CSB Bancorp, Inc. (OTC Pink: CSBB):
Second Quarter Highlights
|
|
Quarter Ended
|
|
|
|
Quarter Ended
|
|
||
Diluted earnings per share |
|
$ |
1.36 |
|
|
|
$ |
1.18 |
|
Net Income |
|
$ |
3,644,000 |
|
|
|
$ |
3,209,000 |
|
Return on average common equity |
|
|
14.62 |
% |
|
|
|
13.73 |
% |
Return on average assets |
|
|
1.27 |
% |
|
|
|
1.13 |
% |
CSB Bancorp, Inc. (OTC Pink: CSBB) today announced second quarter 2023 net income of $3,644,000, or $1.36 per basic and diluted share, as compared to $3,209,000, or $1.18 per basic and diluted share, for the same period in 2022. For the six-month period ended June 30, 2023 net income totaled $7,578,000 compared to $5,910,000 for the same period last year, an increase of 28%.
Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 14.62% and 1.27%, respectively, compared with 13.73% and 1.13% for the second quarter of 2022. For the six-month period ended June 30, 2023 ROE and ROA were 15.49% and 1.33% as compared to 12.48% and 1.05% for the comparable period in 2022.
Eddie Steiner, President and CEO stated, “Economic activity is relatively stable within the bank’s market area, with low unemployment and a slowing overall rate of inflation. Demand for commercial loans has increased, as well as home construction lending. Overall deposit volume has been steady, with depositors shifting some balances to higher interest rate products. The bank’s liquidity remains sufficient to support continued organic loan growth.”
Pre-Provision Net Revenue (PPNR) totaled $4.7 million during the quarter, an increase of $1 million, or 29%, from the prior year’s second quarter of 2022. Net interest income increased $1.4 million, or 18%, in the second quarter of 2023 compared to the same period in 2022.
Loan interest income including fees increased $2.7 million, or 44%, during second quarter 2023 as compared to the same quarter in 2022. The increase was mainly due to rate increases as well as an $85 million increase in average loan balances. Securities interest income increased $279 thousand, or 16%, during the second quarter 2023 compared to the same quarter 2022 from rate increases. Loan yields for second quarter 2023 averaged 5.30%, an increase of 109 basis points from the 2022 second quarter average of 4.21%, while securities yields for second quarter 2023 averaged 2.13% compared to 1.81% in the second quarter 2022.
Interest expense rose $1.8 million, or 492%, during second quarter 2023 as compared to second quarter 2022. The increase follows a period of rapid interest rate increases spurred by the Federal Reserve followed by competitive pressures from banks and others to secure adequate funding. The cost to fund gross earning assets for the second quarter 2023 was 0.82% as compared to 0.14% for the second quarter of 2022. Higher interest rates are anticipated to continue in 2023.
The fully taxable equivalent (FTE) net interest margin was 3.33% compared to 2.87% for second quarter 2022. Compared to the 2022 second quarter, FTE net interest income increased $1.4 million, or 18%, reflecting 46 basis points of net interest margin expansion. Average earning assets increased $13 million, with loan growth being largely funded out of short-term investments. The higher interest rate environment drove the increase in earning asset yields coupled with loan growth, which was partially offset by the higher cost of funds. The tax equivalency effect on the margin was 0.01% in second quarter 2023 and 2022.
Noninterest income decreased 3%, compared to second quarter of 2022. The decrease was primarily the result of a $91 thousand, or 62%, decline in gain on sale of mortgages to the secondary market, as higher interest rates sharply curbed fixed-rate purchase and refinancing originations, along with a lack of housing inventory for sale. Offsetting increases were recognized in service charges on deposit accounts and earnings on bank owned life insurance.
Noninterest expense increased 5% from second quarter 2022. Salary and employee benefit costs decreased $23 thousand, or less than 1%, compared to the prior year quarter, primarily resulting from the capitalization of employee salary and benefit costs on the increased loan originations. FDIC assessment increased $103 thousand or 137% with the increase in rate in 2023. Software expense increased $95 thousand, or 29%, with the deployment of new reporting software and upgrades. Professional and directors’ fees increased $56 thousand, or 17% primarily reflecting an increase in audit, tax and accounting fees in 2023. Marketing and public relations increased by $26 thousand, or 24%, reflecting a return to normalized levels. Data line and phone expense decreased $14 thousand below the prior year quarter due to a contract negotiation. The Company’s second quarter efficiency ratio decreased to 56.2% compared to 61.1%.
Federal income tax expense was $894 thousand in the 2023 second quarter compared to $774 thousand in the 2022 second quarter. The effective tax rate for the 2023 second quarter and 2022 second quarter were 19.7% and 19.4%, respectively.
Average earning assets for the 2023 second quarter increased $13 million, or 1%, from the year-ago quarter, primarily reflecting a $85 million, or 15%, increase in average loans, a $7 million, or 2%, decrease in average securities, and a $65 million, or 65%, decrease 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 $58 million, or 15%, 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 $24 million, or 18%, above the prior year’s quarter as borrowers have been favoring adjustable-rate mortgages during this period of higher interest rates. Home equity lines of credit increased $1 million from the prior year’s quarter as balances were drawn and new loans originated. Average consumer credit balances increased $1 million, or 7%, versus the same quarter of the prior year. Increased organic loan demand continues to be largely dependent on the pace at which excess liquidity is absorbed by businesses and households and restoration of borrower confidence.
Nonperforming assets were $255 thousand, or 0.04%, of total loans on June 30, 2023, compared to $690 thousand, or 0.12% of total loans, a year ago. Delinquent loan balances as of June 30, 2023, were stable at 0.15% of total loans as compared to 0.18% on June 30, 2022. Net loan recoveries recognized during second quarter 2023 were $10 thousand, or (0.01)% annualized, compared to second quarter 2022 net loan recoveries of $308 thousand.
On January 1, 2023, CSB adopted ASU 2016-13 known as current expected credit losses or “CECL”. The allowance for credit losses amounted to $6.6 million, or 0.99% of total loans on June 30, 2023, as compared to 1.25% on June 30, 2022. The allowance for credit losses on off-balance sheet commitments on June 30, 2023 was $328 thousand, as compared to a June 30, 2022 balance of $141 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.
Average deposit balances grew on a quarter over prior year quarter comparison by $18 million, or 2%. For the second quarter 2023, the average cost of deposits amounted to 0.84%, as compared to 0.14% for the second quarter 2022. During the second quarter 2023, increases in average deposit balances over the prior year quarter included interest-bearing demand and savings accounts of $4 million, and time deposits of $23 million. Noninterest-bearing accounts decreased $9 million from the prior year second quarter. The average balance of securities sold under repurchase agreement during the second quarter of 2023 decreased by $9 million, or 23%, compared to the average for the same period in the prior year.
Shareholders’ equity totaled $100 million on June 30, 2023, with 2.7 million common shares outstanding. The average equity to assets ratio amounted to 8.68% for the quarter ended June 30, 2023, and 8.25% for the quarter ended June 30, 2022. The Company declared a second quarter dividend of $0.38 per share, producing an annualized yield of 3.9% based on the June 30, 2023 closing price of $38.88.
About CSB Bancorp, Inc.
CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $1.2 billion as of June 30, 2023. 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.
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.
Non-GAAP measures
CSB believes certain non-GAAP financial measures to be helpful in understanding CSB’s results of operations. Reconciliations between non-GAAP and the comparable GAAP financial measures have been provided as part of this news release.
CSB BANCORP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS |
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(Unaudited) |
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Quarters |
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(Dollars in thousands, except per share data) |
|
2023 |
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2023 |
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2022 |
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|
2022 |
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|
2022 |
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2023 |
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|
2022 |
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EARNINGS |
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
6 months |
|
|
6 months |
|
|
|||||||
Net interest income FTE |
$ |
|
9,027 |
|
$ |
|
8,999 |
|
$ |
|
9,304 |
|
$ |
|
8,596 |
|
$ |
|
7,666 |
|
$ |
|
18,026 |
|
$ |
|
14,568 |
|
|
Provision (Recovery) of credit losses |
|
|
140 |
|
|
|
(31 |
) |
|
|
- |
|
|
|
(250 |
) |
|
|
(345 |
) |
|
|
109 |
|
|
|
(645 |
) |
|
Other income |
|
|
1,733 |
|
|
|
1,628 |
|
|
|
1,612 |
|
|
|
1,675 |
|
|
|
1,782 |
|
|
|
3,361 |
|
|
|
3,424 |
|
|
Other expenses |
|
|
6,049 |
|
|
|
5,719 |
|
|
|
6,206 |
|
|
|
5,945 |
|
|
|
5,774 |
|
|
|
11,768 |
|
|
|
11,242 |
|
|
FTE adjustment |
|
|
33 |
|
|
|
34 |
|
|
|
36 |
|
|
|
36 |
|
|
|
36 |
|
|
|
67 |
|
|
|
73 |
|
|
Net income |
|
|
3,644 |
|
|
|
3,934 |
|
|
|
3,753 |
|
|
|
3,650 |
|
|
|
3,209 |
|
|
|
7,578 |
|
|
|
5,910 |
|
|
Basic and Diluted earnings per share |
|
|
1.36 |
|
|
|
1.46 |
|
|
|
1.39 |
|
|
|
1.35 |
|
|
|
1.18 |
|
|
|
2.82 |
|
|
|
2.17 |
|
|
|
|
|
|
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PERFORMANCE RATIOS |
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Return on average assets (ROA), annualized |
|
|
1.27 |
|
% |
|
1.39 |
|
% |
|
1.27 |
|
% |
|
1.25 |
|
% |
|
1.13 |
|
% |
|
1.33 |
|
% |
|
1.05 |
|
% |
Return on average common equity (ROE), annualized |
|
|
14.62 |
|
|
|
16.39 |
|
|
|
15.94 |
|
|
|
15.24 |
|
|
|
13.73 |
|
|
|
15.49 |
|
|
|
12.48 |
|
|
Net interest margin FTE |
|
|
3.33 |
|
|
|
3.37 |
|
|
|
3.33 |
|
|
|
3.12 |
|
|
|
2.87 |
|
|
|
3.35 |
|
|
|
2.73 |
|
|
Efficiency ratio |
|
|
56.24 |
|
|
|
53.86 |
|
|
|
56.83 |
|
|
|
57.87 |
|
|
|
61.13 |
|
|
|
55.06 |
|
|
|
62.50 |
|
|
Number of full-time equivalent employees |
|
|
172 |
|
|
|
170 |
|
|
|
172 |
|
|
|
172 |
|
|
|
171 |
|
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||
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MARKET DATA |
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Book value per common share |
$ |
|
37.36 |
|
$ |
|
36.93 |
|
$ |
|
35.43 |
|
$ |
|
33.97 |
|
$ |
|
34.46 |
|
|
|
|
|
|
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Period-end common share market value |
|
|
38.88 |
|
|
|
38.00 |
|
|
|
38.50 |
|
|
|
39.00 |
|
|
|
38.00 |
|
|
|
|
|
|
|
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||
Market as a % of book |
|
|
104.07 |
|
% |
|
102.90 |
|
% |
|
108.66 |
|
% |
|
114.81 |
|
% |
|
110.27 |
|
% |
|
|
|
|
|
|
||
Price-to-earnings ratio |
|
|
6.99 |
|
|
|
7.06 |
|
|
|
7.84 |
|
|
|
8.92 |
|
|
|
9.31 |
|
|
|
|
|
|
|
|
||
Average basic common shares |
|
|
2,680,526 |
|
|
|
2,692,304 |
|
|
|
2,707,576 |
|
|
|
2,712,686 |
|
|
|
2,718,024 |
|
|
|
2,686,382 |
|
|
|
2,718,024 |
|
|
Average diluted common shares |
|
|
2,680,526 |
|
|
|
2,692,304 |
|
|
|
2,707,576 |
|
|
|
2,712,686 |
|
|
|
2,718,024 |
|
|
|
2,686,382 |
|
|
|
2,718,024 |
|
|
Period end common shares outstanding |
|
|
2,680,325 |
|
|
|
2,680,625 |
|
|
|
2,707,576 |
|
|
|
2,707,576 |
|
|
|
2,718,024 |
|
|
|
|
|
|
|
|
||
Common stock market capitalization |
$ |
|
104,211 |
|
$ |
|
101,864 |
|
$ |
|
104,242 |
|
$ |
|
105,595 |
|
$ |
|
103,285 |
|
|
|
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|
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||
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|||||||
ASSET QUALITY |
|
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Gross charge-offs |
$ |
|
15 |
|
$ |
|
39 |
|
$ |
|
217 |
|
$ |
|
29 |
|
$ |
|
11 |
|
$ |
|
54 |
|
$ |
|
42 |
|
|
Net (recoveries) charge-offs |
|
|
(10 |
) |
|
|
4 |
|
|
|
170 |
|
|
|
10 |
|
|
|
(308 |
) |
|
|
(6 |
) |
|
|
(295 |
) |
|
Allowance for credit losses |
|
|
6,559 |
|
|
|
6,307 |
|
|
|
6,838 |
|
|
|
7,008 |
|
|
|
7,268 |
|
|
|
|
|
|
|
|
||
Nonperforming assets (NPAs) |
|
|
255 |
|
|
|
218 |
|
|
|
256 |
|
|
|
685 |
|
|
|
690 |
|
|
|
|
|
|
|
|
||
Net charge-off (recovery) / average loans ratio |
|
|
(0.01 |
) |
% |
|
0.00 |
|
% |
|
0.11 |
|
% |
|
0.01 |
|
% |
|
(0.21 |
) |
% |
|
0.00 |
|
% |
|
(0.10 |
) |
% |
Allowance for credit losses / period-end loans |
|
|
0.99 |
|
|
|
0.97 |
|
|
|
1.09 |
|
|
|
1.15 |
|
|
|
1.25 |
|
|
|
|
|
|
|
|
||
NPAs/loans and other real estate |
|
|
0.04 |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.11 |
|
|
|
0.12 |
|
|
|
|
|
|
|
|
||
Allowance for credit losses / nonperforming loans |
|
|
2,577 |
|
|
|
2,893 |
|
|
|
2,667 |
|
|
|
1,022 |
|
|
|
1,054 |
|
|
|
|
|
|
|
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||
|
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|||||||
CAPITAL & LIQUIDITY |
|
|
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|
|
|
|
|
|
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|
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|||||||
Period-end tangible equity to assets |
|
|
8.29 |
|
% |
|
8.28 |
|
% |
|
7.90 |
|
% |
|
7.54 |
|
% |
|
7.93 |
|
% |
|
|
|
|
|
|
||
Average equity to assets |
|
|
8.68 |
|
|
|
8.48 |
|
|
|
7.96 |
|
|
|
8.20 |
|
|
|
8.25 |
|
|
|
|
|
|
|
|
||
Average equity to loans |
|
|
15.15 |
|
|
|
15.27 |
|
|
|
15.06 |
|
|
|
15.98 |
|
|
|
16.31 |
|
|
|
|
|
|
|
|
||
Average loans to deposits |
|
|
65.05 |
|
|
|
63.19 |
|
|
|
59.84 |
|
|
|
58.15 |
|
|
|
57.65 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
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|
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|
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AVERAGE BALANCES |
|
|
|
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|
|
|
|
|
|
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|
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|
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|||||||
Assets |
$ |
|
1,151,403 |
|
$ |
|
1,147,033 |
|
$ |
|
1,172,785 |
|
$ |
|
1,159,523 |
|
$ |
|
1,136,318 |
|
$ |
|
1,149,240 |
|
$ |
|
1,137,452 |
|
|
Earning assets |
|
|
1,085,751 |
|
|
|
1,082,996 |
|
|
|
1,108,231 |
|
|
|
1,094,197 |
|
|
|
1,072,376 |
|
|
|
1,084,381 |
|
|
|
1,075,305 |
|
|
Loans |
|
|
660,004 |
|
|
|
637,392 |
|
|
|
620,243 |
|
|
|
594,820 |
|
|
|
574,824 |
|
|
|
648,760 |
|
|
|
567,671 |
|
|
Deposits |
|
|
1,014,631 |
|
|
|
1,008,721 |
|
|
|
1,036,559 |
|
|
|
1,022,851 |
|
|
|
997,108 |
|
|
|
1,011,692 |
|
|
|
995,270 |
|
|
Shareholders' equity |
|
|
99,958 |
|
|
|
97,319 |
|
|
|
93,404 |
|
|
|
95,043 |
|
|
|
93,750 |
|
|
|
98,646 |
|
|
|
95,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|||||||
ENDING BALANCES |
|
|
|
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|
|
|
|
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|
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|
|
|
|
|
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Assets |
$ |
|
1,156,157 |
|
$ |
|
1,143,394 |
|
$ |
|
1,159,108 |
|
$ |
|
1,161,830 |
|
$ |
|
1,126,778 |
|
|
|
|
|
|
|
|
||
Earning assets |
|
|
1,088,561 |
|
|
|
1,080,939 |
|
|
|
1,094,876 |
|
|
|
1,096,302 |
|
|
|
1,064,770 |
|
|
|
|
|
|
|
|
||
Loans |
|
|
664,605 |
|
|
|
647,773 |
|
|
|
627,171 |
|
|
|
609,971 |
|
|
|
582,185 |
|
|
|
|
|
|
|
|
||
Deposits |
|
|
1,056,017 |
|
|
|
1,007,507 |
|
|
|
1,023,417 |
|
|
|
1,029,274 |
|
|
|
993,113 |
|
|
|
|
|
|
|
|
||
Shareholders' equity |
|
|
100,140 |
|
|
|
99,007 |
|
|
|
95,920 |
|
|
|
91,981 |
|
|
|
93,662 |
|
|
|
|
|
|
|
|
||
CSB BANCORP, INC. CONSOLIDATED BALANCE SHEETS |
|||||||||
(Unaudited) |
|
June 30, |
|
|
|
June 30, |
|
||
(Dollars in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
||
ASSETS |
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
|
|
|
|
|
||
Cash and due from banks |
$ |
|
21,897 |
|
|
$ |
|
18,901 |
|
Interest-earning deposits in other banks |
|
|
38,329 |
|
|
|
|
84,465 |
|
Total cash and cash equivalents |
|
|
60,226 |
|
|
|
|
103,366 |
|
Securities |
|
|
|
|
|
|
|
||
Available-for-sale, at fair-value |
|
|
145,357 |
|
|
|
|
144,566 |
|
Held-to-maturity |
|
|
238,222 |
|
|
|
|
248,261 |
|
Equity securities |
|
|
257 |
|
|
|
|
251 |
|
Restricted stock, at cost |
|
|
1,607 |
|
|
|
|
4,614 |
|
Total securities |
|
|
385,443 |
|
|
|
|
397,692 |
|
|
|
|
|
|
|
|
|
||
Loans held for sale |
|
|
184 |
|
|
|
|
428 |
|
Loans |
|
|
664,605 |
|
|
|
|
582,185 |
|
Less allowance for credit losses |
|
|
6,559 |
|
|
|
|
7,268 |
|
Net loans |
|
|
658,046 |
|
|
|
|
574,917 |
|
|
|
|
|
|
|
|
|
||
Premises and equipment, net |
|
|
13,240 |
|
|
|
|
13,615 |
|
Goodwill |
|
|
4,728 |
|
|
|
|
4,728 |
|
Bank owned life insurance |
|
|
25,050 |
|
|
|
|
24,369 |
|
Accrued interest receivable and other assets |
|
|
9,240 |
|
|
|
|
7,663 |
|
TOTAL ASSETS |
$ |
|
1,156,157 |
|
|
$ |
|
1,126,778 |
|
|
|
|
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
||
LIABILITIES |
|
|
|
|
|
|
|
||
Deposits: |
|
|
|
|
|
|
|
||
Noninterest-bearing |
$ |
|
315,200 |
|
|
$ |
|
328,422 |
|
Interest-bearing |
|
|
706,471 |
|
|
|
|
664,691 |
|
Total deposits |
|
|
1,021,671 |
|
|
|
|
993,113 |
|
|
|
|
|
|
|
|
|
||
Short-term borrowings |
|
|
28,520 |
|
|
|
|
33,885 |
|
Other borrowings |
|
|
1,862 |
|
|
|
|
2,594 |
|
Accrued interest payable and other liabilities |
|
|
3,964 |
|
|
|
|
3,524 |
|
TOTAL LIABILITIES |
|
|
1,056,017 |
|
|
|
|
1,033,116 |
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
||
Common stock, $6.25 par value. Authorized 9,000,000 shares; |
|
|
|
|
|
|
|
||
issued 2,980,602 shares in 2023 and 2022 |
|
|
18,629 |
|
|
|
|
18,629 |
|
Additional paid-in capital |
|
|
9,815 |
|
|
|
|
9,815 |
|
Retained earnings |
|
|
92,149 |
|
|
|
|
80,940 |
|
Treasury stock at cost - 300,277 shares in 2023 |
|
|
|
|
|
|
|
||
and 262,578 shares in 2022 |
|
|
(7,137 |
) |
|
|
|
(5,719 |
) |
Accumulated other comprehensive loss |
|
|
(13,316 |
) |
|
|
|
(10,003 |
) |
TOTAL SHAREHOLDERS' EQUITY |
|
|
100,140 |
|
|
|
|
93,662 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
1,156,157 |
$ |
1,126,778 |
|||||
CSB BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||||||
|
|
Quarter ended |
|
|
|
Six months ended |
|
||||||||||||
(Unaudited) |
|
June 30, |
|
|
|
June 30, |
|
||||||||||||
(Dollars in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
||||
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans, including fees |
$ |
|
8,711 |
|
|
$ |
|
6,032 |
|
|
$ |
|
16,680 |
|
|
$ |
|
11,809 |
|
Taxable securities |
|
|
1,945 |
|
|
|
|
1,660 |
|
|
|
|
3,957 |
|
|
|
|
2,941 |
|
Nontaxable securities |
|
|
102 |
|
|
|
|
108 |
|
|
|
|
203 |
|
|
|
|
218 |
|
Other |
|
|
444 |
|
|
|
|
203 |
|
|
|
|
989 |
|
|
|
|
277 |
|
Total interest and dividend income |
|
|
11,202 |
|
|
|
|
8,003 |
|
|
|
|
21,829 |
|
|
|
|
15,245 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits |
|
|
2,128 |
|
|
|
|
344 |
|
|
|
|
3,712 |
|
|
|
|
693 |
|
Other |
|
|
80 |
|
|
|
|
29 |
|
|
|
|
158 |
|
|
|
|
57 |
|
Total interest expense |
|
|
2,208 |
|
|
|
|
373 |
|
|
|
|
3,870 |
|
|
|
|
750 |
|
Net interest income |
|
|
8,994 |
|
|
|
|
7,630 |
|
|
|
|
17,959 |
|
|
|
|
14,495 |
|
Provision (Recovery) of credit losses |
|
|
140 |
|
|
|
|
(345 |
) |
|
|
|
109 |
|
|
|
|
(645 |
) |
Net interest income, after provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(recovery) of credit losses |
|
|
8,854 |
|
|
|
|
7,975 |
|
|
|
|
17,850 |
|
|
|
|
15,140 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service charges on deposit accounts |
|
|
300 |
|
|
|
|
289 |
|
|
|
|
592 |
|
|
|
|
554 |
|
Trust services |
|
|
252 |
|
|
|
|
253 |
|
|
|
|
510 |
|
|
|
|
517 |
|
Debit card interchange fees |
|
|
533 |
|
|
|
|
543 |
|
|
|
|
1,054 |
|
|
|
|
1,038 |
|
Credit card fees |
|
|
192 |
|
|
|
|
191 |
|
|
|
|
369 |
|
|
|
|
346 |
|
Earnings on bank owned life insurance |
|
|
172 |
|
|
|
|
168 |
|
|
|
|
341 |
|
|
|
|
334 |
|
Gain on sale of loans |
|
|
56 |
|
|
|
|
147 |
|
|
|
|
59 |
|
|
|
|
265 |
|
Market value change in equity securities |
|
|
4 |
|
|
|
|
3 |
|
|
|
|
13 |
|
|
|
|
4 |
|
Other |
|
|
224 |
|
|
|
|
188 |
|
|
|
|
423 |
|
|
|
|
366 |
|
Total noninterest income |
|
|
1,733 |
|
|
|
|
1,782 |
|
|
|
|
3,361 |
|
|
|
|
3,424 |
|
Noninterest expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits |
|
|
3,389 |
|
|
|
|
3,412 |
|
|
|
|
6,683 |
|
|
|
|
6,567 |
|
Occupancy expense |
|
|
284 |
|
|
|
|
276 |
|
|
|
|
566 |
|
|
|
|
548 |
|
Equipment expense |
|
|
189 |
|
|
|
|
197 |
|
|
|
|
396 |
|
|
|
|
411 |
|
Professional and director fees |
|
|
386 |
|
|
|
|
330 |
|
|
|
|
707 |
|
|
|
|
606 |
|
Software expense |
|
|
421 |
|
|
|
|
326 |
|
|
|
|
820 |
|
|
|
|
659 |
|
Marketing and public relations |
|
|
136 |
|
|
|
|
110 |
|
|
|
|
259 |
|
|
|
|
221 |
|
Debit card expense |
|
|
169 |
|
|
|
|
185 |
|
|
|
|
315 |
|
|
|
|
349 |
|
Financial institutions tax |
|
|
192 |
|
|
|
|
194 |
|
|
|
|
384 |
|
|
|
|
389 |
|
FDIC assessment |
|
|
178 |
|
|
|
|
75 |
|
|
|
|
249 |
|
|
|
|
158 |
|
Other expenses |
|
|
705 |
|
|
|
|
669 |
|
|
|
|
1,389 |
|
|
|
|
1,334 |
|
Total noninterest expenses |
|
|
6,049 |
|
|
|
|
5,774 |
|
|
|
|
11,768 |
|
|
|
|
11,242 |
|
Income before income taxes |
|
|
4,538 |
|
|
|
|
3,983 |
|
|
|
|
9,443 |
|
|
|
|
7,322 |
|
Federal income tax provision |
|
|
894 |
|
|
|
|
774 |
|
|
|
|
1,865 |
|
|
|
|
1,412 |
|
Net income |
$ |
|
3,644 |
|
|
$ |
|
3,209 |
|
|
$ |
|
7,578 |
|
|
$ |
|
5,910 |
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
$ |
|
1.36 |
|
|
$ |
|
1.18 |
|
|
$ |
|
2.82 |
|
|
$ |
|
2.17 |
|
CSB BANCORP, INC. NON-GAAP DISCLOSURES
NET INTEREST INCOME, FULLY-TAXABLE EQUIVALENT |
||||||||||
|
|
Quarter ended |
|
|
||||||
|
|
June 30, |
|
|
||||||
(Dollars in thousands) |
|
2023 |
|
|
|
2022 |
|
|
||
Net interest income |
$ |
|
8,994 |
|
|
$ |
|
7,630 |
|
|
Taxable equivalent adjustment1 |
|
|
33 |
|
|
|
|
36 |
|
|
Net interest income, FTE |
$ |
|
9,027 |
|
|
$ |
|
7,666 |
|
|
Net interest margin |
|
|
3.32 |
|
% |
|
|
2.86 |
|
% |
Taxable equivalent adjustment1 |
|
|
0.01 |
|
|
|
|
0.01 |
|
|
Net interest margin, FTE |
|
|
3.33 |
|
% |
|
|
2.87 |
|
% |
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 |
||||||||||
|
|
Quarter ended |
|
|||||||
|
|
June 30, |
|
|||||||
(Dollars in thousands) |
|
2023 |
|
|
|
2022 |
|
|||
Pre-Provision Net Revenue (PPNR) |
|
|
|
|
|
|
|
|||
Net interest income |
$ |
|
8,994 |
|
|
$ |
|
7,630 |
|
|
Total noninterest income |
|
|
1,733 |
|
|
|
|
1,782 |
|
|
Total revenue |
|
|
10,727 |
|
|
|
|
9,412 |
|
|
|
|
|
|
|
|
|
|
|||
Less: Noninterest expense |
|
|
6,049 |
|
|
|
|
5,774 |
|
|
|
|
|
|
|
|
|
|
|||
PPNR |
$ |
|
4,678 |
|
|
$ |
|
3,638 |
|
|
TANGIBLE EQUITY |
||||||||||
|
|
June 30, |
|
|
|
June 30, |
|
|||
(Dollars in thousands) |
|
2023 |
|
|
|
2022 |
|
|||
Total Shareholders' Equity |
$ |
|
100,140 |
|
|
$ |
|
93,662 |
|
|
Less: Goodwill |
|
|
4,728 |
|
|
|
|
4,728 |
|
|
Tangible Shareholders' Equity |
$ |
|
95,412 |
|
|
$ |
|
88,934 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230725719121/en/
Contacts
Paula J. Meiler, SVP & CFO
330.763.2873
paula.meiler@csb1.com
