# 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, 2002
                                                        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.  YesX No

The number of shares
outstanding of each of the issuers classes of common stock, as of the
latest practicable date: 1,026,012 shares of the Companys Common Stock (no
par value) were outstanding as of June 30, 2002.

Transitional Small Business Disclosure Format (check one):  Yes  NoX



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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..........................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 3-7 
8-11  
12-14
|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............................................................. | 15
15
15
15
15
15
|Signatures | .....................................................................................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 16               

2

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## Part I  Financial Information (unaudited)

CLARKSTON FINANCIAL CORPORATION
                                            CONSOLIDATED BALANCE SHEET
                                  June 30, 2002 (unaudited) and December 31, 2001
                                   (dollars in thousands, except per share data)

`June 30,              December 31,
                                                                        2002                    2001
                                                                  ----------------         ------------
                                                                     (Unaudited)
ASSETS

Cash and Cash Equivalents
       Total cash and due from banks........................          $      1,735           $    1,856
        Federal funds sold..................................                 2,799                3,975
                                                                      -------------          ----------
            Total Cash and Cash Equivalents.................                 4,534                5,831

Securities Held to Maturity.................................                15,744                5,605
Securities Available for Sale, at fair value................                43,821               36,905

Loans, less Loan Loss Reserve
       Total loans..........................................                40,171               34,455
       Allowance for loan losses............................                  (511)               (419)
                                                                      -------------          ----------
       Net Loans............................................                39,660               34,036

Net Property and Equipment..................................                 1,402                  794
Accrued interest receivable.................................                   456                  441
Deferred Tax Asset..........................................                   153                  140

Other Assets................................................                   165                  168
                                                                      ------------           ----------
            Total Assets....................................          $    105,935           $   83,920
                                                                      ============           ==========

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits
       Noninterest-bearing..................................                12,195                9,230
       Interest-bearing.....................................                83,887               64,930
                                                                      ------------           ----------
            Total deposits..................................                96,082               74,160
       Accrued Expenses and Other Liabilities...............                   911                1,093

Shareholders' Equity
       Common stock, no par value: 10,000,000
             Shares authorized; 1,026,012 shares
             issued and outstanding as of June 30,
             2002 and December 31, 2001.....................                 4,306                4,306
       Capital surplus......................................                 4,306                4,306
       Retained Earnings....................................                   388                   88
       Accumulated other comprehensive income (loss)........                   (58)                (33)
                                                                      -------------          ----------
             Total Shareholder Equity.......................                 8,942                8,667
                                                                      ------------           ----------

              Total Liabilities and Shareholders' Equity....          $    105,935           $   83,920
                                                                      =============          ==========`

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, 2002 and June 30, 2001
(dollars in thousands, except per share data)
(unaudited)

`Three Months     Three Months       Six Months        Six Months
                                                             Ended             Ended            Ended             Ended
                                                         June 30, 2002     June 30, 2001    June 30, 2002     June 30, 2001
                                                         -------------     -------------    -------------     -------------
                                                          (unaudited)       (unaudited)      (unaudited)       (unaudited)

Interest Income
       Loans, including fees .........................         $745           $   590            $1,437        $   1,167
       Securities.....................................          739               468             1,402              933
       Federal Funds sold.............................           17                38                35              100
                                                          ---------         ---------         ---------        ---------
            Total interest income.....................        1,501             1,096             2,874            2,200

Interest Expense
       Deposits.......................................          667               597             1,287            1,029
       Other..........................................            0                0                 0                0
                                                          ---------         ---------         ---------        ---------
            Total interest expense....................          667               597             1,287            1,209

Net Interest Income...................................          834               499             1,587              991

Provision for loan losses.............................           30                24                45               41
                                                          ---------         ---------         ---------        ---------

Net interest income
After provision for loan losses.......................          804               475             1,542              950

Noninterest income
     Gains on sale of securities......................           21                17                41               38
     Other income.....................................           95                80               180              155
                                                          ---------         ---------         ---------        ---------
            Total noninterest income..................          116                97               221              193


Noninterest expense
     Salaries and benefits............................          347               207               690              404
     Occupancy expense of premises....................           63                36               126               74
     Furniture and equipment expense..................           42                38                88               70
     Computer and data processing expenses............           60                50               120               97
     Advertising and public relations.................           27                34                46               52
     Professional fees................................           30                21                72               57
     Amortization of deposit premium
         and conversion cost..........................            8                 6                16                2
     Other expense....................................           86                37               151               68
                                                          ---------         ---------         ---------        ---------
            Total noninterest expense.................          663               429             1,309              834
                                                          ---------         ---------         ---------        ---------

Profit before federal income tax......................          257               143               454              309

Federal income tax....................................           82                45               154               97
                                                          ---------         ---------         ---------        ---------

Net profit ...........................................          175          $     98               300          $   212
                                                          =========         =========         =========        =========

Basic and diluted profit per share....................        $ .17          $    .10             $ .29         $    .21
                                                          =========         =========         =========        =========`

See accompanying notes to consolidated financial statements.

4

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CLARKSTON FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three and Six Month Periods Ended June 30, 2002 and June 30, 2001
(dollars in thousands)
(Unaudited)

`Three Months     Three Months      Six Months     Six Months
                                                            Ended             Ended           Ended           Ended
                                                           June 30,         June 30,         June 30,       June 30,
                                                             2002             2001             2002           2001
                                                             ----             ----             ----           ----

Net profit as Reported............................            $175           $   98             $300         $  212

Other Comprehensive Income (loss), Net of Tax:

      Change in unrealized gain / loss on securities
          available for sale......................             473              (6)             (25)             17
                                                       -----------            -----       ----------         ------

Comprehensive Profit..............................            $648           $   92             $275        $   229
                                                       ===========           ======       ==========        =======`

See accompanying notes to consolidated financial statements.

5

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CLARKSTON FINANCIAL CORPORATION
                             CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
                                          Six Months ended June 30, 2002
                                              (dollars in thousands)
                                                    (Unaudited)

`Accumulated
                                                                                                   Other              Total
                                                     Common      Capital      Retained         Comprehensive      Shareholders'
                                                      Stock      Surplus      Earnings             Income            Equity
                                                    ---------    -------      ---------      ------------------  --------------

Balance December 31, 2001.....................      $  4,306     $ 4,306      $     88           $    (33)           $   8,667

Net income for six months
Ended June 30, 2002 (unaudited)...............                                     300                                     300

Decrease  in  fair  market  value  of  securities
available for sale............................             0           0             0                (25)                 (25)
                                                    --------     -------      --------           ---------           ----------

Balance June 30, 2002.........................      $  4,306     $ 4,306      $    388           $    (58)           $   8,942
                                                    ========     =======      ========           =========           =========`

See accompanying notes to consolidated financial statements.

6

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CLARKSTON FINANCIAL CORPORATION
                                       CONSOLIDATED STATEMENT OF CASH FLOWS
                                 Six Months ended June 30, 2002 and June 30, 2001
                                              (dollars in thousands)
                                                    (unaudited)

`Six Months                          Six Months
                                                                               Ended                               Ended
                                                                             June 30,                            June 30,
                                                                               2002                                 2001
                                                                            ----------                           ----------

Net Cash Provided by Operating Activities:
       Net cash provided by operating activities.....................             $        295                  $        242

Cash Flows from Investing Activities:
       Net increase in loans.........................................                  (5,716)                       (3,775)
       Purchase of held-to-maturity securities.......................                 (10,139)                       (2,906)

       Proceeds from maturities of held-to-maturity securities.......                        0                        10,605
       Proceeds from sales of held-to-maturity securities............                        0                         3,243
       Purchase of available-for-sale securities.....................                 (18,964)                      (30,465)

       Proceeds from sales of available-for-sale securities..........                   11,969                        18,806
       Property and equipment expenditures...........................                    (664)                         (439)
                                                                         ---------------------         ---------------------
       Net cash provided by investing activities.....................                 (23,514)

Cash Flows from Financing Activities:
       Increase in deposits..........................................                   21,922                         7,664
                                                                         ---------------------         ---------------------

Net increase in cash and cash equivalents............................                  (1,297)                         2,975
Cash and cash equivalents at beginning of year.......................                    5,831                         3,412
                                                                         ---------------------         ---------------------

Cash and cash equivalents at June 30, 2002 and 2001..................                   $4,534                   $     6,387
                                                                         =====================         =====================`

See accompanying notes to consolidated financial statements.

7

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CLARKSTON FINANCIAL CORPORATION
                                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2002 (unaudited) and December 31, 2001

## NOTE 1 
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, 2002, are not necessarily
indicative  of the results that may be expected for the year ending  December  31, 2002.  For further  information,
refer to the  consolidated  financial  statements and footnotes  thereto  included in the Company's Proxy Statement
dated April 1, 2002 containing audited financial statements as of December 31, 2001, 2000 and 1999.

## 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 - 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
intercompany accounts and transactions have been eliminated in consolidation.

8

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CLARKSTON FINANCIAL CORPORATION
                                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2002 (unaudited) and December 31, 2001

## NOTE 4 -
SECURITIES

The amortized cost and fair
values of securities were as follows (dollars in thousands):

`Available for Sale
                                                                 Gross            Gross        Estimated
                                                Amortized      Unrealized      Unrealized       Market
                                                   Cost          Gains           Losses          Value
                                                ---------      ----------      ----------       -------

  June 30, 2002 (Unaudited)
  -------------------------
         Taxable variable rate demand
             Municipal revenue bonds,
             Short term corporate
             Commercial paper, and bonds
             of government agencies..........    $43,909         $   198       $    (286)       $ 43,821
                                                 =======         =======       ==========       ========

Held to Maturity


  June 30, 2002 (Unaudited)
  -------------------------
         Taxable variable rate demand
             Municipal revenue bonds,
             Short term corporate
             Commercial paper, and bonds
             of government agencies..........    $15,744         $    47       $     (65)       $ 15,726
                                                 =======         =======       ==========       ========`

Contractual maturities of
debt securities at June 30, 2002, were as follows. 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.

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

      Due from 2002 to 2003....................................              $   0                 $   0
      Due from 2003 to 2005....................................                  0                     0
      Due from 2005 to 2007....................................                998                 1,008
      Due from 2007 to 2032....................................             42,911                42,813
                                                                           -------               -------
                                                                           $43,909               $43,821
                                                                           =======               =======

                                                                                 Held-To-Maturity
                                                                         -------------------------------
                                                                        Amortized            Estimated
                                                                          Cost              Market Value
                                                                        ---------           ------------

      Due from 2002-2003.......................................              $   0                 $   0
      Due from 2003-2005.......................................                  0                     0
      Due from 2005-2007.......................................                  0                     0
      Due from 2007-2032.......................................             15,744                15,726
                                                                           -------               -------
                                                                           $15,744               $15,726
                                                                           =======               =======`

(Continued)

9

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CLARKSTON FINANCIAL CORPORATION
                                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2002 (unaudited) and December 31, 2001

## NOTE 5 - LOANS

Loans are as follows (dollars in thousands):

`June 30,            December 31,
                                                                          2002                  2001
                                                                    ---------------         ------------
                                                                      (Unaudited)

        Commercial.........................................                 $31,189              $25,299
        Mortgage...........................................                   5,914                5,441
        Consumer...........................................                   3,068                3,715
                                                                           --------             --------
                                                                             40,171               34,455
        Allowance for loan losses..........................                     511                  419
                                                                           --------             --------
                                                                            $39,660             $ 34,036
                                                                            =======             ========`

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

`Ended              Year Ended
                                                                      June 30, 2002         December 31,
                                                                       (Unaudited)              2001
                                                                       -----------          ------------


        Balance at beginning of period.....................                   $ 419         $        379
               Provision charged to operating expense......                      45                   90
        Net loan (charge-offs) recoveries..................                      47                 (50)
                                                                              -----         ------------

        Balance at end of period...........................                   $ 511         $        419
                                                                              =====         ============

        Allowance for loan losses as a percentage of
               loans at end of period......................                   1.27%                1.21%
                                                                              =====         ============`

(Continued)

10

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CLARKSTON FINANCIAL CORPORATION
                                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2002 (unaudited) and December 31, 2001

## NOTE 6 -
PREMISES AND EQUIPMENT - NET

Premises and equipment are as follows (dollars in thousands):

`(unaudited)
                                                                  June 30, 2002        December 31, 2001
                                                                  -------------        -----------------

Building and improvements..............................              $1,050                   $   404
Furniture and equipment                                                 670                       652
                                                                   --------                  --------

       Total Bank premises and equipment...............               1,720                     1,056

Less accumulated depreciation..........................                 318                       262
                                                                   --------                  --------

       Net carrying amount.............................              $1,402                   $   794
                                                                     ======                   =======`

## NOTE 7 - DEPOSITS

Interest-bearing deposits are summarized as follows (dollars in thousands):

`June 30,                 December 31,
                                                                     2002                       2001
                                                                --------------              ------------

Demand deposit accounts....................................             $ 5,008                 $  2,233
Money market accounts......................................              24,342                   17,291
Savings accounts...........................................               6,606                    5,692
Certificates of Deposit....................................              47,931                   39,714
                                                                       --------                 --------
                                                                       $ 83,887                 $ 64,930
                                                                       ========                 ========`

(Continued)

11

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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.

Financial Condition

Total assets of the Company  increased by $22.0 million or 26.2% to $105.9 million at June 30, 2002,  from
$83.9  million at December 31, 2001.  The increase in assets is primarily  attributable  to the Bank  continuing to
attract customer  deposits.  The Company  anticipates that the Bank's assets will continue to increase during 2002,
which is the Bank's fourth full year of operations.

Cash and cash  equivalents,  which include federal funds sold and short-term  investments,  decreased $1.3
million  or 22.4% to $4.5  million at June 30,  2002 from $5.8  million at  December  31,  2001.  The  decrease  is
primarily the result of reinvesting  cash into  investments in an effort to get better  utilization  and additional
spread income.

Securities  increased  $17.1  million  or 40.2% to $59.6  million at June 30,  2002 from $42.5  million at
December 31, 2001.  The increase is the result of deposit  growth and efforts to increase  spread income by keeping
less cash in federal funds.

Total loans  increased by $5.7 million or 16.5% to $40.2  million at June 30, 2002,  from $34.5 million at
December  31,  2001.  Management  believes  that total loans will  continue to increase  over time as economic  and
local market conditions improve.

The  allowance  for loan  losses as of June 30, 2002 was  $511,000,  representing  approximately  1.27% of
total loans outstanding, compared to $419,000 as of December 31, 2001.

Deposit growth continues to be robust increasing $21.9 million or 30% to $96.1
million for the six months ended June 30, 2002, from $74.2 million at December
31, 2001.  The deposit growth is attributable to aggressively marketing the
three new Bank branch offices opened in 2001.

As of  December 31,  2001, the Company had an  accumulated  profit of $88,000 and as of June 30, 2002, the
retained  earnings  was  $388,000.  The retained  earnings  continue to improve as the Bank has  increased  its net
interest and non-interest income while continuing to maintain low operating expenses.

12

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Results of Operations

The  Company's  net  profit  was
$175,000  for the second  quarter of 2002  compared to net profit of $98,000 for
the second quarter of 2001.  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,   2002   was $300,000 and included   a  federal   income   tax   provision   of
$154,000.

Interest  income  for the second
quarter of 2002 was $1.5 million,  an increase of 36.4% from interest  income of
$1.1 for the second  quarter of 2001.  Interest  income for the six months ended
June 30, 2002 was $2.9  million,  an increase of 31.8% from $2.2 million for the
six months  ended June 30,  2001.  This  increase  resulted  primarily  from the
increase in loans and  securities.  Interest  expense was $667,000 for the three
months  ended June 30,  2002,  an  increase  of 11.7% from  interest  expense of
$597,000 for the three months  ended June 30,  2001.  Interest  expense was $1.3
million for the six months ended June 30,  2002, a slight  increase of 8.3% from
interest  expense of $1.2 million for the six months  ended June 30, 2001.  This
consisted of interest paid on interest bearing deposits.

The  Company had an  allowance  for loan losses of  approximately  1.27% of total loans at June 30,  2002.
The  provision  expense for loan loss for the three month  period  ended June 30,  2002,  was  $30,000.  Management
believes the current rate of providing for the loan loss reserve is adequate.

In  each  accounting  period,  management  evaluates  the  problems  and  potential  losses  in  the  loan
portfolio.  Moreover,  consideration  is also given to off-balance  sheet items that may involve credit risk,  such
as commitments  to extend credit.  Management's  evaluation of the allowance is further based on  consideration  of
actual loss  experience,  the present and  prospective  financial  condition of borrowers,  adequacy of collateral,
industry  concentrations  within the portfolio and general economic  conditions.  The results of these  evaluations
are  reflected in the  allowance  and periodic  provision  for credit  losses.  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.

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.

Noninterest  expense was $663,000 for the second quarter of 2002, a $234,000 (or 54.5%)  increase over the
second quarter of 2001, the increase is primarily  attributable  to increases in
salaries and benefits  due to the increase of full time  equivalents  and normal
raises  given to  employees.  Noninterest  expense was $1.3  million for the six
months ended June 30, 2002,  an increase of $475,000 or 57.0%,  an increase over
the  six  months  ended  June  30,  2001. These  increases  are  consistent  with
management's  plans to grow the  assets of the Bank as noted by the  opening  of
several offices during 2001.

13

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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.  The Company believes it has sufficient capital for its present size, however, given the Company's growth strategy, the Company
expects it may be necessary to raise additional equity capital within the next twelve months.

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 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.

14

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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 7, 2002.                                                                                                                                                                                                                                                                                                       
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | The following  directors  were elected at the annual  meeting for a term  expiring in 2005:  Louis D.
              Beer and  William  J.  Clark.  Other  directors  whose  terms  continued  after  the  meeting  are as
              follows:  Edwin L.  Adler,  David T.  Harrison,  John H.  Welker,  Charles L.  Fortinberry,  Bruce H.
              McIntyre and Robert A. Olsen.
| | (c) | At the annual meeting directors were elected for terms expiring in 2005:                                                                                                                                                                                                                                                                                                                 
| |     | Director Nominee
Louis D. Beer
William J. Clark                                                                                                                                                                                                                                                                                                                                          

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

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

15

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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,  2002,  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, 2002

16

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EXHIBIT INDEX

|Exhibit | Description                                                                                                                                                                                                        
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|99.1    | Certificate of the Chief Executive 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. [To be filed by amendment.]
|99.2    | Certificate of the 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.                            

17

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# EXHIBIT 99-2

I, 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, 2002 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, 2002 fairly presents, in all material respects, the financial condition
and results of operations of Clarkston Financial Corporation.

Dated:  August 14, 2002

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

18