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

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.

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SOURCE Oxford Bank Corporation