CSB Financial Inc.

This final guide provides a clear, concise overview of CSB Financial Inc.'s upcoming Initial Public Offering (IPO). Designed for retail investors, it breaks down key information from the SEC filing, helping you understand the company and the offering without confusing financial jargon.

1. Business Description: What CSB Financial Inc. Does

CSB Financial Inc. is the new holding company formed on February 18, 2026, to facilitate Community Savings Bank's conversion from a mutual savings bank (owned by its depositors) to a stock bank (owned by shareholders). After the IPO, you will own shares in CSB Financial Inc., which in turn will wholly own Community Savings Bank.

Community Savings Bank is a local institution with a long history, having begun operations in 1889 in Bethel, Ohio. The bank expanded its footprint in 2014 by acquiring another local bank in Greenfield, Ohio.

The bank operates from its main office in Bethel, Ohio, and one branch office in Greenfield, Ohio. Its primary service area includes Clermont and Highland Counties in Ohio, which are predominantly rural. However, it also actively seeks loan customers in the larger Cincinnati Metropolitan Area.

CSB Financial Inc. offers typical banking services, including:

• Checking and savings accounts
• Money market accounts
• Certificates of deposit (CDs)
• Online and mobile banking

The bank's core business involves accepting deposits and then lending that money. As of December 31, 2025, its loan portfolio was diverse:

• Home loans (mortgages) for one-to-four family homes represent the largest segment at $41.2 million (44.2% of all loans).
• Consumer loans (such as personal or auto loans) total $17.5 million (18.7%). This category grew significantly by $14.9 million in 2025. The bank often purchases these consumer loans (and some business loans) from other companies. This strategy diversifies the loan portfolio and can accelerate growth without requiring the bank to originate every loan itself. However, it also means the bank relies on the credit underwriting standards of the originating institutions, which introduces different risks.
• Business real estate loans amount to $11.5 million (12.3%).
• Apartment building loans are $9.9 million (10.7%).
• Commercial and industrial loans (for businesses) total $7.7 million (8.2%).
• Construction and land loans are $2.7 million (2.9%).
• Second mortgages and home equity loans account for $2.8 million (3.0%).

The Ohio Department of Financial Institutions and the FDIC, which insures bank deposits, regulate the bank.

2. Financial Highlights: Revenue and Growth

CSB Financial Inc., like most financial institutions, generates revenue primarily through:

• Interest on Loans: This is the bank's primary revenue source. It earns interest by lending money for mortgages, business loans, and other purposes. The difference between the interest it pays on deposits and the interest it charges on loans forms its profit.
• Fees for Services: The bank may charge fees for services like managing investment portfolios or processing transactions. However, the company states that noninterest income is not a significant revenue source.

As of December 31, 2025, the company's financial health indicators were:

• Total assets: $110.2 million
• Total deposits: $82.2 million
• Total equity: $15.8 million

Regarding profitability:

• For the year ended December 31, 2025, the company reported a profit of $439,000.
• However, for the year ended December 31, 2024, it reported a loss of $369,000. This loss primarily resulted from a one-time expense of $790,000 associated with upgrading its core computer system for customer accounts. This suggests the loss was not indicative of a struggling core business.

What's Missing from This Summary: To fully assess financial health and growth, investors typically look for more detailed metrics. This summary doesn't provide specific figures for things like Net Interest Income, Net Interest Margin (a key measure of lending profitability), detailed non-interest expenses, or the bank's efficiency ratio. We also don't have specific asset quality metrics (like non-performing loans), capital ratios, or return on asset/equity figures, which are all important for understanding a bank's financial strength and performance. While total assets and deposits are given, specific year-over-year growth rates for loans, deposits, and overall revenue would offer a clearer picture of expansion.

The profit rebound in 2025 after the one-time system upgrade cost is positive, but more detailed financial metrics are needed for a comprehensive analysis.

3. Use of Proceeds: How the IPO Funds Will Be Used

An IPO allows a company to raise capital by selling shares to investors. For CSB Financial Inc., this IPO facilitates Community Savings Bank's conversion from a mutual bank to a stock bank, with CSB Financial Inc. becoming the new parent company.

The net proceeds from the offering will be allocated between CSB Financial Inc. (the holding company) and Community Savings Bank.

• CSB Financial Inc. (Holding Company): The holding company will retain a portion of the net proceeds for general corporate purposes, including:
  • Investing in marketable securities.
  • Funding future growth initiatives.
  • Potentially repurchasing shares of common stock.
  • Paying dividends to shareholders (subject to regulatory limitations and board approval).
  • Funding potential acquisitions of other financial institutions or related businesses.
• Community Savings Bank (Bank Subsidiary): The company will contribute the remaining portion of the net proceeds to Community Savings Bank as additional capital. This capital will be used to:
  • Support lending activities and growth in its loan portfolio.
  • Maintain strong regulatory capital ratios.
  • Fund investments in technology and infrastructure.
  • Support general corporate operations.

The company also plans to contribute 27,500 shares of its common stock and $100,000 in cash to a charitable foundation established as part of this conversion.

The goal is to use these funds to strengthen and grow the company, potentially increasing the value of your investment.

4. Risk Factors: Key Investment Risks

As with any investment, CSB Financial Inc.'s IPO carries inherent risks. Investors should carefully consider the following:

• Not a Bank Account: These shares are NOT insured or guaranteed by the FDIC or any other government agency. You could lose your invested capital.
• Economic Downturns: A weakening economy can lead to increased loan defaults, directly impacting the bank's profitability, especially given its significant lending activities.
• Interest Rate Changes: Unexpected fluctuations in interest rates can affect the bank's net interest income and overall profitability.
• Competition: The financial services industry is highly competitive, with challenges from large national banks, smaller local banks, and emerging online financial services.
• Regulatory Environment: Financial institutions face extensive regulation. New or stricter rules could impact the bank's business model or increase operating costs.
• Cybersecurity: Handling sensitive financial data makes the bank vulnerable to security breaches, which could result in significant damage and costs.
• Unproven Track Record as a Public Company: While the bank has a long history, operating as a public company introduces new pressures and scrutiny.
• Emerging Growth Company Status: CSB Financial Inc. is classified as an "emerging growth company," allowing it to provide less information in public filings than larger, more established companies.
• Reliance on Purchased Loans: The strategy of purchasing consumer and some business loans means the bank depends on the underwriting quality of other institutions, potentially exposing it to unexpected credit risks if those loans perform poorly.
• Geographic and Loan Concentration: A significant portion of the bank's business is concentrated in specific rural Ohio counties and in one-to-four family home mortgages (44.2%). An economic downturn or specific issues in these areas or loan segments could disproportionately impact its performance.
• Small Scale and Limited Diversification: As a relatively small bank, it may have less diversified revenue streams and a smaller capital base compared to larger competitors, potentially making it more vulnerable to economic shocks or competitive pressures.
• OTCQB Market Listing: Trading on the OTCQB Market typically involves lower trading volume and liquidity compared to major exchanges like NASDAQ or NYSE. This could make it harder for investors to buy or sell shares at desired prices and may result in greater price volatility.
• Conversion-Related Risks: The transition from a mutual to a stock company can introduce operational complexities and potential stock price volatility as the market adjusts to the new structure.
• No Prior Market for Stock: There has been no public market for CSB Financial Inc.'s common stock prior to this offering, which may result in an illiquid market for the shares.
• Dividends Not Guaranteed: The payment of dividends is not guaranteed and will depend on the company's financial condition, results of operations, capital requirements, regulatory limitations, and other factors.

5. Competitive Landscape: How CSB Financial Inc. Compares

Understanding CSB Financial Inc.'s competitive landscape provides context for its market position. The bank operates as a smaller, community-focused institution, with its main office and one branch in specific rural Ohio counties, though it extends its lending reach into the Cincinnati area.

CSB Financial Inc., through Community Savings Bank, operates in a highly competitive financial services environment. Its primary competitors include:

• Other community banks and thrifts: Both mutual and stock-owned institutions operating in its primary service areas of Clermont and Highland Counties, Ohio, and the broader Cincinnati Metropolitan Area.
• Larger regional and national banks: These institutions often possess greater financial resources, broader product offerings, and more extensive branch networks.
• Credit unions: Member-owned financial cooperatives that offer similar banking products and services, often with competitive rates.
• Non-bank financial service providers: This includes mortgage companies, online lenders, and fintech companies that offer specific financial products, potentially at lower costs or with greater convenience.

The company competes on factors such as customer service, convenience, interest rates on loans and deposits, product offerings, and community involvement. As a smaller institution, CSB Financial Inc. aims to differentiate itself through personalized service and a deep understanding of its local market.

What's Missing from This Summary: While this summary correctly identifies the bank as a small, community-focused institution, it doesn't include a specific peer group analysis. A comprehensive S-1 filing would typically compare CSB Financial Inc.'s key financial metrics (like net interest margin, asset quality, loan growth, deposit growth, and efficiency ratio) against similar-sized community banks in its operating region. This specific comparison is not available in this summary.

6. Management Team: Leadership

The leadership team plays a crucial role in a company's success. The President and Chief Executive Officer of CSB Financial Inc. is John E. Essen.

What's Missing from This Summary: For a complete picture, investors typically receive detailed biographies of the entire executive management team and the Board of Directors. This would include the names, ages, and professional experience of other executive officers (like the CFO or COO), as well as details about each director, their qualifications, and board committee memberships. This summary doesn't provide specific names or detailed biographies for other executive officers or the Board of Directors. Information on executive compensation (salaries, bonuses, equity awards) and corporate governance structure is also not disclosed in this summary.

7. Offering Details: Exchange and Ticker

Upon going public, CSB Financial Inc.'s shares will trade on a stock exchange, enabling investors to buy and sell them.

• Exchange: The company expects its common stock to be quoted on the OTCQB Market. This exchange typically lists smaller companies and may have lower liquidity compared to major exchanges like the NYSE or NASDAQ.
• Ticker Symbol: The specific ticker symbol for CSB Financial Inc. is not disclosed in this summary.

8. Offering Details: Shares and Price

The company and its investment bankers have set the initial offering price and share allocation.

• Price: Shares are offered at a fixed price of $10.00 per share.
• Number of Shares: The company must sell a minimum of 935,000 shares to complete the offering. It offers up to 1,265,000 shares, with the potential to sell up to 1,454,750 shares if demand is high, without requiring further investor approval.
• Minimum Purchase: Investors must purchase at least 25 shares.
• Purchase Limits: An individual generally cannot buy more than 17,500 shares ($175,000). For any person or group acting together, the limit is 25,000 shares ($250,000) across all parts of the offering.

How the shares are sold: The company first offers shares to Community Savings Bank's current depositors and employee benefit plans (known as the "subscription offering"). Any unsold shares may then be offered to the general public in a "community offering," with preference given to residents of Clermont and Highland Counties in Ohio. If shares still remain, they might be sold through a group of broker-dealers in a "syndicated community offering."

Important Dates:

• The subscription offering is expected to expire at 5:00 p.m., Eastern time, on a date in June 2026. The exact expiration date is not disclosed in this summary.
• The company can extend this deadline without prior notice until a certain date in 2026, or longer with regulatory approval. However, the specific date until which they can extend without prior notice is not disclosed in this summary.
• The entire stock offering must be completed by a date in June 2028. The exact final completion date is not disclosed in this summary.
• If the offering is extended beyond a certain date, investors will be notified and can modify or cancel their orders.
• Any funds submitted to purchase shares will be held in a special account at Community Savings Bank and will earn interest (0.15% per year) until the offering is completed or canceled.

Underwriter: Performance Trust Capital Partners, LLC is assisting with the sale of shares on a "best efforts" basis, meaning they will endeavor to sell the shares but are not obligated to purchase any unsold shares themselves.

Investing in an IPO involves inherent risks. Always conduct thorough due diligence and ensure any investment aligns with your personal financial objectives. Given the limited detail in some areas of this summary, you might want to seek out the full SEC filing (S-1) for a more comprehensive understanding before making an investment decision.