Croghan Bancshares : 2021 Annual Report

CROGHAN BANCSHARES, INC.

CONTENTS
Description of the Corporation and Common Share Information	2
Selected Financial Data	3
Independent Auditor's Report	4
Consolidated Financial Statements	6

Investor Relations

Croghan Bancshares, Inc. Amy LeJeune

323 Croghan Street, Fremont, OH 43420

P: 419-332-7301 | 888-276-4426 | croghan.com

Availability of More Information

To obtain a free copy of the Corporation's Annual Report for the year ended December 31, 2021, or for other information, contact us by one of the methods noted above.

Annual Meeting

The Annual Meeting of Shareholders:

WHEN: Tuesday, May 10, 2022 1:00 pm Eastern Time

WHERE: Crystal Arbors

1800 E. State St. Suite N

Fremont, OH 43420

A live audio presentation of the Annual Meeting will also be available. Please refer to the Proxy Statement for the 2022 Annual Meeting for additional details.

1

CROGHAN BANCSHARES, INC.

DESCRIPTION OF THE CORPORATION

Croghan Bancshares, Inc. ("Croghan"), an Ohio corporation, is a financial holding company incorporated in 1983 with $1,112,000,000 in total assets as of December 31, 2021. Croghan owns all of the outstanding shares of The Croghan Colonial Bank ("Bank"), an Ohio state-chartered bank incorporated in 1888 and headquartered in Fremont, Ohio, and Croghan Risk Management Inc., a captive insurance company, incorporated in 2016.

The Bank offers a diverse range of commercial and retail banking services through its 19 banking centers located in Bellevue, Clyde, Curtice, Fremont, Green Springs, Monroeville, Norwalk, Maumee, Milan, Oak Harbor, Oregon, Port Clinton, and Tiffin, Ohio. Products are comprised of traditional banking services such as consumer, commercial, agricultural and real estate loans, personal and business checking accounts, savings accounts, time deposit accounts, safe deposit box services, and trust department services. Investment products bearing no FDIC insurance are offered through the Bank's Trust and Investment Services Division.

MARKET PRICE AND DIVIDENDS ON COMMON SHARES (unaudited)

Croghan's common shares are quoted on the OTCQB under the symbol "CHBH." The following shows the range of high and low price quotations, as reported on the OTCQB, for Croghan's common shares for each quarterly period during 2021 and 2020. OTCQB quotations reflect inter-dealer prices, without mark-up,mark-down, or commission and may not necessarily represent actual transactions.

	2021	2020
	Low	High	Low	High
First Quarter	$50.25	$57.00	$32.00	$56.00
Second Quarter	52.00	67.50	34.52	49.00
Third Quarter	59.76	65.50	39.00	50.00
Fourth Quarter	60.07	69.00	43.00	54.74

Net income, basic net income per share data, and dividends declared by Croghan on its common shares during the past two years are as follows (dollars in thousands, except per share data):

		Basic
2021	Net	net income	Dividend
	income	per share	per share
First quarter	$ 3,746	$ 1.68	$	.53
Second quarter	3,886	1.75		.54
Third quarter	4,163	1.88		.54
Fourth quarter	3,437	1.56		.55
Total	$15,232	$6.87	$2.16
		Basic
2020	Net	net income	Dividend
	income	per share	per share
First quarter	$ 2,947	$ 1.31	$	.49
Second quarter	3,268	1.45		.49
Third quarter	3,703	1.66		.50
Fourth quarter	3,801	1.70		.52
Total	$13,719	$6.12	$2.00

The ability of Croghan to declare and pay dividends on its common shares is dependent, in large part, on dividends received from the Bank. The ability of the Bank to pay dividends is subject to certain legal and regulatory limitations described in Note 17 to the consolidated financial statements contained in the Annual Report.

2

CROGHAN BANCSHARES, INC.

THREE YEAR SUMMARY OF SELECTED FINANCIAL DATA (unaudited)

		Years ended December 31,
	2021		2020	2019
	(Dollars in thousands, except share data)
Statements of operations:
Total interest income	$39,818		$38,583	$37,590
Total interest expense		1,784			2,692		4,325
Net interest income	38,034		35,891	33,265
Provision for loan losses		825			2,475		825
Net interest income, after provision for loan losses	37,209		33,416	32,440
Total non-interest income	8,309		8,290	7,243
Total non-interest expenses	26,988		25,122	24,673
Income before federal income taxes	18,530		16,584	15,010
Federal income taxes		3,298			2,865		2,488
Net income	$15,232		$13,719	$12,522
Per share of common stock:
Net income - Basic	$ 6.87		$ 6.12	$ 5.52
Net income - Diluted	6.87		6.12	5.51
Dividends	2.16		2.00	1.88
Book value	63.72		60.90	54.78
Tangible book value	53.41		50.64	44.48
Average shares of common stock outstanding	2,218,188		2,242,404	2,270,143
Year-end balances:
Loans, net	$ 634,120		$ 702,270	$631,853
Securities	364,604		234,371	166,077
Total assets	1,112,402		1,028,452	876,792
Deposits	908,687		814,898	686,847
Stockholders' equity	140,056		135,849	123,551
Selected ratios:
Net yield on average interest-earning assets	3.77%	3.99%	4.21%
Return on average assets	1.40		1.41	1.46
Return on average stockholders' equity	10.89		10.45	10.31
Net loan charge-offs as a percent of average
outstanding net loans	.05		.03	.07
Allowance for loan losses as a percent of
year-end loans	1.36		1.16	.94
Stockholders' equity as a percent of total
year-end assets	12.59		13.21	14.09
Cash dividends declared as a percent of net income	31.41		32.65	34.04
Number of stockholders of record	979		1,001	978
Number of full-time equivalent employees	203		199	207

3