# 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 March 31, 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.   
YesXNo

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 March 31, 2002.

Transitional Small Business Disclosure Format (check one):  YesNoX



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|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 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
                                 March 31, 2001 (unaudited) and December 31, 2001
                                   (dollars in thousands, except per share data)

`March 31,           December 31,
                                                                           2002                 2001
                                                                         --------             --------
                                                                        (unaudited)
ASSETS

Cash and Cash Equivalents
       Total cash and due from banks.............................         $  1,503          $  1,856
        Federal funds sold.......................................            2,872             3,975
                                                                          --------          --------
            Total Cash and Cash Equivalents......................            4,375             5,831

Securities Held to Maturity......................................            5,602             5,605
Securities Available for Sale, at fair value.....................           44,565            36,905

Loans, less Loan Loss Reserve
       Total loans...............................................           35,658            34,455
       Allowance for loan losses.................................             (434)            (419)
                                                                          ---------         --------
       Net Loans.................................................           35,224            34,036

Net Property and Equipment.......................................              776               794
Accrued interest receivable......................................              619               441
Deferred Tax Asset...............................................              396               140

Other Assets.....................................................              183               168
                                                                          --------          --------
            Total Assets.........................................         $ 91,742          $ 83,920
                                                                          ========          ========

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits
       Noninterest-bearing.......................................            9,636             9,230
       Interest-bearing..........................................           72,583            64,930
                                                                          --------          --------
            Total deposits.......................................           82,219            74,160
       Accrued Expenses and Other Liabilities....................            1,227             1,093

Shareholders' Equity
       Common stock, no par value: 10,000,000
             Shares authorized; 1,026,012 shares
             issued and outstanding as of March 31,
             2002 and December 31, 2001..........................            4,306             4,306
       Capital surplus...........................................            4,306             4,306
       Retained Earnings.........................................              213                88
       Accumulated other comprehensive income (loss).............             (531)             (33)
                                                                          ---------         --------
             Total Shareholder Equity............................            8,294             8,667
                                                                          --------          --------

              Total Liabilities and Shareholders' Equity.........         $ 91,742          $ 83,920
                                                                          ========          ========`

See accompanying notes to consolidated financial statements

3

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CLARKSTON FINANCIAL CORPORATION
                                         CONSOLIDATED STATEMENT OF INCOME
                            Three Month Periods Ended March 31, 2002 and March 31, 2001
                                   (dollars in thousands, except per share data)
                                                    (unaudited)

`Three Months          Three Months
                                                                         Ended                 Ended
                                                                    March 31, 2002        March 31, 2001
                                                                    --------------        --------------

Interest Income
       Loans, including fees ..................................     $     692             $     577
       Securities..............................................           663                   465
       Federal Funds sold......................................            18                    62
                                                                    ---------             ---------
            Total interest income..............................         1,373                 1,104

Interest Expense
       Deposits................................................           620                   612
       Other...................................................             0                     0
                                                                    ---------             ---------
            Total interest expense.............................           620                   612

Net Interest Income............................................           753                   492

Provision  for loan losses.....................................            15                    17
                                                                    ---------             ---------

Net interest income
After provision for loan losses................................           738                   475

Noninterest income                                                                               75
     Gains (losses) on sale of securities......................            20                    21
     Other income..............................................            85                    54
                                                                    ---------             ---------
            Total noninterest income...........................           105                    75


Noninterest expense
     Salaries and benefits.....................................           343                   197
     Occupancy expense of premises.............................            63                    38
     Furniture and equipment expense...........................            46                    32
     Computer and data processing expenses.....................            60                    47
     Advertising and public relations..........................            19                    18
     Professional fees.........................................            42                    36
     Amortization of deposit premium
         and conversion cost...................................             8                     6
     Other expense.............................................            65                    10
                                                                    ---------             ---------
            Total noninterest expense..........................           646                   384
                                                                    ---------             ---------

Profit before federal income tax...............................           197                   166

Federal income tax.............................................            72                    52
                                                                    ---------             ---------

Net profit ....................................................     $     125             $     114
                                                                    =========             =========

Basic and diluted profit per share.............................     $     .12            $      .11
                                                                    =========            ==========`

See accompanying notes to consolidated financial statements

4

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CLARKSTON FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Three Month Periods Ended March 31, 2002 and March 31, 2001
(dollars in thousands)
(Unaudited)

`Three Months          Three Months
                                                                         Ended                 Ended
                                                                    March 31, 2002        March 31, 2001
                                                                    --------------        --------------

Net Profit as Reported.........................................       $     125             $      114

Other Comprehensive Income (Loss), Net of Tax:

       Change in unrealized gain / loss on securities
           available for sale..................................            (498)                    23
                                                                      ----------            ----------

Comprehensive Profit (Loss)....................................       $    (373)            $      137
                                                                      ==========            ==========`

See accompanying notes to consolidated financial statements

5

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CLARKSTON FINANCIAL CORPORATION
                             CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
                                         Three Months ended March 31, 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 three months
Ended March 31, 2002 (unaudited)..............                                    125                                    125

Decrease  in  fair  market  value  of  securities
available for sale............................             0           0            0               (498)               (498)
                                                    --------     -------      -------           ---------          ----------

Balance March 31, 2002........................      $  4,306     $ 4,306      $   213           $   (531)          $    8,294
                                                    ========     =======      =======           =========          ==========`

See accompanying notes to consolidated financial statements

6

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CLARKSTON FINANCIAL CORPORATION
                                       CONSOLIDATED STATEMENT OF CASH FLOWS
                               Three Months ended March 31, 2002 and March 31, 2001
                                              (dollars in thousands)
                                                    (unaudited)

`Three Months          Three Months
                                                                         Ended                 Ended
                                                                    March 31, 2002        March 31, 2001
                                                                    --------------        --------------


Net Cash Provided by Operating Activities:
    Net cash provided by operating activities................           $      40            $     235

Cash Flows from Investing Activities:
    Net increase in loans....................................              (1,203)              (1,630)
    Purchase of held-to-maturity securities..................                   0                    0
    Proceeds from maturities of held-to-maturity securities..                   0                    0
    Proceeds from sales of held-to-maturity securities.......                   0                5,306
    Purchase of available-for-sale securities................              (9,343)              (2,394)
    Proceeds from sales of available-for-sale securities.....               1,001                3,510
    Property and equipment expenditures......................                 (10)                (242)
                                                                        ---------            ---------
    Net cash provided by investing activities................              (9,555)               4,550

Cash Flows from Financing Activities:
    Increase in deposits.....................................               8,059                 (799)
                                                                        ---------            ---------

Net increase in cash and cash equivalents....................              (1,456)               3,986
Cash and cash equivalents at beginning of year...............               5,831                3,412
                                                                        ---------            ---------

Cash and cash equivalents at March 31, 2002 and 2001.........           $   4,375                7,398
                                                                        =========            =========`

See accompanying notes to consolidated financial statements

7

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CLARKSTON FINANCIAL CORPORATION
                                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 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  March  31,  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
                                 March 31, 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
                                                   ---------     ----------     ----------     ---------

  March 31, 2002 (Unaudited)
  --------------------------
         Taxable variable rate demand
             Municipal revenue bonds,
             Short term corporate
             Commercial paper, and bonds
             of government agencies...........     $ 45,369        $    267      $ (1,071)     $ 44,565
                                                   ========        ========      =========     ========`

## Held to
Maturity

`March 31, 2002 (Unaudited)
  --------------------------
         Taxable variable rate demand
             Municipal revenue bonds,
             Short term corporate
             Commercial paper, and bonds
             of government agencies...........     $  5,602        $      4      $    (93)     $  5,513
                                                   ========        ========      =========     ========`

Contractual maturities of
debt securities at March 31, 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................................               1,316                 1,311
      Due from 2007 to 2032................................              44,053                43,254
                                                                        -------               -------
                                                                        $45,369               $44,565
                                                                        =======               =======

                                                                             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...................................             5,602                   5,513
                                                                      -------                 -------
                                                                      $ 5,602                 $ 5,513
                                                                      =======                 =======`

(Continued)

9

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

NOTE 5 - LOANS

Loans are as follows (dollars in thousands):

`March 31,            December 31,
                                                                         2002                   2001
                                                                     ------------            ----------
                                                                   (unaudited)
       Commercial.............................................           $ 26,993              $ 25,299
       Mortgage...............................................              4,819                 5,441
       Consumer...............................................              3,846                 3,715
                                                                         --------              --------
                                                                           35,658                34,455
       Allowance for loan losses..............................                434                   419
                                                                         --------              --------
                                                                         $ 35,224              $ 34,036
                                                                         ========              ========`

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

`Three months             For the
                                                                         Ended              Year Ended
                                                                    March 31, 2002          December 31,
                                                                      (Unaudited)               2001
                                                                      -----------            ----------


       Balance at beginning of period.........................              $ 419              $    379
              Provision charged to operating expense..........                 15                    90
       Net loans (charge-offs) recoveries.....................                  0                  (50)
                                                                            -----              --------

       Balance at end of period...............................              $ 434              $    419
                                                                            =====              ========

       Allowance for loan losses as a percentage of
              loans at end of period..........................              1.22%                 1.21%
                                                                            =====              ========`

(Continued)

10

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

## NOTE 6 -
PREMISES AND EQUIPMENT - NET

`Accumulated      Carrying
                                                                     Cost      Depreciation       Value
                                                                     ----      ------------      -------

March 31, 2002 (unaudited)
--------------------------
     Building and improvements..............................       $   404        $    62        $  342
     Furniture and equipment................................           662            228           434
                                                                   -------        -------        ------
                                                                   $ 1,066        $   290        $  776
                                                                   =======        =======        ======

December 31, 2001
-----------------
     Building and improvements..............................       $   404        $    57        $  347
     Furniture and equipment................................           652            205           447
                                                                   -------        -------        ------
                                                                   $ 1,056        $   262        $  794
                                                                   =======        =======        ======`

## NOTE 7 - DEPOSITS

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

`March 31,            December 31,
                                                                         2002                   2001
                                                                     ------------            ----------

Demand deposit accounts.......................................            $  2,755             $  2,233
Money market accounts.........................................              21,340               17,291
Savings accounts..............................................               5,935                5,692
Certificates of Deposit.......................................              42,553               39,714
                                                                          --------             --------
                                                                          $ 72,583             $ 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 $7.8  million or 9.3% to $91.7  million at March 31, 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 $1.4
million or 24.1% to $4.4  million at March 31,  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  $7.7  million  or 18.1% to $50.2  million at March 31,  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 $1.2 million or 3.5% to $35.7  million at March 31, 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 March 31, 2002 was  $434,000,  representing  approximately  1.22% of
total loans outstanding, compared to $419,000 as of December 31, 2001.

As of  December 31,  2001, the Company had an accumulated  profit of $88,000 and as of March 31, 2002, the
accumulated  profit was $213,000.  The  accumulated  profit  continues to improve as the Bank has increased its net
interest and non-interest income while continuing to maintain low operating expenses.

12

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Results of Operations

The  Company's  net profit was $125,000 for the first  quarter of 2002  compared to net profit of $114,000
for the first  quarter  of 2001.  The Bank  began  operations  in 1999 and has earned a profit  every  month  since
January,  2000.  Net  profit  for the three  month  period  ended  March 31,  2002  included  a federal  income tax
provision of $72,000.

Interest  income for the first  quarter of 2002 was $1.37  million,  an  increase  of 24.5% from  interest
income of $1.1 for the first  quarter of 2001.  This  increase  resulted  primarily  from the increase in loans and
securities.  Interest  expense was $620,000  for the three  months  ended March 31, 2002,  an increase of 1.3% from
interest  expense of $612,000  for the three  months  ended March 31,  2002.  This  consisted  of interest  paid on
interest bearing deposits.

The Company had an  allowance  for loan losses of  approximately  1.22% of total loans at March 31,  2002.
The  provision  expense for loan loss for the three month  period ended March 31,  2002,  was  $15,000.  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 $646,000 for the first  quarter of 2002, a $262,000 (or 68.2%)  increase over the
first  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.  These  increases  are  consistent  with
management's plans to grow the balance sheet 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's  plan of  operation  for the  next  twelve  months  does  not  contemplate  the need to raise
additional  capital  during that period.  Management  believes that its current  capital and liquidity will provide
the Company with adequate  capital to support its expected  level of deposit and loan growth and to otherwise  meet
its cash and capital requirements for at least the next year.

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

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

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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 March 31,  2002,  to be signed on its
behalf by the undersigned, thereunto duly authorized.

| | CLARKSTON FINANCIAL CORPORATION/s/ David T. Harrison
David T. Harrison
President and Chief Executive Officer/s/ J. Grant Smith
J. Grant Smith
Chief Financial Officer
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

DATE:  May 15, 2002

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