CSB Bancorp's Net Income Soars 49% on Strong Loan Growth

TL;DR

**CSBB is crushing it with loan growth and surging profits, making it a solid buy in regional banking.**

AI Summary

CSB Bancorp, Inc. reported a significant increase in net income for the nine months ended September 30, 2025, reaching $11.494 million, a 49.41% jump from $7.693 million in the same period of 2024. This was driven by a robust 13.47% increase in total interest and dividend income to $41.923 million, primarily from a 11.40% rise in loan interest income to $34.489 million. Net interest income after credit loss expense surged by 30.61% to $29.447 million. The company's total assets grew to $1.248 billion as of September 30, 2025, up from $1.191 billion at December 31, 2024, largely due to a 9.82% increase in net loans to $801.328 million. Total deposits also increased by 4.95% to $1.096 billion. However, the company saw a decrease in total securities by 7.22% to $307.611 million and an increase in total noninterest expenses by 11.50% to $20.492 million for the nine-month period. The allowance for credit losses on loans increased to $8.720 million from $7.595 million, reflecting potential future credit risks.

Why It Matters

CSB Bancorp's impressive 49.41% net income growth and 9.82% loan portfolio expansion signal strong operational performance and a healthy local economy, which is positive for investors seeking regional bank exposure. The increase in deposits by 4.95% demonstrates customer confidence and a stable funding base, crucial in a competitive banking landscape. For employees, this growth could mean job security and potential expansion opportunities. Customers benefit from a robust bank capable of supporting lending needs. In the broader market, CSBB's performance indicates resilience in the regional banking sector, potentially outperforming peers facing tighter margins and increased regulatory scrutiny.

Risk Assessment

Risk Level: medium — While net income and loan growth are strong, the company's total securities portfolio decreased by 7.22% to $307.611 million, and it holds $6.128 million in gross unrealized losses on available-for-sale securities, with 94 securities in a continuous loss position for 12 months or more. This indicates exposure to interest rate risk and potential future impairment charges if rates continue to rise or remain elevated, despite management's belief in full recovery.

Analyst Insight

Investors should consider CSBB for its strong earnings growth and expanding loan portfolio, but monitor its securities portfolio for continued unrealized losses. A deeper dive into the credit quality of the growing loan book is warranted to ensure the allowance for credit losses adequately covers potential defaults.

Financial Highlights

revenue

$41.923M

total Assets

$1.248B

net Income

$11.494M

eps

$4.35

revenue Growth

+13.47%

Revenue Breakdown

Key Numbers

• $11.494M — Net Income (Increased 49.41% for the nine months ended September 30, 2025, compared to $7.693 million in 2024.)
• $1.248B — Total Assets (Increased from $1.191 billion at December 31, 2024, to September 30, 2025.)
• $801.328M — Net Loans (Increased 9.82% from $730.046 million at December 31, 2024.)
• $1.096B — Total Deposits (Increased 4.95% from $1.044 billion at December 31, 2024.)
• $307.611M — Total Securities (Decreased 7.22% from $331.529 million at December 31, 2024.)
• $6.128M — Gross Unrealized Losses (On available-for-sale securities as of September 30, 2025.)
• $1.57 — Basic and Diluted Net Earnings Per Share (For the three months ended September 30, 2025, up from $1.18 in 2024.)
• $4.35 — Basic and Diluted Net Earnings Per Share (For the nine months ended September 30, 2025, up from $2.89 in 2024.)
• $8.720M — Allowance for Credit Losses (Increased from $7.595 million at December 31, 2024.)
• 94 — Securities in Unrealized Loss Position (For 12 months or more as of September 30, 2025.)

Key Players & Entities

• CSB Bancorp, Inc. (company) — Registrant and parent company
• The Commercial and Savings Bank (company) — Wholly-owned subsidiary of CSB Bancorp, Inc.
• CSB Investment Services, LLC (company) — Wholly-owned subsidiary of CSB Bancorp, Inc.
• Securities and Exchange Commission (regulator) — Regulatory body for filing
• FASB (regulator) — Issued accounting pronouncements
• Federal Home Loan Bank of Cincinnati (company) — Investment in restricted stock
• Federal Reserve Bank (company) — Investment in restricted stock
• Bloomberg (company) — Financial news organization

FAQ

Risk Factors

• Securities with Unrealized Losses [medium — financial]: As of September 30, 2025, CSB Bancorp had $29.507 million in gross unrealized losses on its total securities portfolio. Of this, $6.128 million pertains to available-for-sale securities. A significant portion, $6.113 million (94 securities), has been in an unrealized loss position for 12 months or more, primarily due to interest rate increases affecting fixed-rate debt securities. Management believes full recovery is likely, but this concentration of unrealized losses represents a potential market risk.
• Allowance for Credit Losses [medium — financial]: The allowance for credit losses on loans increased to $8.720 million from $7.595 million at December 31, 2024. This increase reflects management's anticipation of potential future credit risks within the loan portfolio, indicating a cautious outlook on asset quality.
• Increase in Noninterest Expenses [low — operational]: Total noninterest expenses rose by 11.50% to $20.492 million for the nine-month period ended September 30, 2025. This increase could impact profitability if not managed effectively or if revenue growth does not keep pace.
• Interest Rate Sensitivity [medium — market]: The unrealized losses on securities, particularly fixed-rate debt securities, are directly attributed to interest rate increases. This highlights the company's sensitivity to fluctuations in interest rates, which can impact the fair value of its investment portfolio.

Industry Context

CSB Bancorp operates within the community banking sector, characterized by a focus on local markets and relationship-based lending. The industry is currently navigating a landscape of rising interest rates, which impacts loan demand, net interest margins, and the valuation of securities portfolios. Competition remains robust from larger regional banks and fintech companies, necessitating a strong focus on operational efficiency and customer service.

Regulatory Implications

As a financial institution, CSB Bancorp is subject to stringent regulatory oversight from bodies like the Federal Reserve and the FDIC. Changes in capital requirements, liquidity rules, and consumer protection regulations can significantly impact operations and profitability. The company's management of its securities portfolio and allowance for credit losses are key areas of regulatory scrutiny.

What Investors Should Do

1. Monitor noninterest expense trends
2. Assess the impact of unrealized security losses
3. Evaluate loan growth sustainability

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported significant net income growth of 49.41% to $11.494 million, driven by a 13.47% increase in total interest and dividend income.
• 2025-09-30: As of September 30, 2025 — Total assets reached $1.248 billion, with net loans growing 9.82% to $801.328 million and total deposits increasing by 4.95% to $1.096 billion.
• 2024-12-31: As of December 31, 2024 — Provided the comparative baseline for asset and liability growth, with total assets at $1.191 billion and net loans at $730.046 million.

Glossary

Allowance for Credit Losses (ACL)

An estimate of the amount of uncollectible loans in a company's loan portfolio. It is a contra-asset account that reduces the carrying value of loans on the balance sheet. (An increase in ACL suggests management's concern about potential loan defaults, impacting the net value of the company's loan assets.)

Available-for-sale (AFS) securities

Debt and equity securities that are not classified as held-to-maturity or trading securities. They are reported at fair value on the balance sheet, with unrealized gains and losses recorded in other comprehensive income. (Unrealized losses on AFS securities, like the $6.128 million reported by CSB, can impact equity and indicate market risk.)

Held-to-maturity (HTM) securities

Debt securities that the entity has the intent and ability to hold until maturity. They are reported at amortized cost on the balance sheet. (CSB holds a significant portfolio of HTM securities ($190.027 million as of Sep 30, 2025), which are less susceptible to short-term market fluctuations but still carry credit risk.)

Net Interest Income

The difference between interest income generated by a financial institution (from loans and investments) and interest expense paid out (on deposits and borrowings). (A key driver of profitability for banks, CSB saw a substantial 30.61% increase in net interest income after credit loss expense.)

Noninterest Expense

Expenses incurred by a financial institution that are not directly related to interest income, such as salaries, rent, and technology costs. (An increase in noninterest expense, as seen with CSB's 11.50% rise, can put pressure on net income if not offset by revenue growth.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, CSB Bancorp has demonstrated robust financial performance. Net income surged by 49.41%, largely propelled by a 13.47% increase in total interest and dividend income, with loan interest income showing a healthy 11.40% rise. This growth in revenue outpaced the 11.50% increase in noninterest expenses. While total assets and loans have grown, the company has reduced its total securities portfolio by 7.22%, and the allowance for credit losses has been increased, indicating a proactive stance on potential credit risks amidst a changing market.

Key Financial Figures

• $6.25 — ge on which registered Common Shares, $6.25 par value CSBB OTCID Indicate by

Filing Documents

• csbb-20250930.htm (10-Q) — 5815KB
• csbb-ex31_1.htm (EX-31.1) — 14KB
• csbb-ex31_2.htm (EX-31.2) — 15KB
• csbb-ex32_1.htm (EX-32.1) — 7KB
• csbb-ex32_2.htm (EX-32.2) — 7KB
• 0001193125-25-277449.txt ( ) — 24771KB
• csbb-20250930.xsd (EX-101.SCH) — 1222KB
• csbb-20250930_htm.xml (XML) — 8051KB

- Financial Information

Part I - Financial Information Page ITEM 1 –

FINANCIAL STATEMENTS (Unaudited)

FINANCIAL STATEMENTS (Unaudited) Consolidated Balance Sheets 3 Consolidated Statements of Income 4 Consolidated Statements of Comprehensive Income 5 Consolidated Statements of Changes in Shareholders' Equity 6 Condensed Consolidated Statements of Cash Flows 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 ITEM 2 –

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 29 ITEM 3 –

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 37 ITEM 4 –

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 38

- Other Information

Part II - Other Information ITEM 1 –

Legal Proceedings

Legal Proceedings 39 ITEM 1A –

Risk Factors

Risk Factors 39 ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds 39 ITEM 3 – Defaults upon Senior Securities 39 ITEM 4 – Mine Safety Disclosures 39 ITEM 5 – Other Information 39 ITEM 6 – Exhibits 40

Signatures

Signatures 41 2 CSB BANCORP, INC.

– FINANCI AL INFORMATION

PART I – FINANCI AL INFORMATION

– FINAN CIAL STATEMENTS

ITEM 1. – FINAN CIAL STATEMENTS CONSOLIDATED B ALANCE SHEETS (Unaudited) September 30, December 31, (Dollars in thousands, except per share data) 2025 2024 ASSETS Cash and cash equivalents Cash and due from banks $ 20,069 $ 21,287 Interest-earning deposits in other banks 60,408 52,222 Federal funds sold 330 — Total cash and cash equivalents 80,807 73,509 Securities Available-for-sale, at fair value 115,795 125,434 Held-to-maturity; fair value of $ 166,654 in 2025 and $ 172,603 in 2024 ($ 0 credit loss allowance for 2025 and 2024) 190,027 204,309 Equity securities 269 266 Restricted stock, at cost 1,520 1,520 Total securities 307,611 331,529 Loans held for sale 384 283 Loans 810,048 737,641 Less allowance for credit losses 8,720 7,595 Net loans 801,328 730,046 Premises and equipment, net 13,716 14,069 Bank-owned life insurance 30,899 28,225 Goodwill 4,728 4,728 Accrued interest receivable and other assets 8,884 9,111 TOTAL ASSETS $ 1,248,357 $ 1,191,500 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Deposits Noninterest-bearing $ 277,838 $ 281,358 Interest-bearing 818,758 763,529 Total deposits 1,096,596 1,044,887 Short-term borrowings 20,304 25,683 Other borrowings 941 1,266 Allowance for credit losses on off-balance sheet commitments 514 524 Accrued interest payable and other liabilities 4,812 4,305 TOTAL LIABILITIES 1,123,167 1,076,665 SHAREHOLDERS' EQUITY Common stock, $ 6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares; outstanding 2,632,498 shares in 2025 and 2,650,089 in 2024 18,629 18,629 Additional paid-in capital 9,815 9,815 Retained earnings 111,380 103,105 Treasury stock at cost: 348,104 shares in 2025 and 330,513 shares in 2024 ( 9,020 ) ( 8,294 ) Accumulated other comprehensive loss ( 5,614 ) ( 8,420 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) N OTE 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 (the "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 Company's financial position at September 30, 2025, 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 ("GAAP") have been omitted. The Annual Report for CSB for the year ended December 31, 2024, contains Consolidated Financial Statements and related footnote disclosures, which should be read in conjunction with the accompanying condensed Consolidated Financial Statements. The results of operations for the period ended September 30, 2025 are not necessarily indicative of the operating results for the full year or any future interim period. Certain items in the prior-year financial statements were reclassified to conform to the current-year presentation. Such reclassifications had no effect on net income or shareholders' equity. USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS In preparing the Consolidated Financial Statements, in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Balance Sheets and reported amou

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 2 – SECURITIES Securities consisted of the following on September 30, 2025 and December 31, 2024: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value September 30, 2025 Available-for-sale U.S. Treasury securities $ 5,015 $ 5 $ — $ — $ 5,020 U.S. Government agencies 6,000 — ( 118 ) — 5,882 Mortgage-backed securities of government agencies 75,631 228 ( 5,065 ) — 70,794 Asset-backed securities of government agencies 368 — ( 9 ) — 359 14,520 — ( 435 ) — 14,085 Corporate bonds 20,137 19 ( 501 ) — 19,655 Total available-for-sale 121,671 252 ( 6,128 ) — 115,795 Held-to-maturity U.S. Treasury securities 7,888 — ( 364 ) — 7,524 Mortgage-backed securities of government agencies 179,644 6 ( 22,906 ) — 156,744 2,495 — ( 109 ) — 2,386 Total held-to-maturity 190,027 6 ( 23,379 ) — 166,654 Equity securities 185 84 — — 269 Restricted stock 1,520 — — — 1,520 Total securities $ 313,403 $ 342 $ ( 29,507 ) $ — $ 284,238 December 31, 2024 Available-for-sale U.S. Treasury securities $ 13,487 $ 8 $ ( 81 ) $ — $ 13,414 U.S. Government agencies 6,000 — ( 302 ) — 5,698 Mortgage-backed securities of government agencies 69,746 30 ( 7,078 ) — 62,698 Asset-backed securities of government agencies 404 — ( 6 ) — 398 15,051 — ( 805 ) — 14,246 Corporate bonds 30,048 5 ( 1,073 ) — 28,980 Total available-for-sale 134,736 43 ( 9,345 ) — 125,434 Held-to-maturity U.S. Treasury securities 7,854 — ( 621 ) — 7,233 Mortgage-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 2 – SECURITIES (continued) The amortized cost and fair value of debt securities on September 30, 2025, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized cost Fair value Available-for-sale Due in one year or less $ 7,507 $ 7,490 Due after one through five years 28,807 28,410 Due after five through ten years 14,109 13,196 Due after ten years 71,248 66,699 Total debt securities available-for-sale $ 121,671 $ 115,795 Held-to-maturity Due in one year or less $ 2,498 $ 2,492 Due after one through five years 3,305 3,193 Due after five through ten years 4,665 4,310 Due after ten years 179,559 156,659 Total debt securities held-to-maturity $ 190,027 $ 166,654 Securities with a fair value of approximately $ 129 million were pledged on September 30, 2025 and December 31, 2024, respectively, to secure public deposits, as well as other deposits and borrowings as required or permitted by law. Restricted stock primarily consists of investments in Federal Home Loan Bank of Cincinnati (FHLB) and Federal Reserve Bank stock. The Bank's investment in FHLB stock amounted to approximately $ 1.0 million on September 30, 2025 and December 31, 2024 . Federal Reserve Bank stock was $ 471 thousand on September 30, 2025 and December 31, 2024. There were no proceeds from sales of securities for the three and nine-month periods ended September 30, 2025 and 2024. All gains and losses recognized on equity securities during the three and nine-month periods were unrealized. 10 CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 2 – SECURITIES (continued) The following table presents gross unrealized losses and fair value of securities available-for-sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, on September 30, 2025 and December 31, 2024: Securities in a continuous unrealized loss position Less than 12 months 12 months or more Total (Dollars in thousands) Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value September 30, 2025 Available-for-sale U.S. Government agencies $ — $ — $ ( 118 ) $ 5,882 $ ( 118 ) $ 5,882 Mortgage-backed securities of government agencies ( 15 ) 1,816 ( 5,050 ) 39,836 ( 5,065 ) 41,652 Asset-backed securities of government agencies — — ( 9 ) 359 ( 9 ) 359 — — ( 435 ) 11,280 ( 435 ) 11,280 Corporate bonds — — ( 501 ) 15,399 ( 501 ) 15,399 Total temporarily impaired $ ( 15 ) $ 1,816 $ ( 6,113 ) $ 72,756 $ ( 6,128 ) $ 74,572 December 31, 2024 Available-for-sale U.S. Treasury securities $ — $ — $ ( 81 ) $ 8,949 $ ( 81 ) $ 8,949 U.S. Government agencies — — ( 302 ) 5,698 ( 302 ) 5,698 Mortgage-backed securities of government agencies ( 88 ) 12,944 ( 6,990 ) 45,063 ( 7,078 ) 58,007 Asset-backed securities of government agencies — — ( 6 ) 398 ( 6 ) 398 ( 19 ) 1,446 ( 786 ) 12,800 ( 805 ) 14,246 Corporate bonds — — ( 1,073 ) 27,473 ( 1,073 ) 27,473 Total temporarily impaired $ ( 107 ) $ 14,390 $ ( 9,238 ) $ 100,381 $ ( 9,345 ) $ 114,771 There were 98 securities in an unrealized loss posit

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 2 – SECURITIES (continued) The Bank monitors the credit quality of held-to-maturity debt securities primarily through utilizing their credit rating. The Bank monitors the credit rating on a quarterly basis. There are no nonperforming held-to-maturity securities. As of September 30, 2025 , no ACL was required for any held-to-maturity security. The majority of the securities are explicitly or implicitly guaranteed by the United States government, and any estimate of expected credit losses would be insignificant to the Bank. The following table summarizes the amortized cost of held-to maturity debt securities at September 30, 2025 and December 31, 2024, aggregated by credit quality indicator: (Dollars in thousands) U.S. Treasury securities Mortgage- backed securities of government agencies September 30, 2025 Credit rating: AAA / AA / A $ 7,888 $ 179,644 $ 2,495 BBB / BB / B — — — Lower than B — — — Non-rated — — — Total $ 7,888 $ 179,644 $ 2,495 December 31, 2024 Credit rating: AAA / AA / A $ 7,854 $ 193,937 $ 2,518 BBB / BB / B — — — Lower than B — — — Non-rated — — — Total $ 7,854 $ 193,937 $ 2,518 12 CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 3 – LOANS Loans consisted of the following on September 30, 2025 and December 31, 2024: (Dollars in thousands) September 30, 2025 December 31, 2024 Commercial and industrial $ 150,499 $ 144,376 Commercial real estate 245,454 190,514 Commercial lessors of buildings 110,605 101,168 Construction 47,767 64,262 Consumer mortgage 191,677 177,578 Home equity line of credit 50,021 44,971 Consumer installment 9,453 9,645 Consumer indirect 4,667 5,276 Total loans 810,143 737,790 Allowance for credit losses ( 8,720 ) ( 7,595 ) Deferred loan fees, net ( 95 ) ( 149 ) Net Loans $ 801,328 $ 730,046 Loan Origination/Risk Management The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions. Commercial loans are underwritten after evaluating and understanding the borrower's ability to operate profitably and prudently expand its business. Underwriting standards are designed to promote relationship banking rather than transactional banking. The Company's management examines current and occasionally projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers; however, may not be as expected and t

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