OXFORD, Mich., Jan. 29 /PRNewswire-FirstCall/ -- Oxford Bank
Corporation (OTC:OXBC) (BULLETIN BOARD: OXBC) , the holding company
for Oxford Bank, today announced 2006 earnings of $3,216,000 or
$2.51 per share versus $4,420,000 or $3.45 per share reported
twelve months earlier. Net income for the fourth quarter ending
December 31, 2006 was $375,000 ($0.29 per share) compared to
$1,348,000 ($1.05 per share) in 2005. Randall G. Fox, chairman of
the Corporation and Oxford Bank, together with Corporate and Bank
President and CEO Jeffrey M. Davidson, issued the report and
commented, "As with most businesses whose primary dealings are tied
to southeast Michigan, earnings at Oxford Bank were significantly
impaired by the unique conditions of our local economy. As we
already know, no other state has recently faced the myriad of
negative economic factors we have been burdened with. Declines in
the State's primary industry, the automobile sector, have resulted
in high local unemployment and job losses, a stagnant housing
market, declining commercial and residential real estate values,
and high incidents of delinquent loans and home foreclosures. For
us, this has translated into lower collateral values, a higher
contribution to the loan loss provision, and shrinking margins.
Despite outstanding efforts by our management team and staff in
managing credit quality in this environment, Oxford Bank was not
immune." Fox went on to say, "Asset growth was further effected by,
both, a strategic restructuring within our investment portfolio and
a decision, in June, to discontinue our indirect vehicle lending
program with local automobile, watercraft, and recreational vehicle
dealers. The latter move was a proactive measure made to inoculate
Oxford Bank from the further instances of delinquent and impaired
vehicle loans throughout southeast Michigan. Each move has helped
improve the quality of our earning assets and did allow us to
generate income in an otherwise negative year." Mr. Davidson added,
"As stated, 2006 was a challenging year; forcing us to decrease the
size of the Bank. However, these measures will allow us to improve
our overall asset quality and create a more efficient balance
sheet. Also, despite a decision to increase our loan loss reserve,
our overall credit quality is sound and our rate of delinquent and
impaired loans remains manageable. We will continue to be nimble
and proactive in 2007, as the forecasts for the local Michigan
economy remain unfriendly." The Corporation's total assets at
December 31, 2006 were $514,934,000, a decrease of 3.92 percent
from one year earlier, whereas total deposits declined 1.69 percent
to $460,151,000 over the same period. In addition, net loans fell
2.18 percent to $378,267,000 during 2006, while shareholders'
equity went up 4.90 percent to stand at $49,940,000 as the year
ended, and book value per share increased $1.83 to end 2006 at
$39.02 per share. Finally, total cash dividends paid during the
year increased by 1.79 percent over those paid in 2005. 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. 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 STATEMENT OF CONDITION* (000's
omitted except for per share data) December 31 2006 2005 ASSETS
Cash and due from banks $15,565 $32,042 Interest-bearing deposits
with bank 284 162 U.S. Treasury securities 0 0 U.S. Government
agency securities 53,501 65,574 State and municipal securities
26,836 32,775 Other securities 7,398 3,230 Federal funds sold
17,450 0 Loans and discounts, net 378,267 386,698 Bank premises and
equipment, net 10,073 10,171 Other assets 5,560 5,282 TOTAL ASSETS
$514,934 $535,934 LIABILITIES Demand deposits $65,193 $71,308
Savings and time deposits 394,958 396,774 Total deposits $460,151
$468,082 TT&L and Other Borrowed Funds 1,321 16,921 Other
liabilities 3,522 3,324 Total liabilities $464,994 $488,327
SHAREHOLDERS' EQUITY Common stock, 3,200,000 shares authorized and
1,279,630 shares issued and outstanding $18,000 $18,000 Surplus
2,000 0 Undivided profits 29,940 29,607 Net unrealized holding
gains (losses) 0 0 Total shareholders' equity $49,940 $47,607 TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $514,934 $535,934 Book value
per share $39.02 $37.19 * Un-audited COMPARATIVE INCOME STATEMENT*
December 31, 2006 (000's omitted except for per share data) YEAR TO
DATE QUARTER ONLY 2006 2005 2006 2005 INTEREST INCOME ACTUAL ACTUAL
ACTUAL ACTUAL INTEREST AND FEES ON LOANS Commercial Loan $10,803
$8,954 $2,663 $2,470 Commercial Paper 0 0 0 0 Installment Loans
4,834 4,668 1,161 1,222 Mortgage Loans 8,829 8,179 1,967 2,234 Open
End Loans 2,686 2,219 659 636 Late Charges & Fees 391 327 100
82 TOTAL 27,543 24,346 6,550 6,645 INTEREST ON INVESTMENTS Fed
Funds Sold 669 321 145 11 Time Balances 7 3 2 2 U.S. Treasury
Securities 0 0 0 0 U.S. Agency Securities 2,180 2,399 550 612 Tax
Exempt Securities 795 882 204 224 Other Securities 376 523 128 88
TOTAL 4,027 4,128 1,029 937 TOTAL INTEREST INCOME 31,570 28,475
7,579 7,582 INTEREST EXPENSE Interest on Deposits 14,383 10,430
3,823 2,938 Interest on Borrowed Funds 131 343 2 143 TOTAL INTEREST
EXPENSE 14,514 10,773 3,825 3,081 NET INTEREST INCOME 17,056 17,701
3,754 4,500 Provision for Loan Losses 2,026 1,680 750 420 NET
INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 15,030 16,021 3,004
4,080 Service Charge Income 1,739 1,617 454 418 Other Operating
Income 1,327 1,464 325 319 NET INTEREST & OTHER INCOME 18,096
19,103 3,782 4,817 OTHER OPERATING EXPENSES Salaries & Employee
Benefits 7,750 7,477 1,778 1,614 Occupancy Expense 1,228 1,267 288
313 Equipment Expense 451 363 126 94 Other Operating Expenses 4,000
3,791 1,055 912 TOTAL OPERATING EXPENSES 13,430 12,898 3,247 2,933
INCOME BEFORE INCOME TAXES 4,667 6,205 535 1,883 Federal Income Tax
1,351 1,784 161 534 NET INCOME FROM OPERATIONS 3,315 4,421 375
1,349 Securities Gains (net of tax) (99) (1) 0 (1) NET INCOME
$3,216 $4,420 $375 $1,348 NET INCOME PER SHARE - 1,279,630 SHARES
OUTSTANDING $2.51 $3.45 $ 0.29 $1.05 * Un-audited DATASOURCE:
Oxford Bank Corporation CONTACT: Anthony P. Lasher of Oxford Bank
Corporation, +1-248-628-2533, or fax, +1-248-969-7230 Web site:
http://www.oxfordbank.com/
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