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 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))

Section 2 — Financial Information

Item 2.02 Results of Operations and Financial Condition.

     On April 23, 2007, Camco Financial Corporation (“Camco”) issued a press release regarding its earnings for the quarter ended March 31, 2007. The press release is attached as Exhibit 99 hereto and is incorporated herein by reference.

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	Press Release of Camco dated April 23, 2007

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 24, 2007

3

EX-99

Exhibit 99

  Contacts:

  Richard C. Baylor, Chairman, CEO

  Phone: 740-435-2040

       Or

  Mark A. Severson, CFO

  Phone: 740-435-2055

Camco Financial Announces First Quarter 2007 Earnings

Cambridge, Ohio (Nasdaq: CAFI) — Camco Financial Corporation (“Camco”) reported net earnings for the quarter ended March 31, 2007 of $1.50 million or $0.20 per basic share as compared with net earnings of $1.68 million or $0.22 per share for the same quarter in 2006 and net earnings of $1.26 million or $0.17 per share for the fourth quarter 2006.

     Camco recently announced its quarterly cash dividend of $0.15. This dividend represents an annualized yield of 4.67% on Camco’s March 31, 2007 quarter-end share price. Also, in the first quarter 2007, Camco purchased 43,500 shares under its 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 50% of our total loan portfolio, up from 46% at March 31, 2006. We have hired new employees in important revenue generating areas such as commercial lending and commercial lending operations staff. Competition for loan volume has been acute, yet we are not willing to sacrifice future quality for current growth and therefore our net loan receivables have not shown growth when comparing the first quarter 2007 with the first quarter 2006. However, we have experienced some promising growth in the first quarter 2007 versus the fourth quarter 2006 in our commercial loan portfolio. On the retail side, we are following through on our commitment to execute our growth strategy by opening two branches since September 2006 in growth markets near Cincinnati and Columbus.”

4

     Mr. Baylor continued, “The decrease in our earnings stems from continued pressure on the net interest margin, which has decreased 12 basis points from last years first quarter. However, we have seen our net interest margin firming since the third quarter 2006, rising from 2.84% to the current 2.94%. We remain committed to growing revenue sources while at the same time keeping a close eye on operating expenses.”

Review of significant areas:

Net Interest Margin:

During the first quarter of 2007 the net interest margin fell to 2.94%, versus 3.06% for the first quarter 2006. The primary reason for this contraction in the net interest margin was the yield on earning assets rising slower than the cost of interest bearing liabilities. The yield on earning assets increased from 5.96% in the first quarter 2006 to 6.45% in the first quarter 2007 or 49 basis points. Conversely, the total cost of interest bearing liabilities increased from 3.17% in the first quarter 2006 to 3.86% in the first quarter of 2007 or 69 basis points.

Non-Interest Income:

For the quarter ended March 31, 2007, non-interest income increased to $1.57 million from $1.31 million in the first quarter 2006. For the first quarter 2007, ATM service fees were up $44,000, or 37% due primarily to increased volume and commercial loan prepayment fees were higher by $36,000. With respect to non-interest income in the first quarter of 2006, management discontinued the accrual of late charges recognized on commercial loans and moved to a method that recognized 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, 2007, operating expenses were $6.56 million compared to $6.26 million for the first quarter 2006. Approximately one-third 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 loan collection staff has also been hired. Expenses related to the disposition of real estate owned increased $85,000. Occupancy and equipment increased $89,000 primarily due to the opening of the Mason, Ohio branch in September 2006, and additional depreciation related to the core processing conversion that occurred in May 2006.

Asset Quality:

Non-performing loans as a percentage of total loans increased from 1.75% at March 31, 2006 to 2.04% at March 31, 2007. The allowance for loan losses as a percentage of loans decreased slightly from 87 basis points at March 31, 2006 to 86 basis points at March 31, 2007. Importantly, it should be noted that non-performing assets decreased from $21.6 million at December 31, 2006 to $20.4 million at March 31, 2007 or 6% and that overall loan delinquency for loans 30 days or more delinquent declined from $38.2 million to $30.7 million or 20%.

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 31 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 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.

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

	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
	3/31/07			12/31/06			9/30/06			6/30/06			3/31/06
Assets
Cash and Cash Equivalents		24,099			26,542			21,459			32,938			29,861
Investments		108,602			110,955			113,625			114,586			109,460
Loans Held for Sale		3,415			3,664			3,423			2,115			3,325
Loans Receivable		838,637			831,722			844,921			852,921			847,426
Allowance for Loan Loss		(7,126	)		(7,144	)		(7,084	)		(7,639	)		(7,321	)
Loans Receivable, Net		831,511			824,578			837,837			845,282			840,105
Goodwill		6,683			6,683			6,683			6,683			6,683
Other Assets		75,080			75,794			74,570			72,069			68,996
Total Assets	$	1,049,390		$	1,048,216		$	1,057,597		$	1,073,673		$	1,058,430
Liabilities
Deposits		685,341			684,782			684,911			681,905			676,376
Borrowed Funds		258,285			257,139			268,935			290,441			280,280
Other Liabilities		14,533			15,203			13,055			11,224			11,543
Total Liabilities		958,159			957,124			966,901			983,570			968,199
Stockholders Equity		91,231			91,092			90,696			90,103			90,231
Total Liabilities and Stockholders’ Equity	$	1,049,390		$	1,048,216		$	1,057,597		$	1,073,673		$	1,058,430
Stockholders’ Equity to Total Assets		8.69	%		8.69	%		8.58	%		8.39	%		8.52	%
Total Shares Outstanding		7,419,546			7,463,056			7,460,813			7,488,813			7,536,713
Book Value Per Share	$	12.30		$	12.21		$	12.16		$	12.03		$	11.97

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
	3/31/07			12/31/06			9/30/06			6/30/06			3/31/06
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Interest Income:
Loans		14,151			14,164			13,860			13,491			13,249
Mortgage-backed securities		560			585			602			608			633
Investment securities		640			603			590			539			480
Interest-bearing deposits and other		838			822			848			825			790
Total Interest Income		16,189			16,174			15,900			15,463			15,152
Interest Expense:
Deposits		6,004			5,972			5,744			5,108			4,424
Borrowings		2,798			2,770			2,904			2,900			2,949
Total Interest Expense		8,802			8,742			8,648			8,008			7,373
Net Interest Income		7,387			7,432			7,252			7,455			7,779
Provision for Losses on Loans		195			360			360			360			360
Net Interest Income After Provision for Loan Losses		7,192			7,072			6,892			7,095			7,419
Noninterest Income
Late charges, rent and other		776			616			642			726			462
Loan servicing fees		352			345			354			353			360
Service charges and other fees on deposits		380			371			325			431			352
Gain on sale of loans		86			60			56			80			99
Mortgage servicing rights		(53	)		(368	)		(113	)		(46	)		(22	)
Gain on sale of investment, mbs & fixed assets		10			(3	)		23			1			—
Gain on sale of real estate acq’d through foreclosure		17			(5	)		(41	)		(80	)		55
Total noninterest income		1,568			1,016			1,246			1,465			1,306
Non interest expense
Employee compensation and benefits		3,345			3,085			3,218			3,016			3,249
Occupancy and equipment		869			797			825			780			780
Data processing		285			302			316			333			393
Advertising		322			316			319			220			303
Franchise taxes		268			268			285			228			246
Other operating		1,474			1,527			1,447			1,366			1,291
Total noninterest expense		6,563			6,295			6,410			5,943			6,262
Net Income — Before Income Tax		2,197			1,793			1,728			2,617			2,463
Provision for income taxes		693			533			608			802			784
Net Earnings from Operations		1,504			1,260			1,120			1,815			1,679
Earnings Per Share Reported:
Basic	$	0.20		$	0.17		$	0.15		$	0.24		$	0.22
Diluted	$	0.20		$	0.17		$	0.15		$	0.24		$	0.22
Basic Weighted Number of Shares Outstanding		7,457,583			7,462,642			7,474,665			7,521,529			7,563,452
Diluted Weighted Number of Shares Outstanding		7,458,931			7,464,547			7,477,519			7,524,787			7,567,170

Camco Financial Corporation
Selected Ratios and Statistics
Periods Ended March 31, 2007 and 2006
(In thousands, except for per share data and shares outstanding)

	3 Months			3 Months
	Ended			Ended
	3/31/07			3/31/06
	(Unaudited)			(Unaudited)
Reported:
Return on Average Equity		6.57	%		7.38	%
Return on Average Assets		0.57	%		0.63	%
Interest Rate Spread		2.58	%		2.79	%
Net Interest Margin		2.94	%		3.06	%
Yield on earning assets		6.45	%		5.96	%
Cost of deposits		3.70	%		2.81	%
Cost of funds		4.28	%		3.92	%
Total cost of interest bearing liabilities		3.86	%		3.17	%
Noninterest expense/average assets		2.50	%		2.35	%
Efficiency Ratio		73.29	%		68.93	%
Non performing assets to total assets		1.94	%		1.55	%
Non performing loans to total net loans including loans held for sale		2.04	%		1.75	%
Allowance for loan losses to total loans		0.86	%		0.87	%

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 2007, December and September 2006
(In thousands, except for per share data and shares outstanding)

Average Table — Quarter Ended

	Mar 31, 2007							Dec 31, 2006							Sept 30, 2006
	Average				Yield/			Average				Yield/			Average				Yield/
	Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate
Interest — Earning Assets:
Loans held for sale		4,230							2,922							2,278
Loans receivable — net		828,196		14,151		6.80	%		829,040		14,164		6.81	%		841,094		13,860		6.57	%
Mortgage-backed securities		52,860		560		4.24	%		55,381		585		4.23	%		57,311		602		4.20	%
Investment securities		58,057		640		4.41	%		56,888		603		4.24	%		56,634		590		4.17	%
Interest-bearing deposits and other		61,312		838		5.47	%		61,293		822		5.36	%		64,387		848		5.27	%
Total interest earning assets		1,004,655		16,189		6.45	%		1,005,524		16,174		6.43	%		1,021,704		15,900		6.22	%
Noninterest-earning assets		45,006							44,082							44,046
Total Assets		1,049,661							1,049,606							1,065,750
Interest-Bearing Liabilities:
Deposits		649,451		6,004		3.70	%		651,506		5,972		3.67	%		656,621		5,744		3.50	%
Advances		261,510		2,798		4.28	%		261,292		2,770		4.24	%		277,325		2,904		4.19	%
Total interest-bearing liabilities		910,961		8,802		3.86	%		912,798		8,742		3.83	%		933,946		8,648		3.70	%
Noninterest-bearing sources:
Noninterest-bearing liabilities		47,198							45,673							41,293
Shareholders’ equity		91,502							91,135							90,511
Total Liabilities and Shareholders’ Equity		1,049,661							1,049,606							1,065,750
Net Interest Income & Margin				7,387		2.94	%				7,432		2.96	%				7,252		2.84	%