Financial Performance - For the nine months ended September 30, 2025, net income was $1.6 million, compared to a net loss of $3.7 million for the same period in 2024[113]. - For the three months ended September 30, 2025, the company reported net income of $489,000, an increase from $447,000 in the same period of 2024[146]. - Non-interest income for the nine months ended September 30, 2025, totaled $1.2 million, an increase of $5.4 million compared to the same period in 2024[169]. - Non-interest income totaled $315,000 for the three months ended September 30, 2025, down $305,000 compared to the same period in 2024[155]. - Income tax expense was reported at $357,000 for the nine months ended September 30, 2025, compared to an income tax benefit of $1.0 million for the same period in 2024[177]. Asset and Liability Management - Total assets increased by $7.1 million, or 2.6%, to $283.8 million at September 30, 2025, from $276.7 million at December 31, 2024[113]. - Loans decreased by $2.3 million, or 1.4%, to $164.8 million at September 30, 2025, compared to $167.1 million at December 31, 2024[113]. - Total deposits increased to $186,372 thousand as of September 30, 2025, reflecting a 0.4% increase from $185,674 thousand at December 31, 2024[132]. - The ratio of total loans to total deposits was 88.4% as of September 30, 2025, compared to 90.0% at December 31, 2024[132]. - Total term debt at September 30, 2025, was $74.072 million, with expectations of retaining a majority of maturing certificates of deposit[187]. Investment and Securities - Investment securities rose by $17.6 million, or 41.8%, to $59.8 million at September 30, 2025, compared to December 31, 2024[113]. - Total investment securities increased to $59.8 million, a rise of 41.8% from $42.2 million at the end of 2024[126]. - The weighted average yield of newly purchased securities was 5.12% as of September 30, 2025[126]. - Net unrealized losses on available-for-sale securities decreased to $3.4 million from $4.5 million at the end of 2024[127]. Non-Performing Assets - Non-performing assets increased by $74,000, or 4.1%, to $1.9 million at September 30, 2025, from December 31, 2024[113]. - Total non-performing loans rose to $1.823 million, up from $1.631 million at the end of 2024[125]. - The allowance for credit losses on loans was $2.4 million, or 1.45% of total loans, down from 1.51% at the end of 2024[121]. - Net loan charge-offs for the nine months ended September 30, 2025, totaled $83,000, primarily related to residential mortgages and overdrawn deposit accounts[121]. Revenue and Expenses - For the three months ended September 30, 2025, net interest income was $2.5 million, down $82,000, or 3.2%[113]. - Total interest income decreased by $158,000, or 4.3%, to $3.5 million for the three months ended September 30, 2025, compared to the same period in 2024[147]. - Total interest income for the nine months ended September 30, 2025, was $10.3 million, down from $10.4 million in 2024[162]. - Non-interest expense for the nine months ended September 30, 2025, decreased by $541,000, or 7.6%, to $6.6 million compared to the same period in 2024[113]. - Total interest expense decreased by $76,000, or 6.7%, to $1.1 million for the three months ended September 30, 2025[152]. Strategic Initiatives - The company has shifted its business strategy to a relationship-based community bank model targeting small- to mid-sized businesses while continuing to serve its traditional customer base[111]. - Total commercial real estate revenue increased to $33.679 million in Q3 2025, up 52.3% from $22.108 million in Q4 2024[120]. - Health service facilities revenue surged by 746.1%, reaching $3.325 million compared to $393,000 in the previous period[120]. - Total construction and land revenue decreased by 42.8%, falling to $18.850 million from $32.941 million[120]. Shareholder Information - Shareholders' equity increased to $81.6 million, or 28.7% of total assets, up 1.7% from $80.2 million at December 31, 2024[137]. - The company repurchased 148,546 shares at an average cost of $11.98 per share during the nine months ended September 30, 2025[138]. Liquidity and Commitments - Total unused and available liquidity as of September 30, 2025, was $95.663 million[181]. - Commitments to originate loans totaled $120,000 as of September 30, 2025[186].

Financial Performance - Net income for the third quarter of 2025 was $489,000, a decrease of $32,000 or 6% from the second quarter of 2025[1] - Net interest income for the third quarter of 2025 was $2.5 million, down $18,000 or 1% from the previous quarter[16] - Non-interest income for Q3 2025 totaled $315,000, down $29,000 or 8% from Q2 2025, primarily due to refunded fees for foreign ATM usage[20] - Non-interest expense for Q3 2025 was $2.2 million, an increase of $24,000 or 1% compared to Q2 2025, with salaries and employee benefits rising by $50,000 or 4%[21] - The provision for credit losses in Q3 2025 was a reversal of $36,000, compared to a provision of $337,000 in Q3 2024[31] - Earnings per share for Q3 2025 were $0.13, unchanged from Q2 2025[31] - The efficiency ratio for Q3 2025 was 79.67%, compared to 77.46% in Q2 2025 and 71.72% in Q3 2024[33] Loans and Deposits - Total loans decreased by $2.8 million, or 2%, to $164.8 million as of September 30, 2025, compared to June 30, 2025[3] - The ratio of total loans to total deposits was 88% at September 30, 2025, down from 92% at June 30, 2025[11] - Total loans as of September 30, 2025, were $167,032,000, a slight decrease from $167,627,000 in Q2 2025 and an increase from $161,410,000 in Q3 2024[33] - Total deposits increased by $4.2 million, or 2%, to $186.4 million at September 30, 2025, driven by high-yield account specials[10] - Total deposits as of September 30, 2025, were $179,825,000, compared to $179,426,000 in Q2 2025 and $169,437,000 in Q3 2024[33] Asset Quality - Non-performing assets (NPAs) rose to $1.9 million, with a ratio of NPAs to total assets at 0.67% as of September 30, 2025[7] - Total non-performing loans increased to $1,823,000 in Q3 2025 from $1,670,000 in Q2 2025 and $1,438,000 in Q3 2024[36] - The total non-performing loans to total loans ratio was 1.11% in Q3 2025, up from 1.00% in Q2 2025 and 0.87% in Q3 2024[36] - The allowance for credit losses on loans was $2.4 million, or 1.45% of total loans, with a reversal of provision for credit losses of $36,000 recorded in the third quarter[8] Investments and Capital - Total investment securities increased by $15.6 million, or 35%, to $59.8 million, representing 21% of total assets[9] - The common equity Tier 1 capital ratio was 43.95% as of September 30, 2025, compared to 43.72% in Q2 2025[33] Stock Activity - The company repurchased 13,212 shares of common stock at an average cost of $12.93 during the third quarter of 2025[14] Branch Operations - Catalyst Bancorp, Inc. operates six full-service branches in Louisiana, focusing on commercial and retail banking products[23]

Financial Position - Total assets decreased by $2.9 million, or 1.1%, to $273.8 million at June 30, 2025, from $276.7 million at December 31, 2024[120] - Loans increased by $493,000, or 0.3%, to $167.6 million at June 30, 2025, compared to $167.1 million at December 31, 2024[117] - Non-performing assets decreased by $75,000, or 4.1%, to $1.8 million at June 30, 2025, from $1.875 million at December 31, 2024[117] - Investment securities increased by $2.1 million, or 4.9%, to $44.2 million at June 30, 2025, from $42.1 million at December 31, 2024[117] - Deposits decreased by $3.5 million, or 1.9%, to $182.2 million at June 30, 2025, from $185.7 million at December 31, 2024[117] - Total loans at the end of the period increased to $167,569,000 from $153,266,000, reflecting a growth of 9.3%[127] - Total non-performing loans increased to $1,670,000, up from $1,600,000, representing a rise of 4.4%[130] - Total deposits decreased to $182,211,000, down 1.9% from $185,674,000[136] - Total uninsured deposits were approximately $49.6 million at June 30, 2025, down from $53.7 million at December 31, 2024[139] - Shareholders' equity increased to $80.8 million, or 29.5% of total assets, at June 30, 2025, up $595,000, or 0.7%, from $80.2 million at December 31, 2024[141] Income and Expenses - Net interest income for the three months ended June 30, 2025, was $2.5 million, up $20,000, or 0.8%, compared to the same period in 2024[117] - Net interest margin for the six months ended June 30, 2025, was 3.93%, up 51 basis points compared to the same period in 2024[117] - Net income for the six months ended June 30, 2025, was $1.1 million, compared to a net loss of $4.2 million for the same period in 2024[117] - Non-interest expense for the six months ended June 30, 2025, was $4.4 million, down $483,000, or 9.9%, compared to the same period in 2024[117] - Net interest income increased by $292,000, or 6.4%, to $4.8 million for the six months ended June 30, 2025, compared to the same period in 2024[174] - Total interest income rose by $155,000, or 2.3%, to $6.8 million for the six months ended June 30, 2025, driven by a $933,000 increase in interest income on loans, up 20.3%[169] - Non-interest income totaled $897,000 for the six months ended June 30, 2025, a recovery from a net loss of $4.8 million in the same period in 2024[177] - Non-interest expense decreased by $483,000, or 9.9%, to $4.4 million for the six months ended June 30, 2025, primarily due to prior year expenses related to a core processing system upgrade[178] Credit and Loans - The allowance for credit losses on loans was $2.4 million, or 1.45% of total loans, down from 1.51% at December 31, 2024[125] - The provision for credit losses was zero for the three months ended June 30, 2025, compared to $99,000 for the same period in 2024[153] - The provision for credit losses was zero for the six months ended June 30, 2025, compared to $194,000 for the same period in 2024[175] - The average loan yield was 6.68% for the three months ended June 30, 2025, up from 6.38% for the same period in 2024[155] - The average yield on loans increased to 6.68% for the six months ended June 30, 2025, up from 6.27% for the same period in 2024[170] Business Strategy - The company shifted its business strategy to a relationship-based community bank model targeting small- to mid-sized businesses while continuing to serve its traditional customer base[115] Real Estate and Construction - Total commercial real estate increased to $33,976,000, up 54% from $22,108,000[124] - Health service facilities in commercial real estate saw a significant increase of 751%, rising to $3,345,000 from $393,000[124] - Total construction and land decreased to $20,650,000, down 37% from $32,941,000[124] - Oilfield services in commercial and industrial loans decreased by 46%, falling to $8,081,000 from $14,823,000[124] Liquidity and Commitments - Total unused and available liquidity as of June 30, 2025, was $75.1 million, including advances from the FHLB of Dallas and a line of credit with a primary correspondent bank[187] - Total commitments as of June 30, 2025, amount to $32,124,000, with $23,735,000 due within 1 year[192] - The undisbursed portion of construction loans in process is $8,780,000, with $4,953,000 due within 1-3 years and $3,827,000 due within 3-5 years[192] - Unused lines of credit total $13,370,000, with $10,012,000 available within 1 year and $2,174,000 within 1-3 years[192] - Total term debt is $65,311,000, with $52,078,000 due within 1 year and $8,703,000 due within 1-3 years[193] - Management expects to retain a majority of maturing certificates of deposit, which total $55,311,000[193] - If a substantial portion of deposits is not retained, the company may utilize borrowings or raise interest rates on deposits[193]

```markdown [Executive Summary](index=1&type=section&id=Executive%20Summary) Overview of the company's Q2 2025 financial performance and management's strategic perspective [Second Quarter 2025 Financial Highlights](index=1&type=section&id=1.1%20Second%20Quarter%202025%20Financial%20Highlights) Net income for Q2 2025 decreased slightly to $521,000, while loan and deposit portfolios experienced growth Financial Performance Summary | Metric | Q2 2025 | Q1 2025 | | :---------------- | :------ | :------ | | Net Income | $521,000 | $586,000 | [Management Commentary](index=1&type=section&id=1.2%20Management%20Commentary) Management expressed satisfaction with strong loan and deposit growth, noting success in new business and market momentum - Management is pleased with both loan and deposit growth, noting a strong success rate in new business and building momentum[2](index=2&type=chunk) [Loan Portfolio Analysis](index=2&type=section&id=Loan%20Portfolio%20Analysis) Analysis of the company's loan portfolio composition, growth, and changes across various categories [Loan Composition and Growth](index=2&type=section&id=2.1%20Loan%20Composition%20and%20Growth) Total loans increased by $1.5 million to $167.6 million, primarily due to commercial real estate and multi-family growth, offsetting other declines Loan Portfolio Details | Loan Category | 6/30/2025 ($ thousands) | 3/31/2025 ($ thousands) | Change ($ thousands) | Change (%) | | :------------------------ | :---------------------- | :---------------------- | :------------------- | :--------- | | One- to four-family residential | 80,195 | 82,025 | (1,830) | (2)% | | Commercial real estate | 33,976 | 22,103 | 11,873 | 54% | | Construction and land | 20,650 | 32,038 | (11,388) | (36)% | | Multi-family residential | 5,432 | 2,530 | 2,902 | 115% | | Total real estate loans | 140,253 | 138,696 | 1,557 | 1% | | Commercial and industrial | 25,035 | 25,447 | (412) | (2)% | | Consumer | 2,281 | 1,934 | 347 | 18% | | Total other loans | 27,316 | 27,381 | (65) | -% | | **Total loans** | **167,569** | **166,077** | **1,492** | **1%** | - **Four construction loans** totaling **$14.5 million** were converted to amortizing real estate loans, with **$2.9 million** classified as multi-family and the remainder as commercial real estate[4](index=4&type=chunk) [Major Loan Segments](index=2&type=section&id=2.2%20Major%20Loan%20Segments) Commercial real estate saw substantial growth in retail, hospitality, and health services, while construction and land loans declined due to conversions Segment Details | Segment | 6/30/2025 ($ thousands) | 3/31/2025 ($ thousands) | Change ($ thousands) | Change (%) | | :---------------------------- | :---------------------- | :---------------------- | :------------------- | :--------- | | **Commercial Real Estate** | | | | | | Retail | 9,739 | 3,723 | 6,016 | 162% | | Hospitality | 5,849 | 3,342 | 2,507 | 75% | | Health service facilities | 3,345 | 389 | 2,956 | 760% | | **Construction and Land** | | | | | | Multi-family residential | 8,997 | 11,297 | (2,300) | (20)% | | Hospitality | - | 2,716 | (2,716) | (100)% | | Retail | - | 6,077 | (6,077) | (100)% | | Consumer residential | 2,222 | 1,531 | 691 | 45% | | **Commercial and Industrial** | | | | | | Oilfield services | 8,081 | 8,474 | (393) | (5)% | | Industrial equipment | 8,453 | 8,285 | 168 | 2% | [Credit Quality and Allowance for Credit Losses](index=3&type=section&id=Credit%20Quality%20and%20Allowance%20for%20Credit%20Losses) Details on the company's credit quality, including non-performing assets and allowance for credit losses [Non-Performing Assets and Loans](index=3&type=section&id=3.1%20Non-Performing%20Assets%20and%20Loans) Non-performing assets and loans slightly increased in Q2 2025, with residential mortgage loans forming the majority of NPLs Non-Performing Assets and Loans Summary | Metric | 6/30/2025 ($ thousands) | 3/31/2025 ($ thousands) | Change ($ thousands) | Change (%) | | :----------------------------------- | :---------------------- | :---------------------- | :------------------- | :--------- | | Non-performing assets (NPAs) | 1,800 | 1,700 | 100 | 5.88% | | NPAs to total assets | 0.64% | 0.63% | 0.01% | | | Non-performing loans (NPLs) | 1,670 | 1,645 | 25 | 1.52% | | NPLs to total loans | 1.00% | 0.99% | 0.01% | | | NPLs as 1-4 family residential loans | 99% | 98% | 1% | | [Allowance for Credit Losses and Net Charge-offs](index=3&type=section&id=3.2%20Allowance%20for%20Credit%20Losses%20and%20Net%20Charge-offs) Allowance for credit losses on loans slightly decreased, with zero provision, while net charge-offs marginally rose from residential mortgages and overdrawn accounts Allowance for Credit Losses Details | Metric | 6/30/2025 ($ thousands) | 3/31/2025 ($ thousands) | Change ($ thousands) | Change (%) | | :----------------------------------- | :---------------------- | :---------------------- | :------------------- | :--------- | | Allowance for credit losses on loans | 2,400 | 2,500 | (100) | (4)% | | ACL to total loans | 1.45% | 1.51% | (0.06)% | | | Provision for credit losses | 0 | 0 | 0 | 0% | | Net loan charge-offs | 42 | 39 | 3 | 7.69% | - Net loan charge-offs in Q1 and Q2 2025 were mainly due to residential mortgage loans and overdrawn deposit accounts[8](index=8&type=chunk) [Deposit Analysis](index=4&type=section&id=Deposit%20Analysis) Examines the composition and growth of the company's deposit base, including public fund deposits [Deposit Composition and Growth](index=4&type=section&id=4.1%20Deposit%20Composition%20and%20Growth) Total deposits grew by $1.6 million to $182.2 million, driven by non-interest-bearing demand and savings accounts, partially offset by other deposit decreases Deposit Category Details | Deposit Category | 6/30/2025 ($ thousands) | 3/31/2025 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------------- | :---------------------- | :---------------------- | :------------------- | :--------- | | Non-interest-bearing demand deposits | 31,155 | 26,093 | 5,062 | 19% | | Interest-bearing demand deposits | 35,307 | 42,737 | (7,430) | (17)% | | Money market | 9,437 | 9,737 | (300) | (3)% | | Savings | 51,001 | 42,542 | 8,459 | 20% | | Certificates of deposit | 55,311 | 59,489 | (4,178) | (7)% | | **Total deposits** | **182,211** | **180,598** | **1,613** | **1%** | - The change in deposits was mainly due to fluctuations in public funds and inflows from commercial customers[10](index=10&type=chunk) - The ratio of total loans to total deposits remained stable at **92%** for both June 30 and March 31, 2025[11](index=11&type=chunk) [Public Fund Deposits](index=4&type=section&id=4.2%20Public%20Fund%20Deposits) Public fund deposits slightly decreased to 16% of total deposits, with a larger portion shifting into savings accounts Public Fund Deposit Breakdown | Metric | 6/30/2025 ($ thousands) | 3/31/2025 ($ thousands) | Change ($ thousands) | Change (%) | | :----------------------------------- | :---------------------- | :---------------------- | :------------------- | :--------- | | Total public fund deposits | 29,000 | 29,800 | (800) | (2.68)% | | Public funds as % of total deposits | 16% | 17% | (1)% | | | Public funds in non-interest/interest-bearing demand deposits | 64% | 80% | (16)% | | - At June 30, 2025, a larger portion of public funds were held in savings accounts compared to March 31, 2025[12](index=12&type=chunk) [Capital and Shareholder Activity](index=4&type=section&id=Capital%20and%20Shareholder%20Activity) Reviews the company's shareholders' equity and activities related to its share repurchase program [Shareholders' Equity](index=4&type=section&id=5.1%20Shareholders'%20Equity) Consolidated shareholders' equity remained stable at $80.8 million, representing 29.5% of total assets Shareholders' Equity Summary | Metric | 6/30/2025 ($ thousands) | 3/31/2025 ($ thousands) | Change ($ thousands) | Change (%) | | :--------------------------- | :---------------------- | :---------------------- | :------------------- | :--------- | | Consolidated shareholders' equity | 80,800 | 80,600 | 200 | 0.25% | | Equity as % of total assets | 29.5% | 29.7% | (0.2)% | | [Share Repurchases](index=4&type=section&id=5.2%20Share%20Repurchases) The company continued its share repurchase program, buying back 62,385 shares in Q2 2025, significantly reducing originally issued common shares since January 2023 Share Repurchase Activity | Metric | Q2 2025 | Q1 2025 | | :----------------------------------- | :----------- | :----------- | | Shares repurchased | 62,385 | 72,949 | | Average cost per share | $11.91 | $11.86 | | Shares available for repurchase (6/30/2025) | 51,816 | N/A | | Total shares repurchased since 1/26/2023 | 1,147,184 | N/A | | % of common shares originally issued repurchased | ~22% | N/A | | Common shares outstanding (6/30/2025) | 4,142,816 | N/A | [Net Interest Income and Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Margin) Analyzes the company's net interest income, margin, and performance of interest-earning assets and liabilities [Net Interest Income Performance](index=5&type=section&id=6.1%20Net%20Interest%20Income%20Performance) Net interest income increased by 4% in Q2 2025 due to higher loan income and lower deposit costs, improving net interest margin by nine basis points Net Interest Income and Margin Metrics | Metric | Q2 2025 ($ thousands) | Q1 2025 ($ thousands) | Change ($ thousands) | Change (%) | | :---------------------- | :-------------------- | :-------------------- | :------------------- | :--------- | | Net interest income | 2,500 | 2,365 | 103 | 4% | | Net interest margin | 3.98% | 3.89% | 0.09% | | | Average yield on interest-earning assets | 5.58% | 5.54% | 0.04% | | | Average rate paid on interest-bearing liabilities | 2.51% | 2.56% | (0.05)% | | - Total interest income increased by **$87,000** (**3%**) due to higher income on loans, while total interest expense decreased by **$16,000** (**2%**) due to a decline in the cost of deposits[16](index=16&type=chunk) [Interest-Earning Assets and Interest-Bearing Liabilities](index=5&type=section&id=6.2%20Interest-Earning%20Assets%20and%20Interest-Bearing%20Liabilities) Average interest-earning assets slightly increased, driven by loans, while average interest-bearing liabilities decreased, mainly in demand, money market, and savings accounts Category Details | Category | Average Balance (Q2 2025, $ thousands) | Interest (Q2 2025, $ thousands) | Yield/Rate (Q2 2025) | Average Balance (Q1 2025, $ thousands) | Interest (Q1 2025, $ thousands) | Yield/Rate (Q1 2025) | | :---------------------------- | :----------------------------------- | :------------------------------ | :------------------- | :----------------------------------- | :------------------------------ | :------------------- | | **Interest-Earning Assets** | | | | | | | | Loans receivable | 167,627 | 2,792 | 6.68% | 166,145 | 2,738 | 6.68% | | Investment securities | 48,285 | 294 | 2.49% | 46,960 | 275 | 2.35% | | Other interest earning assets | 33,225 | 375 | 4.53% | 33,585 | 361 | 4.36% | | **Total interest-earning assets** | **249,137** | **3,461** | **5.58%** | **246,690** | **3,374** | **5.54%** | | **Interest-Bearing Liabilities** | | | | | | | | Demand, money market, savings | 92,088 | 466 | 2.03% | 94,133 | 483 | 2.08% | | Certificates of deposit | 57,018 | 459 | 3.23% | 55,846 | 458 | 3.32% | | **Total interest-bearing deposits** | **149,106** | **925** | **2.49%** | **149,979** | **941** | **2.54%** | | Borrowings | 9,619 | 68 | 2.84% | 9,573 | 68 | 2.85% | | **Total interest-bearing liabilities** | **158,725** | **993** | **2.51%** | **159,552** | **1,009** | **2.56%** | [Non-Interest Income and Expense](index=6&type=section&id=Non-Interest%20Income%20and%20Expense) Details the company's non-interest income and expenses, highlighting key drivers of changes [Non-Interest Income](index=6&type=section&id=7.1%20Non-Interest%20Income) Non-interest income significantly decreased in Q2 2025, primarily due to the absence of Q1 2025 insurance proceeds from foreclosed properties Total non-interest income Summary | Metric | Q2 2025 ($ thousands) | Q1 2025 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------- | :-------------------- | :-------------------- | :------------------- | :--------- | | Total non-interest income | 344 | 553 | (209) | (38)% | - Non-interest income for Q1 2025 included **$216,000** in insurance proceeds for fire and flood damages related to foreclosed properties, which was not present in Q2 2025[21](index=21&type=chunk) [Non-Interest Expense](index=6&type=section&id=7.2%20Non-Interest%20Expense) Total non-interest expense slightly decreased in Q2 2025, with a foreclosed assets write-down and increased loan collection related costs Total non-interest expense Summary | Metric | Q2 2025 ($ thousands) | Q1 2025 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------- | :-------------------- | :-------------------- | :------------------- | :--------- | | Total non-interest expense | 2,200 | 2,200 | (20) | (1)% | | Foreclosed assets expense | 14 | 88 | (74) | (84)% | | Other non-interest expense | 234 | 207 | 27 | 13% | - Foreclosed assets expense in Q2 2025 included a **$14,000** write-down, compared to net losses of **$88,000** on the sale of foreclosed assets in Q1 2025[22](index=22&type=chunk) - The increase in other non-interest expense was primarily due to higher loan collection related expenses[23](index=23&type=chunk) [Company Overview](index=6&type=section&id=Company%20Overview) Provides background information on Catalyst Bancorp, Inc. and its banking operations [About Catalyst Bancorp, Inc.](index=6&type=section&id=8.1%20About%20Catalyst%20Bancorp,%20Inc.) Catalyst Bancorp, Inc. is a Louisiana-based bank holding company for Catalyst Bank, operating for over 100 years in Acadiana with $273.8 million in assets and six branches - Catalyst Bancorp, Inc. (Nasdaq: CLST) is the parent company of Catalyst Bank, with **$273.8 million** in assets at June 30, 2025[24](index=24&type=chunk) - Catalyst Bank, formerly St. Landry Homestead Federal Savings Bank, has operated for **over 100 years** in south-central Louisiana's Acadiana region[24](index=24&type=chunk) - The bank offers commercial and retail banking products through **six full-service branches** located in Carencro, Eunice, Lafayette, Opelousas, and Port Barre[24](index=24&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This disclaimer notes forward-looking statements reflect management's beliefs but are subject to risks and uncertainties, with no obligation for the company to update them - The news release contains forward-looking statements, which are forecasts of financial results and operations, subject to risk factors and uncertainties[26](index=26&type=chunk) - Factors that could cause actual results to differ are described in the Company's Annual Report on Form 10-K and other SEC filings[27](index=27&type=chunk) - Forward-looking statements are management's beliefs, not guarantees of future performance, and the Company undertakes no obligation to update them[28](index=28&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) Presents the company's unaudited consolidated balance sheets and income statements for reported periods [Consolidated Statements of Financial Condition (Balance Sheet)](index=8&type=section&id=10.1%20Consolidated%20Statements%20of%20Financial%20Condition) This section presents the unaudited consolidated balance sheet for Catalyst Bancorp, Inc., detailing assets, liabilities, and equity across recent quarters Consolidated Balance Sheet | Metric ($ thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 6/30/2024 | | :--------------------------- | :-------- | :-------- | :--------- | :-------- | | Total Assets | 273,785 | 271,648 | 276,697 | 295,333 | | Total Liabilities | 192,986 | 191,057 | 196,493 | 214,320 | | Total Shareholders' Equity | 80,799 | 80,591 | 80,204 | 81,013 | | Loans receivable, net | 165,138 | 163,577 | 164,554 | 151,051 | | Total deposits | 182,211 | 180,598 | 185,674 | 180,065 | [Consolidated Statements of Income (Income Statement)](index=9&type=section&id=10.2%20Consolidated%20Statements%20of%20Income) This section provides the unaudited consolidated income statements for Catalyst Bancorp, Inc., detailing revenues, expenses, and net income for recent periods Consolidated Income Statement | Metric ($ thousands) | 3 Months Ended 6/30/2025 | 3 Months Ended 3/31/2025 | 3 Months Ended 6/30/2024 | 6 Months Ended 6/30/2025 | 6 Months Ended 6/30/2024 | | :--------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Total interest income | 3,461 | 3,374 | 3,525 | 6,835 | 6,680 | | Total interest expense | 993 | 1,009 | 1,077 | 2,002 | 2,139 | | Net interest income | 2,468 | 2,365 | 2,448 | 4,833 | 4,541 | | Provision for credit losses | - | - | 99 | - | 194 | | Total non-interest income (loss) | 344 | 553 | 366 | 897 | (4,797) | | Total non-interest expense | 2,178 | 2,198 | 2,068 | 4,376 | 4,859 | | Income tax expense (benefit) | 113 | 134 | 120 | 247 | (1,147) | | Net Income (Loss) | 521 | 586 | 527 | 1,107 | (4,162) | | Basic EPS | $0.14 | $0.16 | $0.13 | $0.30 | ($1.03) | | Diluted EPS | $0.14 | $0.16 | $0.13 | $0.30 | ($1.03) | [Selected Financial Data and Ratios](index=10&type=section&id=Selected%20Financial%20Data%20and%20Ratios) Provides key financial data, average balance sheet figures, and performance ratios for analysis [Earnings Data](index=10&type=section&id=11.1%20Earnings%20Data) This section summarizes key earnings data, including trends in interest income, expense, net interest income, and net income over recent periods Earnings Performance Data | Metric ($ thousands) | 3 Months Ended 6/30/2025 | 3 Months Ended 3/31/2025 | 3 Months Ended 6/30/2024 | 6 Months Ended 6/30/2025 | 6 Months Ended 6/30/2024 | | :--------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Total interest income | 3,461 | 3,374 | 3,525 | 6,835 | 6,680 | | Total interest expense | 993 | 1,009 | 1,077 | 2,002 | 2,139 | | Net interest income | 2,468 | 2,365 | 2,448 | 4,833 | 4,541 | | Provision for credit losses | - | - | 99 | - | 194 | | Total non-interest income (loss) | 344 | 553 | 366 | 897 | (4,797) | | Total non-interest expense | 2,178 | 2,198 | 2,068 | 4,376 | 4,859 | | Income tax expense (benefit) | 113 | 134 | 120 | 247 | (1,147) | | Net income (loss) | 521 | 586 | 527 | 1,107 | (4,162) | [Average Balance Sheet Data](index=10&type=section&id=11.2%20Average%20Balance%20Sheet%20Data) This section provides average balance sheet figures, offering insights into the average levels of key assets and liabilities over reported periods Average Balance Sheet Figures | Metric ($ thousands) | 3 Months Ended 6/30/2025 | 3 Months Ended 3/31/2025 | 3 Months Ended 6/30/2024 | 6 Months Ended 6/30/2025 | 6 Months Ended 6/30/2024 | | :--------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Total loans | 167,627 | 166,145 | 150,257 | 166,891 | 147,342 |\ | Total interest-earning assets | 249,137 | 246,690 | 264,776 | 247,920 | 267,306 |\ | Total assets | 270,788 | 268,232 | 285,773 | 269,517 | 286,240 |\ | Total interest-bearing deposits | 149,106 | 149,979 | 143,611 | 149,540 | 144,906 |\ | Total interest-bearing liabilities | 158,725 | 159,552 | 173,079 | 159,136 | 173,636 |\ | Total deposits | 179,426 | 177,106 | 173,326 | 178,272 | 173,990 |\ | Total shareholders' equity | 80,611 | 80,426 | 80,965 | 80,519 | 81,816 | [Key Financial Ratios](index=10&type=section&id=11.3%20Key%20Financial%20Ratios) This section presents key financial performance and capital adequacy ratios, including profitability, efficiency, and capital levels for reported periods Key Financial Performance Ratios | Metric | 3 Months Ended 6/30/2025 | 3 Months Ended 3/31/2025 | 3 Months Ended 6/30/2024 | 6 Months Ended 6/30/2025 | 6 Months Ended 6/30/2024 | | :--------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Return on average assets | 0.77% | 0.89% | 0.74% | 0.83% | (2.92)% |\ | Return on average equity | 2.59% | 2.96% | 2.62% | 2.77% | (10.23)% |\ | Efficiency ratio | 77.46% | 75.31% | 73.47% | 76.37% | (1,901.18)% |\ | Net interest margin (TE) | 3.98% | 3.89% | 3.72% | 3.93% | 3.42% |\ | Average equity to average assets | 29.77% | 29.98% | 28.33% | 29.88% | 28.58% |\ | Common equity Tier 1 capital ratio | 43.72% | 46.95% | 49.09% | N/A | N/A |\ | Tier 1 leverage capital ratio | 27.56% | 29.45% | 26.88% | N/A | N/A |\ | Total risk-based capital ratio | 44.98% | 48.20% | 50.34% | N/A | N/A | - Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change[34](index=34&type=chunk) [Allowance for Credit Losses Details](index=11&type=section&id=11.4%20Allowance%20for%20Credit%20Losses%20Details) This section details movements in the allowance for credit losses (ACL) for loans and unfunded commitments, including balances, provisions, charge-offs, and recoveries Loans: Details | Metric ($ thousands) | 3 Months Ended 6/30/2025 | 3 Months Ended 3/31/2025 | 3 Months Ended 6/30/2024 | 6 Months Ended 6/30/2025 | 6 Months Ended 6/30/2024 | | :--------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | **Loans:** | | | | | | | Beginning balance | 2,500 | 2,522 | 2,068 | 2,522 | 2,124 | | Provision for credit losses | (27) | 17 | 185 | (10) | 227 | | Charge-offs | (63) | (53) | (57) | (116) | (180) | | Recoveries | 21 | 14 | 19 | 35 | 44 | | Net (charge-offs) recoveries | (42) | (39) | (38) | (81) | (136) | | Ending balance | 2,431 | 2,500 | 2,215 | 2,431 | 2,215 | | **Unfunded commitments:** | | | | | | | Beginning balance | 104 | 121 | 310 | 121 | 257 | | Provision for (reversal of) credit losses on unfunded commitments | 27 | (17) | (86) | 10 | (33) | | Ending balance | 131 | 104 | 224 | 131 | 224 | | Total provision for credit losses | - | - | 99 | - | 194 | [Credit Quality Metrics](index=11&type=section&id=11.5%20Credit%20Quality%20Metrics) This section provides detailed credit quality metrics, including non-accruing, past due, and non-performing loans, foreclosed assets, and their ratios to total loans and assets Non-accruing loans Summary | Metric ($ thousands) | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :----------------------------------- | :-------- | :-------- | :-------- | | Non-accruing loans | 1,455 | 1,554 | 1,560 | | Accruing loans 90 days or more past due | 215 | 91 | 40 | | Total non-performing loans | 1,670 | 1,645 | 1,600 | | Foreclosed assets | 80 | 77 | 104 | | Total non-performing assets | 1,750 | 1,722 | 1,704 | | Total non-performing loans to total loans | 1.00% | 0.99% | 1.04% | | Total non-performing assets to total assets | 0.64% | 0.63% | 0.58% | - Credit quality data and ratios are as of the end of each period presented[36](index=36&type=chunk) ```

Core Insights - Catalyst Bancorp, Inc. reported a net income of $521,000 for Q2 2025, a decrease from $586,000 in Q1 2025 [1][28] - The company experienced growth in both loans and deposits during the quarter, indicating a positive trend in business operations [2] Financial Performance - Total loans reached $167.6 million as of June 30, 2025, reflecting an increase of $1.5 million, or less than 1%, from March 31, 2025 [2][3] - The composition of the loan portfolio showed mixed results, with real estate loans totaling $140.3 million, up $1.6 million, while construction and land loans decreased by $11.4 million, or 36% [3][5] - Non-interest income for Q2 2025 was $344,000, down $209,000, or 38%, compared to Q1 2025, primarily due to the absence of insurance proceeds received in the previous quarter [19] Credit Quality - Non-performing assets totaled $1.8 million at June 30, 2025, compared to $1.7 million at March 31, 2025, with a ratio of NPAs to total assets at 0.64% [7][8] - The allowance for credit losses on loans was $2.4 million, or 1.45% of total loans, down from $2.5 million, or 1.51%, in the previous quarter [8] Deposits - Total deposits increased to $182.2 million at June 30, 2025, up $1.6 million, or 1%, from March 31, 2025 [9][10] - The ratio of total loans to total deposits remained stable at 92% for both periods [10] Capital and Share Repurchases - Consolidated shareholders' equity was $80.8 million, or 29.5% of total assets, as of June 30, 2025 [12] - The company repurchased 62,385 shares at an average cost of $11.91 during Q2 2025, totaling 1,147,184 shares repurchased since the initiation of the share repurchase plan [13] Net Interest Income - Net interest income for Q2 2025 was $2.5 million, an increase of $103,000, or 4%, from Q1 2025 [15] - The net interest margin improved to 3.98%, up nine basis points from the previous quarter [14] Selected Ratios - Return on average assets was 0.77% for Q2 2025, while return on average equity was 2.59% [30] - The efficiency ratio was reported at 77.46% for the quarter [30]

Financial Performance - Net income for the three months ended March 31, 2025, was $586,000, compared to a net loss of $4.7 million for the same period in 2024[108]. - Non-interest income totaled $553,000 for the three months ended March 31, 2025, up from a net loss of $5.2 million for the same period in 2024[147]. - The company reported an income tax expense of $134,000 for the three months ended March 31, 2025, compared to an income tax benefit of $1.3 million for the same period in 2024[152]. Asset and Liability Management - Total assets decreased by $5.0 million, or 1.8%, to $271.6 million at March 31, 2025, from $276.7 million at December 31, 2024[108]. - Total deposits decreased by $5.1 million, or 2.7%, to $180.6 million at March 31, 2025[108]. - Total uninsured deposits were approximately $44.3 million at March 31, 2025, down from $53.7 million at December 31, 2024[128]. - The company experienced a net outflow of $5.1 million due to a decrease in deposits during the three months ended March 31, 2025[159]. Loan Portfolio - Loans amounted to $166.1 million at March 31, 2025, down $999,000, or 0.6%, from December 31, 2024[108]. - Total loans at the end of the period were $166,077 thousand, a decrease from $167,076 thousand at December 31, 2024[118]. - The allowance for credit losses on loans was $2,500 thousand, representing 1.51% of total loans, up from 1.44% at the end of 2024[116]. - Total non-performing loans increased slightly to $1,645 thousand, compared to $1,631 thousand at December 31, 2024[120]. - Multi-family residential loans increased by $1,266 thousand, or 12.6%, reaching $11,297 thousand compared to $10,031 thousand at the end of 2024[115]. Income and Expenses - Net interest income increased by $272,000, or 13.0%, to $2.4 million, with a net interest margin of 3.89%, up 77 basis points compared to the same period in 2024[108]. - Total interest income rose by $219,000, or 6.9%, to $3.4 million for the three months ended March 31, 2025[139]. - Non-interest expense decreased by $593,000, or 21.2%, to $2.2 million compared to the three months ended March 31, 2024[108]. Equity and Shareholder Activity - Total shareholders' equity increased by $387,000, or 0.5%, to $80.6 million at March 31, 2025[108]. - Shareholders' equity increased to $80.6 million, or 29.7% of total assets, up from $80.2 million, or 29.0% at December 31, 2024[130]. - The company repurchased 72,949 shares at an average cost of $11.86 per share during the three months ended March 31, 2025[131]. Liquidity and Funding - As of March 31, 2025, the total unused and available liquidity sources amounted to $79.97 million, including $45.645 million from FHLB advances and $17.8 million from a line of credit with a primary correspondent bank[156]. - The available borrowing capacity with the FHLB is secured through a blanket floating lien on real estate loans[156]. - The company anticipates retaining the majority of maturing time deposits, but may utilize secondary funding sources if a substantial portion is not retained[162].

Financial Performance - Catalyst Bancorp, Inc. reported net income of $586,000 for Q1 2025, a decrease of $40,000 or 6% from Q4 2024's net income of $626,000[1] - Net interest income for Q1 2025 was $2.4 million, a decrease of $107,000 or 4% compared to Q4 2024[15] - Net interest income for Q1 2025 was $2,365,000, compared to $2,472,000 in Q4 2024, reflecting a decrease of 4.3%[31] - Total interest income for Q1 2025 was $3,374,000, down from $3,511,000 in the previous quarter, a decline of 3.9%[31] - Non-interest income increased to $553,000, up $216,000 or 64% compared to Q4 2024, including $216,000 in insurance proceeds[19] - Total non-interest income for Q1 2025 was $553,000, significantly improved from a loss of $5,163,000 in Q1 2024[31] - The efficiency ratio for Q1 2025 was 75.31%, compared to 72.54% in the previous quarter, indicating a decline in operational efficiency[33] Asset and Loan Management - Total loans decreased to $166.1 million at March 31, 2025, down $1.0 million or less than 1% from December 31, 2024[3] - The allowance for credit losses on loans remained at $2.5 million, or 1.51% of total loans, with net loan charge-offs of $39,000 in Q1 2025[7] - Total non-performing loans increased slightly to $1,645,000, representing 0.99% of total loans, up from 0.98% in the previous quarter[36] - The total non-performing loans to total loans ratio improved slightly from 1.03% a year ago to 0.99% this quarter[36] Deposits and Assets - Total deposits were $180.6 million at March 31, 2025, down $5.1 million or 3% from December 31, 2024[9] - Total deposits as of March 31, 2025, were $180.6 million, down from $185.7 million at the end of the previous quarter, a decrease of 3.0%[28] - Total assets as of March 31, 2025, were $271.6 million, a decrease from $276.7 million at December 31, 2024[28] Credit Losses and Provisions - The provision for credit losses was $0 for Q1 2025, compared to $95,000 in Q1 2024[31] - The provision for credit losses on unfunded commitments was a reversal of $17,000, compared to a provision of $110,000 in the prior quarter[36] - The total provision for credit losses for the period was $0, compared to $95,000 in the same period last year[36] Shareholder Activities - The company repurchased 72,949 shares at an average cost of $11.86 per share during Q1 2025, totaling 1,084,799 shares repurchased since January 2023[13] Expenses - Non-interest expense totaled $2.2 million, an increase of $160,000 or 8% from Q4 2024, primarily due to net losses on foreclosed properties[20] - Advertising and marketing expense increased to $39,000 for Q1 2025, up $22,000 or 129% from the prior quarter due to heightened business development activities[21] Non-Performing Assets - Non-performing assets totaled $1.7 million, down $103,000 or 6% from $1.8 million at December 31, 2024, with a ratio of NPAs to total assets at 0.63%[6] - Total non-performing assets decreased to $1,722,000, which is 0.63% of total assets, down from 0.66% in the previous quarter[36] Capital Ratios - Common equity Tier 1 capital ratio was 46.95% as of March 31, 2025, up from 45.81% at the end of the previous quarter[33]

Core Insights - Loan growth was muted at the beginning of 2025 due to market turbulence, leading to project delays by customers [1] - The company received the 'Best Community Banks to Work For' Award at the ICBA's Live Conference in March 2025 [1] Loan Portfolio - Total loans amounted to $166.1 million as of March 31, 2025, a decrease of $1.0 million, or less than 1%, from December 31, 2024 [1][2] - Real estate loans totaled $138.7 million, with one- to four-family residential loans increasing by $928, or 1%, while commercial real estate loans remained stable [2] - Other loans decreased by $979, or 3%, primarily due to a decline in commercial and industrial loans [2] Credit Quality - Non-performing assets (NPAs) were $1.7 million, down $103,000, or 6%, from $1.8 million at the end of 2024, with NPAs to total assets ratio at 0.63% [5] - Non-performing loans (NPLs) comprised 0.99% of total loans, with 98% of NPLs being one- to four-family residential mortgage loans [5] Deposits - Total deposits were $180.6 million, down $5.1 million, or 3%, from December 31, 2024, with fluctuations mainly due to public funds [7][8] - Non-interest-bearing demand deposits decreased by 8%, while savings deposits increased by 13% [8] Capital and Share Repurchases - Consolidated shareholders' equity was $80.6 million, or 29.7% of total assets, as of March 31, 2025 [10] - The company repurchased 72,949 shares at an average cost of $11.86 during the first quarter of 2025, totaling 1,084,799 shares repurchased since January 2023 [11] Net Interest Income - The net interest margin for the first quarter of 2025 was 3.89%, down three basis points from the previous quarter [12] - Net interest income was $2.4 million, a decrease of $107,000, or 4%, compared to the fourth quarter of 2024 [13] Non-Interest Income and Expenses - Non-interest income totaled $553,000, up $216,000, or 64%, compared to the previous quarter, including insurance proceeds for foreclosed properties [18] - Non-interest expense was $2.2 million, an increase of $160,000, or 8%, primarily due to foreclosed assets expense [19][20] Financial Performance - Net income for the first quarter of 2025 was $586,000, compared to $626,000 in the previous quarter [27] - The efficiency ratio was 75.31%, indicating the company's operational efficiency [28]

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].