11/09/2021 | Press release | Distributed by Public on 11/09/2021 15:03

Quarterly Report (Form 10-Q)

csbb-10q_20210930.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

For the quarterly period ended: September 30, 2021

OR

Commission File Number: 0-21714

CSB Bancorp, Inc.

(Exact Name of Registrant as Specified in its Charter)

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

Securities registered pursuant to Section 12(b) of the Act:

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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit 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 an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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 registrant is a shell company (as defined in Rule 12b-2 of the 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 November 1, 2021, the registrant had 2,725,524 shares of common stock, $6.25 par value per share, outstanding.

CSB BANCORP, INC.

FORM 10-Q

QUARTER ENDED September 30, 2021

Table of Contents

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CSB BANCORP, INC.

PART I - FINANCIAL INFORMATION

ITEM 1. - FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

(Unaudited)

See notes to unaudited consolidated financial statements.

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CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

4

See notes to unaudited consolidated financial statements

CSB BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

See notes to unaudited consolidated financial statements.

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Unaudited)

See notes to unaudited consolidated financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

See notes to unaudited consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying condensed consolidated financial statements include the accounts of CSB Bancorp, Inc. and its wholly-owned subsidiaries, The Commercial and Savings Bank (the "Bank") and CSB Investment Services, LLC (together referred to as the "Company" or "CSB"). All significant intercompany transactions and balances have been eliminated in consolidation.

The condensed consolidated financial statements have been prepared without audit. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present fairly the Company's financial position at September 30, 2021, and the results of operations and changes in cash flows for the periods presented have been made.

Certain information and footnote disclosures typically included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been omitted. The Annual Report for CSB for the year ended December 31, 2020, contains Consolidated Financial Statements and related footnote disclosures, which should be read in conjunction with the accompanying condensed Consolidated Financial Statements. The results of operations for the periods ended September 30, 2021 are not necessarily indicative of the operating results for the full year or any future interim period.

Certain items in the prior-year financial statements were reclassified to conform to the current-year presentation. Such reclassifications had no effect on net income or shareholders' equity.

USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

ASU 2016-13 - Financial Instruments - Credit Losses. The Update and all subsequent ASU's that modified Topic 326, requires that financial assets be presented at the net amount expected to be collected (i.e. net of expected credit losses), eliminating the probable recognition threshold for credit losses on financial assets measured at amortized cost. The measurement of expected credit losses should be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. We expect the Update will result in an increase in the allowance for credit losses for the estimated life of the financial asset, including an estimate for held-to-maturity debt securities. The amount of any increase will be impacted by the portfolio composition and quality at the adoption date, as well as economic conditions and forecasts at that time. A cumulative-effect adjustment to retained earnings is required as of the beginning of the year of adoption. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In November 2019, the FASB deferred the effective date for ASC 326, Financial Instruments - Credit Losses, for smaller reporting companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company qualifies as a smaller reporting company and does not expect to early adopt these ASU's.

ASU 2017-04 - Simplifying the Test for Goodwill Impairment. The Update, and all subsequent ASU's, simplifies the goodwill impairment test. Under the new guidance, Step 2 of the goodwill impairment process that requires an entity to determine the implied fair value of its goodwill by assigning fair value to all its assets and liabilities is eliminated. Instead, the entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The new guidance is effective for annual and interim goodwill tests performed in fiscal years beginning after December 15, 2019. Early adoption is permitted. In November 2019, the FASB deferred the effective date for ASC 350, Intangibles - Goodwill and Other, for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. This Update is not expected to have a material impact on the Company's financial statements.

ASU 2020-4 - Reference Rate Reform (Topic 848). This update provides temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met, and can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through December 31, 2022. This Update is not expected to have a significant impact on the Company's financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 2 - SECURITIES

Securities consist of the following on September 30, 2021 and December 31, 2020:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 2 - SECURITIES (continued)

The amortized cost and fair value of debt securities on September 30, 2021, 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.

Securities with a fair value of approximately $119.9 million and $91.0 million were pledged on September 30, 2021 and December 31, 2020, 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 million on September 30, 2021 and December 31, 2020. Federal Reserve Bank stock was $471 thousand on September 30, 2021 and December 31, 2020.

There were no proceeds from sales of securities for the three and nine-month period ended September 30, 2021 and 2020. All gains and losses recognized on equity securities during the three and nine-month period were unrealized.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 2 - SECURITIES (continued)

The following table presents gross unrealized losses and fair value of securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, on September 30, 2021 and December 31, 2020:

There were fifty-seven securities in an unrealized loss position on September 30, 2021, seven of which were in a continuous loss position for twelve months or more. 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 impaired on September 30, 2021.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 - LOANS

Loans consist of the following:

¹ Includes $17.0 million and $70.1 million of Paycheck Protection Program loans on September 30, 2021, and December 31, 2020, respectively.

Loan Origination/Risk Management

The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-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, 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.

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

With respect to loans to developers and builders that are secured by non-owner occupied properties, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction and land development loans are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, and financial analysis of the developers and

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 3 - LOANS (continued)

property owners. Construction and land development loans are generally based upon estimates of costs and value associated with the completed project. These estimates may be inaccurate.

Construction and land development loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property, or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing.

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

The Company maintains an independent 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 $137.5 million and $117.5 million on September 30, 2021 and December 31, 2020, respectively.

Paycheck Protection Program

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provided over $2 trillion in economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration ("SBA") to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program ("PPP"). As a qualified SBA lender, the Company was automatically authorized to originate PPP loans. The PPP provides loans to small businesses who were affected by economic conditions as a result of COVID-19 to provide cash flow assistance to employers who maintain their payroll (including healthcare and certain related expenses), mortgage interest, rent, leases, utilities and interest on existing debt during the COVID-19 emergency. The Company had 208 PPP loans with outstanding principal balances of $17.0 million as of September 30, 2021, and 671 PPP loans with balances of $70.1 million outstanding as of December 31, 2020. The PPP loans are 100% guaranteed by the SBA and may be eligible for forgiveness by the SBA to the extent that the proceeds are used to cover eligible payroll costs, interest costs, rent, and utility costs over a period of up to 24 weeks after the loan is made as long as certain conditions are met regarding employee retention and compensation levels. PPP loans deemed eligible for forgiveness by the SBA will be repaid by the SBA to the Company. PPP loans are included in the Commercial loan category with no allowance for loan losses allocated.

In accordance with the SBA terms and conditions on these PPP loans, as of September 30, 2021, the Company has received approximately $5.4 million in fees associated with the processing of these loans since the inception of the program. Upon funding of the loans, fees are deferred and amortized over the life of the loan with the unearned balance fully recognized at the time a loan is forgiven as an adjustment to yield in accordance with FASB ASC 310-20-25-2. For the nine months ended September 30, 2021 and 2020, interest and fee income recognized on PPP loans was $2.7 million and $1.5 million, respectively. For the three months ended September 30, 2021 and 2020, interest and fee income recognized on PPP loans was $969 thousand and $845 thousand, respectively. As of September 30, 2021, there was approximately $620 thousand in remaining unearned fees on PPP loans outstanding.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 3 - LOANS (continued)

Concentrations of Credit

Nearly all the Company's lending activity occurs within the state of Ohio, including the four counties of Holmes, Stark, Tuscarawas and Wayne, as well as other markets. The majority of the Company's loan portfolio consists of commercial and commercial real estate loans. Credit concentrations, including commitments, as determined using North American Industry Classification Codes (NAICS), to the two largest industries compared to total loans at September 30, 2021, included $50.4 million, or 9%, of total loans to lessors of non-residential buildings or dwellings, and $33.5 million, or 6%, of total loans to 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.

The Company has identified industries that could be at a higher risk due to the COVID-19 pandemic. As of September 30, 2021, the total balance of loans, including commitments, identified to COVID-19 affected businesses was $51.8 million, with $33.5 million of those loans to assisted living facilities and $14.0 million to businesses in the hotel industry.

Allowance for Loan Losses

The following tables detail activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2021 and 2020. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

For the three and nine months ended September 30, 2021, the increase in the provision for loan losses for construction and land development loans was primarily related to loans to assisted living facilities that have been affected by the COVID-19 pandemic. The decrease in provision for all other categories for the three and nine-month periods is related to the improvement in economic conditions along with fewer delinquent and nonperforming loans and improvement in adversely classified loan balances.

For the three and nine months ended September 30, 2020 the increase in the provision for loan losses for commercial real estate and construction loans was primarily due to the increased risk identified for businesses affected by the COVID-19 pandemic. The decrease in provision related to the commercial loan category was primarily due to lower commercial loan volume, excluding the SBA guaranteed PPP loans along with lower historical losses. The decrease in provision related to residential real estate and other consumer loans was due to the improvement in the unemployment rate during the third quarter as businesses reopened after the economic shutdown.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 3 - LOANS (continued)

Summary of Allowance for Loan Losses

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 September 30, 2021 and December 31, 2020:

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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, 2021 and December 31, 2020:

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

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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, 2021 and December 31, 2020 by class of loans:

Troubled Debt Restructurings

All troubled debt restructurings ("TDRs") are individually evaluated for impairment and a related allowance is recorded, as needed. Loans whose terms have been modified as TDRs totaled $2.6 million as of September 30, 2021, and $2.8 million as of December 31, 2020, with $25 thousand of specific reserves allocated to those loans at September 30, 2021 and $30 thousand at December 31, 2020, respectively. On September 30, 2021, $2.5 million of the loans classified as TDRs were performing in accordance with their modified terms. The remaining $108 thousand were classified as nonaccrual.

Loan modifications considered TDRs completed during the three and nine-months ended September 30 were as follows:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 3 - LOANS (continued)

The loans restructured were modified by changing the monthly payment to interest only and modifying the maturity dates.

None of the loans restructured in 2020 have defaulted in the three or nine-months ended 2021. None of the loans restructured in 2019 defaulted in 2020.

There was no other real estate owned on September 30, 2021 and December 31, 2020. There were no mortgage loans in the process of foreclosure on September 30, 2021 and $21 thousand on December 31, 2020. There were repossessed assets of $33 thousand on September 30, 2021 and none on December 31, 2020.

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 commitment greater than $500 thousand. The Company uses the following definitions for risk ratings:

Pass. Loans classified as pass (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. Assets assigned a Special Mention grade are not considered classified assets but are considered criticized. These assets exhibit potential weaknesses that, deserve management's close attention. If left uncorrected, those potential weaknesses may result in deterioration of the repayment prospects for the 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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 3 - LOANS (continued)

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 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 known facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass rated loans. Loans listed as not rated annually are either less than $500 thousand or are included in groups of homogeneous loans. Based on the most recent analysis performed, the risk category of loans by class is as follows as of September 30, 2021 and December 31, 2020:

The following table presents loans that are not rated by class of loans as of September 30, 2021 and December 31, 2020. Nonperforming loans include loans past due 90 days or more and loans on nonaccrual of interest status.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 4 - SHORT-TERM BORROWINGS

The following table provides additional detail regarding repurchase agreements and the related collateral accounted for as secured borrowings.

NOTE 5 - FAIR VALUE MEASUREMENTS

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 5 - FAIR VALUE MEASUREMENTS(CONTINUED)

The following table presents the assets reported on the Consolidated Balance Sheets at their fair value on a recurring basis as of September 30, 2021 and December 31, 2020 by level within the fair value hierarchy. No liabilities are carried at fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Equity securities with readily determinable values and U.S. Treasury Notes are valued at the closing price reported on the active market on which the individual securities are traded. Obligations of U.S. government agencies, mortgage-backed securities, asset-backed securities, obligations of states and political subdivisions and corporate bonds are valued at observable market data for similar assets. Equity securities without readily determinable values are carried at amortized cost adjusted for impairment and observable price changes and are not included in the table below.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 5 - FAIR VALUE MEASUREMENTS(CONTINUED)

There were no assets measured on a nonrecurring basis at September 30, 2021. The following table presents the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of December 31, 2020, by level within the fair value hierarchy. An impaired loan is written down to fair value through the establishment of specific reserves or a charge down is taken to reduce the loan to fair value of the collateral (less estimated selling costs) and the loan is included in the following table as a Level III measurement. Techniques used to value the collateral that secure the impaired loans include quoted market prices for identical assets classified as Level I inputs, and observable inputs, employed by certified appraisers, for similar assets classified as Level II inputs. In cases where valuation techniques included inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level III inputs.

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 6 - FAIR VALUES OF FINANCIAL INSTRUMENTS

The fair values of recognized financial instruments as of September 30, 2021 and December 31, 2020 are as follows:

The Company also has unrecognized financial instruments on September 30, 2021 and December 31, 2020. These financial instruments relate to commitments to extend credit and letters of credit. The aggregate contract amount of such financial instruments was approximately $246 million on September 30, 2021 and $228 million on December 31, 2020. Such amounts are also considered to be the fair values.

The fair value estimates of financial instruments are made at a specific point in time based on relevant market information. Since no ready market exists for a significant portion of the financial instruments, fair value estimates are largely based on judgments after considering such factors as future expected credit losses, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 7- ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the changes in accumulated other comprehensive income (loss) by component net of tax for the three and nine months ended September 30, 2021 and 2020:

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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, 2021 as compared to December 31, 2020, and the consolidated results of operations for the three and nine months ended September 30, 2021 compared to the same periods in 2020. 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.

FORWARD-LOOKING STATEMENTS

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.

FINANCIAL CONDITION

Total assets were $1.1 billionat September 30, 2021 as compared to $1.0 billion at December 31, 2020. During the nine months ended September 30, 2021, net loans decreased $62 million. Cash and cash equivalents, and securities increased $139 million. Deposits and short-term borrowings increased $78 million.

Net loans decreased $62 million, or 10%, as commercial real estate and construction loans increased $10 million, or 4%, and residential real estate loans decreased $9 million, or 5%, from December 31, 2020. Commercial loans decreased $63 million, or 33%, including $53 million in PPP loans forgiven by the SBA. Loans originated under SBA Paycheck Protection Program totaled $37 million during 2021 and $92 million during 2020. Consumer refinance activity slowed on mortgage loans and home purchase activity remained robust despite limited inventory through the first nine months of 2021. Residential mortgage loan originations for the nine months ended September 30, 2021 totaled $49 million, a decrease from $54 million in originations during the nine months ended September 30, 2020. Originations sold into the secondary market were $36 million and $38 million, respectively during the nine months ended September 30, 2021 and September 30, 2020. The Bank originates and sells primarily fixed rate thirty-year mortgages into the secondary market.

The allowance for loan losses decreased $710 thousand from the year ago quarter to $7.6 million. The Company has not early adopted CECL which has been delayed for smaller reporting companies. Year over year outstanding loan balances decreased 13% to $538 million at September 30, 2021. Net recoveries were $26 thousand, or an annualized -0.01% of average loans, in the current nine-month period compared to a $66 thousand net recovery, or -0.01% of average loans in the year-ago nine-month period. At September 30, 2021, the allowance for total loans minus the SBA guaranteed Payroll Protection loans was 1.44%. We believe the allowance level is appropriate given the low level of problem loans and current composition of the overall loan portfolio in the current economic environment.

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CSB BANCORP, INC.

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

Nonperforming loans decreased $3.2millionto $1.3million, or 0.24%,of total loans from $4.5 million, or 0.65%,at December 31, 2020.For the nine months ended September 30, 2021loans totaling $329thousand were placed on nonaccrual status,$1.8 millionin paydownswere received, and the bank returned $1.6 million back to accrual status due to ongoing payment performance.

The ratio of gross loans to deposits was 56.4% at September 30, 2021, compared to 68.3% at December 31, 2020.

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 $2.8 million within the available-for-sale and held-to-maturity portfolios as of September 30, 2021, was primarily the result of current market yields compared to the yields at the time the investments were purchased by the Company and not due to credit quality. As a result, all embedded security losses on September 30, 2021, are considered temporary and no impairment loss relating to these securities has been recognized.

Deposits increased $77 million, or 9%, from December 31, 2020 with noninterest-bearing deposits increasing approximately $32 million and interest-bearing deposit accounts increasing approximately $45 million. Total deposits as of September 30, 2021 are $969 million, or 15%, greater than September 30, 2020 deposit balances. On a year over year comparison, increases were recognized in noninterest-bearing demand deposits of $51 million, interest-bearing demand deposits of $23 million, money market accounts of $14 million, savings of $40 million, and time deposits declined by $1 million. During 2020 and continuing into 2021, the Bank's customers increased 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 increased $915 thousand to $38 million at September 30, 2021 as compared to December 31, 2020 and other borrowings decreased $1 million as the Company repaid FHLB advances.

Total shareholders' equity amounted to $97.1 million, or 8.7%, of total assets at September 30, 2021, an increase of $3.2 million, from $93.9 million December 31, 2020. The increase in shareholders' equity during the nine months ended September 30, 2021 was due to net income of $8.5 million partially offset by declared dividends of $2.5 million, other comprehensive loss of $2.2 million and the repurchase of treasury shares for $644 thousand. The Company and the Bank met all regulatory capital requirements at September 30, 2021.

RESULTS OF OPERATIONS

Three months ended September 30, 2021 and 2020

For the quarters ended September 30, 2021 and 2020, the Company recorded net income of $2.9 million and $2.8 million and $1.06 and $1.02 per share, respectively. The $101 thousand increase in net income for the period was primarily the result of a recovery of provision for loan losses of $587 thousand and a $284 thousand increase in net interest income. The increases were partially offset by an increase in noninterest expenses of $663 thousand, a $94 thousand decrease in noninterest income and a $13 thousand increase in the federal income tax provision. Return on average assets and return on average equity were 1.03% and 11.79%, respectively, for the three-month period of 2021, compared to 1.14% and 12.19%, respectively for the same quarter in 2020.

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CSB BANCORP, INC.

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

Average Balance Sheets and Net Interest Margin Analysis

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

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

³ Average loan balances include nonaccrual loans.

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

Interest income for the quarter ended September 30, 2021, was $7.8 million representing a $91 thousand increase, or 1%, compared to the same period in 2020. This increase was primarily due to the increase in security and interest earning deposit balance volume in the comparable periods. Average loan rates increased 51 basis points for the quarter ended September 30, 2021 as compared to the same period in 2020. Interest expense for the quarter ended September 30, 2021 was $480 thousand, a decrease of $193 thousand, or 29%, from the same quarter in 2020. The decrease in interest expense occurred primarily due to a decrease on all rates on interest-bearing liabilities for the quarter ended September 30, 2021, partially offset by increases in the average deposit balances.

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CSB BANCORP, INC.

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

For the quarter ended September 30, 2021, with strengthening economic conditions and improving credit quality, the bank recognized a recovery for loan losses of $210 thousand to the provision for loan losses, compared to a provision for loan losses of $377 thousand for the same quarter in 2020. The Company's provision for loan losses for the three months ended September 30, 2020, reflected the unknown COVID-19 pandemic and an elevated qualitative factor adjustment ("Q-factor") under managements estimate of loss at that time. The recapture of provision for loan losses for the current quarter primarily reflects the improvement in credit quality including the reduction of impaired and adversely classified loans, as well as the improvement in economic indicators including unemployment, residential real estate prices and consumer confidence and a $63 million decrease of loans over December 31, 2020. 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.

Noninterest income for the quarter ended September 30, 2021, was $1.8 million, a decrease of $94 thousand, or 5%, compared to the same quarter in 2020. The gain on the sale of mortgage loans into the secondary market decreased by $297 thousand for the quarter ended September 30, 2021 as fewer loans were sold into the secondary market due to decreasing demand for mortgage refinancing and declining inventories of homes available for sale. Debit card interchange income increased $82 thousand, or 19%, with greater fees generated from usage in the third quarter 2021. Earnings on bank owned life insurance increased $32 thousand, or 24%, for the third quarter 2021, a result of adding policies in 2021 and fourth quarter 2020. Fees from trust and brokerage services amounted to $252 thousand for the second quarter 2021, an increase of $16 thousand, or 7%, as compared to the same quarter in 2020. Service charges on deposit accounts decreased $2 thousand, or less than 1%, compared to the same quarter in 2020.

Noninterest expenses for the quarter ended September 30, 2021 increased $663 thousand, or 13%, compared to the third quarter 2020. Salaries and employee benefits increased $269 thousand, or 9%, a result of increases recognized in base wage, incentive and retirement accruals, and social security benefits. The provision for unfunded loan commitments increased $193 thousand over the prior year's quarter with additional provision recorded for unfunded construction loans within the assisted/senior living sector that have been adversely affected by COVID-19. FDIC assessment amounted to $130 thousand as compared to $91 thousand in the third quarter 2020 due to small bank assessment credits being utilized in 2020. Marketing and public relations expense increased $51 thousand, or 53%, primarily due to more events taking place after being cancelled due to COVID-19. Software expense rose $49 thousand, or 18%, quarter over quarter with additional investment. Occupancy expense increased $24 thousand in 2021 over the third quarter 2020. The Ohio financial institutions tax increased $17 thousand in the third quarter due to the Company's increased capital base. Debit card expenses increased $16 thousand, or 10%, compared to the third quarter 2020 with increased volume. Professional and director fees decreased $52 thousand for the quarter ended September 30, 2021 as compared to the third quarter 2020. This decrease resulted from a collection of legal fees on a nonperforming loan that exited the bank.

Federal income tax expense increased $13 thousand, or 2%, for the quarter ended September 30, 2021 as compared to the third quarter 2020. The provision for income taxes was $689 thousand (effective rate of 19.2%) for the quarter ended September 30, 2021, compared to $676 thousand (effective rate of 19.4%) for the same quarter ended 2020.

RESULTS OF OPERATIONS

Nine months ended September 30, 2021 and 2020

For the nine months ended September 30, 2021 and 2020, the Company recorded net income of $8.5 million and $7.9 million and $3.12 and $2.88 per share, respectively. The $642 thousand increase in net income for the nine-month period was primarily the result of a recovery for loan losses of $655 thousand for the period as compared to a provision for loan losses of $1.3 million for the same period in 2020. Other income increased $643 thousand. The increases were partially offset by an increase of $1.6 million in noninterest expense, a $165 thousand decrease in net interest income, and an $145 thousand increase in the federal income tax provision.

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CSB BANCORP, INC.

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

Return on average assets and return on average equity were 1.03% and 11.91%, respectively, for the ninemonths ended September 30, 2021, compared to 1.17% and 11.80%, respectively for the same period in 2020.

Average Balance Sheets and Net Interest Margin Analysis

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

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

³ Average loan balances include nonaccrual loans.

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

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CSB BANCORP, INC.

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

Interest income for the ninemonths ended September30, 2021, was $22.4million representing a $862 thousanddecrease, or a 4% decline, compared to the same period in 2020. This decrease was primarily due to yield decreases as follows: 64basis points in average tax-exempt securities, 65basis points in average taxable security yields, and 22basis points in interest-earning deposits in other banks for the period endedSeptember30, 2021as compared to the same period in 2020. Partially offset by an increase in balance of taxable securities. Interest expense for the ninemonths ended September30, 2021was $1.6million, a decrease of $697thousand, or 30%, from the same period in 2020. The decrease in interest expense occurred primarily due to a decrease in rates on all interest-bearing liabilities for the ninemonths ended September30, 2021, partially offset by increases in the average balancesof savings and interest-bearing demand deposits.

For the nine months ended September 30, 2021, the provision for loan losses was a recovery of provision of $655 thousand, compared to a provision of $1.3 million for the same period in 2020. For more discussion see Results of Operations, three months. 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.

Noninterest income for the nine months ended September 30, 2021, was $5.5 million, an increase of $643 thousand, or 13%, compared to the same period in 2020. Debit card interchange income increased $303 thousand, or 25%, with increased card usage in the first nine months of 2021. Fees from trust and brokerage services increased $136 thousand for the period. Earnings on bank owned life insurance policies increased $67 thousand for the period with the additional purchase of $2 million in policies in 2021. Service charges on deposit accounts decreased $77 thousand, or 10%, compared to the same period in 2020 primarily from decreases in overdraft fees. The gain on the sale of mortgage loans to the secondary market decreased $15 thousand to $1.2 million for the nine months ended September 30, 2021.

Noninterest expenses for the nine months ended September 30, 2021 increased $1.6 million, or 11%, compared to the same period in 2020. Salaries and employee benefits increased $698 thousand, or 8%, a result increased salary, with additions to lending staff, social security tax, and reduced capitalization of deferred loan costs with less volume originated in commercial and mortgage loans. FDIC assessment increased $255 thousand in 2021 as the small bank credits have expired. Software expense increased $199 thousand, or 26%, due to increased expenses with backup redundancy, multifactor authentication, and online banking enhancements. Debit card expenses increased $73 thousand, or 16%, compared to the prior period in 2020. Occupancy expense increased $60 thousand over the same period in 2020 with an increase in depreciation, maintenance, and supplies expense. Marketing and public relations expense increased $35 thousand, or 12%, with marketing, brand recognition initiatives, and community support in the company's market increasing in volume due to increasing opportunities presenting after previous cancellations due to COVID-19. Professional and director fees decreased $12 thousand for the nine months ended September 30, 2021 as compared to the same period in 2020 with the collection of legal expense of a nonperforming credit exiting the bank.

Federal income tax expense increased $145 thousand, or 8%, for the nine months ended September 30, 2021 as compared to the same period in 2020. The provision for income taxes was $2.0 million (effective rate of 19.3%) for the nine months ended September 30, 2021, compared to $1.9 million (effective rate of 19.3%) for the same period ended 2020.

CAPITAL RESOURCES

The Company maintained a strong capital position with tangible common equity to tangible assets of 8.4% at September 30, 2021 compared with 8.7% at December 31, 2020.

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 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 common equity tier 1 ("CET1") ratio of at least 6.5% and must not be subject to any order or directive requiring

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CSB BANCORP, INC.

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

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 as presented in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. As of September 30, 2021, the Company and the Bank met all capital adequacy requirements to which they were subject.

During October 2019, the federal banking agencies adopted an optional community bank leverage ratio ("CBLR"). Depository institutions and depository institution holding companies, that have less than $10 billion in total consolidated assets and have a tier 1 leverage ratio of greater than 9 percent, are considered qualifying community banking organizations and are eligible to opt into the community bank leverage ratio framework. Additionally, such insured depository institutions are considered to have satisfied the risk-based and leverage capital requirements and will be considered well-capitalized under the rule, effective January 1, 2020. The Company has not elected to opt-in to the CBLR framework as of September 30, 2021.

LIQUIDITY

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.

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CSB BANCORP, INC.

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

The growth in core deposits was largely a result of PPP loan funds deposited into customer accounts and an increase in general customer liquidity due to reduced business investment and consumer spending during the COVID-19 pandemic.

Off-Balance Sheet Arrangements

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.

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CSB BANCORP, INC.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The COVID-19 pandemic added market risk disclosure which should be read with the disclosures presented in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020. While 2020 began with increased loan demand and strong employment, the economic picture reversed sharply as coronavirus wreaked havoc and became the lead story by mid-March. A series of emergency health orders for public safety curtailed nonessential activity and had the effect of shutting down vast swaths of Ohio's economy, resulting in a peak of approximately one million people on unemployment, or an unemployment rate of 17.6%, in Ohio during April of 2020. By September 2021, Ohio's unemployment rate approximated 4.6%. The bank is based in Holmes County which is reporting the lowest unemployment rate in Ohio at 2.6% in September 2021. Of the counties within the bank's footprint, Stark County reported the highest unemployment rate at 4.8% in September. With vaccination rates and government stimulus funds slowing, the Federal Reserve is projecting bottlenecks, hiring difficulties, and other constraints as well as the possibility that inflation could turn out to be higher and more persistent than expected. The effects of the pandemic on the economy have continued to diminish but risks to the economy remain.

Management performs a quarterly analysis of the Company's interest rate risk over a twenty-four month horizon. The analysis includes two balance sheet models, one based on a static balance sheet and one on a dynamic balance sheet with projected growth in assets and liabilities. All balance sheet positions and interest rate projections are currently within the Company's board-approved policy for the first twelve- month period. For the twenty-four month periods in the rising interest rate scenarios the increase in interest income is favorably above board policy limits.

The following table presents an analysis of the estimated sensitivity of the Company's annual net interest income to sudden and sustained -200 through +400 basis point changes, in 100 basis point increments, in market interest rates at September 30, 2021 and December 31, 2020. The net interest income reflected is for the first twelve-month period of the modeled twenty-four month horizon. The underlying balance sheet for illustrative purposes is dynamic with projected growth in assets and liabilities.

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CSB BANCORP, INC.

CONTROLS AND PROCEDURES

ITEM 4 - CONTROLS AND PROCEDURES

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:

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

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.

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CSB BANCORP, INC.

FORM 10-Q

Quarter ended September 30, 2021

PART II - OTHER INFORMATION

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, 2020, other than the COVID-19 developments previously discussed under Item 3 - Quantitative and Qualitative Disclosures About Market Risk in Part I of this report.

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

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. The Company repurchased 8,720 shares under the repurchase authorization during the quarterly period ended September 30, 2021.

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES.

Not applicable.

ITEM 4 - MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5 - OTHER INFORMATION.

Not applicable.

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CSB BANCORP, INC.

FORM 10-Q

Quarter ended September 30, 2021

PART II - OTHER INFORMATION

ITEM 6 - Exhibits.

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CSB BANCORP, INC.

SIGNATURES

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

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