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 % | ||||||
SOURCE Oxford Bank Corporation
