Camco Financial Announces Strong Fourth Quarter and Year 2005 Results.CAMBRIDGE, Ohio Cambridge is a city in the U.S. state of Ohio and the county seat of Guernsey CountyGR6. The municipality is located in southeastern Ohio and is in the Appalachian Plateau of the Appalachian Mountains. -- Camco Financial Corporation (Nasdaq:CAFI CAFI Canadian Agriculture and Food International CAFI Conférence des Alpes franco-italiennes (French) CAFI Computer-Aided Fault Isolation CAFI Commanders Annual Facility Inspection ) announced a 32% increase in net earnings for the quarter ended December December: see month. 31, 2005 of $2.47 million or $.32 per basic share as compared with $1.87 million or $.24 per basic share for the same quarter in 2004 which excludes the impact of certain extraordinary items. Camco's reported net earnings for the quarter ended December 31, 2005 were $2.47 million or $.32 per basic share as compared with a reported net earnings loss of $6.57 million or $.89 per basic share for the same quarter in 2004. The reported earnings in the quarter ended December 31, 2004 included extraordinary items such as the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of a significant portion of Federal Home Loan Bank (FHLB FHLB Federal Home Loan Bank ) borrowings amounting to a net loss of $1.63 per share and the sale of two bank branches which amounted to a net gain of $.53 per share. Excluding the 2004 extraordinary items noted above, Camco's net earnings for the year ended December 31, 2005 were $8.77 million or $1.15 per basic share as compared with $5.90 million or $.79 per basic share for 2004, an increase of 49%. For the year ended December 31, 2005 Camco's reported net earnings, including the extraordinary items noted above, were $8.77 million or $1.15 per basic share compared with a net loss of $2.54 million or $.34 per share for the year ended 2004. Camco's President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a C. Baylor Bay·lor , Elgin Born 1934. American basketball player. He was a forward for the Minneapolis and Los Angeles Lakers from 1958 to 1971 and ranks among the all-time National Basketball Association leaders in points and per-game scoring average. commented, "2005 was a good year for Camco Financial Corporation. We increased operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before , strengthened our balance sheet, invested in our banking franchise, and continued to make progress on all aspects of our long term strategic plan. Through these actions we are moving forward on our goal of building a better community bank for our customers, our employees, our communities, and our stockholders. One significant factor behind our solid 2005 performance was our decision in December 2004 to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. $144.1 million in fixed rate borrowings. As well, the resulting reduction in interest rate risk and interest expense significantly benefited our 2005 earnings and will continue to benefit earnings over the next four years. Although this was one factor in the earnings increase in 2005, it was not the only one. Besides lowering our cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. , we also succeeded in adding higher margin commercial and consumer loans to our portfolio. These two factors combined to improve our net interest margin to 3.00% in 2005 from 2.49% in 2004." Review of significant areas: Net Interest Margin - In 2005, management was able to produce significant improvement in the net interest margin. This improvement was the result of Camco's continued emphasis on growth in the commercial, commercial real estate and consumer loan portfolios and effective cost of funds management, emphasizing lower cost, transaction-based deposit accounts as well as the significant restructuring of FHLB borrowings that occurred at the end of 2004. For the 4th quarter 2005, the net interest margin increased to 3.17% from 2.55% for 2004, for the year ended December 31, 2005 the net interest margin increased to 3.00% from 2.49% for calendar year 2004. Non-Interest Income - For the quarter ended December 31, 2005, non-interest income was $1.71 million versus $8.55 million for the same period last year. Excluding the sale of our Ashland-Kentucky banking division as well as facilities in New Philadelphia, Ohio New Philadelphia is a city in Tuscarawas County, Ohio, United States, 71 miles south of Cleveland on the Tuscarawas River. It was first incorporated in 1808. Coal and clay are found in the vicinity. and Cresent Springs, Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. , non-interest income would have been 1.92 million in 2004. The primary reason for this decline in non-interest income was the change year-to-year in the sale of real estate acquired through foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. from a net gain in the 4th quarter 2004 of $123,000 to a net loss in the 4th quarter 2005 of $39,000. Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. - For the quarter ended December 31, 2005, operating expenses were $5.64 million versus $24.43 million for the 4th quarter 2004. Excluding the effect of the restructuring of FHLB borrowings in the 4th quarter of 2004, operating expenses were $5.64 million and $5.55 million in 2005 and 2004 respectively, or an increase of 1.69%. Asset Quality - Non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. as a percentage of loans increased from 1.17% at December 31, 2004 to 1.64% at December 31, 2005. The allowance for loan losses as a percentage of loans has increased from 78 basis points at December 31, 2004 to 82 basis points at December 31, 2005. Management is committed to reducing the level of non-performing loans over the coming months. Although management believes the allowance for loan losses at December 31, 2005 is adequate based upon the available facts and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , 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 To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution and manage it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategic plan. This plan encompasses the diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of the balance sheet primarily through increasing commercial, commercial real estate, and consumer loan portfolios as well as transaction-based deposits. 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 $1.08 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 The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. from 29 offices in 22 communities in Ohio, Kentucky and West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. . 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. , 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 ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. 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.
Camco Financial Corporation
Condensed Consolidated Statements of Financial Condition
(In thousands, except for per share data and Shares Outstanding)
(Unaudited) (Unaudited) (Unaudited) (Unaudited) Audited
12/31/05 9/30/05 6/30/05 3/31/05 12/31/04
--------------------------------------------------------
Assets
------
Cash and Cash
Equivalents 33,085 34,274 36,778 39,795 $42,894
Investments 113,690 113,206 113,517 109,179 108,429
Loans Held for
Sale 1,968 5,317 3,441 4,616 2,837
Loans
Receivable 853,701 856,468 847,731 843,777 840,305
Allowance for
Loan Loss (6,959) (6,642) (6,540) (6,637) (6,476)
-------------------------------------------------------
Loans
Receivable,
Net 846,742 849,826 841,191 837,140 833,829
Goodwill 6,683 6,683 6,683 6,683 6,736
Other Assets 69,080 68,014 67,747 67,221 71,098
-------------------------------------------------------
Total Assets $1,071,248 $1,077,320 $1,069,357 $1,064,634 $1,065,823
=======================================================
Liabilities
-----------
Deposits 660,242 669,908 669,283 674,853 $667,778
Borrowed Funds 307,223 305,211 298,295 289,302 295,310
Other
Liabilities 13,020 11,835 11,123 10,900 13,414
-------------------------------------------------------
Total
Liabilities 980,485 986,954 978,701 975,055 976,502
Stockholders
Equity 90,763 90,366 90,656 89,579 89,321
-------------------------------------------------------
Total
Liabilities
and
Stockholders'
Equity $1,071,248 $1,077,320 $1,069,357 $1,064,634 $1,065,823
=======================================================
Stockholders'
Equity to 8.47% 8.39% 8.48% 8.41% 8.38%
Total Assets
Total Shares
Outstanding 7,578,713 7,621,385 7,643,746 7,678,747 7,663,153
Book Value Per
Share $11.98 $11.86 $11.86 $11.67 $11.66
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
12/31/05 9/30/05 6/30/05 3/31/05 12/31/04
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
-----------------------------------------------------------
Interest
Income:
Loans 13,163 $12,729 $12,311 $11,962 $12,188
Mortgage-
backed
securities 655 679 742 751 785
Investment
securities 466 358 257 185 178
Interest-
bearing
deposits
and other 873 689 651 607 610
-------------------------------------------------------
Total
Interest
Income 15,157 14,455 13,961 13,505 13,761
-------------------------------------------------------
Interest
Expense:
Deposits 4,136 4,009 3,786 3,503 3,723
Borrowings 2,922 2,893 2,646 2,634 3,355
-------------------------------------------------------
Total
Interest
Expense 7,058 6,902 6,432 6,137 7,078
-------------------------------------------------------
Net Interest
Income 8,099 7,553 7,529 7,368 6,683
Provision for
Losses on
Loans 520 360 360 240 855
-------------------------------------------------------
Net Interest
Income After
Provision for
Loan Losses 7,579 7,193 7,169 7,128 5,828
-------------------------------------------------------
Noninterest
Income
Late charges,
rent and
other 550 818 715 745 585
Loan
servicing
fees 363 368 371 378 381
Service
charges and
other fees
on deposits 393 370 386 334 404
Gain on sale
of loans 119 215 179 170 140
Mortgage
servicing
rights 287 (276) (42) 51 269
Gain on sale
of investment,
mbs & fixed
assets 36 66 0 19 6,653
Gain on sale
of real
estate acq'd
through
foreclosure (39) (18) 25 9 123
-------------------------------------------------------
Total
noninterest
income 1,709 1,543 1,634 1,706 8,555
-------------------------------------------------------
Non interest
expense
Employee
compensation
and benefits 2,932 3,008 2,811 2,964 2,655
Occupancy and
equipment 711 780 763 797 821
Data
processing 373 317 347 331 331
Advertising 341 345 303 229 225
Franchise
taxes 50 71 67 79 201
Other
operating 1,237 1,214 1,519 1,165 1,317
FHLB
prepayment
penalty 0 0 0 0 18,879
-------------------------------------------------------
Total
noninterest
expense 5,644 5,735 5,810 5,565 24,429
-------------------------------------------------------
Net Income -
Before Income
Tax 3,644 3,001 2,993 3,269 (10,046)
Provision for
income taxes 1,174 963 953 1,051 (3,476)
-------------------------------------------------------
Reported Net
Income 2,470 2,038 2,040 2,218 (6,570)
-------------------------------------------------------
Adjusted for
non-recurring
items
Sale of
branches 0 0 0 0 (4,024)
FHLB
Prepayment
costs (net
of tax) 0 0 0 0 12,460
-------------------------------------------------------
Net Earnings
from
Operations 2,470 2,038 2,040 2,218 1,866
=======================================================
Earnings Per
Share
Reported:
Basic $0.32 $0.27 $0.27 $0.29 ($0.89)
Diluted $0.32 $0.27 $0.27 $0.29 N/A
Earnings Per
Share
Operations:
Basic $0.32 $0.27 $0.27 $0.29 $0.24
Diluted $0.32 $0.27 $0.27 $0.29 $0.24
Basic Weighted
Number of
Shares
Outstanding 7,610,499 7,632,132 7,660,120 7,677,795 7,645,005
Diluted
Weighted
Number of
Shares
Outstanding 7,614,127 7,638,147 7,681,186 7,711,433 7,684,500
Camco Financial Corporation
Selected Ratios and Statistics
Periods Ended December 31, 2005 and 2004
(In thousands, except for per share data and shares outstanding)
12 Months 12 Months 3 Months 3 Months
Ended Ended Ended Ended
12/31/05 12/31/04 12/31/05 12/31/04
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
-----------------------------------------------
Reported:
Return on Average Equity 9.68% -2.70% 10.86% -6.86%
Return on Average Assets 0.82% -0.24% 0.92% -0.60%
Interest Rate Spread 2.79% 2.26% 2.91% 2.33%
Net Interest Margin 3.00% 2.49% 3.17% 2.55%
Yield on earning assets 5.61% 5.17% 5.92% 5.25%
Cost of deposits 2.41% 2.09% 2.62% 2.16%
Cost of funds 3.73% 4.89% 3.85% 4.81%
Total cost of interest
bearing liabilities 2.83% 2.91% 3.02% 2.92%
Noninterest
expense/average assets 2.13% 3.89% 2.11% 8.83%
Efficiency Ratio 61.26% 111.18% 57.54% 160.32%
Non performing assets to
total assets 1.54% 1.14% 1.54% 1.14%
Non performing loans to
total net loans including
loans held for sale 1.64% 1.17% 1.64% 1.17%
Allowance for loan losses
to total loans 0.82% 0.78% 0.82% 0.78%
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 2005
(In thousands, except for per share data and shares outstanding)
Average Table - Quarter Ended
------------------------ -----------------------
Dec 31, 2005 Sept 30, 2005
------------------------ -----------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
------------------------ -----------------------
Interest - Earning
Assets:
Loans held for sale 3,197 4,547
Loans receivable -
net 846,361 13,163 6.20% 848,600 12,729 5.97%
Mortgage-backed
securities 67,372 655 3.89% 73,290 679 3.71%
Investment
securities 47,013 466 3.96% 39,555 358 3.62%
Interest-bearing
deposits and other 59,556 873 5.86% 60,004 689 4.59%
------------------------ -----------------------
Total interest
earning assets 1,023,499 15,157 5.92% 1,025,996 14,455 5.64%
------------------------ -----------------------
Noninterest-earning
assets 46,927 50,918
---------- ----------
Total Assets 1,070,426 1,076,914
========== ==========
Interest-Bearing
Liabilities:
Deposits 632,190 4,136 2.62% 642,363 4,009 2.50%
Advances 303,310 2,922 3.85% 303,520 2,893 3.81%
------------------------ -----------------------
Total interest-
bearing
liabilities 935,500 7,058 3.02% 945,883 6,902 2.92%
------------------------ -----------------------
Noninterest-bearing
sources:
Noninterest-bearing
liabilities 43,910 40,069
Shareholders' equity 91,016 90,962
---------- ----------
Total Liabilities and
Shareholders' Equity 1,070,426 1,076,914
========== ==========
-------------- --------------
Net Interest Income &
Margin 8,099 3.17% 7,553 2.94%
============== ==============
Camco Financial Corporation
Averages for Quarters Ended
December, September and June 2005
(In thousands, except for per share data and shares outstanding)
Average Table - Quarter Ended
--------------------------------
Jun 30, 2005
--------------------------------
Average Yield/
Balance Interest Rate
--------------------------------
Interest - Earning Assets:
Loans held for sale 4,078
Loans receivable - net 839,894 12,311 5.83%
Mortgage-backed securities 78,766 742 3.77%
Investment securities 30,723 257 3.35%
Interest-bearing deposits and other 59,353 651 4.39%
--------------------------------
Total interest earning assets 1,012,814 13,961 5.51%
--------------------------------
Noninterest-earning assets 52,489
------------
Total Assets 1,065,303
============
Interest-Bearing Liabilities:
Deposits 646,923 3,786 2.34%
Advances 289,058 2,646 3.66%
--------------------------------
Total interest-bearing liabilities 935,981 6,432 2.75%
--------------------------------
Noninterest-bearing sources:
Noninterest-bearing liabilities 39,123
Shareholders' equity 90,199
------------
Total Liabilities and Shareholders'
Equity 1,065,303
============
--------------------
Net Interest Income & Margin 7,529 2.97%
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