CSB Bancorp, Inc. (CSBB)·Q4 2024 Earnings Summary

Executive Summary

• EPS was $0.87, down vs $1.18 in Q3 and $1.38 YoY, driven primarily by an elevated $2.29M provision tied to the ongoing court liquidation of a single commercial lending relationship; net income was $2.319M .
• Pre-provision net revenue rose 8% YoY to $5.135M as net interest income and fees increased and expenses were modestly lower; total revenue was $11.346M (+2.9% YoY full-year PPNR commentary) .
• Asset quality mixed: nonperforming loans at $1.7M (0.23%), net charge-offs were $1.928M (fully attributable to the identified relationship), and allowance was $7.595M (1.03% of loans) .
• Dividend maintained at $0.40/share; equity ended the quarter at $115M and book value per share at $43.33, with NIM (FTE) at 3.33% and efficiency ratio at 54.68% .
• S&P Global Wall Street consensus estimates for Q4 2024 EPS and revenue were unavailable; near-term catalysts include resolution timing and recoveries from the court-supervised liquidation and stabilization of deposit costs .

What Went Well and What Went Wrong

What Went Well

• PPNR increased 8% YoY to $5.135M, supported by a $221k increase in net interest income and a $102k increase in noninterest income, while noninterest expense fell $47k YoY .
• NIM (FTE) held resilient at 3.33% vs 3.36% YoY, with average earning assets up $38M and asset yields +17bps YoY, partially offset by a 25bps higher cost of funds .
• CEO commentary highlighted equity growth (+6.4% to $115M) and that the problematic credit is charged down to less than $1M backed by real estate and cash held by the court receiver, supporting capital strength into 2025 .

What Went Wrong

• Provision expense spiked to $2.29M, up $2.1M YoY, due to the single commercial relationship; net charge-offs were $1.928M vs net recoveries of $5k YoY .
• ROA/ROE compressed (0.76%/7.99%) vs 1.25%/14.22% YoY on higher credit costs despite stable core revenues .
• Deposit cost pressures persisted (avg cost of deposits 1.39% vs 1.16% YoY), reflecting competitive funding dynamics; average noninterest-bearing balances declined YoY as mix shifted toward time deposits .

Financial Results

Interest & Dividend Income Components

Key KPIs

Guidance Changes

No formal revenue, margin, OpEx, OI&E, or tax-rate guidance was provided in Q4 2024 materials. Dividend actions:

Earnings Call Themes & Trends

Note: No Q4 earnings call transcript was available; themes are synthesized across Q2–Q4 press releases.

Management Commentary

• “Overall the loan pipeline was noticeably subdued during fourth quarter as borrowers awaited more clarity on the economy, interest rates, and post-election adjustments in fiscal policy… The large single relationship in court liquidation accounted for over 85% of the Company’s provision expense and has been charged down to less than $1 million comprised of real estate and cash held by the court receiver.” — Eddie Steiner, President & CEO .
• “Total revenue is 2% above the prior year’s nine months and net revenue before provision for credit loss and taxes is 1% ahead on a year to date basis. Margins and efficiency are holding very close to prior year levels…” — Eddie Steiner (Q3 release) .
• “Net interest margins remain pressured… Loan demand has slowed… We expect some deterioration in credit conditions as borrowers contend with the dual effects of inflation and high interest rates.” — Eddie Steiner (Q2 release) .

Q&A Highlights

No Q4 earnings call transcript was available in the company’s filings; no Q&A themes to report [List: earnings-call-transcript search returned none].

Estimates Context

• Wall Street consensus estimates for Q4 2024 EPS and revenue via S&P Global were unavailable at time of analysis; benchmarking to Street was not possible. We will monitor for availability in future updates.
• As context, results were impacted by credit provisioning against the identified commercial relationship, which masks otherwise stable core trends in NIM, revenues, and efficiency .

Key Takeaways for Investors

• Core earnings power stable: NIM (FTE) 3.33% and efficiency 54.68% indicate a steady core franchise despite credit headwinds; PPNR +8% YoY to $5.135M supports underlying earnings capacity .
• Credit event remains the swing factor: Provision $2.29M and net charge-offs $1.928M were concentrated in one commercial relationship; resolution progress (charged down to < $1M; court proceeds ~$413k) reduces tail risk over time .
• Funding costs show signs of plateauing: Avg deposit cost 1.39% vs 1.48% in Q3, while funding to gross earning assets was 1.32%; watch deposit mix shifts and competition into 2025 .
• Balance sheet growth intact: Ending loans up to $737.641M (+5.1% YoY) with average earning assets +$38M YoY; equity $115M and book value/share $43.33 provide capital support .
• Dividend steady at $0.40/share; payout sustainability tied to credit normalization and PPNR trajectory .
• Near-term narrative drivers: timing of court-approved liquidation and potential recoveries, pace of loan demand re-acceleration post-rate clarity, and any movement in deposit costs .
• With Street estimates unavailable, internal trend tracking (PPNR, NIM, provision cadence) is the best lens; expect earnings normalization as the idiosyncratic credit resolves and core margin dynamics stabilize .