CLARKSTON, Mich., Oct. 30, 2009 (GLOBE NEWSWIRE) -- Clarkston Financial Corporation (OTCBB:CKFC), the holding company for Clarkston State Bank, today reported operating results for the third quarter and nine months ended September 30, 2009.
Total revenues for the third quarter -- net interest income plus noninterest income -- were $955,000, compared with total revenues of $1,108,000 for Q3-2008. For the nine months, total revenues were $3,606,000, versus $6,084,000 for the first nine months of 2008. Net interest income was off for both reporting periods, chiefly from slowed lending and nonaccural adjustments. Noninterest income was up for the third quarter, but off for the nine months, principally reflecting losses from the sale of other real estate owned properties.
Importantly, there was no loan loss provision for the third quarter and a near 90% reduction in the provision for the nine months.
Operating expense was down 8% for the quarter and 13% for the year-to-date period, from successful cost-containment despite elevated defaulted-loan expenses and FDIC insurance premiums.
The net loss for the third quarter was $324,000, or ($0.22) per diluted share, improved significantly from a net loss of $2,600,000, or ($2.06) per diluted share, for Q3-2008. For the nine months, the net loss was $1,006,000, or ($0.69) per diluted share, a 63% improvement over the net loss of $2,729,000, or ($2.16) per diluted share, for the first nine months of 2008.
J. Grant Smith, CEO, said, "We continue to follow our plan and be very assertive as we work through our loan portfolio. We're seeing signs of gradual improvement. We continue to maintain good liquidity and balance sheet flexibility. We have reduced quarter-over-quarter loan-loss provisioning and net losses. We expect to see these trends continue. We are making slow, deliberate progress as we continue to address the risks in Michigan's systemic asset-quality environment and its impact on our loan portfolio."
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
Historical Balance Sheet Data
000's omitted
Unaudited Unaudited
-------------------- --------------------
Sep 2009 Jun 2009 Sep 2009 Sep 2008
Total Assets $116,365 $119,958 $116,365 $144,147
Total Portfolio Loans 94,102 96,833 94,102 112,789
Loan Loss Reserve (3,469) (3,607) (3,469) (3,242)
Non-accrual Loans 6,426 4,801 6,426 2,902
Loans 90 days + Still
Accruing -- 290 -- 212
-------------------- --------------------
Total Non-performing
Loans 6,426 5,091 6,426 3,114
Repossessed Assets 738 1,280 738 664
Total Securities 13,633 13,903 13,633 16,816
Premises/Furniture &
Fixtures 4,858 4,926 4,858 5,078
Noninterest-bearing
Deposits 20,361 19,563 20,361 22,515
Interest bearing Deposits 88,154 89,023 88,154 103,075
-------------------- --------------------
Total Deposits 108,515 108,586 108,515 125,590
CD's>$100K 18,908 20,413 18,908 22,143
Advances from FHLB 2,000 5,200 2,000 5,200
Common Equity 1,335 1,582 1,335 8,649
Common Shares Outstanding
at End of Period 1,467 1,467 1,467 1,262
CLARKSTON FINANCIAL CORPORATION
Historical Income Statement Data
000's omitted
Unaudited Unaudited
------------------------------- --------------------
Three Three Three Nine Nine
Months Months Months Months Months
Ended Ended Ended Ended Ended
------------------------------- --------------------
Sep 2009 Jun 2009 Sep 2008 Sep 2009 Sep 2008
Total Interest
Income $ 1,496 $ 1,582 $ 2,090 $ 4,741 $ 6,794
Interest Expense 616 676 899 2,119 3,477
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Net Interest
Income 880 906 1,191 2,622 3,317
Provision for
Loan Losses -- 560 3,693 560 5,110
Security Gains/
(Losses) 27 40 -- 141 30
Gain on loan
sales -- -- 5 -- 131
Service fees on
loan and deposit
accounts 191 185 200 558 551
Other Income (143) 51 (288) 285 2,055
------------------------------- --------------------
Total Other
Income 75 276 (83) 984 2,767
Salary & Benefit
Expense 555 557 647 1,736 2,203
Occupancy Expense 170 176 195 522 614
Other Expense 554 649 513 1,794 1,856
------------------------------- --------------------
Total Other
Expense 1,279 1,382 1,355 4,052 4,673
EBIT (324) (760) (3,940) (1,006) (3,699)
Tax -- -- (1,340) -- (1,258)
Minority
Interest -- -- -- -- (288)
------------------------------- --------------------
Net Income ($ 324) ($ 760) ($ 2,600) ($ 1,006) ($ 2,729)
=============================== ====================
Reported EPS
(diluted) ($ 0.22) ($ 0.52) ($ 2.06) ($ 0.69) ($ 2.16)
Dividends Per
Share -- -- -- -- --
Selected
Financial
Ratios:
Total Risk Based
Capital - CFC 2.50% 2.77% 8.60% 2.50% 8.60%
Tier 1 Leverage
- CFC 1.06% 1.25% 5.85% 1.06% 5.85%
Total Risk Based
Capital - CSB 6.58% 6.60% 8.46% 6.58% 8.46%
Tier 1 Leverage
- CSB 4.45% 4.46% 6.04% 4.45% 6.04%
Return on Average
Assets -1.07% -2.44% -6.96% -1.07% -2.03%
Return on Average
Equity -80.84% -129.61% -95.30% -43.53% -31.83%
Net Interest
Margin 3.17% 3.16% 3.46% 3.06% 2.97%
Average Assets 119,803 125,158 148,265 125,397 179,147
Net charge-offs
($) 138 632 2,300 1,505 4,088
Gross charge-offs
($) 329 683 2,420 1,781 4,517