Catalyst Bancorp posts Q2 2026 results, closes deal
Catalyst Bancorp, Inc. reported net income of $524,000 for the quarter ended June 30, 2026, or $0.14 per diluted share, compared with $558,000 and $0.15 in the prior quarter.
Rhea-AI Filing Summary
Catalyst Bancorp, Inc. reported net income of $524,000 for the quarter ended June 30, 2026, or $0.14 per diluted share, compared with $558,000 and $0.15 in the prior quarter. Results included $87,000 of pre-tax merger-related expenses tied to the July 14, 2026 acquisition of Lakeside Bancshares, Inc.
Loans totaled $162.8 million and deposits $196.4 million at June 30, 2026, producing an 83% loan-to-deposit ratio. Credit quality improved as non-performing assets declined to $2.3 million, 0.80% of total assets, and non-performing loans fell to 1.43% of total loans, with most NPLs in one- to four-family mortgages.
Net interest margin rose to 3.86%, supported by higher-yielding securities, including $6.0 million of subordinated bank holding company debt purchased at a 6.3% weighted average yield, and lower interest expense. Shareholders’ equity was $82.5 million, 28.5% of assets, and is estimated at $78.7 million, or 12.5% of total assets, after the Lakeside merger. The company repurchased 24,206 shares in the quarter and had 4,034,091 shares outstanding at period-end.
Positive
- Completed Lakeside Bancshares acquisition, with post-merger shareholders’ equity estimated at $78.7 million, or 12.5% of total assets, creating a larger combined franchise while maintaining a double-digit equity-to-assets ratio.
Negative
- None.
Filing Explained
At
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net income Q2 2026: $524,000
Diluted EPS Q2 2026: $0.14 per diluted share
Total loans: $162.8 million
+5 more
8 metrics
Net income Q2 2026
$524,000
Quarter ended June 30, 2026; compared with $558,000 in the first quarter of 2026
Diluted EPS Q2 2026
$0.14 per diluted share
Quarter ended June 30, 2026; compared with $0.15 in the first quarter of 2026
Total loans
$162.8 million
Loans outstanding at June 30, 2026
Total deposits
$196.4 million
Deposits outstanding at June 30, 2026
Non-performing assets ratio
0.80%
Non-performing assets as a percentage of total assets at June 30, 2026
Net interest margin
3.86%
Taxable-equivalent net interest margin for the second quarter of 2026
Shareholders’ equity
$82.5 million
Consolidated shareholders’ equity at June 30, 2026, equal to 28.5% of total assets
Share repurchases Q2 2026
24,206 shares at $16.20 average price
Common stock repurchased during the second quarter of 2026
Key Terms
net interest margin, non-performing assets, allowance for credit losses, efficiency ratio, +2 more
6 terms
net interest margin financial
"The net interest margin for the second quarter of 2026 was 3.86%."
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
non-performing assets financial
"At June 30, 2026, non-performing assets (“NPAs”) totaled $2.3 million."
Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.
allowance for credit losses financial
"the allowance for credit losses on loans totaled $2.2 million, or 1.34% of total loans."
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
efficiency ratio financial
"Efficiency ratio | 80.64 | ... for the second quarter of 2026."
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
Common equity Tier 1 capital ratio financial
"Common equity Tier 1 capital ratio (1) | 43.37 | ..."
A bank’s common equity tier 1 (CET1) capital ratio measures the size of its strongest loss-absorbing capital—mainly common shares and retained earnings—relative to the bank’s assets after adjusting those assets for how risky they are (riskier loans count more). Think of it as the safety cushion compared with the weight of risky business; investors use it to judge a bank’s ability to survive losses, meet rules, and sustain dividends or growth.
Tier 1 leverage capital ratio financial
"Tier 1 leverage capital ratio (1) | 26.55 | ..."
The Tier 1 leverage capital ratio measures a bank’s core financial cushion—mainly equity and retained profits—against its total assets, showing what share of its balance sheet is funded by high-quality capital rather than borrowed money. Think of it as the percentage of a building supported by solid pillars instead of temporary scaffolding; a higher ratio means the bank can better absorb losses and is less likely to need outside help, which matters to investors assessing safety, regulatory compliance, dividend risk and long-term stability.
Earnings Snapshot
Net income: $524,000
quarter ended June 30, 2026
Net income
$524,000
Compared to $558,000 in the first quarter of 2026.
Diluted EPS
$0.14
Compared to $0.15 in the first quarter of 2026.
Net interest margin
3.86%
Compared to 3.83% in the first quarter of 2026.
Return on average assets
0.72%
Compared to 0.77% in the first quarter of 2026.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Catalyst Bancorp (CLST)’s Q2 2026 earnings?
Catalyst Bancorp reported net income of $524,000 for Q2 2026, or $0.14 diluted EPS, compared with $558,000 and $0.15 diluted EPS in the first quarter of 2026.
How did loans and deposits change for CLST in Q2 2026?
At June 30, 2026, Catalyst Bancorp had loans of $162.8 million and deposits of $196.4 million, resulting in a loan-to-deposit ratio of 83%, slightly lower than 84% at March 31, 2026.
What is the status of Catalyst Bancorp (CLST)’s Lakeside acquisition?
On July 14, 2026, Catalyst Bancorp completed the acquisition of Lakeside Bancshares, Inc.. Following the merger, consolidated shareholders’ equity is estimated at $78.7 million, or 12.5% of total assets, based on June 30, 2026 data.
How strong were CLST’s credit quality metrics in Q2 2026?
At June 30, 2026, non-performing assets were $2.3 million, 0.80% of total assets, down from 0.94% at March 31, 2026. Non-performing loans were 1.43% of total loans, versus 1.64% in the prior quarter.
What was Catalyst Bancorp (CLST)’s net interest margin in Q2 2026?
Catalyst Bancorp’s net interest margin was 3.86% in Q2 2026, slightly above 3.83% in Q1 2026. Net interest income rose to $2.6 million, helped by higher-yielding investments and a modest decline in funding costs.
What were CLST’s capital levels at June 30, 2026?
At June 30, 2026, shareholders’ equity was $82.5 million, or 28.5% of total assets. Regulatory ratios included a Common equity Tier 1 capital ratio of 43.37% and a Tier 1 leverage capital ratio of 26.55%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
