-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SvhrAnm9o2rzcc/L744rRqrtAdF1B5kaYUIlAIZl8AV36wlbVlQKU0mq6kqMEoZW HWtH+EYL3rtSCmq+dnv9sw== 0000950152-04-000475.txt : 20040126 0000950152-04-000475.hdr.sgml : 20040126 20040126143800 ACCESSION NUMBER: 0000950152-04-000475 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040123 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMCO FINANCIAL CORP CENTRAL INDEX KEY: 0000016614 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 510110823 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25196 FILM NUMBER: 04543150 BUSINESS ADDRESS: STREET 1: 6901 GLENN HIGHWAY CITY: CAMBRIDGE STATE: OH ZIP: 43725 BUSINESS PHONE: 7404325641 8-K 1 l05277ae8vk.txt CAMCO FINANCIAL CORPORATION 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): January 23, 2004 ---------------- CAMCO FINANCIAL CORPORATION ------------------------------ (Exact name of registrant as specified in its charter) DELAWARE 0-25196 51-0110823 - ---------------------------- ----------- ----------------------- (State or other jurisdiction (Commission (IRS Employer I.D. No.) of incorporation) File No.) 6901 Glenn Highway, Cambridge, Ohio 43725 --------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (740) 435-2020 ------------------------- Item 7. Financial Statements and Exhibits. (a) and (b) Not applicable. (c) Exhibits. See Index to Exhibits. Item 12. Results of Operations and Financial Condition. On January 23, 2004, Camco Financial Corporation ("Camco") issued a press release regarding its earnings for the fourth quarter of fiscal 2003. The press release is attached hereto as Exhibit 99. The press release includes one or more non-GAAP financial measures within the meaning of Regulation G. With respect to each, Camco has disclosed the most directly comparable financial measure calculated and presented in accordance with GAAP and reconciled the differences between the non-GAAP financial measure and the most comparable financial measure presented in accordance with GAAP. Camco believes that the presentation of the non-GAAP financial measures in the press release assists management and investors to compare results period-to-period in a more meaningful and consistent manner and provides a better measure of results for Camco's ongoing operations. -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: January 23, 2004 -3- INDEX TO EXHIBITS Exhibit Number Description - ------- ----------- 99 Press Release of Camco Financial Corporation dated January 23, 2004. -4- EX-99 3 l05277aexv99.txt EXHIBIT 99 EXHIBIT 99 CAMCO FINANCIAL ANNOUNCES FOURTH QUARTER 2003 EARNINGS Friday January 23, 5:03 pm ET CAMBRIDGE, Ohio--(BUSINESS WIRE)--Jan. 23, 2004--Camco Financial Corporation (Nasdaq:CAFI - News) reported net earnings for the quarter ended December 31, 2003 of $588,000 or $.09 per basic share as compared with $2.63 million, or $.34 per basic share, for the same quarter in 2002. The quarter ended December 31, 2003 includes expenses associated with the restructuring of a portion of Camco's Federal Home Loan Bank (FHLB) borrowings amounting to $.11 per basic share. Excluding the impact of this restructuring, net earnings for the quarter ended December 31, 2003 were $1.44 million and basic earnings per share for the fourth quarter of 2003 were $.20. For the year ended December 31, 2003, Camco reported net earnings of $6.86 million compared with $10.0 million for the year ended 2002. Basic earnings per share for 2003 were $.92 versus $1.27 for 2002. Excluding the impact of the restructuring of FHLB borrowings, Camco's net earnings for the year ended December 31, 2003 were $7.71 million, or $1.03 per basic share. Camco President & CEO Richard C. Baylor commented, "2003 was a disappointing year from an earnings perspective. 2003's income was impacted by the significant compression that has occurred in our net interest margin from 2.66% in 2002 to 2.34% in 2003, and the rapid decline in residential loan production since June of 2003. We believe 2004 net income may be lower than 2003 as we anticipate continued low interest rates that compress our net interest margin. We also do not expect to generate the level of gains from loan sales as recorded in 2003. Our current loan production has slowed approximately 60% from the strong levels of mid-year 2003, and although we closed a record $620 million in loans, we have only experienced growth in our loan portfolio in the last 6 months. $279 million of fixed rate loan production was sold to the secondary market for interest rate risk management purposes. Additionally, the refinancing of loans in 2003 significantly reduced our residential loan portfolio and our volume of interest income along with it." Mr. Baylor continued, "In the fourth quarter we restructured $25.35 million of FHLB borrowings having an average term of 19 months and an average fixed rate of 5.41%, replacing them with variable rate advances having a weighted average rate of approximately 1% at December 31, 2003. The prepayment fee incurred was $853,000 on an after tax basis but the positive net earnings impact in 2004 could approach $740,000 or $.10 per share as a result of the reduced borrowing cost." Mr. Baylor continued, "We continue to execute our strategic plan to effectively transition our balance sheet through the funding of higher yielding commercial real estate and consumer loans with lower cost transaction-based deposit accounts, thus providing higher net interest margins. Our reliance on higher cost certificates of deposit has decreased as a percentage of deposits to 54% at the end of 2003 from 57% at the end of 2002. Also, our deposit funding cost has decreased to 2.10% at the end of 2003 from 2.86% at the end of 2002." Baylor added, "One important aspect of our strategic plan is the growth in our commercial real estate lending and that production increased to $64 million in 2003 from $43 million in 2002, an increase of 46%. We continue to focus on building this line of business by recruiting seasoned commercial lenders in the markets we serve. We anticipate that our overall loan production may slow in 2004 from the record level of over $620 million in 2003, which was primarily driven by the refinance of residential home loans. This will afford us the opportunity to concentrate on the types of lending and deposit activity that will increase our margin for future profitability." -5- Baylor added, "Another component of our strategic plan is to effectively manage capital levels. In that regard we continue to coordinate a strong dividend payout ratio in conjunction with our Stock Repurchase Plan under which we purchased 54,000 shares in the fourth quarter, leaving us with 236,000 shares remaining under our current Stock Repurchase Plan. For calendar 2003, Camco's common stock price increased from $14.21 to $17.33, an increase of 22%, and it has increased 99% over the past three years. We have also maintained our strong dividend policy as Camco declared a cash dividend of $0.14 1/2 in the fourth quarter, payable January 16, 2004. This dividend represents a current annualized yield of 3.35% on Camco's year-end market value." Mr. Baylor concluded, "We have been positioned our balance sheet to take advantage of a rising rate environment that has yet to materialize. If and when rates do begin to rise we will be in a position to enhance income." Camco Financial Corporation, holding company for Advantage Bank, is a multi-state thrift holding company headquartered in Cambridge, Ohio. Advantage Bank and its affiliates offer community banking, mortgage banking, internet banking and title services from 32 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. -6- Camco Financial Corporation Condensed Consolidated Statements of Earnings Periods Ended December 31, 2003 and 2002 (In thousands, except for per share data and shares outstanding)
12 Months 12 Months 3 Months 3 Months Ended Ended Ended Ended 12/31/03 12/31/02 12/31/03 12/31/02 (Unaudited) (Unaudited) (Unaudited) ----------- ----------- ----------- Total Interest Income $54,875 $66,002 $12,922 $15,613 Total Interest Expense 31,237 38,556 7,282 9,037 ----------- ---------- ----------- ----------- Net Interest Income 23,638 27,446 5,640 6,576 Provision for Losses on Loans 1,446 1,169 516 417 ----------- ---------- ----------- ----------- Net Interest Income After Provision for Loan Losses 22,192 26,277 5,124 6,159 Other Income 11,411 10,100 2,185 3,059 General, Administrative, and Other Expense 22,404 21,570 5,214 5,299 Prepayment costs 1,292 0 1,292 0 ----------- ---------- ----------- ----------- Net Income - Before Income Tax 9,907 14,807 803 3,919 ----------- ---------- ----------- ----------- Income Tax Expense 3,051 4,802 215 1,289 ----------- ---------- ----------- ----------- Reported Net Earnings 6,856 10,005 588 2,630 ----------- ---------- ----------- ----------- Adjusted for non- recurring items Prepayment costs (net of tax) 853 0 853 0 ----------- ---------- ----------- ----------- Net Earnings from Operations $7,709 $10,005 $1,441 $2,630 =========== ========== =========== =========== Earnings Per Share Reported: Basic $0.92 $1.27 $0.09 $0.34 Diluted $0.91 $1.25 $0.09 $0.33 Earnings Per Share Operations: Basic $1.03 $1.27 $0.20 $0.34 Diluted $1.02 $1.25 $0.20 $0.33 Basic Weighted Number of Shares Outstanding 7,491,977 7,908,786 7,355,576 7,764,614 Diluted Weighted Number of Shares Outstanding 7,566,355 8,005,880 7,440,603 7,862,991 Selected Financial Ratios Net Interest Margin 2.34% 2.66% 2.29% 2.53% Reported: Return on Average Equity 7.12% 10.33% 2.52% 10.67% Return on Average Assets 0.65% 0.92% 0.23% 0.97% Operations: Return on Average Equity 7.95% 10.33% 5.93% 10.67% Return on Average Assets 0.72% 0.92% 0.53% 0.97%
-7- Camco Financial Corporation Condensed Consolidated Statements of Financial Condition (In thousands, except for per share data and shares outstanding)
12/31/03 12/31/02 ----------- ----------- Assets - -------------------------------------------- Cash and Cash Equivalents $53,711 $57,022 Investments 113,758 161,489 Loans Held for Sale 5,457 55,493 Loans Receivable 805,266 746,955 Allowance for Loan Loss (5,641) (5,490) ----------- ----------- Loans Receivable, Net 799,625 741,465 Goodwill 2,953 2,953 Other Assets 63,203 64,818 ----------- ----------- Total Assets $1,038,707 $1,083,240 =========== =========== Liabilities - -------------------------------------------- Deposits $671,274 $694,072 Borrowed Funds 262,735 276,276 Other Liabilities 12,155 14,291 ----------- ----------- Total Liabilities 946,164 984,639 Stockholders Equity 92,543 98,601 ----------- ----------- Total Liabilities and Stockholders' Equity $1,038,707 $1,083,240 Stockholders' Equity to Total Assets 8.91% 9.10% Total Shares Outstanding 7,332,422 7,688,885 Book Value Per Share $12.62 $12.82
- --------------------- Contact: Camco Financial Corporation Richard C. Baylor, 740-435-2040 or Mark A. Severson, 740-435-2055 -9- -----END PRIVACY-ENHANCED MESSAGE-----