CLARKSTON, Mich., July 29, 2010 (GLOBE NEWSWIRE) -- Clarkston Financial Corporation (OTCBB:CKFC), the holding company for Clarkston State Bank, today reported operating results for the second quarter ended June 30, 2010.
Total revenues for the first quarter -- net interest income plus noninterest income -- were $1,103,000, compared with total revenues of $1,176,000 for Q2-2009. For the six months ended June 30, 2010, total revenues were $2,251,000, versus $2,653,000 for the six months ended 2009. Net interest income was lower as a direct result of reducing the size of the balance sheet. Despite the fact that earning assets have declined, interest bearing liabilities have declined at a more rapid rate, resulting in a stronger net interest margin. With nonaccrual loans continuing to decline, we expect the net interest margin to continue to improve.
The net loss for the second quarter was $348,000, or ($0.16) per diluted share, as compared to a net loss of $766,000, or ($0.52) per diluted share, for Q2-2009. For the six months, the net loss was $615,000, or ($0.28) per diluted share, a slight improvement over the net loss of $684,000, or ($0.47) per diluted share for the six months ended 2009.
J. Grant Smith, Clarkston Financial Corporation's Chief Executive Officer, said, "The focus remains on strengthening our asset quality and finalizing our recapitalization plan. We are working closely with our regulatory partners to finalize approvals which we expect to complete in the third quarter. In the meantime, we continue to maintain excellent liquidity while we focus on improving our core profitability as evidenced by the significant improvement in our net interest margin. On the asset quality front, our nonaccrual loans continue to decline and we have maintained our accruing loan delinquency for loans 30-89 days past due at less than peer levels for six consecutive months. Total delinquency continues to decline as well and is very near peer levels. We will continue to follow our turnaround plan until we have achieved our goals which are now clearly attainable."
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 constitutes 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 | |||
| Jun 2010 | Mar 2010 | Jun 2010 | Jun 2009 | |
| Total assets | $106,287 | $109,974 | $106,287 | $119,958 |
| Securities available for sale | 8,788 | 11,973 | 8,788 | 13,903 |
| Loans | 83,231 | 87,051 | 83,231 | 96,833 |
| Allowance for possible loan losses | (2,966) | (3,666) | (2,966) | (3,607) |
| Net loans | 80,265 | 83,385 | 80,265 | 93,226 |
| Banking premises and equipment | 4,772 | 4,821 | 4,772 | 4,926 |
| Noninterest-bearing demand deposits | 19,905 | 20,240 | 19,905 | 19,563 |
| Interest bearing deposits | 80,597 | 83,601 | 80,597 | 89,023 |
| Total deposits | 100,502 | 103,841 | 100,502 | 108,586 |
| CD's>$100K | 14,111 | 16,111 | 14,111 | 20,413 |
| Federal Home Loan Bank advances | 2,000 | 2,000 | 2,000 | 5,200 |
| Other borrowings | 5,330 | 5,330 | 5,330 | 4,000 |
| Total Stockholders' equity (deficit) | (2,016) | (1,690) | (2,016) | 1,582 |
| Common Shares Outstanding at End of Period | 2,226 | 2,226 | 2,226 | 1,467 |
| CLARKSTON FINANCIAL CORPORATION | |||||
| Historical Income Statement Data | |||||
| 000's omitted | |||||
| Unaudited | Unaudited | ||||
| Three | Three | Three | Six | Six | |
| Months | Months | Months | Months | Months | |
| Ended | Ended | Ended | Ended | Ended | |
| Jun 2010 | Mar 2010 | Jun 2009 | Jun 2010 | Jun 2009 | |
| Total interest income | $1,372 | $1,402 | $1,576 | $2,774 | $3,247 |
| Total interest expense | 439 | 501 | 676 | 940 | 1,503 |
| Net Interest Income | 933 | 901 | 900 | 1,834 | 1,744 |
| Provision for loan losses | 210 | 50 | 560 | 260 | 560 |
| Gain on sale of securities | 17 | 33 | 40 | 50 | 114 |
| Service fees on loan and deposit accounts | 149 | 158 | 185 | 307 | 368 |
| Other | 4 | 56 | 51 | 60 | 427 |
| Total Other Income | 170 | 247 | 276 | 417 | 909 |
| Salaries and employee benefits | 480 | 507 | 557 | 987 | 1,182 |
| Occupancy | 133 | 139 | 176 | 272 | 352 |
| Other | 628 | 719 | 649 | 1,347 | 1,243 |
| Total Other Expense | 1,241 | 1,365 | 1,382 | 2,606 | 2,777 |
| EBIT | (348) | (267) | (766) | (615) | (684) |
| Tax | -- | -- | -- | -- | -- |
| Minority Interest | -- | -- | -- | -- | -- |
| Net Income | ($348) | ($267) | ($766) | ($615) | ($684) |
| Reported EPS (diluted) | ($0.16) | ($0.12) | ($0.52) | ($0.28) | ($0.47) |
| Selected Financial Ratios: | |||||
| Total Risk Based Capital - CFC | -1.10% | -0.71% | 2.78% | -1.10% | 2.78% |
| Tier 1 Leverage - CFC | -2.00% | -1.68% | 1.25% | -2.00% | 1.25% |
| Total Risk Based Capital - CSB | 3.70% | 3.89% | 6.60% | 3.70% | 6.60% |
| Tier 1 Leverage - CSB | 2.06% | 2.20% | 4.46% | 2.06% | 4.46% |
| Return on Average Assets | -1.27% | -0.95% | -2.45% | -1.11% | -1.07% |
| Return on Average Equity | -80.77% | -70.90% | -130.63% | -75.79% | -35.93% |
| Net Interest Margin | 3.91% | 3.53% | 3.13% | 3.71% | 3.01% |
| Average Assets | 109,279 | 112,482 | 125,158 | 110,880 | 128,194 |
| Loans past due 90 days or more and still accruing | -- | -- | 290 | -- | 290 |
| Nonaccrual Loans | 3,926 | 5,395 | 4,801 | 3,926 | 4,801 |
| Total Non-performing Loans | 3,926 | 5,395 | 5,091 | 3,926 | 5,091 |
| Other real estate owned | 4,437 | 2,548 | 1,280 | 4,437 | 1,280 |
| Net charge-offs ($) | 910 | 83 | 632 | 993 | 1,367 |
| Gross charge-offs ($) | 962 | 122 | 683 | 1,084 | 1,452 |