SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2002
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to ________
Commission file number: 333-63685
CLARKSTON FINANCIAL CORPORATION
(Exact name of small business issuer as specified in its charter)
MICHIGAN (State of other jurisdiction of incorporation or organization) | 38-3412321 (I.R.S. Employer Identification No.) |
15 South Main Street, Clarkston, Michigan 48346
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (248) 625-8585
Check whether the issuer: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No
The number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 1,026,012 shares of the Company’s Common Stock (no par value) were outstanding as of June 30, 2002.
Transitional Small Business Disclosure Format (check one): Yes No X
INDEX
Page Number(s) | ||
Part I. | Financial Information (unaudited): | |
Item 1. Consolidated Financial Statements............................................................. Notes to Consolidated Financial Statements.............................................. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.......................................... | 3-7 8-11 12-14 | |
Part II. | Other Information: | |
Item 1. Legal Proceedings........................................................................................ Item 2. Changes in Securities and Use of Proceeds................................................. Item 3. Defaults Upon Senior Securities................................................................. Item 4. Submission of Matters to a Vote of Security Holders................................ Item 5. Other Information....................................................................................... Item 6. Exhibits and Reports on Form 8-K............................................................. | 15 15 15 15 15 15 | |
Signatures | ..................................................................................................................... | 16 |
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Part I Financial Information (unaudited)
CLARKSTON FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEET
June 30, 2002 (unaudited) and December 31, 2001
(dollars in thousands, except per share data)
June 30, December 31, 2002 2001 ---------------- ------------ (Unaudited) ASSETS Cash and Cash Equivalents Total cash and due from banks........................ $ 1,735 $ 1,856 Federal funds sold.................................. 2,799 3,975 ------------- ---------- Total Cash and Cash Equivalents................. 4,534 5,831 Securities Held to Maturity................................. 15,744 5,605 Securities Available for Sale, at fair value................ 43,821 36,905 Loans, less Loan Loss Reserve Total loans.......................................... 40,171 34,455 Allowance for loan losses............................ (511) (419) ------------- ---------- Net Loans............................................ 39,660 34,036 Net Property and Equipment.................................. 1,402 794 Accrued interest receivable................................. 456 441 Deferred Tax Asset.......................................... 153 140 Other Assets................................................ 165 168 ------------ ---------- Total Assets.................................... $ 105,935 $ 83,920 ============ ========== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits Noninterest-bearing.................................. 12,195 9,230 Interest-bearing..................................... 83,887 64,930 ------------ ---------- Total deposits.................................. 96,082 74,160 Accrued Expenses and Other Liabilities............... 911 1,093 Shareholders' Equity Common stock, no par value: 10,000,000 Shares authorized; 1,026,012 shares issued and outstanding as of June 30, 2002 and December 31, 2001..................... 4,306 4,306 Capital surplus...................................... 4,306 4,306 Retained Earnings.................................... 388 88 Accumulated other comprehensive income (loss)........ (58) (33) ------------- ---------- Total Shareholder Equity....................... 8,942 8,667 ------------ ---------- Total Liabilities and Shareholders' Equity.... $ 105,935 $ 83,920 ============= ==========
See accompanying notes to consolidated financial statements
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CLARKSTON FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME
Three and Six Month Periods Ended June 30, 2002 and June 30, 2001
(dollars in thousands, except per share data)
(unaudited)
Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, 2002 June 30, 2001 June 30, 2002 June 30, 2001 ------------- ------------- ------------- ------------- (unaudited) (unaudited) (unaudited) (unaudited) Interest Income Loans, including fees ......................... $745 $ 590 $1,437 $ 1,167 Securities..................................... 739 468 1,402 933 Federal Funds sold............................. 17 38 35 100 --------- --------- --------- --------- Total interest income..................... 1,501 1,096 2,874 2,200 Interest Expense Deposits....................................... 667 597 1,287 1,029 Other.......................................... 0 0 0 0 --------- --------- --------- --------- Total interest expense.................... 667 597 1,287 1,209 Net Interest Income................................... 834 499 1,587 991 Provision for loan losses............................. 30 24 45 41 --------- --------- --------- --------- Net interest income After provision for loan losses....................... 804 475 1,542 950 Noninterest income Gains on sale of securities...................... 21 17 41 38 Other income..................................... 95 80 180 155 --------- --------- --------- --------- Total noninterest income.................. 116 97 221 193 Noninterest expense Salaries and benefits............................ 347 207 690 404 Occupancy expense of premises.................... 63 36 126 74 Furniture and equipment expense.................. 42 38 88 70 Computer and data processing expenses............ 60 50 120 97 Advertising and public relations................. 27 34 46 52 Professional fees................................ 30 21 72 57 Amortization of deposit premium and conversion cost.......................... 8 6 16 2 Other expense.................................... 86 37 151 68 --------- --------- --------- --------- Total noninterest expense................. 663 429 1,309 834 --------- --------- --------- --------- Profit before federal income tax...................... 257 143 454 309 Federal income tax.................................... 82 45 154 97 --------- --------- --------- --------- Net profit ........................................... 175 $ 98 300 $ 212 ========= ========= ========= ========= Basic and diluted profit per share.................... $ .17 $ .10 $ .29 $ .21 ========= ========= ========= =========
See accompanying notes to consolidated financial statements.
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CLARKSTON FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three and Six Month Periods Ended June 30, 2002 and June 30, 2001
(dollars in thousands)
(Unaudited)
Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2002 2001 2002 2001 ---- ---- ---- ---- Net profit as Reported............................ $175 $ 98 $300 $ 212 Other Comprehensive Income (loss), Net of Tax: Change in unrealized gain / loss on securities available for sale...................... 473 (6) (25) 17 ----------- ----- ---------- ------ Comprehensive Profit.............................. $648 $ 92 $275 $ 229 =========== ====== ========== =======
See accompanying notes to consolidated financial statements.
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CLARKSTON FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Six Months ended June 30, 2002
(dollars in thousands)
(Unaudited)
Accumulated Other Total Common Capital Retained Comprehensive Shareholders' Stock Surplus Earnings Income Equity --------- ------- --------- ------------------ -------------- Balance December 31, 2001..................... $ 4,306 $ 4,306 $ 88 $ (33) $ 8,667 Net income for six months Ended June 30, 2002 (unaudited)............... 300 300 Decrease in fair market value of securities available for sale............................ 0 0 0 (25) (25) -------- ------- -------- --------- ---------- Balance June 30, 2002......................... $ 4,306 $ 4,306 $ 388 $ (58) $ 8,942 ======== ======= ======== ========= =========
See accompanying notes to consolidated financial statements.
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CLARKSTON FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
Six Months ended June 30, 2002 and June 30, 2001
(dollars in thousands)
(unaudited)
Six Months Six Months Ended Ended June 30, June 30, 2002 2001 ---------- ---------- Net Cash Provided by Operating Activities: Net cash provided by operating activities..................... $ 295 $ 242 Cash Flows from Investing Activities: Net increase in loans......................................... (5,716) (3,775) Purchase of held-to-maturity securities....................... (10,139) (2,906) Proceeds from maturities of held-to-maturity securities....... 0 10,605 Proceeds from sales of held-to-maturity securities............ 0 3,243 Purchase of available-for-sale securities..................... (18,964) (30,465) Proceeds from sales of available-for-sale securities.......... 11,969 18,806 Property and equipment expenditures........................... (664) (439) --------------------- --------------------- Net cash provided by investing activities..................... (23,514) Cash Flows from Financing Activities: Increase in deposits.......................................... 21,922 7,664 --------------------- --------------------- Net increase in cash and cash equivalents............................ (1,297) 2,975 Cash and cash equivalents at beginning of year....................... 5,831 3,412 --------------------- --------------------- Cash and cash equivalents at June 30, 2002 and 2001.................. $4,534 $ 6,387 ===================== =====================
See accompanying notes to consolidated financial statements.
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CLARKSTON FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2002 (unaudited) and December 31, 2001
NOTE 1 – BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended June 30, 2002, are not necessarily indicative of the results that may be expected for the year ending December 31, 2002. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Proxy Statement dated April 1, 2002 containing audited financial statements as of December 31, 2001, 2000 and 1999.
NOTE 2 – COMPUTATION OF EARNINGS PER SHARE
Basic earnings (loss) per share is based on net income (loss) divided by the weighted average number of shares outstanding during the period.
NOTE 3 - PRINCIPLES OF CONSOLIDATION
The accompanying consolidated financial statements include the accounts of Clarkston Financial Corporation (the "Company"), and its wholly-owned subsidiary, Clarkston State Bank (the "Bank"). All significant intercompany accounts and transactions have been eliminated in consolidation.
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CLARKSTON FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2002 (unaudited) and December 31, 2001
NOTE 4 - SECURITIES
The amortized cost and fair values of securities were as follows (dollars in thousands):
Available for Sale Gross Gross Estimated Amortized Unrealized Unrealized Market Cost Gains Losses Value --------- ---------- ---------- ------- June 30, 2002 (Unaudited) ------------------------- Taxable variable rate demand Municipal revenue bonds, Short term corporate Commercial paper, and bonds of government agencies.......... $43,909 $ 198 $ (286) $ 43,821 ======= ======= ========== ======== Held to Maturity June 30, 2002 (Unaudited) ------------------------- Taxable variable rate demand Municipal revenue bonds, Short term corporate Commercial paper, and bonds of government agencies.......... $15,744 $ 47 $ (65) $ 15,726 ======= ======= ========== ========
Contractual maturities of debt securities at June 30, 2002, were as follows. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Available-for-Sale Securities ------------------------------- Amortized Estimated Cost Market Value --------- ------------ (dollars in thousands) Due from 2002 to 2003.................................... $ 0 $ 0 Due from 2003 to 2005.................................... 0 0 Due from 2005 to 2007.................................... 998 1,008 Due from 2007 to 2032.................................... 42,911 42,813 ------- ------- $43,909 $43,821 ======= ======= Held-To-Maturity ------------------------------- Amortized Estimated Cost Market Value --------- ------------ Due from 2002-2003....................................... $ 0 $ 0 Due from 2003-2005....................................... 0 0 Due from 2005-2007....................................... 0 0 Due from 2007-2032....................................... 15,744 15,726 ------- ------- $15,744 $15,726 ======= =======
(Continued)
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CLARKSTON FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2002 (unaudited) and December 31, 2001
NOTE 5 - LOANS
Loans are as follows (dollars in thousands):
June 30, December 31, 2002 2001 --------------- ------------ (Unaudited) Commercial......................................... $31,189 $25,299 Mortgage........................................... 5,914 5,441 Consumer........................................... 3,068 3,715 -------- -------- 40,171 34,455 Allowance for loan losses.......................... 511 419 -------- -------- $39,660 $ 34,036 ======= ========
Activity in the allowance for loan losses is as follows (dollars in thousands):
Ended Year Ended June 30, 2002 December 31, (Unaudited) 2001 ----------- ------------ Balance at beginning of period..................... $ 419 $ 379 Provision charged to operating expense...... 45 90 Net loan (charge-offs) recoveries.................. 47 (50) ----- ------------ Balance at end of period........................... $ 511 $ 419 ===== ============ Allowance for loan losses as a percentage of loans at end of period...................... 1.27% 1.21% ===== ============
(Continued)
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CLARKSTON FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2002 (unaudited) and December 31, 2001
NOTE 6 - PREMISES AND EQUIPMENT - NET
Premises and equipment are as follows (dollars in thousands):
(unaudited) June 30, 2002 December 31, 2001 ------------- ----------------- Building and improvements.............................. $1,050 $ 404 Furniture and equipment 670 652 -------- -------- Total Bank premises and equipment............... 1,720 1,056 Less accumulated depreciation.......................... 318 262 -------- -------- Net carrying amount............................. $1,402 $ 794 ====== =======
NOTE 7 - DEPOSITS
Interest-bearing deposits are summarized as follows (dollars in thousands):
June 30, December 31, 2002 2001 -------------- ------------ Demand deposit accounts.................................... $ 5,008 $ 2,233 Money market accounts...................................... 24,342 17,291 Savings accounts........................................... 6,606 5,692 Certificates of Deposit.................................... 47,931 39,714 -------- -------- $ 83,887 $ 64,930 ======== ========
(Continued)
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Item 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
General
Clarkston Financial Corporation (the "Company") is a Michigan corporation incorporated on May 18, 1998. The Company is the bank holding company for Clarkston State Bank (the "Bank"). The Bank commenced operations on January 4, 1999. The Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank provides a full range of commercial and consumer banking services, primarily in Clarkston, Michigan and the surrounding market area primarily located in north Oakland County, Michigan. The Bank operates five customer service locations including two full service branches.
Financial Condition
Total assets of the Company increased by $22.0 million or 26.2% to $105.9 million at June 30, 2002, from $83.9 million at December 31, 2001. The increase in assets is primarily attributable to the Bank continuing to attract customer deposits. The Company anticipates that the Bank's assets will continue to increase during 2002, which is the Bank's fourth full year of operations.
Cash and cash equivalents, which include federal funds sold and short-term investments, decreased $1.3 million or 22.4% to $4.5 million at June 30, 2002 from $5.8 million at December 31, 2001. The decrease is primarily the result of reinvesting cash into investments in an effort to get better utilization and additional spread income.
Securities increased $17.1 million or 40.2% to $59.6 million at June 30, 2002 from $42.5 million at December 31, 2001. The increase is the result of deposit growth and efforts to increase spread income by keeping less cash in federal funds.
Total loans increased by $5.7 million or 16.5% to $40.2 million at June 30, 2002, from $34.5 million at December 31, 2001. Management believes that total loans will continue to increase over time as economic and local market conditions improve.
The allowance for loan losses as of June 30, 2002 was $511,000, representing approximately 1.27% of total loans outstanding, compared to $419,000 as of December 31, 2001.
Deposit growth continues to be robust increasing $21.9 million or 30% to $96.1 million for the six months ended June 30, 2002, from $74.2 million at December 31, 2001. The deposit growth is attributable to aggressively marketing the three new Bank branch offices opened in 2001.
As of December 31, 2001, the Company had an accumulated profit of $88,000 and as of June 30, 2002, the retained earnings was $388,000. The retained earnings continue to improve as the Bank has increased its net interest and non-interest income while continuing to maintain low operating expenses.
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Results of Operations
The Company's net profit was $175,000 for the second quarter of 2002 compared to net profit of $98,000 for the second quarter of 2001. The Bank began operations in 1999 and has earned a profit every month since January, 2000. Net profit for the six month period ended June 30, 2002 was $300,000 and included a federal income tax provision of $154,000.
Interest income for the second quarter of 2002 was $1.5 million, an increase of 36.4% from interest income of $1.1 for the second quarter of 2001. Interest income for the six months ended June 30, 2002 was $2.9 million, an increase of 31.8% from $2.2 million for the six months ended June 30, 2001. This increase resulted primarily from the increase in loans and securities. Interest expense was $667,000 for the three months ended June 30, 2002, an increase of 11.7% from interest expense of $597,000 for the three months ended June 30, 2001. Interest expense was $1.3 million for the six months ended June 30, 2002, a slight increase of 8.3% from interest expense of $1.2 million for the six months ended June 30, 2001. This consisted of interest paid on interest bearing deposits.
The Company had an allowance for loan losses of approximately 1.27% of total loans at June 30, 2002. The provision expense for loan loss for the three month period ended June 30, 2002, was $30,000. Management believes the current rate of providing for the loan loss reserve is adequate.
In each accounting period, management evaluates the problems and potential losses in the loan portfolio. Moreover, consideration is also given to off-balance sheet items that may involve credit risk, such as commitments to extend credit. Management's evaluation of the allowance is further based on consideration of actual loss experience, the present and prospective financial condition of borrowers, adequacy of collateral, industry concentrations within the portfolio and general economic conditions. The results of these evaluations are reflected in the allowance and periodic provision for credit losses. Please note, the Bank has no other off-balance sheet liabilities other than commitments to extend credit in the form of letters and lines of credit.
The primary risk element considered by management regarding each installment and residential real estate loan is the lack of timely payments. Management has a reporting system that monitors past due loans and has adopted policies to pursue its creditor's rights in order to preserve the Bank's position. The primary risk elements concerning commercial loans are the financial condition of the borrower, the sufficiency of the collateral and lack of timely payment. Management has a policy of requesting and reviewing annual financial statements from its commercial loan customers and periodically reviews the existence and value of collateral for selected loans.
Noninterest expense was $663,000 for the second quarter of 2002, a $234,000 (or 54.5%) increase over the second quarter of 2001, the increase is primarily attributable to increases in salaries and benefits due to the increase of full time equivalents and normal raises given to employees. Noninterest expense was $1.3 million for the six months ended June 30, 2002, an increase of $475,000 or 57.0%, an increase over the six months ended June 30, 2001. These increases are consistent with management's plans to grow the assets of the Bank as noted by the opening of several offices during 2001.
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Liquidity and Capital Resources
Liquidity is measured by our ability to raise funds through deposits, borrowed funds, capital or cash flow from the repayment of loans and investment securities. These funds are used to meet deposit withdrawals, maintain reserve requirements, fund loans and support our operations. Liquidity is primarily achieved through the growth of deposits and liquid assets such as securities available for sale, matured securities, and federal funds sold. Asset and liability management is the process of managing our balance sheet to achieve a mix of earning assets and liabilities that maximizes profitability, while providing adequate liquidity.
Our liquidity strategy is to fund loan growth with deposits and to maintain an adequate level of short- and medium-term investments to meet typical daily loan and deposit activity. Although deposits from depositors located in our market area have consistently increased, there is no assurance that deposit growth alone will be sufficient to fund our loan growth and provide monies for additional investing activities.
Shareholders' equity is a non-interest bearing source of funds that provides support for asset growth. The Company obtained its initial equity capital in an initial public offering of its common stock in November, 1998. The Company believes it has sufficient capital for its present size, however, given the Company's growth strategy, the Company expects it may be necessary to raise additional equity capital within the next twelve months.
Forward Looking Statements
This report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Reform Act of 1995, and is including this statement for purposes of these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project" or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on the operations and future prospects of the Company and the subsidiaries include, but are not limited to, changes in: interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company's market area and accounting principles, policies and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Further information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission.
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PART II - OTHER INFORMATION
Item 1. | Legal Proceedings. |
From time to time, we may be involved in various legal proceedings that are incidental to our business. In our opinion, we are not a party to any current legal proceedings that are material to our financial condition, either individually or in the aggregate. | |
Item 2. | Changes in Securities and Use of Proceeds. |
None. | |
Item 3. | Defaults Upon Senior Securities. |
None. | |
Item 4. | Submission of Matters to a Vote of Securities Holders. |
(a) | The annual meeting of the shareholders of the Corporation was held on May 7, 2002. | ||||
(b) | The following directors were elected at the annual meeting for a term expiring in 2005: Louis D. Beer and William J. Clark. Other directors whose terms continued after the meeting are as follows: Edwin L. Adler, David T. Harrison, John H. Welker, Charles L. Fortinberry, Bruce H. McIntyre and Robert A. Olsen. | ||||
(c) | At the annual meeting directors were elected for terms expiring in 2005: | ||||
Director Nominee Louis D. Beer William J. Clark | For 862,793 862,793 | Against 0 0 | Abstain 5,725 5,725 |
Item 5. | Other Information. |
None. | |
Item 6. | Exhibits and Reports on Form 8-K. |
(a) | Exhibits | |||
99.1 | Certificate of the Chief Executive Officer of Clarkston Financial Corporation pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. [To be filed by amendment.] | |||
99.2 | Certificate of the Chief Financial Officer of Clarkston Financial Corporation pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
(b) | Reports on 8-K - None. |
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SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Quarterly Report on Form 10-QSB for the quarter ended June 30, 2002, to be signed on its behalf by the undersigned, thereunto duly authorized.
CLARKSTON FINANCIAL CORPORATION /s/ Edwin L. Adler Edwin L. Adler Chairman of the Board /s/ J. Grant Smith J. Grant Smith Chief Financial Officer |
DATE: August 14, 2002
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EXHIBIT INDEX
Exhibit | Description |
99.1 | Certificate of the Chief Executive Officer of Clarkston Financial Corporation pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. [To be filed by amendment.] |
99.2 | Certificate of the Chief Financial Officer of Clarkston Financial Corporation pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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EXHIBIT 99-2
I, J. Grant Smith, Chief Financial Officer of Clarkston Financial Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) the Quarterly Report on Form 10-QSB for the quarterly period ended June 30, 2002 which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and
(2) the information contained in the Quarterly Report on Form 10-QSB for the quarterly period ended June 30, 2002 fairly presents, in all material respects, the financial condition and results of operations of Clarkston Financial Corporation.
Dated: August 14, 2002
/s/ J. Grant Smith J. Grant Smith Chief Financial Officer |
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