OXFORD, Mich., Jan. 26 /PRNewswire-FirstCall/ -- Oxford Bank
Corporation ("the Corporation") (OTC:OXBC) (BULLETIN BOARD: OXBC) ,
the holding company for Oxford Bank ("the Bank"), today announced
improved year-end and fourth quarter operating results for 2009.
The Corporation posted fourth quarter net income of $758,000, or
$0.66 per share, on net revenues (net interest income plus
noninterest income) of $3,638,000. This represents a $14,642,000
improvement compared to the same quarter last year. During the
twelve-month period ending December 31, 2009, a net loss of
$3,762,000, or $3.25 per share, was reported on net revenues of
$14,787,000; an 81.4-percent improvement over 2008. The
Corporation's operating performance continues to be negatively
effected by the economic environment, elevated levels of
non-performing loans, maintenance costs associated with bank owned
property and FDIC insurance expense. However, the financial results
of the Corporation improved in 2009 as a result of the increased
look back period for net operating losses, aggressive cost
reduction initiatives and strategic balance sheet management. In
2009, the net operating loss carry-back provision of the United
States tax code was expanded as part of the Worker, Homeownership,
and Business Assistance Act of 2009, providing a limited, one time
benefit to the Corporation. The modification allowed the
Corporation to recover $3.1 million in previously paid income
taxes. During the year, management implemented aggressive
cost-cutting initiatives designed to reduce total expenditures.
Measures included managing interest expense, containing problem
asset costs and improving the efficiency of the organization. These
efforts resulted in a $3.2 million decline in interest expense, a
$2 million decrease in noninterest expense, and an $11.5 million
reduction in loan loss provision in 2009. Due to these initiatives,
the year-to-date pre-tax loss for 2009 was reduced by 62.4-percent
relative to 2008. Management also continued to strategically reduce
the Bank's asset size in 2009 to preserve capital and improve the
earnings capacity of the balance sheet. This decision resulted in a
$31.7 million reduction in total assets. As a result of this
tactic, the Corporation was able to maintain a Tier 1 capital ratio
of 4.02-percent for the quarter ending December 31, 2009.
Management also was able to generate a strong net interest margin
despite a depressed rate environment. Net interest margin on a tax
equivalent basis was 3.69-percent in 2009 compared to 3.74-percent
in 2008. Liquidity also remains strong, with a combined total of
$88.2 million in cash, cash equivalents and securities. C. James
Bess, President and Chief Executive Officer of the Corporation,
issued the results and commented: "Although substantial progress
has been made over the past six months, it is essential that we
remain fully engaged with corrective-action and the reduction of
non-performing loan assets. The Bank's long-term prospects rest
with replenishing the capital account. Therefore, in order to
maintain franchise value for the benefit of shareholders,
employees, customers, and communities served, we continue to
vigorously pursue new sources of capital that will allow us to
purge problem loan assets from the balance sheet and facilitate a
return to profitability." Oxford Bank is a subsidiary of Oxford
Bank Corporation, a registered holding company. It is the oldest
commercial bank in Oakland County and operates eight full-service
offices in Clarkston, Davison, Dryden, Goodrich, Lake Orion,
Oakland Township, Ortonville and Oxford. It also manages a consumer
lending center in Oxford and a commercial banking office in Lake
Orion. 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 http://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. Oxford Bank Corporation Consolidated
Balance Sheet (Unaudited) (Dollars in thousands except per share
data) December 31, ------------ 2009 2008 ---- ---- ASSETS ------
Cash and due from banks $37,701 $20,338 Federal funds sold - 1,177
--- ----- Total cash and cash equivalents 37,701 21,515 Securities
available-for-sale 43,407 47,369 Securities held-to-maturity 6,001
9,174 Federal Home Loan Bank Stock 1,096 1,096 ----- ----- Total
securities 50,504 57,639 Portfolio loans Consumer loans 46,409
60,504 Mortgage loans 64,102 76,624 Commercial loans 117,438
136,764 ------- ------- Total loans 227,949 273,892 Less: Allowance
for loan loss 9,348 10,664 ----- ------ Net loans 218,601 263,228
Premises and equipment, net 9,061 9,255 Other real estate owned
10,068 6,873 Accrued interest receivable and other assets 4,886
4,047 ----- ----- TOTAL ASSETS $330,821 $362,557 ======== ========
LIABILITIES ----------- Deposits Noninterest-bearing $56,340
$55,545 Interest-bearing 258,856 285,355 ------- ------- Total
deposits 315,196 340,900 Short term borrowings 414 1,258 Accrued
interest payable, taxes and other liabilities 1,899 2,565 -----
----- Total Liabilities 317,509 344,723 SHAREHOLDERS' EQUITY
-------------------- Common stock, no par value; 10,000,000 and
3,200,000 shares authorized; 1,156,690 shares issued and
outstanding 16,271 16,271 Retained (deficit) earnings (2,921) 841
Accumulated other comprehensive income, net of tax (38) 722 --- ---
Total shareholders' equity 13,312 17,834 ------ ------ TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $330,821 $362,557 ========
======== - - Book value per share $11.51 $15.42 Oxford Bank
Corporation Consolidated Statement of Income (Unaudited) (dollars
in thousands except per share data) Quarter to Date Year to Date
--------------- ------------ December 31, December 31, ------------
------------ 2009 2008 2009 2008 ---- ---- ---- ---- Interest
Income --------------- Interest and fees on loans Commercial loans
$1,900 $2,175 $7,908 $9,193 Installment loans 342 536 1,641 2,524
Mortgage loans 861 1,180 4,004 5,509 Open end loans 358 467 1,528
2,053 Late charges and fees 63 72 296 323 --- --- --- --- Total
loan interest and fee income 3,524 4,430 15,377 19,602 Interest on
investment securities Taxable 180 512 1,172 2,540 Tax-exempt 73 144
423 656 --- --- --- --- Total investment income 253 656 1,595 3,196
--- --- ----- ----- Total interest income 3,777 5,086 16,972 22,798
Interest Expense ---------------- Interest on deposits 1,109 1,632
5,618 8,792 Interest on borrowed funds - 32 - 44 --- --- --- ---
Total interest expense 1,109 1,664 5,618 8,836 ----- ----- -----
----- Net Interest Income 2,668 3,422 11,354 13,962 Provision for
loan losses 2,000 7,300 5,850 17,300 ----- ----- ----- ------ Net
Interest Income After Provision for Loan Losses 668 (3,878) 5,504
(3,338) Noninterest Income ------------------ Service charge income
330 374 1,364 1,548 Mortgage banking activities 38 60 303 458 Other
income 602 392 1,766 761 --- --- ----- --- Total noninterest income
970 826 3,433 2,767 Noninterest Expense -------------------
Salaries and employee benefits 1,129 1,826 5,723 6,822 Occupancy
expense 268 301 1,216 1,306 Equipment expense 117 115 521 447 Other
Loan Expense 1,373 1,844 3,523 4,703 Other expense 1,159 1,398
4,882 4,587 ----- ----- ----- ----- Total noninterest expense 4,046
5,484 15,865 17,865 Loss Before Income Taxes (2,408) (8,536)
(6,928) (18,436) Income tax (recovery) expense (3,166) 5,348
(3,166) 1,777 ------ ----- ------ ----- Net Income (Loss) $758
$(13,884) $(3,762) $(20,213) ==== ======== ======= ======== Income
(Loss) per Share - Basic $0.66 $(12.00) $(3.25) $(17.47) Oxford
Bank Corporation Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data) Year to Date December
31, Change ------------ ------ 2009 2008 Amount Percentage ----
---- ------ ---------- Financial Summary Interest Income $16,972
$22,798 $(5,826) -25.6% Interest Expense 5,618 8,836 (3,218) -36.4%
----- ----- ------ Net Interest Income 11,354 13,962 (2,608) -18.7%
Provision for loan loss 5,850 17,300 (11,450) -66.2% Noninterest
income 3,433 2,767 666 24.1% Noninterest expense 15,865 17,865
(2,000) -11.2% ------ ------ ------ Loss before Income Taxes
(6,928) (18,436) 11,508 62.4% Income tax recovery (3,166) 1,777
(4,943) -278.2% ------ ----- ------ Net Loss $(3,762) $(20,213)
$16,451 81.4% ======= ======== ======= Balance Sheet Data Total
assets 330,821 362,557 (31,736) -8.8% Earning assets 278,452
332,708 (54,256) -16.3% Total loans 227,949 273,892 (45,944) -16.8%
Allowance for loan loss 9,348 10,664 (1,316) -12.3% Total deposits
315,196 340,900 (25,704) -7.5% Other borrowings 414 1,258 (844)
-67.1% Shareholders' equity 13,312 17,834 (4,522) -25.4% Asset
Quality Other real estate owned 10,068 6,873 3,195 46.5% Net
charge-offs 7,166 16,328 (9,162) -56.1% Non-accrual loans 17,984
15,255 2,730 17.9% Nonperforming assets 28,053 22,128 5,925 26.8%
Non-accrual loans / total loans 7.89% 5.57% 2.32% 41.7% Allowance
for loan loss /total loans 4.10% 3.89% 0.21% 5.3% Allowance for
loan loss /non-accrual loans 51.98% 69.91% -17.93% -25.6%
Performance Measurements Net interest margin (tax equivalent) 3.69%
3.74% -0.05% -1.3% Return on average assets (annualized) -1.05%
-5.03% 3.98% 79.1% Return on average equity (annualized) -24.6%
-61.0% 36.4% 59.6% Equity / Assets 4.0% 4.9% -0.9% -18.2% Loans /
Deposits 72.3% 80.3% -8.0% -10.0% Book Value $11.51 $15.42 $(3.91)
-25.4% Loss per share - Basic $(3.25) $(17.47) $14.22 81.4% Shares
Outstanding 1,156,690 1,156,690 - 0.0% Quarter Ended December
September 31, 30, June 30, 2009 2009 2009 Financial Summary
Interest Income $3,777 $3,995 $4,458 Interest Expense 1,109 1,346
1,554 ----- ----- ----- Net Interest Income 2,668 2,649 2,904
Provision for loan loss 2,000 2,050 1,000 Noninterest income 970
469 1,023 Noninterest expense 4,046 3,676 4,344 ----- ----- -----
Loss before Income Taxes (2,408) (2,608) (1,417) Income tax
(recovery) expense (3,166) - - ------ --- --- Net Income (Loss)
$758 $(2,608) $(1,417) ==== ======= ======= Balance Sheet Data
Total assets 330,821 347,956 366,223 Earning assets 278,452 298,061
312,092 Total loans 227,949 240,924 253,222 Allowance for loan loss
9,348 10,089 9,473 Total deposits 315,196 332,865 348,070 Other
borrowings 414 170 459 Shareholders' equity 13,312 12,980 15,418
Asset Quality Other real estate owned 10,068 11,374 8,873 Net
charge-offs 2,741 1,434 1,572 Non-accrual loans 17,984 18,954
11,540 Nonperforming assets 28,053 30,328 20,413 Non-accrual loans
/ total loans 7.89% 7.87% 4.56% Allowance for loan loss /total
loans 4.10% 4.19% 3.74% Allowance for loan loss /non-accrual loans
51.98% 53.23% 82.09% Performance Measurements Net interest margin
(tax equivalent) 3.58% 3.46% 3.75% Return on average assets
(annualized) 0.91% -2.82% -1.56% Return on average equity
(annualized) 24.2% -70.5% -34.3% Equity / Assets 4.0% 3.7% 4.2%
Loans / Deposits 72.3% 72.4% 72.8% Book Value $11.51 $11.22 $13.33
Income (loss) per share -Basic $0.66 $(2.25) $(1.22) Shares
Outstanding 1,156,690 1,156,690 1,156,690 December March 31, 31,
2009 2008 Financial Summary Interest Income $4,742 $5,086 Interest
Expense 1,608 1,664 ----- ----- Net Interest Income 3,135 3,422
Provision for loan loss 800 7,300 Noninterest income 970 826
Noninterest expense 3,800 5,484 ----- ----- Loss before Income
Taxes (495) (8,537) Income tax (recovery) expense - 5,348 --- -----
Net Income (Loss) $(495) $(13,885) ===== ======== Balance Sheet
Data Total assets 361,315 362,557 Earning assets 321,017 332,708
Total loans 263,431 273,892 Allowance for loan loss 10,045 10,664
Total deposits 341,567 340,900 Other borrowings 468 1,258
Shareholders' equity 17,151 17,834 Asset Quality Other real estate
owned 9,743 6,873 Net charge-offs 1,419 4,734 Non-accrual loans
12,553 15,255 Nonperforming assets 22,296 22,128 Non-accrual loans
/ total loans 4.77% 5.57% Allowance for loan loss /total loans
3.81% 3.89% Allowance for loan loss /non-accrual loans 80.02%
69.91% Performance Measurements Net interest margin (tax
equivalent) 3.98% 4.06% Return on average assets (annualized)
-0.55% -15.33% Return on average equity (annualized) -11.5% -203.4%
Equity / Assets 4.7% 4.9% Loans / Deposits 77.1% 80.3% Book Value
$14.83 $15.42 Income (loss) per share -Basic $(0.43) $(12.00)
Shares Outstanding 1,156,690 1,156,690 DATASOURCE: Oxford Bank
Corporation CONTACT: Anthony P. Lasher, +1-248-628-2533, or Fax,
+1-248-969-7230 Web Site: http://www.oxfordbank.com/
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