##### 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, 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.
  Ohio
    
    34-1687530(State or other jurisdiction of
    
    (I.R.S. Employer Identification Number)incorporation or organization)
 
 
 þ o
 o o
  Large accelerated filer oAccelerated filer oNon-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 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
    
    
    16ITEM 3   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    
    
    21ITEM 4T   CONTROLS AND PROCEDURES
    
    
    22Part II  Other InformationITEM 1   Legal Proceedings
    
    
    231A  Risk Factors
    
    
    232  Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    233   Defaults upon Senior Securities
    
    
    234   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




---



##### Table of Contents



September 30,
    
    
    December 31,2009
    
    
    2008ASSETSCash and due from bank
    
    $
    8,681,607
    
    
    $
    8,698,917Interest-earning deposits in other banks
    
    
    13,258,887
    
    
    
    2,961,153Federal funds sold
    
    
    
    
    
    
    1,086,000Total cash and cash equivalents
    
    
    21,940,494
    
    
    
    12,746,070Securities available-for-sale, at fair value
    
    
    72,614,370
    
    
    
    76,655,816Restricted stock, at cost
    
    
    5,463,100
    
    
    
    5,231,800Total securities
    
    
    78,077,470
    
    
    
    81,887,616Loans
    
    
    314,717,245
    
    
    
    316,290,412Less allowance for loan losses
    
    
    3,696,698
    
    
    
    3,393,685Net loans
    
    
    311,020,547
    
    
    
    312,896,727Premises and equipment, net
    
    
    8,541,328
    
    
    
    8,470,855Bank owned life insurance
    
    
    2,827,263
    
    
    
    2,748,909Other intangible assets
    
    
    607,493
    
    
    
    597,014Goodwill
    
    
    1,423,171
    
    
    
    1,448,029Accrued interest receivable and other assets
    
    
    2,952,797
    
    
    
    3,861,962Total Assets
    
    $
    427,390,563
    
    
    $
    424,657,182LIABILITIESDepositsNoninterest-bearing
    
    $
    46,366,578
    
    
    $
    49,058,592Interest-bearing
    
    
    256,531,562
    
    
    
    256,394,147Total deposits
    
    
    302,898,140
    
    
    
    305,452,739Short-term borrowings
    
    
    27,056,770
    
    
    
    22,891,593Other borrowings
    
    
    49,857,842
    
    
    
    50,997,537Accrued interest payable and other liabilities
    
    
    1,997,904
    
    
    
    1,846,841Total liabilities
    
    
    381,810,656
    
    
    
    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
    
    
    9,992,329
    
    
    
    9,986,499Retained earnings
    
    
    20,707,496
    
    
    
    19,723,972Treasury stock at cost: 245,803 shares
    
    
    (5,014,541
    )
    
    
    (5,014,541
    )Accumulated other comprehensive income
    
    
    1,265,856
    
    
    
    143,775Total shareholders equity
    
    
    45,579,907
    
    
    
    43,468,472Total Liabilities and Shareholders Equity
    
    $
    427,390,563
    
    
    $
    424,657,182




---



##### Table of Contents



Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Interest incomeLoans, including fees
    
    $
    4,565,909
    
    
    $
    4,073,175
    
    
    $
    13,768,953
    
    
    $
    12,503,136Taxable securities
    
    
    776,162
    
    
    
    800,062
    
    
    
    2,461,570
    
    
    
    2,377,551Nontaxable securities
    
    
    84,281
    
    
    
    60,088
    
    
    
    232,203
    
    
    
    159,510Other
    
    
    7,979
    
    
    
    32,992
    
    
    
    16,835
    
    
    
    102,863Total interest income
    
    
    5,434,331
    
    
    
    4,966,317
    
    
    
    16,479,561
    
    
    
    15,143,060Interest expenseDeposits
    
    
    1,055,240
    
    
    
    1,068,797
    
    
    
    3,353,042
    
    
    
    3,662,709Other
    
    
    514,514
    
    
    
    457,693
    
    
    
    1,536,315
    
    
    
    1,374,994Total interest expense
    
    
    1,569,754
    
    
    
    1,526,490
    
    
    
    4,889,357
    
    
    
    5,037,703Net interest income
    
    
    3,864,577
    
    
    
    3,439,827
    
    
    
    11,590,204
    
    
    
    10,105,357Provision for loan losses
    
    
    292,952
    
    
    
    107,031
    
    
    
    928,092
    
    
    
    261,740Net interest income after provision for loan losses
    
    
    3,571,625
    
    
    
    3,332,796
    
    
    
    10,662,112
    
    
    
    9,843,617Non-interest incomeService charges on deposit accounts
    
    
    313,269
    
    
    
    326,006
    
    
    
    930,779
    
    
    
    952,414Trust and financial services
    
    
    172,555
    
    
    
    138,128
    
    
    
    406,930
    
    
    
    489,360Debit card interchange fees
    
    
    101,268
    
    
    
    81,805
    
    
    
    282,991
    
    
    
    232,995Gain on sale of loans
    
    
    172,466
    
    
    
    9,475
    
    
    
    356,926
    
    
    
    281,309Securities (losses) gains
    
    
    (33,613
    )
    
    
    (35,000
    )
    
    
    81,890
    
    
    
    (35,000
    )Other income
    
    
    144,166
    
    
    
    153,198
    
    
    
    386,849
    
    
    
    387,966Total non-interest income
    
    
    870,111
    
    
    
    673,612
    
    
    
    2,446,365
    
    
    
    2,309,044Non-interest expensesSalaries and employee benefits
    
    
    1,747,309
    
    
    
    1,532,758
    
    
    
    5,151,886
    
    
    
    4,596,823Occupancy expense
    
    
    265,563
    
    
    
    183,735
    
    
    
    739,725
    
    
    
    566,531Equipment expense
    
    
    131,479
    
    
    
    122,541
    
    
    
    403,175
    
    
    
    367,312State franchise tax
    
    
    134,950
    
    
    
    108,560
    
    
    
    371,320
    
    
    
    323,370Professional and director fees
    
    
    157,137
    
    
    
    95,454
    
    
    
    485,453
    
    
    
    375,353FDIC deposit insurance
    
    
    105,100
    
    
    
    20,000
    
    
    
    496,300
    
    
    
    34,585Amortization of intangible assets
    
    
    16,227
    
    
    
    
    
    
    
    48,772
    
    
    
    Other expenses
    
    
    629,949
    
    
    
    598,796
    
    
    
    1,830,230
    
    
    
    1,743,601Total non-interest expenses
    
    
    3,187,714
    
    
    
    2,661,844
    
    
    
    9,526,861
    
    
    
    8,007,575Income before income taxes
    
    
    1,254,022
    
    
    
    1,344,564
    
    
    
    3,581,616
    
    
    
    4,145,086Federal income tax provision
    
    
    395,700
    
    
    
    454,000
    
    
    
    1,121,300
    
    
    
    1,375,000Net income
    
    $
    858,322
    
    
    $
    890,564
    
    
    $
    2,460,316
    
    
    $
    2,770,086Basic and diluted earnings per share
    
    $
    0.31
    
    
    $
    0.37
    
    
    $
    0.90
    
    
    $
    1.14




---



##### Table of Contents



Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Balance at beginning of period
    
    $
    44,678,325
    
    
    $
    36,577,306
    
    
    $
    43,468,472
    
    
    $
    36,278,048Comprehensive income:Net income
    
    
    858,322
    
    
    
    890,564
    
    
    
    2,460,316
    
    
    
    2,770,086Change in net unrealized
gain, net of
reclassification
adjustments and related
income taxes $274,391,
$245,875, $578,042, and
$92,263, respectively
    
    
    532,642
    
    
    
    477,287
    
    
    
    1,122,081
    
    
    
    179,098Total comprehensive income
    
    
    1,390,964
    
    
    
    1,367,851
    
    
    
    3,582,397
    
    
    
    2,949,184Stock-based compensation expense
    
    
    2,882
    
    
    
    3,750
    
    
    
    5,830
    
    
    
    11,250Purchase of treasury shares
    
    
    
    
    
    
    (1,006
    )
    
    
    
    
    
    
    (415,259
    )Cash
dividends declared ($0.18 for the three months
and $0.54 for the nine months per share in 2009 and
2008)
    
    
    (492,264
    )
    
    
    (435,957
    )
    
    
    (1,476,792
    )
    
    
    (1,311,279
    )Balance at end of period
    
    $
    45,579,907
    
    
    $
    37,511,944
    
    
    $
    45,579,907
    
    
    $
    37,511,944




---



##### Table of Contents



Nine Months EndedSeptember 30,2009
    
    
    2008Net cash provided by operating activities
    
    $
    3,377,602
    
    
    $
    3,384,940Cash flows from investing activitiesSecurities available-for-sale:Proceeds from maturities, calls and repayments
    
    
    25,446,408
    
    
    
    17,869,675Proceeds from sales
    
    
    1,305,425
    
    
    
    Purchases
    
    
    (20,978,926
    )
    
    
    (13,611,007
    )Purchase of Federal Reserve Bank stock
    
    
    (231,300
    )
    
    
    (114,900
    )Proceeds from sale of other real estate
    
    
    83,500
    
    
    
    105,000Loan originations, net of repayments
    
    
    843,888
    
    
    
    (1,983,166
    )Proceeds from sale of credit cards
    
    
    
    
    
    
    2,513,671Premises and equipment expenditures, net
    
    
    (632,313
    )
    
    
    (320,292
    )Net cash provided by investing activities
    
    
    5,836,682
    
    
    
    4,458,981Cash flows from financing activitiesNet change in deposits
    
    
    (2,374,007
    )
    
    
    (13,433,237
    )Net change in short-term borrowings
    
    
    4,165,177
    
    
    
    (2,548,323
    )Proceeds from other borrowings
    
    
    
    
    
    
    8,000,000Repayment of other borrowings
    
    
    (826,502
    )
    
    
    (341,890
    )Purchase of treasury shares
    
    
    
    
    
    
    (415,259
    )Cash dividends paid
    
    
    (984,528
    )
    
    
    (875,322
    )Net cash used for financing activities
    
    
    (19,860
    )
    
    
    (9,614,031
    )Net change in cash and cash equivalents
    
    
    9,194,424
    
    
    
    (1,770,110
    )Cash and cash equivalents at beginning of period
    
    
    12,746,070
    
    
    
    12,193,362Cash and cash equivalents at end of period
    
    $
    21,940,494
    
    
    $
    10,423,252Supplemental disclosuresInterest paid
    
    $
    5,380,325
    
    
    $
    5,120,995Income taxes paid
    
    
    920,000
    
    
    
    1,326,000
  6.




---



##### Table of Contents



NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
 Topic 105  Generally Accepted Accounting Principles  FASB Accounting
Standards Codification and the Hierarchy of Generally Accepted Accounting Principles
   7.




---



##### Table of Contents



RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS-(continued)
  Fair Value Measurements
and Disclosures
 Financial Instruments
 Investments  Debt and Equity
Securities
  8.




---



##### Table of Contents



NOTE 2  SECURITIES
  September 30, 2009
 Gross
    
    
    GrossAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    FairCost
    
    
    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    100,530
    
    
    $
    142
    
    
    $
    
    
    
    $
    100,672Obligations of U.S.
government
corporations and agencies
    
    
    10,186,745
    
    
    
    7,829
    
    
    
    24,204
    
    
    
    10,170,370Mortgage-backed securities
    
    
    51,441,268
    
    
    
    1,890,761
    
    
    
    180,179
    
    
    
    53,151,850Obligations of states and
political subdivisions
    
    
    8,903,053
    
    
    
    236,866
    
    
    
    862
    
    
    
    9,139,057Total debt securities
    
    
    70,631,596
    
    
    
    2,135,598
    
    
    
    205,245
    
    
    
    72,561,949Equity Securities
    
    
    64,811
    
    
    
    285
    
    
    
    12,675
    
    
    
    52,421Total available-for-sale
    
    
    70,696,407
    
    
    
    2,135,883
    
    
    
    217,920
    
    
    
    72,614,370Restricted stock
    
    
    5,463,100
    
    
    
    
    
    
    
    
    
    
    
    5,463,100Total securities
    
    $
    76,159,507
    
    
    $
    2,135,883
    
    
    $
    217,920
    
    
    $
    78,077,470
 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
  Available-for-sale
    
    Amortized Cost
    
    
    Fair ValueDue in one year or less
    
    $
    3,818,603
    
    
    $
    3,841,296Due after one through five years
    
    
    2,957,178
    
    
    
    2,980,738Due after five years through ten years
    
    
    15,232,643
    
    
    
    15,508,162Due after ten years
    
    
    48,623,172
    
    
    
    50,231,753Total debt securities available-for-sale
    
    $
    70,631,596
    
    
    $
    72,561,949
 9.




---



##### Table of Contents



NOTE 2  SECURITIES
 Realized Gains and Losses
  Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Proceeds
    
    $
    8,484
    
    
    $
    
    
    
    $
    1,305,425
    
    
    $
    Realized gains
    
    $
    1,387
    
    
    $
    
    
    
    $
    152,467
    
    
    $
    Realized losses
    
    
    
    
    
    
    
    
    
    
    577
    
    
    
    Impairment losses
    
    
    35,000
    
    
    
    35,000
    
    
    
    70,000
    
    
    
    35,000Net securities
(losses) gains
    
    $
    (33,613
    )
    
    $
    (35,000
    )
    
    $
    81,890
    
    
    $
    (35,000
    )
  10.




---



##### Table of Contents



NOTE 2  SECURITIES
  Securities in a Continuous Unrealized Loss Position
 Less than 12 Months
    
    
    12 Months or More
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossUnrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    FairSeptember 30, 2009
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    ValueObligations of U.S.
government corporations
and agencies
    
    $
    24,204
    
    
    $
    4,983,200
    
    
    $
    
    
    
    $
    
    
    
    $
    24,204
    
    
    $
    4,983,200Mortgage-backed securities
    
    
    13,326
    
    
    
    2,478,502
    
    
    
    166,853
    
    
    
    2,491,340
    
    
    
    180,179
    
    
    
    4,969,842Obligations of state &
political subdivisions
    
    
    862
    
    
    
    802,095
    
    
    
    
    
    
    
    
    
    
    
    862
    
    
    
    802,095Total debt securities
    
    
    38,392
    
    
    
    8,263,797
    
    
    
    166,853
    
    
    
    2,491,340
    
    
    
    205,245
    
    
    
    10,755,137Equity securities
    
    
    
    
    
    
    
    
    
    
    12,674
    
    
    
    41,061
    
    
    
    12,674
    
    
    
    41,061Total temporarily
impaired securities
    
    $
    38,392
    
    
    $
    8,263,797
    
    
    $
    179,527
    
    
    $
    2,532,401
    
    
    $
    217,919
    
    
    $
    10,796,198
 Securities in a Continuous Unrealized Loss Position
 Less 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
 NOTE 3  FAIR VALUE MEASUREMENTS
  11.




---



##### Table of Contents



NOTE 3  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
    
    
    TotalSeptember 30, 2009Assets:Securities available-for-saleU.S. Treasury security
    
    $
    100,672
    
    
    $
    
    
    
    $
    
    
    
    $
    100,672Obligations of U.S. government
corporations and agencies
    
    
    
    
    
    
    10,170,370
    
    
    
    
    
    
    
    10,170,370Mortgage-backed securities
    
    
    
    
    
    
    53,151,850
    
    
    
    
    
    
    
    53,151,850Obligations of states and
political subdivisions
    
    
    
    
    
    
    9,139,057
    
    
    
    
    
    
    
    9,139,057Total debt securities
    
    
    
    
    
    
    72,461,277
    
    
    
    
    
    
    
    72,561,949Equity Securities
    
    
    52,421
    
    
    
    
    
    
    
    
    
    
    
    52,421Total available-for-sale securities
    
    $
    153,093
    
    
    $
    72,461,277
    
    
    $
    
    
    
    $
    72,614,370December 31, 2008Securities available-for-saleU.S. Treasury security
    
    $
    100,461
    
    
    $
    
    
    
    $
    
    
    
    $
    100,461Obligations of U.S. government
corporations and agencies
    
    
    
    
    
    
    12,540,356
    
    
    
    
    
    
    
    12,540,356Mortgage-backed securities
    
    
    
    
    
    
    56,898,945
    
    
    
    
    
    
    
    56,898,945Obligations of states and
political subdivisions
    
    
    
    
    
    
    7,040,296
    
    
    
    
    
    
    
    7,040,296Total debt securities
    
    
    
    
    
    
    76,479,597
    
    
    
    
    
    
    
    76,580,058Equity Securities
    
    
    75,758
    
    
    
    
    
    
    
    
    
    
    
    75,758Total available-for-sale securities
    
    $
    176,219
    
    
    $
    76,479,597
    
    
    $
    
    
    
    $
    76,655,816
 12.




---



##### Table of Contents



NOTE 3  FAIR VALUE MEASUREMENTS
  Level I
    
    Level II
    
    Level III
    
    TotalSeptember 30, 2009Assets Measured on a Nonrecurring Basis:Impaired loans
    
    $
    
    
    
    $
    2,253,831
    
    
    $
    
    
    
    $
    2,253,831December 31, 2008Impaired loans
    
    $
    
    
    
    $
    2,049,171
    
    
    $
    
    
    
    $
    2,049,171
 NOTE 4  FAIR VALUES OF FINANCIAL INSTRUMENTS
  2009
    
    2008Carrying
    
    Fair
    
    Carrying
    
    Fair(Dollars in thousands)
    
    value
    
    value
    
    value
    
    valueFinancial assets:Cash and cash equivalents
    
    $
    21,940
    
    
    $
    21,940
    
    
    $
    12,746
    
    
    $
    12,746Securities
    
    
    78,077
    
    
    
    78,077
    
    
    
    81,888
    
    
    
    81,888Loans, net
    
    
    311,021
    
    
    
    321,124
    
    
    
    312,897
    
    
    
    321,924Accrued Interest Receivable
    
    
    1,344
    
    
    
    1,344
    
    
    
    1,386
    
    
    
    1,386Financial liabilities:Deposits
    
    $
    302,898
    
    
    $
    304,314
    
    
    $
    305,453
    
    
    $
    308,213Short-term borrowings
    
    
    27,057
    
    
    
    27,057
    
    
    
    22,892
    
    
    
    22,892Other borrowings
    
    
    49,858
    
    
    
    52,021
    
    
    
    50,998
    
    
    
    53,073Accrued Interest Payable
    
    
    241
    
    
    
    241
    
    
    
    417
    
    
    
    417
  Cash and cash equivalents; Accrued interest receivable; Short term borrowings, Accrued interest payable
  Securities
  13.




---



##### Table of Contents



NOTE 4  FAIR VALUES OF FINANCIAL INSTRUMENTS
 Loans, net
  Deposits and Other Borrowed Funds
    14.




---



##### Table of Contents



NOTE 5  BUSINESS COMBINATION
   For the three months
    
    For the nine monthsended September 30,
    
    ended September 30,(in thousands, except per share amounts)
    
    2009
    
    2008
    
    2009
    
    2008Net interest income
    
    $
    3,865
    
    
    $
    3,996
    
    
    $
    11,590
    
    
    $
    11,863Provision for loan losses
    
    
    293
    
    
    
    407
    
    
    
    928
    
    
    
    719Non-interest income
    
    
    870
    
    
    
    781
    
    
    
    2,446
    
    
    
    2,433Non-interest expense
    
    
    3,188
    
    
    
    3,279
    
    
    
    9,527
    
    
    
    9,853Net income
    
    $
    858
    
    
    $
    723
    
    
    $
    2,460
    
    
    $
    2,585Net income per common shareBasic
    
    $
    0.31
    
    
    $
    0.26
    
    
    $
    0.90
    
    
    $
    0.94Diluted
    
    $
    0.31
    
    
    $
    0.26
    
    
    $
    0.90
    
    
    $
    0.94
 NOTE 6  SUBSEQUENT EVENTS
  15.




---



##### Table of Contents



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




---



##### Table of Contents



September 30, 2009
    
    June 30, 2009
    
    December 31, 2008Non-performing loans
    
    $
    4,504,000
    
    
    $
    4,071,028
    
    
    $
    2,642,728Other real estate
    
    
    40,000
    
    
    
    52,000
    
    
    
    79,000Allowance for loan losses
    
    
    3,696,698
    
    
    
    3,397,920
    
    
    
    3,393,685Total loans
    
    
    314,717,245
    
    
    
    317,879,674
    
    
    
    316,290,412Allowance: loans
    
    
    1.17
    %
    
    
    1.07
    %
    
    
    1.07
    %30-89 day loan delinquency
    
    
    2,207,000
    
    
    
    1,581,869
    
    
    
    3,111,000Allowance: non-performing loans
    
    
    0.8x
    
    
    
    0.8x
    
    
    
    1.3xNon-performing assets: total
assets
    
    
    1.06
    %
    
    
    1.00
    %
    
    
    0.64
    %
     17.




---



##### Table of Contents



RESULTS OF OPERATIONS
 Three months ended September 30, 2009 and 2008
       18.




---



##### Table of Contents



Nine months ended September 30, 2009 and 2008
       19.




---



##### Table of Contents



CAPITAL RESOURCES
  LIQUIDITY
  OFF-BALANCE SHEET ARRANGEMENTS
  20.




---



##### Table of Contents



ITEM 3 QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
   September 30, 2009
 Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    
    $
    16,321
    
    
    $
    841
    
    
    
    5.4
    %+100
    
    
    
    15,858
    
    
    
    378
    
    
    
    2.4
    %0
    
    
    
    15,480
    
    
    
    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
 21.




---



##### Table of Contents



ITEM 4T  CONTROLS AND PROCEDURES
     CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
  22.




---



##### Table of Contents



ITEM 1  LEGAL PROCEEDINGS
  
 ITEM 1A  RISK FACTORS
  
 ITEM 2  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  ssuer Purchase of Equity Securities
 Total Number of
    
    Maximum Number ofShares Purchased as
    
    Shares that May YetTotal Number of
    
    Average Price Paid
    
    Part of Publicly
    
    be Purchased UnderPeriod
    
    Shares Purchased
    
    Per Share
    
    Announced Plans
    
    the PlanJuly 1,
2009 to July 31, 2009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,471August 1,
2009 to August 31, 2009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,471September 1,
2009 to September 30, 2009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,471
  
 Item 3  Defaults Upon Senior Securities:
  
 Item 4  Submission of Matters to a Vote of Security Holders
  
 Item 5  Other Information:
  23.




---



##### 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.




---



##### Table of Contents



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




---



##### 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.