##### 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, 2007
 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
    
    (I.R.S. Employer Identification Number)incorporation or organization)
 91 North Clay, P.O. Box 232, Millersburg, Ohio 44654
 (Registrants telephone number)
  þ o
  o o þ
  o þ
  Common stock, $6.25 par value
    
    Outstanding at August 10, 2007:2,462,888 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
    
    
    9ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    
    
    15ITEM 4  CONTROLS AND PROCEDURES
    
    
    16Part II - Other InformationITEM 1  Legal Proceedings
    
    
    171A  Risk Factors
    
    
    172  Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    173  Defaults upon Senior Securities
    
    
    174  Submission of Matters to a Vote of Security Holders
    
    
    185  Other Information
    
    
    186  Exhibits
    
    
    19Signatures
    
    
    20EX-11EX-31.1EX-31.2EX-32.1EX-32.2




---



##### Table of Contents



June 30,
    
    
    December 31,2007
    
    
    2006ASSETSCash and due from banks
    
    $
    10,253,372
    
    
    $
    12,643,440Interest-earning deposits in other banks
    
    
    136,457
    
    
    
    9,748Federal funds sold
    
    
    
    
    
    
    5,000,000Total cash and cash equivalents
    
    
    10,389,829
    
    
    
    17,653,188Securities available-for-sale, at fair value
    
    
    63,757,288
    
    
    
    67,135,126Restricted stock, at cost
    
    
    3,105,900
    
    
    
    3,105,900Total securities
    
    
    66,863,188
    
    
    
    70,241,026Loans
    
    
    242,484,648
    
    
    
    232,431,938Less allowance for loan losses
    
    
    2,426,111
    
    
    
    2,607,118Net loans
    
    
    240,058,537
    
    
    
    229,824,820Premises and equipment, net
    
    
    7,527,394
    
    
    
    7,390,182Accrued interest receivable and other assets
    
    
    2,626,159
    
    
    
    2,130,631Total Assets
    
    $
    327,465,107
    
    
    $
    327,239,847LIABILITIESDepositsNoninterest-bearing
    
    $
    40,648,183
    
    
    $
    44,455,131Interest-bearing
    
    
    209,716,320
    
    
    
    215,722,541Total deposits
    
    
    250,364,503
    
    
    
    260,177,672Short-term borrowings
    
    
    33,257,047
    
    
    
    28,022,077Other borrowings
    
    
    7,202,919
    
    
    
    2,499,399Accrued interest payable and other liabilities
    
    
    1,521,503
    
    
    
    1,470,379Total liabilities
    
    
    292,345,972
    
    
    
    292,169,527SHAREHOLDERS EQUITYCommon stock, $6.25 par value: Authorized 9,000,000
shares; issued 2,667,786 shares
    
    
    16,673,667
    
    
    
    16,673,667Additional paid-in capital
    
    
    6,439,015
    
    
    
    6,427,765Retained earnings
    
    
    17,132,359
    
    
    
    16,248,608Treasury stock at cost: 204,898 shares in 2007 and
168,605 shares in 2006
    
    
    (4,348,856
    )
    
    
    (3,696,102
    )Accumulated other comprehensive loss
    
    
    (777,050
    )
    
    
    (583,618
    )Total shareholders equity
    
    
    35,119,135
    
    
    
    35,070,320Total Liabilities and Shareholders Equity
    
    $
    327,465,107
    
    
    $
    327,239,847
  3




---



##### Table of Contents



Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Interest incomeLoans, including fees
    
    $
    4,485,314
    
    
    $
    4,146,971
    
    
    $
    8,799,834
    
    
    $
    7,969,475Taxable securities
    
    
    734,392
    
    
    
    759,166
    
    
    
    1,484,449
    
    
    
    1,536,966Nontaxable securities
    
    
    66,617
    
    
    
    99,693
    
    
    
    135,129
    
    
    
    201,516Other
    
    
    2,186
    
    
    
    247
    
    
    
    15,380
    
    
    
    6,839Total interest income
    
    
    5,288,509
    
    
    
    5,006,077
    
    
    
    10,434,792
    
    
    
    9,714,796Interest expenseDeposits
    
    
    1,600,736
    
    
    
    1,272,915
    
    
    
    3,154,099
    
    
    
    2,439,835Other
    
    
    412,420
    
    
    
    460,229
    
    
    
    750,048
    
    
    
    707,755Total interest expense
    
    
    2,013,156
    
    
    
    1,733,144
    
    
    
    3,904,147
    
    
    
    3,147,590Net interest income
    
    
    3,275,353
    
    
    
    3,272,933
    
    
    
    6,530,645
    
    
    
    6,567,206Provision for loan losses
    
    
    124,271
    
    
    
    114,667
    
    
    
    202,276
    
    
    
    146,667Net interest income after provision
for loan losses
    
    
    3,151,082
    
    
    
    3,158,266
    
    
    
    6,328,369
    
    
    
    6,420,539Non-interest incomeService charges on deposit accounts
    
    
    316,887
    
    
    
    337,640
    
    
    
    592,359
    
    
    
    652,726Trust and financial services
    
    
    186,638
    
    
    
    164,348
    
    
    
    356,275
    
    
    
    256,590Insurance recovery
    
    
    186,526
    
    
    
    
    
    
    
    186,526
    
    
    
    Credit card fee income
    
    
    65,358
    
    
    
    71,383
    
    
    
    128,805
    
    
    
    146,566Securities gains
    
    
    5,430
    
    
    
    
    
    
    
    5,430
    
    
    
    Other income
    
    
    141,053
    
    
    
    158,835
    
    
    
    278,598
    
    
    
    246,767Total non-interest income
    
    
    901,892
    
    
    
    732,206
    
    
    
    1,547,993
    
    
    
    1,302,649Non-interest expensesSalaries and employee benefits
    
    
    1,434,823
    
    
    
    1,435,548
    
    
    
    2,842,003
    
    
    
    2,926,553Occupancy expense
    
    
    181,720
    
    
    
    167,530
    
    
    
    366,273
    
    
    
    338,743Equipment expense
    
    
    125,214
    
    
    
    121,377
    
    
    
    241,132
    
    
    
    257,513State franchise tax
    
    
    104,741
    
    
    
    112,192
    
    
    
    206,079
    
    
    
    221,392Professional and director fees
    
    
    164,760
    
    
    
    174,431
    
    
    
    306,142
    
    
    
    348,452Telephone expense
    
    
    54,305
    
    
    
    49,091
    
    
    
    119,970
    
    
    
    105,260Cash loss
    
    
    
    
    
    
    236,526
    
    
    
    
    
    
    
    236,526Other expenses
    
    
    580,944
    
    
    
    611,424
    
    
    
    1,184,784
    
    
    
    1,173,490Total non-interest expenses
    
    
    2,646,507
    
    
    
    2,908,119
    
    
    
    5,266,383
    
    
    
    5,615,929Income before income taxes
    
    
    1,406,467
    
    
    
    982,353
    
    
    
    2,609,979
    
    
    
    2,107,259Federal income tax provision
    
    
    450,000
    
    
    
    305,700
    
    
    
    839,000
    
    
    
    656,700Net income
    
    $
    956,467
    
    
    $
    676,653
    
    
    $
    1,770,979
    
    
    $
    1,450,559Basic and diluted earnings per share
    
    $
    0.39
    
    
    $
    0.27
    
    
    $
    0.72
    
    
    $
    0.57
  4




---



##### Table of Contents



Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Balance at beginning of period
    
    $
    34,915,226
    
    
    $
    34,991,684
    
    
    $
    35,070,320
    
    
    $
    35,170,259Comprehensive income (loss):Net income
    
    
    956,467
    
    
    
    676,653
    
    
    
    1,770,979
    
    
    
    1,450,559Change in net unrealized
loss, net of reclassification
adjustments and related
income taxes $(158,912), $(265,441), $(99,647), and
$(424,363), respectively
    
    
    (308,477
    )
    
    
    (515,267
    )
    
    
    (193,432
    )
    
    
    (823,764
    )Total comprehensive income
    
    
    649,990
    
    
    
    161,386
    
    
    
    1,577,547
    
    
    
    626,795Issuance of 40 shares from treasury
    
    
 
    
    
    
    
    
    
    

       641Stock-based compensation expense
    
    
    
    
    
    
    2,525
    
    
    
    11,250
    
    
    
    5,050Purchase of treasury shares
    
    
    (2,761
    )
    
    
    (953,440
    )
    
    
    (653,983
    )
    
    
    (1,189,164
    )Cash dividends declared
($0.18 and $0.36 per share in
2007 and $0.16 and $0.32
per share in 2006)
    
    
    (443,320
    )
    
    
    (403,157
    )
    
    
    (886,640
    )
    
    
    (813,942
    )Balance at end of period
    
    $
    35,119,135
    
    
    $
    33,798,998
    
    
    $
    35,119,135
    
    
    $
    33,798,998
  5




---



##### Table of Contents



Six Months EndedJune 30,2007
    
    
    2006Net cash from operating activities
    
    $
    1,564,951
    
    
    $
    2,048,216Cash flows from investing activitiesSecurities available-for-sale:Proceeds from maturities, calls and repayments
    
    
    3,232,451
    
    
    
    7,740,727Purchases
    
    
    (167,061
    )
    
    
    (1,589
    )Purchase of FHLB stock
    
    
    
    
    
    
    (76,800
    )Proceeds from sale of other real estate
    
    
    10,000
    
    
    
    412,500Net change in loans
    
    
    (10,496,202
    )
    
    
    (13,247,253
    )Premises and equipment expenditures, net
    
    
    (436,157
    )
    
    
    (104,938
    )Net cash used for investing activities
    
    
    (7,856,969
    )
    
    
    (5,277,353
    )Cash flows from financing activitiesNet change in deposits
    
    
    (9,813,169
    )
    
    
    (12,579,387
    )Net change in short-term borrowings
    
    
    5,234,970
    
    
    
    18,472,226Proceeds from other borrowings
    
    
    5,000,000
    
    
    
    Repayment of other borrowings
    
    
    (296,480
    )
    
    
    (5,362,842
    )Purchase of treasury shares
    
    
    (653,983
    )
    
    
    (1,189,164
    )Issuance of treasury shares
    
    
    641
    
    
    
    Cash dividends paid
    
    
    (443,320
    )
    
    
    (410,785
    )Net cash used for financing activities
    
    
    (971,341
    )
    
    
    (1,069,952
    )Net change in cash and cash equivalents
    
    
    (7,263,359
    )
    
    
    (4,299,089
    )Cash and cash equivalents at beginning of period
    
    
    17,653,188
    
    
    
    16,649,976Cash and cash equivalents at end of period
    
    $
    10,389,829
    
    
    $
    12,350,887Supplemental disclosuresInterest paid
    
    $
    3,880,531
    
    
    $
    3,084,518Income taxes paid
    
    
    1,010,000
    
    
    
    411,198Non-cash investing activity-transfer of loans to OREO
    
    
    59,096
    
    
    
    
  6




---



##### Table of Contents



NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    7




---



##### Table of Contents



NOTE 2  SECURITIES
  June 30, 2007
 Gross
    
    
    GrossAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    FairCost
    
    
    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    99,921
    
    
    $
    
    
    
    $
    15
    
    
    $
    99,906Obligations of U.S.
government
corporations and agencies
    
    
    33,494,063
    
    
    
    
    
    
    
    599,223
    
    
    
    32,894,840Mortgage-backed securities
    
    
    25,800,185
    
    
    
    
    
    
    
    626,352
    
    
    
    25,173,833Obligations of states and
political subdivisions
    
    
    5,167,348
    
    
    
    67,819
    
    
    
    6,814
    
    
    
    5,228,353Total debt securities
    
    
    64,561,517
    
    
    
    67,819
    
    
    
    1,232,404
    
    
    
    63,396,932Equity Securities
    
    
    373,120
    
    
    
    9,397
    
    
    
    22,161
    
    
    
    360,356Total available-for-sale
    
    
    64,934,637
    
    
    
    77,216
    
    
    
    1,254,565
    
    
    
    63,757,288Restricted stock
    
    
    3,105,900
    
    
    
    
    
    
    
    
    
    
    
    3,105,900Total securities
    
    $
    68,040,537
    
    
    $
    77,216
    
    
    $
    1,254,565
    
    
    $
    66,863,188
 December 31, 2006
 Gross
    
    
    GrossAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    FairCost
    
    
    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    99,992
    
    
    $
    
    
    
    $
    172
    
    
    $
    99,820Obligations of U.S. government
corporations and agencies
    
    
    33,493,189
    
    
    
    
    
    
    
    576,494
    
    
    
    32,916,695Mortgage-backed securities
    
    
    28,453,336
    
    
    
    591
    
    
    
    405,963
    
    
    
    28,047,964Obligations of states and political subdivisions
    
    
    5,666,915
    
    
    
    103,482
    
    
    
    1,103
    
    
    
    5,769,294Total debt securities
    
    
    67,713,432
    
    
    
    104,073
    
    
    
    983,732
    
    
    
    66,833,773Equity Securities
    
    
    305,965
    
    
    
    8,194
    
    
    
    12,806
    
    
    
    301,353Total available-for-sale
    
    
    68,019,397
    
    
    
    112,267
    
    
    
    996,538
    
    
    
    67,135,126Restricted stock
    
    
    3,105,900
    
    
    
    
    
    
    
    
    
    
    
    3,105,900Total securities
    
    $
    71,125,297
    
    
    $
    112,267
    
    
    $
    996,538
    
    
    $
    70,241,026
 8




---



##### Table of Contents



ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  FORWARD-LOOKING STATEMENTS
   FINANCIAL CONDITION
   9




---



##### Table of Contents



FICO
   RESULTS OF OPERATIONS
 Three months ended June 30, 2007 and 2006
   10




---



##### Table of Contents



Six months ended June 30, 2007 and 2006
    11




---



##### Table of Contents



CAPITAL RESOURCES
  12




---



##### Table of Contents



LIQUIDITY
  OFF-BALANCE SHEET ARRANGEMENTS
  CONTRACTUAL OBLIGATIONS
  RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
 Accounting for Certain Hybrid Instruments, as an amendment of
FASB Statements No. 133 and 140
 Accounting for Servicing of Financial Assets
 13




---



##### Table of Contents



RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS-(continued)
   14




---



##### Table of Contents



ITEM 3  QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
   June 30, 2007
 Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    $
    13,898
    
    
    $
    356
    
    
    
    2.6
    %+100
    
    
    13,674
    
    
    
    132
    
    
    
    1.00
    
    
    13,542
    
    
    
    0
    
    
    
    0.0-100
    
    
    13,480
    
    
    
    (62
    )
    
    
    (0.5
    )-200
    
    
    13,258
    
    
    
    (284
    )
    
    
    (2.1
    )
 December 31, 2006
 Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    $
    14,165
    
    
    $
    682
    
    
    
    5.1
    %+100
    
    
    13,767
    
    
    
    284
    
    
    
    2.10
    
    
    13,483
    
    
    
    0
    
    
    
    0.0-100
    
    
    13,290
    
    
    
    (193
    )
    
    
    (1.4
    )-200
    
    
    12,937
    
    
    
    (546
    )
    
    
    (4.1
    )
 15




---



##### Table of Contents



ITEM 4  CONTROLS AND PROCEDURES
       16




---



##### Table of Contents



ITEM 1 -       LEGAL PROCEEDINGS
  
 ITEM 1A -    RISK FACTORS
  
 ITEM 2 -       UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  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, 2007 to April 30, 2007
    
    None
    
    None
    
    None
    
    
    82,419May 1, 2007 to May 31, 2007
    
    
    35
    
    
    $
    17.65
    
    
    
    35
    
    
    
    82,384June 1, 2007 to June 30, 2007
    
    
    8
    
    
    $
    17.85
    
    
    
    8
    
    
    
    82,376
  
 Item 3 -         Defaults Upon Senior Securities:
  17




---



##### Table of Contents



Item 4 - Submission of Matters to a Vote of Security Holders
  Nominee
    
    For
    
    WithheldJeffrey A. Robb, Sr.
    
    
    1,934,488
    
    
    
    62,944Samuel M. Steimel
    
    
    1,763,963
    
    
    
    233,470John R. Waltman
    
    
    1,885,377
    
    
    
    112,055
  
 
 Item 5 - Other Information:
  18




---



##### Table of Contents



Item 6 - Exhibits:
 ExhibitNumber
    
    Description of Document11
    
    Statement Regarding Computation of Per Share Earnings (reference
is hereby made to Consolidated Statements of Income on page 4 hereof.)31.1
    
    Rule 13a-14(a)/15d-14(a) CEOs Certification31.2
    
    Rule 13a-14(a)/15d-14(a) CFOs Certification32.1
    
    Section 1350 CEOs Certification32.2
    
    Section 1350 CFOs Certification
 19




---



##### Table of Contents



CSB BANCORP, INC.(Registrant)Date: August 10, 2007
    /s/ Eddie L. SteinerEddie L. SteinerPresident
Chief Executive OfficerDate: August 10, 2007
    /s/ Paula J. MeilerPaula J. MeilerSenior Vice President
Chief Financial Officer 20




---



##### Table of Contents



Exhibit
    
    
    
    SequentialNumber
    
    Description of Document
    
    Page11
    
    Statement Regarding Computation of Per Share Earnings
(reference is hereby made to Consolidated Statements of Income on
page 4 hereof.)31.1
    
    Rule 13a-14(a)/15d-14(a) CEOs Certification31.2
    
    Rule 13a-14(a)/15d-14(a) CFOs Certification32.1
    
    Section 1350 CEOs Certification32.2
    
    Section 1350 CFOs Certification
 21