(Exact ~~name~~Name of ~~registrant~~Registrant as ~~specified~~Specified in its ~~charter)~~Charter)

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. 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 RegulationS-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or a~~non-accelerated~~ ~~filer.~~an emerging growth company. See ~~definition~~the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and ~~large accelerated filer”~~“emerging growth company” in Rule12b-2 of the Exchange Act. ~~(Check one):~~

~~Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2~~ ~~of the Exchange Act). Yes ☐ No ☒~~

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the ~~number of shares outstanding~~registrant is a shell company (as defined in Rule 12b-2 of the ~~registrant’s~~Exchange Act). Yes ☐ No ☒

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☒ No ☐

As of May 1, 2023, the registrant had 2,680,625 shares of common stock, as$6.25 par value per share, outstanding.

Note 2 – SECURITIES

Securities consist of the following ~~at September 30, 2017~~on March 31, 2023 and December 31, ~~2016:~~2022:


(Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
September 30, 2017
March 31, 2023
Available-for-sale
U.S. Treasury security	$	999	$	—	$	1	$	998
U.S. Treasury securities									$	23,174	$	—	$	(746	)	$	22,428
U.S. Government agencies		8,350		—		50		8,300		13,999		—		(1,149	)		12,850
Mortgage-backed securities of government agencies		50,452		340		286		50,506		75,653		31		(7,789	)		67,895
Asset-backed securities of government agencies		1,198		—		4		1,194		606		—		(35	)		571
State and political subdivisions		27,166		385		74		27,477		20,431		1		(660	)		19,772
Corporate bonds		9,580		70		167		9,483		28,715		—		(2,962	)		25,753
Total available-for-sale										162,578		32		(13,341	)		149,269
Held-to-maturity
U.S Treasury Securities									$	12,766	$	—	$	(930	)	$	11,836
Mortgage-backed securities of government agencies										227,996		50		(29,228	)		198,818
State and political subdivisions										2,572		6		(181	)		2,397
Total held-to-maturity										243,334		56		(30,339	)		213,051
Equity securities		53		37		—		90		185		68		—			253

Totalavailable-for-sale		97,798		832		582		98,048

Held-to-maturity
Restricted stock										1,760		—		—			1,760
Total securities									$	407,857	$	156	$	(43,680	)	$	364,333
December 31, 2022
Available-for-sale
U.S. Treasury securities									$	23,194	$	—	$	(969	)	$	22,225
U.S. Government agencies		9,475		21		153		9,343		13,999		—		(1,369	)		12,630
Mortgage-backed securities of government agencies		12,300		170		96		12,374		77,677		72		(8,859	)		68,890
State and political subdivisions		4,700		14		—		4,714

Totalheld-to-maturity		26,475		205		249		26,431

Restricted stock		4,614		—		—		4,614

Total securities	$	128,887	$	1,037	$	831	$	129,093

December 31, 2016
Available-for-sale
U.S. Treasury security	$	1,001	$	—	$	—	$	1,001
U.S. Government agencies		6,500		—		98		6,402
Mortgage-backed securities of government agencies		56,187		239		589		55,837
Other mortgage-backed securities		65		—		—		65
Asset-backed securities of government agencies		1,312		—		46		1,266		633		—		(15	)		618
State and political subdivisions		30,007		140		439		29,708		20,462		—		(985	)		19,477
Corporate bonds		9,632		28		144		9,516		28,740		—		(2,511	)		26,229
Equity securities		53		27		—		80

Totalavailable-for-sale		104,757		434		1,316		103,875		164,705		72		(14,708	)		150,069
Held-to-maturity
U.S. Government agencies		9,472		17		396		9,093
U.S Treasury Securities									$	12,753	$	—	$	(1,136	)	$	11,617
Mortgage-backed securities of government agencies		14,411		141		201		14,351		232,068		—		(34,051	)		198,017

State and political subdivisions										2,580		1		(261	)		2,320
Totalheld-to-maturity		23,883		158		597		23,444		247,401		1		(35,448	)		211,954
Equity securities										185		59		—			244
Restricted stock		4,614		—		—		4,614		3,430		—		—			3,430

Total securities	$	133,254	$	592	$	1,913	$	131,933	$	415,721	$	132	$	(50,156	)	$	365,697

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

~~NOTE~~Note 2 – SECURITIES~~(CONTINUED)~~(continued)

The amortized cost and fair value of debt securities ~~at September 30, 2017,~~on March 31, 2023, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(Dollars in thousands)
   Amortized
cost    Fair value
Available-for-sale

Due in one year or less
   $ 3,190    $ 3,208
Due after one through five years
   18,798    18,917
Due after five through ten years
   26,083    26,271
Due after ten years
   49,674    49,562




Total debt securitiesavailable-for-sale
   $ 97,745    $ 97,958




Held-to-maturity

Due in one year or less
   $ 4,700    $ 4,714
Due after one through five years
   477    498
Due after five through ten years
   3,000    2,914
Due after ten years
   18,298    18,305




Total debt securitiesheld-to-maturity
   $ 26,475    $ 26,431


(Dollars in thousands)	Amortized cost		Fair value
Available-for-sale
Due in one year or less	$	7,956	$	7,798
Due after one through five years		62,410		58,490
Due after five through ten years		24,650		22,777
Due after ten years		67,562		60,204
Total debt securities available-for-sale	$	162,578	$	149,269
Held-to-maturity
Due in one year or less	$	2,498	$	2,446
Due after one through five years		7,419		6,907
Due after five through ten years		4,748		4,260
Due after ten years		228,669		199,438
Total debt securities held-to-maturity	$	243,334	$	213,051

Securities with a fair value of approximately ~~$101~~$135.0 million and ~~$95~~$110.1 million were pledged ~~at September 30, 2017~~on March 31, 2023 and December 31, ~~2016,~~2022, 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 Federal Home Loan Bank of Cincinnati (FHLB) and Federal Reserve Bank stock. The Bank’s investment in FHLB stock amounted to approximately ~~$4.1~~$1.3 million ~~at September 30, 2017~~and $2.9 million on March 31, 2023 and December 31, ~~2016.~~2022. The FHLB has redeemed approximately $1.6 million in stock during the first quarter at $100 par value per share. Federal Reserve Bank stock was ~~$471~~$471 thousand ~~at September 30, 2017~~on March 31, 2023 and December 31, ~~2016.~~2022.

There were no proceeds from sales of securities for the ~~three or nine month periods ending September 30, 2017. There~~three-month period ended March 31, 2023 and 2022. All gains and losses recognized on equity securities during the three-month period were ~~proceeds received and gains recognized of $1 thousand on the conversion of restricted stock in the nine month period ending September 30, 2016.~~unrealized.

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

~~NOTE~~Note 2 – SECURITIES~~(CONTINUED)~~(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 September 30, 2017~~on March 31, 2023 and December 31, ~~2016:~~2022:


	Securities in a continuous unrealized loss position												Securities in a continuous unrealized loss position
	Less than 12 months				12 months or more				Total				Less than 12 months					12 months or more					Total
(Dollars in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value
September 30, 2017
March 31, 2023
Available-for-sale
U.S. Treasury security	$	1	$	998	$	—	$	—	$	1	$	998
U.S. Treasury securities													$	(152	)	$	7,815	$	(594	)	$	14,613	$	(746	)	$	22,428
U.S. Government agencies		10		3,840		40		4,460		50		8,300		—			—		(1,149	)		12,850		(1,149	)		12,850
Mortgage-backed securities of government agencies		245		20,128		41		2,316		286		22,444		(35	)		4,870		(7,754	)		54,883		(7,789	)		59,753
Asset-backed securities of government agencies		—		—		4		1,194		4		1,194		—			—		(35	)		571		(35	)		571
State and political subdivisions		9		1,693		65		2,961		74		4,654		(37	)		5,411		(623	)		12,415		(660	)		17,826
Corporate bonds		—		—		167		2,333		167		2,333		(459	)		6,086		(2,503	)		19,667		(2,962	)		25,753
Held-to-maturity
U.S. Government agencies		32		3,966		121		4,879		153		8,845
U.S. Treasury Securities														—			—		(930	)		11,836		(930	)		11,836
Mortgage-backed securities of government agencies		3		2,011		93		3,274		96		5,285		(172	)		7,370		(29,056	)		182,498		(29,228	)		189,868

Total temporarily impaired securities	$	300	$	32,636	$	531	$	21,417	$	831	$	54,053

December 31, 2016
State and political subdivisions														—			—		(181	)		1,977		(181	)		1,977
Total impaired securities													$	(855	)	$	31,552	$	(42,825	)	$	311,310	$	(43,680	)	$	342,862
December 31, 2022
Available-for-sale
U.S. Treasury securities													$	(798	)	$	17,405	$	(171	)	$	4,820	$	(969	)	$	22,225
U.S. Government agencies	$	98	$	6,402	$	—	$	—	$	98	$	6,402		—			—		(1,369	)		12,630		(1,369	)		12,630
Mortgage-backed securities of government agencies		589		27,243		—		—		589		27,243		(1,046	)		16,188		(7,813	)		44,519		(8,859	)		60,707
Asset-backed securities of government agencies		—		—		46		1,266		46		1,266		—			—		(15	)		618		(15	)		618
State and political subdivisions		439		19,328		—		—		439		19,328		(189	)		9,079		(796	)		9,848		(985	)		18,927
Corporate bonds		33		3,593		111		1,889		144		5,482		(1,165	)		13,502		(1,346	)		12,727		(2,511	)		26,229
Held-to-maturity																											—
U.S. Government agencies		396		8,602		—		—		396		8,602
U.S. Treasury Securities														—			—		(1,136	)		11,617		(1,136	)		11,617
Mortgage-backed securities of government agencies		28		2,018		173		3,621		201		5,639		(9,733	)		79,325		(24,318	)		118,692		(34,051	)		198,017

State and political subdivisions														—			—		(261	)		1,903		(261	)		1,903
Total temporarily impaired securities	$	1,583	$	67,186	$	330	$	6,776	$	1,913	$	73,962	$	(12,931	)	$	135,499	$	(37,225	)	$	217,374	$	(50,156	)	$	352,873

There were~~forty-six~~190 securities in an unrealized loss position ~~at September 30, 2017, twenty (20)~~on March 31, 2023, 158 of which were in a continuous loss position for twelve (12) months or more. There were 200 securities in an unrealized loss position on December 31, 2022, 90 of which were in a continuous loss position for twelve (12) 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 in an unrealized loss position, the extent and duration of the loss and 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. 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~~at a credit loss on March 31, 2023 and were not other than temporarily impaired ~~at September 30, 2017.~~on December 31, 2022, respectively.

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 2 – SECURITIES (continued)

The Bank monitors the credit quality of held-to-maturity debt securities primarily through utilizing their credit rating. The Bank monitors the credit rating on a quarterly basis. There are no nonperforming held-to-maturity securities. As of March 31, 2023, no ACL was required for any held-to-maturity security. The following table summarizes the amortized cost of held-to maturity debt securities at March 31, 2023, aggregated by credit quality indicator:


(Dollars in thousands)	U.S. Treasury securities		Mortgage- backed securities of government agencies		State and political subdivisions
March 31, 2023
Credit rating:
AAA / AA / A	$	12,766	$	227,996	$	2,572
BBB / BB / B		—		—		—
Lower than B		—		—		—
Non-rated		—		—		—
Total	$	12,766	$	227,996	$	2,572

NOTE 3 – LOANS

~~Loans consist~~The composition of ~~the following:~~net loans receivable as of March 31, 2023 and December 31, 2022:


(Dollars in thousands)	March 31, 2023
Commercial and industrial	$	137,369
Commercial real estate		167,878
Commercial lessors of buildings		81,917
Construction		43,498
Consumer mortgage		157,316
Home equity line of credit		43,323
Consumer installment		9,951
Consumer indirect		6,374
Total loans		647,626
Allowance for credit losses		(6,307	)
Deferred loan costs, net		147
Net Loans	$	641,466


(Dollars in thousands)	September 30, 2017		December 31, 2016		December 31, 2022
Commercial	$	137,459	$	134,268	$	129,343
Commercial real estate		177,588		159,475		231,785
Residential real estate		153,281		144,489		194,125
Construction & land development		23,915		23,428		55,318
Consumer		16,686		13,308		16,387

Total loans before deferred costs		508,929		474,968
Deferred loan costs		529		481

Total loans						626,958
Allowance for loan losses						(6,838	)
Deferred loan costs, net						213
Total Loans	$	509,458	$	475,449	$	620,333

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.~~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 andnon-performing 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. The cash flows of borrowers; however, 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 equipment, 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.

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 – LOANS (CONTINUED)

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 versusnon-owner ~~occupied loans.~~ occupied.

With respect to loans to developers and builders that are secured by~~non-owner~~ ~~occupied~~ 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.

~~CSB BANCORP, INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~NOTE 3 – LOANS~~~~(CONTINUED)~~

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 bepre-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 byon-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~~mitigates risk.

The Company maintains an independent ~~loan review~~credit 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.

Loans serviced for others approximated ~~$79.8~~$135.0 and $137.5 million ~~and $85.9 million at September 30, 2017~~on March 31, 2023 and December 31, ~~2016,~~2022, respectively.

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 – LOANS (CONTINUED)

Concentrations of Credit

Nearly all of the Company’s lending activity occurs within the state of Ohio, including the four ~~(4)~~ counties of Holmes, Stark, Tuscarawas and Wayne, as well as other markets. The majority of the Company’s loan portfolio consists of commercial and commercial real estate loans. AsCredit concentrations, including commitments, as determined using North American Industry Classification Codes (NAICS), to the two largest industries compared to total loans on March 31, 2023, included $68.6 million, or 11%, of ~~September 30, 2017~~total loans to lessors of non-residential buildings, and ~~December 31, 2016, there were no concentrations~~$25.3 million, or 4%, of total loans ~~related~~ to ~~any single industry.~~assisted living facilities for the elderly. These loans are generally secured by real property and equipment, with repayment expected from operational cash flow. Credit evaluation is based on a review of cash flow coverage of principal, interest payments, and the adequacy of the collateral received.

Allowance for ~~Loan~~Credit Losses

The following ~~tables detail~~table details activity in the allowance for ~~loan~~credit losses by portfolio segment for the three ~~and nine~~ months ended ~~September 30, 2017 and 2016.~~March 31, 2023. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.


(Dollars in thousands)	Beginning Balance		Impact of Adopting ASC 326			Charge-offs				Recoveries		Provisions (Reductions)			Ending Balance
March 31, 2023
Commercial and industrial	$	1,110	$	658		$	—			$	10	$	43		$	1,821
Commercial real estate		2,760		(541	)		—				1		16			2,236
Commercial lessors of buildings		—		974			—				—		(9	)		965
Construction		803		(515	)		—				—		(17	)		271
Consumer mortgage		1,268		(580	)		—				—		5			693
Home equity line of credit		—		201			—				—		(15	)		186
Consumer installment		233		(183	)		(8	)			—		5			47
Consumer indirect		—		91			(31	)			24		4			88
Unallocated		664		(664	)		—		��		—		—			—
	$	6,838	$	(559	)	$	(39	)		$	35	$	32		$	6,307

The increase in the provision for loan losses for the three months ended September 30, 2017 related to commercial loans was primarily due to the increase in historical losses of loans in this category. The decrease in the provision related to commercial real estate loans was due to the decrease in the specific impairment amount related to one loan relationship. The decrease in the provision related to residential real estate loans is due to the decrease of loan delinquencies in this category.

The increase in the provision for loan losses related to commercial loans for the nine months ended September 30, 2017 was due to the increase in the historical loss rate and the increase of special mention loans in this category. The increase in the provision related to commercial real estate loans was due to the increase in nonaccrual loans in this category and the increase of adversely classified loan balances.18

The changes in the provision for loan losses for the three and nine months ended September 30, 2016 related to commercial loans were primarily due to charge-offs of loans in this category as well as an increase in the specific reserve for one commercial relationship. The decrease in the provision related to commercial real estate loans for the nine month period in 2016 was primarily due to a recovery of a prior~~charge-off.~~ ~~The increase in the provision for consumer loans during the three and nine month periods of 2016 relates to charge-offs of loans in this category as well as the increase in loan volume.~~

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 – LOANS(CONTINUED)

~~Summary of~~ Allowance for Loan Losses

(Dollars in thousands)
   Commercial Commercial
Real Estate Residential
Real Estate Construction
& Land
Development    Consumer Unallocated Total
Three months ended September 30, 2017

Beginning balance
   $ 2,362 $ 1,718 $ 1,264 $ 222    $ 182 $ 541 $ 6,289
Provision for loan losses
   881 (88 ) (53 ) 21    (5 ) (476 ) 280
Charge-offs
   (1,138 ) —   —   —      —   (1,138 )
Recoveries
   4 —   —   —      1 5




Net charge-offs
   (1,134 ) —   —   —      1 (1,133 )




Ending balance
   $ 2,109 $ 1,630 $ 1,211 $ 243    $ 178 $ 65 $ 5,436




Nine months ended September 30, 2017

Beginning balance
   $ 2,207 $ 1,264 $ 1,189 $ 178    $ 141 $ 312 $ 5,291
Provision for loan losses
   725 366 14 65    42 (247 ) 965
Charge-offs
   (1,178 ) —   —   —      (7 ) (1,185 )
Recoveries
   355 —   8 —      2 365




Net charge-offs
   (823 ) —   8 —      (5 ) (820 )




Ending balance
   $ 2,109 $ 1,630 $ 1,211 $ 243    $ 178 $ 65 $ 5,436




Three months ended September 30, 2016

Beginning balance
   $ 2,376 $ 1,262 $ 1,095 $ 127    $ 110 $ 186 $ 5,156
Provision for loan losses
   77 63 50 24    74 (124 ) 164
Charge-offs
   (261 ) (38 ) —   —      (47 ) (346 )
Recoveries
   27 —   1 —      —   28




Net charge-offs
   (234 ) (38 ) 1 —      (47 ) (318 )




Ending balance
   $ 2,219 $ 1,287 $ 1,146 $ 151    $ 137 $ 62 $ 5,002




Nine months ended September 30, 2016

Beginning balance
   $ 1,664 $ 1,271 $ 1,086 $ 123    $ 86 $ 432 $ 4,662
Provision for loan losses
   797 (117 ) 57 28    98 (370 ) 493
Charge-offs
   (276 ) (50 ) —   —      (48 ) (374 )
Recoveries
   34 183 3 —      1 221




Net charge-offs
   (242 ) 133 3 —      (47 ) (153 )




Ending balance
   $ 2,219 $ 1,287 $ 1,146 $ 151    $ 137 $ 62 $ 5,002

~~CSB BANCORP, INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~NOTE 3 – LOANS~~~~(CONTINUED)~~

The following ~~table presents the balance~~tables detail activity in the allowance for loan losses ~~and the ending loan balances~~ by portfolio ~~class~~segment for the three months ended March 31, 2022.


(Dollars in thousands)	Commercial			Commercial Real Estate			Residential Real Estate		Construction & Land Development		Consumer			Unallocated			Total
Three Months Ended March 31, 2022
Beginning balance	$	1,240		$	2,838		$	992	$	1,380	$	421		$	747		$	7,618
(Recovery of) provision for loan losses		(65	)		(288	)		46		154		(31	)		(116	)		(300	)
Charge-offs		(10	)		—			—		—		(21	)					(31	)
Recoveries		4			—			1		—		13						18
Net (charge-offs) recoveries		(6	)		—			1		—		(8	)					(13	)
Ending balance	$	1,169		$	2,550		$	1,039	$	1,534	$	382		$	631		$	7,305

Age Analysis of Past-Due Loans Receivable and ~~based on~~Nonperforming Loans

The performance and credit quality of the ~~impairment method~~loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of ~~September 30, 2017 and December 31, 2016:~~

(Dollars in thousands)
   Commercial    Commercial
Real Estate    Residential
Real Estate    Construction
& Land
Development    Consumer    Unallocated    Total
September 30, 2017

Allowance for loan losses:

Individually evaluated for impairment
   $ 5    $ 20    $ 24    $ —      $ —      $ —      $ 49
Collectively evaluated for impairment
   2,104    1,610    1,187    243    178    65    5,387














Total ending allowance balance
   $ 2,109    $ 1,630    $ 1,211    $ 243    $ 178    $ 65    $ 5,436














Loans:

Loans individually evaluated for impairment
   $ 1,241    $ 3,703    $ 1,486    $ —      $ —         $ 6,430
Loans collectively evaluated for impairment
   136,218    173,885    151,795    23,915    16,686       502,499












Total ending loans balance
   $ 137,459    $ 177,588    $ 153,281    $ 23,915    $ 16,686       $ 508,929












December 31, 2016

Allowance for loan losses:

Individually evaluated for impairment
   $ 705    $ —      $ 24    $ —      $ —      $ —      $ 729
Collectively evaluated for impairment
   1,502    1,264    1,165    178    141    312    4,562














Total ending allowance balance
   $ 2,207    $ 1,264    $ 1,189    $ 178    $ 141    $ 312    $ 5,291














Loans:

Loans individually evaluated for impairment
   $ 5,028    $ 621    $ 1,507    $ —      $ —         $ 7,156
Loans collectively evaluated for impairment
   129,240    158,854    142,982    23,428    13,308       467,812












Total ending loans balance
   $ 134,268    $ 159,475    $ 144,489    $ 23,428    $ 13,308       $ 474,968

~~CSB BANCORP, INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~NOTE 3 – LOANS~~~~(CONTINUED)~~

~~The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2017 and December 31, 2016:~~

(Dollars in thousands)
   Unpaid
Principal
Balance    Recorded
Investment
with no
Allowance    Recorded
Investment
with
Allowance    Total
Recorded
Investment    Related
Allowance
September 30, 2017

Commercial
   $ 2,868    $ 1,238    $ 5    $ 1,243    $ 5
Commercial real estate
   3,901    3,653    51    3,704    20
Residential real estate
   1,667    1,095    392    1,487    24










Total impaired loans
   $ 8,436    $ 5,986    $ 448    $ 6,434    $ 49










December 31, 2016

Commercial
   $ 5,476    $ 1,690    $ 3,354    $ 5,044    $ 705
Commercial real estate
   796    600    21    621    —
Residential real estate
   1,681    1,036    472    1,508    24










Total impaired loans
   $ 7,953    $ 3,326    $ 3,847    $ 7,173    $ 729

time a recorded payment is past due. The following table presents the ~~average recorded investment in impaired~~classes of the loan portfolio summarized by the past-due status.


(Dollars in thousands)	Current		30-60 Days Past Due		61-89 Days Past Due		90 Days + Past Due		Total Past Due		Total Loans
March 31, 2023
Commercial and industrial	$	137,318	$	51	$	—	$	—	$	51	$	137,369
Commercial real estate		167,878		—		—		—		—		167,878
Commercial lessors of buildings		81,917		—		—		—		—		81,917
Construction		43,467		31		—		—		31		43,498
Consumer mortgage		157,079		237		—		—		237		157,316
Home equity line of credit		43,074		162		87		—		249		43,323
Consumer installment		9,868		83		—		—		83		9,951
Consumer indirect		6,374		—		—		—		—		6,374
Total Loans	$	646,975	$	564	$	87	$	—	$	651	$	647,626

The following table presents the amortized cost basis of loans on nonaccrual status and ~~related~~loans past due over 90 days still accruing interest ~~income recognized for the periods indicated.~~as of March 31, 2023:


(Dollars in thousands)	Nonaccrual with no ACL		Nonaccrual with ACL		Total Nonaccrual		Loans Past Due Over 90 Days Still Accruing		Total Nonperforming
March 31, 2023
Commercial and industrial	$	2	$	—	$	2	$	—	$	2
Commercial real estate		87		—		87		—		87
Commercial lessors of buildings		—		—		—		—		—
Construction		—		—		—		—		—
Consumer mortgage		73		—		73		—		73
Home equity line of credit		—		—		—		—		—
Consumer installment		56		—		56		—		56
Consumer indirect		—		—		—		—		—
Total Loans	$	218	$	—	$	218	$	—	$	218

   Three months
ended September 30,    Nine months
ended September 30,
(Dollars in thousands)    2017    2016    2017    2016
Average recorded investment:

Commercial
   $ 3,084    $ 6,389    $ 3,376    $ 6,393
Commercial real estate
   4,712    660    2,934    799
Residential real estate
   1,370    1,460    1,471    1,504








Average recorded investment in impaired loans
   $ 9,166    $ 8,509    $ 7,781    $ 8,696








Interest income recognized:

Commercial
   $ 10    $ 54    $ 41    $ 176
Commercial real estate
   7    3    9    9
Residential real estate
   13    15    43    44








Interest income recognized on a cash basis on impaired loans
   $ 30    $ 72    $ 93    $ 229

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 – LOANS(CONTINUED)

The following table presents the aging of past due loans and nonaccrual loans as of ~~September 30, 2017 and~~ December 31, ~~2016 by class of loans:~~2022:


			Accruing Loans
(Dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days + Past Due		Non- Accrual		Total Past Due and Non- Accrual		Total Loans
December 31, 2022
Commercial	$	129,270	$	70	$	3	$	—	$	—	$	73	$	129,343
Commercial real estate		231,693		—		—		—		92		92		231,785
Residential real estate		193,794		95		137		—		99		331		194,125
Construction & land development		55,286		32		—		—		—		32		55,318
Consumer		16,091		103		128		—		65		296		16,387
Total Loans	$	626,134	$	300	$	268	$	—	$	256	$	824	$	626,958

(Dollars in thousands)
   Current    30 - 59
Days Past
Due    60 - 89
Days Past
Due    90 Days +
Past Due    Non-
Accrual    Total Past
Due and
Non-
Accrual    Total Loans
September 30, 2017

Commercial
   $ 136,544    $ 28    $ —      $ 144    $ 743    $ 915    $ 137,459
Commercial real estate
   173,989    160    —      40    3,399    3,599    177,588
Residential real estate
   151,684    914    108    68    507    1,597    153,281
Construction & land development
   23,915    —      —      —      —      —      23,915
Consumer
   16,561    87    9    1    28    125    16,686














Total Loans
   $ 502,693    $ 1,189    $ 117    $ 253    $ 4,677    $ 6,236    $ 508,929














December 31, 2016

Commercial
   $ 133,630    $ 151    $ 62    $ —      $ 425    $ 638    $ 134,268
Commercial real estate
   158,504    435    —      39    497    971    159,475
Residential real estate
   142,926    816    61    196    490    1,563    144,489
Construction & land development
   23,428    —      —      —      —      —      23,428
Consumer
   13,234    21    16    —      37    74    13,308














Total Loans
   $ 471,722    $ 1,423    $ 139    $ 235    $ 1,449    $ 3,246    $ 474,968

~~CSB BANCORP, INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~NOTE 3 – LOANS~~~~(CONTINUED)~~

~~Troubled Debt Restructurings~~

All troubled debt restructurings (“TDR’s) are individually evaluated for impairment and a related allowance is recorded, as needed. Loans whose terms have been modified as TDR’s totaled $3.1 million as of September 30, 2017, and $6.4 million as of December 31, 2016, with $24 thousand and $711 thousand of specific reserves allocated to those loans, respectively. At September 30, 2017, $2.0 million of the loans classified as TDR’s were performing in accordance with their modified terms. Of the remaining $1.1 million, all were in nonaccrual of interest status.

The Company held no foreclosed real estate as of September 30, 2017, or December 31, 2016. Consumer mortgage loans in the process of foreclosure were $154 thousand at September 30, 2017 and $448 thousand at December 31, 2016.

~~The following table presents loans restructured during the three and nine month periods ended September 30, 2017 and 2016.~~

(Dollars in thousands)
   Number of
loans
restructured    Pre-
Modification
Recorded
Investment    Post-
Modification
Recorded
Investment
For the three months ended September 30, 2017

Residential Real Estate
   1    $ 38    $ 38






Total Restructured Loans
   1    $ 38    $ 38






For the nine months ended September 30, 2017

Commercial Real Estate
   4    $ 288    $ 288
Residential Real Estate
   2    52    52






Total Restructured Loans
   6    $ 340    $ 340






For the three months ended September 30, 2016

Residential Real Estate
   —      $ —      $ —






Total Restructured Loans
   —      $ —      $ —






For the nine months ended September 30, 2016

Residential Real Estate
   3    $ 327    $ 327






Total Restructured Loans
   3    $ 327    $ 327

The restructured loans were modified by changing the monthly payment to interest only. No principal reductions were made. There was one commercial loan in the amount of $3.3 million that was restructured in the fourth quarter of 2016 that has defaulted in 2017. None of the loans that were restructured in 2015 have subsequently defaulted in the nine month period ended September 30, 2016.

~~CSB BANCORP, INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~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 all commercial loans before origination and an annual review of those with an outstanding ~~balance~~commitment greater than ~~$300~~$500 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~~(Cash Secured, Exceptional, Acceptable, Monitor, 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~~Assets assigned a Special Mention grade are not considered classified ~~as special mention have material~~assets but are considered criticized. These assets exhibit potential weaknesses that, deserve management’s close attention. If left uncorrected, ~~these~~those potential weaknesses may result in deterioration of the repayment prospects for the ~~loan~~asset or in the Bank’s credit position at some future date. Loans in this rating warrant special attention but have not yet reached the point of concern for loss. These assets have deteriorated sufficiently to the point they would have difficulty refinancing elsewhere. Similarly, purchasers of the business would not be eligible for bank financing unless they represent a significantly stronger credit risk.

Substandard. Loans classified as substandard are inadequately protected by the current ~~net~~sound 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 institution 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~~known facts, conditions, and values, highly questionable and improbable.

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 – LOANS (CONTINUED)

Loans not meeting the criteria above that are analyzed individually as part of the ~~above described~~above-described process are considered to be pass rated ~~loans. Loans listed as not rated are either less than $300 thousand or are included in groups of homogeneous~~ loans. Based on the most recent analysis performed, the ~~risk category of~~following tables present the recorded investment in non-homogeneous loans by ~~class is as follows~~internal risk rating system as of ~~September 30, 2017~~March 31, 2023 and December 31, ~~2016:~~2022:


	Term Loans Amortized Costs Basis by Origination Year													Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term
(Dollars in thousands)	2023		2022		2021		2020		2019			Prior						Total
March 31, 2023
Commercial and industrial:
Pass	$	6,532	$	33,855	$	17,116	$	7,745	$	5,613		$	11,097	$	45,792	$	—	$	127,750
Special mention		—		21		—		—		22			—		244		—		287
Substandard		—		498		507		805		4			614		6,904		—		9,332
Doubtful		—		—		—		—		—			—		—		—		—
Total	$	6,532	$	34,374	$	17,623	$	8,550	$	5,639		$	11,711	$	52,940	$	—	$	137,369
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—		$	—	$	—	$	—	$	—
Commercial real estate:
Pass	$	8,059	$	27,184	$	48,057	$	13,725	$	20,714		$	36,117	$	444	$	—	$	154,300
Special Mention		—		—		—		409		6,630			—		—		—		7,039
Substandard		—		—		933		642		479			4,485		—		—		6,539
Doubtful		—		—		—		—		—			—		—		—		—
Total	$	8,059	$	27,184	$	48,990	$	14,776	$	27,823		$	40,602	$	444	$	—	$	167,878
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	��	$	—	$	—	$	—	$	—
Commercial lessors of buildings:
Pass	$	483	$	26,745	$	26,775	$	8,383	$	8,117		$	10,856	$	183	$	—	$	81,542
Special Mention		—		—		—		—		—			—		—		—		—
Substandard		—		—		—		375		—			—		—		—		375
Doubtful		—		—		—		—		—			—		—		—		—
Total	$	483	$	26,745	$	26,775	$	8,758	$	8,117		$	10,856	$	183	$	—	$	81,917
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—		$	—	$	—	$	—	$	—
Construction:
Pass	$	2,106	$	27,238	$	4,250	$	961	$	403		$	325	$	481	$	—	$	35,764
Special Mention		—		—		—		—		—			—		—		—		—
Substandard		—		—		—		—		—			—		—		—		—
Doubtful		—		—		—		—		—			—		—		—		—
Total	$	2,106	$	27,238	$	4,250	$	961	$	403		$	325	$	481	$	—	$	35,764
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—		$	—	$	—	$	—	$	—
Total
Pass	$	17,180	$	115,022	$	96,198	$	30,814	$	34,847		$	58,395	$	46,900	$	—	$	399,356
Special Mention		—		21		—		409		6,652			—		244		—		7,326
Substandard		—		498		1,440		1,822		483			5,099		6,904		—		16,246
Doubtful		—		—		—		—		—			—		—		—		—
Total	$	17,180	$	115,541	$	97,638	$	33,045	$	41,982		$	63,494	$	54,048	$	—	$	422,928


(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
December 31, 2022
Commercial	$	119,353	$	282	$	7,927	$	—	$	1,781	$	129,343
Commercial real estate		220,414		485		8,352		—		2,534		231,785
Construction & land development		40,640		6,655		—		—		8,023		55,318
Total	$	380,407	$	7,422	$	16,279	$	—	$	12,338	$	416,446

(Dollars in thousands)
   Pass    Special
Mention    Substandard    Doubtful    Not Rated    Total
September 30, 2017

Commercial
   $ 115,301    $ 16,167    $ 5,130    $ —      $ 861    $ 137,459
Commercial real estate
   160,677    9,933    6,744    —      234    177,588
Residential real estate
   208    —      183    —      152,890    153,281
Construction & land development
   18,171    1,410    —      —      4,334    23,915
Consumer
   —      —      —      —      16,686    16,686












Total
   $ 294,357    $ 27,510    $ 12,057    $ —      $ 175,005    $ 508,929












December 31, 2016

Commercial
   $ 116,739    $ 6,874    $ 9,704    $ —      $ 951    $ 134,268
Commercial real estate
   149,630    4,168    4,766    —      911    159,475
Residential real estate
   216    —      175    —      144,098    144,489
Construction & land development
   17,183    981    504    —      4,760    23,428
Consumer
   —      —      —      —      13,308    13,308












Total
   $ 283,768    $ 12,023    $ 15,149    $ —      $ 164,028    $ 474,968

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 – LOANS(CONTINUED)

The ~~following table presents loans that are not rated~~Company monitors the credit risk profile by ~~class of loans as of September 30, 2017~~payment activity for residential and ~~December 31, 2016. Nonperforming loans include loans~~consumer loan classes. Loans past due 90 days or more and loans on nonaccrual status are considered nonperforming. The following table presents the amortized cost in residential consumer loans based on payment activity:


	Term Loans Amortized Costs Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior						Total
March 31, 2023
Consumer mortgage:
Performing	$	6,702	$	31,912	$	39,547	$	35,326	$	9,748	$	34,008	$	—	$	—	$	157,243
Nonperforming		—		—		—		—		—		73		—		—		73
Total	$	6,702	$	31,912	$	39,547	$	35,326	$	9,748	$	34,081	$	—	$	—	$	157,316
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction
Performing	$	614	$	5,257	$	282	$	1,320	$	126	$	135	$	—	$	—	$	7,734
Nonperforming		—		—		—		—		—		—		—		—		—
Total	$	614	$	5,257	$	282	$	1,320	$	126	$	135	$	—	$	—	$	7,734
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home equity line of credit:
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	43,269	$	54	$	43,323
Nonperforming		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	43,269	$	54	$	43,323
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer installment:
Performing	$	1,632	$	4,859	$	1,812	$	929	$	353	$	303	$	63	$	—	$	9,951
Nonperforming		—		—		—		—		—		—		—		—		—
Total	$	1,632	$	4,859	$	1,812	$	929	$	353	$	303	$	63	$	—	$	9,951
Current period gross charge-offs	$	—	$	3	$	1	$	2	$	33	$	—	$	—	$	—	$	39
Consumer indirect:
Performing	$	177	$	1,322	$	766	$	647	$	759	$	2,647	$	—	$	—	$	6,318
Nonperforming		—		—		7		—		—		49		—		—		56
Total	$	177	$	1,322	$	773	$	647	$	759	$	2,696	$	—	$	—	$	6,374
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	31	$	—	$	—	$	31
Total
Performing	$	8,511	$	38,093	$	42,125	$	36,902	$	10,860	$	36,958	$	43,332	$	54	$	216,835
Nonperforming		—		—		7		—		—		122		—		—		129
Total	$	8,511	$	38,093	$	42,132	$	36,902	$	10,860	$	37,080	$	43,332	$	54	$	216,964

Modifications to Borrowers Experiencing Financial Difficulty

Occasionally, the Bank modifies loans to borrowers in financial distress by providing – principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

In some cases, the Bank may provide multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted.

There were no modifications of loans to borrowers in financial distress completed during the quarter ended March 31, 2023.

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 – LOANS (CONTINUED)

Impaired Loans

The following impaired loan information relates to required disclosures under the previous incurred loan loss methodology and are only presented with prior period information.

The following table presents the balance in the allowance for loan losses and the ending loan balances by portfolio class, based on the impairment method as of December 31, 2022:


(Dollars in thousands)	Commercial		Commercial Real Estate		Residential Real Estate		Construction		Consumer		Unallocated		Total
December 31, 2022
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	4	$	—	$	4
Collectively evaluated for impairment		1,110		2,760		1,268		803		229		664		6,834
Total ending allowance balance	$	1,110	$	2,760	$	1,268	$	803	$	233	$	664	$	6,838
Loans:
Loans individually evaluated for impairment	$	123	$	113	$	677	$	—	$	123			$	1,036
Loans collectively evaluated for impairment		129,220		231,672		193,448		55,318		16,264				625,922
Total ending loans balance	$	129,343	$	231,785	$	194,125	$	55,318	$	16,387			$	626,958

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2022:


(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total recorded investment1		Related Allowance
December 31, 2022
Commercial	$	123	$	124	$	—	$	124	$	—
Commercial real estate		117		92		20		112		—
Residential real estate		733		166		518		683		—
Construction & land development		—		—		—		—		—
Consumer		127		6		121		127		4
Total impaired loans	$	1,101	$	387	$	659	$	1,046	$	4

1Includes principal, accrued interest, ~~status.~~ unearned fees, and origination costs

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands)
   Performing    Non-Performing    Total
September 30, 2017

Commercial
   $ 861    $ —      $ 861
Commercial real estate
   234    —      234
Residential real estate
   152,315    575    152,890
Construction & land development
   4,334    —      4,334
Consumer
   16,657    29    16,686






Total
   $ 174,401    $ 604    $ 175,005






December 31, 2016

Commercial
   $ 951    $ —      $ 951
Commercial real estate
   911    —      911
Residential real estate
   143,440    658    144,098
Construction & land development
   4,760    —      4,760
Consumer
   13,271    37    13,308






Total
   $ 163,333    $ 695    $ 164,028

(Unaudited)

NOTE 3 – LOANS (CONTINUED)

The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated.


	Three Months Ended March 31,
(Dollars in thousands)	2022
Average recorded investment:
Commercial	$	264
Commercial real estate		222
Residential real estate		849
Construction & land development		329
Consumer		135
Average recorded investment in impaired loans	$	1,799
Interest income recognized:
Commercial	$	1
Commercial real estate		2
Residential real estate		8
Construction & land development		—
Consumer		2
Interest income recognized on a cash basis on impaired loans	$	13

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following management’s discussion and analysis focuses on the consolidated financial condition of the Company ~~at September 30, 2017~~on March 31, 2023 as compared to December 31, ~~2016,~~2022, and the consolidated results of operations for the three ~~and nine month periods~~months ended ~~September 30, 2017~~March 31, 2023 compared to the same ~~periods~~period in ~~2016.~~2022. The purpose of this discussion is to provide the reader with a more thorough understanding of the Consolidated Financial Statements. This discussion should be read in conjunction with the interim condensed Consolidated Financial Statements and related footnotes contained in Part I, Item 1 of this Quarterly Report.

Certain statements contained in this Quarterly Report are not historical facts but rather are forward-looking statements that are subject to certain risks and uncertainties. When used herein, the terms “anticipates”, “plans”, “expects”, “believes”, and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company’s actual results, performance or achievements may materially differ from those expressed or implied in the forward-looking statements. Risks and uncertainties that could cause or contribute to such material differences include, but are not limited to, general economic conditions, interest rate environment, competitive conditions in the financial services industry, changes in law, governmental policies and regulations, and rapidly changing technology affecting financial services. Other factors not currently anticipated may also materially and adversely affect the Company’s results of operations, cash flows, and financial position. There can be no assurance that future results will meet expectations. While the Company believes that the forward-looking statements in this report are reasonable, the reader should not place undue reliance on any forward-looking statement.

The Company does not undertake, and specifically disclaims any obligation, to publicly revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as may be required by applicable law.

Total assets ~~were $711 million~~decreased to $1.14 billion at ~~September 30, 2017 as~~March 31, 2023 compared to ~~$670 million at~~$1.16 billion December 31, ~~2016.~~2022. During the ~~nine month period~~three months ended ~~September 30, 2017,~~March 31, 2023, securities decreased $7 million, net loans increased ~~$34 million. Cash,~~$21 million, and cash and cash equivalents decreased $31 million. Deposits and ~~securities increased $5~~short-term borrowings decreased $19 million. ~~On the liability side, deposits and repurchase agreements increased by $27 million.~~

Net loans increased ~~$34~~$21 million, or 7%3%, ~~during the nine months ended September 30, 2017. The increase occurred~~ as ~~demand for both business~~construction loans decreased $11 million, or 20%, and ~~consumer~~residential real estate loans ~~within the bank’s markets continued. The bank has added lending~~increased $8 million, or 3%, from December 31, 2022. Commercial and ~~operations staff to accommodate the increase in demand. Commercial loans including~~ commercial real estate loans increased ~~$21~~$25 million ~~or 7%, while construction and land development loans increased $487 thousand, or 2%. Residential real estate loans increased $9 million, or 6%, and consumer loans increased $3 million, or 25% from~~compared to December 31, ~~2016. Home~~2022. Consumer refinance activity slowed significantly on mortgage loans, home purchase activity ~~has increased~~remained stable despite limited inventory, and ~~consumers continued to refinance their mortgage loans for lower long-term fixed rates.~~ home equity line balances decreased by $1 million.Residential mortgage loan originations for the ~~nine~~three months ended ~~September 30, 2017 and 2016~~March 31, 2023 totaled $11 million, a decrease from $17 million in originations during the three months ended March 31, 2022. As interest rates continued to rise in 2023, more variable rate residential mortgage loans were ~~$44 million and $48 million, respectively.~~originated for the portfolio. Originations sold into the secondary market were ~~$7 million~~$52 thousand and $6$3 million, respectively during the ~~nine month periods~~three months ended ~~September 30, 2017~~March 31, 2023 and ~~September 30, 2016.~~March 31, 2022. The Bank originates and sells primarily ~~fixed-rate thirty year~~fixed rate thirty-year mortgages into the secondary market.

The allowance for ~~loan~~credit losses ~~as a percentage~~decreased $1 million from the year ago quarter to $6.3 million. The Company adopted CECL on January 1, 2023. Net charge-offs were $4 thousand, or an annualized 0.00% of average loans, in the current three-month period compared to net charge-offs of $13 thousand, or 0.01% of average loans in the year-ago three-month period. At March 31, 2023, the allowance for credit losses to total loans was 1.07% at September 30, 2017 as compared to 1.11% at December 31, 2016. Outstanding loan balances increased 7% to $509 million at September 30, 2017. A provision of $965 thousand and net charge-offs of $820 thousand, increased0.97%. We believe the allowance ~~for~~level is appropriate given the low level of problem loans and composition of the overall loan ~~losses to $5.4 million at September 30, 2017.~~

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

~~Nonaccrual~~Nonperforming loans ~~increased during the first nine months~~decreased $38 thousand to $218 thousand, or 0.03%, of ~~2017.~~total loans from $256 thousand, or 0.04% of total loans, on December 31, 2022. For the ~~nine~~three months ~~ending September 30, 2017~~ended March 31, 2023, $2 thousand in loans ~~totaling $6.1 million~~ were placed on nonaccrual status, ~~there~~$38 thousand in paydowns were ~~$1.0 million charge-downs recognized,~~received, and ~~pay downs of $1.8 million~~$2 thousand in personal loans were ~~received. The increase in nonaccrual loans was primarily~~charged-off due to ~~two lending relationships comprised of several loans. Management continues to work through the resolution of the two credit facilities.~~non-payment.

The ratio of gross loans to deposits was ~~89.1%~~64.3% at ~~September 30, 2017,~~March 31, 2023, compared to ~~87.9%~~61.3% at December 31, ~~2016.~~2022.

The Company has no exposure to government-sponsored enterprise preferred stocks, collateralized debt obligations, or trust preferred securities. Management has considered industry analyst reports, sector credit reports, and the volatility within the bond market in concluding that the gross unrealized losses of $1$43.5 million within the available-for-sale and held-to-maturity portfolios as of ~~September 30, 2017, were~~March 31, 2023, was primarily the result of ~~customary and expected fluctuations in~~current market yields compared to the ~~bond market~~yields at the time the investments were purchased by the Company and not ~~necessarily the expected cash flows of the individual securities.~~due to credit quality. As a result, all embedded security ~~impairments~~losses on ~~September 30, 2017,~~March 31, 2023, are considered temporary and no impairment loss relating to these securities has been recognized.

The effective duration of total debt securities was 4.25 years at March 31, 2023 as compared to 4.36 years at December 31, 2022. If interest rates declined 100 basis points, the effective duration was estimated to fall to 3.71 years at March 31, 2023 and 3.84 years at December 31, 2022. If interest rates rose 100 basis points the effective duration would be expected to increase to 4.74 years at March 31, 2023 and December 31, 2022.

Deposits ~~increased $31~~decreased $16 million, or 6%2%, from December 31, ~~2016~~2022 with ~~noninterest bearing~~noninterest-bearing deposits decreasing ~~$261 thousand~~approximately $21 million, or 6%, and interest-bearing deposit accounts increasing ~~$31 million.~~approximately $5 million, or 1%. Total deposits as of ~~September 30, 2017~~March 31, 2023 are ~~$49 million~~$1.01 billion, or 1%, greater than ~~September 30, 2016~~March 31, 2022 deposit balances. On a year over year comparison, ~~increases~~decreases were recognized in noninterest-bearing demand deposits ~~interest-bearing~~of $6 million and savings of $8 million. Increases were recognized in interest bearing demand ~~savings, and~~of $9 million, money market ~~savings accounts.~~accounts of $10 million, and time deposits of $9 million. Deposit growth has normalized following the Bank’s customers increasing deposits through stimulus payments and cash conservation as a result of the COVID-19 pandemic.

Short-term borrowings consisting of overnight repurchase agreements with retail customers decreased $4$3 million, or 8%, to ~~$45~~$30 million at ~~September 30, 2017~~March 31, 2023 as compared to December 31, ~~2016~~2022 and other borrowings ~~increased $9 million~~decreased $67 thousand as the Company ~~obtained a $10 million long-term advance and~~ repaid FHLB ~~advances with required monthly amortization.~~advances.

Total shareholders’ equity amounted to ~~$70~~$99 million, or ~~9.8%~~8.7%, of total assets at ~~September 30, 2017, compared to $65~~March 31, 2023, an increase of $3 million, or ~~9.8%~~3%, ~~of total assets, at~~from $96 million December 31, ~~2016.~~2022. The increase in shareholders’ equity during the ~~nine~~three months ~~ending September 30, 2017~~ended March 31, 2023 was due to net income of $5$3.9 million, ~~and~~accumulated other comprehensive ~~income~~loss (“AOCL”) change of ~~$802 thousand, partially offset by~~$1.1 million, less cash dividends ~~declared~~ of ~~$2 million.~~$964 thousand. A decline of U.S. Treasury rates in first quarter 2023 caused the AOCI to increase as AFS securities are marked to fair market value. As interest rates decline, the fair value of AFS fixed-rate securities rise with a corresponding net of tax decline recorded in the AOCL portion of equity. This remaining unrealized loss in securities is temporary and is adjusted monthly for additional interest rate fluctuations, principal paydowns, calls, and maturities. The Company and the Bank met all regulatory capital requirements at ~~September 30, 2017.~~March 31, 2023.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

For the quarters ended ~~September 30, 2017~~March 31, 2023 and ~~2016,~~2022, the Company recorded net income of ~~$1.9~~$3.9 million and ~~$1.7~~$2.7 million and ~~$.68~~$1.46 and ~~$.61~~$0.99 per share, respectively. The ~~$172 thousand~~$1.2 million increase in net income for the ~~quarter~~period was primarily the result of a ~~$707 thousand~~$2.1 million increase in net interest ~~income. The increase was partially~~income, offset by an increase in ~~other~~ noninterest expenses of ~~$292~~$251 thousand, ~~an increase~~and a decrease of $14 thousand in ~~the~~noninterest income. The recovery of provision for ~~loans~~credit losses ~~of $116~~was $31 thousand in 2023 compared to $300 thousand for the three-month period in 2022, and ~~an increase in~~ the federal income tax provision ~~of $86~~increased $333 thousand. Return on average assets and return on average equity were ~~1.05%~~1.39% and ~~10.62%~~16.39%, respectively, for the ~~three month~~three-month period of ~~2017,~~2023, compared to ~~1.03%~~0.96% and ~~10.29%~~11.26%, respectively for the same quarter in ~~2016.~~2022.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

4 Interest income is shown on a fully tax-equivalent basis, which is a Non-GAAP measure and ~~Net Interest Margin Analysis~~is reconciled to the GAAP measure at the bottom of the table.

Interest income for the quarter ended ~~September 30, 2017,~~March 31, 2023, was ~~$6.8~~$10.6 million representing a ~~$903 thousand~~$3.4 million increase, or ~~a 15% improvement,~~47%, compared to the same period in ~~2016.~~ 2022.This increase was primarily due to ~~average~~the additional increased rates earned on interest-earning deposits, loans, and taxable securities partially offset by the volume decrease in interest-earning deposits in the comparable periods. Average interest-earning deposit rates increased 445 bps while loan ~~volume increasing $48 million~~rates increased 88 basis points, and taxable securities interest rates rose 62 bps for the quarter ended ~~September 30, 2017~~March 31, 2023 as compared to the ~~third quarter 2016.~~same period in 2022. The ~~volume of taxable securities declined $16 million on a~~Federal Reserve raised managed interest rates 8 times and 450 bps during the 1 year ~~over year comparison, resulting in a decrease in interest income of $95 thousand from the volume reduction.~~period. Interest expense for the quarter ended ~~September 30, 2017~~March 31, 2023 was ~~$562 thousand,~~$1.7 million, an increase of ~~$196 thousand,~~$1.3 million, or ~~54%~~341%, from the same ~~period~~quarter in ~~2016.~~2022. The increase in interest expense occurred primarily due to the increase in interest rates on savings and interest-bearing demand deposits as well as an increase in ~~rate on all interest-bearing liabilities~~volume of savings and time accounts for the quarter ended ~~September 30, 2017.~~March 31, 2023.

For the quarter ended ~~September 30, 2017,~~March 31, 2023, with improving credit quality and minimal loan charge-offs, the ~~provision for loan losses was $280~~bank recognized net charge-offs of $4 thousand, compared to ~~a provision of $164~~$13 thousand net charge-offs for the same quarter in ~~2016. For more discussion see Results of Operations for the nine months ended September 30.~~2022. The provision for credit losses for loans for the current quarter of $32 thousand, compared against a recovery of $300 thousand in the first quarter 2022 reflects a stabilization of credit quality in 2023. The company recovered $63 thousand provision for off-balance credit exposure in 2023 compared to a $13 thousand provision for unfunded loan losses in the first quarter of 2022. This decrease results from a decline primarily in construction loans in 2023 compared to 2022. Economic indicators reflect a leveling off of in residential real estate prices and low unemployment. The provision for credit losses is determined based on management’s calculation of the adequacy of the allowance for ~~loan~~credit losses, which includes provisions for classified loans as well as for the remainder of the portfolio based on historical data, including past charge-offs and current economic trends.

Noninterest income for the quarter ended September 30, 2017, was $1.1 million, a decrease of $41 thousand, or 4%, compared to the same quarter in 2016. Service charges on deposit accounts decreased $14 thousand, or 5%, compared to the same quarter in 2016 primarily from decreases in overdraft fees. The gain on the sale of mortgage loans to the secondary market increased to $94 thousand for the quarter ending September 30, 2017, from $71 thousand in the same quarter in 2016. Debit card interchange income increased $28 thousand, or 10%, with greater fee income in the third quarter of 2017 Fees from trust and brokerage services decreased $91 thousand to $122 thousand for the third quarter 2017 as compared to the same quarter in 2016 due to the realignment of both divisions, the use of representative on demand in the brokerage division in 2017 with decreased commissions, as well as a decrease of assets under management.32

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Noninterest income for the quarter ended March 31, 2023, was $1.6 million, a decrease of $14 thousand, or 1%, compared to the same quarter in 2022.The gain on the sale of mortgage loans into the secondary market decreased by $115 thousand, or 98%, for the quarter ended March 31, 2023 as fewer loans were sold into the secondary market due to decreasing demand for mortgage refinancing as interest rates increased and inventories of homes available for sale declined. Fees from trust and brokerage services amounted to $258 thousand for the first quarter 2023, a decrease of $6 thousand, or 2%, as compared to the same quarter in 2022. Service charges on deposit accounts increased $27 thousand, or 10%, compared to the same quarter in 2022, primarily from increased customer overdraft fees. Debit card interchange income increased $26 thousand, or 5%, with greater fees generated from usage in the first quarter 2023. Credit card fee income increased $22 thousand, or 14%, as improvements to the card program have resulted in increased customer usage. Earnings on bank owned life insurance increased $3 thousand, or 2%, for the first quarter 2023.

Noninterest expenses for the quarter ended ~~September 30, 2017~~March 31, 2023 increased ~~$292~~$251 thousand, or 7%5%, compared to the ~~third~~first quarter ~~of 2016.~~2022. Salaries and employee benefits increased ~~$212~~$139 thousand, or 9%4%, a result of increases ~~in employees,~~to base salary ~~medical,~~ and ~~other benefits. Debit card expenses~~benefits compared to first quarter 2022. Occupancy and equipment expense increased ~~$19~~$3 thousand, or ~~16%~~1%, ~~compared to~~in 2023 over the ~~third~~first quarter ~~2016~~2022, primarily due to ~~the replacement of all outstanding debit cards with EMV chip cards.~~small equipment purchases. Software expense ~~rose $16~~increased $66 thousand due to additional software purchases over first quarter ~~over quarter with additional investment. Occupancy expense increased $7 thousand in 2017 over the third quarter of 2016.~~2022 Professional and director fees increased ~~$36~~$45 thousand, or 17%, for the quarter ended ~~September 30, 2017~~March 31, 2023 as compared to the ~~third~~first quarter ~~2016. The increase resulted from~~2022, primarily due to an increase in ~~internal~~ audit ~~fees~~ and ~~legal fees for loan collections, partially offset by a decrease in other~~ outside ~~service~~consulting fees.

Marketing and public relations expense increased $12 thousand, or 11%. Telephone and data line expense decreased $21 thousand, or 33%, with renegotiated contracts. Debit card expense decreased $18 thousand or 11%. Federal income tax expense increased ~~$86~~$333 thousand, or ~~12%~~52%, for the quarter ended ~~September 30, 2017~~March 31, 2023 as compared to the ~~third~~first quarter ~~of 2016.~~2022. The provision for income taxes was ~~$826~~$971 thousand (effective rate of ~~30.7%~~19.8%) for the quarter ended ~~September 30, 2017,~~March 31, 2023, compared to ~~$740~~$638 thousand (effective rate of ~~30.4%~~19.1%) for the same quarter ended ~~2016.~~2022.

Net income for the nine months ended September 30, 2017, was $5.3 million or $1.94 per share, as compared to $4.8 million or $1.74 per share during the same period in 2016. Return on average assets and return on average equity were 1.04% and 10.44%, respectively, for the nine month period of 2017, compared to 0.99% and 9.99%, respectively for 2016.

Comparative net income increased as total interest and dividend income increased $2 million or 12% for the nine month period in 2017 as compared to 2016. The provision for loan losses increased $472 thousand or 96% during the same comparative period. Noninterest income increased $36 thousand to $3.2 million, or 1%, for the nine month period ending in 2017 as compared to 2016. Noninterest expense increased to $12.6 million for the nine months ended September 30, 2017, an increase of $575 thousand or 5% from the same period last year.

~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

Interest income on loans increased $2 million, or 15%, for the nine months ended September 30, 2017, as compared to the same period in 2016. This increase was primarily due to an average loan volume increase of $48 million for the comparable nine month periods. Interest income on securities decreased $209 thousand, or 8%, as the average volume of securities decreased $19 million, for the comparable nine month periods. Interest income on fed funds sold and interest bearing deposits increased $107 thousand for the nine months ended September 30, 2017 as the yield on fed funds sold and due from banks interest bearing balances increased 0.48%, compared to the same period in 2016.

Interest expense increased $300 thousand to $1.4 million for the nine months ended September 30, 2017, compared to the same period in 2016. Interest expense on deposits increased $184 thousand, or 24%, from the same period as last year. Interest expense on short-term and other borrowings increased $116 thousand, or 33%. The increase in interest expense has been caused by higher interest rates being paid on all deposits and borrowings. Additionally, during the comparable nine month periods, the Company grew non-interest bearing deposits by $7 million in 2017. Time deposits continue to renew at higher interest rates, and some depositors have moved monies to savings instruments anticipating higher interest rates. Competition for deposits appears to be increasing from a year ago with larger money center banks and community banks increasing rates offered for money market savings accounts. The net interest margin increased by 18 basis points for the nine month period ended September 30, 2017, to 3.79%, from 3.61% for the same period in 2016. This margin increase is primarily the result of increased loan volume.

~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

The provision for loan losses was $965 thousand during the nine months of 2017, compared to $493 thousand in the same nine month period of 2016. The increase in the provision for loan losses from a year ago reflects an increase in nonperforming loans. Early stage loan delinquency has decreased and net loan losses were reflected in both nine month periods. The provision for loan losses is determined based on management’s calculation of the adequacy of the allowance for loan losses, which includes provisions for classified loans as well as for the remainder of the portfolio based on historical data including past charge-offs and current economic trends.

Non-interest income increased $36 thousand during the nine months ended September 30, 2017, as compared to the same period in 2016. Debit card interchange income increased $79 thousand, or 10%, as a result of increased servicer revenue during the nine months of 2017. Trust services declined $176 thousand during the nine months ended September 30, 2017 compared to the same period in 2016. Brokerage fees within the line declined by $106 thousand during this time as the Company reorganized both brokerage and trust and used the brokerage platform’s representative on demand during the first half of 2017 which provided reduced commissions. The Company has returned to an in-house brokerage representative during the third quarter of 2017. A loss on asset retirement of $64 thousand was recognized in other income during the nine month period in 2016. Service charges on deposits decreased $20 thousand from the same period in 2016 reflecting a decrease in overdraft fees based on volume. A decrease was recognized in gains on mortgage loans sold in the secondary market on a year over year basis as more loans were originated and retained for portfolio.

Non-interest expenses increased $575 thousand, or 5%, for the nine months ended September 30, 2017, compared to the same period in 2016. Salaries and employee benefits increased $517 thousand, or 7%, primarily the result of salary and medical benefit increases. Professional fees increased $76 thousand, or 13%, as audit expense grew by $120 thousand on a year over year basis from the outsourcing of internal audit in 2017. The financial institutions tax expense increased $74 thousand on a year over year basis as capital increased. Debit card expenses increased $72 thousand, or 21%, primarily due to the new issuance of cards with EMV chips. Software expense increased $46 thousand for the nine month period in 2017 as compared to the same period in 2016. Occupancy and equipment expense decreased $75 thousand, or 6%, reflecting a decrease in building lease expense and an increase in building rental income when compared to 2016. Marketing and public relations expense decreased $63 thousand, or 20%, primarily due to expenses related to redesign of the company’s website in 2016. FDIC assessment decreased $62 thousand as the fee calculation changed third quarter 2016. Loan legal and collection fees decreased $13 thousand for the nine month period ended September 30, 2017 with the collection of prior period legal expenses.

~~The provision for income taxes of $2.3 million increased in 2017 from 2016 with a slight increase to the effective rate of 30.4% for the nine months ended September 30, 2017 as compared to 2016.~~

The Company maintained a strong capital position with tangible common equity to tangible assets of ~~9.2%~~8.3% at ~~September 30, 2017~~March 31, 2023 compared with ~~9.1%~~7.9% at December ~~30, 2016.~~31, 2022.

Effective January 1, 2015 the Federal Reserve adopted final rules implementing Basel III and regulatory capital changes required by the Dodd-Frank Act. The rules apply to both the Company and the Bank. The rules established minimum risk-based and leverage capital requirements for all banking organizations. The quality of capital will be provided by the new measurement of Tier 1 capital called common equity tier 1 or (“CET1”). Effective with the March 31, 2015 Call Report the Bank selected the opt-out election for accumulated other comprehensive income (“AOCI”). This election will neutralize the effects of unrealized gains and losses from available-for-sale securities and other elements of the AOCI account for regulatory capital purposes.

Consistent with the Board of Director’s commitment to public confidence and safe and sound banking operations, capital targets and minimum risk-based capital ratios for CSB were established to maintain excess capital to well-capitalized standards. To be considered well-capitalized, an institution must have a

~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

total risk-based capital ratio of at least 10%, a tier 1 capital ratio of at least 8%, a leverage capital ratio of at least 5%, a ~~CET1~~common equity tier 1 (“CET1”) ratio of at least 6.5%, and must not be subject to any order or directive requiring the institution to improve its capital level. An adequately capitalized institution has a total risk-based capital ratio of at least 8%, a tier 1 capital ratio of at least 6%, a CET1 ratio of at least 4.5%, and a leverage ratio of at least 4%.

Failure to meet specified minimum capital requirements could result in regulatory actions by the Federal Reserve or Ohio Division of Financial Institutions that could have a material effect on the Company’s financial condition or results of operations. Management believes there were no material changes to capital resources aspresented in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2022. As of ~~September 30, 2017~~March 31, 2023, the Company and the Bank met all capital adequacy requirements to which they were subject.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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 the Company’s Asset Liability Committee. Other sources of liquidity include, but are not limited to, purchases of federal funds, advances from the FHLB, adjustments of interest rates to attract deposits, brokered deposits, and borrowing at the Federal Reserve discount window. Management believes that its sources of liquidity are adequate to meet cash flow obligations for the foreseeable future.

~~The liquidity ratio was 27.0% and 26.1% at September 30, 2017 and December 31, 2016.~~34

~~OFF-BALANCE SHEET ARRANGEMENTS~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Company does not have any off-balance sheet arrangements (as such term is defined in applicable Securities and Exchange Commission (the “Commission”) rules) that are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources.

Earnings per share is computed based on the weighted average number of shares of common stock outstanding during each year. The company currently maintains a simple capital structure, thus, there are no dilutive effects on earnings per share.

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

ITEM 3 ~~–QUANTITATIVE~~- QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

~~There~~By March 2023, Ohio's unemployment rate approximated 4.0%. The bank based in Holmes County is reporting an unemployment rate of 3.5% in March 2023. Of the counties within the bank's footprint, Tuscarawas County reported the highest unemployment rate at 4.4% in March. Many jobs within the Bank's market footprint continue to go unfilled. The rate of inflation, which stood at 5.0% in March 2023, is above the Federal Reserve target rate of 2%, but has fallen from 8.5% in March 2022. Interest rates have ~~been no material changes~~risen substantially during 2022 and 2023. Credit quality in the ~~quantitative~~Bank's loan portfolio has continued to improve, however risks to the economy remain with higher prices for goods and ~~qualitative disclosures about market risks as of September 30, 2017, from the disclosures presented in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016.~~labor.

Management performs a quarterly analysis of the Company’s interest rate risk over a ~~twenty-four month~~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. ~~Minor variances with net interest income exceeding the board approved policy are being projected in the September 2017 dynamic balance sheet simulation coupled with immediate rate shocks.~~ All ~~other~~ balance sheet positions, and interest rate projections are currently within the Company’s board-approved ~~policy.~~policy for both the twelve- month and twenty-four-month periods.

The following table presents an analysis of the estimated sensitivity of the Company’s annual net interest income to sudden and sustained ~~-100~~-400 through +400 basis point changes, in 100 basis point increments, in market interest rates at ~~September 30, 2017~~March 31, 2023 and December 31, ~~2016.~~2022. The net interest income reflected is for the first ~~twelve month~~twelve-month period of the modeled ~~twenty-four month~~twenty-four-month horizon. The underlying balance sheet for illustrative purposes is dynamic with projected growth in assets and liabilities.

With the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer, the Company has evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that:

There were no changes during the period covered by this Quarterly Report on Form 10-Q in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

In the opinion of management there are no outstanding legal proceedings that are reasonably likely to have a material adverse effect on the company’s financial condition or results of operations.

On March 2, 2021, CSB Bancorp, Inc. filed Form 8-K with the Commission announcing that its Board of Directors approved a Stock Repurchase Program authorizing the repurchase of up to 5% of the Company’s common shares or 137,117 of the Company’s outstanding shares. 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.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Ohio	34-1687530
( State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
91 North Clay Street, P.O. Box 232 Millersburg, OH	44654
(Address of principal executive offices)	(Zip Code)


~~Ohio~~	~~34-1687530~~
~~(State or other jurisdiction~~Title of ~~incorporation or organization)~~ each class	~~(I.R.S. Employer~~Trading ~~Identification Number)~~Symbol(s)	Name of each exchange on which registered
Common Shares, $6.25 par value	CSBB	OTCPink


~~Common stock, $6.25 par value~~	Part I - Financial Information	~~Outstanding at November 1, 2017:~~
		~~2,742,242 common shares~~


		~~Page~~
		Page
ITEM 1 –	FINANCIAL STATEMENTS (Unaudited)			3
	Consolidated Balance Sheets		3
	Consolidated Statements of Income		4
	Consolidated Statements of Comprehensive Income (Loss)		5
	~~Condensed~~ Consolidated Statements of Changes in ~~Shareholders’~~Shareholders' Equity		6
	Condensed Consolidated Statements of Cash Flows		7
	Notes to Consolidated Financial Statements		8

ITEM 2 – ~~MANAGEMENT’S~~	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		27	29
ITEM 3 –	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		34	35
ITEM 4 –	CONTROLS AND PROCEDURES		35	36

	Part II - Other Information

ITEM 1 –	Legal Proceedings		36	37
ITEM 1A –	Risk Factors		36	37
ITEM 2 –	Unregistered Sales of Equity Securities and Use of Proceeds		36	37
ITEM 3 –	Defaults upon Senior Securities		36	37
ITEM 4 –	Mine Safety Disclosures		36	37
ITEM 5 –	Other Information		36	37
ITEM 6 –	Exhibits		37	38
	Signatures		38	39

☒
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	September 30,			December 31,			March 31,			December 31,
(Dollars in thousands)	2017			2016
(Dollars in thousands, except per share data)							2023			2022
ASSETS
Cash and cash equivalents
Cash and due from banks	$	15,592		$	13,590		$	16,965		$	19,911
Interest-earning deposits in other banks		29,780			23,248

Interest-earning deposits with banks								38,550			66,509
Total cash and cash equivalents		45,372			36,838			55,515			86,420

Securities
Available-for-sale, at fair value		98,048			103,875			149,269			150,069
Held-to-maturity (fair value 2017-$26,431; 2016-$23,444)		26,475			23,883
Held-to-maturity (fair value 2023-$213,051; 2022-$211,954)								243,334			247,401
Equity securities								253			244
Restricted stock, at cost		4,614			4,614			1,760			3,430

Total securities		129,137			132,372			394,616			401,144

Loans held for sale		1,108			—			—			52

Loans		509,458			475,449			647,773			627,171
Less allowance for loan losses		5,436			5,291

Less allowance for credit losses								6,307			6,838
Net loans		504,022			470,158			641,466			620,333

Premises and equipment, net		8,906			8,749			13,240			13,414
Core deposit intangible		296			383
Bank-owned life insurance								24,878			24,709
Goodwill		4,728			4,728			4,728			4,728
Bank-owned life insurance		13,131			10,361
Accrued interest receivable and other assets		4,124			6,389			8,951			8,308

TOTAL ASSETS	$	710,824		$	669,978		$	1,143,394		$	1,159,108

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Noninterest-bearing	$	167,563		$	167,824		$	329,500		$	350,283
Interest-bearing		404,063			372,961			678,007			673,134

Total deposits		571,626			540,785			1,007,507			1,023,417

Short-term borrowings		45,057			48,742			29,813			32,550
Other borrowings		21,596			12,385			2,394			2,461
Allowance for credit losses on off-balance sheet commitments								430			—
Accrued interest payable and other liabilities		2,707			2,651			4,243			4,760

Total liabilities		640,986			604,563

SHAREHOLDERS’ EQUITY
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares; outstanding (shares 2017 and 2016 - 2,742,242)		18,629			18,629
TOTAL LIABILITIES								1,044,387			1,063,188
SHAREHOLDERS' EQUITY
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares; outstanding 2,680,625 shares in 2023 and 2,707,576 in 2022								18,629			18,629
Additionalpaid-in capital		9,815			9,815			9,815			9,815
Retained earnings		46,250			42,629			89,524			86,502
Treasury stock at cost (shares 2017 and 2016 - 238,360)		(4,784	)		(4,784	)
Treasury stock at cost: 299,977 shares in 2023 and 273,026 shares in 2022								(7,126	)		(6,107	)
Accumulated other comprehensive loss		(72	)		(874	)		(11,835	)		(12,919	)

Total shareholders’ equity		69,838			65,415

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	710,824		$	669,978

TOTAL SHAREHOLDERS' EQUITY								99,007			95,920
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY							$	1,143,394		$	1,159,108


	Three Months Ended				Nine Months Ended
	September 30,				September 30,				Three Months Ended March 31,
(Dollars in thousands, except per share data)	2017		2016		2017		2016		2023			2022
INTEREST AND DIVIDEND INCOME
Loans, including fees	$	5,907	$	5,042	$	16,940	$	14,750	$	7,969		$	5,777
Taxable securities		599		634		1,796		2,032		2,012			1,281
Nontaxable securities		171		163		509		482		101			110
Other		89		24		180		73		545			74

Total interest and dividend income		6,766		5,863		19,425		17,337		10,627			7,242

INTEREST EXPENSE
Deposits		368		249		942		758		1,584			349
Short-term borrowings		49		19		106		55		66			12
Other borrowings		145		98		361		296		12			16

Total interest expense		562		366		1,409		1,109		1,662			377

NET INTEREST INCOME		6,204		5,497		18,016		16,228		8,965			6,865

PROVISION FOR LOAN LOSSES		280		164		965		493

Net interest income, after provision for loan losses		5,924		5,333		17,051		15,735

CREDIT LOSS EXPENSE
Provision (recovery) for credit loss expense - loans										32			(300	)
Provision (recovery) for credit loss expense - off-balance sheet commitments										(63	)		—
Total (recovery) provision for credit loss expense										(31	)		(300	)
NET INTEREST INCOME AFTER CREDIT LOSS EXPENSE										8,996			7,165
NONINTEREST INCOME
Service charges on deposit accounts		287		301		847		867		292			265
Trust services		122		213		481		657		258			264
Debit card interchange fees		298		270		882		803		521			495
Credit card fees										177			155
Gain on sale of loans, net		94		71		197		221		3			118
Earnings on bank owned life insurance		86		70		270		207		169			166
Securities gains		—		1		—		1
Unrealized gain or (loss) on equity securities, net										9			1
Other income		167		169		543		428		199			178

Total noninterest income		1,054		1,095		3,220		3,184		1,628			1,642

NONINTEREST EXPENSES
NONINTEREST EXPENSE
Salaries and employee benefits		2,531		2,319		7,462		6,945		3,294			3,155
Occupancy expense		236		229		660		707		282			272
Equipment expense		143		170		485		513		207			214
Professional and director fees		257		221		660		584		321			276
Financial institutions and franchise tax expense		131		107		394		320		192			195
Marketing and public relations		91		94		259		322		123			111
Software expense		219		203		633		587		399			333
Debit card expense		139		120		410		338		146			164
Amortization of intangible assets		29		30		87		91
FDIC insurance expense		58		57		160		222		71			83
Provision for unfunded loan commitments										—			13
Other expenses		452		444		1,410		1,416		684			652

Total noninterest expenses		4,286		3,994		12,620		12,045

Total noninterest expense										5,719			5,468
Income before income taxes		2,692		2,434		7,651		6,874		4,905			3,339
FEDERAL INCOME TAX PROVISION		826		740		2,329		2,089		971			638

NET INCOME	$	1,866	$	1,694	$	5,322	$	4,785	$	3,934		$	2,701

Basic and diluted net earnings per share	$	0.68	$	0.61	$	1.94	$	1.74	$	1.46		$	0.99


(Dollars in thousands, except per share data)	Common stock		Additional paid-in capital		Retained earnings			Treasury stock			Accumulated other comprehensive loss			Total
Three Months Ended March 31, 2023
Balance, December 31, 2022	$	18,629	$	9,815	$	86,502		$	(6,107	)	$	(12,919	)	$	95,920
Net income		—		—		3,934			—			—			3,934
Cumulative effect of adoption of ASU 2016-13		—		—		52			—			—			52
Other comprehensive income		—		—		—			—			1,084			1,084
Purchase of 26,951 treasury shares		—		—		—			(1,019	)		—			(1,019	)
Cash dividends declared, $0.36 per share		—		—		(964	)		—			—			(964	)
Balance, March 31, 2023	$	18,629	$	9,815	$	89,524		$	(7,126	)	$	(11,835	)	$	99,007
Three Months Ended March 31, 2022
Balance, December 31, 2021	$	18,629	$	9,815	$	76,715		$	(5,719	)	$	(2,125	)	$	97,315
Net income		—		—		2,701			—			—			2,701
Other comprehensive loss		—		—		—			—			(5,088	)		(5,088	)
Balance, March 31, 2022	$	18,629	$	9,815	$	79,416		$	(5,719	)	$	(7,213	)	$	94,928


	January 1, 2023
(Dollars in thousands)	Pre-adoption		Adoption Impact			As Reported
Assets:
ACL on loans
Commercial and industrial	$	1,110	$	658		$	1,768
Commercial real estate		2,760		(541	)		2,219
Commercial lessors of buildings		—		974			974
Construction		803		(515	)		288
Consumer mortgage		1,268		(580	)		688
Home equity line of credit		—		201			201
Consumer installment		233		(183	)		50
Consumer indirect		—		91			91
Unallocated		664		(664	)		—
Total allowance for credit losses - loans		6,838		(559	)	$	6,279

Liabilities:
ACL for off-balance sheet commitments		—		493			493
Total allowance for credit losses	$	6,838		(66	)	$	6,772


	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2017		2016		2017		2016
Average recorded investment:
Commercial	$	3,084	$	6,389	$	3,376	$	6,393
Commercial real estate		4,712		660		2,934		799
Residential real estate		1,370		1,460		1,471		1,504

Average recorded investment in impaired loans	$	9,166	$	8,509	$	7,781	$	8,696

Interest income recognized:
Commercial	$	10	$	54	$	41	$	176
Commercial real estate		7		3		9		9
Residential real estate		13		15		43		44

Interest income recognized on a cash basis on impaired loans	$	30	$	72	$	93	$	229


(Dollars in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days + Past Due		Non- Accrual		Total Past Due and Non- Accrual		Total Loans
September 30, 2017
Commercial	$	136,544	$	28	$	—	$	144	$	743	$	915	$	137,459
Commercial real estate		173,989		160		—		40		3,399		3,599		177,588
Residential real estate		151,684		914		108		68		507		1,597		153,281
Construction & land development		23,915		—		—		—		—		—		23,915
Consumer		16,561		87		9		1		28		125		16,686

Total Loans	$	502,693	$	1,189	$	117	$	253	$	4,677	$	6,236	$	508,929

December 31, 2016
Commercial	$	133,630	$	151	$	62	$	—	$	425	$	638	$	134,268
Commercial real estate		158,504		435		—		39		497		971		159,475
Residential real estate		142,926		816		61		196		490		1,563		144,489
Construction & land development		23,428		—		—		—		—		—		23,428
Consumer		13,234		21		16		—		37		74		13,308

Total Loans	$	471,722	$	1,423	$	139	$	235	$	1,449	$	3,246	$	474,968


(Dollars in thousands)	Number of loans restructured		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
For the three months ended September 30, 2017
Residential Real Estate		1	$	38	$	38

Total Restructured Loans		1	$	38	$	38

For the nine months ended September 30, 2017
Commercial Real Estate		4	$	288	$	288
Residential Real Estate		2		52		52

Total Restructured Loans		6	$	340	$	340

For the three months ended September 30, 2016
Residential Real Estate		—	$	—	$	—

Total Restructured Loans		—	$	—	$	—

For the nine months ended September 30, 2016
Residential Real Estate		3	$	327	$	327

Total Restructured Loans		3	$	327	$	327


(Dollars in thousands)	Performing		Non-Performing		Total
September 30, 2017
Commercial	$	861	$	—	$	861
Commercial real estate		234		—		234
Residential real estate		152,315		575		152,890
Construction & land development		4,334		—		4,334
Consumer		16,657		29		16,686

Total	$	174,401	$	604	$	175,005

December 31, 2016
Commercial	$	951	$	—	$	951
Commercial real estate		911		—		911
Residential real estate		143,440		658		144,098
Construction & land development		4,760		—		4,760
Consumer		13,271		37		13,308

Total	$	163,333	$	695	$	164,028


	Nine Months Ended
	September 30,						Three Months Ended March 31,
(Dollars in thousands)	2017			2016			2023			2022
NET CASH FROM OPERATING ACTIVITIES	$	4,812		$	6,206		$	2,784		$	881

CASH FLOWS FROM INVESTING ACTIVITIES
Securities:
Proceeds from repayments, available-for-sale								1,999			4,530
Proceeds from repayments,held-to-maturity		2,156			18,302			4,039			5,205
Proceeds from repayments,available-for-sale		15,818			38,139
Purchases,available-for-sale		(9,243	)		(22,217	)		—			(22,872	)
Purchases,held-to-maturity		(4,700	)		(7,000	)		—			(76,712	)
Proceeds from sale ofavailable-for-sale securities		—			1
Loan originations, net of repayments		(34,774	)		(40,480	)
Purchases, equity securities								—			(131	)
Redemption of FHLB stock								1,670			—
Loan (originations) repayments, net								(20,671	)		(18,716	)
Property, equipment, and software acquisitions		(805	)		(1,055	)		(29	)		(78	)

Net cash used in investing activities		(31,548	)		(14,310	)		(12,992	)		(108,774	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits		30,841			(2,802	)
Net change in short-term borrowings		(3,685	)		2,369
Proceeds from other borrowings		10,000			—
Net decrease in deposits								(15,910	)		(7,808	)
Net (decrease) increase in short-term borrowings								(2,737	)		2,363
Repayment of other borrowings		(789	)		(989	)		(67	)		(82	)
Cash dividends paid		(1,097	)		(1,042	)		(964	)		—

Net cash provided by (used in) financing activities		35,270			(2,464	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	$	8,534		$	(10,568	)

Purchase of treasury shares								(1,019	)		—
Net cash used in financing activities								(20,697	)		(5,527	)
NET DECREASE IN CASH AND CASH EQUIVALENTS								(30,905	)		(113,420	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		36,838			38,272			86,420			243,657


	Remaining Contractual Maturity Overnight and Continuous
	March 31,		December 31,
(Dollars in thousands)	2023		2022
Securities of U.S. Government Agencies and mortgage-backed securities of government agencies pledged, fair value	$	29,967	$	32,775
Repurchase agreements		29,813		32,550


	Remaining Contractual Maturity Overnight and Continuous
(Dollars in thousands)	September 30, 2017		December 31, 2016
Securities of U.S. Government Agencies and mortgage-backed securities of government agencies pledged, fair value	$	45,234	$	48,866
Repurchase agreements		45,057		48,742


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; and inputs that are derived principally from or corroborated by observable market data by corroborated or other means. 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.


(Dollars in thousands)	Level I		Level II		Level III		Total		Level I		Level II		Level III		Total
September 30, 2017
March 31, 2023
Assets:
Securitiesavailable-for-sale
U.S. Treasury security	$	998	$	—	$	—	$	998
U.S. Treasury securities									$	22,428	$	—	$	—	$	22,428
U.S. Government agencies		—		8,300		—		8,300		—		12,850		—		12,850
Mortgage-backed securities of government agencies		—		50,506		—		50,506		—		67,895		—		67,895
Asset-backed securities of government agencies		—		1,194		—		1,194		—		571		—		571
State and political subdivisions		—		27,477		—		27,477		—		19,772		—		19,772
Corporate bonds		—		9,483		—		9,483		—		25,753		—		25,753

Total debt securities		998		96,960		—		97,958
Total available-for-sale securities									$	22,428	$	126,841	$	—	$	149,269
Equity securities		90		—		—		90	$	207	$	—	$	—	$	207

Totalavailable-for-sale securities	$	1,088	$	96,960	$	—	$	98,048


December 31, 2016
December 31, 2022
Assets:
Securitiesavailable-for-sale
U.S. Treasury security	$	1,001	$	—	$	—	$	1,001
U.S. Treasury securities									$	22,225	$	—	$	—	$	22,225
U.S. Government agencies		—		6,402		—		6,402		—		12,630		—		12,630
Mortgage-backed securities of government agencies		—		55,837		—		55,837		—		68,890		—		68,890
Other mortgage-backed securities		—		65		—		65
Asset-backed securities of government agencies		—		1,266		—		1,266		—		618		—		618
State and political subdivisions		—		29,708		—		29,708		—		19,477		—		19,477
Corporate bonds		—		9,516		—		9,516		—		26,229		—		26,229

Total debt securities		1,001		102,794		—		103,795
Total available-for-sale securities									$	22,225	$	127,844	$	—	$	150,069
Equity securities		80		—		—		80	$	198	$	—	$	—	$	198

Totalavailable-for-sale securities	$	1,081	$	102,794	$	—	$	103,875


	Quantitative Information about Level III Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range��(Weighted Average)
(Dollars in thousands)
September 30, 2017
Impaired loans	$	2,120	Discounted cash flow	Remaining term Discount rate	7 mo to 29.8 yrs (182 months) 3.5% to 9.8% (4.9%)

		4,261	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾ Liquidation expense ⁽²⁾	0% to -25% (-20%) -10%

December 31, 2016
Impaired loans	$	5,330	Discounted cash flow	Remaining term Discount rate	6 mos to 29.9 yrs / (61.1 mos) 3.1% to 12.0% / (4.9%)

		1,097	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾ Liquidation expense⁽²⁾	0% to -50% (-21.7%) -10%


(Dollars in thousands)	Carrying Value		Level I		Level II		Level III		Fair Value
March 31, 2023
Financial assets
Securities held-to-maturity	$	243,334	$	11,836	$	201,215	$	—	$	213,051
Loans held for sale		—		—		—		—		—
Net loans		641,466		—		—		622,852		622,852
Mortgage servicing rights		606		—		—		606		606
Financial liabilities
Deposits	$	1,007,507	$	879,886	$	—	$	128,398	$	1,008,284
Other borrowings		2,394		—		—		2,270		2,270

December 31, 2022
Financial assets
Securities held-to-maturity	$	247,401	$	11,617	$	200,337	$	—	$	211,954
Loans held for sale		52		55		—		—		55
Net loans		620,333		—		—		600,720		600,720
Mortgage servicing rights		621		—		—		621		621
Financial liabilities
Deposits	$	1,023,417	$	905,335	$	—	$	114,478	$	1,019,813
Other borrowings		2,461		—		—		2,321		2,321


(Dollars in thousands)	Pretax			Tax Effect			After-tax
Three Months Ended March 31, 2023
Balance, beginning of period	$	(16,354	)	$	3,435		$	(12,919	)
Unrealized holding gain (loss) on available-for-sale securities arising during the period		1,327			(279	)		1,048
Amortization of held-to-maturity discount resulting from transfer		46			(10	)		36
Total other comprehensive income		1,373			(289	)		1,084
Balance, end of period	$	(14,981	)	$	3,146		$	(11,835	)

Three Months Ended March 31, 2022
Balance, beginning of period	$	(2,691	)	$	566		$	(2,125	)
Unrealized holding loss on available-for-sale securities arising during the period		(6,538	)		1,373			(5,165	)
Amortization of held-to-maturity discount resulting from transfer		98			(21	)		77
Total other comprehensive loss		(6,440	)		1,352			(5,088	)
Balance, end of period	$	(9,131	)	$	1,918		$	(7,213	)


	For the Three Months Ended March 31,
	2023								2022
(Dollars in thousands)	Average balance1		Interest			Average rate2			Average balance1		Interest			Average rate2
ASSETS
Interest-earning deposits	$	47,644	$	545			4.64	%	$	158,161	$	74			0.19	%
Taxable securities		375,867		2,012			2.17			334,357		1,281			1.55
Tax-exempt securities 4		22,093		129			2.37			25,311		140			2.24
Loans 3,4		637,392		7,975			5.07			560,440		5,784			4.19
Total interest-earning assets		1,082,996		10,661			3.99	%		1,078,269		7,279			2.74	%
Noninterest-earning assets		64,037								60,329
TOTAL ASSETS	$	1,147,033							$	1,138,598

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand deposits	$	237,387	$	505			0.86	%	$	237,680	$	49			0.08	%
Savings deposits		317,357		532			0.68			309,094		68			0.09
Time deposits		122,329		547			1.81			119,912		232			0.78
Borrowed funds		35,483		78			0.89			44,027		28			0.26
Total interest-bearing liabilities		712,556		1,662			0.95	%		710,713		377			0.22	%
Noninterest-bearing demand deposits		331,648								326,725
Other liabilities		5,510								3,918
Shareholders' Equity		97,319								97,242
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,147,033							$	1,138,598
Taxable equivalent net interest income, (Non-GAAP)			$	8,999							$	6,902
Tax equivalent adjustment 4				(34	)							(37	)
Net interest income, (GAAP)			$	8,965							$	6,865
Net interest margin, (GAAP)							3.36	%							2.58	%
Tax equivalent adjustment 4							0.01								0.02
Net interest margin-taxable equivalent, (Non-GAAP)							3.37	%							2.60	%
Taxable equivalent net interest spread							3.04	%							2.52	%


	For the nine months ended September 30,
	2017					2016
(Dollars in thousands)	Average balance		Average rate			Average balance		Average rate
ASSETS
Due from banks-interest bearing	$	20,212		1.16	%	$	13,886		0.68	%
Federal funds sold		629		0.85			558		0.48
Taxable securities		101,319		2.37			124,398		2.18
Tax-exempt securities		31,497		3.27			27,737		3.55
Loans		492,075		4.61		��	443,977		4.45

Total earning assets		645,732		4.08	%		610,556		3.85	%
Other assets		39,478					36,451

TOTAL ASSETS	$	685,210				$	647,007

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing demand deposits	$	94,621		0.10	%	$	82,973		0.04	%
Savings deposits		168,998		0.17			164,140		0.07
Time deposits		111,647		0.79			117,266		0.73
Other borrowed funds		69,957		0.89			65,017		0.72

Total interest bearing liabilities		445,223		0.42	%		429,396		0.34	%
Non-interest bearing demand deposits		169,131					151,479
Other liabilities		2,684					2,136
Shareholders’ Equity		68,172					63,996

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	685,210				$	647,007

Taxable equivalent net interest spread				3.66	%				3.51	%
Taxable equivalent net interest margin				3.79	%				3.61	%


	September 30, 2017			December 31, 2016
Common Equity Tier 1 Capital To Risk Weighted Assets
Consolidated		12.6	%		12.6	%
Bank		12.4	%		12.4	%

Tier 1 Capital To Risk Weighted Assets Ratio
Consolidated		12.6	%		12.6	%
Bank		12.4	%		12.4	%

Total Capital To Risk Weighted Assets Ratio
Consolidated		13.7	%		13.7	%
Bank		13.4	%		13.5	%

Tier 1 Leverage Ratio
Consolidated		9.3	%		9.3	%
Bank		9.2	%		9.1	%


(Dollars in millions)	September 30, 2017			December 31, 2016			Change
Cash and cash equivalents	$	45		$	37		$	8
Unused lines of credit		76			66			10
Unpledged AFS securities at fair market value		30			37			(7	)

	$	151		$	140		$	11

Net deposits and short-term liabilities	$	560		$	533		$	27

Liquidity ratio		27.0	%		26.1	%		0.9
Minimum board approved liquidity ratio		20.0	%		20.0	%		—


	Capital Ratios
	March 31, 2023			December 31, 2022
Total Capital To Risk Weighted Assets Ratio
Consolidated		16.0	%		16.0	%
Bank		15.9			15.9

Tier 1 Capital To Risk Weighted Assets Ratio
Consolidated		15.1			15.1
Bank		15.0			14.9

Common Equity Tier 1 Capital To Risk Weighted Assets
Consolidated		15.1			15.1
Bank		15.0			14.9

Tier 1 Leverage Ratio
Consolidated		9.2			8.8
Bank		9.1			8.7


~~ITEM 1-~~		~~LEGAL PROCEEDINGS.~~

		~~In the opinion of management there are no outstanding legal proceedings that are reasonably likely to have a material adverse effect on the company’s financial condition or results of operations.~~

~~ITEM 1A-~~		~~RISK FACTORS.~~

		~~There have been no material changes to the Company’s risk factors from those disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016.~~

~~ITEM 2-~~		~~UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.~~

		On July 7, 2005 CSB Bancorp, Inc. filed Form 8-K with the Commission 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. No repurchases were made during the quarterly period ended September 30, 2017.

~~ITEM 3-~~		~~DEFAULTS UPON SENIOR SECURITIES.~~

		~~Not applicable.~~

~~ITEM 4-~~		~~MINE SAFETY DISCLOSURES.~~

		~~Not applicable.~~

~~ITEM 5-~~		~~OTHER INFORMATION.~~

		~~Not applicable.~~


Period	Total Number of Common Shares Purchased		Average Price Paid per Common Share		Total Number of Shares Purchased as Part of Publicly Announced Authorization		Maximum Number of Remaining Shares that May be Purchased as Part of Publicly Announced Authorization
January 1, 2023 - January 31, 2023		—		—		—		102,344
February 1, 2023 - February 28, 2023		26,951	$	37.80		26,951		75,393
March 1, 2023 - March 31, 2023		—		—		—		75,393
Total for quarter		26,951	$	37.80		26,951		75,393


Exhibit Number		Description of Document

3.1		Amended Articles of Incorporation of CSB Bancorp, Inc. (incorporated by reference to the 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 99579179).
3.2		Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to the Registrant’s Form 10-SB).

3.2.1		Amended Article VIII of the 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).
3.2.2
~~4.0~~		~~Specimen stock certificate~~ Amended Article II of the Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to Registrant’s Form ~~10-SB)~~DEF 14a file on March 16, 2021, Appendix A, film number 21747059). ~~(P)~~
3.2.3		Amended Article III of the Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to Regisrant's Form DEF 14a file on March 16, 2023, Appendix A, film number 23738842).
11		~~Statement Regarding Computation of Per Share Earnings.~~
4.0		Description of Capital Stock (incorporated by reference to registrants Annual Report on Form 10-K filed on March 16, 2020, Exhibit 4.0, film number 20717009).
~~31.1~~
31.1		Rule 13a-14(a)/15d-14(a) Chief Executive Officer’s Certification.

31.2		Rule 13a-14(a)/15d-14(a) Chief Financial Officer’s Certification.

32.1		Section 1350 Chief Executive Officer’s Certification.

32.2		Section 1350 Chief Financial Officer’s Certification.

101		The following ~~materials~~financial statements from the ~~Company’s~~Company's Quarterly Report on Form 10-Q for the quarter ended ~~September 30, 2017~~March 31, 2023, formatted in ~~XBRL (extensible Business Reporting Language):~~Inline XBRL: (i) Consolidated Balance ~~Sheets:~~Sheets, (ii) Consolidated Statements of ~~Income:~~Net Loss and Comprehensive Loss , (iii) Consolidated Statements of ~~Comprehensive Income:~~Stockholders' Equity, (iv) ~~Condensed Consolidated Statements of Changes in Shareholders’ Equity: (v) Condensed~~ Consolidated Statements of Cash ~~Flows:~~Flows, and ~~(vi)~~(v) Notes to Consolidated Financial ~~Statements.~~Statements, tagged as blocks of text and including detailed tags.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


			~~CSB BANCORP, INC.~~
			~~(Registrant)~~

~~Date: November 9, 2017~~				CSB BANCORP, INC.
		(Registrant)


Date:	May 15, 2023	/s/ Eddie L. Steiner
			Eddie L. Steiner
			President
			Chief Executive Officer

~~Date: November 9, 2017~~
Date:	May 15, 2023	/s/ Paula J. Meiler
			Paula J. Meiler
			Senior Vice President
			Chief Financial Officer

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company