OXFORD BANK CORPORATION ANNOUNCES THIRD QUARTER 2025 AND NINE-MONTH OPERATING RESULTS

Rhea-AI Summary

Oxford Bank Corporation (OTC: OXBC) reported third-quarter 2025 results with Q3 net income $3.06M ($1.24 per share) and YTD net income $8.67M (+10.7% vs. 2024). Total assets were $915.31M and total deposits $783.02M as of Sep 30, 2025. Net interest income rose to $31.82M YTD (+6.3%) and bank net interest margin expanded to 5.27% YTD. Loans increased to $663.06M (+11.1% YTD) while allowance for credit losses rose to $7.71M (+10.7%). Non-accrual loans and net charge-offs increased materially year‑over‑year.

Positive

• Net income +10.7% year-to-date ($8.67M)
• Total loans +11.1% year-to-date ($663.06M)
• Bank NIM expanded to 5.27% year-to-date
• Total shareholders' equity +12.7% year-to-date ($108.96M)

Negative

• Net charge-offs +228.9% year-to-date ($2.585M)
• Non-accrual loans +71.8% year-to-date ($15.78M)
• Allowance for credit losses increased 10.7% to $7.71M

OXFORD, Mich., Nov. 3, 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 third quarter ended September 30, 2025.

The Company's quarterly consolidated earnings for the three months ended September 30, 2025, were $3.06 million, or $1.24 per weighted average share, compared to $2.75 million, or $1.12 per weighted average share for the same period one year ago and $2.78 million, or $1.13 per weighted average share for the second quarter of 2025.  President and CEO, David Lamb, commented, "We are pleased with the performance during the quarter and year-to-date. As many of our team members are also owners, we prize the consistency we have achieved year to date. However, we are well aware of our need to continue to grow and change in an extremely competitive environment on a less than equal playing field i.e. credit unions' tax exemption is only one of several impediments. Our team is up to the challenge of transforming while growing even against a likely reduction in our several years of unprecedented margin. We aren't moving away from our strategy of people-oriented relationship supplemented by technology to improve clients' experience only accelerating change on the experience part. Clearly, our strength is our team's ability to build relationships, and we need to help them with a tool kit that helps not hinder that process. We are cautiously optimistic that AI will play a role in improving our competitiveness but not an overnight fix. I do remain confident in our ability to deliver consistent value to our stakeholders and believe we have a team that will do just that."

Lamb continued, "Comparing to prior year, net interest income grew at a 6% rate compared to noninterest expense increases of only 3%.  This profitable growth indicates that we are effectively scaling our investments in technology and infrastructure. Net interest income is the lifeblood of community banks like Oxford and provides a stable and recurring driver of earnings going forward.  Maintaining the pace of net interest income growth demonstrated year-to-date will be challenged by the variable-rate portion of the loan portfolio repricing in a declining rate environment."

Total Assets of the Company were $915.31 million as of September 30, 2025, compared to $859.51 million at June 30, 2025 and $870.50 million at September 30, 2024.  "The balance sheet has increased significantly from the prior quarter end, driven by $62 million increase in deposits.  This rapid growth is primarily attributable to a small number of large deposit relationships.  As of September 30, 2025, the Bank's portfolio of large commercial depositors is at its highest aggregate balance since the team began daily tracking of this portfolio.  Given the possibility of these large depositors normalizing their deposit levels, Cash has increased from the prior quarter to appropriately mitigate the Bank's liquidity risks.  Liquidity remains strong between cash and readily marketable investments." reported CEO David Lamb.

Total loans and leases at September 30, 2025 were $663.06 million, compared to $635.01 million at June 30, 2025, or $597.00 million at September 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).  We very much appreciate our team's commitment to growing the lending businesses without relenting on requiring depository relationship so they have a relationship, not a commodity transaction.  During the quarter, we launched the final phase (of a several years phase-in) of our Small Business Lending initiative. The purpose is to grow our small businesses client base significantly by streamlining the borrowing process for qualified small businesses.  The team is excited about our ability to improve the client experience and reduce cycle times from application to funding, without compromising quality. We believe this will be an important element in our decade long drive to increase our deposit relationships significantly. To that end, we are revamping the small business deposit products to make them more valuable to our clients and prospects which should be ready by the beginning of the new year."

Total deposits were $783.02 million as of September 30, 2025, compared to $721.36 million at June 30, 2025 and $747.81 million at September 30, 2024. Overall Bank cost of funds remained 1.30% year-to-date, as of September 30, 2025, consistent with 1.30% for the first half of 2025.  This is a slight increase from 1.25% for full-year 2024, which is due to the small increase in wholesale funding.  The Bank's loan and deposit activity in the quarter resulted in Net Interest Margin ("NIM") expansion to 5.27% year-to-date, as of September 30, 2025, from 5.22% for the first half 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."

The allowance for credit loss increased proportionally with portfolio growth, to $7.71 million at September 30, 2025, from $7.29 million at June 30, 2025.  Provisions for credit loss of $0.86 million this quarter were driven roughly equally by provisions on net portfolio growth and by net charge-offs of $0.50 million.  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.  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 continue to closely monitor our customers and prospective customers for the impact of tariffs, but have not yet observed any meaningful change to their creditworthiness due to tariff policy. 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 $107.36 million as of September 30, 2025, representing book value per share of $43.36, compared to total shareholders' equity of $103.18 million, or $41.70 per share at June 30, 2025 and $95.10 million, or $38.58 per share at September 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 $103.75 million as of September 30, 2025, or 14.24% of risk-weighted assets compared to $101.63 million, or 14.29% of risk-weighted assets as of June 30, 2025, and $94.50 million, or 13.83% as of September 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)
				September 30
				2025	2024
ASSETS:
	Cash and cash equivalents			$         83,017	$      115,328
	Interest bearing time deposits in banks			496	3,479
	Investment Securities - Available-for-Sale			117,808	113,262
	Investment Securities - Held-to-Maturity			1,160	1,170
	Loans and Leases			663,060	597,002
		Less: Allowance for credit losses		(7,713)	(6,967)
	Net loans and leases			655,347	590,035
	Premises and equipment, net			8,831	8,231
	Other real estate owned			7,310	-
	Goodwill			7,000	7,000
	Bank-owned life insurance			11,495	11,119
	Equipment on operating leases, net			4,413	3,550
	Accrued interest receivable and other assets			18,434	17,323
		TOTAL ASSETS		$      915,311	$      870,497
LIABILITIES:
	Deposits
	Noninterest-bearing			$      272,742	$      276,980
	Interest-bearing			510,282	470,828
		Total deposits		783,024	747,808
	Borrowings			13,828	15,771
	Accrued interest payable, taxes and other liabilities			9,503	10,235
		TOTAL LIABILITIES		806,355	773,814
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
		September 30, 2025 and 2024, respectively		30,891	30,404
	Retained Earnings			77,884	67,534
	Accumulated other comprehensive income (loss), net of tax			(1,417)	(2,840)
		Total Shareholders' Equity attributable to Parent		107,358	95,098
	Noncontrolling Interest			1,598	1,585
		TOTAL EQUITY		108,956	96,683
		TOTAL LIABILITIES & EQUITY		$      915,311	$      870,497
		Book value per share		$43.36	$38.58

 

Oxford Bank Corporation
Consolidated Statement of Income (Unaudited)
(Dollars in thousands except per share data)
					Quarter to Date			Year to Date
					September 30			September 30
					2025	2024		2025	2024
INTEREST INCOME:
	Loans and Leases, including fees				12,409	11,255		35,689	32,361
	Investment securities:
		Taxable			874	604		2,370	1,886
		Tax-exempt			15	14		40	42
	Interest bearing balances at banks				465	680		1,261	2,759
		Total Interest Income			13,763	12,553		39,360	37,048
INTEREST EXPENSE:
	Interest on deposits				2,462	2,489		7,054	6,488
	Interest on borrowed funds				155	231		488	630
		Total Interest Expense			2,617	2,720		7,542	7,118
Net Interest Income					11,146	9,833		31,818	29,930
	Provision for credit losses				863	324		1,860	1,538
		Net Interest Income After Provision for Credit Losses			10,283	9,509		29,958	28,392
NON-INTEREST INCOME:
	Service charges - deposits				158	157		458	499
	ATM fee income				173	176		506	514
	Gain on sale of loans				98	51		459	192
	Business banking income				305	301		1,331	1,261
	Commercial finance fee income				418	687		1,057	1,793
	Operating lease revenue				168	169		505	487
	Income on bank owned life insurance				97	92		283	269
	Gain (loss) on disposal of fixed assets				-	-		255	-
	Other				500	244		1,081	782
		Total Noninterest Income			1,917	1,877		5,935	5,797
NON-INTEREST EXPENSE:
	Salaries and employee benefits				4,653	4,655		13,981	13,972
	Occupancy and equipment				767	574		2,197	1,724
	Data Processing and Software				1,112	1,109		3,154	3,328
	Legal and other professional fees				320	194		1,127	728
	Other loan expense				227	111		822	643
	Loss (gain) on sale of OREO				56	-		56	-
	Other				913	1,013		2,674	2,836
		Total Noninterest Expense			8,048	7,656		24,011	23,231
Income Before Income Taxes					4,152	3,730		11,882	10,958
	Income tax expense				793	674		2,261	2,223
Net Income Before Noncontrolling Interest					3,359	3,056		9,621	8,735
	Net income attributable to Noncontrolling Interest				296	303		953	447
Net Income attributable to Parent					$         3,063	$          2,753		$        8,668	$         8,288
Earnings per Weighted Average Share - Basic					$           1.24	$             1.12		$           3.51	$           3.37

 

Oxford Bank Corporation
Consolidated Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
				Year to Date
				September 30			Change
				2025	2024		Amount	Percentage
Income Statement
		Interest income		$               39,360	$              37,048		$              2,312	6.2 %
		Interest expense		7,542	7,118		424	6.0 %
	Net interest income			31,818	29,930		1,888	6.3 %
		Provision for loan loss		1,860	1,538		322	20.9 %
		Noninterest income		5,935	5,797		138	2.4 %
		Noninterest expense		24,011	23,231		780	3.4 %
	Income before income taxes			11,882	10,958		924	8.4 %
		Income tax expense		2,261	2,223		38	1.7 %
		Net income attributable to Noncontrolling Interest		953	447		506	113.2 %
	Net Income			$                 8,668	$                8,288		$                 886	10.7 %
Balance Sheet Data
	Total assets			915,311	870,497		44,814	5.1 %
	Earning assets			782,524	714,913		67,611	9.5 %
	Total loans			663,060	597,002		66,058	11.1 %
	Allowance for credit losses			7,713	6,967		746	10.7 %
	Total deposits			783,024	747,808		35,216	4.7 %
	Other borrowings			13,828	15,771		(1,943)	(12.3 %)
	Liability for unfunded commitments			473	217		256	118.0 %
	Total equity			108,956	96,683		12,273	12.7 %
Asset Quality
	Other real estate owned			7,310	-		7,310	n/a
	Net charge-offs (recoveries)			2,585	786		1,799	228.9 %
	Non-accrual loans			15,777	9,185		6,592	71.8 %
	Nonperforming assets			23,087	9,185		13,902	151.4 %
	Non-accrual loans / total loans			2.38 %	1.54 %		0.84 %	54.7 %
	Allowance for loan credit loss / total loans			1.16 %	1.17 %		(0.00 %)	(0.3 %)
	Allowance for loan credit loss / non-accrual loans			48.89 %	75.85 %		(26.96 %)	(35.5 %)
Performance Measurements
	Bank net interest margin (TE)			5.27 %	4.77 %		0.50 %	10.5 %
	Return on average assets (annualized)			1.36 %	1.28 %		0.09 %	6.7 %
	Return on average equity (annualized)			11.34 %	12.34 %		(1.00 %)	(8.1 %)
	Equity / Assets			11.90 %	11.11 %		0.80 %	7.2 %
	Loans / Deposits			84.7 %	79.8 %		4.8 %	6.1 %
	Book value per share			$43.36	$38.58		$                4.78	12.4 %
	Earnings per weighted average share - basic			$                   3.51	$                  3.37		$                0.14	4.1 %
	Weighted average shares outstanding			2,469,991	2,458,579		11,412	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

What did OXBC report for third-quarter 2025 net income and EPS?

OXBC reported Q3 2025 net income of $3.06M, or $1.24 per weighted average share.

How much did Oxford Bank's loans grow by Sep 30, 2025 (OXBC)?

Total loans were $663.06M as of Sep 30, 2025, a +11.1% increase year-to-date.

What was Oxford Bank's net interest margin (NIM) for 2025 YTD (OXBC)?

Bank NIM expanded to 5.27% year-to-date as of Sep 30, 2025.

How did Oxford Bank's deposit balances change by Sep 30, 2025 (OXBC)?

Total deposits were $783.02M at Sep 30, 2025, up from $747.81M a year earlier.

Are there asset quality concerns in OXBC's Q3 2025 report?

Asset‑quality metrics rose: non-accrual loans were $15.78M (+71.8%) and net charge-offs were $2.585M YTD (+228.9%).

What capital ratios or equity figures did OXBC report for Sep 30, 2025?

Total shareholders' equity was $108.96M and Tier 1 capital at the bank was $103.75M (14.24% of RWA).