OXFORD, Mich., Nov. 3, 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 third quarter ended September 30, 2025.
The Company's quarterly consolidated earnings for the three months ended September 30, 2025, were $3.06 million, or $1.24 per weighted average share, compared to $2.75 million, or $1.12 per weighted average share for the same period one year ago and $2.78 million, or $1.13 per weighted average share for the second quarter of 2025. President and CEO, David Lamb, commented, "We are pleased with the performance during the quarter and year-to-date. As many of our team members are also owners, we prize the consistency we have achieved year to date. However, we are well aware of our need to continue to grow and change in an extremely competitive environment on a less than equal playing field i.e. credit unions' tax exemption is only one of several impediments. Our team is up to the challenge of transforming while growing even against a likely reduction in our several years of unprecedented margin. We aren't moving away from our strategy of people-oriented relationship supplemented by technology to improve clients' experience only accelerating change on the experience part. Clearly, our strength is our team's ability to build relationships, and we need to help them with a tool kit that helps not hinder that process. We are cautiously optimistic that AI will play a role in improving our competitiveness but not an overnight fix. I do remain confident in our ability to deliver consistent value to our stakeholders and believe we have a team that will do just that."
Lamb continued, "Comparing to prior year, net interest income grew at a 6% rate compared to noninterest expense increases of only 3%. This profitable growth indicates that we are effectively scaling our investments in technology and infrastructure. Net interest income is the lifeblood of community banks like Oxford and provides a stable and recurring driver of earnings going forward. Maintaining the pace of net interest income growth demonstrated year-to-date will be challenged by the variable-rate portion of the loan portfolio repricing in a declining rate environment."
Total Assets of the Company were $915.31 million as of September 30, 2025, compared to $859.51 million at June 30, 2025 and $870.50 million at September 30, 2024. "The balance sheet has increased significantly from the prior quarter end, driven by $62 million increase in deposits. This rapid growth is primarily attributable to a small number of large deposit relationships. As of September 30, 2025, the Bank's portfolio of large commercial depositors is at its highest aggregate balance since the team began daily tracking of this portfolio. Given the possibility of these large depositors normalizing their deposit levels, Cash has increased from the prior quarter to appropriately mitigate the Bank's liquidity risks. Liquidity remains strong between cash and readily marketable investments." reported CEO David Lamb.
Total loans and leases at September 30, 2025 were $663.06 million, compared to $635.01 million at June 30, 2025, or $597.00 million at September 30, 2024. 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). We very much appreciate our team's commitment to growing the lending businesses without relenting on requiring depository relationship so they have a relationship, not a commodity transaction. During the quarter, we launched the final phase (of a several years phase-in) of our Small Business Lending initiative. The purpose is to grow our small businesses client base significantly by streamlining the borrowing process for qualified small businesses. The team is excited about our ability to improve the client experience and reduce cycle times from application to funding, without compromising quality. We believe this will be an important element in our decade long drive to increase our deposit relationships significantly. To that end, we are revamping the small business deposit products to make them more valuable to our clients and prospects which should be ready by the beginning of the new year."
Total deposits were $783.02 million as of September 30, 2025, compared to $721.36 million at June 30, 2025 and $747.81 million at September 30, 2024. Overall Bank cost of funds remained 1.30% year-to-date, as of September 30, 2025, consistent with 1.30% for the first half of 2025. This is a slight increase from 1.25% for full-year 2024, which is due to the small increase in wholesale funding. The Bank's loan and deposit activity in the quarter resulted in Net Interest Margin ("NIM") expansion to 5.27% year-to-date, as of September 30, 2025, from 5.22% for the first half of 2025. This compares to 4.88% for full-year 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 rate environment where competition for deposits is very high. While utilizing comparatively expensive wholesale funding has driven the increase in our overall cost of funds, facilitating loan growth in this manner has ensured we do not unnecessarily cannibalize our low-cost branch network deposits in pursuit of balance sheet expansion."
The allowance for credit loss increased proportionally with portfolio growth, to $7.71 million at September 30, 2025, from $7.29 million at June 30, 2025. Provisions for credit loss of $0.86 million this quarter were driven roughly equally by provisions on net portfolio growth and by net charge-offs of $0.50 million. Lamb commented, "While non-accrual loans remain elevated compared to peers, we are confident that our exposures are properly supported by robust collateral coverage and/or government guarantee programs. We expect the loan portfolio to continue to show only modest and isolated losses. The drag, if any, on earnings performance is expected to be minor. We continue to closely monitor our customers and prospective customers for the impact of tariffs, but have not yet observed any meaningful change to their creditworthiness due to tariff policy. 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 $107.36 million as of September 30, 2025, representing book value per share of $43.36, compared to total shareholders' equity of $103.18 million, or $41.70 per share at June 30, 2025 and $95.10 million, or $38.58 per share at September 30, 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 $103.75 million as of September 30, 2025, or 14.24% of risk-weighted assets compared to $101.63 million, or 14.29% of risk-weighted assets as of June 30, 2025, and $94.50 million, or 13.83% as of September 30, 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)
September 30
------------------------------
2025 2024
--------------- -------------
ASSETS:
Cash and cash equivalents $ 83,017 $ 115,328
-------------------------------------- --------------- -------------
Interest bearing time deposits in
banks 496 3,479
Investment Securities -
Available-for-Sale 117,808 113,262
Investment Securities -
Held-to-Maturity 1,160 1,170
Loans and Leases 663,060 597,002
-------------------------------------- --------------- -------------
Less: Allowance for credit losses (7,713) (6,967)
--------------- -------------
Net loans and leases 655,347 590,035
Premises and equipment, net 8,831 8,231
Other real estate owned 7,310 -
Goodwill 7,000 7,000
Bank-owned life insurance 11,495 11,119
Equipment on operating leases, net 4,413 3,550
Accrued interest receivable and other
assets 18,434 17,323
TOTAL ASSETS $ 915,311 $ 870,497
====================================== =============== =============
LIABILITIES:
Deposits
Noninterest-bearing $ 272,742 $ 276,980
Interest-bearing 510,282 470,828
Total deposits 783,024 747,808
-------------------------------------- --------------- -------------
Borrowings 13,828 15,771
Accrued interest payable, taxes and
other liabilities 9,503 10,235
--------------- -------------
TOTAL LIABILITIES 806,355 773,814
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
September 30, 2025 and 2024,
respectively 30,891 30,404
Retained Earnings 77,884 67,534
Accumulated other comprehensive income
(loss), net of tax (1,417) (2,840)
--------------- -------------
Total Shareholders' Equity
attributable to Parent 107,358 95,098
Noncontrolling Interest 1,598 1,585
--------------- -------------
TOTAL EQUITY 108,956 96,683
--------------- -------------
TOTAL LIABILITIES & EQUITY $ 915,311 $ 870,497
====================================== =============== =============
Book value per share $43.36 $38.58
-------------------------------------- --------------- -------------
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
---------------------------------- --------------------------------
2025 2024 2025 2024
--------------- ----------------- --------------- ---------------
INTEREST INCOME:
Loans and Leases,
including fees 12,409 11,255 35,689 32,361
Investment
securities:
Taxable 874 604 2,370 1,886
Tax-exempt 15 14 40 42
Interest bearing
balances at
banks 465 680 1,261 2,759
Total Interest
Income 13,763 12,553 39,360 37,048
---------------- --------------- ----------------- --------------- ---------------
INTEREST EXPENSE:
Interest on
deposits 2,462 2,489 7,054 6,488
Interest on
borrowed funds 155 231 488 630
--------------- ----------------- --------------- ---------------
Total Interest
Expense 2,617 2,720 7,542 7,118
Net Interest
Income 11,146 9,833 31,818 29,930
Provision for
credit losses 863 324 1,860 1,538
Net Interest
Income After
Provision for
Credit Losses 10,283 9,509 29,958 28,392
---------------- --------------- ----------------- --------------- ---------------
NON-INTEREST
INCOME:
Service charges -
deposits 158 157 458 499
ATM fee income 173 176 506 514
Gain on sale of
loans 98 51 459 192
Business banking
income 305 301 1,331 1,261
Commercial
finance fee
income 418 687 1,057 1,793
Operating lease
revenue 168 169 505 487
Income on bank
owned life
insurance 97 92 283 269
Gain (loss) on
disposal of
fixed assets - - 255 -
Other 500 244 1,081 782
Total
Noninterest
Income 1,917 1,877 5,935 5,797
---------------- --------------- ----------------- --------------- ---------------
NON-INTEREST
EXPENSE:
Salaries and
employee
benefits 4,653 4,655 13,981 13,972
Occupancy and
equipment 767 574 2,197 1,724
Data Processing
and Software 1,112 1,109 3,154 3,328
Legal and other
professional
fees 320 194 1,127 728
Other loan
expense 227 111 822 643
Loss (gain) on
sale of OREO 56 - 56 -
Other 913 1,013 2,674 2,836
Total
Noninterest
Expense 8,048 7,656 24,011 23,231
---------------- --------------- ----------------- --------------- ---------------
Income Before
Income Taxes 4,152 3,730 11,882 10,958
Income tax
expense 793 674 2,261 2,223
--------------- ----------------- --------------- ---------------
Net Income Before
Noncontrolling
Interest 3,359 3,056 9,621 8,735
Net income
attributable to
Noncontrolling
Interest 296 303 953 447
Net Income
attributable to
Parent $ 3,063 $ 2,753 $ 8,668 $ 8,288
================== =============== ================= =============== ===============
Earnings per
Weighted Average
Share - Basic $ 1.24 $ 1.12 $ 3.51 $ 3.37
------------------ --------------- ----------------- --------------- ---------------
Oxford Bank Corporation
Consolidated Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date
---------------------------------------------------------------------------------
September 30 Change
----------------------------------------------- --------------------------------
2025 2024 Amount Percentage
----------------------- ---------------------- -------------------- ----------
Income Statement
Interest income $ 39,360 $ 37,048 $ 2,312 6.2 %
Interest expense 7,542 7,118 424 6.0 %
----------------------- ---------------------- -------------------- ----------
Net interest
income 31,818 29,930 1,888 6.3 %
Provision for
loan loss 1,860 1,538 322 20.9 %
Noninterest
income 5,935 5,797 138 2.4 %
Noninterest
expense 24,011 23,231 780 3.4 %
----------------------- ---------------------- -------------------- ----------
Income before
income taxes 11,882 10,958 924 8.4 %
Income tax
expense 2,261 2,223 38 1.7 %
Net income
attributable to
Noncontrolling
Interest 953 447 506 113.2 %
----------------------- ---------------------- -------------------- ----------
Net Income $ 8,668 $ 8,288 $ 886 10.7 %
======================= ====================== ==================== ==========
Balance Sheet
Data
Total assets 915,311 870,497 44,814 5.1 %
Earning assets 782,524 714,913 67,611 9.5 %
Total loans 663,060 597,002 66,058 11.1 %
Allowance for
credit losses 7,713 6,967 746 10.7 %
Total deposits 783,024 747,808 35,216 4.7 %
Other borrowings 13,828 15,771 (1,943) (12.3 %)
Liability for
unfunded
commitments 473 217 256 118.0 %
Total equity 108,956 96,683 12,273 12.7 %
Asset Quality
Other real
estate owned 7,310 - 7,310 n/a
Net charge-offs
(recoveries) 2,585 786 1,799 228.9 %
Non-accrual
loans 15,777 9,185 6,592 71.8 %
Nonperforming
assets 23,087 9,185 13,902 151.4 %
Non-accrual
loans / total
loans 2.38 % 1.54 % 0.84 % 54.7 %
Allowance for
loan credit
loss / total
loans 1.16 % 1.17 % (0.00 %) (0.3 %)
Allowance for
loan credit
loss /
non-accrual
loans 48.89 % 75.85 % (26.96 %) (35.5 %)
Performance
Measurements
Bank net
interest margin
$(TE)$ 5.27 % 4.77 % 0.50 % 10.5 %
Return on
average assets
(annualized) 1.36 % 1.28 % 0.09 % 6.7 %
Return on
average equity
(annualized) 11.34 % 12.34 % (1.00 %) (8.1 %)
Equity / Assets 11.90 % 11.11 % 0.80 % 7.2 %
Loans / Deposits 84.7 % 79.8 % 4.8 % 6.1 %
Book value per
share $43.36 $38.58 $ 4.78 12.4 %
Earnings per
weighted
average share -
basic $ 3.51 $ 3.37 $ 0.14 4.1 %
Weighted average
shares
outstanding 2,469,991 2,458,579 11,412 0.5 %
---------------- ----------------------- ---------------------- -------------------- ----------
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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November 03, 2025 15:15 ET (20:15 GMT)
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