OXFORD BANK CORPORATION ANNOUNCES THIRD QUARTER 2024 AND NINE-MONTH OPERATING RESULTS

OXFORD, Mich., Nov. 5, 2024 /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTC Bulletin Board: OXBC), the holding company for Oxford Bank ("the Bank"), today announced operating results for the third quarter ended September 30, 2024.

The Company's quarterly consolidated earnings for the three months ended September 30, 2024, were $2.75 million, or $1.12 per weighted average share, compared to $3.15 million, or $1.28 per weighted average share for the same period one year ago. Earnings increased $0.49 million over the second quarter 2024 net income of $2.26 million. Year-to-date earnings for the first three quarters of 2024 were $8.29 million or $3.37 per share compared to $9.70 million or $3.98 per share in 2023. President and CEO, David Lamb, commented "As we expected, our quarter-over-quarter earnings have improved with ROAA remaining steady given that our balance sheet size was slightly increased. Our decrease in earnings year-over-year was mainly caused by slightly tighter margins driven by higher market deposit costs. On a quarter-over-quarter basis we have seen the ACL provision normalize and wholesale funding balances decrease due to positive deposit activity. We remain pleased with our earnings metrics and believe that we can maintain a very strong margin even in the potentially falling rate environment. Even though we have an asset sensitive balance sheet, the diversity of our product mix, disciplined loan pricing, and sticky deposit base should allow for a very comparatively strong NIM and earnings metrics.

Total Assets of the Company were $870.50 million as of September 30, 2024, compared to $794.34 million on September 30, 2023. "The balance sheet has grown year-over-year as a result of deposit and loan growth. The core of our deposit portfolio has remained resilient as our primary funding source, and we have decreased the Bank's amount of wholesale funding even further with excellent deposit activity in Q3. The investment portfolio size is normalizing down slightly as we utilize some cash flows for lending activities while maintaining a duration of roughly two years until the yield curve normalizes. Given the composition of the investment portfolio being heavily weighted in relatively short US Treasury obligations, the Company does not carry significant levels of unrealized losses, which also provides flexibility. Liquidity remains very strong between cash and readily marketable investments. Robust loan growth in the first half of the year has slowed as disciplined pricing has been maintained with further emphasis on total relationships required," reported CEO David Lamb.

Net loans at third quarter-end 2024 were $590.04 million, compared to $521.67 million at the end of the third quarter 2023, an increase of $68.37 million or roughly 13%. The main drivers of the ...