OXFORD, Mich., May 14 /PRNewswire-FirstCall/ -- Oxford Bank
Corporation (OTC:OXBC) (BULLETIN BOARD: OXBC) , the holding company
for Oxford Bank, today announced total operating results for the
first quarter ending March 31, 2008. A net loss of $1,019,000, or
$0.88 per share was reported, compared to net income of $413,000,
or $0.32 per share earned for the same period in 2007. Jeffrey M.
Davidson, chairman, president, and chief executive officer of the
Corporation, issued the report and commented, "As was the case
throughout much of 2007, Oxford Bank continues to feel the strain
created by systemic problems within the local southeast Michigan
economy. While our net loss during the first three months of the
year was undoubtedly a disappointment, I cannot say that it was
entirely unexpected. We have projected for, and are optimistic that
Oxford Bank will witness, a significant improvement in performance
this year compared to 2007. However, we still do not expect the
Bank to be profitable in 2008. Carrying costs on homes in
foreclosure continue to negatively impact our earnings. We
allocated $1,300,000 in the first quarter to our provision for loan
losses to help offset the impact of credit quality issues currently
affecting our loan portfolio. It will take time for the Bank to
work through these issues and reduce our inventory of homes, as any
improvements are largely reliant on the regional and local housing
markets. Some local economists do not expect expansion of jobs or
acceleration in residential home sales to occur in Oakland County,
the Bank's primary market, until 2009, or beyond." Davidson added,
"There are some positive, albeit tenuous, signs that the
improvements made last year to our lending policies and
underwriting standards are having a positive impact on our credit
quality, as the majority of our problematic loans were written
prior to 2007." Total assets as of March 31, 2008 were
$444,455,000, a 13.2 percent decrease from the same date in 2007.
Total loans fell 13.7 percent to $320,137,000, while total deposits
declined 11.4 percent to $404,747,000 over the same twelve month
period. Finally, total shareholders' equity decreased 26.0 percent
as capital was redistributed to help fund the Bank's loan loss
reserve. However, Oxford Bank's Tier 1 leverage ratio remains above
eight percent, far exceeding the five percent minimum required by
regulators. Davidson went on to say, "Income issues aside, it is
important to note that the proactive approach taken by our senior
management team over the course of the last two years to
restructure our balance sheet has put the Bank in a good position
to take advantage of the current interest rate environment as well
as any improvements in the local economy. With the demand for
commercial, installment and home mortgage loans continuing to
decline and our exit from indirect vehicle lending in 2006, we
embarked on a strategy of decreasing the overall size of the Bank.
Last years restructuring of termed deposits to shorter maturities,
coupled with an assertive re-pricing strategy in 2008, has allowed
the Bank to mitigate the negative impact of the aggressive interest
rate policy exhibited by the Federal Reserve during the first
quarter of the year. As a result, the Bank is witnessing
improvement in net-interest margin and is tracking close to budget
in net interest income before factoring in provision for loan
losses. We are optimistic these trends can continue for the
remainder of the year. Also, our strategic efforts to control
non-interest operational expenses related to staffing and
facilities have been successful." Davidson concluded, "There is
still much work to be done before Oxford Bank returns to
profitability, however, we feel the hard work being exhibited by
our employees at all levels may be starting to pay dividends. We
will continue to vigorously monitor the local economic situation
and take all the necessary actions within our control to mollify
any further negative occurrences and capitalize on any positive
opportunities." 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) March 31, 2008 2007 ASSETS Cash and due from banks $12,208
$13,993 Interest-bearing deposits with banks 718 302 Federal funds
sold 32,070 39,530 Total cash and cash equivalents 44,996 53,825
Securities available-for-sale 48,856 60,154 Securities
held-to-maturity 13,560 13,093 Other securities 1,096 1,096 Total
securities 63,512 74,343 Portfolio loans Consumer loans 72,558
93,841 Mortgage loans 101,648 117,592 Commercial Loans 145,931
159,501 Total loans 320,137 370,934 Less allowance for loan loss
8,423 4,232 Net loans 311,714 366,702 Bank premises and equipment,
net 9,544 9,933 Other real estate owned 7,160 2,315 Accrued
interest receivable and other assets 7,529 4,729 TOTAL ASSETS
$444,455 $511,847 LIABILITIES Deposits Non-interest bearing $60,630
$62,114 Interest bearing 344,117 394,857 Total deposits 404,747
456,971 Short term borrowings 538 663 Accrued interest payable,
taxes and other liabilities 2,105 4,153 Total Liabilities 407,390
461,787 SHAREHOLDERS' EQUITY Common stock, no par value; 3,200,000
shares authorized; 1,156,690 and 1,279,510 shares issued and
outstanding, respectively 16,271 18,000 Retained earnings 20,034
32,100 Accumulated other comprehensive income/(loss), net of tax
760 (40) Total shareholders' equity 37,065 50,060 TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $444,455 $511,847 - - Book value per share
$32.04 $39.12 Oxford Bank Corporation Consolidated Statement of
Income (Unaudited) (Dollars in thousands except per share data)
Year to Date March 31, March 31, 2008 2007 Interest Income Interest
and fees on loans Commercial loans $2,422 $2,802 Installment loans
737 1,057 Mortgage loans 1,554 2,019 Open end loans 582 652 Late
charges and fees 101 107 Total loan interest and fee income 5,396
6,637 Interest on investment securities Taxable 447 634 Tax-exempt
187 199 Total investment income 634 833 Federal funds sold 383 450
Total interest income 6,413 7,920 Interest Expense Interest on
deposits 3,091 3,918 Interest on borrowed funds 2 7 Total interest
expense 3,093 3,925 Net Interest Income 3,320 3,995 Provision for
loan losses 1,300 655 Net Interest Income After Provision for Loan
Losses 2,020 3,340 Noninterest Income Service charge income 362 397
Income from loan sales 150 128 Other income 187 140 Total
noninterest income 699 665 Noninterest Expense Salaries and
employee benefits 1,749 1,989 Occupancy expense 413 375 Equipment
expense 111 114 Other expense 2,125 1,013 Total noninterest expense
4,398 3,491 Income (Loss) Before Income Taxes (1,679) 514 Income
tax expense (recovery) (660) 101 Net Income (Loss) $(1,019) $413
Earnings (Loss) per Share - basic $(0.88) $0.32 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/
Copyright