Press Release  |  October 18, 2005


CSB Bancorp, Inc. Announces Third Quarter 2005 Financial Results

Margin Increases, Year to Date Net Income Increase.

MILLERSBURG, OH – (BUSINESS WIRE) – – CSB Bancorp, Inc., (CSBB.OB), parent company of The Commercial and Savings Bank, announced third quarter and nine-month year-to-date financial results.

For the most recent nine-month period, net income totaled $1,970,000, or $0.74 per share, compared to $1,875,000, or $0.71 per share a year earlier, a 5.1% increase on net income.

Net income for the three-month period ending September 30, 2005, stood at $690,000, compared to $747,000 for the third quarter of 2004. Quarterly earnings were $0.26 per share compared to the $0.28 per share in 2004.

Key earnings barometers performed as follows:

· For the quarter ended September 30, 2005, net interest income was $3,214,000, up 14.3% from $2,812,000 in 2004. For the nine-month period, net interest income was $9,171,000, an increase of 10.7% over the $8,284,000 for the same period of the prior year. The increase was bolstered by the growth in business loans and consumer home equity loans, and rate increases from variable rate loans exceeding the cost of funding.

· Non-interest income for the quarter stood at $539,000, up from $523,000 a year earlier. The Company recorded $1,626,000 in non-interest income for the nine months ended September 30, 2005, as compared to $1,568,000 for the same period the year before.

· For the quarter just ended, the Company recorded no income from the sale of securities versus $559,000 for the same period a year ago. This non-recurring income explains the year-over-year third quarter revenue decrease.

· Non-interest expenses for the quarter stood at $2,709,000, up from $2,673,000 a year earlier, and $8,020,000 at the nine-month mark, versus $7,723,000 for the same period the year before. The increase in non-interest expense is attributed to personnel expenses – mostly increased medical benefit programs, the additional expense to comply with Sarbanes-Oxley legislation, and the rising costs of expanding the Trust Department assets, that have increased by 50% from a year ago.

· Deposit balances over the same period a year ago increased $16.2 million, or 6.7%.

· The Company’s credit quality improved over the third quarter a year ago. Delinquent loans (those 30 days or more past due) stood at .64% of total loans versus .97% in 2004. Non-performing loans were .36% of total loans versus .78% a year ago. The lower provision of $71,000 as compared to $250,000 for third quarter of 2004 was a result of both improved credit quality and lower net charge-offs.
“We had a solid quarter. Absent the 2004 income from securities sales in the third quarter of 2004, we would have outperformed all earnings and benchmark ratios. Even with that sale included, we came very close to beating the quarter. Year to date, we remain ahead of 2004,” stated John J. Limbert, President and Chief Executive Officer of CSB Bancorp, Inc.

Total consolidated assets at September 30, 2005 stood at $319,412,000, up from $317,340,000 at December 31, 2004 and $309,048,000 at September 30, 2004.

Limbert continued, “Our balance sheet reflects in-market growth without the addition of leverage or purchase transactions. Our $10 million in growth, or 3.4%, is the result of our associates’ service efforts and reflects increases in existing customer balances coupled with an inflow of new clients. We believe that initiatives underway should continue this organic growth.”

Based in Millersburg, Ohio, CSB Bancorp, Inc., is the parent company of The Commercial and Savings Bank, an Ohio banking corporation chartered in 1879 serving consumers and businesses through nine banking centers in Holmes, Tuscarawas and Wayne counties. CSB is located on the web at www.csb1.com.

Shares of CSB Bancorp, Inc. stock are traded through broker/dealers under the symbol “CSBB.OB” and through private transactions.

Forward-looking Statement. The information in this press release contains forward-looking statements including certain projections, plans and forecasts of expected future performance that are not historical facts and that are subject to a number of risk and uncertainties. Actual results and performance could differ materially from those contemplated or implied by these forward-looking statements.


NEWS EDITOR: for further information, please contact Paula Meiler, Senior Vice President and Chief Financial Officer of CSB Bancorp, Inc. at (330) 763-2873 or
(800) 654-9015.

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