CSB Bancorp (CSBB) 8-K CSB Bancorp, Inc. Reports 12.8% Increase In 2006 Earnings Per Share

Exhibit 99.1

CSB BANCORP, INC. REPORTS 12.8% INCREASE IN 2006 EARNINGS PER SHARE

Fourth Quarter and Calendar Year Highlights

	Quarter Ended			Full Year Ended
	December 31, 2006			December 31, 2006
Diluted earnings per share	$	.34		$	1.23
Net Income	$	846,000		$	3,110,000
Return on average common equity		9.65	%		8.95	%
Return on average assets		1.05	%		.97	%

Millersburg, Ohio — January 26, 2007 — CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced fourth quarter net income of $846 thousand, or $.34 per basic and diluted share, as compared to $903 thousand, or $.35 per basic and diluted share for the same period in 2005.

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 9.65% and 1.05%, respectively, compared with 9.93% and 1.12% for the fourth quarter of 2005.

For the full year of 2006, the Company reported net income of $3.11 million, or $1.23 per diluted share, up from $2.87 million, or $1.09 per diluted share in 2005. Full year ROE and ROA were 8.95% and .97%, respectively, compared to 7.92% and .91% in 2005.

“During the fourth quarter, the Company continued to make progress in controlling operating costs while sustaining its income generating ability,” said Eddie L. Steiner, President and CEO. “Our efficiency ratio improved 154 basis points compared to the same quarter in the prior year. We view these operating efficiencies as fundamental to improved earnings. At the same time, we’ve been able to protect our net interest margin, which held steady in the fourth quarter at 4.40%, our eighth consecutive quarter above 4%. And while non-interest income of $614 thousand was 13% below the same quarter last year, more than half of this reduction resulted from a loss on sale of $4 million in U.S. Agency bonds which will be more than offset in the coming year with higher-yields

from replacement securities. The remainder of the fourth quarter’s lower non-interest income was attributable to reduced customer use of overdraft privilege services.”

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 fourth quarter of 2006 compared with $4.2 million in the prior-year fourth quarter, a decrease of 3.2%. Revenue increased 5.3% for the full year of 2006 to $16.0 million, as compared to $15.2 million in 2005.

Commenting on the Company’s operating initiatives, Mr. Steiner noted, “During the fourth quarter, we introduced Xpress Remote Deposit Capture, an electronic imaging service that provides our business customers the convenience of depositing checks electronically without coming to the bank. We also continued preparations for opening a new banking center near Orrville, Ohio in March 2007. These initiatives are examples of our commitment to enhancing customer service while simultaneously improving company-wide operating efficiencies.”

Mr. Steiner continued, “Our fourth quarter efficiency ratio, defined as operating expenses divided by revenue, was 65.4%, comparing very favorably to last year’s same period results of 67.0%. For the full year of 2006, we improved the ratio by 152 basis points to 68.4% versus the prior year’s 69.9% efficiency ratio.”

Non-interest expense totaled $2.6 million during the quarter, a decrease of $188 thousand, or 6.8%, from fourth quarter 2005. For the full year ended December 31, 2006, non-interest expense increased $112 thousand, or 1.0% versus the prior full year. The full year non-interest expense includes a pre-tax charge of $237 thousand from an isolated irregularity regarding cash assets. The irregularity was discovered, recorded and reported during the second quarter reporting period and remains the subject of an ongoing investigation. The Company’s insurance against this type of loss carries a $50 thousand deductible, and a loss claim is pending.

Federal income tax expense was $398 thousand for fourth quarter 2006, compared to $397 thousand for the same quarter in 2005. Full year income tax of $1.4 million for 2006 reflects an effective tax rate of 31.5% compared to an effective tax rate of 28.9% in 2005. The increase in the effective tax rate for 2006 was primarily the result of comparatively lower tax-free interest income due to sales and maturities of bonds within the Company’s tax-free investment portfolio during both 2005 and 2006.

Average deposit balances grew by $5.6 million in the fourth quarter, an increase of 2.3%, but remained 2.2% below the average of the fourth quarter in 2005. Commenting on the continuing competitive banking environment, Mr. Steiner noted, “Deposit growth and retention remain challenging issues for our Company and for the banking industry as a whole. While the strongly competitive environment is a somewhat limiting factor for organic growth, our combined average total deposit and repurchase agreement balances grew by 1.9% in 2006. We also sustained our loan growth in the fourth quarter, although

noting some deceleration in the growth rate with average loan balances increasing .4% over the prior quarter’s average balances.”

Total assets averaged $320.4 million during the quarter, a decline of $.8 million, or .2% from the same quarter in the prior year. Average loan balances of $230.0 million reflect an increase of $14.6 million, or 6.8%, over fourth quarter prior year, while average securities balances declined $14.5 million, or 16.8% as compared to fourth quarter 2005.

Assets totaled $327 million at year-end, up $6.4 million, or 2.0% from December 31, 2005. Year-end loans totaled $232 million, up $17.4 million, or 8.1%, versus the end of 2005. The Company funded some of its loan growth through cash flow from maturing investments, allowing total investment securities, to decline $11.0 million, or 13.5% as compared to the prior year-end.

Within the loan category, commercial loans including commercial real estate increased $5.6 million, or 4.6% over the prior year-end, construction loans increased $5.5 million, or 250%, residential mortgage balances grew $6.2 million, or 10.3% during the year, and home equity balances increased $1.0 million, or 5.4%. Consumer installment loan and credit card balances declined by $1.0 million, or 8.9% during the year.

As of December 31, 2006, nonperforming assets totaled $1.51 million, or .65% of period-end loans plus other real estate, compared with $1.24 million, or .58%, at the prior year-end. Net charge-offs for the quarter totaled $10 thousand, or an annualized rate of .02% of average total loans. For the full year of 2006, net charge-offs totaled $140 thousand or .06% of average total loans as compared to net charge-offs of $412 thousand or .19% during 2005.

The Company’s allowance for loan losses at December 31, 2006 was 1.12% of period end loans and the Company funded $80 thousand in loan loss provision during the fourth quarter. The ratio of allowance for loan losses to nonperforming loans stood at 173% at year-end. Commenting on the Company’s credit quality, Mr. Steiner noted, “We believe the loan loss reserve is appropriately funded for our current portfolio risk and loan charge-offs remain at modest levels.”

Liabilities totaled $292 million at December 31, 2006, up $6.4 million or 2.2% from the prior year-end. Deposit balances totaled $260 million at year-end, an increase of $4.8 million, or 1.9% above the prior year-end total. Within the deposit category, time deposits increased $8.6 million, or 7.4% above the prior year balance, while non interest-bearing account balances increased $2.6 million, or 6.3%. Interest-bearing checking, money market and traditional savings balances declined a combined $6.5 million, or 6.7% from year ago levels. In addition to the increase in year-end deposit balances, securities sold under repurchase agreement grew by $6.6 million, or 40% over the prior year-end balance. These agreements, while considered short-term borrowings, are primarily tied to customer deposit sweep accounts.

Shareholders’ equity totaled $35.1 million on December 31, 2006 with 2.5 million common shares outstanding at year-end. The Company’s capital position remains strong, with tangible equity to assets at 10.7% on December 31, 2006, compared to 11.0% on December 31, 2005. The Company declared a common dividend of $.16 per share during the quarter, a $.02 increase from the prior-year quarter. Total dividends declared during 2006 were $.64 per share, a 14% increase above prior year dividends.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $327 million as of December 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 Trust offices located in Millersburg and Wooster, Ohio. The Commercial and Savings Bank will be opening a new banking center near Orrville, in Wayne County, Ohio during March 2007.

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
	2006			2006			2006			2006			2005			2006			2005
EARNINGS	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			12 months			12 months
Net interest income FTE (a)	$	3,354		$	3,346		$	3,327		$	3,350		$	3,449		$	13,377		$	12,880
Provision for loan losses		80			75			115			32			—			302			283
Other income		614			676			732			570			707			2,592			2,581
Other expenses		2,596			2,704			2,908			2,707			2,783			10,915			10,803
FTE adjustment (a)		48			52			55			56			74			210			334
Net income		846			813			677			774			903			3,110			2,873
Diluted EPS		0.34			0.32			0.27			0.30			0.35			1.23			1.09
PERFORMANCE RATIOS
Return on average assets (ROA)		1.05	%		1.01	%		0.85	%		0.99	%		1.12	%		0.97	%		0.91	%
Return on average common equity (ROE)		9.65	%		9.42	%		7.83	%		8.89	%		9.93	%		8.95	%		7.92	%
Net interest margin FTE (a)		4.40	%		4.40	%		4.42	%		4.57	%		4.54	%		4.45	%		4.35	%
Efficiency ratio		65.42	%		67.23	%		71.64	%		69.06	%		66.96	%		68.35	%		69.87	%
Number of full-time equivalent employees		126			127			130			122			127
MARKET DATA
Book value/common share	$	14.03		$	13.82		$	13.41		$	13.63		$	13.64
Period-end common share mkt value		19.00			19.00			20.40			20.90			21.00
Market as a % of book		135.52	%		137.48	%		152.13	%		153.34	%		153.96	%
PE ratio		13.97			14.84			18.89			17.42			15.00			15.45			19.27
Cash dividends/common share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.14		$	0.64		$	0.56
Common stock dividend payout ratio		47.06	%		50.00	%		59.26	%		53.33	%		40.00	%
Average basic common shares		2,499,356			2,505,785			2,531,456			2,572,089			2,620,102			2,526,914			2,638,697
Average diluted common shares		2,503,056			2,507,934			2,535,021			2,576,094			2,623,684			2,532,592			2,642,301
Period end common shares outstanding		2,499,181			2,499,476			2,519,734			2,567,405			2,578,499
Common shares repurchased		295			20,258			47,672			11,094			66,439			79,318			66,469
Common stock market capitalization	$	47,484		$	47,490		$	51,403		$	53,659		$	54,148
ASSET QUALITY
Gross charge-offs	$	107		$	23		$	145		$	35		$	35		$	310		$	576
Net charge-offs		10			5			118			7			-1			140			412
Allowance for loan losses		2,607			2,537			2,467			2,471			2,445
Nonperforming assets (NPAs)		1,509			1,471			846			1,070			1,241
Net charge-off/average loans ratio		0.02	%		0.01	%		0.21	%		0.01	%		0.00	%		0.06	%		0.19	%
Allowance for loan losses/period-end loans		1.12			1.10			1.08			1.12			1.14
NPAs/loans and other real estate		0.65			0.64			0.37			0.48			0.58
Allowance for loan losses/nonperforming loans		172.81			177.26			291.47			368.80			305.13
CAPITAL & LIQUIDITY
Period-end tangible equity to assets		10.72	%		10.79	%		10.53	%		10.98	%		10.96	%
Average equity to assets		10.86			10.70			10.79			11.15			11.23
Average equity to loans		15.13			14.97			15.35			16.30			16.75
Average loans to deposits		91.32			93.01			92.57			87.36			83.60
AVERAGE BALANCES
Assets	$	320,407		$	320,477		$	321,299		$	316,806		$	321,205		$	319,749		$	316,612
Earning assets		302,226			301,395			301,956			297,178			301,615			300,707			296,405
Loans		230,004			229,042			225,939			216,609			215,379			225,445			222,432
Deposits		251,875			246,258			244,082			247,944			257,623			247,543			249,007
Shareholders’ equity		34,789			34,298			34,673			35,311			36,078			34,766			36,290
ENDING BALANCES
Assets	$	327,240		$	320,227		$	320,899		$	318,777		$	320,989
Earning assets		307,632			302,362			300,751			300,254			298,105
Loans		232,432			229,832			228,111			221,365			215,020
Deposits		260,178			249,605			242,823			247,044			255,403
Shareholders’ equity		35,070			34,553			33,799			34,992			35,177

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)

	December 31,			December 31,
	2006			2005
ASSETS
Cash and cash equivalents
Cash and due from banks	$	12,643,440		$	14,785,250
Interest-earning deposits in other banks		9,748			124,726
Federal funds sold		5,000,000			1,740,000
Total cash and cash equivalents		17,653,188			16,649,976
Securities
Available-for-sale, at fair-value		67,135,126			78,273,248
Restricted stock, at cost		3,105,900			2,947,000
Total securities		70,241,026			81,220,248
Loans		232,431,938			215,019,673
Less allowance for loan losses		2,607,118			2,445,494
Net loans		229,824,820			212,574,179
Premises and equipment, net		7,390,182			7,671,822
Accrued interest receivable and other assets		2,130,631			2,873,007
TOTAL ASSETS	$	327,239,847		$	320,989,232
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Nontinterest-bearing	$	44,455,131		$	41,807,069
Interest-bearing		215,722,541			213,595,648
Total deposits		260,177,672			255,402,717
Short-term borrowings		28,022,077			21,417,616
Other borrowings		2,499,399			8,067,840
Accrued interest payable and other liabilities		1,470,379			930,800
Total liabilities		292,169,527			285,818,973
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		6,427,765			6,413,915
Retained earnings		16,248,608			14,752,250
Treasury stock at cost - 168,605 shares in 2006 and 89,287 shares in 2005		(3,696,102	)		(2,086,686	)
Accumulated other comprehensive loss		(583,618	)		(582,887	)
Total shareholders’ equity		35,070,320			35,170,259
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	327,239,847		$	320,989,232

CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Quarter ended					Twelve months
	December 31,					December 31,
	2006			2005		2006			2005
Interest and dividend income:
Loans, including fees	$	4,349,050		$	3,785,850	$	16,643,728		$	14,343,888
Taxable securities		734,019			671,609		3,006,055			2,243,081
Nontaxable securities		85,467			137,997		382,479			624,911
Other		5,354			97,109		12,490			145,395
Total interest and dividend income		5,173,890			4,692,565		20,044,752			17,357,275
Interest expense:
Deposits		1,538,371			1,162,787		5,418,616			4,128,130
Other		329,354			155,279		1,458,675			683,566
Total interest expense		1,867,725			1,318,066		6,877,291			4,811,696
Net interest income		3,306,165			3,374,499		13,167,461			12,545,579
Provision for loan losses		80,000			0		301,667			282,664
Net interest income after provision for loan losses		3,226,165			3,374,499		12,865,794			12,262,915
Non-interest income
Service charges on deposits accounts		301,087			360,471		1,278,842			1,037,377
Trust services		147,804			133,411		540,299			484,468
Securities gains (losses)		(56,800	)		0		(56,800	)		247,047
Other		220,843			214,376		829,585			811,597
Total non-interest income		612,934			708,258		2,591,926			2,580,489
Non-interest expenses
Salaries and employee benefits		1,425,862			1,496,772		5,885,857			5,671,149
Occupancy expense		170,625			162,484		685,728			677,067
Equipment expense		122,191			139,044		498,517			524,112
Franchise tax expense		95,233			182,128		430,050			427,435
Professional and director fees		139,349			108,056		658,843			677,252
Other expenses		641,557			694,564		2,755,620			2,825,750
Total non-interest expenses		2,594,817			2,783,048		10,914,615			10,802,765
Income before income tax		1,244,282			1,299,709		4,543,105			4,040,639
Federal income tax provision		398,300			397,000		1,433,000			1,168,000
Net income	$	845,982		$	902,709	$	3,110,105		$	2,872,639
Net income per share
Basic	$	0.34		$	0.35	$	1.23		$	1.09
Diluted	$	0.34		$	0.35	$	1.23		$	1.09

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