OXFORD BANK CORPORATION ANNOUNCES FIRST QUARTER 2026 OPERATING RESULTS

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Rhea-AI Summary

Oxford Bank Corporation (OTC:OXBC) reported first quarter 2026 net income of $1.53 million, or $0.62 per share, down from $2.82 million, or $1.15 per share, a year earlier. Results reflect a $1.01 million credit loss provision and deposit normalization, while loans grew to $701.7 million and net interest income rose 11.1%. Book value per share increased to $44.85 and Tier 1 capital reached 13.29%.

Positive

Net interest income up 11.1% year-over-year to $11.18 million
Total loans increased 12.7% year-over-year to $701.7 million
Total deposits grew 6.2% year-over-year to $740.6 million
Book value per share rose 10.7% year-over-year to $44.85
Allowance for credit losses up 27.2% to $9.25 million
Equity-to-assets ratio improved to 12.52% from 12.34%

Negative

Net income declined 45.9% year-over-year to $1.53 million
Earnings per share fell from $1.15 to $0.62
Provision for credit losses swung to $1.01 million from a recovery
Noninterest expense increased 12.4% year-over-year to $9.33 million
Net interest margin declined to 4.79% from 5.15%
Nonperforming assets rose 46.8% year-over-year to $20.37 million

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05/11/2026 - 01:30 PM

OXFORD, Mich., May 11, 2026 /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTC Bulletin Board: OXBC), the holding company for Oxford Bank ("the Bank"), today announced operating results for the first quarter ended March 31, 2026.

The Company reported consolidated net income of $1.53 million, or $0.62 per weighted average share, for the first quarter of 2026, compared to $2.82 million, or $1.15 per share, for the same period one year ago and $2.30 million, or $0.93 per share, in the fourth quarter of 2025.

Chairman, President and CEO David Lamb commented, "First quarter earnings fell short of our team's expectations; however, two quarter‑specific factors meaningfully affected reported results and masked continued underlying strength in the Bank's core performance. Credit‑related reserve actions reduced quarterly earnings by approximately $1.5 million, and the expected normalization of balances from a large deposit relationship drove a decline in total deposits and average earning assets. Importantly, neither factor reflects a deterioration in our underlying franchise."

Core Earnings, Credit Quality, and Lending Activity

"From an operating standpoint, our lending businesses produced a very strong quarter," Lamb continued. "Oxford Commercial Finance posted its strongest production quarter since inception four years ago, benefiting from attractive risk‑adjusted yields that continue to support our net interest margin. Conventional commercial lending activity also exceeded expectations, as teams converted strong pipelines into new client relationships while maintaining discipline around underwriting, pricing, and deposit cross‑sale requirements."

Net interest income for the quarter increased $1.12 million, or 11%, compared to the first quarter of 2025, reflecting loan growth and favorable asset yields. Net interest margin was 4.79% for the quarter, down from 5.23% for full‑year 2025, driven primarily by funding mix changes associated with balance sheet normalization and loan growth.

Provision for credit losses totaled $1.01 million during the quarter. This increase was driven primarily by a reserve adjustment on a single collateral‑dependent construction loan. "There were no new non‑performing loans during the quarter, and early‑stage delinquencies remain low," Lamb noted. "The number of non‑performing assets remains small, and we do not view this as the beginning of a broader trend. Our experienced Managed Asset team continues to actively manage these assets with a focus on loss mitigation."

Deposit Trends, Liquidity, and Funding

Total assets were $902.1 million at March 31, 2026, compared to $1.09 billion at December 31, 2025, reflecting the anticipated reduction of balances associated with one large deposit client previously disclosed in prior quarters. As a result, the Bank returned to a more normalized level of cash and equivalents.

Total deposits declined to $740.6 million at quarter‑end, compared to $953.3 million at December 31, 2025. Bank cost of funds increased to 1.47% for the quarter, compared to 1.31% for full‑year 2025, reflecting continued loan growth funded through a combination of wholesale borrowings and newer, higher‑cost deposit channels.

While retail branch deposits remain the foundation of the Bank's low‑cost funding base, recent growth in earning assets required incremental use of alternative funding sources. During the quarter, the Bank also made progress expanding its Municipal Banking platform, which now represents approximately $50 million in balances.

"The normalization of the large deposit relationship was expected and well‑managed," Lamb said. "I'm proud of how our teams coordinated across the Bank to ensure a smooth transition for both the client and the institution. This speaks well for the team's ability to respond to changes in the environment and with clients. Liquidity remains strong, supported by cash positions, readily marketable investments, and available contingent funding sources."

Expense Trends and Operating Leverage

Noninterest expense increased compared to the prior year period, reflecting continued investments in the team, technology, and treasury management infrastructure to support growth initiatives. "While expenses increased, net interest income growth continues to outpace noninterest expense growth on a trailing basis, which is an important indicator that we are capturing operating leverage as the franchise scales," Lamb said.

Capital and Shareholder Value

Total shareholders' equity increased to $111.1 million at March 31, 2026, representing book value per share of $44.85, compared to $44.31 at December 31, 2025. The increase reflects positive accretion from retained earnings.

The Bank's Tier 1 capital ratio was 13.29% at quarter‑end, remaining comfortably above regulatory well‑capitalized thresholds despite balance sheet volatility related to deposit normalization.

Outlook

Lamb concluded "While we are not satisfied with the headline earnings result this quarter, the fundamental drivers of our business—relationship‑based lending, disciplined credit practices, and a strong capital position—remain intact. As temporary balance sheet dynamics continue to normalize and credit‑related impacts subside, we remain confident that earnings performance will move back toward the levels our team expects of itself."

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 operates 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 and commercial finance centers in Phoenix, AZ, Wixom, downtown Oxford, and Flint, Michigan. Founded in 1884, the Bank has operated continuously under local ownership and management for more than 140 years. For more information, visit www.oxfordbank.bank.

Except for historical information contained herein, certain matters discussed may be deemed forward‑looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially, including changes in interest rates, economic conditions, regulatory policies, competitive factors, and other risks described in the Company's filings. The Company undertakes no obligation to update forward‑looking statements.

Oxford Bank Corporation
Consolidated Balance Sheet (Unaudited)
(Dollars in thousands except per share data)

			March 31
			2026	2025
ASSETS:
	Cash and cash equivalents		$ 34,622	$ 42,955
	Interest bearing time deposits in banks		496	750
	Investment Securities - Available-for-Sale		121,012	115,768
	Investment Securities - Held-to-Maturity		585	1,160
	Loans and Leases		701,706	622,505
		Less: Allowance for credit losses	(9,249)	(7,272)
	Net loans and leases		692,457	615,233
	Premises and equipment, net		9,027	9,433
	Other real estate owned, net		5,365	-
	Goodwill		7,000	7,000
	Bank-owned life insurance		11,689	11,304
	Equipment on operating leases, net		4,198	4,093
	Accrued interest receivable and other assets		15,624	16,175
		TOTAL ASSETS	$ 902,075	$ 823,871

LIABILITIES:
	Deposits
	Noninterest-bearing		$ 325,455	$ 286,430
	Interest-bearing		415,115	411,013
		Total deposits	740,570	697,443
	Borrowings		39,842	15,787
	Accrued interest payable, taxes and other liabilities		8,728	8,959
		TOTAL LIABILITIES	789,140	722,189

SHAREHOLDERS' EQUITY
	Common stock, no par value; 10,000,000 shares authorized;
		2,476,160 and 2,465,056 shares issued and outstanding as of
		March 31, 2026 and 2025, respectively	30,996	30,558
	Retained Earnings		81,792	72,041
	Accumulated other comprehensive income (loss), net of tax		(1,727)	(2,751)
		Total Shareholders' Equity attributable to Parent	111,061	99,848
	Noncontrolling Interest		1,873	1,834
		TOTAL EQUITY	112,934	101,682

		TOTAL LIABILITIES & EQUITY	$ 902,074	$ 823,871
			-	-
		*Book value per share*	$44.85	$40.51

Oxford Bank Corporation
Consolidated Statement of Income (Unaudited)
(Dollars in thousands except per share data)

			Quarter to Date		Year to Date
			March 31		March 31
			2026	2025	2026	2025
INTEREST INCOME:
	Loans and Leases, including fees		12,434	11,270	12,434	11,270
	Investment securities:
		Taxable	923	717	923	717
		Tax-exempt	14	13	14	13
	Interest bearing balances at banks		1,050	451	1,050	451
		Total Interest Income	14,421	12,451	14,421	12,451

INTEREST EXPENSE:
	Interest on deposits		3,106	2,255	3,106	2,255
	Interest on borrowed funds		137	139	137	139
		Total Interest Expense	3,243	2,394	3,243	2,394

Net Interest Income			11,178	10,057	11,178	10,057
	Provision for credit losses		1,005	(372)	1,005	(372)
		Net Interest Income After Provision for Credit Losses	10,173	10,429	10,173	10,429

NON-INTEREST INCOME:
	Service charges - deposits		332	147	332	147
	ATM fee income		156	154	156	154
	Gain on sale of loans		45	48	45	48
	Business banking income		359	485	359	485
	Commercial finance fee income		326	429	326	429
	Operating lease revenue		242	168	242	168
	Income on bank owned life insurance		97	92	97	92
	Gain on disposal of fixed assets		-	-	-	-
	Other		173	246	173	246
		Total Noninterest Income	1,730	1,769	1,730	1,769

NON-INTEREST EXPENSE:
	Salaries and employee benefits		5,494	4,708	5,494	4,708
	Occupancy and equipment		746	800	746	800
	Data Processing and Software		1,223	1,032	1,223	1,032
	Legal and other professional fees		319	434	319	434
	Other loan expense		331	170	331	170
	Loss on sale of OREO		33	-	33	-
	Writedown on OREO		-	-	-	-
	Other		1,186	1,156	1,186	1,156
		Total Noninterest Expense	9,332	8,300	9,332	8,300

Income Before Income Taxes			2,571	3,898	2,571	3,898
	Income tax expense		582	735	582	735
Net Income Before Noncontrolling Interest			1,989	3,163	1,989	3,163
	Net income attributable to Noncontrolling Interest		460	339	460	339
Net Income attributable to Parent			$ 1,529	$ 2,824	$ 1,529	$ 2,824

*Earnings per Weighted Average Share - Basic*			$ 0.62	$ 1.15	$ 0.62	$ 1.15

Oxford Bank Corporation
Consolidated Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)

			Year to Date
			March 31		Change
			2026	2025	Amount	Percentage
Income Statement
		Interest income	$ 14,421	$ 12,451	$ 1,970	15.8 %
		Interest expense	3,243	2,394	849	35.5 %
	Net interest income		11,178	10,057	1,121	11.1 %
		Provision for loan loss	1,005	(372)	1,377	(370.2 %)
		Noninterest income	1,730	1,769	(39)	(2.2 %)
		Noninterest expense	9,332	8,300	1,032	12.4 %
	Income before income taxes		2,571	3,898	(1,327)	(34.0 %)
		Income tax expense	582	735	(153)	(20.8 %)
		Net income attributable to Noncontrolling Interest	460	339	121	35.7 %
	*Net Income*		$ 1,529	$ 2,824	$ (1,295)	-45.9 %

Balance Sheet Data
	Total assets		902,075	823,871	78,204	9.5 %
	Earning assets		823,799	740,183	83,616	11.3 %
	Total loans		701,706	622,505	79,201	12.7 %
	Allowance for credit losses		9,249	7,272	1,977	27.2 %
	Total deposits		740,570	697,443	43,127	6.2 %
	Other borrowings		39,842	15,787	24,055	152.4 %
	Liability for unfunded commitments		473	463	10	2.2 %
	Total equity		112,934	101,682	11,252	11.1 %

Asset Quality
	Other real estate owned, net		5,365	-	5,365	n/a
	Net charge-offs (recoveries)		(78)	804	(882)	(109.7 %)
	Non-accrual loans		15,004	13,878	1,126	8.1 %
	Nonperforming assets		20,369	13,878	6,491	46.8 %
	Non-accrual loans / total loans		2.14 %	2.23 %	(0.09 %)	(4.1 %)
	Allowance for loan credit loss / total loans		1.32 %	1.17 %	0.15 %	12.8 %
	Allowance for loan credit loss / non-accrual loans		61.64 %	52.40 %	9.24 %	17.6 %

Performance Measurements
	Bank net interest margin (TE)		4.79 %	5.15 %	(0.36 %)	(7.0 %)
	Return on average assets (annualized)		0.63 %	1.28 %	(0.66 %)	(51.2 %)
	Return on average equity (annualized)		5.50 %	11.49 %	(5.99 %)	(52.1 %)
	Equity / Assets		12.52 %	12.34 %	0.18 %	1.4 %
	Loans / Deposits		94.8 %	89.3 %	5.5 %	6.2 %
	Book value per share		$44.85	$40.51	$ 4.35	10.7 %
	Earnings per weighted average share - basic		$ 0.62	$ 1.15	$ (0.53)	(46.1 %)
	Weighted average shares outstanding		2,476,160	2,465,056	11,104	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

FAQ

How did Oxford Bank Corporation (OXBC) perform in Q1 2026?

Oxford Bank Corporation reported Q1 2026 net income of $1.53 million, or $0.62 per share. According to Oxford Bank Corporation, earnings decreased from $2.82 million a year earlier, mainly due to higher credit loss provisions, while loans and earning assets continued to grow.

Why did Oxford Bank Corporation (OXBC) earnings decline year-over-year in Q1 2026?

Q1 2026 earnings declined primarily because the provision for credit losses increased to $1.01 million from a negative $0.37 million. According to Oxford Bank Corporation, this was largely tied to a reserve adjustment on a single collateral-dependent construction loan rather than broad credit deterioration.

What were Oxford Bank Corporation (OXBC) key balance sheet trends as of March 31, 2026?

As of March 31, 2026, total assets were $902.1 million and deposits were $740.6 million. According to Oxford Bank Corporation, loans reached $701.7 million, while equity rose to $112.9 million, with book value per share increasing to $44.85 year-over-year.

How did Oxford Bank Corporation’s (OXBC) net interest margin and net interest income change in Q1 2026?

Net interest income increased 11.1% year-over-year to $11.18 million in Q1 2026. According to Oxford Bank Corporation, net interest margin was 4.79%, down from 5.15% a year earlier, reflecting funding mix changes and loan growth impacts on overall funding costs.

What is Oxford Bank Corporation (OXBC) saying about credit quality and nonperforming assets in Q1 2026?

Oxford Bank Corporation reported nonperforming assets of $20.37 million and non-accrual loans of $15.00 million at March 31, 2026. According to Oxford Bank Corporation, there were no new nonperforming loans in the quarter and early-stage delinquencies remain low, with active loss-mitigation efforts ongoing.

How strong is Oxford Bank Corporation (OXBC) capital position after Q1 2026 results?

Oxford Bank Corporation reported total shareholders’ equity of $111.1 million and book value per share of $44.85 at March 31, 2026. According to Oxford Bank Corporation, the bank’s Tier 1 capital ratio was 13.29%, remaining comfortably above regulatory well-capitalized thresholds.

What outlook did Oxford Bank Corporation (OXBC) provide following its Q1 2026 earnings?

Management indicated it is not satisfied with headline Q1 2026 earnings but remains confident in core business drivers. According to Oxford Bank Corporation, as balance sheet dynamics normalize and credit-related impacts ease, earnings performance is expected to move back toward internal targets.