Menu Search

Company Announcements

CSB Bancorp Inc

CSB Bancorp, Inc. Reports Third Quarter Earnings

MILLERSBURG, Ohio--(BUSINESS WIRE)--Oct. 22, 2024-- CSB Bancorp, Inc. (OTC Pink: CSBB):

Third Quarter Highlights

 

 

Quarter Ended

September 30, 2024

 

 

 

Quarter Ended

September 30, 2023

 

Diluted earnings per share

 

$

1.18

 

 

 

$

1.30

 

Net Income

 

$

3,145,000

 

 

 

$

3,481,000

 

Return on average common equity

 

 

11.14

%

 

 

 

13.63

%

Return on average assets

 

 

1.05

%

 

 

 

1.19

%

CSB Bancorp, Inc. (OTC Pink: CSBB) today announced third quarter 2024 net income of $3,145,000, or $1.18 per basic and diluted share, as compared to $3,481,000, or $1.30 per basic and diluted share, for the same period in 2023. For the nine-month period ended September 30, 2024 net income totaled $7,693,000 compared to $11,059,000 for the same period last year, a decrease of 30%.

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 11.14% and 1.05%, respectively, compared with 13.63% and 1.19% for the third quarter of 2023. For the nine-month period ended September 30, 2024 ROE and ROA were 9.30% and 0.88% as compared to 14.85% and 1.28% for the comparable period in 2023.

Eddie Steiner, President and CEO stated, “Local economic conditions remain stable with continued low unemployment. Loan demand has been steady, with signs of increasing borrower appetite as interest rates decline. Total revenue is 2% above the prior year’s nine months and net revenue before provision for credit loss and taxes is 1% ahead on a year to date basis. Margins and efficiency are holding very close to prior year levels, even with higher rates paid on deposits and moderate inflation within operating costs. Overall quality within the loan portfolio remains acceptable, and shareholders’ equity and book value per share have increased 7% year to date.”

Pre-Provision Net Revenue (“PPNR”) (a non-GAAP measure) totaled $4.60 million during the quarter, an increase of $93 thousand, or 2%, from the prior year’s third quarter. Net interest income increased $377 thousand, or 4%, noninterest income increased $104 thousand, or 6%, and noninterest expense rose $388 thousand, or 6%, in the third quarter of 2024 compared to the same period in 2023.

Provision for credit loss expense for the quarter increased $523 thousand from third quarter 2023 and $4.5 million for the comparable nine-month period. As previously identified, while continuing to pursue liquidation of a commercial lending relationship originally totaling $6.4 million, the credit was charged down in third quarter 2024 by the previously held specific reserve of $4.1 million. The court appointed receiver has obtained auction values of the premises and equipment in possession and the bank continues to move through the court system to schedule liquidation of the assets or sale of company.

The allowance for expected credit losses on loans amounted to $7.2 million, or 1.00% of total loans, on September 30, 2024, as compared to $6.7 million or 0.98% of total loans on September 30, 2023. The allowance for credit losses on off-balance sheet commitments on September 30, 2024 was $532 thousand, as compared to a September 30, 2023 balance of $492 thousand. CSB recorded no allowance for credit losses related to AFS or HTM debt securities as there is a zero loss expectation on these securities.

Loan interest income including fees increased $1.4 million, or 15%, during third quarter 2024 as compared to the same quarter in 2023. The increase was almost evenly divided between volume and rate increases with a $48 million increase in average loan volume and a 41bp increase in quarter over prior quarter yield. Securities interest income decreased $142 thousand, or 7%, during the third quarter 2024 compared to the same quarter 2023 as the Company continues to deploy cash flow from investments into loan originations. Loan yields for third quarter 2024 averaged 5.80%, an increase of 41 basis points from the 2023 third quarter average of 5.39%, while overnight funds and securities yields for third quarter 2024 averaged 5.41% and 2.17%, respectively, compared to 5.45% and 2.11% in the third quarter 2023.

Interest expense rose $1.1 million, or 38%, during third quarter 2024 as compared to third quarter 2023. The increase follows a period of rapid interest rate increases spurred by the Federal Reserve during March 2022 through July 2023, followed by competitive pressures from banks and others to secure adequate funding. The cost to fund gross earning assets for the third quarter 2024 was 1.40% as compared to 1.04% for the third quarter of 2023.

The fully-taxable equivalent (“FTE”) (a non-GAAP measure) net interest margin was 3.26% compared to 3.21% for the third quarter 2023. Compared to the 2023 third quarter, FTE net interest income increased $377 thousand, or 4%, reflecting increasing interest income with a $31 million increase in average earning assets as well as a 42 bp increase in the yield on assets. The higher interest rate environment coupled with the continued mix shift into loans from securities primarily drove the increase in earnings from assets, which was partially offset by higher average interest-bearing liabilities and a 48 bp higher cost of funds. Tax equivalency effect on net interest margin was 0.01% in third quarter 2024 and 2023.

Noninterest income increased $104 thousand, or 6%, compared to third quarter of 2023. The increase was primarily the result of a $59 thousand increase in gain on sale of mortgage loans to the secondary market, a $28 thousand increase in the unrealized gain or loss on equity securities, a $24 thousand increase in earnings on bank owned life insurance, and a $15 thousand increase in trust and brokerage fees. Offsetting decreases were recognized in service charges related to deposit overdraft fees and credit card fees.

Noninterest expense increased $388 thousand, or 6%, from third quarter 2023. Salary and employee benefit costs increased $227 thousand, or 7%, compared to the prior year quarter with increases in base salary, insurance, and social security taxes. Marketing and public relation costs increased $38 thousand, or 31%, with increases in community related activities. Professional and directors’ fees increased $25 thousand, or 7%, state financial institutions tax increased $24 thousand, or 13%, due to the increase in capital. Debit card expenses increased $7 thousand, or 4%, primarily with increases in processing. Software expense increased $13 thousand, or 3%. Equipment expense increased $25 thousand, or 13%, with increasing costs of maintenance contracts and repairs. The Company’s third quarter efficiency ratio increased to 58.2% compared to 57.0% in the prior year.

Federal income tax expense was $756 thousand in the 2024 third quarter compared to $850 thousand in the 2023 third quarter. The effective tax rates for the 2024 and 2023 third quarters were 19% and 20%, respectively.

Average earning assets for the 2024 third quarter increased $31 million, or 3%, from the year-ago quarter, primarily reflecting a $48 million, or 7%, increase in average loans, a $36 million, or 10%, decrease in average securities, and a $19 million, or 50%, increase in interest-earning deposits in other banks, held mainly at the Federal Reserve Bank.

Average commercial loan balances for the quarter, including commercial real estate, increased $36 million, or 8%, from prior year levels, as construction loans were drawn, and borrowers used term loans to fund equipment and other purchases. Average residential mortgage balances increased $10 million, or 6%, above the prior year’s quarter as borrowers have been favoring adjustable-rate mortgages during this period of higher interest rates. The bank does not sell adjustable-rate mortgages to the secondary market. Home equity lines of credit increased $3 million from the prior year’s quarter as balances were drawn for expenses and to maintain the low interest rate on the first mortgage. Average consumer credit balances decreased $839 thousand, or 5%, versus the same quarter of the prior year. Commercial loan demand softened to somewhat muted levels during third quarter, with households and businesses alike preferring to limit borrowing until the election provides some clarity as to tax rates and inflation.

Nonperforming assets were $3.4 million, or 0.47%, of total loans on September 30, 2024, compared to $260 thousand, or 0.04% of total loans, a year ago. The identified commercial relationship mentioned above accounts for $2.8 million of the $3.4 million total nonperforming loans at September 30, 2024. Delinquent loan balances as of September 30, 2024, increased to 0.59% of total loans as compared to 0.23% on September 30, 2023. Net loan charge-offs recognized during third quarter 2024 were $4 million, or 2.2% of average loans annualized, compared to third quarter 2023 net loan recoveries of $119 thousand.

Average deposit balances increased on a quarter over prior year quarter comparison by $28 million, or 3%. For the third quarter 2024, the average cost of deposits amounted to 1.48%, as compared to 1.08% for the third quarter 2023. Third quarter 2024 increases in average deposit balances over the prior year quarter included money market accounts of $28 million and time deposits of $62 million. Noninterest-bearing accounts decreased $22 million from the prior year’s third quarter while savings and interest-bearing demand accounts declined $40 million. The average balance of short-term borrowings, which are customer repurchase agreements, decreased during the third quarter of 2024 by $9 million, or 28%, compared to the average for the same period in the prior year.

Shareholders’ equity totaled $115 million on September 30, 2024, with 2.7 million common shares outstanding. The average equity to assets ratio amounted to 9.43% for the quarter ended September 30, 2024, and 8.72% for the quarter ended September 30, 2023. The Company declared a third quarter dividend of $0.40 per share, producing an annualized yield of 4.2% based on September 30, 2024 closing price of $38.50.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $1.2 billion as of September 30, 2024. CSB provides a complete 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, Wayne, Tuscarawas, and Stark counties and Trust offices located in Millersburg, North Canton, and Wooster, Ohio. A loan production office was opened in Medina, Ohio on March 20, 2024.

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. See the non-GAAP disclosures at the end of this release for a reconciliation of GAAP and non-GAAP measures.

 

CSB BANCORP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

 

Quarters

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

 

2024

 

 

2024

 

 

2024

 

 

2023

 

 

2023

 

 

2024

 

 

2023

 

 

EARNINGS

 

3rd Qtr

 

 

2nd Qtr

 

 

1st Qtr

 

 

4th Qtr

 

 

3rd Qtr

 

 

9 months

 

 

9 months

 

 

Net interest income FTE (a)

$

 

9,248

 

$

 

8,959

 

$

 

9,190

 

$

 

9,377

 

$

 

8,871

 

$

 

27,397

 

$

 

26,897

 

 

Provision for credit loss expense

 

 

700

 

 

 

2,889

 

 

 

1,152

 

 

 

156

 

 

 

177

 

 

 

4,741

 

 

 

286

 

 

Noninterest income

 

 

1,809

 

 

 

1,741

 

 

 

1,772

 

 

 

1,678

 

 

 

1,705

 

 

 

5,322

 

 

 

5,066

 

 

Noninterest expenses

 

 

6,422

 

 

 

5,814

 

 

 

6,142

 

 

 

6,258

 

 

 

6,034

 

 

 

18,378

 

 

 

17,802

 

 

FTE adjustment(a)

 

 

34

 

 

 

34

 

 

 

42

 

 

 

32

 

 

 

34

 

 

 

110

 

 

 

101

 

 

Net income

 

 

3,145

 

 

 

1,615

 

 

 

2,933

 

 

 

3,697

 

 

 

3,481

 

 

 

7,693

 

 

 

11,059

 

 

Basic and Diluted earnings per share

 

 

1.18

 

 

 

0.61

 

 

 

1.10

 

 

 

1.38

 

 

 

1.30

 

 

 

2.89

 

 

 

4.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROA), annualized

 

 

1.05

 

%

 

0.56

 

%

 

1.02

 

%

 

1.25

 

%

 

1.19

 

%

 

0.88

 

%

 

1.28

 

%

Return on average common equity (ROE), annualized

 

 

11.14

 

 

 

5.89

 

 

 

10.84

 

 

 

14.22

 

 

 

13.63

 

 

 

9.30

 

 

 

14.85

 

 

Net interest margin FTE(a)

 

 

3.26

 

 

 

3.28

 

 

 

3.37

 

 

 

3.36

 

 

 

3.21

 

 

 

3.30

 

 

 

3.30

 

 

Efficiency ratio

 

 

58.17

 

 

 

54.22

 

 

 

56.00

 

 

 

56.67

 

 

 

56.99

 

 

 

56.15

 

 

 

55.70

 

 

Number of full-time equivalent employees

 

 

175

 

 

 

173

 

 

 

172

 

 

 

168

 

 

 

178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MARKET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per common share

$

 

43.25

 

$

 

41.43

 

$

 

41.11

 

$

 

40.43

 

$

 

37.96

 

 

 

 

 

 

 

 

Period-end common share market value

 

 

38.50

 

 

 

39.00

 

 

 

40.00

 

 

 

37.54

 

 

 

37.75

 

 

 

 

 

 

 

 

Market as a % of book

 

 

89.02

 

%

 

94.14

 

%

 

97.30

 

%

 

92.85

 

%

 

99.45

 

%

 

 

 

 

 

 

Price-to-earnings ratio

 

 

9.02

 

 

 

8.88

 

 

 

7.78

 

 

 

6.81

 

 

 

6.85

 

 

 

 

 

 

 

 

Average basic common shares outstanding

 

 

2,661,474

 

 

 

2,664,485

 

 

 

2,665,277

 

 

 

2,671,086

 

 

 

2,675,967

 

 

 

2,663,737

 

 

 

2,682,872

 

 

Average diluted common shares outstanding

 

 

2,661,474

 

 

 

2,664,485

 

 

 

2,665,277

 

 

 

2,671,086

 

 

 

2,675,967

 

 

 

2,663,737

 

 

 

2,682,872

 

 

Period end common shares outstanding

 

 

2,659,324

 

 

 

2,663,924

 

 

 

2,664,683

 

 

 

2,669,938

 

 

 

2,671,313

 

 

 

 

 

 

 

 

Common stock market capitalization

$

 

102,384

 

$

 

103,893

 

$

 

106,587

 

$

 

100,229

 

$

 

100,842

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross charge-offs

$

 

4,095

 

$

 

274

 

$

 

88

 

$

 

15

 

$

 

43

 

$

 

4,457

 

$

 

97

 

 

Net (recoveries) charge-offs

 

 

4,008

 

 

 

246

 

 

 

74

 

 

 

(5

)

 

 

(119

)

 

 

4,328

 

 

 

(125

)

 

Allowance for credit losses

 

 

7,224

 

 

 

10,587

 

 

 

7,136

 

 

 

6,607

 

 

 

6,691

 

 

 

 

 

 

 

 

Nonperforming assets (NPAs)

 

 

3,371

 

 

 

6,683

 

 

 

361

 

 

 

396

 

 

 

260

 

 

 

 

 

 

 

 

Net charge-off (recovery) / average loans ratio

 

 

2.20

 

%

 

0.14

 

%

 

0.04

 

%

 

0.00

 

%

 

(0.07

)

%

 

0.81

 

%

 

(0.03

)

%

Allowance for credit losses / period-end loans

 

 

1.00

 

 

 

1.47

 

 

 

1.00

 

 

 

0.94

 

 

 

0.98

 

 

 

 

 

 

 

 

NPAs/loans and other real estate

 

 

0.47

 

 

 

0.93

 

 

 

0.05

 

 

 

0.06

 

 

 

0.04

 

 

 

 

 

 

 

 

Allowance for credit losses / nonperforming loans

 

 

214

 

 

 

158

 

 

 

1,979

 

 

 

1,667

 

 

 

2,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL & LIQUIDITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period-end tangible equity to assets(b)

 

 

9.16

 

%

 

9.09

 

%

 

9.10

 

%

 

8.79

 

%

 

8.39

 

%

 

 

 

 

 

 

Average equity to assets

 

 

9.43

 

 

 

9.49

 

 

 

9.38

 

 

 

8.80

 

 

 

8.72

 

 

 

 

 

 

 

 

Average equity to loans

 

 

15.54

 

 

 

15.37

 

 

 

15.43

 

 

 

14.87

 

 

 

15.00

 

 

 

 

 

 

 

 

Average loans to deposits

 

 

68.99

 

 

 

70.54

 

 

 

69.78

 

 

 

67.47

 

 

 

66.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

 

1,191,037

 

$

 

1,161,533

 

$

 

1,160,661

 

$

 

1,172,324

 

$

 

1,162,029

 

$

 

1,171,156

 

$

 

1,153,549

 

 

Earning assets

 

 

1,127,405

 

 

 

1,097,706

 

 

 

1,097,704

 

 

 

1,107,002

 

 

 

1,096,679

 

 

 

1,107,678

 

 

 

1,088,525

 

 

Loans

 

 

723,129

 

 

 

717,105

 

 

 

705,294

 

 

 

693,779

 

 

 

675,283

 

 

 

715,205

 

 

 

657,698

 

 

Deposits

 

 

1,048,214

 

 

 

1,016,569

 

 

 

1,010,745

 

 

 

1,028,207

 

 

 

1,020,135

 

 

 

1,025,260

 

 

 

1,014,537

 

 

Shareholders' equity

 

 

112,352

 

 

 

110,219

 

 

 

108,837

 

 

 

103,164

 

 

 

101,294

 

 

 

110,476

 

 

 

99,538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ENDING BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

 

1,209,181

 

$

 

1,167,315

 

$

 

1,156,245

 

$

 

1,178,689

 

$

 

1,156,598

 

 

 

 

 

 

 

 

Earning assets

 

 

1,134,786

 

 

 

1,104,404

 

 

 

1,097,703

 

 

 

1,109,171

 

 

 

1,087,591

 

 

 

 

 

 

 

 

Loans

 

 

719,602

 

 

 

721,916

 

 

 

710,822

 

 

 

701,404

 

 

 

680,949

 

 

 

 

 

 

 

 

Deposits

 

 

1,070,531

 

 

 

1,023,835

 

 

 

1,010,115

 

 

 

1,027,427

 

 

 

1,018,075

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

115,008

 

 

 

110,368

 

 

 

109,555

 

 

 

107,939

 

 

 

101,410

 

 

 

 

 

 

 

 

Notes:

(a) - Net interest income on a fully-taxable 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, and is considered a non-GAAP measure.

(b) - Tangible equity is a non-GAAP measure, which is shareholders' equity net of goodwill.

 

CSB BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

September 30,

 

 

 

September 30,

 

(Dollars in thousands, except per share data)

 

2024

 

 

 

2023

 

ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

 

Cash and due from banks

$

 

26,108

 

 

$

 

20,409

 

Interest-bearing deposits with banks

 

 

69,535

 

 

 

 

29,000

 

Total cash and cash equivalents

 

 

95,643

 

 

 

 

49,409

 

Securities

 

 

 

 

 

 

 

Available-for-sale, at fair-value

 

 

131,718

 

 

 

 

145,330

 

Held-to-maturity

 

 

211,655

 

 

 

 

230,505

 

Equity securities

 

 

247

 

 

 

 

246

 

Restricted stock, at cost

 

 

1,520

 

 

 

 

1,561

 

Total securities

 

 

345,140

 

 

 

 

377,642

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

509

 

 

 

 

-

 

Loans

 

 

719,602

 

 

 

 

680,949

 

Less allowance for credit losses

 

 

7,224

 

 

 

 

6,691

 

Net loans

 

 

712,378

 

 

 

 

674,258

 

 

 

 

 

 

 

 

 

Premises and equipment, net

 

 

13,994

 

 

 

 

13,105

 

Goodwill

 

 

4,728

 

 

 

 

4,728

 

Bank owned life insurance

 

 

27,996

 

 

 

 

25,229

 

Accrued interest receivable and other assets

 

 

8,793

 

 

 

 

12,227

 

TOTAL ASSETS

$

 

1,209,181

 

 

$

 

1,156,598

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Noninterest-bearing

$

 

286,525

 

 

$

 

300,018

 

Interest-bearing

 

 

784,006

 

 

 

 

718,057

 

Total deposits

 

 

1,070,531

 

 

 

 

1,018,075

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

 

19,224

 

 

 

 

30,734

 

Other borrowings

 

 

1,296

 

 

 

 

1,808

 

Accrued interest payable and other liabilities

 

 

3,122

 

 

 

 

4,571

 

TOTAL LIABILITIES

 

 

1,094,173

 

 

 

 

1,055,188

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Common stock, $6.25 par value. Authorized 9,000,000 shares;

 

 

 

 

 

 

 

issued 2,980,602 shares in 2024 and 2023

 

 

18,629

 

 

 

 

18,629

 

Additional paid-in capital

 

 

9,815

 

 

 

 

9,815

 

Retained earnings

 

 

101,847

 

 

 

 

94,614

 

Treasury stock at cost - 321,278 shares in 2024

 

 

 

 

 

 

 

and 309,289 shares in 2023

 

 

(7,929

)

 

 

 

(7,481

)

Accumulated other comprehensive loss

 

 

(7,354

)

 

 

 

(14,167

)

TOTAL SHAREHOLDERS' EQUITY

 

 

115,008

 

 

 

 

101,410

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

 

1,209,181

 

 

$

 

1,156,598

 

 

CSB BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

 

 

Quarters ended

 

 

 

Nine months ended

 

(Unaudited)

 

September 30,

 

 

 

September 30,

 

(Dollars in thousands, except per share data)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

$

 

10,531

 

 

$

 

9,175

 

 

$

 

30,959

 

 

$

 

25,855

 

Taxable securities

 

 

1,782

 

 

 

 

1,910

 

 

 

 

5,489

 

 

 

 

5,867

 

Nontaxable securities

 

 

88

 

 

 

 

102

 

 

 

 

264

 

 

 

 

305

 

Other

 

 

789

 

 

 

 

531

 

 

 

 

1,537

 

 

 

 

1,520

 

Total interest and dividend income

 

 

13,190

 

 

 

 

11,718

 

 

 

 

38,249

 

 

 

 

33,547

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

3,898

 

 

 

 

2,772

 

 

 

 

10,687

 

 

 

 

6,484

 

Other

 

 

78

 

 

 

 

109

 

 

 

 

275

 

 

 

 

267

 

Total interest expense

 

 

3,976

 

 

 

 

2,881

 

 

 

 

10,962

 

 

 

 

6,751

 

Net interest income

 

 

9,214

 

 

 

 

8,837

 

 

 

 

27,287

 

 

 

 

26,796

 

Provision for credit loss expense

 

 

700

 

 

 

 

177

 

 

 

 

4,741

 

 

 

 

286

 

Net interest income, after provision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for credit loss expense

 

 

8,514

 

 

 

 

8,660

 

 

 

 

22,546

 

 

 

 

26,510

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

301

 

 

 

 

332

 

 

 

 

872

 

 

 

 

924

 

Trust services

 

 

274

 

 

 

 

259

 

 

 

 

951

 

 

 

 

769

 

Debit card interchange fees

 

 

535

 

 

 

 

525

 

 

 

 

1,570

 

 

 

 

1,579

 

Credit card fees

 

 

162

 

 

 

 

166

 

 

 

 

484

 

 

 

 

535

 

Earnings on bank owned life insurance

 

 

203

 

 

 

 

179

 

 

 

 

585

 

 

 

 

520

 

Gain on sale of loans

 

 

106

 

 

 

 

47

 

 

 

 

215

 

 

 

 

106

 

Unrealized gain (loss) on equity securities

 

 

17

 

 

 

 

(11

)

 

 

 

(12

)

 

 

 

2

 

Other

 

 

211

 

 

 

 

208

 

 

 

 

657

 

 

 

 

631

 

Total noninterest income

 

 

1,809

 

 

 

 

1,705

 

 

 

 

5,322

 

 

 

 

5,066

 

Noninterest expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

3,656

 

 

 

 

3,429

 

 

 

 

10,181

 

 

 

 

10,112

 

Occupancy expense

 

 

295

 

 

 

 

290

 

 

 

 

872

 

 

 

 

856

 

Equipment expense

 

 

224

 

 

 

 

199

 

 

 

 

649

 

 

 

 

595

 

Professional and director fees

 

 

391

 

 

 

 

366

 

 

 

 

1,160

 

 

 

 

1,073

 

Software expense

 

 

421

 

 

 

 

408

 

 

 

 

1,263

 

 

 

 

1,228

 

Marketing and public relations

 

 

162

 

 

 

 

124

 

 

 

 

432

 

 

 

 

383

 

Debit card expense

 

 

186

 

 

 

 

179

 

 

 

 

568

 

 

 

 

494

 

Financial institutions tax

 

 

216

 

 

 

 

192

 

 

 

 

648

 

 

 

 

576

 

FDIC insurance expense

 

 

132

 

 

 

 

131

 

 

 

 

396

 

 

 

 

380

 

Other expenses

 

 

739

 

 

 

 

716

 

 

 

 

2,209

 

 

 

 

2,105

 

Total noninterest expenses

 

 

6,422

 

 

 

 

6,034

 

 

 

 

18,378

 

 

 

 

17,802

 

Income before income taxes

 

 

3,901

 

 

 

 

4,331

 

 

 

 

9,490

 

 

 

 

13,774

 

Federal income tax provision

 

 

756

 

 

 

 

850

 

 

 

 

1,797

 

 

 

 

2,715

 

Net income

$

 

3,145

 

 

$

 

3,481

 

 

$

 

7,693

 

 

$

 

11,059

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

$

 

1.18

 

 

$

 

1.30

 

 

$

 

2.89

 

 

$

 

4.12

 

 

CSB BANCORP, INC.

NON-GAAP DISCLOSURES

 

NET INTEREST INCOME, FULLY-TAXABLE EQUIVALENT

 

 

Quarters ended

 

 

(Unaudited)

 

September 30,

 

 

(Dollars in thousands)

 

2024

 

 

 

2023

 

 

Net interest income

$

 

9,214

 

 

$

 

8,837

 

 

Taxable equivalent adjustment1

 

 

34

 

 

 

 

34

 

 

Net interest income, FTE

$

 

9,248

 

 

$

 

8,871

 

 

Net interest margin

 

 

3.25

 

%

 

 

3.20

 

%

Taxable equivalent adjustment1

 

 

0.01

 

 

 

 

0.01

 

 

Net interest margin, FTE

 

 

3.26

 

%

 

 

3.21

 

%

1 Net interest income on a fully-taxable 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, and is considered a non-GAAP measure.

 

PRE-PROVISION NET REVENUE

 

 

Quarters ended

 

(Unaudited)

 

September 30,

 

(Dollars in thousands)

 

2024

 

 

 

2023

 

Pre-Provision Net Revenue (PPNR)

 

 

 

 

 

 

 

Net interest income

$

 

9,214

 

 

$

 

8,837

 

Total noninterest income

 

 

1,809

 

 

 

 

1,705

 

Total revenue

 

 

11,023

 

 

 

 

10,542

 

 

 

 

 

 

 

 

 

Less: Noninterest expense

 

 

6,422

 

 

 

 

6,034

 

 

 

 

 

 

 

 

 

PPNR

$

 

4,601

 

 

$

 

4,508

 

 

TANGIBLE EQUITY

 

(Unaudited)

 

Sept 30,

 

 

 

Sept 30,

 

(Dollars in thousands)

 

2024

 

 

 

2023

 

Total Shareholders' Equity

$

 

115,008

 

 

$

 

101,410

 

Less: Goodwill

 

 

4,728

 

 

 

 

4,728

 

Tangible Shareholders' Equity

$

 

110,280

 

 

$

 

96,682

 

 

Paula J. Meiler, SVP & CFO
330.763.2873
paula.meiler@csb1.com

Source: CSB Bancorp, Inc.