updated 3/10/2011 9:47:02 AM ET 2011-03-10T14:47:02

CLARKSTON, Mich., March 10, 2011 (GLOBE NEWSWIRE) -- Clarkston Financial Corporation (OTCBB:CKFC), the holding company for Clarkston State Bank, today reported a net income of $36,000 or $0.02 per basic and diluted common share for the three months ended December 31, 2010 compared to a net loss of $3,403,000 or $(2.33) per share for the three months ended December 31, 2009. The net loss for the twelve months ended December 31, 2010 was $1,330,000 or $(0.60) per share compared to a net loss of $4,409,000 or $(3.02) per share for the same period in 2009.

Total assets at December 31, 2010 were $103,711,000 compared to $110,169,000 at December 31, 2009, a decline of $6,458,000 or 5.86%. The decrease in total assets is consistent with management's strategic plan to reduce costs and preserve capital. The allowance for possible loan losses decreased to 3.20% of total loans as of December 31, 2010, compared to 4.09% for the same period 2009. The decline in the allowance for loan loss percentage represents a strengthening of the loan portfolio, thus eliminating the need for a provision expense in the fourth quarter. The improved loan portfolio is a direct result of stronger controls over loan underwriting and an increased focus on credit administration.

J. Grant Smith, CEO, said, "The focus remains on strengthening our asset quality and completing our recapitalization plan. The Bank continues to see improvements in the level of non-performing loans. Total non-performing loans have significantly decreased to $2,700,000 at December 31, 2010 compared to $6,630,000 from the same period 2009, a decline of $3,930,000, or 59.28%. The net interest margin of the Bank is a robust 4.55% for the quarter ended December 31, 2010. In addition to the continued improvement in asset quality and net interest margin, liquidity also remains strong. We are very excited about our future as we get closer to completing our recapitalization plan."

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 Audited
  Dec 2010 Dec 2009
     
Total assets $103,711 $110,169
     
Securities available for sale 8,748 12,747
     
Loans 80,160 90,504
Allowance for possible loan losses (2,566) (3,700)
Net loans 77,594 86,804
     
Banking premises and equipment 4,731 4,864
     
Noninterest-bearing demand deposits 20,051 19,097
Interest bearing deposits 80,515 84,235
Total deposits 100,566 103,332
     
Federal Home Loan Bank advances  --  4,250
Other borrowings 5,330 3,975
     
Total Stockholders' equity (deficit) (2,736) (1,943)
Common Shares Outstanding at End of Period 2,226 1,461
     
Selected Financial Ratios:    
Total Risk Based Capital - CSB 3.91% 3.32%
Tier 1 Leverage - CSB 2.26% 1.72%
Return on Average Assets -1.24% -3.60%
Return on Average Equity -72.55% -182.80%
Net Interest Margin - CFC 3.85% 3.10%
Net Interest Margin - CSB 4.18% 3.24%
     
Average Assets 107,193 122,635
     
Loans past due 90 days or more and still accruing  --   -- 
Nonaccrual Loans 2,700 6,630
Total Non-performing Loans 2,700 6,630
     
Other real estate owned 4,365 1,975
     
Net charge-offs ($) 2,044 4,094
Gross charge-offs ($) 2,257 4,436
 
 
CLARKSTON FINANCIAL CORPORATION
Historical Income Statement Data
000's omitted
         
  Unaudited Unaudited Audited
  Three

Months

Ended
Three

Months

Ended
Twelve

Months

Ended
Twelve

Months

Ended
  Dec 2010 Dec 2009 Dec 2010 Dec 2009
         
Total interest income $1,310 $1,442 $5,428 $6,183
Total interest expense 307 539 1,618 2,658
         
Net Interest Income 1,004 903 3,810 3,525
Provision for loan losses  --  2,820 910 3,380
Gain on sale of securities 55 (1) 105 140
Service fees on loan and deposit accounts 151 184 608 742
Other (35) (246) 64 38
         
Total Other Income 172 (63) 777 920
         
Salaries and employee benefits 449 491 1,935 2,227
Occupancy 148 125 561 647
Other 542 807 2,511 2,600
         
Total Other Expense 1,140 1,423 5,007 5,474
Net Income $36 ($3,403) ($1,330) ($4,409)
Earnings Per Share - Basic and Diluted $0.02 ($2.33) ($0.60) ($3.02)
CONTACT: Clarkston Financial Corporation
         Grant Smith, CEO
         248-922-6945

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