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Catalyst Bancorp, Inc. Reports First Quarter Earnings for 2025

On April 24, 2025, Catalyst Bancorp, Inc. (Nasdaq: CLST), the parent organization of Catalyst Bank, announced its financial performance for the first quarter of 2025. The institution reported a net income of $586,000, which represents a slight decrease from the $626,000 recorded in the prior quarter of 2024.

Financial Performance Overview

Despite the modest decline in earnings, Catalyst Bank's President and CEO, Joe Zanco, expressed optimism about the bank's operations. He noted that loan growth was subdued at the start of the year as market volatility prompted clients to postpone various projects. Nevertheless, Zanco highlighted a notable achievement as the Bank was recognized at the ICBA’s Live Conference held in Nashville, earning the ‘Best Community Banks to Work For’ award in March 2025. This accolade reflects the commitment of the bank's employees to its core values, including truth, humility, impact, and connection.

Breakdown of Loan Portfolio

As of March 31, 2025, Catalyst Bank reported total loans amounting to $166.1 million, down by less than one percent from the end of the previous quarter.
Here’s a brief overview of the composition of the bank's loans:

• - Real Estate Loans: Totaling $138.7 million, with $82 million in one-to-four-family residential loans, marking an increase.
• - Commercial Real Estate Loans: Slightly stable at $22.1 million.
• - Construction and Land Loans: Clocking in at $32 million, reflecting a decrease of 3%.
• - Commercial and Industrial Loans: Registered at $25.4 million, down 4%.

Changes in Deposit Levels

Total deposits reached $180.6 million by March 31, 2025, representing a decrease of $5.1 million or 3% compared to the last quarter. The average total deposits over the first quarter stood at $177.1 million, aligning with systemic fluctuations primarily attributed to public fund deposits. Interestingly, the proportion of total loans to total deposits improved to 92% as of the end of March 2025 versus 90% at the prior quarter's end.

Credit Quality and Asset Management

The bank's non-performing assets (NPAs) also saw a reduction, totaling $1.7 million at the end of the first quarter, lower than the $1.8 million recorded in December 2024. This improvement was largely driven by a decrease in foreclosed assets. The ratio of NPAs to total assets declined slightly to 0.63%. The bank maintained an allowance for credit losses stable at $2.5 million, reflecting a conservative approach to managing potential loan losses.

Expenses and Earnings Outlook

Non-interest income surged to $553,000, bolstered by insurance recoveries from damaged foreclosed properties. However, non-interest expenses also rose to $2.2 million, representing an 8% increase over the previous quarter, primarily due to expenses linked to foreclosed assets and rising salaries.

Looking forward, Catalyst Bancorp remains cautiously optimistic amid evolving market conditions and is focused on enhancing operational effectiveness. Having repurchased 72,949 shares in the first quarter of 2025 under its share repurchase plan, the company continues to demonstrate its commitment to shareholder value while navigating a competitive banking environment.

For more information about Catalyst Bancorp and its operations, please visit Catalyst Bank.

Conclusion

As Catalyst Bancorp reflects on its first-quarter results, the organization remains committed to serving its community and adapting to market challenges. With ongoing employee dedication and strategic planning, Catalyst aims to continue its trajectory toward sustainable growth in the upcoming quarters.

About Catalyst Bancorp, Inc.

Catalyst Bancorp, Inc. is a Louisiana-based bank holding company, guiding Catalyst Bank, its sole bank subsidiary, which focuses on commercial and retail banking services across various locations including Carencro, Eunice, Lafayette, Opelousas, and Port Barre. Established over a century ago, Catalyst Bank aspires to foster economic growth in Louisiana while building lasting relationships with its clients.