CSB Bancorp, Inc. Reports First Quarter Earnings

Rhea-AI Summary

CSB Bancorp (OTC Pink: CSBB) reported strong Q1 2025 financial results with net income of $3.616 million, or $1.37 per diluted share, up from $2.933 million ($1.10 per share) in Q1 2024. The company achieved improved performance metrics with ROE of 12.58% and ROA of 1.22%, compared to 10.84% and 1.02% respectively in Q1 2024.

Key highlights include a 6% increase in net interest income, though noninterest income decreased 4%. Average loan balances grew 7%, while the allowance for expected credit losses stood at $8.0 million (1.05% of total loans). The bank's efficiency ratio slightly increased to 56.8% from 56.0% year-over-year.

Book value per share increased 9% to $44.80, and the company declared a quarterly dividend of $0.40 per share. Average deposit balances rose by $38 million (4%) compared to Q1 2024, with the average cost of deposits at 1.36%.

Positive

• Net income increased 23.3% to $3.616 million in Q1 2025
• EPS grew 24.5% to $1.37 per share
• Net interest income rose 6%
• Average loan balances increased 7%
• Book value per share grew 9% year-over-year
• ROE improved to 12.58% from 10.84%
• Average deposit balances increased 4%

Negative

• Noninterest income decreased 4%
• Efficiency ratio worsened to 56.8% from 56.0%
• Nonperforming loans increased to 0.21% from 0.05% year-over-year
• Delinquent loan balances increased to 0.43% from 0.30%
• Cost of deposits increased to 1.36% from 1.31%

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

First Quarter Highlights

		Quarter Ended March 31, 2025					Quarter Ended March 31, 2024
Diluted earnings per share		$	1.37				$	1.10
Net Income		$	3,616,000				$	2,933,000
Return on average common equity			12.58	%				10.84	%
Return on average assets			1.22	%				1.02	%

CSB Bancorp, Inc. (OTC Pink: CSBB) today announced first quarter 2025 net income of $3,616,000 or $1.37 per basic and diluted share, as compared to $2,933,000, or $1.10 per basic and diluted share, for the same period in 2024.

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 12.58% and 1.22%, respectively, compared with 10.84% and 1.02% for the first quarter of 2024. Pre-Provision Net Revenue (“PPNR”) (a non-GAAP measure) totaled $4.9 million during the quarter, an increase of $118 thousand, or 2%, from the prior year’s first quarter. Net interest income increased $533 thousand, or 6%, noninterest income decreased $76 thousand, or 4%, and noninterest expense increased $339 thousand, or 6%, in the first quarter of 2025 compared to the same period in 2024.

Eddie Steiner, President and CEO stated, “Trade and immigration policy announcements, along with unsettled federal tax and budget matters, have fueled increasing concern about a slowing economy and rising prices. Some businesses and households have deferred discretionary borrowing, although construction and acquisition financing activity has remained fairly steady. Net loan balances increased 3% during the quarter. Book value per common share increased to $44.80, up 9% from a year ago, with market price at 10.9 times earnings of the most recent twelve-month period.”

Credit loss provision expense for the quarter decreased $750 thousand from first quarter 2024 as nonperforming loans continue to decrease since the second quarter of 2024. The court liquidation of one commercial credit of approximately $1 million 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 court receiver continues to move through the court system and has scheduled the auction of the remaining real estate.

The allowance for expected credit losses (“ACL”) amounted to $8.0 million, or 1.05% of total loans, on March 31, 2025, as compared to $7.1 million or 1.00% of total loans on March 31, 2024. The allowance for credit losses on off-balance sheet commitments on March 31, 2025 was $519 thousand, as compared to a March 31, 2024 balance of $1.3 million. The decrease in the ACL on off-balance sheet commitments is related to an $885 thousand allowance for letters of credit on March 31, 2024, that were drawn and converted to loans during second quarter 2024. CSB recorded no allowance for credit losses related to available-for-sale or held-to-maturity debt securities, with no meaningful loss expectation on these securities.

Loan interest income including fees increased $666 thousand, or 7%, during first quarter 2025 as compared to the same quarter in 2024. The increase was primarily the result of a $51 million volume increase, augmented by a 1 basis point (“bp”) increase in quarter over prior year’s quarter yield. Securities interest income decreased $108 thousand, or 5%, during the first quarter 2025 compared to the same quarter 2024 as the Company continues to deploy cash flow from investments into loan originations. Loan yields for first quarter 2025 averaged 5.84%, an increase of 1 bp from the 2024 first quarter average of 5.83%, while overnight funds and securities yields for first quarter 2025 averaged 4.47% and 2.34%, respectively, compared to 5.36% and 2.21% in the first quarter 2024.

Interest expense rose $192 thousand, or 6%, during first quarter 2025 as compared to first quarter 2024. The increase follows a period of rapid interest rate increases spurred by the Federal Reserve during March 2022 through May 2023, followed by competitive pressures from banks and others to secure adequate funding. The cost to fund gross earning assets for the first quarter 2025 was 1.29% as compared to 1.25% for the first quarter of 2024.

The fully taxable equivalent (“FTE”) net interest margin (a non-GAAP measure) was 3.48% compared to 3.37% for the first quarter 2024. Compared to the 2024 first quarter, FTE net interest income increased $522 thousand, or 6%, reflecting increasing interest income with a $34 million increase in average earning assets as well as a 16 bp increase in the yield on assets. The higher interest rate environment coupled with the continued mix shift into loans from securities primarily drove the increase in earnings from assets, which was partially offset by higher average interest-bearing liabilities and a 3 bp higher cost of funds. Tax equivalency effect on net interest margin was 0.01% in first quarter 2025 and 0.02% in first quarter 2024.

Noninterest income decreased $76 thousand, or 4%, compared to first quarter of 2024. The decrease was primarily the result of a $116 thousand decrease in trust service fees representing a one-time fee in 2024 that did not recur in 2025. Offsetting increases were recognized as follows: $28 thousand increase in earnings on bank owned life insurance, $15 thousand increase in service fees on deposits, $8 thousand increase in debit card interchange fees, and a $13 thousand increase in gain on sale of mortgage loans to the secondary market.

Noninterest expense increased $339 thousand, or 6%, from first quarter 2024. Salary and employee benefits increased $228 thousand, or 7%, compared to the prior year quarter, with increases in base salaries, medical, and retirement benefits. Professional fees increased $81 thousand, or 24%, with increases for IT support. Occupancy expense increased $73 thousand, or 26%, primarily due to snow removal and heating system repairs due to the cold winter. Debit card expense increased $22 thousand, or 12% with increased charge-backs and the Financial Institutions Tax increased $14 thousand, or 6%, with higher capital levels. Marketing and public relations costs decreased $23 thousand, or 18%, and software expense decreased $25 thousand, or 6%. The Company’s first quarter efficiency ratio increased slightly to 56.8% compared to 56.0% in the prior year.

Federal income tax expense was $878 thousand in the 2025 first quarter compared to $693 thousand in the 2024 first quarter. The effective tax rate for the 2025 and 2024 first quarters was 20% and 19%, respectively.

Average earning assets for the 2025 first quarter increased $34 million, or 3%, from the year-ago quarter, primarily reflecting a $51 million, or 7%, increase in average loans, a $38 million, or 10%, decrease in average securities, and a $21 million, or 75%, 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 $37 million, or 8%, 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 $2 million from the prior year’s quarter as borrowers covered expenses and avoided refinancing their lower interest rate mortgages. Average consumer credit balances decreased $1.6 million, or 10%, versus the same quarter of the prior year. Commercial loan demand has leveled out, with households and businesses alike preferring to limit borrowing until fiscal policies effects of tariffs and tax rates signal more certainty about the strength of the economy.

Nonperforming loans were $1.6 million, or 0.21%, of total loans on March 31, 2025, compared to $361 thousand, or 0.05% of total loans, a year ago. Delinquent loan balances as of March 31, 2025, increased to 0.43% of total loans as compared to 0.30% on March 31, 2024. Net loan charge-offs recognized during first quarter 2025 were $29 thousand, compared to first quarter 2024 net loan charge-offs of $74 thousand.

Average deposit balances increased on a quarter over prior year quarter comparison by $38 million, or 4%. For first quarter 2025, the average cost of deposits amounted to 1.36%, as compared to 1.31% for first quarter 2024. First quarter 2025 increases in average deposit balances over the prior year quarter included savings accounts of $1 million, money market accounts of $14 million, and time deposits of $48 million. Noninterest-bearing accounts decreased $4 million from the prior year’s first quarter while interest-bearing demand accounts declined $21 million. The average balance of securities sold under repurchase agreement during the first quarter of 2025 decreased by $7 million, or 21%, compared to the average for the same period in the prior year.

Shareholders’ equity totaled $118 million on March 31, 2025, with 2.6 million common shares outstanding. The average equity to assets ratio amounted to 9.73% for the quarter ended March 31, 2025. The Company declared a first quarter dividend of $0.40 per share, producing an annualized yield of 3.6% based on March 31, 2025 closing price of $44.00.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $1.2 billion as of March 31, 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				2024				2024				2024				2024
EARNINGS		1st Qtr				4th Qtr				3rd Qtr				2nd Qtr				1st Qtr
Net interest income FTE (a)	$		9,712		$		9,599		$		9,248		$		8,959		$		9,190
Provision for credit loss expense			402				2,290				700				2,889				1,152
Noninterest income			1,696				1,780				1,809				1,741				1,772
Noninterest expenses			6,481				6,211				6,422				5,814				6,142
FTE adjustment(a)			31				33				34				34				42
Net income			3,616				2,319				3,145				1,615				2,933
Basic and Diluted earnings per share			1.37				0.87				1.18				0.61				1.10
PERFORMANCE RATIOS
Return on average assets (ROA), annualized			1.22	%			0.76	%			1.05	%			0.56	%			1.02	%
Return on average common equity (ROE), annualized			12.58				7.99				11.14				5.89				10.84
Net interest margin FTE(a)			3.48				3.33				3.26				3.28				3.37
Efficiency ratio			56.81				54.68				58.17				54.22				56.00
Number of full-time equivalent employees			173				166				175				173				172
MARKET DATA
Book value per common share	$		44.80		$		43.33		$		43.25		$		41.43		$		41.11
Period-end common share market value			44.00				38.30				38.50				39.00				40.00
Market as a % of book			98.20	%			88.39	%			89.02	%			94.14	%			97.30	%
Price-to-earnings ratio			10.92				10.19				9.02				8.88				7.78
Average basic common shares outstanding			2,644,543				2,654,073				2,661,474				2,664,485				2,665,277
Average diluted common shares outstanding			2,644,543				2,654,073				2,661,474				2,664,485				2,665,277
Period end common shares outstanding			2,641,547				2,650,089				2,659,324				2,663,924				2,664,683
Common stock market capitalization	$		116,228		$		101,498		$		102,384		$		103,893		$		106,587
ASSET QUALITY
Gross charge-offs	$		35		$		1,937		$		4,095		$		274		$		88
Net charge-offs			29				1,928				4,008				246				74
Allowance for credit losses			7,974				7,595				7,224				10,587				7,136
Nonperforming assets (NPAs)			1,597				1,719				3,371				6,683				361
Net charge-off / average loans ratio			0.02	%			1.05	%			2.20	%			0.14	%			0.04	%
Allowance for credit losses / period-end loans			1.05				1.03				1.00				1.47				1.00
NPAs/loans and other real estate			0.21				0.23				0.47				0.93				0.05
Allowance for credit losses / nonperforming loans			499				445				214				158				1,979
CAPITAL & LIQUIDITY
Period-end tangible equity to assets(b)			9.36	%			9.28	%			9.16	%			9.09	%			9.10	%
Average equity to assets			9.73				9.52				9.43				9.49				9.38
Average equity to loans			15.42				15.80				15.54				15.37				15.43
Average loans to deposits			72.09				68.50				68.99				70.54				69.78
AVERAGE BALANCES
Assets	$		1,197,803		$		1,211,960		$		1,191,037		$		1,161,533		$		1,160,661
Earning assets			1,131,483				1,145,031				1,127,405				1,097,706				1,097,704
Loans			755,863				730,413				723,129				717,105				705,294
Deposits			1,048,534				1,066,229				1,048,214				1,016,569				1,010,745
Shareholders' equity			116,554				115,430				112,352				110,219				108,837
ENDING BALANCES
Assets	$		1,218,640		$		1,191,500		$		1,209,181		$		1,167,315		$		1,156,245
Earning assets			1,148,625				1,121,675				1,134,786				1,104,404				1,097,703
Loans			761,240				737,641				719,602				721,916				710,822
Deposits			1,070,777				1,044,887				1,070,531				1,023,835				1,010,115
Shareholders' equity			118,335				114,835				115,008				110,368				109,555

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)		March 31,					March 31,
(Dollars in thousands, except per share data)		2025					2024
ASSETS
Cash and cash equivalents
Cash and due from banks	$		22,315			$		11,447
Interest-bearing deposits with banks			66,171					27,972
Total cash and cash equivalents			88,486					39,419
Securities
Available-for-sale, at fair-value			119,428					134,926
Held-to-maturity			200,000					222,095
Equity securities			266					253
Restricted stock, at cost			1,520					1,530
Total securities			321,214					358,804
Loans held for sale			-					105
Loans			761,240					710,822
Less allowance for credit losses			7,974					7,136
Net loans			753,266					703,686
Premises and equipment, net			13,935					12,936
Goodwill			4,728					4,728
Bank owned life insurance			28,441					25,599
Accrued interest receivable and other assets			8,570					10,968
TOTAL ASSETS	$		1,218,640			$		1,156,245
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$		283,255			$		277,898
Interest-bearing			787,522					732,217
Total deposits			1,070,777					1,010,115
Short-term borrowings			24,981					29,484
Other borrowings			1,236					1,700
Accrued interest payable and other liabilities			3,311					5,391
TOTAL LIABILITIES			1,100,305					1,046,690
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			105,664					99,191
Treasury stock at cost - 339,055 shares in 2025
and 315,919 shares in 2024			(8,622	)				(7,729	)
Accumulated other comprehensive loss			(7,151	)				(10,351	)
TOTAL SHAREHOLDERS' EQUITY			118,335					109,555
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$		1,218,640			$		1,156,245

CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
		Quarters ended
(Unaudited)		March 31,
(Dollars in thousands, except per share data)		2025					2024
Interest and dividend income:
Loans, including fees	$		10,875			$		10,209
Taxable securities			1,795					1,890
Nontaxable securities			75					88
Other			536					369
Total interest and dividend income			13,281					12,556
Interest expense:
Deposits			3,527					3,300
Other			73					108
Total interest expense			3,600					3,408
Net interest income			9,681					9,148
Provision for credit loss expense			402					1,152
Net interest income, after provision
for credit loss expense			9,279					7,996
Noninterest income
Service charges on deposit accounts			295					280
Trust services			278					394
Debit card interchange fees			515					507
Credit card fees			150					157
Earnings on bank owned life insurance			216					188
Gain on sale of loans			49					36
Unrealized loss on equity securities			-					(6	)
Other			193					216
Total noninterest income			1,696					1,772
Noninterest expenses
Salaries and employee benefits			3,697					3,469
Occupancy expense			356					283
Equipment expense			206					224
Professional and director fees			413					332
Software expense			403					428
Marketing and public relations			105					128
Debit card expense			211					189
Financial institutions tax			230					216
FDIC insurance expense			150					135
Other expenses			710					738
Total noninterest expenses			6,481					6,142
Income before income taxes			4,494					3,626
Federal income tax provision			878					693
Net income	$		3,616			$		2,933
Net income per share:
Basic and diluted	$		1.37			$		1.10

CSB BANCORP, INC.
NON-GAAP DISCLOSURES
NET INTEREST INCOME, FULLY-TAXABLE EQUIVALENT
		Quarters ended
(Unaudited)		March 31,
(Dollars in thousands)		2025						2024
Net interest income	$		9,681				$		9,148
Taxable equivalent adjustment1			31						42
Net interest income, FTE	$		9,712				$		9,190
Net interest margin			3.47		%				3.35		%
Taxable equivalent adjustment1			0.01						0.02
Net interest margin, FTE			3.48		%				3.37		%
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
(Unaudited)		March 31,
(Dollars in thousands)		2025					2024
Pre-Provision Net Revenue (PPNR)
Net interest income	$		9,681			$		9,148
Total noninterest income			1,696					1,772
Total revenue			11,377					10,920
Less: Noninterest expense			6,481					6,142
PPNR (Non-GAAP)	$		4,896			$		4,778

TANGIBLE EQUITY
(Unaudited)		March 31,					March 31,
(Dollars in thousands)		2025					2024
Total Shareholders' Equity (GAAP)	$		118,335			$		109,555
Less: Goodwill			4,728					4,728
Tangible Shareholders' Equity (Non-GAAP)	$		113,607			$		104,827

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250416983015/en/

Paula J. Meiler, SVP & CFO

330.763.2873

paula.meiler@csb1.com

Source: CSB Bancorp, Inc.

FAQ

What was CSB Bancorp's (CSBB) earnings per share in Q1 2025?

CSB Bancorp reported earnings of $1.37 per diluted share in Q1 2025, up from $1.10 in Q1 2024.

How much did CSBB's net interest income grow in Q1 2025?

Net interest income increased by $533 thousand, or 6%, compared to Q1 2024.

What is CSBB's current dividend yield based on March 31, 2025 price?

Based on the closing price of $44.00 on March 31, 2025, the quarterly dividend of $0.40 produces an annualized yield of 3.6%.

How much did CSBB's loan portfolio grow in Q1 2025?

Average loan balances increased by $51 million, or 7%, compared to Q1 2024.

What is CSBB's current book value per share?

Book value per common share increased to $44.80, up 9% from a year ago.