CAMBRIDGE, Ohio, April 27, 2009 (GLOBE NEWSWIRE) -- Camco Financial Corporation (Nasdaq:CAFI), the financial services holding company for Advantage Bank, reported today earnings for the quarter ended March 31, 2009 of $235,000 or $0.03 per share compared to a net loss of $15.8 million or $2.20 per share for the quarter ended December 31, 2008 and a net loss of $1.0 million or $0.14 per share during the first quarter of 2008. Total assets at March 31, 2009 were $966.9 million compared to $1.032 billion at March 31, 2008, representing a decrease of 6.3%. During the first quarter of 2009, the Company's two subsidiaries, Advantage Bank and Camco Title Agency were profitable, which together account for approximately 99% of the Company's total assets and loans.
Jim Huston, President and CEO said, "Despite continuing downturns in the economy and turmoil within the financial markets, we are encouraged by these results. Our new management team has been hard at work developing our strategic plan and identifying the new direction of the company. We plan to continue to focus on small victories such as those realized during the quarter in the areas of increased mortgage originations and specifically in March, improvements in overall delinquencies, reductions in nonperforming loans and improvements in our net interest margin."
Net Interest Income
Our quarterly net interest margin declined 4 basis points from prior quarter and 19 basis points from prior year first quarter due to increased non performing loans and refinancing of our existing loan portfolio attributable to the lower interest rate environment, which we have made a strategic decision to sell on the secondary market. Additionally, our interest margin has been impacted by increased repricing within our callable bond investment portfolio. Net interest income for the quarter decreased 5.7% from prior quarter and 9.8% from prior year first quarter. The yield on average earning assets decreased 38 basis points from prior quarter and 121 basis points from prior year in comparison to the 41 basis point and 110 basis point decreases in the cost of interest bearing funds during the same periods. During the month of March 2009, the Company experienced an increase in net interest margin, driven by improvements in our nonperforming loans and overall lowering of our funding costs. Management believes funding costs will continue to decrease due to lower rate repricing, and plans to continue its efforts to decrease nonperforming loans to prevent downward pressure on earning assets that has been evident in this economic downturn.
Noninterest Income
Noninterest income for the first quarter 2009 increased $3.2 million over prior quarter and $644,000 over prior year first quarter. Increases in noninterest income quarter over quarter resulted from increased gain on sale of fixed rate mortgage originations sold on the secondary market and increased loan closings through the Company's title agency subsidiary. An impairment charge recognized against mortgage servicing rights taken during the fourth quarter contributed significantly to the increase in noninterest income between quarters.
Noninterest Expense
Noninterest expense for the quarter decreased $7.6 million from prior quarter and $136,000 from prior year first quarter. The decrease in noninterest expense quarter over quarter resulted from an impairment charge to goodwill and real estate owned taken during the fourth quarter. Absent these charges noninterest expense increased slightly related to departure and recruitment costs of executive level employees.
Balance Sheet Review
Camco's total assets of $966.9 million at March 31, 2009 reflect a decrease of 3.4% from prior quarter and 6.3% from prior year. Loans outstanding at March 31, 2009 were $739.4 million reflecting a 4.3% decline during the quarter and a 7.9% decline from March 31, 2008. Camco's investment portfolio decreased by 3.3% from prior quarter, and was relatively flat from prior year. Cash and cash equivalents increased $3.7 million from year end and $10.0 million year over year reflective of management's strategy to increase on-balance sheet liquidity generated from mortgage payoffs. Deposits, including repurchase agreements, totaled $736.1 million, a decrease of 1.2% from prior quarter and 2.0% from prior year. Shareholders' equity at March 31, 2009 was $72.3 million compared to $71.7 million at December 31, 2008 and $86.5 million at March 31, 2008.
Asset Quality
Nonperforming loans continue to be a strain on the Company as balances in this area increased during the first quarter 2009. Camco's total nonperforming loans were $57.7 million at March 31, 2009 compared to $51.1 million at December 31, 2008 and $28.4 million at March 31, 2008. Throughout the quarter, our Credit Administration unit has continued to implement aggressive strategies to decrease our non-performing loans. Jim Huston said, "Our non performing loans continue to be a primary focus of our Board of Directors and our management team. While we have seen increases in these numbers from the end of year, we are beginning to see the results of our relentless effort, as we experienced decreases of $914,000 from February to March in our non performing loans."
Foreclosed properties increased during the first quarter 2009 to $10.7 million from the $8.9 million at December 31, 2008 and the $7.9 million at March 31, 2008, as the legal system remains strained due to current economic conditions and Camco continues working through a prolonged foreclosure process. Sales of foreclosed properties during the first quarter 2009 totaled $1.4 million while new foreclosed properties totaled $1.9 million. Our nonperforming loans and foreclosed properties remain concentrated in our Cincinnati and Columbus markets.
Net loans charged-off for the quarter totaled $535,000 or 0.30% of average loans annualized. This was a decrease from prior quarter 1.48% of average loans annualized and decreased from the .55% for prior year first quarter. Allocations to loan loss reserve were $648,000 for the quarter ended March 31, 2009 compared to $11.0 million for the quarter ended December 31, 2008 and $2.3 million for the quarter ended March 31, 2008. Our loan loss reserve as a percentage of total loans outstanding at March 31, 2009 was 2.19% an increase of 11 basis points from 2.08% at December 31, 2008, and an increase from the 0.99% at March 31, 2008. The adequacy of our loan loss reserve is analyzed quarterly and adjusted as necessary with a focus on maintaining appropriate reserves for potential loss.
About Camco Financial Corporation:
Camco Financial Corporation, Holding Company of Advantage Bank, is a multi-state financial services Holding Company headquartered in Cambridge, Ohio. Advantage Bank and its affiliate, Camco Title Agency, offer relationship banking that includes commercial, small business and consumer financial services, internet banking and title insurance services from 28 offices in Ohio, Kentucky and West Virginia. Additional information about Camco Financial Corporation may be found on the Company's web sites: http://www.camcofinancial.com and http://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)
3/31/09 12/31/08 9/30/08 6/30/08 3/31/08
------- -------- ------- ------- -------
Assets
------
Cash and
Cash
Equiv-
alents 56,008 52,285 44,207 46,113 45,953
Invest-
ments 95,506 98,758 100,353 95,312 94,721
Loans
Held for
Sale 4,340 2,185 2,828 387 1,429
Loans
Receiv-
able 739,435 772,388 789,113 798,760 803,158
Allowance
for Loan
Loss (15,860) (15,747) (7,465) (8,174) (7,853)
------- ------- ------ ------ ------
Loans
Receiv-
able,
Net 723,575 756,641 781,648 790,586 795,305
Goodwill -- -- 6,683 6,683 6,683
Other
Assets 87,460 90,577 90,266 88,403 88,126
------ ------ ------ ------ ------
Total
Assets $966,889 $1,000,446 $1,025,985 $1,027,484 $1,032,217
======== ========== ========== ========== ==========
Liabil-
ities
-------
Deposits 720,264 723,956 730,590 731,059 730,780
Borrowed
Funds 158,564 183,833 189,866 193,358 194,660
Other
Liabil-
ities 15,799 20,957 18,950 17,182 20,314
------ ------ ------ ------ ------
Total
Liabil-
ities 894,627 928,746 939,406 941,599 945,754
Stock-
holders'
Equity 72,262 71,700 86,579 85,885 86,463
------ ------ ------ ------ ------
Total
Liabil-
ities and
Stock-
holders'
Equity $966,889 $1,000,446 $1,025,985 $1,027,484 $1,032,217
======== ========== ========== ========== ==========
Stock-
holders'
Equity to
Total
Assets 7.47% 7.17% 8.44% 8.36% 8.38%
Total
Shares
Out-
standing 7,155,595 7,155,595 7,155,595 7,155,595 7,155,595
Book Value
Per Share $10.10 $10.02 $12.10 $12.00 $12.08
Camco Financial Corporation
Condensed Consolidated Statements of Operations
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
3/31/09 12/31/08 9/30/08 6/30/08 3/31/08
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- ----------- -----------
Interest
Income:
Loans 10,567 11,752 12,503 12,667 13,524
Mortgage-
backed
secur-
ities 664 702 703 701 634
Investment
secur-
ities 311 428 391 368 442
Interest-
bearing
deposits
and other 345 395 510 579 484
-----------------------------------------------------------
Total
Interest
Income 11,887 13,277 14,107 14,315 15,084
-----------------------------------------------------------
Interest
Expense:
Deposits 4,473 5,188 5,419 5,720 6,401
Borrowings 1,569 1,892 2,022 2,129 2,203
-----------------------------------------------------------
Total
Interest
Expense 6,042 7,080 7,441 7,849 8,604
-----------------------------------------------------------
Net
Interest
Income 5,845 6,197 6,666 6,466 6,480
Provision
for Losses
on Loans 648 11,031 590 850 2,322
-----------------------------------------------------------
Net
Interest
Income
After
Provision
for Loan
Losses 5,197 (4,834) 6,076 5,616 4,158
-----------------------------------------------------------
Noninterest
Income:
Rent and
other 461 282 310 327 352
Loan
servicing
fees 316 325 332 321 330
Service
charges
and other
fees on
deposits 501 590 618 598 581
Gain on
sale of
loans 369 61 127 57 119
Mortgage
servicing
rights 60 (2,740) 163 261 (309)
Gain
(loss) on
sale of
invest-
ment, mbs
& fixed
assets -- -- -- -- 3
Income on
CSVL
(BOLI) 256 254 254 249 243
-----------------------------------------------------------
Total
nonin-
terest
income 1,963 (1,228) 1,804 1,813 1,319
-----------------------------------------------------------
Noninterest
expense:
Employee
compen-
sation
and
benefits 3,476 3,289 3,151 3,271 3,568
Occupancy
and
equip-
ment 782 828 827 826 893
Data
process-
ing 307 332 293 299 228
Adver-
tising 172 219 229 294 196
Franchise
taxes 268 297 285 273 347
Merger /
Acqui-
sition 4 171 196 261 --
Other
oper-
ating 1,994 2,734 1,605 1,662 1,907
Goodwill
Impair-
ment -- 6,683 -- -- --
-----------------------------------------------------------
Total
nonint-
erest
expense 7,003 14,553 6,586 6,886 7,139
-----------------------------------------------------------
Earnings
before
provision
for
income
taxes 157 (20,615) 1,294 543 (1,662)
Provision
for
income
taxes (78) (4,852) 225 170 (659)
-----------------------------------------------------------
Reported
Net
Income 235 (15,763) 1,069 373 (1,003)
-----------------------------------------------------------
Net
Earnings
(loss) 235 (15,763) 1,069 373 (1,003)
===========================================================
Earnings
(Loss)
Per Share
Reported:
Basic $0.03 ($2.20) $0.15 $0.05 ($0.14)
Diluted $0.03 ($2.20) $0.15 $0.05 ($0.14)
Basic
Weighted
Number of
Shares
Out-
standing 7,192,817 7,155,595 7,155,595 7,155,595 7,155,595
Diluted
Weighted
Number of
Shares
Out-
standing 7,192,817 7,155,595 7,162,566 7,164,018 7,155,595
Camco Financial Corporation
Selected Ratios and Statistics
Periods Ended March 31, 2009 and 2008
(In thousands, except for per share data and shares outstanding)
3 Months 3 Months
Ended Ended
3/31/09 3/31/08
(Unaudited) (Unaudited)
----------- -----------
Return on average equity 1.31% -4.57%
Return on average assets 0.10% -0.39%
Interest rate spread 2.51% 2.62%
Net interest margin 2.62% 2.81%
Yield on earning assets 5.33% 6.54%
Cost of deposits 2.61% 3.80%
Cost of borrowings 3.70% 4.33%
Total cost of interest bearing liabilities 2.82% 3.92%
Noninterest expense to average assets 2.84% 2.78%
Efficiency ratio 89.69% 91.54%
Nonperforming assets to total assets 6.59% 3.29%
Non performing loans to total net loans including
loans held for sale 7.97% 3.56%
Allowance for loan losses to total loans 2.19% 0.99%
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 31, 2009 and 2008
(In thousands, except for per share data and
shares outstanding)
-----------------------------------------------
March 31, 2009 March 31, 2008
-----------------------------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
-----------------------------------------------
Interest - Earning
Assets:
Loans receivable
- net (1) 704,211 10,567 6.00% 787,903 13,524 6.87%
Securities (2) 94,220 975 4.14% 93,409 1,076 4.61%
FHLB Stock 29,888 338 4.52% 28,816 375 5.21%
Other interest
bearing accounts 64,493 7 0.04% 12,196 109 3.57%
-----------------------------------------------
Total interest
earning assets 892,812 11,887 5.33% 922,324 15,084 6.54%
-----------------------------------------------
Noninterest-earning
assets 92,221 103,551
------- ---------
Total Assets 985,033 1,025,875
======= =========
Interest-Bearing
Liabilities:
Deposits 685,870 4,473 2.61% 674,473 6,401 3.80%
Advances &
Borrowings 169,723 1,569 3.70% 203,526 2,203 4.33%
-----------------------------------------------
Total interest
-bearing
liabilities 855,593 6,042 2.82% 877,707 8,604 3.92%
-----------------------------------------------
Noninterest-bearing
sources:
Noninterest-bearing
liabilities 57,511 60,368
Shareholders' equity 71,929 87,800
------- ---------
Total Liabilities and
Shareholders' Equity 985,033 1,025,875
======= =========
---- ----
Net Interest margin 2.62% 2.81%
==== ====
----------- ------------
Net Interest Income & Spread 5,845 2.51% 6,480 2.62%
=========== ============
(1) Includes LHFS but does not include ALLL and Non-Accrual Loans
(2) Includes securities designated as available for sale