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)
July 23, 2001
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 July 23, 2001, CSB Bancorp, Inc. released a quarterly report to shareholders that included its financial statements for the period ended June 30, 2001. 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 dated July 23, 2001. |
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: July 23, 2001 | By: /s/C. James Bess | ||||||
C. James Bess
President and Chief Executive Officer |
Exhibit 99.1
The financial information customarily given to Shareholders is enclosed. As you can see, the first six months of 2001 have not been, from a purely financial point of view, profitable for the Company. However, on other fronts, such as staffing and complying with regulatory requirements, the Company continues to make good progress.
The Company's earnings have been negatively impacted primarily by three factors. First, the Bank continues to experience difficulties with certain loans with some of its longstanding customers. Second, the methodologies employed in the calculation of the Bank's Allowance for Loan and Lease Losses (ALLL), that were approved by the Bank's regulators in 2001, provide an appropriate, but more conservative bias than the former methodologies. Third, the continuing interest rate reductions by the Federal Reserve, which in turn cause the Bank to lower its prime lending rate, have reduced interest income. While it is difficult to know the extent to which problem loans are affected by the economy and/or problems inherent in certain industries with which some of the Bank's borrowers do business, the loan problems nevertheless do exist. As a result, the ALLL for the six months ended June 30, 2001 was increased by over $2.7 million. That, taken together with the decrease in interest income, resulted in a loss of over $1 million for the six month period.
Total assets at June 30, 2001 were $311.1 million. Net loans were $179.1 million, deposits totaled nearly $260.0 million, and shareholders equity amounted to $30.7 million or $11.69 per share.
Management is very disappointed to report these results. However, every effort is being made to mitigate loan risk, control losses, and to continue to improve the Company.
Thank you for your continuing support. If you should have any questions, please do not hesitate to contact me.
/s/C. James Bess
C. James Bess
President and Chief Executive Officer
QUARTERLY REPORT
JUNE 30, 2001
CSB
CSB BANCORP, INC.
Stock Symbol CSBB.OB
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
(000 OMITTED) EXCEPT SHARE DATA
JUNE 30 | ||
2001 | 2000 | |
ASSETS: | ||
Cash and due from banks | $11,941 | $9,737 |
Federal funds sold | 15,665 | --- |
Securities | 88,808 | 99,326 |
Net loans | 179,146 | 207,275 |
Premises & equipment, net | 9,439 | 8,762 |
Other assets | 6,122 | 5,174 |
TOTAL ASSETS | $311,121
======= |
$330,274
======= |
LIABILITIES: | ||
Deposits | $259,991 | $259,606 |
Securities sold under agreements to repurchase | 11,835 | 14,630 |
Federal funds purchased | --- | 14,550 |
Other borrowings | 7,674 | 8,884 |
Other liabilities | 946 | 1,093 |
TOTAL LIABILITIES | $280,446 | $298,763 |
SHAREHOLDERS' EQUITY: | ||
Common stock | $16,674 | $16,674 |
Additional paid-in capital | 6,414 | 6,526 |
Retained earnings | 8,790 | 10,276 |
Treasury stock | (1,339) | (1,535) |
Accumulated other comprehensive income | 136 | (430) |
TOTAL SHAREHOLDERS' EQUITY | $30,675 | $31,511 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $311,121
======= |
$330,274
======= |
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(000 OMITTED) EXCEPT SHARE DATA
SIX MONTHS ENDED JUNE 30 | ||
2001 | 2000 | |
INTEREST INCOME: | ||
Interest & fees on loans | $9,106 | $9,639 |
Interest on securities | 2,318 | 2,739 |
Other interest income | 193 | 14 |
TOTAL INTEREST INCOME | $11,617 | $12,392 |
INTEREST EXPENSE: | ||
Interest on deposits | $5,709 | $5,432 |
Other interest expense | 451 | 680 |
TOTAL INTEREST EXPENSE | $6,160 | $6,112 |
Net interest income | $5,457 | $6,280 |
Less provision for loan losses | 2,709 | 2,919 |
Net interest income after provision for loan losses | 2,748 | 3,361 |
Total other income | 998 | 981 |
Total other expense | 5,876 | 4,402 |
Provision for (benefit from) income taxes | (1,080) | (425) |
NET INCOME (LOSS) | ($1,050)
====== |
$365
====== |
FINANCIAL HIGHLIGHTS
(000 OMITTED) EXCEPT SHARE DATA
JUNE 30 | ||
2001 | 2000 | |
Assets | $311,121 | $330,274 |
Net loans | 179,146 | 207,275 |
Securities | 88,808 | 99,326 |
Deposits | 259,991 | 259,606 |
Shareholders' equity | 30,675 | 31,511 |
Net income (loss) | (1,050) | 365 |
Earnings (loss) per share | (0.40) | 0.15 |
Book value per outstanding share | 11.69 | 12.03 |
*Quarterly price per share:
High Low |
19.00
15.75 |
33.00
30.00 |
*Includes transactions reported by market makers and private transactions, known to the Company.
KEY RATIOS
JUNE 30 | ||
2001 | 2000 | |
Return on average assets | (0.68%) | 0.23% |
Return on average equity | (6.71%) | 2.23% |
Loan to deposit | 71.97% | 81.86% |
Capital to assets | 9.86% | 9.54% |