Attached files
file | filename |
---|---|
8-K - FORM 8-K - CSB BANCORP INC /OH | l42497e8vk.htm |
Exhibit 99.1
CSB BANCORP, INC. REPORTS FIRST QUARTER EARNINGS
First Quarter Highlights
Quarter Ended | Quarter Ended | |||||||
March 31, 2011 | March 31, 2010 | |||||||
Diluted earnings per share |
$ | .33 | $ | .27 | ||||
Net Income |
$ | 896,000 | $ | 737,000 | ||||
Return on average common equity |
7.67 | % | 6.44 | % | ||||
Return on average assets |
0.80 | % | 0.67 | % |
Millersburg, Ohio April 25, 2011 CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced first
quarter 2011 net income of $896 thousand or $.33 per basic and diluted share, as compared to $737
thousand or $.27 per basic and diluted share for the same period in 2010.
Annualized returns on average common equity (ROE) and average assets (ROA) for the quarter were
7.67% and 0.80%, respectively, compared with 6.44% and 0.67% for the first quarter of 2010.
Eddie Steiner, President and CEO commented, We are pleased that first quarter net income was 21%
above the year ago level. Credit quality within our loan portfolio continues to improve, allowing
more-normalized provisioning for future loan losses. We are also encouraged by signs of improving
business conditions within our commercial customer base; however, it appears high unemployment
continues to restrain consumer borrowing and spending.
Revenue totaled $4.8 million for the first quarter of 2011, an increase of 1.9% from the prior-year
first quarter. Increases were reflected in both net interest income and other income. First
quarter net interest income on a fully tax equivalent basis was $4.0 million, a $60 thousand or
1.5% increase over the $3.9 million net interest income reported for first quarter 2010. Other
income reported for the first quarter 2011 totaled $761 thousand, a $30 thousand or 4.1% increase
over the $731 thousand reported for first quarter 2010.
Non-interest expense amounted to $3.1 million during the quarter, an increase of $80 thousand or
2.6% from first quarter 2010.
The Companys first quarter efficiency ratio was 65.3% as compared to 64.8% for the same quarter in
the prior year.
Federal income tax provision was $399 thousand for first quarter 2011, compared to $315 thousand
for the same quarter in 2010. The quarterly provisions reflect effective tax rates of 30.8% and
29.9%, respectively.
Total assets amounted to $445 million on March 31, 2011, down $12 million or 2.6% from December 31,
2010. Loans increased to $322 million, up $6.4 million or 2.0% from the prior year-end, while
securities balances of $89 million were up $7.9 million or 9.8% from the prior year-end.
Average total assets during the quarter amounted to $452 million, an increase of $7 million or 1.5%
above the same quarter of the prior year. Average loan balances of $320 million increased $7.9
million from the prior year first quarter, and average securities balances of $86 million increased
$6.2 million or 7.9% as compared to first quarter 2010.
Average commercial loan balances for the quarter, including commercial real estate, increased $13
million or 6.8% above year ago levels. Average residential mortgage balances declined by $7
million or 8.2% during the year. The decline in portfolio mortgage balances was primarily a result
of customers selecting secondary market products due to historically low 15 to 30 year fixed rates.
Average home equity balances increased $2 million or 6.1%, and average consumer credit balances
declined $0.5 million or 6.3% versus the same quarter of the prior year.
Net charge-offs for the quarter totaled $283 thousand as compared to $223 thousand for first
quarter 2010. Net charge-offs equated to 0.36% of average loans during the first quarter 2011 as
compared to 0.29% for the prior years first quarter.
Nonperforming assets totaled $3.9 million or 1.22% of total loans plus other real estate at March
31, 2011, compared to $6.5 million or 2.09% at March 31, 2010. Delinquent loan balances as of
March 31, 2011 amounted to 1.87% of total loans as compared to 2.48% at March 31, 2010.
The Company funded $280 thousand in loan loss provision during the first quarter and the allowance
for loan losses amounted to 1.25% of total loans on March 31, 2011. The ratio of the allowance for
loan losses to nonperforming loans stood at 103% on March 31, 2011 as compared to 88% and 70% at
December 31, and March 31, 2010, respectively.
Commenting on the Companys credit quality, Steiner noted, Our ratio of nonperforming assets
declined from December 31, 2010, and early stage delinquencies have shown modest improvement in
recent months. However, we continue to expect total delinquencies and nonperforming assets to
remain somewhat elevated for the foreseeable future.
Average deposit balances grew by $3.6 million during the first quarter, or 1.0%. Total average
deposits of $350 million for the quarter were 6.9% above the prior years first quarter average.
Deposit balances totaled $348 million at quarter-end, a decrease of $5 million or 1.5% during the
quarter and an increase of $22 million or 6.8% from the prior years first quarter. Average
noninterest-bearing account balances decreased $2 million, or 3.2% during the quarter and increased
$12.8 million or 24.4% from the same period in the prior year. Average interest-bearing checking,
money market and traditional savings balances increased $7 million or 5.1% during the quarter and
increased $9 million or 6.9% from the same period in the prior year. Average time deposit balances
decreased $.8 million or .5% during the quarter and increased $1.2 million or .8% from first
quarter 2010.
The average balance of securities sold under repurchase agreement during the first quarter grew by
$2 million or 8.1% above the average for the same period in the prior year. These repurchase
agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep
accounts. Average advances from the Federal Home Loan Bank (FHLB) decreased $19 million or 46.1%
from the prior years quarter as maturing borrowings have been paid down, funded by reducing
average balances of Fed funds sold and interest bearing deposits with other banks.
Shareholders equity totaled $47.5 million on March 31, 2011 with 2.7 million common shares
outstanding at year-end. The Companys capital position remains strong, with tangible equity to
assets approximating 10.2% on March 31, 2011, compared to 9.9% on December 31, 2010. The Company
declared a common dividend of $.18 per share during the quarter. Based on the March 31, 2011
closing stock price of $15.20 per share, the Companys annual dividend yield approximates 4.7%.
About CSB Bancorp, Inc.
CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets
of $445 million as of March 31, 2011. CSB provides a complete range of banking and other financial
services to consumers and businesses through its wholly owned subsidiary, The Commercial & Savings
Bank, with fourteen banking centers in Holmes, Tuscarawas, Wayne and Stark counties and Trust
offices located in Millersburg and Wooster, Ohio.
Forward-Looking Statement
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 Companys business, competitive pressures,
changes in accounting, tax or regulatory practices or requirements and those risk factors detailed
in the Companys 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.
Contact Information:
Paula J. Meiler, SVP & CFO
330-763-2873
paula.meiler@csb1.com
Paula J. Meiler, SVP & CFO
330-763-2873
paula.meiler@csb1.com
CSB BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands except per share data)
Quarters | ||||||||||||||||||||
2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
EARNINGS | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||
Net interest income FTE (a) |
$ | 3,995 | $ | 3,959 | $ | 4,016 | $ | 3,886 | $ | 3,935 | ||||||||||
Provision for loan losses |
280 | 239 | 238 | 239 | 519 | |||||||||||||||
Other income |
761 | 904 | 780 | 889 | 731 | |||||||||||||||
Other expenses |
3,120 | 3,169 | 3,215 | 3,150 | 3,041 | |||||||||||||||
FTE adjustment (a) |
61 | 60 | 59 | 53 | 54 | |||||||||||||||
Net income |
896 | 956 | 882 | 921 | 737 | |||||||||||||||
Diluted earnings per share |
0.33 | 0.35 | 0.32 | 0.34 | 0.27 | |||||||||||||||
PERFORMANCE RATIOS |
||||||||||||||||||||
Return on average assets (ROA) |
0.80 | % | 0.83 | % | 0.78 | % | 0.85 | % | 0.67 | % | ||||||||||
Return on average common equity (ROE) |
7.67 | % | 7.95 | % | 7.41 | % | 7.90 | % | 6.44 | % | ||||||||||
Net interest margin FTE (a) |
3.78 | % | 3.64 | % | 3.76 | % | 3.76 | % | 3.78 | % | ||||||||||
Efficiency ratio |
65.29 | % | 64.84 | % | 66.72 | % | 67.74 | % | 64.83 | % | ||||||||||
Number of full-time equivalent employees |
142 | 140 | 144 | 144 | 140 | |||||||||||||||
MARKET DATA |
||||||||||||||||||||
Book value/common share |
$ | 17.35 | $ | 17.24 | $ | 17.26 | $ | 17.10 | $ | 16.88 | ||||||||||
Period-end common share mkt value |
15.20 | 15.57 | 15.95 | 15.75 | 14.60 | |||||||||||||||
Market as a % of book |
87.61 | % | 90.31 | % | 92.41 | % | 92.11 | % | 86.49 | % | ||||||||||
Price-to-earnings ratio |
11.34 | 12.16 | 12.56 | 12.50 | 12.37 | |||||||||||||||
Cash dividends/common share |
$ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.18 | ||||||||||
Common stock dividend payout ratio |
54.55 | % | 51.43 | % | 56.25 | % | 52.94 | % | 66.67 | % | ||||||||||
Average basic common shares |
2,734,799 | 2,734,799 | 2,734,799 | 2,734,799 | 2,734,799 | |||||||||||||||
Average diluted common shares |
2,734,812 | 2,734,836 | 2,734,859 | 2,734,847 | 2,734,799 | |||||||||||||||
Period end common shares outstanding |
2,734,799 | 2,734,799 | 2,734,799 | 2,734,799 | 2,734,799 | |||||||||||||||
Common shares repurchased |
0 | 0 | 0 | 0 | 0 | |||||||||||||||
Common stock market capitalization |
$ | 41,569 | $ | 42,581 | $ | 43,620 | $ | 43,073 | $ | 39,928 | ||||||||||
ASSET QUALITY |
||||||||||||||||||||
Gross charge-offs |
$ | 316 | $ | 621 | $ | 459 | $ | 20 | $ | 289 | ||||||||||
Net charge-offs (recoveries) |
283 | 615 | 440 | (14 | ) | 223 | ||||||||||||||
Allowance for loan losses |
4,028 | 4,031 | 4,407 | 4,608 | 4,356 | |||||||||||||||
Nonperforming assets (NPAs) |
3,943 | 4,626 | 5,410 | 6,335 | 6,492 | |||||||||||||||
Net charge-off/average loans ratio |
0.36 | % | 0.77 | % | 0.55 | % | (0.02) | % | 0.29 | % | ||||||||||
Allowance for loan losses/period-end loans |
1.25 | 1.28 | 1.39 | 1.48 | 1.40 | |||||||||||||||
NPAs/loans and other real estate |
1.22 | 1.47 | 1.71 | 2.03 | 2.09 | |||||||||||||||
Allowance for loan losses/nonperforming
loans |
102.93 | 87.84 | 83.99 | 75.69 | 70.02 | |||||||||||||||
CAPITAL & LIQUIDITY |
||||||||||||||||||||
Period-end tangible equity to assets |
10.23 | % | 9.90 | % | 10.03 | % | 10.16 | % | 10.15 | % | ||||||||||
Average equity to assets |
10.49 | 10.49 | 10.58 | 10.70 | 10.44 | |||||||||||||||
Average equity to loans |
14.82 | 15.13 | 14.97 | 14.99 | 14.89 | |||||||||||||||
Average loans to deposits |
91.44 | 91.15 | 93.83 | 95.24 | 95.35 | |||||||||||||||
AVERAGE BALANCES |
||||||||||||||||||||
Assets |
$ | 451,666 | $ | 454,657 | $ | 446,099 | $ | 436,782 | $ | 444,916 | ||||||||||
Earning assets |
428,686 | 431,661 | 423,591 | 414,137 | 422,487 | |||||||||||||||
Loans |
319,646 | 315,348 | 315,355 | 311,647 | 311,789 | |||||||||||||||
Deposits |
349,574 | 345,962 | 336,089 | 327,215 | 326,986 | |||||||||||||||
Shareholders equity |
47,387 | 47,703 | 47,213 | 46,724 | 46,440 | |||||||||||||||
ENDING BALANCES |
||||||||||||||||||||
Assets |
$ | 445,361 | $ | 457,056 | $ | 451,586 | $ | 441,242 | $ | 435,622 | ||||||||||
Earning assets |
422,793 | 434,876 | 428,895 | 419,855 | 413,771 | |||||||||||||||
Loans |
322,017 | 315,647 | 316,909 | 311,857 | 310,900 | |||||||||||||||
Deposits |
348,209 | 353,491 | 341,296 | 329,817 | 326,204 | |||||||||||||||
Shareholders equity |
47,457 | 47,154 | 47,211 | 46,776 | 46,171 |
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 differs from net interest income under U.S. generally accepted accounting principles. |
CSB BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS
(Unaudited)
dollars in thousands, except per share data
dollars in thousands, except per share data
March 31, | March 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
||||||||
Cash and due from banks |
$ | 9,792 | $ | 7,538 | ||||
Interest-earning deposits in other banks |
11,898 | 29,144 | ||||||
Federal funds sold |
310 | | ||||||
Total cash and cash equivalents |
22,000 | 36,682 | ||||||
Securities |
||||||||
Available-for-sale, at fair-value |
83,085 | 68,264 | ||||||
Restricted stock, at cost |
5,463 | 5,463 | ||||||
Total securities |
88,548 | 73,727 | ||||||
Loans held for sale |
20 | 669 | ||||||
Loans |
322,017 | 310,900 | ||||||
Less allowance for loan losses |
4,028 | 4,356 | ||||||
Net loans |
317,989 | 306,544 | ||||||
Goodwill and core deposit intangible |
2,116 | 2,179 | ||||||
Bank owned life insurance |
2,987 | 2,880 | ||||||
Premises and equipment, net |
7,754 | 8,224 | ||||||
Accrued interest receivable and other assets |
3,947 | 4,717 | ||||||
TOTAL ASSETS |
$ | 445,361 | $ | 435,622 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Liabilities |
||||||||
Deposits: |
||||||||
Noninterest-bearing |
$ | 60,325 | $ | 52,607 | ||||
Interest-bearing |
287,884 | 273,597 | ||||||
Total deposits |
348,209 | 326,204 | ||||||
Short-term borrowings |
28,382 | 29,621 | ||||||
Other borrowings |
19,707 | 32,210 | ||||||
Accrued interest payable and other liabilities |
1,606 | 1,416 | ||||||
Total liabilities |
397,904 | 389,451 | ||||||
Shareholders equity |
||||||||
Common stock, $6.25 par value. Authorized
9,000,000 shares; issued 2,980,602 shares
in 2011 and 2010 |
18,629 | 18,629 | ||||||
Additional paid-in capital |
9,994 | 9,994 | ||||||
Retained earnings |
23,077 | 21,391 | ||||||
Treasury stock at cost 245,803 shares in
2011
and 2010 |
(5,015 | ) | (5,015 | ) | ||||
Accumulated other comprehensive income |
772 | 1,172 | ||||||
Total shareholders equity |
47,457 | 46,171 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 445,361 | $ | 435,622 | ||||
CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
dollars in thousands, except per share data
dollars in thousands, except per share data
Quarter ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Interest and dividend income: |
||||||||
Loans, including fees |
$ | 4,236 | $ | 4,302 | ||||
Taxable securities |
595 | 751 | ||||||
Nontaxable securities |
98 | 84 | ||||||
Other |
17 | 19 | ||||||
Total interest and dividend income |
4,946 | 5,156 | ||||||
Interest expense: |
||||||||
Deposits |
786 | 876 | ||||||
Other |
226 | 399 | ||||||
Total interest expense |
1,012 | 1,275 | ||||||
Net interest income |
3,934 | 3,881 | ||||||
Provision for loan losses |
280 | 519 | ||||||
Net interest income after provision
for loan losses |
3,654 | 3,362 | ||||||
Non-interest income |
||||||||
Service charges on deposits accounts |
245 | 269 | ||||||
Trust services |
160 | 141 | ||||||
Gain on sale of loans |
70 | 46 | ||||||
Other |
286 | 275 | ||||||
Total noninterest income |
761 | 731 | ||||||
Non-interest expenses |
||||||||
Salaries and employee benefits |
1,763 | 1,604 | ||||||
Occupancy expense |
219 | 220 | ||||||
Equipment expense |
120 | 127 | ||||||
Franchise tax expense |
135 | 135 | ||||||
Professional and director fees |
159 | 154 | ||||||
Federal deposit insurance |
110 | 145 | ||||||
Amortization of intangible assets |
15 | 16 | ||||||
Other expenses |
599 | 640 | ||||||
Total noninterest expenses |
3,120 | 3,041 | ||||||
Income before income tax |
1,295 | 1,052 | ||||||
Federal income tax provision |
399 | 315 | ||||||
Net income |
$ | 896 | $ | 737 | ||||
Net income per share: |
||||||||
Basic |
$ | 0.33 | $ | 0.27 | ||||
Diluted |
$ | 0.33 | $ | 0.27 | ||||
Note: Certain prior year balances have been reclassified to conform to the current year presentation. |