Catalyst Bancorp, Inc. Announces 2025 Second Quarter Results
OPELOUSAS, La., July 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 $521,000 for the second quarter of 2025, compared to net income of $586,000 for the first quarter of 2025.
"We're pleased to see both loan and deposit growth during the quarter," said Joe Zanco, President and Chief Executive Officer of the Company and Bank. "When given the opportunity to earn new business, our success rate remains strong. Our team continues to build momentum across our markets."
Loans
Loans totaled $167.6 million at June 30, 2025, up $1.5 million, or less than 1%, from March 31, 2025. The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.
(Dollars in thousands)
6/30/2025
3/31/2025
Change
Real estate loans
One- to four-family residential
$
80,195
$
82,025
$
(1,830)
(2)
%
Commercial real estate
33,976
22,103
11,873
54
Construction and land
20,650
32,038
(11,388)
(36)
Multi-family residential
5,432
2,530
2,902
115
Total real estate loans
140,253
138,696
1,557
1
Other loans
Commercial and industrial
25,035
25,447
(412)
(2)
%
Consumer
2,281
1,934
347
18
Total other loans
27,316
27,381
(65)
-
Total loans
$
167,569
$
166,077
$
1,492
1
In the second quarter of 2025, four construction loans totaling $14.5 million were converted to amortizing real estate loans following the completion of their respective construction projects. Of these, one loan totaling $2.9 million was classified as multi-family, while the remaining loans were designated as commercial real estate.
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)
6/30/2025
3/31/2025
Change
Commercial real estate
Retail
$
9,739
$
3,723
$
6,016
162
%
Hospitality
5,849
3,342
2,507
75
Health service facilities
3,345
389
2,956
760
Restaurants
1,049
1,070
(21)
(2)
Oilfield services
384
393
(9)
(2)
Other non-owner occupied
2,648
2,479
169
7
Other owner occupied
10,962
10,707
255
2
Total commercial real estate
$
33,976
$
22,103
$
11,873
54
Construction and land
Multi-family residential
$
8,997
$
11,297
$
(2,300)
(20)
%
Health service facilities
7,649
8,626
(977)
(11)
Hospitality
-
2,716
(2,716)
(100)
Retail
-
6,077
(6,077)
(100)
Other commercial construction and land
1,782
1,791
(9)
(1)
Consumer residential construction and land
2,222
1,531
691
45
Total construction and land
$
20,650
$
32,038
$
(11,388)
(36)
Commercial and industrial
Oilfield services
$
8,081
$
8,474
$
(393)
(5)
%
Industrial equipment
8,453
8,285
168
2
Professional services
3,146
3,119
27
1
Other commercial and industrial
5,355
5,569
(214)
(4)
Total commercial and industrial loans
$
25,035
$
25,447
$
(412)
(2)
Credit Quality and Allowance for Credit Losses
At June 30, 2025, non-performing assets ("NPAs") totaled $1.8 million, compared to $1.7 million at March 31, 2025. The ratio of NPAs to total assets was 0.64% and 0.63% at June 30, 2025 and March 31, 2025, respectively. Non-performing loans ("NPLs") comprised 1.00% and 0.99% of total loans at June 30, 2025 and March 31, 2025, respectively. At June 30, 2025 and March 31, 2025, 99% and 98% of total NPLs, respectively, were one- to four-family residential mortgage loans.
At June 30, 2025, the allowance for credit losses on loans totaled $2.4 million, or 1.45% of total loans, compared to $2.5 million, or 1.51% of total loans, at March 31, 2025. The provision for credit losses was zero for the first and second quarters of 2025. Net loan charge-offs totaled $42,000 during the second quarter of 2025, compared to net charge-offs of $39,000 for the first quarter of 2025. Net loan charge-offs during the first and second quarters of 2025 were primarily related to residential mortgage loans and overdrawn deposit accounts.
Deposits
Total deposits were $182.2 million at June 30, 2025, up $1.6 million, or 1%, from March 31, 2025. Total deposits averaged $179.4 million during the second quarter of 2025, compared to $177.1 million during the first quarter of 2025. The change in deposits was mainly due to fluctuations in public funds and inflows from commercial customers. The following table sets forth the composition of the Company's deposits as of the dates indicated.
(Dollars in thousands)
6/30/2025
3/31/2025
Change
Non-interest-bearing demand deposits
$
31,155
$
26,093
$
5,062
19
%
Interest-bearing demand deposits
35,307
42,737
(7,430)
(17)
Money market
9,437
9,737
(300)
(3)
Savings
51,001
42,542
8,459
20
Certificates of deposit
55,311
59,489
(4,178)
(7)
Total deposits
$
182,211
$
180,598
$
1,613
1
The ratio of the Company's total loans to total deposits was 92% at both June 30 and March 31, 2025.
Total public fund deposits amounted to $29.0 million, or 16% of total deposits, at June 30, 2025, compared to $29.8 million, or 17% of total deposits, at March 31, 2025. At June 30, 2025, approximately 64% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits, compared to 80% at March 31, 2025. At June 30, 2025, a larger portion of public funds were held in savings accounts.
Capital and Share Repurchases
At June 30, 2025 and March 31, 2025, consolidated shareholders' equity totaled $80.8 million, or 29.5% of total assets, and $80.6 million, or 29.7% of total assets, respectively.
The Company repurchased 62,385 shares of its common stock at an average cost per share of $11.91 during the second quarter of 2025, compared to 72,949 shares at an average cost per share of $11.86 during the first quarter of 2025. Under the Company's November 2024 Repurchase Plan, 51,816 shares of the Company's common stock were available for repurchase at June 30, 2025. Since the announcement of our first share repurchase plan on January 26, 2023 and through June 30, 2025, the Company has repurchased a total of 1,147,184 shares of its common stock, or approximately 22% of the common shares originally issued, at an average cost per share of $11.92. At June 30, 2025, the Company had common shares outstanding of 4,142,816.
Net Interest Income
The net interest margin for the second quarter of 2025 was 3.98%, up nine basis points compared to the prior quarter. For the second quarter of 2025, the average yield on interest-earning assets was 5.58%, up four basis points from the prior quarter, and the average rate paid on interest-bearing liabilities was 2.51%, down five basis points from the first quarter of 2025.
Net interest income for the second quarter of 2025 was $2.5 million, up $103,000, or 4%, compared to the first quarter of 2025. Total interest income was up $87,000, or 3%, in the second quarter of 2025 compared to the prior quarter largely due to an increase in income on loans. Total interest expense decreased $16,000, or 2%, in the second quarter of 2025 compared to the prior quarter due to a decline in the cost of 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
6/30/2025
3/31/2025
(Dollars in thousands)
Average Balance
Interest
Average Yield/ Rate(TE)
Average Balance
Interest
Average Yield/ Rate(TE)
INTEREST-EARNING ASSETS
Loans receivable(1)
$
167,627
$
2,792
6.68
%
$
166,145
$
2,738
6.68
%
Investment securities(2)
48,285
294
2.49
46,960
275
2.35
Other interest earning assets
33,225
375
4.53
33,585
361
4.36
Total interest-earning assets
$
249,137
$
3,461
5.58
$
246,690
$
3,374
5.54
INTEREST-BEARING LIABILITIES
Demand deposits, money market, and savings accounts
$
92,088
$
466
2.03
%
$
94,133
$
483
2.08
%
Certificates of deposit
57,018
459
3.23
55,846
458
3.32
Total interest-bearing deposits
149,106
925
2.49
149,979
941
2.54
Borrowings
9,619
68
2.84
9,573
68
2.85
Total interest-bearing liabilities
$
158,725
$
993
2.51
$
159,552
$
1,009
2.56
Net interest-earning assets
$
90,412
$
87,138
Net interest income; average interest rate spread
$
2,468
3.07
%
$
2,365
2.98
%
Net interest margin(3)
3.98
3.89
(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 second quarter of 2025 totaled $344,000, down $209,000, or 38%, compared ...
