Catalyst Bancorp, Inc. Announces 2025 Second Quarter Results

, /PRNewswire/ -- Catalyst Bancorp, Inc. (Nasdaq: "CLST") (the "Company"), the parent company for Catalyst Bank (the "Bank") (www.catalystbank.com), reported net income of $521,000 for the second quarter of 2025, compared to net income of $586,000 for the first quarter of 2025. "We're pleased to see both loan and deposit growth during the quarter," said Joe Zanco, President and Chief Executive Officer of the Company and Bank. "When given the opportunity to earn new business, our success rate remains strong. Our team continues to build momentum across our markets." Loans Loans totaled $167.6 million at June 30, 2025, up $1.5 million, or less than 1%, from March 31, 2025. The following table sets forth the composition of the Company's loan portfolio as of the dates indicated. (Dollars in thousands) 6/30/2025 3/31/2025 Change Real estate loans One- to four-family residential $ 80,195 $ 82,025 $ (1,830) (2) % Commercial real estate 33,976 22,103 11,873 54 Construction and land 20,650 32,038 (11,388) (36) Multi-family residential 5,432 2,530 2,902 115 Total real estate loans 140,253 138,696 1,557 1 Other loans Commercial and industrial 25,035 25,447 (412) (2) % Consumer 2,281 1,934 347 18 Total other loans 27,316 27,381 (65) - Total loans $ 167,569 $ 166,077 $ 1,492 1 In the second quarter of 2025, four construction loans totaling $14.5 million were converted to amortizing real estate loans following the completion of their respective construction projects. Of these, one loan totaling $2.9 million was classified as multi-family, while the remaining loans were designated as commercial real estate. The following table presents certain major segments of our commercial real estate, construction and land, and commercial and industrial loan balances as of the dates indicated. (Dollars in thousands) 6/30/2025 3/31/2025 Change Commercial real estate Retail $ 9,739 $ 3,723 $ 6,016 162 % Hospitality 5,849 3,342 2,507 75 Health service facilities 3,345 389 2,956 760 Restaurants 1,049 1,070 (21) (2) Oilfield services 384 393 (9) (2) Other non-owner occupied 2,648 2,479 169 7 Other owner occupied 10,962 10,707 255 2 Total commercial real estate $ 33,976 $ 22,103 $ 11,873 54 Construction and land Multi-family residential $ 8,997 $ 11,297 $ (2,300) (20) % Health service facilities 7,649 8,626 (977) (11) Hospitality - 2,716 (2,716) (100) Retail - 6,077 (6,077) (100) Other commercial construction and land 1,782 1,791 (9) (1) Consumer residential construction and land 2,222 1,531 691 45 Total construction and land $ 20,650 $ 32,038 $ (11,388) (36) Commercial and industrial Oilfield services $ 8,081 $ 8,474 $ (393) (5) % Industrial equipment 8,453 8,285 168 2 Professional services 3,146 3,119 27 1 Other commercial and industrial 5,355 5,569 (214) (4) Total commercial and industrial loans $ 25,035 $ 25,447 $ (412) (2) Credit Quality and Allowance for Credit Losses At June 30, 2025, non-performing assets ("NPAs") totaled $1.8 million, compared to $1.7 million at March 31, 2025. The ratio of NPAs to total assets was 0.64% and 0.63% at June 30, 2025 and March 31, 2025, respectively. Non-performing loans ("NPLs") comprised 1.00% and 0.99% of total loans at June 30, 2025 and March 31, 2025, respectively. At June 30, 2025 and March 31, 2025, 99% and 98% of total NPLs, respectively, were one- to four-family residential mortgage loans. At June 30, 2025, the allowance for credit losses on loans totaled $2.4 million, or 1.45% of total loans, compared to $2.5 million, or 1.51% of total loans, at March 31, 2025. The provision for credit losses was zero for the first and second quarters of 2025. Net loan charge-offs totaled $42,000 during the second quarter of 2025, compared to net charge-offs of $39,000 for the first quarter of 2025. Net loan charge-offs during the first and second quarters of 2025 were primarily related to residential mortgage loans and overdrawn deposit accounts. Deposits Total deposits were $182.2 million at June 30, 2025, up $1.6 million, or 1%, from March 31, 2025. Total deposits averaged $179.4 million during the second quarter of 2025, compared to $177.1 million during the first quarter of 2025. The change in deposits was mainly due to fluctuations in public funds and inflows from commercial customers. The following table sets forth the composition of the Company's deposits as of the dates indicated. (Dollars in thousands) 6/30/2025 3/31/2025 Change Non-interest-bearing demand deposits $ 31,155 $ 26,093 $ 5,062 19 % Interest-bearing demand deposits 35,307 42,737 (7,430) (17) Money market 9,437 9,737 (300) (3) Savings 51,001 42,542 8,459 20 Certificates of deposit 55,311 59,489 (4,178) (7) Total deposits $ 182,211 $ 180,598 $ 1,613 1 The ratio of the Company's total loans to total deposits was 92% at both June 30 and March 31, 2025. Total public fund deposits amounted to $29.0 million, or 16% of total deposits, at June 30, 2025, compared to $29.8 million, or 17% of total deposits, at March 31, 2025. At June 30, 2025, approximately 64% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits, compared to 80% at March 31, 2025. At June 30, 2025, a larger portion of public funds were held in savings accounts. Capital and Share Repurchases At June 30, 2025 and March 31, 2025, consolidated shareholders' equity totaled $80.8 million, or 29.5% of total assets, and $80.6 million, or 29.7% of total assets, respectively. The Company repurchased 62,385 shares of its common stock at an average cost per share of $11.91 during the second quarter of 2025, compared to 72,949 shares at an average cost per share of $11.86 during the first quarter of 2025. Under the Company's November 2024 Repurchase Plan, 51,816 shares of the Company's common stock were available for repurchase at June 30, 2025. Since the announcement of our first share repurchase plan on January 26, 2023 and through June 30, 2025, the Company has repurchased a total of 1,147,184 shares of its common stock, or approximately 22% of the common shares originally issued, at an average cost per share of $11.92. At June 30, 2025, the Company had common shares outstanding of 4,142,816. Net Interest Income The net interest margin for the second quarter of 2025 was 3.98%, up nine basis points compared to the prior quarter. For the second quarter of 2025, the average yield on interest-earning assets was 5.58%, up four basis points from the prior quarter, and the average rate paid on interest-bearing liabilities was 2.51%, down five basis points from the first quarter of 2025. Net interest income for the second quarter of 2025 was $2.5 million, up $103,000, or 4%, compared to the first quarter of 2025. Total interest income was up $87,000, or 3%, in the second quarter of 2025 compared to the prior quarter largely due to an increase in income on loans. Total interest expense decreased $16,000, or 2%, in the second quarter of 2025 compared to the prior quarter due to a decline in the cost of deposits. The following table sets forth, for the periods indicated, the Company's total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Taxable equivalent ("TE") yields have been calculated using a marginal tax rate of 21%. All average balances are based on daily balances. Three Months Ended 6/30/2025 3/31/2025 (Dollars in thousands) Average Balance Interest Average Yield/ Rate(TE) Average Balance Interest Average Yield/ Rate(TE) INTEREST-EARNING ASSETS Loans receivable(1) $ 167,627 $ 2,792 6.68 % $ 166,145 $ 2,738 6.68 % Investment securities(2) 48,285 294 2.49 46,960 275 2.35 Other interest earning assets 33,225 375 4.53 33,585 361 4.36 Total interest-earning assets $ 249,137 $ 3,461 5.58 $ 246,690 $ 3,374 5.54 INTEREST-BEARING LIABILITIES Demand deposits, money market, and savings accounts $ 92,088 $ 466 2.03 % $ 94,133 $ 483 2.08 % Certificates of deposit 57,018 459 3.23 55,846 458 3.32 Total interest-bearing deposits 149,106 925 2.49 149,979 941 2.54 Borrowings 9,619 68 2.84 9,573 68 2.85 Total interest-bearing liabilities $ 158,725 $ 993 2.51 $ 159,552 $ 1,009 2.56 Net interest-earning assets $ 90,412 $ 87,138 Net interest income; average interest rate spread $ 2,468 3.07 % $ 2,365 2.98 % Net interest margin(3) 3.98 3.89 (1) Includes non-accrual loans during the respective periods. Calculated net of deferred fees and discounts and loans in-process. (2) Average investment securities does not include unrealized holding gains/losses on available-for-sale securities. (3) Equals net interest income divided by average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%. Non-interest Income Non-interest income for the second quarter of 2025 totaled $344,000, down $209,000, or 38%, compared to the first quarter of 2025. Non-interest income for the first quarter of 2025 included insurance proceeds of $216,000 for fire and flood damages related to foreclosed properties. Non-interest Expense Non-interest expense for the second quarter of 2025 totaled $2.2 million, down $20,000, or 1%, compared to the first quarter of 2025. Foreclosed assets expense for the second quarter of 2025 included a write-down on foreclosed assets of $14,000. In the first quarter of 2025, the Company incurred net losses of $88,000 on the sale of foreclosed assets. Other non-interest expense totaled $234,000 for the second quarter of 2025, up $27,000, or 13%, from the prior quarter primarily due to an increase in loan collection related expenses. About Catalyst Bancorp, Inc. Catalyst Bancorp, Inc. (Nasdaq: CLST) is a Louisiana corporation and registered bank holding company for Catalyst Bank, its wholly-owned subsidiary, with $273.8 million in assets at June 30, 2025. Catalyst Bank, formerly St. Landry Homestead Federal Savings Bank, has been in operation in the Acadiana region of south-central Louisiana for over 100 years. With a focus on fueling business and improving lives throughout the region, Catalyst Bank offers commercial and retail banking products through our six full-service branches located in Carencro, Eunice, Lafayette, Opelousas, and Port Barre. To learn more about Catalyst Bancorp and Catalyst Bank, visit www.catalystbank.com, or the website of the Securities and Exchange Commission, www.sec.gov. Forward-looking Statements This news release reflects industry conditions, Company performance and financial results and contains "forward-looking statements,' which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. These forward-looking statements are subject to a number of risk factors and uncertainties which could cause the Company's actual results and experience to differ materially from the anticipated results and expectation expressed in such forward-looking statements. Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Supervision and Regulation" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website and the Company's website, each of which are referenced above. To the extent that statements in this news release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology. Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. All information is as of the date of this news release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason. CATALYST BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Unaudited) (Unaudited) (Dollars in thousands) 6/30/2025 3/31/2025 12/31/2024 6/30/2024 ASSETS Non-interest-bearing cash $ 4,024 $ 4,128 $ 4,076 $ 4,952 Interest-bearing cash and due from banks 36,032 36,190 40,219 70,503 Total cash and cash equivalents 40,056 40,318 44,295 75,455 Investment securities: Securities available-for-sale, at fair value 29,294 29,840 28,712 29,748 Securities held-to-maturity 14,948 13,445 13,447 13,454 Loans receivable, net of unearned income 167,569 166,077 167,076 153,266 Allowance for credit losses (2,431) (2,500) (2,522) (2,215) Loans receivable, net 165,138 163,577 164,554 151,051 Accrued interest receivable 883 866 851 737 Foreclosed assets 80 77 194 104 Premises and equipment, net 5,977 6,049 6,085 6,114 Stock in correspondent banks, at cost 825 809 1,961 1,919 Bank-owned life insurance 14,726 14,607 14,489 14,252 Other assets 1,858 2,060 2,109 2,499 TOTAL ASSETS $ 273,785 $ 271,648 $ 276,697 $ 295,333 LIABILITIES Deposits: Non-interest-bearing $ 31,155 $ 26,093 $ 28,281 $ 30,177 Interest-bearing 151,056 154,505 157,393 149,888 Total deposits 182,211 180,598 185,674 180,065 Borrowings 9,647 9,603 9,558 30,261 Other liabilities 1,128 856 1,261 3,994 TOTAL LIABILITIES 192,986 191,057 196,493 214,320 SHAREHOLDERS' EQUITY Common stock 41 42 43 45 Additional paid-in capital 38,259 38,844 39,561 41,914 Unallocated common stock held by benefit plans (5,596) (5,649) (5,702) (6,116) Retained earnings 50,967 50,446 49,860 48,787 Accumulated other comprehensive loss (2,872) (3,092) (3,558) (3,617) TOTAL SHAREHOLDERS' EQUITY 80,799 80,591 80,204 81,013 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 273,785 $ 271,648 $ 276,697 $ 295,333 CATALYST BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Six Months Ended (Dollars in thousands) 6/30/2025 3/31/2025 6/30/2024 6/30/2025 6/30/2024 INTEREST INCOME Loans receivable, including fees $ 2,792 $ 2,738 $ 2,383 $ 5,530 $ 4,597 Investment securities 294 275 210 569 535 Cash and due from banks 353 341 912 694 1,506 Other 22 20 20 42 42 Total interest income 3,461 3,374 3,525 6,835 6,680 INTEREST EXPENSE Deposits 925 941 771 1,866 1,540 Borrowings 68 68 306 136 599 Total interest expense 993 1,009 1,077 2,002 2,139 Net interest income 2,468 2,365 2,448 4,833 4,541 Provision for credit losses - - 99 - 194 Net interest income after provision for credit losses 2,468 2,365 2,349 4,833 4,347 NON-INTEREST INCOME (LOSS) Service charges on deposit accounts 202 197 194 399 397 Bank-owned life insurance 119 118 113 237 226 Loss on sales of investment securities - - - - (5,507) Other income on foreclosed assets - 216 - 216 - (Loss) gain on sale of fixed assets - - (5) - 6 Other 23 22 64 45 81 Total non-interest income (loss) 344 553 366 897 (4,797) NON-INTEREST EXPENSE Salaries and employee benefits 1,262 1,245 1,143 2,507 2,403 Occupancy and equipment 208 199 183 407 379 Data processing and communication 176 182 138 358 932 Professional fees 114 101 117 215 224 Directors' fees 117 114 114 231 229 ATM and debit card 29 22 31 51 100 Foreclosed assets, net 18 89 26 107 34 Advertising and marketing 20 39 43 59 81 Other 234 207 273 441 477 Total non-interest expense 2,178 2,198 2,068 4,376 4,859 Income (loss) before income tax expense (benefit) 634 720 647 1,354 (5,309) Income tax expense (benefit) 113 134 120 247 (1,147) NET INCOME (LOSS) $ 521 $ 586 $ 527 $ 1,107 $ (4,162) Earnings (loss) per share: Basic $ 0.14 $ 0.16 $ 0.13 $ 0.30 $ (1.03) Diluted 0.14 0.16 0.13 0.30 (1.03) CATALYST BANCORP, INC. AND SUBSIDIARY SELECTED FINANCIAL DATA Three Months Ended Six Months Ended (Dollars in thousands) 6/30/2025 3/31/2025 6/30/2024 6/30/2025 6/30/2024 EARNINGS DATA Total interest income $ 3,461 $ 3,374 $ 3,525 $ 6,835 $ 6,680 Total interest expense 993 1,009 1,077 2,002 2,139 Net interest income 2,468 2,365 2,448 4,833 4,541 Provision for credit losses - - 99 - 194 Total non-interest income (loss) 344 553 366 897 (4,797) Total non-interest expense 2,178 2,198 2,068 4,376 4,859 Income tax expense (benefit) 113 134 120 247 (1,147) Net income (loss) $ 521 $ 586 $ 527 $ 1,107 $ (4,162) AVERAGE BALANCE SHEET DATA Total loans $ 167,627 $ 166,145 $ 150,257 $ 166,891 $ 147,342 Total interest-earning assets 249,137 246,690 264,776 247,920 267,306 Total assets 270,788 268,232 285,773 269,517 286,240 Total interest-bearing deposits 149,106 149,979 143,611 149,540 144,906 Total interest-bearing liabilities 158,725 159,552 173,079 159,136 173,636 Total deposits 179,426 177,106 173,326 178,272 173,990 Total shareholders' equity 80,611 80,426 80,965 80,519 81,816 SELECTED RATIOS Return on average assets 0.77 % 0.89 % 0.74 % 0.83 % (2.92) % Return on average equity 2.59 2.96 2.62 2.77 (10.23) Efficiency ratio 77.46 75.31 73.47 76.37 (1,901.18) Net interest margin(TE) 3.98 3.89 3.72 3.93 3.42 Average equity to average assets 29.77 29.98 28.33 29.88 28.58 Common equity Tier 1 capital ratio(1) 43.72 46.95 49.09 Tier 1 leverage capital ratio(1) 27.56 29.45 26.88 Total risk-based capital ratio(1) 44.98 48.20 50.34 NON-FINANCIAL DATA Total employees (full-time equivalent) 49 49 47 Common shares issued and outstanding, end of period 4,142,816 4,205,201 4,478,527 (1) Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change. CATALYST BANCORP, INC. AND SUBSIDIARY SELECTED FINANCIAL DATA (continued) Three Months Ended Six Months Ended (Dollars in thousands) 6/30/2025 3/31/2025 6/30/2024 6/30/2025 6/30/2024 ALLOWANCE FOR CREDIT LOSSES Loans: Beginning balance $ 2,500 $ 2,522 $ 2,068 $ 2,522 $ 2,124 Provision for credit losses (27) 17 185 (10) 227 Charge-offs (63) (53) (57) (116) (180) Recoveries 21 14 19 35 44 Net (charge-offs) recoveries (42) (39) (38) (81) (136) Ending balance $ 2,431 $ 2,500 $ 2,215 $ 2,431 $ 2,215 Unfunded commitments: Beginning balance $ 104 $ 121 $ 310 121 257 Provision for (reversal of) credit losses on unfunded commitments 27 (17) (86) 10 (33) Ending balance $ 131 $ 104 $ 224 $ 131 $ 224 Total provision for credit losses $ - $ - $ 99 $ - $ 194 CREDIT QUALITY(1) Non-accruing loans $ 1,455 $ 1,554 $ 1,560 Accruing loans 90 days or more past due 215 91 40 Total non-performing loans 1,670 1,645 1,600 Foreclosed assets 80 77 104 Total non-performing assets $ 1,750 $ 1,722 $ 1,704 Total non-performing loans to total loans 1.00 % 0.99 % 1.04 % Total non-performing assets to total assets 0.64 0.63 0.58 (1) Credit quality data and ratios are as of the end of each period presented. For more information:Joe Zanco, President and CEO(337) 948-3033 SOURCE Catalyst Bancorp, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Catalyst Bancorp, Inc. Announces 2025 Second Quarter Results

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