Clarkston Financial Corporation Reports Q3 Results


CLARKSTON, Mich., Oct. 28, 2010 (GLOBE NEWSWIRE) -- Clarkston Financial Corporation (OTCBB:CKFC), the holding company for Clarkston State Bank, today reported a net loss of $751,000 or $(0.34) per fully diluted common share for the three months ended September 30, 2010 compared to a net loss of $324,000 or $(0.22) per share for the three months ended September 30, 2009. The net loss for the nine months ended September 30, 2010 was $1,366,000 or $(0.61) per share compared to a net loss of $1,006,000 or $(0.69) per share for the same period in 2009.

Total assets at September 30, 2010 were $101,984,000 compared to $116,365,000 at September 30, 2009, a decline of $14,381,000 or 12.36%. The decrease in total assets is consistent with management's plan to reduce costs and preserve capital. The allowance for possible loan losses increased to 3.76% of total loans as of September 30, 2010, compared to 3.69% for the same period 2009.

J. Grant Smith, CEO, said, "The focus remains on strengthening our asset quality and completing our recapitalization plan. We are working closely with our regulatory partners to finalize approvals which we expect to have completed in the fourth quarter. Total non-performing loans have significantly decreased to $2,800,000 at September 30, 2010 compared to $6,426,000 from the same period 2009, a decline of $3,626,000, or 56.43%. The net interest margin of the Bank is a robust 4.37% for the quarter ended September 30, 2010. We continue to maintain excellent liquidity and we expect our operating metrics to continue to improve as we finish out the year."

Clarkston State Bank opened in January 1999 and operates four branches in Clarkston, Waterford, and Independence Township, Michigan.

The Clarkston Financial Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8228

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 2010 Jun 2010 Sep 2010 Sep 2009
           
Total assets   $101,984 $106,287 $101,984 $116,365
           
Securities available for sale    8,320  8,788  8,320  13,633
           
Loans    81,864  83,231  81,864  94,102
Allowance for possible loan losses    (3,075)  (2,966)  (3,075)  (3,469)
Net loans    78,789  80,265  78,789  90,633
           
Banking premises and equipment    4,731  4,772  4,731  4,858
           
Noninterest-bearing demand deposits    20,745  19,905  20,745  20,361
Interest bearing deposits    76,165  80,597  76,165  88,154
Total deposits    96,910  100,502  96,910  108,515
           
Federal Home Loan Bank advances    2,000  2,000  2,000  2,000
Other borrowings    5,330  5,330  5,330  3,975
           
Total Stockholders' equity (deficit)    (2,753)  (2,016)  (2,753)  1,335
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 Nine Nine
  Months Months Months Months Months
  Ended Ended Ended Ended Ended
  Sep 2010 Jun 2010 Sep 2009 Sep 2010 Sep 2009
           
Total interest income $1,343 $1,372 $1,496 $4,117 $4,741
Total interest expense  371  439  616  1,311  2,119
Net Interest Income  972  933  880  2,806  2,622
           
Provision for loan losses  650  210  --  910  560
           
Gain on sale of securities  (0)  17  27  50  141
Service fees on loan and deposit accounts  150  149  191  457  558
Other  38  4  (143)  98  285
Total Other Income  187  170  75  604  984
           
Salaries and employee benefits  498  480  555  1,485  1,736
Occupancy  141  133  170  413  522
Other  622  628  554  1,969  1,794
Total Other Expense  1,261  1,241  1,279  3,867  4,052
           
EBIT  (751)  (348)  (324)  (1,366)  (1,006)
Tax  --  --  --  --  --
Minority Interest  --  --  --  --  --
Net Income ($751) ($348) ($324) ($1,366) ($1,006)
Reported EPS (diluted) ($0.34) ($0.16) ($0.22) ($0.61) ($0.69)
           
Selected Financial Ratios:          
Total Risk Based Capital - CFC -1.94% -1.10% 2.50% -1.94% 2.50%
Tier 1 Leverage - CFC -2.75% -2.00% 1.06% -2.75% 1.06%
Total Risk Based Capital - CSB 3.75% 3.70% 6.58% 3.75% 6.58%
Tier 1 Leverage - CSB 2.11% 2.06% 4.45% 2.11% 4.45%
Return on Average Assets -2.85% -1.27% -1.07% -1.69% -1.07%
Return on Average Equity -146.81% -80.77% -80.84% -99.39% -43.53%
Net Interest Margin - CFC 4.04% 3.91% 3.17% 3.74% 3.06%
Net Interest Margin - CSB 4.37% 4.27% 3.40% 4.06% 3.26%
           
Average Assets 105,291 109,279 119,803 107,897 125,397
           
Loans past due 90 days or more and still accruing  --  --  --  --  --
Nonaccrual Loans  2,800  3,926  6,426  2,800  6,426
Total Non-performing Loans  2,800  3,926  6,426  2,800  6,426
           
Other real estate owned  4,520  4,437  738  4,520  738
           
Net charge-offs ($)  542 910 138 1,535 1,505
Gross charge-offs ($)  614 962 329 1,698 1,781


            

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