CAMBRIDGE, Ohio, Oct. 24, 2008 (GLOBE NEWSWIRE) -- Camco Financial Corporation (Nasdaq:CAFI) (Camco) reported net earnings for the quarter ended September 30, 2008 of $1.07 million or $0.15 per share as compared with net earnings of $843,000 or $0.12 per share for the same period in 2007.
For the 9 months ended September 30, 2008, Camco reported net earnings of $439,000 compared to $3.69 million of net earnings reported for the same 9 month period in 2007. Basic earnings per share for the 9 months ended September 30, 2008 were $0.06 compared to $0.50 for the same 9 month period in 2007. The year to date 2008 earnings reflect an increase of $3.2 million in Camco's provision for loan losses compared to the same period in 2007.
Camco's consolidated assets totaled $1.026 billion, primarily unchanged from December 31, 2007. The change in assets was comprised primarily of increases in cash and cash equivalents, to $44.2 million, as net loans receivable, including loans held for sale, decreased $30.8 million from December 31, 2007. In addition, Camco grew $38.4 million in total deposits year to date 2008, offset partially by a $31.1 million decrease in FHLB borrowings, reflecting our continued execution of our strategic plan to grow deposits, improve liquidity and reduce FHLB debt.
Camco recently announced a quarterly dividend of $.0375 per share to be paid on October 31, 2008. This dividend represents an annualized yield of 1.60% on Camco's September 30th quarter-end stock price.
President & CEO Richard C. Baylor commented, "As the economy in the Midwest appears to have fallen into recession and the global economic markets became more volatile over the course of the third quarter, we worked to stay focused on a few important issues confronting our company: controlling expenses, growing capital and reducing non-performing loans and related loan delinquencies. We are encouraged that the efforts of our employees -- working in one of the worst economic markets in most of our lifetimes -- were able to generate a small, but positive growth in earnings and thus capital. We remain committed to customer service and maintaining higher capital standards to afford our customers confidence and safety for their banking business."
Review of Significant Areas:
The following key items summarize Camco's financial results and operational initiatives undertaken during the third quarter of 2008:
* Capital increased $694,000 * Non accrual loans decreased $308,000 * Investments increased $5.0 million as loans receivable decreased $8.9 million * Total deposits decreased $469,000 * Net charge-off's of $1.3 million * Provision for loan losses of $850,000
Asset Quality: Non-performing loans as a percentage of loans increased to 3.52% at September 30, 2008 from 3.13% at December 31, 2007, or 12.46%. The allowance for loan losses as a percentage of loans increased to 96 basis points at September 30, 2008 from 82 basis points at December 31, 2007 an increase of 17.07% for that period. Baylor commented; "Although no one knows how long these uncertain economic times may last, we can reasonably expect continued pressure on earnings and capital from loan losses. We will continue to work to mitigate that negative impact to the best of our abilities."
Net Interest Income: Net interest income amounted to $6.7 million for the three months ended September 30, 2008, a decrease of $188,000, or 2.74%, compared to the three-month period ended September 30, 2007, generally reflecting the effects of a $17.6 million decrease in the average balance of interest-earning assets in 2008 compared to 2007. The net interest margin fell to 2.82% in the third quarter of 2008 compared to 2.97% in the same period of 2007 but increased 2 basis points from the second quarter of 2008.
Non-Interest Income: For the quarter ended September 30, 2008, total non-interest income increased 11.0% to $1.80 million from $1.63 million for the same period last year. The increase was primarily due to an increase in the gain on sale of loans and the appreciation in the value of mortgage servicing rights.
Operating Expenses: For the quarter ended September 30, 2008, operating expenses were $6.59 million compared to $7.22 million for the same period in 2007, or a decrease of 8.8%. The decrease was primarily in employee compensation and benefits, advertising and professional services.
Employee compensation decreased due to lower staffing levels relating to the previously announced merger of Camco into First Place Financial Corp. as well as one-time severance costs of $181,000 incurred in 2007.
Advertising decreased versus the previous year's third quarter which included non-recurring expenses relating to the promotion of new branches. Costs for professional services decreased primarily due to higher consulting services and recruiting costs incurred in 2007.
Camco Financial Corporation, holding company for Advantage Bank, is a multi-state financial 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 Camco Financial Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4639
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)(Unaudited)(Unaudited)
9/30/08 6/30/08 3/31/08 12/31/07 9/30/07
---------- ---------- ---------- ---------- ----------
Assets
Cash and Cash
Equivalents 44,207 46,113 45,953 23,004 16,950
Investments 100,353 95,312 94,721 91,688 100,671
Loans Held
for Sale 2,828 387 1,429 3,169 2,733
Loans
Receivable 789,113 798,760 803,158 818,725 840,920
Allowance for
Loan Loss (7,465) (8,174) (7,853) (6,623) (6,253)
---------- ---------- ---------- ---------- ----------
Loans
Receivable,
Net 781,648 790,586 795,305 812,102 834,667
Goodwill 6,683 6,683 6,683 6,683 6,683
Other Assets 90,266 88,403 88,126 86,615 85,956
---------- ---------- ---------- ---------- ----------
Total Assets $1,025,985 $1,027,484 $1,032,217 $1,023,261 $1,047,660
========== ========== ========== ========== ==========
Liabilities
Deposits 730,590 731,059 730,780 692,184 694,016
Borrowed
Funds 189,866 193,358 194,660 220,981 245,850
Other
Liabilities 18,950 17,182 20,314 21,462 18,955
---------- ---------- ---------- ---------- ----------
Total
Liabilities 939,406 941,599 945,754 934,627 958,821
Stockholders'
Equity 86,579 85,885 86,463 88,634 88,839
---------- ---------- ---------- ---------- ----------
Total
Liabilities
and
Stockholders'
Equity $1,025,985 $1,027,484 $1,032,217 $1,023,261 $1,047,660
========== ========== ========== ========== ==========
Stockholders'
Equity to
Total Assets 8.44% 8.36% 8.38% 8.66% 8.48%
Total Shares
Outstanding 7,155,595 7,155,595 7,155,595 7,155,595 7,202,095
Book Value
Per Share $12.10 $12.00 $12.08 $12.39 $12.34
Camco Financial Corporation
Condensed Consolidated Statements of Earnings
Year to Date Information
(In thousands, except for per share data and shares outstanding)
9 Months 9 Months
Ended Ended
9/30/08 9/30/07
(Unaudited) (Unaudited)
---------- ----------
Interest Income:
Loans 38,694 43,597
Mortgage-backed securities 2,038 1,646
Investment securities 1,201 1,834
Interest-bearing deposits and other 1,573 1,752
---------- ----------
Total Interest Income 43,506 48,829
---------- ----------
Interest Expense:
Deposits 17,539 18,871
Borrowings 6,355 8,461
---------- ----------
Total Interest Expense 23,894 27,332
---------- ----------
Net Interest Income 19,612 21,497
Provision for Losses on Loans 3,762 515
---------- ----------
Net Interest Income After Provision
for Loan Losses 15,850 20,982
---------- ----------
Noninterest Income:
Late charges, rent and other 990 1,185
Loan servicing fees 984 1,030
Service charges and other fees
on deposits 1,797 1,807
Gain on sale of loans 302 264
Mortgage servicing rights 115 (202)
Gain (loss) on sale of investment,
mbs & fixed assets 3 (25)
Income on cash surrender value
life insurance 746 708
---------- ----------
Total noninterest income 4,937 4,767
---------- ----------
Noninterest expense:
Employee compensation and benefits 9,990 10,031
Occupancy and equipment 2,546 2,634
Data processing 820 887
Advertising 719 1,019
Franchise taxes 905 830
Other operating 5,167 5,133
Merger / Acquisition 465 --
---------- ----------
Total noninterest expense 20,612 20,534
---------- ----------
Earnings before provision for inome taxes 175 5,215
Provision for income taxes (264) 1,521
---------- ----------
Net Earnings 439 3,694
========== ==========
Earnings Per Share Reported:
Basic $ 0.06 $ 0.50
Diluted $ 0.06 $ 0.50
Basic Weighted Number of
Shares Outstanding 7,155,595 7,375,164
Diluted Weighted Number of
Shares Outstanding 7,162,896 7,377,009
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
9/30/08 6/30/08 3/31/08 12/31/07 9/30/07
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
--------- --------- --------- --------- ---------
Interest Income:
Loans 12,503 12,667 13,524 14,358 14,595
Mortgage-backed
securities 703 701 634 600 552
Investment
securities 391 368 442 514 592
Interest-bearing
deposits and
other 510 579 484 575 559
----------------------------------------------------
Total Interest
Income 14,107 14,315 15,084 16,047 16,298
----------------------------------------------------
Interest Expense:
Deposits 5,419 5,720 6,401 6,558 6,537
Borrowings 2,022 2,129 2,203 2,531 2,907
----------------------------------------------------
Total Interest
Expense 7,441 7,849 8,604 9,089 9,444
----------------------------------------------------
Net Interest
Income 6,666 6,466 6,480 6,958 6,854
Provision for
Losses on Loans 590 850 2,322 980 200
----------------------------------------------------
Net Interest
Income After
Provision for
Loan Losses 6,076 5,616 4,158 5,978 6,654
----------------------------------------------------
Noninterest Income:
Late charges,
rent and other 310 327 352 379 353
Loan servicing
fees 332 321 330 345 335
Service charges
and other fees
on deposits 618 598 581 634 642
Gain on sale
of loans 127 57 119 89 107
Mortgage
servicing
rights 163 261 (309) 134 (22)
Gain (loss) on
sale of
investment, mbs
& fixed assets -- -- 3 1 (29)
Income on cash
surrender value
life insurance 254 249 243 240 239
----------------------------------------------------
Total
noninterest
income 1,804 1,813 1,319 1,822 1,625
----------------------------------------------------
Noninterest
expense:
Employee
compensation
and benefits 3,150 3,271 3,568 3,186 3,527
Occupancy and
equipment 827 826 893 829 891
Data processing 293 299 228 299 317
Advertising 229 294 196 280 358
Franchise taxes 285 273 347 273 276
Merger /
Acquisition 196 269 -- -- --
Other operating 1,606 1,654 1,907 1,882 1,849
----------------------------------------------------
Total
noninterest
expense 6,586 6,886 7,139 6,749 7,218
----------------------------------------------------
Earnings before
provision for
income taxes 1,294 543 (1,662) 1,051 1,061
Provision for
income taxes 225 170 (659) 244 218
----------------------------------------------------
Net earnings 1,069 373 (1,003) 807 843
====================================================
Earnings Per
Share Reported:
Basic $0.15 $0.05 ($0.14) $0.11 $0.12
Diluted $0.15 $0.05 ($0.14) $0.11 $0.12
Basic
Weighted
Number of
Shares
Outstanding 7,155,595 7,155,595 7,155,595 7,183,709 7,278,187
Diluted
Weighted
Number of
Shares
Outstanding 7,162,566 7,164,018 7,162,489 7,184,277 7,281,087