CSB Bancorp, Inc. Reports Second Quarter Earnings

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MILLERSBURG, Ohio--(BUSINESS WIRE)-- CSB Bancorp, Inc. (OTC ID: CSBB):

Second Quarter Highlights

		Quarter Ended June 30, 2026					Quarter Ended June 30, 2025
Diluted earnings per share		$	1.80				$	1.41
Net Income		$	4,735,000				$	3,727,000
Return on average common equity			14.48	%				12.48	%
Return on average assets			1.48	%				1.23	%

CSB Bancorp, Inc. (OTC ID: CSBB) today announced second quarter 2026 net income of $4,735,000 or $1.80 per basic and diluted share, as compared to $3,727,000, or $1.41 per basic and diluted share, for the same period in 2025. For the six-month period ended June 30, 2026 net income totaled $9,179,000 compared to $7,343,000 for the same period last year, an increase of 25%.

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 14.48% and 1.48%, respectively, compared with 12.48% and 1.23% for the second quarter of 2025. Pre-Provision Net Revenue (“PPNR”) (a non-GAAP measure) totaled $6.5 million during the quarter, an increase of $1.2 million, or 24%, from the prior year’s second quarter. Net interest income increased $1.5 million, or 15%, noninterest income increased $175 thousand, or 10%, and noninterest expense increased $465 thousand, or 7%, in the second quarter of 2026 compared to the same period in 2025. For the six-month period ended June 30, 2026 ROE and ROA were 14.26% and 1.45% as compared to 12.53% and 1.22% for the comparable period in 2025.

Eddie Steiner, President and CEO stated, “A relatively stable environment for interest rates and employment levels has fostered increased business expansion and additional home buying activity. Real GDP growth advanced at 2.1% annualized in the first quarter and appears to have sustained the pace through second quarter. Economic activity remains somewhat tempered by persistent inflation and global uncertainties that cloud the outlook for energy prices, tariffs, and other federal government actions. Consumer debt levels and delinquencies have been increasing as households contend with the higher cost of living expenses."

Provision for credit loss expense for the quarter decreased $29 thousand from second quarter 2025. The allowance for expected credit losses (“ACL”) amounted to $13.5 million, or 1.56% of total loans, on June 30, 2026, as compared to $8.3 million or 1.05% of total loans on June 30, 2025. The allowance for credit losses on off-balance sheet commitments on June 30, 2026 was $583 thousand, as compared to a June 30, 2025 balance of $493 thousand. The increase in the ACL is primarily related to the individually evaluated loan relationship reported in prior periods. CSB has no allowance for credit losses related to available-for-sale or held-to-maturity debt securities, as there is no meaningful loss expectation on these securities.

Loan interest income including fees increased $1.5 million, or 13%, during second quarter 2026 as compared to the same quarter in 2025. The increase was primarily the result of an $83 million average volume increase, augmented by a 13 basis point (“bp”) increase in yield over the prior year’s quarter. Securities interest income increased $197 thousand, or 11%, during second quarter 2026 compared to the same quarter 2025 with average yield in the portfolio improving as lower yielding securities continue to pay down and mature. Loan yields in second quarter 2026 averaged 6.05%, an increase of 13 bps from the 2025 second quarter average of 5.92%. Securities yields for second quarter 2026 averaged 2.59% as compared to 2.27% in the second quarter of 2025, while overnight funds averaged 3.71% compared to 4.47% in the second quarter 2025.

Interest expense declined $35 thousand, or 1%, during second quarter 2026 as compared to second quarter 2025. The cost to fund gross earning assets for the second quarter of 2026 declined to 1.17% as compared to 1.25% for the second quarter of 2025.

The fully taxable equivalent (“FTE”) net interest margin (a non-GAAP measure) was 3.92% for second quarter 2026, compared to 3.61% in the second quarter of 2025. FTE net interest income increased $1.5 million, or 15%, with a $65 million increase in average earning assets as well as a 23 bp increase in the yield on assets. The mix shift into loans primarily drove the increase in earnings from assets. The cost of interest-bearing liabilities declined 10 basis points as rates on time deposits have been slowly declining over the past year. Tax equivalency effect on net interest margin was 0.01% for both 2026 and 2025.

Noninterest income increased $175 thousand, or 10%, compared to second quarter of 2025. The increase was primarily the result of a $49 thousand increase in debit card interchange fees, $42 thousand increase in credit card fees, a $37 thousand increase in earnings on bank owned life insurance, and a $28 thousand increase in service charges on deposit accounts.

Noninterest expense increased $465 thousand, or 7%, from second quarter 2025. Salary and employee benefits increased $328 thousand, or 8%, compared to the prior year quarter, with increases in base salaries and benefits, partially due to increased headcount as the company was able to reduce vacancies and add several new positions supporting growth. Software expense increased $83 thousand, or 19%, primarily due to new loan production software. Debit card expense increased $23 thousand, or 12%. Professional fees increased $19 thousand, or 5%, with increases to legal expense, audit and accounting, and director’s fees. The Company’s second quarter efficiency ratio decreased to 53.06% compared to 56.62% in the prior year.

Federal income tax expense was $1.2 million in second quarter 2026 compared to $903 thousand in the second quarter of 2025. The effective tax rate for the 2026 and 2025 second quarters was 20%, respectively.

Average earning assets for the second quarter of 2026 increased $65 million, or 6% from the year-ago quarter, primarily reflecting an $83 million, or 11%, increase in average loans, an $8 million, or 3%, decrease in average securities, and a $9 million, or 15%, 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 $56 million, or 10%, 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 $18 million, or 10%, above the prior year’s quarter with borrowers 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 $9 million from the prior year’s quarter as borrowers covered expenses and avoided refinancing their lower interest rate mortgages. Average consumer credit balances decreased $504 thousand, or 3%, versus the same quarter of the prior year on lower recreational vehicle loan volume. Commercial loan demand for operating cash flow and equipment investments is somewhat constrained with households and businesses remaining cautious about discretionary borrowing until there is more confidence in price and employment stability following tensions in the Middle East and rising oil prices. Construction and development and commercial real estate borrowing have continued to exhibit fairly steady demand.

Nonperforming loans were $7.3 million, or 0.84%, of total loans on June 30, 2026, compared to $1.4 million, or 0.17% of total loans, a year ago. The increase in nonperforming loans which includes nonaccrual loans and loans past due 90 days and still accruing, was attributable to a business relationship which has communicated that liquidation may provide greater economic value than continuing operations, due to cash flow pressure. The Bank believes it is well-secured on this relationship. Net loan charge-offs recognized during second quarter 2026 were $28 thousand, compared to second quarter 2025 net loan charge-offs of $362 thousand. The prior year net loan charge-offs were related to a previously reported voluntary liquidation of a commercial credit, for which no further book balances remain and any future recoveries are uncertain at this time.

Average deposit balances increased on a quarter over prior year quarter comparison by $52 million, or 5%. For second quarter 2026, the average cost of deposits amounted to 1.25%, as compared to 1.32% for second quarter 2025. Second quarter 2026 increases in average deposit balances over the prior year quarter included interest bearing checking accounts of $15 million, savings accounts of $6 million, and time deposits of $23 million. Noninterest-bearing accounts increased $8 million from the prior year’s second quarter. The average balance of securities sold under repurchase agreement during the second quarter of 2026 increased by $621 thousand, or 3%, compared to the average for the same period in the prior year.

Shareholders’ equity totaled $133 million on June 30, 2026, with 2.6 million common shares outstanding. The average equity to assets ratio amounted to 10.21% for the quarter ended June 30, 2026. The Company declared a second quarter dividend of $0.43 per share, producing an annualized yield of 2.4% based on June 30, 2026 closing price of $72.00.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $1.3 billion as of June 30, 2026. 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, and a loan production office located in Medina, 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. 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)		2026				2026				2025				2025				2025				2026				2025
EARNINGS		2nd Qtr				1st Qtr				4th Qtr				3rd Qtr				2nd Qtr				6 months				6 months
Net interest income FTE (a)	$		11,904		$		11,493		$		11,450		$		10,968		$		10,376		$		23,397		$		20,088
Provision for credit loss expense			585				495				3,858				501				614				1,080				1,016
Noninterest income			1,952				1,872				1,956				1,866				1,777				3,824				3,473
Noninterest expenses			7,343				7,305				7,249				7,133				6,878				14,648				13,359
FTE adjustment(a)			28				28				30				30				31				56				62
Net income			4,735				4,444				1,869				4,151				3,727				9,179				7,343
Basic and Diluted earnings per share			1.80				1.69				0.71				1.57				1.41				3.49				2.78
PERFORMANCE RATIOS
Return on average assets (ROA), annualized			1.48		%		1.42		%		0.58		%		1.31		%		1.23		%		1.45		%		1.22		%
Return on average common equity (ROE), annualized			14.48				14.03				5.83				13.19				12.48				14.26				12.53
Net interest margin FTE(a)			3.92				3.87				3.73				3.67				3.61				3.89				3.55
Efficiency ratio			53.06				54.75				54.11				55.56				56.62				53.89				56.71
Number of full-time equivalent employees			185				182				178				181				175
MARKET DATA
Book value per common share	$		50.49		$		49.18		$		48.07		$		47.56		$		46.11
Period-end common share market value			72.00				62.36				54.00				49.50				43.50
Market as a % of book			142.60				126.80		%		112.30		%		104.09		%		94.34		%
Price-to-earnings ratio			12.48				11.59				10.65				9.48				9.01
Average basic common shares outstanding			2,627,015				2,627,015				2,629,229				2,636,028				2,639,244				2,627,015				2,641,879
Average diluted common shares outstanding			2,627,015				2,627,015				2,629,229				2,636,028				2,639,244				2,627,015				2,641,879
Period end common shares outstanding			2,627,015				2,627,015				2,627,015				2,632,498				2,638,921
Common stock market capitalization	$		189,145		$		163,821		$		141,859		$		130,309		$		114,793
ASSET QUALITY
Gross charge-offs	$		41		$		13		$		31		$		39		$		368		$		55		$		403
Net charge-offs			28				7				26				11				362				35				391
Allowance for credit losses			13,528				12,947				12,470				8,720				8,251
Nonperforming assets (NPAs)			7,287				1,018				652				746				1,358
Net charge-off / average loans ratio			0.01		%		0.00		%		0.01		%		0.01		%		0.19		%		0.01		%		0.10		%
Allowance for credit losses / period-end loans			1.56				1.52				1.50				1.08				1.05
NPAs/loans and other real estate			0.84				0.12				0.08				0.09				0.17
Allowance for credit losses / nonperforming loans			186				1,272				1,913				1,169				608
CAPITAL & LIQUIDITY
Period-end tangible equity to assets(b)			9.92		%		9.87		%		9.43		%		9.69		%		9.48		%
Average equity to assets			10.21				10.12				9.90				9.96				9.82
Average equity to loans			15.21				15.20				15.56				15.55				15.36
Average loans to deposits			76.83				76.41				72.62				72.97				72.86
AVERAGE BALANCES
Assets	$		1,284,910		$		1,269,557		$		1,285,617		$		1,253,262		$		1,220,306		$		1,277,294		$		1,209,129
Earning assets			1,218,626				1,205,187				1,216,492				1,184,077				1,153,677				1,211,943				1,142,643
Loans			862,329				845,298				818,312				802,858				779,664				853,860				767,830
Deposits			1,122,413				1,106,338				1,126,878				1,100,283				1,070,136				1,114,418				1,059,395
Shareholders' equity			131,165				128,465				127,296				124,818				119,779				129,823				118,175
ENDING BALANCES
Assets	$		1,294,216		$		1,265,503		$		1,292,736		$		1,248,357		$		1,237,969
Earning assets			1,224,138				1,200,667				1,228,856				1,178,781				1,163,268
Loans			869,348				852,718				829,778				810,048				788,070
Deposits			1,133,407				1,101,821				1,127,915				1,096,596				1,089,344
Shareholders' equity			132,630				129,203				126,280				125,190				121,683

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 21% 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)		June 30,					June 30,
(Dollars in thousands, except per share data)		2026					2025
ASSETS
Cash and cash equivalents
Cash and due from banks	$		24,345			$		27,000
Interest-bearing deposits with banks			57,182					68,290
Total cash and cash equivalents			81,527					95,290
Securities
Available-for-sale, at fair-value			121,067					110,067
Held-to-maturity			174,421					195,048
Equity securities			325					273
Restricted stock, at cost			1,645					1,520
Total securities			297,458					306,908
Loans held for sale			150					-
Loans			869,348					788,070
Less allowance for credit losses			13,528					8,251
Net loans			855,820					779,819
Premises and equipment, net			13,604					13,795
Goodwill			4,728					4,728
Bank owned life insurance			31,689					28,669
Accrued interest receivable and other assets			9,240					8,760
TOTAL ASSETS	$		1,294,216			$		1,237,969
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$		287,118			$		282,784
Interest-bearing			846,289					806,560
Total deposits			1,133,407					1,089,344
Short-term borrowings			22,014					22,364
Other borrowings			694					965
Accrued interest payable and other liabilities			5,471					3,613
TOTAL LIABILITIES			1,161,586					1,116,286
SHAREHOLDERS' EQUITY
Common stock, $6.25 par value. Authorized 9,000,000 shares;
issued 2,980,602 shares in 2026 and 2025			18,629					18,629
Additional paid-in capital			9,815					9,815
Retained earnings			119,066					108,309
Treasury stock at cost - 353,587 shares in 2026
and 341,681 shares in 2025			(9,293	)				(8,730	)
Accumulated other comprehensive loss			(5,587	)				(6,340	)
TOTAL SHAREHOLDERS' EQUITY			132,630					121,683
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$		1,294,216			$		1,237,969

CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
		Quarters ended										Six months ended
(Unaudited)		June 30,										June 30,
(Dollars in thousands, except per share data)		2026					2025					2026					2025
Interest and dividend income:
Loans, including fees	$		12,998			$		11,497			$		25,524			$		22,372
Taxable securities			1,885					1,678					3,847					3,473
Nontaxable securities			65					75					129					150
Other			476					678					894					1,214
Total interest and dividend income			15,424					13,928					30,394					27,209
Interest expense:
Deposits			3,486					3,515					6,924					7,042
Other			62					68					129					141
Total interest expense			3,548					3,583					7,053					7,183
Net interest income			11,876					10,345					23,341					20,026
Provision for credit loss expense			585					614					1,080					1,016
Net interest income, after provision
for credit loss expense			11,291					9,731					22,261					19,010
Noninterest income
Service charges on deposit accounts			325					297					631					592
Trust services			289					268					607					546
Debit card interchange fees			599					550					1,142					1,065
Credit card fees			193					151					384					301
Earnings on bank owned life insurance			266					229					521					445
Gain on sale of loans			75					81					127					130
Unrealized gain on equity securities			17					6					41					6
Other			188					195					371					388
Total noninterest income			1,952					1,777					3,824					3,473
Noninterest expenses
Salaries and employee benefits			4,249					3,921					8,482					7,618
Occupancy expense			336					352					684					708
Equipment expense			210					223					418					429
Professional and director fees			411					392					869					805
Software expense			524					441					1,045					844
Marketing and public relations			153					154					284					259
Debit card expense			221					198					429					409
Financial institutions tax			252					233					505					463
FDIC insurance expense			143					135					290					285
Other expenses			844					829					1,642					1,539
Total noninterest expenses			7,343					6,878					14,648					13,359
Income before income taxes			5,900					4,630					11,437					9,124
Federal income tax provision			1,165					903					2,258					1,781
Net income	$		4,735			$		3,727			$		9,179			$		7,343
Net income per share:
Basic and diluted	$		1.80			$		1.41			$		3.49			$		2.78

CSB BANCORP, INC.
NON-GAAP DISCLOSURES
NET INTEREST INCOME, FULLY-TAXABLE EQUIVALENT
		Quarters ended										Six months ended
(Unaudited)		June 30,										June 30,
(Dollars in thousands)		2026					2025					2026					2025
Net interest income	$		11,876			$		10,345			$		23,341			$		20,026
Taxable equivalent adjustment1			28					31					56					62
Net interest income, FTE	$		11,904			$		10,376			$		23,397			$		20,088
Net interest margin			3.91		%			3.60		%			3.88		%			3.54		%
Taxable equivalent adjustment1			0.01					0.01					0.01					0.01
Net interest margin, FTE			3.92		%			3.61		%			3.89		%			3.55		%

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										Six months ended
(Unaudited)		June 30,										June 30,
(Dollars in thousands)		2026					2025					2026					2025
Pre-Provision Net Revenue (PPNR)
Net interest income	$		11,876			$		10,345			$		23,341			$		20,026
Total noninterest income			1,952					1,777					3,824					3,473
Total revenue			13,828					12,122					27,165					23,499
Less: Noninterest expense			7,343					6,878					14,648					13,359
PPNR (Non-GAAP)	$		6,485			$		5,244			$		12,517			$		10,140

TANGIBLE EQUITY
(Unaudited)		June 30,					June 30,
(Dollars in thousands)		2026					2025
Total Shareholders' Equity (GAAP)	$		132,630			$		121,683
Less: Goodwill			4,728					4,728
Tangible Shareholders' Equity (Non-GAAP)	$		127,902			$		116,955

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260721759797/en/

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

Source: CSB Bancorp, Inc.