MILLERSBURG, Ohio--(BUSINESS WIRE)--July 21, 2026--
CSB Bancorp, Inc. (OTC ID: CSBB):
Second Quarter Highlights
Quarter Ended Quarter Ended
June 30, 2026 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
Six months
Quarters ended 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
adjustment(1) 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
adjustment(1) 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
Six months
Quarters ended 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/
CONTACT: Paula J. Meiler, SVP & CFO
330.763.2873
paula.meiler@csb1.com
(END) Dow Jones Newswires
July 21, 2026 17:20 ET