Catalyst Bancorp, Inc. Announces 2025 First Quarter Results

2025-04-24 19:00

OPELOUSAS, La., April 24, 2025 /PRNewswire/ -- Catalyst Bancorp, Inc. (Nasdaq: "CLST") (the "Company"), the parent company for Catalyst Bank (the "Bank") (www.catalystbank.com), reported net income of $586,000 for the first quarter of 2025, compared to net income of $626,000 for the fourth quarter of 2024.

"Loan growth was muted to start the year as market turbulence caused some of our customers to delay projects," said Joe Zanco, President and Chief Executive Officer of the Company and Bank. "On a brighter note, we were grateful to have received the 'Best Community Banks to Work For' Award at the ICBA's Live Conference in Nashville in March. Our employees continue to do a great job living our values of Truth, Humility, Impact, Now and Connection."

Loans

Loans totaled $166.1 million at March 31, 2025, down $1.0 million, or less than 1%, from December 31, 2024. The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.


*(Dollars in thousands)*	3/31/2025		12/31/2024		Change
Real estate loans
One- to four-family residential	$	82,025	$	81,097	$	928	1	%
Commercial real estate		22,103		22,108		(5)	-
Construction and land		32,038		32,941		(903)	(3)
Multi-family residential		2,530		2,570		(40)	(2)
Total real estate loans		138,696		138,716		(20)	-
Other loans
Commercial and industrial		25,447		26,439		(992)	(4)	%
Consumer		1,934		1,921		13	1
Total other loans		27,381		28,360		(979)	(3)
Total loans	$	166,077	$	167,076	$	(999)	(1)

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)*	3/31/2025		12/31/2024		Change
Commercial real estate
Retail	$	3,723	$	4,005	$	(282)	(7)	%
Hospitality		3,342		3,460		(118)	(3)
Restaurants		1,070		1,091		(21)	(2)
Oilfield services		393		402		(9)	(2)
Other non-owner occupied		2,479		2,658		(179)	(7)
Other owner occupied		11,096		10,492		604	6
Total commercial real estate	$	22,103	$	22,108	$	(5)	-
Construction and land
Multi-family residential	$	11,297	$	10,031	$	1,266	13	%
Health service facilities		8,626		7,139		1,487	21
Hospitality		2,716		2,716		-	-
Retail		6,077		5,106		971	19
Other commercial construction and land		1,791		4,364		(2,573)	(59)
Consumer residential construction and land		1,531		3,585		(2,054)	(57)
Total construction and land	$	32,038	$	32,941	$	(903)	(3)
Commercial and industrial
Oilfield services	$	8,474	$	14,823	$	(6,349)	(43)	%
Industrial equipment		8,285		2,831		5,454	193
Professional services		3,119		3,127		(8)	(0)
Other commercial and industrial		5,569		5,658		(89)	(2)
Total commercial and industrial loans	$	25,447	$	26,439	$	(992)	(4)

Credit Quality and Allowance for Credit Losses

At March 31, 2025, non-performing assets ("NPAs") totaled $1.7 million, down $103,000, or 6%, from $1.8 million at December 31, 2024 primarily due to a decline in foreclosed assets. The ratio of NPAs to total assets was 0.63% and 0.66% at March 31, 2025 and December 31, 2024, respectively. Non-performing loans ("NPLs") comprised 0.99% and 0.98% of total loans at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025 and December 31, 2024, 98% of total NPLs were one- to four-family residential mortgage loans.

At both March 31, 2025 and December 31, 2024, the allowance for credit losses on loans totaled $2.5 million, or 1.51% of total loans. The provision for credit losses was zero for the first quarter of 2025 and the fourth quarter of 2024. Net loan charge-offs totaled $39,000 during the first quarter of 2025, compared to net charge-offs of $2,000 for the fourth quarter of 2024. Net loan charge-offs during the first quarter of 2025 were primarily related to residential mortgage loans and overdrawn deposit accounts.

Deposits

Total deposits were $180.6 million at March 31, 2025, down $5.1 million, or 3%, from December 31, 2024. Total deposits averaged $177.1 million during the first quarter of 2025, compared to $171.0 million during the fourth quarter of 2024. The fluctuations in total deposits were mainly due to public funds. The following table sets forth the composition of the Company's deposits as of the dates indicated.


*(Dollars in thousands)*	3/31/2025		12/31/2024		Change
Non-interest-bearing demand deposits	$	26,093	$	28,281	$	(2,188)	(8)	%
Interest-bearing demand deposits		42,737		48,334		(5,597)	(12)
Money market		9,737		10,729		(992)	(9)
Savings		42,542		37,639		4,903	13
Certificates of deposit		59,489		60,691		(1,202)	(2)
Total deposits	$	180,598	$	185,674	$	(5,076)	(3)

The ratio of the Company's total loans to total deposits was 92% at March 31, 2025, compared to 90% at December 31, 2024.

Total public fund deposits amounted to $29.8 million, or 17% of total deposits, at March 31, 2025, compared to $35.6 million, or 19% of total deposits, at December 31, 2024. At March 31, 2025, approximately 80% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits from municipalities within our market.

Capital and Share Repurchases

At March 31, 2025 and December 31, 2024, consolidated shareholders' equity totaled $80.6 million, or 29.7% of total assets, and $80.2 million, or 29.0% of total assets, respectively.

The Company repurchased 72,949 shares of its common stock at an average cost per share of $11.86 during the first quarter of 2025, compared to 120,977 shares at an average cost per share of $11.70 during the fourth quarter of 2024. Under the Company's November 2024 Repurchase Plan, 114,201 shares of the Company's common stock were available for repurchase at March 31, 2025. Since the announcement of our first share repurchase plan on January 26, 2023 and through March 31, 2025, the Company has repurchased a total of 1,084,799 shares of its common stock, or approximately 21% of the common shares originally issued, at an average cost per share of $11.93. At March 31, 2025, the Company had common shares outstanding of 4,205,201.

Net Interest Income

The net interest margin for the first quarter of 2025 was 3.89%, down three basis points compared to the prior quarter. For the first quarter of 2025, the average yield on interest-earning assets was 5.54%, down three basis points from the prior quarter, and the average rate paid on interest-bearing liabilities was 2.56%, down one basis point from the fourth quarter of 2024.

Net interest income for the first quarter of 2025 was $2.4 million, down $107,000, or 4%, compared to the fourth quarter of 2024. Total interest income was down $137,000, or 4%, in the first quarter of 2025 compared to the prior quarter primarily due to a decline in income on residential mortgage loans, commercial and industrial loans, and interest-earning cash. Total interest expense decreased $30,000, or 3%, in the first quarter of 2025 compared to the prior quarter. During the fourth quarter of 2024, the Bank's $20.0 million BTFP advance was paid off, which led to a decline in interest expense on borrowings of $112,000 for the first quarter of 2025 compared to the fourth quarter of 2024. The decline in interest expense on borrowings was partially offset by an increase in interest expense on deposits that was largely driven by an increase in the cost of public fund deposits.

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
	3/31/2025						12/31/2024
*(Dollars in thousands)*	Average Balance		Interest		Average Yield/ Rate^(TE)		Average Balance		Interest		Average Yield/ Rate^(TE)
INTEREST-EARNING ASSETS
Loans receivable⁽¹⁾	$	166,145	$	2,738	6.68	%	$	167,187	$	2,814	6.70	%
Investment securities⁽²⁾		46,960		275	2.35			47,764		273	2.30
Other interest earning assets		33,585		361	4.36			36,107		424	4.66
Total interest-earning assets	$	246,690	$	3,374	5.54		$	251,058	$	3,511	5.57
INTEREST-BEARING LIABILITIES
Demand deposits, money market, and savings accounts	$	94,133	$	483	2.08	%	$	85,118	$	394	1.84	%
Certificates of deposit		55,846		458	3.32			57,031		465	3.24
Total interest-bearing deposits		149,979		941	2.54			142,149		859	2.40
Borrowings		9,573		68	2.85			18,663		180	3.85
Total interest-bearing liabilities	$	159,552	$	1,009	2.56		$	160,812	$	1,039	2.57
Net interest-earning assets	$	87,138					$	90,246
Net interest income; average interest rate spread			$	2,365	2.98	%			$	2,472	3.00	%
Net interest margin⁽³⁾					3.89						3.92


(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 first quarter of 2025 totaled $553,000, up $216,000, or 64%, compared to the fourth quarter of 2024. Non-interest income for the first quarter of 2025 included insurance proceeds of $216,000 for fire and flood damages related to foreclosed properties.

Non-interest Expense

Non-interest expense for the first quarter of 2025 totaled $2.2 million, up $160,000, or 8%, compared to the fourth quarter of 2024. Foreclosed assets expense for the first quarter of 2025 included net losses of $88,000 on the sale of foreclosed properties.

Salaries and employee benefits expense totaled $1.2 million for the first quarter of 2025, up $18,000, or 1%, from the prior quarter primarily due to an increase in the cost of employee benefits for 2025.

Advertising and marketing expense totaled $39,000 for the first quarter of 2025, up $22,000, or 129%, from the prior quarter largely driven by an increase in business development activity during the first quarter of 2025.

Other non-interest expense totaled $207,000 for the first quarter of 2025, up $19,000, or 10%, from the prior quarter primarily due to an increase in loan collection 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 $271.6 million in assets at March 31, 2025. Catalyst Bank, formerly St. Landry Homestead Federal Savings Bank, has been in operation in the Acadiana region of south-central Louisiana for over 100 years. 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)				(Unaudited)
*(Dollars in thousands)*	3/31/2025		12/31/2024		3/31/2024
ASSETS
Non-interest-bearing cash	$	4,128	$	4,076	$	3,118
Interest-bearing cash and due from banks		36,190		40,219		72,893
Total cash and cash equivalents		40,318		44,295		76,011
Investment securities:
Securities available-for-sale, at fair value		29,840		28,712		25,534
Securities held-to-maturity		13,445		13,447		13,457
Loans receivable, net of unearned income		166,077		167,076		143,491
Allowance for credit losses		(2,500)		(2,522)		(2,068)
Loans receivable, net		163,577		164,554		141,423
Accrued interest receivable		866		851		733
Foreclosed assets		77		194		237
Premises and equipment, net		6,049		6,085		5,995
Stock in correspondent banks, at cost		809		1,961		1,898
Bank-owned life insurance		14,607		14,489		14,139
Other assets		2,060		2,109		2,622
TOTAL ASSETS	$	271,648	$	276,697	$	282,049

LIABILITIES
Deposits:
Non-interest-bearing	$	26,093	$	28,281	$	28,836
Interest-bearing		154,505		157,393		140,801
Total deposits		180,598		185,674		169,637
Borrowings		9,603		9,558		29,423
Other liabilities		856		1,261		1,736
TOTAL LIABILITIES		191,057		196,493		200,796

SHAREHOLDERS' EQUITY
Common stock		42		43		46
Additional paid-in capital		38,844		39,561		42,711
Unallocated common stock held by benefit plans		(5,649)		(5,702)		(6,169)
Retained earnings		50,446		49,860		48,260
Accumulated other comprehensive income (loss)		(3,092)		(3,558)		(3,595)
TOTAL SHAREHOLDERS' EQUITY		80,591		80,204		81,253
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	271,648	$	276,697	$	282,049

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

	Three Months Ended
*(Dollars in thousands)*	3/31/2025		12/31/2024		3/31/2024
INTEREST INCOME
Loans receivable, including fees	$	2,738	$	2,814	$	2,214
Investment securities		275		273		325
Cash and due from banks		341		401		594
Other		20		23		22
Total interest income		3,374		3,511		3,155
INTEREST EXPENSE
Deposits		941		859		769
Borrowings		68		180		293
Total interest expense		1,009		1,039		1,062
Net interest income		2,365		2,472		2,093
Provision for credit losses		-		-		95
Net interest income after provision for credit losses		2,365		2,472		1,998
NON-INTEREST INCOME
Service charges on deposit accounts		197		201		203
Bank-owned life insurance		118		119		113
Loss on sales of investment securities		-		-		(5,507)
Other income on foreclosed assets		216		-		-
Gain (loss) on disposals and sales of fixed assets		-		-		11
Other		22		17		17
Total non-interest income (loss)		553		337		(5,163)
NON-INTEREST EXPENSE
Salaries and employee benefits		1,245		1,227		1,260
Occupancy and equipment		199		193		196
Data processing and communication		182		179		794
Professional fees		101		94		107
Directors' fees		114		116		115
ATM and debit card		22		17		69
Foreclosed assets, net		89		7		8
Advertising and marketing		39		17		38
Other		207		188		204
Total non-interest expense		2,198		2,038		2,791
Income (loss) before income tax expense (benefit)		720		771		(5,956)
Income tax expense (benefit)		134		145		(1,267)
NET INCOME (LOSS)	$	586	$	626	$	(4,689)

Earnings (loss) per share:
Basic	$	0.16	$	0.16	$	(1.15)
Diluted		0.16		0.16		(1.15)


CATALYST BANCORP, INC. AND SUBSIDIARY
SELECTED FINANCIAL DATA

	Three Months Ended
*(Dollars in thousands)*	3/31/2025			12/31/2024			3/31/2024
EARNINGS DATA
Total interest income	$	3,374		$	3,511		$	3,155
Total interest expense		1,009			1,039			1,062
Net interest income		2,365			2,472			2,093
Provision for credit losses		-			-			95
Total non-interest income (loss)		553			337			(5,163)
Total non-interest expense		2,198			2,038			2,791
Income tax expense (benefit)		134			145			(1,267)
Net income (loss)	$	586		$	626		$	(4,689)

AVERAGE BALANCE SHEET DATA
Total loans	$	166,145		$	167,187		$	144,428
Total interest-earning assets		246,690			251,058			269,835
Total assets		268,232			272,443			286,708
Total interest-bearing deposits		149,979			142,149			146,201
Total interest-bearing liabilities		159,552			160,812			174,192
Total deposits		177,106			170,991			174,656
Total shareholders' equity		80,426			80,988			82,667

SELECTED RATIOS
Return on average assets		0.89	%		0.91	%		(6.58)	%
Return on average equity		2.96			3.08			(22.81)
Efficiency ratio		75.31			72.54			(90.93)
Net interest margin^(TE)		3.89			3.92			3.12
Average equity to average assets		29.98			29.73			28.83
Common equity Tier 1 capital ratio⁽¹⁾		46.95			45.81			52.09
Tier 1 leverage capital ratio⁽¹⁾		29.45			28.73			26.84
Total risk-based capital ratio⁽¹⁾		48.20			47.06			53.34

NON-FINANCIAL DATA
Total employees (full-time equivalent)		49			49			47
Common shares issued and outstanding, end of period		4,205,201			4,278,150			4,558,329


(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
*(Dollars in thousands)*	3/31/2025			12/31/2024			3/31/2024
ALLOWANCE FOR CREDIT LOSSES
Loans:
Beginning balance	$	2,522		$	2,414		$	2,124
Provision for credit losses		17			110			42
Charge-offs		(53)			(28)			(123)
Recoveries		14			26			25
Net (charge-offs) recoveries		(39)			(2)			(98)
Ending balance	$	2,500		$	2,522		$	2,068

Unfunded commitments:
Beginning balance	$	121		$	231		$	257
Provision for (reversal of) credit losses on unfunded commitments		(17)			(110)			53
Ending balance	$	104		$	121		$	310

Total provision for credit losses	$	-		$	-		$	95

CREDIT QUALITY⁽¹⁾
Non-accruing loans	$	1,554		$	1,567		$	1,453
Accruing loans 90 days or more past due		91			64			29
Total non-performing loans		1,645			1,631			1,482
Foreclosed assets		77			194			237
Total non-performing assets	$	1,722		$	1,825		$	1,719

Total non-performing loans to total loans		0.99	%		0.98	%		1.03	%
Total non-performing assets to total assets		0.63			0.66			0.61


(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

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SOURCE Catalyst Bancorp, Inc.

Catalyst Bancorp, Inc. Announces 2025 First Quarter Results

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