OXFORD, Mich., Feb. 8 /PRNewswire-FirstCall/ -- Oxford Bank
Corporation (OTC:OXBC) (BULLETIN BOARD: OXBC) , the holding company
for Oxford Bank, today announced total operating results for 2007
and for the fourth quarter of the year. For the twelve months ended
December 31, 2007, the Corporation recorded a net loss of
$5,928,000, or $4.87 per share, compared to net income of
$3,216,000, or $2.51 per share for 2006. This outcome was largely
impacted by a $7.2 million provision for loan loss in the fourth
quarter. In addition, results for the fourth quarter of 2007 were a
net loss of $5,246,000, or $4.53 per share versus net income of
$375,000, or $0.29 per share, for the same three-month period in
2006. Jeffrey M. Davidson, chairman, president, and chief executive
officer of the Corporation, issued the report and commented, "2007
proved to be one of the most challenging years in Oxford Bank's
124-year history. As I have stated in the past, a community bank
shares a far more symbiotic relationship with its customers, and
its surrounding communities, than larger counterparts who have
greater access to a more diversified asset base. Oxford Bank has
been severely impacted by a still deteriorating southeastern
Michigan economy. Large scale job losses and corporate
restructuring within the automotive industry over the past two
years has had a devastating ripple effect throughout our region,
resulting in a tidal wave of residential home foreclosures and
declining property values. As a result, we made substantial
contributions to our loan loss reserve in 2007, primarily in the
fourth quarter, to offset this anomaly and prepare for a 2008 that
promises to be equally challenging economically. Approximately
three-quarters of our losses stem from non-homeowner occupied real
estate loans. Many of these loans were made to local builders and
individuals who once represented strong, long-term relationships
but are now struggling to work out of difficulties in their own
industries." Davidson added, "It is important to note that our
asset quality issues are not related to the well-publicized
'sub-prime meltdown' affecting the rest of our nation. Oxford Bank
has very minimal exposure to sub-prime mortgages as defined by our
regulators, either in terms of loans on our books or securities in
our investment portfolio." Davidson went on to say, "We feel our
management of the Bank's provision for loan losses represents a
vigorous, pro-active approach as we head into 2008. With the help
of an independent third party loan review firm, we spent the last
half of 2007 meticulously scrutinizing and re-assessing the quality
of each loan in our portfolio. Furthermore, we constantly keep
watch over local, state, and national economies in hopes of
minimizing the negative effects of any further declines we may see
in the coming year. We feel we have taken every sensible action at
our disposal to position ourselves to see improved results in
2008." Davidson concluded, "The effects of the local economy on our
institution have been well-documented in this, and in previous,
correspondence. However, I would be remiss if I did not mention
that these occurrences have given our institution an opportunity to
identify areas where our business model could be improved. Based on
the information gathered during internal and external audits, we
have implemented these improvements and will be stronger and more
efficient as a result. It is also important to note that because of
the prudent decisions made in the past by management and the board,
Oxford Bank is a well-capitalized institution, with strong
liquidity, which will enable us to weather this storm as we have
others throughout our long and celebrated history." The
Corporation's total assets at December 31, 2007 were $462,460,000,
a decrease of 10.24 percent from one year earlier, whereas total
deposits declined 8.56 percent to $420,749,000 over the same
period. In addition, net loans fell 15.22 percent to $320,691,000
during 2007, while shareholders' equity decreased 24.35 percent to
stand at $37,734,000 as the year ended. The decline in
shareholder's equity is directly related to both the stock
repurchase program initiated in April of 2007 as well as our need
to fund the loan loss reserve. 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 http://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 STATEMENT OF CONDITION* (000's omitted except for per
share data) December 31 2007 2006 ASSETS Cash and due from banks $
12,722 $ 15,849 Interest-bearing deposits with bank 699 217 Federal
funds sold 49,380 17,450 Investment securities - available for sale
39,611 73,080 Investment securities - held to maturity 13,913
13,444 Other securities 1,096 1,096 Loans, net 320,691 378,267 Bank
premises and equipment, net 9,596 10,073 Accrued interest
receivable and other assets 14,752 5,722 TOTAL ASSETS $ 462,460 $
515,198 LIABILITIES Demand deposits $ 29,022 $ 65,164 Savings and
time deposits 391,727 394,958 Total deposits 420,749 460,122
TT&L and Other Borrowed Funds 681 1,321 Accrued interest
payable, taxes and other liabilities 3,296 3,873 Total liabilities
424,726 465,316 SHAREHOLDERS' EQUITY Common stock, 3,200,000 shares
authorized and 1,156,690 16,271 18,000 1,279,630 shares issued and
outstanding at December 31, 2007 and 2006, respectively Undivided
profits 21,053 32,050 Accumulated other comprehensive income (loss)
410 (168) Total shareholders' equity 37,734 49,882 TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $ 462,460 $ 515,198 Book value
per share $32.62 $38.98 * Un-audited COMPARATIVE INCOME STATEMENT*
December 31, 2007 (000's omitted except for per share data) YEAR TO
DATE QUARTER ONLY 2007 2006 2007 2006 INTEREST INCOME ACTUAL ACTUAL
ACTUAL ACTUAL INTEREST AND FEES ON LOANS Commercial $10,806 $10,803
$2,491 $2,663 Installment 3,730 4,834 823 1,161 Mortgage 7,172
8,829 1,630 1,967 Open End Loans 2,606 2,686 638 659 Late Charges
& Fees 454 391 122 100 TOTAL 24,768 27,543 5,704 6,550 INTEREST
ON INVESTMENTS Fed Funds Sold 2,172 669 441 145 Time Balances 14 7
3 2 U.S. Agency 1,582 2,180 289 550 Tax Exempt 754 795 185 204
Other Securities 452 376 139 128 TOTAL 4,974 4,027 1,057 1,029
TOTAL INTEREST INCOME 29,742 31,570 6,761 7,579 INTEREST EXPENSE
Interest on Deposits 14,695 14,383 3,343 3,823 Interest on Borrowed
Funds 27 131 6 2 TOTAL INTEREST EXPENSE 14,722 14,514 3,349 3,825
NET INTEREST INCOME 15,021 17,056 3,410 3,754 Provision for Loan
Losses 11,997 2,026 7,277 750 NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 3,024 15,030 (3,868) 3,004 Service Charge Income
1,717 1,739 446 454 Other Operating Income 1,461 1,327 295 325 NET
INTEREST & OTHER INCOME 6,202 18,096 (3,127) 3,782 OTHER
OPERATING EXPENSES Salaries & Employee Benefits 7,413 7,750
1,907 1,778 Occupancy Expense 1,360 1,228 329 288 Equipment Expense
501 451 122 126 Other Operating Expenses 6,269 4,000 2,877 1,055
TOTAL OPERATING EXPENSES 15,543 13,430 5,235 3,247 INCOME (LOSS)
BEFORE INCOME TAXES (9,341) 4,667 (8,362) 535 Federal Income Tax
Expense (Benefit) (3,413) 1,351 (3,116) 161 NET INCOME (LOSS) FROM
OPERATIONS (5,928) 3,315 (5,246) 375 Securities Gains (net of tax)
0 (99) 0 0 NET INCOME (LOSS) ($ 5,928) $ 3,216 ($5,246) $ 375
EARNINGS (LOSS) PER SHARE ($ 4.87) $ 2.51 ($ 4.53) $ 0.29 *
Un-audited DATASOURCE: Oxford Bank Corporation CONTACT: Anthony P.
Lasher of Oxford Bank Corporation, +1-248-628-2533, +1-248-969-7230
fax Web site: http://www.oxfordbank.com/
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