CROGHAN BANCSHARES, INC. Croghan Colonial Bank
Banking Centers
Fremont Main
419.332.7301
Fremont Ballville
419.355.2361
Fremont East
419.355.2342
Fremont North
419.334.7188
Fremont West
419.355 2352
Bellevue
419.483.2541
Clyde
419.547.9525
Curtice
419.836.7722
Green Springs
419.639.2323
Maumee
419.794.9399
Milan
567.401.0260
Monroeville
419.465.2596
Norwalk
419.668.2507
Oak Harbor
419.898.5741
Oregon
419.691.6264
Port Clinton Catawba
419.732.6150
Port Clinton Downtown
419.734.5600
Tiffin Downtown
419.447.8777
Tiffin Westgate
419.447.2250
QUARTERLY REPORT
June 30, 2022
MESSAGE FROM | KENDALL W. RIEMAN, President/CEO |
A | |
July 2022
Letter to our Shareholders:
2022 2nd quarter update includes:
- Economic environment
- Net Income year-to-date totaling $6,680,000 or $3.04 per share
- The quarterly cash dividend of $0.55 per share, up 3% year-to-date
- Annual Meeting Vote Results
Volatility and uncertainty in our financial markets have returned. Equity markets are down considerably and interest rates are on the rise. Generally, higher interest rates for Croghan does help our net interest income (NII) and increase our net income. While trends in NII are moving up, when compared to last year's NII results, we are down. Please note that last year's numbers were elevated due to the effects of the government's PPP program which have now been mostly accounted for.
Besides the positive impacts on NII, higher interest rates have had some negative impacts on our financial numbers. One negative effect has been the impact on our reported capital. Higher market rates negatively impact the market value of bonds that we hold on our books. While we do not anticipate any real losses on the bonds we hold, accounting rules require us to "mark to market" the bonds on our books. The adjustments can be seen on our balance sheet in the capital section. Net changes to our capital numbers year-to-date (YTD) from the marking to market in our bond portfolio have been ($30,357,000). Again, we do not anticipate any of these losses occurring, and expect all of the losses to be at zero when the bonds mature; at which time we will receive all of our principal back.
Our actual net income year-to-date continues to be strong, despite a net decrease in PPP fee income compared to last year of $1,170,000. We have experienced a material decrease in mortgage loan sales income in both YTD and for the 2nd quarter. The decrease is directly related to the higher interest rates that have occurred. Higher rates have slowed down the re-financing volume which was very popular when rates were much lower over the last two years. Our credit quality has remained excellent, leading to not having any allocation to our provision for loan losses year- to-date. Other non-interest expenses are up modestly at 2%, despite wage and benefit expenses pressures that most businesses are experiencing. Overall, we are pleased with our results for the quarter and YTD.
Turning to our dividends paid to shareholders, I am pleased to announce that our most recent declared quarterly dividend is $0.55 per share and was payable on July 29, 2022, to shareholders of record on July 8, 2022. This is the same as last quarter, and an increase of $0.03, or 3% from one year ago.
As a re-cap of matters that were voted on at The Annual Shareholder Meeting held on May 10, 2022, shareholders approved all proposed directors for election, as well as the ratification of the proposed public accounting firm.
Thank you for your continued support and we look forward to seeing you out in our communities.
Year to Date | Three Months Ended | ||||||||||||
Financial Information (unaudited) | 6/30/22 | 6/30/21 | 6/30/22 | 6/30/21 | |||||||||
CONDENSED STATEMENT OF OPERATIONS | |||||||||||||
Interest income | $ | 18,707,000 | $ | 19,707,000 | $ | 9,491,000 | $ | 9,828,000 | |||||
Interest expense | 727,000 | 951,000 | 370,000 | 456,000 | |||||||||
Net interest income | 17,980,000 | 18,756,000 | 9,121,000 | 9,372,000 | |||||||||
Provision for loan losses | - | 500,000 | - | 175,000 | |||||||||
Net interest income after provision | 17,980,000 | 18,256,000 | 9,121,000 | 9,197,000 | |||||||||
for loan losses | |||||||||||||
Other non-interest income | 3,640,000 | 4,293,000 | 1,745,000 | 2,247,000 | |||||||||
Non-interest expenses | 13,541,000 | 13,284,000 | 6,881,000 | 6,733,000 | |||||||||
Income before federal income taxes | 8,079,000 | 9,265,000 | 3,985,000 | 4,711,000 | |||||||||
Federal income taxes | 1,399,000 | 1,633,000 | 689,000 | 825,000 | |||||||||
Net income | $ | 6,680,000 | $ | 7,632,000 | $ | 3,296,000 | $ | 3,886,000 | |||||
PERIOD END BALANCES | |||||||||||||
As of | |||||||||||||
6/30/22 | 12/31/21 | ||||||||||||
Cash and cash equivalents | $ | 17,140,000 | $ | 45,801,000 | |||||||||
Securities | $ | 357,540,000 | $ | 364,604,000 | |||||||||
Loans | $ | 667,541,000 | $ | 642,889,000 | |||||||||
Less allowance for loan loss | $ | 8,739,000 | $ | 8,769,000 | |||||||||
Other assets | $ | 75,873,000 | $ | 67,877,000 | |||||||||
Total assets | $ | 1,109,355,000 | $ | 1,112,402,000 | |||||||||
Deposits | $ | 925,686,000 | $ | 908,687,000 | |||||||||
Other liabilities | $ | 70,528,000 | $ | 63,659,000 | |||||||||
Total liabilities | $ | 996,214,000 | $ | 972,346,000 | |||||||||
Net valuation allowance-securities | $ | (28,899,000) | $ | 1,458,000 | |||||||||
Retained earnings | $ | 111,321,000 | $ | 107,051,000 | |||||||||
Other equity | $ | 30,719,000 | $ | 31,547,000 | |||||||||
Total capital | $ | 113,141,000 | $ | 140,056,000 | |||||||||
Total liabilities and capital | $ | 1,109,355,000 | $ | 1,112,402,000 | |||||||||
Common shares outstanding | 2,186,858 | 2,198,013 |
PER SHARE DATA (BASIC) | ||||
Year to Date | ||||
6/30/22 | 6/30/21 | |||
Net income | $ | 3.04 | $ | 3.43 |
Cash dividends | ||||
declared | $ | 1.10 | $ | 1.07 |
Book value | $ | 51.74 | $ | 62.27 |
Tangible book value | $ | 41.41 | $ | 52.02 |
Closing price | $ | 61.25 | $ | 59.75 |
FINANCIAL RATIOS | ||||
Year to Date | ||||
6/30/22 | 6/30/21 | |||
Return on | 1.20% | 1.42% | ||
average assets | ||||
Return on | 10.40% | 11.20% | ||
average equity | ||||
Net interest margin | 3.41% | 3.75% | ||
Loans to deposits | 72.11% | 75.89% | ||
Average common | ||||
shares outstanding | 2,194,151 | 2,226,121 |
SHAREHOLDER INFORMATION
Croghan Colonial Bank
Corporate Office
323 Croghan Street
Fremont, OH 43420
419-332-7301
Stock Listing:
Ticker symbol: CHBH
Find us on the OTCQB Market
Investor Relations:
Amy LeJeune alejeune@croghan.com419-355-2231 or toll free 888-276-4426
BOARD OF DIRECTORS
Jim Bowlus
Lead Director
Mike Allen
John Hoty
Claire Johansen
Dan Lease
Tom McLaughlin
Al Mehlow
Kendall Rieman
Rick Robertson
Gary Zimmerman
Sarah Zimmerman
MANAGEMENT TEAM
Kendall Rieman
President/CEO
Brad Elfring
SVP, CFO
Carla Waggoner
SVP, COO
Chip VanDette
SVP, CLO
Chris Kelly
SVP, CCO
Tracy Baughman
SVP, CIO
Jodi Albright
VP, Regional Mgr.
Theresa Elfring
VP, Regional Mgr.
Shannon George
VP, Sr. Commercial Lender
Wayne Nault
VP, Sr. Business Development Officer
Missy Walker
VP, Retail Operations Mgr.
Laura Whipple
VP, HR Mgr.
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Croghan Bancshares Inc. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 14:56:07 UTC.
