Clarkston Financial (CKSB) 8-K Results of Operations and Financial Condition

Exhibit 99.1

PRESS RELEASE: Clarkston Financial Corporation Reports Q4 & 12 month Results

CLARKSTON, Mich., Feb. 14 /PRNewswire-FirstCall/ — Clarkston Financial Corporation (OTC Bulletin Board: CKSB), the holding company for Clarkston State Bank and Huron Valley State Bank, reported net losses for the fourth quarter and 12-months ended December 31, 2006 from increased loan loss provisioning and its de novo bank, Huron Valley State Bank.

For the fourth quarter of 2006, the net loss was $264,000, or $0.22 per diluted share, compared with a net loss of $414,000, or $0.33 per diluted share, for the final quarter of 2005.

For the 12 months ended December 31, 2006, the net loss was $712,000, or $0.57 per diluted share, compared with a net loss of $24,000, or $0.02 per diluted share, for 2005. The results include a Loan Loss Provision of $2,750,000, equivalent to $2.18 per diluted share, for 2006 and $1,930,000, equivalent to $ 1.55 per diluted share, for 2005.

For the year, net interest income rose 7% to $6,514,000, from $6,083,000, from loan growth and improved margins in the last half of the year. Interest expense rose 42%, year-over-year, reflecting the highly competitive nature of the deposit market and bank deposits moving into longer-term, higher-cost instruments, such as CDs, as interest rates rose in the second half. Noninterest income was generally flat for both periods, $937,000 in 2006, compared with $ 939,000 in 2005. Other Operating Expenses, such as salaries and benefits and occupancy, etc., rose 9%. The increase reflects the first full year of operating expenses for Huron Valley State Bank.

Assets, loans and deposits increased for the year. Total assets reached $220, 273,000 at yearend 2006, up 13% from $195,576,000 the year before. Loans outstanding rose 18% to $157,715,000 at the close of 2006, from $133,230,000 a year ago. Deposits stood at $180,683,000, or 12% above deposits of $161,332,000 at the end of 2005.

J. Grant Smith, President and Chief Operating Officer, said: “We offer no excuses for the poor performance we have experienced over the past year. As shareholders and management we have vigorously addressed the asset quality problem within Clarkston State Bank. We are very much committed to working through our operational issues and have acted decisively over the past year.

“We completed the final stage of our internal asset review, which included a review of every material commercial loan relationship. This review was conducted in conjunction with outside independent credit/loan review professionals. Every commercial loan relationship in excess of $250,000 was reviewed by outside professionals; and senior management reviewed virtually all commercial loans under $250,000.”

Mr. Smith noted that credit oversight has been moved from the bank level to the corporate level to both improve efficiency and assure its integrity.

He added, “As a result of completing this review, the Company experienced an increase in nonperforming loans. Nonperforming loans, as a percentage of total loans, was 2.1% at year end. However, one credit, which represented $710,405, is included in the nonperforming portfolio but we anticipate that it may be resolved favorably.

“There also have been several personnel changes in the later half of the year, including a new senior lender at Clarkston State Bank and a change in the president’s position at Huron Valley State Bank. We have been aggressive in dealing with these issues and have completed the final phase of our restructuring program.”

Edwin L. Adler, Board Chairman and CEO, added. “We have set the stage for our turnaround and a return to profitability. The board has complete confidence in our Team. The board members and I are also very grateful for the continued trust and support of customers and shareholders.”

Clarkston Financial Corporation is the holding company for Clarkston State Bank and Huron Valley State Bank. Clarkston State Bank opened in January 1999 and operates five branches and one loan center in Clarkston, Waterford, and Independence Township. Huron Valley State Bank opened in Milford, Mich., in August 2005. Clarkston Financial Corp. owns 55% of the 820,000 common shares outstanding, with Milford-area investors owning the balance.

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; changes in the national and local economy; and other factors included in the Corporation’s filings with the Securities and Exchange Commission, available free online via EDGAR at SEC.GOV. The Corporation assumes no responsibility to update forward- looking statements.

More (financial schedules follow)

CLARKSTON FINANCIAL CORP
Historical Balance Sheet Data
000’s Omitted

	UNAUDITED
	12/31/06		09/30/06		12/31/05
Total Assets	$	220,273	$	218,875	$	195,576
Loans HFS		120		577		314
Total Portfolio Loans, Net of
Unearn. Disc		157,715		152,194		133,544
Loan Loss Reserve		2,750		2,055		1,930
Non-accrual Loans		2,431		1,677		1,066
Renegotiated Loans		0		0		0
Loans 90 days + Still Accruing		855		718		1,413
Total Non-performing Loans		3,286		2,395		2,479
Total Securities		43,864		47,324		48,982
Premises/Furniture & Fixtures		4,730		4,764		3,911
Repossessed Assets		3		16		205
Noninterest-bearing Deposits		23,922		22,551		24,391
Interest bearing Deposits		158,119		159,746		137,699
Total Deposits		182,041		182,297		162,090
CD's>$100K		51,961		53,538		37,668
Trust Preferred		4,000		4,000		4,000
Common Equity		14,766		14,573		15,131
Common Shares Outstanding at
End of Period		1,262		1,246		1,246
Goodwill/Intangibles		0		0		0
Total borrowings		15,200		13,700		10,200

CLARKSTON FINANCIAL CORP
Historical Balance Sheet Data
000’s Omitted

	UNAUDITED
	2006		2005		2004
Total Assets	$	220,273	$	195,576	$	163,379
Loans HFS		120		314		644
Total Portfolio Loans, Net of
Unearn. Disc		157,715		133,230		111,542
Loan Loss Reserve		2,750		1,930		1,280
Non-accrual Loans		2,431		1,066		0
Renegotiated Loans		0		0		0
Loans 90 days + Still Accruing		855		1,413		532
Total Non-performing Loans		3,286		2,479		532
Total Securities		43,864		48,982		44,384
Premises/Furniture & Fixtures		4,730		3,911		2,395
Repossessed Assets		3		205		0
Noninterest-bearing Deposits		23,922		24,391		21,006
Interest bearing Deposits		158,119		137,699		112,260
Total Deposits		182,041		162,090		133,266
CD's>$100K		51,961		37,668		27,598
Trust Preferred		4,000		4,000		4,000
Common Equity		14,766		15,131		12,201
Common Shares Outstanding at
End of Period		1,262		1,246		1,046
Goodwill/Intangibles		0		0		0
Total borrowings		15,200		10,200		12,200

CLARKSTON FINANCIAL CORP
Historical Income Stmt Data
000’s Omitted

	UNAUDITED Quarter Ended									UNAUDITED Year Ended December 31,
	12/31/06			09/30/06			12/31/05			2006			2005			2004
Total Interest
Income	$	3,630		$	3,485		$	2,935		$	13,366		$	10,921		$	8,166
Interest Expense		1,939			1,786			1,347			6,852			4,838			2,996
Net Interest Income		1,691			1,699			1,638			6,514			6,083			5,170
Provision for Loan
Losses		725			269			104			2,360			1,367			330
Security
Gains/(Losses)		(24	)		0			(2	)		(21	)		1			(26	)
Gain on loan sales		67			82			58			268			210			161
Service fees on loan
and deposit accounts		175			163			157			692			744			637
Other Income		5			(9	)		(24	)		(2	)		(16	)		12
Total Other Income		223			236			139			937			939			784
Salary & Benefit
Expense		834			808			728			3,272			2,947			1,908
Occupancy Expense		285			259			256			1,078			858			517
Other Expense		482			474			558			1,987			2,033			1,544
Total Other Expense 1,601		1,541			1,542			6,337			5,838			3,969
EBIT		(412	)		125			132			(1,246	)		(183	)		1,655
Tax		(103	)		86			113			(297	)		(19	)		378
Minority Interest		44			66			140			237			140			0
Net Income		(265	)		105			159			(712	)		(24	)		1,277
Reported EPS
(diluted)		($ 0.21	)	$	0.08		$	0.09			($ 0.57	)		($ 0.02	)	$	1.20
Dividends Per Share	$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00
Selected Financial Ratios:
Total Risk Based
Capital		12.28	%		12.03	%		14.82	%		12.28	%		14.82	%		14.50	%
Return on Average
Assets		-0.48	%		0.20	%		0.33	%		-0.34	%		-0.01	%		0.84	%
Return on Average
Equity		-7.21	%		2.94	%		4.18	%		-5.09	%		-0.16	%		9.34	%
Net Interest Margin		3.29	%		3.60	%		3.55	%		3.34	%		3.51	%		3.54	%
Average Assets		219,364			215,048			191,921			209,652			182,796			152,235
Net charge-offs ($)		30			(226	)		53			1,540			717			142
Gross charge-offs ($)		107			17			55			1,890			720			254

SOURCE Clarkston Financial Corporation

/CONTACT: Grant Smith, President and COO of Clarkston Financial Corp., +1- 248-922-6945; or Mike Marcotte of Marcotte Financial Relations, +1-248-656-3873