##### 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: September 30, 2010
 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)
 91 North Clay, P.O. Box 232, Millersburg, Ohio 44654
 (Registrants telephone 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 November 12, 2010:2,734,799 common shares




---



##### 



Part I  Financial InformationPageITEM 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 Consolidated Financial Statements
    
    
    7ITEM 2 - MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
    
    
    16ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
    
    
    23ITEM 4T  CONTROLS AND PROCEDURES
    
    
    24Part II  Other InformationITEM 1  Legal Proceedings
    
    
    251A  Risk Factors
    
    
    252  Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    253  Defaults upon Senior Securities
    
    
    254  Removed and Reserved
    
    
    255  Other Information
    
    
    256  Exhibits
    
    
    26Signatures
    
    
    27EX-11EX-31.1EX-31.2EX-32.1EX-32.2




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##### Table of Contents



September 30,
    
    
    December 31,(Dollars in thousands, except per share data)
    
    2010
    
    
    2009ASSETSCash and due from bank
    
    $
    10,017
    
    
    $
    8,803Interest-earning deposits in other banks
    
    
    33,267
    
    
    
    33,858Federal funds sold
    
    
    328
    
    
    
    Total cash and cash equivalents
    
    
    43,612
    
    
    
    42,661Securities
available-for-sale, at fair value
    
    
    72,501
    
    
    
    75,158Restricted stock, at cost
    
    
    5,463
    
    
    
    5,463Total securities
    
    
    77,964
    
    
    
    80,621Loans held for sale
    
    
    427
    
    
    
    340Loans
    
    
    316,909
    
    
    
    313,482Less allowance for loan losses
    
    
    4,407
    
    
    
    4,059Net loans
    
    
    312,502
    
    
    
    309,423Premises and equipment, net
    
    
    8,007
    
    
    
    8,354Bank owned life insurance
    
    
    2,933
    
    
    
    2,854Core deposit intangible
    
    
    423
    
    
    
    469Goodwill
    
    
    1,725
    
    
    
    1,725Accrued interest receivable and other assets
    
    
    3,609
    
    
    
    4,219Total Assets
    
    $
    451,586
    
    
    $
    450,666LIABILITIESDepositsNoninterest-bearing
    
    $
    63,988
    
    
    $
    53,974Interest-bearing
    
    
    277,308
    
    
    
    275,512Total deposits
    
    
    341,296
    
    
    
    329,486Short-term borrowings
    
    
    29,534
    
    
    
    28,764Other borrowings
    
    
    31,657
    
    
    
    45,010Accrued interest payable and other liabilities
    
    
    1,888
    
    
    
    1,584Total liabilities
    
    
    404,375
    
    
    
    404,844SHAREHOLDERS EQUITYCommon stock, $6.25 par value: Authorized 9,000,000
shares; issued 2,980,602 shares
    
    
    18,629
    
    
    
    18,629Additional
paid-in capital
    
    
    9,994
    
    
    
    9,994Retained earnings
    
    
    22,210
    
    
    
    21,146Treasury stock at cost: 245,803 shares
    
    
    (5,015
    )
    
    
    (5,015
    )Accumulated other comprehensive income
    
    
    1,393
    
    
    
    1,068Total shareholders equity
    
    
    47,211
    
    
    
    45,822Total Liabilities and Shareholders Equity
    
    $
    451,586
    
    
    $
    450,666
  3.




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##### Table of Contents



Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(Dollars in thousands, except per share data)
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Interest incomeLoans, including fees
    
    $
    4,384
    
    
    $
    4,566
    
    
    $
    12,971
    
    
    $
    13,769Taxable securities
    
    
    665
    
    
    
    776
    
    
    
    2,063
    
    
    
    2,461Nontaxable securities
    
    
    91
    
    
    
    84
    
    
    
    258
    
    
    
    232Other
    
    
    19
    
    
    
    8
    
    
    
    52
    
    
    
    17Total interest income
    
    
    5,159
    
    
    
    5,434
    
    
    
    15,344
    
    
    
    16,479Interest expenseDeposits
    
    
    889
    
    
    
    1,055
    
    
    
    2,641
    
    
    
    3,353Other
    
    
    313
    
    
    
    514
    
    
    
    1,032
    
    
    
    1,536Total interest expense
    
    
    1,202
    
    
    
    1,570
    
    
    
    3,673
    
    
    
    4,889Net interest income
    
    
    3,957
    
    
    
    3,864
    
    
    
    11,671
    
    
    
    11,590Provision for loan losses
    
    
    238
    
    
    
    293
    
    
    
    996
    
    
    
    928Net interest income after provision
for loan losses
    
    
    3,719
    
    
    
    3,571
    
    
    
    10,675
    
    
    
    10,662Non-interest incomeService charges on deposit accounts
    
    
    296
    
    
    
    313
    
    
    
    851
    
    
    
    931Trust and financial services
    
    
    135
    
    
    
    173
    
    
    
    401
    
    
    
    407Debit card interchange fees
    
    
    131
    
    
    
    101
    
    
    
    365
    
    
    
    283Gain on sale of loans
    
    
    62
    
    
    
    172
    
    
    
    153
    
    
    
    357Securities (losses) gains, net
    
    
    
    
    
    
    (34
    )
    
    
    148
    
    
    
    82Other income
    
    
    156
    
    
    
    145
    
    
    
    482
    
    
    
    386Total non-interest income
    
    
    780
    
    
    
    870
    
    
    
    2,400
    
    
    
    2,446Non-interest expensesSalaries and employee benefits
    
    
    1,751
    
    
    
    1,747
    
    
    
    5,100
    
    
    
    5,152Occupancy expense
    
    
    197
    
    
    
    266
    
    
    
    609
    
    
    
    740Equipment expense
    
    
    124
    
    
    
    131
    
    
    
    375
    
    
    
    403State franchise tax
    
    
    135
    
    
    
    135
    
    
    
    405
    
    
    
    371Professional and director fees
    
    
    133
    
    
    
    157
    
    
    
    457
    
    
    
    485FDIC deposit insurance
    
    
    109
    
    
    
    105
    
    
    
    417
    
    
    
    496Amortization of intangible assets
    
    
    15
    
    
    
    16
    
    
    
    47
    
    
    
    49Other expenses
    
    
    751
    
    
    
    631
    
    
    
    1,996
    
    
    
    1,831Total non-interest expenses
    
    
    3,215
    
    
    
    3,188
    
    
    
    9,406
    
    
    
    9,527Income before income taxes
    
    
    1,284
    
    
    
    1,253
    
    
    
    3,669
    
    
    
    3,581Federal income tax provision
    
    
    402
    
    
    
    395
    
    
    
    1,129
    
    
    
    1,121Net income
    
    $
    882
    
    
    $
    858
    
    
    $
    2,540
    
    
    $
    2,460Basic and diluted earnings per share
    
    $
    0.32
    
    
    $
    0.31
    
    
    $
    0.93
    
    
    $
    0.90
  4.




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Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Balance at beginning of period
    
    $
    46,776
    
    
    $
    44,678
    
    
    $
    45,822
    
    
    $
    43,468Comprehensive income :Net income
    
    
    882
    
    
    
    858
    
    
    
    2,540
    
    
    
    2,460Change in net unrealized
gain, net of reclassification
adjustments and related
income taxes $23, $274,
$167 and $578,
respectively
    
    
    45
    
    
    
    533
    
    
    
    325
    
    
    
    1,122Total comprehensive income
    
    
    927
    
    
    
    1,391
    
    
    
    2,865
    
    
    
    3,582Stock-based compensation expense
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    6Cash dividends declared
($0.18 and $0.54 per share in
2010 and 2009)
    
    
    (492
    )
    
    
    (492
    )
    
    
    (1,476
    )
    
    
    (1,476
    )Balance at end of period
    
    $
    47,211
    
    
    $
    45,580
    
    
    $
    47,211
    
    
    $
    45,580
  5.




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##### Table of Contents



Nine Months EndedSeptember 30,(Dollars in thousands, except per share data)
    
    2010
    
    
    2009Net cash from operating activities
    
    $
    3,486
    
    
    $
    3,378Cash flows from investing activitiesSecurities available-for-sale:Proceeds from maturities, calls and repayments
    
    
    36,211
    
    
    
    25,446Purchases
    
    
    (36,375
    )
    
    
    (20,979
    )Proceeds from sale of securities
    
    
    3,359
    
    
    
    1,305Purchase of Federal Reserve Bank stock
    
    
    
    
    
    
    (231
    )Proceeds from sale of other real estate
    
    
    342
    
    
    
    84Loan originations, net of repayments
    
    
    (4,452
    )
    
    
    844Premises and equipment expenditures, net
    
    
    (98
    )
    
    
    (633
    )Net cash provided by (used for) investing activities
    
    
    (1,013
    )
    
    
    5,836Cash flows from financing activitiesNet change in deposits
    
    
    11,874
    
    
    
    (2,374
    )Net change in short-term borrowings
    
    
    770
    
    
    
    4,165Repayment of other borrowings
    
    
    (13,181
    )
    
    
    (826
    )Cash dividends paid
    
    
    (985
    )
    
    
    (985
    )Net cash used for financing activities
    
    
    (1,522
    )
    
    
    (20
    )Net change in cash and cash equivalents
    
    
    951
    
    
    
    9,194Cash and cash equivalents at beginning of period
    
    
    42,661
    
    
    
    12,746Cash and cash equivalents at end of period
    
    $
    43,612
    
    
    $
    21,940Supplemental disclosuresInterest paid
    
    $
    3,978
    
    
    $
    5,380Income taxes paid
    
    
    850
    
    
    
    920
  6.




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##### Table of Contents



NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
 Accounting for Transfer of Financial Assets
 Receivables (Topic 310): Disclosures about the Credit
Quality of Financing Receivables and the Allowance for Credit Losses.
 Accounting for Technical Amendments to Various SEC
Rules and Schedules
 7.




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##### Table of Contents



RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (continued)
 Technical Corrections to SEC Paragraphs  An
announcement made by the staff of the U.S. Securities and Exchange Commission
 NOTE 2  SECURITIES
  September 30, 2010
    
    
    
    
    Gross unrealized
    
    
    Gross unrealized
    
    
    Fair(Dollars in thousands)
    
    Amortized Cost
    
    

    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    100
    
    
    $
    
    
    
    $
    
    
    
    $
    100Obligations of U.S.
government
corporations and agencies
    
    
    19,008
    
    
    
    113
    
    
    
    
    
    
    
    19,121Mortgage-backed securities
    
    
    38,610
    
    
    
    1,487
    
    
    
    25
    
    
    
    40,072Corporate bonds
    
    
    500
    
    
    
    
    
    
    
    8
    
    
    
    492Obligations of states and
political subdivisions
    
    
    12,103
    
    
    
    558
    
    
    
    
    
    
    
    12,661Total debt securities
    
    
    70,321
    
    
    
    2,158
    
    
    
    33
    
    
    
    72,446Equity Securities
    
    
    69
    
    
    
    1
    
    
    
    15
    
    
    
    55Total available-for-sale
    
    
    70,390
    
    
    
    2,159
    
    
    
    48
    
    
    
    72,501Restricted stock
    
    
    5,463
    
    
    
    
    
    
    
    
    
    
    
    5,463Total securities
    
    $
    75,853
    
    
    $
    2,159
    
    
    $
    48
    
    
    $
    77,964
 December 31, 2009
    
    
    
    
    
    Gross unrealized
    
    
    Gross unrealized
    
    
    Fair(Dollars in thousands)
    
    Amortized Cost
    
    
    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    100
    
    
    $
    
    
    
    $
    
    
    
    $
    100Obligations of U.S.
government
corporations and agencies
    
    
    14,164
    
    
    
    11
    
    
    
    142
    
    
    
    14,033Mortgage-backed securities
    
    
    49,706
    
    
    
    1,828
    
    
    
    176
    
    
    
    51,358Obligations of states and
political subdivisions
    
    
    9,505
    
    
    
    131
    
    
    
    22
    
    
    
    9,614Total debt securities
    
    
    73,475
    
    
    
    1,970
    
    
    
    340
    
    
    
    75,105Equity Securities
    
    
    65
    
    
    
    
    
    
    
    12
    
    
    
    53Total available-for-sale
    
    
    73,540
    
    
    
    1,970
    
    
    
    352
    
    
    
    75,158Restricted stock
    
    
    5,463
    
    
    
    
    
    
    
    
    
    
    
    5,463Total securities
    
    $
    79,003
    
    
    $
    1,970
    
    
    $
    352
    
    
    $
    80,621
 8.




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##### Table of Contents



NOTE 2  SECURITIES (continued)
  Available-for-sale
    
    Amortized Cost
    
    
    Fair ValueDue in one year or less
    
    $
    10,406
    
    
    $
    10,483Due after one through five years
    
    
    51,910
    
    
    
    53,498Due after five years through ten years
    
    
    7,106
    
    
    
    7,538Due after ten years
    
    
    899
    
    
    
    927Total debt securities available-for-sale
    
    $
    70,321
    
    
    $
    72,446
 Realized Gains and Losses
  Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,(Dollars in thousands)
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Proceeds
    
    $
    
    
    
    $
    8
    
    
    $
    3,359
    
    
    $
    1,305Realized gains
    
    $
    
    
    
    $
    1
    
    
    $
    148
    
    
    $
    153Realized losses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1Impairment losses
    
    
    
    
    
    
    35
    
    
    
    
    
    
    
    70Net securities
(losses) gains
    
    $
    
    
    
    $
    (34
    )
    
    $
    148
    
    
    $
    82
  9.




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Securities in a Continuous Unrealized Loss PositionLess than 12 Months
    
    
    12 Months or More
    
    
    Total(Dollars in thousands)
    
    Gross
    
    
    Fair
    
    
    Gross
    
    
    Fair
    
    
    Gross
    
    
    FairSeptember 30, 2010
    

Unrealized Losses
    
    
    Value
    
    

Unrealized Losses
    
    
    Value
    
    

Unrealized Losses
    
    
    ValueMortgage-backed
securities
    
    $
    
    
    
    $
    
    
    
    $
    25
    
    
    $
    613
    
    
    $
    25
    
    
    $
    613Corporate
    
    
    8
    
    
    
    492
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    492Total debt securities
    
    
    8
    
    
    
    492
    
    
    
    25
    
    
    
    613
    
    
    
    33
    
    
    
    1,105Equity securities
    
    
    
    
    
    
    
    
    
    
    15
    
    
    
    39
    
    
    
    15
    
    
    
    39Total temporarily
impaired
securities
    
    $
    8
    
    
    $
    492
    
    
    $
    40
    
    
    $
    652
    
    
    $
    48
    
    
    $
    1,144
 Securities in a Continuous Unrealized Loss PositionLess than 12 Months
    
    
    12 Months or More
    
    
    Total(Dollars in thousands)
    
    Gross
    
    
    Fair
    
    
    Gross
    
    
    Fair
    
    
    Gross
    
    
    FairDecember 31, 2009
    

Unrealized Losses
    
    
    Value
    
    

Unrealized Losses
    
    
    Value
    
    

Unrealized Losses
    
    
    ValueObligations of U.S.
Corporations
and Agencies
    
    $
    142
    
    
    $
    10,008
    
    
    $
    
    
    
    $
    
    
    
    $
    142
    
    
    $
    10,008Mortgage-backed
securities
    
    
    6
    
    
    
    49
    
    
    
    170
    
    
    
    2,107
    
    
    
    176
    
    
    
    2,156Obligations of state
&
political
subdivisions
    
    
    22
    
    
    
    3,033
    
    
    
    
    
    
    
    
    
    
    
    22
    
    
    
    3,033Total debt securities
    
    
    170
    
    
    
    13,090
    
    
    
    170
    
    
    
    2,107
    
    
    
    340
    
    
    
    15,197Equity securities
    
    
    
    
    
    
    
    
    
    
    12
    
    
    
    41
    
    
    
    12
    
    
    
    41Total temporarily
impaired
securities
    
    $
    170
    
    
    $
    13,090
    
    
    $
    182
    
    
    $
    2,148
    
    
    $
    352
    
    
    $
    15,238
  10.




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##### Table of Contents



NOTE 3  LOANS
   (in thousands)
    
    September 30, 2010
    
    
    December 31, 2009Commercial
    
    $
    79,957
    
    
    $
    69,350Commercial real estate
    
    
    102,533
    
    
    
    107,794Residential real estate
    
    
    111,015
    
    
    
    114,882Installment
    
    
    6,680
    
    
    
    7,464Construction
    
    
    16,504
    
    
    
    13,761Deferred loan costs
    
    
    220
    
    
    
    231Total Loans
    
    $
    316,909
    
    
    $
    313,482
  (in thousands)
    

September 30, 2010
    
    
    December 31, 2009Balance, at beginning of period
    
    $
    4,059
    
    
    $
    3,394Provision for loan losses
    
    
    996
    
    
    
    1,337Loans charged-off
    
    
    (767
    )
    
    
    (885
    )Recoveries
    
    
    119
    
    
    
    213Ending balance
    
    $
    4,407
    
    
    $
    4,059
  September 30, 2010
    
    30-89 Days
    
    
    90 Days Past Due(in thousands)
    
    Past Due
    
    
    Accruing
    
    
    Non-AccrualCommercial
    
    $
    25
    
    
    $
    
    
    
    $
    4Commercial real estate
    
    
    940
    
    
    
    26
    
    
    
    3,209Residential real estate
    
    
    1,607
    
    
    
    257
    
    
    
    1,750Installment
    
    
    150
    
    
    
    
    
    
    
    Total past-due loans
    
    $
    2,722
    
    
    $
    283
    
    
    $
    4,963
 December 31, 2009
    
    30-89 Days
    
    
    90 Days Past Due(in thousands)
    
    Past Due
    
    
    Accruing
    
    
    Non-AccrualCommercial
    
    $
    
    
    
    $
    24
    
    
    $
    102Commercial real estate
    
    
    229
    
    
    
    
    
    
    
    1,499Residential real estate
    
    
    1,464
    
    
    
    330
    
    
    
    2,185Installment
    
    
    204
    
    
    
    1
    
    
    
    Total past-due loans
    
    $
    1,897
    
    
    $
    355
    
    
    $
    3,786
 11.




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##### Table of Contents



NOTE 3  LOANS ( )
   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.
  12.




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NOTE 4- FAIR VALUE MEASUREMENTS
 (Dollars in thousands)
    
    Level I
    
    
    Level II
    
    
    Level III
    
    
    TotalSeptember 30, 2010Assets:Securities available-for-saleU.S. Treasury security
    
    $
    100
    
    
    $
    
    
    
    $
    
    
    
    $
    100Obligations of U.S. government
corporations and agencies
    
    
    
    
    
    
    19,121
    
    
    
    
    
    
    
    19,121Mortgage-backed securities
    
    
    
    
    
    
    40,072
    
    
    
    
    
    
    
    40,072Corporate bonds
    
    
    
    
    
    
    492
    
    
    
    
    
    
    
    492Obligations of states and
political subdivisions
    
    
    
    
    
    
    12,661
    
    
    
    
    
    
    
    12,661Total debt securities
    
    
    100
    
    
    
    72,346
    
    
    
    
    
    
    
    72,446Equity Securities
    
    
    55
    
    
    
    
    
    
    
    
    
    
    
    55Total available-for-sale securities
    
    $
    155
    
    
    $
    72,346
    
    
    $
    
    
    
    $
    72,501December 31, 2009Securities available-for-saleU.S. Treasury security
    
    $
    100
    
    
    $
    
    
    
    $
    
    
    
    $
    100Obligations of U.S. government
corporations and agencies
    
    
    
    
    
    
    14,033
    
    
    
    
    
    
    
    14,033Mortgage-backed securities
    
    
    
    
    
    
    51,358
    
    
    
    
    
    
    
    51,358Obligations of states and
political subdivisions
    
    
    
    
    
    
    9,614
    
    
    
    
    
    
    
    9,614Total debt securities
    
    
    100
    
    
    
    75,005
    
    
    
    
    
    
    
    75,105Equity Securities
    
    
    53
    
    
    
    
    
    
    
    
    
    
    
    53Total available-for-sale securities
    
    $
    153
    
    
    $
    75,005
    
    
    $
    
    
    
    $
    75,158
  13




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NOTE 4  FAIR VALUE MEASUREMENTS
 (Dollars in thousands)
    
    Level I
    
    
    Level II
    
    
    Level III
    
    
    TotalSeptember 30, 2010Assets Measured on a
Nonrecurring Basis:Impaired loans
    
    $
    
    
    
    $
    3,082
    
    
    $
    
    
    
    $
    3,082Other real estate owned
    
    
    
    
    
    
    163
    
    
    
    
    
    
    
    163Premises
    
    
    
    
    
    
    158
    
    
    
    
    
    
    
    158Mortgage servicing rights
    
    
    
    
    
    
    
    
    
    
    152
    
    
    
    152December 31, 2009Impaired loans
    
    $
    
    
    
    $
    1,736
    
    
    $
    
    
    
    $
    1,736Other real estate owned
    
    
    
    
    
    
    162
    
    
    
    
    
    
    
    162Premises
    
    
    
    
    
    
    181
    
    
    
    
    
    
    
    181Mortgage servicing rights
    
    
    
    
    
    
    
    
    
    
    138
    
    
    
    138
 NOTE 5  FAIR VALUES OF FINANCIAL INSTRUMENTS
  2010
    
    
    2009Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fair(Dollars in thousands)
    
    value
    
    
    value
    
    
    value
    
    
    valueFinancial assets:Cash and cash equivalents
    
    $
    43,612
    
    
    $
    43,612
    
    
    $
    42,661
    
    
    $
    42,661Securities
    
    
    77,964
    
    
    
    77,964
    
    
    
    80,621
    
    
    
    80,621Loans, net
    
    
    312,502
    
    
    
    316,652
    
    
    
    309,423
    
    
    
    313,993Accrued interest receivable
    
    
    1,413
    
    
    
    1,413
    
    
    
    1,315
    
    
    
    1,315Financial liabilities:Deposits
    
    $
    341,296
    
    
    $
    343,763
    
    
    $
    329,486
    
    
    $
    331,511Short-term borrowings
    
    
    29,594
    
    
    
    29,594
    
    
    
    28,764
    
    
    
    28,764Other borrowings
    
    
    31,657
    
    
    
    32,281
    
    
    
    45,010
    
    
    
    46,535Accrued interest payable
    
    
    252
    
    
    
    252
    
    
    
    322
    
    
    
    322
  Cash and cash equivalents; Accrued interest receivable; Short term borrowings, Accrued interest
payable
  Securities
  14.




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NOTE 5  FAIR VALUES OF FINANCIAL INSTRUMENTS
  Loans, net
  Deposits and Other Borrowed Funds
    15.




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##### Table of Contents



ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  FORWARD-LOOKING STATEMENTS
   FINANCIAL CONDITION
   16.




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(Dollars in thousands)
    
    September 30, 2010
    
    
    December 31, 2009
    
    
    September 30, 2009Non-performing loans
    
    $
    5,246
    
    
    $
    4,141
    
    
    $
    4,504Other real estate
    
    
    163
    
    
    
    162
    
    
    
    40Allowance for loan losses
    
    
    4,407
    
    
    
    4,059
    
    
    
    3,697Total loans
    
    
    316,909
    
    
    
    313,482
    
    
    
    314,717Allowance: loans
    
    
    1.39
    %
    
    
    1.29
    %
    
    
    1.17
    %Allowance: non-performing loans
    
    
    0.8
    x
    
    
    1.0
    x
    
    
    0.8
    x
     17.




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##### Table of Contents



RESULTS OF OPERATIONS
 Three months ended September 30, 2010 and 2009
  Average Balance Sheets and Net Interest Margin Analysis
 For the Three Months Ended September 30,2010
    
    
    2009Average
    
    
    Average
    
    
    Average
    
    
    Average(Dollars in thousands)
    
    Balance
    
    
    Rate
    
    
    Balance
    
    
    RateAssetsDue from banks-interest bearing
    
    $
    28,266
    
    
    
    0.26
    %
    
    $
    13,463
    
    
    
    0.24
    %Taxable securities
    
    
    68,216
    
    
    
    3.87
    %
    
    
    65,761
    
    
    
    4.68
    %Tax-exempt securities
    
    
    11,503
    
    
    
    4.77
    %
    
    
    8,941
    
    
    
    5.67
    %Federal funds sold
    
    
    251
    
    
    
    0.13
    %
    
    
    315
    
    
    
    0.05
    %Loans
    
    
    315,355
    
    
    
    5.53
    %
    
    
    316,149
    
    
    
    5.74
    %Total earning assets
    
    
    423,591
    
    
    
    4.89
    %
    
    
    404,629
    
    
    
    5.38
    %Other assets
    
    
    22,508
    
    
    
    
    
    
    
    20,810Total Assets
    
    $
    446,099
    
    
    
    
    
    
    $
    425,439Liabilities and Shareholders EquityInterest bearing demand deposits
    
    $
    50,252
    
    
    
    0.08
    %
    
    $
    44,591
    
    
    
    0.09
    %Savings deposits
    
    
    74,377
    
    
    
    0.32
    %
    
    
    57,240
    
    
    
    0.38
    %Time deposits
    
    
    151,199
    
    
    
    2.15
    %
    
    
    153,595
    
    
    
    2.56
    %Other borrowed funds
    
    
    61,266
    
    
    
    2.02
    %
    
    
    77,968
    
    
    
    2.62
    %Total interest bearing liabilities
    
    
    337,094
    
    
    
    1.41
    %
    
    
    333,394
    
    
    
    1.87
    %Non-interest bearing demand deposits
    
    
    60,261
    
    
    
    
    
    
    
    45,226Other liabilities
    
    
    1,531
    
    
    
    
    
    
    
    1,370Shareholders Equity
    
    
    47,213
    
    
    
    
    
    
    
    45,449Total Liabilities and Shareholders Equity
    
    $
    446,099
    
    
    
    
    
    
    $
    425,439Taxable equivalent net interest spread
    
    
    
    
    
    
    3.76
    %
    
    
    
    
    
    
    3.84
    %Taxable equivalent net interest margin
    
    
    
    
    
    
    3.48
    %
    
    
    
    
    
    
    3.51
    %
 18.




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19.




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Nine months ended September 30, 2010 and 2009
    2010
    
    
    2009Average
    
    
    Average
    
    
    Average
    
    
    Average(unaudited, dollars in thousands)
    
    Balance
    
    
    Rate
    
    
    Balance
    
    
    RateAssetsDue from banks-interest bearing
    
    $
    28,290
    
    
    
    0.24
    %
    
    $
    9,630
    
    
    
    0.23
    %Taxable securities
    
    
    68,577
    
    
    
    4.02
    %
    
    
    66,513
    
    
    
    4.95
    %Tax-exempt securities
    
    
    10,026
    
    
    
    5.19
    %
    
    
    8,164
    
    
    
    5.76
    %Federal funds sold
    
    
    240
    
    
    
    0.13
    %
    
    
    200
    
    
    
    0.13
    %Loans
    
    
    312,943
    
    
    
    5.56
    %
    
    
    317,957
    
    
    
    5.80
    %Total earning assets
    
    
    420,076
    
    
    
    4.94
    %
    
    
    402,464
    
    
    
    5.53
    %Other assets
    
    
    22,514
    
    
    
    
    
    
    
    21,137Total Assets
    
    $
    442,590
    
    
    
    
    
    
    $
    423,601Liabilities and Shareholders EquityInterest bearing demand deposits
    
    $
    51,819
    
    
    
    0.08
    %
    
    $
    44,848
    
    
    
    0.11
    %Savings deposits
    
    
    73,061
    
    
    
    0.36
    %
    
    
    57,582
    
    
    
    0.43
    %Time deposits
    
    
    149,504
    
    
    
    2.16
    %
    
    
    155,031
    
    
    
    2.70
    %Other borrowed funds
    
    
    64,206
    
    
    
    2.15
    %
    
    
    74,688
    
    
    
    2.75
    %Total interest bearing liabilities
    
    
    338,590
    
    
    
    1.45
    %
    
    
    332,149
    
    
    
    1.97
    %Non-interest bearing demand deposits
    
    
    55,677
    
    
    
    
    
    
    
    44,722Other liabilities
    
    
    1,486
    
    
    
    
    
    
    
    1,868Shareholders Equity
    
    
    46,837
    
    
    
    
    
    
    
    44,862Total Liabilities and Shareholders Equity
    
    $
    442,590
    
    
    
    
    
    
    $
    423,601Taxable equivalent net interest spread
    
    
    
    
    
    
    3.77
    %
    
    
    
    
    
    
    3.90
    %Taxable equivalent net interest margin
    
    
    
    
    
    
    3.49
    %
    
    
    
    
    
    
    3.56
    %
 20.




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##### Table of Contents



21.




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##### Table of Contents



CAPITAL RESOURCES
  LIQUIDITY
  OFF-BALANCE SHEET ARRANGEMENTS
  22.




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##### Table of Contents



ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   September 30, 2010
 Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    $
    16,391
    
    
    $
    1,248
    
    
    
    8.2
    %+100
    
    
    15,558
    
    
    
    415
    
    
    
    2.70
    
    
    15,143
    
    
    
    0
    
    
    
    0.0-100
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A-200
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A
 December 31, 2009
 Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    $
    17,287
    
    
    $
    849
    
    
    
    5.2
    %+100
    
    
    16,739
    
    
    
    301
    
    
    
    1.80
    
    
    16,438
    
    
    
    0
    
    
    
    0.0-100
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A-200
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A
 23.




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##### Table of Contents



ITEM 4T  CONTROLS AND PROCEDURES
     CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
  24.




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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 were no material changes to the Risk Factors described in
Item 1A in the Companys Annual Report on Form 10-K for the
period ended December 31, 2009.
 
 ITEM 2 
    
    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There are no matters required to be reported under this item.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
 25.




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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
 26.




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##### Table of Contents



CSB BANCORP, INC.
(Registrant) Date: November 12, 2010
    /s/ Eddie L. SteinerEddie L. SteinerPresident
Chief Executive OfficerDate: November 12, 2010
    /s/ Paula J. MeilerPaula J. MeilerSenior Vice President
Chief Financial Officer 27.




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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
    
    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