Catalyst Bancorp (Nasdaq: CLST) Q2 profit and Lakeside merger completion

Q: 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.

Q: 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.

Q: 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.

Q: 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.

Q: 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.

Q: Did CLST repurchase shares during the second quarter of 2026?

Yes. Catalyst Bancorp repurchased 24,206 shares of common stock in Q2 2026 at an average cost of $16.20 per share . As of June 30, 2026, 4,034,091 common shares were outstanding.

Q: 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% .

Filing Impact

(Very High)

Filing Sentiment

(Neutral)

Form Type

8-K

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 June 30, 2026, Catalyst Bancorp retained authorization to repurchase up to 148,091 shares under its November 2025 Repurchase Plan; this is remaining capacity, not a commitment that those shares will be bought.

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, and 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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 07/30/2026 - 09:47 AM Accepted by SEC EDGAR 07/30/2026 - 09:46 AM

FAQ

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.

Did CLST repurchase shares during the second quarter of 2026?

Yes. Catalyst Bancorp repurchased 24,206 shares of common stock in Q2 2026 at an average cost of $16.20 per share. As of June 30, 2026, 4,034,091 common shares were outstanding.

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%.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported)	July 30, 2026

Catalyst Bancorp, Inc.

(Exact name of registrant as specified in its charter)


Louisiana	001-40893	86-2411762
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


235 N. Court Street, Opelousas, Louisiana	70570
(Address of principal executive offices)	(Zip Code)


Registrant’s telephone number, including area code	(337) 948-3033

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):


☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	CLST	Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02 Results of Operations and Financial Condition

On July 30, 2026, Catalyst Bancorp, Inc. (the “Company”) announced its results for the quarter ended June 30, 2026. A copy of the related press release (the "Press Release") is attached as Exhibit 99.1 to this Current Report on Form 8-K. The information furnished under items 2.02 and 9.01 of this Current Report on Form 8-K, including the exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section, and it shall not be deemed incorporated by reference in any filing under the Exchange Act, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing to this Form 8-K.

ITEM 9.01 Financial Statements and Exhibits

(d) Exhibits

The following exhibits are included herein:


Exhibit Number		Description
99.1		Press Release, dated July 30, 2026
104		Cover Page Interactive Data File. Embedded within the Inline XBRL document.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		CATALYST BANCORP, INC.

Date:	July 30, 2026	By:	/s/ Joseph B. Zanco
			Joseph B. Zanco
			President and Chief Executive Officer

Exhibit 99.1

For more information:

Joe Zanco, President and CEO

(337) 948-3033

For Immediate Release

Release Date: July 30, 2026

Catalyst Bancorp, Inc. Announces 2026 Second Quarter Results

Opelousas, Louisiana – Catalyst Bancorp, Inc. (Nasdaq: “CLST”) (the “Company”), the parent company for Catalyst Bank (the “Bank”) (www.catalystbank.com), reported net income of $524,000, or $0.14 per diluted common share (“diluted EPS”), for the second quarter of 2026, compared to net income of $558,000, or $0.15 diluted EPS, for the first quarter of 2026.

On July 14, 2026, the Company completed the acquisition of Lakeside Bancshares, Inc. and its subsidiary, Lakeside Bank (collectively referred to as “Lakeside”). The Company’s reported net income for 2026 includes certain expenses related to Lakeside’s merger with and into the Company and the Bank. These expenses are referred to as “merger-related expenses” and totaled $87,000 (pre-tax) for the second quarter of 2026, compared to $95,000 (pre-tax) for the first quarter of 2026.

“Although we’ve seen a decline in loans through the first half of the year, credit quality remains sound and we continue to gain new deposit customers,” said Joe Zanco, President and Chief Executive Officer of the Company and Bank. “We’re excited about Louisiana’s economic future and are off to a running start in our new, Southwest Louisiana market.”

Loans

Loans totaled $162.8 million at June 30, 2026, down $892,000, or 1%, from March 31, 2026. The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated.


(Dollars in thousands)	6/30/2026		3/31/2026		Change
Real estate loans
One- to four-family residential	$	76,699	$	78,093	$	(1,394)	(2)	%
Commercial real estate		37,426		33,673		3,753	11
Construction and land		15,943		19,761		(3,818)	(19)
Multi-family residential		4,724		4,781		(57)	(1)
Total real estate loans		134,792		136,308		(1,516)	(1)
Other loans
Commercial and industrial		26,256		25,626		630	2	%
Consumer		1,737		1,743		(6)	-
Total other loans		27,993		27,369		624	2
Total loans	$	162,785	$	163,677	$	(892)	(1)

During the second quarter of 2026, a $5.0 million construction loan was converted to an amortizing commercial real estate loan. The loan is included in the health service facilities category presented in the following table.

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)	6/30/2026		3/31/2026		Change
Commercial real estate
Retail	$	8,878	$	9,273	$	(395)	(4)	%
Hospitality		5,440		5,519		(79)	(1)
Health service facilities		9,838		4,911		4,927	100
Restaurants		1,022		1,047		(25)	(2)
Oilfield services		345		355		(10)	(3)
Other non-owner occupied		2,002		2,322		(320)	(14)
Other owner occupied		9,901		10,246		(345)	(3)
Total commercial real estate	$	37,426	$	33,673	$	3,753	11
Construction and land
Multi-family residential	$	6,873	$	5,783	$	1,090	19	%
Health service facilities		4,797		9,698		(4,901)	(51)
Other commercial construction and land		3,088		2,436		652	27
Consumer residential construction and land		1,185		1,844		(659)	(36)
Total construction and land	$	15,943	$	19,761	$	(3,818)	(19)
Commercial and industrial
Oilfield services	$	17,824	$	17,959	$	(135)	(1)	%
Industrial equipment		910		986		(76)	(8)
Professional services		3,582		3,250		332	10
Other commercial and industrial		3,940		3,431		509	15
Total commercial and industrial loans	$	26,256	$	25,626	$	630	2

Multi-family residential construction loan growth was largely driven by new apartment homes in Lafayette Parish.

Credit Quality and Allowance for Credit Losses

At June 30, 2026, non-performing assets (“NPAs”) totaled $2.3 million, down $385,000, or 14%, compared to NPAs of $2.7 million at March 31, 2026. The decline in NPAs was primarily due to the pay-off of a substandard commercial real estate loan that was individually evaluated for credit losses as of March 31, 2026. The ratio of NPAs to total assets was 0.80% and 0.94% at June 30 and March 31, 2026, respectively. Non-performing loans (“NPLs”) were 1.43% and 1.64% of total loans at June 30 and March 31, 2026, respectively. At June 30, 2026, 96% of total NPLs were one- to four-family residential mortgage loans, compared to 82% at March 31, 2026.

At June 30, 2026, the allowance for credit losses on loans totaled $2.2 million, or 1.34% of total loans, compared to $2.3 million, or 1.40% of total loans, at March 31, 2026. The Company recorded a $104,000 reversal of provision for credit losses for the second quarter of 2026, compared to a $70,000 reversal for the first quarter of 2026. The reversal of expected credit losses in the second quarter of 2026 was largely driven by a decline in construction and land loan balances as a result of a $5.0 million construction loan converting to an amortizing commercial real estate loan and a decline in the amount of classified commercial real estate loans during the second quarter of 2026. The reversal of expected credit losses in the first quarter of 2026 was primarily driven by declines in commercial and industrial and residential loan balances.

Net loan charge-offs totaled $1,000 during the second quarter of 2026, compared to net loan charge-offs of $37,000 during the first quarter of 2026. Net loan charge-offs during the first quarter of 2026 included a $28,000 charge-off of a commercial line of credit.

Investment Securities

Total investment securities were $67.1 million, or 23% of total assets, at June 30, 2026, up $3.9 million, or 6%, compared to March 31, 2026. During the second quarter of 2026, we purchased $6.0 million of subordinated debt issued by bank holding companies. The issuers are financially strong, publicly traded companies based in the southern United States. The weighted average yield of the securities purchased during the second quarter of 2026 was 6.3%. We did not purchase investment securities in the first quarter of 2026.

Deposits

Total deposits were $196.4 million at June 30, 2026, up $1.0 million, or 1%, from March 31, 2026. Total deposits averaged $198.8 million during the second quarter of 2026, compared to $198.2 million during the first quarter of 2026. The ratio of the Company’s total loans to total deposits was 83% and 84% at June 30 and March 31, 2026, respectively.

The following table sets forth the composition of the Company’s deposits as of the dates indicated.


(Dollars in thousands)	6/30/2026		3/31/2026		Change
Non-interest-bearing demand deposits	$	35,346	$	34,739	$	607	2	%
Interest-bearing demand deposits		32,667		33,249		(582)	(2)
Money market		9,248		9,296		(48)	(1)
Savings		64,386		60,525		3,861	6
Certificates of deposit		54,742		57,564		(2,822)	(5)
Total deposits	$	196,389	$	195,373	$	1,016	1

Growth in high-yield savings accounts has been a primary driver of deposit growth during both the first and second quarters of 2026.

Total public fund deposits were $27.4 million, or 14% of total deposits, at June 30, 2026, compared to $29.8 million, or 15% of total deposits, at March 31, 2026. During the second quarter of 2026, total public fund deposits averaged $30.1 million, compared to $35.6 million during the first quarter of 2026. The decline in public fund deposits was largely due to seasonal fluctuations.

Capital and Share Repurchases

At June 30 and March 31, 2026, consolidated shareholders’ equity totaled $82.5 million and $82.2 million, or 28.5% of total assets, respectively. Following the merger of Lakeside with and into the Company and the Bank, consolidated shareholders’ equity is estimated to be approximately $78.7 million, or 12.5% of total assets, based on data as of June 30, 2026.

The Company repurchased 24,206 shares of its common stock at an average cost per share of $16.20 during the second quarter of 2026, compared to 16,614 shares at an average cost per share of $15.71 during the first quarter of 2026. The Company paused share repurchases while conducting merger-related due diligence and negotiations.

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 5% of the Company's outstanding common stock. At June 30, 2026, 148,091 shares of the Company’s common stock were available for repurchase under the November 2025 Repurchase Plan.

Since the announcement of our first share repurchase plan on January 26, 2023 and through June 30, 2026, the Company has repurchased a total of 1,255,909 shares of its common stock, or 24% of the common shares originally issued, at an average cost per share of $12.19. At June 30, 2026, the Company had common shares outstanding of 4,034,091.

Net Interest Income

The net interest margin for the second quarter of 2026 was 3.86%, up three basis points compared to the prior quarter. For the second quarter of 2026, the average yield on interest-earning assets was 5.34%, down two basis points from the prior quarter, and the average rate paid on interest-bearing liabilities was 2.31%, down four basis points from the first quarter of 2026. Net interest income for the second quarter of 2026 was $2.6 million, up $46,000, or 2%, compared to the first quarter of 2026.

Total interest income was up $14,000, or less than 1%, in the second quarter of 2026 compared to the prior quarter largely due to an increase in income on investment securities, cash and due from banks, and other interest earning assets, which was mostly offset by a decline in interest income on loans. During March 2026, a $5.9 million commercial and industrial loan relationship paid off after the sale of the borrower’s business. In the same month, the Company purchased $817,000 of stock in the Federal Reserve Bank of Atlanta, which yields a statutory rate of 6.0%. During the second quarter of 2026, as previously mentioned, the Company purchased subordinated debt with an average yield of 6.3%.

Total interest expense decreased $32,000, or 3%, in the second quarter of 2026 compared to the prior quarter. The decline in interest expense was mainly due to a decline in the average volume of total interest-bearing liabilities. Total average interest-bearing deposits were down $2.4 million, or 1%, during the second quarter of 2026 compared to the prior quarter, largely due to fluctuations in public funds.

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
	6/30/2026						3/31/2026
(Dollars in thousands)	Average Balance		Interest		Average Yield/ Rate^(TE)		Average Balance		Interest		Average Yield/ Rate^(TE)
INTEREST-EARNING ASSETS
Loans receivable⁽¹⁾	$	163,650	$	2,686	6.58	%	$	168,545	$	2,749	6.61	%
Investment securities⁽²⁾		69,732		567	3.28			67,529		522	3.13
Other interest earning assets		36,157		331	3.67			33,760		299	3.60
Total interest-earning assets	$	269,539	$	3,584	5.34		$	269,834	$	3,570	5.36
INTEREST-BEARING LIABILITIES
Demand deposits, money market, and savings accounts	$	106,757	$	512	1.92	%	$	107,158	$	494	1.87	%
Certificates of deposit		56,097		407	2.91			58,086		445	3.10
Total interest-bearing deposits		162,854		919	2.26			165,244		939	2.30
Borrowings		9,773		74	3.02			11,110		86	3.11
Total interest-bearing liabilities	$	172,627	$	993	2.31		$	176,354	$	1,025	2.35
Net interest-earning assets	$	96,912					$	93,480
Net interest income; average interest rate spread			$	2,591	3.03	%			$	2,545	3.01	%
Net interest margin⁽³⁾					3.86						3.83

(1)

Includes non-accrual loans during the respective periods. Calculated net of deferred fees and discounts and loans in-process.

(2)

Average investment securities do 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 Expense

Non-interest expense for the second quarter of 2026 totaled $2.4 million, up $97,000, or 4%, compared to the first quarter of 2026. Non-interest expense included merger-related expenses of $87,000 for the second quarter of 2026, compared to $95,000 for the first quarter of 2026.

Professional fees for the second quarter of 2026 totaled $175,000 and included $64,000 of merger-related expenses. For the first quarter of 2026, professional fees totaled $185,000 and included $95,000 of merger-related expenses. Excluding merger-related expenses, professional fees increased during the second quarter of 2026 compared to the prior quarter primarily due to expenses associated with the Company’s annual meeting and annual report.

Advertising and marketing expense for the second quarter of 2026 was $47,000, up $14,000, or 42%, compared to the prior quarter largely due to merger-related expenses.

Other non-interest expense totaled $289,000 for the second quarter of 2026, up $55,000, or 24%, from the prior quarter. The majority of the increase was due to training and education expenses and annual report distribution costs. Other non-interest expense for the second quarter of 2026 also included $8,000 of merger-related expenses.

Income Tax Expense

Income tax expense for the second quarter of 2026 totaled $152,000, up $26,000, or 21%, compared to the first quarter of 2026. The Company’s effective tax rate was 22.5% for the second quarter of 2026, compared to 18.4% for the first quarter of 2026. The increase in income tax expense and the effective tax rate for the second quarter of 2026 was mainly due to the tax impact of non-deductible merger-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 $290.0 million in assets at June 30, 2026. Catalyst Bank, formerly St. Landry Homestead Federal Savings Bank, has been in operation in the Acadiana region of south-central Louisiana since 1922. Catalyst Bank offers commercial and retail banking products with a focus on fueling business and improving lives in the communities we serve. 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 expectations 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)				(Unaudited)
(Dollars in thousands)	6/30/2026		3/31/2026		12/31/2025		6/30/2025
ASSETS
Non-interest-bearing cash	$	4,973	$	4,898	$	4,132	$	4,024
Interest-bearing cash and due from banks		32,009		33,635		21,073		36,032
Total cash and cash equivalents		36,982		38,533		25,205		40,056
Investment securities:
Securities available-for-sale, at fair value		46,218		48,216		50,467		29,294
Securities held-to-maturity		20,844		14,914		14,917		14,948
Loans receivable, net of unearned income		162,785		163,677		170,210		167,569
Allowance for credit losses		(2,185)		(2,295)		(2,367)		(2,431)
Loans receivable, net		160,600		161,382		167,843		165,138
Accrued interest receivable		876		849		907		883
Foreclosed assets		5		34		34		80
Premises and equipment, net		5,648		5,749		5,850		5,977
Stock in correspondent banks, at cost		1,976		1,963		1,139		825
Bank-owned life insurance		15,252		15,117		14,983		14,726
Other assets		1,612		1,751		1,582		1,858
TOTAL ASSETS	$	290,013	$	288,508	$	282,927	$	273,785

LIABILITIES
Deposits:
Non-interest-bearing	$	35,346	$	34,739	$	29,991	$	31,155
Interest-bearing		161,043		160,634		155,283		151,056
Total deposits		196,389		195,373		185,274		182,211
Borrowings		9,786		9,759		14,732		9,647
Other liabilities		1,308		1,167		1,196		1,128
TOTAL LIABILITIES		207,483		206,299		201,202		192,986

SHAREHOLDERS' EQUITY
Common stock		40		41		41		41
Additional paid-in capital		37,051		37,303		37,363		38,259
Unallocated common stock held by benefit plans		(5,008)		(5,129)		(5,182)		(5,596)
Retained earnings		52,994		52,470		51,912		50,967
Accumulated other comprehensive loss		(2,547)		(2,476)		(2,409)		(2,872)
TOTAL SHAREHOLDERS' EQUITY		82,530		82,209		81,725		80,799
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	290,013	$	288,508	$	282,927	$	273,785


CATALYST BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Three Months Ended						Six Months Ended
(Dollars in thousands)	6/30/2026		3/31/2026		6/30/2025		6/30/2026		6/30/2025
INTEREST INCOME
Loans receivable, including fees	$	2,686	$	2,749	$	2,792	$	5,435	$	5,530
Investment securities		567		522		294		1,089		569
Cash and due from banks		309		290		353		599		694
Other earning assets		22		9		22		31		42
Total interest income		3,584		3,570		3,461		7,154		6,835
INTEREST EXPENSE
Deposits		919		939		925		1,858		1,866
Borrowings		74		86		68		160		136
Total interest expense		993		1,025		993		2,018		2,002
Net interest income		2,591		2,545		2,468		5,136		4,833
Reversal of credit losses		(104)		(70)		-		(174)		-
Net interest income after reversal of credit losses		2,695		2,615		2,468		5,310		4,833
NON-INTEREST INCOME
Service charges on deposit accounts		204		202		202		406		399
Bank-owned life insurance		135		134		119		269		237
Other		22		16		23		38		45
Total non-interest income		361		352		344		713		681
NON-INTEREST EXPENSE
Salaries and employee benefits		1,343		1,321		1,262		2,664		2,507
Occupancy and equipment		208		209		208		417		407
Data processing and communication		183		180		176		363		358
Professional fees		175		185		114		360		215
Directors’ fees		124		121		117		245		231
Foreclosed assets, net		11		-		18		11		(109)
Advertising and marketing		47		33		20		80		59
Other		289		234		263		523		492
Total non-interest expense		2,380		2,283		2,178		4,663		4,160
Income before income tax expense		676		684		634		1,360		1,354
Income tax expense		152		126		113		278		247
NET INCOME	$	524	$	558	$	521	$	1,082	$	1,107

Earnings per share:
Basic	$	0.15	$	0.16	$	0.14	$	0.30	$	0.30
Diluted		0.14		0.15		0.14		0.30		0.30


CATALYST BANCORP, INC.
SELECTED FINANCIAL DATA
(Unaudited)

	Three Months Ended									Six Months Ended
(Dollars in thousands)	6/30/2026			3/31/2026			6/30/2025			6/30/2026			6/30/2025
EARNINGS DATA
Total interest income	$	3,584		$	3,570		$	3,461		$	7,154		$	6,835
Total interest expense		993			1,025			993			2,018			2,002
Net interest income		2,591			2,545			2,468			5,136			4,833
Reversal of credit losses		(104)			(70)			-			(174)			-
Total non-interest income		361			352			344			713			681
Total non-interest expense		2,380			2,283			2,178			4,663			4,160
Income tax expense		152			126			113			278			247
Net income	$	524		$	558		$	521		$	1,082		$	1,107

AVERAGE BALANCE SHEET DATA
Total loans	$	163,650		$	168,545		$	167,627		$	166,084		$	166,891
Total interest-earning assets		269,539			269,834			249,137			269,686			247,920
Total assets		292,262			292,752			270,788			292,506			269,517
Total interest-bearing deposits		162,854			165,244			149,106			164,042			149,540
Total interest-bearing liabilities		172,627			176,354			158,725			174,480			159,136
Total deposits		198,754			198,160			179,426			198,458			178,272
Total shareholders' equity		82,339			82,141			80,611			82,240			80,519

SELECTED RATIOS
Return on average assets		0.72	%		0.77	%		0.77	%		0.75	%		0.83	%
Return on average equity		2.55			2.76			2.59			2.65			2.77
Efficiency ratio		80.64			78.79			77.46			79.72			76.37
Net interest margin^(TE)		3.86			3.83			3.98			3.84			3.93
Average equity to average assets		28.17			28.06			29.77			28.12			29.88
Common equity Tier 1 capital ratio⁽¹⁾		43.37			44.29			43.72
Tier 1 leverage capital ratio⁽¹⁾		26.55			26.22			27.56
Total risk-based capital ratio⁽¹⁾		44.62			45.55			44.98

NON-FINANCIAL DATA
Total employees (full-time equivalent)		49			49			49
Common shares issued and outstanding, end of period		4,034,091			4,058,297			4,142,816

(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									Six Months Ended
(Dollars in thousands)	6/30/2026			3/31/2026			6/30/2025			6/30/2026		6/30/2025
ALLOWANCE FOR CREDIT LOSSES
Loans:
Beginning balance	$	2,295		$	2,367		$	2,500		$	2,367	$	2,522
Reversal of credit losses		(109)			(35)			(27)			(144)		(10)
Charge-offs		(18)			(49)			(63)			(67)		(116)
Recoveries		17			12			21			29		35
Net charge-offs		(1)			(37)			(42)			(38)		(81)
Ending balance	$	2,185		$	2,295		$	2,431		$	2,185	$	2,431

Unfunded commitments:
Beginning balance	$	176		$	211		$	104		$	211	$	121
Provision for (reversal of) credit losses on unfunded commitments		5			(35)			27			(30)		10
Ending balance	$	181		$	176		$	131		$	181	$	131

Total reversal of credit losses	$	(104)		$	(70)		$	-		$	(174)	$	-

CREDIT QUALITY⁽¹⁾
Non-accruing loans	$	2,175		$	2,432		$	1,455
Accruing loans 90 days or more past due		147			246			215
Total non-performing loans		2,322			2,678			1,670
Foreclosed assets		5			34			80
Total non-performing assets	$	2,327		$	2,712		$	1,750

Total non-performing loans to total loans		1.43	%		1.64	%		1.00	%
Total non-performing assets to total assets		0.80			0.94			0.64

(1)

Credit quality data and ratios are as of the end of each period presented.

Source: View Original Filing on SEC EDGAR

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