EXHIBIT 99
CAMCO FINANCIAL ANNOUNCES THIRD QUARTER 2003 EARNINGS
Friday October 24, 4:59 pm ET
CAMBRIDGE, Ohio--(BUSINESS WIRE)--Oct. 24, 2003--(Nasdaq:CAFI - News) - Camco
Financial Corporation reported net earnings for the nine months ended September
30, 2003 of $6.27 million versus $7.38 million for the comparable period in
2002. Basic earnings per share for 2003 were $.83 versus $.93 for 2002.
For the quarter ended September 30, 2003, Camco reported net earnings of $1.59
million versus $2.53 million of net earnings reported for the same quarter in
2002. Basic earnings per share for the third quarter of 2003 were $.21 compared
to $.32 for the same quarter in 2002.
Camco's President & CEO Richard C. Baylor commented; "We look upon the third
quarter as one of transition due to a dramatic increase in long-term interest
rates since early June, following the low interest rate environment that we have
been experiencing for the last two years. In the 3rd quarter we recorded a
sizable increase in amortization of our mortgage servicing rights that was only
partially offset by the valuation of new servicing rights created by loans we
sold in this quarter. This increase in amortization was attributable primarily
to high prepayment speeds on the existing portfolio of loans serviced. After
several quarters of contraction in our owned loan portfolio due to heavy
refinancing activity, we are beginning to see loan growth, due to a shift from
selling long-term, fixed-rate home loans into the secondary market to producing
rate sensitive loans for our portfolio. We are very pleased with the 20.1%
annualized growth rate in our loan portfolio in the third quarter. We are now
experiencing consistent loan volume from our commercial real estate division,
with year-to-date production in 2003 versus 2002 up 62%. Consumer lending is
also providing strong consistent volumes. Notably, we are seeing improvement in
the level of our non-performing loans, now at $12.3 million as of September 30th
versus $13.7 million as of June 30, 2003. "
Mr. Baylor continued, "Our net interest margin has fallen dramatically since the
second quarter of 2002 from 2.86% to 2.26% in the third quarter 2003. We
anticipate improvement in our net interest margin due to our asset sensitive
interest rate risk position in a rising interest rate environment. The margin
deterioration was partly due to our holding of long-term fixed-rate FHLB
borrowings at higher rates. We are maintaining our focus on executing our
Strategic Plan to deliver financial products that will solidify customer banking
relationships while providing higher margins and fee income."
Baylor also noted, "In our effort to effectively manage our capital levels we
continue to coordinate a strong dividend pay-out ratio in conjunction with our
Stock Repurchase Plan. Camco recently announced a 3.57% increase in the
quarterly dividend to $.145 per share representing an annualized yield of 3.41%
based on Camco's quarter-end market value. We purchased 128,000 shares in the
third quarter with approximately 290,000 shares remaining to be purchased under
our current Stock Repurchase Plan."
Baylor added, "We remain committed to seeking opportunities to add profitability
and build shareholder value. A recent example of our continuing effort to manage
costs and re-direct resources was our decision to close our Russell, Ky. banking
center in September 2003."
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, internet
banking and title services from 32 offices in 23 communities in Ohio, Kentucky
and West Virginia.
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 September 30, 2003 and 2002
(In thousands, except for per share data and shares outstanding)
9 Months 9 Months 3 Months 3 Months
Ended Ended Ended Ended
9/30/03 9/30/02 9/30/03 09/30/02
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------------------------------------------
Total Interest Income $41,953 $50,389 $13,342 $16,461
Total Interest Expense 23,955 29,519 7,655 9,528
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Net Interest Income 17,998 20,870 5,687 6,933
Provision for Losses
on Loans 930 752 255 338
------------------------------------------------
Net Interest Income
After Provision for
Loan Losses 17,068 20,118 5,432 6,595
Other Income 9,226 7,041 2,423 2,684
General, Administrative,
and Other Expense 17,190 16,271 5,551 5,559
------------------------------------------------
Net Income - Before
Income Tax 9,104 10,888 2,304 3,720
------------------------------------------------
Income Tax Expense 2,836 3,513 718 1,190
------------------------------------------------
Net Earnings $6,268 $7,375 $1,586 $2,530
================================================
Earnings Per Share Reported:
Basic $0.83 $0.93 $0.21 $0.32
Diluted $0.82 $0.92 $0.21 $0.32
Basic Weighted Number
of Shares Outstanding 7,537,944 7,947,311 7,417,459 7,897,051
Diluted Weighted Number
of Shares Outstanding 7,667,989 8,054,820 7,500,180 8,008,495
Selected Financial Ratios
Net Interest Margin 2.36% 2.69% 2.26% 2.66%
Reported:
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Return on Average Equity 8.60% 10.12% 6.50% 10.29%
Return on Average Assets 0.78% 0.91% 0.59% 0.93%
Camco Financial Corporation
Condensed Consolidated Statements of Financial Condition
(In thousands, except for per share data and shares outstanding)
9/30/03 12/31/02 9/30/02
------------------------------------
Assets
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Cash and Cash Equivalents $45,090 $57,022 $41,183
Investments 132,069 161,489 186,175
Loans Held for Sale 7,934 55,493 24,984
Loans Receivable 798,193 746,955 781,474
Allowance for Loan Loss (5,329) (5,490) (4,933)
------------------------------------
Loans Receivable, Net 792,864 741,465 776,541
Goodwill 2,953 2,953 2,953
Other Assets 63,796 64,818 65,002
------------------------------------
Total Assets $1,044,706 $1,083,240 $1,096,838
====================================
Liabilities
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Deposits $661,520 $694,072 $703,218
Borrowed Funds 277,794 276,276 282,122
Other Liabilities 11,643 14,291 13,351
------------------------------------
Total Liabilities 950,957 984,639 998,691
Stockholders Equity 93,749 98,601 98,147
------------------------------------
Total Liabilities and
Stockholders' Equity $1,044,706 $1,083,240 $1,096,838
====================================
Stockholders' Equity to
Total Assets 8.97% 9.10% 8.95%
Total Shares Outstanding 7,377,736 7,688,885 7,800,875
Book Value Per Share $12.71 $12.82 $12.58
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Contact:
Camco Financial Corporation, Cambridge
Richard C. Baylor, CEO, 740-435-2040
Mark A. Severson, CFO, 740-435-2055
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