OXFORD, Mich., Aug. 14 /PRNewswire-FirstCall/ -- Oxford Bank
Corporation (OTC:OXBC) (BULLETIN BOARD: OXBC) , the holding company
for Oxford Bank, today announced total operating results for the
second quarter and first half of 2008. In the second quarter, the
Corporation posted a net loss of $1,914,000 or $1.65 per share. For
the same three-month period in 2007, earnings were reported of
$581,000 or $0.46 per share. During the first six months of the
year a net loss of $2,933,000 or $2.54 per share was recorded
compared to net income of $994,000 or $0.78 per share for the same
period in 2007. Net interest income for the second quarter of 2008
was $3,606,000, an increase of 8.6-percent over the $3,320,000
reported in the first quarter of 2008, and compares favorably to
the $3,868,000 reported in the second quarter of 2007. Net revenue
(net interest income plus non-interest income) during the second
quarter of 2008 was $4,200,000 compared with net revenue of
$4,019,000 in the first quarter of 2008, a 4.5-percent increase
from the prior quarter. Net revenue for the second quarter of 2007
was $4,920,000. For the six-month period ended June 30, 2008, the
Bank posted net revenue of $8,219,000 compared to $9,580,000 for
same period in 2007. These revenue results were accumulated despite
a strategic $83.5 million decline in total assets from June 30,
2007 and a $38.4 million decrease in total assets from March 31,
2008. Jeffrey M. Davidson, chairman, president, and chief executive
officer of the Corporation, issued the results and commented,
"These numbers tell us that management's pro-active decision
initiated more than a year ago to shrink the size of the Bank in
the face of declining loan demand and poor local economic
conditions has been effective in maintaining our net interest
margin. As local loan demand has deteriorated, we have implemented
an aggressive, but disciplined, deposit pricing strategy. While
this action has resulted in a 15.7-percent drop in total deposits
over the past twelve months, it has not negatively impacted our
liquidity position. Our attention to interest-related expenses has
paid dividends as our net interest spread and our net interest
margin continue to witness steady improvement. As of June 30, 2008
our margin was 3.82-percent, compared to 3.00-percent in January of
this year and 3.24-percent in June of 2007. Despite a substantial
decline in earning assets, Oxford Bank continues to improve the net
revenue stream of the organization." Davidson added,
"Unfortunately, the aforementioned revenues have not translated
into profits this year; and won't for the remainder of 2008. This
money, along with some of our retained earnings, has been used to
compensate for losses in our residential loan portfolio. Thus far,
the Bank has allocated $4.375 million to its loan loss reserve.
While these developments are clearly disappointing, especially as
it relates to our ability to report net income, we feel we have
been aggressive and pro-active in dealing with, and preparing for,
the influx of foreclosed homes into 'other real estate owned
(ORE).' It is important to note that loans written in the last
year, under our new underwriting standards, are not part of this
issue. Once we are able to get out in front of the foreclosure
problems plaguing our region, we will be in good position to return
Oxford Bank to profitability." Total consolidated assets as of June
30, 2008 were $406,101,000, a 17.1-percent decline from the same
period last year. Portfolio loans declined $55.0 million to
$301,537,000 during the past twelve months and deposits were
$370,334,000 as of June 30, 2008 compared to $439,207,000 as of
June 30, 2007. Oxford Bank Corporation is a registered holding
company. Its subsidiary, Oxford Bank, 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 lending 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) June 30, 2008 2007 ASSETS Cash and due from banks $11,736
$16,159 Interest-bearing deposits with banks 736 317 Federal funds
sold 13,280 40,160 Total cash and cash equivalents 25,752 56,636
Securities available-for-sale 50,287 49,025 Securities
held-to-maturity 10,509 12,677 Other securities 1,096 1,096 Total
securities 61,892 62,798 Portfolio loans Consumer loans 66,751
89,216 Mortgage loans 93,104 112,858 Commercial Loans 141,682
154,438 Total loans 301,537 356,512 Less allowance for loan loss
6,095 4,235 Net loans 295,442 352,277 Bank premises and equipment,
net 9,446 9,811 Other real estate owned 6,807 3,329 Accrued
interest receivable and other assets 6,762 4,780 TOTAL ASSETS
$406,101 $489,631 LIABILITIES Deposits Non-interest bearing $62,900
$66,494 Interest bearing 307,434 372,713 Total deposits 370,334
439,207 Short term borrowings 1,134 863 Accrued interest payable,
taxes and other 78 4,172 Total Liabilities 371,546 444,242
SHAREHOLDERS' EQUITY Common stock, no par value; 3,200,000 shares
authorized; 1,156,690 and 1,205,878 shares issued and outstanding,
respectively 16,271 18,000 Retained earnings 18,120 27,614
Accumulated other comprehensive income/ (loss), net of tax 164
(225) Total shareholders' equity 34,555 45,389 TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $406,101 $489,631 Book value per share
$29.87 $37.64 Oxford Bank Corporation Consolidated Statement of
Income (Unaudited) (Dollars in thousands except per share data)
Quarter to Date Year to Date June 30, June 30, 2008 2007 2008 2007
Interest Income Interest and fees on loans Commercial loans $2,379
$2,789 $4,802 $5,591 Installment loans 660 968 1,398 2,025 Mortgage
loans 1,449 1,792 3,003 3,811 Open end loans 513 651 1,094 1,303
Late charges and fees 77 123 177 230 Total loan interest and fee
income 5,078 6,323 10,474 12,960 Interest on investment securities
Taxable 541 512 988 1,146 Tax-exempt 172 191 359 390 Total
investment income 713 703 1,347 1,536 Federal funds sold 87 550 470
1,000 Total interest income 5,878 7,576 12,291 15,496 Interest
Expense Interest on deposits 2,271 3,699 5,362 7,617 Interest on
borrowed funds 1 9 3 16 Total interest expense 2,272 3,708 5,365
7,633 Net Interest Income 3,606 3,868 6,926 7,863 Provision for
loan losses 3,075 790 4,375 1,445 Net Interest Income After
Provision for Loan Losses 531 3,078 2,551 6,418 Noninterest Income
Service charge income 400 433 762 831 Income from loan sales 100
172 250 299 Other income 94 447 281 587 Total noninterest income
594 1,052 1,293 1,717 Noninterest Expense Salaries and employee
benefits 1,640 2,036 3,388 4,025 Occupancy expense 312 345 725 720
Equipment expense 107 135 218 250 Other loan expense 874 75 1,883
299 Other expense 1,183 771 2,300 1,560 Total noninterest expense
4,116 3,362 8,514 6,854 Income (Loss) Before Income Taxes (2,991)
768 (4,670) 1,281 Income tax expense (recovery) (1,077) 187 (1,737)
287 Net Income (Loss) $(1,914) $581 $(2,933) $994 Earnings (Loss)
per Share - basic $(1.65) $ 0.46 $(2.54) $ 0.78 Oxford Bank
Corporation Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data) Year to Date June 30,
Change 2008 2007 Amount Percentage Financial Summary Interest
Income $12,291 $15,496 $(3,206) -20.7% Interest Expense 5,365 7,633
(2,268) -29.7% Net Interest Income 6,926 7,863 (937) -11.9%
Provision for loan loss 4,375 1,445 2,930 202.8% Noninterest income
1,293 1,717 (424) -24.7% Noninterest expense 8,514 6,854 1,660
24.2% Income (Loss) before Income Taxes (4,670) 1,281 (5,951)
-464.4% Income tax expense (recovery) (1,737) 287 (2,024) -704.2%
Net Income (Loss) $(2,933) $994 $(3,927) -395.1% Balance Sheet Data
Total assets 406,101 489,631 (83,530) -17.1% Earning assets 377,444
459,787 (82,343) -17.9% Total loans 301,537 356,512 (54,975) -15.4%
Allowance for loan loss 6,095 4,235 1,860 43.9% Total deposits
370,334 439,207 (68,873) -15.7% Other borrowings 1,134 863 271
31.4% Shareholders' equity 34,555 45,389 (10,834) -23.9% Asset
Quality Other real estate owned 6,807 3,329 3,478 104.5% Net
charge-offs 7,972 1,403 6,570 468.4% Non-accrual loans 14,960
21,210 (6,250) -29.5% Nonperforming assets 21,766 24,539 (2,772)
-11.3% Non-accrual loans / total loans 4.96% 5.95% -0.99% -16.6%
Allowance for loan loss / total loans 2.02% 1.19% 0.83% 70.1%
Allowance for loan loss / non- accrual loans 40.74% 19.97% 20.77%
104.0% Performance Measurements Equity / Assets 8.5% 9.3% -0.8%
-8.2% Loans / Deposits 81.4% 81.2% 0.3% 0.3% Book Value $29.87
$37.64 $(7.77) -20.6% Earnings (Loss) per share - basic $(2.54)
$0.78 $(3.32) -423.1% Shares Outstanding 1,156,690 1,205,878
(49,188) -4.1% Share Price High $29.75 $48.50 $(18.75) -38.7% Low
$12.50 $46.50 $(34.00) -73.1% Close $12.50 $47.65 $(35.15) -73.8%
DATASOURCE: Oxford Bank Corporation CONTACT: Anthony P. Lasher of
Oxford Bank Corporation, +1-248-628-2533, Fax: +1-248-969-7230 Web
site: http://www.oxfordbank.com/
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