##### Table of Contents



CSB BANCORP, INC.
 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, 2011
 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
  Large accelerated filer o
Accelerated filer o
Non-accelerated filer o
(Do not check if a smaller reporting company)Smaller reporting
company þ
  o þ
  Common stock, $6.25 par value
    
    Outstanding at May 13, 2011 :2,734,799 common shares




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##### 



PagePart I  Financial InformationITEM 1   FINANCIAL STATEMENTS (Unaudited)Consolidated Balance Sheets
    
    
    3Consolidated Statements of Income
    
    
    4Condensed Consolidated Statements of Changes in Shareholders Equity
    
    
    5Condensed Consolidated Statements of Cash Flows
    
    
    6Notes to the Consolidated Financial Statements
    
    
    7ITEM 2   MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
    
    
    22ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
    
    
    27ITEM 4T  CONTROLS AND PROCEDURES
    
    
    27Part II  Other InformationITEM 1   Legal Proceedings
    
    
    291A  Risk Factors
    
    
    292  Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    293  Defaults upon Senior Securities
    
    
    294  Removed and Reserved
    
    
    295  Other Information
    
    
    296  Exhibits
    
    
    30Signatures
    
    
    31EX-11EX-31.1EX-31.2EX-32.1EX-32.2




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March 31,
    
    
    December 31,(Dollars in thousands)
    
    2011
    
    
    2010ASSETSCash and cash equivalentsCash and due from banks
    
    $
    9,792
    
    
    $
    9,798Interest-earning deposits in other banks
    
    
    11,898
    
    
    
    38,497Federal funds sold
    
    
    310
    
    
    
    65Total cash and cash equivalents
    
    
    22,000
    
    
    
    48,360SecuritiesAvailable-for-sale, at fair value
    
    
    83,085
    
    
    
    75,204Restricted stock, at cost
    
    
    5,463
    
    
    
    5,463Total securities
    
    
    88,548
    
    
    
    80,667Loans held for sale
    
    
    20
    
    
    
    Loans
    
    
    322,017
    
    
    
    315,647Less allowance for loan losses
    
    
    4,028
    
    
    
    4,031Net loans
    
    
    317,989
    
    
    
    311,616Premises and equipment, net
    
    
    7,754
    
    
    
    7,878Core deposit intangible
    
    
    391
    
    
    
    406Goodwill
    
    
    1,725
    
    
    
    1,725Bank-owned life insurance
    
    
    2,987
    
    
    
    2,961Accrued interest receivable and other assets
    
    
    3,947
    
    
    
    3,443TOTAL ASSETS
    
    $
    445,361
    
    
    $
    457,056LIABILITIES AND SHAREHOLDERS EQUITYLIABILITIESDepositsNoninterest-bearing
    
    $
    60,325
    
    
    $
    69,151Interest-bearing
    
    
    287,884
    
    
    
    284,340Total deposits
    
    
    348,209
    
    
    
    353,491Short-term borrowings
    
    
    28,382
    
    
    
    32,018Other borrowings
    
    
    19,707
    
    
    
    22,909Accrued interest payable and other liabilities
    
    
    1,606
    
    
    
    1,484Total liabilities
    
    
    397,904
    
    
    
    409,902SHAREHOLDERS EQUITYCommon stock, $6.25 par value. Authorized
9,000,000 shares; issued 2,980,602 shares;
outstanding 2,734,799 shares in 2011 and 2010
    
    
    18,629
    
    
    
    18,629Additional paid-in capital
    
    
    9,994
    
    
    
    9,994Retained earnings
    
    
    23,077
    
    
    
    22,673Treasury
stock at cost  245,803 shares in 2011 and 2010
    
    
    (5,015
    )
    
    
    (5,015
    )Accumulated other comprehensive income
    
    
    772
    
    
    
    873Total shareholders equity
    
    
    47,457
    
    
    
    47,154TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    445,361
    
    
    $
    457,056
  3.




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Three Months EndedMarch 31,(Dollars in thousands, except per share data)
    
    2011
    
    
    2010INTEREST AND DIVIDEND INCOMELoans, including fees
    
    $
    4,236
    
    
    $
    4,302Taxable securities
    
    
    595
    
    
    
    751Nontaxable securities
    
    
    98
    
    
    
    84Other
    
    
    17
    
    
    
    19Total interest and dividend income
    
    
    4,946
    
    
    
    5,156INTEREST EXPENSEDeposits
    
    
    786
    
    
    
    876Other borrowings
    
    
    226
    
    
    
    399Total interest expense
    
    
    1,012
    
    
    
    1,275NET INTEREST INCOME
    
    
    3,934
    
    
    
    3,881PROVISION FOR LOAN LOSSES
    
    
    280
    
    
    
    519Net interest income, after provision for loan losses
    
    
    3,654
    
    
    
    3,362NONINTEREST INCOMEService charges on deposit accounts
    
    
    245
    
    
    
    269Trust services
    
    
    160
    
    
    
    142Debit card interchange fees
    
    
    138
    
    
    
    108Gain on sale of loans, net
    
    
    70
    
    
    
    46Other
    
    
    148
    
    
    
    166Total noninterest income
    
    
    761
    
    
    
    731NONINTEREST EXPENSESSalaries and employee benefits
    
    
    1,763
    
    
    
    1,604Occupancy expense
    
    
    219
    
    
    
    220Equipment expense
    
    
    120
    
    
    
    126Professional fees
    
    
    159
    
    
    
    154Franchise tax expense
    
    
    135
    
    
    
    135Software expense
    
    
    91
    
    
    
    95Marketing and public relations
    
    
    59
    
    
    
    71Amortization of intangible assets
    
    
    15
    
    
    
    16Other expenses
    
    
    559
    
    
    
    620Total noninterest expenses
    
    
    3,120
    
    
    
    3,041Income before income taxes
    
    
    1,295
    
    
    
    1,052FEDERAL INCOME TAX PROVISION
    
    
    399
    
    
    
    315NET INCOME
    
    $
    896
    
    
    $
    737Basic and diluted net income per share
    
    $
    0.33
    
    
    $
    0.27
  4.




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Three Months EndedMarch 31,(Dollars in thousands, except per share data)
    
    2011
    
    
    2010Balance at beginning of period
    
    $
    47,154
    
    
    $
    45,822Comprehensive income:Net income
    
    
    896
    
    
    
    737Change in net unrealized gain (loss),
net of reclassification adjustments
and related income taxes of ($52) and
$54, respectively
    
    
    (101
    )
    
    
    104Total comprehensive income
    
    
    795
    
    
    
    841Cash dividends declared
($0.18 per share in 2011 and 2010)
    
    
    (492
    )
    
    
    (492
    )Balance at end of period
    
    $
    47,457
    
    
    $
    46,171
  5.




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Three Months EndedMarch 31,(Dollars in thousands, except per share data)
    
    2011
    
    
    2010NET CASH FROM OPERATING ACTIVITIES
    
    $
    1,041
    
    
    $
    (113
    )CASH FLOWS FROM INVESTING ACTIVITESSecurities available-for-sale:Proceeds from maturities and repayments
    
    
    4,240
    
    
    
    13,560Purchases
    
    
    (12,344
    )
    
    
    (6,551
    )Loan originations, net of repayments
    
    
    (6,679
    )
    
    
    2,044Proceeds from sale of other real estate
    
    
    8
    
    
    
    215Property, equipment, and software acquisitions
    
    
    (517
    )
    
    
    (7
    )Net cash provided by (used in) investing activities
    
    
    (15,292
    )
    
    
    9,261CASH FLOWS FROM FINANCING ACTIVITIESNet change in deposits
    
    
    (5,271
    )
    
    
    (3,256
    )Net change in short-term borrowings
    
    
    (3,636
    )
    
    
    857Repayments of other borrowings
    
    
    (3,202
    )
    
    
    (12,728
    )Net cash provided by used in financing activities
    
    
    (12,109
    )
    
    
    (15,127
    )NET DECREASE IN CASH AND CASH
EQUIVALENTS
    
    
    (26,360
    )
    
    
    (5,979
    )CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD
    
    
    48,360
    
    
    
    42,661CASH AND CASH EQUIVALENTS AT END OF PERIOD
    
    $
    22,000
    
    
    $
    36,682SUPPLEMENTAL DISCLOSURESCash paid during the year for:Interest
    
    $
    1,042
    
    
    $
    1,403Income taxes
    
    
    50
    
    
    
    250Noncash investing activities:Transfer of loans to other real estate owned
    
    
    
    
    
    
    301
  6.




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NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
 Fair Value Measurements and Disclosures (Topic
820): Improving Disclosures about Fair Value Measurements
 Receivables (Topic 310): Disclosures about the Credit
Quality of Financing Receivables and the Allowance for Credit Losses.
 7.




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NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 When to Perform Step 2 of the Goodwill Impairment
Test for Reporting Units with Zero or Negative Carrying Amounts
 Disclosure of Supplementary Pro Forma Information
for Business Combinations
 Receivables (Topic 310): A Creditors Determination of
Whether a Restructuring Is a Troubled Debt Restructuring
 8.




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NOTE 2  SECURITIES
  Gross
    
    
    GrossAmortized
    
    
    unrealized
    
    
    unrealized(Dollars in thousands)
    
    cost
    
    
    gains
    
    
    losses
    
    
    Fair valueMarch 31, 2011Available-for-sale:U.S. Treasury security
    
    $
    100
    
    
    $
    
    
    
    $
    
    
    
    $
    100Obligations of U.S. Government
corporations and agencies
    
    
    25,992
    
    
    
    15
    
    
    
    299
    
    
    
    25,708Mortgage-backed securites in
government sponsored entities
    
    
    42,323
    
    
    
    1,270
    
    
    
    120
    
    
    
    43,473Obligations of states and political
subdivisions
    
    
    12,431
    
    
    
    352
    
    
    
    35
    
    
    
    12,748Corporate bonds
    
    
    1,000
    
    
    
    
    
    
    
    2
    
    
    
    998Total debt securities
    
    
    81,846
    
    
    
    1,637
    
    
    
    456
    
    
    
    83,027Equity securities in financial
institutions
    
    
    69
    
    
    
    3
    
    
    
    14
    
    
    
    58Total available-for-sale
    
    
    81,915
    
    
    
    1,640
    
    
    
    470
    
    
    
    83,085Restricted stock
    
    
    5,463
    
    
    
    
    
    
    
    
    
    
    
    5,463Total securities
    
    $
    87,378
    
    
    $
    1,640
    
    
    $
    470
    
    
    $
    88,548December 31, 2010Available-for-sale:U.S. Treasury security
    
    $
    100
    
    
    $
    
    
    
    $
    
    
    
    $
    100Obligations of U.S. Government
corporations and agencies
    
    
    20,009
    
    
    
    8
    
    
    
    306
    
    
    
    19,711Mortgage-backed securites in
government sponsored entities
    
    
    41,005
    
    
    
    1,374
    
    
    
    28
    
    
    
    42,351Obligations of states and political
subdivisions
    
    
    11,699
    
    
    
    341
    
    
    
    46
    
    
    
    11,994Corporate bonds
    
    
    1,000
    
    
    
    
    
    
    
    8
    
    
    
    992Total debt securities
    
    
    73,813
    
    
    
    1,723
    
    
    
    388
    
    
    
    75,148Equity securities in financial
institutions
    
    
    69
    
    
    
    3
    
    
    
    16
    
    
    
    56Total available-for-sale
    
    
    73,882
    
    
    
    1,726
    
    
    
    404
    
    
    
    75,204Restricted stock
    
    
    5,463
    
    
    
    
    
    
    
    
    
    
    
    5,463Total securities
    
    $
    79,345
    
    
    $
    1,726
    
    
    $
    404
    
    
    $
    80,667
 9.




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##### Table of Contents



NOTE 2  SECURITIES
  Due in one year or less
    
    $
    1,978
    
    
    $
    1,988Due after one through five years
    
    
    7,487
    
    
    
    7,633Due after five through ten years
    
    
    19,908
    
    
    
    20,163Due after ten years
    
    
    52,473
    
    
    
    53,243Total debt securities available-for-sale
    
    $
    81,846
    
    
    $
    83,027
 Realized Gains and Losses
   10.




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NOTE 2  SECURITIES
  Securities in a continuous unrealized loss positionLess than 12 months
    
    
    12 months or more
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    Grossunrealized
    
    
    Fair
    
    
    unrealized
    
    
    Fair
    
    
    unrealized
    
    
    Fair(Dollars in thousands)
    
    losses
    
    
    value
    
    
    losses
    
    
    value
    
    
    losses
    
    
    valueMarch 31, 2011Obligations of U.S. Corporations
and agencies
    
    $
    299
    
    
    $
    13,692
    
    
    $
    
    
    
    $
    
    
    
    $
    299
    
    
    $
    13,692Mortgage-backed securities in
government sponsored entities
    
    
    111
    
    
    
    7,945
    
    
    
    9
    
    
    
    394
    
    
    
    120
    
    
    
    8,339Obligations of state & political
subdivisions
    
    
    35
    
    
    
    2,569
    
    
    
    
    
    
    
    
    
    
    
    35
    
    
    
    2,569Corporate bonds
    
    
    2
    
    
    
    498
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    498Total debt securities
    
    
    447
    
    
    
    24,704
    
    
    
    9
    
    
    
    394
    
    
    
    456
    
    
    
    25,098Equity securities in financial
institutions
    
    
    
    
    
    
    
    
    
    
    14
    
    
    
    40
    
    
    
    14
    
    
    
    40Total temporarily impaired
securities
    
    $
    447
    
    
    $
    24,704
    
    
    $
    23
    
    
    $
    434
    
    
    $
    470
    
    
    $
    25,138December 31, 2010Obligations of U.S. Corporations
and agencies
    
    $
    306
    
    
    $
    12,686
    
    
    $
    
    
    
    $
    
    
    
    $
    306
    
    
    $
    12,686Mortgage-backed securities in
government sponsored entities
    
    
    14
    
    
    
    4,032
    
    
    
    14
    
    
    
    493
    
    
    
    28
    
    
    
    4,525Obligations of state & political
subdivisions
    
    
    46
    
    
    
    2,561
    
    
    
    
    
    
    
    
    
    
    
    46
    
    
    
    2,561Corporate bonds
    
    
    8
    
    
    
    492
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    492Total debt securities
    
    
    374
    
    
    
    19,771
    
    
    
    14
    
    
    
    493
    
    
    
    388
    
    
    
    20,264Equity securities in financial
institutions
    
    
    
    
    
    
    
    
    
    
    16
    
    
    
    38
    
    
    
    16
    
    
    
    38Total temporarily impaired
securities
    
    $
    374
    
    
    $
    19,771
    
    
    $
    30
    
    
    $
    531
    
    
    $
    404
    
    
    $
    20,302
  11.




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NOTE 3  LOANS
   (Dollars in thousands)
    
    March 31, 2011
    
    
    December 31, 2010Commercial
    
    $
    85,778
    
    
    $
    78,540Commercial real estate
    
    
    105,839
    
    
    
    104,829Residential real estate
    
    
    107,053
    
    
    
    108,832Consumer
    
    
    6,850
    
    
    
    6,715Construction & Land Development
    
    
    16,297
    
    
    
    16,515Total loans before deferred costs
    
    
    321,817
    
    
    
    315,431Deferred loan costs
    
    
    200
    
    
    
    216Total Loans
    
    $
    322,017
    
    
    $
    315,647
 Loan Origination/Risk Management
     12.




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NOTE 3  LOANS
    Concentrations of Credit
   Three Months Ended March 31,(Dollars in thousands)
    
    2011
    
    
    2010Beginning balance
    
    $
    4,031
    
    
    $
    4,060Provision for loan losses
    
    
    280
    
    
    
    519Loans charged-off
    
    
    (316
    )
    
    
    (289
    )Recoveries
    
    
    33
    
    
    
    66Ending balance
    
    $
    4,028
    
    
    $
    4,356
 13.




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NOTE 3  LOANS
  ConstructionCommercial
    
    
    Residential
    
    
    
    
    
    
    & Land(Dollars in thousands)
    
    Commercial
    
    
    Real Estate
    
    
    Real Estate
    
    
    Consumer
    
    
    Development
    
    
    Unallocated
    
    
    TotalMarch 31, 2011Beginning balance
    
    $
    1,179
    
    
    $
    1,183
    
    
    $
    1,057
    
    
    $
    80
    
    
    $
    213
    
    
    $
    319
    
    
    $
    4,031Provision for possible loan losses
    
    
    11
    
    
    
    330
    
    
    
    69
    
    
    
    33
    
    
    
    (55
    )
    
    
    (108
    )
    
    
    280Charge-offs
    
    
    (204
    )
    
    
    
    
    
    
    (68
    )
    
    
    (44
    )
    
    
    
    
    
    
    
    
    
    
    (316
    )Recoveries
    
    
    10
    
    
    
    
    
    
    
    9
    
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    33Net charge-offs
    
    
    (194
    )
    
    
    
    
    
    
    (59
    )
    
    
    (30
    )
    
    
    
    
    
    
    
    
    
    
    (283
    )Ending balance
    
    $
    996
    
    
    $
    1,513
    
    
    $
    1,067
    
    
    $
    83
    
    
    $
    158
    
    
    $
    211
    
    
    $
    4,028
 14.




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NOTE 3  LOANS
  ConstructionCommercial
    
    Residential
    
    
    
    
    
    & Land(Dollars in thousands)
    
    Commercial
    
    Real Estate
    
    Real Estate
    
    Consumer
    
    Development
    
    Unallocated
    
    TotalMarch 31, 2011Allowance for loan losses:Ending allowance balances
attributable to loans:Individually evaluated
for impairment
    
    $
    102
    
    
    $
    462
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    564Collectively evaluated
for impairment
    
    
    894
    
    
    
    1,051
    
    
    
    1,067
    
    
    
    83
    
    
    
    158
    
    
    
    211
    
    
    
    3,464Acquired with deteriorated
credit quality
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total ending allowance balance
    
    $
    996
    
    
    $
    1,513
    
    
    $
    1,067
    
    
    $
    83
    
    
    $
    158
    
    
    $
    211
    
    
    $
    4,028Loans:Loans indvidually evaluated
for impairment
    
    $
    450
    
    
    $
    3,187
    
    
    $
    48
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    3,685Loans collectively evaluated
for impairment
    
    
    85,328
    
    
    
    102,652
    
    
    
    107,005
    
    
    
    6,850
    
    
    
    15,907
    
    
    
    
    
    
    
    317,742Loans acquired with deteriorated
credit quality
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    390
    
    
    
    
    
    
    
    390Total ending loans balance
    
    $
    85,778
    
    
    $
    105,839
    
    
    $
    107,053
    
    
    $
    6,850
    
    
    $
    16,297
    
    
    $
    
    
    
    $
    321,817December 31, 2010Allowance for loan losses:Ending allowance balances
attributable to loans:Individually evaluated
for impairment
    
    $
    106
    
    
    $
    132
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    238Collectively evaluated
for impairment
    
    
    1,073
    
    
    
    1,051
    
    
    
    1,057
    
    
    
    80
    
    
    
    121
    
    
    
    319
    
    
    
    3,701Acquired with deteriorated
credit quality
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    92
    
    
    
    
    
    
    
    92Total ending allowance balance
    
    $
    1,179
    
    
    $
    1,183
    
    
    $
    1,057
    
    
    $
    80
    
    
    $
    213
    
    
    $
    319
    
    
    $
    4,031Loans:Loans indvidually evaluated
for impairment
    
    $
    621
    
    
    $
    886
    
    
    $
    299
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    1,806Loans collectively evaluated
for impairment
    
    
    77,919
    
    
    
    103,943
    
    
    
    108,533
    
    
    
    6,715
    
    
    
    16,075
    
    
    
    
    
    
    
    313,185Loans acquired with deteriorated
credit quality
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    440
    
    
    
    
    
    
    
    440Total ending loans balance
    
    $
    78,540
    
    
    $
    104,829
    
    
    $
    108,832
    
    
    $
    6,715
    
    
    $
    16,515
    
    
    $
    
    
    
    $
    315,431
 15.




---



##### Table of Contents



NOTE 3  LOANS
  Recorded
    
    
    RecordedUnpaid
    
    
    Investment
    
    
    Investment
    
    
    Total
    
    
    
    
    
    AveragePrincipal
    
    
    with no
    
    
    with
    
    
    Recorded
    
    
    Related
    
    
    Recorded(Dollars in thousands)
    
    Balance
    
    
    Allowance
    
    
    Allowance
    
    
    Investment
    
    
    Allowance
    
    
    InvestmentMarch 31, 2011Commercial
    
    $
    553
    
    
    $
    186
    
    
    $
    264
    
    
    $
    450
    
    
    $
    101
    
    
    $
    502Commercial real estate
    
    
    3,759
    
    
    
    602
    
    
    
    2,585
    
    
    
    3,187
    
    
    
    463
    
    
    
    3,262Residential real estate
    
    
    65
    
    
    
    48
    
    
    
    
    
    
    
    48
    
    
    
    
    
    
    
    48Construction & land development
    
    
    638
    
    
    
    390
    
    
    
    
    
    
    
    390
    
    
    
    
    
    
    
    415Total impaired loans
    
    $
    5,015
    
    
    $
    1,226
    
    
    $
    2,849
    
    
    $
    4,075
    
    
    $
    564
    
    
    $
    4,227December 31, 2010Commercial
    
    $
    644
    
    
    $
    51
    
    
    $
    571
    
    
    $
    622
    
    
    $
    106
    
    
    $
    571Commercial real estate
    
    
    1,047
    
    
    
    109
    
    
    
    777
    
    
    
    886
    
    
    
    132
    
    
    
    1,631Residential real estate
    
    
    590
    
    
    
    298
    
    
    
    
    
    
    
    298
    
    
    
    
    
    
    
    97Construction & land development
    
    
    683
    
    
    
    
    
    
    
    440
    
    
    
    440
    
    
    
    92
    
    
    
    483Total impaired loans
    
    $
    2,964
    
    
    $
    458
    
    
    $
    1,788
    
    
    $
    2,246
    
    
    $
    330
    
    
    $
    2,782
  Total30 - 59
    
    
    60 - 89
    
    
    
    
    
    
    Past DueDays
    
    
    Days
    
    
    90 Days +
    
    
    and
    
    
    Non-
    
    
    Total(Dollars in thousands)
    
    Current
    
    
    Past Due
    
    
    Past Due
    
    
    Past Due
    
    
    Accruing
    
    
    Accrual
    
    
    LoansMarch 31, 2011Commercial
    
    $
    85,521
    
    
    $
    118
    
    
    $
    19
    
    
    $
    100
    
    
    $
    237
    
    
    $
    20
    
    
    $
    85,778Commercial real estate
    
    
    103,658
    
    
    
    136
    
    
    
    401
    
    
    
    27
    
    
    
    564
    
    
    
    1,617
    
    
    
    105,839Residential real estate
    
    
    103,943
    
    
    
    779
    
    
    
    582
    
    
    
    242
    
    
    
    1,603
    
    
    
    1,507
    
    
    
    107,053Consumer
    
    
    6,788
    
    
    
    39
    
    
    
    23
    
    
    
    
    
    
    
    62
    
    
    
    
    
    
    
    6,850Construction & land development
    
    
    15,894
    
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    400
    
    
    
    16,297Total Loans
    
    $
    315,804
    
    
    $
    1,075
    
    
    $
    1,025
    
    
    $
    369
    
    
    $
    2,469
    
    
    $
    3,544
    
    
    $
    321,817December 31, 2010Commercial
    
    $
    78,235
    
    
    $
    63
    
    
    $
    160
    
    
    $
    58
    
    
    $
    281
    
    
    $
    24
    
    
    $
    78,540Commercial real estate
    
    
    100,914
    
    
    
    2,156
    
    
    
    114
    
    
    
    26
    
    
    
    2,296
    
    
    
    1,619
    
    
    
    104,829Residential real estate
    
    
    105,593
    
    
    
    574
    
    
    
    253
    
    
    
    601
    
    
    
    1,428
    
    
    
    1,811
    
    
    
    108,832Consumer
    
    
    6,580
    
    
    
    69
    
    
    
    66
    
    
    
    
    
    
    
    135
    
    
    
    
    
    
    
    6,715Construction & land development
    
    
    16,061
    
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    451
    
    
    
    16,515Total Loans
    
    $
    307,383
    
    
    $
    2,865
    
    
    $
    593
    
    
    $
    685
    
    
    $
    4,143
    
    
    $
    3,905
    
    
    $
    315,431
 16.




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##### Table of Contents



NOTE 3  LOANS
 Troubled Debt Restructurings
  Credit Quality Indicators
   Pass
 Special Mention
 Substandard
 Doubtful
  17.




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##### Table of Contents



NOTE 3  LOANS
 Special(Dollars in thousands)
    
    Pass
    
    
    Mention
    
    
    Substandard
    
    
    Doubtful
    
    
    Not Rated
    
    
    TotalMarch 31, 2011Commercial
    
    $
    73,887
    
    
    $
    1,787
    
    
    $
    9,403
    
    
    $
    
    
    
    $
    701
    
    
    $
    85,778Commercial real estate
    
    
    87,313
    
    
    
    7,834
    
    
    
    8,253
    
    
    
    
    
    
    
    2,439
    
    
    
    105,839Residential real estate
    
    
    1,377
    
    
    
    
    
    
    
    358
    
    
    
    
    
    
    
    105,318
    
    
    
    107,053Consumer
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    6,849
    
    
    
    6,850Construction & land development
    
    
    10,921
    
    
    
    3,052
    
    
    
    954
    
    
    
    
    
    
    
    1,370
    
    
    
    16,297Total
    
    $
    173,498
    
    
    $
    12,673
    
    
    $
    18,969
    
    
    $
    
    
    
    $
    116,677
    
    
    $
    321,817December 31, 2010Commercial
    
    $
    65,371
    
    
    $
    3,843
    
    
    $
    9,252
    
    
    $
    
    
    
    $
    74
    
    
    $
    78,540Commercial real estate
    
    
    78,191
    
    
    
    9,982
    
    
    
    8,188
    
    
    
    
    
    
    
    8,468
    
    
    
    104,829Residential real estate
    
    
    1,153
    
    
    
    
    
    
    
    365
    
    
    
    
    
    
    
    107,314
    
    
    
    108,832Consumer
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    6,713
    
    
    
    6,715Construction & land development
    
    
    11,626
    
    
    
    2,905
    
    
    
    591
    
    
    
    
    
    
    
    1,393
    
    
    
    16,515Total
    
    $
    156,341
    
    
    $
    16,730
    
    
    $
    18,398
    
    
    $
    
    
    
    $
    123,962
    
    
    $
    315,431
  (Dollars in thousands)
    
    Performing
    
    
    Non-Performing
    
    
    TotalMarch 31, 2011Commercial
    
    $
    701
    
    
    $
    
    
    
    $
    701Commercial real estate
    
    
    2,439
    
    
    
    
    
    
    
    2,439Residential real estate
    
    
    103,568
    
    
    
    1,750
    
    
    
    105,318Consumer
    
    
    6,849
    
    
    
    
    
    
    
    6,849Construction & land development
    
    
    1,360
    
    
    
    10
    
    
    
    1,370Total
    
    $
    114,917
    
    
    $
    1,760
    
    
    $
    116,677December 31, 2010Commercial
    
    $
    74
    
    
    $
    
    
    
    $
    74Commercial real estate
    
    
    8,468
    
    
    
    
    
    
    
    8,468Residential real estate
    
    
    105,201
    
    
    
    2,133
    
    
    
    107,334Consumer
    
    
    6,713
    
    
    
    
    
    
    
    6,713Construction & land development
    
    
    1,383
    
    
    
    10
    
    
    
    1,393Total
    
    $
    121,839
    
    
    $
    2,143
    
    
    $
    123,982
  NOTE 4  FAIR VALUE MEASUREMENTS
  18.




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##### Table of Contents



NOTE 4  FAIR VALUE MEASUREMENTS
 Level I:
    
    Inputs to the valuation methodology are unadjusted quoted prices for
identical assets or liabilities in active markets that the Company has the ability
to access.Level II:
    
    Inputs to the valuation methodology include quoted prices for similar assets
or liabilities in active markets; quoted prices for identical or similar assets or
liabilities in inactive markets; inputs other than quoted prices that are observable
for the asset or liability; inputs that are derived principally from or corroborated by
observable market data by corroborated or other means. If the asset or liability has a
specified (contractual) term, the Level II input must be observable for substantially
the full term of the asset or liability.Level III:
    
    Inputs to the valuation methodology are unobservable and significant to the
fair value measurement.
  (Dollars in thousands)
    
    Level I
    
    
    Level II
    
    
    Level III
    
    
    TotalMarch 31, 2011Assets:Securities available-for-saleU.S. Treasury security
    
    $
    100
    
    
    $
    
    
    
    $
    
    
    
    $
    100Obligations of U.S. government corporations
and agencies
    
    
    
    
    
    
    25,708
    
    
    
    
    
    
    
    25,708Mortgage-backed securities in government
sponsored entities
    
    
    
    
    
    
    43,473
    
    
    
    
    
    
    
    43,473Obligations of states and political subdivisions
    
    
    
    
    
    
    12,748
    
    
    
    
    
    
    
    12,748Corporate bonds
    
    
    
    
    
    
    998
    
    
    
    
    
    
    
    998Total debt securities
    
    
    100
    
    
    
    82,927
    
    
    
    
    
    
    
    83,027Equity securities in financial institutions
    
    
    58
    
    
    
    
    
    
    
    
    
    
    
    58Total available-for-sale securities
    
    $
    158
    
    
    $
    82,927
    
    
    $
    
    
    
    $
    83,085December 31, 2010Assets:Securities available-for-saleU.S. Treasury security
    
    $
    100
    
    
    $
    
    
    
    $
    
    
    
    $
    100Obligations of U.S. government corporations
and agencies
    
    
    
    
    
    
    19,711
    
    
    
    
    
    
    
    19,711Mortgage-backed securities in government
sponsored entities
    
    
    
    
    
    
    42,351
    
    
    
    
    
    
    
    42,351Obligations of states and political subdivisions
    
    
    
    
    
    
    11,994
    
    
    
    
    
    
    
    11,994Corporate bonds
    
    
    
    
    
    
    992
    
    
    
    
    
    
    
    992Total debt securities
    
    
    100
    
    
    
    75,048
    
    
    
    
    
    
    
    75,148Equity securities in financial institutions
    
    
    56
    
    
    
    
    
    
    
    
    
    
    
    56Total available-for-sale securities
    
    $
    156
    
    
    $
    75,048
    
    
    $
    
    
    
    $
    75,204
 19.




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##### Table of Contents



NOTE 4  FAIR VALUE MEASUREMENTS
  (Dollars in thousands)
    
    Level I
    
    Level II
    
    Level III
    
    TotalMarch 31, 2011Assets measured on a nonrecurring basis:Impaired loans
    
    $
    
    
    
    $
    
    
    
    $
    3,511
    
    
    $
    3,511Other real estate owned
    
    
    
    
    
    
    
    
    
    
    30
    
    
    
    30Premises
    
    
    
    
    
    
    
    
    
    
    193
    
    
    
    193Mortgage servicing rights
    
    
    
    
    
    
    
    
    
    
    164
    
    
    
    164December 31, 2010Impaired loans
    
    $
    
    
    
    $
    
    
    
    $
    1,916
    
    
    $
    1,916Other real estate owned
    
    
    
    
    
    
    
    
    
    
    36
    
    
    
    36Premises
    
    
    
    
    
    
    
    
    
    
    200
    
    
    
    200Mortgage servicing rights
    
    
    
    
    
    
    
    
    
    
    155
    
    
    
    155
 NOTE 5  FAIR VALUES OF FINANCIAL INSTRUMENTS
  2011
    
    2010Carrying
    
    Fair
    
    Carrying
    
    Fair(Dollars in thousands)
    
    value
    
    value
    
    value
    
    valueFinancial assets:Cash and cash equivalents
    
    $
    22,000
    
    
    $
    22,000
    
    
    $
    48,360
    
    
    $
    48,360Securities
    
    
    88,548
    
    
    
    88,548
    
    
    
    80,667
    
    
    
    80,667Loans, net
    
    
    317,989
    
    
    
    322,450
    
    
    
    311,616
    
    
    
    316,474Accrued interest receivable
    
    
    1,443
    
    
    
    1,443
    
    
    
    1,215
    
    
    
    1,215Financial liabilities:Deposits
    
    $
    348,209
    
    
    $
    350,083
    
    
    $
    353,491
    
    
    $
    355,589Short-term borrowings
    
    
    28,382
    
    
    
    28,382
    
    
    
    32,018
    
    
    
    32,018Other borrowings
    
    
    19,707
    
    
    
    19,497
    
    
    
    22,909
    
    
    
    23,042Accrued interest payable
    
    
    195
    
    
    
    195
    
    
    
    213
    
    
    
    213
 20.




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##### Table of Contents



NOTE 5  FAIR VALUES OF FINANCIAL INSTRUMENTS
  Cash and cash equivalents; Accrued interest receivable; Short term borrowings, Accrued interest
payable
  Securities
  Loans, net
  Deposits and Other Borrowed Funds
    21.




---



##### Table of Contents



ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  FORWARD-LOOKING STATEMENTS
   FINANCIAL CONDITION
   22.




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##### Table of Contents



March 31,
    
    December 31,
    
    March 31,(Dollars in thousands)
    
    2011
    
    2010
    
    2010Non-performing loans
    
    $
    3,913
    
    
    $
    4,589
    
    
    $
    6,221Other real estate
    
    
    30
    
    
    
    36
    
    
    
    271Allowance for loan losses
    
    
    4,028
    
    
    
    4,031
    
    
    
    4,356Total loans
    
    
    322,017
    
    
    
    315,647
    
    
    
    310,899Allowance: loans
    
    
    1.25
    %
    
    
    1.28
    %
    
    
    1.40
    %Allowance: non-performing loans
    
    
    1.0
    x
    
    
    0.9
    x
    
    
    0.7
    x
      23.




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##### Table of Contents



RESULTS OF OPERATIONS
 Three months ended March 31, 2011 and 2010
  Average Balance Sheets and Net Interest Margin Analysis
 For the three months ended March 31,2011
    
    
    2010Average
    
    
    Average
    
    
    Average
    
    
    Average(Dollars in thousands)
    
    balance
    
    
    rate
    
    
    balance
    
    
    rateASSETSDue from banks-interest bearing
    
    $
    23,321
    
    
    
    0.30
    %
    
    $
    31,185
    
    
    
    0.25
    %Federal funds sold
    
    
    90
    
    
    
    0.11
    
    
    
    186
    
    
    
    0.11Taxable securities
    
    
    73,941
    
    
    
    3.26
    
    
    
    69,650
    
    
    
    4.37Tax-exempt securities
    
    
    11,688
    
    
    
    5.12
    
    
    
    9,677
    
    
    
    5.31Loans
    
    
    319,646
    
    
    
    5.39
    
    
    
    311,789
    
    
    
    5.61Total earning assets
    
    
    428,686
    
    
    
    4.74
    %
    
    
    422,487
    
    
    
    5.00
    %Other assets
    
    
    22,980
    
    
    
    
    
    
    
    22,429TOTAL ASSETS
    
    $
    451,666
    
    
    
    
    
    
    $
    444,916LIABILITIES AND SHAREHOLDERS EQUITYInterest bearing demand deposits
    
    $
    52,341
    
    
    
    0.08
    %
    
    $
    53,946
    
    
    
    0.08
    %Savings deposits
    
    
    82,242
    
    
    
    0.27
    
    
    
    71,994
    
    
    
    0.39Time deposits
    
    
    149,844
    
    
    
    1.95
    
    
    
    148,665
    
    
    
    2.17Other borrowed funds
    
    
    53,092
    
    
    
    1.73
    
    
    
    69,901
    
    
    
    2.31Total interest bearing liabilities
    
    
    337,519
    
    
    
    1.22
    %
    
    
    344,506
    
    
    
    1.50
    %Non-interest bearing demand deposits
    
    
    65,147
    
    
    
    
    
    
    
    52,381Other liabilities
    
    
    1,613
    
    
    
    
    
    
    
    1,589Shareholders Equity
    
    
    47,387
    
    
    
    
    
    
    
    46,440TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    451,666
    
    
    
    
    
    
    $
    444,916Taxable equivalent net interest spread
    
    
    
    
    
    
    3.52
    %
    
    
    
    
    
    
    3.50
    %Taxable equivalent net interest margin
    
    
    
    
    
    
    3.78
    %
    
    
    
    
    
    
    3.78
    %
  24.




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##### Table of Contents



CAPITAL RESOURCES
  25.




---



##### Table of Contents



LIQUIDITY
  OFF-BALANCE SHEET ARRANGEMENTS
  26.




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##### Table of Contents



ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   March 31, 2011(Dollars in thousands)Change in
    
    Netinterest rates
    
    interest
    
    Dollar
    
    Percentage(basis points)
    
    income
    
    change
    
    change+ 300
    
    $
    16,784
    
    
    $
    205
    
    
    
    1.2
    %+ 200
    
    
    16,612
    
    
    
    33
    
    
    
    0.2+ 100
    
    
    16,583
    
    
    
    4
    
    
    
    0.00
    
    
    16,579
    
    
    
    
    
    
    
    - 100
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A
 December 31, 2010Change in
    
    Netinterest rates
    
    interest
    
    Dollar
    
    Percentage(basis points)
    
    income
    
    change
    
    change+ 300
    
    $
    16,275
    
    
    $
    443
    
    
    
    2.8
    %+ 200
    
    
    16,073
    
    
    
    241
    
    
    
    1.5+ 100
    
    
    15,906
    
    
    
    74
    
    
    
    0.50
    
    
    15,832
    
    
    
    
    
    
    
    - 100
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A
 
 ITEM 4T  CONTROLS AND PROCEDURES
  (a)
    
    information required to be disclosed by the Company in this Quarterly Report on
Form 10-Q would be accumulated and communicated to the Companys management, including
its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow
timely decisions regarding required disclosure;(b)
    
    information required to be disclosed by the Company in this Quarterly Report on
Form 10-Q would be recorded, processed, summarized and reported within the time periods
specified in the SECs rules and forms; and
 27.




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##### Table of Contents



ITEM 4T  CONTROLS AND PROCEDURES
 (c)
    
    the Companys disclosure controls and procedures are effective as of the end of
the period covered by this Quarterly Report on Form 10- Q to ensure that material
information relating to the Company and its consolidated subsidiary is made known to
them, particularly during the period for which our periodic reports, including this
Quarterly Report on Form 10-Q, are being prepared.
 CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
  28.




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##### Table of Contents



ITEM 1-
    
    LEGAL PROCEEDINGS
There are no matters required to be reported under this item.
 
 ITEM 1A-
    
    RISK FACTORS
There are no matters required to be reported under this item.
 
 ITEM 2-
    
    On July 7, 2005 CSB Bancorp, Inc. filed Form 8-k with the Securities and Exchange
Commission announcing that its Board of Directors approved a Stock Repurchase
Program authorizing the repurchase of up to 10% of the Companys common shares then
outstanding. Repurchases will be made from time to time as market and business
conditions warrant, in the open market, through block purchases and in negotiated
private
transactions.
 
 ITEM 3-
    
    DEFAULTS UPON SENIOR SECURITIES:
There are no matters required to be reported under this item.
 
 ITEM 4-
    
    REMOVED AND RESERVED:
 
 ITEM 5-
    
    OTHER INFORMATION:
There are no matters required to be reported under this item.
 29.




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##### Table of Contents



Item 6
    
    -Exhibits:
 ExhibitNumber
    
    Description of Document3.1
    
    Amended Articles of Incorporation of CSB Bancorp, Inc. (incorporated by reference to
Registrants Form 10-KSB for the Fiscal Year ended December 31, 1994).3.1.1
    
    Amended form of Article Fourth of Amended Articles of Incorporation, as effective April
9, 1998 (incorporated by reference to Registrants Form 10-K for the Fiscal Year ended
December 31, 1998).3.2
    
    Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to Registrants
Form 10-SB).3.2.1
    
    Amended Article VIII Code of Regulations of CSB Bancorp, Inc. (incorporated by
reference to Registrants Form DEF 14a for the Fiscal Year ended December 31, 2008).4.0
    
    Specimen stock certificate (incorporated by reference to Registrants Form 10-SB).11
    
    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
 30.




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##### Table of Contents



CSB BANCORP, INC.
(Registrant)Date: May 13, 2011
    /s/ Eddie L. SteinerEddie L. SteinerPresident
Chief Executive OfficerDate: May 13, 2011
    /s/ Paula J. MeilerPaula J. MeilerSenior Vice President
Chief Financial Officer 31.




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##### Table of Contents



ExhibitNumber
    
    Description of Document3.1
    
    Amended Articles of Incorporation of CSB Bancorp, Inc. (incorporated by reference to
Registrants Form 10-KSB for the Fiscal Year ended December 31, 1994).3.1.1
    
    Amended form of Article Fourth of Amended Articles of Incorporation, as effective April
9, 1998 (incorporated by reference to Registrants Form 10-K for the Fiscal Year ended
December 31, 1998).3.2
    
    Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to Registrants
Form 10-SB).3.2.1
    
    Amended Article VIII Code of Regulations of CSB Bancorp, Inc. (incorporated by
reference to Registrants Form DEF 14a for the Fiscal Year ended December 31, 2008).4.0
    
    Specimen stock certificate (incorporated by reference to Registrants Form 10-SB).11
    
    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
 32.