Main Street Financial Services Corp. Announces Record Q3 2026 Earnings, Highlighted by 43% Net Income Growth

2026 Third-Quarter Financial Highlights

• Net income increased for the third quarter by 43.1%, totaling $6.5 million, or $0.83 per common share, compared to $4.5 million, or $0.58 per common share, for the third quarter of 2025.
• Return on average common tangible equity (ROCTE) increased 390 basis points to 20.53%, compared to 16.63% in the third quarter of 2025.
• Return on average assets (ROA) increased 37 basis points to 1.62%, compared to 1.25% in the third quarter of 2025.
• Deposits increased $58.6 million, or 16.9% annualized, during the third quarter of 2026 and $110.6 million, or 11.1% annualized, for the nine months ended September 30, 2026.
• Loans increased $23.9 million, or 7.4% annualized, during the third quarter of 2026 and $88.1 million, or 9.6% annualized, for the nine months ended September 30, 2026.
• Efficiency ratio of 47.72% compared to 55.54% for the quarter ended September 30, 2025
• Declared a cash dividend of $0.15 per share on August 7, 2026, following strong quarterly operating results.

Wooster, Ohio, October 27, 2026 – Main Street Financial Services Corp. (OTCQX: MSWV), (the “Company”), the holding company parent of Main Street Bank Corp. reported net income (unaudited) of $6.5 million, or $0.83 per common share, for the three months ended September 30, 2026, an increase of $2.0 million, or 43.1%, when compared to $4.5 million, $0.58 per common share, for the quarter ended September 30, 2025. Return on average assets increased to 1.62% from 1.25% and return on average equity rose to 18.62% from 15.19%. The Company’s efficiency ratio improved to 47.72%, compared to 55.54% in the third quarter of 2025, as revenue growth outpaced expense levels.

"Our record financial performance this quarter continues a strong trend of results and reflects the strength of the relationships we have built within the communities we serve,” said Mark Witmer, President and Chief Executive Officer. “Our success is rooted in understanding the unique needs of our customers, fostering meaningful relationships, and remaining deeply connected to each community in which we operate. The trust we have earned within our communities remains a powerful driver of our success and gives us confidence in the opportunities ahead.”

Third Quarter 2026 Financial Results

Net interest income was $14.8 million for the quarter ended September 30, 2026, an increase of 16.4% from $12.7 million for the quarter ended September 30, 2025. The net interest margin of 3.88% for the third quarter of 2026 increased 17 basis points from 3.71% for the third quarter of 2025. Loan yields for the quarter ended September 30, 2026, were 6.75%, an increase of 25 basis points compared to the quarter ended September 30, 2025. Excluding purchase accounting accretion, the core loan portfolio generated a yield of approximately 6.62%, reflecting disciplined pricing and favorable portfolio mix. Purchase accounting accretion on acquired loans contributed 13 basis points to overall loan yield during the third quarter of 2026, compared to approximately 15 basis points during the third quarter of 2025. During the third quarter of 2026, $219.0 million of the existing loan portfolio repriced and the bank funded $51.5 million in term loans and extended $13.2 million of lines of credit commitments at current market rates.

Investment yields increased 25 basis points to 3.77% as of Sept 30, 2026, compared to the quarter ended September 30, 2025. The increase was driven by the purchase of higher-yielding securities during the year ended 2025, which impacted overall investment income. The cost of funds for the third quarter of 2026 was 2.52%, remaining consistent when compared to the third quarter of 2025. Funding costs reflect increased local deposit growth and reduced reliance on wholesale funding, including FHLB advances. The cost of deposits was 2.49% for the quarter ended September 30, 2026, a 6-basis point increase when compared to 2.43% for the quarter ended September 30, 2025. The cost of borrowings, which includes other borrowings as well as FHLB advances for the quarter ended September 30, 2026, totaled 5.65%, an increase of 137 basis points when compared to the quarter ended September 30, 2025. The increase is due to other borrowings as there were no Federal Home Loan Bank advances in the quarter ended Sept 30, 2026.

Noninterest income totaled $1.2 million for the quarter ended September 30, 2026, a decrease of $72,000, or 5.5%, when compared to the same period in 2025. The decrease was a result of recognizing $337,000 in death benefit proceeds generated from a bank-owned life insurance (BOLI) policy in the quarter ended September 30, 2025.

Noninterest expense totaled $7.7 million for the quarter ended September 30, 2026, a decrease of $138,000, 1.8%, compared to $7.8 million for the same period in 2025. The decrease was driven by a decrease in ATM network, audit and accounting, amortization of intangible assets, and advertising and marketing expenses. These decreases were partially offset by higher net occupancy and equipment, and franchise taxes expenses. 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 September 30, 2026, was $1.7 million, reflecting an effective tax rate of 20.8%.

September 30, 2026, Financial Condition

As of September 30, 2026, the Company had total assets of $1.61 billion with net loan balances totaling $1.30 billion. Loan balances grew by $23.9 million, or 7.4% annualized, during the third quarter of 2026.

The allowance for credit losses increased $117,000, or 3.4% annualized, during the third quarter to $13.9 million at September 30, 2026. The allowance for credit losses as a percentage of total loans was 1.06% for September 30, 2026. 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 liabilities were $1.47 billion at September 30, 2026, with deposits totaling $1.44 billion and wholesale funding totaling $0. Deposits grew by $58.6 million, or 16.9% annualized, during the third 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 $137.4 million at September 30, 2026, a decrease of $505,000 in the third quarter and a $8.7 million increase when compared to December 31, 2025. Total stockholders’ equity decreased during the second quarter of 2026 primarily from a decrease in accumulated other comprehensive income of $6.1 million and offset by an increase of net income of $6.5 million and dividends of $1.2 million.

Credit Quality

A provision for credit losses and unfunded commitments of $188,000 was recorded for the quarter ended September 30, 2026. The provision increase primarily reflects growth in the loan portfolio during the quarter. Net charge-offs for the quarter ending September 30, 2026 were $51,000, compared to $195,000 as of September 30, 2025.

Total nonperforming loans (NPLs) were $9.1 million at September 30, 2026, an increase of $599,000 for the quarter. The NPL to average loan receivable ratio was 0.71% as of September 30, 2026. Past due loan balances of 30 days or more decreased from $9.6 million at June 30, 2026, to $8.4 million, or 0.65% of net loans outstanding, as of September 30, 2026.

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-one 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