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) July 22, 2008

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))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 22, 2008 CSB Bancorp, Inc. issued a press release announcing its earnings for the three month period ended June 30, 2008. 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 June 30, 2008.

99.2 Shareholder brochure for CSB Bancorp, Inc. Quarterly Report for the quarter ended June 30, 2008.

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: July 22, 2008		Senior Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

CSB BANCORP, INC. REPORTS SECOND QUARTER EARNINGS

Second Quarter and Year to Date Highlights

	Quarter Ended			Six Months Ended
	June 30, 2008			June 30, 2008
Diluted earnings per share	$	0.36		$	0.77
Net Income	$	878,000		$	1,880,000
Return on average common equity		9.46	%		10.14	%
Return on average assets		1.03	%		1.11	%

Millersburg, Ohio — July 22, 2008 — CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced second quarter 2008 net income of $878 thousand, or $.36 per basic and diluted share, as compared to $956 thousand, or $.39 per basic and diluted share for the same period in 2007.

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 9.46% and 1.03%, respectively, compared with 10.85% and 1.17% for the second quarter of 2007.

For the six months ended June 30, 2008, the Company reported net income of $1.88 million, or $0.77 per diluted share, up from $1.77 million, or $0.72 per diluted share for the same period of the prior year. ROE and ROA were 10.14% and 1.11% respectively for the six-month period, compared to 10.11% and 1.10% for the comparable period in 2007.

Eddie Steiner, President and CEO stated, “We are pleased to report that core earnings for the quarter were 5.8% above second quarter of the prior year. Difficult economic conditions continue to be dampen some local business activity, but our year-to-date performance is about 6% ahead of last year on an income and earnings per share basis, and we’ve been able to continue modest growth of our balance sheet.”

Net interest income on a fully taxable equivalent basis totaled $3.3 million, an increase of $5 thousand or 0.2% over the same quarter in the prior year, while declining by $88 thousand or 2.6% from the immediate prior quarter. The Company’s net interest margin was 4.09% for the quarter.

Revenue (defined as net interest income on a fully tax-equivalent basis plus non-interest income net of securities transactions) totaled $4.0 million for second quarter 2008, compared with $4.2 million in the prior-year second quarter, a decrease of 5.0%. Core revenue declined $30 thousand, or 0.8%, after accounting for a one-time insurance recovery received in the prior year’s second quarter. On a year-to-date basis, core revenue is $121 thousand, or 1.5% ahead of the prior year.

Non-interest expense totaled $2.6 million during the quarter, a decrease of $30 thousand, or 1.1%, from second quarter 2007. The Company’s year-to-date efficiency ratio (defined as operating expenses divided by revenue) improved to 63.95% as compared to 64.57% for the first six months of the prior year.

Federal income tax expense was $423 thousand for the quarter, reflecting an effective tax rate of 32.5%, compared to $450 thousand for the same quarter in 2007, or 32.0%. The increase in the effective tax rate 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 2007 and 2008.

Total assets averaged $341 million during the quarter, an increase of $15 million, or 4.5% above the same quarter in the prior year. Average loan balances of $249 million reflect an increase of $9 million, or 3.8%, over second quarter of the prior year, while average securities balances of $69 million declined $908 thousand, or 1.3% as compared to second quarter 2007.

At June 30, 2008, assets totaled $347 million, up $20 million, or 6.0% from June 30, 2007. Quarter-end loans of $250 million were $7 million, or 2.9%, above total loans at the end of the same quarter in 2007. Quarter-end securities balances of $69 million reflect an increase of $2 million, or 2.8% from the same quarter of the prior year.

Average balances for commercial loans, including commercial real estate, decreased $2.8 million or 1.8% during the quarter, average residential mortgage and home equity balances declined $4 thousand, while consumer installment, credit card and other average loan balances declined by $2.1 million, or 24.4% primarily due to the sale of the Company’s $2.0 million credit card portfolio at the end of the prior quarter.

As of June 30, 2008, nonperforming assets totaled $615 thousand, or 0.25% of period-end loans plus other real estate, compared with $431 thousand, or 0.17%, at March 31, 2008. Net charge-offs for the quarter totaled $21 thousand, or an annualized rate of 0.03% of average total loans. Steiner continued, “Nonperforming assets have remained below one half of one percent for each of the past four quarters. We remain watchful for any signs of deterioration in the quality or performance of our loan and securities portfolios. We believe we are appropriately reserved for any embedded risk in our loan portfolio and continue to avoid lending or investment in the sub-prime credit arena.”

The Company’s allowance for loan losses at June 30, 2008 was 1.09% of period end loans and the Company funded $48 thousand in loan loss provision during the second quarter. The ratio of allowance for loan losses to nonperforming loans stood at 442% at June 30, 2008.

Deposit balances totaled $248 million at June 30, 2008, an increase of $1.1 million, or 0.5% from the prior quarter-end. Short-term and other borrowings amounted to $61 million at June 30, 2008, an increase of $2.4 million or 4.1% for the quarter as the company took advantage of favorable borrowing rates to lower its total cost of funds.

Average deposit balances of $246 million declined $5.3 million during the quarter, or 2.1%. Within the deposit category, average non interest-bearing account balances decreased $1.6 million, or 3.9%. Average balances for interest bearing checking, money market and savings accounts declined a total of $1.5 million, or 1.7%, while average time deposit balances declined $2.2 million, or 1.8% during the quarter.

Shareholders’ equity totaled $37 million on June 30, 2008 with 2.4 million common shares outstanding at quarter-end. CSB’s capital position remains strong, with tangible equity to assets at 10.5% on June 30, 2008, compared to 10.4% on December 31, 2007. Commenting on the company’s growth plans, Steiner noted, “On May 14, 2008, we announced the pending acquisition of Indian Village Bancorp, Inc. and its wholly owned subsidiary Indian Village Community Bank. Subject to regulatory and Indian Village shareholder approvals and customary closing conditions, we anticipate merging Indian Village into CSB during October, with integration of systems and banking operations completed in the fourth quarter.”

The Company declared a common dividend of $.18 per share during the quarter.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $340 million as of June 30, 2008. 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
	2008			2008			2007			2007			2007			2008			2007
EARNINGS	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			6 months			6 months
Net interest income FTE (a)	$	3,318		$	3,406		$	3,437		$	3,426		$	3,313		$	6,724		$	6,608
Provision for loan losses		48			107			119			151			124			155			202
Other income		680			955			725			762			902			1,635			1,548
Other expenses		2,617			2,728			2,713			2,722			2,647			5,345			5,266
FTE adjustment (a)		32			26			31			36			38			58			77
Net income		878			1,002			880			863			956			1,880			1,771
Diluted EPS		0.36			0.41			0.35			0.35			0.39			0.77			0.72
PERFORMANCE RATIOS
Return on average assets (ROA)		1.03	%		1.17	%		1.05	%		1.04	%		1.17	%		1.11	%		1.10	%
Return on average common equity (ROE)		9.46	%		10.89	%		9.54	%		9.55	%		10.85	%		10.14	%		10.11	%
Net interest margin FTE (a)		4.09	%		4.19	%		4.34	%		4.37	%		4.30	%		4.14	%		4.35	%
Efficiency ratio		65.46	%		62.55	%		65.36	%		65.00	%		62.88	%		63.95	%		64.57	%
Number of full-time equivalent employees		128			126			127			135			128
MARKET DATA
Book value/common share	$	15.10		$	15.22		$	14.82		$	14.60		$	14.26
Period-end common share mkt value		15.75			16.14			17.75			17.00			17.75
Market as a % of book		104.29	%		106.05	%		119.76	%		117.42	%		124.48	%
PE ratio		10.94			9.84			12.68			12.14			11.38
Cash dividends/common share	$	0.18		$	0.18		$	0.18		$	0.18		$	0.18		$	0.36		$	0.36
Common stock dividend payout ratio		50.00	%		43.90	%		51.43	%		51.43	%		46.15	%
Average basic common shares		2,432,793			2,444,597			2,455,938			2,462,885			2,461,918			2,438,695			2,474,936
Average diluted common shares		2,432,793			2,444,642			2,456,250			2,462,885			2,463,240			2,438,695			2,475,000
Period end common shares outstanding		2,422,050			2,440,850			2,447,624			2,462,880			2,462,888
Common shares repurchased		18,800			6,774			15,216			8			43			25,574			36,333
Common stock market capitalization	$	38,147		$	39,395		$	43,445		$	42,209		$	43,716
ASSET QUALITY
Gross charge-offs	$	33		$	22		$	153		$	33		$	379		$	55		$	426
Net charge-offs		21			2			87			23			353			23			383
Allowance for loan losses		2,718			2,691			2,586			2,554			2,426
Nonperforming assets (NPAs)		615			431			673			1,092			1,635
Net charge-off/average loans ratio		0.03	%		0.00	%		0.14	%		0.04	%		0.59	%		0.02	%		0.33	%
Allowance for loan losses/period-end loans		1.09			1.09			1.01			1.04			1.00
NPAs/loans and other real estate		0.25			0.17			0.26			0.44			0.67
Allowance for loan losses/nonperforming loans		441.75			623.64			452.77			233.80			152.99
CAPITAL & LIQUIDITY
Period-end tangible equity to assets		10.54	%		10.77	%		10.36	%		10.89	%		10.72	%
Average equity to assets		10.94			10.79			11.01			10.88			10.82
Average equity to loans		14.97			14.56			14.67			14.65			14.72
Average loans to deposits		101.48			101.28			97.52			96.68			95.45
AVERAGE BALANCES
Assets	$	341,297		$	343,023		$	332,243		$	329,448		$	326,665		$	342,144		$	324,556
Earning assets		326,435			326,966			314,236			310,884			308,703			326,730			306,313
Loans		249,395			254,277			249,394			244,675			240,208			251,827			236,839
Deposits		245,767			251,060			255,729			253,073			251,660			248,371			252,025
Shareholders’ equity		37,334			37,021			36,582			35,852			35,348			37,261			35,310
ENDING BALANCES
Assets	$	347,104		$	344,808		$	350,270		$	330,121		$	327,465
Earning assets		329,468			327,711			331,267			311,860			309,484
Loans		249,543			246,984			256,659			245,626			242,485
Deposits		248,176			247,029			259,386			253,594			250,365
Shareholders’ equity		36,577			37,148			36,278			35,948			35,119

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,
	2008			2007
ASSETS
Cash and cash equivalents
Cash and due from banks	$	11,350,478		$	10,253,372
Interest-earning deposits in other banks		181,101			136,457
Federal funds sold		11,000,000			0
Total cash and cash equivalents		22,531,579			10,389,829
Securities
Available-for-sale, at fair-value		65,562,619			63,757,288
Restricted stock, at cost		3,181,600			3,105,900
Total securities		68,744,219			66,863,188
Loans		249,542,605			242,484,648
Less allowance for loan losses		2,717,912			2,426,110
Net loans		246,824,693			240,058,538
Premises and equipment, net		7,076,699			7,527,394
Accrued interest receivable and other assets		1,926,733			2,626,158
TOTAL ASSETS	$	347,103,923		$	327,465,107
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	40,794,649		$	40,648,183
Interest-bearing		207,381,737			209,716,320
Total deposits		248,176,386			250,364,503
Short-term borrowings		27,111,134			33,257,047
Other borrowings		33,767,797			7,202,919
Accrued interest payable and other liabilities		1,471,300			1,521,503
Total liabilities		310,526,617			292,345,972
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		6,459,819			6,439,015
Retained earnings		18,994,645			17,132,359
Treasury stock at cost - 245,736 shares in 2008 and 204,898 shares in 2007		(5,013,535	)		(4,348,856	)
Accumulated other comprehensive loss		(537,290	)		(777,050	)
Total shareholders’ equity		36,577,306			35,119,135
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	347,103,923		$	327,465,107

CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Quarter ended				Six months ended
	June 30,				June 30,
	2008		2007		2008		2007
Interest and dividend income:
Loans, including fees	$	4,017,256	$	4,485,314	$	8,429,960	$	8,799,834
Taxable securities		772,867		734,392		1,577,489		1,484,449
Nontaxable securities		55,544		66,617		99,422		135,129
Other		47,664		2,186		69,871		15,380
Total interest and dividend income		4,893,331		5,288,509		10,176,742		10,434,792
Interest expense:
Deposits		1,166,153		1,600,736		2,593,911		3,154,099
Other		441,414		412,420		917,302		750,048
Total interest expense		1,607,567		2,013,156		3,511,213		3,904,147
Net interest income		3,285,764		3,275,353		6,665,529		6,530,645
Provision for loan losses		47,677		124,271		154,709		202,276
Net interest income after provision for loan losses		3,238,087		3,151,082		6,510,820		6,328,369
Non-interest income
Service charges on deposits accounts		339,256		316,887		626,408		592,359
Trust services		162,568		186,638		351,232		356,275
Securities gains		0		5,430		0		5,430
Gain on sale of loans		7,176		1,946		271,835		4,690
Other		170,946		390,991		385,957		589,239
Total non-interest income		679,946		901,892		1,635,432		1,547,993
Non-interest expenses
Salaries and employee benefits		1,527,162		1,434,823		3,064,065		2,842,003
Occupancy expense		184,915		181,720		382,796		366,273
Equipment expense		119,320		125,214		244,770		241,132
Franchise tax expense		107,380		104,741		214,810		206,079
Professional and director fees		140,343		164,760		279,899		306,142
Other expenses		538,151		635,249		1,159,390		1,304,754
Total non-interest expenses		2,617,271		2,646,507		5,345,730		5,266,383
Income before income tax		1,300,762		1,406,467		2,800,522		2,609,979
Federal income tax provision		423,000		450,000		921,000		839,000
Net income	$	877,762	$	956,467	$	1,879,522	$	1,770,979
Net income per share
Basic	$	0.36	$	0.39	$	0.77	$	0.72
Diluted	$	0.36	$	0.39	$	0.77	$	0.72

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 SIX MONTHS ENDED JUNE 30 2008 2007

Assets $347,104 $327,465

Net loans $246,825 $240,059

Securities $ 68,744 $66,863

Deposits $248,177 $250,365

Shareholders’ equity $ 36,577 $35,119

Net income $ 1,880 $1,771

Earnings per share $ 0.77 $ 0.72

Book value per outstanding share $ 15.10 $14.26

KEY RATIOS

AT OR FOR THE SIX MONTHS ENDED JUNE 30 2008 2007

Return on average assets 1.11% 1.10% Return on average equity 10.14% 10.11% Net interest margin (tax equivalent) 4.14% 4.35% Loans to deposits 100.55% 96.85% Allowance for loan loss to total loans 1.09% 1.00% Shareholders’ equity to total assets 10.54% 10.72% Efficiency ratio 63.95% 64.57%

DIRECTORS

Robert K. Baker            Jeffery A. Robb, Sr. Ronald E. Holtman            Eddie L. Steiner J. Thomas Lang            John R. Waltman

Chairman

Daniel J. Miller

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

STOCK PERFORMANCE & DIVIDENDS

CASH TRADE PRICE QUARTER            CLOSING            DIVIDEND ENDING            HIGH            LOW            PRICE            DECLARED

9/30/06 20.75 18.70 19.00 0.16

12/31/06 20.25 18.00 19.00 0.16

3/31/07 19.05 17.50 17.57 0.18

6/30/07 18.25 17.42 17.75 0.18

9/30/07 19.00 15.95 17.00 0.18

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

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

We are pleased to report that mid-year results for CSB Bancorp, Inc. reflect stability and continued solid perform- ance despite the struggling economy and turbulence in much of the banking and financial services sector.

CSB’s net earnings totaled $878 thousand in the second quarter, or $0.36 per share. For the six months ended June 30, net income of $1.88 million is ahead of the prior year by $109 thousand, or $0.05 per share.

Just as important, the Company has maintained high asset quality within its loan and securities portfolios. Net loan charge-offs were very low during the first half of 2008 (an annual rate of 0.02%), and nonperforming asset levels remain well below historical norms. While we are pleased with these results, we remain vigilant for any signs of deterioration in asset quality or performance.

CSB’s strong capital position provides a solid foundation to weather the difficult economic environment and to consider further opportunities for creating shareholder value.

We continue working toward the acquisition of Indian Village Bancorp and its wholly owned subsidiary Indian Village Community Bank, which we announced on May 14, 2008. Subject to regulatory and Indian Village shareholder approvals and absent unforeseen material adversity, we anticipate an October closing date for merging Indian Village into CSB, with integration of systems and banking operations completed during the fourth quarter.

On a broader scale, we expect the overall economy to be hobbled for some time by sluggish housing and employment activity, high foreclosure rates, deteriorated credit conditions, tightened lending standards, lack of liquidity in financial markets and skittish investor sentiment. While we do not profess to know when the “bottom” will occur, it appears this economic down cycle may not be short-lived and the eventual recovery may be rather slow and difficult.

In the meantime, we are fortunate that CSB’s existing and target markets have not been as severely impacted by the downturn as many areas and our focus remains on providing high quality financial services while generating profit and increasing value for our fellow shareholders.

On behalf of the board of directors, we enclose the second quarter 2008 dividend of $0.18 per share and thank you for being a shareholder of CSB Bancorp, Inc.

Sincerely,

EDDIE L. STEINER            JOHN R. WALTMAN

President and CEO            Chairman

CSB Bancorp, Inc. CSB Bancorp, Inc.

CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)

(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) JUNE 30 2008 2007

ASSETS:

Cash and due from banks $ 11,531 $ 10,390

Federal funds sold 11,000 0

Securities 68,744 66,863

Net loans 246,825 240,059

Premises & equipment, net 7,077 7,527

Other assets 1,927 2,626

TOTAL ASSETS $347,104 $327,465 LIABILITIES:

Deposits $248,177 $250,365

Securities sold under agreements to repurchase 25,111 22,057

Short-term borrowings 2,000 11,200

Other borrowings 33,768 7,203

Other liabilities 1,471 1,521

TOTAL LIABILITIES $310,527 $292,346 SHAREHOLDERS’ EQUITY:

Common stock $ 16,674 $ 16,674

Additional paid-in capital 6,460 6,439

Retained earnings 18,994 17,132

Treasury stock (5,014) (4,349)

Accumulated other comprehensive loss (537) (777)

TOTAL SHAREHOLDERS’ EQUITY $ 36,577 $ 35,119 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $347,104 $327,465

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED JUNE 30 SIX MONTHS ENDED JUNE 30 2008 2007 2008 2007

INTEREST INCOME:

Interest and fees on loans $4,017 $4,485 $ 8,430 $ 8,800

Interest on securities 828 801 1,677 1,619

Other interest income 48 2 70 15

TOTAL INTEREST INCOME 4,893 5,288 10,177 10,434

INTEREST EXPENSE:

Interest on deposits 1,166 1,601 2,594 3,154

Other interest expense 441 412 917 750

TOTAL INTEREST EXPENSE 1,607 2,013 3,511 3,904

Net interest income 3,286 3,275 6,666 6,530

Provision for loan losses 48 124 155 202

Net interest income after provision for loan losses 3,238 3,151 6,511 6,328

Noninterest income 680 902 1,636 1,548

Noninterest expense 2,617 2,647 5,346 5,266

Net income before federal income taxes 1,301 1,406 2,801 2,610

Federal income tax provision 423 450 921 839

NET INCOME $ 878 $ 956 $ 1,880 $ 1,771 EARNINGS PER SHARE $ 0.36 $ 0.39 $ 0.77 $ 0.72