CSB Bancorp, Inc. announced second quarter 2026 net income of $4,735,000, or $1.80 per basic and diluted share, compared to $3,727,000, or $1.41 per basic and diluted share, for the same period in 2025. For the six-month period ended June 30, 2026, net income totaled $9,179,000 compared to $7,343,000 for the same period last year, an increase of 25%.

Second Quarter 2026 Financial Highlights

The following table summarizes key performance metrics for the quarters ended June 30, 2026 and June 30, 2025:

Annualized returns on average common equity (ROE) and average assets (ROA) for the quarter were 14.48% and 1.48%, respectively, compared with 12.48% and 1.23% for the second quarter of 2025. For the six-month period ended June 30, 2026, ROE and ROA were 14.26% and 1.45%, as compared to 12.53% and 1.22% for the comparable period in 2025.

Pre-Provision Net Revenue (PPNR), a non-GAAP measure, totaled $6.5 million during the quarter, an increase of $1.2 million, or 24%, from the prior year's second quarter.

Net Interest Income and Margin

Net interest income increased $1.5 million, or 15%, in the second quarter of 2026 compared to the same period in 2025. The fully taxable equivalent (FTE) net interest margin was 3.92% for second quarter 2026, compared to 3.61% in the second quarter of 2025. FTE net interest income increased $1.5 million, or 15%, with a $65 million increase in average earning assets as well as a 23 basis point increase in the yield on assets.

Loan interest income including fees increased $1.5 million, or 13%, during second quarter 2026 compared to the same quarter in 2025. Loan yields in second quarter 2026 averaged 6.05%, an increase of 13 basis points from the 2025 second quarter average of 5.92%. Securities yields for second quarter 2026 averaged 2.59% compared to 2.27% in the second quarter of 2025, while overnight funds averaged 3.71% compared to 4.47% in the second quarter of 2025. Interest expense declined $35 thousand, or 1%, during second quarter 2026 compared to second quarter 2025. The cost to fund gross earning assets for the second quarter of 2026 declined to 1.17% compared to 1.25% for the second quarter of 2025.

Noninterest Income and Expense

Noninterest income increased $175 thousand, or 10%, compared to the second quarter of 2025. The increase was primarily the result of:

• A $49 thousand increase in debit card interchange fees
• A $42 thousand increase in credit card fees
• A $37 thousand increase in earnings on bank owned life insurance
• A $28 thousand increase in service charges on deposit accounts

Noninterest expense increased $465 thousand, or 7%, from second quarter 2025. Salary and employee benefits increased $328 thousand, or 8%, compared to the prior year quarter, with increases in base salaries and benefits, partially due to increased headcount as the company reduced vacancies and added several new positions supporting growth. Software expense increased $83 thousand, or 19%, primarily due to new loan production software. The Company's second quarter efficiency ratio decreased to 53.06% compared to 56.62% in the prior year.

Asset Quality and Credit

The allowance for expected credit losses (ACL) amounted to $13.5 million, or 1.56% of total loans, on June 30, 2026, compared to $8.3 million or 1.05% of total loans on June 30, 2025. The increase in the ACL is primarily related to an individually evaluated loan relationship reported in prior periods. The allowance for credit losses on off-balance sheet commitments on June 30, 2026 was $583 thousand, compared to a June 30, 2025 balance of $493 thousand.

Nonperforming loans were $7.3 million, or 0.84%, of total loans on June 30, 2026, compared to $1.4 million, or 0.17% of total loans, a year ago. Net loan charge-offs recognized during second quarter 2026 were $28 thousand, compared to second quarter 2025 net loan charge-offs of $362 thousand.

Deposits, Capital, and Shareholder Returns

Average deposit balances increased on a quarter over prior year quarter comparison by $52 million, or 5%. For second quarter 2026, the average cost of deposits amounted to 1.25%, compared to 1.32% for second quarter 2025. Shareholders' equity totaled $133 million on June 30, 2026, with 2.6 million common shares outstanding. The average equity to assets ratio amounted to 10.21% for the quarter ended June 30, 2026. The Company declared a second quarter dividend of $0.43 per share, producing an annualized yield of 2.4% based on the June 30, 2026 closing price of $72.00.

CSB Bancorp is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $1.3 billion as of June 30, 2026. CSB provides a complete range of banking and other financial services to consumers and businesses through its wholly owned subsidiary, The Commercial and Savings Bank, with sixteen banking centers in Holmes, Wayne, Tuscarawas, and Stark counties and Trust offices located in Millersburg, North Canton, and Wooster, and a loan production office located in Medina, Ohio.

CSB Bank will host an earnings call on July 22, 2026, at 5:30 PM IST to discuss its unaudited financial results for the quarter ended June 30, 2026. The conference call will provide insights into the bank's performance for Q1 FY27, with management addressing institutional investors and analysts during the session.

The earnings call follows the intimation sent to BSE Limited and the National Stock Exchange of India Ltd. pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The unaudited financial results and the related investor presentation will be released to the stock exchanges and subsequently made available on the bank's website.

Management Participants

The discussion will feature key members of the bank's leadership team:

Investors and analysts are requested to pre-register for the conference call using the provided Zoom link. The audio recording of the call will be made available on the bank's website under the 'Earnings Call' section within the prescribed time. For further information regarding the conference call, participants may contact Mr. Shivaji Thapliyal.