UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: SEPTEMBER 30, 2002
OR
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number:
0-21714
CSB Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Ohio
34-1687530
(State or other jurisdiction of
(I.R.S. Employer Identification Number)
incorporation or organization)
6 W. Jackson Street, P.O. Box 232, Millersburg, Ohio 44654
(Address of principal executive offices)
(330) 674-9015
(Registrant's telephone number)
Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
X
Yes
No
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.
Common stock, $6.25 par value
Outstanding at October 25, 2002:
2,631,912 common shares
CSB BANCORP, INC.
FORM 10-Q
QUARTER ENDED September 30, 2002
Table of Contents
Part I - Financial Information
ITEM 1 - FINANCIAL STATEMENTS
Page
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Changes in Shareholders' Equity
Condensed Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
ITEM 2 -
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
ITEM 4 –
CONTROLS AND PROCEDURES
Part II - Other Information
Other Information
Signatures
CSB BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, | December 31, | |
2002 | 2001 | |
ASSETS | ||
Cash and due from banks | $12,659,982 | $10,509,626 |
Interest-bearing deposits with other banks | 140,936 | 185,893 |
Federal funds sold | 8,296,000 | 23,853,000 |
Total cash and cash equivalents | 21,096,918 | 34,548,519 |
Securities available-for-sale, at fair value | 22,437,156 | 35,931,920 |
Securities held-to-maturity (fair value of $54,879,027 in 2002 and $58,549,665 in 2001) | 51,472,721 | 56,675,126 |
Total securities | 73,909,877 | 92,607,046 |
Loans, net of allowance for loan losses of $3,061,241 in 2002 and $4,019,302 in 2001 | 186,438,697 | 164,915,834 |
Premises and equipment, net | 8,417,498 | 9,040,612 |
Accrued interest receivable and other assets | 4,061,458 | 5,233,301 |
Total assets | $293,924,448 ========== | $306,345,312 ========= |
LIABILITIES | ||
Deposits | ||
Noninterest-bearing | $28,279,135 | $29,721,134 |
Interest-bearing | 201,697,931 | 221,708,596 |
Total deposits | 229,977,066 | 251,429,730 |
Securities sold under repurchase agreements | 13,533,399 | 14,957,025 |
Federal Home Loan Bank borrowings | 15,535,407 | 6,359,788 |
Accrued interest payable and other liabilities | 1,222,277 | 877,632 |
Total liabilities | 260,268,149 | 273,624,175 |
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 | 11,523,001 | 10,571,152 |
Treasury stock at cost: 35,873 shares in 2002 and 39,077 shares in 2001 | (1,104,535) | (1,204,018) |
Accumulated other comprehensive income | 150,251 | 266,421 |
Total shareholders' equity | 33,656,299 | 32,721,137 |
Total liabilities and shareholders' equity | $293,924,448 ========== | $306,345,312 ========= |
See note to consolidated financial statements.
CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended September 30, | Nine Months Ended September 30, | |||
2002 | 2001 | 2002 | 2001 | |
Interest income | ||||
Loans, including fees | $3,149,585 | $3,920,336 | $9,421,966 | $13,026,316 |
Taxable securities | 371,636 | 561,035 | 1,338,668 | 1,666,857 |
Non-taxable securities | 547,387 | 603,522 | 1,680,353 | 1,816,110 |
Other | 58,290 | 213,287 | 171,784 | 406,416 |
Total interest income | 4,126,898 | 5,298,180 | 12,612,771 | 16,915,699 |
Interest expense | ||||
Deposits | 1,300,877 | 2,703,736 | 4,610,626 | 8,413,260 |
Other | 216,850 | 163,297 | 496,590 | 613,891 |
Total interest expense | 1,517,727 | 2,867,033 | 5,107,216 | 9,027,151 |
Net interest income | 2,609,171 | 2,431,148 | 7,505,555 | 7,888,548 |
Provision (credit) for loan losses | (321,000) | (2,525,853) | (562,521) | 183,110 |
Net interest income after provision for loan losses | 2,930,171 | 4,957,001 | 8,068,076 | 7,705,438 |
Non-interest income | ||||
Service charge on deposit accounts | 201,980 | 182,523 | 609,807 | 551,895 |
Gain on sale of securities | --- | 24,996 | 114,822 | 62,583 |
Trust and financial services | 80,420 | 96,583 | 277,902 | 300,764 |
Other income | 213,853 | 195,725 | 568,669 | 582,528 |
Total non-interest income | 496,253 | 499,827 | 1,571,200 | 1,497,770 |
Non-interest expense | ||||
Salaries and employee benefits | 1,391,231 | 1,307,852 | 4,092,045 | 3,934,737 |
Occupancy expense | 171,661 | 157,678 | 460,151 | 481,227 |
Equipment expense | 132,307 | 140,241 | 400,731 | 385,147 |
State franchise tax | 95,221 | 100,372 | 282,053 | 259,443 |
Professional and director fees | 195,557 | 431,139 | 634,160 | 1,324,940 |
Other expenses | 740,705 | 782,022 | 2,275,053 | 2,410,438 |
Total non-interest expense | 2,726,682 | 2,919,304 | 8,144,193 | 8,795,932 |
Income before income taxes | 699,742 | 2,537,524 | 1,495,083 | 407,276 |
Federal income tax provision (credit) | 64,085 | 683,472 | (21,821) | (396,950) |
Net income | $635,657 ======= | $1,854,052 ======== | $1,516,904 ======== | $804,226 ======= |
Basic and diluted earnings per share | $0.24 ==== | $0.71 ==== | $0.58 ==== | $0.31 ==== |
See note to consolidated financial statements.
CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||
2002 | 2001 | 2002 | 2001 | |
Balance at beginning of period | $33,278,296 | $30,674,847 | $32,721,137 | $31,539,934 |
Net income | 635,657 | 1,854,052 | 1,516,904 | 804,226 |
Other comprehensive income (loss), net of income tax | (24,006) | 230,813 | (116,170) | 415,658 |
Total comprehensive income | 611,651 | 2,084,865 | 1,400,734 | 1,219,884 |
Dividends declared ($0.10 and $0.20 per share in 2002) | (263,191) | --- | (526,143) | --- |
Purchase of treasury shares (2 and 11 shares in 2002 and 4 and 10 shares in 2001) | (30) | (56) | (192) | (162) |
Treasury shares used for the dividend reinvestment program (reissued 1,585 and 3,215 shares in 2002) | 29,573 | --- | 60,763 | --- |
Balance at end of period | $33,656,299 ========= | $32,759,656 ========= | $33,656,299 ========= | $32,759,656 ========= |
See note to consolidated financial statements.
CSB BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30, | ||
2002 | 2001 | |
Net cash flows from operating activities | $2,832,864 | $352,817 |
Cash flows from investing activities | ||
Securities available-for-sale | ||
Proceeds from maturities, calls and repayments | 19,521,306 | 19,925,000 |
Proceeds from sales | 3,125,516 | --- |
Purchases | (9,132,731) | (27,770,000) |
Securities held to maturity | ||
Proceeds from maturities, calls and repayments | 5,165,000 | 10,250,000 |
Net change in loans | (20,816,743) | 26,730,491 |
Premises and equipment expenditures, net | (243,761) | (446,451) |
Net cash from investing activities | (2,381,413) | 28,689,040 |
Cash flows from financing activities | ||
Net change in deposits | (21,452,664) | (2,306,139) |
Net change in securities sold under repurchase agreements | (1,423,626) | (2,038,952) |
Proceeds from FHLB borrowings | ||