15:45 ET OXFORD BANK CORPORATION ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 OPERATING RESULTS

, /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTC Bulletin Board: OXBC), the holding company for Oxford Bank ("the Bank"), today announced operating results for the fourth quarter ended December 31, 2025. The Company's quarterly consolidated earnings for the three months ended December 31, 2025, were $2.30 million, or $0.93 per weighted average share, compared to $1.68 million, or $0.68 per weighted average share for the same period one year ago and $3.06 million, or $1.24 per weighted average share for the third quarter of 2025. 2025 earnings of $10.96 million or $4.44 per share, increased 10% compared to $9.96 million or $4.05 per share in 2024. President and CEO, David Lamb, commented "We made significant progress on several aspects of our business during 2025. Our Business Banking team led by Chief Relationship Officer Morrison produced robust growth from new and existing clients, with the latter being an important referral source of new customers. Our innovation efforts under the leadership of Chief Operating Officer Rosentrater continue to support improvement across the Bank. In 2025 we introduced new treasury management technologies which improve experience and create opportunities with more sophisticated potential clients. Additionally, we have begun to leverage Artificial Intelligence ("AI") technologies for non-customer impacting activities. While we believe that AI will transform all industries including banking, we also believe that a technology this powerful but still in its infancy needs deliberative implementation. Our goal in 2025 was to build familiarity internally without impacting client experience or exposing us to unintended risk. Overall, we are pleased with financial performance as demonstrated by growth of $1 million, or +10%, in net income compared with 2024. The team delivered this strong performance despite the minor drag on earnings performance from credit-related expenses. We believe this performance represents the engagement and passion our team has to help people." Lamb continued, "Comparing to prior year, net interest income grew at a 5% rate. This outcome was achieved despite the negative impact of declining rates on our net interest margin. While headline growth in noninterest expense outpaced this revenue growth, the majority of this expense increase was caused by a one-time charge to establish a $1.8 million valuation reserve against OREO." Total Assets of the Company were $1.09 billion as of December 31, 2025, compared to $915.31 million at September 30, 2025 and $811.21 million at December 31, 2024. "The balance sheet has increased significantly, driven by unexpected growth in deposit balances of one large deposit relationship. Our client has noted that much of this growth is temporary due to an M&A transaction and is expected to materially reverse in the first half of 2026. As a result, the Bank has maintained outsized cash balances in anticipation of this deposit outflow. Overall, liquidity remains strong between cash and readily marketable investments, even with the "one off" expected outflow." reported CEO David Lamb. Total loans and leases at December 31, 2025, were $661.37 million, compared to $663.06 million at September 30, 2025, or $613.50 million at December 31, 2024. CEO Lamb noted, "Our lending activity remains strong without compromising our standards for credit underwriting, and pricing discipline. I am exceptionally proud of our lending teams achieving 8% year-over-year growth in outstandings while managing their portfolios to maximize value for the Bank and our clients. We're excited to build on this momentum during 2026 with strong pipelines in both conventional and commercial finance." Total deposits were $953.31 million as of December 31, 2025, compared to $783.02 million at September 30, 2025 and $686.93 million at December 31, 2024. Overall Bank cost of funds ticked up one basis point, to 1.31% for full-year 2025, compared with 1.30% through the first three quarters. The Bank's loan and deposit activity in the quarter resulted in Net Interest Margin ("NIM") of 5.23% for full-year 2025, up from 4.88% for full-year 2024. "We continue to be pleased with the reliable performance of our loyal deposit base, and the strength of our client relationships. This is the foundation of our low-cost funding mix and has allowed us to produce net interest margins well above peers." The allowance for credit loss increased to $8.04 million at December 31, 2025, from $7.71 million at September 30, 2025. Provisions for credit loss of $0.51 million this quarter were driven primarily by an increase to the reserve ratio and secondarily roughly equally by provisions on net portfolio growth and by net charge-offs of $0.17 million. Lamb commented, "We have received investor bids for some foreclosed commercial properties which are measurably below appraised values. The number of assets is quite small so don't see it as new trend. However, we have proactively established a reserve against OREO to more accurately reflect the current state of market conditions for these properties. We remain confident that our Special Asset team will maximize the value of collateral and mitigate potential losses effectively. Compared to peers, we have low levels of investment real estate and office exposure, with a well-diversified mix of industry and local geography. We expect given the nature of our focus on C&I businesses both conventionally and in Oxford Commercial Finance that we may have higher nonperforming assets than our peer however we continue to remain confident that the impact to earnings will be minor." The Company's total shareholders' equity was $109.71 million as of December 31, 2025, representing book value per share of $44.31, compared to total shareholders' equity of $107.36 million, or $43.36 per share at September 30, 2025 and $96.09 million, or $38.98 per share at December 31, 2024. The increase in year-over-year equity is mainly a reflection of the positive accretion of retained earnings. The subsidiary Bank's Tier 1 capital totaled $105.71 million as of December 31, 2025, or 13.94% of risk-weighted assets compared to $103.75 million, or 14.24% of risk-weighted assets as of September 30, 2025, and $95.97 million, or 13.93% as of December 31, 2024. 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 has 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/commercial finance centers in Phoenix, AZ., Wixom, downtown Oxford, and Flint, Michigan. 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.bank. 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. Oxford Bank CorporationConsolidated Balance Sheet (Unaudited)(Dollars in thousands except per share data) December 31 2025 2024 ASSETS: Cash and cash equivalents $ 264,251 $ 45,281 Interest bearing time deposits in banks 496 993 Investment Securities - Available-for-Sale 115,769 111,410 Investment Securities - Held-to-Maturity 585 1,160 Loans and Leases 661,371 613,502 Less: Allowance for credit losses (8,037) (8,614) Net loans and leases 653,335 604,888 Premises and equipment, net 8,964 9,236 Other real estate owned, net 5,451 - Goodwill 7,000 7,000 Bank-owned life insurance 11,592 11,212 Equipment on operating leases, net 4,305 3,436 Accrued interest receivable and other assets 17,223 16,597 TOTAL ASSETS $ 1,088,971 $ 811,213 LIABILITIES: Deposits Noninterest-bearing $ 281,063 $ 273,919 Interest-bearing 672,251 413,007 Total deposits 953,314 686,926 Borrowings 13,835 15,779 Accrued interest payable, taxes and other liabilities 10,389 10,528 TOTAL LIABILITIES 977,537 713,233 SHAREHOLDERS' EQUITY Common stock, no par value; 10,000,000 shares authorized; 2,476,160 and 2,465,056 shares issued and outstanding as of December 31, 2025 and 2024, respectively 30,841 30,445 Retained Earnings 80,181 69,216 Accumulated other comprehensive income (loss), net of tax (1,311) (3,569) Total Shareholders' Equity attributable to Parent 109,711 96,092 Noncontrolling Interest 1,722 1,888 TOTAL EQUITY 111,433 97,980 TOTAL LIABILITIES & EQUITY $ 1,088,970 $ 811,213 - - Book value per share $44.31 $38.98 Oxford Bank CorporationConsolidated Statement of Income (Unaudited)(Dollars in thousands except per share data) Quarter to Date Year to Date December 31 December 31 2025 2024 2025 2024 INTEREST INCOME: Loans and Leases, including fees 12,355 12,519 48,044 44,880 Investment securities: Taxable 899 637 3,269 2,523 Tax-exempt 7 14 47 56 Interest bearing balances at banks 1,677 1,098 2,938 3,857 Total Interest Income 14,938 14,268 54,298 51,316 INTEREST EXPENSE: Interest on deposits 2,973 2,582 10,027 9,070 Interest on borrowed funds 122 142 610 772 Total Interest Expense 3,095 2,724 10,637 9,842 Net Interest Income 11,843 11,544 43,661 41,474 Provision for credit losses 514 1,736 2,374 3,274 Net Interest Income After Provision for Credit Losses 11,329 9,808 41,287 38,200 NON-INTEREST INCOME: Service charges - deposits 173 146 631 645 ATM fee income 171 177 677 691 Gain on sale of loans 43 56 502 248 Business banking income 337 434 1,668 1,695 Commercial finance fee income 259 - 1,316 1,793 Operating lease revenue 254 168 759 655 Income on bank owned life insurance 97 93 380 362 Gain (loss) on disposal of fixed assets - - 255 - Other 697 (313) 1,778 469 Total Noninterest Income 2,031 761 7,966 6,558 NON-INTEREST EXPENSE: Salaries and employee benefits 4,960 4,642 18,941 18,614 Occupancy and equipment 695 597 2,892 2,321 Data Processing and Software 1,090 1,189 4,244 4,517 Legal and other professional fees 259 225 1,386 953 Other loan expense 527 323 1,349 966 Loss (gain) on sale of OREO - - 56 - Writedown on OREO 1,859 - 1,859 - Other 1,052 1,064 3,726 3,900 Total Noninterest Expense 10,442 8,040 34,453 31,271 Income Before Income Taxes 2,918 2,529 14,800 13,487 Income tax expense 360 546 2,621 2,769 Net Income Before Noncontrolling Interest 2,558 1,983 12,179 10,718 Net income attributable to Noncontrolling Interest 262 303 1,215 750 Net Income attributable to Parent $ 2,296 $ 1,680 $ 10,964 $ 9,968 Earnings per Weighted Average Share - Basic $ 0.93 $ 0.68 $ 4.44 $ 4.05 Oxford Bank CorporationConsolidated Financial Summary and Selected Ratios (Unaudited)(Dollars in thousands except per share data) Year to Date December 31 Change 2025 2024 Amount Percentage Income Statement Interest income $ 54,298 $ 51,316 $ 2,982 5.8 % Interest expense 10,637 9,842 795 8.1 % Net interest income 43,661 41,474 2,187 5.3 % Provision for loan loss 2,374 3,274 (900) (27.5 %) Noninterest income 7,966 6,558 1,408 21.5 % Noninterest expense 34,453 31,271 3,182 10.2 % Income before income taxes 14,800 13,487 1,313 9.7 % Income tax expense 2,621 2,769 (148) (5.3 %) Net income attributable to Noncontrolling Interest 1,215 750 465 62.0 % Net Income $ 10,964 $ 9,968 $ 996 10.0 % Balance Sheet Data Total assets 1,088,971 811,213 277,758 34.2 % Earning assets 778,221 727,065 51,156 7.0 % Total loans 661,371 613,502 47,869 7.8 % Allowance for credit losses 8,037 8,614 (577) (6.7 %) Total deposits 953,314 686,926 266,388 38.8 % Other borrowings 13,835 15,779 (1,944) (12.3 %) Liability for unfunded commitments 473 217 256 118.0 % Total equity 111,433 97,980 13,453 13.7 % Asset Quality Other real estate owned, net 5,451 - 5,451 n/a Net charge-offs (recoveries) 2,755 786 1,969 250.5 % Non-accrual loans 15,540 9,829 5,711 58.1 % Nonperforming assets 20,991 9,829 11,162 113.6 % Non-accrual loans / total loans 2.35 % 1.60 % 0.75 % 46.7 % Allowance for loan credit loss / total loans 1.22 % 1.40 % (0.19 %) (13.5 %) Allowance for loan credit loss / non-accrual loans 51.72 % 87.64 % (35.92 %) (41.0 %) Performance Measurements Bank net interest margin (TE) 5.23 % 4.88 % 0.35 % 7.2 % Return on average assets (annualized) 1.23 % 1.17 % 0.06 % 5.3 % Return on average equity (annualized) 10.55 % 10.94 % (0.39 %) (3.6 %) Equity / Assets 10.23 % 12.08 % (1.85 %) (15.3 %) Loans / Deposits 69.4 % 89.3 % (19.9 %) (22.3 %) Book value per share $44.31 $38.98 $ 5.33 13.7 % Earnings per weighted average share - basic $ 4.44 $ 4.05 $ 0.38 9.5 % Weighted average shares outstanding 2,471,533 2,460,238 11,295 0.5 % Contact: David P. Lamb, Chairman, President & CEO Phone: (248) 628-2533 Fax: (248) 969-7230 SOURCE Oxford Bank Corporation