10-K

UNITED STATES
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, 2007

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

(Exact name of registrant as specified in its charter)

Delaware	51-0110823
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

6901 Glenn Highway, Cambridge, Ohio 43725

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (740) 435-2020

Securities registered pursuant to Section 12(b) of the Act:

Common Stock, $1 par value per share	NASDAQ Global Market
(Title of Each Class)	(Name of exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act:

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes o     No þ

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes o     No þ

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes þ      No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated filer o	Accelerated filer þ	Non-accelerated filer o	Smaller reporting company o
	(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes o     No þ

The aggregate market value of the voting stock held by non-affiliates of the registrant, computed by reference to the last sale reported as of June 30, 2007, was $91.6 million. There were 7,155,595 shares of the registrant’s common stock outstanding on February 15, 2008.

DOCUMENTS INCORPORATED BY REFERENCE:

Part I and Part II of Form 10-K: Portions of the 2007 Annual Report to Stockholders
Part III of Form 10-K: Portions of the Proxy Statement for the 2008 Annual Meeting of Stockholders

TABLE OF CONTENTS

PART I
	Item 1. Business.
	Item 1B. Unresolved Staff Comments.
	Item 2. Properties.
	Item 3. Legal Proceedings.
	Item 4. Submission of Matters to a Vote of Security Holders.
PART II
	Item 5. Market for Registrant’s Common Stock, Related Stockholder Matters and Issuer Purchases of Common Stock.
	Item 6. Selected Consolidated Financial Data.
	Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
	Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
	Item 8. Financial Statements and Supplementary Data.
	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.
	Item 11. Executive Compensation.
	Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
Equity Compensation Plan Information
	Item 13. Certain Relationships and Related Transactions, and Director Independence
	Item 14. Principal Accountant Fees and Services.
PART IV
	Item 15. Exhibits and Financial Statement Schedules.
SIGNATURES
INDEX TO EXHIBITS
EX-4
EX-10(XV)
EX-10(XVI)
EX-13
EX-23
EX-31(I)
EX-31(II)
EX-32(I)
EX-32(II)

PART I

Item 1. Business.

General

Camco Financial Corporation (“Camco”) is a financial holding company that was organized under Delaware law in 1970. Camco is engaged in the financial services business in Ohio, Kentucky and West Virginia, through its wholly-owned subsidiaries, Advantage Bank and Camco Title Agency, Inc. In June 2001, Camco completed a reorganization in which it combined its banking activities under one Ohio savings bank charter known as Advantage Bank (“Advantage” or the “Bank”). Prior to the reorganization, Camco operated five separate banking subsidiaries serving distinct geographic areas. The branch office groups in each of the regions previously served by the subsidiary banks, except for the Bank’s Ashland, Kentucky, division, which was sold in 2004, now operate as regions of Advantage. In 2003, Camco dissolved its second tier subsidiary, Camco Mortgage Corporation, and converted its offices into branch offices of the Bank. In August 2004, Camco completed a business combination with London Financial Corporation of London, Ohio, and its wholly-owned subsidiary, The Citizens Bank of London. The acquisition was accounted for using the purchase method of accounting and, therefore, the financial statements for prior periods have not been restated. At the time of the merger, Advantage Bank merged into The Citizens Bank of London and changed the name of the resulting institution to Advantage Bank. As a result, Camco’s subsidiary financial institution is now an Ohio-chartered commercial bank instead of an Ohio savings bank. Further, Camco converted from a regulated thrift holding company to a financial holding company.

Advantage is primarily regulated by the State of Ohio Department of Commerce, Division of Financial Institutions (the “Division”), and the Federal Deposit Insurance Corporation (the “FDIC”). Advantage is a member of the Federal Home Loan Bank (the “FHLB”) of Cincinnati, and its deposit accounts are insured up to applicable limits by the Deposit Insurance Fund (the “DIF”) administered by the FDIC. Camco is regulated by the Federal Reserve Board.

Advantage’s lending activities include the origination of commercial real estate and business loans, consumer, and residential conventional fixed-rate and variable-rate mortgage loans for the acquisition, construction or refinancing of single-family homes located in Camco’s primary market areas. Camco also originates construction and permanent mortgage loans on condominiums, two- to four-family, multi-family (over four units) and nonresidential properties. Camco continues to diversify the balance sheet through increasing commercial, commercial real estate, and consumer loan portfolios as well as checking and money market deposit accounts.

The financial statements for Camco and its subsidiaries are prepared on a consolidated basis. The principal source of revenue for Camco on an unconsolidated basis has historically been dividends from the Bank. Payment of dividends to Camco by the Bank is subject to various regulatory restrictions and tax considerations.

References in this report to various aspects of the business, operations and financial condition of Camco may be limited to Advantage, as the context requires.

Camco’s Internet site, http://www.camcofinancial.com, provides Camco’s annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 free of charge as soon as reasonably practicable after Camco has filed the report with the Securities and Exchange Commission.

Lending Activities

General. Camco’s lending activities include the origination of commercial real estate and business loans, consumer loans, and conventional fixed-rate and adjustable-rate mortgage loans for the construction, acquisition or refinancing of single-family residential homes located in Advantage’s primary market areas. Construction and permanent mortgage loans on condominiums, multifamily (over four units) and nonresidential properties are also offered by Camco.

2

Loan Portfolio Composition. The following table presents certain information regarding the composition of Camco’s loan portfolio at the dates indicated:

	At December 31,
	2007						2006						2005						2004						2003
				Percent						Percent						Percent						Percent						Percent
				Of						Of						Of						Of						Of
				Total						Total						Total						Total						Total
	Amount			Loans			Amount			Loans			Amount			Loans			Amount			Loans			Amount			Loans
	(Dollars in thousands)
Type of loan:
Existing residential properties (1)	$	557,050			68.6	%	$	590,546			72.3	%	$	582,487			69.3	%	$	593,932			71.9	%	$	640,944			80.9	%
Construction and development		45,677			5.6			42,654			5.2			74,601			8.9			50,560			6.1			28,892			3.6
Nonresidential real estate		126,437			15.6			100,189			12.2			95,380			11.3			105,247			12.7			51,533			6.5
Consumer and other loans(2)		89,395			11.0			91,917			11.2			94,547			11.3			84,550			10.2			78,155			9.8
Total	$	818,559			100.8			825,307			100.9			847,015			100.8			834,289			100.9			799,524			100.8
Less:
Unamortized yield adjustments		166			(0.0	)		(8	)		(0.0	)		(266	)		(0.0	)		(937	)		(0.1	)		(810	)		(0.1	)
Allowance for loan losses		(6,623	)		(0.8	)		(7,144	)		(0.9	)		(6,959	)		(0.8	)		(6,476	)		(0.8	)		(5,641	)		(0.7	)
Total loans, net	$	812,102			100.0	%	$	818,154			100.0	%	$	839,790			100.0	%	$	826,876			100.0	%	$	793,073			100.0	%

(1)	Includes home equity lines of credit.
(2)	Includes second mortgage, multifamily and commercial loans.

Loan Maturity Schedule. The following table sets forth certain information as of December 31, 2007, regarding the dollar amount of loans maturing in Camco’s portfolio based on the contractual terms to maturity of the loans. Demand loans, loans having no stated schedule of repayments and loans having no stated maturity, are reported as due in one year or less.

			Due after
	Due in one		one through		Due after
	year or less		five years		five years		Total
	(In thousands)
Loans:
Existing residential properties (1)	$	15,763	$	68,191	$	351,476	$	435,430
Multifamily		2,694		18,238		19,658		40,590
Nonresidential real estate		16,986		15,231		94,220		126,437
Construction and development		14,729		8,184		22,764		45,677
Commercial		17,013		18,045		6,493		41,551
HELOC		972		68,872		51,775		121,619
Consumer and other loans		2,171		4,570		514		7,255
Total	$	70,328	$	201,331	$	546,900	$	818,559

(1) Excludes loans held for sale of $3.2 million.

The following table sets forth at December 31, 2007, the dollar amount of all loans due after December 31, 2008, which have fixed or adjustable interest rates:

	Due after
	December 31, 2008
	(In thousands)
Fixed rate of interest	$	232,739
Adjustable rate of interest		515,492
Total	$	748,231

Generally, loans originated by Advantage are on a fully-amortized basis. Advantage has no rollover provisions in its loan documents and anticipates that loans will be paid in full by the maturity date.

3

Residential Loans. A large portion of the lending activity of Advantage is the origination of fixed-rate and adjustable-rate conventional loans for the acquisition, refinancing or construction of single-family residences. Excluding construction loans and home equity line of credit, approximately 53.2% of total loans at December 31, 2007, consisted of loans secured by mortgages on one- to four-family residential properties.

Federal regulations and Ohio law limit the amount which Advantage may lend in relationship to the appraised value of the underlying real estate at the time of loan origination (the “Loan-to-Value Ratio” or “LTV”). In accordance with such regulations and law, Advantage generally makes loans for its own portfolio on single-family residences up to 95% of the value of the real estate and improvements. Advantage generally requires the borrower on each loan with an LTV in excess of 80% to obtain private mortgage insurance or a guarantee by a federal agency. Advantage permits, on an exception basis, borrowers to exceed a LTV of 80% without private mortgage insurance or a guarantee by a federal agency.

The interest rate adjustment periods on adjustable-rate mortgage loans (“ARMs”) offered by Advantage are generally one, three and five years. The interest rates initially charged on ARMs and the new rates at each adjustment date are determined by adding a stated margin to a designated interest rate index. Advantage has generally used one-year and three-year United States Treasury note yields, adjusted to a constant maturity, as the index for one-year and three-year adjustable-rate loans, respectively. Advantage has used the London Interbank Offered Rate (“LIBOR”) and FHLB advance rates as additional indices on certain loan programs to diversify its concentrations of indices that may prove beneficial during repricing of loans throughout changing economic cycles. The maximum adjustment at each adjustment date for ARMs is usually 2%, with a maximum adjustment of 6% over the term of the loan.

From time to time, Advantage originates ARMs which have an initial interest rate that is lower than the sum of the specified index plus the margin. Such loans are subject to increased risk of delinquency or default due to increasing monthly payments as the interest rates on such loans increase to the fully indexed level. Advantage attempts to reduce the risk by underwriting one—year ARMs at the fully-indexed rate and three-year and five-year ARMs utilizing the note rates. None of Advantage’s ARMs has negative amortization or “payment option” features.

Residential mortgage loans offered by Advantage are usually for terms of up to 30 years, which could have an adverse effect upon earnings if the loans do not reprice as quickly as the cost of funds. To minimize such effect, Advantage generally sells fixed-rate loans to Freddie Mac and Fannie Mae. Furthermore, experience reveals that, as a result of prepayments in connection with refinancings and sales of the underlying properties, residential loans generally remain outstanding for periods which are substantially shorter than the maturity of such loans.

At December 31, 2007, fixed-rate loans comprised 40.1% of the 1-4 family residential loan portfolio. Approximately 50.2% and 4.9% of the 1-4 family residential loan portfolio had adjustable rates tied to U.S. Treasury note yields and LIBOR, respectively.

Construction and Development Loans. Advantage offers residential construction loans both to owner-occupants and to builders for homes being built under contract with owner-occupants. Advantage also makes loans to persons constructing projects for investment purposes. Developed building lots are generally made on an adjustable-rate basis for terms of up to three years with an LTV of 80% or less.

Construction loans to owner-occupants are 30-year fixed rate, 15-year fixed rate or adjustable-rate long-term loans on which the borrower pays only interest on the disbursed portion during the construction period, which is usually 6 months. Some construction loans to builders, however, have terms of up to 24 months. At December 31, 2007, approximately $23.0 million, of Advantage’s total loans consisted of construction loans for 1-4 family properties.

Construction loans for investment properties involve greater underwriting and default risks than loans secured by mortgages on existing properties or construction loans for single-family residences. Loan funds are advanced upon the security of the project under construction, which is more difficult to value in the case of investment properties before the completion of construction. Moreover, because of the uncertainties inherent in estimating construction costs, it is relatively difficult to evaluate precisely the total loan funds required to complete a project and the related LTV ratios. In the event a default on a construction loan occurs and foreclosure follows, Advantage could be adversely affected because it would have to take control of the project and either arrange for completion of construction or dispose of the unfinished project. At December 31, 2007, Advantage had $16.2 million of land development loans, of which $5.2 million were classified as impaired and on nonaccrual status.

4

Nonresidential Real Estate Loans. Advantage originates loans secured by mortgages on nonresidential real estate, including retail, office and other types of business facilities. Nonresidential real estate loans are generally made on an adjustable-rate basis for terms of up to 20 years. Nonresidential real estate loans originated by Advantage generally have an LTV of 80% or less. The largest nonresidential real estate loan outstanding at December 31, 2007, was a $5.4 million loan secured by a commercial building. Nonresidential real estate loans comprised $126.4 million, or 15.4% of total loans at December 31, 2007.

Nonresidential real estate lending is generally considered to involve a higher degree of risk than residential lending due to the relatively larger loan amounts and the effects of general economic conditions on the successful operation of income-producing properties. Advantage has endeavored to reduce this risk by carefully evaluating the credit history and past performance of the borrower, the location of the real estate, the quality of the management operating the property, the debt service ratio and cash flow analysis, the quality and characteristics of the income stream generated by the property and appraisals supporting the property’s valuation.

Consumer and Other Loans. Advantage makes various types of consumer loans, including loans made to depositors on the security of their savings deposits, automobile loans, home improvement loans, home equity line of credit loans and unsecured personal loans. Home equity loans are made at fixed and variable rates of interest for terms of up to 10 years. Most other consumer loans are generally made at fixed rates of interest for terms of up to 10 years. The risk of default on consumer loans during an economic recession is greater than for residential mortgage loans.

Advantage’s home equity line of credit loan portfolio totaled $121.6 million, or 14.9%, of the total loan portfolio at December 31, 2007. During 2007, management tightened lending standards on home equity lines of credit in response to significant economic weakness and declining home values. These actions included increasing minimum credit scores and reducing the combined LTV on new loans. At December 31, 2007, education, consumer and other loans constituted $7.3 million of Advantage’s total loans.

Loan Solicitation and Processing. Loan originations are developed from a number of sources, including: solicitations by Advantage’s lending staff; referrals from real estate brokers, loan brokers and builders; participations with other banks; continuing business with depositors, other business borrowers and real estate developers; and walk-in customers. Advantage’s management stresses the importance of individualized attention to the financial needs of its customers. During 2007, approximately $48.2 million, or 53.7%, of new consumer and home equity lines of credit were originated through brokers primarily in Advantage’s market areas.

The loan origination process is centralized as to processing and underwriting of loans. Mortgage loan applications from potential borrowers are taken by loan officers originating loans, and then forwarded to the loan department for processing. The Bank typically obtains a credit report, verification of employment and other documentation concerning the borrower and orders an appraisal of the fair market value of the collateral which will secure the loan. The collateral is thereafter physically inspected and appraised by a staff appraiser or by a designated fee appraiser approved by the Board of Directors of Advantage. Upon the completion of the appraisal and the receipt of all necessary information regarding the borrower, the loan is reviewed by an underwriter with appropriate loan approval authority. If the loan is approved, an attorney’s opinion of title or title insurance is obtained on the real estate which will secure the loan. Borrowers are required to carry satisfactory fire and casualty insurance and, if applicable, flood and private mortgage insurance, and to name Advantage as an insured mortgagee.

The procedure for approval of construction loans is the same as for residential mortgage loans, except that the appraiser evaluates the building plans, construction specifications and construction cost estimates. Advantage also evaluates the feasibility of the proposed construction project.

Consumer loans are underwritten on the basis of the borrower’s credit history and an analysis of the borrower’s income and expenses, ability to repay the loan and the value of the collateral. Centralized processing and underwriting are utilized to add adequate controls over the credit review process.

Loan Originations, Purchases and Sales. Generally all residential fixed-rate loans made by Advantage are originated with documentation which will permit a possible sale of such loans to secondary mortgage market investors. When a mortgage loan is sold to the investor, Advantage generally services the loan by collecting monthly payments of principal and interest and forwarding such payments to the investor, net of a servicing fee. During the year ended December 31, 2007, Advantage also sold loans with servicing released. Fixed-rate loans not sold and generally all of the ARMs originated by Advantage are held in Advantage’s loan portfolio. During the year ended December 31, 2007, Advantage sold approximately $50.0 million in loans. Loans serviced by Advantage for others totaled $516.0 million at December 31, 2007.

5

The Corporation’s lending efforts have historically focused on loans secured by existing 1-4 family residential properties. Generally, such loans have been underwritten on the basis of no more than an 80% loan-to-value ratio, which has historically provided the Corporation with adequate collateral coverage in the event of default. Nevertheless, Advantage, as with any lending institution, is subject to the risk that residential real estate values could deteriorate in its primary lending areas within Ohio, West Virginia, and northern Kentucky, thereby impairing collateral values.

Of the total loans originated by Advantage during the year ended December 31, 2007, 62.4% were ARM and 37.6% were fixed-rate loans. Adjustable-rate loans comprised 68.4% of Advantage’s total loans outstanding at December 31, 2007.

From time to time, Advantage sells participation interests in mortgage loans, business loans and commercial loans originated by it and purchases whole loans or participation interests in loans originated by other lenders. Advantage held whole loans and participations in loans originated by other lenders of approximately $16.4 million at December 31, 2007. Loans which Advantage purchases must meet or exceed the underwriting standards for loans originated by Advantage.

The following table presents Advantage’s mortgage loan origination, purchase, sale and principal repayment activity for the periods indicated:

	Year ended December 31,
	2007			2006			2005			2004			2003
	(In thousands)
Loans originated:
Construction (purchased and originated)	$	41,323		$	23,752		$	45,066		$	45,826		$	37,791
Permanent		80,900			86,613			121,033			164,540			422,021
Consumer and other		173,070			172,403			234,214			126,168			147,668
Total loans originated		295,293			282,768			400,313			336,534			607,480
Loans purchased (1)		3,021			3,698			11,141			27,301			12,056
Reductions:
Principal repayments (1)		249,922			250,409			323,314			212,450			324,463
Loans sold (1)		49,953			50,924			69,734			117,886			279,005
Transfers from loans to real estate owned		5,490			4,092			3,725			6,591			4,010
Total reductions		(305,365	)		(305,425	)		(396,773	)		(336,927	)		(607,478	)
Increase (decrease) in other items, net (2)		505			(959	)		(2,656	)		(2,140	)		(4,476	)
Decrease due to branch sales (3)		—			—			—			(42,634	)		—
Increase due to mergers (4)		—			—			—			49,050			—
Net increase (decrease)	$	(6,546	)	$	(19,918	)	$	12,025		$	31,184		$	7,582

(1)	Includes SBA guaranteed loans.
(2)	Other items primarily consist of amortization of deferred loan origination fees and the provision for losses on loans.
(3)	The 2004 decrease resulted from the sale of the Ashland division.
(4)	The 2004 increase resulted from the acquisition of London.

Lending Limit. Federal regulations and Ohio law generally impose a lending limit on the aggregate amount that a depository institution can lend to one borrower to an amount equal to 15% of the institution’s total capital for risk-based capital purposes plus any loan reserves not already included in total capital (the “Lending Limit Capital”). A depository institution may loan to one borrower an additional amount not to exceed 10% of the institution’s Lending Limit Capital, if the additional amount is fully secured by certain forms of “readily marketable collateral.” Real estate is not considered “readily marketable collateral.” In applying this limit, the regulations require that loans to certain related or affiliated borrowers be aggregated.

The largest amount which Advantage could have loaned to one borrower at December 31, 2007, was approximately $13.0 million. The largest amount Advantage had outstanding to one borrower and related persons or entities at December 31, 2007, was $9.6 million, which consisted of three loans secured by 1-4 family investment properties.

6

Loan Concentrations. Advantage has historically originated loans secured by real estate. At December 31, 2007, approximately 94.0% of total loans were secured by real estate, with 70.9% of total loans secured by 1-4 family residential real estate. Home equity lines of credit comprised 14.9% of total loans at December 31, 2007. There were no concentrations of loans to specific industries that exceeded 10% of total loans at December 31, 2007.

Loan Origination and Other Fees. In addition to interest earned on loans, Advantage may receive loan origination fees or “points” of generally up to 1.0% of the loan amount, depending on the type of loan, plus reimbursement of certain other expenses. Loan origination fees and other fees are a volatile source of income, varying with the volume of lending and economic conditions. All nonrefundable loan origination fees and certain direct loan origination costs are deferred and recognized as an adjustment to yield over the life of the related loan in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 91.

Delinquent Loans, Nonperforming Assets and Classified Assets. Generally, after a loan payment is 15 days delinquent, a late charge of 5% of the amount of the payment is assessed and a collection officer contacts the borrower to request payment. In certain limited instances, Advantage may modify the loan or grant a limited moratorium on loan payments to enable the borrower to reorganize his or her financial affairs. Advantage generally initiates foreclosure proceedings, in accordance with applicable laws, when it appears that a modification or moratorium would not be productive.

Real estate which has been acquired by Advantage as a result of foreclosure or by deed in lieu of foreclosure is classified as “real estate owned” until it is sold. “Real estate owned” is recorded at the lower of the book value of the loan or the fair value of the property less estimated selling expenses at the date of acquisition. Periodically, “real estate owned” is reviewed to ensure that fair value is not less than carrying value, and any write-down resulting from the review is charged to earnings as a provision for losses on real estate acquired through foreclosure. All costs incurred from the date of acquisition are expensed in the period paid.

The following table reflects the amount of loans in a delinquent status as of the dates indicated:

	At December 31,
	2007			2006			2005			2004			2003
	(Dollars in thousands)
Loans delinquent for:
30 to 89 days	$	18,210		$	13,833		$	9,490		$	12,302		$	8,682
90 or more days		19,070			18,536			13,922			9,794			13,608
Total delinquent loans	$	37,280		$	32,369		$	23,412		$	22,096		$	22,290
Ratio of total delinquent loans to total net loans (1)		4.59	%		3.91	%		2.76	%		2.64	%		2.77	%

(1) Total net loans include loans held for sale.

Nonaccrual status denotes loans three months past due, loans for which, in the opinion of management, the collection of additional interest is unlikely, or loans that meet nonaccrual criteria as established by regulatory authorities. Payments received on a nonaccrual loan are either applied to the outstanding principal balance or recorded as interest income, depending on management’s assessment of the collectability of the loan.

7

The following table sets forth information with respect to Advantage’s nonaccrual and delinquent loans for the periods indicated.

	At December 31,
	2007			2006			2005			2004			2003
	(Dollars in thousands)
Loans accounted for on nonaccrual basis:
Real estate:
Residential(1)	$	15,775		$	15,142		$	10,267		$	7,922		$	12,135
Nonresidential		7,148			1,989			3,109			463			357
Commercial		455			398			387			—			—
Consumer and other		617			136			159			1,409			1,116
Total nonaccrual loans		23,995			17,665			13,922			9,794			13,608
Accruing loans delinquent three months or more
Real estate:
Residential		1,520			871			—			—			—
Nonresidential		—			—			—			—			—
Consumer and other		—			—			—			—			—
Total loans 90 days past due and accruing		1,520			871			—			—			—
Total nonperforming loans	$	25,515		$	18,536		$	13,922		$	9,794		$	13,608
Allowance for loan losses	$	6,623		$	7,144		$	6,959		$	6,476		$	5,641
Nonperforming loans as a percent of total net loans (2)		3.13	%		2.23	%		1.64	%		1.17	%		1.69	%
Allowances for loan losses as a percent of nonperforming loans		26.0	%		38.5	%		50.0	%		66.1	%		41.5	%

(1)	Includes construction and development loans
(2)	Includes loans held for sale.

The amount of interest income that would have been recorded had nonaccrual loans performed in accordance with contractual terms totaled approximately $1.5 million for the year ended December 31, 2007. Interest collected on such loans and included in net earnings was $674,000.

Federal regulations require the Bank to classify its assets on a regular basis. Problem assets are to be classified as either (i) “substandard,” (ii) “doubtful” or (iii) “loss.” Substandard assets have one or more defined weaknesses and are characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Doubtful assets have the same weaknesses as substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of existing facts, conditions and value. Assets classified as “loss” are considered uncollectible and of such little value that their treatment as assets without the establishment of a specific reserve is unwarranted. Loans classified and generally charged off in the month are identified as a loss. Regulations provide for the reclassification of assets by examiners. At December 31, 2007, the aggregate amounts of Advantage’s classified assets were as follows:

	December 31, 2007
	(In thousands)
Classified assets:
Substandard	$	24,317
Doubtful		5,511
Loss		4
Total classified assets	$	29,832

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The interpretive guidance of the regulations also includes a “special mention” category, consisting of assets which do not currently expose an insured institution to a sufficient degree of risk to warrant classification, but which possess credit deficiencies or potential weaknesses deserving management’s close attention. Advantage had assets in the amount of $2.1 million designated as “special mention” at December 31, 2007.

At December 31, 2007, approximately $874,000 of loans were not classified as nonaccrual, not 90 days past due and accruing, or restructured but which management classified as problem assets due to concerns as to the ability of the borrowers to comply with repayment terms.

Allowance for Loan Losses. The allowance for loan losses is maintained at a level reflecting probable, incurred losses based on historical experience, the volume and type of lending conducted by the Bank, the status of past due principal and interest payments, general economic conditions (particularly as such conditions relate to the Bank’s market areas) and other factors related to the collectability of the Bank’s loan portfolio. The following table sets forth an analysis of Advantage’s allowance for loan losses:

	Year ended December 31,
	2007			2006			2005			2004			2003
	(Dollars in thousands)
Balance at beginning of year	$	7,144		$	6,959		$	6,476		$	5,641		$	5,490
Charge-offs:
1-4 family residential real estate		1,048			646			877			1,142			509
Multifamily and nonresidential real estate		916			562			146			25			418
Consumer and other		133			231			257			430			392
Total charge-offs		2,097			1,439			1,280			1,597			1,319
Recoveries:
1-4 family residential real estate		26			25			265			180			17
Consumer and other		55			159			18			9			7
Total recoveries		81			184			283			189			24
Net (charge-offs) recoveries		(2,016	)		(1,255	)		(997	)		(1,408	)		(1,295	)
Provision for losses on loans		1,495			1,440			1,480			1,620			1,446
Increase attributable to mergers (1)		—			—			—			623			—
Balance at end of year	$	6,623		$	7,144		$	6,959		$	6,476		$	5,641
Net (charge-offs) recoveries to average loans		(.25	)%		(.15	)%		(.12	)%		(.17	)%		(.17	)%

(1) The 2004 increase resulted from the acquisition of London Financial Corporation.

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The following table sets forth the allocation of Advantage’s allowance for loan losses by type of loan at the dates indicated:

	At December 31,
	2007					2006					2005					2004					2003
			Percent					Percent					Percent					Percent					Percent
			Of loans					Of loans					Of loans					Of loans					Of loans
			In each					In each					In each					In each					In each
			Category					Category					Category					Category					Category
			To total					To total					To total					To total					To total
	Amount		Loans			Amount		Loans			Amount		Loans			Amount		Loans			Amount		Loans
	(Dollars in thousands)
Real estate:
Residential	$	2,723		53.2	%	$	2,367		57.4	%	$	2,470		56.0	%	$	2,317		59.0	%	$	2,923		69.0	%
Multi-family		1,413		5.0			1,168		5.3			512		6.1			798		5.7			354		5.6
Nonresidential		791		15.4			1,883		12.8			1,970		12.4			1,505		12.6			732		6.5
Construction		665		5.6			239		5.2			276		7.6			337		5.3			266		3.4
Commercial		268		5.1			952		4.3			1,035		2.5			653		2.0			612		2.2
Home equity lines of credit		690		14.9			252		14.1			232		12.8			334		12.2			177		11.2
Consumer & other		73		.8			283		0.9			464		2.6			532		3.2			577		2.1
Total	$	6,623		100.0	%	$	7,144		100.0	%	$	6,959		100.0	%	$	6,476		100.0	%	$	5,641		100.0	%

Investment and Mortgage-Backed Securities Activities

Federal regulations permit Camco to invest liquid assets, in United States Treasury obligations, securities of various U.S. Government sponsored enterprises, certificates of deposit at insured banks, corporate debt and equity securities or obligations of state and local political subdivision’s and municipalities. Camco is also permitted to make limited investments in commercial paper and certain mutual funds.

The following table sets forth the composition of Camco’s investment and mortgage-backed securities portfolio, except its stock in the FHLB of Cincinnati, at the dates indicated:

	At December 31,
	2007										2006										2005
	Amortized		% of			Fair		% of			Amortized		% of			Fair		% of			Amortized		% of			Fair		% of
	Cost		Total			Value		total			Cost		Total			Value		total			Cost		Total			Value		total
	(Dollars in thousands)
Held to maturity:
Municipal bonds	$	567		0.6	%	$	591		0.6	%	$	710		0.7	%	$	736		0.7	%	$	919		0.8	%	$	947		0.8	%
Mortgage-backed Securities		2,202		2.4			2,202		2.4			2,739		2.4			2,734		2.4			3,257		2.8			3,251		2.9
Total		2,769		3.0			2,793		3.0			3,449		3.1			3,470		3.1			4,176		3.6			4,198		3.7
Available for sale:
U.S. Government sponsored enterprises		37,519		40.9			37,782		41.2			55,962		49.6			55,578		50.1			47,993		41.3			47,374		41.7
Municipal bonds		210		0.2			212		.2			291		0.3			291		0.2			346		0.3			348		0.3
Corporate equity securities		157		0.2			164		.2			159		0.1			184		0.2			159		0.1			185		0.1
Mortgage-backed securities		51,051		55.7			50,761		55.4			52,950		46.9			51,453		46.4			63,536		54.7			61,607		54.2
Total		88,937		97.0			88,919		97.0			109,362		96.9			107,506		96.9			112,034		96.4			109,514		96.3
Total investments and mortgage-backed securities	$	91,706		100.0	%	$	91,712		100.0	%	$	112,811		100.0	%	$	110,976		100.0	%	$	116,210		100.0	%	$	113,712		100.0	%

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The following table presents the contractual maturities of Advantage’s investment securities, except its stock in the FHLB of Cincinnati and corporate equity securities, and the weighted-average yields for each range of maturities at December 31, 2007:

	At December 31, 2007
						After one					After five
	One year or less					through five years					through ten years					After ten years					Total
																									Weighted-
	Amortized		Average			Amortized		Average			Amortized		Average			Amortized		Average			Amortized		Fair		Average
	Cost		Yield			Cost		Yield			Cost		Yield			Cost		Yield			cost		Value		yield
	(Dollars in thousands)
U.S. Government Sponsored enterprises	$	23,515		4.69	%	$	14,004		5.05	%	$	—		—	%	$	—		—	%	$	37,519	$	37,782		4.82	%
Municipal bonds		335		5.43			352		5.98			—		—			90		9.85			777		803		6.19
Mortgage-backed Securities		4,585		4.16			9,548		4.27			20,581		4.27			18,539		5.09			53,253		52,963		4.55
Total	$	28,435		4.61	%	$	23,904		4.75	%	$	20,581		4.27	%	$	18,629		5.11	%	$	91,549	$	91,548		4.67	%

Excluding holdings of U.S. Government sponsored enterprises, there were no investments in securities of any one issuer exceeding 10% of Camco’s consolidated stockholders’ equity at December 31, 2007.

Deposits and Borrowings

General. Deposits are a primary source of Advantage’s funds for use in lending and other investment activities. In addition to deposits, Advantage derives funds from interest payments and principal repayments on loans, advances from the FHLB of Cincinnati and income on earning assets. Loan payments are a relatively stable source of funds, while deposit inflows and outflows fluctuate more in response to general interest rate and money market conditions. As part of Advantage’s asset and liability management strategy, FHLB advances and other borrowings are used to fund loan originations and for general business purposes. FHLB advances are also used on a short-term basis to compensate for reductions in the availability of funds from other sources.

Deposits. Deposits are attracted principally from within Advantage’s primary market area through the offering of a broad selection of deposit instruments, including interest-bearing and non-interest bearing checking accounts, money market deposit accounts, regular savings accounts, term certificate accounts and retirement savings plans. In 2006 we began offering brokered certificates of deposit as an alternative to advances from the FHLB. Interest rates paid, maturity terms, service fees and withdrawal penalties for the various types of accounts are established periodically by management of Advantage based on its liquidity requirements, growth goals and interest rates paid by competitors. Interest rates paid by Advantage on deposits are not currently limited by federal or state law or regulation.

The following table sets forth the dollar amount of deposits in the various types of savings programs offered by Advantage at the dates indicated:

	At December 31,
	2007					2006					2005
			Weighted-					Weighted-					Weighted-
	Amount		average rate			Amount		average rate			Amount		average rate
	(Dollars in thousands)
Non-interest bearing demand	$	35,755		—	%	$	31,706		—	%	$	32,127		—	%
Interest-bearing demand		91,132		1.57			94,722		1.36			117,430		0.87
Money market demand accounts		111,740		3.57			89,383		3.59			58,995		2.07
Passbook and statement savings accounts		36,963		0.27			47,997		0.26			61,356		0.25
Total certificate accounts		416,594		4.80			420,974		4.62			390,334		3.71
Total deposits	$	692,184		3.68	%	$	684,782		3.52	%	$	660,242		2.55	%

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The following table sets forth the amount and maturities of Advantage’s time deposits in excess of $100,000 at December 31, 2007:

	At December 31, 2007
	(In thousands)
Three months or less	$	23,694
Over three to six months		21,197
Over six to twelve months		35,184
Over twelve months		26,271
Total	$	106,346

Borrowings. The twelve regional FHLBs function as central reserve banks, providing credit for their member institutions. As a member in good standing of the FHLB of Cincinnati, Advantage is authorized to apply for advances from the FHLB of Cincinnati, provided certain standards of creditworthiness have been met. Advances are made pursuant to several different programs, each having its own interest rate and range of maturities. Depending on the program, limitations on the amount of advances are based either on a fixed percentage of an institution’s regulatory capital or on the FHLB’s assessment of the institution’s creditworthiness. Under current regulations, a member institution must meet certain qualifications to be eligible for FHLB advances. FHLB advances are secured by a blanket pledge on Advantage’s 1-4 family and multifamily residential loans, home equity lines of credit and FHLB stock.

Borrowings also include repurchase agreements and subordinated debentures. Repurchase agreements are collateralized by a portion of Advantage’s investment portfolio.

Competition

Advantage competes for deposits with other commercial banks, savings associations, savings banks, insurance companies and credit unions and with the issuers of commercial paper and other securities, such as shares in money market mutual funds. The primary factors in competing for deposits are interest rates and convenience of office location. In making loans, Advantage competes with other commercial banks, savings banks, savings associations, consumer finance companies, credit unions and other lenders. Advantage competes for loan originations primarily through the interest rates and loan fees it charges and through the efficiency and quality of the services it provides to borrowers. Competition is affected by, among other things, the general availability of lendable funds, general and local economic conditions, current interest rate levels and other factors which are not readily predictable.

Service Corporation Activities

Advantage has no operating subsidiaries. First S&L Corporation, a subsidiary of Advantage, is inactive and was capitalized on a nominal basis at December 31, 2007.

Employees

As of December 31, 2007, Camco had 278 full-time employees and 33 part-time employees. Camco believes that relations with its employees are good. Camco offers health and disability benefits and a 401(k) salary savings plan. None of the employees of Camco is represented by a collective bargaining unit.

REGULATION

General

As a financial holding company registered under the Bank Holding Company Act of 1956, as amended (the “BHC Act”), Camco is subject to regulation, examination and oversight by the Board of Governors of the Federal Reserve System (“FRB”). Although Camco is recognized as a financial holding company, most regulations pertaining to bank holding companies also apply to it. Advantage is a non-member of the FRB and is subject to regulation by the Division and the FDIC. Camco and Advantage must file periodic reports with these governmental agencies, as applicable, concerning their activities and financial condition. Examinations are conducted periodically by the applicable regulators to determine whether Camco and Advantage are in

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compliance with various regulatory requirements and are operating in a safe and sound manner. Advantage is also subject to certain regulations promulgated by the FRB.

Ohio Regulation

Regulation by the Division affects the internal organization of Advantage, as well as its depository, lending and other investment activities. Periodic examinations by the Division are usually conducted on a joint basis with the FDIC. Ohio law requires that Advantage maintain federal deposit insurance as a condition of doing business. The ability of Ohio banks to engage in certain state-authorized investments is subject to oversight and approval by the FDIC. See “Federal Deposit Insurance Corporation — State Chartered Bank Activities.”

Any mergers involving, or acquisitions of control of, Ohio banks must be approved by the Division. The Division may initiate certain supervisory measures or formal enforcement actions against Ohio banks. Ultimately, if the grounds provided by law exist, the Division may place an Ohio bank in conservatorship or receivership.

In addition to being governed by the laws of Ohio specifically governing banks, Advantage is also governed by Ohio corporate law, to the extent such law does not conflict with the laws specifically governing banks.

Federal Deposit Insurance Corporation

Supervision and Examination. The FDIC is responsible for the regulation and supervision of all commercial banks that are not members of the Federal Reserve System (“Non-member Banks”). The FDIC is an independent federal agency that insures the deposits, up to prescribed statutory limits, of federally insured banks and thrifts and safeguards the safety and soundness of the bank and thrift industries.

Non-member Banks are subject to regulatory oversight under various consumer protection and fair lending laws. These laws govern, among other things, truth-in-lending disclosure, equal credit opportunity, fair credit reporting and community reinvestment. Failure to abide by federal laws and regulations governing community reinvestment could limit the ability of an institution to open a new branch or engage in a merger transaction.

State Chartered Bank Activities. The ability of Advantage to engage in any state-authorized activities or make any state-authorized investments, as principal, is limited if such activity is conducted or investment is made in a manner different than that permitted for, or subject to different terms and conditions than those imposed on, national banks. Engaging as a principal in any such activity or investment not permissible for a national bank is subject to approval by the FDIC. Such approval will not be granted unless certain capital requirements are met and there is not a significant risk to the FDIC insurance fund. Most equity and real estate investments (excluding office space and other real estate owned) authorized by state law are not permitted for national banks. Certain exceptions are granted for activities deemed by the FRB to be closely related to banking and for FDIC-approved subsidiary activities.

Liquidity. Advantage is not required to maintain a specific level of liquidity; however, the FDIC expects it to maintain adequate liquidity to protect safety and soundness.

Regulatory Capital Requirements. Camco and Advantage are required by applicable law and regulations to meet certain minimum capital requirements. The capital standards include a leverage limit, or core capital requirement, a tangible capital requirement and a risk-based capital requirement.

The leverage capital requirement is a minimum level of Tier 1 capital to average total consolidated assets of 4%. “Tier 1” capital includes common stockholders equity, noncumulative perpetual preferred stock and minority interest in the equity accounts of consolidated subsidiaries, less all intangibles, other than includable purchased mortgage servicing rights and credit card relationships.

The risk-based capital requirement specifies total capital, which consists of core or Tier 1 capital and certain general valuation reserves, as a minimum of 8% of risk-weighted assets. For purposes of computing risk-based capital, assets and certain off-balance sheet items are weighted at percentage levels ranging from 0% to 100%, depending on their relative risk.

At December 31, 2007, Camco and Advantage exceeded the capital requirements to be considered “well-capitalized.”

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Federal law prohibits a financial institution from making a capital distribution to anyone or paying management fees to any person having control of the institution if, after such distribution or payment, the institution would be undercapitalized. In addition, each company controlling an undercapitalized institution must guarantee that the institution will comply with its capital restoration plan until the institution has been adequately capitalized on average during each of the four preceding calendar quarters and must provide adequate assurances of performance.

Transactions with Affiliates and Insiders

All transactions between banks and their affiliates must comply with Sections 23A and 23B of the Federal Reserve Act (the “FRA”) and the FRB’s Regulation W. An affiliate is any company or entity which controls, is controlled by or is under common control with the financial institution. In a holding company context, the parent holding company of a bank and any companies that are controlled by such parent holding company are affiliates of the institution. Generally, Sections 23A and 23B of the FRA (i) limit the extent to which a financial institution or its subsidiaries may engage in “covered transactions” with any one affiliate up to an amount equal to 10% of such institution’s capital stock and surplus for any one affiliate and 20% of such capital stock and surplus for the aggregate of such transactions with all affiliates, and (ii) require that all such transactions be on terms substantially the same, or at least as favorable to the institution or the subsidiary, as those provided to a non-affiliate. The term “covered transaction” includes the making of loans, purchase of assets, issuance of a guarantee and similar types of transactions. Exemptions from Sections 23A or 23B of the FRA may be granted only by the FRB. Advantage was in compliance with these requirements at December 31, 2007.

Change in Control

Federal Law. The Federal Deposit Insurance Act (the “FDIA”) provides that no person, acting directly or indirectly or in concert with one or more persons, shall acquire control of any insured depository institution or holding company, unless 60-days prior written notice has been given to the primary federal regulator for that institution and such regulator has not issued a notice disapproving the proposed acquisition. Control, for purposes of the FDIA, means the power, directly or indirectly, alone or acting in concert, to direct the management or policies of an insured institution or to vote 25% or more of any class of securities of such institution. Control exists in situations in which the acquiring party has direct or indirect voting control of at least 25% of the institution’s voting shares, controls in any manner the election of a majority of the directors of such institution or is determined to exercise a controlling influence over the management or policies of such institution. In addition, control is presumed to exist, under certain circumstances where the acquiring party (which includes a group “acting in concert”) has voting control of at least 10% of the institution’s voting stock. These restrictions do not apply to holding company acquisitions. See “Holding Company Regulation”.

Ohio Law. A statutory limitation on the acquisition of control of an Ohio bank requires the written approval of the Division prior to the acquisition by any person or entity of a controlling interest. Control exists, for purposes of Ohio law, when any person or entity which, either directly or indirectly, or acting in concert with one or more other persons or entities, owns, controls, holds with power to vote, or holds proxies representing, 15% or more of the voting shares or rights of an association, or controls in any manner the election or appointment of a majority of the directors. Ohio law also requires that certain acquisitions of voting securities that would result in the acquiring shareholder owning 20%, 33-1/3% or 50% of the outstanding voting securities of Camco must be approved in advance by the holders of at least a majority of the outstanding voting shares represented at a meeting at which a quorum is present and a majority of the portion of the outstanding voting shares represented at such a meeting, excluding the voting shares by the acquiring shareholder. This statute was intended, in part, to protect shareholders of Ohio corporations from coercive tender offers.

Holding Company Regulation

As a financial holding company, Camco has registered with the FRB and is subject to FRB regulations, examination, supervision and reporting requirements. Because Camco is a bank holding company that has elected to become a financial holding company, some of the restrictions on its activities are reduced. Camco’s financial holding company status allows Advantage to associate or have management interlocks with business organizations engaged in securities activities. In order to maintain status as a financial holding company, Advantage must be well capitalized and well managed, and must meet Community Reinvestment Act obligations. Failure to maintain such standards may ultimately permit the FRB to take certain enforcement actions against Camco.

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Federal Reserve Requirements

FRB regulations currently require banks to maintain reserves of 3% of net transaction accounts (primarily NOW accounts) up to $34.6 million (subject to an exemption of up to $9.3 million), and of 10% of net transaction accounts in excess of $34.6 million. At December 31, 2007, Advantage was in compliance with its reserve requirements.

Item 1A. Risk Factors.

Like all financial companies, Camco’s business and results of operations are subject to a number of risks, many of which are outside of our control. In addition to the other information in this report, readers should carefully consider that the following important factors, among others, could materially impact our business and future results of operations.

Changes in interest rates could adversely affect our financial condition and results of operations.

Our results of operations depend substantially on our net interest income, which is the difference between (i) interest income on interest-earning assets, principally loans and investment securities, and (ii) interest expense on deposit accounts and borrowings. These rates are highly sensitive to many factors beyond our control, including general economic conditions, inflation, recession, unemployment, money supply and the policies of various governmental and regulatory authorities. While we have taken measures intended to manage the risks of operating in a changing interest rate environment, there can be no assurance that these measures will be effective in avoiding undue interest rate risk.

Increases in interest rates can affect the value of loans and other assets, including our ability to realize gains on the sale of assets. We originate loans for sale and for our portfolio. Increasing interest rates may reduce the origination of loans for sale and consequently the fee income we earn on such sales. Further, increasing interest rates may adversely affect the ability of borrowers to pay the principal or interest on loans and leases, resulting in an increase in non-performing assets and a reduction of income recognized.

In contrast, decreasing interest rates have the effect of causing clients to refinance mortgage loans faster than anticipated. This causes the value of assets related to the servicing rights on loans sold to be lower than originally anticipated. If this happens, we may need to write down our servicing assets faster, which would accelerate our expense and lower our earnings.

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Credit risks could adversely affect our results of operations.

There are inherent risks associated with our lending activities, including credit risk, which is the risk that borrowers may not repay outstanding loans or that the value of the collateral securing loans will decrease. We extend credit to a variety of customers based on internally set standards and judgment. We attempt to manage credit risk through a program of underwriting standards, the review of certain credit decisions and an on-going process of assessment of the quality of the credit already extended. However, conditions such as inflation, recession, unemployment, changes in interest rates, money supply and other factors beyond our control may increase our credit risk. Such adverse changes in the economy may have a negative impact on the ability of borrowers to repay their loans. Because we have a significant amount of real estate loans, decreases in real estate values could adversely affect the value of property used as collateral. In addition, substantially all of our loans are to individuals and businesses in Ohio. Consequently, any decline in the economy of this market area could have a materially adverse effect on our financial condition and results of operations.

We operate in an extremely competitive market, and our business will suffer if we are unable to compete effectively.

In our market area, we encounter significant competition from other commercial banks, savings associations, savings banks, insurance companies, consumer finance companies, credit unions, other lenders and with the issuers of commercial paper and other securities, such as shares in money market mutual funds. The increasingly competitive environment is a result primarily of changes in regulation and the accelerating pace of consolidation among financial service providers. Many of our competitors have substantially greater resources and lending limits than we do and may offer services that we do not or cannot provide.

Legislative or regulatory changes or actions could adversely impact the financial services industry.

The financial services industry is extensively regulated. Federal and state banking laws and regulations are primarily intended for the protection of consumers, depositors and the deposit insurance funds, not to benefit our stockholders. Changes to laws and regulations or other actions by regulatory agencies may negatively impact us. Regulatory authorities have extensive discretion in connection with their supervisory and enforcement activities, including the imposition of restrictions on the operation of an institution, the classification of assets by the institution and the adequacy of an institution’s allowance for loan losses. The significant federal and state banking regulations that affect us are described in this 10-K under the heading “Regulation.”

Our ability to pay cash dividends is limited.

We are dependent primarily upon the earnings of our operating subsidiaries for funds to pay dividends on our common shares. The payment of dividends by our subsidiaries is subject to certain regulatory restrictions. As a result, any payment of dividends in the future by Camco will be dependent, in large part, on our subsidiaries’ ability to satisfy these regulatory restrictions and our subsidiaries’ earnings, capital requirements, financial condition and other factors. Although our financial earnings and financial condition have allowed us to declare and pay periodic cash dividends to our stockholders, there can be no assurance that our dividend policy or size of dividend distribution will continue in the future.

The preparation of financial statements requires management to make estimates about matters that are inherently uncertain.

Management’s accounting policies and methods are fundamental to how we record and report our financial condition and results of operations. Our management must exercise judgment in selecting and applying many of these accounting policies and methods in order to ensure that they comply with generally accepted accounting principles and reflect management’s judgment as to the most appropriate manner in which to record and report our financial condition and results of operations. Two of the most critical estimates are the level of the allowance of loan losses and the valuation of mortgage servicing rights. Due to the inherent nature of these estimates, we cannot provide absolute assurance that we will not significantly increase the allowance for loan losses or sustain loan losses that are significantly higher than the provided allowance, nor that we will not recognize a significant provision for the impairment of mortgage servicing rights.

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Our organizational documents may have the effect of discouraging a third party from acquiring us.

Our certificate of incorporation and bylaws contain provisions that make it more difficult for a third party to gain control or acquire us. These provisions also could discourage proxy contests and may make it more difficult for dissident stockholders to elect representatives as directors and take other corporate actions. These provisions of our governing documents may have the effect of delaying, deferring or preventing a transaction or a change in control that might be in the best interest of our stockholders.

We face risks with respect to future expansion.

We may acquire other financial institutions in the future and we may engage in de novo branch expansion. We may also consider and enter into new lines of business or offer new products or services. We may incur substantial costs to expand, and we can give no assurance such expansion will result in the levels of profits we seek. Also, we may issue equity securities in connection with future acquisitions, which would dilute current stockholders’ ownership interests. Regulatory agencies may not approve our application to acquire other financial institutions, branches or other lines of business, which would limit our growth opportunities.

Consumers may decide not to use banks to complete their financial transactions.

Technology and other changes are allowing parties to utilize alternative methods to complete financial transactions that historically have involved banks. For example, consumers can now maintain funds in brokerage accounts or mutual funds that would have historically been held as bank deposits. Consumers can also complete transactions such as paying bills and/or transferring funds directly without the assistance of banks. The process of eliminating banks as intermediaries could result in the loss of fee income, as well as the loss of customer deposits and the related income generated from those deposits. The loss of these revenue streams and the lower cost deposits as a source of funds could have a material adverse effect on our financial condition and results of operations.

Camco may be named as a defendant from time to time in a variety of litigation and other actions.

Camco or one of its subsidiaries may be named as a defendant from time to time in a variety of litigation arising in the ordinary course of their respective businesses. Such litigation is normally covered by errors and omissions or other appropriate insurance. However, significant litigation could cause Camco to devote substantial time and resources to defending its business or result in judgments or settlements that exceed insurance coverage, which could have a material adverse effect on Camco’s financial condition and results of operation. Further, any claims asserted against Camco, regardless of merit or eventual outcome, may harm Camco’s reputation and result in loss of business. In addition, Camco may not be able to obtain new or difference insurance coverage, or adequate replacement policies with acceptable terms.

Camco’s allowance for loan losses may be insufficient to cover future losses.

Camco maintains an allowance for loan losses to provide for probable, inherent and incurred loan losses at each balance sheet date based on our analysis of the loan portfolio. There can be no assurance on the timing or amount of actual loan losses or that charge-offs in future periods will not exceed the allowance for loan losses. In addition, federal and state regulators periodically review Camco’s allowance for loan losses as part of their examination process and may require management to increase the allowance or recognize further loan charge-offs based on judgments different than those of management. Any increase in the provision for loan losses would decrease Camco’s pretax and net income.

A material breach in Camco’s security systems may have a significant effect on Camco’s business and reputation.

Camco collects, processes and stores sensitive consumer data by utilizing computer systems and telecommunications networks operated by both Camco and third party service providers. Camco has security and backup and recovery systems in place, as well as a business continuity plan, to ensure the computer systems will not be inoperable, to the extent possible. Camco also has security to prevent unauthorized access to the computer systems and requires its third party service providers to maintain similar controls. However, management cannot be certain that these measures will be successful. A security breach of the computer systems and loss of confidential information, such as customer account numbers and related information, could result in a loss of customers’ confidence and, thus, loss of business.

17

Item 1B. Unresolved Staff Comments.

     None.

Item 2. Properties.

The following table provides the location of, and certain other information pertaining to, Camco’s office premises as of December 31, 2007, with dollars in thousands:

	Year facility		Leased	Net
	commenced		or	book
Office Location	operations		owned	value (1)
134 E. Court Street Washington Court House, Ohio		1963	Owned (2)	$	618.8
1050 Washington Ave. Washington Court House, Ohio		1996	Owned		492.3
1 N. Plum Street Germantown, Ohio		1998	Owned		487.5
687 West Main Street New Lebanon, Ohio		1998	Owned		61.7
2 East High Street London, Ohio		2004	Owned		567.0
3002 Harrison Avenue Cincinnati, Ohio		2000	Owned		1266.2
1111 St. Gregory Street Cincinnati, Ohio		2000	Leased (3)		43.3
5071 Glencrossing Way Cincinnati, Ohio		2000	Leased (4)		25.2
126 S. 9th Street Cambridge, Ohio		1998	Owned		80.4
226 Third Street Marietta, Ohio		1976	Owned (5)		583.3
1925 Washington Boulevard Belpre, Ohio		1979	Owned		68.9
478 Pike Street Marietta, Ohio		1998	Leased (6)		531.6
814 Wheeling Avenue Cambridge, Ohio		1963	Owned		1037.3
327 E. 3rd Street Uhrichsville, Ohio		1975	Owned		66.4
175 N. 11th Street Cambridge, Ohio		1981	Owned		343.5
209 Seneca Avenue Byesville, Ohio		1978	Leased (7)		0.0

18

	Year facility		Leased	Net
	commenced		or	book
Office Location	operations		owned	value (1)
547 S. James Street Dover, Ohio		2002	Owned		378.1
2497 Dixie Highway Ft. Mitchell, Kentucky		2001	Owned		566.1
401-7 Pike Street Covington, Kentucky		2001	Owned		92.2
3522 Dixie Highway Erlanger, Kentucky		2001	Owned		29.4
7550 Dixie Highway Florence, Kentucky		2001	Owned		442.2
6901 Glenn Highway Cambridge, Ohio		1999	Owned		1,180.5
100 E. Wilson Bridge Road — Suite #105 & 110 Worthington, Ohio		2004	Leased (8)		18.6
1500 Grand Central Ave.— Suite #102 Vienna, West Virginia		2004	Leased (9)		199.5
123 Southgate Parkway Cambridge, Ohio		2005	Leased (10)		64.0
6360 Tylersville Road Mason, Ohio		2006	Leased (11)		138.7
1104 Eagleton Blvd. London, Ohio		2006	Leased (12)		268.7
828 Wheeling Avenue Cambridge, Ohio		2007	Leased (13)		25.7

(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 in September 2008. Advantage has the option to renew for two five-year terms.
(9)	The lease expires in October 2013. Advantage has the option to renew for three five-year terms.
(10)	The lease expires in June 2012. Advantage has the option to purchase at a cost of $120,000.
(11)	The lease expires in October 2016. Advantage has the option to renew the lease for two five-year terms.
(12)	The lease expires in May 2011. Advantage has the option to renew for three five-year terms.
(13)	The lease expires in June 2009. Advantage has the option to renew for three one-year terms. Advantage has the option to purchase at a cost of $185,000 with a 3% escalation.

19

Camco also owns furniture, fixtures and equipment. The net book value of Camco’s investment in office premises and equipment totaled $12.9 million at December 31, 2007. See Note E of Notes to Consolidated Financial Statements in Camco’s 2007 Annual Report to Stockholders, which is filed as Exhibit 13 to this Form 10-K and is herein incorporated by reference.

Item 3. Legal Proceedings.

Neither Camco nor Advantage is presently engaged in any legal proceedings of a material nature. From time to time, Advantage is involved in legal proceedings to enforce its security interest in collateral taken as security for its loans.

Item 4. Submission of Matters to a Vote of Security Holders.

Not applicable.

PART II

Item 5. Market for Registrant’s Common Stock, Related Stockholder Matters and Issuer Purchases of Common Stock.

The information required by this Item 5 is contained under the sections “STOCK INFORMATION,” “ISSUER PURCHAES OF SECURITIES” and “PERFORMANCE GRAPH” in the 2007 Annual Report to Stockholders, which is filed as Exhibit 13 to this Form 10-K, and is incorporated herein by reference.

Item 6. Selected Consolidated Financial Data.

The information required by this Item 6 is contained under the section “SELECTED CONSOLIDATED FINANCIAL DATA” in the 2007 Annual Report to Stockholders, which is filed as Exhibit 13 to this Form 10-K, and is incorporated herein by reference.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The information required by this Item 7 is contained under the sections “MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS” and “LIQUIDITY AND CAPITAL RESOURCES” in the 2007 Annual Report to Stockholders, which is filed as Exhibit 13 to this Form 10-K, and is incorporated herein by reference.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

The information required by this Item 7A is contained under the section “QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK” in the 2007 Annual Report to Stockholders, which is filed as Exhibit 13 to this Form 10-K, and is incorporated herein by reference.

Item 8. Financial Statements and Supplementary Data.

The information required by this Item 8 is contained under the section “2007 ANNUAL REPORT — AUDITED FINANCIAL STATEMENTS AND MANAGEMENT’S DISCUSSION AND ANALYSIS” in the 2007 Annual Report to Stockholders, which is filed as Exhibit 13 to this Form 10-K, and is incorporated herein by reference.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

Not applicable.

20

Item 9A. Controls and Procedures.

     (a) Camco’s Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the disclosure controls and procedures (as defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended) as of December 31, 2007. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that Camco’s disclosure controls and procedures are effective.

     (b) Changes in internal control over financial reporting. There were no changes in Camco’s internal controls over financial reporting that occurred during the quarter ended December 31, 2007 that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.

     The information under the sections “MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING” and “ REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM” in the 2007 Annual Report to Stockholders, which is filed as Exhibit 13 to this Form 10-K, is incorporated herein by reference.

Item 9B. Other Information.

Not applicable

PART III

Item 10. Directors, Executive Officers and Corporate Governance.

     The information contained under the captions “Election of Directors,” “Incumbent Directors,” “Executive Officers,” “Board Meetings, Committees and Compensation” and “Section 16(a) Beneficial Ownership Reporting Compliance” in the Proxy Statement for the 2008 Annual Meeting of Stockholders to be filed by Camco on or about March 20, 2008 (“2008 Proxy Statement”), is incorporated herein by reference.

     Camco has adopted a Code of Ethics that applies to all directors and employees. The Code of Ethics is posted on Camco’s website at www.camcofinancial.com.

Item 11. Executive Compensation.

     The information contained in the 2008 Proxy Statement under the captions, “Compensation Discussion and Analysis,” “Compensation Committee Report,” and “Compensation of Executive Officers” is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

     The information contained in the 2008 Proxy Statement under the caption “Security Ownership of Certain Beneficial Owners and Management” is incorporated herein by reference.

     Camco maintains the Camco Financial Corporation 1995 Stock Option and Incentive Plan, the First Ashland Financial Corporation 1995 Stock Option and Incentive Plan, the Westwood Homestead Financial Corporation 1997 Stock Option Plan and the Camco Financial Corporation 2002 Equity Incentive Plan (collectively, the “Plans”) under which it may issue equity securities to its directors, officers and employees. Each of the Plans was approved by Camco’s stockholders.

     The following table shows, as of December 31, 2007, the number of common shares issuable upon the exercise of outstanding stock options, the weighted-average exercise price of those stock options, and the number of common shares remaining for future issuance under the Plans, excluding shares issuable upon exercise of outstanding stock options.

21

Equity Compensation Plan Information

					Number of securities
					remaining available for
	Number of securities				future issuance under
	to be issued upon		Weighted-average		equity compensation plans
	exercise of		exercise price of		(excluding securities
Plan Category	outstanding options		outstanding options		reflected in column (a))
Equity compensation plans approved by security holders		254,717	$	15.22		223,297

Item 13. Certain Relationships and Related Transactions, and Director Independence

     Advantage makes loans to executive officers and directors of Camco and its subsidiaries in the ordinary course of business and on the same terms and conditions, including interest rates and collateral, as those of comparable loans to other persons. All outstanding loans to executive officers and directors were made pursuant to such policy, do not involve more than the normal risk of collectability or present other unfavorable features and are current in their payments.

     The information required by this Item 13 is incorporated herein by reference to the 2008 Proxy Statement.

Item 14. Principal Accountant Fees and Services.

     The information contained in the 2008 Proxy Statement under the captions “Audit and Risk Management Committee Report” and “Audit Fees” is incorporated herein by reference.

22

PART IV

Item 15. Exhibits and Financial Statement Schedules.

     Exhibits.

3(i)	Certificate of Incorporation
3(ii)	Bylaws
4	Letter of Agreement to Furnish Copies of Long-term Debt Instruments and Agreements
10(i)	Employment Agreement between Camco and Richard C. Baylor
10(ii)	Form of 2002 Salary Continuation Agreement
10(iii)	Form of 1996 Salary Continuation Agreement
10(iv)	Form of Executive Deferred Compensation Agreement
10(v)	First Ashland Financial Corporation 1995 Stock Option and Incentive Plan
10(vi)	Incentive Stock Option Award Agreement Pursuant to the First Ashland Financial Corporation 1995 Stock Option and Incentive Plan
10(vii)	Non-Qualified Stock Option Award Agreement Pursuant to the First Ashland Financial Corporation 1995 Stock Option and Incentive Plan
10(viii)	Camco Financial Corporation 2002 Equity Incentive Plan
10(ix)	Incentive Stock Option Award Agreement Pursuant to the Camco Financial Corporation 2002 Equity and Incentive Plan
10(x)	Non-Qualified Stock Option Award Agreement Pursuant to the Camco Financial Corporation 2002 Equity and Incentive Plan
10(xi)	Camco Financial Corporation 1995 Stock Option and Incentive Plan
10(xii)	Westwood Homestead Financial Corporation 1997 Stock Option Plan
10(xiii)	Incentive Stock Option Award Agreement Pursuant to the Westwood Homestead Financial Corporation 1997 Stock Option Plan
10(xiv)	Non-Qualified Stock Option Award Agreement Pursuant to the Westwood Homestead Financial Corporation 1997 Stock Option Plan
10(xv)	Summary of Cash Bonus Plan
10(xvi)	Change of Control Agreement including Attachment A listing participants
11	Statement regarding computation of per share earnings
13	2007 Annual Report to Stockholders
14	Code of Ethics
21	Subsidiaries of Camco
23	Consent of Plante & Moran PLLC regarding Camco’s Consolidated Financial Statements and Form S-8
31(i)	Certification of Chief Executive Officer
31(ii)	Certification of Chief Financial Officer
32(i)	Certification of Chief Executive Officer
32(ii)	Certification of Chief Financial Officer

23

SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Camco Financial Corporation
By	/s/ Richard C. Baylor
	Richard C. Baylor,
	Chairman, President, Chief Executive Officer and a Director

     Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been duly signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By	/s/ Jeffrey T. Tucker	By	/s/ Paul D. Leake
	Jeffrey T. Tucker,		Paul D. Leake,
	Director		Director
Date: March 13, 2008		Date: March 13, 2008
By	/s/ Carson K. Miller	By	/s/ Terry A. Feick
	Carson K. Miller		Terry A. Feick,
	Director		Director
Date: March 13, 2008		Date: March 13, 2008
By	/s/ Edward D. Goodyear	By	/s/ Susan J. Insley
	Edward D. Goodyear,		Susan J. Insley,
	Director		Director
Date: March 13, 2008		Date: March 13, 2008
By	/s/ J. Timothy Young	By	/s/ Douglas F Mock
	J. Timothy Young		Douglas F. Mock
	Director		Director
Date: March13 , 2008		Date: March 13, 2008
By	/s/ Eric S. Nadeau	By	/s/ Andrew S. Dix
	Eric S. Nadeau,		Andrew S. Dix
	Chief Financial Officer		Director
Date: March 13, 2008		Date: March 13, 2008

INDEX TO EXHIBITS

ITEM	DESCRIPTION	DOCUMENT REFERENCE
Exhibit 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, 2003, Film no. 04668873 (“2003 Form 10-K”), Exhibit 3(i)
Exhibit 3(ii)	2003 Amended and Restated By-Laws of Camco Financial Corporation	Incorporated by reference to Camco’s Annual Annual Report on Form 10-K for the fiscal year ended December 31, 2006, Exhibit 3(ii)
Exhibit 4	Letter of Agreement to Furnish Copies of Long-term Debt Instruments and Agreements	Filed herewith
Exhibit 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)	Form of 2002 Salary Continuation Agreement, including individualized Schedule A’s for each participant	Incorporated by reference to Camco’s 2003 Form 10-K, Exhibit 10(iv)
Exhibit 10(iii)	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(iv)	Form of Executive Deferred Compensation Agreement	Incorporated by reference to Camco’s 2003 Form 10-K, Exhibit 10(vi)
Exhibit 10(v)	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 4.01
Exhibit 10(vi)	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(vii)	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(viii)	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 4.01
Exhibit 10(ix)	Incentive Stock Option Award Agreement Pursuant to the Camco Financial Corporation 2002 Equity and Incentive Plan	Incorporated by reference to Camco’s Form 8-K filed on February 2, 2005, film no. 05570393 (“2005 8-K”), Exhibit 10.5

INDEX TO EXHIBITS (continued)

ITEM	DESCRIPTION	DOCUMENT REFERENCE
Exhibit 10(x)	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)
Exhibit 10(xi)	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 4.01
Exhibit 10(xii)	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 4.01
Exhibit 10(xiii)	Incentive Stock Option Award Agreement Pursuant to the Westwood Homestead Financial Corporation 1997 Stock Option Plan	Incorporated by reference to the 2005 8-K, Exhibit 10.4
Exhibit 10(xiv)	Non-Qualified Stock Option Award Agreement Pursuant to the Westwood Homestead Financial Corporation 1997 Stock Option Plan	Incorporated by reference to the 2005 8-K, Exhibit 10.3
Exhibit 10(xv)	Summary of Bonus Plan	Filed herewith
Exhibit 10(xvi)	Change of Control Agreement including Attachment A listing participants	Filed herewith
Exhibit 11	Statement regarding computation of per share earnings	Incorporated by reference to Camco’s 2007 Annual Report to Stockholders, filed herewith as Exhibit 13
Exhibit 13	2007 Annual Report to Stockholders	Filed herewith
Exhibit 14	Code of Ethics	Camco elects to satisfy Regulation S-K §229.406(c) by posting its Code of Ethics on its website at www.camcofinancial.com
Exhibit 21	Subsidiaries of Camco	Incorporated by reference to Camco’s 2003 Form 10-K, Exhibit 21
Exhibit 23	Consent of Plante & Moran PLLC regarding Camco’s Consolidated Financial Statements and Form S-8	Filed herewith
Exhibit 31(i)	Section 302 Certification by Chief Executive Officer	Filed herewith
Exhibit 31(ii)	Section 302 Certification by Chief Financial Officer	Filed herewith
Exhibit 32(i)	Section 1350 Certification by Chief Executive Officer	Filed herewith
Exhibit 32(ii)	Section 1350 Certification by Chief Financial Officer	Filed herewith

EX-4

Exhibit 4

Camco Financial Corporation

6901 Glenn Highway
Cambridge, Ohio 43725
Phone: 740-435-2020
Fax: 740-435-2021

March 17, 2008

Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549

Re: Camco Financial Corporation — Annual Report on Form 10-K
for the Fiscal Year Ended December 31, 2007

Ladies and Gentlemen:

          Today, Camco Financial Corp., a Delaware corporation (“Camco”), is filing its Annual Report on Form 10-K for the fiscal year ended December 31, 2007 (the “Form 10-K”), with the Securities and Exchange Commission (the “SEC”).

          Pursuant to the instructions relating to the Exhibits in Item 601(b)(4)(iii) of Regulation S-K, Camco hereby agrees to furnish the SEC, upon request, copies of instruments and agreements, defining the rights of holders of Camco’s long-term debt and of the long-term debt of its consolidated subsidiaries, which are not being filed as exhibits to the Form 10-K. The total amount of securities issued under any instrument of such long-term debt does not exceed 10% of the total assets of Camco and its subsidiaries on a consolidated basis.

Very truly yours,

CAMCO FINANCIAL CORPORATION

Eric S. Nadeau
Chief Financial Officer

EX-10.15

EXHIBIT 10(xv)

Summary of Bonus Plan

Camco Financial Corporation (“Camco”) maintains both a short-term cash bonus plan and a long-term stock-based incentive plan. Bonus and incentive plan awards for executive officers of Camco and its subsidiaries are based on the achievement of corporate performance objectives which are established annually by Camco’s Compensation Committee at the beginning of each year. Currently, the performance objectives consist of minimum thresholds that must be met under the following performance measures before cash or equity incentives will be paid to the Named Executive Officers, regardless of the results of the other performance measurements: nonperforming loans as percent of assets, liquidity, deposit growth, earnings per share, business loan growth and relationship building (products and services per customer). The individual objectives are then weighted as to value each year, with the most important goals having heavier weightings as decided by management and the Board of Directors.

Currently, the cash bonus amounts range from 15% to 20% of the Chief Executive Officer’s base salary and 15% to 20% of other executive officers’ base salaries, subject to the percentage of performance measurements achieved. Additional discretionary bonus amounts may also be awarded under the cash bonus plan in recognition of other achievements, such as merger and acquisition activities, which are not part of the established performance objectives.

The long-term incentive plan provides for the award of stock options of varying levels for each of the executive officers, ranging in amount from 0% to a maximum of 100% of the officer’s base salary, subject to the percentage of performance measurements achieved. Options are issued at market prices, have a term of ten years, and typically vest at a rate of 20% each year beginning on the grant date. This element of the executive compensation program is designed to align the interests of the executive with corporate stockholder objectives since the price performance of Camco’s common stock directly affects the value of these long-term awards.

EX-10.16

EXHIBIT 10(xvi)

CHANGE OF CONTROL AGREEMENT
[2X]

     THIS CHANGE OF CONTROL AGREEMENT (this “Agreement”) is entered into as of the               day of                                         , 2001, by and between Camco Financial Corporation, a Delaware corporation (“Camco”), and                                           (the “Employee”);

WITNESSETH:

     WHEREAS, the Employee has been employed as the                                          of Advantage Bank (the “Bank”), a wholly-owned subsidiary of Camco;

     WHEREAS, as a result of the skill, knowledge and experience of the Employee, Camco believes it is in the best interest of Camco and its stockholders to provide the Employee with a sense of security and fair treatment to encourage the Employee to remain an employee of Camco;

     WHEREAS, Camco and the Employee desire to enter into this Agreement to set forth their understanding as to their respective rights and obligations in the event of the termination of Employee’s employment under the circumstances set forth in this Agreement.

     NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, Camco and the Employee hereby agree as follows:

     1. Term. The term of this Agreement shall commence on _________, 2001, and shall end December 31, 2001, subject to extension and to earlier termination as provided herein (the “Term”). Prior to each anniversary of the date of this Agreement, the Board of Directors of Camco shall review the performance of the Employee. In connection with such annual review, the Term of this Agreement shall be extended for a one-year period beyond the then-effective expiration date, provided the Board of Directors of Camco, in its sole discretion, determines in a duly adopted resolution that this Agreement should be extended.

     2. Termination of Employment.

     (a) Termination by Camco in Connection with a Change of Control. In the event that the employment of the Employee is terminated by Camco, the Bank or their respective successors or assigns, during the Term for any reason other than Just Cause within six months prior to a Change of Control (hereinafter defined) or within one year after a Change of Control, then the following shall occur:

     (i) Camco shall promptly pay to the Employee or to his beneficiaries, dependents or estate an amount equal to two times the amount of the Employee’s annual compensation as most recently set prior to the occurrence of the Change of Control;

     (ii) The Employer shall pay the premiums required to maintain coverage for the Employee and his eligible dependents under the health insurance plan of Camco or the Bank in which the Employee is a participant immediately prior to the Change of Control in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, until the earliest of (A) the second anniversary of the termination of the Employee’s employment or (B) the date on which the Employee is included in another employer’s benefit plans as a full-time employee; and

     (iii) The Employee shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, nor shall any amounts

received from other employment or otherwise by the Employee offset in any manner the obligations of Camco hereunder, except as specifically stated in subparagraph (b).

     For purposes of this Agreement, the term “Just Cause” means the Employee’s personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure or refusal to perform the duties and responsibilities assigned in this Agreement, willful violation of any law, rule, regulation (other than traffic violations or similar offenses) or final cease-and-desist order, conviction of a felony or for fraud or embezzlement, or material breach of any provision of this Agreement.

     (b) Termination by the Employee in Connection with a Change of Control. The Employee may voluntarily terminate his employment pursuant to this Agreement within twelve months following a Change of Control and shall be entitled to compensation as set forth in Section 2(a) of this Agreement in the event that:

     (i) the present capacity or circumstances in which the Employee is employed immediately prior to the completion of the Change of Control are changed, in the opinion of the Employee (including, without limitation, a reduction in responsibilities or authority or a reduction in salary);

     (ii) the Employee is required to move his personal residence, or perform his principal executive functions, more than thirty-five (35) miles from his primary office as of the date of the commencement of the Term of this Agreement; or

     (iii) Camco otherwise breaches this Agreement in any material respect.

In the event that payments pursuant to this Section 2 would result in the imposition of a penalty tax pursuant to Section 280G(b)(3) of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (“Section 280G”), such payments shall be reduced to the maximum amount which may be paid under Section 280G without exceeding such limits. In the event a reduction in payments is necessary in order to comply with the requirements of this Agreement relating to the limitations of Section 280G or applicable regulatory limits, the Employee may determine, in his sole discretion, which categories of payments are to be reduced or eliminated.

     (c) Death of the Employee. This Agreement shall automatically terminate upon the death of the Employee.

     (d) “Golden Parachute” Provision. Any payments made to the Employee pursuant to this Agreement or otherwise are subject to and conditioned upon their compliance with 12 U.S.C. §1828(k) and any regulations promulgated thereunder.

     (e) Definition of “Change of Control”. A “Change of Control” shall mean any one of the following events: (i) the acquisition of ownership or power to vote more than 25% of the voting stock of Camco; (ii) the acquisition of the ability to control the election of a majority of the directors of Camco; (iii) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors of Camco, cease for any reason to constitute at least a majority thereof; provided, however, that any individual whose election or nomination for election as a member of the Board of Directors of Camco was approved by a vote of at least two-thirds of the directors then in office shall be considered to have continued to be a member of the Board of Directors of Camco; or (iv) the acquisition by any person or entity of “conclusive control” of Camco within the meaning of 12 C.F.R. §574.4(a), or the acquisition by any person or entity of “rebuttable control” within the meaning of 12 C.F.R. §574.4(b) that has not been rebutted in accordance with 12 C.F.R. §574.4(c). For purposes of this paragraph, the term “person” refers to an individual or corporation, partnership, trust, association, or other organization, but does not include the Employee and any person or persons with whom the Employee is “acting in concert” within the meaning of 12 C.F.R. Part 574. The occurrence of any of the foregoing events with respect to the Bank shall not constitute a Change of Control for purposes of this Agreement.

     3. Confidential Information. The Employee acknowledges that during his employment he will learn and have access to confidential information regarding Camco and its customers and businesses. The Employee agrees and covenants not to disclose or use for his own benefit, or the benefit of any other person or entity, any confidential information, unless or until Camco consents to such disclosure or use or such information becomes common knowledge in the industry or is otherwise legally in the public domain. The Employee shall not knowingly disclose or reveal to any unauthorized person any confidential information relating to Camco, its parent, subsidiaries or affiliates, or to any of the businesses operated by them, and the Employee confirms that such information constitutes the exclusive property of Camco. The Employee shall not otherwise knowingly act or conduct himself (a) to the material detriment of Camco, its subsidiaries, or affiliates, or (b) in a manner which is inimical or contrary to the interests of Camco.

     4. Nonassignability. Neither this Agreement nor any right or interest hereunder shall be assignable by the Employee, his beneficiaries or his legal representatives without Camco’s prior written consent; provided, however, that nothing in this Section 4 shall preclude (a) the Employee from designating a beneficiary to receive any benefits payable hereunder upon his death, or (b) the executors, administrators, or other legal representatives of the Employee or his estate from assigning any rights hereunder to the person or persons entitled thereto.

     5. No Attachment. Except as required by law, no right to receive payment under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or to execution, attachment, levy, or similar process of assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect.

     6. Binding Agreement. This Agreement shall be binding upon, and inure to the benefit of, the Employee and Camco and their respective permitted successors and assigns.

     7. Amendment of Agreement. This Agreement may not be modified or amended, except by an instrument in writing signed by the parties hereto.

     8. Waiver. No term or condition of this Agreement shall be deemed to have been waived, nor shall there be an estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver, unless specifically stated therein, and each waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than the act specifically waived.

     9. Severability. If, for any reason, any provision of this Agreement is held invalid, such invalidity shall not affect the other provisions of this Agreement not held so invalid, and each such other provision shall, to the full extent consistent with applicable law, continue in full force and effect.

     10. Headings. The headings of the paragraphs herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.

     11. Governing Law; Regulatory Authority. This Agreement has been executed and delivered in the State of Ohio and its validity, interpretation, performance and enforcement shall be governed by the laws of the State of Ohio, except to the extent that federal law is governing. If this Agreement conflicts with any applicable federal law as now or hereafter in effect, then federal law shall govern.

     12. Effect of Prior Agreements. This Agreement contains the entire understanding between the parties hereto and supersedes any prior employment agreement between Camco or any predecessor of Camco and the Employee.

     13. Notices. Any notice or other communication required or permitted pursuant to this Agreement shall be deemed delivered if such notice or communication is in writing and is delivered personally or by facsimile transmission or is deposited in the United States mail, postage prepaid, addressed as follows:

If to Camco:

Camco Financial Corporation
6901 Glenn Highway
Cambridge, Ohio 43725-9757
Attention: Mr. Richard A. Baylor

If to the Employee:

     IN WITNESS WHEREOF, Camco has caused this Agreement to be executed by its duly authorized officer, and the Employee has signed this Agreement, each as of the day and year first above written.

Attest:	CAMCO FINANCIAL CORPORATION
	By
		Richard A. Baylor
		President & CEO
	EMPLOYEE

Attachment A

Each of the enrollees are listed below:

Kemper C. Allison
David S. Caldwell
Eric S. Nadeau
D. Edward Rugg
Edward A. Wright

EX-13

2007 Annul Repot
One Team, Building Relationships, Providing Solutions.

Camco Financial Corporation

TABLE OF CONTENTS

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

One Team, Building Relationships, Providing Solutions.

Working together toward shared goals.

With the right processes and procedures in place, it is possible for an organization of individuals with unique skills and talents to work as one. At Advantage Bank, we have developed and implemented a comprehensive approach to maintain our focus on key goals and objectives.

It begins with standardized training modules that are applied throughout the company. A complete training calendar is available to all employees, as well as customized, yet consistent, training to meet individual needs.

A thorough internal communication system also plays a key role in achieving common goals. In addition to company-wide bulletins, schedules and calendars, a monthly message from the president reaches every employee. The information shared in the president’s message serves as an important touch point and brings perspective and clarity to what we are trying to achieve on a daily basis.

Collaboration is part of our culture and has always been an important component of our One Team concept. Management and employees at all levels work together to achieve the best possible results. In fact, it is standard practice for employees to visit markets and banking offices other than their own to offer fresh perspectives and strengthen best practices. In addition, we form cross-functional teams to develop new processes and procedures to ensure all voices are heard.

Collaboration also extends beyond internal boundaries, as we invite our customers to join us and work side-by-side with us on community service projects, including Habitat for Humanity and Relay For Life. We believe this collaborative approach not only strengthens our team, but helps us build long-lasting customer relationships.

“My business card says I work for Advantage Bank, but really, I work for our customers. We ask our customers to tell us what we can do to improve their experience with Advantage Bank. Their input helps us to develop new and unique ideas for delivering financial solutions to meet their needs. “

Rick Baylor

Every customer is our top priority.

As a community bank, we are keenly aware that the relationships we build with our customers are vital to our future success. While many aspects of our relationship building are simply the result of good people who truly care about their customers, there is also a structured component to how we go about building long lasting relationships.

We make every effort to gain a full understanding of the needs of our customers by asking the right questions on an ongoing basis. By maintaining a relationship with each one of our customers, we are in a position to recommend the appropriate financial products and services based on their current, yet ever changing needs.

Of course, we understand that relationships are about more than people. Competitive and contemporary financial products are also a key component to maintaining long-term customers. So we develop meaningful financial products designed to meet customer needs and offer special product pricing incentives for customers with multiple accounts.

Naturally, every successful relationship is built on trust. So we strive to become trusted advisors for our customers by providing sound advice and guidance. When customers know they can count on you, they look to you time and time again. That’s how relationships are built. And that’s how we will continue to build success.

PROVIDING SOLUTIONS.

Our goal is helping our customers reach theirs.

There are two key components to providing customers with quality solutions. Knowledgeable people and a comprehensive product suite. At Advantage Bank, we are fortunate to have both.

We are not in the business of selling banking products to our customers. Rather, our business is all about getting to know our customers, so we can provide them with solutions that will help them reach their goals.

It begins with thorough product understanding. Our associates have the benefit of a training program that helps them connect product features and benefits to customer needs. We don’t just emphasize how our products work, we emphasize what our products can do.

With this knowledge in place, conversations become much more productive. We ask the appropriate questions to uncover our customers’ true needs. Then we follow through on a regular basis to ensure those needs are being met.

The One Team concept, relationship building and working to provide solutions are all interrelated. Together, these key initiatives provide the foundation for our future success.

FINANCIAL HIGHLIGHTS

PER SHARE:	2007		2006		2005		2004			2003
Net Earnings — Diluted+	$	0.61	$	0.78	$	1.15	$	(0.34	)	$	0.92
Net Earnings — Diluted+	$	0.61	$	0.78	$	1.15	$	0.79		$	1.03
- Operations
Tangible 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	$	1,039,151
Loans Receivable Net *	$	815,271	$	821,818	$	841,737	$	829,713	$	804,981
Investments and MBS	$	91,688	$	110,955	$	113,690	$	108,429	$	113,758
Deposits	$	692,184	$	684,782	$	660,242	$	667,778	$	671,274
Federal Home Loan	$	220,981	$	257,139	$	307,223	$	295,310	$	262,735
Bank Advances & Borrowings

RATIOS:	2007			2006			2005			2004			2003
ROATE		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/Loans
Non-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

MARKET FOOTPRINT
OHIO
Belpre
Byesville
Cambridge
Downtown
N. 11th St.
Cincinnati
Westwood
Glencrossing
Mason
Mt. Adams
Dover
Germantown

London
Downtown
Eagleton Center
marietta
Downtown
Lafayette Center
New Lebanon
Uhrichsville
Washington Court House
Downtown
Washington Ave.
Worthington

KENTUCKY
Covington
Florence
Ft. mitchell
WEST Virginia
vienna

Corporate Headquarters
Banking Offices
Title Offices

Camco Financial Corporation, Holding Company of Advantage Bank, is a multi-state financial services Holding Company headquartered in Cambridge, Ohio. Advantage Bank and its affiliate, Camco Title Agency, offer relationship banking that includes commercial, small business and consumer financial services, internet banking and title insurance services from 28 offices in Ohio, Kentucky and West Virginia.

BOARD OF DIRECTORS

FRONT ROW — LEFT TO RIGHT:

Susan J. Insley, Lead Director, Retired EVP,

Cochran Group inc. (2, 3, 5)

Richard C. Baylor, Chairman / CEO / President,

Camco Financial Corporation (4, 5)

Robert C. Dix, Jr., Publisher, The Daily Jeffersonian (1, 3)

Jeffrey T. Tucker, CPA & Partner, Tucker & Tucker (1, 4, 5)

Dr. Samuel W. Speck, Director, Ohio Department of Natural Resources

2007 COMMITTEES

(1) Audit & Risk Management Committee:
Jeffrey T. Tucker, Chair

(2) Compensation Committee:
Terry A. Feick Chair

(3) Corporate Governance and Nominating Committee:
Susan J. Insley, Chair

(4) Executive Loan Committee:
Carson K. Miller, Chair

(5) Executive Committee:
Richard C. Baylor, Chair

BACK ROW — LEFT TO RIGHT:

Paul D. Leake, retired President / CEO, First Federal bank for Savings (4)
Terry A. Feick, retired Superintendent, Washington Court House City Schools (2, 3, 5)
Carson K. Miller, retired President, Washington State Community College (2, 4)
J. Timothy Young, Senior Vice President, Hamilton Capital management, Inc. (1, 3)
Edward D. Goodyear, Treasurer, The Dispatch Printing Company (1)
Douglas F. Mock, President, Mock Woodworking Company (2, 4)

BOARD RETIREMENTS

Dr. Samuel W. Speck

Retired from the board on January 23, 2007.
Sam joined the Camco Financial Board of Directors in 1991, serving for 16 years. He is a former Ohio State Representative and State Senator. He served
as president of Muskingum College in New Concord, Ohio for 11 years and recently retired as the
Director of the Ohio Department of Natural Resources.

Robert C. Dix, Jr.

Retired from the board on December 7, 2007.

Bob was a member of the Camco Financial board of directors for 13 years. He recently retired as
publisher of the Daily Jeffersonian and as Chairman of the Board of Dix Communications in
Cambridge, Ohio. He continues to serve on the Board of Directors of Dix Communications, which
operates newspapers in Ohio and Kentucky as well as radio stations in Florida, Maryland and Ohio.
He also serves on the Sun-Journal Newspapers Board of Directors in Lewiston, Maine.

SENIOR MANAGEMENT

BOARD ADDITIONS

Andrew S. Dix named to the board on December 7, 2007
Since 2006 Andrew S. dix has been the publisher of the
daily & Sunday Jeffersonian and vice president of dix
Communications which operates seven daily newspapers and
25 weekly newspapers in Ohio and Kentucky and nine radio
stations in Florida, Maryland and Ohio.

RICHARD C. BAYLOR
CHAIRMAN / CEO / President

ERIC S. NADEAU
SVP / CFO / TREASURER

EDWARD A. WRIGHT
SVP / OPERATIONS

JAMES W . CHUGG
VP / Human RESOURCES

D. EDWARD RUGG
EVP / CHIEF Credit OFFICER

DAVID S. CALDWELL
SVP / RETAIL BANKING

KEMPER C. ALLISON
SVP / SENIOR LENDING OFFICER

LETTER TO STOCKHOLDERS

Dear Fellow Stockholders,

Camco Financial Corporation (“Camco”) reported net earnings for the year 2007 of $4.50 million or $0.61 per share as compared with net earnings of $5.87 million or $0.78 per share for the year 2006. The decrease in earnings was mainly caused by the deteriorating credit quality throughout the Midwest as real estate related loans were adversely affected with slower property sales, higher foreclosure and bankruptcy flings and higher unemployment throughout our operating footprint. We prudently adjusted our credit standards during the year to be more cautious lenders in what has quickly become a distressed economic environment. Additionally, our net interest margin contracted from 3.16% in the fourth quarter, 2006 to 2.94% in the fourth quarter, 2007 due to continued competition with other banks to attract deposits, and thus our net interest income declined as well during the year.

2007 has been the proverbial roller coaster ride. We began 2007 with growth in loans and deposits, only to see both diminish as economic turmoil surfaced in the second half of the year. What a change the last six months of 2007 had on Midwest banking, due not only to continuing economic challenges in Ohio but also to the ongoing fallout from the subprime lending debacle that certainly has burst the housing bubble. That the economic picture in our markets, already weakened in recent years by job losses, could be worsened by the subprime lending practices mainly of Wall Street frms, certainly wasn’t what we foresaw coming into 2007. Ohio currently ranks third in the country in the number of foreclosures and these numbers are increasing. Regrettably, our bank — and others — may well suffer from this circumstance into 2008 and possibly 2009 as foreclosures continue on properties in an effort to recover dollars loaned. These issues and the associated costs they carry have depressed banks’ earnings and stock prices.

Publicly traded Ohio banks have seen their stock prices fall an average of 42% by year end 2007 from year end 2006. Camco’s stock price fell 13% during that same time period. Our financial results for 2007 reflect our economic environment and were very disappointing.

We did not stand still in 2007 as we began to experience that “roller coaster” ride. In the second quarter of 2007, we undertook a thorough review of our operations to determine where we could make changes to reduce costs or increase revenues. Generally, we have controlled operating costs well in the past and have compared favorably to other banks, but we know it is important to make continuous improvement in operating efficiencies. We identified about $750,000 of pretax profit from revenue enhancing or cost reduction initiatives that should help our bottom-line for 2008.

These initiatives included:

• 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.

We continued to work hard to achieve other improvements, even as the 2007 environment toughened:

• 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.

Your Board of Directors remains committed to building stockholder value. To that end, in 2007 the Board approved a continuation of our Stock Repurchase program to enhance the value of stockholders. We also added a new director, Andrew S. Dix. Mr. Dix is publisher of the Daily Jeffersonian newspaper in Cambridge, Ohio and brings experience in the communications industry. We believe that adding involved community leaders with necessary skills to the Board creates value for our bank now and in the future. We would like to offer our gratitude and appreciation to two retired directors. Dr. Samuel W. Speck and Robert C. Dix, Jr. retired from our Board in 2007, and after serving 16 years and 13 years respectively, we would recognize here that their service and leadership served Camco well.

We must be realistic about 2008. The subprime lending issue will continue to negatively affect our economy and real estate markets for some time to come. Increases in foreclosed real estate on top of an already overstocked real estate market will add excess supply and hold real estate values down until the excess is absorbed. The quantity of new loan volume has been reduced in Advantage Bank’s markets, which will impede earnings growth. Our commercial loan portfolio, secured primarily by real estate, experienced a steady increase in delinquency in 2007, with some foreclosures and losses. We have identified and are working closely with those loan customers to seek workout initiatives and find solutions that reduce losses whenever possible. Our net charge-offs on loans in 2007 was a manageable ..24% of average net loans outstanding versus .15% for 2006. We have historically demonstrated our ability to mitigate losses, but in 2008 we anticipate higher than historical losses as we work through this very tough business cycle, although we feel we are adequately reserved against those potential losses.

Our overall loan delinquencies are at a level that is historically high. In large part, this is due to loans made appropriately to good customers but which customers’ circumstances have now changed. We are very much aware that the region in which we operate is currently experiencing a strained economy. The reasons for the economic strains are many and include the indirect effect of the various subprime lending programs that were operated in the United States by some lenders other than Advantage Bank.

Although we have not yet seen evidence that the economic downturn in real estate has run its course, we know that eventually it will improve. We will mitigate the bumpy ride as much as possible by sticking to our knitting and not reaching for results using high risk tactics. Instead, we will continue to manage the things we can — such as overhead, prudent lending and excellence in customer service. Every one of us would like to show better results for our work. We remain hopeful and are committed to achieving better results for our stockholders.

I am confident in our team’s ability to build strong banking relationships, which will increase the number of customers and subsequent profits for Camco Financial Corporation. In fact, our employees’ collective commitment to working as One Team, Building Relationships and Providing Solutions, bolsters the dedication needed for attaining and sustaining growth.

Thank you for your investment in Camco Financial Corporation, and I hope you will continue to refer people you know to our people at Advantage Bank.

Sincerely,

/s/ Richard C. Baylor
Richard C. Baylor

Chairman, Chief Executive Officer and President

Advantage Bank is a Member FDIC and an Equal Housing Lender.

STOCKHOLDER INFORMATION
QUESTIONS OR INFORMATION
Questions or inquiries regarding Camco Financial Corporation should be directed to:

Richard C. Baylor, Chairman / CEO / President
Camco Financial Corporation
6901 Glenn Highway
Cambridge, Ohio 43725
740-435-2020
E-mail: schorey@advantagebank.com

TRANSFER AGENT AND REGISTRAR

Communications regarding change of address, transfer of shares, lost
certificates and dividends should be directed to:

Registrar and Transfer Company
10 Commerce Drive
Cranford, New Jersey 07016-3572
800-368-5948

ANNUAL REPORT ON FORM 10-K

The Camco Financial Corporation Annual Report on Form 10-K filed with
the Securities and Exchange Commission and the Code of Ethics are available on Camco’s website or
free of charge upon written request directed to:

Camco Financial Corporation
Eric S. Nadeau
Chief Financial Officer
6901 Glenn Highway
Cambridge, Ohio 43725
740-435-2055
Fax: 740-435-2021
E-mail: ir@advantagebank.com

ANNUAL MEETING

Stockholders are cordially invited to attend the
Annual Meeting of Stockholders of Camco Financial
Corporation which will be held on Tuesday, April 22, 2008
at 3:00 PM Eastern Daylight Time at the Corporate
Headquarters, 6901 Glenn Highway, Cambridge, Ohio.

NASDAQ SYMBOL — CAFI

Internet Home Page Address: www.camcofinancial.com

CAMCO’S DIVIDEND REINVESTMENT PLAN Camco has arranged with its transfer agent, Registrar and
Transfer Company, to offer record holders of Camco common stock an opportunity to participate in
Camco’s Dividend Reinvestment Plan, which includes a Voluntary Cash Contribution Feature (the
“Plan”).

The Plan provides a flexible and convenient way to increase your ownership in Camco through the
investment of either part or all of your dividends in shares of Camco common stock or through
optional cash purchases of shares of Camco common stock.

If your shares in Camco common stock are not held in your name but are held by a broker or nominee
and you wish to participate in the Plan, the ownership of your shares must be transferred into your
name. Your broker or nominee will have to make such a transfer on your behalf before you may
complete the Authorization Card to enroll in the Plan. You may request an Authorization Card by
contacting Camco at 6901 Glenn Highway, Cambridge, Ohio 43725.

Your participation in the dividend reinvestment portion of the Plan will begin with the next cash
dividend payable after receipt of your completed Authorization Card, provided it is received at
least five (5) days before the record date for the dividend. Voluntary cash contributions can be
made immediately upon Registrar and Transfer Company’s receipt of your completed Authorization
Card.

You may withdraw from the Plan and rejoin at a later time as long as you
are a Camco stockholder.

Camco Financial Corporation

6901 Glenn Highway • Cambridge, Ohio 43725

2007 ANNUAL REPORT
Audited Financial Statements and Management’s Discussion and Analysis
Camco Financial Corporation

SELECTED CONSOLIDATED FINANCIAL DATA

The following tables set forth certain information concerning the consolidated financial position and results of operations of Camco for the periods indicated. This selected consolidated financial data should be read in conjunction with the consolidated financial statements appearing elsewhere in this report.

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	$	1,039,151
Interest-bearing deposits in other financial institutions		5,432		12,673		11,299		17,045		30,904
Securities available for sale – at market		88,919		107,506		109,514		100,160		104,924
Securities held to maturity		2,769		3,449		4,176		8,269		8,834
Loans receivable – net (2)		815,271		821,818		841,737		829,713		804,981
Deposits		692,184		684,782		660,242		667,778		671,274
FHLB advances and other borrowings		220,981		257,139		307,223		295,310		262,735
Stockholders’ 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		$	54,875
Total interest expense		36,421		32,771		26,529		27,512			31,327
Net interest income		28,896		29,918		30,549		25,436			23,638
Provision for losses on loans		1,495		1,440		1,480		1,620			1,446
Net interest income after provision for losses on loans		27,401		28,478		29,069		23,816			22,192
Other income		5,850		5,033		6,584		7,082			11,411
Sale of branch deposits and premises, net		—		—		8		6,626			—
General, administrative and other expense		26,985		24,910		22,754		22,841			22,404
FHLB advance prepayment fees		—		—		—		18,879			1,292
Earnings (loss) before federal income taxes (credits)		6,266		8,601		12,907		(4,196	)		9,907
Federal income taxes (credits)		1,765		2,727		4,141		(1,660	)		3,051
Net earnings (loss)		4,501		5,874		8,766		(2,536	)		6,856
Prepayment fees, restructuring charges (credits) and gain on sale of Ashland branches (net of related tax effects)		—		—		—		8,440			853
Net earnings from operations	$	4,501	$	5,874	$	8,766	$	5,904		$	7,709

1

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	)	$	.92
Basic from operations (3)	$	.61		$	.78		$	1.15		$	.79		$	1.03
Diluted	$	.61		$	.78		$	1.15			N/A		$	.91
Diluted from operations (3)	$	.61		$	.78		$	1.15		$	.79		$	1.02
Dividends declared per share	$	.60		$	.60		$	.58		$	.58		$	.57
Return 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			0.73
Return on average equity (4)		4.98			6.46			9.73			(2.79	)		7.17
Return on average equity from operations (4)		4.98			6.46			9.73			6.49			8.07
Average equity to average assets (4)		8.67			8.58			8.43			8.64			9.01
Dividend 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

Camco Financial Corporation (“Camco”) is a financial holding company that was organized under Delaware law in 1970. Camco is engaged in the financial services business in Ohio, Kentucky and West Virginia, through its wholly-owned subsidiaries, Advantage Bank and Camco Title Agency, Inc. In June 2001, Camco completed a reorganization in which it combined its banking activities under one Ohio savings bank charter known as Advantage Bank (“Advantage” or the “Bank”). Prior to the reorganization, Camco operated five separate banking subsidiaries serving distinct geographic areas. The branch office groups in each of the regions previously served by the five subsidiary banks now operate as regions of Advantage. In 2003, Camco dissolved its second tier subsidiary, Camco Mortgage Corporation, and converted its offices into branch offices of the Bank. In August 2004, Camco completed a business combination with London Financial Corporation of London, Ohio, and its wholly-owned subsidiary, The Citizens Bank of London. The acquisition was accounted for using the purchase method of accounting and, therefore, the financial statements for prior periods have not been restated. At the time of the merger, Advantage Bank merged into The Citizens Bank of London and changed the name of the resulting institution to Advantage Bank. As a result, Camco’s subsidiary financial institution is now an Ohio-chartered commercial bank instead of an Ohio savings bank. Further, Camco converted from an OTS regulated thrift holding company to a financial holding company regulated by the Federal Reserve Board.

In December 2004, Advantage sold its Ashland, Kentucky division, consisting of two branches.

Advantage is primarily regulated by the State of Ohio Department of Commerce, Division of Financial Institutions (the “Division”), and the Federal Deposit Insurance Corporation (the “FDIC”). Advantage is a member of the Federal Home Loan Bank (the “FHLB”) of Cincinnati, and its deposit accounts are insured up to applicable limits by the Deposit Insurance Fund (the “DIF”) administered by the FDIC. Camco is regulated by the Federal Reserve Board.

Advantage’s lending activities include the origination of commercial real estate and business loans, consumer, and residential conventional fixed-rate and variable-rate mortgage loans for the acquisition, construction or refinancing of single-family homes located in Camco’s primary market areas. Camco also originates construction and permanent mortgage loans on condominiums, two- to four-family, multi-family (over four units) and nonresidential properties. Camco continues to diversify the balance sheet through increasing commercial, commercial real estate, and consumer loan portfolios as well as checking and money market deposit accounts.

The financial statements for Camco and its subsidiaries are prepared on a consolidated basis. The principal source of revenue for Camco on an unconsolidated basis has historically been dividends from the Bank. Payment of dividends to Camco by the Bank is subject to various regulatory restrictions and tax considerations.

References in this report to various aspects of the business, operations and financial condition of Camco may be limited to Advantage, as the context requires.

Camco’s Internet site, http://www.camcofinancial.com, provides Camco’s annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 free of charge as soon as reasonably practicable after Camco has filed the report with the Securities and Exchange Commission.

3

STOCK INFORMATION

At January 31, 2008, Camco had 7,155,595 shares of common stock outstanding with approximately 1,827 holders of record. Camco’s common stock is listed on The Nasdaq Global Market (“Nasdaq”) under the symbol “CAFI.” The table below sets forth the high and low daily closing price for the common stock of Camco, together with the dividends declared per share of common stock, for each quarter of 2007 and 2006.

					Cash
					dividends
	High		Low		declared
Year ended December 31, 2007
Quarter ending:
December 31, 2007	$	13.50	$	11.05	$	0.150
September 30, 2007		13.50		12.62		0.150
June 30, 2007		12.80		12.10		0.150
March 31, 2007		12.84		12.20		0.150
Year ended December 31, 2006
Quarter ending:
December 31, 2006	$	14.29	$	12.64	$	0.150
September 30, 2006		13.97		13.14		0.150
June 30, 2006		14.17		13.40		0.150
March 31, 2006		14.58		13.86		0.150

4

ISSUER PURCHASES OF EQUITY SECURITIES

The following table shows the total number of shares of Camco’s common stock repurchased during 2007:

					Total number of
					shares purchased		Maximum number
					as part of publicly		of shares that may
	Number of shares		Average price paid		announced plans		yet be repurchased
Period of Repurchase	repurchased		per share		or programs		under the program
January 1 – 31		0		N/A		0		300,936
February 1 – 28		0		N/A		0		300,936
March 1 – 31 (1)		43,510		12.36		43,510		362,902
April 1 – 30		0		N/A		8,500		362,902
May 1 – 31		38,061		12.46		46,561		324,841
June 1 – 30		53,650		12.48		100,211		271,191
July 1 – 31		6,550		12.55		106,761		264,641
August 1 – 31		75,817		13.06		182,578		188,824
September 1 – 30		45,800		13.30		228,878		143,024
October 1 – 31		0		N/A		228,378		143,024
November 1 – 30		46,500		12.05		274,878		96,524
December 1 – 31		0		N/A		274,878		96,524
Total		309,888		12.66		274,878		96,524

On March 27, 2007 the Board of Directors of Camco Financial Corporation approved a stock repurchase plan under which Camco may repurchase up to 5% of its outstanding common stock. 274,878 shares during the year were purchased under the new plan.

5

PERFORMANCE GRAPH

The following graph compares the cumulative total return on Camco’s common stock with the cumulative total return of an index of companies whose shares are traded on Nasdaq and the SNL All Bank & Thrift Index for the same period.

CAMCO FINANCIAL CORPORATION

TOTAL RETURN PERFORMANCE

	Period ending
Index	12/31/02		12/31/03		12/31/04		12/31/05		12/31/06		12/31/07
Camco Financial Corporation		100.00		126.26		117.49		113.27		104.72		95.11
NASDAQ Composite		100.00		150.01		162.89		165.13		180.85		198.60
SNL Bank and Thrift Index		100.00		135.57		151.82		154.20		180.17		137.40

6

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

Since its incorporation in 1970, Camco Financial Corporation (“Camco” or the “Corporation”) has evolved into a full-service provider of financial products through its subsidiaries, Advantage Bank (“Advantage or “Bank”) and Camco Title Agency. Utilizing a common marketing theme based on Camco’s commitment to personalized customer service, Camco has grown from $22.4 million of consolidated assets in 1970 to $1.0 billion of consolidated assets at December 31, 2007. Camco’s rate of growth is largely attributable to its acquisitions and its continued expansion of product lines from the limited deposit and loan offerings which the Bank could offer in the heavily regulated environment of the 1970s to the wider array of financial service products that commercial banks traditionally offer. Additionally, Camco has enhanced its operational growth, to a lesser extent, by chartering a title insurance agency.

We believe that continued success in the financial services industry will be achieved by those institutions with a rigorous dedication to building value-added customer-oriented organizations. Toward this end, each of the Bank’s regions has the ability to make local decisions for customer contacts and services, however back-office operations are consolidated and centralized. Based on consumer and business preferences, we design financial service products with a view towards differentiating each of the constituent regions from its competition. We believe that the Bank regions’ ability to rapidly adapt to consumer and business needs and preferences is essential to them as community-based financial institutions competing against the larger regional and money-center bank holding companies.

Camco’s profitability depends primarily on its level of net interest income, which is the difference between interest income on interest-earning assets, principally loans, mortgage-backed securities and investment securities, and interest expense on deposit accounts and borrowings. In recent years, Camco’s operations have also been heavily influenced by its level of other income, including mortgage banking income and other fee income. Camco’s operations are also affected by general, administrative and other expenses, including employee compensation and benefits, occupancy expense, data processing, franchise taxes, advertising, other operating expenses and federal income tax expense.

OVERVIEW

During 2007, despite the most disruptive economic environment for financial services companies in over ten years, we continued to execute and manage our long-term strategic plan to diversify the balance sheet by increasing our commercial, commercial real estate and consumer loan portfolios and improve our funding mix by reducing borrowings and increasing transaction-based deposits. The following table summarizes our progress:

	2007					2006
	Balance		Mix			Balance		Mix
	(dollars in thousands)
Loans
Residential real estate and multifamily	$	476,020		58	%	$	517,501		63	%
Nonresidential real estate and commercial		167,988		20			140,864		17
Home equity lines of credit and consumer		128,874		16			124,287		15
Construction		45,677		6			42,654		5
Deposits
Checking accounts	$	126,887		18	%	$	126,428		19	%
Money market and savings		148,703		22			137,380		20
Certificates		416,594		60			420,974		61
Federal Home Loan Bank advances	$	199,064				$	245,288

We have found that deposit growth continues to be challenging. According to the Federal Deposit Insurance Corporation, total deposits in Ohio grew only 0.23% between June 2006 and June 2007, reflecting the state’s faltering economy and weak population growth. Competition for deposits continues to put upward pressure on marginal funding costs, despite falling market rates in the second half of 2007. During fiscal 2007, we were able to increase deposits 1.08%. However, we allowed $10.0 million of public auction certificate accounts to mature in 2007 and did not rebid on them due to the collateral requirements, which means that our retail deposits actually grew 2.58% during the year.

7

MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (continued)

During 2007, we undertook a number of franchise-enhancing initiatives to lay the foundation for growth in business and consumer deposits. We launched a branch in London, Ohio, near Columbus, in April 2007 which came on the heels of our launch of a banking office in Mason, Ohio, near Cincinnati, in September 2006. We implemented a branch renovation and merchandising program and initiated an internal and external review of our branch network and sales delivery channels. We launched a new suite of checking accounts for small and medium-sized businesses and AdvantageDeposit 24^©, which allows businesses to deposit checks remotely from their home offices. We dispatched a project team to address, plan and implement the operational and communicative tasks necessary to improve fee collection and address pricing of deposit and loan services. Lastly, we realigned our Retail Banking line of business through which we consolidated retail banking regions from four to two, announced the closing of one underperforming branch in our Greater Cincinnati market, and created positions for business development officers who are primarily charged with outside sales of deposit and loan products. Internal and cross-sell initiatives will be driven by personal bankers and office managers at each of our banking offices. We are continuing to assess the performance of each branch in our footprint and the skills of individuals in key positions. We believe this realignment, coupled with a new sales incentive program and new deposit products will allow us to improve our funding structure through core deposit growth.

The real estate market in the Midwest continues to create a very challenging environment for most financial institutions. Bankruptcies, foreclosures and unemployment continue to rise in Ohio. We are working diligently to manage delinquencies and work with our loan customers in order to reduce losses for them, as well as our company. The total loan portfolio decreased $6.5 million for the full year of 2007 as we tightened credit standards and became more selective in underwriting new loans in the second half of the year, which reduced new loan production. During the second half of 2007, we closed our residential loan production offices in Canton, Ohio, and Huntington, West Virginia, as unprecedented slowdowns in residential real estate construction and home sales made this line of business unprofitable and outside of our key strategic initiatives. We hired several commercial lenders during the year, supporting our strategic plan to increase our commercial and small business loan portfolios, and we increased the number of experienced commercial credit underwriters to manage that line of business as it becomes a larger share of our loan portfolio.

Nonperforming loans increased to $24.0 million at the end of 2007 compared to $17.7 million at the end of 2006. We saw improvement in nonperforming loans secured by residential real estate, but a significant increase in nonperforming commercial real estate and land development loans. We are aggressively working with these borrowers to mitigate losses. Net charge offs totaled $2.0 million during 2007, or a manageable 0.25% as a percentage of average loans. We hired additional workout and collection personnel and asked our lenders to assist with loss mitigation and collection duties. Our lenders will continue to assist with reducing our nonperforming loan levels throughout the new year, but we expect them to also build their loan portfolios during 2008.

In April 2007, we announced the renewal of a share repurchase plan that authorized the buyback of up to 5% of Camco’s common stock. During 2007, we repurchased 309,888 shares and paid dividends of $0.60 per share. Together, those programs returned $8.3 million to shareholders during 2007. In July 2007, we issued $5.0 million of trust preferred securities, which is included in regulatory capital, to fund the share repurchase plan and general corporate purposes. Realizing we are in a weak and very uncertain economic environment, we are monitoring our capital levels very closely in the face of deteriorating credit quality, lower earnings and a possible recession and will take steps necessary in order to preserve capital and improve liquidity.

We believe we are taking significant steps forward in managing our operational efficiency. We are focusing on improving noninterest income and controlling noninterest expense by exiting unprofitable lines of business and refining our operations. We continue to analyze new products to deepen relationships with our customers and improve the structure of our balance sheet.

FORWARD-LOOKING STATEMENTS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) and this annual report include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 (Exchange Act), as amended, which can be identified by the use of forward-looking terminology, such as may, might, could, would, believe, expect, intend, plan, seek, anticipate, estimate, project or continue or the negative thereof or comparable terminology. All statements other than statements of historical fact included in this document regarding our outlook, financial position and results of operation, liquidity, capital resources

8

and interest rate sensitivity are forward-looking statements. These forward-looking statements also include, but are not limited to:

•   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.

These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results to be materially different from any future results expressed or implied by such forward-looking statements. Although we believe the expectations reflected in such forward-looking statements are reasonable, we can give no assurance such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements included herein include, but are not limited to:

•   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.

This MD&A is intended to give stockholders a more comprehensive review of the issues facing management than could be obtained from an examination of the financial statements alone. This analysis should be read in conjunction with the consolidated financial statements and related footnotes and the selected financial data elsewhere in this annual report. As used herein and except as the context may otherwise require, references to “Camco,” “the Corporation”, “we,” “us,” or “our” means, collectively, Camco Financial Corporation and its wholly owned subsidiaries, Advantage Bank and Camco Title Agency.

NON-GAAP FINANCIAL MEASURES

This report includes one or more non-GAAP financial measures within the meaning of Regulation G. With respect to each, Camco has disclosed the most directly comparable financial measure calculated and presented in accordance with GAAP and reconciled the differences between the non-GAAP financial measure and the most comparable financial measure presented in accordance with GAAP.

Camco believes that the presentation of the non-GAAP financial measures in this report assist management and investors to compare results period-to-period in a more meaningful and consistent manner and provide a better measure of results for Camco’s ongoing operations.

CRITICAL ACCOUNTING POLICIES

This MD&A, as well as disclosures found elsewhere in this annual report, are based upon Camco’s consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The preparation of these financial statements requires Camco to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. Several factors are considered in determining whether or not a policy is critical in the preparation of financial statements. These factors include, among other things, whether the estimates are significant to the financial statements, the nature of the estimates, the ability to readily validate the estimates with other information including third parties or available prices, and sensitivity of the estimates to changes in economic conditions and whether alternative accounting methods may be utilized under US GAAP.

9

MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (continued)

Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of mortgage servicing rights and goodwill impairment. Actual results could differ from those estimates.

Allowance for Loan Losses. The procedures for assessing the adequacy of the allowance for loan losses reflect our evaluation of credit risk after careful consideration and interpretation of relevant information available to us. In developing this assessment, we must rely on estimates and exercise judgment regarding matters where the ultimate outcome is unknown such as economic factors, developments affecting companies in specific industries and issues with respect to single borrowers. Depending on changes in circumstances, future assessments of credit risk may yield materially different results, which may require an increase or a decrease in the allowance for loan losses.

The allowance is regularly reviewed by management to determine whether the amount is considered adequate to absorb probable, incurred losses. This evaluation includes specific loss estimates on certain individually reviewed loans, statistical loss estimates for loan pools that are based on historical loss experience, and general loss estimates that are based upon the size, quality, and concentration characteristics of the various loan portfolios, adverse situations that may affect a borrower’s ability to repay, and current economic and industry conditions, including real estate and collateral valuations. Also considered as part of that judgment is a review of the Bank’s trends in delinquencies and loan losses, as well as trends in delinquencies and losses for the region and nationally, and economic factors.

The allowance for loan losses is maintained at a level that management believes to be adequate to absorb probable, incurred losses inherent in the loan portfolio at the balance sheet dates presented. Our evaluation of the adequacy of the allowance for loan losses is an estimate based on management’s current judgment about the credit quality of the loan portfolio. While we strive to reflect all known risk factors in our evaluations, actual results may differ significantly from our estimates.

Mortgage Servicing Rights. To determine the fair value of our mortgage servicing rights (“MSRs”) each reporting quarter, we transmit information to a third party provider who assists us with determining the possible impairment of MSRs, as described below.

Servicing assets are recognized as separate assets when loans are sold with servicing retained. A pooling methodology to the servicing valuation, in which loans with similar characteristics are “pooled” together, is applied for valuation purposes. Once pooled, each grouping of loans is evaluated on a discounted earnings basis to determine the present value of future earnings that a purchaser could expect to realize from the portfolio. Earnings are projected from a variety of sources including loan service fees, interest earned on float, net interest earned on escrow balances, miscellaneous income and costs to service the loans. The present value of future earnings is the estimated market value for the pool, calculated using consensus assumptions that a third party purchaser would utilize in evaluating a potential acquisition of the servicing. Events that may significantly affect the estimates used are changes in interest rates and the related impact on mortgage loan prepayment speeds and the payment performance of the underlying loans. The interest rate for float, which we estimate, takes into consideration the investment portfolio average yield as well as current short duration investment yields. We believe this methodology provides a reasonable estimate. Mortgage loan prepayment speeds are calculated by the third party provider utilizing the Economic Outlook as published by the Office of Chief Economist of Freddie Mac in estimating prepayment speeds and provides a specific scenario with each evaluation. Based on the assumptions discussed, pre-tax projections are prepared for each pool of loans serviced. These earning figures approximate the cash flow that could be received from the servicing portfolio. Valuation results are presented quarterly to management. At that time, we review the information and MSRs are marked to the lower of amortized cost or fair value for the current quarter.

Goodwill. We have developed procedures to test goodwill for impairment on an annual basis using June 30 financial information. This testing procedure is performed with the assistance of a third party that evaluates possible impairment based on the following:

The test involves assigning tangible assets and liabilities, identified intangible assets and goodwill to a reporting unit and comparing the fair value of this reporting unit to its carrying value including goodwill. The value is determined assuming a freely negotiated transaction between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts. Accordingly, to derive the fair value of the reporting unit, the following common approaches to valuing business combination transactions involving financial institutions are utilized by a third party selected by Camco: (1) the comparable transactions approach — specifically based on earnings, book, assets and deposit premium multiples received in recent sales of comparable thrift franchises; and (2) the discounted cash flow approach. The application of these valuation techniques takes into account the reporting unit’s operating history, the current market environment and future prospects. As of the most recent quarter, the only reporting unit carrying goodwill is the Bank.

10

If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and no second step is required. If not, a second test is required to measure the amount of goodwill impairment. The second test of the overall goodwill impairment compares the implied fair value of the reporting unit goodwill with the carrying amount of the goodwill. The impairment loss shall equal the excess of carrying value over fair value.

After each testing period, the third party compiles a summary of the test that is then provided to the Audit and Risk Management Committee of the Board of Directors for review. As of the most recent testing date, June 30, 2007, the fair value of the reporting unit exceeded its carrying amount; therefore, no impairment was recorded.

Summary. We believe the accounting estimates related to the allowance for loan losses, the capitalization, amortization, and valuation of mortgage servicing rights and the goodwill impairment test are “critical accounting estimates” because: (1) the estimates are highly susceptible to change from period to period because they require us to make assumptions concerning the changes in the types and volumes of the portfolios, rates of future prepayments, and anticipated economic conditions, and (2) the impact of recognizing an impairment or loan loss could have a material effect on Camco’s assets reported on the balance sheet as well as its net earnings. Management has discussed the development and selection of these critical accounting estimates with the Audit and Risk Management Committee of the Board of Directors and they have reviewed Camco’s disclosures relating to such matters in this MD&A.

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

At December 31, 2007, Camco’s consolidated assets totaled $1.0 billion, a decrease of $25.0 million, or 2.4%, from the December 31, 2006, total. The decrease in total assets was comprised primarily of decreases in loans receivable, securities available for sale and cash and cash equivalents, offset partially by the increase of prepaid expenses and other assets. We expect total asset growth to be limited in the near term as growth in deposits would most likely be used to reduce outstanding borrowings and an uncertain and distressed regional economic environment is expected to reduce the demand for loans in 2008. Further deterioration of the residential loan market in the Midwest may result in a shift in the loan portfolio toward commercial and consumer loans.

Cash and interest-bearing deposits in other financial institutions totaled $23.0 million at December 31, 2007, a decrease of $3.5 million, or 13.3%, from December 31, 2006, levels. Securities totaled $91.7 million at December 31, 2007, a decrease of $19.3 million, or 17.4%, from the total at December 31, 2006. Investment purchases totaled $43.7 million while maturities, principal repayments, and calls totaled $64.7 million during 2007. Purchases were comprised primarily of intermediate-term callable notes and mortgage-backed securities issued by U.S. Government sponsored enterprises with an average yield of 4.93% and 5.54%, respectively. All of the securities purchased were classified as available for sale.

During 2007, we used cash flows from the securities portfolio to reduce borrowings. Approximately 50% of the portfolio is expected to mature or prepay during 2008. We have kept the duration and average life of the securities portfolio very short in order to provide liquidity and to reduce borrowings, when available.

At December 31, 2007, other than $779,000 of municipal bonds, all of our debt securities were issued and guaranteed by US Government sponsored enterprises such as Freddie Mac, Fannie Mae and the Federal Home Loan Banks. We held no private-label mortgage-backed securities or collateralized debt obligations.

Loans receivable and loans held for sale totaled $815.3 million at December 31, 2007, a decrease of $6.5 million, or 0.8%, from the total at December 31, 2006. The decrease resulted primarily from repayments of $249.9 million and loan sales of $50.0 million, partially offset by loan disbursements and purchases totaling $298.3 million. Loan origination volume, including purchases of loans, was greater than that of the comparable 2006 period by $11.8 million, or 4.1%, while the volume of loan sales decreased by $971,000 year to year. The number of loans originated for sale in the secondary market continues to decline as unprecedented disruptions in the residential real estate market have significantly slowed home sales and new home construction. Instead of selling adjustable rate loans, we have typically held adjustable-rate mortgage loans for investment as an integral part of our strategy to manage interest rate risk. Loan originations during the 12 month period were comprised primarily of $122.2 million of loans secured by one- to four-family residential real estate, $80.1 million in consumer and other loans and $96.0 million in loans secured by commercial real estate. We intend to expand our consumer and commercial lending in future periods as a means of increasing the yield on our loan portfolio, obtain a higher return on risk-adjusted capital and to improve our interest rate risk position.

During 2007, the yield on loans was 7.03%, and the portfolio mix continued to shift to higher yielding consumer and commercial loans. This shift is offsetting lower effective rates in the loan portfolio during the second half of 2007 due to rapidly falling interest rates, primarily the Prime rate. At December 31, 2007, approximately 19% of our loan portfolio had

11

MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (continued)

interest rates tied to the Prime rate. Only 32% of our loan portfolio was fixed rate. Loan portfolio balances fell $22.19 million during the fourth quarter with conventional mortgage loans comprising 51% of this decrease. The overall loan portfolio decreased for the full year of 2007 as we tightened credit standards and became more selective in underwriting new loans in the second half of the year, which significantly reduced new loan production. Additionally, our lenders assisted with credit and collections duties and some commercial loans were not renewed due to concerns about future performance of the loan, which resulted in those loans being refinanced at other institutions.

The allowance for loan losses totaled $6.6 million and $7.1 million at December 31, 2007 and 2006, respectively, representing 26.0% and 38.5% of nonperforming loans at those dates. Nonperforming loans (three months or more delinquent plus nonaccrual loans) totaled $25.5 million and $18.5 million at December 31, 2007 and 2006, respectively, constituting 3.13% and 2.26% of total net loans, including loans held for sale, at those dates. Net charge-offs totaled $2.0 million for 2007. Net charge offs were comprised mainly of multi-family loans, 1-4 family loans and home equity lines of credit, which totaled $739,000, $752,000 and $250,000 respectively.

The following table details delinquent and nonaccrual loans at December 31, 2007 and 2006:

	December 31, 2007						December 31, 2006
			90+ days						90+ days
	30-89 days		delinquent,				30-89 days		delinquent,
	delinquent		accruing		Nonaccrual		delinquent		accruing		Nonaccrual
	(In thousands)
Construction/Development	$	11	$	—	$	5,568	$	14	$	—	$	92
HELOC and second mortgage		1,152		—		1,026		1,398		—		805
1-4 Family		6,652		1,520		8,310		7,363		728		9,563
Multifamily		—		—		871		—		143		4,682
Commercial		2,036		—		7,603		4,911		—		2,387
Consumer and other		2,561		—		617		147		—		136
Total	$	12,412	$	1,520	$	23,995	$	13,833	$	871	$	17,665

Although we believe that the allowance for loan losses at December 31, 2007, is adequate to cover probable, incurred losses inherent in the loan portfolio at that date based upon the available facts and circumstances, there can be no assurance that additions to the allowance for loan losses will not be necessary in future periods, which could adversely affect our results of operations. Unemployment rates in our markets, and Ohio in general, are higher than the national average and bankruptcy and foreclosure filings in Ohio during 2007 were very high compared to the rest of the nation. Additionally, Ohio is experiencing declining values of residential real estate. However, Ohio in general has not experienced significant increases in home values over the past five years like many regions in the U.S., which should comparatively mitigate losses on loans. Nonetheless, these factors, compounded by a very uncertain national economic outlook, may increase the level of future losses beyond our current expectations.

Deposits totaled $692.1 million at December 31, 2007 an increase of $7.4 million, or 1.1% from December 31, 2006 levels despite the reduction of $10.0 million of auctioned public funds that were not renewed during the year due to collateral requirements. The increase resulted from increases of $22.4 million in money market accounts, $4.0 million in non-interest bearing demand deposit accounts offset partially by a decrease of $11.0 million in savings accounts, $4.4 million in certificates of deposit and $3.6 million in interest bearing demand deposit accounts.

The increase in money market accounts during 2007 is a result of savings account customers shifting to higher-yielding money market accounts. Additionally, a public fund moved approximately $6.6 million from a maturing certificate of deposit to a money market account. The Bank has moved to reduce its money market account yields in conjunction with Federal Reserve Bank discount rate and Federal Funds rate decreases during the second half of 2007.

We anticipate using brokered deposits in early 2008 in order to reduce borrowings and improve the Bank’s liquidity position. However, we acknowledge that brokered deposits are not core, franchise-enhancing deposits, and we do not intend to stray from our strategy of improving the long-term funding mix of the Bank’s deposit portfolio by aggregating small business, commercial and retail checking accounts. To that end, we implemented a number of organizational and product development initiatives in 2007. These initiatives included the launch of a new suite of commercial and small business checking accounts, enhancements to our online business cash management system, and the launch of a remote deposit

12

capture solution. We believe these new products will help us penetrate a very competitive market for business checking accounts. See “Liquidity and Capital Resources” in this MD&A for further discussion on our deposit strategy and additional liquidity risks.

Advances from the FHLB and other borrowings decreased by $36.2 million, or 14.1%, to a total of $221.0 million at December 31, 2007. We were able to reduce borrowings as a result of the increase in deposits and a net decrease in the loan and investment portfolios. A reduction in cash balances at December 31, 2007, of $3.5 million reflects cash used to reduce FHLB borrowings. We plan to reduce FHLB advances further when possible in 2008 and beyond. In July 2007, we issued $5.0 million of trust preferred securities through an unconsolidated subsidiary. The proceeds from this offering were used in our stock repurchase program and for general corporate purposes.

Stockholders’ equity totaled $88.6 million at December 31, 2007, a decrease of $2.5 million, or 2.7% decrease from December 31, 2006. The decrease resulted primarily from dividends of $4.4 million and the purchase of $3.9 million in treasury stock, which was offset partially by net earnings of $4.5 million and a decrease of $1.2 million in unrealized losses on securities, net of tax effects.

The Bank is required to maintain minimum regulatory capital pursuant to federal regulations. At December 31, 2007, the regulatory capital of the Bank exceeded all regulatory capital requirements.

COMPARISON OF RESULTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2007 AND DECEMBER 31, 2006

General. Camco’s net earnings for the year ended December 31, 2007, totaled $4.5 million, a decrease of $1.4 million, or 23.4%, from the $5.9 million of net income reported in 2006. The decrease in earnings was primarily due to the increase of $2.1 million in general, administrative and other expenses coupled with the decrease of $1.0 million in net interest income which was offset partially by an $817,000 increase in other income and a $962,000 decrease in the provision for federal taxes.

Net Interest Income. Net interest income for the year ended December 31, 2007, amounted to $28.9 million, a decrease of $1.0 million, or 3.4%, compared to 2006, generally reflecting the effects of an increase of 51 basis points in the cost of funds. This was offset partially by a $26.1 million decrease in the average balance of interest-bearing liabilities. An increase of 42 basis points in the average yield on interest-earning assets, from 6.26% in 2006 to 6.68% in 2007, was offset partially by a $23.4 million decrease in the average balance of interest-earning assets outstanding year to year.

The increase in the yield on assets resulted from a higher rate environment during most of 2007, compared to 2006, and a shift in the loan portfolio composition from conventional single family residential loans to higher-yielding commercial and consumer loans. Additionally, loans comprised 83.5% and 82.5% of interest-earning assets in 2007 and 2006, respectively.

Interest income on loans totaled $57.4 million for the year ended December 31, 2007, an increase of $2.7 million, or 4.9%, from the comparable 2006 total. The increase resulted primarily from a 40 basis point increase in the average yield, from 6.63% in 2006, to 7.03% in 2007, offset partially by a $9.3 million, or 1.1%, decrease in the average balance of loans outstanding year to year. Interest income on securities totaled $4.6 million for the year ended December 31, 2007, a $55,000, or 1.1%, decrease from the 2006 period. The decrease was due primarily to an $8.6 million, or 7.7%, decrease in the average balance outstanding, partially offset by a 29 basis point increase in the average yield, to 4.41% in 2007. Interest income on FHLB stock increased by $283,000, or 17.6%, due primarily to an 80 basis point increase in the average yield, to 6.60% in 2007 coupled with a $945,000 increase in the average balance outstanding year to year. Interest income on cash surrender value of life insurance increased $28,000 or 3.0%, due primarily to a 4 basis point increase in the average yield, to 4.45% coupled with a $451,000, or 2.2% increase in the average balance outstanding year to year. Interest income on other interest-bearing deposits decreased by $312,000, or 41.4%, due primarily to a $6.9 million, or 48.3% decrease in the average outstanding year to year offset partially by a 71 basis points increase in the average yield, to 6.02% in 2007.

Interest expense on deposits totaled $25.4 million for the year ended December 31, 2007, an increase of $4.2 million, or 19.7%, compared to the year ended December 31, 2006, due primarily to an 61 basis point increase in the average cost of deposits, to 3.9% for 2007, coupled with a $6.4 million, or 1.0%, increase in the average balance of interest-bearing deposits outstanding year to year. Interest expense on borrowings totaled $11.0 million for the year ended December 31, 2007, a decrease of $531,000, or 4.6%, from 2006. The decrease resulted primarily from a $32.5 million, or 11.5%, decrease in the average balance outstanding year to year offset partially by a 32 basis point increase in the average rate to 4.40% in 2007.

Approximately $303.1 million, or 73.3%, of our certificate of deposit portfolio will mature during 2008. While this presents an opportunity to reduce our cost of funds since these deposits are repricing in a generally lower interest rate environment,

13

MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (continued)

we continue to experience strong competition for deposits in our market areas, which is limiting our ability to quickly reduce the marginal cost of deposits to a level reflective of the general rate environment at the end of 2007. Continued decreases in the Prime rate will likely compress our net interest margin due to the lag in repricing between our loan and deposit portfolios, at least in the first half of 2008. At the same time, the loan portfolio has not grown at a fast enough pace to offset these tighter spreads. As noted earlier, we plan to continue to diversify the loan portfolio by encouraging growth in commercial and consumer loan balances. This strategy should slow net interest margin compression as these types of loans are normally higher-yielding assets than conventional mortgage loans and investment securities.

Provision for Losses on Loans. A provision for losses on loans is charged to earnings to bring the total allowance for loan losses to a level considered appropriate by management based on historical experience, the volume and type of lending conducted by the Bank, the status of past due principal and interest payments, general economic conditions, particularly as such conditions relate to the Bank’s market areas, and other factors related to the collectibility of the Bank’s loan portfolio. Based upon an analysis of these factors, management recorded a provision for losses on loans totaling $1.5 million for the year ended December 31, 2007, an increase of $55,000, or 3.8%, from the provision recorded in 2006.

Other Income. Other income totaled $5.9 million for the year ended December 31, 2007, an increase of $817,000, or 16.2%, compared to 2006. The increase in other income was primarily attributable to a $481,000 decrease in the net amortization of mortgage servicing rights, a $385,000 increase in service charges and other fees on deposits and a $222,000 increase in late charges, rent and other income which was offset partially by a $225,000 increase in the net loss on the sale of real estate acquired through foreclosure.

In fourth quarter of 2006, we updated some of the assumptions used in estimating the value of capitalized mortgage servicing rights. We reduced the estimated cost to service a loan and we reduced the estimated ancillary income to be earned per loan. As a result, we recorded a $553,000 impairment on capitalized mortgage servicing rights in 2006. Excluding the 2006 impairment, amortization increased $49,000 and income from new servicing rights decreased $24,000 during 2007.

The increase in service charges and other fees on deposits was primarily due to increased service, overdraft and non-sufficient fund fees and more checking accounts in 2007. Initiatives to increase fee collection and improve the Company’s current fee structure are being implemented to place more emphasis on this vital revenue stream.

The increase in late charges, rent and other income in 2007 was due to an increase in loan prepayment penalties of $171,000 and an increase in surcharge and interchange income from automated teller machine (ATM) activity of $137,000. Additionally, we decided in the first quarter of 2006 to discontinue the accrual of late charges on commercial loans and recognize late charges as income when collected. This decision resulted in a decrease in other income of $166,000 for the 2006 period. Other income from our title insurance agency fell $47,000 in 2007 due to the significant slowdown in home sales and related mortgage loan volume.

At December 31, 2007, we serviced $516.0 million of one-to-four family residential mortgage loans for other financial institutions, primarily Freddie Mac and Fannie Mae, which declined from $536.0 million at December 31, 2006. As a result of this shrinking servicing portfolio, loan servicing income decreased $37,000 in 2007.

In 2007, the net loss on real estate acquired through foreclosure can be attributed primarily to a $334,000 loss on a single commercial property that secured a loan to which we were a participant. We were unable to directly control the actions of the bank that originated the loan and subsequently executed a sale of that property. Excluding this single event, we realized a net gain on the sale of foreclosed real estate of $37,000 in 2007. This reflects the diligence of our Credit Administration team to mitigate losses on foreclosures. However, approximately 1.8% of the households in Ohio were in foreclosure at December 31, 2007, an increase of 64% from December 31, 2006. Additionally, as noted earlier, home values in Ohio are declining from 2006 levels. These factors, compounded by an uncertain economic outlook and increasing unemployment, may result in higher losses on real estate acquired through foreclosure in 2008 and beyond.

General, Administrative and Other Expense. General, administrative and other expense totaled $27.0 million for the year ended December 31, 2007, an increase of $2.1 million, or 8.3%, compared to 2006. The increase was due primarily to a $602,000, or 4.9%, increase in employee compensation and benefits and a $282,000, or 8.9%, increase in occupancy and equipment. Other operating expense increased $1.1 million, or 19.6%, due primarily to a $567,000, increase in real estate owned expense, a $279,000, or 23.9%, increase in loan and deposit expense.

The increase in employee compensation and benefits is due to several key hires within mid-management of the Corporation, including commercial lenders. Loan collection staff was hired in 2007 to improve our monitoring and collection of delinquent loans. The Company has launched two banking offices since the third quarter of 2006, which increased personnel expenses in 2007. We combined two of our retail banking regions and closed two loan production

14

offices in the third quarter of 2007. While these closings are expected to decrease compensation expense in the future, one-time severance costs related to these closings totaled $181,000 in 2007. These increases were offset partially by the adjustment of a post-retirement accrual due to the departure of a member of senior management in June 2007.

The occupancy and equipment expense increase is primarily due to the opening of two banking offices located in Mason and London, Ohio. Advertising is also higher in 2007 as a result of the banking office launches coupled with new deposit products and direct mail campaigns. Management has undertaken a branch merchandising program to standardize and improve the look and feel, and ultimately the sales process in the Bank’s offices. The increase in deposit expenses was primarily due to correspondent bank service charges and transaction account expenses.

While expenses have increased due to the addition of a number of revenue producing positions and the opening of two banking offices, we believe these investments in personnel and property are imperative to Camco’s growth strategy. However, when new banking offices are opened, some time is needed to absorb the cost and create more revenue in these new markets.

Data processing expense is lower in 2007 as the Bank underwent a core processing conversion in 2006. We have also implemented cost saving initiatives in our telecommunications and information technology services.

The increase in other operating expenses was driven by increases in professional services, loan expenses and expenses on real estate acquired through foreclosure. Professional services increased $148,000, primarily due to recruiting costs for commercial lenders and consulting fees incurred with the review of our operations and our fee collection processes. Other loan expenses increased $279,000 primarily due to a charge of $174,000 taken during 2007 related to the repurchase of $1.3 million of residential real estate loans and a $98,000 increase in insurance premiums for private mortgage and collateral loss insurance on our mortgage and home equity loans. The increase in real estate owned and other expenses was due to higher levels of foreclosures in 2007, which increased maintenance expenses on those properties, and due to write-downs of real estate owned. We also commenced the amortization of our investment in affordable housing partnerships. We receive tax credits and other tax benefits through our investment in these partnerships.

Federal Income Taxes. Federal income tax totaled $1.8 million for the year ended December 31, 2007, a decrease of $962,000, or 35.3%, compared to the provision recorded in 2006. The effective tax rates amounted to 28.2% and 31.7% for the years ended December 31, 2007 and 2006, respectively. The decrease in federal income tax expense was primarily attributable to a $2.3 million, or 27.2%, decrease in pre-tax earnings. Tax credits related to our investment in affordable housing partnerships totaled $110,000 in 2007. We did not record tax credits in 2006. The tax-exempt character of earnings on bank-owned life insurance is another reason for the difference between the effective rate of tax expense and the statutory corporate tax rate for the years ended December 31, 2007 and 2006.

COMPARISON OF RESULTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2006 AND DECEMBER 31, 2005

General. Camco’s net earnings for the year ended December 31, 2006, totaled $5.9 million, a decrease of $2.9 million, or 33.0%, from the $8.8 million of net income reported in 2005. The decrease in earnings was primarily due to the increase of $2.2 million in general, administrative and other expenses coupled with the decrease of $1.6 million in other income which was offset partially by a $1.4 million, or 34.2%, decrease in the provision for federal taxes.

Net Interest Income. Net interest income for the year ended December 31, 2006, amounted to $29.9 million, a decrease of $631,000, or 2.1%, compared to 2005, generally reflecting the effects of an increase of 70 basis points in the cost of funds. This was offset partially by a $9.2 million decrease in the average balance of cost of funds and an increase of interest earning assets of 58 basis points in the average yield, from 5.68% in 2005 to 6.26% in 2006, offset partially by a $3.8 million decrease in the average balance of interest-earning assets outstanding year to year.

Interest income on loans totaled $54.8 million for the year ended December 31, 2006, an increase of $4.6 million, or 9.2%, from the comparable 2005 total. The increase resulted primarily from a 62 basis point increase in the average yield, from 6.01% in 2005, to 6.63% in 2006, offset partially by a $9.1 million, or 1.0%, decrease in the average balance of loans outstanding year to year. Interest income on securities totaled $4.6 million for the year ended December 31, 2006, a $547,000, or 13.4%, increase from the 2005 period. The increase was due primarily to a $2.0 million, or 1.8%, increase in the average balance outstanding, coupled with a 42 basis point increase in the average yield, to 4.12% in 2006. Interest income on FHLB stock increased by $296,000, or 22.5%, due primarily to a $1.5 million increase in the average balance outstanding year to year, coupled with an 80 basis point increase in the average yield, to 5.80% in 2006. Interest income on cash surrender value of life insurance increased by $21,000, or 2.3% due primarily to an increase of $444,000, or 2.2% in

15

MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (continued)

the average balance outstanding year to year coupled with a 1 basis point increase in the average yield, to 4.41% in 2006. Interest income on other interest-earning assets increased by $148,000, or 24.4%, due primarily to an increase in the yield of 58 basis points, to 5.31% in 2006, coupled with an increase of $1.4 million, or 11.0%, in the average balance outstanding year to year.

Interest expense on deposits totaled $21.2 million for the year ended December 31, 2006, an increase of $5.8 million, or 37.7%, compared to the year ended December 31, 2005, due primarily to an 88 basis point increase in the average cost of deposits, to 3.29% for 2006, coupled with a $5.8 million, or .9%, increase in the average balance of interest-bearing deposits outstanding year to year. Interest expense on borrowings totaled $11.5 million for the year ended December 31, 2006, an increase of $428,000, or 3.9%, from 2005. The increase resulted primarily from a 35 basis point increase in the average rate to 4.08% in 2006, partially offset by a $15.6 million, or 5.2%, decrease in the average balance outstanding year to year.

As a result of the foregoing changes in interest income and interest expense, net interest income decreased by $631,000, or 2.1%, to a total of $29.9 million for the year ended December 31, 2006. The interest rate spread decreased to approximately 2.73% at December 31, 2006, from 2.85% at December 31, 2005, while the net interest margin increased to approximately 2.99% for the year ended December 31, 2006, compared to 3.04% for the 2005 period.

Provision for Losses on Loans. A provision for losses on loans is charged to earnings to bring the total allowance for loan losses to a level considered appropriate by management based on historical experience, the volume and type of lending conducted by the Bank, the status of past due principal and interest payments, general economic conditions, particularly as such conditions relate to the Bank’s market areas, and other factors related to the collectibility of the Bank’s loan portfolio. Based upon an analysis of these factors, management recorded a provision for losses on loans totaling $1.4 million for the year ended December 31, 2006, a decrease of $40,000, or 2.7%, from the provision recorded in 2005.

Other Income. Other income totaled $5.0 million for the year ended December 31, 2006, a decrease of $1.6 million, or 23.7%, compared to 2005. The decrease in other income was primarily attributable to a $569,000 decrease in mortgage servicing rights, a $388,000, or 56.8%, decrease in gain on sale of loans and a $390,000 or 24.6% decrease in late charges, rent and other income. The decrease in mortgage servicing rights was attributable to the increase of loan prepayments in the servicing portfolio for the period coupled with the decrease of loans sold. The decrease in gain on sale of loans was due primarily to a decrease in the volume of loans sold of $18.8 million, or 27.0%, from the volume of loans sold in 2005. During 2006, the Bank recorded MSR’s on new loan sales totaling $703,000 and amortization of MSR’s totaling $1.3 million, which resulted in net loss in revenue item of $549,000. The decrease in late charges, rent and other was due primarily to a management decision to discontinue the accrual of late charges on commercial loans and move to a method that would recognize late charges as income when collected. This decision to reverse accrued late charges resulted in a decrease in other income of $166,000 for the period coupled with decreased commercial prepayment fees of $211,300 and $78,600 in title and search fees earned by Camco Title Agency.

General, Administrative and Other Expense. General, administrative and other expense totaled $24.9 million for the year ended December 31, 2006, an increase of $2.2 million, or 9.5%, compared to 2005. The increase was due primarily to a $760,000, or 284.6%, increase in franchise taxes and a $770,000, or 6.6%, increase in employee compensation and benefits and a $579,000 or 11.1% increase in other operating costs. The increase in franchise tax was due to incurring a normal level of expense after realizing a one-time savings which occurred in 2005 from the acquisition of London Financial Corporation in August 2004, when the bank adopted a state commercial bank charter. The increase in employee compensation and benefits is primarily due to several key hires within the mid-management level of the Corporation as well as revenue generating commercial lenders in the markets we serve, recruiting expense, merit increases and increases in health insurance expense. The increase in other operating costs relates to increases of $105,000 in ATM processing expense, $74,000 in courier and overnight delivery charges, $126,000 in audit and other professional services and $56,000 in bank service charges relating to changing our depository bank at the time of conversion.

Federal Income Taxes. Federal income tax totaled $2.7 million for the year ended December 31, 2006, a decrease of $1.4 million, or 34.2%, compared to the provision recorded in 2005. This decrease was primarily attributable to a $4.3 million, or 33.4%, decrease in pre-tax earnings. The Corporation’s effective tax rates amounted to 31.7% and 32.1% for the years ended December 31, 2006 and 2005, respectively. The tax-exempt character of earnings on bank-owned life insurance is the principal difference between the effective rate of tax expense and the statutory corporate tax rate for the years ended December 31, 2006 and 2005.

16

AVERAGE BALANCE, YIELD, RATE AND VOLUME DATA

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. Some items in the prior-year financial statements were reclassified to conform to the current year’s presentation, including the reclassification of nonaccrual loans, mortgage servicing rights and the allowance for loan losses from Loans receivable to Noninterest-earning assets.

	Year ended December 31,
			2007							2006							2005
	Average		Interest		Average			Average		Interest		Average			Average		Interest		Average
	outstanding		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		3.70
FHLB Stock		28,722		1,894		6.60			27,777		1,611		5.80			26,317		1,315		5.00
Cash surrender value of life insurance		21,312		948		4.45			20,861		920		4.41			20,417		899		4.40
Interest-bearing deposits and other		7,341		442		6.02			14,211		754		5.31			12,808		606		4.73
Total interest-earning assets		977,974		65,317		6.68			1,001,348		62,689		6.26			1,005,172		57,078		5.68
Noninterest-earning assets (3)		67,337							60,290							63,561
Total Average Assets	$	1,045,311						$	1,061,638						$	1,068,733
Interest-bearing liabilities:
Deposits	$	652,711		25,429		3.90			646,269		21,248		3.29			640,469		15,434		2.41
FHLB advances and other		249,793		10,992		4.40			282,325		11,523		4.08			297,304		11,095		3.73
Total interest-bearing liabilities		902,504		36,421		4.04			928,594		32,771		3.53			937,773		26,529		2.83
Noninterest-bearing deposits		35,919							30,163							28,627
Noninterest-bearing liabilities		16,418							11,991							11,731
Total Average Liabilities		954,841							970,748							978,131
Total Average Shareholders’ Equity		90,470							90,890							90,602
Total Average Liabilities and Shareholders’ Equity	$	1,045,311						$	1,061,638						$	1,068,733
Net 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

The following table describes the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected Camco’s interest income and expense during the periods indicated. For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to (i) changes in volume (change in volume multiplied by prior year rate), (ii) changes in rate (change in rate multiplied by prior year volume) and (iii) total changes in rate and volume.

	Year ended December 31
	2007									2006
	Increase/(decrease) due to									Increase/(decrease) due to
	Volume			Rate			Total			Volume			Rate			Total
	(In thousands)
Interest income attributable to:
Loans receivable (1)	$	(607	)	$	3,291		$	2,684		$	(307	)	$	4,906		$	4,599
Securities		(649	)		594			(55	)		3			544			547
Interest-bearing deposits and other		(357	)		356			(1	)		162			303			465
Total interest income		(1,613	)		4,241			2,628			(142	)		5,753			5,611
Interest expense attributable to:
Deposits		214			3,967			4,181			141			5,673			5,814
Borrowings		(1,650	)		1,119			(531	)		(498	)		926			428
Total Interest expense		(1,436	)		5,086			3,650			(357	)		6,599			6,242
Increase (decrease) in net interest income	$	(177	)	$	(845	)	$	(1,022	)	$	215		$	(846	)	$	(631	)

⁽¹⁾ Includes loans held for sale.

Yields Earned and Rates Paid

The following table sets forth the weighted-average yields earned on Camco’s interest-earning assets, the weighted-average interest rates paid on Camco’s interest-bearing liabilities and the interest rate spread between the weighted-average yields earned and rates paid by Camco at the dates indicated. This does not reflect the spread that may eventually be achieved in 2008 or beyond due to possible changes in weighted-average yields earned on interest-earning assets and paid on interest-bearing liabilities in the upcoming year.

	At December 31,
	2007			2006			2005
Weighted-average yield on:
Loan portfolio (1)		7.05	%		6.97	%		6.36	%
Investment portfolio (2)		5.30			4.62			4.53
Total interest-earning assets		6.77			6.56			6.02
Weighted-average rate paid on:
Deposits		3.88			3.52			2.60
FHLB advances		4.42			4.28			3.94
Total interest-bearing liabilities		4.02			3.73			3.01
Interest 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

The objective of our interest rate risk management function is to maintain consistent growth in net interest income within the Board’s policy limits. This objective is accomplished through management of balance sheet composition, liquidity, and interest rate risk exposures arising from changing economic conditions, interest rates and customer preferences.

The goal of liquidity management is to provide adequate funds to meet changes in loan demand or unexpected deposit withdrawals. This is accomplished by maintaining liquid assets in the form of investment securities, maintaining sufficient unused borrowing capacity and achieving consistent growth in core deposits. See “Liquidity and Capital Resources” for additional discussion on liquidity.

We consider interest rate risk to be Camco’s most significant market risk. Interest rate risk is the exposure to adverse changes in net interest income due to changes in interest rates. Consistency of Camco’s net interest income is largely dependent upon the effective management of interest rate risk.

To identify and manage interest rate risk, we employ an earnings simulation model to analyze net interest income sensitivity to changing interest rates. The model is based on estimated cash flows and repricing characteristics and incorporates market-based assumptions regarding the effect of changing interest rates on the prepayment rates of certain assets and liabilities. The model also includes projections for activity levels in each of the product lines offered. Assumptions based on the historical behavior of deposit rates and balances in relation to changes in interest rates are also incorporated into the model. Assumptions are inherently uncertain and the measurement of net interest income or the impact of rate fluctuations on net interest income cannot be precisely predicted. Actual results may differ from simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies.

The Bank’s Asset/Liability Management Committee (“ALCO”), which includes senior management representatives and reports to the Bank’s Board of Directors, monitors and manages interest rate risk within Board-approved policy limits. The interest rate risk position of Camco presented below is determined by measuring the anticipated change in net interest income over a twelve month horizon assuming an instantaneous and parallel shift (linear) increase or decrease in all interest rates.

For example, the tables below assume that a decrease in market rates of 100 basis points will result in an immediate reduction of our money market deposit accounts rates of 100 basis points. Competitive pressures such as the environment we are in currently, may limit our ability to actually reduce money market rates by 100 basis points. The table below also includes assumptions on loan production and deposit growth over the next twelve months. Actual results may significantly differ from those presented below due to the uncertainty of our estimates.

The following table shows the Corporation’s estimated earnings sensitivity profile as of December 31, 2007:

Change in		Percentage Change in
Interest Rates		Net Interest Income
(basis points)		12 Months Forward
	+200		-9.55%
	+100		-4.53%
	-100		0.11%
	-200		0.20%

The ALCO also monitors the sensitivity of the Corporation’s economic value of equity (“EVE”) due to sudden and sustained changes in market rates. The ALCO monitors the sensitivity of EVE on a percentage change basis.

The following table shows the EVE ratios as of December 31, 2007:

Change in
Interest Rates		Percentage
(basis points)		Change in EVE
	+200		-4.50	%
	+100		-1.43	%
	-100		5.18	%
	-200		12.64	%

These estimated changes in net interest income and EVE are within the policy guidelines established by the Board of Directors. In order to reduce the exposure to interest rate fluctuations and to manage liquidity, we have developed sale

19

QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK (continued)

procedures for several types of interest-sensitive assets. Generally, all long-term, fixed-rate single family residential mortgage loans underwritten according to Freddie Mac and Fannie guidelines are sold for cash upon origination. A total of $50.0 million and $50.9 million of such loans were sold to Freddie Mac, Fannie Mae and other parties during 2007 and 2006, respectively.

20

LIQUIDITY AND CAPITAL RESOURCES

“Liquidity” refers to our ability to fund loan demand and deposit withdrawal requests, to pay dividends to shareholders and to meet other commitments and contingencies. The purpose of liquidity management is to ensure sufficient cash flow to meet all of Camco’s financial commitments and to capitalize on opportunities for business expansion in the context of managing interest rate risk exposure. This ability depends on Camco’s financial strength, asset quality and the types of deposit and loan instruments offered to customers.

We monitor and assess liquidity needs daily in order to meet deposit withdrawals, loan commitments and expenses. Camco’s liquidity contingency funding plan identifies liquidity thresholds and red flags that may evidence liquidity concerns or future crises. The contingency plan details specific actions to be taken by management and the Board of Directors. It also identifies sources of emergency liquidity, both asset and liability-based, should we encounter a liquidity crisis. In conjunction with the Corporation’s asset/liability and interest rate risk management activities, we actively monitor liquidity risk and analyze various scenarios that could impact or impair Camco’s ability to access emergency funding during a liquidity crisis.

Liquid assets consist of cash and interest-bearing deposits in other financial institutions, investments and mortgage-backed securities. Approximately $45.1 million, or 49.4%, of our investment portfolio is expected to mature or prepay during 2008. While these maturities could provide a significant source of liquidity in the short term, public unit deposits and repurchase agreements limit our ability to use these funds freely due to the collateral requirements of such accounts. State and local political subdivision deposits equaled $57.5 million at December 31, 2007, and $65.8 million at December 31, 2006. We are implementing a product strategy to attract public fund deposits without the need for collateral.

Additional sources of liquidity 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 more influenced by interest rates, general economic conditions, and competition and are difficult to predict.

Approximately $303.1 million of the Corporation’s certificate of deposit portfolio is scheduled to mature during 2008. Depositors have shown a preference toward short-term certificates or other terms of less than 18 months due to the inverted yield curve environment that persisted through most of 2007. This places additional liquidity pressure on the Corporation as competition for deposits is very strong in Ohio, Kentucky and West Virginia. A material loss of these short-term deposits could force us to seek funding through contingency sources, which may negatively impact earnings.

Federal Home Loan Bank (FHLB) advances are another funding source. In the past, Camco has depended heavily on borrowings to fund balance sheet growth. While significant strategic and tactical focus is currently being placed on deposit growth, borrowings and additional borrowing capacity at the FHLB are still vital sources of liquidity and growth funding. We have approximately $97.7 million of additional borrowing capacity available as of December 31, 2007. However, our total borrowing capacity at the FHLB is dependent on the level of eligible collateral assets held by the Bank and the Bank’s credit rating with the FHLB. Our total borrowing capacity with the FHLB decreased to $296.8 million at December 31, 2007, from $300.8 million at December 31, 2006. This capacity has decreased as our one to four- family loan portfolio, the primary collateral for FHLB borrowings, has shrunk and the increase in nonperforming loans has reduced our credit rating (and thereby increased our collateral requirements) in 2007 compared to 2006. While we could pledge additional assets as collateral, the inability of the Bank to access contingency funding from the FHLB may significantly limit our growth and negatively affect earnings.

During the third and fourth quarters of 2007, credit markets and money markets endured unprecedented disruption in daily activity. Caused primarily by the impairment of securities backed by “subprime loans,” many financial institutions found they were unable to fund their normal secondary market operations (the sale of loans to other investors). While this event did not interrupt our normal liquidity management process, nor did it directly impact our liquidity position, we nonetheless are indirectly impacted by this liquidity event through the resultant interest rate environment and competition for deposits, explained more fully below.

In order to provide liquidity to banks in response to this crisis, the Federal Reserve Bank’s Federal Open Markets Committee lowered the Discount Rate and their target for the Federal Funds rate several times during the second half of 2007 and into 2008, which caused decreases in the Prime rate to which 19% of our loans are tied. Additionally, many super-regional and money center banks have been forced to seek short-term funding through retail deposits as access to their normal sources of wholesale funding is now materially impaired. These banks have offered deposit rates significantly in excess of normal deposit rates, when historically compared to U.S. Treasury and FHLB borrowing rates, exacerbating the effects of an already highly-competitive deposit market. As a result, we have not been able to reduce our marginal cost of deposits as quickly as we would need to in order to preserve our current level of net interest margin in the wake of decreasing loan yields. Additionally, our liquidity risk exposure has increased as our inability to retain and attract deposits due to higher rates offered by competitors may cause us to seek funding from additional sources, such as the FHLB or other wholesale sources, such as brokered deposits.

21

LIQUIDITY AND CAPITAL RESOURCES (continued)

We plan to increase the level of brokered deposits in early 2008 in order to reduce FHLB borrowings and secure funds that do not require collateral. Funds in excess of loan demand and available borrowing repayments will be held in short-term investments or federal funds sold. We are taking these actions to proactively prepare for the possibility of continued deterioration in the credit markets and increases in our nonperforming loans, which may reduce our borrowing capacity at the FHLB further.

The following table sets forth information regarding the Bank’s obligations and commitments to make future payments under contract as of December 31, 2007.

	Payments due by period
	Less						More
	than		1-3		3-5		than 5
	1 year		years		years		years		Total
	(In thousands)
Contractual obligations:
Operating lease obligations	$	298	$	485	$	302	$	444	$	1,529
Advances from the Federal Home Loan Bank		71,933		77,197		13,637		36,297		199,064
Repurchase agreements		16,597		320		—		—		16,917
Certificates of deposit		303,081		107,742		5,039		732		416,594
Subordinated debentures (1)		—		—		—		5,000		5,000
Ohio Equity Funds for Affordable Housing		789		2,777		700		540		4,806
Amount of commitments per period
Commitments to originate loans:
Overdraft lines of credit		857		—		—		—		857
Home equity		80,008		—		—		—		80,008
One- to four- family and multi-family loans includes Loans in process		13,991		—		—		—		13,991
Commercial includes Loans in process &
Lines of credit		19,882		—		—		—		19,882
Letters of credit		714		—		—		—		714
Total 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.

We anticipate that we will have sufficient funds available to meet our current loan commitments. Based upon historical deposit flow data, the Bank’s competitive pricing in our markets and management’s experience, we believe that a significant portion of our maturing certificates of deposit in 2008 will remain with the Bank, but we also recognize the significance of the risks discussed above.

We engage in off-balance sheet credit-related activities that could require us to make cash payments in the event that specified future events occur. The contractual amounts of these activities represent the maximum exposure to the Bank (as further described in financial statement footnote “Note I — Commitments”). However, certain off-balance sheet commitments are expected to expire or be only partially used; therefore, the total amount of commitments does not necessarily represent future cash requirements. These off-balance sheet activities are necessary to meet the financing needs of the Bank’s customers.

Ohio statutes impose certain limitations on the payment of dividends and other capital distributions by banks. Generally, absent approval of the Superintendent of Banks, such statutes limit dividend and capital distributions to earnings of the current and two preceding years. Additionally, our ability to pay dividends to stockholders is dependent on our net earnings. A continued decline in earnings, increases in loan losses, or higher regulatory capital reserve requirements may jeopardize our ability to pay dividends at current or historical levels.

22

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) and Rule 15d-15(f) under the Securities Exchange Act of 1934.

The Company’s internal control over financial reporting is a process designed under the supervision of the Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external reporting purposes in accordance with U.S. generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2007. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control — Integrated Framework. Based on the assessment, management believes that the Company’s internal control over financial reporting was effective as of December 31, 2007.

The Company’s independent auditors have issued an attestation report on management’s assessment of the Company’s internal control over financial reporting. That report appears on page 24.

23

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders

Camco Financial Corporation

We have audited the accompanying consolidated statement of financial condition of Camco Financial Corporation as of December 31, 2007 and 2006, and the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2007. We also have audited the Company’s internal control over financial reporting as of December 31, 2007, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying financial statements. Our responsibility is to express an opinion on these financial statements and an opinion on the company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Camco Financial Corporation as of December 31, 2007 and 2006, and the consolidated results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2007 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, Camco Financial Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2007, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

February 20, 2008

Auburn Hills, Michigan

24

CAMCO FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	December 31,
	2007			2006
	(In thousands, except share data)
ASSETS
Cash and due from banks	$	17,572		$	13,869
Interest-bearing deposits in other financial institutions		5,432			12,673
Cash and cash equivalents		23,004			26,542
Securities available-for-sale, at market		88,919			107,506
Securities held-to-maturity, at cost, approximate market value of $2,793 and $3,470 as of December 31, 2007 and 2006, respectively		2,769			3,449
Loans held for sale – at lower of cost or market		3,169			3,664
Loans receivable – net		812,102			818,154
Office premises and equipment – net		12,856			13,200
Real estate acquired through foreclosure		5,034			3,956
Federal Home Loan Bank stock – at cost		28,722			28,722
Accrued interest receivable		6,034			6,502
Mortgage servicing rights – at lower of cost or market		6,356			6,424
Prepaid expenses and other assets		5,231			1,537
Cash surrender value of life insurance		21,707			20,921
Goodwill		6,683			6,683
Prepaid and refundable federal income taxes		675			956
Total assets	$	1,023,261		$	1,048,216
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	692,184		$	684,782
Advances from the Federal Home Loan Bank and other borrowings		220,981			257,139
Advances by borrowers for taxes and insurance		3,627			3,484
Accounts payable and accrued liabilities		11,331			6,350
Dividends payable		1,081			1,120
Deferred federal income taxes		5,423			4,249
Total liabilities		934,627			957,124
Commitments		—			—
Stockholders’ equity
Preferred stock – $1 par value; authorized 100,000 shares; no shares outstanding		—			—
Common stock – $1 par value; authorized 14,900,000 shares; 8,834,508 and 8,832,082 shares issued at December 31, 2007 and 2006, respectively		8,835			8,832
Additional paid-in capital		59,842			59,722
Retained earnings		44,083			43,954
Accumulated 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			91,092
Total liabilities and stockholders’ equity	$	1,023,261		$	1,048,216

The accompanying notes are an integral part of these statements.

25

CAMCO FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS

	For the years ended December 31,
	2007, 2006 and 2005
	2007			2006			2005
	(In thousands, except per share data)
Interest and dividend income
Loans	$	57,448		$	54,764		$	50,165
Investment securities		4,585			4,640			4,093
Other interest-bearing accounts		3,284			3,285			2,820
Total interest income		65,317			62,689			57,078
Interest expense
Deposits		25,429			21,248			15,434
Borrowings		10,992			11,523			11,095
Total interest expense		36,421			32,771			26,529
Net interest income		28,896			29,918			30,549
Provision for losses on loans		1,495			1,440			1,480
Net interest income after provision for losses on loans		27,401			28,478			29,069
Other income
Late charges, rent and other		1,418			1,196			1,586
Title fees		652			673			752
Loan servicing fees		1,375			1,412			1,480
Gain on sale of loans		353			295			683
Mortgage servicing rights – net		(68	)		(549	)		20
Service charges and other fees on deposits		2,441			2,056			1,973
Gain on sale of investment and mortgage-backed securities		1			0			113
Loss on sale of real estate acquired through foreclosure		(297	)		(72	)		(23	)
Gain (loss) on sale of premises and equipment, net		(25	)		22			8
Total other income		5,850			5,033			6,592
General, administrative and other expense
Employee compensation and benefits		13,012			12,410			11,640
Occupancy and equipment		3,464			3,182			3,051
Data processing		1,186			1,344			1,368
Advertising		1,299			1,158			1,218
Franchise taxes		1,103			1,027			267
Other operating		6,921			5,789			5,210
Total general, administrative and other expense		26,985			24,910			22,754
Earnings before federal income taxes		6,266			8,601			12,907
Federal income taxes
Current		1,216			2,043			3,965
Deferred		549			684			176
Total federal income taxes		1,765			2,727			4,141
NET EARNINGS	$	4,501		$	5,874		$	8,766
EARNINGS PER SHARE
Basic	$	0.61		$	0.78		$	1.15
Diluted	$	0.61		$	0.78		$	1.15

The accompanying notes are an integral part of these statements.

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	$	8,766
Other 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

The accompanying notes are an integral part of these statements.

27

CAMCO FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF
STOCKHOLDERS’ EQUITY

	For the years ended December 31, 2007, 2006 and 2005
											Accumulated
						Additional					other						Total
	Shares			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	)	$	89,321
Stock options exercised		70,162			70		632		—			—			—			702
Cash dividends declared – $0.58 per share		—			—		—		(4,431	)		—			—			(4,431	)
Net earnings for the year ended December 31, 2005		—			—		—		8,766			—			—			8,766
Purchase 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	)		90,763
Stock options exercised		2,243			2		18		—			—			—			20
Cash dividends declared – $0.60 per share		—			—		—		(4,489	)		—			—			(4,489	)
FAS 123 R – Stock Option Expense		—			—		137		—			—			—			137
Net earnings for the year ended December 31, 2006		—			—		—		5,874			—			—			5,874
Purchase of treasury shares		(117,900	)		—		—		—			—			(1,651	)		(1,651	)
Unrealized gains on securities designated as available for sale, net of related tax benefits		—			—		—		—			438			—			438
Balance at December 31, 2006		7,463,056			8,832		59,722		43,954			(1,225	)		(20,191	)		91,092
Stock options exercised		2,427			3		28		—			—			—			31
Cash dividends declared – $0.60 per share		—			—		—		(4,372	)		—			—			(4,372	)
FAS 123R – Stock Option Expense		—			—		92		—			—			—			92
Net earnings for the year ended December 31, 2007		—			—		—		4,501			—			—			4,501
Purchase 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			—			1,213
Balance at December 31, 2007		7,155,595		$	8,835	$	59,842	$	44,083		$	(12	)	$	(24,114	)	$	88,634

The accompanying notes are an integral part of these statements.

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		$	8,766
Adjustments 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			466
Amortization of mortgage servicing rights – net		747			1,252			972
Depreciation and amortization		1,434			1,247			1,198
Amortization of purchase accounting adjustments – net		—			89			89
Stock option expense (FAS 123R)		92			137			—
Provision for losses on loans		1,495			1,440			1,480
Provision for losses on real estate acquired through foreclosure		—			99			95
Amortization of deferred loan origination fees		84			176			96
Loss on sale of real estate acquired through foreclosure		297			72			23
Gain 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			70,417
Tax benefits related to exercise of stock options		—			—			111
Increase (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	)		5,101
Accounts payable and other liabilities		(250	)		435			(7	)
Federal income taxes		358			684			176
Net cash provided by operating activities		4,982			6,190			16,475
Cash flows provided by (used in) investing activities:
Proceeds from maturities of investment securities		52,720			6,260			10,375
Proceeds from sale of investment securities designated as available for sale		3			—			302
Purchase of securities designated as available for sale		(43,729	)		(15,881	)		(39,443	)
Principal repayments on mortgage-backed securities		11,997			12,832			21,030
Loan disbursements		(245,835	)		(230,127	)		(331,469	)
Purchases of loans		(3,021	)		(3,698	)		(11,141	)
Principal repayments on loans		249,922			250,409			323,314
Purchase of premises and equipment		(1,131	)		(3,014	)		(1,121	)
Proceeds from sale of office premises and equipment		16			158			9
Proceeds from sale of real estate acquired through foreclosure		2,454			1,119			3,362
Additions 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			56,500
Proceeds 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	)		12,866
Dividends paid on common stock		(4,411	)		(4,471	)		(4,438	)
Proceeds from exercise of stock options		31			20			591
Purchase of treasury stock		(3,923	)		(1,651	)		(2,195	)
Decrease in advances by borrowers for taxes and insurance		143			235			219
Net 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			42,894
Cash and cash equivalents at end of year	$	23,004		$	26,542		$	33,085
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest on deposits and borrowings	$	36,687		$	32,473		$	26,511
Income 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		$	3,725
Issuance of mortgage loans upon sale of real estate acquired through foreclosure	$	2,083		$	1,448		$	1,137
Unrealized 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		$	992
Supplemental disclosure of noncash financing activities:
Dividends declared but unpaid	$	1,081		$	1,120		$	1,102

The accompanying notes are an integral part of these statements.

30

CAMCO FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2007, 2006 and 2005

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Camco Financial Corporation (“Camco” or the “Corporation”) is a financial holding company whose business activities are limited primarily to holding the common stock of Advantage Bank (“Advantage” or the “Bank”) and Camco Title Agency (“Camco Title”). Advantage conducts a general banking business within Ohio, West Virginia and northern Kentucky which consists of attracting deposits from the general public and applying those funds to the origination of loans for residential, consumer and nonresidential purposes. Advantage’s profitability is significantly dependent on net interest income, which is the difference between interest income generated from interest-earning assets (i.e. loans and investments) and the interest expense paid on interest-bearing liabilities (i.e. customer deposits and borrowed funds). Net interest income is affected by the relative amounts of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by Advantage can be significantly influenced by a number of factors, such as governmental monetary policy, that are outside of management’s control.

The consolidated financial information presented herein has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and general accounting practices within the financial services industry. In preparing financial statements in accordance with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from such estimates.

The following is a summary of the Corporation’s significant accounting policies which have been consistently applied in the preparation of the accompanying consolidated financial statements. Some items in the prior-year financial statements were reclassified to conform to the current year’s presentation.

1. Principles of Consolidation

The consolidated financial statements include the accounts of the Corporation and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated.

2. Investment Securities and Mortgage-Backed Securities

The Corporation accounts for investment and mortgage-backed securities in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 115 “Accounting for Certain Investments in Debt and Equity Securities.” SFAS No. 115 requires that investments be categorized as held to maturity, trading, or available for sale. Securities classified as held to maturity are carried at cost only if the Corporation has the positive intent and ability to hold these securities to maturity. Securities designated as available for sale are carried at fair value with resulting unrealized gains or losses recorded to stockholders’ equity. Investment and mortgage-backed securities are classified as held to maturity or available for sale upon acquisition. Realized gains and losses on sales of securities are recognized using the specific identification method. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

3. Loans Receivable

Loans held in portfolio are stated at the principal amount outstanding, adjusted for deferred loan origination fees and costs and the allowance for loan losses.

Interest is accrued as earned unless the collectability of the loan is in doubt. Uncollectible interest on loans that are contractually past due is charged off, or an allowance is established based on management’s periodic evaluation. The allowance is established by a charge to interest income equal to all interest previously accrued and not received, and income is subsequently recognized only to the extent that cash payments are received until, in management’s judgment, the borrower’s ability to make periodic interest and principal payments has returned to normal, in which case the loan is returned to accrual status.

Loans held for sale are carried at the lower of cost (less principal payments received) or fair value (market value), calculated on an aggregate basis. At December 31, 2007 and 2006, loans held for sale were carried at cost.

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

The Corporation accounts for loan origination fees and costs in accordance with SFAS No. 91, “Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases.” Pursuant to the provisions of SFAS No. 91, all loan origination fees received, net of certain direct origination costs, are deferred on a loan-by-loan basis and amortized to interest income using the interest method, giving effect to actual loan prepayments. Additionally, SFAS No. 91 generally limits the definition of loan origination costs to the direct costs attributable to originating a loan, i.e., principally actual personnel costs.

Fees received for loan commitments are deferred and amortized over the life of the related loan using the interest method.

5. Allowance for Loan Losses

It is the Corporation’s policy to provide valuation allowances for estimated losses on loans based upon past loss experience, current trends in the level of delinquent and problem loans, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral and current economic conditions in the Bank’s primary market areas. When the collection of a loan becomes doubtful, or otherwise troubled, the Corporation records a charge-off or an allowance equal to the difference between the fair value of the property securing the loan and the loan’s carrying value. Such provision is based on management’s estimate of the fair value of the underlying collateral, taking into consideration the current and currently anticipated future operating or sales conditions. As a result, such estimates are particularly susceptible to changes that could result in a material adjustment to results of operations in the near term. Recovery of the carrying value of such loans is dependent to a great extent on economic, operating, and other conditions that may be beyond the Corporation’s control.

The Corporation accounts for impaired loans in accordance with SFAS No. 114, “Accounting by Creditors for Impairment of a Loan.” SFAS No. 114 requires that impaired loans be measured based upon the present value of expected future cash flows discounted at the loan’s effective interest rate or, as an alternative, at the loan’s observable market price or fair value of the collateral.

A loan is defined under SFAS No. 114 as impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. In applying the provisions of SFAS No. 114, the Corporation considers its investment in owner-occupied one- to four-family residential loans, home equity lines of credit and consumer installment loans to be homogeneous and therefore excluded from separate identification for evaluation of impairment. With respect to the Corporation’s investment in multi-family, commercial and nonresidential loans, and its evaluation of any impairment thereon, such loans are generally collateral-dependent and as a result are carried as a practical expedient at the lower of cost or fair value. It is the Corporation’s policy to charge off unsecured credits that are more than ninety days delinquent.

The Bank’s impaired loan information is as follows at December 31:

	2007		2006
At December 31:
Impaired loans with related allowance	$	12,580	$	2,838
Impaired loans with no related allowance		1,643		4,678
Total impaired loans	$	14,223	$	7,516
Allowance on impaired loans	$	1,876	$	753

	2007		2006		2005
For the year ended December 31:
Average balance of impaired loans	$	11,467	$	4,213	$	2,770
Cash basis interest income recognized on impaired loans	$	674	$	192	$	189

The allowance for impaired loans is included in the Bank’s overall allowance for credit losses. The provision necessary to increase this allowance is included in the Bank’s overall provision for losses on loans.

32

6. Real Estate Acquired Through Foreclosure

Real estate acquired through foreclosure is carried at the lower of the loan’s unpaid principal balance (cost) or fair value less estimated selling expenses at the date of acquisition. Real estate loss provisions are recorded if the fair value of the property subsequently declines below the amount determined at the recording date. In determining the lower of cost or fair value at acquisition, costs relating to development and improvement of property are capitalized. Costs relating to holding real estate acquired through foreclosure, net of rental income, are charged against earnings as incurred.

7. Office Premises and Equipment

Office premises and equipment are carried at cost and include expenditures which extend the useful lives of existing assets. Maintenance, repairs and minor renewals are expensed as incurred. For financial reporting, depreciation and amortization are provided on the straight-line method over the useful lives of the assets, estimated to be ten to fifty years for buildings and improvements and three to twenty-five years for furniture, fixtures and equipment. An accelerated depreciation method is used for tax reporting purposes.

8. Mortgage Servicing Rights

The Corporation accounts for mortgage servicing rights in accordance with SFAS No. 140 “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,” which requires that the Corporation recognize, as separate assets, rights to service mortgage loans for others, regardless of how those servicing rights are acquired. An institution that acquires mortgage servicing rights through either the purchase or origination of mortgage loans and sells those loans with servicing rights retained must allocate some of the cost of the loans to the mortgage servicing rights.

SFAS No. 140 requires that capitalized mortgage servicing rights and capitalized excess servicing receivables be assessed for impairment. Impairment is measured based on fair value. The mortgage servicing rights recorded by the Bank, calculated in accordance with the provisions of SFAS No. 140, segregated into pools for valuation purposes, using as pooling criteria the loan term and coupon rate.

Once pooled, each grouping of loans is evaluated on a discounted earnings basis to determine the present value of future earnings that a purchaser could expect to realize from each portfolio. Earnings are projected from a variety of sources including loan servicing fees, interest earned on float, net interest earned on escrows, miscellaneous income, and costs to service the loans. The present value of future earnings is the “economic” value for the pool, i.e., the net realizable present value to an acquirer of the acquired servicing.

The Corporation recorded amortization related to mortgage servicing rights totaling approximately $748,000, $1.3 million and $972,000, for the years ended December 31, 2007, 2006 and 2005, respectively. The carrying value of the Corporation’s mortgage servicing rights, which approximated their fair value, totaled approximately $6.4 million for the years ended December 31, 2007 and 2006 respectively. Fair value was determined using discount rates ranging from 9.0% to 12.0% each year, and prepayment speeds ranging from 4.2% to 24.6% in 2007 and from 3.7% to 25.4% in 2006.

At December 31, 2007 and 2006, the Bank was servicing mortgage loans of approximately $516.0 and $536.0 million, respectively, that have been sold to the Federal Home Loan Mortgage Corporation, Federal National Mortgage Association and other investors.

9. Goodwill

The Corporation accounts for acquisitions pursuant to SFAS No. 142 “Goodwill and Intangible Assets,” which prescribes accounting for all purchased goodwill and intangible assets. In accordance with that Statement, acquired goodwill is not amortized, but is tested for impairment at the reporting unit level annually and whenever an impairment indicator arises. Goodwill has been assigned to Advantage Bank as the reporting unit that is expected to benefit from the goodwill.

Camco evaluated the unamortized goodwill balance during 2007, 2006 and 2005 in accordance with the provisions of SFAS No. 142 via independent third-party appraisal. The evaluations showed no indication of impairment.

10. Federal Income Taxes

The Corporation accounts for federal income taxes in accordance with SFAS No. 109, “Accounting for Income Taxes.” In accordance with SFAS No. 109, a deferred tax liability or deferred tax asset is computed by applying the current statutory

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)

tax rates to net taxable or deductible temporary differences between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future periods. Deferred tax assets are recorded only to the extent that the amount of net deductible temporary differences or carryforward attributes may be utilized against current period earnings, carried back against prior years’ earnings, offset against taxable temporary differences reversing in future periods, or utilized to the extent of management’s estimate of future taxable income. A valuation allowance is provided for deferred tax assets to the extent that the value of net deductible temporary differences and carryforward attributes exceeds management’s estimates of taxes payable on future taxable income. Deferred tax liabilities are provided on the total amount of net temporary differences taxable in the future.

Deferral of income taxes results primarily from different methods of accounting for deferred loan origination fees and costs, mortgage servicing rights, Federal Home Loan Bank stock dividends, deferred compensation and the general loan loss allowance. A temporary difference is also recognized for depreciation expense computed using accelerated methods for federal income tax purposes.

11. 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. Diluted earnings per share is not computed for periods in which an operating loss is sustained. The computations were as follows for the years ended December 31:

	For the years ended
	2007		2006		2005
	(In thousands, except per share information)
BASIC:
Net Earnings	$	4,501	$	5,874	$	8,766
Weighted average common shares outstanding		7,327		7,506		7,645
Earnings per share - Basic	$	0.61	$	0.78	$	1.15
DILUTED:
Net Earnings	$	4,501	$	5,874	$	8,766
Weighted average common shares outstanding		7,327		7,506		7,645
Dilutive effect of stock options		1		2		4
Total common shares and dilutive potential common shares		7,328		7,508		7,649
Earnings per share - Diluted	$	0.61	$	0.78	$	1.15

Options to purchase 283,557, 287,752 and 207,771 shares of common stock at respective weighted-average exercise prices of $15.48, $15.52 and $16.08 were outstanding at December 31, 2007, 2006 and 2005, respectively, but were excluded from the computation of diluted earnings per share for those years because the exercise price was greater than the average market price of the common shares.

12. Stock Option Plans

Effective January 1, 2006, the Corporation adopted SFAS No. 123R, “Accounting for Stock-Based Compensation,” which contains a fair-value based method for valuing stock-based compensation that measures compensation cost at the grant date based on the fair value of the award. Compensation is then recognized over the service period, which is usually the vesting period. Prior to January 1, 2006, the Corporation utilized APB Opinion No. 25 and related Interpretations in accounting for its stock option plans. Accordingly, no compensation cost was recognized for the plans in 2005. Had compensation cost for the Corporation’s stock option plans been determined based on the fair value at the grant dates for awards under the plans

34

consistent with SFAS No. 123R, the Corporation’s net earnings and earnings per share for the year ended December 31, 2005, would have been reported as the pro forma amounts indicated below:

	2005
	(In thousands,
	except per share data)
Net earnings As reported	$	8,766
Add: 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	$	8,645
Earnings per share
Basic As reported	$	1.15
Stock-based compensation, net of tax		(.02	)
Pro-forma	$	1.13
Diluted As reported		1.15
Stock-based compensation, net of tax		(.02	)
Pro-forma	$	1.13

The fair value of each option grant is estimated on the date of grant using the modified Black-Scholes options-pricing model with the following assumptions used for grants during 2007, 2006 and 2005: dividend yield of 4.8%, 4.0% and 3.8%, respectively; expected volatility of 11.98%, 15.16%, and 18.76%, respectively; a risk-free interest rate of 4.81%, 4.57% and 4.22%, respectively; and an expected life of ten years for all grants.

A summary of the status of the Corporation’s stock option plans as of December 31, 2007, 2006 and 2005, and changes during the years ending on those dates is presented below:

	2007					2006					2005
				Weighted					Weighted					Weighted
				average					average					average
				exercise					exercise					exercise
	Shares			price		Shares			price		Shares			price
Outstanding at beginning of year		304,874		$	15.20		224,636		$	15.71		218,324		$	12.91
Granted		26,920			12.34		87,013			14.08		87,240			16.51
Exercised		(2,427	)		12.50		(2,243	)		8.92		(70,162	)		8.43
Forfeited		(11,129	)		14.67		(4,532	)		15.23		(10,766	)		12.85
Outstanding at end of year		318,238		$	15.10		304,874		$	15.20		224,636		$	15.71
Options exercisable at year-end		254,717		$	15.32		222,333		$	15.37		138,305		$	15.22
Weighted-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)

The following information applies to options outstanding at December 31, 2007:

	Options outstanding						Options exercisable
			Weighted-average		Weighted-				Weighted-
			remaining		average				average
Range of	Number		contractual		exercise		Number		exercise
exercise 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		16.06
		318,238		6.1	$	15.10		254,717	$	15.32

A summary of unvested options as of, and changes during the year ended, December 31, 2007, were as follows:

	Number
Unvested options:
Beginning of period		82,541
Granted		26,920
Forfeited		(5,831	)
Vested during the period		(40,109	)
Unvested options at December 31		63,521

The total intrinsic value of options exercised during the years ended December 31, 2007, 2006, and 2005, was $2,000, $11,000, and $421,000, respectively.

As of December 31, 2007, there was $126,600 of total unrecognized compensation cost related to nonvested stock options. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 2.6 years.

13. Fair Value of Financial Instruments

SFAS No. 107, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of fair value information about financial instruments, whether or not recognized in the consolidated statement of financial condition, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. SFAS No. 107 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Corporation.

The following methods and assumptions were used by the Corporation in estimating its fair value disclosures for financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Cash and Cash Equivalents: The carrying amount reported in the consolidated statements of financial condition for cash and cash equivalents is deemed to approximate fair value.

Investment Securities and Mortgage-backed Securities: Fair values for investment securities and mortgage-backed securities are based on quoted market prices and dealer quotes.

Loans Held for Sale: Fair value for loans held for sale is the contracted sales price of loans committed for delivery, which is determined on the date of sale commitment.

36

Loans Receivable: The loan portfolio has been segregated into categories with similar characteristics, such as one- to four-family residential real estate, multi-family residential real estate, installment and other. These loan categories were further delineated into fixed-rate and adjustable-rate loans. The fair values for the resultant loan categories were computed via discounted cash flow analysis, using current interest rates offered for loans with similar terms to borrowers of similar credit quality.

Federal Home Loan Bank stock: The carrying amount presented in the consolidated statements of financial condition is deemed to approximate fair value.

Cash Surrender Value of Life Insurance: The carrying amount presented in the consolidated statements of financial condition is deemed to approximate fair value.

Mortgage Servicing Rights: See item 8 in Note A.

Deposits: The fair values of deposits with no stated maturity, such as money market demand deposits, savings and NOW accounts, are deemed to equal the amount payable on demand as of December 31, 2007 and 2006. The fair value of fixed-rate certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities.

Advances from the Federal Home Loan Bank: The fair value of these advances is estimated using the rates currently offered for similar advances of similar remaining maturities or, when available, quoted market prices.

Repurchase Agreements and Subordinated Debentures: The fair value is based on the discounted value of contractual cash flows using rates currently offered for similar maturities.

Accrued Interest and Advances by Borrowers for Taxes and Insurance: The carrying amount is deemed to approximate fair value.

Commitments to Extend Credit: For fixed-rate and adjustable-rate loan commitments, the fair value estimate considers the difference between current levels of interest rates and committed rates. At December 31, 2007 and 2006, the fair value of loan commitments was not material.

Based on the foregoing methods and assumptions, the carrying value and fair value of the Corporation’s financial instruments are as follows:

	December 31,
	2007				2006
	Carrying		Fair		Carrying		Fair
	value		value		value		value
	(In thousands)
Financial assets
Cash and cash equivalents	$	23,004	$	23,004	$	26,542	$	26,542
Investment securities available for sale		88,919		88,919		107,506		107,506
Investment securities held to maturity		2,769		2,793		3,449		3,470
Loans held for sale		3,169		3,194		3,664		3,691
Loans receivable		812,102		814,210		818,154		826,389
Federal Home Loan Bank stock		28,722		28,722		28,722		28,722
Cash surrender value of life insurance		21,707		21,707		20,921		20,921
Accrued interest receivable		6,034		6,034		6,502		6,502
Mortgage servicing rights		6,356		6,642		6,424		6,519
Financial liabilities
Deposits	$	692,184	$	694,484	$	684,782	$	686,317
Advances from the Federal Home Loan Bank		199,064		202,483		245,288		244,403
Repurchase agreements		16,917		16,917		11,851		11,857
Subordinated debentures		5,000		4,830		—		—
Advances by borrowers for taxes and insurance		3,627		3,627		3,484		3,484
Accrued 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

Cash and cash equivalents consist of cash and due from banks and interest-bearing deposits in other financial institutions with original maturities of three months or less.

15. Advertising

Advertising costs are expensed when incurred.

16. Effects of Recent Accounting Pronouncements

In July 2006, the FASB issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes: An Interpretation of FASB Statement No. 109,” (FIN 48) which attempts to set out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. This interpretation of FASB Statement No. 109 uses a two-step approach wherein a tax benefit is recognized if a position is more likely than not to be sustained. The amount of the benefit is then measured to be the highest tax benefit that is greater than 50 percent likely to be realized. FIN 48 also sets out disclosure requirements to enhance transparency of an entity’s tax reserves. The Corporation adopted FIN 48 on January 1, 2007 with no impact on opening retained earnings or earnings during 2007.

In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements.” This statement clarifies the definition of fair value, establishes a framework for measuring fair value, and expands the disclosures on fair value measurements. This Statement applies to other accounting pronouncements that require or permit fair value measurements and does not require any new fair value measurements. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. The Corporation has not determined the impact the adoption of SFAS 157 will have on the financial statements.

In September 2006, the FASB ratified the Emerging Issues Task Force’s (EITF) Issue 06-4, Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements, which requires companies to recognize a liability and related compensation costs for endorsement split-dollar life insurance policies that provide a benefit to an employee extending to postretirement periods. The liability should be recognized based on the substantive agreement with the employee. This Issue is effective beginning January 1, 2008. The Issue can be applied as either a change in accounting principle through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, or a change in accounting principle through retrospective application to all periods. The Corporation has estimated the impact the adoption of Issue 06-4 will reduce retained earnings by $832,000 upon adoption. Related compensation cost in 2008 is estimated to be $45,000.

38

NOTE B - INVESTMENT SECURITIES

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of investment securities at December 31, 2007 and 2006 are as follows:

	2007
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
	(In thousands)
Available for sale:
U.S. Government sponsored enterprises	$	37,519	$	267	$	4	$	37,782
Municipal bonds		210		2		—		212
Corporate equity securities		157		11		4		164
Mortgage-backed securities		51,051		167		457		50,761
Total investment securities available for sale	$	88,937	$	447	$	465	$	88,919
Held to maturity:
Municipal bonds	$	567	$	24	$	—	$	591
Mortgage-backed securities		2,202		13		13		2,202
Total investment securities held to maturity	$	2,769	$	37	$	13	$	2,793

	2006
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
	(In thousands)
Available for sale:
U.S. Government sponsored enterprises	$	55,962	$	2	$	386	$	55,578
Municipal bonds		291		—		—		291
Corporate equity securities		159		25		—		184
Mortgage-backed securities		52,950		24		1,521		51,453
Total investment securities available for sale	$	109,362	$	51	$	1,907	$	107,506
Held to maturity:
Municipal bonds	$	710	$	26	$	—	$	736
Mortgage-backed securities		2,739		12		17		2,734
Total investment securities held to maturity	$	3,449	$	38	$	17	$	3,470

The amortized cost and estimated fair value of investment securities at December 31, 2007 by contractual term to maturity are shown below.

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 maturity
			Estimated				Estimated
	Amortized		fair		Amortized		fair
	cost		value		cost		value
	(In thousands)
Due in one year or less	$	23,625	$	23,652	$	225	$	227
Due after one year through five years		14,104		14,342		252		261
Due after five years through ten years		—		—		—		—
Due after ten years		—		—		90		103
Total U.S. Government sponsored enterprises	$	37,729	$	37,994	$	567	$	591
Due 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		174
Due after ten years		16,509		16,399		2,028		2,028
Total mortgage-backed securities	$	51,051	$	50,761	$	2,202	$	2,202
Corporate equity securities	$	157	$	164	$	—	$	—
Total	$	88,937	$	88,919	$	2,769	$	2,793

Proceeds from sales of investment securities during the years ended December 31, 2007, 2006 and 2005, totaled $3,000, $0 and $302,000 respectively, resulting in gross realized gains of $1,000, $0 and $113,000 in those respective years.

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2007 and 2006, are as follows:

	2007
	Less than 12 months				More than 12 months
	Fair		Unrealized		Fair		Unrealized
Description of securities:	value		losses		value		losses
	(In thousands)
Available for sale:
U.S. Government sponsored enterprises	$	3,493	$	2	$	2,997	$	2
Corporate equity securities		164		4		—		—
Mortgage-backed securities		36		—		36,202		457
Held to maturity:
Mortgage-backed securities		348		2		674		11
Total temporarily impaired securities	$	4,041	$	8	$	39,873	$	470

Management has the intent and ability to hold these securities for the foreseeable future and the decline in the fair value is primarily due to an increase in market interest rates. The fair values are expected to recover as securities approach maturity dates.

40

	2006
	Less than 12 months				More than 12 months
	Fair		Unrealized		Fair		Unrealized
Description of securities:	value		losses		value		losses
	(In thousands)
Available for sale:
U.S. Government sponsored enterprises	$	9,957	$	15	$	43,623	$	371
Mortgage-backed securities		42		—		43,524		1,521
Held to maturity:
Mortgage-backed securities		293		—		6,103		17
Municipal bonds		141		—		80		—
Total temporarily impaired securities	$	10,433	$	15	$	93,330	$	1,909

Management has the intent and ability to hold these securities for the foreseeable future and the decline in the fair value is primarily due to an increase in market interest rates. The fair values are expected to recover as securities approach maturity dates.

At December 31, 2007 and 2006, approximately $86.2 million and $90.8 million of securities, respectively, was pledged in accordance with federal and state requirements to secure deposits and repurchase agreements .

NOTE C - LOANS RECEIVABLE

	2007			2006
	(In thousands)
Conventional real estate loans:
Existing residential properties	$	435,431		$	474,109
Multi-family		40,589			43,392
Nonresidential real estate		126,437			105,577
Construction		45,677			42,654
Commercial		41,551			35,287
Home equity lines of credit		121,619			116,436
Consumer, education and other loans		7,255			7,851
Total		818,559			825,306
Increase (decrease) due to:
Unamortized yield adjustments		166			(8	)
Allowance for loan losses		(6,623	)		(7,144	)
Loans receivable – net	$	812,102		$	818,154

The Bank, in the ordinary course of business, has granted loans to certain of its directors, executive officers, and their related interests. Such loans are made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than normal risk of collectability. The aggregate dollar amount of these loans totaled approximately $1.1 million and $924,000 at December 31, 2007 and 2006, respectively. During 2007, $5,000 of new related party loans were made and repayments totaled $55,000. In 2007, the related party loans increased by $251,000 due to additions of executive officers.

Approximately $304.6 million and $367.9 million of 1-4 family loans were pledged as collateral for Federal Home Loan Bank advances at December 31, 2007 and 2006, respectively.

41

CAMCO FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2007, 2006 and 2005

NOTE D - ALLOWANCE FOR LOAN LOSSES

Activity in the allowance for loan losses is summarized as follows for the years ended December 31:

	2007			2006			2005
	(In thousands)
Balance at beginning of year	$	7,144		$	6,959		$	6,476
Provision for losses on loans		1,495			1,440			1,480
Charge-offs of loans		(2,097	)		(1,439	)		(1,280	)
Recoveries		81			184			283
Balance at end of year	$	6,623		$	7,144		$	6,959

Nonaccrual and nonperforming loans totaled approximately $24.0 million, $17.7 million and $13.9 million at December 31, 2007, 2006 and 2005, respectively. Interest income that would have been recognized had such nonaccrual loans performed pursuant to contractual terms totaled approximately $1.5 million, $865,000 and $685,000 for the years ended December 31, 2007, 2006 and 2005, respectively.

NOTE E - OFFICE PREMISES AND EQUIPMENT

Office premises and equipment at December 31, is summarized as follows:

	2007		2006
	(In thousands)
Land	$	2,120	$	2,120
Buildings and improvements		13,205		13,140
Furniture, fixtures and equipment		9,530		9,434
		24,855		24,694
Less accumulated depreciation and amortization		11,999		11,494
	$	12,856	$	13,200

NOTE F - DEPOSITS

Deposit balances by type and weighted-average interest rate at December 31, 2007 and 2006, are summarized as follows:

	2007					2006
	Amount		Rate			Amount		Rate
	(Dollars in thousands)
Noninterest-bearing checking accounts	$	35,755		—	%	$	31,706		—	%
NOW accounts		91,132		1.57			94,722		1.36
Money market demand accounts		111,740		3.57			89,383		3.59
Passbook and statement savings accounts		36,963		0.27			47,997		0.26
Certificates of deposit		416,594		4.80			420,974		4.62
Total deposits	$	692,184		3.68	%	$	684,782		3.52	%

At December 31, 2007 and 2006, the Corporation had certificate of deposit accounts with balances in excess of $100,000 totaling $106.3 million and $101.1 million, respectively.

42

The contractual maturities of outstanding certificates of deposit are summarized as follows at December 31, 2007:

Year ending December 31:
	(In thousands)
2008	$	303,081
2009		99,520
2010		8,222
2011		2,765
2012		2,274
Thereafter		732
Total certificate of deposit accounts	$	416,594

NOTE G - ADVANCES FROM THE FEDERAL HOME LOAN BANK AND OTHER BORROWINGS

The following table summarizes the types of advances from the Federal Home Loan Bank of Cincinnati (FHLB) at December 31:

				Weighted-
	Weighted-			average
2007	average rate			maturity (years)		Balance
						(In thousands)
Overnight repurchase-based		4.10	%		—	$	18,700
Fixed-rate, interest only		4.52			1.18		104,000
Fixed-rate, amortizing		5.77			5.89		5,364
Fixed-rate, interest only, convertible		3.85			4.86		46,000
Fixed-rate, interest only, putable		4.39			5.43		25,000
Total		4.34	%		2.58	$	199,064

				Weighted-
	Weighted-			average
2006	average rate			maturity (years)		Balance
						(In thousands)
Overnight repurchase-based		5.18	%		—	$	42,500
Fixed-rate, interest only		4.14			1.51		123,000
Fixed-rate, amortizing		5.84			5.28		8,788
Fixed-rate, interest only, convertible		3.81			6.09		71,000
Total		4.28	%		2.71	$	245,288

Convertible fixed-rate advances may be converted to floating-rate advances, on a quarterly basis, at the option of the FHLB. Putable fixed-rate advances may be terminated, on a quarterly basis after a fixed period of time, at the option of the FHLB. The Corporation may only repay convertible and putable advances upon conversion or termination by the FHLB without penalty, prior to maturity.

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)

The following table summarizes short-term overnight borrowings from the FHLB during the years ended December 31:

				Average		Highest month
	Weighted-			balance		end balance
	average rate			outstanding		outstanding
				(In thousands)
2007		5.18	%	$	36,381	$	55,300
2006		4.96			38,566		63,000

Advances from the FHLB were collateralized at December 31, 2007, by a blanket agreement using 100% of the Bank’s one- to four- family and multi-family mortgage portfolios, the Bank’s investment in FHLB stock, and the Bank’s home equity line of credit portfolio. The contractual maturities of FHLB advances at December 31, 2007 are as follows:

Maturing year
ending December 31,	Interest rate range
			(Dollars in thousands)
2008		2.90%-7.00%	$	71,933
2009		2.78%-7.00%		56,840
2010		3.01%-7.00%		20,357
2011		3.25%-7.00%		3,330
2012		3.25%-7.00%		10,307
Thereafter		2.66%-7.00%		36,297
			$	199,064

In July 2007, the Corporation formed a special purpose entity, Camco Statutory Trust I (Trust), for the sole purpose of issuing $5.0 million trust preferred securities. Additionally, Camco issued subordinated debentures to the Trust in exchange for the proceeds of the offering of the trust preferred securities. The subordinated debentures represent the sole asset of the Trust. The subordinated debentures are due on September 15, 2037 (Due Date). The subordinated debentures carry a fixed rate of interest of 6.648% until September 15, 2012, at which point the interest rate becomes variable at 133 basis points over the three month LIBOR rate. The Corporation may redeem the subordinated debentures any time prior to the Due Date as follows:

Call date	Terms
Prior to 9/15/2008	Callable at 103.525% of par
9/15/2008	Callable at 103.140% of par
9/15/2009	Callable at 102.355% of par
9/15/2010	Callable at 101.570% of par
9/15/2011	Callable at 100.785% of par
9/15/2012	Callable until Due Date at par

Obligations for securities sold under agreements to repurchase were collateralized at December 31, 2007 and 2006, by investment securities with a book value including accrued interest of approximately $18.8 million and $14.9 million and a market value of approximately $18.8 million and $14.7 million, respectively. The maximum balance of repurchase agreements outstanding at any month-end during the years ended December 31, 2007 and 2006, was $16.9 million and $14.3 million, respectively, and the average month-end balance outstanding for 2007 and 2006 was approximately $13.7 million and $12.3 million, respectively.

44

NOTE H - FEDERAL INCOME TAXES

A reconciliation of the rate of taxes which are payable at the federal statutory rate are summarized as follows:

	2007			2006			2005
	(In thousands)
Federal income taxes computed at the expected statutory rate	$	2,130		$	2,924		$	4,389
Increase (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			32
Federal income tax provision per consolidated financial statements	$	1,765		$	2,727		$	4,141

The components of the Corporation’s net deferred tax liability at December 31 is as follows:

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			2,429
Deferred income		21			358
Deferred compensation		1,075			1,007
Deferred loan fees		—			5
Other assets		137			17
Unrealized losses on securities designated as available for sale		6			631
Total deferred tax assets		3,491			4,447
Net deferred tax liability	$	(5,423	)	$	(4,249	)

For years prior to 1996, the Bank was allowed a special bad debt deduction generally limited to 8% of otherwise taxable income, subject to certain limitations based on aggregate loans and savings account balances at the end of the year. If the amounts that qualified as deductions for federal income taxes are later used for purposes other than for bad debt losses, including distributions in liquidation, such distributions will be subject to federal income taxes at the then current corporate income tax rate. The percentage of earnings bad debt deduction had accumulated to approximately $12.1 million as of December 31, 2007. The amount of the unrecognized deferred tax liability relating to the cumulative bad debt deduction was approximately $4.1 million at December 31, 2007.

NOTE I - COMMITMENTS

The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers, including commitments to extend credit. Such commitments involve, to varying degrees,

45

CAMCO FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2007, 2006 and 2005

NOTE I - COMMITMENTS(continued)

elements of credit and interest-rate risk in excess of the amount recognized in the consolidated statement of financial condition. The contract or notional amounts of the commitments reflect the extent of the Bank’s involvement in such financial instruments.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as those utilized for on-balance-sheet instruments.

At December 31, 2007, the Bank had outstanding commitments to originate fixed-rate loans of approximately $17.3 million and adjustable-rate loans of approximately $17.4 million. Additionally, the Bank had unused lines of credit under home equity and other loans of $80.0 million at December 31, 2007, and stand-by letters of credit of $714,000. Management believes that all loan commitments are able to be funded through cash flow from operations and existing liquidity. Fees received in connection with these commitments have not been recognized in earnings.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral on loans may vary but the preponderance of loans granted generally include a mortgage interest in real estate as security.

The Corporation has entered into lease agreements for office premises and equipment under operating leases which expire at various dates through the year ended December 31, 2017. The following table summarizes minimum payments due under lease agreements by year:

Year ending December 31,
	(In thousands)
2008	$	298
2009		254
2010		231
2011		159
2012		143
2013 and thereafter		444
	$	1,529

Rental expense under operating leases totaled approximately $423,000, $346,000 and $274,000 for the years ended December 31, 2007, 2006 and 2005, respectively.

NOTE J - REGULATORY CAPITAL

Camco and Advantage are subject to the regulatory capital requirements of the Federal Reserve Board (the “FRB”) and Advantage is subject to the requirements of the Federal Deposit Insurance Corporation (the “FDIC”). Failure to meet minimum capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Corporation and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

The FRB and FDIC have adopted risk-based capital ratio guidelines to which the Corporation is subject. The guidelines establish a systematic analytical framework that makes regulatory capital requirements more sensitive to differences in risk profiles among banking organizations. Risk-based capital ratios are determined by allocating assets and specified off-balance

46

sheet commitments to four risk-weighting categories, with higher levels of capital being required for the categories perceived as representing greater risk.

These guidelines divide the capital into two tiers. The first tier (“Tier I”) includes common equity, certain non-cumulative perpetual preferred stock (excluding auction rate issues) and minority interests in equity accounts of consolidated subsidiaries, less goodwill and certain other intangible assets (except mortgage servicing rights and purchased credit card relationships, subject to certain limitations). Supplementary (“Tier II”) capital includes, among other items, cumulative perpetual and long-term limited-life preferred stock, mandatory convertible securities, certain hybrid capital instruments, term subordinated debt and the allowance for loan losses, subject to certain limitations, less required deductions. Banks and financial holding companies are required to maintain a total risk-based capital ratio of 8%, of which 4% must be Tier I capital. The regulatory agencies may, however, set higher capital requirements when particular circumstances warrant. Banks experiencing or anticipating significant growth are expected to maintain capital ratios, including tangible capital positions, well above the minimum levels.

During 2007, management was notified by the FDIC that Advantage was categorized as “well-capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized” Camco and Advantage must maintain minimum capital ratios as set forth in the table that follows.

As of December 31, 2007, management believes that the Corporation met all capital adequacy requirements to which it was subject.

Camco:

At December 31, 2007

To be “well-

capitalized” under

For capital

prompt corrective

Actual

adequacy purposes

action provisions

Amount

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, 2007

To be “well-

capitalized” under

For capital

prompt corrective

Actual

adequacy purposes

action provisions

Amount

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, 2006

To be “well-

For capital

capitalized” under prompt corrective

Actual

adequacy purposes

action provisions

Amount

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, 2006

To be “well-

For capital

capitalized” under prompt corrective

Actual

adequacy purposes

action provisions

Amount

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%

The Corporation’s management believes that, under the current regulatory capital regulations, Camco will continue to meet its minimum capital requirements in the foreseeable future. However, events beyond the control of the Corporation, such as increased interest rates or a downturn in the economy in the Bank’s market areas, could adversely affect future earnings and, consequently, the ability to meet future minimum regulatory capital requirements.

NOTE K - BENEFIT PLANS

The Corporation has a non-contributory retirement plan which provides benefits to certain key officers. The Corporation’s future obligations under the plan have been provided for via the purchase of single premium key man life insurance of which the Corporation is the beneficiary. The Corporation recorded expense related to the plan totaling approximately $101,000, $356,000 and $320,000 during the years ended December 31, 2007, 2006 and 2005, respectively.

The Corporation also has a 401(k) Salary Savings Plan covering substantially all employees. Contributions by the employees are voluntary and are subject to matching contributions by the employer under a fixed percentage, which may be increased at the discretion of the Board of Directors. Total expense under this plan was $360,000, $293,000 and $298,000 for the years ended December 31, 2007, 2006 and 2005, respectively.

48

NOTE L - CAMCO FINANCIAL CORPORATION CONDENSED FINANCIAL INFORMATION

The following condensed financial statements summarize the financial position of the Corporation as of December 31, 2007 and 2006, and the results of its operations and its cash flows for each of the years ended December 31, 2007, 2006 and 2005:

CAMCO FINANCIAL CORPORATION STATEMENTS OF FINANCIAL CONDITION

	December 31,
	2007			2006
	(In thousands)
ASSETS
Cash in Advantage	$	4,403		$	123
Interest-bearing deposits in other financial institutions		100			5,172
Investment securities designated as available for sale		164			184
Investment in Advantage		87,094			83,799
Investment in Camco Title		852			1,056
Office premises and equipment – net		1,207			1,248
Cash surrender value of life insurance		1,172			1,136
Prepaid expenses and other assets		319			281
Total assets	$	95,311		$	92,999
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and other accrued liabilities	$	335		$	381
Borrowings		5,000			—
Dividends payable		1,080			1,120
Accrued federal income taxes		261			406
Deferred federal income taxes		1			—
Total liabilities		6,677			1,907
Stockholders’ equity
Common stock		8,835			8,832
Additional paid-in capital		59,842			59,722
Retained earnings		44,083			43,954
Unrealized 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			91,092
Total 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)
Income
Dividends from Advantage	$	3,000		$	4,800		$	7,000
Dividends from Camco Title		350			—			250
Interest and other income		157			366			239
Gain on sale of investments		1			—			113
Gain on sale of fixed assets		—			7			—
Undistributed earnings of Advantage		2,069			1,568			2,145
Undistributed earnings of Camco Title		(204	)		148			(61	)
Total income		5,373			6,889			9,686
Interest Expense		139			—			—
General, administrative and other expense		1,107			1,357			1,233
Earnings before federal income tax credits		4,127			5,532			8,453
Federal 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		$	8,766
Adjustments 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	)		61
Gain on sale of office premises and equipment		—			(7	)		—
Gain on sale of investments		(1	)		—			(113	)
Depreciation and amortization		41			49			53
Increase (decrease) in cash due to changes in:
Prepaid expenses and other assets		54			17			5
Accounts payable and other liabilities		(47	)		(32	)		9
Accrued federal income taxes		(145	)		(35	)		(70	)
Deferred federal income taxes		6			54			92
Tax benefits related to exercise of stock options		—			—			111
Net 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			6,769
Cash flows from investing activities:
Purchase of investment securities		—			—			(100	)
Proceeds from redemption of available for sale securities		3			—			302
Net 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			591
Proceeds 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			223
Cash and cash equivalents at end of year	$	4,403		$	123		$	99

Ohio statutes impose certain limitations on the payment of dividends and other capital distributions by banks. Generally, absent approval of the Superintendent of Banks, such statutes limit dividend and capital distributions to earnings of the current and two preceding years.

51

CAMCO FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2007, 2006 and 2005

NOTE N - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following table summarizes the Corporation’s quarterly results for the years ended December 31, 2007 and 2006.

	Three months ended
2007:	December 31,		September 30,		June 30,		March 31,
	(In thousands, except per share date)
Total interest income	$	16,159	$	16,434	$	16,535	$	16,189
Total interest expense		9,089		9,445		9,085		8,802
Net interest income		7,070		6,989		7,450		7,387
Provision for losses on loans		980		200		120		195
Other income		1,724		1,495		1,063		1,568
General, administrative and other expenses		6,763		7,223		6,436		6,563
Earnings before income taxes		1,051		1,061		1,957		2,197
Federal income taxes		244		218		610		693
Net earnings	$	807	$	843	$	1,347	$	1,504
Earnings per share:
Basic	$	.11	$	.12	$	.18	$	.20
Diluted	$	.11	$	.12	$	.18	$	.20

	Three months ended
2006:	December 31,		September 30,		June 30,		March 31,
	(In thousands, except per share date)
Total interest income	$	16,174	$	15,900	$	15,463	$	15,152
Total interest expense		8,742		8,648		8,008		7,373
Net interest income		7,432		7,252		7,455		7,779
Provision for losses on loans		360		360		360		360
Other income		1,016		1,246		1,465		1,306
General, administrative and other expenses		6,295		6,410		5,943		6,262
Earnings before income taxes		1,793		1,728		2,617		2,463
Federal income taxes		533		608		802		784
Net earnings	$	1,260	$	1,120	$	1,815	$	1,679
Earnings per share:
Basic	$	0.17	$	0.15	$	0.24	$	0.22
Diluted	$	0.17	$	0.15	$	0.24	$	0.22

52

CAMCO FINANCIAL CORPORATION
6901 GLENN HIGHWAY
CAMBRIDGE, OHIO 43725
www.camcofinancial.com

EX-23

EXHIBIT 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have issued our report dated February 20, 2008, accompanying the consolidated financial statements in the Annual Report of Camco Financial Corporation on Form 10-K for the year ended December 31, 2007. We hereby consent to the incorporation by reference of said report in the Registration Statements of Camco Financial Corporation on Forms S-8, File No. 333-94113, effective January 5, 2000 and File Nos. 333-90142, 333-90152, 333-90158 and 333-90166 effective June 10, 2002.

/s/ PLANTE & MORAN PLLC  

Auburn Hills, Michigan
March 14, 2008

EX-31.1

EXHIBIT 31(i)

CERTIFICATION

I, Richard C. Baylor, certify that:

1.	I have reviewed this annual report on Form 10-K of Camco Financial Corporation;
2.	Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
3.	Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of Camco as of, and for, the periods presented in this annual report;
4.	Camco’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-14) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Camco and have:

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Camco, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.	Evaluated the effectiveness of Camco’s disclosure controls and procedures and presented in this report our conclusion about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this annual report based on such evaluations; and
d.	Disclosed in this report any change in Camco’s internal control over financial reporting that occurred during Camco’s fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, Camco’s internal control over financial reporting;

5. Camco’s other certifying officers and I have disclosed, based on our most recent evaluation, to Camco’s auditors and the audit committee of Camco’s board of directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect Camco’s ability to record, process, summarize and report financial information; and
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in Camco’s internal controls over financial reporting; and

6. The registrant’s other certifying officers and I have indicated in this annual report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: March 13, 2008	/s/ Richard C. Baylor
	Richard C. Baylor
	Chief Executive Officer

EX-31.2

EXHIBIT 31(ii)

CERTIFICATION

I, Eric S. Nadeau, certify that:

1.	I have reviewed this annual report on Form 10-K of Camco Financial Corporation;
2.	Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
3.	Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of Camco as of, and for, the periods presented in this annual report;
4.	Camco’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-14) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for Camco and have:

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Camco, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.	Evaluated the effectiveness of Camco’s disclosure controls and procedures and presented in this report our conclusion about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this annual report based on such evaluations; and
d.	Disclosed in this report any change in Camco’s internal control over financial reporting that occurred during Camco’s fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, Camco’s internal control over financial reporting;

5. Camco’s other certifying officers and I have disclosed, based on our most recent evaluation, to Camco’s auditors and the audit committee of Camco’s board of directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect Camco’s ability to record, process, summarize and report financial information; and
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in Camco’s internal controls over financial reporting; and

6. The registrant’s other certifying officers and I have indicated in this annual report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: March 13, 2008	/s/ Eric S. Nadeau
	Eric S. Nadeau
	Chief Financial Officer

EX-32.1

EXHIBIT 32(i)

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

          In connection with the Annual Report of Camco Financial Corporation (the “Company”) on Form 10-K for the fiscal year ending December 31, 2007 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard C. Baylor, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

          (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

          (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Richard C. Baylor  

Richard C. Baylor 

Chief Executive Officer 

March 13, 2008

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32(ii)

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

          In connection with the Annual Report of Camco Financial Corporation (the “Company”) on Form 10-K for the fiscal year ending December 31, 2007 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Eric S. Nadeau, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

          (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

          (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Eric S. Nadeau  

Eric S. Nadeau 

Chief Financial Officer 

March 13, 2008

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.