Catalyst Bancorp, Inc. Announces 2026 First Quarter Results
Rhea-AI Summary
Catalyst Bancorp (Nasdaq: CLST) reported Q1 2026 net income of $558,000 ($0.15 diluted EPS), up from $456,000 ($0.13) in Q4 2025. Loans were $163.7M (down 4% vs. 12/31/2025); deposits were $195.4M (up 5%).
Key metrics: NPLs 1.64% of loans, allowance for loan losses $2.3M (1.40% of loans), net interest margin 3.83% (down 8 bps). The company noted professional fees of $95,000 related to its agreement to acquire Lakeside and paused repurchases while conducting due diligence.
Positive
- Net income increased to $558,000 in Q1 2026 (Q4 2025: $456,000)
- Total deposits grew 5% to $195.4 million at 3/31/2026
- Available share repurchase capacity of 172,297 shares under Nov 2025 plan
- Allowance for credit losses remained stable at 1.40% of loans
Negative
- Total loans declined 4% to $163.7 million at 3/31/2026
- Net interest margin fell 8 bps to 3.83% in Q1 2026
- Commercial and industrial loans declined 18% (to $25.6M)
- Professional fees rose due to acquisition work: $95,000 related to Lakeside
Key Figures
Market Reality Check
Peers on Argus
CLST was up 0.69% while several regional bank peers like FSEA (-3.02%) and FNWB (-0.40%) traded lower, suggesting a stock-specific reaction rather than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 08 | Acquisition announcement | Positive | -6.6% | All-cash acquisition of Lakeside Bancshares with sizable projected EPS accretion. |
| Jan 29 | Earnings release | Positive | +0.0% | Return to profitability in 2025 and authorization of a new share repurchase plan. |
| Nov 20 | Buyback authorization | Positive | +0.4% | Board approved new plan to repurchase up to 205,000 shares (~5% of stock). |
Recent positive catalysts (acquisition, earnings, buybacks) often saw muted or even negative next-day moves, with only the buyback headline modestly aligning with a positive price reaction.
Over the past six months, CLST has focused on strategic expansion and capital return. The April 8, 2026 deal to acquire Lakeside Bancshares targeted a larger balance sheet and material EPS accretion but coincided with a -6.61% move. Q4 2025 results on January 29, 2026 highlighted a swing back to profitability and a new repurchase plan, yet the stock was flat. The November 2025 buyback authorization, covering up to 205,000 shares, saw a small positive reaction, framing today’s improving Q1 2026 metrics within an ongoing turnaround and consolidation story.
Market Pulse Summary
This announcement highlights steady earnings progress and balance sheet reshaping ahead of the Lakeside acquisition. Q1 2026 net income rose to $558,000 with diluted EPS of $0.15, while total deposits increased to $195.4 million and the loan-to-deposit ratio eased to 84%. Credit metrics remained stable with NPAs at $2.7 million and a 1.40% allowance. Compared with prior quarters and the announced all-cash Lakeside deal, investors may watch loan growth, margin trends, and integration progress as key indicators.
Key Terms
non-performing assets financial
non-performing loans financial
allowance for credit losses financial
net loan charge-offs financial
net interest margin financial
basis points financial
Federal Home Loan Bank advance financial
taxable equivalent financial
AI-generated analysis. Not financial advice.
"Our team is fully engaged in preparing for our growth in
Loans
Loans totaled
(Dollars in thousands) | 3/31/2026 | 12/31/2025 | Change | |||||||||
Real estate loans | ||||||||||||
One- to four-family residential | $ | 78,093 | $ | 80,123 | $ | (2,030) | (3) | % | ||||
Commercial real estate | 33,673 | 32,872 | 801 | 2 | ||||||||
Construction and land | 19,761 | 18,806 | 955 | 5 | ||||||||
Multi-family residential | 4,781 | 5,309 | (528) | (10) | ||||||||
Total real estate loans | 136,308 | 137,110 | (802) | (1) | ||||||||
Other loans | ||||||||||||
Commercial and industrial | 25,626 | 31,205 | (5,579) | (18) | % | |||||||
Consumer | 1,743 | 1,895 | (152) | (8) | ||||||||
Total other loans | 27,369 | 33,100 | (5,731) | (17) | ||||||||
Total loans | $ | 163,677 | $ | 170,210 | $ | (6,533) | (4) | |||||
During the first quarter of 2026, a
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) | 3/31/2026 | 12/31/2025 | Change | |||||||||
Commercial real estate | ||||||||||||
Retail | $ | 9,273 | $ | 9,455 | $ | (182) | (2) | % | ||||
Hospitality | 5,519 | 5,632 | (113) | (2) | ||||||||
Health service facilities | 4,911 | 3,300 | 1,611 | 49 | ||||||||
Restaurants | 1,047 | 1,071 | (24) | (2) | ||||||||
Oilfield services | 355 | 365 | (10) | (3) | ||||||||
Other non-owner occupied | 2,322 | 2,349 | (27) | (1) | ||||||||
Other owner occupied | 10,246 | 10,700 | (454) | (4) | ||||||||
Total commercial real estate | $ | 33,673 | $ | 32,872 | $ | 801 | 2 | |||||
Construction and land | ||||||||||||
Multi-family residential | $ | 5,783 | $ | 4,749 | $ | 1,034 | 22 | % | ||||
Health service facilities | 9,698 | 10,547 | (849) | (8) | ||||||||
Other commercial construction and land | 2,436 | 2,112 | 324 | 15 | ||||||||
Consumer residential construction and land | 1,844 | 1,398 | 446 | 32 | ||||||||
Total construction and land | $ | 19,761 | $ | 18,806 | $ | 955 | 5 | |||||
Commercial and industrial | ||||||||||||
Oilfield services | $ | 17,959 | $ | 17,295 | $ | 664 | 4 | % | ||||
Industrial equipment | 986 | 7,064 | (6,078) | (86) | ||||||||
Professional services | 3,250 | 3,531 | (281) | (8) | ||||||||
Other commercial and industrial | 3,431 | 3,315 | 116 | 3 | ||||||||
Total commercial and industrial loans | $ | 25,626 | $ | 31,205 | $ | (5,579) | (18) | |||||
A
Credit Quality and Allowance for Credit Losses
At March 31, 2026 and December 31, 2025, non-performing assets ("NPAs") totaled
At March 31, 2026, the allowance for credit losses on loans totaled
Investment Securities
Total investment securities were
Deposits
Total deposits were
The following table sets forth the composition of the Company's deposits as of the dates indicated.
(Dollars in thousands) | 3/31/2026 | 12/31/2025 | Change | |||||||||
Non-interest-bearing demand deposits | $ | 34,739 | $ | 29,991 | $ | 4,748 | 16 | % | ||||
Interest-bearing demand deposits | 33,249 | 32,851 | 398 | 1 | ||||||||
Money market | 9,296 | 10,235 | (939) | (9) | ||||||||
Savings | 60,525 | 53,831 | 6,694 | 12 | ||||||||
Certificates of deposit | 57,564 | 58,366 | (802) | (1) | ||||||||
Total deposits | $ | 195,373 | $ | 185,274 | $ | 10,099 | 5 | |||||
The increase in total average deposits for the first quarter compared to the prior quarter and total deposits at the end of each period shown in the table above was driven by a mix of public and non-public deposits.
Total public fund deposits were
Capital and Share Repurchases
At March 31, 2026 and December 31, 2025, consolidated shareholders' equity totaled
The Company repurchased 16,614 shares of its common stock at an average cost per share of
During the fourth quarter of 2025, the Company announced our sixth share repurchase plan (the "November 2025 Repurchase Plan"). Under the November 2025 Repurchase Plan, the Company may purchase up to 205,000 shares, or approximately
Since the announcement of our first share repurchase plan on January 26, 2023 and through March 31, 2026, the Company has repurchased a total of 1,231,703 shares of its common stock, or
Net Interest Income
The net interest margin for the first quarter of 2026 was
Total interest income was up
Total interest expense decreased
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 | ||||||||||||||||||
3/31/2026 | 12/31/2025 | |||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Average | Interest | Average | ||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||
Loans receivable(1) | $ | 168,545 | $ | 2,749 | 6.61 | % | $ | 167,335 | $ | 2,815 | 6.68 | % | ||||||
Investment securities(2) | 67,529 | 522 | 3.13 | 65,352 | 511 | 3.17 | ||||||||||||
Other interest earning assets | 33,760 | 299 | 3.60 | 22,567 | 222 | 3.91 | ||||||||||||
Total interest-earning assets | $ | 269,834 | $ | 3,570 | 5.36 | $ | 255,254 | $ | 3,548 | 5.53 | ||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||
Demand deposits, money market, and | $ | 107,158 | $ | 494 | 1.87 | % | $ | 93,710 | $ | 467 | 1.98 | % | ||||||
Certificates of deposit | 58,086 | 445 | 3.10 | 58,677 | 475 | 3.21 | ||||||||||||
Total interest-bearing deposits | 165,244 | 939 | 2.30 | 152,387 | 942 | 2.45 | ||||||||||||
Borrowings | 11,110 | 86 | 3.11 | 12,884 | 99 | 3.08 | ||||||||||||
Total interest-bearing liabilities | $ | 176,354 | $ | 1,025 | 2.35 | $ | 165,271 | $ | 1,041 | 2.50 | ||||||||
Net interest-earning assets | $ | 93,480 | $ | 89,983 | ||||||||||||||
Net interest income; average interest rate | $ | 2,545 | 3.01 | % | $ | 2,507 | 3.03 | % | ||||||||||
Net interest margin(3) | 3.83 | 3.91 | ||||||||||||||||
(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 first quarter of 2026 totaled
Non-interest Expense
Non-interest expense for the first quarter of 2026 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, 2025, 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. | |||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||
(Unaudited) | (Unaudited) | ||||||||
(Dollars in thousands) | 3/31/2026 | 12/31/2025 | 3/31/2025 | ||||||
ASSETS | |||||||||
Non-interest-bearing cash | $ | 4,898 | $ | 4,132 | $ | 4,128 | |||
Interest-bearing cash and due from banks | 33,635 | 21,073 | 36,190 | ||||||
Total cash and cash equivalents | 38,533 | 25,205 | 40,318 | ||||||
Investment securities: | |||||||||
Securities available-for-sale, at fair value | 48,216 | 50,467 | 29,840 | ||||||
Securities held-to-maturity | 14,914 | 14,917 | 13,445 | ||||||
Loans receivable, net of unearned income | 163,677 | 170,210 | 166,077 | ||||||
Allowance for credit losses | (2,295) | (2,367) | (2,500) | ||||||
Loans receivable, net | 161,382 | 167,843 | 163,577 | ||||||
Accrued interest receivable | 849 | 907 | 866 | ||||||
Foreclosed assets | 34 | 34 | 77 | ||||||
Premises and equipment, net | 5,749 | 5,850 | 6,049 | ||||||
Stock in correspondent banks, at cost | 1,963 | 1,139 | 809 | ||||||
Bank-owned life insurance | 15,117 | 14,983 | 14,607 | ||||||
Other assets | 1,751 | 1,582 | 2,060 | ||||||
TOTAL ASSETS | $ | 288,508 | $ | 282,927 | $ | 271,648 | |||
LIABILITIES | |||||||||
Deposits: | |||||||||
Non-interest-bearing | $ | 34,739 | $ | 29,991 | $ | 26,093 | |||
Interest-bearing | 160,634 | 155,283 | 154,505 | ||||||
Total deposits | 195,373 | 185,274 | 180,598 | ||||||
Borrowings | 9,759 | 14,732 | 9,603 | ||||||
Other liabilities | 1,167 | 1,196 | 856 | ||||||
TOTAL LIABILITIES | 206,299 | 201,202 | 191,057 | ||||||
SHAREHOLDERS' EQUITY | |||||||||
Common stock | 41 | 41 | 42 | ||||||
Additional paid-in capital | 37,303 | 37,363 | 38,844 | ||||||
Unallocated common stock held by benefit plans | (5,129) | (5,182) | (5,649) | ||||||
Retained earnings | 52,470 | 51,912 | 50,446 | ||||||
Accumulated other comprehensive loss | (2,476) | (2,409) | (3,092) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 82,209 | 81,725 | 80,591 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 288,508 | $ | 282,927 | $ | 271,648 | |||
CATALYST BANCORP, INC. | |||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||
(Unaudited) | |||||||||
Three Months Ended | |||||||||
(Dollars in thousands) | 3/31/2026 | 12/31/2025 | 3/31/2025 | ||||||
INTEREST INCOME | |||||||||
Loans receivable, including fees | $ | 2,749 | $ | 2,815 | $ | 2,738 | |||
Investment securities | 522 | 511 | 275 | ||||||
Cash and due from banks | 290 | 215 | 341 | ||||||
Other | 9 | 7 | 20 | ||||||
Total interest income | 3,570 | 3,548 | 3,374 | ||||||
INTEREST EXPENSE | |||||||||
Deposits | 939 | 942 | 941 | ||||||
Borrowings | 86 | 99 | 68 | ||||||
Total interest expense | 1,025 | 1,041 | 1,009 | ||||||
Net interest income | 2,545 | 2,507 | 2,365 | ||||||
Provision for (reversal of) credit losses | (70) | 96 | - | ||||||
Net interest income after provision for (reversal of) credit | 2,615 | 2,411 | 2,365 | ||||||
NON-INTEREST INCOME | |||||||||
Service charges on deposit accounts | 202 | 210 | 197 | ||||||
Bank-owned life insurance | 134 | 134 | 118 | ||||||
Other | 16 | 18 | 22 | ||||||
Total non-interest income | 352 | 362 | 337 | ||||||
NON-INTEREST EXPENSE | |||||||||
Salaries and employee benefits | 1,321 | 1,334 | 1,245 | ||||||
Occupancy and equipment | 209 | 196 | 199 | ||||||
Data processing and communication | 180 | 181 | 182 | ||||||
Professional fees | 185 | 98 | 101 | ||||||
Directors' fees | 121 | 123 | 114 | ||||||
Foreclosed assets, net | - | 17 | (127) | ||||||
Advertising and marketing | 33 | 37 | 39 | ||||||
Other | 234 | 236 | 229 | ||||||
Total non-interest expense | 2,283 | 2,222 | 1,982 | ||||||
Income before income tax expense | 684 | 551 | 720 | ||||||
Income tax expense | 126 | 95 | 134 | ||||||
NET INCOME | $ | 558 | $ | 456 | $ | 586 | |||
Earnings per share: | |||||||||
Basic | $ | 0.16 | $ | 0.13 | $ | 0.16 | |||
Diluted | 0.15 | 0.13 | 0.16 | ||||||
CATALYST BANCORP, INC. | ||||||||||||
SELECTED FINANCIAL DATA | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
(Dollars in thousands) | 3/31/2026 | 12/31/2025 | 3/31/2025 | |||||||||
EARNINGS DATA | ||||||||||||
Total interest income | $ | 3,570 | $ | 3,548 | $ | 3,374 | ||||||
Total interest expense | 1,025 | 1,041 | 1,009 | |||||||||
Net interest income | 2,545 | 2,507 | 2,365 | |||||||||
Provision for (reversal of) credit losses | (70) | 96 | - | |||||||||
Total non-interest income | 352 | 362 | 337 | |||||||||
Total non-interest expense | 2,283 | 2,222 | 1,982 | |||||||||
Income tax expense | 126 | 95 | 134 | |||||||||
Net income | $ | 558 | $ | 456 | $ | 586 | ||||||
AVERAGE BALANCE SHEET DATA | ||||||||||||
Total loans | $ | 168,545 | $ | 167,335 | $ | 166,145 | ||||||
Total interest-earning assets | 269,834 | 255,254 | 246,690 | |||||||||
Total assets | 292,752 | 277,546 | 268,232 | |||||||||
Total interest-bearing deposits | 165,244 | 152,387 | 149,979 | |||||||||
Total interest-bearing liabilities | 176,354 | 165,271 | 159,552 | |||||||||
Total deposits | 198,160 | 181,537 | 177,106 | |||||||||
Total shareholders' equity | 82,141 | 81,739 | 80,426 | |||||||||
SELECTED RATIOS | ||||||||||||
Return on average assets | 0.77 | % | 0.65 | % | 0.89 | % | ||||||
Return on average equity | 2.76 | 2.22 | 2.96 | |||||||||
Efficiency ratio | 78.79 | 77.40 | 73.34 | |||||||||
Net interest margin(TE) | 3.83 | 3.91 | 3.89 | |||||||||
Average equity to average assets | 28.06 | 29.45 | 29.98 | |||||||||
Common equity Tier 1 capital ratio(1) | 44.29 | 42.45 | 46.95 | |||||||||
Tier 1 leverage capital ratio(1) | 26.22 | 27.36 | 29.45 | |||||||||
Total risk-based capital ratio(1) | 45.55 | 43.71 | 48.20 | |||||||||
NON-FINANCIAL DATA | ||||||||||||
Total employees (full-time equivalent) | 49 | 49 | 49 | |||||||||
Common shares issued and outstanding, end of | 4,058,297 | 4,074,911 | 4,205,201 | |||||||||
(1) Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change. | ||||||||||||
CATALYST BANCORP, INC. | ||||||||||||
SELECTED FINANCIAL DATA | ||||||||||||
(continued) | ||||||||||||
Three Months Ended | ||||||||||||
(Dollars in thousands) | 3/31/2026 | 12/31/2025 | 3/31/2025 | |||||||||
ALLOWANCE FOR CREDIT LOSSES | ||||||||||||
Loans: | ||||||||||||
Beginning balance | $ | 2,367 | $ | 2,397 | $ | 2,522 | ||||||
Provision for (reversal of) credit losses | (35) | 12 | 17 | |||||||||
Charge-offs | (49) | (60) | (53) | |||||||||
Recoveries | 12 | 18 | 14 | |||||||||
Net charge-offs | (37) | (42) | (39) | |||||||||
Ending balance | $ | 2,295 | $ | 2,367 | $ | 2,500 | ||||||
Unfunded commitments: | ||||||||||||
Beginning balance | $ | 211 | $ | 127 | $ | 121 | ||||||
Provision for (reversal of) credit losses on | (35) | 84 | (17) | |||||||||
Ending balance | $ | 176 | $ | 211 | $ | 104 | ||||||
Total provision for (reversal of) credit losses | $ | (70) | $ | 96 | $ | - | ||||||
CREDIT QUALITY(1) | ||||||||||||
Non-accruing loans | $ | 2,432 | $ | 2,248 | $ | 1,554 | ||||||
Accruing loans 90 days or more past due | 246 | 395 | 91 | |||||||||
Total non-performing loans | 2,678 | 2,643 | 1,645 | |||||||||
Foreclosed assets | 34 | 34 | 77 | |||||||||
Total non-performing assets | $ | 2,712 | $ | 2,677 | $ | 1,722 | ||||||
Total non-performing loans to total loans | 1.64 | % | 1.55 | % | 0.99 | % | ||||||
Total non-performing assets to total assets | 0.94 | 0.95 | 0.63 | |||||||||
(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.