CAMBRIDGE, Ohio, Aug. 6, 2010 (GLOBE NEWSWIRE) -- Camco Financial Corporation (Nasdaq:CAFI), the financial services holding company for Advantage Bank, reported positive results for the second time this year, with net earnings of $348,000 for the first half of 2010, compared to $237,000 net earnings reported for the first half of 2009.

"At the end of last year, we committed to our employees, customers, shareholders and local community that we would make the difficult and necessary decisions to get us back on track in 2010," said James E. Huston, president and CEO. "Despite continued difficult economic times throughout our region and nationwide, we have shown that we are willing to take the incremental steps necessary to fulfill that promise with an increase in net earnings and earnings per share over 2009."

Net earnings for the quarter ended June 30, 2010, were $219,000, or $0.03 per share, compared to net earnings of $2,000, or $0.00 per share, for the same quarter in 2009. Earnings per share for the six months ended June 30, 2010 and 2009, were $0.05 and $0.03, respectively. Assets totaled $844.4 million at June 30, 2010.

"We have chosen to diligently focus on our classified assets, and we have seen a decrease of $6.3 million since March 2010," said Huston. "Additionally, while loans declined slightly in the second quarter, total loans have increased $17.7 million since December, driven by $65.0 million in commercial loan originations. Total delinquencies have decreased by $2.1 million since December as well. Our attention to these critical areas of our business is paying off, and we will make every effort to continue this trend."

"We continue to focus on smart growth strategies, including adding high quality commercial loans to our portfolio, which is benefitting our net interest margin as well," said Huston. Net interest margin increased to 3.32% for the first half of 2010, from 2.91% as of December 31, 2009. "And, while we did see a dip in our total deposits to date by $7 million, this was primarily due to the decrease in wholesale certificates of deposit."

"The first half of 2010 has shown that we continue our focus, determination and a willingness to work hard. We are excited at the opportunities we have for continuing this trend for the remainder of the year. However, to accomplish this, we must continue to be committed to making good business decisions each and every day. Our customers, shareholders and employees don't just expect it - they deserve it," said Huston.

Review of Financial Performance

Net Interest Margin : During the second quarter of 2010, net interest margin increased to 3.39% from 3.25% in the first quarter of 2010. The increase in the net interest margin of 14 basis points was primarily the result of a higher yield on earning assets as the Company's asset mix shifted further to loans due to the maturity of some investment securities. Cost of funds also contributed with a decrease of 11 basis points to 2.03%, which reflects continued re-pricing of certificates of deposit at the current lower interest rates.

Noninterest Income : For the quarter ended June 30, 2010, total noninterest income decreased to $1.6 million from $2.3 million for the same period last year. Total noninterest income declined $116,000 from the first quarter of 2010. This decrease was primarily due to decreases in rent and other, which was due to decreased production at Camco Title coupled with decreased insurance fees related to products that are no longer offered.   Additionally, the value of our mortgage servicing rights decreased in the second quarter of 2010 due to the current lower rate environment, which affected our seasoned portfolios. 

For the quarter ended June 30, 2010, $16.2 million of loans were sold with a total gain of $261,000, compared to $42.5 million sold in the second quarter of 2009, for a gain of $404,000. Continued low interest rates and a slowdown in housing sales have caused a reduction in loan applications.

Noninterest Expense For the quarter ended June 30, 2010, noninterest expense totaled $6.98 million, compared to $6.89 million for the comparable period in 2009, an increase of 1.19%. The increase was primarily due to increased employee compensation, professional services and loan and deposit expenses. These increases were offset partially by decreases in all other expenses. The year-over-year increase of $20,000 is primarily due to increased professional services.  

Asset Quality : Total delinquencies have decreased year-to-date, and classified assets decreased in the second quarter of 2010. Our nonperforming loans as a percentage of loans decreased to 6.15% at June 30, 2010, from 8.1% at June 30, 2009 and 6.18% at March 31, 2010. At June 30, 2010, nonperforming loans totaled $42.6 million compared to $42.1 million at March 31, 2010.   The allowance for loan losses as a percentage of loans decreased to 1.64% at June 30, 2010, driven primarily by specific loan charge-offs.  

About Camco Financial Corporation: Camco Financial Corporation, holding company for Advantage Bank, is a multi-state financial 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 26 offices. Additional information about Camco Financial may be found on the Company's web sites: www.camcofinancial.com or www.advantagebank.com.

The Camco Financial Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4639

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.
Camco Financial Corporation
Condensed Consolidated Statements of Financial Condition
(In thousands, except for per share data and shares outstanding)
           
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
  6/30/10 3/31/10 12/31/09 9/30/09 6/30/09
Assets          
 Cash and Cash Equivalents  33,567  28,294  38,153  58,244  82,126
 Investments   41,138  49,935  58,063  63,100  78,162
           
 Loans Held for Sale  1,669  1,600  475  2,186  5,370
           
 Loans Receivable  691,596  699,766  675,121  696,931  711,943
 Allowance for Loan Loss  (11,358) (15,821) (16,099) (12,505) (15,466)
 Loans Receivable, Net  680,238  683,945  659,022  684,426  696,477
           
 Other Assets 87,768 87,705 86,942 83,466 81,016
           
Total Assets  $ 844,380  $ 851,479  $ 842,655  $ 891,422  $ 943,151
           
Liabilities          
 Deposits  652,872  649,354  659,902  670,391  711,603
 Borrowed Funds  119,990  130,243  109,232  133,880  146,436
 Other Liabilities 10,294 11,002 13,007 14,552 13,182
           
Total Liabilities  783,156  790,599  782,141  818,823  871,221
           
Stockholders' Equity 61,224 60,880 60,514 72,599 71,930
           
Total Liabilities and Stockholders' Equity  $ 844,380  $ 851,479  $ 842,655  $ 891,422  $ 943,151
           
           
Stockholders' Equity to Total Assets 7.25% 7.15% 7.18% 8.14% 7.63%
           
Total Shares Outstanding  7,205,596  7,205,596  7,205,596  7,205,596  7,205,596
           
Book Value Per Share $8.50 $8.45 $8.40 $10.08 $9.98
 
Camco Financial Corporation
Condensed Consolidated Statements of Earnings
Year to Date Information
(In thousands, except for per share data and shares outstanding)
     
  6 Months 6 Months
  Ended Ended
  6/30/10 6/30/09
  (Unaudited) (Unaudited)
Interest Income:    
 Loans  18,561  20,613
 Mortgage-backed securities  903  1,270
 Investment securities  170  549
 Interest-bearing deposits and other  673  689
 Total Interest Income  20,307  23,121
     
Interest Expense:    
 Deposits   5,689  8,420
 Borrowings  1,989  2,971
 Total Interest Expense 7,678 11,391
Net Interest Income 12,629 11,730
     
Provision for Losses on Loans  1,799  1,438
Net Interest Income After Provision for Loan Losses 10,830 10,292
     
Noninterest Income:    
 Late charges, rent and other  737  982
 Loan servicing fees  637  632
 Service charges and other fees on deposits  1,116  1,071
 Gain on sale of loans  490  773
 Mortgage servicing rights   (94)  269
 Gain (loss) on sale of investment, mbs & fixed assets  (1)  4
 Income on cash surrender value life insurance  435  494
 Total noninterest income 3,320 4,225
     
Noninterest expense:    
 Employee compensation and benefits  6,654  6,540
 Occupancy and equipment  1,485  1,543
 Data processing  566  614
 Advertising   170  297
 Franchise taxes  534  582
 Other operating   4,508  4,321
 Total noninterest expense 13,917 13,897
     
Earnings before provision for income taxes 233 620
     
 Provision for income taxes  (115)  383
     
Net Earnings 348 237
     
Earnings Per Share Reported:    
Basic  $0.05 $0.03
Diluted  $0.05 $0.03
Earnings Per Share Operations:    
Basic  $0.05 $0.03
Diluted  $0.05 $0.03
     
Shares Outstanding  7,205,595  7,199,241
Diluted Weighted Number of     
Shares Outstanding  7,254,759  7,200,079
     
Camco Financial Corporation
Condensed Consolidated Statements of Operations
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
  6/30/10 3/31/10 12/31/09 9/30/09 6/30/09
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest Income:          
 Loans  9,281  9,280  9,670  9,948  10,046
 Mortgage-backed securities  428  475  517  551  606
 Investment securities  67  103  88  110  238
 Interest-bearing deposits and other  333  340  341  378  344
 Total Interest Income  10,109  10,198  10,616  10,987  11,234
           
Interest Expense:          
 Deposits   2,744  2,945  3,309  3,619  3,948
 Borrowings  992  997  1,085  1,189  1,402
 Total Interest Expense 3,736 3,942 4,394 4,808 5,350
Net Interest Income 6,373 6,256 6,222 6,179 5,884
           
Provision for Losses on Loans  894  905  19,914  440  790
Net Interest Income After Provision for Loan Losses 5,479 5,351 (13,692) 5,739 5,094
           
Noninterest Income:          
 Rent and other  328  409  419  292  521
 Loan servicing fees  320  317  316  316  316
 Service charges and other fees on deposits  598  518  593  613  570
 Gain on sale of loans  261  229  291  207  404
 Mortgage servicing rights   (124)  30  619  (185)  209
 Gain (loss) on sale of investment, mbs & fixed assets  (1)  --   (30)  153  4
 Income on CSVL (BOLI)  220  215  216  216  238
 Total noninterest income 1,602 1,718 2,424 1,612 2,262
           
Noninterest expense:          
 Employee compensation and benefits  3,269  3,385  2,866  3,047  3,064
 Occupancy and equipment  743  742  824  880  761
 Data processing  286  280  281  295  307
 Advertising   89  81  110  118  125
 Franchise taxes  269  265  215  221  314
 Other operating   2,319  2,189  2,672  2,688  2,322
 Total noninterest expense 6,975 6,942 6,968 7,249 6,893
           
Earnings (loss) before provision for income taxes 106 127 (18,236) 102 463
           
 Provision for income taxes  (113)  (2)  (6,427)  (253)  461
Net Earnings (loss) 219 129 (11,809) 355 2
           
Earnings (Loss) Per Share:          
Basic  $0.03 $0.02 ($1.64) $0.05 $0.00
Diluted  $0.03 $0.02 ($1.64) $0.05 $0.00
           
Basic Weighted Number of          
Shares Outstanding  7,205,595  7,205,595  7,205,595  7,205,595  7,205,595
Diluted Weighted Number of           
Shares Outstanding  7,268,926  7,239,067  7,205,595  7,206,474  7,211,674
         
         
         
Camco Financial Corporation
Selected Ratios and Statistics
(In thousands, except for per share data and shares outstanding)
         
  3 Months 3 Months 6 Months 6 Months
  Ended Ended Ended Ended
  6/30/10 6/30/09 6/30/10 6/30/09
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
         
Return on average equity 1.44% 0.01% 1.14% 0.66%
         
Return on average assets 0.10% 0.00% 0.08% 0.05%
         
Interest rate spread 3.35% 2.82% 3.26% 2.66%
         
Net interest margin 3.39% 2.82% 3.32% 2.71%
         
Yield on earning assets 5.38% 5.38% 5.34% 5.34%
         
Cost of deposits 1.80% 2.32% 1.86% 2.68%
         
Cost of borrowings 3.14% 3.64% 3.19% 3.57%
         
Total cost of interest bearing liabilities 2.03% 2.56% 2.08% 2.46%
         
Noninterest expense to average assets 3.28% 2.84% 3.27% 2.86%
         
Efficiency ratio 87.46% 84.62% 87.26% 87.10%
         
Nonperforming assets to total assets 6.31% 6.79% 6.31% 6.79%
         
Non performing loans to total net loans including         
 loans held for sale 6.15% 8.10% 6.15% 8.10%
         
Allowance for loan losses to total loans 1.64% 2.22% 1.64% 2.22%
         
         
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
(In thousands, except for per share data and shares outstanding)
             
             
  June 30, 2010 June 30, 2009
  Average   Yield/ Average   Yield/
  Balance Interest Rate Balance Interest Rate
Interest - Earning Assets:            
 Loans receivable - net (1)  651,552  9,281 5.70%  671,688  10,046 5.98%
 Securities (2)  44,952  495 4.40%  86,386  844 3.91%
 FHLB Stock  29,888  332 4.44%  29,888  332 4.44%
 Other interest bearing accounts  25,155  1 0.02%  47,217  12 0.10%
 Total interest earning assets  751,547  10,109 5.38%  835,179  11,234 5.38%
             
Noninterest-earning assets  99,262      124,573    
Total Average Assets  850,809      959,752    
             
             
Interest-Bearing Liabilities:            
 Deposits  610,144  2,744 1.80%  680,782  3,948 2.32%
 Advances & Borrowings  126,367  992 3.14%  154,066  1,402 3.64%
 Total interest-bearing liabilities  736,511  3,736 2.03%  834,848  5,350 2.56%
             
Noninterest-bearing sources:            
 Noninterest-bearing liabilities  53,272      52,671    
 Shareholders' equity  61,026      72,233    
Total Liabilities and Shareholders' Equity  850,809      959,752    
             
Net Interest margin     3.39%     2.82%
             
Net Interest Income & Spread    6,373 3.35%    5,884 2.82%
             
(1) Includes LHFS but does not include ALLL and Non-Accrual Loans
(2) Includes securities designated as available for sale and held to maturity
CONTACT:  Camco Financial Corporation          James E. Huston, CEO          740-435-2040

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