CSB Bancorp (CSBB) 8-K CSB Bancorp, Inc. Reports Earnings for Second Quarter 2009

Exhibit 99.1

CSB BANCORP, INC. REPORTS EARNINGS FOR SECOND QUARTER 2009

Second Quarter and Year to Date Highlights

	Quarter Ended			Six Months Ended
	June 30, 2009			June 30, 2009
Diluted earnings per share	$	0.26		$	0.59
Net Income	$	706,000		$	1,602,000
Return on average common equity		6.32	%		7.24	%
Return on average assets		0.67	%		0.76	%

Millersburg, Ohio — July 22, 2009 — CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced second quarter 2009 net income of $706 thousand, or $.26 per basic and diluted share, as compared to $878 thousand, or $.36 per basic and diluted share for the same period in 2008.

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 6.32% and 0.67%, respectively, compared with 9.46% and 1.03% for the second quarter of 2008.

Eddie Steiner, President and CEO stated, “A deep recession continues to suppress economic activity in our markets and shows few signs of significant recovery in the near term. Loan charge-offs and higher FDIC premiums dampened net earnings during the first half of 2009 and we expect similar headwinds for the next six to twelve months while the economy attempts to regain its footing. Core revenue generation remains strong, however, and our high levels of capital and liquidity provide stability and a secure foundation for the future.”

Total revenue amounted to $4.7 million during the quarter, compared with $4.0 million in the second quarter of 2008, an increase of 16.7%. Net interest income of $3.8 million increased $546 thousand or 16.6% over the same quarter of the prior year, while declining $61 thousand or 1.6% from the immediate prior quarter.

Other income of $780 thousand reflects an increase of $101 thousand from the same quarter in the prior year. Gains on sales of mortgage originations account for $110 thousand of the difference, offset partially by a $43 thousand reduction in trust and brokerage revenues due to declines in market valuations and reduced trading volumes.

Non-interest expense totaled $3.2 million during the quarter, an increase of $593 thousand or 22.7% from second quarter 2008. Of the increase, $211 thousand resulted from higher FDIC

insurance premiums assessed on all member financial institutions. The majority of the remaining increase in non-interest expense reflects the increased scale of the Company’s operations following the Indian Village acquisition during fourth quarter 2008. That transaction increased the Company’s balance sheet by approximately 20%. The second quarter ratio of operating expenses to revenue increased to 68.8% as compared to 65.5% in the same quarter of 2008. Absent the higher FDIC premiums, the ratio would have declined to 64.3%.

Federal income tax expense was $302 thousand for second quarter 2009, reflecting an effective tax rate of 29.9%, compared to $423 thousand for the same quarter in 2008, or 32.5%. 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.

Average asset balances during second quarter 2009 totaled $424 million, an increase of $2.1 million or 0.5% over first quarter 2009. Average gross loan balances of $319 million increased $1.1 million, or 0.34%, during the quarter. Average commercial loan balances, including commercial real estate, increased $3.3 million or 1.8%, while average balances for residential mortgage and home equity loans declined $1.8 million or 1.4% during the quarter, and installment and other consumer average loan balances decreased $402 thousand, or 4.3%.

As of June 30, 2009, nonperforming assets totaled $4.1 million or 1.29% of period-end loans plus other real estate, compared with $4.2 million or 1.31% at March 31, 2009. Net charge-offs for the quarter totaled $398 thousand, or an annualized rate of 0.50% of average total loans. Steiner remarked, “Nonperforming asset balances stabilized during the second quarter and we are actively working with the credit relationships that are struggling to remain current. We anticipate nonperforming asset levels and net charge-offs will remain somewhat elevated through the remainder of 2009 and likely into 2010.”

The Company’s allowance for loan losses at June 30, 2009 was 1.07% of period end loans and the Company funded $394 thousand in loan loss provision during the quarter. The ratio of allowance for loan losses to nonperforming loans stood at 83% at quarter-end.

Average deposit balances grew $3.9 million, or 1.3% during the quarter to $305 million. Within the deposit category, average balances for non interest-bearing accounts increased $653 thousand or 1.5%, while interest bearing checking, money market and savings average balances increased $838 thousand or 0.8% during the quarter and average time deposit balances increased $2.4 million, or 1.6%.

Short-term and other borrowings amounted to $75.2 million as of June 30, an increase of $4.2 million or 5.9% from March 31, with the increase attributable to repurchase agreement balances maintained with customers of the company.

Shareholders’ equity totaled $44.7 million on June 30, 2009 with 2.7 million common shares outstanding and a tangible equity to assets ratio of 10.16% at quarter-end.

The Company declared a common dividend of $.18 per share during the quarter.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $422 million as of June 30, 2009. 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 thirteen banking centers in Holmes, Tuscarawas, Wayne and Stark counties and Trust offices located in Millersburg and Wooster, Ohio. A fourteenth banking center is scheduled to open this fall on West High Street in Orrville, 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
330-763-2873
paula.meiler@csb1.com

CSB BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)
(Dollars in thousands except per share data)

	Quarters															YTD
	2009			2009			2008			2008			2008			2009			2008
EARNINGS	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			6 months			6 months
Net interest income FTE (a)	$	3,884		$	3,940		$	3,812		$	3,473		$	3,318		$	7,824		$	6,724
Provision for loan losses		394			241			71			107			48			635			155
Other income		780			796			724			674			680			1,576			1,635
Other expenses		3,210			3,129			3,303			2,663			2,617			6,339			5,346
FTE adjustment (a)		52			46			39			34			32			98			58
Net income		706			896			767			890			878			1,602			1,880
Diluted EPS		0.26			0.33			0.29			0.37			0.36			0.59			0.77
PERFORMANCE RATIOS
Return on average assets (ROA)		0.67	%		0.86	%		0.76	%		1.02	%		1.03	%		0.76	%		1.10	%
Return on average common equity (ROE)		6.32	%		8.20	%		7.40	%		9.46	%		9.46	%		7.24	%		10.14	%
Net interest margin FTE (a)		3.88	%		3.99	%		3.98	%		4.19	%		4.09	%		3.93	%		4.14	%
Efficiency ratio		68.80	%		67.73	%		72.56	%		64.19	%		65.46	%		68.27	%		63.95	%
Number of full-time equivalent employees		141			139			144			124			128
MARKET DATA
Book value/common share	$	16.34		$	16.23		$	15.89		$	15.49		$	15.10
Period-end common share mkt value		16.00			14.00			15.00			15.25			15.75
Market as a % of book		97.92	%		86.26	%		94.40	%		98.45	%		104.29	%
PE ratio		12.80			10.37			10.49			10.23			10.71
Cash dividends/common share	$	0.18		$	0.18		$	0.18		$	0.18		$	0.18		$	0.36		$	0.36
Common stock dividend payout ratio		69.23	%		54.55	%		62.07	%		48.65	%		50.00	%
Average basic common shares		2,734,799			2,734,799			2,629,394			2,422,014			2,432,793			2,734,799			2,438,695
Average diluted common shares		2,734,799			2,734,799			2,629,394			2,422,014			2,432,793			2,734,799			2,438,695
Period end common shares outstanding		2,734,799			2,734,799			2,734,799			2,421,983			2,422,050
Common shares repurchased		0			0			0			67			18,800			0			25,574
Common stock market capitalization	$	43,757		$	38,287		$	41,022		$	36,935		$	38,147
ASSET QUALITY
Gross charge-offs	$	431		$	290		$	47		$	52		$	33		$	721		$	55
Net charge-offs (recoveries)		398			233			(84	)		44			21			631			23
Allowance for loan losses		3,398			3,402			3,394			2,781			2,718
Nonperforming assets (NPAs)		4,123			4,182			2,722			577			615
Net charge-off/average loans ratio		0.50	%		0.30	%		(0.11)	%		0.07	%		0.03	%		0.40	%		0.02	%
Allowance for loan losses/period-end loans		1.07			1.07			1.07			1.08			1.09
NPAs/loans and other real estate		1.29			1.31			0.86			0.23			0.25
Allowance for loan losses/nonperforming loans		83.47			82.51			124.69			481.98			441.75
CAPITAL & LIQUIDITY
Period-end tangible equity to assets		10.16	%		10.09	%		9.84	%		10.91	%		10.54	%
Average equity to assets		10.56			10.50			10.71			10.84			10.94
Average equity to loans		14.06			13.91			13.74			14.74			14.97
Average loans to deposits		104.76			105.76			102.72			102.86			101.48
AVERAGE BALANCES
Assets	$	423,767		$	421,694		$	400,873		$	345,481		$	341,297		$	422,662		$	342,144
Earning assets		401,966			400,356			381,011			330,219			326,435			401,368			326,730
Loans		319,421			318,325			293,714			254,104			249,395			318,876			251,827
Deposits		304,910			300,993			285,926			247,040			245,767			302,962			248,371
Shareholders’ equity		44,918			44,294			41,251			37,446			37,334			44,649			37,261
ENDING BALANCES
Assets	$	422,416		$	422,390		$	424,657		$	343,743		$	347,104
Earning assets		401,558			402,011			402,225			328,812			329,468
Loans		317,880			319,425			316,290			256,343			249,543
Deposits		300,513			304,591			305,453			245,953			248,177
Shareholders’ equity		44,678			44,392			43,468			37,512			36,577

NOTES:

(a) — Net Interest income on a fully tax-equivalent (“FTE”) basis restates interest on tax-exempt securities and loans as if such interest were subject to federal income tax at the statutory rate. Net interest income on an FTE basis is not an accounting principle generally accepted in the United States of America.

CSB BANCORP, INC.
CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 30,			June 30,
	2009			2008
ASSETS
Cash and cash equivalents
Cash and due from banks	$	7,643,710		$	11,350,478
Interest-earning deposits in other banks		8,056,334			181,101
Federal funds sold		1,691,000			11,000,000
Total cash and cash equivalents		17,391,044			22,531,579
Securities
Available-for-sale, at fair-value		67,302,810			65,562,619
Restricted stock, at cost		5,463,100			3,181,600
Total securities		72,765,910			68,744,219
Loans held for sale		1,164,660			0
Loans		317,879,674			249,542,605
Less allowance for loan losses		3,397,920			2,717,912
Net loans		314,481,754			246,824,693
Goodwill and core deposit intangible		1,949,483			0
Bank owned life insurance		2,800,812			0
Premises and equipment, net		8,243,694			7,076,699
Accrued interest receivable and other assets		3,618,739			1,926,733
TOTAL ASSETS	$	422,416,096		$	347,103,923
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	44,083,567		$	40,794,649
Interest-bearing		256,429,380			207,381,737
Total deposits		300,512,947			248,176,386
Short-term borrowings		24,917,661			27,111,134
Other borrowings		50,261,780			33,767,797
Accrued interest payable and other liabilities		2,045,383			1,471,300
Total liabilities		377,737,771			310,526,617
Shareholders’ equity
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares in 2009 and 2,667,786 in 2008		18,628,767			16,673,667
Additional paid-in capital		9,889,447			6,459,819
Retained earnings		20,341,438			18,994,645
Treasury stock at cost — 245,803 shares in 2009 and 245,736 shares in 2008		(5,014,541	)		(5,013,535	)
Accumulated other comprehensive income (loss)		733,214			(537,290	)
Total shareholders’ equity		44,678,325			36,577,306
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	422,416,096		$	347,103,923

CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Quarter ended					Six months ended
	June 30,					June 30,
	2009			2008		2009		2008
Interest and dividend income:
Loans, including fees	$	4,582,288		$	4,017,256	$	9,203,044	$	8,429,960
Taxable securities		797,541			772,867		1,685,408		1,577,489
Nontaxable securities		79,925			55,544		147,922		99,422
Other		6,132			47,664		8,856		69,871
Total interest and dividend income		5,465,886			4,893,331		11,045,230		10,176,742
Interest expense:
Deposits		1,135,407			1,166,153		2,297,802		2,593,911
Other		498,412			441,414		1,021,801		917,302
Total interest expense		1,633,819			1,607,567		3,319,603		3,511,213
Net interest income		3,832,067			3,285,764		7,725,627		6,665,529
Provision for loan losses		394,068			47,677		635,140		154,709
Net interest income after provision for loan losses		3,437,999			3,238,087		7,090,487		6,510,820
Non-interest income
Service charges on deposits accounts		324,210			339,256		617,510		626,408
Trust services		119,616			162,568		234,375		351,232
Securities gains (losses)		(577	)		—		115,503		—
Gain on sale of loans		116,890			7,176		184,460		271,835
Other		219,960			170,946		424,406		385,957
Total non-interest income		780,099			679,946		1,576,254		1,635,432
Non-interest expenses
Salaries and employee benefits		1,696,213			1,527,162		3,404,577		3,064,065
Occupancy expense		230,817			184,915		474,162		382,796
Equipment expense		137,951			119,320		271,696		244,770
Franchise tax expense		126,580			107,380		236,370		214,810
Professional and director fees		184,553			140,343		328,316		279,899
FDIC deposit insurance		218,300			7,320		391,200		14,585
Amortization of intangible assets		16,227			0		32,545		0
Other expenses		599,606			530,831		1,200,281		1,144,805
Total non-interest expenses		3,210,247			2,617,271		6,339,147		5,345,730
Income before income tax		1,007,851			1,300,762		2,327,594		2,800,522
Federal income tax provision		301,800			423,000		725,600		921,000
Net income	$	706,051		$	877,762	$	1,601,994	$	1,879,522
Net income per share
Basic	$	0.26		$	0.36		0.59	$	0.77
Diluted	$	0.26		$	0.36		0.59	$	0.77

Note: Certain prior year balances have been reclassified to conform to the current year presentation.