CLST Overview

Share Repurchase Plan Announcement: Catalyst Bancorp, Inc. has approved its sixth share repurchase plan, allowing the purchase of up to 205,000 shares, which is about 5% of its outstanding common stock.

Previous Repurchases: Since January 2023, the company has repurchased a total of 1,180,817 shares, representing approximately 22% of the originally issued common shares, at an average cost of $11.97 per share.

Company Overview: Catalyst Bancorp, Inc. is a Louisiana-based bank holding company with $283.8 million in assets as of September 30, 2025, operating Catalyst Bank, which has been serving the Acadiana region since 1922.

Forward-Looking Statements: The announcement includes forward-looking statements regarding the company's financial performance and operations, which are subject to various risks and uncertainties that may affect actual results.

Financial Performance: Catalyst Bancorp reported a net income of $489,000 for Q3 2025, a slight decrease from $521,000 in Q2 2025, with total loans decreasing by 2% to $164.8 million.

Loan Portfolio Composition: The company's loan portfolio saw a decline in real estate loans, particularly in one-to-four-family residential and construction loans, while commercial and industrial loans experienced a slight increase.

Deposit Growth: Total deposits rose by 2% to $186.4 million, attributed to successful high-yield account promotions that attracted new customers and deepened existing relationships.

Credit Quality and Expenses: Non-performing assets increased to $1.9 million, with a slight rise in the ratio of non-performing loans to total loans, while non-interest expenses rose by 1% to $2.2 million, primarily due to increased salaries and employee benefits.

Financial Performance: Catalyst Bancorp reported a net income of $521,000 in Q2 2025, an 11% decrease from the previous quarter, while earnings per share increased to $0.14. The efficiency ratio worsened to 77.46%, indicating challenges in cost control despite stable asset quality and modest growth in loans and deposits.

Loan Portfolio Diversification: The bank significantly diversified its loan portfolio, with commercial real estate loans increasing by 54% and multi-family residential loans more than doubling. However, overall loan growth remained modest at 1%, primarily due to re-categorization of existing loans rather than organic growth.