Oxford Bank Corp. in Michigan said Wednesday that it lost $1 million in the first quarter on bad loans and does not expect to be profitable this year.
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The $444 million-asset company earned $413,000 the year earlier. Its loan-loss provision nearly doubled from the year earlier, to $1.3 million, because of troubled mortgages.
Jeffrey M. Davidson, Oxford's chairman, president, and chief executive officer, blamed southeast Michigan's sour economy for a rise in home foreclosures that weighed down Oxford's earnings.
"It will take time for the bank to work through these issues and reduce our inventory of homes, as any improvements are largely reliant on the regional and local housing markets," he said in a press release.
