Letter to Shareholders

October 19, 2015

Dear Fellow Shareholder:

We are pleased to enclose a third quarter dividend remittance of $0.19 per share.  This amount equates to an annualized dividend yield of 3.2% based on CSB’s $24.00 stock price at the time of this writing (October 15). 

CSB’s third quarter 2015 net income amounted to $1.6 million, generating an annualized return on equity of 10.27% for the quarter.  Year to date earnings amount to $1.61 per share as compared to $1.62 per share through the same time of the prior year.

As of September 30, revenue is 3% above the prior year nine month period while expenses are 5% ahead of last year.  Total loans on September 30 are 1% above the year ago level, while deposits are up 4%.  The book value of equity has grown to $61 million, with a total balance sheet of $632 million.

Loan demand in the markets and customer bases we serve has been modest through much of 2015 date as many households and businesses remain cautious or debt averse, while others are using some of the cash reserves that have been accumulating over the past several years.  However, late in third quarter and through the beginning of October we are experiencing an increase in overall business loan demand.

The Federal Reserve’s rate setting committee seems inclined to announce an initial increase in short term interest rates if improving economic trends continue, but appears to be divided as to when such timing may be appropriate.  The odds for any 2015 interest rate rise appear to be dwindling.  Regardless of when the first increase occurs, it appears likely that there will only be a gradually rising rate environment over the next several years and only if the economy continues to improve.  Long term rates for home mortgages and ten year U.S. Treasuries remain low by historical standards.

CSB Bancorp, Inc. and The Commercial and Savings Bank remain well-positioned to continue growing and providing excellent financial services for the customers and communities we serve.  We thank you for your support as a shareholder



Eddie Steiner                                                           John Waltman
President and Chief Executive Officer                   Chairman of the Board


This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934.  We have based these forward-looking statements on the Company’s current expectations and projections about future events.  These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us and the Company’s affiliate companies, that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements.  In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions.  Factors that might cause or contribute to such a discrepancy include, but are not limited to those identified in the Company’s Securities and Exchange Commission filings, including the Company’s 2013 Annual Report on Form 10-K, filed on March 25, 2014.  The discussion should be read in conjunction with the Company’s Financial Statements and related Notes thereto included in the Company’s Form 10-K and Form 10-Q filings.

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