Main Street Financial Services Corp. Announces Record Q2 2026 Earnings, Highlighted by 66% Net Income Growth

Q: What were Main Street Financial Services (MSWV) key profitability ratios in Q2 2026?

In Q2 2026, Main Street Financial Services reported a 1.58% ROA and 18.05% ROE . According to the company, return on average tangible common equity reached 20.04%, supported by higher earnings and efficiency improvements, while the efficiency ratio improved to 49.07% from 62.17% a year earlier.

Q: How did loans and deposits change for Main Street Financial Services (MSWV) in Q2 2026?

Main Street Financial Services grew loans by $10.9 million and deposits by $24.5 million in Q2 2026. According to the company, loan growth was primarily organic, while deposit growth was driven by Maximize Money Market accounts and Short-Term Relationship Certificates of Deposit products.

Q: What is the dividend announced by Main Street Financial Services (MSWV) after Q2 2026 results?

Main Street Financial Services declared a $0.15 per share cash dividend on July 10, 2026. According to the company, this follows strong quarterly operating results and compares with prior quarterly dividends of $0.14 per share during much of 2025, continuing a consistent dividend program.

Q: How did Main Street Financial Services (MSWV) net interest margin and funding costs trend in Q2 2026?

Net interest margin rose to 3.85% in Q2 2026, up 17 basis points year over year. According to the company, cost of funds was 2.47%, with deposit costs at 2.43% and borrowing costs at 5.20%, reflecting mix shifts and reduced reliance on Federal Home Loan Bank advances.

Q: What was Main Street Financial Services (MSWV) book value and stock price at Q2 2026 period-end?

At June 30, 2026, book value per share was $17.58 , and the stock price was $20.27 . According to the company, tangible book value per share reached $15.91, while total stockholders’ equity increased to $137.9 million, reflecting retained earnings and improved accumulated other comprehensive income.

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Rhea-AI Summary

Main Street Financial Services (OTCQX: MSWV) reported record Q2 2026 net income of $6.1 million, up 65.7% from $3.7 million a year earlier, with diluted EPS rising to $0.77 from $0.47. Return on average assets improved to 1.58% and return on average equity to 18.05%.

Net interest income grew 13.3% to $14.1 million as net interest margin expanded to 3.85%. Noninterest income increased 38.5% to $1.3 million, while noninterest expense fell 9.2% to $7.5 million, driving an efficiency ratio improvement to 49.07% from 62.17%.

Total assets reached $1.55 billion, with net loans at $1.27 billion and deposits at $1.38 billion after $24.5 million quarterly deposit growth. Nonperforming loans rose to $8.5 million (0.67% of loans). The company declared a $0.15 per-share cash dividend on July 10, 2026.

Positive

Net income +65.7% YoY to $6.1 million in Q2 2026
Diluted EPS increased to $0.77 from $0.47 year over year
Net interest income up 13.3% YoY to $14.1 million
Efficiency ratio improved to 49.07% from 62.17% in Q2 2025
Deposits grew $24.5 million in Q2 to $1.38 billion
Book value per share rose to $17.58 from $14.89 year over year

Negative

Nonperforming loans increased $2.1 million in the quarter to $8.5 million
Cost of deposits rose 6 bps YoY to 2.43% in Q2 2026
Net charge-offs increased to $59,000 from $35,000 year over year
Cost of borrowings climbed 77 bps YoY to 5.20%

News Market Reaction – MSWV

+1.10%

+1.10% Session close to close

In the Jul 24 session, MSWV gained 1.10%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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07/23/2026 - 04:05 PM

2026 Second-Quarter Financial Highlights

Net income increased for the second quarter by 65.7%, totaling $6.1 million, or $0.78 per common share, compared to $3.7 million, or $0.47 per common share, for the second quarter of 2025.
Return on average tangible common equity (ROATCE) increased 38.3% to 20.04%, compared to 14.49% in the second quarter of 2025.
Return on average assets (ROA) improved 55 basis points to 1.58%, compared to 1.03% in the second quarter of 2025.
Deposits increased $24.5 million, or 7.2% annualized, during the second quarter of 2026 and $51.9 million, or 7.9% annualized, for the six months ended June 30, 2026.
Loans increased $10.9 million, or 3.5% annualized, during the second quarter of 2026 and $63.6 million, or 10.6% annualized, for the six months ended June 30, 2026.
Efficiency ratio of 49.07% compared to 62.17% for the quarter ended June 30, 2025
Declared a cash dividend of $0.15 per share on July 10, 2026, following strong quarterly operating results.

WOOSTER, Ohio, July 23, 2026 (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 $6.1 million, or $0.78 per common share, for the three months ended June 30, 2026, an increase of $2.4 million, or 65.7%, when compared to $3.7 million, $0.47 per common share, for the quarter ended June 30, 2025. Return on average assets increased to 1.58% from 1.03% and return on average equity rose to 18.05% from 13.42%. The Company’s efficiency ratio improved to 49.07%, compared to 62.17% in the second quarter of 2025, as revenue growth outpaced expense levels.

"Another record quarter is a testament to what a strong community bank can accomplish when talented employees, loyal customers, and disciplined execution come together," said Mark R. Witmer, Chairman, President, and CEO of Main Street Financial Services Corp. "We continue to invest in our people, deepen customer relationships, and responsibly grow our balance sheet, positioning the company for continued success well beyond this quarter."

Second Quarter 2026 Financial Results

Net interest income was $14.1 million for the quarter ended June 30, 2026, an increase of 13.3% from $12.5 million for the quarter ended June 30, 2025. The net interest margin of 3.85% for the second quarter of 2026 increased 17 basis points from 3.68% for the second quarter of 2025. Loan yields for the quarter ended June 30, 2026, were 6.59%, an increase of 11 basis points compared to the quarter ended June 30, 2025. Excluding purchase accounting accretion, the core loan portfolio generated a yield of approximately 6.53%, reflecting disciplined pricing and favorable portfolio mix. Purchase accounting accretion on acquired loans contributed 6 basis points to overall loan yield during the second quarter of 2026, compared to approximately 23 basis points during the second quarter of 2025. During the second quarter of 2026, $95.2 million of the existing loan portfolio repriced and the bank funded $37.6 million in term loans and extended $13.5 million of lines of credit commitments at current market rates.

Investment yields decreased 13 basis points to 3.89% as of June 30, 2026, compared to the quarter ended June 30, 2025. The decrease was driven by the maturity of higher-yielding securities during the second half of 2025, which impacted overall investment income. The cost of funds for the second quarter of 2026 was 2.47%, a decrease of 6 basis points when compared to the second quarter of 2025. Funding costs reflect increased local deposit growth and reduced reliance on wholesale funding, including FHLB advances. The cost of deposits was 2.43% for the quarter ended June 30, 2026, a 6-basis point increase when compared to 2.37% for the quarter ended June 30, 2025. The cost of borrowings for the quarter ended June 30, 2026, totaled 5.20%, an increase of 77 basis points when compared to the quarter ended June 30, 2025. The increase is due to other borrowings as there were no Federal Home Loan Bank advances in the quarter ended June 30, 2026.

Noninterest income totaled $1.3 million for the quarter ended June 30, 2026, an increase of $349,000, or 38.5%, when compared to the same period in 2025. The increase resulted from management's fee structure review aimed at improving revenue performance.

Noninterest expense totaled $7.5 million for the quarter ended June 30, 2026, a decrease of $767,000, 9.2%, compared to $8.3 million for the same period in 2025. The decrease was driven by a decrease in salaries and employee benefits, legal, and other expenses. These decreases were partially offset by higher franchise taxes and net occupancy and equipment 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 June 30, 2026, was $1.6 million, reflecting an effective tax rate of 20.6%.

June 30, 2026, Financial Condition

As of June 30, 2026, the Company had total assets of $1.55 billion with net loan balances totaling $1.27 billion. Loan balances grew by $10.9 million, or 3.5% annualized, during the second quarter of 2026. The increase is primarily attributed to organic growth across the loan portfolios.

The allowance for credit losses increased $91,000, or 2.7% annualized, during the second quarter to $13.8 million at June 30, 2026. The allowance for credit losses as a percentage of total loans was 1.07% for June 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 $1.42 billion at June 30, 2026, with deposits totaling $1.38 billion and wholesale funding totaling $0. Deposits grew by $24.5 million, or 7.2% annualized, during the second 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 $138 million at June 30, 2026, an increase of $4.9 million in the second quarter and a $9.2 million increase when compared to December 31, 2025. Total stockholders’ equity increased during the second quarter of 2026 primarily from net income of $6.1 million, an increase in accumulated other comprehensive income of $552,000 and partially offset by dividends of $1.2 million.

Credit Quality

A provision for credit losses and unfunded commitments of $154,000 was recorded for the quarter ended June 30, 2026. The provision increase primarily reflects growth in the loan portfolio during the quarter. Net charge-offs for the quarter ending June 30, 2026 were $59,000, compared to $35,000 as of June 30, 2025.

Total nonperforming loans (NPLs) were $8.5 million at June 30, 2026, an increase of $2.1 million for the quarter. The NPL to average loan receivable ratio was 0.67% as of June 30, 2026. Past due loan balances of 30 days and more decreased from $11.5 million at March 31, 2026, to $9.6 million, or 0.76% of net loans outstanding, at June 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 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


MAIN STREET FINANCIAL SERVICES CORP.
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share data - unaudited)

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2026			2026			2025			2025			2025
ASSETS

Cash and cash equivalents	$	58,895		$	45,496		$	61,624		$	51,273		$	52,381
Securities, net ⁽¹⁾		153,606			151,287			155,696			156,607			158,189
Loans held for sale		1,008			610			-			110			168
Loans		1,286,904			1,275,901			1,222,662			1,203,690			1,173,848
Less allowance for credit losses		13,762			13,671			13,130			12,710			12,398
Net loans		1,273,142			1,262,230			1,209,532			1,190,980			1,161,450
Federal Home Loan Bank stock		1,355			1,426			1,368			2,627			4,567
Premises & equipment, net		7,532			7,648			7,779			7,859			7,884
Bank-owned life insurance		22,312			22,164			22,327			22,182			22,036
Other assets		35,460			35,804			37,201			39,328			42,096
TOTAL ASSETS	$	1,553,310		$	1,526,665		$	1,495,527		$	1,470,966		$	1,448,771

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Demand		319,214			328,414			332,304			346,571			348,742
Savings		562,617			540,008			518,770			477,877			444,591
Time		501,874			490,768			480,690			464,574			444,267
Deposit accounts	$	1,383,705		$	1,359,189		$	1,331,764		$	1,289,022		$	1,237,600
Other borrowings		20,039			23,289			22,435			26,669			28,238
Federal Home Loan Bank advances		-			-			-			20,000			54,000
Accrued interest payable and other liabilities		11,643			11,134			12,608			11,652			12,371
TOTAL LIABILITIES		1,415,387			1,393,612			1,366,807			1,347,343			1,332,209

Common stock ($1.00 par value)	$	7,847			7,831			7,829			7,829			7,829
Additional paid-in capital		57,278			57,204			57,217			56,727			56,656
Retained earnings		78,301			73,382			69,728			65,922			62,479
Accumulated other comprehensive loss		(5,502	)		(5,364	)		(6,054	)		(6,855	)		(10,402	)
TOTAL STOCKHOLDERS' EQUITY		137,923			133,053			128,720			123,623			116,562

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,553,310		$	1,526,665		$	1,495,527		$	1,470,966		$	1,448,771

(1) Includes available-for-sale and held-to-maturity classifications.

MAIN STREET FINANCIAL SERVICES CORP.
Condensed Consolidated Statements of Income
(Dollars in thousands, except share data - unaudited)

	For the Three Months Ended										For the Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
	2026		2026		2025		2025		2025		2026		2025
Interest income	$	22,720	$	21,974	$	22,066	$	21,122	$	20,698	$	44,694	$	40,096
Interest expense		8,606		8,398		8,325		8,394		8,241		17,004		16,114
Net interest income		14,114		13,576		13,741		12,728		12,457		27,690		23,982
Provision for credit losses		154		528		476		480		374		682		619
Net interest income after provision for credit losses		13,960		13,048		13,265		12,248		12,083		27,008		23,363
Non-interest income		1,255		960		930		1,304		906		2,215		1,725
Non-interest expense
Salaries and employee benefits		3,764		3,771		3,880		3,885		4,361		7,535		8,077
Net occupancy and equipment		1,478		1,598		1,471		1,351		1,405		3,076		2,880
Federal deposit insurance premiums		207		215		189		211		207		422		378
Franchise taxes		189		186		284		126		105		375		210
Advertising and marketing		175		225		205		225		190		400		360
Legal		36		96		65		52		164		132		247
Professional fees		301		338		326		238		365		639		723
ATM Network		101		123		118		246		132		224		212
Audit and accounting		163		129		199		177		132		292		309
Amortization of intangible assets		492		507		522		537		553		999		1,121
Other		635		727		642		746		694		1,362		1,305
Total non-interest expense		7,541		7,915		7,901		7,794		8,308		15,456		15,822
Income before federal income taxes		7,674		6,093		6,294		5,758		4,681		13,767		9,266
Provision for federal income taxes		1,580		1,265		1,392		1,219		1,002		2,845		1,958
Net income	$	6,094	$	4,828	$	4,902	$	4,539	$	3,679	$	10,922	$	7,308

Earnings per share
Basic	$	0.78	$	0.62	$	0.63	$	0.58	$	0.47	$	1.39	$	0.94
Diluted	$	0.77	$	0.61	$	0.62	$	0.58	$	0.47	$	1.38	$	0.93

MAIN STREET FINANCIAL SERVICES CORP.
Consolidated Selected Financial Highlights
(Dollars in thousands, except share data - unaudited)

	For the Three Months Ended															For the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2026			2026			2025			2025			2025			2026			2025
Per common share data
Net income per common share - basic	$	0.78		$	0.62		$	0.63		$	0.58		$	0.47		$	1.39		$	0.94
Net income per common share - diluted	$	0.77		$	0.61		$	0.62		$	0.58		$	0.47		$	1.38		$	0.93
Dividends declared per share	$	0.15		$	0.15		$	0.14		$	0.14		$	0.14		$	0.30		$	0.28
Book value per share (period end)	$	17.58		$	16.99		$	16.44		$	15.79		$	14.89		$	17.58		$	14.89
Tangible book value per share (period end) ^{(1) (2)}	$	15.91		$	15.25		$	14.64		$	13.94		$	12.97		$	15.91		$	12.97
Stock price at end of period	$	20.27		$	18.30		$	17.28		$	16.01		$	12.91		$	20.27		$	12.91
Dividends declared	$	1,174		$	1,174		$	1,096		$	1,096		$	1,092		$	2,348		$	2,184
Dividend yield		2.96	%		3.28	%		3.22	%		3.48	%		4.36	%		2.98	%		4.37	%
Dividend payout ratio		19.26	%		24.32	%		22.36	%		24.15	%		29.68	%		10.75	%		29.68	%
Period ending shares outstanding		7,847,053			7,830,532			7,829,137			7,829,137			7,829,137			7,847,053			7,829,137

Selected ratios
Return on average assets (Annualized)		1.58	%		1.30	%		1.32	%		1.25	%		1.03	%		1.43	%		1.03	%
Return on average equity (Annualized)		18.05	%		14.95	%		16.41	%		15.19	%		13.42	%		16.54	%		13.42	%
Return on average tangible common equity (Annualized) ^{(1) (3)}		20.04	%		16.39	%		17.11	%		16.63	%		14.49	%		18.43	%		14.49	%
Efficiency		49.07	%		54.45	%		53.86	%		55.54	%		62.17	%		51.68	%		62.17	%
Equity to assets at period end		8.88	%		8.72	%		8.61	%		8.40	%		8.05	%		8.88	%		8.05	%
Noninterest expense to average assets		0.49	%		0.52	%		0.54	%		0.54	%		0.58	%		1.00	%		0.58	%

	For the Three Months Ended															For the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2026			2026			2025			2025			2025			2026			2025
Yields
Interest-earning assets:
Loans receivable ⁽¹⁾		6.59	%		6.55	%		6.75	%		6.56	%		6.48	%		6.57	%		6.36	%
Investment securities ^{(1) (2)}		3.89	%		4.32	%		3.67	%		3.63	%		4.02	%		4.11	%		3.99	%
Interest-earning deposits with other banks		3.11	%		3.43	%		5.82	%		5.43	%		4.20	%		3.26	%		4.48	%
Total interest-earning assets		6.19	%		6.21	%		6.39	%		6.20	%		6.11	%		6.20	%		6.01	%
Interest-bearing liabilities
Deposits:		2.43	%		2.44	%		2.44	%		2.45	%		2.37	%		2.44	%		2.34	%
Other borrowings		5.20	%		5.35	%		5.10	%		3.92	%		4.26	%		5.28	%		3.96	%
Federal Home Loan Bank advances		-			3.70	%		4.27	%		4.59	%		4.50	%		3.65	%		4.40	%
Total interest-bearing liabilities		2.47	%		2.49	%		2.49	%		2.54	%		2.53	%		2.48	%		2.51	%
Net interest margin ⁽³⁾		3.85	%		3.83	%		3.98	%		3.73	%		3.68	%		3.84	%		3.60	%

⁽¹⁾Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 22.5%.
⁽²⁾Yield is calculated on the basis of amortized cost.
⁽³⁾Net interest margin represents net interest income as a percentage of average interest-earning assets.

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2026			2026			2025			2025			2025
Asset quality data
(Dollars in thousands, except share data - unaudited)
Nonperforming loans	$	8,514		$	6,384		$	5,391		$	5,013		$	4,720
Other real estate owned	$	-			84			149			537			474
Nonperforming assets	$	8,514		$	6,468		$	5,540		$	5,550		$	5,194

Allowance for credit losses	$	13,762		$	13,671		$	13,130		$	12,710		$	12,398
Allowance for credit losses/total loans		1.07	%		1.07	%		1.07	%		1.06	%		1.06	%
Net charge-offs (recoveries):
Quarter-to-date	$	59		$	(37	)	$	40		$	195		$	35
Year-to-date		22			(37	)		253			213			18
Net charge-offs (recoveries) to average loans, annualized:
Quarter-to-date		0.02	%		(0.01	%)		0.01	%		0.07	%		0.01	%
Year-to-date		0.00	%		(0.01	%)		0.09	%		0.08	%		0.01	%

Nonperforming loans/total average loans		0.67	%		0.52	%		0.45	%		0.43	%		0.41	%
Nonperforming loans/total loans		0.66	%		0.50	%		0.44	%		0.42	%		0.40	%
Allowance for credit losses/nonperforming loans		161.63	%		214.14	%		243.55	%		253.54	%		262.67	%
Nonperforming assets/total assets		0.55	%		0.51	%		0.45	%		0.46	%		0.44	%

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2026			2026			2025			2025			2025
Non-GAAP reconciliation
Net Income as reported - GAAP	$	6,094		$	4,828		$	4,902		$	4,539		$	3,679
Effect of BOLI death benefit recognition (tax-free)		-			-			-			(337	)		-
Effect of termination expenses (net of tax benefit)		-			-			-			-			416
Net Income non-GAAP	$	6,094		$	4,828		$	4,902		$	4,202		$	4,095

Earnings per share - GAAP	$	0.78		$	0.62		$	0.63		$	0.58		$	0.47
Effect of BOLI death benefit recognition (tax-free)		-			-			-			(0.04	)		-
Effect of termination expenses (net of tax benefit)		-			-			-			-			0.05
Earnings per share non-GAAP	$	0.78		$	0.62		$	0.63		$	0.54		$	0.52

Return on average assets - GAAP		1.58	%		1.30	%		1.32	%		1.25	%		1.03	%
Effect of BOLI death benefit recognition (tax-free)		-			-			-			(0.09	%)		-
Effect of termination expenses (net of tax benefit)		-			-			-			-			0.12	%
Return on average assets non-GAAP		1.58	%		1.30	%		1.32	%		1.16	%		1.14	%

Return on average equity - GAAP		18.05	%		14.95	%		16.41	%		15.19	%		13.42	%
Effect of BOLI death benefit recognition (tax-free)		-			-			-			(1.13	%)		-
Effect of termination expenses (net of tax benefit)		-			-			-			-			1.52	%
Return on average equity non-GAAP		18.05	%		14.95	%		16.41	%		14.06	%		14.94	%

Efficiency Ratio - GAAP		49.07	%		54.45	%		53.86	%		55.54	%		62.17	%
Effect of BOLI death benefit recognition (tax-free)		-			-			-			1.37	%		-
Effect of termination expenses (net of tax benefit)		-			-			-			-			(3.11	%)
Efficiency Ratio non-GAAP		49.07	%		54.45	%		53.86	%		56.91	%		59.06	%

MAIN STREET FINANCIAL SERVICES CORP.
Average Balance Sheets
(Dollars in thousands - unaudited)

	For the three months ended June 30,
	2026						2025
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Interest-earning assets:
Loans receivable, net	$	1,267,068	$	20,829	6.59	%	$	1,149,121	$	18,610	6.48	%
Investment securities		152,614		1,482	3.89	%		159,990		1,609	4.02	%
Interest-earning deposits		52,791		409	3.11	%		45,706		480	4.20	%
Total interest-earning assets		1,472,473		22,720	6.19	%		1,354,817		20,699	6.11	%
Noninterest-earning assets		72,938						77,343
Total assets	$	1,545,411					$	1,432,159
Interest-bearing liabilities:
Deposits	$	1,377,190	$	8,340	2.43	%	$	1,204,804	$	7,135	2.37	%
Other borrowings		20,534		266	5.20	%		27,856		296	4.26	%
Federal Home Loan Bank advances		-		-	-			72,230		811	4.50	%
Total interest-bearing liabilities		1,397,724		8,606	2.47	%		1,304,890		8,241	2.53	%
Noninterest-bearing liabilities		12,305						17,628
Total liabilities		1,410,030						1,322,517
Stockholders’ equity		135,382						109,642
Total liabilities and stockholders’ equity	$	1,545,411					$	1,432,159
Net interest income			$	14,114					$	12,457
Interest rate spread					3.72	%					3.58	%
Net yield on interest-earning assets					3.84	%					3.68	%
Ratio of average interest-earning assets to average interest-bearing liabilities					105.35	%					103.83	%

Interest income/avge earnings assets					6.19	%					6.11	%
Interest expense/avge earnings assets					2.34	%					2.43	%
Net interest margin					3.85	%					3.68	%

MAIN STREET FINANCIAL SERVICES CORP.
Average Balance Sheets
(Dollars in thousands - unaudited)

	For the three months ended
	June 30, 2026						March 31, 2026
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Interest-earning assets:
Loans receivable, net	$	1,267,068	$	20,829	6.59	%	$	1,232,531	$	19,916	6.55	%
Investment securities		152,614		1,482	3.89	%		154,223		1,643	4.32	%
Interest-earning deposits		52,791		409	3.11	%		49,078		415	3.43	%
Total interest-earning assets		1,472,473		22,720	6.19	%		1,435,832		21,974	6.21	%
Noninterest-earning assets		72,938						72,976
Total assets	$	1,545,411					$	1,508,808
Interest-bearing liabilities:
Deposits	$	1,377,190	$	8,340	2.43	%	$	1,342,178	$	8,082	2.44	%
Other borrowings		20,534		266	5.20	%		20,596		272	5.35	%
Federal Home Loan Bank advances		-		-	-			4,821		44	3.70	%
Total interest-bearing liabilities		1,397,724		8,606	2.47	%		1,367,595		8,398	2.49	%
Noninterest-bearing liabilities		12,305						10,280
Total liabilities		1,410,030						1,377,875
Stockholders’ equity		135,382						130,933
Total liabilities and stockholders’ equity	$	1,545,411					$	1,508,808
Net interest income			$	14,114					$	13,577
Interest rate spread					3.72	%					3.72	%
Net yield on interest-earning assets					3.84	%					3.83	%
Ratio of average interest-earning assets to average interest-bearing liabilities					105.35	%					104.99	%

Interest income/avge earnings assets					6.19	%					6.21	%
Interest expense/avge earnings assets					2.34	%					2.37	%
Net interest margin					3.85	%					3.83	%

MAIN STREET FINANCIAL SERVICES CORP.
Average Balance Sheets
(Dollars in thousands - unaudited)

	For the six months ended June 30,
	2026						2025
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Interest-earning assets:
Loans receivable, net	$	1,249,800	$	40,745	6.57	%	$	1,136,610	$	35,860	6.36	%
Investment securities		153,419		3,125	4.11	%		161,264		3,192	3.99	%
Interest-earning deposits		50,934		824	3.26	%		47,051		1,044	4.48	%
Total interest-earning assets		1,454,153		44,694	6.20	%		1,344,925		40,096	6.01	%
Noninterest-earning assets		91,259						78,153
Total assets	$	1,545,411					$	1,423,079
Interest-bearing liabilities:
Deposits	$	1,359,684	$	16,422	2.44	%	$	1,186,725	$	13,787	2.34	%
Other borrowings		20,573		538	5.28	%		27,624		542	3.96	%
Federal Home Loan Bank advances		2,410		44	3.65	%		81,866		1,786	4.40	%
Total interest-bearing liabilities		1,382,668		17,004	2.48	%		1,296,214		16,114	2.51	%
Noninterest-bearing liabilities		29,571						17,223
Total liabilities		1,412,239						1,313,437
Stockholders’ equity		133,172						109,642
Total liabilities and stockholders’ equity	$	1,545,411					$	1,423,079
Net interest income			$	27,691					$	23,982
Interest rate spread					3.72	%					3.51	%
Net yield on interest-earning assets					3.84	%					3.60	%
Ratio of average interest-earning assets to average interest-bearing liabilities					105.17	%					103.76	%

Interest income/avge earnings assets					6.20	%					6.01	%
Interest expense/avge earnings assets					2.36	%					2.42	%
Net interest margin					3.84	%					3.60	%

FAQ

How did Main Street Financial Services (MSWV) perform in Q2 2026 earnings?

Main Street Financial Services reported Q2 2026 net income of $6.1 million, up 65.7% year over year. According to the company, diluted EPS rose to $0.77, with stronger net interest income, higher noninterest income, and lower noninterest expenses supporting the record quarterly results.

What were Main Street Financial Services (MSWV) key profitability ratios in Q2 2026?

In Q2 2026, Main Street Financial Services reported a 1.58% ROA and 18.05% ROE. According to the company, return on average tangible common equity reached 20.04%, supported by higher earnings and efficiency improvements, while the efficiency ratio improved to 49.07% from 62.17% a year earlier.

How did loans and deposits change for Main Street Financial Services (MSWV) in Q2 2026?

Main Street Financial Services grew loans by $10.9 million and deposits by $24.5 million in Q2 2026. According to the company, loan growth was primarily organic, while deposit growth was driven by Maximize Money Market accounts and Short-Term Relationship Certificates of Deposit products.

What is the dividend announced by Main Street Financial Services (MSWV) after Q2 2026 results?

Main Street Financial Services declared a $0.15 per share cash dividend on July 10, 2026. According to the company, this follows strong quarterly operating results and compares with prior quarterly dividends of $0.14 per share during much of 2025, continuing a consistent dividend program.

How did Main Street Financial Services (MSWV) net interest margin and funding costs trend in Q2 2026?

Net interest margin rose to 3.85% in Q2 2026, up 17 basis points year over year. According to the company, cost of funds was 2.47%, with deposit costs at 2.43% and borrowing costs at 5.20%, reflecting mix shifts and reduced reliance on Federal Home Loan Bank advances.

What is Main Street Financial Services (MSWV) credit quality profile as of June 30, 2026?

As of June 30, 2026, Main Street Financial Services reported $8.5 million in nonperforming loans and net charge-offs of $59,000 for the quarter. According to the company, the allowance for credit losses was $13.8 million, representing 1.07% of total loans, with a $154,000 quarterly provision.

What was Main Street Financial Services (MSWV) book value and stock price at Q2 2026 period-end?

At June 30, 2026, book value per share was $17.58, and the stock price was $20.27. According to the company, tangible book value per share reached $15.91, while total stockholders’ equity increased to $137.9 million, reflecting retained earnings and improved accumulated other comprehensive income.