Camco Financial Announces Strong Third Quarter 2005 Earnings Growth.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. -- (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 ) - Camco Financial Corporation (Camco) reported net earnings for the quarter ended September September: see month. 30, 2005 of $2.04 million or $.27 per share as compared with net earnings of $1.47 million or $.20 per share for the same quarter in 2004, an increase of 38.8%. For the nine months ended September 30, 2005 Camco reported net earnings of $6.30 million compared to $4.03 million of net earnings reported for the same nine month period in 2004, an increase of 56.1%. Basic earnings per share for the nine months ended September 30, 2005 were $.82 compared to $.54 for the same nine month period in 2004. Camco recently announced a quarterly cash dividend of $.145 which was payable October October: see month. 21, 2005. This dividend represents an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. yield of 4.10% on Camco's September 30th quarter-end market value. 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, "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 third quarter, commercial and consumer loans represented 45% of our loan portfolio, versus 39% one year ago. We are encouraged to see our annualized return on average equity for the nine months ended September 30, 2005 at 9.28% which is above of the average of all publicly traded Ohio banks." In addition our return on average tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. equity, which excludes Goodwill, was 9.96% for the same nine month period. Mr. Baylor continued, "The average yield on our earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin continues to increase as we execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution our strategic plan to shift the composition of our loan portfolio. For the third quarter 2005, the yield on our interest earning assets increased 52 basis points from last year's third quarter, and the cost of interest bearing liabilities has only increased 2 basis points. That the cost of our liabilities only increased two basis points, demonstrates the value of the fourth quarter of 2004 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 the Federal Home Loan Bank borrowings. We continue to focus on producing higher margin 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." Review of Significant Areas: Net Interest Margin: During the third quarter of 2005, as short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. continued rising, the net interest margin improved to 2.94% in the third quarter 2005 from 2.44% in the third quarter of 2004. 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 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. . Non-Interest Income: For the quarter ended September 30, 2005 total non-interest income decreased 19.4% to $1.54 million from $1.91 million for the same period last year. Core non-interest income, which is net of mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. rights, increased 6.5% to $1.82 million from $1.71 million. This increase was primarily due to an increase in commercial loan prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. fees of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $95,000 and an increase of $25,000 from "Extended Overdraft A check that is drawn on an account containing less money than the amount stated on the check. The term overdraft is also used in reference to the condition that exists when vouchers " fee income, which was formally introduced in July July: see month. of 2004. For the quarter ended September 30, 2005, $16.9 million of loans were sold with a total gain of $215,000 as compared to $19.6 million sold in the third quarter of 2004 for a gain of $189,000. Although less volume overall was originated and sold, the profit margin increased on the sales from .96% to 1.28%. The amount of fixed rate loans sold in the third quarter of 2005 decreased due to rising interest rates with a higher percentage of adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. loans being originated and retained in the bank's portfolio. Mortgage servicing rights had a net reduction in the quarter ended September 30, 2005 of $276,000 versus the quarter ended September 30, 2004, which had a net increase of $206,000. Loan sales were down 14.0% to $16.9 million versus $19.6 million and the overall value of mortgage servicing rights also decreased from 1.23% to 1.22% as a percent of loans serviced. 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 September 30, 2005, operating expenses were $5.73 million compared to $5.93 million for the comparable period in 2004, or a decrease of 3.2%. As a percentage of average assets, operating expenses decreased slightly to 2.13% from 2.15%. The efficiency ratio improved to 62.60% in the third quarter 2005 from 71.24% for the same quarter in 2004. This improvement was accomplished through a 9.3% increase in total revenue combined with the 3.2% decrease in operating expenses. 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 1.13% at June June: see month. 30, 2005 to 1.52% at September 30, 2005. The allowance for loan losses as a percentage of loans was 78 basis points at September 30, 2005. At September 30, 2005, total non-performing loans were $13.03 million, of which approximately 54.5% were single family residential loans. The Company has experienced an increase in loans sixty days or more delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. during the period from June 30, 2005 to September 30, 2005 of 1.22% to 1.59% respectively. Strategic Vision: Camco continues to execute and manage its 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 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. The newest banking center in Vienna Vienna, city and province, Austria Vienna (vēĕn`ə), Ger. Wien, city and province (1991 pop. 1,539,848), 160 sq mi (414 sq km), capital and largest city of Austria and administrative seat of Lower Austria, NE Austria, on , West Va. opened in July 2005 and another new branch planned for the high growth northern Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. suburb suburb, a community in an outlying section of a city or, more commonly, a nearby, politically separate municipality with social and economic ties to the central city. In the 20th cent. of Tylersville, Ohio Tylersville (also known as Pug Muncy) is an unincorporated community in central West Chester Township, Butler County, Ohio, United States. It was laid out in 1842 by Daniel Pocock and named for the President of the United States at the time, John Tyler. should open in the second quarter of 2006. 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. , internet banking and title insurance services from 29 offices in 22 communities in Ohio, 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. 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 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 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) Audited (Unaudited)
9/30/05 6/30/05 3/31/05 12/31/04 9/30/04
----------- ----------- ----------- ---------- ----------
Assets
-------
Cash and Cash
Equivalents 34,274 36,778 39,795 $42,894 $45,291
Investments 113,206 113,517 109,179 108,429 117,370
Loans Held
for Sale 5,317 3,441 4,616 2,837 4,386
Loans
Receivable 856,468 847,731 843,777 840,305 898,355
Allowance for
Loan Loss (6,642) (6,540) (6,637) (6,476) (6,398)
----------- ----------- ----------- ---------- ----------
Loans
Receivable,
Net 849,826 841,191 837,140 833,829 891,957
Goodwill 6,683 6,683 6,683 6,736 7,023
Other Assets 68,014 67,747 67,221 71,098 68,078
----------- ----------- ----------- ---------- ----------
Total Assets $1,077,320 $1,069,357 $1,064,634 $1,065,823 $1,134,105
=========== =========== =========== ========== ==========
Liabilities
------------
Deposits 669,908 669,283 674,853 $667,778 $728,918
Borrowed
Funds 305,211 298,295 289,302 295,310 291,719
Other
Liabilities 11,835 11,123 10,900 13,414 16,441
----------- ----------- ----------- ---------- ----------
Total
Liabilities 986,954 978,701 975,055 976,502 1,037,078
Stockholders
Equity 90,366 90,656 89,579 89,321 97,027
----------- ----------- ----------- ---------- ----------
Total
Liabilities
and
Stockholders'
Equity $1,077,320 $1,069,357 $1,064,634 $1,065,823 $1,134,105
=========== =========== =========== ========== ==========
Stockholders'
Equity to
Total Assets 8.39% 8.48% 8.41% 8.38% 8.56%
Total Shares
Outstanding 7,621,385 7,643,746 7,678,747 7,663,153 7,640,505
Book Value
Per Share $11.86 $11.86 $11.67 $11.66 $12.70
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
9/30/05 6/30/05 3/31/05 12/31/04 9/30/04
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
---------- ---------- ---------- ---------- ----------
Interest Income:
Loans $12,729 $12,311 $11,962 $12,188 $11,860
Mortgage-backed
securities 679 742 751 785 833
Investment
securities 358 257 185 178 209
Interest-bearing
deposits and
other 689 651 607 610 571
-------------------------------------------------------
Total
Interest
Income 14,455 13,961 13,505 13,761 13,473
-------------------------------------------------------
Interest Expense:
Deposits 4,009 3,786 3,503 3,723 3,570
Borrowings 2,893 2,646 2,634 3,355 3,497
-------------------------------------------------------
Total
Interest
Expense 6,902 6,432 6,137 7,078 7,067
-------------------------------------------------------
Net Interest
Income 7,553 7,529 7,368 6,683 6,406
Provision for
Losses on
Loans 360 360 240 855 255
-------------------------------------------------------
Net Interest
Income After
Provision for
Loan Losses 7,193 7,169 7,128 5,828 6,151
-------------------------------------------------------
Noninterest Income
Late charges,
rent and
other 818 715 745 585 623
Loan servicing
fees 368 371 378 381 373
Service
charges and
other fees on
deposits 370 386 334 404 407
Gain on sale
of loans 215 179 170 140 189
Mortgage
servicing
rights - net (276) (42) 51 269 206
Gain on sale
of investment,
mbs & fixed
assets 66 0 19 6,653 10
Gain on sale
of real
estate acq'd
through
foreclosure (18) 25 9 123 106
-------------------------------------------------------
Total
noninterest
income 1,543 1,634 1,706 8,555 1,914
-------------------------------------------------------
Non interest expense
Employee
compensation
and benefits 3,008 2,811 2,964 2,655 2,763
Occupancy and
equipment 780 763 797 821 867
Data processing 317 347 331 331 320
Advertising 345 303 229 225 387
Franchise taxes 71 67 79 201 283
Other operating 1,214 1,519 1,165 1,317 1,307
FHLB prepayment
penalty (1) 0 0 0 18,879 0
-------------------------------------------------------
Total
noninterest
expense 5,735 5,810 5,565 24,429 5,927
-------------------------------------------------------
Net Income -
Before Income
Tax 3,001 2,993 3,269 (10,046) 2,138
Provision for
income taxes 963 953 1,051 (3,476) 670
-------------------------------------------------------
Reported Net
Income 2,038 2,040 2,218 (6,570) 1,468
-------------------------------------------------------
Adjusted for
non-recurring
items
Sale of
branches 0 0 0 (4,024)
FHLB
Prepayment
costs (net
of tax) 0 0 0 12,460 0
-------------------------------------------------------
Net Earnings
from
Operations 2,038 2,040 2,218 1,866 1,468
=======================================================
Earnings Per
Share
Reported:
Basic $0.27 $0.27 $0.29 ($0.89) $0.20
Diluted $0.27 $0.27 $0.29 N/A $0.19
Earnings Per
Share
Operations:
Basic $0.27 $0.27 $0.29 $0.24 $0.20
Diluted $0.27 $0.27 $0.29 $0.24 $0.19
Basic
Weighted
Number of
Shares
Outstanding 7,632,132 7,660,120 7,677,795 7,645,005 7,513,890
Diluted
Weighted
Number of
Shares
Outstanding 7,638,147 7,681,186 7,711,433 7,684,500 7,559,916
Camco Financial Corporation
Selected Ratios and Statistics
Periods Ended September 30, 2005 and 2004
(In thousands, except for per share data and shares outstanding)
9 Months 9 Months 3 Months 3 Months
Ended Ended Ended Ended
9/30/05 9/30/04 9/30/05 9/30/04
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- -----------
Reported:
Return on Average
Equity 9.28% 5.75% 8.96% 6.23%
Return on Average
Assets 0.79% 0.50% 0.76% 0.53%
Interest Rate Spread 2.74% 2.23% 2.72% 2.22%
Net Interest Margin 2.95% 2.45% 2.94% 2.44%
Yield on earning assets 5.50% 5.13% 5.64% 5.12%
Cost of deposits 2.34% 2.06% 2.50% 2.09%
Cost of funds 3.69% 4.89% 3.81% 4.79%
Total cost of interest
bearing liabilities 2.76% 2.90% 2.92% 2.90%
Noninterest
expense/average assets 2.13% 2.16% 2.13% 2.15%
Efficiency Ratio 62.60% 72.33% 63.05% 71.24%
Non performing assets
to total assets 1.40% 1.11% 1.40% 1.11%
Non performing loans to
total net loans
including loans held
for sale 1.52% 1.13% 1.52% 1.13%
Allowance for loan
losses to total loans 0.78% 0.72% 0.78% 0.72%
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
September, June and March 2005
(In thousands, except for per share data and shares outstanding)
Average Table - Quarter Ended
---------------------------------------------------
Sept 30, 2005 Jun 30, 2005
------------------------- -------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
---------------------------------------------------
Interest - Earning
Assets:
Loans held for
sale 4,547 4,078
Loans receivable -
net 848,600 12,729 5.97% 839,894 12,311 5.83%
Mortgage-backed
securities 73,290 679 3.71% 78,766 742 3.77%
Investment
securities 39,555 358 3.62% 30,723 257 3.35%
Interest-bearing
deposits and
other 60,004 689 4.59% 59,353 651 4.39%
---------------------------------------------------
Total interest
earning assets 1,025,996 14,455 5.64% 1,012,814 13,961 5.51%
---------------------------------------------------
Noninterest-earning
assets 50,918 52,489
--------- ---------
Total Assets 1,076,914 1,065,303
========= =========
Interest-Bearing
Liabilities:
Deposits 642,363 4,009 2.50% 646,923 3,786 2.34%
Advances 303,520 2,893 3.81% 289,058 2,646 3.66%
---------------------------------------------------
Total interest-
bearing
liabilities 945,883 6,902 2.92% 935,981 6,432 2.75%
---------------------------------------------------
Noninterest-bearing
sources:
Noninterest-
bearing
liabilities 40,069 39,123
Shareholders'
equity 90,962 90,199
--------- ---------
Total Liabilities
and Shareholders'
Equity 1,076,914 1,065,303
========= =========
--------------- ---------------
Net Interest Income
& Margin 7,553 2.94% 7,529 2.97%
=============== ===============
Camco Financial Corporation
Averages for Quarters Ended
September, June and March 2005
(In thousands, except for per share data and shares outstanding)
Average Table - Quarter Ended
-----------------------------
Mar 31, 2005
-----------------------------
Average Yield/
Balance Interest Rate
-----------------------------
Interest - Earning Assets:
Loans held for sale 4,006
Loans receivable - net 836,569 11,962 5.69%
Mortgage-backed securities 82,381 751 3.65%
Investment securities 24,369 185 3.04%
Interest-bearing deposits and other 60,050 607 4.04%
-----------------------------
Total interest earning assets 1,007,375 13,505 5.36%
-----------------------------
Noninterest-earning assets 56,173
-----------
Total Assets 1,063,548
===========
Interest-Bearing Liabilities:
Deposits 642,359 3,503 2.18%
Advances 293,551 2,634 3.59%
-----------------------------
Total interest-bearing liabilities 935,910 6,137 2.62%
-----------------------------
Noninterest-bearing sources:
Noninterest-bearing liabilities 37,710
Shareholders' equity 89,928
-----------
Total Liabilities and Shareholders'
Equity 1,063,548
===========
-----------------
Net Interest Income & Margin 7,368 2.93%
=================
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