Catalyst Bancorp (CLST) insider sale: Zanco tax-related disposition and option holdings
Rhea-AI Filing Summary
Joseph B. Zanco, President and CEO and a director of Catalyst Bancorp, Inc. (CLST), reported a sale and multiple holdings on Form 4. On 09/01/2025 he disposed of 1,158 shares of common stock at $12.83 to satisfy tax obligations from a stock benefit distribution. After the sale he beneficially owns 32,870 shares directly. He also reports 15,000 shares held indirectly by spouse, 2,458.9121 shares in the Catalyst Bank 401(k) plan, 6,474.1176 shares in the ESOP and 22,009 shares in an IRA. He holds two option grants exercisable for 52,900 and 13,225 shares with exercise prices of $13.30 (expiring 09/01/2032) and $12.08 (expiring 06/10/2035), respectively, with stated vesting schedules. The Form 4 was signed by a P.O.A. on 09/02/2025.
Positive
- Substantial insider ownership: 32,870 shares directly plus significant indirect holdings (15,000 spouse; 2,458.9121 401(k); 6,474.1176 ESOP; 22,009 IRA).
- Long-term incentive alignment: Two option grants totaling 66,125 shares with multi-year vesting schedules, linking executive compensation to future performance.
Negative
- None.
Insights
TL;DR: Insider sold a modest number of shares to cover taxes while retaining substantial equity and vested/unvested option exposure.
The sale of 1,158 shares at $12.83 was explicitly noted as a disposition to meet tax obligations, not a trading decision for liquidity. Post-transaction direct ownership of 32,870 shares plus indirect holdings and long-dated options indicates continued alignment with shareholder value. The two option grants create potential future dilution but are long-dated and subject to multi-year vesting schedules; their strike prices are near the reported sale price, which is informative for assessing exercise incentives over time.
TL;DR: Reporting person remains a significant insider-holder with structured compensation via time-based equity and retirement plan allocations.
The Form 4 documents that Zanco occupies both executive and board roles and that equity compensation is split across direct grants, retirement plans, an ESOP and spouse-held shares. The disposition was characterized as tax-related, and the filing was executed by a power of attorney, both common for routine insider reporting. Vesting schedules beginning in 2023 and 2026 provide clear timelines for future potential insider dilution and executive retention incentives.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Tax Withholding | Common Stock | 1,158 | $12.83 | $15K |
| 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 8,464 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 21,160 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.
