OXFORD, Mich., Aug. 3, 2026 /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTCQX: OXBC), the holding company for Oxford Bank ("the Bank"), today announced operating results for the second quarter ended June 30, 2026.
The Company reported consolidated net income of $2.71 million, or $1.09 per weighted average share, for the second quarter of 2026, compared to $2.78 million, or $1.13 per share, for the same period one year ago and $1.53 million, or $0.62 per share, in the first quarter of 2026.
Chairman, President and CEO David Lamb commented, "Balance sheet trends during the second quarter reflect the normalized growth expectations for our business. Deposits increased $29 million and loans grew $21 million during the quarter, reflecting continued momentum across our Company. This growth is driven by our team's ability to build deep client relationships that foster long-term loyalty and attract higher-value banking relationships. The strength of the Oxford Bank brand continues to support successful expansion into attractive growth niches, including municipal banking and small business lending."
Core Earnings, Credit Quality, and Lending Activity
"From an operating standpoint, our lending businesses produced another exceptional quarter," Lamb continued. "Oxford Commercial Finance loans and leases reached a record $147 million at June 30, 2026, demonstrating continued demand for the business line's specialized financing solutions. Conventional commercial lending originations also performed well as teams converted strong pipelines into new client relationships while maintaining discipline around underwriting, pricing, and deposit relationship requirements. Growth in conventional commercial balances was moderated by the timing of several planned relationship exits and loan payoffs."
"Importantly, earning asset yields continued to increase at a pace that exceeded funding cost pressures. Average earning asset yields expanded to 7.15% during June compared with 6.93% during the prior quarter, supporting margin expansion and overall profitability."
Net interest income for the quarter increased $1.02 million, or 10%, compared to the same quarter in 2025 and increased $0.46 million, or 4%, from the first quarter of 2026. Net interest margin expanded to 4.97% year-to-date, compared with 4.79% in the first quarter of 2026, reflecting improving earning asset yields and continued balance sheet optimization. The benefit of higher asset yields more than offset modest increases in funding costs during the period.
Provision for credit losses totaled $0.24 million during the quarter, reflecting specific reserve allocations associated with certain nonperforming credits. Net recoveries of approximately $0.13 million partially offset the provision expense.
"Our Managed Asset team continues to perform exceptionally well," Lamb noted. "During the first six months of 2026, the team recovered approximately $232 thousand of previously charged-off balances, highlighting both the quality of our workout process and the value of our collateral management efforts. While a small number of nonperforming credits continue to require active management, we remain encouraged by both our collection results and the progress toward resolution."
Deposit Trends, Liquidity, and Funding
Total assets increased to $930.5 million at June 30, 2026, compared to $902.1 million at March 31, 2026, reflecting strong deposit growth and continued expansion of earning assets. Total deposits increased to $769.8 million at quarter-end, compared to $740.6 million at March 31, 2026.
Bank cost of funds increased modestly to 1.49% year-to-date, compared with 1.47% during the first quarter and 1.31% for full-year 2025. Retail branch deposits remain the foundation of the Bank's low-cost funding base, and the cost of these deposits has remained stable. Recent growth has been supplemented through higher-cost funding channels that now represent a larger proportion of the overall funding mix. The Bank's Municipal Banking platform continued to gain momentum during the quarter, growing to approximately $65 million in deposits at June 30, 2026.
"As the Bank continues to expand its earning asset base through disciplined lending, we anticipate funding costs will continue to increase at a modest pace," Lamb said. "In many of our core markets, Oxford Bank already maintains meaningful deposit market share, which naturally limits the pace of growth available through traditional retail channels alone. As a result, future funding growth will increasingly be supported by specialty deposit verticals, municipal banking relationships, and other strategic funding channels. Liquidity remains strong and continues to provide ample support for future growth opportunities."
Expense Trends and Operating Leverage
Noninterest expense increased compared to the prior-year period, reflecting continued investments in team, technology, treasury management infrastructure, and costs associated with managing and resolving certain distressed assets. During the quarter, the Bank incurred property taxes, carrying costs, and other expenditures related to foreclosed real estate and nonperforming assets.
"The Managed Asset team made meaningful progress during the quarter toward resolution of our largest foreclosed property exposure," Lamb said. "While these expenses negatively affect reported efficiency metrics in the short term, management believes the actions being taken are necessary to maximize recovery and reduce long-term risk exposure. Successfully resolving these assets should allow more of our expanding net interest income to flow through to shareholder earnings in future periods."
Capital and Shareholder Value
Total shareholders' equity increased to $113.5 million at June 30, 2026, representing book value per share of $45.58, compared to $44.85 at March 31, 2026. The increase reflects continued earnings generation and growth in retained capital.
The Bank's Tier 1 capital ratio was 13.19% at quarter-end and remained comfortably above regulatory well-capitalized thresholds, reflecting the strength of the balance sheet and providing capacity to support continued growth. We are actively working on capital management as current levels are too high.
Outlook
Lamb concluded, "Our second quarter results demonstrate the underlying earnings power of the franchise and the resilience of our relationship-based business model. Loan and deposit growth remained strong, earning asset yields improved, and net income returned to a more normalized level following first-quarter credit-related impacts."
"While work remains to resolve a small number of legacy problem assets, we remain confident in our ability to continue generating profitable growth, expanding shareholder value, and delivering long-term results consistent with the expectations we have established for the organization. Our team remains focused on deepening client relationships, maintaining disciplined credit standards, and building a stronger franchise for our shareholders, customers, employees, and communities."
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)
June 30
---------------------------------
2026 2025
----------------- --------------
ASSETS:
Cash and cash equivalents $ 39,008 $ 51,851
--------------------------------- ----------------- --------------
Interest bearing time deposits in
banks 496 750
Investment Securities -
Available-for-Sale 120,512 116,964
Investment Securities -
Held-to-Maturity 585 1,160
Loans and Leases 722,911 635,007
--------------------------------- ----------------- --------------
Less: Allowance for credit losses (9,657) (7,293)
----------------- --------------
Net loans and leases 713,254 627,714
Premises and equipment, net 9,101 8,618
Other real estate owned, net 7,282 7,267
Goodwill 7,000 7,000
Bank-owned life insurance 11,788 11,398
Equipment on operating leases,
net 4,091 2,596
Accrued interest receivable and
other assets 17,415 24,187
TOTAL ASSETS $ 930,532 $ 859,505
================================= ================= ==============
LIABILITIES:
Deposits
Noninterest-bearing $ 273,602 $ 275,179
Interest-bearing 496,230 446,176
Total deposits 769,832 721,355
--------------------------------- ----------------- --------------
Borrowings 37,551 15,925
Accrued interest payable, taxes
and other liabilities 8,079 17,478
----------------- --------------
TOTAL LIABILITIES 815,462 754,758
SHAREHOLDERS' EQUITY
Common stock, no par value;
10,000,000 shares authorized;
2,490,027 and 2,474,361 shares
issued and outstanding as of
June 30, 2026 and 2025,
respectively 31,110 30,726
Retained Earnings 84,502 74,822
Accumulated other comprehensive
income (loss), net of tax (2,123) (2,367)
----------------- --------------
Total Shareholders' Equity
attributable to Parent 113,489 103,181
Noncontrolling Interest 1,581 1,566
----------------- --------------
TOTAL EQUITY 115,070 104,747
----------------- --------------
TOTAL LIABILITIES & EQUITY $ 930,532 $ 859,505
================================= ================= ==============
- -
Book value per share $45.58 $41.70
Oxford Bank Corporation
Consolidated Statement of Income (Unaudited)
(Dollars in thousands except per share data)
Quarter to Date Year to Date
------------------------------- ------------------------------
June 30 June 30
------------------------------- ------------------------------
2026 2025 2026 2025
-------------- --------------- -------------- --------------
INTEREST INCOME:
Loans and Leases,
including fees 13,638 12,010 26,072 23,280
Investment
securities:
Taxable 953 779 1,876 1,496
Tax-exempt 14 12 28 25
Interest bearing
balances at
banks 149 345 1,199 796
============== =============== ============== ==============
Total Interest
Income 14,754 13,146 29,175 25,597
---------------- -------------- --------------- -------------- --------------
INTEREST EXPENSE:
Interest on
deposits 2,579 2,337 5,685 4,592
Interest on
borrowed funds 541 194 678 333
-------------- --------------- -------------- --------------
Total Interest
Expense 3,120 2,531 6,363 4,925
Net Interest
Income 11,634 10,615 22,812 20,672
Provision for
credit losses 235 1,369 1,240 997
============== =============== ============== ==============
Net Interest
Income After
Provision for
Credit Losses 11,399 9,246 21,572 19,675
---------------- -------------- --------------- -------------- --------------
NON-INTEREST
INCOME:
Service charges -
deposits 380 153 712 300
ATM fee income 178 179 334 333
Gain on sale of
loans 69 313 114 361
Business banking
income 351 541 710 1,026
Commercial
finance fee
income 290 210 616 639
Operating lease
revenue 223 169 465 337
Income on bank
owned life
insurance 99 94 196 186
Gain on disposal
of fixed assets - 255 - 255
Other 289 335 462 581
============== =============== ============== ==============
Total
Noninterest
Income 1,879 2,249 3,609 4,018
---------------- -------------- --------------- -------------- --------------
NON-INTEREST
EXPENSE:
Salaries and
employee
benefits 5,402 4,620 10,896 9,328
Occupancy and
equipment 808 629 1,554 1,429
Data Processing
and Software 1,361 1,010 2,584 2,042
Legal and other
professional
fees 329 373 648 807
Other loan
expense 609 425 940 595
Loss on sale of
OREO - - 33 -
Writedown on OREO - - - -
Other 1,310 605 2,496 1,761
============== =============== ============== ==============
Total
Noninterest
Expense 9,819 7,662 19,151 15,962
---------------- -------------- --------------- -------------- --------------
Income Before
Income Taxes 3,459 3,833 6,030 7,731
Income tax
expense 615 733 1,197 1,468
-------------- --------------- -------------- --------------
Net Income Before
Noncontrolling
Interest 2,844 3,100 4,833 6,263
Net income
attributable to
Noncontrolling
Interest 135 318 595 657
Net Income
attributable to
Parent $ 2,709 $ 2,782 $ 4,238 $ 5,606
================== ============== =============== ============== ==============
Earnings per
Weighted Average
Share - Basic $ 1.09 $ 1.13 $ 1.71 $ 2.27
Oxford Bank Corporation
Consolidated Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date
-----------------------------------------------------------------------------
June 30 Change
-------------------------------------------- -------------------------------
2026 2025 Amount Percentage
--------------------- --------------------- ------------------- ----------
Income Statement
-----------------
Interest income $ 29,175 $ 25,597 $ 3,578 14.0 %
Interest expense 6,363 4,925 1,438 29.2 %
--------------------- --------------------- ------------------- ----------
Net interest
income 22,812 20,672 2,140 10.4 %
Provision for
loan loss 1,240 997 243 24.4 %
Noninterest
income 3,609 4,018 (409) (10.2 %)
Noninterest
expense 19,151 15,962 3,189 20.0 %
--------------------- --------------------- ------------------- ----------
Income before
income taxes 6,030 7,731 (1,701) (22.0 %)
Income tax
expense 1,197 1,468 (271) (18.5 %)
Net income
attributable to
Noncontrolling
Interest 595 657 (62) -9.4 %
--------------------- --------------------- ------------------- ----------
Net Income $ 4,238 $ 5,606 $ (1,368) -24.4 %
--------------------- --------------------- ------------------- ----------
Balance Sheet
Data
-----------------
Total assets 930,532 859,505 71,027 8.3 % Earning assets 844,504 753,881 90,623 12.0 % Total loans 722,911 635,007 87,904 13.8 % Allowance for credit losses 9,657 7,293 2,364 32.4 % Total deposits 769,832 721,355 48,477 6.7 % Other borrowings 37,551 15,925 21,626 135.8 % Liability for unfunded commitments 321 534 (213) (39.9 %) Total equity 115,070 104,747 10,323 9.9 % Asset Quality ----------------- Other real estate owned, net 7,282 7,267 15 0.2 % Net charge-offs (recoveries) (208) 2,082 (2,290) (110.0 %) Non-accrual loans 16,323 10,568 5,755 54.5 % Nonperforming assets 23,605 17,835 5,770 32.4 % Non-accrual loans / total loans 2.26 % 1.66 % 0.59 % 35.7 % Allowance for loan credit loss / total loans 1.34 % 1.15 % 0.19 % 16.3 % Allowance for loan credit loss / non-accrual loans 59.16 % 69.01 % (9.85 %) (14.3 %) Performance Measurements ----------------- Bank net interest margin $(TE)$ 4.97 % 5.22 % (0.25 %) (4.8 %) Return on average assets (annualized) 0.89 % 1.35 % (0.45 %) (33.6 %) Return on average equity (annualized) 7.57 % 11.20 % (3.63 %) (32.4 %) Equity / Assets 12.37 % 12.19 % 0.18 % 1.5 % Loans / Deposits 93.9 % 88.0 % 5.9 % 6.7 % Book value per share $45.58 $41.70 $ 3.88 9.3 % Earnings per weighted average share - basic $ 1.71 $ 2.27 $ (0.56) (24.8 %) Weighted average shares outstanding 2,478,471 2,466,607 11,864 0.5 %
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SOURCE Oxford Bank Corporation
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