Catalyst Bancorp, Inc. Unveils Plans for New Share Buyback Initiative

Catalyst Bancorp, Inc. has officially launched its fifth share repurchase plan, reinforcing its commitment to enhancing shareholder value and supporting its strong financial performance. The company, which functions as the parent organization for Catalyst Bank, revealed this strategic move as part of its ongoing efforts to effectively manage its resources while focusing on growth.

The announcement was made on November 25, 2024, by the company’s President and CEO, Joe Zanco, who emphasized that it has been over three years since the company began its journey as a publicly listed entity. Catalyst Bancorp has worked tirelessly towards establishing itself as a robust community bank, and the repurchase plan is a significant step in that direction.

In Mr. Zanco's statement, he highlighted the bank’s ambitious mission to empower local businesses and consequently stimulate job creation within the communities it serves. This aligns with Catalyst Bancorp's recent rebranding initiative aimed at reaffirming its dedication to be a catalyst for business development in the local area.

In a bid to enhance operational capabilities, the bank has recently expanded its branch network, adding two new locations in Carencro and Lafayette, Louisiana. Despite increasing its branch count by 50%, the company has managed to maintain its employee count by focusing on efficiency improvements across its operations. This strategic approach has allowed it to upgrade its technological systems, resulting in a reduction of non-interest expenses by over $200,000 annually.

Additionally, the company has reported exceptional loan growth, achieving a record $21 million in the third quarter of 2024 alone, which indicates robust organic customer growth. Enhanced efficiencies are also resulting in improved core profitability. However, Mr. Zanco acknowledged that not everything has gone according to the original plan, particularly regarding potential acquisitions that were considered in the early days following the initial public offering (IPO). Despite the lack of suitable acquisitions, the bank remains well-positioned with adequate capital and management expertise to seize favorable opportunities in the future.

Under the newly announced November 2024 Repurchase Plan, the company may buy back up to 215,000 shares, representing approximately 5% of its outstanding common stock. Since the inception of the repurchase plans in January 2023, Catalyst Bancorp has successfully repurchased a total of 972,916 shares, which corresponds to approximately 18% of the original common shares issued, with an average purchase price set at $11.93 per share.

As Catalyst Bancorp approaches the new year, it remains firmly focused on delivering exceptional service to its clients, enhancing employee skills, and further boosting profitability and shareholder value. The collective efforts of the dedicated team are contributing to the company’s success since the IPO, and their commitment to continuous improvement is stronger than ever.

About Catalyst Bancorp, Inc.

Catalyst Bancorp, Inc. (Nasdaq: CLST) is a Louisiana-based bank holding company for Catalyst Bank, which has been serving the Acadiana region for over a century. With assets valued at approximately $280.6 million as of September 30, 2024, Catalyst Bank is dedicated to providing commercial and retail banking solutions through its six full-service branches across Louisiana. To discover more about Catalyst Bancorp and its services, visit Catalyst Bank’s website.