CSB Bancorp, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. Total assets increased to $1.21 billion, up from $1.18 billion at the end of 2023, driven by a $32 million rise in cash and cash equivalents, which reached $95.6 million. Total deposits also grew by $43 million, or 4%, to $1.07 billion.

For the three months ended September 30, 2024, net income was $3.1 million, a decrease from $3.5 million in the same period last year. This decline was attributed to a provision for credit losses of $645,000, compared to $13,000 in Q3 2023. Net interest income increased to $9.2 million from $8.8 million, while noninterest income rose to $1.8 million from $1.7 million. However, noninterest expenses also increased by $388,000, leading to a higher efficiency ratio of 58.2%, compared to 57.0% in Q3 2023.

For the nine months ended September 30, 2024, net income totaled $7.7 million, down from $11.1 million in the prior year. The decrease was primarily due to a significant rise in the provision for credit losses, which reached $5 million compared to $286,000 in 2023. Despite this, net interest income increased to $27.3 million from $26.8 million, and noninterest income rose to $5.3 million from $5.0 million.

The company’s loan portfolio showed growth, with total loans increasing to $719.6 million from $701.4 million at the end of 2023. Notably, commercial real estate loans rose to $194.3 million, while consumer mortgage loans increased to $175.1 million. However, commercial and industrial loans decreased to $134.1 million. The allowance for credit losses increased to $7.2 million, reflecting the current economic environment and rising problem loans.

CSB Bancorp's capital ratios remained strong, with a total capital to risk-weighted assets ratio of 16.5% and a tier 1 capital ratio of 15.5%. The company met all capital adequacy requirements as of September 30, 2024.

Market conditions have been challenging, with Ohio's unemployment rate rising to 4.5% in September 2024, up from 3.7% in December 2023. The Federal Reserve's recent rate cuts may impact future earnings, as management continues to monitor interest rate risks closely.