OXFORD BANK CORPORATION ANNOUNCES THIRD QUARTER 2026 OPERATING RESULTS

Deposit growth enabled repayment of all outstanding FHLB advances and reduced brokered deposit use.

Rhea-AI Summary

Oxford Bank Corporation (OXBC) reported third-quarter 2026 net income attributable to the parent of $3.8 million, up approximately 24% year over year. Earnings per share rose to $1.52 from $1.24. Core net income was $2.952 million versus $2.931 million, while core earnings per share fell to $1.18 from $1.19.

Quarterly net interest income increased 12.5% to $12.538 million. Noninterest income reached $3.655 million, including a $1.070 million fixed-asset disposal gain. Noninterest expense rose to $9.800 million from $8.048 million, and credit-loss provisions increased to $992,000 from $863,000. Nine-month parent net income declined 7.4% to $8.024 million. Loans and leases grew 9.7% year over year to $727.334 million. The company initially expects full-year net income of $11.5–$12.0 million, or $10.8–$11.3 million on a core basis.

13 points · 0 major

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0 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter parent net income rose approximately 24% year over year; earnings per share increased to $1.52 from $1.24.
• Moderate pointNet interest income increased to $12.538 million quarterly and $35.350 million year-to-date, up 12.5% and 11.1%, respectively.
• Moderate pointQuarterly noninterest income rose to $3.655 million from $1.917 million, including a $1.070 million fixed-asset disposal gain.
• Moderate pointLoans and leases increased 9.7% year over year to $727.334 million at September 30, 2026.
• Moderate pointTotal assets increased 5.9% year over year to $969.398 million at September 30, 2026.
• Moderate pointDeposits reached $828.379 million, up 5.8% year over year and $58.6 million from the prior quarter.
• Moderate pointTotal equity increased 8.9% year over year to $118.659 million at September 30, 2026.
• Moderate pointTangible book value per share increased 8.4% year over year to $43.75.
• Moderate pointYear-to-date credit results shifted to $284,000 net recoveries from $2.585 million net charge-offs a year earlier. 2.1% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Initial company expectations put full-year 2026 net income at $11.5–$12.0 million, or $10.8–$11.3 million core.

3 minor points

• Minor pointNine-month noninterest income increased 22.4% year over year to $7.264 million.
• Minor pointDeposit growth enabled repayment of all outstanding FHLB advances and reduced brokered deposit use.
• Minor pointAccruing loans delinquent 30–89 days declined to $61,000 at September 30, 2026.

Negative

• Moderate pointNine-month parent net income fell 7.4% year over year to $8.024 million; earnings per share declined to $3.23 from $3.51.
• Moderate pointNine-month core net income declined to $7.303 million from $8.335 million; core earnings per share fell to $2.94 from $3.38.
• Moderate pointNoninterest expense increased to $9.800 million quarterly and $28.951 million year-to-date, from $8.048 million and $24.011 million.
• Moderate pointCredit-loss provisions increased to $992,000 quarterly and $2.232 million year-to-date, from $863,000 and $1.860 million.
• Moderate pointLoan expenses remain elevated because of extended resolution times on two longstanding larger workouts.

3 minor points

• Minor pointQuarterly core earnings per share fell to $1.18 from $1.19 despite core income rising to $2.952 million from $2.931 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.The bank expects charge-offs as nonperforming loans are resolved in coming quarters, using associated specific reserves.
• Minor pointAccumulated other comprehensive loss widened to $3.154 million from $1.417 million at September 30, 2025.

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OXFORD, Mich., Oct. 29, 2026 /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTCQX: OXBC), the holding company for Oxford Bank ("the Bank"), today announced operating results for the third quarter ended September 30, 2026.

The Company reported consolidated net income attributable to the parent company of $3.8 million, or $1.52 per share, for the third quarter ended September 30, 2026. This compares with $3.1 million, or $1.24 per share, for the third quarter of 2025. Third-quarter net income increased approximately 24%, while earnings per share increased approximately 23% from the prior-year quarter. Core net income attributable to the parent company for the quarter totaled $2.9 million, or $1.18 per share, compared with $2.9 million, or $1.19 per share, for the same period in 2025.

For the first nine months of 2026, net income attributable to the parent company totaled $8.0 million, or $3.23 per share, compared with $8.7 million, or $3.51 per share, for the same period in 2025. Core net income attributable to the parent company totaled $7.3 million, or $2.94 per share, compared with $8.3 million, or $3.38 per share, for the same period in 2025. Year-to-date results reflect continued growth in net interest income, offset by higher operating expenses and an increased provision for credit losses.

Balance Sheet Growth and Capital

Total assets were $969.4 million at September 30, 2026, an increase of $54.1 million, or 5.9%, from $915.3 million at September 30, 2025.

Loans and leases increased $64.3 million, or 9.7%, to $727.3 million, compared with $663.1 million one year earlier. Total deposits increased $58.6 million from the prior quarter, with growth coming from Municipal Banking and Conventional Business Banking.  Municipal Banking balances exceeded $100 million at September 30, 2026.  Strong deposit growth facilitated the repayment of all outstanding FHLB advances and reduction in brokered deposit utilization.

Total equity increased $9.7 million, or 8.9%, to $118.7 million. Tangible book value per share increased 8.4% to $43.75, compared with $40.36 at September 30, 2025.

Revenue Performance

Net interest income for the third quarter was $12.5 million, an increase of 12.5% from $11.1 million in the prior-year quarter. For the first nine months of 2026, net interest income increased 11.1% to $35.4 million, compared with $31.8 million for the same period in 2025. Growth in the balance sheet has driven the increasing net interest income, with net interest margins remaining stable in the mid-5s.  We are pleased to effectively deploy our growing capital base into larger earning asset portfolios without compressing our best-in-class net interest margin.

Third-quarter noninterest income totaled $3.7 million, compared with $1.9 million in the third quarter of 2025. Year-to-date noninterest income was $7.3 million, an increase of 22.4% from $5.9 million during the first nine months of 2025. This increase was largely due to the $1.1 million one-time gain on sale from disposal of the former Business Solutions Center and Operations Center.  Q3 Gains on Sale of SBA Loans were the strongest in several quarters, and a robust pipeline bodes well for closing out the year strong.

Expenses and Credit Provision

Noninterest expense was $9.8 million for the third quarter, compared with $8.0 million in the prior-year quarter. For the first nine months of 2026, noninterest expense totaled $29.0 million, compared with $24.0 million for the same period in 2025. The largest year-over-year increases were in salaries and employee benefits, data processing and software, other loan expense, and other operating expense. Our loan expense is higher than normal due to the extended work-out time on two longstanding larger workouts.

The provision for credit losses was $992,000 for the third quarter and $2.2 million for the first nine months of 2026, compared with $863,000 and $1.9 million, respectively, for the corresponding 2025 periods. The allowance for credit losses was $10.8 million at September 30, 2026, compared with $7.7 million one year earlier, representing approximately 1.48% of total loans and leases at September 30, 2026.  This ratio increased from 1.34% at June 30, 2026 and has the Bank well positioned going forward.  The additional reserves allow the Bank to experience charge-offs as we resolve non-performing loans in coming quarters, while still remaining appropriately reserved after utilizing the specific reserves associated with those loans.   Additionally, we are encouraged by accruing 30-89 days delinquencies declining even further, to a negligible $61,000 at September 30, 2026.

Management Perspective

David Lamb, President, CEO and Chair noted "Our third-quarter results demonstrate continued balance sheet and revenue growth, including strong expansion in loans, deposits and net interest income. At the same time, we have continued to invest in our people, technology and operating capabilities.  Our initial expectation is our FYE 2026 net income will be in the range of $11.5-$12.0 million or $10.8-$11.3 million on a core basis, which would equate to $4.33-$4.53 per share noted."

"He added quarterly performance benefited from a gain on the disposal of fixed assets (turning a non-earning asset into earning assets), while year-to-date earnings reflect higher operating expenses and credit loss provisions. We believe this balanced view is important when evaluating the company's underlying franchise, funding base, growth and capital position."

On Asset Quality, Lamb stated "We believe our specific reserves/potential future charge-offs are well accounted for. Our concentration in commercial & industrial lending, including Oxford Commercial Finance ("OCF") working capital, does result in more idiosyncratic issues by borrowers vs. market segment concentration (like say, lodging) collapsing. We will have generally small loan losses as part of our businesses in most economic cycles with the recent performance outlier in our conventional business banking group due to two long-standing work-outs concentrated in terms of resolution time frame. Our expectation is in a recessionary environment we will have significantly lower losses than our peers because we aren't as subject to sector collapse like investment real estate concentrated peers. We also would expect our results will be stronger than peers in a recessionary environment because of the counter-cyclical impact of the OCF business which should grow faster and more profitably as conventional lending decreases."

Selected Financial Highlights

Dollars in thousands, except per-share data	Q3 2026	Q3 2025	YTD 2026	YTD 2025
Net interest income	$12,538	$11,146	$35,350	$31,818
Provision for credit losses	992	863	2,232	1,860
Noninterest income	3,655	1,917	7,264	5,935
Noninterest expense	9,800	8,048	28,951	24,011
Income before income taxes	5,401	4,152	11,431	11,882
Net income attributable to parent	$3,786	$3,063	$8,024	$8,668
Non-core items (tax-effected)	($834)1	($132)2	($721)3	($333)4
Core net income attributable to parent	$2,952	$2,931	$7,303	$8,335
Basic earnings per share	$1.52	$1.24	$3.23	$3.51
Core earnings per share	$1.18	$1.19	$2.94	$3.38

1	Q3'26 core income adjustments include a $14K loss on the sale of OREO and a $1.1 million gain on the sale of fixed assets
2	Q3'25 core income adjustments include a $56K loss on the sale of OREO and a $223K Gain on extinguishment of subordinated debt
3	YTD 2026 includes the Q3'26 adjustments above and an additional $33K loss on the sale of OREO and a $110K loss on the sale of fixed assets
4	YTD 2025 includes the Q3'25 adjustments above and an additional $255K gain on the sale of fixed assets

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)
				September 30
				2026	2025
ASSETS:
	Cash and cash equivalents			$           65,422	$        83,017
	Interest bearing time deposits in banks			-	496
	Investment Securities - Available-for-Sale			130,890	117,808
	Investment Securities - Held-to-Maturity			585	1,160
	Loans and Leases			727,334	663,060
		Less: Allowance for credit losses		(10,791)	(7,713)
	Net loans and leases			716,543	655,347
	Premises and equipment, net			8,467	8,831
	Other real estate owned, net			7,268	7,310
	Goodwill			7,000	7,000
	Bank-owned life insurance			11,888	11,495
	Equipment on operating leases, net			3,984	4,413
	Accrued interest receivable and other assets			17,350	18,434
		TOTAL ASSETS		$         969,398	$      915,311
LIABILITIES:
	Deposits
	Noninterest-bearing			$         300,503	$      272,742
	Interest-bearing			527,876	510,282
		Total deposits		828,379	783,024
	Borrowings			13,856	13,828
	Accrued interest payable, taxes and other liabilities			8,504	9,503
		TOTAL LIABILITIES		850,739	806,355
SHAREHOLDERS' EQUITY
	Common stock, no par value; 10,000,000 shares authorized;
		2,492,329 and 2,476,160 shares issued and outstanding as of
		September 30, 2026 and 2025, respectively		31,405	30,891
	Retained Earnings			88,288	77,884
	Accumulated other comprehensive income (loss), net of tax			(3,154)	(1,417)
		Total Shareholders' Equity attributable to Parent		116,539	107,358
	Noncontrolling Interest			2,120	1,598
		TOTAL EQUITY		118,659	108,956
		TOTAL LIABILITIES & EQUITY		$         969,398	$      915,311
				-	-
		Book value per share		$46.76	$43.36

 

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
					2026	2025		2026	2025
INTEREST INCOME:
	Loans and Leases, including fees				14,252	12,409		40,324	35,689
	Investment securities:
		Taxable			1,044	874		2,920	2,370
		Tax-exempt			12	15		40	40
	Interest bearing balances at banks				457	465		1,656	1,261
		Total Interest Income			15,765	13,763		44,940	39,360
INTEREST EXPENSE:
	Interest on deposits				3,027	2,462		8,712	7,054
	Interest on borrowed funds				200	155		878	488
		Total Interest Expense			3,227	2,617		9,590	7,542
Net Interest Income					12,538	11,146		35,350	31,818
	Provision for credit losses				992	863		2,232	1,860
		Net Interest Income After Provision for Credit Losses			11,546	10,283		33,118	29,958
NON-INTEREST INCOME:
	Service charges - deposits				438	158		1,150	458
	ATM fee income				177	173		511	506
	Gain on sale of loans				502	98		616	459
	Business banking income				351	305		1,061	1,331
	Commercial finance fee income				458	418		1,074	1,057
	Operating lease revenue				223	168		688	505
	Income on bank owned life insurance				100	97		296	283
	Gain on disposal of fixed assets				1,070	-		1,070	255
	Other				336	500		798	1,081
		Total Noninterest Income			3,655	1,917		7,264	5,935
NON-INTEREST EXPENSE:
	Salaries and employee benefits				5,527	4,653		16,423	13,981
	Occupancy and equipment				719	767		2,273	2,197
	Data Processing and Software				1,257	1,112		3,841	3,154
	Legal and other professional fees				492	320		1,140	1,127
	Other loan expense				224	227		1,164	822
	Loss on sale of OREO				15	56		48	56
	Writedown on OREO				-	-		-	-
	Other				1,566	913		4,062	2,674
		Total Noninterest Expense			9,800	8,048		28,951	24,011
Income Before Income Taxes					5,401	4,152		11,431	11,882
	Income tax expense				945	793		2,142	2,261
Net Income Before Noncontrolling Interest					4,456	3,359		9,289	9,621
	Net income attributable to Noncontrolling Interest				670	296		1,265	953
Net Income attributable to Parent					$        3,786	$         3,063		$        8,024	$        8,668
Earnings per Weighted Average Share - Basic					$          1.52	$           1.24		$          3.23	$          3.51

 

Oxford Bank Corporation
Consolidated Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
				Year to Date
				September 30			Change
				2026	2025		Amount	Percentage
Income Statement
		Interest income		$             44,940	$             39,360		$            5,580	14.2 %
		Interest expense		9,590	7,542		2,048	27.2 %
	Net interest income			35,350	31,818		3,532	11.1 %
		Provision for loan loss		2,232	1,860		372	20.0 %
		Noninterest income		7,264	5,935		1,329	22.4 %
		Noninterest expense		28,951	24,011		4,940	20.6 %
	Income before income taxes			11,431	11,882		(451)	(3.8 %)
		Income tax expense		2,142	2,261		(119)	(5.3 %)
		Net income attributable to Noncontrolling Interest		1,265	953		312	32.7 %
	Net Income			$               8,024	$               8,668		$              (644)	-7.4 %
Balance Sheet Data
	Total assets			969,398	915,311		54,087	5.9 %
	Earning assets			858,809	782,524		76,285	9.7 %
	Total loans			727,334	663,060		64,274	9.7 %
	Allowance for credit losses			10,791	7,713		3,078	39.9 %
	Total deposits			828,379	783,024		45,355	5.8 %
	Other borrowings			13,856	13,828		28	0.2 %
	Liability for unfunded commitments			255	473		(218)	(46.2 %)
	Total equity			118,659	108,956		9,703	8.9 %
Asset Quality
	Other real estate owned, net			7,268	7,310		(42)	(0.6 %)
	Net charge-offs (recoveries)			(284)	2,585		(2,869)	(111.0 %)
	Non-accrual loans			17,796	15,777		2,019	12.8 %
	Nonperforming assets			25,064	23,087		1,977	8.6 %
	Non-accrual loans / total loans			2.45 %	2.38 %		0.07 %	2.8 %
	Allowance for loan credit loss / total loans			1.48 %	1.16 %		0.32 %	27.5 %
	Allowance for loan credit loss / non-accrual loans			60.64 %	48.89 %		11.75 %	24.0 %
Performance Measurements
	Bank net interest margin (TE)			5.20 %	5.27 %		(0.07 %)	(1.3 %)
	Return on average assets (annualized)			1.13 %	1.36 %		(0.23 %)	(17.2 %)
	Return on average equity (annualized)			9.43 %	11.34 %		(1.90 %)	(16.8 %)
	Equity / Assets			12.24 %	11.90 %		0.34 %	2.8 %
	Loans / Deposits			87.8 %	84.7 %		3.1 %	3.7 %
	Book value per share			$46.76	$43.36		$              3.40	7.8 %
	Earnings per weighted average share - basic			$                 3.23	$                 3.51		$             (0.28)	(7.9 %)
	Weighted average shares outstanding			2,483,346	2,469,991		13,355	0.5 %

 

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SOURCE Oxford Bank Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Oxford Bank's third-quarter 2026 earnings?

Oxford Bank reported parent net income of $3.8 million, or $1.52 per share, compared with $3.1 million, or $1.24 per share, a year earlier. Core net income was $2.952 million versus $2.931 million, while core earnings per share declined to $1.18 from $1.19.

What is Oxford Bank's full-year 2026 earnings outlook?

The company initially expects full-year 2026 net income of $11.5–$12.0 million and core net income of $10.8–$11.3 million.

How much credit-loss allowance did Oxford Bank hold at September 30, 2026?

The allowance for credit losses was $10.791 million, compared with $7.713 million a year earlier. It represented approximately 1.48% of total loans and leases, up from 1.34% at June 30, 2026. The bank expects to use specific reserves as it resolves nonperforming loans in coming quarters.

Why were Oxford Bank's loan expenses elevated in 2026?

The company attributed higher-than-normal loan expenses to extended resolution times on two longstanding larger workouts. Other loan expense totaled $1.164 million for the first nine months of 2026, compared with $822,000 in the same period of 2025.