CSB Bancorp, Inc. Reports 45% Increase in Fourth Quarter 2005 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): Fourth Quarter Highlights -- Diluted earnings per share of $0.35 -- Net income of $903 thousand -- Return on average common equity of 9.93% -- Return on average assets of 1.12% CSB Bancorp, Inc. (OTCBB:CSBB) today announced fourth quarter 2005 net income of $903 thousand, or $0.35 per 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 $651 thousand, or $0.24 per diluted share, for the same period in 2004. 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 A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ") and average assets ("ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ") for the quarter were 9.93% and 1.12%, respectively, compared with 7.13% and 0.82% for the fourth quarter of 2004. For the full year of 2005, the Company reported net income of $2.9 million, or $1.09 per diluted share, up from $2.5 million, or $0.95 per diluted share, for the year of 2004. ROE and ROA were 7.92% and 0.91%, respectively, compared with 7.15% and 0.81% for the prior-year. "CSB's fourth quarter results reflect continued progress with enhancing our other income generation through the introduction of an 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 A permission or right. In information security, it refers to the modes of operation that a user or a process is granted. Examples include user-level privilege, operator privilege and supervisory privilege. program as well as improving our net interest margin," said John J. Limbert Limbert is a surname and may refer to:
Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin while continuing to grow core deposit relationships on our balance sheet. These increases have had a positive effect this quarter despite a challenging interest rate environment." Focusing on CSB's strong equity position, Mr. Limbert added, "Our capital management strategy of repurchasing shares resulted in the purchase of over 66,000 shares in the fourth quarter. Even with these purchases, our equity to assets ratio stands at a very strong 10.96%! This strong capital position, coupled with strong credit quality and core earnings dependability dependability - software reliability , will allow us to explore a variety of strategic alternatives, including expanding our company's market presence via new banking centers or through acquisitions." Mr. Limbert also commented on the Company's fee income during the fourth quarter, "Service charges improved strongly over the past quarter and on a year-over-year basis. We continue to look for ways to enhance service charge revenue and the addition of overdraft privilege to our product line has been embraced by our consumer and small business customer base." Total revenue, defined as net interest income on a fully-tax equivalent ("FTE FTE Full-Time Equivalent FTE Full-Time Employee FTE Full-Time Equivalency FTE Full Time Employment FTE Foundation for Teaching Economics FTE Full Time Enrollment FTE For the Enterprise (SQL) FTE Fund for Theological Education ") basis plus non-interest income net of securities transactions, was $4.2 million for the fourth quarter of 2005, compared with $3.6 million in the prior-year quarter, an increase of 16.6%. FTE net interest income increased 13.5% year-over-year, to $3.4 million. The net interest margin increased 42 basis points to 4.54%, while average assets increased $8.7 million to $321 million. During the fourth quarter of 2005, the average investment portfolio increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $11 million, or 16%, compared with the fourth quarter of 2004, while average loans decreased $1.1 million, or .5%, to $215.4 million. Non-interest income for the fourth quarter of 2005 totaled $707 thousand, compared with $527 thousand for the fourth quarter of 2004, an increase of 34.2%. During the fourth quarter of 2005, service charges on deposits rose $139 thousand, or 62.9%, compared with the fourth quarter of 2004. Trust and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. fees increased $32 thousand, or 31.7%, in the fourth quarter of 2005 compared with the year-ago quarter, a direct result of increased assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. and revenue from the opening of a Trust Office in Wooster Wooster (w  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 in 2005.Non-interest expense totaled $2.8 million for the fourth quarter of 2005, compared with $2.6 million for the fourth quarter of 2004, an increase of 8.9%. The efficiency ratio for the quarter was 66.96%, compared with 71.65% for the year ago quarter. Federal income tax expense was $397 thousand and $237 thousand for the quarters ended December December: see month. 31, 2005 and 2004, respectively. The effective tax rate for the fourth quarter 2005 was 30.5% compared to 26.7% for the same quarter in 2004. The increase in the fourth quarter 2005 reflected 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. For the years ended December 31, 2005 and 2004, the federal income tax expense was $1.2 million (effective rate of 28.9%) and $653 thousand (effective rate of 20.6%), respectively. As of December 31, 2005, 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. were $1.2 million, or 0.58% of period-end loans plus other real estate, compared with $1.4 million, or 0.64%, as of September September: see month. 30, 2005, and $1.6 million or 0.76%, as of December 31, 2004. Net recoveries for the fourth quarter of 2005 totaled $1.0 thousand, compared with net recoveries of $1.0 thousand for the fourth quarter of 2004. Commenting on the company's credit quality Limbert said, "At year end our 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. rate stood at .53% versus 1.04% at year end 2004. Coupled with the low non-performing assets and declining charge off rates 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 any credit deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. resulting from a slowing economy." The Company recorded no loan loss provision in the fourth quarter of 2005 or the fourth quarter of 2004. During the first and second quarters of 2005, two different commercial loans were reclassified from nonperforming loans to other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most . The decrease in loan loss provision from the previous quarter reflects the increase in the Company's level of allowance for loan losses as a percentage of nonperforming loans, resulting in lower or no loss provisions for the subsequent quarters during 2005. During the fourth quarter of 2005, the level of nonperforming loans improved from the prior quarter. This improvement combined with a declining historical charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. history, factored into the Company's reserve methodology. The allowance for loan losses at December 31, 2005 was 1.14% of period-end loans, compared with 1.12% on September 30, 2005 and 1.18% on December 30, 2004. The year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. ratio of allowance for loan losses to non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. stood at 305%. Assets at December 31, 2005 totaled $321 million, up 1.15% from December 31, 2004. Period-end loans declined $3.1 million or 1.4%, driven by a $6 million decline in mortgage loans coupled with a $2 million reduction in commercial participation loans that were repurchased by the originating bank. These reductions in loan balances were partially offset by home equity loans increasing $4.4 million or 31.4%, 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) increasing approximately $1 million. Investment securities increased $5.0 million, or 6.6%, over the same time period in 2004. Deposits totaled $255 million at December 31, 2005, compared with $248 million on December 31, 2004. Compared with September 30, 2005, total deposit growth was flat for the fourth quarter. Year-over-year, average checking account balances have increased approximately $2 million. Over those same time periods, money market accounts increased $5 million, as a result of a new product offering, while average traditional savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: declined $2 million. As the period represented a time of rising short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. , time deposits of less than $100 thousand grew an average $6 million from fourth quarter 2004 to fourth quarter 2005, while time deposits greater than $100 thousand remained virtually unchanged. 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 $35.2 million on December 31, 2005. The Company's capital position remains strong, as 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 was 10.96%, compared with 11.41% on December 31, 2004. The common dividend paid during the quarter was $0.14 per share, a $0.01 increase from the prior-year quarter. During the fourth quarter of 2005 the Company repurchased 66,439 common shares. Period-end common shares outstanding totaled 2.578 million. About CSB Bancorp CSB Bancorp is a diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services 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 December 31, 2005. CSB Bancorp 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, The Commercial & 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:
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 ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. 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 date)
Quarters
-------------------------------------------------------
2005 2005 2005 2005 2004
EARNINGS 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
----------------------------------------------------------------------
Net interest
income FTE (a)$ 3,449 $ 3,299 $ 3,112 $ 3,019 $ 3,039
Provision for
loan losses - 71 106 106 -
Other income 707 539 554 780 527
Other expenses 2,783 2,709 2,634 2,677 2,555
FTE adjustment(a) 74 85 84 90 123
Net income 903 690 613 667 651
Diluted EPS 0.35 0.26 0.23 0.25 0.24
PERFORMANCE RATIOS
Return on
average assets
(ROA) 1.12% 0.87% 0.79% 0.86% 0.82%
Return on
average common
equity (ROE) 9.93% 7.49% 6.78% 7.42% 7.13%
Net interest
margin FTE (a) 4.54% 4.43% 4.26% 4.14% 4.12%
Efficiency
ratio 66.96% 70.58% 71.85% 70.47% 71.65%
Number of
full-time
equivalent
employees 127 127 130 125 126
MARKET DATA
Book value/
common share $ 13.64 $ 13.76 $ 13.79 $ 13.53 $ 13.69
Period-end
common share
mkt value 21.00 22.35 20.50 20.25 20.00
Market as a %
of book 153.96% 162.43% 148.66% 149.67% 146.09%
PE ratio 15.00 21.49 22.28 20.25 20.83
Cash dividends/
common share $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.13
Common stock
dividend
payout ratio 40.00% 53.85% 60.87% 56.00% 54.17%
Average basic
common shares 2,620,102 2,644,957 2,644,968 2,644,965 2,644,962
Average diluted
common shares 2,623,684 2,649,890 2,648,286 2,653,762 2,653,333
Period end
common shares 2,578,499 2,644,952 2,644,966 2,644,968 2,644,962
Common shares
repurchased 66,439 28 2 - -
Common stock
market
capital-
ization $ 54,148 $ 59,115 $ 54,222 $ 53,561 $ 52,899
ASSET QUALITY
Gross charge-
offs $ 35 $ 25 $ 213 $ 303 $ 16
Net charge-offs -1 4 139 271 -1
Allowance for
loan losses 2,445 2,444 2,377 2,410 2,575
Nonperforming
assets (NPAs) 1,241 1,408 1,391 1,431 1,662
Net charge-off/
average loans
ratio 0.00% 0.01% 0.25% 0.49% 0.00%
Allowance for
loan losses/
period-end
loans 1.14% 1.12% 1.06% 1.08% 1.18%
NPAs/loans and
other real
estate 0.58% 0.64% 0.62% 0.64% 0.76%
Allowance for
loan losses/
nonperforming
loans 305.13% 312.30% 310.21% 168.40% 154.97%
CAPITAL & LIQUIDITY
Period-end
tangible
equity to
assets 10.96% 11.39% 11.72% 11.44% 11.41%
Average equity
to assets 11.23% 11.61% 11.65% 11.62% 11.57%
Average equity
to loans 16.75% 16.54% 16.25% 16.36% 16.74%
Average loans
to deposits 83.60% 87.90% 91.45% 91.86% 88.80%
AVERAGE BALANCES
Assets $ 321,205 $ 315,021 $ 311,447 $ 313,744 $ 313,194
Earning assets 301,615 295,342 292,872 295,731 292,918
Loans 215,379 221,096 223,252 222,970 216,468
Deposits 257,623 251,531 244,118 242,728 243,760
Shareholders'
equity 36,078 36,562 36,282 36,470 36,238
ENDING BALANCES
Assets $ 320,989 $ 319,412 $ 311,171 $ 312,665 $ 317,340
Earning assets 295,168 296,008 292,762 293,773 297,455
Loans 215,020 218,577 223,442 224,108 218,084
Deposits 255,403 255,745 245,394 243,723 247,951
Shareholders'
equity 35,177 36,392 36,469 35,769 36,208
----------------------------------------------------------------------
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)
December 31, December 31,
2005 2004
----------------------------------------- ------------- -------------
ASSETS
Cash and cash equivalents
Cash and due from banks $ 14,785,250 $ 12,501,954
Interest-earning deposits in other
banks 124,726 142,338
Federal funds sold 1,740,000 3,000,000
------------- -------------
Total cash and cash
equivalents 16,649,976 15,644,292
Securities
Available-for-sale, at fair value 78,273,248 73,438,070
Restricted stock, at cost 2,947,000 2,790,400
------------- -------------
Total securities 81,220,248 76,228,470
Loans 215,019,673 218,084,479
Less allowance for loan losses 2,445,494 2,574,945
------------- -------------
Net loans 212,574,179 215,509,534
Premises and equipment, net 7,671,822 7,709,439
Accrued interest receivable and other
assets 2,873,007 2,248,608
------------- -------------
TOTAL ASSETS $320,989,232 $317,340,343
============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing $ 41,807,069 $ 41,733,596
Interest-bearing 213,595,648 206,217,123
------------ ------------
Total deposits 255,402,717 247,950,719
Securities sold under repurchase
agreements 16,417,616 13,316,473
Federal Home Loan Bank borrowings 13,067,840 18,745,236
Accrued interest payable and other
liabilities 930,800 1,120,408
------------ ------------
Total liabilities 285,818,973 281,132,836
------------ ------------
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 6,413,915 6,413,915
Retained earnings 14,752,250 13,358,321
Treasury stock at cost - 89,287
shares in 2005
and 22,824 shares in 2004 (2,086,686) (627,119)
Accumulated other comprehensive
(loss) income (582,887) 388,723
------------ ------------
Total shareholders'
equity $ 35,170,259 $ 36,207,507
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $320,989,232 $317,340,343
============= =============
CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
2005 2004 2003
------------ ------------ ------------
Interest and dividend
income:
Loans, including fees $14,343,888 $12,122,379 $12,452,881
Taxable securities 2,243,081 1,501,812 1,020,512
Nontaxable securities 624,911 1,409,263 1,905,372
Other 145,395 40,094 35,666
----------- ----------- -----------
Total interest
and dividend income 17,357,275 15,073,548 15,414,431
----------- ----------- -----------
Interest expense:
Deposits 4,128,130 3,237,803 3,849,339
Other 683,566 636,113 782,019
----------- ----------- -----------
Total interest
expense 4,811,696 3,873,916 4,631,358
----------- ----------- -----------
Net interest income 12,545,579 11,199,632 10,783,073
Provision (credit) for loan
losses 282,664 422,621 (51,000 )
----------- ----------- -----------
Net interest income
after provision
(credit) for loan
losses 12,262,915 10,777,011 10,834,073
----------- ----------- -----------
Non-interest income
Service charges on
deposit accounts 1,037,377 846,935 790,587
Merchant fees 19,080 163,086 207,811
Trust services 484,468 386,469 375,929
Securities gains 247,047 587,916 1,068
Gain on sale of loans 23,502 13,481 68,267
Gain on sale of other
real estate owned 10,000 - 114,836
Other 759,014 682,423 596,855
------------ ------------ ------------
Total non-interest
income 2,580,489 2,680,310 2,155,353
----------- ----------- -----------
Non-interest expenses
Salaries and employee
benefits 5,671,149 5,250,732 5,516,584
Occupancy expense 677,067 642,048 647,157
Equipment expense 524,112 515,267 490,483
Franchise tax expense 427,435 419,527 408,544
Professional and
director fees 677,252 680,043 894,314
Other expenses 2,825,750 2,770,469 2,842,235
------------ ------------ ------------
Total non-interest
expenses 10,802,765 10,278,086 10,799,317
------------ ------------ ------------
Income before
income taxes 4,040,639 3,179,235 2,190,109
Federal income tax provision 1,168,000 653,000 130,000
------------ ------------ ------------
Net income $ 2,872,639 $ 2,526,235 $ 2,060,109
============ ============ ============
Net income per share
Basic $ 1.09 $ .96 $ .78
=========== =========== ===========
Diluted $ 1.09 $ .95 $ .78
Note: Certain prior year balances have been reclassified to conform to
the current year presentation.
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