MILLERSBURG, Ohio--(BUSINESS WIRE)--October 21, 2025--
CSB Bancorp, Inc. (OTC ID: CSBB):
Third Quarter Highlights
Quarter Ended Quarter Ended
September 30, 2025 September 30, 2024
--------------------- ---------------------
Diluted earnings
per share $ 1.57 $ 1.18
Net Income $ 4,151,000 $ 3,145,000
Return on average
common equity 13.19% 11.14%
Return on average
assets 1.31% 1.05%
CSB Bancorp, Inc. (OTC ID: CSBB) today announced third quarter 2025 net income of $4,151,000 or $1.57 per basic and diluted share, as compared to $3,145,000, or $1.18 per basic and diluted share, for the same period in 2024. For the nine-month period ended September 30, 2025, net income totaled $11,494,000 compared to $7,693,000 for the same period last year, an increase of 49%.
Annualized returns on average common equity ("ROE") and average assets ("ROA") for the quarter were 13.19% and 1.31%, respectively, compared with 11.14% and 1.05% for the third quarter of 2024. Pre-Provision Net Revenue ("PPNR") (a non-GAAP measure) totaled $5.7 million during the quarter, an increase of $1.1 million, or 23%, from the prior year's third quarter. Net interest income increased $1.7 million, or 19%, noninterest income increased $57 thousand, or 3%, and noninterest expense increased $711 thousand, or 11%, in the third quarter of 2025 compared to the same period in 2024. For the nine-month period ended September 30, 2025 ROE and ROA were 12.76% and 1.26% as compared to 9.30% and 0.88% for the comparable period in 2024.
Eddie Steiner, President and CEO stated, "The U.S. economy grew during third quarter, with real GDP estimated to have increased by about 3% on an annualized basis after sticky inflation, which still hovers near 3%. Employment is slowing, national unemployment is now about 4.5% and net new jobs are dwindling. Although job reports are notorious for future revisions, the signs were clear enough that the Fed began lowering short-term interest rates at its September meeting in an effort to support the economy. This is a shift in Fed posture, as the deteriorating jobs picture seems to have surmounted inflation concerns for the time being. Additional Fed cuts are anticipated in coming months to spur economic investment. The federal government shutdown, now three weeks old, further complicates the outlook as shutdowns of this length have fairly consistently resulted in dampening economic momentum. However, the first rate cut appears to have already been a boost to consumer loan demand and has also resulted in lower funding costs for most banks. Locally, the overall economy appears to be in good shape at the moment. Our total loan balances are up 10% since the beginning of the year, largely on construction and business investments while the cost of deposits has declined five basis points compared to the prior year nine-month period.
Provision for credit loss expense for the quarter decreased $199 thousand from third quarter 2024 as nonperforming loans continue to decrease since the third quarter of 2024. The court liquidation of one commercial credit of approximately $47 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 allowance for credit losses ("ACL") amounted to $8.7 million, or 1.08% of total loans, on September 30, 2025, as compared to $7.2 million or 1.00% of total loans on September 30, 2024. The allowance for credit losses on off-balance sheet commitments on September 30, 2025 was $514 thousand, as compared to a September 30, 2024 balance of $532 thousand. The increase in the ACL is related primarily to the weighted average life extension of loans held in the portfolio. 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 $1.6 million, or 15%, during third quarter 2025 as compared to the same quarter in 2024. The increase was primarily the result of an $80 million volume increase in loans, augmented by a 19 basis point ("bp") increase in yield over the prior year's quarter. Securities interest income decreased $102 thousand, or 5%, during the third quarter 2025 compared to the same quarter 2024 as the Company continues to deploy cash flow from investments into loan originations. Loan yields for third quarter 2025 averaged 5.99%, compared to the 2024 third quarter average of 5.80%, while overnight funds and securities yields for third quarter 2025 averaged 4.43% and 2.31%, respectively, compared to 5.41% and 2.17% in the third quarter 2024.
Interest expense declined $200 thousand, or 5%, during third quarter 2025 as compared to third quarter 2024. The cost to fund gross earning assets for the third quarter of 2025 declined to 1.27% as compared to 1.40% for the third quarter of 2024.
The fully taxable equivalent ("FTE") net interest margin (a non-GAAP measure) was 3.67% compared to 3.26% for the third quarter 2024. Compared to the 2024 third quarter, FTE net interest income increased $1.7 million, or 19%, with a $57 million increase in average earning assets as well as a 27 bp increase in the yield on assets. The mix shift into loans 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 22 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 $57 thousand, or 3%, compared to third quarter of 2024. The increase was primarily the result of a $26 thousand increase in earnings on bank owned life insurance, a $28 thousand increase in debit card interchange fees, a $20 thousand increase in Trust Services, and a $20 thousand increase in credit card fees. Offsetting decreases were recognized as follows: $41 thousand decrease in gain on loans sold to the secondary market and a $21 thousand decrease in unrealized gain on equity securities.
Noninterest expense increased $711 thousand, or 11%, from third quarter 2024. Salary and employee benefits increased $453 thousand, or 12%, compared to the prior year quarter, with increases in base salaries, medical, and incentive compensation, partially due to reduced vacancies and several new positions. Professional fees increased $111 thousand, or 28%, with increases to legal expense and workflow improvement. Software expense increased $77 thousand, or 18%, primarily due to new loan production software. Occupancy expense increased $28 thousand, or 9%, primarily due to repairs, while equipment expense decreased $24 thousand, or 11%. Marketing and public relations decreased $7 thousand, or 4%. The Company's third quarter efficiency ratio decreased to 55.6% compared to 58.2% in the prior year.
Federal income tax expense was $1 million in third quarter 2025 compared to $756 thousand in the 2024 third quarter. The effective tax rate for the 2025 and 2024 third quarters was 20% and 19%, respectively.
Average earning assets for the third quarter of 2025 increased $57 million, or 5%, from the year-ago quarter, primarily reflecting an $80 million, or 11%, increase in average loans, a $39 million, or 11%, decrease in average securities, and a $16 million, or 28%, 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 $63 million, or 13%, 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 $14 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 $5 million from the prior year's quarter as borrowers covered expenses and avoided refinancing their lower interest rate mortgages. Average consumer credit balances decreased $2 million, or 13%, 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, tax rate and other fiscal initiatives. Construction and development and commercial real estate borrowing have continued to exhibit fairly steady demand.
Nonperforming loans were $746 thousand, or 0.09%, of total loans on September 30, 2025, compared to $3.4 million, or 0.47% of total loans, a year ago. Delinquent loan balances as of September 30, 2025, decreased to 0.29% of total loans as compared to 0.59% on September 30, 2024. Net loan charge-offs recognized during third quarter 2025 were $11 thousand, compared to third quarter 2024 net loan charge-offs of $4 million.
Average deposit balances increased on a quarter over prior year quarter comparison by $52 million, or 5%. For third quarter 2025, the average cost of deposits amounted to 1.34%, as compared to 1.48% for third quarter 2024. Third quarter 2025 increases in average deposit balances over the prior year quarter included savings accounts of $4 million, money market accounts of $3 million, and time deposits of $28 million. Noninterest-bearing accounts decreased $700 thousand from the prior year's third quarter while interest-bearing demand accounts increased $18 million. The average balance of securities sold under repurchase agreement during the third quarter of 2025 decreased by $2 million, or 9%, compared to the average for the same period in the prior year.
Shareholders' equity totaled $125 million on September 30, 2025, with 2.6 million common shares outstanding. The average equity to assets ratio amounted to 9.96% for the quarter ended September 30, 2025. The Company declared a third quarter dividend of $0.41 per share, producing an annualized yield of 3.3% based on September 30, 2025 closing price of $49.50.
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, 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 2025 2024 2024 2025 2024
EARNINGS 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 9 months 9 months
----------------------- --------- --------- --------- --------- --------- --------- ---------
Net interest income FTE
(a) $ 10,968 $ 10,376 $ 9,712 $ 9,599 $ 9,248 $ 31,056 $ 27,397
Provision for credit
loss expense 501 614 402 2,290 700 1,517 4,741
Noninterest income 1,866 1,777 1,696 1,780 1,809 5,339 5,322
Noninterest expenses 7,133 6,878 6,481 6,211 6,422 20,492 18,378
FTE adjustment(a) 30 31 31 33 34 92 110
Net income 4,151 3,727 3,616 2,319 3,145 11,494 7,693
Basic and Diluted
earnings per share 1.57 1.41 1.37 0.87 1.18 4.35 2.89
PERFORMANCE RATIOS
Return on average
assets (ROA),
annualized 1.31 % 1.23 % 1.22 % 0.76 % 1.05 % 1.26 % 0.88 %
Return on average
common equity $(ROE)$,
annualized 13.19 12.48 12.58 7.99 11.14 12.76 9.30
Net interest margin
FTE(a) 3.67 3.61 3.48 3.33 3.26 3.59 3.30
Efficiency ratio 55.56 56.62 56.81 54.68 58.17 56.31 56.15
Number of full-time
equivalent employees 181 175 173 166 175
MARKET DATA
Book value per common
share $ 47.56 $ 46.11 $ 44.80 $ 43.33 $ 43.25
Period-end common share
market value 49.50 43.50 44.00 38.30 38.50
Market as a % of book 104.09 % 94.34 % 98.20 % 88.39 % 89.02 %
Price-to-earnings ratio 9.48 9.01 10.92 10.19 9.02
Average basic common
shares outstanding 2,636,028 2,639,244 2,644,543 2,654,073 2,661,474 2,639,907 2,663,737
Average diluted common
shares outstanding 2,636,028 2,639,244 2,644,543 2,654,073 2,661,474 2,639,907 2,663,737
Period end common
shares outstanding 2,632,498 2,638,921 2,641,547 2,650,089 2,659,324
Common stock market
capitalization $ 130,309 $ 114,793 $ 116,228 $ 101,498 $ 102,384
ASSET QUALITY
Gross charge-offs $ 39 $ 368 $ 35 $ 1,937 $ 4,095 $ 442 $ 4,457
Net charge-offs 11 362 29 1,928 4,008 402 4,328
Allowance for credit
losses 8,720 8,251 7,974 7,595 7,224
Nonperforming assets
(NPAs) 746 1,358 1,597 1,719 3,371
Net charge-off /
average loans ratio 0.01 % 0.19 % 0.02 % 1.05 % 2.20 % 0.07 % 0.81 %
Allowance for credit
losses / period-end
loans 1.08 1.05 1.05 1.03 1.00
NPAs/loans and other
real estate 0.09 0.17 0.21 0.23 0.47
Allowance for credit
losses / nonperforming
loans 1,169 608 499 445 214
CAPITAL & LIQUIDITY
Period-end tangible
equity to assets(b) 9.69 % 9.48 % 9.36 % 9.28 % 9.16 %
Average equity to
assets 9.96 9.82 9.73 9.52 9.43
Average equity to loans 15.55 15.36 15.42 15.80 15.54
Average loans to
deposits 72.97 72.86 72.09 68.50 68.99
AVERAGE BALANCES
Assets $1,253,262 $ 1,220,306 $ 1,197,828 $ 1,211,960 $ 1,191,037 $ 1,223,846 $ 1,171,156
Earning assets 1,184,077 1,153,677 1,131,483 1,145,031 1,127,405 1,156,606 1,107,678
Loans 802,858 779,664 755,860 730,413 723,129 779,634 715,205
Deposits 1,100,283 1,070,136 1,048,534 1,066,229 1,048,214 1,073,175 1,025,260
Shareholders' equity 124,818 119,779 116,554 115,430 112,352 120,414 110,476
ENDING BALANCES
Assets $1,248,357 $ 1,237,969 $ 1,218,640 $ 1,191,500 $ 1,209,181
Earning assets 1,178,781 1,163,268 1,148,625 1,121,675 1,134,786
Loans 810,048 788,070 761,240 737,641 719,602
Deposits 1,096,596 1,089,344 1,070,777 1,044,887 1,070,531
Shareholders' equity 125,190 121,683 118,335 114,835 115,008
----------------------- --------- --------- --------- --------- --------- --------- ---------
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) 2025 2024
------------- -------------
ASSETS
Cash and cash equivalents
Cash and due from banks $ 20,069 $ 26,108
Interest-bearing deposits
with banks 60,738 69,535
------------- -------------
Total cash and cash
equivalents 80,807 95,643
Securities
Available-for-sale, at
fair-value 115,795 131,718
Held-to-maturity 190,027 211,655
Equity securities 269 247
Restricted stock, at cost 1,520 1,520
------------- -------------
Total securities 307,611 345,140
Loans held for sale 384 509
Loans 810,048 719,602
Less allowance for credit
losses 8,720 7,224
------------- -------------
Net loans 801,328 712,378
Premises and equipment, net 13,716 13,994
Goodwill 4,728 4,728
Bank owned life insurance 30,899 27,996
Accrued interest receivable
and other assets 8,884 8,793
------------- -------------
TOTAL ASSETS $ 1,248,357 $ 1,209,181
============= =============
LIABILITIES AND SHAREHOLDERS'
EQUITY
LIABILITIES
Deposits:
Noninterest-bearing $ 277,838 $ 286,525
Interest-bearing 818,758 784,006
------------- -------------
Total deposits 1,096,596 1,070,531
Short-term borrowings 20,304 19,224
Other borrowings 941 1,296
Accrued interest payable and
other liabilities 5,326 3,122
------------- -------------
TOTAL LIABILITIES 1,123,167 1,094,173
------------- -------------
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 111,380 101,847
Treasury stock at cost -
348,104 shares in 2025
and 321,278 shares in 2024 (9,020) (7,929)
Accumulated other
comprehensive loss (5,614) (7,354)
------------- -------------
TOTAL SHAREHOLDERS'
EQUITY 125,190 115,008
------------- -------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,248,357 $ 1,209,181
============= =============
CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Nine Months
Ended Ended
(Unaudited) September 30, September 30,
---------------- ---------------
(Dollars in thousands,
except per share data) 2025 2024 2025 2024
------- ------- ------- -------
Interest and dividend
income:
Loans, including
fees $12,117 $10,531 $34,489 $30,959
Taxable securities 1,695 1,782 5,168 5,489
Nontaxable
securities 73 88 223 264
Other 829 789 2,043 1,537
------ ------ ------ ------
Total interest
and dividend
income 14,714 13,190 41,923 38,249
------ ------ ------ ------
Interest expense:
Deposits 3,715 3,898 10,757 10,687
Other 61 78 202 275
------ ------ ------ ------
Total interest
expense 3,776 3,976 10,959 10,962
------ ------ ------ ------
Net interest income 10,938 9,214 30,964 27,287
Provision for credit
loss expense 501 700 1,517 4,741
------ ------ ------ ------
Net interest
income, after
provision
for credit loss
expense 10,437 8,514 29,447 22,546
------ ------ ------ ------
Noninterest income
Service charges on
deposit accounts 310 301 902 872
Trust services 294 274 840 951
Debit card
interchange fees 563 535 1,628 1,570
Credit card fees 182 162 483 484
Earnings on bank
owned life
insurance 229 203 674 585
Gain on sale of
loans 65 106 195 215
Unrealized (loss)
gain on equity
securities (4) 17 2 (12)
Other 227 211 615 657
------ ------ ------ ------
Total
noninterest
income 1,866 1,809 5,339 5,322
------ ------ ------ ------
Noninterest expenses
Salaries and
employee benefits 4,109 3,656 11,727 10,181
Occupancy expense 323 295 1,031 872
Equipment expense 200 224 629 649
Professional and
director fees 502 391 1,307 1,160
Software expense 498 421 1,342 1,263
Marketing and public
relations 155 162 414 432
Debit card expense 208 186 617 568
Financial
institutions tax 226 216 689 648
FDIC insurance
expense 135 132 420 396
Other expenses 777 739 2,316 2,209
------ ------ ------ ------
Total
noninterest
expenses 7,133 6,422 20,492 18,378
------ ------ ------ ------
Income before income
taxes 5,170 3,901 14,294 9,490
Federal income tax
provision 1,019 756 2,800 1,797
------ ------ ------ ------
Net income $ 4,151 $ 3,145 $11,494 $ 7,693
====== ====== ====== ======
Net income per
share:
Basic and diluted $ 1.57 $ 1.18 $ 4.35 $ 2.89
====== ====== ====== ======
CSB BANCORP, INC.
NON-GAAP DISCLOSURES
NET INTEREST INCOME, FULLY-TAXABLE EQUIVALENT
Quarters ended Nine months ended
(Unaudited) September 30, September 30,
------------------ -------------------
(Dollars in thousands) 2025 2024 2025 2024
------- ------ ------- -------
Net interest income $10,938 $9,214 $30,964 27,287
Taxable equivalent
adjustment(1) 30 34 92 110
------ ----- ------ ------
Net interest income,
FTE $10,968 $9,248 $31,056 $27,397
====== ===== ====== ======
Net interest margin 3.66 % 3.25 % 3.58 % 3.29 %
Taxable equivalent
adjustment(1) 0.01 0.01 0.01 0.01
------ ----- ------ ------
Net interest margin,
FTE 3.67 % 3.26 % 3.59 % 3.30 %
====== ===== ====== ======
(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
Nine months
Quarters ended ended
(Unaudited) September 30, September 30,
--------------- ---------------
(Dollars in thousands) 2025 2024 2025 2024
------- ------- ------- -------
Pre-Provision Net
Revenue (PPNR)
Net interest income $10,938 $ 9,214 $30,964 $27,287
Total noninterest
income 1,866 1,809 5,339 5,322
------ ------ ------ ------
Total revenue 12,804 11,023 36,303 32,609
Less: Noninterest
expense 7,133 6,422 20,492 18,378
------ ------ ------ ------
PPNR (Non-GAAP) $ 5,671 $ 4,601 $15,811 $14,231
====== ====== ====== ======
TANGIBLE EQUITY
(Unaudited) September 30, September 30,
(Dollars in thousands) 2025 2024
------------- -------------
Total Shareholders' Equity
(GAAP) $ 125,190 $ 115,008
Less: Goodwill 4,728 4,728
------------- -------------
Tangible Shareholders' Equity
(Non-GAAP) $ 120,462 $ 110,280
============= =============
View source version on businesswire.com: https://www.businesswire.com/news/home/20251021642446/en/
CONTACT: Paula J. Meiler, SVP & CFO
330.763.2873
paula.meiler@csb1.com
(END) Dow Jones Newswires
October 21, 2025 17:36 ET (21:36 GMT)