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, 2014

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, 2014, the aggregate market value of the voting common equity held by non-affiliates of the registrant, based on a share price of $20.23 per common share (such price being the last trade price on such date) was $49.6 million.

At March 23, 2015, there were outstanding 2,739,405 of the registrant’s common shares, $6.25 par value.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of CSB Bancorp Inc.’s 2014 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 23, 2015 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. The Company’s market area experienced increasing economic activity in 2014 following five years of comparatively slow recovery. Unemployment levels in Holmes County, reported at 2.9% in December 2014, 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 2014 and 2013.

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Residential real estate values have slowly recovered with low mortgage rates and high affordability. Consumer spending on durable goods, such as autos grew, helped by job growth, available financing and the near record age of existing vehicle stock. The Federal Reserve Bank of Cleveland reported during 2013 and 2014 that a large portion of Ohio’s growth activity is in manufacturing and energy-related industries. The Company’s market is adjacent to areas of significant shale activity. If oil prices were to experience a sustained decline, mining and manufacturing jobs in the oil and gas business, which had been expanding in the previous two years, may also decline

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 if any, 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 occurs.

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. 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 as-completed 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 repay 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, 2014, 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, 2014, the Company had 186 employees, 146 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 permit 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 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.

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, securities firms and insurance companies that have elected to become financial holding companies may 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 100 F Street NE, 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 a bank holding company that has registered with the Federal Reserve Board (“FRB”) as a financial holding company under the Bank Holding Company Act, as amended (the “BHC Act”). Pursuant to the Gramm-Leach-Bliley Act of 1999 (“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.

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As a bank holding company and financial holding company, CSB 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. In addition, the Bank is subject to regulations promulgated by the Consumer Financial Protection Bureau (the “CFPB”) established by the Dodd-Frank Wall Street Reform and Consumer Protection Act enacted in July 2010 (the “Dodd-Frank Act”).

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 Act. The Dodd-Frank Act created many new restrictions and an expanded framework of regulatory oversight for financial institutions, including depository institutions. The Company is closely monitoring all relevant sections of the Dodd-Frank Act to ensure continued compliance with these regulatory requirements.

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 Bank Holding Companies

As a bank holding company and 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.

The FRB has extensive enforcement authority over bank holding companies, including the ability to assess civil money penalties, issue cease and desist orders and require that a bank 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 bank 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 bank 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 bank 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.

5

Regulatory Capital

The FRB has adopted risk-based capital guidelines for bank holding companies and state member banks, designed to absorb losses. 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.

Prior to January 1, 2015, the guidelines included a minimum for the ratio of total capital to risk-weighted assets of 8%, with at least half of the ratio composed 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, less goodwill and certain other intangible assets (known as “Tier 1” risk-based capital). The guidelines also provided for a minimum ratio of Tier 1 capital to average assets, or “leverage ratio,” of 3% for financial holding companies and bank holding companies that meet certain criteria, including having the highest regulatory rating, and 4% for all other financial holding companies and bank holding companies.

The risk-based capital guidelines adopted by the federal banking agencies are based on the “International Convergence of Capital Measurement and Capital Standard” (Basel I), published by the Basel Committee on Banking Supervision in 1988. The new Basel III Capital Rules (“Basel III”) became effective on January 1, 2015, whereas a new capital conservation buffer and deductions from common equity capital phase in from January 1, 2016, through January 1, 2019, and most deductions from common equity tier 1 capital will phase in from January 1, 2015, through January 1, 2019.

The new rules include (a) a new common equity tier 1 capital ratio of at least 4.5 percent, (b) a Tier 1 capital ratio of at least 6.0 percent, rather than the former 4.0 percent, (c) a minimum total capital ratio that remains at 8.0 percent, and (d) a minimum leverage ratio of 4%.

Common equity for the common equity tier 1 capital ratio includes common stock (plus related surplus) and retained earnings, plus limited amounts of minority interests in the form of common stock, less the majority of certain regulatory deductions.

Tier 1 capital includes common equity as defined for the common equity tier 1 capital ratio, plus certain non-cumulative preferred stock and related surplus, cumulative preferred stock and related surplus and trust preferred securities that have been grandfathered (but which are not permitted going forward), and limited amounts of minority interests in the form of additional Tier 1 capital instruments, less certain deductions.

Tier 2 capital, which can be included in the total capital ratio, includes certain capital instruments (such as subordinated debt) and limited amounts of the allowance for loan and lease losses, subject to new eligibility criteria, less applicable deductions.

The deductions from common equity tier 1 capital include goodwill and other intangibles, certain deferred tax assets, mortgage-servicing assets above certain levels, gains on sale in connection with a securitization, investments in a banking organization’s own capital instruments and investments in the capital of unconsolidated financial institutions (above certain levels). The deductions phase in from 2015 through 2019.

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 several risk weights 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. Some of the risk weightings have been changed effective January 1, 2015.

The new rules also place restrictions on the payment of capital distributions, including dividends, and certain discretionary bonus payments to executive officers if the company does not hold a capital conservation buffer of greater than 2.5 percent composed of common equity tier 1 capital above its minimum risk-based capital requirements, or if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5 percent at the beginning of the quarter. The capital conservation buffer phases in starting on January 1, 2016, at .625%.

The implementation of Basel III is not expected to have a material impact on CSB’s or the Bank’s capital ratios.

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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.

Effective January 1, 2015, in order to be “well-capitalized,” a bank must have a common equity tier 1 capital ratio of 6.5%, a total risk-based capital ratio of at least 10%, a Tier 1 risk-based capital ratio of at least 8% 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, 2014, the Bank met the ratio requirements in effect at that date to be deemed “well-capitalized.” See Note 12 of the Notes to Consolidated Financial Statements located on page 51 of CSB’s 2014 Annual Report, which is incorporated herein by reference. Management of the Company believes the Bank also meets the capital requirements to be deemed “well-capitalized” under the new guidelines.

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 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. 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. CSB is particularly affected by the policies of the FRB, which has regulatory authority over the supply of money and credit in the United States.

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.

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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 that 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, 2014, approximately $9.5 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 2014 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 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 to be compliant with the requirements of the Patriot Act.

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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. CSB is exempt from the requirement for external accountant attestation on internal controls, pursuant to provisions of the Dodd-Frank Act. Management’s assessment of internal controls over financial reporting is located on page 23 of the CSB 2014 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.

The company’s board and management believe its policies and procedures related to Executive and Incentive Compensation are compliant with the Joint Guidance.

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 2014 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 2014 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 2014 Annual Report is incorporated by reference herein.

Investment Portfolio

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

(Dollars in thousands)	2014		2013		2012
Securites available-for-sale, at fair value
U.S. Treasury security	$	1,000	$	997	$	100
U.S. Government agencies		25,079		22,301		35,980
Mortgage-backed securities of government agencies		48,347		54,300		68,695
Other mortgage-backed securities		141		235		344
Asset-backed securities of government agencies		2,604		2,775		2,823
State and political subdivisions		18,267		16,447		16,883
Corporate bonds		4,542		4,539		4,397
Equity securities		128		128		69
Total	$	100,108	$	101,722	$	129,291
Securities held-to-maturity, at fair value
U.S. Government agencies	$	16,635	$	18,358	$	—
Mortgage-backed securities of government agencies		22,315		24,285		—
Total	$	38,950	$	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, 2014:

	One Year or Less					After One Year Through Five Years					Maturing After Five Years Through Ten Years					After Ten Years					Total
(Dollars in thousands)	Amortized Cost		Yield			Amortized Cost		Yield			Amortized Cost		Yield			Amortized Cost		Yield			Amortized Cost		Yield
Available-for-sale:
U.S. Treasury	$	—		—	%	$	1,004		0.72	%	$	—		—	%	$	—		—	%	$	1,004		0.72	%
U.S. Government agencies		2,000		0.49			10,007		1.54			13,221		1.83			—		—			25,228		1.61
Mortgage-backed securities of government agencies		108		1.81			3		6.16			2,205		2.31			45,380		2.47			47,696		2.47
Other mortgage-backed securities		—		—			139		5.32			—		—			—		—			139		5.32
Asset-backed securities of government agencies		—		—			—		—			—		—			2,606		0.99			2,606		0.99
State and political subdivisions		1,543		3.33			6,138		2.98			7,288		2.75			2,909		2.97			17,878		2.92
Corporate bonds		998		1.74			2,930		2.32			575		1.03			—		—			4,503		2.03
Total	$	4,649		1.73	%	$	20,221		2.08	%	$	23,289		2.14	%	$	50,895		2.42	%	$	99,054		2.26	%
Held-to-maturity:
U.S. Government agencies	$	—		—	%	$	—		—	%	$	8,692		2.22	%	$	7,651		2.26	%	$	16,343		2.24	%
Mortgage-backed securities of government agencies		—		—			—		—			—		—			21,973		1.85			21,973		1.85
Total	$	—		—	%	$	—		—	%	$	8,692		2.22	%	$	29,624		1.95	%	$	38,316		2.01	%

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)	2014		2013		2012		2011		2010
Commercial	$	123,813	$	117,478	$	104,899	$	89,828	$	78,540
Commercial real estate		139,695		129,828		119,192		106,332		104,829
Residential real estate		121,684		111,445		110,412		103,518		108,832
Construction and land development		17,446		13,444		23,358		18,061		16,515
Consumer		7,913		6,687		6,480		6,216		6,715
Total loans	$	410,551	$	378,882	$	364,341	$	323,955	$	315,431

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, 2014:

	Maturing
(Dollars in thousands)	One Year or Less		One Through Five Years		After Five Years		Total
Commercial	$	60,818	$	29,479	$	33,516	$	123,813
Commercial real estate		1,241		14,412		124,042		139,695
Construction and land development		6,035		110		11,301		17,446
Total	$	68,094	$	44,001	$	168,859	$	280,954

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, 2014.

(Dollars in thousands)	Fixed Rate		Variable Rate
Total commercial, commercial real estate and construction and land development loans due after one year	$	34,489	$	178,371

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

(Dollars in thousand)	2014		2013		2012		2011		2010
Loans accounted for on a nonaccural basis	$	3,668	$	2,234	$	3,206	$	2,908	$	3,905
Accruing loans that are contractually past due 90 days or more as to interest or principal payments		281		1,036		131		581		685
Total	$	3,949	$	3,270	$	3,337	$	3,489	$	4,590

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.

12

Information regarding impaired loans at December 31 is as follows:

(Dollars in thousands)	2014		2013		2012
Loans acquired with credit imparment	$	—	$	—	$	—
Total recorded investment of impaired loans		9,219		10,655		10,210
Less portion for which no allowance for loan loss is allocated		7,724		907		1,975
Portion of impaired loan balance for which an allowance for loan losses is allocated		1,495		9,748		8,235
Portion of allowance for loan losses allocated to the impaired loan balance at December 31		184		784		779

For the year ended December 31, 2014, interest income recognized on impaired loans amounted to $359 thousand, while $559 thousand would have been recognized had the loans been performing under their contractual terms. 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.

Impaired loans are comprised of commercial, commercial real estate and residential 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, 2014, 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, 2014, these amounts, including impaired and nonperforming loans, amounted to $10.4 million of substandard loans and $0 doubtful loans.

As of December 31, 2014, 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)	2014			2013			2012			2011			2010
LOANS
Average loans outstanding during period	$	405,973		$	374,821		$	342,868		$	318,781		$	313,549
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	5,085		$	4,580		$	4,082		$	4,031		$	4,060
Loans charged-off:
Commercial		(1,005	)		(190	)		(29	)		(487	)		(479	)
Commercial real estate		(379	)		(108	)		(283	)		(68	)		(187	)
Residential real estate		(27	)		(82	)		(106	)		(297	)		(488	)
Construction and land development		—			—			—			(41	)		(143	)
Consumer		(11	)		(48	)		(89	)		(121	)		(92	)
Total loans charged-off		(1,422	)		(428	)		(507	)		(1,014	)		(1,389	)
Recoveries of loans previously charged-off:
Commercial		28			25			16			38			93
Commercial real estate		8			—			—			—			—
Residential real estate		25			18			102			19			—
Construction and land development		—			—			—			—			—
Consumer		14			50			64			58			32
Total loans recoveries		75			93			182			115			125
Net loans charged-off		(1,347	)		(335	)		(325	)		(899	)		(1,264	)
Provision charged to operating expense		643			840			823			950			1,235
Balance at end of period	$	4,381		$	5,085		$	4,580		$	4,082		$	4,031
Ratio of net charge-offs to average loans outstanding for period		0.33	%		0.09	%		0.09	%		0.28	%		0.40	%

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, 2014					December 31, 2013					December 31, 2012					December 31, 2011					December 31, 2010
Commercial	$	1,289		30.16	%	$	1,219		31.00	%	$	933		28.79	%	$	1,024		27.73	%	$	1,179		24.90	%
Commercial real estate		1,524		34.02			1,872		34.27			1,902		32.71			1,673		32.82			1,183		33.23
Residential real estate		1,039		29.64			1,205		29.41			1,096		30.30			894		31.95			1,057		34.50
Construction & land development		142		4.25			178		3.55			253		6.41			180		5.58			213		5.24
Consumer		60		1.93			91		1.77			76		1.79			78		1.92			80		2.13
Unallocated		327					520					320					233					319
Total	$	4,381		100.00	%	$	5,085		100.00	%	$	4,580		100.00	%	$	4,082		100.00	%	$	4,031		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						Average Rate Paid
	Year ended December 31,						Year ended December 31,
(Dollars in thousands)	2014		2013		2012		2014			2013			2012
Noninterest-bearing demand	$	124,525	$	106,769	$	91,148		N/A			N/A			N/A
Interest-bearing demand		73,307		70,648		63,346		0.05	%		0.06	%		0.08	%
Savings deposits		151,822		141,638		135,035		0.09			0.10			0.17
Time deposits		129,676		149,340		163,997		0.77			1.03			1.25
Total deposits	$	479,330	$	468,395	$	453,526

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, 2014:

(Dollars in thousands)
Three months or less	$	5,986
Over three through six months		15,852
Over six through twelve months		13,240
Over twelve months		8,052
Total	$	43,130

Return on Equity and Assets

	2014			2013			2012
Return on average assets		0.97	%		0.90	%		0.80	%
Return on average shareholders’ equity		10.60			9.93			8.85
Dividend payout ratio		34.42			37.60			43.30
Average shareholders’ equity to average assets		9.18			9.08			9.10

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)	2014			2013			2012
Securities sold under agreements to repurchase, federal funds purchased and short-term advances at year-end	$	46,627		$	48,671		$	43,992
Average balance outstanding		51,855			45,330			40,893
Maximum outstanding at any month end during the year		63,717			48,671			43,992
Weighted-average interest rate at year-end		0.14	%		0.15	%		0.20	%
Weighted-average rate during the year		0.15			0.15			0.22

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 be affected by 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 movement off 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 the Company. 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 Financial Accounting Standards board (“FASB”) is currently finalizing amendments to proposed guidance on the impairment of financial instruments. The proposed amendments would introduce a new impairment model based on expected losses rather than incurred losses. Under this current expected credit loss model (“CECL”), an entity would recognize as an allowance its estimate of the contractual cash flows not expected to be collected. FASB staff has begun drafting a final Accounting Standards Update for Financial Instruments-Credit Losses but the Board has yet to discuss the effective date of its proposed amendments to the current guidance on accounting for credit losses. The final guidance may require the Company to maintain a larger allowance for loan losses in the future than existing guidance currently requires.

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

As of December 31, 2014, approximately 64% 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.

17

If the Company forecloses on collateral property and owns the underlying real estate, the Company may be subject to the increased costs associated with the ownership of real property, resulting in reduced income.

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.

In addition, when the Company forecloses on real property, the amount the Company realizes after a default is dependent upon factors outside of the Company’s control, including, but not limited to, economic conditions, neighborhood real estate values, interest rates, real estate taxes, operating expenses of the mortgaged properties, zoning laws, governmental rules, regulations and fiscal policies, and acts of God. Certain expenditures associated with the ownership of real estate, principally real estate taxes and maintenance costs, may adversely affect the income from the real estate. Therefore, the cost of operating real property may exceed the rental income earned from such property, and the Company may have to sell the property at a loss. The foregoing expenditures could adversely affect the Company’s financial condition and results of operations.

The Company is subject to liquidity risk.

The Company requires liquidity to extend credit and repay liabilities on a timely basis at a reasonable cost. 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 portion of its assets are loans, which cannot be called or sold in the same time frame. The Company historically has been able to replace maturing deposits and advances as necessary, but it might not be able to readily replace such funds in the future, 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 ability to grow successfully will depend on a variety of factors, including the continued availability of desirable business opportunities. There can be no assurance when or if such growth opportunities will be available.

Over the past seven years, the Company’s growth has been accomplished through a combination of organic growth, de novo branching and acquisitions. The Company may acquire other financial institutions or parts of institutions in the future, open new branches, and consider new lines of business and new products or services. Such expansions of its business may involve a number of expenses and risks, generally not attendant with organic growth efforts.

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. The Company may need to raise additional capital in the future 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

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 the Company’s 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 the Company’s ability to expand operations, and on the Company’s financial condition, results of operations and future prospects.

18

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

Competition in the financial services industry is intense, as the Company competes with banks, credit unions, 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, or in some cases a lower cost operating model, than the Company can offer. The Company’s ability to achieve its financial objectives will depend on its ability to deliver or expand product delivery systems and technology required by customers.

Unauthorized disclosure of sensitive or confidential client or customer information, whether through a breach of the Company’s computer systems or otherwise, could severely harm the Company’s 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. 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, cause a loss of customer confidence, expose it to risks of litigation and liability or disrupt the Company’s operations and may have a material adverse effect on the Company’s business.

Potential misuse of funds or information by the Company’s employees or by third parties could result in damage to its clients for which the Company could be held liable, subject the Company to regulatory sanctions and otherwise adversely affect the Company’s financial condition and results of operations.

The Company’s employees handle a significant amount of funds, as well as financial and personal information. Although the Company has implemented systems to minimize the risk of fraudulent taking or misuse of funds or information, there can be no assurance that its controls will be adequate or that a taking or misuse of funds or information by employees, by third parties who have authorized access to funds or information, or by third parties who are able to access funds or information without authorization will never occur. The Company could be held liable for such an event and could also be subject to regulatory sanctions. The Company could also incur the expense of developing additional controls to prevent future such occurrences. Although the Company has insurance to cover such potential losses, the Company cannot provide assurance that such insurance will be adequate to meet any liability. In addition, any loss of trust or confidence placed in the Company by its clients could result in a loss of business, which could adversely affect the Company’s financial condition and results of operations.

A failure in or breach of the Company’s technology infrastructure, or those of third parties with whom the Company has relationships, could result in a material adverse effect on the Company’s operations, reputation, cash flows, financial condition and results of operation.

The Company is very dependent upon the use of technology to operate its business. The Company processes a large number of transactions every day and maintains and transmits confidential client and employee information through its technology systems. Although the Company has instituted security systems and monitors, modifies and updates those systems periodically, those systems may fail to operate properly. Technology changes at a rapid pace, as do the threats to the continued operation and security of the Company’s technology systems.

Most of the software applications the Company uses are licensed from, and supported, upgraded and maintained by, third parties. A suspension or termination of certain of the licenses or the related support, upgrades and maintenance could disrupt 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 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.

19

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

CSB’s common shares are very thinly traded and, therefore, susceptible to price swings. CSB’s common shares are traded on the OTC market under the symbol “CSBB;” however, the investment community does not actively follow the CSB’s common shares. Given the lower trading volume of CSB’s common shares, significant sales of CSB’s common shares, or the expectation of significant sales, could cause CSB’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.

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, 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, significant declines in north central Ohio real estate values 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 as well as competitive factors. 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. 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.

20

Risks Related to Regulatory Environment and Legal Events

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

The Company and its subsidiaries are subject to broad 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. 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 the Company’s business activities, including lending, and the Company’s ability to expand, either organically or through acquisitions. In addition, the new liquidity standards could require the Company to increase the Company’s holdings of highly liquid short-term investments, thereby reducing the Company’s ability to invest in longer-term assets even if longer-term assets are more desirable from a balance sheet management perspective.

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

The Dodd-Frank Act which was signed into law on July 21, 2010 represents a comprehensive overhaul of the financial services industry within the U.S. While a number of provisions of the Dodd-Frank Act have already been in place for a number of years, there are some provisions that still have not been fully implemented through the adoption of regulations and which may still significantly impact the Company in the future.

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.

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.

21

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, the financial position 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

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.

22

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 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 2014.

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, 2014, 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, 2009 in CSB’s Common Shares and in each of the indicated indices and assumes reinvestment of dividends.

	2009		2010		2011		2012		2013		2014
CSBB	$	100	$	107	$	120	$	127	$	148	$	177
S & P 500		100		115		117		136		180		205
NASDAQ Bank		100		111		104		123		174		182

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.

23

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

Information contained in the section captioned “2014 Financial Review” on pages 8 through 22 of the Annual Report is incorporated herein by reference.

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, 2014, 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

24

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 22, 2015 (the “2015 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 2015 Annual Meeting to be filed with the SEC (“2015 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 2015 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 2015 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 Director 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 2015 Proxy Statement. These procedures have not materially changed from those described in CSB’s definitive proxy materials for the 2015 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 2015 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 2015 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 2015 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 2015 Proxy Statement.

25

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		11,904	$	18.00		—
Equity compensation plans not approved by stockholders		—		—		—
Total		11,904	$	18.00		—

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 2015 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 2015 Proxy Statement. There were no relationships where transactions exceeded $120,000 for the year ended December 31, 2014.

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 2015 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 2015 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 2014 Annual Report as noted:

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

Consolidated Balance Sheets at December 31, 2014 and 2013–pg. 25.

Consolidated Statements of Income for the years ended December 31, 2014, 2013 and 2012–pg. 26.

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Consolidated Statements of Comprehensive Income for the years ended December 31, 2014, 2013 and 2012–pg. 27.

Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2014, 2013 and 2012–pg. 27.

Consolidated Statements of Cash Flows for the years ended December 31, 2014, 2013 and 2012–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. 2014 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 2014 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.

27

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 23, 2015	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 23, 2015.

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

28

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. 2014 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 2014 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

driving

NEW LEVELS OF

At CSB, we’re responsive to the fast changing landscape of channel delivery options. We are committed to ensuring that customers can bank with us in the ways they prefer. During 2014, the CSB team pictured above conducted significant research and developed important insights and strategies to reach new levels of success and customer service in our markets.

Virtual Channel Development Team (vCDT) members shown above. Standing, Left to Right: Jennifer Deam, Brett Gallion, Alyssa Waller and Marc Harvey. Seated, Left to Right: Molly Mohr and Misty Obringer.

2014 Financial Highlights	3
2014 Letter to Shareholders	4
Board of Directors	7
2014 Financial Review	8
Report on Management’s Assessment of Internal Control over Financial Reporting	23
Report of Independent Registered Public Accounting Firm	24
Consolidated Balance Sheets	25
Consolidated Statements of Income	26
Consolidated Statements of Comprehensive Income	27
Consolidated Statements of Changes in Shareholders’ Equity	27
Consolidated Statements of Cash Flows	28
Notes to Consolidated Financial Statements	30
Officers of The Commercial and Savings Bank	60
Shareholders and General Inquiries	61
Banking Center Information	62

2014 FINANCIAL HIGHLIGHTS

FOR THE YEAR ENDED DECEMBER 31	2014			2013			% CHANGE
(Dollars in thousands, except per share data)
CONSOLIDATED RESULTS
Net interest income	$	19,927		$	18,883			6	%
Net interest income – fully taxable-equivalent (“FTE”) basis		20,212			19,190			5
Noninterest income		4,250			4,318			-2
Provision for loan losses		643			840			-23
Noninterest expense		15,082			14,848			2
Net income		5,884			5,240			12
AT YEAR-END
Loans, net	$	406,522		$	374,040			9	%
Assets		620,981			596,465			4
Deposits		500,075			480,933			4
Shareholders’ equity		57,450			52,411			10
Cash dividends declared		0.74			0.72			3
Book value		20.97			19.15			10
Tangible book value		19.02			17.15			11
Market price		22.00			19.00			16
Basic and diluted earnings per share		2.15			1.91			13
FINANCIAL PERFORMANCE
Return on average assets		0.97	%		0.90	%
Return on average equity		10.60			9.93
Net interest margin, FTE		3.56			3.51
Efficiency ratio		61.46			63.01
CAPITAL RATIOS
Risk-based capital:
Tier 1		12.51	%		12.31	%
Total		13.56			13.56
Leverage		8.51			8.21

2014 Report to Shareholders  |  CSB Bancorp, Inc.            3

LETTER TO SHAREHOLDERS

DEAR FELLOW SHAREHOLDER:

2014 was another year of growth, improved financial performance and progress in key strategic initiatives. We are larger than we have ever been, generating record income, and building forward momentum in our markets.

The Company’s average balance sheet size exceeded $600 million for the first time in its history. Net income of $5.9 million established a third consecutive record high. Our technology and talent development efforts continue to increase our effectiveness in the marketplace. In short, the CSB team is actively engaged in supporting our vision of building a company of enduring greatness.

CSB’s stock delivered a total return of 20% during 2014, including dividend reinvestment and price appreciation. Our dividend remains very attractive, with an average yield of 3.67% when dividing total cash dividends paid by the average 2014 daily closing stock price. The dividend yield has been above 3.5% since before the financial crisis of 2007-08 and remains substantially stronger than state and national averages for financial stocks. Dividends are one reflection of our commitment to work hard at continually enhancing shareholder value.

HOW WE DO BUSINESS

Our business model remains community centric. The rural and urban areas in which we operate are at the core of our mission and strategy. Everything we do is intended in some way to enhance the well-being of these communities. We provide products and services that help customers accomplish their financial goals. We seek, hire and grow leadership from within the local markets. We keep the interests of our shareholders, many of whom are local investors, in mind as we conduct our operations.

Our six core values continue to guide our efforts. Profit Responsibility, Customer Service, Valued Employees, Honesty and Integrity, Enjoyment of Life and the privilege to work in the communities in which we live, and Growth as part of the lifeblood of our future provide the time-tested framework for all that we do. As the industry continues to change, these core values will continue to guide our journey.

We have built a strong culture of effective risk management and compliance to sustain the safety and soundness of the Bank. We diligently focus on protecting our customers from cybersecurity threats and fraud risks, as well as conducting our operations in accordance with increasing regulatory requirements. We continually evaluate our policies and procedures, systems and technology as we work to reduce risks to our customers and protect the reputation and trust that we have established.

MARKETS

Most of our business activities are conducted in Holmes, Tuscarawas, Wayne and Stark counties of Ohio. These markets exhibit relatively stable populations, a wide range of manufacturing, distribution, service and agriculture enterprises, and solid educational and advancement opportunities for citizens.

The economy in each of these counties has been slowly expanding for several years. Business investments are increasing, and home prices and construction levels are generally improving. Unemployment rates have declined to levels below those that existed prior to the severe recession of 2007-2009, and are presently below U.S. and Ohio average rates. We are fortunate to be able to call these markets home.

OVERVIEW OF BANKING ACTIVITY

Our business model provides effective intermediary services that facilitate the flow of funds within the communities we serve. We safeguard deposit and investment monies entrusted to us, we put a significant amount of depositor funds to work by lending prudently in the broader community, and we provide access to reliable payment channels for debit and credit card processing, internet and mobile banking and check clearing.

Lending is the primary revenue generating activity in our business model, accounting for 71% of gross revenue in the past year. As a commercial bank, we provide loans to businesses and individuals alike. Average loan balances increased 8% during the year to

4             2014 Report to Shareholders  |  CSB Bancorp, Inc.

LETTER TO SHAREHOLDERS

more than $400 million in average loans outstanding. Commercial real estate loans, many of which reflect owner-occupied businesses, comprised about 34% of our outstanding loan balances at the end of the year, while business loans and home residence loans each comprised about 30% of our loan portfolio. This mix has been little-changed in recent years, and each of these major categories of average loan balances grew by more than 5% during 2014.

Income from our securities portfolio amounted to 11% of revenue in 2014. Service charges, interchange income on card transactions, and trust and brokerage revenue accounted for 5%, 4% and 3% of revenues, respectively.

Average deposit balances increased for the eighth consecutive year, growing by 2% and establishing a sixth consecutive high water mark. A little over one-fourth of our total deposits are in non-interest bearing accounts, largely business related with the remainder in savings, time deposits and interest-bearing demand accounts.

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

TRENDS IN THE INDUSTRY

The financial services sector is undergoing fairly significant changes with a number of macro factors at play. New adaptations of technology for banking and payments processing and new forms of competition are all having major impact on the banking landscape. Consumers are increasingly demonstrating a preference for direct electronic access to financial services and the omnipresent mobile device appears poised to become a primary banking channel. A complex and active regulatory climate requires significant resource utilization. Data integrity and the protection of sensitive customer information have become primary concerns and are requiring increased attention and resources.

We believe the above factors create opportunities for us to grow and strengthen our position in the marketplace. Maintaining financial strength and stability are requisite to thrive in such circumstances and we carefully steward our capital, liquidity, credit quality and expense management in order to maintain the base fitness required to respond to changing conditions and seize opportunities.

CHANNEL DELIVERY

We continue to work at enhancing our customers’ experience. We recognize the fundamental importance of providing services in ways that customers find most convenient. Some customers highly value in-person transactions at our retail locations. Other customers prefer one or more electronic channels to handle transactions, such as our website or mobile banking applications. Our commitment is to provide noticeably different service The CSB Way regardless of which delivery channel a customer prefers or uses for any particular interaction. We are working toward a consistent CSB look and feel across all channels of customer engagement, whether in person or by digital means. Our customer service call center is one example of a channel that we significantly enhanced over the past year. These CSB team members are shining stars when it comes to customer service.

2014 Report to Shareholders  |  CSB Bancorp, Inc.            5

LETTER TO SHAREHOLDERS

LEADERSHIP DEVELOPMENT

Perpetuating meaningful contributions to the well-being of the communities we serve relies on the continuous development of CSB’s outstanding employees. For the past four years, we have devoted considerable energy to reengineering our leadership development initiatives. Our leadership program is guided by our training board and administered by an in-house team of training and professional development staff. We supplement these efforts with select use of outside leadership development programs and could not be more pleased with the results to date.

IN APPRECIATION

For more than 35 years, Dr. Daniel J. Miller has served on CSB’s Board of Directors. His market and business knowledge, his steadfast commitment to the greater Holmes County area, and his counsel have been invaluable in helping the Bank grow assets fifteen fold during his tenure. Dan is retiring from the CSB Board as of our April 22, 2015 annual meeting. It is with deep appreciation and gratitude that we thank Dan for his contributions.

Collectively, CSB’s employees strive to provide excellence in financial services to each customer. The team’s considerable talent, commitment and adaptability bode well for the continued success of the Company. We are proud of their accomplishments in helping make the Company what it is today and what it will be tomorrow.

To our shareholders, who help provide capital to sustain our mission, we continue to pledge attentiveness to the responsibilities that we have on your behalf. Thank you for your support.

EDDIE STEINER	JOHN WALTMAN
President and	Chairman of the
Chief Executive Officer	Board of Directors

BOARD OF DIRECTORS

Standing, Left to Right
J. THOMAS LANG	RONALD E. HOLTMAN	EDDIE L. STEINER	ROBERT K. BAKER	JOHN R. WALTMAN
Veterinarian,	Attorney, Of Counsel,	President,	Co-Owner and Controller,	Attorney, Of Counsel,
Dairy Farmer,	Logee, Hostetler,	Chief Executive Officer,	Bakerwell, Inc.	Critchfield, Critchfield
Spring Hill Farms, Inc.	Stutzman & Lehman	CSB Bancorp, Inc.		& Johnston
				Chairman,
				CSB Bancorp, Inc.
Seated, Left to Right
	DANIEL J. MILLER		JEFFERY A. ROBB, SR.
	Retired Physician,		President,
	East Holmes Family Care, Inc.		Robb Companies, Inc.
	Chairman of the Board,
	Dutchman Hospitality Group, Inc.

2014 Report to Shareholders  |  CSB Bancorp, Inc.            7

2014 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 which is 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.

In 2014, the Company’s market area demonstrated increasing economic activity following five years of modest gains. Unemployment levels in Holmes County, reported at 2.9% in December 2014, 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 2014 and 2013. Residential real estate property values have slowly recovered with low mortgage rates and high affordability. Auto sales also grew, helped by job growth, available financing and the near record age of existing vehicle stock. Ohio’s growth activity continues to be reported in manufacturing and energy-related industries. If oil prices were to experience a sustained decline, mining and manufacturing jobs in the oil and gas business, which had been expanding in the previous two years may decline. 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             2014 Report to Shareholders  |  CSB Bancorp, Inc.

2014 FINANCIAL REVIEW

SELECTED FINANCIAL DATA

The following table sets forth certain selected consolidated financial information:

(Dollars in thousands, except per share data)	2014			2013			2012			2011			2010
Statements of income:
Total interest income	$	21,656		$	21,138		$	20,584		$	20,018		$	20,390
Total interest expense		1,729			2,255			2,978			3,678			4,820
Net interest income		19,927			18,883			17,606			16,340			15,570
Provision for loan losses		643			840			823			950			1,235
Net interest income after provision for loan losses		19,284			18,043			16,783			15,390			14,335
Noninterest income		4,250			4,318			4,204			3,508			3,275
Noninterest expense		15,082			14,848			14,450			13,609			12,546
Income before income taxes		8,452			7,513			6,537			5,289			5,064
Income tax provision		2,568			2,273			1,990			1,602			1,568
Net income	$	5,884		$	5,240		$	4,547		$	3,687		$	3,496
Per share of common stock:
Basic income per share	$	2.15		$	1.91		$	1.66		$	1.35		$	1.28
Diluted income per share		2.15			1.91			1.66			1.35			1.28
Dividends		0.74			0.72			0.72			0.72			0.72
Book value		20.97			19.15			19.17			18.07			17.24
Average basic common shares outstanding		2,737,636			2,736,473			2,734,889			2,734,799			2,734,799
Average diluted common shares outstanding		2,739,078			2,738,477			2,735,141			2,734,838			2,734,799
Year-end balances:
Loans, net	$	406,522		$	374,040		$	360,000		$	320,100		$	311,616
Securities		143,038			151,535			134,754			128,489			80,667
Total assets		620,981			596,465			586,900			551,233			457,056
Deposits		500,075			480,933			475,443			443,553			353,491
Borrowings		61,580			61,130			56,664			56,234			54,927
Shareholders’ equity		57,450			52,411			52,453			49,429			47,154
Average balances:
Loans, net	$	400,876		$	369,889		$	338,441		$	314,670		$	309,121
Securities		145,065			138,976			132,567			93,851			77,967
Total assets		604,605			581,150			564,875			471,329			445,649
Deposits		479,330			468,395			453,526			367,865			334,073
Borrowings		67,657			57,882			57,735			52,717			62,951
Shareholders’ equity		55,529			52,787			51,384			48,674			47,081
Select ratios:
Net interest margin, tax equivalent basis		3.56	%		3.51	%		3.36	%		3.71	%		3.73	%
Return on average total assets		0.97			0.90			0.80			0.78			0.78
Return on average shareholders’ equity		10.60			9.93			8.85			7.57			7.43
Average shareholders’ equity as a percent of average total assets		9.18			9.08			9.10			10.33			10.56
Net loan charge-offs as a percent of average loans		0.33			0.09			0.09			0.28			0.40
Allowance for loan losses as a percent of loans at year-end		1.07			1.34			1.26			1.26			1.28
Shareholders’ equity as a percent of total year-end assets		9.25			8.79			8.94			8.97			10.32
Dividend payout ratio		34.42			37.60			43.30			53.40			56.32

2014 Report to Shareholders  |  CSB Bancorp, Inc.            9

2014 FINANCIAL REVIEW

RESULTS OF OPERATIONS

Net Income

CSB’s 2014 net income was $5.9 million compared to $5.2 million for 2013, representing an increase of 12%. Basic and diluted earnings per share were $2.15, up 13% from the prior year. The increased net income improved the return on average assets to 0.97% in 2014 from 0.90% in 2013 and return on average equity rose to 10.60% in 2014 from 9.93% in 2013.

Net income for 2013 was $5.2 million while basic and diluted earnings per share were $1.91, as compared to $4.5 million or $1.66 per share, for the year ended December 31, 2012. Net income increased 15% during 2013 as compared to 2012, due primarily to a $1.3 million increase in total net interest income and a $114 thousand increase in noninterest income. Partially offsetting the higher revenue were increases in noninterest expenses and federal income taxes. Return on average assets was 0.90% in 2013 compared to 0.80% in 2012, and return on average shareholders’ equity was 9.93% in 2013 as compared to 8.85% in 2012.

Net Interest Income

(Dollars in thousands)	2014			2013			2012
Net interest income	$	19,927		$	18,883		$	17,606
Taxable equivalent1		285			307			290
Net interest income, fully taxable equivalent	$	20,212		$	19,190		$	17,896
Net interest yield		3.51	%		3.46	%		3.31	%
Taxable equivalent adjustment1		0.05			0.05			0.05
Net interest yield-taxable equivalent		3.56	%		3.51	%		3.36	%

¹Taxable 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 $1.0 million or 6%, in 2014 compared to 2013, partially due to a 4% increase in average earning assets, and a favorable mix of increased average loan balances and decreased cash balances. Additionally, the net interest margin increased to 3.51%, from 3.46% last year. The margin improvement was primarily due to lower funding costs resulting from a 2% increase in total average deposits, with average balance increases in lower cost demand, savings and maturing time deposits repricing at lower rates. Net discount and accretion of purchase accounting adjustments for loans, time deposits and borrowings acquired decreased the net interest margin by 1 basis point in 2014 after having improved the net interest margin by 5 basis points during 2013 and 2 basis points in 2012.

Interest income increased $518 thousand or 2% in 2014 compared to 2013 due to the $31 million increase in average loan balances, partially offset by lower yields. Rates decreased on loans and tax exempt 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 28 basis points in 2014 as compared to 2013. The increase in average loan volume helped mitigate the low interest rate environment. In 2014, average loan balances to average gross earning assets rose to 71%, compared to 69% in 2013. Securities yields continued to decline in 2014 with new and reinvestment cash flows being deployed at lower rates.

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.

Interest expense decreased $526 thousand or 23% in 2014 as compared to 2013 due to decreases in the cost of all categories of interest-bearing liabilities and a continued shift in the liability mix towards less expensive, noninterest-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 $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, noninterest-bearing demand deposits and savings accounts. Total average time deposits continue to decline due to an emphasis on growing customers with multiple banking relationships, as opposed to single service time deposit customers.

10             2014 Report to Shareholders  |  CSB Bancorp, Inc.

2014 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
	2014						2013								2012
(Dollars in thousands)	Average       Balance1			Interest		Average Rate2	Average Balance1			Interest		Average Rate2			Average Balance1			Interest		Average Rate2
Interest-earning assets
Federal funds sold	$	546		$	1	0.22%	$	188		$	0		0.16	%	$	148		$	0	0.12%
Interest-earning deposits		16,356			42	0.26		32,127			90		0.28			56,422			147	0.26
Securities:
Taxable		128,973			2,857	2.22		122,314			2,572		2.10			118,867			2,672	2.25
Tax exempt		16,092			466	2.89		16,662			513		3.08			13,700			486	3.55
Loans3		405,973			18,290	4.51		374,821			17,963		4.79			342,868			17,279	5.05
Total interest-earning assets		567,940			21,656	3.81%		546,112			21,138		3.87	%		532,005			20,584	3.87%
Noninterest-earning assets
Cash and due from banks		13,663						12,911								12,399
Bank premises and equipment, net		8,494						9,222								8,630
Other assets		19,605						17,837								16,268
Allowance for loan losses		(5,097	)					(4,932	)							(4,427	)
Total assets	$	604,605					$	581,150							$	564,875
Interest-bearing liabilities
Demand deposits	$	73,307			36	0.05%	$	70,648			42		0.06	%	$	63,346			50	0.08%
Savings deposits		151,822			130	0.09		141,638			144		0.10			135,035			230	0.17
Time deposits		129,676			1,000	0.77		149,340			1,534		1.03			163,997			2,043	1.25
Borrowed funds		67,657			563	0.83		57,882			535		0.92			57,735			655	1.13
Total interest-bearing liabilities		422,462			1,729	0.41%		419,508			2,255		0.54	%		420,113			2,978	0.71%
Noninterest-bearing liabilities and shareholders’ equity
Demand deposits		124,525						106,769								91,148
Other liabilities		2,089						2,086								2,230
Shareholders’ equity		55,529						52,787								51,384
Total liabilities and equity	$	604,605					$	581,150							$	564,875
Net interest income				$	19,927					$	18,883							$	17,606
Net interest margin						3.51%							3.46	%						3.31%
Net interest spread						3.40%							3.33	%						3.16%

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

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

³Average loan balances include nonaccrual loans.

2014 Report to Shareholders  |  CSB Bancorp, Inc.            11

2014 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
	2014 v. 2013									2013 v. 2012
	Net Increase									Net Increase
(Dollars in thousands)	(Decrease)			Volume			Rate			(Decrease)			Volume			Rate
Increase (decrease) in interest income:
Federal funds	$	1		$	1		$	–		$	–		$	–		$	–
Interest-earning deposits		(48	)		(40	)		(8	)		(57	)		(68	)		11
Securities:
Taxable		285			147			138			(100	)		72			(172	)
Tax exempt		(47	)		(16	)		(31	)		27			91			(64	)
Loans		327			1,403			(1,076	)		684			1,531			(847	)
Total interest income change		518			1,495			(977	)		554			1,626			(1,072	)
Increase (decrease) in interest expense:
Demand deposits		(6	)		1			(7	)		(8	)		4			(12	)
Savings deposits		(14	)		9			(23	)		(86	)		7			(93	)
Time deposits		(534	)		(152	)		(382	)		(509	)		(151	)		(358	)
Other borrowed funds		28			81			(53	)		(120	)		1			(121	)
Total interest expense change		(526	)		(61	)		(465	)		(723	)		(139	)		(584	)
Net interest income	$	1,044		$	1,556		$	(512	)	$	1,277		$	1,765		$	(488	)

¹Changes 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 $643 thousand in 2014, $840 thousand for 2013 and $823 thousand for 2012. Lower provision expense in 2014 reflects improving economic conditions which have led to a decrease in classified 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 2013										Change from 2012
(Dollars in thousands)	2014		Amount			%			2013		Amount			%			2012
Service charges on deposit accounts	$	1,269	$	(80	)		(5.9	)%	$	1,349	$	44			3.4	%	$	1,305
Trust services		811		(15	)		(1.8	)		826		155			23.1			671
Debit card interchange fees		910		131			16.8			779		(18	)		(2.3	)		797
Securities gains		133		(26	)		(16.4	)		159		159			100.0			–
Gain on sale of loans, including MSR’s		198		(149	)		(42.9	)		347		(244	)		(41.3	)		591
Other		929		71			8.3			858		18			2.1			840
Total noninterest income	$	4,250	$	(68	)		(1.6	)%	$	4,318	$	114			2.7	%	$	4,204

12             2014 Report to Shareholders  |  CSB Bancorp, Inc.

2014 FINANCIAL REVIEW

Noninterest income decreased $68 thousand, or 2% in 2014 compared to the same period in 2013. Net gains on sales of mortgage loans including mortgage servicing rights (“MSRs”) decreased 43% due to the continuing slowdown in mortgage refinance activity during 2014. The Bank originated and sold $6 million in mortgage loans in 2014 as compared to the sale of $12 million of loans in 2013. Service charges on deposits which are primarily customer overdraft fees, decreased 6% in 2014, with an 11% decrease in overdraft fees due to increasing health of consumer deposit balances. Trust fees increased 11% as assets under management increased from overall market improvements and customer development initiatives. The average market value of trust assets under management in 2014 was $95 million compared to $86 million in 2013. However, brokerage fees contained within trust services decreased $80 thousand in 2014 contributing to the net decrease of 2%. With interest rates declining during 2014, available-for-sale securities with gains of $133 thousand were sold as net loan demand increased during 2014.

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 MSRs 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 Expenses

						YEAR ENDED DECEMBER 31
	Change from 2013										Change from 2012
(Dollars in thousands)	2014		Amount			%			2013		Amount			%			2012
Salaries and employee benefits	$	8,321	$	60			0.7	%	$	8,261	$	301			3.8	%	$	7,960
Occupancy expense		1,014		(12	)		(1.2	)		1,026		1			0.1			1,025
Equipment expense		715		(4	)		(0.6	)		719		101			16.3			618
Professional and director fees		725		97			15.4			628		(186	)		(22.9	)		814
Franchise tax expense		361		(220	)		(37.9	)		581		39			7.2			542
Marketing and public relations		378		(17	)		(4.3	)		395		3			0.8			392
Software expense		727		197			37.2			530		139			35.5			391
Debit card expense		421		130			44.7			291		(40	)		(12.1	)		331
Amortization of intangible assets		130		(5	)		(4.4	)		135		(5	)		(3.6	)		140
FDIC insurance		358		(1	)		(0.3	)		359		31			9.5			328
Branch acquisition expense		–		–			–			–		(8	)		(100.0	)		8
Other real estate expenses		–		(9	)		N.M.			9		(24	)		N.M.			33
Other		1,932		18			(0.2	)		1,914		46			2.2			1,868
Total noninterest expenses	$	15,082	$	234			1.6	%	$	14,848	$	398			2.8	%	$	14,450

N.M., not a meaningful value

Noninterest expense increased $234 thousand, or 2% in 2014 compared to 2013. Salaries and employee benefits increased $60 thousand due to base compensation increasing $185 thousand as a result of additional full time employees and annual adjustments. Capitalization of employee costs of loan origination and benefit decreases amounted to $125 thousand. Software expense increased $197 thousand in 2014 due to a full year increase of the cost of new core processing and loan documentation software. Equipment expense decreased $4 thousand in 2014 as compared to 2013. Franchise tax expense decreased $220 thousand in 2014, to $361 thousand, with the implementation of the new Ohio Financial Institutions Tax. Debit card expense increased $130 thousand in 2014, a result of one time charges of $40 thousand to convert to a new third party processor, $26 thousand additional fraud losses and increased customer usage. Professional and director fees increased $97 thousand, a result of the increase in legal fees surrounding loan collections of $118 thousand primarily incurred in the disposition of two commercial loan relationships.

2014 Report to Shareholders  |  CSB Bancorp, Inc.            13

2014 FINANCIAL REVIEW

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 in 2014.

Income Taxes

The provision for income taxes amounted to $2.6 million in 2014, $2.3 million in 2013 and $2.0 million in 2012, resulting in an effective rate of 30.4% in 2014, 30.3% in 2013 and 30.4% in 2012. The slight increase in the effective tax rate during 2014 as compared to 2013 is due primarily to increased income.

FINANCIAL CONDITION

Total assets of the Company were $621 million at December 31, 2014, compared to $596 million at December 31, 2013, representing an increase of $25 million, or 4%. Net loans increased $32 million, or 9%, while investment securities decreased $8 million, or 6% and interest-earning deposits with other banks increased $2 million. Deposits increased $19 million, or 4%, while other borrowings from the FHLB increased by $2 million, or 20%.

Securities

Total investment securities decreased $8 million, or 6% to $143 million at year-end 2014. 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.

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, 2014, $15.9 million, or 87%, held an S&P or Moody’s investment grade rating and $2.4 million or 13% were non-rated. The municipal portfolio includes a broad spectrum of counties, towns, universities and school districts with 98% of the portfolio originating in Ohio and 2% in Pennsylvania. Total gross unrealized security losses within the portfolio were 0.3% of total available-for-sale securities at December 31, 2014, 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 $32 million, or 8% during 2014. Volume increases were recognized in commercial and commercial real estate loans of $16 million, or 7%, and residential real estate loans of $10 million, or 9%. Construction loans increased $4 million, or 30%. During 2014, business expansion continued in the Company’s newly expanded markets. Aided by low interest rates, commercial and commercial real estate loans continued to increase in 2014.

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 $10 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 2014 and the Company sold $6 million of originated mortgages into the secondary market as compared to $12 million in 2013. 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 2014, with balances decreasing $114 thousand as many consumers rewrote their floating rate equity line and first mortgage into a lower rate fixed rate mortgage. Installment lending improved with consumer loans increasing 18% on a year-over-year basis to $7.9 million at December 31, 2014.

14             2014 Report to Shareholders  |  CSB Bancorp, Inc.

2014 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 64% and 65% of the total loan portfolio at year-end 2014 and 2013, respectively. Residential real estate loans increased from 29% to approximately 30% between December 31, 2013 and December 31, 2014. Construction and land development loans remained stable at 4% of the total portfolio between 2013 and 2014. 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, 2014 included $30 million, or 7% of total loans to lessors of non-residential buildings or dwellings; $19 million, or 5% of total loans to logging, sawmills and timber tract operations; $18 million, or 4% of total loans to lessors of residential real estate and $16 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)	2014			2013
Nonaccrual loans:
Commercial	$	1,071		$	84
Commercial real estate		1,734			1,108
Residential real estate		863			1,042
Construction & land development		–			–
Loans past due 90 days and still accruing:
Commercial		1			–
Commercial real estate		–			40
Residential real estate		280			46
Construction & land development		–			950
Total nonperforming loans		3,949			3,270
Other real estate owned		–			–
Total nonperforming assets	$	3,949		$	3,270
Nonperforming assets as a percentage of loans plus other real estate		0.96	%		0.86	%

Allowance for Loan Losses

The allowance for loan losses is maintained at a level considered by management to be 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.

2014 Report to Shareholders  |  CSB Bancorp, Inc.            15

2014 FINANCIAL REVIEW

ALLOWANCE FOR LOAN LOSSES	FOR THE YEAR ENDED
(Dollars in thousands)	2014			2013
Beginning balance of allowance for loan losses	$	5,085		$	4,580
Provision for loan losses		643			840
Charge-offs:
Commercial		985			149
Commercial real estate		379			108
Residential real estate & home equity		27			82
Construction & land development		–			–
Consumer		11			48
Deposit accounts		20			35
Credit cards		–			6
Total charge-offs		1,422			428
Recoveries:
Commercial		21			15
Commercial real estate		8			–
Residential real estate & home equity		25			18
Construction & land development		–			–
Consumer		14			50
Deposit accounts		7			10
Credit cards		–			–
Total recoveries		75			93
Net charge-offs		1,347			335
Ending balance of allowance for loan losses	$	4,381		$	5,085
Net charge-offs as a percentage of average total loans		0.33	%		0.09	%
Allowance for loan losses as a percentage of total loans		1.07			1.34
Allowance for loan losses to total nonperforming loans		1.11	x		1.56	x
Components of the allowance for loan losses:
General reserves	$	4,197		$	4,301
Specific reserve allocations		184			784
Total allowance for loan losses	$	4,381		$	5,085

The allowance for loan losses totaled $4.4 million, or 1.07%, of total loans at year-end 2014 as compared to $5.1 million, or 1.34% of total loans at year-end 2013. Net charge-offs for 2014 totaled $1.3 million as compared to net charge-offs of $335 thousand in 2013. The majority of the charge-offs were attributed to one commercial relationship which had been specifically reserved for during 2014.

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 $3.9 million, or 1.0% of loans at year-end 2014 as compared to $3.3 million, or 0.9% of loans at year-end 2013. Impaired loans were $9.2 million at year-end 2014 as compared to $10.7 million at year-end 2013. Impaired loans as a percentage of total loans declined from 2013 to 2014 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             2014 Report to Shareholders  |  CSB Bancorp, Inc.

2014 FINANCIAL REVIEW

Other Assets

Net premises and equipment decreased $404 thousand to $8.3 million at year-end 2014 primarily because depreciation expense exceeded the purchase of equipment and furniture in 2014. There was no other real estate owned at December 31, 2014 or 2013. Bank-owned life insurance of $1 million was purchased on the life of a senior management member during 2013. At December 31, 2014 the Company recognized a net deferred tax asset of $377 thousand as compared to a net deferred tax asset of $1.2 million at December 31, 2013. The change in the Company’s net deferred tax position resulted primarily from the decrease in the net deferred tax 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 2014, 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 2013
(Dollars in thousands)	2014		2013		Amount			%
Noninterest-bearing demand	$	139,251	$	120,325	$	18,926			15.7	%
Interest-bearing demand		77,725		76,327		1,398			1.8
Traditional savings		84,548		76,630		7,918			10.3
Money market savings		70,788		73,307		(2,519	)		(3.4	)
Time deposits in excess of $100,000		43,130		42,562		568			1.3
Other time deposits		84,633		91,782		(7,149	)		(7.8	)
Total deposits	$	500,075	$	480,933	$	19,142			4.0	%

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, decreased $2 million; while other borrowings, which consist of FHLB advances, increased $2 million as the result of borrowing $5 million in a long-term amortizing advance to partially offset the interest rate risk of booking fifteen-year fixed-rate mortgages.

CAPITAL RESOURCES

Total shareholders’ equity increased to $57.5 million at December 31, 2014 as compared to $52.4 million at December 31, 2013. This increase was primarily due to $5.9 million of net income and $1.2 million other comprehensive income, which were offset by the payment of $2.0 million cash dividends in 2014. 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, 2014, approximately forty-one thousand shares could still be repurchased under the current authorized program. No shares were repurchased in 2014 or 2013.

In July 2013, the Federal Reserve adopted final rules effective 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 January 1, 2019. Failure to maintain the required ratios will restrict or prohibit dividends, share repurchases and discretionary bonuses. Management has evaluated the new rules and their effects on the Company and the Bank, and believes the Company and the Bank will remain “well-capitalized” under the new rules.

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.

2014 Report to Shareholders  |  CSB Bancorp, Inc.            17

2014 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.

LIQUIDITY

	December 31
(Dollars in millions)	2014			2013			Change from 2013
Cash and cash equivalents	$	44		$	43			$	1
Unused lines of credit		46			42				4
Unpledged securities at fair market value		48			42				6
	$	138		$	127			$	11
Net deposits and short-term liabilities	$	497		$	473			$	24
Liquidity ratio		27.9	%		26.9	%
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. Liquidity is monitored by CSB’s Asset Liability Committee. The Company was within all Board-approved limits at December 31, 2014 and 2013. Additional sources of liquidity include net income, loan repayments, the availability or borrowings 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 2014 included net loan originations of $33 million and the maturities and repayments of securities totaling $45 million, offset by $38 million in securities purchases. The Company’s financing activities included a $19 million increase in deposits, a $2 million decrease in securities sold under agreements to repurchase and a $2 million net increase in 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 2014 and 2013. Interest rate risk policy limits are tested by measuring the anticipated change in net interest income 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 2014 in market interest rates as compared to a stable rate environment or base model.

18             2014 Report to Shareholders  |  CSB Bancorp, Inc.

2014 FINANCIAL REVIEW

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, 2014
(Dollars in thousands)	Change In Interest Rates (Basis Points)	Net Interest Income	Dollar Change	Percentage Change	Board Policy Limits
	+ 400	$  21,408	$  1,144	5.6%	± 25%
	+ 300	21,082	818	4.0	± 15
	+ 200	20,766	502	2.5	± 10
	+ 100	20,454	190	0.9	±   5
	0	20,264	–	–
	– 100	20,022	(242)	(1.1)	±   5
	December 31, 2013
	+ 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

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, 2014 and 2013.

Economic Value of Equity at Risk

December 31, 2014
Change In Interest Rates (Basis Points)	Percentage Change	Board Policy Limits
+ 400	17.7%	± 35%
+ 300	15.7	± 30
+ 200	13.0	± 20
+ 100	8.3	± 15
– 100	(8.8)	± 15
December 31, 2013
+ 400	9.8%	± 35%
+ 300	8.8	± 30
+ 200	7.4	± 20
+ 100	4.7	± 15
– 100	(7.6)	± 15

2014 Report to Shareholders  |  CSB Bancorp, Inc.            19

2014 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, 2014, the market value of equity as a percent of base in a 400 basis point rising rate environment indicates an increase of 17.7%, as compared to an increase of 9.8% as of December 31, 2013. 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, 2014 and 2013.

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. Furthermore, 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. Most 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, 2014 and 2013 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, 2014:

	Amount of Commitment to Expire Per Period
(Dollars in thousands)	Total		Less than		1 to 3		3 to 5		Over 5
Type of Commitment	Amount		1 year		Years		Years		Years
Commercial lines-of-credit	$	77,799	$	69,904	$	1,750	$	1,223	$	4,922
Real estate lines-of-credit		37,580		2,491		5,101		5,456		24,532
Consumer lines-of-credit		881		881		–		–		–
Credit cards lines-of-credit		3,493		3,493		–		–		–
Overdraft privilege		6,634		6,634		–		–		–
Commercial real estate loan commitments		–		–		–		–		–
Letters of credit		1,778		1,778		–		–		–
Total commitments	$	128,165	$	85,181	$	6,851	$	6,679	$	29,454

20             2014 Report to Shareholders  |  CSB Bancorp, Inc.

2014 FINANCIAL REVIEW

As indicated in Note 10 to the consolidated financial statements, the Company had $128 million in total loan commitments at the end of 2014, with $85 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, 2014:

			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	$	127,763	$	66,964	$	41,065	$	19,712	$	22
Short-term borrowings		46,627		46,627		–		–		–
Other borrowings		14,953		1,488		11,809		923		733
Operating leases		498		294		204		–		–
Total obligations	$	189,841	$	115,373	$	53,078	$	20,635	$	755

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 2014 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 investments 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.

2014 Report to Shareholders  |  CSB Bancorp, Inc.            21

2014 FINANCIAL REVIEW

The Company 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 Assets.

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 inter-dealer 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 2014 and 2013. 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.

Quarter Ended	High			Low			Dividends Declared Per Share			Dividends Declared
March 31, 2014		$	20.00		$	18.85		$	0.18		$	492,594
June 30, 2014			20.50			19.10			0.18			492,675
September 30, 2014			20.37			19.64			0.19			520,288
December 31, 2014			22.00			20.00			0.19			520,487
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

As of December 31, 2014, the Company had 1,269 shareholders of record and 2,739,405 outstanding shares of common stock.

22             2014 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 May 2013 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, 2014. Based upon this assessment, management believes that our internal control over financial reporting is effective as of December 31, 2014.

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

2014 Report to Shareholders  |  CSB Bancorp, Inc.            23

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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, 2014 and 2013, 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, 2014. These consolidated financial statements are the responsibility of CSB Bancorp, Inc.’s management. Our responsibility is to express an opinion on these 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 audit 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, 2014 and 2013, and the consolidated results of their operations and their cash flows for each of the three years then ended, in conformity with U.S. generally accepted accounting principles.

Wexford, Pennsylvania

March 5, 2015

24             2014 Report to Shareholders  |  CSB Bancorp, Inc.

CONSOLIDATED BALANCE SHEETS

December 31, 2014 and 2013

(Dollars in thousands, except share data)	2014			2013
ASSETS
Cash and cash equivalents
Cash and due from banks	$	15,310		$	15,777
Interest-earning deposits in other banks		28,613			26,822
Total cash and cash equivalents		43,923			42,599
Securities
Available-for-sale, at fair value		100,108			101,722
Held-to-maturity; fair value of $38,950 in 2014 and $42,643 in 2013		38,316			44,350
Restricted stock, at cost		4,614			5,463
Total securities		143,038			151,535
Loans held for sale		75			–
Loans		410,903			379,125
Less allowance for loan losses		4,381			5,085
Net loans		406,522			374,040
Premises and equipment, net		8,286			8,690
Core deposit intangible		629			759
Goodwill		4,728			4,728
Bank-owned life insurance		9,815			9,551
Accrued interest receivable and other assets		3,965			4,563
TOTAL ASSETS	$	620,981		$	596,465
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits
Noninterest-bearing	$	139,251		$	120,325
Interest-bearing		360,824			360,608
Total deposits		500,075			480,933
Short-term borrowings		46,627			48,671
Other borrowings		14,953			12,459
Accrued interest payable and other liabilities		1,876			1,991
Total liabilities		563,531			544,054
SHAREHOLDERS’ EQUITY
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares; outstanding 2,739,405 shares in 2014 and 2,736,634 in 2013		18,629			18,629
Additional paid-in capital		9,884			9,964
Retained earnings		34,090			30,232
Treasury stock at cost - 241,197 shares in 2014 and 243,968 in 2013		(4,871	)		(4,958	)
Accumulated other comprehensive loss		(282	)		(1,456	)
Total shareholders’ equity		57,450			52,411
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	620,981		$	596,465

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

2014 Report to Shareholders  |  CSB Bancorp, Inc.            25

CONSOLIDATED STATEMENTS OF INCOME

Years Ended December 31, 2014, 2013 and 2012

(Dollars in thousands, except per share data)	2014		2013		2012
INTEREST AND DIVIDEND INCOME
Loans, including fees	$	18,290	$	17,963	$	17,279
Taxable securities		2,857		2,572		2,672
Nontaxable securities		466		513		486
Other		43		90		147
Total interest and dividend income		21,656		21,138		20,584
INTEREST EXPENSE
Deposits		1,166		1,720		2,323
Short-term borrowings		77		67		91
Other borrowings		486		468		564
Total interest expense		1,729		2,255		2,978
NET INTEREST INCOME		19,927		18,883		17,606
PROVISION FOR LOAN LOSSES		643		840		823
Net interest income, after provision for loan losses		19,284		18,043		16,783
NONINTEREST INCOME
Service charges on deposit accounts		1,269		1,349		1,305
Trust services		811		826		671
Debit card interchange fees		910		779		797
Securities gains		133		159		–
Gain on sale of loans, net		198		347		591
Other income		929		858		840
Total noninterest income		4,250		4,318		4,204
NONINTEREST EXPENSES
Salaries and employee benefits		8,321		8,261		7,960
Occupancy expense		1,014		1,026		1,025
Equipment expense		715		719		618
Professional and director fees		725		628		814
Franchise tax expense		361		581		542
Marketing and public relations		378		395		392
Software expense		727		530		391
Debit card expense		421		291		331
Amortization of intangible assets		130		135		140
FDIC insurance expense		358		359		328
Net cost of operation of other real estate		–		9		33
Other expenses		1,932		1,914		1,876
Total noninterest expenses		15,082		14,848		14,450
Income before income taxes		8,452		7,513		6,537
FEDERAL INCOME TAX PROVISION		2,568		2,273		1,990
NET INCOME	$	5,884	$	5,240	$	4,547
NET INCOME PER SHARE
Basic	$	2.15	$	1.91	$	1.66
Diluted	$	2.15	$	1.91	$	1.66

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             2014 Report to Shareholders  |  CSB Bancorp, Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years Ended December 31, 2014, 2013 and 2012

(Dollars in thousands)	2014			2013			2012
Net income	$	5,884		$	5,240		$	4,547
Other comprehensive income (loss)
Unrealized gains (losses) arising during the period		1,612			(3,195	)		657
Unrealized losses on held-to-maturity transfer		–			(1,931	)		–
Amounts reclassified from accumulated other comprehensive income, held-to-maturity		301			255			–
Income tax effect		(651	)		1,656			(223	)
Reclassification adjustment for gains on available for sale securities included in net income		(133	)		(159	)		–
Income tax effect		45			54			–
Other comprehensive income (loss)		1,174			(3,320	)		434
Total comprehensive income	$	7,058		$	1,920		$	4,981

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Years Ended December 31, 2014, 2013 and 2012

												Accumulated
			Additional									Other
	Common		Paid-in			Retained			Treasury			Comprehensive
(Dollars in thousands)	Stock		Capital			Earnings			Stock			Income (Loss)			Total
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
Net income		–		–			5,884			–			–			5,884
Other comprehensive income		–		–			–			–			1,174			1,174
Stock options exercised, 2,771 shares		–		(80	)		–			87			–			7
Cash dividends declared, $0.74 per share		–		–			(2,026	)		–			–			(2,026	)
BALANCE AT   DECEMBER 31, 2014	$	18,629	$	9,884		$	34,090		$	(4,871	)	$	(282	)	$	57,450

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

2014 Report to Shareholders  |  CSB Bancorp, Inc.            27

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31, 2014, 2013 and 2012

(Dollars in thousands)	2014			2013			2012
CASH FLOWS FROM   OPERATING ACTIVITIES
Net income	$	5,884		$	5,240		$	4,547
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises, equipment and software		928			779			644
Deferred income taxes		175			77			(50	)
Provision for loan losses		643			840			823
Gain on sale of loans, net		(198	)		(347	)		(591	)
Securities gain, net		(133	)		(159	)		–
Security amortization, net of accretion		361			456			553
Secondary market loan sale proceeds		6,506			12,393			20,873
Originations of secondary market loans held-for-sale		(6,383	)		(12,106	)		(20,384	)
Bank-owned life insurance		(264	)		(253	)		(230	)
Effects of changes in operating assets and liabilities:
Net deferred loan (fees) costs		(81	)		(214	)		63
Accrued interest receivable		45			(57	)		32
Accrued interest payable		(12	)		(39	)		(47	)
Other assets and liabilities		(308	)		339			831
Net cash provided by operating activities	$	7,163		$	6,949		$	7,064
CASH FLOWS FROM   INVESTING ACTIVITIES
Securities:
Proceeds from repayments, available-for-sale	$	35,337		$	36,200		$	76,220
Proceeds from repayments, held-to-maturity		9,273			1,211			–
Purchases, available-for-sale		(34,893	)		(55,693	)		(82,382	)
Purchases, held-to-maturity		(3,000	)		(8,135	)		–
Proceeds from sale of securities, available-for-sale		2,483			4,309			–
Proceeds from redemption of restricted stock		849			–			–
Loan originations, net of repayments		(33,043	)		(14,666	)		(40,842	)
Proceeds from sale of other real estate		–			18			26
Property, equipment and software acquisitions		(427	)		(1,526	)		(953	)
Purchase of bank-owned life insurance		–			(1,000	)		(5,000	)
Net cash used in investing activities	$	(23,421	)	$	(39,282	)	$	(52,931	)

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             2014 Report to Shareholders  |  CSB Bancorp, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31, 2014, 2013 and 2012

(Dollars in thousands)	2014			2013			2012
CASH FLOWS FROM   FINANCING ACTIVITIES
Net change in deposits	$	19,151		$	5,550		$	32,021
Net change in short-term borrowings		(2,044	)		4,679			6,919
Proceeds from other borrowings		5,000			–			–
Repayment of other borrowings		(2,506	)		(213	)		(6,489	)
Cash dividends paid		(2,026	)		(1,970	)		(1,969	)
Proceeds from stock options exercised		7			8			5
Net cash provided by financing activities	$	17,582		$	8,054		$	30,487
NET INCREASE (DECREASE) IN CASH   AND CASH EQUIVALENTS		1,324			(24,279	)		(15,380	)
CASH AND CASH EQUIVALENTS AT   BEGINNING OF YEAR		42,599			66,878			82,258
CASH AND CASH EQUIVALENTS AT   END OF YEAR	$	43,923		$	42,599		$	66,878
SUPPLEMENTAL DISCLOSURES
Cash paid during the year for:
Interest	$	1,750		$	2,356		$	3,155
Income taxes		2,500			2,335			1,690
Noncash investing activities:
Transfer of loans to other real estate owned		–			–			56
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.

2014 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, 2014 and 2013.

SECURITIES

At the time of purchase all securities are evaluated and designated as available-for-sale or held-to-maturity. 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 of U.S. Government agencies and mortgage-backed securities of government agencies were transferred from available-for-sale to held-to-maturity. At December 31, 2014, 27% 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 it would if the entire portfolio was included in the available-for sale category. 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 noninterest income in the Consolidated Statements of Income.

30             2014 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 2014 and 2013, 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, 2014 or 2013.

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, construction loans and troubled debt restructurings 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 noninterest expenses, as are gains or losses upon sale and expenses related to maintenance of the properties. There was no other real estate owned at December 31, 2014 and 2013.

2014 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. Leasehold improvements are amortized over the useful life of the asset.

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 2014 or 2013.

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 2014, 2013 and 2012 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 carry forwards. 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             2014 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. As of December 31, 2014, there was no unrecognized compensation cost related to unvested share-based compensation awards outstanding. All shares are vested. The Company recorded no stock-based compensation expense for 2014, 2013 or 2012.

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, 2014 and 2013.

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:

	2014			2013			2012
Weighted average common shares		2,980,602			2,980,602			2,980,602
Average treasury shares		(242,966	)		(244,129	)		(245,713	)
Total weighted average common shares outstanding (basic)		2,737,636			2,736,473			2,734,889
Dilutive effect of assumed exercise of stock options		1,442			2,004			252
Weighted average common shares outstanding (diluted)		2,739,078			2,738,477			2,735,141

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, 2014. Options to purchase an aggregate of 11,904 and 30,760 common shares were outstanding at December 31, 2014 and 2013.

ACCOUNTING DEVELOPMENTS

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. This Update is not expected to have a significant impact on the Company’s financial statements.

2014 Report to Shareholders  |  CSB Bancorp, Inc.            33

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting Update.

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. This Update is not expected to have a significant impact on the Company’s financial statements.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. 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. This Update is not expected to have a significant impact on the Company’s financial statements.

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards. This Update eliminates from GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This Update is not expected to have a significant impact on the Company’s financial statements.

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             2014 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – SECURITIES

Securities consist of the following at December 31:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
2014
Available-for-sale:
U.S. Treasury security	$	1,004	$	–	$	4	$	1,000
U.S. Government agencies		25,228		6		155		25,079
Mortgage-backed securities of government agencies		47,696		730		79		48,347
Other mortgage-backed securities		139		2		–		141
Asset-backed securities of government agencies		2,606		3		5		2,604
State and political subdivisions		17,878		433		44		18,267
Corporate bonds		4,503		40		1		4,542
Equity securities		106		22		–		128
Total available-for-sale		99,160		1,236		288		100,108
Held-to-maturity securities
U.S. Government agencies		16,343		294		2		16,635
Mortgage-backed securities of government agencies		21,973		398		56		22,315
Total held-to-maturity		38,316		692		58		38,950
Restricted stock		4,614		–		–		4,614
Total securities	$	142,090	$	1,928	$	346	$	143,672
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

2014 Report to Shareholders  |  CSB Bancorp, Inc.            35

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – SECURITIES (CONTINUED)

The amortized cost and fair value of debt securities at December 31, 2014, 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.

	Amortized		Fair
(Dollars in thousands)	Cost		Value
Available-for-sale:
Due in one year or less	$	4,649	$	4,684
Due after one through five years		20,221		20,332
Due after five through ten years		23,289		23,427
Due after ten years		50,895		51,537
Total debt securities available-for-sale	$	99,054	$	99,980
Held-to-maturity:
Due in one year or less	$	–	$	–
Due after one through five years		–		–
Due after five through ten years		8,692		8,830
Due after ten years		29,624		30,120
Total debt securities held-to-maturity	$	38,316	$	38,950

Securities with a market value of approximately $88.4 million and $87.9 million were pledged at December 31, 2014 and 2013, 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 $4.1 million and $5 million at December 31, 2014 and 2013, respectively. Federal Reserve Bank stock was $471 thousand at December 31, 2014 and 2013.

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 2014 and 2013. There were no securities sold during 2012.

(Dollars in thousands)	2014		2013
Proceeds	$	2,483	$	4,309
Realized gains	$	133	$	159
Realized losses		–		–
Net securities gains	$	133	$	159

36             2014 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
	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
(Dollars in thousands)	Losses		Value		Losses		Value		Losses		Value
2014
Available-for-sale
U.S. Treasury security	$	4	$	1,000	$	–	$	–	$	4	$	1,000
U.S. Government agencies		12		5,188		143		5,856		155		11,044
Mortgage-backed securities of government agencies		40		6,348		39		4,939		79		11,287
Asset-backed securities of government agencies		5		1,603		–		–		5		1,603
State and political subdivisions		13		1,300		31		1,416		44		2,716
Corporate bonds		1		499		–		–		1		499
Held-to-maturity
U.S. Government agencies		2		998		–		–		2		998
Mortgage-backed securities of government agencies		–		–		56		9,265		56		9,265
Total temporarily impaired securities	$	77	$	16,936	$	269	$	21,476	$	346	$	38,412
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

There were thirty-four (34) securities in an unrealized loss position at December 31, 2014, nineteen (19) 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, 2014.

2014 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)	2014		2013
Commercial	$	123,813	$	117,478
Commercial real estate		139,695		129,828
Residential real estate		121,684		111,445
Construction & land development		17,446		13,444
Consumer		7,913		6,687
Total loans before deferred costs		410,551		378,882
Deferred loan costs		352		243
Total loans	$	410,903	$	379,125

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, 2014 and 2013, approximately 77% 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.

38             2014 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – LOANS (CONTINUED)

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, 2014 and 2013, there were no concentrations of loans 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, 2014, 2013 and 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. During 2014, the increase in the provision for possible loan losses related to commercial loans was primarily due to the increase in the historical loss rate of loans in this category. The increase in the provision related to commercial real estate loans was affected by an increase in loan balances, offset by a decrease in impaired loans. The decrease in the provision related to residential real estate loans was affected by the decrease in the specific allocation amounts related to impaired residential real estate loans, as well as a decrease in the historical loss rates of the loans in this category. The decrease in the provision related to construction and consumer loans was due to the decrease in the historical loss rates in both of these categories.

										Construction
				Commercial			Residential			& Land
(Dollars in thousands)	Commercial			Real Estate			Real Estate			Development			Consumer			Unallocated			Total
December 31, 2014
Beginning balance	$	1,219		$	1,872		$	1,205		$	178		$	91		$	520		$	5,085
Provision for loan losses		1,047			23			(164	)		(36	)		(34	)		(193	)		643
Charge-offs		(1,005	)		(379	)		(27	)		–			(11	)					(1,422	)
Recoveries		28			8			25			–			14						75
Net charge-offs		(977	)		(371	)		(2	)		–			3						(1,347	)
Ending balance	$	1,289		$	1,524		$	1,039		$	142		$	60		$	327		$	4,381
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

2014 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:

							Construction
			Commercial		Residential		& Land
(Dollars in thousands)	Commercial		Real Estate		Real Estate		Development		Consumer		Unallocated		Total
2014
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$	–	$	109	$	75	$	–	$	–	$	–	$	184
Collectively evaluated for impairment		1,289		1,415		964		142		60		327		4,197
Total ending allowance balance	$	1,289	$	1,524	$	1,039	$	142	$	60	$	327	$	4,381
Loans:
Loans individually evaluated for impairment	$	5,922	$	1,679	$	1,612	$	–	$	–			$	9,213
Loans collectively evaluated for impairment		117,891		138,016		120,072		17,446		7,913				401,338
Total ending loans balance	$	123,813	$	139,695	$	121,684	$	17,446	$	7,913			$	410,551
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

40             2014 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:

			Recorded
	Unpaid		Investment		Recorded		Total				Average		Interest
	Principal		With No		Investment		Recorded		Related		Recorded		Income
(Dollars in thousands)	Balance		Allowance		With Allowance		Investment		Allowance		Investment		Recognized
2014
Commercial	$	7,011	$	5,889	$	37	$	5,926	$	–	$	6,739	$	208
Commercial real estate		1,836		950		728		1,678		109		2,723		90
Residential real estate		1,721		885		730		1,615		75		1,796		61
Construction & land development		–		–		–		–		–		–		–
Total impaired loans	$	10,568	$	7,724	$	1,495	$	9,219	$	184	$	11,258	$	359
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

2014 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:

											Total Past
			30-59 Days		60-89 Days		90 Days +				Due and		Total
(Dollars in thousands)	Current		Past Due		Past Due		Past Due		Nonaccrual		Nonaccrual		Loans
2014
Commercial	$	122,283	$	362	$	96	$	1	$	1,071	$	1,530	$	123,813
Commercial real estate		137,683		174		104		–		1,734		2,012		139,695
Residential real estate		120,025		424		92		280		863		1,659		121,684
Construction & land development		17,431		–		15		–		–		15		17,446
Consumer		7,798		73		42		–		–		115		7,913
Total loans	$	405,220	$	1,033	$	349	$	281	$	3,668	$	5,331	$	410,551
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

Troubled Debt Restructurings

The Company had troubled debt restructurings (“TDRs”) of $6.8 million as of December 31, 2014, with $88 thousand of specific reserves allocated to customers whose loan terms have been modified in TDRs. As of December 31, 2013, the Company had TDRs of $8.6 million, with $583 thousand of specific reserves allocated. At December 31, 2014, $6.3 million of the loans classified as TDRs were performing in accordance with their modified terms. Of the remaining $518 thousand, all were in nonaccrual of interest status.

None of the loans that were restructured in 2012 or 2013 have defaulted in 2013 or 2014. 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:

	Number Of		Pre-Modification		Post-Modification
(Dollars in thousands)	Loans Restructured		Recorded Investment		Recorded Investment
2014
Residential real estate		1	$	84	$	84
Total restructured loans		1	$	84	$	84
2013
Commercial real estate		3	$	83	$	83
Residential real estate		3		264		264
Total restructured loans		6	$	347	$	347

42             2014 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:

			Special						Not
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Rated		Total
2014
Commercial	$	112,467	$	3,809	$	6,690	$	–	$	847	$	123,813
Commercial real estate		129,792		4,898		3,634		–		1,371		139,695
Residential real estate		209		–		39		–		121,436		121,684
Construction & land development		13,889		1,579		–		–		1,978		17,446
Consumer		–		–		–		–		7,913		7,913
Total	$	256,357	$	10,286	$	10,363	$	–	$	133,545	$	410,551
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

2014 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
2014
Commercial	$	847	$	–	$	847
Commercial real estate		1,371		–		1,371
Residential real estate		120,332		1,104		121,436
Construction & land development		1,978		–		1,978
Consumer		7,913		–		7,913
Total	$	132,441	$	1,104	$	133,545
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

Mortgage Servicing Rights

For the years ended December 31, 2014 and 2013, the Company had outstanding mortgage servicing rights (“MSRs”) of $222 thousand and $225 thousand, respectively. No valuation allowance was recorded at December 31, 2014 or 2013 as the fair value of the MSRs exceeded their carrying value. On December 31, 2014, the Company had $55.5 million residential mortgage loans with servicing retained as compared to $56.9 million with servicing retained at December 31, 2013.

Total loans serviced for others approximated $70.6 million and $70.2 million at December 31, 2014 and 2013, respectively.

44             2014 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)	2014		2013
Land and improvements	$	1,489	$	1,489
Buildings and improvements		9,665		9,656
Furniture and equipment		7,567		7,327
Leasehold improvements		260		260
		18,981		18,732
Accumulated depreciation		10,695		10,042
Premises and equipment, net	$	8,286	$	8,690

The Bank leases certain office locations. Total rental expense under these leases approximated $299 thousand, $299 thousand, and $298 thousand in 2014, 2013 and 2012, respectively. Depreciation expense amounted to $653 thousand, $625 thousand and $567 thousand for the years ended December 31, 2014, 2013 and 2012, respectively.

Future minimum lease payments at December 31, 2014 were as follows:

(Dollars in thousands)
2015	$	294
2016		172
2017		32
Total	$	498

NOTE 5 – CORE DEPOSIT INTANGIBLE ASSETS

Core Deposit Intangible

No additional core deposit intangible was recorded in 2014, 2013 or 2012. 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 $130 thousand, $135 thousand and $140 thousand in 2014, 2013 and 2012, respectively. The following table shows the core deposit intangible and the related accumulated amortization as of December 31:

(Dollars in thousands)	2014			2013			2012
Gross carrying amount	$	1,251		$	1,251		$	1,251
Accumulated amortization		(622	)		(492	)		(357	)
Net carrying amount	$	629		$	759		$	894

2014 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, 2014 is as follows:

	Core Deposit
(Dollars in thousands)	Amortization
2015	$	125
2016		121
2017		116
2018		101
2019		63
Thereafter		103
	$	629

NOTE 6 – INTEREST-BEARING DEPOSITS

Interest-bearing deposits at December 31 are as follows:

(Dollars in thousands)	2014		2013
Demand	$	77,725	$	76,327
Savings		155,336		149,937
Time deposits:
In excess of $250,000		13,191		12,280
Other		114,572		122,064
Total interest-bearing deposits	$	360,824	$	360,608
At December 31, 2014, stated maturities of time deposits were as follows:
(Dollars in thousands)
2015	$	66,964
2016		26,155
2017		14,910
2018		15,323
2019		4,389
2020 and beyond		22
Total	$	127,763

46             2014 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)	2014			2013
Balance at year-end	$	46,627		$	48,671
Average balance outstanding		51,855			45,330
Maximum month-end balance		63,717			48,671
Weighted-average rate at year-end		0.14	%		0.15	%
Weighted-average rate during the year		0.15			0.15

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:

					Weighted
					Average			Stated Interest
	Maturity Range				Interest			Rate Range						At December 31,
(Dollars in thousands)	From		To		Rate			From			To			2014		2013
Fixed rate		10/2/14		12/21/17		3.61	%		3.48	%		3.73	%	$	10,000	$	12,000
Fixed rate amortizing		1/1/14		4/1/24		1.42			1.16			7.15			4,953		459
														$	14,953	$	12,459

Maturities of other borrowings at December 31, 2014, are summarized as follows for the years ended December 31:

			Weighted
			Average
(Dollars in thousands)	Amount		Rate
2015	$	1,488		1.71	%
2016		1,079		1.58
2017		10,730		3.44
2018		534		1.16
2019 and beyond		1,122		1.16
	$	14,953		2.88	%

Monthly principal and interest payments, as well as 10% - 20% principal curtailments on the borrowings’ anniversary dates are due on the fixed-rate amortizing borrowings. FHLB borrowings are secured by a blanket collateral agreement. At December 31, 2014 the Company has the capacity to borrow an additional $46.1 million from the FHLB.

2014 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)	2014		2013		2012
Current	$	2,393	$	2,196	$	2,040
Deferred		175		77		(50	)
Total income tax provision	$	2,568	$	2,273	$	1,990

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)	2014			2013			2012
Expected provision using statutory federal income tax rate	$	2,874		$	2,554		$	2,223
Tax-exempt income on state and municipal securities and political subdivision loans		(188	)		(203	)		(269	)
Interest expense associated with carrying certain state and municipal securities and political subdivision loans		4			6			6
Tax-exempt income on bank owned life insurance		(90	)		(86	)		(78	)
Other		(32	)		2			108
Total income tax provision	$	2,568		$	2,273		$	1,990

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)	2014			2013
Allowance for loan losses	$	1,648		$	1,887
Net operating loss carryforward		341			470
Capital loss carryforward		–			35
Unrealized loss on securities available-for-sale		145			750
Other		41			37
		2,175			3,179
Valuation allowance on deferred tax assets		–			(35	)
Deferred tax assets		2,175			3,144
Premises and equipment		(374	)		(443	)
Federal Home Loan Bank stock dividends		(609	)		(736	)
Deferred loan fees		(282	)		(226	)
Prepaid expenses		(159	)		(120	)
Other		(374	)		(462	)
Deferred tax liabilities		(1,798	)		(1,987	)
Net deferred tax asset	$	377		$	1,157

48             2014 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 – INCOME TAXES (CONTINUED)

The Company has a net operating loss tax carry-forward of approximately $1 million, as of December 31, 2014. The net operating loss carryforward can be used to offset future taxable income and will begin to expire in tax year 2026.

The Company recognized the benefit of a capital loss carryforward due to expire in 2014 with the redemption of Federal Home Loan stock in 2014. The valuation allowance for the capital loss carry forward was reversed during 2014. 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. The Company 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, the Company is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years prior to 2011.

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 2014 and 2013, and 2.5% of each eligible participant’s compensation for 2012, 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 $269 thousand, $284 thousand and $270 thousand for 2014, 2013 and 2012, 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:

	2014						2013						2012
				Weighted						Weighted						Weighted
				Average						Average						Average
				Exercise						Exercise						Exercise
	Shares			Price			Shares			Price			Shares			Price
Outstanding at beginning of year		30,760		$	17.90			31,760		$	17.85			39,620		$	17.49
Granted		–			–			–			–			–			–
Exercised		(18,856	)		(17.84	)		(1,000	)		(16.10	)		(4,650	)		(16.05	)
Forfeited		–						–						(3,210	)		(16.06	)
Outstanding at end of year		11,904			18.00			30,760			17.90			31,760			17.85
Options exercisable at year-end		11,904		$	18.00			30,760		$	17.90			31,760		$	17.85
Weighted-average fair value of options granted during year					N/A						N/A						N/A

Options outstanding at December 31, 2014 were as follows:

			Outstanding
			Weighted
			Average				Weighted
			Remaining				Average
Exercise			Contractual				Exercise
Price	Number		Life (Years)		Number		Price
$ 18.00		11,904		1.23		11,904	$	18.00

2014 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 $48 thousand and $34 thousand at December 31, 2014 and 2013, respectively. There were no share awards vested in 2014, 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)	2014		2013
Commitments to extend credit	$	126,387	$	119,571
Letters of credit	$	1,778	$	679

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, 2014 are due on demand or expire in 2015. 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 years ended December 31:

(Dollars in thousands)	2014		2013
Balance at beginning of year	$	5,092	$	6,218
New loans and advances		72		315
Repayments, including loans sold		747		1,441
Balance at end of year	$	4,417	$	5,092

Deposits from executive officers, directors and their related business interests at both December 31, 2014 and 2013 were approximately $10.4 million.

50             2014 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, 2014 and 2013 that the Company and Bank met or exceeded all capital adequacy requirements to which they are subject.

As of December 31, 2014, 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
2014
Total capital (to risk-weighted assets)
Consolidated	$	56,742		13.6	%	$	33,488		8.0	%	$	41,861		10.0	%
Bank		55,731		13.3			33,464		8.0			41,830		10.0
Tier 1 capital (to risk-weighted assets)
Consolidated		52,353		12.5			16,744		4.0			25,116		6.0
Bank		51,342		12.3			16,732		4.0			25,098		6.0
Tier 1 capital (to average assets)
Consolidated		52,353		8.5			24,602		4.0			30,753		5.0
Bank		51,342		8.4			24,597		4.0			30,746		5.0
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 1 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 1 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

2014 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, 2015, the Bank could dividend $9.5 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, 2014 and 2013 and for each of the three years in the period ended December 31, 2014 follows:

(Dollars in thousands)	2014			2013
CONDENSED BALANCE SHEETS
ASSETS
Cash deposited with subsidiary bank	$	699		$	598
Investment in subsidiary bank		56,424			51,596
Securities available-for-sale		128			128
Other assets		199			192
TOTAL ASSETS	$	57,450		$	52,514
LIABILITIES AND SHAREHOLDERS’ EQUITY
Total liabilities	$	–		$	103
Total shareholders’ equity		57,450			52,411
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	57,450		$	52,514
(Dollars in thousands)	2014			2013			2012
CONDENSED STATEMENTS OF INCOME
Interest on securities	$	2		$	2		$	2
Dividends from subsidiary		2,400			2,400			2,000
Total income		2,402			2,402			2,002
Operating expenses		312			356			354
Income before taxes and undistributed equity income of subsidiary		2,090			2,046			1,648
Income tax benefit		(141	)		(121	)		(120	)
Equity earnings in subsidiary, net of dividends		3,653			3,073			2,779
NET INCOME	$	5,884		$	5,240		$	4,547
COMPREHENSIVE INCOME	$	7,058		$	1,920		$	4,981

52             2014 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 13 – CONDENSED PARENT COMPANY FINANCIAL INFORMATION (CONTINUED)

(Dollars in thousands)	2014			2013			2012
CONDENSED STATEMENTS OF CASH FLOWS
Cash flows from operating activities:
Net income	$	5,884		$	5,240		$	4,547
Adjustments to reconcile net income to cash provided by operations:
Equity earnings in subsidiary, net of dividends		(3,653	)		(3,073	)		(2,779	)
Change in other assets, liabilities		(111	)		42			49
Net cash provided by operating activities		2,120			2,209			1,817
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		(2,026	)		(1,970	)		(1,969	)
Cash received from exercise of stock options		7			8			5
Net cash used in financing activities		(2,019	)		(1,962	)		(1,964	)
Increase (decrease) in cash		101			210			(147	)
Cash at beginning of year		598			388			535
Cash at end of year	$	699		$	598		$	388

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.

2014 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, 2014 and December 31, 2013, 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
Assets:				December 31, 2014
Securities available-for-sale
U.S. Treasury security	$	1,000	$	–	$	–	$	1,000
U.S. Government agencies		–		25,079		–		25,079
Mortgage-backed securities of government agencies		–		48,347		–		48,347
Other mortgage-backed securities		–		141		–		141
Asset-backed securities of government agencies		–		2,604		–		2,604
State and political subdivisions		–		18,267		–		18,267
Corporate bonds		–		4,542		–		4,542
Total debt securities		1,000		98,980		–		99,980
Equity securities		128		–		–		128
Total available-for-sale securities	$	1,128	$	98,980	$	–	$	100,108
Assets:				December 31, 2013
Securities available-for-sale
U.S. Treasury security	$	997	$	–	$	–	$	997
U.S. Government agencies		–		22,301		–		22,301
Mortgage-backed securities of government agencies		–		54,300		–		54,300
Other mortgage-backed securities		–		235		–		235
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

54             2014 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, 2014 and December 31, 2013, 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.

(Dollars in thousands)	Level I			Level II		Level III		Total
Assets measured on a nonrecurring basis:			December 31, 2014
Impaired loans	$	–		$	–	$	9,029	$	9,029
Assets measured on a nonrecurring basis:			December 31, 2013
Impaired loans	$	–		$	–	$	9,856	$	9,856

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
	Fair Value		Valuation	Unobservable	Range
(Dollars in thousands)	Estimate		Techniques	Input	(Weighted Average)
				December 31, 2014
			Discounted	Remaining term	2 mos to 28 yrs / (62 mos)
Impaired loans	$	6,539	cash flow	Discount rate	3.1% to 8.3% / (4.6%)
			Appraisal of	Appraisal adjustments2	–20% to –25% (–24%)
		2,490	collateral1,3	Liquidation expense2	–10%
				December 31, 2013
			Discounted	Remaining term	3 mos to 29 yrs / (62 mos)
Impaired loans	$	8,663	cash flow	Discount rate	7.1% to 12% / (7.5%)
			Appraisal of	Appraisal adjustments2	–20% to –25% (–24%)
		1,193	collateral1,3	Liquidation expense2	–10%

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

²Appraisals 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.

³Includes qualitative adjustments by management and estimated liquidation expenses.

2014 Report to Shareholders  |  CSB Bancorp, Inc.            55

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 15 – FAIR VALUES OF FINANCIAL INSTRUMENTS

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

	2014
(Dollars in thousands)	Carrying Value		Level I		Level II		Level III		Total Fair Value
Financial assets:
Cash and cash equivalents	$	43,923	$	43,923	$	–	$	–	$	43,923
Securities available-for-sale		100,108		1,128		98,980		–		100,108
Securities held-to-maturity		38,316		–		38,950		–		38,950
Restricted stock		4,614		4,614		–		–		4,614
Loans held for sale		75		75		–		–		75
Net loans		406,522		–		–		411,168		411,168
Bank-owned life insurance		9,815		9,815		–		–		9,815
Accrued interest receivable		1,329		1,329		–		–		1,329
Mortgage servicing rights		222		–		–		222		222
Financial liabilities:
Deposits	$	500,075	$	372,312	$	–	$	128,445	$	500,757
Short-term borrowings		46,627		46,627		–		–		46,627
Other borrowings		14,953		–		–		15,348		15,348
Accrued interest payable		84		84		–		–		84
	2013
(Dollars in thousands)	Carrying Value		Level I		Level II		Level III		Total Fair 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
Mortgage servicing rights		225		–		–		225		225
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             2014 Report to Shareholders  |  CSB Bancorp, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 15 – FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

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

Cash and cash equivalents; Loans held for sale; Accrued interest receivable; Mortgage servicing rights; 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, 2014 and 2013. These financial instruments relate to commitments to extend credit and letters of credit. The aggregated contract amount of such financial instruments was approximately $128.2 million at December 31, 2014 and $120.3 million at December 31, 2013. 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.

2014 Report to Shareholders  |  CSB Bancorp, Inc.            57

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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, 2014 and 2013.

(Dollars in thousands)	Pretax			Tax Effect			After-tax			Affected Line Item in the Consolidated Statements of Income
Balance as of December 31, 2013		$  (2,207)			$    751			$  (1,456)
Unrealized holding gain on available-for-sale securities arising during the period		1,612			(549	)		1,063
Amount reclassified for net gains included in net income		(133	)		45			(88	)	(a) (b)
Amortization of held-to-maturity discount resulting from transfer		301			(102	)		199
Total other comprehensive loss		1,780			(606	)		1,174
BALANCE AS OF   DECEMBER 31, 2014		$     (427)			$    145			$    (282)
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)

(a) Securities gain, net.

(b) Federal income tax provision.

58             2014 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
2014								`
First quarter		$  5,336		$  4,898		$  1,416		$  0.52		$  0.52
Second quarter		5,484		5,045		1,522		0.55		0.55
Third quarter		5,435		4,997		1,507		0.55		0.55
Fourth quarter		5,401		4,987		1,439		0.53		0.53
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

2014 Report to Shareholders  |  CSB Bancorp, Inc.            59

OFFICERS OF THE COMMERCIAL AND SAVINGS BANK

STEVEN R. BAILEY	PAULA S. FOY	PAULA J. MEILER	EDDIE L. STEINER
Executive Vice President,	Vice President,	Senior Vice President,	Chairman,
Chief Operations Officer,	Compliance Officer/BSA Officer	Chief Financial Officer	President,
Chief Information Officer			Chief Executive Officer
	LORI S. FRANTZ	A. LEE MILLER
PAMELA S. BASINGER	Assistant Vice President,	Vice President,	STEVEN J. STIFFLER
Vice President,	Banking Center Manager	Cash Management & Special	Vice President,
Financial Officer		Projects, CRA Officer	Commercial Banker
	BRETT A. GALLION
DEBORAH S. BERNER	Vice President,	EDWARD J. MILLER	ERIC D. STROUSE
Vice President,	Senior Information Officer	Vice President,	Vice President,
Retail Services Manager,		Operation Services Manager,	Commercial Banker
Marketing & Public Relations	CARRIE A. GERBER	Security
	Credit Officer		ELAINE A. TEDROW
PAMELA L. BROMUND		MOLLY M. MOHR	Assistant Vice President,
Assistant Vice President,	ERIC S. GERBER	Assistant Vice President,	Banking Center Manager
Loan Operations Supervisor	Assistant Vice President,	Banking Center Manager
	Commercial Banker		JENNIFER M. THORPE
WENDY D. BROWN		DANIEL L. MUSE	Assistant Vice President,
Assistant Vice President,	KENDRA E. GUNDRUM	Operations Officer	Senior Credit Analyst
Bank Operations Manager	Officer,
	Banking Center Manager	TODD R. NICOLAS	WILLIAM R. TINLIN
C. DAWN BUTLER		Vice President,	Vice President,
Vice President,	MARC R. HARVEY	Commercial Banker	Recovery, Right to Financial
Regional Bank Manager	Assistant Vice President,		Privacy Officer
	Training Manager	SHAWN E. OSWALD
BEVERLY A. CARR		Vice President,	BRIAN D. TROYER
Operations Officer,	BENJAMIN J. HERSHBERGER	Information Technology	Vice President,
Bank Operations	Officer,	Director,OFAC Officer	Trust Officer
	Banking Center Manager
COLBY CHAMBERLIN		AMY R. PATTERSON	ALICIA R. WALLACE
Vice President,	JASON B. HUMMEL	Assistant Vice President,	Vice President,
Commercial Banker	Vice President,	Loan Officer	Commercial Banker
	Commercial Banker
DALE J. CLINTON		MELANIE S. RABER	JANE C. WHITMER
Vice President,	JULIE A. JONES	Officer,	Officer,
Internal Auditor	Vice President,	Commercial Loan	Assistant Banking Center
	Director of Human Resources	Documentation Supervisor	Manager
PEGGY L. CONN
Corporate Secretary	STEPHEN K. KILPATRICK	THOMAS S. RUMBAUGH	MICHAEL D. WORKMAN
	First Vice President,	Vice President,	Vice President,
MARIANNE DAVIS	Senior Credit Officer	Trust Officer	Mortgage Loan Officer,
Assistant Vice President,			Small Business Lender
Banking Center Manager	KEVIN J. MCALLISTER	LISA M. SCHONAUER
	Vice President,	Assistant Vice President,	ANTHONY YODER
CHRISTOPHER J. DELATORE	Trust Officer	Banking Center Manager	Officer,
Vice President,			Banking Center Manager
Commercial Banker	ROBYN E. MCCLINTOCK	REBECCA J. SHULTZ
	Vice President,	Assistant Vice President,	CRYSTAL R. YODER
DAVID J. DOLAN	Regional Bank Manager	Loan Officer	Operations Officer
Vice President,
Retail Lending Manager	JASON R. MCCULLOCH	BUD STEBBINS
	Vice President,	First Vice President,
CYNTHIA A. FERRY	Brokerage Manager	Senior Loan Officer
Assistant Vice President,
Banking Center Manager	SHERRY A. MCROBIE
	Assistant Vice President,
	Banking Center Manager

60             2014 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:

COMPUTERSHARE

Shareholder Services

P.O. Box 30170

College Station, Texas 77842-3170

800-368-5948

www.computershare.com/investor

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

Millersburg, Ohio 44654

330-763-2853

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

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

The annual meeting of shareholders is scheduled to be held on Wednesday, April 22, 2015 at 7:00 p.m. at the Carlisle Inn in Walnut Creek, Ohio.

honoring “DOC”DAN MILLER 36 YEARS OF DEDICATED SERVICE   Dr. Daniel J. Miller will retire from the Board of Directors of CSB Bancorp, Inc., effective at our April 22, 2015 shareholders’ meeting. “Doc” as he is commonly known, joined our Board in 1979 and has been instrumental in the continued growth and success of our Company.   When Doc joined the Board, the assets of the Bank stood at $40 million and we had a total of four Banking Centers, two in Millersburg, one in Walnut Creek and one in Winesburg. As Doc retires, CSB now stands at $620 million in assets, 16 Banking Centers in four counties, an Operations Center and Trust and Financial Services offices located in Millersburg and Wooster.   We graciously thank Doc for his dedication and years of service to our Company. We wish him the very best as he and his wife Mary continue on their journey.

2014 Report to Shareholders  |  CSB Bancorp, Inc.            61

BANKING CENTER INFORMATION

THE COMMERCIAL & SAVINGS BANK
INFORMATION & CUSTOMER SERVICE	330-674-9015 or 1-800-654-9015
24 HOUR PHONE BANKING	330-674-2720 or 1-888-438-2720
24 HOUR ONLINE BANKING, BILLPAY & MOBILE	www.csb1.com
LOAN SERVICES 91 North Clay Street, Millersburg	330-674-9015 or 1-800-654-9015
OPERATIONS CENTER 91 North Clay Street, Millersburg	330-674-9015
INVESTMENT SERVICES 91 South Clay Street, Millersburg	330-674-2397
TRUST SERVICES 91 North Clay Street, Millersburg	Holmes, Stark & Tuscarawas Counties 330-674-2397
TRUST SERVICES 305 West Liberty Street, Wooster	Wayne County 330-263-1955

CSB BANKING CENTERS
HOLMES REGION
BERLIN BANKING CENTER 4587 S.R. 39, Berlin (Drive-Up ATM)	330-893-3565
CHARM BANKING CENTER 4440 C.R. 70, Charm (Walk-Up ATM)	330-893-3323
MILLERSBURG CLINTON COMMONS BANKING CENTER 2102 Glen Drive, Millersburg (Drive-Up ATM)	330-674-2265
MILLERSBURG SOUTH CLAY BANKING CENTER 91 South Clay Street, Millersburg (Drive-Up ATM)	330-674-0687
WALNUT CREEK BANKING CENTER 4980 Olde Pump Street, Walnut Creek (Walk-Up ATM)	330-893-2961
WINESBURG BANKING CENTER 2225 U.S. 62, Winesburg (Drive-Up ATM)	330-359-5543
TUSCARAWAS & STARK REGION
GNADENHUTTEN BANKING CENTER 100 South Walnut Street, Gnadenhutten (Drive-Up ATM)	740-254-4313
NEW PHILADELPHIA BANKING CENTER 635 West High Avenue, New Philadelphia (Drive-Up ATM)	330-308-4867
NORTH CANTON BANKING CENTER 1210 North Main Street, North Canton (Drive-Up ATM)	330-497-0839
SUGARCREEK BANKING CENTER 127 South Broadway, Sugarcreek (Drive-Up ATM)	330-852-4444
WAYNE REGION
ORRVILLE AREA BANKING CENTER 461 Wadsworth Road, Orrville (Drive-Up ATM)	330-682-8000
ORRVILLE HIGH STREET BANKING CENTER 330 West High Street, Orrville (Drive-Up ATM)	330-682-8001
SHREVE BANKING CENTER 333 West South Street, Shreve (Drive-Up ATM)	330-567-2226
WOOSTER DOWNTOWN BANKING CENTER 305 West Liberty Street, Wooster (Drive-Up ATM)	330-263-1955
WOOSTER MILLTOWN BANKING CENTER 3562 Commerce Parkway, Wooster (Drive-Up ATM)	330-345-2031

62             2014 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 5, 2015, 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, 2014.

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

Wexford, Pennsylvania

March 23, 2015

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 23, 2015

/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 23, 2015

/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, 2014, 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 23, 2015

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, 2014, 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 23, 2015

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Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2014

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
2014
Total capital (to risk-weighted assets)
Consolidated	$	56,742		13.6	%	$	33,488		8.0	%	$	41,861		10.0	%
Bank		55,731		13.3			33,464		8.0			41,830		10.0
Tier 1 capital (to risk-weighted assets)
Consolidated		52,353		12.5			16,744		4.0			25,116		6.0
Bank		51,342		12.3			16,732		4.0			25,098		6.0
Tier 1 capital (to average assets)
Consolidated		52,353		8.5			24,602		4.0			30,753		5.0
Bank		51,342		8.4			24,597		4.0			30,746		5.0
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 1 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 1 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

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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, 2014	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 5,085	$ 4,580	$ 4,082
PROVISION FOR LOAN LOSSES	643	840	823
Charge-offs	(1,422)	(428)	(507)
Recoveries	75	93	182
Net charge-offs	(1,347)	(335)	(325)
Ending balance	4,381	5,085	4,580
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1,219	933	1,024
PROVISION FOR LOAN LOSSES	1,047	451	(78)
Charge-offs	(1,005)	(190)	(29)
Recoveries	28	25	16
Net charge-offs	(977)	(165)	(13)
Ending balance	1,289	1,219	933
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1,872	1,902	1,673
PROVISION FOR LOAN LOSSES	23	78	512
Charge-offs	(379)	(108)	(283)
Recoveries	8
Net charge-offs	(371)	(108)	(283)
Ending balance	1,524	1,872	1,902
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1,205	1,096	894
PROVISION FOR LOAN LOSSES	(164)	173	206
Charge-offs	(27)	(82)	(106)
Recoveries	25	18	102
Net charge-offs	(2)	(64)	(4)
Ending balance	1,039	1,205	1,096
Construction & Land Development [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	178	253	180
PROVISION FOR LOAN LOSSES	(36)	(75)	73
Ending balance	142	178	253
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	91	76	78
PROVISION FOR LOAN LOSSES	(34)	13	23
Charge-offs	(11)	(48)	(89)
Recoveries	14	50	64
Net charge-offs	3	2	(25)
Ending balance	60	91	76
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	520	320	233
PROVISION FOR LOAN LOSSES	(193)	200	87
Ending balance	$ 327	$ 520	$ 320

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Securities - Summary of Amortized Cost and Fair Value of Debt Securities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Available-for-sale:
Due in one year or less, Amortized Cost	$ 4,649
Due after one through five years, Amortized Cost	20,221
Due after five through ten years, Amortized Cost	23,289
Due after ten years, Amortized Cost	50,895
Total debt securities available-for-sale, Amortized Cost	99,054
Due in one year or less, Fair Value	4,684
Due after one through five years, Fair Value	20,332
Due after five through ten years, Fair Value	23,427
Due after ten years, Fair Value	51,537
Total debt securities available-for-sale, Fair Value	99,980
Held-to-maturity:
Due in one year or less, Amortized Cost	0
Due after one through five years, Amortized Cost	0
Due after five through ten years, Amortized Cost	8,692
Due after ten years, Amortized cost	29,624
Amortized Cost, Held to maturity	38,316	44,350
Due in one year or less, Fair Value	0
Due after one through five years, Fair Value	0
Due after five through ten years, Fair Value	8,830
Due after ten years, Fair Value	30,120
Total debt securities held-to-maturity, Fair Value	$ 38,950	$ 42,643

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Borrowings - Concerning of Other Borrowings (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Other borrowings	$ 14,953	$ 12,459
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	3.61%
Stated Interest Rate Range, From	3.48%
Stated Interest Rate Range, To	3.73%
Other borrowings	10,000	12,000
Fixed Rate Amortizing Borrowing [Member]
Debt Instrument [Line Items]
Maturity Date Range, From	Jan. 01, 2014
Maturity Date Range, To	Apr. 01, 2024
Weighted Average Interest Rate	1.42%
Stated Interest Rate Range, From	1.16%
Stated Interest Rate Range, To	7.15%
Other borrowings	$ 4,953	$ 459

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Loans - Allowances for Loan Losses and Ending Balances by Portfolio Segment and Impairment Method (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$ 184	$ 784
Collectively evaluated for impairment	4,197	4,301
Total ending allowance balance	4,381	5,085	4,580	4,082
Loans:
Loans individually evaluated for impairment	9,213	10,640
Loans collectively evaluated for impairment	401,338	368,242
Total ending loans balance	410,551	378,882
Commercial [Member]
Ending allowance balances attributable to loans:
Individually evaluated for impairment		241
Collectively evaluated for impairment	1,289	978
Total ending allowance balance	1,289	1,219	933	1,024
Loans:
Loans individually evaluated for impairment	5,922	5,576
Loans collectively evaluated for impairment	117,891	111,902
Total ending loans balance	123,813	117,478
Commercial Real Estate [Member]
Ending allowance balances attributable to loans:
Individually evaluated for impairment	109	331
Collectively evaluated for impairment	1,415	1,541
Total ending allowance balance	1,524	1,872	1,902	1,673
Loans:
Loans individually evaluated for impairment	1,679	3,220
Loans collectively evaluated for impairment	138,016	126,608
Total ending loans balance	139,695	129,828
Residential Real Estate [Member]
Ending allowance balances attributable to loans:
Individually evaluated for impairment	75	212
Collectively evaluated for impairment	964	993
Total ending allowance balance	1,039	1,205	1,096	894
Loans:
Loans individually evaluated for impairment	1,612	1,844
Loans collectively evaluated for impairment	120,072	109,601
Total ending loans balance	121,684	111,445
Construction & Land Development [Member]
Ending allowance balances attributable to loans:
Collectively evaluated for impairment	142	178
Total ending allowance balance	142	178	253	180
Loans:
Loans collectively evaluated for impairment	17,446	13,444
Total ending loans balance	17,446	13,444
Consumer [Member]
Ending allowance balances attributable to loans:
Collectively evaluated for impairment	60	91
Total ending allowance balance	60	91	76	78
Loans:
Loans collectively evaluated for impairment	7,913	6,687
Total ending loans balance	7,913	6,687
Unallocated [Member]
Ending allowance balances attributable to loans:
Collectively evaluated for impairment	327	520
Total ending allowance balance	$ 327	$ 520	$ 320	$ 233

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Employee Benefits - Summary of Stock Options Activity (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding at beginning of year, Shares	30,760	31,760	39,620
Granted, Shares	0	0	0
Exercised, Shares	(2,771)	(574)	(1,261)
Forfeited, Shares			(3,210)
Outstanding at end of year, Shares	11,904	30,760	31,760
Options exercisable at year-end, Shares	11,904	30,760	31,760
Outstanding at beginning of year, Weighted Average Exercise Price	$ 17.90	$ 17.85	$ 17.49
Granted, Weighted Average Exercise Price	$ 0	$ 0	$ 0
Exercised, Weighted Average Exercise Price	$ (17.84)	$ (16.10)	$ (16.05)
Forfeited, Weighted Average Exercise Price			$ (16.06)
Outstanding at end of year, Weighted Average Exercise Price	$ 18.00	$ 17.90	$ 17.85
Options exercisable at year-end, Weighted Average Exercise Price	$ 18.00	$ 17.90	$ 17.85
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, 2014	Dec. 31, 2013	Dec. 31, 2012
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Weighted average common shares	2,980,602	2,980,602	2,980,602
Average treasury shares	(242,966)	(244,129)	(245,713)
Total weighted average common shares outstanding (basic)	2,737,636	2,736,473	2,734,889
Dilutive effect of assumed exercise of stock options	1,442	2,004	252
Weighted average common shares outstanding (diluted)	2,739,078	2,738,477	2,735,141

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Interest-Bearing Deposits (Tables)

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Summary of Interest - Bearing Deposits

Interest-bearing deposits at December 31 are as follows:

(Dollars in thousands)	2014		2013
Demand	$	77,725	$	76,327
Savings		155,336		149,937
Time deposits:
In excess of $250,000		13,191		12,280
Other		114,572		122,064
Total interest-bearing deposits	$	360,824	$	360,608

Stated Maturities of Time Deposits

At December 31, 2014, stated maturities of time deposits were as follows:
(Dollars in thousands)
2015	$	66,964
2016		26,155
2017		14,910
2018		15,323
2019		4,389
2020 and beyond		22
Total	$	127,763

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Employee Benefits - Summary of Options Outstanding (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding options, Number	11,904	30,760	31,760	39,620
Exercisable Options, Weighted Average Exercise Price	$ 18.00	$ 17.90	$ 17.85	$ 17.49
18.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price	$ 18
Outstanding options, Number	11,904
Outstanding options, Weighted Average Remaining Contractual Life	1 year 2 months 23 days
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, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Expense (Benefit), Continuing Operations [Abstract]
Current	$ 2,393	$ 2,196	$ 2,040
Deferred	175	77	(50)
Total income tax provision	$ 2,568	$ 2,273	$ 1,990

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Fair Value Measurements - Additional Information (Detail) (USD $)	Dec. 31, 2014	Dec. 31, 2013
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, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 405,220	$ 374,096
30 - 59 Days Past Due	1,033	865
60 - 89 Days Past Due	349	651
90 Days + Past Due	281	1,036
Nonaccrual	3,668	2,234
Total Past Due and Nonaccrual	5,331	4,786
Total ending loans balance	410,551	378,882
Construction & Land Development [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	17,431	12,494
60 - 89 Days Past Due	15
90 Days + Past Due		950
Total Past Due and Nonaccrual	15	950
Total ending loans balance	17,446	13,444
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	122,283	117,342
30 - 59 Days Past Due	362	15
60 - 89 Days Past Due	96	37
90 Days + Past Due	1
Nonaccrual	1,071	84
Total Past Due and Nonaccrual	1,530	136
Total ending loans balance	123,813	117,478
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	137,683	128,462
30 - 59 Days Past Due	174	111
60 - 89 Days Past Due	104	107
90 Days + Past Due		40
Nonaccrual	1,734	1,108
Total Past Due and Nonaccrual	2,012	1,366
Total ending loans balance	139,695	129,828
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	120,025	109,274
30 - 59 Days Past Due	424	616
60 - 89 Days Past Due	92	467
90 Days + Past Due	280	46
Nonaccrual	863	1,042
Total Past Due and Nonaccrual	1,659	2,171
Total ending loans balance	121,684	111,445
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	7,798	6,524
30 - 59 Days Past Due	73	123
60 - 89 Days Past Due	42	40
Total Past Due and Nonaccrual	115	163
Total ending loans balance	$ 7,913	$ 6,687

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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, 2014	Dec. 31, 2013
Components of Deferred Tax Assets and Liabilities [Abstract]
Allowance for loan losses	$ 1,648	$ 1,887
Net operating loss carryforward	341	470
Capital loss carryforward		35
Unrealized loss on securities available-for-sale	145	750
Other	41	37
Deferred tax assets, Gross	2,175	3,179
Valuation allowance on deferred tax assets		(35)
Deferred tax assets	2,175	3,144
Premises and equipment	(374)	(443)
Federal Home Loan Bank stock dividends	(609)	(736)
Deferred loan fees	(282)	(226)
Prepaid expenses	(159)	(120)
Other	(374)	(462)
Deferred tax liabilities	(1,798)	(1,987)
Net deferred tax asset	$ 377	$ 1,157

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Condensed Parent Company Financial Information - Summary of Condensed Financial Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
ASSETS
Cash deposited with subsidiary bank	$ 15,310	$ 15,777
Securities available-for-sale	100,108	101,722
TOTAL ASSETS	620,981	596,465
LIABILITIES AND SHAREHOLDERS' EQUITY
Total liabilities	563,531	544,054
Total shareholders' equity	57,450	52,411	52,453	49,429
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	620,981	596,465
Parent Company [Member]
ASSETS
Cash deposited with subsidiary bank	699	598
Investment in subsidiary bank	56,424	51,596
Securities available-for-sale	128	128
Other assets	199	192
TOTAL ASSETS	57,450	52,514
LIABILITIES AND SHAREHOLDERS' EQUITY
Total liabilities		103
Total shareholders' equity	57,450	52,411
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 57,450	$ 52,514

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Financial Instruments with Off-Balance Sheet Risk - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2014
Offsetting [Abstract]
Letters of credit expiry year	2015

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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, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income before income taxes									$ 8,452	$ 7,513	$ 6,537
Income tax benefit									2,568	2,273	1,990
NET INCOME	1,439	1,507	1,522	1,416	1,224	1,407	1,247	1,362	5,884	5,240	4,547
COMPREHENSIVE INCOME									7,058	1,920	4,981
Parent Company [Member]
Interest on securities									2	2	2
Dividends from subsidiary									2,400	2,400	2,000
Total income									2,402	2,402	2,002
Operating expenses									312	356	354
Income before income taxes									2,090	2,046	1,648
Income tax benefit									(141)	(121)	(120)
Equity earnings in subsidiary, net of dividends									3,653	3,073	2,779
NET INCOME									5,884	5,240	4,547
COMPREHENSIVE INCOME									$ 7,058	$ 1,920	$ 4,981

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Employee Benefits - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Profit sharing contribution	2.75%	2.75%	2.50%
Company match of participant contributions	50.00%
Maximum annual compensation contribution	2.00%
Expense under plan	$ 269	$ 284	$ 270
Stock options granted	0	0	0
Total intrinsic value of stock options and outstanding	48	34
Total intrinsic value of exercisable stock options	$ 48	$ 34
Stock options vested	0	0	0

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Borrowings - Schedule of Maturities Other Borrowings (Detail) (Other Borrowings [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Other Borrowings [Member]
Debt Instrument [Line Items]
2015	$ 1,488
2016	1,079
2017	10,730
2018	534
2019 and beyond	1,122
Long term Debt, Total	$ 14,953
Weighted Average Interest Rate, 2015	1.71%
Weighted Average Interest Rate, 2016	1.58%
Weighted Average Interest Rate, 2017	3.44%
Weighted Average Interest Rate, 2018	1.16%
Weighted Average Interest Rate, 2019 and beyond	1.16%
Total	2.88%

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Contingent Liabilities

12 Months Ended

Dec. 31, 2014

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, 2014	Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]
Proceeds	$ 2,483	$ 4,309
Realized gains	133	159
Realized losses	0	0
Net securities gains	$ 133	$ 159

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Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

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:

	2014
(Dollars in thousands)	Carrying Value		Level I		Level II		Level III		Total Fair Value
Financial assets:
Cash and cash equivalents	$	43,923	$	43,923	$	–	$	–	$	43,923
Securities available-for-sale		100,108		1,128		98,980		–		100,108
Securities held-to-maturity		38,316		–		38,950		–		38,950
Restricted stock		4,614		4,614		–		–		4,614
Loans held for sale		75		75		–		–		75
Net loans		406,522		–		–		411,168		411,168
Bank-owned life insurance		9,815		9,815		–		–		9,815
Accrued interest receivable		1,329		1,329		–		–		1,329
Mortgage servicing rights		222		–		–		222		222
Financial liabilities:
Deposits	$	500,075	$	372,312	$	–	$	128,445	$	500,757
Short-term borrowings		46,627		46,627		–		–		46,627
Other borrowings		14,953		–		–		15,348		15,348
Accrued interest payable		84		84		–		–		84
	2013
(Dollars in thousands)	Carrying Value		Level I		Level II		Level III		Total Fair 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
Mortgage servicing rights		225		–		–		225		225
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

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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, 2014	Dec. 31, 2013	Dec. 31, 2012
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Expected provision using statutory federal income tax rate	$ 2,874	$ 2,554	$ 2,223
Tax-exempt income on state and municipal securities and political subdivision loans	(188)	(203)	(269)
Interest expense associated with carrying certain state and municipal securities and political subdivision loans	4	6	6
Tax-exempt income on bank owned life insurance	(90)	(86)	(78)
Other	(32)	2	108
Total income tax provision	$ 2,568	$ 2,273	$ 1,990

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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, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Quarterly Financial Information Disclosure [Abstract]
Interest Income	$ 5,401	$ 5,435	$ 5,484	$ 5,336	$ 5,430	$ 5,235	$ 5,173	$ 5,300	$ 21,656	$ 21,138	$ 20,584
Net Interest Income	4,987	4,997	5,045	4,898	4,922	4,677	4,592	4,692	19,927	18,883	17,606
Net Income	$ 1,439	$ 1,507	$ 1,522	$ 1,416	$ 1,224	$ 1,407	$ 1,247	$ 1,362	$ 5,884	$ 5,240	$ 4,547
Basic Earnings Per Share	$ 0.53	$ 0.55	$ 0.55	$ 0.52	$ 0.45	$ 0.51	$ 0.45	$ 0.50	$ 2.15	$ 1.91	$ 1.66
Diluted Earnings Per Share	$ 0.53	$ 0.55	$ 0.55	$ 0.52	$ 0.45	$ 0.51	$ 0.45	$ 0.50	$ 2.15	$ 1.91	$ 1.66

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Financial Instruments with Off-Balance Sheet Risk (Tables)

12 Months Ended

Dec. 31, 2014

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)	2014		2013
Commitments to extend credit	$	126,387	$	119,571
Letters of credit	$	1,778	$	679

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Loans - Summary of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	$ 410,551	$ 378,882
Deferred loan costs	352	243
Total loans	410,903	379,125
Construction & Land Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	17,446	13,444
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	123,813	117,478
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	139,695	129,828
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	121,684	111,445
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	$ 7,913	$ 6,687

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Interest-Bearing Deposits - Summary of Interest - Bearing Deposits (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Time deposits:
Total interest-bearing deposits	$ 360,824	$ 360,608
Interest-bearing Deposits [Member]
Interest Bearing Deposits [Line Items]
Demand	77,725	76,327
Savings	155,336	149,937
Time deposits:
In excess of $250,000	13,191	12,280
Other	114,572	122,064
Total interest-bearing deposits	$ 360,824	$ 360,608

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Premises and Equipment - Components of Premises and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 18,981	$ 18,732
Accumulated depreciation	10,695	10,042
Premises and equipment, net	8,286	8,690
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	9,665	9,656
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	7,567	7,327
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, 2014	Dec. 31, 2013
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	$ 99,160	$ 102,253
Gross Unrealized Gains, Available-for-sale	1,236	1,023
Gross Unrealized Losses, Available-for-sale	288	1,554
Fair Value, Available-for-sale	100,108	101,722
Amortized Cost, Held to maturity	38,316	44,350
Gross Unrealized Gains, Held to maturity	692
Gross Unrealized Losses, Held to maturity	58	1,707
Fair Value, Held to maturity	38,950	42,643
Amortized Cost	142,090	152,066
Gross Unrealized Gains	1,928	1,023
Gross Unrealized Losses	346	3,261
Fair Value	143,672	149,828
U.S. Government Agencies [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	25,228	22,999
Gross Unrealized Gains, Available-for-sale	6	8
Gross Unrealized Losses, Available-for-sale	155	706
Fair Value, Available-for-sale	25,079	22,301
Amortized Cost, Held to maturity	16,343	19,186
Gross Unrealized Gains, Held to maturity	294
Gross Unrealized Losses, Held to maturity	2	828
Fair Value, Held to maturity	16,635	18,358
Mortgage-Backed Securities of Government Agencies [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	47,696	54,455
Gross Unrealized Gains, Available-for-sale	730	536
Gross Unrealized Losses, Available-for-sale	79	691
Fair Value, Available-for-sale	48,347	54,300
Amortized Cost, Held to maturity	21,973	25,164
Gross Unrealized Gains, Held to maturity	398
Gross Unrealized Losses, Held to maturity	56	879
Fair Value, Held to maturity	22,315	24,285
U.S. Treasury Security [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	1,004	1,005
Gross Unrealized Losses, Available-for-sale	4	8
Fair Value, Available-for-sale	1,000	997
Other Mortgage-Backed Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	139	230
Gross Unrealized Gains, Available-for-sale	2	5
Fair Value, Available-for-sale	141	235
Asset-Backed Securities of Government Agencies [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	2,606	2,739
Gross Unrealized Gains, Available-for-sale	3	36
Gross Unrealized Losses, Available-for-sale	5
Fair Value, Available-for-sale	2,604	2,775
State and Political Subdivisions [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	17,878	16,219
Gross Unrealized Gains, Available-for-sale	433	371
Gross Unrealized Losses, Available-for-sale	44	143
Fair Value, Available-for-sale	18,267	16,447
Corporate Bonds [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	4,503	4,500
Gross Unrealized Gains, Available-for-sale	40	44
Gross Unrealized Losses, Available-for-sale	1	5
Fair Value, Available-for-sale	4,542	4,539
Equity Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	106	106
Gross Unrealized Gains, Available-for-sale	22	23
Gross Unrealized Losses, Available-for-sale		1
Fair Value, Available-for-sale	128	128
Restricted Stock [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost	4,614	5,463
Fair Value	$ 4,614	$ 5,463

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013.

SECURITIES

At the time of purchase all securities are evaluated and designated as available-for-sale or held-to-maturity. 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 of U.S. Government agencies and mortgage-backed securities of government agencies were transferred from available-for-sale to held-to-maturity. At December 31, 2014, 27% 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 it would if the entire portfolio was included in the available-for sale category. 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 noninterest 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 2014 and 2013, 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, 2014 or 2013.

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, construction loans and troubled debt restructurings 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 noninterest expenses, as are gains or losses upon sale and expenses related to maintenance of the properties. There was no other real estate owned at December 31, 2014 and 2013.

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. Leasehold improvements are amortized over the useful life of the asset.

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 2014 or 2013.

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 2014, 2013 and 2012 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 carry forwards. 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. As of December 31, 2014, there was no unrecognized compensation cost related to unvested share-based compensation awards outstanding. All shares are vested. The Company recorded no stock-based compensation expense for 2014, 2013 or 2012.

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, 2014 and 2013.

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:

	2014			2013			2012
Weighted average common shares		2,980,602			2,980,602			2,980,602
Average treasury shares		(242,966	)		(244,129	)		(245,713	)
Total weighted average common shares outstanding (basic)		2,737,636			2,736,473			2,734,889
Dilutive effect of assumed exercise of stock options		1,442			2,004			252
Weighted average common shares outstanding (diluted)		2,739,078			2,738,477			2,735,141

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, 2014. Options to purchase an aggregate of 11,904 and 30,760 common shares were outstanding at December 31, 2014 and 2013.

ACCOUNTING DEVELOPMENTS

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. This Update is not expected to have a significant impact on the Company’s financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting Update.

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. This Update is not expected to have a significant impact on the Company’s financial statements.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. 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. This Update is not expected to have a significant impact on the Company’s financial statements.

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards. This Update eliminates from GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This Update is not expected to have a significant impact on the Company’s financial statements.

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 Equipment - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Abstract]
Rental Expenses	$ 299	$ 299	$ 298
Depreciation	$ 653	$ 625	$ 567

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Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013.

(Dollars in thousands)	Pretax			Tax Effect			After-tax			Affected Line Item in the Consolidated Statements of Income
Balance as of December 31, 2013		$  (2,207)			$    751			$  (1,456)
Unrealized holding gain on available-for-sale securities arising during the period		1,612			(549	)		1,063
Amount reclassified for net gains included in net income		(133	)		45			(88	)	(a) (b)
Amortization of held-to-maturity discount resulting from transfer		301			(102	)		199
Total other comprehensive loss		1,780			(606	)		1,174
BALANCE AS OF   DECEMBER 31, 2014		$     (427)			$    145			$    (282)
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)

(a) Securities gain, net.

(b) Federal income tax provision.

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Securities (Tables)

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Summary of Securities Available-for-Sale and Restricted Stock

Securities consist of the following at December 31:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
2014
Available-for-sale:
U.S. Treasury security	$	1,004	$	–	$	4	$	1,000
U.S. Government agencies		25,228		6		155		25,079
Mortgage-backed securities of government agencies		47,696		730		79		48,347
Other mortgage-backed securities		139		2		–		141
Asset-backed securities of government agencies		2,606		3		5		2,604
State and political subdivisions		17,878		433		44		18,267
Corporate bonds		4,503		40		1		4,542
Equity securities		106		22		–		128
Total available-for-sale		99,160		1,236		288		100,108
Held-to-maturity securities
U.S. Government agencies		16,343		294		2		16,635
Mortgage-backed securities of government agencies		21,973		398		56		22,315
Total held-to-maturity		38,316		692		58		38,950
Restricted stock		4,614		–		–		4,614
Total securities	$	142,090	$	1,928	$	346	$	143,672
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

Summary of Amortized Cost and Fair Value of Debt Securities

The amortized cost and fair value of debt securities at December 31, 2014, 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.

	Amortized		Fair
(Dollars in thousands)	Cost		Value
Available-for-sale:
Due in one year or less	$	4,649	$	4,684
Due after one through five years		20,221		20,332
Due after five through ten years		23,289		23,427
Due after ten years		50,895		51,537
Total debt securities available-for-sale	$	99,054	$	99,980
Held-to-maturity:
Due in one year or less	$	–	$	–
Due after one through five years		–		–
Due after five through ten years		8,692		8,830
Due after ten years		29,624		30,120
Total debt securities held-to-maturity	$	38,316	$	38,950

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 2014 and 2013. There were no securities sold during 2012.

(Dollars in thousands)	2014		2013
Proceeds	$	2,483	$	4,309
Realized gains	$	133	$	159
Realized losses		–		–
Net securities gains	$	133	$	159

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
	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
(Dollars in thousands)	Losses		Value		Losses		Value		Losses		Value
2014
Available-for-sale
U.S. Treasury security	$	4	$	1,000	$	–	$	–	$	4	$	1,000
U.S. Government agencies		12		5,188		143		5,856		155		11,044
Mortgage-backed securities of government agencies		40		6,348		39		4,939		79		11,287
Asset-backed securities of government agencies		5		1,603		–		–		5		1,603
State and political subdivisions		13		1,300		31		1,416		44		2,716
Corporate bonds		1		499		–		–		1		499
Held-to-maturity
U.S. Government agencies		2		998		–		–		2		998
Mortgage-backed securities of government agencies		–		–		56		9,265		56		9,265
Total temporarily impaired securities	$	77	$	16,936	$	269	$	21,476	$	346	$	38,412
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

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

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:

	2014			2013			2012
Weighted average common shares		2,980,602			2,980,602			2,980,602
Average treasury shares		(242,966	)		(244,129	)		(245,713	)
Total weighted average common shares outstanding (basic)		2,737,636			2,736,473			2,734,889
Dilutive effect of assumed exercise of stock options		1,442			2,004			252
Weighted average common shares outstanding (diluted)		2,739,078			2,738,477			2,735,141

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Loans - Schedule of Impairment by Class of Loans (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	$ 10,568	$ 11,136	$ 10,617
Recorded Investment With No Allowance	7,724	907	1,975
Recorded Investment With Allowance	1,495	9,748	8,235
Total Recorded Investment	9,219	10,655	10,210
Related Allowance	184	784	779
Average Recorded Investment	11,258	9,171	9,456
Interest Income Recognized	359	388	337
Construction & Land Development [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance			173
Recorded Investment With No Allowance			166
Total Recorded Investment			166
Average Recorded Investment		21	167
Interest Income Recognized		2
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	7,011	5,595	4,315
Recorded Investment With No Allowance	5,889	7
Recorded Investment With Allowance	37	5,580	4,329
Total Recorded Investment	5,926	5,587	4,329
Related Allowance		241	85
Average Recorded Investment	6,739	4,185	4,123
Interest Income Recognized	208	182	167
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	1,836	3,540	4,906
Recorded Investment With No Allowance	950	563	1,723
Recorded Investment With Allowance	728	2,658	2,849
Total Recorded Investment	1,678	3,221	4,572
Related Allowance	109	331	522
Average Recorded Investment	2,723	3,650	4,396
Interest Income Recognized	90	163	152
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	1,721	2,001	1,223
Recorded Investment With No Allowance	885	337	86
Recorded Investment With Allowance	730	1,510	1,057
Total Recorded Investment	1,615	1,847	1,143
Related Allowance	75	212	172
Average Recorded Investment	1,796	1,315	770
Interest Income Recognized	$ 61	$ 41	$ 18

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Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2014

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
2014								`
First quarter		$  5,336		$  4,898		$  1,416		$  0.52		$  0.52
Second quarter		5,484		5,045		1,522		0.55		0.55
Third quarter		5,435		4,997		1,507		0.55		0.55
Fourth quarter		5,401		4,987		1,439		0.53		0.53
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

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Loans (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Summary of Loans

Loans consist of the following at December 31:

(Dollars in thousands)	2014		2013
Commercial	$	123,813	$	117,478
Commercial real estate		139,695		129,828
Residential real estate		121,684		111,445
Construction & land development		17,446		13,444
Consumer		7,913		6,687
Total loans before deferred costs		410,551		378,882
Deferred loan costs		352		243
Total loans	$	410,903	$	379,125

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, 2014, 2013 and 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. During 2014, the increase in the provision for possible loan losses related to commercial loans was primarily due to the increase in the historical loss rate of loans in this category. The increase in the provision related to commercial real estate loans was affected by an increase in loan balances, offset by a decrease in impaired loans. The decrease in the provision related to residential real estate loans was affected by the decrease in the specific allocation amounts related to impaired residential real estate loans, as well as a decrease in the historical loss rates of the loans in this category. The decrease in the provision related to construction and consumer loans was due to the decrease in the historical loss rates in both of these categories.

										Construction
				Commercial			Residential			& Land
(Dollars in thousands)	Commercial			Real Estate			Real Estate			Development			Consumer			Unallocated			Total
December 31, 2014
Beginning balance	$	1,219		$	1,872		$	1,205		$	178		$	91		$	520		$	5,085
Provision for loan losses		1,047			23			(164	)		(36	)		(34	)		(193	)		643
Charge-offs		(1,005	)		(379	)		(27	)		–			(11	)					(1,422	)
Recoveries		28			8			25			–			14						75
Net charge-offs		(977	)		(371	)		(2	)		–			3						(1,347	)
Ending balance	$	1,289		$	1,524		$	1,039		$	142		$	60		$	327		$	4,381
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

Allowances for Loan Losses and Ending Balances by Portfolio Segment and 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:

							Construction
			Commercial		Residential		& Land
(Dollars in thousands)	Commercial		Real Estate		Real Estate		Development		Consumer		Unallocated		Total
2014
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$	–	$	109	$	75	$	–	$	–	$	–	$	184
Collectively evaluated for impairment		1,289		1,415		964		142		60		327		4,197
Total ending allowance balance	$	1,289	$	1,524	$	1,039	$	142	$	60	$	327	$	4,381
Loans:
Loans individually evaluated for impairment	$	5,922	$	1,679	$	1,612	$	–	$	–			$	9,213
Loans collectively evaluated for impairment		117,891		138,016		120,072		17,446		7,913				401,338
Total ending loans balance	$	123,813	$	139,695	$	121,684	$	17,446	$	7,913			$	410,551
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

Schedule of Impairment by Class of Loans

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

			Recorded
	Unpaid		Investment		Recorded		Total				Average		Interest
	Principal		With No		Investment		Recorded		Related		Recorded		Income
(Dollars in thousands)	Balance		Allowance		With Allowance		Investment		Allowance		Investment		Recognized
2014
Commercial	$	7,011	$	5,889	$	37	$	5,926	$	–	$	6,739	$	208
Commercial real estate		1,836		950		728		1,678		109		2,723		90
Residential real estate		1,721		885		730		1,615		75		1,796		61
Construction & land development		–		–		–		–		–		–		–
Total impaired loans	$	10,568	$	7,724	$	1,495	$	9,219	$	184	$	11,258	$	359
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

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:

											Total Past
			30-59 Days		60-89 Days		90 Days +				Due and		Total
(Dollars in thousands)	Current		Past Due		Past Due		Past Due		Nonaccrual		Nonaccrual		Loans
2014
Commercial	$	122,283	$	362	$	96	$	1	$	1,071	$	1,530	$	123,813
Commercial real estate		137,683		174		104		–		1,734		2,012		139,695
Residential real estate		120,025		424		92		280		863		1,659		121,684
Construction & land development		17,431		–		15		–		–		15		17,446
Consumer		7,798		73		42		–		–		115		7,913
Total loans	$	405,220	$	1,033	$	349	$	281	$	3,668	$	5,331	$	410,551
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

Summary of Troubled Debt Restructurings

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

	Number Of		Pre-Modification		Post-Modification
(Dollars in thousands)	Loans Restructured		Recorded Investment		Recorded Investment
2014
Residential real estate		1	$	84	$	84
Total restructured loans		1	$	84	$	84
2013
Commercial real estate		3	$	83	$	83
Residential real estate		3		264		264
Total restructured loans		6	$	347	$	347

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:

			Special						Not
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Rated		Total
2014
Commercial	$	112,467	$	3,809	$	6,690	$	–	$	847	$	123,813
Commercial real estate		129,792		4,898		3,634		–		1,371		139,695
Residential real estate		209		–		39		–		121,436		121,684
Construction & land development		13,889		1,579		–		–		1,978		17,446
Consumer		–		–		–		–		7,913		7,913
Total	$	256,357	$	10,286	$	10,363	$	–	$	133,545	$	410,551
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

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
2014
Commercial	$	847	$	–	$	847
Commercial real estate		1,371		–		1,371
Residential real estate		120,332		1,104		121,436
Construction & land development		1,978		–		1,978
Consumer		7,913		–		7,913
Total	$	132,441	$	1,104	$	133,545
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

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Components of Premises and Equipment

Premises and equipment consist of the following at December 31:

(Dollars in thousands)	2014		2013
Land and improvements	$	1,489	$	1,489
Buildings and improvements		9,665		9,656
Furniture and equipment		7,567		7,327
Leasehold improvements		260		260
		18,981		18,732
Accumulated depreciation		10,695		10,042
Premises and equipment, net	$	8,286	$	8,690

Summary of Future Minimum Lease Payments

Future minimum lease payments at December 31, 2014 were as follows:

(Dollars in thousands)
2015	$	294
2016		172
2017		32
Total	$	498

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 5,884	$ 5,240	$ 4,547
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises, equipment and software	928	779	644
Deferred income taxes	175	77	(50)
Provision for loan losses	643	840	823
Gain on sale of loans, net	(198)	(347)	(591)
Securities gain, net	(133)	(159)
Security amortization, net of accretion	361	456	553
Secondary market loan sale proceeds	6,506	12,393	20,873
Originations of secondary market loans held-for-sale	(6,383)	(12,106)	(20,384)
Bank-owned life insurance	(264)	(253)	(230)
Effects of changes in operating assets and liabilities:
Net deferred loan (fees) costs	(81)	(214)	63
Accrued interest receivable	45	(57)	32
Accrued interest payable	(12)	(39)	(47)
Other assets and liabilities	(308)	339	831
Net cash provided by operating activities	7,163	6,949	7,064
Securities:
Proceeds from repayments, available-for-sale	35,337	36,200	76,220
Proceeds from repayments, held-to-maturity	9,273	1,211
Purchases, available-for-sale	(34,893)	(55,693)	(82,382)
Purchases, held-to-maturity	(3,000)	(8,135)
Proceeds from sale of securities, available-for-sale	2,483	4,309
Proceeds from redemption of restricted stock	849
Loan originations, net of repayments	(33,043)	(14,666)	(40,842)
Proceeds from sale of other real estate		18	26
Property, equipment and software acquisitions	(427)	(1,526)	(953)
Purchase of bank-owned life insurance		(1,000)	(5,000)
Net cash used in investing activities	(23,421)	(39,282)	(52,931)
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits	19,151	5,550	32,021
Net change in short-term borrowings	(2,044)	4,679	6,919
Proceeds from other borrowings	5,000
Repayment of other borrowings	(2,506)	(213)	(6,489)
Cash dividends paid	(2,026)	(1,970)	(1,969)
Proceeds from stock options exercised	7	8	5
Net cash provided by (used in) financing activities	17,582	8,054	30,487
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,324	(24,279)	(15,380)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	42,599	66,878	82,258
CASH AND CASH EQUIVALENTS AT END OF YEAR	43,923	42,599	66,878
Cash paid during the year for:
Interest	1,750	2,356	3,155
Income taxes	2,500	2,335	1,690
Noncash investing activities:
Transfer of loans to other real estate owned			56
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, 2014

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)	2014			2013			2012
Gross carrying amount	$	1,251		$	1,251		$	1,251
Accumulated amortization		(622	)		(492	)		(357	)
Net carrying amount	$	629		$	759		$	894

Future Amortization Expense for Core Deposit Asset

The estimated aggregate future amortization expense for the core deposit assets remaining as of December 31, 2014 is as follows:

	Core Deposit
(Dollars in thousands)	Amortization
2015	$	125
2016		121
2017		116
2018		101
2019		63
Thereafter		103
	$	629

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Related-Party Transactions - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Related Party Transactions [Abstract]
Deposits from executive officers, directors and their related business interests	$ 10.4	$ 10.4

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Condensed Parent Company Financial Information (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013 and for each of the three years in the period ended December 31, 2014 follows:

(Dollars in thousands)	2014		2013
CONDENSED BALANCE SHEETS
ASSETS
Cash deposited with subsidiary bank	$	699	$	598
Investment in subsidiary bank		56,424		51,596
Securities available-for-sale		128		128
Other assets		199		192
TOTAL ASSETS	$	57,450	$	52,514
LIABILITIES AND SHAREHOLDERS’ EQUITY
Total liabilities	$	–	$	103
Total shareholders’ equity		57,450		52,411
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	57,450	$	52,514

Summary Condensed Statements of Income

(Dollars in thousands)	2014			2013			2012
CONDENSED STATEMENTS OF INCOME
Interest on securities	$	2		$	2		$	2
Dividends from subsidiary		2,400			2,400			2,000
Total income		2,402			2,402			2,002
Operating expenses		312			356			354
Income before taxes and undistributed equity income of subsidiary		2,090			2,046			1,648
Income tax benefit		(141	)		(121	)		(120	)
Equity earnings in subsidiary, net of dividends		3,653			3,073			2,779
NET INCOME	$	5,884		$	5,240		$	4,547
COMPREHENSIVE INCOME	$	7,058		$	1,920		$	4,981

Condensed Statements of Cash Flows

(Dollars in thousands)	2014			2013			2012
CONDENSED STATEMENTS OF CASH FLOWS
Cash flows from operating activities:
Net income	$	5,884		$	5,240		$	4,547
Adjustments to reconcile net income to cash provided by operations:
Equity earnings in subsidiary, net of dividends		(3,653	)		(3,073	)		(2,779	)
Change in other assets, liabilities		(111	)		42			49
Net cash provided by operating activities		2,120			2,209			1,817
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		(2,026	)		(1,970	)		(1,969	)
Cash received from exercise of stock options		7			8			5
Net cash used in financing activities		(2,019	)		(1,962	)		(1,964	)
Increase (decrease) in cash		101			210			(147	)
Cash at beginning of year		598			388			535
Cash at end of year	$	699		$	598		$	388

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Loans - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014 County SecurityLoan	Dec. 31, 2013 SecurityLoan	Dec. 31, 2012
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%	77.00%
Concentrations of loans related to a single industry	$ 0	$ 0
Number of Counties	4
Loans classified as troubled debt restructurings	6,800,000	8,600,000
Reserves allocated to customers whose loan terms are modified in troubled debt restructurings	88,000	583,000
Loans payable in nonaccrual of interest status	518,000
Loans restructured, subsequently defaulted		0	0
Number of loans restructured, subsequently defaulted	0	0
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
Non-performing loans past due days and greater	90 days
Loans serviced for others	70,600,000	70,200,000
Performing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans classified as troubled debt restructurings	6,300,000
Mortgage Servicing Rights [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage servicing rights	222,000	225,000
Valuation allowance	0	0
Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential Mortgage Loans with servicing retained	$ 55,500,000	$ 56,900,000

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Borrowings - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
Debt Instrument [Line Items]
Additional borrowing capacity	$ 46.1
Minimum [Member]
Debt Instrument [Line Items]
Principal curtailment is due on borrowings	10.00%
Maximum [Member]
Debt Instrument [Line Items]
Principal curtailment is due on borrowings	20.00%

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Cash and cash equivalents
Cash and due from banks	$ 15,310	$ 15,777
Interest-earning deposits in other banks	28,613	26,822
Total cash and cash equivalents	43,923	42,599
Securities
Available-for-sale, at fair value	100,108	101,722
Held-to-maturity; fair value of $38,950 in 2014 and $42,643 in 2013	38,316	44,350
Restricted stock, at cost	4,614	5,463
Total securities	143,038	151,535
Loans held for sale	75
Loans	410,903	379,125
Less allowance for loan losses	4,381	5,085
Net loans	406,522	374,040
Premises and equipment, net	8,286	8,690
Core deposit intangible	629	759
Goodwill	4,728	4,728
Bank-owned life insurance	9,815	9,551
Accrued interest receivable and other assets	3,965	4,563
TOTAL ASSETS	620,981	596,465
Deposits
Noninterest-bearing	139,251	120,325
Interest-bearing	360,824	360,608
Total deposits	500,075	480,933
Short-term borrowings	46,627	48,671
Other borrowings	14,953	12,459
Accrued interest payable and other liabilities	1,876	1,991
Total liabilities	563,531	544,054
SHAREHOLDERS' EQUITY
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares; outstanding 2,739,405 shares in 2014 and 2,736,634 in 2013	18,629	18,629
Additional paid-in capital	9,884	9,964
Retained earnings	34,090	30,232
Treasury stock at cost - 241,197 shares in 2014 and 243,968 in 2013	(4,871)	(4,958)
Accumulated other comprehensive loss	(282)	(1,456)
Total shareholders' equity	57,450	52,411
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 620,981	$ 596,465

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014 Segment BankingCenters	Dec. 31, 2013	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
Securities transferred from available-for-sale to held-to-maturity	99,980,000
Investment in FHLB, impairment charges	0	0
Loan held for sale maximum period	3 days
Amount of other real state owned	0	0
Impairment on goodwill	0	0
Advertising expenses	175,000	190,000	175,000
Stock-based compensation expenses	0	0	0
Unrecognized compensation cost related to unvested share-based compensation awards outstanding	0
Stock option granted	0	0	0
Antidilutive stock options	0
Options outstanding	11,904	30,760	31,760	39,620
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	27.00%
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

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Contingent Liabilities - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Period of termination	2 years

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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]
Balance at beginning of period 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 (loss)	434					434
Stock options exercised	12		(20)	(7)	39
Cash dividends declared	(1,969)			(1,969)
Balance at end of period 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 (loss)	(3,320)					(3,320)
Stock options exercised	8		(10)		18
Cash dividends declared	(1,970)			(1,970)
Balance at end of period at Dec. 31, 2013	52,411	18,629	9,964	30,232	(4,958)	(1,456)
Net Income	5,884			5,884
Other comprehensive income (loss)	1,174					1,174
Stock options exercised	7		(80)		87
Cash dividends declared	(2,026)			(2,026)
Balance at end of period at Dec. 31, 2014	$ 57,450	$ 18,629	$ 9,884	$ 34,090	$ (4,871)	$ (282)

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Fair Values of Financial Instruments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Fair Value Disclosures [Abstract]
Commitments to extend credit and letters of credit	$ 128.2	$ 120.3

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Loans - Summary of Loans by Credit Quality Indicator (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 410,551	$ 378,882
Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	17,446	13,444
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	123,813	117,478
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	139,695	129,828
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	121,684	111,445
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	7,913	6,687
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	256,357	226,167
Pass [Member] | Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	13,889	9,470
Pass [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	112,467	101,195
Pass [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	129,792	115,265
Pass [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	209	237
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	10,286	20,015
Special Mention [Member] | Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,579	587
Special Mention [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	3,809	10,352
Special Mention [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	4,898	9,076
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	10,363	11,038
Substandard [Member] | Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans		1,884
Substandard [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	6,690	5,066
Substandard [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	3,634	4,041
Substandard [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	39	47
Not Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	133,545	121,662
Not Rated [Member] | Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,978	1,503
Not Rated [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	847	865
Not Rated [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,371	1,446
Not Rated [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	121,436	111,161
Not Rated [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 7,913	$ 6,687

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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)	2014		2013		2012
Current	$	2,393	$	2,196	$	2,040
Deferred		175		77		(50	)
Total income tax provision	$	2,568	$	2,273	$	1,990

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)	2014			2013			2012
Expected provision using statutory federal income tax rate	$	2,874		$	2,554		$	2,223
Tax-exempt income on state and municipal securities and political subdivision loans		(188	)		(203	)		(269	)
Interest expense associated with carrying certain state and municipal securities and political subdivision loans		4			6			6
Tax-exempt income on bank owned life insurance		(90	)		(86	)		(78	)
Other		(32	)		2			108
Total income tax provision	$	2,568		$	2,273		$	1,990

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)	2014			2013
Allowance for loan losses	$	1,648		$	1,887
Net operating loss carryforward		341			470
Capital loss carryforward		–			35
Unrealized loss on securities available-for-sale		145			750
Other		41			37
		2,175			3,179
Valuation allowance on deferred tax assets		–			(35	)
Deferred tax assets		2,175			3,144
Premises and equipment		(374	)		(443	)
Federal Home Loan Bank stock dividends		(609	)		(736	)
Deferred loan fees		(282	)		(226	)
Prepaid expenses		(159	)		(120	)
Other		(374	)		(462	)
Deferred tax liabilities		(1,798	)		(1,987	)
Net deferred tax asset	$	377		$	1,157

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Core Deposit Intangible Assets - Core Deposit Intangible and Related Accumulated Amortization (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Goodwill And Core Deposit Intangibles [Line Items]
Net carrying amount	$ 629
Core Deposits [Member]
Goodwill And Core Deposit Intangibles [Line Items]
Gross carrying amount	1,251	1,251	1,251
Accumulated amortization	(622)	(492)	(357)
Net carrying amount	$ 629	$ 759	$ 894

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Fair Value Measurements

12 Months Ended

Dec. 31, 2014

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, 2014 and December 31, 2013, 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
Assets:				December 31, 2014
Securities available-for-sale
U.S. Treasury security	$	1,000	$	–	$	–	$	1,000
U.S. Government agencies		–		25,079		–		25,079
Mortgage-backed securities of government agencies		–		48,347		–		48,347
Other mortgage-backed securities		–		141		–		141
Asset-backed securities of government agencies		–		2,604		–		2,604
State and political subdivisions		–		18,267		–		18,267
Corporate bonds		–		4,542		–		4,542
Total debt securities		1,000		98,980		–		99,980
Equity securities		128		–		–		128
Total available-for-sale securities	$	1,128	$	98,980	$	–	$	100,108
Assets:				December 31, 2013
Securities available-for-sale
U.S. Treasury security	$	997	$	–	$	–	$	997
U.S. Government agencies		–		22,301		–		22,301
Mortgage-backed securities of government agencies		–		54,300		–		54,300
Other mortgage-backed securities		–		235		–		235
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

The following table presents the assets measured on a nonrecurring basis on the consolidated balance sheets at their fair value as of December 31, 2014 and December 31, 2013, 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.

(Dollars in thousands)	Level I			Level II		Level III		Total
Assets measured on a nonrecurring basis:			December 31, 2014
Impaired loans	$	–		$	–	$	9,029	$	9,029
Assets measured on a nonrecurring basis:			December 31, 2013
Impaired loans	$	–		$	–	$	9,856	$	9,856

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
	Fair Value		Valuation	Unobservable	Range
(Dollars in thousands)	Estimate		Techniques	Input	(Weighted Average)
				December 31, 2014
			Discounted	Remaining term	2 mos to 28 yrs / (62 mos)
Impaired loans	$	6,539	cash flow	Discount rate	3.1% to 8.3% / (4.6%)
			Appraisal of	Appraisal adjustments2	–20% to –25% (–24%)
		2,490	collateral1,3	Liquidation expense2	–10%
				December 31, 2013
			Discounted	Remaining term	3 mos to 29 yrs / (62 mos)
Impaired loans	$	8,663	cash flow	Discount rate	7.1% to 12% / (7.5%)
			Appraisal of	Appraisal adjustments2	–20% to –25% (–24%)
		1,193	collateral1,3	Liquidation expense2	–10%

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

²Appraisals 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.

³Includes qualitative adjustments by management and estimated liquidation expenses.

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Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2014

Postemployment Benefits [Abstract]

Summary of Stock Options Activity

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

	2014						2013						2012
				Weighted						Weighted						Weighted
				Average						Average						Average
				Exercise						Exercise						Exercise
	Shares			Price			Shares			Price			Shares			Price
Outstanding at beginning of year		30,760		$	17.90			31,760		$	17.85			39,620		$	17.49
Granted		–			–			–			–			–			–
Exercised		(18,856	)		(17.84	)		(1,000	)		(16.10	)		(4,650	)		(16.05	)
Forfeited		–						–						(3,210	)		(16.06	)
Outstanding at end of year		11,904			18.00			30,760			17.90			31,760			17.85
Options exercisable at year-end		11,904		$	18.00			30,760		$	17.90			31,760		$	17.85
Weighted-average fair value of options granted during year					N/A						N/A						N/A

Summary of Options Outstanding

Options outstanding at December 31, 2014 were as follows:

			Outstanding
			Weighted
			Average				Weighted
			Remaining				Average
Exercise			Contractual				Exercise
Price	Number		Life (Years)		Number		Price
$ 18.00		11,904		1.23		11,904	$	18.00

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Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013.

(Dollars in thousands)	Pretax			Tax Effect			After-tax			Affected Line Item in the Consolidated Statements of Income
Balance as of December 31, 2013		$  (2,207)			$    751			$  (1,456)
Unrealized holding gain on available-for-sale securities arising during the period		1,612			(549	)		1,063
Amount reclassified for net gains included in net income		(133	)		45			(88	)	(a) (b)
Amortization of held-to-maturity discount resulting from transfer		301			(102	)		199
Total other comprehensive loss		1,780			(606	)		1,174
BALANCE AS OF   DECEMBER 31, 2014		$     (427)			$    145			$    (282)
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)

(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, 2014
Banking and Thrift [Abstract]
2015	$ 66,964
2016	26,155
2017	14,910
2018	15,323
2019	4,389
2020 and beyond	22
Total	$ 127,763

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Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Stockholders' Equity [Abstract]
Stock Options exercised, shares	2,771	574	1,261
Cash dividends declared per share	$ 0.74	$ 0.72	$ 0.72

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Held-to-maturity, fair value	$ 38,950	$ 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	2,739,405	2,736,634
Treasury stock, at cost	241,197	243,968

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Employee Benefits

12 Months Ended

Dec. 31, 2014

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 2014 and 2013, and 2.5% of each eligible participant’s compensation for 2012, 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 $269 thousand, $284 thousand and $270 thousand for 2014, 2013 and 2012, 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:

	2014						2013						2012
				Weighted						Weighted						Weighted
				Average						Average						Average
				Exercise						Exercise						Exercise
	Shares			Price			Shares			Price			Shares			Price
Outstanding at beginning of year		30,760		$	17.90			31,760		$	17.85			39,620		$	17.49
Granted		–			–			–			–			–			–
Exercised		(18,856	)		(17.84	)		(1,000	)		(16.10	)		(4,650	)		(16.05	)
Forfeited		–						–						(3,210	)		(16.06	)
Outstanding at end of year		11,904			18.00			30,760			17.90			31,760			17.85
Options exercisable at year-end		11,904		$	18.00			30,760		$	17.90			31,760		$	17.85
Weighted-average fair value of options granted during year					N/A						N/A						N/A

Options outstanding at December 31, 2014 were as follows:

			Outstanding
			Weighted
			Average				Weighted
			Remaining				Average
Exercise			Contractual				Exercise
Price	Number		Life (Years)		Number		Price
$ 18.00		11,904		1.23		11,904	$	18.00

The total intrinsic value of outstanding in-the-money stock options and outstanding in-the-money exercisable stock options was $48 thousand and $34 thousand at December 31, 2014 and 2013, respectively. There were no share awards vested in 2014, 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, 2014	Dec. 31, 2013
Financial assets:
Securities available for sale	$ 100,108	$ 101,722
Securities held-to-maturity	38,950	42,643
Bank-owned life insurance	9,815	9,551
Mortgage Servicing Rights [Member]
Financial assets:
Mortgage servicing rights	222	225
Carrying Value [Member]
Financial assets:
Cash and cash equivalents	43,923	42,599
Securities available for sale	100,108	101,722
Securities held-to-maturity	38,316	44,350
Restricted stock	4,614	5,463
Loans held for sale	75
Net loans	406,522	374,040
Bank-owned life insurance	9,815	9,551
Accrued interest receivable	1,329	1,374
Financial liabilities:
Deposits	500,075	480,933
Short-term borrowings	46,627	48,671
Other borrowings	14,953	12,459
Accrued interest payable	84	96
Carrying Value [Member] | Mortgage Servicing Rights [Member]
Financial assets:
Mortgage servicing rights	222	225
Fair Value [Member]
Financial assets:
Cash and cash equivalents	43,923	42,599
Securities available for sale	100,108	101,722
Securities held-to-maturity	38,950	42,643
Restricted stock	4,614	5,463
Loans held for sale	75
Net loans	411,168	375,055
Bank-owned life insurance	9,815	9,551
Accrued interest receivable	1,329	1,374
Financial liabilities:
Deposits	500,757	481,695
Short-term borrowings	46,627	48,671
Other borrowings	15,348	12,559
Accrued interest payable	84	96
Fair Value [Member] | Mortgage Servicing Rights [Member]
Financial assets:
Mortgage servicing rights	222	225
Fair Value [Member] | Level I [Member]
Financial assets:
Cash and cash equivalents	43,923	42,599
Securities available for sale	1,128	1,125
Restricted stock	4,614	5,463
Loans held for sale	75
Bank-owned life insurance	9,815	9,551
Accrued interest receivable	1,329	1,374
Financial liabilities:
Deposits	372,312	346,589
Short-term borrowings	46,627	48,671
Accrued interest payable	84	96
Fair Value [Member] | Level II [Member]
Financial assets:
Securities available for sale	98,980	100,597
Securities held-to-maturity	38,950	42,643
Fair Value [Member] | Level III [Member]
Financial assets:
Net loans	411,168	375,055
Financial liabilities:
Deposits	128,445	135,106
Other borrowings	15,348	12,559
Fair Value [Member] | Level III [Member] | Mortgage Servicing Rights [Member]
Financial assets:
Mortgage servicing rights	$ 222	$ 225

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Fair Value Measurements - Schedule of Fair Value of Assets Measured on Nonrecurring Basis (Detail) (Fair Value, Measurements, Nonrecurring [Member], Impaired Loans [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 9,029	$ 9,856
Level III [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 9,029	$ 9,856

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Document and Entity Information (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Mar. 23, 2015	Jun. 30, 2014
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Trading Symbol	CSBB
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		2,739,405
Entity Public Float			$ 49.6

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Financial Instruments with Off-Balance Sheet Risk

12 Months Ended

Dec. 31, 2014

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)	2014		2013
Commitments to extend credit	$	126,387	$	119,571
Letters of credit	$	1,778	$	679

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, 2014 are due on demand or expire in 2015. 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, 2014	Dec. 31, 2013
Off Balance Sheet Financing [Line Items]
Fair value of financial instruments	$ 1,778	$ 679
Commitments to Extend Credit [Member]
Off Balance Sheet Financing [Line Items]
Fair value of financial instruments	$ 126,387	$ 119,571

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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, 2014	Dec. 31, 2013
Total Securities Available-for-sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 100,108	$ 101,722
U.S. Treasury Security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1,000	997
U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	25,079	22,301
Mortgage-Backed Securities of Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	48,347	54,300
Other Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	141	235
Asset-Backed Securities of Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	2,604	2,775
State and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	18,267	16,447
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	4,542	4,539
Total debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	99,980	101,594
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	128	128
Level I [Member] | Total Securities Available-for-sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1,128	1,125
Level I [Member] | U.S. Treasury Security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1,000	997
Level I [Member] | Total debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1,000	997
Level I [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	128	128
Level II [Member] | Total Securities Available-for-sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	98,980	100,597
Level II [Member] | U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	25,079	22,301
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	48,347	54,300
Level II [Member] | Other Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	141	235
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	2,604	2,775
Level II [Member] | State and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	18,267	16,447
Level II [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	4,542	4,539
Level II [Member] | Total debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 98,980	$ 100,597

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
INTEREST AND DIVIDEND INCOME
Loans, including fees	$ 18,290	$ 17,963	$ 17,279
Taxable securities	2,857	2,572	2,672
Nontaxable securities	466	513	486
Other	43	90	147
Total interest and dividend income	21,656	21,138	20,584
INTEREST EXPENSE
Deposits	1,166	1,720	2,323
Short-term borrowings	77	67	91
Other borrowings	486	468	564
Total interest expense	1,729	2,255	2,978
NET INTEREST INCOME	19,927	18,883	17,606
PROVISION FOR LOAN LOSSES	643	840	823
Net interest income, after provision for loan losses	19,284	18,043	16,783
NONINTEREST INCOME
Service charges on deposit accounts	1,269	1,349	1,305
Trust services	811	826	671
Debit card interchange fees	910	779	797
Securities gains	133	159
Gain on sale of loans, net	198	347	591
Other income	929	858	840
Total noninterest income	4,250	4,318	4,204
NONINTEREST EXPENSES
Salaries and employee benefits	8,321	8,261	7,960
Occupancy expense	1,014	1,026	1,025
Equipment expense	715	719	618
Professional and director fees	725	628	814
Franchise tax expense	361	581	542
Marketing and public relations	378	395	392
Software expense	727	530	391
Debit card expense	421	291	331
Amortization of intangible assets	130	135	140
FDIC insurance expense	358	359	328
Net cost of operation of other real estate		9	33
Other expenses	1,932	1,914	1,876
Total noninterest expenses	15,082	14,848	14,450
Income before income taxes	8,452	7,513	6,537
FEDERAL INCOME TAX PROVISION	2,568	2,273	1,990
NET INCOME	$ 5,884	$ 5,240	$ 4,547
NET INCOME PER SHARE
Basic	$ 2.15	$ 1.91	$ 1.66
Diluted	$ 2.15	$ 1.91	$ 1.66

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Premises and Equipment

12 Months Ended

Dec. 31, 2014

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)	2014		2013
Land and improvements	$	1,489	$	1,489
Buildings and improvements		9,665		9,656
Furniture and equipment		7,567		7,327
Leasehold improvements		260		260
		18,981		18,732
Accumulated depreciation		10,695		10,042
Premises and equipment, net	$	8,286	$	8,690

The Bank leases certain office locations. Total rental expense under these leases approximated $299 thousand, $299 thousand, and $298 thousand in 2014, 2013 and 2012, respectively. Depreciation expense amounted to $653 thousand, $625 thousand and $567 thousand for the years ended December 31, 2014, 2013 and 2012, respectively.

Future minimum lease payments at December 31, 2014 were as follows:

(Dollars in thousands)
2015	$	294
2016		172
2017		32
Total	$	498

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Loans

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Loans

NOTE 3 – LOANS

Loans consist of the following at December 31:

(Dollars in thousands)	2014		2013
Commercial	$	123,813	$	117,478
Commercial real estate		139,695		129,828
Residential real estate		121,684		111,445
Construction & land development		17,446		13,444
Consumer		7,913		6,687
Total loans before deferred costs		410,551		378,882
Deferred loan costs		352		243
Total loans	$	410,903	$	379,125

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, 2014 and 2013, approximately 77% 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, 2014 and 2013, there were no concentrations of loans 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, 2014, 2013 and 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. During 2014, the increase in the provision for possible loan losses related to commercial loans was primarily due to the increase in the historical loss rate of loans in this category. The increase in the provision related to commercial real estate loans was affected by an increase in loan balances, offset by a decrease in impaired loans. The decrease in the provision related to residential real estate loans was affected by the decrease in the specific allocation amounts related to impaired residential real estate loans, as well as a decrease in the historical loss rates of the loans in this category. The decrease in the provision related to construction and consumer loans was due to the decrease in the historical loss rates in both of these categories.

										Construction
				Commercial			Residential			& Land
(Dollars in thousands)	Commercial			Real Estate			Real Estate			Development			Consumer			Unallocated			Total
December 31, 2014
Beginning balance	$	1,219		$	1,872		$	1,205		$	178		$	91		$	520		$	5,085
Provision for loan losses		1,047			23			(164	)		(36	)		(34	)		(193	)		643
Charge-offs		(1,005	)		(379	)		(27	)		–			(11	)					(1,422	)
Recoveries		28			8			25			–			14						75
Net charge-offs		(977	)		(371	)		(2	)		–			3						(1,347	)
Ending balance	$	1,289		$	1,524		$	1,039		$	142		$	60		$	327		$	4,381
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

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:

							Construction
			Commercial		Residential		& Land
(Dollars in thousands)	Commercial		Real Estate		Real Estate		Development		Consumer		Unallocated		Total
2014
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$	–	$	109	$	75	$	–	$	–	$	–	$	184
Collectively evaluated for impairment		1,289		1,415		964		142		60		327		4,197
Total ending allowance balance	$	1,289	$	1,524	$	1,039	$	142	$	60	$	327	$	4,381
Loans:
Loans individually evaluated for impairment	$	5,922	$	1,679	$	1,612	$	–	$	–			$	9,213
Loans collectively evaluated for impairment		117,891		138,016		120,072		17,446		7,913				401,338
Total ending loans balance	$	123,813	$	139,695	$	121,684	$	17,446	$	7,913			$	410,551
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

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

			Recorded
	Unpaid		Investment		Recorded		Total				Average		Interest
	Principal		With No		Investment		Recorded		Related		Recorded		Income
(Dollars in thousands)	Balance		Allowance		With Allowance		Investment		Allowance		Investment		Recognized
2014
Commercial	$	7,011	$	5,889	$	37	$	5,926	$	–	$	6,739	$	208
Commercial real estate		1,836		950		728		1,678		109		2,723		90
Residential real estate		1,721		885		730		1,615		75		1,796		61
Construction & land development		–		–		–		–		–		–		–
Total impaired loans	$	10,568	$	7,724	$	1,495	$	9,219	$	184	$	11,258	$	359
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

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

											Total Past
			30-59 Days		60-89 Days		90 Days +				Due and		Total
(Dollars in thousands)	Current		Past Due		Past Due		Past Due		Nonaccrual		Nonaccrual		Loans
2014
Commercial	$	122,283	$	362	$	96	$	1	$	1,071	$	1,530	$	123,813
Commercial real estate		137,683		174		104		–		1,734		2,012		139,695
Residential real estate		120,025		424		92		280		863		1,659		121,684
Construction & land development		17,431		–		15		–		–		15		17,446
Consumer		7,798		73		42		–		–		115		7,913
Total loans	$	405,220	$	1,033	$	349	$	281	$	3,668	$	5,331	$	410,551
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

Troubled Debt Restructurings

The Company had troubled debt restructurings (“TDRs”) of $6.8 million as of December 31, 2014, with $88 thousand of specific reserves allocated to customers whose loan terms have been modified in TDRs. As of December 31, 2013, the Company had TDRs of $8.6 million, with $583 thousand of specific reserves allocated. At December 31, 2014, $6.3 million of the loans classified as TDRs were performing in accordance with their modified terms. Of the remaining $518 thousand, all were in nonaccrual of interest status.

None of the loans that were restructured in 2012 or 2013 have defaulted in 2013 or 2014. 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:

	Number Of		Pre-Modification		Post-Modification
(Dollars in thousands)	Loans Restructured		Recorded Investment		Recorded Investment
2014
Residential real estate		1	$	84	$	84
Total restructured loans		1	$	84	$	84
2013
Commercial real estate		3	$	83	$	83
Residential real estate		3		264		264
Total restructured loans		6	$	347	$	347

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:

			Special						Not
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Rated		Total
2014
Commercial	$	112,467	$	3,809	$	6,690	$	–	$	847	$	123,813
Commercial real estate		129,792		4,898		3,634		–		1,371		139,695
Residential real estate		209		–		39		–		121,436		121,684
Construction & land development		13,889		1,579		–		–		1,978		17,446
Consumer		–		–		–		–		7,913		7,913
Total	$	256,357	$	10,286	$	10,363	$	–	$	133,545	$	410,551
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

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
2014
Commercial	$	847	$	–	$	847
Commercial real estate		1,371		–		1,371
Residential real estate		120,332		1,104		121,436
Construction & land development		1,978		–		1,978
Consumer		7,913		–		7,913
Total	$	132,441	$	1,104	$	133,545
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

Mortgage Servicing Rights

For the years ended December 31, 2014 and 2013, the Company had outstanding mortgage servicing rights (“MSRs”) of $222 thousand and $225 thousand, respectively. No valuation allowance was recorded at December 31, 2014 or 2013 as the fair value of the MSRs exceeded their carrying value. On December 31, 2014, the Company had $55.5 million residential mortgage loans with servicing retained as compared to $56.9 million with servicing retained at December 31, 2013.

Total loans serviced for others approximated $70.6 million and $70.2 million at December 31, 2014 and 2013, respectively.

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Fair Values of Financial Instruments

12 Months Ended

Dec. 31, 2014

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:

	2014
(Dollars in thousands)	Carrying Value		Level I		Level II		Level III		Total Fair Value
Financial assets:
Cash and cash equivalents	$	43,923	$	43,923	$	–	$	–	$	43,923
Securities available-for-sale		100,108		1,128		98,980		–		100,108
Securities held-to-maturity		38,316		–		38,950		–		38,950
Restricted stock		4,614		4,614		–		–		4,614
Loans held for sale		75		75		–		–		75
Net loans		406,522		–		–		411,168		411,168
Bank-owned life insurance		9,815		9,815		–		–		9,815
Accrued interest receivable		1,329		1,329		–		–		1,329
Mortgage servicing rights		222		–		–		222		222
Financial liabilities:
Deposits	$	500,075	$	372,312	$	–	$	128,445	$	500,757
Short-term borrowings		46,627		46,627		–		–		46,627
Other borrowings		14,953		–		–		15,348		15,348
Accrued interest payable		84		84		–		–		84
	2013
(Dollars in thousands)	Carrying Value		Level I		Level II		Level III		Total Fair 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
Mortgage servicing rights		225		–		–		225		225
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

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

Cash and cash equivalents; Loans held for sale; Accrued interest receivable; Mortgage servicing rights; 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, 2014 and 2013. These financial instruments relate to commitments to extend credit and letters of credit. The aggregated contract amount of such financial instruments was approximately $128.2 million at December 31, 2014 and $120.3 million at December 31, 2013. 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, 2014

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 years ended December 31:

(Dollars in thousands)	2014		2013
Balance at beginning of year	$	5,092	$	6,218
New loans and advances		72		315
Repayments, including loans sold		747		1,441
Balance at end of year	$	4,417	$	5,092

Deposits from executive officers, directors and their related business interests at both December 31, 2014 and 2013 were approximately $10.4 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, 2014	Dec. 31, 2013
Consolidated [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total capital (to risk-weighted assets), Actual Amount	$ 56,742	$ 53,268
Tier 1 capital (to risk-weighted assets), Actual Amount	52,353	48,357
Tier 1 capital (to average assets), Actual Amount	52,353	48,357
Total capital (to risk-weighted assets), Actual Ratio	13.60%	13.60%
Tier 1 capital (to risk-weighted assets), Actual Ratio	12.50%	12.30%
Tier 1 capital (to average assets), Actual Ratio	8.50%	8.20%
Total capital (to risk-weighted assets), Minimum Required For Capital Adequacy Purposes Amount	33,488	31,416
Tier 1 capital (to risk-weighted assets), Minimum Required For Capital Adequacy Purposes Amount	16,744	15,708
Tier 1 capital (to average assets), Minimum Required For Capital Adequacy Purposes Amount	24,602	23,550
Total capital (to risk-weighted assets), Minimum Required For Capital Adequacy Purposes Ratio	8.00%	8.00%
Tier 1 capital (to risk-weighted assets), Minimum Required For Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier 1 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	41,861	39,270
Tier 1 capital (to risk-weighted assets), Minimum Required To Be Well Capitalized Under Prompt Corrective Action Amount	25,116	23,562
Tier 1 capital (to average assets), Minimum Required To Be Well Capitalized Under Prompt Corrective Action Amount	30,753	29,438
Total capital (to risk-weighted assets), Minimum Required To Be Well Capitalized Under Prompt Corrective Action Ratio	10.00%	10.00%
Tier 1 capital (to risk-weighted assets), Minimum Required To Be Well Capitalized Under Prompt Corrective Action Ratio	6.00%	6.00%
Tier 1 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	55,731	52,458
Tier 1 capital (to risk-weighted assets), Actual Amount	51,342	47,558
Tier 1 capital (to average assets), Actual Amount	51,342	47,558
Total capital (to risk-weighted assets), Actual Ratio	13.30%	13.40%
Tier 1 capital (to risk-weighted assets), Actual Ratio	12.30%	12.10%
Tier 1 capital (to average assets), Actual Ratio	8.40%	8.10%
Total capital (to risk-weighted assets), Minimum Required For Capital Adequacy Purposes Amount	33,464	31,392
Tier 1 capital (to risk-weighted assets), Minimum Required For Capital Adequacy Purposes Amount	16,732	15,696
Tier 1 capital (to average assets), Minimum Required For Capital Adequacy Purposes Amount	24,597	23,544
Total capital (to risk-weighted assets), Minimum Required For Capital Adequacy Purposes Ratio	8.00%	8.00%
Tier 1 capital (to risk-weighted assets), Minimum Required For Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier 1 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	41,830	39,240
Tier 1 capital (to risk-weighted assets), Minimum Required To Be Well Capitalized Under Prompt Corrective Action Amount	25,098	23,544
Tier 1 capital (to average assets), Minimum Required To Be Well Capitalized Under Prompt Corrective Action Amount	$ 30,746	$ 29,430
Total capital (to risk-weighted assets), Minimum Required To Be Well Capitalized Under Prompt Corrective Action Ratio	10.00%	10.00%
Tier 1 capital (to risk-weighted assets), Minimum Required To Be Well Capitalized Under Prompt Corrective Action Ratio	6.00%	6.00%
Tier 1 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, 2014

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)	2014			2013
Balance at year-end	$	46,627		$	48,671
Average balance outstanding		51,855			45,330
Maximum month-end balance		63,717			48,671
Weighted-average rate at year-end		0.14	%		0.15	%
Weighted-average rate during the year		0.15			0.15

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:

					Weighted
					Average			Stated Interest
	Maturity Range				Interest			Rate Range						At December 31,
(Dollars in thousands)	From		To		Rate			From			To			2014		2013
Fixed rate		10/2/14		12/21/17		3.61	%		3.48	%		3.73	%	$	10,000	$	12,000
Fixed rate amortizing		1/1/14		4/1/24		1.42			1.16			7.15			4,953		459
														$	14,953	$	12,459

Maturities of other borrowings at December 31, 2014, are summarized as follows for the years ended December 31:

			Weighted
			Average
(Dollars in thousands)	Amount		Rate
2015	$	1,488		1.71	%
2016		1,079		1.58
2017		10,730		3.44
2018		534		1.16
2019 and beyond		1,122		1.16
	$	14,953		2.88	%

Monthly principal and interest payments, as well as 10% - 20% principal curtailments on the borrowings’ anniversary dates are due on the fixed-rate amortizing borrowings. FHLB borrowings are secured by a blanket collateral agreement. At December 31, 2014 the Company has the capacity to borrow an additional $46.1 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, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	$ 133,545	$ 121,662
Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	132,441	120,620
Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,104	1,042
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	847	865
Commercial [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	847	865
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,371	1,446
Commercial Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,371	1,446
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	121,436	111,161
Residential Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	120,332	110,119
Residential Real Estate [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,104	1,042
Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,978	1,503
Construction & Land Development [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,978	1,503
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	7,913	6,687
Consumer [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	$ 7,913	$ 6,687

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Core Deposit Intangible Assets

12 Months Ended

Dec. 31, 2014

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 2014, 2013 or 2012. 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 $130 thousand, $135 thousand and $140 thousand in 2014, 2013 and 2012, respectively. The following table shows the core deposit intangible and the related accumulated amortization as of December 31:

(Dollars in thousands)	2014			2013			2012
Gross carrying amount	$	1,251		$	1,251		$	1,251
Accumulated amortization		(622	)		(492	)		(357	)
Net carrying amount	$	629		$	759		$	894

The estimated aggregate future amortization expense for the core deposit assets remaining as of December 31, 2014 is as follows:

	Core Deposit
(Dollars in thousands)	Amortization
2015	$	125
2016		121
2017		116
2018		101
2019		63
Thereafter		103
	$	629

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Interest-Bearing Deposits

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Interest-Bearing Deposits

NOTE 6 – INTEREST-BEARING DEPOSITS

Interest-bearing deposits at December 31 are as follows:

(Dollars in thousands)	2014		2013
Demand	$	77,725	$	76,327
Savings		155,336		149,937
Time deposits:
In excess of $250,000		13,191		12,280
Other		114,572		122,064
Total interest-bearing deposits	$	360,824	$	360,608
At December 31, 2014, stated maturities of time deposits were as follows:
(Dollars in thousands)
2015	$	66,964
2016		26,155
2017		14,910
2018		15,323
2019		4,389
2020 and beyond		22
Total	$	127,763

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Income Taxes

12 Months Ended

Dec. 31, 2014

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)	2014		2013		2012
Current	$	2,393	$	2,196	$	2,040
Deferred		175		77		(50	)
Total income tax provision	$	2,568	$	2,273	$	1,990

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)	2014			2013			2012
Expected provision using statutory federal income tax rate	$	2,874		$	2,554		$	2,223
Tax-exempt income on state and municipal securities and political subdivision loans		(188	)		(203	)		(269	)
Interest expense associated with carrying certain state and municipal securities and political subdivision loans		4			6			6
Tax-exempt income on bank owned life insurance		(90	)		(86	)		(78	)
Other		(32	)		2			108
Total income tax provision	$	2,568		$	2,273		$	1,990

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)	2014			2013
Allowance for loan losses	$	1,648		$	1,887
Net operating loss carryforward		341			470
Capital loss carryforward		–			35
Unrealized loss on securities available-for-sale		145			750
Other		41			37
		2,175			3,179
Valuation allowance on deferred tax assets		–			(35	)
Deferred tax assets		2,175			3,144
Premises and equipment		(374	)		(443	)
Federal Home Loan Bank stock dividends		(609	)		(736	)
Deferred loan fees		(282	)		(226	)
Prepaid expenses		(159	)		(120	)
Other		(374	)		(462	)
Deferred tax liabilities		(1,798	)		(1,987	)
Net deferred tax asset	$	377		$	1,157

The Company has a net operating loss tax carry-forward of approximately $1 million, as of December 31, 2014. The net operating loss carryforward can be used to offset future taxable income and will begin to expire in tax year 2026.

The Company recognized the benefit of a capital loss carryforward due to expire in 2014 with the redemption of Federal Home Loan stock in 2014. The valuation allowance for the capital loss carry forward was reversed during 2014. 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. The Company 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, the Company is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years prior to 2011.

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Core Deposit Intangible Assets - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Amortization Expense [Line Items]
Amortization Expenses	$ 130,000	$ 135,000	$ 140,000
Core deposit intangible	0	0	0
Core Deposits [Member]
Amortization Expense [Line Items]
Amortization Expenses	$ 130,000	$ 135,000	$ 140,000
Asset Amortized over an estimated life	10 years

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Regulatory Matters - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Jan. 01, 2015
Schedule Of Regulatory Assets And Liabilities [Line Items]
Period of Retained Earnings For Restriction of Dividend	2 years
Maximum percentage of secured loans of Bank's common stock and capital surplus	10.00%
Subsequent Event [Member]
Schedule Of Regulatory Assets And Liabilities [Line Items]
Provision for dividend to the Company		$ 9.5

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Core Deposit Intangible Assets - Future Amortization Expense for Core Deposit Asset (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$ 125
2016	121
2017	116
2018	101
2019	63
Thereafter	103
Net carrying amount	$ 629

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Premises and Equipment - Summary of Future Minimum Lease Payments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2015	$ 294
2016	172
2017	32
Total	$ 498

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Fair Value Measurements - Schedule of Quantitative Information of Assets Measured at Fair Value on Nonrecurring Basis (Detail) (Impaired Loans [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Level III [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value estimate	6,539	8,663
Level III [Member] | Appraisal of Collateral [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value estimate	2,490	1,193
Fair Value, Measurements, Nonrecurring [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value estimate	9,029	9,856
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value estimate	9,029	9,856
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Discounted Cash Flow [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Remaining term	2 months	3 months
Discount rate	3.10%	7.10%
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Discounted Cash Flow [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Remaining term	28 years	29 years
Discount rate	8.30%	12.00%
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Discounted Cash Flow [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Remaining term	62 months	62 months
Discount rate	4.60%	7.50%
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Appraisal of Collateral [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Liquidation expense	(10.00%)	(10.00%)
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Appraisal of Collateral [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Appraisal adjustments	(20.00%)	(20.00%)
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Appraisal of Collateral [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Appraisal adjustments	(25.00%)	(25.00%)
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Appraisal of Collateral [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Appraisal adjustments	(24.00%)	(24.00%)

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Borrowings (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Short-Term Borrowings

The outstanding balances and related information for short-term borrowings are summarized as follows:

(Dollars in thousands)	2014			2013
Balance at year-end	$	46,627		$	48,671
Average balance outstanding		51,855			45,330
Maximum month-end balance		63,717			48,671
Weighted-average rate at year-end		0.14	%		0.15	%
Weighted-average rate during the year		0.15			0.15

Concerning of Other Borrowings

The following table sets forth information concerning other borrowings:

					Weighted
					Average			Stated Interest
	Maturity Range				Interest			Rate Range						At December 31,
(Dollars in thousands)	From		To		Rate			From			To			2014		2013
Fixed rate		10/2/14		12/21/17		3.61	%		3.48	%		3.73	%	$	10,000	$	12,000
Fixed rate amortizing		1/1/14		4/1/24		1.42			1.16			7.15			4,953		459
														$	14,953	$	12,459

Schedule of Maturities Other Borrowings

Maturities of other borrowings at December 31, 2014, are summarized as follows for the years ended December 31:

			Weighted
			Average
(Dollars in thousands)	Amount		Rate
2015	$	1,488		1.71	%
2016		1,079		1.58
2017		10,730		3.44
2018		534		1.16
2019 and beyond		1,122		1.16
	$	14,953		2.88	%

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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, 2014	Dec. 31, 2013
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Held-to-maturity, Gross Unrealized Losses, Total	$ 58	$ 1,707
Gross Unrealized Losses, Less Than 12 Months	77	3,065
Fair Value, Less Than 12 Months	16,936	85,737
Gross Unrealized Losses, 12 Months Or More	269	196
Fair Value, 12 Months Or More	21,476	4,416
Gross Unrealized Losses, Total	346	3,261
Fair Value, Total	38,412	90,153
Equity Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Gross Unrealized Losses, 12 Months Or More	1
Fair Value, 12 Months Or More	1
Gross Unrealized Losses, Total	1
Fair Value, Total	1
U.S. Treasury Security [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Gross Unrealized Losses, Less Than 12 Months	4	8
Fair Value, Less Than 12 Months	1,000	997
Gross Unrealized Losses, Total	4	8
Fair Value, Total	1,000	997
U.S. Government Agencies [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Held-to-maturity, Gross Unrealized Losses, Less Than 12 Months	2	771
Held-to-maturity, Fair Value, Less Than 12 Months	998	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	2	828
Held-to-maturity, Fair Value, Total	998	16,358
Gross Unrealized Losses, Less Than 12 Months	12	590
Fair Value, Less Than 12 Months	5,188	15,409
Gross Unrealized Losses, 12 Months Or More	143	116
Fair Value, 12 Months Or More	5,856	1,884
Gross Unrealized Losses, Total	155	706
Fair Value, Total	11,044	17,293
Mortgage-Backed Securities of Government Agencies [Member]
Schedule Of Available For Sale Securities And Held To Maturity [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	56
Held-to-maturity, Fair Value, 12 Months Or More	9,265
Held-to-maturity, Gross Unrealized Losses, Total	56	879
Held-to-maturity, Fair Value, Total	9,265	20,149
Gross Unrealized Losses, Less Than 12 Months	40	691
Fair Value, Less Than 12 Months	6,348	29,938
Gross Unrealized Losses, 12 Months Or More	39
Fair Value, 12 Months Or More	4,939
Gross Unrealized Losses, Total	79	691
Fair Value, Total	11,287	29,938
State and Political Subdivisions [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Gross Unrealized Losses, Less Than 12 Months	13	122
Fair Value, Less Than 12 Months	1,300	3,522
Gross Unrealized Losses, 12 Months Or More	31	21
Fair Value, 12 Months Or More	1,416	233
Gross Unrealized Losses, Total	44	143
Fair Value, Total	2,716	3,755
Corporate Bonds [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Gross Unrealized Losses, Less Than 12 Months	1	4
Fair Value, Less Than 12 Months	499	1,163
Gross Unrealized Losses, 12 Months Or More		1
Fair Value, 12 Months Or More		499
Gross Unrealized Losses, Total	1	5
Fair Value, Total	499	1,662
Asset-Backed Securities of Government Agencies [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Gross Unrealized Losses, Less Than 12 Months	5
Fair Value, Less Than 12 Months	1,603
Gross Unrealized Losses, Total	5
Fair Value, Total	$ 1,603

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Condensed Parent Company Financial Information

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013 and for each of the three years in the period ended December 31, 2014 follows:

(Dollars in thousands)	2014			2013
CONDENSED BALANCE SHEETS
ASSETS
Cash deposited with subsidiary bank	$	699		$	598
Investment in subsidiary bank		56,424			51,596
Securities available-for-sale		128			128
Other assets		199			192
TOTAL ASSETS	$	57,450		$	52,514
LIABILITIES AND SHAREHOLDERS’ EQUITY
Total liabilities	$	–		$	103
Total shareholders’ equity		57,450			52,411
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	57,450		$	52,514
(Dollars in thousands)	2014			2013			2012
CONDENSED STATEMENTS OF INCOME
Interest on securities	$	2		$	2		$	2
Dividends from subsidiary		2,400			2,400			2,000
Total income		2,402			2,402			2,002
Operating expenses		312			356			354
Income before taxes and undistributed equity income of subsidiary		2,090			2,046			1,648
Income tax benefit		(141	)		(121	)		(120	)
Equity earnings in subsidiary, net of dividends		3,653			3,073			2,779
NET INCOME	$	5,884		$	5,240		$	4,547
COMPREHENSIVE INCOME	$	7,058		$	1,920		$	4,981

(Dollars in thousands)	2014			2013			2012
CONDENSED STATEMENTS OF CASH FLOWS
Cash flows from operating activities:
Net income	$	5,884		$	5,240		$	4,547
Adjustments to reconcile net income to cash provided by operations:
Equity earnings in subsidiary, net of dividends		(3,653	)		(3,073	)		(2,779	)
Change in other assets, liabilities		(111	)		42			49
Net cash provided by operating activities		2,120			2,209			1,817
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		(2,026	)		(1,970	)		(1,969	)
Cash received from exercise of stock options		7			8			5
Net cash used in financing activities		(2,019	)		(1,962	)		(1,964	)
Increase (decrease) in cash		101			210			(147	)
Cash at beginning of year		598			388			535
Cash at end of year	$	699		$	598		$	388

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Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2014

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
2014								`
First quarter		$  5,336		$  4,898		$  1,416		$  0.52		$  0.52
Second quarter		5,484		5,045		1,522		0.55		0.55
Third quarter		5,435		4,997		1,507		0.55		0.55
Fourth quarter		5,401		4,987		1,439		0.53		0.53
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

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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, 2014	Dec. 31, 2013	Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized holding gain (loss) on available-for-sale securities arising during the period, Pretax	$ 1,612	$ (3,195)	$ 657
Amount reclassified for net gains included in net income, Pretax	(133)	(159)
Unrealized loss on securities transferred from available-for-sale to held-to-maturity, Pretax		(1,931)
Unrealized holding (loss) gain on available-for-sale securities arising during the period, Tax Effect	651	(1,656)	223
Amount reclassified for net gains included in net income, Tax Effect	(45)	(54)
Beginning balance, After-tax	(1,456)
Other comprehensive income (loss)	1,174	(3,320)	434
Ending balance, After-tax	(282)	(1,456)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, Pretax	(2,207)	2,823
Unrealized holding gain (loss) on available-for-sale securities arising during the period, Pretax	1,612	(3,195)
Amount reclassified for net gains included in net income, Pretax	(133)	(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	301	255
Total other comprehensive (loss) income, Pretax	1,780	(5,030)
Ending balance, Pretax	(427)	(2,207)
Beginning balance, Tax Effect	751	(959)
Unrealized holding (loss) gain on available-for-sale securities arising during the period, Tax Effect	(549)	1,086
Amount reclassified for net gains included in net income, Tax Effect	45	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	(102)	(87)
Total other comprehensive (loss) income, Tax Effect	(606)	1,710
Ending balance, Tax Effect	145	751
Beginning balance, After-tax	(1,456)	1,864
Unrealized holding (loss) gain on available-for-sale securities arising during the period, After-tax	1,063	(2,109)
Amount reclassified for net gains included in net income, After-tax	(88)	(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	199	168
Other comprehensive income (loss)	1,174	(3,320)
Ending balance, After-tax	$ (282)	$ (1,456)

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Securities - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012 Securities	Dec. 31, 2014 Security Securities	Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]
Carrying value of pledged securities		$ 88,400,000	$ 87,900,000
Restricted stock investment in FHLB stock		4,100,000	5,000,000
Federal Reserve Bank stock		$ 471,000	$ 471,000
Number of securities sold during the period	0
Number of securities in unrealized loss position		34
Number of securities in continuous loss position		19

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014 and December 31, 2013, by level within the fair value hierarchy.  

(Dollars in thousands)	Level I		Level II		Level III		Total
Assets:				December 31, 2014
Securities available-for-sale
U.S. Treasury security	$	1,000	$	–	$	–	$	1,000
U.S. Government agencies		–		25,079		–		25,079
Mortgage-backed securities of government agencies		–		48,347		–		48,347
Other mortgage-backed securities		–		141		–		141
Asset-backed securities of government agencies		–		2,604		–		2,604
State and political subdivisions		–		18,267		–		18,267
Corporate bonds		–		4,542		–		4,542
Total debt securities		1,000		98,980		–		99,980
Equity securities		128		–		–		128
Total available-for-sale securities	$	1,128	$	98,980	$	–	$	100,108
Assets:				December 31, 2013
Securities available-for-sale
U.S. Treasury security	$	997	$	–	$	–	$	997
U.S. Government agencies		–		22,301		–		22,301
Mortgage-backed securities of government agencies		–		54,300		–		54,300
Other mortgage-backed securities		–		235		–		235
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

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, 2014 and December 31, 2013, by level within the fair value hierarchy. 

(Dollars in thousands)	Level I			Level II		Level III		Total
Assets measured on a nonrecurring basis:			December 31, 2014
Impaired loans	$	–		$	–	$	9,029	$	9,029
Assets measured on a nonrecurring basis:			December 31, 2013
Impaired loans	$	–		$	–	$	9,856	$	9,856

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
	Fair Value		Valuation	Unobservable	Range
(Dollars in thousands)	Estimate		Techniques	Input	(Weighted Average)
				December 31, 2014
			Discounted	Remaining term	2 mos to 28 yrs / (62 mos)
Impaired loans	$	6,539	cash flow	Discount rate	3.1% to 8.3% / (4.6%)
			Appraisal of	Appraisal adjustments2	–20% to –25% (–24%)
		2,490	collateral1,3	Liquidation expense2	–10%
				December 31, 2013
			Discounted	Remaining term	3 mos to 29 yrs / (62 mos)
Impaired loans	$	8,663	cash flow	Discount rate	7.1% to 12% / (7.5%)
			Appraisal of	Appraisal adjustments2	–20% to –25% (–24%)
		1,193	collateral1,3	Liquidation expense2	–10%

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

²Appraisals 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.

³Includes 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, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net Income	$ 5,884	$ 5,240
Other comprehensive income (loss)
Unrealized gains (losses) arising during the period	1,612	(3,195)
Unrealized losses on held to maturity transfer		(1,931)
Amounts reclassified from accumulated other comprehensive income, held-to-maturity	301	255
Income tax effect	(651)	1,656
Reclassification adjustment for gains on available for sale securities included in net income	(133)	(159)
Income tax effect	45	54
Other comprehensive income (loss)	1,174	(3,320)
Total comprehensive income	$ 7,058	$ 1,920

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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, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net Income	$ 5,884	$ 5,240	$ 4,547
Adjustments to reconcile net income to cash provided by operations:
Change in other assets, liabilities	(308)	339	831
Net cash provided by operating activities	7,163	6,949	7,064
Cash flows from investing activities:
Purchase of investment securities	(34,893)	(55,693)	(82,382)
Net cash used in investing activities	(23,421)	(39,282)	(52,931)
Cash flows from financing activities:
Cash dividends paid	(2,026)	(1,970)	(1,969)
Cash received from exercise of stock options	7	8	5
Net cash provided by (used in) financing activities	17,582	8,054	30,487
Increase (decrease) in cash	1,324	(24,279)	(15,380)
Parent Company [Member]
Cash flows from operating activities:
Net Income	5,884	5,240	4,547
Adjustments to reconcile net income to cash provided by operations:
Equity earnings in subsidiary, net of dividends	(3,653)	(3,073)	(2,779)
Change in other assets, liabilities	(111)	42	49
Net cash provided by operating activities	2,120	2,209	1,817
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	(2,026)	(1,970)	(1,969)
Cash received from exercise of stock options	7	8	5
Net cash provided by (used in) financing activities	(2,019)	(1,962)	(1,964)
Increase (decrease) in cash	101	210	(147)
Cash at beginning of year	598	388	535
Cash at end of year	$ 699	$ 598	$ 388

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Securities

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Securities

NOTE 2 – SECURITIES

Securities consist of the following at December 31:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
2014
Available-for-sale:
U.S. Treasury security	$	1,004	$	–	$	4	$	1,000
U.S. Government agencies		25,228		6		155		25,079
Mortgage-backed securities of government agencies		47,696		730		79		48,347
Other mortgage-backed securities		139		2		–		141
Asset-backed securities of government agencies		2,606		3		5		2,604
State and political subdivisions		17,878		433		44		18,267
Corporate bonds		4,503		40		1		4,542
Equity securities		106		22		–		128
Total available-for-sale		99,160		1,236		288		100,108
Held-to-maturity securities
U.S. Government agencies		16,343		294		2		16,635
Mortgage-backed securities of government agencies		21,973		398		56		22,315
Total held-to-maturity		38,316		692		58		38,950
Restricted stock		4,614		–		–		4,614
Total securities	$	142,090	$	1,928	$	346	$	143,672
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

The amortized cost and fair value of debt securities at December 31, 2014, 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.

	Amortized		Fair
(Dollars in thousands)	Cost		Value
Available-for-sale:
Due in one year or less	$	4,649	$	4,684
Due after one through five years		20,221		20,332
Due after five through ten years		23,289		23,427
Due after ten years		50,895		51,537
Total debt securities available-for-sale	$	99,054	$	99,980
Held-to-maturity:
Due in one year or less	$	–	$	–
Due after one through five years		–		–
Due after five through ten years		8,692		8,830
Due after ten years		29,624		30,120
Total debt securities held-to-maturity	$	38,316	$	38,950

Securities with a market value of approximately $88.4 million and $87.9 million were pledged at December 31, 2014 and 2013, 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 $4.1 million and $5 million at December 31, 2014 and 2013, respectively. Federal Reserve Bank stock was $471 thousand at December 31, 2014 and 2013.

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 2014 and 2013. There were no securities sold during 2012.

(Dollars in thousands)	2014		2013
Proceeds	$	2,483	$	4,309
Realized gains	$	133	$	159
Realized losses		–		–
Net securities gains	$	133	$	159

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
	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
(Dollars in thousands)	Losses		Value		Losses		Value		Losses		Value
2014
Available-for-sale
U.S. Treasury security	$	4	$	1,000	$	–	$	–	$	4	$	1,000
U.S. Government agencies		12		5,188		143		5,856		155		11,044
Mortgage-backed securities of government agencies		40		6,348		39		4,939		79		11,287
Asset-backed securities of government agencies		5		1,603		–		–		5		1,603
State and political subdivisions		13		1,300		31		1,416		44		2,716
Corporate bonds		1		499		–		–		1		499
Held-to-maturity
U.S. Government agencies		2		998		–		–		2		998
Mortgage-backed securities of government agencies		–		–		56		9,265		56		9,265
Total temporarily impaired securities	$	77	$	16,936	$	269	$	21,476	$	346	$	38,412
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

There were thirty-four (34) securities in an unrealized loss position at December 31, 2014, nineteen (19) 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, 2014.

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Loans - Summary of Troubled Debt Restructurings (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 Contract	Dec. 31, 2013 Contract
Financing Receivable, Modifications [Line Items]
Number Of Loans Restructured	1	6
Pre-Modification Recorded Investment	$ 84	$ 347
Post-Modification Recorded Investment	84	347
Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number Of Loans Restructured	1	3
Pre-Modification Recorded Investment	84	264
Post-Modification Recorded Investment	84	264
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number Of Loans Restructured		3
Pre-Modification Recorded Investment		83
Post-Modification Recorded Investment		$ 83

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Related-Party Transactions - Summary of Analysis of Activity of Related-Party Loans (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Related Party Transactions [Abstract]
Balance at beginning of year	$ 5,092	$ 6,218
New loans and advances	72	315
Repayments, including loans sold	747	1,441
Balance at end of year	$ 4,417	$ 5,092

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Borrowings - Short-Term Borrowings (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Equity Method Investments And Cost Method Investments [Abstract]
Balance at year-end	$ 46,627	$ 48,671
Average balance outstanding	51,855	45,330
Maximum month-end balance	$ 63,717	$ 48,671
Weighted-average rate at year-end	0.14%	0.15%
Weighted-average rate during the year	0.15%	0.15%

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013.

Securities

SECURITIES

At the time of purchase all securities are evaluated and designated as available-for-sale or held-to-maturity. 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 of U.S. Government agencies and mortgage-backed securities of government agencies were transferred from available-for-sale to held-to-maturity. At December 31, 2014, 27% 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 it would if the entire portfolio was included in the available-for sale category. 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 noninterest 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 2014 and 2013, 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, 2014 or 2013.

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, construction loans and troubled debt restructurings 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 noninterest expenses, as are gains or losses upon sale and expenses related to maintenance of the properties. There was no other real estate owned at December 31, 2014 and 2013.

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. Leasehold improvements are amortized over the useful life of the asset.

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 2014 or 2013.

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 2014, 2013 and 2012 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 carry forwards. 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. As of December 31, 2014, there was no unrecognized compensation cost related to unvested share-based compensation awards outstanding. All shares are vested. The Company recorded no stock-based compensation expense for 2014, 2013 or 2012.

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, 2014 and 2013.

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:

	2014			2013			2012
Weighted average common shares		2,980,602			2,980,602			2,980,602
Average treasury shares		(242,966	)		(244,129	)		(245,713	)
Total weighted average common shares outstanding (basic)		2,737,636			2,736,473			2,734,889
Dilutive effect of assumed exercise of stock options		1,442			2,004			252
Weighted average common shares outstanding (diluted)		2,739,078			2,738,477			2,735,141

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, 2014. Options to purchase an aggregate of 11,904 and 30,760 common shares were outstanding at December 31, 2014 and 2013.

Accounting Developments

ACCOUNTING DEVELOPMENTS

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. This Update is not expected to have a significant impact on the Company’s financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting Update.

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. This Update is not expected to have a significant impact on the Company’s financial statements.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. 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. This Update is not expected to have a significant impact on the Company’s financial statements.

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards. This Update eliminates from GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This Update is not expected to have a significant impact on the Company’s financial statements.

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.

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Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Federal income tax effective rate	34.00%
Net operating loss tax carry-forward	$ 1,000,000
Operating loss carryforward expiration	2026
Capital loss carryforward expiration	2014
Liability for uncertain tax position	0
Unrecognized tax benefits	$ 0

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Related-Party Transactions (Tables)

12 Months Ended

Dec. 31, 2014

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 years ended December 31:

(Dollars in thousands)	2014		2013
Balance at beginning of year	$	5,092	$	6,218
New loans and advances		72		315
Repayments, including loans sold		747		1,441
Balance at end of year	$	4,417	$	5,092

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Regulatory Matters

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013 that the Company and Bank met or exceeded all capital adequacy requirements to which they are subject.

As of December 31, 2014, 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
2014
Total capital (to risk-weighted assets)
Consolidated	$	56,742		13.6	%	$	33,488		8.0	%	$	41,861		10.0	%
Bank		55,731		13.3			33,464		8.0			41,830		10.0
Tier 1 capital (to risk-weighted assets)
Consolidated		52,353		12.5			16,744		4.0			25,116		6.0
Bank		51,342		12.3			16,732		4.0			25,098		6.0
Tier 1 capital (to average assets)
Consolidated		52,353		8.5			24,602		4.0			30,753		5.0
Bank		51,342		8.4			24,597		4.0			30,746		5.0
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 1 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 1 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

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, 2015, the Bank could dividend $9.5 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.