CSB Bancorp, Inc. Reports 15.4% Increase in 2007 Earnings Per Share.MILLERSBURG, Ohio Millersburg is a village in Holmes County, Ohio, in the United States. As of the 2000 census, the village population was 3,326. It is the county seat of Holmes CountyGR6. -- CSB CSB Kashubian (SIL code, Poland) CSB Chemical Safety and Hazard Investigation Board CSB Chemical Safety Board (Washington, DC) CSB Community Services Board CSB Computational Systems Bioinformatics Bancorp, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : CSBB): [TABLE OMITTED] CSB Bancorp, Inc. (OTCBB: CSBB) today announced fourth quarter 2007 net income of $880 thousand, or $.35 per basic and diluted share, as compared to $846 thousand, or $.34 per basic and diluted share for the same period in 2006. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. returns on average common equity ("ROE") and average assets ("ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ") for the quarter were 9.54% and 1.05%, respectively, compared with 9.65% and 1.05% for the fourth quarter of 2006. For the full year of 2007, the Company reported net income of $3.51 million, or $1.42 per diluted share, up from $3.11 million, or $1.23 per diluted share in 2006. Full year ROE and ROA were 9.82% and 1.07%, respectively, compared to 8.95% and .97% in 2006. "These fourth quarter and year-end results reflect our continued focus on delivering consistently higher returns to our shareholders, said Eddie Steiner, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We continue to grow our balance sheet and earnings while controlling operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in a challenging banking environment and time of general economic uncertainty. Our net interest margin of 4.34% for the quarter and 4.35% for the year has been maintained without shifting to higher credit risk profiles within our investment or loan portfolios." Revenue, defined as net interest income on a fully tax-equivalent basis plus non-interest income net of securities transactions, totaled $4.1 million for the fourth quarter of 2007 compared with $4.0 million in the prior-year fourth quarter, an increase of 3.1%. Revenue increased 2.9% for the full year of 2007 to $16.5 million, as compared to $16.0 million in 2006. The Company's fourth quarter efficiency ratio, defined as operating expenses divided by revenue, was 65.4% as compared to same quarter results in the prior year of 64.5%. For the full year of 2007, the efficiency ratio declined (improved) to 64.9% versus the prior year's 68.1%. Non-interest expense totaled $2.7 million during the quarter, an increase of $117 thousand, or 4.5%, from fourth quarter 2006. For the full year ended December 31, 2007, non-interest expense declined $214 thousand, or 2.0% versus the prior full year. Prior year non-interest expense included a pre-tax charge of $237 thousand from an isolated irregularity A defect, failure, or mistake in a legal proceeding or lawsuit; a departure from a prescribed rule or regulation. An irregularity is not an unlawful act, however, in certain instances, it is sufficiently serious to render a lawsuit invalid. regarding cash assets, of which all but $50,000 deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). was recovered under an insurance claim. Without the prior year irregularity charge, current year non-interest expenses would have increased by $23 thousand, or 0.2%. Federal income tax expense was $420 thousand for fourth quarter 2007, compared to $398 thousand for the same quarter in 2006. Full year income tax of $1.7 million for 2007 reflects an effective tax rate of 32.3% compared to an effective tax rate of 31.5% in 2006. The increase in the effective tax rate for 2007 was primarily the result of comparatively lower tax-free interest income due to sales and maturities of bonds within the Company's tax-free investment portfolio during both 2006 and 2007. Average deposit balances grew by $2.6 million during the fourth quarter, an increase of 1.0% over third quarter 2007. For the year-ended December 31, 2007, average deposit balances increased $5.7 million or 2.3% above the prior year average. Total assets averaged $332.2 million during the quarter, an increase of $11.8 million, or 3.7% from the same quarter in the prior year. Average loan balances of $249.4 million reflect an increase of $19.4 million, or 8.4%, over fourth quarter prior year, while average securities balances decreased $7.8 million, or 10.9% as compared to fourth quarter 2006. Assets totaled $350 million at year-end, up $23 million, or 7.0% from December 31, 2006. Year-end loans totaled $257 million, up $24 million, or 10.4%, versus the end of 2006. The Company funded some of its loan growth through cash flow from maturing investments, but also increased total investment securities held at year-end through a $15 million matched leverage investment strategy implemented during the fourth quarter. As a result, year-end securities investment balances of $75 million reflect an increase of $4.3 million, or 6.1% over year-end 2006. Within the loan category, commercial loans including commercial real estate increased $19.7 million, or 14.6% over the prior year-end, residential mortgage balances grew $5.0 million, or 7.5% during the year, and home equity balances increased $1.0 million, or 5.4%. Consumer installment loan Noun 1. installment loan - a loan repaid with interest in equal periodic payments installment credit consumer credit - a line of credit extended for personal or household use loan - the temporary provision of money (usually at interest) and credit card balances declined by $1.7 million, or 15.7% during the year. As of December 31, 2007, nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. totaled $.67 million, or .26% of period-end loans plus other real estate, compared with $1.51 million, or .65%, at the prior year-end. Net charge-offs for the quarter totaled $87 thousand, or an annualized rate of .14% of average total loans. For the full year of 2007, net charge-offs totaled $493 thousand or .20% of average total loans as compared to net charge-offs of $140 thousand or .06% during 2006. The Company's allowance for loan losses at December 31, 2007 was 1.01% of period end loans and the Company funded $119 thousand in loan loss provision during the fourth quarter. The ratio of allowance for loan losses to nonperforming loans stood at 453% at year-end. Commenting on the Company's credit quality, Mr. Steiner noted, "While deteriorating credit quality has been a major concern in the broader economy, we have been pleased that no significant degradation in the quality of our loan portfolio has surfaced in the past year. We believe the loan loss reserve is appropriately funded for our current portfolio risk and loan charge-offs remain at modest levels." Liabilities totaled $314 million at December 31, 2007, up $21.8 million or 7.5% from the prior year-end. Deposit balances totaled $259 million at year-end, a decrease of $0.8 million, or 0.3% from the prior year-end total. Within the deposit category, non interest-bearing account balances increased $1.6 million, or 3.6%. Total interest-bearing checking, money market and traditional savings balances were virtually identical to year ago levels, while time deposits declined $2.4 million, or 1.9% from the prior year balance. In addition to the changes in year-end deposit balances, securities sold under repurchase agreement Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. were $0.4 million, or 1.8%, below prior year-end balances. These agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts Sweep Account A bank account that, at the close of each business day, automatically transfers amounts that exceeds (or falls short of) a certain level into a higher-interest earning account. . Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. totaled $36.3 million on December 31, 2007 with 2.4 million common shares outstanding at year-end. The Company's capital position remains strong, with tangible equity to assets at 10.4% on December 31, 2007, compared to 10.7% on December 31, 2006. The Company declared a common dividend of $.18 per share during the quarter, a $.02 increase from the prior-year quarter. Total dividends declared during 2007 were $0.72 per share, a 12.5% increase above prior year dividends. About CSB Bancorp, Inc. CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $350 million as of December 31, 2007. CSB provides a complete range of banking and other financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to consumers and businesses through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , The Commercial and Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , with ten banking centers in Holmes, Tuscarawas and Wayne counties Wayne County is the name of sixteen counties in the United States of America, some named for the American Revolutionary War general Anthony Wayne:
Forward-Looking Statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This release contains forward-looking statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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