##### 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, 2005
 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)
 6 W. Jackson Street, P.O. Box 232, Millersburg, Ohio 44654
  (330) 674-9015(Registrants telephone number)
  þ o
  o þ
  o þ
  Common stock, $6.25 par value
    
    Outstanding at October 30, 2005
2,644,952 common shares




---



PagePart I  Financial InformationITEM 1  FINANCIAL STATEMENTS (unaudited)Consolidated Balance Sheets as of September 30, 2005 and December 31, 2004
    
    
    3Consolidated Statements of Income for the three and nine months ended September 30, 2005 and 2004
    
    
    4Consolidated Statements of Changes in Shareholders Equity for the three and nine months ended September 30, 2005 and 2004
    
    
    5Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2005 and 2004
    
    
    6Notes to Consolidated Financial Statements
    
    
    7ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    10ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    
    
    15ITEM 4  CONTROLS AND PROCEDURES
    
    
    16Part II  Other InformationITEM 1  Legal Proceedings
    
    
    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
    
    
    175 - Other Information
    
    
    176 - Exhibits
    
    
    18Signatures
    
    
    19Exhibit 11 Statement Regarding Computation of Per Share EarningsExhibit 31.1 302 Certification for CEOExhibit 31.2 302 Certification for CFOExhibit 32.1 906 Certification for CEOExhibit 32.2 906 Certification for CFO




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September 30,
    
    
    December 31,2005
    
    
    2004ASSETSCash and due from banks
    
    $
    11,938,439
    
    
    $
    12,501,954Interest-bearing deposits with other banks
    
    
    91,548
    
    
    
    142,338Federal funds sold
    
    
    8,100,000
    
    
    
    3,000,000Total cash and cash equivalents
    
    
    20,129,987
    
    
    
    15,644,292Securities available-for-sale, at fair value
    
    
    69,239,311
    
    
    
    73,438,070Loans
    
    
    218,576,725
    
    
    
    218,084,479Less allowance for loan loans
    
    
    2,443,973
    
    
    
    2,574,945Net loans
    
    
    216,132,752
    
    
    
    215,509,534Premises and equipment, net
    
    
    7,803,867
    
    
    
    7,709,439Restricted stock, at cost
    
    
    2,908,800
    
    
    
    2,790,400Accrued interest receivable and other assets
    
    
    3,196,799
    
    
    
    2,248,608Total assets
    
    $
    319,411,516
    
    
    $
    317,340,343LIABILITIESDepositsNoninterest-bearing
    
    $
    37,906,796
    
    
    $
    41,733,596Interest-bearing
    
    
    217,838,198
    
    
    
    206,217,123Total deposits
    
    
    255,744,994
    
    
    
    247,950,719Securities sold under repurchase agreements
    
    
    12,659,268
    
    
    
    13,316,473Federal Home Loan Bank borrowings
    
    
    13,184,171
    
    
    
    18,745,236Federal funds purchasedAccrued interest payable and other liabilities
    
    
    1,430,951
    
    
    
    1,120,408Total liabilities
    
    
    283,019,384
    
    
    
    281,132,836SHAREHOLDERS 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
    
    
    6,413,915
    
    
    
    6,413,915Retained earnings
    
    
    14,217,302
    
    
    
    13,358,321Treasury stock at cost: 22,834 shares in 2005 and
22,824 shares in 2004
    
    
    (627,290
    )
    
    
    (627,119
    )Accumulated other comprehensive income
    
    
    (285,462
    )
    
    
    388,723Total shareholders equity
    
    
    36,392,132
    
    
    
    36,207,507Total liabilities and shareholders equity
    
    $
    319,411,516
    
    
    $
    317,340,343
  3.




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Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Interest incomeLoans, including fees
    
    $
    3,730,451
    
    
    $
    3,017,681
    
    
    $
    10,558,039
    
    
    $
    8,968,176Taxable securities
    
    
    534,281
    
    
    
    383,818
    
    
    
    1,571,472
    
    
    
    1,028,665Non-taxable securities
    
    
    160,315
    
    
    
    363,553
    
    
    
    486,913
    
    
    
    1,176,470Other
    
    
    46,720
    
    
    
    7,110
    
    
    
    48,287
    
    
    
    10,318Total interest income
    
    
    4,471,767
    
    
    
    3,743,434
    
    
    
    12,664,711
    
    
    
    11,183,629Interest expenseDeposits
    
    
    1,102,453
    
    
    
    794,678
    
    
    
    2,965,344
    
    
    
    2,418,174Other
    
    
    155,365
    
    
    
    165,770
    
    
    
    528,287
    
    
    
    481,624Total interest expense
    
    
    1,257,818
    
    
    
    960,448
    
    
    
    3,493,631
    
    
    
    2,899,798Net interest income
    
    
    3,213,949
    
    
    
    2,811,714
    
    
    
    9,171,080
    
    
    
    8,283,831Provision for loan losses
    
    
    70,666
    
    
    
    250,000
    
    
    
    282,664
    
    
    
    422,621Net interest income after provision
for loan losses
    
    
    3,143,283
    
    
    
    2,561,714
    
    
    
    8,888,416
    
    
    
    7,861,210Non-interest incomeService charges on deposit
accounts
    
    
    230,162
    
    
    
    232,594
    
    
    
    676,906
    
    
    
    626,078Gain on sale of securities
    
    
    
    
    
    
    559,156
    
    
    
    247,047
    
    
    
    585,016Trust and financial services
    
    
    113,021
    
    
    
    77,553
    
    
    
    351,057
    
    
    
    285,536Other income
    
    
    194,929
    
    
    
    213,088
    
    
    
    597,220
    
    
    
    656,306Total non-interest income
    
    
    538,112
    
    
    
    1,082,391
    
    
    
    1,872,230
    
    
    
    2,152,936Non-interest expensesSalaries and employee benefits
    
    
    1,424,205
    
    
    
    1,377,792
    
    
    
    4,174,377
    
    
    
    3,925,133Occupancy expense
    
    
    168,936
    
    
    
    160,867
    
    
    
    514,583
    
    
    
    481,698Equipment expense
    
    
    135,968
    
    
    
    130,912
    
    
    
    385,067
    
    
    
    390,131State franchise tax
    
    
    106,801
    
    
    
    107,255
    
    
    
    319,379
    
    
    
    312,273Professional and director fees
    
    
    187,126
    
    
    
    189,749
    
    
    
    495,124
    
    
    
    562,141Other expenses
    
    
    685,986
    
    
    
    706,702
    
    
    
    2,131,186
    
    
    
    2,052,001Total non-interest expenses
    
    
    2,709,022
    
    
    
    2,673,277
    
    
    
    8,019,716
    
    
    
    7,723,377Income before income taxes
    
    
    972,373
    
    
    
    970,828
    
    
    
    2,740,930
    
    
    
    2,290,769Federal income tax provision
    
    
    283,000
    
    
    
    224,000
    
    
    
    771,000
    
    
    
    416,000Net income
    
    $
    689,373
    
    
    $
    746,828
    
    
    $
    1,969,930
    
    
    $
    1,874,769Basic and diluted earnings per share
    
    $
    0.26
    
    
    $
    0.28
    
    
    $
    0.74
    
    
    $
    0.71
  4.




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Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Balance at beginning of period
    
    $
    36,469,250
    
    
    $
    34,553,933
    
    
    $
    36,207,507
    
    
    $
    34,717,538Comprehensive income (loss):Net income
    
    
    689,373
    
    
    
    746,828
    
    
    
    1,969,930
    
    
    
    1,874,769Change in net unrealized
gain (loss), net of
reclassification
adjustments and related
income taxes
    
    
    (395,881
    )
    
    
    1,299,450
    
    
    
    (674,185
    )
    
    
    695,434Total comprehensive income
    
    
    293,492
    
    
    
    2,046,278
    
    
    
    1,295,745
    
    
    
    2,570,203Issuance of shares from treasury (0 and 6 shares in 2005, 612 and 612 shares issued in 2004)
    
    
    
    
    
    
    11,375
    
    
    
    121
    
    
    
    11,375Purchase of treasury shares
    
    
    (315
    )
    
    
    
    
    
    
    (355
    )Cash dividends declared
($0.14 and $0.42 per share in
2005, and $0.13 and $0.39
per share in 2004)
    
    
    (370,295
    )
    
    
    (343,846
    )
    
    
    (1,110,886
    )
    
    
    (1,031,376
    )Balance at end of period
    
    $
    36,392,132
    
    
    $
    36,267,740
    
    
    $
    36,392,132
    
    
    $
    36,267,740
  5.




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Nine Months EndedSeptember 30,2005
    
    
    2004Net cash from operating activities
    
    $
    2,469,543
    
    
    $
    1,999,065Cash flows from investing activitiesSecurities available-for-sale:Proceeds from maturities, calls and repayments
    
    
    3,839,926
    
    
    
    17,957,850Proceeds from sales
    
    
    5,098,433
    
    
    
    11,927,185Purchases
    
    
    (5,560,218
    )
    
    
    (31,951,741
    )Securities held to maturity:Proceeds from maturities, calls and repayments
    
    
    
    
    
    
    3,812,000Net change in loans
    
    
    (1,429,163
    )
    
    
    (1,880,998
    )Premises and equipment expenditures, net
    
    
    (542,440
    )
    
    
    (278,746
    )Purchase of restricted stock
    
    
    118,400
    
    
    
    73,200Net cash provided by (used for) investing activities
    
    
    1,524,938
    
    
    
    (341,250
    )Cash flows from financing activitiesNet change in deposits
    
    
    7,794,275
    
    
    
    (9,388,568
    )Net change in securities sold under repurchase agreements
    
    
    (657,205
    )
    
    
    1,015,524Proceeds from FHLB borrowings
    
    
    
    
    
    
    10,000,000Principal reductions on FHLB borrowings, net
    
    
    (5,561,065
    )
    
    
    (639,118
    )Purchase of treasury shares
    
    
    
    
    
    
    (355
    )Cash dividends paid
    
    
    (1,084,436
    )
    
    
    (992,978
    )Net cash provided by (used for) financing activities
    
    
    491,214
    
    
    
    (5,140
    )Net change in cash and cash equivalents
    
    
    4,485,695
    
    
    
    1,652,675Cash and cash equivalents at beginning of period
    
    
    15,644,292
    
    
    
    17,201,381Cash and cash equivalents at end of period
    
    $
    20,129,987
    
    
    $
    18,854,056Supplemental disclosuresInterest paid
    
    $
    3,478,684
    
    
    $
    2,917,830Income taxes paid
    
    
    515,000
    
    
    
    360,000Non-cash investing activity-transfer of loans to OREO
    
    
    625,000Transfer of securities from held-to-maturity to available for sale
    
    
    
    
    
    
    31,681,132
  6.




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NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    
 NOTE 2  SECURITIES
  September 30, 2005
 Gross
    
    
    GrossAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    Faircost
    
    
    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    99,924
    
    
    
    
    
    
    $
    1,111
    
    
    $
    98,813Obligations of U.S.
government
corporations and agencies
    
    
    36,991,627
    
    
    $
    808
    
    
    
    518,833
    
    
    
    36,473,602Obligations of states and
political subdivisions
    
    
    13,614,432
    
    
    
    347,148
    
    
    
    1,826
    
    
    
    13,959,754Mortgage-backed securities
    
    
    18,703,499
    
    
    
    7,442
    
    
    
    258,190
    
    
    
    18,452,751Total Debt Securities
    
    
    69,409,482
    
    
    
    355,398
    
    
    
    258,190
    
    
    
    68,984,920Equity Securities
    
    
    262,348
    
    
    
    
    
    
    
    7,957
    
    
    
    254,391Total available-for-sale
    
    $
    69,671,830
    
    
    $
    355,398
    
    
    $
    787,917
    
    
    $
    69,239,311
 7.




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NOTE 2  SECURITIES (continued)
 December 31, 2004
 Gross
    
    
    GrossAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    Faircost
    
    
    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    101,551
    
    
    $
    32,277
    
    
    
    
    
    
    $
    133,828Obligations of U.S.
government corporations
and agencies
    
    
    39,458,087
    
    
    
    38,527
    
    
    $
    282,074
    
    
    
    39,214,540Mortgage-backed securities
    
    
    16,291,492
    
    
    
    9,347
    
    
    
    72,876
    
    
    
    16,227,963Obligations of states and
political
subdivisions
    
    
    16,997,965
    
    
    
    863,774
    
    
    
    
    
    
    
    17,861,739Total available-for-sale
    
    $
    72,849,095
    
    
    $
    943,925
    
    
    $
    354,950
    
    
    $
    73,438,070
 NOTE 3  RECENT ACCOUNTING PRONOUNCEMENTS
 Share-Based Payment Accounting for Stock-Based Compensation Accounting for Stock Issued to Employees
  Share-Based
Payment
 8.




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NOTE 3  RECENT ACCOUNTING PRONOUNCEMENTS (continued)
  Exchanges of
Nonmonetary Assets  An Amendment of APB Opinion No. 29 Accounting for Nonmonetary Transactions
 Accounting
Changes and Errors Corrections, a replacement of APB Opinion No. 20 and FAS No. 3
 9.




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ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  FORWARD  LOOKING STATEMENTS
   FINANCIAL CONDITION
  10.




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11.




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RESULTS OF OPERATIONS
 Three months ended September 30, 2005 and 2004
      Nine months ended September 30, 2005 and 2004
  12.




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13.




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14.




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September 30, 2005Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    $14,819
    
    $1,420
    
    10.6%+100
    
    14,040
    

641
    
    4.80
    
    13,399
    

0
    
    0.0-100
    
    12,821
    

(578)
    
    (4.3)-200
    
    12,080
    

(1,319)
    
    (9.8)
 December 31, 2004Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    $13,598
    
    $1,455
    
    12.0%+100
    
    12,812
    

669
    
    4.90
    
    12,143
    

0
    
    0.0-100
    
    11,526
    

(617)
    
    (5.1)-200
    
    10,762
    
    (1,381)
    
    (11.4)
 15.




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16.




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Item 1   Legal Proceedings:
 There are no matters required to be reported under this item.
 
 Item 2   Unregistered Sales of Equity Securities and Use of Proceeds:
  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 PlanJuly 1, 2005 to
July 31, 2005
    
    
    4.00
    
    
    $
    21.05
    
    
    
    4.00
    
    
    
    264,492August 1, 2005 to
August 31, 2005
    
    
    8.51
    
    
    
    21.53
    
    
    
    8.51
    
    
    
    264,483September 1, 2005
to September 30,
2005
    
    None
    
    None
    
    None
    
    
    264,483
  
 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.
 17.




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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
 18.




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CSB BANCORP, INC.
(Registrant)Date: November 12, 2005
    /s/ John J. LimbertJohn  J. LimbertPresident
Chief Executive OfficerDate: November 12, 2005
    /s/ Paula J. MeilerPaula J. MeilerSenior Vice President
Chief Financial Officer 19.




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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
 20.