CSB Bancorp, Inc. Reports Second Quarter Earnings

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

Second Quarter Highlights

		Quarter Ended June 30, 2025					Quarter Ended June 30, 2024
Diluted earnings per share		$	1.41				$	0.61
Net Income		$	3,727,000				$	1,615,000
Return on average common equity			12.48	%				5.89	%
Return on average assets			1.23	%				0.56	%

CSB Bancorp, Inc. (OTCID: CSBB) today announced second quarter 2025 net income of $3,727,000 or $1.41 per basic and diluted share, as compared to $1,615,000, or $0.61 per basic and diluted share, for the same period in 2024. For the six-month period ended June 30, 2025 net income totaled $7,343,000 compared to $4,548,000 for the same period last year, an increase of 62%.

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 12.48% and 1.23%, respectively, compared with 5.89% and 0.56% for the second quarter of 2024. Pre-Provision Net Revenue (“PPNR”) (a non-GAAP measure) totaled $5.2 million during the quarter, an increase of $392 thousand, or 8%, from the prior year’s second quarter. Net interest income increased $1.4 million, or 16%, noninterest income increased $36 thousand, or 2%, and noninterest expense increased $1.1 million, or 18%, in the second quarter of 2025 compared to the same period in 2024. For the six-month period ended June 30, 2025 ROE and ROA were 12.53% and 1.22% as compared to 8.35% and 0.79% for the comparable period in 2024.

Eddie Steiner, President and CEO stated, “While eventual economic outcomes from changing trade, immigration, and tax policies remain unclear, the U.S. economy has shown few signs of significant deterioration. Unemployment remains just above 4% nationally, and a little under 5% in Ohio. Inflation pressures remain above target, but the Consumer Price Index has held to a 2.7% increase over the past twelve months. Construction and acquisition financing activity remains steady, while businesses and households continue to be cautious about discretionary spending. The Bank’s net loan balances have increased 10% from year ago levels. Book value per common share at $46.11 is up 11% from a year ago, with the market price at 9 times earnings of the most recent twelve-month period.”

Provision for credit loss expense for the quarter decreased $2.3 million from second quarter 2024 as nonperforming loans continue to decrease since the second quarter of 2024. The court liquidation of one commercial credit of approximately $200 thousand continues with the bank holding a priority lien on auction proceeds held by the court receiver which will be applied to the loan balances when released. The remaining real estate has been sold by the court appointed receiver and the auction proceeds will be received during third quarter 2025.

The allowance for expected credit losses (“ACL”) amounted to $8.3 million, or 1.05% of total loans, on June 30, 2025, as compared to $10.6 million or 1.47% of total loans on June 30, 2024. The allowance for credit losses on off-balance sheet commitments on June 30, 2025 was $493 thousand, as compared to a June 30, 2024 balance of $477 thousand. The decrease in the ACL is related primarily to the charge-off of one commercial credit facility in 2024. 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 $1.3 million, or 13%, during second quarter 2025 as compared to the same quarter in 2024. The increase was primarily the result of a $63 million volume increase, augmented by an 18 basis point (“bp”) increase in yield over the prior year’s quarter. Securities interest income decreased $152 thousand, or 8%, during the second quarter 2025 compared to the same quarter 2024 as the Company continues to deploy cash flow from investments into loan originations. Loan yields for second quarter 2025 averaged 5.92%, an increase of 18 bps from the 2024 second quarter average of 5.74%, while overnight funds and securities yields for second quarter 2025 averaged 4.46% and 2.27%, respectively, compared to 5.57% and 2.20% in the second quarter 2024.

Interest expense rose $5 thousand, or less than 1%, during second quarter 2025 as compared to second quarter 2024. The cost to fund gross earning assets for the second quarter 2025 declined to 1.25% as compared to 1.31% for the second quarter of 2024.

The fully taxable equivalent (“FTE”) net interest margin (a non-GAAP measure) was 3.61% for the second quarter 2025, compared to 3.28% for the second quarter 2024. Compared to the 2024 second quarter, FTE net interest income increased $1.4 million, or 16%, with a $56 million increase in average earning assets as well as a 26 bp increase in the yield on assets. The mix shift into loans from securities primarily drove the increase in earnings from assets. The cost of interest earning liabilities declined with the decrease in short-term interest rates resulting in a 12 bp lower cost of deposits and repurchase agreements. Tax equivalency effect on net interest margin was 0.01% for both 2025 and 2024.

Noninterest income increased $36 thousand, or 2%, compared to second quarter of 2024. The increase was primarily the result of a $35 thousand increase in earnings on bank owned life insurance, a $29 thousand increase in unrealized gains on securities, and a $22 thousand increase on debit card interchange fees. Offsetting decreases were recognized as follows: $15 thousand decrease in trust service fees representing a one-time fee in 2024 that did not recur in 2025 and a $14 thousand decrease in credit card fees.

Noninterest expense increased $1.1 million, or 18%, from second quarter 2024. Salary and employee benefits increased $865 thousand, or 28%, compared to the prior year quarter, with increases in base salaries, medical, and retirement benefits. During second quarter 2024, a one-time reduction of incentive compensation and profit-sharing benefits was recorded to recognize the effect of the commercial credit loss on net income. Occupancy expense increased $58 thousand, or 20%, primarily due to heating system and elevator repairs. Software expense increased $27 thousand, or 7%. Equipment expense increased $22 thousand, or 11%. Professional fees decreased $45 thousand, or 10%, with decreases in legal fees for loan collections. The Company’s second quarter efficiency ratio increased slightly to 56.6% compared to 54.2% in the prior year.

Federal income tax expense was $903 thousand in second quarter 2025 compared to $348 thousand in the 2024 second quarter. The effective tax rate for the 2025 and 2024 second quarters was 20% and 18%, respectively.

Average earning assets for the 2025 second quarter increased $56 million, or 5%, from the year-ago quarter, primarily reflecting a $63 million, or 9%, increase in average loans, a $40 million, or 11%, decrease in average securities, and a $34 million, or 123%, 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 $48 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 $13 million, or 8%, 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 borrowers covered expenses and avoided refinancing their lower interest rate mortgages. Average consumer credit balances decreased $1.4 million, or 9%, versus the same quarter of the prior year on lower volume of loans for recreational vehicles. 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 after implementation of tariff and tax rate proposals. Construction and development and commercial real estate borrowing have continued to exhibit fairly steady demand.

Nonperforming loans were $1.4 million, or 0.17%, of total loans on June 30, 2025, compared to $6.7 million, or 0.93% of total loans, a year ago. Delinquent loan balances as of June 30, 2025, decreased to 0.30% of total loans as compared to 1.16% on June 30, 2024. Net loan charge-offs recognized during second quarter 2025 were $363 thousand, compared to second quarter 2024 net loan charge-offs of $246 thousand.

Average deposit balances increased on a quarter over prior year quarter comparison by $54 million, or 5%. For second quarter 2025, the average cost of deposits amounted to 1.32%, as compared to 1.38% for second quarter 2024. Second quarter 2025 increases in average deposit balances over the prior year quarter included savings accounts of $3 million, money market accounts of $4 million, and time deposits of $39 million. Noninterest-bearing accounts decreased $2 million from the prior year’s second quarter while interest-bearing demand accounts increased $10 million. The average balance of securities sold under repurchase agreement during the second quarter of 2025 decreased by $3 million, or 12%, compared to the average for the same period in the prior year.

Shareholders’ equity totaled $122 million on June 30, 2025, with 2.6 million common shares outstanding. The average equity to assets ratio amounted to 9.82% for the quarter ended June 30, 2025. The Company declared a second quarter dividend of $0.41 per share, producing an annualized yield of 3.8% based on June 30, 2025 closing price of $43.50.

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, 2025. 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)		2025				2025				2024				2024				2024				2025				2024
EARNINGS		2nd Qtr				1st Qtr				4th Qtr				3rd Qtr				2nd Qtr				6 months				6 months
Net interest income FTE (a)	$		10,376		$		9,712		$		9,599		$		9,248		$		8,959		$		20,088		$		18,149
Provision for credit loss expense			614				402				2,290				700				2,889				1,016				4,041
Noninterest income			1,777				1,696				1,780				1,809				1,741				3,473				3,513
Noninterest expenses			6,878				6,481				6,211				6,422				5,814				13,359				11,956
FTE adjustment(a)			31				31				33				34				34				62				76
Net income			3,727				3,616				2,319				3,145				1,615				7,343				4,548
Basic and Diluted earnings per share			1.41				1.37				0.87				1.18				0.61				2.78				1.71
PERFORMANCE RATIOS
Return on average assets (ROA), annualized			1.23		%		1.22		%		0.76		%		1.05		%		0.56		%		1.22		%		0.79		%
Return on average common equity (ROE), annualized			12.48				12.58				7.99				11.14				5.89				12.53				8.35
Net interest margin FTE(a)			3.61				3.48				3.33				3.26				3.28				3.55				3.33
Efficiency ratio			56.62				56.81				54.68				58.17				54.22				56.71				55.12
Number of full-time equivalent employees			175				173				166				175				173
MARKET DATA
Book value per common share	$		46.11		$		44.80		$		43.33		$		43.25		$		41.43
Period-end common share market value			43.50				44.00				38.30				38.50				39.00
Market as a % of book			94.34		%		98.20		%		88.39		%		89.02		%		94.14		%
Price-to-earnings ratio			9.01				10.92				10.19				9.02				8.88
Average basic common shares outstanding			2,639,244				2,644,543				2,654,073				2,661,474				2,664,485				2,641,879				2,664,879
Average diluted common shares outstanding			2,639,244				2,644,543				2,654,073				2,661,474				2,664,485				2,641,879				2,664,879
Period end common shares outstanding			2,638,921				2,641,547				2,650,089				2,659,324				2,663,924
Common stock market capitalization	$		114,793		$		116,228		$		101,498		$		102,384		$		103,893
ASSET QUALITY
Gross charge-offs	$		368		$		35		$		1,937		$		4,095		$		274		$		403		$		362
Net charge-offs			362				29				1,928				4,008				246				391				320
Allowance for credit losses			8,251				7,974				7,595				7,224				10,587
Nonperforming assets (NPAs)			1,358				1,597				1,719				3,371				6,683
Net charge-off / average loans ratio			0.19		%		0.02		%		1.05		%		2.20		%		0.14		%		0.10		%		0.09		%
Allowance for credit losses / period-end loans			1.05				1.05				1.03				1.00				1.47
NPAs/loans and other real estate			0.17				0.21				0.23				0.47				0.93
Allowance for credit losses / nonperforming loans			608				499				445				214				158
CAPITAL & LIQUIDITY
Period-end tangible equity to assets(b)			9.48		%		9.36		%		9.28		%		9.16		%		9.09		%
Average equity to assets			9.82				9.73				9.52				9.43				9.49
Average equity to loans			15.36				15.42				15.80				15.54				15.37
Average loans to deposits			72.86				72.09				68.50				68.99				70.54
AVERAGE BALANCES
Assets	$		1,220,306		$		1,197,828		$		1,211,960		$		1,191,037		$		1,161,533		$		1,209,129		$		1,161,106
Earning assets			1,153,677				1,131,483				1,145,031				1,127,405				1,097,706				1,142,643				1,097,705
Loans			779,664				755,860				730,413				723,129				717,105				767,830				711,199
Deposits			1,070,136				1,048,534				1,066,229				1,048,214				1,016,569				1,059,395				1,013,657
Shareholders' equity			119,779				116,554				115,430				112,352				110,219				118,175				109,528
ENDING BALANCES
Assets	$		1,237,969		$		1,218,640		$		1,191,500		$		1,209,181		$		1,167,315
Earning assets			1,163,268				1,148,625				1,121,675				1,134,786				1,104,404
Loans			788,070				761,240				737,641				719,602				721,916
Deposits			1,089,344				1,070,777				1,044,887				1,070,531				1,023,835
Shareholders' equity			121,683				118,335				114,835				115,008				110,368

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)		June 30,					June 30,
(Dollars in thousands, except per share data)		2025					2024
ASSETS
Cash and cash equivalents
Cash and due from banks	$		27,000			$		19,873
Interest-bearing deposits with banks			68,290					36,332
Total cash and cash equivalents			95,290					56,205
Securities
Available-for-sale, at fair-value			110,067					127,279
Held-to-maturity			195,048					216,899
Equity securities			273					230
Restricted stock, at cost			1,520					1,520
Total securities			306,908					345,928
Loans held for sale			-					228
Loans			788,070					721,916
Less allowance for credit losses			8,251					10,587
Net loans			779,819					711,329
Premises and equipment, net			13,795					13,538
Goodwill			4,728					4,728
Bank owned life insurance			28,669					25,793
Accrued interest receivable and other assets			8,760					9,566
TOTAL ASSETS	$		1,237,969			$		1,167,315
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$		282,784			$		277,749
Interest-bearing			806,560					746,086
Total deposits			1,089,344					1,023,835
Short-term borrowings			22,364					27,842
Other borrowings			965					1,326
Accrued interest payable and other liabilities			3,613					3,944
TOTAL LIABILITIES			1,116,286					1,056,947
SHAREHOLDERS' EQUITY
Common stock, $6.25 par value. Authorized 9,000,000 shares;
issued 2,980,602 shares in 2025 and 2024			18,629					18,629
Additional paid-in capital			9,815					9,815
Retained earnings			108,309					99,766
Treasury stock at cost - 341,681 shares in 2025
and 316,678 shares in 2024			(8,730	)				(7,757	)
Accumulated other comprehensive loss			(6,340	)				(10,085	)
TOTAL SHAREHOLDERS' EQUITY			121,683					110,368
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$		1,237,969			$		1,167,315

CSB BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME
		Quarters ended										Six months ended
(Unaudited)		June 30,										June 30,
(Dollars in thousands, except per share data)		2025					2024					2025					2024
Interest and dividend income:
Loans, including fees	$		11,497			$		10,219			$		22,372			$		20,428
Taxable securities			1,678					1,817					3,473					3,707
Nontaxable securities			75					88					150					176
Other			678					379					1,214					748
Total interest and dividend income			13,928					12,503					27,209					25,059
Interest expense:
Deposits			3,515					3,489					7,042					6,789
Other			68					89					141					197
Total interest expense			3,583					3,578					7,183					6,986
Net interest income			10,345					8,925					20,026					18,073
Provision for credit loss expense			614					2,889					1,016					4,041
Net interest income, after provision
for credit loss expense			9,731					6,036					19,010					14,032
Noninterest income
Service charges on deposit accounts			297					291					592					571
Trust services			268					283					546					677
Debit card interchange fees			550					528					1,065					1,035
Credit card fees			151					165					301					322
Earnings on bank owned life insurance			229					194					445					382
Gain on sale of loans			81					73					130					109
Unrealized gain (loss) on equity securities			6					(23	)				6					(29	)
Other			195					230					388					446
Total noninterest income			1,777					1,741					3,473					3,513
Noninterest expenses
Salaries and employee benefits			3,921					3,056					7,618					6,525
Occupancy expense			352					294					708					577
Equipment expense			223					201					429					425
Professional and director fees			392					437					805					769
Software expense			441					414					844					842
Marketing and public relations			154					142					259					270
Debit card expense			198					193					409					382
Financial institutions tax			233					216					463					432
FDIC insurance expense			135					129					285					264
Other expenses			829					732					1,539					1,470
Total noninterest expenses			6,878					5,814					13,359					11,956
Income before income taxes			4,630					1,963					9,124					5,589
Federal income tax provision			903					348					1,781					1,041
Net income	$		3,727			$		1,615			$		7,343			$		4,548
Net income per share:
Basic and diluted	$		1.41			$		0.61			$		2.78			$		1.71

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)		2025					2024					2025					2024
Net interest income	$		10,345			$		8,925			$		20,026					18,073
Taxable equivalent adjustment1			31					34					62					76
Net interest income, FTE	$		10,376			$		8,959			$		20,088			$		18,149
Net interest margin			3.60		%			3.27		%			3.54		%			3.31		%
Taxable equivalent adjustment1			0.01					0.01					0.01					0.02
Net interest margin, FTE			3.61		%			3.28		%			3.55		%			3.33		%

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)		2025					2024				2025					2024
Pre-Provision Net Revenue (PPNR)
Net interest income	$		10,345			$		8,925		$		20,026			$		18,073
Total noninterest income			1,777					1,741				3,473					3,513
Total revenue			12,122					10,666				23,499					21,586
Less: Noninterest expense			6,878					5,814				13,359					11,956
PPNR (Non-GAAP)	$		5,244			$		4,852		$		10,140			$		9,630

TANGIBLE EQUITY
(Unaudited)		June 30,					June 30,
(Dollars in thousands)		2025					2024
Total Shareholders' Equity (GAAP)	$		121,683			$		110,368
Less: Goodwill			4,728					4,728
Tangible Shareholders' Equity (Non-GAAP)	$		116,955			$		105,640

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250722431708/en/

Paula J. Meiler, SVP & CFO

330.763.2873

paula.meiler@csb1.com

Source: CSB Bancorp, Inc.