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8-K - FORM 8-K - CSB BANCORP INC /OHd339775d8k.htm

Exhibit 99.1

 

LOGO

CSB BANCORP, INC. REPORTS FIRST QUARTER EARNINGS

First Quarter Highlights

 

     Quarter Ended     Quarter Ended  
     March 31, 2012     March 31, 2011  

Diluted earnings per share

   $ .39      $ .33   

Net Income

   $ 1,055,000      $ 896,000   

Return on average common equity

     8.46     7.67

Return on average assets

     0.77     0.80

Millersburg, Ohio – April 24, 2012 – CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced first quarter 2012 net income of $1.1 million or $.39 per basic and diluted share, as compared to $896 thousand or $.33 per basic and diluted share for the same period in 2011.

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 8.46% and 0.77%, respectively, compared with 7.67% and 0.80% for the first quarter of 2011.

Eddie Steiner, President and CEO commented, “We are pleased that first quarter net income was 18% above the year ago level. Loan demand has increased in both commercial and consumer segments, although businesses and individuals on the whole are maintaining a cautious posture by borrowing less and continuing to grow deposit balances. Credit quality within our loan portfolio continues to improve, allowing more-normalized provisioning for future loan losses.”

Revenue totaled $5.3 million for the first quarter of 2012, an increase of 12% 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 $4.4 million, a $385 thousand or 10% increase over the first quarter of 2011. Other income totaled $948 thousand in first quarter 2012, an increase of $187 thousand or 25% compared to first quarter 2011.

Non-interest expense amounted to $3.5 million during the quarter, an increase of $424 thousand or 14% from first quarter 2011.


The Company’s first quarter efficiency ratio was 65.9% as compared to 65.3% for the same quarter in the prior year.

Federal income tax provision totaled $456 thousand for first quarter 2012, compared to $399 thousand for the same quarter in 2011. The quarterly provisions reflect effective tax rates of 30% and 31%, respectively.

Total assets amounted to $561 million on March 31, 2012, up $10 million or 1.7% from December 31, 2011. Net loans increased to $327 million, up $7 million or 2.2% in the quarter, while securities balances of $128 million decreased $0.4 million or 0.3% from the prior quarter-end.

Average total assets during the quarter amounted to $552 million, an increase of $101 million or 22% above the same quarter of the prior year. Average loan balances of $327 million increased $8 million from the prior year first quarter, and average securities balances of $127 million increased $41 million or 48% as compared to first quarter 2011.

Average commercial loan balances, including commercial real estate, increased $6.2 million or 3% from the prior quarter. Average residential mortgage balances, including home equity line balances, increased by $1.4 million or 1% during the quarter. Average consumer credit balances declined $70 thousand or 1% versus the same quarter of the prior year.

Net charge-offs for the quarter totaled $41 thousand, or 0.05% of average loans on an annualized basis, as compared to $283 thousand, or 0.36% for first quarter 2011.

Nonperforming assets totaled $3.3 million or 0.99% of total loans plus other real estate at March 31, 2012 as compared to $3.5 million or 1.08% on December 31, 2011 and $3.9 million or 1.22% at March 31, 2011. Delinquent loan balances as of March 31, 2012 amounted to 1.57% of total loans as compared to 2.04% on December 31, 2011 and 1.87% at March 31, 2011.

The Company funded $206 thousand in loan loss provision during the quarter as compared to $280 thousand during the prior year’s quarter. The allowance for loan losses amounted to 1.28% of total loans on March 31, 2012 as compared to 1.25% at March 31, 2011. The ratio of the allowance for loan losses to nonperforming loans stood at 130% on March 31, 2012 as compared to 117% and 103% at December 31, and March 31, 2011, respectively.

Deposit balances totaled $450 million at quarter-end, an increase of $7 million or 1.5% from December 31, 2011 and an increase of $102 million or 29% from prior year’s quarter-end. The majority of the increase is attributable to deposits acquired with the Wooster branch acquisition during fourth quarter 2011. Organic deposit growth without the acquired deposits amounted to $28 million between March 31, 2012 and March 31, 2011 with noninterest bearing, NOW, money market and savings account balances growing and time deposit balances declining due to the low interest rate environment.


The average balance of securities sold under repurchase agreement during the first quarter grew by $8 million or 26% 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 $4 million or 16% from the prior year’s 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 $49.9 million on March 31, 2012 with 2.7 million common shares outstanding at year-end. The Company’s capital position remains strong, with tangible equity to assets approximating 8% on March 31, 2012 and December 31, 2011. The Company declared a common dividend of $.18 per share during the quarter. Based on the March 31, 2012 closing stock price of $17.75 per share, the Company’s annual dividend yield approximates 4.1%.


About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $561 million as of March 31, 2012. CSB provides a wide range of banking and other financial services to consumers and businesses through its wholly owned subsidiary, The Commercial and Savings Bank, with sixteen 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 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.

Contact Information:

Paula J. Meiler, SVP & CFO

330-763-2873

paula.meiler@csb1.com


Exhibit 99.1

CSB BANCORP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands except per share data)

 

     Quarters  
     2012     2011     2011     2011     2011  

EARNINGS

   1st Qtr     4th Qtr     3rd Qtr     2nd Qtr     1st Qtr  

Net interest income FTE (a)

   $ 4,380      $ 4,280      $ 4,163      $ 4,158      $ 3,995   

Provision for loan losses

     206        240        240        190        280   

Other income

     948        920        1,045        784        761   

Other expenses

     3,544        3,748        3,460        3,283        3,120   

FTE adjustment (a)

     67        67        66        62        61   

Net income

     1,055        820        999        972        896   

Diluted earnings per share

     0.39        0.30        0.37        0.35        0.33   

PERFORMANCE RATIOS

          

Return on average assets (ROA)

     0.77     0.61     0.87     0.87     0.80

Return on average common equity (ROE)

     8.46     6.58     8.04     8.06     7.67

Net interest margin FTE (a)

     3.38     3.38     3.83     3.93     3.78

Efficiency ratio

     65.90     71.47     69.60     66.13     65.29

Number of full-time equivalent employees

     157        154        144        143        142   

MARKET DATA

          

Book value/common share

   $ 18.25      $ 18.07      $ 17.99      $ 17.75      $ 17.35   

Period-end common share mkt value

     17.75        16.75        15.00        15.50        15.20   

Market as a % of book

     97.26     92.70     83.38     87.32     87.61

Price-to-earnings ratio

     12.59        12.41        10.71        11.48        11.34   

Cash dividends/common share

   $ 0.18      $ 0.18      $ 0.18      $ 0.18      $ 0.18   

Common stock dividend payout ratio

     46.15     60.00     48.65     51.43     54.55

Average basic common shares

     2,734,799        2,734,799        2,734,799        2,734,799        2,734,799   

Average diluted common shares

     2,735,611        2,735,229        2,734,799        2,734,831        2,734,812   

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

   $ 48,543      $ 45,808      $ 41,022      $ 42,389      $ 41,569   

ASSET QUALITY

          

Gross charge-offs

   $ 79      $ 328      $ 192      $ 178      $ 316   

Net charge-offs (recoveries)

     41        275        178        164        283   

Allowance for loan losses

     4,246        4,082        4,116        4,054        4,028   

Nonperforming assets (NPAs)

     3,266        3,500        4,000        3,974        3,943   

Net charge-off/average loans ratio

     0.05     0.34     0.22     0.21     0.36

Allowance for loan losses/period-end loans

     1.28        1.26        1.31        1.28        1.25   

NPAs/loans and other real estate

     0.99        1.08        1.27        1.25        1.22   

Allowance for loan losses/nonperforming loans

     130.20        116.96        117.77        115.30        102.93   

CAPITAL & LIQUIDITY

          

Period-end tangible equity to assets

     7.96     8.01     10.33     10.38     10.23

Average equity to assets

     9.08        9.33        10.84        10.80        10.49   

Average equity to loans

     15.33        15.46        15.60        15.13        14.82   

Average loans to deposits

     73.87        75.78        90.07        91.77        91.44   

AVERAGE BALANCES

          

Assets

   $ 552,407      $ 530,049      $ 454,685      $ 448,205      $ 451,666   

Earning assets

     520,802        502,198        431,271        424,925        428,686   

Loans

     327,203        319,852        315,750        319,906        319,646   

Deposits

     442,973        422,094        350,577        348,601        349,574   

Shareholders’ equity

     50,147        49,454        49,265        48,389        47,387   

ENDING BALANCES

          

Assets

   $ 560,803      $ 551,233      $ 457,849      $ 449,552      $ 445,361   

Earning assets

     526,942        522,410        435,806        427,281        422,793   

Loans

     331,353        324,182        313,980        316,581        322,017   

Deposits

     450,207        443,553        354,856        347,258        348,209   

Shareholders’ equity

     49,918        49,429        49,191        48,538        47,457   

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

(Unaudited)

dollars in thousands, except per share data

 

     March 31,     March 31,  
     2012     2011  

ASSETS

    

Cash and cash equivalents

    

Cash and due from banks

   $ 12,855      $ 9,792   

Interest-earning deposits in other banks

     67,026        11,898   

Federal funds sold

     —          310   
  

 

 

   

 

 

 

Total cash and cash equivalents

     79,881        22,000   

Securities

    

Available-for-sale, at fair-value

     122,639        83,085   

Restricted stock, at cost

     5,463        5,463   
  

 

 

   

 

 

 

Total securities

     128,102        88,548   

Loans held for sale

     461        20   

Loans

     331,353        322,017   

Less allowance for loan losses

     4,246        4,028   
  

 

 

   

 

 

 

Net loans

     327,107        317,989   

Goodwill and core deposit intangible

     5,729        2,116   

Bank owned life insurance

     8,113        2,987   

Premises and equipment, net

     8,413        7,754   

Accrued interest receivable and other assets

     2,997        3,947   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 560,803      $ 445,361   
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Liabilities

    

Deposits:

    

Noninterest-bearing

   $ 87,271      $ 60,325   

Interest-bearing

     362,936        287,884   
  

 

 

   

 

 

 

Total deposits

     450,207        348,209   

Short-term borrowings

     41,717        28,382   

Other borrowings

     17,009        19,707   

Accrued interest payable and other liabilities

     1,952        1,606   
  

 

 

   

 

 

 

Total liabilities

     510,885        397,904   
  

 

 

   

 

 

 

Shareholders’ equity

    

Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares in 2012 and 2011

     18,629        18,629   

Additional paid-in capital

     9,994        9,994   

Retained earnings

     24,954        23,077   

Treasury stock at cost—245,803 shares in 2012 and 2011

     (5,015     (5,015

Accumulated other comprehensive income

     1,356        772   
  

 

 

   

 

 

 

Total shareholders’ equity

     49,918        47,457   
  

 

 

   

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

   $ 560,803      $ 445,361   
  

 

 

   

 

 

 


CSB BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

dollars in thousands, except per share data

 

     Quarter ended  
     March 31,  
     2012      2011  

Interest and dividend income:

     

Loans, including fees

   $ 4,252       $ 4,236   

Taxable securities

     729         595   

Nontaxable securities

     112         98   

Other

     39         17   
  

 

 

    

 

 

 

Total interest and dividend income

     5,132         4,946   
  

 

 

    

 

 

 

Interest expense:

     

Deposits

     640         786   

Other

     179         226   
  

 

 

    

 

 

 

Total interest expense

     819         1,012   
  

 

 

    

 

 

 

Net interest income

     4,313         3,934   

Provision for loan losses

     206         280   
  

 

 

    

 

 

 

Net interest income after provision for loan losses

     4,107         3,654   
  

 

 

    

 

 

 

Non-interest income

     

Service charges on deposits accounts

     308         245   

Trust services

     161         160   

Securities gains (losses), net

     0         0   

Gain on sale of loans

     56         70   

Other

     423         286   
  

 

 

    

 

 

 

Total non-interest income

     948         761   
  

 

 

    

 

 

 

Non-interest expenses

     

Salaries and employee benefits

     1,963         1,763   

Occupancy expense

     246         219   

Equipment expense

     155         120   

Franchise tax expense

     139         135   

Professional and director fees

     207         159   

Federal deposit insurance

     87         110   

Amortization of intangible assets

     33         15   

Other expenses

     714         599   
  

 

 

    

 

 

 

Total non-interest expenses

     3,544         3,120   
  

 

 

    

 

 

 

Income before income tax

     1,511         1,295   

Federal income tax provision

     456         399   
  

 

 

    

 

 

 

Net income

   $ 1,055       $ 896   
  

 

 

    

 

 

 

Net income per share:

     

Basic

   $ 0.39       $ 0.33   
  

 

 

    

 

 

 

Diluted

   $ 0.39       $ 0.33   
  

 

 

    

 

 

 

Note: Certain prior year balances have been reclassified to conform to the current year presentation.