Contacts:

• Clarkston Financial Corporation — Grant Smith, President & COO – P:248 922-6945

• Marcotte Financial Relations — Mike Marcotte – P:248 656-3873

Clarkston Financial Corp.
Reports Q2/ 6-Month Results For Immediate Release

        CLARKSTON, Mich., July 27, 2006 — Clarkston Financial Corporation (OTCBB: CKSB), the holding company for Clarkston State Bank and Huron Valley State Bank, reported higher assets, loans and deposits, but a net loss for the second quarter and first half of 2006, chiefly from higher loan-loss provisioning at Clarkston State Bank and operating costs at start-up subsidiary Huron Valley State Bank, Edwin L. Adler, Board Chairman, and J. Grant Smith, President and COO, jointly announced today.

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

Operating Results

        The net loss for the second quarter of 2006 was $198,000, equivalent to $0.16 per diluted share. The net loss for the first half of 2006 was $552,000, equivalent to $0.44 per diluted share. A year ago, the Corporation reported net income of $116,000, or $0.11 per diluted share, for the second quarter, and net income of $295,000, or $0.27 per diluted share, for the first half. The loan-loss provision for 2006‘s second quarter was $534,000 and $1,366,000 for the first half. These provisions were $260,000 and $355,000, respectively, for the second quarter and first half of 2005.

        “We have nearly completed a comprehensive review of our loan portfolios. We are still working-out a small number of commercial loans. However, we are working hard to address our credit quality issues and credit policy procedures and controls. We still have some more work to do on our credit-administration-restructuring plan, but we expect to have it fully implemented by the end of the third quarter. I’m confident that, with the changes we have made, we now have the appropriate people and systems in place. Going forward, we are principally focused on executing our business plan and returning the company to profitability. We expect results for the third quarter and second half to be aided by loan recoveries,” Mr. Smith said.

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Clarkston Financial Corp.
Q2/6-month 2006 Results
Page 2

    Mr.        Adler added, “We believe in our people and their ability to return CSB to profitability and to restore shareholder confidence.”

        Safe Harbor. This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), which involve significant risks and uncertainties. Actual results may differ materially from the results discussed in the forward-looking statements. Factors that may cause such a difference include: changes in interest rates and interest-rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior and their ability to repay loans; changes in the national and local economy; and other factors included in the Corporation’s filings with the Securities and Exchange Commission, available via EDGAR. The Corporation assumes no responsibility to update forward-looking statements.

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CLARKSTON FINANCIAL CORP
Historical Income Stmt Data Unaduited
000's Omitted

	Three Months Ended 06/30/06			Three Months Ended 03/31/06			Three Months Ended 12/31/05			Three Months Ended 09/30/05			Three Months Ended 06/30/05			Six Months Ended 06/30/06			Six Months Ended 06/30/05
Total Interest Income	$	3,320		$	3,016		$	2,985		$	2,830		$	2,699		$	6,336		$	5,199
Interest Expense		1,660			1,467			1,347			1,302			1,170			3,127			2,189
Net Interest Income		1,660			1,549			1,638			1,528			1,529			3,209			3,010
Provision for Loan Losses		534			832			104			908			260			1,366			355
Security Gains		0			3			-2			0			0			3			1
Gain on loan sales		12			22			8			34			28			34			75
Service fees on loan and deposit accounts		154			200			157			175			221			354			412
Other Income		0			2			-24			1			4			2			9
Total Other Income		166			227			139			210			253			393			496
Salary & Benefit Expense		839			791			728			692			783			1,630			1,527
Occupancy Expense		280			254			256			209			201			534			384
Other Expense		543			488			558			648			412			1,031			836
Total Other Expense		1,662			1,533			1,542			1,549			1,396			3,195			2,747
EBIT		-370			-589			132			-719			126			-959			405
Tax		-113			-167			113			-242			10			-280			110
Minority Interest		59			68			140			0			0			127			0
Net Income		-198			-354			159			-477			116			-552			295
Reported EPS (diluted)	-$	0.16		-$	0.28		$	0.09		-$	0.38		$	0.11		-$	0.44		$	0.27
Dividends Per Share	$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00
Selected Financial Ratios:
Total Risk Based Capital		13.09	%		14.28	%		14.82	%		15.19	%		12.82	%		13.09	%		12.82	%
Return on Average Assets		-0.40	%		-0.72	%		0.33	%		-1.02	%		0.27	%		-1.09	%		0.67	%
Return on Average Equity		-5.28	%		-9.35	%		4.18	%		-12.44	%		3.78	%		-14.89	%		9.58	%
Net Interest Margin		3.46	%		3.27	%		3.55	%		3.36	%		3.66	%		3.30	%		3.56	%
Average Assets		199,429			197,071			191,921			186,933			173,133			201,786			175,932
Net charge-offs ($)		1,092			644			53			535			117			1,736			129
Gross charge-offs ($)		1,115			651			55			535			117			1,766			130

CLARKSTON FINANCIAL CORP
Historical Financial Data Unaudited
000's Omitted

	6/30/06		3/31/06		12/31/05
Total Assets	$	211,221	$	201,887	$	195,576
Total Loans, Net of Unearn. Disc		140,601		139,319		133,544
Loans HFS		217		294		314
Loan Loss Reserve		1,560		2,118		1,930
Non-accrual Loans		916		1,142		1,066
Renegotiated Loans		0		0		0
Loans 90 days + Still Accruing		491		2,978		1,413
Total Non-performing Loans		1,407		4,120		2,479
Total Securities		48,009		49,948		48,982
Premises/Furniture & Fixtures		4,824		4,882		3,911
Repossessed Assets		182		186		205
Noninterest-bearing Deposits		25,656		22,491		23,633
Interest bearing Deposits		151,891		141,305		137,699
Total Deposits		177,547		163,796		161,332
CD's>$100K		48,230		40,006		37,668
Trust Preferred		4,000		4,000		4,000
Common Equity		13,984		14,667		15,131
Common Shares Outstanding at End of Period		1,246		1,246		1,246
Goodwill/Intangibles		0		0		0
Total borrowings		10,200		10,200		10,200