Camco Financial Announces Strong Third Quarter 2005 Earnings Growth.

CAMBRIDGE, Ohio -- (Nasdaq:CAFI) - Camco Financial Corporation (Camco) reported net earnings for the quarter ended September 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 21, 2005. This dividend represents an annualized yield of 4.10% on Camco's September 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 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 equity, which excludes Goodwill, was 9.96% for the same nine month period.

Mr. Baylor continued, "The average yield on our earning assets continues to increase as we execute 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 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 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.

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 rights, increased 6.5% to $1.82 million from $1.71 million. This increase was primarily due to an increase in commercial loan prepayment fees of approximately $95,000 and an increase of $25,000 from "Extended Overdraft" fee income, which was formally introduced in July 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 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: 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 as a percentage of loans increased from 1.13% at June 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 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 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. The newest banking center in Vienna, West Va. opened in July 2005 and another new branch planned for the high growth northern Cincinnati suburb of Tylersville, Ohio 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, internet banking and title insurance services from 29 offices in 22 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.

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%
                                                     =================