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 15, 2008

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 15, 2008 CSB Bancorp, Inc. issued a press release announcing its earnings for the three month period ended September 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 September 30, 2008.

99.2 Shareholder brochure for CSB Bancorp, Inc. Quarterly Report for the quarter ended September 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: October 15, 2008		Senior Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

CSB BANCORP, INC. REPORTS THIRD QUARTER EARNINGS
Third Quarter and Year to Date Highlights

	Quarter Ended			Nine Months Ended
	September 30, 2008			September 30, 2008
Diluted earnings per share	$	0.37		$	1.14
Net Income	$	890,000		$	2,770,000
Return on average common equity		9.46	%		9.91	%
Return on average assets		1.02	%		1.08	%

Millersburg, Ohio – October 15, 2008 – CSB Bancorp, Inc. (OTCBB: CSBB.ob) today announced third quarter 2008 net income of $890 thousand, or $.37 per basic and diluted share, as compared to $863 thousand, or $.35 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 1.02%, respectively, compared with 9.55% and 1.04% for the third quarter of 2007.

For the nine months ended September 30, 2008, the Company reported net income of $2.77 million, or $1.14 per diluted share, up from $2.63 million, or $1.07 per diluted share for the same period of the prior year. ROE and ROA were 9.91% and 1.08% respectively for the nine-month period, virtually unchanged from 9.92% and 1.08% for the comparable period in 2007.

Eddie Steiner, President and CEO stated, “We are pleased to report continued solid financial performance despite the turmoil in global credit and financial markets. Net income, and average total balances of deposits and loans all increased this quarter. Earnings and average total assets are about 5% ahead of last year at this time.”

Third quarter net interest income on a fully tax-equivalent basis totaled $3.5 million, an increase of $47 thousand or 1.4% over the same quarter in the prior year, while rising $155 thousand or 4.7% from the immediate prior quarter. The Company’s net interest margin was 4.19% for the quarter.

Revenue (defined as net interest income on a fully tax-equivalent basis plus non-interest income net of securities transactions) totaled $4.1 million for third quarter 2008, a decrease of $41 thousand, or 1.0%, versus the prior year quarter. The revenue reduction is primarily attributable to a $50 thousand decline in asset-based fee income from the Company’s trust operations and $35 thousand in realized securities losses, partially offset by the increase in net interest income. On a year-to-date basis, core revenue is $350 thousand, or 2.9% above the prior year after excluding a $187 pretax insurance recovery in 2007.

Non-interest expense totaled $2.7 million during the quarter, a decrease of $60 thousand, or 2.2%, from third quarter 2007. The Company’s year-to-date efficiency ratio (defined as operating expenses divided by revenue) of 64.0% compares favorably to the 64.7% of the first nine months of the prior year.

Federal income tax expense was $454 thousand for the quarter, reflecting an effective tax rate of 33.8%, compared to $416 thousand for the same quarter in 2007, or 32.5%. The increase in the effective tax rate was primarily the result of comparatively lower tax-free interest income due to maturities of bonds within the Company’s tax-free investment portfolio during 2007 and 2008.

Total assets averaged $345 million during the quarter, an increase of $16 million, or 4.9% above the same quarter in the prior year. Average loan balances of $254 million reflect an increase of $9 million, or 3.9%, over third quarter of the prior year, while average securities balances of $70 million increased $3 million, or 5.2% as compared to third quarter 2007.

At September 30, 2008, assets totaled $344 million, up $14 million, or 4.1% from September 30, 2007. Quarter-end loans of $256 million were $11 million, or 4.4%, above total loans at the end of the same quarter in 2007. Quarter-end securities balances of $71 million reflect an increase of $4 million, or 6.8% from the same quarter of the prior year.

The Company’s investment portfolio has contained no Fannie Mae or Freddie Mac equities, and no sub prime credits, credit default swaps, or other “toxic” assets during any portion of 2007 or 2008.

Average balances for commercial loans, including commercial real estate, increased $3.7 million or 2.5% during the quarter, average residential mortgage and home equity balances increased $1.1 million or 1.1%, while consumer installment, credit card and other average loan balances declined by $22 thousand, or 0.3%.

As of September 30, 2008, nonperforming assets totaled $577 thousand, or 0.23% of period-end loans plus other real estate, compared with $615 thousand, or 0.25%, at June 30, 2008. Net charge-offs for the quarter totaled $44 thousand, or an annualized rate of 0.07% of average total loans.

The Company’s allowance for loan losses at September 30, 2008 was 1.08% of period end loans and the Company funded $107 thousand in loan loss provision during the third quarter. The ratio of allowance for loan losses to nonperforming loans stood at 482% at September 30, 2008.

Deposit balances totaled $246 million at September 30, 2008, a decrease of $2.2 million, or 0.9% from the prior quarter-end. Short-term and other borrowings amounted to $58 million at September 30, 2008, a decrease of $2.4 million or 4.0% for the quarter.

Average deposit balances of $247 million increased $1.3 million during the quarter, or 0.5%. Within the deposit category, average non interest-bearing account balances increased $3.2 million, or 8.4%. Average balances for interest bearing checking, money market and savings accounts increased a total of $3.4 million, or 3.9%, while average time deposit balances declined $5.4 million, or 4.5% during the quarter. Steiner noted the Company continues to focus on expanding core deposits as part of its customer relationship building strategy.

Shareholders’ equity totaled $37 million on September 30, 2008 with 2.4 million common shares outstanding at quarter-end. CSB’s capital position remains strong, with tangible equity to assets at 10.9% on September 30, 2008, compared to 10.4% on December 31, 2007.

The Company expects to close its pending acquisition of Indian Village Bancorp, Inc. and its wholly owned subsidiary Indian Village Community Bank on October 31, 2008, with banking centers in New Philadelphia, North Canton and Gnadenhutten opening as Commercial & Savings Bank locations on November 1.

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 assets of $344 million as of September 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			2008			2007			2007			2008			2007
EARNINGS	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			9 months			9 months
Net interest income FTE (a)	$	3,473		$	3,318		$	3,406		$	3,437		$	3,426		$	10,197		$	10,033
Provision for loan losses		107			48			107			119			151			262			353
Other income		674			680			955			725			762			2,309			2,310
Other expenses		2,663			2,617			2,728			2,713			2,722			8,008			7,988
FTE adjustment (a)		34			32			26			31			36			92			113
Net income		890			878			1,002			880			863			2,770			2,634
Diluted EPS		0.37			0.36			0.41			0.35			0.35			1.14			1.07
PERFORMANCE RATIOS
Return on average assets (ROA)		1.02	%		1.03	%		1.17	%		1.05	%		1.04	%		1.08	%		1.08	%
Return on average common equity (ROE)		9.46	%		9.46	%		10.89	%		9.54	%		9.55	%		9.91	%		9.92	%
Net interest margin FTE (a)		4.19	%		4.09	%		4.19	%		4.34	%		4.37	%		4.15	%		4.36	%
Efficiency ratio		64.19	%		65.46	%		62.55	%		65.36	%		65.00	%		64.03	%		64.72	%
Number of full-time equivalent employees		124			128			126			127			135
MARKET DATA
Book value/common share	$	15.49		$	15.10		$	15.22		$	14.82		$	14.60
Period-end common share mkt value		15.25			15.75			16.14			17.75			17.00
Market as a % of book		101.57	%		104.29	%		106.05	%		119.76	%		117.42	%
PE ratio		10.36			10.94			9.84			12.68			12.14
Cash dividends/common share	$	0.18		$	0.18		$	0.18		$	0.18		$	0.18		$	0.54		$	0.54
Common stock dividend payout ratio		48.65	%		50.00	%		43.90	%		51.43	%		51.43	%
Average basic common shares		2,422,014			2,432,793			2,444,597			2,455,938			2,462,885			2,433,094			2,470,875
Average diluted common shares		2,422,014			2,432,793			2,444,642			2,456,250			2,462,885			2,433,094			2,470,875
Period end common shares outstanding		2,421,983			2,422,050			2,440,850			2,447,624			2,462,880
Common shares repurchased		67			18,800			6,774			15,216			8			25,641			36,341
Common stock market capitalization	$	36,935		$	38,147		$	39,395		$	43,445		$	42,209
ASSET QUALITY
Gross charge-offs	$	52		$	33		$	22		$	153		$	33		$	107		$	459
Net charge-offs		44			21			2			87			23			67			406
Allowance for loan losses		2,781			2,718			2,691			2,586			2,554
Nonperforming assets (NPAs)		577			615			431			673			1,092
Net charge-off/average loans ratio		0.07	%		0.03	%		0.00	%		0.14	%		0.04	%		0.04	%		0.23	%
Allowance for loan losses/period-end loans		1.08			1.09			1.09			1.01			1.04
NPAs/loans and other real estate		0.23			0.25			0.17			0.26			0.44
Allowance for loan losses/nonperforming loans		481.98			441.75			623.64			452.77			233.80
CAPITAL & LIQUIDITY
Period-end tangible equity to assets		10.91	%		10.54	%		10.77	%		10.36	%		10.89	%
Average equity to assets		10.84			10.94			10.79			11.01			10.88
Average equity to loans		14.74			14.97			14.56			14.67			14.65
Average loans to deposits		102.86			101.48			101.28			97.52			96.68
AVERAGE BALANCES
Assets	$	345,481		$	341,297		$	343,023		$	332,243		$	329,448		$	343,205		$	326,236
Earning assets		330,219			326,435			326,966			314,236			310,884			327,881			307,856
Loans		254,104			249,395			254,277			249,394			244,675			252,597			239,480
Deposits		247,040			245,767			251,060			255,729			253,073			247,928			252,377
Shareholders’ equity		37,446			37,334			37,021			36,582			35,852			37,320			35,497
ENDING BALANCES
Assets	$	343,743		$	347,104		$	344,808		$	350,270		$	330,121
Earning assets		328,812			329,468			327,711			331,267			311,860
Loans		256,343			249,543			246,984			256,659			245,626
Deposits		245,953			248,176			247,029			259,386			253,594
Shareholders’ equity		37,512			36,577			37,148			36,278			35,948

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,
	2008			2007
ASSETS
Cash and cash equivalents
Cash and due from banks	$	8,592,417		$	11,197,845
Interest-earning deposits in other banks		30,835			75,179
Federal funds sold		1,800,000			0
Total cash and cash equivalents		10,423,252			11,273,024
Securities
Available-for-sale, at fair-value		67,417,273			63,052,850
Restricted stock, at cost		3,220,800			3,105,900
Total securities		70,638,073			66,158,750
Loans		256,343,002			245,626,368
Less allowance for loan losses		2,780,578			2,554,489
Net loans		253,562,424			243,071,879
Premises and equipment, net		7,073,444			7,397,612
Accrued interest receivable and other assets		2,045,872			2,219,472
TOTAL ASSETS	$	343,743,065		$	330,120,737
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	44,217,085		$	42,329,684
Interest-bearing		201,735,720			211,264,649
Total deposits		245,952,805			253,594,333
Short-term borrowings		24,756,834			31,783,926
Other borrowings		33,681,998			7,107,511
Accrued interest payable and other liabilities		1,839,484			1,686,784
Total liabilities		306,231,121			294,172,554
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		6,463,569			6,446,180
Retained earnings		19,449,252			17,552,129
Treasury stock at cost - 245,803 shares in 2008 and 204,906 shares in 2007		(5,014,541	)		(4,348,987	)
Accumulated other comprehensive loss		(60,003	)		(374,806	)
Total shareholders’ equity		37,511,944			35,948,183
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	343,743,065		$	330,120,737

CSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Quarter ended					Nine months ended
	September 30,					September 30,
	2008			2007		2008			2007
Interest and dividend income:
Loans, including fees	$	4,073,175		$	4,633,268	$	12,503,136		$	13,433,102
Taxable securities		800,062			720,952		2,377,551			2,205,401
Nontaxable securities		60,088			62,931		159,510			198,060
Other		32,992			944		102,863			16,324
Total interest and dividend income		4,966,317			5,418,095		15,143,060			15,852,887
Interest expense:
Deposits		1,068,797			1,608,916		3,662,709			4,763,015
Other		457,693			419,497		1,374,994			1,169,545
Total interest expense		1,526,490			2,028,413		5,037,703			5,932,560
Net interest income		3,439,827			3,389,682		10,105,357			9,920,327
Provision for loan losses		107,031			151,264		261,740			353,540
Net interest income after provision for loan losses		3,332,796			3,238,418		9,843,617			9,566,787
Non-interest income
Service charges on deposits accounts		326,006			335,536		952,414			927,894
Trust services		138,128			188,598		489,360			544,873
Securities gains (losses) realized		(35,000	)		0		(35,000	)		5,430
Gain on sale of loans		9,475			10,115		281,309			14,805
Other		235,003			228,032		620,961			817,271
Total non-interest income		673,612			762,281		2,309,044			2,310,273
Non-interest expenses
Salaries and employee benefits		1,532,758			1,485,842		4,596,823			4,327,845
Occupancy expense		183,735			188,166		566,531			554,439
Equipment expense		122,541			131,192		367,312			372,324
Franchise tax expense		108,560			105,892		323,370			311,971
Professional and director fees		95,454			147,009		375,353			453,151
Other expenses		618,796			664,008		1,778,186			1,968,762
Total non-interest expenses		2,661,844			2,722,109		8,007,575			7,988,492
Income before income tax		1,344,564			1,278,590		4,145,086			3,888,568
Federal income tax provision		454,000			415,500		1,375,000			1,254,500
Net income	$	890,564		$	863,090	$	2,770,086		$	2,634,068
Net income per share
Basic	$	0.37		$	0.35	$	1.14		$	1.07
Diluted	$	0.37		$	0.35	$	1.14		$	1.07

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 2008 2007 Assets $343,743 $330,121 Net loans $253,562 $243,072 Securities $70,638 $66,159 Deposits $245,953 $253,594 Shareholders’ equity $37,512 $35,948 Net income $2,770 $2,634 Earnings per share $1.14 $1.07 Book value per outstanding share $15.49 $14.60 KEY RATIOS AT OR FOR THE NINE MONTHS ENDED SEPTEMBER 30 2008 2007 Return on average assets 1.08% 1.08% Return on average equity 9.91% 9.92% Net interest margin (tax equivalent) 4.15% 4.36% Net loans to deposits 103.09% 95.85% Allowance for loan loss to total loans 1.08% 1.04% Shareholders’ equity to total assets 10.91% 10.89% Efficiency ratio 64.03% 64.72% 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 TRADE PRICE            CASH QUARTER            CLOSING            DIVIDEND ENDING            HIGH            LOW            PRICE            DECLARED 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 9/30/08 16.25 14.40 15.25 0.18 QUARTER ENDING ADDITIONAL STOCK INFORMATION STOCK LISTING Common: Symbol — CSBB.OB STOCK TRANSFER Registrar & Transfer Company Attn: Investor Relations 10 Commerce Drive Cranford, NJ 07016 (800) 3685948 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) 6749015 or (800) 6549015 “Remember to call CSB for all your financial needs, whether to borrow, save or invest.”

DEAR FELLOW SHAREHOLDER CSB Bancorp, Inc. continues to deliver solid financial performance in spite of turmoil in the national and global financial markets. With a very strong capital position, substantial liquidity, and very high asset quality, we are committed to safety and soundness while meeting the financial needs of the communities we serve and delivering a fair return to our shareholders. CSB’s net earnings totaled $890 thousand in the third quarter, or $0.37 per share. For the nine months ended September 30, net income of $2.77 million is ahead of the prior year by $136 thousand, or $0.07 per share. The Company has no direct exposure to the types of problematic loans and investments that have created the current crisis in the national and global financial markets. Net loan chargeoffs during the first nine months of the year have been very low and nonperforming asset levels are also well below our historical norms. As always, we remain vigilant for any signs of deterioration in the asset quality of our loan and investment portfolios. We have made excellent progress in planning for CSB’s acquisition of Indian Village Bancorp and its wholly owned subsidiary Indian Village Community Bank. We anticipate finalizing the transaction on Friday, October 31, 2008. The following day, banking centers in Gnadenhutten, New Philadelphia and North Canton will open for business as Commercial & Savings Bank locations. These three new markets will provide future growth opportunities for CSB beyond our current and newly acquired deposits and loans in Tuscarawas and Stark counties. Our view of the general economy is that recessionary conditions will likely remain for the balance of 2008 and most or all of 2009. While CSB’s markets are not immune to economic slowdown, we continue to provide the communities we serve with liquidity needed to sustain economic activity and growth. In return, our local economy provides the Company with a diversified customer base that, coupled with CSB’s broad range of financial services, affords some degree of earnings protection during economic downturns. The national and global financial crisis will eventually lead to significant changes in the banking industry. Over the next few years, government officials will reshape the regulatory landscape and a number of weaker financial institutions will become unable to sustain their present form. Difficult economic and regulatory environments present challenges for any organization, including community banks. However, CSB’s financial position provides strength for periods such as these, and in fact, affords the means to consider further opportunities for enhancing shareholder value. CSB’s board and management will continue to evaluate such opportunities from the disciplined perspective of safe and sound banking practices. On behalf of the board of directors, we enclose the third quarter 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) SEPTEMBER 30 2008 2007 ASSETS: Cash and due from banks $8,623 $11,273 Federal funds sold 1,800 0 Securities 70,638 66,159 Net loans 253,562 243,072 Premises & equipment, net 7,074 7,398 Other assets 2,046 2,219 TOTAL ASSETS $343,743 $330,121 LIABILITIES: Deposits $245,953 $253,594 Securities sold under agreements to repurchase 22,757 21,384 Shortterm borrowings 2,000 0 Fed funds purchased 0 10,400 Other borrowings 33,682 7,108 Other liabilities 1,839 1,687 TOTAL LIABILITIES $306,231 $294,173 SHAREHOLDERS’ EQUITY: Common stock $16,674 $16,674 Additional paidin capital 6,464 6,446 Retained earnings 19,449 17,552 Treasury stock (5,015) (4,349) Accumulated other comprehensive loss (60) (375) TOTAL SHAREHOLDERS’ EQUITY $37,512 $35,948 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $343,743 $330,121 CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED SEPTEMBER 30 NINE MONTHS ENDED SEPTEMBER 30 2008 2007 2008 2007 INTEREST INCOME: Interest and fees on loans $4,073 $4,633 $12,503 $13,433 Interest on securities 860 784 2,537 2,404 Other interest income 33 1 103 16 TOTAL INTEREST INCOME 4,966 5,418 15,143 15,853 INTEREST EXPENSE: Interest on deposits 1,069 1,609 3,663 4,763 Other interest expense 457 419 1,375 1,170 TOTAL INTEREST EXPENSE 1,526 2,028 5,038 5,933 Net interest income 3,440 3,390 10,105 9,920 Provision for loan losses 107 151 262 353 Net interest income after provision for loan losses 3,333 3,239 9,843 9,567 Noninterest income 709 762 2,344 2,305 Gain (loss) on securities (35) 0 (35) 5 Noninterest expense 2,663 2,722 8,007 7,988 Net income before federal income taxes 1,344 1,279 4,145 3,889 Federal income tax provision 454 416 1,375 1,255 NET INCOME $890 $863 $2,770 $2,634 EARNINGS PER SHARE $0.37 $0.35 $1.14 $1.07