Camco Finl Corp has a market cap of $17.4 million; its shares were traded at around $2.51 with a P/E ratio of 9.6 and P/S ratio of 0.4.
Highlight of Business Operations:Camcos net earnings for the three months ended March 31, 2012, totaled $413,000, a decrease of $239,000, from the net earnings of $652,000 reported in the comparable 2011 period. On a per share basis, the net earnings for the three months ended 2012 were $0.06, compared to $0.09 per share in the three months of 2011. The decrease in earnings was primarily attributable to decreased gain on sale of investments and net interest income which was offset partially by increased gain on sale of loans and decreased compensation, real estate owned and loan expenses.
Net interest income totaled $6.2 million for the three months ended March 31, 2012, a decrease of $421,000 or 6.4%, compared to the three months period ended March 31, 2011, generally reflecting the effects of a $22.6 million decrease in the average balance of interest earning assets coupled with the decrease of average yield on earning assets of 51 basis points. This was partially offset by a $49.0 million decrease in interest-bearing liabilities and a decrease of 35 basis points related to the cost of funding. Due to these changes the net interest margin decreased 13 basis points to 3.50% in 2012 compared to 3.63% of 2011.
The following table presents for the periods indicated the total dollar amount of interest income from average interest-earning assets and the resulting yields, and the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. The table does not reflect any effect of income taxes. Balances are based on the average of month-end balances which, in the opinion of management, do not differ materially from daily balances.
The decrease in gain on sale of investments can be attributed to the fact that there were no sales in 2012. Gain on sale of loans increased in 2012 primarily due to 2011 including the sale of three portfolio loans at a loss of $433,000, which was offset by the 2011 year to date gain on the sale of mortgage loans of $463,000. When comparing the three months ended March 31, 2012 versus 2011 the gain on sale of mortgage loans increased $101,000.
Liquidity sources also include deposits, borrowings and principal and interest repayments on loans. While scheduled loan repayments and maturing investments are relatively predictable, deposit flows and early loan and security prepayments are influenced more by interest rates, general economic conditions, and competition and are difficult to predict. Approximately $190.6 million of the Corporations certificate of deposit portfolio is scheduled to mature during the next 12 months. Depositors continue a preference toward short-term certificates or other issuances less than 18 months. The shorter term preference places additional liquidity pressure on the Corporation, however, management has seen a weakening in competition for deposits in the current economic environment. A material loss of these short-term deposits could force us to seek funding through contingency sources, which may negatively impact earnings.
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