MILLERSBURG -- CSB Bancorp, Inc. (CSBB) announced fourth quarter 2012 net income of $1.1 million or $.41 per basic and diluted share, as compared to $820 thousand or $.30 per basic and diluted share for the same period in 2011.
Annualized returns on average common equity ("ROE") and average assets ("ROA") for the quarter were 8.50 percent and 0.77 percent, respectively, compared with 6.58 percent and 0.61 percent for the fourth quarter of 2011.
For the full year of 2012, the Company reported net income of $4.5 million, or $1.66 per basic and diluted share, as compared to $3.7 million, or $1.35 per basic and diluted share in 2011. Full year ROE and ROA were 8.85 percent and 0.80 percent, respectively, compared to 7.57 percent and 0.78 percent in 2011.
Eddie Steiner, president and CEO commented, "Net interest income increased for the eighth consecutive quarter, and non-interest income increased for the fourth consecutive quarter. While margins remain historically tight, our ability to attract and grow customer relationships has been instrumental in driving our revenue stream. We plan to continue this focus on building customer relationships as we do not anticipate significant margin expansion as long as interest rates remain at or near historic lows."
Revenue totaled $5.7 million for the fourth quarter of 2012, a 9.5 percent increase from the prior-year fourth quarter. Full year revenue of $22.1 million reflects a $2 million, or 9.9%, increase as compared to full year 2011.
Non-interest expense amounted to $3.8 million during the quarter, an increase of $70 thousand, or 2 percent from fourth quarter 2011. For the full year ended Dec. 31, 2012, non-interest expense increased $841 thousand, or 6 percent versus 2011, with the majority of the change attributable to the company's increased operating size from the fourth quarter 2011 acquisition of banking centers in Wooster.
The company's fourth quarter efficiency ratio amounted to 63.6 percent as compared to 71.5 percent for the same quarter in the prior year. The full year 2012 efficiency ratio of 64.8% compares to 68.1 percent for the full prior year.
Federal income tax provision was $475 thousand for fourth quarter 2012, compared to $324 thousand for the same quarter in 2011. Full year income tax of $2.0 million for 2012 was 24% higher than prior year and reflects an effective tax rate of 30.4 percent for current year versus 30.3% in 2011.
Average total assets during the quarter amounted to $575 million, an increase of $45 million, or 9 percent above the same quarter of the prior year. Average loan balances of $357 million were $37 million, or 11 percent above prior year fourth quarter, while average securities balances of $133 million increased $17 million, or 15 percent as compared to fourth quarter 2011.
Total assets amounted to $587 million on Dec. 31, 2012, up $36 million, or 6 percent from Dec. 31, 2011. Net loans increased to $360 million, up $40 million, or 12 percent from the prior year-end, while securities balances of $135 million were $6 million, or 5 percent higher than year ago balances.
Average commercial loan balances for the quarter, including commercial real estate, increased $30 million, or 14% above year ago levels. Average residential mortgage balances increased by $5 million, or 7 percent during the year. The increase of in-house mortgage balances was the result of the bank originating and retaining 15 year fixed rate mortgages. Average home equity balances increased $2 million, or 5 percent, and average consumer credit balances decreased $91 thousand, or 1 percent versus the same quarter of the prior year.
Net charge-offs for the quarter and the full year were $287 thousand and $325 thousand, respectively. Net charge-offs equated to 0.09 percent of average loans during 2012 as compared to 0.28 percent during 2011.
Nonperforming assets totaled $3.4 million or 0.92 percent of total loans plus other real estate at Dec. 31, 2012, compared to $3.5 million or 1.08 percent at the prior year-end. Delinquent loan balances as of year-end 2012 amounted to 1.25 percent of total loans as compared to 2.04 percent at the end of 2011.
The company funded $206 thousand in loan loss provision during the fourth quarter and the allowance for loan losses amounted to 1.26 percent of total loans on Dec. 31, 2012. The ratio of the allowance for loan losses to nonperforming loans stood at 137 percent at the end of 2012 as compared to 117 percent at year end 2011.
Commenting on the company's credit quality, Steiner said, "Our level of nonperforming assets have declined fairly consistently since peaking during first quarter 2010, with continued improvement again noted this past quarter. Delinquencies within the loan portfolio at the end of 2012 are at our lowest quarter quarter-end levels reported since 2008."
Average deposit balances grew by $8 million, or 2 percent, from the prior linked quarter. Total average deposits of $464 million for the quarter were 10 percent above the prior year's fourth quarter average.
Deposit balances totaled $475 million at year-end, an increase of $32 million, or 7 percent from the prior year-end. Within the deposit category, average non interest-bearing account balances for the fourth quarter increased by $16 million, or 19 percent above the same period in the prior year. Average interest-bearing checking, money market and traditional savings balances increased $36 million, or 21 percent from year ago levels, while average time deposit balances decreased $10 million, or 6 percent during the year. In addition to the changes in average deposit balances, the average balance of securities sold under repurchase agreement during the fourth quarter grew by $6 million, or 17 percent above the average for the same period in the prior year. Repurchase agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts.
Shareholders' equity totaled $52.4 million on Dec. 31, 2012 with 2.7 million common shares outstanding. The tangible equity to assets ratio amounted to 8.1 percent on Dec. 31, 2012, as compared to 8.0 percent on Dec. 31, 2011. The company declared a common dividend of $.18 per share during the quarter. Based on the Dec. 31, 2012 closing stock price of $17 per share, the company's annual dividend yield approximates 4.2 percent.