Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission file number: 001-40893 CATALYST BANCORP, INC. (Exact name of registrant as specified in its charter) Louisiana 86-2411762 (State or other jurisdiction of incorporation of organization) (I.R.S. Employer Identification No.) 235 N. Court Street, Opelousas, Louisiana 70570 (Address of principal executive offices; Zip Code) (337) 948-3033 (Registrant's telephone number, including area code) None (Former ...

Exhibit 99.1 For more information: Joe Zanco, President and CEO (337) 948-3033 For Immediate Release Release Date: July 24, 2025 Catalyst Bancorp, Inc. Announces 2025 Second 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 $521,000 for the second quarter of 2025, compared to net income of $586,000 for the first quarter of 2025. "We're pleased to see both loan and de ...

OPELOUSAS, La., July 24, 2025 /PRNewswire/ -- Catalyst Bancorp, Inc. (Nasdaq: "CLST") (the "Company"), the parent company for Catalyst Bank (the "Bank") (www.catalystbank.com), reported net income of $521,000 for the second quarter of 2025, compared to net income of $586,000 for the first quarter of 2025. "We're pleased to see both loan and deposit growth during the quarter," said Joe Zanco, President and Chief Executive Officer of the Company and Bank. "When given the opportunity to earn new business, our ...

Commission file number: 001-40893 CATALYST BANCORP, INC. (Exact name of registrant as specified in its charter) Louisiana 86-2411762 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (I.R.S. Employer Identification No.) (State or other jurisdiction of incorporation of organization) 235 N. Court Street, Opelousas, Louisiana 70570 (Address of principal executive offices; Zip Code) (337) 948-3033 (Registrant's telephone number, including area code) None (Former ...

Exhibit 99.1 For more information: Joe Zanco, President and CEO (337) 948-3033 For Immediate Release Release Date: April 24, 2025 Catalyst Bancorp, Inc. Announces 2025 First 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 $586,000 for the first quarter of 2025, compared to net income of $626,000 for the fourth quarter of 2024. "Loan growth was muted to start the ye ...

| (Dollars in thousands) | 3/31/2025 | 12/31/2024 | Change | | | | | --- | --- | --- | --- | --- | --- | --- | | Real estate loans | | | | | | | | One- to four-family residential | $ 82,025 | $ 81,097 | | $928 | 1 | % | | Commercial real estate | 22,103 | 22,108 | | (5) | - | | | Construction and land | 32,038 | 32,941 | | (903) | (3) | | | Multi-family residential | 2,530 | 2,570 | | (40) | (2) | | | Total real estate loans | 138,696 | 138,716 | | (20) | - | | | Other loans | | | | | | | | Commercial and i ...

Loan Portfolio - As of December 31, 2024, Catalyst Bancorp's loan portfolio totaled $167.1 million, representing 60.4% of total assets[24] - Single-family residential mortgage loans accounted for $81.1 million, or 48.5% of the total loan portfolio, with an average outstanding balance of $71,000 per loan[30] - Commercial real estate and multi-family residential loans totaled $24.7 million, or 14.7% of the total loan portfolio[36] - The commercial real estate loan portfolio was $22.1 million, or 13.2% of the total loan portfolio, with an average loan size of $243,000[37] - As of December 31, 2024, the outstanding balance of construction and land loans totaled $32.9 million, representing 19.7% of total loans outstanding, more than doubling since December 31, 2023[42] - Commercial and industrial loans totaled $26.4 million, or 15.8% of the total loan portfolio, at December 31, 2024, with net charge-offs of $128,000 during the year, primarily from unsecured loans[47][48] - The company’s consumer loans amounted to $1.9 million, or 1.3% of the total loan portfolio, with net charge-offs of $35,000 in 2024, up from $22,000 in 2023[50][51] - The outstanding balance of non-residential commercial construction loans was $27.3 million as of December 31, 2024, with all loans performing in accordance with their terms[43] - Single-family residential construction loans totaled $3.1 million, with the largest loan in this segment being $2.2 million[45] - Loans classified as "substandard" totaled $2.8 million at December 31, 2024, down from $3.3 million in 2023, while "special mention" loans increased to $478,000 from $212,000[59] Financial Performance - The company reported a net loss of $3.1 million for 2024, compared to net income of $526,000 for 2023[176] - Net interest income increased by $1.8 million, or 23.9%, to $9.5 million, with net interest margin rising 59 basis points to 3.65%[176] - Total interest income for the year ended December 31, 2024, was $13.9 million, an increase from $9.7 million in 2023[195] - Total non-interest income for 2024 was a loss of $3.8 million, compared to a gain of $1.6 million in 2023[195] - The efficiency ratio increased to 160.51% in 2024 from 92.29% in 2023, indicating a decline in operational efficiency[195] - Non-accrual loans as a percent of total loans outstanding decreased to 0.94% in 2024 from 1.36% in 2023[196] Asset Management - Total assets increased to $276.7 million at December 31, 2024, up $5.8 million or 2.1% from the previous year[176] - The investment securities portfolio amounted to $42.2 million, representing 15.2% of total assets as of December 31, 2024[70] - Total investment securities decreased by $41.8 million, or 49.8%, to $42.2 million as of December 31, 2024, compared to $84.0 million in 2023[212] - The largest component of the investment securities portfolio was pass-through mortgage-backed securities totaling $27.2 million[70] - The company sold 50 available-for-sale investment securities during 2024, resulting in a total loss of $5.5 million[70] Capital and Regulatory Compliance - Catalyst Bank's capital exceeded all applicable regulatory requirements as of December 31, 2024[97] - Catalyst Bank is considered "well capitalized" as of December 31, 2024, meeting the criteria with a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, and a common equity Tier 1 ratio of 6.5% or greater[116] - Catalyst Bancorp is subject to the FRB's capital adequacy guidelines, with a threshold for the "small bank holding company" exception increased to $3.0 billion, meaning it is not subject to capital requirements until consolidated assets exceed this amount[136] - The company requires a minimum debt service coverage ratio of 125% for commercial and industrial loans[47] - Catalyst Bank is in compliance with the loans-to-one borrower limitations, which restrict loans to a single borrower to 15% of unimpaired capital and surplus[102] Strategic Initiatives - Catalyst Bancorp's strategy has shifted to focus on attracting small- to mid-sized businesses and increasing holdings of commercial and multi-family residential real estate loans[20] - The company aims to grow its loan portfolio with greater diversification, focusing on commercial lending[179] - A new core processing system was implemented in the first quarter of 2024 to enhance technology tools and online services[179] - Catalyst Bancorp may consider future acquisitions of banking and financial services companies, although no agreements are currently in place[13] - The company plans to expand through potential acquisitions of other financial institutions in its market area[179] Taxation and Legal Compliance - Catalyst Bancorp is subject to federal income taxation in the same manner as other corporations, with specific exceptions noted[145] - The Louisiana Corporation Income Tax for 2024 applies at graduated rates from 3.5% on the first $50,000 of taxable income to 7.5% on income exceeding $150,000, with a flat rate of 5.5% starting in 2025[151] - The Sarbanes-Oxley Act of 2002 aims to improve corporate responsibility and enhance penalties for accounting improprieties at publicly traded companies[142] - The Gramm-Leach-Bliley Act of 1999 allows qualifying bank holding companies to engage in a broader array of financial activities, including insurance underwriting and investment banking[135]

Financial Performance - Net income for the fourth quarter of 2024 was $626,000, an increase of $179,000, or 40%, compared to the third quarter of 2024[1]. - Net income for Q4 2024 was $626,000, a significant increase from $307,000 in Q4 2023[35]. - The return on average assets for Q4 2024 was 0.91%, up from 0.47% in Q4 2023[35]. - The efficiency ratio improved to 72.54% in Q4 2024 from 81.07% in Q4 2023[35]. Loan and Deposit Growth - The loan portfolio increased by a record $22.2 million, or 15%, for the year, totaling $167.1 million at December 31, 2024[2]. - Total deposits increased by $18.2 million, or 11%, to $185.7 million at December 31, 2024, largely due to a seasonal increase in public funds[11]. - Total loans increased to $167,187,000 in Q4 2024 from $140,757,000 in Q4 2023, representing a growth of 19%[35]. - Loans receivable, net of unearned income, were $167.1 million as of December 31, 2024, compared to $165.9 million in Q3 2024[30]. Interest Income and Margin - The net interest margin for the fourth quarter of 2024 was 3.92%, up six basis points compared to the prior quarter[16]. - The net interest margin for Q4 2024 was 3.92%, compared to 3.86% in Q3 2024[30]. - Total interest income for Q4 2024 was $3,511,000, an increase of 35% compared to $2,603,000 in Q4 2023[33]. - Net interest income for the fourth quarter of 2024 was $2.5 million, down $60,000, or 2%, compared to the third quarter of 2024[17]. - Net interest income after provision for credit losses for Q4 2024 was $2,472,000, up from $1,816,000 in Q4 2023, reflecting a 36% increase[33]. Non-Interest Income and Expense - For Q4 2024, non-interest income totaled $337,000, down $283,000 from $620,000 in Q3 2024[21]. - Total non-interest income for Q4 2024 was $337,000, a decrease from $672,000 in Q4 2023, resulting in a loss of $3,840,000 for the year[35]. - Non-interest expense for Q4 2024 was $2.0 million, a decrease of $222,000 or 10% compared to Q3 2024[22]. - Total non-interest expense for Q4 2024 was $2,038,000, compared to $2,122,000 in Q4 2023, indicating a reduction of 4%[35]. Asset Quality - Non-performing assets (NPAs) totaled $1.8 million, up $214,000, or 13%, from the previous quarter, with a ratio of NPAs to total assets at 0.66%[6]. - The allowance for loan losses totaled $2.5 million, or 1.51% of total loans, compared to $2.4 million, or 1.46% of total loans, in the previous quarter[7]. - The allowance for loan losses increased to $2.522 million in Q4 2024 from $2.414 million in Q3 2024[30]. - Total allowance for credit losses at the end of Q4 2024 was $2,643,000, compared to $2,381,000 at the end of Q4 2023[37]. - Total non-performing loans to total loans ratio was 0.98% in Q4 2024, an increase from 0.87% in Q4 2023[37]. Shareholder Equity and Stock Repurchase - Total shareholders' equity decreased to $80.2 million as of December 31, 2024, from $81.7 million in Q3 2024[30]. - The Company repurchased 120,977 shares of common stock at an average cost per share of $11.70 during the fourth quarter of 2024[15]. Investment Securities - Total investment securities were $42.2 million, or 15% of total assets, down $3.5 million, or 8%, compared to the previous quarter[9]. - The ratio of total loans to total deposits was 90% at December 31, 2024, compared to 99% at September 30, 2024[11].

Financial Performance - Net income for the three months ended September 30, 2024, was $447,000, up $296,000, or 196.0%, compared to the same period in 2023[116]. - The company reported a net loss of $3.7 million for the nine months ended September 30, 2024, compared to net income of $219,000 for the same period in 2023[116]. - For the three months ended September 30, 2024, the company reported net income of $447,000, compared to $151,000 for the same period in 2023[149]. - For the nine months ended September 30, 2024, the Company reported a net loss of $3.7 million, compared to net income of $219,000 for the same period in 2023[163]. - The Company reported an income tax benefit of $1.0 million for the nine months ended September 30, 2024, compared to an income tax expense of $2,000 for the same period in 2023[175]. Asset and Loan Growth - Total assets increased by $9.7 million, or 3.6%, to $280.6 million at September 30, 2024, from $270.9 million at December 31, 2023[116]. - Loans increased by $21.0 million, or 14.5%, to $165.9 million at September 30, 2024, compared to December 31, 2023[116]. - Total loans at the end of the period were $165,882,000, an increase from $135,672,000 at December 31, 2023[127]. - Total loans composition showed a significant increase in construction and land loans by $16.5 million, or 118.7%, to $30.3 million at September 30, 2024[123]. Non-Performing Assets - Non-performing assets decreased by $440,000, or 21.5%, to $1.6 million at September 30, 2024, from December 31, 2023[116]. - Total non-performing loans decreased to 1,438, down from 1,991 at December 31, 2023[129]. Revenue and Income Sources - Total commercial real estate revenue increased by $1,226,000, or 5.7%, to $22,704,000 compared to $21,478,000 in the previous period[124]. - Multi-family residential revenue surged by $6,947,000, or 494.1%, reaching $8,353,000, up from $1,406,000[124]. - Total construction and land revenue rose by $16,453,000, or 118.7%, totaling $30,310,000 compared to $13,857,000[124]. - Oilfield services revenue increased by $7,756,000, or 124.0%, to $14,010,000 from $6,254,000[124]. Interest Income and Expense - Net interest income for the three months ended September 30, 2024, was $2.5 million, up $584,000, or 30.0%, compared to the same period in 2023[116]. - Total interest income rose by $1.2 million, or 48.7%, to $3.7 million for the three months ended September 30, 2024[150]. - Total interest income increased by $3.3 million, or 46.7%, to $10.4 million for the nine months ended September 30, 2024[166]. - Total interest expense increased by $618,000, or 118.6%, to $1.1 million for the three months ended September 30, 2024[154]. - Total interest expense increased by $2.0 million, or 152.7%, to $3.3 million for the nine months ended September 30, 2024[170]. Non-Interest Income and Expenses - Non-interest income totaled $620,000, up $314,000, or 102.6%, compared to the same period in 2023[157]. - Non-interest expense for the three months ended September 30, 2024, was $2.3 million, up $179,000, or 8.6%, compared to the same period in 2023[116]. - Non-interest expense totaled $7.1 million for the nine months ended September 30, 2024, up $662,000, or 10.3%, compared to the same period in 2023[174]. - Non-interest income decreased by $5.1 million for the nine months ended September 30, 2024, primarily due to a $5.5 million loss on the sales of investment securities[173]. Deposits and Borrowings - Deposits increased by $1.8 million, or 1.1%, to $167.4 million at September 30, 2024, compared to December 31, 2023[116]. - Total deposits reached $167.436 million, reflecting a 1.1% increase from $165.622 million as of December 31, 2023[136]. - Total borrowings increased to $29.5 million, up $10.1 million from December 31, 2023, with a $20.0 million BTFP advance at a 4.76% interest rate[139]. Equity and Share Repurchase - Shareholders' equity totaled $81.7 million, representing 29.1% of total assets, down from $84.6 million or 31.2% at December 31, 2023[141]. - The company repurchased 362,199 shares at an average cost of $11.98 per share during the nine months ended September 30, 2024[142]. Liquidity - As of September 30, 2024, the Company had total unused and available liquidity of $71.7 million[182].

Financial Performance - Net income for the third quarter of 2024 was $447,000, down $80,000 from $527,000 in the second quarter of 2024[1]. - Net income for Q3 2024 was $447,000, compared to a net income of $151,000 in Q3 2023, indicating a year-over-year increase of 195.4%[28]. - Net interest income for the third quarter of 2024 was $2.5 million, up $84,000, or 3%, compared to the second quarter of 2024[15]. - Net interest income after provision for credit losses was $2,195,000 for Q3 2024, compared to $1,948,000 in Q3 2023, reflecting a 12.7% increase[26]. - Total non-interest income for Q3 2024 was $620,000, up from $306,000 in Q3 2023, marking a significant increase of 102.6%[28]. - Total non-interest expense for Q3 2024 was $2,260,000, slightly higher than $2,081,000 in Q3 2023, representing an increase of 8.6%[28]. Asset and Loan Growth - The loan portfolio grew by a record $12.6 million, or 8%, totaling $165.9 million at September 30, 2024[1][2]. - Loans receivable, net of unearned income, increased to $165.882 million as of September 30, 2024, compared to $153.266 million at June 30, 2024[24]. - Total loans as of September 30, 2024, were $161,410,000, an increase from $134,851,000 in the same period last year, reflecting a growth of 19.7%[28]. Deposits and Equity - Total deposits were $167.4 million, down $12.6 million, or 7%, from June 30, 2024[10]. - Total deposits decreased to $167.436 million as of September 30, 2024, from $180.065 million at June 30, 2024[24]. - Shareholders' equity increased to $81.667 million as of September 30, 2024, compared to $81.013 million at June 30, 2024[24]. - Total shareholders' equity increased to $81,307,000 as of September 30, 2024, compared to $80,965,000 at the end of Q2 2024[28]. Interest and Yield - The net interest margin for the third quarter of 2024 was 3.86%, an increase of 14 basis points from the prior quarter[15]. - The average yield on loans receivable was 6.70% for Q3 2024, up from 6.38% in Q2 2024[17]. - Total interest income for Q3 2024 was $3,671,000, an increase of 48.7% compared to $2,469,000 in Q3 2023[26]. - For Q3 2024, total interest-earning assets amounted to $261.069 million, generating net interest income of $2.532 million with an average yield of 2.94%[17]. Non-Performing Assets and Loan Losses - Non-performing assets (NPAs) decreased to $1.6 million, with a ratio of NPAs to total assets at 0.57%[5]. - Total non-performing loans decreased to $1,438,000, down from $1,600,000 in the previous quarter[31]. - The total non-performing loans to total loans ratio improved to 0.87%, compared to 1.04% in the prior quarter[31]. - The allowance for loan losses was $2.4 million, or 1.46% of total loans, compared to 1.45% in the previous quarter[6]. - The allowance for loan losses increased to $2,414,000 at the end of the period, up from $2,215,000 in the previous quarter[31]. - The provision for loan losses was $330,000 for the quarter, compared to a reversal of $62,000 in the prior quarter[31]. Operational Changes - The company upgraded to a new core processing system in Q1 2024, contributing to a significant rise in data processing expenses in Q3 2024[19]. - Non-interest expense for Q3 2024 totaled $2.3 million, up $192,000 or 9% compared to Q2 2024, driven by a 5% increase in salaries and a 72% rise in data processing expenses[19]. Company Overview - Catalyst Bancorp, Inc. operates six full-service branches in the Acadiana region of Louisiana, focusing on commercial and retail banking products[20].