OXFORD, Mich., May 5, 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 first quarter ended March 31, 2025.
The Company's quarterly consolidated earnings for the three months ended March 31, 2025, were $2.82 million, or $1.15 per weighted average share, compared to $1.67 million, or $0.68 per weighted average share for the fourth quarter of 2024. Earnings decreased from the same period one year ago, as first quarter 2024 net income was $3.28 million. President and CEO, David Lamb, commented, "We are pleased with the performance during the quarter and see positive momentum building for strong, profitable, growth throughout 2025. The loan and deposit pipelines are robust, and now we must deliver on this potential by converting pipelines into closings and fundings. Our business strategy remains consistent, which is serving our clients throughout their company's life cycle and across the maturity spectrum of their business' operations. We remain confident this strategy will continue to deliver consistent value to the communities we serve, with solid short-term and long-term financial success for the Company and value for our stockholders."
Lamb continued, "On a year-over-year basis, revenue generation is consistent while noninterest expenses increased, driving the slight decline in profit, compared with the first quarter of 2024. This expense increase was driven partly by the inflationary environment, but also by continued investment into the technology infrastructure which supports our top-notch service capabilities. Our technology focus remains on improving the experience of clients while decreasing our cost to do so. This includes the launch of our new and improved treasury management platform, which will soon be followed by our next generation smart safes. We are proud to offer sophisticated service capabilities that rival much larger banks or financial institutions, while differentiating ourselves by fostering a highly valued relationship with our customers."
Total Assets of the Company were $823.87 million as of March 31, 2025, compared to $811.2 million at December 31, 2024 and $883.21 million at March 31, 2024. "The balance sheet has increased from the prior quarter end, driven primarily by fluctuations in large depositor balances. 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 March 31, 2025 were $622.5 million, compared to $613.5 million at December 31, 2024, or $556.2 million at March 31, 2024. A significant contribution to the $9 million quarter-over-quarter increase came from the attractive, highly competitive Ann Arbor market, where the recent promotion of a highly experienced Group Manager has been successful. 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). This focus on full-relationship banking does take longer to establish roots in new markets as requires establishing value for that market."
Total deposits were $697.44 million as of March 31, 2025, compared to $686.93 million at December 31, 2024 and $770.97 million at March 31, 2024. Overall Bank cost of funds was 1.27% for the quarter, compared to 1.25% for 2024. The Bank's loan and deposit activity in the quarter resulted in a Net Interest Margin ("NIM") of 5.15% for the quarter, compared to 4.88% for full-year 2024 and 4.59% for first quarter of 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 declining rate environment where competition for deposits is very high."
The allowance for credit loss declined to $7.27 million at March 31, 2025, from $8.61 million at December 31, 2024. The primary driver of the decline was net charge-offs of $1.1 million against specific reserves, as final resolutions were reached for several non-performing loans. The specific reserves taken during previous periods were sufficient to resolve these exposures without income statement impact. Additionally, the credit team recovered $0.3 million on loans previously charged-off. Lamb commented, "While non-accrual loans remain elevated compared to peers, we are confident that our exposures are properly supported by robust collateral coverage. We expect the loan portfolio to continue to show only modest and isolated losses consistent with or better than industry averages. 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 $99.85 million as of March 31, 2025, representing book value per share of $40.51, compared to total shareholders' equity of $96.08 million, or $38.98 per share at December 31, 2024 and $87.24 million, or $35.53 per share at March 31, 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 $98.53 million as of March 31, 2025, or 13.99% of risk-weighted assets compared to $96.0 million, or 13.93% of risk-weighted assets as of December 31, 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 | |||
March 31 | |||
2025 | 2024 | ||
ASSETS: | |||
Cash and cash equivalents | $ 42,955 | $ 144,325 | |
Interest bearing time deposits in banks | 750 | 5,220 | |
Investment Securities - Available-for-Sale | 115,768 | 127,974 | |
Investment Securities - Held-to-Maturity | 1,160 | 1,170 | |
Loans and Leases | 622,505 | 562,386 | |
Less: Allowance for credit losses | (7,272) | (6,202) | |
Net loans and leases | 615,233 | 556,184 | |
Premises and equipment, net | 9,433 | 8,420 | |
Other real estate owned | - | - | |
Goodwill | 7,000 | 7,000 | |
Bank-owned life insurance | 11,304 | 10,938 | |
Equipment on operating leases, net | 4,093 | 4,093 | |
Accrued interest receivable and other assets | 16,175 | 17,885 | |
TOTAL ASSETS | $ 823,871 | $ 883,209 | |
LIABILITIES: | |||
Deposits | |||
Noninterest-bearing | $ 286,430 | $ 302,971 | |
Interest-bearing | 411,013 | 468,015 | |
Total deposits | 697,443 | 770,986 | |
Borrowings | 15,787 | 15,754 | |
Accrued interest payable, taxes and other liabilities | 8,959 | 8,175 | |
TOTAL LIABILITIES | 722,189 | 794,915 | |
SHAREHOLDERS' EQUITY | |||
Common stock, no par value; 10,000,000 shares authorized; | |||
2,465,056 and 2,455,341 shares issued and outstanding as of | |||
March 31, 2025 and 2024, respectively | 30,558 | 30,224 | |
Retained Earnings | 72,041 | 62,523 | |
Accumulated other comprehensive income (loss), net of tax | (2,751) | (5,504) | |
Total Shareholders' Equity attributable to Parent | 99,848 | 87,243 | |
Noncontrolling Interest | 1,834 | 1,051 | |
TOTAL EQUITY | 101,682 | 88,294 | |
TOTAL LIABILITIES & EQUITY | $ 823,871 | $ 883,209 | |
Book value per share | $ 40.51 | $ 35.53 | |
Oxford Bank Corporation | |||||||
Consolidated Statement of Income (Unaudited) | |||||||
(Dollars in thousands except per share data) | |||||||
Quarter to Date | Year to Date | ||||||
March 31 | March 31 | ||||||
2025 | 2024 | 2025 | 2024 | ||||
INTEREST INCOME: | |||||||
Loans and Leases, including fees | 11,270 | 10,711 | 11,270 | 10,711 | |||
Investment securities: | |||||||
Taxable | 717 | 584 | 717 | 584 | |||
Tax-exempt | 13 | 14 | 13 | 14 | |||
Interest bearing balances at banks | 451 | 1,054 | 451 | 1,054 | |||
Total Interest Income | 12,451 | 12,363 | 12,451 | 12,363 | |||
INTEREST EXPENSE: | |||||||
Interest on deposits | 2,255 | 1,938 | 2,255 | 1,938 | |||
Interest on borrowed funds | 139 | 142 | 139 | 142 | |||
Total Interest Expense | 2,394 | 2,080 | 2,394 | 2,080 | |||
Net Interest Income | 10,057 | 10,283 | 10,057 | 10,283 | |||
Provision for credit losses | (372) | (43) | (372) | (43) | |||
Net Interest Income After Provision for Credit Losses | 10,429 | 10,326 | 10,429 | 10,326 | |||
NON-INTEREST INCOME: | |||||||
Service charges - deposits | 147 | 155 | 147 | 155 | |||
ATM fee income | 154 | 161 | 154 | 161 | |||
Gain on sale of loans | 48 | 89 | 48 | 89 | |||
Business banking income | 485 | 375 | 485 | 375 | |||
Commercial finance fee income | 429 | 337 | 429 | 337 | |||
Operating lease revenue | 168 | 150 | 168 | 150 | |||
Income on bank owned life insurance | 92 | 88 | 92 | 88 | |||
Other | 246 | 295 | 246 | 295 | |||
Total Noninterest Income | 1,769 | 1,650 | 1,769 | 1,650 | |||
NON-INTEREST EXPENSE: | |||||||
Salaries and employee benefits | 4,708 | 4,577 | 4,708 | 4,577 | |||
Occupancy and equipment | 800 | 542 | 800 | 542 | |||
Data Processing | 1,032 | 1,062 | 1,032 | 1,062 | |||
Legal and other professional fees | 434 | 254 | 434 | 254 | |||
Other loan expense | 170 | 203 | 170 | 203 | |||
Other | 1,156 | 888 | 1,156 | 888 | |||
Total Noninterest Expense | 8,300 | 7,526 | 8,300 | 7,526 | |||
Income Before Income Taxes | 3,898 | 4,450 | 3,898 | 4,450 | |||
Income tax expense | 735 | 860 | 735 | 860 | |||
Net Income Before Noncontrolling Interest | 3,163 | 3,590 | 3,163 | 3,590 | |||
Net income attributable to Noncontrolling Interest | 339 | 313 | 339 | 313 | |||
Net Income attributable to Parent | $ 2,824 | $ 3,277 | $ 2,824 | $ 3,277 | |||
Earnings per Weighted Average Share - Basic | $ 1.15 | $ 1.33 | $ 1.15 | $ 1.33 | |||
Oxford Bank Corporation | |||||||||||
Consolidated Financial Summary and Selected Ratios (Unaudited) | |||||||||||
(Dollars in thousands except per share data) | |||||||||||
Year to Date | |||||||||||
March 31 | Change | ||||||||||
2025 | 2024 | Amount | Percentage | ||||||||
Income Statement | |||||||||||
Interest income | $ 12,451 | $ 12,363 | $ 88 | 0.7 % | |||||||
Interest expense | 2,394 | 2,080 | 314 | 15.1 % | |||||||
Net interest income | 10,057 | 10,283 | (226) | (2.2 %) | |||||||
Provision for loan loss | (372) | (43) | (329) | N/M | |||||||
Noninterest income | 1,769 | 1,650 | 119 | 7.2 % | |||||||
Noninterest expense | 8,300 | 7,526 | 774 | 10.3 % | |||||||
Income before income taxes | 3,898 | 4,450 | (552) | (12.4 %) | |||||||
Income tax expense | 735 | 860 | (125) | (14.5 %) | |||||||
Net income attributable to Noncontrolling Interest | 339 | 313 | 26 | 8.3 % | |||||||
Net Income | $ 2,824 | $ 3,277 | $ (427) | -13.0 % | |||||||
Balance Sheet Data | |||||||||||
Total assets | 823,871 | 883,209 | (59,338) | (6.7 %) | |||||||
Earning assets | 740,183 | 696,750 | 43,433 | 6.2 % | |||||||
Total loans | 622,505 | 562,386 | 60,119 | 10.7 % | |||||||
Allowance for credit losses | 7,272 | 6,202 | 1,070 | 17.3 % | |||||||
Total deposits | 697,443 | 770,986 | (73,543) | (9.5 %) | |||||||
Other borrowings | 15,787 | 15,754 | 33 | 0.2 % | |||||||
Liability for unfunded commitments | 463 | 275 | 188 | 68.4 % | |||||||
Total equity | 101,682 | 88,294 | 13,388 | 15.2 % | |||||||
Asset Quality | |||||||||||
Other real estate owned | - | - | - | n/a | |||||||
Net charge-offs (recoveries) | 804 | (87) | 891 | - | |||||||
Non-accrual loans | 13,878 | 9,320 | 4,558 | 48.9 % | |||||||
Nonperforming assets | 13,878 | 9,320 | 4,558 | 48.9 % | |||||||
Non-accrual loans / total loans | 2.23 % | 1.66 % | 0.57 % | 34.5 % | |||||||
Allowance for loan credit loss / total loans | 1.17 % | 1.10 % | 0.07 % | 5.9 % | |||||||
Allowance for loan credit loss / non-accrual loans | 52.40 % | 66.55 % | (14.15 %) | (21.3 %) | |||||||
Performance Measurements | |||||||||||
Bank net interest margin (TE) | 5.15 % | 4.59 % | 0.56 % | 12.2 % | |||||||
Return on average assets (annualized) | 1.28 % | 1.49 % | (0.21 %) | (13.8 %) | |||||||
Return on average equity (annualized) | 13.11 % | 15.21 % | (2.10 %) | (13.8 %) | |||||||
Equity / Assets | 12.34 % | 10.00 % | 2.35 % | 23.5 % | |||||||
Loans / Deposits | 89.3 % | 72.9 % | 16.3 % | 22.4 % | |||||||
Book value per share | $40.51 | $35.53 | $ 4.97 | 14.0 % | |||||||
Earnings per weighted average share - basic | $ 1.15 | $ 1.33 | $ (0.19) | (14.2 %) | |||||||
Weighted average shares outstanding | 2,465,056 | 2,455,341 | 9,715 | 0.4 % | |||||||
Contact: | David P. Lamb, Chairman, President & CEO |
Phone: | (248) 628-2533 |
Fax: | (248) 969-7230 |
SOURCE Oxford Bank Corporation
