OXFORD BANK CORPORATION ANNOUNCES SECOND QUARTER 2026 OPERATING RESULTS

Oxford Bank Corporation ("the Company") (OTCQX: OXBC ), the holding company for Oxford Bank ("the Bank"), today announced operating results for the second quarter ended June 30, 2026. The Company reported consolidated net income of $2.71 million, or $1.09 per weighted average share, for the second quarter of 2026, compared to $2.78 million, or $1.13 per share, for the same period one year ago and $1.53 million, or $0.62 per share, in the first quarter of 2026. Chairman, President and CEO David Lamb commented, "Balance sheet trends during the second quarter reflect the normalized growth expectations for our business. Deposits increased $29 million and loans grew $21 million during the quarter, reflecting continued momentum across our Company. This growth is driven by our team's ability to build deep client relationships that foster long-term loyalty and attract higher-value banking relationships. The strength of the Oxford Bank brand continues to support successful expansion into attractive growth niches, including municipal banking and small business lending." Core Earnings, Credit Quality, and Lending Activity "From an operating standpoint, our lending businesses produced another exceptional quarter," Lamb continued. "Oxford Commercial Finance loans and leases reached a record $147 million at June 30, 2026, demonstrating continued demand for the business line's specialized financing solutions. Conventional commercial lending originations also performed well as teams converted strong pipelines into new client relationships while maintaining discipline around underwriting, pricing, and deposit relationship requirements. Growth in conventional commercial balances was moderated by the timing of several planned relationship exits and loan payoffs." "Importantly, earning asset yields continued to increase at a pace that exceeded funding cost pressures. Average earning asset yields expanded to 7.15% during June compared with 6.93% during the prior quarter, supporting margin expansion and overall profitability." Net interest income for the quarter increased $1.02 million, or 10%, compared to the same quarter in 2025 and increased $0.46 million, or 4%, from the first quarter of 2026. Net interest margin expanded to 4.97% year-to-date, compared with 4.79% in the first quarter of 2026, reflecting improving earning asset yields and continued balance sheet optimization. The benefit of higher asset yields more than offset modest increases in funding costs during the period. Provision for credit losses totaled $0.24 million during the quarter, reflecting specific reserve allocations associated with certain nonperforming credits. Net recoveries of approximately $0.13 million partially offset the provision expense. "Our Managed Asset team continues to perform exceptionally well," Lamb noted. "During the first six months of 2026, the team recovered approximately $232 thousand of previously charged-off balances, highlighting both the quality of our workout process and the value of our collateral management efforts. While a small number of nonperforming credits continue to require active management, we remain encouraged by both our collection results and the progress toward resolution." Deposit Trends, Liquidity, and Funding Total assets increased to $930.5 million at June 30, 2026, compared to $902.1 million at March 31, 2026, reflecting strong deposit growth and continued expansion of earning assets. Total deposits increased to $769.8 million at quarter-end, compared to $740.6 million at March 31, 2026. Bank cost of funds increased modestly to 1.49% year-to-date, compared with 1.47% during the first quarter and 1.31% for full-year 2025. Retail branch deposits remain the foundation of the Bank's low-cost funding base, and the cost of these deposits has remained stable. Recent growth has been supplemented through higher-cost funding channels that now represent a larger proportion of the overall fundin...