<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q

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


                For the Quarterly Period Ended September 30, 2001


                                     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 [ ]

        1,913,711 Common shares were outstanding as of September 30, 2001



This document contains 12 pages.
<PAGE>

                            CROGHAN BANCSHARES, INC.

                                      Index

PART I.                                                                  Page(s)

   Item 1.  Financial Statements                                          3 - 7
   Item 2.  Management's Discussion and Analysis                          8 - 11
   Item 3.  Quantitative and Qualitative Disclosures About Market
                 Risk - There have been no material changes from the
                 information provided in the December 31, 2000 Form 10-K


PART II.

   Item 1.  Legal Proceedings - None
   Item 2.  Changes in Securities - None
   Item 3.  Defaults Upon Senior Securities - None
   Item 4.  Submission of Matters to a Vote of Security Holders - None
   Item 5.  Other Information - None
   Item 6.  Exhibits and Reports on Form 8-K:
              (a)  None
              (b)  A Form 8-K dated September 17, 2001 was filed on
                   September 17, 2001 reporting the resignation of
                   Joseph W. Berger as Treasurer/Assistant Secretary
                   of the Corporation

Signatures                                                                    12



                                       2
<PAGE>

                            CROGHAN BANCSHARES, INC.
                     Consolidated Balance Sheets (Unaudited)

<TABLE>
<CAPTION>
                                                                                           September 30,  December 31,
                                      ASSETS                                                  2001            2000
                                                                                       (Dollars in thousands, except par value)

<S>                                                                                           <C>         <C>
CASH AND CASH EQUIVALENTS
          Cash and due from banks                                                             $  9,378    $  13,046
          Interest-bearing deposits in other banks                                                --              8
          Federal funds sold                                                                     3,550         --
                                                                                              --------    ---------
                                      Total cash and cash equivalents                           12,928       13,054
                                                                                              --------    ---------
SECURITIES
          Available-for sale, at fair value                                                     46,617       53,502
          Held-to-maturity, at amortized cost, fair value of $5,786 in 2001
              and $5,088 in 2000                                                                 5,706        5,123
                                                                                              --------    ---------
                                      Total securities                                          52,323       58,625
                                                                                              --------    ---------

LOANS                                                                                          277,186      258,855
          Less: Allowance for loan losses                                                        3,357        3,242
                                                                                              --------    ---------
                                      Net loans                                                273,829      255,613
                                                                                              --------    ---------

Premises and equipment, net                                                                      6,505        6,756
Accrued interest receivable                                                                      2,656        2,738
Goodwill                                                                                         6,273        6,751
Other assets                                                                                     4,095        3,895
                                                                                              --------    ---------
TOTAL ASSETS                                                                                  $358,609    $ 347,432
                                                                                              ========    =========

          LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
          Deposits:
             Demand, non-interest bearing                                                     $ 30,513    $  34,865
             Savings, NOW and Money Market deposits                                            115,451      114,993
             Time                                                                              140,196      134,346
                                                                                              --------    ---------
                                      Total Deposits                                           286,160      284,204

          Federal funds purchased and securities sold under repurchase agreements               12,947       14,009
          Federal Home Loan Bank borrowings                                                     16,000        9,000
          Dividends payable                                                                        421          402
          Other liabilities                                                                      3,402        2,351
                                                                                              --------    ---------
                                      Total liabilities                                        318,930      309,966
                                                                                              --------    ---------

STOCKHOLDERS' EQUITY
          Common stock, $12.50 par value. Authorized 3,000,000 shares; issued and
              outstanding 1,913,711 shares in 2001 and 1,912,458 in 2000                        23,921        23,906
          Surplus                                                                                  114           102
          Retained earnings                                                                     15,054        13,479
          Accumulated other comprehensive income (loss)                                            590           (21)
                                                                                              --------     ---------
                                      Total stockholders' equity                                39,679        37,466
                                                                                              --------     ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                    $358,609     $ 347,432
                                                                                              ========     =========
</TABLE>


See note to consolidated financial statements.



                                       3
<PAGE>

                            CROGHAN BANCSHARES, INC.
   Consolidated Statements of Operations and Comprehensive Income (Unaudited)

<TABLE>
<CAPTION>
                                                                                                           Three months ended
                                                                                                              September 30
                                                                                                            2001         2000
                                                                                                          (Dollars in thousands,
                                                                                                          except per share data)

<S>                                                                                                        <C>          <C>
INTEREST AND DIVIDEND  INCOME
          Loans, including fees                                                                            $5,731       $5,564
          Securities:
             U.S. Treasury                                                                                     45          215
             Obligations of U.S. Government agencies and corporations                                         441          551
             Obligations of states and political subdivisions                                                 135          148
             Other                                                                                             86           78
          Federal funds sold                                                                                   52            2
                                                                                                           ------       ------
                                      Total interest and dividend income                                    6,490        6,558
                                                                                                           ------       ------

INTEREST EXPENSE
          Deposits                                                                                          2,405        2,480
          Other borrowings                                                                                    313          430
                                                                                                           ------       ------
                                      Total interest expense                                                2,718        2,910
                                                                                                           ------       ------

                                      Net interest income                                                   3,772        3,648

PROVISION FOR LOAN LOSSES                                                                                     180          120
                                                                                                           ------       ------
                                      Net interest income, after provision for loan losses                  3,592        3,528
                                                                                                           ------       ------

NON-INTEREST INCOME
          Trust income                                                                                        133          121
          Service charges on deposit accounts                                                                 238          236
          Gain (loss) on sale of securities                                                                    41          --
          Gain (loss) on sale of loans                                                                         --          --
          Other                                                                                               296          240
                                                                                                           ------       ------
                                      Total non-interest income                                               708          597
                                                                                                           ------       ------
NON-INTEREST EXPENSES
          Salaries, wages and employee benefits                                                             1,518        1,471
          Occupancy of premises                                                                               158          150
          Amortization of goodwill                                                                            160          160
          Other general and administrative                                                                    875          917
                                                                                                           ------       ------
                                      Total non-interest expenses                                           2,711        2,698
                                                                                                           ------       ------
                                      Income before federal income taxes                                    1,589        1,427
FEDERAL INCOME TAXES                                                                                          541          486
                                                                                                           ------       ------
NET INCOME                                                                                                 $1,048       $  941
                                                                                                           ======       ======
          Net income per share, based on 1,913,601 shares in 2001 and 1,911,561 shares in 2000             $ 0.55       $ 0.49
                                                                                                           ======       ======
          Dividends declared, based on 1,913,711 shares in 2001 and 1,912,188 shares in 2000               $ 0.22       $ 0.21
                                                                                                           ======       ======
COMPREHENSIVE INCOME                                                                                       $1,362       $1,113
                                                                                                           ======       ======
</TABLE>


See note to consolidated financial statements.



                                       4
<PAGE>


                            CROGHAN BANCSHARES, INC.
   Consolidated Statements of Operations and Comprehensive Income (Unaudited)

<TABLE>
<CAPTION>
                                                                                                        Nine months ended
                                                                                                           September 30
                                                                                                        2001         2000
                                                                                                      (Dollars in thousands,
                                                                                                      except per share data)

<S>                                                                                                    <C>           <C>
INTEREST AND DIVIDEND INCOME
          Loans, including fees                                                                        $17,075       $15,964
          Securities:
             U.S. Treasury                                                                                 323           696
             Obligations of U.S. Government agencies and corporations                                    1,259         1,608
             Obligations of states and political subdivisions                                              419           462
             Other                                                                                         249           227
          Federal funds sold                                                                               218            44
                                                                                                       -------       -------
                                      Total interest and dividend income                                19,543        19,001
                                                                                                       -------       -------

INTEREST EXPENSE
          Deposits                                                                                       7,434         7,199
          Other borrowings                                                                                 964           864
                                                                                                       -------       -------
                                      Total interest expense                                             8,398         8,063
                                                                                                       -------       -------

                                      Net interest income                                               11,145        10,938

PROVISION FOR LOAN LOSSES                                                                                  420           295
                                                                                                       -------       -------
                                      Net interest income, after provision for loan losses              10,725        10,643
                                                                                                       -------       -------

NON-INTEREST INCOME
          Trust income                                                                                     389           356
          Service charges on deposit accounts                                                              694           689
          Gain (loss) on sale of securities                                                                 41            --
          Gain (loss) on sale of loans                                                                      --            --
          Other                                                                                            688           676
                                                                                                       -------       -------
                                      Total non-interest income                                          1,812         1,721
                                                                                                       -------       -------
NON-INTEREST EXPENSES
          Salaries, wages and employee benefits                                                          4,610         4,571
          Occupancy of premises                                                                            483           479
          Amortization of goodwill                                                                         479           479
          Other general and administrative                                                               2,694         2,778
                                                                                                       -------       -------
                                      Total non-interest expenses                                        8,266         8,307
                                                                                                       -------       -------
                                      Income before federal income taxes                                 4,271         4,057
FEDERAL INCOME TAXES                                                                                     1,452         1,372
                                                                                                       -------       -------
NET INCOME                                                                                             $ 2,819       $ 2,685
                                                                                                       =======       =======

          Net income per share, based on 1,913,189 shares in 2001 and 1,910,172 shares in 2000         $  1.47       $  1.41
                                                                                                       =======       =======
          Dividends declared, based on 1,913,711 shares in 2001 and 1,912,188 shares in 2000           $  0.65       $  0.61
                                                                                                       =======       =======

COMPREHENSIVE INCOME                                                                                   $ 3,430       $ 2,826
                                                                                                       =======       =======
</TABLE>


See note to consolidated financial statements.



                                       5
<PAGE>

                            CROGHAN BANCSHARES, INC.
                Consolidated Statements of Cash Flows (Unaudited)

<TABLE>
<CAPTION>
                                                                                                             Nine months ended
                                                                                                               September 30
                                                                                                             2001         2000
                                                                                                           (Dollars in thousands)

<S>                                                                                                         <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES
          Net income                                                                                        $  2,819    $  2,685
          Adjustments to reconcile net income to net cash provided by operating activities:
                     Depreciation and amortization                                                               947         968
                     Provision for loan losses                                                                   420         295
                     Deferred federal income taxes                                                              (116)        (14)
                     FHLB stock dividends                                                                        (86)        (82)
                     Increase in cash value of split dollar life insurance policies                             (126)       (117)
                     Net amortization of security premiums and discounts                                          83          71
                     Loss (gain) on sale of securities                                                           (41)         --
                     Loss (gain) on sale of loans                                                                 --          --
                     Loss (gain) on disposal of equipment                                                         --           1
                     Decrease (increase) in accrued interest receivable                                           82        (411)
                     Decrease (increase) in  other assets                                                         26         147
                     Increase (decrease) in other liabilities                                                    851         239
                                                                                                            --------    --------
                                   Net cash provided  by operating activities                                  4,859       3,782
                                                                                                            --------    --------
CASH FLOWS FROM INVESTING ACTIVITIES
          Purchases of securities:
                     Available-for-sale                                                                      (25,335)     (5,500)
                     Held-to-maturity                                                                           (514)       (713)
          Proceeds from maturities of securities                                                              28,079      15,084
          Proceeds from sales of available-for-sale securities                                                 5,041          --
          Proceeds from sale of loans                                                                             --          --
          Net decrease (increase) in loans                                                                   (18,736)    (12,689)
          Additions to premises and equipment                                                                   (217)       (207)
          Proceeds from sale of equipment                                                                         --          --
                                                                                                            --------    --------
                                    Net cash provided by (used in) investing activities                      (11,682)     (4,025)
                                                                                                            --------    --------
CASH FLOWS FROM FINANCING ACTIVITIES
          Net increase (decrease) in deposits                                                                  1,956     (16,423)
          Increase (decrease) in federal funds purchased and securities sold under repurchase agreements      (1,062)     11,119
          Increase (decrease) in Federal Home Loan Bank borrowings                                             7,000       9,000
          Proceeds from issuance of common stock                                                                  27          76
          Cash dividends paid                                                                                 (1,224)     (1,126)
                                                                                                            --------    --------
                                     Net cash provided by (used in) financing activities                       6,697       2,646
                                                                                                            --------    --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                            (126)      2,403

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                              13,054      15,793
                                                                                                            --------    --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                                  $ 12,928    $ 18,196
                                                                                                            ========    ========

SUPPLEMENTAL DISCLOSURES
             Cash paid during the year for:
                        Interest                                                                            $  8,162    $  8,016
                                                                                                            ========    ========
                        Federal income taxes                                                                $    985    $  1,275
                                                                                                            ========    ========
</TABLE>


See note to consolidated financial statements.



                                       6
<PAGE>

                            CROGHAN BANCSHARES, INC.
                    Note to Consolidated Financial Statements
                               September 30, 2001
                                   (Unaudited)

(1) Consolidated Financial Statements

      The consolidated financial statements have been prepared by Croghan
      Bancshares, Inc. (the "Corporation") without audit. In the opinion of
      management, all adjustments (which include only normal recurring
      adjustments) necessary to present fairly the Corporation's 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 have been omitted. The results of operations for the
      period ended September 30, 2001 are not necessarily indicative of the
      operating results for the full year.



                                       7
<PAGE>

                            CROGHAN BANCSHARES, INC.
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

When or if used in Croghan Bancshares, Inc. (referred to as "Croghan" or the
"Corporation) Securities and Exchange Commission filings, or other public or
shareholder communications, or in oral statements made with the approval of an
authorized executive officer, the words or phrases: "anticipate", "would be",
"will allow", "intends to", "will likely result", "are expected to", "will
continue", " is anticipated", "is estimated", "is projected", or similar
expressions are intended to identify "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Any such
statements are subject to risks and uncertainties that include but are not
limited to: changes in economic conditions in the Corporation's market area,
changes in policies by regulatory agencies, fluctuations in interest rates,
demand for loans in the Corporation's market area, and competition. All or some
of these factors could cause actual results to differ materially from historical
earnings and those presently anticipated or projected.

The Corporation cautions readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made, and advises
readers that various factors including regional and national economic
conditions, substantial changes in the levels of market interest rates, credit
and other risks associated with lending and investing activities, and
competitive and regulatory factors could affect the Corporation's financial
performance and cause the Corporation's actual results for future periods to
differ materially from those anticipated or projected. The Corporation does not
undertake, and specifically disclaims any obligation, to update any
forward-looking statements to reflect occurrences or unanticipated events or
circumstances after the date of such statements.


PERFORMANCE SUMMARY

Assets at September 30, 2001 totaled $358,609,000 compared to $347,432,000 at
2000 year end. Total loans increased to $277,186,000 from $258,855,000 at year
end and total deposits increased to $286,160,000 from $284,204,000 at year end.

Net income for the quarter ended September 30, 2001 was $1,048,000 or $.55 per
common share compared to $941,000 or $.49 per common share for the same period
in 2000. Net income for the nine-month period ended September 30, 2001 was
$2,819,000 or $1.47 per common share compared to $2,685,000 or $1.41 per common
share for the same period in 2000. Operating results for 2001 continued to be
positively impacted by the volume of loan growth and close attention to
non-interest expenses.

DEPOSITS, LOANS, SECURITIES, AND STOCKHOLDERS' EQUITY

Total deposits at September 30, 2001 increased by a modest $1,956,000 or 0.7
percent from 2000 year end. The liquid deposit category (demand, savings, NOW
and money market deposit accounts) decreased $3,894,000 while the time deposit
category increased $5,850,000. Croghan continues to experience active
competition for core deposits from traditional sources (e.g., other banks and
credit unions) and non-traditional sources (e.g., brokerage firms). Croghan
continues to refine and enhance its deposit product offerings in an effort to
meet customers' needs.

Total loans increased $18,331,000 or 7.1 percent from 2000 year end, and
increased $25,391,000 or 10.1 percent from the same period in 2000. A
significant portion of the increase over the last nine months has occurred in
the residential and non-residential real estate loan portfolios. Total
securities have decreased by $6,302,000 or 10.7 percent from 2000 year end. The
proceeds from maturing



                                       8
<PAGE>

securities have been used primarily to fund loan growth that has been
experienced during the first nine months of 2001.

Stockholders' equity at September 30, 2001 increased to $39,679,000 or $20.73
book value per common share compared to $37,466,000 or $19.59 book value per
common share at December 31, 2000. The balance in stockholders' equity at
September 30, 2001 included accumulated other comprehensive income, which
consisted of the net unrealized gain on securities classified as
available-for-sale. At September 30, 2001, Croghan held $46,617,000 in
available-for-sale securities with a net unrealized gain of $590,000, net of
income taxes. This compares to 2000 year-end holdings of $53,502,000 with a net
unrealized loss of $21,000, net of income taxes. Consistent with the
Corporation's quarterly dividend policy, a dividend of $.22 per share was
declared on September 11, 2001 to be distributed on October 31, 2001.


NET INTEREST INCOME

Net interest income, which represents the excess revenue generated from
interest-earning assets over the interest cost of funding those assets,
increased $124,000 for the quarter ended September 30, 2001 compared to the same
period in 2000, and increased $207,000 for the nine-month period ended September
30, 2001 compared to the same period in 2000. The net interest yield (net
interest income divided by average earning assets) was 4.63 percent for the
quarter ended September 30, 2001 compared to 4.54 percent for the quarter ended
September 30, 2000, and was 4.64 percent for the nine-month period ended
September 30, 2001 compared to 4.58 percent for the same period in 2000. The
yields in 2001 were accomplished even though the Federal Reserve Open Market
Committee lowered the targeted Federal Funds rate by 350 basis points during the
first nine months. During the remainder of 2001, assets yields are anticipated
to drop at a faster rate than the interest sensitive liabilities. Consequently,
this will exert downward pressure on net interest yields throughout the rest of
the year.


PROVISION FOR LOAN LOSSES AND THE ALLOWANCE FOR LOAN LOSSES

The following table details factors relating to the provision and allowance for
loan losses for the periods noted:


<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
                                                       Nine Months Ended    Twelve Months Ended
                                                         September 30,          December 31,
                                                             2001                  2000
                                                                (Dollars in thousands)

<S>                                                         <C>                  <C>
Provision for loan losses charged to expense                $  420               $  435
Net loan charge-offs                                           305                  389
Net loan charge-offs as a percent of
   average outstanding net loans                              .11%                  .16%
Nonaccrual loans                                            $1,954               $  628
Loans past due 90 days or more                               1,274                1,144
Potential problem loans, other than those
   past due 90 days or more, nonaccrual,
   or restructured                                           5,888                1,602
Allowance for loan losses                                    3,357                3,242
Allowance for loan losses as a
   percent of period-end loans                                1.21%                1.25%
-----------------------------------------------------------------------------------------------
</TABLE>



                                       9
<PAGE>

The provision for loan losses for the first nine months of 2001 totaled $420,000
compared to $295,000 expensed during the same period in 2000. Actual net loan
charge offs were $305,000 for the first nine months of 2001 compared to $303,000
during the same period in 2000.

Nonaccrual loans totalled $1,954,000 at September 30, 2001, including one
non-residential real estate loan in the amount of $831,000, compared to $628,000
at December 31, 2000. Loans past due 90 days or more increased $130,000 and
other potential problem loans increased by $4,286,000 from the December 31, 2000
figures. The increase in potential problem loans can be attributed to one
customer with two non-residential real estate loans totaling $4,169,000 which
were recently classified as substandard. These two loans are collateralized by
commercial real estate with appraised values well in excess of the loan amounts.
The loans are not currently past due and, since origination, they have never
been past due more than 10 days. All of the above-noted asset quality trends
will continue to be monitored throughout 2001 to ensure adequate provisions are
calculated and expensed.

It is the Corporation's policy to maintain the allowance for loan losses at a
level to provide for reasonably foreseeable losses. To accomplish this
objective, a loan review process is conducted by an outside consulting firm,
which facilitates the early identification of problem loans and helps to ensure
sound credit decisions. Management considers the allowance at September 30, 2001
to be adequate to provide for losses inherent to the loan portfolio.


NON-INTEREST INCOME

Total non-interest income increased $111,000 or 18.6 percent for the quarter
ended September 30, 2001 compared to the same period in 2000, and increased
$91,000 or 5.3 percent for the nine-month period ended September 30, 2001
compared to the same period in 2000. Trust department fee income increased
$12,000 between comparable quarterly periods and $33,000 between comparable
nine-month periods. Service charges on deposit accounts increased only slightly
between comparable quarterly and nine-month periods.

Non-interest income for the quarter ended September 30, 2001 included net gains
on security sales of $41,000 (there were none in 2000). These gains related to
the sale of Treasury notes and obligations of U. S. government agencies, which
were due in less than one year. The proceeds were used to purchase investments
in U. S. Government agencies with longer maturity horizons.

Other operating income increased $56,000 or 23.3% between comparable quarterly
periods and $12,000 between comparable nine-month periods. Included in the 2001
figures is a net gain on the sale of other real estate and other repossessed
assets totaling $44,000. There were no such gains reported in 2000.


NON-INTEREST EXPENSES

Total non-interest expenses increased $13,000 or 0.5 percent for the quarter
ended September 30, 2001 compared to the same period in 2000, and decreased
$41,000 or 0.5 percent for the nine-month period ended September 30, 2001
compared to the same period in 2000. Salaries, wages and employee benefits
increased $47,000 between comparable quarterly periods and $39,000 between
comparable nine-month periods.

Croghan continues to benefit from a reduction in the number of its full-time
equivalent employees (from 170 at December 31, 2000 to 160 at September 30,
2001). In addition, during the third quarter of 2001, Croghan engaged an outside
consulting firm to commence an organizational audit. The



                                       10
<PAGE>

purpose of this audit is to review the organizational structure, staffing needs,
and work processes in an effort to improve the Corporation's productivity and
overall efficiencies. Croghan has been adversely impacted by higher costs
related to medical insurance benefits provided to its employees. Effective
August 1, 2001, Croghan changed to a fully-insured health insurance plan from a
self-insured plan in an effort to help control the rising costs of providing
health care coverage.

The occupancy expense of premises increased by $8,000 between comparable
quarterly periods and $4,000 between comparable nine-month periods. Goodwill
amortization associated with the 1996 purchase of Union Bancshares Corp. was
unchanged for the comparable quarterly and nine-month periods. Other general and
administrative expenses decreased $42,000 between comparable quarterly periods,
and $84,000 between comparable nine-month periods. The reduction was due
primarily to decreases in stationary and supplies costs and software
amortization expenses.


FEDERAL INCOME TAX EXPENSE

Federal income tax expense increased $55,000 or 11.3 percent between quarterly
periods, and $80,000 or 5.8 percent between comparable nine-month periods. The
Corporation's effective tax rate for the nine-month period ended September 30,
2001 was 34.0 percent compared to 33.8 percent for the same period in 2000. The
higher effective tax rate is the result of a decrease in tax-exempt interest
income, due in part to the lower interest rate environment.


LIQUIDITY AND CAPITAL RESOURCES

Average federal funds sold positions of $5,626,000 and $6,280,000 were
maintained for the quarterly and nine-month periods, respectively, ended
September 30, 2001. This compares to $56,000 and $921,000 for the quarterly and
nine-month periods, respectively, ended September 30, 2000.

Short-term borrowings of federal funds purchased and repurchase agreements
averaged $9,911,000 and $10,141,000 for the quarterly and nine-month periods,
respectively, ended September 30, 2001. This compares to $15,912,000 and
$12,979,000 for the quarterly and nine-month periods, respectively, ended
September 30, 2000.

Borrowings from the Federal Home Loan Bank totalled $16,000,000 at September 30,
2001 compared to $9,000,000 at December 31, 2000. The additional borrowings were
used to fund the loan growth experienced during 2001.

Capital expenditures for premises and equipment totalled $217,000 for the
nine-month period ended September 30, 2001. This compares to $207,000 for the
same period in 2000. The increase was partially due to the addition and
replacement of personal computer workstations.


RECENTLY ISSUED ACCOUNTING PRONOUNCEMENT

In June 2001, the Financial Accounting Standards Board issued Statement No. 142,
"Goodwill and Other Intangible Assets" which addresses financial reporting and
accounting for goodwill and other intangible assets acquired in a business
combination. Under the provisions of Statement 142, goodwill will no longer be
amortized but will be tested for impairment, which is the condition that exists
when the carrying amount of goodwill exceeds its implied fair value.

Croghan will be adopting the provisions of Statement 142 effective January 1,
2002, with respect to the goodwill resulting from the 1996 acquisition of Union
Bancshares Corp. The future impact on the consolidated financial statements as a
result of this pronouncement has not yet been determined.



                                       11
<PAGE>

                                   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.


                             CROGHAN BANCSHARES, INC
                         -------------------------------
                                   Registrant


Date:  October 25, 2001                       /s/ Steven C. Futrell
                                              ----------------------------
                                              Steven C. Futrell, President


Date:  October 25, 2001                       /s/ Allan E. Mehlow
                                              ---------------------------
                                              Allan E. Mehlow, Treasurer



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