OXFORD, Mich., Oct. 29, 2026 /PRNewswire/ -- Oxford Bank Corporation ("the Company") (OTCQX: OXBC), the holding company for Oxford Bank ("the Bank"), today announced operating results for the third quarter ended September 30, 2026.
The Company reported consolidated net income attributable to the parent company of $3.8 million, or $1.52 per share, for the third quarter ended September 30, 2026. This compares with $3.1 million, or $1.24 per share, for the third quarter of 2025. Third-quarter net income increased approximately 24%, while earnings per share increased approximately 23% from the prior-year quarter. Core net income attributable to the parent company for the quarter totaled $2.9 million, or $1.18 per share, compared with $2.9 million, or $1.19 per share, for the same period in 2025.
For the first nine months of 2026, net income attributable to the parent company totaled $8.0 million, or $3.23 per share, compared with $8.7 million, or $3.51 per share, for the same period in 2025. Core net income attributable to the parent company totaled $7.3 million, or $2.94 per share, compared with $8.3 million, or $3.38 per share, for the same period in 2025. Year-to-date results reflect continued growth in net interest income, offset by higher operating expenses and an increased provision for credit losses.
Balance Sheet Growth and Capital
Total assets were $969.4 million at September 30, 2026, an increase of $54.1 million, or 5.9%, from $915.3 million at September 30, 2025.
Loans and leases increased $64.3 million, or 9.7%, to $727.3 million, compared with $663.1 million one year earlier. Total deposits increased $58.6 million from the prior quarter, with growth coming from Municipal Banking and Conventional Business Banking. Municipal Banking balances exceeded $100 million at September 30, 2026. Strong deposit growth facilitated the repayment of all outstanding FHLB advances and reduction in brokered deposit utilization.
Total equity increased $9.7 million, or 8.9%, to $118.7 million. Tangible book value per share increased 8.4% to $43.75, compared with $40.36 at September 30, 2025.
Revenue Performance
Net interest income for the third quarter was $12.5 million, an increase of 12.5% from $11.1 million in the prior-year quarter. For the first nine months of 2026, net interest income increased 11.1% to $35.4 million, compared with $31.8 million for the same period in 2025. Growth in the balance sheet has driven the increasing net interest income, with net interest margins remaining stable in the mid-5s. We are pleased to effectively deploy our growing capital base into larger earning asset portfolios without compressing our best-in-class net interest margin.
Third-quarter noninterest income totaled $3.7 million, compared with $1.9 million in the third quarter of 2025. Year-to-date noninterest income was $7.3 million, an increase of 22.4% from $5.9 million during the first nine months of 2025. This increase was largely due to the $1.1 million one-time gain on sale from disposal of the former Business Solutions Center and Operations Center. Q3 Gains on Sale of SBA Loans were the strongest in several quarters, and a robust pipeline bodes well for closing out the year strong.
Expenses and Credit Provision
Noninterest expense was $9.8 million for the third quarter, compared with $8.0 million in the prior-year quarter. For the first nine months of 2026, noninterest expense totaled $29.0 million, compared with $24.0 million for the same period in 2025. The largest year-over-year increases were in salaries and employee benefits, data processing and software, other loan expense, and other operating expense. Our loan expense is higher than normal due to the extended work-out time on two longstanding larger workouts.
The provision for credit losses was $992,000 for the third quarter and $2.2 million for the first nine months of 2026, compared with $863,000 and $1.9 million, respectively, for the corresponding 2025 periods. The allowance for credit losses was $10.8 million at September 30, 2026, compared with $7.7 million one year earlier, representing approximately 1.48% of total loans and leases at September 30, 2026. This ratio increased from 1.34% at June 30, 2026 and has the Bank well positioned going forward. The additional reserves allow the Bank to experience charge-offs as we resolve non-performing loans in coming quarters, while still remaining appropriately reserved after utilizing the specific reserves associated with those loans. Additionally, we are encouraged by accruing 30-89 days delinquencies declining even further, to a negligible $61,000 at September 30, 2026.
Management Perspective
David Lamb, President, CEO and Chair noted "Our third-quarter results demonstrate continued balance sheet and revenue growth, including strong expansion in loans, deposits and net interest income. At the same time, we have continued to invest in our people, technology and operating capabilities. Our initial expectation is our FYE 2026 net income will be in the range of $11.5-$12.0 million or $10.8-$11.3 million on a core basis, which would equate to $4.33-$4.53 per share noted."
"He added quarterly performance benefited from a gain on the disposal of fixed assets (turning a non-earning asset into earning assets), while year-to-date earnings reflect higher operating expenses and credit loss provisions. We believe this balanced view is important when evaluating the company's underlying franchise, funding base, growth and capital position."
On Asset Quality, Lamb stated "We believe our specific reserves/potential future charge-offs are well accounted for. Our concentration in commercial & industrial lending, including Oxford Commercial Finance ("OCF") working capital, does result in more idiosyncratic issues by borrowers vs. market segment concentration (like say, lodging) collapsing. We will have generally small loan losses as part of our businesses in most economic cycles with the recent performance outlier in our conventional business banking group due to two long-standing work-outs concentrated in terms of resolution time frame. Our expectation is in a recessionary environment we will have significantly lower losses than our peers because we aren't as subject to sector collapse like investment real estate concentrated peers. We also would expect our results will be stronger than peers in a recessionary environment because of the counter-cyclical impact of the OCF business which should grow faster and more profitably as conventional lending decreases."
Selected Financial Highlights
Dollars in thousands, except per-share data Q3 2026 Q3 2025 YTD 2026 YTD 2025
Net interest income $12,538 $11,146 $35,350 $31,818
Provision for credit losses 992 863 2,232 1,860
Noninterest income 3,655 1,917 7,264 5,935
Noninterest expense 9,800 8,048 28,951 24,011
Income before income taxes 5,401 4,152 11,431 11,882
Net income attributable to parent $3,786 $3,063 $8,024 $8,668
Non-core items (tax-effected) ($834)(1) ($132)(2) ($721)(3) ($333)4
Core net income attributable to parent $2,952 $2,931 $7,303 $8,335
Basic earnings per share $1.52 $1.24 $3.23 $3.51
Core earnings per share $1.18 $1.19 $2.94 $3.38
1 Q3'26 core income adjustments include a $14K loss on the sale of OREO and a $1.1 million gain on the sale of fixed
assets
2 Q3'25 core income adjustments include a $56K loss on the sale of OREO and a $223K Gain on extinguishment of
subordinated debt
3 YTD 2026 includes the Q3'26 adjustments above and an additional $33K loss on the sale of OREO and a $110K loss on
the sale of fixed assets
4 YTD 2025 includes the Q3'25 adjustments above and an additional $255K gain on the sale of fixed assets
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 operates 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 and commercial finance centers in Phoenix, AZ, Wixom, downtown Oxford, and Flint, Michigan. Founded in 1884, the Bank has operated continuously under local ownership and management for more than 140 years. For more information, visit www.oxfordbank.bank.
Except for historical information contained herein, certain matters discussed may be deemed forward‑looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially, including changes in interest rates, economic conditions, regulatory policies, competitive factors, and other risks described in the Company's filings. The Company undertakes no obligation to update forward‑looking statements.
Contact:
David P. Lamb, Chairman, President & CEO
Phone: (248) 628-2533
Fax: (248) 969-7230
Oxford Bank Corporation
Consolidated Balance Sheet (Unaudited)
(Dollars in thousands except per share data)
September 30
2026 2025
ASSETS:
Cash and cash equivalents $65,422 $83,017
Interest bearing time deposits
in banks 496
Investment Securities -
Available-for-Sale 130,890 117,808
Investment Securities - Held-
to-Maturity 585 1,160
Loans and Leases 727,334 663,060
Less: Allowance for credit
losses (10,791) (7,713)
Net loans and leases 716,543 655,347
Premises and equipment, net 8,467 8,831
Other real estate owned, net 7,268 7,310
Goodwill 7,000 7,000
Bank-owned life insurance 11,888 11,495
Equipment on operating leases,
net 3,984 4,413
Accrued interest receivable and
other assets 17,350 18,434
TOTAL ASSETS $969,398 $915,311
LIABILITIES:
Deposits
Noninterest-bearing $300,503 $272,742
Interest-bearing 527,876 510,282
Total deposits 828,379 783,024
Borrowings 13,856 13,828
Accrued interest payable, taxes
and other liabilities 8,504 9,503
TOTAL LIABILITIES 850,739 806,355
SHAREHOLDERS' EQUITY
Common stock, no par value;
10,000,000 shares authorized;
2,492,329 and 2,476,160 shares
issued and outstanding as of
September 30, 2026 and 2025,
respectively 31,405 30,891
Retained Earnings 88,288 77,884
Accumulated other comprehensive
income (loss), net of tax (3,154) (1,417)
Total Shareholders' Equity
attributable to Parent 116,539 107,358
Noncontrolling Interest 2,120 1,598
TOTAL EQUITY 118,659 108,956
TOTAL LIABILITIES & EQUITY $969,398 $915,311
Book value per share $46.76 $43.36
Oxford Bank Corporation
Consolidated Statement of Income (Unaudited)
(Dollars in thousands except per share data)
Quarter to Date Year to Date
September 30 September 30
2026 2025 2026 2025
INTEREST INCOME:
Loans and Leases, including fees 14,252 12,409 40,324 35,689
Investment securities:
Taxable 1,044 874 2,920 2,370
Tax-exempt 12 15 40 40
Interest bearing balances at
banks 457 465 1,656 1,261
Total Interest Income 15,765 13,763 44,940 39,360
INTEREST EXPENSE:
Interest on deposits 3,027 2,462 8,712 7,054
Interest on borrowed funds 200 155 878 488
Total Interest Expense 3,227 2,617 9,590 7,542
Net Interest Income 12,538 11,146 35,350 31,818
Provision for credit losses 992 863 2,232 1,860
Net Interest Income After
Provision for Credit Losses 11,546 10,283 33,118 29,958
NON-INTEREST INCOME:
Service charges -deposits 438 158 1,150 458
ATM fee income 177 173 511 506
Gain on sale of loans 502 98 616 459
Business banking income 351 305 1,061 1,331
Commercial finance fee income 458 418 1,074 1,057
Operating lease revenue 223 168 688 505
Income on bank owned life
insurance 100 97 296 283
Gain on disposal of fixed assets 1,070 1,070 255
Other 336 500 798 1,081
Total Noninterest Income 3,655 1,917 7,264 5,935
NON-INTEREST EXPENSE:
Salaries and employee benefits 5,527 4,653 16,423 13,981
Occupancy and equipment 719 767 2,273 2,197
Data Processing and Software 1,257 1,112 3,841 3,154
Legal and other professional fees 492 320 1,140 1,127
Other loan expense 224 227 1,164 822
Loss on sale of OREO 15 56 48 56
Writedown on OREO
Other 1,566 913 4,062 2,674
Total Noninterest Expense 9,800 8,048 28,951 24,011
Income Before Income Taxes 5,401 4,152 11,431 11,882
Income tax expense 945 793 2,142 2,261
Net Income Before Noncontrolling Interest 4,456 3,359 9,289 9,621
Net income attributable to
Noncontrolling Interest 670 296 1,265 953
Net Income attributable to Parent $3,786 $3,063 $8,024 $8,668
Earnings per Weighted Average Share - Basic $1.52 $1.24 $3.23 $3.51
Oxford Bank Corporation
Consolidated Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date
September 30
Change
2026 2025 Amount Percentage
Income Statement
---
Interest income $44,940 $39,360 $5,580 14.2 %
Interest expense 9,590 7,542 2,048 27.2 %
Net interest income 35,350 31,818 3,532 11.1 %
Provision for loan loss 2,232 1,860 372 20.0 %
Noninterest income 7,264 5,935 1,329 22.4 %
Noninterest expense 28,951 24,011 4,940 20.6 %
Income before income taxes 11,431 11,882 (451) (3.8 %)
Income tax expense 2,142 2,261 (119) (5.3 %)
Net income attributable to
Noncontrolling Interest 1,265 953 312 32.7 %
Net Income $8,024 $8,668 $(644) -7.4 %
Balance Sheet Data
---
Total assets 969,398 915,311 54,087 5.9 %
Earning assets 858,809 782,524 76,285 9.7 %
Total loans 727,334 663,060 64,274 9.7 %
Allowance for credit losses 10,791 7,713 3,078 39.9 %
Total deposits 828,379 783,024 45,355 5.8 %
Other borrowings 13,856 13,828 28 0.2 %
Liability for unfunded commitments 255 473 (218) (46.2 %)
Total equity 118,659 108,956 9,703 8.9 %
Asset Quality
---
Other real estate owned, net 7,268 7,310 (42) (0.6 %)
Net charge-offs (recoveries) (284) 2,585 (2,869) (111.0 %)
Non-accrual loans 17,796 15,777 2,019 12.8 %
Nonperforming assets 25,064 23,087 1,977 8.6 %
Non-accrual loans /total loans 2.45 % 2.38 % 0.07 % 2.8 %
Allowance for loan credit loss /total
loans 1.48 % 1.16 % 0.32 % 27.5 %
Allowance for loan credit loss /non-
accrual loans 60.64 % 48.89 % 11.75 % 24.0 %
Performance Measurements
---
Bank net interest margin (TE) 5.20 % 5.27 % (0.07 %) (1.3 %)
Return on average assets (annualized) 1.13 % 1.36 % (0.23 %) (17.2 %)
Return on average equity (annualized) 9.43 % 11.34 % (1.90 %) (16.8 %)
Equity / Assets 12.24 % 11.90 % 0.34 % 2.8 %
Loans / Deposits 87.8 % 84.7 % 3.1 % 3.7 %
Book value per share $46.76 $43.36 $3.40 7.8 %
Earnings per weighted average share -
basic $3.23 $3.51 $(0.28) (7.9 %)
Weighted average shares outstanding 2,483,346 2,469,991 13,355 0.5 %
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SOURCE Oxford Bank Corporation
