Main Street Financial Services Corp. Announces Net Income Increase 33% Year-Over-Year in Quarterly Results

2026 First-Quarter Financial Highlights

• Net income increased for the first quarter by 33.0%, totaling $4.8 million, or $0.62 per common share, compared to $3.6 million, or $0.47 per common share, for the first quarter of 2025.
• Return on average common tangible equity (ROCTE) increased 177 basis points to 16.39%, compared to 14.62% in the first quarter of 2025.
• Return on average assets (ROA) improved 27 basis points to 1.30%, compared to 1.03% in the first quarter of 2025.
• Deposit growth of $27.4 million, or 8.2% annualized, for the quarter ended March 31, 2026
• Loan growth of $52.7 million, or 17.4% annualized, for the quarter ended March 31, 2026
• Efficiency ratio of 54.45% compared to 60.87% for the quarter ended March 31, 2025
• Declared a cash dividend of $0.15 per share on April 10, 2026, following strong quarterly operating results.

Wooster, Ohio, April 23, 2026 – Main Street Financial Services Corp. (OTCQX: MSWV), (the “Company”), the holding company parent of Main Street Bank Corp. reported net income (unaudited) of $4.8 million, or $0.62 per common share, for the three months ended March 31, 2026, an increase of $1.2 million, or 33.0%, when compared to $3.6 million, $0.47 per common share, for the quarter ended March 31, 2025. On a non-GAAP basis, excluding non-recurring items which represents the Company’s earnings from ongoing operations, return on average assets increased to 1.30% from 1.03%, and return on average equity rose to 14.95% from 13.27%. The Company’s efficiency ratio improved to 54.45%, compared to 60.87% in the first quarter of 2025, as revenue growth outpaced expense levels.

“We are very pleased with the continued strength in our core business, highlighted by outstanding loan production and solid deposit growth during the quarter,” said Mark R. Witmer, Chairman, President, and CEO of Main Street Financial Services. Corp. “These results reflect the dedication of our team and the strong relationships we continue to build across the communities we serve. At the same time, we are beginning to more fully realize the benefits of our recent merger, as our combined platform enhances our capabilities, improves operating performance, and positions us for continued, sustainable growth while maintaining our relationship-driven approach.”

First Quarter 2026 Financial Results

Net interest income was $13.6 million for the quarter ended March 31, 2026, an increase of 17.8% from $11.5 million for the quarter ended March 31, 2025. The net interest margin of 3.83% for the first quarter of 2026 increased 39 basis points from 3.44% for the first quarter of 2025. Loan yields for the quarter ended March 31, 2026, were 6.55%, an increase of 41 basis points compared to the quarter ended March 31, 2025. Excluding purchase accounting accretion, the core loan portfolio generated a yield of approximately 6.44%, reflecting disciplined pricing and favorable portfolio mix. Purchase accounting accretion on acquired loans contributed 11 basis points to overall loan yield during the first quarter of 2026, compared to approximately 16 basis points during the first quarter of 2025. During the first quarter of 2026, $128.4 million of the existing loan portfolio repriced and the bank funded $63.6 million in term loans and extended $18.1 million of lines of credit commitments at current market rates.

Investment yields increased 43 basis points to 4.32% as of March 31, 2026, compared to the quarter ended March 31, 2025. The increase was due to purchase accounting accretion generated from early redemptions on securities. The cost of funds for the first quarter of 2026 was 2.49%, an increase of 6 basis points when compared to the first quarter of 2025. The cost of funds is impacted by the acquisition of new deposit accounts in the local market at rates and reducing the reliance on wholesale funding, such as FHLB advances. The cost of deposits was 2.44% for the quarter ended March 31, 2026, a 17-basis point increase when compared to 2.27% for the quarter ended March 31, 2025. The cost of borrowings for the quarter ended March 31, 2026, totaled 5.86%, an increase of 154 basis points when compared to the quarter ended March 31, 2025.

A provision for credit losses and unfunded commitments of $528,000 was recorded for the quarter ended March 31, 2026. The provision increase primarily reflects growth in the loan portfolio during the quarter, while charge-offs of $9,000 and recoveries of $46,000 indicate relatively stable asset quality.

Noninterest income totaled $960,000 for the quarter ended March 31, 2026, an increase of $141,000, or 17.2%, when compared to the same period in 2025.

Noninterest expense totaled $7.9 million for the quarter ended March 31, 2026, an increase of $401,000, 5.3%, compared to $7.5 million for the same period in 2025. The increase was driven by an increase in net occupancy and equipment expense, franchise tax, and other expenses. These increases were partially offset by lower professional fees and auditing and accounting expenses. Salaries and employee benefits increased by $55,000 due to merit increases and higher deposit and loan production incentive compensation, partially offset by savings from employee attrition following merger integration. Overall, the Company maintained disciplined expense management while absorbing higher regulatory and operating costs associated with growth.

Provision for income taxes for the quarter ended March 31, 2026, was $1.3 million, reflecting an effective tax rate of 20.8%.

March 31, 2026, Financial Condition

As of March 31, 2026, the Company had total assets of $1.53 billion with net loan balances totaling $1.26 billion. Loan balances grew by $52.7 million, or 17.4% annualized, during the first quarter of 2026. The increase is primarily attributed to $55.8 million growth in the commercial loan portfolio.

The allowance for credit losses was $13.7 million at March 31, 2026, compared to $12.0 million at March 31, 2025. The allowance for credit losses as a percentage of total loans was 1.07% for March 31, 2026, and 1.05% for March 31, 2025. The allowance for credit losses and the related provision for credit losses is based on management’s judgment and evaluation of the loan portfolio. Management believes the current allowance for credit losses is adequate, however, changing economic and other conditions may require future adjustments to the allowance for credit losses.

Total nonperforming loans (NPLs) was $6.4 million at March 31, 2026, an increase from $4.9 million at March 31, 2025. The NPL to net loan receivable ratio was 0.52% as of March 31, 2026. Past due loan balances of 30 days and more decreased from $14.5 million at March 31, 2025, to $11.5 million, or 0.94% of net loans outstanding, at March 31, 2026.

Total liabilities were $1.39 billion at March 31, 2026, with deposits totaling $1.36 billion and wholesale funding totaling $0. Deposits grew by $27.4 million, or 8.2 % annualized, during the first quarter of 2026, mainly attributed to growth from Maximize Money Market accounts and the Short-Term Relationship Certificates of Deposits. The Company primarily utilizes FHLB advances as the primary source of wholesale funding due to their accessibility and alignment with prevailing market rates.

Total stockholders’ equity was $133 million at March 31, 2026, an increase of $4.3 million when compared to the December 31, 2025 balance. Total stockholders’ equity increased during the first quarter of 2026 primarily from net income of $4.8 million, an increase in accumulated other comprehensive income of $690,000 and partially offset by dividends of $1.2 million.

Main Street Financial Services Corp. is a holding company headquartered in Wooster, Ohio. Its primary subsidiary, Main Street Bank Corp. was founded in 1899 and provides full-service banking, commercial lending, and mortgage services across its branch infrastructure. Today, Main Street Bank Corp. operates twenty branch locations in Wooster, Ohio, Wheeling, West Virginia and other surrounding communities in Ohio and West Virginia. Additional information about Main Street Bank Corp. is available at www.mymainstreetbank.bank.

Non-GAAP Disclosure

This press release includes disclosures of the Company’s return on average equity, return on average assets, net income, and efficiency ratios which exclude amounts the Company views as unrelated to its normalized operations, including securities gains/losses, acquisition costs, restructuring costs, legal settlements, and system conversion costs. The financial measures are not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flow that excludes or includes amounts that are required to be disclosed by GAAP. The Company believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and the Company’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP.

Forward-Looking-Statements
This release contains forward-looking statements that are not historical facts and that are intended to be “forward-looking statements” as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts and pertain to the Company’s future operating results. When used in this release, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions are generally intended to identify forward-looking statements. Actual results may differ materially from the results discussed in these forward-looking statements, because such statements are inherently subject to significant assumptions, risks, and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These include but are not limited to: the possibility of adverse economic developments that may, among other things, increase default and delinquency risks in the Company’s loan portfolios; shifts in interest rates; shifts in the rate of inflation; shifts in the demand for the Company’s loan and other products; unforeseen increases in costs and expenses; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment.  Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information:

Matthew Hartzler
Executive Vice President, Chief Financial Officer
(330) 264-5767