   

Other expenses

     734         679         2,186         2,131   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-interest expenses

     3,634         3,528         10,856         10,632   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income tax

     2,023         1,765         5,769         4,942   

Federal income tax provision

     616         534         1,753         1,515   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 1,407       $ 1,231       $ 4,016       $ 3,427   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per share:

           

Basic

   $ 0.52       $ 0.45       $ 1.47       $ 1.25   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ 0.52       $ 0.45       $ 1.47       $ 1.25   
  

 

 

    

 

 

    

 

 

    

 

 

 

Note: Certain prior year balances have been reclassified to conform to the current year presentation.