##### 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: March 31, 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 
incorporation or organization)
    
    (I.R.S. Employer Identification Number)
 
 
  þ o
  o o þ
  o þ
  Common stock, $6.25 par value
    
    Outstanding at May 11, 2007:2,462,931 common shares




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##### 



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 Unaudited 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
    
    
    14ITEM 4  CONTROLS AND PROCEDURES
    
    
    15Part II  Other InformationITEM 1   Legal Proceedings
    
    
    161A  Risk Factors
    
    
    162   Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    163   Defaults upon Senior Securities
    
    
    164   Submission of Matters to a Vote of Security Holders
    
    
    165   Other Information
    
    
    166   Exhibits
    
    
    17Signatures
    
    
    18EX-11EX-31.1EX-31.2EX-32.1EX-32.2




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March 31,
    
    
    December 31,2007
    
    
    2006ASSETSCash and due from banks
    
    $
    10,198,513
    
    
    $
    12,643,440Interest-earning deposits in other banks
    
    
    70,670
    
    
    
    9,748Federal funds sold
    
    
    
    
    
    
    5,000,000Total cash and cash equivalents
    
    
    10,269,183
    
    
    
    17,653,188Securities available-for-sale, at fair value
    
    
    66,134,517
    
    
    
    67,135,126Restricted stock, at cost
    
    
    3,105,900
    
    
    
    3,105,900Total securities
    
    
    69,240,417
    
    
    
    70,241,026Loans held for sale
    
    
    241,000
    
    
    
    Loans
    
    
    235,576,903
    
    
    
    232,431,938Less allowance for loan losses
    
    
    2,654,708
    
    
    
    2,607,118Net loans
    
    
    232,922,195
    
    
    
    229,824,820Premises and equipment, net
    
    
    7,423,736
    
    
    
    7,390,182Accrued interest receivable and other assets
    
    
    2,309,077
    
    
    
    2,130,631Total Assets
    
    $
    322,405,608
    
    
    $
    327,239,847LIABILITIESDepositsNoninterest-bearing
    
    $
    40,572,661
    
    
    $
    44,455,131Interest-bearing
    
    
    212,958,600
    
    
    
    215,722,541Total deposits
    
    
    253,531,261
    
    
    
    260,177,672Short-term borrowings
    
    
    24,687,771
    
    
    
    28,022,077Other borrowings
    
    
    7,325,288
    
    
    
    2,499,399Accrued interest payable and other liabilities
    
    
    1,946,062
    
    
    
    1,470,379Total liabilities
    
    
    287,490,382
    
    
    
    292,169,527SHAREHOLDERS EQUITYCommon stock, $6.25 par value: Authorized 9,000,000shares; issued 2,667,786 shares
    
    
    16,673,667
    
    
    
    16,673,667Additional paid-in capital
    
    
    6,439,015
    
    
    
    6,427,765Retained earnings
    
    
    16,619,211
    
    
    
    16,248,608Treasury stock at cost: 204,855 shares in 2007 and
168,605 shares in 2006
    
    
    (4,348,094
    )
    
    
    (3,696,102
    )Accumulated other comprehensive loss
    
    
    (468,573
    )
    
    
    (583,618
    )Total shareholders equity
    
    
    34,915,226
    
    
    
    35,070,320Total Liabilities and Shareholders Equity
    
    $
    322,405,608
    
    
    $
    327,239,847
  3.




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Three Months EndedMarch 31,2007
    
    
    2006Interest incomeLoans, including fees
    
    $
    4,314,520
    
    
    $
    3,822,504Taxable securities
    
    
    750,057
    
    
    
    777,800Nontaxable securities
    
    
    68,511
    
    
    
    101,823Other
    
    
    13,194
    
    
    
    6,592Total interest income
    
    
    5,146,282
    
    
    
    4,708,719Interest expenseDeposits
    
    
    1,553,362
    
    
    
    1,166,920Other
    
    
    337,628
    
    
    
    247,526Total interest expense
    
    
    1,890,990
    
    
    
    1,414,446Net interest income
    
    
    3,255,292
    
    
    
    3,294,273Provision for loan losses
    
    
    78,005
    
    
    
    32,000Net interest income after provision
for loan losses
    
    
    3,177,287
    
    
    
    3,262,273Non-interest incomeService charges on deposit accounts
    
    
    275,471
    
    
    
    315,086Trust and financial services
    
    
    169,637
    
    
    
    92,242Other income
    
    
    200,993
    
    
    
    163,115Total non-interest income
    
    
    646,101
    
    
    
    570,443Non-interest expensesSalaries and employee benefits
    
    
    1,407,180
    
    
    
    1,491,005Occupancy expense
    
    
    184,553
    
    
    
    171,213Equipment expense
    
    
    115,918
    
    
    
    136,136State franchise tax
    
    
    101,338
    
    
    
    109,200Professional and director fees
    
    
    141,382
    
    
    
    174,020Other expenses
    
    
    669,505
    
    
    
    626,236Total non-interest expenses
    
    
    2,619,876
    
    
    
    2,707,810Income before income taxes
    
    
    1,203,512
    
    
    
    1,124,906Federal income tax provision
    
    
    389,000
    
    
    
    351,000Net income
    
    $
    814,512
    
    
    $
    773,906Basic and diluted earnings
per share
    
    $
    0.33
    
    
    $
    0.30
  4.




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Three Months EndedMarch 31,2007
    
    
    2006Balance at beginning of period
    
    $
    35,070,320
    
    
    $
    35,170,259Comprehensive income:Net income
    
    
    814,512
    
    
    
    773,906Change in net unrealized
gain (loss), and related
income taxes $59,266 and
($158,923), respectively
    
    
    115,045
    
    
    
    (308,497
    )Total comprehensive income
    
    
    929,557
    
    
    
    465,409Issuance of 40 shares from treasury
    
    
    641
    
    
    
    Stock-based compensation expense
    
    
    11,250
    
    
    
    2,525Purchase of treasury shares
    
    
    (653,222
    )
    
    
    (235,724
    )Cash dividends declared($0.18 per share in
2007, and $0.16
per share in 2006)
    
    
    (443,320
    )
    
    
    (410,785
    )Balance at end of period
    
    $
    34,915,226
    
    
    $
    34,991,684
  5.




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Three Months EndedMarch 31,2007
    
    
    2006Net cash from operating activities
    
    $
    896,368
    
    
    $
    1,134,053Cash flows from investing activitiesSecurities available-for-sale:Proceeds from maturities, calls and repayments
    
    
    1,331,608
    
    
    
    1,928,276Purchases
    
    
    (167,061
    )
    
    
    (1,589
    )Purchase of FHLB stock
    
    
    
    
    
    
    (37,900
    )Proceeds from sale of other real estate
    
    
    10,000
    
    
    
    Net change in loans
    
    
    (3,234,547
    )
    
    
    (6,127,352
    )Net change in loans held for sale
    
    
    (241,000
    )
    
    
    (242,212
    )Premises and equipment expenditures, net
    
    
    (171,964
    )
    
    
    (68,810
    )Net cash used for investing activities
    
    
    (2,472,964
    )
    
    
    (4,549,587
    )Cash flows from financing activitiesNet change in deposits
    
    
    (6,646,411
    )
    
    
    (8,358,503
    )Net change in short-term borrowings
    
    
    (3,334,306
    )
    
    
    10,889,608Proceeds from other borrowings
    
    
    5,000,000
    
    
    
    Repayment of other borrowings
    
    
    174,111
    
    
    
    (5,214,917
    )Purchase of treasury shares
    
    
    (653,222
    )
    
    
    (235,724
    )Issuance of treasury shares
    
    
    641
    
    
    
    Net cash used for financing activities
    
    
    (5,807,409
    )
    
    
    (2,919,536
    )Net change in cash and cash equivalents
    
    
    (7,384,005
    )
    
    
    (6,335,070
    )Cash and cash equivalents at beginning of period
    
    
    17,653,188
    
    
    
    16,649,976Cash and cash equivalents at end of period
    
    $
    10,269,183
    
    
    $
    10,314,906Supplemental disclosuresInterest paid
    
    $
    1,911,848
    
    
    $
    1,403,819Income taxes paid
    
    
    250,000
    
    
    
    100,000Non-cash investing activity-transfer of loans to OREO
    
    
    59,096
    
    
    
    
  6.




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NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    7.




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NOTE 2  SECURITIES
  March 31, 2007
 Gross unrealized
    
    
    Gross unrealized
    
    
    FairAmortized Cost
    
    
    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    99,907
    
    
    $
    558
    
    
    $
    
    
    
    $
    100,465Obligations of U.S.
government
corporations and agencies
    
    
    33,493,625
    
    
    
    
    
    
    
    466,340
    
    
    
    33,027,285Mortgage-backed securities
    
    
    27,211,083
    
    
    
    4,648
    
    
    
    343,202
    
    
    
    26,872,529Obligations of states and
political subdivisions
    
    
    5,666,867
    
    
    
    95,038
    
    
    
    1,773
    
    
    
    5,760,132Total debt securities
    
    
    66,471,472
    
    
    
    100,244
    
    
    
    811,315
    
    
    
    65,760,411Equity Securities
    
    
    373,120
    
    
    
    17,617
    
    
    
    16,631
    
    
    
    374,106Total available-for-sale
    
    
    66,844,602
    
    
    
    117,861
    
    
    
    827,946
    
    
    
    66,134,517Restricted stock
    
    
    3,105,900
    
    
    
    
    
    
    
    
    
    
    
    3,105,900Total securities
    
    $
    69,950,502
    
    
    $
    117,861
    
    
    $
    827,946
    
    
    $
    69,240,417
 December 31, 2006
 Gross unrealized
    
    
    Gross unrealized
    
    
    FairAmortized Cost
    
    
    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.




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




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RESULTS OF OPERATIONS
 Three months ended March 31, 2007 and 2006
   10.




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CAPITAL RESOURCES
  LIQUIDITY
  11.




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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 which is an amendment to FAS No. 140
   12.




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13.




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ITEM 3  QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
   March 31, 2007
 Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    $
    13,979
    
    
    $
    540
    
    
    
    4.0
    %+100
    
    
    13,663
    
    
    
    224
    
    
    
    1.70
    
    
    13,439
    
    
    
    0
    
    
    
    0.0-100
    
    
    13,306
    
    
    
    (133
    )
    
    
    (1.0
    )-200
    
    
    13,028
    
    
    
    (411
    )
    
    
    (3.1
    )
 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
    )
 14.




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ITEM 4  CONTROLS AND PROCEDURES
       15.




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ITEM 1 
    
    LEGAL PROCEEDINGSThere are no matters required to be reported under this item.
 
 ITEM 1A 
    
    RISK FACTORSThere 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, 2006.
 
 ITEM 2 
    
    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDSThere are no matters required to be reported under this item.
 Issuer 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 PlanJanuary 1, 2007 to
January 31, 2007
    
    None
    
    None
    
    None
    
    
    118,709February 1, 2007 to
February 28, 2007
    
    None
    
    None
    
    None
    
    
    118,709March 1, 2007 to
March 31, 2007
    
    
    36,290
    
    
    $
    18.00
    
    
    
    36,290
    
    
    
    82,419
 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 
    
    Submission of Matters to a Vote of Security Holders:There are no matters required to be reported under this item.
 
 Item 5 
    
    Other Information:There are no matters required to be reported under this item.
 16.




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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
 17.




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CSB BANCORP, INC.
(Registrant)Date: May 11, 2007
    /s/ Eddie L. SteinerEddie L. SteinerPresident
Chief Executive OfficerDate: May  11, 2007
    /s/ Paula J. MeilerPaula J. MeilerSenior Vice President
Chief Financial Officer 18.




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##### 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
 19.