Main Street Financial Services Corp. Achieves New Record Profit Milestone for Third Quarter of 2025

Rhea-AI Summary

Main Street Financial Services Corp (OTCQX: MSWV) reported record third-quarter 2025 results for the period ended September 30, 2025, with net income of $4.5 million (+31.7% YoY) or $0.58 per share. Return on average assets improved to 1.25% and ROCTE rose to 16.63%. Net interest income was $12.7 million and net interest margin expanded to 3.73%. Deposits grew by $51.4 million (16.6% annualized) and loans increased by $29.5 million (10.2% annualized). Wholesale funding was reduced by $34 million to $20 million. Efficiency ratio improved to 56.91%. The company declared a $0.14 per-share cash dividend on October 10, 2025.

Positive

• Net income +31.7% to $4.5M in Q3 2025
• ROCTE improved 209 bps to 16.63%
• Deposit growth $51.4M (16.6% annualized) in Q3 2025
• Loan growth $29.5M (10.2% annualized) in Q3 2025
• Wholesale funding reduced by $34M to $20M
• Efficiency ratio improved to 56.91%

Negative

• Noninterest income down 18.5% YoY due to absence of prior-quarter <$702k> securities gain
• Cost of deposits increased 16 bps to 2.45% in Q3 2025

Business Highlights

• Net income increased for the third quarter by 32%, totaling $4.5 million, or $0.58 per common share, compared to $3.4 million, or $0.44 per common share, for the third quarter of 2024.
• Return on average assets (ROA) improved 25 basis points to 1.25%, compared to 1.00% in the third quarter of 2024.
• Return on average common tangible equity (ROCTE) increased 209 basis points to 16.63%, compared to 14.54% in the third quarter of 2024.
• Deposit growth of $51.4 million, or 16.6% annualized, for the quarter ended September 30, 2025
• Loan growth of $29.5 million, or 10.2% annualized, for the quarter ended September 30, 2025
• Continued reduction of wholesale funding by $34 million during the third quarter of 2025. The wholesale funding balance decreased to $20 million, or 1.4% of assets, as of September 30, 2025.
• Expanded market presence with the opening of a new full-service branch in St. Clairsville, Ohio, during August 2025
• Declared cash dividend of $0.14 per share on October 10, 2025
  
  

WOOSTER, Ohio, Oct. 23, 2025 (GLOBE NEWSWIRE) -- Main Street Financial Services Corp. (OTCQX: MSWV), (the “Company”), the holding company parent of Main Street Bank Corp. reported net income (unaudited) of $4.5 million, or $0.58 per common share, for the three months ended September 30, 2025, an increase of $1.1 million, or 31.7%, when compared to $3.4 million, $0.44 per common share, for the quarter ended September 30, 2024. On a non-GAAP basis, which excludes nonrecurring items and represents the Company’s earnings from ongoing operations, return on average assets increased to 1.16% from 0.89%, and return on average equity rose to 14.06% from 11.17%. The Company’s efficiency ratio improved to 56.91%, compared to 66.01% in the third quarter of 2024, as revenue growth outpaced expense levels.

“Our third quarter results reflect the collective strength of our people, customers, and the communities we serve,” said Mark Witmer, Chairman, President, and CEO of Main Street Financial Services Corp. “Growth in loans and deposits continues to be driven by the relationships our bankers have built. Even as we deliver strong financial results, our focus remains on supporting local families, small businesses, and community partners who are the foundation of our success. The year-over-year improvement in key performance metrics further underscores Main Street’s enhanced operating leverage, disciplined cost structure, and sustained profitability following the merger integration.”

Third Quarter 2025 Financial Results

Net interest income was $12.7 million for the quarter ended September 30, 2025, an increase of 19.8% from $10.6 million for the quarter ended September 30, 2024. The net interest margin of 3.73% for the third quarter of 2025 increased 45 basis points from 3.28% for the third quarter of 2024. Loan yields were 6.56% for the quarter ended September 30, 2025, an increase of 39 basis points when compared to 6.17% for the quarter ended September 30, 2024. During the third quarter of 2025, $134.9 million of the existing loan portfolio repriced and the bank funded $74.6 million in term loans and lines of credit at current market rates. Investment yields increased 18 basis points to 3.63% as of September 30, 2025, compared to the quarter ended September 30, 2024. The cost of funds for the third quarter of 2025 was 2.54%, a decrease of 10 basis points when compared to the third quarter of 2024. The cost of funds is impacted by the acquisition of new deposit accounts in the local market at rates lower than wholesale funding, such as FHLB advances. The cost of deposits was 2.45% for the quarter ended September 30, 2025, a 16-basis point increase when compared to 2.29% for the quarter ended September 30, 2024. The cost of borrowings for the quarter ended September 30, 2025, totaled 4.90%, a decrease of 47 basis points when compared to the quarter ended September 30, 2024.

A provision for credit losses and unfunded commitments of $481,000 was recorded for the quarter ended September 30, 2025. During the quarter, the Company recognized $200,000 in charge-offs and $5,000 in recoveries, reflecting relatively stable asset quality.

Noninterest income totaled $1.3 million for the quarter ended September 30, 2025, a decrease of $296,000, or 18.5%, when compared to the same period in 2024. The decline primarily reflects a $702,000 gain on sale of investment securities recognized in the prior year quarter when the Company elected to sell approximately $15 million of acquired securities. This was partially offset in the current quarter by $337,000 when the Company recognized death benefit proceeds generated on a bank-owned life insurance (BOLI) policy.

Noninterest expense totaled $7.8 million for the quarter ended September 30, 2025, a slight decrease of $69,000, or 0.9%, compared to $7.9 million for the same period in 2024. The decrease was driven by lower net occupancy and equipment expense and reduced professional fees, reflecting the prior-year impact of merger-related and integration costs. These reductions were partially offset by higher FDIC insurance premiums, franchise taxes and ATM network expenses as a result of increased transaction volume and regulatory assessment rates. Salaries and employee benefits increased modestly by $86,000 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 September 30, 2025, was $1.2 million, reflecting an effective tax rate of 21.2%.

September 30, 2025 Financial Condition

As of September 30, 2025, the Company had total assets of $1.47 billion with net loan balances totaling $1.19 billion. Loan balances grew by $29.5 million, or 10.2% annualized, during the third quarter of 2025. The increase is primarily attributed to $35.1 million growth in the commercial loan portfolio.

The allowance for credit losses was $12.7 million at September 30, 2025, compared to $11.8 million at December 31, 2024. The allowance for credit losses as a percent of total loans was 1.06% for September 30, 2025, and 1.05% for December 31, 2024. 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 $5.0 million at September 30, 2025, a decrease from $6.1 million at December 31, 2024. The NPL to net loan receivable ratio was 0.42% as of September 30, 2025. Past due loan balances of 30 days and more decreased from $13.8 million at December 31, 2024, to $7.5 million, or 0.63% of net loans outstanding, at September 30, 2025.

Improvement in Asset Quality Since Merger Announcement: The combined level of classified loans for Legacy Wayne Savings Bancshares, Inc. and Main Street Financial Services, Corp. was $24.4 million as of December 31, 2022. Since the merger announcement on February 23, 2023, the management teams of both Main Street and Wayne invested a great deal of time ensuring our combined organization utilizes strong underwriting standards and proactively monitors credit quality. Main Street sold approximately $15.2 million of loans in August 2023 and April 2024, of which approximately $12.7 million were classified loans. As of September 30, 2025, the resultant Company has $11.1 million of classified loans.

Total liabilities were $1.35 billion at September 30, 2025, with deposits totaling $1.29 billion and wholesale funding totaling $20.0 million. Deposits grew by $51.4 million, or 16.6% annualized, during the third quarter of 2025, 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. During the second quarter of 2025, the Company reduced the reliance on FHLB advances by $34 million.

Total stockholders’ equity was $123.6 million at September 30, 2025, an increase of $13.0 million when compared to the December 31, 2024 balance. Total stockholders’ equity increased during the second quarter of 2025 primarily from net income of $4.5 million, an increase in accumulated other comprehensive income of $3.5 million and partially offset by dividends of $1.1 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.

Merger and Impact on Financial Statements Disclosure
The Company announced a merger of equals transaction with Wayne Savings Bancshares, Inc. (“Legacy Wayne”), and on May 31, 2024 (the “Merger Date”), the Company completed the transaction. On the Merger Date, Legacy Wayne merged with and into Main Street, with Main Street surviving the merger (the “Merger”). Immediately following the Merger, Main Street’s wholly owned bank subsidiary, Main Street Bank Corp., merged with and into Wayne Savings Community Bank, with Wayne Savings Community Bank surviving the merger. Upon completion of the Merger, Wayne Savings Community Bank was renamed Main Street Bank Corp.

The Merger was accounted for as a reverse merger using the acquisition method of accounting, therefore, Legacy Wayne was deemed the acquirer for financial reporting purposes, even though Main Street was the legal acquirer. Accordingly, Legacy Wayne’s historical financial statements are the historical financial statements of the combined company for all periods before the Merger Date. Our consolidated statements of income for the quarters ended June 30, 2024 and forward, include the results from Main Street on and after May 31, 2024. Results for periods before May 31, 2024, reflect only those of Legacy Wayne and do not include the consolidated statements of income of Main Street. Accordingly, comparisons of our results with those of prior periods may not be meaningful. The number of shares issued and outstanding, earnings per share, dividends paid and all references to share quantities of Main Street have been retrospectively adjusted to reflect the equivalent number of shares issued in the Merger.

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

MAIN STREET FINANCIAL SERVICES CORP.
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share data - unaudited)
	September 30, 2025				December 31, 2024
ASSETS
Cash and cash equivalents	$	51,273			$	54,422
Securities, net (1)		156,607				163,819
Loans held for sale		110				-
Loans receivable, net		1,190,980				1,113,900
Federal Home Loan Bank stock		2,627				5,924
Premises & equipment, net		7,859				8,013
Bank-owned life insurance		22,182				22,155
Other assets		39,328				41,368
TOTAL ASSETS	$	1,470,966			$	1,409,601
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposit accounts	$	1,289,022			$	1,156,327
Other borrowings		26,669				28,399
Federal Home Loan Bank advances		20,000				100,000
Accrued interest payable and other liabilities		11,652				14,239
TOTAL LIABILITIES		1,347,343				1,298,965
Common stock ($1.00 par value, 7,829,137 and 7,801,011 shares issued at Sept 30, 2025 and December 31, 2024, respectively)		7,829				7,801
Additional paid-in capital		56,727				56,387
Retained earnings		65,922				57,356
Accumulated other comprehensive loss		(6,855	)			(10,908	)
TOTAL STOCKHOLDERS' EQUITY		123,623				110,636
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,470,966			$	1,409,601
(1) Includes available-for-sale and held-to-maturity classifications.
Note: The December 31, 2024 Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of that date.

MAIN STREET FINANCIAL SERVICES CORP.
Condensed Consolidated Statements of Income
(Dollars in thousands, except share data - unaudited)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
		2025				2024				2025				2024
Interest income	$	21,122			$	18,930			$	61,218			$	41,196
Interest expense		8,394				8,308				24,508				19,134
Net interest income		12,728				10,622				36,710				22,062
Provision for credit losses		480				109				1,099				4,703
Net interest income after provision for credit losses		12,248				10,513				35,611				17,359
Non-interest income		1,304				1,600				3,029				2,994
Non-interest expense
Salaries and employee benefits		3,885				3,799				11,962				8,688
Net occupancy and equipment expense		1,351				1,465				4,231				2,970
Federal deposit insurance premiums		211				118				589				440
Franchise taxes		126				51				336				358
Advertising and marketing		225				190				585				408
Legal		52				195				299				508
Professional fees		238				371				962				1,664
ATM network		246				79				458				474
Auditing and accounting		177				193				485				386
Other		1,283				1,403				3,709				2,625
Total non-interest expense		7,794				7,863				23,616				18,520
Income before federal income taxes		5,758				4,251				15,024				1,833
Provision for federal income taxes		1,219				804				3,177				315
Net income	$	4,539			$	3,446			$	11,847			$	1,517
Earnings per share
Basic	$	0.58			$	0.44			$	1.52			$	0.27
Diluted	$	0.58			$	0.44			$	1.51			$	0.27

MAIN STREET FINANCIAL SERVICES CORP.
Selected Condensed Consolidated Financial Data
(Dollars in thousands, except share data - unaudited)
	September				June				March				December
	2025				2025				2025				2024
Interest and dividend income	$	21,122			$	20,699			$	19,397			$	19,138
Interest expense		8,394				8,241				7,872				8,531
Net interest income		12,728				12,457				11,525				10,607
Provision for credit losses		480				374				245				79
Net interest income after provision for credit losses		12,248				12,083				11,280				10,528
Non-interest income		1,304				906				819				1,165
Non-interest expense		7,794				8,308				7,514				7,950
Income before federal income taxes		5,758				4,681				4,585				3,744
Provision for federal income taxes		1,219				1,002				956				558
Net income	$	4,539			$	3,679			$	3,629			$	3,186
Earnings per share - basic	$	0.58			$	0.47			$	0.47			$	0.41
Earnings per share - diluted	$	0.58			$	0.47			$	0.47			$	0.41
Dividends per share	$	0.14			$	0.14			$	0.14			$	0.14
Return on average assets		1.25	%			1.03	%			1.03	%			0.90	%
Return on average equity		15.19	%			13.42	%			13.27	%			11.69	%
Shares outstanding at quarter end		7,829,137				7,829,137				7,801,011				7,801,011
Book value per share	$	15.79			$	14.89			$	14.73			$	14.18
Tangible equity per share	$	13.94			$	12.97			$	12.73			$	12.13
Return on common tangible equity		16.63	%			14.49	%			14.62	%			13.46	%
	September				June				March				December
	2024				2024				2024				2023
Interest and dividend income	$	18,930			$	12,572			$	9,694			$	9,545
Interest expense		8,308				6,185				4,641				4,330
Net interest income		10,622				6,387				5,053				5,215
Provision (benefit) for credit losses		109				4,720				(126	)			4
Net interest income after provision for credit losses		10,513				1,666				5,179				5,211
Non-interest income		1,600				716				678				1,017
Non-interest expense		7,863				6,723				3,934				3,748
Income (loss) before federal income taxes		4,251				(4,341	)			1,923				2,480
Provision (benefit) for federal income taxes		804				(873	)			384				443
Net income (loss)	$	3,446			$	(3,468	)		$	1,539			$	2,037
Earnings (loss) per share - basic	$	0.44			$	(0.68	)		$	0.40			$	0.53
Earnings (loss) per share - diluted	$	0.44			$	(0.67	)		$	0.40			$	0.53
Dividends per share	$	0.14			$	0.13			$	0.13			$	0.13
Return on average assets		1.00	%			(1.38	%)			0.76	%			1.02	%
Return on average equity		12.58	%			(17.16	%)			11.63	%			16.90	%
Shares outstanding at quarter end		7,801,011				7,787,055				3,840,575				3,839,702
Book value per share	$	14.27			$	13.60			$	13.81			$	13.80
Tangible equity per share	$	12.15			$	11.49			$	13.36			$	13.35
Return on common tangible equity		14.54	%			(15.51	%)			12.00	%			15.90	%

MAIN STREET FINANCIAL SERVICES CORP.
Non-GAAP reconciliation
(Dollars in thousands, except per share data - unaudited)
	For three months ended								For the nine months ended
	September,								September,
	2025				2024				2025				2024
Net Income as reported - GAAP	$	4,539			$	3,446			$	11,847			$	1,518
Effect of BOLI death benefit recognition (tax-free)		(337	)			-				(337	)			-
Effect of gain on the sale of investments (net of tax benefit)		-				(555	)			-				(555	)
Effect of merger related expenses (net of tax benefit)		-				170				-				5,743
Effect of termination expenses (net of tax benefit)		-				-				416				-
Net Income non-GAAP	$	4,202			$	3,061			$	11,926			$	6,706
Earnings per share - GAAP	$	0.58			$	0.44			$	1.52			$	0.27
Effect of BOLI death benefit recognition (tax-free)		(0.04	)			-				(0.04	)			-
Effect of gain on the sale of investments (net of tax benefit)		-				(0.07	)			-				(0.10	)
Effect of merger related expenses (net of tax benefit)		-				0.02				-				1.03
Effect of termination expenses (net of tax benefit)		-				-				0.05				-
Earnings per share non-GAAP	$	0.54			$	0.39			$	1.53			$	1.20
Return on average assets - GAAP		1.25	%			1.00	%			1.10	%			0.19	%
Effect of BOLI death benefit recognition (tax-free)		(0.09	%)			-				(0.03	%)			-
Effect of gain on the sale of investments (net of tax benefit)		-				(0.16	%)			-				(0.07	%)
Effect of merger related expenses (net of tax benefit)		-				0.05	%			-				0.72	%
Effect of termination expenses (net of tax benefit)		-				-				0.04	%			-
Return on average assets non-GAAP		1.16	%			0.89	%			1.11	%			0.84	%
Return on average equity - GAAP		15.19	%			12.58	%			10.59	%			2.66	%
Effect of BOLI death benefit recognition (tax-free)		(1.13	%)			-				(0.30	%)			-
Effect of gain on the sale of investments (net of tax benefit)		-				(2.03	%)			-				(0.97	%)
Effect of merger related expenses (net of tax benefit)		-				0.62	%			-				10.06	%
Effect of termination expenses (net of tax benefit)		-				-				0.37	%			-
Return on average equity non-GAAP		14.06	%			11.17	%			10.66	%			11.75	%
Efficiency Ratio - GAAP		55.54	%			64.34	%			59.43	%			73.92	%
Effect of BOLI death benefit recognition (tax-free)		1.37	%			-				0.51	%			-
Effect of gain on the sale of investments (net of tax benefit)		-				3.06	%			-				1.67	%
Effect of merger related expenses (net of tax benefit)		-				(1.39	%)			-				(9.90	%)
Effect of termination expenses (net of tax benefit)		-				-				(1.05	%)			-
Efficiency Ratio non-GAAP		56.91	%			66.01	%			58.89	%			65.69	%

FAQ

What were Main Street Financial (MSWV) Q3 2025 earnings per share and net income?

Net income was $4.5 million and EPS was $0.58 for Q3 2025.

How much did MSWV deposits and loans grow in Q3 2025?

Deposits grew by $51.4M (16.6% annualized) and loans grew by $29.5M (10.2% annualized) in Q3 2025.

What change did MSWV report to its wholesale funding position as of September 30, 2025?

The company reduced wholesale funding by $34M, leaving a balance of $20M as of September 30, 2025.

How did Main Street Financial's net interest margin and net interest income perform in Q3 2025?

Net interest income was $12.7M and net interest margin expanded to 3.73% in Q3 2025.

Did MSWV change its dividend after Q3 2025 results?

The company declared a cash dividend of $0.14 per share on October 10, 2025.

Why did MSWV's noninterest income decline year-over-year in Q3 2025?

Noninterest income fell 18.5% primarily because a $702k gain on sale of securities recognized in prior-year quarter did not recur.