Catalyst Bancorp, Inc. Announces 2025 Fourth Quarter Results

OPELOUSAS, La., Jan. 29, 2026 /PRNewswire/ -- 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."

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

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

Other loans

Commercial and industrial

31,205

25,665

5,540

Consumer

1,895

2,833

(938)

(33)

Total other loans

33,100

28,498

4,602

Total loans

170,210

164,767

5,443

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

Health service facilities

10,547

9,695

852

Other commercial construction and land

2,112

1,772

340

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

Industrial equipment

7,064

7,865

(801)

(10)

Professional services

3,531

3,187

344

Other commercial and industrial

3,315

5,081

(1,766)

(35)

Total commercial and industrial loans

31,205

25,665

5,540

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.

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

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

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.

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

3.08

10,699

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%.

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.

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.

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. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

(Dollars in thousands)

12/31/2025

9/30/2025

12/31/2024

ASSETS

Non-interest-bearing cash

4,132

4,515

4,076

Interest-bearing cash and due from banks

21,073

32,756

40,219

Total cash and cash equivalents

25,205

37,271

44,295

Investment securities:

Securities available-for-sale, at fair value

50,467

44,853

28,712

Securities held-to-maturity

14,917

14,945

13,447

Loans receivable, net of unearned income

170,210

164,767

167,076

Allowance for credit losses

(2,367)

(2,397)

(2,522)

Loans receivable, net

167,843

162,370

164,554

Accrued interest receivable

907

861

851

Foreclosed assets

194

Premises and equipment, net

5,850

5,954

6,085

Stock in correspondent banks, at cost

1,139

939

1,961

Bank-owned life insurance

14,983

14,849

14,489

Other assets

1,582

1,716

2,109

TOTAL ASSETS

282,927

283,834

276,697

LIABILITIES

Deposits:

Non-interest-bearing

29,991

27,617

28,281

Interest-bearing

155,283

158,755

157,393

Total deposits

185,274

186,372

185,674

Borrowings

14,732

14,693

9,558

Other liabilities

1,196

1,184

1,261

TOTAL LIABILITIES

201,202

202,249

196,493

SHAREHOLDERS' EQUITY

Common stock

Additional paid-in capital

37,363

37,997

39,561

Unallocated common stock held by benefit plans

(5,182)

(5,260)

(5,702)

Retained earnings

51,912

51,456

49,860

Accumulated other comprehensive loss

(2,409)

(2,649)

(3,558)

TOTAL SHAREHOLDERS' EQUITY

81,725

81,585

80,204

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

282,927

283,834

276,697

CATALYST BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended

Year Ended

(Dollars in thousands)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

INTEREST INCOME

Loans receivable, including fees

2,815

2,816

2,814

11,161

10,128

Investment securities

511

345

273

1,425

1,063

Cash and due from banks

215

345

401

1,254

2,585

Other

Total interest income

3,548

3,513

3,511

13,896

13,862

INTEREST EXPENSE

Deposits

942

983

859

3,791

3,229

Borrowings

180

315

1,088

Total interest expense

1,041

1,063

1,039

4,106

4,317

Net interest income

2,507

2,450

2,472

9,790

9,545

Provision for (reversal of) credit losses

(36)

531

Net interest income after provision for

(reversal of) credit losses

2,411

2,486

2,472

9,730

9,014

NON-INTEREST INCOME (LOSS)

Service charges on deposit accounts

210

172

201

781

798

Bank-owned life insurance

134

123

119

494

463

Loss on sales of investment securities

(5,507)

Other income on foreclosed assets

216

Gain (loss) on sale of fixed assets

(1)

Federal community development grant

280

Other

120

Total non-interest income (loss)

362

315

337

1,574

(3,840)

NON-INTEREST EXPENSE

Salaries and employee benefits

1,334

1,312

1,227

5,153

4,830

Occupancy and equipment

196

220

193

823

765

Data processing and communication

181

179

718

1,349

Professional fees

404

469

Directors' fees

123

116

477

461

ATM and debit card

103

141

Foreclosed assets, net

131

Advertising and marketing

131

129

Other

208

211

188

860

939

Total non-interest expense

2,222

2,202

2,038

8,800

9,157

Income (loss) before income tax expense

(benefit)

551

599

771

2,504

(3,983)

Income tax expense (benefit)

110

145

452

(894)

NET INCOME (LOSS)

456

489

626

2,052

(3,089)

Earnings (loss) per share:

Basic

0.13

0.16

0.56

(0.78)

Diluted

0.13

0.16

0.56

(0.78)

CATALYST BANCORP, INC. AND SUBSIDIARY

SELECTED FINANCIAL DATA

(Unaudited)

Three Months Ended

Year Ended

(Dollars in thousands)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

EARNINGS DATA

Total interest income

3,548

3,513

3,511

13,896

13,862

Total interest expense

1,041

1,063

1,039

4,106

4,317

Net interest income

2,507

2,450

2,472

9,790

9,545

Provision for (reversal of) credit losses

(36)

531

Total non-interest income (loss)

362

315

337

1,574

(3,840)

Total non-interest expense

2,222

2,202

2,038

8,800

9,157

Income tax expense (benefit)

110

145

452

(894)

Net income (loss)

456

489

626

2,052

(3,089)

AVERAGE BALANCE SHEET DATA

Total loans

167,335

167,032

167,187

167,038

155,867

Total interest-earning assets

255,254

251,004

251,058

250,546

261,654

Total assets

277,546

272,987

272,443

272,415

281,817

Total interest-bearing deposits

152,387

150,421

142,149

150,480

143,250

Total interest-bearing liabilities

165,271

161,120

160,812

161,183

169,643

Total deposits

181,537

179,825

170,991

179,486

172,092

Total shareholders' equity

81,739

81,136

80,988

80,982

81,480

SELECTED RATIOS

Return on average assets

0.65

0.71

0.91

0.75

(1.10)

Return on average equity

2.22

2.39

3.08

2.53

(3.79)

Efficiency ratio

77.40

79.67

72.54

77.43

160.51

Net interest margin (TE)

3.91

3.88

3.92

3.65

Average equity to average assets

29.45

29.72

29.73

28.91

Common equity Tier 1 capital ratio (1)

42.45

43.95

45.81

Tier 1 leverage capital ratio (1)

27.36

27.58

28.73

Total risk-based capital ratio (1)

43.71

45.20

47.07

NON-FINANCIAL DATA

Total employees (full-time equivalent)

Common shares issued and outstanding,

end of period

4,074,911

4,129,604

4,278,150

(1) Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change.

CATALYST BANCORP, INC. AND SUBSIDIARY

SELECTED FINANCIAL DATA

(continued)

Three Months Ended

Year Ended

(Dollars in thousands)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

ALLOWANCE FOR CREDIT LOSSES

Loans:

Beginning balance

2,397

2,431

2,414

2,522

2,124

Provision for (reversal of) credit losses

(32)

110

(30)

667

Charge-offs

(60)

(37)

(28)

(213)

(392)

Recoveries

123

Net charge-offs

(42)

(2)

(125)

(269)

Ending balance

2,367

2,397

2,522

2,367

2,522

Unfunded commitments:

Beginning balance

127

131

231

121

257

Provision for (reversal of) credit losses

on unfunded commitments

(4)

(110)

(136)

Ending balance

211

127

121

211

121

Total provision for (reversal of) credit losses

(36)

531

CREDIT QUALITY (1)

Non-accruing loans

2,248

1,459

1,567

Accruing loans 90 days or more past due

395

364

Total non-performing loans

2,643

1,823

1,631

Foreclosed assets

194

Total non-performing assets

2,677

1,899

1,825

Total non-performing loans to total loans

1.55

1.11

0.98

Total non-performing assets to total assets

0.95

0.67

0.66

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

For more information:

Joe Zanco, President and CEO

(337) 948-3033

SOURCE Catalyst Bancorp, Inc.