Camco Financial Announces Third Quarter 2013 Earnings

Camco Financial Announces Third Quarter 2013 Earnings

CAMBRIDGE, Ohio, Oct. 29, 2013 (GLOBE NEWSWIRE) -- Camco Financial Corporation
(Nasdaq:CAFI), the bank holding company for Advantage Bank, today announced
financial results for the three months ended September 30, 2013.

Net earnings increased to $0.7 million for the third quarter 2013 from $0.5
million for the same period in 2012. For the three months ended September 30,
2013, earnings per fully diluted share were $0.05 versus $0.07 a year ago. The
third quarter 2013 results included recognition of mortgage servicing rights
($0.4 million) and release of a portion ($0.6 million) of the allowance for
loan losses. There were 15,027,666 diluted weighted shares outstanding for the
third quarter 2013 compared with 7,473,123 diluted weighted shares outstanding
for the same period in 2012. The year-over-year increase in the number of
diluted shares outstanding is principally due to common shares issued in the
Company's stock offering completed in the fourth quarter 2012.

James E. Huston, President and CEO, stated, "As a result of the solid
year-over-year third quarter performance, we were able to further strengthen
our balance sheet and continue to improve credit quality. Stockholders' equity
to total assets increased to 8.85% of total assets at September, 30, 2013,
from 6.29% on the same date last year. Classified loans and non-performing
loans at quarter-end were 31% and 35%, respectively, below levels at the same
date in 2012. We are continuing to implement multiple initiatives related to
growth opportunities and are also focused on adapting to the continuing
sluggish economy while maintaining strong liquidity. The sequential quarter
improvement in the third quarter 2013 net interest margin to 3.27% is a
positive sign of these efforts."

Mr. Huston continued, "On October 10, 2013, we announced a definitive
agreement with Huntington Bancshares Incorporated under which they will
acquire Camco Financial Corporation in a cash and stock transaction. Under the
terms of the agreement, which was unanimously approved by the boards of both
companies, shareholders of Camco Financial may elect to receive 0.7264 shares
of Huntington common stock, or $6.00 in cash, for each share of Camco
Financial common stock, subject to proration provisions specified in the
merger agreement that provide for a targeted aggregate split of total
consideration of 80% common stock and 20% cash. Previously issued warrants and
options may be exercised according to their original terms up until closing
and will convert to rights to acquire shares of Huntington common stock after
the consummation of the merger. We are excited to be joining a financial
institution that, like Camco Financial, has a longstanding commitment to
customer service, innovative products and investing in the communities it
serves.This transaction is expected to close in the first half of 2014,
subject to the satisfaction of customary closing conditions, including
regulatory approvals and the approval of the Camco Financial stockholders."

Review of Financial Performance

Overview:

The following items summarize key aspects of the Company's performance during
the quarter ended September 30, 2013 compared to the same period in 2012:

  *Total deposit balances decreased $21.3 million, or 3%, to $609.0 million
    driven by the anticipated reduction of higher-cost, single-product
    certificates of deposit.
  *Net interest income declined $0.3 million to $5.7 million. This decrease
    was attributable to a reduction in loan balances, especially related to
    early loan payoffs in the fourth quarter of 2012, coupled with lower loan
    yields.The anticipated reduction in certificates of deposit balances
    during this same period reduced the cost of funds and partially offset the
    impact of the lower earning asset yield.
  *Noninterest income increased to $1.9 million driven by a higher value for
    mortgage servicing rights as a result of mortgage originations and lower
    prepayments of mortgages, partially offset by lower spreads on gain on
    sale of residential mortgage loans.
  *Noninterest expense was $7.3 million for the third quarter of 2013.The
    increase from the same period in 2012 was principally due to growth
    initiatives, which was partially offset by lower REO and classified assets
    expenses attributable to credit quality improvements.
  *Classified assets (which include substandard, doubtful, loss, and real
    estate owned) were $27.1 million at September 30, 2013, representing a
    decrease of 38% compared to the same date in 2012.

Net Interest Margin:

Net interest margin was 3.27% for the third quarter of 2013 compared to 3.49%
for the same period last year due to the lower yield on earning assets.Net
interest margin is expected to be under pressure during the remainder of 2013
due to low interest rates and slow economic growth.The Company continues to
pursue favorable risk-adjusted pricing opportunities, further improvement in
credit quality, and other balance sheet changes to enhance net interest margin
in future periods.

Net Interest Income:

Net interest income before the provision for loan losses was $5.7 million for
the third quarter of 2013 compared to $6.0 million for the same period a year
ago.The decline was attributable to a reduction in the yield on the earning
assets, partially offset by a decrease in the cost of funds.

The yield on earning assets declined to 4.06% in the third quarter of 2013
from 4.52% a year ago.This decrease was due to lower loan balances in the
higher earning asset mix, which resulted from early loan payoffs in late-2012
as well as lower loan yields attributable to the current interest rate
environment.The planned runoff of higher-yielding certificates of deposit,
along with the restructuring of $25 million of FHLB advances, contributed to a
reduction in the cost of funds and helped to mitigate the impact of the yield
on earning assets.Cost of funds for the quarter ended September 30, 2013,
declined to 0.91% from 1.12% for the third quarter of 2012.

Provision Expense, Credit Quality, and Allowance for Loan Losses:

The allowance for loan and lease losses was $9.7 million at September 30,
2013, compared to $14.5 million on the same date a year ago.This decrease was
due to further improvement in asset quality and, therefore, a ($0.6) million
provision for loan losses was recorded for the third quarter of 2013 compared
to $0.5 million for the same period in 2012.The Company maintains a strong
allowance for loan and lease losses and remains committed to further
improvement in asset quality.

  *Total delinquent loans were $12.7 million at September 30, 2013, a 24%
    decrease since the same date last year.
  *Classified loans (which include substandard, doubtful, and loss) were
    $22.5 million at September 30, 2013, or 31% below the same date in 2012.
  *Non-performing loans were $14.9 million at September 30, 2013 or 35% below
    the September 30, 2012 amount.
  *Non-performing loans as a percentage of total loans (including loans held
    for sale) were 2.53% at September 30, 2013, compared to 3.80% on the same
    date of the prior year.
  *The allowance for loan and lease losses, expressed as a percentage of
    non-performing loans, was 65.1% at September 30, 2013 compared to 63.7% on
    the same date a year ago.

Noninterest Income:

Noninterest income increased 2% to $1.9 million for the third quarter of
2013.This was primarily attributable to higher value of mortgage servicing
rights versus the same period last year as a result of mortgage originations
and lower prepayment of mortgages, partially offset by lower spreads on gain
on sale of residential mortgage loans.

Noninterest Expense:

Noninterest expense was $7.3 million for the third quarter of 2013 compared to
$6.9 million for the same quarter a year ago.The increase was principally due
to growth initiatives, which was partially offset by lower REO and classified
assets expenses attributable to credit quality improvements.

Balance Sheet:

Total assets were $760.6 million at September 30, 2013, compared to $754.2
million on the same date last year.This increase was principally due to the
increase in stockholder equity, which more than offset the anticipated runoff
of higher cost, single product certificates of deposit, being used to fund
additional earning assets.The increased stockholder equity resulted from the
$10 million stock offering, the recognition of the deferred tax asset, and
normal earnings. We continue to focus on profitable lending opportunities and
investments as a means of employing our cash efficiently.

Asset Quality:

Loan quality continued to improve during the third quarter of 2013 resulting
in steady progress concerning classified loans and non-performing loans over
the past twelve months.

The following table provides a comparison of changes in key factors for the
third quarter of 2013, year-end 2012 and the third quarter of 2012:

(Dollars in thousands)        9/30/2013 12/31/2012 9/30/2012
Classified Loans*             $22,492   $29,184    $32,649
Non-Performing Loans          $14,860   $19,594    $22,787
Loan Loss Reserve             $9,671    $12,147    $14,508
Loan Loss Reserve/Total Loans 1.64%     2.12%      2.42%

*Includes substandard, doubtful and loss (including homogenous loans)

Deposits and Borrowings:

Total deposits at the end of the third quarter of 2013 were $21.3 million
below September 30, 2012.The decrease is mostly due to a planned reduction in
certain categories of certificates of deposit, which declined $19.1 million
since September 30, 2012.The Company is focused on continuing to reduce the
level of non-core deposits, particularly higher-yielding, single-product
certificates of deposit related to rate sensitive depositors.

FHLB advances and other borrowings were $71.4 million at September 30, 2013,
an increase of 11%, compared to the same date last year.This increase was due
to an increase in customer repurchase agreements and an increase in borrowing
on the FHLB cash advance line to fund earning assets on a short-term basis.

Equity:

Stockholders' equity was $67.3 million at September 30, 2013, compared to
$47.4 million at September 30, 2012.Key factors that contributed to this 42%
increase included completion of the Company's $10.0 million stock offering in
November 2012, recognitionof a $5.9 million deferred tax assetin the second
quarter of2013,net earnings during the past twelve months, and proceeds from
the exercise of warrants related to the rights offering.Stockholders' equity
at September 30, 2013 was 8.85% of total assets compared to 6.29% on the same
date last year.

About Camco Financial Corporation: Camco Financial Corporation, holding
company for Advantage Bank, is a multi-state bank holding company
headquartered in Cambridge, Ohio.Advantage Bank offers community banking that
includes commercial, business and consumer financial services and internet
banking from 22 offices.Additional information about Camco Financial may be
found on the Company's web sites: www.camcofinancial.com or
www.advantagebank.com.

Forward Looking Statements

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.

Important Information for Investors and Shareholders

In connection with the proposed merger transaction, Huntington will file with
the Securities and Exchange Commission a Registration Statement on Form S-4
that will include a Proxy Statement of the Company, and a Prospectus of
Huntington, as well as other relevant documents concerning the proposed
transaction. Shareholders are urged to read the Registration Statement and the
Proxy Statement/Prospectus regarding the proposed merger when it becomes
available and any other relevant documents filed with the SEC, as well as any
amendments or supplements to those documents, because they will contain
important information. A free copy of the Proxy Statement/Prospectus, as well
as other filings containing information about Huntington and Camco Financial,
may be obtained at the SEC's Internet site (http://www.sec.gov). You will also
be able to obtain these documents, free of charge, from Huntington at
www.Huntington.com under the tab "Investor Relations" and then under the
heading "Publications and Filings", from Huntington Investor Relations at
800-576-5007, and from the Company by accessing Camco Financial's website at
https://www.advantagebankonline.com under the tab "Investor Relations" and
then under the heading "SEC Filings", or from Camco Financial Investor
Relations at 740-435-2020.

Huntington and the Company and certain of their directors and executive
officers may be deemed to be participants in the solicitation of proxies from
the stockholders of Camco Financial in connection with the proposed merger.
Information about the directors and executive officers of Huntington is set
forth in the proxy statement for Huntington's 2013 annual meeting of
shareholders, as filed with the SEC on Schedule 14A on March 7, 2013.
Information about the directors and executive officers of Camco Financial is
set forth in the proxy statement for the Company's 2013 annual meeting of
stockholders, as filed with the SEC on a Schedule 14A on April 19, 2013.
Additional information regarding the interests of those participants and other
persons who may be deemed participants in the transaction may be obtained by
reading the Proxy Statement/Prospectus regarding the proposed merger when it
becomes available. Free copies of this document may be obtained as described
in the preceding paragraph.

Camco Financial Corporation
Condensed Consolidated Statements of Financial Condition
(In thousands, except for per share data and shares outstanding)
                                                              
                  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                  9/30/13     6/30/13     3/31/13     12/31/12    9/30/12
Assets                                                         
Cash and Cash      $17,185   $27,125   $118,212  $58,379   $26,920
Equivalents
Investments       101,936    103,529    39,432     86,201     80,648
                                                              
Loans Held for     1,831      2,697      3,824      6,544      6,341
Sale
                                                              
Loans Receivable   586,674    571,470    555,180    566,722    594,030
Allowance for Loan (9,671)    (10,556)   (11,532)   (12,147)   (14,508)
Loss
Loans Receivable,  577,003    560,914    543,648    554,575    579,522
Net
                                                              
Other Assets       62,644     62,514     58,246     58,560     60,811
                                                              
Total Assets       $760,599  $756,779  $763,362  $764,259  $754,242
                                                              
Liabilities                                                    
Deposits           $609,012  $614,623  $626,741  $627,224  $630,304
Borrowed Funds     71,408     65,788     63,981     64,219     64,466
Other Liabilities  12,899     10,432     11,929     13,089     12,050
                                                              
Total Liabilities  $693,319  $690,843  $702,651  $704,532  $706,820
                                                              
Stockholders'      $67,280   $65,936   $60,711   $59,727   $47,422
Equity
                                                              
Total Liabilities
and Stockholders'  $760,599  $756,779  $763,362  $764,259  $754,242
Equity
                                                              
                                                              
Stockholders'
Equity to Total    8.85%       8.71%       7.95%       7.82%       6.29%
Assets
                                                              
Total Shares       13,603,438 13,549,082 13,529,287 13,233,036 7,465,563
Outstanding
                                                              
Book Value Per     $4.95     $4.87     $4.49     $4.51     $6.35
Share


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
                                                     9/30/13     9/30/12
                                                     (Unaudited) (Unaudited)
Interest Income:                                                 
Loans                                                 $19,905   $23,434
Mortgage-backed securities                            27         48
Investment securities                                 456        302
Interest-bearing deposits and other                   379        330
Total Interest Income                                 $20,767   $24,114
                                                                
Interest Expense:                                                
Deposits                                             $3,012    $4,191
Borrowings                                            1,241      1,836
Total Interest Expense                                4,253      6,027
Net Interest Income                                   $16,514   $18,087
                                                                
Provision for Losses on Loans                         $(509)    $1,599
Net Interest Income After Provision for Loan Losses   $17,023   $16,488
                                                                
Noninterest Income:                                              
Late charges, rent and other                          $692      $872
Loan servicing fees                                   836        849
Service charges and other fees on deposits            1,480      1,513
Gain on sale of loans                                 1,486      1,714
Mortgage servicing rights                            861        (78)
Gain (loss) on sale of investment, mbs & fixed assets 54         (2)
Income on cash surrender value life insurance         633        642
Total noninterest income                              $6,042    $5,510
                                                                
Noninterest expense:                                             
Employee compensation and benefits                    $10,804   $9,392
Occupancy and equipment                               2,182      2,192
FDIC premium and other insurances                     1,310      1,380
Data processing                                       821        821
Advertising                                          405        296
Franchise taxes                                       675        583
Other operating                                      5,191      6,033
Total noninterest expense                             $21,388   $20,697
                                                                
Earnings (loss) before provision for income taxes     1,677      1,301
                                                                
Provision for income taxes                            $(5,703)  $(78)
Net Earnings (Loss)                                   $7,380    $1,379
                                                                
Earnings (Loss) Per Share:                                       
Basic                                                $0.55     $0.19
Diluted                                              $0.50     $0.19
                                                                
Basic Weighted Number of                                         
Shares Outstanding                                    13,506,120 7,385,423
Diluted Weighted Number of                                      
Shares Outstanding                                    14,718,138 7,387,589


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
                  9/30/13     6/30/13     3/31/13     12/31/12    9/30/12
                  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest Income:                                               
Loans              $6,724    $6,591    $6,590    $7,240    $7,522
Mortgage-backed    7          7          13         15         15
securities
Investment         187        163        106        119        116
securities
Interest-bearing   108        122        149        135        112
deposits and other
Total Interest     $7,026    $6,883    $6,858    $7,509    $7,765
Income
                                                              
Interest Expense:                                              
Deposits          $979      $1,000    $1,033    $1,128    $1,235
Borrowings         386        429        426        577        545
Total Interest     1,365      1,429      1,459      1,705      1,780
Expense
Net Interest       $5,661    $5,454    $5,399    $5,804    $5,985
Income
                                                              
Provision for      (609)      --        100        (1,455)    457
Losses on Loans
Net Interest
Income After       $6,270    $5,454    $5,299    $7,259    $5,528
Provision for Loan
Losses
                                                              
Noninterest                                                    
Income:
Rent and other     $223      $168      $301      $484      $321
Loan servicing     287        273        276        284        283
fees
Service charges
and other fees on  501        517        462        528        515
deposits
Gain on sale of    251        546        689        770        633
loans
Mortgage servicing 405        351        105        60         (117)
rights
Gain (loss) on
sale of            --        (7)        61         126        --
investment, mbs &
fixed assets
Income on CSVL     214        211        208        237        216
(BOLI)
Total noninterest  $1,881    $2,059    $2,102    $2,489    $1,851
income
                                                              
Noninterest                                                    
expense:
Employee
compensation and   $3,777    $3,518    $3,509    $3,208    $2,996
benefits
Occupancy and      718        719        745        772        725
equipment
FDIC premium and   428        441        441        436        457
other insurances
Data processing    261        277        283        326        250
Advertising       133        128        144        77         101
Franchise taxes    218        227        230        182        199
Other operating   1,718      1,978      1,495      1,943      2,220
Total noninterest  $7,253    $7,288    $6,847    $6,944    $6,948
expense
                                                              
Earnings (loss)
before provision   $898      $225      $554      $2,804    $431
for income taxes
                                                              
Provision for      $171      $(5,929)  $55       $20       $(53)
income taxes
Net Earnings       $727      $6,154    $499      $2,784    $484
(loss)
                                                              
Earnings (Loss)                                                
Per Share:
Basic             $0.05     $0.45     $0.04     $0.26     $0.07
Diluted           $0.05     $0.42     $0.03     $0.26     $0.07
                                                              
Basic Weighted                                                 
Number of
Shares Outstanding 13,583,511 13,545,861 13,386,828 10,806,051 7,467,255
Diluted Weighted                                               
Number of
Shares Outstanding 15,027,666 14,718,045 14,392,077 10,806,269 7,473,123


Camco Financial Corporation
Selected Ratios and Statistics
(In thousands, except for per share data and shares outstanding)
                                                              
                         3 Months      3 Months     9 Months     9 Months
                         Ended         Ended        Ended        Ended
                         9/30/13       9/30/12      9/30/13      9/30/12
                         (Unaudited)   (Unaudited)  (Unaudited)  (Unaudited)
                                                              
Return on average equity  4.38%         4.12%        14.81%       3.96%
                                                              
Return on average assets  0.38%         0.25%        1.30%        0.24%
                                                              
Interest rate spread      3.15%         3.40%        3.04%        3.34%
                                                              
Net interest margin       3.27%         3.49%        3.16%        3.45%
                                                              
Yield on earning assets   4.06%         4.52%        3.97%        4.59%
                                                              
Cost of deposits          0.73%         0.87%        0.74%        0.98%
                                                              
Cost of borrowings        2.27%         3.16%        2.52%        3.32%
                                                              
Total cost of interest    0.91%         1.12%        0.93%        1.25%
bearing liabilities
                                                              
Noninterest expense to    3.83%         3.64%        3.76%        3.58%
average assets
                                                              
Efficiency ratio          96.17%        88.67%       94.82%       87.71%
                                                              
Nonperforming assets to   2.69%         4.60%        2.69%        4.60%
total assets
                                                              
Non performing loans to
total net loans           2.53%         3.80%        2.53%        3.80%
includingloans held for
sale
                                                              
Allowance for loan losses
to total loans including  1.64%         2.42%        1.64%        2.42%
loans held for sale
                                                              
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
                      (In thousands, except for per share data and shares
                       outstanding)
                                                  
                      September 30, 2013           September 30, 2012
                      Average              Yield/ Average            Yield/
                      Balance     Interest  Rate   Balance    Interest Rate
Interest - Earning                                                 
Assets:
Loans receivable - net $565,448  $6,724  4.76%  $583,587 $7,522 5.16%
(1)
Securities (2)         102,610    194      0.76%  78,729    131     0.67%
FHLB Stock             9,888      105      4.25%  9,888     104     4.21%
Other interest bearing 15,069     3        0.08%  14,605    8       0.22%
accounts
Total interest earning $693,015  $7,026  4.06%  $686,809 $7,765 4.52%
assets
                                                                  
Noninterest-earning    $64,827                  $75,685          
assets
Total Average Assets   $757,842                 $762,494         
                                                                  
                                                                  
Interest-Bearing                                                   
Liabilities:
Deposits               $535,153  $979    0.73%  $565,020 1,235   0.87%
Advances & Borrowings  67,873     386      2.27%  68,908    545     3.16%
Total interest-bearing $603,026  $1,365  0.91%  $633,928 $1,780 1.12%
liabilities
                                                                  
Noninterest-bearing                                                
sources:
Noninterest-bearing    88,406                    81,527            
liabilities
Shareholders' equity   66,410                    47,039            
Total Liabilities and  $757,842                 $762,494         
Shareholders' Equity
                                                                  
Net Interest margin                        3.27%                    3.49%
                                                                  
Net Interest Income &             $5,661  3.15%            $5,985 3.40%
Spread
                                                                  
(1) Includes LHFS but does not include ALLL and Non-Accrual Loans
(2) Includes securities designated as available for sale and held to maturity

CONTACT: James E. Huston, CEO
         John E. Kirksey, CFO
         Phone:  740-435-2020

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