OXFORD COMMERCIAL FINANCE, A SUBSIDIARY OF OXFORD BANK, ANNOUNCES THE ACQUISITION OF THE ASSETS OF FSW FUNDING

Rhea-AI Summary

On April 4, 2022, Oxford Commercial Finance Corp. (OCF), a subsidiary of Oxford Bank, announced the acquisition of FSW Funding's assets, including their team. This deal adds approximately $25 million in high-yield factoring assets to OCF. Robyn Barrett, owner of FSW Funding, will join as SVP, managing the Working Capital Division. The transaction includes an asset acquisition and the assumption of certain liabilities, with approximately 31,000 shares issued as part of the consideration. This acquisition aims to enhance OCF's capabilities and strengthen its market position.

Positive

• Acquisition of approximately $25 million in high-yield factoring assets.
• Hiring of Robyn Barrett adds expertise and leadership to OCF.
• Strengthens the Working Capital Division, potentially increasing revenue.

Negative

• Issuance of approximately 31,000 shares may lead to shareholder dilution.

OXFORD, Mich., April 4, 2022 /PRNewswire/ -- Oxford Commercial Finance Corp.("OCF"), a wholly owned subsidiary of Oxford Bank, is pleased to announce the acquisition of the assets of FSW Funding and hiring their entire team today. Ms. Robyn Barrett, Owner and Managing Member of FSW Funding, will join the OCF team as SVP - Managing Director, Working Capital Division and lead that segment for OCF.

CEO David Lamb commented "The addition of approximately $25 million in high yield factoring assets is of course a benefit however we are more excited about having Robyn Barrett and her high performing team join our OCF group. Robyn has a tremendous record of success and I look forward to her being a critical component to grow our working capital division for OCF and being part of the Bank's overall leadership team."

Robyn Barrett, Owner and Managing Member of FSW Funding noted "I know the opportunity available to grow the business and have the team that can make it happen. OCF will bring the only missing piece to grow which is liquidity and capital. I am also excited about the opportunity to help Oxford Bank clients, prospects and community with their working capital needs."

The transaction is an asset acquisition plus assumption of certain liabilities related to those assets. The Bank's parent, Oxford Bank Corporation, is issuing approximately 31,000 shares as part of the consideration to the owners. Other terms of the contract are not disclosed.  

Oxford Commercial Finance Corp. ("OCF") is a wholly owned subsidiary of Oxford Bank. OCF focuses on the commercial finance or alternative asset space with segments being developed in working capital; alternative energy; and leasing across the United States.

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.  The Bank also has a Customer Experience Center in Rochester Hills, MI with transactional services provided by Interactive Teller Machines only. In addition, Oxford Bank has business banking centers in Wixom, downtown Oxford and Flint, MI. 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.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.

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

 

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SOURCE Oxford Bank Corporation

FAQ

What did Oxford Commercial Finance announce on April 4, 2022?

They announced the acquisition of FSW Funding's assets.

What is the value of the assets acquired from FSW Funding?

The acquisition includes approximately $25 million in high-yield factoring assets.

Who will lead the Working Capital Division at OCF?

Robyn Barrett will serve as SVP - Managing Director, leading this division.

How many shares are being issued as part of the acquisition?

Approximately 31,000 shares are being issued as part of the consideration.

What potential impact does the acquisition have on OCF?

It enhances OCF's capabilities and may lead to increased revenue and market presence.