Press Release  |  April 20, 2010


First Quarter Highlights
• Net Income totals $737,000
• Diluted earnings per share of $0.27
• Return on average common equity of 6.44%
• Return on average assets of 0.67%

Millersburg, Ohio – April 20, 2010 – CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced first quarter 2010 net income of $737 thousand, or $.27 per basic and diluted share, as compared to $896 thousand, or $.33 per basic and diluted share for the same period in 2009.

Annualized returns on average common equity and average assets for the quarter were 6.44% and 0.67%, respectively, compared with 8.20% and 0.86% for the first quarter of 2009.

Eddie Steiner, President and CEO stated, “The past quarter’s earnings were reduced by soft loan demand, an increase in nonperforming commercial loan balances, and low prevailing interest rates on loans and investment securities. While first quarter earnings are below year ago levels, the Company continues to generate consistent profitability.”

Net interest income of $3.9 million decreased $13 thousand or 0.3% from the same quarter in the prior year. Net interest margin equated to 3.78% for the quarter, as compared to 3.99% during the first quarter of 2009. Total revenue of $4.7 million decreased 1.5% compared with revenue of the prior-year first quarter.

Non-interest expense totaled $3.0 million during the quarter, a decrease of $88 thousand, or 2.8%, from first quarter 2009. The Company’s first quarter efficiency ratio was 64.8%, as compared to same quarter results in the prior year of 67.4%.

Federal income tax expense was $315 thousand for first quarter 2010, reflecting an effective tax rate of 29.9%, compared to $424 thousand for the same quarter in 2009, or 32.1%. The decrease in the effective tax rate was primarily the result of a higher proportion of tax-exempt securities in the Company’s investment portfolio.

At March 31, 2010, assets totaled $436 million, down $15 million, or 3.3%, from December 31, 2009. Securities balances declined $7 million, or 8.6% as various securities matured or were called by the issuer. Total loan balances declined $2 million, or 0.7% to $312 million at March 31. Commercial loan balances, including commercial real estate, increased $800 thousand or 0.4% during the quarter ended March 31, residential mortgage and home equity balances declined $2.2 million, or 1.9% during the quarter, while consumer installment, and other loan balances decreased $900 thousand, or 11.2%.

Net charge-offs for the quarter totaled $223 thousand, an annualized rate of 0.29% of average loan balances, as compared to $233 thousand or 0.30% during the first quarter of 2009.

As of March 31, 2010, nonperforming assets totaled $6.5 million, or 2.09% of period-end loans plus other real estate, compared with $4.3 million, or 1.37%, at the prior quarter-end. Commenting on the Company’s credit quality, Mr. Steiner noted, “Nonperforming assets have increased as difficult economic conditions continue to exert stress on some borrowers. We expect that nonperforming assets and net charge-offs will remain somewhat elevated through much of 2010. We have increased our allowance for loan losses and believe we are appropriately reserved for loss risks embedded in the loan portfolio.”

The Company’s allowance for loan losses at March 31, 2010 was 1.40% of period end loans and the Company funded $519 thousand in loan loss provision during the quarter. The ratio of allowance for loan losses to nonperforming loans stood at 70% at quarter-end.

Deposit balances totaled $326 million at quarter-end, a decrease of $3 million, or 1.0% from the prior quarter-end. Within the deposit category, non interest-bearing account balances decreased $1 million, or 2.5%. Interest bearing checking, money market and savings accounts declined $1 million, or 0.8%, during the quarter and time deposit balances decreased $1 million, or 0.6%%.

Short-term and other borrowings amounted to $62 million as of March 31, a decrease of $12 million or 16.2% from December 31 as the company repaid certain federal home loan bank advances that matured during the quarter.

Shareholders’ equity totaled $46 million on March 31, 2010 with 2.7 million common shares outstanding and a tangible equity to assets ratio of 10.1% at quarter-end. In concluding remarks, Mr. Steiner observed, “The Company’s capital and liquidity positions remain strong and provide stability to effectively meet the financial service needs of the communities we serve.”

The Company declared a common dividend of $0.18 per share during the quarter.

About CSB Bancorp, Inc.
CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $436 million as of March 31, 2010. CSB provides a complete range of banking and other financial services to consumers and businesses through its wholly owned subsidiary, The Commercial and Savings Bank, with fourteen banking centers in Holmes, Tuscarawas, Wayne and Stark counties and Trust offices located in Millersburg and Wooster, Ohio.

Forward-Looking Statement
This release contains forward-looking statements relating to present or future trends or factors affecting the banking industry, and specifically the financial condition and results of operations, including without limitation, statements relating to the earnings outlook of the Company, as well as its operations, markets and products. Actual results could differ materially from those indicated. Among the important factors that could cause results to differ materially are interest rate changes, softening in the economy, which could materially impact credit quality trends and the ability to generate loans, changes in the mix of the Company’s business, competitive pressures, changes in accounting, tax or regulatory practices or requirements and those risk factors detailed in the Company’s periodic reports and registration statements filed with the Securities and Exchange Commission. The Company undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.

Contact Information:
Paula J. Meiler, SVP & CFO

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