10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(Mark one)

x ANNUAL REPORT PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2013

OR

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File No. 0-21714

CSB BANCORP, INC.

(Exact name of registrant as specified in its charter)

Ohio	34-1687530
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

91 North Clay Street, Millersburg, Ohio	44654
(Address of principal executive offices)	(Zip code)

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

Securities registered under Section 12(b) of the Act: None

Securities registered under Section 12(g) of the Act:

Common Shares, $6.25 par value

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    ¨  Yes    x  No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    ¨  Yes    x  No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months.    x  Yes    ¨  No

Indicate by check mark if disclosure of delinquent filers in response to Item 405 of Regulation S-K is not contained herein and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check One):

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     ¨  Yes    x  No

At June 30, 2013, the aggregate market value of the voting common equity held by non-affiliates of the registrant, based on a share price of $19.25 per common share (such price being the last trade price on such date) was $48.1 million.

At March 25, 2014, there were outstanding 2,736,634 of the registrant’s common shares, $6.25 par value.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of CSB Bancorp Inc.’s 2013 Annual Report to Shareholders are incorporated by reference into Parts I and II of this Form 10-K.

Portions of CSB Bancorp Inc.’s Proxy Statement dated March 25, 2014 are incorporated by reference in Part III of this Form 10-K.

PART I

ITEM 1. BUSINESS.

General

CSB Bancorp, Inc. (“CSB”), is a registered financial holding company under the Bank Holding Company Act of 1956, as amended, and was incorporated under the laws of the State of Ohio in 1991. The Commercial and Savings Bank of Millersburg, Ohio (the “Bank”), an Ohio banking corporation chartered in 1879, is a wholly-owned subsidiary of the Company. The Bank is a member of the Federal Reserve System, and its deposits are insured up to the maximum amount provided by law by the Federal Deposit Insurance Corporation (“FDIC”). The primary regulators of the Bank are the Federal Reserve Board and the Ohio Division of Financial Institutions. In this Annual Report on Form 10-K sometimes CSB and the Bank are collectively referred to as the “Company.”

Cautionary Statement Regarding Forward-Looking Information

Certain statements contained in this Annual Report on Form 10-K, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipate”, “estimates”, “may”, “feels”, “expects”, “believes”, “plans”, “will”, “would”, “should”, “could” and similar expressions are intended to identify these forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking statements include: (i) projections of income or expense, earnings per share, the payment or non-payment of dividends, capital structure and other financial items; (ii) statements of plans and objectives of the Company and of its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Factors that could cause or contribute to such differences include, without limitation, risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including without limitation the risk factors disclosed in Item 1A of this Annual Report on Form 10-K.

Other factors not currently anticipated may also materially and adversely affect on the Company’s business, financial condition, results of operations or cash flows. There can be no assurance that future results will meet expectations. While the Company believes that the forward-looking statements in this Annual Report on Form 10-K are reasonable, the reader should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. The Company does not undertake, and expressly disclaims, any obligation to update or alter any statements whether as a result of new information, future events or otherwise, except as may be required by applicable law.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those discussed in the forward-looking statements. The Company desires to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

Business Overview and Lending Activities

CSB operates primarily through the Bank and its other subsidiaries, providing a wide range of banking, trust, financial and brokerage services to corporate, institutional and individual customers throughout northeast Ohio. The Bank provides retail and commercial banking services to its customers, including checking and savings accounts, time deposits, IRAs, safe deposit facilities, personal loans, commercial loans, real estate mortgage loans, installment loans, night depository facilities, brokerage and trust services.

The Bank provides residential real estate, commercial real estate, commercial and consumer loans to customers located primarily in Holmes, Tuscarawas, Wayne, Stark and portions of surrounding counties in Ohio. The Bank’s market area has historically exhibited relatively stable economic conditions; however, a pronounced slowdown in economic activity occurred during the latter half of 2008 and the subsequent recovery continues at a slow pace. Unemployment levels in Holmes County have generally been among the lowest in the State of Ohio, while the balance of the Bank’s market area reported unemployment levels below the state average in 2013 and 2012. Residential real estate values have also returned to close to more normalized valuations. Household debt peaked in

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2007 and has fallen as consumers were leery of taking on new loans; however, spending on durable goods, such as autos has begun to return to within the normal range. The Federal Reserve Bank of Cleveland has reported that a lot of Ohio’s growth activity in industrial production is coming from oil and shale. The Company’s market is adjacent to areas of primary shale activity.

Certain risks are involved in providing loans, including, but not limited to, the borrowers’ ability and willingness to repay the debt. Before the Bank extends a new loan or renews an existing loan to a customer, these risks are assessed through a review of the borrower’s past and current credit history, the collateral being used to secure the transaction, the borrower’s character, and other factors. For all commercial loan relationships greater than $275,000, the Bank’s internal credit department performs an annual risk rating review. In addition to this review, an independent outside loan review firm is engaged to review all watch list and adversely classified credits, all commercial loan relationships greater than $750,000, a sample of commercial loan relationships less than $750,000, loans within an industry concentration and a sample of consumer/mortgage loans. In addition, any loan identified as a problem credit by management and/or the external loan review consultants is assigned to the Bank’s “loan watch list,” and is subject to ongoing review by the Bank’s credit department and the assigned loan officer to ensure appropriate action is taken when deterioration has occurred.

Commercial loan rates are variable as well as fixed, and include operating lines of credit and term loans made to small businesses, primarily based on their ability to repay the loan from the cash flow of the business. Business assets such as equipment, accounts receivable and inventory typically secure such loans. When the borrower is not an individual, the Bank generally obtains the personal guarantee of the business owner. As compared to consumer lending, which includes single-family residences, personal installment loans and automobile loans, commercial lending entails significant additional risks. These loans typically involve larger loan balances, are generally dependent on the cash flow of the business and thus may be subject to a greater extent to adverse conditions in the general economy or in a specific industry. Management reviews the borrower’s cash flows when deciding whether to grant the credit in order to evaluate whether estimated future cash flows will be adequate to service principal and interest of the new obligation in addition to existing obligations.

Commercial real estate loans are primarily secured by borrower-occupied business real estate and are dependent on the ability of the related business to generate adequate cash flow to service the debt. Commercial real estate loans are generally originated with a loan-to-value ratio of 80% or less. Commercial construction loans are secured by commercial real estate and in most cases the Bank also provides the permanent financing. The Bank monitors advances and the maximum loan to value ratio is typically limited to the lesser of 90% of cost or 80% of appraisal. Management performs much of the same analysis when deciding whether to grant a commercial real estate loan as when deciding whether to grant a commercial loan.

Residential real estate loans carry both fixed and variable rates and are secured by the borrower’s residence. Such loans are made based on the borrower’s ability to make repayment from employment and other income. Management assesses the borrower’s ability and willingness to repay the debt through review of credit history and ratings, verification of employment and other income, review of debt-to-income ratios and other measures of repayment ability. The Bank generally makes these loans in amounts of 80% or less of the value of the collateral or up to 95% of collateral value with private mortgage insurance. An appraisal from a qualified real estate appraiser or an evaluation primarily based on tax value is obtained for substantially all loans secured by real estate. Residential construction loans are secured by residential real estate that generally will be occupied by the borrower upon completion. The Bank usually makes the permanent loan at the end of the construction phase. Generally, construction loans are made in amounts of 80% or less of the value of the collateral.

Home equity lines of credit are made to individuals and are secured by second or first mortgages on the borrower’s residence. Loans are based on similar credit and appraisal criteria used for residential real estate loans; however, loans up to 100% of the value of the property may be approved for borrowers with excellent credit histories. These loans typically bear interest at variable rates and require certain minimum monthly payments.

Installment loans to individuals include unsecured loans and loans secured by automobiles and other consumer assets. Consumer loans for the purchase of new automobiles generally do not exceed 100% of the purchase price of the automobile. Loans for used automobiles generally do not exceed average wholesale or trade-in values as stipulated in a recent auto-industry used-car price guide. Overdraft protection loans are unsecured personal lines of credit to individuals who have demonstrated good credit character with reasonably assured sources of income and satisfactory credit histories. Consumer loans generally involve more risk than residential mortgage loans because of the type and nature of collateral and, in certain types of consumer loans, absence of collateral. Since these loans are generally repaid from ordinary income of the individual or family unit, repayment may be adversely affected by job loss, divorce, ill health or by a general decline in economic conditions. The Bank assesses the borrower’s ability and willingness to make repayment through a review of credit history, credit ratings, debt-to-income ratios and other measures of repayment ability.

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While CSB’s chief decision-makers monitor the revenue streams of the various financial products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. For a discussion of CSB’s financial performance for the fiscal year ended December 31, 2013, see the Consolidated Financial Statements and Notes to the Consolidated Financial Statements found in Item 8 of this Annual Report on Form 10-K.

Employees

At December 31, 2013, the Company had 177 employees, 136 of which were employed on a full-time basis. CSB has no separate employees not also employed by the Bank. No employees are covered by collective bargaining agreements. Employees are provided benefit programs, some of which are contributory. Management considers its employee relations to be good.

Competition

The Bank operates in a highly competitive industry due, in part, to Ohio law permitting statewide branching by banks, savings and loan associations and credit unions. Ohio and federal law also permits nationwide interstate banking. In its primary market area of Holmes, Tuscarawas, Wayne, Stark and surrounding Ohio counties, the Bank competes for new deposit dollars and loans with several other commercial banks, including both large regional banks and smaller community banks, as well as savings and loan associations, credit unions, finance companies, insurance companies, brokerage firms and investment companies. The Bank believes its presence in the Holmes, Tuscarawas, Wayne and Stark County areas provides the Bank with a competitive advantage due to its ability to make loans and provide services to the local community.

Competition within the financial service industry continues to increase as a result of mergers between, and expansion of, financial service providers within and outside of the Bank’s primary market areas. In addition, the deregulation of the financial services industry (see the discussion of the Gramm-Leach-Bliley Act of 1999 (“GLBA”) in the section of this item captioned “Financial Modernization”) has allowed securities firms and insurance companies that have elected to become financial holding companies to acquire commercial banks and other financial institutions, which can create additional competitive pressure.

Investor Relations

The Company’s website address is www.csb1.com. The Company makes available its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports, free of charge on its website as soon as reasonably practicable after such material is electronically filed with the Securities and Exchange Commission (the “SEC”). The Company also makes available through its website, other reports filed with the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including its proxy statements and reports filed by officers and directors under Section 16(a) of the Exchange Act, as well as the Company’s Code of Ethics. The Company does not intend for information contained in its website to be incorporated by reference into this Annual Report on Form 10-K.

In addition, the Company’s filings with the SEC may be read and copied at the SEC’s Public Reference Room at 450 Fifth Street, NW, Washington DC 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. These filings are also available on the SEC’s website at www.sec.gov free of charge as soon as reasonably practicable after the Company has filed the above referenced reports.

Supervision and Regulation of CSB and the Bank

CSB and the Bank are subject to extensive regulation by federal and state regulatory agencies. The regulation of financial holding companies and their subsidiaries by bank regulatory agencies is intended primarily for the protection of consumers, depositors, federal deposit insurance funds and the banking system as a whole and not for the protection of shareholders.

CSB is registered with the Federal Reserve Board (“FRB”) as a financial holding company under the Bank Holding Company Act, as amended (the “BHC Act”), and is subject to regulation, examination and supervision by the FRB under the BHC Act. CSB is also subject to the disclosure and regulatory requirements of the Securities Exchange Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder, as administered by the SEC.

The Bank, as an Ohio state-chartered bank and member of the Federal Reserve System, is subject to regulation, supervision, and examination by the Ohio Division of Financial Institutions and the FRB. Because the FDIC insures its deposits, the Bank is also subject to certain regulations of that federal agency. The FDIC is an independent federal agency which insures the deposits, up to prescribed statutory limits, of federally-insured banks and savings associations and safeguards the safety and soundness of the financial institution industry. The Bank’s deposits are insured up to applicable limits by the Deposit Insurance Fund of the FDIC and the Bank is subject to deposit insurance assessments to maintain the Deposit Insurance Fund.

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The earnings, dividends and other aspects of the operations and activities of CSB and the Bank are affected by state and federal laws and regulations, and by policies of various regulatory authorities. These policies include, for example, statutory maximum lending rates, requirements on maintenance of reserves against deposits, domestic monetary policies of the FRB, United States fiscal and economic policies, international currency regulations and monetary policies, certain restrictions on relationships with many phases of the securities business and capital adequacy and liquidity restraints.

The following information describes selected federal and state statutory and regulatory provisions that have, or could have, a material impact on the Company’s business. This discussion is qualified in its entirety by reference to the full text of the particular statutory or regulatory provisions. These statutes and regulations are continually under review by the United States Congress and state legislatures and state and federal regulatory agencies. A change in statutes, regulations, or regulatory policies applicable to CSB and its subsidiaries could have a material effect on their respective businesses.

Dodd-Frank Wall Street Reform and Consumer Protection Act

Federal regulators continue to implement many provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), which was signed into law by President Obama on July 21, 2010. The Dodd-Frank Act created many new restrictions and an expanded framework of regulatory oversight for financial institutions, including depository institutions. Currently, federal regulators are still in the process of drafting the implementing regulations for many portions of the Dodd-Frank Act. The Company is closely monitoring all relevant sections of the Dodd-Frank Act to ensure continued compliance with these regulatory requirements. The following discussion summarizes significant aspects of the Dodd-Frank Act that may affect the Company and the Bank:

• the Consumer Financial Protection Bureau has been established and empowered to exercise broad regulatory, supervisory and enforcement authority with respect to both new and existing consumer financial protection laws;

• the deposit insurance assessment base for federal deposit insurance has been expanded from domestic deposits to average assets less average tangible equity;

• the Dodd-Frank Act instructs appropriate federal banking agencies to make the capital requirements for banks and savings and loan holding companies and insured depository institutions countercyclical so that the amount of capital required to be maintained increases in times of economic expansion and decreases in times of economic contraction, consistent with safety and soundness;

• the prohibition on the payment of interest on business demand deposits has been repealed, thereby permitting depository institutions to pay interest on business transaction and other accounts;

• the Dodd-Frank Act permanently increases the $250,000 limit for FDIC deposit insurance;

• financial holding companies, such as the Company, are required to be well-capitalized and well-managed and must continue to be both well-capitalized and well-managed in order to acquire banks located outside their home state;

• the Dodd-Frank Act extended the application to most bank holding companies of the same leverage and risk-based capital requirements that apply to insured depository institutions, which, among other things, will disallow treatment of trust preferred securities as Tier 1 capital under certain circumstances;

• new corporate governance requirements, which are generally applicable to most larger public companies, now require new compensation practices, including, but not limited to, providing shareholders the opportunity to cast a non-binding vote on executive compensation, to consider the independence of compensation advisors and new executive compensation disclosure requirements;

• the Dodd-Frank Act amended the Electronic Fund Transfer Act to, among other things, give the FRB the authority to establish rules regarding interchange fees charged for electronic debit transactions by payment card issuers having assets over $10 billion and to enforce a new statutory requirement that such fees be reasonable and proportional to the actual cost of a transaction to the issuer; and

• increases authority of the FRB to examine financial holding companies and their non-bank subsidiaries.

Many aspects of the Dodd-Frank Act are still subject to rulemaking and will take effect over several years, making it difficult to anticipate the overall financial impact on the Company, its subsidiaries, their respective customers or the financial services industry more generally.

Regulation of Financial Holding Companies

As a bank holding company, which is also designated as a financial holding company under GLBA, CSB’s activities are subject to extensive regulation by the FRB. CSB is required to file reports with the FRB and provide such additional information as the FRB may require, and is subject to regular examination and inspection by the FRB.

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The FRB has extensive enforcement authority over financial holding companies, including the ability to assess civil money penalties, issue cease and desist orders and require that a financial holding company divest subsidiaries (including subsidiary banks). The FRB may initiate enforcement actions for violations of laws and regulations, and for unsafe and unsound practices. Under FRB policies, a financial holding company is expected to act as a “source of strength” to its subsidiary banks and to commit resources to support those subsidiary banks. Under this policy, the FRB may require a financial holding company to contribute additional capital to an undercapitalized subsidiary bank.

The BHC Act requires the prior approval of the FRB in cases where a financial holding company proposes to acquire direct or indirect ownership or control of more than 5% of the voting shares of any bank that is not already majority-owned by it, acquire all or substantially all of the assets of another bank or another financial or bank holding company, or merge or consolidate with any other financial or bank holding company.

The FRB also regulates and provides limitations on transactions between affiliates of a bank holding company, loans to directors and officers of bank affiliates, securities transactions and liability for losses incurred by commonly controlled banks in certain circumstances.

Financial Modernization

Pursuant to GLBA, a bank holding company may become a financial holding company if each of its subsidiary banks is “well-capitalized” under regulatory “prompt corrective action” provisions, is “well-managed,” and has at least a “satisfactory” rating under the Community Reinvestment Act (“CRA”) by filing a declaration with the FRB that the bank holding company wishes to become a financial holding company. CSB has been a financial holding company since 2005. No prior regulatory approval is required for a financial holding company to acquire certain companies, other than banks and savings associations, that are financial in nature as determined by the FRB.

GLBA defines “financial in nature” to include securities underwriting, dealing and market making; sponsoring mutual funds and investment companies; insurance underwriting and agency activities; merchant banking activities; and activities that the FRB has determined to be closely related to banking. Bank subsidiaries of a financial holding company must continue to be well-capitalized and well-managed in order to continue to engage in activities that are financial in nature without regulatory actions or restrictions, which could include divestiture of the subsidiary or subsidiaries. In addition, a financial holding company or a bank subsidiary of a financial holding company may not acquire a company that is engaged in activities that are financial in nature unless each of the subsidiary banks of the financial holding company or bank has a CRA rating of satisfactory or better.

Regulatory Capital

The FRB has adopted risk-based capital guidelines for bank holding companies and state member banks. These capital guidelines are based on the “International Convergence of Capital Measurement and Capital Standards” (Basel I), published by the Basel Committee on Banking Supervision (the “Basel Committee”). The guidelines provide a systematic analytical framework, which makes regulatory capital requirements sensitive to differences in risk profiles among banking organizations, takes off-balance sheet exposures expressly into account in evaluating capital adequacy and minimizes disincentives to holding liquid, low-risk assets. Capital levels as measured by these standards are also used to categorize financial institutions for purposes of certain prompt corrective action regulatory provisions.

Under the guidelines, the minimum ratio of total capital to risk-weighted assets (including certain off-balance sheet items such as standby letters of credit) is 8%. At least half of the minimum total risk-based capital ratio (4%) must be composed of “Tier 1” risk-based capital, which consists of common shareholders’ equity, minority interests in certain equity accounts of consolidated subsidiaries and a limited amount of qualifying preferred stock and qualified trust preferred securities (although the Tier 1 capital treatment of trust preferred securities will be phased out under the Dodd-Frank Act in certain circumstances), less goodwill and certain other intangible assets, including the unrealized net gains and losses, after applicable taxes, on available-for-sale securities carried at fair value. The remainder of total risk-based capital (commonly known as “Tier 2” risk-based capital) may consist of certain amounts of hybrid capital instruments, mandatory convertible debt, subordinated debt, preferred stock not qualifying as Tier 1 capital, loan and lease loss allowance and net unrealized gains on certain available-for-sale equity securities, all subject to limitations established by the guidelines.

Under the guidelines, capital is compared to the relative risk related to the balance sheet. To derive the risk included in the balance sheet, one of four risk weights (0%, 20%, 50% and 100%) is applied to different balance sheet and off-balance sheet assets, primarily based on the relative credit risk of the counterparty. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The FRB has also established minimum leverage ratio guidelines for bank holding companies. The FRB guidelines provide for a minimum ratio of Tier 1 capital to average assets (excluding the loan and lease loss allowance,

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goodwill and certain other intangibles), or “leverage ratio,” of 3% for bank holding companies that meet certain criteria, including having the highest regulatory rating, and 4% for all other bank holding companies. The guidelines further provide that bank holding companies making acquisitions will be expected to maintain strong capital positions substantially above the minimum levels.

The FRB’s review of certain bank holding company transactions is affected by whether the applying bank holding company is “well-capitalized.” To be deemed “well-capitalized,” the bank holding company must have a Tier 1 risk-based capital ratio of at least 6%, a leverage ratio of at least 5% and a total risk-based capital ratio of at least 10%, and must not be subject to any written agreement, order, capital directive or prompt corrective action directive issued by the FRB to meet and maintain a specific capital level for any capital measure.

In December 2010, the Basel Committee on Banking Supervision, an international forum for cooperation on banking supervisory matters, announced the “Basel III” capital standards, which proposed new capital requirements for banking organizations. On July 2, 2013, the Federal Reserve Board adopted a final rule implementing a revised capital framework based in part on the Basel III capital standards and, on July 9, 2013, the Office of the Comptroller of the Currency also adopted a final rule and the FDIC adopted an interim final rule implementing a revised capital framework based in part on the Basel III capital standards. The rule will not begin to phase in until January 1, 2014 for larger institutions and January 1, 2015 for smaller, less complex banking organizations such as the Company. The rule will be fully phased in by January 1, 2019.

The implementation of the final rule will lead to higher capital requirements and more restrictive leverage and liquidity ratios than those currently in place. Specifically, the rule imposes the following minimum capital requirements on federally insured financial institutions: (1) a new minimum common equity tier 1 capital to risk-weighted assets ratio of 4.5%; (2) a leverage capital ratio of 4%; (3) a tier 1 risk-based capital ratio of 6%; and (4) a total risk-based capital ratio of 8%. Under the rule, common equity generally consists of common stock, retained earnings and limited amounts of minority interests in the form of common stock. In addition, in order to avoid limitations on capital distributions, such as dividend payments and certain bonus payments to executive officers, the rule requires insured financial institutions to hold a capital conservation buffer of common equity tier 1 capital above its minimum risk-based capital requirements. The capital conservation buffer will be phased in over time, becoming effective on January 1, 2019, and will consist of an additional amount of common equity equal to 2.5% of risk-weighted assets. The rule will also revise the regulatory agencies’ prompt corrective action framework by incorporating the new regulatory capital minimums and updating the definition of common equity. Until the rule is fully phased in, we cannot predict the ultimate impact it will have upon the financial condition or results of operations of the Company.

Prompt Corrective Action

The federal banking agencies have established a system of “prompt corrective action” to resolve certain of the problems of undercapitalized institutions. This system is based on five capital level categories for insured depository institutions: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized” and “critically undercapitalized.”

The federal banking agencies may (or in some cases must) take certain supervisory actions depending upon a bank’s capital level. For example, the banking agencies must appoint a receiver or conservator for a bank within 90 days after it becomes “critically undercapitalized” unless the bank’s primary regulator determines, with the concurrence of the FDIC, that other action would better achieve regulatory purposes. Banking operations otherwise may be significantly affected depending on a bank’s capital category. For example, a bank that is not “well capitalized” generally is prohibited from accepting brokered deposits and offering interest rates on deposits higher than the prevailing rate in its market, and the holding company of any undercapitalized depository institution must guarantee, in part, specific aspects of the bank’s capital plan for the plan to be acceptable.

In order to be “well-capitalized,” a bank must have total risk-based capital of at least 10%, Tier 1 risk-based capital of at least 6% and a leverage ratio of at least 5%, and the bank must not be subject to any written agreement, order, capital directive or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. As of December 31, 2013, the Bank meets the ratio requirements to be deemed “well-capitalized” according to the guidelines described above. See Note 12 of the Notes to Consolidated Financial Statements located on page 51 of CSB’s 2013 Annual Report, which is incorporated herein by reference.

Deposit Insurance

Substantially all of the deposits of the Bank are insured up to applicable limits by the Deposit Insurance Fund of the FDIC, and the Bank is assessed deposit insurance premiums to maintain the Deposit Insurance Fund. Insurance premiums for each insured institution are determined based upon the institution’s capital level and supervisory rating

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provided to the FDIC by the institution’s primary federal regulator and other information deemed by the FDIC to be relevant to the risk posed to the Deposit Insurance Fund by the institution. The assessment rate is then applied to the amount of the institution’s deposits to determine the institution’s insurance premium.

The FDIC issued final rules effective April 2011 that changed the deposit insurance assessment base, as required by the Dodd-Frank Act. As adopted, the final rule changed the deposit insurance assessment base from domestic deposits to average assets less average tangible equity. The final rule also set a target size for the Deposit Insurance Fund at 2% of insured deposits and implements a lower assessment rate schedule when the fund reaches 1.15% and, in lieu of dividends, provides for a lower rate schedule when the reserve ratio reaches 2% and 2.5%. The final rule went into effect beginning with the second quarter of 2011. The change to the assessment base and assessment rates, as well as the Deposit Insurance Fund restoration time frame, has lowered the Company’s deposit insurance assessment.

As insurer, the FDIC is authorized to conduct examinations of, and to require reporting by, federally-insured institutions. It also may prohibit any federally-insured institution from engaging in any activity the FDIC determines by regulation or order to pose a serious threat to the Deposit Insurance Fund. The FDIC also has the authority to take enforcement actions against insured institutions. Insurance of deposits may be terminated by the FDIC upon a finding that the institution has engaged or is engaging in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC or written agreement entered into with the FDIC. The management of the Bank does not know of any practice, condition or violation that might lead to termination of deposit insurance.

Fiscal and Monetary Policies

The business and earnings of CSB are affected significantly by the fiscal and monetary policies of the United States Government and its agencies. CSB is particularly affected by the policies of the FRB, which regulates the supply of money and credit in the United States. These policies are used in varying degrees and combinations to directly affect the availability of bank loans and deposits, as well as the interest rates charged on loans and paid on deposits.

The monetary policies of the FRB have had a significant effect on the operating results of financial institutions in the past and are expected to continue to have significant effects in the future. In view of the changing conditions in the economy, the money markets and the activities of monetary and fiscal authorities, the Company can make no definitive predictions as to future changes in interest rates, credit availability or deposit levels.

Limits on Dividends and Other Payments

There are various legal limitations on the extent to which subsidiary banks may finance or otherwise supply funds to their parent holding companies. Under applicable federal and state laws, subsidiary banks may not, subject to certain limited exceptions, make loans or extensions of credit to, or investments in the securities of, their bank holding companies. Subsidiary banks are also subject to collateral security requirements for any loan or extension of credit permitted by such exceptions.

Payments of dividends by the Bank are limited by applicable state and federal laws and regulations. The ability of CSB to obtain funds for the payment of dividends and for other cash requirements is largely dependent on the amount of dividends, which may be declared by the Bank. However, the FRB expects CSB to serve as a source of strength for the Bank and may require CSB to retain capital for further investment in the Bank, rather than pay dividends to CSB shareholders. Payment of dividends by the Bank may be restricted at any time at the discretion of its applicable regulatory authorities, if they deem such dividends to constitute an unsafe or unsound banking practice. These provisions could have the effect of limiting CSB’s ability to pay dividends on its common shares.

The FRB issued a policy statement that provides that insured banks and bank holding companies should generally only pay dividends out of current operating earnings. At December 31, 2013, approximately $7.5 million of the total shareholders’ equity of the Bank was available for payment to CSB without the prior approval of the applicable regulatory authorities. See Note 12 of the “Notes to Consolidated Financial Statements located on page 52 of CSB’s 2013 Annual Report.

Customer Privacy

Under the GLBA, federal banking agencies have adopted rules that limit the ability of banks and other financial institutions to disclose non-public information about consumers to nonaffiliated third parties. These limitations require distribution of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain personal information to nonaffiliated third parties.

USA Patriot Act

In response to the events of September 11, 2001, the United and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “Patriot Act”) was signed into law in October, 2001. The Patriot Act gives the federal government powers to address terrorist threats through enhanced security

8

measures, expanded surveillance powers, increased information sharing and broadened anti-money laundering requirements. Title III of the Patriot Act takes measures intended to encourage information sharing among federal banking agencies and law enforcement officials. Further, certain provisions of Title III impose affirmative obligations on a broad range of financial institutions to, among other things, establish a program specifying procedures for obtaining identifying information from customers seeking to open new accounts and establish enhanced due diligence policies, procedures and controls designed to detect and report suspicious activity. The Bank has established policies and procedures that are believed to be compliant with the requirements of the Patriot Act.

Corporate Governance

The Sarbanes-Oxley Act of 2002 (“SOX”) was signed into law on July 30, 2002. SOX contains important requirements for public companies with regard to financial disclosure and corporate governance. In accordance with section 302(a) of SOX, written certifications by CSB’s Chief Executive Officer and Chief Financial Officer are required to certify that CSB’s quarterly and annual reports filed with the SEC do not contain any untrue statement of a material fact or fail to state a material fact. CSB has also implemented a program designed to comply with Section 404 of SOX, which includes identification of significant processes and accounts, documentation of the design of control effectiveness over process and entity-level controls and testing of the operating effectiveness of key controls. Pursuant to provisions of the Dodd-Frank Act which provide a permanent exemption for smaller companies which have a public float of less than $75 million, from the SOX attestation requirement by the external accountants on internal controls. CSB is exempt from the requirement for external accountant attestation on internal controls. Management’s assessment of internal controls over financial reporting is located on page 23 of the CSB 2013 Annual Report.

Effect of Environmental Regulation

Compliance with federal, state and local provisions regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, has not had a material effect upon the capital expenditures, earnings or competitive position of CSB or its subsidiaries. CSB believes the nature of the operations of its subsidiaries has little, if any, environmental impact. CSB, therefore, anticipates no material capital expenditures for environmental control facilities for its current fiscal year or for the foreseeable future.

CSB believes its primary exposure to environmental risk is through the lending activities of the Bank. In cases where management believes environmental risk potentially exists, the Bank mitigates environmental risk exposure by requiring environmental site assessments at the time of loan origination to confirm collateral quality as to commercial real estate parcels posing higher than normal potential for environmental impact, as determined by reference to present and past uses of the subject property and adjacent sites.

Executive and Incentive Compensation

In June 2010, the federal banking agencies issued joint interagency guidance on incentive compensation policies (the “Joint Guidance”) intended to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. This principles-based guidance, which covers all employees that have the ability to materially affect the risk profile of an organization, either individually or as part of a group, is based upon the key principles that a banking organization’s incentive compensation arrangements should: (i) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks; (ii) be compatible with effective internal controls and risk management; and (iii) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors.

Pursuant to the Joint Guidance, the FRB will review as part of a regular, risk-focused examination process, the incentive compensation arrangements of financial institutions such as the Company. Such review will be tailored to each organization based on the scope and complexity of the organization’s activities and the prevalence of incentive compensation arrangements. The findings of the supervisory initiatives will be included in reports of examination and deficiencies will be incorporated into the institution’s supervisory ratings, which can affect the institution’s ability to make acquisitions and take other actions. Enforcement actions may be taken against an institution if its incentive compensation arrangements, or related risk-management control or governance processes, pose a risk to the organization’s safety and soundness and prompt and effective measures are not being taken to correct the deficiencies.

Future Legislation

Various and significant legislation affecting financial institutions and the financial industry is from time to time introduced by the U.S. Congress, as evidenced by the sweeping reforms in the Dodd-Frank Act adopted in 2010. Such legislation may continue to change banking statutes and the operating environment of CSB and its subsidiaries in substantial and unpredictable ways, and could significantly increase or decrease costs of doing business, limit or expand permissible activities or affect the competitive balance among financial institutions. With the enactment of the Dodd-Frank Act and the continuing implementation of final rules and regulations thereunder, the nature and extent of future legislative and regulatory changes affecting financial institutions remains very unpredictable.

9

Statistical Disclosures

The following schedules present, for the periods indicated, certain financial and statistical information of the Company as required under the SEC’s Industry Guide 3 “Statistical Disclosures by Bank Holding Companies,” or a specific reference as to the location of required disclosures in the Company’s 2013 Annual Report.

Distribution of Assets, Liabilities and Stockholders’ Equity; Interest Rates and Interest Differential

The information set forth under the heading “Average Balance Sheets and Net Interest Margin Analysis” located on page 11 of the Company’s 2013 Annual Report is incorporated by reference herein.

The information set forth under the heading “Rate/Volume Analysis of Changes in Income and Expense” located on page 12 of the Company’s 2013 Annual Report is incorporated by reference herein.

Investment Portfolio

The following is a schedule of the carrying value of securities at December 31:

(Dollars in thousands)
	2013		2012		2011
Securities available-for-sale, at fair value
U.S. Treasury security	$	997	$	100	$	100
U.S. Government agencies		22,301		35,980		28,323
Mortgage-backed securities of government agencies		54,300		68,695		75,628
Other mortgage-backed securities		235		344		704
Asset-backed securities of government agencies		2,775		2,823		—
State and political subdivisions		16,447		16,883		14,880
Corporate bonds		4,539		4,397		3,330
Equity securities		128		69		61
Total	$	101,722	$	129,291	$	123,026
Securities held-to-maturity, at fair value
U.S. Government agencies	$	18,358	$	—	$	—
Mortgage-backed securities of government agencies		24,285		—		—
Total	$	42,643	$	—	$	—

10

The following is a schedule of maturities for each category of debt securities and the related weighted average yield of such securities as of December 31, 2013:

	One Year or Less					After One Year Through Five Years					Maturing After Five Years Through Ten Years					After Ten Years					Total
	Amortized					Amortized					Amortized					Amortized					Amortized
(Dollars in thousands)	Cost		Yield			Cost		Yield			Cost		Yield			Cost		Yield			Cost		Yield
Available-for-sale:
U.S. Treasury	$	—		—	%	$	1,005		0.71	%	$	—		—	%	$	—		—	%	$	1,005		0.71	%
U.S. Government agencies		—		—			6,000		0.81			13,000		1.97			3,999		1.18			22,999		1.53
Mortgage-backed securities of government agencies		106		2.78			281		4.40			917		4.44			53,151		2.54			54,455		2.59
Other mortgage-backed securities		—		—			—		—			230		5.34			—		—			230		5.34
Asset-backed securities of government agencies		—		—			—		—			—		—			2,739		1.54			2,739		1.54
State and political subdivisions		749		5.35			6,143		4.28			7,733		4.23			1,594		5.31			16,219		4.41
Corporate bonds							3,925		2.16			575		1.04			—		—			4,500		2.02
Total	$	855		5.03	%	$	17,354		2.40	%	$	22,455		2.86	%	$	61,483		2.48	%		102,147		2.57	%
Held-to-maturity:
U.S. Government agencies	$	—		—	%	$	—		—	%	$	7,717		2.44	%	$	11,469		2.14	%	$	19,186		2.26	%
Mortgage-backed securities of government agencies		—		—			—		—			—		—			25,164		1.88			25,164		1.88
Total	$	—		—	%	$	—		—	%	$	7,717		2.44	%	$	36,633		1.96	%	$	44,350		2.04	%

The weighted average yields are calculated using amortized cost of investments and are based on coupon rates for securities purchased at par value, and on effective interest rates considering amortization or accretion if securities were purchased at a premium or discount. The weighted average yield on tax-exempt obligations is presented on a tax-equivalent basis based on the Company’s marginal federal income tax rate of 34%.

11

Loan Portfolio

Total loans on the balance sheet are comprised of the following classifications at December 31:

(Dollars in thousands)	2013		2012		2011		2010		2009
Commercial	$	117,478	$	104,899	$	89,828	$	78,540	$	69,351
Commercial real estate		129,828		119,192		106,332		104,829		107,794
Residential real estate		111,445		110,412		103,518		108,832		114,882
Construction and land development		13,444		23,358		18,061		16,515		13,761
Consumer		6,687		6,480		6,216		6,715		7,464
Total loans	$	378,882	$	364,341	$	323,955	$	315,431	$	313,252

The following is a schedule of maturities of loans based on contract terms and assuming no amortization or prepayments, excluding residential real estate mortgage and installment loans, as of December 31, 2013:

	Maturing
	One Year or Less		One Through Five Years		After Five Years		Total
(Dollars in thousands)
Commercial	$	54,770	$	26,739	$	35,969	$	117,478
Commercial real estate		4,489		8,010		117,329		129,828
Construction and land development		3,317		1,880		8,247		13,444
Total	$	62,576	$	36,629	$	161,545	$	260,750

The following is a schedule of fixed rate and variable rate commercial, commercial real estate and construction and land development loans due after one year from December 31, 2013.

(Dollars in thousands)	Fixed Rate		Variable Rate
Total commercial, commercial real estate and construction and land development loans due after one year	$	62,017	$	136,157

The following schedule summarizes nonaccrual, past due and restructured loans.

(Dollars in thousand)	2013		2012		2011		2010		2009
Loans accounted for on a nonaccural basis	$	2,234	$	3,206	$	2,908	$	3,905	$	3,786
Accruing loans that are contractually past due 90 days or more as to interest or principal payments		1,036		131		581		685		355
Totals	$	3,270	$	3,337	$	3,489	$	4,590	$	4,141

The policy for placing loans on nonaccrual status is to cease accruing interest on loans when management believes that collection of interest is doubtful, when commercial loans are past due as to principal and interest 90 days or more or when mortgage loans are past due as to principal and interest 120 days or more, except that in certain circumstances interest accruals are continued on loans deemed by management to be well-secured and in process of collection. In such cases, loans are individually evaluated in order to determine whether to continue income recognition after 90 days beyond the due date. When loans are placed on nonaccrual, any accrued interest is charged against interest income. Consumer loans are not placed on nonaccrual but are charged-off after 90 days past due.

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Information regarding impaired loans at December 31 is as follows:

(Dollars in thousands)	2013		2012		2011
Loans acquired with credit impairment	$	—	$	—	$	—
Total recorded investment of impaired loans		10,655		10,210		7,263
Less portion for which no allowance for loan loss is allocated		907		1,975		—
Portion of impaired loan balance for which an allowance for loan losses is allocated		9,748		8,235		7,263
Portion of allowance for loan losses allocated to the impaired loan balance at December 31		784		779		522

For the year ended December 31, 2013, interest income recognized on impaired loans amounted to $388 thousand, while $472 thousand would have been recognized had the loans been performing under their contractual terms. For the year ended December 31, 2012, interest income recognized on impaired loans amounted to $337 thousand, while $517 thousand would have been recognized had the loans been performing under their contractual terms. For the year ended December 31, 2011, interest income recognized on impaired loans amounted to $169 thousand while $190 thousand would have been recognized had the loans been performing under their contractual terms.

Impaired loans are comprised of commercial and commercial real estate loans, and are carried at the present value of expected cash flows discounted at the loan’s effective interest rate or at fair value of the collateral if the loan is collateral dependent. A portion of the allowance for loan losses is allocated to impaired loans.

Smaller-balance homogeneous loans are evaluated for impairment in total. Such loans include residential first-mortgage loans secured by one to four-family residences, residential construction loans, automobile loans, home equity loans and second-mortgage loans. These consumer loans are included in nonaccrual and past due disclosures above as well as impaired loans when they become nonperforming. Commercial loans and mortgage loans secured by other properties are evaluated individually for impairment. When analysis of borrower operating results and financial condition indicates that underlying cash flows of the borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment. Impaired loans or portions thereof, are charged-off when deemed uncollectible.

At December 31, 2013, no loans were identified that management had serious doubts about the borrowers’ ability to comply with present loan repayment terms that are not included in the tables set forth above. On a monthly basis, the Company internally classifies certain loans based on various factors. At December 31, 2013, these amounts, including impaired and nonperforming loans, amounted to $11.0 million of substandard loans and $0 doubtful loans.

As of December 31, 2013, there are no concentrations of loans greater than 10% of total loans that are not otherwise disclosed as a category of loans in the loan portfolio table set forth above.

13

Summary of Loan Loss Experience

The following schedule presents an analysis of the allowance for loan losses, average loan data and related ratios for the years ended December 31:

(Dollars in thousands)	2013			2012			2011			2010			2009
LOANS
Average loans outstanding during period	$	374,821		$	342,868		$	318,781		$	313,549		$	317,254
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	4,580		$	4,082		$	4,031		$	4,060		$	3,394
Loans charged-off:
Commercial		(190	)		(29	)		(487	)		(479	)		(320	)
Commercial real estate		(108	)		(283	)		(68	)		(187	)		(254	)
Residential real estate		(82	)		(106	)		(297	)		(488	)		(177	)
Construction and land development		—			—			(41	)		(143	)		—
Consumer		(48	)		(89	)		(121	)		(92	)		(134	)
Total loans charged-off		(428	)		(507	)		(1,014	)		(1,389	)		(885	)
Recoveries of loans previously charged-off:
Commercial		25			16			38			93			55
Commercial real estate		—			—			—			—			86
Residential real estate		18			102			19			—			—
Construction and land development		—			—			—			—			—
Consumer		50			64			58			32			73
Total loans recoveries		93			182			115			125			214
Net loans charged-off		(335	)		(325	)		(899	)		(1,264	)		(671	)
Provision charged to operating expense		840			823			950			1,235			1,337
Balance at end of period	$	5,085		$	4,580		$	4,082		$	4,031		$	4,060
Ratio of net charge-offs to average loans outstanding for period		0.09	%		0.09	%		0.28	%		0.40	%		0.21	%

The allowance for loan losses balance and provision charged to expense are determined by management based on periodic reviews of the loan portfolio, past loan loss experience, economic conditions and various other circumstances subject to change over time. In making this judgment, management reviews selected large loans, as well as impaired loans, other delinquent, nonaccrual and problem loans and loans to industries experiencing economic difficulties. The collectability of these loans is evaluated after considering current operating results and financial position of the borrower, estimated market value of collateral, guarantees and the Company’s collateral position versus other creditors. Judgments, which are necessarily subjective, as to the probability of loss and amount of such loss are formed on these loans, as well as other loans taken together.

14

The following schedule is a breakdown of the allowance for loan losses allocated by type of loan and related ratios. While management’s periodic analysis of the adequacy of the allowance for loan losses may allocate portions of the allowance for specific problem-loan situations, the entire allowance is available for any loan charge-offs that occur.

	Allocation of the Allowance for Loan Losses
	(Dollars in thousands)
	Allowance Amount		Percentage of Loans in Each Category to Total Loans			Allowance Amount		Percentage of Loans in Each Category to Total Loans			Allowance Amount		Percentage of Loans in Each Category to Total Loans			Allowance Amount		Percentage of Loans in Each Category to Total Loans			Allowance Amount		Percentage of Loans in Each Category to Total Loans
	December 31, 2013					December 31, 2012					December 31, 2011					December 31, 2010					December 31, 2009
Commercial	$	1,219		31.00	%	$	933		28.79	%	$	1,024		27.73	%	$	1,179		24.90	%	$	1,031		22.14	%
Commercial real estate		1,872		34.27			1,902		32.71			1,673		32.82			1,183		33.23			1,338		34.41
Residential real estate		1,205		29.41			1,096		30.30			894		31.95			1,057		34.50			1,140		36.68
Construction & land development		178		3.55			253		6.41			180		5.58			213		5.24			246		4.39
Consumer		91		1.77			76		1.79			78		1.92			80		2.13			77		2.38
Unallocated		520					320					233					319					228
Total	$	5,085		100.00	%	$	4,580		100.00	%	$	4,082		100.00	%	$	4,031		100.00	%	$	4,060		100.00	%

15

Deposits

The following is a schedule of average deposit amounts and average rates paid on each category for the periods indicated:

	Average Amounts Outstanding Year ended December 31,						Average Rate Paid Year ended December 31,
(Dollars in thousands)	2013		2012		2011		2013			2012			2011
Noninterest-bearing demand	$	106,769	$	91,148	$	70,543		N/A			N/A			N/A
Interest-bearing demand		70,648		63,346		53,896		0.06	%		0.08	%		0.08	%
Savings deposits		141,638		135,035		91,232		0.10			0.17			0.25
Time deposits		149,340		163,997		152,194		1.03			1.25			1.70
Total deposits	$	468,395	$	453,526	$	367,865

The Bank does not have any material deposits by foreign depositors.

The following is a schedule of maturities of time certificates of deposit in amounts of $100,000 or more as of December 31, 2013:

(Dollars in thousands)
Three months or less	$	8,021
Over three through six months		4,799
Over six through twelve months		11,483
Over twelve months		18,259
Total	$	42,562

Return on Equity and Assets

	2013			2012			2011
Return on average assets		0.90	%		0.80	%		0.78	%
Return on average shareholders’ equity		9.93			8.85			7.57
Dividend payout ratio		37.60			43.30			53.40
Average shareholders’ equity to average assets		9.08			9.10			10.33

Short-Term Borrowings

Short-term borrowings consist of securities sold under agreements to repurchase, short-term advances through Federal Home Loan Bank and federal funds purchased. Securities sold under agreements to repurchase generally mature one (1) day from the transaction date. Federal funds purchased generally have overnight terms. Information concerning short-term borrowings is summarized as follows:

(Dollars in thousands)	2013			2012			2011
Securities sold under agreements to repurchase, federal funds purchased and short-term advances at period end	$	48,671		$	43,992		$	37,073
Weighted average interest rate at period end		0.15	%		0.20	%		0.25	%
Maximum outstanding at any month end during the year		48,671			43,992			37,073
Average amount outstanding		45,330			40,893			32,577
Weighted average rates during year		0.15	%		0.22	%		0.43	%

16

ITEM 1A. RISK FACTORS.

Risks Related to the Company’s Business

The Company’s exposure to credit risk could adversely affect its earnings and financial condition.

Credit risk is the risk of losing principal and interest income because borrowers fail to repay loans. The Company’s earnings may be negatively impacted if it fails to manage credit risk, as the origination of loans is an integral part of the Company’s business. Factors which may affect the ability of borrowers to repay loans include a slowing of the local economy in which the Company operates, a downturn in one or more business sectors in which the Company’s customers operate or a rapid increase in interest rates. All of the Company’s loan portfolios, particularly commercial real estate loans, may continue to be affected by the sustained economic weakness of the Company’s north central Ohio market and the impact of higher unemployment rates. There has been a slow improvement in the housing market across the Company’s footprint, reflecting a bottom to prices and excess inventories of houses beginning to be sold. A return to further declines in home values and reduced levels of home sales in the Company’s market may have a negative effect on the Company’s business, financial condition or results of operation.

The Company’s allowance for loan losses may be insufficient.

The Company maintains an allowance for loan losses that it believes is a reasonable estimate of known and inherent losses within the loan portfolio. The Company makes various assumptions and judgments about the collectability of its loan portfolio, including the creditworthiness of its borrowers and the value of the real estate and other assets serving as collateral for the repayment of loans. Through a periodic review and consideration of the loan portfolio, management determines the amount of the allowance for loan losses by considering general market conditions, credit quality of the loan portfolio, the collateral supporting the loans and performance of customers relative to their financial obligations with us. The amount of future losses is susceptible to changes in economic, operating and other conditions, including changes in interest rates, which may be beyond the Company’s control, and these losses may exceed current estimates. The Company cannot fully predict the amount or timing of losses or whether the loss allowance will be adequate in the future. If the Company’s assumptions prove to be incorrect, the allowance for loan losses may not be sufficient to cover losses inherent in the Company’s loan portfolio, resulting in additions to the allowance. Excessive loan losses and significant additions to the Company’s allowance for loan losses could have a material adverse impact on the Company’s business, financial condition and results of operations. In addition, bank regulators periodically review the Company’s allowance for loan losses and may require the Company to increase its provision for loan losses or recognize further loan charge-offs. Any such increase in the Company’s allowance for loan losses or loan charge-offs as required by these regulatory authorities might have a material adverse effect on the Company’s business, financial condition or results of operations.

The Company has significant exposure to risks associated with commercial and commercial real estate loans.

As of December 31, 2013, approximately 65% of the Company’s loan portfolio consisted of commercial and commercial real estate loans. These loans are generally viewed as having more inherent risk of default than residential mortgage or consumer loans. The repayment of these loans often depends on the successful operation of a business. These loans are more likely to be adversely affected by weak conditions in the economy. Also, the commercial loan balance per borrower is typically larger than that for residential mortgage loans and consumer loans, indicating higher potential losses on an individual loan basis. The deterioration of one or a few of these loans could cause a significant increase in nonperforming loans and a reduction in interest income. An increase in nonperforming loans could result in an increase in the provision for loan losses and an increase in loan charge-offs, both of which could have a material adverse effect on the Company’s business, financial condition and results of operations.

A significant portion of the Company’s loan portfolio is secured by real property. During the ordinary course of business, the Company may foreclose on and take title to properties securing certain loans. In doing so, there is a risk that hazardous or toxic substances could be found on these properties. If hazardous or toxic substances are found, the Company may be liable for remediation costs, as well as for personal injury and property damage.

The Company is subject to liquidity risk.

The Company requires liquidity to meet its deposit and debt obligations as they come due. The Company’s access to funding sources in amounts adequate to finance its activities or on terms that are acceptable to it could be impaired by factors that affect it specifically or the financial services industry or economy generally. Factors that could reduce its access to liquidity sources include a downturn in the north central Ohio market, difficult credit markets or adverse regulatory actions. The Company’s access to deposits may also be affected by the liquidity needs of its depositors. In particular, a substantial majority of the Company’s liabilities are demand, savings, interest checking and money market deposits, which are payable on demand or upon several days’ notice, while by comparison, a substantial

17

portion of its assets are loans, which cannot be called or sold in the same time frame. Although the Company historically has been able to replace maturing deposits and advances as necessary, it might not be able to replace such funds in the future, especially if a large number of its depositors sought to withdraw their accounts, regardless of the reason. A failure to maintain adequate liquidity could have a material adverse effect on the Company’s business, financial condition or results of operations.

The Company’s business strategy includes planned growth. The Company’s financial condition and results of operations could be negatively affected if the Company fails to grow or fails to manage its growth effectively.

The Company’s ability to grow successfully will depend on a variety of factors, including the continued availability of desirable business opportunities, its ability to integrate acquisitions and manage growth and the Company’s ability to raise capital. While the Company believes it has the management resources and systems in place to successfully manage future growth, there can be no assurance that growth opportunities will be available.

Failure to manage the Company’s growth effectively could have a material adverse effect on its business, future prospects, financial condition or results of operations and could adversely affect the Company’s ability to successfully implement its business strategy.

The Company may need to raise capital in the future, but capital may not be available when needed or at acceptable terms.

Federal and state banking regulators require the Company and the Bank to maintain adequate levels of capital to support its operations. In addition, in the future the Company may need to raise additional capital to support its business or to finance acquisitions, if any, or the Company may otherwise elect to raise additional capital in anticipation of future growth opportunities. Many financial institutions have sought to raise considerable amounts of capital in recent years in response to deterioration in their results of operations and financial condition. Such overall market demand for capital may diminish the Company’s ability to raise additional capital if and when it is needed.

The Company’s ability to raise additional capital for CSB or the Bank’s needs will depend on conditions at that time in the capital markets, overall economic conditions, CSB’s financial performance and condition, and other factors, many of which are outside our control. There is no assurance that, if needed, CSB will be able to raise additional capital on favorable terms or at all. An inability to raise additional capital may have a material adverse effect on our ability to expand operations, and on our financial condition, results of operations and future prospects.

Strong competition within the market in which the Company operates could reduce its ability to attract and retain business.

The Company will need to adjust to competition in both originating loans and attracting deposits. Competition in the financial services industry is intense, as the Company competes with securities dealers, finance and insurance companies, mortgage brokers and investment advisors. As a result of their size and ability to achieve economies of scale, certain of the Company’s competitors offer a broader range of products and services than we can offer. The Company’s ability to achieve its financial objectives will depend on its ability to deliver or expand product delivery systems and changes in technology required by customers. The increasingly competitive environment is, in part, a result of changes in regulation, changes in technology and product delivery systems and the accelerating pace of consolidation among financial service providers.

Unauthorized disclosure of sensitive or confidential client or customer information, whether through a breach of our computer systems or otherwise, could severely harm our business.

As part of the Company’s business, it collects, processes and retains sensitive and confidential client and customer information on behalf of the Company’s subsidiaries and other third parties. Despite the security measures the Company has in place, its facilities and systems, and those of the Company’s third-party service providers, may be vulnerable to security breaches, acts of vandalism, computer viruses, misplaced or lost data, programming and/or human errors or other similar events. If a breach of information security occurs, information can be lost or misappropriated resulting in financial loss or costs to the Company or damages to others. Any security breach involving the misappropriation, loss or other unauthorized disclosure of confidential customer information, whether by the Company or by its vendors, could severely damage the Company’s reputation, expose it to the risks of litigation and liability or disrupt the Company’s operations and may have a material adverse effect on the Company’s business.

The Bank’s ability to pay dividends is subject to regulatory limitations which, to the extent the Company requires such dividends in the future, may affect its ability to pay dividends or repurchase its stock.

As a financial holding company, CSB is a separate legal entity from the Bank and does not have significant operations of its own. Dividends from the Bank provide a significant source of capital for CSB. The availability of dividends from the Bank is limited by various statutes and regulations. The FRB issued a policy statement that

18

provides that insured banks and bank holding companies should generally only pay dividends out of current operating earnings. It is possible, depending upon the financial condition of the Bank and other factors, that the FRB or Ohio Division of Financial Institutions, as the Bank’s primary regulators, could assert that the payment of dividends or other payments by the Bank are an unsafe or unsound practice. In the event the Bank is unable to pay dividends to CSB, CSB may not be able to pay its obligations as they become due, repurchase its stock, or pay dividends on its common stock. Consequently, the potential inability to receive dividends from the Bank could adversely affect CSB’s business, financial condition, results of operations or prospects.

The trading volume and price of the Company’s common shares can be volatile.

The Company’s common shares are very thinly traded and, therefore, susceptible to price swings. The Company’s common shares are traded on the Over the Counter Bulletin Board under the symbol “CSBB;” however, the investment community does not actively follow the Company’s common shares. Given the lower trading volume of the Company’s common shares, significant sales of the Company’s common shares, or the expectation of significant sales, could cause the Company’s share price to fall.

Risks Relating to Economic and Market Conditions

Difficult market conditions and economic trends have adversely affected the financial services industry and the Company’s business.

Dramatic declines in real estate value, along with high unemployment, have disrupted the national credit and capital markets since 2008. Although economic conditions have improved, certain sectors, such as real estate and manufacturing, remain weak and unemployment remains high. Local governments and many businesses are still in serious difficulty due to lower consumer spending and decreased liquidity in the credit markets.

Market conditions have also led to the failure and merger of a number of financial institutions. These failures, as well as projected future failures, have had a significant negative impact on the capitalization levels and on the Deposit Insurance Fund, which has led to a significant increase in deposit insurance premiums paid by financial institutions.

The Company’s success depends, to a certain extent, upon local and national economic and political conditions as well as governmental monetary policies. Conditions such as inflation, recession, unemployment, changes in interest rates, money supply and other factors beyond the Company’s control may adversely affect asset quality, deposit levels and loan demand and, therefore, the Company’s earnings. Because the Company has a significant amount of real estate loans, additional decreases in real estate values could adversely affect the value of property used as collateral and the Company’s ability to sell the collateral upon foreclosure. Adverse changes in the economy may also have a negative effect on the ability of borrowers to make timely repayments of their loans, which would have an adverse impact on the Company’s earnings. If during a period of reduced real estate values, the Company is required to liquidate the collateral securing loans to satisfy the debt or to increase its allowance for loan losses, it could materially reduce the Company’s profitability and adversely affect its financial condition. The substantial majority of the Company’s loans are to individuals and businesses located in Holmes, Tuscarawas, Wayne and Stark Counties in Ohio. Consequently, further significant declines in north central Ohio could have a material adverse effect on the Company’s business, financial condition or results of operations.

Changes in interest rates could adversely affect income and financial condition.

The Company’s earnings and financial condition are substantially dependent upon net interest income, which is the difference between interest earned from loans and investments and interest paid on deposits and borrowings. Market interest rates are largely beyond the Company’s control, and they fluctuate in response to general economic conditions and the policies of various governmental and regulatory agencies, in particular, the FRB. Changes in interest rates will influence the origination of loans, the purchase of investments and the level of prepayments on the Company’s loans and the receipt of payments on mortgage-backed securities resulting in fluctuations of income and cash flow. Changes in interest rates also can affect the value of loans, securities, mortgage servicing rights and assets under management. Although fluctuations in market interest rates are neither completely predictable nor controllable, the Company’s Asset Liability Committee (ALCO) meets periodically to monitor the Company’s interest rate sensitivity position and oversee the Company’s financial risk management by establishing policies and operating limits. If short-term interest rates remain at their historically low levels for a prolonged period of time the Company’s interest-earning assets could continue to reprice downward while the Company’s interest-bearing liability rates, especially customer deposit rates, could remain at current levels. This would adversely impact the Company’s net income and financial condition. During 2013, the Company’s net interest margin and spread improved during a low interest rate environment, as cash was redeployed into loans and investments. For more information, see Item 7a. Quantitative and Qualitative Disclosures about Market Risk in this Annual Report on Form 10-K, which summarizes the Company’s exposure to interest rate risk.

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Risks Related to the Legal and Regulatory Environment

Legislative or regulatory changes or actions, or significant litigation, could adversely impact the Company or the businesses in which it is engaged.

The financial services industry is extensively regulated. The Company and its subsidiaries are subject to extensive state and federal regulation, supervision and legislation that govern almost all aspects of its operations. Laws and regulations may change from time to time and are primarily intended for the protection of consumers, depositors and the Deposit Insurance Fund, and not to benefit the Company’s shareholders. The impact of any changes to laws and regulations or other actions by regulatory agencies may negatively impact the Company or its ability to increase the value of its business. Regulatory authorities have extensive discretion in connection with their supervisory and enforcement activities, including the imposition of restrictions on the operation of an institution, the classification of assets by an institution and the adequacy of an institution’s allowance for loan losses. Additionally, actions by regulatory agencies or significant litigation against the Company could cause it to devote significant time and resources to defending the Company’s business and may lead to penalties that materially affect the Company and its shareholders.

As discussed earlier, comprehensive revisions to the regulatory capital framework were included in the final rule adopted by the FRB in July 2013 based upon the Basel III capital standards. The final rule specifically revises what qualifies as regulatory capital, raises minimum requirements and introduces the concept of additional capital buffers. The need to maintain more and higher quality capital as well as greater liquidity going forward could limit our business activities, including lending, and our ability to expand, either organically or through acquisitions. In addition, the new liquidity standards could require us to increase our holdings of highly liquid short-term investments, thereby reducing our ability to invest in longer-term assets even if longer-term assets are more desirable from a balance sheet management perspective.

Increases in FDIC insurance premiums may have a material adverse effect on our earnings.

The FDIC maintains the Deposit Insurance Fund to resolve the cost of bank failures. In 2011, the FDIC approved a final rule that changed the deposit insurance assessment base and assessment rate schedule, adopted a new large-bank pricing assessment scheme and set a target size for the Deposit Insurance Fund. The rule, as mandated by the Dodd-Frank Act, finalized a target size for the Deposit Insurance Fund at 2% of insured deposits. The final rule went into effect beginning with the second quarter of 2011.

The Company has a limited ability to control the amount of premiums we are required to pay for FDIC insurance. If there are additional financial institution failures or other significant legislative or regulatory changes, the FDIC may be required to increase assessment rates or take actions similar to those taken during 2009. Increases in FDIC insurance assessment rates may materially adversely affect the Company’s business, financial condition or results of operations.

The recently enacted Dodd-Frank Act may adversely impact the Company’s business, financial condition or results of operations.

On July 21, 2010, the Dodd-Frank Act was signed into law. A detailed discussion regarding the Dodd-Frank Act can be found under the caption “Dodd-Frank Act” in Item 1 of this Annual Report on Form 10-K. The Dodd-Frank Act represents a comprehensive overhaul of the financial services industry within the U.S. There are a number of reform provisions that are likely to significantly impact the ways in which banks and bank holding companies do business.

Among the provisions already implemented that have or may have an effect on the Company are the following:

• the Consumer Financial Protection Bureau has been formed, which has broad powers to adopt and enforce consumer protection regulations;

• the federal law prohibiting the payment of interest on commercial demand deposit accounts was eliminated effective July 21, 2011;

• the standard maximum amount of deposit insurance per customer was permanently increased to $250,000;

• the assessment base for determining deposit insurance premiums has been expanded from domestic deposits to average assets minus average tangible equity;

• public companies in all industries are now required to provide stockholders the opportunity to cast a non-binding advisory vote on executive compensation;

20

• the FRB has imposed on financial institutions with assets of $10 billion or more a cap on the debit card interchange fees the financial institutions may charge; although the cap is not applicable to the Bank, it may have an adverse effect on the Bank as the debit cards issued by the Bank and other smaller banks, which have higher interchange fees, may become less competitive;

• new capital regulations for bank holding companies have been be adopted, which will impose stricter requirements once phased in, and trust preferred securities issued after May 19, 2010 will no longer constitute Tier I capital; and

• new corporate governance requirements applicable generally to all public companies in all industries require new compensation practices and disclosure requirements, including requiring companies to “claw back” incentive compensation under certain circumstances, to consider the independence of compensation advisors and to make additional disclosures in proxy statements with respect to compensation matters.

As many provisions of the Dodd-Frank Act have not yet been implemented and will require interpretation and rule making, the ultimate effect on the Company cannot yet be determined. However, the implementation of certain provisions have already increased compliance costs and the implementation of future provisions will likely increase both compliance costs and fees paid to regulators, along with possibly restricting the operations of the Company.

In December 2013, five federal agencies adopted a final regulation implementing the Volcker Rule provision of the Dodd-Frank Act (the “Volcker Rule”). The Volcker Rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution, subject to certain exceptions. The trading activity includes a purchase or sale as principal of a security, derivative, commodity future or option on any such instrument in order to benefit from short-term price movements or to realize short-term profits. The Volcker Rule exempts specified U.S. Government, agency and/or municipal obligations, and it excepts trading conducted in certain capacities, including as a broker or other agent, through a deferred compensation or pension plan, as a fiduciary on behalf of customers, to satisfy a debt previously contracted, repurchase and securities lending agreements and risk-mitigating hedging activities.

The Volcker Rule also prohibits a banking entity from having an ownership interest in, or certain relationships with, a hedge fund or private equity fund, with a number of exceptions. The Company does not engage in any of the trading activities or have any ownership interest in or relationship with any of the types of funds regulated by the Volcker Rule.

The Company may be a defendant from time to time in the future in a variety of litigation and other actions, which could have a material adverse effect on its business, financial condition or results of operations.

The Company may be involved from time to time in the future in a variety of litigation arising out of its business. Financial institutions like the Company and the Bank are facing a growing number of significant class actions, including those based on the manner of calculation of interest on loans and the assessment of overdraft fees. Future litigation could include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. The Company’s insurance may not cover all claims that may be asserted against it, and any claims asserted against the Company, regardless of merit or eventual outcome, may harm its reputation. Should the ultimate judgments or settlements in any litigation exceed the Company’s insurance coverage, it could have a material adverse effect on the Company’s business, financial condition or results of operations. In addition, the Company may not be able to obtain appropriate types or levels of insurance in the future, nor may the Company be able to obtain adequate replacement policies with acceptable terms, if at all.

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ITEM 1B. UNRESOLVED STAFF COMMENTS.

None.

ITEM 2. PROPERTIES.

The Bank operates sixteen banking centers as noted below:

Location	Address	Owned	Leased
Walnut Creek	4980 Old Pump Street, Walnut Creek, Ohio 44687	X
Winesburg	2225 U.S. 62, Winesburg, Ohio 44690	X
Sugarcreek	127 South Broadway, Sugarcreek, Ohio 44681	X
Charm	4440 C.R. 70, Charm, Ohio 44617		X
Clinton Commons	2102 Glen Drive, Millersburg, Ohio 44654		X
Berlin	4587 S.R. 39 Suite B, Berlin, Ohio 44610		X
South Clay	91 South Clay Street, Millersburg, Ohio 44654	X
Shreve	333 West South Street, Shreve, Ohio 44676	X
Orrville	461 Wadsworth Road, Orrville, Ohio 44667		X
Gnadenhutten	100 South Walnut Street, Gnadenhutten, Ohio 44629	X
New Philadelphia	635 West High Avenue, New Philadelphia, Ohio 44663	X
North Canton	1210 North Main Street, North Canton, Ohio 44720	X
Orrville	330 West High Street, Orrville, Ohio 44667		X
Wooster	305 West Liberty Street, Wooster, Ohio 44691		X
Wooster	3562 Commerce Parkway, Wooster, Ohio 44691	X
Operations Center	91 North Clay Street, Millersburg, Ohio 44654	X

The Bank considers its physical properties to be in good operating condition and suitable for the purposes for which they are being used. All properties owned by the Bank are unencumbered by any mortgage or security interest and in management’s opinion, are adequately insured.

ITEM 3. LEGAL PROCEEDINGS.

In the normal course of business, CSB is subject to pending and threatened legal actions, including claims for which material relief or damages sought are substantial. Although CSB is not able to predict the outcome of such actions, after reviewing pending and threatened actions, management believes that the outcome of any or all such actions will not have a material adverse effect on the results of operations or shareholders’ equity of CSB. Further, there are no material legal proceedings in which any director, executive officer, principal shareholder or affiliate of CSB is a party or has a material interest that is adverse to CSB or the Bank. None of the routine litigation in which CSB or the Bank is involved is expected to have a material adverse impact on the financial position or results of operations of CSB or the Bank.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

Information contained in the section captioned “Common Stock and Shareholder Information” on page 22 of the Annual Report is incorporated herein by reference.

ISSUER PURCHASES OF EQUITY SECURITIES

On July 7, 2005 CSB filed a Current Report on Form 8-K with the SEC announcing that its Board of Directors approved a Stock Repurchase Program authorizing the repurchase of up to 10% of the Company’s common shares

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then outstanding. Repurchases may be made from time to time as market and business conditions warrant, in the open market, through block purchases and in negotiated private transactions. The Company did not repurchase any of its common shares during 2013.

PERFORMANCE GRAPH

The following graph compares the yearly stock change and the cumulative total shareholder return on CSB’s Common Shares during the five-year period ended December 31, 2013, with the cumulative total return on the Standard and Poor’s 500 Stock Index and the NASDAQ Community Bank Stock Index. The comparison assumes $100 was invested on December 31, 2008 in CSB’s Common Shares and in each of the indicated indices and assumes reinvestment of dividends.

	2008		2009		2010		2011		2012		2013
CSBB	$	100	$	107	$	114	$	128	$	136	$	157
S & P 500		100		126		146		149		175		228
NASDAQ Bank		100		81		90		84		99		140

ITEM 6. SELECTED FINANCIAL DATA.

Information contained in the section captioned “Selected Financial Data” on page 9 of the Annual Report is incorporated herein by reference.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Information contained in the section captioned “2013 Financial Review” on pages 8 through 22 of the Annual Report is incorporated herein by reference.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Information contained in the section captioned “Quantitative and Qualitative Disclosures About Market Risk” on pages 18-20 of the Annual Report is incorporated herein by reference.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Information contained in the Consolidated Financial Statements and related notes and the Report of Independent Registered Public Accounting Firm thereon, on pages 24 through 59 of the Annual Report is incorporated herein by reference.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES.

Evaluation Of Disclosure Controls And Procedures

With the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) was performed, as of the end of the period covered by this Annual Report. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective.

Management’s Report on Internal Control over Financial Reporting

Management’s Assessment of Internal Control over Financial Reporting is contained in the Consolidated Financial Statements and related notes on page 23 of the Annual Report and is incorporated herein by reference. This annual report does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to the rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this filing.

Changes In Internal Control Over Financial Reporting

There have been no significant changes during the quarter ended December 31, 2013, in the Company’s internal controls over financial reporting (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) or in other factors that materially affected, or are reasonably likely to materially affect the internal control over financial reporting.

Item 9B. Other Information.

None

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

The information required by Item 401 of Regulation S-K concerning the directors of the Company and the nominees for election as directors of the Company at the Annual Meeting of Shareholders to be held on April 23, 2014 (the “2014 Annual Meeting”) is incorporated herein by reference from the information to be included under the caption “Proposal 1 – Election of Directors” in the Company’s definitive proxy statement relating to the 2014 Annual Meeting to be filed with the SEC (“2014 Proxy Statement”). The information required by Item 401 of Regulation S-K concerning the executive officers of the Company is incorporated herein by reference from the information to be included under the caption “Executive Officers” in the 2014 Proxy Statement.

Compliance with Section 16(a) of the Securities Exchange Act of 1934, as amended.

The information required by Item 405 of Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “Section 16(a) Beneficial Ownership Reporting Compliance” in the 2014 Proxy Statement.

Code of Ethics.

The Company has adopted a Code of Ethics that applies to its senior financial officers, including the Chief Executive Officer and Chief Financial Officer. The Company has posted its Code of Ethics on its website at www.csb1.com/invest_documents.asp. The Company plans to satisfy SEC disclosure requirements regarding any amendments to, or waiver of, the Code of Ethics relating to its Chief Executive Officer or Chief Financial Officer, and persons performing similar functions, by posting such information on the Company’s website or by making any necessary filings with the SEC. Any person may receive a copy of our Code of Ethics free of charge upon request by calling the Company during business hours or by sending a written request.

Procedures for Recommending Directors Nominees.

Information concerning the procedures by which shareholders may recommend nominees to the Company’s Board of Directors is incorporated herein by reference from the information to be included under the caption “Shareholder Nominations” in the 2014 Proxy Statement. These procedures have not materially changed from those described in CSB’s definitive proxy materials for the 2014 Annual Meeting of Shareholders.

Audit Committee.

The information required by Items 407(d)(4) and (d)(5) of Regulation S-K is incorporated herein by reference from the disclosure to be included under the section “Proposal One – Election of Directors” subsections “Membership and Meetings of the Board and its Committees” and “Committees of the Board of Directors – Audit Committee” in the 2014 Proxy Statement.

ITEM 11. EXECUTIVE COMPENSATION.

The information required by Item 402 of Regulation S-K is incorporated herein by reference from the disclosure to be included under the captions “Discussion of Executive Compensation Programs” and “Executive Compensation and Other Information” in the 2014 Proxy Statement.

The information required by Item 407(e)(4) of Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “Compensation Committee Interlocks and Insider Participation” in the 2014 Proxy Statement.

The information required by Item 407(e)(5) of Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “The Compensation Committee Report” in the 2014 Proxy Statement.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

Equity Compensation Plan Information

	Number of shares of common stock to be issued upon exercise of outstanding options, warrants and rights		Weighted-average exercise price of outstanding options, warrants and rights		Number of shares remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
	(a)		(b)		(c )
Equity compensation plans approved by stockholders		30,760	$	17.90		—
Equity compensation plans not approved by stockholders		—		—		—
Total		30,760	$	17.90		—

Security Ownership of Certain Beneficial Owners and Management

The information required by Item 403 of Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “Beneficial Ownership of Management and Certain Beneficial Owners” in the 2014 Proxy Statement.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

The information required by Item 404 of Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “Certain Relationships and Related Transactions” in the 2013 Proxy Statement. There were no relationships where transactions exceeded $120,000 for the year ended December 31, 2013.

The information required by Item 407(a) of Regulation S-K is incorporated herein by reference from the disclosure to be included under the section “Proposal One – Election of Directors subsection “Membership and Meetings of the Board and its Committees” in the 2014 Proxy Statement.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The information required by this Item 14 is incorporated herein by reference from the disclosure to be included under the captions “Independent Registered Public Accounting Firm Fees” and “Audit Committee Procedures for Pre-Approval of Services by the Independent Public Accounting Firm” in the 2014 Proxy Statement.

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

(a)(1) Financial Statements

The Consolidated Financial Statements (and report thereon) listed below are incorporated by reference from CSB Bancorp, Inc.’s 2013 Annual Report as noted:

Report of Independent Registered Public Accounting Firm (S.R. Snodgrass) –pg. 24.

Consolidated Balance Sheets at December 31, 2013 and 2012–pg. 25.

Consolidated Statements of Income for the years ended December 31, 2013, 2012 and 2011–pg. 26.

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Consolidated Statements of Comprehensive Income for the years ended December 31, 2013, 2012 and 2011–pg. 27.

Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2013, 2012 and 2011–pg. 27.

Consolidated Statements of Cash Flows for the years ended December 31, 2013, 2012 and 2011–pgs. 28-29.

Notes to Consolidated Financial Statements–pgs. 30-59.

(a)(2) Financial Statement Schedules

All schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and have been omitted.

(a)(3) Exhibits

The documents listed below are filed with this Annual Report on Form 10-K as exhibits or incorporated into this Annual Report on Form 10-K by reference as noted:

Exhibit Number	Description of Document
3.1	Amended Articles of Incorporation of CSB Bancorp, Inc., (incorporated by reference to registrant’s Quarterly Report on Form 10-Q filed August 6, 2004, Exhibit 3.1, film number 04958544).
3.1.1	Amended form of Article Fourth of Amended Articles of Incorporation, as effective April 9, 1998 (incorporated by reference to registrant’s Annual Report on Form 10-K filed on March 30, 1999, Exhibit 3.1.1, film number 99579149).
3.2	Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to Registrant’s Form 10-SB).
3.2.1	Amended Article VIII Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to registrant’s Form DEF 14A filed on March 25, 2009, Appendix A, film number 09703970).
4	Form of Certificate of Common Shares of CSB Bancorp, Inc. (incorporated by reference to Registrant’s Form 10-SB).
10	Amended and Restated Separation Agreement and General Release between Rick L. Ginther and The Commercial and Savings Bank of Millersburg, Ohio (incorporated by reference to registrant’s Annual Report on Form 10-K filed on March 26, 2012, Exhibit 10, film number 12714232).
10.1	CSB Bancorp, Inc. Share Incentive Plan (incorporated by reference to registrant’s Form DEF 14A filing, filed on March 18, 2005, Appendix A, film number 08696769).
10.2	Employment Agreement between Paula Meiler and the Commercial and Savings Bank of Millersburg, Ohio (incorporated by reference to registrant’s Annual Report on Form 10-K filed on March 25, 2013, Exhibit 10.1, film number 13714485).
10.3	Amendment to Employment Agreement between Paula Meiler and The Commercial & Savings Bank of Millersburg, Ohio (incorporated by reference to registrant’s Annual Report on Form 10-K filed on March 25, 2013, Exhibit 10.2, film number 13714485).
13	CSB Bancorp, Inc. 2013 Annual Report to Shareholders
21	Subsidiaries of CSB Bancorp, Inc.
23.1	Consent of S.R. Snodgrass, P.C.
31.1	Section 302 Certification of Chief Executive Officer
31.2	Section 302 Certification of Chief Financial Officer
32.1	Section 906 Certification of Chief Executive Officer
32.2	Section 906 Certification of Chief Financial Officer
101	The following materials from CSB’s 2013 Annual Report to Shareholders formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets (ii) Consolidated Statements of Income (iii) Consolidated Statements of Comprehensive Income (iv) Consolidated Statements of Changes in Shareholders’ Equity (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		CSB BANCORP, INC.
		/s/ Eddie L. Steiner
Date:	March 25, 2014	Eddie L. Steiner, President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on March 25, 2014.

Signatures	Title
/s/ Eddie L. Steiner	President and Chief Executive Officer
Eddie L. Steiner
/s/ Paula J. Meiler	Senior Vice President and Chief Financial Officer
Paula J. Meiler
/s/ Pamela S. Basinger	Vice President and Principal Accounting Officer
Pamela S. Basinger
/s/ Robert K. Baker	Director
Robert K. Baker
/s/ Ronald E. Holtman	Director
Ronald E. Holtman
/s/ J. Thomas Lang	Director
J. Thomas Lang
/s/ Daniel J. Miller	Director
Daniel J. Miller
/s/ Jeffery A. Robb, Sr.	Director
Jeffery A. Robb, Sr.
/s/ John R. Waltman	Director
John R. Waltman

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INDEX TO EXHIBITS

Exhibit Number	Description of Document
3.1	Amended Articles of Incorporation of CSB Bancorp, Inc., (incorporated by reference to registrant’s Quarterly Report on Form 10-Q filed August 6, 2004, Exhibit 3.1, film number 04958544).
3.1.1	Amended form of Article Fourth of Amended Articles of Incorporation, as effective April 9, 1998 (incorporated by reference to registrant’s Annual Report on Form 10-K filed on March 30, 1999, Exhibit 3.1.1, film number 99579149).
3.2	Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to registrant’s Form 10-SB).
3.2.1	Amended Article VIII Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to registrant’s Form DEF 14A filed on March 25, 2009, Appendix A, film number 09703970).
4	Form of Certificate of Common Shares of CSB Bancorp, Inc. (incorporated by reference to registrant’s Form 10-SB).
10	Amended and Restated Separation Agreement and General Release between Rick L. Ginther and The Commercial and Savings Bank of Millersburg, Ohio (incorporated by reference to registrant’s Annual Report on Form 10-K filed on March 26, 2012, Exhibit 10, film number 12714232).
10.1	CSB Bancorp, Inc. Share Incentive Plan (incorporated by reference to registrant’s Form DEF 14A filing, filed on March 18, 2005, Appendix A, film number 08696769).
10.2	Employment Agreement between Paula Meiler and the Commercial and Savings Bank of Millersburg, Ohio (incorporated by reference to registrant’s Annual Report on Form 10-K filed on March 25, 2013, Exhibit 10.1, film number 13714485).
10.3	Amendment to Employment Agreement between Paula Meiler and The Commercial & Savings Bank of Millersburg, Ohio (incorporated by reference to registrant’s Annual Report on Form 10-K filed on March 25, 2013, Exhibit 10.2, film number 13714485).
13	CSB Bancorp, Inc. 2013 Annual Report to Shareholders
21	Subsidiaries of CSB Bancorp, Inc.
23.1	Consent of S.R. Snodgrass, P.C.
31.1	Section 302 Certification of Chief Executive Officer
31.2	Section 302 Certification of Chief Financial Officer
32.1	Section 906 Certification of Chief Executive Officer
32.2	Section 906 Certification of Chief Financial Officer
101	The following materials from CSB’s 2013 Annual Report to Shareholders formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets (ii) Consolidated Statements of Income (iii) Consolidated Statements of Comprehensive Income (iv) Consolidated Statements of Changes in Shareholders’ Equity (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements.

29

EX-13

Exhibit 13

Pictured on front cover: Brian Miller, ProVia; Robbie Keim, Keim Lumber; Judy Delaney, Goodwill Industries of Wayne and Holmes Counties

2013 Report to Shareholders  |  CSB Bancorp, Inc.        3

LETTER TO SHAREHOLDERS

FELLOW SHAREHOLDERS:

CSB continues to focus on providing excellent service to our customers, developing our employees, supporting our communities and increasing value for our shareholders.

2013 results were encouraging and continued the Company’s growth and forward performance momentum. Net income increased to $5.2 million, eclipsing last year’s record high, while average total assets climbed to $581 million, the seventh consecutive year of record size for the Company.

Return on average shareholders’ equity amounted to 9.93% and return on average assets equaled 0.90%. Both of these numbers, while respectable, leave considerable room for improvement. We are intent on continuing the upward trend.

Credit quality within the Company’s loan and investment portfolios remained solid during 2013. Net charge-offs totaled 0.09% of average loans for the second year in a row. Loans more than 30 days past due or on nonaccrual amounted to 1.26% of year-end balances. The Company has no significant concentrations within its commercial loan portfolio. At year-end, commercial real estate loans, both owner and non-owner occupied, comprised 34% of total loans, followed by commercial and industrial loans at 31% and residential loans at 29%. Construction and land development, and consumer installment loans, comprised the remainder of loan balances.

Average deposit balances increased for the seventh year in a row and reached a fifth consecutive record high. Our capital levels exceed all regulatory requirements.

CSB also continued to pay a strong dividend, with an average yield of 3.75% over the course of the year. Our annual dividend yield has amounted to at least 3.75% for each of the past seven years based on average published daily closing stock prices. Total return on CSB stock during 2013 amounted to 15.9% when including dividends with stock price appreciation.

GROWTH PLANS

We remain committed to steadily growing the Company. Growth provides scale to increase cash flow for needed investments in infrastructure and personnel, generates capital to move forward when opportunities arise and creates a venue for the continued professional development of staff.

We evaluate growth opportunities within the context of prudent risk management and their fit with our strategic plan. We believe our current market area offers considerable growth potential. Growing our existing customer relationships, attracting new customers and serving each customer very well is the daily focus of every CSB employee.

We are also open to select expansion opportunities. Over the past seven years, the Company has acquired one bank, opened two new branches and purchased two additional branches. We continue to evaluate similar opportunities through the lens of what makes good business sense.

THE BANKING ENVIRONMENT

In our view, the new normal for banking includes interest margins that are lower than historic average, pervasive regulatory guidance, disruptive innovation by less-regulated entities, and a general preference among many customers for digital services. The contributing factors to this outlook are myriad and some are complex, but a few are unmistakably noteworthy.

The plodding economic recovery and sustained low interest rate environment continues to tamp down fundamental momentum for banking, as well as many other industries. However, there are clear signs of slow and steady improvement in the housing market, employment, household financial conditions and consumer spending, both nationally and in our local markets. The banking industry also has been regaining its health from a safety and soundness perspective and making progress toward more normalized earnings.

Congress’ inability to meaningfully address our nation’s most vexing fiscal problems portends more significant difficulties down the road. The gridlock is currently having a negative impact on the nation’s gross domestic product and may ultimately have adverse implications for individuals, corporations and communities alike. We do not anticipate that any significant economic legislation will be signed into law during the coming mid-term election year.

Resource intensive regulatory initiatives, technology initiatives, emerging payment system alternatives and threats to data integrity are increasing rapidly and adding to the challenging banking environment. These developments will be present for some time to come and the pace of change is not likely to slow in the foreseeable future.

4        2013 Report to Shareholders  |  CSB Bancorp, Inc.

LETTER TO SHAREHOLDERS

Some of the related impacts these factors are having on the banking industry are hard to miss. Many customers now choose electronic devices to conduct much of their transactional banking. Mobile phones and tablet computers have become common personal items and, along with desktop and laptop computers, are convenient ways to make transfers, deposit checks and monitor account balances. Trips to the neighborhood branch are less frequent these days.

Major breaches of retailer and other databases have been creating mayhem through fraudulent use of private customer information, damaging consumer confidence, keeping I.T. professionals and security experts scrambling and on edge, and costing the banking industry millions of dollars in currently unrecovered fraud losses. More effective security barriers are being created and deployed, but such mischief is likely to remain a fact of life in this age of interconnected technologies.

Fledgling payment systems are testing the waters in peer-to-peer formats, seeking to disintermediate the banking system’s role of providing the reliable avenue for clearing of payments from one party to another. The Federal Reserve is actively working on an initiative to improve the U.S. payments system by coalescing stakeholders around an effort to create a ubiquitous near real-time retail payments system within the next five to ten years. It remains to be seen whether that can be accomplished, and whether that timeframe will be faster than the adoption of non-banking system platforms. Regulatory agencies are also monitoring increasing momentum among digital currencies in some sectors of monetary value exchange, although such currencies are currently without the safety of regulatory oversight.

SENIOR MANAGEMENT
STEVEN BAILEY	PAULA MEILER	EDDIE STEINER
Executive Vice President, Chief Operations/ Chief Information Officer	Senior Vice President, Chief Financial Officer	President, Chief Executive Officer

Many of the above factors are creating, individually or in concert with other factors, uncertainties for banks. These uncertainties are piling on top of existing incursions by nonbanks into traditional banking services such as lending and deposit-like services. Fundamentally, the overall challenge for banks will be to remain relevant in some of the aspects of the monetary system that have historically been the domain of the banking industry.

We are not waiting for more stable conditions to emerge. We are developing the capabilities and talent required for thriving in an environment of continuous change and innovation. We will continue keeping a sharp eye on costs and designing efficiencies. This will allow us to maximize the use of funds and talent for needed priorities. We are aligning our efforts in further development of delivery channels and organizing our teams in a manner that promotes agile response to opportunities at hand. We are investing for the future, positioning the Company for tomorrow’s requirements and opportunities as we grow and prepare for further growth.

INFRASTRUCTURE

In last year’s report, we outlined an ambitious list of technology upgrades and projects we were undertaking to further enhance our ability to serve customers effectively and efficiently. We are happy to report that we successfully completed deployment of a company-wide mortgage loan origination system, company-wide automated phone system, core computer processing system and an excellent mobile banking application. In addition, we’ve made considerable progress with our multi-year electronic document management initiative and are presently completing projects to upgrade all ATMs, install a company-wide commercial loan origination process and enhance debit card transaction capabilities. All of these initiatives are aimed squarely at supporting our commitment to provide excellent products and services safely, effectively and efficiently to our customers.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        5

6        2013 Report to Shareholders  |  CSB Bancorp, Inc.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        7

2013 FINANCIAL REVIEW

INTRODUCTION

CSB Bancorp, Inc. (the “Company” or “CSB”) was incorporated under the laws of the State of Ohio in 1991 and is a registered bank holding company. The Company’s wholly-owned subsidiaries are The Commercial and Savings Bank (the “Bank”) and CSB Investment Services, LLC, inactive. The Bank is chartered under the laws of the State of Ohio and was organized in 1879. The Bank is a member of the Federal Reserve System, with deposits insured by the Federal Deposit Insurance Corporation, and its primary regulators are the Ohio Division of Financial Institutions and the Federal Reserve Board.

The Company, through the Bank, provides retail and commercial banking services to its customers including checking and savings accounts, time deposits, cash management, safe deposit facilities, personal loans, commercial loans, real estate mortgage loans, installment loans, IRAs, night depository facilities and trust and brokerage services. Its customers are located primarily in Holmes, Tuscarawas, Wayne, Stark and portions of surrounding counties in Ohio.

The Company’s market area has historically exhibited relatively stable economic conditions; however, economic activity declined in the latter half of 2008 and the subsequent recovery continues at a slow pace. Unemployment levels in Holmes County have generally been among the lowest in the State of Ohio, while the balance of the Company’s market area reported unemployment levels below the state average for 2013 and 2012. Residential real estate property values have also returned to close to more normalized valuations. Household debt peaked in 2007 and has fallen as consumers were leery of taking on new loans; however, spending on durable goods, such as autos has begun to return to within the normal range. The Federal Reserve Bank of Cleveland has reported that a lot of Ohio’s growth activity in industrial production is coming from oil and shale. The Company’s market is adjacent to areas of primary shale activity.

FORWARD-LOOKING STATEMENTS

Certain statements contained in Management’s Discussion and Analysis of Financial Condition and Results of Operations are not related to historical results, but are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties. Any forward-looking statements made by the Company herein and in future reports and statements are not guarantees of future performance, and actual results may differ materially from those in forward-looking statements because of various risk factors as discussed in this annual report and the Company’s Annual Report on Form 10-K. The Company does not undertake, and specifically disclaims, any obligation to publicly release the result of any revisions to any forward-looking statements to reflect the occurrence of unanticipated events or circumstances after the date of such statements.

8        2013 Report to Shareholders  |  CSB Bancorp, Inc.

2013 FINANCIAL REVIEW

SELECTED FINANCIAL DATA

The following table sets forth certain selected consolidated financial information:

(Dollars in thousands)	2013			2012			2011			2010			2009
Statements of income:
Total interest income	$	21,138		$	20,584		$	20,018		$	20,390		$	22,105
Total interest expense		2,255			2,978			3,678			4,820			6,340
Net interest income		18,883			17,606			16,340			15,570			15,765
Provision for loan losses		840			823			950			1,235			1,337
Net interest income after provision for loan losses		18,043			16,783			15,390			14,335			14,428
Noninterest income		4,318			4,204			3,508			3,275			3,243
Noninterest expense		14,848			14,450			13,609			12,546			12,746
Income before income taxes		7,513			6,537			5,289			5,064			4,925
Income tax provision		2,273			1,990			1,602			1,568			1,534
Net income	$	5,240		$	4,547		$	3,687		$	3,496		$	3,391
Per share of common stock:
Basic income per share	$	1.91		$	1.66		$	1.35		$	1.28		$	1.24
Diluted income per share		1.91			1.66			1.35			1.28			1.24
Dividends		0.72			0.72			0.72			0.72			0.72
Book value		19.15			19.17			18.07			17.24			16.76
Average basic common shares outstanding		2,736,473			2,734,889			2,734,799			2,734,799			2,734,799
Average diluted common shares outstanding		2,738,477			2,735,141			2,734,838			2,734,799			2,734,799
Year-end balances:
Loans, net	$	374,040		$	360,000		$	320,100		$	311,616		$	309,423
Securities		151,535			134,754			128,489			80,667			80,621
Total assets		596,465			586,900			551,233			457,056			450,666
Deposits		480,933			475,443			443,553			353,491			329,486
Borrowings		61,130			56,664			56,234			54,927			73,774
Shareholders’ equity		52,411			52,453			49,429			47,154			45,822
Average balances:
Loans, net	$	369,889		$	338,441		$	314,670		$	309,121		$	313,726
Securities		138,976			132,567			93,851			77,967			75,597
Total assets		581,150			564,875			471,329			445,649			427,613
Deposits		468,395			453,526			367,865			334,073			304,902
Borrowings		57,882			57,735			52,717			62,951			75,734
Shareholders’ equity		52,787			51,384			48,674			47,081			45,184
Select ratios:
Net interest margin, tax equivalent basis		3.51	%		3.36	%		3.71	%		3.73	%		3.93	%
Return on average total assets		0.90			0.80			0.78			0.78			0.79
Return on average shareholders’ equity		9.93			8.85			7.57			7.43			7.51
Average shareholders’ equity as a percent of average total assets		9.08			9.10			10.33			10.56			10.57
Net loan charge-offs as a percent of average loans		0.09			0.09			0.28			0.40			0.21
Allowance for loan losses as a percent of loans at year-end		1.34			1.26			1.26			1.28			1.29
Shareholders’ equity as a percent of total year-end assets		8.79			8.94			8.97			10.32			10.17
Dividend payout ratio		37.60			43.30			53.40			56.32			58.06

2013 Report to Shareholders  |  CSB Bancorp, Inc.        9

2013 FINANCIAL REVIEW

RESULTS OF OPERATIONS

Net Income

CSB’s 2013 net income was $5.2 million compared to $4.5 million for 2012, representing an increase of 15%. Basic and diluted earnings per share were $1.91, also up 15% from the prior year. The increased net income improved the return on average assets to 0.90% in 2013 from 0.80% in 2012 and return on average equity rose to 9.93% in 2013 from 8.85% in 2012.

Net income for 2012 was $4.5 million while basic and diluted earnings per share were $1.66, as compared to $3.7 million or $1.35 per share, for the year ended December 31, 2011. Net income increased 23% during 2012 as compared to 2011, due primarily to a $1.3 million increase in total net interest income and a $696 thousand increase in noninterest income. Partially offsetting the higher revenue were increases in noninterest expenses and federal income taxes. Return on average assets was 0.80% in 2012 compared to 0.78% in 2011, and return on average shareholders’ equity was 8.85% in 2012 as compared to 7.57% in 2011.

Net Interest Income

(Dollars in thousands)	2013			2012			2011
Net interest income	$	18,883		$	17,606		$	16,340
Taxable equivalent1		307			290			256
Net interest income, fully taxable equivalent	$	19,190		$	17,896		$	16,596
Net interest yield		3.46	%		3.31	%		3.65	%
Taxable equivalent adjustment1		0.05			0.05			0.06
Net interest yield-taxable equivalent		3.51	%		3.36	%		3.71	%

¹  Taxable equivalent adjustments have been computed assuming a 34% tax rate.

Net interest income is the largest source of the Company’s revenue and consists of the difference between interest income generated on earning assets and interest expense incurred on liabilities (deposits and short-term and long-term borrowings). Volumes, interest rates and composition of interest-earning assets and interest-bearing liabilities affect net interest income.

Net interest income increased $1.3 million or 7% in 2013 compared to 2012, partially due to a 3% increase in average earning assets, and a favorable mix trend of increased average loan balances and decreased cash balances. Additionally, the net interest margin increased to 3.51%, from 3.36% last year. The margin improvement was primarily due to lower funding costs resulting from a 3% increase in total average deposits, with average balance increases in lower cost demand, savings and maturing time deposits repricing at lower rates. Accretion of purchase accounting adjustments for loans, time deposits and borrowings acquired also improved the net interest margin by 5 basis points during 2013 and 2 basis points in 2012.

Interest income increased $554 thousand or 3% in 2013 compared to 2012 due to the $32 million increase in average loan balances, partially offset by lower yields. Rates decreased on all significant earning asset categories from reduced rates on new and repriced assets due to lending competition and the lower interest rate environment. Repricing of loans and lower rates to quality borrowers caused a decline in loan yields of 26 basis points in 2013 as compared to 2012. The increase in average loan volume helped mitigate the low interest rate environment. In 2013, average loan balances to average gross earning assets rose to 69%, compared to 64% in 2012. Securities yields continued to decline in 2013 with new and reinvestment cash flows being deployed at lower rates.

Interest income increased $566 thousand in 2012 as compared to 2011. The increase was primarily due to an increase of $85 million in average earning assets. The interest rate yield on average assets declined 61 basis points during 2012 as compared to 2011.

Interest expense decreased $723 thousand or 24% in 2013 as compared to 2012 due to decreases in the cost of all categories of interest bearing liabilities and a continued shift in the liability mix towards less expensive non-interest bearing demand deposits and savings accounts. Total average time deposits continue to decline with an emphasis on growing customers with multiple banking relationships, as opposed to single service time deposit customers.

Interest expense decreased $700 thousand, or 19%, for 2012 as compared to 2011, due to continued declines in average rates paid for interest bearing liabilities, from 1.05% in 2011 to 0.71% in 2012. Interest expense on deposits declined $541 thousand, even though average interest-bearing deposit balances increased by $65 million, or 22% in 2012 as compared to 2011. Interest expense on borrowed funds decreased by $159 thousand due to principal reductions and maturities of Federal Home Loan Bank (“FHLB”) advances, and lower interest rates remaining on outstanding borrowings.

10        2013 Report to Shareholders  |  CSB Bancorp, Inc.

2013 FINANCIAL REVIEW

The following table provides detailed analysis of changes in average balances, yield and net interest income:

	AVERAGE BALANCE SHEETS AND NET INTEREST
	MARGIN ANALYSIS
	2013								2012								2011
	Average					Average			Average					Average			Average					Average
(Dollars in thousands)	Balance1			Interest		Rate2			Balance1			Interest		Rate2			Balance1			Interest		Rate2
Interest-earning assets
Federal funds sold	$	188		$	0		0.16	%	$	148		$	0		0.12	%	$	92		$	0		0.04	%
Interest-earning deposits		32,127			90		0.28			56,422			147		0.26			34,205			82		0.24
Securities:
Taxable		122,314			2,572		2.10			118,867			2,672		2.25			81,341			2,538		3.12
Tax exempt		16,662			513		3.08			13,700			486		3.55			12,510			421		3.37
Loans3		374,821			17,963		4.79			342,868			17,279		5.05			318,781			16,977		5.33
Total interest-earning assets		546,112			21,138		3.87	%		532,005			20,584		3.87	%		446,929			20,018		4.48	%
Noninterest-earning assets
Cash and due from banks		12,911								12,399								11,094
Bank premises and equipment, net		9,222								8,630								8,040
Other assets		17,837								16,268								9,377
Allowance for loan losses		(4,932	)							(4,427	)							(4,111	)
Total assets	$	581,150							$	564,875							$	471,329
Interest-bearing liabilities
Demand deposits	$	70,648			42		0.06	%	$	63,346			50		0.08	%	$	53,896			44		0.08	%
Savings deposits		141,638			144		0.10			135,035			230		0.17			91,232			228		0.25
Time deposits		149,340			1,534		1.03			163,997			2,043		1.25			152,194			2,592		1.70
Borrowed funds		57,882			535		0.92			57,735			655		1.13			52,717			814		1.54
Total interest-bearing liabilities		419,508			2,255		0.54	%		420,113			2,978		0.71	%		350,039			3,678		1.05	%
Noninterest-bearing liabilities and shareholders’ equity
Demand deposits		106,769								91,148								70,543
Other liabilities		2,086								2,230								2,073
Shareholders’ equity		52,787								51,384								48,674
Total liabilities and equity	$	581,150							$	564,875							$	471,329
Net interest income				$	18,883							$	17,606							$	16,340
Net interest margin							3.46	%							3.31	%							3.65	%
Net interest spread							3.33	%							3.16	%							3.43	%

¹  Average balances have been computed on an average daily basis.

²  Average rates have been computed based on the amortized cost of the corresponding asset or liability.

³  Average loan balances include nonaccrual loans.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        11

2013 FINANCIAL REVIEW

The following table compares the impact of changes in average rates and changes in average volumes on net interest income:

	RATE/VOLUME ANALYSIS OF CHANGES
	IN INCOME AND EXPENSE1
	2013 v. 2012									2012 v. 2011
	Net Increase									Net Increase
(Dollars in thousands)	(Decrease)			Volume			Rate			(Decrease)			Volume		Rate
Increase (decrease) in interest income:
Interest-earning deposits	$	(57	)	$	(68	)	$	11		$	65		$	58	$	7
Securities:
Taxable		(100	)		72			(172	)		134			845		(711	)
Tax exempt		27			91			(64	)		65			42		23
Loans		684			1,531			(847	)		302			1,216		(914	)
Total interest income change		554			1,626			(1,072	)		566			2,161		(1,595	)
Increase (decrease) in interest expense:
Demand deposits		(8	)		4			(12	)		6			8		(2	)
Savings deposits		(86	)		7			(93	)		2			75		(73	)
Time deposits		(509	)		(151	)		(358	)		(549	)		147		(696	)
Other borrowed funds		(120	)		1			(121	)		(159	)		57		(216	)
Total interest expense change		(723	)		(139	)		(584	)		(700	)		287		(987	)
Net interest income	$	1,277		$	1,765		$	(488	)	$	1,266		$	1,874	$	(608	)

¹  Changes attributable to both volume and rate, which cannot be segregated, have been allocated based on the absolute value of the change due to volume and the change due to rate.

Provision For Loan Losses

The provision for loan losses is determined by management as the amount required to bring the allowance for loan losses to a level considered appropriate to absorb probable future net charge-offs inherent in the loan portfolio as of period end. The provision for loan losses was $840 thousand in 2013, $823 thousand for 2012 and $950 thousand for 2011. Lower provision expense in 2013 and 2012 reflects improving economic conditions which have led to a decrease in charge-offs and nonperforming loans. See “Financial Condition – Allowance for Loan Losses” below for additional discussion and information relative to the provision for loan losses.

Noninterest Income

	YEAR ENDED DECEMBER 31
			Change from 2012								Change from 2011
(Dollars in thousands)	2013		Amount			%			2012		Amount			%			2011
Service charges on deposit accounts	$	1,349	$	44			3.4	%	$	1,305	$	171			15.1	%	$	1,134
Trust services		826		155			23.1			671		(6	)		(0.9	)		677
Debit card interchange fees		779		(18	)		(2.3	)		797		166			26.3			631
Securities gains		159		159			100.0			—		(237	)		(100.0	)		237
Gain on sale of loans, including MSR’s		347		(244	)		(41.3	)		591		372			169.9			219
Other		858		18			2.1			840		230			37.7			610
Total noninterest income	$	4,318	$	114			2.7	%	$	4,204	$	696			19.8	%	$	3,508

12        2013 Report to Shareholders  |  CSB Bancorp, Inc.

2013 FINANCIAL REVIEW

Noninterest income increased $114 thousand, or 3% in 2013 compared to the same period in 2012. Trust and brokerage fees increased 23% as assets under management increased from overall market improvements and customer development initiatives. The average market value of trust assets under management in 2013 was $86 million as compared to $76 million in 2012. Brokerage fees increased $86 thousand in 2013 as customers returned to stock and annuity investments to increase their returns. Service charges on deposits which are primarily customer overdraft fees, increased 3% in 2013 due to growth in deposits. Net gains on sales of mortgage loans including mortgage servicing rights (“MSR’s”) decreased 41% due to a significant slowdown in mortgage refinance activity during 2013. The Bank originated and sold $12 million in mortgage loans in 2013 as compared to the sale of $20 million of loans in 2012. With historical low interest rates during the first half of 2013, available-for-sale securities with gains of $159 thousand were sold as net loan demand increased.

Noninterest income increased $696 thousand, or 20% for 2012 as compared to 2011. Service charges on deposits increased $171 thousand and debit card interchange fees increased $166 thousand in 2012 as compared to 2011, reflecting the increase in accounts following the fourth quarter 2011 Wooster branch acquisition. Trust services income decreased in 2012 as brokerage fees declined $36 thousand, or 20%, and trust revenue increased $30 thousand, or 6%. The average market value of trust assets under management during 2012 and 2011 was $76 million and $68 million, respectively. Gain on sale of loans increased in 2012 from 2011 due to volume increases in 1-4 family residential mortgages sold into the secondary market, reflecting a consumer refinancing wave due to historically low mortgage rates. There were no securities sold in 2012. Other income increased $230 thousand in 2012 over 2011 primarily from increases in cash surrender value of bank-owned life insurance of $124 thousand following an additional $5 million purchase of bank-owned life insurance during first quarter 2012, an increase of $28 thousand in all other credit card fee income and an increase of $10 thousand in noncustomer ATM usage fees in 2012 over 2011.

Noninterest Expenses

			YEAR ENDED DECEMBER 31
			Change from 2012								Change from 2011
(Dollars in thousands)	2013		Amount			%			2012		Amount			%			2011
Salaries and employee benefits	$	8,261	$	301			3.8	%	$	7,960	$	501			6.7	%	$	7,459
Occupancy expense		1,026		1			0.1			1,025		135			15.2			890
Equipment expense		719		101			16.3			618		94			17.9			524
Professional and director fees		628		(186	)		(22.9	)		814		101			14.2			713
Franchise tax expense		581		39			7.2			542		(8	)		(1.5	)		550
Marketing and public relations		395		3			0.8			392		72			22.5			320
Software expense		530		139			35.5			391		18			4.8			373
Debit card expense		268		(36	)		(11.8	)		304		51			20.2			253
Amortization of intangible assets		135		(5	)		(3.6	)		140		62			79.5			78
FDIC insurance		359		31			9.5			328		(24	)		(6.8	)		352
Branch acquisition expense		—		(8	)		(100.0	)		8		(329	)		(97.6	)		337
Other real estate expenses		9		(24	)		N.M.			33		58			N.M.			(25	)
Other		1,937		42			2.2			1,895		110			6.2			1,785
Total noninterest expenses	$	14,848	$	398			2.8	%	$	14,450	$	841			6.2	%	$	13,609

N.M., not a meaningful value

Noninterest expense increased $398 thousand, or 3% in 2013 as compared to 2012. Salaries and employee benefits increased $301 thousand due to annual adjustments to compensation of $211 thousand and benefit increases of $90 thousand due to higher payroll taxes and retirement benefits. Software expense rose $139 thousand in 2013 due to the acquisition of new core processing and loan documentation software. Equipment expense increased $101 thousand in 2013 as compared to 2012 with the acquisition of a new core processor, new telephone system and new ATMs in the branch network. Franchise tax expense increased $39 thousand in 2013 to $581 thousand but is expected to decrease to under $450 thousand in 2014 with the new Ohio Financial Institutions Tax.

Noninterest expense increased $841 thousand, or 6% in 2012 as compared to 2011. Salaries and employee benefits increased $449 thousand due to a full year increase in personnel costs of the acquired branches and annual adjustments to compensation with employee benefits expense increasing $52 thousand from increased health insurance and retirement benefit costs. Occupancy expense increased $135 thousand and equipment expense increased $94 thousand as both expenses reflected the increase in the number of branches for a full year in

2013 Report to Shareholders  |  CSB Bancorp, Inc.        13

2013 FINANCIAL REVIEW

2012 as compared to 2011. Professional and director fees increased $101 thousand reflecting employment search fees for the Chief Operating Officer and commercial lending positions as well as fees spent to review the Company’s computer operating system. FDIC deposit insurance expense decreased $24 thousand in 2012 as compared to 2011 due to a prior year change in the calculation which resulted in a decreased rate for a full year in 2012 as compared to a partial year in 2011. Other expenses increased $110 thousand primarily due to the cost of running a larger institution.

Income Taxes

The provision for income taxes amounted to $2.3 million in 2013, $2.0 million in 2012 and $1.6 million in 2011, an effective rate of 30.3% in 2013, 30.4% in 2012 and 30.3% in 2011. The decrease in the effective tax rate during 2013 as compared to 2012 is due primarily to increased tax exempt income on securities and loans.

FINANCIAL CONDITION

Total assets of the Company were $597 million at December 31, 2013, compared to $587 million at December 31, 2012, representing an increase of $10 million, or 2%. Net loans increased $14 million, or 4%, while investment securities increased $17 million, or 13% and interest-earning deposits with other banks decreased $19 million. Deposits increased $6 million, or 1%, while other borrowings from the FHLB decreased by $213 thousand, or 2%.

Securities

Total investment securities increased $17 million, or 13% to $152 million at year-end 2013. CSB’s portfolio is primarily comprised of agency mortgage-backed securities, other government agencies’ debt, and obligations of state and political subdivisions. Restricted securities consist primarily of FHLB stock. During 2013, increases occurred in government agency debt, mortgage-backed securities, and corporate bonds.

The Company has no exposure to government-sponsored enterprise preferred stocks, collateralized debt obligations or trust preferred securities. The Company’s municipal bond portfolio consists of both taxable and tax-exempt general obligation and revenue bonds. As of December 31, 2013, $13.7 million, or 83%, held an S&P or Moody’s investment grade rating and $2.8 million or 17% were non-rated. The municipal portfolio includes a broad spectrum of counties, towns, universities and school districts in Ohio. Total gross unrealized security losses within the portfolio were 1.5% of total available-for-sale securities at December 31, 2013, reflecting interest rate fluctuations, not credit downgrades.

During the third quarter 2013, the Company reclassified $39 million of U.S. Agency and U.S. Agency collateralized mortgage-backed obligations from available-for-sale to held-to-maturity. The Company considers the held-to-maturity classification to be more appropriate in a rising interest rate environment as other comprehensive income is no longer negatively impacted by the decline in value on specific bonds. The Company has the ability and the intent to hold the longer-term Agency debt securities and the mortgage-backed securities to maturity. On the date of transfer, the $1.9 million gross unrealized loss became a discount to the carrying value of the bonds while the net of tax unrealized loss remained in shareholders’ equity in other comprehensive income. The effect on interest income of the accretion of the discount on the bonds is basically offset by the amortization of the other comprehensive loss over the life of the bonds.

One of the primary functions of the securities portfolio is to provide a source of liquidity and it is structured such that maturities and cash flows satisfy the Company’s liquidity needs and asset/liability management requirements.

Loans

Total loans increased $15 million, or 4% during 2013. Volume increases were recognized in commercial and commercial real estate loans of $23 million, or 10%, and residential real estate loans of $1 million, or 1%. Construction loans saw a decline of $10 million, or 42% as projects were completed and converted to permanent financing. During 2012 the Company added two seasoned commercial lenders in its newly expanded markets and combined with low interest rates and business expansion, increases in commercial and commercial real estate loans continued in 2013.

As investment spreads tightened in the mortgage-backed securities market, the Company developed marketing campaigns for fifteen year, lower fee, fixed-rate, owner occupied loans which drove the $1 million increase in residential real estate loans. Attractive interest rates in the secondary market continued to drive consumer demand for longer-term 1-4 family fixed rate residential mortgages during 2013 and the Company sold $12 million of originated mortgages into the secondary market as compared to $20 million in 2012. This demand for low fixed-rate mortgages included some refinancing of the Company’s in-house mortgage portfolio. Demand for home equity loans flattened in 2013, with balances decreasing $107 thousand. Installment lending improved slightly with consumer loans increasing 3% on a year over year basis to $6.7 million at December 31, 2013.

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2013 FINANCIAL REVIEW

Management anticipates the Company’s local service areas will continue to exhibit modest economic growth in line with the past three years. Commercial and commercial real estate loans comprise approximately 65% and 61% of the total loan portfolio at year-end 2013 and 2012. Residential real estate loans decreased from 30% to approximately 29% between December 31, 2012 and December 31, 2013. Construction and land development loans decreased from 6% to 4% of the total portfolio between 2012 and 2013. The Company is well within the respective regulatory guidelines for investment in construction development and investment property loans that are not owner occupied.

Most of the Company’s lending activity is with customers primarily located within Holmes, Tuscarawas, Wayne and Stark Counties in Ohio. Credit concentrations, including commitments, as determined using North American Industry Classification Codes (NAICS), to the four largest industries compared to total loans at December 31, 2013 included $27 million, or 7% of total loans to lessors of non-residential buildings or dwellings; $19 million, or 5% of total loans to lessors of residential real estate; $17 million, or 4.5% of total loans to logging, sawmills and timber tract operations and $14 million, or 4% of total loans to borrowers in the hotel, motel and lodging business. These loans are generally secured by real property and equipment, and repayment is expected from operational cash flow. Credit evaluation is based on an evaluation of cash flow coverage of principal and interest payments and the adequacy of the collateral received.

Nonperforming Assets, Impaired Loans and Loans Past Due 90 Days or More

Nonperforming assets consist of nonaccrual loans, loans past due 90 days and still accruing and other real estate acquired through or in lieu of foreclosure. Other impaired loans include certain loans that are internally classified as substandard or doubtful. Loans are placed on nonaccrual status when they become past due 90 days or more, or when mortgage loans are past due as to principal and interest 120 days or more, unless they are both well secured and in the process of collection.

NONPERFORMING ASSETS

	DECEMBER 31
(Dollars in thousands)	2013			2012
Nonaccrual loans:
Commercial	$	84		$	483
Commercial real estate		1,108			1,745
Residential real estate		1,042			805
Construction & land development		—			173
Loans past due 90 days and still accruing:
Commercial		—			—
Commercial real estate		40			—
Residential real estate		46			131
Construction & land development		950			—
Total nonperforming loans		3,270			3,337
Other real estate owned		—			25
Total nonperforming assets	$	3,270		$	3,362
Nonperforming assets as a percentage of loans plus other real estate		0.86	%		0.92	%

Allowance for Loan Losses

The allowance for loan losses is maintained at a level considered adequate to cover loan losses that are currently anticipated based on past loss experience, general economic conditions, changes in mix and size of the loan portfolio, information about specific borrower situations and other factors and estimates which are subject to change over time. Management periodically reviews selected large loans, delinquent and other problem loans and selected other loans. Collectability of these loans is evaluated by considering the current financial position and performance of the borrower, estimated market value of the collateral, the Company’s collateral position in relationship to other creditors, guarantees and other potential sources of repayment. Management forms judgments, which are in part subjective, as to the probability of loss and the amount of loss on these loans as well as other loans taken together. The Company’s Allowance for Loan Losses Policy includes, among other items, provisions for classified loans and a provision for the remainder of the portfolio based on historical data, including past charge-offs.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        15

2013 FINANCIAL REVIEW

ALLOWANCE FOR LOAN LOSSES

	FOR THE YEAR ENDED
(Dollars in thousands)	2013			2012
Beginning balance of allowance for loan losses	$	4,580		$	4,082
Provision for loan losses		840			823
Charge-offs:
Commercial		149			29
Commercial real estate		108			283
Residential real estate & home equity		82			106
Construction & land development		—			—
Consumer		48			39
Deposit accounts		35			50
Credit cards		6			—
Total charge-offs		428			507
Recoveries:
Commercial		15			16
Commercial real estate		—			—
Residential real estate & home equity		18			102
Construction & land development		—			—
Consumer		50			44
Deposit accounts		10			20
Credit cards		—			—
Total recoveries		93			182
Net charge-offs		335			325
Ending balance of allowance for loan losses	$	5,085		$	4,580
Net charge-offs as a percentage of average total loans		0.09	%		0.09	%
Allowance for loan losses as a percentage of total loans		1.34			1.26
Allowance for loan losses to total nonperforming loans		1.56	x		1.37	x
Components of the allowance for loan losses:
General reserves	$	4,301		$	3,801
Specific reserve allocations		784			779
Total allowance for loan losses	$	5,085		$	4,580

The allowance for loan losses totaled $5.1 million, or 1.34%, of total loans at year-end 2013 as compared to $4.6 million, or 1.26% of total loans at year-end 2012. Net charge-offs for 2013 totaled $335 thousand as compared to net charge-offs of $325 thousand in 2012.

The Company maintains an internal watch list on which it places loans where management’s analysis of the borrower’s operating results and financial condition indicates that the borrower’s cash flows are inadequate to meet its debt service requirements and loans where there exists an increased risk that such a shortfall may occur. Nonperforming loans, which consist of loans past due 90 days or more and nonaccrual loans aggregated $3.3 million, or 0.9% of loans at year-end 2013 as compared to $3.3 million, or 0.9% of loans at year-end 2012. Impaired loans were $10.7 million at year-end 2013 as compared to $10.2 million at year-end 2012. Impaired loans as a percentage of total loans remained stable from 2012 to 2013 and reflect economic stabilization in the Company’s market area with decreasing unemployment levels. Management has assigned loss allocations to absorb the estimated losses on these impaired loans, and these allocations are included in the total allowance for loan losses balance.

16        2013 Report to Shareholders  |  CSB Bancorp, Inc.

2013 FINANCIAL REVIEW

Other Assets

Net premises and equipment increased $215 thousand to $8.7 million at year-end 2013 primarily as the purchase of equipment and furniture in 2013 exceeded depreciation expense. There was no other real estate owned at December 31, 2013 compared to $25 thousand owned at December 31, 2012. Bank-owned life insurance of $1 million was purchased on the life of a senior management member during 2013. At December 31, 2013 the Company recognized a net deferred tax asset of $1.2 million as compared to a net deferred tax liability of $476 thousand at December 31, 2012. The change in the Company’s net deferred tax position resulted primarily from the increase in the net deferred asset related to the unrealized loss on securities available-for-sale.

Deposits

The Company’s deposits are obtained primarily from individuals and businesses located in its market area. For deposits, the Company must compete with products offered by other financial institutions as well as alternative investment options. Demand and savings deposits increased for the year ended 2013, due to focused retail and business banking strategies to obtain more account relationships as well as customers reflecting their preference for shorter maturities.

	December 31				Change from 2012
(Dollars in thousands)	2013		2012		Amount			%
Noninterest-bearing demand	$	120,325	$	104,147	$	16,178			15.5	%
Interest-bearing demand		76,327		74,429		1,898			2.6
Traditional savings		76,630		67,957		8,673			12.8
Money market savings		73,307		70,837		2,470			3.5
Time deposits in excess of $100,000		42,562		54,163		(11,601	)		(21.4	)
Other time deposits		91,782		103,910		(12,128)			(11.7)
Total deposits	$	480,933	$	475,443	$	5,490			1.2	%

Other Funding Sources

The Company obtains additional funds through securities sold under repurchase agreements, overnight borrowings from the FHLB or other financial institutions and advances from the FHLB. Short-term borrowings, which consist of securities sold under repurchase agreements, increased $5 million; while other borrowings, which consist of FHLB advances, decreased $213 thousand due to required principal repayments during 2013.

CAPITAL RESOURCES

Total shareholders’ equity decreased to $52.4 million at December 31, 2013 as compared to $52.5 million at December 31, 2012. This decrease was primarily due to $3.3 million other comprehensive loss and the payment of $2.0 million cash dividends which were offset by $5.2 million of net income in 2013. The Board of Directors approved a Stock Repurchase Program on July 7, 2005 that would allow the repurchase of up to 10% of the Company’s then-outstanding common shares. Repurchased shares are to be held as treasury stock and would be available for general corporate purposes. At December 31, 2013, approximately forty-one thousand shares could still be repurchased under the current authorized program. No shares were repurchased in 2013 or 2012.

`Banking regulations have established minimum capital ratios for banks and bank holding companies. Therefore, the Company and the Bank must meet a risk-based capital requirement, which defines two tiers of capital and compares each to the Company’s “risk-weighted assets.” The Company’s assets and certain off-balance-sheet items, such as loan commitments, are each assigned a risk factor such that assets with potentially higher credit risk will require more capital support than assets with lower risk. These regulations require the Company to have a minimum total risk-based capital ratio of 8%, at least half of which must be Tier 1 capital. The Company’s Tier 1 capital is its shareholders’ equity before any unrealized gain or loss on securities available-for-sale, while total risk-based capital includes Tier 1 capital and a limited amount of the allowance for loan losses. In addition, a bank or bank holding company’s leverage ratio (which for the Company equals its shareholders’ equity before any unrealized gain or loss on securities available-for-sale, divided by average assets) must be maintained at a minimum of 4%. The Company and Bank’s actual and required capital amounts are disclosed in Note 12 to the consolidated financial statements.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        17

2013 FINANCIAL REVIEW

Dividends paid by the Bank to CSB are the primary source of funds available to the Company for payment of dividends to shareholders and for other working capital needs. The payment of dividends by the Bank to the Company is subject to restrictions by regulatory authorities, which generally limit dividends to current year net income and the prior two years net retained earnings, as defined by regulation. In addition, dividend payments generally cannot reduce regulatory capital levels below the minimum regulatory guidelines discussed above.

In July 2013, the Federal Reserve adopted final rules effective generally on January 1, 2015 to implement the Basel III and regulatory capital changes required by the Dodd-Frank Act. These changes will apply to the Company and the Bank. Among other things, the rules include new minimum risk-based and leverage capital requirements for all banking organizations and removal of references to credit ratings. A new capital conservation buffer of 2.5% of risk-weighted assets is being phased-in over a transition period ending December 31, 2018. Failure to maintain the required ratios will restrict or prohibit dividends, share repurchases and discretionary bonuses. Management is evaluating the new rules and their effects on the Company and the Bank, but Management believes the Company and the Bank will remain “well-capitalized” under the new rules.

LIQUIDITY

	December 31						Change
(Dollars in millions)	2013			2012			from 2012
Cash and cash equivalents	$	43		$	67		$	(24	)
Unused lines of credit		42			41			1
Unpledged securities at fair market value		42			59		$	(17	)
	$	127		$	167			(40	)
Net deposits and short-term liabilities	$	473		$	444		$	29
Liquidity ratio		26.9	%		37.6	%
Minimum board approved liquidity ratio		20.0	%		20.0	%

Liquidity refers to the Company’s ability to generate sufficient cash to fund current loan demand, meet deposit withdrawals, pay operating expenses and meet other obligations. The Company’s liquidity ratio declined in 2013 as a result of continuing to deploy cash received in the Wooster branch acquisition in fourth quarter 2011 into loans and investments. Liquidity is monitored by CSB’s Asset Liability Committee. The Company was within all Board-approved limits at December 31, 2013 and 2012. Additional sources of liquidity include net income, loan repayments, and adjustments of interest rates to attract deposit accounts.

As summarized in the consolidated statements of cash flows, the most significant investing activities for the Company in 2013 included net loan originations of $15 million and the maturities and repayments of securities totaling $37 million, offset by $64 million in securities purchases and the $1 million purchase of bank-owned life insurance. The Company’s financing activities included a $6 million increase in deposits, a $5 million increase in securities sold under agreements to repurchase and a $213 thousand net repayment of FHLB advances.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The most significant market risk to which the Company is exposed is interest rate risk. The business of the Company and the composition of its balance sheet consist of investments in interest-earning assets (primarily loans and securities), which are funded by interest-bearing liabilities (deposits and borrowings). These financial instruments have varying levels of sensitivity to changes in the market rates of interest, resulting in market risk. None of the Company’s financial instruments are held for trading purposes.

The Board of Directors establishes policies and operating limits with respect to interest rate risk. The Company manages interest rate risk regularly through its Asset Liability Committee. The Committee meets on a monthly basis and reviews various asset and liability management information including, but not limited to, the Company’s liquidity position, projected sources and uses of funds, interest rate risk position and economic conditions.

Interest rate risk is monitored primarily through the use of an earnings simulation model. The model is highly dependent on various assumptions, which change regularly as the balance sheet and market interest rates change. The earnings simulation model projects changes in net interest income resulting from the effect of changes in interest rates. The analysis is performed quarterly over a twenty-four month horizon. The analysis includes two balance sheet models, one based on a static balance sheet and one on a dynamic balance sheet with projected growth in assets and liabilities. This analysis is performed by estimating the expected cash flows of the Company’s financial instruments using interest rates in effect at year-end 2013 and 2012. Interest rate risk policy limits are tested by measuring the anticipated change in net interest income

18        2013 Report to Shareholders  |  CSB Bancorp, Inc.

2013 FINANCIAL REVIEW

over a two year period. The tests assume a quarterly ramped 100, 200, 300 and 400 basis point increase and a 100 basis point decrease in 2013 in market interest rates as compared to a stable rate environment or base model. The following table reflects the change to interest income for the first twelve month period of the twenty-four month horizon.

Net Interest Income at Risk

December 31, 2013
		Net
Change In		Interest		Dollar						Board
Interest Rates		Income		Change			Percentage			Policy
(Basis Points)		(Dollars in thousands)					Change			Limits
	+ 400	$	20,812	$	962			4.8	%		±25	%
	+ 300		20,507		657			3.3			±15
	+ 200		20,217		367			1.8			±10
	+ 100		19,966		116			0.6			±5
	0		19,850		—			—
	– 100		19,644		(206	)		(1.0	)		±5
December 31, 2012
	+ 400	$	19,420	$	1,762			10.0	%		±25	%
	+ 300		18,982		1,324			7.5			±15
	+ 200		18,507		849			4.8			±10
	+ 100		18,053		395			2.2			±5
	0		17,658		—			—
	– 100		17,483		(175	)		(1.0	)		±5

Management reviews Net Interest Income at Risk with the Board on a periodic basis. The Company was within all Board-approved limits at December 31, 2013 and 2012.

Economic Value of Equity at Risk

December 31, 2013
Change In Interest Rates (Basis Points)		Percentage Change			Board Policy Limits
	+ 400		9.8	%		±35	%
	+ 300		8.8			±30
	+ 200		7.4			±20
	+ 100		4.7			±15
	– 100		(7.6	)		±15
December 31, 2012
	+ 400		19.0	%		±35	%
	+ 300		17.4			±30
	+ 200		14.8			±20
	+ 100		9.5			±15

2013 Report to Shareholders  |  CSB Bancorp, Inc.        19

2013 FINANCIAL REVIEW

The economic value of equity is calculated by subjecting the period-end balance sheet to changes in interest rates and measuring the impact of the changes on the values of the assets and liabilities. Hypothetical changes in interest rates are then applied to the financial instruments, and the cash flows and fair values are again estimated using these hypothetical rates. For the net interest income estimates, the hypothetical rates are applied to the financial instruments based on the assumed cash flows.

Management periodically measures and reviews the Economic Value of Equity at Risk with the Board. At December 31, 2013, the market value of equity as a percent of base in a 400 basis point rising rate environment indicates an increase of 9.8%, as compared to an increase of 19.0% as of December 31, 2012. The Company added the review of a -100 basis change in interest rates during 2013 as rates had risen at December 31, 2013 in comparison with 2012. The Company was within all Board-approved limits at December 31, 2013 and 2012.

SIGNIFICANT ASSUMPTIONS AND OTHER CONSIDERATIONS

The above analysis is based on numerous assumptions, including relative levels of market interest rates, loan prepayments and reactions of depositors to changes in interest rates, and should not be relied upon as being indicative of actual results. Further, the analysis does not necessarily contemplate all actions the Company may undertake in response to changes in interest rates.

U.S. Treasury securities, obligations of U.S. Government corporations and agencies and obligations of states and political subdivisions will generally repay at their stated maturity, or if callable prior to their final maturity date. Mortgage-backed security payments increase when interest rates are low and decrease when interest rates rise. Many of the Company’s loans permit the borrower to prepay the principal balance prior to maturity without penalty. The likelihood of prepayment depends on a number of factors, including current interest rate and interest rate index (if any) on the loan, the financial ability of the borrower to refinance, the economic benefit to be obtained from refinancing, availability of refinancing at attractive terms, as well as economic and other factors in specific geographic areas which affect the sales and price levels of residential and commercial property. In a changing interest rate environment, prepayments may increase or decrease on fixed and adjustable rate loans depending on the current relative levels and expectations of future short-term and long-term interest rates. Prepayments on adjustable rate loans generally increase when long-term interest rates fall or are at historically low levels relative to short-term interest rates, thus making fixed rate loans more desirable. While savings and checking deposits generally may be withdrawn upon the customer’s request without prior notice, a continuing relationship with customers resulting in future deposits and withdrawals is generally predictable, resulting in a dependable and uninterrupted source of funds. Time deposits generally have early withdrawal penalties, which discourage customer withdrawal prior to maturity. Short-term borrowings have fixed maturities. Certain advances from the FHLB carry prepayment penalties and are expected to be repaid in accordance with their contractual terms.

FAIR VALUE MEASUREMENTS

The Company discloses the estimated fair value of its financial instruments at December 31, 2013 and 2012 in Note 15 to the consolidated financial statements.

OFF-BALANCE SHEET ARRANGEMENTS, CONTRACTUAL OBLIGATIONS, AND CONTINGENT LIABILITIES AND COMMITMENTS

The following table summarizes the Company’s loan commitments, including letters of credit, as of December 31, 2013:

	Amount of Commitment to Expire Per Period
(Dollars in thousands) Type of Commitment	Total Amount		Less than 1 year		1 to 3 Years		3 to 5 Years		Over 5 Years
Commercial lines-of-credit	$	68,029	$	62,438	$	209	$	2,081	$	3,301
Real estate lines-of-credit		35,880		2,936		5,510		4,947		22,487
Consumer lines-of-credit		842		842		—		—		—
Credit cards lines-of-credit		3,493		3,493		—		—		—
Overdraft privilege		6,523		6,523		—		—		—
Commercial real estate loan commitments		4,804		4,804		—		—		—
Letters of credit		679		679		—		—		—
Total commitments	$	120,250	$	81,715	$	5,719	$	7,028	$	25,788

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2013 FINANCIAL REVIEW

As indicated in Note 10 to the consolidated financial statements, the Company had $120 million in total loan commitments at the end of 2013, with $77 million of that amount expiring within one year. All lines-of-credit represent either fee-paid or legally binding loan commitments for the loan categories noted. Letters of credit are also included in the amounts noted in the table since the Company requires that each letter of credit be supported by a loan agreement. The commercial and consumer lines represent both unsecured and secured obligations. The real estate lines are secured by mortgages on residential and nonresidential property. It is anticipated that a significant portion of these lines will expire without being drawn upon.

The following table summarizes the Company’s other contractual obligations, exclusive of interest, as of December 31, 2013:

			Payment Due by period
(Dollars in thousands) Contractual Obligations	Total Amount		Less than 1 year		1 to 3 Years		3 to 5 Years		Over 5 Years
Total time deposits	$	134,344	$	75,051	$	44,073	$	15,173	$	47
Short-term borrowings		48,671		48,671		—		—		—
Other borrowings		12,459		2,190		266		10,003		—
Operating leases		797		299		466		32		—
Total obligations	$	196,271	$	126,211	$	44,805	$	25,208	$	47

The other borrowings noted in the preceding table represent borrowings from the FHLB of Cincinnati. The notes require payment of interest on a monthly basis with principal due in monthly installments or at maturity, depending upon the issue. The obligations bear stated fixed interest rates and stipulate a prepayment penalty if the note’s interest rate exceeds the current market rate for similar borrowings at the time of repayment. As the notes mature, the Company evaluates the liquidity and interest rate circumstances, at that time, to determine whether to pay off or renew the note. The evaluation process typically includes the strength of current and projected customer loan demand, the Company’s federal funds sold or purchased position, projected cash flows from maturing investment securities, the current and projected market interest rate environment, local and national economic conditions and customer demand for the Company’s deposit product offerings.

CRITICAL ACCOUNTING POLICIES

The Company’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles and follow general practices within the commercial banking industry. Application of these principles requires management to make estimates, assumptions and judgments that affect the amounts reported in the financial statements. These estimates, assumptions, and judgments are based upon the information available as of the date of the financial statements.

The most significant accounting policies followed by the Company are presented in the Summary of Significant Accounting Policies. These policies, along with the other disclosures presented in the Notes to Consolidated Financial Statements and the 2013 Financial Review, provide information about how significant assets and liabilities are valued in the financial statements and how those values are determined. Management has identified the allowance for loan losses and the fair value of financial instruments as the accounting areas that require the most subjective and complex estimates, assumptions and judgments and, as such, could be the most subject to revision as new information becomes available.

Securities are evaluated periodically to determine whether a decline in their value is other-than-temporary. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other-than-temporary. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospect for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other-than-temporary, the value of the security is reduced and a corresponding charge to earnings is recognized.

As previously noted in the section entitled Allowance for Loan Losses, management performs analysis to assess the adequacy of its allowance for loan losses. This analysis encompasses a variety of factors including the potential loss exposure for individually reviewed loans, the historical loss experience, the volume of nonperforming loans (i.e., loans in nonaccrual status or past due 90 days or more), the volume of loans past due, any significant changes in lending or loan review staff, an evaluation of current and future local and national economic conditions, any significant changes in the volume or mix of loans within each category, a review of the significant concentrations of credit and any legal, competitive or regulatory concerns.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        21

2013 FINANCIAL REVIEW

CSB accounts for business combinations using the acquisition method of accounting. Goodwill and intangible assets with indefinite useful lives are not amortized. Intangible assets with finite useful lives, consisting of core deposit intangibles, are amortized using accelerated methods over their estimated weighted-average useful lives, approximating ten years. Additional information is presented in Note 5, Core Deposit Intangible Asset.

IMPACT OF INFLATION AND CHANGING PRICES

The consolidated financial statements and related data presented herein have been prepared in accordance with U.S. generally accepted accounting principles, requiring measurement of financial position and results of operations primarily in terms of historical dollars without considering changes in the relative purchasing power of money over time due to inflation. Unlike most industrial companies, most assets and liabilities of the Company are monetary in nature. Therefore, interest rates have a more significant impact on the Company’s performance than the effects of general levels of inflation. Interest rates do not necessarily move in the same direction or in the same magnitude as prices of goods and services. The liquidity, maturity structure and quality of the Company’s assets and liabilities are critical to maintenance of acceptable performance levels.

COMMON STOCK AND SHAREHOLDER INFORMATION

Common shares of the Company are not traded on an established market. Shares are traded on the over-the-counter-bulletin-board through broker/dealers under the symbol “CSBB” and through private transactions. The table below represents the range of high and low prices paid for transactions known to the Company. Management does not have knowledge of prices paid on all transactions. Because of the lack of an established market, these prices may not reflect the prices at which stock would trade in an active market. These quotations reflect interdealer prices, without mark-up, markdown or commission and may not represent actual transactions. The table specifies cash dividends declared by the Company to its shareholders during 2013 and 2012. No assurances can be given that future dividends will be declared, or if declared, what the amount of any such dividends will be. Additional information concerning restrictions over the payment of dividends is included in Note 12 of the consolidated financial statements.

					Dividends
					Declared		Dividends
Quarter Ended	High		Low		Per Share		Declared
March 31, 2013	$	19.20	$	17.00	$	0.18	$	492,594
June 30, 2013		20.85		19.00		0.18		492,594
September 30, 2013		20.80		18.60		0.18		492,594
December 31, 2013		19.60		18.62		0.18		492,594
March 31, 2012	$	20.00	$	16.00	$	0.18	$	492,264
June 30, 2012		20.50		17.50		0.18		492,264
September 30, 2012		20.49		17.75		0.18		492,264
December 31, 2012		18.65		16.84		0.18		492,374

As of December 31, 2013, the Company had 1,300 known shareholders of record and 2,736,634 outstanding shares of common stock.

22        2013 Report to Shareholders  |  CSB Bancorp, Inc.

REPORT ON MANAGEMENT’S ASSESSMENT OF

INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of CSB Bancorp, Inc. is responsible for establishing and maintaining adequate internal control over financial reporting. Management has designed our internal control over financial reporting to provide reasonable assurance that our published financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles.

Management is required by paragraph (c) of Rule 13a-15 of the Securities Exchange Act of 1934, as amended, to assess the effectiveness of our internal control over financial reporting as of each year-end. In making this assessment, management used the Internal Control-Integrated Framework issued in July 1994 by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Management conducted the required assessment of the effectiveness of our internal control over financial reporting as of December 31, 2013. Based upon this assessment, management believes that our internal control over financial reporting is effective as of December 31, 2013.

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to the rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.

Eddie L. Steiner	Paula J. Meiler
President,	Senior Vice President,
Chief Executive Officer	Chief Financial Officer

2013 Report to Shareholders  |  CSB Bancorp, Inc.        23

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM REPORT

Board of Directors and Shareholders

CSB Bancorp, Inc.

We have audited the accompanying consolidated balance sheets of CSB Bancorp, Inc. and subsidiaries as of December 31, 2013 and 2012, and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2013. These consolidated financial statements are the responsibility of CSB Bancorp, Inc.’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. CSB Bancorp, Inc. is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of CSB Bancorp, Inc.’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of CSB Bancorp, Inc. and subsidiaries as of December 31, 2013 and 2012, and the consolidated results of their operations and their cash flows for each of the years then ended, in conformity with U.S. generally accepted accounting principles.

Wexford, Pennsylvania

March 6, 2014

24        2013 Report to Shareholders  |  CSB Bancorp, Inc.

CONSOLIDATED BALANCE SHEETS

December 31, 2013 and 2012

(Dollars in thousands)	2013			2012
ASSETS
Cash and cash equivalents
Cash and due from banks	$	15,777		$	21,485
Interest-earning deposits in other banks		26,822			45,393
Total cash and cash equivalents		42,599			66,878
Securities
Available-for-sale, at fair value		101,722			129,291
Held-to-maturity (fair value of $42,643)		44,350			—
Restricted stock, at cost		5,463			5,463
Total securities		151,535			134,754
Loans		379,125			364,580
Less allowance for loan losses		5,085			4,580
Net loans		374,040			360,000
Premises and equipment, net		8,690			8,475
Core deposit intangible		759			894
Goodwill		4,728			4,728
Bank-owned life insurance		9,551			8,298
Accrued interest receivable and other assets		4,563			2,873
TOTAL ASSETS	$	596,465		$	586,900
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits
Noninterest-bearing	$	120,325		$	104,147
Interest-bearing		360,608			371,296
Total deposits		480,933			475,443
Short-term borrowings		48,671			43,992
Other borrowings		12,459			12,672
Accrued interest payable and other liabilities		1,991			2,340
Total liabilities		544,054			534,447
SHAREHOLDERS’ EQUITY
Common stock, $ 6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares; outstanding 2,736,634 shares in 2013 and 2,736,060 in 2012		18,629			18,629
Additional paid-in capital		9,964			9,974
Retained earnings		30,232			26,962
Treasury stock at cost - 243,968 shares in 2013 and 244,542 in 2012		(4,958	)		(4,976	)
Accumulated other comprehensive (loss) income		(1,456	)		1,864
Total shareholders’ equity		52,411			52,453
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	596,465		$	586,900

These consolidated financial statements should be read in connection with the accompanying summary of significant accounting policies and notes to the consolidated financial statements.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        25

CONSOLIDATED STATEMENTS OF INCOME

Years Ended December 31, 2013, 2012 and 2011

(Dollars in thousands, except per share data)	2013		2012		2011
INTEREST AND DIVIDEND INCOME
Loans, including fees	$	17,963	$	17,279	$	16,977
Taxable securities		2,572		2,672		2,538
Nontaxable securities		513		486		421
Other		90		147		82
Total interest and dividend income		21,138		20,584		20,018
INTEREST EXPENSE
Deposits		1,720		2,323		2,864
Short-term borrowings		67		91		139
Other borrowings		468		564		675
Total interest expense		2,255		2,978		3,678
NET INTEREST INCOME		18,883		17,606		16,340
PROVISION FOR LOAN LOSSES		840		823		950
Net interest income, after provision for loan losses		18,043		16,783		15,390
NONINTEREST INCOME
Service charges on deposit accounts		1,349		1,305		1,134
Trust services		826		671		677
Debit card interchange fees		779		797		631
Securities gain, net		159		—		237
Gain on sale of loans, net		347		591		219
Other income		858		840		610
Total noninterest income		4,318		4,204		3,508
NONINTEREST EXPENSES
Salaries and employee benefits		8,261		7,960		7,459
Occupancy expense		1,026		1,025		890
Equipment expense		719		618		524
Professional and director fees		628		814		713
Franchise tax expense		581		542		550
Marketing and public relations		395		392		320
Software expense		530		391		373
Debit card expense		268		304		253
Amortization of intangible assets		135		140		78
FDIC insurance expense		359		328		352
Branch acquisition expense		—		8		337
Net cost of operation of other real estate		9		33		(25	)
Other expenses		1,937		1,895		1,785
Total noninterest expenses		14,848		14,450		13,609
Income before income taxes		7,513		6,537		5,289
FEDERAL INCOME TAX PROVISION		2,273		1,990		1,602
NET INCOME	$	5,240	$	4,547	$	3,687
NET INCOME PER SHARE
Basic	$	1.91	$	1.66	$	1.35
Diluted	$	1.91	$	1.66	$	1.35

These consolidated financial statements should be read in connection with the accompanying summary of significant accounting policies and notes to the consolidated financial statements.

26        2013 Report to Shareholders  |  CSB Bancorp, Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years Ended December 31, 2013, 2012 and 2011

(Dollars in thousands)	2013			2012			2011
Net income	$	5,240		$	4,547		$	3,687
Other comprehensive income (loss)
Unrealized gains (losses) arising during the period		(3,195	)		657			1,081
Unrealized losses on held-to-maturity transfer		(1,931	)		—			—
Amounts reclassified from accumulated other comprehensive income, held-to-maturity		255			—			—
Income tax effect		1,656			(223	)		(368	)
Reclassification adjustment for gains on available for sale securities included in net income		(159	)		—			(237	)
Income tax effect		54			—			81
Other comprehensive income (loss)		(3,320	)		434			557
Total comprehensive income	$	1,920		$	4,981		$	4,244

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Years Ended December 31, 2013, 2012 and 2011

(Dollars in thousands)	Common Stock		Additional Paid-In Capital			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total
BALANCE AT DECEMBER 31, 2010	$	18,629	$	9,994		$	22,673		$	(5,015	)	$	873		$	47,154
Net income		—		—			3,687			—			—			3,687
Other comprehensive income		—		—			—			—			557			557
Cash dividends declared, $ 0.72 per share		—		—			(1,969	)		—			—			(1,969	)
BALANCE AT DECEMBER 31, 2011	$	18,629	$	9,994		$	24,391		$	(5,015	)	$	1,430		$	49,429
Net income		—		—			4,547			—			—			4,547
Other comprehensive income		—		—			—			—			434			434
Stock options exercised, 1,261 shares		—		(20	)		(7	)		39			—			12
Cash dividends declared, $ 0.72 per share		—		—			(1,969	)		—			—			(1,969	)
BALANCE AT DECEMBER 31, 2012	$	18,629	$	9,974		$	26,962		$	(4,976	)	$	1,864		$	52,453
Net income		—		—			5,240			—			—			5,240
Other comprehensive loss		—		—			—			—			(3,320	)		(3,320	)
Stock options exercised, 574 shares		—		(10	)		—			18			—			8
Cash dividends declared, $ 0.72 per share		—		—			(1,970	)		—			—			(1,970	)
BALANCE AT DECEMBER 31, 2013	$	18,629	$	9,964		$	30,232		$	(4,958	)	$	(1,456	)	$	52,411

These consolidated financial statements should be read in connection with the accompanying summary of significant accounting policies and notes to the consolidated financial statements.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        27

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31, 2013, 2012 and 2011

(Dollars in thousands)	2013			2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	5,240		$	4,547		$	3,687
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises, equipment and software		779			644			662
Deferred income taxes		77			(50	)		345
Provision for loan losses		840			823			950
Gain on sale of loans, net		(347	)		(591	)		(219	)
Securities gain, net		(159	)		—			(237	)
Security amortization, net of accretion		456			553			226
Secondary market loan sale proceeds		12,393			20,873			7,201
Originations of secondary market loans held-for-sale		(12,106	)		(20,384	)		(7,019	)
Bank-owned life insurance		(253	)		(230	)		(107	)
Effects of changes in operating assets and liabilities:
Net deferred loan (fees) costs		(214	)		63			35
Accrued interest receivable		(57	)		32			(134	)
Accrued interest payable		(39	)		(47	)		(31	)
Other assets and liabilities		339			831			415
Net cash provided by operating activities	$	6,949		$	7,064		$	5,774
CASH FLOWS FROM INVESTING ACTIVITIES
Securities available-for-sale:
Proceeds from maturities and repayments, available-for-sale	$	36,200		$	76,220		$	45,332
Proceeds from repayments, held-to-maturity		1,211			—			—
Purchases, available-for-sale		(55,693	)		(82,382	)		(95,542	)
Purchases, held-to-maturity		(8,135	)		—			—
Proceeds from sale of securities, available-for-sale		4,309			—			3,244
Loan originations, net of repayments		(14,666	)		(40,842	)		(1,065	)
Net cash from acquisition		—			—			60,872
Proceeds from sale of other real estate		18			26			883
Property, equipment and software acquisitions		(1,526	)		(953	)		(586	)
Purchase of bank-owned life insurance		(1,000	)		(5,000	)		—
Net cash provided by (used in) investing activities	$	(39,282	)	$	(52,931	)	$	13,138

These consolidated financial statements should be read in connection with the accompanying summary of significant accounting policies and notes to the consolidated financial statements.

28        2013 Report to Shareholders  |  CSB Bancorp, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31, 2013, 2012 and 2011

(Dollars in thousands)	2013			2012			2011
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits	$	5,550		$	32,021		$	15,648
Net change in short-term borrowings		4,679			6,919			5,055
Repayment of other borrowings		(213	)		(6,489	)		(3,748	)
Cash dividends paid		(1,970	)		(1,969	)		(1,969	)
Proceeds from stock options exercised		8			5			—
Net cash provided by financing activities	$	8,054		$	30,487		$	14,986
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(24,279	)		(15,380	)		33,898
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		66,878			82,258			48,360
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	42,599		$	66,878		$	82,258
SUPPLEMENTAL DISCLOSURES
Cash paid during the year for:
Interest	$	2,356		$	3,155		$	3,769
Income taxes		2,335			1,690			1,525
Acquisition of noncash assets and liabilities:
Assets acquired		—			—			13,631
Liabilities assumed		—			—			74,503
Noncash investing activities:
Transfer of loans to other real estate owned		—			56			814
Transfer of securities from available-for-sale to held-to-maturity		38,930			—			—

These consolidated financial statements should be read in connection with the accompanying summary of significant accounting policies and notes to the consolidated financial statements.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        29

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CSB Bancorp, Inc. (the “Company” or “CSB”) was incorporated in 1991 in the State of Ohio, and is a registered bank holding company. The Company’s wholly-owned subsidiaries are The Commercial and Savings Bank of Millersburg, Ohio (the “Bank”) and CSB Investment Services, LLC., inactive. The Company, through its subsidiaries, operates in one industry segment; the commercial banking industry.

The Bank, an Ohio-chartered bank organized in 1879, provides financial services through its sixteen Banking Centers located in Holmes, Tuscarawas, Wayne and Stark Counties in Ohio and nearby communities. These communities are the source of substantially all deposit, loan and trust activities. The majority of the Bank’s income is derived from commercial and retail lending activities and investments in securities. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential real estate, commercial real estate, commercial and installment loans. Substantially, all loans are secured by specific items of collateral including business assets, consumer assets and real estate. Commercial loans are expected to be repaid from cash flow from business operations. Real estate loans are secured by both residential and commercial real estate.

Significant accounting policies followed by the Company are presented below:

USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS

In preparing Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Balance Sheets and reported amounts of revenues and expenses during each reporting period. Actual results could differ from those estimates. The most significant estimates susceptible to change in the near term relate to management’s determination of the allowance for loan losses and the fair value of financial instruments.

PRINCIPLES OF CONSOLIDATION

The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation.

The Bank has established a trust department and the assets held by the Bank in fiduciary or agency capacities for its customers are not included in the Consolidated Balance Sheets as such items are not assets of the Bank.

CASH AND CASH EQUIVALENTS

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand and amounts due from banks which mature overnight or within ninety days.

CASH RESERVE REQUIREMENTS

The Bank is required by the Federal Reserve to maintain reserves consisting of cash on hand and noninterest-earning balances on deposit with the Federal Reserve Bank. There was no required reserve balance at December 31, 2013 and 2012.

SECURITIES

Securities designated as available-for-sale are carried at fair value with unrealized gains and losses on such securities, net of applicable income taxes, recognized as other comprehensive income (loss). During 2013, approximately $39 million par value U.S. Government agencies and mortgage-backed securities of government agencies were transferred from available-for-sale to held-to-maturity. At year end, 28% of the total investment portfolio was classified as held-to-maturity. The volatility in interest rates that has occurred recently does not have as much impact on other comprehensive income as if the entire portfolio was included in the available-for-sale category. The held-to-maturity securities are carried at their fair value on the date of transfer or at purchase value if security purchases are designated as held-to-maturity.

The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity based on the interest method. Such amortization and accretion is included in interest and dividends on securities.

Gains and losses on sales of securities are accounted for on a trade date basis, using the specific identification method, and are included in noninterest income. Securities are periodically reviewed for other-than-temporary impairment based upon a number of factors, including, but not limited to, the length of time and extent to which the market value has been less than cost, the financial condition of the underlying issuer, the receipt of principal and interest according to the contractual terms, the ability of the issuer to meet contractual obligations, the likelihood of the security’s ability to recover any decline in its market value and management’s intent and ability to hold the security for a period of time sufficient to allow for a recovery in market value. Among the factors that are considered in determining management’s intent and ability to hold the security is a review of the Company’s capital adequacy, interest rate risk position and liquidity.

30        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The assessment of a security’s ability to recover any decline in market value, the ability of the issuer to meet contractual obligations and management’s intent and ability to hold the security requires considerable judgment. A decline in value that is considered to be other-than-temporary is recorded as a loss within non-interest income in the Consolidated Statements of Income.

Investments in Federal Home Loan Bank of Cincinnati (“FHLB”) and Federal Reserve Bank stock are classified as restricted stock, carried at cost, and evaluated for impairment. The Bank is required to maintain an investment in common stock of the FHLB and Federal Reserve Bank because the Bank is a member of the FHLB and the Federal Reserve System. We consider these stocks to be nonmarketable equity securities.

Federal Home Loan Bank of Cincinnati reported profits for 2013 and 2012, remains in compliance with regulatory capital and liquidity requirements, continues to pay dividends on the stock and redeems its stock at par value. With consideration given to these factors, management concluded that the stock was not impaired at December 31, 2013 or 2012.

LOANS

Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, generally are stated at their outstanding principal amount, adjusted for charge-offs, the allowance for loan losses and any deferred loan fees or costs on originated loans. Interest is accrued based upon the daily outstanding principal balance. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield over the life of the related loan.

Interest income is not reported when full repayment is in doubt, typically when the loan is impaired or payments are past due over 90 days. All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

At origination, a determination is made whether a loan will be held in the Bank’s portfolio or is intended for sale in the secondary market. Mortgage loans held for sale are recorded at the lower of the aggregate cost or fair value. Generally these loans are held for sale for less than three days. The Bank includes gains and losses on sales of the loans held for sale when the sale is completed.

ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect borrowers’ ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate, and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment disclosures.

OTHER REAL ESTATE OWNED

Other real estate acquired through or in lieu of foreclosure is initially recorded at fair value, less estimated costs to sell, and any loan balance in excess of fair value is charged to the allowance for loan losses. Subsequent valuations are periodically performed and write-downs are included in other operating expense, as are gains or losses upon sale and expenses related to maintenance of the properties. Other real estate owned amounted to $0 and $25 thousand at December 31, 2013 and 2012, respectively.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        31

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

PREMISES AND EQUIPMENT

Premises and equipment is stated at cost less accumulated depreciation and amortization. Upon the sale or disposition of the assets, the difference between the depreciated cost and proceeds is charged or credited to income. Depreciation and amortization is determined based on the estimated useful lives of the individual assets (typically 20 to 40 years for buildings and 3 to 10 years for equipment) and is computed using the straight-line method.

GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS

Goodwill is not amortized, but is tested at least annually for impairment in the fourth quarter or more frequently if indicators of impairment are present. The evaluation for impairment involves comparing the estimated current fair value of the reporting unit to its carrying value, including goodwill. If the estimated current fair value of a reporting unit exceeds its carrying value, no additional testing is required and an impairment loss is not recorded. CSB uses market capitalization and multiples of tangible book value methods to determine the estimated current fair value of its reporting unit. Based on this analysis no impairment was recorded in 2013 or 2012.

The core deposit intangible assets are assigned useful lives, which are amortized on an accelerated basis over their weighted average lives. The Company periodically reviews the intangible asset for impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.

MORTGAGE SERVICING RIGHTS

Mortgage servicing rights (“MSRs”) represent the right to service loans for third party investors. MSRs are recognized as a separate asset upon the sale of mortgage loans to a third party investor with the servicing rights retained by CSB. Originated MSRs are recorded at allocated fair value at the time of the sale of the loans to the third party investor. MSRs are amortized in proportion to and over the estimated period of net servicing income. MSRs are carried at amortized cost, less a valuation allowance for impairment, if any. MSRs are evaluated on a discounted earnings basis to determine the present value of future earnings of the underlying serviced mortgages. All assumptions are reviewed annually or more frequently, if necessary, and adjusted to reflect current and anticipated market conditions.

BANK-OWNED LIFE INSURANCE

The cash surrender value of these policies is included as an asset on the Consolidated Balance Sheets and any increases in the cash surrender value are recorded as noninterest income on the Consolidated Statements of Income. In the event of the death of an insured individual under these policies, the Company would receive a death benefit, which would be recorded as noninterest income.

REPURCHASE AGREEMENTS

Substantially all securities sold under repurchase agreements represent amounts advanced by various customers. Securities owned by the Bank are pledged to cover those obligations. These repurchase agreements are not deposits and are not covered by federal deposit insurance.

ADVERTISING COSTS

All advertising costs are expensed as incurred. Advertising expenses amounted to $175 thousand, $190 thousand and $175 thousand for the years ended 2013, 2012 and 2011 respectively.

FEDERAL INCOME TAXES

The Company and its subsidiaries file a consolidated tax return. Deferred income taxes are provided on temporary differences between financial statement and income tax reporting. Temporary differences are differences between the amounts of assets and liabilities reported for financial statement purposes and their tax bases. Deferred tax assets are recognized for temporary differences that will be deductible in future years’ tax returns and for operating loss and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax liabilities are recognized for temporary differences that will be taxable in future years’ tax returns.

The Bank, domiciled in Ohio, is not currently subject to state and local income taxes.

32        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

STOCK-BASED COMPENSATION

The Company sponsored a stock-based compensation plan, administered by a committee. The incentive stock option plan expired in 2012. The Company recorded no stock-based compensation expense for 2013, 2012 or 2011. There was no income tax benefit recognized in the accompanying Consolidated Statements of Income related to stock-based compensation in 2013, 2012 or 2011. Shares issued in connection with stock option exercises were issued from available treasury shares in 2013.

As of December 31, 2013, there was no unrecognized compensation cost related to unvested share-based compensation awards outstanding. All shares are vested.

The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the option and each vesting date. CSB estimates the fair value of stock options on the date of the grant using the Black-Scholes option pricing model. The model requires the use of numerous assumptions, many of which are highly subjective in nature. There were no option grants for the years ended December 31, 2013 and 2012.

COMPREHENSIVE INCOME

The Company includes recognized revenue, expenses, gains and losses in net income. Although certain changes in assets and liabilities such as unrealized gains and losses on available-for-sale securities are reported as a separate component of the equity section of the Consolidated Balance Sheets, these items along with net income are components of comprehensive income.

TRANSFERS OF FINANCIAL ASSETS

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

PER SHARE DATA

Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during each year. Diluted income per common share includes the dilutive effect of additional potential common shares issuable under stock options.

The weighted average number of common shares outstanding for basic and diluted earnings per share computations was as follows:

	2013			2012			2011
Weighted average common shares		2,980,602			2,980,602			2,980,602
Average treasury shares		(244,129	)		(245,713	)		(245,803	)
Total weighted average common shares outstanding (basic)		2,736,473			2,734,889			2,734,799
Dilutive effect of assumed exercise of stock options		2,004			252			39
Weighted average common shares outstanding (diluted)		2,738,477			2,735,141			2,734,838

Dividends per share are based on the number of shares outstanding at the declaration date.

There were no stock options that were antidilutive at December 31, 2013. Options to purchase an aggregate of 29,760 common shares at $18.00 per share were outstanding at December 31, 2012 and 2011 and were antidilutive.

ACCOUNTING DEVELOPMENTS

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The standard requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. The new requirements took effect for public companies in fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted this standard on January 1, 2013. The effect of adopting this standard increased our disclosure surrounding reclassification items out of accumulated other comprehensive income.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        33

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

RECLASSIFICATION OF COMPARATIVE AMOUNTS

Certain comparative amounts from the prior years have been reclassified to conform to current year classifications. Such classifications had no effect on net income or shareholders’ equity.

34        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – SECURITIES

Securities consist of the following at December 31:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
2013
Available-for-sale:
U.S. Treasury security	$	1,005	$	—	$	8	$	997
U.S. Government agencies		22,999		8		706		22,301
Mortgage-backed securities of government agencies		54,455		536		691		54,300
Other mortgage-backed securities		230		5		—		235
Asset-backed securities of government agencies		2,739		36		—		2,775
State and political subdivisions		16,219		371		143		16,447
Corporate bonds		4,500		44		5		4,539
Equity securities		106		23		1		128
Total available-for-sale		102,253		1,023		1,554		101,722
Held-to-maturity securities
U.S. Government agencies		19,186		—		828		18,358
Mortgage-backed securities of government agencies		25,164		—		879		24,285
Total held-to-maturity		44,350		—		1,707		42,643
Restricted stock		5,463		—		—		5,463
Total securities	$	152,066	$	1,023	$	3,261	$	149,828
2012
Available-for-sale:
U.S. Treasury security	$	100	$	—	$	—	$	100
U.S. Government agencies		35,996		27		43		35,980
Mortgage-backed securities of government agencies		66,588		2,107		—		68,695
Other mortgage-backed securities		345		—		1		344
Asset-backed securities of government agencies		2,862		—		39		2,823
State and political subdivisions		16,194		701		12		16,883
Corporate bonds		4,313		112		28		4,397
Equity securities		69		9		9		69
Total available-for-sale		126,467		2,956		132		129,291
Restricted stock		5,463		—		—		5,463
Total securities	$	131,930	$	2,956	$	132	$	134,754

2013 Report to Shareholders  |  CSB Bancorp, Inc.        35

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – SECURITIES (CONTINUED)

The amortized cost and fair value of securities at December 31, 2013, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(Dollars in thousands)	Amortized Cost		Fair Value
Available-for-sale:
Due in one year or less	$	855	$	875
Due after one through five years		17,354		17,500
Due after five through ten years		22,455		22,033
Due after ten years		61,483		61,186
Total debt securities available-for-sale	$	102,147	$	101,594
Held-to-maturity:
Due in one year or less	$	—	$	—
Due after one through five years		—		—
Due after five through ten years		7,717		7,568
Due after ten years		36,633		35,075
Total debt securities held-to-maturity	$	44,350	$	42,643

Securities with a market value of approximately $87.9 million and $79.2 million were pledged at December 31, 2013 and 2012, respectively, to secure public deposits, as well as other deposits and borrowings as required or permitted by law.

Restricted stock primarily consists of investments in FHLB and Federal Reserve Bank stock. The Bank’s investment in FHLB stock amounted to $5.0 million at December 31, 2013 and 2012. Federal Reserve Bank stock was $471 thousand at December 31, 2013 and 2012.

The following table shows the proceeds from sales of available-for-sale securities and the gross realized gains and losses on the sales of those securities that have been included in earnings as a result of the sales in 2013 and 2011. There were no securities sold during 2012.

(Dollars in thousands)	2013		2011
Proceeds	$	4,309	$	3,244
Realized gains	$	159	$	237
Realized losses		—		—
Impairment losses		—		—
Net securities gains	$	159	$	237

The income tax provision applicable to realized gains amounted to $54 thousand in 2013 and $81 thousand in 2011. There were no tax benefits recognized from gross realized losses in 2013, 2012 or 2011.

36        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – SECURITIES (CONTINUED)

The following table presents gross unrealized losses and fair value of securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31:

	Securities in a Continuous Unrealized Loss Position
	Less Than 12 Months				12 Months Or More				Total
(Dollars in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
2013
Available-for-sale
U.S. Treasury security	$	8	$	997	$	—	$	—	$	8	$	997
U.S. Government agencies		590		15,409		116		1,884		706		17,293
Mortgage-backed securities of government agencies		691		29,938		—		—		691		29,938
State and political subdivisions		122		3,522		21		233		143		3,755
Corporate bonds		4		1,163		1		499		5		1,662
Equity securities		—		—		1		1		1		1
Held-to-maturity
U.S. Government agencies		771		14,559		57		1,799		828		16,358
Mortgage-backed securities of government agencies		879		20,149		—		—		879		20,149
Total temporarily impaired securities	$	3,065	$	85,737	$	196	$	4,416	$	3,261	$	90,153
2012
Available-for-sale
U.S. Government agencies	$	43	$	15,957	$	—	$	—	$	43	$	15,957
Other mortgage-backed securities		1		344		—		—		1		344
Asset-backed securities of government agencies		39		1,833		—		—		39		1,833
State and political subdivisions		12		1,737		—		—		12		1,737
Corporate bonds		4		366		24		975		28		1,341
Total debt securities		99		20,237		24		975		123		21,212
Equity securities		—		—		9		45		9		45
Total temporarily impaired securities	$	99	$	20,237	$	33	$	1,020	$	132	$	21,257

There were seventy-three (73) securities in an unrealized loss position at December 31, 2013, seven (7) of which were in a continuous loss position for twelve or more months. At least quarterly, the Company conducts a comprehensive security-level impairment assessment. The assessments are based on the nature of the securities, the extent and duration of the securities, the extent and duration of the loss, management’s intent to sell or if it is more likely than not that management will be required to sell a security before recovery of its amortized cost basis, which may be maturity. Management believes the Company will fully recover the cost of these securities and it does not intend to sell these securities and likely will not be required to sell them before the anticipated recovery of the remaining amortized cost basis, which may be maturity. As a result, management concluded that these securities were not other-than-temporarily impaired at December 31, 2013.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        37

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – LOANS

Loans consist of the following at December 31:

(Dollars in thousands)	2013		2012
Commercial	$	117,478	$	104,899
Commercial real estate		129,828		119,192
Residential real estate		111,445		110,412
Construction & land development		13,444		23,358
Consumer		6,687		6,480
Total loans before deferred costs		378,882		364,341
Deferred loan costs		243		239
Total loans	$	379,125	$	364,580

Loan Origination/Risk Management

The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions.

Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Underwriting standards are designed to promote relationship banking rather than transactional banking. The Company’s management examines current and occasionally projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. However, the cash flows of borrowers may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. At December 31, 2013 and 2012, approximately 77% and 81%, respectively of the outstanding principal balance of the Company’s commercial real estate loans were secured by owner-occupied properties.

With respect to loans to developers and builders that are secured by non-owner occupied properties, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction and land development loans are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, and financial analysis of the developers and property owners. Construction and land development loans are generally based upon estimates of costs and value associated with the completed project. These estimates may be inaccurate. Construction and land development loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.

38        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – LOANS (CONTINUED)

The Company originates consumer loans utilizing a judgmental underwriting process. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed, jointly by line and staff personnel. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk.

The Company maintains an independent loan review department that reviews and validates the credit risk program on a periodic basis. Results of these reviews are presented to management. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures.

Concentrations of Credit

Nearly all of the Company’s lending activity occurs within the State of Ohio, including the four counties of Holmes, Stark, Tuscarawas and Wayne, as well as other markets. The majority of the Company’s loan portfolio consists of commercial and industrial and commercial real estate loans. As of December 31, 2013 and 2012, there were no concentrations of loans greater than 7% related to any single industry.

Allowance for Loan Losses

The following table details activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2013, 2012 and 2011. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

(Dollars in thousands)	Commercial			Commercial Real Estate			Residential Real Estate			Construction & Land Development			Consumer			Unallocated			Total
December 31, 2013
Beginning balance	$	933		$	1,902		$	1,096		$	253		$	76		$	320		$	4,580
Provision for loan losses		451			78			173			(75	)		13			200			840
Charge-offs		(190	)		(108	)		(82	)		—			(48	)					(428	)
Recoveries		25			—			18			—			50						93
Net charge-offs		(165)			(108)			(64)			—			2						(335)
Ending balance	$	1,219		$	1,872		$	1,205		$	178		$	91		$	520		$	5,085
December 31, 2012
Beginning balance	$	1,024		$	1,673		$	894		$	180		$	78		$	233		$	4,082
Provision for loan losses		(78	)		512			206			73			23			87			823
Charge-offs		(29	)		(283	)		(106	)		—			(89	)					(507	)
Recoveries		16			—			102			—			64						182
Net charge-offs		(13)			(283)			(4)			—			(25)						(325)
Ending balance	$	933		$	1,902		$	1,096		$	253		$	76		$	320		$	4,580
December 31, 2011
Beginning balance	$	1,179		$	1,183		$	1,057		$	213		$	80		$	319		$	4,031
Provision for loan losses		294			558			115			8			61			(86	)		950
Charge-offs		(487	)		(68	)		(297	)		(41	)		(121	)					(1,014	)
Recoveries		38			—			19			—			58						115
Net charge-offs		(449)			(68)			(278)			(41)			(63)						(899)
Ending balance	$	1,024		$	1,673		$	894		$	180		$	78		$	233		$	4,082

2013 Report to Shareholders  |  CSB Bancorp, Inc.        39

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – LOANS (CONTINUED)

The following table presents the balance in the allowance for loan losses and the ending loan balances by portfolio segment and impairment method as of December 31:

(Dollars in thousands)	Commercial		Commercial Real Estate		Residential Real  Estate		Construction & Land Development		Consumer		Unallocated		Total
2013
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$	241	$	331	$	212	$	—	$	—	$	—	$	784
Collectively evaluated for impairment		978		1,541		993		178		91		520		4,301
Total ending allowance balance	$	1,219	$	1,872	$	1,205	$	178	$	91	$	520	$	5,085
Loans:
Loans individually evaluated for impairment	$	5,576	$	3,220	$	1,844	$	—	$	—			$	10,640
Loans collectively evaluated for impairment		111,902		126,608		109,601		13,444		6,687				368,242
Total ending loans balance	$	117,478	$	129,828	$	111,445	$	13,444	$	6,687			$	378,882
2012
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$	85	$	522	$	172	$	—	$	—	$	—	$	779
Collectively evaluated for impairment		848		1,380		924		253		76		320		3,801
Total ending allowance balance	$	933	$	1,902	$	1,096	$	253	$	76	$	320	$	4,580
Loans:
Loans individually evaluated for impairment	$	4,315	$	4,573	$	1,137	$	166	$	—			$	10,191
Loans collectively evaluated for impairment		100,584		114,619		109,275		23,192		6,480				354,150
Total ending loans balance	$	104,899	$	119,192	$	110,412	$	23,358	$	6,480			$	364,341

40        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – LOANS (CONTINUED)

The following table presents loans individually evaluated for impairment by class of loans as of December 31:

(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
2013
Commercial	$	5,595	$	7	$	5,580	$	5,587	$	241	$	4,185	$	182
Commercial real estate		3,540		563		2,658		3,221		331		3,650		163
Residential real estate		2,001		337		1,510		1,847		212		1,315		41
Construction & land development		—		—		—		—		—		21		2
Total impaired loans	$	11,136	$	907	$	9,748	$	10,655	$	784	$	9,171	$	388
2012
Commercial	$	4,315	$	—	$	4,329	$	4,329	$	85	$	4,123	$	167
Commercial real estate		4,906		1,723		2,849		4,572		522		4,396		152
Residential real estate		1,223		86		1,057		1,143		172		770		18
Construction & land development		173		166		—		166		—		167		—
Total impaired loans	$	10,617	$	1,975	$	8,235	$	10,210	$	779	$	9,456	$	337
2011
Commercial	$	4,605	$	—	$	4,605	$	4,605	$	165	$	2,890	$	91
Commercial real estate		2,621		—		2,476		2,476		304		2,924		78
Residential real estate		182		—		182		182		53		103		—
Construction & land development		—		—		—		—		—		—		—
Total impaired loans	$	7,408	$	—	$	7,263	$	7,263	$	522	$	5,917	$	169

2013 Report to Shareholders  |  CSB Bancorp, Inc.        41

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – LOANS (CONTINUED)

The following table presents the aging of past due and nonaccrual loans by class of loans as of December 31:

(Dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days + Past Due		Nonaccrual		Total Past Due and Nonaccrual		Total Loans
2013
Commercial	$	117,342	$	15	$	37	$	—	$	84	$	136	$	117,478
Commercial real estate		128,462		111		107		40		1,108		1,366		129,828
Residential real estate		109,274		616		467		46		1,042		2,171		111,445
Construction & land development		12,494		—		—		950		—		950		13,444
Consumer		6,524		123		40		—		—		163		6,687
Total loans	$	374,096	$	865	$	651	$	1,036	$	2,234	$	4,786	$	378,882
2012
Commercial	$	104,348	$	60	$	8	$	—	$	483	$	551	$	104,899
Commercial real estate		117,372		41		34		—		1,745		1,820		119,192
Residential real estate		108,574		472		430		131		805		1,838		110,412
Construction & land development		23,180		—		5		—		173		178		23,358
Consumer		6,325		132		23		—		—		155		6,480
Total loans	$	359,799	$	705	$	500	$	131	$	3,206	$	4,542	$	364,341

Troubled Debt Restructurings

The Company had troubled debt restructurings (“TDRs”) of $8.6 million as of December 31, 2013, with $583 thousand of specific reserves allocated to customers whose loan terms have been modified in troubled debt restructurings. As of December 31, 2012, the Company had TDRs of $8.7 million, with $718 thousand of specific reserves allocated. At December 31, 2013, $7.8 million of the loans classified as TDRs were performing in accordance with their modified terms. Of the remaining $719 thousand, all were in nonaccrual of interest status.

None of the loans that were restructured in 2012 have defaulted in 2013. Of the loans that were restructured in 2011, one loan in the amount of $54 thousand subsequently defaulted in 2012. All of the loan modifications include extensions of the loan maturity dates.

Loan modifications that are considered TDRs completed during the year ended December 31:

(Dollars in thousands)	Number Of Loans Restructured		Pre-Modification Recorded Investment		Post-Modification Recorded Investment
2013
Commercial		3	$	83	$	83
Residential real estate		3		264		264
Total restructured loans		6	$	347	$	347
2012
Commercial real estate		2	$	177	$	177
Residential real estate		9		798		798
Total restructured loans		11	$	975	$	975

42        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – LOANS (CONTINUED)

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis includes commercial loans with an outstanding balance greater than $275 thousand. This analysis is performed on an annual basis. The Company uses the following definitions for risk ratings:

Pass. Loans classified as pass (Acceptable, Low Acceptable or Pass Watch) may exhibit a wide array of characteristics but at a minimum represent an acceptable risk to the Bank. Borrowers in this rating may have leveraged but acceptable balance sheet positions, satisfactory asset quality, stable to favorable sales and earnings trends, acceptable liquidity and adequate cash flow. Loans are considered fully collectible and require an average amount of administration. While generally adhering to credit policy, these loans may exhibit occasional exceptions that do not result in undue risk to the Bank. Borrowers are generally capable of absorbing setbacks, financial and otherwise, without the threat of failure.

Special Mention. Loans classified as special mention have a material weakness that deserves management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $275 thousand or are included in groups of homogeneous loans. Based on the most recent analysis performed, the risk category of loans by class is as follows at December 31:

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
2013
Commercial	$	101,195	$	10,352	$	5,066	$	—	$	865	$	117,478
Commercial real estate		115,265		9,076		4,041		—		1,446		129,828
Residential real estate		237		—		47		—		111,161		111,445
Construction & land development		9,470		587		1,884		—		1,503		13,444
Consumer		—		—		—		—		6,687		6,687
Total	$	226,167	$	20,015	$	11,038	$	—	$	121,662	$	378,882
2012
Commercial	$	92,123	$	5,854	$	6,637	$	—	$	285	$	104,899
Commercial real estate		102,602		5,671		8,459		—		2,460		119,192
Residential real estate		200		—		53		—		110,159		110,412
Construction & land development		18,063		2,750		1,244		—		1,301		23,358
Consumer		—		—		—		—		6,480		6,480
Total	$	212,988	$	14,275	$	16,393	$	—	$	120,685	$	364,341

2013 Report to Shareholders  |  CSB Bancorp, Inc.        43

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – LOANS (CONTINUED)

Nonperforming loans include loans past due 90 days and greater and loans on nonaccrual of interest status. The following table presents loans that are not rated, by class of loans as of December 31:

(Dollars in thousands)	Performing		Nonperforming		Total
2013
Commercial	$	865	$	—	$	865
Commercial real estate		1,446		—		1,446
Residential real estate		110,119		1,042		111,161
Construction & land development		1,503		—		1,503
Consumer		6,687		—		6,687
Total	$	120,620	$	1,042	$	121,662
2012
Commercial	$	285	$	—	$	285
Commercial real estate		2,460		—		2,460
Residential real estate		109,276		883		110,159
Construction & land development		1,294		7		1,301
Consumer		6,480		—		6,480
Total	$	119,795	$	890	$	120,685

Mortgage Servicing Rights

For the years ended December 31, 2013 and 2012, the Company had outstanding mortgage servicing rights (“MSRs”) of $225 thousand and $214 thousand, respectively. No valuation allowance was recorded at December 31, 2013 or 2012 as the fair value of the MSRs exceeded their carrying value. On December 31, 2013, the Company had $56.9 million residential mortgage loans with servicing retained as compared to $52.7 million with servicing retained at December 31, 2012.

Total loans serviced for others approximated $70.2 million and $60.2 million at December 31, 2013 and 2012, respectively.

44        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4 – PREMISES AND EQUIPMENT

Premises and equipment consist of the following at December 31:

(Dollars in thousands)	2013		2012
Land and improvements	$	1,489	$	1,489
Buildings and improvements		9,656		9,422
Furniture and equipment		7,327		6,763
Leasehold improvements		260		260
		18,732		17,934
Accumulated depreciation		10,042		9,459
Premises and equipment, net	$	8,690	$	8,475

The Bank leases certain office locations. Total rental expense under these leases approximated $299 thousand, $298 thousand, and $187 thousand in 2013, 2012 and 2011, respectively. Depreciation expense amounted to $625 thousand, $567 thousand and $530 thousand for the years ended December 31, 2013, 2012 and 2011, respectively.

Future minimum lease payments at December 31, 2013 were as follows:

(Dollars in thousands)
2014	$	299
2015		294
2016		172
2017		32
Total	$	797

NOTE 5 – CORE DEPOSIT INTANGIBLE ASSETS

Core Deposit Intangible

No additional core deposit intangible was recorded in 2013 or 2012, with $706 thousand recorded as a result of the acquisition of two branches in Wooster, Ohio in 2011. The core deposit intangible asset will be amortized over an estimated life of ten years. Amortization expense related to the core deposit intangible asset totaled $135 thousand, $140 thousand and $78 thousand in 2013, 2012 and 2011, respectively. The following table shows the core deposit intangible and the related accumulated amortization as of December 31:

(Dollars in thousands)	2013			2012			2011
Gross carrying amount	$	1,251		$	1,251		$	1,251
Accumulated amortization		(492	)		(357	)		(217	)
Net carrying amount	$	759		$	894		$	1,034

2013 Report to Shareholders  |  CSB Bancorp, Inc.        45

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5 – CORE DEPOSIT INTANGIBLE ASSETS (CONTINUED)

The estimated aggregate future amortization expense for the core deposit assets remaining as of December 31, 2013 is as follows:

(Dollars in thousands)	Core Deposit Amortization
2014	$	129
2015		125
2016		121
2017		116
2018		101
Thereafter		167
	$	759

NOTE 6 – INTEREST-BEARING DEPOSITS

Interest-bearing deposits at December 31 are as follows:

(Dollars in thousands)	2013		2012
Demand	$	76,327	$	74,429
Savings		149,937		138,794
Time deposits:
In excess of $100,000		42,562		54,163
Other		91,782		103,910
Total interest-bearing deposits	$	360,608	$	371,296

At December 31, 2013, stated maturities of time deposits were as follows:

(Dollars in thousands)
2014	$	75,051
2015		25,282
2016		18,791
2017		8,271
2018		6,902
2019 and beyond		47
Total	$	134,344

46        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7 – BORROWINGS

Short-term borrowings

Short-term borrowings include overnight repurchase agreements, federal funds purchased and short-term advances through the FHLB. The outstanding balances and related information for short-term borrowings are summarized as follows:

(Dollars in thousands)	2013			2012
Balance at year-end	$	48,671		$	43,992
Average balance outstanding		45,330			40,893
Maximum month-end balance		48,671			43,992
Weighted-average rate at year-end		0.15	%		0.20	%
Weighted-average rate during the year		0.15			0.22

Average balances outstanding during the year represent daily average balances, and average interest rates represent interest expenses divided by the related average balances.

Other borrowings

The following table sets forth information concerning other borrowings:

	Maturity Range				Weighted Average Interest			Stated Interest Rate Range						At December 31,
(Dollars in thousands)	From		To		Rate			From			To			2013		2012
Fixed rate		10/2/14		12/21/17		3.62	%		3.48	%		3.73	%	$	12,000	$	12,000
Fixed rate amortizing		1/1/14		3/1/17		5.99			4.80			7.15			459		672
														$	12,459	$	12,672

Maturities of other borrowings at December 31, 2013, are summarized as follows for the years ended December 31:

(Dollars in thousands)	Amount		Weighted Average Rate
2014	$	2,190		3.91	%
2015		169		6.01
2016		97		5.84
2017		10,003		3.61
	$	12,459		3.71	%

Monthly principal and interest payments are due on the fixed rate amortizing borrowings; additionally a 10% principal curtailment is due on the borrowing’s anniversary date. FHLB borrowings are secured by a blanket collateral agreement. At December 31, 2013 the Company has the capacity to borrow an additional $42.1 million from the FHLB.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        47

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 – INCOME TAXES

The provision for income taxes consists of the following for the years ended December 31:

(Dollars in thousands)	2013		2012			2011
Current	$	2,196	$	2,040		$	1,257
Deferred		77		(50	)		345
Total income tax provision	$	2,273	$	1,990		$	1,602

The income tax provision attributable to income from operations differs from the amounts computed by applying the statutory federal income tax rate of 34% to income before income taxes as follows:

(Dollars in thousands)	2013			2012			2011
Expected provision using statutory federal income tax rate	$	2,554		$	2,223		$	1,798
Tax-exempt income on state and municipal securities and political subdivision loans		(203	)		(269	)		(169	)
Interest expense associated with carrying certain state and municipal securities and political subdivision loans		6			6			8
Tax-exempt income on bank owned life insurance		(86	)		(78	)		(36	)
Other		2			108			1
Total income tax provision	$	2,273		$	1,990		$	1,602

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31 are as follows:

(Dollars in thousands)	2013			2012
Allowance for loan losses	$	1,887		$	1,470
Net operating loss carryforward		470			598
Capital loss carryforward		35			35
Unrealized loss on securities available-for-sale		750			—
Other		37			109
		3,179			2,212
Valuation allowance on deferred tax assets		(35)			(35)
Deferred tax assets		3,144			2,177
Premises and equipment		(443	)		(399	)
Federal Home Loan Bank stock dividends		(736	)		(736	)
Deferred loan fees		(226	)		(173	)
Unrealized gain on securities available-for-sale		—			(960	)
Prepaid expenses		(120	)		(120	)
Other		(462	)		(265	)
Deferred tax liabilities		(1,987	)		(2,653	)
Net deferred tax asset (liability)	$	1,157		$	(476	)

48        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 – INCOME TAXES (CONTINUED)

The Company has a net operating loss tax carryforward of approximately $1.4 million, as of December 31, 2013. The net operating loss carryforward can be used to offset future taxable income and will begin to expire in tax year 2026.

The Company believes it is more likely than not that the benefit of deferred tax assets will be realized with the possible exception of the capital loss carryforward due to expire in 2014. A valuation allowance for the capital loss carryforward is reflected at December 31, 2013 and 2012. No additional valuation allowance is deemed necessary in view of certain tax strategies, coupled with the anticipated future taxable income as evidenced by the Company’s earnings.

There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. CSB recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statement of Income. With few exceptions, CSB is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years prior to 2010.

NOTE 9 – EMPLOYEE BENEFITS

The Company sponsors a contributory 401(k) profit-sharing plan (the “Plan”) covering substantially all employees who meet certain age and service requirements. The Plan permits investment in the Company’s common stock subject to various limitations and provides for discretionary profit sharing and matching contributions. The discretionary profit sharing contribution is determined annually by the Board of Directors and amounted to 2.75% of each eligible participant’s compensation in 2013 and 2.5% of each eligible participant’s compensation for 2012 and 2011, respectively. The Plan also provides for a 50% Company match of participant contributions up to a maximum of 2% of each participant’s annual compensation. Expense under the Plan amounted to approximately $284 thousand, $270 thousand and $242 thousand for 2013, 2012 and 2011, respectively.

The Company maintains a stock option plan. No stock options were granted during the three years presented.

The following summarizes stock options activity for the years ended December 31:

	2013						2012						2011
	Shares			Weighted Average Exercise Price			Shares			Weighted Average Exercise Price			Shares			Weighted Average Exercise Price
Outstanding at beginning of year		31,760		$	17.85			39,620		$	17.49			39,945		$	17.48
Granted		—			—			—			—			—			—
Exercised		(1,000	)		(16.10	)		(4,650	)		(16.05	)		—			—
Forfeited		—						(3,210	)		(16.06	)		(325	)		(16.05	)
Outstanding at end of year		30,760			17.90			31,760			17.85			39,620			17.49
Options exercisable at year-end		30,760		$	17.90			31,760		$	17.85			39,620		$	17.49
Weighted-average fair value of options granted during year					N/A						N/A						N/A

Options outstanding at December 31, 2013 were as follows:

	Outstanding
Range Of Exercise Prices	Number		Weighted Average Remaining Contractual Life (Years)		Number		Weighted Average Exercise Price
$ 15.00		1,000		0.60		1,000	$	15.00
18.00		29,760		2.22		29,760		18.00
Outstanding at year-end		30,760		2.17		30,760	$	17.90

2013 Report to Shareholders  |  CSB Bancorp, Inc.        49

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 9 – EMPLOYEE BENEFITS (CONTINUED)

The total intrinsic value of outstanding in-the-money stock options and outstanding in-the-money exercisable stock options was $34 thousand and $4 thousand at December 31, 2013 and 2012, respectively. There were 1,000 and 4,650 stock options exercised in 2013 and 2012, respectively and no stock options exercised in 2011. There were no share awards vested in 2013 or 2012.

NOTE 10 – FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

The Bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are primarily loan commitments to extend credit and letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the Consolidated Balance Sheets. The contract amount of these instruments reflects the extent of involvement the Bank has in these financial instruments. The Bank’s exposure to credit loss in the event of the nonperformance by the other party to the financial instruments for loan commitments to extend credit and letters of credit is represented by the contractual amounts of these instruments. The Bank uses the same credit policies in making loan commitments as it does for on-balance sheet loans.

The following financial instruments whose contract amount represents credit risk were outstanding at December 31:

(Dollars in thousands)	2013		2012
Commitments to extend credit	$	119,571	$	105,829
Letters of credit	$	679	$	1,539

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral, obtained if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, recognized inventory, property, plant and equipment, and income-producing commercial properties.

Letters of credit are written conditional commitments issued by the Company to guarantee the performance of a customer to a third party and are reviewed for renewal at expiration. All letters of credit outstanding at December 31, 2013 are due on demand or expire in 2014. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company requires collateral supporting these commitments when deemed appropriate.

NOTE 11 – RELATED-PARTY TRANSACTIONS

In the ordinary course of business, loans are granted by the Company to executive officers, directors and their related business interests consistent with Federal Reserve Regulation O. The following is an analysis of activity of related-party loans for the year end December 31, 2013:

(Dollars in thousands)
Balance at beginning of year	$	6,218
New loans and advances		315
Repayments, including loans sold		1,441
Balance at end of year	$	5,092

Deposits from executive officers, directors and their related business interests at both December 31, 2013 and 2012 were approximately $10.4 million and $10.5 million.

50        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12 – REGULATORY MATTERS

The Company (on a consolidated basis) and Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the following table) of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average assets (as defined). Management believes, as of December 31, 2013 and 2012, that the Company and Bank met or exceeded all capital adequacy requirements to which they are subject.

As of December 31, 2013, the most recent notification from federal and state banking agencies categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized” an institution must maintain minimum Total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no known conditions or events since that notification that Management believes have changed the Bank’s category.

The actual capital amounts and ratios of the Company and Bank as of December 31, are presented in the following tables:

						Minimum					Minimum Required
						Required For					To Be Well Capitalized
						Capital Adequacy					Under Prompt
	Actual					Purposes					Corrective Action
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
2013
Total capital (to risk-weighted assets)
Consolidated	$	53,268		13.6	%	$	31,416		8.0	%	$	39,270		10.0	%
Bank		52,458		13.4			31,392		8.0			39,240		10.0
Tier I capital (to risk-weighted assets)
Consolidated		48,357		12.3			15,708		4.0			23,562		6.0
Bank		47,558		12.1			15,696		4.0			23,544		6.0
Tier I capital (to average assets)
Consolidated		48,357		8.2			23,550		4.0			29,438		5.0
Bank		47,558		8.1			23,544		4.0			29,430		5.0
2012
Total capital (to risk-weighted assets)
Consolidated	$	49,534		13.3	%	$	29,707		8.0	%	$	37,134		10.0	%
Bank		48,940		13.2			29,695		8.0			37,118		10.0
Tier I capital (to risk-weighted assets)
Consolidated		44,946		12.1			14,854		4.0			22,280		6.0
Bank		44,352		12.0			14,847		4.0			22,271		6.0
Tier I capital (to average assets)
Consolidated		44,946		7.9			22,794		4.0			28,493		5.0
Bank		44,352		7.8			22,788		4.0			28,485		5.0

2013 Report to Shareholders  |  CSB Bancorp, Inc.        51

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12 – REGULATORY MATTERS (CONTINUED)

The Company’s primary source of funds with which to pay dividends are dividends received from the Bank. The payment of dividends by the Bank to the Company is subject to restrictions by its regulatory agencies. These restrictions generally limit dividends to current year net income and prior two-years’ net retained earnings. Also, dividends may not reduce capital levels below the minimum regulatory requirements disclosed in the prior table. Under these provisions, at January 1, 2014, the Bank could dividend $7.5 million to the Company. The Company does not anticipate the financial need to obtain regulatory approval due to its current cash balances and ability to access the credit markets. Federal law prevents the Company from borrowing from the Bank unless loans are secured by specific obligations. Further, such secured loans are limited to an amount not exceeding ten percent of the Bank’s common stock and capital surplus.

NOTE 13 – CONDENSED PARENT COMPANY FINANCIAL INFORMATION

A summary of condensed financial information of the parent company as of December 31, 2013 and 2012 and for each of the three years in the period ended December 31, 2013 follows:

(Dollars in thousands)	2013		2012
CONDENSED BALANCE SHEETS
ASSETS
Cash deposited with subsidiary bank	$	598	$	388
Investment in subsidiary bank		51,596		51,858
Securities available-for-sale		128		69
Other assets		192		207
TOTAL ASSETS	$	52,514	$	52,522
LIABILITIES AND SHAREHOLDERS’ EQUITY
Total liabilities	$	103	$	69
Total shareholders’ equity		52,411		52,453
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	52,514	$	52,522

(Dollars in thousands)	2013			2012			2011
CONDENSED STATEMENTS OF INCOME
Interest on securities	$	2		$	2		$	1
Dividends from subsidiary		2,400			2,000			2,300
Total income		2,402			2,002			2,301
Operating expenses		356			354			336
Income before taxes and undistributed equity income of subsidiary		2,046			1,648			1,965
Income tax benefit		(121	)		(120	)		(115	)
Equity earnings in subsidiary, net of dividends		3,073			2,779			1,607
NET INCOME	$	5,240		$	4,547		$	3,687
COMPREHENSIVE INCOME	$	1,920		$	4,981		$	4,244

52        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 13 – CONDENSED PARENT COMPANY FINANCIAL INFORMATION (CONTINUED)

(Dollars in thousands)	2013			2012			2011
CONDENSED STATEMENTS OF CASH FLOWS
Cash flows from operating activities:
Net income	$	5,240		$	4,547		$	3,687
Adjustments to reconcile net income to cash provided by operations:
Equity earnings in subsidiary, net of dividends		(3,073	)		(2,779	)		(1,607	)
Change in other assets, liabilities		42			49			48
Net cash provided by operating activities		2,209			1,817			2,128
Cash flows from investing activities:
Purchase of investment securities		(37	)		—			—
Net cash used in investing activities		(37	)		—			—
Cash flows from financing activities:
Cash dividends paid		(1,970	)		(1,969	)		(1,969	)
Cash received from exercise of stock options		8			5			—
Net cash used in financing activities		(1,962	)		(1,964	)		(1,969	)
Increase (decrease) in cash		210			(147	)		159
Cash at beginning of year		388			535			376
Cash at end of year	$	598		$	388		$	535

NOTE 14 – FAIR VALUE MEASUREMENTS

The Company provides disclosures about assets and liabilities carried at fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs. The three broad levels of the fair value hierarchy are described below:

Level I: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

Level II: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by or other means including certified appraisals. If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability.

Level III: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        53

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14 – FAIR VALUE MEASUREMENTS (CONTINUED)

The following table presents the assets reported on the consolidated statements of financial condition at their fair value as of December 31, 2013 and December 31, 2012, by level within the fair value hierarchy. No liabilities are carried at fair value. As required by the accounting standards, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Equity securities and U.S. Treasury Notes are valued at the closing price reported on the active market on which the individual securities are traded. Obligations of U.S. Government corporations and agencies, mortgage-backed securities, asset-backed securities and obligations of states and political subdivisions are valued at observable market data for similar assets.

(Dollars in thousands)	Level I		Level II		Level III		Total
	December 31, 2013
Assets:
Securities available-for-sale
U.S. Treasury security	$	997	$	—	$	—	$	997
U.S. Government agencies		—		22,301		—		22,301
Mortgage-backed securities of government agencies		—		54,535		—		54,535
Asset-backed securities of government agencies		—		2,775		—		2,775
State and political subdivisions		—		16,447		—		16,447
Corporate bonds		—		4,539		—		4,539
Total debt securities		997		100,597		—		101,594
Equity securities		128		—		—		128
Total available-for-sale securities	$	1,125	$	100,597	$	—	$	101,722
	December 31, 2012
Assets:
Securities available-for-sale
U.S. Treasury security	$	100	$	—	$	—	$	100
U.S. Government agencies		—		35,980		—		35,980
Mortgage-backed securities of government agencies		—		69,039		—		69,039
Asset-backed securities of government agencies		—		2,823		—		2,823
State and political subdivisions		—		16,883		—		16,883
Corporate bonds		—		4,397		—		4,397
Total debt securities		100		129,122		—		129,222
Equity securities		69		—		—		69
Total available-for-sale securities	$	169	$	129,122	$	—	$	129,291

54        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14 – FAIR VALUE MEASUREMENTS (CONTINUED)

The following table presents the assets measured on a nonrecurring basis on the consolidated balance sheets at their fair value as of December 31, 2013 and December 31, 2012, by level within the fair value hierarchy. Impaired loans and other real estate that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral securing the impaired loans include: quoted market prices for identical assets classified as Level I inputs; observable inputs, employed by certified appraisers, for similar assets classified as Level II inputs. In cases where valuation techniques included inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level III inputs.

The fair value of MSRs is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates discounted cash flow and repayment assumptions based on management’s best judgment. As a result, these rights are measured at fair value on a nonrecurring basis and are classified within Level III of the fair value hierarchy.

(Dollars in thousands)	Level I		Level II		Level III		Total
	December 31, 2013
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	9,856	$	9,856
Mortgage servicing rights		—		—		225		225
	December 31, 2012
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	9,412	$	9,412
Other real estate owned		—		—		25		25
Mortgage servicing rights		—		—		214		214

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level III inputs to determine fair value:

	Quantitative Information about Level III Fair Value  Measurements
(Dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
	December 31, 2013
Impaired loans	$	8,663	Discounted cash flow	Remaining term Discount rate	3 mos to 29 yrs / (62 mos) 7.1% to 12% / (7.5%)
		1,193	Appraisal of collateral1,3	Appraisal  adjustments2 Liquidation expense2	–20% to –25% –10%
Mortgage servicing rights		225	Discounted cash flow	Remaining term Discount rate	12 mos to 30 yrs / (244 mos) 1.5% / (1.5%)

2013 Report to Shareholders  |  CSB Bancorp, Inc.        55

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14 – FAIR VALUE MEASUREMENTS (CONTINUED)

	Quantitative Information about Level III Fair Value Measurements
(Dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
	December 31, 2012
Impaired loans	$	7,260	Discounted cash flow	Remaining term Discount rate	4 mos to 29 yrs / (74 mos) 7.5% to 12% / (7.8%)
		2,152	Appraisal of collateral1,3	Appraisal  adjustments2 Liquidation expense2	–20% to –35% –10%
Other real estate owned		25	Appraisal of collateral1,3	Management discount for property type3	0% to –67%
Mortgage servicing rights		214	Discounted cash flow	Remaining term Discount rate	24 mos to 30 yrs / (244 mos) 1.5% / (1.5%)

¹  Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various inputs which are not identifiable.

²  Appraisals may be adjusted by management for qualitative factors such as estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

³  Includes qualitative adjustments by management and estimated liquidation expenses.

NOTE 15 – FAIR VALUES OF FINANCIAL INSTRUMENTS

The estimated fair values of recognized financial instruments as of December 31 are as follows:

	2013
	Carrying								Total Fair
(Dollars in thousands)	Value		Level I		Level II		Level III		Value
Financial assets:
Cash and cash equivalents	$	42,599	$	42,599	$	—	$	—	$	42,599
Securities available-for-sale		101,722		1,125		100,597		—		101,722
Securities held-to-maturity		44,350		—		42,643		—		42,643
Restricted stock		5,463		—		5,463		—		5,463
Net loans		374,040		—		—		375,055		375,055
Bank-owned life insurance		9,551		9,551		—		—		9,551
Accrued interest receivable		1,374		1,374		—		—		1,374
Financial liabilities:
Deposits	$	480,933	$	346,589	$	—	$	135,106	$	481,695
Short-term borrowings		48,671		48,671		—		—		48,671
Other borrowings		12,459		—		—		12,559		12,559
Accrued interest payable		96		96		—		—		96

56        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 15 – FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

	2012
	Carrying								Total Fair
(Dollars in thousands)	Value		Level I		Level II		Level III		Value
Financial assets:
Cash and cash equivalents	$	66,878	$	66,878	$	—	$	—	$	66,878
Securities available-for-sale		129,291		169		129,122		—		129,291
Restricted stock		5,463		—		5,463		—		5,463
Net loans		360,000		—		—		367,028		367,028
Bank-owned life insurance		8,298		8,298		—		—		8,298
Accrued interest receivable		1,317		1,317		—		—		1,317
Financial liabilities:
Deposits	$	475,443	$	317,369	$	—	$	159,573	$	476,942
Short-term borrowings		43,992		43,992		—		—		43,992
Other borrowings		12,672		—		—		13,772		13,772
Accrued interest payable		135		135		—		—		135

For purposes of the above disclosures of estimated fair value, the following assumptions are used:

Cash and cash equivalents; Accrued interest receivable; Short-term borrowings, and Accrued interest payable

The fair value of the above instruments is considered to be carrying value.

Securities

The fair value of securities available-for-sale and securities held-to-maturity which are measured on a recurring basis are determined primarily by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other similar securities. Classified as Level I or Level II in the fair value hierarchy.

Net loans

The fair value for loans is estimated by discounting future cash flows using current market inputs at which loans with similar terms and qualities would be made to borrowers of similar credit quality. Where quoted market prices were available, primarily for certain residential mortgage loans, such market rates were utilized as estimates for fair value. Fair value of nonaccrual loans is based on carrying value, classified as Level III.

Bank-owned life insurance

The carrying amount of bank-owned life insurance is based on the cash surrender value of the policies and is a reasonable estimate of fair value, classified as Level I.

Restricted stock

Restricted stock includes FHLB Stock and Federal Reserve Bank Stock. It is not practicable to determine the fair value of regulatory equity securities due to restrictions placed on their transferability. Fair value is based on carrying value, classified as Level II.

Deposits

The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rates are estimated using market rates currently offered for similar instruments with similar remaining maturities, resulting in a Level III classification. Demand, savings, and money market deposit accounts are valued at the amount payable on demand as of quarter end, resulting in a Level I classification.

2013 Report to Shareholders  |  CSB Bancorp, Inc.        57

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 15 – FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

Other borrowings

The fair value of FHLB advances are estimated using a discounted cash flow analysis based on the current borrowing rates for similar types of borrowings, resulting in a Level III classification.

The Company also has unrecognized financial instruments at December 31, 2013 and 2012. These financial instruments relate to commitments to extend credit and letters of credit. The aggregated contract amount of such financial instruments was approximately $120.3 million at December 31, 2013 and $107.4 million at December 31, 2012. Such amounts are also considered to be the estimated fair values.

The fair value estimates of financial instruments are made at a specific point in time based on relevant market information. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument over the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Since no ready market exists for a significant portion of the financial instruments, fair value estimates are largely based on judgments after considering such factors as future expected credit losses, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates.

NOTE 16 – ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents the changes in accumulated other comprehensive (loss) income by component net of tax for the years ended December 31, 2013 and 2012.

(Dollars in thousands)	Pretax			Tax Effect			After-tax			Affected Line Item in the Consolidated Statements of Income
Balance as of December 31, 2012	$	2,823		$	(959	)	$	1,864
Unrealized holding loss on available-for-sale securities arising during the period		(3,195	)		1,086			(2,109	)
Amount reclassified for net gains included in net income		(159	)		54			(105	)	(a) (b)
Unrealized loss on securities transferred from available-for-sale to held-to-maturity		(1,931	)		657			(1,274	)
Amortization of held-to-maturity discount resulting from transfer		255			(87	)		168
Total other comprehensive loss		(5,030	)		1,710			(3,320	)
BALANCE AS OF DECEMBER 31, 2013	$	(2,207	)	$	751		$	(1,456	)
Balance as of December 31, 2011	$	2,166		$	(736	)	$	1,430
Unrealized holding gain on available-for-sale securities arising during the period		657			(223	)		434
Total other comprehensive income		657			(223	)		434
BALANCE AS OF DECEMBER 31, 2012	$	2,823		$	(959	)	$	1,864

(a) Securities gain, net.

(b) Federal income tax provision.

58        2013 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 17 – CONTINGENT LIABILITIES

In the normal course of business, the Company is subject to pending and threatened legal actions. Although, the Company is not able to predict the outcome of such actions, after reviewing pending and threatened actions, management believes that the outcome of any or all such actions will not have a material adverse effect on the results of operations or shareholders’ equity of the Company.

The Company has an employment agreement with an officer. Upon the occurrence of certain types of termination of employment, the Company may be required to make specified severance payments if termination occurs within a specified period of time, generally two years from the date of the agreement, or pursuant to certain change in control transactions.

NOTE 18 – QUARTERLY FINANCIAL DATA (UNAUDITED)

The following is a summary of selected quarterly financial data (unaudited) for the years ended December 31:

(Dollars in thousands, except per share data)	Interest Income		Net Interest Income		Net Income		Basic Earnings Per Share		Diluted Earnings Per Share
2013
First quarter	$	5,300	$	4,692	$	1,362	$	0.50	$	0.50
Second quarter		5,173		4,592		1,247		0.45		0.45
Third quarter		5,235		4,677		1,407		0.51		0.51
Fourth quarter		5,430		4,922		1,224		0.45		0.45
2012
First quarter	$	5,132	$	4,313	$	1,055	$	0.39	$	0.39
Second quarter		5,151		4,397		1,141		0.41		0.41
Third quarter		5,148		4,426		1,231		0.45		0.45
Fourth quarter		5,153		4,470		1,120		0.41		0.41

2013 Report to Shareholders  |  CSB Bancorp, Inc.        59

OFFICERS OF THE COMMERCIAL AND SAVINGS BANK

STEVEN R. BAILEY

Executive Vice President,

Chief Operations Officer,

Chief Information Officer

PAMELA S. BASINGER

Vice President,

Financial Officer

DEBORAH S. BERNER

Vice President,

Retail Services Manager,

Marketing & Public Relations

PAMELA L. BROMUND

Assistant Vice President,

Loan Operations Supervisor

WENDY D. BROWN

Assistant Vice President,

Bank Operations Manager

C. DAWN BUTLER

Vice President,

Regional Bank Manager

BEVERLY A. CARR

Operations Officer,

Bank Operations

COLBY CHAMBERLIN

Vice President,

Commercial Banker

DALE J. CLINTON

Vice President,

Internal Auditor

G. GAIL COCHRAN

Assistant Vice President,

Executive Loan Secretary

PEGGY L. CONN

Corporate Secretary

MARIANNE DAVIS

Assistant Vice President,

Banking Center Manager

CHRISTOPHER J. DELATORE

Vice President,

Commercial Banker

DAVID J. DOLAN

Assistant Vice President,

Mortgage Services Manager

CYNTHIA A. FERRY

Assistant Vice President,

Banking Center Manager

PAULA S. FOY

Vice President,

Compliance Officer/BSA Officer

LORI S. FRANTZ

Assistant Vice President,

Banking Center Manager

BRETT A. GALLION

Assistant Vice President,

Project Manager

CARRIE A. GERBER

Credit Officer

ERIC S. GERBER

Assistant Vice President,

Commercial Banker

MARC R. HARVEY

Officer,

Training Manager

BENJAMIN J. HERSHBERGER

Officer,

Banking Center Manager

JASON B. HUMMEL

Vice President,

Commercial Banker

JULIE A. JONES

Vice President,

Director of Human Resources

STEPHEN K. KILPATRICK

First Vice President,

Senior Credit Officer

KEVIN J. MCALLISTER

Vice President,

Trust Officer

ROBYN E. MCCLINTOCK

Vice President,

Regional Bank Manager

JASON R. MCCULLOCH

Vice President,

Brokerage Manager

SHERRY A. MCROBIE

Assistant Vice President,

Banking Center Manager

PAULA J. MEILER

Senior Vice President,

Chief Financial Officer

A. LEE MILLER

Vice President,

Cash Management & Special

Projects, CRA Officer

EDWARD J. MILLER

Vice President,

Operation Services Manager,

Security

MOLLY M. MOHR

Officer,

Banking Center Manager

DANIEL L. MUSE

Operations Officer

SHAWN E. OSWALD

Vice President,

Information System Director,

OFAC Officer

AMY R. PATTERSON

Assistant Vice President,

Loan Officer

ERICA S. PIATT

Assistant Vice President,

Banking Center Manager

THOMAS S. RUMBAUGH

Vice President,

Trust Officer

LISA M. SCHONAUER

Assistant Vice President,

Banking Center Manager

REBECCA J. SHULTZ

Assistant Vice President,

Loan Officer

BUD STEBBINS

First Vice President,

Senior Loan Officer

EDDIE L. STEINER

Chairman,

President,

Chief Executive Officer

STEVEN J. STIFFLER

Vice President,

Commercial Banker

ERIC D. STROUSE

Vice President,

Commercial Banker

ELAINE A. TEDROW

Assistant Vice President,

Banking Center Manager

JENNIFER M. THORPE

Assistant Vice President,

Senior Credit Analyst

WILLIAM R. TINLIN

Vice President,

Recovery, Right to Financial

Privacy Officer

BRIAN D. TROYER

Assistant Vice President,

Trust Officer

ALICIA R. WALLACE

Vice President,

Commercial Banker

JANE C. WHITMER

Officer,

Assistant Banking Center

Manager

MICHAEL D. WORKMAN

Vice President,

Mortgage Loan Officer,

Small Business Lender

CRYSTAL R. YODER

Operations Officer

60        2013 Report to Shareholders  |  CSB Bancorp, Inc.

SHAREHOLDERS AND GENERAL INQUIRIES

Stock Listing Common Symbol: CSBB

CORPORATE OFFICE
91 North Clay Street, Millersburg, Ohio	330-674-9015 or 800-654-9015

If you have questions regarding your

CSB Bancorp, Inc. stock, please contact:

REGISTRAR AND TRANSFER COMPANY

Attn: Investor Relations

10 Commerce Drive

Cranford, New Jersey 07016

800-368-5948

www.rtco.com

PEGGY L. CONN

Corporate Secretary

CSB Bancorp, Inc.

91 North Clay Street

Millersburg, Ohio 44654

330-674-9015

800-654-9015

LEGAL COUNSEL

Vorys, Sater, Seymour and Pease LLP

52 East Gay Street

P.O. Box 1008

Columbus, Ohio 43216

If you are interested in purchasing shares of CSB Bancorp, Inc., you may contact your local broker or one of the following:

JAY MCCULLOCH

Investment Executive

CSB Investment Services

Located at:

The Commercial and Savings Bank

91 South Clay Street

P.O. Box 50

Millersburg, Ohio 44654

330-674-2397

800-654-9015

GEORGE GEISSBUHLER

Sweney Cartwright & Co.

17 South High Street, Suite 300 Columbus, Ohio 43215

800-334-7481

NICOLAS “NICK” P. BICKING

Boenning & Scattergood

9916 Brewster Lane

Powell, Ohio 43065

866-326-8113

The annual meeting of shareholders is currently scheduled to be held on Wednesday, April 23, 2014 at 7:00 p.m. at the Carlisle Inn in Walnut Creek, Ohio.

CSB Bancorp, Inc. is required to file an annual report on Form 10-K annually with the Securities and Exchange Commission. A copy of our Annual Report on Form 10-K is made available through our website after it is filed with the SEC. Copies of the Form 10-K Annual Report and the Company’s quarterly reports will be furnished, free of charge, to shareholders by written request to:

PAULA J. MEILER

Chief Financial Officer

CSB Bancorp, Inc.

91 North Clay Street

Millersburg, Ohio 44654

330-674-9015

800-654-9015

2013 Report to Shareholders  |  CSB Bancorp, Inc.        61

62        2013 Report to Shareholders  |  CSB Bancorp, Inc.

EX-21

EXHIBIT 21

SUBSIDIARIES OF CSB BANCORP, INC.

The Commercial and Savings Bank of Millersburg, Ohio, an Ohio-chartered commercial bank (100% owned).

CSB Investment Services, LLC, an Ohio limited liability company (100% owned).

EX-23.1

EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the Registration Statement No. 333-130082 on Form S-8 of CSB Bancorp, Inc. and in the Registration Statement on Form S-8 of The Commercial & Savings Bank 401(k) Retirement Plan of our report dated March 6, 2014, relating to our audit of the consolidated financial statements included in the Annual Report on Form 10-K of CSB Bancorp, Inc. for the year ended December 31, 2013.

/s/ S.R. Snodgrass P.C.

Wexford, Pennsylvania

March 25, 2014

EX-31.1

EXHIBIT 31.1

SECTION 302 CERTIFICATION

Chief Executive Officer

I, Eddie L. Steiner, certify that:

1 I have reviewed this annual report on Form 10-K of CSB Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a) Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 25, 2014

/s/ Eddie L. Steiner

Eddie L. Steiner

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

SECTION 302 CERTIFICATION

Senior Vice President and Chief Financial Officer

I, Paula J. Meiler, certify that:

1 I have reviewed this annual report on Form 10-K of CSB Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a) Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 25, 2014

/s/ Paula J. Meiler

Paula J. Meiler

Senior Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of CSB Bancorp, Inc. (the “Company”) on Form 10-K for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Eddie L. Steiner, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s /Eddie L. Steiner

Eddie L. Steiner

President and Chief Executive Officer

March 25, 2014

EX-32.2

EXHIBIT 32.2

Certification Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of CSB Bancorp, Inc. (the “Company”) on Form 10-K for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Paula J. Meiler, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Paula J. Meiler

Paula J. Meiler

Senior Vice President and Chief Financial Officer

March 25, 2014

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Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Summary of Actual Capital Amounts and Ratios of Company and Bank

The actual capital amounts and ratios of the Company and Bank as of December 31, are presented in the following tables:

						Minimum					Minimum Required
						Required For					To Be Well Capitalized
						Capital Adequacy					Under Prompt
	Actual					Purposes					Corrective Action
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
2013
Total capital (to risk-weighted assets)
Consolidated	$	53,268		13.6	%	$	31,416		8.0	%	$	39,270		10.0	%
Bank		52,458		13.4			31,392		8.0			39,240		10.0
Tier I capital (to risk-weighted assets)
Consolidated		48,357		12.3			15,708		4.0			23,562		6.0
Bank		47,558		12.1			15,696		4.0			23,544		6.0
Tier I capital (to average assets)
Consolidated		48,357		8.2			23,550		4.0			29,438		5.0
Bank		47,558		8.1			23,544		4.0			29,430		5.0
2012
Total capital (to risk-weighted assets)
Consolidated	$	49,534		13.3	%	$	29,707		8.0	%	$	37,134		10.0	%
Bank		48,940		13.2			29,695		8.0			37,118		10.0
Tier I capital (to risk-weighted assets)
Consolidated		44,946		12.1			14,854		4.0			22,280		6.0
Bank		44,352		12.0			14,847		4.0			22,271		6.0
Tier I capital (to average assets)
Consolidated		44,946		7.9			22,794		4.0			28,493		5.0
Bank		44,352		7.8			22,788		4.0			28,485		5.0

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Loans - Schedule of Allowances for Loan Losses by Portfolio Segment (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 4,580	$ 4,082	$ 4,031
Provision for loan losses	840	823	950
Charge-offs	(428)	(507)	(1,014)
Recoveries	93	182	115
Net charge-offs	(335)	(325)	(899)
Ending balance	5,085	4,580	4,082
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	933	1,024	1,179
Provision for loan losses	451	(78)	294
Charge-offs	(190)	(29)	(487)
Recoveries	25	16	38
Net charge-offs	(165)	(13)	(449)
Ending balance	1,219	933	1,024
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1,902	1,673	1,183
Provision for loan losses	78	512	558
Charge-offs	(108)	(283)	(68)
Recoveries
Net charge-offs	(108)	(283)	(68)
Ending balance	1,872	1,902	1,673
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1,096	894	1,057
Provision for loan losses	173	206	115
Charge-offs	(82)	(106)	(297)
Recoveries	18	102	19
Net charge-offs	(64)	(4)	(278)
Ending balance	1,205	1,096	894
Construction & Land Development [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	253	180	213
Provision for loan losses	(75)	73	8
Charge-offs			(41)
Recoveries
Net charge-offs			(41)
Ending balance	178	253	180
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	76	78	80
Provision for loan losses	13	23	61
Charge-offs	(48)	(89)	(121)
Recoveries	50	64	58
Net charge-offs	2	(25)	(63)
Ending balance	91	76	78
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	320	233	319
Provision for loan losses	200	87	(86)
Charge-offs
Recoveries
Net charge-offs
Ending balance	$ 520	$ 320	$ 233

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Securities - Summary of Amortized Cost and Fair Value of Securities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Available-for-sale:
Due in one year or less, Amortized Cost	$ 855
Due after one through five years, Amortized Cost	17,354
Due after five through ten years, Amortized Cost	22,455
Due after ten years, Amortized Cost	61,483
Total debt securities available-for-sale, Amortized Cost	102,147
Due in one year or less, Fair Value	875
Due after one through five years, Fair Value	17,500
Due after five through ten years, Fair Value	22,033
Due after ten years, Fair Value	61,186
Total debt securities available-for-sale, Fair Value	101,594
Held-to-maturity:
Due in one year or less, Amortized Cost
Due after one through five years, Amortized Cost
Due after five through ten years, Amortized Cost	7,717
Due after ten years, Amortized Cost	36,633
Total debt securities held-to-maturity, Amortized Cost	44,350
Due in one year or less, Fair Value
Due after one through five years, Fair Value
Due after five through ten years, Fair Value	7,568
Due after ten years, Fair Value	35,075
Fair Value, Held to maturity	$ 42,643

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Borrowings - Concerning of Other Borrowings (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Other borrowings	$ 12,459	$ 12,672
Fixed Rate Borrowing [Member]
Debt Instrument [Line Items]
Maturity Date Range, From	Oct. 02, 2014
Maturity Date Range, To	Dec. 21, 2017
Weighted Average Interest Rate	3.62%
Stated Interest Rate Range, From	3.48%
Stated Interest Rate Range, To	3.73%
Other borrowings	12,000	12,000
Fixed Rate Amortizing Borrowing [Member]
Debt Instrument [Line Items]
Maturity Date Range, From	Jan. 01, 2014
Maturity Date Range, To	Mar. 01, 2017
Weighted Average Interest Rate	5.99%
Stated Interest Rate Range, From	4.80%
Stated Interest Rate Range, To	7.15%
Other borrowings	$ 459	$ 672

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Loans - Allowances for Loan Losses and Ending Balances by Portfolio Segment and Based on Impairment Method (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$ 784	$ 779	$ 522
Collectively evaluated for impairment	4,301	3,801
Total ending allowance balance	5,085	4,580	4,082	4,031
Loans:
Loans individually evaluated for impairment	10,640	10,191
Loans collectively evaluated for impairment	368,242	354,150
Total ending loans balance	378,882	364,341
Commercial [Member]
Ending allowance balances attributable to loans:
Individually evaluated for impairment	241	85
Collectively evaluated for impairment	978	848
Total ending allowance balance	1,219	933	1,024	1,179
Loans:
Loans individually evaluated for impairment	5,576	4,315
Loans collectively evaluated for impairment	111,902	100,584
Total ending loans balance	117,478	104,899
Commercial Real Estate [Member]
Ending allowance balances attributable to loans:
Individually evaluated for impairment	331	522
Collectively evaluated for impairment	1,541	1,380
Total ending allowance balance	1,872	1,902	1,673	1,183
Loans:
Loans individually evaluated for impairment	3,220	4,573
Loans collectively evaluated for impairment	126,608	114,619
Total ending loans balance	129,828	119,192
Residential Real Estate [Member]
Ending allowance balances attributable to loans:
Individually evaluated for impairment	212	172
Collectively evaluated for impairment	993	924
Total ending allowance balance	1,205	1,096	894	1,057
Loans:
Loans individually evaluated for impairment	1,844	1,137
Loans collectively evaluated for impairment	109,601	109,275
Total ending loans balance	111,445	110,412
Construction & Land Development [Member]
Ending allowance balances attributable to loans:
Individually evaluated for impairment
Collectively evaluated for impairment	178	253
Total ending allowance balance	178	253	180	213
Loans:
Loans individually evaluated for impairment		166
Loans collectively evaluated for impairment	13,444	23,192
Total ending loans balance	13,444	23,358
Consumer [Member]
Ending allowance balances attributable to loans:
Individually evaluated for impairment
Collectively evaluated for impairment	91	76
Total ending allowance balance	91	76	78	80
Loans:
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	6,687	6,480
Total ending loans balance	6,687	6,480
Unallocated [Member]
Ending allowance balances attributable to loans:
Individually evaluated for impairment
Collectively evaluated for impairment	520	320
Total ending allowance balance	$ 520	$ 320	$ 233	$ 319

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Employee Benefits - Summary of Stock Options Activity (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Outstanding at beginning of year, shares	31,760	39,620	39,945
Granted, shares
Exercised, shares	(1,000)	(4,650)	0
Forfeited, shares		(3,210)	(325)
Outstanding at end of year, shares	30,760	31,760	39,620
Options exercisable at year-end, shares	30,760	31,760	39,620
Outstanding at beginning of year, Weighted Average Exercise Price	$ 17.85	$ 17.49	$ 17.48
Granted, Weighted Average Exercise Price
Exercised, Weighted Average Exercise Price	$ (16.10)	$ (16.05)
Forfeited, Weighted Average Exercise Price		$ (16.06)	$ (16.05)
Outstanding at end of year, Weighted Average Exercise Price	$ 17.90	$ 17.85	$ 17.49
Options exercisable at year-end, Weighted Average Exercise Price	$ 17.90	$ 17.85	$ 17.49
Weighted-average fair value of options granted during year, Weighted Average Exercise Price

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Summary of Significant Accounting Policies - Computation of Weighted Average Number of Common Shares Outstanding for Basic and Diluted Earnings Per Share (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Weighted Average Number Of Shares Outstanding [Abstract]
Weighted average common shares	2,980,602	2,980,602	2,980,602
Average treasury shares	(244,129)	(245,713)	(245,803)
Total weighted average common shares outstanding (basic)	2,736,473	2,734,889	2,734,799
Dilutive effect of assumed exercise of stock options	2,004	252	39
Weighted average common shares outstanding (diluted)	2,738,477	2,735,141	2,734,838

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Interest-Bearing Deposits (Tables)

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Summary of Interest - Bearing Deposits

Interest-bearing deposits at December 31 are as follows:

(Dollars in thousands)	2013		2012
Demand	$	76,327	$	74,429
Savings		149,937		138,794
Time deposits:
In excess of $100,000		42,562		54,163
Other		91,782		103,910
Total interest-bearing deposits	$	360,608	$	371,296

Stated Maturities of Time Deposits

At December 31, 2013, stated maturities of time deposits were as follows:

(Dollars in thousands)
2014	$	75,051
2015		25,282
2016		18,791
2017		8,271
2018		6,902
2019 and beyond		47
Total	$	134,344

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Employee Benefits - Summary of Options Outstanding (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding options, Weighted Average Remaining Contractual Life	2 years 2 months 1 day
Outstanding options, number	30,760	31,760	39,620	39,945
Exercisable Options, Weighted Average Exercise Price	$ 17.90	$ 17.85	$ 17.49	$ 17.48
15.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range Of Exercise Prices	$ 15.00
Outstanding options, Weighted Average Remaining Contractual Life	7 months 6 days
Outstanding options, number	1,000
Exercisable Options, Weighted Average Exercise Price	$ 15.00
18.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range Of Exercise Prices	$ 18.00
Outstanding options, Weighted Average Remaining Contractual Life	2 years 2 months 19 days
Outstanding options, number	29,760
Exercisable Options, Weighted Average Exercise Price	$ 18.00

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Income Taxes - Provision for Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Expense Benefit Continuing Operations [Abstract]
Current	$ 2,196	$ 2,040	$ 1,257
Deferred	77	(50)	345
Total income tax provision	$ 2,273	$ 1,990	$ 1,602

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Fair Value Measurements - Additional Information (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Fair Value Disclosures [Abstract]
Liabilities carried at fair value	$ 0	$ 0

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Loans - Schedule of Aging of Past Due and Nonaccrual Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 374,096	$ 359,799
30 - 59 Days Past Due	865	705
60 - 89 Days Past Due	651	500
90 Days + Past Due	1,036	131
Nonaccrual	2,234	3,206
Total Past Due and Nonaccrual	4,786	4,542
Total ending loans balance	378,882	364,341
Construction & land development [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	12,494	23,180
30 - 59 Days Past Due
60 - 89 Days Past Due		5
90 Days + Past Due	950
Nonaccrual		173
Total Past Due and Nonaccrual	950	178
Total ending loans balance	13,444	23,358
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	117,342	104,348
30 - 59 Days Past Due	15	60
60 - 89 Days Past Due	37	8
90 Days + Past Due
Nonaccrual	84	483
Total Past Due and Nonaccrual	136	551
Total ending loans balance	117,478	104,899
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	128,462	117,372
30 - 59 Days Past Due	111	41
60 - 89 Days Past Due	107	34
90 Days + Past Due	40
Nonaccrual	1,108	1,745
Total Past Due and Nonaccrual	1,366	1,820
Total ending loans balance	129,828	119,192
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	109,274	108,574
30 - 59 Days Past Due	616	472
60 - 89 Days Past Due	467	430
90 Days + Past Due	46	131
Nonaccrual	1,042	805
Total Past Due and Nonaccrual	2,171	1,838
Total ending loans balance	111,445	110,412
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	6,524	6,325
30 - 59 Days Past Due	123	132
60 - 89 Days Past Due	40	23
90 Days + Past Due
Nonaccrual
Total Past Due and Nonaccrual	163	155
Total ending loans balance	$ 6,687	$ 6,480

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Income Taxes - Tax Effects of Temporary Differences of Deferred Tax Assets and Deferred Tax Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Components Of Deferred Tax Assets And Liabilities [Abstract]
Allowance for loan losses	$ 1,887	$ 1,470
Net operating loss carryforward	470	598
Capital loss carryforward	35	35
Unrealized loss on securities available-for-sale	750
Other	37	109
Deferred tax assets, Gross	3,179	2,212
Valuation allowance on deferred tax assets	(35)	(35)
Deferred tax assets	3,144	2,177
Premises and equipment	(443)	(399)
Federal Home Loan Bank stock dividends	(736)	(736)
Deferred loan fees	(226)	(173)
Unrealized gain on securities available-for-sale		(960)
Prepaid expenses	(120)	(120)
Other	(462)	(265)
Deferred tax liabilities	(1,987)	(2,653)
Net deferred tax asset (liability)	$ 1,157	$ (476)

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Condensed Parent Company Financial Information - Summary of Condensed Financial Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
ASSETS
Cash deposited with subsidiary bank	$ 15,777	$ 21,485
Securities available-for-sale	101,722	129,291
TOTAL ASSETS	596,465	586,900
LIABILITIES AND SHAREHOLDERS' EQUITY
Total liabilities	544,054	534,447
Total shareholders' equity	52,411	52,453	49,429	47,154
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	596,465	586,900
Parent Company [Member]
ASSETS
Cash deposited with subsidiary bank	598	388
Investment in subsidiary bank	51,596	51,858
Securities available-for-sale	128	69
Other assets	192	207
TOTAL ASSETS	52,514	52,522
LIABILITIES AND SHAREHOLDERS' EQUITY
Total liabilities	103	69
Total shareholders' equity	52,411	52,453
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 52,514	$ 52,522

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Financial Instruments with Off-Balance Sheet Risk - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2013
Offsetting [Abstract]
Letters of credit expiry year	2014

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Condensed Parent Company Financial Information - Summary Condensed Statements of Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income before income taxes									$ 7,513	$ 6,537	$ 5,289
Income tax benefit									2,273	1,990	1,602
NET INCOME	1,224	1,407	1,247	1,362	1,120	1,231	1,141	1,055	5,240	4,547	3,687
COMPREHENSIVE INCOME									1,920	4,981	4,244
Parent Company [Member]
Interest on securities									2	2	1
Dividends from subsidiary									2,400	2,000	2,300
Total income									2,402	2,002	2,301
Operating expenses									356	354	336
Income before income taxes									2,046	1,648	1,965
Income tax benefit									(121)	(120)	(115)
Equity earnings in subsidiary, net of dividends									3,073	2,779	1,607
NET INCOME									5,240	4,547	3,687
COMPREHENSIVE INCOME									$ 1,920	$ 4,981	$ 4,244

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Employee Benefits - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Profit sharing contribution	2.75%	2.50%	2.50%
Company match of participant contributions	50.00%
Maximum annual compensation contribution	2.00%
Expense under plan	$ 284	$ 270	$ 242
Stock options granted
Total intrinsic value of stock options and outstanding	34	4
Total intrinsic value of exercisable stock options	$ 34	$ 4
Stock options exercised	1,000	4,650	0
Stock options vested	0	0

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Borrowings - Schedule of Maturities Other Borrowings (Detail) (Other Borrowings [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Other Borrowings [Member]
Debt Instrument [Line Items]
2014	$ 2,190
2015	169
2016	97
2017	10,003
Long term Debt, Total	$ 12,459
Weighted Average Interest Rate, 2014	3.91%
Weighted Average Interest Rate, 2015	6.01%
Weighted Average Interest Rate, 2016	5.84%
Weighted Average Interest Rate, 2017	3.61%
Total	3.71%

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Contingent Liabilities

12 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Contingent Liabilities

NOTE 17 - CONTINGENT LIABILITIES

In the normal course of business, the Company is subject to pending and threatened legal actions. Although, the Company is not able to predict the outcome of such actions, after reviewing pending and threatened actions, management believes that the outcome of any or all such actions will not have a material adverse effect on the results of operations or shareholders’ equity of the Company.

The Company has an employment agreement with an officer. Upon the occurrence of certain types of termination of employment, the Company may be required to make specified severance payments if termination occurs within a specified period of time, generally two years from the date of the agreement, or pursuant to certain change in control transactions.

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Securities - Summary of Proceeds and Gains and Losses from Sales of Available-for-Sale Securities (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2011
Amortized Cost And Fair Value Debt Securities [Abstract]
Proceeds	$ 4,309	$ 3,244
Realized gains	159	237
Realized losses
Impairment losses
Net securities gains	$ 159	$ 237

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Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Investments All Other Investments [Abstract]

Schedule of Estimated Fair Values of Recognized Financial Instruments

The estimated fair values of recognized financial instruments as of December 31 are as follows:

	2013
	Carrying								Total Fair
(Dollars in thousands)	Value		Level I		Level II		Level III		Value
Financial assets:
Cash and cash equivalents	$	42,599	$	42,599	$	—	$	—	$	42,599
Securities available-for-sale		101,722		1,125		100,597		—		101,722
Securities held-to-maturity		44,350		—		42,643		—		42,643
Restricted stock		5,463		—		5,463		—		5,463
Net loans		374,040		—		—		375,055		375,055
Bank-owned life insurance		9,551		9,551		—		—		9,551
Accrued interest receivable		1,374		1,374		—		—		1,374
Financial liabilities:
Deposits	$	480,933	$	346,589	$	—	$	135,106	$	481,695
Short-term borrowings		48,671		48,671		—		—		48,671
Other borrowings		12,459		—		—		12,559		12,559
Accrued interest payable		96		96		—		—		96

	2012
	Carrying								Total Fair
(Dollars in thousands)	Value		Level I		Level II		Level III		Value
Financial assets:
Cash and cash equivalents	$	66,878	$	66,878	$	—	$	—	$	66,878
Securities available-for-sale		129,291		169		129,122		—		129,291
Restricted stock		5,463		—		5,463		—		5,463
Net loans		360,000		—		—		367,028		367,028
Bank-owned life insurance		8,298		8,298		—		—		8,298
Accrued interest receivable		1,317		1,317		—		—		1,317
Financial liabilities:
Deposits	$	475,443	$	317,369	$	—	$	159,573	$	476,942
Short-term borrowings		43,992		43,992		—		—		43,992
Other borrowings		12,672		—		—		13,772		13,772
Accrued interest payable		135		135		—		—		135

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Income Taxes - Income Tax Provision Attributable to Income from Operations (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract]
Expected provision using statutory federal income tax rate	$ 2,554	$ 2,223	$ 1,798
Tax-exempt income on state and municipal securities and political subdivision loans	(203)	(269)	(169)
Interest expense associated with carrying certain state and municipal securities and political subdivision loans	6	6	8
Tax-exempt income on bank owned life insurance	(86)	(78)	(36)
Other	2	108	1
Total income tax provision	$ 2,273	$ 1,990	$ 1,602

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Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Data (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Information Disclosure [Abstract]
Interest Income	$ 5,430	$ 5,235	$ 5,173	$ 5,300	$ 5,153	$ 5,148	$ 5,151	$ 5,132	$ 21,138	$ 20,584	$ 20,018
Net Interest Income	4,922	4,677	4,592	4,692	4,470	4,426	4,397	4,313	18,883	17,606	16,340
Net income	$ 1,224	$ 1,407	$ 1,247	$ 1,362	$ 1,120	$ 1,231	$ 1,141	$ 1,055	$ 5,240	$ 4,547	$ 3,687
Basic Earnings Per Share	$ 0.45	$ 0.51	$ 0.45	$ 0.50	$ 0.41	$ 0.45	$ 0.41	$ 0.39	$ 1.91	$ 1.66	$ 1.35
Diluted Earnings Per Share	$ 0.45	$ 0.51	$ 0.45	$ 0.50	$ 0.41	$ 0.45	$ 0.41	$ 0.39	$ 1.91	$ 1.66	$ 1.35

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Financial Instruments with Off-Balance Sheet Risk (Tables)

12 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Summary of Financial Instruments whose Contract Amount Represents Credit Risk

The following financial instruments whose contract amount represents credit risk were outstanding at December 31:

(Dollars in thousands)	2013		2012
Commitments to extend credit	$	119,571	$	105,829
Letters of credit	$	679	$	1,539

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Loans - Summary of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	$ 378,882	$ 364,341
Deferred loan costs	243	239
Total loans	379,125	364,580
Construction & land development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	13,444	23,358
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	117,478	104,899
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	129,828	119,192
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	111,445	110,412
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	$ 6,687	$ 6,480

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Interest-Bearing Deposits - Summary of Interest - Bearing Deposits (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Time deposits:
Total interest-bearing deposits	$ 360,608	$ 371,296
Interest-bearing Deposits [Member]
Interest Bearing Deposits [Line Items]
Demand	76,327	74,429
Savings	149,937	138,794
Time deposits:
In excess of $100,000	42,562	54,163
Other	91,782	103,910
Total interest-bearing deposits	$ 360,608	$ 371,296

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Premises And Equipment - Components of Premises and Equipments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 18,732	$ 17,934
Accumulated depreciation	10,042	9,459
Premises and equipment, net	8,690	8,475
Land and Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	1,489	1,489
Buildings and Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	9,656	9,422
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	7,327	6,763
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 260	$ 260

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Securities - Summary of Securities Available-for-Sale and Restricted Stock (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses		$ 132
Amortized Cost, Held to maturity	44,350
Gross Unrealized Gains
Gross Unrealized Losses	1,707
Fair Value, Held to maturity	42,643
Equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Equity	106	69
Gross Unrealized Gains	23	9
Gross Unrealized Losses	1	9
Fair Value, Equity	128	69
U.S. Treasury security [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt	1,005	100
Gross Unrealized Gains
Gross Unrealized Losses	8
Fair Value, Debt	997	100
U.S. Government agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt	22,999	35,996
Gross Unrealized Gains	8	27
Gross Unrealized Losses	706	43
Fair Value, Debt	22,301	35,980
Amortized Cost, Held to maturity	19,186
Gross Unrealized Gains
Gross Unrealized Losses	828
Fair Value, Held to maturity	18,358
Mortgage-Backed Securities of Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt	54,455	66,588
Gross Unrealized Gains	536	2,107
Gross Unrealized Losses	691
Fair Value, Debt	54,300	68,695
Amortized Cost, Held to maturity	25,164
Gross Unrealized Gains
Gross Unrealized Losses	879
Fair Value, Held to maturity	24,285
Other Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt	230	345
Gross Unrealized Gains	5
Gross Unrealized Losses		1
Fair Value, Debt	235	344
Asset-backed securities of government agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt	2,739	2,862
Gross Unrealized Gains	36
Gross Unrealized Losses		39
Fair Value, Debt	2,775	2,823
State and political subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt	16,219	16,194
Gross Unrealized Gains	371	701
Gross Unrealized Losses	143	12
Fair Value, Debt	16,447	16,883
Corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt	4,500	4,313
Gross Unrealized Gains	44	112
Gross Unrealized Losses	5	28
Fair Value, Debt	4,539	4,397
Total Available-for-Sale [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt	102,253	126,467
Gross Unrealized Gains	1,023	2,956
Gross Unrealized Losses	1,554	132
Fair Value, Debt	101,722	129,291
Restricted Stock, Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt	5,463	5,463
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value, Debt	5,463	5,463
Total Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Debt	152,066	131,930
Gross Unrealized Gains	1,023	2,956
Gross Unrealized Losses	3,261	132
Fair Value, Debt	$ 149,828	$ 134,754

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CSB Bancorp, Inc. (the “Company” or “CSB”) was incorporated in 1991 in the State of Ohio, and is a registered bank holding company. The Company’s wholly-owned subsidiaries are The Commercial and Savings Bank of Millersburg, Ohio (the “Bank”) and CSB Investment Services, LLC., inactive. The Company, through its subsidiaries, operates in one industry segment; the commercial banking industry.

The Bank, an Ohio-chartered bank organized in 1879, provides financial services through its sixteen Banking Centers located in Holmes, Tuscarawas, Wayne and Stark Counties in Ohio and nearby communities. These communities are the source of substantially all deposit, loan and trust activities. The majority of the Bank’s income is derived from commercial and retail lending activities and investments in securities. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential real estate, commercial real estate, commercial and installment loans. Substantially, all loans are secured by specific items of collateral including business assets, consumer assets and real estate. Commercial loans are expected to be repaid from cash flow from business operations. Real estate loans are secured by both residential and commercial real estate.

Significant accounting policies followed by the Company are presented below:

USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS

In preparing Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Balance Sheets and reported amounts of revenues and expenses during each reporting period. Actual results could differ from those estimates. The most significant estimates susceptible to change in the near term relate to management’s determination of the allowance for loan losses and the fair value of financial instruments.

PRINCIPLES OF CONSOLIDATION

The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation.

The Bank has established a trust department and the assets held by the Bank in fiduciary or agency capacities for its customers are not included in the Consolidated Balance Sheets as such items are not assets of the Bank.

CASH AND CASH EQUIVALENTS

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand and amounts due from banks which mature overnight or within ninety days.

CASH RESERVE REQUIREMENTS

The Bank is required by the Federal Reserve to maintain reserves consisting of cash on hand and noninterest-earning balances on deposit with the Federal Reserve Bank. There was no required reserve balance at December 31, 2013 and 2012.

SECURITIES

Securities designated as available-for-sale are carried at fair value with unrealized gains and losses on such securities, net of applicable income taxes, recognized as other comprehensive income (loss). During 2013, approximately $39 million par value U.S. Government agencies and mortgage-backed securities of government agencies were transferred from available-for-sale to held-to-maturity. At year end, 28% of the total investment portfolio was classified as held-to-maturity. The volatility in interest rates that has occurred recently does not have as much impact on other comprehensive income as if the entire portfolio was included in the available-for-sale category. The held-to-maturity securities are carried at their fair value on the date of transfer or at purchase value if security purchases are designated as held-to-maturity.

The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity based on the interest method. Such amortization and accretion is included in interest and dividends on securities.

Gains and losses on sales of securities are accounted for on a trade date basis, using the specific identification method, and are included in noninterest income. Securities are periodically reviewed for other-than-temporary impairment based upon a number of factors, including, but not limited to, the length of time and extent to which the market value has been less than cost, the financial condition of the underlying issuer, the receipt of principal and interest according to the contractual terms, the ability of the issuer to meet contractual obligations, the likelihood of the security’s ability to recover any decline in its market value and management’s intent and ability to hold the security for a period of time sufficient to allow for a recovery in market value. Among the factors that are considered in determining management’s intent and ability to hold the security is a review of the Company’s capital adequacy, interest rate risk position and liquidity.

The assessment of a security’s ability to recover any decline in market value, the ability of the issuer to meet contractual obligations and management’s intent and ability to hold the security requires considerable judgment. A decline in value that is considered to be other-than-temporary is recorded as a loss within non-interest income in the Consolidated Statements of Income.

Investments in Federal Home Loan Bank of Cincinnati (“FHLB”) and Federal Reserve Bank stock are classified as restricted stock, carried at cost, and evaluated for impairment. The Bank is required to maintain an investment in common stock of the FHLB and Federal Reserve Bank because the Bank is a member of the FHLB and the Federal Reserve System. We consider these stocks to be nonmarketable equity securities.

Federal Home Loan Bank of Cincinnati reported profits for 2013 and 2012, remains in compliance with regulatory capital and liquidity requirements, continues to pay dividends on the stock and redeems its stock at par value. With consideration given to these factors, management concluded that the stock was not impaired at December 31, 2013 or 2012.

LOANS

Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, generally are stated at their outstanding principal amount, adjusted for charge-offs, the allowance for loan losses and any deferred loan fees or costs on originated loans. Interest is accrued based upon the daily outstanding principal balance. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield over the life of the related loan.

Interest income is not reported when full repayment is in doubt, typically when the loan is impaired or payments are past due over 90 days. All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

At origination, a determination is made whether a loan will be held in the Bank’s portfolio or is intended for sale in the secondary market. Mortgage loans held for sale are recorded at the lower of the aggregate cost or fair value. Generally these loans are held for sale for less than three days. The Bank includes gains and losses on sales of the loans held for sale when the sale is completed.

ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect borrowers’ ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate, and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment disclosures.

OTHER REAL ESTATE OWNED

Other real estate acquired through or in lieu of foreclosure is initially recorded at fair value, less estimated costs to sell, and any loan balance in excess of fair value is charged to the allowance for loan losses. Subsequent valuations are periodically performed and write-downs are included in other operating expense, as are gains or losses upon sale and expenses related to maintenance of the properties. Other real estate owned amounted to $0 and $25 thousand at December 31, 2013 and 2012, respectively.

PREMISES AND EQUIPMENT

Premises and equipment is stated at cost less accumulated depreciation and amortization. Upon the sale or disposition of the assets, the difference between the depreciated cost and proceeds is charged or credited to income. Depreciation and amortization is determined based on the estimated useful lives of the individual assets (typically 20 to 40 years for buildings and 3 to 10 years for equipment) and is computed using the straight-line method.

GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS

Goodwill is not amortized, but is tested at least annually for impairment in the fourth quarter or more frequently if indicators of impairment are present. The evaluation for impairment involves comparing the estimated current fair value of the reporting unit to its carrying value, including goodwill. If the estimated current fair value of a reporting unit exceeds its carrying value, no additional testing is required and an impairment loss is not recorded. CSB uses market capitalization and multiples of tangible book value methods to determine the estimated current fair value of its reporting unit. Based on this analysis no impairment was recorded in 2013 or 2012.

The core deposit intangible assets are assigned useful lives, which are amortized on an accelerated basis over their weighted average lives. The Company periodically reviews the intangible asset for impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.

MORTGAGE SERVICING RIGHTS

Mortgage servicing rights (“MSRs”) represent the right to service loans for third party investors. MSRs are recognized as a separate asset upon the sale of mortgage loans to a third party investor with the servicing rights retained by CSB. Originated MSRs are recorded at allocated fair value at the time of the sale of the loans to the third party investor. MSRs are amortized in proportion to and over the estimated period of net servicing income. MSRs are carried at amortized cost, less a valuation allowance for impairment, if any. MSRs are evaluated on a discounted earnings basis to determine the present value of future earnings of the underlying serviced mortgages. All assumptions are reviewed annually or more frequently, if necessary, and adjusted to reflect current and anticipated market conditions.

BANK-OWNED LIFE INSURANCE

The cash surrender value of these policies is included as an asset on the Consolidated Balance Sheets and any increases in the cash surrender value are recorded as noninterest income on the Consolidated Statements of Income. In the event of the death of an insured individual under these policies, the Company would receive a death benefit, which would be recorded as noninterest income.

REPURCHASE AGREEMENTS

Substantially all securities sold under repurchase agreements represent amounts advanced by various customers. Securities owned by the Bank are pledged to cover those obligations. These repurchase agreements are not deposits and are not covered by federal deposit insurance.

ADVERTISING COSTS

All advertising costs are expensed as incurred. Advertising expenses amounted to $175 thousand, $190 thousand and $175 thousand for the years ended 2013, 2012 and 2011 respectively.

FEDERAL INCOME TAXES

The Company and its subsidiaries file a consolidated tax return. Deferred income taxes are provided on temporary differences between financial statement and income tax reporting. Temporary differences are differences between the amounts of assets and liabilities reported for financial statement purposes and their tax bases. Deferred tax assets are recognized for temporary differences that will be deductible in future years’ tax returns and for operating loss and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax liabilities are recognized for temporary differences that will be taxable in future years’ tax returns.

The Bank, domiciled in Ohio, is not currently subject to state and local income taxes.

STOCK-BASED COMPENSATION

The Company sponsored a stock-based compensation plan, administered by a committee. The incentive stock option plan expired in 2012. The Company recorded no stock-based compensation expense for 2013, 2012 or 2011. There was no income tax benefit recognized in the accompanying Consolidated Statements of Income related to stock-based compensation in 2013, 2012 or 2011. Shares issued in connection with stock option exercises were issued from available treasury shares in 2013.

As of December 31, 2013, there was no unrecognized compensation cost related to unvested share-based compensation awards outstanding. All shares are vested.

The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the option and each vesting date. CSB estimates the fair value of stock options on the date of the grant using the Black-Scholes option pricing model. The model requires the use of numerous assumptions, many of which are highly subjective in nature. There were no option grants for the years ended December 31, 2013 and 2012.

COMPREHENSIVE INCOME

The Company includes recognized revenue, expenses, gains and losses in net income. Although certain changes in assets and liabilities such as unrealized gains and losses on available-for-sale securities are reported as a separate component of the equity section of the Consolidated Balance Sheets, these items along with net income are components of comprehensive income.

TRANSFERS OF FINANCIAL ASSETS

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

PER SHARE DATA

Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during each year. Diluted income per common share includes the dilutive effect of additional potential common shares issuable under stock options.

The weighted average number of common shares outstanding for basic and diluted earnings per share computations was as follows:

	2013			2012			2011
Weighted average common shares		2,980,602			2,980,602			2,980,602
Average treasury shares		(244,129	)		(245,713	)		(245,803	)
Total weighted average common shares outstanding (basic)		2,736,473			2,734,889			2,734,799
Dilutive effect of assumed exercise of stock options		2,004			252			39
Weighted average common shares outstanding (diluted)		2,738,477			2,735,141			2,734,838

Dividends per share are based on the number of shares outstanding at the declaration date.

There were no stock options that were antidilutive at December 31, 2013. Options to purchase an aggregate of 29,760 common shares at $18.00 per share were outstanding at December 31, 2012 and 2011 and were antidilutive.

ACCOUNTING DEVELOPMENTS

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The standard requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. The new requirements took effect for public companies in fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted this standard on January 1, 2013. The effect of adopting this standard increased our disclosure surrounding reclassification items out of accumulated other comprehensive income.

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

RECLASSIFICATION OF COMPARATIVE AMOUNTS

Certain comparative amounts from the prior years have been reclassified to conform to current year classifications. Such classifications had no effect on net income or shareholders’ equity.

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Premises and Equipments - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Property Plant And Equipment Useful Life And Values [Abstract]
Rental Expenses	$ 299	$ 298	$ 187
Depreciation	$ 625	$ 567	$ 530

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Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive (Loss) Income by Component Net of Tax

The following table presents the changes in accumulated other comprehensive (loss) income by component net of tax for the years ended December 31, 2013 and 2012.

(Dollars in thousands)	Pretax			Tax Effect			After-tax			Affected Line Item in the Consolidated Statements of Income
Balance as of December 31, 2012	$	2,823		$	(959	)	$	1,864
Unrealized holding loss on available-for-sale securities arising during the period		(3,195	)		1,086			(2,109	)
Amount reclassified for net gains included in net income		(159	)		54			(105	)	(a) (b)
Unrealized loss on securities transferred from available-for-sale to held-to-maturity		(1,931	)		657			(1,274	)
Amortization of held-to-maturity discount resulting from transfer		255			(87	)		168
Total other comprehensive loss		(5,030	)		1,710			(3,320	)
BALANCE AS OF DECEMBER 31, 2013	$	(2,207	)	$	751		$	(1,456	)
Balance as of December 31, 2011	$	2,166		$	(736	)	$	1,430
Unrealized holding gain on available-for-sale securities arising during the period		657			(223	)		434
Total other comprehensive income		657			(223	)		434
BALANCE AS OF DECEMBER 31, 2012	$	2,823		$	(959	)	$	1,864

(a) Securities gain, net.

(b) Federal income tax provision.

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Securities (Tables)

12 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

Summary of Securities Available-for-Sale and Restricted Stock

Securities consist of the following at December 31:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
2013
Available-for-sale:
U.S. Treasury security	$	1,005	$	—	$	8	$	997
U.S. Government agencies		22,999		8		706		22,301
Mortgage-backed securities of government agencies		54,455		536		691		54,300
Other mortgage-backed securities		230		5		—		235
Asset-backed securities of government agencies		2,739		36		—		2,775
State and political subdivisions		16,219		371		143		16,447
Corporate bonds		4,500		44		5		4,539
Equity securities		106		23		1		128
Total available-for-sale		102,253		1,023		1,554		101,722
Held-to-maturity securities
U.S. Government agencies		19,186		—		828		18,358
Mortgage-backed securities of government agencies		25,164		—		879		24,285
Total held-to-maturity		44,350		—		1,707		42,643
Restricted stock		5,463		—		—		5,463
Total securities	$	152,066	$	1,023	$	3,261	$	149,828
2012
Available-for-sale:
U.S. Treasury security	$	100	$	—	$	—	$	100
U.S. Government agencies		35,996		27		43		35,980
Mortgage-backed securities of government agencies		66,588		2,107		—		68,695
Other mortgage-backed securities		345		—		1		344
Asset-backed securities of government agencies		2,862		—		39		2,823
State and political subdivisions		16,194		701		12		16,883
Corporate bonds		4,313		112		28		4,397
Equity securities		69		9		9		69
Total available-for-sale		126,467		2,956		132		129,291
Restricted stock		5,463		—		—		5,463
Total securities	$	131,930	$	2,956	$	132	$	134,754

Summary of Amortized Cost and Fair Value of Securities

The amortized cost and fair value of securities at December 31, 2013, by contractual maturity, are shown below. 

(Dollars in thousands)	Amortized Cost		Fair Value
Available-for-sale:
Due in one year or less	$	855	$	875
Due after one through five years		17,354		17,500
Due after five through ten years		22,455		22,033
Due after ten years		61,483		61,186
Total debt securities available-for-sale	$	102,147	$	101,594
Held-to-maturity:
Due in one year or less	$	—	$	—
Due after one through five years		—		—
Due after five through ten years		7,717		7,568
Due after ten years		36,633		35,075
Total debt securities held-to-maturity	$	44,350	$	42,643

Summary of Proceeds and Gains and Losses from Sales of Available-for-Sale Securities

The following table shows the proceeds from sales of available-for-sale securities and the gross realized gains and losses on the sales of those securities that have been included in earnings as a result of the sales in 2013 and 2011.

(Dollars in thousands)	2013		2011
Proceeds	$	4,309	$	3,244
Realized gains	$	159	$	237
Realized losses		—		—
Impairment losses		—		—
Net securities gains	$	159	$	237

Summary of Gross Unrealized Losses and Fair Value of Available for Sale Securities

The following table presents gross unrealized losses and fair value of securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31:

	Securities in a Continuous Unrealized Loss Position
	Less Than 12 Months				12 Months Or More				Total
(Dollars in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
2013
Available-for-sale
U.S. Treasury security	$	8	$	997	$	—	$	—	$	8	$	997
U.S. Government agencies		590		15,409		116		1,884		706		17,293
Mortgage-backed securities of government agencies		691		29,938		—		—		691		29,938
State and political subdivisions		122		3,522		21		233		143		3,755
Corporate bonds		4		1,163		1		499		5		1,662
Equity securities		—		—		1		1		1		1
Held-to-maturity
U.S. Government agencies		771		14,559		57		1,799		828		16,358
Mortgage-backed securities of government agencies		879		20,149		—		—		879		20,149
Total temporarily impaired securities	$	3,065	$	85,737	$	196	$	4,416	$	3,261	$	90,153
2012
Available-for-sale
U.S. Government agencies	$	43	$	15,957	$	—	$	—	$	43	$	15,957
Other mortgage-backed securities		1		344		—		—		1		344
Asset-backed securities of government agencies		39		1,833		—		—		39		1,833
State and political subdivisions		12		1,737		—		—		12		1,737
Corporate bonds		4		366		24		975		28		1,341
Total debt securities		99		20,237		24		975		123		21,212
Equity securities		—		—		9		45		9		45
Total temporarily impaired securities	$	99	$	20,237	$	33	$	1,020	$	132	$	21,257

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Computation of Weighted Average Number of Common Shares Outstanding for Basic and Diluted Earnings Per Share

The weighted average number of common shares outstanding for basic and diluted earnings per share computations was as follows:

	2013			2012			2011
Weighted average common shares		2,980,602			2,980,602			2,980,602
Average treasury shares		(244,129	)		(245,713	)		(245,803	)
Total weighted average common shares outstanding (basic)		2,736,473			2,734,889			2,734,799
Dilutive effect of assumed exercise of stock options		2,004			252			39
Weighted average common shares outstanding (diluted)		2,738,477			2,735,141			2,734,838

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Loans - Schedule of Impairment by Class of Loans (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	$ 11,136	$ 10,617	$ 7,408
Recorded Investment With No Allowance	907	1,975
Recorded Investment With Allowance	9,748	8,235	7,263
Total Recorded Investment	10,655	10,210	7,263
Related Allowance	784	779	522
Average Recorded Investment	9,171	9,456	5,917
Interest Income Recognized	388	337	169
Construction & land development [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance		173
Recorded Investment With No Allowance		166
Recorded Investment With Allowance
Total Recorded Investment		166
Related Allowance
Average Recorded Investment	21	167
Interest Income Recognized	2
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	5,595	4,315	4,605
Recorded Investment With No Allowance	7
Recorded Investment With Allowance	5,580	4,329	4,605
Total Recorded Investment	5,587	4,329	4,605
Related Allowance	241	85	165
Average Recorded Investment	4,185	4,123	2,890
Interest Income Recognized	182	167	91
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	3,540	4,906	2,621
Recorded Investment With No Allowance	563	1,723
Recorded Investment With Allowance	2,658	2,849	2,476
Total Recorded Investment	3,221	4,572	2,476
Related Allowance	331	522	304
Average Recorded Investment	3,650	4,396	2,924
Interest Income Recognized	163	152	78
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	2,001	1,223	182
Recorded Investment With No Allowance	337	86
Recorded Investment With Allowance	1,510	1,057	182
Total Recorded Investment	1,847	1,143	182
Related Allowance	212	172	53
Average Recorded Investment	1,315	770	103
Interest Income Recognized	$ 41	$ 18

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Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Summary of Quarterly Financial Data

The following is a summary of selected quarterly financial data (unaudited) for the years ended December 31:

(Dollars in thousands, except per share data)	Interest Income		Net Interest Income		Net Income		Basic Earnings Per Share		Diluted Earnings Per Share
2013
First quarter	$	5,300	$	4,692	$	1,362	$	0.50	$	0.50
Second quarter		5,173		4,592		1,247		0.45		0.45
Third quarter		5,235		4,677		1,407		0.51		0.51
Fourth quarter		5,430		4,922		1,224		0.45		0.45
2012
First quarter	$	5,132	$	4,313	$	1,055	$	0.39	$	0.39
Second quarter		5,151		4,397		1,141		0.41		0.41
Third quarter		5,148		4,426		1,231		0.45		0.45
Fourth quarter		5,153		4,470		1,120		0.41		0.41

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Loans (Tables)

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Summary of Loans

Loans consist of the following at December 31:

(Dollars in thousands)	2013		2012
Commercial	$	117,478	$	104,899
Commercial real estate		129,828		119,192
Residential real estate		111,445		110,412
Construction & land development		13,444		23,358
Consumer		6,687		6,480
Total loans before deferred costs		378,882		364,341
Deferred loan costs		243		239
Total loans	$	379,125	$	364,580

Schedule of Allowances for Loan Losses by Portfolio Segment

The following table details activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2013, 2012 and 2011. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

(Dollars in thousands)	Commercial			Commercial Real Estate			Residential Real Estate			Construction & Land Development			Consumer			Unallocated			Total
December 31, 2013
Beginning balance	$	933		$	1,902		$	1,096		$	253		$	76		$	320		$	4,580
Provision for loan losses		451			78			173			(75	)		13			200			840
Charge-offs		(190	)		(108	)		(82	)		—			(48	)					(428	)
Recoveries		25			—			18			—			50						93
Net charge-offs		(165)			(108)			(64)			—			2						(335)
Ending balance	$	1,219		$	1,872		$	1,205		$	178		$	91		$	520		$	5,085
December 31, 2012
Beginning balance	$	1,024		$	1,673		$	894		$	180		$	78		$	233		$	4,082
Provision for loan losses		(78	)		512			206			73			23			87			823
Charge-offs		(29	)		(283	)		(106	)		—			(89	)					(507	)
Recoveries		16			—			102			—			64						182
Net charge-offs		(13)			(283)			(4)			—			(25)						(325)
Ending balance	$	933		$	1,902		$	1,096		$	253		$	76		$	320		$	4,580
December 31, 2011
Beginning balance	$	1,179		$	1,183		$	1,057		$	213		$	80		$	319		$	4,031
Provision for loan losses		294			558			115			8			61			(86	)		950
Charge-offs		(487	)		(68	)		(297	)		(41	)		(121	)					(1,014	)
Recoveries		38			—			19			—			58						115
Net charge-offs		(449)			(68)			(278)			(41)			(63)						(899)
Ending balance	$	1,024		$	1,673		$	894		$	180		$	78		$	233		$	4,082

Allowances for Loan Losses and Ending Balances by Portfolio Segment and Based on Impairment Method

The following table presents the balance in the allowance for loan losses and the ending loan balances by portfolio segment and impairment method as of December 31:

(Dollars in thousands)	Commercial		Commercial Real Estate		Residential Real  Estate		Construction & Land Development		Consumer		Unallocated		Total
2013
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$	241	$	331	$	212	$	—	$	—	$	—	$	784
Collectively evaluated for impairment		978		1,541		993		178		91		520		4,301
Total ending allowance balance	$	1,219	$	1,872	$	1,205	$	178	$	91	$	520	$	5,085
Loans:
Loans individually evaluated for impairment	$	5,576	$	3,220	$	1,844	$	—	$	—			$	10,640
Loans collectively evaluated for impairment		111,902		126,608		109,601		13,444		6,687				368,242
Total ending loans balance	$	117,478	$	129,828	$	111,445	$	13,444	$	6,687			$	378,882
2012
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$	85	$	522	$	172	$	—	$	—	$	—	$	779
Collectively evaluated for impairment		848		1,380		924		253		76		320		3,801
Total ending allowance balance	$	933	$	1,902	$	1,096	$	253	$	76	$	320	$	4,580
Loans:
Loans individually evaluated for impairment	$	4,315	$	4,573	$	1,137	$	166	$	—			$	10,191
Loans collectively evaluated for impairment		100,584		114,619		109,275		23,192		6,480				354,150
Total ending loans balance	$	104,899	$	119,192	$	110,412	$	23,358	$	6,480			$	364,341

Schedule of Impairment by Class of Loans

The following table presents loans individually evaluated for impairment by class of loans as of December 31:

(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
2013
Commercial	$	5,595	$	7	$	5,580	$	5,587	$	241	$	4,185	$	182
Commercial real estate		3,540		563		2,658		3,221		331		3,650		163
Residential real estate		2,001		337		1,510		1,847		212		1,315		41
Construction & land development		—		—		—		—		—		21		2
Total impaired loans	$	11,136	$	907	$	9,748	$	10,655	$	784	$	9,171	$	388
2012
Commercial	$	4,315	$	—	$	4,329	$	4,329	$	85	$	4,123	$	167
Commercial real estate		4,906		1,723		2,849		4,572		522		4,396		152
Residential real estate		1,223		86		1,057		1,143		172		770		18
Construction & land development		173		166		—		166		—		167		—
Total impaired loans	$	10,617	$	1,975	$	8,235	$	10,210	$	779	$	9,456	$	337
2011
Commercial	$	4,605	$	—	$	4,605	$	4,605	$	165	$	2,890	$	91
Commercial real estate		2,621		—		2,476		2,476		304		2,924		78
Residential real estate		182		—		182		182		53		103		—
Construction & land development		—		—		—		—		—		—		—
Total impaired loans	$	7,408	$	—	$	7,263	$	7,263	$	522	$	5,917	$	169

Schedule of Aging of Past Due and Nonaccrual Loans

The following table presents the aging of past due and nonaccrual loans by class of loans as of December 31:

(Dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days + Past Due		Nonaccrual		Total Past Due and Nonaccrual		Total Loans
2013
Commercial	$	117,342	$	15	$	37	$	—	$	84	$	136	$	117,478
Commercial real estate		128,462		111		107		40		1,108		1,366		129,828
Residential real estate		109,274		616		467		46		1,042		2,171		111,445
Construction & land development		12,494		—		—		950		—		950		13,444
Consumer		6,524		123		40		—		—		163		6,687
Total loans	$	374,096	$	865	$	651	$	1,036	$	2,234	$	4,786	$	378,882
2012
Commercial	$	104,348	$	60	$	8	$	—	$	483	$	551	$	104,899
Commercial real estate		117,372		41		34		—		1,745		1,820		119,192
Residential real estate		108,574		472		430		131		805		1,838		110,412
Construction & land development		23,180		—		5		—		173		178		23,358
Consumer		6,325		132		23		—		—		155		6,480
Total loans	$	359,799	$	705	$	500	$	131	$	3,206	$	4,542	$	364,341

Summary of Troubled Debt Restructurings

Loan modifications that are considered TDRs completed during the year ended December 31:

(Dollars in thousands)	Number Of Loans Restructured		Pre-Modification Recorded Investment		Post-Modification Recorded Investment
2013
Commercial		3	$	83	$	83
Residential real estate		3		264		264
Total restructured loans		6	$	347	$	347
2012
Commercial real estate		2	$	177	$	177
Residential real estate		9		798		798
Total restructured loans		11	$	975	$	975

Summary of Loans by Credit Quality Indicator

Based on the most recent analysis performed, the risk category of loans by class is as follows at December 31:

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
2013
Commercial	$	101,195	$	10,352	$	5,066	$	—	$	865	$	117,478
Commercial real estate		115,265		9,076		4,041		—		1,446		129,828
Residential real estate		237		—		47		—		111,161		111,445
Construction & land development		9,470		587		1,884		—		1,503		13,444
Consumer		—		—		—		—		6,687		6,687
Total	$	226,167	$	20,015	$	11,038	$	—	$	121,662	$	378,882
2012
Commercial	$	92,123	$	5,854	$	6,637	$	—	$	285	$	104,899
Commercial real estate		102,602		5,671		8,459		—		2,460		119,192
Residential real estate		200		—		53		—		110,159		110,412
Construction & land development		18,063		2,750		1,244		—		1,301		23,358
Consumer		—		—		—		—		6,480		6,480
Total	$	212,988	$	14,275	$	16,393	$	—	$	120,685	$	364,341

Schedule of Loans Not Rated by Class of Loans

The following table presents loans that are not rated, by class of loans as of December 31:

(Dollars in thousands)	Performing		Nonperforming		Total
2013
Commercial	$	865	$	—	$	865
Commercial real estate		1,446		—		1,446
Residential real estate		110,119		1,042		111,161
Construction & land development		1,503		—		1,503
Consumer		6,687		—		6,687
Total	$	120,620	$	1,042	$	121,662
2012
Commercial	$	285	$	—	$	285
Commercial real estate		2,460		—		2,460
Residential real estate		109,276		883		110,159
Construction & land development		1,294		7		1,301
Consumer		6,480		—		6,480
Total	$	119,795	$	890	$	120,685

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Components of Premises and Equipment

Premises and equipment consist of the following at December 31:

(Dollars in thousands)	2013		2012
Land and improvements	$	1,489	$	1,489
Buildings and improvements		9,656		9,422
Furniture and equipment		7,327		6,763
Leasehold improvements		260		260
		18,732		17,934
Accumulated depreciation		10,042		9,459
Premises and equipment, net	$	8,690	$	8,475

Summary of Future Minimum Lease Payments

Future minimum lease payments at December 31, 2013 were as follows:

(Dollars in thousands)
2014	$	299
2015		294
2016		172
2017		32
Total	$	797

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 5,240	$ 4,547	$ 3,687
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises, equipment and software	779	644	662
Deferred income taxes	77	(50)	345
Provision for loan losses	840	823	950
Gain on sale of loans, net	(347)	(591)	(219)
Securities gain, net	(159)		(237)
Security amortization, net of accretion	456	553	226
Secondary market loan sale proceeds	12,393	20,873	7,201
Originations of secondary market loans held-for-sale	(12,106)	(20,384)	(7,019)
Bank-owned life insurance	(253)	(230)	(107)
Effects of changes in operating assets and liabilities:
Net deferred loan (fees) costs	(214)	63	35
Accrued interest receivable	(57)	32	(134)
Accrued interest payable	(39)	(47)	(31)
Other assets and liabilities	339	831	415
Net cash provided by operating activities	6,949	7,064	5,774
Securities available-for-sale:
Proceeds from maturities and repayments, available-for-sale	36,200	76,220	45,332
Proceeds from repayments, held-to-maturity	1,211
Purchases, available-for-sale	(55,693)	(82,382)	(95,542)
Purchases, held-to-maturity	(8,135)
Proceeds from sale of securities, available-for-sale	4,309		3,244
Loan originations, net of repayments	(14,666)	(40,842)	(1,065)
Net cash from acquisition			60,872
Proceeds from sale of other real estate	18	26	883
Property, equipment and software acquisitions	(1,526)	(953)	(586)
Purchase of bank-owned life insurance	(1,000)	(5,000)
Net cash provided by (used in) investing activities	(39,282)	(52,931)	13,138
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits	5,550	32,021	15,648
Net change in short-term borrowings	4,679	6,919	5,055
Repayment of other borrowings	(213)	(6,489)	(3,748)
Cash dividends paid	(1,970)	(1,969)	(1,969)
Proceeds from stock options exercised	8	5
Net cash provided by financing activities	8,054	30,487	14,986
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(24,279)	(15,380)	33,898
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	66,878	82,258	48,360
CASH AND CASH EQUIVALENTS AT END OF YEAR	42,599	66,878	82,258
Cash paid during the year for:
Interest	2,356	3,155	3,769
Income taxes	2,335	1,690	1,525
Acquisition of noncash assets and liabilities:
Assets acquired			13,631
Liabilities assumed			74,503
Noncash investing activities:
Transfer of loans to other real estate owned		56	814
Transfer of securities from available-for-sale to held-to-maturity	$ 38,930

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Core Deposit Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Core Deposit Intangible and Related Accumulated Amortization

The following table shows the core deposit intangible and the related accumulated amortization as of December 31:

(Dollars in thousands)	2013			2012			2011
Gross carrying amount	$	1,251		$	1,251		$	1,251
Accumulated amortization		(492	)		(357	)		(217	)
Net carrying amount	$	759		$	894		$	1,034

Future Amortization Expense for Core Deposit Asset

The estimated aggregate future amortization expense for the core deposit assets remaining as of December 31, 2013 is as follows:

(Dollars in thousands)	Core Deposit Amortization
2014	$	129
2015		125
2016		121
2017		116
2018		101
Thereafter		167
	$	759

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Related-Party Transactions - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Related Party Transactions [Abstract]
Deposits from executive officers, directors and their related business interests	$ 10.4	$ 10.5

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Condensed Parent Company Financial Information (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Summary of Condensed Financial Information

A summary of condensed financial information of the parent company as of December 31, 2013 and 2012 and for each of the three years in the period ended December 31, 2013 follows:

(Dollars in thousands)	2013		2012
CONDENSED BALANCE SHEETS
ASSETS
Cash deposited with subsidiary bank	$	598	$	388
Investment in subsidiary bank		51,596		51,858
Securities available-for-sale		128		69
Other assets		192		207
TOTAL ASSETS	$	52,514	$	52,522
LIABILITIES AND SHAREHOLDERS’ EQUITY
Total liabilities	$	103	$	69
Total shareholders’ equity		52,411		52,453
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	52,514	$	52,522

Summary Condensed Statements of Income

(Dollars in thousands)	2013			2012			2011
CONDENSED STATEMENTS OF INCOME
Interest on securities	$	2		$	2		$	1
Dividends from subsidiary		2,400			2,000			2,300
Total income		2,402			2,002			2,301
Operating expenses		356			354			336
Income before taxes and undistributed equity income of subsidiary		2,046			1,648			1,965
Income tax benefit		(121	)		(120	)		(115	)
Equity earnings in subsidiary, net of dividends		3,073			2,779			1,607
NET INCOME	$	5,240		$	4,547		$	3,687
COMPREHENSIVE INCOME	$	1,920		$	4,981		$	4,244

Condensed Statements of Cash Flows

(Dollars in thousands)	2013			2012			2011
CONDENSED STATEMENTS OF CASH FLOWS
Cash flows from operating activities:
Net income	$	5,240		$	4,547		$	3,687
Adjustments to reconcile net income to cash provided by operations:
Equity earnings in subsidiary, net of dividends		(3,073	)		(2,779	)		(1,607	)
Change in other assets, liabilities		42			49			48
Net cash provided by operating activities		2,209			1,817			2,128
Cash flows from investing activities:
Purchase of investment securities		(37	)		—			—
Net cash used in investing activities		(37	)		—			—
Cash flows from financing activities:
Cash dividends paid		(1,970	)		(1,969	)		(1,969	)
Cash received from exercise of stock options		8			5			—
Net cash used in financing activities		(1,962	)		(1,964	)		(1,969	)
Increase (decrease) in cash		210			(147	)		159
Cash at beginning of year		388			535			376
Cash at end of year	$	598		$	388		$	535

XML

Loans - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013 SecurityLoan	Dec. 31, 2012 SecurityLoan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of outstanding principal balances of commercial real estate loans secured by owner-occupied properties	77.00%	81.00%
Concentrations of loans related to a single industry	$ 0	$ 0
Concentrations of loans related to a single industry, percentage	7.00%
Troubled debt restructurings, loans	8,600,000	8,700,000
Reserves allocated to customers whose loan terms are modified in troubled debt restructurings	583,000	718,000
Loans classified as troubled debt restructurings	7,800,000
Loans payable in nonaccrual of interest status	719,000
Loans restructured, subsequently defaulted		54,000
Number of loans restructured, subsequently defaulted	0	1
Outstanding balance of commercial loans classified under credit risk, minimum amount	275,000
Loans listed as not rated under risk category, maximum amount	275,000
Loans serviced for others	70,200,000	60,200,000
Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage servicing rights	225,000	214,000
Valuation allowance	0	0
Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage servicing rights	$ 56,900,000	$ 52,700,000

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Borrowings - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013
Equity Method Investments And Cost Method Investments [Abstract]
Principal curtailment is due on borrowings	10.00%
Additional borrowing capacity	$ 42.1

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Cash and cash equivalents
Cash and due from banks	$ 15,777	$ 21,485
Interest-earning deposits in other banks	26,822	45,393
Total cash and cash equivalents	42,599	66,878
Securities
Available-for-sale, at fair value	101,722	129,291
Held-to-maturity (fair value of $42,643)	44,350
Restricted stock, at cost	5,463	5,463
Total securities	151,535	134,754
Loans	379,125	364,580
Less allowance for loan losses	5,085	4,580
Net loans	374,040	360,000
Premises and equipment, net	8,690	8,475
Core deposit intangible	759	894
Goodwill	4,728	4,728
Bank-owned life insurance	9,551	8,298
Accrued interest receivable and other assets	4,563	2,873
TOTAL ASSETS	596,465	586,900
Deposits
Noninterest-bearing	120,325	104,147
Interest-bearing	360,608	371,296
Total deposits	480,933	475,443
Short-term borrowings	48,671	43,992
Other borrowings	12,459	12,672
Accrued interest payable and other liabilities	1,991	2,340
Total liabilities	544,054	534,447
SHAREHOLDERS' EQUITY
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares; outstanding 2,736,634 shares in 2013 and 2,736,060 in 2012	18,629	18,629
Additional paid-in capital	9,964	9,974
Retained earnings	30,232	26,962
Treasury stock at cost - 243,968 shares in 2013 and 244,542 in 2012	(4,958)	(4,976)
Accumulated other comprehensive (loss) income	(1,456)	1,864
Total shareholders' equity	52,411	52,453
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 596,465	$ 586,900

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013 Segment BankingCenters	Dec. 31, 2012	Dec. 31, 2011
Summary Of Significant Accounting Policies [Line Items]
Number of operating industry segment	1
Number of banking centers	16
Cash reserve requirement	$ 0	$ 0
Investment in FHLB, Impairment Charges	0	0
Loan held for sale maximum period	3 days
Amount of other real state owned	0	25,000
Impairment on goodwill	0	0
Advertising expenses	175,000	190,000	175,000
Stock-based compensation expenses	0	0	0
Income tax recognized related to stock based compensation	0	0	0
Unrecognized compensation cost related to unvested share-based compensation awards outstanding	0
Stock option granted
Number of stock option require to purchase common stock	0	29,760	29,760
Prior Period Reclassification Adjustment Effect	0
Held-to-maturity Securities [Member]
Summary Of Significant Accounting Policies [Line Items]
Total Investment portfolio classified as Held-to-maturity	28.00%
Equity Options [Member]
Summary Of Significant Accounting Policies [Line Items]
Common stock purchase price		$ 18.00	$ 18.00
U.S. government agency and U.S. agency mortgage-backed securities [Member]
Summary Of Significant Accounting Policies [Line Items]
securities transferred from Available-for-sale to Held-to-maturity	$ 39,000,000
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents, amounts due from banks and federal fund sold, maturity period	1 day
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents, amounts due from banks and federal fund sold, maturity period	90 days
Buildings [Member] | Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of individual assets	20 years
Buildings [Member] | Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of individual assets	40 years
Equipment [Member] | Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of individual assets	3 years
Equipment [Member] | Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of individual assets	10 years

XML

Contingent Liabilities - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2013
Commitments And Contingencies Disclosure [Abstract]
Period of termination	2 years

XML

Consolidated Statements of Changes In Shareholders' Equity (USD $) In Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning balance at Dec. 31, 2010	$ 47,154	$ 18,629	$ 9,994	$ 22,673	$ (5,015)	$ 873
Net income	3,687			3,687
Other comprehensive income	557					557
Cash dividends declared, $0.72 per share	(1,969)			(1,969)
Ending balance at Dec. 31, 2011	49,429	18,629	9,994	24,391	(5,015)	1,430
Net income	4,547			4,547
Other comprehensive income	434					434
Stock options exercised, 1,261 shares	12		(20)	(7)	39
Cash dividends declared, $0.72 per share	(1,969)			(1,969)
Ending balance at Dec. 31, 2012	52,453	18,629	9,974	26,962	(4,976)	1,864
Net income	5,240			5,240
Other comprehensive income	(3,320)					(3,320)
Stock options exercised, 1,261 shares	8		(10)		18
Cash dividends declared, $0.72 per share	(1,970)			(1,970)
Ending balance at Dec. 31, 2013	$ 52,411	$ 18,629	$ 9,964	$ 30,232	$ (4,958)	$ (1,456)

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Fair Values of Financial Instruments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value Disclosures [Abstract]
Commitments to extend credit and letters of credit	$ 120.3	$ 107.4

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Loans - Summary of Loans by Credit Quality Indicator (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 378,882	$ 364,341
Construction & land development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	13,444	23,358
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	117,478	104,899
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	129,828	119,192
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	111,445	110,412
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	6,687	6,480
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	226,167	212,988
Pass [Member] | Construction & land development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	9,470	18,063
Pass [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	101,195	92,123
Pass [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	115,265	102,602
Pass [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	237	200
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	20,015	14,275
Special Mention [Member] | Construction & land development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	587	2,750
Special Mention [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	10,352	5,854
Special Mention [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	9,076	5,671
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	11,038	16,393
Substandard [Member] | Construction & land development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,884	1,244
Substandard [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	5,066	6,637
Substandard [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	4,041	8,459
Substandard [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	47	53
Not Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	121,662	120,685
Not Rated [Member] | Construction & land development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,503	1,301
Not Rated [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	865	285
Not Rated [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,446	2,460
Not Rated [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	111,161	110,159
Not Rated [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 6,687	$ 6,480

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes consists of the following for the years ended December 31:

(Dollars in thousands)	2013		2012			2011
Current	$	2,196	$	2,040		$	1,257
Deferred		77		(50	)		345
Total income tax provision	$	2,273	$	1,990		$	1,602

Income Tax Provision Attributable to Income from Operations

The income tax provision attributable to income from operations differs from the amounts computed by applying the statutory federal income tax rate of 34% to income before income taxes as follows:

(Dollars in thousands)	2013			2012			2011
Expected provision using statutory federal income tax rate	$	2,554		$	2,223		$	1,798
Tax-exempt income on state and municipal securities and political subdivision loans		(203	)		(269	)		(169	)
Interest expense associated with carrying certain state and municipal securities and political subdivision loans		6			6			8
Tax-exempt income on bank owned life insurance		(86	)		(78	)		(36	)
Other		2			108			1
Total income tax provision	$	2,273		$	1,990		$	1,602

Tax Effects of Temporary Differences of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31 are as follows:

(Dollars in thousands)	2013			2012
Allowance for loan losses	$	1,887		$	1,470
Net operating loss carryforward		470			598
Capital loss carryforward		35			35
Unrealized loss on securities available-for-sale		750			—
Other		37			109
		3,179			2,212
Valuation allowance on deferred tax assets		(35)			(35)
Deferred tax assets		3,144			2,177
Premises and equipment		(443	)		(399	)
Federal Home Loan Bank stock dividends		(736	)		(736	)
Deferred loan fees		(226	)		(173	)
Unrealized gain on securities available-for-sale		—			(960	)
Prepaid expenses		(120	)		(120	)
Other		(462	)		(265	)
Deferred tax liabilities		(1,987	)		(2,653	)
Net deferred tax asset (liability)	$	1,157		$	(476	)

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Core Deposit Intangible Assets - Core Deposit Intangible and Related Accumulated Amortization (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Goodwill And Core Deposit Intangibles [Line Items]
Net carrying amount	$ 759
Core Deposits [Member]
Goodwill And Core Deposit Intangibles [Line Items]
Gross carrying amount	1,251	1,251	1,251
Accumulated amortization	(492)	(357)	(217)
Net carrying amount	$ 759	$ 894	$ 1,034

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Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 14 – FAIR VALUE MEASUREMENTS

The Company provides disclosures about assets and liabilities carried at fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs. The three broad levels of the fair value hierarchy are described below:

Level I: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

Level II: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by or other means including certified appraisals. If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability.

Level III: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The following table presents the assets reported on the consolidated statements of financial condition at their fair value as of December 31, 2013 and December 31, 2012, by level within the fair value hierarchy. No liabilities are carried at fair value. As required by the accounting standards, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Equity securities and U.S. Treasury Notes are valued at the closing price reported on the active market on which the individual securities are traded. Obligations of U.S. Government corporations and agencies, mortgage-backed securities, asset-backed securities and obligations of states and political subdivisions are valued at observable market data for similar assets.

(Dollars in thousands)	Level I		Level II		Level III		Total
	December 31, 2013
Assets:
Securities available-for-sale
U.S. Treasury security	$	997	$	—	$	—	$	997
U.S. Government agencies		—		22,301		—		22,301
Mortgage-backed securities of government agencies		—		54,535		—		54,535
Asset-backed securities of government agencies		—		2,775		—		2,775
State and political subdivisions		—		16,447		—		16,447
Corporate bonds		—		4,539		—		4,539
Total debt securities		997		100,597		—		101,594
Equity securities		128		—		—		128
Total available-for-sale securities	$	1,125	$	100,597	$	—	$	101,722
	December 31, 2012
Assets:
Securities available-for-sale
U.S. Treasury security	$	100	$	—	$	—	$	100
U.S. Government agencies		—		35,980		—		35,980
Mortgage-backed securities of government agencies		—		69,039		—		69,039
Asset-backed securities of government agencies		—		2,823		—		2,823
State and political subdivisions		—		16,883		—		16,883
Corporate bonds		—		4,397		—		4,397
Total debt securities		100		129,122		—		129,222
Equity securities		69		—		—		69
Total available-for-sale securities	$	169	$	129,122	$	—	$	129,291

The following table presents the assets measured on a nonrecurring basis on the consolidated balance sheets at their fair value as of December 31, 2013 and December 31, 2012, by level within the fair value hierarchy. Impaired loans and other real estate that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral securing the impaired loans include: quoted market prices for identical assets classified as Level I inputs; observable inputs, employed by certified appraisers, for similar assets classified as Level II inputs. In cases where valuation techniques included inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level III inputs.

The fair value of MSRs is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates discounted cash flow and repayment assumptions based on management’s best judgment. As a result, these rights are measured at fair value on a nonrecurring basis and are classified within Level III of the fair value hierarchy.

(Dollars in thousands)	Level I		Level II		Level III		Total
	December 31, 2013
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	9,856	$	9,856
Mortgage servicing rights		—		—		225		225
	December 31, 2012
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	9,412	$	9,412
Other real estate owned		—		—		25		25
Mortgage servicing rights		—		—		214		214

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level III inputs to determine fair value:

	Quantitative Information about Level III Fair Value  Measurements
(Dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
	December 31, 2013
Impaired loans	$	8,663	Discounted cash flow	Remaining term Discount rate	3 mos to 29 yrs / (62 mos) 7.1% to 12% / (7.5%)
		1,193	Appraisal of collateral1,3	Appraisal  adjustments2 Liquidation expense2	–20% to –25% –10%
Mortgage servicing rights		225	Discounted cash flow	Remaining term Discount rate	12 mos to 30 yrs / (244 mos) 1.5% / (1.5%)

	Quantitative Information about Level III Fair Value Measurements
(Dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
	December 31, 2012
Impaired loans	$	7,260	Discounted cash flow	Remaining term Discount rate	4 mos to 29 yrs / (74 mos) 7.5% to 12% / (7.8%)
		2,152	Appraisal of collateral1,3	Appraisal  adjustments2 Liquidation expense2	–20% to –35% –10%
Other real estate owned		25	Appraisal of collateral1,3	Management discount for property type3	0% to –67%
Mortgage servicing rights		214	Discounted cash flow	Remaining term Discount rate	24 mos to 30 yrs / (244 mos) 1.5% / (1.5%)

¹  Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various inputs which are not identifiable.

²  Appraisals may be adjusted by management for qualitative factors such as estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

³  Includes qualitative adjustments by management and estimated liquidation expenses.

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Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2013

Postemployment Benefits [Abstract]

Summary of Stock Options Activity

The following summarizes stock options activity for the years ended December 31:

	2013						2012						2011
	Shares			Weighted Average Exercise Price			Shares			Weighted Average Exercise Price			Shares			Weighted Average Exercise Price
Outstanding at beginning of year		31,760		$	17.85			39,620		$	17.49			39,945		$	17.48
Granted		—			—			—			—			—			—
Exercised		(1,000	)		(16.10	)		(4,650	)		(16.05	)		—			—
Forfeited		—						(3,210	)		(16.06	)		(325	)		(16.05	)
Outstanding at end of year		30,760			17.90			31,760			17.85			39,620			17.49
Options exercisable at year-end		30,760		$	17.90			31,760		$	17.85			39,620		$	17.49
Weighted-average fair value of options granted during year					N/A						N/A						N/A

Summary of Options Outstanding

Options outstanding at December 31, 2013 were as follows:

	Outstanding
Range Of Exercise Prices	Number		Weighted Average Remaining Contractual Life (Years)		Number		Weighted Average Exercise Price
$ 15.00		1,000		0.60		1,000	$	15.00
18.00		29,760		2.22		29,760		18.00
Outstanding at year-end		30,760		2.17		30,760	$	17.90

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Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Accumulated Other Comprehensive Income

NOTE 16 – ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents the changes in accumulated other comprehensive (loss) income by component net of tax for the years ended December 31, 2013 and 2012.

(Dollars in thousands)	Pretax			Tax Effect			After-tax			Affected Line Item in the Consolidated Statements of Income
Balance as of December 31, 2012	$	2,823		$	(959	)	$	1,864
Unrealized holding loss on available-for-sale securities arising during the period		(3,195	)		1,086			(2,109	)
Amount reclassified for net gains included in net income		(159	)		54			(105	)	(a) (b)
Unrealized loss on securities transferred from available-for-sale to held-to-maturity		(1,931	)		657			(1,274	)
Amortization of held-to-maturity discount resulting from transfer		255			(87	)		168
Total other comprehensive loss		(5,030	)		1,710			(3,320	)
BALANCE AS OF DECEMBER 31, 2013	$	(2,207	)	$	751		$	(1,456	)
Balance as of December 31, 2011	$	2,166		$	(736	)	$	1,430
Unrealized holding gain on available-for-sale securities arising during the period		657			(223	)		434
Total other comprehensive income		657			(223	)		434
BALANCE AS OF DECEMBER 31, 2012	$	2,823		$	(959	)	$	1,864

(a) Securities gain, net.

(b) Federal income tax provision.

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Interest-Bearing Deposits - Stated Maturities of Time Deposits (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Banking And Thrift [Abstract]
2014	$ 75,051
2015	25,282
2016	18,791
2017	8,271
2018	6,902
2019 and beyond	47
Total	$ 134,344

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Consolidated Statements of Changes In Shareholders' Equity (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Statement Of Stockholders Equity [Abstract]
Stock options exercised	574	1,261
Cash dividends declared per share	$ 0.72	$ 0.72	$ 0.72

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Held-to-Maturity, Fair Value	$ 42,643
Common stock, par value	$ 6.25	$ 6.25
Common stock, Authorized shares	9,000,000	9,000,000
Common stock, shares issued	2,980,602	2,980,602
Common stock, shares outstanding	2,736,634	2,736,060
Treasury stock, at cost	243,968	244,542

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Employee Benefits

12 Months Ended

Dec. 31, 2013

Postemployment Benefits [Abstract]

Employee Benefits

NOTE 9 – EMPLOYEE BENEFITS

The Company sponsors a contributory 401(k) profit-sharing plan (the “Plan”) covering substantially all employees who meet certain age and service requirements. The Plan permits investment in the Company’s common stock subject to various limitations and provides for discretionary profit sharing and matching contributions. The discretionary profit sharing contribution is determined annually by the Board of Directors and amounted to 2.75% of each eligible participant’s compensation in 2013 and 2.5% of each eligible participant’s compensation for 2012 and 2011, respectively. The Plan also provides for a 50% Company match of participant contributions up to a maximum of 2% of each participant’s annual compensation. Expense under the Plan amounted to approximately $284 thousand, $270 thousand and $242 thousand for 2013, 2012 and 2011, respectively.

The Company maintains a stock option plan. No stock options were granted during the three years presented.

The following summarizes stock options activity for the years ended December 31:

	2013						2012						2011
	Shares			Weighted Average Exercise Price			Shares			Weighted Average Exercise Price			Shares			Weighted Average Exercise Price
Outstanding at beginning of year		31,760		$	17.85			39,620		$	17.49			39,945		$	17.48
Granted		—			—			—			—			—			—
Exercised		(1,000	)		(16.10	)		(4,650	)		(16.05	)		—			—
Forfeited		—						(3,210	)		(16.06	)		(325	)		(16.05	)
Outstanding at end of year		30,760			17.90			31,760			17.85			39,620			17.49
Options exercisable at year-end		30,760		$	17.90			31,760		$	17.85			39,620		$	17.49
Weighted-average fair value of options granted during year					N/A						N/A						N/A

Options outstanding at December 31, 2013 were as follows:

	Outstanding
Range Of Exercise Prices	Number		Weighted Average Remaining Contractual Life (Years)		Number		Weighted Average Exercise Price
$ 15.00		1,000		0.60		1,000	$	15.00
18.00		29,760		2.22		29,760		18.00
Outstanding at year-end		30,760		2.17		30,760	$	17.90

The total intrinsic value of outstanding in-the-money stock options and outstanding in-the-money exercisable stock options was $34 thousand and $4 thousand at December 31, 2013 and 2012, respectively. There were 1,000 and 4,650 stock options exercised in 2013 and 2012, respectively and no stock options exercised in 2011. There were no share awards vested in 2013 or 2012.

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Fair Values of Financial Instruments - Schedule of Estimated Fair Values of Recognized Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financial assets:
Securities available-for-sale	$ 101,722	$ 129,291
Securities held-to-maturity	42,643
Bank-owned life insurance	9,551	8,298
Carrying Value [Member]
Financial assets:
Cash and cash equivalents	42,599	66,878
Securities available-for-sale	101,722	129,291
Securities held-to-maturity	44,350
Restricted stock	5,463	5,463
Net loans	374,040	360,000
Bank-owned life insurance	9,551	8,298
Accrued interest receivable	1,374	1,317
Financial liabilities:
Deposits	480,933	475,443
Short-term borrowings	48,671	43,992
Other borrowings	12,459	12,672
Accrued interest payable	96	135
Fair Value [Member]
Financial assets:
Cash and cash equivalents	42,599	66,878
Securities available-for-sale	101,722	129,291
Securities held-to-maturity	42,643
Restricted stock	5,463	5,463
Net loans	375,055	367,028
Bank-owned life insurance	9,551	8,298
Accrued interest receivable	1,374	1,317
Financial liabilities:
Deposits	481,695	476,942
Short-term borrowings	48,671	43,992
Other borrowings	12,559	13,772
Accrued interest payable	96	135
Fair Value [Member] | Level I [Member]
Financial assets:
Cash and cash equivalents	42,599	66,878
Securities available-for-sale	1,125	169
Bank-owned life insurance	9,551	8,298
Accrued interest receivable	1,374	1,317
Financial liabilities:
Deposits	346,589	317,369
Short-term borrowings	48,671	43,992
Accrued interest payable	96	135
Fair Value [Member] | Level II [Member]
Financial assets:
Securities available-for-sale	100,597	129,122
Securities held-to-maturity	42,643
Restricted stock	5,463	5,463
Fair Value [Member] | Level III [Member]
Financial assets:
Net loans	375,055	367,028
Financial liabilities:
Deposits	135,106	159,573
Other borrowings	$ 12,559	$ 13,772

XML

Fair Value Measurements - Schedule of Fair Value of Assets Measured on Nonrecurring Basis (Detail) (Fair Value, Measurements, Nonrecurring [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 9,856	$ 9,412
Mortgage Servicing Rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	225	214
Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets		25
Level I [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level I [Member] | Mortgage Servicing Rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level I [Member] | Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level II [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level II [Member] | Mortgage Servicing Rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level II [Member] | Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level III [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	9,856	9,412
Level III [Member] | Mortgage Servicing Rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	225	214
Level III [Member] | Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets		$ 25

XML

Document and Entity Information (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Mar. 25, 2014	Jun. 30, 2013
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Entity Registrant Name	CSB BANCORP INC /OH
Entity Central Index Key	0000880417
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,736,634
Entity Public Float			$ 48.1

XML

Financial Instruments with Off-Balance Sheet Risk

12 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Financial Instruments with Off-Balance Sheet Risk

NOTE 10 – FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

The Bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are primarily loan commitments to extend credit and letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the Consolidated Balance Sheets. The contract amount of these instruments reflects the extent of involvement the Bank has in these financial instruments. The Bank’s exposure to credit loss in the event of the nonperformance by the other party to the financial instruments for loan commitments to extend credit and letters of credit is represented by the contractual amounts of these instruments. The Bank uses the same credit policies in making loan commitments as it does for on-balance sheet loans.

The following financial instruments whose contract amount represents credit risk were outstanding at December 31:

(Dollars in thousands)	2013		2012
Commitments to extend credit	$	119,571	$	105,829
Letters of credit	$	679	$	1,539

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral, obtained if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, recognized inventory, property, plant and equipment, and income-producing commercial properties.

Letters of credit are written conditional commitments issued by the Company to guarantee the performance of a customer to a third party and are reviewed for renewal at expiration. All letters of credit outstanding at December 31, 2013 are due on demand or expire in 2014. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company requires collateral supporting these commitments when deemed appropriate.

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Financial Instruments with Off-Balance Sheet Risk - Summary of Financial Instruments whose Contract Amount Represents Credit Risk (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Off Balance Sheet Financing [Line Items]
Fair value of financial instruments	$ 679	$ 1,539
Commitments to Extend Credit [Member]
Off Balance Sheet Financing [Line Items]
Fair value of financial instruments	$ 119,571	$ 105,829

XML

Fair Value Measurements - Schedule of Fair Value of Assets Measured on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Available-for-sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 101,722	$ 129,291
U.S. Treasury security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	997	100
U.S. Government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	22,301	35,980
Mortgage-backed securities of government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	54,535	69,039
Asset-backed securities of government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	2,775	2,823
State and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	16,447	16,883
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	4,539	4,397
Total debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	101,594	129,222
Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	128	69
Level I [Member] | Available-for-sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1,125	169
Level I [Member] | U.S. Treasury security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	997	100
Level I [Member] | U.S. Government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level I [Member] | Mortgage-backed securities of government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level I [Member] | Asset-backed securities of government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level I [Member] | State and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level I [Member] | Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level I [Member] | Total debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	997	100
Level I [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	128	69
Level II [Member] | Available-for-sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	100,597	129,122
Level II [Member] | U.S. Treasury security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level II [Member] | U.S. Government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	22,301	35,980
Level II [Member] | Mortgage-backed securities of government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	54,535	69,039
Level II [Member] | Asset-backed securities of government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	2,775	2,823
Level II [Member] | State and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	16,447	16,883
Level II [Member] | Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	4,539	4,397
Level II [Member] | Total debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	100,597	129,122
Level II [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level III [Member] | Available-for-sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level III [Member] | U.S. Treasury security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level III [Member] | U.S. Government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level III [Member] | Mortgage-backed securities of government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level III [Member] | Asset-backed securities of government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level III [Member] | State and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level III [Member] | Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level III [Member] | Total debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets
Level III [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
INTEREST AND DIVIDEND INCOME
Loans, including fees	$ 17,963	$ 17,279	$ 16,977
Taxable securities	2,572	2,672	2,538
Nontaxable securities	513	486	421
Other	90	147	82
Total interest and dividend income	21,138	20,584	20,018
INTEREST EXPENSE
Deposits	1,720	2,323	2,864
Short-term borrowings	67	91	139
Other borrowings	468	564	675
Total interest expense	2,255	2,978	3,678
NET INTEREST INCOME	18,883	17,606	16,340
Provision for loan losses	840	823	950
Net interest income, after provision for loan losses	18,043	16,783	15,390
NONINTEREST INCOME
Service charges on deposit accounts	1,349	1,305	1,134
Trust services	826	671	677
Debit card interchange fees	779	797	631
Securities gain, net	159		237
Gain on sale of loans, net	347	591	219
Other income	858	840	610
Total noninterest income	4,318	4,204	3,508
NONINTEREST EXPENSES
Salaries and employee benefits	8,261	7,960	7,459
Occupancy expense	1,026	1,025	890
Equipment expense	719	618	524
Professional and director fees	628	814	713
Franchise tax expense	581	542	550
Marketing and public relations	395	392	320
Software expense	530	391	373
Debit card expense	268	304	253
Amortization of intangible assets	135	140	78
FDIC insurance expense	359	328	352
Branch acquisition expense		8	337
Net cost of operation of other real estate	9	33	(25)
Other expenses	1,937	1,895	1,785
Total noninterest expenses	14,848	14,450	13,609
Income before income taxes	7,513	6,537	5,289
FEDERAL INCOME TAX PROVISION	2,273	1,990	1,602
NET INCOME	$ 5,240	$ 4,547	$ 3,687
NET INCOME PER SHARE
Basic	$ 1.91	$ 1.66	$ 1.35
Diluted	$ 1.91	$ 1.66	$ 1.35

XML

Premises and Equipment

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Premises and Equipment

NOTE 4 – PREMISES AND EQUIPMENT

Premises and equipment consist of the following at December 31:

(Dollars in thousands)	2013		2012
Land and improvements	$	1,489	$	1,489
Buildings and improvements		9,656		9,422
Furniture and equipment		7,327		6,763
Leasehold improvements		260		260
		18,732		17,934
Accumulated depreciation		10,042		9,459
Premises and equipment, net	$	8,690	$	8,475

The Bank leases certain office locations. Total rental expense under these leases approximated $299 thousand, $298 thousand, and $187 thousand in 2013, 2012 and 2011, respectively. Depreciation expense amounted to $625 thousand, $567 thousand and $530 thousand for the years ended December 31, 2013, 2012 and 2011, respectively.

Future minimum lease payments at December 31, 2013 were as follows:

(Dollars in thousands)
2014	$	299
2015		294
2016		172
2017		32
Total	$	797

XML

Loans

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Loans

NOTE 3 – LOANS

Loans consist of the following at December 31:

(Dollars in thousands)	2013		2012
Commercial	$	117,478	$	104,899
Commercial real estate		129,828		119,192
Residential real estate		111,445		110,412
Construction & land development		13,444		23,358
Consumer		6,687		6,480
Total loans before deferred costs		378,882		364,341
Deferred loan costs		243		239
Total loans	$	379,125	$	364,580

Loan Origination/Risk Management

The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions.

Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Underwriting standards are designed to promote relationship banking rather than transactional banking. The Company’s management examines current and occasionally projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. However, the cash flows of borrowers may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. At December 31, 2013 and 2012, approximately 77% and 81%, respectively of the outstanding principal balance of the Company’s commercial real estate loans were secured by owner-occupied properties.

With respect to loans to developers and builders that are secured by non-owner occupied properties, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction and land development loans are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, and financial analysis of the developers and property owners. Construction and land development loans are generally based upon estimates of costs and value associated with the completed project. These estimates may be inaccurate. Construction and land development loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.

The Company originates consumer loans utilizing a judgmental underwriting process. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed, jointly by line and staff personnel. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk.

The Company maintains an independent loan review department that reviews and validates the credit risk program on a periodic basis. Results of these reviews are presented to management. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures.

Concentrations of Credit

Nearly all of the Company’s lending activity occurs within the State of Ohio, including the four counties of Holmes, Stark, Tuscarawas and Wayne, as well as other markets. The majority of the Company’s loan portfolio consists of commercial and industrial and commercial real estate loans. As of December 31, 2013 and 2012, there were no concentrations of loans greater than 7% related to any single industry.

Allowance for Loan Losses

The following table details activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2013, 2012 and 2011. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

(Dollars in thousands)	Commercial			Commercial Real Estate			Residential Real Estate			Construction & Land Development			Consumer			Unallocated			Total
December 31, 2013
Beginning balance	$	933		$	1,902		$	1,096		$	253		$	76		$	320		$	4,580
Provision for loan losses		451			78			173			(75	)		13			200			840
Charge-offs		(190	)		(108	)		(82	)		—			(48	)					(428	)
Recoveries		25			—			18			—			50						93
Net charge-offs		(165)			(108)			(64)			—			2						(335)
Ending balance	$	1,219		$	1,872		$	1,205		$	178		$	91		$	520		$	5,085
December 31, 2012
Beginning balance	$	1,024		$	1,673		$	894		$	180		$	78		$	233		$	4,082
Provision for loan losses		(78	)		512			206			73			23			87			823
Charge-offs		(29	)		(283	)		(106	)		—			(89	)					(507	)
Recoveries		16			—			102			—			64						182
Net charge-offs		(13)			(283)			(4)			—			(25)						(325)
Ending balance	$	933		$	1,902		$	1,096		$	253		$	76		$	320		$	4,580
December 31, 2011
Beginning balance	$	1,179		$	1,183		$	1,057		$	213		$	80		$	319		$	4,031
Provision for loan losses		294			558			115			8			61			(86	)		950
Charge-offs		(487	)		(68	)		(297	)		(41	)		(121	)					(1,014	)
Recoveries		38			—			19			—			58						115
Net charge-offs		(449)			(68)			(278)			(41)			(63)						(899)
Ending balance	$	1,024		$	1,673		$	894		$	180		$	78		$	233		$	4,082

The following table presents the balance in the allowance for loan losses and the ending loan balances by portfolio segment and impairment method as of December 31:

(Dollars in thousands)	Commercial		Commercial Real Estate		Residential Real  Estate		Construction & Land Development		Consumer		Unallocated		Total
2013
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$	241	$	331	$	212	$	—	$	—	$	—	$	784
Collectively evaluated for impairment		978		1,541		993		178		91		520		4,301
Total ending allowance balance	$	1,219	$	1,872	$	1,205	$	178	$	91	$	520	$	5,085
Loans:
Loans individually evaluated for impairment	$	5,576	$	3,220	$	1,844	$	—	$	—			$	10,640
Loans collectively evaluated for impairment		111,902		126,608		109,601		13,444		6,687				368,242
Total ending loans balance	$	117,478	$	129,828	$	111,445	$	13,444	$	6,687			$	378,882
2012
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$	85	$	522	$	172	$	—	$	—	$	—	$	779
Collectively evaluated for impairment		848		1,380		924		253		76		320		3,801
Total ending allowance balance	$	933	$	1,902	$	1,096	$	253	$	76	$	320	$	4,580
Loans:
Loans individually evaluated for impairment	$	4,315	$	4,573	$	1,137	$	166	$	—			$	10,191
Loans collectively evaluated for impairment		100,584		114,619		109,275		23,192		6,480				354,150
Total ending loans balance	$	104,899	$	119,192	$	110,412	$	23,358	$	6,480			$	364,341

The following table presents loans individually evaluated for impairment by class of loans as of December 31:

(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
2013
Commercial	$	5,595	$	7	$	5,580	$	5,587	$	241	$	4,185	$	182
Commercial real estate		3,540		563		2,658		3,221		331		3,650		163
Residential real estate		2,001		337		1,510		1,847		212		1,315		41
Construction & land development		—		—		—		—		—		21		2
Total impaired loans	$	11,136	$	907	$	9,748	$	10,655	$	784	$	9,171	$	388
2012
Commercial	$	4,315	$	—	$	4,329	$	4,329	$	85	$	4,123	$	167
Commercial real estate		4,906		1,723		2,849		4,572		522		4,396		152
Residential real estate		1,223		86		1,057		1,143		172		770		18
Construction & land development		173		166		—		166		—		167		—
Total impaired loans	$	10,617	$	1,975	$	8,235	$	10,210	$	779	$	9,456	$	337
2011
Commercial	$	4,605	$	—	$	4,605	$	4,605	$	165	$	2,890	$	91
Commercial real estate		2,621		—		2,476		2,476		304		2,924		78
Residential real estate		182		—		182		182		53		103		—
Construction & land development		—		—		—		—		—		—		—
Total impaired loans	$	7,408	$	—	$	7,263	$	7,263	$	522	$	5,917	$	169

The following table presents the aging of past due and nonaccrual loans by class of loans as of December 31:

(Dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days + Past Due		Nonaccrual		Total Past Due and Nonaccrual		Total Loans
2013
Commercial	$	117,342	$	15	$	37	$	—	$	84	$	136	$	117,478
Commercial real estate		128,462		111		107		40		1,108		1,366		129,828
Residential real estate		109,274		616		467		46		1,042		2,171		111,445
Construction & land development		12,494		—		—		950		—		950		13,444
Consumer		6,524		123		40		—		—		163		6,687
Total loans	$	374,096	$	865	$	651	$	1,036	$	2,234	$	4,786	$	378,882
2012
Commercial	$	104,348	$	60	$	8	$	—	$	483	$	551	$	104,899
Commercial real estate		117,372		41		34		—		1,745		1,820		119,192
Residential real estate		108,574		472		430		131		805		1,838		110,412
Construction & land development		23,180		—		5		—		173		178		23,358
Consumer		6,325		132		23		—		—		155		6,480
Total loans	$	359,799	$	705	$	500	$	131	$	3,206	$	4,542	$	364,341

Troubled Debt Restructurings

The Company had troubled debt restructurings (“TDRs”) of $8.6 million as of December 31, 2013, with $583 thousand of specific reserves allocated to customers whose loan terms have been modified in troubled debt restructurings. As of December 31, 2012, the Company had TDRs of $8.7 million, with $718 thousand of specific reserves allocated. At December 31, 2013, $7.8 million of the loans classified as TDRs were performing in accordance with their modified terms. Of the remaining $719 thousand, all were in nonaccrual of interest status.

None of the loans that were restructured in 2012 have defaulted in 2013. Of the loans that were restructured in 2011, one loan in the amount of $54 thousand subsequently defaulted in 2012. All of the loan modifications include extensions of the loan maturity dates.

Loan modifications that are considered TDRs completed during the year ended December 31:

(Dollars in thousands)	Number Of Loans Restructured		Pre-Modification Recorded Investment		Post-Modification Recorded Investment
2013
Commercial		3	$	83	$	83
Residential real estate		3		264		264
Total restructured loans		6	$	347	$	347
2012
Commercial real estate		2	$	177	$	177
Residential real estate		9		798		798
Total restructured loans		11	$	975	$	975

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis includes commercial loans with an outstanding balance greater than $275 thousand. This analysis is performed on an annual basis. The Company uses the following definitions for risk ratings:

Pass. Loans classified as pass (Acceptable, Low Acceptable or Pass Watch) may exhibit a wide array of characteristics but at a minimum represent an acceptable risk to the Bank. Borrowers in this rating may have leveraged but acceptable balance sheet positions, satisfactory asset quality, stable to favorable sales and earnings trends, acceptable liquidity and adequate cash flow. Loans are considered fully collectible and require an average amount of administration. While generally adhering to credit policy, these loans may exhibit occasional exceptions that do not result in undue risk to the Bank. Borrowers are generally capable of absorbing setbacks, financial and otherwise, without the threat of failure.

Special Mention. Loans classified as special mention have a material weakness that deserves management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $275 thousand or are included in groups of homogeneous loans. Based on the most recent analysis performed, the risk category of loans by class is as follows at December 31:

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
2013
Commercial	$	101,195	$	10,352	$	5,066	$	—	$	865	$	117,478
Commercial real estate		115,265		9,076		4,041		—		1,446		129,828
Residential real estate		237		—		47		—		111,161		111,445
Construction & land development		9,470		587		1,884		—		1,503		13,444
Consumer		—		—		—		—		6,687		6,687
Total	$	226,167	$	20,015	$	11,038	$	—	$	121,662	$	378,882
2012
Commercial	$	92,123	$	5,854	$	6,637	$	—	$	285	$	104,899
Commercial real estate		102,602		5,671		8,459		—		2,460		119,192
Residential real estate		200		—		53		—		110,159		110,412
Construction & land development		18,063		2,750		1,244		—		1,301		23,358
Consumer		—		—		—		—		6,480		6,480
Total	$	212,988	$	14,275	$	16,393	$	—	$	120,685	$	364,341

Nonperforming loans include loans past due 90 days and greater and loans on nonaccrual of interest status. The following table presents loans that are not rated, by class of loans as of December 31:

(Dollars in thousands)	Performing		Nonperforming		Total
2013
Commercial	$	865	$	—	$	865
Commercial real estate		1,446		—		1,446
Residential real estate		110,119		1,042		111,161
Construction & land development		1,503		—		1,503
Consumer		6,687		—		6,687
Total	$	120,620	$	1,042	$	121,662
2012
Commercial	$	285	$	—	$	285
Commercial real estate		2,460		—		2,460
Residential real estate		109,276		883		110,159
Construction & land development		1,294		7		1,301
Consumer		6,480		—		6,480
Total	$	119,795	$	890	$	120,685

Mortgage Servicing Rights

For the years ended December 31, 2013 and 2012, the Company had outstanding mortgage servicing rights (“MSRs”) of $225 thousand and $214 thousand, respectively. No valuation allowance was recorded at December 31, 2013 or 2012 as the fair value of the MSRs exceeded their carrying value. On December 31, 2013, the Company had $56.9 million residential mortgage loans with servicing retained as compared to $52.7 million with servicing retained at December 31, 2012.

Total loans serviced for others approximated $70.2 million and $60.2 million at December 31, 2013 and 2012, respectively.

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Fair Values of Financial Instruments

12 Months Ended

Dec. 31, 2013

Investments All Other Investments [Abstract]

Fair Values of Financial Instruments

NOTE 15 – FAIR VALUES OF FINANCIAL INSTRUMENTS

The estimated fair values of recognized financial instruments as of December 31 are as follows:

	2013
	Carrying								Total Fair
(Dollars in thousands)	Value		Level I		Level II		Level III		Value
Financial assets:
Cash and cash equivalents	$	42,599	$	42,599	$	—	$	—	$	42,599
Securities available-for-sale		101,722		1,125		100,597		—		101,722
Securities held-to-maturity		44,350		—		42,643		—		42,643
Restricted stock		5,463		—		5,463		—		5,463
Net loans		374,040		—		—		375,055		375,055
Bank-owned life insurance		9,551		9,551		—		—		9,551
Accrued interest receivable		1,374		1,374		—		—		1,374
Financial liabilities:
Deposits	$	480,933	$	346,589	$	—	$	135,106	$	481,695
Short-term borrowings		48,671		48,671		—		—		48,671
Other borrowings		12,459		—		—		12,559		12,559
Accrued interest payable		96		96		—		—		96

	2012
	Carrying								Total Fair
(Dollars in thousands)	Value		Level I		Level II		Level III		Value
Financial assets:
Cash and cash equivalents	$	66,878	$	66,878	$	—	$	—	$	66,878
Securities available-for-sale		129,291		169		129,122		—		129,291
Restricted stock		5,463		—		5,463		—		5,463
Net loans		360,000		—		—		367,028		367,028
Bank-owned life insurance		8,298		8,298		—		—		8,298
Accrued interest receivable		1,317		1,317		—		—		1,317
Financial liabilities:
Deposits	$	475,443	$	317,369	$	—	$	159,573	$	476,942
Short-term borrowings		43,992		43,992		—		—		43,992
Other borrowings		12,672		—		—		13,772		13,772
Accrued interest payable		135		135		—		—		135

For purposes of the above disclosures of estimated fair value, the following assumptions are used:

Cash and cash equivalents; Accrued interest receivable; Short-term borrowings, and Accrued interest payable

The fair value of the above instruments is considered to be carrying value.

Securities

The fair value of securities available-for-sale and securities held-to-maturity which are measured on a recurring basis are determined primarily by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other similar securities. Classified as Level I or Level II in the fair value hierarchy.

Net loans

The fair value for loans is estimated by discounting future cash flows using current market inputs at which loans with similar terms and qualities would be made to borrowers of similar credit quality. Where quoted market prices were available, primarily for certain residential mortgage loans, such market rates were utilized as estimates for fair value. Fair value of nonaccrual loans is based on carrying value, classified as Level III.

Bank-owned life insurance

The carrying amount of bank-owned life insurance is based on the cash surrender value of the policies and is a reasonable estimate of fair value, classified as Level I.

Restricted stock

Restricted stock includes FHLB Stock and Federal Reserve Bank Stock. It is not practicable to determine the fair value of regulatory equity securities due to restrictions placed on their transferability. Fair value is based on carrying value, classified as Level II.

Deposits

The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rates are estimated using market rates currently offered for similar instruments with similar remaining maturities, resulting in a Level III classification. Demand, savings, and money market deposit accounts are valued at the amount payable on demand as of quarter end, resulting in a Level I classification.

Other borrowings

The fair value of FHLB advances are estimated using a discounted cash flow analysis based on the current borrowing rates for similar types of borrowings, resulting in a Level III classification.

The Company also has unrecognized financial instruments at December 31, 2013 and 2012. These financial instruments relate to commitments to extend credit and letters of credit. The aggregated contract amount of such financial instruments was approximately $120.3 million at December 31, 2013 and $107.4 million at December 31, 2012. Such amounts are also considered to be the estimated fair values.

The fair value estimates of financial instruments are made at a specific point in time based on relevant market information. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument over the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Since no ready market exists for a significant portion of the financial instruments, fair value estimates are largely based on judgments after considering such factors as future expected credit losses, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates.

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Related-Party Transactions

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Related-Party Transactions

NOTE 11 – RELATED-PARTY TRANSACTIONS

In the ordinary course of business, loans are granted by the Company to executive officers, directors and their related business interests consistent with Federal Reserve Regulation O. The following is an analysis of activity of related-party loans for the year end December 31, 2013:

(Dollars in thousands)
Balance at beginning of year	$	6,218
New loans and advances		315
Repayments, including loans sold		1,441
Balance at end of year	$	5,092

Deposits from executive officers, directors and their related business interests at both December 31, 2013 and 2012 were approximately $10.4 million and $10.5 million.

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Regulatory Matters - Summary of Actual Capital Amounts and Ratios of Company and Bank (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Consolidated [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total capital (to risk-weighted assets), actual amount	$ 53,268	$ 49,534
Tier I capital (to risk-weighted assets), actual amount	48,357	44,946
Tier I capital (to average assets), actual amount	48,357	44,946
Total capital (to risk-weighted assets), actual ratio	13.60%	13.30%
Tier I capital (to risk-weighted assets), actual ratio	12.30%	12.10%
Tier I capital (to average assets), actual ratio	8.20%	7.90%
Total capital (to risk-weighted assets), minimum required for capital adequacy purposes amount	31,416	29,707
Tier I capital (to risk-weighted assets), minimum required for capital adequacy purposes amount	15,708	14,854
Tier I capital (to average assets), minimum required for capital adequacy purposes amount	23,550	22,794
Total capital (to risk-weighted assets), minimum required for capital adequacy purposes ratio	8.00%	8.00%
Tier I capital (to risk-weighted assets), minimum required for capital adequacy purposes ratio	4.00%	4.00%
Tier I capital (to average assets), minimum required for capital adequacy purposes ratio	4.00%	4.00%
Total capital (to risk-weighted assets), minimum required to be well capitalized under prompt corrective action amount	39,270	37,134
Tier I capital (to risk-weighted assets), minimum required to be well capitalized under prompt corrective action amount	23,562	22,280
Tier I capital (to average assets), minimum required to be well capitalized under prompt corrective action amount	29,438	28,493
Total capital (to risk-weighted assets), minimum required to be well capitalized under prompt corrective action ratio	10.00%	10.00%
Tier I capital (to risk-weighted assets), minimum required to be well capitalized under prompt corrective action ratio	6.00%	6.00%
Tier I capital (to average assets), minimum required to be well capitalized under prompt corrective action ratio	5.00%	5.00%
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total capital (to risk-weighted assets), actual amount	52,458	48,940
Tier I capital (to risk-weighted assets), actual amount	47,558	44,352
Tier I capital (to average assets), actual amount	47,558	44,352
Total capital (to risk-weighted assets), actual ratio	13.40%	13.20%
Tier I capital (to risk-weighted assets), actual ratio	12.10%	12.00%
Tier I capital (to average assets), actual ratio	8.10%	7.80%
Total capital (to risk-weighted assets), minimum required for capital adequacy purposes amount	31,392	29,695
Tier I capital (to risk-weighted assets), minimum required for capital adequacy purposes amount	15,696	14,847
Tier I capital (to average assets), minimum required for capital adequacy purposes amount	23,544	22,788
Total capital (to risk-weighted assets), minimum required for capital adequacy purposes ratio	8.00%	8.00%
Tier I capital (to risk-weighted assets), minimum required for capital adequacy purposes ratio	4.00%	4.00%
Tier I capital (to average assets), minimum required for capital adequacy purposes ratio	4.00%	4.00%
Total capital (to risk-weighted assets), minimum required to be well capitalized under prompt corrective action amount	39,240	37,118
Tier I capital (to risk-weighted assets), minimum required to be well capitalized under prompt corrective action amount	23,544	22,271
Tier I capital (to average assets), minimum required to be well capitalized under prompt corrective action amount	$ 29,430	$ 28,485
Total capital (to risk-weighted assets), minimum required to be well capitalized under prompt corrective action ratio	10.00%	10.00%
Tier I capital (to risk-weighted assets), minimum required to be well capitalized under prompt corrective action ratio	6.00%	6.00%
Tier I capital (to average assets), minimum required to be well capitalized under prompt corrective action ratio	5.00%	5.00%

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Borrowings

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Borrowings

NOTE 7 – BORROWINGS

Short-term borrowings

Short-term borrowings include overnight repurchase agreements, federal funds purchased and short-term advances through the FHLB. The outstanding balances and related information for short-term borrowings are summarized as follows:

(Dollars in thousands)	2013			2012
Balance at year-end	$	48,671		$	43,992
Average balance outstanding		45,330			40,893
Maximum month-end balance		48,671			43,992
Weighted-average rate at year-end		0.15	%		0.20	%
Weighted-average rate during the year		0.15			0.22

Average balances outstanding during the year represent daily average balances, and average interest rates represent interest expenses divided by the related average balances.

Other borrowings

The following table sets forth information concerning other borrowings:

	Maturity Range				Weighted Average Interest			Stated Interest Rate Range						At December 31,
(Dollars in thousands)	From		To		Rate			From			To			2013		2012
Fixed rate		10/2/14		12/21/17		3.62	%		3.48	%		3.73	%	$	12,000	$	12,000
Fixed rate amortizing		1/1/14		3/1/17		5.99			4.80			7.15			459		672
														$	12,459	$	12,672

Maturities of other borrowings at December 31, 2013, are summarized as follows for the years ended December 31:

(Dollars in thousands)	Amount		Weighted Average Rate
2014	$	2,190		3.91	%
2015		169		6.01
2016		97		5.84
2017		10,003		3.61
	$	12,459		3.71	%

Monthly principal and interest payments are due on the fixed rate amortizing borrowings; additionally a 10% principal curtailment is due on the borrowing’s anniversary date. FHLB borrowings are secured by a blanket collateral agreement. At December 31, 2013 the Company has the capacity to borrow an additional $42.1 million from the FHLB.

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Loans - Schedule of Loans Not Rated by Class of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	$ 121,662	$ 120,685
Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	120,620	119,795
Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,042	890
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	865	285
Commercial [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	865	285
Commercial [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,446	2,460
Commercial Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,446	2,460
Commercial Real Estate [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	111,161	110,159
Residential Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	110,119	109,276
Residential Real Estate [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,042	883
Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,503	1,301
Construction & Land Development [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,503	1,294
Construction & Land Development [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans		7
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	6,687	6,480
Consumer [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	6,687	6,480
Consumer [Member] | Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans

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Core Deposit Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Core Deposit Intangible Assets

NOTE 5 – CORE DEPOSIT INTANGIBLE ASSETS

Core Deposit Intangible

No additional core deposit intangible was recorded in 2013 or 2012, with $706 thousand recorded as a result of the acquisition of two branches in Wooster, Ohio in 2011. The core deposit intangible asset will be amortized over an estimated life of ten years. Amortization expense related to the core deposit intangible asset totaled $135 thousand, $140 thousand and $78 thousand in 2013, 2012 and 2011, respectively. The following table shows the core deposit intangible and the related accumulated amortization as of December 31:

(Dollars in thousands)	2013			2012			2011
Gross carrying amount	$	1,251		$	1,251		$	1,251
Accumulated amortization		(492	)		(357	)		(217	)
Net carrying amount	$	759		$	894		$	1,034

The estimated aggregate future amortization expense for the core deposit assets remaining as of December 31, 2013 is as follows:

(Dollars in thousands)	Core Deposit Amortization
2014	$	129
2015		125
2016		121
2017		116
2018		101
Thereafter		167
	$	759

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Interest-Bearing Deposits

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Interest-Bearing Deposits

NOTE 6 - INTEREST-BEARING DEPOSITS

Interest-bearing deposits at December 31 are as follows:

(Dollars in thousands)	2013		2012
Demand	$	76,327	$	74,429
Savings		149,937		138,794
Time deposits:
In excess of $100,000		42,562		54,163
Other		91,782		103,910
Total interest-bearing deposits	$	360,608	$	371,296

At December 31, 2013, stated maturities of time deposits were as follows:

(Dollars in thousands)
2014	$	75,051
2015		25,282
2016		18,791
2017		8,271
2018		6,902
2019 and beyond		47
Total	$	134,344

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Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 8 – INCOME TAXES

The provision for income taxes consists of the following for the years ended December 31:

(Dollars in thousands)	2013		2012			2011
Current	$	2,196	$	2,040		$	1,257
Deferred		77		(50	)		345
Total income tax provision	$	2,273	$	1,990		$	1,602

The income tax provision attributable to income from operations differs from the amounts computed by applying the statutory federal income tax rate of 34% to income before income taxes as follows:

(Dollars in thousands)	2013			2012			2011
Expected provision using statutory federal income tax rate	$	2,554		$	2,223		$	1,798
Tax-exempt income on state and municipal securities and political subdivision loans		(203	)		(269	)		(169	)
Interest expense associated with carrying certain state and municipal securities and political subdivision loans		6			6			8
Tax-exempt income on bank owned life insurance		(86	)		(78	)		(36	)
Other		2			108			1
Total income tax provision	$	2,273		$	1,990		$	1,602

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31 are as follows:

(Dollars in thousands)	2013			2012
Allowance for loan losses	$	1,887		$	1,470
Net operating loss carryforward		470			598
Capital loss carryforward		35			35
Unrealized loss on securities available-for-sale		750			—
Other		37			109
		3,179			2,212
Valuation allowance on deferred tax assets		(35)			(35)
Deferred tax assets		3,144			2,177
Premises and equipment		(443	)		(399	)
Federal Home Loan Bank stock dividends		(736	)		(736	)
Deferred loan fees		(226	)		(173	)
Unrealized gain on securities available-for-sale		—			(960	)
Prepaid expenses		(120	)		(120	)
Other		(462	)		(265	)
Deferred tax liabilities		(1,987	)		(2,653	)
Net deferred tax asset (liability)	$	1,157		$	(476	)

The Company has a net operating loss tax carryforward of approximately $1.4 million, as of December 31, 2013. The net operating loss carryforward can be used to offset future taxable income and will begin to expire in tax year 2026.

The Company believes it is more likely than not that the benefit of deferred tax assets will be realized with the possible exception of the capital loss carryforward due to expire in 2014. A valuation allowance for the capital loss carryforward is reflected at December 31, 2013 and 2012. No additional valuation allowance is deemed necessary in view of certain tax strategies, coupled with the anticipated future taxable income as evidenced by the Company’s earnings.

There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. CSB recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statement of Income. With few exceptions, CSB is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years prior to 2010.

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Core Deposit Intangible Assets - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Amortization Expense [Line Items]
Amortization Expenses	$ 135	$ 140	$ 78
Branch acquisition of core deposit intangible	0	0	706
Core Deposits [Member]
Amortization Expense [Line Items]
Amortization Expenses	$ 135	$ 140	$ 78
Asset Amortized over an estimated life	10 years

XML

Regulatory Matters - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended	0 Months Ended
	Dec. 31, 2013	Jan. 01, 2014 Subsequent Event [Member]
Schedule Of Regulatory Assets And Liabilities [Line Items]
Period of Retained Earnings For Restriction of Dividend	2 years
Provision for dividend to the Company		$ 7.5
Maximum percentage of secured loans of Bank's common stock and capital surplus	10.00%

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Core Deposit Intangible Assets - Future Amortization Expense for Core Deposit Asset (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Goodwill And Intangible Assets Disclosure [Abstract]
2014	$ 129
2015	125
2016	121
2017	116
2018	101
Thereafter	167
Net carrying amount	$ 759

XML

Premises and Equipments - Summary of Future Minimum Lease Payments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Property Plant And Equipment Useful Life And Values [Abstract]
2014	$ 299
2015	294
2016	172
2017	32
Total	$ 797

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Fair Value Measurements - Schedule of Quantitative Information of Assets Measured at Fair Value on Nonrecurring Basis (Detail) (Fair Value, Measurements, Nonrecurring [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Estimate	$ 9,856	$ 9,412
Mortgage Servicing Rights [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Estimate	225	214
Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Estimate		25
Level III [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Estimate	9,856	9,412
Level III [Member] | Mortgage Servicing Rights [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Estimate	225	214
Level III [Member] | Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Estimate		25
Level III [Member] | Discounted Cash Flow [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Estimate	8,663	7,260
Remaining term	62 months	74 months
Discount rate	7.50%	7.80%
Level III [Member] | Discounted Cash Flow [Member] | Mortgage Servicing Rights [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Estimate	225	214
Remaining term	244 months	244 months
Discount rate	1.50%	1.50%
Level III [Member] | Discounted Cash Flow [Member] | Minimum [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Remaining term	3 months	4 months
Discount rate	7.10%	7.50%
Level III [Member] | Discounted Cash Flow [Member] | Minimum [Member] | Mortgage Servicing Rights [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Remaining term	12 months	24 months
Level III [Member] | Discounted Cash Flow [Member] | Maximum [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Remaining term	29 years	29 years
Discount rate	12.00%	12.00%
Level III [Member] | Discounted Cash Flow [Member] | Maximum [Member] | Mortgage Servicing Rights [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Remaining term	30 years	30 years
Level III [Member] | Appraisal of Collateral [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Estimate	1,193	2,152
Liquidation expense	(10.00%)	(10.00%)
Level III [Member] | Appraisal of Collateral [Member] | Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Estimate		$ 25
Level III [Member] | Appraisal of Collateral [Member] | Minimum [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Appraisal adjustments	(20.00%)	(20.00%)
Level III [Member] | Appraisal of Collateral [Member] | Minimum [Member] | Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Management discount for property type		0.00%
Level III [Member] | Appraisal of Collateral [Member] | Maximum [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Appraisal adjustments	(25.00%)	(35.00%)
Level III [Member] | Appraisal of Collateral [Member] | Maximum [Member] | Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Management discount for property type		(67.00%)

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Borrowings (Tables)

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Short-Term Borrowings

The outstanding balances and related information for short-term borrowings are summarized as follows:

(Dollars in thousands)	2013			2012
Balance at year-end	$	48,671		$	43,992
Average balance outstanding		45,330			40,893
Maximum month-end balance		48,671			43,992
Weighted-average rate at year-end		0.15	%		0.20	%
Weighted-average rate during the year		0.15			0.22

Concerning of Other Borrowings

The following table sets forth information concerning other borrowings:

	Maturity Range				Weighted Average Interest			Stated Interest Rate Range						At December 31,
(Dollars in thousands)	From		To		Rate			From			To			2013		2012
Fixed rate		10/2/14		12/21/17		3.62	%		3.48	%		3.73	%	$	12,000	$	12,000
Fixed rate amortizing		1/1/14		3/1/17		5.99			4.80			7.15			459		672
														$	12,459	$	12,672

Schedule of Maturities Other Borrowings

Maturities of other borrowings at December 31, 2013, are summarized as follows for the years ended December 31:

(Dollars in thousands)	Amount		Weighted Average Rate
2014	$	2,190		3.91	%
2015		169		6.01
2016		97		5.84
2017		10,003		3.61
	$	12,459		3.71	%

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Securities - Summary of Gross Unrealized Losses and Fair Value of Available for Sale Securities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity, Gross Unrealized Losses, Total	$ 1,707
Gross Unrealized Losses, Less Than 12 Months		99
Fair value, Less Than 12 Months		20,237
Gross Unrealized Losses, 12 Months Or More		33
Fair Value, 12 Months Or More		1,020
Gross Unrealized Losses, Total		132
Fair Value, Total		21,257
Equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months
Fair value, Less Than 12 Months
Gross Unrealized Losses, 12 Months Or More	1	9
Fair Value, 12 Months Or More	1	45
Gross Unrealized Losses, Total	1	9
Fair Value, Total	1	45
U.S. Government agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity, Gross Unrealized Losses, Less Than 12 Months	771
Held-to-maturity, Fair Value, Less Than 12 Months	14,559
Held-to-maturity, Gross Unrealized Losses, 12 Months Or More	57
Held-to-maturity, Fair Value, 12 Months Or More	1,799
Held-to-maturity, Gross Unrealized Losses, Total	828
Held-to-maturity, Fair Value, Total	16,358
Gross Unrealized Losses, Less Than 12 Months	590	43
Fair value, Less Than 12 Months	15,409	15,957
Gross Unrealized Losses, 12 Months Or More	116
Fair Value, 12 Months Or More	1,884
Gross Unrealized Losses, Total	706	43
Fair Value, Total	17,293	15,957
Mortgage-backed securities of government agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity, Gross Unrealized Losses, Less Than 12 Months	879
Held-to-maturity, Fair Value, Less Than 12 Months	20,149
Held-to-maturity, Gross Unrealized Losses, 12 Months Or More
Held-to-maturity, Fair Value, 12 Months Or More
Held-to-maturity, Gross Unrealized Losses, Total	879
Held-to-maturity, Fair Value, Total	20,149
Gross Unrealized Losses, Less Than 12 Months	691	1
Fair value, Less Than 12 Months	29,938	344
Gross Unrealized Losses, 12 Months Or More
Fair Value, 12 Months Or More
Gross Unrealized Losses, Total	691	1
Fair Value, Total	29,938	344
Asset-backed securities of government agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months		39
Fair value, Less Than 12 Months		1,833
Gross Unrealized Losses, 12 Months Or More
Fair Value, 12 Months Or More
Gross Unrealized Losses, Total		39
Fair Value, Total		1,833
State and political subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months	122	12
Fair value, Less Than 12 Months	3,522	1,737
Gross Unrealized Losses, 12 Months Or More	21
Fair Value, 12 Months Or More	233
Gross Unrealized Losses, Total	143	12
Fair Value, Total	3,755	1,737
Corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months	4	4
Fair value, Less Than 12 Months	1,163	366
Gross Unrealized Losses, 12 Months Or More	1	24
Fair Value, 12 Months Or More	499	975
Gross Unrealized Losses, Total	5	28
Fair Value, Total	1,662	1,341
Total debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months		99
Fair value, Less Than 12 Months		20,237
Gross Unrealized Losses, 12 Months Or More		24
Fair Value, 12 Months Or More		975
Gross Unrealized Losses, Total		123
Fair Value, Total		21,212
U.S. Treasury security [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months	8
Fair value, Less Than 12 Months	997
Gross Unrealized Losses, 12 Months Or More
Fair Value, 12 Months Or More
Gross Unrealized Losses, Total	8
Fair Value, Total	$ 997

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Condensed Parent Company Financial Information

12 Months Ended

Dec. 31, 2013

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Parent Company Financial Information

NOTE 13 – CONDENSED PARENT COMPANY FINANCIAL INFORMATION

A summary of condensed financial information of the parent company as of December 31, 2013 and 2012 and for each of the three years in the period ended December 31, 2013 follows:

(Dollars in thousands)	2013		2012
CONDENSED BALANCE SHEETS
ASSETS
Cash deposited with subsidiary bank	$	598	$	388
Investment in subsidiary bank		51,596		51,858
Securities available-for-sale		128		69
Other assets		192		207
TOTAL ASSETS	$	52,514	$	52,522
LIABILITIES AND SHAREHOLDERS’ EQUITY
Total liabilities	$	103	$	69
Total shareholders’ equity		52,411		52,453
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	52,514	$	52,522

(Dollars in thousands)	2013			2012			2011
CONDENSED STATEMENTS OF INCOME
Interest on securities	$	2		$	2		$	1
Dividends from subsidiary		2,400			2,000			2,300
Total income		2,402			2,002			2,301
Operating expenses		356			354			336
Income before taxes and undistributed equity income of subsidiary		2,046			1,648			1,965
Income tax benefit		(121	)		(120	)		(115	)
Equity earnings in subsidiary, net of dividends		3,073			2,779			1,607
NET INCOME	$	5,240		$	4,547		$	3,687
COMPREHENSIVE INCOME	$	1,920		$	4,981		$	4,244

(Dollars in thousands)	2013			2012			2011
CONDENSED STATEMENTS OF CASH FLOWS
Cash flows from operating activities:
Net income	$	5,240		$	4,547		$	3,687
Adjustments to reconcile net income to cash provided by operations:
Equity earnings in subsidiary, net of dividends		(3,073	)		(2,779	)		(1,607	)
Change in other assets, liabilities		42			49			48
Net cash provided by operating activities		2,209			1,817			2,128
Cash flows from investing activities:
Purchase of investment securities		(37	)		—			—
Net cash used in investing activities		(37	)		—			—
Cash flows from financing activities:
Cash dividends paid		(1,970	)		(1,969	)		(1,969	)
Cash received from exercise of stock options		8			5			—
Net cash used in financing activities		(1,962	)		(1,964	)		(1,969	)
Increase (decrease) in cash		210			(147	)		159
Cash at beginning of year		388			535			376
Cash at end of year	$	598		$	388		$	535

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Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

NOTE 18 – QUARTERLY FINANCIAL DATA (UNAUDITED)

The following is a summary of selected quarterly financial data (unaudited) for the years ended December 31:

(Dollars in thousands, except per share data)	Interest Income		Net Interest Income		Net Income		Basic Earnings Per Share		Diluted Earnings Per Share
2013
First quarter	$	5,300	$	4,692	$	1,362	$	0.50	$	0.50
Second quarter		5,173		4,592		1,247		0.45		0.45
Third quarter		5,235		4,677		1,407		0.51		0.51
Fourth quarter		5,430		4,922		1,224		0.45		0.45
2012
First quarter	$	5,132	$	4,313	$	1,055	$	0.39	$	0.39
Second quarter		5,151		4,397		1,141		0.41		0.41
Third quarter		5,148		4,426		1,231		0.45		0.45
Fourth quarter		5,153		4,470		1,120		0.41		0.41

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Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive (Loss) Income by Component Net of Tax (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized holding (loss) gain on available-for-sale securities arising during the period, Pretax	$ (3,195)	$ 657	$ 1,081
Amount reclassified for net gains included in net income, Pretax	(159)		(237)
Unrealized holding (loss) gain on available-for-sale securities arising during the period, Tax Effect	(1,656)	223	368
Amount reclassified for net gains included in net income, Tax Effect	(54)		(81)
Beginning balance, After-tax	1,864
Ending balance, After-tax	(1,456)	1,864
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, Pretax	2,823	2,166
Unrealized holding (loss) gain on available-for-sale securities arising during the period, Pretax	(3,195)	657
Amount reclassified for net gains included in net income, Pretax	(159)
Unrealized loss on securities transferred from available-for-sale to held-to-maturity, Pretax	(1,931)
Amortization of held-to-maturity discount resulting from transfer, Pretax	255
Total other comprehensive (loss) income, Pretax	(5,030)	657
Ending balance, Pretax	(2,207)	2,823
Beginning balance, Tax Effect	(959)	(736)
Unrealized holding (loss) gain on available-for-sale securities arising during the period, Tax Effect	1,086	(223)
Amount reclassified for net gains included in net income, Tax Effect	54
Unrealized loss on securities transferred from available-for-sale to held-to-maturity, Tax Effect	657
Amortization of held-to-maturity discount resulting from transfer, Tax Effect	(87)
Total other comprehensive (loss) income, Tax Effect	1,710	(223)
Ending balance, Tax Effect	751	(959)
Beginning balance, After-tax	1,864	1,430
Unrealized holding (loss) gain on available-for-sale securities arising during the period, After-tax	(2,109)	434
Amount reclassified for net gains included in net income, After-tax	(105)
Unrealized loss on securities transferred from available-for-sale to held-to-maturity, After-tax	(1,274)
Amortization of held-to-maturity discount resulting from transfer, After-tax	168
Total other comprehensive (loss) income, After-tax	(3,320)	434
Ending balance, After-tax	$ (1,456)	$ 1,864

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Securities - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013 Securities	Dec. 31, 2012 Security	Dec. 31, 2011
Investments Debt And Equity Securities [Abstract]
Market value of securities	$ 87,900,000	$ 79,200,000
Restricted stock investment in FHLB stock	5,000,000	5,000,000
Federal Reserve Bank stock	471,000	471,000
Number of securities sold during the period		0
Income tax provision applicable to realized gains	54,000		81,000
Income tax benefit on realized losses	$ 0	$ 0	$ 0
Number of securities in unrealized loss	73
Number of securities in continuous loss	7

XML

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Assets Measured on Recurring Basis

The following table presents the assets reported on the consolidated statements of financial condition at their fair value as of December 31, 2013 and December 31, 2012, by level within the fair value hierarchy.

(Dollars in thousands)	Level I		Level II		Level III		Total
	December 31, 2013
Assets:
Securities available-for-sale
U.S. Treasury security	$	997	$	—	$	—	$	997
U.S. Government agencies		—		22,301		—		22,301
Mortgage-backed securities of government agencies		—		54,535		—		54,535
Asset-backed securities of government agencies		—		2,775		—		2,775
State and political subdivisions		—		16,447		—		16,447
Corporate bonds		—		4,539		—		4,539
Total debt securities		997		100,597		—		101,594
Equity securities		128		—		—		128
Total available-for-sale securities	$	1,125	$	100,597	$	—	$	101,722
	December 31, 2012
Assets:
Securities available-for-sale
U.S. Treasury security	$	100	$	—	$	—	$	100
U.S. Government agencies		—		35,980		—		35,980
Mortgage-backed securities of government agencies		—		69,039		—		69,039
Asset-backed securities of government agencies		—		2,823		—		2,823
State and political subdivisions		—		16,883		—		16,883
Corporate bonds		—		4,397		—		4,397
Total debt securities		100		129,122		—		129,222
Equity securities		69		—		—		69
Total available-for-sale securities	$	169	$	129,122	$	—	$	129,291

Schedule of Fair Value of Assets Measured on Nonrecurring Basis

The following table presents the assets measured on a nonrecurring basis on the consolidated balance sheets at their fair value as of December 31, 2013 and December 31, 2012, by level within the fair value hierarchy.

(Dollars in thousands)	Level I		Level II		Level III		Total
	December 31, 2013
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	9,856	$	9,856
Mortgage servicing rights		—		—		225		225
	December 31, 2012
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	9,412	$	9,412
Other real estate owned		—		—		25		25
Mortgage servicing rights		—		—		214		214

Schedule of Quantitative Information of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level III inputs to determine fair value:

	Quantitative Information about Level III Fair Value  Measurements
(Dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
	December 31, 2013
Impaired loans	$	8,663	Discounted cash flow	Remaining term Discount rate	3 mos to 29 yrs / (62 mos) 7.1% to 12% / (7.5%)
		1,193	Appraisal of collateral1,3	Appraisal  adjustments2 Liquidation expense2	–20% to –25% –10%
Mortgage servicing rights		225	Discounted cash flow	Remaining term Discount rate	12 mos to 30 yrs / (244 mos) 1.5% / (1.5%)

	Quantitative Information about Level III Fair Value Measurements
(Dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
	December 31, 2012
Impaired loans	$	7,260	Discounted cash flow	Remaining term Discount rate	4 mos to 29 yrs / (74 mos) 7.5% to 12% / (7.8%)
		2,152	Appraisal of collateral1,3	Appraisal  adjustments2 Liquidation expense2	–20% to –35% –10%
Other real estate owned		25	Appraisal of collateral1,3	Management discount for property type3	0% to –67%
Mortgage servicing rights		214	Discounted cash flow	Remaining term Discount rate	24 mos to 30 yrs / (244 mos) 1.5% / (1.5%)

¹  Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various inputs which are not identifiable.

²  Appraisals may be adjusted by management for qualitative factors such as estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

³  Includes qualitative adjustments by management and estimated liquidation expenses.

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract]
Net income	$ 5,240	$ 4,547	$ 3,687
Other comprehensive income (loss)
Unrealized gains (losses) arising during the period	(3,195)	657	1,081
Unrealized losses on held to maturity transfer	(1,931)
Amounts reclassified from accumulated other comprehensive income, held-to-maturity	255
Income tax effect	1,656	(223)	(368)
Reclassification adjustment for gains on available for sale securities included in net income	(159)		(237)
Income tax effect	54		81
Other comprehensive income (loss)	(3,320)	434	557
Total comprehensive income	$ 1,920	$ 4,981	$ 4,244

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Condensed Parent Company Financial Information - Condensed Statements of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net income	$ 5,240	$ 4,547	$ 3,687
Adjustments to reconcile net income to cash provided by operations:
Other assets and liabilities	339	831	415
Net cash provided by operating activities	6,949	7,064	5,774
Cash flows from investing activities:
Purchase of investment securities	(55,693)	(82,382)	(95,542)
Net cash provided by (used in) investing activities	(39,282)	(52,931)	13,138
Cash flows from financing activities:
Cash dividends paid	(1,970)	(1,969)	(1,969)
Cash received from exercise of stock options	8	5
Net cash provided by financing activities	8,054	30,487	14,986
Increase (decrease) in cash	(24,279)	(15,380)	33,898
Parent Company [Member]
Cash flows from operating activities:
Net income	5,240	4,547	3,687
Adjustments to reconcile net income to cash provided by operations:
Equity earnings in subsidiary, net of dividends	(3,073)	(2,779)	(1,607)
Other assets and liabilities	42	49	48
Net cash provided by operating activities	2,209	1,817	2,128
Cash flows from investing activities:
Purchase of investment securities	(37)
Net cash provided by (used in) investing activities	(37)
Cash flows from financing activities:
Cash dividends paid	(1,970)	(1,969)	(1,969)
Cash received from exercise of stock options	8	5
Net cash provided by financing activities	(1,962)	(1,964)	(1,969)
Increase (decrease) in cash	210	(147)	159
Cash at beginning of year	388	535	376
Cash at end of year	$ 598	$ 388	$ 535

XML

Securities

12 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

Securities

NOTE 2 – SECURITIES

Securities consist of the following at December 31:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
2013
Available-for-sale:
U.S. Treasury security	$	1,005	$	—	$	8	$	997
U.S. Government agencies		22,999		8		706		22,301
Mortgage-backed securities of government agencies		54,455		536		691		54,300
Other mortgage-backed securities		230		5		—		235
Asset-backed securities of government agencies		2,739		36		—		2,775
State and political subdivisions		16,219		371		143		16,447
Corporate bonds		4,500		44		5		4,539
Equity securities		106		23		1		128
Total available-for-sale		102,253		1,023		1,554		101,722
Held-to-maturity securities
U.S. Government agencies		19,186		—		828		18,358
Mortgage-backed securities of government agencies		25,164		—		879		24,285
Total held-to-maturity		44,350		—		1,707		42,643
Restricted stock		5,463		—		—		5,463
Total securities	$	152,066	$	1,023	$	3,261	$	149,828
2012
Available-for-sale:
U.S. Treasury security	$	100	$	—	$	—	$	100
U.S. Government agencies		35,996		27		43		35,980
Mortgage-backed securities of government agencies		66,588		2,107		—		68,695
Other mortgage-backed securities		345		—		1		344
Asset-backed securities of government agencies		2,862		—		39		2,823
State and political subdivisions		16,194		701		12		16,883
Corporate bonds		4,313		112		28		4,397
Equity securities		69		9		9		69
Total available-for-sale		126,467		2,956		132		129,291
Restricted stock		5,463		—		—		5,463
Total securities	$	131,930	$	2,956	$	132	$	134,754

The amortized cost and fair value of securities at December 31, 2013, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(Dollars in thousands)	Amortized Cost		Fair Value
Available-for-sale:
Due in one year or less	$	855	$	875
Due after one through five years		17,354		17,500
Due after five through ten years		22,455		22,033
Due after ten years		61,483		61,186
Total debt securities available-for-sale	$	102,147	$	101,594
Held-to-maturity:
Due in one year or less	$	—	$	—
Due after one through five years		—		—
Due after five through ten years		7,717		7,568
Due after ten years		36,633		35,075
Total debt securities held-to-maturity	$	44,350	$	42,643

Securities with a market value of approximately $87.9 million and $79.2 million were pledged at December 31, 2013 and 2012, respectively, to secure public deposits, as well as other deposits and borrowings as required or permitted by law.

Restricted stock primarily consists of investments in FHLB and Federal Reserve Bank stock. The Bank’s investment in FHLB stock amounted to $5.0 million at December 31, 2013 and 2012. Federal Reserve Bank stock was $471 thousand at December 31, 2013 and 2012.

The following table shows the proceeds from sales of available-for-sale securities and the gross realized gains and losses on the sales of those securities that have been included in earnings as a result of the sales in 2013 and 2011. There were no securities sold during 2012.

(Dollars in thousands)	2013		2011
Proceeds	$	4,309	$	3,244
Realized gains	$	159	$	237
Realized losses		—		—
Impairment losses		—		—
Net securities gains	$	159	$	237

The income tax provision applicable to realized gains amounted to $54 thousand in 2013 and $81 thousand in 2011. There were no tax benefits recognized from gross realized losses in 2013, 2012 or 2011.

The following table presents gross unrealized losses and fair value of securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31:

	Securities in a Continuous Unrealized Loss Position
	Less Than 12 Months				12 Months Or More				Total
(Dollars in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
2013
Available-for-sale
U.S. Treasury security	$	8	$	997	$	—	$	—	$	8	$	997
U.S. Government agencies		590		15,409		116		1,884		706		17,293
Mortgage-backed securities of government agencies		691		29,938		—		—		691		29,938
State and political subdivisions		122		3,522		21		233		143		3,755
Corporate bonds		4		1,163		1		499		5		1,662
Equity securities		—		—		1		1		1		1
Held-to-maturity
U.S. Government agencies		771		14,559		57		1,799		828		16,358
Mortgage-backed securities of government agencies		879		20,149		—		—		879		20,149
Total temporarily impaired securities	$	3,065	$	85,737	$	196	$	4,416	$	3,261	$	90,153
2012
Available-for-sale
U.S. Government agencies	$	43	$	15,957	$	—	$	—	$	43	$	15,957
Other mortgage-backed securities		1		344		—		—		1		344
Asset-backed securities of government agencies		39		1,833		—		—		39		1,833
State and political subdivisions		12		1,737		—		—		12		1,737
Corporate bonds		4		366		24		975		28		1,341
Total debt securities		99		20,237		24		975		123		21,212
Equity securities		—		—		9		45		9		45
Total temporarily impaired securities	$	99	$	20,237	$	33	$	1,020	$	132	$	21,257

There were seventy-three (73) securities in an unrealized loss position at December 31, 2013, seven (7) of which were in a continuous loss position for twelve or more months. At least quarterly, the Company conducts a comprehensive security-level impairment assessment. The assessments are based on the nature of the securities, the extent and duration of the securities, the extent and duration of the loss, management’s intent to sell or if it is more likely than not that management will be required to sell a security before recovery of its amortized cost basis, which may be maturity. Management believes the Company will fully recover the cost of these securities and it does not intend to sell these securities and likely will not be required to sell them before the anticipated recovery of the remaining amortized cost basis, which may be maturity. As a result, management concluded that these securities were not other-than-temporarily impaired at December 31, 2013.

XML

Loans - Summary of Troubled Debt Restructurings (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Contract	Dec. 31, 2012 Contract
Financing Receivable, Modifications [Line Items]
Number Of Loans Restructured	6	11
Pre-Modification Recorded Investment	$ 347	$ 975
Post-Modification Recorded Investment	347	975
Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number Of Loans Restructured	3	9
Pre-Modification Recorded Investment	264	798
Post-Modification Recorded Investment	264	798
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number Of Loans Restructured	3	2
Pre-Modification Recorded Investment	83	177
Post-Modification Recorded Investment	$ 83	$ 177

XML

Related-Party Transactions - Summary of Analysis of Activity of Related-Party Loans (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Related Party Transactions [Abstract]
Balance at beginning of year	$ 6,218
New loans and advances	315
Repayments, including loans sold	1,441
Balance at end of year	$ 5,092

XML

Borrowings - Short-Term Borrowings (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Equity Method Investments And Cost Method Investments [Abstract]
Balance at year-end	$ 48,671	$ 43,992
Average balance outstanding	45,330	40,893
Maximum month-end balance	$ 48,671	$ 43,992
Weighted-average rate at year-end	0.15%	0.20%
Weighted-average rate during the year	0.15%	0.22%

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Use of Estimates in Preparing Financial Statements

USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS

In preparing Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Balance Sheets and reported amounts of revenues and expenses during each reporting period. Actual results could differ from those estimates. The most significant estimates susceptible to change in the near term relate to management’s determination of the allowance for loan losses and the fair value of financial instruments.

Principles of Consolidation

PRINCIPLES OF CONSOLIDATION

The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation.

The Bank has established a trust department and the assets held by the Bank in fiduciary or agency capacities for its customers are not included in the Consolidated Balance Sheets as such items are not assets of the Bank.

Cash and Cash Equivalents

CASH AND CASH EQUIVALENTS

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand and amounts due from banks which mature overnight or within ninety days.

Cash Reserve Requirements

CASH RESERVE REQUIREMENTS

The Bank is required by the Federal Reserve to maintain reserves consisting of cash on hand and noninterest-earning balances on deposit with the Federal Reserve Bank. There was no required reserve balance at December 31, 2013 and 2012.

Securities

SECURITIES

Securities designated as available-for-sale are carried at fair value with unrealized gains and losses on such securities, net of applicable income taxes, recognized as other comprehensive income (loss). During 2013, approximately $39 million par value U.S. Government agencies and mortgage-backed securities of government agencies were transferred from available-for-sale to held-to-maturity. At year end, 28% of the total investment portfolio was classified as held-to-maturity. The volatility in interest rates that has occurred recently does not have as much impact on other comprehensive income as if the entire portfolio was included in the available-for sale category. The held-to-maturity securities are carried at their fair value on the date of transfer or at purchase value if security purchases are designated as held-to-maturity.

The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity based on the interest method. Such amortization and accretion is included in interest and dividends on securities.

Gains and losses on sales of securities are accounted for on a trade date basis, using the specific identification method, and are included in noninterest income. Securities are periodically reviewed for other-than-temporary impairment based upon a number of factors, including, but not limited to, the length of time and extent to which the market value has been less than cost, the financial condition of the underlying issuer, the receipt of principal and interest according to the contractual terms, the ability of the issuer to meet contractual obligations, the likelihood of the security’s ability to recover any decline in its market value and management’s intent and ability to hold the security for a period of time sufficient to allow for a recovery in market value. Among the factors that are considered in determining management’s intent and ability to hold the security is a review of the Company’s capital adequacy, interest rate risk position and liquidity. The assessment of a security’s ability to recover any decline in market value, the ability of the issuer to meet contractual obligations and management’s intent and ability to hold the security requires considerable judgment. A decline in value that is considered to be other-than-temporary is recorded as a loss within non-interest income in the Consolidated Statements of Income.

Investments in Federal Home Loan Bank of Cincinnati (“FHLB”) and Federal Reserve Bank stock are classified as restricted stock, carried at cost, and evaluated for impairment. The Bank is required to maintain an investment in common stock of the FHLB and Federal Reserve Bank because the Bank is a member of the FHLB and the Federal Reserve System. We consider these stocks to be nonmarketable equity securities.

Federal Home Loan Bank of Cincinnati reported profits for 2013 and 2012, remains in compliance with regulatory capital and liquidity requirements, continues to pay dividends on the stock and redeems its stock at par value. With consideration given to these factors, management concluded that the stock was not impaired at December 31, 2013 or 2012.

Loans

LOANS

Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, generally are stated at their outstanding principal amount, adjusted for charge-offs, the allowance for loan losses and any deferred loan fees or costs on originated loans. Interest is accrued based upon the daily outstanding principal balance. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield over the life of the related loan.

Interest income is not reported when full repayment is in doubt, typically when the loan is impaired or payments are past due over 90 days. All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

At origination, a determination is made whether a loan will be held in the Bank’s portfolio or is intended for sale in the secondary market. Mortgage loans held for sale are recorded at the lower of the aggregate cost or fair value. Generally these loans are held for sale for less than three days. The Bank includes gains and losses on sales of the loans held for sale when the sale is completed.

Allowance for Loan Losses

ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect borrowers’ ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate, and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment disclosures.

Other Real Estate Owned

OTHER REAL ESTATE OWNED

Other real estate acquired through or in lieu of foreclosure is initially recorded at fair value, less estimated costs to sell, and any loan balance in excess of fair value is charged to the allowance for loan losses. Subsequent valuations are periodically performed and write-downs are included in other operating expense, as are gains or losses upon sale and expenses related to maintenance of the properties. Other real estate owned amounted to $0 and $25 thousand at December 31, 2013 and 2012, respectively.

Premises and Equipment

PREMISES AND EQUIPMENT

Premises and equipment is stated at cost less accumulated depreciation and amortization. Upon the sale or disposition of the assets, the difference between the depreciated cost and proceeds is charged or credited to income. Depreciation and amortization is determined based on the estimated useful lives of the individual assets (typically 20 to 40 years for buildings and 3 to 10 years for equipment) and is computed using the straight-line method.

Goodwill and Core Deposit in Intangible Assets

GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS

Goodwill is not amortized, but is tested at least annually for impairment in the fourth quarter or more frequently if indicators of impairment are present. The evaluation for impairment involves comparing the estimated current fair value of the reporting unit to its carrying value, including goodwill. If the estimated current fair value of a reporting unit exceeds its carrying value, no additional testing is required and an impairment loss is not recorded. CSB uses market capitalization and multiples of tangible book value methods to determine the estimated current fair value of its reporting unit. Based on this analysis no impairment was recorded in 2013 or 2012.

The core deposit intangible assets are assigned useful lives, which are amortized on an accelerated basis over their weighted average lives. The Company periodically reviews the intangible asset for impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.

Mortgage Servicing Rights

MORTGAGE SERVICING RIGHTS

Mortgage servicing rights (“MSRs”) represent the right to service loans for third party investors. MSRs are recognized as a separate asset upon the sale of mortgage loans to a third party investor with the servicing rights retained by CSB. Originated MSRs are recorded at allocated fair value at the time of the sale of the loans to the third party investor. MSRs are amortized in proportion to and over the estimated period of net servicing income. MSRs are carried at amortized cost, less a valuation allowance for impairment, if any. MSRs are evaluated on a discounted earnings basis to determine the present value of future earnings of the underlying serviced mortgages. All assumptions are reviewed annually or more frequently, if necessary, and adjusted to reflect current and anticipated market conditions.

Bank-owned Life Insurance

BANK-OWNED LIFE INSURANCE

The cash surrender value of these policies is included as an asset on the Consolidated Balance Sheets and any increases in the cash surrender value are recorded as noninterest income on the Consolidated Statements of Income. In the event of the death of an insured individual under these policies, the Company would receive a death benefit, which would be recorded as noninterest income.

Repurchase Agreements

REPURCHASE AGREEMENTS

Substantially all securities sold under repurchase agreements represent amounts advanced by various customers. Securities owned by the Bank are pledged to cover those obligations. These repurchase agreements are not deposits and are not covered by federal deposit insurance.

Advertising Costs

ADVERTISING COSTS

All advertising costs are expensed as incurred. Advertising expenses amounted to $175 thousand, $190 thousand and $175 thousand for the years ended 2013, 2012 and 2011 respectively.

Federal Income Taxes

FEDERAL INCOME TAXES

The Company and its subsidiaries file a consolidated tax return. Deferred income taxes are provided on temporary differences between financial statement and income tax reporting. Temporary differences are differences between the amounts of assets and liabilities reported for financial statement purposes and their tax bases. Deferred tax assets are recognized for temporary differences that will be deductible in future years’ tax returns and for operating loss and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax liabilities are recognized for temporary differences that will be taxable in future years’ tax returns.

The Bank, domiciled in Ohio, is not currently subject to state and local income taxes.

Stock-based Compensation

STOCK-BASED COMPENSATION

The Company sponsored a stock-based compensation plan, administered by a committee. The incentive stock option plan expired in 2012. The Company recorded no stock-based compensation expense for 2013, 2012 or 2011. There was no income tax benefit recognized in the accompanying Consolidated Statements of Income related to stock-based compensation in 2013, 2012 or 2011. Shares issued in connection with stock option exercises were issued from available treasury shares in 2013.

As of December 31, 2013, there was no unrecognized compensation cost related to unvested share-based compensation awards outstanding. All shares are vested.

The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the option and each vesting date. CSB estimates the fair value of stock options on the date of the grant using the Black-Scholes option pricing model. The model requires the use of numerous assumptions, many of which are highly subjective in nature. There were no option grants for the years ended December 31, 2013 and 2012.

Comprehensive Income

COMPREHENSIVE INCOME

The Company includes recognized revenue, expenses, gains and losses in net income. Although certain changes in assets and liabilities such as unrealized gains and losses on available-for-sale securities are reported as a separate component of the equity section of the Consolidated Balance Sheets, these items along with net income are components of comprehensive income.

Transfers of Financial Assets

TRANSFERS OF FINANCIAL ASSETS

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Per Share Data

PER SHARE DATA

Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during each year. Diluted income per common share includes the dilutive effect of additional potential common shares issuable under stock options.

The weighted average number of common shares outstanding for basic and diluted earnings per share computations was as follows:

	2013			2012			2011
Weighted average common shares		2,980,602			2,980,602			2,980,602
Average treasury shares		(244,129	)		(245,713	)		(245,803	)
Total weighted average common shares outstanding (basic)		2,736,473			2,734,889			2,734,799
Dilutive effect of assumed exercise of stock options		2,004			252			39
Weighted average common shares outstanding (diluted)		2,738,477			2,735,141			2,734,838

Dividends per share are based on the number of shares outstanding at the declaration date.

There were no stock options that were antidilutive at December 31, 2013. Options to purchase an aggregate of 29,760 common shares at $18.00 per share were outstanding at December 31, 2012 and 2011 and were antidilutive.

Accounting Developments

ACCOUNTING DEVELOPMENTS

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The standard requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. The new requirements took effect for public companies in fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted this standard on January 1, 2013. The effect of adopting this standard increased our disclosure surrounding reclassification items out of accumulated other comprehensive income.

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

Reclassification of Comparative Amounts

RECLASSIFICATION OF COMPARATIVE AMOUNTS

Certain comparative amounts from the prior years have been reclassified to conform to current year classifications. Such classifications had no effect on net income or shareholders’ equity.

XML

Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Federal income tax effective rate	34.00%
Net operating loss tax carry-forward	$ 1,400,000
Operating loss carryforward expiration	2026
Capital loss carryforward expiration	2014
Liability for uncertain tax position	0
Unrecognized tax benefits	$ 0

XML

Related-Party Transactions (Tables)

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Summary of Analysis of Activity of Related-Party Loans

The following is an analysis of activity of related-party loans for the year end December 31, 2013:

(Dollars in thousands)
Balance at beginning of year	$	6,218
New loans and advances		315
Repayments, including loans sold		1,441
Balance at end of year	$	5,092

XML

Regulatory Matters

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Regulatory Matters

NOTE 12 – REGULATORY MATTERS

The Company (on a consolidated basis) and Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the following table) of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average assets (as defined). Management believes, as of December 31, 2013 and 2012, that the Company and Bank met or exceeded all capital adequacy requirements to which they are subject.

As of December 31, 2013, the most recent notification from federal and state banking agencies categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized” an institution must maintain minimum Total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no known conditions or events since that notification that Management believes have changed the Bank’s category.

The actual capital amounts and ratios of the Company and Bank as of December 31, are presented in the following tables:

						Minimum					Minimum Required
						Required For					To Be Well Capitalized
						Capital Adequacy					Under Prompt
	Actual					Purposes					Corrective Action
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
2013
Total capital (to risk-weighted assets)
Consolidated	$	53,268		13.6	%	$	31,416		8.0	%	$	39,270		10.0	%
Bank		52,458		13.4			31,392		8.0			39,240		10.0
Tier I capital (to risk-weighted assets)
Consolidated		48,357		12.3			15,708		4.0			23,562		6.0
Bank		47,558		12.1			15,696		4.0			23,544		6.0
Tier I capital (to average assets)
Consolidated		48,357		8.2			23,550		4.0			29,438		5.0
Bank		47,558		8.1			23,544		4.0			29,430		5.0
2012
Total capital (to risk-weighted assets)
Consolidated	$	49,534		13.3	%	$	29,707		8.0	%	$	37,134		10.0	%
Bank		48,940		13.2			29,695		8.0			37,118		10.0
Tier I capital (to risk-weighted assets)
Consolidated		44,946		12.1			14,854		4.0			22,280		6.0
Bank		44,352		12.0			14,847		4.0			22,271		6.0
Tier I capital (to average assets)
Consolidated		44,946		7.9			22,794		4.0			28,493		5.0
Bank		44,352		7.8			22,788		4.0			28,485		5.0

The Company’s primary source of funds with which to pay dividends are dividends received from the Bank. The payment of dividends by the Bank to the Company is subject to restrictions by its regulatory agencies. These restrictions generally limit dividends to current year net income and prior two-years’ net retained earnings. Also, dividends may not reduce capital levels below the minimum regulatory requirements disclosed in the prior table. Under these provisions, at January 1, 2014, the Bank could dividend $7.5 million to the Company. The Company does not anticipate the financial need to obtain regulatory approval due to its current cash balances and ability to access the credit markets. Federal law prevents the Company from borrowing from the Bank unless loans are secured by specific obligations. Further, such secured loans are limited to an amount not exceeding ten percent of the Bank’s common stock and capital surplus.