Financial Performance - Total revenues for Q3 2025 increased by $12 million, or 0.9%, compared to Q3 2024, and year-to-date revenues increased by $255 million, or 6.0%[95] - Net income for Q3 2025 was $163 million, a 94.0% increase from $84 million in Q3 2024, while year-to-date net income rose to $639 million, up 6.9% from $598 million[93] - Year-to-date 2025 comparable hotel RevPAR improved by 3.5%, driven by strong leisure transient demand and higher average rates[100] - Year-to-date revenues for 2025 reached $4,511 million, compared to $4,388 million for the same period in 2024, marking a 2.8% increase[212] - For the quarter ended September 30, 2025, net income was $163 million, compared to $84 million for the same period in 2024, representing a 94% increase[193] - EBITDA for the quarter was $428 million, up from $346 million in the prior year, reflecting a 24% growth[193] - Year-to-date comparable hotel EBITDA was $1,283 million, up from $1,258 million in 2024, indicating a growth of 2%[212] Revenue Metrics - Comparable hotel RevPAR increased by 0.2% for Q3 2025 and 3.5% year-to-date, driven by higher room rates and strong transient demand[95] - Total other revenues increased by 9.3% for Q3 2025, reflecting growth from the 2024 Acquisitions and increased ancillary revenues[118] - Total RevPAR for international locations increased by 12.5% to $206.87[134] - The average RevPAR for the company’s properties was $335.42, reflecting a 0.8% increase from the previous year[134] - Revenue per available room (RevPAR) increased to $229.95, reflecting a 3.5% growth compared to the prior year[137] - Total revenue per available room (Total RevPAR) reached $383.54, marking a 3.7% increase year-over-year[137] Expenses and Margins - Operating profit margin under GAAP for Q3 2025 was 7.6%, down 260 basis points from 10.2% in Q3 2024, primarily due to a decrease in net gains on insurance settlements[98] - Comparable hotel EBITDA margin was 23.9% for Q3 2025, a decline of 50 basis points compared to Q3 2024, affected by increased wage expenses[98] - Total property-level operating expenses for Q3 2025 were $1,208 million, a 1.7% increase from $1,188 million in Q3 2024[119] - Year-to-date property-level operating expenses reached $3,789 million, reflecting a 6.0% increase from $3,573 million in the previous year[119] - Rooms expenses increased by $6 million (2.8%) for Q3 2025 and $48 million (7.6%) year-to-date, primarily due to higher wage rates[121] - Food and beverage expenses rose by $11 million (4.1%) for Q3 2025 and $66 million (7.8%) year-to-date, with costs as a percentage of revenues increasing year over year[122] Market Performance - The Atlanta market saw a 20.1% increase in comparable hotel Total RevPAR for Q3 2025, attributed to the completion of planned renovations[97] - The company experienced a decline in group demand, which offset the strength in transient rates during Q3 2025[95] - Year-to-date 2025, comparable hotel Total RevPAR increased by 3.7%, with strong performances in Maui and Oahu markets[97] - For Q4 2025, the company anticipates continued softness in group bookings due to economic uncertainties, with U.S. GDP growth expectations revised to 1.9%[101] Acquisitions and Dispositions - The 2024 acquisitions contributed positively to revenue growth, while the 2025 dispositions had a partial offsetting effect[95] - Significant dispositions included the sale of the Washington Marriott at Metro Center for $177 million and the Westin Cincinnati for $60 million, totaling $213 million in net proceeds[162] - The company recorded a gain on the sale of the Washington Marriott at Metro Center amounting to $122 million[105] Debt and Liquidity - Cash and cash equivalents stood at $539 million, with an additional $205 million in FF&E escrow reserves as of September 30, 2025[153] - The company has $1.5 billion available under the revolver portion of its credit facility, providing significant liquidity for future growth[153] - The next significant debt maturity is $400 million of senior notes due in February 2026, with sufficient liquidity to repay at maturity[152] - As of September 30, 2025, total debt was $5.1 billion with a weighted average interest rate of 4.9% and 80% of the debt at a fixed rate[168] Shareholder Returns - A regular quarterly cash dividend of $0.20 per share was announced on September 11, 2025, and paid on October 15, 2025[175] - There were no share repurchases during Q3 2025, with $480 million available for repurchase under the program as of September 30, 2025[155] - Host Inc. repurchased 13.1 million shares of common stock for $205 million year-to-date in 2025[166] Economic Outlook - The company anticipates continued challenges from economic uncertainties, including inflation and geopolitical developments, which may impact future performance[90] - The construction pipeline is expected to remain modest until macroeconomic uncertainty decreases and interest rates decline[102] - The company expects comparable hotel RevPAR growth for the full year 2025 to be approximately 3.0%[103] Foreign Currency Exposure - The company has operations in Brazil and Canada, exposing it to currency exchange risks[217] - In Q3 2025, two foreign currency forward purchase contracts matured with a total notional amount of CAD 99 million ($73 million)[217] - To replace the maturing contracts, the company entered into two new foreign currency forward purchase contracts with a total notional amount of CAD 99 million ($73 million)[217]

Financial Performance - Net sales for Q3 2025 reached $7,360,284, a 5.6% increase from $6,969,921 in Q3 2024[12] - Gross profit for Q3 2025 was $1,329,496, compared to $694,987 in Q3 2024, reflecting a significant improvement[12] - Operating income for Q3 2025 was $64,570, a turnaround from an operating loss of $823,571 in Q3 2024[12] - Net income for Q3 2025 was $67,572, compared to a net loss of $1,446,621 in Q3 2024[12] - For the nine months ended September 30, 2025, total sales to external customers were $21,903,997, up from $22,882,579 in the same period of 2024, indicating a decrease of about 4.3%[52] - The gross profit for the fastener segment was $878,177 for the three months ended September 30, 2025, compared to $695,342 for the same period in 2024, reflecting an increase of approximately 26.3%[52] - The operating income for the Company was $64,570 for the three months ended September 30, 2025, compared to a loss of $823,571 in the same period in 2024, showing a significant improvement[52] - Net income for the three months ended September 30, 2025, was $67,572, or $0.07 per share, compared to a net loss of $1,446,621, or $1.50 per share for the same period in 2024, marking an increase of $1,514,193, or 104.7%[67] Assets and Liabilities - Total current assets increased to $13,537,511 as of September 30, 2025, up from $12,591,065 at the end of 2024[9] - Total assets rose to $24,028,250 as of September 30, 2025, compared to $23,370,174 at the end of 2024[9] - Cash and cash equivalents decreased to $1,682,919 from $1,922,679 at the end of 2024[9] - Total liabilities increased to $4,009,136 as of September 30, 2025, compared to $3,337,722 at the end of 2024[9] - The total assets of the Company as of September 30, 2025, were $24,028,250, down from $26,391,515 as of September 30, 2024, reflecting a decrease of approximately 8.9%[53] Cash Flow and Dividends - Cash flows from operating activities showed a net cash used of $1,344,371 for the nine months ended September 30, 2025[18] - Cash dividends declared per share were $0.03 for Q3 2025, down from $0.10 in Q3 2024[12] Inventory and Accrued Liabilities - As of September 30, 2025, the Company's net inventories amounted to $6,349,195, a decrease from $6,496,170 as of December 31, 2024, reflecting a valuation allowance of $459,088[45] - The Company recorded accrued liabilities for warranty claims of $880,000 as of September 30, 2025, down from $1,057,000 as of December 31, 2024[36] - The Company’s total accrued liabilities for customer settlements increased from $177,000 in December 31, 2024, to $220,000 as of September 30, 2025[46] Tax and NOL Carryforwards - The Company's effective tax rate for the nine months ended September 30, 2025, was zero, compared to (32.0)% for the same period in 2024[38] - The Company has federal income tax NOL carryforwards of $9,456,000 and state NOL carryforwards of $3,698,000 as of December 31, 2024[42] Segment Performance - Fastener segment sales increased by $506,633, or 8.5%, to $6,433,949 for Q3 2025 compared to Q3 2024, but declined by $570,584, or 2.9%, to $18,990,136 for the nine months ended September 30, 2025 compared to the same period in 2024[69] - Automotive sector sales for Q3 2025 rose by $650,112, or 18.2%, to $4,228,502, but decreased by $1,173,857, or 9.0%, to $11,876,239 for the nine months ended September 30, 2025 due to a slowdown in North American vehicle production[69] - Non-automotive fastener sales decreased by $143,479, or 6.1%, to $2,205,447 for Q3 2025, while increasing by $603,273, or 9.3%, to $7,113,897 for the nine months ended September 30, 2025[69] - Assembly equipment segment sales fell by $116,270, or 11.2%, to $926,335 for Q3 2025 and by $407,998, or 12.3%, to $2,913,861 for the nine months ended September 30, 2025[70] Expenses and Cost Management - Selling and administrative expenses decreased by $253,632, or 16.7%, to $1,264,926 for Q3 2025, and by $229,323, or 5.1%, to $4,244,987 for the nine months ended September 30, 2025[71] - The Company’s lease costs for the three months ended September 30, 2025, were $28,330, compared to $28,200 for the same period in 2024, a slight increase of 0.5%[48] - The expected annual minimum lease payments total $530,790, with a present value lease liability of $448,344 as of September 30, 2025[50] - The Company’s capital expenditures for the three months ended September 30, 2025, were $145,915, compared to $310,732 for the same period in 2024, indicating a decrease of approximately 53%[52] Strategic Actions and Outlook - The company has developed strategic actions to improve liquidity, including consolidating operations and enhancing the sales team[61] - The company recognizes ongoing industry headwinds, including inflation and supply chain complexities, which may affect near-term financial performance[68] - The outlook for the remainder of 2025 indicates continued challenges in the economic environment, with efforts to improve sales and operational efficiency amid uncertainties from tariffs and market factors[79]

Financial Performance - Net income for the three months ended September 30, 2025, was $28,263 thousand, a decrease of 19.4% compared to $35,057 thousand for the same period in 2024[19] - Net income for the nine months ended September 30, 2025, was $88,366,000, a decrease from $106,936,000 in the same period of 2024, representing a decline of approximately 17%[26] - Basic earnings per share for the three months ended September 30, 2025, were $1.12, down from $1.31 in the same period of 2024, representing a decrease of 14.5%[19] - Total comprehensive income for the three months ended September 30, 2025, was $45,097 thousand, a decrease of 56.9% compared to $104,704 thousand for the same period in 2024[21] - Total interest and loan fee income for the nine months ended September 30, 2025, was $174,192 thousand, down 15.3% from $205,612 thousand in the same period of 2024[19] - Noninterest income for the three months ended September 30, 2025, was $10,151 thousand, a decrease of 6.5% compared to $11,925 thousand for the same period in 2024[19] - Total noninterest expense for the nine months ended September 30, 2025, was $76,456 thousand, a decrease of 2.7% from $78,538 thousand in the same period in 2024[19] Assets and Liabilities - Total assets decreased to $5,914,438 thousand as of September 30, 2025, down from $6,076,274 thousand at December 31, 2024, representing a decline of approximately 2.68%[17] - Total deposits decreased to $4,793,179 thousand as of September 30, 2025, down from $5,011,850 thousand at December 31, 2024, reflecting a decline of approximately 4.36%[17] - Total cash and due from banks at the end of the period was $659,268,000, compared to $502,945,000 at the end of the previous year, indicating an increase of about 31%[26] - The carrying value of the Company's debt securities pledged was $1,858,958 thousand, down from $2,049,954 thousand as of December 31, 2024, indicating a decrease of approximately 9.3%[62] - The balance of common stock outstanding decreased from 26,708,000 shares on December 31, 2024, to 25,107,000 shares on September 30, 2025, a reduction of approximately 6%[23] Credit Losses and Allowances - The allowance for credit losses on loans was $11,859 thousand as of September 30, 2025, compared to $14,780 thousand at December 31, 2024, indicating a reduction of approximately 19.5%[17] - The total allowance for credit losses at the end of the period was $11,859 thousand, with a beginning balance of $13,787 thousand, indicating a reduction of approximately 14.0%[70] - The allowance for credit losses for commercial real estate loans decreased due to lower loan balances, resulting in a reduction in estimated credit losses over the remaining life of such loans[73] - The Company maintains a separate allowance for credit losses from off-balance sheet credit exposures, which includes letters of credit and unfunded loan commitments[48] Dividends - The company declared dividends of $0.46 per share for the three months ended September 30, 2025, compared to $0.44 per share in the same period of 2024, reflecting an increase of 4.5%[19] - The company paid dividends of $35,473,000 for the nine months ended September 30, 2025, consistent with the previous year's payment of $35,216,000[26] Loans and Credit Quality - The total outstanding loans decreased to $741,579 thousand as of September 30, 2025, from $820,300 thousand as of December 31, 2024, reflecting a decline of approximately 9.6%[70] - The total loans reported as past due (30-59 days) amounted to $2,463 thousand as of September 30, 2025[75] - The company’s Loan Review Department performs continuous evaluations of loans throughout the year to assess credit risk[74] - The credit risk profile showed total loans of $741,579 thousand, with $728,110 thousand classified as "pass" grade[75] - The company did not make any loan modifications for borrowers experiencing financial difficulty during the three and nine months ended September 30, 2025[77] Debt Securities - The Company classifies its debt securities into three categories: trading, available for sale, and held to maturity, with held to maturity securities recorded at cost adjusted for amortization[31] - As of September 30, 2025, total debt securities available for sale amounted to $3,447,173, with a fair value of $3,305,324, reflecting unrealized losses of $143,218[55] - The total debt securities held to maturity included $740,545 in corporate securities, with a fair value of $733,797, showing a decline due to market conditions[55] - The company does not intend to sell any debt securities available for sale with material unrealized losses, indicating a long-term holding strategy[59] Market Conditions and Risks - The company continues to evaluate the impacts of inflation and monetary policy on its operations, highlighting ongoing risks in the banking industry[29] - The company anticipates that future declines in fair values of debt securities could occur if market conditions worsen, including rising interest rates and deteriorating economic conditions[61] - The company continuously monitors interest rate changes and credit ratings, which are critical factors affecting the fair value of its debt securities[61] Other Assets and Liabilities - Total other assets decreased from $280,885 thousand at December 31, 2024, to $246,074 thousand at September 30, 2025[90] - Goodwill remained unchanged at $121,673 thousand as of September 30, 2025, with no impairment recognized during the reporting periods[89] - The Company had access to borrowing from the Federal Reserve up to $647,776 thousand based on collateral pledged as of September 30, 2025[102]

Financial Performance - For the three months ended September 30, 2025, net income was $1,099,000, a decrease of 29.4% compared to $1,557,000 for the same period in 2024[13] - Net income for the six months ended September 30, 2025, was $2,324,000, compared to $2,523,000 for the same period in 2024, representing a decrease of 7.9%[17] - The company reported a basic earnings per share of $0.05 for the three months ended September 30, 2025, down from $0.07 in 2024[13] - For the six months ended September 30, 2025, the basic EPS was $0.11, compared to $0.12 for the same period in 2024, reflecting a decrease of 8.33%[32] - Comprehensive income for the three months ended September 30, 2025, was $2,556,000, compared to $5,261,000 in 2024, indicating a significant decline[14] Income and Expenses - Total interest and dividend income for the six months ended September 30, 2025, was $30,747,000, an increase of 4.8% from $29,341,000 in 2024[13] - Non-interest income for the three months ended September 30, 2025, was $3,840,000, slightly down from $3,841,000 in 2024[13] - Total non-interest expense increased to $12,226,000 for the three months ended September 30, 2025, up from $10,701,000 in 2024, reflecting a rise of 14.2%[13] - Cash dividends paid on common stock for the six months ended September 30, 2025, totaled $838,000, down from $1,688,000 in 2024, a reduction of 50.3%[17] - Stock-based compensation expense for the six months ended September 30, 2025, was $318,000, compared to $52,000 in 2024, indicating a significant increase of 513.5%[17] Shareholders' Equity - Total shareholders' equity as of September 30, 2025, was $163,537,000, an increase from $160,014,000 as of March 31, 2025[12] - Total shareholders' equity as of September 30, 2025, was $163,537,000, up from $160,774,000 as of September 30, 2024, reflecting an increase of 1.1%[16] Cash Flow - Net cash provided by operating activities increased significantly to $16,058,000 for the six months ended September 30, 2025, compared to $6,200,000 in 2024, an increase of 158.1%[17] - Cash and cash equivalents at the end of the period increased to $32,809,000 from $30,960,000, marking an increase of 6.0%[17] Loans and Credit Losses - As of September 30, 2025, total loans receivable amounted to $1,070,191,000, an increase from $1,062,460,000 as of March 31, 2025[46] - The allowance for credit losses (ACL) for loans was $15,427,000 at September 30, 2025, compared to $15,374,000 at March 31, 2025[46] - The provision for credit losses was $0 for the six months ended September 30, 2025, compared to $100,000 in 2024[13] - Non-accrual loans totaled $4,288,000 as of September 30, 2025, with $776,000 classified as non-accrual and $3,512,000 past due[71] - The company had no loans modified related to borrowers experiencing financial difficulty during the six months ended September 30, 2025[50] Investment Securities - As of September 30, 2025, the total available for sale investment securities had a fair value of $118,447, down from an amortized cost of $132,621[33] - The total held to maturity investment securities had a fair value of $169,312, with an amortized cost of $192,759 as of September 30, 2025[36] - The total available for sale securities had an estimated fair value of $116,593,000 with unrealized losses of $(14,193,000) as of September 30, 2025[38] - The total held to maturity securities had an estimated fair value of $175,392,000 with unrealized losses of $(27,687,000) as of September 30, 2025[45] Borrowings and Debentures - FHLB advances decreased to $52,300,000 as of September 30, 2025, from $76,400,000 as of March 31, 2025, with a weighted average interest rate of 4.58%[77] - The total amount outstanding for junior subordinated debentures is $27,135,000, with a fair value of $19,758,000[95] - The company recorded interest expense on debentures, with Statutory Trust I having an initial rate of 5.88% and a current rate of 5.94%[82] Risk Management - The company considers its loan portfolio to have very little exposure to sub-prime mortgage loans[47] - The company monitors credit risk using a risk rating system for all commercial loans, with ratings ranging from 1 to 9[51] - The company’s ACL for loans is based on ongoing quarterly assessments of known and inherent risks in the loan portfolio, with regulatory agencies periodically reviewing the ACL[68]

Revenue and Sales Performance - Approximately 14% of net sales in 2024 were generated through first-fit sales to OEMs, while 86% were from the aftermarket, indicating a strong recurring revenue base [87]. - During the first nine months of 2025, aftermarket demand remained soft, and first-fit demand experienced a reduction due to depressed market conditions, expected to continue through 2025 [98]. - Net sales for the three months ended September 30, 2025, were $447.7 million, an increase of $44.0 million or 10.9% compared to $403.7 million for the same period in 2024 [105]. - For the nine months ended September 30, 2025, net sales were $1,317.7 million, an increase of $54.8 million or 4.3% compared to $1,262.9 million in 2024 [112]. Financial Performance - Gross margin increased to $129.4 million for the three months ended September 30, 2025, up $18.1 million or 16.3% from $111.3 million in 2024, with a gross margin percentage of 28.9% [106]. - Operating income rose to $81.9 million for the three months ended September 30, 2025, an increase of $18.7 million or 29.6% compared to $63.2 million in 2024 [104]. - Net income for the three months ended September 30, 2025, was $54.8 million, reflecting an increase of $11.0 million or 25.1% from $43.8 million in 2024 [104]. - Basic earnings per share increased to $0.67 for the three months ended September 30, 2025, up $0.14 or 26.4% from $0.53 in 2024 [104]. - Gross margin for the nine months ended September 30, 2025, was $370.9 million, an increase of $15.9 million or 4.5% from $355.0 million in 2024, maintaining a gross margin percentage of 28.1% [113]. - Interest expense decreased to $25.4 million for the nine months ended September 30, 2025, down $6.0 million or 19.1% from $31.4 million in 2024 [117]. - The effective tax rate for the nine months ended September 30, 2025, was 22.3%, an increase of 1.4 percentage points compared to 20.9% in 2024 [119]. - EBITDA for the nine months ended September 30, 2025, was $252.8 million, compared to $233.1 million for the same period in 2024, reflecting a year-over-year increase of 8.0% [139]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $268.3 million, up from $251.8 million in the same period of 2024, indicating a growth of 6.3% [139]. - Free cash flow for the nine months ended September 30, 2025, was $117.6 million, significantly higher than $46.8 million for the same period in 2024 [142]. - Adjusted earnings per share for the nine months ended September 30, 2025, increased to $2.04, compared to $1.92 for the same period in 2024 [140]. - Net income margin improved to 12.1% for the nine months ended September 30, 2025, compared to 11.5% for the same period in 2024 [139]. Expenses and Costs - The company incurred approximately $3.7 million in one-time expenses during the three months ended September 30, 2025, and approximately $15.5 million for the nine months ended September 30, 2025, primarily related to becoming a standalone public company [103]. - Logistics costs increased during the first nine months of 2025, primarily due to the transition to a standalone distribution network and the impact of tariffs [99]. - The company continues to evaluate opportunities to offset costs and mitigate the impact of evolving tariffs and policy changes on profitability [88]. - Capital expenditures for the nine months ended September 30, 2025, were $37.6 million, approximately 2.9% of net sales, compared to $38.6 million or 3.1% of net sales for the same period in 2024 [127]. - Dividends paid increased to $12.7 million in the first nine months of 2025, compared to $4.2 million in the same period of 2024 [129]. Debt and Financing - The company entered into a $1.0 billion credit agreement, which included a $600 million term loan facility and a $400 million revolving credit facility, with borrowings available post-IPO [92]. - As of September 30, 2025, the company had $577.5 million in outstanding borrowings on its $1.0 billion Credit Agreement, with $400 million available under the revolving credit facility [120]. - Total debt decreased to $577.5 million at September 30, 2025, from $592.5 million at December 31, 2024 [133]. - A 0.125% change in SOFR would result in an annual impact of $0.7 million on interest expense based on outstanding borrowings as of September 30, 2025 [147]. Currency and Market Risks - The depreciation of the U.S. dollar against certain foreign currencies had an unfavorable impact on the condensed consolidated results of operations in the first nine months of 2025 [102]. - Atmus is exposed to foreign currency exchange rate risks due to its international business presence, with a potential gain or loss in the fair value of outstanding foreign currency contracts estimated at approximately $9.0 million for a hypothetical 10% fluctuation [146]. Corporate Structure and Transition - The IPO was completed on May 30, 2023, with Cummins owning approximately 80.5% of the outstanding shares at that time [91]. - The company has incurred capital expenditures of approximately $9.5 million in 2025 related to the Separation, primarily for establishing functions previously co-mingled with Cummins [103]. - The transition services agreement with Cummins ended in September 2025, and no additional one-time expenses or capital expenditures are expected in 2025 or future periods [103].

Financial Performance - Net income for the nine months ended September 30, 2025, was $28.2 million, an increase of 50.8% compared to $18.7 million for the same period in 2024[165] - Basic and diluted earnings per share rose to $0.70 for the nine months ended September 30, 2025, compared to $0.45 for the same period in 2024, reflecting a 55.6% increase[165] - The return on average assets improved to 0.67% for the nine months ended September 30, 2025, compared to 0.43% for the same period in 2024[165] - The return on average stockholders' equity increased to 5.31% for the nine months ended September 30, 2025, up from 3.59% for the same period in 2024[165] - Net income increased to $28.2 million for the nine months ended September 30, 2025, compared to $18.7 million for the same period in 2024, reflecting a 50.8% year-over-year growth[180] - Net income for the quarter ended September 30, 2025, was $10.8 million, compared to $6.5 million for the same quarter in 2024[193] Asset and Liability Management - Total assets increased by $59.1 million, or 1.0%, to $5.73 billion at September 30, 2025, from $5.67 billion at December 31, 2024[166] - Total liabilities increased by $44.2 million, or 0.9%, to $5.01 billion at September 30, 2025, primarily due to a $213.7 million increase in borrowings[176] - Stockholders' equity increased by $14.9 million to $719.6 million at September 30, 2025, supported by net income and a decrease in accumulated other comprehensive loss[179] Loan Portfolio - Loans held-for-investment decreased by $121.9 million, or 3.0%, to $3.90 billion at September 30, 2025, primarily due to a decrease in multifamily real estate loans[170] - Multifamily loans decreased by $157.0 million, or 6.0%, to $2.44 billion at September 30, 2025, reflecting a strategic focus on managing concentration risk[170] - Home equity loans and lines of credit increased by $19.2 million, or 11.1%, to $193.3 million at September 30, 2025, driven by new originations and existing customers drawing down on their lines of credit[170] - Real estate loans accounted for 95.6% of the total loan portfolio, with multifamily loans at $2.44 billion (62.6%) and commercial mortgage loans at $894.5 million (22.9%) as of September 30, 2025[171] - Non-performing loans totaled $19.1 million at September 30, 2025, representing 0.49% of total loans, a slight decrease from 0.51% at December 31, 2024[205] Income and Expenses - Interest income rose by $7.3 million, or 4.1%, to $185.5 million for the nine months ended September 30, 2025, driven by a 25 basis point increase in yield on interest-earning assets[181] - Interest expense decreased by $8.6 million, or 9.2%, to $84.8 million for the nine months ended September 30, 2025, compared to $93.4 million for the same period in 2024[182] - Net interest income increased by $15.9 million, or 18.7%, to $100.7 million for the nine months ended September 30, 2025, primarily due to a 43 basis point increase in net interest margin to 2.50%[183] - Non-interest income increased by $2.5 million, or 25.0%, to $12.3 million for the nine months ended September 30, 2025, compared to $9.8 million for the same period in 2024[185] - Non-interest expense increased by $2.1 million, or 3.2%, to $67.8 million for the nine months ended September 30, 2025, compared to $65.7 million for the same period in 2024[186] Tax and Regulatory Compliance - The company recorded an income tax expense of $4.0 million for the quarter ended September 30, 2025, up from $2.4 million for the same quarter in 2024, with an effective tax rate of 27.3%[200] - Northfield Bank's CBLR was 12.64% as of September 30, 2025, exceeding the minimum requirement of 9.00%[223] Interest Rate Risk Management - As of September 30, 2025, a 400 basis point increase in interest rates would lead to a 17.72% decrease in estimated net portfolio value and an 11.67% decrease in net interest income for the first year[236] - The estimated present value of assets as of September 30, 2025, is $5,982,814 thousand, while the estimated present value of liabilities is $5,073,027 thousand, resulting in an estimated NPV of $909,787 thousand[235] - The NPV ratio at September 30, 2025, is 15.21%, indicating the company's ability to manage interest rate risk effectively[235] - The company complies with Board-approved policies regarding interest rate risk management, ensuring that projected net interest income does not decrease by more than 39% in the first year under a 400 basis point increase scenario[236] Funding and Liquidity - The Bank has the ability to obtain additional funding of approximately $1.67 billion from FHLBNY and FRBNY[216] - The Bank's liquidity management aims to ensure sufficient funds for financial commitments and new investments[213] - Estimated gross uninsured deposits at September 30, 2025, were $1.93 billion, with net uninsured deposits of approximately $944.6 million, or 23.8% of total deposits[218] Shareholder Actions - The Company repurchased 1.3 million shares of its common stock at an average price of $11.52 for a total of $15.0 million during the nine months ended September 30, 2025[179]

Revenue Performance - Total net revenues for Q3 2025 were $18,315,000, a decrease of $969,000, or 5.0%, compared to $19,284,000 in Q3 2024[80] - Total Casino revenue decreased by $954,000, or 9.7%, for Q3 2025, and by $2,174,000, or 7.3%, for the nine months ended September 30, 2025, compared to the same periods in 2024[82] - Total pari-mutuel revenue decreased by $91,000, or 2.7%, for Q3 2025, and by $522,000, or 7.4%, for the nine months ended September 30, 2025, compared to the same periods in 2024[84] - Food and beverage revenue increased by $405,000, or 13.1%, for Q3 2025, and by $269,000, or 3.9%, for the nine months ended September 30, 2025, compared to the same periods in 2024[85] Income and Expenses - Net income for Q3 2025 was $487,000, or $0.10 per share, compared to net income of $2,022,000, or $0.40 per share, for Q3 2024[95][96] - Adjusted EBITDA decreased by $467,000, or 14.2%, for Q3 2025, and by $2,275,000, or 25.6%, for the nine months ended September 30, 2025, compared to the same periods in 2024[98] - Purse expense decreased by $444,000, or 15.9%, for Q3 2025, primarily due to decreased Casino and pari-mutuel revenues[88] - Advertising and marketing costs increased by $124,000, or 18.6%, for Q3 2025, due to new Casino promotions[91] - Other loss, net, for Q3 2025 was $408,000, an increase of $445,000 compared to a loss of $853,000 for Q3 2024[93] Tax and Cash Flow - The effective tax rate for Q3 2025 was 24.3%, compared to 27.6% for Q3 2024[94] - Net cash provided by operating activities for the nine months ended September 30, 2025 was $9,004,000, despite a net loss of $139,000[102] - The company declared a cash dividend of $0.07 per share payable during the three months ended September 30, 2025[106] Assets and Financing - As of September 30, 2025, the company's cash, cash equivalents, and restricted cash balance was $16,990,000, an increase of 24.4% from $13,687,000 as of December 31, 2024[101] - The company recorded a TIF receivable of approximately $20,161,000 as of September 30, 2025, which includes $16,141,000 of principal and $4,020,000 of interest[112] - Net cash used in investing activities for the nine months ended September 30, 2025 was $4,655,000, primarily due to additions to land, buildings, and equipment of $3,675,000[104] - The company has a revolving credit line of up to $10,000,000, which was reduced to $5,000,000 as of January 31, 2024[100] - The company anticipates that unrestricted funds, along with amounts available under its revolving line of credit, will be sufficient for ongoing liquidity and capital resource requirements for at least the next twelve months[101] - The company may require additional financing for significant real estate development or strategic growth, potentially through joint ventures, debt, or equity financing[101] Other Financial Considerations - The company experienced an increase in payable to horsepersons of $1,158,000 for the nine months ended September 30, 2025, primarily due to the timing of the live racing season[102] - The company expects to spend the remaining $1,452,000 in tax increment financing over the next six months for the completion of the private redevelopment plan[101]

Sales Performance - Net product sales in Q3 2025 were $230,614, an increase of $6,723 or 3.0% compared to Q3 2024[51] - Domestic net product sales increased by 3.8% in Q3 2025, representing 92.3% of total consolidated net product sales[51] - Net earnings attributable to Tootsie Roll Industries, Inc. in Q3 2025 were $35,659, an increase of $2,815 or 8.6% from Q3 2024[65] Costs and Expenses - Product cost of goods sold in Q3 2025 was $152,741, an increase of $4,400 or 3.0% from Q3 2024[52] - Selling, marketing, and administrative expenses in Q3 2025 were $47,031, an increase of $5,206 or 12.4% from Q3 2024[55] - Current tariffs are estimated to have an adverse annual effect of approximately $6,900 on the Company's consolidated earnings from operations[78] Earnings and Taxation - Adjusted earnings from operations in Q3 2025 were $39,701, a decrease of $343 or 0.9% compared to Q3 2024[59] - Effective income tax rates increased to 26.7% in Q3 2025 from 22.6% in Q3 2024, primarily due to non-deductible deferred compensation[64] Cash Flow and Investments - Cash flows provided by operating activities were $57,288 and $70,102 for the nine months of 2025 and 2024, respectively, reflecting a decrease of $12,814[80] - Cash flows used in investing activities increased to $91,843 in nine months 2025 from $32,176 in 2024, primarily due to increased purchases of available-for-sale securities[81] Company Initiatives and Future Outlook - The Company is pursuing a plant expansion with total costs expected to be between $75,000 and $85,000 over the next five years, funded from cash flow from operations[81] - The Company is focused on recovering increases in input costs through price increases to restore margins[89] - The overall competitive environment in the Company's industry remains a significant factor influencing future performance[89] - Successful distribution and sell-through during key seasons, such as Halloween, are critical for the Company's financial results[89] Financial Position and Liabilities - The Company's current ratio was 2.8 to 1 at September 30, 2025, down from 3.8 to 1 at December 31, 2024[83] - The Company expects its withdrawal liability, if it withdrew in 2024, to be limited to twenty annual payments of $2,664, with a present value range of $31,262 to $37,654[73] Market Conditions and Risks - The availability of cocoa and chocolate at reasonable prices is a concern due to elevated and volatile market conditions[89] - The Company acknowledges that actual results may differ materially from forward-looking statements due to various risks and uncertainties[90] - The Company has no obligation to update forward-looking statements made in the report[90] Trust Fund Information - The Company funded $20,000 to a VEBA trust in 2023, with no contributions made during the nine months of 2025 or 2024[85] - The VEBA trust held aggregate cash and cash equivalents of $10,989, $13,926, and $16,345 at September 30, 2025, December 31, 2024, and September 30, 2024, respectively[85] - The assets in the VEBA trust primarily comprise cash and corporate bonds, categorized as Level 1 and Level 2 within the fair value hierarchy[85]

Financial Performance - Net income for the three months ended September 30, 2025, was $19,169 thousand, up from $11,423 thousand in 2024, indicating a significant increase of approximately 67.9%[16] - Basic earnings per share increased to $0.56 for the three months ended September 30, 2025, compared to $0.33 in 2024, representing a growth of approximately 69.7%[16] - Comprehensive income for the three months ended September 30, 2025, was $22,912 thousand, compared to $38,394 thousand in 2024, reflecting a decrease of approximately 40.0%[17] - Net income allocated to common shareholders for the three months ended September 30, 2025, was $19,169 thousand, an increase of 67.8% compared to $11,423 thousand in the same period in 2024[100] - Income before income taxes increased by $17.0 million to $52.9 million for the nine months ended September 30, 2025, compared to $35.9 million in 2024[172] Asset and Liability Management - Total assets decreased to $7,011,879 thousand as of September 30, 2025, from $7,106,278 thousand at December 31, 2024, representing a decline of approximately 1.33%[14] - Total liabilities decreased to $6,107,815 thousand as of September 30, 2025, from $6,242,751 thousand at December 31, 2024, a decline of about 2.16%[14] - Total stockholders' equity increased to $904,064 thousand as of September 30, 2025, up from $874,514 thousand a year earlier, reflecting a growth of 3.4%[19] - Cash and cash equivalents at the end of the period increased to $245,491 thousand as of September 30, 2025, from $175,572 thousand a year earlier[24] Deposits and Loans - Total deposits rose to $5,857,464 thousand as of September 30, 2025, compared to $5,684,613 thousand at December 31, 2024, marking an increase of about 3.04%[14] - Total loans originated and purchased for the nine months ended September 30, 2025, were $35,113 thousand, compared to a net outflow of $342,880 thousand in the same period of 2024[23] - Total loans receivable balance as of September 30, 2025, was $4,769,160,000, reflecting a conversion from revolving loans to non-revolving amortizing loans during the nine months ended September 30, 2025[61] - New loans funded declined to $410.2 million during the nine months ended September 30, 2025, compared to $445.3 million during the same period in 2024[178] Income and Expenses - Net interest income increased to $57,371 thousand for the three months ended September 30, 2025, compared to $52,958 thousand for the same period in 2024, reflecting a growth of about 8.3%[16] - Noninterest income for the three months ended September 30, 2025, was $8,325 thousand, compared to $1,837 thousand in 2024, showing a substantial increase of approximately 353.5%[16] - Noninterest expense increased by $2.3 million, primarily due to higher compensation and employee benefits[142] - Total interest expense decreased by $4.7 million, attributed mainly to lower borrowing costs, with a significant reduction in average borrowings from $452.4 million to $136.6 million[153] Credit Quality and Losses - The provision for credit losses decreased to $1,775 thousand for the three months ended September 30, 2025, from $2,439 thousand in 2024, a reduction of about 27.1%[16] - Nonaccrual loans totaled $17,612,000 as of September 30, 2025, with $15,227,000 classified as nonaccrual without allowance for credit losses (ACL)[63] - The allowance for credit losses (ACL) on loans increased by $2.6 million to $53.97 million at September 30, 2025, representing 1.13% of loans receivable[184] - The total gross charge-offs for the nine months ended September 30, 2025, were $1,308,000, compared to $3,395,000 for the same period in 2024, indicating a reduction in charge-offs[62] Regulatory and Compliance - The Company maintained a common equity Tier 1 capital ratio of 12.4% as of September 30, 2025, above the regulatory minimum of 4.5%[197] - The leverage ratio for the Company was 10.5% as of September 30, 2025, significantly higher than the regulatory minimum of 4.0%[197] - The Company’s total capital ratio was 13.8%, exceeding the regulatory minimum of 8.0% for "adequately capitalized" institutions[197] Strategic Initiatives and Future Outlook - Future outlook remains positive with ongoing efforts in new product development and market expansion strategies[61] - The company’s ability to execute its strategic plan for growth through organic means or acquisitions remains a critical factor for net income[139] - The proposed merger between Olympic Bancorp, Inc. and the Company may face litigation from shareholders seeking financial damages or injunctions[213]

Sales Performance - Wholesale net sales decreased by 2% in dollars and 7% in volume for Q3 2025 compared to Q3 2024, with a 10% price increase implemented on July 1, 2025[52]. - Consolidated net sales for Q3 2025 were $73.1 million, down 2% from $74.3 million in Q3 2024, while year-to-date net sales totaled $199.4 million, a decrease of 5% from $209.8 million in 2024[61][62]. - The BOGS brand experienced a 17% sales decline in Q3 2025, attributed to an oversaturated outdoor footwear market and mild winters[57]. - Florsheim brand sales increased by 8% in Q3 2025, benefiting from its positioning in the traditional dress and dress-casual footwear market[55]. - Retail segment net sales declined by 4% in Q3 2025, driven by a decrease in e-commerce sales and increased price sensitivity among consumers[59]. - North American Wholesale segment net sales decreased by 2% to $60.151 million for Q3 2025, compared to $61.075 million in Q3 2024[74]. - Retail segment net sales totaled $6.953 million for Q3 2025, a decline of 4% from $7.225 million in Q3 2024[82]. - For the nine months ending September 30, 2025, total net sales decreased by 5% to $199.372 million compared to $209.819 million in the same period of 2024[74]. - Florsheim Australia's net sales remained flat at $6.0 million for Q3 2025, with a year-to-date decline of $0.7 million or 4% compared to the same period in 2024[87]. Earnings and Profitability - Consolidated gross earnings as a percentage of net sales fell to 40.7% in Q3 2025 from 44.3% in Q3 2024, primarily due to higher costs from incremental tariffs[67]. - Net earnings for Q3 2025 were $6.6 million, or $0.69 per diluted share, down 18% from $8.1 million, or $0.84 per diluted share, in Q3 2024[61]. - Consolidated earnings from operations decreased by 21% in Q3 2025, totaling $8.1 million compared to $10.2 million in Q3 2024[61]. - Earnings from operations for the North American Wholesale segment fell by 20% to $7.544 million in Q3 2025, down from $9.406 million in Q3 2024[74]. - Retail operating earnings declined by $1.4 million for the nine months ending September 30, 2025, compared to the same period in 2024[85]. - Gross earnings for the North American Wholesale segment were 35.7% of net sales in Q3 2025, down from 40.1% in Q3 2024[78]. Cash Flow and Liquidity - Cash and marketable securities totaled $78.5 million as of September 30, 2025, with no debt outstanding on the $40.0 million revolving line of credit[63]. - Net cash provided by operating activities totaled $13.2 million for the first nine months of 2025, down from $17.3 million in the same period last year[94]. - Cash dividends paid in the first nine months of 2025 totaled $7.7 million, compared to $9.6 million in the same period of 2024[97]. - Approximately $4.3 million of cash and cash equivalents was held by foreign subsidiaries as of September 30, 2025[103]. - The company believes that available cash, marketable securities, and cash provided by operations will support business cash needs for at least one year[103]. Tax and Financial Agreements - The effective tax rate for Q3 2025 was 26.3%, compared to 25.7% in Q3 2024[71]. - The effective tax rate for the nine months ending September 30, 2025, was 31.8%, compared to 25.8% in 2024, primarily due to a valuation allowance on deferred tax assets[92]. - The Amended Credit Agreement extended the maturity of the credit facility to September 25, 2026, with a maximum available borrowing limit of $40.0 million[100]. - The interest rate margin applicable to amounts outstanding was reduced by 15 basis points, now at SOFR plus 110 basis points[100]. - As of September 30, 2025, there were no outstanding borrowings on the line of credit, and the company was in compliance with all financial covenants[101]. Shareholder Returns - A total of $21.6 million in special cash dividends was prefunded in December 2024 and paid to shareholders in January 2025[102]. - The company continues to evaluate the best uses for available liquidity, including capital expenditures, stock repurchases, and acquisitions[103].