##### 








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##### 



Introduction
    
    
    3 / 4Customer Focus
    
    
    5 / 6Financial Highlights
    
    
    7Market Footprint
    
    
    8Board of Directors
    
    
    9Senior Management
    
    
    10Letter to Stockholders
    
    
    11 / 12Stockholder Information
    
    
    13 / 14Financials
    
    Insert




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##### 








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##### 








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##### 








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##### 








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##### 








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##### 



PER SHARE:
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003Net Earnings
 Diluted+
    
    $
    0.61
    
    
    $
    0.78
    
    
    $
    1.15
    
    
    $
    (0.34
    )
    
    $
    0.92Net Earnings
 Diluted+
    
    $
    0.61
    
    
    $
    0.78
    
    
    $
    1.15
    
    
    $
    0.79
    
    
    $
    1.03- OperationsTangible Book Value
    
    $
    11.45
    
    
    $
    11.31
    
    
    $
    11.09
    
    
    $
    10.78
    
    
    $
    12.62(end of period)
 AT YEAR END:
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003(In Thousand)Total Assets
    
    $
    1,023,261
    
    
    $
    1,048,216
    
    
    $
    1,071,248
    
    
    $
    1,065,823
    
    
    $
    1,039,151Loans Receivable Net *
    
    $
    815,271
    
    
    $
    821,818
    
    
    $
    841,737
    
    
    $
    829,713
    
    
    $
    804,981Investments and MBS
    
    $
    91,688
    
    
    $
    110,955
    
    
    $
    113,690
    
    
    $
    108,429
    
    
    $
    113,758Deposits
    
    $
    692,184
    
    
    $
    684,782
    
    
    $
    660,242
    
    
    $
    667,778
    
    
    $
    671,274Federal Home Loan
    
    $
    220,981
    
    
    $
    257,139
    
    
    $
    307,223
    
    
    $
    295,310
    
    
    $
    262,735Bank Advances &
Borrowings
 RATIOS:
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003ROATE
    
    
    5.37
    %
    
    
    6.98
    %
    
    
    10.45
    %
    
    
    (2.83
    )%
    
    
    7.35
    %ROATE  Operations
    
    
    5.37
    %
    
    
    6.98
    %
    
    
    10.45
    %
    
    
    6.49
    %
    
    
    8.07
    %Net Interest Margin
    
    
    2.90
    %
    
    
    3.14
    %
    
    
    3.04
    %
    
    
    2.49
    %
    
    
    2.34
    %Tangible Equity/Assets
    
    
    8.01
    %
    
    
    8.06
    %
    
    
    7.85
    %
    
    
    7.75
    %
    
    
    8.62
    %Allowance for loan
    
    
    0.81
    %
    
    
    0.87
    %
    
    
    0.82
    %
    
    
    0.78
    %
    
    
    0.71
    %loss/LoansNon-Performing
    
    
    2.84
    %
    
    
    2.06
    %
    
    
    1.54
    %
    
    
    1.13
    %
    
    
    1.45
    %Assets/Assets
 
 +
    
    Except in 2004, which is Basic Net Earnings per Share*
    
    Includes loans held for sale




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##### 








---



##### 



CPA
   
 
 
 
 
  
 RETIREMENTS
 Dr. Samuel W. Speck
 
 Robert C. Dix, Jr.




---



##### 



SENIOR MANAGEMENT
 ADDITIONS




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##### 




    
    Closing three underperforming offices and consolidating several consumer lending functions with
commensurate staff reductions,
 
    
    Reducing four banking divisions to two,
 
    
    Implementing a variety of fee income generating actions, and
    
    Strengthening our ability to grow business banking with the addition of several experienced
commercial bank lenders in our markets.
  
    
    Our loan delinquency year over year for residential mortgages actually
decreased about 18% and foreclosures in process are down 49% from previous year
levels, counter to the trend in Ohio.
 
    
    Deposits grew by $7.40 million, or 1.08%, and business-related deposits grew by $7.6
million  an 18.5% increase. Not an exact time period comparison, but the FDIC reported
that deposits in Ohio grew only .23% from June 2006 to June 2007. Growing our deposits
helped us achieve an internal goal to reduce our borrowed funds, which in our opinion,
dont carry the same value as
depositor relationships over the long term. Growing deposits will be an ongoing challenge
for banks, especially in slower growth markets of the Midwest. Yet, stable deposit growth
allows us to grow our bank and serve the financial needs of our customers.
 
    
    We offered enhanced electronic banking products and services, including a
redesigned Internet Banking website (www.advantagebank.com) and a suite
of business checking products. We introduced Advantage Deposit 24 to provide our
business banking customers with the ability to conveniently deposit checks
electronically at their place of business. All of these products and services
are designed to enhance customer service and increase banking relationships 
with the added result of increasing fee income and deposits for the bank.
 
    
    We revised our organization structure to assure strategic focus on lending and
credit operations, to promote a more direct flow of information to and from me, as
CEO, and to enhance communications and execution throughout our organization.
 
    
    We enhanced employee training with a focus on meeting and exceeding customer
needs and remain committed to the development of what we believe are the best
people in banking.
 
    
    While closing three underperforming offices, we opened a new banking center in London,
Ohio, to expand our existing presence in this community located near Columbus in Central
Ohio. Central Ohio remains one of the better growth opportunity markets in our footprint.
We will continue to assess our footprint to improve our locations whenever appropriate to
better serve customers.




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##### 








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##### 



schorey@advantagebank.com
  
 
  
 ir@advantagebank.com




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##### 








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##### 



Camco Financial Corporation
 6901
Glenn Highway  Cambridge, Ohio 43725




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##### 



Audited Financial Statements and Managements Discussion and Analysis




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##### 



SELECTED
    CONSOLIDATED FINANCIAL DATA
     SELECTED
    CONSOLIDATED FINANCIAL
    DATA: (1)
  As of December 31:2007


2006


2005


2004


2003(In thousands)Total amount of:Assets

$
1,023,261


$
1,048,216


$
1,071,248


$
1,065,823


$
1,039,151Interest-bearing deposits in other financial institutions


5,432



12,673



11,299



17,045



30,904Securities available for sale  at market


88,919



107,506



109,514



100,160



104,924Securities held to maturity


2,769



3,449



4,176



8,269



8,834Loans receivable 
    net (2)


815,271



821,818



841,737



829,713



804,981Deposits


692,184



684,782



660,242



667,778



671,274FHLB advances and other borrowings


220,981



257,139



307,223



295,310



262,735Stockholders equity


88,634



91,092



90,763



89,321



92,543   SELECTED
    CONSOLIDATED OPERATING
    DATA: (1)
  For the year ended December 31:2007


2006


2005


2004


2003(In thousands, except per share data)Total interest income

$
65,317


$
62,689


$
57,078


$
52,948


$
54,875Total interest expense


36,421



32,771



26,529



27,512



31,327Net interest income


28,896



29,918



30,549



25,436



23,638Provision for losses on loans


1,495



1,440



1,480



1,620



1,446Net interest income after provision for losses on loans


27,401



28,478



29,069



23,816



22,192Other income


5,850



5,033



6,584



7,082



11,411Sale of branch deposits and premises, net










8



6,626



General, administrative and other expense


26,985



24,910



22,754



22,841



22,404FHLB advance prepayment fees














18,879



1,292Earnings (loss) before federal income taxes (credits)


6,266



8,601



12,907



(4,196
)


9,907Federal income taxes (credits)


1,765



2,727



4,141



(1,660
)


3,051Net earnings (loss)


4,501



5,874



8,766



(2,536
)


6,856Prepayment fees, restructuring charges (credits) and gain on
    sale of Ashland branches (net of related tax effects)














8,440



853Net earnings from operations

$
4,501


$
5,874


$
8,766


$
5,904


$
7,709     1




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##### 



SELECTED
    CONSOLIDATED FINANCIAL DATA (continued)
  For the year ended December 31:2007


2006


2005


2004


2003(In thousands, except per share data)Earnings (loss) per share:Basic

$
.61


$
.78


$
1.15


$
(.34
)

$
.92Basic from
    operations (3)

$
.61


$
.78


$
1.15


$
.79


$
1.03Diluted

$
.61


$
.78


$
1.15



N/A


$
.91Diluted from
    operations (3)

$
.61


$
.78


$
1.15


$
.79


$
1.02Dividends declared per share

$
.60


$
.60


$
.58


$
.58


$
.57Return on average
    assets (4)


0.43
%


0.55
%


0.82
%


(0.24
)%


0.65
%Return on average assets from operations
    (4)


0.43



0.55



0.82



0.56



0.73Return on average
    equity (4)


4.98



6.46



9.73



(2.79
)


7.17Return on average equity from
    operations (4)


4.98



6.46



9.73



6.49



8.07Average equity to average
    assets (4)


8.67



8.58



8.43



8.64



9.01Dividend payout
    ratio (5)


98.36



76.92



50.43



N/A
(6)


61.96   (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,
    excludes capitalized mortgage servicing rights, which are
    reported in Other Assets. Prior-period financial statements were
    reclassified to conform to the current periods
    presentation.(3)
    
    Represents a pro-forma presentation
    based upon net earnings from operations divided by
    weighted-average basic and diluted shares outstanding. For 2007,
    diluted earnings per share from operations is based on 7,328,494
    diluted shares assumed to be outstanding.(4)
    
    Ratios are based upon the
    mathematical average of the balances at the end of each month.(5)
    
    Represents dividends per share
    divided by basic earnings per share.(6)
    
    Not meaningful.     2




---



##### 



DESCRIPTION OF
    BUSINESS
               http://www.camcofinancial.com, Form 10-K, Form 10-Q, Form 8-K
     3




---



##### 



STOCK
    INFORMATION
     CashdividendsHigh


Low


declaredYear ended December 31, 2007Quarter ending:December 31, 2007

$
13.50


$
11.05


$
0.150September 30, 2007


13.50



12.62



0.150June 30, 2007


12.80



12.10



0.150March 31, 2007


12.84



12.20



0.150Year 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



0.150      4




---



##### 



ISSUER PURCHASES
    OF EQUITY SECURITIES
     Total number ofshares purchased


Maximum numberas part of publicly


of shares that mayNumber of shares


Average price paid


announced plans


yet be repurchasedPeriod of Repurchase

repurchased


per share


or programs


under the programJanuary 1  31


0



N/A



0



300,936February 1  28


0



N/A



0



300,936March 1 
    31 (1)


43,510



12.36



43,510



362,902April 1  30


0



N/A



8,500



362,902May 1  31


38,061



12.46



46,561



324,841June 1  30


53,650



12.48



100,211



271,191July 1  31


6,550



12.55



106,761



264,641August 1  31


75,817



13.06



182,578



188,824September 1  30


45,800



13.30



228,878



143,024October 1  31


0



N/A



228,378



143,024November 1  30


46,500



12.05



274,878



96,524December 1  31


0



N/A



274,878



96,524Total


309,888



12.66



274,878



96,524        5




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##### 



PERFORMANCE
    GRAPH
     CAMCO FINANCIAL
    CORPORATION
  TOTAL RETURN
    PERFORMANCE
  
  Period endingIndex

12/31/02


12/31/03


12/31/04


12/31/05


12/31/06


12/31/07Camco Financial Corporation


100.00



126.26



117.49



113.27



104.72



95.11NASDAQ Composite


100.00



150.01



162.89



165.13



180.85



198.60SNL Bank and Thrift Index


100.00



135.57



151.82



154.20



180.17



137.40      6




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##### 



MANAGEMENTS
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATIONS
   GENERAL
        OVERVIEW
    2007


2006Balance


Mix


Balance


Mix(dollars in thousands)LoansResidential real estate and multifamily

$
476,020



58
%

$
517,501



63
%Nonresidential real estate and commercial


167,988



20



140,864



17Home equity lines of credit and consumer


128,874



16



124,287



15Construction


45,677



6



42,654



5DepositsChecking accounts

$
126,887



18
%

$
126,428



19
%Money market and savings


148,703



22



137,380



20Certificates


416,594



60



420,974



61Federal Home Loan Bank advances

$
199,064






$
245,288        7




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##### 



MANAGEMENTS
    DISCUSSION AND
    ANALYSIS OF FINANCIAL CONDITION AND
    RESULTS OF OPERATIONS (continued)
   ©
          FORWARD-LOOKING
    STATEMENTS
       8




---



##### 




    anticipated changes in industry conditions created by state and
    federal legislation and regulations;
    anticipated changes in general interest rates and the impact of
    future interest rate changes on our profitability, capital
    adequacy and the fair value of our financial assets and
    liabilities;
    retention of our existing customer base and our ability to
    attract new customers;
    the development of new products and services and their success
    in the marketplace;
    the adequacy of the allowance for loan losses; and,
    statements regarding our anticipated loan and deposit account
    growth, expense levels, liquidity and capital resources and
    projections of earnings.    
    competition in the industry and markets in which we operate;
    changes in general interest rates;
    rapid changes in technology affecting the financial services
    industry;
    changes in government regulation; and
    general economic and business conditions.    NON-GAAP FINANCIAL
    MEASURES
      CRITICAL
    ACCOUNTING POLICIES
       9




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##### 



MANAGEMENTS
    DISCUSSION AND
    ANALYSIS OF FINANCIAL CONDITION AND
    RESULTS OF OPERATIONS (continued)
     Allowance for Loan Losses.
      Mortgage Servicing Rights.
    Goodwill.
       10




---



##### 



Summary.
  DISCUSSION
    OF FINANCIAL CONDITION CHANGES FROM DECEMBER 31, 2006, TO
    DECEMBER 31, 2007
                 11




---



##### 



MANAGEMENTS
    DISCUSSION AND
    ANALYSIS OF FINANCIAL CONDITION AND
    RESULTS OF OPERATIONS (continued)
        December 31, 2007


December 31, 200690+ days








90+ days30-89 days


delinquent,





30-89 days


delinquent,delinquent


accruing


Nonaccrual


delinquent


accruing


Nonaccrual(In thousands)Construction/Development

$
11


$



$
5,568


$
14


$



$
92HELOC and second mortgage


1,152







1,026



1,398







8051-4 Family


6,652



1,520



8,310



7,363



728



9,563Multifamily










871







143



4,682Commercial


2,036







7,603



4,911







2,387Consumer and other


2,561







617



147







136Total

$
12,412


$
1,520


$
23,995


$
13,833


$
871


$
17,665              12




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##### 



COMPARISON
    OF RESULTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31,
    2007 AND DECEMBER 31, 2006
  General.
  Net Interest Income.
             13




---



##### 



MANAGEMENTS
    DISCUSSION AND
    ANALYSIS OF FINANCIAL CONDITION AND
    RESULTS OF OPERATIONS (continued)
    Provision for Losses on Loans.
  Other Income.
            General, Administrative and Other Expense.
       14




---



##### 



Federal Income Taxes.
  COMPARISON
    OF RESULTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31,
    2006 AND DECEMBER 31, 2005
  General.
  Net Interest Income.
       15




---



##### 



MANAGEMENTS
    DISCUSSION AND
    ANALYSIS OF FINANCIAL CONDITION AND
    RESULTS OF OPERATIONS (continued)
        Provision for Losses on Loans.
  Other Income.
  General, Administrative and Other Expense.
  Federal Income Taxes.
     16




---



##### 



AVERAGE BALANCE,
    YIELD, RATE AND VOLUME DATA
    Year ended December 31,2007








2006








2005Average


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)

$
816,637


$
57,448



7.03
%

$
825,915


$
54,764



6.63
%

$
835,017


$
50,165



6.01
%Securities (2)


103,962



4,585



4.41



112,584



4,640



4.12



110,613



4,093



3.70FHLB Stock


28,722



1,894



6.60



27,777



1,611



5.80



26,317



1,315



5.00Cash surrender value of life insurance


21,312



948



4.45



20,861



920



4.41



20,417



899



4.40Interest-bearing deposits  and other


7,341



442



6.02



14,211



754



5.31



12,808



606



4.73Total interest-earning assets


977,974



65,317



6.68



1,001,348



62,689



6.26



1,005,172



57,078



5.68Noninterest-earning
    assets (3)


67,337











60,290











63,561Total Average Assets

$
1,045,311










$
1,061,638










$
1,068,733Interest-bearing liabilities:Deposits

$
652,711



25,429



3.90



646,269



21,248



3.29



640,469



15,434



2.41FHLB advances and other


249,793



10,992



4.40



282,325



11,523



4.08



297,304



11,095



3.73Total interest-bearing liabilities


902,504



36,421



4.04



928,594



32,771



3.53



937,773



26,529



2.83Noninterest-bearing deposits


35,919











30,163











28,627Noninterest-bearing liabilities


16,418











11,991











11,731Total Average Liabilities


954,841











970,748











978,131Total Average Shareholders Equity


90,470











90,890











90,602Total Average Liabilities and Shareholders Equity

$
1,045,311










$
1,061,638










$
1,068,733Net interest income/ Interest rate spread





$
28,896



2.64
%





$
29,918



2.73
%





$
30,549



2.85
%Net interest
    margin (4)










2.95
%










2.99
%










3.04
%Average interest-earning assets to average interest-bearing
    liabilities










108.3
%










107.8
%










107.2
%   (1)
    
    Includes loans held for sale. Loan
    fees are immaterial.(2)
    
    Includes securities designated as
    available for sale(3)
    
    Includes nonaccrual loans, mortgage
    servicing rights and allowance for loan losses(4)
    
    Net interest income as a percent of
    average interest-earning assets     17




---



##### 



AVERAGE BALANCE,
    YIELD, RATE AND
    VOLUME DATA (continued)
   Rate/Volume
    Table
    Year ended December 312007


2006Increase/(decrease) due to


Increase/(decrease) due toVolume


Rate


Total


Volume


Rate


Total(In thousands)Interest income attributable to:Loans
    receivable (1)

$
(607
)

$
3,291


$
2,684


$
(307
)

$
4,906


$
4,599Securities


(649
)


594



(55
)


3



544



547Interest-bearing deposits and other


(357
)


356



(1
)


162



303



465Total interest income


(1,613
)


4,241



2,628



(142
)


5,753



5,611Interest expense attributable to:Deposits


214



3,967



4,181



141



5,673



5,814Borrowings


(1,650
)


1,119



(531
)


(498
)


926



428Total Interest expense


(1,436
)


5,086



3,650



(357
)


6,599



6,242Increase (decrease) in net interest income

$
(177
)

$
(845
)

$
(1,022
)

$
215


$
(846
)

$
(631
)   (1)
    
    Includes loans held for sale.  Yields
    Earned and Rates Paid
    At December 31,2007


2006


2005Weighted-average yield on:Loan
    portfolio (1)


7.05
%


6.97
%


6.36
%Investment
    portfolio (2)


5.30



4.62



4.53Total interest-earning assets


6.77



6.56



6.02Weighted-average rate paid on:Deposits


3.88



3.52



2.60FHLB advances


4.42



4.28



3.94Total interest-bearing liabilities


4.02



3.73



3.01Interest rate spread


2.75
%


2.83
%


3.01
%   (1)
    
    Includes loans held for sale and
    excludes the allowance for loan losses.(2)
    
    Includes earnings on FHLB stock,
    investment securities and cash surrender value of life
    insurance. Taxable equivalent yield used.     18




---



##### 



QUANTITATIVE AND
    QUALITATIVE DISCLOSURES ABOUT MARKET RISK
                 Change in

Percentage Change inInterest Rates

Net Interest Income(basis points)

12 Months Forward+200



-9.55%+100



-4.53%-100



0.11%-200



0.20%       Change inInterest Rates

Percentage(basis points)

Change in EVE+200



-4.50
%+100



-1.43
%-100



5.18
%-200



12.64
%        19




---



##### 



QUANTITATIVE AND
    QUALITATIVE DISCLOSURES 
    ABOUT MARKET RISK (continued)
       20




---



##### 



LIQUIDITY AND
    CAPITAL RESOURCES
                      21




---



##### 



LIQUIDITY AND
    CAPITAL RESOURCES (continued)
      Payments due by periodLess








Morethan


1-3


3-5


than 51 year


years


years


years


Total(In thousands)Contractual obligations:Operating lease obligations

$
298


$
485


$
302


$
444


$
1,529Advances from the Federal Home Loan Bank


71,933



77,197



13,637



36,297



199,064Repurchase agreements


16,597



320











16,917Certificates of deposit


303,081



107,742



5,039



732



416,594Subordinated
    debentures (1)














5,000



5,000Ohio Equity Funds for Affordable Housing


789



2,777



700



540



4,806Amount of commitments per periodCommitments to originate loans:Overdraft lines of credit


857















857Home equity


80,008















80,008One- to four- family and multi-family loans includes Loans in
    process


13,991















13,991Commercial includes Loans in process &Lines of credit


19,882















19,882Letters of credit


714















714Total contractual obligations

$
508,150


$
188,521


$
19,678


$
43,013


$
759,362   (1)
    
    The subordinated debentures are
    redeemable, at Camcos option, commencing
    September 15, 2008. The debentures mature on
    September 15, 2037.           22




---



##### 



MANAGEMENTS
    REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
   Rule 13a-15(f) Rule 15d-15(f)
           23




---



##### 



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
                
        24




---



##### 



CAMCO FINANCIAL
    CORPORATION
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
  December 31,2007


2006(In thousands, except share data)ASSETSCash and due from banks

$
17,572


$
13,869Interest-bearing deposits in other financial institutions


5,432



12,673Cash and cash equivalents


23,004



26,542Securities available-for-sale, at market


88,919



107,506Securities held-to-maturity, at cost, approximate market value
    of $2,793 and $3,470 as of December 31, 2007 and 2006,
    respectively


2,769



3,449Loans held for sale  at lower of cost or market


3,169



3,664Loans receivable  net


812,102



818,154Office premises and equipment  net


12,856



13,200Real estate acquired through foreclosure


5,034



3,956Federal Home Loan Bank stock  at cost


28,722



28,722Accrued interest receivable


6,034



6,502Mortgage servicing rights  at lower of cost or market


6,356



6,424Prepaid expenses and other assets


5,231



1,537Cash surrender value of life insurance


21,707



20,921Goodwill


6,683



6,683Prepaid and refundable federal income taxes


675



956Total assets

$
1,023,261


$
1,048,216LIABILITIES
    AND STOCKHOLDERS EQUITYDeposits

$
692,184


$
684,782Advances from the Federal Home Loan Bank and other borrowings


220,981



257,139Advances by borrowers for taxes and insurance


3,627



3,484Accounts payable and accrued liabilities


11,331



6,350Dividends payable


1,081



1,120Deferred federal income taxes


5,423



4,249Total liabilities


934,627



957,124Commitments






Stockholders equityPreferred stock  $1 par value; authorized
    100,000 shares; no shares outstanding






Common stock  $1 par value; authorized
    14,900,000 shares; 8,834,508 and 8,832,082 shares
    issued at December 31, 2007 and 2006, respectively


8,835



8,832Additional paid-in capital


59,842



59,722Retained earnings


44,083



43,954Accumulated other comprehensive (loss) net of related tax effects


(12
)


(1,225
)Treasury stock  1,678,913 and 1,369,025 shares
    at December 31, 2007 and 2006, respectively, at cost


(24,114
)


(20,191
)Total stockholders equity


88,634



91,092Total liabilities and stockholders equity

$
1,023,261


$
1,048,216        25




---



##### 



CAMCO FINANCIAL
    CORPORATION
    CONSOLIDATED STATEMENTS OF OPERATIONS
  For the years ended December 31,2007, 2006 and 20052007


2006


2005(In thousands, except per share data)Interest and dividend incomeLoans

$
57,448


$
54,764


$
50,165Investment securities


4,585



4,640



4,093Other interest-bearing accounts


3,284



3,285



2,820Total interest income


65,317



62,689



57,078Interest expenseDeposits


25,429



21,248



15,434Borrowings


10,992



11,523



11,095Total interest expense


36,421



32,771



26,529Net interest income


28,896



29,918



30,549Provision for losses on loans


1,495



1,440



1,480Net interest income after provision for losses on loans


27,401



28,478



29,069Other incomeLate charges, rent and other


1,418



1,196



1,586Title fees


652



673



752Loan servicing fees


1,375



1,412



1,480Gain on sale of loans


353



295



683Mortgage servicing rights  net


(68
)


(549
)


20Service charges and other fees on deposits


2,441



2,056



1,973Gain on sale of investment and mortgage-backed securities


1



0



113Loss on sale of real estate acquired through foreclosure


(297
)


(72
)


(23
)Gain (loss) on sale of premises and equipment, net


(25
)


22



8Total other income


5,850



5,033



6,592General, administrative and other expenseEmployee compensation and benefits


13,012



12,410



11,640Occupancy and equipment


3,464



3,182



3,051Data processing


1,186



1,344



1,368Advertising


1,299



1,158



1,218Franchise taxes


1,103



1,027



267Other operating


6,921



5,789



5,210Total general, administrative and other expense


26,985



24,910



22,754Earnings before federal income taxes


6,266



8,601



12,907Federal income taxesCurrent


1,216



2,043



3,965Deferred


549



684



176Total federal income taxes


1,765



2,727



4,141NET EARNINGS

$
4,501


$
5,874


$
8,766EARNINGS PER SHAREBasic

$
0.61


$
0.78


$
1.15Diluted

$
0.61


$
0.78


$
1.15        26




---



##### 



CAMCO FINANCIAL
    CORPORATION
    CONSOLIDATED STATEMENTS OF
    COMPREHENSIVE INCOME
  For the years ended December 31,2007


2006


2005(In thousands)Net earnings

$
4,501


$
5,874


$
8,766Other comprehensive income (loss), net of tax effects:Unrealized holding gains (losses) on securities during the
    period, net of taxes (benefits) of $625, $226 and $(683) in
    2007, 2006 and 2005, respectively


1,213



438



(1,325
)Reclassification adjustment for realized gains included in
    operations, net of taxes of $1, $0 and $38 for the years ended
    December 31, 2007, 2006 and 2005, respectively


(1
)






(75
)Comprehensive income

$
5,713


$
6,312


$
7,366        27




---



##### 



CAMCO FINANCIAL
    CORPORATION
    CONSOLIDATED STATEMENTS OF
    STOCKHOLDERS EQUITY
  For the years ended December 31, 2007, 2006 and 2005AccumulatedAdditional





other





TotalShares



Common


paid-in


Retained


comprehensive


Treasury


stockholdersoutstanding



stock


capital


earnings


income (loss)


stock


equity(Dollars in thousands, except per share data)Balance at January 1, 2005



7,663,153



$
8,760


$
58,935


$
38,234


$
(263
)

$
(16,345
)

$
89,321Stock options exercised



70,162




70



632















702Cash dividends declared  $0.58 per share
















(4,431
)










(4,431
)Net earnings for the year ended December 31, 2005
















8,766











8,766Purchase of treasury shares



(154,602
)



















(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



7,578,713




8,830



59,567



42,569



(1,663
)


(18,540
)


90,763Stock options exercised



2,243




2



18















20Cash dividends declared  $0.60 per share
















(4,489
)










(4,489
)FAS 123 R  Stock Option Expense












137















137Net earnings for the year ended December 31, 2006
















5,874











5,874Purchase of treasury shares



(117,900
)



















(1,651
)


(1,651
)Unrealized gains on securities designated as available for sale,
    net of related tax benefits




















438







438Balance at December 31, 2006



7,463,056




8,832



59,722



43,954



(1,225
)


(20,191
)


91,092Stock options exercised



2,427




3



28















31Cash dividends declared  $0.60 per share
















(4,372
)










(4,372
)FAS 123R  Stock Option Expense












92















92Net earnings for the year ended December 31, 2007
















4,501











4,501Purchase of treasury shares



(309,888
)



















(3,923
)


(3,923
)Unrealized gains of securities designated as available for sale,
    net of related tax benefits




















1,213







1,213Balance at December 31, 2007



7,155,595



$
8,835


$
59,842


$
44,083


$
(12
)

$
(24,114
)

$
88,634        28




---



##### 



CAMCO FINANCIAL
    CORPORATION
    CONSOLIDATED STATEMENTS OF CASH FLOWS
  For the years ended December 31,2007


2006


2005(In thousands)Cash
    flows from operating activities:Net earnings for the year

$
4,501


$
5,874


$
8,766Adjustments to reconcile net earnings to net cash provided by
    operating activities:Amortization of premiums and discounts on investment and
    mortgage-backed securities  net


115



188



466Amortization of mortgage servicing rights  net


747



1,252



972Depreciation and amortization


1,434



1,247



1,198Amortization of purchase accounting adjustments  net






89



89Stock option expense (FAS 123R)


92



137



Provision for losses on loans


1,495



1,440



1,480Provision for losses on real estate acquired through foreclosure






99



95Amortization of deferred loan origination fees


84



176



96Loss on sale of real estate acquired through foreclosure


297



72



23Gain on sale of investment securities


(1
)






(113
)(Gain) loss on sale of branch deposits, premises and equipment,
    net


25



(22
)


(8
)Federal Home Loan Bank stock dividends






(1,610
)


(1,315
)Net increase in cash surrender value of life insurance


(786
)


(769
)


(751
)Gain on sale of loans


(353
)


(295
)


(683
)Loans originated for sale in the secondary market


(49,458
)


(52,641
)


(68,844
)Proceeds from sale of mortgage loans in the secondary market


50,306



51,219



70,417Tax benefits related to exercise of stock options










111Increase (decrease) in cash, net of acquisitions, due to changes
    in:Accrued interest receivable


468



(1,204
)


(794
)Prepaid expenses and other assets


(4,092
)


(181
)


5,101Accounts payable and other liabilities


(250
)


435



(7
)Federal income taxes


358



684



176Net cash provided by operating activities


4,982



6,190



16,475Cash
    flows provided by (used in) investing activities:Proceeds from maturities of investment securities


52,720



6,260



10,375Proceeds from sale of investment securities designated as
    available for sale


3







302Purchase of securities designated as available for sale


(43,729
)


(15,881
)


(39,443
)Principal repayments on mortgage-backed securities


11,997



12,832



21,030Loan disbursements


(245,835
)


(230,127
)


(331,469
)Purchases of loans


(3,021
)


(3,698
)


(11,141
)Principal repayments on loans


249,922



250,409



323,314Purchase of premises and equipment


(1,131
)


(3,014
)


(1,121
)Proceeds from sale of office premises and equipment


16



158



9Proceeds from sale of real estate acquired through foreclosure


2,454



1,119



3,362Additions to real estate acquired through foreclosure






(21
)


(56
)Proceeds from redemption of life insurance






641



Net cash provided by (used in) investing activities


23,396



18,678



(24,838
)Net cash provided by (used in) operating and investing
    activities (balance carried forward)


28,378



24,868



(8,363
)     29




---



##### 



CAMCO FINANCIAL
    CORPORATION
    CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
  For the years ended December 31,2007


2006


2005(In thousands)Net cash provided by (used in) operating and investing
    activities (balance brought forward)

$
28,378


$
24,868


$
(8,363
)Cash
    flows provided by financing activities:Net increase (decrease) in deposits


7,402



24,540



(7,536
)Proceeds from Federal Home Loan Bank advances


79,000



55,500



56,500Proceeds from subordinated debentures


5,000







Repayment of Federal Home Loan Bank advances


(125,224
)


(104,569
)


(57,453
)Net change in repurchase agreements


10,066



(1,015
)


12,866Dividends paid on common stock


(4,411
)


(4,471
)


(4,438
)Proceeds from exercise of stock options


31



20



591Purchase of treasury stock


(3,923
)


(1,651
)


(2,195
)Decrease in advances by borrowers for taxes and insurance


143



235



219Net cash used in financing activities


(31,916
)


(31,411
)


(1,446
)Net decrease in cash and cash equivalents


(3,538
)


(6,543
)


(9,809
)Cash and cash equivalents at beginning of year


26,542



33,085



42,894Cash and cash equivalents at end of year

$
23,004


$
26,542


$
33,085Supplemental disclosure of cash flow information:Cash paid during the year for:Interest on deposits and borrowings

$
36,687


$
32,473


$
26,511Income taxes

$
1,125


$
2,499


$
(947
)Supplemental disclosure of noncash investing activities:Transfers from loans to real estate acquired through foreclosure

$
5,490


$
4,092


$
3,725Issuance of mortgage loans upon sale of real estate acquired
    through foreclosure

$
2,083


$
1,448


$
1,137Unrealized gains (losses) on securities designated as available
    for sale, net of related tax effects

$
1,213


$
438


$
(1,325
)Recognition of mortgage servicing rights in accordance with
    SFAS No. 140

$
680


$
1,252


$
992Supplemental disclosure of noncash financing activities:Dividends declared but unpaid

$
1,081


$
1,120


$
1,102        30




---



##### 



CAMCO FINANCIAL
    CORPORATION
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTSDecember 31, 2007, 2006 and
    2005
   NOTE A -
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
        1. Principles
    of Consolidation
     2. Investment
    Securities and Mortgage-Backed Securities
     3. Loans
    Receivable
            31




---



##### 



CAMCO FINANCIAL
    CORPORATION
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)December 31, 2007, 2006 and
    2005
  NOTE A -
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
  4.
    Loan
    Origination and Commitment Fees  loan-by-loan
     5. Allowance
    for Loan Losses
          2007


2006At December 31:Impaired loans with related allowance

$
12,580


$
2,838Impaired loans with no related allowance


1,643



4,678Total impaired loans

$
14,223


$
7,516Allowance on impaired loans

$
1,876


$
753   2007


2006


2005For the year ended December 31:Average balance of impaired loans

$
11,467


$
4,213


$
2,770Cash basis interest income recognized on impaired loans

$
674


$
192


$
189         32




---



##### 



6. Real
    Estate Acquired Through Foreclosure
     7. Office
    Premises and Equipment
     8. Mortgage
    Servicing Rights
             9. Goodwill
       10. Federal
    Income Taxes
       33




---



##### 



CAMCO FINANCIAL
    CORPORATION
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)December 31, 2007, 2006 and
    2005
  NOTE A -
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
   
 
 10. Federal
    Income Taxes (continued)
       11. Earnings
    Per Share
    For the years ended2007


2006


2005(In thousands, except per share information)BASIC:Net Earnings

$
4,501


$
5,874


$
8,766Weighted average common shares outstanding


7,327



7,506



7,645Earnings per share - Basic

$
0.61


$
0.78


$
1.15DILUTED:Net Earnings

$
4,501


$
5,874


$
8,766Weighted average common shares outstanding


7,327



7,506



7,645Dilutive effect of stock options


1



2



4Total common shares and dilutive potential common shares


7,328



7,508



7,649Earnings per share - Diluted

$
0.61


$
0.78


$
1.15      12. Stock
    Option Plans
       34




---



##### 



2005(In thousands,except per share data)Net earnings As reported

$
8,766Add: Stock-based compensation, expense
    included in reported income, net of tax


Deduct: Total Stock-based compensation
    expense determined under fair value based
    method for awards, net of tax


(121
)Pro-forma

$
8,645Earnings per shareBasic As reported

$
1.15Stock-based compensation, net of tax


(.02
)Pro-forma

$
1.13Diluted As reported


1.15Stock-based compensation, net of tax


(.02
)Pro-forma

$
1.13       2007


2006


2005Weighted





Weighted





Weightedaverage





average





averageexercise





exercise





exerciseShares


price


Shares


price


Shares


priceOutstanding at beginning of year


304,874


$
15.20



224,636


$
15.71



218,324


$
12.91Granted


26,920



12.34



87,013



14.08



87,240



16.51Exercised


(2,427
)


12.50



(2,243
)


8.92



(70,162
)


8.43Forfeited


(11,129
)


14.67



(4,532
)


15.23



(10,766
)


12.85Outstanding at end of year


318,238


$
15.10



304,874


$
15.20



224,636


$
15.71Options exercisable at year-end


254,717


$
15.32



222,333


$
15.37



138,305


$
15.22Weighted-average fair value of options granted during the year





$
1.22






$
2.09






$
2.89      35




---



##### 



CAMCO FINANCIAL
    CORPORATION
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)December 31, 2007, 2006 and
    2005
  NOTE A -
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
   
 
 12.
    Stock
    Option Plans (continued)    Options outstanding


Options exercisableWeighted-average


Weighted-





Weighted-remaining


average





averageRange of

Number


contractual


exercise


Number


exerciseexercise prices

outstanding


life (years)


price


exercisable


price$8.92-$9.75


2,884



2.5


$
9.64



2,884


$
9.64$11.36-$14.16


116,717



8.0



13.52



67,615



13.54$14.55-$17.17


198,637



5.1



16.10



184,218



16.06318,238



6.1


$
15.10



254,717


$
15.32     NumberUnvested options:Beginning of period


82,541Granted


26,920Forfeited


(5,831
)Vested during the period


(40,109
)Unvested options at December 31


63,521        13. Fair
    Value of Financial Instruments
    and/or
  Cash and Cash Equivalents:
  Investment Securities and Mortgage-backed
    Securities:
  Loans Held for Sale:
     36




---



##### 



Loans Receivable:
  Federal Home Loan Bank stock:
  Cash Surrender Value of Life Insurance:
  Mortgage Servicing Rights:
  Deposits:
  Advances from the Federal Home Loan Bank:
  Repurchase Agreements and Subordinated
    Debentures:
  Accrued Interest and Advances by Borrowers for Taxes and
    Insurance:
  Commitments to Extend Credit:
   December 31,2007


2006Carrying


Fair


Carrying


Fairvalue


value


value


value(In thousands)Financial assetsCash and cash equivalents

$
23,004


$
23,004


$
26,542


$
26,542Investment securities available for sale


88,919



88,919



107,506



107,506Investment securities held to maturity


2,769



2,793



3,449



3,470Loans held for sale


3,169



3,194



3,664



3,691Loans receivable


812,102



814,210



818,154



826,389Federal Home Loan Bank stock


28,722



28,722



28,722



28,722Cash surrender value of life insurance


21,707



21,707



20,921



20,921Accrued interest receivable


6,034



6,034



6,502



6,502Mortgage servicing rights


6,356



6,642



6,424



6,519Financial liabilitiesDeposits

$
692,184


$
694,484


$
684,782


$
686,317Advances from the Federal Home Loan Bank


199,064



202,483



245,288



244,403Repurchase agreements


16,917



16,917



11,851



11,857Subordinated debentures


5,000



4,830







Advances by borrowers for taxes and insurance


3,627



3,627



3,484



3,484Accrued interest payable


1,215



1,215



1,480



1,480       37




---



##### 



CAMCO FINANCIAL
    CORPORATION
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)December 31, 2007, 2006 and
    2005
  NOTE A -
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
  14. Cash
    and Cash Equivalents
     15. Advertising
     16. Effects
    of Recent Accounting Pronouncements
      06-4, Accounting for Deferred Compensation and Postretirement
    Benefit Aspects of Endorsement Split-Dollar Life Insurance
    Arrangements, 06-4
      38




---



##### 



NOTE B -
    INVESTMENT SECURITIES
    2007Gross


Gross


EstimatedAmortized


unrealized


unrealized


faircost


gains


losses


value(In thousands)Available for sale:U.S. Government sponsored enterprises

$
37,519


$
267


$
4


$
37,782Municipal bonds


210



2







212Corporate equity securities


157



11



4



164Mortgage-backed securities


51,051



167



457



50,761Total investment securities available for sale

$
88,937


$
447


$
465


$
88,919Held to maturity:Municipal bonds

$
567


$
24


$



$
591Mortgage-backed securities


2,202



13



13



2,202Total investment securities held to maturity

$
2,769


$
37


$
13


$
2,793   2006Gross


Gross


EstimatedAmortized


unrealized


unrealized


faircost


gains


losses


value(In thousands)Available for sale:U.S. Government sponsored enterprises

$
55,962


$
2


$
386


$
55,578Municipal bonds


291











291Corporate equity securities


159



25







184Mortgage-backed securities


52,950



24



1,521



51,453Total investment securities available for sale

$
109,362


$
51


$
1,907


$
107,506Held to maturity:Municipal bonds

$
710


$
26


$



$
736Mortgage-backed securities


2,739



12



17



2,734Total investment securities held to maturity

$
3,449


$
38


$
17


$
3,470         39




---



##### 



CAMCO FINANCIAL
    CORPORATION
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)December 31, 2007, 2006 and
    2005
  NOTE B -
    INVESTMENT SECURITIES (continued)
  Available for sale


Held to maturityEstimated





EstimatedAmortized


fair


Amortized


faircost


value


cost


value(In thousands)Due in one year or less

$
23,625


$
23,652


$
225


$
227Due after one year through five years


14,104



14,342



252



261Due after five years through ten years














Due after ten years










90



103Total U.S. Government sponsored enterprises

$
37,729


$
37,994


$
567


$
591Due in one year or less

$
4,585


$
4,558


$



$
Due after one year through five years


9,547



9,485







Due after five years through ten years


20,410



20,319



174



174Due after ten years


16,509



16,399



2,028



2,028Total mortgage-backed securities

$
51,051


$
50,761


$
2,202


$
2,202Corporate equity securities

$
157


$
164


$



$
Total

$
88,937


$
88,919


$
2,769


$
2,793       2007Less than 12 months


More than 12 monthsFair


Unrealized


Fair


UnrealizedDescription of securities:

value


losses


value


losses(In thousands)Available for sale:U.S. Government sponsored enterprises

$
3,493


$
2


$
2,997


$
2Corporate equity securities


164



4







Mortgage-backed securities


36







36,202



457Held to maturity:Mortgage-backed securities


348



2



674



11Total temporarily impaired securities

$
4,041


$
8


$
39,873


$
470         40




---



##### 



2006Less than 12 months


More than 12 monthsFair


Unrealized


Fair


UnrealizedDescription of securities:

value


losses


value


losses(In thousands)Available for sale:U.S. Government sponsored enterprises

$
9,957


$
15


$
43,623


$
371Mortgage-backed securities


42







43,524



1,521Held to maturity:Mortgage-backed securities


293







6,103



17Municipal bonds


141







80



Total temporarily impaired securities

$
10,433


$
15


$
93,330


$
1,909        NOTE C -
    LOANS RECEIVABLE
  2007


2006(In thousands)Conventional real estate loans:Existing residential properties

$
435,431


$
474,109Multi-family


40,589



43,392Nonresidential real estate


126,437



105,577Construction


45,677



42,654Commercial


41,551



35,287Home equity lines of credit


121,619



116,436Consumer, education and other loans


7,255



7,851Total


818,559



825,306Increase (decrease) due to:Unamortized yield adjustments


166



(8
)Allowance for loan losses


(6,623
)


(7,144
)Loans receivable  net

$
812,102


$
818,154     1-4
      41




---



##### 



CAMCO FINANCIAL
    CORPORATION
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)December 31, 2007, 2006 and
    2005
  NOTE D -
    ALLOWANCE FOR LOAN LOSSES
    2007


2006


2005(In thousands)Balance at beginning of year

$
7,144


$
6,959


$
6,476Provision for losses on loans


1,495



1,440



1,480Charge-offs of loans


(2,097
)


(1,439
)


(1,280
)Recoveries


81



184



283Balance at end of year

$
6,623


$
7,144


$
6,959      NOTE E -
    OFFICE PREMISES AND EQUIPMENT
    2007


2006(In thousands)Land

$
2,120


$
2,120Buildings and improvements


13,205



13,140Furniture, fixtures and equipment


9,530



9,43424,855



24,694Less accumulated depreciation and amortization


11,999



11,494$
12,856


$
13,200    NOTE F -
    DEPOSITS
    2007


2006Amount


Rate


Amount


Rate(Dollars in thousands)Noninterest-bearing checking accounts

$
35,755




%

$
31,706




%NOW accounts


91,132



1.57



94,722



1.36Money market demand accounts


111,740



3.57



89,383



3.59Passbook and statement savings accounts


36,963



0.27



47,997



0.26Certificates of deposit


416,594



4.80



420,974



4.62Total deposits

$
692,184



3.68
%

$
684,782



3.52
%        42




---



##### 



Year ending December 31:(In thousands)2008

$
303,0812009


99,5202010


8,2222011


2,7652012


2,274Thereafter


732Total certificate of deposit accounts

$
416,594    NOTE G -
    ADVANCES
    FROM THE FEDERAL HOME LOAN BANK AND OTHER BORROWINGS    Weighted-Weighted-


average2007

average rate


maturity (years)


Balance(In thousands)Overnight repurchase-based


4.10
%





$
18,700Fixed-rate, interest only


4.52



1.18



104,000Fixed-rate, amortizing


5.77



5.89



5,364Fixed-rate, interest only, convertible


3.85



4.86



46,000Fixed-rate, interest only, putable


4.39



5.43



25,000Total


4.34
%


2.58


$
199,064   Weighted-Weighted-


average2006

average rate


maturity (years)


Balance(In thousands)Overnight repurchase-based


5.18
%





$
42,500Fixed-rate, interest only


4.14



1.51



123,000Fixed-rate, amortizing


5.84



5.28



8,788Fixed-rate, interest only, convertible


3.81



6.09



71,000Total


4.28
%


2.71


$
245,288        43




---



##### 



CAMCO FINANCIAL
    CORPORATION
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)December 31, 2007, 2006 and
    2005
  NOTE G -
    ADVANCES
    FROM THE FEDERAL HOME LOAN BANK AND OTHER
    BORROWINGS (continued)    Average


Highest monthWeighted-


balance


end balanceaverage rate


outstanding


outstanding(In thousands)2007


5.18
%

$
36,381


$
55,3002006


4.96



38,566



63,000     Maturing yearending December 31,

Interest rate range(Dollars in thousands)2008


2.90%-7.00%


$
71,9332009


2.78%-7.00%



56,8402010


3.01%-7.00%



20,3572011


3.25%-7.00%



3,3302012


3.25%-7.00%



10,307Thereafter


2.66%-7.00%



36,297$
199,064     Call date

TermsPrior to 9/15/2008

Callable at 103.525% of par9/15/2008

Callable at 103.140% of par9/15/2009

Callable at 102.355% of par9/15/2010

Callable at 101.570% of par9/15/2011

Callable at 100.785% of par9/15/2012

Callable until Due Date at par        44




---



##### 



NOTE H -
    FEDERAL INCOME TAXES
    2007


2006


2005(In thousands)Federal income taxes computed at the expected statutory rate

$
2,130


$
2,924


$
4,389Increase (decrease) in taxes resulting from:Nontaxable dividend and interest income


(13
)


(17
)


(25
)Tax credits (low income housing)


(110
)






Increase in cash surrender value of life insurance 
    net


(267
)


(304
)


(255
)Other


25



124



32Federal income tax provision per consolidated financial
    statements

$
1,765


$
2,727


$
4,141     Taxes (payable) refundable on
    temporary differences at statutory rate:

2007


2006(In thousands)Deferred tax liabilities:FHLB stock dividends

$
(4,621
)

$
(4,621
)Mortgage servicing rights


(2,161
)


(2,184
)Book versus tax depreciation


(1,087
)


(1,031
)Original issue discount


(826
)


(678
)Purchase price adjustments


(162
)


(173
)Other liabilities, net






(9
)Deferred loan fees


(57
)


Total deferred tax liabilities


(8,914
)


(8,696
)Deferred tax assets:General loan loss allowance


2,252



2,429Deferred income


21



358Deferred compensation


1,075



1,007Deferred loan fees






5Other assets


137



17Unrealized losses on securities designated as available for sale


6



631Total deferred tax assets


3,491



4,447Net deferred tax liability

$
(5,423
)

$
(4,249
)      NOTE I -
    COMMITMENTS
       45




---



##### 



CAMCO FINANCIAL
    CORPORATION
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)December 31, 2007, 2006 and
    2005
  NOTE I -
    COMMITMENTS(continued)
        case-by-case
    Year ending December 31,(In thousands)2008

$
2982009


2542010


2312011


1592012


1432013 and thereafter


444$
1,529      NOTE J -
    REGULATORY CAPITAL
         46




---



##### 



Camco:
  At December 31, 2007To 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)

$
92,958



12.39%



3
    $60,037



8.0%



3
    $75,047



10.0%Tier I capital(to risk-weighted assets)

$
86,335



11.50%



3
    $30,019



4.0%



3
    $45,028



6.0%Tier I leverage

$
86,335



8.36%



3
    $41,286



4.0%



3
    $51,607



5.0%   Advantage:
  At December 31, 2007To 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)

$
86,414



11.54%



3
    $59,931



8.0%



3
    $74,914



10.0%Tier I capital(to risk-weighted assets)

$
79,791



10.65%



3
    $29,966



4.0%



3
    $44,948



6.0%Tier I leverage

$
79,791



7.80%



3
    $40,943



4.0%



3
    $51,179



5.0%      47




---



##### 



CAMCO FINANCIAL
    CORPORATION
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)December 31, 2007, 2006 and
    2005
  NOTE J - REGULATORY
    CAPITAL (continued)
  Camco:
  At December 31, 2006To be well-For capital

capitalized under 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%



3$73,919



310.0%Tier I capital(to risk-weighted assets)

$
84,991



11.50%



3$29,568



34.0%



3$44,351



3
    6.0%Tier I leverage

$
84,991



8.22%



3$41,351



34.0%



3$51,689



3
    5.0%   Advantage:
  At December 31, 2006To be well-For capital

capitalized under 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%      NOTE K -
    BENEFIT PLANS
         48




---



##### 



NOTE L -
    CAMCO
    FINANCIAL CORPORATION CONDENSED FINANCIAL INFORMATION    CAMCO
    FINANCIAL CORPORATION STATEMENTS OF FINANCIAL CONDITION
  December 31,2007


2006(In thousands)ASSETSCash in Advantage

$
4,403


$
123Interest-bearing deposits in other financial institutions


100



5,172Investment securities designated as available for sale


164



184Investment in Advantage


87,094



83,799Investment in Camco Title


852



1,056Office premises and equipment  net


1,207



1,248Cash surrender value of life insurance


1,172



1,136Prepaid expenses and other assets


319



281Total assets

$
95,311


$
92,999LIABILITIES
    AND STOCKHOLDERS EQUITYAccounts payable and other accrued liabilities

$
335


$
381Borrowings


5,000



Dividends payable


1,080



1,120Accrued federal income taxes


261



406Deferred federal income taxes


1



Total liabilities


6,677



1,907Stockholders equityCommon stock


8,835



8,832Additional paid-in capital


59,842



59,722Retained earnings


44,083



43,954Unrealized gains (losses) on securities designated as available
    for sale, net of related tax effects


(12
)


(1,225
)Treasury stock, at cost


(24,114
)


(20,191
)Total stockholders equity


88,634



91,092Total liabilities and stockholders equity

$
95,311


$
92,999      49




---



##### 



CAMCO FINANCIAL
    CORPORATION
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)December 31, 2007, 2006 and
    2005
  NOTE L -
    CAMCO
    FINANCIAL CORPORATION CONDENSED FINANCIAL INFORMATION (continued)  CAMCO
    FINANCIAL CORPORATION STATEMENTS OF OPERATIONS
  Year ended December 31,2007


2006


2005(In thousands)IncomeDividends from Advantage

$
3,000


$
4,800


$
7,000Dividends from Camco Title


350







250Interest and other income


157



366



239Gain on sale of investments


1







113Gain on sale of fixed assets






7



Undistributed earnings of Advantage


2,069



1,568



2,145Undistributed earnings of Camco Title


(204
)


148



(61
)Total income


5,373



6,889



9,686Interest Expense


139







General, administrative and other expense


1,107



1,357



1,233Earnings before federal income tax credits


4,127



5,532



8,453Federal income tax credits


(374
)


(342
)


(313
)Net earnings

$
4,501


$
5,874


$
8,766   CAMCO
    FINANCIAL CORPORATION STATEMENTS OF CASH FLOWS
  Year ended December 31,2007


2006


2005(In thousands)Cash flows from operating activities:Net earnings for the year

$
4,501


$
5,874


$
8,766Adjustments to reconcile net earnings to net cash flows provided
    by operating activities:Undistributed earnings of Advantage


(2,069
)


(1,568
)


(2,145
)Undistributed earnings of Camco Title


204



(148
)


61Gain on sale of office premises and equipment






(7
)


Gain on sale of investments


(1
)






(113
)Depreciation and amortization


41



49



53Increase (decrease) in cash due to changes in:Prepaid expenses and other assets


54



17



5Accounts payable and other liabilities


(47
)


(32
)


9Accrued federal income taxes


(145
)


(35
)


(70
)Deferred federal income taxes


6



54



92Tax benefits related to exercise of stock options










111Net cash provided by operating activities [balance carried
    forward]


2,544



4,204



6,769     50




---



##### 



Year ended December 31,2007


2006


2005(In thousands)Net cash provided by operating activities [balance brought
    forward]


2,544



4,204



6,769Cash flows from investing activities:Purchase of investment securities










(100
)Proceeds from redemption of available for sale securities


3







302Net increase in cash surrender value of life insurance


(36
)


(37
)


(38
)Purchase of office premises and equipment






(29
)


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


5,072



1,838



(1,015
)Net cash provided by (used in) investing activities


5,039



1,922



(851
)Cash flows from financing activities:Proceeds from exercise of stock options


31



20



591Proceeds from subordinated debentures


5,000







Dividends paid


(4,411
)


(4,471
)


(4,438
)Purchase of treasury shares


(3,923
)


(1,651
)


(2,195
)Net cash used in financing activities


(3,303
)


(6,102
)


(6,042
)Net increase (decrease) in cash and cash equivalents


4,280



24



(124
)Cash and cash equivalents at beginning of year


123



99



223Cash and cash equivalents at end of year

$
4,403


$
123


$
99        51




---



##### 



CAMCO FINANCIAL
    CORPORATION
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)December 31, 2007, 2006 and
    2005
  NOTE N -
    QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
    Three months ended2007:

December 31,


September 30,


June 30,


March 31,(In thousands, except per share date)Total interest income

$
16,159


$
16,434


$
16,535


$
16,189Total interest expense


9,089



9,445



9,085



8,802Net interest income


7,070



6,989



7,450



7,387Provision for losses on loans


980



200



120



195Other income


1,724



1,495



1,063



1,568General, administrative and other expenses


6,763



7,223



6,436



6,563Earnings before income taxes


1,051



1,061



1,957



2,197Federal income taxes


244



218



610



693Net earnings

$
807


$
843


$
1,347


$
1,504Earnings per share:Basic

$
.11


$
.12


$
.18


$
.20Diluted

$
.11


$
.12


$
.18


$
.20   Three months ended2006:

December 31,


September 30,


June 30,


March 31,(In thousands, except per share date)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 expenses


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      52




---



##### 



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