##### 








---



##### 



2007 Financial Highlights
    
    
    42007 Letter to Shareholders
    
    
    52007 Financial Review
    
    
    10Report on
Managements Assessment of Internal Control over Financial Reporting
    
    
    24Report of Independent Registered
Public Accounting Firm
    
    
    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
    
    
    35Officers of The Commercial & Savings Bank
    
    
    49General Information
    
    
    50




---



##### 








---



##### 



6 2007 FINANCIAL HIGHLIGHTS
 For the years ended December 31, 2007 and 2006
 Dollars in thousands, except per share data
 Consolidated Results
    
    2007
    
    2006
    
    % ChangeNet interest income
    
    $
    13,326
    
    
    $
    13,168
    
    
    
    1
    %Net interest income
fully taxable-equivalent (FTE) basis
    
    
    13,470
    
    
    
    13,377
    
    
    
    1Noninterest income
    
    
    3,035
    
    
    
    2,592
    
    
    
    17Provision for loan losses
    
    
    472
    
    
    
    302
    
    
    
    56Noninterest expense
    
    
    10,701
    
    
    
    10,915
    
    
    
    -2Net income
    
    
    3,514
    
    
    
    3,110
    
    
    
    13At Year-endLoans, net
    
    $
    254,073
    
    
    $
    229,825
    
    
    
    11
    %Assets
    
    
    350,270
    
    
    
    327,240
    
    
    
    7Deposits
    
    
    259,386
    
    
    
    260,178
    
    
    
    <-1Shareholders equity
    
    
    36,278
    
    
    
    35,070
    
    
    
    3Cash dividends declared
    
    
    0.72
    
    
    
    0.64
    
    
    
    13Book value
    
    
    14.82
    
    
    
    14.03
    
    
    
    6Market price
    
    
    17.75
    
    
    
    19.00
    
    
    
    -7Basic earnings per share
    
    
    1.42
    
    
    
    1.23
    
    
    
    15Diluted earnings per share
    
    
    1.42
    
    
    
    1.23
    
    
    
    15Financial PerformanceReturn on average assets
    
    
    1.07
    %
    
    
    0.97
    %Return on average equity
    
    
    9.82
    
    
    
    8.95Net interest margin
    
    
    4.31
    
    
    
    4.38Efficiency ratio
    
    
    64.90
    
    
    
    69.35Capital RatiosRisk-based capital:Tier 1
    
    
    15.30
    %
    
    
    16.50
    %Total
    
    
    16.40
    
    
    
    17.70Leverage
    
    
    11.00
    
    
    
    11.10
 CSB Bancorp, Inc. 2007




---



##### 



6 2007 LETTER TO SHAREHOLDERS
 Dear Fellow Shareholder
  2007 Financial Overview
    Investing in Facilities
  
   CSB Bancorp, Inc. 2007




---



##### 



Trust and Brokerage Services Continue to Grow
  The Economy
    CSB
Bancorp, Inc. 2007




---



##### 



Our Strategy
    
 CSB Bancorp, Inc. 2007




---



##### 



Why We Do What We Do
   Looking to the Future
    CSB
Bancorp, Inc. 2007




---



##### 



-s- Eddie L. Steiner
    
    
    
    -s- John R. WaltmanEddie L. Steiner
    
    
    
    John R. WaltmanPresident and Chief Executive Officer
    
    
    
    Chairman,
Board of Directors
 CSB Bancorp, Inc. 2007




---



##### 



2007 FINANCIAL REVIEW 6
 Introduction
    Forward-Looking Statements
  CSB Bancorp, Inc. 2007




---



##### 



6 2007 FINANCIAL REVIEW
 Selected Financial Data
  2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003(Dollars in thousands, except per share data)Statements of income:Total interest income
    
    $
    21,231
    
    
    $
    20,045
    
    
    $
    17,358
    
    
    $
    15,074
    
    
    $
    15,414Total interest expense
    
    
    7,904
    
    
    
    6,877
    
    
    
    4,812
    
    
    
    3,874
    
    
    
    4,631Net interest income
    
    
    13,326
    
    
    
    13,168
    
    
    
    12,546
    
    
    
    11,200
    
    
    
    10,783Provision (credit) for loan losses
    
    
    472
    
    
    
    302
    
    
    
    283
    
    
    
    423
    
    
    
    (51
    )Net interest income after provision (credit)
for loan losses
    
    
    12,854
    
    
    
    12,866
    
    
    
    12,263
    
    
    
    10,777
    
    
    
    10,834Noninterest income
    
    
    3,035
    
    
    
    2,592
    
    
    
    2,580
    
    
    
    2,680
    
    
    
    2,155Noninterest expenses
    
    
    10,701
    
    
    
    10,915
    
    
    
    10,803
    
    
    
    10,278
    
    
    
    10,799Income before income taxes
    
    
    5,188
    
    
    
    4,543
    
    
    
    4,041
    
    
    
    3,179
    
    
    
    2,190Income tax provision
    
    
    1,674
    
    
    
    1,433
    
    
    
    1,168
    
    
    
    653
    
    
    
    130Net income
    
    $
    3,514
    
    
    $
    3,110
    
    
    $
    2,873
    
    
    $
    2,526
    
    
    $
    2,060Per share of common stock:Basic income per share
    
    $
    1.42
    
    
    $
    1.23
    
    
    $
    1.09
    
    
    $
    0.96
    
    
    $
    0.78Diluted income per share
    
    
    1.42
    
    
    
    1.23
    
    
    
    1.09
    
    
    
    0.95
    
    
    
    0.78Dividends
    
    
    0.72
    
    
    
    0.64
    
    
    
    0.56
    
    
    
    0.52
    
    
    
    0.48Book value
    
    
    14.82
    
    
    
    14.03
    
    
    
    13.64
    
    
    
    13.69
    
    
    
    13.13Average basic common shares outstanding
    
    
    2,467,110
    
    
    
    2,526,914
    
    
    
    2,638,697
    
    
    
    2,644,582
    
    
    
    2,638,360Average diluted common shares outstanding
    
    
    2,467,812
    
    
    
    2,532,592
    
    
    
    2,642,301
    
    
    
    2,650,948
    
    
    
    2,641,887Year-end balances:Loans, net
    
    $
    254,073
    
    
    $
    229,825
    
    
    $
    212,574
    
    
    $
    215,510
    
    
    $
    210,796Securities
    
    
    74,526
    
    
    
    70,241
    
    
    
    81,220
    
    
    
    76,228
    
    
    
    67,773Total assets
    
    
    350,270
    
    
    
    327,240
    
    
    
    320,989
    
    
    
    317,340
    
    
    
    306,180Deposits
    
    
    259,386
    
    
    
    260,178
    
    
    
    255,403
    
    
    
    247,951
    
    
    
    248,958Borrowings
    
    
    53,329
    
    
    
    30,521
    
    
    
    29,485
    
    
    
    32,062
    
    
    
    21,372Shareholders equity
    
    
    36,278
    
    
    
    35,070
    
    
    
    35,170
    
    
    
    36,208
    
    
    
    34,718Average balances:Loans, net
    
    $
    239,405
    
    
    $
    222,952
    
    
    $
    218,187
    
    
    $
    214,330
    
    
    $
    206,685Securities
    
    
    66,966
    
    
    
    74,994
    
    
    
    71,866
    
    
    
    73,342
    
    
    
    70,027Total assets
    
    
    327,771
    
    
    
    319,749
    
    
    
    316,612
    
    
    
    312,534
    
    
    
    302,601Deposits
    
    
    253,221
    
    
    
    247,543
    
    
    
    249,007
    
    
    
    241,674
    
    
    
    236,525Borrowings
    
    
    37,278
    
    
    
    35,824
    
    
    
    30,083
    
    
    
    34,540
    
    
    
    30,981Shareholders equity
    
    
    35,772
    
    
    
    34,766
    
    
    
    36,290
    
    
    
    35,332
    
    
    
    34,360Selected ratios:Net interest margin
    
    
    4.31
    %
    
    
    4.38
    %
    
    
    4.23
    %
    
    
    3.83
    %
    
    
    3.81
    %Return on average total assets
    
    
    1.07
    
    
    
    0.97
    
    
    
    0.91
    
    
    
    0.81
    
    
    
    0.68Return on average shareholders equity
    
    
    9.82
    
    
    
    8.95
    
    
    
    7.92
    
    
    
    7.15
    
    
    
    6.00Average shareholders equity
as a percent of average total assets
    
    
    10.91
    
    
    
    10.87
    
    
    
    11.46
    
    
    
    11.31
    
    
    
    11.35Net loan
charge-offs as a percent of average loans
    
    
    .20
    
    
    
    0.06
    
    
    
    0.19
    
    
    
    0.14
    
    
    
    0.09Allowance for loan losses as a percent of
loans at year-end
    
    
    1.01
    
    
    
    1.12
    
    
    
    1.14
    
    
    
    1.18
    
    
    
    1.15Shareholders equity as a percent of
total year-end assets
    
    
    10.36
    
    
    
    10.72
    
    
    
    10.96
    
    
    
    11.41
    
    
    
    11.34Dividend payout ratio
    
    
    50.70
    
    
    
    51.89
    
    
    
    51.47
    
    
    
    54.44
    
    
    
    61.48
 CSB
Bancorp, Inc. 2007




---



##### 



2007 FINANCIAL REVIEW 6
 Results of Operations
 Net Income
   Net Interest Income
        CSB Bancorp, Inc. 2007




---



##### 



6 2007 FINANCIAL REVIEW
  Average Balances, Rates and Yields(Dollars in thousands)2007
    
    
    
    2006
    
    
    
    2005AVERAGE
    
    
    
    
    
    
    
    
    
    
    
    AVERAGE
    
    
    
    
    
    
    
    
    
    
    
    AVERAGEBALANCE(1)
    
    
    INTEREST
    
    
    RATE(2)
    
    
    
    BALANCE(1)
    
    
    INTEREST
    
    
    RATE(2)
    
    
    
    BALANCE(1)
    
    
    INTEREST
    
    
    RATE(2)Interest-earning assetsFederal funds sold
    
    $
    458
    
    
    $
    25
    
    
    
    5.44
    %
    
    
    $
    250
    
    
    $
    11
    
    
    
    4.28
    %
    
    
    $
    3,848
    
    
    $
    145
    
    
    
    3.77
    %Interest-earning deposits
    
    
    62
    
    
    
    2
    
    
    
    2.58
    
    
    
    
    18
    
    
    
    1
    
    
    
    9.44
    
    
    
    
    36
    
    
    
    1
    
    
    
    1.39Securities:Taxable
    
    
    61,673
    
    
    
    2,928
    
    
    
    4.75
    
    
    
    
    66,951
    
    
    
    3,006
    
    
    
    4.49
    
    
    
    
    57,930
    
    
    
    2,243
    
    
    
    3.87Tax exempt
    
    
    5,293
    
    
    
    251
    
    
    
    4.75
    
    
    
    
    8,043
    
    
    
    383
    
    
    
    4.76
    
    
    
    
    13,936
    
    
    
    625
    
    
    
    4.49Loans3
    
    
    241,979
    
    
    
    18,025
    
    
    
    7.45
    
    
    
    
    225,445
    
    
    
    16,644
    
    
    
    7.38
    
    
    
    
    220,655
    
    
    
    14,344
    
    
    
    6.50Total interest-earning assets
    
    
    309,465
    
    
    
    21,231
    
    
    
    6.86
    %
    
    
    
    300,707
    
    
    
    20,045
    
    
    
    6.67
    %
    
    
    
    296,405
    
    
    
    17,358
    
    
    
    5.86
    %Noninterest-earning assetsCash and due from banks
    
    
    10,980
    
    
    
    
    
    
    
    
    
    
    
    
    11,027
    
    
    
    
    
    
    
    
    
    
    
    
    11,821Bank premises and
equipment, net
    
    
    7,719
    
    
    
    
    
    
    
    
    
    
    
    
    7,864
    
    
    
    
    
    
    
    
    
    
    
    
    8,323Other assets
    
    
    2,181
    
    
    
    
    
    
    
    
    
    
    
    
    2,644
    
    
    
    
    
    
    
    
    
    
    
    
    2,531Allowance for loan losses
    
    
    (2,574
    )
    
    
    
    
    
    
    
    
    
    
    
    (2,493
    )
    
    
    
    
    
    
    
    
    
    
    
    (2,468
    )Total assets
    
    $
    327,771
    
    
    
    
    
    
    
    
    
    
    
    $
    319,749
    
    
    
    
    
    
    
    
    
    
    
    $
    316,612Interest-bearing liabilitiesDemand deposits
    
    $
    45,606
    
    
    
    257
    
    
    
    0.56
    %
    
    
    $
    46,096
    
    
    
    232
    
    
    
    0.50
    %
    
    
    $
    49,021
    
    
    
    192
    
    
    
    0.39
    %Savings deposits
    
    
    41,123
    
    
    
    511
    
    
    
    1.24
    
    
    
    
    41,528
    
    
    
    411
    
    
    
    0.99
    
    
    
    
    44,759
    
    
    
    357
    
    
    
    0.80Time deposits
    
    
    124,752
    
    
    
    5,585
    
    
    
    4.48
    
    
    
    
    120,981
    
    
    
    4,775
    
    
    
    3.95
    
    
    
    
    117,373
    
    
    
    3,579
    
    
    
    3.05Borrowed funds
    
    
    37,278
    
    
    
    1,552
    
    
    
    4.16
    
    
    
    
    35,824
    
    
    
    1,459
    
    
    
    4.07
    
    
    
    
    30,083
    
    
    
    684
    
    
    
    2.27Total interest-bearing liabilities
    
    
    248,759
    
    
    
    7,905
    
    
    
    3.18
    %
    
    
    
    244,429
    
    
    
    6,877
    
    
    
    2.81
    %
    
    
    
    241,236
    
    
    
    4,812
    
    
    
    1.99
    %Noninterest-bearing liabilities
and shareholders equityDemand deposits
    
    
    41,740
    
    
    
    
    
    
    
    
    
    
    
    
    38,938
    
    
    
    
    
    
    
    
    
    
    
    
    37,855Other liabilities
    
    
    1,500
    
    
    
    
    
    
    
    
    
    
    
    
    1,616
    
    
    
    
    
    
    
    
    
    
    
    
    1,231Shareholders equity
    
    
    35,772
    
    
    
    
    
    
    
    
    
    
    
    
    34,766
    
    
    
    
    
    
    
    
    
    
    
    
    36,290Total liabilities and equity
    
    $
    327,771
    
    
    
    
    
    
    
    
    
    
    
    $
    319,749
    
    
    
    
    
    
    
    
    
    
    
    $
    316,612Net interest income
    
    
    
    
    
    $
    13,326
    
    
    
    
    
    
    
    
    
    
    
    $
    13,168
    
    
    
    
    
    
    
    
    
    
    
    $
    12,546Net interest margin
    
    
    
    
    
    
    
    
    
    
    4.31
    %
    
    
    
    
    
    
    
    
    
    
    
    4.38
    %
    
    
    
    
    
    
    
    
    
    
    
    4.23
    %Net interest spread
    
    
    
    
    
    
    
    
    
    
    3.68
    %
    
    
    
    
    
    
    
    
    
    
    
    3.86
    %
    
    
    
    
    
    
    
    
    
    
    
    3.87
    %
 
 (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. CSB
Bancorp, Inc. 2007




---



##### 



2007 FINANCIAL REVIEW 6
 Rate/Volume Analysis of Changes In Income and Expense (1)(Dollars in thousands)2007 v. 2006
    
    
    
    2006 v. 2005CHANGE IN
    
    
    
    
    
    
    
    
    
    
    
    CHANGE ININCOME/
    
    
    VOLUME
    
    
    RATE
    
    
    
    INCOME/
    
    
    VOLUME
    
    
    RATEEXPENSE
    
    
    EFFECT
    
    
    EFFECT
    
    
    
    EXPENSE
    
    
    EFFECT
    
    
    EFFECTInterest IncomeFederal funds sold
    
    $
    14
    
    
    $
    11
    
    
    $
    3
    
    
    
    $
    (134
    )
    
    $
    (154
    )
    
    $
    20Interest-earning deposits
    
    
    1
    
    
    
    2
    
    
    
    (1
    )
    
    
    
    1
    
    
    
    (2
    )
    
    
    3Securities:Taxable
    
    
    (78
    )
    
    
    (251
    )
    
    
    173
    
    
    
    
    763
    
    
    
    405
    
    
    
    358Tax exempt
    
    
    (132
    )
    
    
    (131
    )
    
    
    (1
    )
    
    
    
    (243
    )
    
    
    (281
    )
    
    
    38Loans
    
    
    1,381
    
    
    
    1,231
    
    
    
    150
    
    
    
    
    2,300
    
    
    
    354
    
    
    
    1,946Total interest income
    
    
    1,186
    
    
    
    862
    
    
    
    324
    
    
    
    
    2,687
    
    
    
    322
    
    
    
    2,365Interest ExpenseDemand deposits
    
    
    25
    
    
    
    (3
    )
    
    
    28
    
    
    
    
    39
    
    
    
    (15
    )
    
    
    54Savings deposits
    
    
    100
    
    
    
    (5
    )
    
    
    105
    
    
    
    
    54
    
    
    
    (32
    )
    
    
    86Time deposits
    
    
    810
    
    
    
    169
    
    
    
    641
    
    
    
    
    1,196
    
    
    
    142
    
    
    
    1,054Other borrowed funds
    
    
    93
    
    
    
    61
    
    
    
    32
    
    
    
    
    776
    
    
    
    234
    
    
    
    542Total interest expense
    
    
    1,028
    
    
    
    222
    
    
    
    806
    
    
    
    
    2,065
    
    
    
    329
    
    
    
    1,736Net interest income
    
    $
    158
    
    
    $
    640
    
    
    $
    (482
    )
    
    
    $
    622
    
    
    $
    (7
    )
    
    $
    629
 
 (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.  (Dollars in thousands)
    
    2007
    
    
    2006
    
    
    2005Net interest income
    
    $
    13,326
    
    
    $
    13,167
    
    
    $
    12,546Taxable equivalent adjustment(1)
    
    
    144
    
    
    
    210
    
    
    
    333Net interest income  fully taxable equivalent
    
    $
    13,470
    
    
    $
    13,377
    
    
    $
    12,879Net interest yield
    
    
    4.31
    %
    
    
    4.38
    %
    
    
    4.23
    %Taxable equivalent adjustment(1)
    
    
    .04
    
    
    
    .07
    
    
    
    .11Net interest yield  taxable equivalent
    
    
    4.35
    %
    
    
    4.45
    %
    
    
    4.35
    %
 
 (1)
    
    Taxable equivalent adjustments have been computed assuming a 34% tax rate. Provision for Loan Losses
  CSB
Bancorp, Inc. 2007




---



##### 



6 2007 FINANCIAL REVIEW
 Noninterest Income
 Year Ended December 31(Dollars in thousands)Change From 2006
    
    Change From 20052007
    
    AMOUNT
    
    %
    
    2006
    
    AMOUNT
    
    %
    
    2005Service charges on deposit accounts
    
    $
    1,231
    
    
    $
    (48
    )
    
    
    (3.8
    )%
    
    $
    1,279
    
    
    $
    242
    
    
    
    23.3
    %
    
    $
    1,037Trust services
    
    
    731
    
    
    
    191
    
    
    
    35.4
    
    
    
    540
    
    
    
    56
    
    
    
    11.6
    
    
    
    484Debit card interchange fees
    
    
    276
    
    
    
    65
    
    
    
    30.8
    
    
    
    211
    
    
    
    50
    
    
    
    31.1
    
    
    
    161Credit card fee income
    
    
    262
    
    
    
    (29
    )
    
    
    (10.0
    )
    
    
    291
    
    
    
    13
    
    
    
    4.7
    
    
    
    278Insurance recovery
    
    
    187
    
    
    
    187
    
    
    
    N.M.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Securities gain (loss)
    
    
    17
    
    
    
    74
    
    
    
    N.M.
    
    
    
    (57
    )
    
    
    (304
    )
    
    
    N.M.
    
    
    
    247Gain on sale of loans
    
    
    18
    
    
    
    6
    
    
    
    50.0
    
    
    
    12
    
    
    
    (12
    )
    
    
    (50.0
    )
    
    
    24Gain (loss) sale of other real estate
    
    
    (1
    )
    
    
    25
    
    
    
    N.M.
    
    
    
    (26
    )
    
    
    (36
    )
    
    
    N.M.
    
    
    
    10Other
    
    
    314
    
    
    
    (28
    )
    
    
    (8.2
    )
    
    
    342
    
    
    
    2
    
    
    
    0.6
    
    
    
    340Total noninterest income
    
    $
    3,035
    
    
    
    443
    
    
    
    17.1
    %
    
    $
    2,592
    
    
    
    11
    
    
    
    0.4
    %
    
    $
    2,581
 
 N.M., not a meaningful value    CSB
Bancorp, Inc. 2007




---



##### 



2007 FINANCIAL REVIEW 6
 Noninterest Expenses
 Year Ended December 31(Dollars in thousands)Change from 2006
    Change from 20052007
    
    AMOUNT
    
    %
    
    2006
    
    AMOUNT
    
    %
    
    2005Salaries and employee benefits
    
    $
    5,854
    
    
    $
    (32
    )
    
    
    0.5
    %
    
    $
    5,886
    
    
    $
    215
    
    
    
    3.8
    %
    
    $
    5,671Occupancy expense
    
    
    733
    
    
    
    47
    
    
    
    6.9
    
    
    
    686
    
    
    
    9
    
    
    
    1.3
    
    
    
    677Equipment expense
    
    
    504
    
    
    
    6
    
    
    
    1.2
    
    
    
    498
    
    
    
    (26
    )
    
    
    (5.0
    )
    
    
    524Professional and directors fees
    
    
    580
    
    
    
    (79
    )
    
    
    (12.0
    )
    
    
    659
    
    
    
    (18
    )
    
    
    (2.7
    )
    
    
    677Franchise tax expense
    
    
    417
    
    
    
    (13
    )
    
    
    3.0
    
    
    
    430
    
    
    
    2
    
    
    
    0.5
    
    
    
    428Marketing and public relations
    
    
    373
    
    
    
    39
    
    
    
    11.7
    
    
    
    334
    
    
    
    32
    
    
    
    10.6
    
    
    
    302Telecommunications
    
    
    225
    
    
    
    4
    
    
    
    1.8
    
    
    
    221
    
    
    
    (54
    )
    
    
    (19.6
    )
    
    
    275Cash irregularity
    
    
    
    
    
    
    (237
    )
    
    
    N.M.
    
    
    
    237
    
    
    
    237
    
    
    
    N.M.
    
    
    
    Other
    
    
    2,015
    
    
    
    51
    
    
    
    2.6
    
    
    
    1,964
    
    
    
    (285
    )
    
    
    (12.7
    )
    
    
    2,249Total noninterest expenses
    
    $
    10,701
    
    
    $
    (214
    )
    
    
    (2.0
    )%
    
    $
    10,915
    
    
    
    112
    
    
    
    1.0
    %
    
    $
    10,803
 
 N.M., not a meaningful value   Income Taxes
  CSB Bancorp, Inc. 2007




---



##### 



6 2007 FINANCIAL REVIEW
 Financial Condition
  Securities
    Loans
     CSB
Bancorp, Inc. 2007




---



##### 



2007 FINANCIAL REVIEW 6
 Allowance for Loan Losses
     Other Assets
  Deposits
  Other Funding Sources
  CSB
Bancorp, Inc. 2007




---



##### 



6 2007 FINANCIAL REVIEW
  Capital Resources
    Liquidity
   Quantitative and Qualitative Disclosures About Market Risk
  CSB Bancorp, Inc. 2007




---



##### 



2007 FINANCIAL REVIEW 6
    Net Interest Income at Risk
 December 31, 2007
    
    December 31, 2006(Dollars in Thousands)
    
    (Dollars in Thousands)CHANGE IN
    
    
    
    
    
    
    
    
    
    CHANGE ININTEREST RATES
    
    NET INTEREST
    
    DOLLAR
    
    PERCENTAGE
    
    BOARD POLICY
    
    INTEREST RATES
    
    NET INTEREST
    
    DOLLAR
    
    PERCENTAGE
    
    BOARD POLICY(BASIS POINTS)
    
    INCOME
    
    CHANGE
    
    CHANGE
    
    LIMITS
    
    (BASIS POINTS)
    
    INCOME
    
    CHANGE
    
    CHANGE
    
    LIMITS+200
    
    $14,682
    
    $506
    
    3.6%
    
    +/ 15.0%
    
    +200
    
    $14,165
    
    $682
    
    5.1%
    
    +/ 15.0%+100
    
    14,457
    
    281
    
    2.0
    
    +/ 10.0
    
    +100
    
    13,767
    
    284
    
    2.1
    
    +/ 10.00
    
    14,176
    
    
    
    
    
    
    
    0
    
    13,483
    
    0
    
    0.0100
    
    13,988
    
    (188)
    
    (1.3)
    
    +/ 10.0
    
    100
    
    13,290
    
    (193)
    
    (1.4)
    
    +/ 10.0200
    
    13,646
    
    (530)
    
    (3.7)
    
    +/ 15.0
    
    200
    
    12,937
    
    (546)
    
    (4.1)
    
    +/ 15.0
  Economic
Value of Equity at Risk
 Economic Value of Equity at Risk (%)
 Basis point change scenario
    
    
    200
    
    
    
    100
    
    
    
    +100
    
    
    
    +200Board policy limits
    
    
    +/ 20
    %
    
    
    +/15
    %
    
    
    +/15
    %
    
    
    +/20
    %December 31, 2007
    
    
    +5.2
    %
    
    
    +3.1
    %
    
    
    5.6
    %
    
    
    17.3
    %December 31, 2006
    
    
    +7.1
    %
    
    
    +3.8
    %
    
    
    5.2
    %
    
    
    11.2
    %
  Significant Assumptions and Other Considerations
  CSB
Bancorp, Inc. 2007




---



##### 



6 2007 FINANCIAL REVIEW
  Fair Value of Financial Instruments
  Off-Balance Sheet Arrangements, Contractual Obligations,
and Contingent Liabilities and Commitments
  Amount of Commitment to Expire Per Period(Dollars in Thousands)TOTAL
    
    
    LESS THAN 1
    
    
    13
    
    
    35
    
    
    OVER 5TYPE OF COMMITMENT
    
    AMOUNT
    
    
    YEAR
    
    
    YEARS
    
    
    YEARS
    
    
    YEARSCommercial lines-of-credit
    
    $
    24,823
    
    
    $
    24,461
    
    
    $
    362Real estate lines-of-credit
    
    
    20,147
    
    
    
    1,436
    
    
    
    449
    
    
    $
    2,366
    
    
    $
    15,896Consumer lines-of-credit
    
    
    1,085
    
    
    
    1,085Credit card lines-of-credit
    
    
    12,413
    
    
    
    12,413Overdraft Privilege
    
    
    5,381
    
    
    
    5,381Letters of credit
    
    
    1,310
    
    
    
    1,281
    
    
    
    29Total Commitments
    
    $
    65,159
    
    
    $
    46,057
    
    
    $
    840
    
    
    $
    2,366
    
    
    $
    15,896
  CSB Bancorp, Inc. 2007




---



##### 



2007 FINANCIAL REVIEW 6
  Payment Due by Period(Dollars in Thousands)TOTAL
    
    
    LESS THAN 1
    
    
    13
    
    
    35
    
    
    OVER 5Contractual Obligations
    
    AMOUNT
    
    
    YEAR
    
    
    YEARS
    
    
    YEARS
    
    
    YEARSTotal time deposits
    
    $
    123,397
    
    
    $
    104,038
    
    
    $
    13,100
    
    
    $
    6,226
    
    
    $
    33Short-term borrowings
    
    
    27,305
    
    
    
    27,305Other borrowings
    
    
    26,024
    
    
    
    417
    
    
    
    12,692
    
    
    
    435
    
    
    
    12,480Capital leasesOperating leases
    
    
    403
    
    
    
    112
    
    
    
    201
    
    
    
    90Unconditional purchase obligationsOtherTotal Obligations
    
    $
    177,129
    
    
    $
    131,872
    
    
    $
    25,993
    
    
    $
    6,751
    
    
    $
    12,513
  Recently Issued Accounting Pronouncements
 Fair Value Measurements,
 The Fair Value Option for Financial Assets and
Financial Liabilities  including an amendment of FASB Statement No. 115, Fair Value
Measurements.
 Critical Accounting Policies
  CSB Bancorp, Inc. 2007




---



##### 



6 2007 FINANCIAL REVIEW
   Impact of Inflation and Changing Prices
  Common Stock and Shareholder Information
  DIVIDENDSQUARTER ENDED
    
    HIGH
    
    LOW
    
    DECLAREDMarch 31, 2007
    
    $
    19.05
    
    
    $
    17.50
    
    
    $
    443,320June 30, 2007
    
    
    18.25
    
    
    
    17.42
    
    
    
    443,320September 30, 2007
    
    
    19.00
    
    
    
    15.95
    
    
    
    443,320December 31, 2007
    
    
    17.75
    
    
    
    15.40
    
    
    
    441,531March 31, 2006
    
    $
    21.25
    
    
    $
    20.50
    
    
    $
    410,785June 30, 2006
    
    
    20.87
    
    
    
    20.00
    
    
    
    403,158September 30, 2006
    
    
    20.40
    
    
    
    18.70
    
    
    
    399,916December 31, 2006
    
    
    20.25
    
    
    
    18.00
    
    
    
    399,888
  CSB Bancorp, Inc. 2007




---



##### 



Report on Managements Assessment of Internal Control Over Financial Reporting
    -s- EDDIE L. STEINER
    
    -s- PAULA J. MEILEREddie L. Steiner
    
    Paula J. MeilerPresident, Chief Executive Officer
    
    Senior Vice President, Chief Financial Officer
 REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM 6
    
    (SNODGRASS LOGO)The Board of Directors and Shareholders
CSB Bancorp, Inc.
    Report on Managements Assessment of Internal Control Over Financial Reporting
 Wexford, Pennsylvania
March 5, 2008
 CSB Bancorp, Inc. 2007




---



##### 



CONSOLIDATED BALANCE SHEETS 6  December 31, 2007 & 2006
 2007
    
    
    2006ASSETSCash and cash equivalentsCash and due from banks
    
    $
    12,111,807
    
    
    $
    12,643,440Interest-earning deposits in other banks
    
    
    81,555
    
    
    
    9,748Federal funds sold
    
    
    
    
    
    
    5,000,000Total cash and cash equivalents
    
    
    12,193,362
    
    
    
    17,653,188SecuritiesAvailable-for-sale, at fair value
    
    
    71,419,830
    
    
    
    67,135,126Restricted stock, at cost
    
    
    3,105,900
    
    
    
    3,105,900Total securities
    
    
    74,525,730
    
    
    
    70,241,026Loans
    
    
    256,659,059
    
    
    
    232,431,938Less allowance for loan losses
    
    
    2,585,901
    
    
    
    2,607,118Net loans
    
    
    254,073,158
    
    
    
    229,824,820Premises and equipment, net
    
    
    7,273,238
    
    
    
    7,390,182Accrued interest receivable and other assets
    
    
    2,204,257
    
    
    
    2,130,631Total Assets
    
    $
    350,269,745
    
    
    $
    327,239,847LIABILITIES AND SHAREHOLDERS EQUITYLiabilitiesDeposits:Noninterest-bearing
    
    $
    46,038,976
    
    
    $
    44,455,131Interest-bearing
    
    
    213,347,066
    
    
    
    215,722,541Total deposits
    
    
    259,386,042
    
    
    
    260,177,672Short-term borrowings
    
    
    27,305,157
    
    
    
    28,022,077Other borrowings
    
    
    26,023,888
    
    
    
    2,499,399Accrued interest payable and other liabilities
    
    
    1,276,610
    
    
    
    1,470,379Total liabilities
    
    
    313,991,697
    
    
    
    292,169,527Shareholders 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
    
    
    6,452,319
    
    
    
    6,427,765Retained earnings
    
    
    17,990,445
    
    
    
    16,248,608Treasury stock at cost  220,162 shares in 2007
and 168,605 shares in 2006
    
    
    (4,599,282
    )
    
    
    (3,696,102
    )Accumulated other comprehensive loss
    
    
    (239,101
    )
    
    
    (583,618
    )Total shareholders equity
    
    
    36,278,048
    
    
    
    35,070,320Total Liabilities and Shareholders Equity
    
    $
    350,269,745
    
    
    $
    327,239,847
 These consolidated financial statements should be read only in connection with the accompanying
summary of significant accounting policies and notes to consolidated financial statements.
 CSB Bancorp, Inc. 2007




---



##### 



CONSOLIDATED STATEMENTS OF INCOME 6  Years Ended December 31, 2007, 2006 & 2005
 2007
    
    
    2006
    
    
    2005INTEREST AND DIVIDEND INCOMELoans, including fees
    
    $
    18,025,190
    
    
    $
    16,643,728
    
    
    $
    14,343,888Taxable securities
    
    
    2,927,840
    
    
    
    3,006,055
    
    
    
    2,243,081Nontaxable securities
    
    
    251,551
    
    
    
    382,479
    
    
    
    624,911Other
    
    
    26,540
    
    
    
    12,490
    
    
    
    145,395Total interest and dividend income
    
    
    21,231,121
    
    
    
    20,044,752
    
    
    
    17,357,275INTEREST EXPENSEDeposits
    
    
    6,352,732
    
    
    
    5,418,616
    
    
    
    4,128,130Short-term borrowings
    
    
    1,185,377
    
    
    
    1,265,850
    
    
    
    331,540Other borrowings
    
    
    366,630
    
    
    
    192,825
    
    
    
    352,026Total interest expense
    
    
    7,904,739
    
    
    
    6,877,291
    
    
    
    4,811,696NET INTEREST INCOME
    
    
    13,326,382
    
    
    
    13,167,461
    
    
    
    12,545,579PROVISION FOR LOAN LOSSES
    
    
    472,100
    
    
    
    301,667
    
    
    
    282,664Net interest income, after provision
for loan losses
    
    
    12,854,282
    
    
    
    12,865,794
    
    
    
    12,262,915NONINTEREST INCOMEService charges on deposit accounts
    
    
    1,231,020
    
    
    
    1,278,842
    
    
    
    1,037,377Trust services
    
    
    730,715
    
    
    
    540,299
    
    
    
    484,468Debit card interchange fees
    
    
    276,467
    
    
    
    210,615
    
    
    
    160,509Credit card other fee income
    
    
    261,784
    
    
    
    290,778
    
    
    
    277,990Insurance recovery
    
    
    186,526
    
    
    
    
    
    
    
    Securities gain (loss)
    
    
    16,830
    
    
    
    (56,800
    )
    
    
    247,047Gain on sale of loans, net
    
    
    18,348
    
    
    
    12,078
    
    
    
    23,502Gain (loss) on sale of other real estate owned, net
    
    
    (994
    )
    
    
    (25,640
    )
    
    
    10,000Other
    
    
    313,929
    
    
    
    341,754
    
    
    
    339,596Total noninterest income
    
    
    3,034,625
    
    
    
    2,591,926
    
    
    
    2,580,489NONINTEREST EXPENSESSalaries and employee benefits
    
    
    5,853,523
    
    
    
    5,885,857
    
    
    
    5,671,149Occupancy expense
    
    
    732,850
    
    
    
    685,728
    
    
    
    677,067Equipment expense
    
    
    504,356
    
    
    
    498,517
    
    
    
    524,112Professional and director fees
    
    
    579,923
    
    
    
    658,843
    
    
    
    677,252Franchise tax expense
    
    
    416,712
    
    
    
    430,050
    
    
    
    427,435Marketing and public relations
    
    
    372,902
    
    
    
    333,753
    
    
    
    302,331Cash irregularity
    
    
    
    
    
    
    236,547
    
    
    
    Telecommunications
    
    
    225,284
    
    
    
    221,223
    
    
    
    274,618Other expenses
    
    
    2,015,243
    
    
    
    1,964,097
    
    
    
    2,248,801Total noninterest expenses
    
    
    10,700,793
    
    
    
    10,914,615
    
    
    
    10,802,765Income before income taxes
    
    
    5,188,114
    
    
    
    4,543,105
    
    
    
    4,040,639FEDERAL INCOME TAX PROVISION
    
    
    1,674,200
    
    
    
    1,433,000
    
    
    
    1,168,000NET INCOME
    
    $
    3,513,914
    
    
    $
    3,110,105
    
    
    $
    2,872,639NET INCOME PER SHAREBasic
    
    $
    1.42
    
    
    $
    1.23
    
    
    $
    1.09Diluted
    
    $
    1.42
    
    
    $
    1.23
    
    
    $
    1.09
 These consolidated financial statements should be read only in connection with the accompanying
summary of significant accounting policies and notes to consolidated financial statements.
 CSB Bancorp, Inc. 2007




---



##### 



CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY 6  Years Ended December 31, 2007, 2006 & 2005
 ADDITIONAL
    
    
    
    
    
    
    
    
    
    
    ACCUMULATED OTHERPAID-IN
    
    
    RETAINED
    
    
    TREASURY
    
    
    COMPREHENSIVECOMMON STOCK
    
    
    CAPITAL
    
    
    EARNINGS
    
    
    STOCK
    
    
    INCOME (LOSS)
    
    
    TOTALBALANCE 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 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
    )
    
    
    35,170,259Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    3,110,105
    
    
    
    
    
    
    
    
    
    
    
    3,110,105Change in net unrealized loss,
net of reclassification
adjustments and related
income tax benefit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (731
    )
    
    
    (731
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,109,374Stock-based compensation expense
    
    
    
    
    
    
    13,850
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,850Purchase of 79,318 treasury shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,609,416
    )
    
    
    
    
    
    
    (1,609,416
    )Cash dividends declared,
$.64 per share
    
    
    
    
    
    
    
    
    
    
    (1,613,747
    )
    
    
    
    
    
    
    
    
    
    
    (1,613,747
    )BALANCE AT
DECEMBER 31, 2006
    
    
    16,673,667
    
    
    
    6,427,765
    
    
    
    16,248,608
    
    
    
    (3,696,102
    )
    
    
    (583,618
    )
    
    
    35,070,320Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    3,513,914
    
    
    
    
    
    
    
    
    
    
    
    3,513,914Change in net unrealized gain,
net of reclassification
adjustments and related
income tax provision
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    344,517
    
    
    
    344,517Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    38,928,751Stock-based compensation expense
    
    
    
    
    
    
    24,554
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24,554Issuance of 40 shares from treasury
    
    
    
    
    
    
    
    
    
    
    (586
    )
    
    
    1,230
    
    
    
    
    
    
    
    644Purchase of 51,597 treasury shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (904,410
    )
    
    
    
    
    
    
    (904,410
    )Cash dividends declared,
$.72 per share
    
    
    
    
    
    
    
    
    
    
    (1,771,491
    )
    
    
    
    
    
    
    
    
    
    
    (1,771,491
    )BALANCE AT
DECEMBER 31, 2007
    
    $
    16,673,667
    
    
    $
    6,452,319
    
    
    $
    17,990,445
    
    
    $
    (4,599,282
    )
    
    $
    (239,101
    )
    
    $
    36,278,048
 These consolidated financial statements should be read only in connection with the accompanying
summary of significant accounting policies and notes to consolidated financial statements.
 CSB Bancorp, Inc. 2007




---



##### 



CONSOLIDATED STATEMENTS OF CASH FLOWS 6  Years Ended December 31, 2007, 2006 & 2005
 2007
    
    
    2006
    
    
    2005CASH FLOWS FROM OPERATING ACTIVITIESNet income
    
    $
    3,513,914
    
    
    $
    3,110,105
    
    
    $
    2,872,639Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation and amortization of
premises, equipment and software
    
    
    685,832
    
    
    
    692,461
    
    
    
    758,310Deferred income taxes
    
    
    (131,300
    )
    
    
    198,675
    
    
    
    408,837Provision for loan losses
    
    
    472,100
    
    
    
    301,667
    
    
    
    282,664Gain on sale of loans, net
    
    
    (18,348
    )
    
    
    (12,078
    )
    
    
    (23,502
    )Securities (gain) loss
    
    
    (16,830
    )
    
    
    56,800
    
    
    
    (247,047
    )(Gain) loss on sale of other real estate owned, net
    
    
    994
    
    
    
    25,640
    
    
    
    (10,000
    )Security amortization, net of accretion
    
    
    26,141
    
    
    
    47,328
    
    
    
    83,699Federal Home Loan Bank stock dividends
    
    
    
    
    
    
    (158,900
    )
    
    
    (156,600
    )Secondary market loan sale proceeds
    
    
    1,474,148
    
    
    
    1,231,578
    
    
    
    2,868,967Originations of secondary market loans
held-for-sale
    
    
    (1,455,800
    )
    
    
    (1,219,500
    )
    
    
    (2,845,465
    )Stock compensation expense
    
    
    24,554
    
    
    
    13,850
    
    
    
    Effects of changes in operating assets
and liabilities:Net deferred loan (fees) costs
    
    
    7,495
    
    
    
    21,130
    
    
    
    (39,536
    )Accrued interest receivable
    
    
    4,717
    
    
    
    (82,270
    )
    
    
    (201,106
    )Accrued interest payable
    
    
    24,910
    
    
    
    106,691
    
    
    
    41,649Other assets and liabilities
    
    
    (317,533
    )
    
    
    485,802
    
    
    
    125,107Net cash provided by operating activities
    
    $
    4,294,994
    
    
    $
    4,818,979
    
    
    $
    3,918,616CASH FLOWS FROM INVESTING ACTIVITIESSecurities available-for-sale:Proceeds from maturities and repayments
    
    $
    15,634,028
    
    
    $
    12,867,830
    
    
    $
    15,056,944Proceeds from sale
    
    
    
    
    
    
    3,943,200
    
    
    
    5,094,640Purchases
    
    
    (19,406,047
    )
    
    
    (5,778,145
    )
    
    
    (26,295,553
    )Loan originations, net of repayments
    
    
    (25,027,508
    )
    
    
    (17,606,716
    )
    
    
    (2,067,227
    )Proceeds from sale of other real estate
    
    
    196,881
    
    
    
    454,000
    
    
    
    195,000Property, equipment and software acquisitions
    
    
    (492,856
    )
    
    
    (283,749
    )
    
    
    (624,692
    )Net cash used in investing activities
    
    $
    (29,095,502
    )
    
    $
    (6,403,580
    )
    
    $
    (4,506,434
    )
 These consolidated financial statements should be read only in connection with the accompanying
summary of significant accounting policies and notes to consolidated financial statements.
 CSB Bancorp, Inc. 2007




---



##### 



6 CONSOLIDATED STATEMENTS OF CASH FLOWS
 2007
    
    
    2006
    
    
    2005CASH FLOWS FROM FINANCING ACTIVITIESNet change in deposits
    
    $
    (791,630
    )
    
    $
    4,774,955
    
    
    $
    7,451,998Net change in short-term borrowings
    
    
    (300,000
    )
    
    
    
    
    
    
    5,000,000Net change in securities sold under
repurchase agreements
    
    
    (416,920
    )
    
    
    6,604,461
    
    
    
    3,101,143Federal Home Loan Bank borrowings:Proceeds
    
    
    24,000,000
    
    
    
    
    
    
    
    Repayments
    
    
    (475,511
    )
    
    
    (5,568,441
    )
    
    
    (10,667,396
    )Purchase of treasury shares
    
    
    (904,410
    )
    
    
    (1,609,416
    )
    
    
    (1,459,752
    )Issuance of treasury shares
    
    
    644
    
    
    
    
    
    
    
    Cash dividends paid
    
    
    (1,771,491
    )
    
    
    (1,613,747
    )
    
    
    (1,822,491
    )Net cash provided by financing activities
    
    $
    19,340,682
    
    
    $
    2,587,812
    
    
    $
    1,593,502NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
    
    
    (5,459,826
    )
    
    
    1,003,212
    
    
    
    1,005,684CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR
    
    
    17,653,188
    
    
    
    16,649,976
    
    
    
    15,644,292CASH AND CASH EQUIVALENTS
AT END OF YEAR
    
    $
    12,193,362
    
    
    $
    17,653,188
    
    
    $
    16,649,976SUPPLEMENTAL DISCLOSURESCash paid during the year for:Interest
    
    $
    7,879,829
    
    
    $
    6,770,600
    
    
    $
    4,770,048Income taxes
    
    
    2,065,000
    
    
    
    965,000
    
    
    
    665,000Noncash investing activities:Transfer of loans to other real
estate owned
    
    $
    299,575
    
    
    $
    39,640
    
    
    $
    625,000
 These consolidated financial statements should be read only in connection with the accompanying
summary of significant accounting policies and notes to consolidated financial statements.
 CSB Bancorp, Inc. 2007




---



##### 



SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 6
    Use of Estimates in Preparing Financial Statements
  Principles of Consolidation
   Cash and Cash Equivalents
  Cash Reserve Requirements
  Securities
     CSB Bancorp, Inc. 2007




---



##### 



6 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Loans
   Allowance for Loan Losses
     Other Real Estate Owned
  Premises and Equipment
  CSB Bancorp, Inc. 2007




---



##### 



SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 6
 Repurchase Agreements
  Advertising Costs
  Federal Income Taxes
   Stock-Based Compensation
 Share-Based Payment
  Share-Based Payment
 2005Net income as reported
    
    $
    2,872,639Pro forma net income
    
    
    2,867,223Basic earnings per share as reported
    
    
    1.09Pro forma basic earnings per share
    
    
    1.09Diluted earnings per share as reported
    
    
    1.09Pro forma diluted earnings per share
    
    
    1.09
 CSB
Bancorp, Inc. 2007




---



##### 



6 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  2007
    
    2006
    
    2005Risk-free interest rate
    
    n/a
    
    4.57%
    
    
    n/aDividend yield
    
    
    
    3.56%Volatility
    
    
    
    9.00%Expected option life
    
    
    
    3.0 yrs.
    Comprehensive Income
  Transfers of Financial Assets
  Per Share Data
  CSB Bancorp, Inc. 2007




---



##### 



SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 6
  2007
    
    2006
    
    2005Weighted average common shares outstanding
    
    
    2,667,786
    
    
    
    2,667,786
    
    
    
    2,667,786Average treasury shares
    
    
    (200,676
    )
    
    
    (140,872
    )
    
    
    (29,089
    )Total weighted average common
shares outstanding (basic)
    
    
    2,467,110
    
    
    
    2,526,914
    
    
    
    2,638,697Dilutive effect of assumed exercise of stock options
    
    
    702
    
    
    
    5,678
    
    
    
    3,604Weighted average common shares
outstanding (diluted)
    
    
    2,467,812
    
    
    
    2,532,592
    
    
    
    2,642,301
   Recently Issued Accounting Pronouncements
 Fair Value Measurements,
 The Fair Value Option for Financial Assets and
Financial Liabilities  including an amendment of FASB Statement No. 115, Fair Value
Measurements.
 Reclassification of Comparative Amounts
  CSB Bancorp, Inc. 2007




---



##### 



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6
 Note 1  Securities
  GROSS
    
    
    GROSSUNREALIZED
    
    
    UNREALIZED
    
    
    FAIRDecember 31, 2007
    
    AMORTIZED COST
    
    
    GAINS
    
    
    LOSSES
    
    
    VALUEAvailable-for-sale:U.S. Treasury security
    
    $
    99,944
    
    
    $
    1,704
    
    
    $
    
    
    
    $
    101,648Obligations of U.S. Government
corporations and agencies
    
    
    25,498,979
    
    
    
    18,190
    
    
    
    7,904
    
    
    
    25,509,265Mortgage-backed securities
    
    
    42,682,972
    
    
    
    15,639
    
    
    
    333,666
    
    
    
    42,364,945Obligations of states and
political subdivisions
    
    
    3,098,457
    
    
    
    60,088
    
    
    
    
    
    
    
    3,158,545Total debt securities
    
    
    71,380,352
    
    
    
    95,621
    
    
    
    341,570
    
    
    
    71,134,403Equity securities
    
    
    401,752
    
    
    
    665
    
    
    
    116,990
    
    
    
    285,427Total available-for-sale
    
    
    71,782,104
    
    
    
    96,286
    
    
    
    458,560
    
    
    
    71,419,830Restricted stock
    
    
    3,105,900
    
    
    
    
    
    
    
    
    
    
    
    3,105,900Total securities
    
    $
    74,888,004
    
    
    $
    96,286
    
    
    $
    458,560
    
    
    $
    74,525,730December 31, 2006Available-for-sale:U.S. Treasury security
    
    $
    99,992
    
    
    $
    
    
    
    $
    172
    
    
    $
    99,820Obligations of U.S. Government
corporations and agencies
    
    
    33,493,189
    
    
    
    
    
    
    
    576,494
    
    
    
    32,916,695Mortgage-backed securities
    
    
    28,453,336
    
    
    
    591
    
    
    
    405,963
    
    
    
    28,047,964Obligations of states and
political subdivisions
    
    
    5,666,915
    
    
    
    103,482
    
    
    
    1,103
    
    
    
    5,769,294Total debt securities
    
    
    67,713,432
    
    
    
    104,073
    
    
    
    983,732
    
    
    
    66,833,773Equity securities
    
    
    305,965
    
    
    
    8,194
    
    
    
    12,806
    
    
    
    301,353Total available-for-sale
    
    
    68,019,397
    
    
    
    112,267
    
    
    
    996,538
    
    
    
    67,135,126Restricted stock
    
    
    3,105,900
    
    
    
    
    
    
    
    
    
    
    
    3,105,900Total securities
    
    $
    71,125,297
    
    
    $
    112,267
    
    
    $
    996,538
    
    
    $
    70,241,026
  AMORTIZED
    
    
    FAIRCOST
    
    
    VALUEAvailable-for-sale:Due in one year or less
    
    $
    3,579,935
    
    
    $
    3,604,660Due after one through five years
    
    
    25,739,772
    
    
    
    25,775,551Due after five years through ten years
    
    
    3,131,836
    
    
    
    3,091,771Due after ten years
    
    
    38,928,809
    
    
    
    38,662,421Total available-for-sale
    
    $
    71,380,352
    
    
    $
    71,134,403
 CSB Bancorp, Inc. 2007




---



##### 



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6
 Note 1  Securities (cont.)
     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
    
    
    VALUE2007Obligations of U.S.
Government
corporations and agencies
    
    $
    
    
    
    $
    
    
    
    $
    7,904
    
    
    $
    14,491,455
    
    
    $
    7,904
    
    
    $
    14,491,455Mortgage-backed securities
    
    
    112,399
    
    
    
    21,664,006
    
    
    
    221,267
    
    
    
    15,868,261
    
    
    
    333,666
    
    
    
    37,532,267Total debt securities
    
    
    112,399
    
    
    
    21,664,006
    
    
    
    229,171
    
    
    
    30,359,716
    
    
    
    341,570
    
    
    
    52,023,722Equity securities
    
    
    54,790
    
    
    
    171,875
    
    
    
    62,200
    
    
    
    109,183
    
    
    
    116,990
    
    
    
    281,058Total temporarily
impaired securities
    
    $
    167,189
    
    
    $
    21,835,881
    
    
    $
    291,371
    
    
    $
    30,468,899
    
    
    $
    458,560
    
    
    $
    52,304,7802006Obligations of U.S.
Government
corporations and agencies
    
    $
    5,620
    
    
    $
    1,994,380
    
    
    $
    570,874
    
    
    $
    30,922,315
    
    
    $
    576,494
    
    
    $
    32,916,695Mortgage-backed securities
    
    
    34,629
    
    
    
    7,768,042
    
    
    
    371,334
    
    
    
    15,384,068
    
    
    
    405,963
    
    
    
    23,152,110Obligations of states
and political subdivisions
    
    
    
    
    
    
    
    
    
    
    1,103
    
    
    
    250,313
    
    
    
    1,103
    
    
    
    250,313U.S. Treasury Security
    
    
    
    
    
    
    
    
    
    
    172
    
    
    
    99,820
    
    
    
    172
    
    
    
    99,820Total debt securities
    
    
    40,249
    
    
    
    9,762,422
    
    
    
    943,483
    
    
    
    46,656,516
    
    
    
    983,732
    
    
    
    56,418,938Equity securities
    
    
    145
    
    
    
    1,445
    
    
    
    12,661
    
    
    
    128,500
    
    
    
    12,806
    
    
    
    129,945Total temporarily
impaired securities
    
    $
    40,394
    
    
    $
    9,763,867
    
    
    $
    956,144
    
    
    $
    46,785,016
    
    
    $
    996,538
    
    
    $
    56,548,883
  CSB Bancorp, Inc. 2007




---



##### 



6NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 2  Loans
  2007
    
    
    2006Commercial
    
    $
    46,000,089
    
    
    $
    55,512,802Commercial real estate
    
    
    97,984,830
    
    
    
    72,706,863Residential real estate
    
    
    92,084,807
    
    
    
    85,933,260Installment and credit card
    
    
    8,862,456
    
    
    
    10,509,913Construction
    
    
    11,700,889
    
    
    
    7,735,618Deferred loan costs (fees), net
    
    
    25,988
    
    
    
    33,482Total Loans
    
    $
    256,659,059
    
    
    $
    232,431,938
  2007
    
    
    2006
    
    
    2005Beginning balance
    
    $
    2,607,118
    
    
    $
    2,445,494
    
    
    $
    2,574,945Provision for loan losses
    
    
    472,100
    
    
    
    301,667
    
    
    
    282,664Loans charged-off
    
    
    (612,723
    )
    
    
    (309,644
    )
    
    
    (575,556
    )Recoveries
    
    
    119,406
    
    
    
    169,601
    
    
    
    163,441Ending balance
    
    $
    2,585,901
    
    
    $
    2,607,118
    
    
    $
    2,445,494
  2007
    
    2006Year-end loans with no allowance for
loan losses allocated
    
    $
    
    
    
    $
    Year-end loans with allowance for
loan losses allocated
    
    
    198,286
    
    
    
    987,897Amount of the allowance allocated
    
    
    42,773
    
    
    
    326,705
 2007
    
    2006
    
    2005Average of impaired loans during the year
    
    $
    729,699
    
    
    $
    700,202
    
    
    $
    576,907Interest income recognized during impairment
    
    
    25,876
    
    
    
    25,717
    
    
    
    2,764Cash-basis interest income recognized
    
    
    25,674
    
    
    
    24,762
    
    
    
    472Accrued interest not recognized
    
    
    35,166
    
    
    
    33,188
    
    
    
    36,404
  2007
    
    2006Loans past due over 90 days still accruing interest
    
    $
    144,339
    
    
    $
    Nonaccrual loans
    
    
    426,706
    
    
    
    1,508,577
  CSB Bancorp, Inc. 2007




---



##### 



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS6
 Note 3  Premises and Equipment
  2007
    
    
    2006Land and improvements
    
    $
    1,007,927
    
    
    $
    1,007,927Buildings and improvements
    
    
    8,499,044
    
    
    
    8,616,211Furniture and equipment
    
    
    4,753,393
    
    
    
    5,453,248Leasehold improvements
    
    
    172,483
    
    
    
    79,97914,432,847
    
    
    
    15,157,365Accumulated depreciation
    
    
    7,159,609
    
    
    
    7,767,183Premises and equipment, net
    
    $
    7,273,238
    
    
    $
    7,390,182
   Note 4  Interest-Bearing Deposits
  2007
    
    
    2006Demand
    
    $
    48,922,949
    
    
    $
    50,602,872Savings
    
    
    41,027,057
    
    
    
    39,370,654Time deposits:In excess of $100,000
    
    
    34,282,194
    
    
    
    32,304,548Other
    
    
    89,114,866
    
    
    
    93,444,467Total interest-bearing deposits
    
    $
    213,347,066
    
    
    $
    215,722,541
  2008
    
    $
    104,037,9472009
    
    
    5,368,4262010
    
    
    7,731,0922011
    
    
    1,816,2322012
    
    
    4,410,1512013 and beyond
    
    
    33,212Total
    
    $
    123,397,060
 CSB Bancorp, Inc. 2007




---



##### 



6NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 5  Borrowings
 Short-term borrowings
  2007
    
    2006Balance at year-end
    
    $
    27,305,157
    
    
    $
    28,022,077Average balance outstanding
    
    
    29,950,025
    
    
    
    32,974,064Maximum month-end balance
    
    
    34,371,093
    
    
    
    41,468,292Weighted-average rate at year-end
    
    
    3.49
    %
    
    
    3.71
    %Weighted-average rate during the year
    
    
    3.96
    
    
    
    3.84
  Other borrowings
  MATURITY RANGE
    
    
    WEIGHTED AVERAGE
    
    
    STATED INTEREST RATE RANGE
    
    
    AT DECEMBER 31,Description
    
    From
    
    
    To
    
    
    INTEREST RATE
    
    
    From
    
    
    To
    
    
    2007
    
    
    2006Fixed rate
    
    
    11/23/09
    
    
    
    12/21/17
    
    
    
    3.97
    %
    
    
    3.48
    %
    
    
    4.60
    %
    
    $
    24,000,000
    
    
    $
    Fixed rate amortizing
    
    
    1/01/08
    
    
    
    3/01/17
    
    
    
    6.45
    %
    
    
    5.60
    %
    
    
    7.15
    %
    
    
    2,023,888
    
    
    
    2,499,399$
    26,023,888
    
    
    $
    2,499,399
  YEAR ENDING DECEMBER 31,
    
    AMOUNT
    
    
    WEIGHTED-AVERAGE RATE2008
    
    $
    417,127
    
    
    
    6.42
    %2009
    
    
    6,369,517
    
    
    
    4.202010
    
    
    6,322,234
    
    
    
    4.652011
    
    
    247,456
    
    
    
    6.472012
    
    
    187,551
    
    
    
    6.472013 and beyond
    
    
    12,480,003
    
    
    
    3.73$
    26,023,888
    
    
    
    4.06
    %
  CSB Bancorp, Inc. 2007




---



##### 



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS6
 Note 6  Income Taxes
  2007
    
    
    2006
    
    
    2005Current
    
    $
    1,787,250
    
    
    $
    1,234,325
    
    
    $
    759,163Deferred
    
    
    (113,050
    )
    
    
    198,675
    
    
    
    408,837Total income tax provision
    
    $
    1,674,200
    
    
    $
    1,433,000
    
    
    $
    1,168,000
  2007
    
    
    2006
    
    
    2005Expected provision using statutory
federal income tax rate
    
    $
    1,763,900
    
    
    $
    1,544,700
    
    
    $
    1,373,800Tax-exempt income on state and municipal
securities and political subdivision loans
    
    
    (94,760
    )
    
    
    (138,600
    )
    
    
    (218,400
    )Interest expense associated with carrying
certain state and municipal securities
and political subdivision loans
    
    
    9,400
    
    
    
    11,800
    
    
    
    14,300Other
    
    
    (4,340
    )
    
    
    15,100
    
    
    
    (1,700
    )Total income tax provision
    
    $
    1,674,200
    
    
    $
    1,433,000
    
    
    $
    1,168,000
  2007
    
    
    2006Allowance for loan losses
    
    $
    722,900
    
    
    $
    626,600Unrealized loss on securities available-for-sale
    
    
    123,200
    
    
    
    300,650Other
    
    
    15,900
    
    
    
    26,950Deferred tax assets
    
    
    862,000
    
    
    
    954,200Depreciation of premises and equipment
    
    
    (309,300
    )
    
    
    (334,200
    )Federal Home Loan Bank stock dividends
    
    
    (459,600
    )
    
    
    (459,600
    )Deferred loan fees
    
    
    (80,500
    )
    
    
    (81,700
    )Other
    
    
    (66,500
    )
    
    
    (68,200
    )Deferred tax liabilities
    
    
    (915,900
    )
    
    
    (943,700
    )Net deferred tax (liability) asset
    
    $
    (53,900
    )
    
    $
    10,500
   CSB Bancorp, Inc. 2007




---



##### 



6NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Accounting for Uncertainty in Income Taxes,
an interpretation of FASB Statement 109,
 Note 7  Employee Benefits
    2007
    
    
    2006
    
    
    2005WEIGHTED
    
    
    
    
    
    
    WEIGHTED
    
    
    
    
    
    
    WEIGHTEDAVERAGE
    
    
    
    
    
    
    AVERAGE
    
    
    
    
    
    
    AVERAGEEXERCISE
    
    
    
    
    
    
    EXERCISE
    
    
    
    
    
    
    EXERCISESHARES
    
    
    PRICE
    
    
    SHARES
    
    
    PRICE
    
    
    SHARES
    
    
    PRICEOutstanding at beginning of year
    
    
    51,245
    
    
    $
    17.63
    
    
    
    21,970
    
    
    $
    17.09
    
    
    
    42,820
    
    
    $
    16.09Granted
    
    
    
    
    
    
    
    
    
    
    29,760
    
    
    
    18.00
    
    
    
    
    
    
    
    Exercised
    
    
    (40
    )
    
    
    (16.05
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    (365
    )
    
    
    (16.05
    )
    
    
    (485
    )
    
    
    (16.05
    )
    
    
    (20,850
    )
    
    
    (15.04
    )Outstanding at end of year
    
    
    50,840
    
    
    $
    17.64
    
    
    
    51,245
    
    
    $
    17.63
    
    
    
    21,970
    
    
    $
    17.09Options exercisable at year-end
    
    
    32,984
    
    
    $
    17.45
    
    
    
    19,788
    
    
    $
    17.20
    
    
    
    18,361
    
    
    $
    17.29Weighted-average fair value of
options granted during year
    
    
    
    
    
    
    N/A
    
    
    
    
    
    
    $
    1.26
    
    
    
    
    
    
    
    N/A
 CSB Bancorp, Inc. 2007




---



##### 



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6
 Note 7  Employee Benefits (cont.)
  Outstanding
    
    
    ExercisableWEIGHTED AVERAGE
    
    
    
    
    
    
    WEIGHTEDREMAINING
    
    
    
    
    
    
    AVERAGERANGE OF
    
    
    
    
    
    
    CONTRACTUAL LIFE
    
    
    
    
    
    
    EXERCISEEXERCISABLE PRICES
    
    
    NUMBER
    
    
    (YEARS)
    
    
    NUMBER
    
    
    PRICE$
    16.05
    
    
    
    8,080
    
    
    
    4.93
    
    
    
    8,080
    
    
    $
    16.0517.50
    
    
    
    2,000
    
    
    
    .58
    
    
    
    2,000
    
    
    
    17.5017.75
    
    
    
    10,000
    
    
    
    .38
    
    
    
    10,000
    
    
    
    17.7518.00
    
    
    
    29,760
    
    
    
    8.14
    
    
    
    11,904
    
    
    
    18.0019.00
    
    
    
    1,000
    
    
    
    1.59
    
    
    
    1,000
    
    
    
    19.00Outstanding at year-end
    
    
    
    
    
    
    50,840
    
    
    
    5.68
    
    
    
    32,984
    
    
    $
    17.45
  Note 8  Financial Instruments with Off-Balance Sheet Risk
    Contract Amount2007
    
    
    2006Commitments to extend credit
    
    $
    63,849,000
    
    
    $
    69,989,000Letters of credit
    
    $
    1,310,000
    
    
    $
    882,000
   CSB
Bancorp, Inc. 2007




---



##### 



6 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 9  Related-Party Transactions
  2007Balance at beginning of year
    
    $
    5,147,458New loans and advances
    
    
    1,631,913Repayments, including loans sold
    
    
    (824,480
    )Balance at end of year
    
    $
    5,954,891
  Note 10  Regulatory Matters
    CSB Bancorp, Inc. 2007




---



##### 



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6
 Note 10  Regulatory Matters (cont.)
  MINIMUM REQUIREDMINIMUM REQUIRED
    
    TO BE WELL-CAPITALIZED UNDERFOR CAPITAL
    
    PROMPT CORRECTIVE ACTIONACTUAL
    
    ADEQUACY PURPOSES
    
    REGULATIONSAMOUNT
    
    RATIO
    
    AMOUNT
    
    RATIO
    
    AMOUNT
    
    RATIOAs of December 31, 2007Total capital
(to risk-weighted assets)Consolidated
    
    $
    39,101
    
    
    
    16.4
    %
    
    $
    19,069
    
    
    
    8.0
    %
    
    $
    23,836
    
    
    
    10.0
    %Bank
    
    
    36,736
    
    
    
    15.4
    
    
    
    19,041
    
    
    
    8.0
    
    
    
    23,801
    
    
    
    10.0Tier I capital
(to risk-weighted assets)Consolidated
    
    
    36,515
    
    
    
    15.3
    
    
    
    9,534
    
    
    
    4.0
    
    
    
    14,301
    
    
    
    6.0Bank
    
    
    34,150
    
    
    
    14.4
    
    
    
    9,520
    
    
    
    4.0
    
    
    
    14,280
    
    
    
    6.0Tier I capital
(to average assets)Consolidated
    
    
    36,515
    
    
    
    11.0
    
    
    
    13,290
    
    
    
    4.0
    
    
    
    16,612
    
    
    
    5.0Bank
    
    
    34,150
    
    
    
    10.3
    
    
    
    13,271
    
    
    
    4.0
    
    
    
    16,589
    
    
    
    5.0As of December 31, 2006Total capital
(to risk-weighted assets)Consolidated
    
    $
    38,259
    
    
    
    17.7
    %
    
    $
    17,337
    
    
    
    8.0
    %
    
    $
    21,671
    
    
    
    10.0
    %Bank
    
    
    35,460
    
    
    
    16.4
    
    
    
    17,298
    
    
    
    8.0
    
    
    
    21,623
    
    
    
    10.0Tier I capital
(to risk-weighted assets)Consolidated
    
    
    35,652
    
    
    
    16.5
    
    
    
    8,668
    
    
    
    4.0
    
    
    
    13,002
    
    
    
    6.0Bank
    
    
    32,853
    
    
    
    15.2
    
    
    
    8,649
    
    
    
    4.0
    
    
    
    12,974
    
    
    
    6.0Tier I capital
(to average assets)Consolidated
    
    
    35,652
    
    
    
    11.1
    
    
    
    12,816
    
    
    
    4.0
    
    
    
    16,020
    
    
    
    5.0Bank
    
    
    32,853
    
    
    
    10.3
    
    
    
    12,781
    
    
    
    4.0
    
    
    
    15,976
    
    
    
    5.0
  CSB Bancorp, Inc. | 2007




---



##### 



6 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 11  Condensed Parent Company Financial Information
  Condensed Balance Sheets
 2007
    
    
    2006AssetsCash deposited with subsidiary bank
    
    $
    1,748,248
    
    
    $
    1,793,833Investment in subsidiary bank
    
    
    33,990,029
    
    
    
    32,271,581Securities available-for-sale
    
    
    285,427
    
    
    
    805,281Other assets
    
    
    261,769
    
    
    
    199,625Total assets
    
    $
    36,285,473
    
    
    $
    35,070,320Liabilities and Shareholders EquityLiabilities:Other liabilities
    
    $
    7,425
    
    
    $
    Total shareholders equity
    
    
    36,278,048
    
    
    
    35,070,320Total liabilities and shareholders equity
    
    $
    36,285,473
    
    
    $
    35,070,320
 Condensed Statements of Income
 2007
    
    
    2006
    
    
    2005Interest on securities
    
    $
    16,672
    
    
    $
    27,230
    
    
    $
    25,273Dividends from subsidiary
    
    
    2,500,000
    
    
    
    3,600,000
    
    
    
    3,910,886Total income
    
    
    2,516,672
    
    
    
    3,627,230
    
    
    
    3,936,159Operating expenses
    
    
    450,030
    
    
    
    377,769
    
    
    
    377,211Income before taxes and undistributed
equity income of subsidiary
    
    
    2,066,642
    
    
    
    3,249,461
    
    
    
    3,558,948Income tax benefit
    
    
    (150,000
    )
    
    
    (125,000
    )
    
    
    (128,000
    )Equity earnings in subsidiary, net of dividends
    
    
    1,297,272
    
    
    
    (264,356
    )
    
    
    (814,309
    )Net income
    
    $
    3,513,914
    
    
    $
    3,110,105
    
    
    $
    2,872,639
 CSB Bancorp, Inc. 2007




---



##### 



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6
 Note 11  Condensed Parent Company Financial Information (cont.)
 Condensed Statements of Cash Flows
 2007
    
    
    2006
    
    
    2005Cash flows from operating activities:Net income
    
    $
    3,513,914
    
    
    $
    3,110,105
    
    
    $
    2,872,639Adjustments to reconcile net income to cash provided by operations:Security accretion
    
    
    (508
    )
    
    
    (187
    )
    
    
    (187
    )Securities gain
    
    
    (5,430
    )
    
    
    
    
    
    
    Software amortization
    
    
    6,667
    
    
    
    6,667
    
    
    
    5,000Equity earnings in subsidiary, net of dividends
    
    
    (1,297,272
    )
    
    
    264,356
    
    
    
    814,309Stock compensation expense
    
    
    24,554
    
    
    
    13,850
    
    
    
    Change in other assets, liabilities
    
    
    (21,451
    )
    
    
    3,000
    
    
    
    (73,879
    )Net cash provided by operating activities
    
    
    2,220,474
    
    
    
    3,397,791
    
    
    
    3,617,882Cash flows from investing activities:Purchase of investment securities
    
    
    (95,787
    )
    
    
    (1,590
    )
    
    
    (304,376
    )Maturities, calls of investment securities
    
    
    504,985
    
    
    
    
    
    
    
    Purchase of software
    
    
    
    
    
    
    
    
    
    
    (20,000
    )Net cash provided by (used in) investing activities
    
    
    409,198
    
    
    
    (1,590
    )
    
    
    (324,376
    )Cash flows from financing activities:Purchase of treasury shares
    
    
    (904,410
    )
    
    
    (1,609,416
    )
    
    
    (1,459,752
    )Issuance of treasury shares
    
    
    644
    
    
    
    
    
    
    
    Cash dividends paid
    
    
    (1,771,491
    )
    
    
    (1,613,747
    )
    
    
    (1,822,491
    )Net cash used in financing activities
    
    
    (2,675,257
    )
    
    
    (3,223,163
    )
    
    
    (3,282,243
    )Net change in cash
    
    
    (45,585
    )
    
    
    173,038
    
    
    
    11,263Cash at beginning of year
    
    
    1,793,833
    
    
    
    1,620,795
    
    
    
    1,609,532Cash at end of year
    
    $
    1,748,248
    
    
    $
    1,793,833
    
    
    $
    1,620,795
 Note 12  Other Comprehensive Income (Loss)
  2007
    
    
    2006
    
    
    2005Unrealized holding (losses) gain on
available-for-sale securities
    
    $
    538,825
    
    
    $
    (57,908
    )
    
    $
    (1,225,090
    )Less reclassification adjustment for securities
Losses (gains) recognized in income
    
    
    (16,830
    )
    
    
    56,800
    
    
    
    (247,047
    )Net unrealized holding gains (losses)
    
    
    521,995
    
    
    
    (1,108
    )
    
    
    (1,472,137
    )Federal income tax provision (benefit)
    
    
    177,478
    
    
    
    (377
    )
    
    
    (500,527
    )Other comprehensive income (loss)
    
    $
    344,517
    
    
    $
    (731
    )
    
    $
    (971,610
    )
 CSB Bancorp, Inc. | 2007




---



##### 



6 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 13  Fair Values of Financial Instruments
  2007
    
    2006(Dollars in Thousands)CARRYING
    
    FAIR
    
    CARRYING
    
    FAIRAMOUNTS
    
    VALUE
    
    AMOUNTS
    
    VALUEFinancial assets:Cash and cash equivalents
    
    $
    12,193
    
    
    $
    12,193
    
    
    $
    17,653
    
    
    $
    17,653Securities
    
    
    74,526
    
    
    
    74,526
    
    
    
    70,241
    
    
    
    70,241Loans, net
    
    
    254,073
    
    
    
    254,623
    
    
    
    229,825
    
    
    
    226,830Accrued Interest Receivable
    
    
    1,409
    
    
    
    1,409
    
    
    
    1,414
    
    
    
    1,414Financial liabilities:Deposits
    
    $
    259,386
    
    
    $
    259,612
    
    
    $
    260,178
    
    
    $
    259,403Short-term borrowings
    
    
    27,305
    
    
    
    27,305
    
    
    
    28,022
    
    
    
    28,022Other borrowings
    
    
    26,024
    
    
    
    25,915
    
    
    
    2,499
    
    
    
    2,515Accrued Interest Payable
    
    
    375
    
    
    
    375
    
    
    
    350
    
    
    
    350
     CSB Bancorp, Inc. 2007




---



##### 



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6
 Note 14  Contingent Liabilities
   Note 15  Quarterly Financial Data (Unaudited)
  BASIC
    
    DILUTEDINTEREST
    
    NET INTEREST
    
    NET
    
    EARNINGS
    
    EARNINGSINCOME
    
    INCOME
    
    INCOME
    
    PER SHARE
    
    PER SHARE2007First quarter
    
    $
    5,146,282
    
    
    $
    3,255,292
    
    
    $
    814,512
    
    
    $
    .33
    
    
    $
    .33Second quarter
    
    
    5,288,509
    
    
    
    3,275,353
    
    
    
    956,467
    
    
    
    .39
    
    
    
    .39Third quarter
    
    
    5,418,095
    
    
    
    3,389,682
    
    
    
    863,090
    
    
    
    .35
    
    
    
    .35Fourth quarter
    
    
    5,378,235
    
    
    
    3,406,055
    
    
    
    879,845
    
    
    
    .35
    
    
    
    .352006First quarter
    
    $
    4,708,719
    
    
    $
    3,294,273
    
    
    $
    773,906
    
    
    $
    .30
    
    
    $
    .30Second quarter
    
    
    5,006,077
    
    
    
    3,272,933
    
    
    
    676,653
    
    
    
    .27
    
    
    
    .27Third quarter
    
    
    5,156,066
    
    
    
    3,294,090
    
    
    
    813,564
    
    
    
    .32
    
    
    
    .32Fourth quarter
    
    
    5,173,890
    
    
    
    3,306,165
    
    
    
    845,982
    
    
    
    .34
    
    
    
    .34
 CSB Bancorp, Inc. | 2007




---



##### 



OFFICERS 6
 Linda C. Amos
Assistant Vice President/Mortgage Loan OfficerRebecca A. Baker
Assistant Vice President/Banking Center ManagerPamela S. Basinger
Vice President/Financial OfficerDeborah S. Berner
Vice President/Marketing & Public RelationsPamela L. Bromund
Assistant Vice President/Loan Operations SupervisorWendy D. Brown
Assistant Vice President/Cash Management ServicesC. Dawn Butler
Vice President/Banking Center ManagerBeverly A. Carr
Operations Officer/Deposit ProcessingColby M. Chamberlin
Vice President/Business Development Officer/
Commercial LenderDale J. Clinton
Vice President/Internal AuditorG. Gail Cochran
Assistant Vice President/Executive Loan SecretaryPeggy L. Conn
Corporate SecretaryMarianne Davis
Assistant Cashier/Banking Center ManagerPaula S. Foy
Vice PresidentEric R. Giauque
Assistant Vice President/Banking Center ManagerRick L. Ginther
President/CEO of The Commercial & Savings BankLoretta Gray
Assistant Cashier/Assistant Banking Center ManagerPaul D. Greig
Senior Vice President/Chief Operation/Information
OfficerJason B. Hummel
Assistant Vice President/Commercial LenderJulie A. Jones
Vice President/Director of Human ResourcesStephen K. Kilpatrick
First Vice President/ Senior Credit OfficerBetty C. Lyon
Assistant Vice President/Banking Center Manager
    
    Kevin J. McAllister
Assistant Vice President/Trust OfficerJason R. McCulloch
Assistant Vice President/Brokerage ManagerSherry A. McRobie
Assistant Cashier/Banking Center ManagerPaula J. Meiler
Senior Vice President/Chief Financial OfficerA. Lee Miller
Vice President/Cash Management & Special ProjectsEdward J. Miller
Vice President/Banking Center ServicesMelissa F. Miller
Assistant Cashier/Banking Center ManagerDaniel L. Muse
Operations OfficerLisa M. Nelson
Assistant Vice President/Banking Center ManagerShawn E. Oswald
Vice President/Information System DirectorChris Rickly
Assistant Vice President/Commercial LenderThomas S. Rumbaugh
Vice President/Trust OfficerRebecca J. Shultz
Assistant Vice President/Loan OfficerScott A. Stallman
Operations OfficerHarland L. Stebbins
First Vice President/Senior Loan OfficerEddie L. Steiner
President/CEO of CSB Bancorp, Inc.Eric D. Strouse
Vice President/Commercial LenderJennifer M. Thorpe
Assistant Vice President/Senior Credit AnalystWilliam R. Tinlin
Vice President/Recovery/SecurityBrian D. Troyer
Assistant Vice President/Trust OperationsMarsha Walker
Assistant Vice President/Banking Center ManagerJane C. Whitmer
Assistant Cashier/Assistant Banking Center ManagerErvin C. Yoder
Vice President/Business Development Officer
 49




---



##### 



GENERAL INFORMATION 6
 The Commercial & Savings Bank
 Information & Customer Service
    
    330-674-9015 or 1-800-654-901524 Hour Xpress Phone Banking
    
    330-674-2720 or 1-888-438-2720Loan Services91 N. Clay, Millersburg
    
    Personal Loans330-763-2823Business Loans 330-763-2822Trust & Investment Services91 N. Clay, Millersburg
    
    Holmes & Tuscarawas County330-674-2397Trust & Investment Services146 E. Liberty, Suite 230, Wooster
    
    Wayne County330-264-033424 Hour Xpress Net Banking & BillPay
    
    www.csb1.com
 CSB Banking Centers
 Millersburg Banking CentersClinton Commons2102 Glen Dr. (Drive-Up ATM)
    
    330-674-2265South Clay91 S. Clay (Drive-Up ATM)
    
    330-674-0687Berlin Banking Center4587 S.R. 39, Berlin (Drive-Up ATM)
    
    330-893-3565Charm Banking Center4440 C.R. 70, Charm (Walk-Up ATM)
    
    330-893-3323Orrville Area Banking Center461 Wadsworth Road, Orrville (Drive-Up ATM)
    
    330-682-8000Shreve Banking Center333 W. South, Shreve (Drive-Up ATM)
    
    330-567-2226Sugarcreek Banking Center127 S. Broadway, Sugarcreek (Drive-Up ATM)
    
    330-852-4444Walnut Creek Banking Center4980 Olde Pump, Walnut Creek (Walk-Up ATM)
    
    330-893-2961Winesburg Banking Center2225 U.S. 62, Winesburg (Drive-Up ATM)
    
    330-359-5543
 Shareholder & General Inquiries
    
    Stock Listing Common Symbol: CSBB.OBCorporate Office91 N. Clay, Millersburg
    
    330-674-9015
 If you have questions
regarding your CSB Bancorp,
Inc. stock, please contact:Registrar and Transfer Company

Attn: Investor Relations
10 Commerce Drive
Cranford, New Jersey 07016
800-368-5948
www.rtco.comLegal Counsel
Bricker & Eckler LLP
100 South Third Street
Columbus, Ohio 43215
    
    If you are interested in purchasing
shares of CSB Bancorp, Inc., you may
contact your local broker or one of the
following:Jay McCulloch
Investment Executive
Infinex Financial Group
Located at The Commercial & Savings Bank
91 North Clay Street
P.O. Box 50
Millersburg, Ohio 44654
330-674-2397   800-654-9015George Geissbuhler
Sweney Cartwright & Co.
17 South High Street, Suite 300
Columbus, Ohio 43215
800-334-7481Linda Reall
Capital Securities of America, Inc.
150 Grand Trunk Avenue
Hartville, Ohio 44632
800-494-9497
    
    CSB Bancorp, Inc. is required to
file an annual report on Form 10-K
annually with the Securities and
Exchange Commission. Copies of the
Form 10-K annual report and the
Companys quarterly reports may be
obtained without charge by
contacting:Paula J. Meiler
Chief Financial Officer
CSB Bancorp, Inc.
91 North Clay Street
Millersburg, Ohio 44654
330-674-9015  800-654-9015The annual meeting of shareholders
is scheduled to be held on Wednesday,
April 23, 2008 at 7:00 p.m., at the
Carlisle Inn in Walnut Creek, Ohio.
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