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

Rhea-AI Summary

Oxford Bank Corporation (OTCBB: OXBC) reported strong Q2 2025 financial results, with quarterly earnings of $2.78 million ($1.13 per share), up from $2.26 million ($0.92 per share) year-over-year. The bank's total assets reached $859.51 million as of June 30, 2025, with deposits increasing by $24 million to $721.36 million.

Key performance metrics include net interest margin expansion to 5.22% year-to-date, total loans of $635.01 million, and a strong capital position with the Bank's Tier 1 capital at 14.29% of risk-weighted assets. The company's book value per share increased to $41.70, up from $36.72 year-over-year.

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

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/oxford-bank-corporation-announces-six-month-and-second-quarter-2025-operating-results-302520816.html

SOURCE Oxford Bank Corporation