OF OPERATIONS. (form 10-K)



CSB Bancorp, Inc. (the "Firm" or "CSB") was included below the legal guidelines of
the State of Ohio in 1991 and is a registered monetary holding firm. The
Firm's wholly owned subsidiaries are The Industrial and Financial savings Financial institution (the
"Financial institution") and CSB Funding Providers, LLC. The Financial institution is chartered below the legal guidelines
of the State of Ohio and was organized in 1879. The Financial institution is a member of the
Federal Reserve System, with deposits insured by the Federal Deposit Insurance coverage
Company, and its main regulators are the Ohio Division of Monetary
Establishments and the Federal Reserve Board.

The Firm, via the Financial institution, supplies retail and business banking providers
to its clients together with checking and financial savings accounts, time deposits, money
administration, protected deposit amenities, business loans, actual property mortgage
loans, client loans, IRAs, evening depository amenities, and belief and
brokerage providers. Its clients are positioned primarily in Holmes, Stark,
Tuscarawas, Wayne, and parts of surrounding counties in Ohio.

Financial exercise within the Firm's market space declined reasonably within the fourth
quarter of 2022 after stable development earlier within the yr stemming from a continued
restoration following the COVID-19 pandemic financial results of 2020. Demand for
items and providers slowed throughout the fourth quarter 2022 with households
spending extra on requirements and fewer on discretionary gadgets. Provide chain
challenges improved throughout the yr. Client spending has softened on account of
inflation pressures and elevated rates of interest. Reported unemployment ranges
in December 2022 ranged from 2.9% to 4.0% within the 4 main counties served by
the Firm. These ranges elevated from the December 2021 vary of two.0% to three.5%
within the 4 counties served by the Firm. Labor demand remained stable as
competitors for staff has put upward strain on labor prices. The native
housing market continues to be robust with extraordinarily low stock ranges.
Residential building has declined yr over yr with greater rates of interest
as the primary issue lowering demand.

Sure statements contained in Administration's Dialogue and Evaluation of
Monetary Situation and Outcomes of Operations aren't associated to historic
outcomes however are forward-looking statements throughout the which means of the Non-public
Securities Litigation Reform Act of 1995. These statements contain numerous
dangers and uncertainties. Any forward-looking statements made by the Firm
herein and in future studies and statements aren't ensures of future
efficiency. Precise outcomes might differ materially from these in forward-looking
statements due to varied danger components as mentioned on this annual report.
The Firm doesn't undertake, and particularly disclaims, any obligation to
publicly launch the results of any revisions to any forward-looking statements
to replicate the prevalence of unanticipated occasions or circumstances after the
date of such statements.



The next desk set forth sure chosen consolidated monetary

({Dollars} in hundreds, besides per
share knowledge)                              2022              2021              2020              2019              2018
Statements of revenue:
Whole curiosity revenue               $      34,819     $      29,529     $      31,066     $      32,461     $      29,637
Whole curiosity expense                      2,496             2,012             2,913             4,062             2,886
Internet curiosity revenue                        32,323            27,517            28,153            28,399            26,751
Provision (restoration) for mortgage
losses                                       (895 )            (655 )           1,650             1,140             1,316
Internet curiosity revenue after
provision (restoration) for mortgage
losses                                     33,218            28,172            26,503            27,259            25,435
Noninterest revenue                          6,711             7,325             6,935             5,428             4,758
Noninterest expense                        23,393            22,093            20,342            19,769            18,518
Revenue earlier than revenue taxes                 16,536            13,404            13,096            12,918            11,675
Revenue tax provision                        3,223             2,567             2,528             2,504             2,263
Internet revenue                          $      13,313     $      10,837     $      10,568     $      10,414     $       9,412

Per share of widespread inventory:
Primary earnings per share            $        4.91     $        3.97     $        3.85     $        3.80     $        3.43
Diluted earnings per share                   4.91              3.97              3.85              3.80              3.43
Dividends                                    1.30              1.22              1.13              1.08              0.98
E-book worth                                  35.43             35.80             34.23             31.17             27.91
Common fundamental widespread shares
excellent                             2,714,045         2,733,126         2,742,350         2,742,296         2,742,242
Common diluted widespread shares
excellent                             2,714,045         2,733,126         2,742,350         2,742,296         2,742,242

Yr-end balances:
Loans, internet                          $     620,333     $     541,536     $     600,885     $     544,616     $     543,067
Securities                                401,144           311,245           204,184           130,721           110,913
Whole belongings                            1,159,108         1,144,239         1,031,632           818,683           731,722
Deposits                                1,023,417         1,002,747           891,562           683,546           606,498
Borrowings                                 35,011            39,937            41,879            45,219            45,940
Shareholders' fairness                       95,920            97,315            93,859            85,476            76,536

Common balances:
Loans, internet                          $     580,454     $     554,547     $     601,419     $     545,483     $     529,522
Securities                                388,827           231,285           129,508           112,290           118,511
Whole belongings                            1,151,925         1,111,808           931,330           765,722           716,243
Deposits                                1,012,629           969,009           788,904           636,441           589,646
Borrowings                                 40,218            42,600            48,358            44,478            51,014
Shareholders' fairness                       94,850            96,145            90,247            81,548            73,002

Choose ratios:
Internet curiosity margin, FTE basis1              2.98   %          2.63   %          3.22   %          3.97   %          3.98   %
Return on common whole belongings               1.16              0.97              1.13              1.36              1.31
Return on common shareholders'
fairness                                      14.04             11.27             11.71             12.77             12.89
Common shareholders' fairness as a
% of common whole belongings              8.23              8.65              9.69             10.65             10.19
Internet mortgage charge-offs (recoveries)
as a % of common loans               (0.02 )            0.00              0.06              0.01              0.19
Allowance for mortgage losses as a
% of loans at year-end                 1.09              1.39              1.36              1.27              1.08
Shareholders' fairness as a %
of whole year-end belongings                     8.28              8.50              9.10             10.44             10.46
Dividend payout ratio2                      26.48             30.73             29.35             28.42             28.57

¹Net curiosity margin is proven on a completely taxable equal foundation.
2Dividend payout ratio is calculated as dividends declared as a share of
internet revenue.




Internet Revenue
CSB's 2022 internet revenue was $13.3 million in comparison with $10.8 million for 2021, an
enhance of 23%. Whole income, internet curiosity revenue plus noninterest revenue,
elevated $4.2 million, or 12%, over the prior yr to a complete of $39.0 million.
The supply for mortgage losses decreased to a $895 thousand restoration as in contrast
to a $655 thousand restoration for the prior yr. Noninterest expense elevated
$1.3 million, or 6% and the availability for revenue tax elevated $656 thousand
over the prior yr on account of a rise in taxable revenue. Primary and diluted
earnings per share had been $4.91, up 24% from the prior yr. The return on common
belongings was 1.16% in 2022 in comparison with 0.97% in 2021 and return on common fairness
was 14.04% in 2022 in comparison with 11.27% in 2021.

Internet Curiosity Revenue

({Dollars} in hundreds)               2022           2021
Internet curiosity revenue              $   32,323     $   27,517
Taxable equivalent1                     145            154
Internet curiosity revenue, FTE         $   32,468     $   27,671
Internet curiosity margin                    2.97   %       2.61   %
Taxable equal adjustment1         0.01           0.02
Internet curiosity margin, FTE               2.98   %       2.63   %

¹Taxable equal changes have been computed assuming a 21% tax fee in
2022, and 2021 (non-GAAP).

Internet curiosity revenue is the most important supply of the Firm's income and consists
of the distinction between curiosity revenue generated on incomes belongings and
curiosity expense incurred on liabilities (deposits, short-term and long-term
borrowings). Volumes, rates of interest, composition of interest-earning belongings,
and interest-bearing liabilities have an effect on internet curiosity revenue. Internet curiosity revenue
elevated $4.8 million, or 17%, in 2022 in comparison with 2021. The rise was a
results of a $5.3 million enhance in curiosity revenue, partially offset by an
enhance of $484 thousand in curiosity expense. The FTE internet curiosity margin
elevated to 2.98% from 2.63% in 2021.

Curiosity revenue elevated $5.3 million, or 18%, in 2022 in comparison with 2021
primarily on account of a rise of $4.1 million, or 155%, in taxable securities
curiosity revenue on account of a rise in common balances of $158 million and an
enhance in yield of 56 foundation factors ("bps"). Curiosity revenue on
interest-earning deposits primarily held on the Federal Reserve elevated $1.4
million in 2022 in comparison with 2021 primarily on account of a 139 foundation factors yield
enhance. Curiosity revenue on loans decreased $109 thousand primarily on account of a
lower of twenty-two foundation factors in yield which was partially offset by a rise
in mortgage quantity of $25 million. The lower in yield occurred as Payckeck
Prtection Program ("PPP") loans had been forgiven by the Small Enterprise
Administration ("SBA"), the financial institution acknowledged origination charges of $176 thousand in
curiosity revenue in 2022 as in comparison with $2.8 million in 2021 on the forgiven PPP

Curiosity expense elevated $484 thousand, or 24%, in 2022 as in comparison with 2021
primarily on account of fee will increase of seven bps on deposits and 10 foundation factors on
different borrowed funds. Common interest-bearing demand and financial savings deposit
balances elevated $16 million throughout the yr as financial savings charges continued however at
a lesser tempo than the prior yr as the rise within the cash provide created by
the federal government to offset pandemic financial decreases was being phased out to
customers and companies. Common time deposit balances decreased $5.6 million,
and the common rate of interest decreased 18 bps.



The next desk supplies detailed evaluation of adjustments in common balances,
yield, and internet curiosity revenue:


                                            2022                                                2021
                            Common                         Common             Common                         Common
({Dollars} in hundreds)     Steadiness 1        Curiosity        Fee 2             Steadiness 1        Curiosity        Fee 2
deposits in different banks $     111,775     $     1,703            1.52   %   $     259,789     $       337            0.13   %
Taxable                       364,478           6,665            1.83             206,077           2,613            1.27
Tax exempt 4                   24,349             553            2.27              25,208             577            2.28
Loans 3, 4                    587,765          26,043            4.43             562,592          26,156            4.65
Whole interest-
incomes belongings              1,088,367          34,964            3.21   %       1,053,666          29,683            2.82   %
incomes belongings
Money and due
from banks                     20,435                                              19,891
Financial institution premises
and gear, internet             13,601                                              13,372
Different belongings                   36,833                                              32,924
Allowance for mortgage
losses                         (7,311 )                                            (8,045 )
Whole belongings            $   1,151,925                                       $   1,111,808

Demand deposits         $     240,904             648            0.27   %   $     259,111             317            0.12   %
Financial savings deposits              315,881             670            0.21             281,888             281            0.10
Time deposits                 118,085           1,017            0.86             123,659           1,286            1.04
Borrowed funds                 40,218             161            0.40              42,600             128            0.30
Whole interest-
bearing liabilities           715,088           2,496            0.35   %         707,258           2,012            0.28   %
  liabilities and
Demand deposits               337,759                                             304,351
Different liabilities               4,228                                               4,054
Shareholders' fairness           94,850                                              96,145
Whole liabilities
and fairness              $   1,151,925                                       $   1,111,808
Internet curiosity
revenue 4                                       32,468                                              27,671
FTE adjustment                                   (145 )                                              (154 )
GAAP internet curiosity
revenue                                    $    32,323                                         $    27,517
Internet curiosity margin
FTE                                                              2.98   %                                            2.63   %
Internet curiosity unfold                                              2.86   %                                            2.54   %

¹Average balances have been computed on a mean each day foundation.
²Average charges have been computed primarily based on the amortized price of the
corresponding asset or legal responsibility.
³Average mortgage balances embody nonaccrual loans.
4Interest revenue is proven on a completely tax-equivalent foundation (non-GAAP), reconciled
to the GAAP quantity on the backside of the desk.



The next desk compares the affect of adjustments in common charges and adjustments
in common volumes on internet curiosity revenue:


                                                            2022 v. 2021
                                              Internet Improve
({Dollars} in hundreds)                          (Lower)         Quantity   


Improve (lower) in curiosity revenue:
Curiosity-earning deposits in different banks   $         1,366     $   (2,255 )   $    3,621
Taxable                                              4,052          2,904          1,148
Tax exempt 2                                           (24 )          (18 )           (6 )
Loans 2                                               (113 )        1,115         (1,228 )
Whole curiosity revenue change 2                       5,281          1,746   


Improve (lower) in curiosity expense:
Demand deposits                                        331            (49 )          380
Financial savings deposits                                       389             72            317
Time deposits                                         (269 )          (48 )         (221 )
Borrowed funds                                          33            (10 )           43
Whole curiosity expense change                          484            (35 )          519
Internet curiosity revenue change 2               $         4,797     $    1,781     $    3,016

¹ Modifications attributable to each quantity and fee, which can't be segregated, have
been allotted primarily based on absolutely the worth of the change on account of quantity and the
change on account of fee.
2 Curiosity revenue is proven on a completely tax-equivalent foundation (non-GAAP).

Provision (Restoration) For Mortgage Losses
The supply (restoration) for mortgage losses is set by administration because the
quantity required to convey the allowance for mortgage losses to a stage thought of
applicable to soak up possible incurred internet charge-offs inherent within the mortgage
portfolio as of interval finish. Throughout 2022 a restoration of credit score losses of $895
thousand was acknowledged in comparison with a 2021 restoration of credit score losses of $655
thousand. The recapture of provision for mortgage losses for the yr primarily
displays the development in credit score high quality together with the discount of impaired
and adversely categorized loans, in addition to the development in financial
indicators together with unemployment, residential actual property costs and client
confidence. Nonperforming loans decreased $832 thousand from 2021 to 2022. See
Monetary Situation - Allowance for Mortgage Losses for extra dialogue and
data relative to the availability for mortgage losses.

Noninterest Revenue

                                                          YEAR ENDED DECEMBER 31
                                                               Change from 2021
({Dollars} in hundreds)                         2022          Quantity        %           2021

Service costs on deposit accounts $ 1,174 $ 235

 25   % $     939
Belief providers                                    954           (105 )      (10 )       1,059
Debit card interchange charges                     2,105             55          3         2,050
Bank card charges                                  677            195         40           482
Acquire on sale of loans, together with MSRs             331         (1,118 )      (77 )       1,449
Earnings on bank-owned life insurance coverage             674             55          9           619
Unrealized (loss) achieve on fairness securities        (3 )          (31 )     (111 )          28
Different                                             799            100         14           699
Whole noninterest revenue                    $   6,711     $     (614 )       (8 ) % $   7,325

Noninterest revenue decreased $614 thousand, or 8%, in 2022 in comparison with the identical
interval in 2021. Acquire on gross sales of mortgage loans together with mortgage servicing
rights ("MSRs") decreased $1.1 million on account of fewer gross sales of actual property
mortgage loans into the secondary market as many customers took benefit of the
massive mortgage rate of interest declines in 2021. The Financial institution offered $10 million in
mortgage loans, together with features, in 2022 as in comparison with the sale of $47 million
of loans in 2021. Belief service income decreased $105 thousand with market
declines. Service costs on deposits, that are primarily buyer overdraft
charges, elevated $235 thousand in 2022. Debit card interchange charges elevated $55
thousand in 2022 in comparison with 2021 on account of quantity will increase. Bank card
interchange revenue elevated $195 thousand as enterprise bank card utilization
continued to extend. Earnings on financial institution owned life insurance coverage elevated $55

Noninterest Bills

                                                    YEAR ENDED DECEMBER 31
                                                         Change from 2021
({Dollars} in hundreds)                  2022         Quantity          %            2021
Salaries and worker advantages      $   13,446     $     847            7   % $   12,599
Occupancy expense                        1,085            52            5          1,033
Tools expense                          781            67            9            714
Skilled and director charges           1,551           367           31   


Monetary establishments tax                 779            28            4   


Advertising and marketing and public relations             551            90           20            461
Software program expense                         1,429            87            6          1,342
Debit card expense                         734            24            3            710
FDIC insurance coverage                             345          (133 )        (28 )          478
Amortization of intangible belongings            -           (44 )       (100 )           44
Different                                    2,692           (85 )         (3 )        2,777
Whole noninterest bills          $   23,393     $   1,300            6   % $   22,093

Noninterest expense elevated $1.3 million, or 6%, in 2022 in comparison with 2021.
Salaries and worker advantages elevated $847 thousand from will increase in base
and incentive compensation of $575 thousand. The capitalization of worker
prices of mortgage originations elevated the quantity acknowledged in wage expense by
$250 thousand in 2022, a results of decreased origination of economic and
mortgage loans. Skilled and director charges elevated $367 thousand primarily
on account of a rise in third social gathering help with contracting the financial institution's core
vendor, enhance of $64 thousand in authorized bills associated to mortgage collections,
$50 thousand enhance in audit and accounting charges, and $33 thousand enhance in
director's charges. Advertising and marketing and public relations expense elevated $90 thousand,
or 20%, with rising market protection. Software program expense elevated $87
thousand, or 6%, on account of full-year implementation of a brand new cell banking
platform together with core software program supplier will increase. Tools expense
elevated $67 thousand in 2022, as in comparison with 2021, with elevated depreciation
expense and gear upkeep contracts. Occupancy expense elevated $52
thousand primarily from depreciation from department renovations, property taxes and
insurance coverage. A rise of $28 thousand within the Ohio monetary establishments tax
was acknowledged as capital elevated. Debit card expense elevated $24 thousand
in 2022 on account of elevated quantity. The FDIC insurance coverage evaluation decreased $133
thousand, or 28%, with improved credit score high quality and elevated earnings. Different
bills decreased $85 thousand, or 3%.

Revenue Taxes
The supply for revenue taxes amounted to $3.2 million in 2022 as in comparison with
$2.6 million in 2021. The slight enhance in 2022 resulted from a rise in
revenue. The company statutory tax fee was 21% for 2022 and 2021. The
efficient tax fee in 2022 and 2021 approximates 19%.

Whole belongings of the Firm had been $1.2 billion on December 31, 2022 in comparison with
$1.1 billion on December 31, 2021, representing a rise of $15 million, or
1%. Internet loans elevated $79 million, or 15%, whereas funding securities
elevated $90 million, or 29%, and whole money and money equivalents decreased
$157 million, or 65%. Deposits elevated $21 million and short-term borrowings
decreased $4 million, whereas different borrowings from the Federal Dwelling Mortgage Financial institution
("FHLB") decreased by $946 thousand, or 28%.


Whole funding securities elevated $90 million, or 29%, to $401 million at
year-end 2022. CSB's portfolio is primarily comprised of company mortgage-backed
securities, obligations of state and political subdivisions, U.S. Treasury
notes, different authorities businesses' debt, and company bonds. Restricted
securities consist primarily of FHLB inventory.

The Firm has no publicity to government-sponsored enterprise most popular shares,
collateralized debt obligations, or belief most popular securities. The Firm's
municipal bond portfolio consists of tax-exempt common obligation and income
bonds. As of December 31, 2022, 73% of such bonds held an S&P or Moody's
funding grade ranking, and 27% had been non-rated native points. The municipal
portfolio features a broad spectrum of counties, cities, universities, and college
districts with 83% of the portfolio originating in Ohio, and 17% in
Pennsylvania. Gross unrealized safety losses throughout the portfolio had been 13% of
whole securities on December 31, 2022, reflecting rate of interest will increase, not
credit score downgrades.

Throughout December 2021, investments with an amortized price of roughly $79
million and a good worth of $77 million had been transferred from available-for-sale
to held-to-maturity as rising rates of interest and a slowing of month-to-month money
funds had been occurring. The switch included $76 million of U.S. Authorities
company mortgage-backed securities and $3 million of U.S. Treasury notes. These
bonds will nonetheless present liquidity via pledging and to be used as collateral
in opposition to borrowings. No extra transfers to held to maturity had been made in
2022, as bonds had been assigned their held to maturity classification on their
buy date in 2022.

One of many main features of the securities portfolio is to offer a supply
of liquidity and it's structured such that maturities and money flows present a
portion of the Firm's liquidity wants and asset/legal responsibility administration


Whole loans elevated $78 million, or 14%, throughout 2022 with will increase in all
mortgage classes. Quantity will increase had been acknowledged as follows: business loans
together with PPP loans elevated $5 million, or 4%, throughout 2022, with PPP mortgage
forgiveness of $4 million offsetting the rise. Remaining PPP mortgage balances
had been $359 thousand as of December 31, 2022. Building and land growth
loans elevated $9 million, or 20% as a number of business tasks had been below
building and client demand slowed for 1-4 household residential building
at yr finish. Residential actual property loans elevated $26 million, or 15%.
Industrial actual property loans elevated $37 million, or 19%. Industrial actual
property and building mortgage demand remained robust, nonetheless there was a slowing
of economic mortgage development with elevated competitors from non-public lenders and
extra enterprise liquidity remaining from authorities stimulus applications.

The Firm originated $69 million and $67 million of residential mortgage loans
held within the portfolio, together with residential building, standard 1-4
household, and fairness line loans, which had been predominately variable fee, in 2022
and 2021, respectively. The rise in rates of interest slowed client demand
for 1-4 household fixed-rate thirty-year residential mortgages that are offered into
the secondary market because the Firm offered $10 million of mortgages into the
secondary market in 2022 as in comparison with $46 million in 2021. Demand for residence
fairness loans strengthened in 2022, with balances rising $7 million, as
customers opted to not refinance their decrease fixed-rate mortgages. Installment
loans elevated $300 thousand.

Administration anticipates modest financial development within the Firm's native service
areas will proceed to enhance. Industrial and business actual property loans, in
combination, comprise roughly 58% of the whole mortgage portfolio at year-end
2022 and 2021. Residential actual property loans remained at 31% of the portfolio in
2022 and 2021. Building and land growth loans elevated to 9% of the
portfolio as mortgage demand for business building tasks elevated by $7
million and residential building loans elevated by $2 million, yr over
yr. The Firm is nicely throughout the respective regulatory pointers for
funding in building, growth, and funding property loans which are
not proprietor occupied.

A lot of the Firm's lending exercise is with clients primarily positioned
inside Holmes, Stark, Tuscarawas and Wayne counties in Ohio. Nearly all of the
Firm's mortgage portfolio consists of economic and industrial and business
actual property loans. See focus of credit score dialogue included in Notice 3 in
the Notes to Consolidated Monetary Statements.

Nonperforming Property, Impaired Loans, and Loans Previous Due 90 Days or Extra
Nonperforming belongings encompass nonaccrual loans, loans overdue 90 days and
nonetheless accruing, and different actual property acquired via or in lieu of
foreclosures. Different impaired loans embody sure loans internally categorized as
substandard or uncertain. Loans are positioned on nonaccrual standing after they turn into
overdue 90 days or extra, or when mortgage loans are overdue as to principal
and curiosity 120 days or extra, until they're each nicely secured and within the
technique of assortment.

NONPERFORMING ASSETS                                      DECEMBER 31
({Dollars} in hundreds)                                 2022         2021
Nonaccrual loans
Industrial                                          $      -     $     208
Industrial actual property                                    92           139
Residential actual property                                   99           367
Building & land growth                            -           329
Client                                                  65            40

Loans overdue 90 days or extra and nonetheless accruing
Industrial                                                 -             5
Whole nonperforming loans                                256         1,088

Different actual property owned                                    -             -
Different repossessed belongings                                   -             -
Whole nonperforming belongings                          $    256     $   1,088

Nonaccrual loans to whole loans                         0.04   %      0.20   %

Allowance for Mortgage Losses
The allowance for mortgage losses is maintained at a stage thought of by administration
to be enough to cowl mortgage losses at present anticipated primarily based on previous loss
expertise, common financial situations, adjustments in combine and measurement of the mortgage
portfolio, details about particular borrower conditions, and different components and
estimates that are topic to alter over time. Administration periodically opinions
chosen massive loans, delinquent and different drawback loans, and chosen different
loans. Collectability of those loans is evaluated by contemplating the present
monetary place and efficiency of the borrower, estimated market worth of
the collateral, the Firm's collateral place in relationship to different
collectors, ensures, and different potential sources of compensation. Administration
varieties judgments, that are partly subjective, as to the likelihood of loss and
the quantity of loss on these loans in addition to different loans taken collectively. The
Firm's Allowance for Mortgage Losses Coverage consists of, amongst different gadgets,
provisions (recoveries) for categorized loans, and a provision (restoration) for the
the rest of the portfolio primarily based on historic knowledge, together with previous charge-offs.

Throughout 2022, $689 thousand in nonaccrual loans had been collected, $226 thousand
had been charged-off, $93 thousand had been returned to accrual, whereas $181 thousand new
loans entered nonaccrual standing.

ALLOWANCE FOR LOAN LOSSES                                     FOR THE YEAR 


({Dollars} in hundreds)                                          2022        


Internet charge-offs (recoveries) as a share of common
whole loans

                                                      (0.02 ) %          -   %
Allowance for mortgage losses as a share of whole loans          1.09      


Allowance for mortgage losses to whole nonacrrual loans              26.71   x  

7.00 x

Elements of the allowance for mortgage losses:
Normal reserves                                             $   6,834      $   7,396
Particular reserve allocations                                         4      


Whole allowance for mortgage losses                              $   6,838      

$ 7,618

The allowance for mortgage losses totaled $6.8 million, or 1.09%, of whole loans at
year-end 2022 as in comparison with $7.6 million, or 1.39%, of whole loans at year-end
2021. The Financial institution had internet mortgage recoveries of $115 thousand in 2022 in comparison with internet
mortgage charge-offs of $1 thousand for 2021.

The Firm maintains an inside watch record on which it locations loans the place
administration's evaluation of the borrower's working outcomes and monetary
situation signifies the borrower's money flows are insufficient to satisfy its debt
service necessities and loans the place there exists an elevated danger that such a
shortfall might happen. Nonperforming loans, which encompass loans overdue 90
days or extra and nonaccrual loans, aggregated $256 thousand, or 0.04%, of loans
at year-end 2022 in comparison with $1.1 million, or 0.20%, of loans at year-end 2021.
Impaired loans had been $1 million at year-end 2022 as in comparison with $2 million at
year-end 2021. Administration has assigned loss allocations to soak up the estimated
losses on impaired loans. These allocations are included within the whole allowance
for mortgage losses stability.

Different Property
Internet premises and gear decreased $452 thousand to $13.4 million at year-end
2022 with depreciation expense exceeding purchases. Whole bank-owned life
insurance coverage elevated from $24 million at year-end 2021 to $24.7 million at
year-end 2022 with rising money give up values. There was no different actual
property owned on December 31, 2022 or 2021. The Firm acknowledged a internet deferred
tax asset of $3 million on December 31, 2022 in comparison with a internet deferred tax
asset of $325 thousand on December 31, 2021. The rise within the internet deferred
tax asset is a results of the rise within the gross unrealized losses on
available-for-sale securities which is a results of rising rates of interest throughout


The Firm's deposits are obtained primarily from people and companies
positioned in its market space. For deposits, the Firm should compete with merchandise
provided by different monetary establishments, in addition to various funding
choices. Demand and financial savings deposits elevated for the yr ended 2022, at a
lesser development trajectory following the trillions of presidency stimulus aid
pumped into the financial system throughout the COVID-19 pandemic. Market charges on deposits
and money administration merchandise elevated all year long as liquidity
decreased within the business.

                                                       December 31                   Change from 2021
({Dollars} in hundreds)                           2022              2021             Quantity            %
Noninterest-bearing demand                  $     350,283     $     334,346     $      15,937           5   %
Curiosity-bearing demand                           241,227           242,387            (1,160 )         -
Conventional financial savings                               194,918           191,836             3,082           2
Cash market financial savings                              118,908           112,803             6,105           5
Time deposits in extra of $250,000                28,089            26,213             1,876           7
Different time deposits                                89,992            95,162            (5,170 )        (5 )
Whole deposits                              $   1,023,417     $   1,002,747     $      20,670           2   %

Different Funding Sources
The Firm obtains extra funds via securities offered below repurchase
agreements, in a single day borrowings from the FHLB or different monetary establishments,
and advances from the FHLB. Brief-term borrowings, consisting of securities offered
below repurchase agreements, decreased $4 million. Different borrowings, consisting
of FHLB advances, decreased $946 thousand as the results of principal repayments.
All FHLB borrowings on December 31, 2022, have long run maturities with month-to-month
amortizing funds.

Whole shareholders' fairness was $95.9 million at December 31, 2022 in comparison with
$97.3 million on December 31, 2021. This lower was primarily on account of a $10.8
million accrued different complete loss acknowledged on the
available-for-sale securities portfolio ensuing from rising curiosity
charges. Dividends had been paid of $3.5 million and $388 thousand treasury inventory was
repurchased in 2022, which was partially offset by internet revenue of $13.3 million.
The Board of Administrators permitted a Inventory Repurchase Program on February 26, 2021,
permitting the repurchase of as much as 5% of the Firm's then-outstanding widespread
shares. Repurchased shares are to be held as treasury inventory and can be found
for common company functions. On December 31, 2022, roughly 102 thousand
shares might nonetheless be repurchased below the present licensed program. Shares
repurchased throughout 2022 totaled 10,448 shares for $388 thousand and shares
bought in 2021 totaled 24,326 shares for $939 thousand.

Efficient January 1, 2015, the Federal Reserve adopted ultimate guidelines implementing
Basel III and regulatory capital adjustments required by the Dodd-Frank Act. The
guidelines apply to each the Firm and the Financial institution. The principles established minimal
risk-based and leverage capital necessities for all banking organizations. The
guidelines embody: (a) a typical fairness tier 1 capital ratio of no less than 4.5%, (b) a
tier 1 capital ratio of no less than 6.0%, (c) a minimal whole capital ratio of at
least 8.0%, and (d) a minimal leverage ratio of 4%. Beneath the rules,
capital is in comparison with the relative danger associated to the stability sheet. To derive
the danger included within the stability sheet, considered one of a number of danger weights is utilized
to completely different stability sheet and off-balance sheet belongings based on the
relative credit score danger of the counterparty. The capital quantities and
classifications are additionally topic to qualitative judgments by the regulators
about elements, danger weightings, and different components. The principles additionally place
restrictions on the fee of capital distributions, together with dividends, and
sure discretionary bonus funds to govt officers if the corporate does
not maintain a capital conservation buffer of larger than 2.5% composed of widespread
fairness tier 1 capital above its minimal risk-based capital necessities. The
Firm and Financial institution's precise and required capital quantities are disclosed in Notice 12
to the consolidated monetary statements.

Dividends paid by the Financial institution to CSB are the first supply of funds out there to
the Firm for fee of dividends to shareholders and for different working
capital wants. The fee of dividends by the Financial institution to the Firm is topic to
restrictions by regulatory authorities, which typically restrict dividends to
present yr internet revenue and the prior two (2) years internet retained earnings, as
outlined by regulation. As well as, dividend funds typically can not cut back
regulatory capital ranges beneath the minimal regulatory pointers mentioned



                                                             December 31
({Dollars} in hundreds)                                 2022               2021            from 2021
Money and money equivalents                         $      86,420      $     243,657      $   (157,237 )
Unused traces of credit score                                  122,062            107,054            15,008
Unpledged AFS securities at honest market worth           134,401            108,158            26,243
                                                  $     342,883      $     458,869      $   (115,986 )
Internet deposits and short-term liabilities           $   1,041,016      $   1,016,821      $     24,195
Liquidity ratio                                            32.9   %           47.6   %
Minimal board permitted liquidity ratio                     20.0   %         

20.0 %

Liquidity refers back to the Firm's capacity to generate ample money to fund
present mortgage demand, meet deposit withdrawals, pay working bills, and meet
different obligations. Liquidity is monitored by CSB's Asset Legal responsibility Committee.
The Firm was inside all Board-approved limits on December 31, 2022, and 2021.
Extra sources of liquidity embody internet revenue, mortgage repayments, the
availability of borrowings, and changes of rates of interest to draw deposit

As summarized within the Consolidated Statements of Money Flows, essentially the most important
investing actions for the Firm in 2022 included internet mortgage originations of
$78 million and securities purchases of $144 million, offset by maturities and
compensation of securities totaling $38 million. The Firm's financing actions
included a $21 million enhance in deposits, $4 million in money dividends paid,
and a $4 million lower in short-term borrowings.

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