# SECURITIES AND
EXCHANGE COMMISSION Washington, D.C. 20549

_________________

# FORM 10-QSB

[X] QUARTERLY REPORT
UNDER SECTION 13 OR 15(d)OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period
ended June 30, 2005

OR [  ] TRANSITION REPORT
UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition
period from _______ to ________

Commission file number:
333-63685

CLARKSTON FINANCIAL
CORPORATION(Exact name of small business issuer as specified in its charter)

|MICHIGAN            
(State of other jurisdiction of 
incorporation or organization) | 38-3412321 
(I.R.S. Employer
Identification No.)
|------------------------------------------------------------------------------------ | ------------------------------------------------

15 South Main Street,
Clarkston, Michigan 48346(Address of principal executive offices) (Zip Code)

Registrants
telephone number, including area code: (248) 625-8585

_________________

Check whether the issuer: (1) has
filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the past 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes  __X__ No _____

The number of shares outstanding of
each of the issuers classes of common stock, as of the latest practicable date:
1,214,435 shares of the Corporations Common Stock (no par
value) were outstanding as of August 11, 2005.

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

1

---



# INDEX

|                                                      | Page Number(s)
|----------------------------------------------------- | --------------
|Part I          Financial Information (unaudited):    |               
|                                                     
|Item 1.                                               |               
|Condensed Consolidated Financial Statements           |               
|                                                     
|Notes to Condensed Consolidated Financial Statements  |               
|                                                     
|Item 2.                                               |               
|Management's Discussion and Analysis of               |               
|Financial Condition and Results of Operations         |               
|                                                     
|Item 3.                                               |               
|Controls & Procedures                                 |               
|                                                     
|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 Securities Holders |               
|                                                     
|Item 5.                                               |               
|Other Information                                     |               
|                                                     
|Item 6.                                               |               
|Exhibits and Reports on Form 8-K                      |               
|                                                     
|Signatures                                            |               

2

---



# Part I Financial
Information (unaudited)

CLARKSTON FINANCIAL
CORPORATION CONSOLIDATED BALANCE
SHEET June 30, 2005
(unaudited) and December 31, 2004 (dollars in thousands)

|                                                     | June 30,2005 | December 31,2004
|---------------------------------------------------- | ------------ | ----------------
|                                                     |              |                 
|
|ASSETS                                               |              |                 
|Cash and cash equivalents                            |             
|Total cash and due from banks                        |              | $     4,090     
|Federal funds sold                                   |              | 11,131          
|                                                     |              |                 
|Total cash and cash equivalents                      |              | 15,221          
|Securities available for sale, at fair value         |              | 37,344          
|Loans held for sale                                  |              | 945             
|Loans                                                |             
|Total loans                                          |              | 129,297         
|Less: Allowance for loan losses                      |              | (1,506          
|                                                     |              |                 
|Net loans                                            |              | 127,791         
|Banking premises and equipment                       |              | 2,819           
|Interest receivable                                  |              | 654             
|Deferred tax asset                                   |              | 414             
|Other assets                                         |              | 965             
|                                                     |              |                 
|Total assets                                         |              | $ 186,153       
|                                                     |              |                 
|LIABILITIES AND SHAREHOLDERS' EQUITY                 |             
|Deposits                                             |             
|Noninterest-bearing                                  |              | 26,207          
|Interest-bearing                                     |              | 129,774         
|                                                     |              |                 
|Total deposits                                       |              | 155,981         
|Advances from Federal Home Loan Bank of Indianapolis |              | 12,200          
|Junior subordinated debentures held by               |             
|unconsolidated subsidiary trust                      |              | 4,000           
|Interest payable and other liabilities               |              | 1,512           
|                                                     |              |                 
|Total liabilities                                    |              | 173,693         
|Shareholders' equity                                 |             
|Common stock, no par value: 10,000,000               |             
|Shares authorized; 1,048,659 and 1,045,909 shares    |             
|issued and outstanding as of June 30, 2005           |             
|and December 31, 2004                                |              | 4,472           
|Capital surplus                                      |              | 4,472           
|Restricted stock - unearned compensation             |              | (113            
|Retained earnings                                    |              | 3,929           
|Accumulated other comprehensive loss                 |              | (300            
|                                                     |              |                 
|Total shareholders' equity                           |              | 12,460          
|                                                     |              |                 
|Total liabilities and shareholders' equity           |              | $ 186,153       
|                                                     |              |                 

See accompanying notes
to consolidated financial statements

3

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CLARKSTON FINANCIAL
CORPORATION 
CONSOLIDATED
STATEMENT OF INCOME Three and Six Month Periods Ended June 30, 2005 and June 30, 2004 (dollars
in thousands, except per share data) (unaudited)

|                                         | Three Months  
     Ended      
 June 30, 2005 | Three Months 
    Ended     
June 30, 2004 | Six Months  
     Ended     
 June 30, 2005 | Six Months
      Ended
  June 30, 2004
|---------------------------------------- | ---------------------------------------------- | ------------------------------------------ | ------------------------------------------- | --------------------------------------
|                                         |                                                |                                            |                                             |                                       
|Interest Income                          |                                                |                                            |                                             |                                       
|Loans, including fees                    |                                                | $2,285                                     |                                             | $ 1,487                               
|Securities                               |                                               
|Taxable                                  |                                                | 303                                        |                                             | 235                                   
|Tax-exempt                               |                                                | 74                                         |                                             | 207                                   
|Federal funds sold                       |                                                | 37                                         |                                             | 9                                     
|                                         |                                                |                                            |                                             |                                       
|Total interest income                    |                                                | 2,699                                      |                                             | 1,938                                 
|Interest Expense                         |                                               
|Deposits                                 |                                                | 997                                        |                                             | 610                                   
|Borrowings                               |                                                | 173                                        |                                             | 69                                    
|Total Interest Expense                   |                                                | 1,170                                      |                                             | 679                                   
|Net Interest Income                      |                                                | 1,529                                      |                                             | 1,259                                 
|Provision for loan losses                |                                                | 260                                        |                                             | 105                                   
|                                         |                                                |                                            |                                             |                                       
|Net interest income                      |                                               
|After provision for loan losses          |                                                | 1,269                                      |                                             | 1,154                                 
|Noninterest income                       |                                               
|Gain on sale of securities               |                                                | --                                         |                                             | (20                                   
|Gain on sale of loans                    |                                                | 28                                         |                                             | 26                                    
|Service charges and other fees           |                                                | 221                                        |                                             | 144                                   
|Other income                             |                                                | 4                                          |                                             | --                                    
|                                         |                                                |                                            |                                             |                                       
|Total noninterest income                 |                                                | 253                                        |                                             | 150                                   
|Noninterest expense                      |                                               
|Salaries and benefits                    |                                                | 783                                        |                                             | 469                                   
|Occupancy expense                        |                                                | 201                                        |                                             | 117                                   
|Computer and data processing expenses    |                                                | 87                                         |                                             | 79                                    
|Advertising and public relations         |                                                | 57                                         |                                             | 40                                    
|Professional fees                        |                                                | 74                                         |                                             | 76                                    
|Supplies                                 |                                                | 17                                         |                                             | 18                                    
|State taxes                              |                                                | 27                                         |                                             | 8                                     
|Other expense                            |                                                | 150                                        |                                             | 109                                   
|                                         |                                                |                                            |                                             |                                       
|Total noninterest expense                |                                                | 1,396                                      |                                             | 916                                   
|                                         |                                                |                                            |                                             |                                       
|Income before federal income tax expense |                                                | 126                                        |                                             | 388                                   
|Federal income tax expense               |                                                | 10                                         |                                             | 56                                    
|                                         |                                                |                                            |                                             |                                       
|Net income                               |                                                | $   116                                    |                                             | $    332                              
|                                         |                                                |                                            |                                             |                                       
|Basic earnings per share                 |                                                | $   .11                                    |                                             | $    .32                              
|                                         |                                                |                                            |                                             |                                       
|Diluted earnings per share               |                                                | $   .11                                    |                                             | $    .31                              
|                                         |                                                |                                            |                                             |                                       

See accompanying notes
to consolidated financial statements.

4

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CLARKSTON FINANCIAL
CORPORATIONCONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITYSix Month Period ended
June 30, 2005 (dollars in thousands) (Unaudited)

|                                | Common  
 Stock | Capital   
Surplus | Unearned  
 Comp. | Retained 
 Earnings | Accumulated
    Other     
Comprehensive 
    Income | Total
 Stockholders'
     Equity
|------------------------------- | --------------- | ------------------ | ----------------- | ------------------- | ---------------------------------------------------- | --------------------------------
|                                |                 |                    |                   |                     |                                                      |                                 
|Balance December 31, 2004       |                 | $4,444             |                   | $4,444              |                                                      | $(80                            
|Issuance of restricted stock    |                 | 28                 |                   | 28                  |                                                      | (56                             
|Recognition of compensation for |                
|restricted stock award          |                 | --                 |                   | --                  |                                                      | 23                              
|Comprehensive income:           |                
|Net income for six months ended |                
|June 30, 2005                   |                 | --                 |                   | --                  |                                                      | --                              
|Change in unrealized loss on    |                
|securities available for sale   |                
|net of tax of ($30)             |                 | --                 |                   | --                  |                                                      | --                              
|Net comprehensive income        |                 |                    |                   |                     |                                                      |                                 
|                                |                 |                    |                   |                     |                                                      |                                 
|Balance June 30, 2005           |                 | $4,472             |                   | $4,472              |                                                      | $(113                           
|                                |                 |                    |                   |                     |                                                      |                                 

5

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CLARKSTON FINANCIAL
CORPORATION 
CONSOLIDATED
STATEMENT OF CASH FLOWS Three and Six Month Periods ended June 30, 2005 and June 30, 2004 (dollars in thousands)
(unaudited)

|                                                     | Three      
 Months     
 Ended      
  June 30,  
    2005 | Three
 Months     
 Ended      
  June 30,  
    2004 | Six Months
    Ended  
  June 30, 
    2005 | Six Months
  Ended
 June 30,
   2004
|---------------------------------------------------- | ----------------------------------------------------------- | ----------------------------------------------------- | ------------------------------------------- | ------------------------------------
|                                                     |                                                             |                                                       |                                             |                                     
|Net Cash Provided by Operating Activities:           |                                                             |                                                       |                                             |                                     
|Net cash provided by operating activities            |                                                             | $      246                                            |                                             | $ 9,682                             
|Cash Flows from Investing Activities:                |                                                            
|Net increase in loans                                |                                                             | (4,511                                                | )                                           | (6,918                              
|Purchase of available-for-sale securities            |                                                             | (995                                                  | )                                           | (979                                
|Proceeds from sales of available-for-sale securities |                                                             | 2,913                                                 |                                             | 8,224                               
|Property and equipment expenditures                  |                                                             | (208                                                  | )                                           | (94                                 
|                                                     |                                                             |                                                       |                                             |                                     
|Net cash provided by/(used in) investing activities  |                                                             | 2,804                                                 |                                             | 233                                 
|Cash Flows from Financing Activities:                |                                                            
|Increase/(decrease) in deposits                      |                                                             | 13,689                                                |                                             | (8,059                              
|Decrease in federal funds purchased                  |                                                             | (1,500                                                | )                                           | --                                  
|Proceeds from sale of stock                          |                                                             | --                                                    |                                             | --                                  
|                                                     |                                                             |                                                       |                                             |                                     
|Net Cash provided by/(used in) financing activities  |                                                             | 12,189                                                |                                             | (8,059                              
|Net increase in cash and cash equivalents            |                                                             | 9,631                                                 |                                             | 1,856                               
|Cash and cash equivalents at beginning of year       |                                                             | 5,590                                                 |                                             | 7,891                               
|                                                     |                                                             |                                                       |                                             |                                     

6

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|                                                    |  |          |  |        
|--------------------------------------------------- |  | -------- |  | -------
|Cash and cash equivalents at end of period          |  | $ 15,221 |  | $ 9,747
|                                                    |  |          |  |        
|Supplemental Cash Flow Information - Cash paid for: | 
|Interest                                            |  | 1,196    |  | 679    
|Taxes                                               |  | 200      |  | 48     

See accompanying notes
to consolidated financial statements.

7

---



# NOTE 1  BASIS OF
FINANCIAL STATEMENT PRESENTATION

The accompanying unaudited
consolidated interim financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America with the instructions to
Form 10-QSB. Accordingly, certain information and disclosures required by accounting
principles generally accepted in the United States of America for complete financial
statements are not included herein. The interim financial statements should be read in
conjunction with the financial statements of Clarkston Financial Corporation (the
Corporation) and the notes thereto included in the Corporations annual
report on Form 10-KSB for the year ended December 31, 2004.

All adjustments, consisting of normal
recurring adjustments, which in the opinion of management are necessary for a fair
presentation of financial position, results of operations, and cash flows, have been made.
The results of operations for the three and six month periods ended June 30, 2005 are not
necessarily indicative of the results that may be expected for the year ended December 31,
2005.

Certain amounts in prior
periods financial statements have been reclassified to conform to the current
periods presentation.

# NOTE 2  PRINCIPLES
OF CONSOLIDATION

The Corporation is a Michigan
Corporation and the holding company for Clarkston State Bank. The consolidated
financial statements include the accounts of the Corporation and its wholly owned
subsidiary Clarkston State Bank. All significant intercompany transactions are eliminated
in consolidation.

# NOTE 3  STOCK
BASED COMPENSATION

The Corporation applies the
provisions of APB Opinion No. 25, Accounting for Stock-based Compensation,
accounting for all employee stock option grants using the intrinsic value method.
Disclosure of proforma net income and earnings per share amounts as if the fair
value-based method has been applied in measuring compensation costs is provided below.

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 21,495 shares of common stock. Under the 1998 Founding Directors Stock Option
Plan (Director Plan), the Corporation may grant options for up to 72,693
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.

8

---



# NOTE 3  STOCK
BASED COMPENSATION (CONTINUED)

The Corporations as reported
and pro forma information for the three month period ended June 30 (000s omitted,
except per share data) is as follows:

|                                           | Three MonthsEnded June 30, | Six MonthsEnded June 30,
|------------------------------------------ | -------------------------- | ------------------------
|                                           |                            |                         
|
|                                           |                            |                         
|As reported net income available to common |                            |                         
|stockholders                               |                            | $      116              
|Less stock-based compensation expense      |                           
|determined under fair value method -       |                           
|net of tax                                 |                            | 4                       
|                                           |                            |                         
|Pro forma net income                       |                            | $      112              
|                                           |                            |                         
|As reported earnings per share             |                            | $    0.11               
|Pro forma earnings per share               |                            | $    0.11               
|As reported earnings per diluted share     |                            | $    0.11               
|Pro forma earnings per diluted share       |                            | $    0.10               

Compensation expense in the pro forma
disclosures is not indicative of future amounts, as options vest over several years and
additional grants may be made each year.

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

|                                        | 2005 | 2004  
|--------------------------------------- | ---- | ------
|                                        |      |       
|
|                                        |      |       
|Options Outstanding - Beginning of Year |      | 49,536
|Options granted - Employee Plan         |      | -     
|Options exercised                       |      | -     
|Options expired                         |      | -     
|                                        |      |       
|Options Outstanding - End of Period     |      | 49,536
|                                        |      |       

The following table shows summary
information about fixed stock options outstanding at June 30, 2005:

|               | Stock Options Outstanding | Stock Options Exercisable
|-------------- | ------------------------- | -------------------------
|               |                           |                          
|
|               |                           |                          
|Contingent     |                           | $9.09                    
|Non-contingent |                           | 9.09                     

9

---



# NOTE 3  STOCK
BASED COMPENSATION (CONTINUED)

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.

Shares of restricted stock issued to
employees 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.

# NOTE 4  EARNINGS
PER SHARE

Basic earnings per share represents
income available to common stockholders divided by the weighted-average number of common
shares outstanding during the period. Diluted earnings per share reflects additional
common shares that would have been outstanding if dilutive potential common shares had
been issued, as well as any adjustment to income that would result from the assumed
issuance. Potential common shares that may be issued by the Corporation relate solely to
outstanding stock options and are determined using the treasury stock method.

Earnings per share have been computed
based on the following: (in 000s omitted)

|                                                  | Three MonthsEnded June 30, | Six MonthsEnded June 30,
|------------------------------------------------- | -------------------------- | ------------------------
|                                                  |                            |                         
|
|                                                  |                            |                         
|Net income available to common stockholders       |                            | $   116                 
|Average number of common shares                   |                           
|outstanding                                       |                            | 1,049                   
|Effect of dilutive options                        |                            | 27                      
|                                                  |                            |                         
|Average number of common shares                   |                           
|outstanding used to calculate diluted             |                           
|earnings per common share                         |                            | 1,076                   
|                                                  |                            |                         
|Number of  antidilutive  stock  options  excluded |                           
|from diluted earnings per share computation       |                            | --                      

10

---



# NOTE 5  SECURITIES

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):

# Available for Sale

|                             | Amortized  
   Cost | Gross    
 Unrealized  
    Gains | Gross   
 Unrealized 
   Losses | Estimated
  Market
   Value
|---------------------------- | ------------------- | --------------------------------- | ------------------------------- | ---------------------------
|                             |                     |                                   |                                 |                            
|June 30, 2005 (Unaudited)    |                     |                                   |                                 |                            
|Taxable variable rate demand |                    
|municipal revenue bonds,     |                    
|short-term corporate         |                    
|commercial paper, and bonds  |                    
|of government agencies       |                     | $37,798                           |                                 | $8                         
|                             |                     |                                   |                                 |                            

# NOTE 6 - LOANS

Loans are as follows
(000's omitted):

|                        | June 30, 2005 | December 31,2004
|----------------------- | ------------- | ----------------
|                        |               |                 
|Commercial              |               | $  57,135       
|Commercial real estate  |               | 32,099          
|Residential real estate |               | 21,010          
|Construction            |               | 16,183          
|Consumer                |               | 2,870           
|                        |               |                 
|Total                   |               | $129,297        
|                        |               |                 

Activity in the allowance for loan
losses is as follows (000s omitted):

|                                        | Three MonthsEnded June 30, | Six MonthsEnded June 30,
|--------------------------------------- | -------------------------- | ------------------------
|                                        |                            |                         
|
|                                        |                            |                         
|Balance - Beginning of period           |                            | $ 1,363                 
|Provision charged to operations         |                            | 260                     
|Charge-offs                             |                            | (117                    
|Recoveries                              |                            | --                      
|                                        |                            |                         
|Balance - End of year                   |                            | $ 1,506                 
|                                        |                            |                         
|Allowance  for  loan  losses  to  total |                           
|loans                                   |                            | 1.16                    

11

---



# NOTE 7  DEPOSITS

Deposits are summarized as follows (000s
omitted):

|                                             | June 30, 2005(Unaudited) | December 31, 2004
|-------------------------------------------- | ------------------------ | -----------------
|                                             |                          |                  
|Non-interest bearing demand deposit accounts |                          | $  26,207        
|Interest-bearing demand deposit accounts     |                          | 7,054            
|Savings accounts                             |                          | 5,461            
|Money market accounts                        |                          | 59,323           
|Certificates of deposit                      |                          | 57,936           
|                                             |                          |                  
|Total deposits                               |                          | $155,981         
|                                             |                          |                  

# NOTE 8  FHLB
ADVANCES

Advances from the Federal Home Loan
Bank (FHLB) were as follows (000s omitted):

|                                                             | June 30, 2005(Unaudited) | December 31, 2004
|------------------------------------------------------------ | ------------------------ | -----------------
|                                                             |                          |                  
|
|Maturity in July 2005, variable rate at 3.46%                |                          | $  5,000         
|Maturities from April 2005 through October 2009, fixed rates |                         
|ranging from 1.83% to 3.75%, weighted average of 2.76%       |                          | 7,200            
|                                                             |                          |                  
|Total FHLB Advances                                          |                          | $12,200          
|                                                             |                          |                  

Advances from the FHLB are
collateralized by qualifying investments securities with estimated market values of
$15,590,000 and $14,127,000 at June 30, 2005 and December 31, 2004. The advances are due
in full at maturity and the fixed rate advances are subject to a prepayment penalty if
repaid prior to maturity.

# NOTE 9  MINIMUM
REGULATORY CAPITAL REQUIREMENTS

Banks and bank holding companies are
subject to regulatory capital requirements administered by federal banking agencies.
Capital adequacy guidelines and, additionally for Banks, prompt corrective action
regulations, involve quantitative measures of assets, liabilities, and certain
off-balance-sheet items calculated under regulatory accounting practices. Capital amounts
and classifications are also subject to qualitative judgments by regulators. Failure to
meet capital requirements can initiate regulatory action. The prompt corrective action
regulations provide five classifications, well capitalized, adequately capitalized,
undercapitalized and critical undercapitalized, although these terms are not used to
represent overall financial condition. If adequately capitalized, regulatory approval is
required to accept brokered deposits. If undercapitalized, capital distributions are
limited, as is asset growth and expansion, and plans for capital restoration are required.
The Bank and the Corporation were well-capitalized as of June 30, 2005 and December 31,
2004.

12

---



# NOTE 9  MINIMUM
REGULATORY CAPITAL REQUIREMENTS (CONTINUED)

The Banks and
Corporations actual capital amounts and ratios as of June 30, 2005 and December 31,
2004 are presented in the following table (000s omitted):

|                          | Actual | For CapitalAdequacy Purposes | To be Well-Capitalized
|------------------------- | ------ | ---------------------------- | ----------------------
|                          |        |                              |                       
|
|                          |        |                              |                       
|As of June 30, 2005:      |        |                              |                       
|Total risk-based capital  |       
|(to risk-weighted assets) |       
|Bank                      |        | $15,262                      |                       
|Consolidated              |        | 18,245                       |                       
|Tier I Capital            |       
|(to risk weighted assets) |       
|Bank                      |        | $13,756                      |                       
|Consolidated              |        | 16,739                       |                       
|Tier I Capital            |       
|(to average assets)       |       
|Bank                      |        | $13,756                      |                       
|Consolidated              |        | 16,739                       |                       
|As of December 31, 2004:  |       
|Total risk-based capital  |       
|(to risk-weighted assets) |       
|Bank                      |        | $14,613                      |                       
|Consolidated              |        | 17,688                       |                       
|Tier I Capital            |       
|(to risk weighted assets) |       
|Bank                      |        | $13,333                      |                       
|Consolidated              |        | 16,408                       |                       
|Tier I Capital            |       
|(to average assets)       |       
|Bank                      |        | $13,333                      |                       
|Consolidated              |        | 16,408                       |                       

13

---



# NOTE 10  STANDBY
AND COMMERCIAL LETTERS OF CREDIT AND FINANCIAL GUARANTEES

The Corporation is a party to credit-related
financial instruments with off-balance-sheet risk in the normal course of business to meet
the financing needs of its customers. These financial instruments include commitments to
extend credit, commercial and standby letters of credit, and unfunded commitments under
lines of credit. Such commitments involve, to varying degrees, elements of credit and
interest rate risk in excess of the amount recognized in the consolidated balance sheet.
The Corporations exposure to credit loss is represented by the contractual amount of
these commitments. The Corporation follows the same credit policies in making commitments
as it does for on-balance-sheet instruments.

At June 30, 2005 and December 31,
2004, the following financial instruments were outstanding whose contract amounts
represent credit risk (000s omitted):

|                                           | June 30, 2005(Unaudited) | December 31, 2004
|------------------------------------------ | ------------------------ | -----------------
|                                           |                          |                  
|Commitments to grant loans                 |                          | $  5,205         
|Unfunded commitments under lines of credit |                          | 28,975           
|Commercial and standby letters of credit   |                          | 243              

# NOTE 11 
SUBSEQUENT EVENTS

On July 14, 2005 the Corporation
completed a rights offering. A total of 165,776 shares were purchased in the rights
offering (63.2% of the 262,192 shares offered). The Corporation received approximately
$2,983,968 in gross proceeds in connection with the rights offering, which it intends to
use to purchase a majority interest in Huron Valley State Bank, a Michigan banking
corporation that intends to commence business early in the 3rd quarter
following capitalization and receipt of final regulatory approvals.

# NOTE 12  RECENT
ACCOUNTING PRONOUNCEMENTS

In
May 2005, the Financial Accounting Standards Board issued SFAS No. 154,
Accounting Changes and Error Corrections. This Statement replaces APB
Opinion No. 20, Accounting Changes, and FASB Statement No. 3,
Reporting Accounting Changes in Interim Financial Statements. SFAS 154
carries forward the guidance contained in Opinion 20 for reporting the correction of an
error in previously issued financial statements and a change in accounting estimate.
However, SFAS 154 changes the requirements for the accounting for and reporting of a
change in accounting principle. Under this Statement, every voluntary change in accounting
principle requires retrospective application to prior periods financial statements,
unless it is impracticable. It also applies to changes required by an accounting
pronouncement in the unusual instance that the pronouncement does not include specific
transition provisions. When a pronouncement includes specific transition provisions, those
provisions should be followed. This Statement is effective for accounting changes and
corrections of errors made in fiscal years beginning after December 15, 2005,
although earlier application is permitted for changes and corrections made in fiscal years
beginning after June 1, 2005. The Company expects no significant effect on its
financial statements as a result of the adoption of this Statement.

14

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# Item 2

# MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

The following analysis discusses changes
in the financial condition and results of operations of the Corporation for the periods
presented and should be read in conjunction with the Corporations Consolidated
Financial Statements and notes thereto, appearing in Part I, Item 1 of this document.

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 Corporation 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 Corporation, are generally
identifiable by use of the words believe, expect,
intend, anticipate, estimate, project or
similar expressions. Our 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 our operations and future prospects 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 our
market area and accounting principles, policies and guidelines. These risks and
uncertainties should be considered in evaluating forward-looking statements and undue
reliance should not be placed on such statements. Further information about us and our
business, including additional factors that could materially affect our financial results,
is included in our filings with the Securities and Exchange Commission.

General

Clarkston
Financial Corporation (the Corporation) is a Michigan corporation incorporated
on May 18, 1998. The Corporation 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. We provide 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. We operate seven customer service locations including
three full service branches.

Critical Accounting
Policies

The
Corporations critical accounting policies are described in the financial section of
our 2004 annual report. Management believes our critical accounting policies relate to the
allowance for loan losses, income taxes and stock based compensation.

15

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Comparison of Financial
Condition at June 30, 2005 and December 31, 2004

Our
total assets increased by $22.8 million or 14.0% to $186.2 million at June 30, 2005, from
$163.4 million at December 31, 2004. The continued growth is attributable to ongoing
marketing efforts for deposits and an increase in lending relationships. We anticipate
that our assets will continue to grow during 2005.

Cash
and cash equivalents, which include federal funds sold and short-term investments,
increased $11.3 million or 289.7% to $15.2 million at June 30, 2005 from $3.9 million at
December 31, 2004. The increase is due primarily to increased deposits, and sales of
securities, which funds have not yet been reinvested in loans. In addition, approximately
$1.8 million of this cash represents funds held in escrow for Huron Valley State Bank, our
DeNovo institution scheduled to open on August 15, 2005. The loan pipeline is strong, and
we do not anticipate this large cash balance continuing in the future.

Securities
decreased $7.1 million or 16.0% to $37.3 million at June 30, 2005 from $44.4 million at
December 31, 2004. This decrease was in line with the Banks plan and is indicative
of the strong loan growth experienced in the first half of the year. The bank continues to
have excellent liquidity and will monitor its level of securities to ensure proper
liquidity is maintained.

Total
loans held for sale increased $301,000 or 46.2% to $945,000 at June 30, 2005 from $644,000
at December 31, 2004. This increase is due primarily to timing, and an increase in
activity in the Corporations mortgage banking division.

Total
portfolio loans increased by $17.8 million or 16.0% to $129.3 million at June 30, 2005
from $111.5 million at December 31, 2004. This growth rate is in line with our business
plan and a similar, or slightly slower rate is expected to continue throughout 2005. The
growth in loans was primarily organic, with a $3.3 million contribution from the Huron
Valley Loan Center. Commercial loans increased $1.5 million, or 2.7% from $55.6 million at
December 31, 2004 to $57.1 million at June 30, 2005. Commercial real estate loans
increased the most in dollars and percentage, growing from $21.1 million at December 31,
2004 to $32.1 million at June 30, 2005. The construction lending portfolio also showed
significant growth, increasing $2.2 million from $14.0 million at December 31, 2004 to
$16.2 million at June 30, 2005. In addition, residential real estate loans increased by
$3.3 million, or 18.6% from $17.7 million to $21.0 million for the same period. We have
added staff and products in the residential lending area to continue to grow this business
and provide a complementary product to our customers. These additional investments, as
well as new technologies expected to be implemented during 2005, should allow us to
increase fee income from mortgage banking activities as well as to expand the held for
investment residential lending portfolio.

The
allowance for loan losses as of June 30, 2005 was $1.5 million representing approximately
1.16% of total loans outstanding, compared to $1.3 million, or 1.14% of loans outstanding
as of December 31, 2004. The large increase in the provision for loan loss was primarily
due to two factors. The Bank had two charge-offs in the quarter totaling approximately
$111,400, and a large specific reserve of $350,000 was required on one other commercial
relationship, management does not anticipate any additional reserves being necessary for
this credit. The additional loan loss provision necessitated by these items was the
primary cause of the increase in the allowance for loan loss. We believe that the
allowance for loan losses is sufficient to cover losses inherent in the portfolio.

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 our inception. The methodology employed utilizes several factors to determine the
appropriateness of the allowance. Specifically, historical loss experience, financial
condition of borrowers, collateral adequacy, credit risk rating system and current
economic conditions are incorporated in this analysis.

16

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The
primary risk element considered by management regarding each installment and residential
real estate loan is the lack of timely payments. We have a reporting system that monitors
past due loans and has adopted policies to pursue its creditors rights in order to
preserve our 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.

The
adequacy of the allowance is based on the application of our credit risk rating system
which identifies problem credits and ranks loans by specific categories. Moreover, we use
peer comparisons and industry data for similar type loans to further assess the proper
level of the loan loss allowance. Going forward, we will closely monitor the performance
of the loan portfolio as it becomes more seasoned.

Total
deposit balances increased $22.7 million or 17.0% to $156.0 million at June 30, 2005 from
$133.3 million at December 31, 2004. Non-interest bearing checking deposits had the
largest increase in terms of percentage, increasing from $19.8 million at December 31,
2004 to $26.2 million at June 30, 2005, a $6.4 million or 32.6% increase. Approximately
$1.8 million of this increase was due to the Bank holding the deposits of the prospective
investors in Huron Valley State Bank in escrow. This amount was provided to Huron Valley
State Bank during the 3rd quarter. Money market and savings accounts showed the
2nd largest percentage increase during the year to $64.8 million from $54.7
million at December 31, 2004, an 18.5% increase. Time deposits increased $7.7 million, or
15.5% for the year, with a balance of $57.9 million at June 30, 2005, compared to $50.2
million at December 31, 2004. These increases were offset by a slight decrease in
interest-bearing checking accounts, which decreased by $1.6 million, or 18.4% to a balance
of $7.1 million from $8.7 million at December 31, 2004. Our new branch in the Clarkston
Business District has been a large contributor to the growth in non-time deposits.
Currently the new branch has approximately $9.0 million in non-time deposits as of June
30, 2005, compared to $500,000 at December 31, 2004. We continue to focus on providing
superior customer service and products to our local community in order to grow our deposit
base.

The
Bank is a member of the Federal Home Loan Bank of Indianapolis, and utilizes advances from
this institution to bolster liquidity. At June 30, 2005, we have $12.2 million in advances
outstanding, with no change since December 31, 2004. As we expand our residential lending
area, this source of funds may be used more frequently, as the assets funded can be
collateralized.

We
have 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, 2005, we had retained earnings of $3.9 million compared to $3.6 million at
December 31, 2004 which was a result of net income of $295,000. The other area of
significant change in the equity of the Corporation was in the accumulated other
comprehensive income, which saw a decrease of $59,000, or 24.4%. This decrease was
primarily the result of changes in interest rates causing a decrease in the market value
of the Corporations security portfolio. We do not believe that the value of any of
the securities in the portfolio are permanently impaired. The changes in common stock and
additional paid in capital were due to the issuance of restricted stock to members of
management, in accordance with the previously approved plan. Managements focus on
strong expense discipline and increases in the net interest margin, due to increases in
underlying rates and changes in the asset mix, continues to enhance profitability.

16

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Comparison of Operating Results
for the Three Months Ended June 30, 2005 and 2004

Our
net profit was $116,000 for the second quarter of 2005 compared to net profit of $332,000
for the second quarter of 2004. Operating results related to the organization of our de
novo (new) bank, Huron Valley State Bank and our entrance into the mortgage business
decreased net income $89,400 and $101,700, respectively in the quarter ended June 30,
2005. Huron Valley State Bank is scheduled to open on August 15, 2005. Our mortgage
banking operation, while providing some marginal revenue, is not yet at critical mass
relative to the investment made. Net interest income increased 15.4% or $270,000 from
$1.26 million in the second quarter of 2004 to $1.53 million for 2005. Non-interest income
increased $103,000, or 68.7% for the second quarter of 2005 compared to the same period in
2004, while non-interest expense increased $480,000 or 52.4% over the same periods.

Interest
income for the second quarter of 2005 was $2.7 million, an increase of 42.1% from interest
income of $1.9 million for the second quarter of 2004. This increase resulted primarily
from increased loan balances and increased rates, primarily on variable rate loans, due to
increases in the discount rate. The increase in interest income from loans was partially
offset by reduced interest income from securities, caused by decreased balances
outstanding. Interest expense was $1.2 million for the second quarter of 2005, compared to
$679,000 for the second quarter of 2004, a 72.3% increase. The increase is due in large
part to increased balances needed to fund loan growth, increases in the discount rate
narrowing margins putting pressure on deposit pricing, and the overall competitiveness of
our local markets.

We
had an allowance for loan losses of approximately 1.16% of total loans at June 30, 2005.
The provision expense for loan loss for the second quarter of 2005 was $260,000. The
activity in the allowance for loan loss is discussed in more detail above in the balance
sheet discussion. Management believes the current rate of providing for the loan loss
reserve is adequate.

Non-interest
income was $253,000 for the second quarter of 2005, a $103,000, or 68.7% increase over the
second quarter of 2004 when non-interest income was $150,000. The largest portion of the
increase in non-interest income was seen in service charges and other fee income, which
increased $77,000, or 53.5% over the same period last year. The Corporations focus
on checking accounts and the implementation of a bounce protection product in the fourth
quarter of 2004 continues to increase these fees significantly.

Non-interest
expense was $1.4 million for the second quarter of 2005, a $480,000 or 52.4% increase over
the second quarter of 2004 when non-interest expense was $916,000. The increase is
primarily attributable to higher salary and benefit costs of $314,000, or 67.0% due to the
increase in full time equivalents needed to manage the growth of the Bank. Occupancy
expense has increased $84,000, or 71.8% as a result of the two new ventures discussed
above and also due to the new full service branch which opened for business in the fourth
quarter of 2004.

Comparison of Operating Results
for the Six Months Ended June 30, 2005 and 2004

Our
net profit was $295,000 year to date 2005 compared to net profit of $634,000 for the same
period in 2004. Operating results related to the organization of our de novo (new) bank,
Huron Valley State Bank and our entrance into the mortgage business decreased net income
$216,800 and $162,500, respectively in the six months ended June 30, 2005. Huron Valley
State Bank is scheduled to open on August 15, 2005. Our mortgage banking operation, while
providing some marginal revenue, is not yet at critical mass relative to the investment
made. Net interest income increased 22.5% or $550,000 from $2.46 million in the second
quarter of 2004 to $3.01 million for 2005. Non-interest income increased $214,000, or
75.6% year to date 2005 compared to the same period in 2004, while non-interest expense
increased $980,000 or 55.5% over the same periods.

18

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Interest
income year to date 2005 was $5.2 million, an increase of 36.5% from interest income of
$3.8 million year to date 2004. This increase resulted primarily from increased loan
balances and increased rates, primarily on variable rate loans, due to increases in the
discount rate. The increase in interest income from loans was partially offset by reduced
interest income from securities, caused by decreased balances outstanding. Interest
expense was $2.2 million year to date 2005, compared to $1.4 million for the second
quarter of 2004, a 61.9% increase. The increase is due in large part to increased balances
needed to fund loan growth, increases in the discount rate, and the overall
competitiveness of our local markets.

We
had an allowance for loan losses of approximately 1.16% of total loans at June 30, 2005.
The provision expense for loan loss year to date 2005 was $355,000, an increase of
$166,000 over the $189,000 amount for the same period in 2004. The activity in the
allowance for loan loss is discussed in more detail above in the balance sheet discussion.
Management believes the current rate of providing for the loan loss reserve is adequate.

Non-interest
income was $497,000 year to date 2005, a $214,000, or 75.6% increase over the same period
in 2004 when non-interest income was $283,000. The Corporation has been investing
additional resources in the residential lending area, and the dividends from this
investment are apparent in the $40,000, or 114.3% increase in gains on sale of residential
loans. While we anticipate that this line of business will enhance our non-interest income
in the future, we do not expect this area to become a significant portion of our total
revenue in the near future. The largest portion of the increase in non-interest income was
seen in service charges and other fee income, which increased $150,000, or 57.3% over the
same period last year. The Corporations continued focus on checking accounts and the
implementation of a bounce protection product increased these fees significantly.

Non-interest
expense was $2.8 million year to date 2005, a $1.0 million or 55.6% increase over the same
period in 2004 when non-interest expense was $1.8 million. The increase is primarily
attributable to higher salary and benefit costs of $634,000, or 71.0% due to the increase
in full time equivalents needed to manage the growth of the Bank. Occupancy expense has
increased as a result of the two new ventures discussed above and also due to the new full
service branch which opened for business in the fourth quarter of 2004.

Liquidity and Capital
Resources

The
Corporation obtained its initial equity capital in an initial public offering of its
common stock in November 1998. We have successfully grown through our first five years of
operation. In 2003, we evaluated the need to raise additional capital in order to keep
pace with our current growth strategy. In December 2003, we completed an offering of $4.0
million of cumulative preferred securities (Trust Preferred Securities) to
further support the Corporations growth into the immediate future.

Management
believes that its current capital will provide us with adequate capital to support our
expected level of deposit and loan growth and to otherwise meet our capital requirements
for the next year. One of the growth strategies we intend to pursue, which could have an
effect on our equity and or require additional capital, is growth through acquisition or
the start up of additional DeNovo banks.

19

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In July 2005, the Corporation
completed a rights offering which allowed each holder of the Corporations common
stock as of the June 6, 2005 record date to purchase 1 additional share of common stock
for every 4 shares held, while also offering an opportunity to purchase a limited number
of shares above their basic subscription right (the over-subscription privilege). A total
of 165,776 shares were purchased in the rights offering (63.2% of the 262,192 shares
offered). Of the 165,776 shares purchased, 127,183 shares were basic subscriptions and
38,593 shares were over-subscriptions. The Corporation received approximately $2,983,968
in gross proceeds in connection with the rights offering, which it intends to use to
purchase a majority interest in Huron Valley State Bank, a Michigan banking corporation
that intends to commence business early in the 3rd quarter following
capitalization and receipt of final regulatory approvals.

Capital Resources at June
30, 2005 (in thousands)

|                                   | Tier 1
Leverage Ratio | Tier 1    Capital Ratio | Total Risk-BasedCapital Ratio
|---------------------------------- | --------------------- | ----------------------- | -----------------------------
|Minimum regulatory requirement for |                       |                         |                              
|Capital adequacy                   |                       | 4                       | .00%                         
|Well capitalized regulatory level  |                       | 5                       | .00%                         
|Consolidated                       |                       | 9                       | .35%                         
|Bank                               |                       | 7                       | .74%                         

20

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The following table shows the dollar
amounts by which the Corporations capital (on a consolidated basis) exceeds current
regulatory requirements on a dollar-enumerated basis:

|                                         | (in thousands of dollars)
|---------------------------------------- | -------------------------
|
|Capital balances at June 30, 2005        |                          
|Required regulatory capital              |                          
|Capital in excess of regulatory minimums |                          
|                                         |                          
|Actual capital balances                  |                          
|                                         |                          

The
liquidity of a financial institution reflects its ability to provide funds to meet loan
requests, to accommodate possible outflows of deposits and to take advantage of interest
rate market opportunities. Our sources of liquidity include our borrowing capacity with
the Federal Home Loan Bank, loan payments by our borrowers, maturity and sales of our
securities available for sale, growth of our deposits and deposit equivalents and various
capital resources. Liquidity management involves the ability to meet the cash flow
requirements of our customers. Our customers may be either borrowers with credit needs or
depositors wanting to withdraw funds. We believe our liquidity position is sufficient to
meet these needs.

As indicated by the consolidated
statement of cash flows, deposits continue to be the primary source of funding for loan
growth with an increase of $26.8 million, in cash flows from deposits over the same period
last year. These funds were deployed primarily into loans and cash, where the cash flows
increased $7.5 million and $9.5 million, respectively. We anticipate that future loan
growth will be funded primarily with deposit growth, and secondarily with other wholesale
sources of funding, not through the liquidation of the security portfolio

# Item 3 CONTROLS AND
PROCEDURES

|(a) |  | Evaluation of Disclosure Controls and Procedures. The Corporations
               Chief Executive Officer and Chief Financial Officer, after evaluating the
               effectiveness of the Corporation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
               Corporations disclosure controls and procedures were adequate and
               effective to ensure that material information relating to the Corporation would
               be made known to them by others within the Corporation, 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 Corporations internal control over
               financial reporting that have materially affected or are reasonably likely to
               materially affect the Corporations internal control over financial
               reporting.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

21

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# PART II  OTHER
INFORMATION

# Item 1.      Legal
Proceedings.

From
time to time, we may be involved in various legal proceedings that are incidental to our
business. In our opinion, we are not a party to any current legal proceedings that are
material to our financial condition, either individually or in the aggregate.

# Item 2.      Changes in
Securities and Use of Proceeds.

None.

# Item 3.      Defaults Upon
Senior Securities.

None.

# Item 4.      Submission of Matters
to a Vote of Securities Holders

| | (a) | The annual meeting of the shareholders of the Corporation was held on May 10,
          2005.
| | --- | ---------------------------------------------------------------------------------------------

| | (b) | The following directors were elected at the annual meeting for a term expiring
          in 2008: Louis D. Beer and William J. Clark. Other directors whose terms
          continued after the meeting are as follows: Edwin L. Adler, John H. Welker,
          Charles L. Fortinberry, Bruce H. McIntyre and Thomas E. Kimble.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | At the annual meeting directors were elected for terms expiring in 2005:
| | --- | ------------------------------------------------------------------------

|Director Nominee | For | Against | Abstain
|---------------- | --- | ------- | -------
|Louis D. Beer    |     | 890,410 |        
|William J. Clark |     | 891,290 |        

| | (d) | At
the annual meeting the shareholders approved the Clarkston Financial
          Corporation Employee Stock Purchase Plan with 344,562 shares voted
          For, 17,179 shares voted Against and 10,826 shares
voted           Abstain.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Item 5.      Other
Information.

None.

# Item 6.      Exhibits.

Exhibits

|31.1 | Certificate of the Chief Executive Officer of Clarkston Financial Corporation pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------

22

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|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

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SIGNATURES

In
accordance with the requirements of the Securities Exchange Act of 1934, as amended, the
Registrant has duly caused this Quarterly Report on Form 10-QSB for the quarter ended June
30, 2005, 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 and Chief Financial Officer
/s/ J. Grant Smith                                 
J. Grant Smith
Chief Financial Officer and Chief Operating Officer
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

DATE: August 12, 2005

24

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EXHIBIT LIST

| |  |  |  | 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.
| |  |  |  | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

25