##### 



SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 þ
    
    ANNUAL REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2006
 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)6901 Glenn Highway, Cambridge, Ohio
    
    43725(Address of principal executive offices)
    
    (Zip Code)
   Common Stock, $1 par value per share
    
    The Nasdaq Stock Market(Title of Each Class)
    
    (Name of exchange on which registered)
 Common Stock, $1 par value per share
 o þ
 o þ
 þ o
 þ
  o þ o
 o þ




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##### 



TABLE OF CONTENTS  PART IItem 1. BusinessItem 1A. Risk FactorsItem 1B. Unresolved Staff CommentsItem 2. PropertiesItem 3. Legal ProceedingsItem 4. Submission of Matters to a Vote of Security HoldersPART IIItem 5. Market for Registrants Common Stock, Related Stockholder Matters and Issuer Purchases of Common StockItem 6. Selected Consolidated Financial DataItem 7. Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 7A. Quantitative and Qualitative Disclosures About Market RiskItem 8. Financial Statements and Supplementary DataItem 9. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureItem 9A.Controls and ProceduresItem 9B. Other InformationPART IIIItem 10. Directors and Executive Officers of the RegistrantItem 11. Executive CompensationItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersItem 13. Certain Relationships and Related TransactionsItem 14. Principal Accountant Fees and ServicesPART IVItem 15.Exhibits and Financial Statement SchedulesSIGNATURESEX-3.IIEX-23.IEX-23.IIEX-31.IEX-31.IIEX-32.IEX-32.II 
 PART I
 
 Item 1. Business.
 General
       http://www.advantagebank.com
 Lending Activities
 General
 2




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##### 



Loan Portfolio Composition
 At December 31,2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002Percent
    
    
    
    
    
    
    Percent
    
    
    
    
    
    
    Percent
    
    
    
    
    
    
    Percent
    
    
    
    
    
    
    Percentof total
    
    
    
    
    
    
    of total
    
    
    
    
    
    
    of total
    
    
    
    
    
    
    of total
    
    
    
    
    
    
    of totalAmount
    
    
    loans
    
    
    Amount
    
    
    loans
    
    
    Amount
    
    
    loans
    
    
    Amount
    
    
    loans
    
    
    Amount
    
    
    loans(Dollars in thousands)Type of loan:Existing residential properties(1)
    
    
    600,634
    
    
    
    72.6
    %
    
    $
    591,407
    
    
    
    69.7
    %
    
    $
    603,722
    
    
    
    72.2
    %
    
    $
    652,953
    
    
    
    81.1
    %
    
    $
    641,464
    
    
    
    80.5
    %Construction and development
    
    
    42,654
    
    
    
    5.1
    
    
    
    74,601
    
    
    
    8.8
    
    
    
    50,560
    
    
    
    6.0
    
    
    
    28,892
    
    
    
    3.6
    
    
    
    20,568
    
    
    
    2.6Nonresidential real estate
    
    
    100,189
    
    
    
    12.1
    
    
    
    95,380
    
    
    
    11.2
    
    
    
    105,247
    
    
    
    12.6
    
    
    
    51,533
    
    
    
    6.4
    
    
    
    74,094
    
    
    
    9.3Consumer and other loans(2)
    
    
    91,917
    
    
    
    11.1
    
    
    
    94,547
    
    
    
    11.1
    
    
    
    84,550
    
    
    
    10.1
    
    
    
    78,155
    
    
    
    9.7
    
    
    
    67,712
    
    
    
    8.5Total
    
    
    835,394
    
    
    
    100.9
    
    
    
    855,935
    
    
    
    100.8
    
    
    
    844,079
    
    
    
    100.9
    
    
    
    811,533
    
    
    
    100.8
    
    
    
    803,838
    
    
    
    100.9Less:Unamortized yield adjustments
    
    
    (8
    )
    
    
    (0.0
    )
    
    
    (266
    )
    
    
    (0.0
    )
    
    
    (937
    )
    
    
    (0.1
    )
    
    
    (810
    )
    
    
    (0.1
    )
    
    
    (1,390
    )
    
    
    (0.2
    )Allowance for loan losses
    
    
    (7,144
    )
    
    
    (0.9
    )
    
    
    (6,959
    )
    
    
    (0.8
    )
    
    
    (6,476
    )
    
    
    (0.8
    )
    
    
    (5,641
    )
    
    
    (0.7
    )
    
    
    (5,490
    )
    
    
    (0.7
    )Total loans, net
    
    $
    828,242
    
    
    
    100.0
    %
    
    $
    848,710
    
    
    
    100.0
    %
    
    $
    836,666
    
    
    
    100.0
    %
    
    $
    805,082
    
    
    
    100.0
    %
    
    $
    796,958
    
    
    
    100.0
    %
 
 (1)
    
    Includes loans held for sale, home equity lines of credit and mortgage servicing rights.(2)
    
    Includes second mortgage, multifamily and commercial loans. 3




---



##### 



Loan Maturity Schedule.
 Due during theyear ending
    
    
    
    
    
    
    Due inDecember 31,
    
    
    Due in years
    
    
    years after2007
    
    
    2008-2012
    
    
    2012
    
    
    Total(In thousands)Real estate loans (1):One- to four-family
    
    $
    10,540
    
    
    $
    112,436
    
    
    $
    467,569
    
    
    $
    590,545Multifamily
    
    
    201
    
    
    
    7,846
    
    
    
    35,345
    
    
    
    43,392Nonresidential
    
    
    7,774
    
    
    
    14,366
    
    
    
    78,049
    
    
    
    100,189Commercial
    
    
    4,248
    
    
    
    7,754
    
    
    
    10,770
    
    
    
    22,772Consumer and other loans (2)
    
    
    21,808
    
    
    
    15,509
    
    
    
    31,091
    
    
    
    68,408Total
    
    $
    44,571
    
    
    $
    157,911
    
    
    $
    622,824
    
    
    $
    825,306
 
 (1)
    
    Excludes loans held for sale of $3.7 million and does not consider the effects of
unamortized yield adjustments of $8,000 the allowance for loan losses of <$7.1>
million and mortgage-servicing rights totaling $6.4 million.(2)
    
    Includes loans secured by developed building lots.  Due afterDecember 31, 2007(In thousands)Fixed rate of interest
    
    $
    238,243Adjustable rate of interest
    
    
    542,492Total
    
    $
    780,735
  Residential Loans.
  4




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##### 



Construction Loans.
   Nonresidential Real Estate Loans
 5




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##### 



Consumer and Other Loans
 Developed Building Lots
 Loan Solicitation and Processing
    Loan Originations, Purchases and Sales
 6




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##### 



Year ended December 31,2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002(In thousands)Loans originated:Construction (purchased and originated)
    
    $
    23,752
    
    
    $
    45,066
    
    
    $
    45,826
    
    
    $
    37,791
    
    
    $
    54,114Permanent
    
    
    86,613
    
    
    
    121,033
    
    
    
    164,540
    
    
    
    422,021
    
    
    
    447,379Consumer and other
    
    
    172,403
    
    
    
    234,214
    
    
    
    126,168
    
    
    
    147,668
    
    
    
    70,772Total loans originated
    
    
    282,768
    
    
    
    400,313
    
    
    
    336,534
    
    
    
    607,480
    
    
    
    572,265Loans purchased (1)
    
    
    5,665
    
    
    
    14,490
    
    
    
    70,602
    
    
    
    126,006
    
    
    
    116,306Reductions:Principal repayments (1)
    
    
    263,241
    
    
    
    344,344
    
    
    
    243,074
    
    
    
    407,521
    
    
    
    441,419Loans sold (1)
    
    
    50,924
    
    
    
    69,734
    
    
    
    130,801
    
    
    
    337,376
    
    
    
    239,636Transfers from loans to real estate owned
    
    
    4,092
    
    
    
    3,725
    
    
    
    6,591
    
    
    
    4,010
    
    
    
    1,270Total reductions
    
    
    (318,257
    )
    
    
    (417,803
    )
    
    
    (380,466
    )
    
    
    (748,907
    )
    
    
    (682,325
    )Increase (decrease) in other items, net (2)
    
    
    (1,316
    )
    
    
    (1,559
    )
    
    
    (2,655
    )
    
    
    (8,167
    )
    
    
    (1,142
    )Decrease due to branch sales (3)
    
    
    
    
    
    
    
    
    
    
    (42,634
    )
    
    
    
    
    
    
    Increase due to mergers (4)
    
    
    
    
    
    
    
    
    
    
    49,050
    
    
    
    
    
    
    
    Net increase (decrease)
    
    $
    (31,140
    )
    
    $
    (4,559
    )
    
    $
    30,431
    
    
    $
    (23,588
    )
    
    $
    5,104
 
 (1)
    
    Includes mortgage-backed securities and SBA guaranteed loans.(2)
    
    Other items primarily consist of amortization of deferred loan origination fees, the
provision for losses on loans and unrealized gains on mortgage-backed securities designated as
available for sale.(3)
    
    The 2004 decrease resulted from the sale of the Ashland division.(4)
    
    The 2004 increase resulted from the acquisition of London. Lending Limit
 7




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##### 



Loan Origination and Other Fees.
 Delinquent Loans, Nonperforming Assets and Classified Assets
   At December 31,2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002(Dollars in thousands)Loans delinquent for:30 to 89 days
    
    $
    13,833
    
    
    $
    9,490
    
    
    $
    12,302
    
    
    $
    8,682
    
    
    $
    10,52490 or more days
    
    
    18,536
    
    
    
    13,922
    
    
    
    9,794
    
    
    
    13,608
    
    
    
    13,625Total delinquent loans
    
    $
    32,369
    
    
    $
    23,412
    
    
    $
    22,096
    
    
    $
    22,290
    
    
    $
    24,149Ratio of total delinquent loans to
total net loans (1)
    
    
    3.91
    %
    
    
    2.76
    %
    
    
    2.64
    %
    
    
    2.77
    %
    
    
    3.03
    %
 
 (1)
    
    Total net loans includes loans held for sale. 8




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##### 



At December 31,2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002(Dollars in thousands)Loans accounted for on nonaccrual basis:Real estate:Residential
    
    $
    15,142
    
    
    $
    10,267
    
    
    $
    7,922
    
    
    $
    12,135
    
    
    $
    11,021Nonresidential
    
    
    1,989
    
    
    
    3,109
    
    
    
    463
    
    
    
    357
    
    
    
    1,726Commercial
    
    
    398
    
    
    
    387
    
    
    
    
    
    
    
    
    
    
    
    Consumer and other
    
    
    136
    
    
    
    159
    
    
    
    1,409
    
    
    
    1,116
    
    
    
    878Total nonaccrual loans
    
    
    17,665
    
    
    
    13,922
    
    
    
    9,794
    
    
    
    13,608
    
    
    
    13,625Accruing loans delinquent three months or more:Real estate:Residential
    
    
    871
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Nonresidential
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Consumer and other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total loans 90 days past due
    
    
    871
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total nonperforming loans
    
    $
    18,536
    
    
    $
    13,922
    
    
    $
    9,794
    
    
    $
    13,608
    
    
    $
    13,625Allowance for loan losses
    
    $
    7,144
    
    
    $
    6,959
    
    
    $
    6,476
    
    
    $
    5,641
    
    
    $
    5,490Nonperforming loans as a percent of
total net loans (1)
    
    
    2.23
    %
    
    
    1.64
    %
    
    
    1.17
    %
    
    
    1.69
    %
    
    
    1,71
    %Allowance for loan losses as a percent of
nonperforming loans
    
    
    38.5
    %
    
    
    50.0
    %
    
    
    66.1
    %
    
    
    41.5
    %
    
    
    40.3
    %
 
 (1)
    
    Includes loans held for sale.    9




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##### 



At December 31, 2006(In thousands)Classified assets:Substandard
    
    $
    14,790Doubtful
    
    
    Loss
    
    
    35Total classified assets
    
    $
    14,825
  Allowance for Loan Losses.
 Year ended December 31,2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002(Dollars in thousands)Balance at beginning of year
    
    $
    6,959
    
    
    $
    6,476
    
    
    $
    5,641
    
    
    $
    5,490
    
    
    $
    4,256Charge-offs:1-4 family residential real estate
    
    
    646
    
    
    
    877
    
    
    
    1,142
    
    
    
    509
    
    
    
    134Multifamily and nonresidential real estate
    
    
    562
    
    
    
    146
    
    
    
    25
    
    
    
    418
    
    
    
    Consumer and other
    
    
    231
    
    
    
    257
    
    
    
    430
    
    
    
    392
    
    
    
    73Total charge-offs
    
    
    1,439
    
    
    
    1,280
    
    
    
    1,597
    
    
    
    1,319
    
    
    
    207Recoveries:1-4 family residential real estate
    
    
    25
    
    
    
    265
    
    
    
    180
    
    
    
    17
    
    
    
    23Consumer and other
    
    
    158
    
    
    
    18
    
    
    
    9
    
    
    
    7
    
    
    
    249Total recoveries
    
    
    184
    
    
    
    283
    
    
    
    189
    
    
    
    24
    
    
    
    272Net (charge-offs) recoveries
    
    
    (1,255
    )
    
    
    (997
    )
    
    
    (1,408
    )
    
    
    (1,295
    )
    
    
    65Provision for losses on loans
    
    
    1,440
    
    
    
    1,480
    
    
    
    1,620
    
    
    
    1,446
    
    
    
    1,169Increase attributable to mergers (1)
    
    
    
    
    
    
    
    
    
    
    623
    
    
    
    
    
    
    
    Balance at end of year
    
    $
    7,144
    
    
    $
    6,959
    
    
    $
    6,476
    
    
    $
    5,641
    
    
    $
    5,490Net (charge-offs) recoveries to average loans
    
    
    (.15
    )%
    
    
    (.12
    )%
    
    
    (.17
    )%
    
    
    (.17
    )%
    
    
    .01
    %
 
 (1)
    
    The 2004 increase resulted from the acquisition of London. 10




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##### 



At December 31,2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002Percent
    
    
    
    
    
    
    Percent
    
    
    
    
    
    
    Percent
    
    
    
    
    
    
    Percent
    
    
    
    
    
    
    Percentof loans
    
    
    
    
    
    
    of loans
    
    
    
    
    
    
    of loans
    
    
    
    
    
    
    of loans
    
    
    
    
    
    
    of loansin each
    
    
    
    
    
    
    in each
    
    
    
    
    
    
    in each
    
    
    
    
    
    
    in each
    
    
    
    
    
    
    in eachcategory
    
    
    
    
    
    
    category
    
    
    
    
    
    
    category
    
    
    
    
    
    
    category
    
    
    
    
    
    
    categoryto total
    
    
    
    
    
    
    to total
    
    
    
    
    
    
    to total
    
    
    
    
    
    
    to total
    
    
    
    
    
    
    to totalAmount
    
    
    loans
    
    
    Amount
    
    
    loans
    
    
    Amount
    
    
    loans
    
    
    Amount
    
    
    loans
    
    
    Amount
    
    
    loans(Dollars in thousands)Balance at year end
applicable to:Secured loans
    
    $
    6,096
    
    
    
    95.5
    %
    
    $
    5,262
    
    
    
    95.8
    %
    
    $
    4,915
    
    
    
    94.9
    %
    
    $
    4,452
    
    
    
    90.3
    %
    
    $
    4,910
    
    
    
    91.5
    %Unsecured
loans
    
    
    1,048
    
    
    
    4.5
    
    
    
    1,697
    
    
    
    4.2
    
    
    
    1,561
    
    
    
    5.1
    
    
    
    1,189
    
    
    
    9.7
    
    
    
    580
    
    
    
    8.5Total
    
    $
    7,144
    
    
    
    100.0
    %
    
    $
    6,959
    
    
    
    100.0
    %
    
    $
    6,476
    
    
    
    100.0
    %
    
    $
    5,641
    
    
    
    100.0
    %
    
    $
    5,490
    
    
    
    100.0
    %
 Investment and Mortgage-Backed Securities Activities
   At December 31,2006
    
    
    2005
    
    
    2004Amortized
    
    
    % of
    
    
    Fair
    
    
    % of
    
    
    Amortized
    
    
    % of
    
    
    Fair
    
    
    % of
    
    
    Amortized
    
    
    % of
    
    
    Fair
    
    
    % ofcost
    
    
    total
    
    
    value
    
    
    total
    
    
    cost
    
    
    total
    
    
    value
    
    
    total
    
    
    cost
    
    
    total
    
    
    value
    
    
    total(Dollars in thousands)Held to maturity:U.S. Government
agency obligations
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %
    
    $
    2,999
    
    
    
    2.8
    %
    
    $
    2,997
    
    
    
    2.7
    %Municipal bonds
    
    
    710
    
    
    
    0.7
    
    
    
    736
    
    
    
    0.7
    
    
    
    919
    
    
    
    0.8
    
    
    
    947
    
    
    
    0.8
    
    
    
    1,124
    
    
    
    1.0
    
    
    
    1,177
    
    
    
    1.1Mortgage-backed
securities
    
    
    2,739
    
    
    
    2.4
    
    
    
    2,734
    
    
    
    2.4
    
    
    
    3,257
    
    
    
    2.8
    
    
    
    3,251
    
    
    
    2.9
    
    
    
    4,146
    
    
    
    3.8
    
    
    
    4,188
    
    
    
    3.9Total
    
    
    3,449
    
    
    
    3.1
    
    
    
    3,470
    
    
    
    3.1
    
    
    
    4,176
    
    
    
    3.6
    
    
    
    4,198
    
    
    
    3.7
    
    
    
    8,269
    
    
    
    7.6
    
    
    
    8,362
    
    
    
    7.7Available for sale:U.S. Government
agency obligations
    
    
    55,962
    
    
    
    49.6
    
    
    
    55,578
    
    
    
    50.1
    
    
    
    47,993
    
    
    
    41.3
    
    
    
    47,374
    
    
    
    41.7
    
    
    
    18,007
    
    
    
    16.6
    
    
    
    17,921
    
    
    
    16.5Municipal bonds
    
    
    291
    
    
    
    0.3
    
    
    
    291
    
    
    
    0.2
    
    
    
    346
    
    
    
    0.3
    
    
    
    348
    
    
    
    0.3
    
    
    
    523
    
    
    
    0.5
    
    
    
    536
    
    
    
    0.5Corporate equity
securities
    
    
    159
    
    
    
    0.1
    
    
    
    184
    
    
    
    0.2
    
    
    
    159
    
    
    
    0.1
    
    
    
    185
    
    
    
    0.1
    
    
    
    247
    
    
    
    0.2
    
    
    
    387
    
    
    
    0.4Treasury
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    999
    
    
    
    0.9
    
    
    
    995
    
    
    
    0.9Mortgage-backed
securities
    
    
    52,950
    
    
    
    46.9
    
    
    
    51,453
    
    
    
    46.4
    
    
    
    63,536
    
    
    
    54.7
    
    
    
    61,607
    
    
    
    54.2
    
    
    
    80,782
    
    
    
    74.2
    
    
    
    80,321
    
    
    
    74.0Total
    
    
    109,362
    
    
    
    96.9
    
    
    
    107,506
    
    
    
    96.9
    
    
    
    112,034
    
    
    
    96.4
    
    
    
    109,514
    
    
    
    96.3
    
    
    
    100,558
    
    
    
    92.4
    
    
    
    100,160
    
    
    
    92.3Total investments and
mortgage-backed
securities
    
    $
    112,811
    
    
    
    100.0
    %
    
    $
    110,976
    
    
    
    100.0
    %
    
    $
    116,210
    
    
    
    100.0
    %
    
    $
    113,712
    
    
    
    100.0
    %
    
    $
    108,827
    
    
    
    100.0
    %
    
    $
    108,522
    
    
    
    100.0
    %
 11




---



##### 



At December 31, 2006After one
    
    
    After fiveOne year or less
    
    
    through five years
    
    
    through ten years
    
    
    After ten years
    
    
    TotalWeighted-Amortized
    
    
    Average
    
    
    Amortized
    
    
    Average
    
    
    Amortized
    
    
    Average
    
    
    Amortized
    
    
    Average
    
    
    Amortized
    
    
    Fair
    
    
    averagecost
    
    
    yield
    
    
    cost
    
    
    yield
    
    
    cost
    
    
    yield
    
    
    cost
    
    
    yield
    
    
    cost
    
    
    value
    
    
    yield(Dollars in thousands)U.S. Government
Agency obligations
    
    $
    41,968
    
    
    
    4.08
    %
    
    $
    13,994
    
    
    
    4.88
    %
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %
    
    $
    55,962
    
    
    $
    55,578
    
    
    
    3.90
    %Municipal bonds
    
    
    221
    
    
    
    5.10
    
    
    
    690
    
    
    
    5.72
    
    
    
    
    
    
    
    
    
    
    
    90
    
    
    
    9.86
    
    
    
    1,001
    
    
    
    1,027
    
    
    
    5.73Mortgage-backed
Securities
    
    
    386
    
    
    
    4.20
    
    
    
    18,085
    
    
    
    4.17
    
    
    
    20,629
    
    
    
    3.93
    
    
    
    16,589
    
    
    
    4.82
    
    
    
    55,689
    
    
    
    54,187
    
    
    
    4.08Total
    
    $
    42,575
    
    
    
    4.09
    %
    
    $
    32,769
    
    
    
    4.51
    %
    
    $
    20,629
    
    
    
    3.93
    %
    
    $
    16,679
    
    
    
    4.85
    %
    
    $
    112,652
    
    
    $
    110,792
    
    
    
    4.01
    %
 Deposits and Borrowings
 General.
 Deposits
  At December 31,Weighted-
    
    
    2006
    
    
    2005
    
    
    2004average rate
    
    
    
    
    
    
    Percent
    
    
    
    
    
    
    Percent
    
    
    
    
    
    
    Percentat
    
    
    
    
    
    
    of total
    
    
    
    
    
    
    of total
    
    
    
    
    
    
    of total12/31/06
    
    
    Amount
    
    
    deposits
    
    
    Amount
    
    
    deposits
    
    
    Amount
    
    
    deposits(Dollars in thousands)Withdrawable accounts:Interest-bearing and non-interest
bearing checking accounts
    
    
    1.36
    %
    
    $
    126,428
    
    
    
    18.5
    %
    
    $
    149,557
    
    
    
    22.7
    %
    
    $
    151,847
    
    
    
    22.8
    %Money market demand accounts
    
    
    3.59
    
    
    
    89,383
    
    
    
    13.0
    
    
    
    58,995
    
    
    
    8.9
    
    
    
    83,063
    
    
    
    12.4Passbook and statement savings accounts
    
    
    0.26
    
    
    
    47,997
    
    
    
    7.0
    
    
    
    61,356
    
    
    
    9.3
    
    
    
    70,959
    
    
    
    10.6Total certificate accounts
    
    
    4.62
    
    
    
    420,974
    
    
    
    61.5
    
    
    
    390,334
    
    
    
    59.1
    
    
    
    361,909
    
    
    
    54.2Total deposits
    
    
    3.52
    %
    
    $
    684,782
    
    
    
    100.0
    %
    
    $
    660,242
    
    
    
    100.0
    %
    
    $
    667,778
    
    
    
    100.0
    %
 12




---



##### 



Amount DueUp to
    
    
    
    
    
    
    
    
    
    
    Overone year
    
    
    1-3 years
    
    
    3-5 years
    
    
    5 years
    
    
    Total(Dollars in thousands)Amount maturing
    
    $
    289,030
    
    
    $
    123,126
    
    
    $
    7,956
    
    
    $
    862
    
    
    $
    420,974Average rate
    
    
    4.65
    %
    
    
    4.55
    %
    
    
    4.65
    %
    
    
    4.71
    %
    
    
    4.62
    %
  Maturity
    
    At December 31, 2006(In thousands)Three months or less
    
    $
    25,529Over three to six months
    
    
    23,053Over six to twelve months
    
    
    29,321Over twelve months
    
    
    23,183Total
    
    $
    101,086
 Borrowings.
  Year ended December 31,2006
    
    
    2005
    
    
    2004(Dollars in thousands)Maximum amount outstanding
    
    $
    300,533
    
    
    $
    306,887
    
    
    $
    295,310Average amount outstanding
    
    $
    269,255
    
    
    $
    294,397
    
    
    $
    277,576Weighted-average interest cost of FHLB
advances based on month end balances
    
    
    4.09
    %
    
    
    3.74
    %
    
    
    4.89
    %
  At December 31,2006
    
    
    2005
    
    
    2004(Dollars in thousands)Amount outstanding
    
    $
    245,288
    
    
    $
    294,357
    
    
    $
    295,310Weighted-average interest rate
    
    
    4.28
    %
    
    
    3.94
    %
    
    
    3.63
    %
 13




---



##### 



Competition
  Service Corporation Activities
  Employees
  REGULATION
 General
  Ohio Regulation
    14




---



##### 



Federal Deposit Insurance Corporation
 Supervision and Examination.
  State Chartered Bank Activities.
 Liquidity.
 Regulatory Capital Requirements.
    Camco:
    
    At December 31, 2006To 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)
    
    $
    92,135
    
    
    
    12.46
    %
    
    
    3$59,135
    
    
    
    38.0
    %
    
    
    N/A
    
    
    
    N/ATier I capital
(to risk-weighted assets)
    
    $
    84,991
    
    
    
    11.50
    %
    
    
    3$29,568
    
    
    
    34.0
    %
    
    
    N/A
    
    
    
    N/ATier I leverage
    
    $
    84,991
    
    
    
    8.22
    %
    
    
    3$41,351
    
    
    
    34.0
    %
    
    
    N/A
    
    
    
    N/A
 15




---



##### 



Advantage:
    
    At December 31, 2006To 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)
    
    $
    84,859
    
    
    
    11.48
    %
    
    
    3$59,130
    
    
    
    3  8.0
    %
    
    
    3$73,913
    
    
    
    3   10.0
    %Tier I capital
(to risk-weighted assets)
    
    $
    77,715
    
    
    
    10.51
    %
    
    
    3$29,577
    
    
    
    3  4.0
    %
    
    
    3$44,347
    
    
    
    3    6.0
    %Tier I leverage
    
    $
    77,715
    
    
    
    7.52
    %
    
    
    3$41,351
    
    
    
    3  4.0
    %
    
    
    3$51,689
    
    
    
    3    5.0
    %
  Transactions with Affiliates and Insiders
  Change in Control
 Federal Law
 Ohio Law
 16




---



##### 



Holding Company Regulation
  Federal Reserve Requirements
  Item 1A. Risk Factors.
  Changes in interest rates could adversely affect our financial condition and results of operations .
    17




---



##### 



Credit risks could adversely affect our results of operations.
  We operate in an extremely competitive market, and our business will suffer if we are unable to
compete effectively.
  Legislative or regulatory changes or actions could adversely impact the financial services
industry .
  Our ability to pay cash dividends is limited.
  The preparation of financial statements requires management to make estimates about matters that
are inherently uncertain.
  18




---



##### 



Our organizational documents may have the effect of discouraging a third party from acquiring us.
  We face risks with respect to future expansion.
  Item 1B.
Unresolved Staff Comments.
  Item 2. Properties.
  Year facility
    
    
    Leased
    
    
    Net Book(000s)
    
    commenced
    
    
    or
    
    
    valueOffice Location
    
    operations
    
    
    owned
    
    
    (1)134 E. Court
Street 
Washington Court House, Ohio
    
    
    1963
    
    
    Owned (2)
    
    $
    658.71050
Washington Ave. 
Washington Court House, Ohio
    
    
    1996
    
    
    Owned
    
    
    500.71 N. Plum
Street 
Germantown, Ohio
    
    
    1998
    
    
    Owned
    
    
    492.7687 West
Main Street 
New Lebanon, Ohio
    
    
    1998
    
    
    Owned
    
    
    65.72 East High
Street 
London, Ohio
    
    
    2004
    
    
    Owned
    
    
    592.83002
Harrison Avenue 
Cincinnati, Ohio
    
    
    2000
    
    
    Owned
    
    
    1318.11111 St. Gregory Street 
Cincinnati, Ohio
    
    
    2000
    
    
    Leased (3)
    
    
    34.05071 Glencrossing Way 
Cincinnati, Ohio
    
    
    2000
    
    
    Leased (4)
    
    
    58.6126 S. 9th Street 
Cambridge, Ohio
    
    
    1998
    
    
    Owned
    
    
    83.5
 19




---



##### 



Year facility
    
    
    Leased
    
    
    Net Book(000s)
    
    commenced
    
    
    or
    
    
    valueOffice Location
    
    operations
    
    
    owned
    
    
    (1)226 Third
Street 
Marietta, Ohio
    
    
    1976
    
    
    Owned (5)
    
    
    594.21925 Washington Boulevard 
Belpre, Ohio
    
    
    1979
    
    
    Owned
    
    
    70.2478 Pike Street 
Marietta, Ohio
    
    
    1998
    
    
    Leased (6)
    
    
    549.7814 Wheeling Avenue 
Cambridge, Ohio
    
    
    1963
    
    
    Owned
    
    
    1047.2327 E. 3rd Street 
Uhrichsville, Ohio
    
    
    1975
    
    
    Owned
    
    
    69.6175 N. 11th Street 
Cambridge, Ohio
    
    
    1981
    
    
    Owned
    
    
    354.9209 Seneca Avenue 
Byesville, Ohio
    
    
    1978
    
    
    Leased (7)
    
    
    0.0547 S. James Street 
Dover, Ohio
    
    
    2002
    
    
    Owned
    
    
    364.62497 Dixie Highway 
Ft. Mitchell, Kentucky
    
    
    2001
    
    
    Owned
    
    
    591.1401-7 Pike Street 
Covington, Kentucky
    
    
    2001
    
    
    Owned
    
    
    97.83522 Dixie Highway 
Erlanger, Kentucky
    
    
    2001
    
    
    Owned
    
    
    32.57550 Dixie Highway 
Florence, Kentucky
    
    
    2001
    
    
    Owned
    
    
    458.7191 Eastern Heights
Shopping Center 
Huntington, West Virginia
    
    
    1997
    
    
    Leased (8)
    
    
    0.06901 Glenn Highway 
Cambridge, Ohio
    
    
    1999
    
    
    Owned
    
    
    1212.5100 E. Wilson Bridge Road 
Suite #105 & 110
Worthington, Ohio
    
    
    2004
    
    
    Leased (9)
    
    
    40.26269 Frank Ave. 
N. Canton, Ohio
    
    
    1992
    
    
    Leased (10)
    
    
    0.01500 Grand Central Ave.-
Suite #102
Vienna, West Virginia
    
    
    2004
    
    
    Leased (11)
    
    
    228.0123 Southgate Parkway 
Cambridge, Ohio
    
    
    2005
    
    
    Leased (12)
    
    
    86.1Tylersville Road 
Mason, Ohio
    
    
    2006
    
    
    Leased (13)
    
    
    249.61104 Eagleton Blvd. 
London, Ohio
    
    
    2006
    
    
    Leased (14)
    
    
    41.8
 
 (1)
    
    Net book value amounts are for land, buildings, improvements and construction in progress.(2)
    
    The 134 E. Court Street facility also serves as the Camco Title  Washington Court House
office.(3)
    
    The lease expires in October 2010.(4)
    
    The lease expires in November 2010.(5)
    
    The 226 Third Street facility also serves as the Camco Title  Marietta office.(6)
    
    The lease expires in November 2017. Advantage has the option to renew for two five-year
terms. The lease is for land only.(7)
    
    The lease expires in September 2010. Advantage has the option to renew the lease for a
five-year term.(8)
    
    The lease expires July 31, 2009. Advantage has the option to rebew for a three year term.(9)
    
    The lease expires in September 2008. Advantage has the option to renew for two five-year
terms.(10)
    
    The lease expires in August 2007. Advantage has the option to renew for a one-year term.(11)
    
    The lease expires in October 2013. Advantage has the option to renew for three five-year
terms.(12)
    
    The lease expires in June 2012. Advantage has the option to purchase at a cost of $120,000.(13)
    
    The lease expires in December 2016. Advantage has the option to renew the lease for two
five-year terms.(14)
    
    The lease expires in May 2011. Advantage has the option to renew for three five-year terms.
This branch location is currently under construction. 20




---



##### 



Item 3. Legal Proceedings.
  Item 4. Submission of Matters to a Vote of Security Holders.
  21




---



##### 



PART II
 Item 5. Market for Registrants Common Stock, Related Stockholder Matters and Issuer Purchases of
Common Stock.
  CashdividendsHigh
    
    Low
    
    declaredYear ended December 31, 2006Quarter ending:December 31, 2006
    
    $
    14.29
    
    
    $
    12.64
    
    
    $
    0.150September 30, 2006
    
    
    13.97
    
    
    
    13.14
    
    
    
    0.150June 30, 2006
    
    
    14.17
    
    
    
    13.40
    
    
    
    0.150March 31, 2006
    
    
    14.58
    
    
    
    13.86
    
    
    
    0.150Year ended December 31, 2005Quarter ending:December 31, 2005
    
    $
    14.68
    
    
    $
    13.78
    
    
    $
    0.145September 30, 2005
    
    
    14.65
    
    
    
    13.90
    
    
    
    0.145June 30, 2005
    
    
    14.50
    
    
    
    13.14
    
    
    
    0.145March 31, 2005
    
    
    16.80
    
    
    
    13.97
    
    
    
    0.145Year ended December 31, 2004Quarter ending:December 31, 2004
    
    $
    15.79
    
    
    $
    14.94
    
    
    $
    0.145September 30, 2004
    
    
    15.67
    
    
    
    14.07
    
    
    
    0.145June 30, 2004
    
    
    16.93
    
    
    
    12.77
    
    
    
    0.145March 31, 2004
    
    
    17.62
    
    
    
    16.40
    
    
    
    0.145
 Equity Compensation Plan Information
  22




---



##### 



Performance Graph
  
 Period EndingIndex
    
    12/31/01
    
    
    12/31/02
    
    
    12/31/03
    
    
    12/31/04
    
    
    12/31/05
    
    
    12/31/06Camco Financial Corporation
    
    
    100.00
    
    
    
    116.21
    
    
    
    146.73
    
    
    
    136.54
    
    
    
    131.64
    
    
    
    121.70NASDAQ Composite
    
    
    100.00
    
    
    
    68.76
    
    
    
    103.67
    
    
    
    113.16
    
    
    
    115.57
    
    
    
    127.58SNL Bank and Thrift
    
    
    100.00
    
    
    
    93.96
    
    
    
    127.39
    
    
    
    142.66
    
    
    
    144.89
    
    
    
    169.30
 23




---



##### 



Item 6. Selected Consolidated Financial Data.
  SELECTED CONSOLIDATEDFINANCIAL DATA:(1)
    
    At December 31,2006
    
    2005
    
    2004
    
    2003
    
    2002(In thousands)Total amount of:Assets
    
    $
    1,048,216
    
    
    $
    1,071,248
    
    
    $
    1,065,823
    
    
    $
    1,039,151
    
    
    $
    1,083,240Interest-bearing deposits in other financial institutions
    
    
    12,673
    
    
    
    11,299
    
    
    
    17,045
    
    
    
    30,904
    
    
    
    36,807Investment securities available for sale  at market
    
    
    56,053
    
    
    
    47,907
    
    
    
    19,839
    
    
    
    27,008
    
    
    
    38,789Investment securities held to maturity
    
    
    710
    
    
    
    919
    
    
    
    4,123
    
    
    
    1,130
    
    
    
    5,368Mortgage-backed securities available for sale  at market
    
    
    51,453
    
    
    
    61,607
    
    
    
    80,321
    
    
    
    77,916
    
    
    
    97,332Mortgage-backed securities held to maturity
    
    
    2,739
    
    
    
    3,257
    
    
    
    4,146
    
    
    
    7,704
    
    
    
    20,000Loans receivable  net (2)
    
    
    828,242
    
    
    
    848,710
    
    
    
    836,666
    
    
    
    805,082
    
    
    
    796,958Deposits
    
    
    684,782
    
    
    
    660,242
    
    
    
    667,778
    
    
    
    671,274
    
    
    
    694,072FHLB advances and other borrowings
    
    
    257,139
    
    
    
    307,223
    
    
    
    295,310
    
    
    
    262,735
    
    
    
    276,276Stockholders equity  restricted
    
    
    91,092
    
    
    
    90,763
    
    
    
    89,321
    
    
    
    92,543
    
    
    
    98,601
 SELECTED CONSOLIDATEDOPERATING DATA:(1)
    
    Year ended December 31,2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002(In thousands, except per share data)Total interest income
    
    $
    62,689
    
    
    $
    57,078
    
    
    $
    52,948
    
    
    $
    54,875
    
    
    $
    66,002Total interest expense
    
    
    32,771
    
    
    
    26,529
    
    
    
    27,512
    
    
    
    31,237
    
    
    
    38,556Net interest income
    
    
    29,918
    
    
    
    30,549
    
    
    
    25,436
    
    
    
    23,638
    
    
    
    27,446Provision for losses on loans
    
    
    1,440
    
    
    
    1,480
    
    
    
    1,620
    
    
    
    1,446
    
    
    
    1,169Net interest income after provision for losses on loans
    
    
    28,478
    
    
    
    29,069
    
    
    
    23,816
    
    
    
    22,192
    
    
    
    26,277Other income
    
    
    5,033
    
    
    
    6,584
    
    
    
    7,082
    
    
    
    11,411
    
    
    
    10,100Sale of branch deposits and premises, net
    
    
    
    
    
    
    8
    
    
    
    6,626
    
    
    
    
    
    
    
    General, administrative and other expense
    
    
    24,910
    
    
    
    22,754
    
    
    
    22,841
    
    
    
    22,404
    
    
    
    21,682Restructuring credits related to charter consolidation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (112
    )FHLB advance prepayment fees
    
    
    
    
    
    
    
    
    
    
    18,879
    
    
    
    1,292
    
    
    
    Earnings (loss) before federal income taxes (credits)
    
    
    8,601
    
    
    
    12,907
    
    
    
    (4,196
    )
    
    
    9,907
    
    
    
    14,807Federal income taxes (credits)
    
    
    2,727
    
    
    
    4,141
    
    
    
    (1,660
    )
    
    
    3,051
    
    
    
    4,802Net earnings (loss)
    
    
    5,874
    
    
    
    8,766
    
    
    
    (2,536
    )
    
    
    6,856
    
    
    
    10,005Prepayment fees, restructuring charges (credits) and gain on sale of
Ashland branches (net of related tax effects)
    
    
    
    
    
    
    
    
    
    
    8,440
    
    
    
    853
    
    
    
    (74
    )Net earnings from operations
    
    $
    5,874
    
    
    $
    8,766
    
    
    $
    5,904
    
    
    $
    7,709
    
    
    $
    9,931Earnings (loss) per share:Basic
    
    $
    .78
    
    
    $
    1.15
    
    
    $
    (.34
    )
    
    $
    .92
    
    
    $
    1.27Basic from operations(3)
    
    $
    .78
    
    
    $
    1.15
    
    
    $
    .79
    
    
    $
    1.03
    
    
    $
    1.26Diluted
    
    $
    .78
    
    
    $
    1.15
    
    
    
    N/A
    
    
    $
    .91
    
    
    $
    1.25Diluted from operations(3)
    
    $
    .78
    
    
    $
    1.15
    
    
    $
    .79
    
    
    $
    1.02
    
    
    $
    1.24
 Year ended December 31,2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002Return on average assets(4)
    
    
    0.55
    %
    
    
    0.82
    %
    
    
    (0.24
    )%
    
    
    0.65
    %
    
    
    0.92
    %Return on average assets from operations(4)
    
    
    0.55
    
    
    
    0.82
    
    
    
    0.56
    
    
    
    0.73
    
    
    
    0.91Return on average equity(4)
    
    
    6.46
    
    
    
    9.73
    
    
    
    (2.79
    )
    
    
    7.17
    
    
    
    10.33Return on average equity from operations(4)
    
    
    6.46
    
    
    
    9.73
    
    
    
    6.49
    
    
    
    8.07
    
    
    
    10.25Average equity to average assets(4)
    
    
    8.58
    
    
    
    8.43
    
    
    
    8.64
    
    
    
    9.01
    
    
    
    8.86Dividend payout ratio(5)
    
    
    76.92
    
    
    
    50.43
    
    
    
    N/A
    (6)
    
    
    61.96
    
    
    
    41.34
 
 (1)
    
    The information as of December 31, 2004 reflects the acquisition of London Financial Corporation.
This combination was accounted for using the purchase method of accounting.(2)
    
    Includes loans held for sale.(3)
    
    Represents a pro-forma presentation based upon net earnings from operations divided by
weighted-average basic and diluted shares outstanding. For 2006, diluted earnings per share from
operations is based on 7,508,006 diluted shares assumed to be outstanding.(4)
    
    Ratios are based upon the mathematical average of the balances at the beginning and the end of the
year.(5)
    
    Represents dividends per share divided by basic earnings per share.(6)
    
    Not meaningful. 
 24




---



##### 



Item 7. Managements Discussion and Analysis of Financial Condition and Results of
Operations.
 General
    Forward-Looking Statements
  Non-GAAP Financial Measures
   Critical Accounting Policies
  25




---



##### 



Allowance for Loan Losses
    Mortgage Servicing Rights
   26




---



##### 



Goodwill
     Summary
  Discussion of Financial Condition Changes from December 31, 2005 to December 31, 2006
   27




---



##### 



28




---



##### 



Comparison of Results of Operations for the Years Ended December 31, 2006 and December 31, 2005
 General.
 Net Interest Income.
    Provision for Losses on Loans.
 29




---



##### 



Other Income.
 General, Administrative and Other Expense.
 Federal Income Taxes.
 Comparison of Results of Operations for the Years Ended December 31, 2005 and December 31, 2004
 General.
   30




---



##### 



Net Interest Income.
    Provision for Losses on Loans.
 Other Income.
  General, Administrative and Other Expense.
 31




---



##### 



Federal Income Taxes.
 32




---



##### 



AVERAGE BALANCE, YIELD, RATE AND VOLUME DATA
  Year ended December 31,2006
    
    
    
    
    
    
    
    
    
    
    2005
    
    
    
    
    
    
    
    
    
    
    2004Average
    
    
    Interest
    
    
    Average
    
    
    Average
    
    
    Interest
    
    
    Average
    
    
    Average
    
    
    Interest
    
    
    Averageoutstanding
    
    
    earned/
    
    
    yield/
    
    
    outstanding
    
    
    earned/
    
    
    yield/
    
    
    outstanding
    
    
    earned/
    
    
    yield/balance
    
    
    paid
    
    
    rate
    
    
    balance
    
    
    paid
    
    
    rate
    
    
    balance
    
    
    paid
    
    
    rate(Dollars in thousands)Interest-earning assets:Loans receivable (1)
    
    $
    841,398
    
    
    $
    54,764
    
    
    
    6.51
    %
    
    $
    846,729
    
    
    $
    50,165
    
    
    
    5.92
    %
    
    $
    844,660
    
    
    $
    46,932
    
    
    
    5.56
    %Mortgage-backed securities (2)
    
    
    58,766
    
    
    
    2,428
    
    
    
    4.13
    
    
    
    75,336
    
    
    
    2,827
    
    
    
    3.75
    
    
    
    89,863
    
    
    
    3,016
    
    
    
    3.36Investment securities (2)
    
    
    53,818
    
    
    
    2,212
    
    
    
    4.11
    
    
    
    35,277
    
    
    
    1,266
    
    
    
    3.59
    
    
    
    26,987
    
    
    
    772
    
    
    
    2.86Interest-bearing deposits and other
interest-earning assets
    
    
    62,849
    
    
    
    3,285
    
    
    
    5.23
    
    
    
    59,542
    
    
    
    2,820
    
    
    
    4.74
    
    
    
    62,016
    
    
    
    2,228
    
    
    
    3.59Total interest-earning assets
    
    $
    1,016,831
    
    
    
    62,689
    
    
    
    6.17
    
    
    $
    1,016,884
    
    
    
    57,078
    
    
    
    5.61
    
    
    $
    1,023,526
    
    
    
    52,948
    
    
    
    5.17Interest-bearing liabilities:Deposits
    
    $
    646,269
    
    
    
    21,248
    
    
    
    3.29
    
    
    $
    640,469
    
    
    
    15,434
    
    
    
    2.41
    
    
    $
    666,540
    
    
    
    13,945
    
    
    
    2.09FHLB advances and other
    
    
    282,325
    
    
    
    11,523
    
    
    
    4.08
    
    
    
    297,304
    
    
    
    11,095
    
    
    
    3.73
    
    
    
    277,576
    
    
    
    13,567
    
    
    
    4.89Total interest-bearing liabilities
    
    $
    928,594
    
    
    
    32,771
    
    
    
    3.53
    
    
    $
    937,773
    
    
    
    26,529
    
    
    
    2.83
    
    
    $
    944,116
    
    
    
    27,512
    
    
    
    2.91Net interest income/Interest rate spread
    
    
    
    
    
    $
    29,918
    
    
    
    2.64
    %
    
    
    
    
    
    $
    30,549
    
    
    
    2.78
    %
    
    
    
    
    
    $
    25,436
    
    
    
    2.26
    %Net interest margin (3)
    
    
    
    
    
    
    
    
    
    
    2.94
    %
    
    
    
    
    
    
    
    
    
    
    3.00
    %
    
    
    
    
    
    
    
    
    
    
    2.49
    %Average interest-earning assets to average
interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    109.5
    %
    
    
    
    
    
    
    
    
    
    
    108.44
    %
    
    
    
    
    
    
    
    
    
    
    108.41
    %
 
 (1)
    
    Includes nonaccrual loans and loans held for sale.(2)
    
    Includes securities designated as available for sale.(3)
    
    Net interest income as a percent of average interest-earning assets. 33




---



##### 



Rate/Volume Table
  Year ended December 31,2006 vs. 2005
    
    
    
    
    
    
    
    
    
    
    2005 vs. 2004Increase
    
    
    
    
    
    
    
    
    
    
    Increase(decrease)
    
    
    
    
    
    
    
    
    
    
    (decrease)due to
    
    
    
    
    
    
    
    
    
    
    due toVolume
    
    
    Rate
    
    
    Total
    
    
    Volume
    
    
    Rate
    
    
    Total(In thousands)Interest income attributable to:Loans receivable (1)
    
    $
    (307
    )
    
    $
    4,906
    
    
    $
    4,599
    
    
    $
    115
    
    
    $
    3,118
    
    
    $
    3,233Mortgage-backed securities
    
    
    (738
    )
    
    
    339
    
    
    
    (399
    )
    
    
    (701
    )
    
    
    512
    
    
    
    (189
    )Investment securities
    
    
    741
    
    
    
    205
    
    
    
    946
    
    
    
    270
    
    
    
    224
    
    
    
    494Interest-bearing deposits and other (2)
    
    
    162
    
    
    
    303
    
    
    
    465
    
    
    
    (85
    )
    
    
    677
    
    
    
    592Total interest income
    
    
    (142
    )
    
    
    5,753
    
    
    
    5,611
    
    
    
    (401
    )
    
    
    4,531
    
    
    
    4,130Interest expense attributable to:Deposits
    
    
    141
    
    
    
    5,673
    
    
    
    5,814
    
    
    
    (517
    )
    
    
    2,006
    
    
    
    1,489Borrowings
    
    
    (498
    )
    
    
    926
    
    
    
    428
    
    
    
    1,062
    
    
    
    (3,534
    )
    
    
    (2,472
    )Total interest expense
    
    
    (357
    )
    
    
    6,599
    
    
    
    6,242
    
    
    
    545
    
    
    
    (1,528
    )
    
    
    (983
    )Increase (decrease) in net interest income
    
    $
    215
    
    
    $
    (846
    )
    
    $
    (631
    )
    
    $
    (946
    )
    
    $
    6,059
    
    
    $
    5,113
 
 (1)
    
    Includes loans held for sale.(2)
    
    Includes interest-bearing deposits. Yields Earned and Rates Paid
  At December 31,2006
    
    2005
    
    2004Weighted-average yield on:Loan portfolio (1)
    
    
    6.97
    %
    
    
    6.36
    %
    
    
    5.78
    %Investment portfolio (2)
    
    
    4.62
    
    
    
    4.53
    
    
    
    3.75Total interest-earning assets
    
    
    6.56
    
    
    
    6.02
    
    
    
    5.45Weighted-average rate paid on:Deposits
    
    
    3.52
    
    
    
    2.60
    
    
    
    2.10FHLB advances
    
    
    4.28
    
    
    
    3.94
    
    
    
    3.63Total interest-bearing liabilities
    
    
    3.73
    
    
    
    3.01
    
    
    
    2.57Interest rate spread
    
    
    2.83
    %
    
    
    3.01
    %
    
    
    2.88
    %
 
 (1)
    
    Includes loans held for sale and excludes the allowance for loan losses.(2)
    
    Includes earnings on FHLB stock and cash surrender value of life
insurance. 34




---



##### 



Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
       Change in
    
    Percentage Change inInterest Rates
    
    Net Interest Income(basis points)
    
    12 Months+200
    
    -14.22%+100
    
    -6.48%-100
    
    -1.08%-200
    
    -3.29%
   35




---



##### 



Change inInterest Rates
    
    
    
    Percentage(basis points)
    
    EVE Ratio
    
    change in EVE+ 200
    
    7.93%
    
    - 5.11%+ 100
    
    8.11%
    
    - 1.34%0
    
    8.10%
    
    0- 100
    
    8.40%
    
    + 5.13%- 200
    
    8.70%
    
    +10.28%
  Liquidity and Capital Resources
   Payments due by periodLess
    
    
    
    
    
    
    
    
    
    
    Morethan
    
    
    1-3
    
    
    3-5
    
    
    than1 year
    
    
    years
    
    
    years
    
    
    5 years
    
    
    Total(In thousands)Contractual obligations:Operating lease obligations
    
    $
    337
    
    
    $
    537
    
    
    $
    407
    
    
    $
    576
    
    
    $
    1,857Advances from the Federal Home Loan Bank
    
    
    91,935
    
    
    
    88,769
    
    
    
    13,000
    
    
    
    51,584
    
    
    
    245,288Repurchase Agreements
    
    
    1,779
    
    
    
    957
    
    
    
    320
    
    
    
    
    
    
    
    3,056Certificates of deposit
    
    
    289,030
    
    
    
    123,126
    
    
    
    7,956
    
    
    
    862
    
    
    
    420,974Ohio Equity Funds for Housing
    
    
    166
    
    
    
    2,220
    
    
    
    2,093
    
    
    
    521
    
    
    
    5,000Amount of commitments expiration per periodCommitments to originate loans:Overdraft lines of credit
    
    
    757
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    757Home equity
    
    
    77,366
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    77,366One- to four-family and multi-family loans includes LIP
    
    
    30,347
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,347Commercial includes LIP & LOC
    
    
    20,099
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,099Non-residential real estate and land loans
    
    
    567
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    567Total contractual obligations
    
    $
    512,383
    
    
    $
    215,609
    
    
    $
    23,776
    
    
    $
    53,543
    
    
    $
    805,311
  36




---



##### 



Item 8. Financial Statements and Supplementary Data.
 Managements Report On Internal Control Over Financial Reporting
     37




---



##### 



Report of Independent Registered Public Accounting Firm
 
        
 38




---



##### 



Report of Independent Registered Public Accounting Firm
 
      
 39




---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
     
 40




---



##### 



CAMCO FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 
 2006
    
    
    2005ASSETSCash and due from banks
    
    $
    13,869
    
    
    $
    21,786Interest-bearing deposits in other financial institutions
    
    
    12,673
    
    
    
    11,299Cash and cash equivalents
    
    
    26,542
    
    
    
    33,085Investment securities available for sale  at market
    
    
    56,053
    
    
    
    47,907Investment securities held to maturity  at cost, approximate market
value of $736 and $947 as of December 31, 2006 and 2005, respectively
    
    
    710
    
    
    
    919Mortgage-backed securities available for sale  at market
    
    
    51,453
    
    
    
    61,607Mortgage-backed securities held to maturity  at cost, approximate market value of $2,734 and $3,251 as of December 31, 2006 and 2005, respectively
    
    
    2,739
    
    
    
    3,257Loans held for sale  at lower of cost or market
    
    
    3,664
    
    
    
    1,947Loans receivable  net
    
    
    824,578
    
    
    
    846,763Office premises and equipment  net
    
    
    13,200
    
    
    
    11,569Real estate acquired through foreclosure
    
    
    3,956
    
    
    
    2,581Federal Home Loan Bank stock  at cost
    
    
    28,722
    
    
    
    27,112Accrued interest receivable
    
    
    6,502
    
    
    
    5,297Prepaid expenses and other assets
    
    
    1,537
    
    
    
    1,228Cash surrender value of life insurance
    
    
    20,921
    
    
    
    20,793Goodwill  net of accumulated amortization
    
    
    6,683
    
    
    
    6,683Prepaid and refundable federal income taxes
    
    
    956
    
    
    
    500Total assets
    
    $
    1,048,216
    
    
    $
    1,071,248LIABILITIES AND STOCKHOLDERS EQUITYDeposits
    
    $
    684,782
    
    
    $
    660,242Advances from the Federal Home Loan Bank and other borrowings
    
    
    257,139
    
    
    
    307,223Advances by borrowers for taxes and insurance
    
    
    3,484
    
    
    
    3,249Accounts payable and accrued liabilities
    
    
    6,350
    
    
    
    5,330Dividends payable
    
    
    1,120
    
    
    
    1,102Deferred federal income taxes
    
    
    4,249
    
    
    
    3,339Total liabilities
    
    
    957,124
    
    
    
    980,485Commitments
    
    
    
    
    
    
    Stockholders equityPreferred stock  $1 par value; authorized 100,000 shares; no shares outstanding
    
    
    
    
    
    
    Common stock  $1 par value; authorized 14,900,000 shares; 8,832,082 and
8,829,839 shares issued at December 31, 2006 and 2005, respectively
    
    
    8,832
    
    
    
    8,830Additional paid-in capital
    
    
    59,722
    
    
    
    59,567Retained earnings  restricted
    
    
    43,954
    
    
    
    42,569Accumulated other comprehensive income (loss)  unrealized gains (losses) on
securities designated as available for sale, net of related tax effects
    
    
    (1,225
    )
    
    
    (1,663
    )Less 1,369,025 and 1,251,125 shares of treasury stock at December 31, 2006
and 2005, respectively at cost
    
    
    (20,191
    )
    
    
    (18,540
    )Total stockholders equity
    
    
    91,092
    
    
    
    90,763Total liabilities and stockholders equity
    
    $
    1,048,216
    
    
    $
    1,071,248
  41




---



##### 



CAMCO FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF OPERATIONS
 
 2006
    
    
    2005
    
    
    2004Interest incomeLoans
    
    $
    54,764
    
    
    $
    50,165
    
    
    $
    46,932Mortgage-backed securities
    
    
    2,428
    
    
    
    2,827
    
    
    
    3,016Investment securities
    
    
    2,212
    
    
    
    1,266
    
    
    
    772Interest-bearing deposits and other
    
    
    3,285
    
    
    
    2,820
    
    
    
    2,228Total interest income
    
    
    62,689
    
    
    
    57,078
    
    
    
    52,948Interest expenseDeposits
    
    
    21,248
    
    
    
    15,434
    
    
    
    13,945Borrowings
    
    
    11,523
    
    
    
    11,095
    
    
    
    13,567Total interest expense
    
    
    32,771
    
    
    
    26,529
    
    
    
    27,512Net interest income
    
    
    29,918
    
    
    
    30,549
    
    
    
    25,436Provision for losses on loans
    
    
    1,440
    
    
    
    1,480
    
    
    
    1,620Net interest income after provision for losses on loans
    
    
    28,478
    
    
    
    29,069
    
    
    
    23,816Other incomeLate charges, rent and other
    
    
    1,773
    
    
    
    2,076
    
    
    
    1,672Title fees
    
    
    673
    
    
    
    752
    
    
    
    778Loan servicing fees
    
    
    1,412
    
    
    
    1,480
    
    
    
    1,519Gain on sale of loans
    
    
    295
    
    
    
    683
    
    
    
    819Mortgage servicing rights  net
    
    
    (549
    )
    
    
    20
    
    
    
    402Service charges and other fees on deposits
    
    
    1,479
    
    
    
    1,483
    
    
    
    1,410Gain on sale of investment and mortgage-backed securities
    
    
    0
    
    
    
    113
    
    
    
    135Gain (loss) on sale of real estate acquired through foreclosure
    
    
    (72
    )
    
    
    (23
    )
    
    
    347Gain on sale of branch deposits, premises and equipment, net
    
    
    22
    
    
    
    8
    
    
    
    6,626Total other income
    
    
    5,033
    
    
    
    6,592
    
    
    
    13,708General, administrative and other expenseEmployee compensation and benefits
    
    
    14,480
    
    
    
    13,881
    
    
    
    13,313Deferred loan origination costs  SFAS No. 91
    
    
    (1,913
    )
    
    
    (2,166
    )
    
    
    (2,227
    )Occupancy and equipment
    
    
    3,182
    
    
    
    3,051
    
    
    
    3,390Data processing
    
    
    1,344
    
    
    
    1,368
    
    
    
    1,318Advertising
    
    
    1,158
    
    
    
    1,218
    
    
    
    1,047Franchise taxes
    
    
    1,027
    
    
    
    267
    
    
    
    992Other operating
    
    
    5,632
    
    
    
    5,135
    
    
    
    5,008Federal Home Loan Bank advance prepayment fees
    
    
    
    
    
    
    
    
    
    
    18,879Total general, administrative and other expense
    
    
    24,910
    
    
    
    22,754
    
    
    
    41,720Earnings (loss) before federal income taxes (credits)
    
    
    8,601
    
    
    
    12,907
    
    
    
    (4,196
    )Federal Income TaxesCurrent
    
    
    2,043
    
    
    
    3,965
    
    
    
    (1,572
    )Deferred
    
    
    684
    
    
    
    176
    
    
    
    (88
    )Total federal income taxes (credits)
    
    
    2,727
    
    
    
    4,141
    
    
    
    (1,660
    )NET EARNINGS (LOSS)
    
    $
    5,874
    
    
    $
    8,766
    
    
    $
    (2,536
    )EARNINGS (LOSS) PER SHAREBasic
    
    $
    0.78
    
    
    $
    1.15
    
    
    $
    (.34
    )Diluted
    
    $
    0.78
    
    
    $
    1.15
    
    
    
    N/A
  42




---



##### 



CAMCO FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
 2006
    
    
    2005
    
    
    2004Net earnings (loss)
    
    $
    5,874
    
    
    $
    8,766
    
    
    $
    (2,536
    )Other comprehensive income (loss), net of tax effects:Unrealized holding gains (losses) on securities during the
period,
net of taxes (benefits) of $226, $(683) and $(195) in
2006, 2005
and 2004, respectively
    
    
    438
    
    
    
    (1,325
    )
    
    
    (379
    )Reclassification adjustment for realized gains included in
operations, net of taxes of $0, $38 and $45 for the years ended
December 31, 2006, 2005 and 2004, respectively
    
    
    
    
    
    
    (75
    )
    
    
    (90
    )Comprehensive income (loss)
    
    $
    6,312
    
    
    $
    7,366
    
    
    $
    (3,005
    )
  43




---



##### 



CAMCO FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
 
 Unrealizedgains (losses)on securitiesAdditional
    
    
    
    
    
    
    designated
    
    
    
    
    
    
    TotalCommon
    
    
    paid-in
    
    
    Retained
    
    
    as available
    
    
    Treasury
    
    
    stockholdersstock
    
    
    capital
    
    
    earnings
    
    
    for sale
    
    
    stock
    
    
    equityBalance at January 1, 2004
    
    $
    8,429
    
    
    $
    55,132
    
    
    $
    45,121
    
    
    $
    206
    
    
    $
    (16,345
    )
    
    $
    92,543Stock options exercised
    
    
    53
    
    
    
    499
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    552Cash dividends declared  $.58 per share
    
    
    
    
    
    
    
    
    
    
    (4,351
    )
    
    
    
    
    
    
    
    
    
    
    (4,351
    )Acquisition of London Financial
    
    
    278
    
    
    
    3,304
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,582Net loss for the year ended December 31, 2004
    
    
    
    
    
    
    
    
    
    
    (2,536
    )
    
    
    
    
    
    
    
    
    
    
    (2,536
    )Unrealized losses on securities designated as available for sale,net of related tax benefits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (469
    )
    
    
    
    
    
    
    (469
    )Balance at December 31, 2004
    
    
    8,760
    
    
    
    58,935
    
    
    
    38,234
    
    
    
    (263
    )
    
    
    (16,345
    )
    
    
    89,321Stock options exercised
    
    
    70
    
    
    
    632
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    702Cash dividends declared  $.58 per share
    
    
    
    
    
    
    
    
    
    
    (4,431
    )
    
    
    
    
    
    
    
    
    
    
    (4,431
    )Net earnings for the year ended December 31, 2005
    
    
    
    
    
    
    
    
    
    
    8,766
    
    
    
    
    
    
    
    
    
    
    
    8,766Purchase of treasury shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,195
    )
    
    
    (2,195
    )Unrealized losses on securities designated as available for sale,
net of related tax benefits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,400
    )
    
    
    
    
    
    
    (1,400
    )Balance at December 31, 2005
    
    
    8,830
    
    
    
    59,567
    
    
    
    42,569
    
    
    
    (1,663
    )
    
    
    (18,540
    )
    
    
    90,763Stock options exercised
    
    
    2
    
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20Cash dividends declared  $.60 per share
    
    
    
    
    
    
    
    
    
    
    (4,489
    )
    
    
    
    
    
    
    
    
    
    
    (4,489
    )FAS 123R
    
    
    
    
    
    
    137
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    137Net earnings for the year ended December 31, 2006
    
    
    
    
    
    
    
    
    
    
    5,874
    
    
    
    
    
    
    
    
    
    
    
    5,874Purchase of treasury shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,651
    )
    
    
    (1,651
    )Unrealized losses on securities designated as available for sale,
net of related tax benefits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    438
    
    
    
    
    
    
    
    438Balance at December 31, 2006
    
    $
    8,832
    
    
    $
    59,722
    
    
    
    43,954
    
    
    $
    (1,225
    )
    
    $
    (20,191
    )
    
    $
    91,092
  44




---



##### 



CAMCO FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 2006
    
    
    2005
    
    
    2004Cash flows from operating activities:Net earnings (loss) for the year
    
    $
    5,874
    
    
    $
    8,766
    
    
    $
    (2,536
    )Adjustments to reconcile net earnings (loss) to net cash
provided by (used in) operating activities:Amortization of premiums and discounts on investment and
mortgage-backed securities  net
    
    
    188
    
    
    
    466
    
    
    
    980Amortization of mortgage servicing rights  net
    
    
    1,252
    
    
    
    972
    
    
    
    1,184Depreciation and amortization
    
    
    1,247
    
    
    
    1,198
    
    
    
    1,450Amortization of purchase accounting adjustments  net
    
    
    89
    
    
    
    89
    
    
    
    89Stock option expense (FAS123R)
    
    
    137
    
    
    
    
    
    
    
    Provision for losses on loans
    
    
    1,440
    
    
    
    1,480
    
    
    
    1,620Provision for losses on real estate acquired through foreclosure
    
    
    99
    
    
    
    95
    
    
    
    113Amortization of deferred loan origination fees
    
    
    176
    
    
    
    96
    
    
    
    (57
    )(Gain) loss on sale of real estate acquired through foreclosure
    
    
    72
    
    
    
    23
    
    
    
    (347
    )Gain on sale of investment and mortgage-backed securities
transactions
    
    
    
    
    
    
    (113
    )
    
    
    (135
    )Gain on sale of branch deposits, premises and equipment, net
    
    
    (22
    )
    
    
    (8
    )
    
    
    (6,626
    )Federal Home Loan Bank stock dividends
    
    
    (1,610
    )
    
    
    (1,315
    )
    
    
    (1,032
    )Net increase in cash surrender value of life insurance
    
    
    (769
    )
    
    
    (751
    )
    
    
    (706
    )Gain on sale of loans
    
    
    (295
    )
    
    
    (683
    )
    
    
    (819
    )Loans originated for sale in the secondary market
    
    
    (52,641
    )
    
    
    (68,844
    )
    
    
    (115,266
    )Proceeds from sale of mortgage loans in the secondary market
    
    
    51,219
    
    
    
    70,417
    
    
    
    118,705Tax benefits related to exercise of stock options
    
    
    
    
    
    
    111
    
    
    
    84Increase (decrease) in cash, net of acquisitions, due to changes in:Accrued interest receivable
    
    
    (1,204
    )
    
    
    (794
    )
    
    
    59Prepaid expenses and other assets
    
    
    (181
    )
    
    
    5,101
    
    
    
    30Accounts payable and other liabilities
    
    
    435
    
    
    
    (7
    )
    
    
    554Federal income taxesCurrent
    
    
    
    
    
    
    
    
    
    
    (3,722
    )Deferred
    
    
    684
    
    
    
    176
    
    
    
    (88
    )Net cash provided by (used in) operating activities
    
    
    6,190
    
    
    
    16,475
    
    
    
    (6,466
    )Cash flows provided by (used in) investing activities:Proceeds from maturities of investment securities
    
    
    6,260
    
    
    
    10,375
    
    
    
    21,100Proceeds from sale of investment securities designated as available for sale
    
    
    
    
    
    
    302
    
    
    
    1,638Purchase of investment securities designated as available for sale
    
    
    (13,914
    )
    
    
    (36,094
    )
    
    
    (15,997
    )Purchase of investment securities designated as held to maturity
    
    
    
    
    
    
    
    
    
    
    (2,991
    )Proceeds from sale of mortgage-backed securities designated as
available for sale
    
    
    
    
    
    
    
    
    
    
    13,050Purchase of mortgage-backed securities designated as available for sale
    
    
    (1,967
    )
    
    
    (3,349
    )
    
    
    (43,301
    )Purchase of mortgage-backed securities designated as held to maturity
    
    
    
    
    
    
    
    
    
    
    Principal repayments on mortgage-backed securities
    
    
    12,832
    
    
    
    21,030
    
    
    
    30,624Loan disbursements
    
    
    (230,127
    )
    
    
    (331,469
    )
    
    
    (221,268
    )Purchases of loans
    
    
    (3,698
    )
    
    
    (11,141
    )
    
    
    (27,301
    )Principal repayments on loans
    
    
    250,409
    
    
    
    323,314
    
    
    
    212,450Loans transferred in sale of branch offices
    
    
    
    
    
    
    
    
    
    
    42,634Purchase of branch premises and equipment  net
    
    
    (3,014
    )
    
    
    (1,121
    )
    
    
    (727
    )Proceeds from sale of office premises and equipment
    
    
    158
    
    
    
    9
    
    
    
    8,579Proceeds from sale of real estate acquired through foreclosure
    
    
    1,119
    
    
    
    3,362
    
    
    
    4,988Additions to real estate acquired through foreclosure
    
    
    (21
    )
    
    
    (56
    )
    
    
    (76
    )Purchase of life insurance
    
    
    
    
    
    
    
    
    
    
    (1,596
    )Proceeds from redemption of life insurance
    
    
    641
    
    
    
    
    
    
    
    Purchase of London Financial Corporation, Inc., net
    
    
    
    
    
    
    
    
    
    
    (1,701
    )Net cash provided by (used in) investing activities
    
    
    18,678
    
    
    
    (24,838
    )
    
    
    20,105Net cash provided by (used in) operating and investing
activities (balance carried forward)
    
    
    24,868
    
    
    
    (8,363
    )
    
    
    13,639
 45




---



##### 



CAMCO FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
 
 2006
    
    
    2005
    
    
    2004Net cash provided by (used in) operating and investing
activities (balance brought forward)
    
    $
    24,868
    
    
    $
    (8,363
    )
    
    $
    13,639Cash flows provided by (used in) financing activities:Net increase (decrease) in deposits
    
    
    24,540
    
    
    
    (7,536
    )
    
    
    14,929Sale of branch deposits
    
    
    
    
    
    
    
    
    
    
    (63,657
    )Proceeds from Federal Home Loan Bank advances
    
    
    55,500
    
    
    
    56,500
    
    
    
    189,650Repayment of Federal Home Loan Bank advances
    
    
    (104,569
    )
    
    
    (57,453
    )
    
    
    (161,075
    )Net change in Repurchase Agreements
    
    
    (1,015
    )
    
    
    12,866
    
    
    
    Dividends paid on common stock
    
    
    (4,471
    )
    
    
    (4,438
    )
    
    
    (4,305
    )Proceeds from exercise of stock options
    
    
    20
    
    
    
    591
    
    
    
    468Purchase of treasury shares
    
    
    (1,651
    )
    
    
    (2,195
    )
    
    
    Decrease in advances by borrowers for taxes and insurance
    
    
    235
    
    
    
    219
    
    
    
    (466
    )Net cash used in financing activities
    
    
    (31,411
    )
    
    
    (1,446
    )
    
    
    24,456Net decrease in cash and cash equivalents
    
    
    (6,543
    )
    
    
    (9,809
    )
    
    
    (10,817
    )Cash and cash equivalents at beginning of year
    
    
    33,085
    
    
    
    42,894
    
    
    
    53,711Cash and cash equivalents at end of year
    
    $
    26,542
    
    
    $
    33,085
    
    
    $
    42,894Supplemental disclosure of cash flow information:Cash paid during the year for:Interest on deposits and borrowings
    
    $
    32,473
    
    
    $
    26,511
    
    
    $
    27,673Income taxes
    
    $
    2,499
    
    
    $
    (947
    )
    
    $
    2,674Supplemental disclosure of noncash investing activities:Transfers from loans to real estate acquired through foreclosure
    
    $
    4,092
    
    
    $
    3,725
    
    
    $
    6,591Issuance of mortgage loans upon sale of real estate acquired through
foreclosure
    
    $
    1,448
    
    
    $
    1,137
    
    
    $
    1,096Unrealized gains (losses) on securities designated as available for sale,
net of related tax effects
    
    $
    438
    
    
    $
    (1,325
    )
    
    $
    (469
    )Recognition of mortgage servicing rights in accordance with
SFAS No. 140
    
    $
    1,252
    
    
    $
    992
    
    
    $
    1,586Supplemental disclosure of noncash financing activities:Dividends declared but unpaid
    
    $
    1,120
    
    
    $
    1,102
    
    
    $
    1,109Fair value of assets acquired in London Financial transaction
    
    $
    
    
    
    $
    
    
    
    $
    54,441Less fair value of liabilities assumed
    
    $
    
    
    
    $
    
    
    
    $
    (50,371
    )Goodwill assigned in acquisition
    
    $
    
    
    
    $
    
    
    
    $
    4,070
  46




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
     Principles of Consolidation
  47




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Investment Securities and Mortgage-Backed Securities
  Loans Receivable
      48




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Loans Receivable
    Loan Origination and Commitment Fees
   Allowance for Loan Losses
  49




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Allowance for Loan Losses
     2006
    
    
    2005(In thousands)Impaired loans with related allowance
    
    $
    2,838
    
    
    $
    4,427Impaired loans with no related allowance
    
    
    4,678
    
    
    
    Total impaired loans
    
    $
    7,516
    
    
    $
    4,427
 2006
    
    
    2005
    
    
    2004(In thousands)Allowance on impaired loans
    
    $
    753
    
    
    $
    596
    
    
    $
    475Average balance of impaired loans
    
    $
    4,213
    
    
    $
    2,770
    
    
    $
    461Interest income recognized on impaired loans
    
    $
    192
    
    
    $
    189
    
    
    $
    100
  50




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Real Estate Acquired Through Foreclosure
  Office Premises and Equipment
  Goodwill
   Federal Income Taxes
  51




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Federal Income Taxes
  Earnings Per Share
  2006
    
    
    2005
    
    
    2004Weighted-average common shares
outstanding (basic)
    
    
    7,505,720
    
    
    
    7,644,917
    
    
    
    7,466,090Dilutive effect of assumed exercise
of stock options
    
    
    2,286
    
    
    
    3,789
    
    
    
    N/AWeighted-average common shares
outstanding (diluted)
    
    
    7,508,006
    
    
    
    7,648,706
    
    
    
    N/A
  Stock Option Plans
  52




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Stock Option Plans
  2006
    
    
    2005
    
    
    2004(In thousands, except per share data)Net earnings (loss)
    
    As reported
    
    $
    5,874
    
    
    $
    8,766
    
    
    $
    (2,536
    )Add: Stock-based compensation, expense includedIn reported income, net of tax
    
    
    121
    
    
    
    
    
    
    
    Deduct: Total Stock-based compensation expenseDetermined under fair value based methodFor awards, net of tax
    
    
    (121
    )
    
    
    (121
    )
    
    
    (28
    )Pro-forma
    
    $
    5,874
    
    
    $
    8,645
    
    
    $
    (2,564
    )Earnings (loss) per shareBasic
    
    As reported
    
    $
    0.78
    
    
    $
    1.15
    
    
    $
    (.34
    )Stock-based compensation, net of tax
    
    
    
    
    
    
    (.02
    )
    
    
    Pro-forma
    
    $
    0.78
    
    
    $
    1.13
    
    
    $
    (.34
    )Diluted
    
    As reported
    
    
    0.78
    
    
    
    1.15
    
    
    
    N/AStock-based compensation, net of tax
    
    
    
    
    
    
    (.02
    )
    
    
    N/APro-forma
    
    $
    0.78
    
    
    $
    1.13
    
    
    
    N/A
 53




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Stock Option Plans
   2006
    
    
    2005
    
    
    2004Weighted-
    
    
    
    
    
    
    Weighted-
    
    
    
    
    
    
    Weighted-average
    
    
    
    
    
    
    average
    
    
    
    
    
    
    averageexercise
    
    
    
    
    
    
    exercise
    
    
    
    
    
    
    exerciseShares
    
    
    price
    
    
    Shares
    
    
    price
    
    
    Shares
    
    
    priceOutstanding at beginning of year
    
    
    224,636
    
    
    $
    15.71
    
    
    
    218,324
    
    
    $
    12.91
    
    
    
    257,072
    
    
    $
    12.11Granted
    
    
    87,013
    
    
    
    14.08
    
    
    
    87,240
    
    
    
    16.51
    
    
    
    17,705
    
    
    
    17.17Exercised
    
    
    (2,243
    )
    
    
    8.92
    
    
    
    (70,162
    )
    
    
    8.43
    
    
    
    (52,911
    )
    
    
    8.83Forfeited
    
    
    (4,532
    )
    
    
    15.23
    
    
    
    (10,766
    )
    
    
    12.85
    
    
    
    (3,542
    )
    
    
    15.03Outstanding at end of year
    
    
    304,874
    
    
    $
    15.20
    
    
    
    224,636
    
    
    $
    15.71
    
    
    
    218,324
    
    
    $
    12.91Options exercisable at year-end
    
    
    222,333
    
    
    $
    15.37
    
    
    
    138,305
    
    
    $
    15.22
    
    
    
    175,542
    
    
    $
    12.05Weighted-average fair value of
options granted during the year
    
    
    
    
    
    $
    2.09
    
    
    
    
    
    
    $
    2.89
    
    
    
    
    
    
    $
    3.59
 54




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Stock Option Plans
  Number outstanding
    
    Range of exercise prices3,012
    
    $
    8.92 - 9.7598,366
    
    $
    11.36 - 14.16203,496
    
    $
    14.55 - 17.17Weighted-average exercise price
    
    $
    15.31Weighted-average remaining contractual life
    
    6.63 yearsAggregate intrinsic value
    
    $
    18,000
   55




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Fair Value of Financial Instruments
   Cash and Cash Equivalents
 Investment Securities and Mortgage-backed Securities
 Loans Held for Sale: .
 Loans Receivable
 Federal Home Loan Bank stock
 Cash surrender value of life insurance:
 Deposits
 Advances from the Federal Home Loan Bank
 56




---



##### 



Repurchase Agreements:
 Advances by Borrowers for Taxes and Insurance
 57




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Fair Value of Financial Instruments
 Commitments to Extend Credit
  December 31,2006
    
    
    2005Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fairvalue
    
    
    value
    
    
    value
    
    
    value(In thousands)Financial assetsCash and cash equivalents
    
    $
    26,542
    
    
    $
    26,542
    
    
    $
    33,085
    
    
    $
    33,085Investment securities available for sale
    
    
    56,053
    
    
    
    56,053
    
    
    
    47,907
    
    
    
    47,907Investment securities held to maturity
    
    
    710
    
    
    
    736
    
    
    
    919
    
    
    
    947Mortgage-backed securities available for sale
    
    
    51,453
    
    
    
    51,453
    
    
    
    61,607
    
    
    
    61,607Mortgage-backed securities held to maturity
    
    
    2,739
    
    
    
    2,734
    
    
    
    3,257
    
    
    
    3,251Loans held for sale
    
    
    3,664
    
    
    
    3,691
    
    
    
    1,947
    
    
    
    1,947Loans receivable
    
    
    824,578
    
    
    
    832,813
    
    
    
    846,763
    
    
    
    846,711Federal Home Loan Bank stock
    
    
    28,722
    
    
    
    28,722
    
    
    
    27,112
    
    
    
    27,112Cash surrender value of life insurance
    
    
    20,921
    
    
    
    20,921
    
    
    
    20,793
    
    
    
    20,793$
    1,015,382
    
    
    $
    1,023,665
    
    
    $
    1,043,390
    
    
    $
    1,043,360Financial liabilitiesDeposits
    
    $
    684,782
    
    
    $
    686,317
    
    
    $
    660,242
    
    
    $
    659,679Advances from the Federal Home Loan Bank
    
    
    245,288
    
    
    
    244,403
    
    
    
    294,357
    
    
    
    295,392Repurchase agreements
    
    
    11,851
    
    
    
    11,857
    
    
    
    12,866
    
    
    
    12,866Advances by borrowers for taxes and insurance
    
    
    3,484
    
    
    
    3,484
    
    
    
    3,249
    
    
    
    3,249$
    945,405
    
    
    $
    946,061
    
    
    $
    970,714
    
    
    $
    971,186
 Cash and Cash Equivalents
  Advertising
  58




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Effects of Recent Accounting Pronouncements
      59




---



##### 



Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement
Split-Dollar Life Insurance Arrangements,
 60




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE B  INVESTMENT SECURITIES AND MORTGAGE-BACKED SECURITIES
  2006Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Held to maturity:Municipal bonds
    
    $
    710
    
    
    $
    26
    
    
    $
    
    
    
    $
    736U.S. Government agency obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total investment securities held to maturity
    
    
    710
    
    
    
    26
    
    
    
    
    
    
    
    736Available for sale:U.S. Government agency obligations
    
    
    55,962
    
    
    
    2
    
    
    
    386
    
    
    
    55,578Municipal bonds
    
    
    291
    
    
    
    
    
    
    
    
    
    
    
    291Corporate equity securities
    
    
    159
    
    
    
    25
    
    
    
    
    
    
    
    184Total investment securities available for sale
    
    
    56,412
    
    
    
    27
    
    
    
    386
    
    
    
    56,053Total investment securities
    
    $
    57,122
    
    
    $
    53
    
    
    $
    386
    
    
    
    56,789
 2005Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Held to maturity:Municipal bonds
    
    $
    919
    
    
    $
    28
    
    
    $
    
    
    
    $
    947U.S. Government agency obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total investment securities held to maturity
    
    
    919
    
    
    
    28
    
    
    
    
    
    
    
    947Available for sale:U.S. Government agency obligations
    
    
    47,993
    
    
    
    
    
    
    
    619
    
    
    
    47,374Municipal bonds
    
    
    346
    
    
    
    2
    
    
    
    
    
    
    
    348Corporate equity securities
    
    
    159
    
    
    
    26
    
    
    
    
    
    
    
    185Total investment securities available for sale
    
    
    48,498
    
    
    
    28
    
    
    
    619
    
    
    
    47,907Total investment securities
    
    $
    49,417
    
    
    $
    56
    
    
    $
    619
    
    
    $
    48,854
 61




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE B  INVESTMENT SECURITIES AND MORTGAGE-BACKED SECURITIES
  EstimatedAmortized
    
    
    faircost
    
    
    value(In thousands)Due in one year or less
    
    $
    42,189
    
    
    $
    41,871Due after one year through five years
    
    
    14,684
    
    
    
    14,625Due after five years through ten years
    
    
    
    
    
    
    Due after ten years
    
    
    90
    
    
    
    109Total investment securities
    
    
    56,963
    
    
    
    56,605Corporate equity securities
    
    
    159
    
    
    
    184Total
    
    $
    57,122
    
    
    $
    56,789
   2006Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Held to maturity:FNMA
    
    $
    1,380
    
    
    $
    7
    
    
    $
    1
    
    
    $
    1,386FHLMC
    
    
    753
    
    
    
    2
    
    
    
    13
    
    
    
    742GNMA
    
    
    335
    
    
    
    3
    
    
    
    1
    
    
    
    337Other
    
    
    271
    
    
    
    
    
    
    
    2
    
    
    
    269Total mortgage-backed securities held to
maturity
    
    
    2,739
    
    
    
    12
    
    
    
    17
    
    
    
    2,734Available for sale:FNMA
    
    
    29,207
    
    
    
    21
    
    
    
    914
    
    
    
    28,314FHLMC
    
    
    18,453
    
    
    
    
    
    
    
    503
    
    
    
    17,950GNMA
    
    
    79
    
    
    
    3
    
    
    
    
    
    
    
    82CMO
    
    
    5,211
    
    
    
    
    
    
    
    104
    
    
    
    5,107Total mortgage-backed securities available for sale
    
    
    52,950
    
    
    
    24
    
    
    
    1,521
    
    
    
    51,453Total mortgage-backed securities
    
    $
    55,689
    
    
    $
    36
    
    
    $
    1,538
    
    
    $
    54,187
 62




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE B  INVESTMENT SECURITIES AND MORTGAGE-BACKED SECURITIES
 2005Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Held to maturity:FNMA
    
    $
    1,644
    
    
    $
    13
    
    
    $
    5
    
    
    $
    1,652FHLMC
    
    
    860
    
    
    
    1
    
    
    
    13
    
    
    
    848GNMA
    
    
    408
    
    
    
    5
    
    
    
    1
    
    
    
    412Other
    
    
    345
    
    
    
    
    
    
    
    6
    
    
    
    339Total mortgage-backed securities held to maturity
    
    
    3,257
    
    
    
    19
    
    
    
    25
    
    
    
    3,251Available for sale:FNMA
    
    
    33,681
    
    
    
    1
    
    
    
    1,167
    
    
    
    32,515FHLMC
    
    
    22,939
    
    
    
    
    
    
    
    635
    
    
    
    22,304GNMA
    
    
    97
    
    
    
    4
    
    
    
    
    
    
    
    101CMO
    
    
    6,819
    
    
    
    
    
    
    
    132
    
    
    
    6,687Total mortgage-backed securities available for sale
    
    
    63,536
    
    
    
    5
    
    
    
    1,934
    
    
    
    61,607Total mortgage-backed securities
    
    $
    66,793
    
    
    $
    24
    
    
    $
    1,959
    
    
    $
    64,858
  EstimatedAmortized cost
    
    
    fair value(In thousands)Due within one year or less
    
    $
    386
    
    
    $
    383Due after one year through five years
    
    
    18,085
    
    
    
    17,755Due after five years through ten years
    
    
    20,629
    
    
    
    19,914Due after ten years
    
    
    16,589
    
    
    
    16,135$
    55,689
    
    
    $
    54,187
  63




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE B  INVESTMENT AND MORTGAGE-BACKED SECURITIES
  2006Less than 12 months
    
    
    More than 12 monthsFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealizedvalue
    
    
    losses
    
    
    value
    
    
    losses(In thousands)Description of securitiesMortgage-backed securities:Held to maturity
    
    $
    290
    
    
    $
    
    
    
    $
    997
    
    
    $
    17Available for sale
    
    
    42
    
    
    
    
    
    
    
    43,524
    
    
    
    1,417U.S. Government agency:Available for sale
    
    
    9,957
    
    
    
    15
    
    
    
    43,623
    
    
    
    371Municipal bonds:Held to maturity
    
    
    141
    
    
    
    
    
    
    
    
    
    
    
    Available for sale
    
    
    
    
    
    
    
    
    
    
    80
    
    
    
    CMO:Held to maturity
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    Available for sale
    
    
    
    
    
    
    
    
    
    
    5,106
    
    
    
    104Total temporarily impaired securities
    
    $
    10,433
    
    
    $
    15
    
    
    $
    93,330
    
    
    $
    1,909
  2005Less than 12 months
    
    
    More than 12 monthsFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealizedvalue
    
    
    losses
    
    
    value
    
    
    losses(In thousands)Description of securitiesMortgage-backed securities:Held to maturity
    
    $
    1,101
    
    
    $
    14
    
    
    $
    516
    
    
    $
    11Available for sale
    
    
    20,783
    
    
    
    427
    
    
    
    40,642
    
    
    
    1,507U.S. Government agency:Available for sale
    
    
    37,646
    
    
    
    346
    
    
    
    9,727
    
    
    
    273Treasury:Available for sale
    
    
    135
    
    
    
    1
    
    
    
    
    
    
    
    Total temporarily impaired securities
    
    $
    59,665
    
    
    $
    788
    
    
    $
    50,885
    
    
    $
    1,791
  64




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE C  LOANS RECEIVABLE
  2006
    
    
    2005(In thousands)Conventional real estate loans:Existing residential properties
    
    $
    474,109
    
    
    $
    474,401Multi-family
    
    
    43,392
    
    
    
    51,475Nonresidential real estate
    
    
    100,189
    
    
    
    105,380Construction
    
    
    42,654
    
    
    
    64,601Commercial
    
    
    22,772
    
    
    
    20,958Home equity lines of credit
    
    
    116,436
    
    
    
    108,086Consumer, education and other loans
    
    
    25,754
    
    
    
    22,114Total
    
    
    825,306
    
    
    
    847,015Increase (decrease) due to:Unamortized yield adjustments
    
    
    (8
    )
    
    
    (266
    )Capitalized mortgage servicing rights
    
    
    6,424
    
    
    
    6,973Allowance for loan losses
    
    
    (7,144
    )
    
    
    (6,959
    )Loans receivable  net
    
    $
    824,578
    
    
    $
    846,763
   65




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE D  ALLOWANCE FOR LOAN LOSSES
  2006
    
    
    2005
    
    
    2004(In thousands)Balance at beginning of year
    
    $
    6,959
    
    
    $
    6,476
    
    
    $
    5,641Provision for losses on loans
    
    
    1,440
    
    
    
    1,480
    
    
    
    1,620Charge-offs of loans
    
    
    (1,439
    )
    
    
    (1,280
    )
    
    
    (1,597
    )Recoveries
    
    
    184
    
    
    
    283
    
    
    
    189Allowance resulting from acquisition
of London Financial
    
    
    
    
    
    
    
    
    
    
    623Balance at end of year
    
    $
    7,144
    
    
    $
    6,959
    
    
    $
    6,476
  NOTE E  OFFICE PREMISES AND EQUIPMENT
  2006
    
    
    2005(In thousands)Land
    
    $
    2,120
    
    
    $
    2,120Buildings and improvements
    
    
    13,140
    
    
    
    12,639Furniture, fixtures and equipment
    
    
    9,434
    
    
    
    9,95324,694
    
    
    
    24,712Less accumulated depreciation and amortization
    
    
    11,494
    
    
    
    13,143$
    13,200
    
    
    $
    11,569
 66




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE F  DEPOSITS
  2006
    
    
    2005Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate(Dollars in thousands)Noninterest-bearing checking accounts
    
    $
    31,706
    
    
    
    
    %
    
    $
    32,127
    
    
    
    
    %NOW accounts
    
    
    94,722
    
    
    
    1.36
    
    
    
    117,430
    
    
    
    0.87Money market demand accounts
    
    
    89,383
    
    
    
    3.59
    
    
    
    58,995
    
    
    
    2.07Passbook and statement savings accounts
    
    
    47,997
    
    
    
    0.26
    
    
    
    61,356
    
    
    
    0.25Certificates of deposit
    
    
    420,974
    
    
    
    4.62
    
    
    
    390,334
    
    
    
    3.71Total deposits
    
    $
    684,782
    
    
    
    3.52
    %
    
    $
    660,242
    
    
    
    2.55
    %
   2006Year ending December 31:
    
    (In thousands)2007
    
    $
    289,0302008
    
    
    92,9842009
    
    
    30,1422010
    
    
    5,0962011
    
    
    2,860Thereafter
    
    
    862Total certificate of deposit accounts
    
    $
    420,974
 67




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE G  ADVANCES FROM THE FEDERAL HOME LOAN BANK
  Maturing yearEnding December 31,
    
    Interest rate range
    
    
    2006
    
    
    2005(Dollars in thousands)2006
    
    
    1.94%-7.00
    %
    
    $
    
    
    
    $
    93,5692007
    
    
    2.44%-7.00
    %
    
    
    94,924
    
    
    
    45,4242008
    
    
    2.90%-7.00
    %
    
    
    45,233
    
    
    
    42,2332009
    
    
    2.78%-7.00
    %
    
    
    41,840
    
    
    
    34,8392010
    
    
    3.01%-7.00
    %
    
    
    10,357
    
    
    
    10,3572011
    
    
    3.25%-7.00
    %
    
    
    3,330
    
    
    
    7,330Thereafter
    
    
    2.66%-7.00
    %
    
    
    49,604
    
    
    
    60,605$
    245,288
    
    
    $
    294,357Weighted-average interest rate
    
    
    
    
    
    
    4.28
    %
    
    
    3.94
    %
 68




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE H  FEDERAL INCOME TAXES (CREDITS)
  2006
    
    
    2005
    
    
    2004(In thousands)Federal income taxes (benefits) computed at the
expected statutory rate
    
    $
    2,924
    
    
    $
    4,389
    
    
    $
    (1,427
    )Increase (decrease) in taxes resulting from:Nontaxable dividend and interest income
    
    
    (17
    )
    
    
    (25
    )
    
    
    (28
    )Increase in cash surrender value of life insurance  net
    
    
    (304
    )
    
    
    (255
    )
    
    
    (240
    )Other
    
    
    124
    
    
    
    32
    
    
    
    35Federal income tax provision (credits) per consolidated
financial statements
    
    $
    2,727
    
    
    $
    4,141
    
    
    $
    (1,660
    )
  Taxes (payable) refundable on temporarydifferences at statutory rate:
    
    2006
    
    
    2005(In thousands)Deferred tax liabilities:FHLB stock dividends
    
    $
    (4,621
    )
    
    $
    (4,073
    )Mortgage servicing rights
    
    
    (2,184
    )
    
    
    (2,371
    )Book versus tax depreciation
    
    
    (1,031
    )
    
    
    (1,013
    )Original issue discount
    
    
    (678
    )
    
    
    (531
    )Purchase price adjustments
    
    
    (173
    )
    
    
    (162
    )Other liabilities, net
    
    
    (9
    )
    
    
    (4
    )Total deferred tax liabilities
    
    
    (8,696
    )
    
    
    (8,154
    )Deferred tax assets:General loan loss allowance
    
    
    2,429
    
    
    
    2,366Deferred income
    
    
    358
    
    
    
    378Deferred compensation
    
    
    1,007
    
    
    
    778Deferred loan fees
    
    
    5
    
    
    
    309Other assets
    
    
    17
    
    
    
    127Unrealized losses on securities designated as
available for sale
    
    
    631
    
    
    
    857Total deferred tax assets
    
    
    4,447
    
    
    
    4,815Net deferred tax liability
    
    $
    (4,249
    )
    
    $
    (3,339
    )
 69




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE H  FEDERAL INCOME TAXES (CREDITS)
   NOTE I  COMMITMENTS
     70




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE I  COMMITMENTS
  Year endingDecember 31,
    
    (In thousands)2007
    
    $
    3372008
    
    
    2842009
    
    
    2532010
    
    
    2392011
    
    
    1682012 and thereafter
    
    
    576$
    1,857
  NOTE J  REGULATORY CAPITAL
   71




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE J  REGULATORY CAPITAL
    Camco:
    
    At December 31, 2006To 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)
    
    $
    92,135
    
    
    
    12.46
    %
    
    
    3$59,135
    
    
    
    38.0
    %
    
    
    N/A
    
    
    
    N/ATier I capital
(to risk-weighted assets)
    
    $
    84,991
    
    
    
    11.50
    %
    
    
    3$29,568
    
    
    
    34.0
    %
    
    
    N/A
    
    
    
    N/ATier I leverage
    
    $
    84,991
    
    
    
    8.22
    %
    
    
    3$41,351
    
    
    
    34.0
    %
    
    
    N/A
    
    
    
    N/A
 Advantage:
    
    As of December 31, 2006To 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)
    
    $
    84,859
    
    
    
    11.48
    %
    
    
    3$59,130
    
    
    
    38.0
    %
    
    
    3$73,913
    
    
    
    310.0
    %Tier I capital
(to risk-weighted assets)
    
    $
    77,715
    
    
    
    10.51
    %
    
    
    3$29,577
    
    
    
    34.0
    %
    
    
    3$44,347
    
    
    
    3  6.0
    %Tier I leverage
    
    $
    77,715
    
    
    
    7.52
    %
    
    
    3$41,351
    
    
    
    34.0
    %
    
    
    3$51,689
    
    
    
    3  5.0
    %
 72




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE J  REGULATORY CAPITAL
 Camco:
    
    As of December 31, 2005To 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)
    
    $
    92,005
    
    
    
    12.39
    %
    
    
    3$59,391
    
    
    
    38.0
    %
    
    
    N/A
    
    
    
    N/ATier I capital
(to risk-weighted assets)
    
    $
    85,046
    
    
    
    11.46
    %
    
    
    3$29,696
    
    
    
    34.0
    %
    
    
    N/A
    
    
    
    N/ATier I leverage
    
    $
    85,046
    
    
    
    8.00
    %
    
    
    3$42,549
    
    
    
    34.0
    %
    
    
    N/A
    
    
    
    N/A
 Advantage:
    
    As of December 31, 2005To 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)
    
    $
    83,052
    
    
    
    11.21
    %
    
    
    3$59,280
    
    
    
    38.0
    %
    
    
    3$74,100
    
    
    
    310.0
    %Tier I capital
(to risk-weighted assets)
    
    $
    76,093
    
    
    
    10.27
    %
    
    
    3$29,640
    
    
    
    34.0
    %
    
    
    3$44,460
    
    
    
    3  6.0
    %Tier I leverage
    
    $
    76,093
    
    
    
    7.23
    %
    
    
    3$42,126
    
    
    
    34.0
    %
    
    
    3$52,657
    
    
    
    3  5.0
    %
  NOTE K  BENEFIT PLANS
   73




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE L  CAMCO FINANCIAL CORPORATION CONDENSED FINANCIAL INFORMATION
  CAMCO FINANCIAL CORPORATION
STATEMENTS OF FINANCIAL CONDITION
 2006
    
    
    2005ASSETSCash in Advantage
    
    $
    123
    
    
    $
    99Interest-bearing deposits in other financial institutions
    
    
    5,172
    
    
    
    7,010Investment securities designated as available for sale
    
    
    184
    
    
    
    185Investment in Advantage
    
    
    83,799
    
    
    
    81,792Investment in Camco Title
    
    
    1,056
    
    
    
    909Office premises and equipment  net
    
    
    1,248
    
    
    
    1,285Cash surrender value of life insurance
    
    
    1,136
    
    
    
    1,225Prepaid expenses and other assets
    
    
    281
    
    
    
    160Deferred federal income tax assets
    
    
    
    
    
    
    54Total assets
    
    $
    92,999
    
    
    $
    92,719LIABILITIES AND STOCKHOLDERS EQUITYAccounts payable and other accrued liabilities
    
    $
    381
    
    
    $
    413Dividends payable
    
    
    1,120
    
    
    
    1,102Accrued federal income taxes
    
    
    406
    
    
    
    441Deferred federal income taxes
    
    
    
    
    
    
    Total liabilities
    
    
    1,907
    
    
    
    1,956Stockholders equityCommon stock
    
    
    8,832
    
    
    
    8,830Additional paid-in capital
    
    
    59,722
    
    
    
    59,567Retained earnings
    
    
    43,954
    
    
    
    42,569Unrealized gains (losses) on securities designated as available for sale,
net of related tax effects
    
    
    (1,225
    )
    
    
    (1,663
    )Treasury stock, at cost
    
    
    (20,191
    )
    
    
    (18,540
    )Total stockholders equity
    
    
    91,092
    
    
    
    90,763Total liabilities and stockholders equity
    
    $
    92,999
    
    
    $
    92,719
 74




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE L  CAMCO FINANCIAL CORPORATION CONDENSED FINANCIAL INFORMATION
 CAMCO FINANCIAL CORPORATION
STATEMENTS OF OPERATIONS
 2006
    
    
    2005
    
    
    2004IncomeDividends from Advantage
    
    $
    4,800
    
    
    $
    7,000
    
    
    $
    3,500Dividends from Camco Title
    
    
    
    
    
    
    250
    
    
    
    Interest and other income
    
    
    366
    
    
    
    239
    
    
    
    171Gain on sale of investments
    
    
    
    
    
    
    113
    
    
    
    45Gain on sale of fixed assets
    
    
    7
    
    
    
    
    
    
    
    (Excess distributions from)undistributed earnings
of Advantage
    
    
    1,568
    
    
    
    2,145
    
    
    
    (5,595
    )(Excess distribution from) undistributed earnings
of Camco Title
    
    
    148
    
    
    
    (61
    )
    
    
    165Total income (loss)
    
    
    6,889
    
    
    
    9,686
    
    
    
    (1,714
    )General, administrative and other expense
    
    
    1,357
    
    
    
    1,233
    
    
    
    1,152Earnings (loss) before federal income tax credits
    
    
    5,532
    
    
    
    8,453
    
    
    
    (2,866
    )Federal income tax credits
    
    
    (342
    )
    
    
    (313
    )
    
    
    (330
    )Net earnings (loss)
    
    $
    5,874
    
    
    $
    8,766
    
    
    $
    (2,536
    )
 75




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE L  CAMCO FINANCIAL CORPORATION CONDENSED FINANCIAL INFORMATION
 CAMCO FINANCIAL CORPORATION
STATEMENTS OF CASH FLOWS
 2006
    
    
    2005
    
    
    2004Cash flows from operating activities:Net earnings (loss) for the year
    
    $
    5,874
    
    
    $
    8,766
    
    
    $
    (2,536
    )Adjustments to reconcile net earnings (loss) to net cash
flows provided by (used in) operating activities:(Undistributed earnings) distributions in excess of earnings of Advantage
    
    
    (1,568
    )
    
    
    (2,145
    )
    
    
    5,595Excess distribution from (undistributed net earnings of)
Camco Title
    
    
    (148
    )
    
    
    61
    
    
    
    (165
    )Gain on sale of office premises and equipment
    
    
    (7
    )
    
    
    
    
    
    
    Gain on sale of investments
    
    
    
    
    
    
    (113
    )
    
    
    (45
    )Depreciation and amortization
    
    
    49
    
    
    
    53
    
    
    
    51Increase (decrease) in cash due to changes in:Prepaid expenses and other assets
    
    
    17
    
    
    
    5
    
    
    
    (60
    )Accounts payable and other liabilities
    
    
    (32
    )
    
    
    9
    
    
    
    46Accrued federal income taxes
    
    
    (35
    )
    
    
    (70
    )
    
    
    211Deferred federal income taxes
    
    
    54
    
    
    
    92
    
    
    
    (115
    )Tax benefits related to exercise of stock options
    
    
    
    
    
    
    111
    
    
    
    84Net cash provided by operating activities
    
    
    4,204
    
    
    
    6,769
    
    
    
    3,066Cash flows from investing activities:Purchase of investment securities
    
    
    
    
    
    
    (100
    )
    
    
    Proceeds from redemption of available for sale securities
    
    
    
    
    
    
    302
    
    
    
    127Net increase in cash surrender value of life insurance
    
    
    (37
    )
    
    
    (38
    )
    
    
    (39
    )Purchase of office premises and equipment
    
    
    (29
    )
    
    
    
    
    
    
    (3
    )Proceeds from sale of office premises and equipment
    
    
    24
    
    
    
    
    
    
    
    Proceeds from redemption of life insurance
    
    
    126
    
    
    
    
    
    
    
    (Increase) decrease in interest-bearing deposits in other
financial institutions
    
    
    1,838
    
    
    
    (1,015
    )
    
    
    5,320Purchase of London Financial  net
    
    
    
    
    
    
    
    
    
    
    (4,717
    )Net cash provided by (used in) investing activities
    
    
    1,922
    
    
    
    (851
    )
    
    
    688Cash flows from financing activities:Proceeds from exercise of stock options
    
    
    20
    
    
    
    591
    
    
    
    468Dividends paid
    
    
    (4,471
    )
    
    
    (4,438
    )
    
    
    (4,305
    )Purchase of treasury shares
    
    
    (1,651
    )
    
    
    (2,195
    )
    
    
    Net cash used in financing activities
    
    
    (6,102
    )
    
    
    (6,042
    )
    
    
    (3,837
    )Net increase (decrease) in cash and cash equivalents
    
    
    24
    
    
    
    (124
    )
    
    
    (83
    )Cash and cash equivalents at beginning of year
    
    
    99
    
    
    
    223
    
    
    
    306Cash and cash equivalents at end of year
    
    $
    123
    
    
    $
    99
    
    
    $
    223
  76




---



##### 



CAMCO FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE N  QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
  Three Months EndedDecember 31,
    
    
    September 30,
    
    
    June 30,
    
    
    March 31,2006:
    
    (In thousands, except per share data)Total interest income
    
    $
    16,174
    
    
    $
    15,900
    
    
    $
    15,463
    
    
    $
    15,152Total interest expense
    
    
    8,742
    
    
    
    8,648
    
    
    
    8,008
    
    
    
    7,373Net interest income
    
    
    7,432
    
    
    
    7,252
    
    
    
    7,455
    
    
    
    7,779Provision for losses on loans
    
    
    360
    
    
    
    360
    
    
    
    360
    
    
    
    360Other income
    
    
    1,016
    
    
    
    1,246
    
    
    
    1,465
    
    
    
    1,306General, administrative and other expense
    
    
    6,295
    
    
    
    6,410
    
    
    
    5,943
    
    
    
    6,262Earnings before income taxes
    
    
    1,793
    
    
    
    1,728
    
    
    
    2,617
    
    
    
    2,463Federal income taxes
    
    
    533
    
    
    
    608
    
    
    
    802
    
    
    
    784Net earnings
    
    $
    1,260
    
    
    $
    1,120
    
    
    $
    1,815
    
    
    $
    1,679Earnings per share:Basic
    
    $
    0.17
    
    
    $
    0.15
    
    
    $
    0.24
    
    
    $
    0.22Diluted
    
    $
    0.17
    
    
    $
    0.15
    
    
    $
    0.24
    
    
    $
    0.22
 Three Months EndedDecember 31,
    
    
    September 30,
    
    
    June 30,
    
    
    March 31,2005:
    
    (In thousands, except per share data)Total interest income
    
    $
    15,157
    
    
    $
    14,455
    
    
    $
    13,961
    
    
    $
    13,505Total interest expense
    
    
    7,058
    
    
    
    6,902
    
    
    
    6,432
    
    
    
    6,137Net interest income
    
    
    8,099
    
    
    
    7,553
    
    
    
    7,529
    
    
    
    7,368Provision for losses on loans
    
    
    520
    
    
    
    360
    
    
    
    360
    
    
    
    240Other income
    
    
    1,709
    
    
    
    1,543
    
    
    
    1,634
    
    
    
    1,706General, administrative and other expense
    
    
    5,644
    
    
    
    5,735
    
    
    
    5,810
    
    
    
    5,565Earnings (loss) before income taxes (credits)
    
    
    3,644
    
    
    
    3,001
    
    
    
    2,993
    
    
    
    3,269Federal income taxes (credits)
    
    
    1,174
    
    
    
    963
    
    
    
    953
    
    
    
    1,051Net earnings (loss)
    
    $
    2,470
    
    
    $
    2,038
    
    
    $
    2,040
    
    
    $
    2,218Earnings (loss) per share:Basic
    
    $
    0.32
    
    
    $
    0.27
    
    
    $
    0.27
    
    
    $
    0.29Diluted
    
    $
    0.32
    
    
    $
    0.27
    
    
    $
    0.27
    
    
    $
    0.29
 77




---



##### 



Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure.
  
 Item 9A. Controls and Procedures.
    
 Item 9B.
Other Information.
  
 PART III
 
 Item 10.
Directors,  Executive Officers and Corporate Governance of the Registrant.
  www.advantagebank.com/site/charters&policies.html
 
 Item 11. Executive Compensation.
  
 Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters.
    78




---



##### 



Equity Compensation Plan Information
 (a)
    
    (b)
    
    (c)Number of securitiesremaining available forfuture issuance underNumber of securities
    
    
    
    
    
    equity compensationto be issued upon
    
    Weighted-average
    
    plans (excludingexercise of
    
    exercise price of
    
    securitiesPlan Category
    
    outstanding options
    
    outstanding options
    
    reflected in column (a))Equity compensation
plans approved by
security
holders
    
    
    222,333
    
    
    $
    15.37
    
    
    
    247,810
 Item 13.
Certain Relationships and Related Transactions, and Director
Independence.
  Item 14. Principal Accountant Fees and Services.
  79




---



##### 



PART IV
 Item 15. Exhibits and Financial Statement Schedules.
 Exhibits.3(i)
    
    Certificate of Incorporation3(ii)
    
    Bylaws10(i)
    
    Employment Agreement between Camco and Richard C. Baylor10(ii)
    
    Line of Credit Agreement with Key Bank10(iii)
    
    Form of 2002 Salary Continuation Agreement10(iv)
    
    Form of 1996 Salary Continuation Agreement10(v)
    
    Form of Executive Deferred Compensation Agreement10(vi)
    
    First Ashland Financial Corporation 1995 Stock Option and Incentive Plan10(vii)
    
    Incentive Stock Option Award Agreement Pursuant to the First Ashland Financial
Corporation 1995 Stock Option and Incentive Plan10(viii)
    
    Non-Qualified Stock Option Award Agreement Pursuant to the First Ashland
Financial Corporation 1995 Stock Option and Incentive Plan10(ix)
    
    Camco Financial Corporation 2002 Equity Incentive Plan10(x)
    
    Incentive Stock Option Award Agreement Pursuant to the Camco
Financial Corporation 2002 Equity and Incentive Plan10(xi)
    
    Non-Qualified Stock Option Award Agreement Pursuant to the Camco Financial
Corporation 2002 Equity and Incentive Plan10(xii)
    
    Camco Financial Corporation 1995 Stock Option and Incentive Plan10(xiii)
    
    Westwood Homestead Financial Corporation 1997 Stock Option Plan10(xiv)
    
    Incentive Stock Option Award Agreement Pursuant to the Westwood Homestead
Financial Corporation 1997 Stock Option Plan10(xv)
    
    Non-Qualified Stock Option Award Agreement Pursuant to the Westwood Homestead
Financial Corporation 1997 Stock Option Plan10(xvi)
    
    Summary of Bonus Plan10(xvii)
    
    Change of Control Agreement including Attachment A listing participants21
    
    Subsidiaries of Camco23(i)
    
    Consent of Plante Moran PLLC regarding Camcos Consolidated Financial
Statements and Form S-823(ii)
    
    Consent of Grant Thornton LLP regarding Camcos Consolidated Financial
Statements and Form S-8 for the year ending December 31, 200431(i)
    
    Certification of Chief Executive Officer31(ii)
    
    Certification of Chief Financial Officer32(i)
    
    Certification of Chief Executive Officer32(ii)
    
    Certification of Chief Financial Officer
 80




---



##### 



SIGNATURES
  Camco Financial CorporationBy
    /s/ Richard C. BaylorRichard C. Baylor,Chairman, President, Chief Executive Officer and a
Director  By
    
    /s/ Jeffrey T. Tucker
    
    
    
    By
    
    /s/ Robert C. Dix, Jr.Jeffrey T. Tucker,
    
    
    
    
    
    Robert C. Dix, Jr.,Director
    
    
    
    
    
    DirectorDate: February 27, 2007
    
    
    
    Date: February 27, 2007By
    
    
    
    
    
    By
    
    /s/ Paul D. LeakeCarson K. Miller
    
    
    
    
    
    Paul D. Leake,Director
    
    
    
    
    
    DirectorDate: February 27, 2007
    
    
    
    Date: February 27, 2007By
    
    /s/ Edward D. Goodyear
    
    
    
    By
    
    /s/ Terry A. FeickEdward D. Goodyear,
    
    
    
    
    
    Terry A. Feick,Director
    
    
    
    
    
    DirectorDate: February 27, 2007
    
    
    
    Date: February 27, 2007By
    
    /s/ J. Timothy Young
    
    
    
    By
    
    /s/ Susan J. InsleyJ. Timothy Young
    
    
    
    
    
    Susan J. Insley,Director
    
    
    
    
    
    DirectorDate: February 27, 2007
    
    
    
    Date: February 27, 2007By
    
    /s/ Mark A. Severson
    
    
    
    By
    
    /s/ Douglas F MockMark A. Severson,
    
    
    
    
    
    Douglas F. Mock,Chief Financial Officer
    
    
    
    
    
    DirectorDate: February 27, 2007
    
    
    
    Date: February 27, 2007




---



##### 



INDEX TO EXHIBITS
 ITEM
    
    DESCRIPTIONExhibit 3(i)
    
    Third Restated Certificate of
Incorporation of Camco Financial
Corporation, as amended
    
    Incorporated by reference to Camcos
Annual Report on Form 10-K for the
fiscal year ended December 31, 1999,
Film no. 585779 (1999 Form 10-K),
Exhibit 3(i)Exhibit 3(ii)
    
    2003 Amended and Restated
By-Laws of Camco Financial
CorporationExhibit 10(i)
    
    Employment Agreement dated
January 1, 2001, by and between
Camco Financial Corporation and
Richard C. Baylor
    
    Incorporated by reference to Camcos
Annual Report on Form 10-K for the
fiscal year ended December 31, 2001,
Exhibit 10(i)Exhibit 10(ii)
    
    Line of Credit Agreement with
Key Bank
    
    Incorporated by reference to Camcos
form 10-Q for the quarters ended
9/30/06, Exhibit 10.(i)Exhibit 10(iii)
    
    Form of 2002 Salary Continuation
Agreement, including individualized
Schedule As for each participant
    
    Incorporated by reference to Camcos
Annual Report on Form 10-K for the
fiscal year ended December 31, 2003
(2003 Form 10-K), Exhibit 10(iv)Exhibit 10(iv)
    
    Form of 1996 Salary Continuation
Agreement, including Schedule As
for D. Edward Rugg and Edward A.
Wright
    
    Incorporated by reference to Camcos
Annual Report on Form 10-K for the
fiscal year ended December 31, 2004
(2004 Form 10-K), Exhibit 10(iv)Exhibit 10(v)
    
    Form of Executive Deferred
Compensation Agreement
    
    Incorporated by reference to Camcos
2003 Form 10-K, Exhibit 10(vi)Exhibit 10(vi)
    
    First Ashland Financial Corporation
1995 Stock Option and Incentive
Plan
    
    Incorporated by reference to Camcos
Form S-8 filed on June 10, 2002,
File Number 333-90142, Exhibit 4.01Exhibit 10(vii)
    
    Incentive Stock Option Award
Agreement Pursuant to the First
Ashland Financial Corporation
1995 Stock Option and Incentive
Plan
    
    Incorporated by reference to Camcos
Annual Report on Form 10-K for the
fiscal year ended December 31, 2004
(2004 Form 10-K), Exhibit 10(vii)Exhibit 10(viii)
    
    Non-Qualified Stock Option Award
Agreement Pursuant to the First
Ashland Financial Corporation
1995 Stock Option and Incentive
Plan
    
    Incorporated by reference to Camcos
Annual Report on Form 10-K for the
fiscal year ended December 31, 2004
(2004 Form 10-K), Exhibit 10(viii)Exhibit 10(ix)
    
    Camco Financial Corporation 2002
Equity Incentive Plan
    
    Incorporated by reference to Camcos
Form S-8 filed on June 10, 2002, File
Number 333-90152, Exhibit 4.01Exhibit 10(x)
    
    Incentive Stock Option Award
Agreement Pursuant to the Camco
Financial Corporation 2002 Equity
and Incentive Plan
    
    Incorporated by reference to Camcos
Form 8K filed on February 2, 2005,
film no. 05570393 (2005 8-K),
Exhibit 10.5Exhibit 10(xi)
    
    Non-Qualified Stock Option Award
Agreement Pursuant to the Camco
Financial Corporation 2002 Equity
and Incentive Plan
    
    Incorporated by reference to Camcos
Annual Report on Form 10-K for the
fiscal year ended December 31, 2004
(2004 Form 10-K), Exhibit 10(xi)




---



##### 



ITEM
    
    DESCRIPTIONExhibit 10(xii)
    
    Camco Financial Corporation 1995
Stock Option and Incentive Plan
    
    Incorporated by reference to Camcos
Form S-8 filed on June 10, 2002, File
Number 333-90166, Exhibit 4.01Exhibit 10(xiii)
    
    Westwood Homestead Financial
Corporation 1997 Stock Option Plan
    
    Incorporated by reference to Camcos
Form S-8 filed on January 5, 2000,
File Number 333-94113, Exhibit 4.01Exhibit 10(xiv)
    
    Incentive Stock Option Award
Agreement Pursuant to the Westwood
Homestead Financial Corporation
1997 Stock Option Plan
    
    Incorporated by reference to the 2005
8K, Exhibit 10.4Exhibit 10(xv)
    
    Non-Qualified Stock Option Award
Agreement Pursuant to the Westwood
Homestead Financial Corporation
1997 Stock Option Plan
    
    Incorporated by reference to the 2005
8K, Exhibit 10.3Exhibit 10(xvi)
    
    Summary of Cash Incentive Plan
    
    Incorporated by reference to Camcos
Annual Report on Form 10-K for the
Fiscal year ended 12/31/05, Exhibit
10(xvi)Exhibit 10(xvii)
    
    Change of Control Agreement
including Attachment A listing
participants
    
    Incorporated by reference to Camcos
Annual Report on Form 10-K for the
fiscal year ended 12/31/05, Exhibit
10(xvii)Exhibit 21
    
    Subsidiaries of Camco
    
    Incorporated by reference to Camcos
2003 Form 10-K, Exhibit 21Exhibit 23
    
    Consent of Plante Moran PLLC
regarding Camcos Consolidated
Financial Statements and Form S-8Exhibit 23(i)
    
    Consent of Grant Thornton LLP
Regarding Camcos Consolidated
Financial Statements and Form S-8
for the year ended December 31, 2004Exhibit 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