Catalyst Bancorp Q3 earnings rise 87% from Q2 to $978K

Q: What were CLST's third-quarter 2026 earnings?

Catalyst Bancorp reported net income of $978,000, or $0.27 per diluted common share, for the third quarter of 2026. Net income was up $454,000, or 87%, compared with the second quarter of 2026.

Catalyst repurchased 5,640 shares during the third quarter of 2026 at an average cost of $17.96 per share.

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8-K

Rhea-AI Filing Summary

Catalyst Bancorp, Inc. (CLST) reported third-quarter 2026 net income of $978,000, or $0.27 per diluted share, up $454,000, or 87%, from the second quarter. Net interest income was $5.2 million, up $2.6 million, or 99%, while net interest margin was 3.73%, down 13 basis points from the prior quarter. Reported non-GAAP diluted earnings per share was $0.51.

Catalyst completed its acquisition of Lakeside Bancshares, Inc. on July 14, 2026. At September 30, loans were $383.5 million and deposits were $475.5 million; deposits rose $279.2 million, or 142%, from June 30, primarily due to the acquisition. Non-performing loans were $4.4 million, up $2.1 million, or 91%, from June 30, primarily because of a purchased credit deteriorated commercial real estate loan acquired through Lakeside. Most anticipated acquisition cost savings are expected following the planned November systems conversion.

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Moderate pointThird-quarter net income rose 87% to $978,000 from the second quarter.

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Filing Explained

In the third quarter, Catalyst completed repurchases of 5,640 shares at an average cost of $17.96 per share. As of September 30, 2026, 142,451 shares remained available under a plan permitting purchases of up to 205,000; that remaining amount is capacity, not a commitment to buy more.

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: $978,000 Diluted earnings per share: $0.27 per diluted share Non-GAAP diluted earnings per share: $0.51 per diluted share +5 more

8 metrics

Net income $978,000 Third quarter 2026; up $454,000, or 87%, from second quarter 2026

Diluted earnings per share $0.27 per diluted share Third quarter 2026

Non-GAAP diluted earnings per share $0.51 per diluted share Third quarter 2026

Net interest income $5.2 million Third quarter 2026; up $2.6 million, or 99%, from second quarter 2026

Net interest margin 3.73% Third quarter 2026; down 13 basis points from the prior quarter

Total loans $383.5 million At September 30, 2026

Total deposits $475.5 million At September 30, 2026

Non-performing loans $4.4 million At September 30, 2026; up $2.1 million, or 91%, from June 30, 2026

Key Terms

net interest margin, purchased credit deteriorated, gross-up approach, available-for-sale, +1 more

5 terms

net interest margin financial

"net interest margin for the third quarter of 2026 was 3.73%"

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.

purchased credit deteriorated financial

"purchased credit deteriorated commercial real estate loan"

Purchased credit deteriorated (PCD) describes a debt asset bought when its borrower’s ability to repay has already worsened since the loan was first issued. Under accounting rules, buyers must immediately account for the full expected loss rather than spreading it out, so PCD holdings lower reported earnings and capital right away and signal higher credit risk—similar to buying a used car with known damage that you must account for in your budget.

gross-up approach financial

"applied the gross-up approach to all acquired loans"

available-for-sale financial

"classified as available-for-sale"

A classification for bonds, stocks or other investments that a company plans to keep but might sell before they reach full term. Think of it like items a shop keeps on a shelf for potential sale: their market value can go up or down while the company holds them, and those unrealized gains or losses are shown separately from operating profit until they are sold. Investors watch this because large swings can change a company’s reported net worth and signal how much flexibility it has to raise cash quickly.

non-GAAP financial measures financial

"These non-GAAP financial measures should not be considered in isolation"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

Earnings Snapshot

Net income: $978,000

Third quarter 2026

Net income $978,000 Up $454,000, or 87%, from second quarter 2026

Diluted earnings per share $0.27 per diluted share Compared with $0.14 in second quarter 2026

Net interest income $5.2 million Up $2.6 million, or 99%, compared with second quarter 2026

Net interest margin 3.73% Down 13 basis points compared with the prior quarter

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were CLST's third-quarter 2026 earnings?

Catalyst Bancorp reported net income of $978,000, or $0.27 per diluted common share, for the third quarter of 2026. Net income was up $454,000, or 87%, compared with the second quarter of 2026.

What caused CLST's non-performing loans to rise?

The increase was primarily driven by a purchased credit deteriorated commercial real estate loan acquired through Lakeside. At September 30, 2026, the loan's net amortized cost was $2.0 million and its specific allowance for credit losses was $969,000.

When does CLST expect most Lakeside acquisition cost savings?

Most anticipated cost savings are expected following the planned November systems conversion. Catalyst said some anticipated savings were realized when the acquisition closed on July 14, 2026.

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

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Available on EDGAR 10/29/2026 - 09:14 AM EDT Accepted by SEC EDGAR 10/29/2026 - 09:13 AM EDT

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)	October 29, 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 October 29, 2026, Catalyst Bancorp, Inc. (the “Company”) announced its results for the quarter ended September 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 Exhibit 99.1, 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 October 29, 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:	October 29, 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: October 29, 2026

Catalyst Bancorp, Inc. Announces 2026 Third 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 $978,000, or $0.27 per diluted common share (“diluted EPS”), for the third quarter of 2026, up $454,000, or 87%, compared to net income of $524,000, or $0.14 diluted EPS, for the second quarter of 2026.

Quarterly Highlights

●

On July 14, 2026, the Company completed the acquisition of Lakeside Bancshares, Inc. and its subsidiary, Lakeside Bank (collectively referred to as “Lakeside”). At acquisition, Lakeside had total assets of $379.5 million, including loans of $226.8 million, and deposits of $284.2 million. Lakeside’s shareholders received $19.58 per share in cash, or $41.1 million in aggregate.

●

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 $883,000, after-tax, for the third quarter of 2026, compared to $101,000, after-tax, for the second quarter of 2026.

●	Excluding merger-related expenses, non-GAAP net income totaled $1.9 million, or $0.51 non-GAAP diluted EPS, non-GAAP return on average assets was 1.24% and non-GAAP return on average tangible common equity was 11.05% for the third quarter of 2026. See “Non-GAAP Reconciliation” below.

●

The Company recorded a $261,000 reversal of provision for credit losses for the third quarter of 2026, compared to a $104,000 reversal for the second quarter of 2026. The reversals were primarily related to a decline in construction and land loans during both periods and improvements in originated classified commercial real estate loans during the second quarter of 2026.

From the CEO

“Significant economic momentum is building across Louisiana, highlighted most recently by the announcement of SpaceX’s plan to invest $100 billion to build its largest launch facility in Vermilion Parish,” said Joe Zanco, President and Chief Executive Officer of the Company and Bank. “Given our acquisition of Lakeside, we now flank the largest capital investment in Louisiana history on both sides. Our team is focused on ensuring we play a key role in helping local businesses grow as the economy in the south central and southwest regions of our state is transformed by this and other economic development wins.”

“Our progress integrating Lakeside has gone even better than expected to date,” continued Zanco. “As illustrated by our third quarter performance, with only two and a half months of combined operations and a systems conversion to come, our profitability has increased substantially. Following our November systems conversion, we’ll see further cost savings as we consolidate back-office operations.”

The Company remains committed to maintaining open and transparent communication with its shareholders throughout the year. As part of this commitment, the Company is taking a proactive approach to shareholder engagement, creating opportunities for ongoing dialogue beyond the annual meeting and proxy season. These conversations provide an opportunity to better understand shareholder perspectives, address questions and ensure investors have a clear understanding of the Company's strategy, priorities and long-term objectives. The Company believes that meaningful, year-round engagement is an important component of sound corporate governance and its commitment to building long-term shareholder value.

Acquisition of Lakeside Bancshares, Inc.

On July 14, 2026, the Company completed the acquisition of Lakeside Bancshares, Inc. and its subsidiary, Lakeside Bank. Since then, our team has been working very effectively to integrate Lakeside into Catalyst. While some anticipated cost savings were realized upon the closing of the merger, the majority of anticipated savings are expected to be achieved following our planned November systems conversion. We are pleased with the progress of the Lakeside integration and the performance of our Acadiana and Southwest Louisiana markets to date.

Deploying capital via mergers and acquisitions has always been part of our capital planning. In fact, we have built our leadership team with bankers who have had meaningful success growing earnings and franchise value through acquisitions. That said, our approach to potential merger opportunities is highly cautious given the risks and effort required to successfully integrate a deal. We have maintained a disciplined approach to evaluating growth opportunities over the past five years, pursuing only those that we believe offer an appropriate balance of risk and return and enhance long-term shareholder value.

As it relates to the Lakeside acquisition, we ran extensive modeling to determine the financial impact of the transaction and if acquiring the company was more or less advantageous to long-term shareholder value versus simply repurchasing our shares. Our modeling reveals a compelling case for investing our capital, time and energy into acquiring Lakeside.

Loans

Loans totaled $383.5 million at September 30, 2026, up $220.7 million, or 136%, from June 30, 2026. As of the acquisition date, Lakeside had total loans of $226.8 million. Since acquisition, acquired loan balances declined primarily due to pay-downs on commercial real estate and one- to four-family residential loans.

The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated. Loans are further segmented as either originated or acquired and presented in total. Originated loans were underwritten and funded by the Company, while acquired loans were obtained through the Lakeside acquisition and were recorded at their estimated fair value plus the estimated allowance for credit losses. The acquired loan balances reflect unpaid principal net of estimated interest rate fair value discounts and premiums.


(Dollars in thousands)	9/30/2026		6/30/2026		Change
Originated loans
Real estate
One- to four-family residential	$	76,777	$	76,699	$	78	-	%
Commercial real estate		47,147		37,426		9,721	26
Construction and land		9,049		15,943		(6,894)	(43)
Multi-family residential		4,759		4,724		35	1
Total real estate loans		137,732		134,792		2,940	2
Other
Commercial and industrial		28,232		26,256		1,976	8	%
Consumer		2,165		1,737		428	25
Total other loans		30,397		27,993		2,404	9
Total originated loans	$	168,129	$	162,785	$	5,344	3
Acquired loans
Real estate
One- to four-family residential	$	43,116	$	-	$	43,116	-	%
Commercial real estate		118,483		-		118,483	-
Construction and land		13,340		-		13,340	-
Multi-family residential		18,247		-		18,247	-
Total real estate loans		193,186		-		193,186	-
Other
Commercial and industrial		18,756		-		18,756	-	%
Consumer		3,462		-		3,462	-
Total other loans		22,218		-		22,218	-
Total acquired loans	$	215,404	$	-	$	215,404	-
Total loans
Real estate
One- to four-family residential	$	119,893	$	76,699	$	43,194	56	%
Commercial real estate		165,630		37,426		128,204	343
Construction and land		22,389		15,943		6,446	40
Multi-family residential		23,006		4,724		18,282	387
Total real estate loans		330,918		134,792		196,126	146
Other
Commercial and industrial		46,988		26,256		20,732	79	%
Consumer		5,627		1,737		3,890	224
Total other loans		52,615		27,993		24,622	88
Total loans	$	383,533	$	162,785	$	220,748	136

During the third quarter of 2026, originated construction loans decreased primarily due to the conversion of a $4.8 million hospital construction loan to an amortizing commercial real estate loan and the payoff of a $4.8 million originated multi-family construction loan. These decreases were partially offset by advances on existing construction loans.

Excluding the impact of the hospital construction loan conversion, growth in originated commercial real estate loans during the third quarter of 2026 was driven primarily by $2.7 million of loan production from our new lending team in Southwest Louisiana and $2.2 million of net loan growth from our Acadiana market.

Growth in originated commercial and industrial loans was concentrated in the Acadiana market during the third quarter of 2026. Approximately 65% of the originated commercial and industrial loan portfolio is attributable to borrowers who primarily provide services to the oil and gas industry, which largely includes equipment rentals and manufacturing.

Credit Quality and Allowance for Credit Losses

At September 30, 2026, non-performing loans (“NPLs”) totaled $4.4 million, up $2.1 million, or 91%, compared to NPLs of $2.3 million at June 30, 2026. The increase in NPLs was primarily driven by a purchased credit deteriorated commercial real estate loan acquired through the Lakeside acquisition. At September 30, 2026, the loan’s net amortized cost totaled $2.0 million and the specific allowance for credit losses totaled $969,000.

At September 30, 2026, the allowance for credit losses on loans totaled $5.6 million, or 1.47% of total loans, compared to $2.2 million, or 1.34% of total loans, at June 30, 2026. As of the closing date of the Lakeside acquisition, the Company recorded a $3.6 million addition to the allowance for credit losses on loans, of which $969,000 was attributable to loans acquired with credit deterioration. The Company applied the gross-up approach to all acquired loans, which resulted in no impact to earnings and the recognition of the acquired loans at their estimated fair value plus the estimated allowance for credit losses.

The Company recorded a $261,000 reversal of provision for credit losses for the third quarter of 2026, compared to a $104,000 reversal for the second quarter of 2026. The reversal of expected credit losses in the third quarter of 2026 was largely driven by the decline in originated construction and land loan balances discussed previously. Similarly, 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.

Net loan recoveries totaled $8,000 during the third quarter of 2026, compared to net loan charge-offs of $1,000 during the second quarter of 2026.

Investment Securities

Total investment securities were $123.9 million, or 19.6% of total assets, at September 30, 2026, up $56.9 million, or 84.8%, compared to June 30, 2026. The Company acquired investment securities with an estimated fair value of $115.9 million as a result of the Lakeside acquisition and subsequently sold $56.0 million of the acquired portfolio on the acquisition date. A portion of the sales proceeds were redeployed into fixed-rate mortgage-backed securities. The securities remaining from the Lakeside acquisition and securities subsequently purchased during the third quarter of 2026 were classified as available-for-sale, totaled $59.5 million, and had a weighted average yield of 4.63% as of September 30, 2026.

Deposits

Total deposits were $475.5 million at September 30, 2026, up $279.2 million, or 142%, from June 30, 2026 primarily due to the impact of the Lakeside acquisition. The ratio of the Company’s total loans to total deposits was 81% and 83% at September 30 and June 30, 2026, respectively.

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


(Dollars in thousands)	9/30/2026		6/30/2026		Change
Non-interest-bearing demand deposits	$	89,292	$	35,346	$	53,946	153	%
Interest-bearing demand deposits		98,377		32,667		65,710	201
Money market		50,933		9,248		41,685	451
Savings		81,306		64,386		16,920	26
Certificates of deposit		155,638		54,742		100,896	184
Total deposits	$	475,546	$	196,389	$	279,157	142

At September 30, 2026, the weighted average term to maturity for total certificates of deposit was approximately five months. Total public fund deposits were $76.0 million, or 16% of total deposits, at September 30, 2026, compared to $27.4 million, or 14% of total deposits, at June 30, 2026. The increase in public funds was also primarily due to the Lakeside acquisition.

Capital and Share Repurchases

At September 30, 2026, consolidated shareholders’ equity totaled $82.0 million, or 13.0% of total assets, compared to $82.5 million, or 28.5% of total assets at June 30, 2026. The decline in the ratio of total equity to total assets was mainly due to the increase in the Company’s total assets as a result of the Lakeside acquisition.

Share repurchases have played, and are likely to continue to play, a key role in our capital planning. Since the announcement of our first share repurchase plan on January 26, 2023 and through September 30, 2026, the Company has repurchased a total of 1,261,549 shares of its common stock, or 24% of the common shares originally issued, at an average cost per share of $12.22.

The Company repurchased 5,640 shares of its common stock at an average cost per share of $17.96 during the third quarter of 2026, compared to 24,206 shares at an average cost per share of $16.20 during the second quarter of 2026. During the fourth quarter of 2025, the Company announced its sixth share repurchase plan (the “November 2025 Repurchase Plan”), under which it may purchase up to 205,000 shares, representing approximately 5% of the Company’s outstanding common stock. At September 30, 2026, an additional 142,451 shares of the Company’s common stock were available for repurchase under the November 2025 Repurchase Plan.

Net Interest Income

The net interest margin for the third quarter of 2026 was 3.73%, down 13 basis points compared to the prior quarter primarily driven by a shift in the mix of our interest-earning assets and acquired borrowings as a result of the Lakeside acquisition. Net interest income for the third quarter of 2026 was $5.2 million, up $2.6 million, or 99%, compared to the second quarter of 2026. Net interest income for the third quarter of 2026 included net accretion of estimated interest rate fair value marks of $298,000 on acquired loans, $144,000 on acquired certificates of deposit, and $50,000 on acquired borrowings.

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
	9/30/2026						6/30/2026
(Dollars in thousands)	Average Balance		Interest		Average Yield/ Rate^(TE)		Average Balance		Interest		Average Yield/ Rate^(TE)
INTEREST-EARNING ASSETS
Loans receivable⁽¹⁾	$	355,106	$	5,914	6.61	%	$	163,650	$	2,686	6.58	%
Investment securities⁽²⁾		124,034		1,182	3.83			69,732		567	3.28
Other interest-earning assets		70,342		636	3.59			36,157		331	3.67
Total interest-earning assets	$	549,482	$	7,732	5.59		$	269,539	$	3,584	5.34
INTEREST-BEARING LIABILITIES
Demand deposits, money market, and savings accounts	$	209,184	$	810	1.54	%	$	106,757	$	512	1.92	%
Certificates of deposit		149,164		1,114	2.96			56,097		407	2.91
Total interest-bearing deposits		358,348		1,924	2.13			162,854		919	2.26
Borrowings		67,463		656	3.89			9,773		74	3.02
Total interest-bearing liabilities	$	425,811	$	2,580	2.41		$	172,627	$	993	2.31
Net interest-earning assets	$	123,671					$	96,912
Net interest income; average interest rate spread			$	5,152	3.18	%			$	2,591	3.03	%
Net interest margin⁽³⁾					3.73						3.86

(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 Income

Non-interest income for the third quarter of 2026 totaled $658,000, up $297,000, or 82%, compared to the second quarter of 2026 mainly due to the impact of the Lakeside acquisition.

Non-interest Expense

Non-interest expense for the third quarter of 2026 totaled $4.8 million, up $2.4 million, or 101%, compared to the second quarter of 2026 largely due to the impact of the Lakeside acquisition and merger-related expenses. Merger-related expenses are primarily concentrated in data processing and communication expenses and professional fees.

Income Tax Expense

Income tax expense for the third quarter of 2026 totaled $321,000, up $169,000, or 111%, compared to the second quarter of 2026 largely due to an increase in earnings. The Company’s effective tax rate was 24.7% for the third quarter of 2026, compared to 22.5% for the second quarter of 2026. The increase in the effective tax rate for the third 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 $631.2 million in assets at September 30, 2026. Founded in 1922 as St. Landry Homestead Federal Savings Bank, Catalyst Bank has served the Acadiana region of south-central Louisiana for more than a century and recently expanded into southwest Louisiana through the acquisition of Lakeside Bank. 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. These forward-looking statements include statements regarding the integration of Lakeside, the timing and expected benefits of the planned systems conversion, anticipated cost savings and other benefits of the acquisition, future profitability and capital deployments, and the potential effects of announced economic development projects in the Company’s markets. 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 include difficulties or delays in integrating Lakeside and completing the systems conversion; the failure to realize anticipated cost savings or other acquisition benefits, or delays in realizing them; integration costs exceeding expectations; disruptions of relationships with customers, employees, or vendors; diversion of management time to integration matters; delays, changes or cancellations affecting announced economic development projects or their anticipated benefits to the Company’s markets; and other factors described under “Forward-Looking Statements,” “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.

IMPORTANT ADDITIONAL INFORMATION AND WHERE TO FIND IT

Catalyst Bancorp, Inc. intends to file with the SEC a definitive proxy statement and associated WHITE proxy card in connection with the solicitation of proxies for the Company's 2027 Annual Meeting. Details concerning the nominees of the Company's Board of Directors for election at the 2027 Annual Meeting will be included in the proxy statement. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SHAREHOLDERS OF CATALYST BANCORP, INC., ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO AND ANY DOCUMENTS INCORPORATED BY REFERENCE THEREIN) AND ALL OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE 2027 ANNUAL MEETING BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and shareholders of Catalyst Bancorp, Inc., may obtain copies of the proxy statement and other documents that are filed or will be filed by the Company with the SEC, free of charge, through the website maintained by the SEC at www.sec.gov. Copies of the documents filed by Catalyst Bancorp, Inc., with the SEC will also be available, free of charge, on the Company’s website at https://catalystbank.investorroom.com or by writing to Catalyst Bancorp, Inc., at 235 N. Court Street, Opelousas, Louisiana 70570. Catalyst Bancorp, Inc., includes website addresses in this press release for reference only. The information contained or referenced on the Company’s website and other websites mentioned in this press release are not a part of this press release and are not deemed incorporated by reference into this press release or any other public filing made with the SEC.

CONTACTS

Media and Investor Contact:

Joe Zanco

(337) 948-3033

Proxy Solicitor:

Laurel Hill Advisory Group, L.L.C.

Joe Moran / John J. DePinto, Jr.

Shareholders may call toll-free: 844-304-2265

Banks and Brokers may call collect: 516-933-3100

Email: CLST@laurelhill.com

PARTICIPANTS IN THE SOLICITATION

The Company, its directors and certain of its executive officers will be deemed participants in the solicitation of proxies from shareholders in respect of the 2027 Annual Meeting. Information regarding the names of the Company's directors and executive officers and their respective interests in the Company by security holdings or otherwise is set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on March 31, 2026, and the Company's definitive proxy statement for the 2026 Annual Meeting of Shareholders filed with the SEC on April 14, 2026, including under “Beneficial Ownership of Common Stock by Certain Beneficial Owners and Management.” To the extent holdings of such participants in the Company's securities have changed since the amounts described in the proxy statement for the 2026 Annual Meeting of Shareholders, such changes have been reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC. These documents can be obtained free of charge from the sources indicated above. Additional information regarding the interests of these participants in any proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will also be included in any proxy statement and other relevant materials to be filed with the SEC, if and when they become available.


CATALYST BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	(Unaudited)		(Unaudited)				(Unaudited)
(Dollars in thousands)	9/30/2026		6/30/2026		12/31/2025		9/30/2025
ASSETS
Non-interest-bearing cash	$	9,655	$	4,973	$	4,132	$	4,515
Interest-bearing cash and due from banks		66,017		32,009		21,073		32,756
Total cash and cash equivalents		75,672		36,982		25,205		37,271
Investment securities:
Securities available-for-sale, at fair value		103,084		46,218		50,467		44,853
Securities held-to-maturity		20,841		20,844		14,917		14,945
Loans receivable, net of unearned income		383,533		162,785		170,210		164,767
Allowance for credit losses		(5,643)		(2,185)		(2,367)		(2,397)
Loans receivable, net		377,890		160,600		167,843		162,370
Accrued interest receivable		2,143		876		907		861
Foreclosed assets		-		5		34		76
Premises and equipment, net		15,157		5,648		5,850		5,954
Stock in correspondent banks, at cost		4,564		1,976		1,139		939
Bank-owned life insurance		17,700		15,252		14,983		14,849
Goodwill		6,170		-		-		-
Core deposit intangible		5,307		-		-		-
Other assets		2,698		1,612		1,582		1,716
TOTAL ASSETS	$	631,226	$	290,013	$	282,927	$	283,834

LIABILITIES
Deposits:
Non-interest-bearing	$	89,292	$	35,346	$	29,991	$	27,617
Interest-bearing		386,254		161,043		155,283		158,755
Total deposits		475,546		196,389		185,274		186,372
Borrowings		69,963		9,786		14,732		14,693
Other liabilities		3,764		1,308		1,196		1,184
TOTAL LIABILITIES		549,273		207,483		201,202		202,249

SHAREHOLDERS' EQUITY
Common stock		41		40		41		41
Additional paid-in capital		37,129		37,051		37,363		37,997
Unallocated common stock held by benefit plans		(4,670)		(5,008)		(5,182)		(5,260)
Retained earnings		53,972		52,994		51,912		51,456
Accumulated other comprehensive loss		(4,519)		(2,547)		(2,409)		(2,649)
TOTAL SHAREHOLDERS' EQUITY		81,953		82,530		81,725		81,585
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	631,226	$	290,013	$	282,927	$	283,834


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

	Three Months Ended						Nine Months Ended
(Dollars in thousands, except per share data)	9/30/2026		6/30/2026		9/30/2025		9/30/2026		9/30/2025
INTEREST INCOME
Loans receivable, including fees	$	5,914	$	2,686	$	2,816	$	11,349	$	8,346
Investment securities		1,182		567		345		2,271		914
Cash and due from banks		585		309		345		1,184		1,039
Other earning assets		51		22		7		82		49
Total interest income		7,732		3,584		3,513		14,886		10,348
INTEREST EXPENSE
Deposits		1,924		919		983		3,782		2,849
Borrowings		656		74		80		816		216
Total interest expense		2,580		993		1,063		4,598		3,065
Net interest income		5,152		2,591		2,450		10,288		7,283
Reversal of credit losses		(261)		(104)		(36)		(435)		(36)
Net interest income after reversal of credit losses		5,413		2,695		2,486		10,723		7,319
NON-INTEREST INCOME
Service charges on deposit accounts		437		204		172		843		571
Bank-owned life insurance		153		135		123		422		360
Loss on sale of fixed assets		-		-		(1)		-		(1)
Other		68		22		21		106		66
Total non-interest income		658		361		315		1,371		996
NON-INTEREST EXPENSE
Salaries and employee benefits		2,198		1,343		1,312		4,862		3,819
Occupancy and equipment		321		208		220		738		627
Data processing and communication		682		183		179		1,045		537
Professional fees		601		175		91		961		306
Amortization of core deposit intangible		216		-		-		216		-
Directors’ fees		133		124		123		378		354
Foreclosed assets, net		2		11		7		13		(102)
Advertising and marketing		125		47		35		205		94
Other		494		289		235		1,017		727
Total non-interest expense		4,772		2,380		2,202		9,435		6,362
Income before income tax expense		1,299		676		599		2,659		1,953
Income tax expense		321		152		110		599		357
NET INCOME	$	978	$	524	$	489	$	2,060	$	1,596

Earnings per share:
Basic	$	0.27	$	0.15	$	0.13	$	0.57	$	0.43
Diluted		0.27		0.14		0.13		0.56		0.43


CATALYST BANCORP, INC.
SELECTED FINANCIAL DATA
(Unaudited)

	Three Months Ended									Nine Months Ended
(Dollars in thousands)	9/30/2026			6/30/2026			9/30/2025			9/30/2026			9/30/2025
EARNINGS DATA
Total interest income	$	7,732		$	3,584		$	3,513		$	14,886		$	10,348
Total interest expense		2,580			993			1,063			4,598			3,065
Net interest income		5,152			2,591			2,450			10,288			7,283
Reversal of credit losses		(261)			(104)			(36)			(435)			(36)
Total non-interest income		658			361			315			1,371			996
Total non-interest expense		4,772			2,380			2,202			9,435			6,362
Income tax expense		321			152			110			599			357
Net income	$	978		$	524		$	489		$	2,060		$	1,596

AVERAGE BALANCE SHEET DATA
Total loans	$	355,106		$	163,650		$	167,032		$	229,784		$	166,938
Total interest-earning assets		549,482			269,539			251,004			363,976			248,959
Total assets		594,214			292,262			272,987			394,180			270,686
Total interest-bearing deposits		358,348			162,854			150,421			229,523			149,837
Total interest-bearing liabilities		425,811			172,627			161,120			259,178			159,805
Total deposits		440,059			198,754			179,825			279,877			178,795
Total shareholders' equity		82,950			82,339			81,136			82,479			80,727

SELECTED RATIOS
Return on average assets		0.65	%		0.72	%		0.71	%		0.70	%		0.79	%
Return on average equity		4.68			2.55			2.39			3.34			2.64
Efficiency ratio		82.13			80.64			79.67			80.92			76.85
Net interest margin^(TE)		3.73			3.86			3.88			3.78			3.92
Average equity to average assets		13.96			28.17			29.72			20.92			29.82
Common equity Tier 1 capital ratio⁽¹⁾		14.97			43.37			43.95
Tier 1 leverage capital ratio⁽¹⁾		10.64			26.55			27.58
Total risk-based capital ratio⁽¹⁾		16.22			44.62			45.20

NON-FINANCIAL DATA
Total employees (full-time equivalent)		83			49			49
Common shares issued and outstanding, end of period		4,045,908			4,034,091			4,129,604

(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									Nine Months Ended
(Dollars in thousands)	9/30/2026			6/30/2026			9/30/2025			9/30/2026		9/30/2025
ALLOWANCE FOR CREDIT LOSSES
Loans:
Beginning balance	$	2,185		$	2,295		$	2,431		$	2,367	$	2,522
ACL on purchased loans at acquisition		3,639			-			-			3,639		-
Reversal of credit losses		(189)			(109)			(32)			(333)		(42)
Charge-offs		(16)			(18)			(37)			(83)		(153)
Recoveries		24			17			35			53		70
Net recoveries (charge-offs)		8			(1)			(2)			(30)		(83)
Ending balance	$	5,643		$	2,185		$	2,397		$	5,643	$	2,397

Unfunded commitments:
Beginning balance	$	181		$	176		$	131		$	211	$	121
ACL on purchased commitments at acquisition		64			-			-			64		-
Provision for (reversal of) credit losses on unfunded commitments		(72)			5			(4)			(102)		6
Ending balance	$	173		$	181		$	127		$	173	$	127

Total reversal of credit losses	$	(261)		$	(104)		$	(36)		$	(435)	$	(36)

CREDIT QUALITY⁽¹⁾
Non-accruing loans	$	4,051		$	2,175		$	1,459
Accruing loans 90 days or more past due		377			147			364
Total non-performing loans		4,428			2,322			1,823
Foreclosed assets		-			5			76
Total non-performing assets	$	4,428		$	2,327		$	1,899

Total non-performing loans to total loans		1.15	%		1.43	%		1.11	%
Total non-performing assets to total assets		0.70			0.80			0.67

(1)

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

Non-GAAP Reconciliation

This news release contains financial measures that are not prepared in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP financial measures as supplemental tools to evaluate the Company's operating performance and trends. The non-GAAP financial information presented herein excludes merger-related expenses, the amortization of acquired intangible assets, and intangible assets.

Management uses these measures to evaluate operating performance and believes they help investors compare results across periods affected by merger-related expenses and assess earnings relative to the Company’s tangible equity base. Management also believes these adjustments are useful to investors because they remove the impact of items that are not considered indicative of the Company's core operating performance and that may vary significantly from period to period. Accordingly, management believes that presenting financial results excluding these items enhances investors' ability to evaluate the Company's underlying operating results, compare performance across reporting periods, and assess performance relative to peers.

These non-GAAP financial measures should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP. In addition, because non-GAAP financial measures are not standardized, they may not be comparable to similarly titled measures presented by other companies. A reconciliation of the non-GAAP financial measures included herein to their most directly comparable GAAP measures is presented below.


	Three Months Ended
(Dollars in thousands, except per share data)	9/30/2026			6/30/2026			9/30/2025
Non-GAAP Reconciliation
Reported net income	$	978		$	524		$	489
Lakeside merger-related expenses		1,003			87			-
Income tax expense impact of Lakeside merger-related expenses		(120)			14			-
Non-GAAP net income	$	1,861		$	625		$	489
Core deposit intangible amortization		216			-			-
Income tax expense impact of core deposit intangible amortization		(45)			-			-
Non-GAAP tangible net income	$	2,032		$	625		$	489

Reported earnings per share - diluted	$	0.27		$	0.14		$	0.13
Lakeside merger-related expenses, net tax		0.24			0.03			-
Non-GAAP earnings per share - diluted	$	0.51		$	0.17		$	0.13

Total shareholders' equity	$	81,953		$	82,530		$	81,585
Intangible assets		(11,477)			-			-
Non-GAAP tangible shareholders' equity	$	70,476		$	82,530		$	81,585

Return on average assets		0.65	%		0.72	%		0.71	%
Lakeside merger-related expenses, net tax		0.59			0.14			-
Non-GAAP return on average assets		1.24	%		0.86	%		0.71	%

Return on average equity		4.68	%		2.55	%		2.39	%
Lakeside merger-related expenses, net tax		4.22			0.50			-
Intangible assets		2.15			-			-
Non-GAAP return on average tangible common equity⁽¹⁾		11.05	%		3.05	%		2.39	%

(1)

Non-GAAP return on average tangible common equity is a non-GAAP financial measure calculated by dividing annualized net income available to common shareholders, adjusted to exclude merger-related expenses and the amortization of intangible assets, by average tangible common equity. Tangible common equity is defined as total common shareholders' equity, less goodwill and other intangible assets.

Source: View Original Filing on SEC EDGAR

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