SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): April 23, 2003
CLARKSTON FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
| Michigan (State or other jurisdiction of incorporation) | 333-63685 (Commission File Number) | 38-3412321 (IRS Employer Identification no.) |
| 15 South Main Street Clarkston, Michigan (Address of principal executive office) | 48326 (Zip Code) | |
| Registrant's telephone number, including area code:(248) 625-8585 |
Item 7. Financial Statements and Exhibits.
Exhibit
99 Press release dated April 23, 2003.
Item 9. Regulation FD Disclosure.
On April 23, 2003, Clarkston Financial Corporation issued a press release announcing results for the first fiscal quarter. A copy of the press release is attached as Exhibit 99.1.
This information furnished under "Item 9. Regulation FD Disclosure" is intended to be furnished under "Item 12. Results of Operations and Financial Condition" in accordance with SEC Release No. 33-8216.
The information in this Form 8-K and the attached Exhibit shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: April 23, 2003 | CLARKSTON FINANCIAL CORPORATION | |
| By | /s/ J. Grant Smith J. Grant Smith Chief Financial Officer | |
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EXHIBIT INDEX
99.1 Press Release dated April 23, 2003 with respect to first quarter earnings.
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EXHIBIT 99.1
Contacts
- Clarkston Financial Corp. - Dawn Horner, President & CEO; Grant Smith, SVP & CFO - P:248 625-8585
- Marcotte Financial Relations - Mike Marcotte P:248 656-3873
| CLARKSTON FINANCIAL CORP. Q1 EARNINGS JUMP 71% 13th Consecutive Profitable Quarter |
CLARKSTON, Mich., April xx, 2003 — Clarkston Financial Corporation (OTCBB:CKSB) posted record results for the first quarter with earnings rising 71%. This marked the corporation’s 13th consecutive quarter of profitability.
Results were announced today by Edwin L. Adler, Board Chairman, and Dawn M. Horner, Bank President and CEO.
Clarkston Financial Corporation is the holding company forClarkston State Bank, a full service community bank which opened January 4, 1999 and operates four branches in Clarkston, Waterford and Independence Township, Michigan.
Net income for the three months ended March 31, 2003 jumped 71% to $213,883, or $0.21 per share, from $125,381, or $0.12 per share, for the first quarter of 2002.
The strong results for the quarter reflect solid growth in both net interest income and noninterest income and a watchful eye on expenses.
Net interest income rose nearly 17% to $882,844, from $752,824 a year ago, chiefly from loan growth and gains from the sale of securities for portfolio-repositioning purposes.
Non-interest income jumped more than 203% to $317,062, from $104,507 for Q1 2002. The increase resulted from security gains and branch operations fees from growth in the customer base and account transactions, along with fee income from the Bank’s new mortgage group. Despite costs to open the new mortgage department, noninterest expense rose less than 5%.
The results include a loan-loss allowance of $243,000, up substantially from the year-earlier allowance of $15,185.The increase reflects sizeable loan growth; the allowance resides at 1.22% of outstanding loans. Non-performing loans, as a percentage of total loans, actually decreased in Q1 2003 compared with Q4 2002.
Mr. Adler noted that key performance indices for the Bank showed substantial improvement, with ROE rising to 9.50% from 6.09% and ROA increasing to 0.81% from
Clarkston Financial Corp
Q1 2003 results
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0.67% a year ago – and these are more in-line with peers. He added that the Bank is actively seeking a site for a new full-service branch to replace a temporary branch which was closed. The temporary branch was opened when downtown Clarkston’s main thoroughfare was under construction and access to the Bank’s main office was severely restricted.
Mrs. Horner said,” It was an exceptionally good quarter, especially considering the area’s soft business conditions. A year ago, we focused on building our lending team and we are now seeing the fruits of that effort with good-quality loan growth. Our mortgage department is fully operational and generating originations. We are pleased with its fast start and expect this trend to continue.”
“Looking toward the second quarter and second half, we are well positioned to grow deposits and the loan portfolio. We have a substantial amount of quality business in the loan pipeline and expect that we will continue our growth momentum.”
Safe Harbor. This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), which 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 regulation; 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; changes in the national and local economy; and other factors included in the Corporation’s filings with the Securities and Exchange Commission, available via EDGAR. The Corporation assumes no responsibility to update forward-looking statements.
(financial schedules follow)
Clarkston Financial Corporation
Quarterly Financial Summary
First Quarter 2003 Unaudited
SUMMARY OF OPERATIONS Three Months Ended
March 31 Percent
2003 2002 Change
------------------- -------
Net Interest Income 882,844 752,824 17.3%
Provision for Loan Losses 243,000 15,185 1500.3%
Non-Interest Income 317,062 104,507 203.4%
Non-Interest Expense 673,773 644,810 4.5%
Pre-Tax Income 283,133 197,336 43.5%
Net Income 213,883 125,381 70.6%
Net Income Per Share $0.21 $0.12
Net Interest Margin (Qtrly Avg. Assets) 2.97% 3.43%
PERFORMANCE RATIOS
Return on Average Equity LTM 9.50% 6.09%
Return on Average Assets LTM 0.81% 0.67%
BALANCE SHEET HIGHLIGHTS December 31 March 31 Percent Chg.
2003 2002 Prior Qtr.
------------------------- ------------
Assets $115,335,000 $122,842,048 6.51%
Loans (Gross) 54,722,000 68,535,823 25.24%
Deposits 104,923,000 111,106,119 5.89%
Interest Earning Assets 112,069,000 119,318,530 6.47%
Shareholders' Equity 9,758,000 9,970,751 2.18%
Book Value per Share $9.50 $9.71 2.18%
Total Shares Outstanding 1,027,112 1,027,112 0.00%
ALLLP as a % Total Loans 1.27% 1.22% -3.94%