Source: Sherman Publications

Oxford Bank terminates merger with Level One

by CJ Carnacchio

May 15, 2013

The Oxford Bank Corporation, the holding company for Oxford Bank, announced the termination of the merger with the Farmington Hills-based Level One Bank.

The company’s Board of Directors, after consultation with its legal counsel and financial advisor, terminated the Merger Agreement on May 14, 2013

Under the terms of the company’s agreement with Level One, either party had a right to terminate the contract, without penalty, if the transaction was not closed before May 13, 2013.

The Board of Directors of the company took into consideration a number of factors in making its decision.

These factors included the continuation of the operating restrictions imposed on Oxford Bank under the merger agreement, the uncertainty of the timetable for closing the merger, the difficulty that the uncertainty caused in maintaining qualified staff, and the improving financial condition of the Bank.

The Board of Directors is currently evaluating alternatives and updating its capital plan in order to meet the minimum capital requirements of bank regulatory agencies.

Oxford Bank announced continuing improved operating results for December 31, 2012 and March 31, 2013.

The Company recorded year-end 2012 unaudited profit of $2.8 million, or $2.43 per share, compared to just over $4 million, or $3.49 per share for the same period one year ago.

Year-end 2012 core profit totaled $1.9 million, or $1.67 per share, compared to 2011 core profit of $1.2 million, or $1.04 per share.

First quarter 2013 profit totaled just over $500,000, or $0.43 per share, compared to $443,000, or $0.38 per share for the same period in 2012. The Bank has now been profitable for ten (10) consecutive quarters.

The Bank’s Tier I Capital Ratio has increased from a low of $7.1 million, or 2.44% at the end of the third quarter of 2010 to $14.3 million, or 5.43 percent as of March 31, 2013.