CSB Bancorp Reports 23.4% Increase in Net Income to $3.6 Million for Q1 2025

CSB Bancorp, Inc. reported a net income of $3.6 million for the first quarter of 2025, reflecting an increase of 23.4% compared to $2.9 million in the same period of 2024. This translates to earnings per share of $1.37, up from $1.10 a year earlier. The growth in profitability was primarily driven by a reduction in the provision for credit losses, which decreased to $402,000 from $1.2 million in the prior year, alongside a $533,000 increase in net interest income. Total interest income rose to $13.3 million, a 6% increase year-over-year, while interest expense also increased by 6% to $3.6 million.

The company's total assets increased by $27 million to $1.22 billion as of March 31, 2025, compared to $1.19 billion at the end of 2024. This growth was supported by a $15 million increase in cash and cash equivalents and a $23 million rise in net loans, which reached $753 million. The loan portfolio saw a 3% increase, with notable growth in commercial and commercial real estate loans, which rose by $15 million. The allowance for credit losses also increased to $8 million, representing 1.05% of total loans, reflecting the company's proactive approach to managing credit risk amid a changing economic environment.

In terms of operational metrics, CSB Bancorp's total deposits increased by $26 million, or 2%, to $1.07 billion, with significant growth in interest-bearing accounts. The bank's noninterest-bearing deposits saw a modest increase of approximately $2 million. The company also reported a decrease in nonperforming loans, which fell to $1.6 million, or 0.21% of total loans, down from $1.7 million at the end of 2024. This improvement in asset quality is indicative of the bank's effective risk management strategies.

Strategically, CSB Bancorp continues to focus on enhancing its product offerings and customer engagement. The company reported an increase in residential mortgage loan originations, totaling $11 million for the quarter, up from $9 million in the same period last year. The bank's management remains optimistic about future growth, citing stable home purchase activity despite limited inventory and a commitment to maintaining a strong capital position, with total shareholders' equity reaching $118 million, or 9.7% of total assets.

Looking ahead, CSB Bancorp anticipates continued growth in its loan portfolio and deposit base, supported by favorable market conditions and strategic initiatives. The company remains vigilant in monitoring economic indicators, including rising unemployment rates and inflation trends, to adapt its strategies accordingly. Management believes that the current allowance for credit losses is appropriate given the composition of the loan portfolio and the overall economic landscape.