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: July 15, 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 July 15, 2003.
Item 9. Regulation FD Disclosure.
On July 15, 2003, Clarkston Financial Corporation issued a press release announcing results for the second 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, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Dated: July 15, 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 July 15, 2003 with respect to second quarter earnings.
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EXHIBIT 99.1
PRESS RELEASE: Clarkston Financial Reports 2Q Results
Clarkston Financial Corp. Q2 Net Income Jumps 85%
Midyear Net Income Climbs 79%;
14th Consecutive Profitable Quarter
CLARKSTON, Mich., July 15 — Clarkston Financial Corporation (OTC Bulletin Board: CKSB), the holding company for Clarkston State Bank, posted record earnings, strong growth, and improved performance indices for the second quarter and first half of 2003; Edwin L. Adler, Board Chairman, and Dawn M. Horner, Bank President and CEO, reported the favorable results today.
Second-quarter results
Net income for the second quarter jumped 85% to $323,495, or $0.31 per share, from $174,053, or $0.17 per share, for the second quarter of 2002. The solid growth came from higher interest and noninterest income. Net interest income was $1,010,755, up 21% from $834,000 a year ago. The improvement chiefly reflects loan growth. Noninterest income recorded even stronger gains, rising 249% to $404,922, from $116,084 for Q2 2002. The improvement is attributable to gains realized on the sale of investment securities in order to accommodate loan growth. Sales of mortgage loans and enhanced profitability from branch operations also contributed to the improvement.
Six-month results
Mid-year results were positive as well. Net income rose 79% to $537,378, or $ 0.52 per share, from $299,808, or $0.29 per share, for the first six months of 2002. For the first half of 2003, net interest income increased 19% to $1,893,599, from $1,587,403 from the same period in 2002; and non-interest income jumped 227% to $721,984, from $220,591 at 2002‘s midyear point.
The balance sheet also saw double-digit growth for the first half. At June 30, assets were up 13% to $130,694,323, loans outstanding had risen 39% to $76,335,211, and deposits totaled $117,483,914, up 12% for the year – despite the low interest-rate environment.
Key performance ratios improved substantially. At midyear, ROE was 11.14%, noticeably up from 6.97% a year ago; and ROA was 0.96%, compared with only 0.70% at June 30, 2002.
Mrs. Horner said, “Our team is doing an exceptional job, especially given the soft economic conditions and pressure on margins, including the Fed’s twelfth rate cut last month. Our branch personnel continue to attract new customers and add accounts, despite the low interest-rate environment for deposits. Our lending team turned in a strong performance, in the face of weak business conditions and aggressive competition. In the third quarter, we will continue to enhance our product offering by introducing an internet banking product to our customer base.”
Mr. Adler noted, “We have good services, competitive products and a very talented team in place. We are well positioned to grow and gain additional marketshare as the economy perks up. We expect moderate growth in the second half with a continued emphasis on asset quality.”
Clarkston State Bank opened in January 1999 and serves consumer and commercial customers with a full array of financial services from four branch offices in Clarkston, Waterford, and Independence Township, Michigan. 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 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 consumers’ 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.
- Clarkston Financial Corporation
- Quarterly Financial Summary
- Second Quarter
- 2003 (unaudited)
Three Months Ended
SUMMARY OF OPERATIONS June 30, Percent
2003 2002 Change
Net Interest Income 1,010,755 834,000 21.19%
Provision for Loan Losses 183,000 30,000 510.00%
Non-Interest Income 404,922 116,000 249.07%
Non-Interest Expense 779,182 663,000 17.52%
Pre-Tax Income 453,945 256,544 76.95%
Net Income 323,495 175,000 84.85%
Net Income Per Share $0.31 $0.17
Net Interest Margin (Period Avg.
Assets 3.23% 3.42%
PERFORMANCE RATIOS Quarter
Return on Average Equity 12.80% 8.23%
Return on Average Assets 1.03% 0.72%
Six Months Ended
SUMMARY OF OPERATIONS June 30, Percent
2003 2002 Change
Net Interest Income $1,893,599 $1,587,403 19.29%
Provision for Loan Losses 426,000 45,185 842.79%
Non-Interest Income 721,984 220,591 227.30%
Non-Interest Expense 1,452,955 1,308,555 11.04%
Pre-Tax Income 736,628 454,254 62.16%
Net Income 537,378 299,808 79.24%
Net Income Per Share $0.52 $0.29 79.31%
Net Interest Margin (Period Avg.
Assets) 3.12% 3.39% -7.96%
PERFORMANCE RATIOS Last Twelve Months
Return on Average Equity 11.14% 6.97% 59.83%
Return on Average Assets 0.96% 0.70% 37.14%
December 31,
BALANCE SHEET HIGHLIGHTS 2002
Assets $115,335,000
Loans (Gross) 54,722,000
Deposits 104,923,000
Interest Earning Assets 112,069,000
Shareholders' Equity 9,758,000
Book Value per Share $9.50
Total Shares Outstanding 1,027,112
ALLLP as a % Total Loans 1.27%
March 31, Percent Chg.
BALANCE SHEET HIGHLIGHTS 2003 Prior Qtr.
Assets $122,842,048 6.51%
Loans (Gross) 68,535,823 25.24%
Deposits 111,106,119 5.89%
Interest Earning Assets 119,318,530 6.47%
Shareholders' Equity 9,970,751 2.18%
Book Value per Share $9.71 2.18%
Total Shares Outstanding 1,027,112 0.00%
ALLLP as a $ Total Loans 1.22% -3.94%
June 30 Percent Chg. Percent Chg.
BALANCE SHEET HIGHLIGHTS 2003 Prior Qtr. Prior Yr. End
Assets $130,694,323 6.39% 13.32%
Loans (Gross) 76,335,211 11.38% 39.50%
Deposits 117,483,914 5.74% 11.97%
Interest Earning Assets 123,705,756 3.68% 10.38%
Shareholders' Equity 10,523,780 5.55% 7.85%
Book Value per Share $10.25 5.55% 7.85%
Total Shares Outstanding 1,027,112 0.00% 0.00%
ALLLP as a % Total Loans 1.30% 6.56% 2.36%
/CONTACT: Dawn Horner, President & CEO, or Grant Smith, SVP & CFO, of Clarkston Financial Corporation, +1-248-625-8585; Mike Marcotte of Marcotte Financial Relations, +1-248-656-3873, for Clarkston Financial Corporation/ (CKSB)