Oxford Bank Corporation Announces Second Quarter 2021 Operating Results

OXFORD, Mich., July 28, 2021 /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTC Bulletin Board: OXBC), the holding company for Oxford Bank ("the Bank"), today announced record operating results for the second quarter ended June 30, 2021.

The Company's quarterly consolidated earnings for the three months ended June 30, 2021, were $3,274,000, or $1.44 per weighted average share compared to $1,753,000, or $0.77 per weighted average share for the same period one year ago.   Year-to-date consolidated earnings were $6,362,000 or $2.77 per weighted average share for the six months ended June 30, 2021 compared to $3,135,000 or $1.37 per weighted average share for the six months ended June 30, 2012. CEO David P. Lamb commented "Net income in the second quarter continued to benefit from the loan forgiveness process which accelerates the amortization of the PPP fees which are recognized as interest income.  The stabilizing and opening of the economy has required the Bank to discontinue the provision to the loan loss reserves (ALLL) for the time being. Management will continue to review and analyze appropriate level of reserves but based upon the ongoing positive trends we have seen and see today, we anticipate our provision expense will continue at lower levels in the coming quarters."

Total Assets of the Company increased to $723.8 million as of June 30, 2021 from $691.1 million at December 31, 2020 but were decreased from $751.2 million at June 30, 2020.  "The decrease in assets this past quarter was expected as team knew many clients were waiting for forgiveness on SBA Paycheck Protection Program ("PPP") loans before investing or distributing excess liquidity. We expect further decreases in asset size for the same reason as well as the unprecedented liquidity in the financial system which has to start declining at some point," reported CEO Lamb. "We continue to see strong loan demand from the many new PPP only customers moving their primary relationship to Oxford Bank. Our sterling reputation from the PPP has also resulted in more referrals from a broader group of centers of influence like CPAs and attorneys. The aforementioned happened because our team from Day One back in May 2020 worked very hard to help our new customers keep their commitment on moving their relationships. Another benefit of the PPP is we continue to get recognized nationally and locally for our outsized participation as our national trade association, ICBA, recognized us as #5 in the nation for banks in the $500 million to $1 billion space and also on the Crain's Detroit "Fast 50" list. Although the PPP added a lot of value to our business and our team, we are hopeful that won't be a need for one in 2022 even though it will present growth challenges after the past two years' outstanding performance."

As of June 30, 2021, the SBA has forgiven $180 million of the Bank's PPP loans. Management is pleased to report that even with that level of pay-offs, total loans only decreased by $38 million to $526.8 million at June 30, 2021 from $559.1 million at June 30, 2020. Overall, non-PPP loans were up 11% in a YTD over YTD comparison. The Company paid down its PPP liquidity facility with the Federal Reserve to $11.7 million as of June 30, 2021 and subsequently paid the facility off in mid-July 2021.  Total deposits, bolstered by the PPP program and the new relationships obtained from that program, increased to $648.0 million at June 30, 2021 from $601.1 million at June 30, 2020, although overall continue to decline as expected.

The Company's total Shareholders' equity increased to $60.1 million as of June 30, 2021, representing book value per share of $26.44, compared to total Shareholders' equity of $50.8 million, or $22.21 per share one year earlier.  The subsidiary Bank's Tier 1 capital totaled $61.3 million as of June 30, 2021, or 14.2% of risk weighted assets compared to $51.0 million, or 13.6% of risk weighted assets as of June 30, 2020.

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.  The Bank also has a Customer Service Center in Rochester Hills with transactional services provided by Interactive Teller Machines only. In addition, Oxford Bank has business banking centers in Wixom and downtown Oxford and very soon we will be relocating our Owosso loan office to Flint, MI.. 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.

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SOURCE Oxford Bank Corporation