Catalyst Bancorp (CLST) CFO reports tax-related sale; holds 9,000 options
Rhea-AI Filing Summary
Jacques L.J. Bourque, Chief Financial Officer and director of Catalyst Bancorp, Inc. (CLST), reported insider transactions on Form 4. The filing shows a single sale of 131 shares of common stock on 09/01/2025 at $12.83 per share to satisfy a tax obligation related to a stock benefit plan. After the sale, Mr. Bourque directly owns 3,597 shares. He also holds 687.9343 shares indirectly in the Catalyst Bank 401(k) plan, 2,040.8886 shares indirectly via the ESOP, and two custodial positions of 100 shares each for Quinn and Levi Bourque.
Derivative holdings include two stock option grants exercisable for 5,000 shares at $13.30 (vesting 20% per year from 09/01/2023) and 4,000 shares at $12.08 (vesting 20% per year commencing 06/10/2026).
Positive
- Transparent disclosure of the tax-related sale and all beneficial ownership categories (direct, 401(k), ESOP, custodial).
- Retention of significant equity and option positions (3,597 direct shares plus 9,000 options outstanding) indicates ongoing alignment with shareholders.
- Options vesting schedules disclosed, clarifying future potential dilution and executive incentives.
Negative
- Disposition of shares (131 shares sold) reduces direct share ownership, though sale is stated as tax-related.
- Some shares remain unvested (800 unvested from a 2022 grant), which could delay full alignment until vesting completes.
Insights
TL;DR: Routine, tax-related insider sale with continued significant equity and option holdings; not a clearly material change to ownership.
The Form 4 documents a small disposition of 131 shares by the CFO to meet tax obligations from a stock benefit plan. Post-transaction direct ownership of 3,597 shares and meaningful indirect positions through the 401(k) and ESOP remain. The reporting person also holds two option grants totaling 9,000 underlying shares with staged vesting schedules. This pattern—sale to cover taxes and retention of substantial equity and options—generally signals routine administrative action rather than a vote of no confidence, and the transaction size is limited relative to total holdings disclosed here.
TL;DR: Disclosure is timely and follows Form 4 rules; sale is documented as tax-related and details on vesting and plan holdings are provided.
The filing clearly states the reason for the disposition (to meet tax obligations) and itemizes all beneficial ownership types: direct, indirect via 401(k) and ESOP, and custodial accounts. It also discloses option strike prices, exercisable amounts, and vesting commencement dates. From a governance perspective, the form provides transparent reporting of potential conflicts and insider liquidity events consistent with Section 16 requirements.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Tax Withholding | Common Stock | 131 | $12.83 | $2K |
| holding | Stock Option (Right to Buy) | -- | -- | -- |
| holding | Stock Option (Right to Buy) | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
Footnotes (1)
- Disposition solely to meet tax obligation for distribution from stock benefit plan. Includes 800 shares granted pursuant to the Issuer's 2022 Recognition and Retention Plan and Trust Agreement that reflect the unvested portion of a grant amount originally covering 2,000 shares that commenced vesting 20% per year on September 1, 2023. Includes shares acquired in the Catalyst Bank 401(k) Plan since the last filed Form 4, based on a report dated August 27, 2025. Includes shares allocated to the reporting person's account in the ESOP since the last filed Form 4, as of December 31, 2024. The options are vesting at a rate of 20% per year that commenced on September 1, 2023. The options vest at a rate of 20% per year commencing on June 10, 2026.
