President’s Message (January 2026)

Reflecting on 2025: A Year of Change

For Celtic Capital, 2025 was a year marked by significant internal transitions, the addition of new team members, and a renewed sense of optimism.

Key Organizational Updates

Several notable changes shaped our year:

• Two long-tenured team members in critical roles (our head of Operations and IT Director) retired after years of dedicated service.
• One of our Midwest Client Development Officers left to pursue other opportunities. We are actively seeking a replacement, ideally based in either the Pacific Northwest or Mountain West territories.
• We welcomed a Client Development Officer focused on expanding relationships across the Southeast.
• We also added a seasoned auditor to our team; someone who previously supported Celtic Capital on a contract basis and now brings his experience in-house.

Navigating Change with Perspective

As British philosopher, writer and speaker Alan Watts once said, “The only way to make sense out of change is to plunge into it, move with it, and join the dance.”

Well, we certainly have been dancing, although I wouldn’t call it a jig, particularly when it comes to transitioning from internal IT expertise to working with an outside IT group. The learning curve has been steep: new processes, new terminology, and plenty of time invested in getting up to speed. While I’m becoming more fluent in “IT-speak,” it hasn’t come easily.

That said, embracing change is essential. We remain committed to making thoughtful improvements that strengthen our infrastructure and continue to position us well for the long term.

Market Conditions and Business Activity

From a business development standpoint, 2025 was not our strongest year for new business activity, largely due to external market uncertainty.

• During the second and third quarters, many prospective clients struggled with indecision.
• Opportunities weren’t lost to competitors; instead, companies delayed decisions and postponed commitments altogether.
• Ongoing concerns related to tariffs created uncertainty, prompting many businesses to adopt a wait-and-see approach.
• Banks were also less inclined to push clients into alternative solutions, reinforcing that cautious mindset.

In the fourth quarter, some previously-paused opportunities resurfaced. We revisited the original proposals, and several transactions moved forward. While year-end activity was quieter than I would have preferred, it was consistent with seasonal patterns.

A Positive Note: Portfolio Stability

One of the most encouraging aspects of 2025 was portfolio performance. Runoff was significantly lower than in a typical year, which allowed our overall portfolio to grow despite softer new business volume.

Looking Ahead to 2026

As I write this in December 2025, my outlook for 2026 is straightforward: I’m hopeful.

Compared to the rollercoaster ride in 2023, the “boring” (as I called it) 2024, and 2025 marked with a series of internal transitions and external indecision, I’m hoping the year ahead feels…well, somewhat normal (if such a thing even exists anymore).

What I do know is that it’s getting increasingly difficult to predict what’s coming next. But in the spirit of Alan Watts, let’s choose to “plunge into it, move with it, and join the dance.”

Whether your dance is the waltz or the cha-cha, I wish you a successful and prosperous 2026.

Mark Hafner
President & CEO
Celtic Capital Corporation