##### 



Exhibit 13




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##### 



CSB
Bancorp, Inc. Report to Shareholders
 T able Contents
 The Importance of Community Banking
    
    
    42005 Financial Highlights
    
    
    5Chairmans Letter to Shareholders
    
    
    62005 Financial Review
    
    
    10Report of Independent Auditors
    
    
    24Consolidated Balance Sheets
    
    
    25Consolidated Statements of Income
    
    
    26Consolidated Statements of Shareholders Equity
    
    
    27Consolidated Statements of Cash Flows
    
    
    28Summary of Significant Accounting Policies
    
    
    30Notes to Consolidated Financial Statements
    
    
    34Officers of The Commercial & Savings Bank
    
    
    48General Information
    
    
    49




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##### 








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##### 



CSB
Bancorp, Inc. Report to Shareholders
 2005 Financial Highlights
 For the Years Ended December 31, 2005 and 2004
 (Dollars in thousands, except per share data)
    
        2005
    
    
        2004
    
    
    % ChangeConsolidated
ResultsNet interest income
    
    $
    12,546
    
    
    $
    11,200
    
    
    
    12
    %Net interest incomefully taxable-equivalent (FTE) basis
    
    
    12,879
    
    
    
    11,939
    
    
    
    8Noninterest income
    
    
    2,580
    
    
    
    2,680
    
    
    
     4Provision for loan losses
    
    
    283
    
    
    
    423
    
    
    
    33Noninterest expense
    
    
    10,803
    
    
    
    10,278
    
    
    
    5Net income
    
    
    2,873
    
    
    
    2,526
    
    
    
    14At Year-endLoans, net
    
    $
    212,574
    
    
    $
    215,510
    
    
    
    1
    %Assets
    
    
    320,989
    
    
    
    317,340
    
    
    
    1Deposits
    
    
    255,403
    
    
    
    247,951
    
    
    
    3Shareholders equity
    
    
    35,170
    
    
    
    36,208
    
    
    
    3Cash dividends declared
    
    
    0.56
    
    
    
    0.52
    
    
    
    8Book value
    
    
    13.64
    
    
    
    13.69
    
    
    
    <1Market price
    
    
    21.00
    
    
    
    20.00
    
    
    
    5Basic earnings per share
    
    
    1.09
    
    
    
    0.96
    
    
    
    14Diluted earnings per share
    
    
    1.09
    
    
    
    0.95
    
    
    
    15Financial PerformanceReturn on average assets
    
    
    0.91
    %
    
    
    0.81
    %Return on average equity
    
    
    7.92
    
    
    
    7.15Net interest margin
    
    
    4.23
    
    
    
    3.83Efficiency ratio
    
    
    69.88
    
    
    
    70.30Capital RatiosRisk-based capital:Tier 1
    
    
    17.06
    %
    
    
    17.19
    %Total
    
    
    18.22
    
    
    
    18.43Leverage
    
    
    11.08
    
    
    
    11.45
 5




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##### 



CSB
Bancorp, Inc. Report to Shareholders
 Chairmans Letter
 Dear Fellow Shareholder:
    
 
 
 
 Shareholder Value
    6




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##### 



CSB
Bancorp, Inc. Report to Shareholders
 Chairmans Letter
   
 Customer Value
     Community Value
    7




---



##### 



CSB
Bancorp, Inc. Report to
 Chairmans Letter
   
 
 
  Employee Value
   
 
 8




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##### 



CSB Bancorp, Inc. Report to Shareholders
 Chairmans Letter
  
 Summary
    
 Robert K. Baker
 9




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##### 



CSB Bancorp, Inc. Report to Shareholders
 2005 Financial Review
 Introduction
    Forward-Looking Statements
  10




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##### 



CSB Bancorp, Inc. Report to Shareholders
 2005 Financial Review
 Selected Financial Data
 2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001(Dollars in thousands, except per share data)Statements of income:Total interest income
    
    $
    17,358
    
    
    $
    15,074
    
    
    $
    15,414
    
    
    $
    16,700
    
    
    $
    21,656Total interest expense
    
    
    4,812
    
    
    
    3,874
    
    
    
    4,631
    
    
    
    6,467
    
    
    
    11,471Net interest income
    
    
    12,546
    
    
    
    11,200
    
    
    
    10,783
    
    
    
    10,233
    
    
    
    10,185Provision (credit) for loan losses
    
    
    283
    
    
    
    423
    
    
    
    (51
    )
    
    
    (587
    )
    
    
    35Net interest income after provision (credit) for loan losses
    
    
    12,263
    
    
    
    10,777
    
    
    
    10,834
    
    
    
    10,820
    
    
    
    10,150Noninterest income
    
    
    2,581
    
    
    
    2,680
    
    
    
    2,155
    
    
    
    2,037
    
    
    
    1,976Noninterest expenses
    
    
    10,803
    
    
    
    10,278
    
    
    
    10,799
    
    
    
    10,999
    
    
    
    11,604Income before income taxes
    
    
    4,041
    
    
    
    3,179
    
    
    
    2,190
    
    
    
    1,858
    
    
    
    522Income tax provision (credit)
    
    
    1,168
    
    
    
    653
    
    
    
    130
    
    
    
    (65
    )
    
    
    (537
    )Net income
    
    $
    2,873
    
    
    $
    2,526
    
    
    $
    2,060
    
    
    $
    1,923
    
    
    $
    1,059Per share of common stock:Basic income per share
    
    $
    1.09
    
    
    $
    0.96
    
    
    $
    0.78
    
    
    $
    0.73
    
    
    $
    0.40Diluted income per share
    
    
    1.09
    
    
    
    0.95
    
    
    
    0.78
    
    
    
    0.73
    
    
    
    0.40Dividends
    
    
    0.56
    
    
    
    0.52
    
    
    
    0.48
    
    
    
    0.30
    
    
    
    0.10Book value
    
    
    13.64
    
    
    
    13.69
    
    
    
    13.13
    
    
    
    12.83
    
    
    
    12.46Average basic common shares outstanding
    
    
    2,638,697
    
    
    
    2,644,582
    
    
    
    2,638,360
    
    
    
    2,630,931
    
    
    
    2,625,241Average diluted common shares outstanding
    
    
    2,642,301
    
    
    
    2,650,948
    
    
    
    2,641,887
    
    
    
    2,634,558
    
    
    
    2,626,014Year-end balances:Loans, net
    
    $
    212,574
    
    
    $
    215,510
    
    
    $
    210,796
    
    
    $
    197,109
    
    
    $
    164,916Securities
    
    
    81,220
    
    
    
    76,228
    
    
    
    67,773
    
    
    
    73,088
    
    
    
    92,607Total assets
    
    
    320,989
    
    
    
    317,340
    
    
    
    306,180
    
    
    
    304,713
    
    
    
    306,345Deposits
    
    
    255,403
    
    
    
    247,951
    
    
    
    248,958
    
    
    
    239,976
    
    
    
    251,430Borrowings
    
    
    29,485
    
    
    
    32,062
    
    
    
    21,372
    
    
    
    29,828
    
    
    
    21,317Shareholders equity
    
    
    35,170
    
    
    
    36,208
    
    
    
    34,718
    
    
    
    33,742
    
    
    
    32,721Average balances:Loans, net
    
    $
    218,187
    
    
    $
    214,330
    
    
    $
    206,685
    
    
    $
    177,592
    
    
    $
    180,157Securities
    
    
    71,866
    
    
    
    73,342
    
    
    
    70,027
    
    
    
    80,176
    
    
    
    90,538Total assets
    
    
    316,612
    
    
    
    312,534
    
    
    
    302,601
    
    
    
    295,399
    
    
    
    314,153Deposits
    
    
    249,007
    
    
    
    241,674
    
    
    
    236,525
    
    
    
    235,080
    
    
    
    260,677Borrowings
    
    
    30,083
    
    
    
    34,540
    
    
    
    30,981
    
    
    
    25,971
    
    
    
    20,532Shareholders equity
    
    
    36,290
    
    
    
    35,332
    
    
    
    34,360
    
    
    
    33,382
    
    
    
    31,921Selected ratios:Net interest margin
    
    
    4.23
    %
    
    
    3.83
    %
    
    
    3.81
    %
    
    
    3.73
    %
    
    
    3.45
    %Return on average total assets
    
    
    0.91
    
    
    
    0.81
    
    
    
    0.68
    
    
    
    0.65
    
    
    
    0.34Return on average shareholders equity
    
    
    7.92
    
    
    
    7.15
    
    
    
    6.00
    
    
    
    5.76
    
    
    
    3.32Average shareholders equity
as a percent of average total assets
    
    
    11.46
    
    
    
    11.31
    
    
    
    11.35
    
    
    
    11.30
    
    
    
    10.16Net loan charge-offs as a percent of average loans
    
    
    0.19
    
    
    
    0.14
    
    
    
    0.09
    
    
    
    0.40
    
    
    
    1.86Allowance for loan losses as a percent of loans at year-end
    
    
    1.14
    
    
    
    1.18
    
    
    
    1.15
    
    
    
    1.35
    
    
    
    2.38Shareholders equity as a percent of total year-end assets
    
    
    10.96
    
    
    
    11.41
    
    
    
    11.34
    
    
    
    11.07
    
    
    
    10.68Dividend payout ratio
    
    
    51.47
    
    
    
    54.44
    
    
    
    61.48
    
    
    
    41.04
    
    
    
    24.78
 11




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##### 



CSB Bancorp, Inc. Report to Shareholders
 2005 Financial Review
 Results Of Operations
 Net Income
   Net Interest Income
       12




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##### 



CSB Bancorp, Inc. Report to Shareholders
 2005 Financial Review
  Average
Balances, Rates and Yields(Dollars
in thousands)2005
    
    
    2004
    
    
    2003Average
    
    
    
    
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    
    
    
    
    AverageBalance(1)
    
    
    Interest
    
    
    Rate(2)
    
    
    Balance(1)
    
    
    Interest
    
    
    Rate(2)
    
    
Balance(1)
    
    
    Interest
    
    
    Rate(2)Interest-earning assetsFederal funds sold
    
    $
    3,848
    
    
    $
    145
    
    
    
    3.77
    %
    
    $
    2,263
    
    
    $
    40
    
    
    
    1.77
    %
    
    $
    3,591
    
    
    $
    35
    
    
    
    0.99
    %Interest-earning deposits
    
    
    36
    
    
    
    1
    
    
    
    1.39
    
    
    
    43
    
    
    
    0
    
    
    
    0.47
    
    
    
    29
    
    
    
    1
    
    
    
    0.52Securities:Taxable
    
    
    57,930
    
    
    
    2,243
    
    
    
    3.87
    
    
    
    44,072
    
    
    
    1,502
    
    
    
    3.41
    
    
    
    30,806
    
    
    
    1,020
    
    
    
    3.31Tax exempt
    
    
    13,936
    
    
    
    625
    
    
    
    4.49
    
    
    
    29,270
    
    
    
    1,409
    
    
    
    4.81
    
    
    
    39,221
    
    
    
    1,905
    
    
    
    4.85Loans(3)
    
    
    220,655
    
    
    
    14,344
    
    
    
    6.50
    
    
    
    216,864
    
    
    
    12,123
    
    
    
    5.59
    
    
    
    209,231
    
    
    
    12,453
    
    
    
    5.95Total interest-earning assets
    
    
    296,405
    
    
    
    17,358
    
    
    
    5.86
    
    
    
    292,512
    
    
    
    15,074
    
    
    
    5.15
    
    
    
    282,878
    
    
    
    15,414
    
    
    
    5.45Noninterest-earning assetsCash and due from banks
    
    
    11,820
    
    
    
    
    
    
    
    
    
    
    
    11,734
    
    
    
    
    
    
    
    
    
    
    
    11,090Bank premises and equipment, net
    
    
    8,323
    
    
    
    
    
    
    
    
    
    
    
    8,413
    
    
    
    
    
    
    
    
    
    
    
    8,847Other assets
    
    
    2,532
    
    
    
    
    
    
    
    
    
    
    
    2,409
    
    
    
    
    
    
    
    
    
    
    
    2,332Allowance for loan losses
    
    
    (2,468
    )
    
    
    
    
    
    
    
    
    
    
    (2,534
    )
    
    
    
    
    
    
    
    
    
    
    (2,546
    )Total assets
    
    $
    316,612
    
    
    
    
    
    
    
    
    
    
    $
    312,534
    
    
    
    
    
    
    
    
    
    
    $
    302,601Interest-bearing liabilitiesDemand deposits
    
    $
    49,021
    
    
    $
    192
    
    
    
    0.39
    %
    
    $
    48,042
    
    
    $
    105
    
    
    
    0.22
    %
    
    $
    46,687
    
    
    $
    191
    
    
    
    0.41
    %Savings deposits
    
    
    44,759
    
    
    
    357
    
    
    
    0.80
    
    
    
    42,904
    
    
    
    189
    
    
    
    0.44
    
    
    
    37,989
    
    
    
    199
    
    
    
    0.53Time deposits
    
    
    117,372
    
    
    
    3,579
    
    
    
    3.05
    
    
    
    116,418
    
    
    
    2,944
    
    
    
    2.53
    
    
    
    121,298
    
    
    
    3,459
    
    
    
    2.85Other borrowed funds
    
    
    30,083
    
    
    
    684
    
    
    
    2.27
    
    
    
    34,540
    
    
    
    636
    
    
    
    1.84
    
    
    
    30,981
    
    
    
    782
    
    
    
    2.52Total interest-bearing liabilities
    
    
    241,235
    
    
    
    4,812
    
    
    
    1.99
    
    
    
    241,904
    
    
    
    3,874
    
    
    
    1.60
    
    
    
    236,955
    
    
    
    4,631
    
    
    
    1.95Noninterest-bearing liabilities
and shareholders equityDemand deposits
    
    
    37,855
    
    
    
    
    
    
    
    
    
    
    
    34,310
    
    
    
    
    
    
    
    
    
    
    
    30,551Other liabilities
    
    
    1,232
    
    
    
    
    
    
    
    
    
    
    
    988
    
    
    
    
    
    
    
    
    
    
    
    735Shareholders equity
    
    
    36,290
    
    
    
    
    
    
    
    
    
    
    
    35,332
    
    
    
    
    
    
    
    
    
    
    
    34,360Total liabilities and equity
    
    $
    316,612
    
    
    
    
    
    
    
    
    
    
    $
    312,534
    
    
    
    
    
    
    
    
    
    
    $
    302,601Net interest income
    
    
    
    
    
    $
    12,546
    
    
    
    
    
    
    
    
    
    
    $
    11,200
    
    
    
    
    
    
    
    
    
    
    $
    10,783Net interest margin
    
    
    
    
    
    
    
    
    
    
    4.23
    %
    
    
    
    
    
    
    
    
    
    
    3.83
    %
    
    
    
    
    
    
    
    
    
    
    3.81
    %
 
 (1)
    
    Average balances have been computed on an average daily basis.(2)
    
    Average rates have been computed based on the amortized cost of the corresponding asset or
liability.(3)
    
    Average loan balances include nonaccrual loans. 13




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##### 



CSB Bancorp, Inc. Report to Shareholders
 2005 Financial Review
 Rate/volume Analysis of Changes in Income and Expense(1)(Dollars in thousands)2005 v.2004
    
    
    2004 v.2003Change
    
    
    
    
    
    
    
    
    
    
    Changein Income/
    
    
    Volume
    
    
    Rate
    
    

in Income/
    
    
    Volume
    
    
    RateExpense
    
    
    Effect
    
    
    Effect
    
    
    Expense
    
    
    Effect
    
    
    EffectInterest IncomeFederal funds sold
    
    $
    105
    
    
    $
    60
    
    
    $
    45
    
    
    $
    5
    
    
    $
    (23
    )
    
    $
    28Interest-earning deposits
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    (1
    )Securities:Taxable
    
    
    741
    
    
    
    537
    
    
    
    204
    
    
    
    482
    
    
    
    452
    
    
    
    30Tax exempt
    
    
    (784
    )
    
    
    (688
    )
    
    
    (96
    )
    
    
    (496
    )
    
    
    (479
    )
    
    
    (17
    )Loans
    
    
    2,221
    
    
    
    245
    
    
    
    1,976
    
    
    
    (330
    )
    
    
    427
    
    
    
    (757
    )Total interest income
    
    
    2,284
    
    
    
    155
    
    
    
    2,129
    
    
    
    (340
    )
    
    
    377
    
    
    
    (717
    )Interest ExpenseDemand deposits
    
    
    87
    
    
    
    3
    
    
    
    84
    
    
    
    (86
    )
    
    
    3
    
    
    
    (89
    )Savings deposits
    
    
    168
    
    
    
    15
    
    
    
    153
    
    
    
    (10
    )
    
    
    22
    
    
    
    (32
    )Time deposits
    
    
    635
    
    
    
    30
    
    
    
    605
    
    
    
    (515
    )
    
    
    (123
    )
    
    
    (392
    )Other borrowed funds
    
    
    48
    
    
    
    (101
    )
    
    
    149
    
    
    
    (146
    )
    
    
    66
    
    
    
    (212
    )Total interest expense
    
    
    938
    
    
    
    (53
    )
    
    
    991
    
    
    
    (757
    )
    
    
    (32
    )
    
    
    (725
    )Net interest income
    
    $
    1,346
    
    
    $
    208
    
    
    $
    1,138
    
    
    $
    417
    
    
    $
    409
    
    
    $
    8
 
 (1)
    
    Changes attributable to both volume and rate, which cannot be segregated, have been
allocated based on the absolute value of the change due to volume and the change due to rate.  2005
    
    
    2004
    
    
    2003Net interest income
    
    $
    12,545,579
    
    
    $
    11,199,632
    
    
    $
    10,783,073Taxable
equivalent adjustment (1)
    
    
    333,531
    
    
    
    739,703
    
    
    
    981,555Net interest incomefully taxable
equivalent
    
    $
    12,879,110
    
    
    $
    11,939,335
    
    
    $
    11,764,628Net interest yield
    
    
    4.23
    %
    
    
    3.83
    %
    
    
    3.81
    %Taxable equivalent adjustment
(1)
    
    
    .11
    
    
    
    .25
    
    
    
    .35Net interest yield -
taxable equivalent
    
    
    4.35
    %
    
    
    4.08
    %
    
    
    4.16
    %
 
 (1)
    
    Taxable equivalent adjustments have been computed assuming a 34% tax rate. Provision (Credit) for Loan Losses
  14




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##### 



CSB Bancorp, Inc. Report to Shareholders
 2005 Financial Review
 Noninterest Income
   Noninterest Expenses
   Income Taxes
  Financial Condition
  15




---



##### 



Bancorp Inc. Report to Shareholders
 Financial Review
 Securities
   Loans
     Allowance
for Loan Losses
  16




---



##### 



Bancorp Inc. | Report to Shareholders
 Financial Review
     Other
Assets
  Deposits
  Other
Funding Sources
  17




---



##### 



Bancorp Inc. Report to Shareholders
 Financial Review
 Capital Resources
   
 Liquidity
   18




---



##### 



Bancorp Inc. Report to Shareholders
 Financial Review
 Quantitative and Qualitative Disclosures About Market Risk
     2005(Dollars in Thousands)Change inInterest Rates
    
    Net Interest
    
    
    Dollar
    
    
    Percentage(basis points)
    
    Income
    
    
    Change
    
    
    Change+200
    
    $
    15,042
    
    
    $
    1,198
    
    
    
    8.7
    %+100
    
    
    14,387
    
    
    
    543
    
    
    
    3.90
    
    
    13,844
    
    
    
    0
    
    
    
    0.0100
    
    
    13,383
    
    
    
    (461
    )
    
    
    (3.3
    )200
    
    
    12,741
    
    
    
    (1,103
    )
    
    
    (8.0
    )
 2004(Dollars in Thousands)Change inInterest Rates
    
    Net Interest
    
    

Dollar
    
    
    Percentage(basis points)
    
    Income
    
    
    Change
    
    
    Change+200
    
    $
    13,598
    
    
    $
    1,455
    
    
    
    12.0
    %+100
    
    
    12,812
    
    
    
    669
    
    
    
    5.50
    
    
    12,143
    
    
    
    0
    
    
    
    0.0100
    
    
    11,526
    
    
    
    (617
    )
    
    
    (5.1
    )200
    
    
    10,762
    
    
    
    (1,381
    )
    
    
    (11.4
    )
  19




---



##### 



ancorp Inc. eport to hareholders
 inancial eview
 ignificant ssumptions and ther onsiderations
   air alue of inancial nstruments
  ff-balance heet rrangements ontractual bligations and ontingent iabilities and ommitments
  Amount of Commitment to Expire Per Period(Dollars in Thousands)Total
    
    
    Less Than 1
    
    
    13
    
    
    45
    
    
    Over 5Type of Commitment
    
    Amount
    
    
    Year
    
    
    Years
    
    
    Years
    
    
    YearsCommercial lines-of-credit
    
    $
    26,592
    
    
    $
    26,592Real estate lines-of-credit
    
    
    15,553
    
    
    
    11
    
    
    $
    91
    
    
    $
    433
    
    
    $
    15,018Consumer lines-of-credit
    
    
    262
    
    
    
    262Credit card lines-of-credit
    
    
    10,462
    
    
    
    10,462Overdraft Privilege
    
    
    5,658
    
    
    
    5,658Letters of credit
    
    
    541
    
    
    
    541Total Commitments
    
    $
    59,068
    
    
    $
    43,526
    
    
    $
    91
    
    
    $
    433
    
    
    $
    15,018
 20




---



##### 



Bancorp Inc. Report to Shareholders
 Financial Review
   Payment Due by Period(Dollars in Thousands)Total
    
    
    Less Than 1
    

    13
    
    

    45
    
    
    Over 5Contractual Obligations
    
    Amount
    
    
    Year
    
    
    Years
    
    
    Years
    
    
    YearsShort-term debt
    
    $
    21,418
    
    
    $
    21,418Long-term debt
    
    
    8,068
    
    
    
    5,568
    
    
    $
    893
    
    
    $
    692
    
    
    $
    915Capital leasesOperating leases
    
    
    86
    
    
    
    50
    
    
    
    36Unconditional purchase obligationsOtherTotal Obligations
    
    $
    29,572
    
    
    $
    27,036
    
    
    $
    929
    
    
    $
    692
    
    
    $
    915
  Recently Issued Accounting Pronouncements
   21




---



##### 



Bancorp , Inc . 2005 Report to Shareholders
 Financial Review
     Critical Accounting Policies
    22




---



##### 



CSB Bancorp, Inc. Report to Shareholders
 Financial Review
  Impact of Inflation and Changing Prices
  Common Stock and Shareholder Information
  DividendsQuarter Ended
    
    High
    
    
    Low
    
    
    DeclaredMarch 31, 2005
    
    $
    21.40
    
    
    $
    19.85
    
    
    $
    370,294June 30, 2005
    
    
    21.15
    
    
    
    20.05
    
    
    
    370,295September 30, 2005
    
    
    22.55
    
    
    
    20.35
    
    
    
    370,295December 31, 2005
    
    
    25.00
    
    
    
    21.00
    
    
    
    367,760March 31, 2004
    
    $
    18.00
    
    
    $
    17.00
    
    
    $
    343,765June 30, 2004
    
    
    18.50
    
    
    
    17.07
    
    
    
    343,765September 30, 2004
    
    
    20.25
    
    
    
    17.80
    
    
    
    343,845December 31, 2004
    
    
    21.00
    
    
    
    19.65
    
    
    
    343,846
  23




---



##### 



Bancorp Inc. Report to Shareholders
 Report
Of Independent Registered Public Accounting Firm
 
 
    
 
 24




---



##### 



Bancorp Inc. Report to Shareholders
 Consolidated
Balance Sheets
 December 31, 2005 & 2004
 2005
    
    
    2004AssetsCash and cash equivalentsCash and due from banks
    
    $
    14,785,250
    
    
    $
    12,501,954Interest-earning deposits in other banks
    
    
    124,726
    
    
    
    142,338Federal funds sold
    
    
    1,740,000
    
    
    
    3,000,000Total cash and cash equivalents
    
    
    16,649,976
    
    
    
    15,644,292SecuritiesAvailable-for-sale, at fair value
    
    
    78,273,248
    
    
    
    73,438,070Restricted stock, at cost
    
    
    2,947,000
    
    
    
    2,790,400Total securities
    
    
    81,220,248
    
    
    
    76,228,470Loans
    
    
    215,019,673
    
    
    
    218,084,479Less allowance for loan losses
    
    
    2,445,494
    
    
    
    2,574,945Net loans
    
    
    212,574,179
    
    
    
    215,509,534Premises and equipment, net
    
    
    7,671,822
    
    
    
    7,709,439Accrued interest receivable and other assets
    
    
    2,873,007
    
    
    
    2,248,608Total Assets
    
    $
    320,989,232
    
    
    $
    317,340,343Liabilities and Shareholders EquityLiabilitiesDeposits:Noninterest-bearing
    
    $
    41,807,069
    
    
    $
    41,733,596Interest-bearing
    
    
    213,595,648
    
    
    
    206,217,123Total deposits
    
    
    255,402,717
    
    
    
    247,950,719Short-term borrowings
    
    
    21,417,616
    
    
    
    18,316,473Other borrowings
    
    
    8,067,840
    
    
    
    13,745,236Accrued interest payable and other liabilities
    
    
    930,800
    
    
    
    1,120,408Total liabilities
    
    
    285,818,973
    
    
    
    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
    
    
    14,752,250
    
    
    
    13,358,321Treasury
stock at cost  89,287 shares in 2005
and 22,824 shares in 2004
    
    
    (2,086,686
    )
    
    
    (627,119
    )Accumulated other comprehensive income (loss)
    
    
    (582,887
    )
    
    
    388,723Total shareholders equity
    
    
    35,170,259
    
    
    
    36,207,507Total Liabilities and Shareholders Equity
    
    $
    320,989,232
    
    
    $
    317,340,343
 These consolidated financial statements should be read only in connection with the accompanying
summary of significant accounting policies and notes to consolidated financial statements.
 25




---



##### 



C
S B Bancorp, Inc. | Report to Shareholders
 Consolidated Statements of Income
 Years Ended December 31, 2005, 2004 & 2003
 2005
    
    
    2004
    
    
    2003Interest and Dividend IncomeLoans, including fees
    
    $
    14,343,888
    
    
    $
    12,122,379
    
    
    $
    12,452,881Taxable securities
    
    
    2,243,081
    
    
    
    1,501,812
    
    
    
    1,020,512Nontaxable securities
    
    
    624,911
    
    
    
    1,409,263
    
    
    
    1,905,372Other
    
    
    145,395
    
    
    
    40,094
    
    
    
    35,666Total interest and dividend income
    
    
    17,357,275
    
    
    
    15,073,548
    
    
    
    15,414,431Interest ExpenseDeposits
    
    
    4,128,130
    
    
    
    3,237,803
    
    
    
    3,849,339Short-term borrowings
    
    
    331,540
    
    
    
    117,127
    
    
    
    103,518Other borrowings
    
    
    352,026
    
    
    
    518,986
    
    
    
    678,501Total interest expense
    
    
    4,811,696
    
    
    
    3,873,916
    
    
    
    4,631,358Net Interest Income
    
    
    12,545,579
    
    
    
    11,199,632
    
    
    
    10,783,073Provision (Credit) For Loan Losses
    
    
    282,664
    
    
    
    422,621
    
    
    
    (51,000
    )Net interest income, after provision
(credit) for loan losses
    
    
    12,262,915
    
    
    
    10,777,011
    
    
    
    10,834,073Noninterest IncomeService charges on deposit
accounts
    
    
    1,037,377
    
    
    
    846,935
    
    
    
    790,587Merchant fees
    
    
    19,080
    
    
    
    163,086
    
    
    
    207,811Trust services
    
    
    484,468
    
    
    
    386,469
    
    
    
    375,929Securities gains
    
    
    247,047
    
    
    
    587,916
    
    
    
    1,068Gain on sale of loans
    
    
    23,502
    
    
    
    13,481
    
    
    
    68,267Gain on sale of other real estate
owned
    
    
    10,000
    
    
    
    
    
    
    
    114,836Other
    
    
    759,015
    
    
    
    682,423
    
    
    
    596,855Total noninterest income
    
    
    2,580,489
    
    
    
    2,680,310
    
    
    
    2,155,353Noninterest ExpensesSalaries and employee benefits
    
    
    5,671,149
    
    
    
    5,250,732
    
    
    
    5,516,584Occupancy expense
    
    
    677,067
    
    
    
    642,048
    
    
    
    647,157Equipment expense
    
    
    524,112
    
    
    
    515,267
    
    
    
    490,483Franchise tax expense
    
    
    427,435
    
    
    
    419,527
    
    
    
    408,544Professional and director fees
    
    
    677,252
    
    
    
    680,043
    
    
    
    894,314Other expenses
    
    
    2,825,750
    
    
    
    2,770,469
    
    
    
    2,842,235Total noninterest
expenses
    
    
    10,802,765
    
    
    
    10,278,086
    
    
    
    10,799,317Income
before
income
taxes
    
    
    4,040,639
    
    
    
    3,179,235
    
    
    
    2,190,109Federal Income Tax Provision
    
    
    1,168,000
    
    
    
    653,000
    
    
    
    130,000Net Income
    
    $
    2,872,639
    
    
    $
    2,526,235
    
    
    $
    2,060,109Net Income Per ShareBasic
    
    $
    1.09
    
    
    $
    .96
    
    
    $
    .78Diluted
    
    $
    1.09
    
    
    $
    .95
    
    
    $
    .78
 These consolidated financial statements should be read only in connection with the accompanying
summary of significant accounting policies and notes to consolidated financial statements.
 26




---



##### 



C
S B Bancorp, Inc. | Report to Shareholders
 Consolidated Statements of Shareholders Equity
 Years Ended December 31, 2005, 2004 & 2003
 AccumulatedAdditional
    
    
    
    
    
    
    
    
    
    
    OtherCommon
    
    
    Paid-In
    
    
    Retained
    
    
    Treasury
    
    
    ComprehensiveStock
    
    
    Capital
    
    
    Earnings
    
    
    Stock
    
    
    Income (Loss)
    
    
    TotalBalance at December
31, 2002
    
    $
    16,673,667
    
    
    $
    6,413,915
    
    
    $
    11,621,292
    
    
    $
    (1,088,312
    )
    
    $
    121,722
    
    
    $
    33,742,284Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    2,060,109
    
    
    
    
    
    
    
    
    
    
    
    2,060,109Change in net
unrealized gain
(loss), net of
reclassification
adjustments and
related
income tax benefit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (60,579
    )
    
    
    (60,579
    )Total
comprehensive
income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,999,530Issuance of 15,135 shares from
treasury under dividend
reinvestment program
    
    
    
    
    
    
    
    
    
    
    (200,122
    )
    
    
    461,119
    
    
    
    
    
    
    
    260,997Purchase of 1,043 treasury
shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18,745
    )
    
    
    
    
    
    
    (18,745
    )Cash dividends declared,
$.48 per share
    
    
    
    
    
    
    
    
    
    
    (1,266,528
    )
    
    
    
    
    
    
    
    
    
    
    (1,266,528
    )Balance at December
31, 2003
    
    
    16,673,667
    
    
    
    6,413,915
    
    
    
    12,214,751
    
    
    
    (645,938
    )
    
    
    61,143
    
    
    
    34,717,538Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    2,526,235
    
    
    
    
    
    
    
    
    
    
    
    2,526,235Change in net unrealized gain
(loss),
net of reclassification
adjustments and related
income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    327,580
    
    
    
    327,580Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,853,815Issuance of 612 shares from
treasury under dividend
reinvestment program
    
    
    
    
    
    
    
    
    
    
    (7,444
    )
    
    
    18,819
    
    
    
    
    
    
    
    11,375Cash dividends declared,
$.52 per share
    
    
    
    
    
    
    
    
    
    
    (1,375,221
    )
    
    
    
    
    
    
    
    
    
    
    (1,375,221
    )Balance at December
31, 2004
    
    
    16,673,667
    
    
    
    6,413,915
    
    
    
    13,358,321
    
    
    
    (627,119
    )
    
    
    388,723
    
    
    
    36,207,507Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    2,872,639
    
    
    
    
    
    
    
    
    
    
    
    2,872,639Change in net unrealized gain
(loss),
net of reclassification
adjustments and related
income tax benefit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (971,610
    )
    
    
    (971,610
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,901,029Issuance of 6 shares from
treasury
    
    
    
    
    
    
    
    
    
    
    (64
    )
    
    
    185
    
    
    
    
    
    
    
    121Purchase of 66,469 treasury
shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,459,752
    )
    
    
    
    
    
    
    (1,459,752
    )Cash dividends declared,
$.56 per share
    
    
    
    
    
    
    
    
    
    
    (1,478,646
    )
    
    
    
    
    
    
    
    
    
    
    (1,478,646
    )Balance at December
31, 2005
    
    $
    16,673,667
    
    
    $
    6,413,915
    
    
    $
    14,752,250
    
    
    $
    (2,086,686
    )
    
    $
    (582,887
    )
    
    $
    35,170,259
 These consolidated financial statements should be read only in connection
with the accompanying summary of significant accounting policies and notes to
consolidated financial statements.
 27




---



##### 



C
S B Bancorp, Inc. | Report to Shareholders
 Consolidated Statements of Cash Flows
 Years Ended December 31, 2005, 2004 & 2003
 2005
    
    
    2004
    
    
    2003Cash Flows from Operating ActivitiesNet income
    
    $
    2,872,639
    
    
    $
    2,526,235
    
    
    $
    2,060,109Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation and amortization of
premises, equipment and software
    
    
    758,310
    
    
    
    760,009
    
    
    
    723,841Deferred income taxes
    
    
    408,837
    
    
    
    115,246
    
    
    
    (113,793
    )Provision (credit) for loan losses
    
    
    282,664
    
    
    
    422,621
    
    
    
    (51,000
    )Gain on sale of loans
    
    
    (23,502
    )
    
    
    (13,481
    )
    
    
    (68,267
    )Securities gains
    
    
    (247,047
    )
    
    
    (587,916
    )
    
    
    (1,068
    )Gain on sale of other real estate
owned
    
    
    (10,000
    )
    
    
    
    
    
    
    (114,836
    )Security amortization, net of
accretion
    
    
    83,699
    
    
    
    31,448
    
    
    
    14,764Federal Home Loan Bank stock
dividends
    
    
    (156,600
    )
    
    
    (99,800
    )
    
    
    (97,100
    )Secondary market loan sale proceeds
    
    
    2,868,967
    
    
    
    1,281,531
    
    
    
    7,933,025Originations of secondary market
loans held-for-sale
    
    
    (2,845,465
    )
    
    
    (1,268,050
    )
    
    
    (7,864,758
    )Effects of changes in operating
assets and liabilities:Net deferred loan fees
    
    
    (39,536
    )
    
    
    (104,489
    )
    
    
    (21,088
    )Accrued interest
receivable
    
    
    (201,106
    )
    
    
    (118,785
    )
    
    
    320,468Accrued interest payable
    
    
    41,649
    
    
    
    (10,309
    )
    
    
    (41,701
    )Other assets and
liabilities
    
    
    125,107
    
    
    
    (61,750
    )
    
    
    758,858Net cash provided by operating activities
    
    $
    3,918,616
    
    
    $
    2,772,710
    
    
    $
    3,340,354Cash Flows from Investing ActivitiesSecurities available-for-sale:Proceeds from maturities and
repayments
    
    $
    15,056,944
    
    
    $
    25,896,718
    
    
    $
    38,128,846Proceeds from sale
    
    
    5,094,640
    
    
    
    11,928,699
    
    
    
    Purchases
    
    
    (26,295,553
    )
    
    
    (48,940,043
    )
    
    
    (44,537,368
    )Securities held-to-maturity:Proceeds from maturities and
repayments
    
    
    
    
    
    
    3,812,000
    
    
    
    11,714,947Loan originations, net of repayments
    
    
    2,067,227
    
    
    
    (5,032,068
    )
    
    
    (13,614,238
    )Proceeds from sale of other real estate
    
    
    195,000
    
    
    
    
    
    
    
    169,000Property, equipment and software expenditures
    
    
    (624,692
    )
    
    
    (440,730
    )
    
    
    (216,879
    )Net cash used in investing activities
    
    $
    (4,506,434
    )
    
    $
    (12,675,624
    )
    
    $
    (8,258,592
    )
 These consolidated financial statements should be read only in connection with the accompanying
summary of significant accounting policies and notes to consolidated financial statements.
 28




---



##### 



C
S B Bancorp, Inc. | Report to Shareholders
 Consolidated Statements of Cash Flows
 Years Ended December 31, 2005, 2004 & 2003
 2005
    
    
    2004
    
    
    2003Cash Flows from Financing ActivitiesNet change in deposits
    
    $
    7,451,998
    
    
    $
    (1,007,028
    )
    
    $
    8,981,814Net change in short-term borrowings
    
    
    5,000,000
    
    
    
    
    
    
    
    Net change in securities sold under
repurchase agreements
    
    
    3,101,143
    
    
    
    1,457,421
    
    
    
    (2,589,332
    )Federal Home Loan Bank borrowings:Proceeds
    
    
    
    
    
    
    10,000,000
    
    
    
    5,000,000Repayments
    
    
    (10,677,396
    )
    
    
    (767,245
    )
    
    
    (10,867,579
    )Purchase of treasury shares
    
    
    (1,459,752
    )
    
    
    
    
    
    
    (18,745
    )Cash dividends paid
    
    
    (1,822,491
    )
    
    
    (1,337,323
    )
    
    
    (951,235
    )Net cash provided by
(used in) financing
activities
    
    $
    1,593,502
    
    
    $
    8,345,825
    
    
    $
    (445,077
    )Net Increase (Decrease) in
Cash and Cash Equivalents
    
    
    1,005,684
    
    
    
    (1,557,089
    )
    
    
    (5,363,315
    )Cash and Cash Equivalents
at Beginning of Year
    
    
    15,644,292
    
    
    
    17,201,381
    
    
    
    22,564,696Cash and Cash Equivalents
at End of Year
    
    $
    16,649,976
    
    
    $
    15,644,292
    
    
    $
    17,201,381Supplemental DisclosuresCash paid during the year for:Interest
    
    $
    4,770,048
    
    
    $
    3,884,225
    
    
    $
    4,673,059Income taxes
    
    
    665,000
    
    
    
    550,000
    
    
    
    20,000Noncash investing activities:Transfer of loans to
other real estate owned
    
    
    625,000
    
    
    
    
    
    
    
    Transfer of securities
from held-to-maturity
to available-for-sale
    
    
    
    
    
    
    31,681,132
    
    
    
    Noncash financing activity  payments
of dividends through issuance of
treasury shares, under dividend
reinvestment program
    
    $
    
    
    
    $
    11,375
    
    
    $
    260,997
 These consolidated financial statements should be read only in connection
with the accompanying summary of significant accounting policies and notes to
consolidated financial statements.
 29




---



##### 



C
S B Bancorp, Inc. | Report to Shareholders
 Summary of Significant Accounting Policies
 wholly-owned
   Use of Estimates in Preparing Financial Statements
  Principles of Consolidation
   Cash and Cash Equivalents
  Cash Reserve Requirements
  Securities
     30




---



##### 



C
S B Bancorp, Inc. | Report to Shareholders
 Summary of Significant Accounting Policies
 Loans
   Allowance for Loan Losses
     Other Real Estate Owned
  Premises and Equipment
  31




---



##### 



C
S B Bancorp, Inc. | Report to Shareholders
 Summary of Significant Accounting Policies
  Repurchase Agreements
  Advertising Costs
  Federal Income Taxes
   Stock-Based Compensation
 Black-Scholes
 2005
    
    2004
    
    2003Net income as reported
    
    $2,872,639
    
    $2,526,235
    
    $2,060,109Pro forma net income
    
    2,867,223
    
    2,469,434
    
    2,031,391Basic earnings per share as reported
    
    1.09
    
    .96
    
    .78Pro forma basic earnings per share
    
    1.09
    
    .93
    
    .77Diluted earnings per share as reported
    
    1.09
    
    .95
    
    .78Pro forma diluted earnings per share
    
    1.09
    
    .93
    
    .77
  2004
    
    2003Risk-free interest rate
    
    3.34%
    
    2.75%Expected option life (years)
    
    3.5
    
    6.4Dividend yield
    
    2.6%
    
    2.5%
  32




---



##### 



C
S B Bancorp, Inc. | Report to Shareholders
 Summary of Significant Accounting Policies
   Comprehensive Income
  Transfers of Financial Assets
  Per Share Data
   2005
    
    
    2004
    
    
    2003Weighted average common shares
outstanding
    
    
    2,667,786
    
    
    
    2,667,786
    
    
    
    2,667,786Average treasury shares
    
    
    (29,089
    )
    
    
    (23,204
    )
    
    
    (29,426
    )Total weighted average common
shares outstanding (basic)
    
    
    2,638,697
    
    
    
    2,644,582
    
    
    
    2,638,360Dilutive effect of assumed exercise
of stock options
    
    
    3,604
    
    
    
    6,366
    
    
    
    3,527Weighted average common shares
outstanding (diluted)
    
    
    2,642,301
    
    
    
    2,650,948
    
    
    
    2,641,887
  Reclassification of Comparative Amounts
  33




---



##### 



C
S B Bancorp, Inc. | Report to Shareholders
 Notes to Consolidated Financial Statements
 Note
1  Securities
  Gross
    
    
    GrossUnrealized
    
    
    UnrealizedAmortized
Cost
    
    
    Gains
    
    
    Losses
    
    
    Fair ValueDecember 31, 2005Available-for-sale:U.S. Treasury security
    
    $
    99,938
    
    
    $
    
    
    
    $
    1,313
    
    
    $
    98,625Obligations of U.S. Government
corporations and agencies
    
    
    42,991,204
    
    
    
    4,376
    
    
    
    765,254
    
    
    
    42,230,326Mortgage-backed securities
    
    
    27,368,053
    
    
    
    14,166
    
    
    
    376,262
    
    
    
    27,005,957Obligations of states and
political subdivisions
    
    
    8,392,840
    
    
    
    242,499
    
    
    
    1,943
    
    
    
    8,633,396Total debt securities
    
    
    78,852,035
    
    
    
    261,041
    
    
    
    1,144,772
    
    
    
    77,968,304Equity securities
    
    
    304,376
    
    
    
    6,080
    
    
    
    5,512
    
    
    
    304,944Total available for-sale
    
    
    79,156,411
    
    
    
    267,121
    
    
    
    1,150,284
    
    
    
    78,273,248Restricted stock
    
    
    2,947,000
    
    
    
    
    
    
    
    
    
    
    
    2,947,000Total securities
    
    $
    82,103,411
    
    
    $
    267,121
    
    
    $
    1,150,284
    
    
    $
    81,220,248December 31, 2004Available-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
    
    
    $
    6,228,470
 34




---



##### 



C
S B Bancorp, Inc. | Report to Shareholders
 Notes to Consolidated Financial Statements
 Note
1  Securities (Continued)
  Amortized
    
    
    FairCost
    
    
    ValueAvailable-for-sale:Due in one year or less
    
    $
    8,002,851
    
    
    $
    7,982,165Due after one through five years
    
    
    42,236,309
    
    
    
    41,749,504Due after five years through ten years
    
    
    6,901,299
    
    
    
    6,778,125Due after ten years
    
    
    21,711,576
    
    
    
    21,458,510Total available-for-sale
    
    $
    78,852,035
    
    
    $
    77,968,304
     35




---



##### 



C
S B Bancorp, Inc. | Report to Shareholders
 Notes to Consolidated Financial Statements
 Note
1  Securities (Continued)
  Securities in a Continuous Unrealized Loss PositionLess Than 12 Months
    
    
    12 Months or More
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossUnrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    FairLosses
    
    
    Value
    
    
    Losses
    
    

Value
    
    
    Losses
    
    
    Value2005Obligations of U.S.
Government
corporations and agencies
    
    $
    118,828
    
    
    $
    12,375,473
    
    
    $
    646,426
    
    
    $
    27,850,477
    
    
    $
    765,254
    
    
    $
    40,225,950Mortgage-backed securities
    
    
    175,196
    
    
    
    10,604,264
    
    
    
    201,066
    
    
    
    7,595,041
    
    
    
    376,262
    
    
    
    18,199,305Obligations of states
and political subdivisions
    
    
    1,943
    
    
    
    249,793
    
    
    
    
    
    
    
    
    
    
    
    1,943
    
    
    
    249,793U.S. Treasury
    
    
    1,313
    
    
    
    98,625
    
    
    
    
    
    
    
    
    
    
    
    1,313
    
    
    
    98,625Total debt securities
    
    $
    297,280
    
    
    $
    23,328,155
    
    
    $
    847,492
    
    
    $
    35,445,518
    
    
    $
    1,144,772
    
    
    $
    58,773,673Equity securities
    
    
    5,512
    
    
    
    135,650
    
    
    
    
    
    
    
    
    
    
    
    5,512
    
    
    
    135,650Total temporarily
impaired securities
    
    $
    302,792
    
    
    $
    23,463,805
    
    
    $
    847,492
    
    
    $
    35,445,518
    
    
    $
    1,150,284
    
    
    $
    58,909,3232004Obligations of U.S.
Government corporations and agencies
    
    $
    253,805
    
    
    $
    29,240,789
    
    
    $
    28,269
    
    
    $
    3,979,056
    
    
    $
    282,074
    
    
    $
    33,219,845Mortgage-backed securities
    
    
    65,250
    
    
    
    8,847,373
    
    
    
    7,626
    
    
    
    1,954,414
    
    
    
    72,876
    
    
    
    10,801,787Total temporarily
impaired securities
    
    $
    319,055
    
    
    $
    38,088,162
    
    
    $
    35,895
    
    
    $
    5,933,470
    
    
    $
    354,950
    
    
    $
    44,021,632
  Note 2
 Loans
  2005
    
    
    2004Commercial
    
    $
    69,922,000
    
    
    $
    77,231,142Commercial real estate
    
    
    52,660,795
    
    
    
    43,743,785Residential real estate
    
    
    78,722,274
    
    
    
    78,861,767Installment and credit card
    
    
    11,539,910
    
    
    
    10,273,257Construction
    
    
    2,120,081
    
    
    
    8,033,519Deferred loan costs (fees), net
    
    
    54,613
    
    
    
    (58,991
    )Total Loans
    
    $
    215,019,673
    
    
    $
    218,084,479
 36




---



##### 



C
S B Bancorp, Inc. | Report to Shareholders
 Notes to Consolidated Financial Statements
 Note
2  Loans (Continued)
  2005
    
    
    2004
    
    
    2003Beginning balance
    
    $
    2,574,945
    
    
    $
    2,458,864
    
    
    $
    2,700,643Provision (credit) for loan losses
    
    
    282,664
    
    
    
    422,621
    
    
    
    (51,000
    )Loans charged-off
    
    
    (575,556
    )
    
    
    (434,055
    )
    
    
    (337,533
    )Recoveries
    
    
    163,441
    
    
    
    127,515
    
    
    
    146,754Ending balance
    
    $
    2,445,494
    
    
    $
    2,574,945
    
    
    $
    2,458,864
  2005
    
    
    2004Year-end loans with no allowance for
loan losses allocated
    
    $
    61,338
    
    
    $
    Year-end loans with
allowance for loan
losses allocated
    
    
    503,246
    
    
    
    1,198,408Amount of the allowance allocated
    
    
    174,394
    
    
    
    388,415
 2005
    
    
    2004
    
    
    2003Average of impaired loans during the year
    
    $
    576,907
    
    
    $
    823,793
    
    
    $
    1,135,417Interest income recognized during impairment
    
    
    2,764
    
    
    
    24,105
    
    
    
    51,740Cash-basis interest income recognized
    
    
    472
    
    
    
    23,415
    
    
    
    51,039
  2005
    
    
    2004Loans past due over 90 days still accruing interest
    
    $
    168,438
    
    
    $
    119,000Nonaccrual loans
    
    
    632,868
    
    
    
    1,552,368
  Note 3
 Premises and Equipment
  2005
    
    
    2004Land and improvements
    
    $
    1,007,927
    
    
    $
    1,007,927Buildings and improvements
    
    
    8,576,855
    
    
    
    8,388,882Furniture and equipment
    
    
    5,208,855
    
    
    
    4,866,064Leasehold improvements
    
    
    79,979
    
    
    
    79,97914,873,616
    
    
    
    14,342,852Accumulated depreciation
    
    
    7,201,794
    
    
    
    6,633,413Premises and equipment, net
    
    $
    7,671,822
    
    
    $
    7,709,439
  37




---



##### 



Bancorp Inc. Report to Shareholders
 Notes to Consolidated Financial Statements
 Note 4  Interest-Bearing Deposits
  2005
    
    
    2004Demand
    
    $
    50,729,989
    
    
    $
    50,215,416Savings
    
    
    45,734,653
    
    
    
    43,285,120Time deposits:In excess of $100,000
    
    
    29,623,053
    
    
    
    30,616,776Other
    
    
    87,507,953
    
    
    
    82,099,811Total interest-bearing deposits
    
    $
    213,595,648
    
    
    $
    206,217,123
  2006
    
    $
    67,357,7582007
    
    
    29,064,1102008
    
    
    12,805,5552009
    
    
    2,904,7402010
    
    
    4,955,8982011 and beyond
    
    
    42,945Total
    
    $
    117,131,006
 Note 5  Borrowings
 Short-term borrowings
  2005
    
    2004Balance at year-end
    
    $
    21,417,616
    
    
    $
    18,316,473Average balance outstanding
    
    
    20,243,476
    
    
    
    21,360,421Maximum month-end balance
    
    
    29,467,123
    
    
    
    31,704,441Weighted-average rate at year-end
    
    
    1.54
    %
    
    
    0.88
    %Weighted-average rate during the year
    
    
    1.64
    
    
    
    0.85
 Other borrowings
 Maturity Range
    
    
    Weighted Average
    
    
    Stated interest Rate
    
    
    At December 31,Description
    
    From
    
    
    To
    
    
    Interest Rate
    
    
    From
    
    
    To
    
    
    2005
    
    
    2004Fixed rate
    
    
    3/03/06
    
    
    
    3/03/06
    
    
    
    2.15
    %
    
    
    2.15
    %
    
    
    2.15
    %
    
    $
    5,000,000
    
    
    $
    10,000,000Fixed rate amortizing
    
    
    1/01/06
    
    
    
    3/01/17
    
    
    
    6.44
    
    
    
    5.60
    
    
    
    7.15
    
    
    
    3,067,840
    
    
    
    3,745,236$
    8,067,840
    
    
    $
    13,745,236
  Year Ending December 31,
    
    Amount
    
    Weighted-Average Rate2006
    
    
    $ 5,568,442
    
    
    
    2.59
    %2007
    
    
    475,512
    
    
    
    6.422008
    
    
    417,217
    
    
    
    6.422009
    
    
    369,517
    
    
    
    6.422010
    
    
    322,234
    
    
    
    6.422011 and beyond
    
    
    914,918
    
    
    
    6.48$ 8,067,840
    
    
    
    3.79
    %
  38




---



##### 



ancorp, Inc. eport to hareholders
 Notes to Consolidated Financial Statements
 Note 6  Income Taxes
  2005
    
    
    2004
    
    
    2003Current
    
    $
    759,163
    
    
    $
    537,754
    
    
    $
    243,793Deferred
    
    
    408,837
    
    
    
    115,246
    
    
    
    (113,793
    )Total income tax provision
    
    $
    1,168,000
    
    
    $
    653,000
    
    
    $
    130,000
  2005
    
    
    2004
    
    
    2003Expected provision using statutory
federal income tax rate
    
    $
    1,373,800
    
    
    $
    1,080,900
    
    
    $
    744,600Tax-exempt income on state and municipal
securities and political subdivision loans
    
    
    (218,400
    )
    
    
    (474,500
    )
    
    
    (662,900
    )Interest expense associated with carrying
certain state and municipal securities
and political subdivision loans
    
    
    14,300
    
    
    
    24,700
    
    
    
    41,400Other
    
    
    (1,700
    )
    
    
    21,900
    
    
    
    6,900Total income tax provision
    
    $
    1,168,000
    
    
    $
    653,000
    
    
    $
    130,000
  2005
    
    
    2004Allowance for loan losses
    
    $
    524,000
    
    
    $
    550,900Alternative minimum tax credit carryforwards
    
    
    296,000
    
    
    
    660,200Unrealized loss on securities available-for-sale
    
    
    300,275
    
    
    
    Other
    
    
    24,225
    
    
    
    30,500Deferred tax assets
    
    
    1,144,500
    
    
    
    1,241,600Unrealized gain on securities available-for-sale
    
    
    
    
    
    
    (200,252
    )Depreciation of premises and equipment
    
    
    (389,800
    )
    
    
    (452,800
    )Federal Home Loan Bank stock dividends
    
    
    (405,600
    )
    
    
    (361,500
    )Deferred loan fees
    
    
    (68,300
    )
    
    
    (85,600
    )Other
    
    
    (72,000
    )
    
    
    (23,448
    )Deferred tax liabilities
    
    
    (935,700
    )
    
    
    (1,123,600
    )Net deferred tax assets
    
    $
    208,800
    
    
    $
    118,000
   39




---



##### 



ancorp Inc. eport to hareholders
 Notes to Consolidated Financial Statements
 Note
6  Income Taxes (Continued)
  Note 7  Employee Benefits
     2005
    
    
    2004
    
    
    2003Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    AverageExercise
    
    
    
    
    
    
    Exercise
    
    
    
    
    
    
    ExerciseShares
    
    
    Price
    
    
    Shares
    
    
    Price
    
    
    Shares
    
    
    PriceOutstanding at beginning of year
    
    
    42,820
    
    
    $
    16.09
    
    
    
    42,485
    
    
    $
    16.02
    
    
    
    34,660
    
    
    $
    15.44Grant
    
    
    
    
    
    
    
    
    
    
    1,000
    
    
    
    19.00
    
    
    
    12,000
    
    
    
    17.71Exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    (20,850
    )
    
    
    (15.04
    )
    
    
    (665
    )
    
    
    (16.05
    )
    
    
    (4,175
    )
    
    
    (16.05
    )Outstanding at end of year
    
    
    21,970
    
    
    $
    17.09
    
    
    
    42,820
    
    
    $
    16.09
    
    
    
    42,485
    
    
    $
    16.02Options exercisable at year-end
    
    
    18,361
    
    
    $
    17.29
    
    
    
    36,964
    
    
    $
    16.10
    
    
    
    34,097
    
    
    $
    15.93Weighted-average fair value of options
granted during year
    
    
    
    
    
    
    N/A
    
    
    
    
    
    
    $
    2.94
    
    
    
    
    
    
    $
    1.51
 40




---



##### 



CSB
Bancorp, Inc. Report to Shareholders
 Notes to Consolidated Financial Statements
 Note 7  Employee Benefit (Continued)
  Outstanding
    
    
    ExercisableWeighted Average
    
    
    
    
    
    
    WeightedRemaining
    
    
    
    
    
    
    AverageRange of
    
    
    
    
    
    
    Contractual Life
    
    
    
    
    
    
    ExerciseExercisable Prices
    
    
    Number
    
    
    (Years)
    
    
    Number
    
    
    Price$
    16.05
    
    
    
    8,970
    
    
    
    6.90
    
    
    
    5,361
    
    
    
    16.0517.50
    
    
    
    2,000
    
    
    
    2.55
    
    
    
    2,000
    
    
    
    17.5017.75
    
    
    
    10,000
    
    
    
    2.35
    
    
    
    10,000
    
    
    
    17.7519.00
    
    
    
    1,000
    
    
    
    3.56
    
    
    
    1,000
    
    
    
    19.00Outstanding at year-end
    
    21,970
    
    
    
    4.28
    
    
    
    18,361
    
    
    $
    17.29
 Note 8  Financial Instruments with Off-Balance Sheet Risk
    Contract amount2005
    
    
    2004Commitments to extend credit
    
    $
    58,527,000
    
    
    $
    45,485,000Letters of credit
    
    $
    541,000
    
    
    $
    555,000
   41




---



##### 



CSB
Bancorp, Inc. Report to Shareholders
 Notes to Consolidated Financial Statements
 Note 9  Related-Party Transactions
  Contract amount2005Balance at beginning of year
    
    $
    6,317,119New loans and advances
    
    
    5,686,789Repayments, including loans sold
    
    
    (5,843,091)Balance at end of year
    
    $
    6,160,817
  Note 10  Regulatory Matters
    42




---



##### 



CSB
Bancorp, Inc. Report to Shareholders
 Notes to Consolidated Financial Statements
 Note 10  Regulatory Matters (Continued)
  Minimum Requiredto be Well-CapitalizedMinimum Required
    
    Under Promptfor Capital
    
    Corrective ActionActual
    
    Adequacy Purposes
    
    RegulationsAmount
    
    Ratio
    
    Amount
    
    Ratio
    
    Amount
    
    RatioAs of December 31, 2005Total capital (to
risk-weighted assets)Consolidated
    
    $
    38,196
    
    
    
    18.2
    %
    
    $
    16,772
    
    
    
    8.0
    %
    
    $
    20,965
    
    
    
    10.0
    %Bank
    
    
    35,562
    
    
    
    17.0
    
    
    
    16,766
    
    
    
    8.0
    
    
    
    20,957
    
    
    
    10.0Tier I capital (to risk-weighted
assets)Consolidated
    
    
    35,750
    
    
    
    17.1
    
    
    
    8,386
    
    
    
    4.0
    
    
    
    12,579
    
    
    
    6.0Bank
    
    
    33,116
    
    
    
    15.8
    
    
    
    8,383
    
    
    
    4.0
    
    
    
    12,574
    
    
    
    6.0Tier I capital (to average assets)Consolidated
    
    
    35,750
    
    
    
    11.1
    
    
    
    12,905
    
    
    
    4.0
    
    
    
    16,131
    
    
    
    5.0Bank
    
    
    33,116
    
    
    
    10.3
    
    
    
    12,869
    
    
    
    4.0
    
    
    
    16,087
    
    
    
    5.0As of December 31, 2004Total capital (to risk-weighted
assets)Consolidated
    
    $
    38,410
    
    
    
    18.4
    %
    
    $
    16,673
    
    
    
    8.0
    %
    
    
    N/A
    
    
    
    N/ABank
    
    
    36,505
    
    
    
    17.5
    
    
    
    16,656
    
    
    
    8.0
    
    
    $
    20,820
    
    
    
    10.0
    %Tier I capital (to risk-weighted
assets)Consolidated
    
    
    35,835
    
    
    
    17.2
    
    
    
    8,336
    
    
    
    4.0
    
    
    
    N/A
    
    
    
    N/ABank
    
    
    33,930
    
    
    
    16.3
    
    
    
    8,328
    
    
    
    4.0
    
    
    
    12,492
    
    
    
    6.0Tier I capital (to average assets)Consolidated
    
    
    35,835
    
    
    
    11.5
    
    
    
    12,522
    
    
    
    4.0
    
    
    
    N/A
    
    
    
    N/ABank
    
    
    33,930
    
    
    
    10.9
    
    
    
    12,497
    
    
    
    4.0
    
    
    
    15,121
    
    
    
    5.0
   43




---



##### 



CSB
Bancorp, Inc. Report to Shareholders
 Notes to Consolidated Financial Statements
 Note 11  Condensed Parent Company Financial Information
  Condensed Balance Sheets
 2005
    
    
    2004AssetsCash deposited with subsidiary bank
    
    $
    1,620,795
    
    
    $
    1,609,532Investment in subsidiary bank
    
    
    32,528,304
    
    
    
    34,303,146Securities available-for-sale
    
    
    816,179
    
    
    
    528,399Other assets
    
    
    204,981
    
    
    
    110,275Total assets
    
    $
    35,170,259
    
    
    $
    36,551,352Liabilities and Shareholders EquityLiability  dividends payable
    
    $
    
    
    
    $
    343,845Shareholders equity:Common stock
    
    
    16,673,667
    
    
    
    16,673,667Additional paid-in capital
    
    
    6,413,915
    
    
    
    6,413,915Retained earnings
    
    
    14,752,250
    
    
    
    13,358,321Treasury stock
    
    
    (2,086,686
    )
    
    
    (627,119
    )Accumulated other comprehensive income
    
    
    (582,887
    )
    
    
    388,723Total shareholders equity
    
    
    35,170,259
    
    
    
    36,207,507Total liabilities and shareholders equity
    
    $
    35,170,259
    
    
    $
    36,551,352
 Condensed Statements of Income
 2005
    
    
    2004
    
    
    2003Interest on securities
    
    $
    25,273
    
    
    $
    24,837
    
    
    $
    24,837Dividends from subsidiary
    
    
    3,910,886
    
    
    
    1,375,221
    
    
    
    1,266,528Total income
    
    
    3,936,159
    
    
    
    1,400,058
    
    
    
    1,291,365Operating expenses
    
    
    377,211
    
    
    
    157,521
    
    
    
    104,471Income before taxes and undistributed
equity income of subsidiary
    
    
    3,558,948
    
    
    
    1,242,537
    
    
    
    1,186,894Income tax benefit
    
    
    128,000
    
    
    
    54,000
    
    
    
    37,000Equity income in subsidiary, net of dividends
    
    
    (814,309
    )
    
    
    1,229,698
    
    
    
    836,215Net income
    
    $
    2,872,639
    
    
    $
    2,526,235
    
    
    $
    2,060,109
 44




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##### 



CSB
Bancorp, Inc. Report to Shareholders
 Notes to Consolidated Financial Statements
 Note 11  Condensed Parent Company Financial Information (Continued)
 Condensed Statements of Cash Flows
 2005
    
    
    2004
    
    
    2003Cash flows from operating activities:Net income
    
    $
    2,872,639
    
    
    $
    2,526,235
    
    
    $
    2,060,109Adjustments to reconcile net income
to cash provided by operations:Security accretion
    
    
    (187
    )
    
    
    (187
    )
    
    
    (187
    )Software amortization
    
    
    5,000
    
    
    
    
    
    
    
    Equity income in subsidiary, net of dividends
    
    
    814,309
    
    
    
    (1,229,698
    )
    
    
    (836,215
    )Change in other assets, liabilities
    
    
    (73,879
    )
    
    
    (17,000
    )
    
    
    7,578Net cash provided by operating activities
    
    
    3,617,882
    
    
    
    1,279,350
    
    
    
    1,231,285Cash flows from investing activities:Purchase of investment securities
    
    
    (304,376
    )
    
    
    
    
    
    
    Purchase of software
    
    
    (20,000
    )
    
    
    
    
    
    
    Net cash used in investing activities
    
    
    (324,376
    )
    
    
    
    
    
    
    Cash flows from financing activities:Purchase of treasury shares
    
    
    (1,459,752
    )
    
    
    
    
    
    
    (18,745
    )Cash dividends paid
    
    
    (1,822,491
    )
    
    
    (1,337,323
    )
    
    
    (951,235
    )Net cash used in financing activities
    
    
    (3,282,243
    )
    
    
    (1,337,323
    )
    
    
    (969,980
    )Net change in cash
    
    
    11,263
    
    
    
    (57,973
    )
    
    
    261,305Cash at beginning of year
    
    
    1,609,532
    
    
    
    1,667,505
    
    
    
    1,406,200Cash at end of year
    
    $
    1,620,795
    
    
    $
    1,609,532
    
    
    $
    1,667,505
 Note 12  Other Comprehensive Income (Loss)
  2005
    
    
    2004
    
    
    2003Unrealized holding losses on
available-for-sale securities
    
    $
    (1,225,090
    )
    
    $
    (555,212
    )
    
    $
    (90,719
    )Unrealized holding gains on held-to-maturity
securities transferred to the
available-for-sale category
    
    
    
    
    
    
    1,639,462
    
    
    
    Less reclassification adjustment for
securities gains
recognized in income
    
    
    (247,047
    )
    
    
    (587,916
    )
    
    
    (1,068
    )Net unrealized holding gains (losses)
    
    
    (1,472,137
    )
    
    
    496,334
    
    
    
    (91,787
    )Federal income tax provision (benefit)
    
    
    (500,527
    )
    
    
    168,754
    
    
    
    (31,208
    )Other comprehensive income (loss)
    
    $
    (971,610
    )
    
    $
    327,580
    
    
    $
    (60,579
    )
 45




---



##### 



CSB
Bancorp, Inc. Report to Shareholders
 Notes to Consolidated Financial Statements
 Note 13  Fair Values of Financial Instruments
  2005
    
    2004Carrying
    
    Fair
    
    Carrying
    
    FairAmounts
    
    Value
    
    Amounts
    
    ValueFinancial assets:Cash and cash equivalents
    
    $
    16,650
    
    
    $
    16,650
    
    
    $
    15,644
    
    
    $
    15,644Securities
    
    
    81,220
    
    
    
    81,220
    
    
    
    76,228
    
    
    
    76,228Loans, net
    
    
    212,574
    
    
    
    212,139
    
    
    
    215,510
    
    
    
    216,374Financial liabilities:Deposits
    
    $
    255,403
    
    
    $
    255,053
    
    
    $
    247,951
    
    
    $
    248,526Securities sold under agreements
to repurchase
    
    
    16,418
    
    
    
    16,418
    
    
    
    13,316
    
    
    
    13,316Federal Home Loan Bank borrowings
    
    
    13,068
    
    
    
    12,998
    
    
    
    18,745
    
    
    
    18,862
    Cash and cash equivalents
  Securities
  Loans
  46




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##### 



CSB
Bancorp, Inc. Report to Shareholders
 Notes to Consolidated Financial Statements
 Note 13  Fair Values of Financial Instruments (Continued)
 Deposit liabilities
  Other financial instruments
   Note
14  Contingent Liabilities
   Note
15  Quarterly Financial Data (Unaudited)
  Net
    
    
    
    
    
    Basic
    
    DilutedInterest
    
    Interest
    
    Net
    
    Earnings
    
    EarningsIncome
    
    Income
    
    Income
    
    Per Share
    
    Per Share2005First quarter
    
    $
    3,974,179
    
    
    $
    2,928,704
    
    
    $
    666,813
    
    
    $
    .25
    
    
    $
    .25Second quarter
    
    
    4,218,725
    
    
    
    3,028,387
    
    
    
    613,744
    
    
    
    .23
    
    
    
    .23Third quarter
    
    
    4,471,807
    
    
    
    3,213,989
    
    
    
    689,373
    
    
    
    .26
    
    
    
    .26Fourth quarter
    
    
    4,692,564
    
    
    
    3,374,499
    
    
    
    902,709
    
    
    
    .35
    
    
    
    .352004First quarter
    
    $
    3,668,033
    
    
    $
    2,695,785
    
    
    $
    521,451
    
    
    $
    .20
    
    
    $
    .20Second quarter
    
    
    3,743,434
    
    
    
    2,776,332
    
    
    
    606,490
    
    
    
    .23
    
    
    
    .23Third quarter
    
    
    3,772,162
    
    
    
    2,811,714
    
    
    
    746,828
    
    
    
    .28
    
    
    
    .28Fourth quarter
    
    
    3,889,919
    
    
    
    2,915,801
    
    
    
    651,466
    
    
    
    .25
    
    
    
    .24
 47




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##### 



CSB
Bancorp, Inc. Report to Shareholders
 Officers of The Commercial & Savings Bank
 Linda C. Amos
    
    Jason R. McCullochAssistant Vice President/Mortgage Loan Officer
    
    Assistant Vice President/Brokerage ManagerWilliam D. Arnold
    
    Sherry A. McRobieVice President/Banking Center Manager
    
    Assistant Cashier/Banking Center ManagerRebecca A. Baker
    
    Paula J. MeilerAssistant Vice President/Banking Center Manager
    
    Senior Vice President/Chief Financial OfficerPamela
S. Basinger
    
    A. Lee MillerVice President/Financial Officer
    
    Vice President/Cash Management & Special ProjectsDeborah S. Berner
    
    Edward J. MillerVice President/Retail Services
    
    Vice President/Banking Center ServicesPamela L. Bromund
    
    Daniel L. MuseAssistant Vice President/Loan Operations Supervisor
    
    Operations OfficerC. Dawn Butler
    
    Lisa M. NelsonVice President/Banking Center Manager
    
    Assistant Vice President/Banking Center ManagerBeverly A. Carr
    
    Pamela S. NullOperations Officer/Deposit Processing
    
    Vice President/Compliance OfficerColby M. Chamberlin
    
    Shawn E. OswaldVice President/Retail/Small Business Lending Supervisor
    
    Vice President/Information System DirectorDale J. Clinton
    
    Thomas S. RumbaughVice President/Internal Auditor
    
    Vice President/Trust OfficerG. Gail Cochran
    
    Rebecca J. ShultzAssistant Vice President/Executive Loan Secretary
    
    Assistant Vice President/Loan OfficerPeggy L. Conn
    
    Scott A. StallmanCorporate Secretary
    
    Operations OfficerMarianne Davis
    
    Harland L. StebbinsAssistant Cashier/Banking Center Manager
    
    Vice President/Commercial LenderPaula S. Foy
    
    Eric D. StrouseVice President
    
    Vice President/Commercial LenderPhilip J. Germani
    
    Ronald L. StutzmanAssistant Vice President/Trust Officer
    
    Assistant Vice President/Banking Center ManagerRick L. Ginther
    
    Jennifer M. ThorpeSenior Vice President/Chief Lending Officer
    
    Assistant Vice President/Senior Credit AnalystLoretta Gray
    
    William R. TinlinAssistant Cashier/Assistant Banking Center Manager
    
    Vice President/Recovery/SecurityPaul D. Greig
    
    Brian D. TroyerSenior Vice President/Chief Operations & Information
Officer
    
    Assistant Vice President/Trust OperationsMarcella K. Hawkins
    
    Marsha WalkerAssistant Vice President/Trust Officer
    
    Assistant Vice President/Banking Center ManagerJulie A. Jones
    
    I. Milton WaylandVice President/Director of Human Resources
    
    Assistant Vice President/Loan OfficerStephen K. Kilpatrick
    
    Jane C. WhitmerFirst Vice President/Credit and Loan Administration
    
    Assistant Cashier/Assistant Banking Center ManagerJohn J. Limbert
    
    Ervin C. YoderPresident/Chief Executive Officer
    
    Vice President/Business Development Officer
 48




---



##### 



CSB
Bancorp, Inc. Report to Shareholders
 General Information
 The Commercial & Savings Bank
 Information & Customer Service
    
    330-674-9015 or1-800-654-901524 Hour Xpress Phone Banking
    
    330-674-2720 or1-888-438-2720Loan Services Holmes & Tuscarawas County 91 N. Clay, Millersburg
    
    Consumer Loans330-763-2823Commercial Loans330-763-2822Loan
Services Wayne County 146 E. Liberty, Suite 230, Wooster
    
    330-264-0334Trust & Investment Services Holmes & Tuscarawas County 91 N. Clay, Millersburg
    
    330-674-2397Trust & Investment Services Wayne County 146 E. Liberty, Suite 230, Wooster
    
    330-264-033424 Hour Xpress Net Banking & BillPay
    
    www.csb1.com
 CSB Banking Centers
 Millersburg Banking Centers
 Main Office6 W. Jackson
    
    330-763-2820Clinton Commons 2102 Glen Dr. (Drive-Up ATM)
    
    330-674-2265South Clay 91 S. Clay (Drive-Up ATM)
    
    330-674-0687Berlin Banking Center 4587 S.R. 39, Berlin (Drive-Up ATM)
    
    330-893-3565Charm Banking Center 4440 C.R. 70, Charm (Walk-Up ATM)
    
    330-893-3323Shreve Banking Center 333 W. South, Shreve (Drive-Up ATM)
    
    330-567-2226Sugarcreek Banking Center 127 S. Broadway, Sugarcreek (Drive-Up ATM)
    
    330-852-4444Walnut Creek Banking Center 4980 Olde Pump, Walnut Creek (Walk-Up ATM)
    
    330-893-2961Winesburg Banking Center 2225 U.S. 62, Winesburg (Drive-Up ATM)
    
    330-359-5543
 Shareholder & General Inquiries
 Stock Listing Common Symbol: CSBB.OB
 If you have questions regarding your CSB Bancorp, Inc. stock, please contact:
    
    If you are interested in
purchasing shares of CSB Bancorp, Inc., you may contact your local broker or one of the following:
    
    CSB Bancorp, Inc. is required to
file an annual report on Form 10-K with the Securities and
Exchange Commission. Copies of the Form 10-K annual report and the CompanysRegistrar and Transfer Company
    
    Jay McCulloch
    
    quarterly reports may be obtainedAttn: Investor Relations
    
    Investment Executive
    
    without charge by contacting:10 Commerce Drive
    
    Infinex Financial GroupCranford, New Jersey 07016
    
    Located at The Commercial & Savings Bank800-368-5948
    
    91 North Clay Street
    
    Paula J. Meilerwww.rtco.com
    
    P.O. Box 50
    
    Chief Financial OfficerMillersburg, Ohio 44654
    
    CSB Bancorp, Inc.330-674-2397
w 800-654-9015
    
    91 North Clay StreetMillersburg, Ohio 44654Legal Counsel
    
    George Geissbuhler
    
    330-674-9015
w
800-654-9015Bricker & Eckler LLP
    
    Sweney Cartwright & Co.100 South Third Street
    
    17 South High Street, Suite 300Columbus, Ohio 43215
    
    Columbus, Ohio 43215
 800-334-7481
    
    The annual meeting of
shareholders is currently scheduled to be held on Wednesday, April
26, 2006 at 7:00 pm, at the Carlisle Inn in Walnut Creek, Ohio.Linda ReallCapital Securities of America, Inc.150 Grand Trunk AvenueHartville, Ohio 44632(FDIC LOGO)
    
    800-494-9497
    

(LENDER LOGO)
 49