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OXFORD BANK CORPORATION ANNOUNCES THIRD QUARTER 2026 OPERATING RESULTS

Oxford Bank CorporationOct 29, 2026, 12:45 PM ETOTC-PINK:OXBC OTC-BB:OXBC OTC-QX:OXBC

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OXFORD, Mich., Oct. 29, 2026 /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTCQX: OXBC), the holding company for Oxford Bank ("the Bank"), today announced operating results for the third quarter ended September 30, 2026.

The Company reported consolidated net income attributable to the parent company of $3.8 million, or $1.52 per share, for the third quarter ended September 30, 2026. This compares with $3.1 million, or $1.24 per share, for the third quarter of 2025. Third-quarter net income increased approximately 24%, while earnings per share increased approximately 23% from the prior-year quarter. Core net income attributable to the parent company for the quarter totaled $2.9 million, or $1.18 per share, compared with $2.9 million, or $1.19 per share, for the same period in 2025.

For the first nine months of 2026, net income attributable to the parent company totaled $8.0 million, or $3.23 per share, compared with $8.7 million, or $3.51 per share, for the same period in 2025. Core net income attributable to the parent company totaled $7.3 million, or $2.94 per share, compared with $8.3 million, or $3.38 per share, for the same period in 2025. Year-to-date results reflect continued growth in net interest income, offset by higher operating expenses and an increased provision for credit losses.

Balance Sheet Growth and Capital

Total assets were $969.4 million at September 30, 2026, an increase of $54.1 million, or 5.9%, from $915.3 million at September 30, 2025.

Loans and leases increased $64.3 million, or 9.7%, to $727.3 million, compared with $663.1 million one year earlier. Total deposits increased $58.6 million from the prior quarter, with growth coming from Municipal Banking and Conventional Business Banking. Municipal Banking balances exceeded $100 million at September 30, 2026. Strong deposit growth facilitated the repayment of all outstanding FHLB advances and reduction in brokered deposit utilization.

Total equity increased $9.7 million, or 8.9%, to $118.7 million. Tangible book value per share increased 8.4% to $43.75, compared with $40.36 at September 30, 2025.

Revenue Performance

Net interest income for the third quarter was $12.5 million, an increase of 12.5% from $11.1 million in the prior-year quarter. For the first nine months of 2026, net interest income increased 11.1% to $35.4 million, compared with $31.8 million for the same period in 2025. Growth in the balance sheet has driven the increasing net interest income, with net interest margins remaining stable in the mid-5s. We are pleased to effectively deploy our growing capital base into larger earning asset portfolios without compressing our best-in-class net interest margin.

Third-quarter noninterest income totaled $3.7 million, compared with $1.9 million in the third quarter of 2025. Year-to-date noninterest income was $7.3 million, an increase of 22.4% from $5.9 million during the first nine months of 2025. This increase was largely due to the $1.1 million one-time gain on sale from disposal of the former Business Solutions Center and Operations Center. Q3 Gains on Sale of SBA Loans were the strongest in several quarters, and a robust pipeline bodes well for closing out the year strong.

Expenses and Credit Provision

Noninterest expense was $9.8 million for the third quarter, compared with $8.0 million in the prior-year quarter. For the first nine months of 2026, noninterest expense totaled $29.0 million, compared with $24.0 million for the same period in 2025. The largest year-over-year increases were in salaries and employee benefits, data processing and software, other loan expense, and other operating expense. Our loan expense is higher than normal due to the extended work-out time on two longstanding larger workouts.

The provision for credit losses was $992,000 for the third quarter and $2.2 million for the first nine months of 2026, compared with $863,000 and $1.9 million, respectively, for the corresponding 2025 periods. The allowance for credit losses was $10.8 million at September 30, 2026, compared with $7.7 million one year earlier, representing approximately 1.48% of total loans and leases at September 30, 2026. This ratio increased from 1.34% at June 30, 2026 and has the Bank well positioned going forward. The additional reserves allow the Bank to experience charge-offs as we resolve non-performing loans in coming quarters, while still remaining appropriately reserved after utilizing the specific reserves associated with those loans. Additionally, we are encouraged by accruing 30-89 days delinquencies declining even further, to a negligible $61,000 at September 30, 2026.

Management Perspective

David Lamb, President, CEO and Chair noted "Our third-quarter results demonstrate continued balance sheet and revenue growth, including strong expansion in loans, deposits and net interest income. At the same time, we have continued to invest in our people, technology and operating capabilities. Our initial expectation is our FYE 2026 net income will be in the range of $11.5-$12.0 million or $10.8-$11.3 million on a core basis, which would equate to $4.33-$4.53 per share noted."

"He added quarterly performance benefited from a gain on the disposal of fixed assets (turning a non-earning asset into earning assets), while year-to-date earnings reflect higher operating expenses and credit loss provisions. We believe this balanced view is important when evaluating the company's underlying franchise, funding base, growth and capital position."

On Asset Quality, Lamb stated "We believe our specific reserves/potential future charge-offs are well accounted for. Our concentration in commercial & industrial lending, including Oxford Commercial Finance ("OCF") working capital, does result in more idiosyncratic issues by borrowers vs. market segment concentration (like say, lodging) collapsing. We will have generally small loan losses as part of our businesses in most economic cycles with the recent performance outlier in our conventional business banking group due to two long-standing work-outs concentrated in terms of resolution time frame. Our expectation is in a recessionary environment we will have significantly lower losses than our peers because we aren't as subject to sector collapse like investment real estate concentrated peers. We also would expect our results will be stronger than peers in a recessionary environment because of the counter-cyclical impact of the OCF business which should grow faster and more profitably as conventional lending decreases."

Selected Financial Highlights

Dollars in thousands, except per-share data	Q3 2026	Q3 2025	YTD 2026	YTD 2025
Net interest income	$12,538	$11,146	$35,350	$31,818
Provision for credit losses	992	863	2,232	1,860
Noninterest income	3,655	1,917	7,264	5,935
Noninterest expense	9,800	8,048	28,951	24,011
Income before income taxes	5,401	4,152	11,431	11,882
Net income attributable to parent	$3,786	$3,063	$8,024	$8,668
Non-core items (tax-effected)	($834)¹	($132)²	($721)³	($333)⁴
Core net income attributable to parent	$2,952	$2,931	$7,303	$8,335
Basic earnings per share	$1.52	$1.24	$3.23	$3.51
Core earnings per share	$1.18	$1.19	$2.94	$3.38


1	Q3'26 core income adjustments include a $14K loss on the sale of OREO and a $1.1 million gain on the sale of fixed assets
2	Q3'25 core income adjustments include a $56K loss on the sale of OREO and a $223K Gain on extinguishment of subordinated debt
3	YTD 2026 includes the Q3'26 adjustments above and an additional $33K loss on the sale of OREO and a $110K loss on the sale of fixed assets
4	YTD 2025 includes the Q3'25 adjustments above and an additional $255K gain on the sale of fixed assets

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, Michigan. The Bank also operates Customer Experience Centers in Ann Arbor, Macomb, and Rochester Hills, Michigan, with transactional services provided by Interactive Teller Machines only. In addition, Oxford Bank has business banking and commercial finance centers in Phoenix, AZ, Wixom, downtown Oxford, and Flint, Michigan. Founded in 1884, the Bank has operated continuously under local ownership and management for more than 140 years. For more information, visit www.oxfordbank.bank.

Except for historical information contained herein, certain matters discussed may be deemed forward‑looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially, including changes in interest rates, economic conditions, regulatory policies, competitive factors, and other risks described in the Company's filings. The Company undertakes no obligation to update forward‑looking statements.

Contact:

David P. Lamb, Chairman, President & CEO

Phone: (248) 628-2533

Fax: (248) 969-7230

Oxford Bank Corporation
Consolidated Balance Sheet (Unaudited)
(Dollars in thousands except per share data)

			September 30
			2026	2025
ASSETS:
	Cash and cash equivalents		$ 65,422	$ 83,017
	Interest bearing time deposits in banks		-	496
	Investment Securities - Available-for-Sale		130,890	117,808
	Investment Securities - Held-to-Maturity		585	1,160
	Loans and Leases		727,334	663,060
		Less: Allowance for credit losses	(10,791)	(7,713)
	Net loans and leases		716,543	655,347
	Premises and equipment, net		8,467	8,831
	Other real estate owned, net		7,268	7,310
	Goodwill		7,000	7,000
	Bank-owned life insurance		11,888	11,495
	Equipment on operating leases, net		3,984	4,413
	Accrued interest receivable and other assets		17,350	18,434
		TOTAL ASSETS	$ 969,398	$ 915,311

LIABILITIES:
	Deposits
	Noninterest-bearing		$ 300,503	$ 272,742
	Interest-bearing		527,876	510,282
		Total deposits	828,379	783,024
	Borrowings		13,856	13,828
	Accrued interest payable, taxes and other liabilities		8,504	9,503
		TOTAL LIABILITIES	850,739	806,355

SHAREHOLDERS' EQUITY
	Common stock, no par value; 10,000,000 shares authorized;
		2,492,329 and 2,476,160 shares issued and outstanding as of
		September 30, 2026 and 2025, respectively	31,405	30,891
	Retained Earnings		88,288	77,884
	Accumulated other comprehensive income (loss), net of tax		(3,154)	(1,417)
		Total Shareholders' Equity attributable to Parent	116,539	107,358
	Noncontrolling Interest		2,120	1,598
		TOTAL EQUITY	118,659	108,956

		TOTAL LIABILITIES & EQUITY	$ 969,398	$ 915,311
			-	-
		*Book value per share*	$46.76	$43.36

Oxford Bank Corporation
Consolidated Statement of Income (Unaudited)
(Dollars in thousands except per share data)

			Quarter to Date		Year to Date
			September 30		September 30
			2026	2025	2026	2025
INTEREST INCOME:
	Loans and Leases, including fees		14,252	12,409	40,324	35,689
	Investment securities:
		Taxable	1,044	874	2,920	2,370
		Tax-exempt	12	15	40	40
	Interest bearing balances at banks		457	465	1,656	1,261
		Total Interest Income	15,765	13,763	44,940	39,360

INTEREST EXPENSE:
	Interest on deposits		3,027	2,462	8,712	7,054
	Interest on borrowed funds		200	155	878	488
		Total Interest Expense	3,227	2,617	9,590	7,542

Net Interest Income			12,538	11,146	35,350	31,818
	Provision for credit losses		992	863	2,232	1,860
		Net Interest Income After Provision for Credit Losses	11,546	10,283	33,118	29,958

NON-INTEREST INCOME:
	Service charges - deposits		438	158	1,150	458
	ATM fee income		177	173	511	506
	Gain on sale of loans		502	98	616	459
	Business banking income		351	305	1,061	1,331
	Commercial finance fee income		458	418	1,074	1,057
	Operating lease revenue		223	168	688	505
	Income on bank owned life insurance		100	97	296	283
	Gain on disposal of fixed assets		1,070	-	1,070	255
	Other		336	500	798	1,081
		Total Noninterest Income	3,655	1,917	7,264	5,935

NON-INTEREST EXPENSE:
	Salaries and employee benefits		5,527	4,653	16,423	13,981
	Occupancy and equipment		719	767	2,273	2,197
	Data Processing and Software		1,257	1,112	3,841	3,154
	Legal and other professional fees		492	320	1,140	1,127
	Other loan expense		224	227	1,164	822
	Loss on sale of OREO		15	56	48	56
	Writedown on OREO		-	-	-	-
	Other		1,566	913	4,062	2,674
		Total Noninterest Expense	9,800	8,048	28,951	24,011

Income Before Income Taxes			5,401	4,152	11,431	11,882
	Income tax expense		945	793	2,142	2,261
Net Income Before Noncontrolling Interest			4,456	3,359	9,289	9,621
	Net income attributable to Noncontrolling Interest		670	296	1,265	953
Net Income attributable to Parent			$ 3,786	$ 3,063	$ 8,024	$ 8,668

*Earnings per Weighted Average Share - Basic*			$ 1.52	$ 1.24	$ 3.23	$ 3.51

Oxford Bank Corporation
Consolidated Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)

			Year to Date
			September 30		Change
			2026	2025	Amount	Percentage
Income Statement
		Interest income	$ 44,940	$ 39,360	$ 5,580	14.2 %
		Interest expense	9,590	7,542	2,048	27.2 %
	Net interest income		35,350	31,818	3,532	11.1 %
		Provision for loan loss	2,232	1,860	372	20.0 %
		Noninterest income	7,264	5,935	1,329	22.4 %
		Noninterest expense	28,951	24,011	4,940	20.6 %
	Income before income taxes		11,431	11,882	(451)	(3.8 %)
		Income tax expense	2,142	2,261	(119)	(5.3 %)
		Net income attributable to Noncontrolling Interest	1,265	953	312	32.7 %
	*Net Income*		$ 8,024	$ 8,668	$ (644)	-7.4 %

Balance Sheet Data
	Total assets		969,398	915,311	54,087	5.9 %
	Earning assets		858,809	782,524	76,285	9.7 %
	Total loans		727,334	663,060	64,274	9.7 %
	Allowance for credit losses		10,791	7,713	3,078	39.9 %
	Total deposits		828,379	783,024	45,355	5.8 %
	Other borrowings		13,856	13,828	28	0.2 %
	Liability for unfunded commitments		255	473	(218)	(46.2 %)
	Total equity		118,659	108,956	9,703	8.9 %

Asset Quality
	Other real estate owned, net		7,268	7,310	(42)	(0.6 %)
	Net charge-offs (recoveries)		(284)	2,585	(2,869)	(111.0 %)
	Non-accrual loans		17,796	15,777	2,019	12.8 %
	Nonperforming assets		25,064	23,087	1,977	8.6 %
	Non-accrual loans / total loans		2.45 %	2.38 %	0.07 %	2.8 %
	Allowance for loan credit loss / total loans		1.48 %	1.16 %	0.32 %	27.5 %
	Allowance for loan credit loss / non-accrual loans		60.64 %	48.89 %	11.75 %	24.0 %

Performance Measurements
	Bank net interest margin (TE)		5.20 %	5.27 %	(0.07 %)	(1.3 %)
	Return on average assets (annualized)		1.13 %	1.36 %	(0.23 %)	(17.2 %)
	Return on average equity (annualized)		9.43 %	11.34 %	(1.90 %)	(16.8 %)
	Equity / Assets		12.24 %	11.90 %	0.34 %	2.8 %
	Loans / Deposits		87.8 %	84.7 %	3.1 %	3.7 %
	Book value per share		$46.76	$43.36	$ 3.40	7.8 %
	Earnings per weighted average share - basic		$ 3.23	$ 3.51	$ (0.28)	(7.9 %)
	Weighted average shares outstanding		2,483,346	2,469,991	13,355	0.5 %

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SOURCE Oxford Bank Corporation