EXHIBIT 99
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CONTACT: RICHARD C. BAYLOR
PHONE: 740-435-2040
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NEWS RELEASE
RELEASE DATE: JULY 29, 2003
RELEASE TIME: 4:30 P.M.
CAMCO FINANCIAL ANNOUNCES SECOND QUARTER 2003 EARNINGS
CAMBRIDGE, OHIO (NASDAQ: CAFI) - Camco Financial Corporation reported net
earnings for the six months ended June 30, 2003 of $4.7 million, representing a
$163,000 or 3.4% decrease from the $4.8 million for the comparable period in
2002. Basic earnings per share for 2003 were $.62 versus $.61 for 2002, a 1.64%
increase.
For the quarter ended June 30, 2003, Camco reported net earnings of $2.2
million, representing a $242,000 or 9.8% decrease from the $2.5 million of net
earnings reported for the same quarter in 2002. Basic earnings per share for the
second quarter of 2003 were $.30 compared to $.31 for the same quarter in 2002,
a 3.2% decrease. Camco recently paid a quarterly dividend of $.14 per share on
July 18, 2003, representing an annualized yield of 3.61% based on Camco's
quarter end market value.
President & CEO Richard C. Baylor commented, "The historically low interest rate
environment and the weak economy have put pressure on our ability to grow the
loan portfolio and net interest margin. On a year to date basis, the net
interest margin in 2003 has decreased to 2.41% from 2.72% in 2002. Mortgage loan
volume continues to be strong with 2003 volumes up 71% compared to 2002. While
this record volume generates fee income, refinancing of home mortgages into long
term fixed rate loans that are sold to avoid interest rate risk exposure,
continues to impede growth of our loan portfolio. We are satisfied with our
non-
NASDAQ: CAFI - EMAIL: camco.cc - www.camcofinancial.com
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interest income of $6.8 million in 2003 vs. $4.4 million in 2002; which can be
attributed to our strong mortgage production as well as increased fees from our
title insurance business."
Mr. Baylor continued, "Non-performing assets have remained stable from 2002
year-end levels and were $15.2 million or 1.42% of assets at June 30, 2003 vs.
$15.2 million or 1.40% of assets at December 31, 2002. At the same time, we
believe our total loan loss reserves are adequate based on historical experience
and relative to the volume and type of lending conducted by the Bank."
Baylor's remarks continued; "As part of our continued capital management effort,
our Stock Repurchase Program of 386,000 shares approved on October 25, 2002 has
47,000 shares left to purchase. We will then begin the next Stock Repurchase
Program of approximately 371,000 shares approved on May 27, 2003. Also, we are
very pleased with the successful launch of our "Advantage Bank Online" banking
product that provides online bill paying and other internet banking services for
our retail customers."
Camco Financial Corporation, holding company for Advantage Bank, is a
multi-state thrift holding company headquartered in Cambridge, Ohio. Advantage
Bank and its affiliates offer community banking, mortgage banking and title
services from 33 offices in 23 communities in Ohio, Kentucky and West Virginia.
NASDAQ: CAFI - EMAIL: camco.cc - www.camcofinancial.com
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Additional information about Camco Financial may be found on Camco's web site:
www.camcofinancial.com.
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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 EARNINGS
PERIODS ENDED JUNE 30, 2003 AND 2002
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA AND SHARES OUTSTANDING)
6 MONTHS 6 MONTHS 3 MONTHS 3 MONTHS
ENDED ENDED ENDED ENDED
6/30/03 6/30/02 6/30/03 06/30/02
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ----------- ----------- -----------
TOTAL INTEREST INCOME $ 28,611 $ 33,928 $ 13,918 $ 17,049
TOTAL INTEREST EXPENSE 16,300 19,991 7,973 9,725
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NET INTEREST INCOME 12,311 13,937 5,945 7,324
PROVISION FOR LOSSES ON LOANS 675 414 255 207
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NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 11,636 13,523 5,690 7,117
OTHER INCOME 6,803 4,357 3,348 2,104
GENERAL, ADMINISTRATIVE,
AND OTHER EXPENSE 11,639 10,712 5,860 5,573
---------- ---------- ---------- ----------
NET INCOME - BEFORE INCOME TAX 6,800 7,168 3,178 3,648
---------- ---------- ---------- ----------
INCOME TAX EXPENSE 2,118 2,323 950 1,178
---------- ---------- ---------- ----------
NET EARNINGS $ 4,682 $ 4,845 $ 2,228 $ 2,470
========== ========== ========== ==========
EARNINGS PER SHARE REPORTED:
BASIC $ 0.62 $ 0.61 $ 0.30 $ 0.31
DILUTED $ 0.61 $ 0.60 $ 0.29 $ 0.31
BASIC WEIGHTED NUMBER OF
SHARES OUTSTANDING 7,599,184 7,972,857 7,524,762 7,978,880
DILUTED WEIGHTED NUMBER OF
SHARES OUTSTANDING 7,684,116 8,094,138 7,609,536 8,113,180
SELECTED FINANCIAL RATIOS
NET INTEREST MARGIN 2.41% 2.72% 2.34% 2.86%
REPORTED:
RETURN ON AVERAGE EQUITY 9.56% 10.03% 9.19% 10.16%
RETURN ON AVERAGE ASSETS 0.87% 0.91% 0.83% 0.92%
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CAMCO FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA AND SHARES OUTSTANDING)
(UNAUDITED) (UNAUDITED)
6/30/03 12/31/02 6/30/02
----------- ----------- -----------
ASSETS
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CASH AND CASH EQUIVALENTS $ 55,888 $ 57,022 $ 60,574
INVESTMENTS 183,633 161,489 152,274
LOANS HELD FOR SALE 14,385 55,493 32,737
LOANS RECEIVABLE 753,059 746,955 771,226
ALLOWANCE FOR LOAN LOSS (5,769) (5,490) (4,613)
----------- ----------- -----------
LOANS RECEIVABLE, NET 747,290 741,465 766,613
GOODWILL 2,953 2,953 2,953
OTHER ASSETS 63,182 64,818 64,022
----------- ----------- -----------
TOTAL ASSETS $ 1,067,331 $ 1,083,240 $ 1,079,173
=========== =========== ===========
LIABILITIES
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DEPOSITS $ 685,183 $ 694,072 $ 703,345
BORROWED FUNDS 273,800 276,276 265,600
OTHER LIABILITIES 11,834 14,291 12,051
----------- ----------- -----------
TOTAL LIABILITIES 970,817 984,639 980,996
STOCKHOLDERS EQUITY 96,514 98,601 98,177
----------- ----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,067,331 $ 1,083,240 $ 1,079,173
=========== =========== ===========
STOCKHOLDERS' EQUITY TO
TOTAL ASSETS 9.04% 9.10% 9.10%
TOTAL SHARES OUTSTANDING 7,475,224 7,688,885 7,953,838
BOOK VALUE PER SHARE $ 12.91 $ 12.82 $ 12.34
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