CSB Bancorp, Inc. Reports 17% Increase in Second Quarter 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):
Second Quarter and Year-to-Date Highlights
Quarter Ended Six Months Ended
June 30, 2006 June 30, 2006
----------------- ----------------
Diluted earnings per share $.27 $.57
Net Income $677,000 $1,451,000
Return on average common equity 7.83% 8.37%
Return on average assets .85% .92%
CSB Bancorp, Inc. (OTCBB:CSBB) today announced second quarter net income of $677 thousand, or $.27 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, up from $613 thousand, or $.23 per basic and diluted share for the same period in 2005. 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 ("ROAE ROAE Return on Average Equity ") and average assets ("ROAA ROAA Return on Average Assets (business, banking, accounting) ROAA Rural Oregon Arts Association ROAA Royce Online Account Access (Royce Fund Services, Inc. ") for the quarter were 7.83% and .85%, respectively, compared with 6.78% and .79% for the second quarter of 2005. For the six months ended June June: see month. 30, 2006, the Company reported net income of $1.45 million, or $.57 per diluted share, up from $1.28 million, or $.48 per diluted share for the same period of the prior year. ROAE and ROAA were 8.37% and .92% respectively for the six month period, compared to 7.11% and .82% for the comparable period in 2005. "CSB's second quarter results reflect sustained forward momentum across most aspects of our income generating operations," said Eddie L. Steiner Stein·er , Rudolf 1861-1925. Austrian social philosopher who investigated theosophy and founded anthroposophy. Noun 1. Steiner - Austrian philosopher who founded anthroposophy (1861-1925) Rudolf 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. . "The net interest margin, at 4.49%, remained above 4% for the sixth consecutive quarter, and non-interest income of $720 thousand was 30% higher than the same quarter last year, driven primarily by increased customer use of overdraft A check that is drawn on an account containing less money than the amount stated on the check. The term overdraft is also used in reference to the condition that exists when vouchers privilege services. Mr. Steiner continued, "We believe we've we've Contraction of we have. we've have positioned the balance sheet with asset and liability durations appropriately matched for the current interest rate environment. Our interest rate sensitivity remains slightly favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. for additional rate increases, and our current interest rate spread is designed to yield strong core earnings while competing effectively on both loan and deposit offerings. In addition, we've enhanced our cash management services, resulting in growth from new accounts." Commenting on the current economic environment, Mr. Steiner noted, "Loan demand within our market has been relatively stable, although an increasing number of businesses may be focusing on paying down debt versus moving forward with near term expansions. During the first half of 2006, we've been able to grow our loan portfolio modestly, about 6%, but deposit growth and retention have been challenging, with a net deposit balance decline of about 5%. The bulk of these balance sheet changes have been funded with short term borrowings. We anticipate that seasonal deposit increases will offset some of these short term borrowings during the second half of 2006, and the remaining short term borrowings will be repositioned if more attractive funding options become available." "On the operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. side, our efficiency ratio showed slight continued improvement, as the second quarter ratio of 71.54% compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to last year's same period results of 71.85%, and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. we've improved the ratio 66 basis points. Further progress is still needed to enhance our efficiencies, but a favorable trend has been established, on a year over year basis, as we continue to focus on improvement in this area. Total revenue, defined as net interest income on a fully-tax equivalent basis plus non-interest income net of securities transactions, was $4.0 million for the second quarter of 2006, compared with $3.7 million in the prior-year second quarter, an increase of 8.1%. Net interest margin increased 16 basis points versus the same quarter in the prior year, while average assets increased $9.9 million to $321.3 million. Average loan balances of $225.9 million reflect an increase of $2.7 million, or 1.2%, over second quarter prior year, while average securities balances increased $6.4 million, or 8.4% as compared to the same quarter in the prior year. Non-interest expense totaled $2.9 million for the second quarter of 2006, an increase of $262 thousand, or 10.0%, over the second quarter of 2005. Included in the increase is a nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge to income of $237 thousand related to 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 that is the subject of an ongoing investigation. Management believes that no customer accounts were impacted by this irregularity. The Company carries insurance against this type of loss, with a $50 thousand 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). , and is in the process of filing a loss claim. Excluding the nonrecurring charge Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". of $237 thousand, non-interest expense for the quarter was $2.7 million, an increase of 1.0% over the second quarter of 2005. Federal income tax expense was $305 thousand for second quarter 2006, compared to $229 thousand for the same quarter in 2005. The effective tax rate for the quarter ended June 30, 2006 was 31.1% compared to 27.2% for the quarter ended June 30, 2005. The increase in the effective tax rate for 2006 reflects a decline in tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. interest income, primarily resulting from the sale and maturity of bonds within the tax-free investment portfolio. As of June 30, 2006, 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 $846 thousand, or .37% of period-end loans plus other real estate, compared with $1.4 million, or .62%, as of June 20, 2005. Net charge-offs for the quarter totaled $118 thousand, compared with $139 thousand for the second quarter 2005. Commenting on the Company's credit quality, Mr. Steiner noted, "While the current economic environment is not particularly conducive con·du·cive adj. Tending to cause or bring about; contributive: working conditions not conducive to productivity. See Synonyms at favorable. to improving credit quality, delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. rates remain within our targeted range and we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our ability to manage credit deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. that could be expected to result from a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the economy." The Company recorded a $115 thousand loan loss provision in the second quarter of 2006, as compared to $106 thousand in the second quarter of 2005. The allowance for loan losses at June 30, 2006 was 1.08% of period end loans, compared with 1.06% on June 30, 2005. The ratio of allowance for loan losses to nonperforming loans stood at 291% on June 30, 2006, and 310% on June 30, 2005. Assets at June 30, 2006 totaled $321 million, up $9.7 million, or 3.1% from June 30, 2005. Period end loans were $228 million, up $4.7 million, or 2.1%, versus June 30, 2005. Home equity balances increased $2.8 million, or 16.4% and mortgage balances increased $1.7 million, or 2.8%. Commercial loan balances increased $600 thousand, or .4% and consumer installment loans 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) declined $800 thousand, or 8.9%. Investment securities increased $3.1 million, or 4.4%, over the June 30, 2005 balance. Deposits totaled $243 million on June 30, 2006, compared with $245 million at June 30, 2005. Non-interest bearing accounts increased $2.9 million, while interest bearing checking, money market and traditional savings balances declined a combined $6.8 million versus June 30, 2005. Total time deposits increased $1.4 million compared to ending balances on June 30, 2005. 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. was $33.8 million on June 30, 2006. During the quarter, the Company repurchased 47,672 shares, and period end common shares outstanding totaled 2.52 million. The Company's capital position remains strong, with tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. equity to assets at 10.53% on June 30, 2006, compared to 11.72% on June 30, 2005. The common dividend declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. during the quarter was $.16 per share, a $.02 increase from the prior-year quarter. Year to date dividends declared of $.32 per share are 14% above prior year to date. About CSB Bancorp, Inc. CSB is a 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. holding company headquartered in Millersburg, Ohio, with approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. assets of $321 million as of June 30, 2006. CSB provides a complete range of banking and other financial services 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 nine banking centers in Holmes, Tuscarawas Tuscarawas may refer to:
 s`tər), city (1990 pop. 22,191), seat of Wayne co., N central Ohio, in a farm area; inc. 1817. Paper, brass, food, and rubber products are made there. ,
Ohio.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 softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this release.
CSB BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands except per share data)
Quarters
------------------------------------------------------
2006 2006 2005 2005 2005
EARNINGS 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
---------------------------------------------------------------------
Net interest
income FTE (a)$ 3,328 $ 3,350 $ 3,449 $ 3,299 $ 3,112
Provision for
loan losses 115 32 - 71 106
Other income 720 611 707 539 554
Other expenses 2,896 2,748 2,783 2,709 2,634
FTE adjustment (a) 55 56 74 85 84
Net income 677 774 903 690 613
Diluted EPS 0.27 0.30 0.35 0.26 0.23
PERFORMANCE RATIOS
Return on average
assets (ROA) 0.85 % 0.99 % 1.12 % 0.87 % 0.79%
Return on average
common equity
(ROE) 7.83 % 8.89 % 9.93 % 7.49 % 6.78%
Net interest
margin FTE (a) 4.42 % 4.57 % 4.54 % 4.43 % 4.26%
Efficiency
ratio 71.54 % 69.38 % 66.96 % 70.58 % 71.85%
Number of full-
time equivalent
employees 130 122 127 127 130
MARKET DATA
Book
value/common
share $ 13.41 $ 13.63 $ 13.64 $ 13.76 $ 13.79
Period-end
common share
mkt value 20.40 20.90 21.00 22.35 20.50
Market as a %
of book 152.13 % 153.34 % 153.96 % 162.43 % 148.66%
PE ratio 18.89 17.42 15.00 21.49 22.28
Cash dividends/
common share $ 0.16 $ 0.16 $ 0.14 $ 0.14 $ 0.14
Common stock
dividend
payout ratio 59.26 % 53.33 % 40.00 % 53.85 % 60.87%
Average basic
common shares 2,531,456 2,572,089 2,620,102 2,644,957 2,644,968
Average diluted
common shares 2,535,021 2,576,094 2,623,684 2,649,890 2,648,286
Period end
common shares
outstanding 2,519,734 2,567,405 2,578,499 2,644,952 2,644,966
Common shares
repurchased 47,672 11,094 66,439 28 2
Common stock
market capital-
ization $ 51,403 $ 53,659 $ 54,148 $ 59,115 $ 54,222
ASSET QUALITY
Gross charge-
offs $ 145 $ 35 $ 35 $ 25 $ 213
Net charge-offs 118 7 -1 4 139
Allowance for
loan losses 2,467 2,471 2,445 2,444 2,377
Nonperforming
assets (NPAs) 846 1,070 1,241 1,408 1,391
Net charge-
off/average
loans ratio 0.21 % 0.01 % 0.00 % 0.01 % 0.25%
Allowance for
loan
losses/period-
end loans 1.08 % 1.12 % 1.14 % 1.12 % 1.06%
NPAs/loans and
other real
estate 0.37 % 0.48 % 0.58 % 0.64 % 0.62%
Allowance for
loan losses/
nonperforming
loans 291.47 % 368.80 % 305.13 % 312.30 % 310.21%
CAPITAL & LIQUIDITY
Period-end
tangible
equity to
assets 10.53 % 10.98 % 10.96 % 11.39 % 11.72%
Average equity
to assets 10.79 11.15 11.23 11.61 11.65
Average equity
to loans 15.35 16.30 16.75 16.54 16.25
Average loans
to deposits 92.57 87.36 83.60 87.90 91.45
AVERAGE BALANCES
Assets $ 321,299 $ 316,806 $ 321,205 $ 315,021 $ 311,447
Earning assets 301,956 297,178 301,615 295,342 292,872
Loans 225,939 216,609 215,379 221,096 223,252
Deposits 244,082 247,944 257,623 251,531 244,118
Shareholders'
equity 34,673 35,311 36,078 36,562 36,282
ENDING BALANCES
Assets $ 320,899 $ 318,777 $ 320,989 $ 319,412 $ 311,171
Earning assets 300,751 300,254 298,105 298,916 292,762
Loans 228,111 221,365 215,020 218,577 223,442
Deposits 242,823 247,044 255,403 255,745 245,394
Shareholders'
equity 33,799 34,992 35,177 36,392 36,469
----------------------------------------------------------------------
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 is not an accounting principle
generally accepted in the United States of America.
CSB BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, June 30,
2006 2005
ASSETS
Cash and cash equivalents
Cash and due from banks $ 11,990,923 $ 9,761,755
Interest-earning deposits in other banks 9,964 97,841
Federal funds sold 350,000 0
------------- -------------
Total cash and cash equivalents 12,350,887 9,859,596
Securities
Available-for-sale, at fair-value 69,256,199 66,345,093
Restricted stock, at cost 3,023,800 2,876,800
------------- -------------
Total securities 72,279,999 69,221,893
Loans 228,110,564 223,442,275
Less allowance for loan losses 2,467,284 2,377,067
------------- -------------
Net loans 225,643,280 221,065,208
Premises and equipment, net 7,486,661 7,888,160
Accrued interest receivable and other
assets 3,137,890 3,136,358
------------- -------------
TOTAL ASSETS $ 320,898,717 $ 311,171,215
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Nontinterest-bearing $ 38,119,508 $ 35,252,046
Interest-bearing 204,703,822 210,142,309
------------- -------------
Total deposits 242,823,330 245,394,355
Short-term borrowings 39,889,842 19,666,775
Other borrowings 2,704,998 8,318,622
Accrued interest payable and other
liabilities 1,681,549 1,322,213
------------- -------------
Total liabilities 287,099,719 274,701,965
------------- -------------
Shareholders' equity
Common stock, $6.25 par value.
Authorized 9,000,000 shares; issued
2,667,786 shares 16,673,667 16,673,667
Additional paid-in capital 6,418,965 6,413,915
Retained earnings 15,388,867 13,898,224
Treasury stock at cost - 148,053 shares
in 2006 and 22,820 shares in 2005 (3,275,850) (626,975)
Accumulated other comprehensive (loss)
income (1,406,651) 110,419
------------- -------------
Total shareholders' equity 33,798,998 36,469,250
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 320,898,717 $ 311,171,215
============= =============
CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Quarter Ended June 30,
2006 2005 2004
----------- ----------- -----------
Interest and dividend income:
Loans, including fees $4,146,970 $3,542,196 $2,957,549
Taxable securities 759,167 517,862 373,376
Nontaxable securities 99,693 157,810 412,299
Other 247 897 210
----------- ----------- -----------
Total interest and dividend
income 5,006,077 4,218,765 3,743,434
Interest expense:
Deposits 1,272,915 993,894 788,666
Other 460,229 196,444 178,436
----------- ----------- -----------
Total interest expense 1,733,144 1,190,338 967,102
Net interest income 3,272,933 3,028,427 2,776,332
Provision for loan losses 114,667 105,999 78,621
----------- ----------- -----------
Net interest income after
provision for loan losses 3,158,266 2,922,428 2,697,711
----------- ----------- -----------
Non-interest income
Service charges on deposits
accounts 337,640 234,186 211,069
Trust services 164,348 120,885 114,341
Other 217,718 198,790 246,101
----------- ----------- -----------
Total non-interest income 719,706 553,861 571,511
----------- ----------- -----------
Non-interest expenses
Salaries and employee benefits 1,430,498 1,347,708 1,288,202
Occupancy expense 167,530 186,869 158,653
Equipment expense 121,377 125,611 133,579
Franchise tax expense 112,192 107,655 103,162
Professional and director fees 174,431 151,523 186,061
Other expenses 889,591 714,179 666,075
----------- ----------- -----------
Total non-interest expenses 2,895,619 2,633,545 2,535,732
----------- ----------- -----------
Income before income tax 982,353 842,744 733,490
Federal income tax provision 305,700 229,000 127,000
----------- ----------- -----------
Net income $ 676,653 $ 613,744 $ 606,490
=========== =========== ===========
Net income per share
Basic $ 0.27 $ 0.23 $ 0.23
=========== =========== ===========
Diluted $ 0.27 $ 0.23 $ 0.23
Note: Certain prior year balances have been reclassified to conform
to the current year presentation.
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