UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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ITEM 2.02 Results of Operations and Financial Condition
On January 25, 2024, the Company announced its quarterly and annual results for the periods ended December 31, 2023. A copy of the related press release (the "Press Release") is attached as Exhibit 99.1 to this Current Report on Form 8-K. The Press Release attached hereto, which is incorporated herein by reference, is being furnished to the SEC and shall not be deemed "filed" for any purpose except as otherwise provided herein.
ITEM 9.01 Financial Statements and Exhibits
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) Exhibits
The following exhibits are included herein:
Exhibit Number | Description | |
104 | Cover Page Interactive Data File. Embedded within the Inline XBRL document. |
2
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CATALYST BANCORP, INC. | ||||
Date: | January 25, 2024 | By: | /s/ Joseph B. Zanco | |
Joseph B. Zanco | ||||
President and Chief Executive Officer | ||||
3
Exhibit 99.1
For more information:
Joe Zanco, President and CEO
(337) 948-3033
For Immediate Release
Release Date: January 25, 2024
Catalyst Bancorp, Inc. Announces 2023 Fourth Quarter Results
Opelousas, Louisiana – Catalyst Bancorp, Inc. (Nasdaq: “CLST”) (the “Company”), the parent company for Catalyst Bank (the “Bank”) (www.catalystbank.com), reported net income of $320,000 for the fourth quarter of 2023 which included a net pre-tax benefit of $371,000 due to a Bank Enterprise Award (“BEA”) Program grant from the Community Development Financial Institution (“CDFI”) Fund and a $92,000 loss on the sale of investment securities. For the year ended December 31, 2023, net income totaled $602,000, compared to $180,000 for 2022.
“We produced over $9 million of loan growth during the fourth quarter – our strongest quarter since becoming a public company,” said Joe Zanco, President and Chief Executive Officer of the Company and the Bank. “This growth was fueled by the high level of responsiveness our bankers provide to our customers.”
Loans
Loans totaled $144.9 million at December 31, 2023, up $9.2 million, or 7%, from September 30, 2023. The increase in total loans during the fourth quarter of 2023 was primarily due to commercial construction and commercial real estate loans. Construction loan growth was largely driven by three separate projects involving the purchase and renovation of a hotel, the construction of a retail health care center, and the purchase and renovation of an industrial warehouse. A significant driver of commercial real estate loan growth was a loan to finance the purchase of a multi-tenant office building in Lafayette, Louisiana.
The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated.
(Dollars in thousands) | | 12/31/2023 | | 9/30/2023 | | Increase (Decrease) | ||||||
Real estate loans | | | | | | | | | | | | |
One- to four-family residential | | $ | 83,623 | | $ | 83,973 | | $ | (350) | | - | % |
Commercial real estate | | | 21,478 | | | 19,113 | | | 2,365 | | 12 | |
Construction and land | | | 13,857 | | | 6,622 | | | 7,235 | | 109 | |
Multi-family residential | | | 3,373 | | | 3,424 | | | (51) | | (1) | |
Total real estate loans | | | 122,331 | | | 113,132 | | | 9,199 | | 8 | |
Other loans | | | | | | | | | | | | |
Commercial and industrial | | | 19,984 | | | 19,634 | | | 350 | | 2 | |
Consumer | | | 2,605 | | | 2,906 | | | (301) | | (10) | |
Total other loans | | | 22,589 | | | 22,540 | | | 49 | | - | |
Total loans | | $ | 144,920 | | $ | 135,672 | | $ | 9,248 | | 7 | % |
1
Loans secured by one- to four-family residential properties accounted for 58% of total loans and commercial real estate loans accounted for 15% of total loans at December 31, 2023. Approximately 60% of our real estate loans have adjustable rates and, of our total real estate loans, approximately $60.7 million, or 50%, are scheduled to re-price or mature during the next 12 months.
Our non-real estate loans primarily consist of commercial and industrial loans, which amounted to 14% of total loans at December 31, 2023. This segment of the portfolio largely consists of loans to local businesses involved in industrial manufacturing and equipment, communications, professional services, and oil and gas support services. Approximately 39% of our commercial and industrial loans have adjustable rates and, of total commercial and industrial loans, approximately $10.2 million, or 51%, are scheduled to re-price or mature during the next 12 months.
Credit Quality and Allowance for Credit Losses
At each of December 31 and September 30, 2023, non-performing assets (“NPAs”) totaled $2.1 million and the ratio of NPAs to total assets was 0.76% and 0.82% at such dates, respectively. Non-performing loans (“NPLs”) comprised 1.37% of total loans at December 31, 2023, and 1.54% of total loans at September 30, 2023. At December 31 and September 30, 2023, 95% and 96% of total NPLs, respectively, were one- to four-family residential mortgage loans.
At December 31, 2023, the allowance for loan losses totaled $2.1 million, or 1.47% of total loans, compared to $2.0 million at September 30, 2023, or 1.50% of total loans. For the quarter and year ended December 31, 2023, the provision for credit losses totaled $128,000, which was largely attributable to loan growth in the fourth quarter of 2023 that necessitated additional loan provisions according to the Bank’s Current Expected Credit Losses model.
Net loan charge-offs totaled $63,000 during the fourth quarter of 2023, compared to net recoveries of $17,000 for the third quarter of 2023. Net loan charge-offs in the fourth quarter of 2023 were primarily attributable to one- to four-family residential loans.
2
Investment Securities
Total investment securities were $84.0 million, or 31% of total assets, at December 31, 2023. The Company’s investment securities portfolio consists primarily of government-sponsored mortgage-backed securities and debt obligations issued by the U.S. government and government agencies. The Company has not purchased investment securities since the fourth quarter of 2022. During the fourth quarter of 2023, the Company sold two available-for-sale investment securities for a pre-tax loss of $92,000. Cash proceeds from the sales totaled $1.9 million.
At December 31, 2023, 86% of total investment securities, based on amortized cost, were classified as available-for-sale. Net unrealized losses on securities classified as available-for-sale totaled $9.2 million at December 31, 2023, compared to $12.8 million at September 30, 2023.
The following table summarizes the amortized cost and fair value of our investment securities portfolio as of December 31, 2023.
|
| December 31, 2023 | ||||||||||
(Dollars in thousands) | | Amortized Cost |
| Gross Unrealized Gains |
| Gross Unrealized Losses |
| Fair Value | ||||
Securities available-for-sale | |
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| |
Mortgage-backed securities | | $ | 65,704 | | $ | 14 | | $ | (8,206) | | $ | 57,512 |
U.S. Government and agency obligations | |
| 7,999 | |
| - | |
| (611) | |
| 7,388 |
Municipal obligations | |
| 5,998 | |
| 7 | |
| (365) | |
| 5,640 |
Total available-for-sale | | $ | 79,701 | | $ | 21 | | $ | (9,182) | | $ | 70,540 |
Securities held-to-maturity |
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U.S. Government and agency obligations | | $ | 13,003 | | $ | - | | $ | (2,210) | | $ | 10,793 |
Municipal obligations | |
| 458 | |
| - | |
| (24) | |
| 434 |
Total held-to-maturity | | $ | 13,461 | | $ | - | | $ | (2,234) | | $ | 11,227 |
At December 31, 2023, the amortized cost and fair value of pledged investment securities totaled $61.9 million and $53.9 million, respectively. The amortized cost and fair value of investment securities pledged to secure uninsured public fund deposits totaled $49.3 million and $43.2 million, respectively, at December 31, 2023. The remainder of the pledged investment securities at December 31, 2023 served as collateral for borrowings from the Federal Reserve Bank of Atlanta.
3
Deposits
Total deposits were $165.6 million at December 31, 2023, up $402,000, or less than 1%, from September 30, 2023. A $3.2 million decline in total public funds over the fourth quarter was offset by growth in consumer and commercial deposits that was largely driven by rate specials offered to depositors during the quarter.
The following table sets forth the composition of the Bank’s deposits as of the dates indicated.
(Dollars in thousands) | | 12/31/2023 | | 9/30/2023 | | Increase (Decrease) | ||||||
Non-interest-bearing demand deposits | | $ | 28,183 | | $ | 33,222 | | $ | (5,039) | | (15) | % |
Interest-bearing demand deposits | | | 36,867 | | | 38,881 | | | (2,014) | | (5) | |
Money market | | | 15,126 | | | 15,473 | | | (347) | | (2) | |
Savings | | | 31,518 | | | 27,237 | | | 4,281 | | 16 | |
Certificates of deposit | | | 53,928 | | | 50,407 | | | 3,521 | | 7 | |
Total deposits | | $ | 165,622 | | $ | 165,220 | | $ | 402 | | - | % |
At December 31, 2023, approximately 78% of our total public funds consisted of non-interest-bearing and interest-bearing demand deposits from municipalities within our market. Total public fund deposits amounted to $23.3 million, or 14% of total deposits, at December 31, 2023, compared to $26.4 million, or 16% of total deposits, at September 30, 2023.
Our total uninsured deposits (that is deposits in excess of the FDIC’s insurance limit), inclusive of public funds, were approximately $44.6 million at December 31, 2023 and $45.2 million at September 30, 2023. Total uninsured non-public funds deposits were approximately $26.3 million and $23.9 million at December 31 and September 30, 2023, respectively. The full amount of our public fund deposits in excess of the FDIC’s insurance limit are secured by pledging investment securities.
Borrowings and Liquidity
Total borrowings at December 31, 2023 were $19.4 million, up $10.0 million from September 30, 2023. During the fourth quarter of 2023, the Bank began borrowing from the Federal Reserve Bank of Atlanta through its Bank Term Funding Program (“BTFP”). At December 31, 2023, the Bank had one $10.0 million BTFP loan outstanding with a contractual interest rate of 4.83% and a maturity date of December 24, 2024.
The ratio of the Company’s total loans to total deposits was 88% and 82% as of December 31 and September 30, 2023, respectively. The table below summarizes our unused and available liquidity sources as of December 31, 2023.
(Dollars in thousands) | | 12/31/2023 | |
Advances from the Federal Home Loan Bank of Dallas | | $ | 48,467 |
Line of credit with primary correspondent bank | | | 17,800 |
Federal Reserve's Bank Term Funding Program | | | 1,434 |
Federal Reserve Discount Window | | | 718 |
Unpledged available-for-sale investment securities, at fair value | | | 25,385 |
Total unused and available liquidity | | $ | 93,804 |
Pledged securities under the BTFP are valued at par when determining borrowing capacity. The total par value of unpledged investment securities eligible as collateral for advances under the BTFP was $16.5 million at December 31, 2023.
4
Capital and Share Repurchases
The Bank’s total risk-based capital ratio was 53.60% and 56.23% at December 31, 2023 and September 30, 2023, respectively. At December 31, 2023 and September 30, 2023, consolidated shareholders’ equity totaled $84.6 million, or 31.2% of total assets, and $82.2 million, or 31.9% of total assets, respectively.
The Company repurchased 86,964 shares of its common stock at an average cost per share of $11.24 during the fourth quarter of 2023. During the year ended December 31, 2023, the Company repurchased 528,674 shares of its common stock at an average cost per share of $11.94 through the completion of repurchases of 265,000 shares under its January 2023 Repurchase Plan and 252,000 under its April 2023 Repurchase Plan, and the repurchase of another 11,674 shares pursuant to a third repurchase plan announced in November (the “November 2023 Repurchase Plan”). At December 31, 2023, the Company had common shares outstanding of 4,761,326 and 228,326 of those shares were available for repurchase under the November 2023 Repurchase Plan.
Net Interest Income
The net interest margin for the fourth quarter of 2023 was 3.14%, up one basis point compared to the prior quarter. For the fourth quarter of 2023, the average yield on interest-earning assets was 4.17%, up 26 basis points from the prior quarter, while the average rate paid on interest-bearing liabilities was 1.73%, up 35 basis points from the third quarter of 2023.
Net interest income for the fourth quarter of 2023 was $2.0 million, down $12,000, or 1%, compared to the third quarter of 2023. Total interest income was up $134,000, or 5%, while total interest expense increased by $146,000, or 29%, in the fourth quarter of 2023 compared to the prior quarter.
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 | ||||||||||||||||
| | 12/31/2023 | | 9/30/2023 | ||||||||||||||
(Dollars in thousands) | | Average Balance |
| Interest | | Average Yield/ Rate |
| Average Balance |
| Interest | | Average Yield/ Rate | ||||||
INTEREST-EARNING ASSETS | |
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Loans receivable(1) | | $ | 140,757 | | $ | 2,066 | | 5.82 | % | | $ | 134,851 | | $ | 1,852 | | 5.45 | % |
Investment securities(TE)(2) | | | 96,640 | | | 400 | | 1.67 | | | | 99,373 | | | 403 | | 1.64 | |
Other interest earning assets | | | 11,276 | | | 137 | | 4.83 | | | | 16,915 | | | 214 | | 5.02 | |
Total interest-earning assets(TE) | | $ | 248,673 | | $ | 2,603 | | 4.17 | % | | $ | 251,139 | | $ | 2,469 | | 3.91 | % |
INTEREST-BEARING LIABILITIES | | |
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| | | | | |
| | |
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| |
Demand deposits, money market, and savings accounts | | $ | 82,474 | | $ | 185 | | 0.89 | % | | $ | 83,051 | | $ | 154 | | 0.73 | % |
Certificates of deposit | | | 51,707 | | | 344 | | 2.64 | | | | 50,526 | | | 274 | | 2.15 | |
Total interest-bearing deposits | | | 134,181 | | | 529 | | 1.56 | | | | 133,577 | | | 428 | | 1.27 | |
Borrowings | | | 13,016 | | | 114 | | 3.50 | | | | 9,306 | | | 69 | | 2.93 | |
Total interest-bearing liabilities | | $ | 147,197 | | $ | 643 | | 1.73 | % | | $ | 142,883 | | $ | 497 | | 1.38 | % |
Net interest-earning assets | | $ | 101,476 | | | | | | | | $ | 108,256 | | | | | | |
Net interest income; average interest rate spread(TE) | | | | | $ | 1,960 | | 2.44 | % | | | | | $ | 1,972 | | 2.53 | % |
Net interest margin(TE)(3) | | | | | | | | 3.14 | % | | | | | | | | 3.13 | % |
| (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%. |
5
Non-interest Income
Non-interest income for the fourth quarter of 2023 was $672,000, up $366,000, or a 120% increase from the third quarter of 2023. The Company received and recognized as income a $437,000 Bank Enterprise Award (“BEA”) Program grant from the CDFI Fund during the fourth quarter of 2023. Non-interest income for the fourth quarter of 2023 also included the $92,000 loss on the sale of investment securities discussed previously. The securities were sold for a total of $1.9 million.
Non-interest Expense
Non-interest expense for the fourth quarter of 2023 totaled $2.1 million, up $41,000, or 2%, compared to the third quarter of 2023. Professional fees totaled $140,000 for the fourth quarter of 2023, up $40,000, or 40%, from the prior quarter. Professional fees associated with obtaining the BEA Program grant totaled $66,000 and were expensed in the fourth quarter of 2023.
During the first quarter of 2024, the Company is converting to a new core processing system and expects to incur approximately $500,000 (pre-tax) of data conversion and other associated costs. The core system conversion will significantly enhance our customer-facing and internal banking technology. The Company also estimates annualized savings of greater than $200,000 after completing the conversion.
About Catalyst Bancorp, Inc.
Catalyst Bancorp, Inc. (Nasdaq: CLST) is a Louisiana corporation and registered bank holding company for Catalyst Bank, its wholly-owned subsidiary, with $270.9 million in assets at December 31, 2023. Catalyst Bank, formerly St. Landry Homestead Federal Savings Bank, has been in operation in the Acadiana region of south-central Louisiana for over 100 years. With a focus on fueling business and improving lives throughout the region, Catalyst Bank offers commercial and retail banking products through our six full-service branches located in Carencro, Eunice, Lafayette, Opelousas, and Port Barre. To learn more about Catalyst Bancorp and Catalyst Bank, visit www.catalystbank.com, or the website of the Securities and Exchange Commission, www.sec.gov.
6
Forward-looking Statements
This news release reflects industry conditions, Company performance and financial results and contains “forward-looking statements,’ which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. These forward-looking statements are subject to a number of risk factors and uncertainties which could cause the Company’s actual results and experience to differ materially from the anticipated results and expectation expressed in such forward-looking statements.
Factors that could cause our actual results to differ materially from our forward-looking statements are described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Supervision and Regulation” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC’s website and the Company’s website, each of which are referenced above. To the extent that statements in this news release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology.
Forward-looking statements represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. All information is as of the date of this news release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
7
CATALYST BANCORP, INC. AND SUBSIDIARY | |||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||
| | | | | | | | | |
| | (Unaudited) | | (Unaudited) | | | | ||
(Dollars in thousands) |
| 12/31/2023 |
| 9/30/2023 |
| 12/31/2022 | |||
ASSETS |
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Non-interest-bearing cash | | $ | 3,654 | | $ | 3,497 | | $ | 5,092 |
Interest-bearing cash and due from banks | | | 15,357 | | | 9,769 | | | 8,380 |
Total cash and cash equivalents | | | 19,011 | | | 13,266 | | | 13,472 |
Investment securities: | | |
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Securities available-for-sale, at fair value | | | 70,540 | | | 71,808 | | | 79,602 |
Securities held-to-maturity | | | 13,461 | | | 13,464 | | | 13,475 |
Loans receivable, net of unearned income | | | 144,920 | | | 135,672 | | | 133,607 |
Allowance for loan losses | | | (2,124) | | | (2,036) | | | (1,807) |
Loans receivable, net | | | 142,796 | | | 133,636 | | | 131,800 |
Accrued interest receivable | | | 906 | | | 806 | | | 673 |
Foreclosed assets | | | 60 | | | 37 | | | 320 |
Premises and equipment, net | | | 6,072 | | | 6,160 | | | 6,303 |
Stock in correspondent banks, at cost | | | 1,878 | | | 1,858 | | | 1,808 |
Bank-owned life insurance | | | 14,026 | | | 13,917 | | | 13,617 |
Other assets | | | 2,141 | | | 2,956 | | | 2,254 |
TOTAL ASSETS | | $ | 270,891 | | $ | 257,908 | | $ | 263,324 |
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LIABILITIES | | |
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Deposits: | | |
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Non-interest-bearing | | $ | 28,183 | | $ | 33,222 | | $ | 33,657 |
Interest-bearing | | | 137,439 | | | 131,998 | | | 131,437 |
Total deposits | | | 165,622 | | | 165,220 | | | 165,094 |
Borrowings | | | 19,378 | | | 9,333 | | | 9,198 |
Other liabilities | | | 1,274 | | | 1,147 | | | 558 |
TOTAL LIABILITIES | | | 186,274 | | | 175,700 | | | 174,850 |
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SHAREHOLDERS' EQUITY | | |
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Common stock | | | 48 | | | 48 | | | 53 |
Additional paid-in capital | | | 45,020 | | | 45,855 | | | 51,062 |
Unallocated common stock held by benefit plans | | | (6,221) | | | (6,274) | | | (6,307) |
Retained earnings | | | 53,007 | | | 52,687 | | | 52,740 |
Accumulated other comprehensive income (loss) | | | (7,237) | | | (10,108) | | | (9,074) |
TOTAL SHAREHOLDERS' EQUITY | | | 84,617 | | | 82,208 | | | 88,474 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | | $ | 270,891 | | $ | 257,908 | | $ | 263,324 |
8
CATALYST BANCORP, INC. AND SUBSIDIARY | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Unaudited) | |||||||||||||||
| | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended | |||||||||||
(Dollars in thousands) | | 12/31/2023 |
| 9/30/2023 |
| 12/31/2022 |
| 12/31/2023 |
| 12/31/2022 | |||||
INTEREST INCOME | |
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Loans receivable, including fees | | $ | 2,066 | | $ | 1,852 | | $ | 1,543 | | $ | 7,238 | | $ | 6,127 |
Investment securities | | | 400 | | | 403 | | | 418 | | | 1,643 | | | 1,480 |
Other | | | 137 | | | 214 | | | 145 | | | 780 | | | 407 |
Total interest income | | | 2,603 | | | 2,469 | | | 2,106 | | | 9,661 | | | 8,014 |
INTEREST EXPENSE | | |
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Deposits | | | 529 | | | 428 | | | 130 | | | 1,541 | | | 402 |
Borrowings | | | 114 | | | 69 | | | 76 | | | 319 | | | 281 |
Total interest expense | | | 643 | | | 497 | | | 206 | | | 1,860 | | | 683 |
Net interest income | | | 1,960 | | | 1,972 | | | 1,900 | | | 7,801 | | | 7,331 |
Provision for (reversal of) credit losses | | | 128 | | | - | | | - | | | 128 | | | (375) |
Net interest income after provision for (reversal of) credit losses | | | 1,832 | | | 1,972 | | | 1,900 | | | 7,673 | | | 7,706 |
NON-INTEREST INCOME | | |
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Service charges on deposit accounts | | | 201 | | | 190 | | | 189 | | | 774 | | | 731 |
Bank-owned life insurance | | | 109 | | | 104 | | | 98 | | | 409 | | | 314 |
Gain (loss) on sales of investment securities | | | (92) | | | - | | | - | | | (92) | | | - |
Gain (loss) on disposals and sales of fixed assets | | | - | | | - | | | - | | | - | | | (77) |
Federal community development grant | | | 437 | | | - | | | - | | | 437 | | | 171 |
Other | | | 17 | | | 12 | | | 14 | | | 61 | | | 34 |
Total non-interest income | | | 672 | | | 306 | | | 301 | | | 1,589 | | | 1,173 |
NON-INTEREST EXPENSE | | |
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Salaries and employee benefits | | | 1,149 | | | 1,141 | | | 1,175 | | | 4,671 | | | 4,822 |
Occupancy and equipment | | | 193 | | | 198 | | | 193 | | | 802 | | | 833 |
Data processing and communication | | | 236 | | | 228 | | | 175 | | | 911 | | | 841 |
Professional fees | | | 140 | | | 100 | | | 66 | | | 486 | | | 538 |
Directors’ fees | | | 118 | | | 116 | | | 117 | | | 463 | | | 302 |
ATM and debit card | | | 63 | | | 68 | | | 61 | | | 250 | | | 245 |
Foreclosed assets, net | | | 5 | | | 2 | | | 5 | | | 72 | | | 5 |
Advertising and marketing | | | 23 | | | 25 | | | 53 | | | 100 | | | 240 |
Franchise and shares tax | | | 10 | | | 19 | | | (16) | | | 81 | | | 115 |
Other | | | 185 | | | 184 | | | 173 | | | 743 | | | 779 |
Total non-interest expense | | | 2,122 | | | 2,081 | | | 2,002 | | | 8,579 | | | 8,720 |
Income before income tax expense (benefit) | | | 382 | | | 197 | | | 199 | | | 683 | | | 159 |
Income tax expense (benefit) | | | 62 | | | 27 | | | 28 | | | 81 | | | (21) |
NET INCOME | | $ | 320 | | $ | 170 | | $ | 171 | | $ | 602 | | $ | 180 |
| | | | | | | | | | | | | | | |
Earnings per share: | | | | | | | | | | | | | | | |
Basic | | $ | 0.08 | | $ | 0.03 | | $ | 0.03 | | $ | 0.14 | | $ | 0.04 |
Diluted | | | 0.08 | | | 0.03 | | | 0.03 | | | 0.14 | | | 0.04 |
9
CATALYST BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||||
SELECTED FINANCIAL DATA | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended | ||||||||||||||||
(Dollars in thousands) | | 12/31/2023 |
| 9/30/2023 |
| 12/31/2022 | | 12/31/2023 |
| 12/31/2022 | ||||||||||
EARNINGS DATA | | | | | | | | | | | | | | | | | | | | |
Total interest income | | $ | 2,603 | | | $ | 2,469 | | | $ | 2,106 | | | $ | 9,661 | | | $ | 8,014 | |
Total interest expense | | | 643 | | | | 497 | | | | 206 | | | | 1,860 | | | | 683 | |
Net interest income | | | 1,960 | | | | 1,972 | | | | 1,900 | | | | 7,801 | | | | 7,331 | |
Provision for (reversal of) credit losses | | | 128 | | | | - | | | | - | | | | 128 | | | | (375) | |
Total non-interest income | | | 672 | | | | 306 | | | | 301 | | | | 1,589 | | | | 1,173 | |
Total non-interest expense | | | 2,122 | | | | 2,081 | | | | 2,002 | | | | 8,579 | | | | 8,720 | |
Income tax expense (benefit) | | | 62 | | | | 27 | | | | 28 | | | | 81 | | | | (21) | |
Net income | | $ | 320 | | | $ | 170 | | | $ | 171 | | | $ | 602 | | | $ | 180 | |
| | | | | | | | | | | | | | | | | | | | |
AVERAGE BALANCE SHEET DATA | | | | | | | | | | | | | | | | | | | | |
Total loans | | $ | 140,757 | | | $ | 134,851 | | | $ | 133,102 | | | $ | 135,713 | | | $ | 132,503 | |
Total interest-earning assets | | | 248,673 | | | | 251,139 | | | | 256,033 | | | | 252,616 | | | | 267,300 | |
Total assets | | | 261,657 | | | | 265,057 | | | | 270,121 | | | | 266,655 | | | | 282,931 | |
Total interest-bearing deposits | | | 134,181 | | | | 133,577 | | | | 139,134 | | | | 136,321 | | | | 147,266 | |
Total interest-bearing liabilities | | | 147,197 | | | | 142,883 | | | | 149,064 | | | | 146,529 | | | | 156,560 | |
Total deposits | | | 165,102 | | | | 170,589 | | | | 170,952 | | | | 170,677 | | | | 179,826 | |
Total shareholders' equity | | | 82,227 | | | | 84,021 | | | | 88,558 | | | | 84,739 | | | | 93,074 | |
| | | | | | | | | | | | | | | | | | | | |
SELECTED RATIOS | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | 0.49 | % | | | 0.25 | % | | | 0.25 | % | | | 0.23 | % | | | 0.06 | % |
Return on average equity | | | 1.54 | | | | 0.80 | | | | 0.76 | | | | 0.71 | | | | 0.19 | |
Efficiency ratio | | | 80.61 | | | | 91.34 | | | | 90.99 | | | | 91.36 | | | | 102.55 | |
Net interest margin(TE) | | | 3.14 | | | | 3.13 | | | | 2.96 | | | | 3.10 | | | | 2.75 | |
Average equity to average assets | | | 31.43 | | | | 31.70 | | | | 32.78 | | | | 31.78 | | | | 32.90 | |
Common equity Tier 1 capital ratio(1) | | | 52.34 | | | | 54.97 | | | | 56.17 | | | | | | | | | |
Tier 1 leverage capital ratio(1) | | | 31.67 | | | | 31.08 | | | | 30.37 | | | | | | | | | |
Total risk-based capital ratio(1) | | | 53.60 | | | | 56.23 | | | | 57.42 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
NON-FINANCIAL DATA | | | | | | | | | | | | | | | | | | | | |
Total employees (full-time equivalent) | | | 48 | | | | 47 | | | | 50 | | | | | | | | | |
Common shares issued and outstanding, end of period | | | 4,761,326 | | | | 4,848,290 | | | | 5,290,000 | | | | | | | | | |
| (1) | Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change. |
10
CATALYST BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||||
SELECTED FINANCIAL DATA | ||||||||||||||||||||
(continued) | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended | ||||||||||||||||
(Dollars in thousands) | | 12/31/2023 |
| 9/30/2023 |
| 12/31/2022 | | 12/31/2023 |
| 12/31/2022 | ||||||||||
ALLOWANCE FOR CREDIT LOSSES | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 2,036 | | | $ | 2,081 | | | $ | 1,804 | | | $ | 1,807 | | | $ | 2,276 | |
CECL adoption impact | | | - | | | | - | | | | - | | | | 209 | | | | - | |
Provision for (reversal of) loan losses | | | 151 | | | | (62) | | | | - | | | | 87 | | | | (375) | |
Charge-offs | | | (76) | | | | (9) | | | | (19) | | | | (102) | | | | (210) | |
Recoveries | | | 13 | | | | 26 | | | | 22 | | | | 123 | | | | 116 | |
Net (charge-offs) recoveries | | | (63) | | | | 17 | | | | 3 | | | | 21 | | | | (94) | |
Ending balance | | $ | 2,124 | | | $ | 2,036 | | | $ | 1,807 | | | $ | 2,124 | | | $ | 1,807 | |
| | | | | | | | | | | | | | | | | | | | |
Allowance for unfunded commitments: | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | 280 | | | | 218 | | | | - | | | | - | | | | - | |
CECL adoption impact | | | - | | | | - | | | | - | | | | 216 | | | | - | |
Provision for losses on unfunded commitments | | | (23) | | | | 62 | | | | - | | | | 41 | | | | - | |
Ending balance | | $ | 257 | | | $ | 280 | | | $ | - | | | $ | 257 | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | |
Total allowance for credit losses, end of period | | $ | 2,381 | | | $ | 2,316 | | | $ | 1,807 | | | $ | 2,381 | | | $ | 1,807 | |
Total provision for (reversal of) credit losses | | | 128 | | | | - | | | | - | | | | 128 | | | | (375) | |
| | | | | | | | | | | | | | | | | | | | |
CREDIT QUALITY(1) | | | | | | | | | | | | | | | | | | | | |
Non-accruing loans | | $ | 1,967 | | | $ | 1,961 | | | $ | 1,494 | | | | | | | | | |
Accruing loans 90 days or more past due | | | 24 | | | | 127 | | | | 191 | | | | | | | | | |
Total non-performing loans | | | 1,991 | | | | 2,088 | | | | 1,685 | | | | | | | | | |
Foreclosed assets | | | 60 | | | | 37 | | | | 320 | | | | | | | | | |
Total non-performing assets | | $ | 2,051 | | | $ | 2,125 | | | $ | 2,005 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total non-performing loans to total loans | | | 1.37 | % | | | 1.54 | % | | | 1.26 | % | | | | | | | | |
Total non-performing assets to total assets | | | 0.76 | | | | 0.82 | | | | 0.76 | | | | | | | | | |
| (1) | Credit quality data and ratios are as of the end of each period presented. |
11
Document and Entity Information |
Jan. 25, 2024 |
|---|---|
| Document and Entity Information [Abstract] | |
| Document Type | 8-K |
| Document Period End Date | Jan. 25, 2024 |
| Entity Registrant Name | Catalyst Bancorp, Inc. |
| Entity Incorporation, State or Country Code | LA |
| Entity File Number | 001-40893 |
| Entity Tax Identification Number | 86-2411762 |
| Entity Address, Address Line One | 235 N. Court Street |
| Entity Address, City or Town | Opelousas |
| Entity Address State Or Province | LA |
| Entity Address, Postal Zip Code | 70570 |
| City Area Code | 337 |
| Local Phone Number | 948-3033 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common Stock |
| Trading Symbol | CLST |
| Security Exchange Name | NASDAQ |
| Entity Emerging Growth Company | true |
| Entity Ex Transition Period | false |
| Entity Central Index Key | 0001849867 |
| Amendment Flag | false |
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