EXHIBIT 99
logo CAMCO FINANCIAL CORPORATION
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6901 Glenn Highway CONTACTS:
Cambridge, OH 43725-9757 RICHARD C. BAYLOR, CEO
Phone: 740-435-2020 PHONE: 740-435-2040
Fax: 740-432-2743 [Private Fax]
OR
MARK A. SEVERSON
PHONE: 740-435-2055
FINAL
NEWS RELEASE
RELEASE DATE: OCTOBER 21, 2005
RELEASE TIME: 4:00 P.M.
CAMCO FINANCIAL ANNOUNCES STRONG THIRD QUARTER 2005
EARNINGS GROWTH
CAMBRIDGE, OHIO (NASDAQ: CAFI) - Camco Financial Corporation (Camco) reported
net earnings for the quarter ended September 30, 2005 of $2.04 million or $.27
per share as compared with net earnings of $1.47 million or $.20 per share for
the same quarter in 2004, an increase of 38.8%.
For the nine months ended September 30, 2005 Camco reported net
earnings of $6.30 million compared to $4.03 million of net earnings reported for
the same nine month period in 2004, an increase of 56.1%. Basic earnings per
share for the nine months ended September 30, 2005 were $.82 compared to $.54
for the same nine month period in 2004.
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CAMCO FINANCIAL CORPORATION
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6901 Glenn Highway
Cambridge, OH 43725-9757
Phone: 740-435-2020
Fax: 740-435-2021
Camco recently announced a quarterly cash dividend of $.145 which was
payable October 21, 2005. This dividend represents an annualized yield of 4.10%
on Camco's September 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 third quarter,
commercial and consumer loans represented 45% of our loan portfolio, versus 39%
one year ago. We are encouraged to see our annualized return on average equity
for the nine months ended September 30, 2005 at 9.28% which is above of the
average of all publicly traded Ohio banks." In addition our return on average
tangible equity, which excludes Goodwill, was 9.96% for the same nine month
period.
Mr. Baylor continued, "The average yield on our earning assets
continues to increase as we execute our strategic plan to shift the composition
of our loan portfolio. For the third quarter 2005, the yield on our interest
earning assets increased 52 basis points from last year's third quarter, and the
cost of interest bearing liabilities has only increased 2 basis points. That the
cost of our liabilities only increased two basis points, demonstrates the value
of the fourth quarter of 2004 restructuring of the Federal Home Loan Bank
borrowings. We continue to focus on producing higher margin 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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CAMCO FINANCIAL CORPORATION
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6901 Glenn Highway
Cambridge, OH 43725-9757
Phone: 740-435-2020
Fax: 740-435-2021
REVIEW OF SIGNIFICANT AREAS:
NET INTEREST MARGIN: During the third quarter of 2005, as short-term interest
rates continued rising, the net interest margin improved to 2.94% in the third
quarter 2005 from 2.44% in the third quarter of 2004. 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 quarter ended September 30, 2005 total non-interest
income decreased 19.4% to $1.54 million from $1.91 million for the same period
last year. Core non-interest income, which is net of mortgage servicing rights,
increased 6.5% to $1.82 million from $1.71 million. This increase was primarily
due to an increase in commercial loan prepayment fees of approximately $95,000
and an increase of $25,000 from "Extended Overdraft" fee income, which was
formally introduced in July of 2004. For the quarter ended September 30, 2005,
$16.9 million of loans were sold with a total gain of $215,000 as compared to
$19.6 million sold in the third quarter of 2004 for a gain of $189,000. Although
less volume overall was originated and sold, the profit margin increased on the
sales from .96% to 1.28%. The amount of fixed rate loans sold in the third
quarter of 2005 decreased due to rising interest rates with a higher percentage
of adjustable rate loans being originated and retained in the bank's portfolio.
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CAMCO FINANCIAL CORPORATION
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6901 Glenn Highway
Cambridge, OH 43725-9757
Phone: 740-435-2020
Fax: 740-435-2021
Mortgage servicing rights had a net reduction in the quarter ended September 30,
2005 of $276,000 versus the quarter ended September 30, 2004, which had a net
increase of $206,000. Loan sales were down 14.0% to $16.9 million versus $19.6
million and the overall value of mortgage servicing rights also decreased from
1.23% to 1.22% as a percent of loans serviced.
OPERATING EXPENSES: For the quarter ended September 30, 2005, operating expenses
were $5.73 million compared to $5.93 million for the comparable period in 2004,
or a decrease of 3.2%. As a percentage of average assets, operating expenses
decreased slightly to 2.13% from 2.15%.
The efficiency ratio improved to 62.60% in the third quarter 2005 from 71.24%
for the same quarter in 2004. This improvement was accomplished through a 9.3%
increase in total revenue combined with the 3.2% decrease in operating expenses.
ASSET QUALITY: Non-performing loans as a percentage of loans increased from
1.13% at June 30, 2005 to 1.52% at September 30, 2005. The allowance for loan
losses as a percentage of loans was 78 basis points at September 30, 2005. At
September 30, 2005, total non-performing loans were $13.03 million, of which
approximately 54.5% were single family residential loans. The Company has
experienced an increase in loans sixty days or more delinquent during the period
from June 30, 2005 to September 30, 2005 of 1.22% to 1.59% respectively.
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CAMCO FINANCIAL CORPORATION
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6901 Glenn Highway
Cambridge, OH 43725-9757
Phone: 740-435-2020
Fax: 740-435-2021
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.
The newest banking center in Vienna, West Va. opened in July 2005 and another
new branch planned for the high growth northern Cincinnati suburb of
Tylersville, Ohio should open in the second quarter of 2006.
Camco Financial Corporation, holding company for Advantage Bank, is a
$1.08 billion multi-state community bank holding company headquartered in
Cambridge, Ohio. Advantage Bank and its affiliates offer community banking that
includes commercial, business and consumer financial services, internet banking
and title insurance services from 29 offices in 22 communities in Ohio, Kentucky
and West Virginia.
Additional information about Camco Financial may be found on Camco's web site:
www.advantagebank.com.
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CAMCO FINANCIAL CORPORATION
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6901 Glenn Highway
Cambridge, OH 43725-9757
Phone: 740-435-2020
Fax: 740-435-2021
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) (UNAUDITED) AUDITED (UNAUDITED)
9/30/05 6/30/05 3/31/05 12/31/04 9/30/04
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ASSETS
Cash and Cash Equivalents 34,274 36,778 39,795 $ 42,894 $ 45,291
Investments 113,206 113,517 109,179 108,429 117,370
Loans Held for Sale 5,317 3,441 4,616 2,837 4,386
Loans Receivable 856,468 847,731 843,777 840,305 898,355
Allowance for Loan Loss (6,642) (6,540) (6,637) (6,476) (6,398)
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Loans Receivable, Net 849,826 841,191 837,140 833,829 891,957
Goodwill 6,683 6,683 6,683 6,736 7,023
Other Assets 68,014 67,747 67,221 71,098 68,078
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TOTAL ASSETS $ 1,077,320 $ 1,069,357 $ 1,064,634 $ 1,065,823 $ 1,134,105
=========== =========== =========== =========== ===========
LIABILITIES
Deposits 669,908 669,283 674,853 $ 667,778 $ 728,918
Borrowed Funds 305,211 298,295 289,302 295,310 291,719
Other Liabilities 11,835 11,123 10,900 13,414 16,441
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TOTAL LIABILITIES 986,954 978,701 975,055 976,502 1,037,078
STOCKHOLDERS EQUITY 90,366 90,656 89,579 89,321 97,027
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,077,320 $ 1,069,357 $ 1,064,634 $ 1,065,823 $ 1,134,105
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STOCKHOLDERS' EQUITY TO
TOTAL ASSETS 8.39% 8.48% 8.41% 8.38% 8.56%
TOTAL SHARES OUTSTANDING 7,621,385 7,643,746 7,678,747 7,663,153 7,640,505
BOOK VALUE PER SHARE $ 11.86 $ 11.86 $ 11.67 $ 11.66 $ 12.70
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
9/30/05 6/30/05 3/31/05 12/31/04 9/30/04
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
INTEREST INCOME:
LOANS $ 12,729 $ 12,311 $ 11,962 $ 12,188 $ 11,860
MORTGAGE-BACKED SECURITIES 679 742 751 785 833
INVESTMENT SECURITIES 358 257 185 178 209
INTEREST-BEARING DEPOSITS AND OTHER 689 651 607 610 571
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TOTAL INTEREST INCOME 14,455 13,961 13,505 13,761 13,473
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INTEREST EXPENSE:
DEPOSITS 4,009 3,786 3,503 3,723 3,570
BORROWINGS 2,893 2,646 2,634 3,355 3,497
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TOTAL INTEREST EXPENSE 6,902 6,432 6,137 7,078 7,067
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NET INTEREST INCOME 7,553 7,529 7,368 6,683 6,406
PROVISION FOR LOSSES ON LOANS 360 360 240 855 255
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 7,193 7,169 7,128 5,828 6,151
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NONINTEREST INCOME
LATE CHARGES, RENT AND OTHER 818 715 745 585 623
LOAN SERVICING FEES 368 371 378 381 373
SERVICE CHARGES AND OTHER FEES ON DEPOSITS 370 386 334 404 407
GAIN ON SALE OF LOANS 215 179 170 140 189
MORTGAGE SERVICING RIGHTS - NET (276) (42) 51 269 206
GAIN ON SALE OF INVESTMENT, MBS & FIXED ASSETS 66 0 19 6,653 10
GAIN ON SALE OF REAL ESTATE ACQ'D THROUGH FORECLOSURE (18) 25 9 123 106
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TOTAL NONINTEREST INCOME 1,543 1,634 1,706 8,555 1,914
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NON INTEREST EXPENSE
EMPLOYEE COMPENSATION AND BENEFITS 3,008 2,811 2,964 2,655 2,763
OCCUPANCY AND EQUIPMENT 780 763 797 821 867
DATA PROCESSING 317 347 331 331 320
ADVERTISING 345 303 229 225 387
FRANCHISE TAXES 71 67 79 201 283
OTHER OPERATING 1,214 1,519 1,165 1,317 1,307
FHLB PREPAYMENT PENALTY (1) 0 0 0 18,879 0
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TOTAL NONINTEREST EXPENSE 5,735 5,810 5,565 24,429 5,927
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NET INCOME - BEFORE INCOME TAX 3,001 2,993 3,269 (10,046) 2,138
PROVISION FOR INCOME TAXES 963 953 1,051 (3,476) 670
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REPORTED NET INCOME 2,038 2,040 2,218 (6,570) 1,468
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ADJUSTED FOR NON-RECURRING ITEMS
SALE OF BRANCHES 0 0 0 (4,024)
FHLB PREPAYMENT COSTS (NET OF TAX) 0 0 0 12,460 0
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NET EARNINGS FROM OPERATIONS 2,038 2,040 2,218 1,866 1,468
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EARNINGS PER SHARE REPORTED:
BASIC $ 0.27 $ 0.27 $ 0.29 $ (0.89) $ 0.20
DILUTED $ 0.27 $ 0.27 $ 0.29 N/A $ 0.19
EARNINGS PER SHARE OPERATIONS:
BASIC $ 0.27 $ 0.27 $ 0.29 $ 0.24 $ 0.20
DILUTED $ 0.27 $ 0.27 $ 0.29 $ 0.24 $ 0.19
BASIC WEIGHTED NUMBER OF
SHARES OUTSTANDING 7,632,132 7,660,120 7,677,795 7,645,005 7,513,890
DILUTED WEIGHTED NUMBER OF
SHARES OUTSTANDING 7,638,147 7,681,186 7,711,433 7,684,500 7,559,916
CAMCO FINANCIAL CORPORATION
SELECTED RATIOS AND STATISTICS
PERIODS ENDED SEPTEMBER 30, 2005 AND 2004
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA AND SHARES OUTSTANDING)
9 MONTHS 9 MONTHS 3 MONTHS 3 MONTHS
ENDED ENDED ENDED ENDED
9/30/05 9/30/04 9/30/05 9/30/04
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
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REPORTED:
RETURN ON AVERAGE EQUITY 9.28% 5.75% 8.96% 6.23%
RETURN ON AVERAGE ASSETS 0.79% 0.50% 0.76% 0.53%
INTEREST RATE SPREAD 2.74% 2.23% 2.72% 2.22%
NET INTEREST MARGIN 2.95% 2.45% 2.94% 2.44%
YIELD ON EARNING ASSETS 5.50% 5.13% 5.64% 5.12%
COST OF DEPOSITS 2.34% 2.06% 2.50% 2.09%
COST OF FUNDS 3.69% 4.89% 3.81% 4.79%
TOTAL COST OF INTEREST BEARING LIABILITIES 2.76% 2.90% 2.92% 2.90%
NONINTEREST EXPENSE/AVERAGE ASSETS 2.13% 2.16% 2.13% 2.15%
EFFICIENCY RATIO 62.60% 72.33% 63.05% 71.24%
NON PERFORMING ASSETS TO TOTAL ASSETS 1.40% 1.11% 1.40% 1.11%
NON PERFORMING LOANS TO TOTAL NET LOANS INCLUDING
LOANS HELD FOR SALE 1.52% 1.13% 1.52% 1.13%
ALLOWANCE FOR LOAN LOSSES TO TOTAL LOANS 0.78% 0.72% 0.78% 0.72%
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 2005
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA AND SHARES OUTSTANDING)
AVERAGE TABLE - QUARTER ENDED
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SEPT 30, 2005 JUN 30, 2005 MAR 31, 2005
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Average Yield/ Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate Balance Interest Rate
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INTEREST - EARNING ASSETS:
Loans held for sale 4,547 4,078 4,006
Loans receivable - net 848,600 12,729 5.97% 839,894 12,311 5.83% 836,569 11,962 5.69%
Mortgage-backed securities 73,290 679 3.71% 78,766 742 3.77% 82,381 751 3.65%
Investment securities 39,555 358 3.62% 30,723 257 3.35% 24,369 185 3.04%
Interest-bearing deposits
and other 60,004 689 4.59% 59,353 651 4.39% 60,050 607 4.04%
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Total interest earning assets 1,025,996 14,455 5.64% 1,012,814 13,961 5.51% 1,007,375 13,505 5.36%
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Noninterest-earning assets 50,918 52,489 56,173
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TOTAL ASSETS 1,076,914 1,065,303 1,063,548
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INTEREST-BEARING LIABILITIES:
Deposits 642,363 4,009 2.50% 646,923 3,786 2.34% 642,359 3,503 2.18%
Advances 303,520 2,893 3.81% 289,058 2,646 3.66% 293,551 2,634 3.59%
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Total interest-bearing
liabilities 945,883 6,902 2.92% 935,981 6,432 2.75% 935,910 6,137 2.62%
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Noninterest-bearing sources:
Noninterest-bearing liabilities 40,069 39,123 37,710
Shareholders' equity 90,962 90,199 89,928
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 1,076,914 1,065,303 1,063,548
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NET INTEREST INCOME & MARGIN 7,553 2.94% 7,529 2.97% 7,368 2.93%
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