CSB Bancorp 10-Q
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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þ |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended: September 30, 2006
OR
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o |
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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)
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Ohio
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34-1687530 |
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer Identification Number) |
91 North Clay, P.O. Box 232, Millersburg, Ohio 44654
(Address of principal executive offices)
(330) 674-9015
(Registrants telephone number)
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 þ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer,
or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in
Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer o Accelerated filer o Non-accelerated filer þ
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).
Yes o No þ
Indicate the number of shares outstanding of the registrants common stock, as of the latest
practicable date.
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Common stock, $6.25 par value
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Outstanding at November 13, 2006: |
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2,499,475 common shares |
CSB BANCORP, INC.
FORM 10-Q
QUARTER ENDED September 30, 2006
Table of Contents
CSB BANCORP, INC.
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
(Unaudited)
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September 30, |
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December 31, |
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2006 |
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2005 |
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ASSETS |
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Cash and due from banks |
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$ |
10,493,565 |
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$ |
14,785,250 |
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Interest-earning deposits in other banks |
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53,570 |
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124,726 |
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Federal funds sold |
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1,740,000 |
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Total cash and cash equivalents |
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10,547,135 |
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16,649,976 |
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Securities available-for-sale, at fair value |
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69,412,444 |
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78,273,248 |
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Restricted stock, at cost |
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3,063,700 |
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2,947,000 |
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Total securities |
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72,476,144 |
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81,220,248 |
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Loans |
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229,832,402 |
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215,019,673 |
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Less allowance for loan losses |
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2,536,827 |
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2,445,494 |
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Net loans |
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227,295,575 |
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212,574,179 |
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Premises and equipment, net |
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7,432,171 |
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7,671,822 |
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Accrued interest receivable and other assets |
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2,476,297 |
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2,873,007 |
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Total Assets |
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$ |
320,227,322 |
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$ |
320,989,232 |
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LIABILITIES |
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Deposits |
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Noninterest-bearing |
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$ |
37,502,503 |
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$ |
41,807,069 |
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Interest-bearing |
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212,102,561 |
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213,595,648 |
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Total deposits |
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249,605,064 |
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255,402,717 |
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Short-term borrowings |
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31,421,981 |
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21,417,616 |
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Other borrowings |
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2,594,067 |
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8,067,840 |
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Accrued interest payable and other liabilities |
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2,052,890 |
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930,800 |
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Total liabilities |
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285,674,002 |
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285,818,973 |
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SHAREHOLDERS EQUITY |
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Common stock, $6.25 par value: Authorized 9,000,000
shares; issued 2,667,786 shares |
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16,673,667 |
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16,673,667 |
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Additional paid-in capital |
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6,421,490 |
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6,413,915 |
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Retained earnings |
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15,802,515 |
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14,752,250 |
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Treasury stock at cost: 168,311 shares in 2006 and
89,287 shares in 2005 |
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(3,690,576 |
) |
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(2,086,686 |
) |
Accumulated other comprehensive loss |
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(653,776 |
) |
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(582,887 |
) |
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Total shareholders equity |
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34,553,320 |
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35,170,259 |
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Total Liabilities and Shareholders Equity |
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$ |
320,227,322 |
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$ |
320,989,232 |
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See notes to unaudited consolidated financial statements.
3.
CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2006 |
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2005 |
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2006 |
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2005 |
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Interest income |
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Loans, including fees |
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$ |
4,325,203 |
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$ |
3,730,451 |
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$ |
12,294,678 |
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$ |
10,558,039 |
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Taxable securities |
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735,071 |
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534,281 |
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2,272,037 |
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1,571,472 |
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Nontaxable securities |
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95,495 |
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160,315 |
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297,011 |
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486,913 |
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Other |
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297 |
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46,720 |
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7,136 |
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48,287 |
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Total interest income |
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5,156,066 |
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4,471,767 |
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14,870,862 |
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12,664,711 |
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Interest expense |
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Deposits |
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1,440,410 |
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1,102,453 |
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3,880,245 |
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2,965,344 |
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Other |
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421,566 |
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155,365 |
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1,129,321 |
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528,287 |
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Total interest expense |
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1,861,976 |
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1,257,818 |
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|
5,009,566 |
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3,493,631 |
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Net interest income |
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3,294,090 |
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|
3,213,949 |
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|
9,861,296 |
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|
9,171,080 |
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Provision for loan losses |
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75,000 |
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|
70,666 |
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|
221,667 |
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|
282,664 |
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Net interest income after provision
for loan losses |
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3,219,090 |
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|
3,143,283 |
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|
9,639,629 |
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8,888,416 |
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Non-interest income |
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|
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|
|
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Service charges on deposit
accounts |
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325,029 |
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230,162 |
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|
977,755 |
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|
676,906 |
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Gain on sale of securities |
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|
247,047 |
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Trust and financial services |
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|
135,904 |
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|
113,021 |
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|
392,495 |
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|
351,057 |
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Other income |
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|
215,409 |
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|
194,929 |
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|
608,742 |
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|
597,220 |
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Total non-interest income |
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676,342 |
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|
538,112 |
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1,978,992 |
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1,872,230 |
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Non-interest expenses |
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|
|
|
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|
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|
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|
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Salaries and employee benefits |
|
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1,538,491 |
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1,424,205 |
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4,459,994 |
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|
4,174,377 |
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Occupancy expense |
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|
176,360 |
|
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|
168,936 |
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|
515,104 |
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|
514,583 |
|
Equipment expense |
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|
118,813 |
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|
135,968 |
|
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|
376,326 |
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|
|
385,067 |
|
State franchise tax |
|
|
113,425 |
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|
|
106,801 |
|
|
|
334,817 |
|
|
|
319,379 |
|
Professional and director fees |
|
|
171,042 |
|
|
|
187,126 |
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|
|
519,494 |
|
|
|
495,124 |
|
Other expenses |
|
|
585,737 |
|
|
|
685,986 |
|
|
|
2,114,063 |
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|
|
2,131,186 |
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|
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|
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Total non-interest expenses |
|
|
2,703,868 |
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|
|
2,709,022 |
|
|
|
8,319,798 |
|
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|
8,019,716 |
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|
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Income before income taxes |
|
|
1,191,564 |
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|
972,373 |
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|
|
3,298,823 |
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|
2,740,930 |
|
Federal income tax provision |
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|
378,000 |
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|
283,000 |
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|
|
1,034,700 |
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|
771,000 |
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Net income |
|
$ |
813,564 |
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|
$ |
689,373 |
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$ |
2,264,123 |
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$ |
1,969,930 |
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Basic and diluted earnings
per share |
|
$ |
0.32 |
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|
$ |
0.26 |
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$ |
0.89 |
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|
$ |
0.74 |
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|
|
|
|
|
|
|
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|
See notes to unaudited consolidated financial statements.
4.
CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
(Unaudited)
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|
|
|
|
|
|
|
|
Three Months Ended |
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Nine Months Ended |
|
|
|
September 30, |
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September 30, |
|
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|
2006 |
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2005 |
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|
2006 |
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|
2005 |
|
Balance at beginning of period |
|
$ |
33,798,998 |
|
|
$ |
36,469,250 |
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|
$ |
35,170,259 |
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|
$ |
36,207,507 |
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Comprehensive income: |
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Net income |
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|
813,564 |
|
|
|
689,373 |
|
|
|
2,264,123 |
|
|
|
1,969,930 |
|
Change in net unrealized
gain (loss), net of reclassification
adjustments and related
income taxes $387,845,
($203,939), ($36,518), and
($347,307), respectively |
|
|
752,875 |
|
|
|
(395,881 |
) |
|
|
(70,889 |
) |
|
|
(674,185 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
|
1,566,439 |
|
|
|
293,492 |
|
|
|
2,193,234 |
|
|
|
1,295,745 |
|
|
|
|
|
|
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|
|
|
|
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|
Issuance of 6 shares from treasury |
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|
|
|
|
|
|
|
|
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|
121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
2,525 |
|
|
|
|
|
|
|
7,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of treasury shares |
|
|
(414,726 |
) |
|
|
(315 |
) |
|
|
(1,603,890 |
) |
|
|
(355 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
($0.16 and $0.48 per share in
2006, and $0.14 and $0.42
per share in 2005) |
|
|
(399,916 |
) |
|
|
(370,295 |
) |
|
|
(1,213,858 |
) |
|
|
(1,110,886 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of period |
|
$ |
34,553,320 |
|
|
$ |
36,392,132 |
|
|
$ |
34,553,320 |
|
|
$ |
36,392,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to unaudited consolidated financial statements.
5.
CSB BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2006 |
|
|
2005 |
|
Net cash from operating activities |
|
$ |
3,787,731 |
|
|
$ |
2,706,343 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Securities available-for-sale: |
|
|
|
|
|
|
|
|
Proceeds from maturities, calls and repayments |
|
|
8,715,847 |
|
|
|
3,839,926 |
|
Proceeds from sales |
|
|
|
|
|
|
5,098,433 |
|
Purchases |
|
|
(1,589 |
) |
|
|
(5,560,218 |
) |
Purchase of FHLB stock |
|
|
(116,700 |
) |
|
|
(118,400 |
) |
Proceeds from sale of other real estate |
|
|
412,500 |
|
|
|
|
|
Net change in loans |
|
|
(15,028,161 |
) |
|
|
(1,429,163 |
) |
Premises and equipment expenditures, net |
|
|
(187,576 |
) |
|
|
(542,440 |
) |
|
|
|
|
|
|
|
Net cash provided by (from) investing activities |
|
|
(6,205,679 |
) |
|
|
1,288,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Net change in deposits |
|
|
(5,797,653 |
) |
|
|
7,794,275 |
|
Net change in short-term borrowings |
|
|
10,004,365 |
|
|
|
(657,205 |
) |
Repayment of other borrowings |
|
|
(5,473,773 |
) |
|
|
(5,561,065 |
) |
Purchase of treasury shares |
|
|
(1,603,890 |
) |
|
|
(355 |
) |
Cash dividends paid |
|
|
(813,942 |
) |
|
|
(1,084,436 |
) |
|
|
|
|
|
|
|
Net cash provided by (from) financing activities |
|
|
(3,684,893 |
) |
|
|
491,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents |
|
|
(6,102,841 |
) |
|
|
4,485,695 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
|
16,649,976 |
|
|
|
15,644,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
10,547,135 |
|
|
$ |
20,129,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
4,954,291 |
|
|
$ |
3,478,684 |
|
Income taxes paid |
|
|
756,198 |
|
|
|
515,000 |
|
Non-cash investing activity-transfer of loans to OREO |
|
|
39,560 |
|
|
|
625,000 |
|
See notes to unaudited consolidated financial statements.
6.
CSB BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying condensed consolidated financial statements include the accounts of CSB Bancorp,
Inc. and its wholly-owned subsidiaries, The Commercial and Savings Bank and CSB Investment
Services, LLC (together referred to as the Company or CSB). All significant intercompany
transactions and balances have been eliminated in consolidation.
The condensed consolidated financial statements have been prepared without audit. In the opinion
of management, all adjustments (which include normal recurring adjustments) necessary to present
fairly the Companys financial position at September 30, 2006, and the results of operations and
changes in cash flows for the periods presented have been made.
Certain information and footnote disclosures typically included in financial statements prepared in
accordance with U.S. generally accepted accounting principles have been omitted. The Annual Report
for CSB for the year ended December 31, 2005, contains consolidated financial statements and
related footnote disclosures, which should be read in conjunction with the accompanying
consolidated financial statements. The results of operations for the period ended September 30,
2006 are not necessarily indicative of the operating results for the full year or any future
interim period.
STOCK-BASED COMPENSATION
The Company sponsors a stock-based compensation plan, administered by a committee, under which
incentive stock options may be granted periodically to certain employees. Effective January 1,
2006, CSB adopted FASB Statement No. 123 (revised 2004), Share-Based Payment (FASB No. 123r), using
the modified prospective application method. The modified prospective application method applies to
new awards, to any outstanding liability awards, and to awards modified, repurchased, or cancelled
after January 1, 2006. For all awards granted prior to January 1, 2006, unrecognized compensation
cost, on the date of adoption, will be recognized as an expense in future periods. The results for
prior periods have not been restated.
The adoption of FASB No. 123r reduced net income by approximately $2,525 for the three months ended
September 30, 2006 and $7,575 for the nine months ended September 30, 2006. The following table
illustrates the effect on net income and earnings per share if CSB had applied the fair value
recognition provisions to stock-based employee compensation during the prior period presented. For
purposes of this pro forma disclosure, the value of the options is estimated using the
Black-Scholes option-pricing model and amortized to expense over the options vesting period.
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
|
Nine months ended |
|
|
|
September 30, 2005 |
|
Net income, as reported |
|
$ |
689,373 |
|
|
$ |
1,969,930 |
|
Deduct: Total
stock-based employee
compensation expense
determined under
fair value
based method for all
awards, net of
related tax effects |
|
|
2,800 |
|
|
|
8,400 |
|
|
|
|
|
|
|
|
Pro forma net income |
|
$ |
686,573 |
|
|
$ |
1,961,530 |
|
|
|
|
|
|
|
|
Earnings per share
Basic as reported |
|
$ |
.26 |
|
|
$ |
.74 |
|
Basic pro forma |
|
$ |
.26 |
|
|
$ |
.74 |
|
Diluted as reported |
|
$ |
.26 |
|
|
$ |
.74 |
|
Diluted pro forma |
|
$ |
.26 |
|
|
$ |
.74 |
|
7.
CSB BANCORP, INC.
(Unaudited)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-continued
The pro forma effects are computed using option pricing models, using the following
weighted-average assumptions as of grant date.
|
|
|
|
|
|
|
|
|
|
|
2004 |
|
2003 |
Risk-free interest rate |
|
|
3.34 |
% |
|
|
2.75 |
% |
Dividend yield |
|
|
2.60 |
% |
|
|
2.50 |
% |
Volatility |
|
|
37 |
% |
|
|
37 |
% |
Expected option life |
|
|
3.5 |
yrs. |
|
|
6.4 |
yrs. |
As of September 30, 2006, there was approximately $12,750 of unrecognized compensation cost related
to unvested share-based compensation awards granted. That cost is expected to be recognized over
the next two years.
Options are granted to certain employees at prices equal to the market value of the stock on the
date the options are granted. The 2002 Plan authorizes the issuance of 75,000 shares. The Plan was
amended April 27, 2005 to authorize the issuance of 200,000 shares. The time period during which
any option is exercisable under the Plan is determined by the committee but shall not continue
beyond the expiration of ten years after the date the option is awarded.
The fair value of each option is amortized into compensation expense on a straight-line basis
between the grant date for the option and each vesting date. CSB estimated the fair value of stock
options on the date of the grant using the Black-Scholes option pricing model. The model requires
the use of numerous assumptions, many of which are highly subjective in nature. There were no
options granted in the quarter or the nine-month periods ended September 30, 2006 or 2005.
The following summarizes stock options activity for the nine months ended September 30, 2006:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
|
|
Weighted |
|
Average |
|
|
|
|
Number |
|
Average |
|
Remaining |
|
|
|
|
of |
|
Exercise |
|
Contractual |
|
Aggregate |
|
|
Options |
|
Price |
|
Term (in yrs.) |
|
Intrinsic Value |
Outstanding at January 1, 2006 |
|
|
21,970 |
|
|
$ |
17.09 |
|
|
|
4.28 |
|
|
|
|
|
Granted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercised |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forfeited |
|
|
385 |
|
|
|
16.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at September 30,
2006 |
|
|
21,585 |
|
|
|
17.11 |
|
|
|
3.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable at September 30,
2006 |
|
|
18,106 |
|
|
$ |
17.31 |
|
|
|
2.99 |
|
|
$ |
30,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.
CSB BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 2 SECURITIES
Securities consist of the following at September 30, 2006 and December 31, 2005:
September 30, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
Amortized |
|
|
unrealized |
|
|
unrealized |
|
|
Fair |
|
|
|
Cost |
|
|
gains |
|
|
losses |
|
|
Value |
|
Available-for-sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury security |
|
$ |
99,976 |
|
|
$ |
|
|
|
$ |
601 |
|
|
$ |
99,375 |
|
Obligations of U.S.
government
corporations and agencies |
|
|
38,492,789 |
|
|
|
|
|
|
|
704,032 |
|
|
|
37,788,757 |
|
Mortgage-backed securities |
|
|
23,673,212 |
|
|
|
4,558 |
|
|
|
430,404 |
|
|
|
23,247,366 |
|
Obligations of states and
political subdivisions |
|
|
7,831,070 |
|
|
|
148,855 |
|
|
|
639 |
|
|
|
7,979,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt securities |
|
|
70,097,047 |
|
|
|
153,413 |
|
|
|
1,135,676 |
|
|
|
69,114,784 |
|
Equity Securities |
|
|
305,965 |
|
|
|
3,651 |
|
|
|
11,956 |
|
|
|
297,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available-for-sale |
|
|
70,403,012 |
|
|
|
157,064 |
|
|
|
1,147,632 |
|
|
|
69,412,444 |
|
Restricted stock |
|
|
3.063,700 |
|
|
|
|
|
|
|
|
|
|
|
3,063,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities |
|
$ |
73,466,712 |
|
|
$ |
157,064 |
|
|
$ |
1,147,632 |
|
|
$ |
72,476,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
Amortized |
|
|
unrealized |
|
|
unrealized |
|
|
Fair |
|
|
|
Cost |
|
|
gains |
|
|
losses |
|
|
Value |
|
Available-for-sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury security |
|
$ |
99,938 |
|
|
$ |
|
|
|
$ |
1,313 |
|
|
$ |
98,625 |
|
Obligations of U.S.
government
corporations and agencies |
|
|
42,991,204 |
|
|
|
4,376 |
|
|
|
765,254 |
|
|
|
42,230,326 |
|
Mortgage-backed securities |
|
|
27,368,053 |
|
|
|
14,166 |
|
|
|
376,262 |
|
|
|
27,005,957 |
|
Obligations of states and
political subdivisions |
|
|
8,392,840 |
|
|
|
242,499 |
|
|
|
1,943 |
|
|
|
8,633,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt securities |
|
|
78,852,035 |
|
|
|
261,041 |
|
|
|
1,144,772 |
|
|
|
77,968,304 |
|
Equity Securities |
|
|
304,376 |
|
|
|
6,080 |
|
|
|
5,512 |
|
|
|
304,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available-for-sale |
|
|
79,156,411 |
|
|
|
267,121 |
|
|
|
1,150,284 |
|
|
|
78,273,248 |
|
Restricted stock |
|
|
2,947,000 |
|
|
|
|
|
|
|
|
|
|
|
2,947,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities |
|
$ |
82,103,411 |
|
|
$ |
267,121 |
|
|
$ |
1,150,284 |
|
|
$ |
81,220,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.
CSB BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion focuses on the consolidated financial condition of CSB Bancorp, Inc. and
its subsidiaries (the Company) at September 30, 2006 as compared to December 31, 2005, and the
consolidated results of operations for the quarterly period ending September 30, 2006 compared to
the same period in 2005. The purpose of this discussion is to provide the reader with a more
thorough understanding of the consolidated financial statements. This discussion should be read in
conjunction with the interim consolidated financial statements and related footnotes.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this report that are not historical facts but rather are
forward-looking statements that are subject to certain risks and uncertainties. When used herein,
the terms anticipates, plans, expects, believes, and similar expressions as they relate to
the Company or its management are intended to identify such forward-looking statements. The
Companys actual results, performance or achievements may materially differ from those expressed or
implied in the forward-looking statements. Risks and uncertainties that could cause or contribute
to such material differences include, but are not limited to, general economic conditions, interest
rate environment, competitive conditions in the financial services industry, changes in law,
governmental policies and regulations, and rapidly changing technology affecting financial
services.
The Company does not undertake, and specifically disclaims any obligation, to publicly revise any
forward-looking statements to reflect events or circumstances after the date of such statements or
to reflect the occurrence of anticipated or unanticipated events.
FINANCIAL CONDITION
Total assets were $320.2 million at September 30, 2006, compared to $321.0 million at December
31, 2005, representing a decrease of $762,000 or 0.2%. Cash and cash equivalents decreased $6.1
million, or 36.7%, during the nine-month period ending September 30, 2006, due to a $4.3 million
decrease in cash and due from banks and a $1.7 million decrease in Federal funds sold. Securities
decreased $8.7 million or 10.8% during the first nine months of 2006 primarily due to maturities
and principal repayments. Net loans increased $14.7 million, or 6.9%, while deposits decreased
$5.8 million, or 2.3%, during the nine-month period. Short-term borrowings of Federal funds
purchased, securities sold under repurchase agreement and Federal Home Loan Bank borrowings
increased $10.0 million during the period as a liquidity source to cover loan demand as well as
repayments of other borrowings.
Net loans increased $14.7 million, or 6.9%, during the nine-month period ended September 30, 2006.
This increase was due to a combination of increased loan demand and production within the Companys
market area. The increase in balances were concentrated in commercial loans of $7.9 million,
mortgage loans of $6.0 million and home equity lines of credit of $1.2 million, with small declines
in consumer credit balances. The allowance for loan losses amounted to $2,537,000, or 1.10% of
total loans at September 30, 2006 compared to $2,445,000 or 1.14% of total loans at December 31,
2005.
10.
CSB BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The decrease in the allowance for loan losses as a percentage of total loans is largely due to the
$14.7 million increase in the loan portfolio during the period. The components of the change
in the allowance for loan losses during the nine-month period ended September 30, 2006, included a
provision of $222,000 and net loan charge-offs of $130,000. Loans past due more than 90 days and
still accruing interest, and loans placed on nonaccrual status, aggregated $1,431,000, or 0.62% of
total loans at September 30, 2006, compared to $1,241,000 or 0.58% of total loans at December 31,
2005.
The ratio of net loans to deposits was 91.1%, compared to 83.2% at December 31, 2005. The increase
in this ratio is due to loan growth coupled with deposit shrinkage experienced during the nine
months ended September 30, 2006.
The Company had net unrealized losses of $991,000 within its securities portfolio at September 30,
2006, compared to net unrealized losses of $883,000 at December 31, 2005. Management has
considered industry analyst reports, sector credit reports and the volatility within the bond
market in concluding that the gross unrealized losses of $1,148,000 within the portfolio as of
September 30, 2006, were primarily the result of customary and expected fluctuations in the bond
market. As a result, all security impairments as of September 30, 2006, are considered temporary.
The decrease in other borrowings resulted from the repayment of a $5 million maturing advance from
the Federal Home Loan Bank (FHLB). Other liquidity sources, including securities sold under
repurchase agreements increased $10.0 million as the Company expanded its cash management products
to customers.
Total shareholders equity amounted to $34.6 million, or 10.8%, of total assets, at September 30,
2006, compared to $35.2 million, or 11.0% of total assets, at December 31, 2005. The decrease in
shareholders equity during the nine months ended September 30, 2006 was due to purchases of $1.6
million of treasury shares, an increase in unrealized losses on available-for-sale securities, net
of tax, of $71,000, and dividends declared of $1.2 million partially offset by net income of
$2,264,000. The Company and its subsidiary bank met all regulatory capital requirements at
September 30, 2006.
RESULTS OF OPERATIONS
Three months ended September 30, 2006 and 2005
For the quarter ended September 30, 2006, the Company recorded net income of $814,000, or $0.32 per
share, as compared to net income of $689,000, or $0.26 per share for the quarter ended September
30, 2005. The 124,000 increase in net income for the quarter was principally due to an $80,000
increase in net interest income, a $138,000 increase in other income and a $5,000 decrease in other
expenses. These gains were partially offset by a $4,000 increase in the provision for loan losses
and a $95,000 increase in the federal income tax provision.
Interest income for the quarter ended September 30, 2006, was $5,156,000, representing a $684,000
increase, or 15.3%, compared to the same period in 2005. This increase was primarily due to an
increase in loan volume and interest rates. Interest expense for the quarter ended September 30,
2006 was $1,862,000, an increase of $604,000, or 48.0%, from the same period in 2005. The increase
in interest expense occurred due to an increase in average rates paid on all interest-bearing
liabilities as the Federal Reserve Board continued to increase interest rates during the first half
of 2006. Additionally, customers shifted funds from lower yielding deposits to higher yielding
time deposits and repurchase agreements.
11.
CSB BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The provision for loan losses for the quarter ended September 30, 2006, was $75,000, compared to a
$71,000 provision for the same quarter in 2005. The provision for loan losses is determined based
on managements calculation of the adequacy of the allowance for loan losses, which includes
provisions for classified loans, as well as for the remainder of the portfolio based on historical
data, including past charge-offs, and current economic trends.
Non-interest income for the quarter ended September 30, 2006, was $676,000, an increase of
$138,000, or 25.7%, compared to the same quarter in 2005. This increase was primarily due to
increases in the Companys core deposit service charge income of $95,000 and fee increases of
$23,000 resulting from increasing assets under management in the Trust and Brokerage divisions over
the same period in 2005.
Non-interest expenses for the quarter ended September 30, 2006, decreased $5,000, or 0.2%, compared
to the third quarter of 2005. This decrease was due primarily to decreases in equipment,
professional and all other operating expenses.
Federal income tax expense increased $95,000, or 33.6% for the quarter ended September 30, 2006 as
compared to the third quarter of 2005. The provision for income taxes was $378,000 (effective rate
of 31.7%) for the three months ended September 30, 2006, compared to $283,000 (effective rate of
29.1%) for the three months ended September 30, 2005. The increase in the effective tax rate
resulted from a decrease in tax-exempt interest income as a portion of total income before income
taxes.
Nine months ended September 30, 2006 and 2005
Net income for the nine months ending September 30, 2006, was $2,264,000, or $0.89 per share, as
compared to $1,970,000 or $0.74 per share during the same period in 2005. Return on average assets
and return on average equity were .95% and 8.69%, respectively, for the nine-month period of 2006,
compared to .84% and 7.24%, respectively for 2005.
Comparative net income increased because of a $690,000 increase in net interest income, and a
$107,000 increase in non-interest income and a reduction of $61,000 in the provision for loan
losses as compared to the same period in 2005. The improvements in net income were partially
offset by a $300,000 increase in other expenses and by a $264,000 increase in federal income tax
expense for the nine month period ended September 30, 2006 as compared to the same period in 2005.
Interest income for the nine months ended September 30, 2006, was $14,871,000 an increase of
$2,206,000 or 17.4% from the same period in 2005. Interest income on loans increased $1,737,000,
or 16.4%, for the nine months ended September 30, 2006, as compared to the same period in 2005.
This increase was primarily due to the combination of an increase of 100 basis points on average
loan rates and an increase of $1.5 million in average loan balances. Interest income on securities
increased $511,000, or 24.8%, as average investment balances increased $5.8 million.
Interest expense increased $1,516,000 to $5,010,000 for the nine months ended September 30, 2006,
compared to the nine months ended September 30, 2005. Interest expense on deposits increased
$915,000, or 30.9%, from the same period as last year, while interest expense on other borrowings
increased $601,000 or 113.8%. The increase in interest expense was caused by higher rates on all
interest bearing deposit accounts and short-term borrowings, as the Federal Reserve Board increased
rates seventeen times from mid 2004 to mid 2006, with four increases occurring during the first
half of 2006.
12.
CSB BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Net interest income was $9,861,000 for the nine months ended September 30, 2006, an increase of
7.5% from the same period last year. The net interest margin improved by 18 basis points for the
nine-month period ended September 30, 2006, to 4.46%, from 4.28% for the same period in 2005.
The provision for loan losses was $222,000 during the first nine months of 2006, compared to
$283,000 in the same nine-month period of 2005. The provision for loan losses is determined based
on managements calculation of the adequacy of the allowance for loan losses, which includes
provisions for classified loans, as well as for the remainder of the portfolio based on historical
data, including past charge-offs, and current economic trends.
Non-interest income increased $107,000, or 5.7%, during the nine months ended September 30,
2006, as compared to the same period in 2005. The increase in non-interest income was primarily
due to an increase of $301,000 in service charges on deposit accounts. The increase in deposit fees
were a result of consumer and small business customer use of fee-based products, primarily an
overdraft privilege program that was implemented during the fourth quarter of 2005. The increases
were partially offset by a decrease of $247,000 on sale of securities in 2005.
Non-interest expenses increased $300,000, or 3.7%, for the nine months ended September 30, 2006,
compared to the same period in 2005. Salaries and employee benefits increased $286,000, or 6.8%,
as a result of increased staffing, as well as employee benefit cost increases. Professional and
director fees increased $24,000 or 4.9%, primarily a result of the third party costs of the
overdraft privilege program and the use of a third-party consultant to review executive and
director compensation and benefit programs. Other expense includes a pre-tax charge of $237,000
during the first nine months of 2006 from an isolated irregularity regarding cash assets. The
irregularity was discovered, recorded and reported during the second quarter reporting period and
remains the subject of an ongoing investigation. The Companys insurance against this type of loss
carries a $50,000 deductible, and a loss claim is pending.
Federal income tax expense increased 34.2% for the nine-month period ended September 30, 2006 as
compared to the same period in 2005. The provision for income taxes was $1,035,000 (effective rate
of 31.4%) for the nine months ended September 30, 2006, compared to $771,000 (effective rate of
28.1%) for the nine months ended September 30, 2005. The increase in the effective tax rate
resulted from a decrease in tax-exempt interest income as a portion of total income before income
taxes.
CAPITAL RESOURCES
The Federal Reserve Board (FRB) has established risk-based capital guidelines that must be observed
by financial holding companies and banks. Failure to meet specified minimum capital requirements
could result in regulatory actions by the Federal Reserve or Ohio Division of Financial
Institutions that could have a material effect on the Companys financial condition or results of
operations. Management believes there were no material changes to Capital Resources as presented in
CSB Bancorps annual report on Form 10-K for the year ended December 31, 2005, and as of September
30, 2006 the holding company and its bank meet all capital adequacy requirements to which they are
subject.
LIQUIDITY
Liquidity refers to the Companys ability to generate sufficient cash to fund current loan demand,
meet deposit withdrawals, pay operating expenses and meet other obligations. The Companys primary
sources of liquidity are cash and cash equivalents, which totaled $10.5 million at September 30,
2006, a
13.
CSB BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
decrease of $6.1 million from $16.6 million at December 31, 2005. Net income, securities
available-for-sale, and loan repayments also serve as sources of liquidity. Cash and cash
equivalents and estimated principal payment and securities maturing within one year represent 8.5%
of total assets as of September
30, 2006 compared to 7.7% of total assets at year-end 2005. Other sources of liquidity include,
but are not limited to, purchase of federal funds, advances from the FHLB, adjustments of interest
rates to attract deposits, and borrowing at the Federal Reserve discount window. Management
believes that its sources of liquidity are adequate to meet both short and long-term liquidity
needs of the Company.
OFF-BALANCE SHEET ARRANGEMENTS
We do not have any off-balance sheet arrangements (as such term is defined in applicable Securities
and Exchange Commission rules) that are reasonably likely to have a current or future material
effect on our financial condition, results of operations, liquidity, capital expenditures or
capital resources.
CONTRACTUAL OBLIGATIONS
During the first nine months of 2006, the Companys contractual obligations have not changed
materially from those discussed in the Companys Annual Report of Form 10-K for the year ended
December 31, 2005. On October 5, 2006 the Company announced plans, pending regulatory approval, to
open a new banking center in March 2007 near Orrville, Ohio
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In February 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial
Accounting (FAS) No. 155, Accounting for Certain Hybrid Instruments, as an amendment of FASB
Statements No. 133 and 140. FAS No. 155 allows financial instruments that have embedded
derivatives to be accounted for as a whole (eliminating the need to bifurcate the derivative from
its host) if the holder elects to account for the whole instrument on a fair value basis. This
statement is effective for all financial instruments acquired or issued after the beginning of an
entitys first fiscal year that begins after September 15, 2006. The adoption of this standard is
not expected to have a material effect on the Companys results of operations or financial
position.
In March 2006, the FASB issued FAS No. 156, Accounting for Servicing of Financial Assets. This
Statement, which is an amendment to FAS No. 140, will simplify the accounting for servicing assets
and liabilities, such as those common with mortgage securitization activities. Specifically, FAS
No. 156 addresses the recognition and measurement of separately recognized servicing assets and
liabilities and provides an approach to simplify efforts to obtain hedge-like (offset) accounting.
FAS No. 156 also clarifies when an obligation to service financial assets should be separately
recognized as a servicing asset or a servicing liability, requires that a separately recognized
servicing asset or servicing liability be initially measured at fair value, if practicable, and
permits an entity with a separately recognized servicing asset or servicing liability to choose
either of the amortization or fair value methods for subsequent measurement. The provisions of FAS
No. 156 are effective as of the beginning of the first fiscal year that begins after September 15,
2006. The adoption of this standard is not expected to have a material effect on the Companys
results of operations or financial position.
In September 2006, the FASB issued FAS No. 157, Fair Value Measurements, which provides enhanced
guidance for using fair value to measure assets and liabilities. The standard applies whenever
other
14.
CSB BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RECENLY ISSUED ACCOUNTING PRONOUNCEMENTS-continued
standards require or permit assets or liabilities to be measured at fair value. The Standard does
not expand the use of fair value in any new circumstances. FAS No. 157 is effective for financial
statements issued for fiscal years beginning after November 15, 2007 and interim periods within
those fiscal years. Early adoption is permitted. The adoption of this standard is not expected to
have a material effect on the Companys results of operations or financial position.
In September 2006, the FASB issued FAS No. 158, Employers Accounting for Defined Benefit
Pension and Other Post Retirement Plans, an amendment of FASB Statements No. 87, 88, 106 and
132(R). FAS No. 158 requires that a company recognize the overfunded or underfunded status of its
defined benefit post retirement plans (other than multiemployer plans) as an asset or liability in
its statement of financial position and that it recognize changes in the funded status in the year
in which the changes occur through other comprehensive income. FAS No. 158 also requires the
measurement of defined benefit plan assets and obligations as of the fiscal year end, in addition
to footnote disclosures. FAS No. 158 is effective for fiscal years ending after December 15, 2006.
The Company is currently evaluating the impact the adoption of the standard will have on the
Companys financial position.
In June 2006, the FASB issued FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in
Income Taxes. FIN 48 is an interpretation of FAS No. 109, Accounting for Income Taxes, and it seeks
to reduce the diversity in practice associated with certain aspects of measurement and recognition
in accounting for income taxes. In addition, FIN No. 48 requires expanded disclosure with respect
to the uncertainty in income taxes and is effective for fiscal years beginning after December 15,
2006. The Company is currently evaluating the impact the adoption of the standard will have on the
Companys results of operations.
In September 2006, the SEC issued Staff Accounting Bulletin No. 108 (SAB 108), Considering the
Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial
Statements, providing guidance on quantifying financial statement misstatement and implementation
when first applying this guidance. Under SAB No. 108, companies should evaluate a misstatement
based on its impact on the current year income statement, as well as the cumulative effect of
correcting such misstatements that existed in prior years existing in the current years ending
balance sheet. SAB 108 is effective for fiscal years ending after November 15, 2006. The Company
is currently evaluating the impact the adoption of the standard will have on the Companys results
of operations.
In September 2006, the FASB reached consensus on the guidance provided by Emerging Issues Task
Force Issue 06-4 (EITF 06-4), Accounting for Deferred Compensation and Postretirement Benefit
Aspects of Endorsement Split-Dollar Life Insurance Arrangements. The guidance is applicable to
endorsement split-dollar life insurance arrangements, whereby the employer owns and controls the
insurance policy, that are associated with a postretirement benefit. EITF 06-4 requires that for a
split-dollar life insurance arrangement within the scope of the Issue, an employer should recognize
a liability for future benefits in accordance with FAS No. 106 (if, in substance, a postretirement
benefit plan exists) or Accounting Principles Board Opinion No. 12 (if the arrangement is, in
substance, an individual deferred compensation contract) based on the substantive agreement with
the employee. EITF 06-4 is effective for fiscal years beginning after December 15, 2007. The
Company is currently evaluating the impact the adoption of the standard will have on the Companys
results of operations or financial condition.
15.
CSB BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RECENLY ISSUED ACCOUNTING PRONOUNCEMENTS-continued
In September 2006, the FASB reached consensus on the guidance provided by Emerging Issues Task
Force Issue 06-5(EITF 06-5), Accounting for Purchases of Life InsuranceDetermining the Amount
That Could Be Realized in Accordance with FASB Technical Bulletin No. 85-4, Accounting for
Purchases of Life Insurance. EITF 06-5 states that a policyholder should consider any additional
amounts included in the contractual terms of the insurance policy other than the cash surrender
value in determining the amount that could be realized under the insurance contract. EITF 06-5
also states that a policyholder should determine the amount that could be realized under the life
insurance contract assuming the surrender of an individual-life by individual-life policy (or
certificate by certificate in a group policy). EITF 06-5 is effective for fiscal years beginning
after December 15, 2006. The Company is currently evaluating the impact the adoption of the
standard will have on the Companys results of operations or financial condition.
ITEM 3 QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in the quantitative and qualitative disclosures about
market risks as of September 30, 2006, from that presented in the Companys Annual Report on Form
10-K for the fiscal year ended December 31, 2005. Management performs a quarterly analysis of the
Companys interest rate risk. All positions are currently within the Companys board-approved
policy.
The following table presents an analysis of the estimated sensitivity of the Companys annual net
interest income to sudden and sustained 100 basis point changes in market interest rates at
September 30, 2006 and December 31, 2005:
September 30, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in |
|
|
|
|
|
|
Interest Rates |
|
Net Interest |
|
Dollar |
|
Percentage |
(basis points) |
|
Income |
|
Change |
|
Change |
(Dollars in Thousands) |
+200
|
|
$ |
13,942 |
|
|
$ |
654 |
|
|
|
4.9 |
% |
+100
|
|
|
13,550 |
|
|
|
263 |
|
|
|
2.0 |
|
0
|
|
|
13,288 |
|
|
|
0 |
|
|
|
0.0 |
|
-100
|
|
|
13,065 |
|
|
|
(223 |
) |
|
|
(1.7 |
) |
-200
|
|
|
12,703 |
|
|
|
(585 |
) |
|
|
(4.4 |
) |
December 31, 2005
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in |
|
|
|
|
|
|
Interest Rates |
|
Net Interest |
|
Dollar |
|
Percentage |
(basis points) |
|
Income |
|
Change |
|
Change |
(Dollars in Thousands) |
+200
|
|
$ |
15,042 |
|
|
$ |
1,198 |
|
|
|
8.7 |
% |
+100
|
|
|
14,387 |
|
|
|
544 |
|
|
|
3.9 |
|
0
|
|
|
13,844 |
|
|
|
0 |
|
|
|
0.0 |
|
-100
|
|
|
13,383 |
|
|
|
(461 |
) |
|
|
(3.3 |
) |
-200
|
|
|
12,741 |
|
|
|
(1,103 |
) |
|
|
(8.0 |
) |
16.
CSB BANCORP, INC.
ITEM 4 CONTROLS AND PROCEDURES
With the participation of our management, including our Chief Executive Officer and Chief Financial
Officer, we have evaluated the effectiveness of our disclosure controls and procedures (as defined
in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of
the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation,
our Chief Executive Officer and Chief Financial Officer have concluded that:
(a) information required to be disclosed by the Company in this Quarterly Report on Form 10-Q would
be accumulated and communicated to the Companys management, including its Chief Executive Officer
and Chief Financial Officer, as appropriate, to allow timely decisions regarding required
disclosure;
(b) information required to be disclosed by the Company in this Quarterly Report on Form 10-Q would
be recorded, processed, summarized and reported within the time periods specified in the SECs
rules and forms; and
(c) the Companys disclosure controls and procedures are effective as of the end of the period
covered by this Quarterly Report on Form 10-Q to ensure that material information relating to the
Company and its consolidated subsidiary is made known to them, particularly during the period for
which our periodic reports, including this Quarterly Report on Form 10-Q, are being prepared.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There were no changes during the period covered by this Quarterly Report on Form 10-Q in our
internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act)
that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.
17.
CSB BANCORP, INC.
FORM 10-Q
Quarter ended September 30, 2006
PART II OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS
There are no matters required to be reported under this item.
ITEM 1A RISK FACTORS
There were no material changes to the Risk Factors
described in Item 1A in the Companys Annual Report on Form 10-K
for the period ended December 31, 2005.
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
There are no matters required to be reported under this item.
Issuer Purchase of Equity Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Number of |
|
Maximum Number |
|
|
Total Number of |
|
Average Price |
|
Shares Purchased as |
|
of Shares that May |
|
|
Shares |
|
Paid Per |
|
Part of Publicly |
|
Yet be Purchased |
Period |
|
Purchased |
|
Share |
|
Announced Plans |
|
Under the Plan |
July 1, 2006 to
July 31, 2006 |
|
|
5,172 |
|
|
$ |
20.40 |
|
|
|
5,172 |
|
|
|
134,409 |
|
|
August 1, 2006 to
August 31, 2006 |
|
|
15,086 |
|
|
$ |
20.50 |
|
|
|
15,086 |
|
|
|
119,004 |
|
|
September 1, 2006 to
September 30, 2006 |
|
None |
|
None |
|
None |
|
|
119,004 |
|
On July 7, 2005 CSB Bancorp, Inc. filed Form 8-k with the Securities and Exchange
Commission announcing that its Board of Directors approved a Stock Repurchase Program
authorizing the repurchase of up to 10% of the Companys common shares then outstanding.
Repurchases will be made from time to time as market and business conditions warrant, in
the open market, through block purchases and in negotiated private transactions.
Item 3 Defaults Upon Senior Securities:
There are no matters required to be reported under this item.
Item 4 Submission of Matters to a Vote of Security Holders:
There are no matters required to be reported under this item.
Item 5 Other Information:
There are no matters required to be reported under this item.
18.
CSB BANCORP, INC.
FORM 10-Q
Quarter ended September 30, 2006
PART II OTHER INFORMATION
Item 6 Exhibits:
|
|
|
Exhibit |
|
|
Number |
|
Description of Document |
|
|
|
11
|
|
Statement Regarding Computation of Per Share Earnings
(reference is hereby made to Consolidated Statements of Income on page 4
hereof.) |
|
|
|
31.1
|
|
Rule 13a-14(a)/15d-14(a) CEOs Certification |
|
|
|
31.2
|
|
Rule 13a-14(a)/15d-14(a) CFOs Certification |
|
|
|
32.1
|
|
Section 1350 CEOs Certification |
|
|
|
32.2
|
|
Section 1350 CFOs Certification |
19.
CSB BANCORP, INC.
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, thereunto duly authorized.
|
|
|
|
|
|
|
CSB BANCORP, INC.
(Registrant) |
|
|
|
|
|
|
|
Date: November 13, 2006
|
|
/s/ Eddie L. Steiner
Eddie L. Steiner
|
|
|
|
|
President |
|
|
|
|
Chief Executive Officer |
|
|
|
|
|
|
|
Date: November 13, 2006
|
|
/s/ Paula J. Meiler
Paula J. Meiler
|
|
|
|
|
Senior Vice President |
|
|
|
|
Chief Financial Officer |
|
|
20.
CSB BANCORP, INC.
Index to Exhibits
|
|
|
|
|
Exhibit |
|
|
|
Sequential |
Number |
|
Description of Document |
|
Page |
|
|
|
|
|
11
|
|
Statement Regarding Computation of Per Share
Earnings (reference is hereby made to Consolidated Statements of
Income on page 4 hereof.)
|
|
|
|
|
|
|
|
31.1
|
|
Rule 13a-14(a)/15d-14(a) CEOs Certification |
|
|
|
|
|
|
|
31.2
|
|
Rule 13a-14(a)/15d-14(a) CFOs Certification |
|
|
|
|
|
|
|
32.1
|
|
Section 1350 CEOs Certification |
|
|
|
|
|
|
|
32.2
|
|
Section 1350 CFOs Certification |
|
|
21.