Catalyst Bancorp, Inc. Announces 2025 Second Quarter Results

OPELOUSAS, La., July 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 $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.

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.

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.

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.

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.