CSB Bancorp (CSBB) 8-K Financial statements and exhibits

CSB BANCORP, INC.

QUARTERLY REPORT

June 30, 2003

To Our Shareholders:

Dear Shareholder:

The Company’s unaudited net income for the second quarter of 2003 was $571,614 compared to $504,858 for the second quarter of 2002, an increase of 13.2%. Earnings per share were $.21 for the second quarter, compared to $.19 for the second quarter of 2002.

Net income totaled $1,169,446 for the first six months of 2003, compared to $881,247 for the same period in 2002, an increase of 32.7%. Earnings per share were $.44 for the first six months, compared to $.33 per share in 2002.

As a result of this continuing progress, the Company’s Board of Directors has declared a second quarter dividend of $.12 per share to shareholders of record June 30, 2003, payable July 10, 2003.

Net loans at June 30, 2003 increased 17.8% from June 30, 2002, and shareholders’ equity improved 3.3% during the same period.

As the Company continues to move forward, we are pleased with these performance results. We believe that our progress reflects the overall improvement in asset quality and continued expense monitoring. With the recent reduction in targeted Federal Reserve rates, to a 45-year low, we believe that our industry continues to experience pressure on interest margins. Our Company remains focused on sustaining the hard work of its Board and employees.

CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
	(000 omitted except share data)
		June 30
		2003	2002
ASSETS:
	Cash and due from banks	$     16,585	$     10,460
	Federal funds sold	-	14,859
	Securities	67,971	79,261
	Net loans	209,437	177,730
	Premises & equipment, net	8,844	9,084
	Other assets	2,254	4,512
	TOTAL ASSETS	$   305,091 =========	$   295,906 =========
LIABILITIES:
	Deposits	$   233,264	$   232,498
	Securities sold under agreements to repurchase	11,402	13,361
	Federal funds purchased	4,800	-
	Other borrowings	19,820	15,721
	Other liabilities	1,401	1,048
	TOTAL LIABILITIES	$   270,687	$   262,628
SHAREHOLDERS' EQUITY:
	Common stock	$     16,674	$     16,674
	Additional paid-in capital	6,414	6,414
	Retained earnings	12,060	11,170
	Treasury stock	(882)	(1,154)
	Accumulated other comprehensive income	138	174
	TOTAL SHAREHOLDERS' EQUITY	34,404	33,278
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$   305,091 =========	$   295,906 ==========
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
	(000 omitted except share data)
		Six months ended June 30
		2003	2002
INTEREST INCOME:
	Interest & fees on loans	$      6,363	$      6,272
	Interest on securities	1,524	2,100
	Other interest income	10	114
	TOTAL INTEREST INCOME	7,897	8,486
INTEREST EXPENSE:
	Interest on deposits	2,000	3,310
	Other interest expense	415	280
	TOTAL INTEREST EXPENSE	2,415	3,590
Net interest income		5,482	4,896
	Credit for loan losses	(51)	(242)
Net interest income after credit for loan losses		5,533	5,138
Total other income		1,027	1,075
Total other expense		5,257	5,418
Federal income tax provision (credit)		134	(86)
NET INCOME		$      1,169 =========	$         881 ==========
EARNINGS PER SHARE		$        0.44 =========	$        0.33 ==========
FINANCIAL HIGHLIGHTS
	(000 omitted except share data)
		June 30
		2003	2002
Assets		$   305,091	$   295,906
Net loans		209,437	177,730
Securities		67,971	79,261
Deposits		233,264	232,498
Shareholders' equity		34,404	33,278
Net income		1,169	881
Earnings per share		0.44	0.33
Book value per outstanding share		13.05	12.65
*Quarterly price per share:
	High	18.00	19.85
	Low	17.00	18.75
*Includes transactions reported by market makers and private transactions known
to the Company.
KEY RATIOS
		June 30
		2003	2002
Return on average assets		0.81%	0.61%
Return on average equity		7.09%	5.39%
Loan to deposit		90.88%	78.06%
Equity to assets		11.28%	11.25%
Copies of
CSB BANCORP, INC.
S.E.C. Filings may be obtained by writing:
A. Lee Miller, CFO
CSB BANCORP, INC.
6 West Jackson Street
Millersburg, Ohio 44654
(800)654-9015 or 330-674-9015
Stock Symbol:  CSBB.OB
Website:  www.csb1.com