10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended: June 30, 2015

OR

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

Commission file number: 0-21714

CSB Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Ohio	34-1687530
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

91 North Clay, P.O. Box 232, Millersburg, Ohio 44654

(Address of principal executive offices)

(330) 674-9015

(Registrant’s telephone number)

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  x    No  ¨

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

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

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

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

Indicate the number of shares outstanding of the registrant’s common stock, as of the latest practicable date.

Common stock, $6.25 par value	Outstanding at August 1, 2015:
	2,739,405 common shares

CSB BANCORP, INC.

FORM 10-Q

QUARTER ENDED June 30, 2015

Table of Contents

			Page
ITEM 1	–	FINANCIAL STATEMENTS (Unaudited)
Consolidated Balance Sheets				3
Consolidated Statements of Income				4
Consolidated Statements of Comprehensive Income				5
Condensed Consolidated Statements of Changes in Shareholders’ Equity				6
Condensed Consolidated Statements of Cash Flows				7
Notes to Consolidated Financial Statements				8
ITEM 2	–	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		27
ITEM 3	–	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		34
ITEM 4	–	CONTROLS AND PROCEDURES		35
Part II – Other Information
ITEM 1	–	Legal Proceedings.		36
ITEM 1A	–	Risk Factors		36
ITEM 2	–	Unregistered Sales of Equity Securities and Use of Proceeds		36
ITEM 3	–	Defaults upon Senior Securities		36
ITEM 4	–	Mine Safety Disclosures		36
ITEM 5	–	Other Information		36
ITEM 6	–	Exhibits		37
Signatures				38

2

CSB BANCORP, INC.

PART I – FINANCIAL INFORMATION

ITEM 1. – FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)	June 30, 2015			December 31, 2014
ASSETS
Cash and cash equivalents
Cash and due from banks	$	15,244		$	15,310
Interest-earning deposits in other banks		23,672			28,613
Total cash and cash equivalents		38,916			43,923
Securities
Available-for-sale, at fair value		107,409			100,108
Held-to-maturity; fair value of $33,553 in 2015 and $38,950 in 2014		33,554			38,316
Restricted stock, at cost		4,614			4,614
Total securities		145,577			143,038
Loans held for sale		63			75
Loans		415,198			410,903
Less allowance for loan losses		4,656			4,381
Net loans		410,542			406,522
Premises and equipment, net		8,374			8,286
Core deposit intangible		566			629
Goodwill		4,728			4,728
Bank-owned life insurance		9,948			9,815
Accrued interest receivable and other assets		4,242			3,965
TOTAL ASSETS	$	622,956		$	620,981
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits
Noninterest-bearing	$	139,603		$	139,251
Interest-bearing		356,801			360,824
Total deposits		496,404			500,075
Short-term borrowings		51,702			46,627
Other borrowings		13,738			14,953
Accrued interest payable and other liabilities		2,146			1,876
Total liabilities		563,990			563,531
SHAREHOLDERS’ EQUITY
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares; outstanding 2,739,405 shares in 2015 and 2014		18,629			18,629
Additional paid-in capital		9,884			9,884
Retained earnings		35,908			34,090
Treasury stock at cost - 241,197 shares in 2015 and 2014		(4,871	)		(4,871	)
Accumulated other comprehensive loss		(584	)		(282	)
Total shareholders’ equity		58,966			57,450
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	622,956		$	620,981

See notes to unaudited consolidated financial statements.

3

CSB BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands, except per share data)	2015		2014		2015		2014
INTEREST AND DIVIDEND INCOME
Loans, including fees	$	4,744	$	4,631	$	9,318	$	9,060
Taxable securities		670		736		1,357		1,522
Nontaxable securities		137		115		267		230
Other		17		2		33		8
Total interest and dividend income		5,568		5,484		10,975		10,820
INTEREST EXPENSE
Deposits		272		289		544		593
Short-term borrowings		18		22		34		41
Other borrowings		103		128		208		243
Total interest expense		393		439		786		877
NET INTEREST INCOME		5,175		5,045		10,189		9,943
PROVISION FOR LOAN LOSSES		195		150		389		335
Net interest income, after provision for loan losses		4,980		4,895		9,800		9,608
NONINTEREST INCOME
Service charges on deposit accounts		315		316		601		613
Trust services		243		202		445		418
Debit card interchange fees		246		233		473		431
Securities gains		21		133		56		133
Gain on sale of loans, net		122		44		192		68
Other income		233		231		467		449
Total noninterest income		1,180		1,159		2,234		2,112
NONINTEREST EXPENSES
Salaries and employee benefits		2,224		2,110		4,374		4,129
Occupancy expense		258		240		524		506
Equipment expense		165		188		331		369
Professional and director fees		202		214		492		396
Franchise tax expense		100		106		199		213
Marketing and public relations		99		98		175		206
Software expense		213		172		402		334
Debit card expense		108		92		208		189
Amortization of intangible assets		31		33		63		65
FDIC insurance expense		90		91		182		177
Other expenses		484		505		972		942
Total noninterest expenses		3,974		3,849		7,922		7,526
Income before income taxes		2,186		2,205		4,112		4,194
FEDERAL INCOME TAX PROVISION		669		683		1,253		1,256
NET INCOME	$	1,517	$	1,522	$	2,859	$	2,938
Basic and diluted net earnings per share	$	0.55	$	0.55	$	1.04	$	1.07

See notes to unaudited consolidated financial statements.

4

CSB BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2015			2014			2015			2014
Net income	$	1,517		$	1,522		$	2,859		$	2,938
Other comprehensive income (loss)
Unrealized gains (losses) arising during the period		(1,386	)		583			(618	)		1,356
Amounts reclassified from accumulated other comprehensive income, held-to-maturity		162			51			216			104
Income tax effect		416			(214	)		137			(496	)
Reclassification adjustment for gains on available-for- sale securities included in net income		(21	)		(133	)		(56	)		(133	)
Income tax effect		7			45			19			45
Other comprehensive income		(822	)		332			(302	)		876
Total comprehensive income	$	695		$	1,854		$	2,557		$	3,814

See notes to unaudited consolidated financial statements.

5

CSB BANCORP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands, except per share data)	2015			2014			2015			2014
Balance at beginning of period	$	58,791		$	53,879		$	57,450		$	52,411
Net income		1,517			1,522			2,859			2,938
Other comprehensive income (loss)		(822	)		332			(302	)		876
Stock options exercised 451 shares issued in 2014		—			(1	)		—			(1	)
Cash dividends declared		(520	)		(493	)		(1,041	)		(985	)
Balance at end of period	$	58,966		$	55,239		$	58,966		$	55,239
Cash dividends declared per share	$	0.19		$	0.18		$	0.38		$	0.36

See notes to unaudited consolidated financial statements.

6

CSB BANCORP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended June 30,
(Dollars in thousands)	2015			2014
NET CASH FROM OPERATING ACTIVITIES	$	3,639		$	2,326
CASH FLOWS FROM INVESTING ACTIVITIES
Securities:
Proceeds from repayments, held-to-maturity		8,945			5,481
Proceeds from maturities and repayments, available-for-sale		15,394			9,605
Purchases, available-for-sale		(25,088	)		(2,535	)
Purchases, held-to-maturity		(4,000	)		—
Proceeds from sale of available-for-sale securities		1,576			2,483
Proceeds from redemption of restricted stock		—			850
Loan originations, net of repayments		(4,697	)		(33,112	)
Property, equipment, and software acquisitions		(444	)		(268	)
Net cash used in investing activities		(8,314	)		(17,496	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits		(3,671	)		2,745
Net change in short-term borrowings		5,075			1,852
Net change in other borrowings		(1,215	)		4,821
Cash dividends paid		(521	)		(492	)
Stock options exercised		—			(1	)
Net cash (used in) provided by financing activities		(332	)		8,925
NET DECREASE IN CASH AND CASH EQUIVALENTS		(5,007	)		(6,245	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		43,923			42,599
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	38,916		$	36,354
SUPPLEMENTAL DISCLOSURES
Cash paid during the year for:
Interest	$	792		$	892
Income taxes		755			1,175
Noncash financing activities:
Dividends declared		520			493

See notes to unaudited consolidated financial statements.

7

CSB BANCORP, INC.

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 June 30, 2015, 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 (“U.S. GAAP”) have been omitted. The Annual Report for CSB for the year ended December 31, 2014, contains Consolidated Financial Statements and related footnote disclosures, which should be read in conjunction with the accompanying Consolidated Financial Statements. The results of operations for the period ended June 30, 2015 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.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. The Company has included the disclosures related to this Update in Note 3.

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

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014.

8

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (CONTINUED)

An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. The company has included the disclosures related to this Update in Note 4.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. This Update did not have a significant impact on the Company’s financial statements.

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

In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), as part of its initiative to reduce complexity in accounting standards. This guidance will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments in this Update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. For public business entities, the FASB decided that the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the amendments will be effective for annual periods beginning after December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. Early adoption is permitted for all entities. This Update is not expected to have a significant impact on the Company’s financial statements.

In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements. The amendments in this Update represent changes to clarify the FASB Accounting Standards Codification (“Codification”), correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Transition guidance varies based on the amendments in this Update. The amendments in this Update that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon the issuance of this Update. This Update is not expected to have a significant impact on the Company’s financial statements.

9

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SECURITIES

Securities consist of the following at March 31, 2015 and December 31, 2014:

(Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
June 30, 2015
Available-for-sale
U.S. Treasury security	$	1,003	$	1	$	—	$	1,004
U.S. Government agencies		29,646		12		247		29,411
Mortgage-backed securities of government agencies		48,911		615		210		49,316
Other mortgage-backed securities		122		2		—		124
Asset-backed securities of government agencies		1,538		12		—		1,550
State and political subdivisions		20,826		305		228		20,903
Corporate bonds		5,034		16		14		5,036
Equity securities		65		—		—		65
Total available-for-sale		107,145		963		699		107,409
Held-to-maturity securities
U.S. Government agencies		13,478		210		85		13,603
Mortgage-backed securities of government agencies		20,076		71		197		19,950
Total held-to-maturity		33,554		281		282		33,553
Restricted stock		4,614		—		—		4,614
Total securities	$	145,313	$	1,244	$	981	$	145,576
December 31, 2014
Available-for-sale
U.S. Treasury security	$	1,004	$	—	$	4	$	1,000
U.S. Government agencies		25,228		6		155		25,079
Mortgage-backed securities of government agencies		47,696		730		79		48,347
Other mortgage-backed securities		139		2		—		141
Asset-backed securities of government agencies		2,606		3		5		2,604
State and political subdivisions		17,878		433		44		18,267
Corporate bonds		4,503		40		1		4,542
Equity securities		106		22		—		128
Total available-for-sale		99,160		1,236		288		100,108
Held-to-maturity securities
U.S. Government agencies		16,343		294		2		16,635
Mortgage-backed securities of government agencies		21,973		398		56		22,315
Total held-to-maturity		38,316		692		58		38,950
Restricted stock		4,614		—		—		4,614
Total securities	$	142,090	$	1,928	$	346	$	143,672

10

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SECURITIES (CONTINUED)

The amortized cost and fair value of debt securities at June 30, 2015, 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	$	2,649	$	2,665
Due after one through five years		18,739		18,845
Due after five through ten years		30,049		29,974
Due after ten years		55,643		55,860
Total debt securities available-for-sale	$	107,080	$	107,344
Held-to-maturity:
Due in one year or less	$	—	$	—
Due after one through five years		—		—
Due after five through ten years		7,769		7,794
Due after ten years		25,785		25,759
Total debt securities held-to-maturity	$	33,554	$	33,553

Securities with a carrying value of approximately $94.7 million and $88.4 million were pledged at June 30, 2015 and December 31, 2014, 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 at June 30, 2015 and December 31, 2014. Federal Reserve Bank stock was $471 thousand at June 30, 2015 and December 31, 2014.

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

	Three months ended June 30,				Six months ended June 30,
(Dollars in thousands)	2015		2014		2015		2014
Proceeds	$	1,488	$	2,483	$	1,576	$	2,483
Realized gains		21		133		56		133
Realized losses		—		—		—		—
Net securities gains	$	21	$	133	$	56	$	133

The income tax provision applicable to realized gains amounted to $7 and $45 thousand for the three month periods ending June 30, 2015 and 2014, respectively. The income tax provision applicable to realized gains amounted to $19 thousand and $45 thousand for the six month periods ending June 30, 2015 and 2014, respectively. There were no tax benefits recognized from realized losses in 2015 or 2014.

11

CSB BANCORP, INC.

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, at June 30, 2015 and December 31, 2014:

	Securities in a continuous unrealized loss position
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value
June 30, 2015
Available-for-sale
U.S. Government agencies	$	161	$	11,482	$	86	$	5,914	$	247	$	17,396
Mortgage-backed securities of government agencies		210		14,130		—		—		210		14,130
State and political subdivisions		209		8,857		19		677		228		9,534
Corporate bonds		14		486		—		—		14		486
Held-to-maturity
U.S. Government agencies		85		3,915		—		—		85		3,915
Mortgage-backed securities of government agencies		197		14,478		—		—		197		14,478
Total temporarily impaired securities	$	876	$	53,348	$	105	$	6,591	$	981	$	59,939
December 31, 2014
Available-for-sale
U.S. Treasury security	$	4	$	1,000	$	—	$	—	$	4	$	1,000
U.S. Government agencies		12		5,188		143		5,856		155		11,044
Mortgage-backed securities of government agencies		40		6,348		39		4,939		79		11,287
Asset-backed securities of government agencies		5		1,603		—		—		5		1,603
State and political subdivisions		13		1,300		31		1,416		44		2,716
Corporate bonds		1		499		—		—		1		499
Held-to-maturity
U.S. Government agencies		2		998		—		—		2		998
Mortgage-backed securities of government agencies		—		—		56		9,265		56		9,265
Total temporarily impaired securities	$	77	$	16,936	$	269	$	21,476	$	346	$	38,412

There were fifty-six (56) securities in an unrealized loss position at June 30, 2015, ten (10) 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 at June 30, 2015.

12

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 – LOANS

Loans consist of the following:

(Dollars in thousands)	June 30, 2015		December 31, 2014
Commercial	$	127,878	$	123,813
Commercial real estate		140,482		139,695
Residential real estate		122,732		121,684
Construction & land development		15,195		17,446
Consumer		8,534		7,913
Total loans before deferred costs		414,821		410,551
Deferred loan costs		377		352
Total Loans	$	415,198	$	410,903

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 or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. At June 30, 2015 and December 31, 2014, approximately 77% of the outstanding principal balance of the Company’s commercial real estate loans were secured by owner-occupied properties.

With respect to loans to developers and builders that are secured by non-owner occupied properties, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction and land development loans are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction and land development loans are generally based upon estimates of costs and value associated with the completed project. These estimates may be inaccurate.

13

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 be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.

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

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

Loans serviced for others approximated $75.5 million and $70.6 million at June 30, 2015 and December 31, 2014, respectively.

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 industrial and commercial real estate loans. As of June 30, 2015 and December 31, 2014, there were no concentrations of loans related to any single industry.

Allowance for Loan Losses

The following tables detail activity in the allowance for loan losses by portfolio segment for the three and six month periods ended June 30, 2015 and 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

The changes in the provision for loan losses for the three and six month periods of 2015 related to commercial and industrial and commercial real estate loans were primarily due to the increase in loan balances in the first quarter of 2015 and the subsequent decrease in these loan balances in the second quarter of 2015. The increase in the provision related to consumer loans for the six months ended June 30, 2015 was due to charge-offs of loans in that category and increasing loan volumes.

The increase in the provision for possible loan losses during 2014 related to commercial and industrial loans was due to the increase in specific allocation amounts related to impaired and special mention loans and also the increase in loan balances. The increase in the provision related to commercial real estate loans was affected by an increase in the historical loss rate of this loan type, increase in loan balances, and charge-offs that occurred during the six months ended June 30, 2014. The decrease in the provision related to construction and land development loans relates primarily to the decrease in loan volume due to completion of construction projects and loans being moved to permanent financing.

14

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 – LOANS (CONTINUED)

(Dollars in thousands)	Commercial			Commercial Real Estate			Residential Real Estate			Construction & Land Development			Consumer			Unallocated			Total
Three months ended June 30, 2015
Beginning balance	$	1,394		$	1,574		$	1,003		$	133		$	69		$	321		$	4,494
Provision for possible loan losses		(43	)		(99	)		8			(8	)		8			329			195
Charge-offs		(3	)		(16	)		(17	)		—			(4	)					(40	)
Recoveries		6			—			—			—			1						7
Net charge-offs		3			(16	)		(17	)		—			(3	)					(33	)
Ending balance	$	1,354		$	1,459		$	994		$	125		$	74		$	650		$	4,656
Six months ended June 30, 2015
Beginning balance	$	1,289		$	1,524		$	1,039		$	142		$	60		$	327		$	4,381
Provision for possible loan losses		58			(35	)		16			(17	)		44			323			389
Charge-offs		(5	)		(40	)		(70	)		—			(34	)					(149	)
Recoveries		12			10			9			—			4						35
Net charge-offs		7			(30	)		(61	)		—			(30	)					(114	)
Ending balance	$	1,354		$	1,459		$	994		$	125		$	74		$	650		$	4,656
Three months ended June 30, 2014
Beginning balance	$	1,141		$	2,192		$	1,054		$	145		$	77		$	456		$	5,065
Provision for possible loan losses		182			51			102			(94	)		(37	)		(54	)		150
Charge-offs		(5	)		(156	)		(2	)		—			—						(163	)
Recoveries		4			—			3			—			4						11
Net charge-offs		(1	)		(156	)		1			—			4						(152	)
Ending balance	$	1,322		$	2,087		$	1,157		$	51		$	44		$	402		$	5,063
Six months ended June 30, 2014
Beginning balance	$	1,219		$	1,872		$	1,205		$	178		$	91		$	520		$	5,085
Provision for possible loan losses		113			568			(49	)		(127	)		(52	)		(118	)		335
Charge-offs		(18	)		(353	)		(6	)		—			(3	)					(380	)
Recoveries		8			—			7			—			8						23
Net charge-offs		(10	)		(353	)		1			—			5						(357	)
Ending balance	$	1,322		$	2,087		$	1,157		$	51		$	44		$	402		$	5,063

15

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 – LOANS (CONTINUED)

The following table presents the balance in the allowance for loan losses and the ending loan balances by portfolio segment and based on the impairment method as of June 30, 2015 and December 31, 2014:

(Dollars in thousands)	Commercial		Commercial Real Estate		Residential Real Estate		Construction		Consumer		Unallocated		Total
June 30, 2015
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	71	$	30	$	—	$	—	$	—		101
Collectively evaluated for impairment		1,354		1,388		964		125		74		650		4,555
Total ending allowance balance	$	1,354	$	1,459	$	994	$	125	$	74	$	650		4,656
Loans:
Loans individually evaluated for impairment	$	2,187	$	4,944	$	1,823	$	—	$	—				8,954
Loans collectively evaluated for impairment		125,691		135,538		120,909		15,195		8,534				405,867
Total ending loans balance	$	127,878	$	140,482	$	122,732	$	15,195	$	8,534				414,821
December 31, 2014
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	109	$	75	$	—	$	—	$	—		184
Collectively evaluated for impairment		1,289		1,415		964		142		60		327		4,197
Total ending allowance balance	$	1,289	$	1,524	$	1,039	$	142	$	60	$	327		4,381
Loans:
Loans individually evaluated for impairment	$	5,922	$	1,679	$	1,612	$	—	$	—				9,213
Loans collectively evaluated for impairment		117,891		138,016		120,072		17,446		7,913				401,338
Total ending loans balance	$	123,813	$	139,695	$	121,684	$	17,446	$	7,913				410,551

16

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 June 30, 2015 and December 31, 2014:

(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance
June 30, 2015
Commercial	$	6,728	$	5,542	$	11	$	5,553	$	—
Commercial real estate		1,814		1,029		564		1,593		71
Residential real estate		2,000		1,104		723		1,827		30
Total impaired loans	$	10,542	$	7,675	$	1,298	$	8,973	$	101
December 31, 2014
Commercial	$	7,011	$	5,889	$	37	$	5,926	$	—
Commercial real estate		1,836		950		728		1,678		109
Residential real estate		1,721		885		730		1,615		75
Total impaired loans	$	10,568	$	7,724	$	1,495	$	9,219	$	184

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

	Three months ended June 30,				Six months ended June 30,
(Dollars in thousands)	2015		2014		2015		2014
Average recorded investment:
Commercial	$	6,137	$	6,983	$	5,998	$	6,593
Commercial real estate		1,606		3,486		1,655		3,591
Residential real estate		1,729		1,838		1,674		1,861
Average recorded investment in impaired loans	$	9,472	$	12,307	$	9,327	$	12,045
Interest income recognized:
Commercial	$	54	$	41	$	105	$	102
Commercial real estate		4		35		9		70
Residential real estate		19		16		35		31
Interest income recognized on a cash basis on impaired loans	$	77	$	92	$	149	$	203

17

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 June 30, 2015 and December 31, 2014 by class of 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
June 30, 2015
Commercial	$	126,693	$	149	$	228	$	—	$	808	$	1,185	$	127,878
Commercial real estate		138,747		280		4		—		1,451		1,735		140,482
Residential real estate		121,380		463		43		163		683		1,352		122,732
Construction & land development		15,195		—		—		—		—		—		15,195
Consumer		8,394		128		—		12		—		140		8,534
Total Loans	$	410,409	$	1,020	$	275	$	175	$	2,942	$	4,412	$	414,821
December 31, 2014
Commercial	$	122,283	$	362	$	96	$	1	$	1,071	$	1,530	$	123,813
Commercial real estate		137,683		174		104		—		1,734		2,012		139,695
Residential real estate		120,025		424		92		280		863		1,659		121,684
Construction & land development		17,431		—		15		—		—		15		17,446
Consumer		7,798		73		42		—		—		115		7,913
Total Loans	$	405,220	$	1,033	$	349	$	281	$	3,668	$	5,331	$	410,551

18

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 $7.0 million as of June 30, 2015, and $6.8 million as of December 31, 2014, with $39 thousand and $88 thousand of specific reserves allocated to those loans, respectively. At June 30, 2015, $6.6 million of the loans classified as TDR’s were performing in accordance with their modified terms. Of the remaining $404 thousand, all were in nonaccrual of interest status.

The Company held no foreclosed real estate as of June 30, 2015 or December 31, 2014. Consumer mortgage loans in the process of foreclosure were $280 thousand at June 30, 2015 and $139 thousand at December 31, 2014.

The following table presents loans restructured during the three and six month period ended June 30, 2015 and the three and six month periods June 30, 2014.

(Dollars in thousands)	Number of loans restructured		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
For the three months ended June 30, 2015
Residential Real Estate		3	$	266	$	266
Total Restructured Loans		3	$	266	$	266
For the six months ended June 30, 2015
Residential Real Estate		4	$	295	$	295
Total Restructured Loans		4	$	295	$	295
For the three months ended June 30, 2014
Residential Real Estate		—	$	—	$	—
Total Restructured Loans		—	$	—	$	—
For the six months ended June 30, 2014
Residential Real Estate		1	$	84	$	84
Total Restructured Loans		1	$	84	$	84

The loans restructured were modified by changing the monthly payment to interest only. No principal reduction was made. None of the loans that were restructured in 2013 or 2014 have subsequently defaulted in the six month periods ended June 30, 2015 and 2014.

19

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 commercial loans with an outstanding balance greater than $300 thousand. This analysis is performed on an annual basis. The Company uses the following definitions for risk ratings:

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

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

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the 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 facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $300 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 June 30, 2015 and December 31, 2014:

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
June 30, 2015
Commercial	$	113,532	$	5,884	$	7,633	$	—	$	829	$	127,878
Commercial real estate		132,100		4,259		3,120		—		1,003		140,482
Residential real estate		204		—		37		—		122,491		122,732
Construction & land development		11,850		1,376		—		—		1,969		15,195
Consumer		—		—		—		—		8,534		8,534
Total	$	257,686	$	11,519	$	10,790	$	—	$	134,826	$	414,821
December 31, 2014
Commercial	$	112,467	$	3,809	$	6,690	$	—	$	847	$	123,813
Commercial real estate		129,792		4,898		3,634		—		1,371		139,695
Residential real estate		209		—		39		—		121,436		121,684
Construction & land development		13,889		1,579		—		—		1,978		17,446
Consumer		—		—		—		—		7,913		7,913
Total	$	256,357	$	10,286	$	10,363	$	—	$	133,545	$	410,551

20

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3 – LOANS (CONTINUED)

The following table presents loans that are not rated by class of loans as of June 30, 2015 and December 31, 2014. Nonperforming loans include loans past due 90 days or more and loans on nonaccrual of interest status.

(Dollars in thousands)	Performing		Non-Performing		Total
June 30, 2015
Commercial	$	829	$	—	$	829
Commercial real estate		1,003		—		1,003
Residential real estate		121,682		809		122,491
Construction & land development		1,969		—		1,969
Consumer		8,522		12		8,534
Total	$	134,005	$	821	$	134,826
December 31, 2014
Commercial	$	847	$	—	$	847
Commercial real estate		1,371		—		1,371
Residential real estate		120,332		1,104		121,436
Construction & land development		1,978		—		1,978
Consumer		7,913		—		7,913
Total	$	132,441	$	1,104	$	133,545

NOTE 4 – SHORT-TERM BORROWINGS

The following table provides additional detail regarding repurchase agreements accounted for as secured borrowings.

	Overnight and Continuous
(Dollars in thousands)	June 30, 2015		December 31, 2014
Securities of U.S. Government Agencies pledged	$	51,935	$	46,842
Repurchase agreements	$	51,702	$	46,627

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:

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.

21

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 5- FAIR VALUE MEASUREMENTS (CONTINUED)

The following table presents the assets reported on the Consolidated Balance Sheet at their fair value as of June 30, 2015 and December 31, 2014 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 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.

(Dollars in thousands)	Level I		Level II		Level III		Total
June 30, 2015
Assets:
Securities available-for-sale
U.S. Treasury security	$	1,004	$	—	$	—	$	1,004
U.S. Government agencies		—		29,411		—		29,411
Mortgage-backed securities of government agencies		—		49,316		—		49,316
Other mortgage-backed securities		—		124		—		124
Asset-backed securities of government agencies		—		1,550		—		1,550
State and political subdivisions		—		20,903		—		20,903
Corporate bonds		—		5,036		—		5,036
Total debt securities		1,004		106,340		—		107,344
Equity securities		65		—		—		65
Total available-for-sale securities	$	1,069	$	106,340	$	—	$	107,409
December 31, 2014
Assets:
Securities available-for-sale
U.S. Treasury security	$	1,000	$	—	$	—	$	1,000
U.S. Government agencies		—		25,079		—		25,079
Mortgage-backed securities of government agencies		—		48,347		—		48,347
Other mortgage-backed securities		—		141		—		141
Asset-backed securities of government agencies		—		2,604		—		2,604
State and political subdivisions		—		18,267		—		18,267
Corporate bonds		—		4,542		—		4,542
Total debt securities		1,000		98,980		—		99,980
Equity securities		128		—		—		128
Total available-for-sale securities	$	1,128	$	98,980	$	—	$	100,108

The following table presents the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of June 30, 2015 and December 31, 2014, by level within the fair value hierarchy. Impaired loans are written down to fair value through the establishment of specific reserves. 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.

22

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 5- FAIR VALUE MEASUREMENTS (CONTINUED)

(Dollars in thousands)	Level I		Level II		Level III		Total
June 30, 2015
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	8,853	$	8,853
December 31, 2014
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	9,029	$	9,029

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

	Quantitative Information about Level III Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
(Dollars in thousands)
June 30, 2015
Impaired loans	$	6,687	Discounted cash flow	Remaining term Discount rate	4 mos to 30 yrs (76 months) 3.1% to 9.8% (4.5%)
		2,166	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expense (2)	0% to -35% (-25%) -10% (-10%)
December 31, 2014
Impaired loans	$	6,539	Discounted cash flow	Remaining term Discount rate	2 mos to 28 yrs / (62 mos) 3.1% to 8.3% / (4.6%)
		2,490	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expense (2)	-20% to -25% (-24%) -10% (-10%)

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

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

23

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 6 – FAIR VALUES OF FINANCIAL INSTRUMENTS

The estimated fair values of recognized financial instruments as of June 30, 2015 and December 31, 2014 are as follows:

(Dollars in thousands)	Carrying Value		Level 1		Level II		Level III		Total Fair Value
June 30, 2015
Financial assets:
Cash and cash equivalents	$	38,916	$	38,916	$	—	$	—	$	38,916
Securities available-for-sale		107,409		1,069		106,340		—		107,409
Securities held-to-maturity		33,554		—		33,553		—		33,553
Restricted stock		4,614		4,614		—		—		4,614
Loans held for sale		63		63		—		—		63
Net loans		410,542		—		—		415,442		415,442
Bank-owned life insurance		9,948		9,948		—		—		9,948
Accrued interest receivable		1,306		1,306		—		—		1,306
Mortgage servicing rights		236		—		—		236		236
Financial liabilities:
Deposits	$	496,404	$	370,618	$	—	$	126,462	$	497,080
Short-term borrowings		51,702		51,702		—		—		51,702
Other borrowings		13,738		—		—		14,142		14,142
Accrued interest payable		78		78		—		—		78
December 31, 2014
Financial assets:
Cash and cash equivalents	$	43,923	$	43,923	$	—	$	—	$	43,923
Securities available-for-sale		100,108		1,128		98,980		—		100,108
Securities held-to-maturity		38,316		—		38,950		—		38,950
Restricted stock		4,614		4,614		—		—		4,614
Loans held for sale		75		75		—		—		75
Net loans		406,522		—		—		411,168		411,168
Bank-owned life insurance		9,815		9,815		—		—		9,815
Accrued interest receivable		1,329		1,329		—		—		1,329
Mortgage servicing rights		222		—		—		222		222
Financial liabilities:
Deposits	$	500,075	$	372,312	$	—	$	128,445	$	500,757
Short-term borrowings		46,627		46,627		—		—		46,627
Other borrowings		14,953		—		—		15,348		15,348
Accrued interest payable		84		84		—		—		84

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

Cash and cash equivalents; Loans held for sale; Accrued interest receivable; Short-term borrowings and Accrued interest payable

The fair value of the above instruments is considered to be carrying value, classified as Level I in the fair value hierarchy.

24

CSB BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 6 – FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

Securities

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

Net loans

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

Bank-owned life insurance

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

Restricted stock

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

Mortgage servicing rights

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

Deposits

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

Other borrowings

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

The Company also has unrecognized financial instruments at June 30, 2015 and December 31, 2014. These financial instruments relate to commitments to extend credit and letters of credit. The aggregated contract amount of such financial instruments was approximately $134 million at June 30, 2015 and $128 million at December 31, 2014. Such amounts are also considered to be the estimated fair values.

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

25

CSB BANCORP, INC.

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 six month periods ended June 30, 2015 and 2014:

(Dollars in thousands)	Pretax			Tax (Expense) Benefit			After-tax			Affected Line Item in the Consolidated Statements of Income
Three months ended June 30, 2015
Balance as of March 31, 2015	$	360		$	(122	)	$	238
Unrealized holding loss on available-for-sale securities arising during the period		(1,386	)		471			(915	)
Reclassify gain included in income		(21	)		7			(14	)	(a, b)
Amortization of held-to-maturity discount resulting from transfer		162			(55	)		107		(c)
Total other comprehensive income		(1,245	)		423			(822	)
Balance as of June 30, 2015	$	(885	)	$	301		$	(584	)
Six months ended June 30, 2015
Balance as of December 31, 2014	$	(427	)	$	145		$	(282	)
Unrealized holding loss on available-for-sale securities arising during the period		(618	)		210			(408	)
Reclassify gain included in income		(56	)		19			(37	)	(a, b)
Amortization of held-to-maturity discount resulting from transfer		216			(73	)		143		(c)
Total other comprehensive income		(458	)		156			(302	)
Balance as of June 30, 2015	$	(885	)	$	301		$	(584	)
Three months ended June 30, 2014
Balance as of March 31, 2014	$	(1,381	)	$	469		$	(912	)
Unrealized holding gain on available-for-sale securities arising during the period		583			(197	)		386
Reclassify gain included in income		(133	)		45			(88	)	(a, b)
Amortization of held-to-maturity discount resulting from transfer		51			(17	)		34		(c)
Total other comprehensive income		501			(169	)		332
Balance as of June 30, 2014	$	(880	)	$	300		$	(580	)
Six months ended June 30, 2014
Balance as of December 31, 2013	$	(2,207	)	$	751		$	(1,456	)
Unrealized holding gain on available-for-sale securities arising during the period		1,356			(461	)		895
Reclassify gain included in income		(133	)		45			(88	)	(a, b)
Amortization of held-to-maturity discount resulting from transfer		104			(35	)		69		(c)
Total other comprehensive income		1,327			(451	)		876
Balance as of June 30, 2014	$	(880	)	$	300		$	(580	)

(a) Securities gains

(b) Federal Income Tax Provision

(c) There was no income statement effect from the transfer of securities to held-to-maturity.

26

CSB BANCORP, INC.

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 June 30, 2015 as compared to December 31, 2014, and the consolidated results of operations for the three and six month periods ended June 30, 2015 compared to the same periods in 2014. 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 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 $623 million at June 30, 2015, compared to $621 million at December 31, 2014, representing an increase of $2 million, or less than 1%. This growth was funded by a $5 million increase in short-term borrowings during the six month period ended June 30, 2015. Loans and securities increased by $4 million and $3 million respectively, during the six month period while cash and cash equivalents decreased $5 million, or 11%.

Net loans increased $4 million, or 1%, during the six months ended June 30, 2015. Commercial loans including commercial real estate loans increased $5 million, or 2%, while construction and land development loans decreased $2 million, or 13%, with construction projects transferring to permanent financing during the six month period. Residential real estate loans increased $1 million, or 1%, and consumer loans increased 8% from December 31, 2014. Home purchase activity has increased and consumers continued to refinance their mortgage loans for lower long-term rates. Residential mortgage loan originations for the six months ended June 30, 2015 were $15 million as compared to $16 million for the prior year six month period. Originations sold into the secondary market were $6 million during the six month period ended June 30, 2015 as compared to $2 million during the six months ended June 30, 2014. The Bank originates and sells fixed-rate thirty year mortgages into the secondary market.

The allowance for loan losses as a percentage of total loans was 1.12% at June 30, 2015 as compared to 1.07% at December 31, 2014. Outstanding loan balances increased 1% to $415 million at June 30, 2015. A provision of $389 thousand, offset by net charge-offs of $114 thousand, increased the allowance for loan losses for the six months ended June 30, 2015.

27

CSB BANCORP, INC.

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

Nonaccrual loans decreased during second quarter 2015. For the six months ending June 30, 2015 new loans totaling $99 thousand were placed on nonaccrual status, $93 thousand in charge-offs were recognized, $104 thousand was returned to accrual status and pay downs of $629 thousand were received during the six month period on loans in nonaccrual status.

	June 30,			December 31,			June 30,
(Dollars in thousands)	2015			2014			2014
Non-performing loans	$	3,117		$	3,949		$	5,031
Other real estate		—			—			—
Allowance for loan losses		4,656			4,381			5,063
Total loans		415,198			410,903			411,930
Allowance: Loans		1.12	%		1.07	%		1.23	%
Allowance: Non-performing loans		1.5	x		1.1	x		1.0	x

The ratio of gross loans to deposits was 84% at June 30, 2015, compared to 82% at December 31, 2014. The increase in this ratio is the result of loan volume increases during the six months ended June 30, 2015.

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 $981 thousand within the available-for-sale and held-to-maturity portfolios as of June 30, 2015, were primarily the result of customary and expected fluctuations in the bond market and not necessarily the expected cash flows of the individual securities. As a result, all security impairments on June 30, 2015, are considered temporary and no impairment loss relating to these securities has been recognized.

Deposits decreased $4 million, or less than 1%, from December 31, 2014 with noninterest bearing deposits increasing $352 thousand and interest-bearing deposit accounts decreasing $4 million. Total deposits as of June 30, 2015 are $13 million greater than June 30, 2014 deposit balances. On a year over year comparison, increases were recognized in every deposit category except for interest-bearing demand deposits and time deposits under $100 thousand.

Short-term borrowings consisting of overnight repurchase agreements with retail customers increased $5 million at June 30, 2015 from December 31, 2014 and other borrowings decreased $1 million as the Company repaid FHLB advances with required monthly amortization.

Total shareholders’ equity amounted to $59.0 million, or 9.5% of total assets, at June 30, 2015, compared to $57.5 million, or 9.3% of total assets, at December 31, 2014. The increase in shareholders’ equity during the six months ending June 30, 2015 was due to net income of $2.9 million which was partially offset by other comprehensive losses of $302 thousand and dividends declared of $1.0 million. The Company and the Bank met all regulatory capital requirements at June 30, 2015.

RESULTS OF OPERATIONS

Three months ended June 30, 2015 and 2014

For the quarters ended June 30, 2015 and 2014, the Company recorded net income of $1.5 million or $0.55 per share. The $5 thousand decrease in net income for the quarter was primarily the result of noninterest expenses increasing $125 thousand and a $45 thousand increase in provision for loan losses. These increases were partially offset by an increase in net interest income of $130 thousand and noninterest income of $21 thousand. Return on average assets and return on average equity were 0.97% and 10.23%, respectively, for the three month period of 2015, compared to 1.02% and 11.09%, respectively for the same quarter in 2014.

28

CSB BANCORP, INC.

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

Average Balance Sheets and Net Interest Margin Analysis

	For the three months ended June 30,
	2015					2014
(Dollars in thousands)	Average balance		Average rate			Average balance		Average rate
ASSETS
Interest-earning deposits in other banks	$	22,496		0.29	%	$	4,137		0.19	%
Federal funds sold		951		0.23			82		0.28
Taxable securities		127,134		2.11			130,171		2.27
Tax-exempt securities		20,536		4.05			15,657		4.46
Loans		417,347		4.57			411,016		4.53
Total earning assets		588,464		3.85	%		561,063		3.97	%
Other assets		36,568					37,030
TOTAL ASSETS	$	625,032				$	598,093
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing demand deposits	$	78,180		0.04	%	$	73,147		0.06	%
Savings deposits		156,168		0.07			149,799		0.09
Time deposits		126,795		0.75			129,245		0.75
Other borrowed funds		64,620		0.75			72,303		0.83
Total interest bearing liabilities		425,763		0.37	%		424,494		0.41	%
Non-interest bearing demand deposits		138,014					116,647
Other liabilities		1,782					1,900
Shareholders’ Equity		59,473					55,052
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	625,032				$	598,093
Taxable equivalent net interest spread				3.48	%				3.56	%
Taxable equivalent net interest margin				3.58	%				3.66	%

Interest income for the quarter ended June 30, 2015, was $5.6 million representing an $84 thousand increase, or a 2% improvement, compared to the same period in 2014. This increase was primarily due to average loan volume increasing $6 million for the quarter ended June 30, 2015 as compared to the second quarter 2014. Interest expense for the quarter ended June 30, 2015 was $393 thousand, a decrease of $46 thousand, or 10%, from the same period in 2014. The decrease in interest expense occurred primarily due to a decrease of 0.03% in interest rates paid on interest-bearing deposits which decreased from 0.33% in 2014 to 0.30% in 2015 and a rate decrease of 0.08% on all other borrowings which declined from 0.83% in 2014 to 0.75% for the quarter ended June 30, 2015.

The provision for loan losses for the quarter ended June 30, 2015 was $195 thousand, compared to a $150 thousand provision for the same quarter in 2014. 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 June 30, 2015, was $1.2 million, an increase of $21 thousand, or 2%, compared to the same quarter in 2014. There was a gain of $21 thousand on sale of investments during second quarter 2015 as compared to a $133 thousand gain on sale of investments in the second quarter 2014. Service charges on deposit accounts decreased $1 thousand, or less than 1%, compared to the same quarter in 2014 primarily from decreases in overdraft fees. Debit card interchange income increased $13 thousand, or 6%, with greater fee income. Fees from trust and brokerage services increased $41 thousand to $243 thousand for the second quarter 2015 as compared to the same quarter in 2014. The gain on the sale of mortgage loans to the secondary market increased to $122 thousand for the quarter ending June 30, 2015, from $44 thousand in the same quarter in 2014. The gain in 2015 was greater due to an additional volume of loans sold during the second quarter 2015.

29

CSB BANCORP, INC.

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

Noninterest expenses for the quarter ended June 30, 2015 increased $125 thousand, or 3%, compared to the second quarter of 2014. Salaries and employee benefits increased $114 thousand, or 5%, a result of increases in salary and medical benefits. Professional and director fees decreased $12 thousand during for the quarter ended June 30, 2015 as compared to second quarter 2014. Occupancy and equipment expenses decreased $5 thousand in 2015 over the second quarter of 2014. Software expenses increased $41 thousand, or 24%, compared to the second quarter 2014 as a result of discounts received in 2014 on the core system software that have ended in 2015.

Federal income tax expense decreased $14 thousand, or 2%, for the quarter ended June 30, 2015 as compared to the second quarter of 2014. The provision for income taxes was $669 thousand (effective rate of 31%) for the quarter ended June 30, 2015, compared to $683 thousand (effective rate of 31%) for the same quarter ended 2014.

RESULTS OF OPERATIONS

Six months ended June 30, 2015 and 2014

Net income for the six months ended June 30, 2015, was $2.9 million or $1.04 per share, as compared to $2.9 million or $1.07 per share during the same period in 2014. Return on average assets and return on average equity were 0.92% and 9.79%, respectively, for the six month period of 2015, compared to 1.00% and 10.90%, respectively for 2014.

Comparative net income decreased as noninterest expenses increased $396 thousand or 5% for the six month period in 2015 as compared to 2014. The provision for loan losses increased $54 thousand or 16% during the same comparative period. Improvements to net income occurred as net interest income increased to $10.2 million for the six months ended June 30, 2015, an increase of $246 thousand or 2% from the same period last year. Noninterest income improved $122 thousand to $2.2 million or 6% for the six month period ending in 2015 as compared to 2014.

Interest income on loans increased $258 thousand, or 3%, for the six months ended June 30, 2015, as compared to the same period in 2014. This increase was primarily due to an average volume increase of $12 million for the comparable six month periods. Interest income on securities decreased $128 thousand, or 7%, as the average yield on securities dropped .11% to 2.42% on a fully taxable equivalent basis and the volume of securities decreased $2 million for the comparable six month periods. Interest income on fed funds sold and interest bearing deposits increased $25 thousand for the six months ended June 30, 2015 as the average fed funds sold and due from banks interest bearing balances increased $19 million, compared to the same period in 2014.

30

CSB BANCORP, INC.

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

Average Balance Sheet and Net Interest Margin Analysis

	For the six months ended June 30,
	2015					2014
(Dollars in thousands)	Average balance		Average rate			Average balance		Average rate
ASSETS
Due from banks-interest bearing	$	23,300		0.27	%	$	5,533		0.29	%
Federal funds sold		1,033		0.23			89		0.23
Taxable securities		127,395		2.15			133,468		2.30
Tax-exempt securities		19,685		4.14			15,640		4.49
Loans		416,062		4.53			403,563		4.54
Total earning assets		587,475		3.82	%		558,293		3.96	%
Other assets		36,325					36,262
TOTAL ASSETS	$	623,800				$	594,555
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing demand deposits	$	76,458		0.03	%	$	72,730		0.06	%
Savings deposits		157,796		0.07			150,984		0.09
Time deposits		126,935		0.75			130,261		0.78
Other borrowed funds		64,549		0.76			68,575		0.84
Total interest bearing liabilities		425,738		0.37	%		422,550		0.42	%
Non-interest bearing demand deposits		137,218					115,683
Other liabilities		1,932					1,951
Shareholders’ Equity		58,912					54,371
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	623,800				$	594,555
Taxable equivalent net interest spread				3.45	%				3.54	%
Taxable equivalent net interest margin				3.55	%				3.64	%

Interest expense decreased $91 thousand to $786 thousand for the six months ended June 30, 2015, compared to the same period in 2014. Interest expense on deposits decreased $49 thousand, or 8%, from the same period as last year, while interest expense on short-term and other borrowings decreased $42 thousand or 15%. The decrease in interest expense has been caused by lower interest rates being paid across the board on interest-bearing deposit accounts and borrowings. Additionally, during the comparable six month periods, the Company grew non-interest bearing deposits by $22 million in 2015. Time deposits continue to renew at lower interest rates, and some depositors have moved monies to savings instruments anticipating higher rates than time deposits. 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 decreased by 9 basis points for the six month period ended June 30, 2015, to 3.55%, from 3.64% for the same period in 2014. This margin decrease is primarily the result of decreased interest yields and the change in the asset mix to a greater percentage of overnight funds.

The provision for loan losses was $389 thousand during the six months of 2015, compared to $335 thousand in the same six month period of 2014. 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 $122 thousand during the six months ended June 30, 2015, as compared to the same period in 2014. Gain on the sale of investments decreased by $77 thousand for the six months ended June 30, 2015 as compared to the same period in 2014. Debit card interchange income increased $42 thousand or 10% as a result of increased servicer revenue during the six months of 2015. Service charges on deposits decreased $12 thousand from the same period in 2014 reflecting a decrease in overdraft fees based on volume.

31

CSB BANCORP, INC.

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

Increases were recognized in gains on mortgage loans sold in the secondary market on a year over year basis as home purchase activity increased in a low interest environment.

Non-interest expenses increased $396 thousand, or 5%, for the six months ended June 30, 2015, compared to the same period in 2014. Professional fees increased $96 thousand, or 24%, as a one-time expense of $110 thousand was incurred during first quarter 2015 to contract a professional firm to assist the company with assessment of market opportunities and long-term strategic goals. Loan legal and collection fees were $86 thousand for the six month period ended June 30, 2015 as compared to a $67 thousand recognized for the six months ended June 30, 2014 as expense recoveries were recognized in 2014. Software expense increased $68 thousand for the six month period in 2015 as compared to the same period in 2014 reflecting the cost and amortization of the new core system that was installed in fourth quarter 2013. The Bank’s FDIC deposit premium increased $5 thousand to $182 thousand for the six months ended 2015 reflecting an increase in assets for the six months ended June 30, 2015 as compared to 2014. Salaries and employee benefits increased $245 thousand, or 6%, primarily the result of salary and medical benefit increases. Occupancy and equipment expense decreased $20 thousand, or 2%, reflecting a decrease in small equipment purchases and equipment lease expense when compared to 2014.

The provision for income taxes was $1.3 million (effective rate of 30%) for the six months ended June 30, 2015, compared to $1.3 million (effective rate of 30%) for the same period in 2014.

CAPITAL RESOURCES

CSB maintained a strong capital position with tangible common equity to tangible assets of 8.69% at June 30, 2015 compared with 8.26% at June 30, 2014.

The Board of Governors of the Federal Reserve System (the “Federal Reserve”) adopted risk-based capital guidelines on July 2, 2013 for bank holding companies and state member banks, designed to improve the level and quality of capital. CSB became subject to the new capital and risk weighting rules on January 1, 2015 with its first reporting period on March 31, 2015. 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 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 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 as presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. As of June 30, 2015 the Company and the Bank met all capital adequacy requirements to which they were subject.

32

CSB BANCORP, INC.

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

	Capital Ratios
	June 30, 2015			December 31, 2014
CET1
Consolidated		12.5	%		NA
Bank		12.3	%		NA
Tier 1 ratio
Consolidated		12.5	%		12.5	%
Bank		12.3	%		12.3	%
Total Capital
Consolidated		13.6	%		13.6	%
Bank		13.4	%		13.4	%

LIQUIDITY

(Dollars in millions)	June 30, 2015			December 31, 2014			Change
Cash and cash equivalents	$	39		$	44		$	(5	)
Unused lines of credit		52			46			6
Unpledged securities at fair market value		48			48			—
	$	139		$	138		$	1
Net deposits and short-term liabilities	$	490		$	497		$	(7	)
Liquidity ratio		28.5	%		27.9	%		0.6
Minimum board approved liquidity ratio		20.0	%		20.0	%		—

Liquidity refers to the Company’s ability to generate sufficient cash to fund current loan demand, meet deposit withdrawals, pay operating expenses and meet other obligations. 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 28.5% and 27.9% at June 30, 2015 and December 31, 2014.

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.

33

CSB BANCORP, INC.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3 –QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the quantitative and qualitative disclosures about market risks as of June 30, 2015, from the disclosures presented in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

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 positions are currently within the Company’s board-approved policy.

The following table presents an analysis of the estimated sensitivity of the Company’s annual net interest income to sudden and sustained -100 through +400 basis point changes, in 100 basis point increments, in market interest rates at June 30, 2015 and December 31, 2014. 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.

June 30, 2015
(Dollars in thousands)
Change in Interest Rates (basis points)	Net Interest Income		Dollar Change			Percentage Change			Board Policy Limits
+400	$	21,871	$	1,252			6.1	%		+/-25	%
+300		21,525		906			4.4			+/-15
+200		21,161		542			2.6			+/-10
+100		20,839		220			1.1			+/-5
0		20,619		—			—
-100		20,354		(265	)		(1.3	)		+/-5
December 31, 2014
+400	$	21,408	$	1,144			5.6	%		+/-25	%
+300		21,082		818			4.0			+/-15
+200		20,766		502			2.5			+/-10
+100		20,454		190			0.9			+/-5
0		20,264		—			—
-100		20,022		(242	)		(1.1	)		+/-5

34

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:

(a) information required to be disclosed by the Company in this Quarterly Report on Form 10-Q would be accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure;

(b) information required to be disclosed by the Company in this Quarterly Report on Form 10-Q would be recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms; and

(c) the Company’s disclosure controls and procedures are effective as of the end of the period covered by this Quarterly Report on Form 10-Q to ensure that material information relating to the Company and its consolidated subsidiary is made known to them, particularly during the period for which the Company’s periodic reports, including this Quarterly Report on Form 10-Q, are being prepared.

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.

35

CSB BANCORP, INC.

FORM 10-Q

Quarter ended June 30, 2015

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, 2014.

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 June 30, 2015.

ITEM 3- DEFAULTS UPON SENIOR SECURITIES.

Not applicable.

ITEM 4- MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5- OTHER INFORMATION.

Not applicable.

36

CSB BANCORP, INC.

FORM 10-Q

Quarter ended June 30, 2015

PART II – OTHER INFORMATION

ITEM 6- Exhibits.

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).
3.2	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).
4.0	Specimen stock certificate (incorporated by reference to Registrant’s Form 10-SB).
11	Statement Regarding Computation of Per Share Earnings.
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 from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 formatted in XBRL (extensible Business Reporting Language): (i) Consolidated Balance Sheets: (ii) Consolidated Statements of Income: (iii) Consolidated Statements of Comprehensive Income: (iv) Condensed Consolidated Statements of Changes in Shareholders’ Equity: (v) Condensed Consolidated Statements of Cash Flows: and (vi) Notes to Consolidated Financial Statements.

37

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.

	CSB BANCORP, INC.
	(Registrant)
Date: August 13, 2015	/s/ Eddie L. Steiner
	Eddie L. Steiner
	President
	Chief Executive Officer
Date: August 13, 2015	/s/ Paula J. Meiler
	Paula J. Meiler
	Senior Vice President
	Chief Financial Officer

38

CSB BANCORP, INC.

INDEX TO EXHIBITS

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).
3.2	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).
4.0	Specimen stock certificate (incorporated by reference to Registrant’s Form 10-SB).
11	Statement Regarding Computation of Per Share Earnings.
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 from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 formatted in XBRL (extensible Business Reporting Language): (i) Consolidated Balance Sheets: (ii) Consolidated Statements of Income: (iii) Consolidated Statements of Comprehensive Income: (iv) Condensed Consolidated Statements of Changes in Shareholders’ Equity: (v) Condensed Consolidated Statements of Cash Flows: and (vi) Notes to Consolidated Financial Statements.

39

EX-11

CSB BANCORP, INC.

EXHIBIT 11

STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS

	Three months ended				Six months ended
	June 30,				June 30,
(Dollars in thousands)	2015		2014		2015		2014
Basic Earnings Per Share
Net income	$	1,517	$	1,522	$	2,859	$	2,938
Weighted average common shares		2,739,405		2,737,085		2,739,405		2,736,861
Basic Earnings Per Share	$	0.55	$	0.55	$	1.04	$	1.07
Diluted Earnings Per Share
Net income	$	1,517	$	1,522	$	2,859	$	2,938
Weighted average common shares		2,739,405		2,737,085		2,739,405		2,736,861
Weighted average effect of assumed stock options		3,333		2,883		2,976		2,575
Total		2,742,738		2,739,968		2,742,381		2,739,436
Diluted Earnings Per Share	$	0.55	$	0.55	$	1.04	$	1.07

EX-31.1

CSB BANCORP, INC.

EXHIBIT 31.1

Rule 13a-14(a)/15d-14(a) Certification

President and Chief Executive Officer

I, Eddie L. Steiner, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: August 13, 2015

/s/ Eddie L. Steiner

Eddie L. Steiner

President and

Chief Executive Officer

EX-31.2

CSB BANCORP, INC.

EXHIBIT 31.2

Rule 13a-14(a)/15d-14(a) Certification

Senior Vice President and Chief Financial Officer

I, Paula J. Meiler, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: August 13, 2015

/s/ Paula J. Meiler

Paula J. Meiler

Senior Vice President and

Chief Financial Officer

EX-32.1

CSB BANCORP, INC.

EXHIBIT 32.1

SECTION 1350 CERTIFICATION

In connection with the quarterly report of CSB Bancorp, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof, (the “Report”), I, Eddie L. Steiner, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

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

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

Dated: August 13, 2015

/s/ Eddie L. Steiner

Eddie L. Steiner

President and

Chief Executive Officer

* This certification is being furnished as required by Rule 13a-14(b) under the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code, and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing.

EX-32.2

CSB BANCORP, INC.

EXHIBIT 32.2

SECTION 1350 CERTIFICATION

In connection with the quarterly report of CSB Bancorp, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof, (the “Report”), I, Paula J. Meiler, Senior Vice President and Chief Financial Officer, of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

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

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

Dated: August 13, 2015

/s/ Paula J. Meiler

Paula J. Meiler

Senior Vice President and

Chief Financial Officer

* This certification is being furnished as required by Rule 13a-14(b) under the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code, and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing.

XML

Fair Value Measurements - Additional Information (Detail) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Liabilities carried at fair value	$ 0	$ 0

XML

Loans - Schedule of Average Recorded Investment in Impaired Loans and Related Interest Income Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Average recorded investment:
Average recorded investment in impaired loans	$ 9,472	$ 12,307	$ 9,327	$ 12,045
Interest income recognized:
Interest income recognized on a cash basis on impaired loans	77	92	149	203
Commercial [Member]
Average recorded investment:
Average recorded investment in impaired loans	6,137	6,983	5,998	6,593
Interest income recognized:
Interest income recognized on a cash basis on impaired loans	54	41	105	102
Commercial Real Estate [Member]
Average recorded investment:
Average recorded investment in impaired loans	1,606	3,486	1,655	3,591
Interest income recognized:
Interest income recognized on a cash basis on impaired loans	4	35	9	70
Residential Real Estate [Member]
Average recorded investment:
Average recorded investment in impaired loans	1,729	1,838	1,674	1,861
Interest income recognized:
Interest income recognized on a cash basis on impaired loans	$ 19	$ 16	$ 35	$ 31

XML

Securities - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Carrying value of pledged securities	$ 94,700,000		$ 94,700,000		$ 88,400,000
Restricted stock investment in FHLB stock	4,100,000		4,100,000		4,100,000
Federal Reserve Bank stock	471,000		471,000		$ 471,000
Income tax provision applicable to realized gains	7,000	$ 45,000	19,000	$ 45,000
Income tax benefit on realized losses	$ 0	$ 0	$ 0	$ 0

XML

Fair Value Measurements - Schedule of Quantitative Information of Assets Measured at Fair Value on Nonrecurring Basis (Detail) - Impaired Loans [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Level III [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value estimate	$ 6,687	$ 6,539
Level III [Member] | Appraisal of Collateral [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value estimate	2,166	2,490
Fair Value, Measurements, Nonrecurring [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value estimate	8,853	9,029
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value estimate	$ 8,853	$ 9,029
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Discounted Cash Flow [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Remaining term	4 months	2 months
Discount rate	3.10%	3.10%
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Discounted Cash Flow [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Remaining term	30 years	28 years
Discount rate	9.80%	8.30%
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Discounted Cash Flow [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Remaining term	76 months	62 months
Discount rate	4.50%	4.60%
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Appraisal of Collateral [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Liquidation expense	(10.00%)	(10.00%)
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Appraisal of Collateral [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Appraisal adjustments	0.00%	(20.00%)
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Appraisal of Collateral [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Appraisal adjustments	(35.00%)	(25.00%)
Fair Value, Measurements, Nonrecurring [Member] | Level III [Member] | Appraisal of Collateral [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Appraisal adjustments	(25.00%)	(24.00%)

XML

Loans - Schedule of Loans Not Rated by Class of Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	$ 134,826	$ 133,545
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	829	847
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,003	1,371
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	122,491	121,436
Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,969	1,978
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	8,534	7,913
Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	134,005	132,441
Performing [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	829	847
Performing [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,003	1,371
Performing [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	121,682	120,332
Performing [Member] | Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	1,969	1,978
Performing [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	8,522	7,913
Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	821	1,104
Nonperforming [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	809	$ 1,104
Nonperforming [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans not rated by class of loans	$ 12

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

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 June 30, 2015, 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 (“U.S. GAAP”) have been omitted. The Annual Report for CSB for the year ended December 31, 2014, contains Consolidated Financial Statements and related footnote disclosures, which should be read in conjunction with the accompanying Consolidated Financial Statements. The results of operations for the period ended June 30, 2015 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.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. The Company has included the disclosures related to this Update in Note 3.

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

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. The company has included the disclosures related to this Update in Note 4.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. This Update did not have a significant impact on the Company’s financial statements.

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

In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), as part of its initiative to reduce complexity in accounting standards. This guidance will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments in this Update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. For public business entities, the FASB decided that the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the amendments will be effective for annual periods beginning after December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. Early adoption is permitted for all entities. This Update is not expected to have a significant impact on the Company’s financial statements.

In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements. The amendments in this Update represent changes to clarify the FASB Accounting Standards Codification (“Codification”), correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Transition guidance varies based on the amendments in this Update. The amendments in this Update that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon the issuance of this Update. This Update is not expected to have a significant impact on the Company’s financial statements.

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Fair Values of Financial Instruments - Schedule of Estimated Fair Values of Recognized Financial Instruments (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financial assets:
Securities available-for-sale	$ 107,409	$ 100,108
Securities held-to-maturity	33,553	38,950
Bank-owned life insurance	9,948	9,815
Carrying Value [Member]
Financial assets:
Cash and cash equivalents	38,916	43,923
Securities available-for-sale	107,409	100,108
Securities held-to-maturity	33,554	38,316
Restricted stock	4,614	4,614
Loans held for sale	63	75
Net loans	410,542	406,522
Bank-owned life insurance	9,948	9,815
Accrued interest receivable	1,306	1,329
Financial liabilities:
Deposits	496,404	500,075
Short-term borrowings	51,702	46,627
Other borrowings	13,738	14,953
Accrued interest payable	78	84
Carrying Value [Member] | Mortgage Servicing Rights [Member]
Financial assets:
Mortgage servicing rights	236	222
Fair Value [Member]
Financial assets:
Cash and cash equivalents	38,916	43,923
Securities available-for-sale	107,409	100,108
Securities held-to-maturity	33,553	38,950
Restricted stock	4,614	4,614
Loans held for sale	63	75
Net loans	415,442	411,168
Bank-owned life insurance	9,948	9,815
Accrued interest receivable	1,306	1,329
Financial liabilities:
Deposits	497,080	500,757
Short-term borrowings	51,702	46,627
Other borrowings	14,142	15,348
Accrued interest payable	78	84
Fair Value [Member] | Mortgage Servicing Rights [Member]
Financial assets:
Mortgage servicing rights	236	222
Fair Value [Member] | Level I [Member]
Financial assets:
Cash and cash equivalents	38,916	43,923
Securities available-for-sale	1,069	1,128
Restricted stock	4,614	4,614
Loans held for sale	63	75
Bank-owned life insurance	9,948	9,815
Accrued interest receivable	1,306	1,329
Financial liabilities:
Deposits	370,618	372,312
Short-term borrowings	51,702	46,627
Accrued interest payable	78	84
Fair Value [Member] | Level II [Member]
Financial assets:
Securities available-for-sale	106,340	98,980
Securities held-to-maturity	33,553	38,950
Fair Value [Member] | Level III [Member]
Financial assets:
Net loans	415,442	411,168
Financial liabilities:
Deposits	126,462	128,445
Other borrowings	14,142	15,348
Fair Value [Member] | Level III [Member] | Mortgage Servicing Rights [Member]
Financial assets:
Mortgage servicing rights	$ 236	$ 222

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Loans - Additional Information (Detail) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of outstanding principal balances of commercial real estate loans secured by owner-occupied properties	77.00%		77.00%
Loans serviced for others	$ 75,500,000		$ 70,600,000
Concentrations of loans related to a single industry	0		0
Loans classified as troubled debt restructurings	7,000,000		6,800,000
Reserves allocated to customers whose loan terms are modified in troubled debt restructurings	39,000		88,000
Loans payable in nonaccrual of interest status	404,000
Foreclosed real estate	0		0
Consumer mortgage loans in process of foreclosure amount	280,000		$ 139,000
Loans restructured, subsequently defaulted	0	$ 0
Outstanding balance of commercial loans classified under credit risk, minimum amount	300,000
Loans listed as not rated under risk category, maximum amount	$ 300,000
Non-performing loans past due days and greater	90 days
Performing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans classified as troubled debt restructurings	$ 6,600,000

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Loans - Summary of Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	$ 414,821	$ 410,551
Deferred loan costs	377	352
Total loans	415,198	410,903
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	127,878	123,813
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	140,482	139,695
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	122,732	121,684
Construction & Land Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	15,195	17,446
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans before deferred costs	$ 8,534	$ 7,913

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Fair Values of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Commitments to extend credit and letters of credit	$ 134	$ 128

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Loans - Schedule of Allowances for Loan Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 4,494	$ 5,065	$ 4,381	$ 5,085
Provision for possible loan losses	195	150	389	335
Charge-offs	(40)	(163)	(149)	(380)
Recoveries	7	11	35	23
Net charge-offs	(33)	(152)	(114)	(357)
Ending balance	4,656	5,063	4,656	5,063
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1,394	1,141	1,289	1,219
Provision for possible loan losses	(43)	182	58	113
Charge-offs	(3)	(5)	(5)	(18)
Recoveries	6	4	12	8
Net charge-offs	3	(1)	7	(10)
Ending balance	1,354	1,322	1,354	1,322
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1,574	2,192	1,524	1,872
Provision for possible loan losses	(99)	51	(35)	568
Charge-offs	(16)	(156)	(40)	(353)
Recoveries			10
Net charge-offs	(16)	(156)	(30)	(353)
Ending balance	1,459	2,087	1,459	2,087
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1,003	1,054	1,039	1,205
Provision for possible loan losses	8	102	16	(49)
Charge-offs	(17)	(2)	(70)	(6)
Recoveries		3	9	7
Net charge-offs	(17)	1	(61)	1
Ending balance	994	1,157	994	1,157
Construction & Land Development [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	133	145	142	178
Provision for possible loan losses	(8)	(94)	(17)	(127)
Ending balance	125	51	125	51
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	69	77	60	91
Provision for possible loan losses	8	(37)	44	(52)
Charge-offs	(4)		(34)	(3)
Recoveries	1	4	4	8
Net charge-offs	(3)	4	(30)	5
Ending balance	74	44	74	44
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	321	456	327	520
Provision for possible loan losses	329	(54)	323	(118)
Ending balance	$ 650	$ 402	$ 650	$ 402

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Loans - Allowances for Loan Losses and Ending Balances by Portfolio Segment and Based on Impairment Method (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	$ 101		$ 184
Collectively evaluated for impairment	4,555		4,197
Total ending allowance balance	4,656	$ 4,494	4,381	$ 5,063	$ 5,065	$ 5,085
Loans:
Loans individually evaluated for impairment	8,954		9,213
Loans collectively evaluated for impairment	405,867		401,338
Total ending loans balance	414,821		410,551
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment	1,354		1,289
Total ending allowance balance	1,354	1,394	1,289	1,322	1,141	1,219
Loans:
Loans individually evaluated for impairment	2,187		5,922
Loans collectively evaluated for impairment	125,691		117,891
Total ending loans balance	127,878		123,813
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	71		109
Collectively evaluated for impairment	1,388		1,415
Total ending allowance balance	1,459	1,574	1,524	2,087	2,192	1,872
Loans:
Loans individually evaluated for impairment	4,944		1,679
Loans collectively evaluated for impairment	135,538		138,016
Total ending loans balance	140,482		139,695
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	30		75
Collectively evaluated for impairment	964		964
Total ending allowance balance	994	1,003	1,039	1,157	1,054	1,205
Loans:
Loans individually evaluated for impairment	1,823		1,612
Loans collectively evaluated for impairment	120,909		120,072
Total ending loans balance	122,732		121,684
Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment	125		142
Total ending allowance balance	125		142
Loans:
Loans collectively evaluated for impairment	15,195		17,446
Total ending loans balance	15,195		17,446
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment	74		60
Total ending allowance balance	74	69	60	44	77	91
Loans:
Loans collectively evaluated for impairment	8,534		7,913
Total ending loans balance	8,534		7,913
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment	650		327
Total ending allowance balance	$ 650	$ 321	$ 327	$ 402	$ 456	$ 520

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Statement of Cash Flows [Abstract]
NET CASH FROM OPERATING ACTIVITIES	$ 3,639	$ 2,326
Securities:
Proceeds from repayments, held-to-maturity	8,945	5,481
Proceeds from maturities and repayments, available-for-sale	15,394	9,605
Purchases, available-for-sale	(25,088)	(2,535)
Purchases, held-to-maturity	(4,000)
Proceeds from sale of available-for-sale securities	1,576	2,483
Proceeds from redemption of restricted stock		850
Loan originations, net of repayments	(4,697)	(33,112)
Property, equipment, and software acquisitions	(444)	(268)
Net cash used in investing activities	(8,314)	(17,496)
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits	(3,671)	2,745
Net change in short-term borrowings	5,075	1,852
Net change in other borrowings	(1,215)	4,821
Cash dividends paid	(521)	(492)
Stock options exercised		(1)
Net cash (used in) provided by financing activities	(332)	8,925
NET DECREASE IN CASH AND CASH EQUIVALENTS	(5,007)	(6,245)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	43,923	42,599
CASH AND CASH EQUIVALENTS AT END OF PERIOD	38,916	36,354
Cash paid during the year for:
Interest	792	892
Income taxes	755	1,175
Noncash financing activities:
Dividends declared	$ 520	$ 493

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Loans - Schedule of Impairment by Class of Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	$ 10,542	$ 10,568
Recorded Investment with no Allowance	7,675	7,724
Recorded Investment with Allowance	1,298	1,495
Total Recorded Investment	8,973	9,219
Related Allowance	101	184
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	6,728	7,011
Recorded Investment with no Allowance	5,542	5,889
Recorded Investment with Allowance	11	37
Total Recorded Investment	5,553	5,926
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	1,814	1,836
Recorded Investment with no Allowance	1,029	950
Recorded Investment with Allowance	564	728
Total Recorded Investment	1,593	1,678
Related Allowance	71	109
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	2,000	1,721
Recorded Investment with no Allowance	1,104	885
Recorded Investment with Allowance	723	730
Total Recorded Investment	1,827	1,615
Related Allowance	$ 30	$ 75

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Fair Value Measurements - Schedule of Fair Value of Assets Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Total Securities Available-for-sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 107,409	$ 100,108
U.S. Treasury Security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1,004	1,000
U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	29,411	25,079
Mortgage-Backed Securities of Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	49,316	48,347
Other Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	124	141
Asset-Backed Securities of Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1,550	2,604
State and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	20,903	18,267
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	5,036	4,542
Total Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	107,344	99,980
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	65	128
Level I [Member] | Total Securities Available-for-sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1,069	1,128
Level I [Member] | U.S. Treasury Security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1,004	1,000
Level I [Member] | Total Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1,004	1,000
Level I [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	65	128
Level II [Member] | Total Securities Available-for-sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	106,340	98,980
Level II [Member] | U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	29,411	25,079
Level II [Member] | Mortgage-Backed Securities of Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	49,316	48,347
Level II [Member] | Other Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	124	141
Level II [Member] | Asset-Backed Securities of Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1,550	2,604
Level II [Member] | State and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	20,903	18,267
Level II [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	5,036	4,542
Level II [Member] | Total Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 106,340	$ 98,980

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Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Cash and cash equivalents
Cash and due from banks	$ 15,244	$ 15,310
Interest-earning deposits in other banks	23,672	28,613
Total cash and cash equivalents	38,916	43,923
Securities
Available-for-sale, at fair value	107,409	100,108
Held-to-maturity; fair value of $33,553 in 2015 and $38,950 in 2014	33,554	38,316
Restricted stock, at cost	4,614	4,614
Total securities	145,577	143,038
Loans held for sale	63	75
Loans	415,198	410,903
Less allowance for loan losses	4,656	4,381
Net loans	410,542	406,522
Premises and equipment, net	8,374	8,286
Core deposit intangible	566	629
Goodwill	4,728	4,728
Bank-owned life insurance	9,948	9,815
Accrued interest receivable and other assets	4,242	3,965
TOTAL ASSETS	622,956	620,981
Deposits
Noninterest-bearing	139,603	139,251
Interest-bearing	356,801	360,824
Total deposits	496,404	500,075
Short-term borrowings	51,702	46,627
Other borrowings	13,738	14,953
Accrued interest payable and other liabilities	2,146	1,876
Total liabilities	563,990	563,531
SHAREHOLDERS' EQUITY
Common stock, $6.25 par value. Authorized 9,000,000 shares; issued 2,980,602 shares; outstanding 2,739,405 shares in 2015 and 2014	18,629	18,629
Additional paid-in capital	9,884	9,884
Retained earnings	35,908	34,090
Treasury stock at cost - 241,197 shares in 2015 and 2014	(4,871)	(4,871)
Accumulated other comprehensive loss	(584)	(282)
Total shareholders' equity	58,966	57,450
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 622,956	$ 620,981

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Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized holding gain (loss) on available-for-sale securities arising during the period, Pretax	$ (1,386)	$ 583	$ (618)	$ 1,356
Reclassify gain included in income, Pretax	(21)	(133)	(56)	(133)
Unrealized holding gain (loss) on available-for-sale securities arising during the period, Tax (Expense) Benefit	416	(214)	137	(496)
Reclassify gain included in income, Tax (Expense) Benefit	7	45	19	45
Beginning balance, After-tax			(282)
Other comprehensive income	(822)	332	(302)	876
Ending Balance, After-tax	(584)		(584)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, Pretax	360	(1,381)	(427)	(2,207)
Unrealized holding gain (loss) on available-for-sale securities arising during the period, Pretax	(1,386)	583	(618)	1,356
Reclassify gain included in income, Pretax	(21)	(133)	(56)	(133)
Amortization of held-to-maturity discount resulting from transfer, Pretax	162	51	216	104
Total other comprehensive income, Pretax	(1,245)	501	(458)	1,327
Ending balance, Pretax	(885)	(880)	(885)	(880)
Beginning balance, Tax (Expense) Benefit	(122)	469	145	751
Unrealized holding gain (loss) on available-for-sale securities arising during the period, Tax (Expense) Benefit	471	(197)	210	(461)
Reclassify gain included in income, Tax (Expense) Benefit	7	45	19	45
Amortization of held-to-maturity discount resulting from transfer, Tax (Expense) Benefit	(55)	(17)	(73)	(35)
Total other comprehensive income, Tax (Expense) Benefit	423	(169)	156	(451)
Ending Balance, Tax (Expense) Benefit	301	300	301	300
Beginning balance, After-tax	238	(912)	(282)	(1,456)
Unrealized holding gain (loss) on available-for-sale securities arising during the period, After-tax	(915)	386	(408)	895
Reclassify gain included in income, After-tax	(14)	(88)	(37)	(88)
Amortization of held-to-maturity discount resulting from transfer, After-tax	107	34	143	69
Other comprehensive income	(822)	332	(302)	876
Ending Balance, After-tax	$ (584)	$ (580)	$ (584)	$ (580)

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Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total
Balance at beginning of period at Dec. 31, 2013	$ 52,411
Statement of Stockholders' Equity [Abstract]
Net income	2,938
Other comprehensive income (loss)	876
Stock options exercised	(1)
Cash dividends declared	(985)
Balance at end of period at Jun. 30, 2014	$ 55,239
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per share	$ 0.36
Balance at beginning of period at Mar. 31, 2014	$ 53,879
Statement of Stockholders' Equity [Abstract]
Net income	1,522
Other comprehensive income (loss)	332
Stock options exercised	(1)
Cash dividends declared	(493)
Balance at end of period at Jun. 30, 2014	$ 55,239
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per share	$ 0.18
Balance at beginning of period at Dec. 31, 2014	$ 57,450
Statement of Stockholders' Equity [Abstract]
Net income	2,859
Other comprehensive income (loss)	(302)
Cash dividends declared	(1,041)
Balance at end of period at Jun. 30, 2015	$ 58,966
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per share	$ 0.38
Balance at beginning of period at Mar. 31, 2015	$ 58,791
Statement of Stockholders' Equity [Abstract]
Net income	1,517
Other comprehensive income (loss)	(822)
Cash dividends declared	(520)
Balance at end of period at Jun. 30, 2015	$ 58,966
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per share	$ 0.19

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Loans - Summary of Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015 USD ($) Contract	Jun. 30, 2015 USD ($) Contract	Jun. 30, 2014 USD ($) Contract
Financing Receivable, Modifications [Line Items]
Number of loans restructured | Contract	3	4	1
Pre-Modification Recorded Investment	$ 266	$ 295	$ 84
Post-Modification Recorded Investment	$ 266	$ 295	$ 84
Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of loans restructured | Contract	3	4	1
Pre-Modification Recorded Investment	$ 266	$ 295	$ 84
Post-Modification Recorded Investment	$ 266	$ 295	$ 84

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

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

The following table presents the changes in accumulated other comprehensive income (loss) by component net of tax for the three and six month periods ended June 30, 2015 and 2014:

(Dollars in thousands)	Pretax			Tax (Expense) Benefit			After-tax			Affected Line Item in the Consolidated Statements of Income
Three months ended June 30, 2015
Balance as of March 31, 2015	$	360		$	(122	)	$	238
Unrealized holding loss on available-for-sale securities arising during the period		(1,386	)		471			(915	)
Reclassify gain included in income		(21	)		7			(14	)	(a, b)
Amortization of held-to-maturity discount resulting from transfer		162			(55	)		107		(c)
Total other comprehensive income		(1,245	)		423			(822	)
Balance as of June 30, 2015	$	(885	)	$	301		$	(584	)
Six months ended June 30, 2015
Balance as of December 31, 2014	$	(427	)	$	145		$	(282	)
Unrealized holding loss on available-for-sale securities arising during the period		(618	)		210			(408	)
Reclassify gain included in income		(56	)		19			(37	)	(a, b)
Amortization of held-to-maturity discount resulting from transfer		216			(73	)		143		(c)
Total other comprehensive income		(458	)		156			(302	)
Balance as of June 30, 2015	$	(885	)	$	301		$	(584	)
Three months ended June 30, 2014
Balance as of March 31, 2014	$	(1,381	)	$	469		$	(912	)
Unrealized holding gain on available-for-sale securities arising during the period		583			(197	)		386
Reclassify gain included in income		(133	)		45			(88	)	(a, b)
Amortization of held-to-maturity discount resulting from transfer		51			(17	)		34		(c)
Total other comprehensive income		501			(169	)		332
Balance as of June 30, 2014	$	(880	)	$	300		$	(580	)
Six months ended June 30, 2014
Balance as of December 31, 2013	$	(2,207	)	$	751		$	(1,456	)
Unrealized holding gain on available-for-sale securities arising during the period		1,356			(461	)		895
Reclassify gain included in income		(133	)		45			(88	)	(a, b)
Amortization of held-to-maturity discount resulting from transfer		104			(35	)		69		(c)
Total other comprehensive income		1,327			(451	)		876
Balance as of June 30, 2014	$	(880	)	$	300		$	(580	)

(a) Securities gains

(b) Federal Income Tax Provision

(c) There was no income statement effect from the transfer of securities to held-to-maturity.

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Loans - Summary of Loans by Credit Quality Indicator (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 414,821	$ 410,551
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	127,878	123,813
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	140,482	139,695
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	122,732	121,684
Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	15,195	17,446
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	8,534	7,913
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	257,686	256,357
Pass [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	113,532	112,467
Pass [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	132,100	129,792
Pass [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	204	209
Pass [Member] | Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	11,850	13,889
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	11,519	10,286
Special Mention [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	5,884	3,809
Special Mention [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	4,259	4,898
Special Mention [Member] | Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,376	1,579
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	10,790	10,363
Substandard [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	7,633	6,690
Substandard [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	3,120	3,634
Substandard [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	37	39
Not Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	134,826	133,545
Not Rated [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	829	847
Not Rated [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,003	1,371
Not Rated [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	122,491	121,436
Not Rated [Member] | Construction & Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,969	1,978
Not Rated [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 8,534	$ 7,913

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Securities - Summary of Amortized Cost and Fair Value of Debt Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Available-for-sale:
Due in one year or less, Amortized Cost	$ 2,649
Due after one through five years, Amortized Cost	18,739
Due after five through ten years, Amortized Cost	30,049
Due after ten years, Amortized Cost	55,643
Total debt securities available-for-sale, Amortized Cost	107,080
Due in one year or less, Fair Value	2,665
Due after one through five years, Fair Value	18,845
Due after five through ten years, Fair Value	29,974
Due after ten years, Fair Value	55,860
Total debt securities available-for-sale, Fair Value	107,344
Held-to-maturity:
Due in one year or less, Amortized Cost	0
Due after one through five years, Amortized Cost	0
Due after five through ten years, Amortized Cost	7,769
Due after ten years, Amortized cost	25,785
Amortized Cost, Held to maturity	33,554	$ 38,316
Due in one year or less, Fair Value	0
Due after one through five years, Fair Value	0
Due after five through ten years, Fair Value	7,794
Due after ten years, Fair Value	25,759
Total debt securities held-to-maturity, Fair Value	$ 33,553	$ 38,950

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Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - Jun. 30, 2014 - shares	Total	Total
Statement of Stockholders' Equity [Abstract]
Stock Options exercised, shares	451	451

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Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Held-to-maturity, fair value	$ 33,553	$ 38,950
Common stock, par value	$ 6.25	$ 6.25
Common stock, authorized shares	9,000,000	9,000,000
Common stock, shares issued	2,980,602	2,980,602
Common stock, shares outstanding	2,739,405	2,739,405
Treasury stock, at cost	241,197	241,197

XML

Securities (Tables)

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Summary of Securities Available-for-Sale and Restricted Stock

Securities consist of the following at March 31, 2015 and December 31, 2014:

(Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
June 30, 2015
Available-for-sale
U.S. Treasury security	$	1,003	$	1	$	—	$	1,004
U.S. Government agencies		29,646		12		247		29,411
Mortgage-backed securities of government agencies		48,911		615		210		49,316
Other mortgage-backed securities		122		2		—		124
Asset-backed securities of government agencies		1,538		12		—		1,550
State and political subdivisions		20,826		305		228		20,903
Corporate bonds		5,034		16		14		5,036
Equity securities		65		—		—		65
Total available-for-sale		107,145		963		699		107,409
Held-to-maturity securities
U.S. Government agencies		13,478		210		85		13,603
Mortgage-backed securities of government agencies		20,076		71		197		19,950
Total held-to-maturity		33,554		281		282		33,553
Restricted stock		4,614		—		—		4,614
Total securities	$	145,313	$	1,244	$	981	$	145,576
December 31, 2014
Available-for-sale
U.S. Treasury security	$	1,004	$	—	$	4	$	1,000
U.S. Government agencies		25,228		6		155		25,079
Mortgage-backed securities of government agencies		47,696		730		79		48,347
Other mortgage-backed securities		139		2		—		141
Asset-backed securities of government agencies		2,606		3		5		2,604
State and political subdivisions		17,878		433		44		18,267
Corporate bonds		4,503		40		1		4,542
Equity securities		106		22		—		128
Total available-for-sale		99,160		1,236		288		100,108
Held-to-maturity securities
U.S. Government agencies		16,343		294		2		16,635
Mortgage-backed securities of government agencies		21,973		398		56		22,315
Total held-to-maturity		38,316		692		58		38,950
Restricted stock		4,614		—		—		4,614
Total securities	$	142,090	$	1,928	$	346	$	143,672

Summary of Amortized Cost and Fair Value of Debt Securities

The amortized cost and fair value of debt securities at June 30, 2015, 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	$	2,649	$	2,665
Due after one through five years		18,739		18,845
Due after five through ten years		30,049		29,974
Due after ten years		55,643		55,860
Total debt securities available-for-sale	$	107,080	$	107,344
Held-to-maturity:
Due in one year or less	$	—	$	—
Due after one through five years		—		—
Due after five through ten years		7,769		7,794
Due after ten years		25,785		25,759
Total debt securities held-to-maturity	$	33,554	$	33,553

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

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

	Three months ended June 30,				Six months ended June 30,
(Dollars in thousands)	2015		2014		2015		2014
Proceeds	$	1,488	$	2,483	$	1,576	$	2,483
Realized gains		21		133		56		133
Realized losses		—		—		—		—
Net securities gains	$	21	$	133	$	56	$	133

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

The following table presents gross unrealized losses and fair value of securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2015 and December 31, 2014:

	Securities in a continuous unrealized loss position
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value
June 30, 2015
Available-for-sale
U.S. Government agencies	$	161	$	11,482	$	86	$	5,914	$	247	$	17,396
Mortgage-backed securities of government agencies		210		14,130		—		—		210		14,130
State and political subdivisions		209		8,857		19		677		228		9,534
Corporate bonds		14		486		—		—		14		486
Held-to-maturity
U.S. Government agencies		85		3,915		—		—		85		3,915
Mortgage-backed securities of government agencies		197		14,478		—		—		197		14,478
Total temporarily impaired securities	$	876	$	53,348	$	105	$	6,591	$	981	$	59,939
December 31, 2014
Available-for-sale
U.S. Treasury security	$	4	$	1,000	$	—	$	—	$	4	$	1,000
U.S. Government agencies		12		5,188		143		5,856		155		11,044
Mortgage-backed securities of government agencies		40		6,348		39		4,939		79		11,287
Asset-backed securities of government agencies		5		1,603		—		—		5		1,603
State and political subdivisions		13		1,300		31		1,416		44		2,716
Corporate bonds		1		499		—		—		1		499
Held-to-maturity
U.S. Government agencies		2		998		—		—		2		998
Mortgage-backed securities of government agencies		—		—		56		9,265		56		9,265
Total temporarily impaired securities	$	77	$	16,936	$	269	$	21,476	$	346	$	38,412

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 01, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Trading Symbol	CSBB
Entity Registrant Name	CSB BANCORP INC /OH
Entity Central Index Key	0000880417
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,739,405

XML

Loans (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Summary of Loans

Loans consist of the following:

(Dollars in thousands)	June 30, 2015		December 31, 2014
Commercial	$	127,878	$	123,813
Commercial real estate		140,482		139,695
Residential real estate		122,732		121,684
Construction & land development		15,195		17,446
Consumer		8,534		7,913
Total loans before deferred costs		414,821		410,551
Deferred loan costs		377		352
Total Loans	$	415,198	$	410,903

Schedule of Allowances for Loan Losses by Portfolio Segment

The following tables detail activity in the allowance for loan losses by portfolio segment for the three and six month periods ended June 30, 2015 and 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

The changes in the provision for loan losses for the three and six month periods of 2015 related to commercial and industrial and commercial real estate loans were primarily due to the increase in loan balances in the first quarter of 2015 and the subsequent decrease in these loan balances in the second quarter of 2015. The increase in the provision related to consumer loans for the six months ended June 30, 2015 was due to charge-offs of loans in that category and increasing loan volumes.

The increase in the provision for possible loan losses during 2014 related to commercial and industrial loans was due to the increase in specific allocation amounts related to impaired and special mention loans and also the increase in loan balances. The increase in the provision related to commercial real estate loans was affected by an increase in the historical loss rate of this loan type, increase in loan balances, and charge-offs that occurred during the six months ended June 30, 2014. The decrease in the provision related to construction and land development loans relates primarily to the decrease in loan volume due to completion of construction projects and loans being moved to permanent financing.

(Dollars in thousands)	Commercial			Commercial Real Estate			Residential Real Estate			Construction & Land Development			Consumer			Unallocated			Total
Three months ended June 30, 2015
Beginning balance	$	1,394		$	1,574		$	1,003		$	133		$	69		$	321		$	4,494
Provision for possible loan losses		(43	)		(99	)		8			(8	)		8			329			195
Charge-offs		(3	)		(16	)		(17	)		—			(4	)					(40	)
Recoveries		6			—			—			—			1						7
Net charge-offs		3			(16	)		(17	)		—			(3	)					(33	)
Ending balance	$	1,354		$	1,459		$	994		$	125		$	74		$	650		$	4,656
Six months ended June 30, 2015
Beginning balance	$	1,289		$	1,524		$	1,039		$	142		$	60		$	327		$	4,381
Provision for possible loan losses		58			(35	)		16			(17	)		44			323			389
Charge-offs		(5	)		(40	)		(70	)		—			(34	)					(149	)
Recoveries		12			10			9			—			4						35
Net charge-offs		7			(30	)		(61	)		—			(30	)					(114	)
Ending balance	$	1,354		$	1,459		$	994		$	125		$	74		$	650		$	4,656
Three months ended June 30, 2014
Beginning balance	$	1,141		$	2,192		$	1,054		$	145		$	77		$	456		$	5,065
Provision for possible loan losses		182			51			102			(94	)		(37	)		(54	)		150
Charge-offs		(5	)		(156	)		(2	)		—			—						(163	)
Recoveries		4			—			3			—			4						11
Net charge-offs		(1	)		(156	)		1			—			4						(152	)
Ending balance	$	1,322		$	2,087		$	1,157		$	51		$	44		$	402		$	5,063
Six months ended June 30, 2014
Beginning balance	$	1,219		$	1,872		$	1,205		$	178		$	91		$	520		$	5,085
Provision for possible loan losses		113			568			(49	)		(127	)		(52	)		(118	)		335
Charge-offs		(18	)		(353	)		(6	)		—			(3	)					(380	)
Recoveries		8			—			7			—			8						23
Net charge-offs		(10	)		(353	)		1			—			5						(357	)
Ending balance	$	1,322		$	2,087		$	1,157		$	51		$	44		$	402		$	5,063

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

The following table presents the balance in the allowance for loan losses and the ending loan balances by portfolio segment and based on the impairment method as of June 30, 2015 and December 31, 2014:

(Dollars in thousands)	Commercial		Commercial Real Estate		Residential Real Estate		Construction		Consumer		Unallocated		Total
June 30, 2015
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	71	$	30	$	—	$	—	$	—		101
Collectively evaluated for impairment		1,354		1,388		964		125		74		650		4,555
Total ending allowance balance	$	1,354	$	1,459	$	994	$	125	$	74	$	650		4,656
Loans:
Loans individually evaluated for impairment	$	2,187	$	4,944	$	1,823	$	—	$	—				8,954
Loans collectively evaluated for impairment		125,691		135,538		120,909		15,195		8,534				405,867
Total ending loans balance	$	127,878	$	140,482	$	122,732	$	15,195	$	8,534				414,821
December 31, 2014
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	109	$	75	$	—	$	—	$	—		184
Collectively evaluated for impairment		1,289		1,415		964		142		60		327		4,197
Total ending allowance balance	$	1,289	$	1,524	$	1,039	$	142	$	60	$	327		4,381
Loans:
Loans individually evaluated for impairment	$	5,922	$	1,679	$	1,612	$	—	$	—				9,213
Loans collectively evaluated for impairment		117,891		138,016		120,072		17,446		7,913				401,338
Total ending loans balance	$	123,813	$	139,695	$	121,684	$	17,446	$	7,913				410,551

Schedule of Impairment by Class of Loans

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2015 and December 31, 2014:

(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance
June 30, 2015
Commercial	$	6,728	$	5,542	$	11	$	5,553	$	—
Commercial real estate		1,814		1,029		564		1,593		71
Residential real estate		2,000		1,104		723		1,827		30
Total impaired loans	$	10,542	$	7,675	$	1,298	$	8,973	$	101
December 31, 2014
Commercial	$	7,011	$	5,889	$	37	$	5,926	$	—
Commercial real estate		1,836		950		728		1,678		109
Residential real estate		1,721		885		730		1,615		75
Total impaired loans	$	10,568	$	7,724	$	1,495	$	9,219	$	184

Schedule of Average Recorded Investment in Impaired Loans and Related Interest Income Recognized

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

	Three months ended June 30,				Six months ended June 30,
(Dollars in thousands)	2015		2014		2015		2014
Average recorded investment:
Commercial	$	6,137	$	6,983	$	5,998	$	6,593
Commercial real estate		1,606		3,486		1,655		3,591
Residential real estate		1,729		1,838		1,674		1,861
Average recorded investment in impaired loans	$	9,472	$	12,307	$	9,327	$	12,045
Interest income recognized:
Commercial	$	54	$	41	$	105	$	102
Commercial real estate		4		35		9		70
Residential real estate		19		16		35		31
Interest income recognized on a cash basis on impaired loans	$	77	$	92	$	149	$	203

Schedule of Aging of Past Due and Nonaccrual Loans

The following table presents the aging of past due loans and nonaccrual loans as of June 30, 2015 and December 31, 2014 by class of 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
June 30, 2015
Commercial	$	126,693	$	149	$	228	$	—	$	808	$	1,185	$	127,878
Commercial real estate		138,747		280		4		—		1,451		1,735		140,482
Residential real estate		121,380		463		43		163		683		1,352		122,732
Construction & land development		15,195		—		—		—		—		—		15,195
Consumer		8,394		128		—		12		—		140		8,534
Total Loans	$	410,409	$	1,020	$	275	$	175	$	2,942	$	4,412	$	414,821
December 31, 2014
Commercial	$	122,283	$	362	$	96	$	1	$	1,071	$	1,530	$	123,813
Commercial real estate		137,683		174		104		—		1,734		2,012		139,695
Residential real estate		120,025		424		92		280		863		1,659		121,684
Construction & land development		17,431		—		15		—		—		15		17,446
Consumer		7,798		73		42		—		—		115		7,913
Total Loans	$	405,220	$	1,033	$	349	$	281	$	3,668	$	5,331	$	410,551

Summary of Troubled Debt Restructurings

The following table presents loans restructured during the three and six month period ended June 30, 2015 and the three and six month periods June 30, 2014.

(Dollars in thousands)	Number of loans restructured		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
For the three months ended June 30, 2015
Residential Real Estate		3	$	266	$	266
Total Restructured Loans		3	$	266	$	266
For the six months ended June 30, 2015
Residential Real Estate		4	$	295	$	295
Total Restructured Loans		4	$	295	$	295
For the three months ended June 30, 2014
Residential Real Estate		—	$	—	$	—
Total Restructured Loans		—	$	—	$	—
For the six months ended June 30, 2014
Residential Real Estate		1	$	84	$	84
Total Restructured Loans		1	$	84	$	84

Summary of Loans by Credit Quality Indicator

Based on the most recent analysis performed, the risk category of loans by class is as follows as of June 30, 2015 and December 31, 2014:

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
June 30, 2015
Commercial	$	113,532	$	5,884	$	7,633	$	—	$	829	$	127,878
Commercial real estate		132,100		4,259		3,120		—		1,003		140,482
Residential real estate		204		—		37		—		122,491		122,732
Construction & land development		11,850		1,376		—		—		1,969		15,195
Consumer		—		—		—		—		8,534		8,534
Total	$	257,686	$	11,519	$	10,790	$	—	$	134,826	$	414,821
December 31, 2014
Commercial	$	112,467	$	3,809	$	6,690	$	—	$	847	$	123,813
Commercial real estate		129,792		4,898		3,634		—		1,371		139,695
Residential real estate		209		—		39		—		121,436		121,684
Construction & land development		13,889		1,579		—		—		1,978		17,446
Consumer		—		—		—		—		7,913		7,913
Total	$	256,357	$	10,286	$	10,363	$	—	$	133,545	$	410,551

Schedule of Loans Not Rated by Class of Loans

The following table presents loans that are not rated by class of loans as of June 30, 2015 and December 31, 2014. Nonperforming loans include loans past due 90 days or more and loans on nonaccrual of interest status.

(Dollars in thousands)	Performing		Non-Performing		Total
June 30, 2015
Commercial	$	829	$	—	$	829
Commercial real estate		1,003		—		1,003
Residential real estate		121,682		809		122,491
Construction & land development		1,969		—		1,969
Consumer		8,522		12		8,534
Total	$	134,005	$	821	$	134,826
December 31, 2014
Commercial	$	847	$	—	$	847
Commercial real estate		1,371		—		1,371
Residential real estate		120,332		1,104		121,436
Construction & land development		1,978		—		1,978
Consumer		7,913		—		7,913
Total	$	132,441	$	1,104	$	133,545

XML

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
INTEREST AND DIVIDEND INCOME
Loans, including fees	$ 4,744	$ 4,631	$ 9,318	$ 9,060
Taxable securities	670	736	1,357	1,522
Nontaxable securities	137	115	267	230
Other	17	2	33	8
Total interest and dividend income	5,568	5,484	10,975	10,820
INTEREST EXPENSE
Deposits	272	289	544	593
Short-term borrowings	18	22	34	41
Other borrowings	103	128	208	243
Total interest expense	393	439	786	877
NET INTEREST INCOME	5,175	5,045	10,189	9,943
PROVISION FOR LOAN LOSSES	195	150	389	335
Net interest income, after provision for loan losses	4,980	4,895	9,800	9,608
NONINTEREST INCOME
Service charges on deposit accounts	315	316	601	613
Trust services	243	202	445	418
Debit card interchange fees	246	233	473	431
Securities gains	21	133	56	133
Gain on sale of loans, net	122	44	192	68
Other income	233	231	467	449
Total noninterest income	1,180	1,159	2,234	2,112
NONINTEREST EXPENSES
Salaries and employee benefits	2,224	2,110	4,374	4,129
Occupancy expense	258	240	524	506
Equipment expense	165	188	331	369
Professional and director fees	202	214	492	396
Franchise tax expense	100	106	199	213
Marketing and public relations	99	98	175	206
Software expense	213	172	402	334
Debit card expense	108	92	208	189
Amortization of intangible assets	31	33	63	65
FDIC insurance expense	90	91	182	177
Other expenses	484	505	972	942
Total noninterest expenses	3,974	3,849	7,922	7,526
Income before income taxes	2,186	2,205	4,112	4,194
FEDERAL INCOME TAX PROVISION	669	683	1,253	1,256
NET INCOME	$ 1,517	$ 1,522	$ 2,859	$ 2,938
Basic and diluted net earnings per share	$ 0.55	$ 0.55	$ 1.04	$ 1.07

XML

Short-Term Borrowings

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Short-Term Borrowings

NOTE 4 – SHORT-TERM BORROWINGS

The following table provides additional detail regarding repurchase agreements accounted for as secured borrowings.

	Overnight and Continuous
(Dollars in thousands)	June 30, 2015		December 31, 2014
Securities of U.S. Government Agencies pledged	$	51,935	$	46,842
Repurchase agreements	$	51,702	$	46,627

XML

Loans

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Loans

NOTE 3 – LOANS

Loans consist of the following:

(Dollars in thousands)	June 30, 2015		December 31, 2014
Commercial	$	127,878	$	123,813
Commercial real estate		140,482		139,695
Residential real estate		122,732		121,684
Construction & land development		15,195		17,446
Consumer		8,534		7,913
Total loans before deferred costs		414,821		410,551
Deferred loan costs		377		352
Total Loans	$	415,198	$	410,903

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 or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. At June 30, 2015 and December 31, 2014, approximately 77% of the outstanding principal balance of the Company’s commercial real estate loans were secured by owner-occupied properties.

With respect to loans to developers and builders that are secured by non-owner occupied properties, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction and land development loans are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction and land development loans are generally based upon estimates of costs and value associated with the completed project. These estimates may be inaccurate.

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

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

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

Loans serviced for others approximated $75.5 million and $70.6 million at June 30, 2015 and December 31, 2014, respectively.

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 industrial and commercial real estate loans. As of June 30, 2015 and December 31, 2014, there were no concentrations of loans related to any single industry.

Allowance for Loan Losses

The following tables detail activity in the allowance for loan losses by portfolio segment for the three and six month periods ended June 30, 2015 and 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

The changes in the provision for loan losses for the three and six month periods of 2015 related to commercial and industrial and commercial real estate loans were primarily due to the increase in loan balances in the first quarter of 2015 and the subsequent decrease in these loan balances in the second quarter of 2015. The increase in the provision related to consumer loans for the six months ended June 30, 2015 was due to charge-offs of loans in that category and increasing loan volumes.

The increase in the provision for possible loan losses during 2014 related to commercial and industrial loans was due to the increase in specific allocation amounts related to impaired and special mention loans and also the increase in loan balances. The increase in the provision related to commercial real estate loans was affected by an increase in the historical loss rate of this loan type, increase in loan balances, and charge-offs that occurred during the six months ended June 30, 2014. The decrease in the provision related to construction and land development loans relates primarily to the decrease in loan volume due to completion of construction projects and loans being moved to permanent financing.

(Dollars in thousands)	Commercial			Commercial Real Estate			Residential Real Estate			Construction & Land Development			Consumer			Unallocated			Total
Three months ended June 30, 2015
Beginning balance	$	1,394		$	1,574		$	1,003		$	133		$	69		$	321		$	4,494
Provision for possible loan losses		(43	)		(99	)		8			(8	)		8			329			195
Charge-offs		(3	)		(16	)		(17	)		—			(4	)					(40	)
Recoveries		6			—			—			—			1						7
Net charge-offs		3			(16	)		(17	)		—			(3	)					(33	)
Ending balance	$	1,354		$	1,459		$	994		$	125		$	74		$	650		$	4,656
Six months ended June 30, 2015
Beginning balance	$	1,289		$	1,524		$	1,039		$	142		$	60		$	327		$	4,381
Provision for possible loan losses		58			(35	)		16			(17	)		44			323			389
Charge-offs		(5	)		(40	)		(70	)		—			(34	)					(149	)
Recoveries		12			10			9			—			4						35
Net charge-offs		7			(30	)		(61	)		—			(30	)					(114	)
Ending balance	$	1,354		$	1,459		$	994		$	125		$	74		$	650		$	4,656
Three months ended June 30, 2014
Beginning balance	$	1,141		$	2,192		$	1,054		$	145		$	77		$	456		$	5,065
Provision for possible loan losses		182			51			102			(94	)		(37	)		(54	)		150
Charge-offs		(5	)		(156	)		(2	)		—			—						(163	)
Recoveries		4			—			3			—			4						11
Net charge-offs		(1	)		(156	)		1			—			4						(152	)
Ending balance	$	1,322		$	2,087		$	1,157		$	51		$	44		$	402		$	5,063
Six months ended June 30, 2014
Beginning balance	$	1,219		$	1,872		$	1,205		$	178		$	91		$	520		$	5,085
Provision for possible loan losses		113			568			(49	)		(127	)		(52	)		(118	)		335
Charge-offs		(18	)		(353	)		(6	)		—			(3	)					(380	)
Recoveries		8			—			7			—			8						23
Net charge-offs		(10	)		(353	)		1			—			5						(357	)
Ending balance	$	1,322		$	2,087		$	1,157		$	51		$	44		$	402		$	5,063

The following table presents the balance in the allowance for loan losses and the ending loan balances by portfolio segment and based on the impairment method as of June 30, 2015 and December 31, 2014:

(Dollars in thousands)	Commercial		Commercial Real Estate		Residential Real Estate		Construction		Consumer		Unallocated		Total
June 30, 2015
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	71	$	30	$	—	$	—	$	—		101
Collectively evaluated for impairment		1,354		1,388		964		125		74		650		4,555
Total ending allowance balance	$	1,354	$	1,459	$	994	$	125	$	74	$	650		4,656
Loans:
Loans individually evaluated for impairment	$	2,187	$	4,944	$	1,823	$	—	$	—				8,954
Loans collectively evaluated for impairment		125,691		135,538		120,909		15,195		8,534				405,867
Total ending loans balance	$	127,878	$	140,482	$	122,732	$	15,195	$	8,534				414,821
December 31, 2014
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	109	$	75	$	—	$	—	$	—		184
Collectively evaluated for impairment		1,289		1,415		964		142		60		327		4,197
Total ending allowance balance	$	1,289	$	1,524	$	1,039	$	142	$	60	$	327		4,381
Loans:
Loans individually evaluated for impairment	$	5,922	$	1,679	$	1,612	$	—	$	—				9,213
Loans collectively evaluated for impairment		117,891		138,016		120,072		17,446		7,913				401,338
Total ending loans balance	$	123,813	$	139,695	$	121,684	$	17,446	$	7,913				410,551

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2015 and December 31, 2014:

(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance
June 30, 2015
Commercial	$	6,728	$	5,542	$	11	$	5,553	$	—
Commercial real estate		1,814		1,029		564		1,593		71
Residential real estate		2,000		1,104		723		1,827		30
Total impaired loans	$	10,542	$	7,675	$	1,298	$	8,973	$	101
December 31, 2014
Commercial	$	7,011	$	5,889	$	37	$	5,926	$	—
Commercial real estate		1,836		950		728		1,678		109
Residential real estate		1,721		885		730		1,615		75
Total impaired loans	$	10,568	$	7,724	$	1,495	$	9,219	$	184

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

	Three months ended June 30,				Six months ended June 30,
(Dollars in thousands)	2015		2014		2015		2014
Average recorded investment:
Commercial	$	6,137	$	6,983	$	5,998	$	6,593
Commercial real estate		1,606		3,486		1,655		3,591
Residential real estate		1,729		1,838		1,674		1,861
Average recorded investment in impaired loans	$	9,472	$	12,307	$	9,327	$	12,045
Interest income recognized:
Commercial	$	54	$	41	$	105	$	102
Commercial real estate		4		35		9		70
Residential real estate		19		16		35		31
Interest income recognized on a cash basis on impaired loans	$	77	$	92	$	149	$	203

The following table presents the aging of past due loans and nonaccrual loans as of June 30, 2015 and December 31, 2014 by class of 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
June 30, 2015
Commercial	$	126,693	$	149	$	228	$	—	$	808	$	1,185	$	127,878
Commercial real estate		138,747		280		4		—		1,451		1,735		140,482
Residential real estate		121,380		463		43		163		683		1,352		122,732
Construction & land development		15,195		—		—		—		—		—		15,195
Consumer		8,394		128		—		12		—		140		8,534
Total Loans	$	410,409	$	1,020	$	275	$	175	$	2,942	$	4,412	$	414,821
December 31, 2014
Commercial	$	122,283	$	362	$	96	$	1	$	1,071	$	1,530	$	123,813
Commercial real estate		137,683		174		104		—		1,734		2,012		139,695
Residential real estate		120,025		424		92		280		863		1,659		121,684
Construction & land development		17,431		—		15		—		—		15		17,446
Consumer		7,798		73		42		—		—		115		7,913
Total Loans	$	405,220	$	1,033	$	349	$	281	$	3,668	$	5,331	$	410,551

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 $7.0 million as of June 30, 2015, and $6.8 million as of December 31, 2014, with $39 thousand and $88 thousand of specific reserves allocated to those loans, respectively. At June 30, 2015, $6.6 million of the loans classified as TDR’s were performing in accordance with their modified terms. Of the remaining $404 thousand, all were in nonaccrual of interest status.

The Company held no foreclosed real estate as of June 30, 2015 or December 31, 2014. Consumer mortgage loans in the process of foreclosure were $280 thousand at June 30, 2015 and $139 thousand at December 31, 2014.

The following table presents loans restructured during the three and six month period ended June 30, 2015 and the three and six month periods June 30, 2014.

(Dollars in thousands)	Number of loans restructured		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
For the three months ended June 30, 2015
Residential Real Estate		3	$	266	$	266
Total Restructured Loans		3	$	266	$	266
For the six months ended June 30, 2015
Residential Real Estate		4	$	295	$	295
Total Restructured Loans		4	$	295	$	295
For the three months ended June 30, 2014
Residential Real Estate		—	$	—	$	—
Total Restructured Loans		—	$	—	$	—
For the six months ended June 30, 2014
Residential Real Estate		1	$	84	$	84
Total Restructured Loans		1	$	84	$	84

The loans restructured were modified by changing the monthly payment to interest only. No principal reduction was made. None of the loans that were restructured in 2013 or 2014 have subsequently defaulted in the six month periods ended June 30, 2015 and 2014.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis includes commercial loans with an outstanding balance greater than $300 thousand. This analysis is performed on an annual basis. The Company uses the following definitions for risk ratings:

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

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

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the 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 facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $300 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 June 30, 2015 and December 31, 2014:

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
June 30, 2015
Commercial	$	113,532	$	5,884	$	7,633	$	—	$	829	$	127,878
Commercial real estate		132,100		4,259		3,120		—		1,003		140,482
Residential real estate		204		—		37		—		122,491		122,732
Construction & land development		11,850		1,376		—		—		1,969		15,195
Consumer		—		—		—		—		8,534		8,534
Total	$	257,686	$	11,519	$	10,790	$	—	$	134,826	$	414,821
December 31, 2014
Commercial	$	112,467	$	3,809	$	6,690	$	—	$	847	$	123,813
Commercial real estate		129,792		4,898		3,634		—		1,371		139,695
Residential real estate		209		—		39		—		121,436		121,684
Construction & land development		13,889		1,579		—		—		1,978		17,446
Consumer		—		—		—		—		7,913		7,913
Total	$	256,357	$	10,286	$	10,363	$	—	$	133,545	$	410,551

The following table presents loans that are not rated by class of loans as of June 30, 2015 and December 31, 2014. Nonperforming loans include loans past due 90 days or more and loans on nonaccrual of interest status.

(Dollars in thousands)	Performing		Non-Performing		Total
June 30, 2015
Commercial	$	829	$	—	$	829
Commercial real estate		1,003		—		1,003
Residential real estate		121,682		809		122,491
Construction & land development		1,969		—		1,969
Consumer		8,522		12		8,534
Total	$	134,005	$	821	$	134,826
December 31, 2014
Commercial	$	847	$	—	$	847
Commercial real estate		1,371		—		1,371
Residential real estate		120,332		1,104		121,436
Construction & land development		1,978		—		1,978
Consumer		7,913		—		7,913
Total	$	132,441	$	1,104	$	133,545

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Securities - Summary of Securities Available-for-Sale and Restricted Stock (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	$ 107,145	$ 99,160
Gross Unrealized Gains, Available-for-sale	963	1,236
Gross Unrealized Losses, Available-for-sale	699	288
Fair Value, Available-for-sale	107,409	100,108
Amortized Cost, Held to maturity	33,554	38,316
Gross Unrealized Gains, Held to maturity	281	692
Gross Unrealized Losses, Held to maturity	282	58
Fair Value, Held to maturity	33,553	38,950
Amortized Cost	145,313	142,090
Gross Unrealized Gains	1,244	1,928
Gross Unrealized Losses	981	346
Fair Value	145,576	143,672
U.S. Government Agencies [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	29,646	25,228
Gross Unrealized Gains, Available-for-sale	12	6
Gross Unrealized Losses, Available-for-sale	247	155
Fair Value, Available-for-sale	29,411	25,079
Amortized Cost, Held to maturity	13,478	16,343
Gross Unrealized Gains, Held to maturity	210	294
Gross Unrealized Losses, Held to maturity	85	2
Fair Value, Held to maturity	13,603	16,635
Mortgage-Backed Securities of Government Agencies [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	48,911	47,696
Gross Unrealized Gains, Available-for-sale	615	730
Gross Unrealized Losses, Available-for-sale	210	79
Fair Value, Available-for-sale	49,316	48,347
Amortized Cost, Held to maturity	20,076	21,973
Gross Unrealized Gains, Held to maturity	71	398
Gross Unrealized Losses, Held to maturity	197	56
Fair Value, Held to maturity	19,950	22,315
U.S. Treasury Security [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	1,003	1,004
Gross Unrealized Gains, Available-for-sale	1
Gross Unrealized Losses, Available-for-sale		4
Fair Value, Available-for-sale	1,004	1,000
Other Mortgage-Backed Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	122	139
Gross Unrealized Gains, Available-for-sale	2	2
Fair Value, Available-for-sale	124	141
Asset-Backed Securities of Government Agencies [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	1,538	2,606
Gross Unrealized Gains, Available-for-sale	12	3
Gross Unrealized Losses, Available-for-sale		5
Fair Value, Available-for-sale	1,550	2,604
State and Political Subdivisions [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	20,826	17,878
Gross Unrealized Gains, Available-for-sale	305	433
Gross Unrealized Losses, Available-for-sale	228	44
Fair Value, Available-for-sale	20,903	18,267
Corporate Bonds [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	5,034	4,503
Gross Unrealized Gains, Available-for-sale	16	40
Gross Unrealized Losses, Available-for-sale	14	1
Fair Value, Available-for-sale	5,036	4,542
Equity Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost, Available-for-sale	65	106
Gross Unrealized Gains, Available-for-sale		22
Fair Value, Available-for-sale	65	128
Restricted Stock [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost	4,614	4,614
Fair Value	$ 4,614	$ 4,614

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Short-Term Borrowings (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Summary of Repurchase Agreements Accounted for as Secured Borrowings

The following table provides additional detail regarding repurchase agreements accounted for as secured borrowings.

	Overnight and Continuous
(Dollars in thousands)	June 30, 2015		December 31, 2014
Securities of U.S. Government Agencies pledged	$	51,935	$	46,842
Repurchase agreements	$	51,702	$	46,627

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

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 six month periods ended June 30, 2015 and 2014:

(Dollars in thousands)	Pretax			Tax (Expense) Benefit			After-tax			Affected Line Item in the Consolidated Statements of Income
Three months ended June 30, 2015
Balance as of March 31, 2015	$	360		$	(122	)	$	238
Unrealized holding loss on available-for-sale securities arising during the period		(1,386	)		471			(915	)
Reclassify gain included in income		(21	)		7			(14	)	(a, b)
Amortization of held-to-maturity discount resulting from transfer		162			(55	)		107		(c)
Total other comprehensive income		(1,245	)		423			(822	)
Balance as of June 30, 2015	$	(885	)	$	301		$	(584	)
Six months ended June 30, 2015
Balance as of December 31, 2014	$	(427	)	$	145		$	(282	)
Unrealized holding loss on available-for-sale securities arising during the period		(618	)		210			(408	)
Reclassify gain included in income		(56	)		19			(37	)	(a, b)
Amortization of held-to-maturity discount resulting from transfer		216			(73	)		143		(c)
Total other comprehensive income		(458	)		156			(302	)
Balance as of June 30, 2015	$	(885	)	$	301		$	(584	)
Three months ended June 30, 2014
Balance as of March 31, 2014	$	(1,381	)	$	469		$	(912	)
Unrealized holding gain on available-for-sale securities arising during the period		583			(197	)		386
Reclassify gain included in income		(133	)		45			(88	)	(a, b)
Amortization of held-to-maturity discount resulting from transfer		51			(17	)		34		(c)
Total other comprehensive income		501			(169	)		332
Balance as of June 30, 2014	$	(880	)	$	300		$	(580	)
Six months ended June 30, 2014
Balance as of December 31, 2013	$	(2,207	)	$	751		$	(1,456	)
Unrealized holding gain on available-for-sale securities arising during the period		1,356			(461	)		895
Reclassify gain included in income		(133	)		45			(88	)	(a, b)
Amortization of held-to-maturity discount resulting from transfer		104			(35	)		69		(c)
Total other comprehensive income		1,327			(451	)		876
Balance as of June 30, 2014	$	(880	)	$	300		$	(580	)

(a) Securities gains

(b) Federal Income Tax Provision

(c) There was no income statement effect from the transfer of securities to held-to-maturity.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

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:

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.

The following table presents the assets reported on the Consolidated Balance Sheet at their fair value as of June 30, 2015 and December 31, 2014 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 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.

(Dollars in thousands)	Level I		Level II		Level III		Total
June 30, 2015
Assets:
Securities available-for-sale
U.S. Treasury security	$	1,004	$	—	$	—	$	1,004
U.S. Government agencies		—		29,411		—		29,411
Mortgage-backed securities of government agencies		—		49,316		—		49,316
Other mortgage-backed securities		—		124		—		124
Asset-backed securities of government agencies		—		1,550		—		1,550
State and political subdivisions		—		20,903		—		20,903
Corporate bonds		—		5,036		—		5,036
Total debt securities		1,004		106,340		—		107,344
Equity securities		65		—		—		65
Total available-for-sale securities	$	1,069	$	106,340	$	—	$	107,409
December 31, 2014
Assets:
Securities available-for-sale
U.S. Treasury security	$	1,000	$	—	$	—	$	1,000
U.S. Government agencies		—		25,079		—		25,079
Mortgage-backed securities of government agencies		—		48,347		—		48,347
Other mortgage-backed securities		—		141		—		141
Asset-backed securities of government agencies		—		2,604		—		2,604
State and political subdivisions		—		18,267		—		18,267
Corporate bonds		—		4,542		—		4,542
Total debt securities		1,000		98,980		—		99,980
Equity securities		128		—		—		128
Total available-for-sale securities	$	1,128	$	98,980	$	—	$	100,108

The following table presents the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of June 30, 2015 and December 31, 2014, by level within the fair value hierarchy. Impaired loans are written down to fair value through the establishment of specific reserves. 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.

(Dollars in thousands)	Level I		Level II		Level III		Total
June 30, 2015
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	8,853	$	8,853
December 31, 2014
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	9,029	$	9,029

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

	Quantitative Information about Level III Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
(Dollars in thousands)
June 30, 2015
Impaired loans	$	6,687	Discounted cash flow	Remaining term Discount rate	4 mos to 30 yrs (76 months) 3.1% to 9.8% (4.5%)
		2,166	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expense (2)	0% to -35% (-25%) -10% (-10%)
December 31, 2014
Impaired loans	$	6,539	Discounted cash flow	Remaining term Discount rate	2 mos to 28 yrs / (62 mos) 3.1% to 8.3% / (4.6%)
		2,490	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expense (2)	-20% to -25% (-24%) -10% (-10%)

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

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

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Fair Values of Financial Instruments

6 Months Ended

Jun. 30, 2015

Investments, All Other Investments [Abstract]

Fair Values of Financial Instruments

NOTE 6 – FAIR VALUES OF FINANCIAL INSTRUMENTS

The estimated fair values of recognized financial instruments as of June 30, 2015 and December 31, 2014 are as follows:

(Dollars in thousands)	Carrying Value		Level 1		Level II		Level III		Total Fair Value
June 30, 2015
Financial assets:
Cash and cash equivalents	$	38,916	$	38,916	$	—	$	—	$	38,916
Securities available-for-sale		107,409		1,069		106,340		—		107,409
Securities held-to-maturity		33,554		—		33,553		—		33,553
Restricted stock		4,614		4,614		—		—		4,614
Loans held for sale		63		63		—		—		63
Net loans		410,542		—		—		415,442		415,442
Bank-owned life insurance		9,948		9,948		—		—		9,948
Accrued interest receivable		1,306		1,306		—		—		1,306
Mortgage servicing rights		236		—		—		236		236
Financial liabilities:
Deposits	$	496,404	$	370,618	$	—	$	126,462	$	497,080
Short-term borrowings		51,702		51,702		—		—		51,702
Other borrowings		13,738		—		—		14,142		14,142
Accrued interest payable		78		78		—		—		78
December 31, 2014
Financial assets:
Cash and cash equivalents	$	43,923	$	43,923	$	—	$	—	$	43,923
Securities available-for-sale		100,108		1,128		98,980		—		100,108
Securities held-to-maturity		38,316		—		38,950		—		38,950
Restricted stock		4,614		4,614		—		—		4,614
Loans held for sale		75		75		—		—		75
Net loans		406,522		—		—		411,168		411,168
Bank-owned life insurance		9,815		9,815		—		—		9,815
Accrued interest receivable		1,329		1,329		—		—		1,329
Mortgage servicing rights		222		—		—		222		222
Financial liabilities:
Deposits	$	500,075	$	372,312	$	—	$	128,445	$	500,757
Short-term borrowings		46,627		46,627		—		—		46,627
Other borrowings		14,953		—		—		15,348		15,348
Accrued interest payable		84		84		—		—		84

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

Cash and cash equivalents; Loans held for sale; Accrued interest receivable; Short-term borrowings and Accrued interest payable

The fair value of the above instruments is considered to be carrying value, classified as Level I in the fair value hierarchy.

Securities

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

Net loans

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

Bank-owned life insurance

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

Restricted stock

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

Mortgage servicing rights

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

Deposits

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

Other borrowings

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

The Company also has unrecognized financial instruments at June 30, 2015 and December 31, 2014. These financial instruments relate to commitments to extend credit and letters of credit. The aggregated contract amount of such financial instruments was approximately $134 million at June 30, 2015 and $128 million at December 31, 2014. Such amounts are also considered to be the estimated fair values.

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

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Receivables

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. The Company has included the disclosures related to this Update in Note 3.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. This Update did not have a significant impact on the Company’s financial statements.

Revenue Recognition

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

Transfers and Servicing

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. The company has included the disclosures related to this Update in Note 4.

Extraordinary and Unusual Items

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

Intangibles

In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), as part of its initiative to reduce complexity in accounting standards. This guidance will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments in this Update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. For public business entities, the FASB decided that the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the amendments will be effective for annual periods beginning after December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. Early adoption is permitted for all entities. This Update is not expected to have a significant impact on the Company’s financial statements.

Technical Corrections and Improvements

In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements. The amendments in this Update represent changes to clarify the FASB Accounting Standards Codification (“Codification”), correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Transition guidance varies based on the amendments in this Update. The amendments in this Update that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon the issuance of this Update. This Update is not expected to have a significant impact on the Company’s financial statements.

XML

Loans - Schedule of Aging of Past Due and Nonaccrual Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 410,409	$ 405,220
Non-Accrual	2,942	3,668
Total Past Due and Non-Accrual	4,412	5,331
Total ending loans balance	414,821	410,551
30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,020	1,033
60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	275	349
90 Days Plus Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	175	281
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	126,693	122,283
Non-Accrual	808	1,071
Total Past Due and Non-Accrual	1,185	1,530
Total ending loans balance	127,878	123,813
Commercial [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	149	362
Commercial [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	228	96
Commercial [Member] | 90 Days Plus Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		1
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	138,747	137,683
Non-Accrual	1,451	1,734
Total Past Due and Non-Accrual	1,735	2,012
Total ending loans balance	140,482	139,695
Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	280	174
Commercial Real Estate [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4	104
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	121,380	120,025
Non-Accrual	683	863
Total Past Due and Non-Accrual	1,352	1,659
Total ending loans balance	122,732	121,684
Residential Real Estate [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	463	424
Residential Real Estate [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	43	92
Residential Real Estate [Member] | 90 Days Plus Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	163	280
Construction & Land Development [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	15,195	17,431
Total Past Due and Non-Accrual		15
Total ending loans balance	15,195	17,446
Construction & Land Development [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		15
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	8,394	7,798
Total Past Due and Non-Accrual	140	115
Total ending loans balance	8,534	7,913
Consumer [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	128	73
Consumer [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		$ 42
Consumer [Member] | 90 Days Plus Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 12

XML

Fair Values of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Investments, All Other Investments [Abstract]

Schedule of Estimated Fair Values of Recognized Financial Instruments

The estimated fair values of recognized financial instruments as of June 30, 2015 and December 31, 2014 are as follows:

(Dollars in thousands)	Carrying Value		Level 1		Level II		Level III		Total Fair Value
June 30, 2015
Financial assets:
Cash and cash equivalents	$	38,916	$	38,916	$	—	$	—	$	38,916
Securities available-for-sale		107,409		1,069		106,340		—		107,409
Securities held-to-maturity		33,554		—		33,553		—		33,553
Restricted stock		4,614		4,614		—		—		4,614
Loans held for sale		63		63		—		—		63
Net loans		410,542		—		—		415,442		415,442
Bank-owned life insurance		9,948		9,948		—		—		9,948
Accrued interest receivable		1,306		1,306		—		—		1,306
Mortgage servicing rights		236		—		—		236		236
Financial liabilities:
Deposits	$	496,404	$	370,618	$	—	$	126,462	$	497,080
Short-term borrowings		51,702		51,702		—		—		51,702
Other borrowings		13,738		—		—		14,142		14,142
Accrued interest payable		78		78		—		—		78
December 31, 2014
Financial assets:
Cash and cash equivalents	$	43,923	$	43,923	$	—	$	—	$	43,923
Securities available-for-sale		100,108		1,128		98,980		—		100,108
Securities held-to-maturity		38,316		—		38,950		—		38,950
Restricted stock		4,614		4,614		—		—		4,614
Loans held for sale		75		75		—		—		75
Net loans		406,522		—		—		411,168		411,168
Bank-owned life insurance		9,815		9,815		—		—		9,815
Accrued interest receivable		1,329		1,329		—		—		1,329
Mortgage servicing rights		222		—		—		222		222
Financial liabilities:
Deposits	$	500,075	$	372,312	$	—	$	128,445	$	500,757
Short-term borrowings		46,627		46,627		—		—		46,627
Other borrowings		14,953		—		—		15,348		15,348
Accrued interest payable		84		84		—		—		84

XML

Securities - Summary of Proceeds and Gains and Losses from Sales of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Investments, Debt and Equity Securities [Abstract]
Proceeds	$ 1,488	$ 2,483	$ 1,576	$ 2,483
Realized gains	21	133	56	133
Realized losses	0	0	0	0
Net securities gains	$ 21	$ 133	$ 56	$ 133

XML

Fair Value Measurements - Schedule of Fair Value of Assets Measured on Nonrecurring Basis (Detail) - Fair Value, Measurements, Nonrecurring [Member] - Impaired Loans [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 8,853	$ 9,029
Level III [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 8,853	$ 9,029

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 1,517	$ 1,522	$ 2,859	$ 2,938
Other comprehensive income (loss)
Unrealized gains (losses) arising during the period	(1,386)	583	(618)	1,356
Amounts reclassified from accumulated other comprehensive income, held-to-maturity	162	51	216	104
Income tax effect	416	(214)	137	(496)
Reclassification adjustment for gains on available-for-sale securities included in net income	(21)	(133)	(56)	(133)
Income tax effect	7	45	19	45
Other comprehensive income	(822)	332	(302)	876
Total comprehensive income	$ 695	$ 1,854	$ 2,557	$ 3,814

XML

Securities

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Securities

NOTE 2 – SECURITIES

Securities consist of the following at March 31, 2015 and December 31, 2014:

(Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
June 30, 2015
Available-for-sale
U.S. Treasury security	$	1,003	$	1	$	—	$	1,004
U.S. Government agencies		29,646		12		247		29,411
Mortgage-backed securities of government agencies		48,911		615		210		49,316
Other mortgage-backed securities		122		2		—		124
Asset-backed securities of government agencies		1,538		12		—		1,550
State and political subdivisions		20,826		305		228		20,903
Corporate bonds		5,034		16		14		5,036
Equity securities		65		—		—		65
Total available-for-sale		107,145		963		699		107,409
Held-to-maturity securities
U.S. Government agencies		13,478		210		85		13,603
Mortgage-backed securities of government agencies		20,076		71		197		19,950
Total held-to-maturity		33,554		281		282		33,553
Restricted stock		4,614		—		—		4,614
Total securities	$	145,313	$	1,244	$	981	$	145,576
December 31, 2014
Available-for-sale
U.S. Treasury security	$	1,004	$	—	$	4	$	1,000
U.S. Government agencies		25,228		6		155		25,079
Mortgage-backed securities of government agencies		47,696		730		79		48,347
Other mortgage-backed securities		139		2		—		141
Asset-backed securities of government agencies		2,606		3		5		2,604
State and political subdivisions		17,878		433		44		18,267
Corporate bonds		4,503		40		1		4,542
Equity securities		106		22		—		128
Total available-for-sale		99,160		1,236		288		100,108
Held-to-maturity securities
U.S. Government agencies		16,343		294		2		16,635
Mortgage-backed securities of government agencies		21,973		398		56		22,315
Total held-to-maturity		38,316		692		58		38,950
Restricted stock		4,614		—		—		4,614
Total securities	$	142,090	$	1,928	$	346	$	143,672

The amortized cost and fair value of debt securities at June 30, 2015, 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	$	2,649	$	2,665
Due after one through five years		18,739		18,845
Due after five through ten years		30,049		29,974
Due after ten years		55,643		55,860
Total debt securities available-for-sale	$	107,080	$	107,344
Held-to-maturity:
Due in one year or less	$	—	$	—
Due after one through five years		—		—
Due after five through ten years		7,769		7,794
Due after ten years		25,785		25,759
Total debt securities held-to-maturity	$	33,554	$	33,553

Securities with a carrying value of approximately $94.7 million and $88.4 million were pledged at June 30, 2015 and December 31, 2014, 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 at June 30, 2015 and December 31, 2014. Federal Reserve Bank stock was $471 thousand at June 30, 2015 and December 31, 2014.

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

	Three months ended June 30,				Six months ended June 30,
(Dollars in thousands)	2015		2014		2015		2014
Proceeds	$	1,488	$	2,483	$	1,576	$	2,483
Realized gains		21		133		56		133
Realized losses		—		—		—		—
Net securities gains	$	21	$	133	$	56	$	133

The income tax provision applicable to realized gains amounted to $7 and $45 thousand for the three month periods ending June 30, 2015 and 2014, respectively. The income tax provision applicable to realized gains amounted to $19 thousand and $45 thousand for the six month periods ending June 30, 2015 and 2014, respectively. There were no tax benefits recognized from realized losses in 2015 or 2014.

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 June 30, 2015 and December 31, 2014:

	Securities in a continuous unrealized loss position
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value
June 30, 2015
Available-for-sale
U.S. Government agencies	$	161	$	11,482	$	86	$	5,914	$	247	$	17,396
Mortgage-backed securities of government agencies		210		14,130		—		—		210		14,130
State and political subdivisions		209		8,857		19		677		228		9,534
Corporate bonds		14		486		—		—		14		486
Held-to-maturity
U.S. Government agencies		85		3,915		—		—		85		3,915
Mortgage-backed securities of government agencies		197		14,478		—		—		197		14,478
Total temporarily impaired securities	$	876	$	53,348	$	105	$	6,591	$	981	$	59,939
December 31, 2014
Available-for-sale
U.S. Treasury security	$	4	$	1,000	$	—	$	—	$	4	$	1,000
U.S. Government agencies		12		5,188		143		5,856		155		11,044
Mortgage-backed securities of government agencies		40		6,348		39		4,939		79		11,287
Asset-backed securities of government agencies		5		1,603		—		—		5		1,603
State and political subdivisions		13		1,300		31		1,416		44		2,716
Corporate bonds		1		499		—		—		1		499
Held-to-maturity
U.S. Government agencies		2		998		—		—		2		998
Mortgage-backed securities of government agencies		—		—		56		9,265		56		9,265
Total temporarily impaired securities	$	77	$	16,936	$	269	$	21,476	$	346	$	38,412

There were fifty-six (56) securities in an unrealized loss position at June 30, 2015, ten (10) 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 at June 30, 2015.

XML

Securities - Summary of Gross Unrealized Losses and Fair Value of Available for Sale Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity, Gross Unrealized Losses, Total	$ 282	$ 58
Gross Unrealized Losses, Less Than 12 Months	876	77
Fair Value, Less Than 12 Months	53,348	16,936
Gross Unrealized Losses, 12 Months Or More	105	269
Fair Value, 12 Months Or More	6,591	21,476
Gross Unrealized Losses, Total	981	346
Fair Value, Total	59,939	38,412
U.S. Treasury Security [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months		4
Fair Value, Less Than 12 Months		1,000
Gross Unrealized Losses, Total		4
Fair Value, Total		1,000
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity, Gross Unrealized Losses, Less Than 12 Months	85	2
Held-to-maturity, Fair Value, Less Than 12 Months	3,915	998
Held-to-maturity, Gross Unrealized Losses, Total	85	2
Held-to-maturity, Fair Value, Total	3,915	998
Gross Unrealized Losses, Less Than 12 Months	161	12
Fair Value, Less Than 12 Months	11,482	5,188
Gross Unrealized Losses, 12 Months Or More	86	143
Fair Value, 12 Months Or More	5,914	5,856
Gross Unrealized Losses, Total	247	155
Fair Value, Total	17,396	11,044
Mortgage-Backed Securities of Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity, Gross Unrealized Losses, Less Than 12 Months	197
Held-to-maturity, Fair Value, Less Than 12 Months	14,478
Held-to-maturity, Gross Unrealized Losses, 12 Months Or More		56
Held-to-maturity, Fair Value, 12 Months Or More		9,265
Held-to-maturity, Gross Unrealized Losses, Total	197	56
Held-to-maturity, Fair Value, Total	14,478	9,265
Gross Unrealized Losses, Less Than 12 Months	210	40
Fair Value, Less Than 12 Months	14,130	6,348
Gross Unrealized Losses, 12 Months Or More		39
Fair Value, 12 Months Or More		4,939
Gross Unrealized Losses, Total	210	79
Fair Value, Total	14,130	11,287
State and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months	209	13
Fair Value, Less Than 12 Months	8,857	1,300
Gross Unrealized Losses, 12 Months Or More	19	31
Fair Value, 12 Months Or More	677	1,416
Gross Unrealized Losses, Total	228	44
Fair Value, Total	9,534	2,716
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months	14	1
Fair Value, Less Than 12 Months	486	499
Gross Unrealized Losses, Total	14	1
Fair Value, Total	$ 486	499
Asset-Backed Securities of Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months		5
Fair Value, Less Than 12 Months		1,603
Gross Unrealized Losses, Total		5
Fair Value, Total		$ 1,603

XML

Short-Term Borrowings - Summary of Repurchase Agreements Accounted for as Secured Borrowings (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Short-term Debt [Abstract]
Securities of U.S. Government Agencies pledged	$ 51,935	$ 46,842
Repurchase agreements	$ 51,702	$ 46,627

XML

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Assets Measured on Recurring Basis

The following table presents the assets reported on the Consolidated Balance Sheet at their fair value as of June 30, 2015 and December 31, 2014 by level within the fair value hierarchy.  

(Dollars in thousands)	Level I		Level II		Level III		Total
June 30, 2015
Assets:
Securities available-for-sale
U.S. Treasury security	$	1,004	$	—	$	—	$	1,004
U.S. Government agencies		—		29,411		—		29,411
Mortgage-backed securities of government agencies		—		49,316		—		49,316
Other mortgage-backed securities		—		124		—		124
Asset-backed securities of government agencies		—		1,550		—		1,550
State and political subdivisions		—		20,903		—		20,903
Corporate bonds		—		5,036		—		5,036
Total debt securities		1,004		106,340		—		107,344
Equity securities		65		—		—		65
Total available-for-sale securities	$	1,069	$	106,340	$	—	$	107,409
December 31, 2014
Assets:
Securities available-for-sale
U.S. Treasury security	$	1,000	$	—	$	—	$	1,000
U.S. Government agencies		—		25,079		—		25,079
Mortgage-backed securities of government agencies		—		48,347		—		48,347
Other mortgage-backed securities		—		141		—		141
Asset-backed securities of government agencies		—		2,604		—		2,604
State and political subdivisions		—		18,267		—		18,267
Corporate bonds		—		4,542		—		4,542
Total debt securities		1,000		98,980		—		99,980
Equity securities		128		—		—		128
Total available-for-sale securities	$	1,128	$	98,980	$	—	$	100,108

Schedule of Fair Value of Assets Measured on Nonrecurring Basis

The following table presents the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of June 30, 2015 and December 31, 2014, by level within the fair value hierarchy.  

(Dollars in thousands)	Level I		Level II		Level III		Total
June 30, 2015
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	8,853	$	8,853
December 31, 2014
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	9,029	$	9,029

Schedule of Quantitative Information of Assets Measured at Fair Value on Nonrecurring Basis

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

	Quantitative Information about Level III Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
(Dollars in thousands)
June 30, 2015
Impaired loans	$	6,687	Discounted cash flow	Remaining term Discount rate	4 mos to 30 yrs (76 months) 3.1% to 9.8% (4.5%)
		2,166	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expense (2)	0% to -35% (-25%) -10% (-10%)
December 31, 2014
Impaired loans	$	6,539	Discounted cash flow	Remaining term Discount rate	2 mos to 28 yrs / (62 mos) 3.1% to 8.3% / (4.6%)
		2,490	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expense (2)	-20% to -25% (-24%) -10% (-10%)

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

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