OXFORD BANK CORPORATION ANNOUNCES THIRD QUARTER 2026 OPERATING RESULTS

OXFORD, Mich., Oct. 29, 2026 /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTCQX: OXBC), the holding company for Oxford Bank ("the Bank"), today announced operating results for the third quarter ended September 30, 2026.

The Company reported consolidated net income attributable to the parent company of $3.8 million, or $1.52 per share, for the third quarter ended September 30, 2026. This compares with $3.1 million, or $1.24 per share, for the third quarter of 2025. Third-quarter net income increased approximately 24%, while earnings per share increased approximately 23% from the prior-year quarter. Core net income attributable to the parent company for the quarter totaled $2.9 million, or $1.18 per share, compared with $2.9 million, or $1.19 per share, for the same period in 2025.

For the first nine months of 2026, net income attributable to the parent company totaled $8.0 million, or $3.23 per share, compared with $8.7 million, or $3.51 per share, for the same period in 2025. Core net income attributable to the parent company totaled $7.3 million, or $2.94 per share, compared with $8.3 million, or $3.38 per share, for the same period in 2025. Year-to-date results reflect continued growth in net interest income, offset by higher operating expenses and an increased provision for credit losses.

Balance Sheet Growth and Capital

Total assets were $969.4 million at September 30, 2026, an increase of $54.1 million, or 5.9%, from $915.3 million at September 30, 2025.

Loans and leases increased $64.3 million, or 9.7%, to $727.3 million, compared with $663.1 million one year earlier. Total deposits increased $58.6 million from the prior quarter, with growth coming from Municipal Banking and Conventional Business Banking.  Municipal Banking balances exceeded $100 million at September 30, 2026.  Strong deposit growth facilitated the repayment of all outstanding FHLB advances and reduction in brokered deposit utilization.

Total equity increased $9.7 million, or 8.9%, to $118.7 million. Tangible book value per share increased 8.4% to $43.75, compared with $40.36 at September 30, 2025.

Revenue Performance

Net interest income for the third quarter was $12.5 million, an increase of 12.5% from $11.1 million in the prior-year quarter. For the first nine months of 2026, net interest income increased 11.1% to $35.4 million, compared with $31.8 million for the same period in 2025. Growth in the balance sheet has driven the increasing net interest income, with net interest margins remaining stable in the mid-5s.  We are pleased to effectively deploy our growing capital base into larger earning asset portfolios without compressing our best-in-class net interest margin.

Third-quarter noninterest income totaled $3.7 million, compared with $1.9 million in the third quarter of 2025. Year-to-date noninterest income was $7.3 million, an increase of 22.4% from $5.9 million during the first nine months of 2025. This increase was largely due to the $1.1 million one-time gain on sale from disposal of the former Business Solutions Center and Operations Center.  Q3 Gains on Sale of SBA Loans were the strongest in several quarters, and a robust pipeline bodes well for closing out the year strong.

Expenses and Credit Provision

Noninterest expense was $9.8 million for the third quarter, compared with $8.0 million in the prior-year quarter. For the first nine months of 2026, noninterest expense totaled $29.0 million, compared with $24.0 million for the same period in 2025. The largest year-over-year increases were in salaries and employee benefits, data processing and software, other loan expense, and other operating expense. Our loan expense is higher than normal due to the extended work-out time on two longstanding larger workouts.

The provision for credit losses was $992,000 for the third quarter and $2.2 million for the first nine months of 2026, compared with $863,000 and $1.9 million, respectively, for the corresponding 2025 periods. The allowance for credit losses was $10.8 million at September 30, 2026, compared with $7.7 million one year earlier, representing approximately 1.48% of total loans and leases at September 30, 2026.  This ratio increased from 1.34% at June 30, 2026 and has the Bank well positioned going forward.  The additional reserves allow the Bank to experience charge-offs as we resolve non-performing loans in coming quarters, while still remaining appropriately reserved after utilizing the specific reserves associated with those loans.   Additionally, we are encouraged by accruing 30-89 days delinquencies declining even further, to a negligible $61,000 at September 30, 2026.

Management Perspective

David Lamb, President, CEO and Chair noted "Our third-quarter results demonstrate continued balance sheet and revenue growth, including strong expansion in loans, deposits and net interest income. At the same time, we have continued to invest in our people, technology and operating capabilities.  Our initial expectation is our FYE 2026 net income will be in the range of $11.5-$12.0 million or $10.8-$11.3 million on a core basis, which would equate to $4.33-$4.53 per share noted."

"He added quarterly performance benefited from a gain on the disposal of fixed assets (turning a non-earning asset into earning assets), while year-to-date earnings reflect higher operating expenses and credit loss provisions. We believe this balanced view is important when evaluating the company's underlying franchise, funding base, growth and capital position."

On Asset Quality, Lamb stated "We believe our specific reserves/potential future charge-offs are well accounted for. Our concentration in commercial & industrial lending, including Oxford Commercial Finance ("OCF") working capital, does result in more idiosyncratic issues by borrowers vs. market segment concentration (like say, lodging) collapsing. We will have generally small loan losses as part of our businesses in most economic cycles with the recent performance outlier in our conventional business banking group due to two long-standing work-outs concentrated in terms of resolution time frame. Our expectation is in a recessionary environment we will have significantly lower losses than our peers because we aren't as subject to sector collapse like investment real estate concentrated peers. We also would expect our results will be stronger than peers in a recessionary environment because of the counter-cyclical impact of the OCF business which should grow faster and more profitably as conventional lending decreases."

Selected Financial Highlights

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 operates 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 and commercial finance centers in Phoenix, AZ, Wixom, downtown Oxford, and Flint, Michigan. Founded in 1884, the Bank has operated continuously under local ownership and management for more than 140 years. For more information, visit www.oxfordbank.bank.

Except for historical information contained herein, certain matters discussed may be deemed forward‑looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially, including changes in interest rates, economic conditions, regulatory policies, competitive factors, and other risks described in the Company's filings. The Company undertakes no obligation to update forward‑looking statements.

Contact:
David P. Lamb, Chairman, President & CEO
Phone: (248) 628-2533
Fax: (248) 969-7230

SOURCE Oxford Bank Corporation