Catalyst Bancorp Inc.
01/29/2026 | Press release | Distributed by Public on 01/29/2026 15:44
Catalyst Bancorp, Inc. Announces 2025 Fourth Quarter Results (Form 8-K)
Catalyst Bancorp, Inc. Announces 2025 Fourth 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 $456,000, or $0.13 per diluted common share ("diluted EPS"), for the fourth quarter of 2025, compared to net income of $489,000, or $0.13 diluted EPS, for the third quarter of 2025. For the year ended December 31, 2025, the Company reported net income of $2.1 million, or $0.56 diluted EPS, compared to a net loss of $3.1 million for the year ended December 31, 2024.
"Loan growth was strong during the quarter," said Joe Zanco, President and Chief Executive Officer of the Company and Bank. "We're also pleased to see our net interest margin widen as funding costs declined."
1
Loans
Loans totaled $170.2 million at December 31, 2025, up $5.4 million, or 3%, from September 30, 2025. The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.
|
(Dollars in thousands) |
12/31/2025 |
9/30/2025 |
Change |
|||||||||
|
Real estate loans |
||||||||||||
|
One- to four-family residential |
$ |
80,123 |
$ |
78,373 |
$ |
1,750 |
2 |
% |
||||
|
Commercial real estate |
32,872 |
33,679 |
(807) |
(2) |
||||||||
|
Construction and land |
18,806 |
18,850 |
(44) |
- |
||||||||
|
Multi-family residential |
5,309 |
5,367 |
(58) |
(1) |
||||||||
|
Total real estate loans |
137,110 |
136,269 |
841 |
1 |
||||||||
|
Other loans |
||||||||||||
|
Commercial and industrial |
31,205 |
25,665 |
5,540 |
22 |
% |
|||||||
|
Consumer |
1,895 |
2,833 |
(938) |
(33) |
||||||||
|
Total other loans |
33,100 |
28,498 |
4,602 |
16 |
||||||||
|
Total loans |
$ |
170,210 |
$ |
164,767 |
$ |
5,443 |
3 |
|||||
During the fourth quarter of 2025, a $2.2 million construction loan was converted to a fixed-rate residential mortgage loan. The increase in commercial and industrial loans during the fourth quarter of 2025 was largely driven by growth within the oilfield services segment of our loan portfolio.
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) |
12/31/2025 |
9/30/2025 |
Change |
|||||||||
|
Commercial real estate |
||||||||||||
|
Retail |
$ |
9,455 |
$ |
9,725 |
$ |
(270) |
(3) |
% |
||||
|
Hospitality |
5,632 |
5,742 |
(110) |
(2) |
||||||||
|
Health service facilities |
3,300 |
3,325 |
(25) |
(1) |
||||||||
|
Restaurants |
1,071 |
1,095 |
(24) |
(2) |
||||||||
|
Oilfield services |
365 |
374 |
(9) |
(2) |
||||||||
|
Other non-owner occupied |
2,349 |
2,380 |
(31) |
(1) |
||||||||
|
Other owner occupied |
10,700 |
11,038 |
(338) |
(3) |
||||||||
|
Total commercial real estate |
$ |
32,872 |
$ |
33,679 |
$ |
(807) |
(2) |
|||||
|
Construction and land |
||||||||||||
|
Multi-family residential |
$ |
4,749 |
$ |
4,692 |
$ |
57 |
1 |
% |
||||
|
Health service facilities |
10,547 |
9,695 |
852 |
9 |
||||||||
|
Other commercial construction and land |
2,112 |
1,772 |
340 |
19 |
||||||||
|
Consumer residential construction and land |
1,398 |
2,691 |
(1,293) |
(48) |
||||||||
|
Total construction and land |
$ |
18,806 |
$ |
18,850 |
$ |
(44) |
- |
|||||
|
Commercial and industrial |
||||||||||||
|
Oilfield services |
$ |
17,295 |
$ |
9,532 |
$ |
7,763 |
81 |
% |
||||
|
Industrial equipment |
7,064 |
7,865 |
(801) |
(10) |
||||||||
|
Professional services |
3,531 |
3,187 |
344 |
11 |
||||||||
|
Other commercial and industrial |
3,315 |
5,081 |
(1,766) |
(35) |
||||||||
|
Total commercial and industrial loans |
$ |
31,205 |
$ |
25,665 |
$ |
5,540 |
22 |
|||||
2
Credit Quality and Allowance for Credit Losses
At December 31, 2025, non-performing assets ("NPAs") totaled $2.7 million, compared to $1.9 million at September 30, 2025. The increase in NPAs was mainly due to an increase in non-accruing one- to four-family residential mortgage loans. The ratio of NPAs to total assets was 0.95% and 0.67% at December 31 and September 30, 2025, respectively. Non-performing loans ("NPLs") were 1.55% and 1.11% of total loans at December 31 and September 30, 2025, respectively. At December 31, 2025, 95% of total NPLs were one- to four-family residential mortgage loans, compared to 99% at September 30, 2025.
At December 31, 2025, the allowance for credit losses on loans totaled $2.4 million, or 1.39% of total loans, compared to $2.4 million, or 1.45% of total loans, at September 30, 2025. The provision for credit losses was $96,000 for the fourth quarter of 2025, compared to a $36,000 reversal of provision for credit losses for the third quarter of 2025. The provision for credit losses during the fourth quarter of 2025 was primarily driven by an increase in construction loan commitments and loan growth. Net loan charge-offs totaled $42,000 during the fourth quarter of 2025, compared to net charge-offs of $2,000 during the third quarter of 2025. Net loan charge-offs during 2025 have been primarily related to residential mortgage loans and overdrawn deposit accounts.
Investment Securities
Total investment securities were $65.4 million, or 23% of total assets, at December 31, 2025, up $5.6 million, or 9%, compared to September 30, 2025. During the fourth quarter of 2025, we purchased $5.0 million of variable-rate and $2.4 million of fixed-rate government-sponsored mortgage-backed securities. The weighted average yield of the securities purchased during the fourth quarter was 4.63% at December 31, 2025.
3
Deposits
Total deposits were $185.3 million at December 31, 2025, down $1.1 million, or 1%, from September 30, 2025. Total deposits averaged $181.5 million during the fourth quarter of 2025, compared to $179.8 million during the third quarter of 2025. The ratio of the Company's total loans to total deposits was 92% and 88% at December 31 and September 30 2025, respectively.
The following table sets forth the composition of the Company's deposits as of the dates indicated.
|
(Dollars in thousands) |
12/31/2025 |
9/30/2025 |
Change |
|||||||||
|
Non-interest-bearing demand deposits |
$ |
29,991 |
$ |
27,617 |
$ |
2,374 |
9 |
% |
||||
|
Interest-bearing demand deposits |
32,851 |
35,748 |
(2,897) |
(8) |
||||||||
|
Money market |
10,235 |
11,783 |
(1,548) |
(13) |
||||||||
|
Savings |
53,831 |
52,152 |
1,679 |
3 |
||||||||
|
Certificates of deposit |
58,366 |
59,072 |
(706) |
(1) |
||||||||
|
Total deposits |
$ |
185,274 |
$ |
186,372 |
$ |
(1,098) |
(1) |
|||||
The increase in non-interest-bearing demand deposits was primarily due to an increase in commercial deposits.
The decline in interest-bearing demand deposits was primarily due to a decrease in public fund deposits. Total public fund deposits amounted to $26.4 million, or 14% of total deposits, at December 31, 2025, compared to $30.5 million, or 16% of total deposits, at September 30, 2025. At December 31 and September 30, 2025, approximately 59% and 64%, respectively, of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits.
The decline in money market deposits was largely driven by decreases in balances of high-yield, personal deposits.
Capital and Share Repurchases
At December 31 and September 30, 2025, consolidated shareholders' equity totaled $81.7 million, or 28.9% of total assets, and $81.6 million, or 28.7% of total assets, respectively.
The Company repurchased 54,693 shares of its common stock at an average cost per share of $14.76 during the fourth quarter of 2025, compared to 13,212 shares at an average cost per share of $12.93 during the third quarter of 2025. During the fourth quarter of 2025, the Company completed repurchases under the November 2024 Repurchase Plan and announced the Company's 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 December 31, 2025, 188,911 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 December 31, 2025, the Company has repurchased a total of 1,215,089 shares of its common stock, or 23% of the common shares originally issued, at an average cost per share of $12.06. At December 31, 2025, the Company had common shares outstanding of 4,074,911.
4
Net Interest Income
The net interest margin for the fourth quarter of 2025 was 3.91%, up three basis points compared to the prior quarter. For the fourth quarter of 2025, the average yield on interest-earning assets was 5.53%, down three basis points from the prior quarter, and the average rate paid on interest-bearing liabilities was 2.50%, down 12 basis points from the third quarter of 2025.
Net interest income for the fourth quarter of 2025 was $2.5 million, up $57,000, or 2%, compared to the third quarter of 2025. Total interest income was up $35,000, or 1%, in the fourth quarter of 2025 compared to the prior quarter largely due to an increase in income on investment securities, which was partially offset by a decline in interest income on cash and due from banks. The change in interest income was largely the result of bond purchases during the third and fourth quarters of 2025. Total interest expense decreased $22,000, or 2%, in the fourth quarter of 2025 compared to the prior quarter. The decline in interest expense was mainly due to lower interest rates on public fund deposits and high-yield savings accounts during the fourth quarter of 2025. The decline in interest expense on deposits was partially offset by an increase in interest expense on borrowings due to an increase in the volume of short-term FHLB advances during the fourth quarter of 2025.
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 |
||||||||||||||||||
|
12/31/2025 |
9/30/2025 |
|||||||||||||||||
|
(Dollars in thousands) |
Average Balance |
Interest |
Average Yield/ Rate(TE) |
|
Average Balance |
Interest |
Average Yield/ Rate(TE) |
|||||||||||
|
INTEREST-EARNING ASSETS |
|
|
|
|
|
|
||||||||||||
|
Loans receivable(1) |
$ |
167,335 |
$ |
2,815 |
6.68 |
% |
$ |
167,032 |
$ |
2,816 |
6.69 |
% |
||||||
|
Investment securities(2) |
65,352 |
511 |
3.17 |
51,731 |
345 |
2.71 |
||||||||||||
|
Other interest earning assets |
22,567 |
222 |
3.91 |
32,241 |
352 |
4.33 |
||||||||||||
|
Total interest-earning assets |
$ |
255,254 |
$ |
3,548 |
5.53 |
$ |
251,004 |
$ |
3,513 |
5.56 |
||||||||
|
INTEREST-BEARING LIABILITIES |
|
|
|
|
||||||||||||||
|
Demand deposits, money market, and savings accounts |
$ |
93,710 |
$ |
467 |
1.98 |
% |
$ |
94,308 |
$ |
529 |
2.22 |
% |
||||||
|
Certificates of deposit |
58,677 |
475 |
3.21 |
56,113 |
454 |
3.21 |
||||||||||||
|
Total interest-bearing deposits |
152,387 |
942 |
2.45 |
150,421 |
983 |
2.59 |
||||||||||||
|
Borrowings |
12,884 |
99 |
3.08 |
10,699 |
80 |
2.97 |
||||||||||||
|
Total interest-bearing liabilities |
$ |
165,271 |
$ |
1,041 |
2.50 |
$ |
161,120 |
$ |
1,063 |
2.62 |
||||||||
|
Net interest-earning assets |
$ |
89,983 |
$ |
89,884 |
||||||||||||||
|
Net interest income; average interest rate spread |
$ |
2,507 |
3.03 |
% |
$ |
2,450 |
2.94 |
% |
||||||||||
|
Net interest margin(3) |
3.91 |
3.88 |
||||||||||||||||
| (1) | Includes non-accrual loans during the respective periods. Calculated net of deferred fees and discounts and loans in-process. |
| (2) | Average investment securities does 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%. |
5
Non-interest Income
Non-interest income for the fourth quarter of 2025 totaled $362,000, up $47,000, or 15%, compared to the third quarter of 2025. During the third quarter of 2025, we corrected an immaterial technical error related to fees charged for the use of foreign ATMs and refunded $30,000 of fees that were applied in error. The refunded fees decreased income from service charges on deposit accounts for the third quarter of 2025.
Income from bank-owned life insurance increased by $11,000, or 9%, for the fourth quarter of 2025 compared to the prior quarter largely due to an internal exchange of certain existing policies.
Non-interest Expense
Non-interest expense for the fourth quarter of 2025 totaled $2.2 million, up $20,000, or 1%, compared to the third quarter of 2025.
Salaries and employee benefits expense for the fourth quarter of 2025 totaled $1.3 million, up $22,000, or 2%, from the prior quarter. The increase was largely due to a new hire, an increase in compensation expense related to the Employee Stock Ownership Plan due to a rise in the Company's average stock price, and annual raises that were made effective during the fourth quarter of 2025.
Occupancy and equipment expense for the fourth quarter of 2025 totaled $196,000, down $24,000, or 11%, from the prior quarter. During the third quarter of 2025, the Company incurred additional repairs and maintenance costs for a vandalized ATM. During the fourth quarter of 2025, landscaping and utilities expenses were down driven by cooler temperatures during the last three months of the year.
Foreclosed assets expense for the fourth quarter of 2025 totaled $17,000, up $10,000 from the prior quarter. In the fourth quarter of 2025, the Company incurred a loss of $14,000 on the sale of foreclosed real estate. The third quarter of 2025 included a $4,000 write-down on foreclosed assets.
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 $282.9 million in assets at December 31, 2025. Catalyst Bank, formerly St. Landry Homestead Federal Savings Bank, has been in operation in the Acadiana region of south-central Louisiana since 1922. With a focus on fueling business and improving lives throughout the region, Catalyst Bank offers commercial and retail banking products through our six full-service branches located in Carencro, Eunice, Lafayette, Opelousas, and Port Barre. 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.
6
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 expectation 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, 2024, 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.
Catalyst Bancorp Inc. published this content on January 29, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on January 29, 2026 at 21:44 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]