CSB Bancorp, Inc. Reports Increase in First Quarter 2006 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): First Quarter 2006 Highlights --Diluted earnings per share of $0.30 --Net income of $774 thousand --Return on average common equity of 8.89% --Return on average assets of 0.99% CSB Bancorp, Inc. ("CSB") (OTCBB:CSBB) today announced first quarter 2006 net income of $774 thousand, or $0.30 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 $667 thousand, or $0.25 per 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 ("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 8.89% and 0.99%, respectively, compared with 7.42% and 0.86% for the first quarter of 2005. "Our first quarter results reflect continued progress in enhancing "other income" generation through the ongoing success of fee-based programs as well as improving our net interest margin," said Rick L. Ginther, Interim Chief Executive Officer. "Our strategic focus of prudently pru·dent adj. 1. Wise in handling practical matters; exercising good judgment or common sense. 2. Careful in regard to one's own interests; provident. 3. Careful about one's conduct; circumspect. growing the balance sheet remains unaltered as we have taken steps to increase the volume of earning assets Earning Assets 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. Growth in both assets and core deposits has had a positive effect this quarter despite a challenging interest rate environment. Service charges also increased significantly over the first quarter 2005, a result of our consumer and small business customer use of fee-based products." Focusing on CSB's strong equity position, Mr. Ginther added, "Our capital position, coupled with the Company's high credit quality and core earnings dependability dependability - software reliability , has allowed us to increase the shareholder's current cash 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. for the first quarter 2006 to $.16, up $.02 from the first quarter dividend of $0.14 declared in 2005. Additionally, the share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program continues to provide enhancement of earnings per share with the purchase of over 11,000 shares in the first quarter. Even with these purchases, our equity to assets ratio stands at a very strong 10.98%." 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 first quarter of 2006, compared with $3.6 million in the prior-year first quarter, an increase of 11.1%. The net interest margin increased 43 basis points to 4.57%, while average assets increased $3.1 million to $316.8 million. During the first quarter of 2006, the average balance of securities increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $7.2 million, or 8.8%, compared with the first quarter of 2005, while average loans decreased $6.4 million, or 2.9%, to $216.6 million. Non-interest income for the first quarter of 2006 totaled $611 thousand, compared with $533 thousand, (net of securities gains of $247 thousand), for the first quarter of 2005, an increase of 14.6%. During the first quarter of 2006, service charges on deposits rose $103 thousand, or 48.2%, compared with the first quarter of 2005. Trust and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. fees decreased $25 thousand, or 21.3%, in the first quarter of 2006 compared with the same quarter last year. Non-interest expense totaled $2.7 million for the first quarter of 2006, an increase of $71 thousand or 2.6% over the first quarter of 2005. The efficiency ratio for the quarter was 69.38%, compared with 70.47% for the year ago quarter. Federal income tax expense was $351 thousand and $259 thousand for the quarters ended March 31, 2006 and 2005, respectively. The effective tax rate for the first quarter 2006 was 31.2% compared to 28.0% for the same quarter in 2005. The increase in the effective tax rate for first quarter 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 March 31, 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. were $1.1 million, or 0.48% of period-end loans plus other real estate, compared with $1.2 million, or 0.58%, as of December December: see month. 31, 2005, and $1.4 million or 0.64%, as of March 31, 2005. Net charge-offs for the first quarter of 2006 totaled $7 thousand, compared with net charge-offs of $271 thousand for the first quarter of 2005. Commenting on the Company's credit quality Ginther said, "At March 31, 2006, 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 0.58% versus 0.84% on March 31, 2005. Coupled with the low nonperforming assets and declining 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. 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 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 $32 thousand loan loss provision in the first quarter of 2006, as compared to $106 thousand in the first quarter of 2005. The decrease in loan loss provision for the first quarter 2006 from the first quarter 2005 reflects the increase in the Company's level of allowance for loan losses as a percentage of nonperforming loans. During the first quarter of 2006, the level of nonperforming loans improved from the prior quarter. This improvement, combined with a declining historical charge-off history, has factored into the Company's reserve methodology. The allowance for loan losses at March 31, 2006, was 1.12% of period-end loans, compared with 1.14% on December 31, 2005, and 1.08% on March 31, 2005. The March 31, 2006, ratio of allowance for loan losses to nonperforming loans stood at 369%. Assets at March 31, 2006, totaled $319 million, up 1.95% from March 31, 2005. Period-end loans were $221.4 million, declining $2.7 million or 1.2%, driven by a $3.9 million decline in mortgage loans coupled with a $3.0 million reduction in commercial participation loans that were primarily repurchased by the originating bank. These reductions in loan balances were partially offset by home equity loans increasing $3.5 million or 22.4%, 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 $500 thousand. Investment securities increased $9.2 million, or 13.2%, over the March 31, 2005 balance. Deposits totaled $247 million at March 31, 2006, compared with $244 million on March 31, 2005. Year-over-year, average checking account balances have decreased approximately $500 thousand. Over those same time periods, money market accounts increased $2 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 $3.4 million from first quarter 2005 to first quarter 2006, 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 $35.0 million on March 31, 2006. 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 10.98%, compared with 11.44% on March 31, 2005. The common dividend declared during the quarter was $0.16 per share, a $0.02 increase from the prior-year quarter. During the first quarter of 2006 the Company repurchased 11,094 common shares. Period-end common shares outstanding totaled 2.567 million. 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 $319 million as of March 31, 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 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 data)
Quarters
-------------------------------------------------------
2006 2005 2005 2005 2005
EARNINGS 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
----------------------------------------------------------------------
Net interest
income FTE (a) $ 3,350 $ 3,449 $ 3,299 $ 3,112 $ 3,019
Provision for
loan losses 32 - 71 106 106
Other income 611 707 539 554 780
Other expenses 2,748 2,783 2,709 2,634 2,677
FTE adjustment
(a) 56 74 85 84 90
Net income 774 903 690 613 667
Diluted EPS 0.30 0.35 0.26 0.23 0.25
PERFORMANCE RATIOS
Return on
average assets
(ROA) 0.99 % 1.12 % 0.87 % 0.79 % 0.86%
Return on
average common
equity (ROE) 8.89 % 9.93 % 7.49 % 6.78 % 7.42%
Net interest
margin FTE (a) 4.57 % 4.54 % 4.43 % 4.26 % 4.14%
Efficiency
ratio 69.38 % 66.96 % 70.58 % 71.85 % 70.47%
Number of full-
time
equivalent
employees 122 127 127 130 125
MARKET DATA
Book value/
common share $ 13.63 $ 13.64 $ 13.76 $ 13.79 $ 13.52
Period-end
common share
mkt value 20.90 21.00 22.35 20.50 20.25
Market as a %
of book 153.34 % 153.96 % 162.43 % 148.66 % 149.67%
PE ratio 17.42 15.00 21.49 22.28 20.25
Cash dividends/
common share $ 0.16 $ 0.14 $ 0.14 $ 0.14 $ 0.14
Common stock
dividend
payout ratio 53.33 % 40.00 53.85 60.87 56.00
Average basic
common shares 2,572,089 2,620,102 2,644,957 2,644,968 2,644,965
Average diluted
common shares 2,576,094 2,623,684 2,649,890 2,648,286 2,653,762
Period end
common shares
outstanding 2,567,405 2,578,499 2,644,952 2,644,966 2,644,968
Common shares
repurchased 11,094 66,439 28 2 -
Common stock
market
capital-
ization $ 53,659 $ 54,148 $ 59,115 $ 54,222 $ 53,561
ASSET QUALITY
Gross charge-
offs $ 35 $ 35 $ 25 $ 213 $ 303
Net charge-offs 7 -1 4 139 271
Allowance for
loan losses 2,471 2,445 2,444 2,377 2,410
Nonperforming
assets (NPAs) 1,070 1,241 1,408 1,391 1,431
Net charge-
off/average
loans ratio 0.01 % 0.00 % 0.01 % 0.25 % 0.49%
Allowance for
loan
losses/period-
end loans 1.12 % 1.14 % 1.12 % 1.06 % 1.08%
NPAs/loans and
other real
estate 0.48 % 0.58 % 0.64 % 0.62 % 0.64%
Allowance for
loan losses/
nonperforming
loans 368.80 % 305.13 % 312.30 % 310.21 % 168.40%
CAPITAL & LIQUIDITY
Period-end
tangible
equity to
assets 10.98 % 10.96 % 11.39 % 11.72 % 11.44%
Average equity
to assets 11.15 % 11.23 % 11.61 % 11.65 % 11.62%
Average equity
to loans 16.30 % 16.75 % 16.54 % 16.25 % 16.36%
Average loans
to deposits 87.36 % 83.60 % 87.90 % 91.45 % 91.86%
AVERAGE BALANCES
Assets $ 316,806 $ 321,205 $ 315,021 $ 311,447 $ 313,744
Earning assets 297,178 301,615 295,342 292,872 295,731
Loans 216,609 215,379 221,096 223,252 222,970
Deposits 247,944 257,623 251,531 244,118 242,728
Shareholders'
equity 35,311 36,078 36,562 36,282 36,470
ENDING BALANCES
Assets $ 318,777 $ 320,989 $ 319,412 $ 311,171 $ 312,665
Earning assets 300,254 298,105 298,916 292,762 293,773
Loans 221,365 215,020 218,577 223,442 224,108
Deposits 247,044 255,403 255,745 245,394 243,723
Shareholders'
equity 34,992 35,177 36,392 36,469 35,769
----------------------------------------------------------------------
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)
March 31, March 31,
2006 2005
ASSETS
Cash and cash equivalents
Cash and due from banks $ 10,267,739 $ 10,515,412
Interest-earning deposits in other banks 47,167 9,619
Federal funds sold 0 0
------------- -------------
Total cash and cash equivalents 10,314,906 10,525,031
Securities
Available-for-sale, at fair-value 75,856,687 66,838,272
Restricted stock, at cost 2,984,900 2,817,300
------------- -------------
Total securities 78,841,587 69,655,572
Loans 221,123,243 224,107,821
Less allowance for loan losses 2,470,768 2,410,053
------------- -------------
Net loans 218,652,475 221,697,768
Loans held for sale 242,212 0
Premises and equipment, net 7,587,163 7,875,469
Accrued interest receivable and other
assets 3,138,328 2,911,552
TOTAL ASSETS $318,776,671 $312,665,392
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing $ 36,938,182 $ 34,951,634
Interest-bearing 210,106,032 208,771,128
------------- -------------
Total deposits 247,044,214 243,722,762
Securities sold under repurchase
agreements 15,307,224 10,944,852
Federal Home Loan Bank borrowings 19,852,923 20,793,057
Accrued interest payable and other
liabilities 1,580,626 1,435,227
------------- -------------
Total liabilities 283,784,987 276,895,898
------------- -------------
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 6,416,440 6,413,915
Retained earnings 15,115,371 13,654,775
Treasury stock at cost - 100,381 shares
in 2006 and 22,818 shares in 2005 ( 2,322,410 ) ( 626,934 )
Accumulated other comprehensive loss ( 891,384 ) ( 345,929 )
------------- -------------
Total shareholders' equity 34,991,684 35,769,494
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $318,776,671 $312,665,392
============= =============
CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended March 31
2006 2005 2004
----------- ----------- -----------
Interest and dividend income:
Loans, including fees $3,822,504 $3,285,392 $2,992,946
Taxable securities 777,800 519,329 271,471
Nontaxable securities 101,823 168,788 400,618
Other 6,592 670 2,998
----------- ----------- -----------
Total interest and dividend
income 4,708,719 3,974,179 3,668,033
Interest expense:
Deposits 1,166,920 868,997 834,830
Other 247,525 176,478 137,418
----------- ----------- -----------
Total interest expense 1,414,445 1,045,475 972,248
Net interest income 3,294,274 2,928,704 2,695,785
Provision for loan losses 32,000 105,999 94,000
----------- ----------- -----------
Net interest income after
provision for loan losses 3,262,274 2,822,705 2,601,785
----------- ----------- -----------
Non-interest income
Service charges on deposits
accounts 315,086 212,555 182,415
Merchant fees 6,546 3,302 42,574
Trust services 92,242 117,151 93,642
Securities gains 0 247,047 25,860
Gain on sale of loans 1,586 4,113 1,971
Other 194,983 196,089 152,572
----------- ----------- -----------
Total non-interest income 610,443 780,257 499,034
----------- ----------- -----------
Non-interest expenses
Salaries and employee benefits 1,491,005 1,402,464 1,259,139
Occupancy expense 171,213 158,778 162,178
Equipment expense 136,136 123,488 125,640
Franchise tax expense 109,200 104,923 101,856
Professional and director fees 174,021 156,475 186,331
Other expenses 666,236 731,021 679,224
----------- ----------- -----------
Total non-interest expenses 2,747,811 2,677,149 2,514,368
----------- ----------- -----------
Income before income tax 1,124,906 925,813 586,451
Federal income tax provision 351,000 259,000 65,000
----------- ----------- -----------
Net income $ 773,906 $ 666,813 $ 521,451
=========== =========== ===========
Net income per share
Basic $ 0.30 $ 0.25 $ 0.20
=========== =========== ===========
Diluted $ 0.30 $ 0.25 $ 0.20
=========== =========== ===========
Note: Certain prior year balances have been reclassified to conform
to the current year presentation.
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