Catalyst Bancorp, Inc. Announces 2025 Third Quarter Results

Rhea-AI Summary

Catalyst Bancorp (Nasdaq: CLST) reported net income of $489,000 for Q3 2025, down from $521,000 in Q2 2025. Loans totaled $164.8 million at September 30, 2025, a 2% decline from June 30, 2025, driven by a $4.6 million construction loan pay-off and pay-downs on a downgraded commercial relationship.

Investment securities rose to $59.8 million (up $15.6 million, +35% QoQ) after purchases of variable- and fixed-rate mortgage-backed securities. Total deposits were $186.4 million (+2% QoQ). Share repurchases continued, with 13,212 shares bought in Q3 and total repurchases of 1,160,396 shares (~22% of originally issued) through September 30, 2025.

Positive

• Investment securities increased by 35% QoQ to $59.8M
• Company repurchased 1,160,396 shares (~22% of originally issued) through 9/30/2025

Negative

• Net income declined to $489,000 in Q3 2025 from $521,000 in Q2 2025

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OPELOUSAS, La., Oct. 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 $489,000 for the third quarter of 2025, compared to net income of $521,000 for the second quarter of 2025.

"Our team has done a good job attracting new deposit customers in 2025," said Joe Zanco, President and Chief Executive Officer of the Company and Bank. "While loan growth has been slow, we are beginning to see signs of increased economic activity, which we expect will spur loan growth opportunities in the coming quarters."

Loans

Loans totaled $164.8 million at September 30, 2025, down $2.8 million, or 2%, from June 30, 2025. The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.

(Dollars in thousands)		9/30/2025			6/30/2025			Change
Real estate loans
One- to four-family residential		$	78,373		$	80,195		$	(1,822)		(2)	%
Commercial real estate			33,679			33,976			(297)		(1)
Construction and land			18,850			20,650			(1,800)		(9)
Multi-family residential			5,367			5,432			(65)		(1)
Total real estate loans			136,269			140,253			(3,984)		(3)
Other loans
Commercial and industrial			25,665			25,035			630		3	%
Consumer			2,833			2,281			552		24
Total other loans			28,498			27,316			1,182		4
Total loans		$	164,767		$	167,569		$	(2,802)		(2)

In the third quarter of 2025, a $4.6 million construction loan paid-off and we received $1.0 million of total pay-downs on a commercial and industrial relationship that was downgraded to substandard during the first quarter of 2025. As of September 30, 2025, the classified commercial and industrial relationship totaled $2.1 million and all loans within the relationship were current and performing. Pay-offs and pay-downs during the third quarter of 2025 were partially offset by growth within the health and oilfield services segments of our loan portfolio.

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)		9/30/2025			6/30/2025			Change
Commercial real estate
Retail		$	9,725		$	9,739		$	(14)		(0)	%
Hospitality			5,742			5,849			(107)		(2)
Health service facilities			3,325			3,345			(20)		(1)
Restaurants			1,095			1,049			46		4
Oilfield services			374			384			(10)		(3)
Other non-owner occupied			2,380			2,648			(268)		(10)
Other owner occupied			11,038			10,962			76		1
Total commercial real estate		$	33,679		$	33,976		$	(297)		(1)
Construction and land
Multi-family residential		$	4,692		$	8,997		$	(4,305)		(48)	%
Health service facilities			9,695			7,649			2,046		27
Other commercial construction and land			1,772			1,782			(10)		(1)
Consumer residential construction and land			2,691			2,222			469		21
Total construction and land		$	18,850		$	20,650		$	(1,800)		(9)
Commercial and industrial
Oilfield services		$	9,532		$	8,081		$	1,451		18	%
Industrial equipment			7,865			8,453			(588)		(7)
Professional services			3,187			3,146			41		1
Other commercial and industrial			5,081			5,355			(274)		(5)
Total commercial and industrial loans		$	25,665		$	25,035		$	630		3

Credit Quality and Allowance for Credit Losses

At September 30, 2025, non-performing assets ("NPAs") totaled $1.9 million, compared to $1.8 million at June 30, 2025. The ratio of NPAs to total assets was 0.67% and 0.64% at September 30 and June 30, 2025, respectively. Non-performing loans ("NPLs") comprised 1.11% and 1.00% of total loans at September 30 and June 30, 2025, respectively. At September 30 and June 30, 2025, 99% of total NPLs were one- to four-family residential mortgage loans.

At September 30 and June 30, 2025, the allowance for credit losses on loans totaled $2.4 million, or 1.45% of total loans. For the third quarter of 2025, we recorded a reversal of provision for credit losses of $36,000 largely due to a reduction in expected credit losses on individually evaluated loans and a decline in total loans. Net loan charge-offs totaled $2,000 during the third quarter of 2025, compared to net charge-offs of $42,000 during the second quarter of 2025. Net loan charge-offs during 2025 have been primarily related to residential mortgage loans and overdrawn deposit accounts.

Investment Securities

Total investment securities were $59.8 million, or 21% of total assets, at September 30, 2025, up $15.6 million, or 35%, compared to June 30, 2025. During the third quarter of 2025, we purchased $15.1 million of variable-rate and $1.1 million of fixed-rate government-sponsored mortgage-backed securities. The weighted average yield of the securities purchased during the third quarter was 5.17% at September 30, 2025.

Deposits

Total deposits were $186.4 million at September 30, 2025, up $4.2 million, or 2%, from June 30, 2025. Total deposits averaged $179.8 million during the third quarter of 2025, compared to $179.4 million during the second quarter of 2025. The increase in deposits was primarily attributable to our high-yield account specials. The competitive offerings have been successful at attracting new deposits and deepening relationships with existing customers. The following table sets forth the composition of the Company's deposits as of the dates indicated.

(Dollars in thousands)		9/30/2025			6/30/2025			Change
Non-interest-bearing demand deposits		$	27,617		$	31,155		$	(3,538)		(11)	%
Interest-bearing demand deposits			35,748			35,307			441		1
Money market			11,783			9,437			2,346		25
Savings			52,152			51,001			1,151		2
Certificates of deposit			59,072			55,311			3,761		7
Total deposits		$	186,372		$	182,211		$	4,161		2

The ratio of the Company's total loans to total deposits was 88% and 92% at September 30 and June 30 2025, respectively.

Total public fund deposits amounted to $30.5 million, or 16% of total deposits, at September 30, 2025, compared to $29.0 million at June 30, 2025. At September 30 and June 30, 2025, approximately 64% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits.

Capital and Share Repurchases

At September 30 and June 30, 2025, consolidated shareholders' equity totaled $81.6 million, or 28.7% of total assets, and $80.8 million, or 29.5% of total assets, respectively.

The Company repurchased 13,212 shares of its common stock at an average cost per share of $12.93 during the third quarter of 2025, compared to 62,385 shares at an average cost per share of $11.91 during the second quarter of 2025. Under the Company's November 2024 Repurchase Plan, 38,604 shares of the Company's common stock were available for repurchase at September 30, 2025. Since the announcement of our first share repurchase plan on January 26, 2023 and through September 30, 2025, the Company has repurchased a total of 1,160,396 shares of its common stock, or approximately 22% of the common shares originally issued, at an average cost per share of $11.94. At September 30, 2025, the Company had common shares outstanding of 4,129,604.

Net Interest Income

The net interest margin for the third quarter of 2025 was 3.88%, down ten basis points compared to the prior quarter. For the third quarter of 2025, the average yield on interest-earning assets was 5.56%, down two basis points from the prior quarter, and the average rate paid on interest-bearing liabilities was 2.62%, up 11 basis points from the second quarter of 2025.

Net interest income for the third quarter of 2025 was $2.5 million, down $18,000, or 1%, compared to the second quarter of 2025. Total interest income was up $52,000, or 2%, in the third quarter of 2025 compared to the prior quarter largely due to an increase in income on investment securities and loans. Total interest expense increased $70,000, or 7%, in the third quarter of 2025 compared to the prior quarter. The increase in interest expense was mainly due to the full quarter impact of growth in our high-yield savings account balances during the second quarter of 2025.

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
		9/30/2025									6/30/2025
(Dollars in thousands)		Average Balance			Interest			Average Yield/ Rate(TE)			Average Balance			Interest			Average Yield/ Rate(TE)
INTEREST-EARNING ASSETS
Loans receivable(1)		$	167,032		$	2,816		6.69	%		$	167,627		$	2,792		6.68	%
Investment securities(2)			51,731			345		2.71				48,285			294		2.49
Other interest earning assets			32,241			352		4.33				33,225			375		4.53
Total interest-earning assets		$	251,004		$	3,513		5.56			$	249,137		$	3,461		5.58
INTEREST-BEARING LIABILITIES
Demand deposits, money market, and savings accounts		$	94,308		$	529		2.22	%		$	92,088		$	466		2.03	%
Certificates of deposit			56,113			454		3.21				57,018			459		3.23
Total interest-bearing deposits			150,421			983		2.59				149,106			925		2.49
Borrowings			10,699			80		2.97				9,619			68		2.84
Total interest-bearing liabilities		$	161,120		$	1,063		2.62			$	158,725		$	993		2.51
Net interest-earning assets		$	89,884								$	90,412
Net interest income; average interest rate spread					$	2,450		2.94	%					$	2,468		3.07	%
Net interest margin(3)								3.88									3.98

(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 third quarter of 2025 totaled $315,000, down $29,000, or 8%, compared to the second quarter of 2025. During the third quarter of 2025, we corrected an immaterial technical error related to fees charged for the use of foreign ATMs and refunded customers all fees that were applied in error. The refunded fees were the primary reason for the decrease in income from service charges on deposit accounts when comparing the third quarter to the second quarter of 2025.

Non-interest Expense

Non-interest expense for the third quarter of 2025 totaled $2.2 million, up $24,000, or 1%, compared to the second quarter of 2025.

Salaries and employee benefits expense for the third quarter of 2025 totaled $1.3 million, up $50,000, or 4%, from the prior quarter. New grants of share-based compensation in June 2025 and additional payroll tax expense for vesting of existing stock awards accounted for approximately half of the increase. 

Professional fees for the third quarter of 2025 totaled $91,000, down $23,000, or 20%, from the prior quarter.  During the second quarter of 2025 the Company incurred additional professional fees for our annual shareholders meeting and related materials.

Other non-interest expense totaled $211,000 for the third quarter of 2025, down $23,000, or 10%, from the prior quarter primarily due to a decline 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 $283.8 million in assets at September 30, 2025. Catalyst Bank, formerly St. Landry Homestead Federal Savings Bank, has been in operation in the Acadiana region of south-central Louisiana since 1922. 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)		9/30/2025			6/30/2025			12/31/2024			9/30/2024
ASSETS
Non-interest-bearing cash		$	4,515		$	4,024		$	4,076		$	3,625
Interest-bearing cash and due from banks			32,756			36,032			40,219			42,128
Total cash and cash equivalents			37,271			40,056			44,295			45,753
Investment securities:
Securities available-for-sale, at fair value			44,853			29,294			28,712			32,196
Securities held-to-maturity			14,945			14,948			13,447			13,450
Loans receivable, net of unearned income			164,767			167,569			167,076			165,882
Allowance for credit losses			(2,397)			(2,431)			(2,522)			(2,414)
Loans receivable, net			162,370			165,138			164,554			163,468
Accrued interest receivable			861			883			851			815
Foreclosed assets			76			80			194			173
Premises and equipment, net			5,954			5,977			6,085			6,135
Stock in correspondent banks, at cost			939			825			1,961			1,939
Bank-owned life insurance			14,849			14,726			14,489			14,370
Other assets			1,716			1,858			2,109			2,318
TOTAL ASSETS		$	283,834		$	273,785		$	276,697		$	280,617
LIABILITIES
Deposits:
Non-interest-bearing		$	27,617		$	31,155		$	28,281		$	27,904
Interest-bearing			158,755			151,056			157,393			139,532
Total deposits			186,372			182,211			185,674			167,436
Borrowings			14,693			9,647			9,558			29,513
Other liabilities			1,184			1,128			1,261			2,001
TOTAL LIABILITIES			202,249			192,986			196,493			198,950
SHAREHOLDERS' EQUITY
Common stock			41			41			43			44
Additional paid-in capital			37,997			38,259			39,561			40,847
Unallocated common stock held by benefit plans			(5,260)			(5,596)			(5,702)			(5,777)
Retained earnings			51,456			50,967			49,860			49,234
Accumulated other comprehensive loss			(2,649)			(2,872)			(3,558)			(2,681)
TOTAL SHAREHOLDERS' EQUITY			81,585			80,799			80,204			81,667
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	283,834		$	273,785		$	276,697		$	280,617

 

CATALYST BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
		Three Months Ended									Nine Months Ended
(Dollars in thousands)		9/30/2025			6/30/2025			9/30/2024			9/30/2025			9/30/2024
INTEREST INCOME
Loans receivable, including fees		$	2,816		$	2,792		$	2,717		$	8,346		$	7,314
Investment securities			345			294			255			914			790
Cash and due from banks			345			353			678			1,039			2,184
Other			7			22			21			49			63
Total interest income			3,513			3,461			3,671			10,348			10,351
INTEREST EXPENSE
Deposits			983			925			830			2,849			2,370
Borrowings			80			68			309			216			908
Total interest expense			1,063			993			1,139			3,065			3,278
Net interest income			2,450			2,468			2,532			7,283			7,073
Provision for (reversal of) credit losses			(36)			-			337			(36)			531
Net interest income after provision for (reversal of) credit losses			2,486			2,468			2,195			7,319			6,542
NON-INTEREST INCOME (LOSS)
Service charges on deposit accounts			172			202			200			571			597
Bank-owned life insurance			123			119			118			360			344
Loss on sales of investment securities			-			-			-			-			(5,507)
Other income on foreclosed assets			-			-			-			216			-
(Loss) gain on sale of fixed assets			(1)			-			-			(1)			6
Federal community development grant			-			-			280			-			280
Other			21			23			22			66			103
Total non-interest income (loss)			315			344			620			1,212			(4,177)
NON-INTEREST EXPENSE
Salaries and employee benefits			1,312			1,262			1,200			3,819			3,603
Occupancy and equipment			220			208			193			627			572
Data processing and communication			179			176			238			537			1,170
Professional fees			91			114			151			306			375
Directors' fees			123			117			116			354			345
ATM and debit card			24			29			24			75			124
Foreclosed assets, net			7			18			33			114			67
Advertising and marketing			35			20			31			94			112
Other			211			234			274			652			751
Total non-interest expense			2,202			2,178			2,260			6,578			7,119
Income (loss) before income tax expense (benefit)			599			634			555			1,953			(4,754)
Income tax expense (benefit)			110			113			108			357			(1,039)
NET INCOME (LOSS)		$	489		$	521		$	447		$	1,596		$	(3,715)
Earnings (loss) per share:
Basic		$	0.13		$	0.14		$	0.11		$	0.43		$	(0.93)
Diluted			0.13			0.14			0.11			0.43			(0.93)

 

CATALYST BANCORP, INC. AND SUBSIDIARY
SELECTED FINANCIAL DATA
		Three Months Ended												Nine Months Ended
(Dollars in thousands)		9/30/2025				6/30/2025				9/30/2024				9/30/2025				9/30/2024
EARNINGS DATA
Total interest income		$	3,513			$	3,461			$	3,671			$	10,348			$	10,351
Total interest expense			1,063				993				1,139				3,065				3,278
Net interest income			2,450				2,468				2,532				7,283				7,073
Provision for (reversal of) credit losses			(36)				-				337				(36)				531
Total non-interest income (loss)			315				344				620				1,212				(4,177)
Total non-interest expense			2,202				2,178				2,260				6,578				7,119
Income tax expense (benefit)			110				113				108				357				(1,039)
Net income (loss)		$	489			$	521			$	447			$	1,596			$	(3,715)
AVERAGE BALANCE SHEET DATA
Total loans		$	167,032			$	167,627			$	161,410			$	166,938			$	152,066
Total interest-earning assets			251,004				249,137				261,069				248,959				265,212
Total assets			272,987				270,788				282,440				270,686				284,964
Total interest-bearing deposits			150,421				149,106				141,074				149,837				143,619
Total interest-bearing liabilities			161,120				158,725				170,576				159,805				172,608
Total deposits			179,825				179,426				169,437				178,795				172,461
Total shareholders' equity			81,136				80,611				81,307				80,727				81,645
SELECTED RATIOS
Return on average assets			0.71	%			0.77	%			0.63	%			0.79	%			(1.74)	%
Return on average equity			2.39				2.59				2.18				2.64				(6.08)
Efficiency ratio			79.67				77.46				71.72				77.44				245.83
Net interest margin(TE)			3.88				3.98				3.86				3.92				3.56
Average equity to average assets			29.72				29.77				28.79				29.82				28.65
Common equity Tier 1 capital ratio(1)			43.95				43.72				45.74
Tier 1 leverage capital ratio(1)			27.58				27.56				27.43
Total risk-based capital ratio(1)			45.20				44.98				46.99
NON-FINANCIAL DATA
Total employees (full-time equivalent)			49				49				48
Common shares issued and outstanding, end of period			4,129,604				4,142,816				4,399,127

(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												Nine Months Ended
(Dollars in thousands)		9/30/2025				6/30/2025				9/30/2024				9/30/2025				9/30/2024
ALLOWANCE FOR CREDIT LOSSES
Loans:
Beginning balance		$	2,431			$	2,500			$	2,215			$	2,522			$	2,124
Provision for (reversal of) credit losses			(32)				(27)				330				(42)				557
Charge-offs			(37)				(63)				(184)				(153)				(364)
Recoveries			35				21				53				70				97
Net charge-offs			(2)				(42)				(131)				(83)				(267)
Ending balance		$	2,397			$	2,431			$	2,414			$	2,397			$	2,414
Unfunded commitments:
Beginning balance		$	131			$	104			$	224				121				257
Provision for (reversal of) credit losses on unfunded commitments			(4)				27				7				6				(26)
Ending balance		$	127			$	131			$	231			$	127			$	231
Total provision for (reversal of) credit losses		$	(36)			$	-			$	337			$	(36)			$	531
CREDIT QUALITY(1)
Non-accruing loans		$	1,459			$	1,455			$	1,423
Accruing loans 90 days or more past due			364				215				15
Total non-performing loans			1,823				1,670				1,438
Foreclosed assets			76				80				173
Total non-performing assets		$	1,899			$	1,750			$	1,611
Total non-performing loans to total loans			1.11	%			1.00	%			0.87	%
Total non-performing assets to total assets			0.67				0.64				0.57

(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 were Catalyst Bancorp (CLST) net income and key results for Q3 2025?

Catalyst Bancorp reported net income of $489,000 for Q3 2025, loans of $164.8M, investment securities of $59.8M, and deposits of $186.4M as of 9/30/2025.

How did Catalyst Bancorp (CLST) loan balances change in Q3 2025?

Total loans declined 2% QoQ to $164.8M, primarily from a $4.6M construction loan pay-off and pay-downs on a commercial relationship.

Why did Catalyst Bancorp (CLST) investment securities grow in Q3 2025?

Investment securities rose by $15.6M (35% QoQ) after purchases of $15.1M variable-rate and $1.1M fixed-rate government-sponsored mortgage-backed securities.

What deposit trends did Catalyst Bancorp (CLST) report for Q3 2025?

Total deposits increased 2% QoQ to $186.4M, driven largely by high-yield account specials that attracted new customer balances.

How active was Catalyst Bancorp (CLST) in share repurchases through 9/30/2025?

The company repurchased 13,212 shares in Q3 2025 and has repurchased 1,160,396 shares total (~22% of originally issued) through September 30, 2025.