OXFORD BANK CORPORATION ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 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, 2024.

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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 expressionsare 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 CorporationConsolidated Balance Sheet (Unaudited)(Dollars in thousands except per share data) December 31 2024 2023ASSETS:Cash and cash equivalents $ 45,275 $ 82,919Interest bearing time deposits in banks 999 5,469Investment Securities – Available-for-Sale 111,410 141,252Investment Securities – Held-to-Maturity 1,160 1,170Loans and Leases 613,484 542,638Less: Allowance for credit losses (8,614) (6,084)Net loans and leases 604,870 536,554Premises and equipment, net 9,236 8,522Other real estate owned – -Goodwill 7,000 7,000Bank-owned life insurance 11,212 10,850Equipment on operating leases, net 3,436 3,892Accrued interest receivable and other assets 16,848 19,038TOTAL ASSETS $ 811,446 $ 816,666LIABILITIES:DepositsNoninterest-bearing $ 273,919 $ 292,901Interest-bearing 413,007 413,027Total deposits 686,926 705,928Borrowings 15,779 15,746Accrued interest payable, taxes and other liabilities 10,772 10,404TOTAL LIABILITIES 713,477 732,078SHAREHOLDERS'EQUITY 30,446 30,135Common stock, no par value; 10,000,000 shares authorized;2,465,056 and 2,455,341 shares issued and outstanding as ofDecember 31, 2024 and 2023, respectivelyRetained Earnings 69,204 59,246Accumulated other comprehensive income (loss), net of tax (3,569) (5,531)Total Shareholders' Equity attributable to Parent 96,081 83,850Noncontrolling Interest 1,888 738TOTAL EQUITY 97,969 84,588TOTAL LIABILITIES & EQUITY $ 811,446 $ 816,666Book value per share $38.98 $34.15Oxford Bank CorporationConsolidated Statement of Income (Unaudited)(Dollars in thousands except per share data) Quarter to Date Year to Date December 31 December 31 2024 2023 2024 2023INTEREST INCOME:Loans and Leases, including fees 12,519 9,676 44,880 34,465Investment securities:Taxable 637 722 2,523 3,102Tax-exempt 14 13 56 53Interest bearing balances at banks 1,098 610 3,857 3,804Total Interest Income 14,268 11,021 51,316 41,424INTEREST EXPENSE:Interest on deposits 2,582 1,648 9,070 4,973Interest on borrowed funds 142 138 772 553Total Interest Expense 2,724 1,786 9,842 5,526Net Interest Income 11,544 9,235 41,474 35,898Provision for credit losses 1,736 975 3,274 1,895Net Interest Income After Provision for Credit Losses 9,808 8,260 38,200 34,003NON-INTEREST INCOME:Service charges – deposits 146 149 645 589ATM fee income 177 184 691 707Gain on sale of loans 56 120 248 487Loan servicing income (22) (18) 206 303Commercial finance fee income – 842 1,793 3,653Operating lease revenue 168 113 655 276Income on bank owned life insurance 93 84 362 311Other 159 634 1,974 2,405Total Noninterest Income 777 2,108 6,574 8,731NON-INTEREST EXPENSE:Salaries and employee benefits 4,642 4,208 18,614 15,956Occupancy and equipment 597 587 2,321 2,022Data Processing 1,189 933 4,517 3,778Other loan expense 323 52 966 239Other 1,315 1,581 4,879 5,381Total Noninterest Expense 8,066 7,361 31,297 27,376Income Before Income Taxes 2,519 3,007 13,477 15,358Income tax expense 546 350 2,769 2,788Net Income Before Noncontrolling Interest 1,973 2,657 10,708 12,570Net income attributable to Noncontrolling Interest 303 296 750 512Net Income attributable to Parent $ 1,670 $ 2,361 $ 9,958 $ 12,058Earnings per Weighted Average Share – Basic $ 0.68 $ 0.96 $ 4.05 $ 4.94Oxford Bank CorporationConsolidated Financial Summary and Selected Ratios (Unaudited)(Dollars in thousands except per share data) Year to Date December 31 Change 2024 2023 Amount PercentageIncome StatementInterest 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 DataTotal 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/aTotal equity 97,969 84,588 13,381 15.8%Asset QualityOther real estate owned – – – n/aNet 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 MeasurementsBank 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 & CEOPhone: (248) 628-2533Fax: (248) 969-7230

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