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 16, 2007

CSB Bancorp, Inc.

(Exact name of registrant as specified in its charter)

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

TABLE OF CONTENTS

EX-99.1

EX-99.2

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 16, 2007 CSB Bancorp, Inc. issued a press release announcing its earnings for the three month period ended September 30, 2007. 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, 2007.
99.2	Shareholder brochure for CSB Bancorp, Inc. Quarterly Report for the quarter ended September 30, 2007.

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 16, 2007		Senior Vice President and     Chief Financial Officer

EX-99.1

Exhibit 99.1

CSB BANCORP, INC. REPORTS INCREASE IN THIRD QUARTER EARNINGS

Third Quarter and Year-to-Date Highlights:

	Three Months Ended			Nine Months Ended
	September 30, 2007			September 30, 2007
Diluted earnings per share	$	0.35		$	1.07
Net Income	$	863,000		$	2,634,000
Return on average common equity		9.55	%		9.92	%
Return on average assets		1.04	%		1.08	%

Millersburg, Ohio – October 16, 2007 – CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced third quarter net income of $863 thousand, or $0.35 per basic and diluted share, as compared to $813 thousand, or $0.32 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 9.55% and 1.04%, respectively, compared with 9.42% and 1.01% for the third quarter of 2006.

For the nine months ended September 30, 2007, the Company reported net income of $2.63 million, or $1.07 per diluted share, up from $2.26 million, or $0.89 per diluted share in 2006. ROE and ROA for the nine-month period were 9.92% and 1.08%, respectively, compared to 8.69% and .95% for the first nine months of 2006.

“We were able to maintain our net interest margin during the past quarter while achieving growth in loan and deposit balances,” commented Eddie Steiner, President and CEO. “We also continued our trend of improved operating efficiencies and the combined result was a solid quarter.”

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 third quarter, an increase of $162 thousand or 4.0% over the same period in the prior year. Revenue increased 2.8%, or $336 thousand, in the first nine months of 2007 to $12.3 million, as compared to $12.0 million during the first nine months of 2006.

The Company’s third quarter efficiency ratio, which measures operating expenses as a percentage of revenue, improved to 65.0% as compared to 67.2% in the third quarter of 2006. The year-to-date efficiency ratio of 64.7% also compares favorably to the 69.3% ratio for the first nine months of the prior year.

Non-interest expense totaled $2.7 million during the quarter, an increase of $18 thousand, or 0.7%, from third quarter 2006. For the nine months ended September 30, 2007, non-interest expense declined $331 thousand, or 4.0% as compared to the first nine months of 2006. The 2006 year-to-date non-interest expense included a pre-tax charge of $237 thousand from an isolated and nonrecurring cash assets irregularity discovered and recorded during the second quarter of 2006. Excluding the 2006 irregularity, non-interest expenses declined $95 thousand, or 1.2% in the first nine months of 2007 as compared to the same period of the prior year.

Federal income tax expense was $416 thousand for third quarter 2007, compared to $378 thousand for the same quarter in 2006. The effective tax rate for the quarter was 32.5% versus 31.7% in the prior year period. The increase in the effective tax rate was primarily the result of a reduction in the tax-exempt securities portion of the Company’s investment portfolio due to less attractive rates of return available on tax-exempt securities.

Total assets averaged $329 million during the quarter, an increase of $9.0 million, or 2.8% from the same quarter in the prior year. Average loan balances of $245 million reflect an increase of $15.6 million, or 6.8%, over the prior year third quarter, while average securities balances of $66 million declined $6.2 million, or 8.5% as compared to third quarter 2006. The Company has funded a portion of its 2007 loan growth with proceeds from maturities in the investment securities portfolio.

The majority of the Company’s investment portfolio is comprised of U.S. government obligations, corporate bonds and state and municipal securities. Approximately one third of the Company’s investment portfolio is comprised of mortgage-backed securities. The portfolio contains little, if any, embedded sub-prime security exposure and all securities are performing fully to terms.

Average commercial loan balances, including commercial real estate, increased $11.8 million, or 8.9% over the prior year third quarter. Average home mortgage and home equity balances grew $6.0 million, or 7.1% on a comparative quarter basis, while average consumer installment loan and credit card balances declined $2.2 million, or 19.6%.

As of September 30, 2007, nonperforming assets totaled $1.09 million, or .44% of period-end loans and other real estate, compared with $1.47 million, or .64%, at September 30, 2006. Net charge-offs for the quarter totaled $23 thousand, an annualized rate of .04% of average total loans. For the nine months ended September 30, 2007, net charge-offs total $406 thousand or .23% of average total loans as compared to net charge-offs of $130 thousand or .08% for the same period during 2006.

The allowance for loan losses at September 30, 2007 was 1.04% of period end loans and the Company funded $151 thousand in loan loss provision during the third quarter. The ratio of allowance for loan losses to nonperforming loans stood at 234% at September 30, 2007. Commenting on the Company’s credit quality, Mr. Steiner noted, “We experienced a very modest level of loan charge-offs in the third quarter and there has been no appreciable deterioration in the credit quality of our loan portfolio. Our lending practices remain unchanged. We continue to focus on high quality credit relationships and refrain from sub-prime mortgage lending.”

Total deposit balances averaged $253 million during third quarter 2007, an increase of 2.8% or $6.8 million over average deposit balances in third quarter 2006. Within the deposit category, average non interest-bearing account balances increased $4.8 million, or 12.4% as compared to the average in third quarter 2006, while interest-bearing checking, money market and savings average balances decreased $547 thousand, or 0.6% from third quarter year ago averages, and average time deposit balances grew $2.5 million or 2.1%.

Shareholders’ equity totaled $35.9 million on September 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 10.9% on September 30, 2007 as compared to 10.8% on September 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 $0.54 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 $330 million as of September 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. CSB can be found on the web at csb1.com.

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			2006			2006			2007			2006
EARNINGS	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			9 months			9 months
Net interest income FTE (a)	$	3,426		$	3,313		$	3,294		$	3,354		$	3,346		$	10,033		$	10,024
Provision for loan losses		151			124			78			80			75			353			222
Other income		762			902			646			614			676			2,310			1,979
Other expenses		2,722			2,647			2,619			2,596			2,704			7,988			8,320
FTE adjustment (a)		36			38			39			48			52			113			163
Net income		863			956			815			846			813			2,634			2,264
Diluted EPS		0.35			0.39			0.33			0.34			0.32			1.07			0.89
PERFORMANCE RATIOS
Return on average assets (ROA)		1.04	%		1.17	%		1.02	%		1.05	%		1.01	%		1.08	%		0.95	%
Return on average common equity (ROE)		9.55	%		10.85	%		9.37	%		9.65	%		9.42	%		9.92	%		8.69	%
Net interest margin FTE (a)		4.37	%		4.30	%		4.40	%		4.40	%		4.40	%		4.36	%		4.46	%
Efficiency ratio		65.00	%		62.80	%		66.47	%		65.42	%		67.23	%		64.72	%		69.32	%
Number of full-time equivalent employees		135			128			124			126			127
MARKET DATA
Book value/common share	$	14.60		$	14.26		$	14.18		$	14.03		$	13.82
Period-end common share mkt value		17.00			17.75			17.57			19.00			19.00
Market as a % of book		117.42	%		124.48	%		123.94	%		135.52	%		137.48	%
PE ratio		12.14			11.38			13.31			13.97			14.84
Cash dividends/common share	$	0.18		$	0.18		$	0.18		$	0.16		$	0.16		$	0.54		$	0.48
Common stock dividend payout ratio		51.43	%		46.15	%		54.55	%		47.06	%		50.00	%
Average basic common shares		2,462,885			2,461,918			2,487,087			2,499,356			2,505,785			2,470,875			2,536,201
Average diluted common shares		2,462,885			2,463,240			2,487,087			2,503,056			2,507,934			2,470,875			2,539,413
Period end common shares outstanding		2,462,880			2,462,888			2,462,931			2,499,181			2,499,476
Common shares repurchased		8			43			36,290			295			20,258			36,341			79,024
Common stock market capitalization	$	42,209		$	43,716		$	43,274		$	47,484		$	47,490
ASSET QUALITY
Gross charge-offs	$	33		$	379		$	47		$	107		$	23		$	459		$	203
Net charge-offs		23			353			30			10			5			406			130
Allowance for loan losses		2,554			2,426			2,655			2,607			2,537
Nonperforming assets (NPAs)		1,092			1,635			1,585			1,509			1,471
Net charge-off/average loans ratio		0.04	%		0.59	%		0.05	%		0.02	%		0.01	%		0.23	%		0.08	%
Allowance for loan losses/period-end loans		1.04			1.00			1.13			1.12			1.10
NPAs/loans and other real estate		0.44			0.67			0.67			0.65			0.64
Allowance for loan losses/nonperforming loans		233.80			152.99			172.89			172.81			177.26
CAPITAL & LIQUIDITY
Period-end tangible equity to assets		10.89	%		10.72	%		10.83	%		10.72	%		10.79	%
Average equity to assets		10.88			10.82			10.91			10.86			10.70
Average equity to loans		14.65			14.72			15.11			15.13			14.97
Average loans to deposits		96.68			95.45			92.12			91.32			93.01
AVERAGE BALANCES
Assets	$	329,448		$	326,665		$	323,327		$	320,407		$	320,477		$	326,236		$	319,526
Earning assets		310,884			308,703			303,899			302,226			301,395			307,856			300,193
Loans		244,675			240,208			233,434			230,004			229,042			239,480			223,909
Deposits		253,073			251,660			253,398			251,875			246,258			252,377			246,077
Shareholders’ equity		35,852			35,348			35,269			34,789			34,298			35,497			34,816
ENDING BALANCES
Assets	$	330,121		$	327,465		$	322,358		$	327,240		$	320,227
Earning assets		311,860			309,484			305,129			307,682			302,362
Loans		245,626			242,485			235,818			232,432			229,832
Deposits		253,594			250,365			253,531			260,178			249,605
Shareholders’ equity		35,948			35,119			34,915			35,070			34,553

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,
	2007			2006
ASSETS
Cash and cash equivalents
Cash and due from banks	$	11,197,845		$	10,493,565
Interest-earning deposits in other banks		75,179			53,570
Federal funds sold		0			0
Total cash and cash equivalents		11,273,024			10,547,135
Securities
Available-for-sale, at fair-value		63,052,850			69,412,444
Restricted stock, at cost		3,105,900			3,063,700
Total securities		66,158,750			72,476,144
Loans		245,626,368			229,832,402
Less allowance for loan losses		2,554,489			2,536,827
Net loans		243,071,879			227,295,575
Loans held for sale		0			0
Premises and equipment, net		7,397,612			7,432,171
Accrued interest receivable and other assets		2,219,472			2,476,297
TOTAL ASSETS	$	330,120,737		$	320,227,322
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Nontinterest-bearing	$	42,329,684		$	37,502,503
Interest-bearing		211,264,649			212,102,561
Total deposits		253,594,333			249,605,064
Short-term borrowings		31,783,926			31,421,981
Other borrowings		7,107,511			2,594,067
Accrued interest payable and other liabilities		1,686,784			2,052,890
Total liabilities		294,172,554			285,674,002
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		6,446,180			6,421,490
Retained earnings		17,552,129			15,802,515
Treasury stock at cost - 204,906 shares in 2007 and 168,311 shares in 2006		(4,348,987	)		( 3,690,576	)
Accumulated other comprehensive loss		(374,806	)		( 653,776	)
Total shareholders’ equity		35,948,183			34,553,320
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	330,120,737		$	320,227,322

CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Quarter ended				Nine months
	September 30,				September 30,
	2007		2006		2007		2006
Interest and dividend income:
Loans, including fees	$	4,633,268	$	4,325,203	$	13,433,102	$	12,294,678
Taxable securities		720,952		735,071		2,205,401		2,272,037
Nontaxable securities		62,931		95,495		198,060		297,011
Other		944		297		16,324		7,136
Total interest and dividend income		5,418,095		5,156,066		15,852,887		14,870,862
Interest expense:
Deposits		1,608,916		1,440,410		4,763,015		3,880,245
Other		419,497		421,566		1,169,545		1,129,321
Total interest expense		2,028,413		1,861,976		5,932,560		5,009,566
Net interest income		3,389,682		3,294,090		9,920,327		9,861,296
Provision for loan losses		151,264		75,000		353,540		221,667
Net interest income after provision for loan losses		3,238,418		3,219,090		9,566,787		9,639,629
Non-interest income
Service charges on deposits accounts		335,536		325,029		927,894		977,755
Trust services		188,598		135,904		544,873		392,495
Securities gains		0				5,430
Other		238,147		215,409		832,076		608,742
Total non-interest income		762,281		676,342		2,310,273		1,978,992
Non-interest expenses
Salaries and employee benefits		1,485,842		1,538,491		4,327,845		4,459,994
Occupancy expense		188,166		176,360		554,439		515,104
Equipment expense		131,192		118,813		372,324		376,326
Franchise tax expense		105,892		113,425		311,971		334,817
Professional and director fees		147,009		171,042		453,151		519,494
Other expenses		664,008		585,737		1,968,762		2,114,063
Total non-interest expenses		2,722,109		2,703,868		7,988,492		8,319,798
Income before income tax		1,278,590		1,191,564		3,888,568		3,298,823
Federal income tax provision		415,500		378,000		1,254,500		1,034,700
Net income	$	863,090	$	813,564	$	2,634,068	$	2,264,123
Net income per share
Basic	$	0.35	$	0.32	$	1.07	$	0.89
Diluted	$	0.35	$	0.32	$	1.07	$	0.89

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

EX-99.2

Exhibit 99.2

FINANCIAL HIGHLIGHTS            STOCK PERFORMANCE & DIVIDENDS SEPTEMBER 30, 2007 (DOLLARS IN THOUSANDS, EXCEPT PER            CASH SHARE DATA) TRADE PRICE AT OR FOR THE NINE MONTHS            QUARTER            CLOSING DIVIDEND ENDED SEPTEMBER 30 ENDING            HIGH LOW            PRICE            DECLARED 2007 2006 Q U A R T E R LY            R E P O R T 12/31/0525.00 21.00 21.00 0.14 Assets $ 330,121$ 320,227 3/31/0621.25 20.50 20.90 0.16 Net loans $ 243,072$ 227,296 6/30/0620.87 20.00 20.40 0.16 Securities $ 66,159 $ 72,476 9/30/0620.75 18.70 19.00 0.16 Deposits $ 253,594$ 249,605 12/31/0620.25 18.00 19.00 0.16 Shareholders’ equity $ 35,948 $ 34,553 3/31/0719.05 17.50 17.57 0.18 Net income $ 2,634 $2,264 6/30/0718.25 17.42 17.75 0.18 Earnings per share $ 1.07 $0.89 9/30/0719.00 15.95 17.00 0.18 Book value per outstanding $ 14.60 $13.82 share HIGH LOW COMMON STOCK PERFORMANCE CLOSE KEY RATIOS 26 25 AT OR FOR THE NINE MONTHS ENDED SEPTEMBER 30 24 2007 2006 23 Return on average assets 1.08% 0.95% PER 22 SHARE Return on average equity 9.92% 8.69% 21 DOLLARS Net interest margin (tax 4.36% 4.46% equivalent) 20 Loans to deposits 96.86% 92.07% 19 Allowance for loan loss to 1.04% 1.10% total loans Shareholders’ equity to total 10.89% 10.79% 18 assets Efficiency ratio 64.72% 69.32% 17 16

15

DIRECTORS — 05 — 06- 06 — 06 — 06 — 07- 07 — 07 DEC MAR            JUN            SEP DEC            MAR JUN            SEP QUARTER ENDING Robert K. Baker            Jeffery A. Robb, Sr. Ronald E. Holtman            Samuel M. ADDITIONAL STOCK INFORMATION Steimel J. Thomas Lang            Eddie L. Steiner STOCK LISTING Daniel J. Miller            John R. Waltman Common: Chairman Symbol — CSBB.OB STOCK TRANSFER Registrar & Transfer Company EXECUTIVE OFFICERS            Attn: Investor Relations 10 Commerce Drive Cranford, NJ 07016 Eddie L. Steiner (800) 368-5948 President and Chief Executive Officer Copies of CSB Bancorp, Inc. Rick L. Ginther S.E.C. Filings may be obtained by writing: President, The Commercial & Savings Bank            Paula J. Meiler, CFO CSB Bancorp, Inc. Paul D. Greig 91 North Clay Street Chief Operations/Information Officer Millersburg, OH 44654 Paula J. Meiler (330) 674-9015 or Chief Financial Officer (800) 654-9015

TO OUR SHAREHOLDERS We are pleased to report unaudited net income of $863 thousand for the third quarter of 2007, a 6% increase over third quarter 2006 results. Earnings per share for third quarter 2007 totaled $.35 versus $.32 in the same quarter of the prior year. During the past three months, your company continued to grow the balance sheet and increase revenues while controlling costs and maintaining high asset quality in our loan and investment portfolios. For the first nine months of 2007, average loan balances are up 7% and average deposits are up 3% versus the same period of the prior year. Net interest income increased by 3% compared to the same quarter of the prior year on the strength of higher average loan balances. The net interest margin of 4.37% for the quarter continues to compare favorably to the industry. Noninterest income increased 13% compared to third quarter 2006, led by increased revenue from trust operations and debit card interchange income. Noninterest expenses increased 1% versus the same period in the prior year. The Company’s third quarter efficiency ratio of 65.0% improved from 67.2% in the third quarter of 2006 primarily as a result of ongoing efforts to control operating costs. As of September 30, unaudited year-to-date net income of $2.6 million is $370 thousand or 16% ahead of last year. Earnings per share of $1.07 for the first nine months of 2007 reflect a 20% increase over the prior year’s nine-month total of $.89 per share. While there has been considerable recent media coverage about rising loan defaults and lender liquidity issues, we continue to provide safe and reliable community bank services. We believe the quality of our loan and investment portfolios remains sound, and that we are appropriately reserved for loan losses. We have not been a lender in sub prime mortgages and have not purchased sub prime investment securities. Our nonperforming assets and loan charge-offs both declined during the third quarter and remain at modest levels. On September 30, nonperforming assets amounted to just .44% of total loans and other real estate owned, while the reserve for loan losses stood at 1.04% of total loans. The enclosed $.18 per share dividend for the third quarter represents an increase of 12.5% or $.02 per share over last year’s third quarter dividend. We thank you for your continued support as a shareholder of CSB.

Sincerely,

JOHN R. WALTMAN            EDDIE L. STEINER Chairman            President and CEO CSB Bancorp, Inc. CSB Bancorp, Inc.

CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)

(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) SEPTEMBER 30 2007 2006 ASSETS: Cash and due from banks $ 11,273 $ 10,547 Federal funds sold — - Securities 66,159 72,476 Net loans 243,072 227,296 Premises & equipment, net 7,398 7,432 Other assets 2,219 2,476 TOTAL ASSETS $ 330,121 $ 320,227

LIABILITIES: Deposits $ 253,594 $ 249,605 Securities sold under agreements to repurchase 21,384 22,122 Federal funds purchased 10,400 9,300 Other borrowings 7,108 2,594 Other liabilities 1,687 2,053 TOTAL LIABILITIES $ 294,173 $ 285,674

SHAREHOLDERS’ EQUITY: Common stock $ 16,674 $ 16,674 Additional paid-in capital 6,446 6,421 Retained earnings 17,552 15,803 Treasury stock (4,349) (3,691) Accumulated other comprehensive loss (375) (654) TOTAL SHAREHOLDERS’ EQUITY $ 35,948 $ 34,553

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 330,121 $ 320,227

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED SEPTEMBER 30 NINE MONTHS ENDED SEPTEMBER 30 2007 2006 2007 2006 INTEREST INCOME: Interest and fees on loans $ 4,633$ 4,326$ 13,433$ 12,295 Interest on securities 784 830 2,404 2,569 Other interest income 1 — 16 7 TOTAL INTEREST INCOME 5,418 5,156 15,853 14,871

INTEREST EXPENSE: Interest on deposits 1,609 1,440 4,763 3,880 Other interest expense 419 421 1,170 1,129 TOTAL INTEREST EXPENSE 2,028 1,861 5,933 5,009 Net interest income 3,390 3,295 9,920 9,862 Provision for loan losses 151 75 353 222 Net interest income after provision for loan losses 3,239 3,220 9,567 9,640 Noninterest income 762 676 2,305 1,979 Gain on sale of securities — — 5 - Noninterest expense 2,722 2,704 7,988 8,320 Net income before federal income taxes 1,279 1,192 3,889 3,299 Federal income tax provision 416 379 1,255 1,035 NET INCOME $ 863 $ 813 $ 2,634 $ 2,264

EARNINGS PER SHARE $ 0.35 $ 0.32 $1.07 $0.89