Oxford Bank Corp. (OXBC)

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OXFORD BANK CORPORATION ANNOUNCES FOURTH QUARTER 2019 OPERATING RESULTS

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 the fourth quarter and year-to-date period ended December 31, 2019.

The Company’s quarterly consolidated earnings for the three months ended December 30, 2019 were $1,545,000, or $0.67 per weighted average share compared to $931,000, or $0.41 per weighted average share for the same period one year ago. Year-to-date earnings as of December 31 were $5,276,000 or $2.31 per share for 2019 vs $3,997,000 or $1.75 for 2018.

Total Assets of the Company grew to $505.4 million as of December 31, 2019 compared to $457.4 million as of December 31, 2018, representing a 10.5% increase year-over-year.
The Company increased loans outstanding to $338.1 million at the end of December 2019 compared to $319.4 million a year earlier. Deposit balances from customers increased 9.9% year-over-year and totaled $456.0 million as of December 31, 2019 compared to $415.1 million as of December 31, 2018.

The Company’s total stockholders’ equity increased to $46.6 million as of December 31, 2019, representing book value per share of $20.37 compared to total stockholders’ equity of $40.3 million, or $17.61 per share one year earlier. The subsidiary Bank’s Tier 1 capital totaled $46.1 million as of December 31, 2019, or 12.78% of risk weighted assets compared to $40.6 million or 11.83% of risk weighted assets as of December 31, 2018.

“Our significantly improved performance across the board is a direct result of our team’s outstanding engagement and focus. Our year over year revenue growth is highlighted by a 12.7% increase in noninterest income and 9.4% increase in net interest income. Noninterest income year over year fourth quarter was up 54.9% due to SBA gains and interest rate swap fees although reflects work done in the previous three quarters, too.” President and CEO David Lamb noted. He further added “Growth in our balance sheet led by deposits up 9.9% year over year continues to exemplify the incredible teamwork between Personal Banking and Business Banking teams.
Our loans grew less than desired however we focus on sustainability which starts with asset quality. Our team further shined in their hard work to create a more effective team which resulted in our salaries and employee benefits decreasing 2.5% year over year.
Noninterest expense outside of employee costs increased 9.6% year over year with ORE expenses and technology expenses showing the largest increases. The ORE expense was a one-time write-off since recovered January 2020, while technology increased to meet our customers’ experience expectations and data security needs. Declining interest rates in 2019 proved to be a challenge but we believe our long- term balance sheet management positions us as to continue to do well in the sustained low rate environment.”

Oxford Bank is a subsidiary of Oxford Bank Corporation, a registered holding company. It is the oldest commercial bank in Oakland County and operates seven full-service offices in Clarkston, Davison, Dryden, Lake Orion, Oakland Township, Ortonville and Oxford. It also manages business banking centers in Brighton, Farmington Hills, Owosso, and 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.

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.

https://www.oxfordbank.com/about-us/oxford-bank-news.html