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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 1934For the quarterly period ended: June 30, 2005ORo
    
    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)
  
  (Registrants telephone number)
  þ o
  o þ
  Common stock, $6.25 par value
    
    Outstanding at July 30, 20052,644,966 common shares




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PagePart I  Financial InformationITEM 1 - FINANCIAL STATEMENTSConsolidated Balance Sheets
    
    
    3Consolidated Statements of Income
    
    
    4Consolidated Statements of Changes in Shareholders Equity
    
    
    5Condensed Consolidated Statements of Cash Flows
    
    
    6Notes to 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
    
    
    13ITEM 4  CONTROLS AND PROCEDURES
    
    
    13Part II  Other InformationITEM 1  Legal Proceedings
    
    
    142  Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    143  Defaults upon Senior Securities
    
    
    144  Submission of Matters to a Vote of Security Holders
    
    
    145  Other Information
    
    
    146  Exhibits
    
    
    15Signatures
    
    
    16EX-11 Statement Regarding Computation of Per Share EarningsEX-31.1 Rule 13A-14(A)/15D-14(A) CEO CertificationEX-31.2 Rule 13A-14(A)/15D-14(A) CFO CertificationEX-32.1 Section 1350 CEO's CertificationEX-32.2 Section 1350 CFO's Certification




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June 30,
    
    December 31,2005
    
    2004ASSETSCash and due from banks
    
    $
    9,761,755
    
    
    $
    12,501,954Interest-bearing deposits with other banks
    
    
    97,841
    
    
    
    142,338Federal funds sold
    
    
    
    
    
    
    3,000,000Total cash and cash equivalents
    
    
    9,859,596
    
    
    
    15,644,292Securities available-for-sale, at fair value
    
    
    66,345,093
    
    
    
    73,438,070Restricted stock, at cost
    
    
    2,876,800
    
    
    
    2,790,400Total securities
    
    
    69,221,893
    
    
    
    76,228,470Loans
    
    
    223,442,275
    
    
    
    218,084,479Less allowance for loan loans
    
    
    2,377,067
    
    
    
    2,574,945Net loans
    
    
    221,065,208
    
    
    
    215,509,534Premises and equipment, net
    
    
    8,351,890
    
    
    
    8,243,997Accrued interest receivable and other assets
    
    
    2,672,628
    
    
    
    1,714,050Total assets
    
    $
    311,171,215
    
    
    $
    317,340,343LIABILITIESDepositsNoninterest-bearing
    
    $
    35,252,046
    
    
    $
    41,733,596Interest-bearing
    
    
    210,142,309
    
    
    
    206,217,123Total deposits
    
    
    245,394,355
    
    
    
    247,950,719Securities sold under repurchase agreements
    
    
    12,366,775
    
    
    
    13,316,473Federal Home Loan Bank borrowings
    
    
    13,318,622
    
    
    
    18,745,236Federal funds purchased
    
    

    2,300,000Accrued interest payable and other liabilities
    
    
    1,322,213
    
    
    
    1,120,408Total liabilities
    
    
    274,701,965
    
    
    
    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
    
    
    13,898,224
    
    
    
    13,358,321Treasury stock at cost: 22,820 shares in 2005 and
22,824 shares in 2004
    
    
    (626,975
    )
    
    
    (627,119
    )Accumulated other comprehensive income
    
    
    110,419
    
    
    
    388,723Total shareholders equity
    
    
    36,469,250
    
    
    
    36,207,507Total liabilities and shareholders equity
    
    $
    311,171,215
    
    
    $
    317,340,343
  3.




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Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2005
    
    2004
    
    2005
    
    2004Interest incomeLoans, including fees
    
    $
    3,542,196
    
    
    $
    2,957,549
    
    
    $
    6,827,588
    
    
    $
    5,950,495Taxable securities
    
    
    517,862
    
    
    
    373,376
    
    
    
    1,037,191
    
    
    
    644,847Non-taxable securities
    
    
    157,810
    
    
    
    412,299
    
    
    
    326,598
    
    
    
    812,917Other
    
    
    897
    
    
    
    210
    
    
    
    1,567
    
    
    
    3,208Total interest income
    
    
    4,218,765
    
    
    
    3,743,434
    
    
    
    8,192,944
    
    
    
    7,411,467Interest expenseDeposits
    
    
    993,894
    
    
    
    788,666
    
    
    
    1,862,891
    
    
    
    1,623,496Other
    
    
    196,444
    
    
    
    178,436
    
    
    
    372,922
    
    
    
    315,854Total interest expense
    
    
    1,190,338
    
    
    
    967,102
    
    
    
    2,235,813
    
    
    
    1,939,350Net interest income
    
    
    3,028,427
    
    
    
    2,776,332
    
    
    
    5,957,131
    
    
    
    5,472,117Provision for loan losses
    
    
    105,999
    
    
    
    78,621
    
    
    
    211,998
    
    
    
    172,621Net interest income after provision
for loan losses
    
    
    2,922,428
    
    
    
    2,697,711
    
    
    
    5,745,133
    
    
    
    5,299,496Non-interest incomeService charges on deposit
accounts
    
    
    234,186
    
    
    
    211,069
    
    
    
    446,741
    
    
    
    393,484Gain on sale of securities
    
    
    
    
    
    
    
    
    
    
    247,047
    
    
    
    25,860Trust and financial services
    
    
    120,885
    
    
    
    114,341
    
    
    
    238,036
    
    
    
    207,983Other income
    
    
    198,790
    
    
    
    246,101
    
    
    
    402,294
    
    
    
    443,218Total non-interest income
    
    
    553,861
    
    
    
    571,511
    
    
    
    1,334,118
    
    
    
    1,070,545Non-interest expensesSalaries and employee benefits
    
    
    1,347,708
    
    
    
    1,288,202
    
    
    
    2,750,172
    
    
    
    2,547,341Occupancy expense
    
    
    186,869
    
    
    
    158,653
    
    
    
    345,647
    
    
    
    320,831Equipment expense
    
    
    125,611
    
    
    
    133,579
    
    
    
    249,099
    
    
    
    259,219State franchise tax
    
    
    107,655
    
    
    
    103,162
    
    
    
    212,578
    
    
    
    205,018Professional and director fees
    
    
    151,523
    
    
    
    186,061
    
    
    
    307,998
    
    
    
    372,392Other expenses
    
    
    714,179
    
    
    
    666,075
    
    
    
    1,445,200
    
    
    
    1,345,299Total non-interest expenses
    
    
    2,633,545
    
    
    
    2,535,732
    
    
    
    5,310,694
    
    
    
    5,050,100Income before income taxes
    
    
    842,744
    
    
    
    733,490
    
    
    
    1,768,557
    
    
    
    1,319,941Federal income tax provision
    
    
    229,000
    
    
    
    127,000
    
    
    
    488,000
    
    
    
    192,000Net income
    
    $
    613,744
    
    
    $
    606,490
    
    
    $
    1,280,557
    
    
    $
    1,127,941Basic and diluted earnings
per share
    
    $
    0.23
    
    
    $
    0.23
    
    
    $
    0.48
    
    
    $
    0.43
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Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2005
    
    2004
    
    2005
    
    2004Balance at beginning of period
    
    $
    35,769,494
    
    
    $
    34,947,408
    
    
    $
    36,207,507
    
    
    $
    34,717,538Comprehensive income (loss):Net income
    
    
    613,744
    
    
    
    606,490
    
    
    
    1,280,557
    
    
    
    1,127,941Change in net unrealized
gain (loss), net of reclassification
adjustments and related
income taxes
    
    
    456,348
    
    
    
    (656,201
    )
    
    
    (278,304
    )
    
    
    (604,016
    )Total comprehensive income (loss)
    
    
    1,070,092
    
    
    
    (49,711
    )
    
    
    1,002,253
    
    
    
    523,925Issuance of 6 shares from treasury
    
    
    
    
    
    
    
    
    
    
    121Purchase of 2 treasury shares
    
    
    (40
    )
    
    
    
    
    
    
    (40
    )Cash dividends declared
$(0.14 and $0.28 per share in
2005, and $0.13 and $0.26
per share in 2004)
    
    
    (370,296
    )
    
    
    (343,764
    )
    
    
    (740,591
    )
    
    
    (687,530
    )Balance at end of period
    
    $
    36,469,250
    
    
    $
    34,553,933
    
    
    $
    36,469,250
    
    
    $
    34,553,933
  5.




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Six Months EndedJune 30,2005
    
    2004Net cash from operating activities
    
    $
    1,518,388
    
    
    $
    921,089Cash flows from investing activitiesSecurities available-for-sale:Proceeds from maturities, calls and repayments
    
    
    2,914,280
    
    
    
    11,880,280Proceeds from sales
    
    
    5,098,433
    
    
    
    666,696Purchases
    
    
    (1,128,596
    )
    
    
    (26,958,621
    )Securities held to maturity:Proceeds from maturities, calls and repayments
    
    
    
    
    
    
    3,697,000Net change in loans
    
    
    (6,350,727
    )
    
    
    (8,529,595
    )Premises and equipment expenditures, net
    
    
    (489,617
    )
    
    
    (273,855
    )Net cash from investing activities
    
    
    43,773
    
    
    
    (19,518,095
    )Cash flows from financing activitiesNet change in deposits
    
    
    (2,556,364
    )
    
    
    (9,774,422
    )Net change in securities sold under repurchase agreements
    
    
    (949,698
    )
    
    
    (1,545,389
    )Net change in federal funds purchased
    
    
    2,300,000
    
    
    
    13,300,000Proceeds from FHLB borrowings
    
    
    
    
    
    
    10,000,000Principal reductions on FHLB borrowings, net
    
    
    (5,426,614
    )
    
    
    (489,253
    )Purchase of treasury shares
    
    
    (40
    )
    
    
    Cash dividends paid
    
    
    (714,141
    )
    
    
    (661,088
    )Net cash from financing activities
    
    
    (7,346,857
    )
    
    
    (13,920,626
    )Net change in cash and cash equivalents
    
    
    (5,784,696
    )
    
    
    (4,676,380
    )Cash and cash equivalents at beginning of period
    
    
    15,644,292
    
    
    
    17,201,381Cash and cash equivalents at end of period
    
    $
    9,859,596
    
    
    $
    12,525,001Supplemental disclosuresInterest paid
    
    $
    2,205,326
    
    
    $
    1,962,169Income taxes paid
    
    
    240,000
    
    
    
    280,000Non-cash investing activity-transfer of loans to OREO
    
    
    625,000
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NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    NOTE 2  SECURITIES
  June 30, 2005
 Gross
    
    GrossAmortized
    
    unrealized
    
    unrealized
    
    FairAvailable-for-sale:
    
    cost
    
    gains
    
    losses
    
    valueU.S. Treasury security
    
    $
    99,911
    
    
    
    
    
    
    $
    567
    
    
    $
    99,344Obligations of U.S.
government
corporations and agencies
    
    
    36,991,793
    
    
    $
    7,433
    
    
    
    216,876
    
    
    
    36,782,350Obligations of states and
political subdivisions
    
    
    13,459,977
    
    
    
    445,324
    
    
    
    3,220
    
    
    
    13,902,081Mortgage-backed securities
    
    
    15,622,405
    
    
    
    16,663
    
    
    
    81,455
    
    
    
    15,557,613Equity securities
    
    
    3,705
    
    
    
    
    
    
    
    
    
    
    
    3,705Total available-for-sale
    
    
    66,177,791
    
    
    
    469,420
    
    
    
    302,118
    
    
    
    66,345,093Restricted stock
    
    
    2,876,800
    
    
    
    
    
    
    
    
    
    
    
    2,876,800Total securities
    
    $
    69,054,591
    
    
    $
    469,420
    
    
    $
    302,118
    
    
    $
    69,221,893
 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
    
    
    
    73,438,070Restricted stock
    
    
    2,790,400
    
    
    
    
    
    
    
    
    
    
    
    2,790,400Total securities
    
    $
    75,639,495
    
    
    $
    943,925
    
    
    $
    354,950
    
    
    $
    76,228,470
 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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10.




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RESULTS
OF OPERATIONS

Three months ended June 30, 2005 and 2004
      Six months ended June 30, 2005 and 2004
   11.




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12.




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13.




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Nominee
    
    For
    
    WithheldRobert K. Baker
    
    
    2,001,319
    
    
    
    32,178J. Thomas Lang
    
    
    1,745,914
    
    
    
    287,583John J. Limbert
    
    
    2,022,299
    
    
    
    11,198
  
  
 
   14.




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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
 15.




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CSB BANCORP, INC.
(Registrant)Date: August 10, 2005
    /s/ John J. LimbertJohn  J. LimbertPresident
Chief Executive OfficerDate: August 10, 2005
    /s/ Paula J. MeilerPaula J. MeilerSenior Vice President
Chief Financial Officer 16.




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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
 17.