OXFORD, Mich., July 17 /PRNewswire-FirstCall/ -- Oxford Bank
Corporation (OTC:OXBC) (BULLETIN BOARD: OXBC) , the holding company
for Oxford Bank, today announced improved total operating results
for the second quarter and first half of 2009. In the second
quarter, the Corporation posted a net loss of $1,417,000 or $1.22
per share. This represents a 26.0-percent improvement over the net
loss of $1,914,000 or $1.65 per share reported for the same
three-month period in 2008. During the first six months of the
year, operating results increased 34.8-percent to a net loss of
$1,912,000 or $1.65 per share compared to $2,933,000 or $2.54 per
share for the same period in 2008. The on-going strategic decision
by management to manage the Bank's overall size has resulted in a
$65 million reduction in earning assets during the past twelve
months and a $20 million reduction since the beginning of 2009.
Despite this initiative, however, the Corporation continues to
exhibit solid returns in revenues (interest income plus
non-interest income) and net-interest income, due, in part, to
significant reductions in interest-related expenses. Net-interest
income for the second quarter was $2,903,000, weighted against the
$3,606,000 reported during the same period in 2008. For the
six-month period ended June 30, 2009, net-interest income was
$6,038,000 versus $6,926,000 last year. Net revenue for the quarter
was $5,481,000; compared to the $5,712,000 garnered in the first
quarter of the year and the $6,472,000 registered during the second
quarter of 2008. For the year, the Bank has posted net revenue of
$11,193,000 compared to $13,584,000 in 2008. C. James Bess,
president and chief executive officer of the Corporation, issued
the results and commented, "The Bank continues to be challenged by
the quality of the loan portfolio and associated expenses. In spite
of an unprecedented economic environment, there has been some
notable improvement in the degree of loan losses on a year-to-year
basis. Although the Bank's net-interest margin (interest income vs.
interest expense) and liquidity (cash and readily marketable
securities) has remained stable and very good respectively,
operating results reflect a negative impact to income as well as
retained earnings. The costs related to maintaining and disposing
of foreclosed homes and land in OREO (other real-estate owned),
coupled with the costs of FDIC insurance, represent a formidable
obstacle as we look to strengthen the Bank's capital position and
return to profitability. Over the next six months, it will be
essential that we continue to aggressively reduce expenses and
manage the asset base in hopes of achieving our strategic goals. In
the same vein, the Board and management will continue to thoroughly
explore options for attaining new sources of capital." Oxford Bank
Corporation is a registered holding company. Its subsidiary, Oxford
Bank, is the oldest commercial bank in Oakland County, celebrating
its 125th year in 2009. The Bank was recently voted the Best Bank
in Oakland County by the readers of the Oakland Press and has
earned the 1st Place Readers Choice for Best Bank by the readers of
the Clarkston News (July, 2009), and Oxford Leader and the Lake
Orion Review (December, 2008). It operates eight full-service
offices in Clarkston, Davison, Dryden, Goodrich, Lake Orion,
Oakland Township, Ortonville and Oxford, along with 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
Statement of Income (Unaudited) (Dollars in thousands except per
share data) Quarter to Date Year to Date ---------------
------------ June 30, June 30, -------- -------- 2009 2008 2009
2008 ---- ---- ---- ---- Interest Income --------------- Interest
and fees on loans Commercial loans $2,039 $2,379 $4,072 $4,802
Installment loans 437 660 913 1,398 Mortgage loans 1,085 1,449
2,273 3,003 Open end loans 376 513 797 1,094 Late charges and fees
92 77 150 177 -- -- --- --- Total loan interest and fee income
4,029 5,078 8,206 10,474 Interest on investment securities Taxable
312 541 741 988 Tax-exempt 117 172 254 359 --- --- --- --- Total
investment income 429 713 995 1,347 Federal funds sold - 87 - 470 -
-- - --- Total interest income 4,458 5,878 9,200 12,291 Interest
Expense ---------------- Interest on deposits 1,554 2,271 3,162
5,362 Interest on borrowed funds 0 1 0 3 - - - - Total interest
expense 1,554 2,272 3,162 5,365 ----- ----- ----- ----- Net
Interest Income 2,903 3,606 6,038 6,926 Provision for loan losses
1,000 3,075 1,800 4,375 ----- ----- ----- ----- Net Interest Income
After Provision for Loan Losses 1,903 531 4,238 2,551 Noninterest
Income ------------------ Service charge income 350 400 676 762
Income from loan sales 65 100 243 250 Other income 609 94 1,075 281
--- -- ----- --- Total noninterest income 1,023 594 1,993 1,293
Noninterest Expense ------------------- Salaries and employee
benefits 1,563 1,640 3,122 3,388 Occupancy expense 257 312 686 725
Equipment expense 120 107 236 218 Other Loan Expense 890 874 1,521
1,883 Other expense 1,514 1,183 2,578 2,300 ----- ----- ----- -----
Total noninterest expense 4,343 4,116 8,143 8,514 Income (Loss)
Before Income Taxes (1,417) (2,991) (1,912) (4,670) Income tax
expense (benefit) - (1,077) - (1,737) - ------- - ------- Net
Income (Loss) $(1,417) $(1,914) $(1,912) $(2,933) ======= =======
======= ======= Earnings (Loss) per Share - basic $(1.22) $(1.65)
$(1.65) $(2.54) Oxford Bank Corporation Consolidated Balance Sheet
(Unaudited) (Dollars in thousands except per share data) June 30,
-------- 2009 2008 ---- ---- ASSETS ------ Cash and due from banks
$41,122 $11,736 Interest-bearing deposits with banks 1,765 736
Federal funds sold - 13,280 - ------ Total cash and cash
equivalents 42,886 25,752 Securities available-for-sale 50,039
50,287 Securities held-to-maturity 6,571 10,509 Other securities
1,096 1,096 ----- ----- Total securities 57,705 61,892 Portfolio
loans Consumer loans 53,742 66,751 Mortgage loans 71,413 93,104
Commercial Loans 128,067 141,682 ------- ------- Total loans
253,222 301,537 Less allowance for loan loss 9,473 6,095 -----
----- Net loans 243,749 295,442 Bank premises and equipment, net
9,304 9,446 Other real estate owned 8,873 6,807 Accrued interest
receivable and other assets 3,705 6,762 ----- ----- TOTAL ASSETS
$366,222 $406,101 ======== ======== LIABILITIES -----------
Deposits Non-interest bearing $60,653 $62,900 Interest bearing
287,417 307,434 ------- ------- Total deposits 348,069 370,334
Short term borrowings 459 1,134 Accrued interest payable, taxes and
Other liabilities 2,276 78 ----- -- Total Liabilities 350,804
371,546 SHAREHOLDERS' EQUITY -------------------- Common stock, no
par value; 10,000,000 and 3,200,000 shares authorized; 1,156,690
shares issued and outstanding 16,271 16,271 Retained earnings
(1,071) 18,120 Accumulated other comprehensive income/(loss), net
of tax 219 164 --- --- Total shareholders' equity 15,418 34,555
------ ------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $366,222
$406,101 ======== ======== Book value per share $13.33 $29.87
Oxford Bank Corporation Financial Summary and Selected Ratios
(Unaudited) (Dollars in thousands except per share data) Year to
Date ------------ June 30, Change -------- ------ 2009 2008 Amount
Percentage ---- ---- ------ ---------- Financial Summary Interest
Income $9,200 $12,291 $(3,090) -25.1% Interest Expense 3,162 5,365
(2,203) -41.1% ----- ----- ------- Net Interest Income 6,038 6,926
(888) -12.8% Provision for loan loss 1,800 4,375 (2,575) -58.9%
Noninterest income 1,993 1,293 700 54.2% Noninterest expense 8,143
8,514 (370) -4.3% ----- ----- ----- Income (Loss) before Income
Taxes (1,912) (4,670) 2,758 59.1% Income tax expense (recovery) -
(1,737) 1,737 100.0% - ------- ----- Net Income (Loss) $(1,912)
$(2,933) $1,021 34.8% ======= ======= ====== Balance Sheet Data
Total assets 366,222 406,101 (39,879) -9.8% Earning assets 312,692
377,444 (64,752) -17.2% Total loans 253,222 301,537 (48,315) -16.0%
Allowance for loan loss 9,473 6,095 3,378 55.4% Total deposits
348,069 370,334 (22,265) -6.0% Other borrowings 459 1,134 (675)
-59.5% Shareholders' equity 15,418 34,555 (19,137) -55.4% Asset
Quality Other real estate owned 8,873 6,807 2,067 30.4% Net
charge-offs 2,991 7,972 (4,981) -62.5% Non-accrual loans 11,540
14,960 (3,420) -22.9% Nonperforming assets 20,413 21,767 (1,353)
-6.2% Non-accrual loans / total loans 4.56% 4.96% -0.40% -8.1%
Allowance for loan loss / total loans 3.74% 2.02% 1.72% 85.1%
Allowance for loan loss / non-accrual loans 82.09% 40.74% 41.35%
101.5% Performance Measurements Net interest margin (tax
equivalent) 3.86% 3.48% 0.38% 10.9% Return on average assets
(annualized) -0.81 -1.34% 0.53% 39.6% Return on average equity
(annualized) -17.4% -15.9% -1.5% -9.4% Equity / Assets 4.2% 8.5%
-4.3% -50.5% Loans / Deposits 72.8% 81.4% -8.7% -10.7% Book Value
$13.33 $29.87 $(16.54) -55.4% Earnings (Loss) per share - basic
$(1.65) $(2.54) $0.88 34.8% 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 ------------- June 30, March 31, Dec. 31, Sept. 30,
June 30, 2009 2009 2008 2008 2008 ---- ---- ---- ---- ----
Financial Summary Interest Income $4,458 $4,742 $5,086 $5,422
$5,878 Interest Expense 1,554 1,608 1,664 1,808 2,272 ----- -----
----- ----- ----- Net Interest Income 2,903 3,135 3,422 3,614 3,606
Provision for loan loss 1,000 800 7,300 5,625 3,075 Noninterest
Income 1,023 970 826 648 594 Noninterest expense 4,343 3,800 5,484
3,867 4,116 ----- ----- ----- ----- ----- Income (Loss) before
Income Taxes (1,417) (495) (8,537) (5,230) (2,991) Income tax
expense (recovery) - - 5,348 (1,835) (1,077) - - ----- -------
------- Net Income (Loss) $(1,417) $(495) $(13,885) $(3,395)
$(1,914) ======= ===== ======== ======= ======= Balance Sheet Data
Total assets 366,222 361,315 362,557 375,986 406,101 Earning assets
312,692 321,017 332,708 349,224 377,444 Total loans 253,222 263,431
273,892 286,872 301,537 Allowance for loan loss 9,473 10,045 10,664
8,113 6,095 Total deposits 348,069 341,567 340,900 341,814 370,334
Other borrowings 459 468 1,258 814 1,134 Shareholders' equity
15,418 17,151 17,834 31,229 34,555 Asset Quality Other real estate
owned 8,873 9,743 6,873 6,210 6,807 Net charge-offs 1,572 1,419
4,734 3,621 5,404 Non-accrual loans 11,540 12,553 15,408 17,024
14,960 Nonperforming assets 20,413 22,296 22,281 23,233 21,767
Non-accrual loans / Total loans 4.56% 4.77% 5.63% 5.93% 4.96%
Allowance for loan loss / total loans 3.74% 3.81% 3.89% 2.83% 2.02%
Allowance for loan loss / non-accrual loans 82.09% 80.02% 69.21%
47.66% 40.74% Performance Measurements Net interest margin (tax
equivalent) 3.75% 3.98% 4.06% 4.03% 3.78% Return on average assets
(annualized) -1.56% -0.55% -15.33% -3.45% -1.83% Return on average
equity (annualized) -34.3% -11.5% -203.4% -40.8% -21.0% Equity /
Assets 4.2% 4.7% 4.9% 8.3% 8.5% Loans / Deposits 72.8% 77.1% 80.3%
83.9% 81.4% Book Value $13.33 $14.83 $15.42 $27.00 $29.87 Earnings
(Loss) per share - basic $(1.22) $(0.43) $(12.00) $(2.94) $(1.65)
Shares Outstanding 1,156,690 1,156,690 1,156,690 1,156,690
1,156,690 DATASOURCE: Oxford Bank Corporation CONTACT: CONTACT:
Anthony P. Lasher of Oxford Bank Corporation, +1-248-628-2533, Fax:
+1-248-969-7230 Web Site: http://www.oxfordbank.com/
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