OXFORD, Mich., April 27 /PRNewswire-FirstCall/ -- Oxford Bank Corporation (BULLETIN BOARD: OXBC) , the holding company for Oxford Bank, announced today that its net income for the first quarter ending March 31, 2007, was $413,000, or $0.32 per common share. Earnings reported for the same period in 2006 were $922,000, or $0.72 per share.
Jeffrey M. Davidson, chairman, president, and chief executive officer of the Corporation, issued the report and commented, "Obviously, the drop in net income is unacceptable. However, a community bank will always be a reflection of the communities it serves. And, while our communities enjoyed unparalleled expansion for over 20 years, they are now struggling with rising unemployment, declining home values, and the fallout from the fundamental changes occurring within the automotive, and related, industries. Add to these incidences an inverted yield curve and high funding costs, and the result is an environment in which there is little incentive to grow the Bank." Davidson went on to say, "On the contrary, it is time to insure that underwriting standards are sound, that the allowance for loan losses is reflective of current risk levels, that operating expenses are controlled, and that our customers are being provided with competitive products and superior service experience."
Davidson concluded, "Oxford Bank is 123 years old. We have survived tough economic times before. It is important to note that Oxford Bank remains financially strong, and we have confidence in the long term future of our communities, in our line of services, and in our people."
The Corporation's total assets as of March 31, 2007 were $511,981,000 a 4.22 percent decrease from the same date in 2006. In the same twelve-month period, net loans outstanding fell 6.43 percent to $366,701,000, and total deposits declined 4.28 percent to $457,000,000. However, shareholders' equity increased 4.06 percent to $50,188,000.
Oxford Bank Corporation is a registered holding company. Its subsidiary, Oxford Bank, is the oldest commercial bank in Oakland County and operates eight full-service offices in Clarkston, Davison, Dryden, Goodrich, Lake Orion, Oakland Township, Ortonville and Oxford. It also manages a consumer lending center in Oxford and a commercial lending office in Lake Orion. The Bank has operated continuously under local ownership and management since it first opened for business in 1884.
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.
CONSOLIDATED STATEMENT OF CONDITION
(000's omitted except for per share data)
March 31
2007 2006
ASSETS
Cash and due from banks $ 13,993 $ 20,909
Interest-bearing deposits with bank 302 122
U.S. Treasury securities 0 0
U.S. Government agency securities 44,664 63,558
State and municipal securities 23,545 28,642
Other securities 6,310 3,330
Federal funds sold 39,530 10,720
Loans and discounts, net 366,701 391,915
Bank premises and equipment, net 9,933 10,082
Other assets 7,003 5,267
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TOTAL ASSETS $ 511,981 $ 534,545
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LIABILITIES
Demand deposits $ 62,143 $ 70,624
Savings and time deposits 394,857 406,806
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Total deposits $ 457,000 $ 477,430
TT&L and Other Borrowed Funds 663 5,041
Other liabilities 4,130 3,842
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Total liabilities $ 461,793 $ 486,313
SHAREHOLDERS' EQUITY
Common stock, 3,200,000 shares
authorized and 1,279,510 shares
issued and outstanding $ 18,000 $ 18,000
Surplus 0 0
Undivided profits 32,228 30,923
Net unrealized holding gains (losses) (40) (691)
---- ------
Total shareholders' equity $ 50,188 $ 48,232
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TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 511,981 $ 534,545
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Book value per share
(restated for 1,279,510 shares) $ 39.21 $ 37.69
COMPARATIVE INCOME STATEMENT
March 31, 2007
(000's omitted except for per share data)
YEAR TO DATE
2007 2006
INTEREST INCOME ACTUAL ACTUAL
INTEREST AND FEES ON LOANS
Commercial Loan $ 2,802 $ 2,605
Commercial Paper 0 0
Installment Loans 1,057 1,198
Mortgage Loans 2,019 2,294
Open End Loans 652 666
Late Charges & Fees 107 91
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TOTAL 6,637 6,853
INTEREST ON INVESTMENTS
Fed Funds Sold 450 61
Time Balances 3 1
U.S. Treasury Securities 0 0
U.S. Agency Securities 513 578
Tax Exempt Securities 199 213
Other Securities 118 82
--- --
TOTAL 1,283 935
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TOTAL INTEREST INCOME 7,920 7,788
INTEREST EXPENSE
Interest on Deposits 3,918 3,283
Interest on Borrowed Funds 7 84
- --
TOTAL INTEREST EXPENSE 3,925 3,367
----- -----
NET INTEREST INCOME 3,995 4,421
Provision for Loan Losses 655 380
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 3,340 4,041
Service Charge Income 397 376
Other Operating Income 268 258
--- ---
NET INTEREST & OTHER INCOME 4,005 4,675
OTHER OPERATING EXPENSES
Salaries & Employee Benefits 1,989 2,000
Occupancy Expense 375 350
Equipment Expense 114 102
Other Operating Expenses 1,013 937
----- ---
TOTAL OPERATING EXPENSES 3,491 3,388
----- -----
INCOME BEFORE INCOME TAXES 514 1,287
Federal Income Tax 101 365
NET INCOME FROM OPERATIONS 413 922
Securities Gains (Losses) 0 0
- -
NET INCOME $ 413 $ 922
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NET INCOME PER SHARE -
1,279,510 SHARES OUTSTANDING $ 0.32 $ 0.72
