Business Highlights Successfully completed the merger of Main Street Financial Services Corp. (Main Street) and Wayne Savings Bancshares, Inc. (Wayne) on May 31, 2024, forming a holding company with $1.4 billion in assets Successfully completed the integration of core-processing systems on June 10, 2024 Tangible book value per share of $11.75 as of June 30, 2024 Upgraded to OTCQX Best Market on July 16, 2024 Declared cash dividend of $0.14 per share on July 19, 2024 WOOSTER, Ohio, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Main Street Financial Services Corp. (OTCQX:MSWV), (the "Company"), the holding company parent of Main Street Bank Corp. reported a net loss (unaudited) of $3.5 million, or $0.68 per common share, for the three months ended June 30, 2024. Excluding the merger-related expenses (non-GAAP) for the three months ended June 30, 2024, net income was $1.9 million, or $0.38 per share. Merger-related expenses totaled $6.7 million for the quarter, including $4.6 million attributed to the loss provision expense, $2.1 million in noninterest expense, and a tax-related impact of $1.3 million. The return on average equity and return on average assets for the second quarter of 2024 was (17.16)% and (1.38)%, compared to 14.36% and 0.92%, for the second quarter of 2023. Excluding merger-related expenses (non-GAAP), return on average equity and return on average assets for the quarter ended June 30, 2024, was 9.56% and 0.77%, respectively. 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 $1.4 billion. 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 quarter ended June 30, 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 June 30, 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. On July 16, 2024, the Company was qualified to begin trading on the OTCQX Best Market, enabling more transparent trading and easier access to company information for shareholders. On July 19, 2024, the Company declared a cash dividend of $0.14. The quarterly cash dividend will be paid on August 16, 2024, to stockholders of record as of August 2, 2024. President and CEO James R. VanSickle commented "I would like to thank all of my teammates at Main Street Bank for their dedication and hard work during the merger and core-processing system conversion this quarter. We remain focused on the merger integration process and ensuring our customers and our communities receive a first-class banking experience." Second Quarter 2024 Financial Results Net interest income was $6.4 million for the quarter ended June 30, 2024, up 12.0% from $5.7 million for the quarter ended June 30, 2023. The net interest margin of 2.69% for the second quarter of 2024 decreased 46 basis points from 3.15% for the second quarter of 2023. Loan yields were 5.78% for the quarter ended June 30, 2024, up 66 basis points when compared to 5.12% for the quarter ended June 30, 2023. The cost of funds for the second quarter of 2024, was 2.69%, up 106 basis points when compared to the second quarter of 2023. The cost of funds increase is largely due to utilizing higher-cost wholesale funding, such as FHLB advances and brokered certificates of deposit, and shifting deposit composition to higher-yielding product offerings. A provision for credit losses and unfunded commitments of $4.7 million was recorded for the quarter ended June 30, 2024. The recognized provision expense was primarily due to the acquired loan portfolio, including the impact of "Day 2" non-purchased credit deteriorated loans ("non-PCD") accounting treatment and a reserve for unfunded commitments. The non-PCD related provision expense was $4.2 million, and the provision expense related to unfunded commitments was $0.4 million, totaling $4.6 million in merger-related (non-GAAP) provision. Noninterest expense totaled $6.7 million for the quarter ended June 30, 2024, an increase of $2.8 million when compared to the quarter ended June 30, 2023. Merger-related noninterest expenses (non-GAAP) totaled $2.1 million for the quarter, consisting of $0.9 million in professional fees, $0.7 million in compensation, $0.3 million in other expense and $0.2 million in legal expense. Excluding merger-related expenses (non-GAAP), the Company's efficiency ratio was 65.2% for the quarter ended June 30, 2024, compared to 61.6% for the quarter ended June 30, 2023. June 30, 2024 Financial Condition At June 30, 2024, the Company had total assets of $1.4 billion with net loan balances totaling $1.1 billion, which includes a gross balance of $431.4 million in acquired loans from the merger transaction and $12.7 million of organic loan growth during the quarter. Additionally, the Company elected to sell approximately $27 million of the acquired securities portfolio and pay down existing FHLB advances. The allowance for credit losses was $11.7 million at June 30, 2024, compared to $7.3 million at December 31, 2023. The increase is a result of establishing an allowance for credit losses on the acquired non-PCD loan portfolio during the second quarter of 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 $6.0 million at June 30, 2024, an increase from $0.4 million at December 31, 2023. The NPL to loan ratio was 0.53% as of June 30, 2024. Past due loan balances of 30 days and more increased from $2.8 million at December 31, 2023, to $4.2 million at June 30, 2024. The increase in nonperforming and past due loans is due to the impact of the acquired loan portfolio. Total liabilities increased to $1.3 billion at June 30, 2024. Total deposits increased to $1.1 billion primarily due to the assumption of $487.4 million in deposits from the merger transaction. The increase in deposits was partially offset by a reduction in the utilization of brokered deposits from $116.7 million at December 31, 2023 to no brokered deposits at June 30, 2024. Total stockholders' equity was $105.9 million at June 30, 2024, an increase of $52.9 million when compared to the December 31, 2023 balance. The increase was primarily driven by the merger between Main Street and Wayne. Total aggregate consideration for the merger was $49.3 million, generating approximately $2.6 million in preliminary goodwill subject to adjustment in accordance with ASC 805. The Company's tangible book value (non-GAAP) was $11.75 per share at June 30, 2024. 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 DisclosureThis 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-StatementsThis 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)     June 30, 2024   December 31, 2023   ASSETS                   Cash and cash equivalents $ 40,623     $ 20,884     Securities, net (1)   134,704       86,405     Loans receivable, net   1,106,459       669,603     Federal Home Loan Bank stock   7,934       3,959     Premises & equipment, net   11,230       4,904     Bank-owned life insurance   21,869       11,706     Other assets   39,882       12,486               TOTAL ASSETS $ 1,362,701     $ 809,947               LIABILITIES AND STOCKHOLDERS' EQUITY                   Deposit accounts $ 1,080,734     $ 693,126     Other short-term borrowings   25,371       8,743     Federal Home Loan Bank advances   134,000       47,000     Accrued interest payable and other liabilities   16,711       8,111               TOTAL LIABILITIES   1,256,816       756,980                         Common stock (7,787,055 shares of $1.00 par value issued)   7,787       398     Additional paid-in capital   55,358       36,715     Retained earnings   51,778       55,342     Treasury Stock, at cost - 0 shares and 1,777,824 shares at         June 30, 2024 and December 31, 2023, respectively.   -       (30,330 )   Accumulated other comprehensive loss   (9,038 )     (9,158 )             TOTAL STOCKHOLDERS' EQUITY   105,885       52,967               TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,362,701     $ 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     June 30,       2024       2023             Interest income $ 12,572     $ 8,571   Interest expense   6,185       2,867   Net interest income   6,387       5,704   Provision for credit losses   4,720       170   Net interest income after provision for credit losses   1,666       5,534   Non-interest income   716       706   Non-interest expense         Salaries and employee benefits   2,889       1,989   Net occupancy and equipment expense   823       593   Federal deposit insurance premiums   179       165   Franchise taxes   180       101   Advertising and marketing   150       75   Legal   180       339   Professional fees   1,163       122   ATM network   266       103   Auditing and accounting   121       63   Other   772       399   Total non-interest expense   6,723