CSB Bancorp, Inc. Reports Increase in Second Quarter Earnings.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: [TABLE OMITTED] CSB Bancorp, Inc. (OTCBB:CSBB) today announced second quarter net income of $956 thousand, or $0.39 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, as compared to $677 thousand, or $0.27 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 10.85% and 1.17%, respectively, compared with 7.83% and .85% for the second quarter of 2006. For the six months ended June 30, 2007, the Company reported net income of $1.77 million, or $0.72 per diluted share, up from $1.45 million, or $0.57 per diluted share in 2006. ROE and ROA for the six-month period were 10.11% and 1.10%, respectively, compared to 8.37% and .92% for the first half of 2006. "We continue to work diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d at controlling costs, defending our net interest margin and seeking prudent growth in a very competitive market and difficult interest rate environment," 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. . "Core 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. for the quarter, including operation of our new banking center, were .9% below the prior year level. Net interest margin of 4.30% for the quarter declined 12 basis points from second quarter 2006, although net interest income rose slightly due to higher loan volume." Revenue, defined as net interest income on a fully tax-equivalent basis plus non-interest income net of securities transactions, totaled $4.2 million in the second quarter, an increase of $150 thousand or 3.7% over the same period in the prior year. Current quarter revenue includes an insurance recovery of $187 thousand, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a claim from a cash shortage 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. discovered and reported during the second quarter of 2006. Revenue increased 2.1%, or $170 thousand, in the first six months of 2007 to $8.2 million, as compared to $8.0 million during the first half of 2006. The Company's second quarter efficiency ratio, defined as operating expenses divided by revenue, was 62.8%, compared to last year's same period ratio of 71.6%. Net of the prior year irregularity and current year insurance recovery, the efficiency ratio would have been 65.7% in second quarter 2007 versus 65.8% for the second quarter of 2006. Non-interest expense totaled $2.6 million during the quarter, a decrease of $262 thousand, or 9.0%, from second quarter 2006. For the six months ended June 30, 2007, non-interest expense declined $350 thousand, or 6.2% versus the first six months of 2006. Prior year non-interest expense included a pre-tax charge of $237 thousand from an isolated and nonrecurring cash assets irregularity discovered and reported during the second quarter of 2006. Excluding the 2006 irregularity, non-interest expenses declined $25 thousand, or .9% in the second quarter of 2007 versus the same period in the prior year, and are $113 thousand, or 2.1%, lower for the six months ended June 30, 2007. Federal income tax expense was $450 thousand for second quarter 2007, compared to $306 thousand for the same quarter in 2006. The effective tax rate for the quarter was 32.0% versus 31.1% in the prior year period. The increase in the effective tax rate was primarily the result of a lesser portion of tax-exempt securities Tax-exempt security An obligation whose interest is tax-exempt, often called a municipal bond, offered by a country, state, town, or any political district. in the Company's investment portfolio due to a shifting return rate environment over the past year. Mr. Steiner continued, "Our operating initiatives remain focused on simultaneously improving efficiencies and enhancing services to the markets and patrons we serve. During second quarter, we completely remodeled our South Clay Banking Center to provide full service banking to the entire Millersburg downtown market area and to accommodate the consolidation and closing of the 6 West Jackson Banking Center. We also completed an ATM and Debit Card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. system change, improving customer funds availability and fraud detection services while providing an updated look to our ATM service. The new Orrville Area Banking Center has been operational for one full quarter and is successfully generating new customer relationships in this growth market for our Company." Total assets averaged $327 million during the quarter, an increase of $5.4 million, or 1.7% from the same quarter in the prior year. Average loan balances of $240 million reflect an increase of $14.3 million, or 6.3%, over the prior year second quarter, while average securities balances of $68 million declined $7.6 million, or 10.0% as compared to second quarter 2006. The Company has funded a portion of its loan growth with proceeds from maturities in the investment securities portfolio. Average commercial loan balances, including commercial real estate, increased $8.2 million, or 6.2% over the prior year second quarter. Average home mortgage and home equity balances grew $7.6 million, or 9.3% on a comparative quarter basis, while average 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 $1.6 million, or 14.8%. As of June 30, 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 $1.64 million, or .67% of period-end loans and other real estate, compared with $846 thousand, or .37%, at June 30, 2006. Net charge-offs for the quarter totaled $353 thousand, or an annualized rate of .59% of average total loans. For the six months ended June 30, 2007, net charge-offs totaled $383 thousand or .33% of average total loans as compared to net charge-offs of $125 thousand or .11% for the same period during 2006. The Company's allowance for loan losses at June 30, 2007 was 1.00% of period end loans and the Company funded $124 thousand in loan loss provision during the second quarter. The ratio of allowance for loan losses to nonperforming loans stood at 153% at June 30, 2007. Commenting on the Company's credit quality, Mr. Steiner noted, "While loan charge-offs were somewhat higher during second quarter compared to the low levels we experienced in recent prior quarters, there does not appear to be any material elevation in the loan portfolio's credit risk. We continue to refrain from participating in the sub-prime mortgage arena." Average deposit balances increased to $252 million at quarter-end, $7.6 million, or 3.1% above the prior year's same quarter average. Within the deposit category, time deposits increased $7.4 million, or 6.2% above the average balance of the same quarter in the prior year, while non interest-bearing account balances increased $1.9 million, or 5.0%. Interest-bearing checking, money market and traditional savings average balances declined a combined $1.7 million, or 2.0% from year ago levels. 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 $35.1 million on June 30, 2007 with 2.5 million common shares outstanding at quarter-end. The Company's capital position remains strong, with tangible equity to assets at 10.7% on June 30, 2007 as compared to 10.5% at June 30, 2006. The Company declared a common dividend of $0.18 per share during the quarter, a $0.02 increase from the prior-year quarter. Year-to-date dividends declared during 2007 of $0.36 per share represent a 12.5% increase above prior year-to-date dividends. About CSB Bancorp, Inc. CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $327 million as of June 30, 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 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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