CSB Bancorp Earnings 2020-09-30

CSB Bancorp Earnings 2020-09-30

CSBB 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow

csbb-10q_20200930.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2020

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 0-21714

CSB Bancorp, Inc.

(Exact Name of Registrant as Specified in its Charter)

Ohio	34-1687530
( State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
91 North Clay Street, P.O. Box 232 Millersburg, OH	44654
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (330) 674-9015

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Shares, $6.25 par value

CSBB

OTCPink

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☒ No ☐

As of November 1, 2020, the registrant had 2,742,350 shares of common stock, $6.25 par value per share, outstanding.

CSB BANCORP, INC.

FORM 10-Q

QUARTER ENDED September 30, 2020

Table of Contents

	Part I - Financial Information
		Page
ITEM 1 –	FINANCIAL STATEMENTS (Unaudited)	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Changes in Shareholders' Equity	6
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Consolidated Financial Statements	8
ITEM 2 –	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	28
ITEM 3 –	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	35
ITEM 4 –	CONTROLS AND PROCEDURES	36

	Part II - Other Information
ITEM1 –	Legal Proceedings	37
ITEM1A –	Risk Factors	37
ITEM2 –	Unregistered Sales of Equity Securities and Use of Proceeds	37
ITEM3 –	Defaults upon Senior Securities	37
ITEM4 –	Mine Safety Disclosures	37
ITEM5 –	Other Information	37
ITEM6 –	Exhibits	38
	Signatures	39

CSB BANCORP, INC.

PART I – FINANCIAL INFORMATION

ITEM 1. – FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30,			December 31,
(Dollars in thousands)	2020			2019
ASSETS
Cash and cash equivalents
Cash and due from banks	$	18,269		$	17,648
Interest-earning deposits in other banks		179,875			84,369
Total cash and cash equivalents		198,144			102,017
Securities
Available-for-sale, at fair value		112,279			112,146
Held-to-maturity (fair value 2020-$10,120; 2019-13,950)		9,901			13,869
Equity securities		82			92
Restricted stock, at cost		4,614			4,614
Total securities		126,876			130,721
Loans held for sale		1,488			622
Loans		628,084			551,633
Less allowance for loan losses		8,355			7,017
Net loans		619,729			544,616
Premises and equipment, net		12,685			12,040
Core deposit intangible		59			104
Goodwill		4,728			4,728
Bank-owned life insurance		19,284			18,894
Accrued interest receivable and other assets		4,985			4,941
TOTAL ASSETS	$	987,978		$	818,683

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Noninterest-bearing	$	252,891		$	197,780
Interest-bearing		587,765			485,766
Total deposits		840,656			683,546
Short-term borrowings		41,645			38,889
Other borrowings		9,765			6,330
Accrued interest payable and other liabilities		4,059			4,442
Total liabilities		896,125			733,207
SHAREHOLDERS' EQUITY
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares; outstanding 2,742,350 shares 2020 and 2019		18,629			18,629
Additional paid-in capital		9,815			9,815
Retained earnings		67,325			61,740
Treasury stock at cost: 238,252 shares 2020 and 2019		(4,780	)		(4,780	)
Accumulated other comprehensive income		864			72
Total shareholders' equity		91,853			85,476
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	987,978		$	818,683

See notes to unaudited consolidated financial statements.

CSB BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2020			2019		2020			2019
INTEREST AND DIVIDEND INCOME
Loans, including fees	$	7,190		$	7,239	$	21,145		$	21,496
Taxable securities		372			534		1,462			1,705
Nontaxable securities		110			133		343			401
Other		42			356		312			749
Total interest and dividend income		7,714			8,262		23,262			24,351
INTEREST EXPENSE
Deposits		636			966		2,139			2,711
Short-term borrowings		14			78		75			264
Other borrowings		23			30		79			106
Total interest expense		673			1,074		2,293			3,081
NET INTEREST INCOME		7,041			7,188		20,969			21,270
PROVISION FOR LOAN LOSSES		377			285		1,272			855
Net interest income, after provision for loan losses		6,664			6,903		19,697			20,415
NON INTEREST INCOME
Service charges on deposit accounts		252			333		753			938
Trust services		236			234		662			670
Debit card interchange fees		433			377		1,209			1,093
Gain on sale of loans, net		567			132		1,189			287
Earnings on bank owned life insurance		131			120		390			326
Unrealized gain or (loss) on equity securities, net		(1	)		5		(10	)		8
Other income		244			239		653			655
Total noninterest income		1,862			1,440		4,846			3,977
NON INTEREST EXPENSES
Salaries and employee benefits		2,959			2,993		8,603			8,750
Occupancy expense		246			209		711			618
Equipment expense		172			128		505			408
Professional and director fees		232			316		843			963
Financial institutions and franchise tax expense		171			153		513			459
Marketing and public relations		96			149		289			405
Software expense		269			225		755			674
Debit card expense		165			142		451			401
Amortization of intangible assets		15			16		45			47
FDIC insurance expense		17			-		103			98
Other expenses		708			668		1,948			1,867
Total noninterest expenses		5,050			4,999		14,766			14,690
Income before income taxes		3,476			3,344		9,777			9,702
FEDERAL INCOME TAX PROVISION		676			649		1,888			1,881
NET INCOME	$	2,800		$	2,695	$	7,889		$	7,821
Basic and diluted net earnings per share	$	1.02		$	0.98	$	2.88		$	2.85

See notes to unaudited consolidated financial statements

CSB BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2020			2019			2020			2019
Net income	$	2,800		$	2,695		$	7,889		$	7,821
Other comprehensive income (loss)
Unrealized (losses) gains arising during the period		(202	)		275			955			1,786
Amortization of discount on securities transferred to held-to-maturity		17			15			47			45
Income tax effect		39			(61	)		(210	)		(384	)
Other comprehensive income (loss)		(146	)		229			792			1,447
Total comprehensive income	$	2,654		$	2,924		$	8,681		$	9,268

See notes to unaudited consolidated financial statements.

CSB BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

(Dollars in thousands)	Common stock		Additional paid-in capital		Retained earnings		Treasury stock			Accumulated other comprehensive income (loss)			Total
Three Months Ended September 30, 2020
Balance, beginning of period	$	18,629	$	9,815	$	65,293	$	(4,780	)	$	1,010		$	89,967
Net income		—		—		2,800		—			—			2,800
Other comprehensive loss		—		—		—		—			(146	)		(146	)
Cash dividends declared, $0.28 per share		—

Price	40.00	EPS	4
Shares	3	P/E	11
MCap	110	P/FCF	15
Net Debt	-80	EBIT	15
TEV	30	TEV/EBIT	2
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-11-09
10-Q	2020-06-30	Filed 2020-08-10
10-Q	2020-03-31	Filed 2020-05-08
10-K	2019-12-31	Filed 2020-03-16
10-Q	2019-09-30	Filed 2019-11-08
10-Q	2019-06-30	Filed 2019-08-08
10-Q	2019-03-31	Filed 2019-05-09
10-K	2018-12-31	Filed 2019-03-15
10-Q	2018-09-30	Filed 2018-11-09
10-Q	2018-06-30	Filed 2018-08-09
10-Q	2018-03-31	Filed 2018-05-10
10-K	2017-12-31	Filed 2018-03-16
10-Q	2017-09-30	Filed 2017-11-09
10-Q	2017-06-30	Filed 2017-08-11
10-Q	2017-03-31	Filed 2017-05-12
10-K	2016-12-31	Filed 2017-03-23
10-Q	2016-09-30	Filed 2016-11-10
10-Q	2016-06-30	Filed 2016-08-11
10-Q	2016-03-31	Filed 2016-05-13
10-K	2015-12-31	Filed 2016-03-24
10-Q	2015-09-30	Filed 2015-11-13
10-Q	2015-06-30	Filed 2015-08-13
10-Q	2015-03-31	Filed 2015-05-14
10-K	2014-12-31	Filed 2015-03-23
10-Q	2014-09-30	Filed 2014-11-13
10-Q	2014-06-30	Filed 2014-08-13
10-Q	2014-03-31	Filed 2014-05-13
10-K	2013-12-31	Filed 2014-03-25
10-Q	2013-09-30	Filed 2013-11-13
10-Q	2013-06-30	Filed 2013-08-13
10-Q	2013-03-31	Filed 2013-05-14
10-K	2012-12-31	Filed 2013-03-25
10-Q	2012-09-30	Filed 2012-11-13
10-Q	2012-06-30	Filed 2012-08-13
10-Q	2012-03-31	Filed 2012-05-14
10-K	2011-12-31	Filed 2012-03-26
10-Q	2011-09-30	Filed 2011-11-14
10-Q	2011-06-30	Filed 2011-08-12
10-Q	2011-03-31	Filed 2011-05-13
10-K	2010-12-31	Filed 2011-03-24
10-Q	2010-09-30	Filed 2010-11-12
10-Q	2010-06-30	Filed 2010-08-13
10-Q	2010-03-31	Filed 2010-05-14
10-K	2009-12-31	Filed 2010-03-26

8-K	2021-01-25	Earnings, Exhibits
8-K	2020-11-20
8-K	2020-10-21
8-K	2020-07-21
8-K	2020-04-29
8-K	2020-04-21
8-K	2020-01-24
8-K	2019-12-20
8-K	2019-10-22
8-K	2019-09-27
8-K	2019-07-23
8-K	2019-04-24
8-K	2019-04-16
8-K	2019-01-25
8-K	2018-11-16
8-K	2018-10-24
8-K	2018-09-27
8-K	2018-07-24
8-K	2018-04-25
8-K	2018-04-25
8-K	2018-03-22
8-K	2018-01-25
8-K	2018-01-25

EX-11	csbb-ex11_9.htm
EX-31.1	csbb-ex311_6.htm
EX-31.2	csbb-ex312_7.htm
EX-32.1	csbb-ex321_10.htm
EX-32.2	csbb-ex322_8.htm

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company