OXFORD BANK CORPORATION ANNOUNCES FIRST QUARTER 2024 OPERATING RESULTS

OXFORD, Michigan., May 7, 2024 /PRNewswire/ — Oxford Bank Corporation (“the Company”) (OTC Bulletin Board: OXBC), the holding company of Oxford Bank (“the Bank”), today announced its first quarter operating results finished March 31, 2024.

Quarterly consolidated results of the Company for the three months ended March 31, 2024were $3.28 millionOr $1.34 per weighted average share, compared to $3.42 millionOr $1.41 per weighted average share for the same period a year ago. President and CEO, David Lambcommented: “We are pleased to continue reporting consistent earnings this quarter given the continued economic uncertainty. Although the prolonged higher interest rate environment has had an impact on our interest expense, our cash and asset sensitive balance sheet has more than offset this effect to date. Our lending activities continue. to provide well-structured loans while maintaining a strong liquidity position and credit indicators. Our commercial finance and traditional business banking teams have reasonably strong pipelines, so we expect continued growth in these portfolios.

The total assets of the company were $883.21 million from March 31, 2024compared to $819.86 million has March 31, 2023. “The balance sheet grew significantly year-on-year, with the main driver being the continued execution of our strategy to dedicate a portion of excess liquidity to financing commercial loans. This has reduced our total cash and investments somewhat, but the core of our deposit portfolio has been reduced. has remained resilient as a primary source of funding. The duration of the investment portfolio remains approximately two years and will also provide consistent cash flow through 2024 given the scaling strategy executed when core deposits grew rapidly during the pandemic. Given the composition of the investment portfolio being heavily weighted. in relatively short U.S. Treasury bonds, the Company does not incur significant levels of unrealized losses,” the CEO said David Lamb.

Net loans at the end of the first quarter of 2024 amount to $556.18 millioncompared to $459.90 million at the end of the first quarter of 2023, an increase of $96.28 million or approximately 21%. The main factors explaining the year-over-year change were the increase in traditional commercial loans from $39.6 million as well as the growth of Oxford Commercial Finance (“OCF”) from $45.2 million and basically $11.5 million in consumer/home equity loans and SBA loans. CEO Lamb said: “Our lending business remains strong but controlled to drive the targeted growth seen in both conventional business lending and our commercial finance loan portfolios. The industry-wide lending environment remains fluid given the impact of rates and other economic forces. , the diversity of products we can offer and the complementary nature of traditional lending and commercial financing may provide us with an advantage given our ability to serve a broad range of customers. As we have noted in the past, the commercial finance industry is complex. There is no doubt that the critical element is that our teams continue to find and win new relationships with appropriate returns and relevant depository relationships. I have a high level of confidence in our team to continue. their past successes. »

The total deposits were $770.97 million from March 31, 2024an increase compared to $726.38 million has March 31, 2023. The Bank’s consistent lending and deposit activity during the quarter resulted in a net interest margin (“NIM”) of 5.12% for the first quarter of 2024, compared to 5.04% for the same period of 2023. Lamb continued: “We have been very pleased with the strength of our deposits and the strength of our relationships with our customers. With no current exposure to borrowing or wholesale funding, we believe we are well positioned to weather a longer “rising rate” environment on the liability side of our balance sheet. However, as we have all seen in our industry, there is, and will continue to be, economic and competitive pressure on our deposit portfolio. The increases recorded in the first quarter are mainly due to some seasonality in the portfolio as well as the increase in deposits. some larger deposit clients. The core of the portfolio remained practically stable. He added: “Even with high interest charges through 2023 and into 2024, our NIM is very strong, thanks to a relatively low cost of funding which has complemented our balance sheet and lending strategy . However, we also believe that further margin expansion is not likely given the current composition of our balance sheet, given the more consistent rate environment over the past two quarters and related upward pressures. continues interest charges in 2024. Inevitably, like many of our peers, our cost of funding will continue to increase if all things remain constant, however, given our very low starting point, we continue to believe that it will remain better than the averages for the entire sector. »

The Bank has seen a reduction in non-performing assets (“NPAs”) year-on-year. The majority of other NPAs are the same single loan relationship where the borrower has experienced delays in operation due to various licensing and approval delays. The Bank remains very well guaranteed, the relationship with the borrower is friendly and the change of a poorly classified loan is still expected in 2024 with a very low probability of loss. As noted previously, while we expect continued strong performance of the credit portfolio, the Bank may experience slight volatility in earnings and provision balances due to the methodology of the allowance for credit loss model (“CLA”). ACL) which was implemented in 2023. This was a component of the year-on-year increase in ACL (formerly Allowance for Loan and Rental Losses or ALLL) spending.

The total shareholders’ equity of the Company amounted to $88.29 million from March 31, 2024representing the book value per share of $35.96compared to the total equity of $74.13 millionOr $30.59 per share a year earlier. The year-on-year increase in shareholders’ equity mainly reflects the positive increase in retained earnings and the fact that 2024 saw a reduction in the negative impact of unrealized losses on the value of the Bank’s bond portfolio (Accumulated Other Comprehensive Income or “AOCI”). “). The Tier 1 capital of the subsidiary amounts to $90.05 million from March 31, 2024i.e. 13.57% of weighted assets compared to $79.66 millioni.e. 14.65% of weighted assets as of December 31 March 31, 2023.

CEO David P. Lamb commented: “We have had a good start to 2024, even in a context of continued and increasing economic uncertainty, as evidenced by the daily assessment of interest rate developments by clients and the market. The principles of our strategy remain unchanged, i.e. a disciplined approach. on relationship banking with small and medium-sized businesses while creating additional value for our stakeholders by implementing technology in our operations. We believe this strategy will continue to generate consistent and increasing financial performance that translates into increased shareholder value.

Oxford Bank is a subsidiary of Oxford Bank Corporation, a registered holding company. It is the oldest commercial bank in the Oakland County and operates seven full-service offices in Clarkston, Davison, Dryden, Lake Orion, Oakland Township, OrtonvilleAnd Oxford, Michigan. The Bank also has customer experience centers at Ann Arbor, Macomb And Hills of Rochester, Michigan, with transactional services provided only by interactive ATMs. In addition, Oxford Bank has merchant banking and trade finance centers in Phoenix, Arizona., Wixomdowntown OxfordAnd Flint, Michigan. The bank has operated continuously under local ownership and management since opening in 1884. For more information about Oxford Bank and its full range of financial services, please visit www.oxfordbank.bank.

Except for historical information contained in this release, the matters discussed in the release may be considered forward-looking statements that involve risks and uncertainties. The words or expressions “will likely result”, “should”, “continue”, “is expected”, “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 that could cause actual results to differ include, but are not limited to, fluctuations in interest rates, changes in economic conditions in the Bank’s market area, changes in policies of regulatory agencies, acceptance of new products, the impact of competitive products and pricing and other risks detailed from time to time in the Bank’s and the Company’s reports. These forward-looking statements represent the Bank’s judgment as of the date of this report. However, the Bank disclaims any intention or obligation to update these forward-looking statements.

Contact: David P. Lamb, Chairman, President and CEO
Telephone: (248) 628-2533
Fax: (248) 969-7230

SOURCE Company Bank of Oxford