SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
October 17, 2002
CSB Bancorp, Inc.
(Exact name of Registrant as specified in its Charter)
Ohio | 0-21714 | 34-1687530 |
(State or other jurisdiction | (Commission | (IRS Employer |
of incorporation) | File No.) | Identification Number) |
6 West Jackson Street, P.O. Box 232, Millersburg, Ohio | 44654 |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (330) 674-9015
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events and Regulation FD Disclosure
On October 17, 2002, CSB Bancorp, Inc. released a quarterly report to shareholders that included its financial statements for the period ended September 30, 2002. A copy of the quarterly report to shareholders is attached to this report as Exhibit 99.1.
Item 7. Financial Statements and Exhibits
(a) | Exhibits | |
99.1 | Quarterly report to shareholders for the period ended September 30, 2002. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CSB BANCORP, INC. | |||||||
Date: October 17, 2002 | By: /s/ C. JAMES BESS | ||||||
C. James Bess Chairman, President and CEO | |||||||
Exhibit 99.1
To our Shareholders:
The Company recorded net income for the first nine months of 2002 of $1,516,904, or $0.58 per share. As a result of improving financial performance, the Board of Directors increased the third quarter dividend from the previous two quarters' $0.05 to $0.10. The Bank's global fundamentals continue to progress according to plan.
Management is particularly pleased and proud of the rapid progress that has and continues to be made in improving asset quality. The inherent risk associated with the loan portfolio is now at or below peer, based on regulatory grading formulas and considered to be moderate and declining by the Bank's most recent September 2002 outside loan review. While maintaining a conservative bias, $321,000 was removed from the Allowance for Loan Losses during the quarter, which increased net income by approximately $212,000. Other income continues to outperform last year, and operating expenses have and are being reduced from 2001.
Due to national economic conditions and the equities markets performance, the Federal Reserve has continued to not raise interest rates, as had been anticipated one year ago. As a result, the Bank's variable lending rates have remained at historical low levels. Any action to increase or lower interest rates by the Federal Reserve will have an impact on future financial performance. Annual net income for 2002 is expected to approach twice the 2001 annual net income of $1,059,000. The Company completed the first nine months of 2002 with a capital-to-assets ratio of 11.45% and a per share book value of $12.79.
As note in earlier communications, the Company has made great strides over the past twenty-one months, and is currently engaged in productive post turnaround activities to promote the franchise and further enhance shareholder value.
Thank you for your continuing support of CSB.
/s/ C. James Bess
C. James Bess
Chairman, President and CEO
QUARTERLY REPORT
SEPTEMBER 30, 2002
CSB
CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
(000 OMITTED) EXCEPT SHARE DATA
SEPTEMBER 30 2002 2001 | ||
ASSETS: | ||
Cash and due from banks | $12,801 | $12,435 |
Federal funds sold | 8,296 | 26,180 |
Securities | 73,910 | 94,847 |
Net loans | 186,439 | 171,693 |
Premises & equipment, net | 8,417 | 9,288 |
Other assets | 4,061 | 5,642 |
TOTAL ASSETS | $293,924 | $320,085 |
LIABILITIES: | ||
Deposits | $229,977 | $266,277 |
Securities sold under agreements to repurchase | 13,533 | 13,544 |
Other borrowings | 15,536 | 6,531 |
Other liabilities | 1,222 | 973 |
TOTAL LIABILITIES | $260,268 | $287,325 |
SHAREHOLDERS’ EQUITY: | ||
Common stock | $16,674 | $16,674 |
Additional paid-in capital | 6,414 | 6,414 |
Retained earnings | 11,523 | 10,644 |
Treasury stock | (1,105) | (1,338) |
Accumulated other comprehensive income | 150 | 366 |
TOTAL SHAREHOLDERS’ EQUITY | $33,656 | $32,760 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $293,924 | $320,085 |
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(000 OMITTED) EXCEPT SHARE DATA
NINE MONTHS ENDED SEPTEMBER 30 2002 2001 | ||
INTEREST INCOME: | ||
Interest & fees on loans | $9,422 | $13,026 |
Interest on securities | 3,019 | 3,483 |
Other interest income | 172 | 406 |
TOTAL INTEREST INCOME | $12,613 | $16,915 |
INTEREST EXPENSE: | ||
Interest on deposits | $4,611 | $8,413 |
Other interest expense | 496 | 614 |
TOTAL INTEREST EXPENSE | $5,107 | $9,027 |
Net interest income | $7,506 | $7,888 |
Less provision (credit) for loan losses | (562) | 183 |
Net interest income after provision (credit) for loan losses | $8,068 | $7,705 |
Total other income | 1,571 | 1,498 |
Total other expense | 8,144 | 8,796 |
Benefit from income taxes | 22 | 397 |
NET INCOME | $1,517 | $804 |
EARNINGS PER SHARE | $0.58 | $0.31 |
FINANCIAL HIGHLIGHTS
(000 OMITTED) EXCEPT SHARE DATA
SEPTEMBER 30 2002 2001 | ||
Assets | $293,924 | $320,085 |
Net loans | 186,439 | 171,693 |
Securities | 73,910 | 94,847 |
Deposits | 229,977 | 266,277 |
Shareholders’ equity | 33,656 | 32,760 |
Net income | 1,517 | 804 |
Earnings per share | .58 | .31 |
Book value per | 12.79 | 12.48 |
*Quarterly price per share: High Low | 19.15 17.00 | 16.95 13.10 |
*Includes transactions reported by market makers and private transactions known to the Company.
KEY RATIOS
SEPTEMBER 30 2002 2001 | ||
Return on average assets | 0.69% | 0.34% |
Return on average equity | 6.11% | 3.40% |
Loan to deposit | 82.40% | 66.22% |
Equity to assets | 11.45% | 10.23% |
Copies of
CSB BANCORP, INC.
S.E.C. Filings may be obtained by writing:
A. Lee Miller, CFO
CSB BANCORP, INC.
6 West Jackson Street
Millersburg, Ohio 44654
(800) 654-9015 or 330-674-9015
Stock Symbol: CSBB.OB
Website: www.csb1.com