Since 2007 has not been the best of years for US financial institutions, encouraging business results for the year must reflect very positively indeed on the management. This Ohio bank has declared a cash dividend in December 2007, which is a healthy 12.5% higher than the dividend announced in December 2006. The stock is of a holding company that owns an operating bank. The latter has some 10 branches in the State, and serves both local enterprises and individuals.
CSB Bancorp has a comprehensive range of banking products and financial services. The bank has been in operation since 1879, and has an intimate association with local communities, spanning several generations and decades. This template of financial services stands in sharp contrast with the business model of large and global banks, many of which are now under the sub-prime and related clouds.
The people of Ohio have long been known for their resilience, integrity, and senses of purpose. The 2007 performance of this relatively small and local bank in a trying business climate points to rapid progress during 2008, once the President’s economic stimulus package takes effect. However, this is not the only reason to recommend buying stocks of the holding company that owns the bank, for it seems to hold key business management lessons as well. Active stock investors can use part ownerships of this holding company to appreciate best practices in strategic and operational management, so that cash flows and returns on capital employed can be protected during downturns and turbulence in the business environment.
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