Community State Bank Reports Strong 3rd Quarter

Strong 3rd quarter earnings of Community State Bank were reported by Stuart H. Lubow, President and CEO, and Michael E. Levin, Chairman of the Board of the Teaneck-based bank. As of September 30, 2002, the bank had assets of $119.9 million, compared to $90.8 million at September 30, 2001. Loan balances grew to $81.5 million (net of reserves) compared to $63.4 million at the end of the third quarter of 2001.

TEANECK, NJ -- In spite of an economy that remains soft, Community State Bank continued to increase earnings and its loan portfolio, according to a report released by CSB Financial Corp (NASDAQ OTC symbol CSBF), the banks holding company. As of September 30, 2002, CSB had assets of $119.9 million, compared to $90.8 million at September 30, 2001. The announcement was made jointly by Stuart H. Lubow, President and CEO, and Michael E. Levin, Chairman of the Board of the Teaneck-based bank.

Loan volume remained strong, and loan balances grew to $81.5 million (net of reserves) compared to $73.7 million at June 30, 2002 and $63.4 million at the

end of the third quarter 2001. Deposits also continued to show strong growth, with deposits totaling $103.6 million at the end of the quarter (compared to $105.5 million and $77.1 million at June 30, 2002 and September 30, 2001,
respectively).

Community State Bank reported a net income of $372,000 (or $0.34 a share) for the third quarter of 2002, as compared to $66,000 (or $0.06 per share) for the same period of 2001. Year-to-date, CSB had earned $800,000 (or $0.73 per share) as compared to $169,000 (or $0.15 per share) for the nine months ended September 30, 2001.

Asset quality continued to remain very strong. The allowance for loan losses stood at $850,000 at the end of the third quarter, as compared to $830,000 at June 30, 2002 and $494,000 at September 30, 2001.

Community State Bank can be contacted by phone at (201) 836-8300 or through its informational web site, www.csbnj.com. CSB, an independent state-chartered commercial bank headquartered at 417 Cedar Lane, Teaneck, also has full-service offices in Teaneck, Hackensack, Park Ridge, and Englewood. The bank is a member of the FDIC and is an Equal Opportunity Lender.

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