##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-K
 (Mark one)
 þ
    
    ANNUAL REPORT PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2005
 OR
 o
    
    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from to
 Commission File No. 0-21714
 CSB BANCORP, INC.
  Ohio
    
    34-1687530(State or other jurisdiction of incorporation or organization)
    
    (I.R.S. Employer Identification No.)
 91 North Clay Street, Millersburg, Ohio
    
    44654(Address of principal executive offices)
    
    (Zip code)
   Common Shares, $6.25 par value
 o þ
 o þ
 þ o
 þ
  o o þ
 o þ




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TABLE OF CONTENTS  PART IITEM 1  BUSINESSItem 1A. Risk FactorsItem 1B. Unresolved Staff CommentsITEM 2  PROPERTIESITEM 3  LEGAL PROCEEDINGSITEM 4  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSPART IIITEM 5  MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED STOCKHOLDER MATTERSITEM 6  SELECTED FINANCIAL DATAITEM 7  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 7A  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 8  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATAITEM 9  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSUREITEM 9A  CONTROLS AND PROCEDURESITEM 9B  OTHER INFORMATIONPART IIIITEM 10  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANTITEM 11  EXECUTIVE COMPENSATIONITEM 12  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERSITEM 13  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONSITEM 14  PRINCIPAL ACCOUNTANT FEES AND SERVICESPART IVITEM 15  EXHIBITS AND FINANCIAL STATEMENTS SCHEDULESSIGNATURESINDEX TO EXHIBITSEX-13 AnnualEX-21 Subsidiary of CSB Bancorp, Inc.EX-23.1 Consent of S.R. Snodgrass A.C.EX-23.2 Consent of Clifton Gunderson LLPEX-31.1 Section 302 Certification of CEOEX-31.2 Section 302 Certification of CFOEX-32.1 Section 906 Certification of CEOEX-32.2 Section 906 Certification of CFO    Table of Contents   
 
   www.csb1.com
 www.sec.gov
 
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
    
    Changes in interest rates 
    
    New developments in the banking industry 
    
    Regulatory actions 
    
    Credit risk 
    
    Economy
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(In thousands of dollars)
    
    2005
    
    
    2004
    
    
    2003Securities available-for-sale, at fair valueU.S. Treasury securities
    
    $
    99
    
    
    $
    134U.S. Government corporations and agencies
    
    
    42,230
    
    
    
    39,214
    
    
    $
    24,084Mortgage-backed securities
    
    
    27,006
    
    
    
    16,228
    
    
    
    4,260Obligations of states and political subdivisions
    
    
    8,633
    
    
    
    17,862
    
    
    
    646Equity securities
    
    
    305Total
    
    $
    78,273
    
    
    $
    73,438
    
    
    $
    28,990Securities held-to-maturity, at amortized costU.S. Treasury securities
    
    
    
    
    
    
    
    
    
    $
    102U.S. Government corporations and agencies
    
    
    
    
    
    
    
    
    
    
    1,000Obligations of states and political subdivisions
    
    
    
    
    
    
    
    
    
    
    34,990Total
    
    
    
    
    
    
    
    
    
    $
    36,092
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(In thousands of dollars)MaturingAfter One Year
    
    
    After Five YearsOne Year or Less
    
    

Through
Five
 Years
    
    

Through
Ten
 Years
    
    
    After Ten YearsAmount
    
    
    Yield
    
    
    Amount
    
    
    Yield
    
    
    Amount
    
    
    Yield
    
    
    Amount
    
    
    YieldAvailable for sale:U.S. Treasury
    
    
    
    
    
    
    
    
    
    $
    100
    
    
    
    3.18
    %U.S. Government
corporations and
agencies
    
    $
    5,500
    
    
    
    2.85
    %
    
    
    35,498
    
    
    
    4.20
    
    
    $
    1,993
    
    
    
    4.07
    %Mortgage-backed
    
    
    
    
    
    
    
    
    
    
    1,022
    
    
    
    5.87
    
    
    
    4,634
    
    
    
    4.28
    
    
    $
    21,712
    
    
    
    5.06
    %Obligations of
states and
political
subdivisions
    
    
    2,503
    
    
    
    7.44
    
    
    
    5,616
    
    
    
    7.29
    
    
    
    274
    
    
    
    5.31Total
    
    $
    8,003
    
    
    
    4.29
    %
    
    $
    42,236
    
    
    
    4.65
    %
    
    $
    6,901
    
    
    
    4.26
    %
    
    $
    21,712
    
    
    
    5.06
    %
     (In thousands of dollars)
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001Commercial
    
    $
    69,922
    
    
    $
    77,231
    
    
    $
    73,559
    
    
    $
    74,907
    
    
    $
    68,180Commercial real estate
    
    
    52,661
    
    
    
    43,744
    
    
    
    49,160
    
    
    
    41,665
    
    
    
    31,170Residential real estate
    
    
    78,722
    
    
    
    78,862
    
    
    
    72,944
    
    
    
    65,653
    
    
    
    55,228Construction
    
    
    2,120
    
    
    
    8,034
    
    
    
    5,503
    
    
    
    5,453
    
    
    
    1,255Installment and credit card
    
    
    11,539
    
    
    
    10,273
    
    
    
    12,251
    
    
    
    12,382
    
    
    
    13,518Total loans
    
    $
    214,964
    
    
    $
    218,144
    
    
    $
    213,417
    
    
    $
    200,060
    
    
    $
    169,351
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MaturingOne Year
    
    
    One Through(In thousands of dollars)
    
    or Less
    
    
    Five Years
    
    
    After Five Years
    
    
    TotalCommercial
    
    $
    28,736
    
    
    $
    24,248
    
    
    $
    16,938
    
    
    $
    69,922Commercial real estate
    
    
    6,495
    
    
    
    8,609
    
    
    
    37,557
    
    
    
    52,661Construction
    
    
    0
    
    
    
    919
    
    
    
    1,201
    
    
    
    2,120Total
    
    $
    35,231
    
    
    $
    33,776
    
    
    $
    55,696
    
    
    $
    124,703
  (In thousands of dollars)
    
    Fixed Rate
    
    
    Variable RateTotal commercial, commercial real estate and construction
loans due after one year
    
    $
    9,382
    
    
    $
    80,090
   (In thousands of dollars)
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001(a) Loans accounted for
on a nonaccrual basis
    
    $
    633
    
    
    $
    1,552
    
    
    $
    1,170
    
    
    $
    1,721
    
    
    $
    3,159(b) Accruing loans that
are contractually past
due 90 days or more as
to interest or principal
payments
    
    
    168
    
    
    
    119
    
    
    
    175
    
    
    
    
    
    
    
    119Totals
    
    $
    801
    
    
    $
    1,671
    
    
    $
    1,345
    
    
    $
    1,721
    
    
    $
    3,278
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(In thousands of dollars)
    
    2005
    
    
    2004
    
    
    2003Balance of impaired loans at December 31
    
    $
    565
    
    
    $
    1,198
    
    
    $
    897Less portion for which no allowance for loan loss is allocated
    
    
    62Portion of impaired loan balance for which an allowance for
loan losses is allocated
    
    
    503
    
    
    
    1,198
    
    
    
    897Portion of allowance for loan losses allocated to the
impaired loan balance at December 31
    
    
    174
    
    
    
    388
    
    
    
    251
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(In thousands of dollars)
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001LOANSAverage loans outstanding
during period
    
    $
    220,655
    
    
    $
    216,864
    
    
    $
    209,231
    
    
    $
    181,147
    
    
    $
    186,665ALLOWANCE FOR LOAN LOSSESBalance at beginning of period
    
    $
    2,575
    
    
    $
    2,459
    
    
    $
    2,701
    
    
    $
    4,019
    
    
    $
    7,460Loans charged off:Commercial
    
    
    (16
    )
    
    
    (95
    )
    
    
    (56
    )
    
    
    (429
    )
    
    
    (1,585
    )Commercial real estate
    
    
    (442
    )
    
    
    0
    
    
    
    (97
    )
    
    
    (342
    )
    
    
    (1,441
    )Residential real estate
    
    
    (16
    )
    
    
    (275
    )
    
    
    (70
    )
    
    
    (154
    )
    
    
    (151
    )Installment and credit card
    
    
    (102
    )
    
    
    (64
    )
    
    
    (115
    )
    
    
    (240
    )
    
    
    (571
    )Total loans charged off
    
    
    (576
    )
    
    
    (434
    )
    
    
    (338
    )
    
    
    (1,165
    )
    
    
    (3,748
    )Recoveries of loans
previously charged off:Commercial
    
    
    63
    
    
    
    61
    
    
    
    7
    
    
    
    244
    
    
    
    126Commercial real estate
    
    
    2
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0Residential real estate
    
    
    33
    
    
    
    23
    
    
    
    70
    
    
    
    36
    
    
    
    42Installment
    
    
    67
    
    
    
    43
    
    
    
    70
    
    
    
    153
    
    
    
    104Total loan recoveries
    
    
    163
    
    
    
    127
    
    
    
    147
    
    
    
    433
    
    
    
    272Net loans charged off
    
    
    (413
    )
    
    
    (307
    )
    
    
    (191
    )
    
    
    (732
    )
    
    
    (3,476
    )Provision charged to
operating expense
    
    
    283
    
    
    
    423
    
    
    
    (51
    )
    
    
    (586
    )
    
    
    35Balance at end of period
    
    $
    2,445
    
    
    $
    2,575
    
    
    $
    2,459
    
    
    $
    2,701
    
    
    $
    4,019Ratio of net charge-offs to
average loans outstanding for
period
    
    
    .19
    %
    
    
    .14
    %
    
    
    .09
    %
    
    
    .40
    %
    
    
    1.86
    %
  
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Allocation of the Allowance for Loan Losses(In thousands of dollars)Percentage of Loans
    
    
    
    
    
    
    Percentage of Loans
    
    
    
    
    
    
    Percentage of Loans
    
    
    
    
    
    
    Percentage of Loans
    
    
    
    
    
    
    Percentage of Loansin Each Category to
    
    
    
    
    
    
    in Each Category to
    
    
    
    
    
    
    in Each Category to
    
    
    
    
    
    
    in Each Category to
    
    
    
    
    
    
    in Each Category toAllowance Amount
    
    
    Total Loans
    
    
    Allowance Amount
    
    
    Total Loans
    
    
    Allowance Amount
    
    
    Total Loans
    
    
    Allowance Amount
    
    
    Total Loans
    
    
    Allowance Amount
    
    
    Total LoansDecember 31, 2005
    
    
    
    December 31, 2004
    
    
    
    December 31, 2003
    
    
    
    December 31, 2002
    
    
    
    December 31, 2001Commercial
    
    
    $   936
    
    
    
    32.52
    %
    
    
    $1,256
    
    
    
    35.41
    %
    
    
    $   741
    
    
    
    34.47
    %
    
    
    $   809
    
    
    
    37.44
    %
    
    
    $2,011
    
    
    
    40.26
    %Commercial real
estate
    
    
    763
    
    
    
    24.50
    
    
    
    765
    
    
    
    20.05
    
    
    
    759
    
    
    
    23.03
    
    
    
    908
    
    
    
    20.82
    
    
    
    1,132
    
    
    
    18.41Residential real
estate
    
    
    278
    
    
    
    36.62
    
    
    
    261
    
    
    
    36.15
    
    
    
    768
    
    
    
    34.18
    
    
    
    491
    
    
    
    32.82
    
    
    
    370
    
    
    
    32.61Construction
    
    
    4
    
    
    
    .99
    
    
    
    18
    
    
    
    3.68
    
    
    
    30
    
    
    
    2.58
    
    
    
    35
    
    
    
    2.73
    
    
    
    0
    
    
    
    .74Installment and
credit card
    
    
    36
    
    
    
    5.37
    
    
    
    22
    
    
    
    4.71
    
    
    
    70
    
    
    
    5.74
    
    
    
    231
    
    
    
    6.19
    
    
    
    401
    
    
    
    7.98Unallocated
    
    
    428
    
    
    
    
    
    
    
    253
    
    
    
    
    
    
    
    91
    
    
    
    
    
    
    
    227
    
    
    
    
    
    
    
    105Total
    
    
    $2,445
    
    
    
    100.00
    %
    
    
    $2,575
    
    
    
    100.00
    %
    
    
    $2,459
    
    
    
    100.00
    %
    
    
    $2,701
    
    
    
    100.00
    %
    
    
    $4,019
    
    
    
    100.00
    %
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Average
    
    
    AverageAmounts Outstanding
    
    
    Rate PaidYear ended December 31
    
    
    Year ended December 31(In thousands of dollars)
    
    2005
    
    
    2004
    
    
    2003
    
    
    2005
    
    
    2004
    
    
    2003Noninterest-bearing demand
    
    $
    37,855
    
    
    $
    34,310
    
    
    $
    30,551
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/AInterest-bearing demand
deposits
    
    
    49,021
    
    
    
    48,042
    
    
    
    46,687
    
    
    
    .39
    %
    
    
    .22
    %
    
    
    .41
    %Savings deposits
    
    
    44,759
    
    
    
    42,904
    
    
    
    37,989
    
    
    
    .80
    
    
    
    .44
    
    
    
    .53Time deposits
    
    
    117,372
    
    
    
    116,418
    
    
    
    121,298
    
    
    
    3.05
    
    
    
    2.53
    
    
    
    2.85Total deposits
    
    $
    249,007
    
    
    $
    241,674
    
    
    $
    236,525
  6.
    
    The following is a schedule of maturities of time certificates of deposit in amounts of
$100,000 or more as of December 31, 2005:
 (In thousands of dollars)Three months or less
    
    $
    6,398Over three through six months
    
    
    7,041Over six through twelve months
    
    
    5,378Over twelve months
    
    
    10,806Total
    
    $
    29,623
  2005
    
    
    2004
    
    
    2003Return on average assets
    
    
    0.91
    %
    
    
    0.81
    %
    
    
    0.68
    %Return on average shareholders equity
    
    
    7.92
    
    
    
    7.15
    
    
    
    6.00Dividend payout ratio
    
    
    51.47
    
    
    
    54.44
    
    
    
    61.48Average shareholders equity to average assets
    
    
    11.46
    
    
    
    11.31
    
    
    
    11.35
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(In thousands of dollars)
    
    2005
    
    
    2004
    
    
    2003Securities sold under agreements to repurchase and
federal funds purchased at period-end
    
    $
    21,418
    
    
    $
    18,316
    
    
    $
    11,859Weighted average interest rate at period-end
    
    
    1.54
    %
    
    
    .88
    %
    
    
    .56
    %Maximum outstanding at any month-end during the year
    
    
    29,467
    
    
    
    31,704
    
    
    
    13,738Average amount outstanding
    
    
    20,243
    
    
    
    21,360
    
    
    
    12,885Weighted average rates during the year
    
    
    1.64
    %
    
    
    .85
    %
    
    
    .61
    %
 
              
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Number of sharesremaining availableNumber of shares of
    
    
    
    
    
    for future issuancecommon stock to be
    
    
    
    
    
    under equityissued upon
    
    Weighted-average
    
    compensation plansexercise of
    
    exercise price of
    
    (excludingoutstanding
    
    outstanding
    
    securitiesoptions, warrants
    
    options, warrants,
    
    reflected in columnand rights
    
    and rights
    
    (a))(a)
    
    (b)
    
    (c)Equity compensation
plans approved by
stockholders
    
    
    11,970
    
    
    $
    16.54
    
    
    
    188,030Equity compensation
plans not approved
by stockholders
    
    
    10,000
    
    
    $
    17.75
    
    
    
    0Total
    
    
    21,970
    
    
    $
    17.09
    
    
    
    188,030
 
   
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Exhibit Number
    
    Description of Document3.1
    
    Amended Articles of Incorporation of CSB Bancorp, Inc.
(incorporated by reference to Registrants 1994 Form
10-KSB)3.1.1
    
    Amended form of Article Fourth of Amended Articles of
Incorporation, as effective April 9, 1998 (incorporated by
reference to Registrants 1998 Form 10-K)3.2
    
    Code of Regulations of CSB Bancorp, Inc. (incorporated by
reference to Registrants Form 10-SB)4
    
    Form of Certificate of Common Shares of CSB Bancorp, Inc.
(incorporated by reference to Registrants Form 10-SB)10.1
    
    Leases for the Clinton Commons, Berlin and Charm Branch
Offices of The Commercial and Savings Bank (incorporated by
reference to Registrants Form 10-SB)10.2
    
    Third Amendment to Employment Agreement between CSB
Bancorp, Inc. and C. James Bess (incorporated by reference
to Registrants Form 10-Q filed May 13, 2003)10.3
    
    Employment Agreement between CSB Bancorp, Inc. and John J.
Limbert (incorporated by reference to Registrants Form 8-K
filed May 22, 2003)13
    
    CSB Bancorp, Inc. 2005 Annual Report to Shareholders21
    
    Subsidiary of CSB Bancorp, Inc.23.1
    
    Consent of S.R. Snodgrass A.C.23.2
    
    Consent of Clifton Gunderson LLP31.1
    
    Section 302 Certification of Chief Executive Officer31.2
    
    Section 302 Certification of Chief Financial Officer32.1
    
    Section 906 Certification of Chief Executive Officer32.2
    
    Section 906 Certification of Chief Financial Officer
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CSB BANCORP, INC./s/ Rick L. GintherDate: March 24, 2006
    
    Rick L. Ginther, Interim Chief Executive Officer
  Signatures
    
    Title/s/ Rick L. Ginther

Rick L. Ginther
    
    Interim Chief Executive Officer
(Principal Executive Officer)/s/ Paula J. Meiler

Paula J. Meiler
    
    Senior Vice President and Chief Financial Officer/s/ Pamela S. Basinger

Pamela S. Basinger
    
    Vice President and Principal Accounting Officer/s/ Ronald E. Holtman

Ronald E. Holtman
    
    Director/s/ Jeffery A. Robb

Jeffery A. Robb, Sr.
    
    Director/s/ Robert K. Baker

Robert K. Baker
    
    Director/s/ Daniel J. Miller

Daniel J. Miller
    
    Director/s/ John R. Waltman

John R. Waltman
    
    Director
 18




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Signatures
    
    Title/s/ Samuel M. Steimel

Samuel M. Steimel
    
    Director/s/ Eddie L. Steiner

Eddie L. Steiner
    
    Director/s/ J. Thomas Lang

J. Thomas Lang
    
    Director
 
  Exhibit Number
    
    Description of Document
    
    Sequential Page3.1
    
    Amended Articles of Incorporation of CSB Bancorp,
Inc. (incorporated by reference to Registrants
1994 Form 10-KSB)
    
    N/A3.1.1
    
    Amended form of Article Fourth of Amended Articles
of Incorporation, as effective April 9, 1998
(incorporated by reference to Registrants 1998
Form 10-K).
    
    N/A3.2
    
    Code of Regulations of CSB Bancorp, Inc.
(incorporated by reference to Registrants Form
10-SB).
    
    N/A4
    
    Form of Certificate of Common Shares of CSB
Bancorp, Inc. (incorporated by reference to
Registrants Form 10-SB).
    
    N/A10.1
    
    Leases for the Clinton Commons, Berlin and Charm
Branch Offices of The Commercial and Savings Bank
(incorporated by reference to Registrants Form
10-SB).
    
    N/A10.2
    
    Third Amendment to Employment Agreement between CSB
Bancorp, Inc. and C. James Bess (incorporated by
reference to Registrants Form 10-Q filed May 13,
2003)
    
    N/A10.3
    
    Employment Agreement between CSB Bancorp, Inc. and
John J. Limbert (incorporated by reference to
Registrants Form 8-K filed May 22, 2003)
    
    N/A13
    
    CSB Bancorp, Inc. 2005 Annual Report to Shareholders
    
    N/A21
    
    Subsidiary of CSB Bancorp, Inc.
    
    N/A23.1
    
    Consent of S.R. Snodgrass A.C.
    
    N/A23.2
    
    Consent of Clifton Gunderson LLP
    
    N/A31.1
    
    Section 302 Certification of Chief Executive Officer
    
    N/A31.2
    
    Section 302 Certification of Chief Financial Officer
    
    N/A32.1
    
    Section 906 Certification of Chief Executive Officer
    
    N/A32.2
    
    Section 906 Certification of Chief Financial Officer
    
    N/A
 19