CSB Bancorp (CSBB) 8-K CSB Bancorp, Inc. Reports Increase In Second Quarter Earnings

Exhibit 99.1

CSB BANCORP, INC. REPORTS INCREASE IN SECOND QUARTER EARNINGS

Second Quarter and Year-to-Date Highlights:

	Three Months Ended			Six Months Ended
	June 30, 2007			June 30, 2007
Diluted earnings per share	$	0.39		$	0.72
Net Income	$	956,000		$	1,771,000
Return on average common equity		10.85	%		10.11	%
Return on average assets		1.17	%		1.10	%

Millersburg, Ohio — July 20, 2007 — CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced second quarter net income of $956 thousand, or $0.39 per basic and diluted share, as compared to $677 thousand, or $0.27 per basic and diluted share for the same period in 2006.

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 10.85% and 1.17%, respectively, compared with 7.83% and .85% for the second quarter of 2006.

For the six months ended June 30, 2007, the Company reported net income of $1.77 million, or $0.72 per diluted share, up from $1.45 million, or $0.57 per diluted share in 2006. ROE and ROA for the six-month period were 10.11% and 1.10%, respectively, compared to 8.37% and .92% for the first half of 2006.

“We continue to work diligently at controlling costs, defending our net interest margin and seeking prudent growth in a very competitive market and difficult interest rate environment,” said Eddie Steiner, President and CEO. “Core operating expenses for the quarter, including operation of our new banking center, were .9% below the prior year level. Net interest margin of 4.30% for the quarter declined 12 basis points from second quarter 2006, although net interest income rose slightly due to higher loan volume.”

Revenue, defined as net interest income on a fully tax-equivalent basis plus non-interest income net of securities transactions, totaled $4.2 million in the second quarter, an increase of $150 thousand or 3.7% over the same period in the prior year. Current quarter revenue includes an insurance recovery of $187 thousand, relating to a claim from a cash shortage irregularity discovered and reported during the second quarter of 2006. Revenue increased 2.1%, or $170 thousand, in the first six months of 2007 to $8.2 million, as compared to $8.0 million during the first half of 2006.

The Company’s second quarter efficiency ratio, defined as operating expenses divided by revenue, was 62.8%, compared to last year’s same period ratio of 71.6%. Net of the prior year irregularity and current year insurance recovery, the efficiency ratio would have been 65.7% in second quarter 2007 versus 65.8% for the second quarter of 2006.

Non-interest expense totaled $2.6 million during the quarter, a decrease of $262 thousand, or 9.0%, from second quarter 2006. For the six months ended June 30, 2007, non-interest expense declined $350 thousand, or 6.2% versus the first six months of 2006. Prior year non-interest expense included a pre-tax charge of $237 thousand from an isolated and nonrecurring cash assets irregularity discovered and reported during the second quarter of 2006. Excluding the 2006 irregularity, non-interest expenses declined $25 thousand, or .9% in the second quarter of 2007 versus the same period in the prior year, and are $113 thousand, or 2.1%, lower for the six months ended June 30, 2007.

Federal income tax expense was $450 thousand for second quarter 2007, compared to $306 thousand for the same quarter in 2006. The effective tax rate for the quarter was 32.0% versus 31.1% in the prior year period. The increase in the effective tax rate was primarily the result of a lesser portion of tax-exempt securities in the Company’s investment portfolio due to a shifting return rate environment over the past year.

Mr. Steiner continued, “Our operating initiatives remain focused on simultaneously improving efficiencies and enhancing services to the markets and patrons we serve. During second quarter, we completely remodeled our South Clay Banking Center to provide full service banking to the entire Millersburg downtown market area and to accommodate the consolidation and closing of the 6 West Jackson Banking Center. We also completed an ATM and Debit Card system change, improving customer funds availability and fraud detection services while providing an updated look to our ATM service. The new Orrville Area Banking Center has been operational for one full quarter and is successfully generating new customer relationships in this growth market for our Company.”

Total assets averaged $327 million during the quarter, an increase of $5.4 million, or 1.7% from the same quarter in the prior year. Average loan balances of $240 million reflect an increase of $14.3 million, or 6.3%, over the prior year second quarter, while average securities balances of $68 million declined $7.6 million, or 10.0% as compared to second quarter 2006. The Company has funded a portion of its loan growth with proceeds from maturities in the investment securities portfolio.

Average commercial loan balances, including commercial real estate, increased $8.2 million, or 6.2% over the prior year second quarter. Average home mortgage and home equity balances grew $7.6 million, or 9.3% on a comparative quarter basis, while average consumer installment loan and credit card balances declined $1.6 million, or 14.8%.

As of June 30, 2007, nonperforming assets totaled $1.64 million, or .67% of period-end loans and other real estate, compared with $846 thousand, or .37%, at June 30, 2006. Net charge-offs for the quarter totaled $353 thousand, or an annualized rate of .59% of average total loans. For the six months ended June 30, 2007, net charge-offs totaled $383 thousand or .33% of average total loans as compared to net charge-offs of $125 thousand or .11% for the same period during 2006.

The Company’s allowance for loan losses at June 30, 2007 was 1.00% of period end loans and the Company funded $124 thousand in loan loss provision during the second quarter. The ratio of allowance for loan losses to nonperforming loans stood at 153% at June 30, 2007. Commenting on the Company’s credit quality, Mr. Steiner noted, “While loan charge-offs were somewhat higher during second quarter compared to the low levels we experienced in recent prior quarters, there does not appear to be any material elevation in the loan portfolio’s credit risk. We continue to refrain from participating in the sub-prime mortgage arena.”

Average deposit balances increased to $252 million at quarter-end, $7.6 million, or 3.1% above the prior year’s same quarter average. Within the deposit category, time deposits increased $7.4 million, or 6.2% above the average balance of the same quarter in the prior year, while non interest-bearing account balances increased $1.9 million, or 5.0%. Interest-bearing checking, money market and traditional savings average balances declined a combined $1.7 million, or 2.0% from year ago levels.

Shareholders’ equity totaled $35.1 million on June 30, 2007 with 2.5 million common shares outstanding at quarter-end. The Company’s capital position remains strong, with tangible equity to assets at 10.7% on June 30, 2007 as compared to 10.5% at June 30, 2006. The Company declared a common dividend of $0.18 per share during the quarter, a $0.02 increase from the prior-year quarter. Year-to-date dividends declared during 2007 of $0.36 per share represent a 12.5% increase above prior year-to-date dividends.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $327 million as of June 30, 2007. 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 ten banking centers in Holmes, Tuscarawas and Wayne counties and Trust offices 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
330-763-2873
paula.meiler@csb1.com

CSB BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS

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

	Quarters															YTD
	2007			2007			2006			2006			2006			2007			2006
EARNINGS	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			6 months			6 months
Net interest income FTE (a)	$	3,313		$	3,294		$	3,354		$	3,346		$	3,327		$	6,608		$	6,677
Provision for loan losses		124			78			80			75			115			202			147
Other income		902			646			614			676			732			1,548			1,303
Other expenses		2,647			2,619			2,596			2,704			2,908			5,266			5,616
FTE adjustment (a)		38			39			48			52			55			77			110
Net income		956			815			846			813			677			1,771			1,451
Diluted EPS		0.39			0.33			0.34			0.32			0.27			0.72			0.57
PERFORMANCE RATIOS
Return on average assets (ROA)		1.17	%		1.02	%		1.05	%		1.01	%		0.85	%		1.10	%		0.92	%
Return on average common equity (ROE)		10.85	%		9.37	%		9.65	%		9.42	%		7.83	%		10.11	%		8.37	%
Net interest margin FTE (a)		4.30	%		4.40	%		4.40	%		4.40	%		4.42	%		4.35	%		4.49	%
Efficiency ratio		62.80	%		66.47	%		65.42	%		67.23	%		71.64	%		64.57	%		70.38	%
Number of full-time equivalent employees		128			124			126			127			130
MARKET DATA
Book value/common share	$	14.26		$	14.18		$	14.03		$	13.82		$	13.41
Period-end common share mkt value		17.75			17.57			19.00			19.00			20.40
Market as a % of book		124.48	%		123.94	%		135.52	%		137.48	%		152.13	%
PE ratio		11.38			13.31			13.97			14.84			18.89
Cash dividends/common share	$	0.18		$	0.18		$	0.16		$	0.16		$	0.16		$	0.36		$	0.32
Common stock dividend payout ratio		46.15	%		54.55	%		47.06	%		50.00	%		59.26	%
Average basic common shares		2,461,918			2,487,087			2,499,356			2,505,785			2,531,456			2,474,936			2,551,661
Average diluted common shares		2,463,240			2,487,087			2,503,056			2,507,934			2,535,021			2,475,000			2,555,449
Period end common shares outstanding		2,462,888			2,462,931			2,499,181			2,499,476			2,519,734
Common shares repurchased		43			36,290			295			20,258			47,672			36,333			58,766
Common stock market capitalization	$	43,716		$	43,274		$	47,484		$	47,490		$	51,403
ASSET QUALITY
Gross charge-offs	$	379		$	47		$	107		$	23		$	145		$	426		$	180
Net charge-offs		353			30			10			5			118			383			125
Allowance for loan losses		2,426			2,655			2,607			2,537			2,467
Nonperforming assets (NPAs)		1,635			1,585			1,509			1,471			846
Net charge-off/average loans ratio		0.59	%		0.05	%		0.02	%		0.01	%		0.21	%		0.33	%		0.11	%
Allowance for loan losses/period-end loans		1.00			1.13			1.12			1.10			1.08
NPAs/loans and other real estate		0.67			0.67			0.65			0.64			0.37
Allowance for loan losses/nonperforming loans		152.99			172.89			172.81			177.26			291.47
CAPITAL & LIQUIDITY
Period-end tangible equity to assets		10.72	%		10.83	%		10.72	%		10.79	%		10.53	%
Average equity to assets		10.82			10.91			10.86			10.70			10.79
Average equity to loans		14.72			15.11			15.13			14.97			15.35
Average loans to deposits		95.45			92.12			91.32			93.01			92.57
AVERAGE BALANCES
Assets	$	326,665		$	323,327		$	320,407		$	320,477		$	321,299		$	324,556		$	319,066
Earning assets		308,703			303,899			302,226			301,395			301,956			306,313			299,582
Loans		240,208			233,434			230,004			229,042			225,939			236,839			221,300
Deposits		251,660			253,398			251,875			246,258			244,082			252,025			246,002
Shareholders’ equity		35,348			35,269			34,789			34,298			34,673			35,310			34,976
ENDING BALANCES
Assets	$	327,465		$	322,358		$	327,240		$	320,227		$	320,899
Earning assets		309,484			305,129			307,682			302,362			300,751
Loans		242,485			235,818			232,432			229,832			228,111
Deposits		250,365			253,531			260,178			249,605			242,823
Shareholders’ equity		35,119			34,915			35,070			34,553			33,799

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,
	2007			2006
ASSETS
Cash and cash equivalents
Cash and due from banks	$	10,253,372		$	11,990,923
Interest-earning deposits in other banks		136,457			9,964
Federal funds sold		0			350,000
Total cash and cash equivalents		10,389,829			12,350,887
Securities
Available-for-sale, at fair-value		63,757,288			69,256,199
Restricted stock, at cost		3,105,900			3,023,800
Total securities		66,863,188			72,279,999
Loans		242,484,648			228,110,564
Less allowance for loan losses		2,426,110			2,467,284
Net loans		240,058,538			225,643,280
Loans held for sale		0			0
Premises and equipment, net		7,527,394			7,486,661
Accrued interest receivable and other assets		2,626,158			3,137,890
TOTAL ASSETS	$	327,465,107		$	320,898,717
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Nontinterest-bearing	$	40,648,183		$	38,119,508
Interest-bearing		209,716,320			204,703,822
Total deposits		250,364,503			242,823,330
Short-term borrowings		33,257,047			39,889,842
Other borrowings		7,202,919			2,704,998
Accrued interest payable and other liabilities		1,521,503			1,681,549
Total liabilities		292,345,972			287,099,719
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		6,439,015			6,418,965
Retained earnings		17,132,359			15,388,867
Treasury stock at cost — 204,898 shares in 2007 and 148,053 shares in 2006		(4,348,856	)		(3,275,850	)
Accumulated other comprehensive loss		(777,050	)		(1,406,651	)
Total shareholders’ equity		35,119,135			33,798,998
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	327,465,107		$	320,898,717

CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Quarter ended				Six months
	June 30,				June 30,
	2007		2006		2007		2006
Interest and dividend income:
Loans, including fees	$	4,485,314	$	4,146,970	$	8,799,834	$	7,969,475
Taxable securities		734,392		759,167		1,484,449		1,536,966
Nontaxable securities		66,617		99,693		135,129		201,516
Other		2,186		247		15,380		6,839
Total interest and dividend income		5,288,509		5,006,077		10,434,792		9,714,796
Interest expense:
Deposits		1,600,736		1,272,915		3,154,099		2,439,835
Other		412,420		460,229		750,048		707,755
Total interest expense		2,013,156		1,733,144		3,904,147		3,147,590
Net interest income		3,275,353		3,272,933		6,530,645		6,567,206
Provision for loan losses		124,271		114,667		202,276		146,667
Net interest income after provision for loan losses		3,151,082		3,158,266		6,328,369		6,420,539
Non-interest income
Service charges on deposits accounts		316,887		337,640		592,359		652,726
Trust services		186,638		164,348		356,275		256,590
Securities gains		5,430				5,430
Other		392,937		230,218		593,929		393,333
Total non-interest income		901,892		732,206		1,547,993		1,302,649
Non-interest expenses
Salaries and employee benefits		1,434,823		1,435,548		2,842,003		2,921,503
Occupancy expense		181,720		167,530		366,273		338,743
Equipment expense		125,214		121,377		241,132		257,513
Franchise tax expense		104,741		112,192		206,079		221,392
Professional and director fees		164,760		174,431		306,142		348,452
Other expenses		635,249		897,041		1,304,754		1,528,326
Total non-interest expenses		2,646,507		2,908,119		5,266,383		5,615,929
Income before income tax		1,406,467		982,353		2,609,979		2,107,259
Federal income tax provision		450,000		305,700		839,000		656,700
Net income	$	956,467	$	676,653	$	1,770,979	$	1,450,559
Net income per share
Basic	$	0.39	$	0.27	$	0.72	$	0.57
Diluted	$	0.39	$	0.27	$	0.72	$	0.57

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