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Camco Financial Announces Fourth Quarter And Full-Year 2012 Earnings

CAMBRIDGE, Ohio, Jan. 31, 2013 (GLOBE NEWSWIRE) -- Camco Financial Corporation (Nasdaq:CAFI), the bank holding company for Advantage Bank, today announced financial results for the three months and twelve months ended December 31, 2012. Net earnings increased to $2.8 million or $0.26 per diluted share for the fourth quarter 2012 from $0.9 million or $.12 per diluted share for the same period of the prior year. For the full-year 2012, net earnings were $4.2 million or $0.50 per diluted share compared with $0.2 million or $0.03 per diluted share for 2011.

Jim Huston, President and CEO, commented, "Our fourth quarter and full-year 2012 financial statements reflect solid achievements in key areas that further strengthened our balance sheet. In addition to our solid operating results, we successfully completed a $10.0 million rights and public offering in November, 2012. Those two factors enabled us to end the year 2012 with approximately $60.0 million in stockholders' equity. This represents Tier 1 equity of 8.42% of total assets compared to 6.56% at December 31, 2011. We continue to implement plans to improve our long-term performance through rigorous attention to net interest margin coupled with opportunities to increase noninterest income while also reducing noninterest expense. We exited 2012 stronger than we entered the year and anticipate attaining further progress in 2013."

Review of Financial Performance

Overview:

The following items summarize key achievements of the Company during the fourth quarter and fiscal year 2012:

Fourth Quarter 2012

  • The Company successfully raised $10.0 million of capital through a shareholder rights and public offering in November 2012, which resulted in the issuance of 5.7 million shares of common stock.
  • Net interest margin decreased 0.04% from the linked quarter, principally due to lower yield on earning assets.
  • Noninterest income increased $0.6 million from the linked quarter and $1.2 million from the fourth quarter 2011, driven by higher gain on sale of loans and higher loan fee income, along with improvement in the value of mortgage servicing rights, offset partially by decreased gain on sale of investments.
  • Noninterest expense decreased $0.6 million compared to the same quarter ended December 31, 2011, primarily due to lower expenses related to real estate owned.
  • Classified loans (which includes substandard, doubtful, and loss) at December 31, 2012 were $3.4 million below the linked quarter.
  • A charge-off of $0.6 million for Other Real Estate Owned was recorded due to deterioration of real estate values.

Full-Year 2012

  • Core deposits (defined as checking, savings, and money market deposits) increased $39.1 million, or 13.8%, in 2012 compared to the same date of the prior year.
  • Net interest margin decreased 0.25% to 3.41% for the full-year 2012 compared to a year ago, primarily due to lower yield on earning assets. Cost of funds for the full-year 2012 was 33 basis points below 2011.
  • Classified loans at December 31, 2012 were $11.6 million below the same date of the prior year.
  • Tier 1 equity at December 31, 2012 was 8.42% compared to 6.56% at December 31, 2011, an increase of 186 basis points.
  • Noninterest income increased $1.5 million compared to a year ago, driven by higher gain on sale of loans and higher loan fee income, along with improvement in the value of mortgage servicing rights, offset partially by decreased gain on sale of investments.
  • Noninterest expense decreased $1.7 million compared to 2011, primarily due to lower expenses related to real estate owned.

Net Interest Margin:

Net interest margin decreased to 3.36% for the fourth quarter 2012 compared to 3.49% for the third quarter 2012. For the full-year 2012, net interest margin decreased 0.25% from 3.66% for 2011, driven by a reduction in the bank's yield on earning assets in this low rate environment. Management expects the Company's net interest margin to remain relatively stable during this period of low interest rates and slow economic growth, but will continue to seek opportunities for more favorable pricing, further improvement in credit quality, and other ways to maintain net interest margin going forward.

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