OXFORD, Mich., April 24 /PRNewswire-FirstCall/ -- Oxford Bank
Corporation (OTC:OXBC) (BULLETIN BOARD: OXBC) , the holding company
for Oxford Bank ("the Bank"), today announced a 51.4-percent
improvement in operating results for the first quarter ending March
31, 2009. A net loss of $495,000, or $0.43 per share, was reported,
compared to a net loss of $1,019,000, or $0.88 per share, for the
same three-month period in 2008. The Corporation continued to
report strong net interest income, despite a strategic $95 million
reduction in earning assets during the past twelve months. Net
interest income for the first quarter of 2009 was $3,135,000,
compared to $3,320,000 in the first quarter of 2008. The Bank's
net-interest margin and spread also experienced significant
improvement over the prior year. As of March 31, 2009, net-interest
margin and spread were 3.98% and 3.71%, respectively. This was
achieved by successfully executing the Bank's pricing strategy and
reducing high-priced, non-core deposits. In addition, the liquidity
position of the Bank remains strong and continues to provide
strength to the organization. Net revenue (interest income plus
non-interest income) during the first quarter was $5,712,000.
Jeffrey M. Davidson, chairman, president, and chief executive
officer of the Corporation, issued the results and commented, "The
Corporation has not yet returned to profitability due, in large
part, to the issues that still remain within our residential home
mortgage portfolio and the costs associated with the maintenance
and sale of foreclosed properties. However, positive trends are
materializing as a result of nearly two years of aggressive,
sustained efforts to reduce expenses and improve asset quality. As
a result of the cost reduction initiative implemented by management
in 2008, the Bank has been able to improve the operating efficiency
of the organization and reduce non interest expense by
approximately $600,000 during the first quarter of 2009." Davidson
went on to say, "Our efforts to mitigate the effects of the local
economy on our overall loan portfolio has produced positive results
relative to last year, including a 24.6-percent reduction in
nonperforming assets, a 44.8-percent decrease in net charge-offs,
and a 43.9-percent decline in non-accrual loans. Furthermore, the
Bank has significantly improved the coverage of the allowance for
loan loss to provide additional protection against further
deterioration in the loan portfolio." Davidson concluded, "The
difficulties of the past 18 months, and our employees' efforts to
meet and overcome these challenges, have made our 125-year old
institution stronger and more efficient. Their hard work,
determination, and sacrifices have reshaped Oxford Bank for the
better. However, there is more to be done. While we continue to
experience improvements in asset quality, margin, and liquidity, we
are focused on returning to profitability." Oxford Bank is a
subsidiary of Oxford Bank Corporation, a registered holding
company. It is the oldest commercial bank in Oakland County,
celebrating its 125th anniversary in 2009. It operates eight
full-service offices in Clarkston, Davison, Dryden, Goodrich, Lake
Orion, Oakland Township, Ortonville and Oxford, along with managing
a consumer lending center in Oxford and a commercial banking office
in Lake Orion. 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 http://www.oxfordbank.com/
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, --------- 2009 2008 ---- ---- ASSETS
------ Cash and due from banks $27,553 $12,208 Interest-bearing
deposits with banks 1,250 718 Federal funds sold - 32,070 - ------
Total cash and cash equivalents 28,803 44,996 Securities
available-for-sale 46,417 48,856 Securities held-to-maturity 8,824
13,560 Other securities 1,096 1,096 ----- ----- Total securities
56,336 63,512 Portfolio loans Consumer loans 57,654 72,558 Mortgage
loans 74,213 101,648 Commercial Loans 131,564 145,931 -------
------- Total loans 263,431 320,137 Less allowance for loan loss
10,045 8,423 ------ ----- Net loans 253,386 311,714 Bank premises
and equipment, net 9,306 9,544 Other real estate owned 9,743 7,160
Accrued interest receivable and other assets 3,742 7,529 -----
----- TOTAL ASSETS $361,315 $444,455 ======== ======== LIABILITIES
----------- Deposits Non-interest bearing $56,170 $60,630 Interest
bearing 285,397 344,117 ------- ------- Total deposits 341,567
404,747 Short term borrowings 468 538 Accrued interest payable,
taxes and other liabilities 2,129 2,105 ----- ----- Total
Liabilities 344,164 407,390 SHAREHOLDERS' EQUITY
-------------------- Common stock, no par value; 3,200,000 shares
authorized; 1,156,690 shares issued and outstanding 16,271 16,271
Retained earnings 346 20,034 Accumulated other comprehensive
income/(loss), net of tax 534 760 --- --- Total shareholders'
equity 17,151 37,065 ------ ------ TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $361,315 $444,455 ======== ======== - - Book
value per share $14.83 $32.04 Oxford Bank Corporation Consolidated
Statement of Income (Unaudited) (Dollars in thousands except per
share data) Year to Date ------------ March 31, March 31, 2009 2008
---- ---- Interest Income --------------- Interest and fees on
loans Commercial loans $2,033 $2,422 Installment loans 475 737
Mortgage loans 1,188 1,554 Open end loans 421 582 Late charges and
fees 59 101 -- --- Total loan interest and fee income 4,176 5,396
Interest on investment securities Taxable 429 447 Tax-exempt 136
187 --- --- Total investment income 566 634 Federal funds sold -
383 - --- Total interest income 4,742 6,413 Interest Expense
---------------- Interest on deposits 1,608 3,091 Interest on
borrowed funds - 2 - - Total interest expense 1,608 3,093 -----
----- Net Interest Income 3,135 3,320 Provision for loan losses 800
1,300 --- ----- Net Interest Income After Provision for Loan Losses
2,335 2,020 Noninterest Income ------------------ Service charge
income 326 362 Income from loan sales 178 150 Other income 466 187
--- --- Total noninterest income 970 699 Noninterest Expense
------------------- Salaries and employee benefits 1,560 1,749
Occupancy expense 429 413 Equipment expense 117 111 Other expense
1,695 2,125 ----- ----- Total noninterest expense 3,800 4,398
Income (Loss) Before Income Taxes (495) (1,679) Income tax expense
(recovery) - (660) - ---- Net Income (Loss) $(495) $(1,019) =====
======= Earnings (Loss) per Share - basic $(0.43) $(0.88) Oxford
Bank Corporation Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data) Year to Date
------------ March 31, Change --------- ------ 2009 2008 Amount
Percentage ---- ---- ------ ---------- Financial Summary Interest
Income $4,742 $6,413 $(1,671) -26.1% Interest Expense 1,608 3,093
(1,486) -48.0% ----- ----- ------ Net Interest Income 3,135 3,320
(185) -5.6% Provision for loan loss 800 1,300 (500) -38.5%
Noninterest income 970 699 271 38.9% Noninterest expense 3,800
4,398 (598) -13.6% ----- ----- ---- Income (Loss) before Income
Taxes (495) (1,679) 1,184 70.5% Income tax expense (recovery) -
(660) 660 100.0% - ---- --- Net Income (Loss) $(495) $(1,019) $524
51.4% ===== ======= ==== Balance Sheet Data Total assets 361,315
444,455 (83,140) -18.7% Earning assets 321,017 416,437 (95,421)
-22.9% Total loans 263,431 320,137 (56,706) -17.7% Allowance for
loan loss 10,045 8,423 1,622 19.3% Total deposits 341,567 404,747
(63,180) -15.6% Other borrowings 468 538 (69) -12.9% Shareholders'
equity 17,151 37,065 (19,914) -53.7% Asset Quality Other real
estate owned 9,743 7,160 2,583 36.1% Net charge-offs 1,419 2,569
(1,150) -44.8% Non-accrual loans 12,553 22,392 (9,839) -43.9%
Nonperforming assets 22,296 29,552 (7,256) -24.6% Non-accrual loans
/ total loans 4.77% 6.99% -2.23% -31.9% Allowance for loan loss /
total loans 3.81% 2.63% 1.18% 44.9% Allowance for loan loss /
non-accrual loans 80.02% 37.62% 42.41% 112.7% Performance
Measurements Net interest margin (tax equivalent) 3.98% 3.20% 0.78%
24.4% Return on average assets (annualized) -0.55% -0.90% 0.35%
38.9% Return on average equity (annualized) -11.5% -11.0% -0.5%
-5.0% Equity / Assets 4.7% 8.3% -3.6% -43.1% Loans / Deposits 77.1%
79.1% -2.0% -2.5% Book Value $14.83 $32.04 $(17.22) -53.7% Earnings
(Loss) per share - basic $(0.43) $(0.88) $0.45 51.4% Shares
Outstanding 1,156,690 1,156,690 - 0.0% Oxford Bank Corporation
Financial Summary and Selected Ratios (Unaudited) (Dollars in
thousands except per share data) Quarter Ended ------------- March
December September June March 31, 31, 30, 30, 31, 2009 2008 2008
2008 2008 ---- ---- ---- ---- ---- Financial Summary Interest
Income $4,742 $5,086 $5,422 $5,878 $6,413 Interest Expense 1,608
1,664 1,808 2,272 3,093 ----- ----- ----- ----- ----- Net Interest
Income 3,135 3,422 3,614 3,606 3,320 Provision for loan loss 800
7,300 5,625 3,075 1,300 Noninterest income 970 826 648 594 699
Noninterest expense 3,800 5,484 3,867 4,116 4,398 ----- ----- -----
----- ----- Income (Loss) before Income Taxes (495) (8,537) (5,230)
(2,991) (1,679) Income tax expense (recovery) - 5,348 (1,835)
(1,077) (660) ----- ----- ------ ------ ---- Net Income (Loss)
$(495) $(13,885) $(3,395) $(1,914) $(1,019) ===== ======== =======
======= ======= Balance Sheet Data Total assets 361,315 362,557
375,986 406,101 444,455 Earning assets 321,017 332,708 349,224
377,444 416,437 Total loans 263,431 273,892 286,872 301,537 320,137
Allowance for loan loss 10,045 10,664 8,113 6,095 8,423 Total
deposits 341,567 340,900 341,814 370,334 404,747 Other borrowings
468 1,258 814 1,134 538 Shareholders' equity 17,151 17,834 31,229
34,555 37,065 Asset Quality Other real estate owned 9,743 6,873
6,210 6,807 7,160 Net charge-offs 1,419 4,734 3,621 5,404 2,569
Non-accrual loans 12,553 15,408 17,024 14,960 22,392 Nonperforming
assets 22,296 22,281 23,233 21,767 29,552 Non-accrual loans / total
loans 4.77% 5.63% 5.93% 4.96% 6.99% Allowance for loan loss / total
loans 3.81% 3.89% 2.83% 2.02% 2.63% Allowance for loan loss /
non-accrual loans 80.02% 69.21% 47.66% 40.74% 37.62% Performance
Measurements Net interest margin (tax equivalent) 3.98% 4.06% 4.03%
3.78% 3.20% Return on average assets (annualized) -0.55% -15.33%
-3.45% -1.83% -0.90% Return on average equity (annualized) -11.5%
-203.4% -40.8% -21.0% -11.0% Equity / Assets 4.7% 4.9% 8.3% 8.5%
8.3% Loans / Deposits 77.1% 80.3% 83.9% 81.4% 79.1% Book Value
$14.83 $15.42 $27.00 $29.87 $32.04 Earnings (Loss) per share -
basic $(0.43) $(12.00) $(2.94) $(1.65) $(0.88) Shares Outstanding
1,156,690 1,156,690 1,156,690 1,156,690 1,156,690 DATASOURCE:
Oxford Bank Corporation CONTACT: Anthony P. Lasher,
+1-248-628-2533, Fax:, +1-248-969-7230 Web Site:
http://www.oxfordbank.com/
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