##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D. C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2011
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File Number 0-25196
 CAMCO FINANCIAL CORPORATION
  Delaware
    
    51-0110823(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification Number)814 Wheeling Avenue, Cambridge, Ohio
    
    43725-9757(Address of principal executive offices)
    
    (Zip Code)
  þ o
 þ o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ
 o þ




---



##### 



PagePART I  FINANCIAL INFORMATIONItem 1. Consolidated Statements of Financial Condition
    
    
    3Consolidated Statements of Earnings
    
    
    4Consolidated Statements of Comprehensive Income
    
    
    5Consolidated Statements of Cash Flows
    
    
    6Notes to Consolidated Financial Statements
    
    
    8Item 2. Managements Discussion and Analysis of
Financial Condition and Results of
Operations
    
    
    21Item 3. Quantitative and Qualitative Disclosures about
Market Risk
    
    
    32Item 4. Controls and Procedures
    
    
    32PART II  OTHER INFORMATION
    
    
    32SIGNATURES
    
    
    34EX-31.1EX-31.2EX-32.1EX-32.2
   2




---



##### Table of Contents



Item 1.
    
    Financial Statements
 Camco Financial Corporation
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 March 31,
    
    
    December 31,2011
    
    
    2010(unaudited)ASSETSCash and due from banks
    
    $
    12,163
    
    
    $
    13,143Interest-bearing deposits in other financial institutions
    
    
    49,614
    
    
    
    15,971Cash and cash equivalents
    
    
    61,777
    
    
    
    29,114Securities available for sale, at market
    
    
    13,402
    
    
    
    30,768Securities held to maturity, at cost
    
    
    3,804
    
    
    
    3,948Loans held for sale  at lower of cost or fair value
    
    
    1,249
    
    
    
    2,208Loans receivable  net
    
    
    648,090
    
    
    
    667,840Office premises and equipment  net
    
    
    9,667
    
    
    
    9,928Real estate acquired through foreclosure
    
    
    10,308
    
    
    
    10,096Federal Home Loan Bank stock  at cost
    
    
    9,888
    
    
    
    29,888Accrued interest receivable
    
    
    3,218
    
    
    
    3,521Mortgage servicing rights  at lower of cost or market
    
    
    4,111
    
    
    
    3,841Prepaid expenses and other assets
    
    
    6,491
    
    
    
    4,426Cash surrender value of life insurance
    
    
    19,562
    
    
    
    19,388Total assets
    
    $
    791,567
    
    
    $
    814,966LIABILITIES AND STOCKHOLDERS EQUITYDeposits
    
    $
    655,597
    
    
    $
    651,816Other Borrowings
    
    
    10,833
    
    
    
    11,530Advances from the Federal Home Loan Bank
    
    
    68,842
    
    
    
    92,934Advances by borrowers for taxes and insurance
    
    
    1,373
    
    
    
    2,413Accounts payable and accrued liabilities
    
    
    9,033
    
    
    
    10,170Total liabilities
    
    
    745,678
    
    
    
    768,863Commitments
    
    
    
    
    
    
    Stockholders equity:Preferred stock  $1 par value; authorized 100,000 shares; no shares outstanding
    
    
    
    
    
    
    Common stock  $1 par value; authorized 14,900,000 shares; 8,884,508 shares
issued at March 31, 2011 and December 31, 2010
    
    
    8,885
    
    
    
    8,885Unearned compensation
    
    
    (55
    )
    
    
    (94
    )Additional paid-in capital
    
    
    60,418
    
    
    
    60,260Retained earnings
    
    
    788
    
    
    
    136Accumulated other comprehensive income net of related tax effects
    
    
    (33
    )
    
    
    1,030Treasury stock -1,678,913 shares at March 31, 2011 and December 31, 2010, at cost
    
    
    (24,114
    )
    
    
    (24,114
    )Total stockholders equity
    
    
    45,889
    
    
    
    46,103Total liabilities and stockholders equity
    
    $
    791,567
    
    
    $
    814,966
  3




---



##### Table of Contents



Camco Financial Corporation
 
 CONSOLIDATED STATEMENTS OF EARNINGS
 
 2011
    
    
    2010(unaudited)Interest and dividend incomeLoans
    
    $
    8,901
    
    
    $
    9,280Investment securities
    
    
    355
    
    
    
    578Other interest-earning accounts
    
    
    346
    
    
    
    340Total interest and dividend income
    
    
    9,602
    
    
    
    10,198Interest ExpenseDeposits
    
    
    2,189
    
    
    
    2,945Borrowings
    
    
    803
    
    
    
    997Total interest expense
    
    
    2,992
    
    
    
    3,942Net interest income
    
    
    6,610
    
    
    
    6,256Provision for losses on loans
    
    
    1,013
    
    
    
    905Net interest income after provision for losses on loans
    
    
    5,597
    
    
    
    5,351Other incomeLate charges, rent and other
    
    
    362
    
    
    
    409Loan servicing fees
    
    
    307
    
    
    
    317Service charges and other fees on deposits
    
    
    503
    
    
    
    518Gain on sale of loans
    
    
    92
    
    
    
    229Mortgage servicing rights  net
    
    
    271
    
    
    
    30Gain on sale of investments
    
    
    1,278
    
    
    
    Income on cash surrender value life
    
    
    217
    
    
    
    215Total other income
    
    
    3,030
    
    
    
    1,718General, administrative and other expensesEmployee compensation and benefits
    
    
    3,378
    
    
    
    3,385Occupancy and equipment
    
    
    761
    
    
    
    742Federal deposit insurance premiums
    
    
    545
    
    
    
    478Data processing
    
    
    284
    
    
    
    280Advertising
    
    
    86
    
    
    
    81Franchise taxes
    
    
    170
    
    
    
    265Postage, supplies and office expenses
    
    
    218
    
    
    
    293Travel, training and insurance
    
    
    122
    
    
    
    78Professional services
    
    
    382
    
    
    
    575Transaction processing
    
    
    168
    
    
    
    193Real estate owned and other expenses
    
    
    830
    
    
    
    422Loan expenses
    
    
    483
    
    
    
    150Total general, administrative and other expense
    
    
    7,427
    
    
    
    6,942Earnings before federal income taxes
    
    
    1,200
    
    
    
    127Federal income taxes
    
    
    548
    
    
    
    (2
    )NET EARNINGS
    
    $
    652
    
    
    $
    129EARNINGS PER SHAREBasic
    
    $
    .09
    
    
    $
    .02Diluted
    
    $
    .09
    
    
    $
    .02
  4




---



##### Table of Contents



Camco Financial Corporation
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
 2011
    
    
    2010(unaudited)Net earnings
    
    $
    652
    
    
    $
    129Other comprehensive income, net of tax:Unrealized holding gains on securities during the period, net of tax
effects of $(114) and $35 in 2011 and 2010, respectively
    
    
    221
    
    
    
    68Reclassification adjustment for realized gains included in
net earnings, net of taxes of $(435) and $0 in 2011 and 2010,
respectively (71) (44) (7)
    
    
    (1,278
    )
    
    
    Comprehensive income (loss)
    
    $
    (405
    )
    
    $
    197
  5




---



##### Table of Contents



Camco Financial Corporation
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 2011
    
    
    2010(unaudited)Cash flows from operating activities:Net earnings for the period
    
    $
    652
    
    
    $
    129Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:Amortization of deferred loan origination fees
    
    
    (39
    )
    
    
    38Amortization of premiums and discounts on investment and
mortgage-backed securities  net
    
    
    4
    
    
    
    6Amortization of mortgage servicing rights  net
    
    
    (304
    )
    
    
    103Depreciation and amortization
    
    
    313
    
    
    
    289Provision for losses on loans
    
    
    1,013
    
    
    
    905Stock option expense
    
    
    158
    
    
    
    138Deferred compensation
    
    
    39
    
    
    
    31Provisions for losses on REO
    
    
    216
    
    
    
    77(Gain) loss on sale of real estate acquired through foreclosure
    
    
    (24
    )
    
    
    3Gain on sale of loans
    
    
    (92
    )
    
    
    (229
    )Gain on sale of investments
    
    
    (1,278
    )
    
    
    Loans originated for sale in the secondary market
    
    
    (20,346
    )
    
    
    (13,302
    )Proceeds from sale of loans in the secondary market
    
    
    21,397
    
    
    
    12,406Net increase in cash surrender value of life insurance
    
    
    (174
    )
    
    
    (173
    )Increase (decrease) in cash due to changes in:Accrued interest receivable
    
    
    303
    
    
    
    121Prepaid expenses and other assets
    
    
    (1,516
    )
    
    
    (283
    )Accrued interest and other liabilities
    
    
    (1,137
    )
    
    
    (1,136
    )Net cash provided by (used in) operating activities
    
    
    (815
    )
    
    
    (877
    )Cash flows provided by (used in) investing activities:Principal repayments, maturities on securities held to maturity
    
    
    143
    
    
    
    56Principal repayments, maturities on securities available for sale
    
    
    2,435
    
    
    
    8,169Purchases of investment securities designated as available for sale
    
    
    (12,615
    )
    
    
    Proceeds from sale of investments
    
    
    27,209
    
    
    
    Redemption of FHLB Stock
    
    
    20,000
    
    
    
    Loan principal repayments
    
    
    44,735
    
    
    
    42,791Loan disbursements
    
    
    (27,225
    )
    
    
    (70,179
    )Additions to office premises and equipment
    
    
    (52
    )
    
    
    (169
    )Proceeds from sale of life insurance
    
    
    
    
    
    
    160Proceeds from sale of real estate acquired through foreclosure
    
    
    896
    
    
    
    596Net cash provided by (used in) investing activities
    
    
    55,526
    
    
    
    (18,576
    )Net cash provided by (used in) operating and investing
activities balance carried forward
    
    
    54,711
    
    
    
    (19,453
    )
  6




---



##### Table of Contents



Camco Financial Corporation
 CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
 
 2011
    
    
    2010Net cash provided by (used in) operating and investing
activities (balance brought forward)
    
    $
    54,711
    
    
    $
    (19,453
    )Cash flows provided by (used in) financing activities:Net increase (decrease) in deposits
    
    
    3,781
    
    
    
    (10,548
    )Proceeds from Federal Home Loan Bank advances and other borrowings
    
    
    20,221
    
    
    
    64,397Repayment of Federal Home Loan Bank advances and other borrowings
    
    
    (45,010
    )
    
    
    (43,386
    )Decrease in advances by borrowers for taxes and insurance
    
    
    (1,040
    )
    
    
    (869
    )Net cash provided by (used in) financing activities
    
    
    (22,048
    )
    
    
    9,594Increase (decrease) in cash and cash equivalents
    
    
    32,663
    
    
    
    (9,859
    )Cash and cash equivalents at beginning of period
    
    
    29,114
    
    
    
    38,153Cash and cash equivalents at end of period
    
    $
    61,777
    
    
    $
    28,294Supplemental disclosure of cash flow information:Cash paid during the period for:Interest on deposits and borrowings
    
    $
    2,967
    
    
    $
    4,283Income taxes paid
    
    
    
    
    
    
    Transfers from loans to real estate acquired through foreclosure
    
    
    1,300
    
    
    
    1,389
  7




---



##### Table of Contents



1.
    
    Basis of Presentation
  2.
    
    Principles of Consolidation
   3.
    
    Critical Accounting Policies
    Allowance for Loan Losses
   8




---



##### Table of Contents



Mortgage Servicing Rights
     9




---



##### Table of Contents



Deferred Income Taxes
  4.
    
    Earnings Per Share
  For the three months endedMarch 31,(in thousands, except per share information)
    
    2011
    
    
    2010BASIC:Net earnings
    
    $
    652
    
    
    $
    129Weighted average common shares outstanding
    
    
    7,206
    
    
    
    7,206Earnings per share  Basic
    
    $
    0.09
    
    
    $
    0.02DILUTED:Net earnings
    
    $
    652
    
    
    $
    129Weighted average common shares outstanding
    
    
    7,206
    
    
    
    7,206Dilutive effect of stock options
    
    
    
    
    
    
    33Total common shares and dilutive potential common shares
    
    
    7,206
    
    
    
    7,239Earnings per share  Diluted
    
    $
    0.09
    
    
    $
    0.02
  5.
    
    Stock Option Plans
   10




---



##### Table of Contents



2011
    
    
    2010Fair value, calculated
    
    $
    1.50
    
    
    $
    1.65Exercise Price
    
    $
    2.15
    
    
    $
    2.51Risk-free interest rate
    
    
    3.58
    %
    
    
    3.61
    %Expected stock price volatility
    
    
    57.30
    %
    
    
    51.62
    %Expected dividend yield
    
    
    
    
    
    
    Expected Life
    
    10 years
    
    
    10 years
  Three Months ended
    
    
    Year endedMarch 31, 2011
    
    
    December 31, 2010Weighted-
    
    
    
    
    
    
    Weighted-average
    
    
    
    
    
    
    averageexercise
    
    
    
    
    
    
    exerciseShares
    
    
    price
    
    
    Shares
    
    
    priceOutstanding at beginning of period
    
    
    463,642
    
    
    $
    5.84
    
    
    
    260,833
    
    
    $
    10.59Granted
    
    
    156,538
    
    
    
    2.15
    
    
    
    260,729
    
    
    
    2.51Exercised
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    (13,939
    )
    
    
    3.07
    
    
    
    (57,920
    )
    
    
    12.21Expired
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Outstanding at end of period
    
    
    606,241
    
    
    $
    4.95
    
    
    
    463,642
    
    
    $
    5.84Options exercisable at period end
    
    
    334,921
    
    
    $
    6.99
    
    
    
    257,037
    
    
    $
    8.24Weighted-average fair value of
options granted during the year
    
    
    
    
    
    $
    1.50
    
    
    
    
    
    
    $
    1.65
  Options Outstanding
    
    
    Options ExercisableWeighted-Average
    
    
    Weighted-
    
    
    
    
    
    
    Weighted-Remaining
    
    
    Average
    
    
    
    
    
    
    AverageNumber
    
    
    Contractual
    
    
    Exercise
    
    
    Number
    
    
    ExerciseRange of Exercise Prices
    
    Outstanding
    
    
    Life (Years)
    
    
    Price
    
    
    Exercisable
    
    
    Price$2.15  $2.51
    
    
    472,257
    
    
    
    9.05
    
    
    $
    2.39
    
    
    
    204,877
    
    
    $
    2.45$8.92
    
    
    21,135
    
    
    
    6.81
    
    
    
    8.92
    
    
    
    17,195
    
    
    
    8.92$11.36  $14.16
    
    
    56,974
    
    
    
    4.39
    
    
    
    13.44
    
    
    
    56,974
    
    
    
    13.44$16.13  $17.17
    
    
    55,875
    
    
    
    3.15
    
    
    
    16.45
    
    
    
    55,875
    
    
    
    16.45606,241
    
    
    
    7.99
    
    
    $
    4.95
    
    
    
    334,921
    
    
    $
    6.99
 6.
    
    Fair Value
   11




---



##### Table of Contents



Cash and Cash Equivalents
 Investment Securities
 Loans Held for Sale:
 Loans Receivable
 Federal Home Loan Bank Stock
 Accrued Interest Receivable and Payable:
 Deposits
 Advances from the Federal Home Loan Bank
 Repurchase Agreements:
 Subordinated Debentures:
 Advances by Borrowers for Taxes and Insurance
  12




---



##### Table of Contents



March 31, 2011
    
    
    December 31, 2010Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fairvalue
    
    
    value
    
    
    value
    
    
    value(In thousands)Financial assetsCash and cash equivalents
    
    $
    61,777
    
    
    $
    61,777
    
    
    $
    29,114
    
    
    $
    29,114Investment securities available for sale
    
    
    13,402
    
    
    
    13,402
    
    
    
    30,768
    
    
    
    30,768Investment securities held to maturity
    
    
    3,804
    
    
    
    3,865
    
    
    
    3,948
    
    
    
    3,993Loans held for sale
    
    
    1,249
    
    
    
    1,270
    
    
    
    2,208
    
    
    
    2,254Loans receivable
    
    
    648,090
    
    
    
    623,653
    
    
    
    667,840
    
    
    
    643,646Federal Home Loan Bank stock
    
    
    9,888
    
    
    
    9,888
    
    
    
    29,888
    
    
    
    29,888Accrued interest receivable
    
    
    3,218
    
    
    
    3,218
    
    
    
    3,521
    
    
    
    3,521Financial liabilitiesDeposits
    
    $
    655,597
    
    
    $
    642,387
    
    
    $
    651,816
    
    
    $
    642,893Advances from the Federal Home Loan Bank
    
    
    68,842
    
    
    
    72,869
    
    
    
    92,934
    
    
    
    97,711Repurchase agreements
    
    
    5,833
    
    
    
    5,833
    
    
    
    6,530
    
    
    
    6,530Subordinated debentures
    
    
    5,000
    
    
    
    4,860
    
    
    
    5,000
    
    
    
    4,839Advances by borrowers for taxes and insurance
    
    
    1,373
    
    
    
    1,373
    
    
    
    2,413
    
    
    
    2,413Accrued interest payable
    
    
    1,671
    
    
    
    1,671
    
    
    
    1,646
    
    
    
    1,646
       13




---



##### Table of Contents



Fair Value Measurements at Reporting Date Using(in thousands)
    
    Balance
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3March 31, 2011Securities available for sale:U.S. government sponsored enterprises
    
    $
    11,071
    
    
    $
    
    
    
    $
    11,071
    
    
    $
    Corporate equity securities
    
    
    98
    
    
    
    
    
    
    
    98
    
    
    
    Mortgage-backed securities
    
    
    2,233
    
    
    
    
    
    
    
    2,233
    
    
    
    December 31, 2010Securities available for sale:U.S. government sponsored enterprises
    
    $
    9,579
    
    
    $
    
    
    
    $
    9,579
    
    
    $
    Corporate equity securities
    
    
    83
    
    
    
    
    
    
    
    83
    
    
    
    Mortgage-backed securities
    
    
    38,218
    
    
    
    
    
    
    
    38,218
    
    
    
    
  Fair Value Measurements at Reporting Date Using(in thousands)
    
    Balance
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3March 31, 2011Impaired loans
    
    $
    18,506
    
    
    
    
    
    
    
    
    
    
    $
    18,506Real estate
acquired through
foreclosure
    
    
    10,308
    
    
    
    
    
    
    
    
    
    
    
    10,308December 31, 2010Impaired loans
    
    
    35,571
    
    
    
    
    
    
    
    
    
    
    
    35,571Real estate
acquired through
foreclosure
    
    
    10,373
    
    
    
    
    
    
    
    
    
    
    
    10,096
   7.
    
    Allowance for Loan Losses
   14




---



##### Table of Contents



Commercial &Multi-
    
    
    Land, Farm
    
    
    
    
    
    
    Non-(in thousands)
    
    Construction
    
    
    Consumer
    
    
    Family
    
    
    & Ag Loans
    
    
    Residential
    
    
    Residential
    
    
    C&I
    
    
    TotalAllowance for credit losses:Beginning balance December 31, 2010
    
    $
    166
    
    
    $
    246
    
    
    $
    2,860
    
    
    $
    849
    
    
    $
    8,050
    
    
    $
    3,638
    
    
    $
    1,061
    
    
    $
    16,870Charge-offs
    
    
    
    
    
    
    (2
    )
    
    
    
    
    
    
    
    
    
    
    (710
    )
    
    
    (266
    )
    
    
    (9
    )
    
    
    (987
    )Recoveries
    
    
    
    
    
    
    1
    
    
    
    6
    
    
    
    195
    
    
    
    135
    
    
    
    88
    
    
    
    89
    
    
    
    514Provision (1)
    
    
    (2
    )
    
    
    33
    
    
    
    (511
    )
    
    
    (262
    )
    
    
    487
    
    
    
    1,968
    
    
    
    (700
    )
    
    
    1,013Ending balance March 31, 2011
    
    $
    164
    
    
    $
    278
    
    
    $
    2,355
    
    
    $
    782
    
    
    $
    7,962
    
    
    $
    5,428
    
    
    $
    441
    
    
    $
    17,410Ending balanceIndividually evaluated for impairment
    
    $
    
    
    
    $
    
    
    
    $
    197
    
    
    $
    
    
    
    $
    867
    
    
    $
    3,230
    
    
    $
    28
    
    
    $
    4,322Collectively evaluated for impairment
    
    $
    164
    
    
    $
    278
    
    
    $
    2,158
    
    
    $
    782
    
    
    $
    7,095
    
    
    $
    2,198
    
    
    $
    413
    
    
    $
    13,088Portfolio balances:Collectively evaluated for impairment
    
    $
    34,720
    
    
    $
    3,644
    
    
    
    74,523
    
    
    
    13,724
    
    
    
    355,182
    
    
    
    138,583
    
    
    
    28,064
    
    
    
    648,440Individually evaluated for impairmentWith no related allowance
    
    $
    
    
    
    $
    
    
    
    $
    779
    
    
    $
    508
    
    
    $
    3,505
    
    
    $
    111
    
    
    $
    16
    
    
    $
    4,919With related allowance
    
    $
    
    
    
    $
    
    
    
    $
    1,108
    
    
    $
    329
    
    
    $
    2,815
    
    
    $
    9,269
    
    
    $
    66
    
    
    $
    13,587Ending balance
    
    $
    34,720
    
    
    $
    3,644
    
    
    $
    76,410
    
    
    $
    14,561
    
    
    $
    361,502
    
    
    $
    147,963
    
    
    $
    28,146
    
    
    $
    666,946
 (1)
    
    Reclassification of portfolio balance between C & I and Commercial & Non Residential created a portion of the change in provision for the current period.  15




---



##### Table of Contents



Commercial &Multi-
    
    
    Land, Farm
    
    
    
    
    
    
    Non-(in thousands)
    
    Construction
    
    
    Consumer
    
    
    Family
    
    
    & Ag Loans
    
    
    Residential
    
    
    Residential
    
    
    C&I
    
    TotalAllowance for credit losses:Beginning balance January 1, 2010
    
    $
    338
    
    
    $
    98
    
    
    $
    731
    
    
    $
    628
    
    
    $
    10,519
    
    
    $
    3,148
    
    
    $
    637
    
    
    $
    16,099Charge-offs
    
    
    (482
    )
    
    
    (28
    )
    
    
    (1,535
    )
    
    
    (2,283
    )
    
    
    (7,530
    )
    
    
    (3,688
    )
    
    
    (3,399
    )
    
    
    (18,945
    )Recoveries
    
    
    39
    
    
    
    9
    
    
    
    103
    
    
    
    247
    
    
    
    490
    
    
    
    157
    
    
    
    211
    
    
    
    1,256Provision
    
    
    271
    
    
    
    167
    
    
    
    3,561
    
    
    
    2,257
    
    
    
    4,571
    
    
    
    4,021
    
    
    
    3,612
    
    
    
    18,460Ending balance December 31, 2010
    
    $
    166
    
    
    $
    246
    
    
    $
    2,860
    
    
    $
    849
    
    
    $
    8,050
    
    
    $
    3,638
    
    
    $
    1,061
    
    
    $
    16,870Ending balanceIndividually evaluated for impairment
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    256
    
    
    $
    1,171
    
    
    $
    170
    
    
    $
    1,597Collectively evaluated for impairment
    
    $
    166
    
    
    $
    246
    
    
    $
    2,860
    
    
    $
    849
    
    
    $
    7,794
    
    
    $
    2,467
    
    
    $
    891
    
    
    $
    15,273Portfolio balances:Collectively evaluated for impairment
    
    $
    26,530
    
    
    $
    3,828
    
    
    $
    71,162
    
    
    $
    10,905
    
    
    $
    369,755
    
    
    $
    155,326
    
    
    $
    27,607
    
    
    $
    665,113Individually evaluated for impairmentWith no related allowance
    
    
    
    
    
    
    
    
    
    
    3,180
    
    
    
    1,549
    
    
    
    3,122
    
    
    
    4,122
    
    
    
    706
    
    
    
    12,679With related allowance
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,706
    
    
    
    4,503
    
    
    
    630
    
    
    
    7,839Ending balance
    
    $
    26,530
    
    
    $
    3,828
    
    
    $
    74,342
    
    
    $
    12,454
    
    
    $
    375,583
    
    
    $
    163,951
    
    
    $
    28,943
    
    
    $
    685,631
    Non Accrual
    
    
    Non Accrual(in thousands)
    
    March 31, 2011
    
    
    December 31, 2010Construction
    
    $
    23
    
    
    $
    1,791Land, Farmland, Ag Loans
    
    
    1,052
    
    
    
    Residential
    
    
    20,198
    
    
    
    21,498Commercial
    
    
    9,032
    
    
    
    7,717Consumer
    
    
    130
    
    
    
    39Commercial and industrial
    
    
    41
    
    
    
    706Multi Family
    
    
    1,887
    
    
    
    2,028Total
    
    $
    32,363
    
    
    $
    33,779
  16




---



##### Table of Contents



Loans 60- 89 or
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    AccruingLoans 30-
    
    
    More
    
    
    Loans 90+
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Loans 90March 31, 2011
    
    59 Days
    
    
    Days Past
    
    
    Days Past
    
    
    Total Past
    
    
    
    
    
    
    Total
    
    
    Days Past(in thousands)
    
    Past Due
    
    
    Due
    
    
    Due
    
    
    Due
    
    
    Current
    
    
    Loans
    
    
    DueConstruction
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    34,720
    
    
    $
    34,720
    
    
    $
    Land, Farmland, Ag Loans
    
    
    73
    
    
    
    
    
    
    
    859
    
    
    
    932
    
    
    
    13,629
    
    
    
    14,561
    
    
    
    Residential / prime
    
    
    563
    
    
    
    443
    
    
    
    5,980
    
    
    
    6,986
    
    
    
    267,173
    
    
    
    274,159
    
    
    
    Residential / subprime
    
    
    4,870
    
    
    
    2,399
    
    
    
    9,621
    
    
    
    16,890
    
    
    
    70,453
    
    
    
    87,343
    
    
    
    Commercial
    
    
    915
    
    
    
    2,798
    
    
    
    4,479
    
    
    
    8,192
    
    
    
    139,771
    
    
    
    147,963
    
    
    
    Consumer
    
    
    109
    
    
    
    
    
    
    
    115
    
    
    
    224
    
    
    
    3,420
    
    
    
    3,644Commercial and industrial
    
    
    90
    
    
    
    66
    
    
    
    16
    
    
    
    172
    
    
    
    27,974
    
    
    
    28,146
    
    
    
    Multi Family
    
    
    
    
    
    
    342
    
    
    
    1,545
    
    
    
    1,887
    
    
    
    74,523
    
    
    
    76,410
    
    
    
    Total
    
    $
    6,620
    
    
    $
    6,048
    
    
    $
    22,615
    
    
    $
    35,283
    
    
    $
    631,663
    
    
    $
    666,946
    
    
    $
    
 Loans 60- 89 or
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    AccruingLoans 30-
    
    
    More
    
    
    Loans 90+
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Loans 90December 31, 2010
    
    59 Days
    
    
    Days Past
    
    
    Days Past
    
    
    Total Past
    
    
    
    
    
    
    Total
    
    
    Days Past(in thousands)
    
    Past Due
    
    
    Due
    
    
    Due
    
    
    Due
    
    
    Current
    
    
    Loans
    
    
    DueConstruction
    
    $
    75
    
    
    $
    
    
    
    $
    1,057
    
    
    $
    1,132
    
    
    $
    25,398
    
    
    $
    26,530
    
    
    $
    Land, Farmland, Ag Loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,454
    
    
    
    12,454
    
    
    
    Residential / prime
    
    
    624
    
    
    
    343
    
    
    
    5,366
    
    
    
    6,333
    
    
    
    280,266
    
    
    
    286,599
    
    
    
    Residential / subprime
    
    
    5,077
    
    
    
    1,451
    
    
    
    11,119
    
    
    
    17,647
    
    
    
    71,337
    
    
    
    88,984
    
    
    
    Commercial
    
    
    
    
    
    
    2,766
    
    
    
    3,301
    
    
    
    6,067
    
    
    
    157,884
    
    
    
    163,951
    
    
    
    Consumer
    
    
    36
    
    
    
    3
    
    
    
    18
    
    
    
    57
    
    
    
    3,771
    
    
    
    3,828Commercial and industrial
    
    
    85
    
    
    
    
    
    
    
    706
    
    
    
    791
    
    
    
    28,152
    
    
    
    28,943
    
    
    
    Multi Family
    
    
    85
    
    
    
    
    
    
    
    1,685
    
    
    
    1,770
    
    
    
    72,572
    
    
    
    74,342
    
    
    
    Total
    
    $
    5,982
    
    
    $
    4,563
    
    
    $
    23,252
    
    
    $
    33,797
    
    
    $
    651,834
    
    
    $
    685,631
    
    
    $
    
 
 Impaired loans
  17




---



##### Table of Contents




 
 
 
 
 
    
    Camco personnel property inspections combined with original appraisal review
    
    Broker price opinions
    
    Various on-line fair market value estimations programs (i.e. Freddie Mac, Fannie
Mae, etc).
  18




---



##### Table of Contents



Unpaid
    
    
    
    
    
    
    Average
    
    
    InterestRecorded
    
    
    Principal
    
    
    Related
    
    
    Recorded
    
    
    IncomeMarch 31, 2011
    
    Investment
    
    
    Balance
    
    
    Allowance
    
    
    Investment
    
    
    RecognizedWith no related allowance recorded:Construction
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Land, Farmland, Ag Loans
    
    
    508
    
    
    
    999
    
    
    
    
    
    
    
    509
    
    
    
    19Residential
    
    
    3,505
    
    
    
    5,087
    
    
    
    
    
    
    
    3,518
    
    
    
    46Commercial
    
    
    111
    
    
    
    111
    
    
    
    
    
    
    
    123
    
    
    
    Consumer
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial and industrial
    
    
    16
    
    
    
    217
    
    
    
    
    
    
    
    36
    
    
    
    Multi Family
    
    
    779
    
    
    
    2,249
    
    
    
    
    
    
    
    821
    
    
    
    Total
    
    $
    4,919
    
    
    $
    8,663
    
    
    $
    
    
    
    $
    5,007
    
    
    $
    65With a related specific allowance
recorded:Construction
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Land, Farmland, Ag Loans
    
    
    329
    
    
    
    444
    
    
    
    
    
    
    
    328
    
    
    
    Residential
    
    
    2,815
    
    
    
    3,506
    
    
    
    867
    
    
    
    2,907
    
    
    
    3Commercial
    
    
    9,269
    
    
    
    12,177
    
    
    
    3,230
    
    
    
    9,286
    
    
    
    28Consumer
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial and industrial
    
    
    66
    
    
    
    66
    
    
    
    28
    
    
    
    66
    
    
    
    Multi Family
    
    
    1,108
    
    
    
    1,624
    
    
    
    197
    
    
    
    1,108
    
    
    
    Total
    
    $
    13,587
    
    
    $
    17,817
    
    
    $
    4,322
    
    
    $
    13,695
    
    
    $
    31
 Unpaid
    
    
    
    
    
    
    Average
    
    
    InterestRecorded
    
    
    Principal
    
    
    Related
    
    
    Recorded
    
    
    IncomeDecember 31, 2010
    
    Investment
    
    
    Balance
    
    
    Allowance
    
    
    Investment
    
    
    RecognizedWith no related allowance recorded:Construction
    
    $
    1,549
    
    
    $
    5,558
    
    
    $
    
    
    
    $
    3,389
    
    
    $
    Land, Farmland, Ag Loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Residential
    
    
    3,122
    
    
    
    4,854
    
    
    
    
    
    
    
    3,866
    
    
    
    19Commercial
    
    
    4,122
    
    
    
    8,239
    
    
    
    
    
    
    
    5,765
    
    
    
    6Consumer
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial and industrial
    
    
    706
    
    
    
    1,208
    
    
    
    
    
    
    
    1,035
    
    
    
    11Multi Family
    
    
    3,180
    
    
    
    5,166
    
    
    
    
    
    
    
    3,786
    
    
    
    3Total
    
    $
    12,679
    
    
    $
    25,025
    
    
    $
    
    
    
    $
    17,841
    
    
    $
    39With a related specific allowance
recorded:Construction
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Land, Farmland, Ag Loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Residential
    
    
    2,706
    
    
    
    3,306
    
    
    
    256
    
    
    
    3,078
    
    
    
    Commercial
    
    
    4,503
    
    
    
    4,521
    
    
    
    1,171
    
    
    
    4,589
    
    
    
    131Consumer
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial and industrial
    
    
    630
    
    
    
    630
    
    
    
    170
    
    
    
    383
    
    
    
    Multi Family
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    7,839
    
    
    $
    8,457
    
    
    $
    1,597
    
    
    $
    8,050
    
    
    $
    131
  19




---



##### Table of Contents




    
    Uncriticized Assets
  
    
    Special Mention Assets (Grade 5)
  
    
    Substandard Assets (Grade 6)
   
 
 
 
 
 
 
 
    
    Doubtful Assets (Grade 7)
  
    
    Loss Assets (Grade 8)
    20




---



##### Table of Contents



(Dollars in Thousands)SpecialMarch 31, 2011
    
    Pass
    
    
    Watch
    
    
    Mention
    
    
    Substandard
    
    
    TotalConstruction
    
    $
    21,129
    
    
    $
    13,568
    
    
    $
    
    
    
    $
    23
    
    
    $
    34,720Land, Farmland, Ag Loans
    
    
    11,772
    
    
    
    259
    
    
    
    329
    
    
    
    2,201
    
    
    
    14,561Commercial
    
    
    108,773
    
    
    
    12,931
    
    
    
    3,689
    
    
    
    22,569
    
    
    
    147,962Commercial and industrial
    
    
    22,313
    
    
    
    5,076
    
    
    
    156
    
    
    
    601
    
    
    
    28,146Multi Family
    
    
    62,939
    
    
    
    6,931
    
    
    
    3,505
    
    
    
    3,035
    
    
    
    76,410Total
    
    $
    226,926
    
    
    $
    38,765
    
    
    $
    7,679
    
    
    $
    28,429
    
    
    $
    301,799
 SpecialDecember 31, 2010
    
    Pass
    
    
    Watch
    
    
    Mention
    
    
    Substandard
    
    
    TotalConstruction
    
    $
    12,743
    
    
    $
    10,514
    
    
    $
    329
    
    
    $
    2,944
    
    
    $
    26,530Land, Farmland, Ag Loans
    
    
    11,822
    
    
    
    632
    
    
    
    
    
    
    
    
    
    
    
    12,454Commercial
    
    
    124,478
    
    
    
    11,982
    
    
    
    6,158
    
    
    
    21,333
    
    
    
    163,951Commercial and industrial
    
    
    22,488
    
    
    
    4,416
    
    
    
    165
    
    
    
    1,874
    
    
    
    28,943Multi Family
    
    
    66,074
    
    
    
    1,861
    
    
    
    3,227
    
    
    
    3,180
    
    
    
    74,342Total
    
    $
    237,605
    
    
    $
    29,405
    
    
    $
    9,879
    
    
    $
    29,331
    
    
    $
    306,220
  
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of
Operation
 Forward Looking Statements
  
    
    anticipated changes in industry conditions created by state and federal legislation and
regulations;
 
    
    anticipated changes in general interest rates and the impact of future interest rate
changes on our profitability, capital adequacy and the fair value of our financial assets
and liabilities;
 
    
    retention of our existing customer base and our ability to attract new customers;
 
    
    the development of new products and services and their success in the marketplace;
 
    
    the adequacy of the allowance for loan losses; and
 
    
    statements regarding our anticipated loan and deposit account growth, expense levels,
liquidity and capital resources and projections of earnings.
  
    
    competition in the industry and markets in which we operate;
 
    
    changes in general interest rates;
 
    
    rapid changes in technology affecting the financial services industry;
 
    
    changes in government regulation; and
 
    
    general economic and business conditions
  21




---



##### Table of Contents



Overview
   
    
    Volatile equity markets that declined significantly
 
    
    Stress on the banking industry with significant financial assistance to many financial
institutions, extensive regulatory and congressional scrutiny and regulatory requirements
 
    
    Low interest rate environment particularly given the government involvement in the
financial markets, and
 
    
    Continued high levels of unemployment nationally and in our local markets
       22




---



##### Table of Contents



Discussion of Financial Condition Changes from December 31, 2010 to March 31, 2011
         23




---



##### Table of Contents



March 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,(dollars in thousands)
    
    2011
    
    
    2010
    
    
    2009
    
    
    2008
    
    
    2007Total nonperforming loans
    
    
    32,363
    
    
    
    33,779
    
    
    
    36,449
    
    
    
    53,528
    
    
    
    25,515Other real estate owned
    
    
    10,308
    
    
    
    10,096
    
    
    
    9,660
    
    
    
    5,841
    
    
    
    5,034Total nonperforming assets
    
    $
    42,671
    
    
    $
    43,875
    
    
    $
    46,109
    
    
    $
    59,369
    
    
    $
    30,549Allowance for loan losses
    
    $
    17,410
    
    
    $
    16,870
    
    
    $
    16,099
    
    
    $
    15,747
    
    
    $
    6,623Nonperforming loans as a percent of total net loans
    
    
    4.85
    %
    
    
    5.04
    %
    
    
    5.40
    %
    
    
    6.91
    %
    
    
    3.13
    %Nonperforming assets to total assets
    
    
    5.39
    %
    
    
    5.38
    %
    
    
    5.47
    %
    
    
    5.93
    %
    
    
    2.99
    %Allowances for loan losses as a percent of
nonperforming loans
    
    
    53.80
    %
    
    
    49.9
    %
    
    
    44.2
    %
    
    
    29.4
    %
    
    
    26.0
    %Memo section:Troubled debt restructuringsLoans and leases restructured and in compliance
with modified terms
    
    $
    2,319
    
    
    $
    7,122
    
    
    $
    16,645
    
    
    $
    11,440
    
    
    $
    Loans and leases restructured and not in
compliance with modified terms
    
    $
    7,787
    
    
    $
    9,276
    
    
    $
    4,783
    
    
    $
    12,882
    
    
    $
    
     March 31, 2011
    
    
    December 31, 2010
    
    
    Change(Dollars in thousands)
    
    Balance
    
    
    Rate
    
    
    Balance
    
    
    Rate
    
    
    Balance
    
    
    RateNoninterest-bearing demand
    
    $
    49,257
    
    
    
    0.00
    %
    
    $
    46,597
    
    
    
    0.00
    %
    
    $
    2,660
    
    
    
    .00Interest-bearing demand
    
    
    67,008
    
    
    
    0.24
    
    
    
    65,679
    
    
    
    0.30
    
    
    
    1,329
    
    
    
    (.06
    )Money market
    
    
    103,673
    
    
    
    0.69
    
    
    
    96,294
    
    
    
    0.69
    
    
    
    7,379
    
    
    
    .00Savings
    
    
    40,840
    
    
    
    0.25
    
    
    
    38,665
    
    
    
    0.25
    
    
    
    2,175
    
    
    
    .00Certificates of deposit  retail
    
    
    382,832
    
    
    
    1.91
    
    
    
    392,098
    
    
    
    1.93
    
    
    
    (9,266
    )
    
    
    (.02
    )Certificates of deposit  brokered
    
    
    11,987
    
    
    
    3.60
    
    
    
    12,483
    
    
    
    3.60
    
    
    
    (496
    )
    
    
    .00Total deposits
    
    $
    655,597
    
    
    
    1.33
    %
    
    $
    651,816
    
    
    
    1.38
    %
    
    $
    3,781
    
    
    
    (.09
    )
  24




---



##### Table of Contents



Comparison of Results of Operations for the Three Months Ended March 31, 2011 and 2010
   Net Interest Income
   25




---



##### Table of Contents



2011
    
    
    2010Average
    
    
    Interest
    
    
    Average
    
    
    Average
    
    
    Interest
    
    
    AverageThree Months Ended March 31,
    
    outstanding
    
    
    earned
    
    
    yield/
    
    
    outstanding
    
    
    earned
    
    
    yield/(Dollars in thousands)
    
    balance
    
    
    / paid
    
    
    rate
    
    
    balance
    
    
    / paid
    
    
    rateInterest-earning assets:Loans receivable (1)
    
    $
    640,908
    
    
    $
    8,901
    
    
    
    5.56
    %
    
    $
    657,081
    
    
    $
    9,280
    
    
    
    5.65
    %Securities
    
    
    29,613
    
    
    
    355
    
    
    
    4.80
    %
    
    
    55,294
    
    
    
    578
    
    
    
    4.18
    %FHLB stock
    
    
    14,888
    
    
    
    339
    
    
    
    9.11
    %
    
    
    29,888
    
    
    
    339
    
    
    
    4.54
    %Other Interest-bearing accounts
    
    
    43,783
    
    
    
    7
    
    
    
    .06
    %
    
    
    26,726
    
    
    
    1
    
    
    
    .01
    %Total interest-earning assets
    
    
    729,192
    
    
    
    9,602
    
    
    
    5.27
    %
    
    
    768,989
    
    
    
    10,198
    
    
    
    5.30
    %Noninterest-earning assets (2)
    
    
    80,613
    
    
    
    
    
    
    
    
    
    
    
    84,035Total average assets
    
    $
    809,805
    
    
    
    
    
    
    
    
    
    
    $
    853,024Interest-bearing liabilities:Checking and Money Market Deposits
    
    
    604,208
    
    
    
    2,189
    
    
    
    1.45
    %
    
    
    612,881
    
    
    
    2,945
    
    
    
    1.92
    %Certificates of DepositSavingsFHLB advances and other
    
    
    97,342
    
    
    
    803
    
    
    
    3.30
    %
    
    
    124,617
    
    
    
    997
    
    
    
    3.20
    %Total interest-bearing liabilities
    
    
    701,550
    
    
    
    2,992
    
    
    
    1.71
    %
    
    
    737,498
    
    
    
    3,942
    
    
    
    2.14
    %Noninterest-bearing deposits
    
    
    50,613
    
    
    
    
    
    
    
    
    
    
    
    40,192Noninterest-bearing liabilities
    
    
    11,392
    
    
    
    
    
    
    
    
    
    
    
    14,670Total average liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    792,360Total average shareholders equity
    
    
    46,250
    
    
    
    
    
    
    
    
    
    
    
    60,664Total liabilities and shareholders equity
    
    $
    809,805
    
    
    
    
    
    
    
    
    
    
    $
    853,024Net interest income/Interest rate spread
    
    
    
    
    
    $
    6,610
    
    
    
    3.56
    %
    
    
    
    
    
    $
    6,256
    
    
    
    3.16
    %Net interest margin (3)
    
    
    
    
    
    
    
    
    
    
    3.63
    %
    
    
    
    
    
    
    
    
    
    
    3.25
    %Average interest-earning assets to
average interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    103.94
    %
    
    
    
    
    
    
    
    
    
    
    104.27
    %
 (1)
    
    Includes loans held for sale. Loan fees are immaterial.(2)
    
    Includes nonaccrual loans, mortgage servicing rights and allowance for loan losses(3)
    
    Net interest income as a percent of average interest-earning assets   nd
  26




---



##### Table of Contents



Provision for Losses on Loans
     Other Income
  General, Administrative and Other Expense
     27




---



##### Table of Contents



Federal Income Taxes
   Additional Capital
  Liquidity and Capital Resources
    28




---



##### Table of Contents



29




---



##### Table of Contents



Payments due by periodLessthan
    
    
    1 - 3
    
    
    3 - 5
    
    
    More than1 year
    
    
    Years
    
    
    years
    
    
    5 years
    
    
    Total(In thousands)Contractual obligations:Operating lease obligations
    
    $
    268
    
    
    $
    471
    
    
    $
    411
    
    
    $
    28
    
    
    $
    1,178Advances from the FHLB
    
    
    5,000
    
    
    
    37,261
    
    
    
    20,299
    
    
    
    6,282
    
    
    
    68,842Repurchase agreements
    
    
    5,833
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,833Certificates of deposit
    
    
    212,108
    
    
    
    137,466
    
    
    
    45,573
    
    
    
    
    
    
    
    395,147Subordinated debentures (1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,000
    
    
    
    5,000Ohio equity funds for housing
    
    
    779
    
    
    
    204
    
    
    
    290
    
    
    
    137
    
    
    
    1,410Amount of commitments expiring per period:Commitments to originate loans:Revolving open-end lines secured by 1-4 residential properties
    
    $
    43,433
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    43,433Not secured by real estate
    
    
    17,504
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,504One- to four-family construction loan
    
    
    632
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    632Commercial real estate, other construction loan and land
development
    
    
    35,835
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    35,835Commercial and industrial and other unused commitments
    
    
    2,447
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,447Letters of credit
    
    
    397
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    397Total contractual obligations
    
    $
    324,236
    
    
    $
    175,402
    
    
    $
    66,573
    
    
    $
    11,447
    
    
    $
    577,658
 (1)
    
    The subordinated debentures are redeemable, at Camcos option.       30




---



##### Table of Contents



To be well-capitalized underFor capital
    
    
    prompt correctiveActual
    
    
    Adequacy purposes
    
    
    action provisionsAmount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio(Dollars in thousands)Total capital to risk-weighted assets:Camco Financial Corporation
    
    $
    58,450
    
    
    
    9.32
    %
    
    
    ≥      $50,150
    
    
    
    ≥      8.0
    %
    
    
    ≥        $62,688
    
    
    
    10.0
    %Advantage Bank
    
    $
    55,326
    
    
    
    8.84
    %
    
    
    ≥      $50,043
    
    
    
    ≥      8.0
    %
    
    
    ≥        $62,553
    
    
    
    10.0
    %Tier I capital to risk-weighted assets:Camco Financial Corporation
    
    $
    50,512
    
    
    
    8.06
    %
    
    
    ≥      $25,075
    
    
    
    ≥     4.0
    %
    
    
    ≥        $37,613
    
    
    
    6.0
    %Advantage Bank
    
    $
    47,388
    
    
    
    7.58
    %
    
    
    ≥      $25,022
    
    
    
    ≥     4.0
    %
    
    
    ≥        $37,532
    
    
    
    6.0
    %Tier I leverage to average assets:Camco Financial Corporation
    
    $
    50,512
    
    
    
    6.18
    %
    
    
    ≥      $32,682
    
    
    
    ≥      4.0
    %
    
    
    ≥        $40,853
    
    
    
    5.0
    %Advantage Bank
    
    $
    47,388
    
    
    
    5.82
    %
    
    
    ≥      $32,551
    
    
    
    ≥      4.0
    %
    
    
    ≥        $40,689
    
    
    
    5.0
    %
        31




---



##### Table of Contents



Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
  
 Item 4:
    
    Controls and Procedures
  
 PART II
 ITEM 1.
    
    Legal Proceedings
  ITEM 1A.
    
    Risk Factors
  ITEM 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
 (a)
    
    Not applicable
 (b)
    
    Not applicable
 (c)
    
    Not applicable
 ITEM 3.
    
    Defaults Upon Senior Securities
  ITEM 4.
    
    (Removed and Reserved)
 ITEM 5.
    
    Other Information
 Not applicable
  32




---



##### Table of Contents



ITEM 6.
    
    Exhibits
 Exhibit 3(i)
    
    Third Restated Certificate of Incorporation of Camco (2003 Form 10K)Exhibit 3(ii)
    
    2003 Amended and Restated by-Laws of Camco (2006 Form 10-K)Exhibit 10(i)
    
    Form of Incentive Stock Option Award Agreement. Incorporated by reference to Exhibit
10.1 of Camcos Current Report on Form 8-K filed on March 10, 2011 (March 10 8-K)Exhibit 10(ii)
    
    Form of Nonqualified Stock Option Award Agreement. Incorporated by Reference to
Exhibit 10.2 of Camcos March 10 8-K)Exhibit 10(iii)
    
    Change of Control Agreement with John E. Kirksey, Incorporated by Reference to Exhibit
10 of Camcos Current Report on Form 8-K filed on March 30, 2011Exhibit 31(i)
    
    Section 302 certification by
Chief Executive OfficerExhibit 31(ii)
    
    Section 302 Certification by
Chief Financial OfficerExhibit 32(i)
    
    Section 1350 certification by
Chief Executive OfficerExhibit 32(ii)
    
    Section 1350 certification by
Chief Financial Officer
  33




---



##### Table of Contents



SIGNATURES
  Date: May 13, 2011
    By:
    /s/ James E. HustonJames E. HustonChief Executive OfficerDate: May 13, 2011
    By:
    /s/ John E. KirkseyJohn E. KirkseyChief Financial Officer  34