Catalyst Bancorp, Inc. Announces 2025 Second Quarter Results
Rhea-AI Summary
Catalyst Bancorp (NASDAQ: CLST) reported Q2 2025 net income of $521,000, down from $586,000 in Q1 2025. The bank showed modest growth with total loans increasing to $167.6 million, up $1.5 million (1%) from Q1, while deposits grew to $182.2 million, up $1.6 million (1%).
Key financial metrics include a net interest margin of 3.98% (up 9 basis points), and an allowance for credit losses of $2.4 million (1.45% of total loans). The company maintained strong capital levels with consolidated shareholders' equity at $80.8 million (29.5% of total assets) and continued its share repurchase program, buying back 62,385 shares at an average cost of $11.91 per share.
Non-performing assets remained stable at $1.8 million (0.64% of total assets), with 99% of non-performing loans in residential mortgages.Positive
- Net interest margin improved to 3.98%, up 9 basis points from previous quarter
- Strong capital position with shareholders' equity at 29.5% of total assets
- Loan growth of $1.5 million and deposit growth of $1.6 million quarter-over-quarter
- Low non-performing assets ratio at 0.64% of total assets
Negative
- Net income decreased to $521,000 from $586,000 in previous quarter
- Non-interest income declined 38% quarter-over-quarter to $344,000
- Net loan charge-offs increased slightly to $42,000 from $39,000 in previous quarter
News Market Reaction – CLST
On the day this news was published, CLST declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
"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
(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
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
At June 30, 2025, the allowance for credit losses on loans totaled
Deposits
Total deposits were
(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
Total public fund deposits amounted to
Capital and Share Repurchases
At June 30, 2025 and March 31, 2025, consolidated shareholders' equity totaled
The Company repurchased 62,385 shares of its common stock at an average cost per share of
Net Interest Income
The net interest margin for the second quarter of 2025 was
Net interest income for the second quarter of 2025 was
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
Three Months Ended | ||||||||||||||||||
6/30/2025 | 3/31/2025 | |||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Average | Interest | Average | ||||||||||||
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 |
Non-interest Income
Non-interest income for the second quarter of 2025 totaled
Non-interest Expense
Non-interest expense for the second quarter of 2025 totaled
Foreclosed assets expense for the second quarter of 2025 included a write-down on foreclosed assets of
Other non-interest expense totaled
About Catalyst Bancorp, Inc.
Catalyst Bancorp, Inc. (Nasdaq: CLST) is a
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
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SOURCE Catalyst Bancorp, Inc.
FAQ
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