##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended: March 31, 2006
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Commission file number: 0-21714
 CSB
Bancorp, Inc.
 
  Ohio
    
    34-1687530(State or other jurisdiction of
incorporation or organization)
    
    (I.R.S. Employer Identification Number)
  
   
   þ o
  o o þ
  o þ
  Common stock, $6.25 par value
    
    Outstanding at May 12, 2006:2,519,733 common
shares




---



##### 



PagePart I  Financial InformationITEM 1  FINANCIAL STATEMENTS (Unaudited)Consolidated Balance Sheets
    
    
    3Consolidated Statements of Income
    
    
    4Consolidated Statements of Changes in Shareholders Equity
    
    
    5Condensed Consolidated Statements of Cash Flows
    
    
    6Notes to the Unaudited Consolidated Financial Statements
    
    
    7ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    10ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
    
    
    14ITEM 4  CONTROLS AND PROCEDURES
    
    
    15Part II  Other InformationITEM 1  LEGAL PROCEEDINGS
    
    
    161A  RISK FACTORS
    
    
    162  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
    
    
    163  DEFAULTS UPON SENIOR SECURITIES
    
    
    164  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
    
    
    165  OTHER INFORMATION
    
    
    166  EXHIBITS
    
    
    17Signatures
    
    
    18EX-11 Statement Regarding Computation of Per Share EarningsEX-31.1 302 Certification for CEOEX-31.2 302 Certification for CFOEX-32.1 906 Certification for CEOEX-32.2 906 Certification for CFO




---



##### Table of Contents



March 31,
    
    
    December 31,2006
    
    
    2005ASSETSCash and due from banks
    
    $
    10,267,739
    
    
    $
    14,785,250Interest-earning deposits in other banks
    
    
    47,167
    
    
    
    124,726Federal funds sold
    
    
    
    
    
    
    1,740,000Total cash and cash equivalents
    
    
    10,314,906
    
    
    
    16,649,976Securities available-for-sale, at fair value
    
    
    75,856,687
    
    
    
    78,273,248Restricted stock, at cost
    
    
    2,984,900
    
    
    
    2,947,000Total securities
    
    
    78,841,587
    
    
    
    81,220,248Loans held for sale
    
    
    242,212
    
    
    
    Loans
    
    
    221,123,243
    
    
    
    215,019,673Less allowance for loan losses
    
    
    2,470,768
    
    
    
    2,445,494Net loans
    
    
    218,652,475
    
    
    
    212,574,179Premises and equipment, net
    
    
    7,587,163
    
    
    
    7,671,822Accrued interest receivable and other assets
    
    
    3,138,328
    
    
    
    2,873,007Total Assets
    
    $
    318,776,671
    
    
    $
    320,989,232LIABILITIESDepositsNoninterest-bearing
    
    $
    36,938,182
    
    
    $
    41,807,069Interest-bearing
    
    
    210,106,032
    
    
    
    213,595,648Total deposits
    
    
    247,044,214
    
    
    
    255,402,717Short-term borrowings
    
    
    32,307,224
    
    
    
    21,417,616Other borrowings
    
    
    2,852,923
    
    
    
    8,067,840Accrued interest payable and other liabilities
    
    
    1,580,626
    
    
    
    930,800Total liabilities
    
    
    283,784,987
    
    
    
    285,818,973SHAREHOLDERS EQUITYCommon stock, $6.25 par value: Authorized 9,000,000
shares; issued 2,667,786 shares
    
    
    16,673,667
    
    
    
    16,673,667Additional paid-in capital
    
    
    6,416,440
    
    
    
    6,413,915Retained earnings
    
    
    15,115,371
    
    
    
    14,752,250Treasury stock at cost- 100,381 shares in 2006 and
89,287 shares in 2005
    
    
    (2,322,410
    )
    
    
    (2,086,686
    )Accumulated other comprehensive loss
    
    
    (891,384
    )
    
    
    (582,887
    )Total shareholders equity
    
    
    34,991,684
    
    
    
    35,170,259Total Liabilities and Shareholders Equity
    
    $
    318,776,671
    
    
    $
    320,989,232
  3.




---



##### Table of Contents



Three Months EndedMarch 31,2006
    
    
    2005Interest incomeLoans, including fees
    
    $
    3,822,504
    
    
    $
    3,285,392Taxable securities
    
    
    777,800
    
    
    
    519,329Nontaxable securities
    
    
    101,823
    
    
    
    168,788Other
    
    
    6,592
    
    
    
    670Total interest income
    
    
    4,708,719
    
    
    
    3,974,179Interest expenseDeposits
    
    
    1,166,920
    
    
    
    868,997Other
    
    
    247,526
    
    
    
    176,478Total interest expense
    
    
    1,414,446
    
    
    
    1,045,475Net interest income
    
    
    3,294,273
    
    
    
    2,928,704Provision for loan losses
    
    
    32,000
    
    
    
    105,999Net interest income after provision
for loan losses
    
    
    3,262,273
    
    
    
    2,822,705Non-interest incomeService charges on deposit
accounts
    
    
    315,086
    
    
    
    212,555Gain on sale of securities
    
    
    
    
    
    
    247,047Trust and financial services
    
    
    92,242
    
    
    
    117,151Other income
    
    
    203,115
    
    
    
    203,504Total non-interest income
    
    
    610,443
    
    
    
    780,257Non-interest expensesSalaries and employee benefits
    
    
    1,491,005
    
    
    
    1,402,464Occupancy expense
    
    
    171,213
    
    
    
    158,778Equipment expense
    
    
    136,136
    
    
    
    123,488State franchise tax
    
    
    109,200
    
    
    
    104,923Professional and director fees
    
    
    174,020
    
    
    
    156,475Other expenses
    
    
    666,236
    
    
    
    731,021Total non-interest expenses
    
    
    2,747,810
    
    
    
    2,677,149Income before income taxes
    
    
    1,124,906
    
    
    
    925,813Federal income tax provision
    
    
    351,000
    
    
    
    259,000Net income
    
    $
    773,906
    
    
    $
    666,813Basic and diluted earnings
per share
    
    $
    0.30
    
    
    $
    0.25
  4.




---



##### Table of Contents



Three Months EndedMarch 31,2006
    
    
    2005Balance at beginning of period
    
    $
    35,170,259
    
    
    $
    36,207,507Comprehensive income (loss):Net income
    
    
    773,906
    
    
    
    666,813Change in net unrealized
loss, net of reclassification adjustments
and related income taxes ($158,774 and $378,457)
    
    
    (308,497
    )
    
    
    (734,652
    )Total comprehensive income (loss)
    
    
    465,409
    
    
    
    (67,839
    )Issuance of 6 shares from treasury stock
    
    
    
    
    
    
    121Stock-based compensation expense
    
    
    2,525Purchase of 11,094 shares of treasury stock
    
    
    (235,724
    )Cash dividends declared
($0.16 per share in 2006, and $0.14 per share in 2005)
    
    
    (410,785
    )
    
    
    (370,295
    )Balance at end of period
    
    $
    34,991,684
    
    
    $
    35,769,494
  5.




---



##### Table of Contents



Three Months EndedMarch 31,2006
    
    
    2005Net cash from operating activities
    
    $
    1,302,626
    
    
    $
    677,680Cash flows from investing activitiesSecurities available-for-saleProceeds from maturities, calls and repayments
    
    
    1,928,276
    
    
    
    725,910Proceeds from sales
    
    
    
    
    
    
    5,098,433Purchases
    
    
    (1,589
    )
    
    
    (99,891
    )Purchase of FHLB stock
    
    
    (37,900
    )
    
    
    (26,900
    )Net change in loans
    
    
    (6,127,352
    )
    
    
    (6,271,614
    )Net change in loans held for sale
    
    
    (242,212
    )Premises and equipment expenditures, net
    
    
    (68,810
    )
    
    
    (327,277
    )Net cash used for investing activities
    
    
    (4,307,375
    )
    
    
    (901,339
    )Cash flows from financing activitiesNet change in deposits
    
    
    (8,358,503
    )
    
    
    (4,227,957
    )Net change in short-term borrowings
    
    
    10,889,608
    
    
    
    4,928,379Repayments of other borrowings
    
    
    (5,214,917
    )
    
    
    (5,252,179
    )Purchase of treasury shares
    
    
    (235,724
    )Cash dividends paid
    
    
    (410,785
    )
    
    
    (343,845
    )Net cash used by financing activities
    
    
    (3,330,321
    )
    
    
    (4,895,602
    )Net change in cash and cash equivalents
    
    
    (6,335,070
    )
    
    
    (5,119,261
    )Cash and cash equivalents at beginning of period
    
    
    16,649,976
    
    
    
    15,644,292Cash and cash equivalents at end of period
    
    $
    10,314,906
    
    
    $
    10,525,031Supplemental disclosuresInterest paid
    
    $
    1,403,819
    
    
    $
    1,068,566Income taxes paid
    
    
    100,000
    
    
    $
    
  6.




---



##### Table of Contents



NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    STOCK-BASED COMPENSATION
 Share-Based Payment
  March 31,2005Net income, as reported
    
    $
    666,813Deduct: Total stock-based employee compensation
expense determined under fair value based
method for all awards, net of related tax effects
    
    
    2,800Pro forma net income
    
    $
    664,013Earnings per shareBasic  as reported
    
    $
    .25Basic  pro forma
    
    $
    .25Diluted  as reported
    
    $
    .25Diluted  pro forma
    
    $
    .25
 7.




---



##### Table of Contents



NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-continued
  2004
    
    
    
    2003Risk-free interest rate
    
    
    3.34%
    
    
    
    2.75%Expected option life (years)
    
    
    3.5
    
    
    
    6.4Dividend yield
    
    
    2.60%
    
    
    
    2.50%
    NOTE 2
 SECURITIES
  March 31, 2006
 Gross
    
    
    GrossAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    FairCost
    
    
    gains
    
    
    losses
    
    
    valueAvailable-for-sale:U.S. Treasury security
    
    $
    99,951
    
    
    $
    
    
    
    $
    1,326
    
    
    $
    98,625Obligations of U.S.
government
corporations and agencies
    
    
    42,491,628
    
    
    
    
    
    
    
    956,620
    
    
    
    41,535,008Mortgage-backed securities
    
    
    25,919,257
    
    
    
    342
    
    
    
    577,172
    
    
    
    25,342,427Obligations of states and
political subdivisions
    
    
    8,390,031
    
    
    
    192,620
    
    
    
    2,183
    
    
    
    8,580,468Total debt securities
    
    
    76,900,867
    
    
    
    192,962
    
    
    
    1,537,301
    
    
    
    75,556,528Equity Securities
    
    
    305,965
    
    
    
    171
    
    
    
    5,977
    
    
    
    300,159Total available-for-sale
    
    
    77,206,832
    
    
    
    193,133
    
    
    
    1,543,278
    
    
    
    75,856,687Restricted stock
    
    
    2,984,900
    
    
    
    
    
    
    
    
    
    
    
    2,984,900Total securities
    
    $
    80,191,732
    
    
    $
    193,133
    
    
    $
    1,543,278
    
    
    $
    78,841,587
 8.




---



##### Table of Contents



NOTE 2
 SECURITIES- continued
 December 31, 2005
 Gross
    
    
    GrossAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    FairCost
    
    
    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    99,938
    
    
    $
    
    
    
    $
    1,313
    
    
    $
    98,625Obligations of U.S.
government
corporations and agencies
    
    
    42,991,204
    
    
    
    4,376
    
    
    
    765,254
    
    
    
    42,230,326Mortgage-backed securities
    
    
    27,368,053
    
    
    
    14,166
    
    
    
    376,262
    
    
    
    27,005,957Obligations of states and
political subdivisions
    
    
    8,392,840
    
    
    
    242,499
    
    
    
    1,943
    
    
    
    8,633,396Total debt securities
    
    
    78,852,035
    
    
    
    261,041
    
    
    
    1,144,772
    
    
    
    77,968,304Equity Securities
    
    
    304,376
    
    
    
    6,080
    
    
    
    5,512
    
    
    
    304,944Total available-for-sale
    
    
    79,156,411
    
    
    
    267,121
    
    
    
    1,150,284
    
    
    
    78,273,248Restricted stock
    
    
    2,947,000
    
    
    
    
    
    
    
    
    
    
    
    2,947,000Total securities
    
    $
    82,103,411
    
    
    $
    267,121
    
    
    $
    1,150,284
    
    
    $
    81,220,248
 NOTE 3  RECENT ACCOUNTING PRONOUNCEMENTS
 Accounting for Certain Hybrid Instruments, as an amendment of FASB
Statements No. 133 and 140
 Accounting for Servicing of Financial Assets
 9.




---



##### Table of Contents



ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  FORWARD-LOOKING STATEMENTS
   FINANCIAL CONDITION
  10.




---



##### Table of Contents



11.




---



##### Table of Contents



RESULTS OF OPERATIONS  Three months ended March 31, 2006 and 2005
      12.




---



##### Table of Contents



13.




---



##### Table of Contents



ITEM 3  QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
   March 31, 2006
 Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    
    $
    14,229
    
    
    $
    856
    
    
    
    6.4
    %+100
    
    
    
    13,756
    
    
    
    384
    
    
    
    2.90
    
    
    
    13,373
    
    
    
    0
    
    
    
    0.0-100
    
    
    
    13,058
    
    
    
    (315
    )
    
    
    (2.4
    )-200
    
    
    
    12,582
    
    
    
    (791
    )
    
    
    (5.9
    )
 December 31, 2005
 Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    
    $
    15,042
    
    
    $
    1,198
    
    
    
    8.7
    %+100
    
    
    
    14,387
    
    
    
    544
    
    
    
    3.90
    
    
    
    13,844
    
    
    
    0
    
    
    
    0.0-100
    
    
    
    13,383
    
    
    
    (461
    )
    
    
    (3.3
    )-200
    
    
    
    12,741
    
    
    
    (1,103
    )
    
    
    (8.0
    )
 14.




---



##### Table of Contents



ITEM 4
 CONTROLS AND PROCEDURES
     CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
  15.




---



##### Table of Contents



ITEM 1   LEGAL PROCEEDINGS
  
 ITEM 1A   RISK FACTORS
  
 ITEM 2   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
   MaximumTotal Number of
    
    Number of SharesTotal Number
    
    Average
    
    Shares Purchased
    
    that May Yet beof Shares
    
    Price Paid
    
    as Part of Publicly
    
    Purchased UnderPeriod
    
    Purchased
    
    Per Share
    
    Announced Plans
    
    the PlanJanuary 1, 2006 to
January 31, 2006
    
    None
    
    None
    
    None
    
    
    198,027February 1, 2006 to
February 28, 2006
    
    
    11,094
    
    
    $
    21.25
    
    
    
    11,094
    
    
    
    186,933March 1, 2006 to
March 31, 2006
    
    None
    
    None
    
    None
    
    
    186,933
  
 ITEM 3   DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 ITEM 5   OTHER INFORMATION
  16.




---



##### Table of Contents



Item 6   Exhibits:
 ExhibitNumber
    
    Description of Document11
    
    Statement Regarding Computation of Per Share Earnings
(reference is hereby made to Consolidated Statements of Income on page 4
hereof.)31.1
    
    Rule 13a-14(a)/15d-14(a) CEOs Certification31.2
    
    Rule 13a-14(a)/15d-14(a) CFOs Certification32.1
    
    Section 1350 CEOs Certification32.2
    
    Section 1350 CFOs Certification
 17.




---



##### Table of Contents



CSB BANCORP, INC.(Registrant)Date: May 12, 2006
    
    /s/ Eddie L. SteinerEddie L. SteinerPresidentChief Executive OfficerDate: May 12, 2006
    
    /s/ Paula J. MeilerPaula J. MeilerSenior Vice PresidentChief Financial Officer
 18.




---



##### Table of Contents



Exhibit
    
    
    
    SequentialNumber
    
    Description of Document
    
    Page11
    
    Statement Regarding Computation of Per Share
Earnings (reference is hereby made to Consolidated Statements of
Income on page 4 hereof.)31.1
    
    Rule 13a-14(a)/15d-14(a) CEOs Certification31.2
    
    Rule 13a-14(a)/15d-14(a) CFOs Certification32.1
    
    Section 1350 CEOs Certification32.2
    
    Section 1350 CFOs Certification
 19.