Exhibit 99
Camco Financial Announces Fourth Quarter and 2008 Year-End Results
CAMBRIDGE, Ohio, Feb. 6, 2009 (GLOBE NEWSWIRE) -- Camco Financial Corporation (Nasdaq:CAFI), the financial holding company for Advantage Bank, reported today a net loss of $13.5 million or $1.89 per share for the quarter ended December 31, 2008, compared to net earnings of $807,000 or $0.11 per share, for the fourth quarter of 2007. Net loss for the full year 2008 totaled $13.1 million, or $1.83 per share, compared to net earnings of $4.5 million, or $0.61 per share in 2007. Assets totaled $1.0 billion at December 31, 2008.
The quarter and full year results were primarily affected by a noncash goodwill impairment charge and increases to the bank's provision for loan loss reserves. President and Chief Executive Officer James E. Huston commented, "Like many financial institutions in our region, the current economic conditions have continued to deteriorate in our markets and have significantly stressed our existing loan portfolios, resulting in our taking an additional loan loss provision of $10.8 million in the fourth quarter. The additional loan loss provision is the result of unemployment levels and declining economic conditions in recent months which have led to decreasing credit quality of our loan portfolio. The continued decline of the financial sector has negatively impacted our stock price, resulting in an evaluation of goodwill and recognition of a $6.7 million impairment charge in the fourth quarter of 2008. The goodwill charge does not affect the corporation's liquidity position nor regulatory capital calculations."
Review of Financial Performance
Net Interest Margin: During the fourth quarter of 2008, the net interest margin decreased 14 basis points to 2.68% from 2.82% in the third quarter of 2008, and for the year decreased 19 basis points from 2.97% to 2.78% at December 31, 2008. Non-performing loans and a decrease in returns on our investment portfolio in the current declining rate environment have contributed to our tightened margin during the fourth quarter and 2008 year. Interest earning assets decreased by $14.5 million from third quarter 2008 totals and $26.9 million from December 31, 2007. The decrease in interest earning assets is related to increased non-performing loans coupled with a decrease in loans receivable caused by lower loan production, which is reflective of tightening credit and underwriting standards coupled with the impaired housing market as new and existing home sales declined to decade lows.
Noninterest Income: For the quarter ended December 31, 2008, total noninterest income decreased $521,000 or 28.9% to $1.3 million compared to $1.8 million in the third quarter primarily due to a $392,000 decrease in the value of the company's mortgage servicing rights resulting from fewer loan sales and continued pay downs on the portfolio.
Noninterest Expense: For the quarter ended December 31, 2008, noninterest expense totaled $13.9 million, an increase of $7.3 million from the third quarter of 2008, primarily due to the impairment charge for goodwill of $6.7 million. Absent the nonrecurring goodwill charge, noninterest expense was $7.2 million, an increase of $634,000 or 9.6% and $471,000 or 7.0% from the quarters ended September 30, 2008 and December 31, 2007, respectively. Real estate owned writedowns, employee costs related to the departure of the former Chief Executive Officer and consulting activities also contributed to the fourth quarter noninterest expense increase.
Asset Quality: Net charge-offs totaled $2.7 million for the fourth quarter 2008 compared to $610,000 for the fourth quarter 2007. Loans secured by 1-4 family properties, multi-family, and land and development contributed to the total. Net chargeoffs totaled $5.7 million for the full year 2008 (including recoveries of $899,000) compared to $2.0 million for all of 2007. During 2008, loans secured by 1-4 family properties, consumer, and commercial comprised 44.6%, 7.2% and 48.2% of the total year charge offs, respectively.
Nonperforming loans increased to $51.1 million and other real estate owned increased to $6.5 million at December 31, 2008 from $24.0 million and $5.0 million at December 31, 2007. Loans secured by 1-4 family properties, consumer, and commercial comprised 34%, 10%, and 56% of nonperforming loans at December 31, 2008, respectively. Loans made with the purpose of non-owner occupied investments and commercial totaled $40.9 million or 81% of non performing loans. Land development loans totaled $15.1 million at December 31, 2008, with $6.5 million of the portfolio classified as nonperforming. Other real estate owned consisted primarily of non-owner occupied investments and commercial real estate, which was $4.0 million or 62% of the other real estate owned. The remaining $2.5 million or 38% of other real estate owned were owner occupied properties.
President and Chief Executive Officer Huston stated, "Our management team continues to be hard at work to proactively identify our existing credit risk exposure throughout all our loan portfolios. The building of the reserve is the appropriate action in the current declining economy. The bank remains well capitalized in relation to all regulatory requirements and while we are not happy with the current financial results, our team remains focused on providing value to our shareholders."
About Camco Financial Corporation:
Camco Financial Corporation, Holding Company of Advantage Bank, is a multi-state financial services Holding Company headquartered in Cambridge, Ohio. Advantage Bank and its affiliate, Camco Title Agency, offer relationship banking that includes commercial, small business and consumer financial services, internet banking and title insurance services from 28 offices in Ohio, Kentucky and West Virginia. Additional information about Camco Financial Corporation may be found on the Company's web sites: http://www.camcofinancial.com and http://www.advantagebank.com.
The Camco Financial Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4639
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.
Camco Financial Corporation Condensed Consolidated Statements of Financial Condition (In thousands, except for per share data and shares outstanding) (Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited) 12/31/08 9/30/08 6/30/08 3/31/08 12/31/07 ---------- ---------- ---------- ---------- ---------- Assets ------ Cash and Cash Equivalents 52,951 44,207 46,113 45,953 23,004 Investments 98,758 100,353 95,312 94,721 91,688 Loans Held for Sale 2,185 2,828 387 1,429 3,169 Loans Receivable 772,388 789,113 798,760 803,158 818,725 Allowance for Loan Loss (15,541) (7,465) (8,174) (7,853) (6,623) ---------- ---------- ---------- ---------- ---------- Loans Receivable, Net 756,847 781,648 790,586 795,305 812,102 Goodwill -- 6,683 6,683 6,683 6,683 Other Assets 92,620 90,266 88,403 88,126 86,615 ---------- ---------- ---------- ---------- ---------- Total Assets $1,003,361 $1,025,985 $1,027,484 $1,032,217 $1,023,261 ========== ========== ========== ========== ========== Liabilities ----------- Deposits 723,956 730,590 731,059 730,780 692,184 Borrowed Funds 183,833 189,866 193,358 194,660 220,981 Other Liabilities 21,622 18,950 17,182 20,314 21,462 ---------- ---------- ---------- ---------- ---------- Total Liabilities 929,411 939,406 941,599 945,754 934,627 Stockholders' Equity 73,950 86,579 85,885 86,463 88,634 ---------- ---------- ---------- ---------- ---------- Total Liabilities and Stockholders' Equity $1,003,361 $1,025,985 $1,027,484 $1,032,217 $1,023,261 ========== ========== ========== ========== ========== Stockholders' Equity to Total Assets 7.37% 8.44% 8.36% 8.38% 8.66% Total Shares Outstanding 7,155,595 7,155,595 7,155,595 7,155,595 7,155,595 Book Value Per Share $10.33 $12.10 $12.00 $12.08 $12.39 Camco Financial Corporation Condensed Consolidated Statements of Operations Year to Date Information (In thousands, except for per share data and shares outstanding) 12 Months 12 Months Ended Ended 12/31/08 12/31/07 (Unaudited) (Unaudited) ---------- ---------- Interest Income: Loans 50,487 57,955 Mortgage-backed securities 2,740 2,247 Investment securities 1,629 2,348 Interest-bearing deposits and other 1,968 2,327 ---------- ---------- Total Interest Income 56,824 64,877 ---------- ---------- Interest Expense: Deposits 22,728 25,429 Borrowings 8,246 10,992 ---------- ---------- Total Interest Expense 30,974 36,421 ---------- ---------- Net Interest Income 25,850 28,456 Provision for Losses on Loans 14,586 1,495 ---------- ---------- Net Interest Income After Provision for Loan Losses 11,264 26,961 ---------- ---------- Noninterest Income: Rent and other 1,271 1,563 Loan servicing fees 1,308 1,375 Service charges and other fees on deposits 2,387 2,441 Gain on sale of loans 364 353 Mortgage servicing rights (114) (68) Gain (loss) on sale of investment, mbs & fixed assets 3 (24) Income on cash surrender value life insurance 1,000 948 ---------- ---------- Total noninterest income 6,219 6,588 ---------- ---------- Noninterest expense: Employee compensation and benefits 13,279 13,216 Occupancy and equipment 3,374 3,464 Data processing 1,152 1,186 Advertising 938 1,299 Franchise taxes 1,202 1,104 Other operating 7,258 7,014 Merger / Acquisition 628 -- Goodwill Impairment 6,683 -- ---------- ---------- Total noninterest expense 34,514 27,283 ---------- ---------- Earnings before provision for income taxes (17,031) 6,266 Provision for income taxes (3,957) 1,765 ---------- ---------- Net Earnings (loss) (13,074) 4,501 ========== ========== Earnings (Loss) Per Share Reported: Basic ($1.83) $0.61 Diluted ($1.83) $0.61 Basic Weighted Number of Shares Outstanding 7,155,595 7,326,907 Diluted Weighted Number of Shares Outstanding 7,155,595 7,328,494 Camco Financial Corporation Condensed Consolidated Statements of Operations 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 12/31/08 9/30/08 6/30/08 3/31/08 12/31/07 (Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited) --------- --------- --------- --------- --------- Interest Income: Loans 11,793 12,503 12,667 13,524 14,358 Mortgage- backed securities 702 703 701 634 600 Investment securities 428 391 368 442 514 Interest- bearing deposits and other 395 510 579 484 575 ------------------------------------------------------ Total Interest Income 13,318 14,107 14,315 15,084 16,047 ------------------------------------------------------ Interest Expense: Deposits 5,188 5,419 5,720 6,401 6,558 Borrowings 1,892 2,022 2,129 2,203 2,531 ------------------------------------------------------ Total Interest Expense 7,080 7,441 7,849 8,604 9,089 ------------------------------------------------------ Net Interest Income 6,238 6,666 6,466 6,480 6,958 Provision for Losses on Loans 10,824 590 850 2,322 980 ------------------------------------------------------ Net Interest Income After Provision for Loan Losses (4,586) 6,076 5,616 4,158 5,978 ------------------------------------------------------ Noninterest Income: Rent and other 282 310 327 352 379 Loan servicing fees 325 332 321 330 345 Service charges and other fees on deposits 590 618 598 581 634 Gain on sale of loans 61 127 57 119 89 Mortgage servicing rights (229) 163 261 (309) 134 Gain (loss) on sale of investment, mbs & fixed assets -- -- -- 3 1 Income on cash surrender value life insurance 254 254 249 243 240 ------------------------------------------------------ Total non- interest income 1,283 1,804 1,813 1,319 1,822 ------------------------------------------------------ Noninterest expense: Employee compensation and benefits 3,289 3,151 3,271 3,568 3,186 Occupancy and equipment 828 827 826 893 829 Data processing 332 293 299 228 299 Advertising 219 229 294 196 280 Franchise taxes 297 285 273 347 273 Merger / Acquisition 171 196 261 -- -- Other operating 2,084 1,605 1,662 1,907 1,882 Goodwill Impairment 6,683 -- -- -- -- ------------------------------------------------------ Total non- interest expense 13,903 6,586 6,886 7,139 6,749 ------------------------------------------------------ Earnings before provision for income taxes (17,206) 1,294 543 (1,662) 1,051 Provision for income taxes (3,693) 225 170 (659) 244 ------------------------------------------------------ Reported Net Income (13,513) 1,069 373 (1,003) 807 ------------------------------------------------------ Net Earnings (loss) (13,513) 1,069 373 (1,003) 807 ====================================================== Earnings (Loss) Per Share Reported: Basic ($1.89) $0.15 $0.05 ($0.14) $0.11 Diluted ($1.89) $0.15 $0.05 ($0.14) $0.11 Basic Weighted Number of Shares Outstanding 7,155,595 7,155,595 7,155,595 7,155,595 7,183,709 Diluted Weighted Number of Shares Outstanding 7,155,595 7,162,566 7,164,018 7,155,595 7,184,277 Camco Financial Corporation Selected Ratios and Statistics Periods Ended December 31, 2008 and 2007 (In thousands, except for per share data and shares outstanding) 3 Months 12 Months 3 Months 12 Months Ended Ended Ended Ended 12/31/08 12/31/08 12/31/07 12/31/07 (Unaudited)(Unaudited)(Unaudited)(Unaudited) ---------- ---------- ---------- ---------- Return on average equity -65.10% -15.26% 3.63% 4.98% Return on average assets -5.32% -1.28% 0.31% 0.43% Interest rate spread 2.49% 2.59% 2.72% 2.74% Net interest margin 2.68% 2.78% 2.96% 2.97% Yield on earning assets 5.72% 6.11% 6.82% 6.78% Cost of deposits 3.01% 3.31% 3.99% 3.90% Cost of borrowings 4.04% 4.24% 4.41% 4.40% Total cost of interest bearing liabilities 3.23% 3.52% 4.10% 4.04% Noninterest expense to average assets 5.47% 3.02% 2.60% 4.65% Efficiency ratio 184.86% 107.62% 76.87% 77.85% Nonperforming assets to total assets 5.84% 5.84% 2.84% 2.84% Non performing loans to total net loans including loans held for sale 6.87% 6.87% 2.94% 2.94% Allowance for loan losses to total loans 2.05% 2.05% 0.82% 0.82% 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 December, September and June 2008 (In thousands, except for per share data and shares outstanding) -------------------------------- December 31, 2008 -------------------------------- Average Yield/ Balance Interest Rate -------------------------------- Interest - Earning Assets: Loans held for sale 1,709 Loans receivable - net (1) 743,052 11,793 6.33% Securities (2) 102,918 1,130 4.39% FHLB Stock 29,888 370 4.95% Other interest bearing accounts 52,974 25 0.19% -------------------------------- Total interest earning assets 930,541 13,318 5.72% -------------------------------- Noninterest-earning assets 86,376 ---------- Total Assets 1,016,917 ========== Interest-Bearing Liabilities: Deposits 688,361 5,188 3.01% Advances & Borrowings 187,412 1,892 4.04% -------------------------------- Total interest-bearing liabilities 875,773 7,080 3.23% -------------------------------- Noninterest-bearing sources: Noninterest-bearing liabilities 58,109 Shareholders' equity 83,035 ---------- Total Liabilities and Shareholders' Equity 1,016,917 ========== ---------- Net Interest margin 2.68% ========== --------------------- Net Interest Income & Spread 6,238 2.49% ===================== -------------------------------- September 30, 2008 -------------------------------- Average Yield/ Balance Interest Rate -------------------------------- Interest - Earning Assets: Loans held for sale 1,606 Loans receivable - net (1) 767,800 12,503 6.50% Securities (2) 98,880 1,094 4.43% FHLB Stock 29,590 398 5.38% Other interest bearing accounts 47,129 112 0.95% -------------------------------- Total interest earning assets 945,005 14,107 5.97% -------------------------------- Noninterest-earning assets 82,359 ---------- Total Assets 1,027,364 ========== Interest-Bearing Liabilities: Deposits 694,240 5,419 3.12% Advances & Borrowings 191,592 2,022 4.22% -------------------------------- Total interest-bearing liabilities 885,832 7,441 3.36% -------------------------------- Noninterest-bearing sources: Noninterest-bearing liabilities 55,662 Shareholders' equity 85,870 ---------- Total Liabilities and Shareholders' Equity 1,027,364 ========== ---------- Net Interest margin 2.82% ========== --------------------- Net Interest Income & Spread 6,666 2.61% ===================== -------------------------------- June 30, 2008 -------------------------------- Average Yield/ Balance Interest Rate -------------------------------- Interest - Earning Assets: Loans held for sale 846 Loans receivable - net (1) 769,116 12,667 6.58% Securities (2) 96,578 1,069 4.43% FHLB Stock 29,195 393 5.38% Other interest bearing accounts 29,065 186 2.56% -------------------------------- Total interest earning assets 924,800 14,315 6.19% -------------------------------- Noninterest-earning assets 107,134 ---------- Total Assets 1,031,934 ========== Interest-Bearing Liabilities: Deposits 693,014 5,720 3.30% Advances & Borrowings 193,929 2,129 4.39% -------------------------------- Total interest-bearing liabilities 886,943 7,849 3.54% -------------------------------- Noninterest-bearing sources: Noninterest-bearing liabilities 58,573 Shareholders' equity 86,418 ---------- Total Liabilities and Shareholders' Equity 1,031,934 ========== ---------- Net Interest margin 2.80% ========== --------------------- Net Interest Income & Spread 6,466 2.65% ===================== (1) Does not include ALLL and Non-Accrual Loans (2) Includes securities designated as available for sale
CONTACT: Camco Financial Corporation James E. Huston, CEO 740-435-2027