8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 20, 2009

CSB Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Ohio	0-21714	34-1687530
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

91 North Clay Street, P.O. Box 232, Millersburg, Ohio	44654
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (330) 674-9015

Not Applicable
(Former Name or former address if changed since last report)

Check the appropriate box below if the Form 8-k filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:

o Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 20, 2009 CSB Bancorp, Inc. issued a press release announcing its earnings for the three month period ended September 30, 2009. A copy of this press release and related financial tables are furnished herein as Exhibit 99.1. A copy of the shareholders’ brochure is furnished as Exhibit 99.2.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

99.1	Press release and Quarterly Report for CSB Bancorp, Inc. for the quarter ended September 30, 2009.
99.2	Shareholder brochure for CSB Bancorp, Inc. Quarterly Report for the quarter ended September 30, 2009.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CSB Bancorp, Inc.
	By:	/s/ Paula J. Meiler
		Paula J. Meiler
Date: October 20, 2009		Senior Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

CSB BANCORP, INC. REPORTS EARNINGS FOR THIRD QUARTER 2009

Third Quarter and Year to Date Highlights

	Quarter Ended			Nine Months Ended
	September 30, 2009			September 30, 2009
Diluted earnings per share	$	0.31		$	0.90
Net Income	$	858,000		$	2,460,000
Return on average common equity		7.49	%		7.33	%
Return on average assets		0.80	%		0.78	%

Millersburg, Ohio — October 20, 2009 — CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced third quarter 2009 net income of $858 thousand, or $.31 per basic and diluted share, as compared to $890 thousand, or $.37 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 7.49% and 0.80%, respectively, compared with 9.46% and 1.02% for the third quarter of 2008.

“Loan demand and economic activity remain soft in our market,” commented Eddie Steiner, CSB President and CEO. “The recessionary climate and high unemployment levels continue to exert pressure on credit quality and we are reserving for future loan losses that may exceed our historical norm. Our balance sheet remains strong, and while net income is 11% behind last year at this time, revenue is up 13.5% on a year to date basis. We also continued our company’s expansion this quarter by opening a second banking center in the Orrville market at the end of September.”

Total revenue amounted to $4.8 million during the quarter, compared with $4.1 million in the third quarter of 2008, an increase of 15.5%. Net interest income of $3.9 million increased $425 thousand or 12.3% over the same quarter of the prior year, and $33 thousand or 0.8% on a linked quarter basis.

Other income of $870 thousand reflects an increase of $196 thousand from the same quarter in the prior year. Gains on sales of secondary market mortgages account for $163 thousand of the difference, with the balance of the increase primarily related to an increase of $34 thousand in trust and brokerage revenues.

Non-interest expense totaled $3.2 million during the quarter, an increase of $526 thousand or 19.8% from third quarter 2008. The majority of the increased non-interest expense reflects the larger scale of the Company’s operations following the Indian Village acquisition during fourth quarter 2008. Higher FDIC insurance premiums assessed on all member financial institutions also accounted for $85 thousand of the quarterly difference. The third quarter ratio of operating expenses to revenue increased to 66.1% as compared to 64.2% in the same quarter of 2008. Absent the higher FDIC premiums, the ratio would have amounted to 64.3%.

Federal income tax expense was $396 thousand for third quarter 2009, reflecting an effective tax rate of 31.6%, compared to $454 thousand for the same quarter in 2008, or 33.8%. 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 third quarter 2009 totaled $425 million, an increase of $80 million or 23.1% over third quarter 2008. Gross loan balances of $315 million at September 30, 2009 decreased $3.2 million or 1.0% during the quarter. Average commercial loan balances, including commercial real estate, increased $830 thousand or 0.4%, while average balances for residential mortgage and home equity loans declined $3.5 million or 2.8% during the quarter, and installment and other consumer average loan balances decreased $619 thousand, or 6.9%. Much of the decline in home mortgage loan balances was attributable to consumer refinancing from existing in-house mortgages to the secondary mortgage market given favorable prevailing secondary market rates.

As of September 30, 2009, nonperforming assets totaled $4.5 million or 1.44% of period-end loans plus other real estate, compared with $4.1 million or 1.29% at June 30, 2009. The Company had a net recovery of charged-off loans during the quarter totaling $6 thousand. Year to date net charge-offs stand at $625 thousand, which equates to an annualized rate of 0.26% of average total loans.

The Company’s allowance for loan losses at September 30, 2009 was 1.17% of period end loans and the Company funded $293 thousand in loan loss provision during the quarter. The ratio of allowance for loan losses to nonperforming loans stood at 82% at quarter-end. Steiner remarked, “While our charge-off activity slowed during third quarter, nonperforming loan balances and total delinquencies both exhibited some growth. Consequently, we increased our provision for loan losses and continue to actively work with those credit relationships that are struggling to remain current.”

Average deposit balances declined $4.3 million, or 1.4% during the quarter to $301 million. Within the deposit category, average balances for non interest-bearing accounts increased $436 thousand or 1.0%, while interest bearing checking, money market and savings average balances decreased $1.3 million or 1.3% during the quarter and average time deposit balances declined $3.4 million, or 2.1%. Most of the decline in time deposit balances occurred with maturities of brokered CD’s acquired as part of last year’s Indian Village transaction, as the company’s present funding strategy does not rely on such products.

Short-term and other borrowings amounted to $76.9 million as of September 30, an increase of $1.7 million or 2.3% from June 30, with the increase attributable to repurchase agreement balances maintained with customers of the company.

Shareholders’ equity totaled $45.6 million on September 30, 2009 with 2.7 million common shares outstanding and a tangible equity to assets ratio of 10.26% at quarter-end.

The Company declared a common dividend of $.18 per share during the quarter. Steiner concluded by saying, “CSB has continued its attractive quarterly dividend level throughout the past two and a half years while maintaining its strong balance sheet and core revenue generation. The company remains well positioned to meet the banking needs in our markets with strength and stability.”

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $427 million as of September 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 fourteen banking centers in Holmes, Tuscarawas, Wayne and Stark 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
	2009			2009			2009			2008			2008			2009			2008
EARNINGS	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			9 months			9 months
Net interest income FTE (a)	$	3,920		$	3,884		$	3,940		$	3,812		$	3,473		$	11,744		$	10,197
Provision for loan losses		293			394			241			71			107			928			262
Other income		870			780			796			724			674			2,446			2,309
Other expenses		3,188			3,210			3,129			3,303			2,663			9,527			8,008
FTE adjustment (a)		56			52			46			39			34			154			92
Net income		858			706			896			767			890			2,460			2,770
Diluted EPS		0.31			0.26			0.33			0.29			0.37			0.90			1.14
PERFORMANCE RATIOS
Return on average assets (ROA)		0.80	%		0.67	%		0.86	%		0.76	%		1.02	%		0.78	%		1.08	%
Return on average common equity (ROE)		7.49	%		6.32	%		8.20	%		7.40	%		9.46	%		7.33	%		9.91	%
Net interest margin FTE (a)		3.84	%		3.88	%		3.99	%		3.98	%		4.19	%		3.90	%		4.15	%
Efficiency ratio		66.10	%		68.80	%		67.73	%		72.56	%		64.19	%		67.53	%		63.85	%
Number of full-time equivalent employees		146			141			139			144			124
MARKET DATA
Book value/common share	$	16.67		$	16.34		$	16.23		$	15.89		$	15.49
Period-end common share mkt value		15.20			16.00			14.00			15.00			15.25
Market as a % of book		91.18	%		97.92	%		86.26	%		94.40	%		98.45	%
PE ratio		12.77			12.80			10.37			10.49			10.23
Cash dividends/common share	$	0.18		$	0.18		$	0.18		$	0.18		$	0.18		$	0.54		$	0.54
Common stock dividend payout ratio		58.06	%		69.23	%		54.55	%		62.07	%		48.65	%
Average basic common shares		2,734,799			2,734,799			2,734,799			2,629,394			2,422,014			2,734,799			2,433,094
Average diluted common shares		2,734,799			2,734,799			2,734,799			2,629,394			2,422,014			2,734,799			2,433,094
Period end common shares outstanding		2,734,799			2,734,799			2,734,799			2,734,799			2,421,983
Common shares repurchased		0			0			0			0			67			0			25,641
Common stock market capitalization	$	41,569		$	43,757		$	38,287		$	41,022		$	36,935
ASSET QUALITY
Gross charge-offs	$	82		$	431		$	290		$	47		$	52		$	803		$	107
Net charge-offs (recoveries)		(6	)		398			233			(84	)		44			625			67
Allowance for loan losses		3,697			3,398			3,402			3,394			2,781
Nonperforming assets (NPAs)		4,545			4,123			4,182			2,722			577
Net charge-off/average loans ratio		(0.01	)%		0.50	%		0.30	%		(0.11	)%		0.07	%		0.26	%		0.04	%
Allowance for loan losses/period-end loans		1.17			1.07			1.07			1.07			1.08
NPAs/loans and other real estate		1.44			1.29			1.31			0.86			0.23
Allowance for loan losses/nonperforming loans		82.05			83.47			82.51			124.69			481.98
CAPITAL & LIQUIDITY
Period-end tangible equity to assets		10.26	%		10.16	%		10.09	%		9.82	%		10.91	%
Average equity to assets		10.68			10.56			10.50			10.71			10.84
Average equity to loans		14.38			14.06			13.91			13.74			14.74
Average loans to deposits		105.15			104.76			105.76			102.72			102.86
AVERAGE BALANCES
Assets	$	425,439		$	423,767		$	421,694		$	400,873		$	345,481		$	423,601		$	343,205
Earning assets		404,629			401,966			400,356			381,011			330,219			402,465			327,881
Loans		316,149			319,421			318,325			293,714			254,104			317,957			252,597
Deposits		300,652			304,910			300,993			285,926			247,040			302,183			247,928
Shareholders’ equity		45,449			44,918			44,294			41,251			37,446			44,862			37,320
ENDING BALANCES
Assets	$	427,391		$	422,416		$	422,390		$	424,657		$	343,743
Earning assets		406,054			401,558			402,011			402,225			328,812
Loans		314,717			317,880			319,425			316,290			256,343
Deposits		302,898			300,513			304,591			305,453			245,953
Shareholders’ equity		45,580			44,678			44,392			43,468			37,512

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)

	September 30,			September 30,
	2009			2008
ASSETS
Cash and cash equivalents
Cash and due from banks	$	8,681,607		$	8,592,417
Interest-earning deposits in other banks		13,258,887			30,835
Federal funds sold		0			1,800,000
Total cash and cash equivalents		21,940,494			10,423,252
Securities
Available-for-sale, at fair-value		72,614,370			67,417,273
Restricted stock, at cost		5,463,100			3,220,800
Total securities		78,077,470			70,638,073
Loans held for sale		100,000			0
Loans		314,717,245			256,343,002
Less allowance for loan losses		3,696,698			2,780,578
Net loans		311,020,547			253,562,424
Goodwill and core deposit intangible		1,908,399			0
Bank owned life insurance		2,827,263			0
Premises and equipment, net		8,545,999			7,073,444
Accrued interest receivable and other assets		2,970,391			2,045,872
TOTAL ASSETS	$	427,390,563		$	343,743,065
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	46,366,578		$	44,217,085
Interest-bearing		256,531,562			201,735,720
Total deposits		302,898,140			245,952,805
Short-term borrowings		27,056,769			24,756,834
Other borrowings		49,857,842			33,681,998
Accrued interest payable and other liabilities		1,997,905			1,839,484
Total liabilities		381,810,656			306,231,121
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		9,992,329			6,463,569
Retained earnings		20,707,496			19,449,252
Treasury stock at cost - 245,803 shares in 2009 and 2008		(5,014,541	)		(5,014,541	)
Accumulated other comprehensive income (loss)		1,265,856			(60,003	)
Total shareholders’ equity		45,579,907			37,511,944
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	427,390,563		$	343,743,065

CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Quarter ended						Nine months ended
	September 30,						September 30,
	2009			2008			2009		2008
Interest and dividend income:
Loans, including fees	$	4,565,910		$	4,073,175		$	13,768,953	$	12,503,136
Taxable securities		776,163			800,062			2,461,570		2,377,551
Nontaxable securities		84,281			60,088			232,203		159,510
Other		7,978			32,992			16,835		102,863
Total interest and dividend income		5,434,332			4,966,317			16,479,561		15,143,060
Interest expense:
Deposits		1,055,241			1,068,797			3,353,042		3,662,709
Other		514,514			457,693			1,536,315		1,374,994
Total interest expense		1,569,755			1,526,490			4,889,357		5,037,703
Net interest income		3,864,577			3,439,827			11,590,204		10,105,357
Provision for loan losses		292,952			107,031			928,092		261,740
Net interest income after provision for loan losses		3,571,625			3,332,796			10,662,112		9,843,617
Non-interest income
Service charges on deposits accounts		313,269			326,006			930,779		952,414
Trust services		172,554			138,128			406,930		489,360
Securities gains (losses)		(33,613	)		(35,000	)		81,890		(35,000	)
Gain on sale of loans		172,466			9,475			356,925		281,309
Other		245,435			235,003			669,841		620,961
Total non-interest income		870,111			673,612			2,446,365		2,309,044
Non-interest expenses
Salaries and employee benefits		1,747,309			1,532,758			5,151,886		4,596,823
Occupancy expense		265,563			183,735			739,725		566,531
Equipment expense		131,478			122,541			403,175		367,312
Franchise tax expense		135,000			108,560			371,370		323,370
Professional and director fees		157,137			95,454			485,453		375,353
FDIC deposit insurance		105,100			20,000			496,300		34,585
Amortization of intangible assets		16,227			0			48,772		0
Other expenses		629,899			598,796			1,830,180		1,743,601
Total non-interest expenses		3,187,713			2,661,844			9,526,861		8,007,575
Income before income tax		1,254,023			1,344,564			3,581,616		4,145,086
Federal income tax provision		395,700			454,000			1,121,300		1,375,000
Net income	$	858,323		$	890,564		$	2,460,316	$	2,770,086
Net income per share
Basic	$	0.31		$	0.37			0.90	$	1.14
Diluted	$	0.31		$	0.37			0.90	$	1.14

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

EX-99.2

Exhibit 99.2

FINANCIAL HIGHLIGHTS

(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

AT OR FOR THE NINE MONTHS ENDED SEPTEMBER 30 2009 2008

Assets $427,391 $343,743

Net loans $311,021 $253,562

Securities $ 78,077 $ 70,638

Deposits $302,898 $245,953

Shareholders’ equity $ 45,580 $ 37,512

Net income $ 2,460 $ 2,770

Earnings per share $ 0.90 $ 1.14

Book value per outstanding share $ 16.67 $ 15.49

STOCK PERFORMANCE & DIVIDENDS CASH QUARTER            TRADE PRICE            CLOSING            DIVIDEND ENDING            HIGH            LOW            PRICE            DECLARED

12/31/07 17.75 15.40 17.75 0.18

3/31/08 17.90 15.75 16.14 0.18

6/30/08 18.00 15.75 15.75 0.18

9/30/08 16.25 14.40 15.25 0.18

12/31/08 16.00 14.00 15.00 0.18

3/31/09 14.50 12.25 14.00 0.18

6/30/09 17.00 13.26 16.00 0.18

9/30/09 16.00 14.25 15.20 0.18

KEY RATIOS

AT OR FOR THE NINE MONTHS ENDED SEPTEMBER 30 2009 2008

Return on average assets 0.78% 1.08%

Return on average equity 7.33% 9.91%

Net interest margin (tax equivalent) 3.90% 4.15%

Loans to deposits 102.71% 103.09%

Allowance for loan loss to total loans 1.17% 1.08%

Shareholders’ equity to total assets 10.66% 10.91%

Efficiency ratio 67.53% 64.03%

COMMON STOCK PERFORMANCE

QUARTER ENDING

DIRECTORS

Robert K. Baker

Ronald E. Holtman

J. Thomas Lang

Daniel J. Miller

Jeffery A. Robb, Sr.

Eddie L. Steiner

John R. Waltman Chairman

EXECUTIVE OFFICERS

Eddie L. Steiner President and Chief Executive Officer

Rick L. Ginther President, The Commercial & Savings Bank

Paul D. Greig Chief Operations/Information Officer

Paula J. Meiler Chief Financial Officer

ADDITIONAL STOCK INFORMATION

STOCK LISTING Common: Symbol — CSBB.OB

STOCK TRANSFER Registrar & Transfer Company Attn: Investor Relations 10 Commerce Drive Cranford, NJ 07016 (800) 368-5948

Copies of CSB Bancorp, Inc. S.E.C. Filings may be obtained by writing:

Paula J. Meiler, CFO CSB Bancorp, Inc. 91 North Clay Street Millersburg, OH 44654 (330) 674-9015 or (800) 654-9015

“Remember to call CSB for all your financial needs, whether to borrow, save or invest.”

DEAR FELLOW SHAREHOLDER

On behalf of the Board of Directors, we are pleased to enclose a third quarter dividend of $0.18 per share, equaling the quarterly dividend amount of the past two and one half years.

Net income for the third quarter was $858 thousand, a decrease of $32 thousand from the same quarter a year ago. For the nine months ended September 30, net income totaled $2.46 million compared to $2.77 million last year. The year to date reduction is primarily due to increased loan charge-offs and higher FDIC insurance premiums assessed on the banking industry.

The Company’s balance sheet remains strong despite the very challenging economic conditions that currently prevail both nationally and locally. CSB’s book value per share has increased by 4.9% during the first nine months of 2009, and our tangible equity to assets ratio stands at 10.26%. We continue to closely monitor and manage credit quality within the loan portfolio. Our charge-off activity slowed during the third quarter; however, nonperforming loan balances and total delinquencies grew during the period. Accordingly, we increased our provision for loan losses and the allowance now stands at 1.17% of total loans.

While there are signs the recession may have bottomed out, recovery to more normalized economic activity is likely to take some time, and will not occur at identical rates for all business and consumer activities. Job recovery will be a key factor in how long it takes for the economy to reach more normalized levels. Unemployment is high in our primary service area, averaging above 10% during 2009, double the average of the past nine years. Consequently, loan demand has been somewhat muted, with the exception of home mortgage refinancing activity created by attractive interest rates.

In late September, we opened a banking center on West High Street in Orrville, Ohio. CSB now has fourteen banking centers in Holmes, Tuscarawas, Wayne and Stark counties, as well as our Trust office in Wooster. We will continue to seek controlled growth opportunities in our market, using our commitment of providing excellent customer service and financial products as our primary way to attract and retain customer relationships.

Thank you for your continuing support as a shareholder of CSB. We always welcome your input, and if you have any questions about this report please do not hesitate to contact us.

Sincerely,

EDDIE STEINER President and CEO CSB Bancorp, Inc.

JOHN WALTMAN Chairman CSB Bancorp, Inc.

CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)

| |

(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) SEPTEMBER 30 2009 2008

ASSETS:

Cash and due from banks $ 21,941 $ 8,623

Federal funds sold 0 1,800

Securities 78,077 70,638

Net loans 311,021 253,562

Premises & equipment, net 8,546 7,074

Other assets 7,806 2,046

—

TOTAL ASSETS $427,391 $343,743

===

LIABILITIES:

Deposits $302,898 $245,953

Securities sold under agreements to repurchase 27,057 22,757

Short-term borrowings 0 2,000

Other borrowings 49,858 33,682

Other liabilities 1,998 1,839

—

TOTAL LIABILITIES $381,811 $306,231

—

SHAREHOLDERS’ EQUITY:

Common stock $ 18,629 $ 16,674

Additional paid-in capital 9,992 6,464

Retained earnings 20,708 19,449

Treasury stock (5,015) (5,015)

Accumulated other comprehensive income (loss) 1,266 (60)

—

TOTAL SHAREHOLDERS’ EQUITY $ 45,580 $ 37,512

—

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $427,391 $343,743

===

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

| | | | (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED            NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2009 2008 2009 2008

INTEREST INCOME:

Interest and fees on loans $4,566 $4,073 $13,769 $12,503

Interest on securities 860 860 2,693 2,537

Other interest income 8 33 17 103

—

TOTAL INTEREST INCOME 5,434 4,966 16,479 15,143

—

INTEREST EXPENSE:

Interest on deposits 1,056 1,069 3,353 3,663

Other interest expense 514 457 1,536 1,375

—

TOTAL INTEREST EXPENSE 1,570 1,526 4,889 5,038

—

Net interest income 3,864 3,440 11,590 10,105

Provision for loan losses 293 107 928 262

—

Net interest income after provision for loan losses 3,571 3,333 10,662 9,843

Noninterest income 870 674 2,446 2,309

Noninterest expense 3,188 2,663 9,527 8,007

—

Net income before federal income taxes 1,253 1,344 3,581 4,145

Federal income tax provision 395 454 1,121 1,375

—

NET INCOME $ 858 $ 890 $ 2,460 $ 2,770

====

EARNINGS PER SHARE $ 0.31 $ 0.37 $ 0.90 $ 1.14

====