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 22, 2013

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:

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

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

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

¨ 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 22, 2013, CSB Bancorp, Inc. issued a press release announcing its earnings for the three month period ended September 30, 2013. A copy of this press release and related financial tables are furnished herein as Exhibit 99.1.

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, 2013.

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 22, 2013		Senior Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

CSB BANCORP, INC. REPORTS THIRD QUARTER EARNINGS

Third Quarter Highlights

	Quarter Ended September 30, 2013	Quarter Ended September 30, 2012
Diluted earnings per share	$0.52	$	0.45
Net Income	$1,407,000	$	1,231,000
Return on average common equity	10.79%		9.41	%
Return on average assets	0.96%		0.86	%

Millersburg, Ohio – October 22, 2013 – CSB Bancorp, Inc. (CSBB) today announced third quarter 2013 net income of $1.4 million or $.52 per basic and diluted share, as compared to $1.2 million or $.45 per basic and diluted share for the same period in 2012.

Annualized returns on average common equity (“ROE”) and average assets (“ROA”) for the quarter were 10.79% and 0.96%, respectively, compared with 9.41% and 0.86% for the third quarter of 2012.

Eddie Steiner, President and CEO commented, “We continue to focus on growing relationships with current and new customers. The bank’s average loan balances have increased 8% in the past year, and although margins remain tight, this growth has provided a 4% increase in loan interest income.”

Revenue totaled $5.9 million in the third quarter, a 7% increase from the prior-year third quarter. Gain on sale of securities contributed $149 thousand to revenue in third quarter 2013 as the bank adjusted its securities portfolio holdings. Non-interest expense amounted to $3.6 million during the quarter, an increase of $106 thousand or 3% from the same quarter in the prior year. The Company’s third quarter efficiency ratio amounted to 62.1% as compared to 62.7% for the same quarter in the prior year.

Average total assets during the quarter amounted to $582 million, an increase of $13 million or 2% above the same quarter of the prior year. Average loan balances of $375 million were $27 million or 8% above prior year third quarter, while average securities balances of $134 million increased $310 thousand or 0.2% as compared to third quarter 2012.

Total assets amounted to $594 million on September 30, 2013, up $25 million or 4% from September 30, 2012. Net loan balances at quarter end totaled $372 million, up $24 million or 7% from the year-ago quarter, while securities balances of $145 million were $4 million or 3% higher than year ago balances. On a linked-quarter basis, net loans declined by $1 million and securities balances increased by $12 million.

Average commercial loan balances, including commercial real estate, declined by $1 million or 0.4% during the quarter ended September 30, 2013. Average residential mortgage balances decreased by $551 thousand or 1% during the third quarter. Average home equity balances increased $587 thousand or 1% during the quarter due to a promotional campaign. There were no significant changes in the remainder of the bank’s loan portfolio, which includes installment, credit card and other loan balances totaling less than $10 million in outstanding balances.

The bank recorded net loan charge-offs totaling $78 thousand for the quarter. The bank’s annualized net charge-offs year to date equate 0.05% of average loan balances. Nonperforming assets totaled $2.4 million or 0.63% of total loans plus other real estate at quarter end, compared to $3.7 million or 1.05% at the end of the third quarter in the prior year. Delinquent loan balances amounted to 1.44% of total loans on September 30, 2013 down from 1.77% in September 2012.

The Company funded $210 thousand in loan loss provision during the third quarter and the allowance for loan losses amounted to 1.35% of total loans on September 30, 2013. The ratio of the allowance for loan losses to nonperforming loans stood at 214% at the end of the quarter.

Commenting on the Company’s credit quality, Steiner noted that the Company’s non-performing asset balances have continued to demonstrate a general pattern of improvement for the past three years.

Deposit balances totaled $481 million on September 30, 2013, an increase of $27 million or 6% from September 30 of the prior year. Average total deposits during the quarter of $469 million were 3% above the prior year’s third quarter average, while increasing by $8 million or 2% from the immediate prior quarter.

Within the deposit category, average non-interest-bearing account balances increased $9 million, or 9% during the quarter. Average interest-bearing checking, money market and traditional savings balances increased $3 million or 2% during the quarter, while average time deposit balances decreased $4 million or 3% during the quarter. In addition to the changes in average deposit balances, the average balance of securities sold under repurchase agreement during the third quarter increased by $5 million or 11% during the quarter. The Company’s repurchase agreements, while considered short-term borrowings, are primarily tied to overnight customer sweep accounts and the increase is attributed in part to seasonal increases in business activity among some portions of the bank’s customer base.

Shareholders’ equity totaled $52.1 million on September 30, 2013 with 2.7 million common shares outstanding. The tangible equity to assets ratio amounted to 7.9% on September 30, 2013. The Company declared a common dividend of $.18 per share during the quarter. Based on the September 30, 2013 closing stock price of $19.15 per share, the Company’s annual dividend yield approximates 3.8%.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio, with approximate assets of $594 million as of September 30, 2013. 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 sixteen banking centers in Holmes, Wayne, Tuscarawas 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
EARNINGS	2013 3rd Qtr			2013 2nd Qtr			2013 1st Qtr			2012 4th Qtr			2012 3rd Qtr			2013 9 months			2012 9 months
Net interest income FTE (a)	$	4,755		$	4,668		$	4,767		$	4,543		$	4,499		$	14,190		$	13,353
Provision for loan losses		210			210			210			206			206			630			617
Other income		1,190			1,066			1,038			1,149			1,073			3,294			3,055
Other expenses		3,634			3,663			3,559			3,818			3,528			10,856			10,632
FTE adjustment (a)		78			76			75			73			73			229			217
Net income		1,407			1,247			1,362			1,120			1,231			4,016			3,427
Diluted earnings per share		0.52			0.45			0.50			0.41			0.45			1.47			1.25
PERFORMANCE RATIOS
Return on average assets (ROA)		0.96	%		0.88	%		0.96	%		0.77	%		0.86	%		0.93	%		0.82	%
Return on average common equity (ROE)		10.79	%		9.32	%		10.43	%		8.50	%		9.41	%		10.18	%		8.95	%
Net interest margin FTE (a)		3.46	%		3.49	%		3.56	%		3.33	%		3.34	%		3.50	%		3.37	%
Efficiency ratio		62.11	%		63.40	%		60.72	%		63.61	%		62.66	%		62.08	%		64.17	%
Number of full-time equivalent employees		165			159			164			162			168
MARKET DATA
Book value/common share	$	19.06		$	18.78		$	19.31		$	19.17		$	19.05
Period-end common share mkt value		19.15			19.25			19.20			17.00			18.25
Market as a % of book		100.47	%		102.50	%		99.43	%		88.68	%		95.80	%
Price-to-earnings ratio		10.19			10.64			10.85			10.24			11.77
Cash dividends/common share	$	0.18		$	0.18		$	0.18		$	0.18		$	0.18		$	0.54		$	0.54
Common stock dividend payout ratio		34.62	%		40.00	%		36.00	%		43.90	%		40.00	%
Average basic common shares		2,736,634			2,736,555			2,736,060			2,735,157			2,734,799			2,736,419			2,734,799
Average diluted common shares		2,738,638			2,738,708			2,738,300			2,735,328			2,736,316			2,738,498			2,735,927
Period end common shares outstanding		2,736,634			2,736,634			2,736,060			2,736,060			2,734,799
Common shares repurchased		0			0			0			0			0			0			0
Common stock market capitalization	$	52,407		$	52,680		$	52,532		$	46,513		$	49,910
ASSET QUALITY
Gross charge-offs	$	91		$	95		$	16		$	304		$	39		$	202		$	203
Net charge-offs (recoveries)		78			69			(14	)		287			16			133			38
Allowance for loan losses		5,077			4,945			4,804			4,580			4,661
Nonperforming assets (NPAs)		2,368			2,394			2,187			3,362			3,713
Net charge-off/average loans ratio		0.08	%		0.07	%		(0.02	)%		0.32	%		0.02	%		0.05	%		0.02	%
Allowance for loan losses/period-end loans		1.35			1.31			1.29			1.26			1.32
NPAs/loans and other real estate		0.63			0.63			0.59			0.92			1.05
Allowance for loan losses/nonperforming loans		214.38			206.60			219.66			137.23			127.28
CAPITAL & LIQUIDITY
Period-end tangible equity to assets		7.92	%		8.11	%		8.39	%		8.06	%		8.25	%
Average equity to assets		8.89			9.39			9.20			9.11			9.15
Average equity to loans		13.81			14.30			14.20			14.70			14.97
Average loans to deposits		79.81			81.36			80.57			76.87			76.33
AVERAGE BALANCES
Assets	$	582,200		$	571,569		$	575,925		$	575,498		$	569,142		$	576,573		$	561,310
Earning assets		545,907			537,165			543,068			542,150			536,093			542,056			528,598
Loans		374,579			375,447			373,064			356,555			347,682			374,369			338,272
Deposits		469,353			461,488			463,030			463,862			455,491			464,672			450,057
Shareholders’ equity		51,745			53,677			52,960			52,415			52,063			52,764			51,124
ENDING BALANCES
Assets	$	593,895		$	571,068		$	568,852		$	586,900		$	568,783
Earning assets		554,165			534,806			538,674			544,727			535,402
Loans		377,434			378,191			373,367			364,580			352,748
Deposits		480,861			462,845			457,530			475,443			454,299
Shareholders’ equity		52,149			51,391			52,830			52,453			52,101

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 differs from net interest income under U.S. generally accepted accounting principles.

CSB BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

dollars in thousands, except per share data

	September 30, 2013			September 30, 2012
ASSETS
Cash and cash equivalents
Cash and due from banks	$	16,683		$	12,913
Interest-earning deposits in other banks		31,437			41,762
Federal funds sold		499			—
Total cash and cash equivalents		48,619			54,675
Securities
Available-for-sale, at fair-value		102,453			134,889
Held-to-maturity		36,808			—
Restricted stock, at cost		5,463			5,463
Total securities		144,724			140,352
Loans held for sale		70			540
Loans		377,434			352,748
Less allowance for loan losses		5,077			4,661
Net loans		372,357			348,087
Goodwill and core deposit intangible		5,521			5,659
Bank owned life insurance		9,486			8,237
Premises and equipment, net		8,550			8,425
Accrued interest receivable and other assets		4,568			2,808
TOTAL ASSETS	$	593,895		$	568,783
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	117,925		$	91,022
Interest-bearing		362,936			363,277
Total deposits		480,861			454,299
Short-term borrowings		46,044			43,011
Other borrowings		12,511			16,738
Accrued interest payable and other liabilities		2,330			2,634
Total liabilities		541,746			516,682
Shareholders’ equity
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares in 2013 and 2012		18,629			18,629
Additional paid-in capital		9,964			9,994
Retained earnings		29,501			26,342
Treasury stock at cost - 243,968 shares in 2013 and 245,803 in 2012		(4,958	)		(5,015	)
Accumulated other comprehensive (loss) income		(987	)		2,151
Total shareholders’ equity		52,149			52,101
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	593,895		$	568,783

CSB BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

dollars in thousands, except per share data

	Quarter ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Interest and dividend income:
Loans, including fees	$	4,413	$	4,357	$	13,421	$	12,881
Taxable securities		669		638		1,835		2,074
Nontaxable securities		130		120		385		363
Other		23		32		67		112
Total interest and dividend income		5,235		5,147		15,708		15,430
Interest expense:
Deposits		423		559		1,346		1,789
Other		135		162		401		505
Total interest expense		558		721		1,747		2,294
Net interest income		4,677		4,426		13,961		13,136
Provision for loan losses		210		206		630		617
Net interest income after provision for loan losses		4,467		4,220		13,331		12,519
Non-interest income
Service charges on deposits accounts		353		345		1,001		971
Trust services		201		175		641		503
Gain on sale of loans		67		169		283		362
Gain on sale of securities		149		—		159		—
Other		420		384		1,210		1,219
Total non-interest income		1,190		1,073		3,294		3,055
Non-interest expenses
Salaries and employee benefits		2,028		1,985		6,119		5,909
Occupancy expense		245		280		758		767
Equipment expense		182		154		525		448
Franchise tax expense		147		138		440		415
Professional and director fees		174		172		465		621
Federal deposit insurance		90		83		262		238
Amortization of intangible assets		34		37		101		103
Other expenses		734		679		2,186		2,131
Total non-interest expenses		3,634		3,528		10,856		10,632
Income before income tax		2,023		1,765		5,769		4,942
Federal income tax provision		616		534		1,753		1,515
Net income	$	1,407	$	1,231	$	4,016	$	3,427
Net income per share:
Basic	$	0.52	$	0.45	$	1.47	$	1.25
Diluted	$	0.52	$	0.45	$	1.47	$	1.25

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