Clarkston Financial Corporation Reports 2015 Results


CLARKSTON, Mich., Feb. 04, 2016 (GLOBE NEWSWIRE) -- Clarkston Financial Corporation (“Corporation”) (OTCBB:CKFC), the holding company for Clarkston State Bank (“Bank”), today reported a net income of $227,000 or $0.07 per share for the three months ended December 31, 2015, compared to net income of $926,000 or $0.30 per share for the three months ended December 31, 2014. For the twelve months ended December 31, 2015, the corporation reported a net income of $1,030,000 or $0.32 per share compared to a net income of $1,736,000 or $0.53 per share for the same period in 2014. During the first quarter 2015 the Corporation returned to booking a provision for income taxes.  The pre-tax net income was $1,547,000 for the twelve months ended December 31, 2015 compared to $1,078,000 for the period ended December 31, 2014.  This represents an increase of $469,000 or 43.50% in pre-tax income year over year.

J. Grant Smith, CEO, said, "We are very pleased with our performance in 2015. Our balance sheet fundamentals are very good and we have been prudent with our lending decisions. We believe we need to remain disciplined with our loan underwriting and not risk the temptation to take undue risk which is something we are seeing in the marketplace right now. We continue to maintain a very good net interest margin which ended the year at 4.29%. Both our loan and deposit portfolios have grown by double digits during the year. Most notable was the growth in our noninterest-bearing deposits which increased by $29.5 million or 55.72% during the year. We are positioned to continue our growth and we expect our operating performance to continue to improve in 2016.”

Operating Results

The Corporation’s net interest income increased to $1,409,000 for the quarter ended December 31, 2015 compared to $1,353,000 for the same period ended December 31, 2014.  The net interest margin of the Bank remains elevated compared to peers, but continues to have compression, ending at 4.29% for the quarter ended December 31, 2015, down from 4.50% for the quarter ended December 31, 2014.

Noninterest income decreased during the fourth quarter 2015.  The decrease is largely due to write downs on other real estate owned of $275,000 in December 2015.  The quarter ended at ($95,000) compared to $203,000 for the quarter ended December 31, 2014, a decrease of $298,000.  Noninterest expense decreased slightly, ending the third quarter 2015 at $1,246,000 compared to $1,288,000 for the same period ended December 31, 2014, a decrease of $42,000 or 3.26%.     

Balance Sheet

Total assets at December 31, 2015 were $172,302,000 compared to $144,379,000 at December 31, 2014, an increase of $27,923,000 or 19.34%.  The increase in assets is largely due to increases in noninterest-bearing demand deposits which had a year over year increase of $29,489,000 or 55.72%.

Net loans increased $12,692,000 from $112,807,000 at December 31, 2014 to $125,499,000 at December 31, 2015, an increase of 11.25%.  Total deposits increased $26,999,000 or 21.53%, ending at $152,367,000 for December 31, 2015, up from $125,368,000 at December 31, 2014.  Total stockholders’ equity increased from $12,889,000 at December 31, 2014 to $13,892,000 at December 31, 2015, an increase of $1,003,000 or 7.78%. 

Asset Quality

Total non-performing loans were zero at December 31, 2015 compared to $144,000 from the same period 2014.  The allowance for loan loss decreased to 1.20% of total loans as of December 31, 2015, compared to 1.63% for the same period 2014.  Management continually monitors the allowance for loan loss to determine its adequacy.

Clarkston State Bank opened in January 1999 and operates two branches in Clarkston and Waterford, 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)  
  12/31/2015 12/31/2014
Assets    
     
Total cash and cash equivalents  24,264   11,908 
Securities – Available for sale  9,649   5,581 
Federal Home Loan Bank stock, at cost  232   409 
     
Loans  127,028   114,680 
Allowance for possible loan losses  (1,529)  (1,873)
Net loans  125,499   112,807 
     
Banking premises and equipment  3,915   4,809 
Deferred tax asset  6,299   6,793 
Other real estate owned  1,581   1,396 
Accrued interest receivable and other assets  863   676 
Total assets $  172,302   $  144,379  
     
Liabilities and Stockholders' Equity    
Liabilities    
Deposits    
Noninterest-bearing demand deposits  82,408   52,919 
Interest-bearing  69,959   72,449 
Total deposits  152,367   125,368 
     
Other Liabilities    
Other borrowings  5,621   5,625 
Accrued interest payable and other liabilities  422   497 
Total liabilities  158,410   131,490 
     
Stockholders' Equity    
Common stock  11,945   11,917 
Paid-in capital  11,826   11,798 
Restricted stock - Unearned compensation  (45)  (24)
Accumulated deficit  (9,789)  (10,819)
Accumulated other comprehensive (loss) income  (45)  17 
Total stockholders' equity  13,892   12,889 
Total liabilities and stockholders' equity $  172,302   $  144,379  
 

 

CLARKSTON FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
        
(Dollars, in thousands)   
 Three Months Ended Twelve Months Ended
 12/31/2015
(Unaudited)
 12/31/2014
(Unaudited)
 12/31/2015
(Unaudited)
 12/31/2014
Interest Income       
Interest and fees on loans$1,483  $1,466  $5,853  $5,802 
Interest on investment securities: 42   34   149   141 
Interest on federal funds sold 5   5   17   9 
Total interest income 1,530   1,505   6,019   5,952 
        
Interest Expense       
Deposits 48   52   209   210 
Borrowings 72   100   295   347 
Total interest expense 120   152   504   557 
        
Net Interest Income 1,409   1,353   5,515   5,395 
Recovery of  Loan Losses (275)  -   (275)  - 
Net Interest Income after recovery of loan losses       
 1,684  1,353   5,790  5,395 
        
Noninterest Income       
Service fees on loan and deposit accounts 159   126   513   518 
Gain on sale of securities -   -   34   - 
Loss on sale of other real estate owned (275)  -   (275)  (3)
Other 21   77   593   322 
Total noninterest income (95)  203   865   837 
        
Noninterest Expense       
Salaries and employee benefits 697   758   2,919   2,893 
Occupancy 141   152   555   584 
Advertising 29   20   107   83 
Outside processing 128   117   464   479 
Professional fees 56   55   208   300 
FDIC insurance 27   21   98   143 
Defaulted loan expense 41   36   213   154 
Other 127   129   544   518 
Total noninterest expense 1,246   1,288   5,108   5,154 
Income before income taxes 343   268   1,547   1,078 
Income Tax Benefit 116   (658)  517   (658)
Net Income$227  $926  $1,030  $1,736 


          
          
CLARKSTON FINANCIAL CORPORATION 
CONSOLIDATED FINANCIAL HIGHLIGHTS 
       
(Dollars in thousands, except share and per share data)     
 Quarter Ended 
       
 12/31/20159/30/20156/30/20153/31/201512/31/2014 
MARKET DATA      
Book value per share$4.26 $4.19 $4.09 $4.04 $3.97  
Market value per share$3.70 $4.30 $3.32 $4.00 $3.77  
Earnings per share - basic & diluted$0.07 $0.10 $0.07 $0.08 $0.30  
Period end common shares 3,261,156  3,261,156  3,261,156  3,261,156  3,246,156  
       
PERFORMANCE RATIOS      
Return on average assets 0.57% 0.91% 0.59% 0.69% 2.59% 
Return on average equity 6.62% 9.99% 6.52% 7.81% 30.80% 
Net interest margin - CSB 4.29% 4.41% 4.42% 4.43% 4.50% 
Efficiency ratio 94.80% 71.40% 79.00% 78.59% 82.80% 
Texas Ratio 10.90% 9.72% 11.60% 11.59% 11.10% 
       
CAPITAL & LIQUIDITY      
Tier 1 Leverage - CSB 8.46% 8.85% 8.55% 8.71% 8.78% 
Common Equity Tier 1 Capital - CSB 9.09% 9.15% 9.18% 9.84% -  
Tier 1 Risk Based Capital - CSB 9.09% 9.15% 9.18% 9.84% 9.68% 
Total Risk Based Capital - CSB 10.36% 10.40% 10.43% 11.10% 10.93% 
Loan to deposit ratio 83.37% 89.40% 94.13% 88.83% 91.47% 
       
ASSET QUALITY      
Gross loan charge-offs$14 $- $3 $249 $-  
Net loan (recoveries) charge-offs$(3)$(16)$(14)$101 $(20) 
Allowance for loan and lease losses to total loans 1.20% 1.47% 1.49% 1.55% 1.63% 
Nonperforming loans to total loans 0.00% 0.00% 0.17% 0.19% 0.13% 
Nonperforming assets to total assets 0.92% 0.89% 1.09% 1.09% 1.07% 


CLARKSTON FINANCIAL CORPORATION
LOAN INFORMATION
    
 (unaudited)  
CATEGORY12/31/2015 12/31/2014
    
Commercial Loans$14,126  $13,776 
Real Estate Mortgage Loans:   
Commercial 102,098   91,497 
1-4 Residential 4,077   5,086 
Construction and other 1,369   4,136 
Total mortgage loans on real estate 107,544   100,719 
Consumer 5,358   185 
Total Loans 127,028   114,680 
Less:  Allowance for loan losses (1,529)  (1,873)
Net Loans$125,499  $112,807 
    
    
 (unaudited)  
ASSET QUALITY12/31/2015 12/31/2014
    
Total nonaccrual loans$-  $144 
Total loans past due 90 days or more and still accruing   -   - 
Total nonperforming loans -   144 
Other real estate owned 1,581   1,396 
Total nonperforming assets$1,581  $1,540 
        

 


            

Contact Data