CSB Bancorp, Inc.
For the period ended Jun 30, 2025. Filed Aug 11, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 11, 2025
CSBBStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0000950170-25-070022
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-11.
0000950170-25-106490
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 44 previous paragraphs and 52 current paragraphs.
23 unchanged; 19 reworded; 9 added; 1 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 5 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Noninterest income increased $36 thousand, or 2%, compared to the second quarter of 2024. The increase was primarily the result of a $35 thousand increase in earnings on bank owned life insurance, a $29 thousand increase in unrealized gain on equity securities, and a $22 thousand increase in debit card interchange fees. These increases were partially offset by decreases of $19 thousand in loss on sale of other assets, $16 thousand decrease in other income, and a $15 thousand decrease in trust services.
Current report
RESULTS OF OPERATIONS
Current report
Six months ended June 30, 2025, and 2024
Current report
For the six months ended June 30, 2025, and 2024, the Company recorded net income of $7.3 million and $4.5 million and $2.78 and $1.71 per share, respectively. The $3 million increase in net income for the six-month period was primarily the result of the provision for credit losses and off-balance sheet commitments of $1 million compared to the provision for credit losses in the prior year period of $4 million, and a $2 million increase to net interest income. The increase to net income was partially offset by an increase in noninterest expense of $1 million and a decrease of $40 thousand in noninterest income.
Current report
The federal income tax provision was $740 thousand higher during the six-month period in 2025 than in 2024. Return on average assets and return on average equity were 1.22% and 12.53%, respectively, for the six months ended June 30, 2025, compared to 0.79% and 8.35%, respectively for the same period in 2024.
Current report
Interest income for the six months ended June 30, 2025, was $27 million representing a $2 million increase, or 9%, compared to the same period in 2024. This increase was primarily due to volume and yield increases on loans for the period ended June 30, 2025, as compared to the same period in 2024. Interest expense for the six months ended June 30, 2025, was $7 million, an increase of $197 thousand, or 3%, from the same period in 2024.
Current report
Noninterest income for the six months ended June 30, 2025, was $3.5 million, a decrease of $40 thousand, or 1%, compared to the same period in 2024. Earnings on bank owned life insurance policies increased $63 thousand for the period. Unrealized gain on equity securities increased $35 thousand, or 121%. Debit card interchange income increased $30 thousand, or 3%. The gain on the sale of mortgage loans to the secondary market increased $21 thousand to $130 thousand for the six months ended June 30, 2025, as improved pricing for smaller balance mortgage loans attracted buyers and some mortgage loan refinancing. Service charges on deposit accounts increased $21 thousand, or 4%, compared to the same period in 2024 primarily from increases in monthly service fees. Fees from trust and brokerage services decreased $131 thousand for the period due to a one time fee collected in the first quarter of 2024. Credit card fee income decreased $21 thousand, or 7%.
Current report
Noninterest expenses for the six months ended June 30, 2025, increased $1.4 million, or 12%, compared to the same period in 2024. Salaries and employee benefits increased $1.1 million, or 17%, a result of increased incentive accruals and filled open positions. Debit card expense increased $27 thousand, or 7%, primarily due to processing increases. Professional and director fees increased $36 thousand for the six months ended June 30, 2025, as compared to the same period in 2024. Financial institutions tax increased $31 thousand, or 7%, based on increased capital. Occupancy and equipment expenses increased $131 thousand over the same period in 2024 with an increase in maintenance and snow removal expense. FDIC assessment increased $21 thousand, or 8%.
Current report
Federal income tax expense increased $740 thousand, or 71%, for the six months ended June 30, 2025, as compared to the same period in 2024. The provision for income taxes was $2 million (effective rate of 19.5%) for the six months ended June 30, 2025, compared to $1 million (effective rate of 18.6%) for the same period ended 2024.
Removed paragraphs (1)
Previous report
Noninterest income decreased $76 thousand, or 4%, compared to first quarter of 2024. The decrease was primarily the result of a $116 thousand decrease in trust services, partially offset by a $28 thousand increase in the earnings on bank owned life insurance.
Reworded paragraphs (19)
Previous wording
The following management’s discussion and analysis focuses on the consolidated financial condition of the Company on March 31, 2025 as compared to December 31, 2024, and the consolidated results of operations for the three months ended March 31, 2025 compared to the same period in 2024. 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 condensed Consolidated Financial Statements and related footnotes contained in Part I, Item 1 of this Quarterly Report.
Current wording
The following management’s discussion and analysis focuses on the consolidated financial condition of the Company on June 30, 2025 as compared to December 31, 2024, and the consolidated results of operations for the three and six months ended June 30, 2025 compared to the same period in 2024. 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 condensed Consolidated Financial Statements and related footnotes contained in Part I, Item 1 of this Quarterly Report.
Previous wording
Total assets increased $27 million to $1.22 billion at March 31, 2025 compared to $1.19 billion at December 31, 2024. During the three months ended March 31, 2025, securities decreased $10 million, net loans increased $23 million, and cash and cash equivalents increased $15 million. Deposits and short-term borrowings increased $25 million.
Current wording
Total assets increased $46 million to $1.23 billion at June 30, 2025 compared to $1.19 billion at December 31, 2024. During the six months ended June 30, 2025, securities decreased $25 million, net loans increased $50 million, and cash and cash equivalents increased $22 million. Deposits and short-term borrowings increased $41 million.
Previous wording
Net loans increased $23 million, or 3%, as commercial and commercial real estate loans increased $15 million, or 3%, compared to December 31, 2024 and residential real estate loans increased $2 million, or 1%, from December 31, 2024. Construction loans increased $6 million, or 9%, from December 31, 2024. Consumer refinance activity remains slow on mortgage loans, while home purchase activity remains stable despite limited inventory, and home equity line balances increased by $1 million. Residential mortgage loan originations, including home equity lines, for the three months ended March 31, 2025 totaled $11 million, an increase from $9 million in mortgage originations during the three months ended March 31, 2024. Mortgage loan originations sold into the secondary market increased slightly to $1.5 million from $1.2 million, respectively during the three months ended March 31, 2025 and March 31, 2024. The Bank originates and sells primarily fixed rate thirty-year mortgages into the secondary market.
Current wording
Net loans increased $50 million, or 7%, as commercial and commercial real estate loans increased $52 million, or 12%, compared to December 31, 2024 and residential real estate loans increased $5 million, or 3%, from December 31, 2024. Construction loans decreased $10 million, or 15%, from December 31, 2024. Consumer refinance activity remains slow on mortgage loans, while home purchase activity remains stable despite limited inventory, and home equity line balances increased by $3 million. Residential mortgage loan originations, including home equity lines, for the six months ended June 30, 2025 totaled $32 million, an increase from $22 million in mortgage originations during the six months ended June 30, 2024. Mortgage loan originations sold into the secondary market increased slightly to $4 million from $3 million, respectively during the six months ended June 30, 2025 and June 30, 2024. The Bank originates and sells primarily fixed rate thirty-year mortgages into the secondary market.
Previous wording
The increase in the allowance was primarily due to the volume increase in loans originated. Net charge-offs were $29 thousand, or an annualized 0.02% of average loans, in the current three-month period compared to net charge-offs of $74 thousand, or 0.04% of average loans in the year-ago three-month period. At March 31, 2025, the allowance for credit losses to total loans was 1.05%. We believe the allowance level is appropriate given the level of problem loans and composition of the overall loan portfolio in the current economic environment.
Current wording
The allowance for credit losses for loans increased $656 thousand from December 31, 2024 to $8 million. The increase in the allowance was primarily due to the volume increase in loans originated. Net charge-offs were $391 thousand, or an annualized 0.10% of average loans, in the current six-month period compared to net charge-offs of $320 thousand, or 0.09% of average loans in the year-ago six-month period. At June 30, 2025, the allowance for credit losses to total loans was 1.05%. We believe the allowance level is appropriate given the level of problem loans and composition of the overall loan portfolio in the current economic environment.
Previous wording
Nonperforming loans decreased $109 thousand to $1.6 million, or 0.21%, of total loans from $1.7 million, or 0.23% of total loans, on December 31, 2024. For the three months ended March 31, 2025, $224 thousand in loans were placed on nonaccrual status, $22 thousand in paydowns were received, and $27 thousand in loans were charged-off due to non-payment.
Current wording
Nonperforming loans decreased $348 thousand to $1.4 million, or 0.17%, of total loans from $1.7 million, or 0.23% of total loans, on December 31, 2024. For the six months ended June 30, 2025, $437 thousand in loans were placed on nonaccrual status, $284 thousand in paydowns were received, and $370 thousand in loans were charged-off due to non-payment.
Previous wording
The ratio of gross loans to deposits was 71% at March 31, 2025 and December 31, 2024.
Current wording
The ratio of gross loans to deposits was 72% and 71% at June 30, 2025 and December 31, 2024.
Previous wording
The Company has no exposure to government-sponsored enterprise preferred stocks, collateralized debt obligations, or trust preferred securities. Management has considered industry analyst reports, sector credit reports, and the volatility within the bond market in concluding that the gross unrealized losses of $35 million within the available-for-sale and held-to-maturity portfolios as of March 31, 2025, was primarily the result of current market yields compared to the yields at the time the investments were purchased by the Company and not due to credit quality. As a result, all embedded security losses on March 31, 2025, are considered temporary and no allowance for credit loss is necessary.
Current wording
The Company has no exposure to government-sponsored enterprise preferred stocks, collateralized debt obligations, or trust preferred securities. Management has considered industry analyst reports, sector credit reports, and the volatility within the bond market in concluding that the gross unrealized losses of $32 million within the available-for-sale and held-to-maturity portfolios as of June 30, 2025, was primarily the result of current market yields compared to the yields at the time the investments were purchased by the Company and not due to credit quality. As a result, all embedded security losses on June 30, 2025, are considered temporary and no allowance for credit loss is necessary.
Previous wording
The weighted average life of total debt securities was 5.44 years at March 31, 2025 as compared to 5.14 years at December 31, 2024. If interest rates declined 100 basis points, the weighted average life was estimated to fall to 5.16 years at March 31, 2025. If interest rates rose 100 basis points the weighted average life would be expected to increase to 5.70 years at March 31, 2025.
Current wording
The weighted average life of total debt securities was 5.45 years at June 30, 2025 as compared to 5.14 years at December 31, 2024. If interest rates declined 100 basis points, the weighted average life was estimated to fall to 5.13 years at June 30, 2025. If interest rates rose 100 basis points the weighted average life would be expected to increase to 5.73 years at June 30, 2025.
Previous wording
Deposits increased $26 million, or 2%, from December 31, 2024 with noninterest-bearing deposits increasing approximately $2 million, or less than 1%, and interest-bearing deposit accounts increasing approximately $24 million, or 3%. Total deposits as of March 31, 2025 are $1.07 billion, or 6%, above March 31, 2024 deposit balances. On a year over year comparison, increases were recognized in noninterest-bearing demand deposits of $5 million, savings accounts of $2 million, money market accounts of $9 million, and time deposits of $50 million. Decreases were recognized in interest bearing demand accounts of $6 million. Deposits have increased as customers move excess liquid funds into money market accounts and time certificates of deposit to take advantage of the increased interest rates. The estimated amount of uninsured deposits was $262 million, $244 million, and $249 million as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively.
Current wording
Deposits increased $44 million, or 4%, from December 31, 2024 with noninterest-bearing deposits increasing approximately $1 million, or less than 1%, and interest-bearing deposit accounts increasing approximately $43 million, or 6%. Total deposits as of June 30, 2025 are $1.1 billion, or 6%, above June 30, 2024 deposit balances. On a year over year comparison, increases were recognized in noninterest-bearing demand deposits of $5 million, savings accounts of $5 million, interest bearing demand accounts of $22 million, and time deposits of $34 million. Decreases were recognized in money market accounts of $244 thousand. Deposits have increased as customers move funds into interest bearing demand accounts and time certificates of deposit to take advantage of higher interest rates in those products. The estimated amount of uninsured deposits was $266 million, $244 million, and $249 million as of June 30, 2025, December 31, 2024, and June 30, 2024, respectively.
Previous wording
Short-term borrowings consisting of overnight repurchase agreements with retail customers decreased $702 thousand, or 3%, to $25 million at March 31, 2025 as compared to December 31, 2024 as customers moved money into higher interest rate money market and time deposit accounts. Other borrowings decreased $30 thousand as the Company repaid FHLB advances.
Current wording
Short-term borrowings consisting of overnight repurchase agreements with retail customers decreased $3 million, or 13%, to $22 million at June 30, 2025 as compared to December 31, 2024 as customers moved money into higher interest rate money market and time deposit accounts. Other borrowings decreased $301 thousand as the Company repaid FHLB advances.
Previous wording
Total shareholders’ equity amounted to $118 million, or 9.7%, of total assets at March 31, 2025, an increase of $3.5 million, or 3%, from $115 million at December 31, 2024. The increase in shareholders’ equity during the three months ended March 31, 2025 was due to net income of $3.6 million, other comprehensive income of $1.3 million, less cash dividends of $1.1 million, and treasury stock repurchases of $328 thousand. Total accumulated other comprehensive loss ("AOCL") decreased during the three months ended March 31, 2025 due to decreases in interest rates and improvements in pricing in government agency and corporate bonds as AFS securities are marked to fair value. This remaining unrealized loss in securities is temporary and is adjusted monthly for additional interest rate fluctuations, principal paydowns, calls, and maturities. The Company and the Bank met all regulatory capital requirements at March 31, 2025 as shown in the Capital Resources section of this report.
Current wording
Total shareholders’ equity amounted to $122 million, or 9.8%, of total assets at June 30, 2025, an increase of $6.8 million, or 6%, from $115 million at December 31, 2024. The increase in shareholders’ equity during the six months ended June 30, 2025 was due to net income of $7.3 million, other comprehensive income of $2.1 million, less cash dividends of $2.1 million, and treasury stock repurchases of $436 thousand. Total accumulated other comprehensive loss ("AOCL") decreased during the six months ended June 30, 2025 due to decreases in interest rates and improvements in pricing in government agency and corporate bonds as AFS securities are marked to fair value. This remaining unrealized loss in securities is temporary and is adjusted monthly for additional interest rate fluctuations, principal paydowns, calls, and maturities. The Company and the Bank met all regulatory capital requirements at June 30, 2025 as shown in the Capital Resources section of this report.
Previous wording
For the quarters ended March 31, 2025 and 2024, the Company recorded net income of $3.6 million and $2.9 million and $1.37 and $1.10 per share, respectively. The $683 thousand increase in net income for the period was primarily the result of the provision for credit losses and off-balance sheet commitments of $402 thousand compared to the provision for credit losses in the prior year period of $1.2 million. The increase of $533 thousand in net interest income partially offset by a $76 thousand decrease in noninterest income and a $339 thousand increase in noninterest expenses. The federal income tax provision increased $185 thousand. Pre-provision net revenue ("PPNR"), (a non-GAAP measure), totaled $4.9 million for the quarter ended March 31, 2025, an increase of $118 thousand, or 2.5%, from the prior year's first quarter.
Current wording
For the quarters ended June 30, 2025 and 2024, the Company recorded net income of $3.7 million and $1.6 million and $1.41 and $0.61 per share, respectively. The $2.1 million increase in net income for the period was primarily the result of a reduced provision for credit losses and off-balance sheet commitments of $614 thousand compared to the provision for credit losses in the prior year period of $2.9 million. Additionally, an increase of $1.4 million in net interest income and $36 thousand increase in noninterest income is partially offset by a $1.1 million increase in noninterest expenses. The federal income tax provision increased $555 thousand. Pre-provision net revenue ("PPNR"), (a non-GAAP measure), totaled $5.2 million for the quarter ended June 30, 2025, an increase of $392 thousand, or 8.1%, from the prior year's second quarter.
Previous wording
Return on average assets and return on average equity were 1.22% and 12.58%, respectively, for the three-month period of 2025, compared to 1.02% and 10.84%, respectively for the same quarter in 2024.
Current wording
Return on average assets and return on average equity were 1.23% and 12.48%, respectively, for the three-month period of 2025, compared to 0.56% and 5.89%, respectively for the same quarter in 2024.
Previous wording
Interest income for the quarter ended March 31, 2025, was $13.3 million representing a $725 thousand, or 6% increase, compared to the same period in 2024. This increase was primarily due to higher average balances of loans and interest-earning deposits in other banks. These increases were partially offset by the volume decreases in taxable securities to the comparable period. Rates on average interest-earning deposits in other banks decreased 89 basis points, while loan rates rose 1 basis point, and taxable securities' interest rates increased 15 basis points for the quarter ended March 31, 2025 as compared to the same period in 2024. Interest expense for the quarter ended March 31, 2025 was $3.6 million, an increase of $192 thousand, or 6%, from the same quarter in 2024. The increase in interest expense occurred primarily due to volume increases in money market and time deposit accounts as well as the increase in rates on time deposit accounts for the quarter ended March 31, 2025.
Current wording
Interest income for the quarter ended June 30, 2025, was $13.9 million representing a $1.4 million, or 11% increase, compared to the same period in 2024. This increase was primarily due to higher average balances of loans and interest-earning deposits in other banks. These increases were partially offset by the volume decreases in taxable securities over the comparable period. Rates on average interest-earning deposits in other banks decreased 111 basis points, while loan rates rose 18 basis points, and taxable securities' interest rates increased 8 basis points for the quarter ended June 30, 2025 as compared to the same period in 2024. Interest expense for the quarter ended June 30, 2025 was $3.6 million, an increase of $5 thousand, or less than 1%, from the same quarter in 2024. The increase in interest expense occurred primarily due to volume increases in time deposit accounts during the quarter ended June 30, 2025.
Previous wording
For the quarter ended March 31, 2025, the bank recognized net charge-offs of $29 thousand, compared to $74 thousand net charge-offs for the same quarter in 2024. The provision for credit losses on loans in the current quarter of $408 thousand, compared to a provision of $603 thousand in the same quarter ended 2024. The company recorded a $6 thousand recovery for credit loss expense on off-balance commitments in the first quarter 2025 compared to a $549 thousand provision in the first quarter of 2024. The quarter increase results primarily from the increase in loan volume during first quarter 2025.
Current wording
For the quarter ended June 30, 2025, the bank recognized net charge-offs of $362 thousand, compared to $246 thousand net charge-offs for the same quarter in 2024. The provision for credit losses on loans in the current quarter of $639 thousand, compared to a provision of $3.7 million in the same quarter ended 2024. The company recorded a $25 thousand recovery for credit loss expense on off-balance commitments in the second quarter 2025 compared to a $808 thousand recovery in the same quarter of 2024. The quarter increase results primarily from the increase in loan volume during second quarter 2025.
Previous wording
Economic indicators reflect a leveling off in residential real estate prices and increases in unemployment rates. The provision for credit losses is determined based on management’s calculation of the adequacy of the allowance for credit 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.
Current wording
Economic indicators reflect somewhat flat business activity with uncertainty related to trade policies and national unemployment rates just above 4%. The provision for credit losses is determined based on management’s calculation of the adequacy of the allowance for credit 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.
Previous wording
Noninterest expense increased $339 thousand, or 6%, from first quarter 2024. Salary and employee benefit costs increased $228 thousand, or 7%, compared to the prior year quarter with increases in base salary, insurance, and social security taxes. Occupancy expense costs increased $73 thousand, or 26%, with increases in snow removal costs. Professional and directors’ fees increased $81 thousand, or 24%, state financial institutions tax increased $14 thousand, or 6%, due to the increase in capital. Debit card expenses increased $22 thousand, or 12%, primarily with increases in processing. Software expense decreased $25 thousand, or 6%, and equipment expense decreased $18 thousand, or 8%. The Company’s first quarter efficiency ratio increased to 56.8% compared to 56.0% in the prior year.
Current wording
Noninterest expense increased $1.1 million, or 18%, from the second quarter 2024. Salary and employee benefit costs increased $865 thousand, or 28%, compared to the prior year quarter with increases in base salary, retirement, and incentive compensation. Occupancy expense costs increased $58 thousand, or 20%, with increases in heating system and elevator repairs. Software expense increased $27 thousand, or 7%, state financial institutions tax increased $17 thousand, or 8%, due to the increase in capital. Professional and director fees decreased $45 thousand, or 10%. The Company’s second quarter efficiency ratio increased to 56.6% compared to 54.2% in the prior year.
Previous wording
Federal income tax expense increased $185 thousand, or 27%, for the quarter ended March 31, 2025 as compared to the first quarter 2024. The provision for income taxes was $878 thousand (effective rate of 19.5%) for the quarter ended March 31, 2025, compared to $693 thousand (effective rate of 19.1%) for the same quarter ended 2024.
Current wording
Federal income tax expense increased $555 thousand, or 159%, for the quarter ended June 30, 2025 as compared to the second quarter 2024. The provision for income taxes was $903 thousand (effective rate of 19.5%) for the quarter ended June 30, 2025, compared to $348 thousand (effective rate of 17.7%) for the same quarter ended 2024.
Previous wording
The Company maintained a strong capital position with tangible common equity to tangible assets of 9.4% at March 31, 2025 compared with 9.3% at December 31, 2024.
Current wording
The Company maintained a strong capital position with tangible common equity to tangible assets of 9.5% at June 30, 2025 compared with 9.3% at December 31, 2024.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, the provision for credit losses and off-balance sheet commitments was $1 million, compared to $4 million for the same period in 2024. For more discussion see Results of Operations, three months. The provision for credit losses is determined based on management’s calculation of the adequacy of the allowance for credit 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.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The allowance for credit losses for loans increased $379 thousand from December 31, 2024 to $8 million.