8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 24, 2006

CAMCO FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

DELAWARE	0-25196	51-0110823
(State or other jurisdiction of	(Commission File No.)	(IRS Employer I.D. No.)
incorporation)

6901 Glenn Highway, Cambridge, Ohio 43725

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:                     (740) 435-2020                                        

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Section 2 — Financial Information

TABLE OF CONTENTS

Exhibit 99.1

Exhibit 99.2

Item 2.02 Results of Operations and Financial Condition.

     On April 24, 2006, Camco Financial Corporation (“Camco”) issued a press release regarding its earnings for the quarter ended March 31, 2006. The press release is attached as Exhibit 99.1 hereto and is incorporated herein by reference.

Section 8 — Other Events

Item 8.01. Other Events.

     On April 25, 2006, Camco issued a press release announcing a stock repurchase plan. The press release is attached hereto as Exhibit 99.2

Section 9 — Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(a)	Financial statements of business acquired.
	Not applicable.
(b)	Pro forma financial information.
	Not applicable.
(c)	Exhibits.

Exhibit No.	Description
99.1	Press Release of Camco dated April 24, 2006
99.2	Press Release of Camco dated April 25, 2006

2

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CAMCO FINANCIAL CORPORATION
By:	/s/ Mark A. Severson    Mark A. Severson
	Chief Financial Officer

Date: April 27, 2006

3

EX-99.1

Exhibit 99.1

Contacts:
	Richard C. Baylor, CEO
	Phone: 740-435-2040
Or
	Mark A. Severson, CFO
	Phone: 740-435-2055

NEWS RELEASE

Release Date: April 24, 2006

Release Time: 4:00 P.M.

Camco Financial Announces First Quarter 2006 Earnings

Cambridge, Ohio (Nasdaq: CAFI) — Camco Financial Corporation (“Camco”) reported net earnings for the quarter ended March 31, 2006 of $1.68 million or $.22 per basic share as compared with net earnings of $2.22 million or $.29 per share for the same quarter in 2005.

     Camco recently announced an increase of its quarterly cash dividend to $.15 from $.145 for the dividend payable on April 21, 2006. This dividend represents an annualized yield of 4.17% on Camco’s March 31, 2006 quarter-end market value. Also, in the first quarter 2006, Camco purchased 42,000 shares under the stock repurchase program.

     President & CEO Richard C. Baylor commented, “We continue to see progress in our efforts to restructure the composition of our balance sheet. We are staying on course with our strategic plan to grow consumer and commercial loan assets, which now comprise 46% of our total loan portfolio and contributed to the increase in the net interest margin. The decrease in our earnings stems from lower non-interest income primarily due to a decision to no longer accrue late charges on commercial loans. In addition, we increased employees in important revenue generating areas

4

such as commercial loan officers and commercial lending operations staff during the first quarter of 2006. Competition for loan volume has been acute, yet we are not willing to sacrifice future quality for current growth and therefore our loan outstandings have not shown growth for the first quarter 2006.”

     Mr. Baylor continued, “With our net interest margin increasing to 3.06% we have seen the average yield on our earning assets increase at a faster pace than the cost of our interest bearing liabilities. We attribute this improvement to the shift in loan portfolio composition as well as the series of prime rate increases that have occurred over the past year. To encourage this improvement we have recently recruited two seasoned commercial lenders in markets that we serve, which continues our efforts to grow our commercial loan portfolio. In addition, since December 31, 2005, we have been successful in growing deposits by $16.1 million while reducing generally more expensive FHLB advances and repos by $26.9 million.”

Review of significant areas:

Net Interest Margin:

During the first quarter of 2006 the net interest margin rose to 3.06%, versus 2.93% for the first quarter 2005. The primary reason for this growth in the net interest margin was the yield on earnings assets rising faster than the cost of interest bearing liabilities. The yield on earning assets increased from 5.36% in the first quarter 2005 to 5.96% in the first quarter 2006 or 60 basis points. Conversely the total cost of interest bearing liabilities increased from 2.62% in the first quarter 2005 to 3.17% in the first quarter of 2006 or 55 basis points.

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Non-Interest Income:

For the quarter ended March 31, 2006, non-interest income decreased to $1.31 million from $1.71 million in the first quarter 2005. During the first quarter 2006, $11.8 million of loans were sold with a total gain of $99,000 as compared to $14.4 million sold in the first quarter of 2005 for a gain of $170,000.

Mortgage servicing rights were reduced in value in the first quarter of 2006 by $22,000 versus the first quarter of 2005, which had an increase in value of $51,000. This decrease was primarily a function of lower loan sales in the first quarter 2006 vs. the first quarter 2005. In addition management decided to discontinue the accrual of late charges on commercial loans in the first quarter 2006 and moved to a method that will recognize late charges as income when collected. This decision resulted in a decrease in non-interest income in the first quarter 2006 of $166,000.

Operating Expenses:

For the first quarter ended March 31, 2006, operating expenses were $6.3 million compared to $5.6 million for the first quarter 2005. Approximately one-half of this increase was attributable to salaries and benefits. The company has recently made several key hires within the mid-management level of the company as well as commercial lenders in the markets we serve. Additional collection staff has also been hired. In addition, compensation expense related to stock options under FAS123R was $34,000 in the first quarter 2006. Ohio franchise taxes were $166,000 higher in the first quarter 2006 compared to the first quarter 2005, as this expense had previously been reduced due to the 2004 London Financial acquisition which produced a one-time savings that occurred in 2005.

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Asset Quality:

Non-performing loans as a percentage of total loans increased from 1.28% at March 31, 2005 to 1.75% at March 31, 2006. The allowance for loan losses as a percentage of loans increased from 79 basis points at March 31, 2005 to 87 basis points at March 31, 2006, as management continues to increase the Bank’s reserves against the backdrop of a sluggish Midwest manufacturing economy.

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 correspondent increase in net interest margin. Complimentary revenue sources to enhance the net interest margin are being actively pursued while management remains vigilant to contain operating expenses in this transitional period.

Camco Financial Corporation, holding company of Advantage Bank, is a multi-state financial services 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.

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

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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.

NASDAQ: CAFI • EMAIL: camco@camco.cc • www.camcofinancial.com

Camco Financial Corporation
Condensed Consolidated Statements of Financial Condition
(In thousands, except for per share data and Shares Outstanding)

	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
	3/31/06			12/31/05			9/30/05			6/30/05			3/31/05
Assets
Cash and Cash Equivalents		29,861			33,085			34,274			36,778			39,795
Investments		109,460			113,690			113,206			113,517			109,179
Loans Held for Sale		3,325			1,968			5,317			3,441			4,616
Loans Receivable		847,426			853,701			856,468			847,731			843,777
Allowance for Loan Loss		(7,321	)		(6,959	)		(6,642	)		(6,540	)		(6,637	)
Loans Receivable, Net		840,105			846,742			849,826			841,191			837,140
Goodwill		6,683			6,683			6,683			6,683			6,683
Other Assets		68,996			69,080			68,014			67,747			67,221
Total Assets	$	1,058,430		$	1,071,248		$	1,077,320		$	1,069,357		$	1,064,634
Liabilities
Deposits		676,376			660,242			669,908			669,283			674,853
Borrowed Funds		280,280			307,223			305,211			298,295			289,302
Other Liabilities		11,543			13,020			11,835			11,123			10,900
Total Liabilities		968,199			980,485			986,954			978,701			975,055
Stockholders Equity		90,231			90,763			90,366			90,656			89,579
Total Liabilities and Stockholders’ Equity	$	1,058,430		$	1,071,248		$	1,077,320		$	1,069,357		$	1,064,634
Stockholders’ Equity to		8.52	%		8.47	%		8.39	%		8.48	%		8.41	%
Total Assets
Total Shares Outstanding		7,536,713			7,578,713			7,621,385			7,643,746			7,678,747
Book Value Per Share	$	11.97		$	11.98		$	11.86		$	11.86		$	11.67

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
	3/31/06			12/31/05			9/30/05			6/30/05			3/31/05
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Interest Income:
Loans		13,249			13,163		$	12,729		$	12,311		$	11,962
Mortgage-backed securities		633			655			679			742			751
Investment securities		480			466			358			257			185
Interest-bearing deposits and other		790			873			689			651			607
Total Interest Income		15,152			15,157			14,455			13,961			13,505
Interest Expense:
Deposits		4,424			4,136			4,009			3,786			3,503
Borrowings		2,949			2,922			2,893			2,646			2,634
Total Interest Expense		7,373			7,058			6,902			6,432			6,137
Net Interest Income		7,779			8,099			7,553			7,529			7,368
Provision for Losses on Loans		360			520			360			360			240
Net Interest Income After Provision for Loan Losses		7,419			7,579			7,193			7,169			7,128
Noninterest Income
Late charges, rent and other		462			550			818			715			745
Loan servicing fees		360			363			368			371			378
Service charges and other fees on deposits		352			393			370			386			334
Gain on sale of loans		99			119			215			179			170
Mortgage servicing rights		(22	)		287			(276	)		(42	)		51
Gain on sale of investment, mbs & fixed assets		—			36			66			0			19
Gain on sale of real estate acq’d through foreclosure		55			(39	)		(18	)		25			9
Total noninterest income		1,306			1,709			1,543			1,634			1,706
Non interest expense
Employee compensation and benefits		3,249			2,932			3,008			2,811			2,964
Occupancy and equipment		780			711			780			763			797
Data processing		393			373			317			347			331
Advertising		303			341			345			303			229
Franchise taxes		246			50			71			67			79
Other operating		1,291			1,237			1,214			1,519			1,165
Total noninterest expense		6,262			5,644			5,735			5,810			5,565
Net Income — Before Income Tax		2,463			3,644			3,001			2,993			3,269
Provision for income taxes		784			1,174			963			953			1,051
Net Earnings from Operations		1,679			2,470			2,038			2,040			2,218
Earnings Per Share Reported:
Basic	$	0.22		$	0.32		$	0.27		$	0.27		$	0.29
Diluted	$	0.22		$	0.32		$	0.27		$	0.27		$	0.29
Basic Weighted Number of Shares Outstanding		7,563,452			7,610,499			7,632,132			7,660,120			7,677,795
Diluted Weighted Number of Shares Outstanding		7,567,170			7,614,127			7,638,147			7,681,186			7,711,433

Camco Financial Corporation
Selected Ratios and Statistics
Periods Ended March 31, 2006 and 2005
(In thousands, except for per share data and shares outstanding)

	3 Months			3 Months
	Ended			Ended
	3/31/06			3/31/05
	(Unaudited)			(Unaudited)
Reported:
Return on Average Equity		7.38	%		9.87	%
Return on Average Assets		0.63	%		0.83	%
Interest Rate Spread		2.79	%		2.74	%
Net Interest Margin		3.06	%		2.93	%
Yield on earning assets		5.96	%		5.36	%
Cost of deposits		2.81	%		2.18	%
Cost of funds		3.92	%		3.59	%
Total cost of interest bearing liabilities		3.17	%		2.62	%
Noninterest expense/average assets		2.35	%		2.09	%
Efficiency Ratio		68.93	%		61.33	%
Non performing assets to total assets		1.55	%		1.21	%
Non performing loans to total net loans including loans held for sale		1.75	%		1.28	%
Allowance for loan losses to total loans		0.87	%		0.79	%

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
March 2006, December and September 2005
(In thousands, except for per share data and shares outstanding)

	Average Table - Quarter Ended
	Mar 31, 2006							Dec 31, 2005							Sept 30, 2005
	Average				Yield/			Average				Yield/			Average				Yield/
	Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate
Interest — Earning Assets:
Loans held for sale		2,550							3,197							4,547
Loans receivable — net		843,007		13,249		6.27	%		846,361		13,163		6.20	%		848,600		12,729		5.97	%
Mortgage-backed securities		62,981		633		4.02	%		67,372		655		3.89	%		73,290		679		3.71	%
Investment securities		48,795		480		3.93	%		47,013		466		3.96	%		39,555		358		3.62	%
Interest-bearing deposits and other		60,304		790		5.24	%		59,556		873		5.86	%		60,004		689		4.59	%
Total interest earning assets		1,017,637		15,152		5.96	%		1,023,499		15,157		5.92	%		1,025,996		14,455		5.64	%
Noninterest-earning assets		46,471							46,927							50,918
Total Assets		1,064,108							1,070,426							1,076,914
Interest-Bearing Liabilities:
Deposits		630,346		4,424		2.81	%		632,190		4,136		2.62	%		642,363		4,009		2.50	%
Advances		300,930		2,949		3.92	%		303,310		2,922		3.85	%		303,520		2,893		3.81	%
Total interest-bearing liabilities		931,276		7,373		3.17	%		935,500		7,058		3.02	%		945,883		6,902		2.92	%
Noninterest-bearing sources:
Noninterest-bearing liabilities		41,834							43,910							40,069
Shareholders’ equity		90,998							91,016							90,962
Total Liabilities and Shareholders’ Equity		1,064,108							1,070,426							1,076,914
Net Interest Income & Margin				7,779		3.06	%				8,099		3.17	%				7,553		2.94	%

EX-99.2

Exhibit 99.2

Contacts:
	Richard C. Baylor, CEO
	Phone: 740-435-2040
Or
	Mark A. Severson, CFO
	Phone: 740-435-2055

NEWS RELEASE

Release Date: April 25, 2006

Release Time: 4:00 P.M.

Camco Financial Announces 5% Stock Repurchase

Cambridge, Ohio (Nasdaq: CAFI) — The Board of Directors of Camco Financial Corporation has approved a stock repurchase plan under which the company may repurchase up to 5% of its outstanding common stock. Currently, Camco Financial has approximately 7.54 million common shares outstanding. This plan replaces a previous plan that was due to expire in April of 2006.

     It is anticipated that the company will complete the program through open market purchases. The repurchased shares will be reserved in treasury for general corporate purposes, including reissue in connection with possible stock dividends, stock option exercises or future acquisitions.

Camco Financial Corporation, holding company of Advantage Bank, is a multi-state financial services 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.

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

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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.

NASDAQ: CAFI • EMAIL: camco@camco.cc • www.camcofinancial.com