##### 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: June 30, 2009
 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.
 (Exact name of registrant as specified in its charter)
 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
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o þ
  Common stock, $6.25 par value
    
    Outstanding at August 13, 2009:2,734,799 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 Consolidated Financial Statements
    
    
    7ITEM 2   MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    15ITEM 3   QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
    
    
    20ITEM 4T   CONTROLS AND PROCEDURES
    
    
    21Part II  Other InformationITEM 1  Legal Proceedings
    
    
    221A  Risk Factors
    
    
    222  Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    223  Defaults upon Senior Securities
    
    
    224  Submission of Matters to a Vote of Security Holders
    
    
    235  Other Information
    
    
    236  Exhibits
    
    
    24Signatures
    
    
    25EX-11EX-31.1EX-31.2EX-32.1EX-32.2




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##### Table of Contents



June 30,
    
    
    December 31,2009
    
    
    2008ASSETSCash and due from bank
    
    $
    7,643,710
    
    
    $
    8,698,917Interest-earning deposits in other banks
    
    
    8,056,334
    
    
    
    2,961,153Federal funds sold
    
    
    1,691,000
    
    
    
    1,086,000Total cash and cash equivalents
    
    
    17,391,044
    
    
    
    12,746,070Securities available-for-sale, at fair value
    
    
    67,302,810
    
    
    
    76,655,816Restricted stock, at cost
    
    
    5,463,100
    
    
    
    5,231,800Total securities
    
    
    72,765,910
    
    
    
    81,887,616Loans
    
    
    317,879,674
    
    
    
    316,290,412Less allowance for loan losses
    
    
    3,397,920
    
    
    
    3,393,685Net loans
    
    
    314,481,754
    
    
    
    312,896,727Premises and equipment, net
    
    
    8,243,694
    
    
    
    8,470,855Bank owned life insurance
    
    
    2,800,812
    
    
    
    2,748,909Other intangible assets
    
    
    557,650
    
    
    
    597,014Goodwill
    
    
    1,448,029
    
    
    
    1,448,029Accrued interest receivable and other assets
    
    
    4,895,858
    
    
    
    3,861,962Total Assets
    
    $
    422,584,751
    
    
    $
    424,657,182LIABILITIESDepositsNoninterest-bearing
    
    $
    44,083,567
    
    
    $
    49,058,592Interest-bearing
    
    
    256,429,380
    
    
    
    256,394,147Total deposits
    
    
    300,512,947
    
    
    
    305,452,739Short-term borrowings
    
    
    24,917,661
    
    
    
    22,891,593Other borrowings
    
    
    50,261,780
    
    
    
    50,997,537Accrued interest payable and other liabilities
    
    
    2,214,038
    
    
    
    1,846,841Total liabilities
    
    
    377,906,426
    
    
    
    381,188,710SHAREHOLDERS EQUITYCommon stock, $6.25 par value: 9,000,000 shares authorized:2,980,602 shares issued; 2,734,799 shares outstanding
    
    
    18,628,767
    
    
    
    18,628,767Additional paid-in capital
    
    
    9,989,447
    
    
    
    9,986,499Retained earnings
    
    
    20,341,438
    
    
    
    19,723,972Treasury stock at cost: 245,803 shares
    
    
    (5,014,541
    )
    
    
    (5,014,541
    )Accumulated other comprehensive income
    
    
    733,214
    
    
    
    143,775Total shareholders equity
    
    
    44,678,325
    
    
    
    43,468,472Total Liabilities and Shareholders Equity
    
    $
    422,584,751
    
    
    $
    424,657,182
  3.




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##### Table of Contents



Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Interest incomeLoans, including fees
    
    $
    4,582,288
    
    
    $
    4,017,256
    
    
    $
    9,203,044
    
    
    $
    8,429,960Taxable securities
    
    
    797,541
    
    
    
    772,867
    
    
    
    1,685,408
    
    
    
    1,577,489Nontaxable securities
    
    
    79,925
    
    
    
    55,544
    
    
    
    147,922
    
    
    
    99,422Other
    
    
    6,132
    
    
    
    47,664
    
    
    
    8,856
    
    
    
    69,871Total interest income
    
    
    5,465,886
    
    
    
    4,893,331
    
    
    
    11,045,230
    
    
    
    10,176,742Interest expenseDeposits
    
    
    1,135,407
    
    
    
    1,166,153
    
    
    
    2,297,802
    
    
    
    2,593,911Other
    
    
    498,412
    
    
    
    441,414
    
    
    
    1,021,801
    
    
    
    917,302Total interest expense
    
    
    1,633,819
    
    
    
    1,607,567
    
    
    
    3,319,603
    
    
    
    3,511,213Net interest income
    
    
    3,832,067
    
    
    
    3,285,764
    
    
    
    7,725,627
    
    
    
    6,665,529Provision for loan losses
    
    
    394,068
    
    
    
    47,677
    
    
    
    635,140
    
    
    
    154,709Net interest income after provision
for loan losses
    
    
    3,437,999
    
    
    
    3,238,087
    
    
    
    7,090,487
    
    
    
    6,510,820Non-interest incomeService charges on deposit accounts
    
    
    324,210
    
    
    
    339,256
    
    
    
    617,510
    
    
    
    626,408Trust and financial services
    
    
    119,616
    
    
    
    162,568
    
    
    
    234,375
    
    
    
    351,232Debit card interchange fees
    
    
    96,658
    
    
    
    80,369
    
    
    
    181,723
    
    
    
    151,190Gain on sale of loans
    
    
    116,890
    
    
    
    7,176
    
    
    
    184,460
    
    
    
    271,835Securities (losses) gains
    
    
    (577
    )
    
    
    
    
    
    
    115,503
    
    
    
    Other income
    
    
    123,302
    
    
    
    90,577
    
    
    
    242,483
    
    
    
    234,767Total non-interest income
    
    
    780,099
    
    
    
    679,946
    
    
    
    1,576,254
    
    
    
    1,635,432Non-interest expensesSalaries and employee benefits
    
    
    1,696,213
    
    
    
    1,527,162
    
    
    
    3,404,577
    
    
    
    3,064,065Occupancy expense
    
    
    230,817
    
    
    
    184,915
    
    
    
    474,162
    
    
    
    382,796Equipment expense
    
    
    137,951
    
    
    
    119,320
    
    
    
    271,696
    
    
    
    244,770State franchise tax
    
    
    126,580
    
    
    
    107,380
    
    
    
    236,370
    
    
    
    214,810Professional and director fees
    
    
    184,553
    
    
    
    140,343
    
    
    
    328,316
    
    
    
    279,899FDIC deposit insurance
    
    
    218,300
    
    
    
    7,320
    
    
    
    391,200
    
    
    
    14,585Amortization of intangible assets
    
    
    16,227
    
    
    
    
    
    
    
    32,545
    
    
    
    Other expenses
    
    
    599,606
    
    
    
    530,831
    
    
    
    1,200,281
    
    
    
    1,144,805Total non-interest expenses
    
    
    3,210,247
    
    
    
    2,617,271
    
    
    
    6,339,147
    
    
    
    5,345,730Income before income taxes
    
    
    1,007,851
    
    
    
    1,300,762
    
    
    
    2,327,594
    
    
    
    2,800,522Federal income tax provision
    
    
    301,800
    
    
    
    423,000
    
    
    
    725,600
    
    
    
    921,000Net income
    
    $
    706,051
    
    
    $
    877,762
    
    
    $
    1,601,994
    
    
    $
    1,879,522Basic and diluted earnings per share
    
    $
    0.26
    
    
    $
    0.36
    
    
    $
    0.59
    
    
    $
    0.77
  4.




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##### Table of Contents



Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Balance at beginning of period
    
    $
    44,391,674
    
    
    $
    37,147,621
    
    
    $
    43,468,472
    
    
    $
    36,278,048Comprehensive income :Net income
    
    
    706,051
    
    
    
    877,762
    
    
    
    1,601,994
    
    
    
    1,879,522Change in net unrealized
gain (loss), net of reclassification adjustments and
related income taxes $36,790,
$(368,492), $303,650, and
$(153,612), respectively
    
    
    71,416
    
    
    
    (715,308
    )
    
    
    589,439
    
    
    
    (298,189
    )Total comprehensive income
    
    
    777,467
    
    
    
    162,454
    
    
    
    2,191,433
    
    
    
    1,581,333Stock-based compensation expense
    
    
    1,448
    
    
    
    4,000
    
    
    
    2,948
    
    
    
    7,500Purchase of treasury shares
    
    
    
    
    
    
    (300,800
    )
    
    
    
    
    
    
    (414,253
    )Cash dividends declared
($0.18 and $0.36 per share in
2009 and 2008)
    
    
    (492,264
    )
    
    
    (435,969
    )
    
    
    (984,528
    )
    
    
    (875,322
    )Balance at end of period
    
    $
    44,678,325
    
    
    $
    36,577,306
    
    
    $
    44,678,325
    
    
    $
    36,577,306
  5.




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##### Table of Contents



Six Months EndedJune 30,2009
    
    
    2008Net cash from operating activities
    
    $
    682,771
    
    
    $
    2,229,326Cash flows from investing activitiesSecurities available-for-sale:Proceeds from maturities, calls and repayments
    
    
    21,370,628
    
    
    
    27,083,212Proceeds from sales
    
    
    1,296,941
    
    
    
    Purchases
    
    
    (12,318,530
    )
    
    
    (21,730,677
    )Purchase of Federal Reserve Bank stock
    
    
    (231,300
    )
    
    
    (75,700
    )Proceeds from sale of other real estate
    
    
    28,500
    
    
    
    105,000Loan originations, net of repayments
    
    
    (2,272,749
    )
    
    
    4,858,189Proceeds from sale of credit cards
    
    
    
    
    
    
    2,513,671Premises and equipment expenditures, net
    
    
    (110,781
    )
    
    
    (131,428
    )Net cash provided by investing activities
    
    
    7,762,709
    
    
    
    12,622,267Cash flows from financing activitiesNet change in deposits
    
    
    (4,806,202
    )
    
    
    (11,209,656
    )Net change in short-term borrowings
    
    
    2,026,068
    
    
    
    (194,023
    )Proceeds from other borrowings
    
    
    
    
    
    
    8,000,000Repayment of other borrowings
    
    
    (528,108
    )
    
    
    (256,091
    )Purchase of treasury shares
    
    
    
    
    
    
    (414,253
    )Cash dividends paid
    
    
    (492,264
    )
    
    
    (439,353
    )Net cash used for financing activities
    
    
    (3,800,506
    )
    
    
    (4,513,376
    )Net change in cash and cash equivalents
    
    
    4,644,974
    
    
    
    10,338,217Cash and cash equivalents at beginning of period
    
    
    12,746,070
    
    
    
    12,193,362Cash and cash equivalents at end of period
    
    $
    17,391,044
    
    
    $
    22,531,579Supplemental disclosuresInterest paid
    
    $
    3,668,442
    
    
    $
    3,543,249Income taxes paid
    
    
    920,000
    
    
    
    926,000
  6.




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##### Table of Contents



NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
 The FASB Accounting Standards Codification and the
Hierarchy of Generally Accepted Accounting Principles
 Accounting for Transfers of Financial Assets Accounting for
Transfers and Servicing of Financial Assets and Extinguishment of Liabilities
 Subsequent Events
 7.




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##### Table of Contents



RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS-(continued)
  Determining Fair Value When the Volume and Level
of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions
That Are Not Orderly
 Interim Disclosures about Fair Value
of Financial Instruments
 Recognition and Presentation of
Other-Than-Temporary Impairments
 8.




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##### Table of Contents



NOTE 2  SECURITIES
  June 30, 2009
 Gross
    
    
    GrossAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    FairCost
    
    
    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    100,931
    
    
    $
    100
    
    
    $
    
    
    
    $
    101,031Obligations of U.S.
government
corporations and agencies
    
    
    4,058,981
    
    
    
    
    
    
    
    45,521
    
    
    
    4,013,460Mortgage-backed securities
    
    
    53,519,123
    
    
    
    1,427,649
    
    
    
    254,618
    
    
    
    54,692,154Obligations of states and
political subdivisions
    
    
    8,405,937
    
    
    
    85,766
    
    
    
    78,899
    
    
    
    8,412,804Total debt securities
    
    
    66,084,972
    
    
    
    1,513,515
    
    
    
    379,038
    
    
    
    67,219,449Equity Securities
    
    
    106,907
    
    
    
    285
    
    
    
    23,831
    
    
    
    83,361Total available-for-sale
    
    
    66,191,879
    
    
    
    1,513,800
    
    
    
    402,869
    
    
    
    67,302,810Restricted stock
    
    
    5,463,100
    
    
    
    
    
    
    
    
    
    
    
    5,463,100Total securities
    
    $
    71,654,979
    
    
    $
    1,513,800
    
    
    $
    402,869
    
    
    $
    72,765,910
 December 31, 2008
 Gross
    
    
    GrossAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    FairCost
    
    
    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    99,988
    
    
    $
    473
    
    
    $
    
    
    
    $
    100,461Obligations of U.S.
government
corporations and agencies
    
    
    12,447,301
    
    
    
    93,055
    
    
    
    
    
    
    
    12,540,356Mortgage-backed securities
    
    
    56,697,763
    
    
    
    618,677
    
    
    
    417,495
    
    
    
    56,898,945Obligations of states and
political subdivisions
    
    
    7,045,468
    
    
    
    77,901
    
    
    
    83,073
    
    
    
    7,040,296Total debt securities
    
    
    76,290,520
    
    
    
    790,106
    
    
    
    500,568
    
    
    
    76,580,058Equity Securities
    
    
    147,458
    
    
    
    645
    
    
    
    72,345
    
    
    
    75,758Total available-for-sale
    
    
    76,437,978
    
    
    
    790,751
    
    
    
    572,913
    
    
    
    76,655,816Restricted stock
    
    
    5,231,800
    
    
    
    
    
    
    
    
    
    
    
    5,231,800Total securities
    
    $
    81,669,778
    
    
    $
    790,751
    
    
    $
    572,913
    
    
    $
    81,887,616
  Amortized Cost
    
    
    Fair ValueAvailable-for-saleDue in one year or less
    
    $
    2,633,200
    
    
    $
    2,655,966Due after one through five years
    
    
    4,556,715
    
    
    
    4,544,748Due after five years through ten years
    
    
    7,155,781
    
    
    
    7,227,666Due after ten years
    
    
    51,739,276
    
    
    
    52,791,069Total debt securities available-for sale
    
    $
    66,084,972
    
    
    $
    67,219,449
 9.




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##### Table of Contents



NOTE 2  SECURITIES
 Realized Gains and Losses
  Quarter ended
    
    
    Six months endedJune 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Proceeds
    
    $
    4,973
    
    
    $
    
    
    
    $
    1,296,941
    
    
    $
    Realized gains
    
    $
    
    
    
    $
    
    
    
    $
    151,080
    
    
    $
    Realized losses
    
    
    577
    
    
    
    
    
    
    
    577
    
    
    
    Impairment losses
    
    
    
    
    
    
    
    
    
    
    35,000
    
    
    
    Net securities
(losses) gains
    
    $
    (577
    )
    
    $
    
    
    
    $
    115,503
    
    
    $
    
  10.




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##### Table of Contents



NOTE 2  SECURITIES
  Securities in a Continuous Unrealized Loss PositionLess than 12 Months
    
    
    12 Months or More
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossUnrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    FairJune 30, 2009
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    ValueUS Agency
    
    $
    45,521
    
    
    $
    4,013,460
    
    
    $
    
    
    
    $
    
    
    
    $
    45,521
    
    
    $
    4,013,460Mortgage-backed
securities
    
    
    8,094
    
    
    
    297,978
    
    
    
    246,524
    
    
    
    3,012,819
    
    
    
    254,618
    
    
    
    3,310,797Obligations of
state & political
subdivisions
    
    
    78,899
    
    
    
    4,024,353
    
    
    
    
    
    
    
    
    
    
    
    78,899
    
    
    
    4,024,353Total debt
securities
    
    
    132,514
    
    
    
    8,335,791
    
    
    
    246,524
    
    
    
    3,012,819
    
    
    
    379,038
    
    
    
    11,348,610Equity securities
    
    
    
    
    
    
    
    
    
    
    23,831
    
    
    
    72,001
    
    
    
    23,831
    
    
    
    72,001Total temporarily
impaired securities
    
    $
    132,514
    
    
    $
    8,335,791
    
    
    $
    270,355
    
    
    $
    3,084,820
    
    
    $
    402,869
    
    
    $
    11,420,611
 Securities in a Continuous Unrealized Loss PositionLess than 12 Months
    
    
    12 Months or More
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossUnrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    FairDecember 31, 2008
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    ValueMortgage-backed
securities
    
    $
    312,520
    
    
    $
    9,327,561
    
    
    $
    104,975
    
    
    $
    1,101,425
    
    
    $
    417,495
    
    
    $
    10,428,986Obligations of
state & political
subdivisions
    
    
    83,073
    
    
    
    4,291,747
    
    
    
    
    
    
    
    
    
    
    
    83,073
    
    
    
    4,291,747Total debt
securities
    
    
    395,593
    
    
    
    13,619,308
    
    
    
    104,975
    
    
    
    1,101,425
    
    
    
    500,568
    
    
    
    14,720,733Equity securities
    
    
    
    
    
    
    
    
    
    
    72,345
    
    
    
    64,038
    
    
    
    72,345
    
    
    
    64,038Total temporarily
impaired securities
    
    $
    395,593
    
    
    $
    13,619,308
    
    
    $
    177,320
    
    
    $
    1,165,463
    
    
    $
    572,913
    
    
    $
    14,784,771
 11.




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##### Table of Contents



NOTE 3  FAIR VALUE MEASUREMENTS (FAS NO. 157)
 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.
  Level I
    
    Level II
    
    Level III
    
    TotalJune 30, 2009Assets:Securities available for sale
    
    $
    184,392
    
    
    $
    67,118,418
    
    
    $
    
    
    
    $
    67,302,810December 31, 2008Securities available for sale
    
    $
    176,219
    
    
    $
    76,479,597
    
    
    $
    
    
    
    $
    76,655,816
  Level I
    
    
    Level II
    
    
    Level III
    
    
    TotalJune 30, 2009Assets Measured on a Nonrecurring Basis:Impaired loans
    
    $
    
    
    
    $
    1,798,608
    
    
    $
    
    
    
    $
    1,798,608December 31, 2008Impaired loans
    
    $
    
    
    
    $
    2,049,171
    
    
    $
    
    
    
    $
    2,049,171
 12.




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##### Table of Contents



NOTE 4  FAIR VALUES OF FINANCIAL INSTRUMENTS (FAS NO. 107)
  2009
    
    2008Carrying
    
    Fair
    
    Carrying
    
    Fair(Dollars in thousands)
    
    value
    
    value
    
    value
    
    valueFinancial assets:Cash and cash equivalents
    
    $
    17,391
    
    
    $
    17,391
    
    
    $
    12,746
    
    
    $
    12,746Securities
    
    
    72,766
    
    
    
    72,766
    
    
    
    81,888
    
    
    
    81,888Loans, net
    
    
    315,646
    
    
    
    321,546
    
    
    
    312,897
    
    
    
    321,924Accrued Interest Receivable
    
    
    1,281
    
    
    
    1,281
    
    
    
    1,386
    
    
    
    1,386Financial liabilities:Deposits
    
    $
    300,513
    
    
    $
    302,784
    
    
    $
    305,453
    
    
    $
    308,213Short-term borrowings
    
    
    24,918
    
    
    
    24,918
    
    
    
    22,892
    
    
    
    22,892Other borrowings
    
    
    50,262
    
    
    
    52,234
    
    
    
    50,998
    
    
    
    53,073Accrued Interest Payable
    
    
    405
    
    
    
    405
    
    
    
    417
    
    
    
    417
  Cash and cash equivalents; Accrued interest receivable; Short term borrowings, Accrued interest payable
  Securities
  Loans, net
  Deposits and Other Borrowed Funds
   13.




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NOTE 5  BUSINESS COMBINATION
   For the three months
    
    For the six monthsended June 30,
    
    ended June 30,(in thousands, except per share amounts)
    
    2009
    
    2008
    
    2009
    
    2008Net interest income
    
    $
    3,832
    
    
    $
    3,884
    
    
    $
    7,726
    
    
    $
    7,889Provision for loan losses
    
    
    394
    
    
    
    108
    
    
    
    635
    
    
    
    313Non-interest income
    
    
    780
    
    
    
    608
    
    
    
    1,576
    
    
    
    1,652Non-interest expense
    
    
    3,210
    
    
    
    3,241
    
    
    
    6,339
    
    
    
    6,573Net income
    
    $
    706
    
    
    $
    774
    
    
    $
    1,602
    
    
    $
    1,877Net income per common shareBasic
    
    $
    0.26
    
    
    $
    0.28
    
    
    $
    0.59
    
    
    $
    0.68Diluted
    
    $
    0.26
    
    
    $
    0.28
    
    
    $
    0.59
    
    
    $
    0.68
 NOTE 6  SUBSEQUENT EVENTS
  14.




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ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
  FORWARD-LOOKING STATEMENTS
   FINANCIAL CONDITION
   15.




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June 30, 2009
    
    March 31, 2009
    
    December 31, 2008Non-performing loans
    
    $
    4,071,028
    
    
    $
    4,123,091
    
    
    $
    2,642,728Other real estate
    
    
    52,000
    
    
    
    59,000
    
    
    
    79,000Allowance for loan losses
    
    
    3,397,920
    
    
    
    3,401,888
    
    
    
    3,393,685Total loans
    
    
    317,879,674
    
    
    
    319,424,751
    
    
    
    316,290,412Allowance: loans
    
    
    1.07
    %
    
    
    1.07
    %
    
    
    1.07
    %30-89 day loan delinquency
    
    
    1,581,869
    
    
    
    1,837,725
    
    
    
    3,111,000Allowance: non-performing loans
    
    
    0.8
    x
    
    
    0.8
    x
    
    
    1.3
    xNon-performing assets: total assets
    
    
    1.00
    %
    
    
    0.99
    %
    
    
    0.64
    %
     16.




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RESULTS OF OPERATIONS
 Three months ended June 30, 2009 and 2008
       17.




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##### Table of Contents



Six months ended June 30, 2009 and 2008
       18.




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##### Table of Contents



CAPITAL RESOURCES
  LIQUIDITY
  OFF-BALANCE SHEET ARRANGEMENTS
  19.




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##### Table of Contents



ITEM 3
 QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
   June 30 2009
 Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    
    $
    16,648
    
    
    $
    443
    
    
    
    2.7
    %+100
    
    
    
    16,453
    
    
    
    248
    
    
    
    1.5
    %0
    
    
    
    16,205
    
    
    
    0
    
    
    
    0-100
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A-200
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A
 December 31, 2008
 Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    
    $
    16,084
    
    
    $
    651
    
    
    
    4.2
    %+100
    
    
    
    15,786
    
    
    
    353
    
    
    
    2.30
    
    
    
    15,433
    
    
    
    0
    
    
    
    0.0-100
    
    
    
    15,532
    
    
    
    99
    
    
    
    0.6-200
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A
 20.




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##### Table of Contents



ITEM 4T  CONTROLS AND PROCEDURES
     CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
  21.




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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, 2008.
 
 ITEM 2  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 There are no matters required to be reported under this item.
 Issuer Purchase of Equity Securities
 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 PlanApril 1, 2009 to
April 30, 2009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,471May 1, 2009 to
May 31, 2009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,471June 1, 2009 to
June 30, 2009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,471
 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.
 22.




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##### Table of Contents



Item 4  Submission of Matters to a Vote of Security Holders
 The Corporation held its Annual Meeting of Shareholders on April 22, 2009, for which
the board of Directors solicited proxies.
 (a)
    
    Three Directors were elected at the Annual Meeting for terms expiring
at the 2012 Annual Meeting of Shareholders, with the following voting results:
 AuthorityFor
    
    Against
    
    WithheldRonald E. Holtman
    
    
    1,883,407
    
    
    
    *
    
    
    
    70,455Daniel J. Miller
    
    
    1,808,385
    
    
    
    *
    
    
    
    145,476Eddie L. Steiner
    
    
    1,904,785
    
    
    
    *
    
    
    
    49,076
 
 *
    
    Proxies provide that shareholders may either cast a vote for, or abstain from voting
for directors. (b)
    
    In addition to the election of Directors, the following matter was
voted on at the Annual Meeting of Shareholders:
 1)
    
    Adoption of the proposed amendment to Article VIII of the
Code of Regulations of CSB Bancorp Inc:
 Votes For
    
    Votes Against
    
    Abstentions1,549,607
    
    126,946
    
    26,991
 
 Item 5  Other Information:
 There are no matters required to be reported under this item
 23.




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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 Def14-a 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
 24.




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##### Table of Contents



CSB BANCORP, INC.
(Registrant)Date: August 13, 2009
    /s/ Eddie L. SteinerEddie L. SteinerPresident
Chief Executive OfficerDate: August 13, 2009
    /s/ Paula J. MeilerPaula J. MeilerSenior Vice President
Chief Financial Officer 25.




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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 14-a 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
 26.