CSB Bancorp, Inc. Reports Third Quarter Earnings

Core Insights - CSB Bancorp, Inc. reported a net income of $4,151,000 for Q3 2025, an increase from $3,145,000 in Q3 2024, reflecting strong financial performance [1] - The company experienced a 49% increase in net income for the nine-month period ending September 30, 2025, totaling $11,494,000 compared to $7,693,000 in the same period last year [1] Financial Performance - Annualized returns on average common equity (ROE) and average assets (ROA) for Q3 2025 were 13.19% and 1.31%, respectively, up from 11.14% and 1.05% in Q3 2024 [2] - Pre-Provision Net Revenue (PPNR) for the quarter was $5.7 million, a 23% increase from the previous year [2] - Net interest income rose by $1.7 million, or 19%, while noninterest income increased by $57,000, or 3% [2] Economic Context - The U.S. economy grew by approximately 3% in Q3 2025, with inflation remaining around 3% [3] - National unemployment is at about 4.5%, with job growth slowing, prompting the Federal Reserve to lower short-term interest rates [3] - The local economy appears stable, with total loan balances up 10% since the beginning of the year, driven by construction and business investments [3] Credit Quality - Provision for credit loss expense decreased by $199,000 from Q3 2024, as nonperforming loans continued to decline [4] - The allowance for credit losses (ACL) was $8.7 million, or 1.08% of total loans, compared to $7.2 million, or 1.00% a year earlier [5] - Nonperforming loans were $746,000, or 0.09% of total loans, down from $3.4 million, or 0.47% a year ago [14] Loan and Deposit Trends - Loan interest income increased by $1.6 million, or 15%, due to an $80 million volume increase in loans [6] - Average deposit balances rose by $52 million, or 5%, with the average cost of deposits decreasing to 1.34% from 1.48% [15] - Average commercial loan balances increased by $63 million, or 13%, while residential mortgage balances rose by $14 million, or 8% [13] Shareholder Information - Shareholders' equity totaled $125 million as of September 30, 2025, with an average equity to assets ratio of 9.96% [16] - The company declared a third-quarter dividend of $0.41 per share, yielding an annualized rate of 3.3% based on the closing price of $49.50 [17] Company Overview - CSB Bancorp, Inc. is a financial holding company based in Millersburg, Ohio, with approximately $1.2 billion in assets as of September 30, 2025 [18]