OXFORD BANK CORPORATION ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 OPERATING RESULTS

Rhea-AI Summary

Oxford Bank (OXBC) reported Q4 2024 earnings of $1.67 million ($0.68 per share), down from $2.36 million ($0.96 per share) in Q4 2023. Full-year 2024 earnings were $9.96 million ($4.05 per share) compared to $12.06 million ($4.94 per share) in 2023.

The company's total assets stood at $811.4 million as of December 31, 2024. Total loans and leases increased by 13% year-over-year to $613.5 million, while deposits decreased to $686.93 million. The net interest margin remained relatively stable at 4.88% in 2024 compared to 4.89% in 2023.

Non-interest expenses increased by $3.9 million due to investments in Oxford Commercial Finance (OCF). The bank's Tier 1 capital ratio was 13.93% of risk-weighted assets, and book value per share increased to $38.98 from $34.15 year-over-year.

Positive

• Net interest income increased by $5.6 million (15.5%) year-over-year
• Total loans and leases grew by $70.8 million (13%) year-over-year
• Assets under management increased to $174 million from $56 million year-over-year
• Book value per share improved to $38.98 from $34.15 year-over-year

Negative

• Q4 2024 earnings decreased to $1.67M from $2.36M year-over-year
• Full-year earnings declined to $9.96M from $12.06M year-over-year
• Non-interest expenses increased by $3.9 million
• Non-accrual loans remained elevated at $9.83 million
• Total deposits decreased to $686.93M from $705.93M year-over-year
• Cost of funds increased to 1.25% from 0.69% year-over-year

OXFORD, Mich., Feb. 6, 2025 /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTC Bulletin Board: OXBC), the holding company for Oxford Bank ("the Bank"), today announced operating results for the fourth quarter ended December 31, 2024.

The Company's quarterly consolidated earnings for the three months ended December 31, 2024, were $1.67 million, or $0.68 per weighted average share, compared to $2.36 million, or $0.96 per weighted average share for the same period one year ago.  Earnings decreased from the third quarter 2024 net income of $2.75 million.  2024 earnings of $9.96 million or $4.05 per share compared to $12.06 million or $4.94 per share in 2023.  President and CEO, David Lamb, commented "Overall, the team's results are solid and compare favorably to our industry. We expect to be better in everything we do to drive value so our team isn't pleased with lower earnings year over year even with comparing to an anomaly of a year in 2023. Our strategy remains consistent which is further developing the Oxford Commercial Finance ("OCF") to be a complement to our robust conventional commercial lending business and earnings performance.  We have seen the results of these additional capabilities strengthen our ability to serve our clients throughout their company's life cycle and across the maturity spectrum of their business' operations.  We remain confident this strategy will continue to deliver consistent value to the communities we serve, with solid short-term and long-term financial success for the Company and value for our stockholders."

Lamb continued, "On a year-over-year basis, overall profitability and efficiency declined modestly.  This was driven primarily by $3.9 million increase to non-interest expense, which was driven by investment in scaling OCF.  Secondarily, profitability was impacted by a $1.4 million increase to provision expense, which was driven primarily by increasing reserves for non-performing loans and secondarily by overall growth in the loan and lease portfolios.  Net interest income, the core earnings engine of our community banking franchise, increased by $5.6 million year-over-year, an increase of 15.5%.  This was primarily driven by robust loan production by the Business Banking team led by EVP Chief Relationship Officer Mark Morrison, supported by ongoing resilience in the core deposit portfolio.  Net interest margin remained consistent, declining one basis point to 4.88% for 2024 from 4.89% in 2023, despite the headwinds of the Bank's asset sensitivity into a declining rate environment.  This outcome was achieved by investing the proceeds of maturing low-yield investment securities into the higher-yielding loan and lease portfolios while maintaining exceptional credit and pricing discipline."

Total Assets of the Company were $811.4 million as of December 31, 2024, compared to $870.50 million at September 30, 2024 and $816.7 million at December 31, 2023.  "The balance sheet has decreased from the prior quarter end, driven primarily by fluctuations in large depositor balances and secondarily by maturities in the wholesale funding portfolio.  The core of our deposit portfolio has continued to grow and serves as our primary funding source, facilitating further decrease in the Bank's amount of wholesale funding.  Liquidity remains strong between cash and readily marketable investments." reported CEO David Lamb.

Total loans and leases at December 31, 2024 were $613.5 million, compared to $596.9 million at September 30, 2024, or $542.6 million at December 31, 2023.  The year-over-year increase of $70.8 million or roughly 13% was primarily driven by $46.9 million net growth in the conventional business loans portfolio and secondarily supported by $26.0 million net growth in Oxford Commercial Finance ("OCF") loans and leases.  CEO Lamb noted, "Our lending activity remains strong without compromising our standards for credit underwriting, pricing discipline, or our strategic focus on cross-selling deposits.  We also believe that we have an opportunity to further enhance profitability from achieving efficiencies of scale within the OCF operations as the business line matures and ensuring our conventional business loan clients honor their commitment to be their primary depository."

Total deposits were $686.93 million as of December 31, 2024, compared to $747.81 million at September 30, 2024 and $705.93 million at December 31, 2023. Overall Bank cost of funds was 1.25% for 2024 compared to 0.69% for 2023.  The Bank's loan and deposit activity in the quarter resulted in a Net Interest Margin ("NIM") of 4.88% for 2024 compared with 4.89% for 2023.  "We continue to be very happy with the stickiness of our deposits and the strength of our client relationships.  This is the foundation of our low-cost funding mix and has allowed us to maintain margin despite operating in a declining rate environment where competition for deposits is very high.  As we manage cost-of-funds and net interest margin, a portion of the deposit balances held by our largest commercial clients have been moved off balance sheet to investments within Oxford Wealth Management.  Assets under management have increased to $174 million at December 31, 2024 compared to $56 million at December 31, 2023."

Non-accrual loans were $9.83 million at December 31, 2024 compared with $9.79 million at December 31, 2023.  The majority of these balances are the same single loan relationship, and a specific reserve was established during 2024 to account for potential loss.  The Business Credit team continues to work diligently and patiently towards resolution and assesses a low probability of loss greater than the reserve.  For 2024, the Bank reported $0.79 million net charge-offs, or 0.14% of average loans and leases.  Lamb commented, "Outside of the one non-performing asset that is skewing our asset quality metrics, the loan book is performing very well.  We expect the loan portfolio to continue to show only modest and isolated losses consistent with or better than industry averages.  The Bank has comparatively low levels of investment real estate and office exposure and a good mix of industry and geography that mitigates concentration risk.  We also actively utilize the SBA and other government guarantee programs to mitigate slight weaknesses in transactions to allow us to continue to provide capital to the businesses within the communities where we live and work."

The Company's total shareholders' equity was $96.08 million as of December 31, 2024, representing book value per share of $38.98, compared to total shareholders' equity of $95.10 million, or $38.58 per share at September 30, 2024 and $83.85 million, or $34.15 per share at December 31, 2023.  The increase in year-over-year equity is mainly a reflection of the positive accretion of retained earnings.  The subsidiary Bank's Tier 1 capital totaled $96.0 million as of December 31, 2024, or 13.93% of risk-weighted assets compared to $87.8 million, or 13.83% of risk-weighted assets as of December 31, 2023.

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 has 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/commercial finance centers in Phoenix, AZ., Wixom, downtown Oxford, and Flint, Michigan.  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 www.oxfordbank.bank.

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)
	December 31
	2024	2023
ASSETS:
Cash and cash equivalents	$        45,275	$        82,919
Interest bearing time deposits in banks	999	5,469
Investment Securities - Available-for-Sale	111,410	141,252
Investment Securities - Held-to-Maturity	1,160	1,170
Loans and Leases	613,484	542,638
Less: Allowance for credit losses	(8,614)	(6,084)
Net loans and leases	604,870	536,554
Premises and equipment, net	9,236	8,522
Other real estate owned	-	-
Goodwill	7,000	7,000
Bank-owned life insurance	11,212	10,850
Equipment on operating leases, net	3,436	3,892
Accrued interest receivable and other assets	16,848	19,038
TOTAL ASSETS	$      811,446	$      816,666
LIABILITIES:
Deposits
Noninterest-bearing	$      273,919	$      292,901
Interest-bearing	413,007	413,027
Total deposits	686,926	705,928
Borrowings	15,779	15,746
Accrued interest payable, taxes and other liabilities	10,772	10,404
TOTAL LIABILITIES	713,477	732,078
SHAREHOLDERS' EQUITY Common stock, no par value; 10,000,000 shares authorized; 2,465,056 and 2,455,341 shares issued and outstanding as of December 31, 2024 and 2023, respectively	30,446	30,135
Retained Earnings	69,204	59,246
Accumulated other comprehensive income (loss), net of tax	(3,569)	(5,531)
Total Shareholders' Equity attributable to Parent	96,081	83,850
Noncontrolling Interest	1,888	738
TOTAL EQUITY	97,969	84,588
TOTAL LIABILITIES & EQUITY	$      811,446	$      816,666
Book value per share	$38.98	$34.15

 

Oxford Bank Corporation Consolidated Statement of Income (Unaudited) (Dollars in thousands except per share data)
	Quarter to Date		Year to Date
	December 31		December 31
	2024	2023	2024	2023
INTEREST INCOME:
Loans and Leases, including fees	12,519	9,676	44,880	34,465
Investment securities:
Taxable	637	722	2,523	3,102
Tax-exempt	14	13	56	53
Interest bearing balances at banks	1,098	610	3,857	3,804
Total Interest Income	14,268	11,021	51,316	41,424
INTEREST EXPENSE:
Interest on deposits	2,582	1,648	9,070	4,973
Interest on borrowed funds	142	138	772	553
Total Interest Expense	2,724	1,786	9,842	5,526
Net Interest Income	11,544	9,235	41,474	35,898
Provision for credit losses	1,736	975	3,274	1,895
Net Interest Income After Provision for Credit Losses	9,808	8,260	38,200	34,003
NON-INTEREST INCOME:
Service charges - deposits	146	149	645	589
ATM fee income	177	184	691	707
Gain on sale of loans	56	120	248	487
Loan servicing income	(22)	(18)	206	303
Commercial finance fee income	-	842	1,793	3,653
Operating lease revenue	168	113	655	276
Income on bank owned life insurance	93	84	362	311
Other	159	634	1,974	2,405
Total Noninterest Income	777	2,108	6,574	8,731
NON-INTEREST EXPENSE:
Salaries and employee benefits	4,642	4,208	18,614	15,956
Occupancy and equipment	597	587	2,321	2,022
Data Processing	1,189	933	4,517	3,778
Other loan expense	323	52	966	239
Other	1,315	1,581	4,879	5,381
Total Noninterest Expense	8,066	7,361	31,297	27,376
Income Before Income Taxes	2,519	3,007	13,477	15,358
Income tax expense	546	350	2,769	2,788
Net Income Before Noncontrolling Interest	1,973	2,657	10,708	12,570
Net income attributable to Noncontrolling Interest	303	296	750	512
Net Income attributable to Parent	$         1,670	$          2,361	$        9,958	$      12,058
Earnings per Weighted Average Share - Basic	$           0.68	$             0.96	$           4.05	$           4.94

 

Oxford Bank Corporation Consolidated Financial Summary and Selected Ratios (Unaudited) (Dollars in thousands except per share data)
	Year to Date
	December 31		Change
	2024	2023	Amount	Percentage
Income Statement
Interest income	$                51,316	$              41,424	$          9,892	23.9 %
Interest expense	9,842	5,526	4,316	78.1 %
Net interest income	41,474	35,898	5,576	15.5 %
Provision for loan loss	3,274	1,895	1,379	72.8 %
Noninterest income	6,574	8,731	(2,157)	(24.7 %)
Noninterest expense	31,297	27,376	3,921	14.3 %
Income before income taxes	13,477	15,358	(1,881)	(12.2 %)
Income tax expense	2,769	2,788	(19)	(0.7 %)
Net income attributable to Noncontrolling Interest	750	512	238	46.5 %
Net Income	$                  9,958	$              12,058	$         (1,862)	-15.44 %
Balance Sheet Data
Total assets	811,446	816,666	(5,220)	(0.6 %)
Earning assets	772,328	690,529	81,799	11.8 %
Total loans	613,484	542,638	70,846	13.1 %
Allowance for credit losses	8,614	6,084	2,530	41.6 %
Total deposits	686,926	705,928	(19,002)	(2.7 %)
Other borrowings	15,779	15,746	33	0.2 %
Liability for unfunded commitments	217	349	(132)	n/a
Total equity	97,969	84,588	13,381	15.8 %
Asset Quality
Other real estate owned	-	-	-	n/a
Net charge-offs (recoveries)	786	1,232	(446)	(36.2 %)
Non-accrual loans	9,829	9,785	44	0.4 %
Nonperforming assets	9,829	9,785	44	0.4 %
Non-accrual loans / total loans	1.60 %	1.80 %	(0.20 %)	(11.2 %)
Allowance for loan credit loss / total loans	1.40 %	1.12 %	0.28 %	25.2 %
Allowance for loan credit loss / non-accrual loans	87.64 %	62.18 %	25.46 %	41.0 %
Performance Measurements
Bank net interest margin (TE)	4.88 %	4.89 %	(0.01 %)	(0.2 %)
Return on average assets (annualized)	1.17 %	1.46 %	(0.29 %)	(19.8 %)
Return on average equity (annualized)	10.93 %	15.68 %	(4.74 %)	(30.3 %)
Equity / Assets	12.07 %	10.36 %	1.72 %	16.6 %
Loans / Deposits	89.3 %	76.9 %	12.4 %	16.2 %
Book value per share	$38.98	$                   34.15	$            4.83	14.1 %
Earnings per weighted average share - basic	$                    4.05	$                     4.94	$           (0.89)	(18.1 %)
Weighted average shares outstanding	2,460,238	2,439,675	20,563	0.8 %

 

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

 

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SOURCE Oxford Bank Corporation

FAQ

What were OXBC's Q4 2024 earnings per share?

Oxford Bank reported earnings of $0.68 per share for Q4 2024, compared to $0.96 per share in Q4 2023.

How much did OXBC's loan portfolio grow in 2024?

OXBC's total loans and leases increased by $70.8 million or 13% year-over-year, reaching $613.5 million by December 31, 2024.

What was OXBC's net interest margin in 2024?

OXBC maintained a net interest margin of 4.88% in 2024, slightly down from 4.89% in 2023.

How much did OXBC's assets under management grow in 2024?

OXBC's assets under management increased to $174 million as of December 31, 2024, compared to $56 million at December 31, 2023.

What was OXBC's book value per share at the end of 2024?

OXBC's book value per share was $38.98 as of December 31, 2024, up from $34.15 at the end of 2023.