CAMCO FINANCIAL CORP

CIK:0000016614|SEC Filings

Earnings Per Share

9 Months Ended

Sep. 30, 2013

5.	Earnings Per Share

Basic earnings per common share is computed based upon the weighted-average number of common shares outstanding during the year. Diluted earnings per common share is computed including the dilutive effect of additional potential common shares issuable under outstanding stock options and warrants. Diluted earnings per share is not computed for periods in which an operating loss is sustained. The computations were as follows for the periods ended September 30:


	For the nine months ended September 30,				For the three months ended September 30,
(In thousands except earnings per share)	2013		2012		2013		2012
BASIC:
Net Earnings	$	7,380	$	1,379	$	727	$	484
Weighted average common shares outstanding		13,506		7,385		13,584		7,467

Basic earnings per share	$	0.55	$	0.19	$	0.05	$	0.07

DILUTED:
Net Earnings	$	7,380	$	1,379	$	727	$	484
Weighted average common shares outstanding		13,506		7,385		13,584		7,467
Dilutive effect of warrants		1,059		0		1,251		0
Dilutive effect of stock options		153		3		193		16

Total common shares and dilutive potential common shares		14,718		7,388		15,028		7,473
Diluted earnings per share	$	0.50	$	0.19	$	0.05	$	0.07

Anti-dilutive options to purchase 94,683 and 424,480 shares of common stock with respective weighted-average exercise prices of $13.73 and $5.54 were outstanding at September 30, 2013 and 2012, respectively, but were excluded from the computation of common share equivalents for each of the three and nine month periods, because the exercise prices were greater than the average market price of the common shares.

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net earnings for the period	$ 7,380	$ 1,379
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Amortization of deferred loan origination fees	(137)	(115)
Amortization of premiums and discounts on investment and mortgage-backed securities - net	(19)	21
Amortization of mortgage servicing rights	102	868
Change in valuation of capitalized mortgage servicing rights	(861)	78
Depreciation and amortization	941	1,042
Provision for losses on loans	(509)	1,599
Deferred taxes	165	(57)
Net stock based compensation expense	607	287
Provisions for losses on REO	526	910
(Gain)/loss on sale of real estate acquired through foreclosure	405	(99)
Gain on sale of investments	(61)	(1)
Gain on sale of loans	(1,486)	(1,714)
Loss on sale of assets	7	3
Loans originated for sale in the secondary market	(78,622)	(77,424)
Proceeds from sale of loans in the secondary market	84,821	80,887
Net increase in cash surrender value of life insurance	(481)	(504)
Increase (decrease) in cash due to changes in:
Accrued interest receivable	160	203
Prepaid expenses and other assets	(2,104)	259
Accrued other liabilities	(4,975)	728
Net cash provided by operating activities	5,859	8,350
Cash flows provided by (used in) investing activities:
Principal repayments, maturities on securities held to maturity	176	2,141
Principal repayments, maturities on securities available for sale	31,130	14,506
Purchases of investment securities designated as available for sale	(72,464)	(76,166)
Proceeds from sale of investments	24,031	8
Loan principal repayments	158,633	207,291
Loan disbursements	(179,960)	(154,659)
Proceeds from sale of office premises and equipment	0	19
Additions to office premises and equipment	(953)	(485)
Proceeds from sale of real estate acquired through foreclosure	3,758	2,862
Net cash used in investing activities	(35,649)	(4,483)
Net cash provided by (used in) operating and investing activities (balance carried forward)	(29,790)	3,867
Net cash provided by (used in) operating and investing activities (balance brought forward)	(29,790)	3,867
Cash flows used in financing activities:
Net increase (decrease) in deposits	(18,212)	1,045
Proceeds from Federal Home Loan Bank advances and other borrowings	106,537	113,401
Repayment of Federal Home Loan Bank advances and other borrowings	(99,349)	(129,220)
Net proceeds from exercised warrants	537	0
Decrease in advances by borrowers for taxes and insurance	(917)	(547)
Net cash used in financing activities	(11,404)	(15,321)
Decrease in cash and cash equivalents	(41,194)	(11,454)
Cash and cash equivalents at beginning of period	58,379	38,374
Cash and cash equivalents at end of period	17,185	26,920
Cash paid during the period for:
Interest on deposits and borrowings	4,123	6,015
Income taxes paid	25	25
Transfers from loans to real estate acquired through foreclosure	$ 2,360	$ 4,671

Consolidated Statements of Financial Condition (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
ASSETS
Cash and due from banks	$ 15,022	$ 13,815
Interest-bearing deposits in other financial institutions	2,163	44,564
Cash and cash equivalents	17,185	58,379
Securities available for sale, at market	101,211	85,298
Securities held to maturity, at cost	725	903
Loans held for sale-at lower of cost or market	1,831	6,544
Loans receivable-net	577,003	554,575
Office premises and equipment-net	7,813	8,105
Real estate acquired through foreclosure	5,632	10,581
Federal Home Loan Bank stock-at cost	9,888	9,888
Accrued interest receivable	2,471	2,631
Mortgage servicing rights-at lower of cost or market	4,106	3,245
Prepaid expenses and other assets	11,668	3,525
Cash surrender value of life insurance	21,066	20,585
Total assets	760,599	764,259
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	609,012	627,224
Other Borrowings	11,931	10,923
Advances from the Federal Home Loan Bank	59,477	53,297
Advances by borrowers for taxes and insurance	1,718	2,635
Accounts payable and accrued liabilities	11,181	10,453
Total liabilities	693,319	704,532
Commitments	0	0
Stockholders' equity:
Preferred stock-$1 par value; authorized 100,000 shares; no shares outstanding	0	0
Common stock-$1 par value; authorized 29,900,000 shares; 15,282,352 and 14,911,949 shares issued at September 30, 2013 and December 31, 2012 respectively	15,282	14,912
Additional paid-in capital	64,095	63,310
Warrants-2,601,468 at September 30, 2013 and 2,857,107 at December 31, 2012	1,285	1,411
Retained earnings	11,893	4,513
Accumulated other comprehensive income (loss)	(871)	100
Unearned compensation	(290)	(405)
Treasury stock-1,678,913 shares at September 30, 2013 and December 31, 2012, at cost	(24,114)	(24,114)
Total stockholders' equity	67,280	59,727
Total liabilities and stockholders' equity	$ 760,599	$ 764,259