Oxford Bank Corporation Announces Improved Second Quarter & Six-Month Operating Results for 2010
OXFORD, Mich., Aug. 3 /PRNewswire-FirstCall/ -- Oxford Bank Corporation ("the Corporation") (OTC Bulletin Board: OXBC), the holding company for Oxford Bank ("the Bank"), today announced improved second quarter and six-month operating results for 2010.
The Corporation reported a 2010 second quarter net loss of $1.241 million, or $1.07 per share, compared to a 2009 second quarter loss of $1.417 million, or $1.22 per share. For the six-month period ending June 30, 2010, the Corporation reported a net loss of $1.217 million, or $1.05 per share, compared to a $1.912 million net loss, or $1.65 per share, for the same period in 2009.
Net interest margin, representing net interest income to average earning assets, was 3.86-percent in the second quarter of 2010. Management was able to improve margin during the quarter despite a decrease in earning assets. This was achieved by strategically reducing funding costs and maintaining asset yields. Total interest expense for the second quarter of 2010 was $0.769 million compared to $1.554 million for the second quarter of 2009, a 50.5-percent decline. For the six-months ending June 30, 2010, interest expense was $1.618 million compared to $3.162 million for the same period of 2009, a decrease of $1.544 million. C. James Bess, president and chief executive officer of the Corporation, issued the results and noted, "An adherence to sound pricing strategies on deposits and loan products during the past twelve months has helped preserve the earnings capacity of the balance sheet. Despite the on-going expense burden related to high levels of non-performing loans, maintenance costs associated with Bank owned property and FDIC insurance premiums, the core earnings of the Bank remain strong."
Noninterest expense was $2.662 million for the second quarter of 2010, compared to $4.344 million for the same quarter of 2009, a 38.7-percent reduction. For the six months ending June 30, 2010, total noninterest expense was $5.246 million, a $2.898 million decline from the $8.143 million reported for the same period of 2009. Mr. Bess explained, "Since June 30, 2009, management has successfully implemented numerous cost-cutting initiatives that have substantially reduced our overall operating expenses. As Oxford Bank continues to experience elevated costs associated with the credit quality issues of the loan portfolio, it is imperative that we maintain an aggressive approach to analyzing and controlling the expense structure of the Bank." Noninterest income for the second quarter of 2010 was $0.433 million. For the six months ending June 30, 2010, noninterest income was $0.811 million compared to $1.993 million for the same period in 2009.
Management also continues to strategically reduce the Bank's assets to preserve capital and reduce costs. Total assets as of June 30, 2010 were $305.261 million, a decline of $60.962 million from June 30, 2009. Despite the asset reduction, liquidity remains strong with a combined total of $86.708 million in cash, cash equivalents and securities.
Oxford Bank is a subsidiary of Oxford Bank Corporation, a registered holding company. It is the oldest commercial bank in Oakland County and operates eight full-service offices in Clarkston, Davison, Dryden, Goodrich, Lake Orion, Oakland Township, Ortonville and Oxford. It also manages a consumer lending center in Oxford and a commercial banking office in Lake Orion. 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.
Oxford Bank Corporation |
|||||||
Consolidated Balance Sheet (Unaudited) |
|||||||
(Dollars in thousands except per share data) |
|||||||
June 30, |
|||||||
2010 |
2009 |
||||||
ASSETS |
|||||||
Cash and due from banks |
$ 45,723 |
$ 42,886 |
|||||
Federal funds sold |
- |
- |
|||||
Total cash and cash equivalents |
45,723 |
42,886 |
|||||
Securities available-for-sale |
34,540 |
50,039 |
|||||
Securities held-to-maturity |
5,349 |
6,571 |
|||||
Federal Home Loan Bank Stock |
1,096 |
1,096 |
|||||
Total securities |
40,985 |
57,706 |
|||||
Portfolio loans |
|||||||
Consumer loans |
39,501 |
53,742 |
|||||
Mortgage loans |
59,007 |
71,413 |
|||||
Commercial loans |
107,699 |
128,067 |
|||||
Total loans |
206,207 |
253,222 |
|||||
Less: Allowance for loan loss |
11,756 |
9,473 |
|||||
Net loans |
194,451 |
243,749 |
|||||
Premises and equipment, net |
8,867 |
9,304 |
|||||
Other real estate owned |
13,854 |
8,873 |
|||||
Accrued interest receivable and other assets |
1,381 |
3,705 |
|||||
TOTAL ASSETS |
$ 305,261 |
$ 366,223 |
|||||
LIABILITIES |
|||||||
Deposits |
|||||||
Noninterest-bearing |
$ 53,769 |
$ 60,653 |
|||||
Interest-bearing |
241,105 |
287,417 |
|||||
Total deposits |
294,874 |
348,070 |
|||||
Short term borrowings |
89 |
459 |
|||||
Accrued interest payable, taxes and other liabilities |
1,936 |
2,276 |
|||||
Total Liabilities |
296,899 |
350,805 |
|||||
SHAREHOLDERS' EQUITY |
|||||||
Common stock, no par value; 10,000,000 shares authorized; |
|||||||
1,156,690 shares issued and outstanding |
16,271 |
16,271 |
|||||
Retained (deficit) earnings |
(7,940) |
(1,072) |
|||||
Accumulated other comprehensive income, net of tax |
31 |
219 |
|||||
Total shareholders' equity |
8,362 |
15,418 |
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 305,261 |
$ 366,223 |
|||||
- |
- |
||||||
Book value per share |
$7.23 |
$13.33 |
|||||
Oxford Bank Corporation |
|||||||||||
Consolidated Statement of Income (Unaudited) |
|||||||||||
(Dollars in thousands except per share data) |
|||||||||||
Quarter to Date |
Year to Date |
||||||||||
June 30, |
June 30, |
||||||||||
2010 |
2009 |
2010 |
2009 |
||||||||
Interest Income |
|||||||||||
Interest and fees on loans |
|||||||||||
Commercial loans |
$ 1,725 |
$ 2,039 |
$ 3,527 |
$ 4,072 |
|||||||
Installment loans |
254 |
438 |
534 |
913 |
|||||||
Mortgage loans |
825 |
1,085 |
1,679 |
2,273 |
|||||||
Open end loans |
332 |
376 |
677 |
797 |
|||||||
Late charges and fees |
46 |
91 |
116 |
150 |
|||||||
Total loan interest and fee income |
3,182 |
4,029 |
6,533 |
8,205 |
|||||||
Interest on investment securities |
|||||||||||
Taxable |
98 |
312 |
224 |
741 |
|||||||
Tax-exempt |
54 |
117 |
112 |
254 |
|||||||
Total investment income |
152 |
429 |
336 |
995 |
|||||||
Total interest income |
3,334 |
4,458 |
6,869 |
9,200 |
|||||||
Interest Expense |
|||||||||||
Interest on deposits |
769 |
1,554 |
1,618 |
3,162 |
|||||||
Interest on borrowed funds |
- |
- |
- |
- |
|||||||
Total interest expense |
769 |
1,554 |
1,618 |
3,162 |
|||||||
Net Interest Income |
2,565 |
2,904 |
5,251 |
6,038 |
|||||||
Provision for loan losses |
1,577 |
1,000 |
2,033 |
1,800 |
|||||||
Net Interest Income After Provision for Loan Losses |
988 |
1,904 |
3,218 |
4,238 |
|||||||
Noninterest Income |
|||||||||||
Service charge income |
274 |
350 |
557 |
676 |
|||||||
Mortgage banking activities |
12 |
65 |
35 |
243 |
|||||||
Other income |
147 |
608 |
219 |
1,074 |
|||||||
Total noninterest income |
433 |
1,023 |
811 |
1,993 |
|||||||
Noninterest Expense |
|||||||||||
Salaries and employee benefits |
1,047 |
1,563 |
2,156 |
3,122 |
|||||||
Occupancy expense |
182 |
257 |
411 |
686 |
|||||||
Equipment expense |
102 |
120 |
207 |
236 |
|||||||
Other Loan Expense |
445 |
890 |
698 |
1,521 |
|||||||
FDIC Insurance |
367 |
592 |
745 |
961 |
|||||||
Other expense |
519 |
922 |
1,029 |
1,617 |
|||||||
Total noninterest expense |
2,662 |
4,344 |
5,246 |
8,143 |
|||||||
Loss Before Income Taxes |
(1,241) |
(1,417) |
(1,217) |
(1,912) |
|||||||
Income tax recovery |
- |
- |
- |
- |
|||||||
Net Loss |
$ (1,241) |
$ (1,417) |
$ (1,217) |
$ (1,912) |
|||||||
Loss per Share - Basic |
$ (1.07) |
$ (1.22) |
$ (1.05) |
$ (1.65) |
|||||||
Oxford Bank Corporation |
||||||||||
Financial Summary and Selected Ratios (Unaudited) |
||||||||||
(Dollars in thousands except per share data) |
||||||||||
Year to Date |
||||||||||
June 30, |
Change |
|||||||||
2010 |
2009 |
Amount |
Percentage |
|||||||
Financial Summary |
||||||||||
Interest Income |
$ 6,869 |
$ 9,200 |
$ (2,331) |
-25.3% |
||||||
Interest Expense |
1,618 |
3,162 |
(1,544) |
-48.8% |
||||||
Net Interest Income |
5,251 |
6,038 |
(786) |
-13.0% |
||||||
Provision for loan loss |
2,033 |
1,800 |
233 |
12.9% |
||||||
Noninterest income |
811 |
1,993 |
(1,183) |
-59.3% |
||||||
Noninterest expense |
5,246 |
8,143 |
(2,898) |
-35.6% |
||||||
Loss before Income Taxes |
(1,217) |
(1,912) |
695 |
36.4% |
||||||
Income tax recovery |
- |
- |
- |
0.0% |
||||||
Net Loss |
$ (1,217) |
$ (1,912) |
$ 695 |
36.4% |
||||||
Balance Sheet Data |
||||||||||
Total assets |
305,261 |
366,223 |
(60,962) |
-16.6% |
||||||
Earning assets |
247,192 |
310,928 |
(63,736) |
-20.5% |
||||||
Total loans |
206,207 |
253,222 |
(47,015) |
-18.6% |
||||||
Allowance for loan loss |
11,756 |
9,473 |
2,283 |
24.1% |
||||||
Total deposits |
294,874 |
348,070 |
(53,196) |
-15.3% |
||||||
Other borrowings |
89 |
459 |
(370) |
-80.6% |
||||||
Shareholders' equity |
8,362 |
15,418 |
(7,056) |
-45.8% |
||||||
Asset Quality |
||||||||||
Other real estate owned |
13,854 |
8,873 |
4,981 |
56.1% |
||||||
Net charge-offs |
3,127 |
2,991 |
136 |
4.6% |
||||||
Non-accrual loans |
13,654 |
11,540 |
2,114 |
18.3% |
||||||
Nonperforming assets |
27,507 |
20,413 |
7,094 |
34.8% |
||||||
Non-accrual loans / total loans |
6.62% |
4.56% |
2.06% |
45.3% |
||||||
Allowance for loan loss / total loans |
5.70% |
3.74% |
1.96% |
52.4% |
||||||
Allowance for loan loss / non-accrual loans |
86.10% |
82.09% |
4.01% |
4.9% |
||||||
Performance Measurements |
||||||||||
Net interest margin (tax equivalent) |
3.86% |
3.86% |
0.00% |
0.0% |
||||||
Return on average assets (annualized) |
-0.61% |
-0.81% |
0.20% |
24.7% |
||||||
Return on average equity (annualized) |
-21.4% |
-17.4% |
-3.9% |
-22.5% |
||||||
Equity / Assets |
2.7% |
4.2% |
-1.5% |
-34.9% |
||||||
Loans / Deposits |
69.9% |
72.8% |
-2.8% |
-3.9% |
||||||
Book Value |
$ 7.23 |
$ 13.33 |
$ (6.10) |
-45.8% |
||||||
Loss per share - Basic |
$ (1.05) |
$ (1.65) |
$ 0.60 |
36.4% |
||||||
Shares Outstanding |
1,156,690 |
1,156,690 |
- |
0.0% |
||||||
Oxford Bank Corporation |
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Financial Summary and Selected Ratios (Unaudited) |
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(Dollars in thousands except per share data) |
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Quarter Ended |
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June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|||||||||
2010 |
2010 |
2009 |
2009 |
2009 |
|||||||||
Financial Summary |
|||||||||||||
Interest Income |
$ 3,334 |
$ 3,535 |
$ 3,777 |
$ 3,995 |
$ 4,458 |
||||||||
Interest Expense |
769 |
848 |
1,109 |
1,346 |
1,554 |
||||||||
Net Interest Income |
2,565 |
2,687 |
2,668 |
2,649 |
2,904 |
||||||||
Provision for loan loss |
1,577 |
456 |
2,591 |
4,961 |
1,000 |
||||||||
Noninterest income |
433 |
377 |
970 |
469 |
1,023 |
||||||||
Noninterest expense |
2,662 |
2,584 |
4,346 |
3,676 |
4,344 |
||||||||
Loss before Income Taxes |
(1,241) |
24 |
(3,299) |
(5,519) |
(1,417) |
||||||||
Income tax expense (recovery) |
- |
- |
(3,166) |
- |
- |
||||||||
Net Loss |
$ (1,241) |
$ 24 |
$ (133) |
$ (5,519) |
$ (1,417) |
||||||||
Balance Sheet Data |
|||||||||||||
Total assets |
305,261 |
314,665 |
327,111 |
345,045 |
366,223 |
||||||||
Earning assets |
247,192 |
267,997 |
278,452 |
298,061 |
312,092 |
||||||||
Total loans |
206,207 |
218,302 |
227,949 |
240,924 |
253,222 |
||||||||
Allowance for loan loss |
11,756 |
12,000 |
12,850 |
13,000 |
9,473 |
||||||||
Total deposits |
294,874 |
302,872 |
315,195 |
332,865 |
348,070 |
||||||||
Other borrowings |
89 |
218 |
414 |
170 |
459 |
||||||||
Shareholders' equity |
8,362 |
9,606 |
9,510 |
10,069 |
15,418 |
||||||||
Asset Quality |
|||||||||||||
Other real estate owned |
13,854 |
10,494 |
9,862 |
11,374 |
8,873 |
||||||||
Net charge-offs |
1,821 |
1,306 |
2,741 |
1,434 |
1,572 |
||||||||
Non-accrual loans |
13,654 |
16,466 |
17,984 |
18,954 |
11,540 |
||||||||
Nonperforming assets |
27,507 |
26,960 |
27,847 |
30,328 |
20,413 |
||||||||
Non-accrual loans / total loans |
6.62% |
7.54% |
7.89% |
7.87% |
4.56% |
||||||||
Allowance for loan loss / total loans |
5.70% |
5.50% |
5.64% |
5.40% |
3.74% |
||||||||
Allowance for loan loss / non-accrual loans |
86.10% |
72.88% |
71.45% |
68.59% |
82.09% |
||||||||
Performance Measurements |
|||||||||||||
Net interest margin (tax equivalent) |
3.86% |
3.85% |
3.58% |
3.46% |
3.75% |
||||||||
Return on average assets (annualized) |
-1.54% |
0.03% |
-0.16% |
-5.98% |
-1.56% |
||||||||
Return on average equity (annualized) |
-55.1% |
1.1% |
-5.6% |
-150.7% |
-34.3% |
||||||||
Equity / Assets |
2.7% |
3.1% |
2.9% |
2.9% |
4.2% |
||||||||
Loans / Deposits |
69.9% |
72.1% |
72.3% |
72.4% |
72.8% |
||||||||
Book Value |
$ 7.23 |
$ 8.30 |
$ 8.22 |
$ 8.71 |
$ 13.33 |
||||||||
Loss per share - Basic |
$ (1.07) |
$ 0.02 |
$ (0.12) |
$ (4.77) |
$ (1.22) |
||||||||
Shares Outstanding |
1,156,690 |
1,156,690 |
1,156,690 |
1,156,690 |
1,156,690 |
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SOURCE Oxford Bank Corporation
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