Oxford Bank Corp. (OXBC)

[Enterprising Investor]

Oxford Bank Corporation Announces Fourth Quarter and Full Year 2013 Operating Results (4/07/14)

Oxford, Michigan – Oxford Bank Corporation (“the Company”) (OTC Bulletin Board: OXBC), the holding company for Oxford Bank (“the Bank”), today announced profitable operating results for 2013.
The Company recorded fourth quarter, 2013 consolidated loss of -$207,000, or -$0.18 per share, compared to earnings of $1,387,000, or $1.20 per share during the fourth quarter of 2012. The loss was the result of aggressive write-downs of Bank owned properties. Fourth quarter 2013 core profits totaled $382,000 vs. $503,000 for the same period one year ago. Full year operating results for 2013 totaled $1,416,000, or $1.22 per share compared to $2,812,000, or $2.43 per share during 2012. Year-end 2013 core profits totaled $2,017,000 compared to $1,929,000 for all of 2012. The Bank subsidiary has now been profitable on a core earnings basis for the past twelve quarters and continues to show improvement in its asset quality and operating results.

The Board of Directors continues to identify and target qualified investors to assist in the Bank’s capital restoration plan. With the right mix of investor participation and continued earnings growth, it is expected that the Bank should achieve a Tier I Capital to Average Assets ratio of 8.00% by the end of 2015. The Bank’s Tier I capital account totaled $15,258,000 as of December 31, 2013, or 5.95% of average total assets compared to a low of $7,100,000, or 2.44% as of October of 2010. The Bank has continued to gradually build capital through earnings, operating efficiencies, and strategic balance sheet management, but seeks to raise additional contributed capital as part of its capital restoration plan. Management estimates that an additional $5.3 million of earnings, capital contribution, or combination thereof, is needed to achieve an 8% capital ratio. Management is cautiously optimistic that this goal can be achieved by the end of 2015.

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 and commercial lending center in downtown Oxford. 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.