CLARKSTON, Mich., May 2, 2012 (GLOBE NEWSWIRE) -- Clarkston Financial Corporation ("Corporation") (OTCBB:CKFC), the holding company for Clarkston State Bank ("Bank"), today reported a net income of $51,000 or $0.01 per basic and diluted common share for the three months ended March 31, 2012, compared to net loss of ($38,000) or ($0.03) per share for the three months ended March 31, 2011.
J. Grant Smith, CEO, said, "We continue to gain momentum and have begun what we believe is the start of some favorable performance trends for the Corporation. During the first quarter, both loans and deposits posted moderate growth while maintaining strong balance sheet liquidity and an excellent net interest margin. This has resulted in net interest income continuing to improve, posting a 14.05% increase from the first quarter of 2011. However, we are still experiencing higher costs related to the servicing of other real estate owned as well as legal fees associated with workout loans. As asset quality continues to improve we expect these associated costs to decline."
Operating Results
The Corporation's net interest income was $1,169,000 for the quarter ended March 31, 2012 compared to $1,025,000 for the same period ended March 31, 2011, an increase of $144,000 or 14.05%. The net interest margin of the Bank showed a modest increase, ending at 4.78% for the quarter ended March 31, 2012, up from 4.60% for the quarter ended March 31, 2011. This increase in net interest margin is representative of increased loan growth and growth in core deposits.
Noninterest income decreased in the first quarter 2012, due to lower service fees on loan and deposit accounts, ending at $217,000 compared to $226,000 for the quarter ended March 31, 2011, a decrease of $9,000 or 3.98%. Noninterest expense stayed constant, ending the first quarter 2012 at $1,290,000 compared to $1,289,000 for the same period ended March 31, 2011.
Balance Sheet
Total assets at March 31, 2012 were $121,285,000 compared to $110,510,000 at March 31, 2011, an increase of $10,775,000 or 9.75%. The growth in total assets represents the increased cash balances as a result of additional growth in core deposits.
Total loans increased $11,455,000 from $81,027,000 at March 31, 2011 to $92,482,000 at March 31, 2012, an increase of 14.14%. Total deposits increased $11,512,000 or 11.48%, ending at $111,784,000 for March 31, 2012, up from $100,272,000 at March 31, 2011. Total stockholders' equity decreased from $5,451,000 at March 31, 2011 to $3,952,000 at March 31, 2012, a decrease of $1,499,000 or 27.50%. This decrease is due to provision expenses and write-downs on other real estate owned taken in the fourth quarter of 2011.
Asset Quality
Total non-performing loans decreased to $1,964,000 at March 31, 2012 compared to $3,315,000 from the same period 2011, a decrease of $1,351,000, or 40.75%. The allowance for loan loss decreased to 2.80% of total loans as of March 31, 2012, compared to 3.16% for the same period 2011. Management continually monitors the allowance for loan loss to assure 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) | ||
3/31/2012 | 12/31/2011 | 3/31/2011 | |
Assets | |||
Cash and cash equivalents | $16,385 | $9,783 | $10,715 |
Securities – Available for sale | 5,095 | 9,412 | 11,670 |
Federal Home Loan Bank stock, at cost | 556 | 556 | 662 |
Loans | 92,482 | 88,081 | 81,027 |
Allowance for possible loan losses | (2,585) | (2,865) | (2,560) |
Net loans | 89,897 | 85,216 | 78,467 |
Banking premises and equipment | 4,614 | 4,586 | 4,723 |
Other real estate owned | 4,364 | 4,411 | 3,789 |
Accrued interest receivable and other assets | 374 | 410 | 484 |
Total assets | $121,285 | $114,374 | $110,510 |
Liabilities and Stockholders' Equity (Deficit) | |||
Liabilities | |||
Deposits | |||
Noninterest-bearing demand deposits | 30,480 | 23,902 | 22,601 |
Interest-bearing | 81,304 | 80,993 | 77,671 |
Total deposits | 111,784 | 104,895 | 100,272 |
Other Liabilities | |||
Borrowings | 5,300 | 5,300 | 4,330 |
Accrued interest payable and other liabilities | 249 | 245 | 457 |
Total liabilities | 117,333 | 110,440 | 105,059 |
Stockholders' Equity | |||
Common stock | 11,807 | 11,807 | 10,732 |
Paid-in capital | 11,688 | 11,688 | 10,732 |
Restricted stock - Unearned compensation | 0 | 0 | (30) |
Accumulated deficit | (19,640) | (19,691) | (16,076) |
Accumulated other comprehensive income (loss) | 97 | 130 | 91 |
Total stockholders' equity | 3,952 | 3,934 | 5,451 |
Total liabilities and stockholders' equity | $121,285 | $114,374 | $110,510 |
CLARKSTON FINANCIAL CORPORATION | ||
CONSOLIDATED STATEMENT OF OPERATIONS | ||
(Dollars, in thousands) | ||
(unaudited) | ||
Three Months Ended | ||
3/31/2012 | 3/31/2011 | |
Interest Income | ||
Interest and fees on loans | $ 1,325 | $ 1,218 |
Interest on investment securities: | 51 | 85 |
Interest on federal funds sold | 4 | 4 |
Total interest income | 1,380 | 1,306 |
Interest Expense | ||
Deposits | 133 | 205 |
Borrowings | 78 | 75 |
Total interest expense | 211 | 281 |
Net Interest Income | 1,169 | 1,025 |
Provision for Possible Loan Losses | 45 | 0 |
Net Interest Income/(Expense) after provision for possible loan losses | ||
1,124 | 1,025 | |
Noninterest Income | ||
Service fees on loan and deposit accounts | 121 | 149 |
Gain on sale of securities | 60 | -- |
Gain on sale of other real estate owned | -- | 28 |
Other | 36 | 49 |
Total noninterest income | 217 | 226 |
Noninterest Expense | ||
Salaries and employee benefits | 554 | 514 |
Occupancy | 147 | 156 |
Advertising | 15 | 18 |
Outside processing | 141 | 127 |
Professional fees | 139 | 76 |
FDIC insurance | 63 | 126 |
Defaulted loan expense | 121 | 160 |
Other | 110 | 111 |
Total noninterest expense | 1,290 | 1,289 |
Income/(Loss) before income taxes | 51 | (38) |
Income Tax Benefit | -- | -- |
Net Income/(Loss) | $ 51 | $ (38) |
(Dollars in thousands, except share and per share data) | |||||
Quarter Ended | |||||
3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | |
MARKET DATA | |||||
Book value per share | $0.12 | $0.12 | $0.23 | $0.24 | $0.25 |
Market value per share | $0.36 | $0.42 | $0.90 | $0.50 | $0.90 |
Earnings per share - basic & diluted | $0.01 | $ (0.44) | $ (0.03) | $0.02 | $ (0.03) |
Average basic shares outstanding | 31,957,165 | 31,950,625 | 31,950,625 | 30,142,227 | 5,464,777 |
Average diluted shares outstanding | 31,957,165 | 31,950,625 | 31,950,625 | 30,142,227 | 5,464,777 |
Period end common shares | 31,957,165 | 31,950,625 | 31,950,625 | 31,950,625 | 26,737,435 |
PERFORMANCE RATIOS | |||||
Return on average assets | 0.18% | -12.35% | -0.76% | 0.54% | -0.14% |
Return on average equity | 5.13% | -213.35% | -11.04% | 8.66% | -13.58% |
Net interest margin - CSB | 4.78% | 4.85% | 4.44% | 4.68% | 4.60% |
Efficiency ratio | 93.09% | 283.10% | 94.56% | 88.49% | 103.03% |
Texas Ratio | 55.80% | 58.21% | 73.57% | 64.49% | 58.12% |
CAPITAL & LIQUIDITY | |||||
Total Risk Based Capital - CSB | 10.01% | 10.23% | 11.40% | 12.03% | 12.03% |
Tier 1 Risk Based Capital - CSB | 8.74% | 8.96% | 10.14% | 10.77% | 10.76% |
Tier 1 Leverage - CSB | 7.65% | 7.44% | 8.96% | 9.18% | 9.07% |
Loan to deposit ratio | 82.73% | 83.97% | 86.72% | 85.40% | 80.81% |
ASSET QUALITY | |||||
Gross loan charge-offs | $352 | $1,898 | $350 | $382 | $91 |
Net loan charge-offs | $325 | $1,879 | $317 | $358 | $5 |
Allowance for loan and lease losses to total loans | 2.80% | 3.25% | 2.41% | 2.58% | 3.16% |
Nonperforming loans to total loans | 2.12% | 2.55% | 5.40% | 5.20% | 4.09% |
Nonperforming assets to total assets | 5.22% | 5.82% | 7.83% | 7.17% | 6.43% |
CLARKSTON FINANCIAL CORPORATION | |||
LOAN INFORMATION | |||
(unaudited) | (unaudited) | ||
CATEGORY | 3/31/2012 | 12/31/2011 | 3/31/2011 |
Commercial Loans | $16,539 | $14,491 | $8,041 |
Real Estate Mortgage Loans: | |||
Commercial | 62,966 | 60,453 | 59,492 |
1-4 Residential | 8,745 | 8,990 | 9,610 |
Construction and other | 3,898 | 3,677 | 3,145 |
Total mortgage loans on real estate | 75,609 | 73,120 | 72,247 |
Consumer | 334 | 470 | 739 |
Total Loans | 92,482 | 88,081 | 81,027 |
Less: Allowance for loan losses | (2,585) | (2,865) | (2,560) |
Net Loans | $89,897 | $85,216 | $78,467 |
(unaudited) | (unaudited) | ||
ASSET QUALITY | 3/31/2012 | 12/31/2011 | 3/31/2011 |
Total nonaccrual loans | $1,964 | $2,244 | $3,315 |
Total loans past due 90 days or more and still accruing | -- | -- | -- |
Total nonperforming loans | $1,964 | $2,244 | $3,315 |
Other real estate owned | 4,364 | 4,411 | 3,789 |
Total nonperforming assets | $6,328 | $6,655 | $7,104 |