Catalyst Bancorp, Inc. Announces 2025 First Quarter Results
OPELOUSAS, La., April 24, 2025 /PRNewswire/ -- Catalyst Bancorp, Inc. (Nasdaq: "CLST") (the "Company"), the parent company for Catalyst Bank (the "Bank") (www.catalystbank.com), reported net income of $586,000 for the first quarter of 2025, compared to net income of $626,000 for the fourth quarter of 2024.
"Loan growth was muted to start the year as market turbulence caused some of our customers to delay projects," said Joe Zanco, President and Chief Executive Officer of the Company and Bank. "On a brighter note, we were grateful to have received the 'Best Community Banks to Work For' Award at the ICBA's Live Conference in Nashville in March. Our employees continue to do a great job living our values of Truth, Humility, Impact, Now and Connection."
Loans
Loans totaled $166.1 million at March 31, 2025, down $1.0 million, or less than 1%, from December 31, 2024. The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.
(Dollars in thousands) | 3/31/2025 | 12/31/2024 | Change | |||||||||
Real estate loans | ||||||||||||
One- to four-family residential | $ | 82,025 | $ | 81,097 | $ | 928 | 1 | % | ||||
Commercial real estate | 22,103 | 22,108 | (5) | - | ||||||||
Construction and land | 32,038 | 32,941 | (903) | (3) | ||||||||
Multi-family residential | 2,530 | 2,570 | (40) | (2) | ||||||||
Total real estate loans | 138,696 | 138,716 | (20) | - | ||||||||
Other loans | ||||||||||||
Commercial and industrial | 25,447 | 26,439 | (992) | (4) | % | |||||||
Consumer | 1,934 | 1,921 | 13 | 1 | ||||||||
Total other loans | 27,381 | 28,360 | (979) | (3) | ||||||||
Total loans | $ | 166,077 | $ | 167,076 | $ | (999) | (1) | |||||
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) | 3/31/2025 | 12/31/2024 | Change | |||||||||
Commercial real estate | ||||||||||||
Retail | $ | 3,723 | $ | 4,005 | $ | (282) | (7) | % | ||||
Hospitality | 3,342 | 3,460 | (118) | (3) | ||||||||
Restaurants | 1,070 | 1,091 | (21) | (2) | ||||||||
Oilfield services | 393 | 402 | (9) | (2) | ||||||||
Other non-owner occupied | 2,479 | 2,658 | (179) | (7) | ||||||||
Other owner occupied | 11,096 | 10,492 | 604 | 6 | ||||||||
Total commercial real estate | $ | 22,103 | $ | 22,108 | $ | (5) | - | |||||
Construction and land | ||||||||||||
Multi-family residential | $ | 11,297 | $ | 10,031 | $ | 1,266 | 13 | % | ||||
Health service facilities | 8,626 | 7,139 | 1,487 | 21 | ||||||||
Hospitality | 2,716 | 2,716 | - | - | ||||||||
Retail | 6,077 | 5,106 | 971 | 19 | ||||||||
Other commercial construction and land | 1,791 | 4,364 | (2,573) | (59) | ||||||||
Consumer residential construction and land | 1,531 | 3,585 | (2,054) | (57) | ||||||||
Total construction and land | $ | 32,038 | $ | 32,941 | $ | (903) | (3) | |||||
Commercial and industrial | ||||||||||||
Oilfield services | $ | 8,474 | $ | 14,823 | $ | (6,349) | (43) | % | ||||
Industrial equipment | 8,285 | 2,831 | 5,454 | 193 | ||||||||
Professional services | 3,119 | 3,127 | (8) | (0) | ||||||||
Other commercial and industrial | 5,569 | 5,658 | (89) | (2) | ||||||||
Total commercial and industrial loans | $ | 25,447 | $ | 26,439 | $ | (992) | (4) | |||||
Credit Quality and Allowance for Credit Losses
At March 31, 2025, non-performing assets ("NPAs") totaled $1.7 million, down $103,000, or 6%, from $1.8 million at December 31, 2024 primarily due to a decline in foreclosed assets. The ratio of NPAs to total assets was 0.63% and 0.66% at March 31, 2025 and December 31, 2024, respectively. Non-performing loans ("NPLs") comprised 0.99% and 0.98% of total loans at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025 and December 31, 2024, 98% of total NPLs were one- to four-family residential mortgage loans.
At both March 31, 2025 and December 31, 2024, the allowance for credit losses on loans totaled $2.5 million, or 1.51% of total loans. The provision for credit losses was zero for the first quarter of 2025 and the fourth quarter of 2024. Net loan charge-offs totaled $39,000 during the first quarter of 2025, compared to net charge-offs of $2,000 for the fourth quarter of 2024. Net loan charge-offs during the first quarter of 2025 were primarily related to residential mortgage loans and overdrawn deposit accounts.
Deposits
Total deposits were $180.6 million at March 31, 2025, down $5.1 million, or 3%, from December 31, 2024. Total deposits averaged $177.1 million during the first quarter of 2025, compared to $171.0 million during the fourth quarter of 2024. The fluctuations in total deposits were mainly due to public funds. The following table sets forth the composition of the Company's deposits as of the dates indicated.
(Dollars in thousands) | 3/31/2025 | 12/31/2024 | Change | |||||||||
Non-interest-bearing demand deposits | $ | 26,093 | $ | 28,281 | $ | (2,188) | (8) | % | ||||
Interest-bearing demand deposits | 42,737 | 48,334 | (5,597) | (12) | ||||||||
Money market | 9,737 | 10,729 | (992) | (9) | ||||||||
Savings | 42,542 | 37,639 | 4,903 | 13 | ||||||||
Certificates of deposit | 59,489 | 60,691 | (1,202) | (2) | ||||||||
Total deposits | $ | 180,598 | $ | 185,674 | $ | (5,076) | (3) | |||||
The ratio of the Company's total loans to total deposits was 92% at March 31, 2025, compared to 90% at December 31, 2024.
Total public fund deposits amounted to $29.8 million, or 17% of total deposits, at March 31, 2025, compared to $35.6 million, or 19% of total deposits, at December 31, 2024. At March 31, 2025, approximately 80% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits from municipalities within our market.
Capital and Share Repurchases
At March 31, 2025 and December 31, 2024, consolidated shareholders' equity totaled $80.6 million, or 29.7% of total assets, and $80.2 million, or 29.0% of total assets, respectively.
The Company repurchased 72,949 shares of its common stock at an average cost per share of $11.86 during the first quarter of 2025, compared to 120,977 shares at an average cost per share of $11.70 during the fourth quarter of 2024. Under the Company's November 2024 Repurchase Plan, 114,201 shares of the Company's common stock were available for repurchase at March 31, 2025. Since the announcement of our first share repurchase plan on January 26, 2023 and through March 31, 2025, the Company has repurchased a total of 1,084,799 shares of its common stock, or approximately 21% of the common shares originally issued, at an average cost per share of $11.93. At March 31, 2025, the Company had common shares outstanding of 4,205,201.
Net Interest Income
The net interest margin for the first quarter of 2025 was 3.89%, down three basis points compared to the prior quarter. For the first quarter of 2025, the average yield on interest-earning assets was 5.54%, down three basis points from the prior quarter, and the average rate paid on interest-bearing liabilities was 2.56%, down one basis point from the fourth quarter of 2024.
Net interest income for the first quarter of 2025 was $2.4 million, down $107,000, or 4%, compared to the fourth quarter of 2024. Total interest income was down $137,000, or 4%, in the first quarter of 2025 compared to the prior quarter primarily due to a decline in income on residential mortgage loans, commercial and industrial loans, and interest-earning cash. Total interest expense decreased $30,000, or 3%, in the first quarter of 2025 compared to the prior quarter. During the fourth quarter of 2024, the Bank's $20.0 million BTFP advance was paid off, which led to a decline in interest expense on borrowings of $112,000 for the first quarter of 2025 compared to the fourth quarter of 2024. The decline in interest expense on borrowings was partially offset by an increase in interest expense on deposits that was largely driven by an increase in the cost of public fund 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 | ||||||||||||||||||
3/31/2025 | 12/31/2024 | |||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Average | Interest | Average | ||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||
Loans receivable(1) | $ | 166,145 | $ | 2,738 | 6.68 | % | $ | 167,187 | $ | 2,814 | 6.70 | % | ||||||
Investment securities(2) | 46,960 | 275 | 2.35 | 47,764 | 273 | 2.30 | ||||||||||||
Other interest earning assets | 33,585 | 361 | 4.36 | 36,107 | 424 | 4.66 | ||||||||||||
Total interest-earning assets | $ | 246,690 | $ | 3,374 | 5.54 | $ | 251,058 | $ | 3,511 | 5.57 | ||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||
Demand deposits, money market, and | $ | 94,133 | $ | 483 | 2.08 | % | $ | 85,118 | $ | 394 | 1.84 | % | ||||||
Certificates of deposit | 55,846 | 458 | 3.32 | 57,031 | 465 | 3.24 | ||||||||||||
Total interest-bearing deposits | 149,979 | 941 | 2.54 | 142,149 | 859 | 2.40 | ||||||||||||
Borrowings | 9,573 | 68 | 2.85 | 18,663 | 180 | 3.85 | ||||||||||||
Total interest-bearing liabilities | $ | 159,552 | $ | 1,009 | 2.56 | $ | 160,812 | $ | 1,039 | 2.57 | ||||||||
Net interest-earning assets | $ | 87,138 | $ | 90,246 | ||||||||||||||
Net interest income; average interest rate | $ | 2,365 | 2.98 | % | $ | 2,472 | 3.00 | % | ||||||||||
Net interest margin(3) | 3.89 | 3.92 | ||||||||||||||||
(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 first quarter of 2025 totaled $553,000, up $216,000, or 64%, compared to the fourth quarter of 2024. 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 first quarter of 2025 totaled $2.2 million, up $160,000, or 8%, compared to the fourth quarter of 2024. Foreclosed assets expense for the first quarter of 2025 included net losses of $88,000 on the sale of foreclosed properties.
Salaries and employee benefits expense totaled $1.2 million for the first quarter of 2025, up $18,000, or 1%, from the prior quarter primarily due to an increase in the cost of employee benefits for 2025.
Advertising and marketing expense totaled $39,000 for the first quarter of 2025, up $22,000, or 129%, from the prior quarter largely driven by an increase in business development activity during the first quarter of 2025.
Other non-interest expense totaled $207,000 for the first quarter of 2025, up $19,000, or 10%, 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 $271.6 million in assets at March 31, 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) | ||||||||
(Dollars in thousands) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||
ASSETS | |||||||||
Non-interest-bearing cash | $ | 4,128 | $ | 4,076 | $ | 3,118 | |||
Interest-bearing cash and due from banks | 36,190 | 40,219 | 72,893 | ||||||
Total cash and cash equivalents | 40,318 | 44,295 | 76,011 | ||||||
Investment securities: | |||||||||
Securities available-for-sale, at fair value | 29,840 | 28,712 | 25,534 | ||||||
Securities held-to-maturity | 13,445 | 13,447 | 13,457 | ||||||
Loans receivable, net of unearned income | 166,077 | 167,076 | 143,491 | ||||||
Allowance for credit losses | (2,500) | (2,522) | (2,068) | ||||||
Loans receivable, net | 163,577 | 164,554 | 141,423 | ||||||
Accrued interest receivable | 866 | 851 | 733 | ||||||
Foreclosed assets | 77 | 194 | 237 | ||||||
Premises and equipment, net | 6,049 | 6,085 | 5,995 | ||||||
Stock in correspondent banks, at cost | 809 | 1,961 | 1,898 | ||||||
Bank-owned life insurance | 14,607 | 14,489 | 14,139 | ||||||
Other assets | 2,060 | 2,109 | 2,622 | ||||||
TOTAL ASSETS | $ | 271,648 | $ | 276,697 | $ | 282,049 | |||
LIABILITIES | |||||||||
Deposits: | |||||||||
Non-interest-bearing | $ | 26,093 | $ | 28,281 | $ | 28,836 | |||
Interest-bearing | 154,505 | 157,393 | 140,801 | ||||||
Total deposits | 180,598 | 185,674 | 169,637 | ||||||
Borrowings | 9,603 | 9,558 | 29,423 | ||||||
Other liabilities | 856 | 1,261 | 1,736 | ||||||
TOTAL LIABILITIES | 191,057 | 196,493 | 200,796 | ||||||
SHAREHOLDERS' EQUITY | |||||||||
Common stock | 42 | 43 | 46 | ||||||
Additional paid-in capital | 38,844 | 39,561 | 42,711 | ||||||
Unallocated common stock held by benefit plans | (5,649) | (5,702) | (6,169) | ||||||
Retained earnings | 50,446 | 49,860 | 48,260 | ||||||
Accumulated other comprehensive income (loss) | (3,092) | (3,558) | (3,595) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 80,591 | 80,204 | 81,253 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 271,648 | $ | 276,697 | $ | 282,049 | |||
CATALYST BANCORP, INC. AND SUBSIDIARY | |||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||
(Unaudited) | |||||||||
Three Months Ended | |||||||||
(Dollars in thousands) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||
INTEREST INCOME | |||||||||
Loans receivable, including fees | $ | 2,738 | $ | 2,814 | $ | 2,214 | |||
Investment securities | 275 | 273 | 325 | ||||||
Cash and due from banks | 341 | 401 | 594 | ||||||
Other | 20 | 23 | 22 | ||||||
Total interest income | 3,374 | 3,511 | 3,155 | ||||||
INTEREST EXPENSE | |||||||||
Deposits | 941 | 859 | 769 | ||||||
Borrowings | 68 | 180 | 293 | ||||||
Total interest expense | 1,009 | 1,039 | 1,062 | ||||||
Net interest income | 2,365 | 2,472 | 2,093 | ||||||
Provision for credit losses | - | - | 95 | ||||||
Net interest income after provision for credit losses | 2,365 | 2,472 | 1,998 | ||||||
NON-INTEREST INCOME | |||||||||
Service charges on deposit accounts | 197 | 201 | 203 | ||||||
Bank-owned life insurance | 118 | 119 | 113 | ||||||
Loss on sales of investment securities | - | - | (5,507) | ||||||
Other income on foreclosed assets | 216 | - | - | ||||||
Gain (loss) on disposals and sales of fixed assets | - | - | 11 | ||||||
Other | 22 | 17 | 17 | ||||||
Total non-interest income (loss) | 553 | 337 | (5,163) | ||||||
NON-INTEREST EXPENSE | |||||||||
Salaries and employee benefits | 1,245 | 1,227 | 1,260 | ||||||
Occupancy and equipment | 199 | 193 | 196 | ||||||
Data processing and communication | 182 | 179 | 794 | ||||||
Professional fees | 101 | 94 | 107 | ||||||
Directors' fees | 114 | 116 | 115 | ||||||
ATM and debit card | 22 | 17 | 69 | ||||||
Foreclosed assets, net | 89 | 7 | 8 | ||||||
Advertising and marketing | 39 | 17 | 38 | ||||||
Other | 207 | 188 | 204 | ||||||
Total non-interest expense | 2,198 | 2,038 | 2,791 | ||||||
Income (loss) before income tax expense (benefit) | 720 | 771 | (5,956) | ||||||
Income tax expense (benefit) | 134 | 145 | (1,267) | ||||||
NET INCOME (LOSS) | $ | 586 | $ | 626 | $ | (4,689) | |||
Earnings (loss) per share: | |||||||||
Basic | $ | 0.16 | $ | 0.16 | $ | (1.15) | |||
Diluted | 0.16 | 0.16 | (1.15) | ||||||
CATALYST BANCORP, INC. AND SUBSIDIARY | ||||||||||||
SELECTED FINANCIAL DATA | ||||||||||||
Three Months Ended | ||||||||||||
(Dollars in thousands) | 3/31/2025 | 12/31/2024 | 3/31/2024 | |||||||||
EARNINGS DATA | ||||||||||||
Total interest income | $ | 3,374 | $ | 3,511 | $ | 3,155 | ||||||
Total interest expense | 1,009 | 1,039 | 1,062 | |||||||||
Net interest income | 2,365 | 2,472 | 2,093 | |||||||||
Provision for credit losses | - | - | 95 | |||||||||
Total non-interest income (loss) | 553 | 337 | (5,163) | |||||||||
Total non-interest expense | 2,198 | 2,038 | 2,791 | |||||||||
Income tax expense (benefit) | 134 | 145 | (1,267) | |||||||||
Net income (loss) | $ | 586 | $ | 626 | $ | (4,689) | ||||||
AVERAGE BALANCE SHEET DATA | ||||||||||||
Total loans | $ | 166,145 | $ | 167,187 | $ | 144,428 | ||||||
Total interest-earning assets | 246,690 | 251,058 | 269,835 | |||||||||
Total assets | 268,232 | 272,443 | 286,708 | |||||||||
Total interest-bearing deposits | 149,979 | 142,149 | 146,201 | |||||||||
Total interest-bearing liabilities | 159,552 | 160,812 | 174,192 | |||||||||
Total deposits | 177,106 | 170,991 | 174,656 | |||||||||
Total shareholders' equity | 80,426 | 80,988 | 82,667 | |||||||||
SELECTED RATIOS | ||||||||||||
Return on average assets | 0.89 | % | 0.91 | % | (6.58) | % | ||||||
Return on average equity | 2.96 | 3.08 | (22.81) | |||||||||
Efficiency ratio | 75.31 | 72.54 | (90.93) | |||||||||
Net interest margin(TE) | 3.89 | 3.92 | 3.12 | |||||||||
Average equity to average assets | 29.98 | 29.73 | 28.83 | |||||||||
Common equity Tier 1 capital ratio(1) | 46.95 | 45.81 | 52.09 | |||||||||
Tier 1 leverage capital ratio(1) | 29.45 | 28.73 | 26.84 | |||||||||
Total risk-based capital ratio(1) | 48.20 | 47.06 | 53.34 | |||||||||
NON-FINANCIAL DATA | ||||||||||||
Total employees (full-time equivalent) | 49 | 49 | 47 | |||||||||
Common shares issued and outstanding, end of period | 4,205,201 | 4,278,150 | 4,558,329 | |||||||||
(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 | ||||||||||||
(Dollars in thousands) | 3/31/2025 | 12/31/2024 | 3/31/2024 | |||||||||
ALLOWANCE FOR CREDIT LOSSES | ||||||||||||
Loans: | ||||||||||||
Beginning balance | $ | 2,522 | $ | 2,414 | $ | 2,124 | ||||||
Provision for credit losses | 17 | 110 | 42 | |||||||||
Charge-offs | (53) | (28) | (123) | |||||||||
Recoveries | 14 | 26 | 25 | |||||||||
Net (charge-offs) recoveries | (39) | (2) | (98) | |||||||||
Ending balance | $ | 2,500 | $ | 2,522 | $ | 2,068 | ||||||
Unfunded commitments: | ||||||||||||
Beginning balance | $ | 121 | $ | 231 | $ | 257 | ||||||
Provision for (reversal of) credit losses on | (17) | (110) | 53 | |||||||||
Ending balance | $ | 104 | $ | 121 | $ | 310 | ||||||
Total provision for credit losses | $ | - | $ | - | $ | 95 | ||||||
CREDIT QUALITY(1) | ||||||||||||
Non-accruing loans | $ | 1,554 | $ | 1,567 | $ | 1,453 | ||||||
Accruing loans 90 days or more past due | 91 | 64 | 29 | |||||||||
Total non-performing loans | 1,645 | 1,631 | 1,482 | |||||||||
Foreclosed assets | 77 | 194 | 237 | |||||||||
Total non-performing assets | $ | 1,722 | $ | 1,825 | $ | 1,719 | ||||||
Total non-performing loans to total loans | 0.99 | % | 0.98 | % | 1.03 | % | ||||||
Total non-performing assets to total assets | 0.63 | 0.66 | 0.61 | |||||||||
(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.
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