EX-99 2 l15178aexv99.txt EXHIBIT 99 [LOGO] CAMCO FINANCIAL CORPORATION 6901 Glenn Highway Cambridge, OH 43725-9757 Phone: 740-435-2020 Fax: 740-432-2743 [Private Fax] EXHIBIT 99 CONTACTS: RICHARD C. BAYLOR, CEO PHONE: 740-435-2040 OR MARK A. SEVERSON, CFO [ ] PHONE: 740-435-2055 NEWS RELEASE RELEASE DATE: JULY 22, 2005 RELEASE TIME: 4:00 P.M. CAMCO FINANCIAL ANNOUNCES STRONG SECOND QUARTER 2005 EARNINGS GROWTH CAMBRIDGE, OHIO (NASDAQ: CAFI) - Camco Financial Corporation (Camco) reported net earnings for the quarter ended June 30, 2005 of $2.04 million or $.27 per share as compared with net earnings of $1.53 million or $.21 per share for the same quarter in 2004, an increase of 29%. For the 6 months ended June 30, 2005 Camco reported net earnings of $4.26 million compared to $2.57 million of net earnings reported for the same 6 month period in 2004. Basic earnings per share for the 6 months ended June 30, 2005 were $.56 compared to $.35 for the same 6 month period in 2004, an increase of 60%. NASDAQ: CAFI - EMAIL: camco@camco.cc - www.camcofinancial.com Camco recently announced a quarterly dividend of $.145 which was payable July 15, 2005. This dividend represents an annualized yield of 4.26% on Camco's June 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 second quarter commercial and consumer loans represented 44% of our loan portfolio, versus 36% one year ago. We are encouraged to see our annualized return on average equity for the six months ended June 30, 2005 at 9.45% which is in excess of the average of all publicly traded Ohio banks." Mr. Baylor continued, "For the six months ended June 30, 2005 our net interest margin increased to 2.95% from 2.47% compared to the six months ended June 30, 2004. The average yield on our earning assets continues to increase as we execute our strategic plan to shift the composition of our loan portfolio. Overall, the yield on our interest earning assets has increased 30 basis points from last year's second quarter, and the cost of interest bearing liabilities has decreased 22 basis points. We continue to focus on including higher margin producing 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." NASDAQ: CAFI - EMAIL: camco@camco.cc - www.camcofinancial.com 5 REVIEW OF SIGNIFICANT AREAS: NET INTEREST MARGIN: During the second quarter of 2005, as short-term interest rates continued rising, the net interest margin improved to 2.97% in the second quarter 2005 from 2.93% in the first quarter of 2005. 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 6 months ended June 30, 2005 total non-interest income increased 3.1% to $3.34 million from $3.24 million for the same period last year. Core non-interest income, which is net of gain on sale of assets and mortgage servicing rights, increased 12.5% to $2.93 million from $2.60 million. Of this increase, $150,000 was due to "Extended Overdraft" fee income, which did not exist in the second quarter of 2004. For the six months ended June 30, 2005, $33.2 million of loans were sold with a total gain of $349,000 as compared to $57.7 million sold in the second quarter of 2004 for a gain of $490,000. Although less volume overall was originated and sold, the profit margin increased on the sales from .85% to 1.05%. The amount of loans sold in the first six months of 2005 was 57.5% of the prior year's production due to rising interest rates, and a higher percentage of adjustable rate loans being originated and retained in the bank's portfolio. Mortgage servicing rights had a positive impact in the six months ended June 30, 2005 of $9,000 versus the six months ended June 30, 2004, which had a negative adjustment of $73,000. Even though loan sales were down 42.5% to $33.2 million NASDAQ: CAFI - EMAIL: camco@camco.cc - www.camcofinancial.com 6 versus $57.7 million, the prepayment on the portfolio slowed. The overall value of mortgage servicing rights increased to 1.26% from 1.15% as a percent of loans serviced, primarily due to a lower risk of prepayment resulting from increasing interest rates. OPERATING EXPENSES: For the six months ended June 30, 2005, operating expenses were $11.38 million compared to $11.36 million for the comparable period in 2004, or an increase of .1%. As a percentage of average assets, operating expenses decreased slightly to 2.14% from 2.17%. ASSET QUALITY: Non-performing loans as a percentage of loans decreased 20% from 1.39% at March 31, 2005 to 1.11% at June 30, 2005. The allowance for loan losses as a percentage of loans decreased slightly from 79 basis points at March 31, 2005 to 78 basis points at June 30, 2005. At June 30, 2005, total non-performing loans were $9.4 million, of which approximately 52% were single family residential loans. 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, with our newest banking center in Vienna, West Va., opening in July 2005, representing that effort. NASDAQ: CAFI - EMAIL: camco@camco.cc - www.camcofinancial.com 7 Camco Financial Corporation, holding company for Advantage Bank, is a multi-state financial holding company headquartered in Cambridge, Ohio with assets of $1.07 billion. Advantage Bank and its affiliates offer community banking, mortgage banking, internet banking and title services from 31 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. NASDAQ: CAFI - EMAIL: camco@camco.cc - www.camcofinancial.com 8 CAMCO FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (IN THOUSANDS, EXCEPT FOR PER SHARE DATA AND SHARES OUTSTANDING)
(UNAUDITED) (UNAUDITED) AUDITED (UNAUDITED) (UNAUDITED) 6/30/05 3/31/05 12/31/04 9/30/04 6/30/04 ----------- ----------- ---------- ----------- ----------- ASSETS Cash and Cash Equivalents 36,778 39,795 $ 42,894 $ 45,291 $ 38,192 Investments 113,517 109,179 108,429 117,370 124,694 Loans Held for Sale 3,441 4,616 2,837 4,386 4,805 Loans Receivable 847,731 843,777 840,305 898,355 838,699 Allowance for Loan Loss (6,540) (6,637) (6,476) (6,398) (5,528) ----------- ----------- ---------- ----------- ----------- Loans Receivable, Net 841,191 837,140 833,829 891,957 833,171 Goodwill 6,683 6,683 6,736 7,023 2,953 Other Assets 67,747 67,221 71,098 68,078 64,902 ----------- ----------- ---------- ----------- ----------- TOTAL ASSETS $ 1,069,357 $ 1,064,634 $1,065,823 $ 1,134,105 $ 1,068,717 =========== =========== ========== =========== =========== LIABILITIES Deposits 669,283 674,853 $ 667,778 $ 728,918 $ 677,567 Borrowed Funds 298,295 289,302 295,310 291,719 289,712 Other Liabilities 11,123 10,900 13,414 16,441 9,715 ----------- ----------- ---------- ----------- ----------- TOTAL LIABILITIES 978,701 975,055 976,502 1,037,078 976,994 STOCKHOLDERS EQUITY 90,656 89,579 89,321 97,027 91,723 ----------- ----------- ---------- ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,069,357 $ 1,064,634 $1,065,823 $ 1,134,105 $ 1,068,717 =========== =========== ========== =========== =========== STOCKHOLDERS' EQUITY TO 8.48% 8.41% 8.38% 8.56% 8.58% TOTAL ASSETS TOTAL SHARES OUTSTANDING 7,643,746 7,678,747 7,663,153 7,640,505 7,358,888 BOOK VALUE PER SHARE $ 11.86 $ 11.67 $ 11.66 $ 12.70 $ 12.46
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 6/30/05 3/31/05 12/31/04 9/30/04 6/30/04 (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) ----------- ----------- ----------- ----------- ----------- INTEREST INCOME: LOANS $ 12,311 $ 11,962 $ 12,188 $ 11,860 $ 11,469 MORTGAGE-BACKED SECURITIES 742 751 785 833 791 INVESTMENT SECURITIES 257 185 178 209 203 INTEREST-BEARING DEPOSITS AND OTHER 651 607 610 571 522 ----------- ----------- ----------- ----------- ----------- TOTAL INTEREST INCOME 13,961 13,505 13,761 13,473 12,985 ----------- ----------- ----------- ----------- ----------- INTEREST EXPENSE: DEPOSITS 3,786 3,503 3,723 3,570 3,303 BORROWINGS 2,646 2,634 3,355 3,497 3,406 ----------- ----------- ----------- ----------- ----------- TOTAL INTEREST EXPENSE 6,432 6,137 7,078 7,067 6,709 ----------- ----------- ----------- ----------- ----------- NET INTEREST INCOME 7,529 7,368 6,683 6,406 6,276 PROVISION FOR LOSSES ON LOANS 360 240 855 255 255 ----------- ----------- ----------- ----------- ----------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 7,169 7,128 5,828 6,151 6,021 ----------- ----------- ----------- ----------- ----------- NONINTEREST INCOME LATE CHARGES, RENT AND OTHER 715 745 585 623 600 LOAN SERVICING FEES 371 378 381 373 379 SERVICE CHARGES AND OTHER FEES ON DEPOSITS 386 334 404 407 327 GAIN ON SALE OF LOANS 179 170 140 189 214 VALUATION OF MORTGAGE SERVICING RIGHTS - NET (42) 51 269 206 29 GAIN ON SALE OF INVESTMENT, MBS & FIXED ASSETS 0 19 6,653 10 23 GAIN ON SALE OF REAL ESTATE ACQ'D THROUGH FORECLOSURE 25 9 123 106 131 ----------- ----------- ----------- ----------- ----------- TOTAL NONINTEREST INCOME 1,634 1,706 8,555 1,914 1,703 ----------- ----------- ----------- ----------- ----------- NON INTEREST EXPENSE EMPLOYEE COMPENSATION AND BENEFITS 2,811 2,964 2,655 2,763 2,672 OCCUPANCY AND EQUIPMENT 763 797 821 867 828 DATA PROCESSING 347 331 331 320 325 ADVERTISING 303 229 225 387 181 FRANCHISE TAXES 67 79 201 283 294 OTHER OPERATING 1,519 1,165 1,317 1,307 1,194 FHLB PREPAYMENT PENALTY (1) 0 0 18,879 0 0 ----------- ----------- ----------- ----------- ----------- TOTAL NONINTEREST EXPENSE 5,810 5,565 24,429 5,927 5,494 ----------- ----------- ----------- ----------- ----------- NET INCOME - BEFORE INCOME TAX 2,993 3,269 (10,046) 2,138 2,230 PROVISION FOR INCOME TAXES 953 1,051 (3,476) 670 698 ----------- ----------- ----------- ----------- ----------- REPORTED NET INCOME 2,040 2,218 (6,570) 1,468 1,532 ----------- ----------- ----------- ----------- ----------- ADJUSTED FOR NON-RECURRING ITEMS SALE OF BRANCHES 0 0 (4,024) FHLB PREPAYMENT COSTS (NET OF TAX) 0 0 12,460 0 0 - - ------ - - ----------- ----------- ----------- ----------- ----------- NET EARNINGS FROM OPERATIONS 2,040 2,218 1,866 1,468 1,532 =========== =========== =========== =========== =========== EARNINGS PER SHARE REPORTED: BASIC $ 0.27 $ 0.29 ($0.89) $ 0.20 $ 0.21 DILUTED $ 0.27 $ 0.29 N/A $ 0.19 $ 0.21 EARNINGS PER SHARE OPERATIONS: BASIC $ 0.27 $ 0.29 $ 0.24 $ 0.20 $ 0.21 DILUTED $ 0.27 $ 0.29 $ 0.24 $ 0.19 $ 0.21 BASIC WEIGHTED NUMBER OF SHARES OUTSTANDING 7,660,120 7,677,795 7,645,005 7,513,890 7,357,635 DILUTED WEIGHTED NUMBER OF SHARES OUTSTANDING 7,681,186 7,711,433 7,684,500 7,559,916 7,403,929
CAMCO FINANCIAL CORPORATION SELECTED RATIOS AND STATISTICS PERIODS ENDED JUNE 30, 2005 AND 2004 (IN THOUSANDS, EXCEPT FOR PER SHARE DATA AND SHARES OUTSTANDING)
6 MONTHS 6 MONTHS 3 MONTHS 3 MONTHS ENDED ENDED ENDED ENDED 6/30/05 6/30/04 6/30/05 6/30/04 (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) ----------- ----------- ----------- ----------- REPORTED: RETURN ON AVERAGE EQUITY 9.45% 5.52% 9.05% 6.59% RETURN ON AVERAGE ASSETS 0.80% 0.49% 0.77% 0.58% INTEREST RATE SPREAD 2.75% 2.23% 2.76% 2.24% NET INTEREST MARGIN 2.95% 2.47% 2.97% 2.47% YIELD ON EARNING ASSETS 5.44% 5.14% 5.51% 5.11% COST OF DEPOSITS 2.26% 2.05% 2.34% 2.03% COST OF FUNDS 3.62% 4.93% 3.66% 4.81% TOTAL COST OF INTEREST BEARING LIABILITIES 2.69% 2.91% 2.75% 2.87% NONINTEREST EXPENSE/AVERAGE ASSETS 2.14% 2.17% 2.18% 2.07% EFFICIENCY RATIO 62.37% 72.91% 63.41% 68.86% NON PERFORMING ASSETS TO TOTAL ASSETS 1.09% 1.32% 1.20% 1.32% NON PERFORMING LOANS TO TOTAL NET LOANS INCLUDING LOANS HELD FOR SALE 1.11% 1.39% 1.27% 1.39% ALLOWANCE FOR LOAN LOSSES TO TOTAL LOANS 0.78% 0.66% 0.78% 0.66%
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 JUNE 2005, MARCH 2005 AND DECEMBER 2004 (IN THOUSANDS, EXCEPT FOR PER SHARE DATA AND SHARES OUTSTANDING)
AVERAGE TABLE - QUARTER ENDED ------------------------------------------------------------------------------------- JUN 30, 2005 MAR 31, 2005 DEC 31, 2004 --------------------------- --------------------------- --------------------------- Average Yield/ Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Balance Interest Rate --------- -------- ------ --------- -------- ------ --------- -------- ------ INTEREST - EARNING ASSETS: Loans held for sale 4,078 4,006 4,326 Loans receivable - net 839,894 12,311 5.83% 836,569 11,962 5.69% 869,716 12,188 5.58% Mortgage-backed securities 78,766 742 3.77% 82,381 751 3.65% 87,825 785 3.58% Investment securities 30,723 257 3.35% 24,369 185 3.04% 24,655 178 2.89% Interest-bearing deposits and other 59,353 651 4.39% 60,050 607 4.04% 61,389 610 3.97% --------- ------ ---- --------- ------ ---- --------- ------ ---- Total interest earning assets 1,012,814 13,961 5.51% 1,007,375 13,505 5.36% 1,047,911 13,761 5.25% --------- ------ ---- --------- ------ ---- --------- ------ ---- Noninterest-earning assets 52,489 56,173 55,825 --------- --------- --------- TOTAL ASSETS 1,065,303 1,063,548 1,103,736 ========= ========= ========= INTEREST-BEARING LIABILITIES: Deposits 646,923 3,786 2.34% 642,359 3,503 2.18% 690,919 3,723 2.16% Advances 289,058 2,646 3.66% 293,551 2,634 3.59% 278,873 3,355 4.81% --------- ------ ---- --------- ------ ---- --------- ------ ---- Total interest-bearing liabilities 935,981 6,432 2.75% 935,910 6,137 2.62% 969,792 7,078 2.92% --------- ------ ---- --------- ------ ---- --------- ------ ---- Noninterest-bearing sources: Noninterest-bearing liabilities 39,123 37,710 38,163 Shareholders' equity 90,199 89,928 95,781 --------- --------- --------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,065,303 1,063,548 1,103,736 ========= ========= ========= ----- ---- ----- ---- ----- ---- NET INTEREST INCOME & MARGIN 7,529 2.97% 7,368 2.93% 6,683 2.55% ===== ==== ===== ==== ===== ====