Camco Financial (CAFI) 8-K Camco Financial Announces Third Quarter 2006 Earnings

EXHIBIT 99

NEWS RELEASE

Release Date:October 27, 2006

Camco Financial Announces Third Quarter 2006 Earnings

Cambridge, Ohio (Nasdaq: CAFI) — Camco Financial Corporation (“Camco”) reported net earnings for the quarter ended September 30, 2006 of $1.12 million or $.15 per share as compared with net earnings of $2.04 million or $.27 per share for the same quarter in 2005.

For the nine months ended September 30, 2006 Camco reported net earnings of $4.61 million compared to $6.30 million of net earnings reported for the same nine month period in 2005. Basic earnings per share for the nine months ended September 30, 2006 were $.61 compared to $.82 for the same nine month period in 2005.

Camco recently announced a quarterly dividend of $.15 per share which was payable October 20, 2006. This dividend represents an annualized yield of 4.54% on Camco’s September 30^th quarter-end market value.

President & CEO Richard C. Baylor commented, “Our decreased earnings in the third quarter are due primarily to the interest rate environment in which we find ourselves. The resulting net interest margin reduction, coupled with lower loan production than previous periods has placed continued downward pressure on our earnings. However, we remain focused on the diversification of our balance sheet, managing asset quality, as well as relationship building and continued vigilance on operational efficiency.”

Mr. Baylor continued, “We are pleased to announce the opening of our 23rd full service banking center in the northern Cincinnati suburb of Mason, Ohio. And we anticipate opening our 24th banking center in London, Ohio, just west of Columbus, in the first quarter of 2007.”

“The new branch developments are the result of the growth initiative undertaken in 2005 which consists of directing efforts to fill in the bank’s existing footprint as the market for acquisition growth diminished,” Baylor noted.

Strategic Vision:Camco continues to execute and manage its long-term strategic plan. This plan, which encompasses the diversification of the balance sheet, primarily through: increasing commercial, commercial real estate and consumer loan portfolios as well as transaction-based deposits. Critical to this strategy is the future growth of the balance sheet and the corresponding increase in net interest income. Complementary revenue sources to enhance net interest income are being actively pursued while management remains vigilant to contain operating expenses in this transitional period. Growth is being developed by opening new branch offices in existing or adjacent markets versus acquisitions.

Review of Significant Areas:

Net Interest Margin:During the third quarter of 2006, the yield on earning assets was unable to keep pace with the increasing cost of interest-bearing liabilities, when compared with the second quarter of 2006. The yield on earning assets increased to 6.22% in the third quarter 2006 from 6.04% in the second quarter 2006, or 18 basis points. Conversely, the cost of interest-bearing liabilities increased to 3.70% in the third quarter 2006 from 3.41% in the second quarter 2006, or 29 basis points. This tightening of the net interest margin can be attributable to the current inverted yield curve. Camco continues to place emphasis on growing the commercial, commercial real estate and consumer loan portfolios and the ability to effectively manage overall cost of funds. A reduction of wholesale funding through the Federal Home Loan Bank of Cincinnati occurred in the third quarter as a result of lower loan production.

Non-Interest Income:For the quarter ended September 30, 2006, total non-interest income decreased 19.3% to $1.25 million from $1.54 million for the same period last year. This decrease of $297,000 was primarily related to a decrease in the amount of gain on loans sold into the secondary market of $159,000, and a decrease in late charges, rent and other of $176,000. A slow down in housing sales attributable to the region’s slowing economy continues to negatively impact our loan production efforts.

Mortgage servicing rights had a net reduction in the quarter ended September 30, 2006 of $113,000 compared to a net reduction of $276,000 in the quarter ended September 30, 2005. Loan sales were down 43.2% to $9.6 million versus $16.9 million while the overall value of mortgage servicing rights increased from 1.22% to 1.32% as a percent of loans serviced.

Operating Expenses:For the quarter ended September 30, 2006, operating expenses were $6.41 million compared to $5.73 million for the comparable period in 2005, or an increase of 11.8%. The $675,000 increase can be mainly attributable to employee compensation and benefits increasing $210,000 due to the hiring of key management positions and increased benefits costs. Franchise taxes increased $214,000 and other operating expenses increased $233,000 due primarily to increased transaction processing costs. As a percentage of average assets, operating expenses increased to 2.33% from 2.13%.

Asset Quality:Non-performing loans as a percentage of loans increased from 1.52% at September 30, 2005 to 1.97% at September 30, 2006. The allowance for loan losses as a percentage of loans was .85% at September 30, 2006. At September 30, 2006, total non-performing loans were $16.6 million, of which 64.4% were single family residential loans.

The majority of the increase in non-performing loans was commercial real estate which was primarily related to investment property lending and multi-family loans that have experienced higher levels of delinquency in 2006.

It is management’s belief that these higher levels of delinquency can be attributable to general economic conditions including Ohio’s unemployment rate of 5.7%, which is above the national rate of 4.7% seasonably adjusted. The allowance for loan losses is maintained at a level believed adequate by management to absorb probable losses inherent in the loan portfolio.

Camco Financial Corporation, holding company for Advantage Bank, is a multi-state financial holding company headquartered in Cambridge, Ohio. Advantage Bank and its affiliates offer relationship banking that includes commercial, business and consumer financial services, internet banking and title insurance services from 30 offices in 23 communities in Ohio, Kentucky and West Virginia.

Additional information about Camco Financial may be found on Camco’s web site: www.advantagebank.com.

The words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties including changes in economic conditions in the Company’s market area, changes in policies by regulatory agencies, fluctuations in interest rates, demands for loans in the Company’s market area and competition, that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Financials Attached.

Camco Financial Corporation
Condensed Consolidated Statements of Financial Condition
(In thousands, except for per share data and Shares Outstanding)

	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
	9/30/06			6/30/06			3/31/06			12/31/05			9/30/05
Assets
Cash and Cash Equivalents		21,459			32,938			29,861			33,085			34,274
Investments		113,625			114,586			109,460			113,690			113,206
Loans Held for Sale		3,423			2,115			3,325			1,968			5,317
Loans Receivable		844,921			852,921			847,426			853,701			856,468
Allowance for Loan Loss		(7,084	)		(7,639	)		(7,321	)		(6,959	)		(6,642	)
Loans Receivable, Net		837,837			845,282			840,105			846,742			849,826
Goodwill		6,683			6,683			6,683			6,683			6,683
Other Assets		74,570			72,069			68,996			69,080			68,014
Total Assets	$	1,057,597		$	1,073,673		$	1,058,430		$	1,071,248		$	1,077,320
Liabilities
Deposits		684,911			681,905			676,376			660,242			669,908
Borrowed Funds		268,935			290,441			280,280			307,223			305,211
Other Liabilities		13,055			11,224			11,543			13,020			11,835
Total Liabilities		966,901			983,570			968,199			980,485			986,954
Stockholders Equity		90,696			90,103			90,231			90,763			90,366
Total Liabilities and
Stockholders’ Equity	$	1,057,597		$	1,073,673		$	1,058,430		$	1,071,248		$	1,077,320
Stockholders’ Equity to		8.58	%		8.39	%		8.52	%		8.47	%		8.39	%
Total Assets
Total Shares Outstanding		7,460,813			7,488,813			7,536,713			7,578,713			7,621,385
Book Value Per Share	$	12.16		$	12.03		$	11.97		$	11.98		$	11.86

Camco Financial Corporation
Condensed Consolidated Statements of Earnings
Quarterly Information
(In thousands, except for per share data and shares outstanding)

		3 Months			3 Months			3 Months			3 Months			3 Months
		Ended			Ended			Ended			Ended			Ended
		9/30/06			6/30/06			3/31/06			12/31/05			9/30/05
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Interest Income:
Loans			13,860			13,491			13,249			13,163		$	12,729
Mortgage-backed securities			602			608			633			655			679
Investment securities			590			539			480			466			358
Interest-bearing deposits and other			848			825			790			873			689
Total Interest Income			15,900			15,463			15,152			15,157			14,455
Interest Expense:
Deposits			5,744			5,108			4,424			4,136			4,009
Borrowings			2,904			2,900			2,949			2,922			2,893
Total Interest Expense			8,648			8,008			7,373			7,058			6,902
Net Interest Income			7,252			7,455			7,779			8,099			7,553
Provision for Losses on Loans			360			360			360			520			360
Net Interest Income After Provision for Loan Losses			6,892			7,095			7,419			7,579			7,193
Noninterest Income
Late charges, rent and other			642			726			462			550			818
Loan servicing fees			354			353			360			363			368
Service charges and other fees on deposits			325			431			352			393			370
Gain on sale of loans			56			80			99			119			215
Mortgage servicing rights			(113	)		(46	)		(22	)		287			(276	)
Gain on sale of investment, mbs & fixed assets			23			1			—			36			66
Gain on sale of real estate acq’d through foreclosure			(41	)		(80	)		55			(39	)		(18	)
Total noninterest income			1,246			1,465			1,306			1,709			1,543
Non interest expense
Employee compensation and benefits			3,218			3,016			3,249			2,932			3,008
Occupancy and equipment			825			780			780			711			780
Data processing			316			333			393			373			317
Advertising			319			220			303			341			345
Franchise taxes			285			228			246			50			71
Other operating			1,447			1,366			1,291			1,237			1,214
Total noninterest expense			6,410			5,943			6,262			5,644			5,735
Net Income — Before Income Tax			1,728			2,617			2,463			3,644			3,001
Provision for income taxes			608			802			784			1,174			963
Reported Net Income			1,120			1,815			1,679			2,470			2,038
Adjusted for non-recurring items
Sale of branches			0			0			0			0			0
FHLB Prepayment costs (net of tax)			0			0			0			0			0
Net Earnings from Operations			1,120			1,815			1,679			2,470			2,038
Earnings Per Share Reported:
	Basic	$	0.15		$	0.24		$	0.22		$	0.32		$	0.27
	Diluted	$	0.15		$	0.24		$	0.22		$	0.32		$	0.27
Basic Weighted Number of
Shares Outstanding			7,474,665			7,521,529			7,563,452			7,610,499			7,632,132
Diluted Weighted Number of
Shares Outstanding			7,477,519			7,524,787			7,567,170			7,614,127			7,638,147

Camco Financial Corporation
Selected Ratios and Statistics
Periods Ended September 30, 2006 and 2005
(In thousands, except for per share data and shares outstanding)

	9 Months			9 Months			3 Months			3 Months
	Ended			Ended			Ended			Ended
	9/30/06			9/30/05			9/30/06			9/30/05
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Reported:
Return on Average Equity		6.78	%		9.28	%		4.95	%		8.96	%
Return on Average Assets		0.58	%		0.79	%		0.42	%		0.76	%
Interest Rate Spread		2.64	%		2.74	%		2.52	%		2.72	%
Net Interest Margin		2.94	%		2.95	%		2.84	%		2.94	%
Yield on earning assets		6.07	%		5.50	%		6.22	%		5.64	%
Cost of deposits		3.16	%		2.34	%		3.50	%		2.50	%
Cost of funds		4.03	%		3.69	%		4.19	%		3.81	%
Total cost of interest bearing liabilities		3.43	%		27.60	%		3.70	%		2.92	%
Noninterest expense/average assets		2.33	%		2.13	%		2.41	%		2.13	%
Efficiency Ratio		70.24	%		62.60	%		75.43	%		63.05	%
Non performing assets to total assets		1.89	%		1.40	%		1.89	%		1.40	%
Non performing loans to total net loans including loans held for sale		1.97	%		1.52	%		1.97	%		1.52	%
Allowance for loan losses to total loans		0.85	%		0.78	%		0.85	%		0.78	%

Ratios are based upon the mathematical average of the balances at the end of each month for the quarter and were annualized where appropriate

Camco Financial Corporation
Averages for Quarters Ended
September, June and March 2006
(In thousands, except for per share data and shares outstanding)

								Average Table - Quarter Ended
			Sept 30, 2006							Jun 30, 2006							Mar 31, 2006
	Average				Yield/			Average				Yield/			Average				Yield/
	Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate
Interest — Earning Assets:
Loans held for sale		2,278							2,502							2,550
Loans receivable — net		841,094		13,860		6.57	%		844,175		13,491		6.37	%		843,007		13,249		6.27	%
Mortgage-backed securities		57,311		602		4.20	%		59,196		608		4.11	%		62,981		633		4.02	%
Investment securities		56,634		590		4.17	%		53,131		539		4.06	%		48,795		480		3.93	%
Interest-bearing deposits and other		64,387		848		5.27	%		64,911		825		5.08	%		60,304		790		5.24	%
Total interest earning assets		1,021,704		15,900		6.22	%		1,023,915		15,463		6.04	%		1,017,637		15,152		5.96	%
Noninterest-earning assets		44,046							44,369							46,471
Total Assets		1,065,750							1,068,284							1,064,108
Interest-Bearing Liabilities:
Deposits		656,621		5,744		3.50	%		650,664		5,108		3.14	%		630,346		4,424		2.81	%
Advances		277,325		2,904		4.19	%		287,924		2,900		4.03	%		300,930		2,949		3.92	%
Total interest-bearing liabilities		933,946		8,648		3.70	%		938,588		8,008		3.41	%		931,276		7,373		3.17	%
Noninterest-bearing sources:
Noninterest-bearing liabilities		41,293							39,190							41,834
Shareholders’ equity		90,511							90,506							90,998
Total Liabilities and Shareholders’ Equity		1,065,750							1,068,284							1,064,108
Net Interest Income & Margin				7,252		2.84	%				7,455		2.91	%				7,779		3.06	%