[LOGO] CAMCO FINANCIAL CORPORATION
6901 Glenn Highway
Cambridge, OH 43725-9757
Phone: 740-435-2020
Fax: 740-432-2743 [Private Fax]
EXHIBIT 99
CONTACTS:
RICHARD C. BAYLOR, CEO
PHONE: 740-435-2040
OR
MARK A. SEVERSON, CFO
[ ] PHONE: 740-435-2055
NEWS RELEASE
RELEASE DATE: JULY 22, 2005
RELEASE TIME: 4:00 P.M.
CAMCO FINANCIAL ANNOUNCES STRONG SECOND QUARTER 2005
EARNINGS GROWTH
CAMBRIDGE, OHIO (NASDAQ: CAFI) - Camco Financial Corporation (Camco) reported
net earnings for the quarter ended June 30, 2005 of $2.04 million or $.27 per
share as compared with net earnings of $1.53 million or $.21 per share for the
same quarter in 2004, an increase of 29%.
For the 6 months ended June 30, 2005 Camco reported net earnings of $4.26
million compared to $2.57 million of net earnings reported for the same 6 month
period in 2004. Basic earnings per share for the 6 months ended June 30, 2005
were $.56 compared to $.35 for the same 6 month period in 2004, an increase of
60%.
NASDAQ: CAFI - EMAIL: camco@camco.cc - www.camcofinancial.com
Camco recently announced a quarterly dividend of $.145 which was payable
July 15, 2005. This dividend represents an annualized yield of 4.26% on Camco's
June 30th quarter-end market value.
President & CEO Richard C. Baylor commented, "We continue to see
significant progress from our efforts to restructure the composition of our
balance sheet to be more commercial bank-like. At the end of the second quarter
commercial and consumer loans represented 44% of our loan portfolio, versus 36%
one year ago. We are encouraged to see our annualized return on average equity
for the six months ended June 30, 2005 at 9.45% which is in excess of the
average of all publicly traded Ohio banks."
Mr. Baylor continued, "For the six months ended June 30, 2005 our net
interest margin increased to 2.95% from 2.47% compared to the six months ended
June 30, 2004. The average yield on our earning assets continues to increase as
we execute our strategic plan to shift the composition of our loan portfolio.
Overall, the yield on our interest earning assets has increased 30 basis points
from last year's second quarter, and the cost of interest bearing liabilities
has decreased 22 basis points. We continue to focus on including higher margin
producing and interest rate sensitive commercial and consumer loans. And as
opportunities present themselves, we are recruiting seasoned lenders in the
markets we serve to further our portfolio goals."
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5
REVIEW OF SIGNIFICANT AREAS:
NET INTEREST MARGIN: During the second quarter of 2005, as short-term interest
rates continued rising, the net interest margin improved to 2.97% in the second
quarter 2005 from 2.93% in the first quarter of 2005. This improvement was made
possible through Camco's emphasis on growing the commercial, commercial real
estate and consumer loan portfolios and the ability to effectively manage
overall cost of funds.
NON-INTEREST INCOME: For the 6 months ended June 30, 2005 total non-interest
income increased 3.1% to $3.34 million from $3.24 million for the same period
last year. Core non-interest income, which is net of gain on sale of assets and
mortgage servicing rights, increased 12.5% to $2.93 million from $2.60 million.
Of this increase, $150,000 was due to "Extended Overdraft" fee income, which did
not exist in the second quarter of 2004. For the six months ended June 30, 2005,
$33.2 million of loans were sold with a total gain of $349,000 as compared to
$57.7 million sold in the second quarter of 2004 for a gain of $490,000.
Although less volume overall was originated and sold, the profit margin
increased on the sales from .85% to 1.05%. The amount of loans sold in the first
six months of 2005 was 57.5% of the prior year's production due to rising
interest rates, and a higher percentage of adjustable rate loans being
originated and retained in the bank's portfolio.
Mortgage servicing rights had a positive impact in the six months ended June 30,
2005 of $9,000 versus the six months ended June 30, 2004, which had a negative
adjustment of $73,000. Even though loan sales were down 42.5% to $33.2 million
NASDAQ: CAFI - EMAIL: camco@camco.cc - www.camcofinancial.com
6
versus $57.7 million, the prepayment on the portfolio slowed. The overall value
of mortgage servicing rights increased to 1.26% from 1.15% as a percent of loans
serviced, primarily due to a lower risk of prepayment resulting from increasing
interest rates.
OPERATING EXPENSES: For the six months ended June 30, 2005, operating expenses
were $11.38 million compared to $11.36 million for the comparable period in
2004, or an increase of .1%. As a percentage of average assets, operating
expenses decreased slightly to 2.14% from 2.17%.
ASSET QUALITY: Non-performing loans as a percentage of loans decreased 20% from
1.39% at March 31, 2005 to 1.11% at June 30, 2005. The allowance for loan losses
as a percentage of loans decreased slightly from 79 basis points at March 31,
2005 to 78 basis points at June 30, 2005. At June 30, 2005, total non-performing
loans were $9.4 million, of which approximately 52% were single family
residential loans.
STRATEGIC VISION: Camco continues to execute and manage its long-term strategic
plan. This plan 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 the strategy is
the future growth of the balance sheet and the corresponding increase in net
interest income. Complimentary revenue sources to enhance the 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,
with our newest banking center in Vienna, West Va., opening in July 2005,
representing that effort.
NASDAQ: CAFI - EMAIL: camco@camco.cc - www.camcofinancial.com
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Camco Financial Corporation, holding company for Advantage Bank, is a
multi-state financial holding company headquartered in Cambridge, Ohio with
assets of $1.07 billion. Advantage Bank and its affiliates offer community
banking, mortgage banking, internet banking and title services from 31 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.
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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) AUDITED (UNAUDITED) (UNAUDITED)
6/30/05 3/31/05 12/31/04 9/30/04 6/30/04
----------- ----------- ---------- ----------- -----------
ASSETS
Cash and Cash Equivalents 36,778 39,795 $ 42,894 $ 45,291 $ 38,192
Investments 113,517 109,179 108,429 117,370 124,694
Loans Held for Sale 3,441 4,616 2,837 4,386 4,805
Loans Receivable 847,731 843,777 840,305 898,355 838,699
Allowance for Loan Loss (6,540) (6,637) (6,476) (6,398) (5,528)
----------- ----------- ---------- ----------- -----------
Loans Receivable, Net 841,191 837,140 833,829 891,957 833,171
Goodwill 6,683 6,683 6,736 7,023 2,953
Other Assets 67,747 67,221 71,098 68,078 64,902
----------- ----------- ---------- ----------- -----------
TOTAL ASSETS $ 1,069,357 $ 1,064,634 $1,065,823 $ 1,134,105 $ 1,068,717
=========== =========== ========== =========== ===========
LIABILITIES
Deposits 669,283 674,853 $ 667,778 $ 728,918 $ 677,567
Borrowed Funds 298,295 289,302 295,310 291,719 289,712
Other Liabilities 11,123 10,900 13,414 16,441 9,715
----------- ----------- ---------- ----------- -----------
TOTAL LIABILITIES 978,701 975,055 976,502 1,037,078 976,994
STOCKHOLDERS EQUITY 90,656 89,579 89,321 97,027 91,723
----------- ----------- ---------- ----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,069,357 $ 1,064,634 $1,065,823 $ 1,134,105 $ 1,068,717
=========== =========== ========== =========== ===========
STOCKHOLDERS' EQUITY TO 8.48% 8.41% 8.38% 8.56% 8.58%
TOTAL ASSETS
TOTAL SHARES OUTSTANDING 7,643,746 7,678,747 7,663,153 7,640,505 7,358,888
BOOK VALUE PER SHARE $ 11.86 $ 11.67 $ 11.66 $ 12.70 $ 12.46
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
6/30/05 3/31/05 12/31/04 9/30/04 6/30/04
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ----------- ----------- ----------- -----------
INTEREST INCOME:
LOANS $ 12,311 $ 11,962 $ 12,188 $ 11,860 $ 11,469
MORTGAGE-BACKED SECURITIES 742 751 785 833 791
INVESTMENT SECURITIES 257 185 178 209 203
INTEREST-BEARING DEPOSITS AND OTHER 651 607 610 571 522
----------- ----------- ----------- ----------- -----------
TOTAL INTEREST INCOME 13,961 13,505 13,761 13,473 12,985
----------- ----------- ----------- ----------- -----------
INTEREST EXPENSE:
DEPOSITS 3,786 3,503 3,723 3,570 3,303
BORROWINGS 2,646 2,634 3,355 3,497 3,406
----------- ----------- ----------- ----------- -----------
TOTAL INTEREST EXPENSE 6,432 6,137 7,078 7,067 6,709
----------- ----------- ----------- ----------- -----------
NET INTEREST INCOME 7,529 7,368 6,683 6,406 6,276
PROVISION FOR LOSSES ON LOANS 360 240 855 255 255
----------- ----------- ----------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 7,169 7,128 5,828 6,151 6,021
----------- ----------- ----------- ----------- -----------
NONINTEREST INCOME
LATE CHARGES, RENT AND OTHER 715 745 585 623 600
LOAN SERVICING FEES 371 378 381 373 379
SERVICE CHARGES AND OTHER FEES ON DEPOSITS 386 334 404 407 327
GAIN ON SALE OF LOANS 179 170 140 189 214
VALUATION OF MORTGAGE SERVICING RIGHTS - NET (42) 51 269 206 29
GAIN ON SALE OF INVESTMENT, MBS & FIXED ASSETS 0 19 6,653 10 23
GAIN ON SALE OF REAL ESTATE ACQ'D THROUGH FORECLOSURE 25 9 123 106 131
----------- ----------- ----------- ----------- -----------
TOTAL NONINTEREST INCOME 1,634 1,706 8,555 1,914 1,703
----------- ----------- ----------- ----------- -----------
NON INTEREST EXPENSE
EMPLOYEE COMPENSATION AND BENEFITS 2,811 2,964 2,655 2,763 2,672
OCCUPANCY AND EQUIPMENT 763 797 821 867 828
DATA PROCESSING 347 331 331 320 325
ADVERTISING 303 229 225 387 181
FRANCHISE TAXES 67 79 201 283 294
OTHER OPERATING 1,519 1,165 1,317 1,307 1,194
FHLB PREPAYMENT PENALTY (1) 0 0 18,879 0 0
----------- ----------- ----------- ----------- -----------
TOTAL NONINTEREST EXPENSE 5,810 5,565 24,429 5,927 5,494
----------- ----------- ----------- ----------- -----------
NET INCOME - BEFORE INCOME TAX 2,993 3,269 (10,046) 2,138 2,230
PROVISION FOR INCOME TAXES 953 1,051 (3,476) 670 698
----------- ----------- ----------- ----------- -----------
REPORTED NET INCOME 2,040 2,218 (6,570) 1,468 1,532
----------- ----------- ----------- ----------- -----------
ADJUSTED FOR NON-RECURRING ITEMS
SALE OF BRANCHES 0 0 (4,024)
FHLB PREPAYMENT COSTS (NET OF TAX) 0 0 12,460 0 0
- - ------ - -
----------- ----------- ----------- ----------- -----------
NET EARNINGS FROM OPERATIONS 2,040 2,218 1,866 1,468 1,532
=========== =========== =========== =========== ===========
EARNINGS PER SHARE REPORTED:
BASIC $ 0.27 $ 0.29 ($0.89) $ 0.20 $ 0.21
DILUTED $ 0.27 $ 0.29 N/A $ 0.19 $ 0.21
EARNINGS PER SHARE OPERATIONS:
BASIC $ 0.27 $ 0.29 $ 0.24 $ 0.20 $ 0.21
DILUTED $ 0.27 $ 0.29 $ 0.24 $ 0.19 $ 0.21
BASIC WEIGHTED NUMBER OF
SHARES OUTSTANDING 7,660,120 7,677,795 7,645,005 7,513,890 7,357,635
DILUTED WEIGHTED NUMBER OF
SHARES OUTSTANDING 7,681,186 7,711,433 7,684,500 7,559,916 7,403,929
CAMCO FINANCIAL CORPORATION
SELECTED RATIOS AND STATISTICS
PERIODS ENDED JUNE 30, 2005 AND 2004
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA AND SHARES OUTSTANDING)
6 MONTHS 6 MONTHS 3 MONTHS 3 MONTHS
ENDED ENDED ENDED ENDED
6/30/05 6/30/04 6/30/05 6/30/04
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ----------- ----------- -----------
REPORTED:
RETURN ON AVERAGE EQUITY 9.45% 5.52% 9.05% 6.59%
RETURN ON AVERAGE ASSETS 0.80% 0.49% 0.77% 0.58%
INTEREST RATE SPREAD 2.75% 2.23% 2.76% 2.24%
NET INTEREST MARGIN 2.95% 2.47% 2.97% 2.47%
YIELD ON EARNING ASSETS 5.44% 5.14% 5.51% 5.11%
COST OF DEPOSITS 2.26% 2.05% 2.34% 2.03%
COST OF FUNDS 3.62% 4.93% 3.66% 4.81%
TOTAL COST OF INTEREST BEARING LIABILITIES 2.69% 2.91% 2.75% 2.87%
NONINTEREST EXPENSE/AVERAGE ASSETS 2.14% 2.17% 2.18% 2.07%
EFFICIENCY RATIO 62.37% 72.91% 63.41% 68.86%
NON PERFORMING ASSETS TO TOTAL ASSETS 1.09% 1.32% 1.20% 1.32%
NON PERFORMING LOANS TO TOTAL NET LOANS INCLUDING
LOANS HELD FOR SALE 1.11% 1.39% 1.27% 1.39%
ALLOWANCE FOR LOAN LOSSES TO TOTAL LOANS 0.78% 0.66% 0.78% 0.66%
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
JUNE 2005, MARCH 2005 AND DECEMBER 2004
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA AND SHARES OUTSTANDING)
AVERAGE TABLE - QUARTER ENDED
-------------------------------------------------------------------------------------
JUN 30, 2005 MAR 31, 2005 DEC 31, 2004
--------------------------- --------------------------- ---------------------------
Average Yield/ Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate Balance Interest Rate
--------- -------- ------ --------- -------- ------ --------- -------- ------
INTEREST - EARNING ASSETS:
Loans held for sale 4,078 4,006 4,326
Loans receivable - net 839,894 12,311 5.83% 836,569 11,962 5.69% 869,716 12,188 5.58%
Mortgage-backed securities 78,766 742 3.77% 82,381 751 3.65% 87,825 785 3.58%
Investment securities 30,723 257 3.35% 24,369 185 3.04% 24,655 178 2.89%
Interest-bearing deposits and other 59,353 651 4.39% 60,050 607 4.04% 61,389 610 3.97%
--------- ------ ---- --------- ------ ---- --------- ------ ----
Total interest earning assets 1,012,814 13,961 5.51% 1,007,375 13,505 5.36% 1,047,911 13,761 5.25%
--------- ------ ---- --------- ------ ---- --------- ------ ----
Noninterest-earning assets 52,489 56,173 55,825
--------- --------- ---------
TOTAL ASSETS 1,065,303 1,063,548 1,103,736
========= ========= =========
INTEREST-BEARING LIABILITIES:
Deposits 646,923 3,786 2.34% 642,359 3,503 2.18% 690,919 3,723 2.16%
Advances 289,058 2,646 3.66% 293,551 2,634 3.59% 278,873 3,355 4.81%
--------- ------ ---- --------- ------ ---- --------- ------ ----
Total interest-bearing liabilities 935,981 6,432 2.75% 935,910 6,137 2.62% 969,792 7,078 2.92%
--------- ------ ---- --------- ------ ---- --------- ------ ----
Noninterest-bearing sources:
Noninterest-bearing liabilities 39,123 37,710 38,163
Shareholders' equity 90,199 89,928 95,781
--------- --------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,065,303 1,063,548 1,103,736
========= ========= =========
----- ---- ----- ---- ----- ----
NET INTEREST INCOME & MARGIN 7,529 2.97% 7,368 2.93% 6,683 2.55%
===== ==== ===== ==== ===== ====