UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2011

0-20159

(Commission File Number)

CROGHAN BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Ohio				31-1073048
(State or other jurisdiction of				(I.R.S. Employer
incorporation or organization)				Identification No.)
323 Croghan Street, Fremont, Ohio				43420
(Address of principal executive offices)				(Zip Code)

(419) 332-7301

(Registrant’s telephone number, including area code)

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 website, 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 [    ]  No [    ]

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

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [X]

(Do not check if a smaller reporting company)

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

The Registrant had 1,673,380 common shares, par value $12.50 per share, outstanding as of April 27, 2011.

This document contains 31 pages. The Exhibit Index is on page 28 immediately preceding the filed exhibits.

CROGHAN BANCSHARES, INC.
Index

PART I. FINANCIAL INFORMATION				Page(s)
Item 1.		Financial Statements		3 - 18
Item 2.		Management's Discussion and Analysis of Financial Condition and Results of Operations		19 -24
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		24
Item 4.		Controls and Procedures		24-25
PART II. OTHER INFORMATION
Item 1.		Legal Proceedings		25
Item 1A.		Risk Factors		25
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds		25-26
Item 3.		Defaults Upon Senior Securities		26
Item 4.		[Reserved]		26
Item 5.		Other Information		26
Item 6.		Exhibits		26
Signatures				27
EX-31.1
EX-31.2
EX-32

PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

CROGHAN BANCSHARES, INC.

Consolidated Balance Sheets (Unaudited)

		March 31				December 31
ASSETS		2011				2010
		Dollars in thousands, except par value)
CASH AND CASH EQUIVALENTS
Cash and due from banks		$	9,690			$	15,592
Interest-bearing deposits due from banks			2,616				6,264
Total cash and cash equivalents			12,306				21,856
SECURITIES
Available-for-sale, at fair value			157,961				140,279
Held-to-maturity, at amortized cost, fair value of $505 in 2010			-				500
Restricted stock			3,844				3,844
Total securities			161,805				144,623
LOANS			291,093				293,305
Less: Allowance for loan losses			4,742				4,955
Net loans			286,351				288,350
Premises and equipment, net			6,470				6,613
Cash surrender value of life insurance			11,428				11,357
Goodwill			10,430				10,430
Core deposit intangible asset, net			101				115
Accrued interest receivable			2,311				1,980
Other real estate owned			865				1,443
Other assets			3,122				2,960
TOTAL ASSETS		$	495,189			$	489,727
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Demand, non-interest bearing		$	63,335			$	61,409
Savings, NOW, and Money Market deposits			197,986				189,412
Time			128,821				133,336
Total deposits			390,142				384,157
Federal funds purchased and securities sold under repurchase agreements			22,571				20,989
Federal Home Loan Bank borrowings			22,500				25,500
Dividends payable			535				536
Other liabilities			1,997				2,032
Total liabilities			437,745				433,214
STOCKHOLDERS’ EQUITY
Common stock, $12.50 par value. Authorized 6,000,000 shares; issued 1,914,109 shares			23,926				23,926
Surplus			179				179
Retained earnings			40,524				40,050
Accumulated other comprehensive income			1,040				507
Treasury stock, 240,729 shares in 2011 and 237,729 shares in 2010, at cost			(8,225	)			(8,149	)
Total stockholders’ equity			57,444				56,513
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	495,189			$	489,727

See notes to consolidated financial statements.

CROGHAN BANCSHARES, INC.

Consolidated Statements of Operations (Unaudited)

		Three months ended
		March 31
		2011				2010
		(Dollars in thousands,
		except per share data)
INTEREST INCOME
Loans, including fees		$	4,114			$	4,627
Securities:
Obligations of U.S. Government agencies and corporations			641				693
Obligations of states and political subdivisions			527				367
Other			54				56
Deposits in other banks			5				5
Total interest income			5,341				5,748
INTEREST EXPENSE
Deposits			765				997
Other borrowings			226				341
Total interest expense			991				1,338
Net interest income			4,350				4,410
PROVISION FOR LOAN LOSSES			100				500
Net interest income, after provision for loan losses			4,250				3,910
NON-INTEREST INCOME
Gain on sale of loans			39				30
Loss on write down of securities			(111	)			-
Trust income			284				255
Service charges on deposit accounts			332				339
Other			222				228
Total non-interest income			766				852
NON-INTEREST EXPENSES
Salaries, wages, and employee benefits			2,095				1,996
Occupancy of premises			231				226
Amortization of core deposit intangible asset			14				14
Other operating			1,452				1,327
Total non-interest expenses			3,792				3,563
Income before federal income taxes			1,224				1,199
FEDERAL INCOME TAXES			215				267
NET INCOME		$	1,009			$	932
Net income per share, based on 1,674,980 shares in 2011 and 1,708,015 shares in 2010		$	0.60			$	0.55
Dividends declared per share		$	0.32			$	0.32

See notes to consolidated financial statements.

CROGHAN BANCSHARES, INC.

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

		Three months ended
		March 31
		2011				2010
		(Dollars in thousands,
		except per share data)
BALANCE AT BEGINNING OF PERIOD		$	56,513			$	56,127
Comprehensive Income:
Net income			1,009				932
Change in net unrealized gain on securities available-for-sale, net of reclassification adjustments and related income taxes			533				94
Total comprehensive income			1,542				1,026
Purchase of 3,000 treasury shares in 2011 and 10,759 in 2010			(76	)			(259	)
Cash dividends declared, $.32 per share in 2011 and 2010			(535	)			(545	)
BALANCE AT END OF PERIOD		$	57,444			$	56,349

See notes to consolidated financial statements.

CROGHAN BANCSHARES, INC.

Condensed Consolidated Statements of Cash Flows (Unaudited)

		Three months ended
		March 31
		2011				2010
		(Dollars in thousands)
NET CASH FLOW FROM OPERATING ACTIVITIES		$	1,653			$	1,207
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities of securities			8,930				4,698
Purchases of available-for-sale securities			(25,917	)			(7,723	)
Net decrease in loans			1,874				10,295
Additions to premises and equipment			(45	)			(78	)
Net cash provided by (used in) investing activities			(15,158	)			7,192
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits			5,985				(2,893	)
Net change in federal funds purchased and securities sold under agreements to repurchase			1,582				361
Payments on Federal Home Loan Bank borrowings			(3,000	)			-
Cash dividends paid			(536	)			(549	)
Purchase of treasury stock			(76	)			(259	)
Payment of deferred compensation			-				(72	)
Net cash provided by (used in) financing activities			3,955				(3,412	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(9,550	)			4,987
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD			21,856				16,724
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	12,306			$	21,711
SUPPLEMENTAL CASH FLOW DISCLOSURES
Cash paid during the year for:
Interest		$	1,095			$	1,394
Federal income taxes		$	-			$	21
NON-CASH OPERATING ACTIVITY:
Change in deferred income taxes on net unrealized gain on available-for-sale securities		$	274			$	(48	)
NON-CASH INVESTING ACTIVITY:
Change in net unrealized gain on available-for-sale securities		$	807			$	142
NON-CASH OPERATING AND INVESTING ACTIVITY:
Transfer of loans to other real estate owned		$	25			$	13

See notes to consolidated financial statements.

CROGHAN BANCSHARES, INC.
Notes to Consolidated Financial Statements
March 31, 2011
(Unaudited)

NOTE 1 - CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements of Croghan Bancshares, Inc. (“Croghan” or the “Corporation”) and its wholly-owned subsidiary, The Croghan Colonial Bank (the “Bank”), have been prepared without audit. In the opinion of management, all adjustments (including normal recurring adjustments) necessary to present fairly the Corporation’s consolidated financial position, results of operations and changes in cash flows have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (GAAP) have been omitted. The Corporation’s Annual Report to shareholders for the year ended December 31, 2010 (the “2010 Annual Report), 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 March 31, 2011, are not necessarily indicative of the operating results for the full year.

Management evaluated subsequent events through April 27, 2011, the date the financial statements were issued. Events or transactions occurring after March 31, 2011, but prior to when the consolidated financial statements were issued, that provided additional evidence about conditions that existed at March 31, 2011, have been recognized in the consolidated financial statements for the period ended March 31, 2011. Events or transactions that provided evidence about conditions that arose before the financial statements were issued, but did not exist at March 31, 2011 have not been recognized in the financial statements for the period ended March 31, 2011.

NOTE 2 - NEW ACCOUNTING PRONOUNCEMENTS

In April 2011, The Financial Accounting Standards Board (FASB) issued ASU 2011-02, A Creditors Determination of whether a Restructuring Is a Troubled Debt Restructuring. The new guidance clarifies when a loan modification or restructuring is considered a troubled debt restructuring (TDR) in order to address current diversity in practice and lead to more consistent application of accounting principles generally accepted in the United States of America. In evaluating whether a restructuring constitutes a TDR, a creditor must separately conclude that the restructuring constitutes a concession and the debtor is experiencing financial difficulties. Additionally, the guidance clarifies that a creditor is precluded from using the effective interest rate test in the debtor’s guidance on restructuring of payables (paragraph 470-60-55-10) when evaluating whether a restructuring constitutes a TDR. The Corporation has not yet evaluated whether the clarifications provided in ASU 2011-02 will change the amount of loan modifications or restructurings classified as TDR.

ASU 2011-01, Deferral of the Effective Date of Disclosures about TDR in Update No. 2010-20, deferred additional disclosures regarding TDR required by ASU 2010-20 until ASU 2011-02 was issued. For interim and annual periods ending after June 15, 2011, entities are required to enhance existing disclosures about the allowance for credit losses and the credit quality of financing receivables to include, at minimum, the nature and extent of a creditor’s TDR and financing receivables modified as TDR within the previous 12 months that defaulted.

In January 2010, FASB issued ASU 2010-06, Improving Disclosures about Fair Value Measurements, amending ASC Subtopic 820-10 to require disclosure of transfers in and out of levels 1 and 2 fair value measurement categories and activity in level 3 fair value measurement category. Additionally, the guidance amends existing disclosure requirements on level of disaggregation and inputs and valuation techniques. These disclosures are required for fiscal periods beginning after December 15, 2009, and for interim periods within those fiscal years except for activity in level 3 fair value measurement category, which are effective for annual and interim periods beginning after December 15, 2010. The Corporation has provided additional disclosure required by ASU 2010-06 in Note 4.

NOTE 3 – FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair values of recognized financial instruments were as follows:

		March 31, 2011								December 31, 2010
		Carrying				Fair				Carrying				Fair
		amount				value				amount				value
		(Dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents		$	12,306			$	12,306			$	21,856			$	21,856
Securities			161,805				161,805				144,623				144,628
Loans, net			286,351				289,036				288,350				290,603
Total		$	460,462			$	463,147			$	454,829			$	457,087
FINANCIAL LIABILITIES
Deposits		$	390,142			$	391,742			$	384,157			$	386,087
Federal funds purchased and securities sold under repurchase agreements			22,571				22,571				20,989				20,988
Federal Home Loan Bank borrowings			22,500				23,223				25,500				26,359
Total		$	435,213			$	437,536			$	430,646			$	433,434

The preceding summary does not include accrued interest receivable, cash surrender value of life insurance, dividends payable, and other liabilities which are also considered financial instruments. The estimated fair value of such items is considered to be their carrying amount.

The Bank also has unrecognized financial instruments which relate to commitments to extend credit and standby letters of credit. The contract amount of such financial instruments totaled, $76,720,000 at March 31, 2011 and $73,324,000 at December 31, 2010. Since many of these commitments are expected to expire without being drawn upon, this total does not necessarily represent future cash requirements.

The following methods and assumptions were used to estimate fair value of each class of financial instruments:

Cash and Cash Equivalents

Fair value is determined to be the carrying amount for these items because they represent cash or mature in 90 days or less and do not represent unanticipated credit concerns.

Securities

The fair value of securities (both available-for-sale and held-to-maturity) is determined based on quoted market prices of the individual securities or, if not available, estimated fair value is obtained by comparison to other known securities with similar risk and maturity characteristics. Such value does not consider possible tax ramifications or estimated transaction costs. The fair value of restricted stock is considered to be its carrying amount.

Loans

Fair value for loans is estimated for portfolios of loans with similar financial characteristics. For adjustable rate loans, which re-price at least annually and generally possess low risk characteristics, the carrying amount is believed to be a reasonable estimate of fair value. For fixed-rate loans, the fair value is estimated based on a discounted cash flow analysis, considering weighted average rates and terms of the portfolio, adjusted for credit and interest rate risk inherent in the loans. Fair value for non-performing loans is based on recent appraisals or estimated discounted cash flows. The estimated value of credit card loans is based on existing loans and does not include the value that relates to estimated cash flows from new loans generated from existing cardholders over the remaining life of the portfolio.

Deposit Liabilities

The fair value of core deposits, including demand deposits, savings accounts, and certain money market deposits, is the amount payable on demand. The fair value of fixed-rate certificates of deposit is estimated using the rates offered at year-end for deposits of similar remaining maturities. The estimated fair value does not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the marketplace.

Other Financial Instruments

The fair value of federal funds purchased and securities sold under repurchase agreements, as well as Federal Home Loan Bank borrowings, is determined based on a discounted cash flow analysis using current interest rates.

The fair value estimates of financial instruments are made at a specific point in time based on relevant market information. 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.

NOTE 4 – FAIR VALUE MEASUREMENTS

Assets and liabilities carried at fair value are required to be classified and disclosed according to this process for determining fair value. There are three levels of determining fair value:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; 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 correlation or other means.

Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect the Corporation’s own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include the Corporation’s own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment.

There were no financial instruments measured at fair value that moved to a lower level in the fair value hierarchy due to the lack of observable quotes in inactive markets for those instruments at March 31, 2011 and December 31, 2010.

The following summarizes financial assets (there were no financial liabilities) measured at fair value as of March 31, 2011 and December 31, 2010, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

		Level 1				Level 2				Level 3				Total
		inputs				inputs				inputs				fair value
		(Dollars in thousands)
March 31, 2011
Recurring:
Securities available-for-sale:
Obligations of U.S. Government agencies and corporations		$	-			$	95,296			$	-			$	95,296
Obligations of states and political subdivisions			-				62,315				-				62,315
Other			-				350				-				350
Total		$	-			$	157,961			$	-			$	157,961
Nonrecurring:
Other real estate owned		$	-			$	-			$	865			$	865
Impaired loans			-				-				18,832				18,832
Total		$	-			$	-			$	19,697			$	19,697

		Level 1				Level 2				Level 3				Total
		inputs				inputs				inputs				fair value
		(Dollars in thousands)
December 31, 2010
Recurring:
Securities available-for-sale:
Obligations of U.S. Government agencies and corporations		$	-			$	83,006			$	-			$	83,006
Obligations of states and political subdivisions			-				56,923				-				56,923
Other			-				350				-				350
Total		$	-			$	140,279			$	-			$	140,279
Nonrecurring:
Other real estate owned		$	-			$	-			$	1,443			$	1,443
Impaired loans			-				-				16,041				16,041
Total		$	-			$	-			$	17,484			$	17,484

The following summarizes the changes in other real estate loans measure at fair value on a
nonrecurring basis as follows (dollars in thousands):

Balance as of December 31, 2010		$	1,443
Transfer of loans			25
Impairment			(40	)
Net proceeds from sales			(518	)
Loss on sales			(45	)
Balance as of March 31, 2011		$	865

The following summarizes the changes in impaired loans measured at fair value on a nonrecurring
basis as follows (dollars in thousands):

Balance as of December 31, 2010		$	16,041
Net changes in impaired loans			3,259
Charge off of principal			(314	)
Net principal payments and advances			(154	)
Balance as of March 31, 2011		$	18,832

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, follows.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the corporation’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Corporation’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Corporation’s valuation methodologies are appropriate and consistent with other market participants, the use of

different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

Securities Available-for-Sale

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would typically include government bonds and exchange traded equities. If quoted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include corporate and municipal bonds, mortgage-backed securities, and asset-backed securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. The Corporation did not have any securities classified as Level 1 or Level 3 at March 31, 2011 and December 31, 2010.

Impaired Loans

The Corporation does not record impaired loans at fair value on a recurring basis. However, periodically, a loan is considered impaired and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Collateral values are estimated using Level 2 inputs, including recent appraisals and Level 3 inputs based on customized discounting criteria. Due to the significance of the Level 3 inputs, impaired loans fair values have been classified as Level 3.

Other Real Estate Owned

The Corporation values other real estate owned at the estimated fair value of the underlying collateral less expected selling costs. Such values are estimated primarily using appraisals and reflect a market value approach. Due to the significance of the Level 3 inputs, other real estate owned has been classified as Level 3.

NOTE 5 – SECURITIES

Amortized cost and fair value of available-for-sale and held-to-maturity securities were as follows (dollars in thousands):

		March 31, 2011								December 31, 2010
		Amortized				Fair				Amortized				Fair
		cost				value				cost				value
Obligations of U.S. Government agencies and corporations		$	94,398			$	95,296			$	81,845			$	83,006
Obligations of states and political subdivisions			61,637				62,315				57,316				56,923
Other			350				350				350				350
Total available-for-sale			156,385				157,961				139,511				140,279
Held-to-maturity - corporate debt obligation			-				-				500				505
Restricted stock			3,844				3,844				3,844				3,844
Total		$	160,229			$	161,805			$	143,855			$	144,628

Gross unrealized gains and losses on available-for-sale and held-to-maturity securities were as follows (dollars in thousands):

	March 31, 2011								December 31, 2010
	Gross				Gross				Gross				Gross
	unrealized gains				unrealized losses				unrealized gains				unrealized losses
Obligations of U.S. Government agencies and corporations		$	1,419			$	520			$	1,558			$	396
Obligations of states and			1,193				516				725				1,119
political subdivisions
Total available-for-sale			2,612				1,036				2,283				1,515
Held-to-maturity - corporate debt obligation			-				-				5				-
Total		$	2,612			$	1,036			$	2,288			$	1,515

NOTE 6 – LOANS

The following presents the balances and activity in the allowance for loan losses for the period ended March 31, 2011:

												Non-
							Residential					residential					Construction
							real					real					real										Credit
		Commercial					estate					estate					estate					Consumer					card				Total
		(Dollars in thousands)
Balance at December 31, 2010			$	542				$	1,857				$	2,049				$	347				$	85			$	75			$	4,955
Provision charged to expense				49					10					153					(85	)				(11	)			(16	)			100
Losses charged off				(19	)				(105	)				(209	)				-					(3	)			(3	)			(339	)
Recoveries				4					2					1					-					14				5				26
Balance at March 31, 2011			$	576				$	1,764				$	1,994				$	262				$	85			$	61			$	4,742

The following presents the balances in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2011:

												Non-
							Residential					residential					Construction
							real					real					real										Credit
		Commercial					estate					estate					estate					Consumer					card				Total
		(Dollars in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment			$	39				$	419				$	747				$	130				$	-			$	-			$	1,335
Collectively evaluated for impairment				537					1,345					1,247					132					85				61				3,407
Total			$	576				$	1,764				$	1,994				$	262				$	85			$	61			$	4,742
Loans:
Loans individually evaluated for impairment			$	340				$	2,530				$	14,487				$	1,475				$	-			$	-			$	18,832
Loans collectively evaluated for impairment				22,270					108,934					124,118					3,457					11,028				2,454				272,261
Total			$	22,610				$	111,464				$	138,605				$	4,932				$	11,028			$	2,454			$	291,093

The following represents loans individually evaluated for impairment by class of loans as of March 31, 2011:

									Allowance
	Unpaid								for loan
	principal				Recorded				losses
	balance				investment				allocated
	(Dollars in thousands)
With no related allowance recorded:
Agricultural loans		$	-			$	-			$	-
Commercial loans			229				229				-
Commercial overdraft LOC			-				-				-
Commercial non-profit/political subdivisions			-				-				-
Open-end home equity			9				9				-
1 – 4 family real estate (1st mortgages)			842				750				-
1 – 4 family real estate (Jr. mortgages)			-				-				-
Multifamily real estate			-				-				-
Farm real estate			-				-				-
Non-farm/non-residential real estate			10,443				9,858				-
Construction real estate			-				-				-
Consumer loans – vehicle			-				-				-
Consumer overdraft LOC			-				-				-
Consumer loans – mobile home			-				-				-
Consumer loans – home improvement			-				-				-
Consumer loans – other			-				-				-
MasterCard/VISA			-				-				-
With an allowance recorded:
Agricultural loans			-				-				-
Commercial loans			46				46				7
Commercial overdraft LOC			65				65				30
Commercial non-profit/political subdivisions			-				-				-
Open-end home equity			18				18				18
1 – 4 family real estate (1st mortgages)			1,764				1,602				367
1 – 4 family real estate (Jr. mortgages)			151				151				35
Multifamily real estate			-				-				-
Farm real estate			-				-				-
Non-farm/non-residential real estate			4,714				4,629				748
Construction real estate			1,845				1,475				130
Consumer loans – vehicle			-				-				-
Consumer overdraft LOC			-				-				-
Consumer loans – mobile home			-				-				-
Consumer loans – home improvement			-				-				-
Consumer loans – other			-				-				-
MasterCard/VISA			-				-				-
Total		$	20,126			$	18,832			$	1,335

Croghan categorizes loans into risk categories based on relevant information about the ability of the 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 Bank uses the following definitions for risk ratings:

	•		Special Mention – Loans classified special mention possess some credit deficiency or potential weakness that deserves close attention, but which do not yet warrant substandard classification. Such loans pose unwarranted financial risk that, if not corrected, could weaken the loan and increase risk of losses in the future.
	•		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 classified as substandard have well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are categorized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
	•		Doubtful – Loans classified as doubtful have all of the weaknesses of those classified as substandard. Additionally, however, these weaknesses make collection or liquidation in full based on existing conditions 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. The following presents loans as of March 31, 2011 that are collectively evaluated for impairment and are considered not impaired. Investments in each category found below do not include loans that are deemed impaired and analyzed individually for impairment which were presented previously:

					Special				Sub-								Not
	Pass				mention				standard				Doubtful				rated
	(Dollars in thousands)
Agricultural loans		$	2,488			$	-			$	-			$	-			$	-
Commercial loans			18,191				132				312				-				-
Commercial overdraft LOC			-				-				-				-				266
Commercial non-profit/political subdivisions			881				-				-				-				-
Open-end home equity			22,383				127				228				-				-
1 – 4 family real estate (1st mortgages)			76,353				2,797				2,725				-				-
1 – 4 family real estate (Jr. mortgages)			3,931				58				332				-				-
Multifamily real estate			9,638				-				2,971				-				-
Farm real estate			8,673				-				306				-				-
Non-farm/non-residential real estate			90,085				6,900				5,545				-				-
Construction real estate			2,265				222				970				-				-
Consumer loans – vehicle			2,763				9				9				-				-
Consumer overdraft LOC			-				-				-				-				171
Consumer loans – mobile home			858				25				5				-				-
Consumer loans – home improvement			160				-				-				-				-
Consumer loans – other			6,961				18				49				-				-
MasterCard/VISA			-				-				-				-				2,454
Total		$	245,630			$	10,288			$	13,452			$	-			$	2,891

The following presents the recorded investment by class of loans which are not on nonaccrual and have collectively been evaluated for impairment. These loans are pass rated loans as of March 31, 2011:

	30 – 89				90+
	days				days				Total				Not
	past due				past due				past due				past due				Total
					(Dollars in thousands)
Agricultural loans		$	-			$	-			$	-			$	2,488			$	2,488
Commercial loans			1				-				1				18,634				18,635
Commercial overdraft LOC			-				-				-				266				266
Commercial non-profit/political subdivisions			-				-				-				881				881
Open-end home equity			134				26				160				22,578				22,738
1 – 4 family real estate (1st mortgages)			2,020				419				2,439				79,436				81,875
1 – 4 family real estate (Jr. mortgages)			5				31				36				4,285				4,321
Multifamily real estate			339				-				339				12,270				12,609
Farm real estate			47				-				47				8,932				8,979
Non-farm/non-residential real estate			497				-				497				102,033				102,530
Construction real estate			-				-				-				3,457				3,457
Consumer loans – vehicle			9				-				9				2,772				2,781
Consumer overdraft LOC			1				1				2				169				171
Consumer loans – mobile home			5				-				5				883				888
Consumer loans – home improvement			-				-				-				160				160
Consumer loans – other			23				7				30				6,998				7,028
MasterCard/VISA			89				4				93				2,361				2,454
Total		$	3,170			$	488			$	3,658			$	268,603			$	272,261

The following presents the recorded investment in loans past due and over 90 days still on accrual, nonaccrual, and troubled debt restructuring by class of loans as of March 31, 2011:

	Loans past due								Troubled
	90+ days								debt
	still accruing				Nonaccrual				restructurings
	(Dollars in thousands)
Agricultural loans		$	-			$	-			$	-
Commercial loans			-				34				134
Commercial overdraft LOC			-				-				-
Commercial non-profit/political subdivisions			-				-				-
Open-end home equity			26				27				-
1 – 4 family real estate (1st mortgages)			419				2,067				401
1 – 4 family real estate (Jr. mortgages)			31				36				-
Multifamily real estate			-				-				-
Farm real estate			-				-				-
Non-farm/non-residential real estate			-				3,819				3,576
Construction real estate			-				475				1,000
Consumer loans – vehicle			-				-				-
Consumer overdraft LOC			1				-				-
Consumer loans – mobile home			-				-				-
Consumer loans – home improvement			-				-				-
Consumer loans – other			7				-				-
MasterCard/VISA			4				-				-
Total		$	488			$	6,458			$	5,111