CSB Bancorp (CSBB) 8-K CSB Bancorp, Inc. Reports 15.4% Increase In 2007 Earnings Per Share

Exhibit 99.1

CSB BANCORP, INC. REPORTS 15.4% INCREASE IN 2007 EARNINGS PER SHARE

Fourth Quarter and Calendar Year Highlights

	Quarter Ended			Full Year Ended
	December 31, 2007			December 31, 2007
Diluted earnings per share	$	.35		$	1.42
Net Income	$	880,000		$	3,514,000
Return on average common equity		9.54	%		9.82	%
Return on average assets		1.05	%		1.07	%

Millersburg, Ohio — January 29, 2008 — CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced fourth quarter 2007 net income of $880 thousand, or $.35 per basic and diluted share, as compared to $846 thousand, or $.34 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 9.54% and 1.05%, respectively, compared with 9.65% and 1.05% for the fourth quarter of 2006.

For the full year of 2007, the Company reported net income of $3.51 million, or $1.42 per diluted share, up from $3.11 million, or $1.23 per diluted share in 2006. Full year ROE and ROA were 9.82% and 1.07%, respectively, compared to 8.95% and .97% in 2006.

“These fourth quarter and year-end results reflect our continued focus on delivering consistently higher returns to our shareholders, said Eddie Steiner, President and CEO. “We continue to grow our balance sheet and earnings while controlling operating expenses in a challenging banking environment and time of general economic uncertainty. Our net interest margin of 4.34% for the quarter and 4.35% for the year has been maintained without shifting to higher credit risk profiles within our investment or loan portfolios.”

Revenue, defined as net interest income on a fully tax-equivalent basis plus non-interest income net of securities transactions, totaled $4.1 million for the fourth quarter of 2007 compared with $4.0 million in the prior-year fourth quarter, an increase of 3.1%. Revenue increased 2.9% for the full year of 2007 to $16.5 million, as compared to $16.0 million in 2006.

The Company’s fourth quarter efficiency ratio, defined as operating expenses divided by revenue, was 65.4% as compared to same quarter results in the prior year of 64.5%. For the full year of 2007, the efficiency ratio declined (improved) to 64.9% versus the prior year’s 68.1%.

Non-interest expense totaled $2.7 million during the quarter, an increase of $117 thousand, or 4.5%, from fourth quarter 2006. For the full year ended December 31, 2007, non-interest expense declined $214 thousand, or 2.0% versus the prior full year. Prior year non-interest expense included a pre-tax charge of $237 thousand from an isolated irregularity regarding cash assets, of which all but $50,000 deductible was recovered under an insurance claim. Without the prior year irregularity charge, current year non-interest expenses would have increased by $23 thousand, or 0.2%.

Federal income tax expense was $420 thousand for fourth quarter 2007, compared to $398 thousand for the same quarter in 2006. Full year income tax of $1.7 million for 2007 reflects an effective tax rate of 32.3% compared to an effective tax rate of 31.5% in 2006. The increase in the effective tax rate for 2007 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 2006 and 2007.

Average deposit balances grew by $2.6 million during the fourth quarter, an increase of 1.0% over third quarter 2007. For the year-ended December 31, 2007, average deposit balances increased $5.7 million or 2.3% above the prior year average.

Total assets averaged $332.2 million during the quarter, an increase of $11.8 million, or 3.7% from the same quarter in the prior year. Average loan balances of $249.4 million reflect an increase of $19.4 million, or 8.4%, over fourth quarter prior year, while average securities balances decreased $7.8 million, or 10.9% as compared to fourth quarter 2006.

Assets totaled $350 million at year-end, up $23 million, or 7.0% from December 31, 2006. Year-end loans totaled $257 million, up $24 million, or 10.4%, versus the end of 2006. The Company funded some of its loan growth through cash flow from maturing investments, but also increased total investment securities held at year-end through a $15 million matched leverage investment strategy implemented during the fourth quarter. As a result, year-end securities investment balances of $75 million reflect an increase of $4.3 million, or 6.1% over year-end 2006.

Within the loan category, commercial loans including commercial real estate increased $19.7 million, or 14.6% over the prior year-end, residential mortgage balances grew $5.0 million, or 7.5% during the

year, and home equity balances increased $1.0 million, or 5.4%. Consumer installment loan and credit card balances declined by $1.7 million, or 15.7% during the year.

As of December 31, 2007, nonperforming assets totaled $.67 million, or .26% of period-end loans plus other real estate, compared with $1.51 million, or .65%, at the prior year-end. Net charge-offs for the quarter totaled $87 thousand, or an annualized rate of .14% of average total loans. For the full year of 2007, net charge-offs totaled $493 thousand or .20% of average total loans as compared to net charge-offs of $140 thousand or .06% during 2006.

The Company’s allowance for loan losses at December 31, 2007 was 1.01% of period end loans and the Company funded $119 thousand in loan loss provision during the fourth quarter. The ratio of allowance for loan losses to nonperforming loans stood at 453% at year-end. Commenting on the Company’s credit quality, Mr. Steiner noted, “While deteriorating credit quality has been a major concern in the broader economy, we have been pleased that no significant degradation in the quality of our loan portfolio has surfaced in the past year. We believe the loan loss reserve is appropriately funded for our current portfolio risk and loan charge-offs remain at modest levels.”

Liabilities totaled $314 million at December 31, 2007, up $21.8 million or 7.5% from the prior year-end. Deposit balances totaled $259 million at year-end, a decrease of $0.8 million, or 0.3% from the prior year-end total. Within the deposit category, non interest-bearing account balances increased $1.6 million, or 3.6%. Total interest-bearing checking, money market and traditional savings balances were virtually identical to year ago levels, while time deposits declined $2.4 million, or 1.9% from the prior year balance. In addition to the changes in year-end deposit balances, securities sold under repurchase agreement were $0.4 million, or 1.8%, below prior year-end balances. These agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts.

Shareholders’ equity totaled $36.3 million on December 31, 2007 with 2.4 million common shares outstanding at year-end. The Company’s capital position remains strong, with tangible equity to assets at 10.4% on December 31, 2007, compared to 10.7% on December 31, 2006. The Company declared a common dividend of $.18 per share during the quarter, a $.02 increase from the prior-year quarter. Total dividends declared during 2007 were $0.72 per share, a 12.5% increase above prior year dividends.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $350 million as of December 31, 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 located 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			2007			2007			2006			2007			2006
EARNINGS	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			12 months			12 months
Net interest income FTE (a)	$	3,437		$	3,426		$	3,313		$	3,294		$	3,354		$	13,470		$	13,377
Provision for loan losses		119			151			124			78			80			472			302
Other income		725			762			902			646			614			3,035			2,592
Other expenses		2,713			2,722			2,647			2,619			2,596			10,701			10,915
FTE adjustment (a)		31			36			38			39			48			144			210
Net income		880			863			956			815			846			3,514			3,110
Diluted EPS		0.35			0.35			0.39			0.33			0.34			1.42			1.23
PERFORMANCE RATIOS
Return on average assets (ROA)		1.05	%		1.04	%		1.17	%		1.02	%		1.05	%		1.07	%		0.97	%
Return on average common equity (ROE)		9.54	%		9.55	%		10.85	%		9.37	%		9.65	%		9.82	%		8.95	%
Net interest margin FTE (a)		4.34	%		4.37	%		4.30	%		4.40	%		4.40	%		4.35	%		4.45	%
Efficiency ratio		65.36	%		65.00	%		62.88	%		66.47	%		64.50	%		64.90	%		68.11	%
Number of full-time equivalent employees		127			135			128			124			126
MARKET DATA
Book value/common share	$	14.82		$	14.60		$	14.26		$	14.18		$	14.03
Period-end common share mkt value		17.75			17.00			17.75			17.57			19.00
Market as a % of book		119.76	%		117.42	%		124.48	%		123.94	%		135.52	%
PE ratio		12.68			12.14			11.38			13.31			13.97			12.50			15.45
Cash dividends/common share	$	0.18		$	0.18		$	0.18		$	0.18		$	0.16		$	0.72		$	0.64
Common stock dividend payout ratio		51.43	%		51.43	%		46.15	%		54.55	%		47.06	%
Average basic common shares		2,455,938			2,462,885			2,461,918			2,487,087			2,499,356			2,467,110			2,526,914
Average diluted common shares		2,456,250			2,462,885			2,463,240			2,487,087			2,503,056			2,467,110			2,532,592
Period end common shares outstanding		2,447,624			2,462,880			2,462,888			2,462,931			2,499,181
Common shares repurchased		15,216			8			43			36,290			295			51,557			79,318
Common stock market capitalization	$	43,445		$	42,209		$	43,716		$	43,274		$	47,484
ASSET QUALITY
Gross charge-offs	$	153		$	33		$	379		$	47		$	107		$	612		$	310
Net charge-offs		87			23			353			30			10			493			140
Allowance for loan losses		2,586			2,554			2,426			2,655			2,607
Nonperforming assets (NPAs)		673			1,092			1,635			1,585			1,509
Net charge-off/average loans ratio		0.14	%		0.04	%		0.59	%		0.05	%		0.02	%		0.20	%		0.06	%
Allowance for loan losses/period-end loans		1.01			1.04			1.00			1.13			1.12
NPAs/loans and other real estate		0.26			0.44			0.67			0.67			0.65
Allowance for loan losses/nonperforming loans		452.77			233.80			152.99			172.89			172.81
CAPITAL & LIQUIDITY
Period-end tangible equity to assets		10.36	%		10.89	%		10.72	%		10.83	%		10.72	%
Average equity to assets		11.01			10.88			10.82			10.91			10.86
Average equity to loans		14.67			14.65			14.72			15.11			15.13
Average loans to deposits		97.52			96.68			95.45			92.12			91.32
AVERAGE BALANCES
Assets	$	332,243		$	329,448		$	326,665		$	323,327		$	320,407		$	327,771		$	319,749
Earning assets		314,236			310,884			308,703			303,899			302,226			309,465			300,707
Loans		249,394			244,675			240,208			233,434			230,004			241,979			225,445
Deposits		255,729			253,073			251,660			253,398			251,875			253,221			247,543
Shareholders’ equity		36,582			35,852			35,348			35,269			34,789			35,772			34,766
ENDING BALANCES
Assets	$	350,270		$	330,121		$	327,465		$	322,358		$	327,240
Earning assets		331,267			311,860			309,484			305,129			307,682
Loans		256,659			245,626			242,485			235,818			232,432
Deposits		259,386			253,594			250,365			253,531			260,178
Shareholders’ equity		36,278			35,948			35,119			34,915			35,070

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,
	2007			2006
ASSETS
Cash and cash equivalents
Cash and due from banks	$	12,111,807		$	12,643,440
Interest-earning deposits in other banks		81,555			9,748
Federal funds sold		0			5,000,000
Total cash and cash equivalents		12,193,362			17,653,188
Securities
Available-for-sale, at fair-value		71,419,830			67,135,126
Restricted stock, at cost		3,105,900			3,105,900
Total securities		74,525,730			70,241,026
Loans		256,659,059			232,431,938
Less allowance for loan losses		2,585,901			2,607,118
Net loans		254,073,158			229,824,820
Premises and equipment, net		7,273,238			7,390,182
Accrued interest receivable and other assets		2,204,257			2,130,631
TOTAL ASSETS	$	350,269,745		$	327,239,847
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Nontinterest-bearing	$	46,038,976		$	44,455,131
Interest-bearing		213,347,066			215,722,541
Total deposits		259,386,042			260,177,672
Short-term borrowings		27,305,157			28,022,077
Other borrowings		26,023,888			2,499,399
Accrued interest payable and other liabilities		1,276,610			1,470,379
Total liabilities		313,991,697			292,169,527
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		6,452,319			6,427,765
Retained earnings		17,990,445			16,248,608
Treasury stock at cost - 220,162 shares in 2007 and 168,605 shares in 2006		(4,599,282	)		(3,696,102	)
Accumulated other comprehensive loss		(239,101	)		(583,618	)
Total shareholders’ equity		36,278,048			35,070,320
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	350,269,745		$	327,239,847

CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Quarter ended					Twelve months
	December 31,					December 31,
	2007		2006			2007		2006
Interest and dividend income:
Loans, including fees	$	4,592,088	$	4,349,050		$	18,025,190	$	16,643,728
Taxable securities		722,439		734,019			2,927,840		3,006,055
Nontaxable securities		53,490		85,467			251,551		382,479
Other		10,217		5,354			26,540		12,490
Total interest and dividend income		5,378,234		5,173,890			21,231,121		20,044,752
Interest expense:
Deposits		1,589,717		1,538,371			6,352,732		5,418,616
Other		382,462		329,354			1,552,007		1,458,675
Total interest expense		1,972,179		1,867,725			7,904,739		6,877,291
Net interest income		3,406,055		3,306,165			13,326,382		13,167,461
Provision for loan losses		118,560		80,000			472,100		301,667
Net interest income after provision for loan losses		3,287,495		3,226,165			12,854,282		12,865,794
Non-interest income
Service charges on deposits accounts		303,126		301,087			1,231,020		1,278,842
Trust services		185,842		147,804			730,715		540,299
Securities gains		11,400		(56,800	)		16,830		(56,800	)
Other		223,984		220,843			1,056,060		829,585
Total non-interest income		724,352		612,934			3,034,625		2,591,926
Non-interest expenses
Salaries and employee benefits		1,525,678		1,425,862			5,853,523		5,885,857
Occupancy expense		178,411		170,625			732,850		685,728
Equipment expense		132,032		122,191			504,356		498,517
Franchise tax expense		104,741		95,233			416,712		430,050
Professional and director fees		126,773		139,349			579,923		658,843
Other expenses		644,666		641,557			2,613,429		2,755,620
Total non-interest expenses		2,712,301		2,594,817			10,700,793		10,914,615
Income before income tax		1,299,546		1,244,282			5,188,114		4,543,105
Federal income tax provision		419,700		398,300			1,674,200		1,433,000
Net income	$	879,846	$	845,982		$	3,513,914	$	3,110,105
Net income per share
Basic	$	0.35	$	0.34		$	1.42	$	1.23
Diluted	$	0.35	$	0.34		$	1.42	$	1.23

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