CSB Bancorp, Inc. reported net income of $4.987 million for the third quarter of 2026, a 20% increase compared to the same period in 2025. The company reported diluted earnings per share of $1.90 for the quarter, up from $1.57 in the prior year. This performance resulted in record year-to-date earnings of $14.166 million, representing a 23% increase over the first nine months of 2025.
The bank's return on average common equity (ROE) for the quarter was 14.67%, while return on average assets (ROA) was 1.50%. These metrics improved from 13.19% and 1.31%, respectively, in the third quarter of 2025. The company's efficiency ratio decreased to 52.56% from 55.56% in the prior year.
CSB Bancorp attributed the earnings growth to strong net interest income growth and an improved net interest margin. The fully taxable equivalent net interest margin was 3.99% for the third quarter of 2026, compared to 3.67% in the prior year. Average earning assets increased by $72 million, or 6%, primarily due to a $81 million increase in average loans.
Loan balances saw significant growth across several categories. Average commercial loan balances increased by $54 million, or 10%, driven by construction loans and term loans for equipment. Average residential mortgage balances grew by $14 million, or 8%, while home equity lines of credit increased by $13 million. Average deposit balances also rose by $58 million, or 5%, with time deposits accounting for the largest portion of the increase.
Asset quality metrics showed some deterioration compared to the prior year. Nonperforming loans totaled $7.1 million, or 0.80% of total loans, compared to $746 thousand, or 0.09%, a year ago. The increase is attributed to a single commercial relationship previously disclosed by the company. The allowance for expected credit losses (ACL) was $14.1 million, or 1.58% of total loans, up from $8.7 million, or 1.08%, on September 30, 2025. The bank declared a third quarter dividend of $0.45 per share.
