CSB Bancorp, Inc. reports fourth quarter and full year earnings
Quarter ended: Dec. 31, 2011
Full year ended: Dec. 31, 2011
Diluted earnings per share:
- Quarter: $.30
- Full year: $1.35
Net Income
- Quarter: $820,000
- Full year: $3,687,000
Return on average common equity:
- Quarter: 6.58 percent
- Full year: 7.57 percent
Return on average assets:
- Quarter: 0.61 percent
- Full year: 0.78 percent
CSB Bancorp, Inc. (OTCBB: CSBB.ob) announced fourth quarter 2011 net income of $820,000 or 30 cents per basic and diluted share, as compared to $956,000 or 35 cents per basic and diluted share for the same period in 2010.
Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 6.58 percent and 0.61 percent, respectively, compared with 7.95 percent and 0.83 percent for the fourth quarter of 2010.
For the full year of 2011, the company reported net income of $3.7 million or $1.35 per basic and diluted share, as compared to $3.5 million or $1.28 per basic and diluted share in 2010. Full year ROE and ROA were 7.57 percent and 0.78 percent, respectively, compared to 7.43 percent and 0.78 percent in 2010.
Eddie Steiner, president and CEO commented, “During fourth quarter, the company acquired two branches located in Wooster. The transaction added 6,000 new customer relationships, $74 million in deposits, $9 million in loans, and involved $3.7 million in purchase premium. Related acquisition expenses were recognized as incurred, including system conversion and operations integration charges totaling $337,000. We anticipate the Wooster branch presence will assist our continued growth in that market.”
Revenue totaled $5.2 million for the fourth quarter of 2011, a 7 percent increase from the prior-year fourth quarter. Full year revenue of $20.1 million reflects a $1 million, or 5 percent, increase as compared to full year 2010.
Non-interest expense amounted to $3.7 million during the quarter, an increase of $585,000 or 18 percent from fourth quarter 2010. For the full year ended Dec. 31, 2011, including the nonrecurring expenses related to purchase and assumption of Wooster branch operations, non-interest expense increased $1.1 million or 8 percent versus 2010.
The company’s fourth quarter efficiency ratio amounted to 71.5 percent as compared to 64.8 percent for the same quarter in the prior year. Excluding the aforementioned nonrecurring expenses, the fourth quarter efficiency ratio equated to 69.5 percent. The full year 2011 efficiency ratio of 68.1 percent, including the nonrecurring acquisition and conversion expenses, compares to 66.0 percent for the full prior year.
Federal income tax provision was $324,000 for fourth quarter 2011, compared to $440,000 for the same quarter in 2010. Full year income tax of $1.6 million for 2011 was 2 percent higher than prior year and reflects an effective tax rate of 30.3 percent for current year versus 31.0 percent in 2010.
Average total assets during the quarter amounted to $530 million, an increase of $75 million or 17 percent above the same quarter of the prior year. Average loan balances of $320 million were $5 million or 1 percent above prior year fourth quarter, while average securities balances of $116 million increased $40 million or 53 percent as compared to fourth quarter 2010.
Total assets amounted to $551 million on Dec. 31, 2011, up $94 million or 21 percent from Dec. 31, 2010. Net loans increased to $320 million, up $8 million or 3 percent from the prior year-end, while securities balances of $128 million were $48 million or 59 percent higher than year ago balances.
Average commercial loan balances for the quarter, including commercial real estate, increased $12 million or 6 percent above year ago levels. Average residential mortgage balances declined by $11 million or 15 percent during the year. The decline of in-house mortgage balances was primarily due to customers continuing to select secondary market mortgage products because of the historic low interest rates prevailing in those fixed rate products. Average home equity balances increased $3 million or 10 percent, and average consumer credit balances increased $81 thousand or 1 percent versus the same quarter of the prior year.
Net charge-offs for the quarter and the full year were $275 thousand and $900 thousand, respectively. Net charge-offs equated to 0.28 percent of average loans during 2011 as compared to 0.40 percent during 2010.
Nonperforming assets totaled $3.5 million or 1.08 percent of total loans plus other real estate at Dec. 31, 2011, compared to $4.6 million or 1.47 percent at the prior year-end. Delinquent loan balances as of year-end 2011 amounted to 2.04 percent of total loans as compared to 2.55 percent at the end of 2010.
The company funded $240 thousand in loan loss provision during the fourth quarter and the allowance for loan losses amounted to 1.26 percent of total loans on Dec. 31, 2011. The ratio of the allowance for loan losses to nonperforming loans stood at 117 percent at the end of 2011.
Commenting on the company’s credit quality, Steiner noted, “Our level of nonperforming assets remains somewhat elevated, but each quarter of 2011 reflected improvement as compared to the prior year quarter. Early stage delinquencies within the loan portfolio at the end of 2011 are also lower than prior year levels.”
Average deposit balances grew by $72 million, or 20 percent, during the fourth quarter, attributable almost entirely to the Wooster market transaction. Total average deposits of $422 million for the quarter were 22 percent above the prior year’s fourth quarter average.
Deposit balances totaled $444 million at year-end, an increase of $90 million or 25 percent from the prior year-end. Within the deposit category, average non interest-bearing account balances for the fourth quarter increased by $16 million, or 23 percent above the same period in the prior year. Average interest-bearing checking, money market and traditional savings balances increased $42 million or 33 percent from year ago levels, while average time deposit balances grew by $18 million or 12 percent during the year. In addition to the changes in average deposit balances, the average balance of securities sold under repurchase agreement during the fourth quarter grew by $4 million or 13 percent above the average for the same period in the prior year. Repurchase agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts.
Shareholders’ equity totaled $49.4 million on Dec. 31, 2011 with 2.7 million common shares outstanding. The tangible equity to assets ratio amounted to 8.0 percent on Dec. 31, 2011, as compared to 9.9 percent on Dec. 31, 2010. The company declared a common dividend of $.18 per share during the quarter. Based on the Dec. 31, 2011 closing stock price of $16.75 per share, the company’s annual dividend yield approximates 4.3 percent.
Full year ended: Dec. 31, 2011
Diluted earnings per share:
- Quarter: $.30
- Full year: $1.35
Net Income
- Quarter: $820,000
- Full year: $3,687,000
Return on average common equity:
- Quarter: 6.58 percent
- Full year: 7.57 percent
Return on average assets:
- Quarter: 0.61 percent
- Full year: 0.78 percent
CSB Bancorp, Inc. (OTCBB: CSBB.ob) announced fourth quarter 2011 net income of $820,000 or 30 cents per basic and diluted share, as compared to $956,000 or 35 cents per basic and diluted share for the same period in 2010.
Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 6.58 percent and 0.61 percent, respectively, compared with 7.95 percent and 0.83 percent for the fourth quarter of 2010.
For the full year of 2011, the company reported net income of $3.7 million or $1.35 per basic and diluted share, as compared to $3.5 million or $1.28 per basic and diluted share in 2010. Full year ROE and ROA were 7.57 percent and 0.78 percent, respectively, compared to 7.43 percent and 0.78 percent in 2010.
Eddie Steiner, president and CEO commented, “During fourth quarter, the company acquired two branches located in Wooster. The transaction added 6,000 new customer relationships, $74 million in deposits, $9 million in loans, and involved $3.7 million in purchase premium. Related acquisition expenses were recognized as incurred, including system conversion and operations integration charges totaling $337,000. We anticipate the Wooster branch presence will assist our continued growth in that market.”
Revenue totaled $5.2 million for the fourth quarter of 2011, a 7 percent increase from the prior-year fourth quarter. Full year revenue of $20.1 million reflects a $1 million, or 5 percent, increase as compared to full year 2010.
Non-interest expense amounted to $3.7 million during the quarter, an increase of $585,000 or 18 percent from fourth quarter 2010. For the full year ended Dec. 31, 2011, including the nonrecurring expenses related to purchase and assumption of Wooster branch operations, non-interest expense increased $1.1 million or 8 percent versus 2010.
The company’s fourth quarter efficiency ratio amounted to 71.5 percent as compared to 64.8 percent for the same quarter in the prior year. Excluding the aforementioned nonrecurring expenses, the fourth quarter efficiency ratio equated to 69.5 percent. The full year 2011 efficiency ratio of 68.1 percent, including the nonrecurring acquisition and conversion expenses, compares to 66.0 percent for the full prior year.
Federal income tax provision was $324,000 for fourth quarter 2011, compared to $440,000 for the same quarter in 2010. Full year income tax of $1.6 million for 2011 was 2 percent higher than prior year and reflects an effective tax rate of 30.3 percent for current year versus 31.0 percent in 2010.
Average total assets during the quarter amounted to $530 million, an increase of $75 million or 17 percent above the same quarter of the prior year. Average loan balances of $320 million were $5 million or 1 percent above prior year fourth quarter, while average securities balances of $116 million increased $40 million or 53 percent as compared to fourth quarter 2010.
Total assets amounted to $551 million on Dec. 31, 2011, up $94 million or 21 percent from Dec. 31, 2010. Net loans increased to $320 million, up $8 million or 3 percent from the prior year-end, while securities balances of $128 million were $48 million or 59 percent higher than year ago balances.
Average commercial loan balances for the quarter, including commercial real estate, increased $12 million or 6 percent above year ago levels. Average residential mortgage balances declined by $11 million or 15 percent during the year. The decline of in-house mortgage balances was primarily due to customers continuing to select secondary market mortgage products because of the historic low interest rates prevailing in those fixed rate products. Average home equity balances increased $3 million or 10 percent, and average consumer credit balances increased $81 thousand or 1 percent versus the same quarter of the prior year.
Net charge-offs for the quarter and the full year were $275 thousand and $900 thousand, respectively. Net charge-offs equated to 0.28 percent of average loans during 2011 as compared to 0.40 percent during 2010.
Nonperforming assets totaled $3.5 million or 1.08 percent of total loans plus other real estate at Dec. 31, 2011, compared to $4.6 million or 1.47 percent at the prior year-end. Delinquent loan balances as of year-end 2011 amounted to 2.04 percent of total loans as compared to 2.55 percent at the end of 2010.
The company funded $240 thousand in loan loss provision during the fourth quarter and the allowance for loan losses amounted to 1.26 percent of total loans on Dec. 31, 2011. The ratio of the allowance for loan losses to nonperforming loans stood at 117 percent at the end of 2011.
Commenting on the company’s credit quality, Steiner noted, “Our level of nonperforming assets remains somewhat elevated, but each quarter of 2011 reflected improvement as compared to the prior year quarter. Early stage delinquencies within the loan portfolio at the end of 2011 are also lower than prior year levels.”
Average deposit balances grew by $72 million, or 20 percent, during the fourth quarter, attributable almost entirely to the Wooster market transaction. Total average deposits of $422 million for the quarter were 22 percent above the prior year’s fourth quarter average.
Deposit balances totaled $444 million at year-end, an increase of $90 million or 25 percent from the prior year-end. Within the deposit category, average non interest-bearing account balances for the fourth quarter increased by $16 million, or 23 percent above the same period in the prior year. Average interest-bearing checking, money market and traditional savings balances increased $42 million or 33 percent from year ago levels, while average time deposit balances grew by $18 million or 12 percent during the year. In addition to the changes in average deposit balances, the average balance of securities sold under repurchase agreement during the fourth quarter grew by $4 million or 13 percent above the average for the same period in the prior year. Repurchase agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts.
Shareholders’ equity totaled $49.4 million on Dec. 31, 2011 with 2.7 million common shares outstanding. The tangible equity to assets ratio amounted to 8.0 percent on Dec. 31, 2011, as compared to 9.9 percent on Dec. 31, 2010. The company declared a common dividend of $.18 per share during the quarter. Based on the Dec. 31, 2011 closing stock price of $16.75 per share, the company’s annual dividend yield approximates 4.3 percent.
Published: February 2, 2012
