Oxford Bank Corporation (OTC Bulletin Board: OXBC), the holding company for Oxford Bank, today announced earnings for the first half and second quarter of 2006. During the first six months of the year, net income was $2,011,000 or $1.57 per share. This is 3.50 percent more than earnings during the same period last year when net income was $1,943,000 or $1.52 per share. Net income for the second quarter of 2006 was $1,090,000 ($0.85 per share) or 12.26 percent more than our earnings during the same three months of 2005 when the Corporation reported net income of $971,000 or $0.76 per share.

The Corporation's total assets as of June 30, 2006 were $516,390,000, compared to $518,478,000 on the same date in 2005. In the same twelve-month period, net loans outstanding increased 11.74 percent to $391,975,000, while total deposits grew 1.23 percent to $463,067,000 and shareholders' equity went up 5.66 percent to $48,905,000.

Randall G. Fox, chairman of the Corporation and Oxford Bank, together with Corporate and Bank President and CEO Jeffrey M. Davidson, issued the report and commented, "I am pleased to announce a solid increase in net income during the first six months of the year. This growth is of note primarily because Oxford Bank still faces many of the same issues that impacted our first- quarter earnings report. A lagging Michigan economy, rising interest rates, and a growing number of competitors in our market area continue to provide challenges for our management team. The effect of these dynamics is reflected in the continued strain on our net interest margin due to the inflated cost of obtaining core deposits. However, as in the past, management continues to do an outstanding job of controlling those expenses related to facilities and staffing, which helps counter balance some margin pressure and has allowed us to meet income objectives year to date."

Mr. Davidson added, "While growth in our overall loan portfolio is healthy and credit quality remains good, there has been one casualty resulting from the ongoing struggles in our local and State economies. Earlier this month, Oxford Bank discontinued its indirect vehicle-lending program. While this action will encumber income in the third quarter, the long-term impact will produce a more efficient balance sheet from which to draw future earnings. If we maintain our disciplined approach to operations, Oxford Bank should be in good position to improve on 2005 earnings by the end of 2006."

Oxford Bank Corporation is a registered holding company with over $500 million in total assets. Its subsidiary, Oxford Bank, 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 lending office in Lake Orion. The Bank has operated continuously under local ownership and management since it first opened for business in 1884. It was recently selected by the Michigan Business & Professional Association as one of "Metropolitan Detroit's 101 Best and Brightest Companies to Work For" in 2004.

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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