CLARKSTON, Mich., April 24, 2013 (GLOBE NEWSWIRE) -- Clarkston Financial Corporation ("Corporation") (OTCBB:CKFC), the holding company for Clarkston State Bank ("Bank"), today reported a net income of $99,000 for the three months ended March 31, 2013, compared to net loss of $51,000 for the three months ended March 31, 2011.
J. Grant Smith, CEO, said, "The Bank continues to make great financial progress as noted in the attached financial information. The net interest margin continues to hold steady despite the difficult interest rate environment. In addition, the asset quality metrics continue to improve and are now stabilized. Moreover, we are seeing a decrease in defaulted loan expense further reducing operating expenses associated with problem loans. These improved operating metrics are having a very positive effect on our bottom line financial results. We have an experienced team in place with a strong work ethic and we expect the positive financial performance to continue."
Operating Results
The Corporation's net interest income remained steady at $1,168,000 for the quarter ended March 31, 2013 compared to $1,169,000 for the same period ended March 31, 2012. The net interest margin of the Bank showed a modest decrease, ending at 4.64% for the quarter ended March 31, 2013, down from 4.78% for the quarter ended March 31, 2012. This decrease in net interest margin is representative of decreased yields on new loans as competition for quality loans increases.
Noninterest income had a slight decrease in the first quarter 2013, due to security gains recognized in 2012. The quarter ended at $211,000 compared to $217,000 for the quarter ended March 31, 2012, a decrease of $6,000 or 2.76%. Noninterest expense decreased, ending the first quarter 2013 at $1,249,000 compared to $1,290,000 for the same period ended March 31, 2011, a decrease of $41,000 or 3.18%. The decrease represents a decline in the expense related to troubled loans, another sign of the strengthen asset quality position.
Balance Sheet
Total assets at March 31, 2013 were $119,244,000 compared to $121,285,000 at March 31, 2012, a decrease of $2,041,000 or 1.68%. The decline in total assets represents a decrease in cash as a result of a reduction in interest bearing deposits, specifically certificates of deposits.
Total loans increased $5,043,000 from $92,482,000 at March 31, 2012 to $97,525,000 at March 31, 2013, an increase of 5.45%. Total deposits decreased $3,770,000 or 3.37%, ending at $108,014,000 for March 31, 2013, down from $111,784,000 at March 31, 2011. Total stockholders' equity increased from $3,952,000 at March 31, 2012 to $5,558,000 at March 31, 2013, an increase of $1,706,000 or 43.17%. This increase is due to the net income in 2012 and the first quarter of 2013.
Asset Quality
Total non-performing loans decreased to $754,000 at March 31, 2013 compared to $1,964,000 from the same period 2012, a decrease of $1,210,000, or 61.61%. The allowance for loan loss decreased to 2.55% of total loans as of March 31, 2013, compared to 2.80% for the same period 2012. Management continually monitors the allowance for loan loss to determine its adequacy.
Clarkston State Bank opened in January 1999 and operates four branches in Clarkston, Waterford, and Independence Township, Michigan.
Safe Harbor. This news release contains comments or information that constitute forward-looking statements within the context of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve significant risks and uncertainties. Actual results may differ materially from the results discussed in the forward-looking statements. Factors that may cause such a difference include: changes in interest rates and interest-rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulations; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior and their ability to repay loans; and changes in the national and local economy. The Corporation assumes no responsibility to update forward-looking statements.
CLARKSTON FINANCIAL CORPORATION | |||
CONSOLIDATED BALANCE SHEET | |||
(Dollars, in thousands) | |||
(unaudited) | (unaudited) | ||
3/31/2013 | 12/31/2012 | 3/31/2012 | |
Assets | |||
Cash and due from banks | $6,698 | $14,517 | $16,385 |
Securities – Available for sale | 7,159 | 7,709 | 5,095 |
Federal Home Loan Bank stock, at cost | 556 | 556 | 556 |
Loans | 97,525 | 92,812 | 92,482 |
Allowance for possible loan losses | (2,490) | (2,438) | (2,585) |
Net loans | 95,035 | 90,374 | 89,897 |
Banking premises and equipment | 4,916 | 4,955 | 4,614 |
Deferred tax asset | 1,517 | 1,513 | -- |
Other real estate owned | 2,928 | 3,431 | 4,364 |
Accrued interest receivable and other assets | 435 | 449 | 374 |
Total assets | $119,244 | $123,504 | $121,285 |
Liabilities and Stockholders' Equity (Deficit) | |||
Liabilities | |||
Deposits | |||
Noninterest-bearing demand deposits | 36,569 | 38,552 | 30,480 |
Interest-bearing | 71,445 | 73,914 | 81,304 |
Total deposits | 108,014 | 112,466 | 111,784 |
Other Liabilities | |||
Other borrowings | 5,300 | 5,300 | 5,300 |
Accrued interest payable and other liabilities | 372 | 290 | 249 |
Total liabilities | 113,686 | 118,056 | 117,333 |
Stockholders' Equity | |||
Common stock | 11,908 | 11,908 | 11,807 |
Paid-in capital | 11,789 | 11,789 | 11,688 |
Restricted stock - Unearned compensation | (149) | (167) | -- |
Accumulated deficit | (17,958) | (18,057) | (19,640) |
Accumulated other comprehensive income (loss) | (32) | (25) | 97 |
Total stockholders' equity | 5,558 | 5,448 | 3,952 |
Total liabilities and stockholders' equity | $119,244 | $123,504 | $121,285 |
CLARKSTON FINANCIAL CORPORATION | ||
CONSOLIDATED STATEMENT OF OPERATIONS | ||
(Dollars, in thousands) | ||
(unaudited) | ||
Three Months Ended | ||
3/31/2013 | 3/31/2012 | |
Interest Income | ||
Interest and fees on loans | $1,304 | $1,325 |
Interest on investment securities: | 27 | 51 |
Interest on federal funds sold | 6 | 4 |
Total interest income | 1,337 | 1,379 |
Interest Expense | ||
Deposits | 85 | 133 |
Borrowings | 84 | 78 |
Total interest expense | 169 | 211 |
Net Interest Income | 1,168 | 1,169 |
Provision for Possible Loan Losses | 30 | 45 |
Net Interest Income after provision for possible loan losses | 1,138 | 1,124 |
Noninterest Income | ||
Service fees on loan and deposit accounts | 134 | 121 |
Gain on sale of securities | -- | 60 |
Loss on sale of other real estate owned | 46 | 0 |
Other | 31 | 36 |
Total noninterest income | 211 | 217 |
Noninterest Expense | ||
Salaries and employee benefits | 631 | 554 |
Occupancy | 154 | 147 |
Advertising | 19 | 15 |
Outside processing | 145 | 141 |
Professional fees | 80 | 139 |
FDIC insurance | 48 | 63 |
Defaulted loan expense | 68 | 121 |
Other | 104 | 110 |
Total noninterest expense | 1,249 | 1,290 |
Income/(Loss) before income taxes | 99 | 51 |
Income Tax Benefit | -- | -- |
Net Income/(Loss) | $99 | $51 |
CLARKSTON FINANCIAL CORPORATION | |||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||
(Dollars in thousands, except share and per share data) | |||||
Quarter Ended | |||||
3/31/2013 | 12/31/2012 | 9/30/2012 | 6/30/2012 | 3/31/2012 | |
MARKET DATA | |||||
Book value per share | $0.17 | $0.17 | $0.13 | $0.13 | $0.12 |
Market value per share | $0.51 | $0.15 | $0.55 | $0.36 | $0.36 |
Earnings per share - basic & diluted | $0.00 | $0.16 | $0.02 | $0.02 | $0.00 |
Average basic shares outstanding | 32,425,330 | 32,421,855 | 32,286,613 | 32,291,150 | 31,957,165 |
Average diluted shares outstanding | 32,425,330 | 32,421,855 | 32,286,613 | 32,291,150 | 31,957,165 |
Period end common shares | 32,425,330 | 32,421,855 | 32,421,855 | 32,433,355 | 31,957,165 |
PERFORMANCE RATIOS | |||||
Return on average assets | 0.33% | 4.23% | 0.41% | 0.67% | 0.18% |
Return on average equity | 7.29% | 123.59% | 12.24% | 20.03% | 5.13% |
Net interest margin - CSB | 4.64% | 4.65% | 4.59% | 4.74% | 4.78% |
Efficiency ratio | 90.64% | 114.20% | 87.86% | 83.33% | 93.09% |
Texas Ratio - CSB | 29.66% | 36.52% | 48.98% | 49.06% | 55.80% |
CAPITAL & LIQUIDITY | |||||
Total risk based capital - CSB | 10.78% | 10.77% | 10.59% | 10.22% | 10.01% |
Tier 1 risk based capital - CSB | 9.51% | 9.51% | 9.33% | 8.96% | 8.74% |
Tier 1 leverage - CSB | 8.29% | 8.14% | 7.69% | 7.56% | 7.65% |
Loan to deposit ratio | 90.29% | 82.52% | 80.54% | 85.61% | 82.73% |
ASSET QUALITY | |||||
Gross loan charge-offs | $26 | $136 | $275 | $99 | $352 |
Net loan charge-offs | $(22) | $78 | $199 | $5 | $325 |
Allowance for loan and lease losses to total loans | 2.55% | 2.63% | 2.71% | 2.80% | 2.80% |
Nonperforming loans to total loans | 0.77% | 1.05% | 1.21% | 1.89% | 2.12% |
Nonperforming assets to total assets | 3.09% | 3.57% | 4.70% | 4.83% | 5.22% |
CLARKSTON FINANCIAL CORPORATION | |||
LOAN INFORMATION | |||
(unaudited) | (unaudited) | ||
CATEGORY | 3/31/2013 | 12/31/2012 | 3/31/2012 |
Commercial Loans | $14,207 | $15,355 | $16,539 |
Real Estate Mortgage Loans: | |||
Commercial | 72,670 | 66,725 | 62,966 |
1-4 Residential | 7,096 | 6,977 | 8,745 |
Construction and other | 3,396 | 3,521 | 3,898 |
Total mortgage loans on real estate | 83,162 | 77,223 | 75,609 |
Consumer | 156 | 234 | 334 |
Total Loans | 97,525 | 92,812 | 92,482 |
Less: Allowance for loan losses | (2,490) | (2,438) | (2,585) |
Net Loans | $95,035 | $90,374 | $89,897 |
(unaudited) | (unaudited) | ||
ASSET QUALITY | 3/31/2013 | 12/31/2012 | 3/31/2012 |
Total nonaccrual loans | $754 | $969 | $1,964 |
Total loans past due 90 days or more and still accruing | -- | 3 | -- |
Total nonperforming loans | 754 | 972 | $1,964 |
Other real estate owned | 2,928 | 3,431 | 4,364 |
Total nonperforming assets | $3,682 | $4,403 | $6,328 |