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Oxford Bank Corp

OXFORD BANK CORPORATION ANNOUNCES SIX MONTH AND SECOND QUARTER 2025 OPERATING RESULTS

OXFORD, Mich. , Aug. 4, 2025 /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTC Bulletin Board: OXBC), the holding company for Oxford Bank ("the Bank"), today announced operating results for the second quarter ended June 30, 2025.

The Company's quarterly consolidated earnings for the three months ended June 30, 2025, were $2.78 million, or $1.13 per weighted average share, compared to $2.26 million, or $0.92 per weighted average share for the same period one year ago.  President and CEO, David Lamb, commented, "We are pleased with the performance during the quarter and year-to-date. We continue to see momentum for profitable growth throughout 2025 and beyond although subject to all kinds of potential external risks some too new to assess today.  Our business strategy has been very consistent over the years which is providing a people-oriented relationship that is supplemented by technology to constantly improve the client experience. Our core tactic is being able to serve our clients and prospective clients from the "unconventional" – start-up and distressed to providing ESOP financing to very successful conventional clients. We remain confident this strategy will continue to deliver consistent value to our stakeholders primarily shareholders, team and communities through continued solid short-term and long-term financial success for the Company."

Lamb continued, "Comparing to prior year, net income has grown due to increasing net interest income.  Net interest income is the lifeblood of community banks like Oxford and provides a stable and recurring driver of earnings going forward.  This growth in net interest income has come from the team's engagement in executing on our business model to provide a superior experience and providing leadership feedback on continuous improvement ideas."

Total Assets of the Company were $859.51 million as of June 30, 2025, compared to $823.87 million at March 31, 2025 and $821.23 million at June 30, 2024.  "The balance sheet has increased from the prior quarter end, driven by $24 million increase in deposits from the prior quarter-end.  This growth consists of a $12 million increase in client deposits, bolstered by $12 million in deposits from wholesale funding markets.  Wholesale funding utilization increased due to loan growth outpacing client deposit growth during the quarter.  The core of our deposit portfolio has continued to perform well and serves as our primary funding source.  The reliable, low-cost funding provided by our branch network and business clients functions as the foundation of our business model and is an important reason for our enviable net interest margin.  Liquidity remains strong between cash and readily marketable investments," reported CEO David Lamb.

Total loans and leases at June 30, 2025 were $635.01 million, compared to $622.51 million at March 31, 2025, or $595.32 million at June 30, 2024.  CEO Lamb noted, "Our lending activity remains strong without compromising our standards for credit underwriting, pricing discipline, or requirements for a full relationship which includes primary deposit account(s).  There have been additional lending opportunities available to us that we have passed on due to our disciplined commitment to full-relationship banking.  We are very pleased with our ability to grow the lending businesses without relenting on the cross-sale of depository relationships."

Total deposits were $721.36 million as of June 30, 2025, compared to $697.44 million at March 31, 2025 and $693.98 million at June 30, 2024. Overall Bank cost of funds increased to 1.30% year-to-date, as of June 30, 2025, from 1.27% for the first quarter of 2025, or 1.25% for full-year 2024.  The Bank's loan and deposit activity in the quarter resulted in Net Interest Margin ("NIM") expansion to 5.22% year-to-date, as of June 30, 2025, from 5.15% for first quarter of 2025.  This compares to 4.88% for full-year 2024.  "We continue to be pleased with the stickiness of our deposits and the strength of our client relationships.  This is the foundation of our low-cost funding mix and has allowed us to maintain margin despite operating in a rate environment where competition for deposits is very high.  While utilizing comparatively expensive wholesale funding has driven the increase in our overall cost of funds, facilitating loan growth in this manner has ensured we do not unnecessarily cannibalize our low-cost branch network deposits in pursuit of balance sheet expansion," continued Lamb.

The allowance for credit loss increased slightly, to $7.29 million at June 30, 2025, from $7.27 million at March 31, 2025.  Provisions for credit loss of $1.37 million this quarter were driven primarily by net charge-offs of $1.28 million.  Nearly all of these charge-offs were associated with a single loan relationship that was specifically reserved for during Q4 of 2024, which was transferred to Other Real Estate Owned ("OREO") during this quarter.  Lamb commented, "While non-accrual loans remain elevated compared to peers, we are confident that our exposures are properly supported by robust collateral coverage and/or government guarantee programs.  For example, 39% of non-accrual loans have SBA guarantees associated with them.  We expect the loan portfolio to continue to show only modest and isolated losses.  The drag, if any, on earnings performance is expected to be minor.  We have not seen the impact of tariffs yet but are monitoring very closely with our customers and prospective customers. The Bank has comparatively low levels of investment real estate and office exposure and a good mix of industry and geography (albeit southeast Michigan centered) that mitigates concentration risk.  We also actively utilize the SBA and other government guarantee programs like the Michigan Economic Development Corp. to mitigate weaknesses in transactions to allow us to continue to provide capital to the businesses within the communities where we live and work."

The Company's total shareholders' equity was $103.18 million as of June 30, 2025, representing book value per share of $41.70, compared to total shareholders' equity of $99.85 million, or $40.51 per share at March 31, 2025 and $90.16 million, or $36.72 per share at June 30, 2024.  The increase in year-over-year equity is mainly a reflection of the positive accretion of retained earnings.  The subsidiary Bank's Tier 1 capital totaled $101.63 million as of June 20, 2025, or 14.29% of risk-weighted assets compared to $98.53 million, or 13.99% of risk-weighted assets as of March 31, 2025, and $92.04 million, or 13.59% as of June 30, 2024.

Oxford Bank is a subsidiary of Oxford Bank Corporation, a registered holding company. It is the oldest commercial bank in Oakland County and operates seven full-service offices in Clarkston, Davison, Dryden, Lake Orion, Oakland Township, Ortonville, and Oxford, Michigan. The Bank also has Customer Experience Centers in Ann Arbor, Macomb and Rochester Hills, Michigan, with transactional services provided by Interactive Teller Machines only. In addition, Oxford Bank has business banking/commercial finance centers in Phoenix, AZ., Wixom, downtown Oxford, and Flint, Michigan.  The Bank has operated continuously under local ownership and management since it first opened for business in 1884. For more information about Oxford Bank and its complete line of financial services, please visit www.oxfordbank.bank.

Except for the historical information contained herein, the matters discussed in the Release may be deemed forward-looking statements that involve risk and uncertainties. Words or phrases "will likely result", "are expected to", "will continue", "is anticipated", "estimate", "project", or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Factors which could cause actual results to differ, include, but are not limited to, fluctuations in interest rates, changes in economic conditions of the Bank's market area, changes in policies by regulatory agencies, the acceptance of new products, the impact of competitive products and pricing and the other risks detailed from time to time in the Bank's and Corporation's reports. These forward-looking statements represent the Bank's judgment as of the date of this report. The Bank disclaims, however, any intent or obligation to update these forward-looking statements.

Oxford Bank Corporation

Consolidated Balance Sheet (Unaudited)

(Dollars in thousands except per share data)











June 30





2025

2024

ASSETS:





Cash and cash equivalents


$        51,851

$        59,854


Interest bearing time deposits in banks


750

3,985


Investment Securities - Available-for-Sale


116,964

119,616


Investment Securities - Held-to-Maturity


1,160

1,170


Loans and Leases


635,007

595,320



Less: Allowance for credit losses


(7,293)

(6,732)


Net loans and leases


627,714

588,588


Premises and equipment, net


8,618

8,402


Other real estate owned


7,267

-


Goodwill


7,000

7,000


Bank-owned life insurance


11,398

11,027


Equipment on operating leases, net


2,596

3,664


Accrued interest receivable and other assets


24,187

17,923



TOTAL ASSETS


$      859,505

$      821,229







LIABILITIES:





Deposits





Noninterest-bearing


$      275,179

$      267,714


Interest-bearing


446,176

426,267



Total deposits


721,355

693,981


Borrowings


15,925

25,762


Accrued interest payable, taxes and other liabilities


17,478

10,041



TOTAL LIABILITIES


754,758

729,784







SHAREHOLDERS' EQUITY





Common stock, no par value; 10,000,000 shares authorized;






2,474,361 and 2,455,341 shares issued and outstanding as of






June 30, 2025 and 2024, respectively


30,726

30,314


Retained Earnings


74,822

64,782


Accumulated other comprehensive income (loss), net of tax


(2,367)

(4,933)



Total Shareholders' Equity attributable to Parent


103,181

90,163


Noncontrolling Interest


1,566

1,282



TOTAL EQUITY


104,747

91,445









TOTAL LIABILITIES & EQUITY


$      859,505

$      821,229









Book value per share


$41.70

$36.72

 

Oxford Bank Corporation

Consolidated Statement of Income (Unaudited)

(Dollars in thousands except per share data)

















Quarter to Date


Year to Date







June 30


June 30







2025

2024


2025

2024


INTEREST INCOME:









Loans and Leases, including fees


12,010

10,395


23,280

21,106



Investment securities:










Taxable


779

698


1,496

1,282




Tax-exempt


12

14


25

28



Interest bearing balances at banks


345

1,025


796

2,079




Total Interest Income


13,146

12,132


25,597

24,495













INTEREST EXPENSE:









Interest on deposits


2,337

2,061


4,592

3,999



Interest on borrowed funds


194

257


333

399




Total Interest Expense


2,531

2,318


4,925

4,398













Net Interest Income


10,615

9,814


20,672

20,097



Provision for credit losses


1,369

1,257


997

1,214




Net Interest Income After Provision for Credit Losses


9,246

8,557


19,675

18,883













NON-INTEREST INCOME:









Service charges - deposits


153

187


300

342



ATM fee income


179

177


333

338



Gain on sale of loans


313

52


361

141



Business banking income


541

651


1,026

1,026



Commercial finance fee income


210

759


639

1,096



Operating lease revenue


169

168


337

318



Income on bank owned life insurance


94

89


186

177



Gain (loss) on disposal of Fixed Assets


255

-


255

-



Other



335

187


581

482




Total Noninterest Income


2,249

2,270


4,018

3,920













NON-INTEREST EXPENSE:









Salaries and employee benefits


4,620

4,740


9,328

9,317



Occupancy and equipment


359

371


1,159

913



Data Processing


455

1,157


1,487

2,219



Legal and other professional fees


373

280


807

534



Other loan expense


425

329


595

532



Other



1,430

1,171


2,586

2,059




Total Noninterest Expense


7,662

8,048


15,962

15,574













Income Before Income Taxes


3,833

2,779


7,731

7,229



Income tax expense


733

689


1,468

1,549


Net Income Before Noncontrolling Interest


3,100

2,090


6,263

5,680



Net income attributable to Noncontrolling Interest


318

(168)


657

144


Net Income attributable to Parent


$        2,782

$         2,258


$        5,606

$        5,536













Earnings per Weighted Average Share - Basic


$          1.13

$           0.92


$          2.27

$          2.25













 

Oxford Bank Corporation

Consolidated Financial Summary and Selected Ratios (Unaudited)

(Dollars in thousands except per share data)
















Year to Date







June 30


Change







2025

2024


Amount

Percentage



Income Statement











Interest income


$             25,597

$             24,495


$         1,102

4.5 %





Interest expense


4,925

4,398


527

12.0 %




Net interest income


20,672

20,097


575

2.9 %





Provision for loan loss


997

1,214


(217)

(17.9 %)





Noninterest income


4,018

3,920


98

2.5 %





Noninterest expense


15,962

15,574


388

2.5 %




Income before income taxes


7,731

7,229


502

6.9 %





Income tax expense


1,468

1,549


(81)

(5.2 %)





Net income attributable to Noncontrolling Interest


657

144


513

356.3 %




Net Income


$               5,606

$               5,536


$            583

10.5 %














Balance Sheet Data










Total assets


859,505

821,229


38,276

4.7 %




Earning assets


753,881

720,091


33,790

4.7 %




Total loans


635,007

595,320


39,687

6.7 %




Allowance for credit losses


7,293

6,732


561

8.3 %




Total deposits


721,355

693,981


27,374

3.9 %




Other borrowings


15,925

25,762


(9,837)

(38.2 %)




Liability for unfunded commitments


534

241


293

121.6 %




Total equity


104,747

91,445


13,302

14.5 %














Asset Quality










Other real estate owned


7,267

-


7,267

n/a




Net charge-offs (recoveries)


2,082

674


1,408

208.9 %




Non-accrual loans


10,568

9,145


1,423

15.6 %




Nonperforming assets


17,835

9,145


8,690

95.0 %




Non-accrual loans / total loans


1.66 %

1.54 %


0.13 %

8.3 %




Allowance for loan credit loss / total loans


1.15 %

1.13 %


0.02 %

1.6 %




Allowance for loan credit loss / non-accrual loans


69.01 %

73.61 %


(4.60 %)

(6.3 %)














Performance Measurements










Bank net interest margin (TE)


5.22 %

4.70 %


0.52 %

11.1 %




Return on average assets (annualized)


1.35 %

1.28 %


0.07 %

5.2 %




Return on average equity (annualized)


11.20 %

12.64 %


(1.44 %)

(11.4 %)




Equity / Assets


12.19 %

11.14 %


1.05 %

9.4 %




Loans / Deposits


88.0 %

85.8 %


2.2 %

2.6 %




Book value per share


$41.70

$36.72


$           4.98

13.6 %




Earnings per weighted average share - basic


$                 2.27

$                 2.25


$           0.02

0.8 %




Weighted average shares outstanding


2,466,607

2,455,341


11,266

0.5 %














 

Contact:

David P. Lamb, Chairman, President & CEO

Phone:

(248) 628-2533

Fax:

(248) 969-7230

 

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SOURCE Oxford Bank Corporation