EX-99.2 3 l32536aexv99w2.htm EX-99.2 EX-99.2 \
EXHIBIT 99.2
(GRAPHICS)
FINANCIAL HIGHLIGHTS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
AT OR FOR THE SIX MONTHS ENDED JUNE 30 2008 2007
Assets $347,104 $327,465
Net loans $246,825 $240,059
Securities $ 68,744 $66,863
Deposits $248,177 $250,365
Shareholders’ equity $ 36,577 $35,119
Net income $ 1,880 $1,771
Earnings per share $ 0.77 $ 0.72
Book value per outstanding share $ 15.10 $14.26
KEY RATIOS
AT OR FOR THE SIX MONTHS ENDED JUNE 30 2008 2007
Return on average assets 1.11% 1.10% Return on average equity 10.14% 10.11% Net interest margin (tax equivalent) 4.14% 4.35% Loans to deposits 100.55% 96.85% Allowance for loan loss to total loans 1.09% 1.00% Shareholders’ equity to total assets 10.54% 10.72% Efficiency ratio 63.95% 64.57%
DIRECTORS
Robert K. Baker            Jeffery A. Robb, Sr. Ronald E. Holtman            Eddie L. Steiner J. Thomas Lang            John R. Waltman
Chairman
Daniel J. Miller
EXECUTIVE OFFICERS Eddie L. Steiner President and Chief Executive Officer Rick L. Ginther President, The Commercial & Savings Bank Paul D. Greig Chief Operations/Information Officer Paula J. Meiler Chief Financial Officer
STOCK PERFORMANCE & DIVIDENDS
CASH TRADE PRICE QUARTER            CLOSING            DIVIDEND ENDING            HIGH            LOW            PRICE            DECLARED
9/30/06 20.75 18.70 19.00 0.16
12/31/06 20.25 18.00 19.00 0.16
3/31/07 19.05 17.50 17.57 0.18
6/30/07 18.25 17.42 17.75 0.18
9/30/07 19.00 15.95 17.00 0.18
12/31/07 17.75 15.40 17.75 0.18
3/31/08 17.90 15.75 16.14 0.18
6/30/08 18.00 15.75 15.75 0.18
ADDITIONAL STOCK INFORMATION STOCK LISTING Common: Symbol – CSBB.OB
STOCK TRANSFER Registrar & Transfer Company Attn: Investor Relations 10 Commerce Drive Cranford, NJ 07016 (800) 368-5948
Copies of CSB Bancorp, Inc. S.E.C. Filings may be obtained by writing:
Paula J. Meiler, CFO CSB Bancorp, Inc. 91 North Clay Street Millersburg, OH 44654 (330) 674-9015 or (800) 654-9015
“Remember to call CSB for all your financial needs, whether to borrow, save or invest.”

 


 

(GRAPHICS)
DEAR FELLOW SHAREHOLDER
We are pleased to report that mid-year results for CSB Bancorp, Inc. reflect stability and continued solid perform- ance despite the struggling economy and turbulence in much of the banking and financial services sector.
CSB’s net earnings totaled $878 thousand in the second quarter, or $0.36 per share. For the six months ended June 30, net income of $1.88 million is ahead of the prior year by $109 thousand, or $0.05 per share.
Just as important, the Company has maintained high asset quality within its loan and securities portfolios. Net loan charge-offs were very low during the first half of 2008 (an annual rate of 0.02%), and nonperforming asset levels remain well below historical norms. While we are pleased with these results, we remain vigilant for any signs of deterioration in asset quality or performance.
CSB’s strong capital position provides a solid foundation to weather the difficult economic environment and to consider further opportunities for creating shareholder value.
We continue working toward the acquisition of Indian Village Bancorp and its wholly owned subsidiary Indian Village Community Bank, which we announced on May 14, 2008. Subject to regulatory and Indian Village shareholder approvals and absent unforeseen material adversity, we anticipate an October closing date for merging Indian Village into CSB, with integration of systems and banking operations completed during the fourth quarter.
On a broader scale, we expect the overall economy to be hobbled for some time by sluggish housing and employment activity, high foreclosure rates, deteriorated credit conditions, tightened lending standards, lack of liquidity in financial markets and skittish investor sentiment. While we do not profess to know when the “bottom” will occur, it appears this economic down cycle may not be short-lived and the eventual recovery may be rather slow and difficult.
In the meantime, we are fortunate that CSB’s existing and target markets have not been as severely impacted by the downturn as many areas and our focus remains on providing high quality financial services while generating profit and increasing value for our fellow shareholders.
On behalf of the board of directors, we enclose the second quarter 2008 dividend of $0.18 per share and thank you for being a shareholder of CSB Bancorp, Inc.
Sincerely,
EDDIE L. STEINER            JOHN R. WALTMAN
President and CEO            Chairman
CSB Bancorp, Inc. CSB Bancorp, Inc.
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) JUNE 30 2008 2007
ASSETS:
Cash and due from banks $ 11,531 $ 10,390
Federal funds sold 11,000 0
Securities 68,744 66,863
Net loans 246,825 240,059
Premises & equipment, net 7,077 7,527
Other assets 1,927 2,626
TOTAL ASSETS $347,104 $327,465 LIABILITIES:
Deposits $248,177 $250,365
Securities sold under agreements to repurchase 25,111 22,057
Short-term borrowings 2,000 11,200
Other borrowings 33,768 7,203
Other liabilities 1,471 1,521
TOTAL LIABILITIES $310,527 $292,346 SHAREHOLDERS’ EQUITY:
Common stock $ 16,674 $ 16,674
Additional paid-in capital 6,460 6,439
Retained earnings 18,994 17,132
Treasury stock (5,014) (4,349)
Accumulated other comprehensive loss (537) (777)
TOTAL SHAREHOLDERS’ EQUITY $ 36,577 $ 35,119 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $347,104 $327,465
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED JUNE 30 SIX MONTHS ENDED JUNE 30 2008 2007 2008 2007
INTEREST INCOME:
Interest and fees on loans $4,017 $4,485 $ 8,430 $ 8,800
Interest on securities 828 801 1,677 1,619
Other interest income 48 2 70 15
TOTAL INTEREST INCOME 4,893 5,288 10,177 10,434
INTEREST EXPENSE:
Interest on deposits 1,166 1,601 2,594 3,154
Other interest expense 441 412 917 750
TOTAL INTEREST EXPENSE 1,607 2,013 3,511 3,904
Net interest income 3,286 3,275 6,666 6,530
Provision for loan losses 48 124 155 202
Net interest income after provision for loan losses 3,238 3,151 6,511 6,328
Noninterest income 680 902 1,636 1,548
Noninterest expense 2,617 2,647 5,346 5,266
Net income before federal income taxes 1,301 1,406 2,801 2,610
Federal income tax provision 423 450 921 839
NET INCOME $ 878 $ 956 $ 1,880 $ 1,771 EARNINGS PER SHARE $ 0.36 $ 0.39 $ 0.77 $ 0.72