OXFORD BANK CORPORATION ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 OPERATING RESULTS

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, 2025.

The Company’s quarterly consolidated earnings for the three months ended December 31, 2025, were $2.30 million, or $0.93 per weighted average share, compared to $1.68 million, or $0.68 per weighted average share for the same period one year ago and $3.06 million, or $1.24 per weighted average share for the third quarter of 2025. 2025 earnings of $10.96 million or $4.44 per share, increased 10% compared to $9.96 million or $4.05 per share in 2024. President and CEO, David Lamb, commented “We made significant progress on several aspects of our business during 2025. Our Business Banking team led by Chief Relationship Officer Morrison produced robust growth from new and existing clients, with the latter being an important referral source of new customers. Our innovation efforts under the leadership of Chief Operating Officer Rosentrater continue to support improvement across the Bank. In 2025 we introduced new treasury management technologies which improve experience and create opportunities with more sophisticated potential clients. Additionally, we have begun to leverage Artificial Intelligence (“AI”) technologies for non-customer impacting activities. While we believe that AI will transform all industries including banking, we also believe that a technology this powerful but still in its infancy needs deliberative implementation. Our goal in 2025 was to build familiarity internally without impacting client experience or exposing us to unintended risk. Overall, we are pleased with financial performance as demonstrated by growth of $1 million, or +10%, in net income compared with 2024. The team delivered this strong performance despite the minor drag on earnings performance from credit-related expenses. We believe this performance represents the engagement and passion our team has to help people.”

Lamb continued, “Comparing to prior year, net interest income grew at a 5% rate. This outcome was achieved despite the negative impact of declining rates on our net interest margin. While headline growth in noninterest expense outpaced this revenue growth, the majority of this expense increase was caused by a one-time charge to establish a $1.8 million valuation reserve against OREO.”

Total Assets of the Company were $1.09 billion as of December 31, 2025, compared to $915.31 million at September 30, 2025 and $811.21 million at December 31, 2024. “The balance sheet has increased significantly, driven by unexpected growth in deposit balances of one large deposit relationship. Our client has noted that much of this growth is temporary due to an M&A transaction and is expected to materially reverse in the first half of 2026. As a result, the Bank has maintained outsized cash balances in anticipation of this deposit outflow. Overall, liquidity remains strong between cash and readily marketable investments, even with the “one off” expected outflow.” reported CEO David Lamb.

Total loans and leases at December 31, 2025, were $661.37 million, compared to $663.06 million at September 30, 2025, or $613.50 million at December 31, 2024. CEO Lamb noted, “Our lending activity remains strong without compromising our standards for credit underwriting, and pricing discipline. I am exceptionally proud of our lending teams achieving 8% year-over-year growth in outstandings while managing their portfolios to maximize value for the Bank and our clients. We’re excited to build on this momentum during 2026 with strong pipelines in both conventional and commercial finance.”

Total deposits were $953.31 million as of December 31, 2025, compared to $783.02 million at September 30, 2025 and $686.93 million at December 31, 2024. Overall Bank cost of funds ticked up one basis point, to 1.31% for full-year 2025, compared with 1.30% through the first three quarters. The Bank’s loan and deposit activity in the quarter resulted in Net Interest Margin (“NIM”) of 5.23% for full-year 2025, up from 4.88% for full-year 2024. “We continue to be pleased with the reliable performance of our loyal deposit base, and the strength of our client relationships. This is the foundation of our low-cost funding mix and has allowed us to produce net interest margins well above peers.”

The allowance for credit loss increased to $8.04 million at December 31, 2025, from $7.71 million at September 30, 2025. Provisions for credit loss of $0.51 million this quarter were driven primarily by an increase to the reserve ratio and secondarily roughly equally by provisions on net portfolio growth and by net charge-offs of $0.17 million. Lamb commented, “We have received investor bids for some foreclosed commercial properties which are measurably below appraised values. The number of assets is quite small so don’t see it as new trend. However, we have proactively established a reserve against OREO to more accurately reflect the current state of market conditions for these properties. We remain confident that our Special Asset team will maximize the value of collateral and mitigate potential losses effectively. Compared to peers, we have low levels of investment real estate and office exposure, with a well-diversified mix of industry and local geography. We expect given the nature of our focus on C&I businesses both conventionally and in Oxford Commercial Finance that we may have higher nonperforming assets than our peer however we continue to remain confident that the impact to earnings will be minor.”

The Company’s total shareholders’ equity was $109.71 million as of December 31, 2025, representing book value per share of $44.31, compared to total shareholders’ equity of $107.36 million, or $43.36 per share at September 30, 2025 and $96.09 million, or $38.98 per share at December 31, 2024. 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 $105.71 million as of December 31, 2025, or 13.94% of risk-weighted assets compared to $103.75 million, or 14.24% of risk-weighted assets as of September 30, 2025, and $95.97 million, or 13.93% as of December 31, 2024.

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


                                                                                              2025           2024




 ASSETS:



        Cash and cash equivalents                            $264,251        $45,281



        Interest bearing time deposits in banks                   496            993



        Investment Securities - Available-for-Sale            115,769        111,410



        Investment Securities - Held-to-Maturity                  585          1,160



        Loans and Leases                                      661,371        613,502



        Less: Allowance for credit losses                     (8,037)       (8,614)



        Net loans and leases                                  653,335        604,888



        Premises and equipment, net                             8,964          9,236



        Other real estate owned, net                            5,451



        Goodwill                                                7,000          7,000



        Bank-owned life insurance                              11,592         11,212



        Equipment on operating leases, net                      4,305          3,436


                                     Accrued interest receivable and other assets           17,223         16,597




          TOTAL ASSETS                            $1,088,971       $811,213






 LIABILITIES:



        Deposits



        Noninterest-bearing                                  $281,063       $273,919



        Interest-bearing                                      672,251        413,007



        Total deposits                                        953,314        686,926



        Borrowings                                             13,835         15,779


                                     Accrued interest payable, taxes and other
                                      liabilities                                           10,389         10,528




          TOTAL LIABILITIES                          977,537        713,233






 SHAREHOLDERS' EQUITY


                                     Common stock, no par value; 10,000,000 shares
                                      authorized;


                                     2,476,160 and 2,465,056 shares issued and
                                      outstanding as of


                                     December 31, 2025 and 2024, respectively               30,841         30,445



        Retained Earnings                                      80,181         69,216


                                     Accumulated other comprehensive income (loss), net
                                      of tax                                               (1,311)       (3,569)


                                     Total Shareholders' Equity attributable to
                                      Parent                                               109,711         96,092



        Noncontrolling Interest                                 1,722          1,888




          TOTAL EQUITY                               111,433         97,980






          TOTAL LIABILITIES & EQUITY              $1,088,970       $811,213





                                                             Book value per share           $44.31         $38.98




            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


                                                                                                                                       2025           2024          2025          2024




            INTEREST INCOME:


                                                                                        Loans and Leases, including fees             12,355         12,519        48,044        44,880



          Investment securities:



          Taxable                                       899            637         3,269         2,523



          Tax-exempt                                      7             14            47            56


                                                                                        Interest bearing balances at banks              1,677          1,098         2,938         3,857



          Total Interest Income                      14,938         14,268        54,298        51,316






            INTEREST EXPENSE:



          Interest on deposits                        2,973          2,582        10,027         9,070



          Interest on borrowed funds                    122            142           610           772


                                                                                                     Total Interest Expense              3,095          2,724        10,637         9,842






            Net Interest Income                                                         11,843                  11,544              43,661         41,474



          Provision for credit losses                   514          1,736         2,374         3,274


                                                                                        Net Interest Income After Provision for
                                                                                         Credit Losses                           11,329          9,808        41,287        38,200






            NON-INTEREST INCOME:



          Service charges - deposits                    173            146           631           645



          ATM fee income                                171            177           677           691



          Gain on sale of loans                          43             56           502           248



          Business banking income                       337            434         1,668         1,695



          Commercial finance fee income                 259                       1,316         1,793



          Operating lease revenue                       254            168           759           655


                                                                                        Income on bank owned life insurance                 97             93           380           362


                                                                                        Gain (loss) on disposal of fixed assets                                           255



          Other                                         697          (313)        1,778           469



          Total Noninterest Income                    2,031            761         7,966         6,558






            NON-INTEREST EXPENSE:



          Salaries and employee benefits              4,960          4,642        18,941        18,614



          Occupancy and equipment                       695            597         2,892         2,321



          Data Processing and Software                1,090          1,189         4,244         4,517


                                                                                        Legal and other professional fees                259            225         1,386           953



          Other loan expense                            527            323         1,349           966



          Loss (gain) on sale of OREO                                               56



          Writedown on OREO                           1,859                       1,859



          Other                                       1,052          1,064         3,726         3,900



          Total Noninterest Expense                  10,442          8,040        34,453        31,271






            Income Before Income Taxes                                                   2,918                   2,529              14,800         13,487



          Income tax expense                            360            546         2,621         2,769




            Net Income Before Noncontrolling Interest                                    2,558                   1,983              12,179         10,718


                                                                                        Net income attributable to Noncontrolling
                                                                                         Interest                                   262            303         1,215           750



 Net Income attributable to Parent                                                        $2,296                  $1,680             $10,964         $9,968







              Earnings per Weighted Average Share - Basic                   $0.93                   $0.68               $4.44          $4.05




            Oxford Bank Corporation

            Consolidated Financial Summary and Selected Ratios (Unaudited)
                                                         (Dollars in thousands except per share data)





       Year to Date



          December 31
          Change


                                                                                              2025             2024                   Amount          Percentage






 Income Statement

---


 Interest income                                       $54,298          $51,316                    $2,982               5.8 %



 Interest expense                                       10,637            9,842                       795               8.1 %



 Net interest income                                    43,661           41,474                     2,187               5.3 %



 Provision for loan loss                                 2,374            3,274                     (900)           (27.5 %)



 Noninterest income                                      7,966            6,558                     1,408              21.5 %



 Noninterest expense                                    34,453           31,271                     3,182              10.2 %



 Income before income taxes                             14,800           13,487                     1,313               9.7 %



 Income tax expense                                      2,621            2,769                     (148)            (5.3 %)


                                     Net income attributable to
                                      Noncontrolling Interest                              1,215              750                       465              62.0 %


                                                                 Net Income                $10,964           $9,968                      $996              10.0 %








 Balance Sheet Data

---


 Total assets                                        1,088,971          811,213                   277,758              34.2 %



 Earning assets                                        778,221          727,065                    51,156               7.0 %



 Total loans                                           661,371          613,502                    47,869               7.8 %



 Allowance for credit losses                             8,037            8,614                     (577)            (6.7 %)



 Total deposits                                        953,314          686,926                   266,388              38.8 %



 Other borrowings                                       13,835           15,779                   (1,944)           (12.3 %)


                                     Liability for unfunded commitments                        473              217                       256             118.0 %



 Total equity                                          111,433           97,980                    13,453              13.7 %








 Asset Quality

---


 Other real estate owned, net                            5,451                                     5,451                 n/a



 Net charge-offs (recoveries)                            2,755              786                     1,969             250.5 %



 Non-accrual loans                                      15,540            9,829                     5,711              58.1 %



 Nonperforming assets                                   20,991            9,829                    11,162             113.6 %


                                     Non-accrual loans /total loans                         2.35 %          1.60 %                   0.75 %             46.7 %


                                     Allowance for loan credit loss /total
                                      loans                                                 1.22 %          1.40 %                 (0.19 %)           (13.5 %)


                                     Allowance for loan credit loss /non-accrual
                                      loans                                              51.72 %         87.64 %                (35.92 %)           (41.0 %)








 Performance Measurements

---


 Bank net interest margin (TE)                          5.23 %          4.88 %                   0.35 %              7.2 %


                                     Return on average assets (annualized)                  1.23 %          1.17 %                   0.06 %              5.3 %


                                     Return on average equity (annualized)                 10.55 %         10.94 %                 (0.39 %)            (3.6 %)



 Equity / Assets                                       10.23 %         12.08 %                 (1.85 %)           (15.3 %)



 Loans / Deposits                                       69.4 %          89.3 %                 (19.9 %)           (22.3 %)



 Book value per share                                   $44.31           $38.98                     $5.33              13.7 %


                                     Earnings per weighted average share -
                                      basic                                                  $4.44            $4.05                     $0.38               9.5 %


                                     Weighted average shares outstanding                 2,471,533        2,460,238                    11,295               0.5 %



          Contact:                David P. Lamb, Chairman, President &
                                    CEO



          Phone:
          (248) 628-2533



          Fax:
          (248) 969-7230


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SOURCE Oxford Bank Corporation

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