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): January 23, 2007

CAMCO FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

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

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))

TABLE OF CONTENTS

EX-99

Section 2 — Financial Information

Item 2.02 Results of Operations and Financial Condition.

     On January 26, 2007, Camco Financial Corporation (“Camco”) issued a press release regarding its earnings for the year ended December 31, 2006. The press release is attached as Exhibit 99 hereto and is incorporated herein by reference.

Section 5 — Corporate Governance and Management

Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.

     On January 23, 2007, the Board of Directors of Camco accepted the resignation of Samuel W. Speck as a director, effective at the close of business on January 23, 2007. Mr. Speck tendered his resignation because he will reach Camco’s mandatory retirement age of 70 prior to the next Board meeting.

     Coinciding with the retirement of Mr. Speck, the Board of Directors reduced the number of members of the Board from eleven to ten, eliminating the vacancy created by Mr. Speck’s retirement.

Section 9 — Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(a)	Financial statements of businesses acquired.
	Not applicable.
(b)	Pro forma financial information.
	Not applicable.
(c)	Shell company transactions.
	Not applicable.
(d)	Exhibits.

Exhibit No.	Description
99	Press Release of Camco dated January 26, 2007

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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
Date: January 26, 2007		Chief Financial Officer

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EX-99

EXHIBIT 99

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

Camco Financial Announces Fourth Quarter and Year 2006 Results

Cambridge, Ohio (Nasdaq: CAFI) – Camco Financial Corporation announced net earnings for the quarter ended December 31, 2006 of $1.26 million or $.17 per basic share as compared with $2.47 million or $.32 per basic share for the same quarter in 2005. Camco’s net earnings for the year ended December 31, 2006 were $5.87 million or $.78 per basic share as compared with $8.77 million or $1.15 per basic share for 2005.

Camco’s Chairman, President & CEO, Richard C. Baylor commented, “We continued to make progress last year on our strategy to position Camco Financial and Advantage Bank for higher growth and profitability. However, a weak regional economy and difficult interest-rate environment impeded our ability to grow assets and earnings as we planned. We remain focused on achieving our long-term goals and on continuing to deliver outstanding customer service as we build a relationship-driven community bank. “

Review of significant areas:

Net Interest Margin – In 2006, management was able to minimize the decrease in the net interest margin. Camco continues to emphasize growth in the commercial, commercial real estate and consumer loan portfolios. Effective cost of funds management occurred in 2006 with emphasis on lower cost, transaction-based deposit accounts. For the 4th quarter 2006, the net interest margin decreased to

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2.96% from 3.17% for the 4th quarter 2005. For the year ended December 31, 2006 the net interest margin decreased to 2.94% from 3.00% for calendar year 2005.

Non-Interest Income – For the quarter ended December 31, 2006, non-interest income was $1.02 million versus $1.71 million for the same period last year. The primary reason for this decline in non-interest income from the 4th quarter 2005 was a decrease in the calculated value of mortgage servicing rights of $655,000 and a decrease of $59,000 in the gain on sale of loans.

Operating Expenses – For the quarter ended December 31, 2006, operating expenses were $6.30 million versus $5.64 million for the 4th quarter 2005, or an increase of 11.53%. One third of this increase resulted from an increase in franchise taxes. The increase in franchise taxes was due to incurring a normal level of expense in the 4th quarter 2006 after realizing a one-time savings in 2005 from the acquisition of London Financial Corporation in August 2004.

Asset Quality – Non-performing loans as a percentage of loans increased from 1.64% at December 31, 2005 to 2.13% at December 31, 2006. The allowance for loan losses as a percentage of loans has increased from 82 basis points at December 31, 2005 to 87 basis points at December 31, 2006. Management is committed to reducing the level of non-performing loans. Although management believes the allowance for loan losses at December 31, 2006 is adequate based upon the available facts and circumstances, there can be no assurance that additions to such allowance will not be necessary in future periods, which could adversely affect Camco’s results of operations.

Strategic Vision – Camco continues to actively execute and manage its long-term strategic plan. This plan encompasses the diversification of the balance sheet

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primarily through increasing commercial, commercial real estate, and consumer loan portfolios as well as checking and money market deposit accounts. Critical to this strategy is the growth of the balance sheet and the corresponding increase in net interest margin. Complementary 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 for Advantage Bank, is a $1.05 billion multi-state community bank holding company headquartered in Cambridge, Ohio. Advantage Bank and its affiliates offer community banking that includes commercial, business and consumer financial services from 30 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

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

	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
	12/31/06			9/30/06			6/30/06			3/31/06			12/31/05
Assets
Cash and Cash Equivalents		26,542			21,459			32,938			29,861			33,085
Investments		110,954			113,625			114,586			109,460			113,690
Loans Held for Sale		3,664			3,423			2,115			3,325			1,968
Loans Receivable		831,722			844,921			852,921			847,426			853,701
Allowance for Loan Loss		(7,144	)		(7,084	)		(7,639	)		(7,321	)		(6,959	)
Loans Receivable, Net		824,578			837,837			845,282			840,105			846,742
Goodwill		6,683			6,683			6,683			6,683			6,683
Other Assets		75,211			74,570			72,069			68,996			69,080
Total Assets	$	1,047,632		$	1,057,597		$	1,073,673		$	1,058,430		$	1,071,248
Liabilities
Deposits		684,782			684,911			681,905			676,376			660,242
Borrowed Funds		257,139			268,935			290,441			280,280			307,223
Other Liabilities		14,619			13,055			11,224			11,543			13,020
Total Liabilities		956,540			966,901			983,570			968,199			980,485
Stockholders Equity		91,092			90,696			90,103			90,231			90,763
Total Liabilities and Stockholders’ Equity	$	1,047,632		$	1,057,597		$	1,073,673		$	1,058,430		$	1,071,248
Stockholders’ Equity to Total Assets		8.70	%		8.58	%		8.39	%		8.52	%		8.47	%
Total Shares Outstanding		7,463,056			7,460,813			7,488,813			7,536,713			7,578,713
Book Value Per Share	$	12.21		$	12.16		$	12.03		$	11.97		$	11.98

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
	12/31/06			9/30/06			6/30/06			3/31/06			12/31/05
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Interest Income:
Loans		14,164			13,860			13,491			13,249			13,163
Mortgage-backed securities		585			602			608			633			655
Investment securities		603			590			539			480			466
Interest-bearing deposits and other		822			848			825			790			873
Total Interest Income		16,174			15,900			15,463			15,152			15,157
Interest Expense:
Deposits		5,972			5,744			5,108			4,424			4,136
Borrowings		2,770			2,904			2,900			2,949			2,922
Total Interest Expense		8,742			8,648			8,008			7,373			7,058
Net Interest Income		7,432			7,252			7,455			7,779			8,099
Provision for Losses on Loans		360			360			360			360			520
Net Interest Income After Provision for Loan Losses		7,072			6,892			7,095			7,419			7,579
Noninterest Income
Late charges, rent and other		616			642			726			462			550
Loan servicing fees		345			354			353			360			363
Service charges and other fees on deposits		371			325			431			352			393
Gain on sale of loans		60			56			80			99			119
Mortgage servicing rights		(368	)		(113	)		(46	)		(22	)		287
Gain on sale of investment, mbs & fixed assets		(3	)		23			1			—			36
Gain on sale of real estate acq’d through foreclosure		(5	)		(41	)		(80	)		55			(39	)
Total noninterest income		1,016			1,246			1,465			1,306			1,709
Non interest expense
Employee compensation and benefits		3,085			3,218			3,016			3,249			2,932
Occupancy and equipment		797			825			780			780			711
Data processing		302			316			333			393			373
Advertising		316			319			220			303			341
Franchise taxes		268			285			228			246			50
Other operating		1,527			1,447			1,366			1,291			1,237
Total noninterest expense		6,295			6,410			5,943			6,262			5,644
Net Income — Before Income Tax		1,793			1,728			2,617			2,463			3,644
Provision for income taxes		533			608			802			784			1,174
Net Earnings from Operations		1,260			1,120			1,815			1,679			2,470
Earnings Per Share Reported:
Basic	$	0.17		$	0.15		$	0.24		$	0.22		$	0.32
Diluted	$	0.17		$	0.15		$	0.24		$	0.22		$	0.32
Basic Weighted Number of Shares Outstanding		7,462,642			7,474,665			7,521,529			7,563,452			7,610,499
Diluted Weighted Number of Shares Outstanding		7,464,547			7,477,519			7,524,787			7,567,170			7,614,127

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

	12 Months			12 Months			3 Months			3 Months
	Ended			Ended			Ended			Ended
	12/31/06			12/31/05			12/31/06			12/31/05
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Reported:
Return on Average Equity		6.46	%		9.68	%		5.53	%		10.86	%
Return on Average Assets		0.55	%		0.82	%		0.48	%		0.92	%
Interest Rate Spread		2.64	%		2.79	%		2.60	%		2.91	%
Net Interest Margin		2.94	%		3.00	%		2.96	%		3.17	%
Yield on earning assets		6.16	%		5.61	%		6.43	%		5.92	%
Cost of deposits		3.29	%		2.41	%		3.67	%		2.62	%
Cost of funds		4.08	%		3.73	%		4.24	%		3.85	%
Total cost of interest bearing liabilities		3.53	%		2.83	%		3.83	%		3.02	%
Noninterest expense/average assets		2.34	%		2.13	%		2.40	%		2.11	%
Efficiency Ratio		71.27	%		61.26	%		74.51	%		57.54	%
Non performing assets to total assets		2.06	%		1.54	%		2.06	%		1.54	%
Non performing loans to total net loans including loans held for sale		2.13	%		1.64	%		2.13	%		1.64	%
Allowance for loan losses to total loans		0.87	%		0.82	%		0.87	%		0.82	%

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

December, September, and June 2006

(In thousands, except for per share data and shares outstanding)

	Average Table — Quarter Ended
	Dec 31, 2006							Sept 30, 2006							Jun 30, 2006
	Average				Yield/			Average				Yield/			Average				Yield/
	Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate
Interest — Earning Assets:
Loans held for sale		2,922							2,278							2,502
Loans receivable — net		829,040		14,164		6.81	%		841,094		13,860		6.57	%		844,175		13,491		6.37	%
Mortgage-backed securities		55,381		585		4.23	%		57,311		602		4.20	%		59,196		608		4.11	%
Investment securities		56,888		603		4.24	%		56,634		590		4.17	%		53,131		539		4.06	%
Interest-bearing deposits and other		61,293		822		5.36	%		64,387		848		5.27	%		64,911		825		5.08	%
Total interest earning assets		1,005,524		16,174		6.43	%		1,021,704		15,900		6.22	%		1,023,915		15,463		6.04	%
Noninterest-earning assets		44,082							44,046							44,369
Total Assets		1,049,606							1,065,750							1,068,284
Interest-Bearing Liabilities:
Deposits		651,506		5,972		3.67	%		656,621		5,744		3.50	%		650,664		5,108		3.14	%
Advances		261,292		2,770		4.24	%		277,325		2,904		4.19	%		287,924		2,900		4.03	%
Total interest-bearing liabilities		912,798		8,742		3.83	%		933,946		8,648		3.70	%		938,588		8,008		3.41	%
Noninterest-bearing sources:
Noninterest-bearing liabilities		45,673							41,293							39,190
Shareholders’ equity		91,135							90,511							90,506
Total Liabilities and Shareholders’ Equity		1,049,606							1,065,750							1,068,284
Net Interest Income & Margin				7,432		2.96	%				7,252		2.84	%				7,455		2.91	%