Oxford Bank (PK) (USOTC:OXBC)
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OXFORD, Mich., April 24 /PRNewswire-FirstCall/ -- Oxford Bank Corporation (OTC:OXBC) (BULLETIN BOARD: OXBC) , the holding company for Oxford Bank ("the Bank"), today announced a 51.4-percent improvement in operating results for the first quarter ending March 31, 2009. A net loss of $495,000, or $0.43 per share, was reported, compared to a net loss of $1,019,000, or $0.88 per share, for the same three-month period in 2008.
The Corporation continued to report strong net interest income, despite a strategic $95 million reduction in earning assets during the past twelve months. Net interest income for the first quarter of 2009 was $3,135,000, compared to $3,320,000 in the first quarter of 2008. The Bank's net-interest margin and spread also experienced significant improvement over the prior year. As of March 31, 2009, net-interest margin and spread were 3.98% and 3.71%, respectively. This was achieved by successfully executing the Bank's pricing strategy and reducing high-priced, non-core deposits. In addition, the liquidity position of the Bank remains strong and continues to provide strength to the organization. Net revenue (interest income plus non-interest income) during the first quarter was $5,712,000.
Jeffrey M. Davidson, chairman, president, and chief executive officer of the Corporation, issued the results and commented, "The Corporation has not yet returned to profitability due, in large part, to the issues that still remain within our residential home mortgage portfolio and the costs associated with the maintenance and sale of foreclosed properties. However, positive trends are materializing as a result of nearly two years of aggressive, sustained efforts to reduce expenses and improve asset quality. As a result of the cost reduction initiative implemented by management in 2008, the Bank has been able to improve the operating efficiency of the organization and reduce non interest expense by approximately $600,000 during the first quarter of 2009." Davidson went on to say, "Our efforts to mitigate the effects of the local economy on our overall loan portfolio has produced positive results relative to last year, including a 24.6-percent reduction in nonperforming assets, a 44.8-percent decrease in net charge-offs, and a 43.9-percent decline in non-accrual loans. Furthermore, the Bank has significantly improved the coverage of the allowance for loan loss to provide additional protection against further deterioration in the loan portfolio."
Davidson concluded, "The difficulties of the past 18 months, and our employees' efforts to meet and overcome these challenges, have made our 125-year old institution stronger and more efficient. Their hard work, determination, and sacrifices have reshaped Oxford Bank for the better. However, there is more to be done. While we continue to experience improvements in asset quality, margin, and liquidity, we are focused on returning to profitability."
Oxford Bank is a subsidiary of Oxford Bank Corporation, a registered holding company. It is the oldest commercial bank in Oakland County, celebrating its 125th anniversary in 2009. It operates eight full-service offices in Clarkston, Davison, Dryden, Goodrich, Lake Orion, Oakland Township, Ortonville and Oxford, along with managing 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)
March 31,
---------
2009 2008
---- ----
ASSETS
------
Cash and due from banks $27,553 $12,208
Interest-bearing deposits with banks 1,250 718
Federal funds sold - 32,070
- ------
Total cash and cash equivalents 28,803 44,996
Securities available-for-sale 46,417 48,856
Securities held-to-maturity 8,824 13,560
Other securities 1,096 1,096
----- -----
Total securities 56,336 63,512
Portfolio loans
Consumer loans 57,654 72,558
Mortgage loans 74,213 101,648
Commercial Loans 131,564 145,931
------- -------
Total loans 263,431 320,137
Less allowance for loan loss 10,045 8,423
------ -----
Net loans 253,386 311,714
Bank premises and equipment, net 9,306 9,544
Other real estate owned 9,743 7,160
Accrued interest receivable and other assets 3,742 7,529
----- -----
TOTAL ASSETS $361,315 $444,455
======== ========
LIABILITIES
-----------
Deposits
Non-interest bearing $56,170 $60,630
Interest bearing 285,397 344,117
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Total deposits 341,567 404,747
Short term borrowings 468 538
Accrued interest payable, taxes and
other liabilities 2,129 2,105
----- -----
Total Liabilities 344,164 407,390
SHAREHOLDERS' EQUITY
--------------------
Common stock, no par value; 3,200,000
shares authorized; 1,156,690 shares
issued and outstanding 16,271 16,271
Retained earnings 346 20,034
Accumulated other comprehensive
income/(loss), net of tax 534 760
--- ---
Total shareholders' equity 17,151 37,065
------ ------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $361,315 $444,455
======== ========
- -
Book value per share $14.83 $32.04
Oxford Bank Corporation
Consolidated Statement of Income (Unaudited)
(Dollars in thousands except per share data)
Year to Date
------------
March 31, March 31,
2009 2008
---- ----
Interest Income
---------------
Interest and fees on loans
Commercial loans $2,033 $2,422
Installment loans 475 737
Mortgage loans 1,188 1,554
Open end loans 421 582
Late charges and fees 59 101
-- ---
Total loan interest and fee income 4,176 5,396
Interest on investment securities
Taxable 429 447
Tax-exempt 136 187
--- ---
Total investment income 566 634
Federal funds sold - 383
- ---
Total interest income 4,742 6,413
Interest Expense
----------------
Interest on deposits 1,608 3,091
Interest on borrowed funds - 2
- -
Total interest expense 1,608 3,093
----- -----
Net Interest Income 3,135 3,320
Provision for loan losses 800 1,300
--- -----
Net Interest Income After
Provision for Loan Losses 2,335 2,020
Noninterest Income
------------------
Service charge income 326 362
Income from loan sales 178 150
Other income 466 187
--- ---
Total noninterest income 970 699
Noninterest Expense
-------------------
Salaries and employee benefits 1,560 1,749
Occupancy expense 429 413
Equipment expense 117 111
Other expense 1,695 2,125
----- -----
Total noninterest expense 3,800 4,398
Income (Loss) Before Income Taxes (495) (1,679)
Income tax expense (recovery) - (660)
- ----
Net Income (Loss) $(495) $(1,019)
===== =======
Earnings (Loss) per Share - basic $(0.43) $(0.88)
Oxford Bank Corporation
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date
------------
March 31, Change
--------- ------
2009 2008 Amount Percentage
---- ---- ------ ----------
Financial Summary
Interest Income $4,742 $6,413 $(1,671) -26.1%
Interest Expense 1,608 3,093 (1,486) -48.0%
----- ----- ------
Net Interest Income 3,135 3,320 (185) -5.6%
Provision for loan loss 800 1,300 (500) -38.5%
Noninterest income 970 699 271 38.9%
Noninterest expense 3,800 4,398 (598) -13.6%
----- ----- ----
Income (Loss) before
Income Taxes (495) (1,679) 1,184 70.5%
Income tax expense
(recovery) - (660) 660 100.0%
- ---- ---
Net Income (Loss) $(495) $(1,019) $524 51.4%
===== ======= ====
Balance Sheet Data
Total assets 361,315 444,455 (83,140) -18.7%
Earning assets 321,017 416,437 (95,421) -22.9%
Total loans 263,431 320,137 (56,706) -17.7%
Allowance for loan loss 10,045 8,423 1,622 19.3%
Total deposits 341,567 404,747 (63,180) -15.6%
Other borrowings 468 538 (69) -12.9%
Shareholders' equity 17,151 37,065 (19,914) -53.7%
Asset Quality
Other real estate owned 9,743 7,160 2,583 36.1%
Net charge-offs 1,419 2,569 (1,150) -44.8%
Non-accrual loans 12,553 22,392 (9,839) -43.9%
Nonperforming assets 22,296 29,552 (7,256) -24.6%
Non-accrual loans /
total loans 4.77% 6.99% -2.23% -31.9%
Allowance for loan loss
/ total loans 3.81% 2.63% 1.18% 44.9%
Allowance for loan loss
/ non-accrual loans 80.02% 37.62% 42.41% 112.7%
Performance Measurements
Net interest margin
(tax equivalent) 3.98% 3.20% 0.78% 24.4%
Return on average
assets (annualized) -0.55% -0.90% 0.35% 38.9%
Return on average
equity (annualized) -11.5% -11.0% -0.5% -5.0%
Equity / Assets 4.7% 8.3% -3.6% -43.1%
Loans / Deposits 77.1% 79.1% -2.0% -2.5%
Book Value $14.83 $32.04 $(17.22) -53.7%
Earnings (Loss) per
share - basic $(0.43) $(0.88) $0.45 51.4%
Shares Outstanding 1,156,690 1,156,690 - 0.0%
Oxford Bank Corporation
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Quarter Ended
-------------
March December September June March
31, 31, 30, 30, 31,
2009 2008 2008 2008 2008
---- ---- ---- ---- ----
Financial Summary
Interest Income $4,742 $5,086 $5,422 $5,878 $6,413
Interest Expense 1,608 1,664 1,808 2,272 3,093
----- ----- ----- ----- -----
Net Interest Income 3,135 3,422 3,614 3,606 3,320
Provision for
loan loss 800 7,300 5,625 3,075 1,300
Noninterest income 970 826 648 594 699
Noninterest expense 3,800 5,484 3,867 4,116 4,398
----- ----- ----- ----- -----
Income (Loss) before
Income Taxes (495) (8,537) (5,230) (2,991) (1,679)
Income tax expense
(recovery) - 5,348 (1,835) (1,077) (660)
----- ----- ------ ------ ----
Net Income (Loss) $(495) $(13,885) $(3,395) $(1,914) $(1,019)
===== ======== ======= ======= =======
Balance Sheet Data
Total assets 361,315 362,557 375,986 406,101 444,455
Earning assets 321,017 332,708 349,224 377,444 416,437
Total loans 263,431 273,892 286,872 301,537 320,137
Allowance for
loan loss 10,045 10,664 8,113 6,095 8,423
Total deposits 341,567 340,900 341,814 370,334 404,747
Other borrowings 468 1,258 814 1,134 538
Shareholders' equity 17,151 17,834 31,229 34,555 37,065
Asset Quality
Other real estate
owned 9,743 6,873 6,210 6,807 7,160
Net charge-offs 1,419 4,734 3,621 5,404 2,569
Non-accrual loans 12,553 15,408 17,024 14,960 22,392
Nonperforming
assets 22,296 22,281 23,233 21,767 29,552
Non-accrual loans /
total loans 4.77% 5.63% 5.93% 4.96% 6.99%
Allowance for loan
loss / total loans 3.81% 3.89% 2.83% 2.02% 2.63%
Allowance for loan
loss / non-accrual
loans 80.02% 69.21% 47.66% 40.74% 37.62%
Performance Measurements
Net interest margin
(tax equivalent) 3.98% 4.06% 4.03% 3.78% 3.20%
Return on average
assets (annualized) -0.55% -15.33% -3.45% -1.83% -0.90%
Return on average
equity (annualized) -11.5% -203.4% -40.8% -21.0% -11.0%
Equity / Assets 4.7% 4.9% 8.3% 8.5% 8.3%
Loans / Deposits 77.1% 80.3% 83.9% 81.4% 79.1%
Book Value $14.83 $15.42 $27.00 $29.87 $32.04
Earnings (Loss) per
share - basic $(0.43) $(12.00) $(2.94) $(1.65) $(0.88)
Shares
Outstanding 1,156,690 1,156,690 1,156,690 1,156,690 1,156,690
DATASOURCE: Oxford Bank Corporation
CONTACT: Anthony P. Lasher, +1-248-628-2533, Fax:, +1-248-969-7230
Web Site: http://www.oxfordbank.com/