OXFORD BANK CORPORATION ANNOUNCES FIRST QUARTER 2025 OPERATING RESULTS
PR Newswire
OXFORD, Mich., May 5, 2025
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
Consolidated Balance Sheet (Unaudited)
(Dollars in thousands except per share data)
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
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SOURCE Oxford Bank Corporation
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