OXFORD BANK CORPORATION ANNOUNCES SECOND QUARTER 2026 OPERATING RESULTS

Rhea-AI Summary

Oxford Bank Corporation (OTCQX: OXBC) reported second quarter 2026 net income attributable to the parent of $2.71 million, or $1.09 per share, versus $2.78 million ($1.13 per share) a year earlier and $1.53 million ($0.62 per share) in first quarter 2026. Net interest income rose to $11.63 million, up 10% year over year and 4% sequentially, supported by average earning asset yields of 7.15% in June and a year‑to‑date net interest margin of 4.97%.

Total assets reached $930.5 million and deposits $769.8 million at June 30, 2026, with loans and leases at $722.9 million, including record Oxford Commercial Finance balances of $147 million. Provision for credit losses was $0.24 million with net recoveries of about $0.13 million. Noninterest expense increased to $9.82 million for the quarter, while noninterest income declined to $1.88 million. Shareholders’ equity rose to $113.5 million, or book value of $45.58 per share, and the Bank’s Tier 1 capital ratio was 13.19%.

Positive

• Net interest income up 10.4% year-to-date to $22.8 million
• Loans and leases up 13.8% year-over-year to $722.9 million
• Deposits up 6.7% year-over-year to $769.8 million
• Book value per share increased to $45.58 from $41.70
• Net charge-offs turned to net recoveries of $208 thousand year-to-date
• Tier 1 capital ratio of 13.19% supports growth capacity

Negative

• Net income down 24.4% year-to-date to $4.24 million
• Return on average assets declined to 0.89% from 1.35%
• Return on average equity fell to 7.57% from 11.20%
• Noninterest expense up 20.0% year-to-date to $19.15 million
• Noninterest income down 10.2% year-to-date to $3.61 million
• Nonperforming assets up 32.4% year-over-year to $23.61 million

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

OXFORD, Mich., Aug. 3, 2026 /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTCQX: OXBC), the holding company for Oxford Bank ("the Bank"), today announced operating results for the second quarter ended June 30, 2026.

The Company reported consolidated net income of $2.71 million, or $1.09 per weighted average share, for the second quarter of 2026, compared to $2.78 million, or $1.13 per share, for the same period one year ago and $1.53 million, or $0.62 per share, in the first quarter of 2026.

Chairman, President and CEO David Lamb commented, "Balance sheet trends during the second quarter reflect the normalized growth expectations for our business. Deposits increased $29 million and loans grew $21 million during the quarter, reflecting continued momentum across our Company. This growth is driven by our team's ability to build deep client relationships that foster long-term loyalty and attract higher-value banking relationships. The strength of the Oxford Bank brand continues to support successful expansion into attractive growth niches, including municipal banking and small business lending."

Core Earnings, Credit Quality, and Lending Activity

"From an operating standpoint, our lending businesses produced another exceptional quarter," Lamb continued. "Oxford Commercial Finance loans and leases reached a record $147 million at June 30, 2026, demonstrating continued demand for the business line's specialized financing solutions. Conventional commercial lending originations also performed well as teams converted strong pipelines into new client relationships while maintaining discipline around underwriting, pricing, and deposit relationship requirements. Growth in conventional commercial balances was moderated by the timing of several planned relationship exits and loan payoffs."

"Importantly, earning asset yields continued to increase at a pace that exceeded funding cost pressures. Average earning asset yields expanded to 7.15% during June compared with 6.93% during the prior quarter, supporting margin expansion and overall profitability."

Net interest income for the quarter increased $1.02 million, or 10%, compared to the same quarter in 2025 and increased $0.46 million, or 4%, from the first quarter of 2026. Net interest margin expanded to 4.97% year-to-date, compared with 4.79% in the first quarter of 2026, reflecting improving earning asset yields and continued balance sheet optimization. The benefit of higher asset yields more than offset modest increases in funding costs during the period.

Provision for credit losses totaled $0.24 million during the quarter, reflecting specific reserve allocations associated with certain nonperforming credits. Net recoveries of approximately $0.13 million partially offset the provision expense.

"Our Managed Asset team continues to perform exceptionally well," Lamb noted. "During the first six months of 2026, the team recovered approximately $232 thousand of previously charged-off balances, highlighting both the quality of our workout process and the value of our collateral management efforts. While a small number of nonperforming credits continue to require active management, we remain encouraged by both our collection results and the progress toward resolution."

Deposit Trends, Liquidity, and Funding

Total assets increased to $930.5 million at June 30, 2026, compared to $902.1 million at March 31, 2026, reflecting strong deposit growth and continued expansion of earning assets. Total deposits increased to $769.8 million at quarter-end, compared to $740.6 million at March 31, 2026.

Bank cost of funds increased modestly to 1.49% year-to-date, compared with 1.47% during the first quarter and 1.31% for full-year 2025. Retail branch deposits remain the foundation of the Bank's low-cost funding base, and the cost of these deposits has remained stable. Recent growth has been supplemented through higher-cost funding channels that now represent a larger proportion of the overall funding mix. The Bank's Municipal Banking platform continued to gain momentum during the quarter, growing to approximately $65 million in deposits at June 30, 2026.

"As the Bank continues to expand its earning asset base through disciplined lending, we anticipate funding costs will continue to increase at a modest pace," Lamb said. "In many of our core markets, Oxford Bank already maintains meaningful deposit market share, which naturally limits the pace of growth available through traditional retail channels alone. As a result, future funding growth will increasingly be supported by specialty deposit verticals, municipal banking relationships, and other strategic funding channels. Liquidity remains strong and continues to provide ample support for future growth opportunities."

Expense Trends and Operating Leverage

Noninterest expense increased compared to the prior-year period, reflecting continued investments in team, technology, treasury management infrastructure, and costs associated with managing and resolving certain distressed assets. During the quarter, the Bank incurred property taxes, carrying costs, and other expenditures related to foreclosed real estate and nonperforming assets.

"The Managed Asset team made meaningful progress during the quarter toward resolution of our largest foreclosed property exposure," Lamb said. "While these expenses negatively affect reported efficiency metrics in the short term, management believes the actions being taken are necessary to maximize recovery and reduce long-term risk exposure. Successfully resolving these assets should allow more of our expanding net interest income to flow through to shareholder earnings in future periods."

Capital and Shareholder Value

Total shareholders' equity increased to $113.5 million at June 30, 2026, representing book value per share of $45.58, compared to $44.85 at March 31, 2026. The increase reflects continued earnings generation and growth in retained capital.

The Bank's Tier 1 capital ratio was 13.19% at quarter-end and remained comfortably above regulatory well-capitalized thresholds, reflecting the strength of the balance sheet and providing capacity to support continued growth. We are actively working on capital management as current levels are too high.

Outlook

Lamb concluded, "Our second quarter results demonstrate the underlying earnings power of the franchise and the resilience of our relationship-based business model. Loan and deposit growth remained strong, earning asset yields improved, and net income returned to a more normalized level following first-quarter credit-related impacts."

"While work remains to resolve a small number of legacy problem assets, we remain confident in our ability to continue generating profitable growth, expanding shareholder value, and delivering long-term results consistent with the expectations we have established for the organization. Our team remains focused on deepening client relationships, maintaining disciplined credit standards, and building a stronger franchise for our shareholders, customers, employees, and communities."

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.

Contact:
David P. Lamb, Chairman, President & CEO
Phone: (248) 628-2533
Fax: (248) 969-7230

 

Oxford Bank Corporation
Consolidated Balance Sheet (Unaudited)
(Dollars in thousands except per share data)
				June 30
				2026		2025
ASSETS:
	Cash and cash equivalents			$           39,008		$        51,851
	Interest bearing time deposits in banks			496		750
	Investment Securities - Available-for-Sale			120,512		116,964
	Investment Securities - Held-to-Maturity			585		1,160
	Loans and Leases			722,911		635,007
		Less: Allowance for credit losses		(9,657)		(7,293)
	Net loans and leases			713,254		627,714
	Premises and equipment, net			9,101		8,618
	Other real estate owned, net			7,282		7,267
	Goodwill			7,000		7,000
	Bank-owned life insurance			11,788		11,398
	Equipment on operating leases, net			4,091		2,596
	Accrued interest receivable and other assets			17,415		24,187
		TOTAL ASSETS		$         930,532		$      859,505
LIABILITIES:
	Deposits
	Noninterest-bearing			$         273,602		$      275,179
	Interest-bearing			496,230		446,176
		Total deposits		769,832		721,355
	Borrowings			37,551		15,925
	Accrued interest payable, taxes and other liabilities			8,079		17,478
		TOTAL LIABILITIES		815,462		754,758
SHAREHOLDERS' EQUITY
	Common stock, no par value; 10,000,000 shares authorized;
		2,490,027 and 2,474,361 shares issued and outstanding as of
		June 30, 2026 and 2025, respectively		31,110		30,726
	Retained Earnings			84,502		74,822
	Accumulated other comprehensive income (loss), net of tax			(2,123)		(2,367)
		Total Shareholders' Equity attributable to Parent		113,489		103,181
	Noncontrolling Interest			1,581		1,566
		TOTAL EQUITY		115,070		104,747
		TOTAL LIABILITIES & EQUITY		$         930,532		$      859,505
				-		-
		Book value per share		$45.58		$41.70

 

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
					2026		2025		2026		2025
INTEREST INCOME:
	Loans and Leases, including fees				13,638		12,010		26,072		23,280
	Investment securities:
		Taxable			953		779		1,876		1,496
		Tax-exempt			14		12		28		25
	Interest bearing balances at banks				149		345		1,199		796
		Total Interest Income			14,754		13,146		29,175		25,597
INTEREST EXPENSE:
	Interest on deposits				2,579		2,337		5,685		4,592
	Interest on borrowed funds				541		194		678		333
		Total Interest Expense			3,120		2,531		6,363		4,925
Net Interest Income					11,634		10,615		22,812		20,672
	Provision for credit losses				235		1,369		1,240		997
		Net Interest Income After Provision for Credit Losses			11,399		9,246		21,572		19,675
NON-INTEREST INCOME:
	Service charges - deposits				380		153		712		300
	ATM fee income				178		179		334		333
	Gain on sale of loans				69		313		114		361
	Business banking income				351		541		710		1,026
	Commercial finance fee income				290		210		616		639
	Operating lease revenue				223		169		465		337
	Income on bank owned life insurance				99		94		196		186
	Gain on disposal of fixed assets				-		255		-		255
	Other				289		335		462		581
		Total Noninterest Income			1,879		2,249		3,609		4,018
NON-INTEREST EXPENSE:
	Salaries and employee benefits				5,402		4,620		10,896		9,328
	Occupancy and equipment				808		629		1,554		1,429
	Data Processing and Software				1,361		1,010		2,584		2,042
	Legal and other professional fees				329		373		648		807
	Other loan expense				609		425		940		595
	Loss on sale of OREO				-		-		33		-
	Writedown on OREO				-		-		-		-
	Other				1,310		605		2,496		1,761
		Total Noninterest Expense			9,819		7,662		19,151		15,962
Income Before Income Taxes					3,459		3,833		6,030		7,731
	Income tax expense				615		733		1,197		1,468
Net Income Before Noncontrolling Interest					2,844		3,100		4,833		6,263
	Net income attributable to Noncontrolling Interest				135		318		595		657
Net Income attributable to Parent					$        2,709		$         2,782		$        4,238		$        5,606
Earnings per Weighted Average Share - Basic					$          1.09		$           1.13		$          1.71		$          2.27

 

Oxford Bank Corporation
Consolidated Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
				Year to Date
				June 30				Change
				2026		2025		Amount		Percentage
Income Statement
		Interest income		$             29,175		$             25,597		$            3,578		14.0 %
		Interest expense		6,363		4,925		1,438		29.2 %
	Net interest income			22,812		20,672		2,140		10.4 %
		Provision for loan loss		1,240		997		243		24.4 %
		Noninterest income		3,609		4,018		(409)		(10.2 %)
		Noninterest expense		19,151		15,962		3,189		20.0 %
	Income before income taxes			6,030		7,731		(1,701)		(22.0 %)
		Income tax expense		1,197		1,468		(271)		(18.5 %)
		Net income attributable to Noncontrolling Interest		595		657		(62)		-9.4 %
	Net Income			$               4,238		$               5,606		$           (1,368)		-24.4 %
Balance Sheet Data
	Total assets			930,532		859,505		71,027		8.3 %
	Earning assets			844,504		753,881		90,623		12.0 %
	Total loans			722,911		635,007		87,904		13.8 %
	Allowance for credit losses			9,657		7,293		2,364		32.4 %
	Total deposits			769,832		721,355		48,477		6.7 %
	Other borrowings			37,551		15,925		21,626		135.8 %
	Liability for unfunded commitments			321		534		(213)		(39.9 %)
	Total equity			115,070		104,747		10,323		9.9 %
Asset Quality
	Other real estate owned, net			7,282		7,267		15		0.2 %
	Net charge-offs (recoveries)			(208)		2,082		(2,290)		(110.0 %)
	Non-accrual loans			16,323		10,568		5,755		54.5 %
	Nonperforming assets			23,605		17,835		5,770		32.4 %
	Non-accrual loans / total loans			2.26 %		1.66 %		0.59 %		35.7 %
	Allowance for loan credit loss / total loans			1.34 %		1.15 %		0.19 %		16.3 %
	Allowance for loan credit loss / non-accrual loans			59.16 %		69.01 %		(9.85 %)		(14.3 %)
Performance Measurements
	Bank net interest margin (TE)			4.97 %		5.22 %		(0.25 %)		(4.8 %)
	Return on average assets (annualized)			0.89 %		1.35 %		(0.45 %)		(33.6 %)
	Return on average equity (annualized)			7.57 %		11.20 %		(3.63 %)		(32.4 %)
	Equity / Assets			12.37 %		12.19 %		0.18 %		1.5 %
	Loans / Deposits			93.9 %		88.0 %		5.9 %		6.7 %
	Book value per share			$45.58		$41.70		$              3.88		9.3 %
	Earnings per weighted average share - basic			$                 1.71		$                 2.27		$             (0.56)		(24.8 %)
	Weighted average shares outstanding			2,478,471		2,466,607		11,864		0.5 %

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/oxford-bank-corporation-announces-second-quarter-2026-operating-results-302841283.html

SOURCE Oxford Bank Corporation

FAQ

How did Oxford Bank Corporation (OXBC) perform in Q2 2026?

Oxford Bank Corporation reported Q2 2026 net income attributable to the parent of $2.71 million, or $1.09 per share. According to the company, this compares with $2.78 million, or $1.13 per share, in Q2 2025 and $1.53 million, or $0.62 per share, in Q1 2026.

What were Oxford Bank Corporation (OXBC) net interest income and margin for Q2 2026?

Net interest income for Q2 2026 was $11.63 million, up from $10.62 million a year earlier. According to Oxford Bank Corporation, year-to-date net interest margin was 4.97%, compared with 5.22% for the prior-year period, supported by higher earning asset yields.

How did Oxford Bank Corporation (OXBC) loans and deposits change by June 30, 2026?

Total loans and leases reached $722.9 million and total deposits were $769.8 million at June 30, 2026. According to the company, loans grew 13.8% and deposits rose 6.7% year-over-year, reflecting both commercial finance and municipal banking growth.

What was Oxford Bank Corporation (OXBC) asset quality like in mid-2026?

Nonperforming assets totaled $23.61 million at June 30, 2026, up from $17.84 million a year earlier. According to Oxford Bank Corporation, non-accrual loans were $16.32 million, with the allowance for credit losses at $9.66 million, or 1.34% of total loans.

How did Oxford Bank Corporation (OXBC) expenses and noninterest income trend in 2026 year-to-date?

Year-to-date noninterest expense rose to $19.15 million, up 20.0% from 2025, while noninterest income declined 10.2% to $3.61 million. According to the company, higher expenses reflected investments in personnel, technology, treasury management, and costs tied to distressed assets and foreclosed properties.

What is Oxford Bank Corporation (OXBC) capital position and book value as of June 30, 2026?

Shareholders’ equity attributable to the parent was $113.49 million, with book value per share of $45.58 at June 30, 2026. According to Oxford Bank Corporation, the Bank’s Tier 1 capital ratio was 13.19%, remaining above well-capitalized regulatory thresholds and supporting future growth.

Did Oxford Bank Corporation (OXBC) mention future funding and liquidity plans in Q2 2026?

Management expects funding costs to rise modestly and future growth to rely more on specialty and municipal deposits. According to Oxford Bank Corporation, liquidity remains strong and continues to provide ample support for ongoing loan and earning asset expansion opportunities.