Main Street Financial Services Corp. Announces Earnings for First Quarter of 2025

Core Insights - Main Street Financial Services Corp. reported a net income of $3.6 million, or $0.47 per common share, for Q1 2025, showing an increase from $1.5 million, or $0.40 per share, in Q1 2024 [2][7][30] - The merger with Wayne Savings Bancshares, completed on May 31, 2024, resulted in a combined financial holding company with assets of $1.4 billion [3][4] - The company experienced significant growth in net interest income, which rose by 128% to $11.5 million in Q1 2025 compared to $5.1 million in Q1 2024 [5][26] Financial Performance - Return on average equity for Q1 2025 was 13.27%, up from 12.94% in Q1 2024, while return on average assets increased to 1.03% from 0.86% [2][5] - Net interest margin improved to 3.44%, an increase of 83 basis points from 2.61% in Q1 2024 [5] - Loan yields increased to 6.14%, up 81 basis points from 5.33% in Q1 2024 [5] Loan and Deposit Growth - The company reported loan growth of $17.8 million, or 6.4% annualized, during Q1 2025 [7][11] - Deposit growth was $28.3 million, or 9.8% annualized, for the same period [7][15] - The total loan balances reached $1.13 billion as of March 31, 2025 [11] Noninterest Income and Expenses - Noninterest income totaled $0.8 million, reflecting a 20.8% increase compared to Q1 2024 [8] - Noninterest expenses rose to $7.5 million, an increase of $3.6 million due to combined expenses post-merger [9] Asset Quality and Credit Losses - The provision for credit losses was recorded at $245,000 for Q1 2025, with total nonperforming loans decreasing to $4.9 million from $6.1 million at the end of 2024 [6][13] - The allowance for credit losses was $12.0 million, representing 1.05% of total loans [12] Balance Sheet Highlights - Total assets were reported at $1.41 billion, with total liabilities of $1.30 billion and stockholders' equity of $114.8 million as of March 31, 2025 [11][16] - The company declared a cash dividend of $0.14 per share on April 11, 2025 [7]