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

April 2022

Letter to our Shareholders:

2022 1st quarter update includes:

  • Net Income totaling $3,384,000 or $1.54 per share

  • Quarterly cash dividend of $0.55 per share, up 4% year-to-date

  • PPP Loan Update

  • Director Retirements

  • Annual Meeting to be held on May 10, 2022

Another quarter has come and gone and I continue to be pleased to share our earnings and update you on Croghan Bancshares. Our 2021 was a historical year for the Bank earnings, and we followed that up with a strong first quarter 2022. Net income was $3,384,000, and a net income per share of $1.54. These numbers resulted in a 1.21% ROAA and 9.93% ROAE. The net income is down $362,000, or 9.7% compared to last year's same period as the fee income provided by the SBA PPP loans decreased $567,000. The PPP program for the Bank was a very big success. The Bank was able to assist our clients as well as gain new clients by helping them through the loan process. As we continue into 2022 and this program winds down, please realize that the comparable interest income will trail last year due mostly to this one-time event. At this time, the loans and fees have almost fully been forgiven and income has been recognized. Another challenge for year-over-year comparables is reduced non-interest income from slower refinancing activity and home purchases due to an increase in interest rates. Positive comparables came from zero allocation to the provision for loan loss and from our wealth management area. The Federal Reserve increased the Fed Funds rate by 25 basis points in the 1st quarter, and forecasts are signaling that there will be more increases in 2022. Rising rates are historically good for most bank's earnings and margins; however, the increases will likely not result in a year-over-year increase to net income.

Our balance sheet continues to remain above $1.1 Billion. The growth we had over the last two years has been excellent. We continue to look for ways to generate new loan growth utilizing our expanded presence in Maumee and Brunswick Ohio as well as our new consumer lending activity in central Michigan. We were able to achieve core loan growth of $11.4MM after removing the effects of PPP loan forgiveness and year-end adjustments that occur for some clients.

For the first quarter, we declared a dividend of $0.55 per share, payable on April 29, 2022, to shareholders of record as of April 8, 2022. The $0.55 dividend is a $0.02 increase year-over-year or an increase of 4%. Our closing price per share on March 31, 2022, was $64.51 and the annualized dividend yield would equal 3.41%.

In the annual report, I reported Directors Jim Faist and Jim Dunn announced they would not be seeking re-election and chose to retire. I would like to recognize and thank them for the service they provided to Croghan. As a reminder, the Annual Shareholder Meeting will be held on May 10, 2022. Please refer to the proxy statement or shareholder notice statement for instructions on how to attend this meeting.

Financial Information (unaudited)

CONDENSED STATEMENT OF OPERATIONS

Interest income

Interest expense Net interest income

Provision for loan losses

Net interest income after provision for loan losses

Other non-interest income Non-interest expenses

Income before federal income taxesFederal income taxes Net income

PERIOD END BALANCES

Cash and cash equivalents Securities

Loans

Less allowance for loan loss Other assets

Total assets

Deposits Other liabilities Stockholders' equity

Total liabilities and capital

Common shares outstanding

Year to Date 3/31/22 3/31/21

  • $ 9,216,000 357,000 8,859,000

    -

    • $ 9,879,000 495,000 9,384,000

      325,000

      8,859,000 9,059,000

      1,895,000 2,046,000

      6,660,000 6,551,000

      4,094,000 4,554,000

      710,000

  • $ 3,384,000

As of

3/31/22

  • $ 16,527,000

  • $ 389,311,000

  • $ 639,135,000

  • $ 8,757,000

  • $ 72,386,000 $1,108,602,000

  • $ 927,622,000

  • $ 56,600,000

  • $ 124,380,000 $1,108,602,000

808,000

  • $ 3,746,000

12/31/21

  • $ 45,801,000

  • $ 364,604,000

  • $ 642,889,000

  • $ 8,769,000

  • $ 67,877,000 $1,112,402,000

  • $ 908,687,000

  • $ 63,659,000

  • $ 140,056,000 $1,112,402,000

Year Ended 12/31/21 12/31/20

$

  • 39,818,000 $ 38,583,000

  • 1,784,000 2,692,000

  • 38,034,000 35,891,000

825,000 2,475,000

  • 37,209,000 33,416,000

  • 8,309,000 8,290,000

  • 26,988,000 25,122,000

  • 18,530,000 16,584,000

  • 3,298,000 2,865,000

    $

  • 15,232,000 $ 13,719,000

PER SHARE DATA (BASIC)

Net income

Cash dividends declared

Book value Tangible book value Closing price

FINANCIAL RATIOS

Return on

  • average assets

    Return on

    average equity

    Year to Date

    3/31/22 3/31/21

    $ 1.54 $ 1.68

    $

    0.55

    $

    0.53

    $

    56.63

    $

    60.51

    $

    46.34

    $

    50.24

    $

    64.51

    $

    54.00

    Year to Date 3/31/22 3/31/21

  • 1.21% 1.41%

    9.93% 11.00%

  • Net interest margin 3.37% 3.80%

  • Loans to deposits 68.90% 78.96%

BOARD OF DIRECTORS

Jim Bowlus Lead Director

Mike Allen Jim Dunn Jim Faist John Hoty Claire Johansen

Dan Lease Tom McLaughlin

Al Mehlow Kendall Rieman Rick Robertson Gary Zimmerman Sarah Zimmerm

MANAGEMENT TEAM

Kendall Rieman President/CEO

Brad Elfring

SVP, CFO

Average common shares outstanding

2,196,561

2,227,075

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 LeJeunealejeune@croghan.com 419-355-2231 or toll free 888-276-4426

Carla Waggoner

SVP, Technology & Operations Officer

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.

2,196,199

2,198,013

Laura Whipple

VP, HR Mgr.

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Disclaimer

Croghan Bancshares Inc. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 18:12:09 UTC.