Catalyst Bancorp, Inc. Announces 2024 Fourth Quarter Results

Rhea-AI Summary

Catalyst Bancorp (NASDAQ: CLST) reported Q4 2024 net income of $626,000, a 40% increase from Q3 2024's $447,000. The loan portfolio grew by a record $22.2 million (15%) year-over-year, reaching $167.1 million by December 31, 2024.

Key Q4 metrics include: total deposits increased 11% to $185.7 million; net interest margin improved to 3.92%; non-performing assets ratio was 0.66%; and the allowance for loan losses stood at 1.51% of total loans. The company maintained a strong capital position with consolidated shareholders' equity at 29.0% of total assets.

During Q4, CLST repurchased 120,977 shares at an average cost of $11.70 per share. Since January 2023, the company has repurchased approximately 19% of originally issued shares at an average cost of $11.93 per share.

Positive

• Net income increased 40% quarter-over-quarter to $626,000
• Record annual loan growth of $22.2 million (15%)
• Total deposits increased 11% to $185.7 million
• Strong capital position with equity at 29.0% of total assets
• Net interest margin improved to 3.92% from 3.86%
• Non-interest expense decreased 10% quarter-over-quarter

Negative

• Non-performing assets increased 13% to $1.8 million
• Net unrealized losses on available-for-sale securities increased to $4.5 million from $3.4 million
• Non-interest income decreased by $283,000 quarter-over-quarter

OPELOUSAS, La., Jan. 23, 2025 /PRNewswire/ -- Catalyst Bancorp, Inc. (Nasdaq: "CLST") (the "Company"), the parent company for Catalyst Bank (the "Bank") (www.catalystbank.com), reported net income of $626,000 for the fourth quarter of 2024, up $179,000, or 40%, compared to net income of $447,000 for the third quarter of 2024.

"Our loan growth momentum continued during the fourth quarter," said Joe Zanco, President and Chief Executive Officer of the Company and Bank. "For the year, the loan portfolio increased a record $22.2 million, or 15%.  I'm incredibly proud of how effectively our team worked together to fuel the expansion of local businesses."

"Given our incredibly strong capital base," continued Zanco, "we are well positioned to continue our growth as the South Louisiana economy gains momentum."

Loans

Loans totaled $167.1 million at December 31, 2024, up $1.2 million, or less than 1%, from September 30, 2024. The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.

(Dollars in thousands)		12/31/2024			9/30/2024			Change
Real estate loans
One- to four-family residential		$	81,097		$	81,433		$	(336)		-	%
Commercial real estate			22,108			22,704			(596)		(3)
Construction and land			32,941			30,310			2,631		9
Multi-family residential			2,570			2,622			(52)		(2)
Total real estate loans			138,716			137,069			1,647		1
Other loans
Commercial and industrial			26,439			26,507			(68)		-	%
Consumer			1,921			2,306			(385)		(17)
Total other loans			28,360			28,813			(453)		(2)
Total loans		$	167,076		$	165,882		$	1,194		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)		12/31/2024			9/30/2024			Change
Commercial real estate
Retail		$	4,005		$	4,154		$	(149)		(3.6)	%
Hospitality			3,460			3,594			(134)		(3.7)
Restaurants			1,091			1,112			(21)		(1.9)
Oilfield services			402			411			(9)		(2.2)
Other non-owner occupied			2,658			2,780			(122)		(4.4)
Other owner occupied			10,492			10,653			(161)		(1.5)
Total commercial real estate		$	22,108		$	22,704		$	(596)		(2.6)
Construction and land
Multi-family residential		$	10,031		$	8,353		$	1,678		20.1	%
Health service facilities			7,139			7,073			66		0.9
Hospitality			2,716			2,716			-		-
Retail			5,106			3,339			1,767		52.9
Other commercial construction and land			4,364			4,846			(482)		(9.9)
Consumer residential construction and land			3,585			3,983			(398)		(10.0)
Total construction and land		$	32,941		$	30,310		$	2,631		8.7
Commercial and industrial
Oilfield services		$	14,823		$	14,010		$	813		5.8	%
Industrial equipment			2,831			3,882			(1,051)		(27.1)
Professional services			3,127			2,910			217		7.5
Other commercial and industrial			5,658			5,705			(47)		(0.8)
Total commercial and industrial loans		$	26,439		$	26,507		$	(68)		(0.3)

 

Credit Quality and Allowance for Credit Losses

At December 31, 2024, non-performing assets ("NPAs") totaled $1.8 million, up $214,000, or 13%, from $1.6 million at September 30, 2024 primarily due to an increase in non-accruing residential loans. The ratio of NPAs to total assets was 0.66% and 0.57% at December 31 and September 30, 2024, respectively. Non-performing loans ("NPLs") comprised 0.98% and 0.87% of total loans at December 31 and September 30, 2024, respectively. At December 31 and September 30, 2024, 98% of total NPLs were one- to four-family residential mortgage loans.

At December 31, 2024, the allowance for loan losses totaled $2.5 million, or 1.51% of total loans, compared to $2.4 million, or 1.46% of total loans, at September 30, 2024. A portion of the allowance for credit losses on unfunded lending commitments was transferred to the allowance for loan losses during the fourth quarter of 2024. The allowance for credit losses on unfunded lending commitments totaled $121,000 at December 31, 2024, down $110,000 from September 30, 2024. The provision for credit losses, inclusive of the provision for unfunded commitments, for the fourth quarter of 2024 was zero, compared to $337,000 for the third quarter of 2024. Net loan charge-offs totaled $2,000 during the fourth quarter of 2024, compared to net charge-offs of $131,000 for the third quarter of 2024. Net loan charge-offs during the third quarter of 2024 were primarily related to three commercial lines of credit.

Investment Securities

Total investment securities were $42.2 million, or 15% of total assets, at December 31, 2024, down $3.5 million, or 8%, compared to September 30, 2024, primarily due to pay-downs and maturities. Net unrealized losses on available-for-sale securities totaled $4.5 million at December 31, 2024, compared to net unrealized losses of $3.4 million at September 30, 2024.

At December 31, 2024 the amortized cost and fair value of pledged investment securities totaled $15.2 million and $14.2 million, respectively. These securities are pledged as collateral for public fund deposits. At September 30, 2024, the amortized cost and fair value of pledged investment securities totaled $35.3 million and $31.7 million, respectively. During the fourth quarter of 2024, the Bank's $20.0 million Bank Term Funding Program ("BTFP") advance was paid off, which released the pledges on securities with total amortized cost and fair value of $21.0 million and $18.0 million, respectively, at September 30, 2024.

Deposits

Total deposits were $185.7 million at December 31, 2024, up $18.2 million, or 11%, from September 30, 2024, largely due to a seasonal increase in public funds. 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 90% at December 31, 2024, compared to 99% at September 30, 2024.

(Dollars in thousands)		12/31/2024			9/30/2024			Change
Non-interest-bearing demand deposits		$	28,281		$	27,904		$	377		1	%
Interest-bearing demand deposits			48,334			33,751			14,583		43
Money market			10,729			13,372			(2,643)		(20)
Savings			37,639			36,798			841		2
Certificates of deposit			60,691			55,611			5,080		9
Total deposits		$	185,674		$	167,436		$	18,238		11

 

Total public fund deposits amounted to $35.6 million, or 19% of total deposits, at December 31, 2024, compared to $21.0 million, or 13% of total deposits, at September 30, 2024. At December 31, 2024, approximately 83% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits from municipalities within our market. The full amount of our public fund deposits in excess of the FDIC's insurance limit are secured by pledging investment securities and portions of a custodial letter of credit from the Federal Home Loan Bank of Dallas.

Capital and Share Repurchases

At December 31 and September 30, 2024, consolidated shareholders' equity totaled $80.2 million, or 29.0% of total assets, and $81.7 million, or 29.1% of total assets, respectively.

The Company repurchased 120,977 shares of its common stock at an average cost per share of $11.70 during the fourth quarter of 2024, compared to 79,400 shares at an average cost per share of $11.75 during the third quarter of 2024. Under the Company's November 2024 Repurchase Plan, 187,150 shares of the Company's common stock were available for repurchase at December 31, 2024. Since the announcement of our first share repurchase plan on January 26, 2023 and through December 31, 2024, the Company has repurchased a total of 1,011,850 shares of its common stock, or approximately 19% of the common shares originally issued, at an average cost per share of $11.93. At December 31, 2024, the Company had common shares outstanding of 4,278,150.

Net Interest Income

The net interest margin for the fourth quarter of 2024 was 3.92%, up six basis points compared to the prior quarter. For the fourth quarter of 2024, the average yield on interest-earning assets was 5.57%, down three basis points from the prior quarter, while the average rate paid on interest-bearing liabilities was 2.57%, down nine basis points from the third quarter of 2024.

Net interest income for the fourth quarter of 2024 was $2.5 million, down $60,000, or 2%, compared to the third quarter of 2024. Total interest income was down $160,000, or 4%, while total interest expense decreased $100,000, or 9%, in the fourth quarter of 2024 compared to the prior quarter. The changes in interest income and interest expense were largely due to the use of interest-earning cash to pay-off of the Bank's $20.0 million BTFP advance during the fourth quarter of 2024.

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
		12/31/2024									9/30/2024
(Dollars in thousands)		Average Balance			Interest			Average Yield/ Rate(TE)			Average Balance			Interest			Average Yield/ Rate(TE)
INTEREST-EARNING ASSETS
Loans receivable(1)		$	167,187		$	2,814		6.70	%		$	161,410		$	2,717		6.70	%
Investment securities(2)			47,764			273		2.30				48,517			255		2.11
Other interest earning assets			36,107			424		4.66				51,142			699		5.45
Total interest-earning assets		$	251,058		$	3,511		5.57			$	261,069		$	3,671		5.60
INTEREST-BEARING LIABILITIES
Demand deposits, money market, and savings accounts		$	85,118		$	394		1.84	%		$	85,164		$	382		1.78	%
Certificates of deposit			57,031			465		3.24				55,910			448		3.19
Total interest-bearing deposits			142,149			859		2.40				141,074			830		2.34
Borrowings			18,663			180		3.85				29,502			309		4.17
Total interest-bearing liabilities		$	160,812		$	1,039		2.57			$	170,576		$	1,139		2.66
Net interest-earning assets		$	90,246								$	90,493
Net interest income; average interest rate spread					$	2,472		3.00	%					$	2,532		2.94	%
Net interest margin(3)								3.92									3.86
(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

For the fourth quarter of 2024, non-interest income totaled $337,000, down $283,000 from $620,000 for the third quarter of 2024. During the third quarter of 2024, the Company recognized as income a $280,000 Bank Enterprise Award ("BEA") Program grant from the Community Development Financial Institution ("CDFI") Fund.

Non-interest Expense

Non-interest expense for the fourth quarter of 2024 totaled $2.0 million, down $222,000, or 10%, compared to the third quarter of 2024.

Data processing and communication expense totaled $179,000 for the fourth quarter of 2024, down $59,000, or 25%, compared to the third quarter of 2024. The decline in this expense was primarily driven by our transition to a new internet provider and a new contract for our loan document management solution.

Professional fees totaled $94,000 for the fourth quarter of 2024, down $57,000, or 38%, from the prior quarter. During the third quarter of 2024, professional fees associated with obtaining the BEA Program grant totaled $42,000.

Other noninterest expense totaled $167,000 for the fourth quarter of 2024, down $92,000, or 36%, from the prior quarter primarily due to declines in loan collection related expenses and lower fraud losses.

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 $276.7 million in assets at December 31, 2024. 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, 2023, 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)		12/31/2024			9/30/2024			12/31/2023
ASSETS
Non-interest-bearing cash		$	4,076		$	3,625		$	3,654
Interest-bearing cash and due from banks			40,219			42,128			15,357
Total cash and cash equivalents			44,295			45,753			19,011
Investment securities:
Securities available-for-sale, at fair value			28,712			32,196			70,540
Securities held-to-maturity			13,447			13,450			13,461
Loans receivable, net of unearned income			167,076			165,882			144,920
Allowance for loan losses			(2,522)			(2,414)			(2,124)
Loans receivable, net			164,554			163,468			142,796
Accrued interest receivable			851			815			906
Foreclosed assets			194			173			60
Premises and equipment, net			6,085			6,135			6,072
Stock in correspondent banks, at cost			1,961			1,939			1,878
Bank-owned life insurance			14,489			14,370			14,026
Other assets			2,109			2,318			2,182
TOTAL ASSETS		$	276,697		$	280,617		$	270,932
LIABILITIES
Deposits:
Non-interest-bearing		$	28,281		$	27,904		$	28,183
Interest-bearing			157,393			139,532			137,439
Total deposits			185,674			167,436			165,622
Borrowings			9,558			29,513			19,378
Other liabilities			1,261			2,001			1,373
TOTAL LIABILITIES			196,493			198,950			186,373
SHAREHOLDERS' EQUITY
Common stock			43			44			48
Additional paid-in capital			39,561			40,847			45,020
Unallocated common stock held by benefit plans			(5,702)			(5,777)			(6,221)
Retained earnings			49,860			49,234			52,949
Accumulated other comprehensive income (loss)			(3,558)			(2,681)			(7,237)
TOTAL SHAREHOLDERS' EQUITY			80,204			81,667			84,559
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	276,697		$	280,617		$	270,932

 

CATALYST BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
		Three Months Ended									Year Ended
(Dollars in thousands)		12/31/2024			9/30/2024			12/31/2023			12/31/2024			12/31/2023
INTEREST INCOME
Loans receivable, including fees		$	2,814		$	2,717		$	2,066		$	10,128		$	7,238
Investment securities			273			255			400			1,063			1,643
Other			424			699			137			2,671			780
Total interest income			3,511			3,671			2,603			13,862			9,661
INTEREST EXPENSE
Deposits			859			830			545			3,229			1,637
Borrowings			180			309			114			1,088			319
Total interest expense			1,039			1,139			659			4,317			1,956
Net interest income			2,472			2,532			1,944			9,545			7,705
Provision for credit losses			-			337			128			531			128
Net interest income after provision for credit losses			2,472			2,195			1,816			9,014			7,577
NON-INTEREST INCOME
Service charges on deposit accounts			201			200			201			798			774
Bank-owned life insurance			119			118			109			463			409
Loss on sales of investment securities			-			-			(92)			(5,507)			(92)
Gain (loss) on disposals and sales of fixed assets			-			-			-			6			-
Federal community development grant			-			280			437			280			437
Other			17			22			17			120			61
Total non-interest income (loss)			337			620			672			(3,840)			1,589
NON-INTEREST EXPENSE
Salaries and employee benefits			1,227			1,200			1,149			4,830			4,671
Occupancy and equipment			193			193			193			765			802
Data processing and communication			179			238			236			1,349			911
Professional fees			94			151			140			469			486
Directors' fees			116			116			118			461			463
ATM and debit card			17			24			63			141			250
Foreclosed assets, net			7			33			5			74			72
Advertising and marketing			17			31			23			129			100
Franchise and shares tax			21			15			10			67			81
Other			167			259			185			872			743
Total non-interest expense			2,038			2,260			2,122			9,157			8,579
Income (loss) before income tax expense (benefit)			771			555			366			(3,983)			587
Income tax expense (benefit)			145			108			59			(894)			61
NET INCOME (LOSS)		$	626		$	447		$	307		$	(3,089)		$	526
Earnings (loss) per share:
Basic		$	0.16		$	0.11		$	0.08		$	(0.78)		$	0.12
Diluted			0.16			0.11			0.08			(0.78)			0.12

 

CATALYST BANCORP, INC. AND SUBSIDIARY
SELECTED FINANCIAL DATA
		Three Months Ended												Year Ended
(Dollars in thousands)		12/31/2024				9/30/2024				12/31/2023				12/31/2024				12/31/2023
EARNINGS DATA
Total interest income		$	3,511			$	3,671			$	2,603			$	13,862			$	9,661
Total interest expense			1,039				1,139				659				4,317				1,956
Net interest income			2,472				2,532				1,944				9,545				7,705
Provision for credit losses			-				337				128				531				128
Total non-interest income (loss)			337				620				672				(3,840)				1,589
Total non-interest expense			2,038				2,260				2,122				9,157				8,579
Income tax expense (benefit)			145				108				59				(894)				61
Net income (loss)		$	626			$	447			$	307			$	(3,089)			$	526
AVERAGE BALANCE SHEET DATA
Total loans		$	167,187			$	161,410			$	140,757			$	155,867			$	135,713
Total interest-earning assets			251,058				261,069				248,673				261,654				252,616
Total assets			272,443				282,440				261,695				281,817				266,693
Total interest-bearing deposits			142,149				141,074				134,181				143,250				136,321
Total interest-bearing liabilities			160,812				170,576				147,197				169,643				146,529
Total deposits			170,991				169,437				165,102				172,092				170,677
Total shareholders' equity			80,988				81,307				82,265				81,480				84,777
SELECTED RATIOS
Return on average assets			0.91	%			0.63	%			0.47	%			(1.10)	%			0.20	%
Return on average equity			3.08				2.18				1.49				(3.79)				0.62
Efficiency ratio			72.54				71.72				81.07				160.51				92.29
Net interest margin(TE)			3.92				3.86				3.12				3.65				3.06
Average equity to average assets			29.73				28.79				31.44				28.91				31.79
Common equity Tier 1 capital ratio(1)			45.81				45.71				52.34
Tier 1 leverage capital ratio(1)			28.73				27.43				31.67
Total risk-based capital ratio(1)			47.07				46.97				53.59
NON-FINANCIAL DATA
Total employees (full-time equivalent)			49				48				48
Common shares issued and outstanding, end of period			4,278,150				4,399,127				4,761,326
(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												Year Ended
(Dollars in thousands)		12/31/2024				9/30/2024				12/31/2023				12/31/2024				12/31/2023
ALLOWANCE FOR CREDIT LOSSES
Allowance for loan losses:
Beginning balance		$	2,414			$	2,215			$	2,036			$	2,124			$	1,807
CECL adoption impact			-				-				-				-				209
Provision for (reversal of) loan losses			110				330				151				667				87
Charge-offs			(28)				(184)				(76)				(392)				(102)
Recoveries			26				53				13				123				123
Net (charge-offs) recoveries			(2)				(131)				(63)				(269)				21
Ending balance		$	2,522			$	2,414			$	2,124			$	2,522			$	2,124
Allowance for unfunded commitments:
Beginning balance			231				224				280				257				-
CECL adoption impact			-				-				-				-				216
Provision for (reversal of) losses on unfunded commitments			(110)				7				(23)				(136)				41
Ending balance		$	121			$	231			$	257			$	121			$	257
Total allowance for credit losses, end of period		$	2,643			$	2,645			$	2,381			$	2,643			$	2,381
Total provision for credit losses			-				337				128				531				128
CREDIT QUALITY(1)
Non-accruing loans		$	1,567			$	1,423			$	1,967
Accruing loans 90 days or more past due			64				15				24
Total non-performing loans			1,631				1,438				1,991
Foreclosed assets			194				173				60
Total non-performing assets		$	1,825			$	1,611			$	2,051
Total non-performing loans to total loans			0.98	%			0.87	%			1.37	%
Total non-performing assets to total assets			0.66				0.57				0.76
(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

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SOURCE Catalyst Bancorp, Inc.

FAQ

What was Catalyst Bancorp's (CLST) net income for Q4 2024?

Catalyst Bancorp reported net income of $626,000 for Q4 2024, up $179,000 or 40% from Q3 2024's $447,000.

How much did CLST's loan portfolio grow in 2024?

CLST's loan portfolio grew by $22.2 million, or 15%, during 2024, reaching $167.1 million by December 31, 2024.

What was CLST's share repurchase activity in Q4 2024?

CLST repurchased 120,977 shares at an average cost of $11.70 per share during Q4 2024.

What was CLST's deposit growth in Q4 2024?

Total deposits increased by $18.2 million, or 11%, to $185.7 million in Q4 2024 compared to Q3 2024.

What was CLST's net interest margin in Q4 2024?

CLST's net interest margin for Q4 2024 was 3.92%, up six basis points from the previous quarter.