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Catalyst Bancorp, Inc. Reports Fourth Quarter Results for 2025

Catalyst Bancorp, Inc. (Nasdaq: CLST), the parent organization of Catalyst Bank, has recently published its financial results for the fourth quarter and the full year of 2025. This announcement underscores the bank's perseverance and commitment towards enhancing its services and operational efficiency.

Financial Performance Overview

For the fourth quarter ended December 31, 2025, Catalyst Bancorp recorded a net income of $456,000, equivalent to $0.13 per diluted share. This represents a slight decrease from the net income of $489,000, or $0.13 per diluted share, achieved in the previous quarter. For the entirety of 2025, the company’s net income totaled $2.1 million, or $0.56 per diluted share, in stark contrast to a net loss of $3.1 million for 2024.

Joe Zanco, the President and CEO of Catalyst Bancorp, stated, "Loan growth was strong during the quarter. We're also pleased to see our net interest margin widen as funding costs declined." This sentiment reflects the broad optimism within the organization regarding its financial trajectory moving forward.

Loan Growth and Composition

The loan portfolio reached $170.2 million by December 31, 2025, marking an increase of $5.4 million, or 3%, from the previous quarter. Notably, the real estate sector remains robust, with total real estate loans rising to $137.1 million. The breakdown includes:

• - One-to-four family residential loans at $80.1 million, up 2% from the prior quarter.
• - Commercial real estate loans decreased slightly to $32.9 million.
• - Other categories, like commercial and industrial loans, surged by 22%, reflecting a healthy demand in the oilfield services sector.

This growth in loans indicates an encouraging trend of increasing business activity in the region, with various sectors benefiting from Catalyst’s financial solutions.

Non-Performing Assets and Credit Quality

Despite positive growth in loans, Catalyst Bancorp did experience a rise in non-performing assets (NPAs), totaling $2.7 million at the end of December, compared to $1.9 million in September. This rise was primarily driven by an increase in non-accruing one- to four-family residential mortgage loans. The ratio of NPAs to total assets was 0.95%, up from 0.67% in the prior quarter.

The total allowance for credit losses on loans remained stable at $2.4 million, representing approximately 1.39% of total loans. The company is monitoring its credit quality closely to address potential challenges proactively.

Deposits and Capital Management

Regarding deposits, Catalyst Bancorp reported a total of $185.3 million by the end of the fourth quarter, a minor decline of $1.1 million, or 1%, from the previous quarter. The management noted a particular increase in non-interest-bearing demand deposits, rising 9%. However, overall deposits averaged $181.5 million during Q4.

In terms of capital management, Catalyst Bancorp continued its share repurchase program, purchasing 54,693 shares at an average of $14.76 per share during the fourth quarter, alongside announcing a new repurchase plan allowing for further share buybacks.

Looking Ahead

As Catalyst Bancorp embarks on 2026, the foundation built in 2025 poses well for future growth. The bank’s strategies in enhancing operational efficiencies while providing robust lending options seem to bear fruit. The ongoing focus on expanding its loan portfolio and controlling credit quality are crucial as the bank navigates the financial landscape ahead. The management’s forward-looking statements reflect a commitment to leveraging its growth trajectory while staying attuned to market opportunities and challenges.

Conclusion

Catalyst Bancorp, Inc. has shown resilience and operational improvement through notable loan growth and returning to profitability for the year 2025. As the company ventures into 2026, it remains focused on enhancing customer service and supporting economic growth within its operating communities.

For more information, you can visit Catalyst Bank's website.