Main Street Financial Services Corp. Announces Earnings for Fourth Quarter of 2024
Rhea-AI Summary
Main Street Financial Services Corp. (OTCQX: MSWV) reported Q4 2024 financial results following its merger with Wayne Savings Bancshares completed on May 31, 2024. The company achieved net income of $3.2 million, or $0.41 per common share, with return on equity of 11.69% and return on assets of 0.90%.
Key highlights include 19.7% annualized deposit growth in Q4 2024, and a $40 million reduction in wholesale funding. Net interest income increased 103.4% to $10.6 million, with net interest margin improving to 3.19%. The company declared a cash dividend of $0.14 per share on January 10, 2025.
Total assets reached $1.41 billion with net loan balances of $1.11 billion. The allowance for credit losses stood at $11.8 million (1.05% of total loans). Deposits grew to $1.16 billion, while total stockholders' equity increased to $110.6 million.
Positive
- Net income of $3.2 million ($0.41 per share) in Q4 2024
- Strong deposit growth of 19.7% annualized in Q4 2024
- Net interest income increased 103.4% to $10.6 million
- Net interest margin improved to 3.19% from 2.73% YoY
- Reduced reliance on wholesale funding by $40 million
Negative
- Return on equity declined to 11.69% from 16.90% YoY
- Return on assets decreased to 0.90% from 1.02% YoY
- Nonperforming loans increased to $6.1 million from $0.6 million YoY
- Past due loans increased to $13.8 million from $2.8 million YoY
News Market Reaction – MSWV
In the trading session that priced this news, MSWV declined 0.35%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Business Highlights
- Financial results reflect the second full quarter following the completed merger of Main Street Financial Services Corp. (Main Street) and Wayne Savings Bancshares, Inc. (Wayne) on May 31, 2024.
- Net income for the fourth quarter of 2024 totaled
$3.2 million , or$0.41 per common share - Annualized deposit growth of
19.7% for the quarter ended December 31, 2024 - Reduced reliance on wholesale funding by
$40 million during the fourth quarter of 2024 - Declared cash dividend of
$0.14 per share on January 10, 2025
WOOSTER, Ohio, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Main Street Financial Services Corp. (OTCQX: MSWV), (the “Company”), the holding company parent of Main Street Bank Corp. reported a net income of
The Company announced a merger of equals transaction with Wayne Savings Bancshares, Inc. (“Legacy Wayne”) on February 23, 2023. On May 31, 2024 (the “Merger Date”), the Company completed the transaction, forming a financial holding company with assets of
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, September 30, 2024 and December 31, 2024, 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 for the quarter ended December 31, 2024, 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.
President and CEO James R. VanSickle commented, “I am proud of the dedication and hard work displayed by Main Street Bank’s team of community bankers throughout 2024. They have been instrumental in the improvement of our operational efficiencies, enhancement of our customer experience and delivering long-term value for our shareholders. I would like to thank our customers, shareholders and our communities for their confidence in Main Street Bank.”
Fourth Quarter 2024 Financial Results
Net interest income was
A provision for credit losses and unfunded commitments of
Noninterest income totaled
Noninterest expense totaled
The provision for income taxes for the quarter ended December 31, 2024, decreased by
December 31, 2024 Financial Condition
At December 31, 2024, the Company had total assets of
The allowance for credit losses was
Total nonperforming loans (NPLs) was
Improvement in Asset Quality Since Merger Announcement: The combined level of classified loans and loans past due 30 or more days for Legacy Wayne and Main Street was
Total liabilities increased to
Total stockholders’ equity was
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 19 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 are excluding costs related to merger activities which are financial measures 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
Senior Vice President, Chief Financial Officer
(330) 264-5767
| MAIN STREET FINANCIAL SERVICES CORP. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Dollars in thousands, except share data – unaudited) | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 54,422 | $ | 20,884 | ||||
| Securities, net (1) | 163,819 | 86,405 | ||||||
| Loans receivable, net | 1,113,900 | 669,603 | ||||||
| Federal Home Loan Bank stock | 6,445 | 3,959 | ||||||
| Premises & equipment, net | 10,880 | 4,904 | ||||||
| Bank-owned life insurance | 22,155 | 11,706 | ||||||
| Other assets | 37,608 | 12,486 | ||||||
| TOTAL ASSETS | $ | 1,409,229 | $ | 809,947 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Deposit accounts | $ | 1,156,328 | $ | 693,126 | ||||
| Other short-term borrowings | 28,308 | 8,743 | ||||||
| Federal Home Loan Bank advances | 100,000 | 47,000 | ||||||
| Accrued interest payable and other liabilities | 13,957 | 8,111 | ||||||
| TOTAL LIABILITIES | 1,298,593 | 756,980 | ||||||
| Common stock (7,801,011 shares of | 7,801 | 398 | ||||||
| Additional paid-in capital | 56,387 | 36,715 | ||||||
| Retained earnings | 57,356 | 55,342 | ||||||
| Treasury Stock, at cost – 0 shares and 1,777,824 shares at December 31, 2024 and December 31, 2023, respectively. | – | (30,330 | ) | |||||
| Accumulated other comprehensive loss | (10,908 | ) | (9,158 | ) | ||||
| TOTAL STOCKHOLDERS' EQUITY | 110,636 | 52,967 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,409,229 | $ | 809,947 | ||||
| (1) Includes available-for-sale and held-to-maturity classifications. | ||||||||
| Note: The December 31, 2023 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 | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Interest income | $ | 19,138 | $ | 9,545 | $ | 60,334 | $ | 35,095 | ||||||||
| Interest expense | 8,531 | 4,330 | 27,665 | 12,920 | ||||||||||||
| Net interest income | 10,607 | 5,215 | 32,669 | 22,175 | ||||||||||||
| Provision for credit losses | 79 | 4 | 4,782 | 530 | ||||||||||||
| Net interest income after provision for credit losses | 10,528 | 5,211 | 27,887 | 21,645 | ||||||||||||
| Non-interest income | 1,165 | 1,017 | 4,158 | 3,017 | ||||||||||||
| Non-interest expense | ||||||||||||||||
| Salaries and employee benefits | 3,823 | 1,782 | 12,511 | 7,731 | ||||||||||||
| Net occupancy and equipment expense | 1,430 | 625 | 4,399 | 2,431 | ||||||||||||
| Federal deposit insurance premiums | 197 | 157 | 637 | 531 | ||||||||||||
| Franchise taxes | 107 | 81 | 464 | 380 | ||||||||||||
| Advertising and marketing | 237 | 44 | 645 | 223 | ||||||||||||
| Legal | 143 | 15 | 651 | 45 | ||||||||||||
| Professional fees | 260 | 74 | 1,924 | 239 | ||||||||||||
| ATM network | 84 | 123 | 557 | 443 | ||||||||||||
| Auditing and accounting | 130 | 60 | 516 | 240 | ||||||||||||
| Other | 1,539 | 787 | 4,165 | 2,561 | ||||||||||||
| Total non-interest expense | 7,950 | 3,748 | 26,469 | 14,824 | ||||||||||||
| Income before federal income taxes | 3,743 | 2,480 | 5,576 | 9,838 | ||||||||||||
| Provision for federal income taxes | 558 | 443 | 873 | 2,005 | ||||||||||||
| Net income | $ | 3,185 | $ | 2,037 | $ | 4,703 | $ | 7,833 | ||||||||
| Earnings per share | ||||||||||||||||
| Basic | $ | 0.41 | $ | 0.46 | $ | 0.76 | $ | 3.56 | ||||||||
| Diluted | $ | 0.41 | $ | 0.46 | $ | 0.76 | $ | 3.54 | ||||||||
| MAIN STREET FINANCIAL SERVICES CORP. | ||||||||||||||||
| Selected Condensed Consolidated Financial Data | ||||||||||||||||
| (Dollars in thousands, except share data – unaudited) | ||||||||||||||||
| December | September | June | March | |||||||||||||
| 2024 | 2024 | 2024 | 2024 | |||||||||||||
| Interest and dividend income | $ | 19,138 | $ | 18,930 | $ | 12,572 | $ | 9,694 | ||||||||
| Interest expense | 8,531 | 8,308 | 6,185 | 4,641 | ||||||||||||
| Net interest income | 10,607 | 10,622 | 6,387 | 5,053 | ||||||||||||
| Provision for credit losses | 79 | 109 | 4,720 | (126 | ) | |||||||||||
| Net interest income after provision for credit losses | 10,528 | 10,513 | 1,666 | 5,179 | ||||||||||||
| Non-interest income | 1,165 | 1,600 | 716 | 678 | ||||||||||||
| Non-interest expense | 7,950 | 7,863 | 6,723 | 3,934 | ||||||||||||
| Income before federal income taxes | 3,743 | 4,251 | (4,341 | ) | 1,923 | |||||||||||
| Provision for federal income taxes | 558 | 804 | (873 | ) | 384 | |||||||||||
| Net income | $ | 3,185 | $ | 3,446 | $ | (3,468 | ) | $ | 1,539 | |||||||
| Earnings per share – basic | $ | 0.41 | $ | 0.44 | $ | (0.68 | ) | $ | 0.40 | |||||||
| Earnings per share – diluted | $ | 0.41 | $ | 0.44 | $ | (0.67 | ) | $ | 0.40 | |||||||
| Dividends per share | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | ||||||||
| Return on average assets | 0.90 | % | 1.00 | % | -1.38 | % | 0.76 | % | ||||||||
| Return on average equity | 11.69 | % | 12.58 | % | -17.16 | % | 11.63 | % | ||||||||
| Shares outstanding at quarter end | 7,801,011 | 7,801,011 | 7,787,055 | 3,840,575 | ||||||||||||
| Book value per share | $ | 14.18 | $ | 14.27 | $ | 13.60 | $ | 13.81 | ||||||||
| Tangible equity per share | $ | 12.13 | $ | 12.15 | $ | 11.49 | $ | 13.36 | ||||||||
| December | September | June | March | |||||||||||||
| 2023 | 2023 | 2023 | 2023 | |||||||||||||
| Interest and dividend income | $ | 9,545 | $ | 9,078 | $ | 8,571 | $ | 7,901 | ||||||||
| Interest expense | 4,330 | 3,673 | 2,867 | 2,050 | ||||||||||||
| Net interest income | 5,215 | 5,405 | 5,704 | 5,851 | ||||||||||||
| Provision for credit losses | 4 | 138 | 170 | 218 | ||||||||||||
| Net interest income after provision for credit losses | 5,211 | 5,267 | 5,534 | 5,633 | ||||||||||||
| Non-interest income | 1,017 | 691 | 706 | 603 | ||||||||||||
| Non-interest expense | 3,748 | 3,733 | 3,949 | 3,394 | ||||||||||||
| Income before federal income taxes | 2,480 | 2,225 | 2,291 | 2,842 | ||||||||||||
| Provision for federal income taxes | 443 | 452 | 547 | 563 | ||||||||||||
| Net income | $ | 2,037 | $ | 1,773 | $ | 1,744 | $ | 2,279 | ||||||||
| Earnings per share – basic | $ | 0.53 | $ | 0.46 | $ | 0.46 | $ | 0.60 | ||||||||
| Earnings per share – diluted | $ | 0.53 | $ | 0.46 | $ | 0.45 | $ | 0.59 | ||||||||
| Dividends per share | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | ||||||||
| Return on average assets | 1.02 | % | 0.91 | % | 0.92 | % | 1.23 | % | ||||||||
| Return on average equity | 16.90 | % | 14.41 | % | 14.36 | % | 19.58 | % | ||||||||
| Shares outstanding at quarter end | 3,839,702 | 3,837,609 | 3,837,085 | 3,831,939 | ||||||||||||
| Book value per share | $ | 13.80 | $ | 12.40 | $ | 12.64 | $ | 12.51 | ||||||||
| Tangible equity per share | $ | 13.35 | $ | 11.95 | $ | 12.20 | $ | 12.06 | ||||||||
| MAIN STREET FINANCIAL SERVICES CORP. | ||||||||||||||||
| Non-GAAP reconciliation | ||||||||||||||||
| (Dollars in thousands, except per share data – unaudited) | ||||||||||||||||
| For three months ended | For the twelve months ended | |||||||||||||||
| December, | December, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net Income as reported – GAAP | $ | 3,185 | $ | 2,037 | $ | 4,703 | $ | 7,833 | ||||||||
| Effect of merger related expenses (net of tax benefit) | 26 | 353 | 5,769 | 950 | ||||||||||||
| Net Income non-GAAP | $ | 3,211 | $ | 2,390 | $ | 10,472 | $ | 8,783 | ||||||||
| Earnings per share – GAAP | $ | 0.41 | $ | 0.93 | $ | 0.76 | $ | 3.56 | ||||||||
| Effect of merger related expenses | 0.00 | 0.16 | 0.94 | 0.43 | ||||||||||||
| Earnings per share non-GAAP | $ | 0.41 | $ | 1.09 | $ | 1.70 | $ | 3.99 | ||||||||
| Return on average assets – GAAP | 0.90 | % | 1.02 | % | 0.41 | % | 1.02 | % | ||||||||
| Effect of merger related expenses | 0.01 | % | 0.18 | % | 0.50 | % | 0.12 | % | ||||||||
| Return on average assets non-GAAP | 0.91 | % | 1.20 | % | 0.91 | % | 1.14 | % | ||||||||
| Return on average equity – GAAP | 11.69 | % | 16.90 | % | 5.58 | % | 16.27 | % | ||||||||
| Effect of merger related expenses | 0.09 | % | 2.93 | % | 6.84 | % | 1.97 | % | ||||||||
| Return on average equity non-GAAP | 11.78 | % | 19.83 | % | 12.42 | % | 18.24 | % | ||||||||
| Efficiency Ratio – GAAP | 67.54 | % | 60.14 | % | 71.87 | % | 58.42 | % | ||||||||
| Effect of merger related expenses | -0.22 | % | -5.66 | % | -6.73 | % | -3.77 | % | ||||||||
| Efficiency Ratio non-GAAP | 67.32 | % | 54.48 | % | 65.14 | % | 55.07 | % | ||||||||
