Oxford Bank Corp. (OXBC)

[Enterprising Investor]

Management has become more optimistic in eight days.

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.

The Bank’s Tier I capital totals $16,169,000 as of March 31, 2014, or 6.08% 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. In addition, Management is currently pursuing alternative opportunities which it hopes will result in the fulfillment of its regulatory capital requirements by the end of 2014.