CSB Bancorp (CSBB) 8-K CSB Bancorp, Inc. Reports Increase In First Quarter 2006 Earnings Per Share

Exhibit 99.1

CSB BANCORP, INC. REPORTS INCREASE IN
FIRST QUARTER 2006 EARNINGS PER SHARE

First Quarter 2006 Highlights

• Diluted earnings per share of $0.30

• Net income of $774 thousand

• Return on average common equity of 8.89%

• Return on average assets of 0.99%

Millersburg, Ohio – April 13, 2006 –CSB Bancorp, Inc. (“CSB”) (OTC BB: CSBB.OB) today announced first quarter 2006 net income of $774 thousand, or $0.30 per diluted share, up from $667 thousand, or $0.25 per diluted share, for the same period in 2005. Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 8.89% and 0.99%, respectively, compared with 7.42% and 0.86% for the first quarter of 2005.

“Our first quarter results reflect continued progress in enhancing “other income” generation through the ongoing success of fee-based programs as well as improving our net interest margin,” said Rick L. Ginther, Interim Chief Executive Officer. “Our strategic focus of prudently growing the balance sheet remains unaltered as we have taken steps to increase the volume of earning assets while continuing to grow core deposit relationships. Growth in both assets and core deposits has had a positive effect this quarter despite a challenging interest rate environment. Service charges also increased significantly over the first quarter 2005, a result of our consumer and small business customer use of fee-based products.”

Focusing on CSB’s strong equity position, Mr. Ginther added, “Our capital position, coupled with the Company’s high credit quality and core earnings dependability, has allowed us to increase the shareholder’s current cash dividend declared for the first quarter 2006 to $.16, up $.02 from the first quarter dividend of $0.14 declared in 2005. Additionally, the share repurchase program continues to provide enhancement of earnings per share with the purchase of over 11,000 shares in the first quarter. Even with these purchases, our equity to assets ratio stands at a very strong 10.98%.”

Total revenue, defined as net interest income on a fully-tax equivalent basis plus non-interest income net of securities transactions, was $4.0 million for the first quarter of 2006, compared with $3.6 million in the prior-year first quarter, an increase of 11.1%. The net interest margin increased 43 basis points to 4.57%, while average assets increased $3.1 million to $316.8 million. During the first quarter of 2006, the average balance of securities increased approximately $7.2 million, or 8.8%, compared with the first quarter of 2005, while average loans decreased $6.4 million, or 2.9%, to $216.6 million.

Non-interest income for the first quarter of 2006 totaled $611 thousand, compared with $533 thousand, (net of securities gains of $247 thousand), for the first quarter of 2005, an increase of 14.6%. During the first quarter of 2006, service charges on deposits rose $103 thousand, or 48.2%, compared with the first quarter of 2005. Trust and brokerage fees decreased $25 thousand, or 21.3%, in the first quarter of 2006 compared with the same quarter last year.

Non-interest expense totaled $2.7 million for the first quarter of 2006, an increase of $71 thousand or 2.6% over the first quarter of 2005. The efficiency ratio for the quarter was 69.38%, compared with 70.47% for the year ago quarter.

Federal income tax expense was $351 thousand and $259 thousand for the quarters ended March 31, 2006 and 2005, respectively. The effective tax rate for the first quarter 2006 was 31.2% compared to 28.0% for the same quarter in 2005. The increase in the effective tax rate for first quarter 2006 reflects a decline in tax-free interest income, primarily resulting from the sale and maturity of bonds within the tax-free investment portfolio.

As of March 31, 2006, nonperforming assets were $1.1 million, or 0.48% of period-end loans plus other real estate, compared with $1.2 million, or 0.58%, as of December 31, 2005, and $1.4 million or 0.64%, as of March 31, 2005. Net charge-offs for the first quarter of 2006 totaled $7 thousand, compared with net charge-offs of $271 thousand for the first quarter of 2005. Commenting on the Company’s credit quality Ginther said, “At March 31, 2006, our delinquency rate stood at 0.58% versus 0.84% on March 31, 2005. Coupled with the low nonperforming assets and declining charge-off rates, we remain optimistic about our ability to manage credit deterioration that could be expected to result from a slowdown in the economy.”

The Company recorded a $32 thousand loan loss provision in the first quarter of 2006, as compared to $106 thousand in the first quarter of 2005. The decrease in loan loss provision for the first quarter 2006 from the first quarter 2005 reflects the increase in the Company’s level of allowance for loan losses as a percentage of nonperforming loans.

During the first quarter of 2006, the level of nonperforming loans improved from the prior quarter. This improvement, combined with a declining historical charge-off history, has factored into the Company’s reserve methodology. The allowance for loan losses at March 31, 2006, was 1.12% of period-end loans, compared with 1.14% on December 31, 2005, and 1.08% on March 31, 2005. The March 31, 2006, ratio of allowance for loan losses to nonperforming loans stood at 369%.

Assets at March 31, 2006, totaled $319 million, up 1.95% from March 31, 2005. Period-end loans were $221.4 million, declining $2.7 million or 1.2%, driven by a $3.9 million decline in mortgage loans coupled with a $3.0 million reduction in commercial participation loans that were primarily repurchased by the originating bank. These reductions in loan balances were partially offset by home equity loans increasing $3.5 million or 22.4%, and consumer installment loans increasing approximately $500 thousand. Investment securities increased $9.2 million, or 13.2%, over the March 31, 2005 balance.

Deposits totaled $247 million at March 31, 2006, compared with $244 million on March 31, 2005. Year-over-year, average checking account balances have decreased approximately $500 thousand. Over those same time periods, money market accounts increased $2 million, as a result of a new product offering, while average traditional savings accounts declined $2 million. As the period represented a time of rising short-term interest rates, time deposits of less than $100 thousand grew an average $3.4 million from first quarter 2005 to first quarter 2006, while time deposits greater than $100 thousand remained virtually unchanged.

Shareholders’ equity was $35.0 million on March 31, 2006. The Company’s capital position remains strong, as tangible equity to assets was 10.98%, compared with 11.44% on March 31, 2005. The common dividend declared during the quarter was $0.16 per share, a $0.02 increase from the prior-year quarter. During the first quarter of 2006 the Company repurchased 11,094 common shares. Period-end common shares outstanding totaled 2.567 million.

About CSB Bancorp, Inc.

CSB is a financial services holding company headquartered in Millersburg, Ohio, with approximate assets of $319 million as of March 31, 2006. 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 nine banking centers in Holmes, Tuscarawas and Wayne counties and a Trust office in 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
330-763-2873
paula.meiler@csb1.com

CSB BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS

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

	Quarters
	2006			2005			2005			2005			2005
EARNINGS	1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Net interest income FTE (a)	$	3,350		$	3,449		$	3,299		$	3,112		$	3,019
Provision for loan losses		32			—			71			106			106
Other income		611			707			539			554			780
Other expenses		2,748			2,783			2,709			2,634			2,677
FTE adjustment (a)		56			74			85			84			90
Net income		774			903			690			613			667
Diluted EPS		0.30			0.35			0.26			0.23			0.25
PERFORMANCE RATIOS
Return on average assets (ROA)		0.99	%		1.12	%		0.87	%		0.79	%		0.86	%
Return on average common equity (ROE)		8.89	%		9.93	%		7.49	%		6.78	%		7.42	%
Net interest margin FTE (a)		4.57	%		4.54	%		4.43	%		4.26	%		4.14	%
Efficiency ratio		69.38	%		66.96	%		70.58	%		71.85	%		70.47	%
Number of full-time equivalent employees		122			127			127			130			125
MARKET DATA
Book value/common share	$	13.63		$	13.64		$	13.76		$	13.79		$	13.52
Period-end common share mkt value		20.90			21.00			22.35			20.50			20.25
Market as a % of book		153.34	%		153.96	%		162.43	%		148.66	%		149.67	%
PE ratio		17.42			15.00			21.49			22.28			20.25
Cash dividends/common share	$	0.16		$	0.14		$	0.14		$	0.14		$	0.14
Common stock dividend payout ratio		53.33	%		40.00			53.85			60.87			56.00
Average basic common shares		2,572,089			2,620,102			2,644,957			2,644,968			2,644,965
Average diluted common shares		2,576,094			2,623,684			2,649,890			2,648,286			2,653,762
Period end common shares outstanding		2,567,405			2,578,499			2,644,952			2,644,966			2,644,968
Common shares repurchased		11,094			66,439			28			2			—
Common stock market capitalization	$	53,659		$	54,148		$	59,115		$	54,222		$	53,561

	Quarters
	2006			2005			2005			2005			2005
EARNINGS	1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
ASSET QUALITY
Gross charge-offs	$	35		$	35		$	25		$	213		$	303
Net charge-offs		7			-1			4			139			271
Allowance for loan losses		2,471			2,445			2,444			2,377			2,410
Nonperforming assets (NPAs)		1,070			1,241			1,408			1,391			1,431
Net charge-off/average loans ratio		0.01	%		0.00	%		0.01	%		0.25	%		0.49	%
Allowance for loan losses/period-end loans		1.12	%		1.14	%		1.12	%		1.06	%		1.08	%
NPAs/loans and other real estate		0.48	%		0.58	%		0.64	%		0.62	%		0.64	%
Allowance for loan losses/nonperforming loans		368.80	%		305.13	%		312.30	%		310.21	%		168.40	%
CAPITAL & LIQUIDITY
Period-end tangible equity to assets		10.98	%		10.96	%		11.39	%		11.72	%		11.44	%
Average equity to assets		11.15	%		11.23	%		11.61	%		11.65	%		11.62	%
Average equity to loans		16.30	%		16.75	%		16.54	%		16.25	%		16.36	%
Average loans to deposits		87.36	%		83.60	%		87.90	%		91.45	%		91.86	%
AVERAGE BALANCES
Assets	$	316,806		$	321,205		$	315,021		$	311,447		$	313,744
Earning assets		297,178			301,615			295,342			292,872			295,731
Loans		216,609			215,379			221,096			223,252			222,970
Deposits		247,944			257,623			251,531			244,118			242,728
Shareholders’ equity		35,311			36,078			36,562			36,282			36,470
ENDING BALANCES
Assets	$	318,777		$	320,989		$	319,412		$	311,171		$	312,665
Earning assets		300,254			298,105			298,916			292,762			293,773
Loans		221,365			215,020			218,577			223,442			224,108
Deposits		247,044			255,403			255,745			245,394			243,723
Shareholders’ equity		34,992			35,177			36,392			36,469			35,769

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)

	March 31,			March 31,
	2006			2005
ASSETS
Cash and cash equivalents
Cash and due from banks	$	10,267,739		$	10,515,412
Interest-earning deposits in other banks		47,167			9,619
Federal funds sold		0			0
Total cash and cash equivalents		10,314,906			10,525,031
Securities
Available-for-sale, at fair-value		75,856,687			66,838,272
Restricted stock, at cost		2,984,900			2,817,300
Total securities		78,841,587			69,655,572
Loans		221,123,243			224,107,821
Less allowance for loan losses		2,470,768			2,410,053
Net loans		218,652,475			221,697,768
Loans held for sale		242,212			0
Premises and equipment, net		7,587,163			7,875,469
Accrued interest receivable and other assets		3,138,328			2,911,552
TOTAL ASSETS	$	318,776,671		$	312,665,392
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Nontinterest-bearing	$	36,938,182		$	34,951,634
Interest-bearing		210,106,032			208,771,128
Total deposits		247,044,214			243,722,762
Securities sold under repurchase agreements		15,307,224			10,944,852
Federal Home Loan Bank borrowings		19,852,923			20,793,057
Accrued interest payable and other liabilities		1,580,626			1,435,227
Total liabilities		283,784,987			276,895,898
Shareholders’ equity
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,667,786 shares		16,673,667			16,673,667
Additional paid-in capital		6,416,440			6,413,915
Retained earnings		15,115,371			13,654,775
Treasury stock at cost - 100,381 shares in 2006 and 22,818 shares in 2005		(2,322,410	)		(626,934	)
Accumulated other comprehensive loss		(891,384	)		(345,929	)
Total shareholders’ equity		34,991,684			35,769,494
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	318,776,671		$	312,665,392

CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended March 31
	2006		2005		2004
Interest and dividend income:
Loans, including fees	$	3,822,504	$	3,285,392	$	2,992,946
Taxable securities		777,800		519,329		271,471
Nontaxable securities		101,823		168,788		400,618
Other		6,592		670		2,998
Total interest and dividend income		4,708,719		3,974,179		3,668,033
Interest expense:
Deposits		1,166,920		868,997		834,830
Other		247,525		176,478		137,418
Total interest expense		1,414,445		1,045,475		972,248
Net interest income		3,294,274		2,928,704		2,695,785
Provision for loan losses		32,000		105,999		94,000
Net interest income after provision for loan losses		3,262,274		2,822,705		2,601,785
Non-interest income
Service charges on deposits accounts		315,086		212,555		182,415
Merchant fees		6,546		3,302		42,574
Trust services		92,242		117,151		93,642
Securities gains		0		247,047		25,860
Gain on sale of loans		1,586		4,113		1,971
Other		194,983		196,089		152,572
Total non-interest income		610,443		780,257		499,034
Non-interest expenses
Salaries and employee benefits		1,491,005		1,402,464		1,259,139
Occupancy expense		171,213		158,778		162,178
Equipment expense		136,136		123,488		125,640
Franchise tax expense		109,200		104,923		101,856
Professional and director fees		174,021		156,475		186,331
Other expenses		666,236		731,021		679,224
Total non-interest expenses		2,747,811		2,677,149		2,514,368
Income before income tax		1,124,906		925,813		586,451
Federal income tax provision		351,000		259,000		65,000
Net income	$	773,906	$	666,813	$	521,451
Net income per share
Basic	$	0.30	$	0.25	$	0.20
Diluted	$	0.30	$	0.25	$	0.20

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