OXFORD, Mich., Aug. 3 /PRNewswire-FirstCall/ -- Oxford Bank
Corporation ("the Corporation") (OTC Bulletin Board: OXBC), the
holding company for Oxford Bank ("the Bank"), today announced
improved second quarter and six-month operating results for 2010.
The Corporation reported a 2010 second quarter net loss of
$1.241 million, or $1.07 per share, compared to a 2009 second
quarter loss of $1.417 million, or
$1.22 per share. For the
six-month period ending June 30,
2010, the Corporation reported a net loss of $1.217 million, or $1.05 per share, compared to a $1.912 million net loss, or $1.65 per share, for the same period in 2009.
Net interest margin, representing net interest income to average
earning assets, was 3.86-percent in the second quarter of 2010.
Management was able to improve margin during the quarter
despite a decrease in earning assets. This was achieved by
strategically reducing funding costs and maintaining asset yields.
Total interest expense for the second quarter of 2010 was
$0.769 million compared to
$1.554 million for the second quarter
of 2009, a 50.5-percent decline. For the six-months ending
June 30, 2010, interest expense was
$1.618 million compared to
$3.162 million for the same period of
2009, a decrease of $1.544 million.
C. James Bess, president and
chief executive officer of the Corporation, issued the results and
noted, "An adherence to sound pricing strategies on deposits and
loan products during the past twelve months has helped preserve the
earnings capacity of the balance sheet. Despite the on-going
expense burden related to high levels of non-performing loans,
maintenance costs associated with Bank owned property and FDIC
insurance premiums, the core earnings of the Bank remain
strong."
Noninterest expense was $2.662
million for the second quarter of 2010, compared to
$4.344 million for the same quarter
of 2009, a 38.7-percent reduction. For the six months ending
June 30, 2010, total noninterest
expense was $5.246 million, a
$2.898 million decline from the
$8.143 million reported for the same
period of 2009. Mr. Bess explained, "Since June 30, 2009, management has successfully
implemented numerous cost-cutting initiatives that have
substantially reduced our overall operating expenses. As Oxford
Bank continues to experience elevated costs associated with the
credit quality issues of the loan portfolio, it is imperative that
we maintain an aggressive approach to analyzing and controlling the
expense structure of the Bank." Noninterest income for the
second quarter of 2010 was $0.433
million. For the six months ending June 30, 2010, noninterest income was
$0.811 million compared to
$1.993 million for the same period in
2009.
Management also continues to strategically reduce the Bank's
assets to preserve capital and reduce costs. Total assets as of
June 30, 2010 were $305.261 million, a decline of $60.962 million from June
30, 2009. Despite the asset reduction, liquidity remains
strong with a combined total of $86.708
million in cash, cash equivalents and securities.
Oxford Bank is a subsidiary of Oxford Bank Corporation, a
registered holding company. It is the oldest commercial bank
in Oakland County and operates
eight full-service offices in Clarkston, Davison, Dryden, Goodrich, Lake
Orion, Oakland Township,
Ortonville and Oxford. It also manages 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 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
2010
|
2009
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
45,723
|
$
42,886
|
|
|
|
|
Federal funds sold
|
|
-
|
-
|
|
|
|
Total cash and cash
equivalents
|
|
45,723
|
42,886
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
available-for-sale
|
|
34,540
|
50,039
|
|
|
|
|
Securities
held-to-maturity
|
|
5,349
|
6,571
|
|
|
|
|
Federal Home Loan Bank
Stock
|
|
1,096
|
1,096
|
|
|
|
Total securities
|
|
40,985
|
57,706
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio loans
|
|
|
|
|
|
|
|
Consumer loans
|
|
39,501
|
53,742
|
|
|
|
|
Mortgage loans
|
|
59,007
|
71,413
|
|
|
|
|
Commercial loans
|
|
107,699
|
128,067
|
|
|
|
Total loans
|
|
206,207
|
253,222
|
|
|
|
|
Less: Allowance for loan
loss
|
|
11,756
|
9,473
|
|
|
|
Net loans
|
|
194,451
|
243,749
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment,
net
|
|
8,867
|
9,304
|
|
|
|
|
Other real estate
owned
|
|
13,854
|
8,873
|
|
|
|
|
Accrued interest receivable and
other assets
|
|
1,381
|
3,705
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
305,261
|
$
366,223
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
53,769
|
$
60,653
|
|
|
|
|
Interest-bearing
|
|
241,105
|
287,417
|
|
|
|
Total deposits
|
|
294,874
|
348,070
|
|
|
|
|
|
|
|
|
|
|
|
|
Short term borrowings
|
|
89
|
459
|
|
|
|
|
Accrued interest payable, taxes
and other liabilities
|
|
1,936
|
2,276
|
|
|
|
Total Liabilities
|
|
296,899
|
350,805
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, no par value;
10,000,000 shares authorized;
|
|
|
|
|
|
|
|
1,156,690 shares issued and
outstanding
|
|
16,271
|
16,271
|
|
|
|
|
Retained (deficit)
earnings
|
|
(7,940)
|
(1,072)
|
|
|
|
|
Accumulated other comprehensive
income, net of tax
|
|
31
|
219
|
|
|
|
Total shareholders'
equity
|
|
8,362
|
15,418
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
$
305,261
|
$
366,223
|
|
|
|
|
|
|
-
|
-
|
|
|
|
Book value per
share
|
|
$7.23
|
$13.33
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
|
|
2010
|
2009
|
|
2010
|
2009
|
|
|
|
Interest Income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
$
1,725
|
$
2,039
|
|
$
3,527
|
$
4,072
|
|
|
|
|
|
Installment loans
|
|
254
|
438
|
|
534
|
913
|
|
|
|
|
|
Mortgage loans
|
|
825
|
1,085
|
|
1,679
|
2,273
|
|
|
|
|
|
Open end loans
|
|
332
|
376
|
|
677
|
797
|
|
|
|
|
|
Late charges and fees
|
|
46
|
91
|
|
116
|
150
|
|
|
|
Total loan interest and fee
income
|
|
3,182
|
4,029
|
|
6,533
|
8,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
98
|
312
|
|
224
|
741
|
|
|
|
|
|
Tax-exempt
|
|
54
|
117
|
|
112
|
254
|
|
|
|
Total investment
income
|
|
152
|
429
|
|
336
|
995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
|
3,334
|
4,458
|
|
6,869
|
9,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits
|
|
769
|
1,554
|
|
1,618
|
3,162
|
|
|
|
|
Interest on borrowed
funds
|
|
-
|
-
|
|
-
|
-
|
|
|
|
Total interest
expense
|
|
769
|
1,554
|
|
1,618
|
3,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
|
2,565
|
2,904
|
|
5,251
|
6,038
|
|
|
|
|
Provision for loan
losses
|
|
1,577
|
1,000
|
|
2,033
|
1,800
|
|
|
|
Net Interest Income After
Provision for Loan Losses
|
|
988
|
1,904
|
|
3,218
|
4,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
Service charge income
|
|
274
|
350
|
|
557
|
676
|
|
|
|
|
Mortgage banking
activities
|
|
12
|
65
|
|
35
|
243
|
|
|
|
|
Other income
|
|
147
|
608
|
|
219
|
1,074
|
|
|
|
Total noninterest
income
|
|
433
|
1,023
|
|
811
|
1,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
1,047
|
1,563
|
|
2,156
|
3,122
|
|
|
|
|
Occupancy expense
|
|
182
|
257
|
|
411
|
686
|
|
|
|
|
Equipment expense
|
|
102
|
120
|
|
207
|
236
|
|
|
|
|
Other Loan Expense
|
|
445
|
890
|
|
698
|
1,521
|
|
|
|
|
FDIC Insurance
|
|
367
|
592
|
|
745
|
961
|
|
|
|
|
Other expense
|
|
519
|
922
|
|
1,029
|
1,617
|
|
|
|
Total noninterest
expense
|
|
2,662
|
4,344
|
|
5,246
|
8,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Before Income
Taxes
|
|
(1,241)
|
(1,417)
|
|
(1,217)
|
(1,912)
|
|
|
|
|
Income tax recovery
|
|
-
|
-
|
|
-
|
-
|
|
|
|
Net Loss
|
|
$
(1,241)
|
$
(1,417)
|
|
$
(1,217)
|
$
(1,912)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per Share -
Basic
|
|
$
(1.07)
|
$
(1.22)
|
|
$
(1.05)
|
$
(1.65)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oxford Bank
Corporation
|
|
|
Financial Summary and Selected
Ratios (Unaudited)
|
|
|
(Dollars in thousands except per
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date
|
|
|
|
|
|
|
June 30,
|
|
Change
|
|
|
|
|
|
|
2010
|
2009
|
|
Amount
|
Percentage
|
|
|
|
Financial Summary
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
$
6,869
|
$
9,200
|
|
$
(2,331)
|
-25.3%
|
|
|
|
|
Interest Expense
|
|
1,618
|
3,162
|
|
(1,544)
|
-48.8%
|
|
|
|
Net Interest Income
|
|
5,251
|
6,038
|
|
(786)
|
-13.0%
|
|
|
|
|
Provision for loan
loss
|
|
2,033
|
1,800
|
|
233
|
12.9%
|
|
|
|
|
Noninterest income
|
|
811
|
1,993
|
|
(1,183)
|
-59.3%
|
|
|
|
|
Noninterest expense
|
|
5,246
|
8,143
|
|
(2,898)
|
-35.6%
|
|
|
|
Loss before Income
Taxes
|
|
(1,217)
|
(1,912)
|
|
695
|
36.4%
|
|
|
|
|
Income tax recovery
|
|
-
|
-
|
|
-
|
0.0%
|
|
|
|
Net Loss
|
|
$
(1,217)
|
$
(1,912)
|
|
$
695
|
36.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
Data
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
305,261
|
366,223
|
|
(60,962)
|
-16.6%
|
|
|
|
Earning assets
|
|
247,192
|
310,928
|
|
(63,736)
|
-20.5%
|
|
|
|
Total loans
|
|
206,207
|
253,222
|
|
(47,015)
|
-18.6%
|
|
|
|
Allowance for loan
loss
|
|
11,756
|
9,473
|
|
2,283
|
24.1%
|
|
|
|
Total deposits
|
|
294,874
|
348,070
|
|
(53,196)
|
-15.3%
|
|
|
|
Other borrowings
|
|
89
|
459
|
|
(370)
|
-80.6%
|
|
|
|
Shareholders' equity
|
|
8,362
|
15,418
|
|
(7,056)
|
-45.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
Other real estate
owned
|
|
13,854
|
8,873
|
|
4,981
|
56.1%
|
|
|
|
Net charge-offs
|
|
3,127
|
2,991
|
|
136
|
4.6%
|
|
|
|
Non-accrual loans
|
|
13,654
|
11,540
|
|
2,114
|
18.3%
|
|
|
|
Nonperforming assets
|
|
27,507
|
20,413
|
|
7,094
|
34.8%
|
|
|
|
Non-accrual loans / total
loans
|
|
6.62%
|
4.56%
|
|
2.06%
|
45.3%
|
|
|
|
Allowance for loan loss / total
loans
|
|
5.70%
|
3.74%
|
|
1.96%
|
52.4%
|
|
|
|
Allowance for loan loss /
non-accrual loans
|
|
86.10%
|
82.09%
|
|
4.01%
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Measurements
|
|
|
|
|
|
|
|
|
|
Net interest margin (tax
equivalent)
|
|
3.86%
|
3.86%
|
|
0.00%
|
0.0%
|
|
|
|
Return on average assets
(annualized)
|
|
-0.61%
|
-0.81%
|
|
0.20%
|
24.7%
|
|
|
|
Return on average equity
(annualized)
|
|
-21.4%
|
-17.4%
|
|
-3.9%
|
-22.5%
|
|
|
|
Equity / Assets
|
|
2.7%
|
4.2%
|
|
-1.5%
|
-34.9%
|
|
|
|
Loans / Deposits
|
|
69.9%
|
72.8%
|
|
-2.8%
|
-3.9%
|
|
|
|
Book Value
|
|
$
7.23
|
$
13.33
|
|
$
(6.10)
|
-45.8%
|
|
|
|
Loss per share -
Basic
|
|
$
(1.05)
|
$
(1.65)
|
|
$
0.60
|
36.4%
|
|
|
|
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
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
|
|
|
|
2010
|
|
2010
|
|
2009
|
|
2009
|
|
2009
|
|
|
Financial Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
$
3,334
|
|
$
3,535
|
|
$
3,777
|
|
$
3,995
|
|
$
4,458
|
|
|
|
Interest Expense
|
|
769
|
|
848
|
|
1,109
|
|
1,346
|
|
1,554
|
|
|
Net Interest Income
|
|
2,565
|
|
2,687
|
|
2,668
|
|
2,649
|
|
2,904
|
|
|
|
Provision for loan
loss
|
|
1,577
|
|
456
|
|
2,591
|
|
4,961
|
|
1,000
|
|
|
|
Noninterest income
|
|
433
|
|
377
|
|
970
|
|
469
|
|
1,023
|
|
|
|
Noninterest expense
|
|
2,662
|
|
2,584
|
|
4,346
|
|
3,676
|
|
4,344
|
|
|
Loss before Income
Taxes
|
|
(1,241)
|
|
24
|
|
(3,299)
|
|
(5,519)
|
|
(1,417)
|
|
|
|
Income tax expense
(recovery)
|
|
-
|
|
-
|
|
(3,166)
|
|
-
|
|
-
|
|
|
Net Loss
|
|
$
(1,241)
|
|
$
24
|
|
$
(133)
|
|
$
(5,519)
|
|
$
(1,417)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
305,261
|
|
314,665
|
|
327,111
|
|
345,045
|
|
366,223
|
|
|
Earning assets
|
|
247,192
|
|
267,997
|
|
278,452
|
|
298,061
|
|
312,092
|
|
|
Total loans
|
|
206,207
|
|
218,302
|
|
227,949
|
|
240,924
|
|
253,222
|
|
|
Allowance for loan
loss
|
|
11,756
|
|
12,000
|
|
12,850
|
|
13,000
|
|
9,473
|
|
|
Total deposits
|
|
294,874
|
|
302,872
|
|
315,195
|
|
332,865
|
|
348,070
|
|
|
Other borrowings
|
|
89
|
|
218
|
|
414
|
|
170
|
|
459
|
|
|
Shareholders' equity
|
|
8,362
|
|
9,606
|
|
9,510
|
|
10,069
|
|
15,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned
|
|
13,854
|
|
10,494
|
|
9,862
|
|
11,374
|
|
8,873
|
|
|
Net charge-offs
|
|
1,821
|
|
1,306
|
|
2,741
|
|
1,434
|
|
1,572
|
|
|
Non-accrual loans
|
|
13,654
|
|
16,466
|
|
17,984
|
|
18,954
|
|
11,540
|
|
|
Nonperforming assets
|
|
27,507
|
|
26,960
|
|
27,847
|
|
30,328
|
|
20,413
|
|
|
Non-accrual loans / total
loans
|
|
6.62%
|
|
7.54%
|
|
7.89%
|
|
7.87%
|
|
4.56%
|
|
|
Allowance for loan loss / total
loans
|
|
5.70%
|
|
5.50%
|
|
5.64%
|
|
5.40%
|
|
3.74%
|
|
|
Allowance for loan loss /
non-accrual loans
|
|
86.10%
|
|
72.88%
|
|
71.45%
|
|
68.59%
|
|
82.09%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Measurements
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (tax
equivalent)
|
|
3.86%
|
|
3.85%
|
|
3.58%
|
|
3.46%
|
|
3.75%
|
|
|
Return on average assets
(annualized)
|
|
-1.54%
|
|
0.03%
|
|
-0.16%
|
|
-5.98%
|
|
-1.56%
|
|
|
Return on average equity
(annualized)
|
|
-55.1%
|
|
1.1%
|
|
-5.6%
|
|
-150.7%
|
|
-34.3%
|
|
|
Equity / Assets
|
|
2.7%
|
|
3.1%
|
|
2.9%
|
|
2.9%
|
|
4.2%
|
|
|
Loans / Deposits
|
|
69.9%
|
|
72.1%
|
|
72.3%
|
|
72.4%
|
|
72.8%
|
|
|
Book Value
|
|
$
7.23
|
|
$
8.30
|
|
$
8.22
|
|
$
8.71
|
|
$
13.33
|
|
|
Loss per share -
Basic
|
|
$
(1.07)
|
|
$
0.02
|
|
$
(0.12)
|
|
$
(4.77)
|
|
$
(1.22)
|
|
|
Shares Outstanding
|
|
1,156,690
|
|
1,156,690
|
|
1,156,690
|
|
1,156,690
|
|
1,156,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Oxford Bank Corporation
Copyright g. 3 PR Newswire