Oxford Bank Corporation Announces Fourth Quarter And Full Year 2025 Operating Results

OXFORD, Mich., Jan. 29, 2026 /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTC Bulletin Board: OXBC), the holding company for Oxford Bank ("the Bank"), today announced operating results for the fourth quarter ended December 31, 2025.

The Company's quarterly consolidated earnings for the three months ended December 31, 2025, were $2.30 million, or $0.93 per weighted average share, compared to $1.68 million, or $0.68 per weighted average share for the same period one year ago and $3.06 million, or $1.24 per weighted average share for the third quarter of 2025. 2025 earnings of $10.96 million or $4.44 per share, increased 10% compared to $9.96 million or $4.05 per share in 2024. President and CEO, David Lamb, commented "We made significant progress on several aspects of our business during 2025. Our Business Banking team led by Chief Relationship Officer Morrison produced robust growth from new and existing clients, with the latter being an important referral source of new customers. Our innovation efforts under the leadership of Chief Operating Officer Rosentrater continue to support improvement across the Bank. In 2025 we introduced new treasury management technologies which improve experience and create opportunities with more sophisticated potential clients. Additionally, we have begun to leverage Artificial Intelligence ("AI") technologies for non-customer impacting activities. While we believe that AI will transform all industries including banking, we also believe that a technology this powerful but still in its infancy needs deliberative implementation. Our goal in 2025 was to build familiarity internally without impacting client experience or exposing us to unintended risk. Overall, we are pleased with financial performance as demonstrated by growth of $1 million, or +10%, in net income compared with 2024. The team delivered this strong performance despite the minor drag on earnings performance from credit-related expenses. We believe this performance represents the engagement and passion our team has to help people."

Lamb continued, "Comparing to prior year, net interest income grew at a 5% rate. This outcome was achieved despite the negative impact of declining rates on our net interest margin. While headline growth in noninterest expense outpaced this revenue growth, the majority of this expense increase was caused by a one-time charge to establish a $1.8 million valuation reserve against OREO."

Total Assets of the Company were $1.09 billion as of December 31, 2025, compared to $915.31 million at September 30, 2025 and $811.21 million at December 31, 2024. "The balance sheet has increased significantly, driven by unexpected growth in deposit balances of one large deposit relationship. Our client has noted that much of this growth is temporary due to an M&A transaction and is expected to materially reverse in the first half of 2026. As a result, the Bank has maintained outsized cash balances in anticipation of this deposit outflow. Overall, liquidity remains strong between cash and readily marketable investments, even with the "one off" expected outflow." reported CEO David Lamb.

Total loans and leases at December 31, 2025, were $661.37 million, compared to $663.06 million at September 30, 2025, or $613.50 million at December 31, 2024. CEO Lamb noted, "Our lending activity remains strong without compromising our standards for credit underwriting, and pricing discipline. I am exceptionally proud of our lending teams achieving 8% year-over-year growth in outstandings while managing their portfolios to maximize value for the Bank and our clients. We're excited to build on this momentum during 2026 with strong pipelines in both conventional and commercial finance."

Total deposits were $953.31 million as of December 31, 2025, compared to $783.02 million at September 30, 2025 and $686.93 million at December 31, 2024. Overall Bank cost of funds ticked up one basis point, to 1.31% for full-year 2025, compared with 1.30% through the first three quarters. The Bank's loan and deposit activity in the quarter resulted in Net Interest Margin ("NIM") of 5.23% for full-year 2025, up from 4.88% for full-year 2024. "We continue to be pleased with the reliable performance of our loyal deposit base, and the strength of our client relationships. This is the foundation of our low-cost funding mix and has allowed us to produce net interest margins well above peers."

The allowance for credit loss increased to $8.04 million at December 31, 2025, from $7.71 million at September 30, 2025. Provisions for credit loss of $0.51 million this quarter were driven primarily by an increase to the reserve ratio and secondarily roughly equally by provisions on net portfolio growth and by net charge-offs of $0.17 million. Lamb commented, "We have received investor bids for some foreclosed commercial properties which are measurably below appraised values. The number of assets is quite small so don't see it as new trend. However, we have proactively established a reserve against OREO to more accurately reflect the current state of market conditions for these properties. We remain confident that our Special Asset team will maximize the value of collateral and mitigate potential losses effectively. Compared to peers, we have low levels of investment real estate and office exposure, with a well-diversified mix of industry and local geography. We expect given the nature of our focus on C&I businesses both conventionally and in Oxford Commercial Finance that we may have higher nonperforming assets than our peer however we continue to remain confident that the impact to earnings will be minor."

The Company's total shareholders' equity was $109.71 million as of December 31, 2025, representing book value per share of $44.31, compared to total shareholders' equity of $107.36 million, or $43.36 per share at September 30, 2025 and $96.09 million, or $38.98 per share at December 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 $105.71 million as of December 31, 2025, or 13.94% of risk-weighted assets compared to $103.75 million, or 14.24% of risk-weighted assets as of September 30, 2025, and $95.97 million, or 13.93% 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 Consolidated Balance Sheet (Unaudited) (Dollars in thousands except per share data)
				December 31
				2025	2024
ASSETS:
	Cash and cash equivalents			$ 264,251	$ 45,281
	Interest bearing time deposits in banks			496	993
	Investment Securities - Available-for-Sale			115,769	111,410
	Investment Securities - Held-to-Maturity			585	1,160
	Loans and Leases			661,371	613,502
		Less: Allowance for credit losses		(8,037)	(8,614)
	Net loans and leases			653,335	604,888
	Premises and equipment, net			8,964	9,236
	Other real estate owned, net			5,451	-
	Goodwill			7,000	7,000
	Bank-owned life insurance			11,592	11,212
	Equipment on operating leases, net			4,305	3,436
	Accrued interest receivable and other assets			17,223	16,597
		TOTAL ASSETS		$ 1,088,971	$ 811,213
LIABILITIES:
	Deposits
	Noninterest-bearing			$ 281,063	$ 273,919
	Interest-bearing			672,251	413,007
		Total deposits		953,314	686,926
	Borrowings			13,835	15,779
	Accrued interest payable, taxes and other liabilities			10,389	10,528
		TOTAL LIABILITIES		977,537	713,233
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
		December 31, 2025 and 2024, respectively		30,841	30,445
	Retained Earnings			80,181	69,216
	Accumulated other comprehensive income (loss), net of tax			(1,311)	(3,569)
		Total Shareholders' Equity attributable to Parent		109,711	96,092
	Noncontrolling Interest			1,722	1,888
		TOTAL EQUITY		111,433	97,980
		TOTAL LIABILITIES & EQUITY		$ 1,088,970	$ 811,213
				-	-
		Book value per share		$44.31	$38.98

Oxford Bank Corporation Consolidated Statement of Income (Unaudited) (Dollars in thousands except per share data)
					Quarter to Date			Year to Date
					December 31			December 31
					2025	2024		2025	2024
INTEREST INCOME:
	Loans and Leases, including fees				12,355	12,519		48,044	44,880
	Investment securities:
		Taxable			899	637		3,269	2,523
		Tax-exempt			7	14		47	56
	Interest bearing balances at banks				1,677	1,098		2,938	3,857
		Total Interest Income			14,938	14,268		54,298	51,316
INTEREST EXPENSE:
	Interest on deposits				2,973	2,582		10,027	9,070
	Interest on borrowed funds				122	142		610	772
		Total Interest Expense			3,095	2,724		10,637	9,842
Net Interest Income					11,843	11,544		43,661	41,474
	Provision for credit losses				514	1,736		2,374	3,274
		Net Interest Income After Provision for Credit Losses			11,329	9,808		41,287	38,200
NON-INTEREST INCOME:
	Service charges - deposits				173	146		631	645
	ATM fee income				171	177		677	691
	Gain on sale of loans				43	56		502	248
	Business banking income				337	434		1,668	1,695
	Commercial finance fee income				259	-		1,316	1,793
	Operating lease revenue				254	168		759	655
	Income on bank owned life insurance				97	93		380	362
	Gain (loss) on disposal of fixed assets				-	-		255	-
	Other				697	(313)		1,778	469
		Total Noninterest Income			2,031	761		7,966	6,558
NON-INTEREST EXPENSE:
	Salaries and employee benefits				4,960	4,642		18,941	18,614
	Occupancy and equipment				695	597		2,892	2,321
	Data Processing and Software				1,090	1,189		4,244	4,517
	Legal and other professional fees				259	225		1,386	953
	Other loan expense				527	323		1,349	966
	Loss (gain) on sale of OREO				-	-		56	-
	Writedown on OREO				1,859	-		1,859	-
	Other				1,052	1,064		3,726	3,900
		Total Noninterest Expense			10,442	8,040		34,453	31,271
Income Before Income Taxes					2,918	2,529		14,800	13,487
	Income tax expense				360	546		2,621	2,769
Net Income Before Noncontrolling Interest					2,558	1,983		12,179	10,718
	Net income attributable to Noncontrolling Interest				262	303		1,215	750
Net Income attributable to Parent					$ 2,296	$ 1,680		$ 10,964	$ 9,968
Earnings per Weighted Average Share - Basic					$ 0.93	$ 0.68		$ 4.44	$ 4.05

	Oxford Bank Corporation Consolidated Financial Summary and Selected Ratios (Unaudited) (Dollars in thousands except per share data)
				Year to Date
				December 31			Change
				2025	2024		Amount	Percentage
Income Statement
		Interest income		$ 54,298	$ 51,316		$ 2,982	5.8 %
		Interest expense		10,637	9,842		795	8.1 %
	Net interest income			43,661	41,474		2,187	5.3 %
		Provision for loan loss		2,374	3,274		(900)	(27.5 %)
		Noninterest income		7,966	6,558		1,408	21.5 %
		Noninterest expense		34,453	31,271		3,182	10.2 %
	Income before income taxes			14,800	13,487		1,313	9.7 %
		Income tax expense		2,621	2,769		(148)	(5.3 %)
		Net income attributable to Noncontrolling Interest		1,215	750		465	62.0 %
	Net Income			$ 10,964	$ 9,968		$ 996	10.0 %
Balance Sheet Data
	Total assets			1,088,971	811,213		277,758	34.2 %
	Earning assets			778,221	727,065		51,156	7.0 %
	Total loans			661,371	613,502		47,869	7.8 %
	Allowance for credit losses			8,037	8,614		(577)	(6.7 %)
	Total deposits			953,314	686,926		266,388	38.8 %
	Other borrowings			13,835	15,779		(1,944)	(12.3 %)
	Liability for unfunded commitments			473	217		256	118.0 %
	Total equity			111,433	97,980		13,453	13.7 %
Asset Quality
	Other real estate owned, net			5,451	-		5,451	n/a
	Net charge-offs (recoveries)			2,755	786		1,969	250.5 %
	Non-accrual loans			15,540	9,829		5,711	58.1 %
	Nonperforming assets			20,991	9,829		11,162	113.6 %
	Non-accrual loans / total loans			2.35 %	1.60 %		0.75 %	46.7 %
	Allowance for loan credit loss / total loans			1.22 %	1.40 %		(0.19 %)	(13.5 %)
	Allowance for loan credit loss / non-accrual loans			51.72 %	87.64 %		(35.92 %)	(41.0 %)
Performance Measurements
	Bank net interest margin (TE)			5.23 %	4.88 %		0.35 %	7.2 %
	Return on average assets (annualized)			1.23 %	1.17 %		0.06 %	5.3 %
	Return on average equity (annualized)			10.55 %	10.94 %		(0.39 %)	(3.6 %)
	Equity / Assets			10.23 %	12.08 %		(1.85 %)	(15.3 %)
	Loans / Deposits			69.4 %	89.3 %		(19.9 %)	(22.3 %)
	Book value per share			$44.31	$38.98		$ 5.33	13.7 %
	Earnings per weighted average share - basic			$ 4.44	$ 4.05		$ 0.38	9.5 %
	Weighted average shares outstanding			2,471,533	2,460,238		11,295	0.5 %

Contact:	David P. Lamb, Chairman, President & CEO
Phone:	[phone]
Fax:	[phone]

SOURCE Oxford Bank Corporation