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.

(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
[phone]

SOURCE Catalyst Bancorp, Inc.