MILLERSBURG, Ohio--(BUSINESS WIRE)--January 28, 2026--
CSB Bancorp, Inc. (OTC ID: CSBB):
Fourth Quarter Highlights
Quarter Ended Quarter Ended
December 31, 2025 December 31, 2024
-------------------- --------------------
Diluted earnings per
share $ 0.71 $ 0.87
Net Income $ 1,869,000 $ 2,319,000
Return on average
common equity 5.83% 7.99%
Return on average
assets 0.58% 0.76%
CSB Bancorp, Inc. (OTC ID: CSBB) today announced fourth quarter 2025 net income of $1,869,000 or $0.71 per basic and diluted share, as compared to $2,319,000, or $0.87 per basic and diluted share, for the same period in 2024. For the twelve-month period ended December 31, 2025, net income totaled $13,363,000 compared to $10,012,000 for the same period last year, an increase of 33%.
Annualized returns on average common equity ("ROE") and average assets ("ROA") for the quarter were 5.83% and 0.58%, respectively, compared with 7.99% and 0.76% for the fourth quarter of 2024. Pre-Provision Net Revenue ("PPNR") (a non-GAAP measure) totaled $6.1 million during the quarter, an increase of $1.0 million, or 19%, from the prior year's fourth quarter. Net interest income increased $1.9 million, or 19%, noninterest income increased $176 thousand, or 10%, and noninterest expense increased $1.0 million, or 17%, in the fourth quarter of 2025 compared to the same period in 2024. For the twelve-month period ended December 31, 2025 ROE and ROA were 10.94% and 1.08% as compared to 8.96% and 0.85% for the comparable period in 2024.
Eddie Steiner, President and CEO stated, "Loans grew at a slower pace during fourth quarter, partially due to seasonal business slowdowns, as well as mortgage applications stalling during the holiday season. For the year, net loan balances increased $87 million, or 12%. That growth is net of a $5 million increase in the allowance for credit losses due to the recognition of a fourth quarter valuation allowance of $4 million for one large commercial credit that remains a performing asset. Pre-provision net revenue increased 13% in 2025 to $22 million. Full year net income increased 33% from the prior year. After tax earnings amounted to $5.07 per share, and shareholders' equity rose 10% to $126 million at year end."
Provision for credit loss expense for the quarter increased $1.6 million from fourth quarter 2024. The current year increase results from the $4 million valuation allowance mentioned above on an individually evaluated loan relationship which is collateral dependent through its continued operation. The fourth quarter of 2024 provision for credit loss of $2.3 million covered a net charge-off of $1.9 million for that prior year quarter.
The allowance for expected credit losses ("ACL") amounted to $12.5 million, or 1.50% of total loans, on December 31, 2025, as compared to $7.6 million or 1.03% of total loans on December 31, 2024. The allowance for credit losses on off-balance sheet commitments on December 31, 2025 was $596 thousand, as compared to a December 31, 2024 balance of $524 thousand. The increase in the ACL is primarily related to the individually evaluated loan relationship. 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 $1.7 million, or 16%, during fourth quarter 2025 as compared to the same quarter in 2024. The increase was primarily the result of an $88 million average volume increase, augmented by a 20 basis point ("bp") increase in yield over the prior year's quarter. Securities interest income increased $13 thousand, or less than 1%, during the fourth quarter 2025 compared to the same quarter 2024 as the Company continues to deploy cash flow from investments into loan originations. Loan yields for fourth quarter 2025 averaged 5.97%, an increase of 20 bps from the 2024 fourth quarter average of 5.77%, while overnight funds and securities yields for fourth quarter 2025 averaged 3.98% and 2.48%, respectively, compared to 4.81% and 2.23% in the fourth quarter 2024.
Interest expense declined $92 thousand, or 2%, during fourth quarter 2025 as compared to fourth quarter 2024. The cost to fund gross earning assets for the fourth quarter of 2025 declined to 1.20% as compared to 1.32% for the fourth quarter of 2024.
The fully taxable equivalent ("FTE") net interest margin (a non-GAAP measure) was 3.73% compared to 3.33% for the fourth quarter 2024. Compared to the fourth quarter of 2024, FTE net interest income increased $1.9 million, or 19%, with a $71 million increase in average earning assets as well as a 29 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 17 basis points as short-term interest rates dropped. Tax equivalency effect on net interest margin was 0.01% for both 2025 and 2024.
Noninterest income increased $176 thousand, or 10%, compared to fourth quarter of 2024. The increase was primarily the result of a $40 thousand increase in earnings on bank owned life insurance, a $38 thousand increase in trust fees, a $34 thousand increase in debit card interchange fees, and a $28 thousand increase in credit card fees. An offsetting decrease of $10 thousand was recognized in unrealized gain on equity securities.
Noninterest expense increased $1.0 million, or 17%, from fourth quarter 2024. Salary and employee benefits increased $690 thousand, or 20%, compared to the prior year quarter, with increases in base salaries, medical, and retirement benefits, partially due to increased headcount as the company was able to reduce vacancies and add several new positions supporting growth. Professional fees increased $81 thousand, or 20%, with increases to legal expense and workflow improvement. Marketing and public relations increased $54 thousand, or 42%, following a third quarter decrease. Software expense increased $25 thousand, or 6%, primarily due to new loan production software. Occupancy expense increased $35 thousand, or 12%, primarily due to facilities maintenance. The Company's fourth quarter efficiency ratio decreased to 54.1% compared to 54.7% in the prior year.
Federal income tax expense was $400 thousand in fourth quarter 2025 compared to $526 thousand in the fourth quarter of 2024. The effective tax rate for the 2025 and 2024 fourth quarters was 18%, respectively.
Average earning assets for the fourth quarter of 2025 increased $71 million, or 6% from the year-ago quarter, primarily reflecting an $88 million, or 12%, increase in average loans, a $34 million, or 10%, decrease in average securities, and a $17 million, or 24%, 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 $67 million, or 14%, 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 $16 million, or 9%, 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 $7 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 11%, 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 $652 thousand, or 0.08%, of total loans on December 31, 2025, compared to $1.7 million, or 0.23% of total loans, a year ago. Delinquent loan balances as of December 31, 2025, decreased to 0.23% of total loans as compared to 0.40% on December 31, 2024. Net loan charge-offs recognized during fourth quarter 2025 were $26 thousand, compared to fourth quarter 2024 net loan charge-offs of $1.9 million.
Average deposit balances increased on a quarter over prior year quarter comparison by $61 million, or 6%. For fourth quarter 2025, the average cost of deposits amounted to 1.28%, as compared to 1.38% for fourth quarter 2024. Fourth quarter 2025 increases in average deposit balances over the prior year quarter included savings accounts of $6 million, money market accounts of $10 million, and time deposits of $23 million. Noninterest-bearing accounts increased $6 million from the prior year's fourth quarter while interest-bearing demand accounts increased $16 million. The average balance of securities sold under repurchase agreement during the fourth quarter of 2025 increased by $783 thousand, or 3%, compared to the average for the same period in the prior year.
Shareholders' equity totaled $126 million on December 31, 2025, with 2.6 million common shares outstanding. The average equity to assets ratio amounted to 9.90% for the quarter ended December 31, 2025. The Company declared a fourth quarter dividend of $0.42 per share, producing an annualized yield of 3.1% based on December 31, 2025 closing price of $54.00.
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 2025 2024 2025 2024
EARNINGS 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 12 months 12 months
----------------------- --------- --------- --------- --------- --------- --------- ---------
Net interest income FTE
(a) $ 11,450 $ 10,968 $ 10,376 $ 9,712 $ 9,599 $ 42,506 $ 36,996
Provision for credit
loss expense 3,858 501 614 402 2,290 5,375 7,031
Noninterest income 1,956 1,866 1,777 1,696 1,780 7,295 7,102
Noninterest expenses 7,249 7,133 6,878 6,481 6,211 27,741 24,589
FTE adjustment(a) 30 30 31 31 33 122 143
Net income 1,869 4,151 3,727 3,616 2,319 13,363 10,012
Basic and Diluted
earnings per share 0.71 1.57 1.41 1.37 0.87 5.07 3.76
PERFORMANCE RATIOS
Return on average
assets (ROA),
annualized 0.58 % 1.31 % 1.23 % 1.22 % 0.76 % 1.08 % 0.85 %
Return on average
common equity $(ROE)$,
annualized 5.83 13.19 12.48 12.58 7.99 10.94 8.96
Net interest margin
FTE(a) 3.73 3.67 3.61 3.48 3.33 3.63 3.31
Efficiency ratio 54.11 55.56 56.62 56.81 54.68 55.72 55.77
Number of full-time
equivalent employees 178 181 175 173 166
MARKET DATA
Book value per common
share $ 48.07 $ 47.56 $ 46.11 $ 44.80 $ 43.33
Period-end common share
market value 54.00 49.50 43.50 44.00 38.30
Market as a % of book 112.34 % 104.09 % 94.34 % 98.20 % 88.39 %
Price-to-earnings ratio 10.65 9.48 9.01 10.92 10.19
Average basic common
shares outstanding 2,629,229 2,636,028 2,639,244 2,644,543 2,654,073 2,637,216 2,661,308
Average diluted common
shares outstanding 2,629,229 2,636,028 2,639,244 2,644,543 2,654,073 2,637,216 2,661,308
Period end common
shares outstanding 2,627,015 2,632,498 2,638,921 2,641,547 2,650,089
Common stock market
capitalization $ 141,859 $ 130,309 $ 114,793 $ 116,228 $ 101,498
ASSET QUALITY
Gross charge-offs $ 31 $ 39 $ 368 $ 35 $ 1,937 $ 473 $ 6,394
Net charge-offs 26 11 362 29 1,928 428 6,256
Allowance for credit
losses 12,470 8,720 8,251 7,974 7,595
Nonperforming assets
(NPAs) 652 746 1,358 1,597 1,719
Net charge-off /
average loans ratio 0.01 % 0.01 % 0.19 % 0.02 % 1.05 % 0.05 % 0.87 %
Allowance for credit
losses / period-end
loans 1.50 1.08 1.05 1.05 1.03
NPAs/loans and other
real estate 0.08 0.09 0.17 0.21 0.23
Allowance for credit
losses / nonperforming
loans 1,913 1,169 608 499 445
CAPITAL & LIQUIDITY
Period-end tangible
equity to assets(b) 9.43 % 9.69 % 9.48 % 9.36 % 9.28 %
Average equity to
assets 9.90 9.96 9.82 9.73 9.52
Average equity to loans 15.56 15.55 15.36 15.42 15.80
Average loans to
deposits 72.62 72.97 72.86 72.09 68.50
AVERAGE BALANCES
Assets $1,285,617 $ 1,253,262 $ 1,220,306 $ 1,197,828 $ 1,211,960 $ 1,239,521 $ 1,181,417
Earning assets 1,216,492 1,184,077 1,153,677 1,131,483 1,145,031 1,171,701 1,117,067
Loans 818,312 802,858 779,664 755,860 730,413 789,383 719,028
Deposits 1,126,878 1,100,283 1,070,136 1,048,534 1,066,229 1,086,710 1,035,558
Shareholders' equity 127,296 124,818 119,779 116,554 115,430 122,149 111,722
ENDING BALANCES
Assets $1,292,736 $ 1,248,357 $ 1,237,969 $ 1,218,640 $ 1,191,500
Earning assets 1,228,856 1,178,781 1,163,268 1,148,625 1,121,675
Loans 829,778 810,048 788,070 761,240 737,641
Deposits 1,127,915 1,096,596 1,089,344 1,070,777 1,044,887
Shareholders' equity 126,280 125,190 121,683 118,335 114,835
----------------------- --------- --------- --------- --------- --------- --------- ---------
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) December 31, December 31,
(Dollars in thousands, except
per share data) 2025 2024
------------ ------------
ASSETS
Cash and cash equivalents
Cash and due from banks $ 17,731 $ 21,287
Interest-bearing deposits
with banks 81,579 52,222
------------ ------------
Total cash and cash
equivalents 99,310 73,509
Securities
Available-for-sale, at
fair-value 132,217 125,434
Held-to-maturity 183,145 204,309
Equity securities 279 266
Restricted stock, at cost 1,645 1,520
------------ ------------
Total securities 317,286 331,529
Loans held for sale 213 283
Loans 829,778 737,641
Less allowance for credit
losses 12,470 7,595
------------ ------------
Net loans 817,308 730,046
Premises and equipment, net 13,577 14,069
Goodwill 4,728 4,728
Bank owned life insurance 31,168 28,225
Accrued interest receivable
and other assets 9,146 9,111
------------ ------------
TOTAL ASSETS $ 1,292,736 $ 1,191,500
============ ============
LIABILITIES AND SHAREHOLDERS'
EQUITY
LIABILITIES
Deposits:
Noninterest-bearing $ 288,947 $ 281,358
Interest-bearing 838,968 763,529
------------ ------------
Total deposits 1,127,915 1,044,887
Short-term borrowings 31,517 25,683
Other borrowings 917 1,266
Accrued interest payable and
other liabilities 6,107 4,829
------------ ------------
TOTAL LIABILITIES 1,166,456 1,076,665
------------ ------------
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 112,146 103,105
Treasury stock at cost -
353,587 shares in 2025
and 330,513 shares in 2024 (9,293) (8,294)
Accumulated other
comprehensive loss (5,017) (8,420)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 126,280 114,835
------------ ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,292,736 $ 1,191,500
============ ============
CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months
Ended Years Ended
(Unaudited) December 31, December 31,
--------------- ---------------
(Dollars in thousands,
except per share data) 2025 2024 2025 2024
------ ------ ------ ------
Interest and dividend
income:
Loans, including
fees $12,305 $10,580 $46,794 $41,539
Taxable securities 1,847 1,826 7,015 7,315
Nontaxable
securities 70 78 293 342
Other 892 868 2,935 2,405
------ ------ ------ ------
Total interest
and dividend
income 15,114 13,352 57,037 51,601
------ ------ ------ ------
Interest expense:
Deposits 3,626 3,717 14,383 14,404
Other 68 69 270 344
------ ------ ------ ------
Total interest
expense 3,694 3,786 14,653 14,748
------ ------ ------ ------
Net interest income 11,420 9,566 42,384 36,853
Provision for credit
loss expense 3,858 2,290 5,375 7,031
------ ------ ------ ------
Net interest
income, after
provision
for credit loss
expense 7,562 7,276 37,009 29,822
------ ------ ------ ------
Noninterest income
Service charges on
deposit accounts 310 284 1,212 1,156
Trust services 306 268 1,146 1,219
Debit card
interchange fees 579 545 2,207 2,115
Credit card fees 187 159 670 643
Earnings on bank
owned life
insurance 269 229 943 814
Gain on sale of
loans 90 66 285 281
Unrealized gain on
equity securities 10 20 12 8
Other 205 209 820 866
------ ------ ------ ------
Total
noninterest
income 1,956 1,780 7,295 7,102
------ ------ ------ ------
Noninterest expenses
Salaries and
employee benefits 4,132 3,442 15,859 13,623
Occupancy expense 335 300 1,366 1,172
Equipment expense 218 214 847 863
Professional and
director fees 486 405 1,793 1,565
Software expense 471 446 1,813 1,709
Marketing and public
relations 183 129 597 561
Debit card expense 212 187 829 755
Financial
institutions tax 229 216 918 864
FDIC insurance
expense 139 142 559 538
Other expenses 844 730 3,160 2,939
------ ------ ------ ------
Total
noninterest
expenses 7,249 6,211 27,741 24,589
------ ------ ------ ------
Income before income
taxes 2,269 2,845 16,563 12,335
Federal income tax
provision 400 526 3,200 2,323
------ ------ ------ ------
Net income $ 1,869 $ 2,319 $13,363 $10,012
====== ====== ====== ======
Net income per
share:
Basic and diluted $ 0.71 $ 0.87 $ 5.07 $ 3.76
====== ====== ====== ======
CSB BANCORP, INC.
NON-GAAP DISCLOSURES
NET INTEREST INCOME, FULLY-TAXABLE EQUIVALENT
Quarters ended Years ended
(Unaudited) December 31, December 31,
------------------ -------------------
(Dollars in thousands) 2025 2024 2025 2024
------ ----- ------ ------
Net interest income $11,420 $9,566 $42,384 36,853
Taxable equivalent
adjustment(1) 30 33 122 143
------ ----- ------ ------
Net interest income,
FTE $11,450 $9,599 $42,506 $36,996
====== ===== ====== ======
Net interest margin 3.72 % 3.32 % 3.62 % 3.30 %
Taxable equivalent
adjustment(1) 0.01 0.01 0.01 0.01
------ ----- ------ ------
Net interest margin,
FTE 3.73 % 3.33 % 3.63 % 3.31 %
====== ===== ====== ======
(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 Years ended
(Unaudited) December 31, December 31,
--------------- ---------------
(Dollars in thousands) 2025 2024 2025 2024
------ ------ ------ ------
Pre-Provision Net
Revenue (PPNR)
Net interest income $11,420 $ 9,566 $42,384 $36,853
Total noninterest
income 1,956 1,780 7,295 7,102
------ ------ ------ ------
Total revenue 13,376 11,346 49,679 43,955
Less: Noninterest
expense 7,249 6,211 27,741 24,589
------ ------ ------ ------
PPNR (Non-GAAP) $ 6,127 $ 5,135 $21,938 $19,366
====== ====== ====== ======
TANGIBLE EQUITY
(Unaudited) December 31, December 31,
(Dollars in thousands) 2025 2024
------------ ------------
Total Shareholders' Equity (GAAP) $ 126,280 $ 114,835
Less: Goodwill 4,728 4,728
------------ ------------
Tangible Shareholders' Equity
(Non-GAAP) $ 121,552 $ 110,107
============ ============
View source version on businesswire.com: https://www.businesswire.com/news/home/20260128290190/en/
CONTACT: Contact Information:
Paula J. Meiler, SVP & CFO
330.763.2873
paula.meiler@csb1.com
(END) Dow Jones Newswires
January 28, 2026 17:09 ET (22:09 GMT)