# SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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# 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, 2003
                                                        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:333-63685CLARKSTON 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

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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:
1,028,922 shares of the Companys Common Stock (no par value) were outstanding as of
June 30, 2003.

Transitional Small Business Disclosure Format (check one):    Yes No X



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INDEX

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | PageNumber(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..........................................Item 3.                                                                          
Controls and Procedures............................................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 3-7 
8-15  
16-19    
20
|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............................................................. | 20
20
20
20
21
21       
|Signatures | .....................................................................................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 22                      

2

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Part I     Financial Information (unaudited)

CLARKSTON FINANCIAL CORPORATIONCONSOLIDATED BALANCE SHEET
June 30, 2003 (unaudited) and December 31, 2002(dollars in thousands)

`June 30,              December 31,
                                                                                  2003                    2002
                                                                               ----------            ------------
                                                                               (Unaudited)
ASSETS

Cash and Cash Equivalents
       Total cash and due from banks................................          $     4,296                $  1,508
        Federal funds sold..........................................                5,846                   2,979
                                                                        -----------------       -----------------
            Total Cash and Cash Equivalents.........................               10,142                   4,487

Securities Available for Sale, at fair value........................               43,236                  54,742

Loans, less Loan Loss Reserve
       Total loans..................................................               76,335                  54,722
       Allowance for loan losses....................................                 (996)                   (696)
       Net Loans....................................................               75,339                  54,026

Net Property and Equipment..........................................                1,340                   1,400
Accrued interest receivable.........................................                  344                     555
Deferred Tax Asset..................................................                    -                      45
Other Assets........................................................                  121                      80
                                                                        -----------------      ------------------
            Total Assets............................................          $   130,522               $ 115,335
                                                                        =================       =================
LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits
       Noninterest-bearing..........................................               20,630                  14,797
       Interest-bearing.............................................               98,778                  90,126
                                                                        -----------------       -----------------
            Total deposits..........................................              119,408                 104,923
       Accrued Expenses and Other Liabilities.......................                  519                     654
       Deferred Tax Liability.......................................                   72                       -
Shareholders' Equity
       Common stock, no par value: 10,000,000                                       4,329                   4,311
             Shares authorized; 1,028,922 shares
             issued and outstanding as of June 30,
             2003 and December 31, 2002.............................
       Capital surplus..............................................                4,329                   4,311
       Unearned Compensation                                                          (34)                      -
       Retained Earnings............................................                1,426                     889
       Accumulated other comprehensive income.......................                  473                     247
                                                                        -----------------       -----------------
             Total Shareholders' Equity.............................               10,523                   9,758
                                                                        -----------------       -----------------
              Total Liabilities and Shareholders' Equity............          $   130,522               $ 115,335
                                                                        =================       =================`

See accompanying notes to consolidated financial statements.

3

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CLARKSTON FINANCIAL CORPORATIONCONSOLIDATED STATEMENT OF INCOME
Three and Six Month Periods Ended June 30, 2003 and June 30, 2002 (dollars in thousands, except per share data)
(unaudited)

`Three Months     Three Months       Six Months        Six Months
                                                             Ended             Ended            Ended             Ended
                                                         June 30, 2003     June 30, 2002    June 30, 2003     June 30, 2002
                                                         -------------     -------------    -------------     -------------
                                                          (unaudited)       (unaudited)      (unaudited)       (unaudited)

Interest Income
     Loans, including fees ...........................        $1,265             $ 745          $ 2,395           $1,437
     Securities.......................................           354               739              766            1,402
     Federal Funds sold...............................            25                17               39               35
                                                          ----------         ---------       ----------        ---------
            Total interest income.....................         1,644             1,501            3,200            2,874

Interest Expense
       Deposits.......................................           633               667            1,306            1,287
                                                          ----------         ---------       ----------        ---------
Net Interest Income...................................         1,011               834            1,894            1,587

Provision for loan losses.............................           183                30              426               45

Net interest income
After provision for loan losses.......................           828               804            1,468            1,542

Noninterest income
     Gains on sale of securities......................           219                21              429               41
     Gain on sale of loans............................            61                 -               68                -
     Gain(Losses) Other...............................             -                 -              (7)                -
     Other income.....................................           124                95              231              180
                                                          ----------         ---------       ----------        ---------
            Total noninterest income..................           404               116              721              221


Noninterest expense
     Salaries and benefits.............................          401               347              754              690
     Occupancy expense ................................           44                63               97              126
     Office expense....................................           43                42               91               88
     Computer and data processing expenses.............           77                60              145              120
     Advertising and public relations..................           52                27               82               46
     Professional fees.................................           49                30               91               72
     Amortization of deposit premium
         and conversion cost...........................            5                 8               10               16
     Other expense.....................................          108                86              183              151
                                                          ----------         ---------       ----------        ---------
            Total noninterest expense..................          779               663            1,453            1,309
                                                          ----------         ---------       ----------        ---------

Profit before federal income tax.......................          453               257              736              454

Federal income tax.....................................          130                82              199              154
                                                          ----------         ---------       ----------        ---------

Net profit ............................................        $ 323           $   175          $   537           $  300
                                                          ==========         =========       ==========        =========

Basic and diluted profit per share.....................        $ .31           $   .17          $   .52           $  .29
                                                          ==========         =========       ==========        =========`

See accompanying notes to consolidated financial statements.

4

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CLARKSTON FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEThree and Six Month Periods Ended June 30, 2003 and June 30, 2002
(dollars in thousands)(Unaudited)

`Three Months     Three Months      Six Months     Six Months
                                                            Ended             Ended           Ended           Ended
                                                           June 30,         June 30,         June 30,       June 30,
                                                             2003             2002             2003           2002
                                                             ----             ----             ----           ----

Net profit as Reported............................         $   323          $   175         $   537         $   300

Other Comprehensive Income (loss), Net of Tax:

      Change in unrealized gain / loss on securities
          available for sale......................             242              473             226            (25)
                                                        ----------      -----------     -----------     -----------
Comprehensive Profit..............................         $   565          $   648         $   763         $   275
                                                        ==========      ===========     ===========     ===========`

5

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CLARKSTON FINANCIAL CORPORATIONCONSOLIDATED STATEMENT
OF CHANGES IN SHAREHOLDERS'EQUITYSix Month Period ended June 30, 2003(dollars in thousands)(Unaudited)

`Accumulated        Total
                                                                                                    Other           Share-
                                             Common      Capital    Unearned     Retained      Comprehensive       holders'
                                              Stock      Surplus      Comp.      Earnings          Income           Equity
                                            --------     --------   --------     --------         ---------        --------
Balance December 31, 2002................     $4,311       $4,311         -        $   889            $ 247         $ 9,758
Issuance of restricted stock.............         18           18       (36)
Recognition of compensation for
   restricted stock award................                                 2                                               2

Net income for six months
   ended June 30, 2003 (unaudited).......                                              537                              537

Increase in fair market value of
   securities available for sale.........                                                               226             226
                                            --------     --------   --------      --------         --------        --------
Balance June 30, 2003....................     $4,329       $4,329      ($34)       $ 1,426            $ 473        $ 10,523
                                            ========     ========   ========      ========         ========        ========`

6

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CLARKSTON FINANCIAL
CORPORATIONCONSOLIDATED STATEMENT OF CASH FLOWSSix Month Periods ended
June 30, 2003 and June 30, 2002(dollars in thousands)(unaudited)

`Six Months       Six Months
                                                                                       Ended            Ended
                                                                                      June 30,         June 30,
                                                                                        2003             2002
                                                                                     ---------        ---------
Net Cash Provided by Operating Activities:
       Net cash provided by operating activities.....................                   $ 682           $  295

Cash Flows from Investing Activities:
       Net increase in loans.........................................                 (21,613)          (5,716)
       Purchase of held-to-maturity securities.......................                       -          (10,139)
       Purchase of available-for-sale securities.....................                 (27,337)         (18,964)
       Proceeds from sales of available-for-sale securities..........                  39,498           11,969
       Property and equipment expenditures...........................                     (60)            (664)
                                                                                    ----------       ----------
       Net cash used in investing activities.........................                  (9,512)         (23,514)

Cash Flows from Financing Activities:
       Increase in deposits..........................................                  14,485           21,922
                                                                                    ----------       ----------
Net increase (decrease) in cash and cash equivalents.................                   5,655           (1,297)
Cash and cash equivalents at beginning of year.......................                   4,487            5,831
                                                                                    ----------       ----------
Cash and cash equivalents at June 30, 2003 and 2002..................                $ 10,142          $ 4,534
                                                                                    ==========       ==========`

See accompanying notes to consolidated financial statements.

7

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CLARKSTON FINANCIAL
CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2003 (unaudited) and December 31, 2002

NOTE 1  SUMMARY OF CRITICAL ACCOUNTING POLICIES

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,
2003, are not necessarily indicative of the results that may be expected for the year
ending December 31, 2003. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Companys Proxy Statement dated
April 4, 2003, containing audited financial statements as of December 31, 2002, 2001 and
2000.

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 inter-company accounts and
transactions have been eliminated in consolidation.

Use of Estimates To prepare
financial statements in conformity with accounting principles generally accepted in the
United States of America, management makes estimates and assumptions based on available
information. These estimates and assumptions affect the amounts reported in the financial
statements and the disclosures provided, and future results could differ. The
collectibility of loans, fair values of financial instruments, and status of contingencies
are particularly subject to change.

Income Taxes  Deferred income
taxes assets and liabilities are determined using the liability (or balance sheet) method.
Under this method, the net deferred tax asset or liability is determined based on the tax
effects of the various temporary differences between the book and tax bases of the various
balance sheet assets and liabilities and gives current recognition to changes in tax rates
and laws.

Allowance for Loan Losses  The
allowance for loan losses is established as losses are estimated to have occurred through
a provision for loan losses charged to earnings. Loan losses are charged against the
allowance when management believes the uncollectibility of a loan balance is confirmed.
Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is
evaluated on a regular basis by management and is based on managements periodic
review of the collectibility of the loans in light of historical experience, the nature
and volume of the loan portfolio, adverse situations that may affect the borrowers
ability to repay, estimated value of any underlying collateral and prevailing economic
conditions. This evaluation is inherently subjective as it requires estimates that are
susceptible to significant revision as more information becomes available.

8

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A loan is considered impaired when,
based on current information and events, it is probable that the Corporation will be
unable to collect the scheduled payments of principal or interest when due according to
the contractual terms of the loan agreement. Factors considered by management in
determining impairment include payment status, collateral value and the profitability of
collecting scheduled principal and interest payments when due. Loans that experience
insignificant payment delays and payment shortfalls generally are not classified as
impaired.

Management determines the
significance of payment delays and payment shortfalls on a case-by-case basis, taking into
consideration all of the circumstances surrounding the loan and the borrower, including
length of the delay, the reasons of the delay, the borrowers prior payment record,
and the amount of the shortfall in relation to the principal and interest owed. Impairment
is measured on a loan-by-loan basis for commercial and construction loans by either the
present value of expected future cash flows discounted at the loans effective
interest rate, the loans obtainable market price, or the fair value of the
collateral if the loan is collateral dependent.

Large groups of homogeneous loans are
collectively evaluated for impairment. Accordingly, the Corporation does not separately
identify individual consumer and residential loans for impairment disclosures.

Stock Compensation Plans  The
Corporation has chosen to measure compensation cost for director and employee stock
compensation plans using the intrinsic value-based method of accounting, whereby
compensation cost is the excess, if any, of the quoted market price of the stock at grant
date (or other measurement date) over the amount an option holder must pay to acquire the
stock. Stock options issued under the Corporations stock option plan have no
intrinsic value at the grant date, and no compensation cost is recognized for them. The
fair value-based method of accounting for stock compensation plans measures compensation
cost at the grant date based on the value of the award and is recognized over the service
period, which is usually the vesting period. The Corporation has provided pro forma
disclosures of net income and earnings per share and other disclosures as if the fair
value based method of accounting has been applied. The pro forma disclosures include the
effects of all awards granted since the Corporations inception.

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  SECURITIES

At June 30, 2003, investment
securities having a carrying value of $8.1 million were pledged to local municipalities
and county governments. Securities are pledged as required by law to be used as collateral
for public liabilities.

The Bank does not have any securities
in its portfolio that are classified as held to maturity. All securities are classified as
available for sale and the amortized cost and fair values of those securities are as
follows (dollars in thousands):

9

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CLARKSTON FINANCIAL
CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2003 (unaudited) and December 31, 2003

Available for Sale

`Gross              Gross            Estimated
                                                    Amortized        Unrealized         Unrealized          Market
                                                       Cost            Gains              Losses             Value
                                                     --------         -------            --------          ---------
  June 30, 2003 (Unaudited)
  -------------------------
         Taxable variable rate demand
             Municipal revenue bonds,
             Short term corporate
             Commercial paper, and bonds
             of government agencies...........       $42,520            $ 965              $ 249            $43,236
                                                     =======            =====              =====            =======`

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. Listed below are the contractual maturities of debt securities at June 30, 2003:

`Available-for-Sale Securities
                                                                          ---------------------------------
                                                                          Amortized               Estimated
                                                                            Cost                 Market Value
                                                                          --------               ------------
                                                                                (dollars in thousands)

      Due from 2003 to 2004....................................               $     0               $     0
      Due from 2004 to 2006....................................                     0                     0
      Due from 2006 to 2008....................................                 1,261                 1,287
      Due from 2009 to 2032....................................                41,259                41,949
                                                                               ------                ------
                                                                              $42,520               $43,236
                                                                              =======               =======`

NOTE 4 - LOANS

Loans are as follows (dollars in thousands):

`June 30,                December 31,
                                                                                 2003                      2002
                                                                             -----------               -----------
                                                                             (Unaudited)

        Commercial................................................           $    64,484                $   46,460
        Mortgage..................................................                 7,217                     4,668
        Consumer..................................................                 4,634                     3,594
                                                                           -------------             -------------
        Gross Loans                                                               76,335                    54,722
        Allowance for loan losses.................................                   996                       696
                                                                           -------------             -------------
        Net Loans                                                               $ 75,339                  $ 54,026
                                                                           =============             =============`

10

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CLARKSTON FINANCIAL
CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2003 (unaudited) and December 31, 2003

Activity in the allowance for loan losses is as follows (dollars in thousands):

`Six months              For the
                                                                                 Ended               Year Ended
                                                                             June 30, 2003          December 31,
                                                                              (Unaudited)               2002
                                                                              -----------           -----------

Balance at beginning of period............................                         $  696                $  419
Provision charged to operating expense....................                            426                   243
Loan losses...............................................                           (141)                  (13)
Loan recoveries...........................................                             15                    47
                                                                                   ------                ------
Balance at end of period..................................                         $  996                $  696
                                                                                   ======                ======
Allowance for loan losses as a percentage of
       loans at end of period.............................                          1.30%                 1.27%
                                                                                   ======                ======`

The table below outlines the allowance for loan loss allocations (dollars in thousands):

`June 30, 2003                       December 31, 2002
                                              ------------------------------     ------------------------------------
                                                                % of each                              % of each
                                                                category                               category
                                                Allowance       to total            Allowance          to total
                                                  Amount          loans               Amount             loans
                                                  ------          -----               ------             -----
Commercial....................                     $794           1.04%                $487               .89%
Real estate mortgages.........                       36            .05                  110               .20
Consumer......................                       51            .06                   99               .18
Unallocated...................                      115            .15                    0                 0
                                                  -----           -----               -----              -----
     Total....................                     $996           1.30%                $696              1.27%
                                                   ====           =====                ====              =====`

The above  allocations are not intended to imply  limitations on the usage of the allowance.  The entire allowance is available for any
future loans without regards to loan type.NOTE 5 - PREMISES AND EQUIPMENT-NET
Premises and equipment are as follows (dollars in thousands):

`(unaudited)
                                                                     June 30, 2003                December 31, 2002
                                                                     -------------                ----------------- 
Building and improvements...................................           $   1,091                     $   1,089
Furniture and equipment                                                      670                           681
                                                                       ---------                     ---------
    Total Bank premises and equipment.......................               1,761                         1,770

Less accumulated depreciation...............................                 421                           370
                                                                       ---------                     ---------
    Net carrying amount.....................................           $   1,340                     $   1,400
                                                                       =========                     =========`

11

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CLARKSTON FINANCIAL
CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2003 (unaudited) and December 31, 2003

NOTE 6  DEPOSITS

Deposits are summarized as follows (dollars in thousands):

`June 30,                 December 31,
                                                                               2003                       2002
                                                                           ----------                 ------------
Non-Interest Bearing Demand Deposit Accounts.............                 $    18,706               $    14,797
Interest-Bearing Demand deposit accounts.................                       7,180                     6,309
Savings accounts.........................................                       6,168                     6,335
Money market accounts....................................                      40,353                    32,589
Certificates of Deposit..................................                      45,077                    44,893
                                                                        -------------             -------------
                                                                          $   117,484               $   104,923
                                                                        =============             =============`

NOTE 7  STOCK BASED COMPENSATION

The Corporation has two stock-based
compensation plans. Under the employees Stock Compensation Plan (Employee
Plan), the Corporation may grant options or issue restricted stock to key employees
for up to 26,125 shares of common stock. Under the 1998 Founding Directors Stock Option
Plan (Director Plan), the Corporation may grant options for up to 78,375
shares of common stock. Under both plans, there is a minimum vesting period of between one
to three years before the options may be exercised, and all options expire 10 years after
the date of their grant. Certain options (contingent options) under both plans vest on an
accelerated basis upon the achievement of various future financial and operational goals.
All such options vest 9.5 years after the date of grant regardless of achievement of
future goals. Under both plans, the exercise price of each option equals the market price
of the Corporations common stock on the date of grant.

The following table summarizes stock
option transactions for both plans and the related average exercise prices for the six
month periods ended June 30, 2003 and 2002:

`2003                     2002
                                                    --------------            -------------
                                                              Weighted                  Weighted
                                                              Average                   Average
                                                  Number      Exercise      Number      Exercise
                                                of Shares      Price      of Shares      Price
                                                ---------      -----      ---------      -----
Options Outstanding - beginning of
period                                            57,643       $9.01        66,350       $8.96
Options granted                                       --          --            --          --
Options exercised                                     --          --            --          --
Options expired                                       --          --            --          --
                                                  ------
Options Outstanding - End of period               57,643       $9.01        66,350       $8.96
                                                  ======`

12

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CLARKSTON FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2003 (unaudited) and December 31, 2003

The following table shows summary information about fixed stock options outstanding at June 30, 2003:

`Stock Options Outstanding                      Stock Options Exercisable
                           --------------------------------------------------------   --------------------------------
                                                           Weighted
                                                           Average       Weighted
                              Range of                    Remaining       Average         Number of       Weighted
                              Exercise     Number of     Contractual     Exercise          Shares         Average
                               Prices        Shares          Life          Price         Exercisable   Exercise Price
                               ------        ------          ----          -----         -----------   --------------
Contingent                  $     9.09       28,070       5.9 years    $     9.09          11,228      $     9.09
Noncontingent                     9.09       28,473       5.9 years          9.09          22,775            9.09
Noncontingent                     5.00        1,100       2.3 years          5.00           1,100            5.00`

The Corporation has adopted the
disclosure-only provisions of SFAS No. 123, Accounting for Stock-Based Compensation, but
applies the intrinsic value method to account for its plan. The Corporation has estimated
fair market value of the options granted in 2000 at $2.34 per share, using a minimum
value concept. The value was calculated using an assumed interest rate of 6.5
percent and estimated life of five years.

If the Corporation had elected to
recognize compensation costs for the plans based on the fair value of awards at the grant
date, net income per share on a pro forma basis for three and six month periods ended June
30, 2003 and 2002 would have been as follows (000s omitted, except per share data):

`Three Month Period Ended June 30                     Six Month Period Ended June 30
                        ------------------------------------------------  -----------------------------------------------------
                                 2003                       2002                     2003                      2002
                        -----------------------  -----------------------  ------------------------  ---------------------------
                            As          Pro            As          Pro         As           Pro           As           Pro
                         Reported      Forma        Reported      Forma     Reported       Forma       Reported       Forma
                         --------      -----        --------      -----     --------       -----       --------       -----
Net income                   $323       $319            $175       $171         $537        $529           $300        $292
Net income per
common share:
     Basic                   0.31       0.31            0.17       0.17         0.52        0.51           0.29        0.29
     Fully diluted           0.31       0.31            0.17       0.17         0.52        0.51           0.29        0.29`

Shares of restricted stock issued to employees
in 2003 were valued at the market price of the stock at the award date. Compensation expense
is being recognized over the three year vesting period for the restricted stock.

13

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NOTE 8  MINIMUM REGULATORY CAPITAL REQUIREMENTS

The Corporation (on a consolidated
basis) and the Bank are subject to various regulatory capital requirements administered by
the federal banking agencies. Failure to meet minimum capital requirements can initiate
certain mandatory and possibly additional discretionary actions by regulators that, if
undertaken, could have a direct material effect on the Corporations and the
Banks financial statements. Under capital adequacy guidelines and the regulatory
framework for prompt corrective action, the Corporation and the Bank must meet specific
capital guidelines that involve quantitative measures of the assets, liabilities, and
certain off-balance-sheet items as calculated under regulatory accounting practices. The
capital amounts and classification are also subject to qualitative judgments by regulators
about components, risk weightings, and other factors. Prompt corrective action provisions
are not applicable to bank holding companies.

14

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CLARKSTON FINANCIAL CORPORATION  NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS June 30, 2003 (unaudited) and December 31, 2002

Quantitative measures established by
regulation to ensure capital adequacy require the Corporation and the Bank to maintain
minimum amounts and ratios (set forth in the following table) of total and Tier I capital
(as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital
(as defined) to average assets (as defined). Management believes, as of June 30, 2003 and
December 31, 2002, that the Corporation and the Bank met all capital adequacy requirements
to which they are subject.

As of June 30, 2003, the most recent
notification from the FDIC categorized the Bank as well-capitalized under the regulatory
framework for prompt corrective action. To be categorized as well-capitalized, an
institution must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage
ratios as set forth in the following table. There are no conditions or events since that
notification that management believes have changed the Banks capital category. The
Corporations and the Banks actual capital amounts and ratios as of June 30,
2003 and December 31, 2002 are also presented in the table below.

`For Capital                      To be
                                            Actual                Adequacy Purposes             Well-Capitalized
                                    ------------------------    -----------------------     --------------------------
                                                   Ratio                      Ratio                         Ratio
                                      Amount     (Percent)        Amount    (Percent)         Amount      (Percent)

As of June 30, 2003:
   Total risk-based capital            $11,046        12.44         $7,106        8.00           $8,883         10.00
      (to risk-weighted assets)
   Tier 1 capital                       10,050        11.31          3,553        4.00            5,330          6.00
      (to risk-weighted assets)
   Tier 1 capital                       10,050         7.93          5,067        4.00            6,334          5.00
      (to average assets)

As of December 31, 2002:
   Total risk-based capital            $10,116        14.76         $5,482        8.00           $6,853         10.00
      (to risk-weighted assets)
   Tier 1 capital                        9,420        13.75          2,741        4.00            4,112          6.00
      (to risk-weighted assets)
   Tier 1 capital                        9,420         8.32          4,529        4.00            5,661          5.00
      (to average assets)`

15

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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.

As
a Company we continue our maturation process and have become more profitable while
maintaining sound asset quality and expanding our breadth of products. The Bank became
profitable in its tenth month of operation and has continued that momentum throughout the
first four years of operations. Despite operating in a very competitive market place and
challenging economic times, the Bank has continued to grow the size of its assets and
increase its profitability.

Financial Condition

Total
assets of the Company increased by $15.2 million or 13.2% to $130.5 million at June 30,
2003, from $115.3 million at December 31, 2002. The continued growth is attributable to
ongoing marketing efforts for deposits and an increase in lending relationships. During
2003, which is the Banks fifth year of operations, it is anticipated that the
Banks assets will continue to grow.

Cash
and cash equivalents, which include federal funds sold and short-term investments,
increased $5.6 million or 124.4% to $10.1 million at June 30, 2003 from $4.5 million at
December 31, 2002. Management has increased the level of cash on hand as increased loan
demand and growth in both retail and commercial deposits require more accessibility to
funds.

Securities
decreased $11.5 million or 21.0% to $43.2 million at June 30, 2003 from $54.7 million at
December 31, 2002. The decrease is directly attributable to selling securities in an
effort to keep pace with the Banks loan demand. This is consistent with
managements intent to reduce the level of lower interest bearing securities and
replace them with higher interest bearing loans. The bank continues to have excellent
liquidity and will monitor its level of securities to ensure proper liquidity is
maintained.

Total
loans increased by $21.6 million or 39.5% to $76.3 million at June 30, 2003, from $54.7
million at December 31, 2002. This pattern of growth is consistent with the Banks
business plan and is expected to continue throughout 2003. Most notably were significant
increases in commercial and commercial real estate loans which increased by 39.0% from
$46.4 at December 31, 2002 to $64.5 at June 30, 2003. In addition, residential real estate
loans increased by 53.2% from $4.7 million to $7.2 million for the same period. Management
has placed an emphasis on enhancing its mortgage loan production to meet demand for loans
in the banks market area.

The
allowance for loan losses as of June 30, 2003 was $996,000, representing approximately
1.30% of total loans outstanding, compared to $696,000 as of December 31, 2002. The
increase in the allowance is directly attributable to the growth in the loan portfolio.

16

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The
loan loss allowance represents managements assessment of both current and future
losses inherent within the loan portfolio. Consideration is also given to off-balance
sheet items that may involve credit risk, such as commitments to extend credit. This
analysis is conducted on a quarterly basis utilizing a methodology that has been employed
since the Banks inception. The methodology employed utilizes several factors to
determine the appropriateness of the allowance. Specifically, historical loss experience,
present and prospective financial condition of borrowers, collateral adequacy, credit risk
rating system and current economic conditions are incorporated in this analysis.

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.

Although
the loan portfolio is unseasoned and actual loss experience is not readily determinable
management believes the allowance for loan losses is adequate as of June 30, 2003.
Management considers it adequate based on the use of its credit risk rating system which
identifies problem credits and ranks loans by specific categories. Moreover, management
utilizes peer comparisons and industry data for similar type loans to further assess the
proper level of the loan loss allowance. Going forward, management will closely monitor
the performance of the loan portfolio as it becomes more seasoned.

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.

As
of June 30, 2003, the Company had an accumulated profit of $1.4 million compared to
$889,000 at December 31, 2002. The accumulated profit continues to improve as the Bank has
increased its net interest and non-interest income while continuing to maintain low
operating expenses.

Results of Operations

The
Companys net profit was $323,000 for the second quarter of 2003 compared to net
profit of $175,000 for the second quarter of 2002. 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, 2003 included gains on the sale of securities of $429,000 and a federal
income tax provision of $199,000. Management continues to follow their business plan for
2003 by selling securities to fund loans yielding higher returns than the liquidated
securities. Conditions in the bond market have provided the opportunity to sell securities
at a net gain while also achieving the objective of reinvesting into higher interest
earning loans.

Interest
income for the second quarter of 2003 was $1.6 million, an increase of 6.67% from interest
income of $1.5 million for the second quarter of 2002. This increase resulted primarily
from continued loan growth throughout the quarter. Interest expense was $633,000 for the
second quarter of 2003, a 5.10% decrease from interest expense of $667,000 for the second
quarter of 2002.

The
Company had an allowance for loan losses of approximately 1.30% of total loans at June 30,
2003. The provision expense for loan loss for the second quarter of 2003, was $183,000.
Management believes the current rate of providing for the loan loss reserve is adequate.

17

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Non-interest
income was $404,000 for the second quarter of 2003, a $288,000 (or 248%) increase over the
second quarter of 2002 when non-interest income was $116,000. The increase is the result
of higher loan fees due to sales of residential mortgage loans and gains realized on the
sale of securities. Given the current economic uncertainties and volatility of the bond
market the sale of securities at a gain may not continue into future periods.

Non-interest
expense was $779,000 for the second quarter of 2003, a $116,000 (or 17.5%) increase over
the second quarter of 2002 when non-interest expense was $663,000. The increase is
primarily attributable to higher salary and benefit costs due to the increase in full time
equivalents and normal raises given to employees. In addition, management has increased
its marketing budget to further enhance efforts to market the Banks products and
services during 2003.

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. Management believes that the Companys current
capital and liquidity are sufficient to support its expected level of deposit and loan
growth, although additional capital may be needed if in the future the Company experiences
substantial growth or purchases assets or deposits.

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

18

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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.

19

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Item 3     CONTROLS AND PROCEDURES

|(a) | Evaluation of Disclosure Controls and Procedures. The Companys Chief
               Executive Officer and Chief Financial Officer, after evaluating the
               effectiveness of the companys disclosure controls and procedures (as
               defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the
               period covered by this Form 10-QSB Quarterly Report, have concluded that the
               Companys disclosure controls and procedures were adequate and effective to
               ensure that material information relating to the Company would be made known to
               them by others within the Company, particularly during the period in which this
               Form 10-QSB Quarterly Report was being prepared.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(b) | Changes in Internal Controls. During the period covered by this report, there
               have been no changes in the Companys internal control over financial
               reporting that have materially affected or are reasonably likely to materially
               affect the Companys internal control over financial reporting.                                                                                                                                                                                                                                                                                                                                                                                                                                              

|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 6, 2003.                                                                                                                                                                                                                                                              
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | The following directors were elected at the annual meeting for a term expiring
               in 2006: Charles L. Fortinberry, Bruce H. McIntyre and Robert A. Olsen. Other
               directors whose terms continued after the meeting are as follows: Edwin L.
               Adler, Louis D. Beer, William J. Clark, and John H. Welker.
| | (c) | At the annual meeting directors were elected for terms expiring in 2006:                                                                                                                                                                                                                                                                        
| |     | Director Nominee
Charles L. Fortinberry
Bruce H. McIntyre
Robert A. Olsen                                                                                                                                                                                                                                                                       

20

---



| | (d) | The shareholders approved the amendment, restatement and renaming of the
          Corporations 1998 Founding Directors Stock Option Plan to be named
          the Clarkston Financial Corporation Amended and Restated Directors
          Compensation Plan, to allow for the granting of restricted stock under the plan:
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                 

|Item 5. | Other Information.               
|------- | ---------------------------------
|None.  
|Item 6. | Exhibits and Reports on Form 8-K.

| | (a) | Exhibits              
| | --- | ----------------------
| |     |                       
| |     |                       
| |     |                       
| |     |                       
| | (b) | Reports on 8-K - None.

21

---



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, 2003, 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, 2003

22

---



EXHIBIT LIST

|10.1 | Clarkston Financial Corporation Amended and Restated Directors Compensation Plan,
incorporated by reference to Appendix B to the Companys Schedule 14A Proxy Statement
for the May 6, 2003 annual meeting.       
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.1 | Certificate of the Chief Executive Officer of Clarkston Financial Corporation pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.                                                                           
|31.2 | Certificate of the Chief Financial Officer of Clarkston Financial Corporation pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.                                                                           
|32.1 | Certificate of the Chief Executive Officer and 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.

23

---



Exhibit 31.1

CERTIFICATIONS

I, Edwin L. Adler, certify that:

|1. | I have reviewed this quarterly report on Form 10-QSB of Clarkston Financial
          Corporation;
|-- | --------------------------------------------------------------------------------------------------

|2. | Based on my knowledge, this quarterly report does not contain any untrue
          statement of a material fact or omit to state a material fact necessary to make
          the statements made, in light of the circumstances under which such statements
          were made, not misleading with respect to the period covered by this quarterly
          report;
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Based on my knowledge, the financial statements, and other financial information
          included in this quarterly report, fairly present in all material respects the
          financial condition, results of operations and cash flows of the registrant as
          of, and for, the periods presented in this quarterly report;
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The registrants other certifying officers and I are responsible for
          establishing and maintaining disclosure controls and procedures (as defined in
          Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | designed such disclosure controls and procedures, or caused such disclosure
               controls and procedures to be designed under our supervision, to ensure that
               material information relating to the registrant, including its consolidated
               subsidiaries, is made known to us by others within those entities, particularly
               during the period in which this quarterly report is being prepared;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | evaluated the effectiveness of the registrants disclosure controls and
               procedures and presented in this report our conclusions about the effectiveness
               of the disclosure controls and procedures, as of the end of the period covered
               by this report based on such evaluation; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | disclosed in this report any change in the registrants internal control
               over financial reporting that occurred during the registrants most recent
               fiscal quarter that has materially affected, or is reasonably likely to
               materially affect, the registrants internal control over financial
               reporting; and ;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The registrants other certifying officers and I have disclosed, based on
          our most recent evaluation of internal controls over financial reporting, to the
          registrants auditors and the audit committee of registrants board of
          directors (or persons performing the equivalent functions):
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | all significant deficiencies in the design or operation of internal control over
               financial reporting which are reasonably likely to adversely affect the
               registrants ability to record, process, summarize and report financial
               information; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | any fraud, whether or not material, that involves management or other employees
               who have a significant role in the registrants internal control over
               financial reporting.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date: August 14, 2003

| | /s/ Edwin L. Adler

Edwin L. Adler
Chief Executive Officer
| | ----------------------------------------------------------



---



Exhibit 31.2

CERTIFICATIONS

I, J. Grant Smith, certify that:

|1. | I have reviewed this quarterly report on Form 10-QSB of Clarkston Financial
          Corporation;
|-- | --------------------------------------------------------------------------------------------------

|2. | Based on my knowledge, this quarterly report does not contain any untrue
          statement of a material fact or omit to state a material fact necessary to make
          the statements made, in light of the circumstances under which such statements
          were made, not misleading with respect to the period covered by this quarterly
          report;
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Based on my knowledge, the financial statements, and other financial information
          included in this quarterly report, fairly present in all material respects the
          financial condition, results of operations and cash flows of the registrant as
          of, and for, the periods presented in this quarterly report;
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The registrants other certifying officers and I are responsible for
          establishing and maintaining disclosure controls and procedures (as defined in
          Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | designed such disclosure controls and procedures, or caused such disclosure
               controls and procedures to be designed under our supervision, to ensure that
               material information relating to the registrant, including its consolidated
               subsidiaries, is made known to us by others within those entities, particularly
               during the period in which this quarterly report is being prepared;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | evaluated the effectiveness of the registrants disclosure controls and
               procedures and presented in this report our conclusions about the effectiveness
               of the disclosure controls and procedures, as of the end of the period covered
               by this report based on such evaluation; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | disclosed in this report any change in the registrants internal control
               over financial reporting that occurred during the registrants most recent
               fiscal quarter that has materially affected, or is reasonably likely to
               materially affect, the registrants internal control over financial
               reporting; and ;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The registrants other certifying officers and I have disclosed, based on
          our most recent evaluation of internal controls over financial reporting, to the
          registrants auditors and the audit committee of registrants board of
          directors (or persons performing the equivalent functions):
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | all significant deficiencies in the design or operation of internal control over
               financial reporting which are reasonably likely to adversely affect the
               registrants ability to record, process, summarize and report financial
               information; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | any fraud, whether or not material, that involves management or other employees
               who have a significant role in the registrants internal control over
               financial reporting.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date: August 14, 2003

| | /s/ J. Grant Smith

J. Grant Smith
Chief Financial Officer
| | ----------------------------------------------------------



---



EXHIBIT 32.1

Each of, Edwin L. Adler, Chief
Executive Officer, and 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, 2003
          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, 2003 fairly presents, in all material respects,
          the financial condition and results of operations of Clarkston Financial
          Corporation.

Date: August 14, 2003

| | /s/ Edwin L. Adler

Edwin L. Adler
Chief Executive Officer
| | ----------------------------------------------------------

| | /s/ J. Grant Smith

J. Grant Smith
Chief Financial Officer
| | ----------------------------------------------------------