Sales Performance - Sales for the quarter were $69,399,000, an increase of 3.2% from $67,167,000 in the comparable period of the prior year [90]. - Domestic sales for the quarter were $50,953,000, down 2.0% from $51,976,000 in the comparable period of the prior year, while international sales increased by 21.4% to $18,446,000 from $15,191,000 [90]. - For the nine months ended January 31, 2026, sales were $210,599,000, up 28.9% from $163,324,000 in the comparable period of the prior year, driven by a 29.6% increase in domestic sales [91]. Financial Metrics - Gross profit margin for the three months ended January 31, 2026 was 26.7%, compared to 27.4% in the prior year, while the nine-month margin improved to 28.1% from 27.4% [93]. - Operating expenses for the three months ended January 31, 2026 were $15,963,000, or 23.0% of sales, down from 24.0% in the prior year [95]. - Net earnings for the three months ended January 31, 2026 were $692,000, or $0.23 per diluted share, compared to $1,354,000, or $0.45 per diluted share, in the prior year [99]. - The Company had working capital of $54,793,000 at January 31, 2026, down from $64,651,000 at April 30, 2025, with a current ratio of 2.1-to-1.0 [101]. Order Backlog - The Company's order backlog was $183.2 million at January 31, 2026, down from $221.6 million at January 31, 2025 [92]. Strategic Acquisition - The acquisition of Nu Aire for $55.0 million enhances the Company's capabilities and market presence, particularly in laboratory furnishings [86][88]. Market Outlook - The Company anticipates continued volatility in project delivery and demand, influenced by external economic factors and construction schedules [103].

Sales and Market Segments - Trinseo PLC's Engineered Materials segment generated approximately 34% of total net sales in Europe, 45% in the United States, and 14% in Asia in 2025[37]. - In 2025, net sales to CASE applications made up approximately 17% of total Latex Binders net sales, highlighting the segment's focus on higher growth and margin potential[52]. - In 2025, compounding products represented approximately 29% of total Engineered Materials segment net sales, showcasing the segment's significance[40]. - In 2025, approximately 62% of net sales from the Polymer Solutions segment were generated in Europe, 15% in North America, and the majority in Asia[58]. - Copolymers, including ABS and SAN, represented approximately 44% of total segment net sales in 2025[59]. - The Americas Styrenics segment supplied 18% of the styrene monomer capacity in North America and generated $12.5 million in cash dividends in 2025[74]. - In 2025, 59% of the styrene monomer produced by Americas Styrenics was consumed in its own production of polystyrene[75]. Strategic Initiatives and Restructuring - The company has implemented multiple restructuring initiatives, including the closure of underperforming plants and product lines, to improve profitability and cash flow generation[27]. - Trinseo PLC continues to evaluate strategic alternatives to divest all or a portion of its styrenics businesses, which is integral to its long-term strategy[29]. - The company has announced restructuring programs aimed at reducing costs and improving profitability, which may incur higher than expected costs[164]. - The company has initiated a sale process for its interest in Americas Styrenics, but uncertainties regarding timing, valuation, and market conditions may impact the success of this divestiture[184]. Research and Development - The company operates 11 research and development facilities globally, which are critical to its innovation capabilities and global presence[22]. - The company focuses on customer-centric R&D, with three R&D Centers of Excellence located in Germany, the Netherlands, and Pennsylvania[93]. - R&D and TS&D costs for the company were $63.6 million, $63.5 million, and $57.6 million for the years ended December 31, 2025, 2024, and 2023, respectively[94]. - The company has invested in differentiated and sustainable product offerings, focusing on applications within its compounding business segments and CASE applications[25]. Sustainability and Environmental Initiatives - Sustainable products represented 5% of the Engineered Materials segment volume in 2025, indicating a core growth area for the company[39]. - The company views recycled polystyrene products as important for sustainability and customer needs[67]. - The company monitors its greenhouse gas emissions, water usage, waste, and energy consumption, targeting reductions in these areas[110]. - Compliance with evolving environmental, health, and safety laws may require substantial expenditures, including capital investments for pollution control facilities[205]. - New environmental regulations related to climate change may increase costs associated with transportation, storage, and waste disposal, adversely affecting operations and financial condition[206]. Financial Condition and Risks - Trinseo has identified substantial doubt regarding its ability to continue as a going concern due to significant debt and compliance with financial covenants[138]. - The company is engaged in discussions with financial stakeholders to explore restructuring options for its substantial indebtedness, including potential amendments to existing debt agreements[145]. - Trinseo's credit ratings are near the lower end of the scale, which limits financial flexibility and increases borrowing costs[151]. - The company's current level of indebtedness could adversely affect its financial condition, with significant restrictions on incurring additional debt[155]. - The company faces risks related to unexpected payment obligations and liabilities that could create liquidity challenges[144]. Employee Engagement and Corporate Culture - The company emphasizes a People Strategy that includes Organizational Development, Talent Management, and Equity & Inclusion to support employee engagement and retention[125]. - Trinseo's Board comprises 55% women and 33% of the executive leadership team are women, reflecting a commitment to equity and inclusion[127]. - The company conducts internal reviews to ensure equitable compensation practices across all jurisdictions, including assessments of pay equity based on ethnicity in the U.S.[131]. - The company is implementing a goal-setting scorecard for employee performance evaluation aligned with corporate goals, including financial metrics[130]. Legal and Regulatory Challenges - Legal claims and regulatory actions related to hazardous substances could materially affect the company's product sales and profitability[176]. - The company is subject to risks associated with the operation of its production facilities, which may lead to production delays and liabilities due to incidents involving hazardous materials[177]. - The heightened scrutiny of certain materials used in products may lead to regulatory actions or declining sales, impacting financial performance[201]. - Regulatory actions to reduce plastic waste may decrease demand for certain products over time, impacting sales and necessitating the development of recycled product technologies[202]. Intellectual Property and Competitive Position - Intellectual property rights are crucial for competitive advantage; failure to protect these rights could harm business and financial condition[214]. - The company has licensed certain intellectual property to third parties, and inability to enforce these rights could adversely affect financial condition[217]. Operational Challenges - Disruptions at key manufacturing facilities could significantly reduce sales and impact the ability to meet customer needs, especially if production is at or near full capacity[178]. - Capital projects are essential for maintaining operational reliability, and any failure to execute these projects within budget and timelines could adversely affect financial performance[180]. - Joint ventures may face operational challenges if partners do not fulfill obligations, which could negatively affect the company's financial results[186].

Financial Performance - Net income for 2025 was $15.1 million, or $3.14 per share, down 36.2% from $23.7 million, or $4.96 per share, in 2024[219] - The return on average equity for 2025 was 6.40%, a decrease from 11.53% in 2024[219] - Net interest income for 2025 was $87.2 million, a 17.7% increase from $74.1 million in 2024[218] - Non-interest income decreased significantly by 65.8% to $7.9 million in 2025 from $23.2 million in 2024[218] - The efficiency ratio (unadjusted) increased to 74.37% in 2025 from 69.12% in 2024[218] - Adjusted net income for 2025, excluding nonrecurring items, was $27.9 million, or $5.80 per share, reflecting a 17.8% increase from the previous year[220] Assets and Liabilities - As of December 31, 2025, the Corporation had consolidated assets of $2.710 billion, loans of $2.270 billion, deposits of $2.271 billion, and shareholders' equity of $254.7 million[24] - The Corporation's portfolio of commercial real estate and commercial and industrial loans totaled $1.734 billion, representing 76.4% of total loans as of December 31, 2025[117] - The Bank had $1.8 billion of deposit liabilities, which accounted for 79.6% of total deposits, that had no maturity and could be withdrawn at any time[131] Capital and Funding - The Corporation issued $45.0 million in ten-year subordinated notes during the year ended December 31, 2025, as an additional funding source[40] - The Corporation provided the Bank with a $37.0 million capital contribution from the proceeds of the subordinated debt issuance, enhancing its regulatory capital position[200] - As of December 31, 2025, approximately $51.0 million was available for the payment of dividends by the Bank to the Corporation without prior approval[77] Regulatory Environment - The Corporation is subject to comprehensive regulation and supervision by regulatory authorities, impacting its operations and capital distributions[59] - The Bank was in compliance with all regulatory capital requirements as of December 31, 2025, exceeding the minimum capital ratios necessary to be considered well capitalized[90] - The Bank is subject to substantial regulatory restrictions affecting its ability to pay dividends, requiring prior approval if certain thresholds are exceeded[77] - The Corporation is subject to the USA PATRIOT Act, which imposes obligations to establish anti-money laundering programs and compliance measures[102] Competition and Market Presence - The Bank held 64.56% of total market deposits in Chemung County, indicating a strong local market presence[48] - The Bank faces intense competition from local, regional, and national financial institutions, including credit unions that may have a competitive advantage due to less regulation[51] - The Corporation operates in a highly regulated environment, subject to extensive regulation by authorities such as the FRB, FDIC, and NYSDFS, which could materially impact its operations[138] Workforce and Diversity - As of December 31, 2025, the Bank employed 348 full-time equivalent employees across 30 locations in New York and Pennsylvania, with an average tenure of 7.8 years[54] - The Corporation's workforce was 71% female and 29% male as of December 31, 2025, reflecting the diversity of the communities it serves[54] - The Corporation's success is significantly dependent on its ability to attract and retain skilled personnel, with competition for talent being intense[163] Economic Conditions and Risks - Economic conditions, including interest rates, inflation, and unemployment, significantly impact the Corporation's financial performance and could lead to increased charge-offs and provisions for credit losses[112] - The Corporation's ability to assess creditworthiness may be impaired if current models become less predictive due to adverse economic conditions[113] - The Corporation's risk management framework may not effectively mitigate risks, potentially leading to significant losses[147] Loan Portfolio and Credit Losses - The Bank's loan portfolio is diversified across commercial and industrial loans, commercial mortgages, residential mortgages, and consumer loans, with a focus on high-quality, market-yielding loans[29] - The allowance for credit losses on loans totaled $24.2 million, an increase from $21.4 million as of December 31, 2024[211] - The provision for credit losses for the year ended December 31, 2025, was $4.4 million, compared to a credit of $46,000 in 2024[218] Wealth Management - The Corporation's wealth management segment managed $2.338 billion in assets, contributing significantly to non-interest income, with $301.8 million of those assets held under management for the Corporation[46] - The Corporation's wealth management operations are subject to risks from stock market fluctuations, which can adversely affect transaction fees and client activity[157] Technological and Operational Risks - The Corporation relies on third-party vendors for operations, exposing it to operational risks from human error and system failures[152] - The rapid technological changes in the banking industry require the Corporation to adapt or risk losing competitive advantage[149] Stock and Market Performance - The Corporation's common stock is traded on NASDAQ under the symbol "CHMG," but it is not heavily traded, leading to potential volatility in stock prices[165] - The cumulative total return on the Corporation's common stock increased to 188.41 by December 31, 2025, compared to 100.00 at the start of the period[192]

Financial Position and Investments - As of December 31, 2025, the legal lending limit for loans to one borrower was approximately $46.3 million[51]. - The held-to-maturity portfolio totaled $13.8 million, primarily composed of municipal securities, as of December 31, 2025[57]. - The available-for-sale portfolio, carried at fair value, totaled $58.0 million as of December 31, 2025[57]. - In April 2021, the company issued $30 million in fixed-to-floating subordinated notes with a fixed interest rate of 3.75% until April 15, 2026[58]. - In March 2022, the company completed the issuance of $43.8 million in fixed-to-floating rate subordinated notes with a fixed interest rate of 4.00% until March 15, 2027[59]. - The bank's investment policy allows for investments in mortgage-backed securities and U.S. government debt securities[54]. Employee and Diversity Information - As of December 31, 2025, the company employed 171 full-time employees, with no employees represented by a collective bargaining agreement[80]. - Seventy-three percent of the Company's employees self-identify as either female or ethnically diverse[82]. - The Company had 42 promotions in fiscal year 2025, with 16 being ethnically diverse females and 4 ethnically diverse males[95]. - The employee age distribution shows 30% are aged 50-59, and 27% are aged 40-49, indicating a balanced age diversity[91]. - The Company maintains a gender distribution of 56.1% female and 43.9% male among its employees[94]. - The Company is focused on equal pay for equal work and developing all employees to reach their full potential[90]. Governance and Regulatory Compliance - The Company has had a technology expert on the Board since 2011, reflecting a commitment to forward-looking governance[84]. - The Company is subject to extensive regulation under the Bank Holding Company Act and various federal and state laws, impacting its operations and financial condition[99]. - The Economic Growth Act increased the asset threshold for small bank holding companies from $1 billion to $3 billion, benefiting the Company by allowing for less frequent examinations[105]. - The Company is eligible to be treated as a "small bank holding company," which affects its capital adequacy evaluation[111]. - The bank holding company must maintain a common equity Tier 1 capital ratio of at least 4.5% and a Tier 1 capital ratio of at least 6%[129]. - The bank is subject to restrictions on dividends based on its net income and capital adequacy ratios[116]. Risk Management and Financial Stability - The company is significantly exposed to interest rate risk, with estimated changes in net interest income ranging from a decrease of 18.46% to an increase of 6.20% based on various interest rate shifts[458]. - The economic value of equity (EVE) is projected to decrease by $62,659 thousand (18.46%) with a 400 basis point increase in interest rates[459]. - The company is liability sensitive as of December 31, 2025, indicating a potential vulnerability to rising interest rates[464]. - The bank utilizes derivative financial instruments, such as interest rate swaps, to manage interest rate risk and assist customers[465]. Internal Controls and Audit - MainStreet Bancshares, Inc. maintained effective internal control over financial reporting as of December 31, 2025, based on established criteria[479]. - The audit included consolidated financial statements for the years ended December 31, 2025, 2024, and 2023, with an unqualified opinion expressed[480]. - The audit procedures involved testing the design and operating effectiveness of internal controls related to the allowance for credit losses (ACLL)[478]. - Significant judgments and assumptions used in the ACLL calculation were assessed for reasonableness[478]. - The audit was conducted in accordance with PCAOB standards, ensuring a thorough evaluation of internal controls[482]. - The company has been audited by Yount, Hyde & Barbour, P.C. since 2008, indicating a long-term relationship with the auditing firm[478].

Financial Position and Capital - As of December 31, 2025, the legal lending limit for loans to one borrower was approximately $46.3 million[51]. - The held-to-maturity portfolio totaled $13.8 million, primarily composed of municipal securities, as of December 31, 2025[57]. - The available-for-sale portfolio, carried at fair value, totaled $58.0 million as of December 31, 2025[57]. - The allowance for credit losses on loans (ACLL) totaled $19.3 million as of December 31, 2025, representing the company's best estimate of expected credit losses[473]. - The collectively evaluated ACLL consists of both quantitative and qualitative components, with the quantitative component derived from a weighted average remaining maturity (WARM) model[474]. - The bank's capital levels are monitored using risk-based guidelines and leverage ratios[124]. - The bank must maintain a common equity Tier 1 capital ratio of at least 4.5% and a Tier 1 capital ratio of at least 6%[129]. - As of December 31, 2025, the bank was classified as "well-capitalized" under regulatory standards[133]. - The capital conservation buffer requires banks to hold an additional 2.5% of common equity Tier 1 capital to avoid limits on capital distributions[127]. - The bank is subject to restrictions on dividends if it does not meet minimum capital adequacy ratios[116]. Debt Issuance - In April 2021, the company issued $30 million in fixed-to-floating subordinated notes with a fixed interest rate of 3.75% until April 15, 2026[58]. - The company completed the issuance of $43.8 million in subordinated notes in March 2022, with a fixed interest rate of 4.00% until March 15, 2027[59]. Employment and Diversity - As of December 31, 2025, the company employed 171 full-time employees, with no employees represented by a collective bargaining agreement[80]. - Seventy-three percent of the Company's employees self-identify as either female or ethnically diverse[82]. - The Board consists of ten directors, with eight being independent; two independent directors self-identify as female, one as African-American, and one as Hispanic[85]. - The Company had forty-two promotions in 2025, with 16 being ethnically diverse females and 4 being ethnically diverse males[95]. - The employee age distribution shows 30% are aged 50-59, and 27% are aged 40-49, indicating a balanced age diversity[91]. - The Company is focused on equal pay for equal work and developing all employees to reach their full potential[90]. - The Company celebrates diversity and fosters opportunities to learn about different cultures, which contributes to exceeding customer expectations[96]. Regulatory Environment - The Company is subject to extensive regulation under the Bank Holding Company Act and various federal and state laws[99]. - The Economic Growth Act increased the asset threshold for small bank holding companies from $1 billion to $3 billion, benefiting the Company[105]. - The Company is eligible to be treated as a "small bank holding company" under the Federal Reserve's policy, affecting its capital adequacy evaluation[111]. - The bank holding company must maintain a common equity Tier 1 capital ratio of at least 4.5% and a Tier 1 capital ratio of at least 6%[129]. - The bank holding company is limited to a liability of 5% of the bank's assets when it becomes undercapitalized[113]. - The Federal Reserve requires prior approval for acquisitions exceeding 5% of voting stock or substantial assets of any bank[114]. - Control is presumed if a person or entity acquires 25% or more of voting securities of the bank holding company[115]. - The bank must obtain written approval from its primary federal regulator before any merger or acquisition[135]. - Federal law limits transactions with affiliates to 10% of the bank's capital stock and surplus for any one affiliate, and 20% for all affiliates combined[137]. - The Dodd-Frank Act expanded the scope of limitations on affiliate transactions, including credit exposures related to derivatives and securities lending arrangements[139]. Risk Management - The company is primarily exposed to interest rate risk, with net interest income and the fair value of financial instruments influenced by changes in interest rates[455]. - A 400 basis point increase in interest rates could lead to a decrease in economic value of equity (EVE) by $62,659 thousand, or 18.46%[459]. - The company is liability sensitive as of December 31, 2025, indicating a potential vulnerability to interest rate fluctuations[464]. - The bank utilizes derivative financial instruments, such as interest rate swaps, to manage interest rate risk and assist customers[465]. - The effective management of market risk is essential for achieving the company's strategic financial objectives, with interest rate risk being the most significant exposure[454]. - The company cannot predict the future impact of fiscal and monetary policies on its operations and financial condition[460]. Audit and Internal Controls - The company’s financial statements have been audited and present fairly its financial position as of December 31, 2025, in accordance with generally accepted accounting principles[468]. - MainStreet Bancshares, Inc. maintained effective internal control over financial reporting as of December 31, 2025, based on established criteria[479]. - The audit included consolidated financial statements for the years ended December 31, 2025, 2024, and 2023, with an unqualified opinion expressed[480]. - The audit procedures involved testing the design and operating effectiveness of internal controls related to the allowance for credit losses (ACLL)[478]. - The company evaluated the completeness and accuracy of internal data used for ACLL calculations, including a comparison to relevant peer groups[478]. - Significant judgments and assumptions used in the ACLL calculation were assessed for reasonableness[478]. - Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting[483]. - Limitations of internal control may prevent or detect misstatements, and effectiveness may vary over time due to changing conditions[484]. - The audit was conducted in accordance with PCAOB standards, ensuring a thorough evaluation of internal controls[482]. - The company has been audited by Yount, Hyde & Barbour, P.C. since 2008, indicating a long-standing relationship with the auditing firm[478]. - The audit report was dated March 13, 2026, reflecting the most recent assessment of the company's financial controls[485]. Community Engagement and ESG Initiatives - MainStreet Community Capital was established to support ESG initiatives in low-income communities, focusing on job creation and financial services[79]. - The company has converted all lighting to LED and implemented energy-efficient HVAC systems to reduce carbon emissions[75]. - The Bank received a "Satisfactory" rating in its most recent Community Reinvestment Act examination in 2025[148]. Compliance and Legal Obligations - Financial institutions must maintain anti-money laundering programs and comply with OFAC regulations to avoid serious legal and financial consequences[155]. - Federal laws limit the disclosure of non-public consumer information, requiring banks to provide privacy policies and allowing consumers to prevent certain disclosures[156]. - The FDIC issued a final rule in October 2022 increasing deposit insurance assessments for all financial institutions starting in the first quarterly assessment period of 2023[144]. - The Dodd-Frank Act requires financial institutions to make a reasonable determination of a borrower's ability to repay before issuing residential mortgage loans[152].

Financial Performance - The Company reported revenues of $222.652 million for the year ended December 31, 2025, compared to $208.010 million in 2024, representing a growth of approximately 7.9%[418]. - Net income for the year ended December 31, 2025, was $32.263 million, an increase of 28.5% from $25.116 million in 2024[418]. - Net interest income rose to $91,901 thousand in 2025, compared to $76,076 thousand in 2024, reflecting an increase of 20.7%[341]. - Comprehensive income for 2025 was $41,327 thousand, compared to $31,944 thousand in 2024, reflecting a growth of 29.4%[343]. - Net income for 2025 was $28,253,000, an increase of 18.5% compared to $23,868,000 in 2024[348]. Loan Portfolio - Total loans increased to $2.38 billion as of December 31, 2025, up from $1.84 billion in 2024, representing a growth of approximately 29.3%[439]. - The composition of loans includes $1.55 billion in commercial real estate, $459.5 million in residential real estate, and $150.9 million in consumer and other loans as of December 31, 2025[439]. - The company acquired loans totaling $412.7 million during the year ended December 31, 2025, reflecting a fair value discount of $12.5 million[442]. - The company has no loans rated as "doubtful" or "loss" as of December 31, 2025 and 2024, indicating strong credit quality management[448]. - The company tracks credit quality indicators including net charge-offs and nonperforming loans to monitor the loan portfolio[444]. Credit Losses and Allowance - The allowance for credit losses (ACL) reflects an estimate of lifetime expected credit losses, with specific methodologies including historical loss information and discounted cash flow models[461]. - Total allowance for credit losses on loans increased to $23,014,000 as of December 31, 2025, up from $18,980,000 in 2024, reflecting a provision for credit losses of $4,619,000[470]. - The allowance for credit losses is determined using a discounted cash flow methodology, adjusted for various risk factors[325]. - The Company utilizes a current expected credit loss (CECL) approach to estimate credit losses over the life of loans, replacing the incurred loss approach[369]. - The Company evaluates loans with elevated risk characteristics on an individual basis, while collectively pooling loans with similar risk characteristics for ACL estimation[371]. Internal Control and Audit - Management assessed the effectiveness of internal control over financial reporting as of December 31, 2025, concluding it is effective based on established criteria[318]. - The independent auditor expressed an unqualified opinion on the Company's internal control over financial reporting as of December 31, 2025[330]. - The independent auditor's report dated March 13, 2026, confirmed the effectiveness of the Company's internal control over financial reporting[321]. - The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting[335]. - The Company’s internal control evaluation included a review of documentation, design evaluations, and tests of effectiveness[317]. Assets and Liabilities - Total assets increased to $3,735,401 thousand in 2025, up from $3,109,782 thousand in 2024, representing a growth of 20.1%[339]. - Total liabilities increased to $3,359,481 thousand in 2025, up from $2,831,107 thousand in 2024, a growth of 18.6%[339]. - Cash and cash equivalents at the end of the period rose to $257,640,000 in 2025 from $231,034,000 in 2024, an increase of 11.5%[349]. - The total amount of jumbo certificates of deposit increased to $239.2 million in 2025 from $185.2 million in 2024, marking a growth of 29.2%[488]. - The Company had total borrowings of $258,104,000 as of December 31, 2025, compared to $248,039,000 in 2024, reflecting an increase of 4.3%[499]. Acquisitions - The Company acquired The Ellerbee Agency for $3.5 million, which included a customer relationship intangible of $1.4 million and $1.9 million in goodwill, expanding its insurance footprint into two new locations[413]. - The acquisition of TC Federal Bancshares, Inc. was completed on December 1, 2025, with a total consideration of $81.280 million, including cash and stock[414]. - Goodwill of $13.0 million was recorded from the TCBC acquisition, which is not expected to be deductible for income tax purposes[415]. - The fair value of assets acquired from TCBC was estimated at $555.191 million, while the fair value of liabilities assumed was $486.913 million, resulting in net assets acquired of $68.278 million[420]. - The Company recorded a core deposit intangible of $4.6 million as part of the TCBC acquisition, amortized over the average remaining life of the acquired customer deposits[426]. Securities and Investments - Total available-for-sale securities amounted to $383.8 million in 2025, up from $366.0 million in 2024[359]. - Held-to-maturity securities decreased to $386.6 million in 2025 from $430.1 million in 2024[360]. - The total amortized cost of available-for-sale securities is $412,395,000, with a fair value of $383,817,000, reflecting unrealized losses of $29,515,000[428]. - The total amortized cost of held-to-maturity securities is $386,618,000, with a fair value of $354,290,000, indicating unrealized losses of $32,404,000[429]. - The allowance for credit losses on investment securities was determined to be de minimis due to high credit quality, with no allowance recorded as of December 31, 2025 or 2024[437]. Taxation - The total tax provision from continuing operations for 2025 was $6,882,000, with a current tax provision of $4,818,000 and a deferred tax provision of $2,064,000[482]. - The Company reported cash taxes paid of $4,436,000 for the year ended December 31, 2025, including $4,210,000 in federal taxes[480]. - The net deferred tax assets decreased to $19,582,000 in 2025 from $21,891,000 in 2024, a decline of approximately 10.5%[484]. - The income tax expense for the year ended December 31, 2024, was $5,699,000, reflecting a decrease from the tax at the U.S. statutory rate of $6,209,000 due to various adjustments[484]. Operating Leases - The Company adopted ASU No. 2016-2 on January 1, 2019, affecting the accounting treatment for operating leases[510]. - All leases are classified as operating leases, primarily for real estate, with terms extending through 2040[511]. - The Company recognized operating lease arrangements on the consolidated balance sheet as right-of-use assets and corresponding lease liabilities[511]. - The Company recognized lease liabilities and right-of-use assets for operating leases, with lease payments discounted using the incremental borrowing rate[382]. - The total cost of premises and equipment was $73,115,000 in 2025, with accumulated depreciation of $36,070,000, resulting in a net value of $37,045,000[475].

Financial Performance - The company reported a significant increase in revenue, achieving $X billion, representing a Y% growth compared to the previous year[1204] - Adjusted gross profit for 2025 was £7,193 million, up from £7,099 million in 2024, reflecting a year-on-year increase of 1.3%[1226] - Adjusted operating profit for 2025 reached £2,526 million, compared to £2,500 million in 2024, indicating a slight increase of 1.0%[1226] - The profit attributable to shareholders for 2025 was £1,697 million, an increase from £1,638 million in 2024, representing a growth of 3.6%[1227] - The diluted earnings per share for 2025 was 18.8 pence, up from 17.9 pence in 2024, marking a year-on-year increase of 5.0%[1227] - Free cash flow for 2025 was reported at £1.913 billion, slightly down from £1.944 billion in 2024[1249] - Adjusted EBITDA for 2025 was £2.838 billion, reflecting an increase from £2.805 billion in 2024[1245] - Haleon reported a revenue increase of 8% year-over-year, reaching £3.5 billion for the quarter[1254] Market Expansion - The company is expanding its market presence in E regions, aiming for a market share increase of F% by the end of the next fiscal year[1204] - New product launches are expected to contribute an additional $D million in revenue, with a focus on innovative solutions in the market[1204] - Haleon plans to expand its market presence in the Asia Pacific region, targeting a 15% increase in market share by 2027[1254] - The company has successfully completed the acquisition of a local brand in Latin America, expected to contribute an additional £50 million in annual revenue[1254] Strategic Investments - Strategic acquisitions are planned to enhance product offerings, with an estimated investment of $G billion allocated for this purpose[1204] - The company is investing $H million in R&D for new technologies aimed at improving operational efficiency and product quality[1204] - The company is investing £200 million in research and development for innovative health solutions over the next three years[1254] Sustainability Initiatives - The company has set a target to reduce its carbon footprint by I% over the next five years, aligning with sustainability goals[1206] - Haleon is focusing on sustainability, with 75% of its packaging now being recyclable or reusable[1254] - The company has set a target to reduce greenhouse gas emissions by 30% by 2030, aligning with global sustainability goals[1254] User Engagement - User data showed an increase in active users to Z million, reflecting a growth rate of A% year-over-year[1204] - The company reported a 5% increase in active users of its digital health platforms, reaching 1.2 million users[1254] Operational Challenges - The company anticipates challenges in the supply chain, which may impact production timelines and costs, with potential implications for overall profitability[1211] - Haleon is implementing a new supply chain strategy aimed at reducing costs by 10% over the next two years[1254] Profitability Metrics - The adjusted operating profit margin for North America in 2025 was 24.5%, a decrease of 20 basis points from 24.7% in 2024[1228] - The adjusted operating profit margin for EMEA & LatAm improved to 23.7% in 2025, up 90 basis points from 22.8% in 2024[1228] - Revenue growth for 2025 compared to 2024 showed a decline of 1.8% overall, with North America down 4.4% and EMEA & LatAm down 0.8%[1240] - Organic revenue growth for 2025 was 3.0%, with APAC leading at 5.2% and North America slightly declining at -0.4%[1240] - Adjusted operating profit growth for 2025 was 1.0%, with North America experiencing a decline of 5.3% while EMEA & LatAm grew by 3.4%[1240] - The effect of exchange rates contributed positively to revenue growth, with a 2.8% overall impact for 2025[1240] - The company reported an operating profit growth of 9.3% for the total corporate segment in 2025[1240] - Organic operating profit growth for 2025 was 10.5%, with APAC showing the highest growth at 13.1%[1240] - The gross profit growth for 2025 was 3.8%, with adjusted gross profit growth at 1.3%[1242] Currency Impact - The average USD to GBP exchange rate for 2025 was 1.31, compared to 1.28 in 2024, indicating a depreciation of the Pound against the Dollar[1230] - The Group's financial results are reported in Pound Sterling, but constant currency measures are used to neutralize foreign exchange impacts for better year-on-year comparisons[1230] - The Group's adjusted results exclude significant items such as net amortisation and impairment of intangible assets, restructuring costs, and transaction-related costs, which affect comparability[1220] - The Group's organic revenue growth measures exclude the impact of divestments and acquisitions, providing a clearer view of underlying performance[1231]

Revenue Performance - Fiscal Year 2025 total revenue increased by 3.5% to $4.96 billion compared to $4.79 billion in 2024[8] - Fourth Quarter 2025 total revenue was $1.30 billion, a 5.0% increase from $1.23 billion in the same period of 2024[6] - Comparable store sales excluding fuel for Fiscal Year 2025 increased by 2.1% year-over-year and 4.0% on a two-year stacked basis[8] - Fourth Quarter comparable store sales excluding fuel increased by 2.5% year-over-year and 3.6% on a two-year stacked basis[6][16] Net Income and Earnings - Fourth Quarter net income decreased by 5.1% to $31.96 million compared to $33.70 million in 2024[7] - Fiscal Year 2025 net income was $93.69 million, down 11.6% from $106.02 million in 2024[9] - Fourth Quarter earnings per share were $1.24, slightly down from $1.25 per share in 2024[7] E-commerce and Store Developments - The Company achieved a 21% increase in e-commerce sales during the year[3] - Five new store openings and seven major remodels were completed, supported by significant capital expenditures[3] Dividends - A quarterly cash dividend of $0.34 per share was declared, payable on March 3, 2026[10]

Revenue Growth - Total revenue for 2023 reached KZT 1,913,490 million, with projections of KZT 2,532,156 million for 2024 and KZT 4,046,074 million for 2025, indicating a growth of 32.3% from 2023 to 2024 and 59.7% from 2024 to 2025[4]. - Net income for 2023 was KZT 848,770 million, expected to increase to KZT 1,056,834 million in 2024 and KZT 1,067,707 million in 2025, reflecting a growth of 24.5% year-over-year in 2024 and a marginal increase of 1.0% in 2025[4]. - The company reported net fee revenue of KZT 987,967 million in 2023, projected to rise to KZT 1,275,125 million in 2024 and KZT 1,598,351 million in 2025, representing a growth of 29.1% in 2024 and 25.4% in 2025[4]. - Interest revenue is expected to grow from KZT 833,516 million in 2023 to KZT 1,082,668 million in 2024 and KZT 1,579,346 million in 2025, marking an increase of 29.9% in 2024 and 46.0% in 2025[4]. - Retail revenue is anticipated to increase significantly from KZT 68,807 million in 2023 to KZT 850,127 million in 2025, marking a growth rate of 1,136.5%[140]. - Total fee and retail revenue is projected to grow from KZT 1,096,912 million in 2023 to KZT 2,513,568 million in 2025, representing a compound annual growth rate (CAGR) of approximately 61.5%[143]. Asset and Equity Growth - Total assets increased from KZT 8,377,101 million in 2024 to KZT 11,081,748 million in 2025, indicating a growth of 32.3%[8]. - Total equity as of 31 December 2025 was KZT 2,601,577 million, reflecting an increase from KZT 1,572,861 million in 2024[11]. - The company’s cash and cash equivalents increased from KZT 619,470 million in 2024 to KZT 903,143 million in 2025, reflecting a growth of 45.8%[8]. - The total cash and cash equivalents increased significantly from KZT 619,470 million in 2024 to KZT 903,143 million in 2025, representing a growth of 45.8%[171]. - The total net book value of property, equipment, and intangible assets reached KZT 714,361 million, up from KZT 269,289 million in 2024, reflecting a significant increase[185]. Expenses and Costs - The company plans to continue expanding its market presence and investing in technology and product development, with expenses in this area projected to rise from KZT 88,657 million in 2023 to KZT 208,580 million in 2025[4]. - Total costs and operating expenses are expected to escalate from KZT 891,486 million in 2023 to KZT 2,714,156 million in 2025, indicating a CAGR of approximately 78.5%[151]. - Interest expenses and fees are projected to increase from KZT 478,010 million in 2023 to KZT 908,698 million in 2025, reflecting a growth of 90.0%[157]. - Share-based compensation expenses are expected to decrease from KZT 20,859 million in 2023 to KZT 15,476 million in 2025, a reduction of approximately 26.0%[158]. Financial Performance and Ratios - The earnings per share (EPS) is expected to grow from KZT 4,431 in 2023 to KZT 5,477 in 2024 and KZT 5,631 in 2025, indicating a year-over-year increase of 23.6% in 2024 and 2.8% in 2025[4]. - Net income attributable to shareholders increased from KZT 841,351 million in 2023 to KZT 1,073,177 million in 2025, reflecting a growth of 27.7%[170]. - The net income is expected to grow from KZT 848,770 million in 2023 to KZT 1,067,707 million in 2025, reflecting a growth of 25.8%[145]. Acquisitions and Market Expansion - The acquisition of a 65.41% share in "D-MARKET Electronic Services & Trading" (Hepsiburada) was completed for approximately USD 1,127 million, with an additional 10.55% acquired for USD 66 million[19]. - The company expanded its market presence by acquiring 39.758% of Kolesa JSC, allowing it to control approximately 50.76% of the voting rights in Kolesa Group[18]. - Non-current assets in Türkiye are projected to reach KZT 347,867 million by the end of 2025, indicating a significant investment in market expansion[149]. Financial Instruments and Risk Management - The Group measures financial assets and liabilities at fair value or amortized cost, depending on the business model and cash flow characteristics[78][82]. - The Group enters into various derivative financial instruments to manage exposure to interest rate and foreign exchange risks, classified as held for trading[83]. - Expected credit loss (ECL) is measured based on the probability-weighted present value of future cash shortfalls, considering factors like exposure at default and loss given default[84][85]. - Significant increases in credit risk are assessed on both individual and portfolio bases, with criteria monitored periodically[86][87]. Compliance and Accounting Policies - The company has a consolidated financial statement prepared in Kazakhstani tenge, with a focus on historical cost accounting and compliance with IFRS standards[25][31]. - The company applies IAS 29 for its Turkish operations, adjusting for inflation and translating financial results into Kazakhstani tenge[39]. - The Group conducts annual impairment tests on intangible assets with indefinite useful lives to ensure they continue to generate net cash inflows[54]. Provisions and Allowances - As of December 31, 2023, the total loss allowance for financial assets is KZT 249,644 million, with KZT 166,042 million in Stage 3 loans[161]. - The allowance for impairment losses on loans to customers increased from KZT 295,843 million in 2024 to KZT 371,764 million in 2025, a rise of 25.6%[182]. - The total effect on the consolidated statements of profit or loss for 2025 was KZT 161,651 million[163].

Financial Performance - Net interest income for 2025 was $78.324 million, an increase of 26% from $62.191 million in 2024[92]. - Net income for 2025 was $27.755 million, compared to a loss of $0.160 million in 2024, marking a significant turnaround[92]. - Total other income for the year ended December 31, 2025, was $9,617,000, compared to a loss of $11,151,000 in the prior year, marking an increase of $20,768,000[141]. - Total other income rose to $9,617,000 in 2025, a significant increase of $20,768,000 compared to a loss of $11,151,000 in 2024, primarily due to a decrease in net realized losses on sales of securities[148]. - The efficiency ratio improved to 58.2% in 2025 from 68.5% in 2024, indicating better cost management relative to income[150]. - Income tax expense for 2025 was $7,264,000, resulting in an effective tax rate of 20.7%, compared to an income tax benefit of $98,000 and a rate of 38.0% in 2024[152]. Asset and Loan Growth - Total assets increased to $2.425 billion in 2025, up from $2.317 billion in 2024, driven by a $139.8 million increase in loans receivable[93]. - Loans receivable reached $1.853 billion in 2025, a rise of 8.1% from $1.714 billion in 2024, with notable increases in consumer, commercial real estate, and construction loans[94]. - Total deposits rose to $2.079 billion in 2025, an increase of 11.8% from $1.859 billion in 2024[92]. - Total deposits as of December 31, 2025, were $2.079 billion, an increase of $219.5 million from December 31, 2024[136]. - The company maintained established lines of credit totaling $168.8 million, with $14.7 million outstanding as of December 31, 2025[175]. Credit Quality and Losses - Provision for credit losses decreased to $1.773 million in 2025 from $2.673 million in 2024, reflecting improved credit quality[92]. - The allowance for credit losses to total loans ratio was 1.07% in 2025, down from 1.16% in 2024, indicating improved asset quality[92]. - Net charge-offs for 2025 totaled $1,890,000, or 0.11% of average loans, compared to $1,671,000, or 0.10% in 2024[121]. - Non-performing loans totaled $6,339,000 as of December 31, 2025, a decrease from $7,874,000 in 2024[125]. - The company recognized a provision expense of $1,929,000 for credit losses in 2025, down from $2,546,000 in 2024[121]. Securities and Investments - The securities portfolio was valued at $408.8 million, with unrealized losses of $21.9 million included in accumulated other comprehensive income[126]. - The average life of the securities portfolio was 6.0 years as of December 31, 2025[127]. - The company held 189 investment securities in a loss position as of December 31, 2025, with a combined unrealized loss of $30.7 million[130]. - The repositioning of the available-for-sale debt securities portfolio in December 2024 involved the sale of securities with an amortized cost of approximately $175 million, resulting in a pre-tax loss of $20 million[131]. - The yield on securities increased by 123 basis points in 2025, primarily due to the repositioning of the portfolio[145]. Dividends and Equity - Cash dividends paid increased to $11.489 million in 2025, up from $9.719 million in 2024, with a dividend payout ratio of 41.39%[92]. - Total stockholders' equity increased to $242.2 million as of December 31, 2025, up from $213.5 million in 2024, driven by earnings retention and an increase in accumulated other comprehensive income[153]. Interest Rates and Risk Management - Interest expense for the year ended December 31, 2025, was $48,204,000, with an average cost of interest-bearing liabilities of 2.81%[146]. - A 200-basis point increase in interest rates is projected to decrease net interest income by 4.4% in year 1 and increase it by 0.3% in year 2[169]. - Interest rate risk is considered the most significant market risk, impacting net income due to fluctuations in interest rates[162]. - The company’s asset and liability management aims to maintain a strong, stable net interest margin and adequate liquidity[163].