Loan Portfolio - As of December 31, 2023, Catalyst Bancorp's total loan portfolio included $83.6 million in single-family residential mortgage loans, representing 57.7% of the total[24] - Total loans for one- to four-family residential properties amounted to $80,795,000 in 2023, a decrease from $83,623,000 in 2022, reflecting a decline of approximately 3.3%[40] - The commercial real estate loans totaled $21,478,000 in 2023, up from $19,984,000 in 2022, indicating an increase of about 7.5%[40] - As of December 31, 2023, commercial real estate and multi-family residential loans represented 17.1% of the total loan portfolio, amounting to $24,900,000[44] - The largest segment of the Company's loan portfolio consists of one- to four-family residential real estate loans, primarily secured by properties in rural Acadiana[180] - The commercial real estate loan portfolio amounted to $21.5 million, or 14.8% of the total loan portfolio, as of December 31, 2023[117] - Construction and land loans amounted to $13.9 million, or 9.6% of total loans outstanding, more than doubling since December 31, 2022[53] - Commercial and industrial loans totaled $20.0 million, representing 13.8% of the total loan portfolio as of December 31, 2023[58] - Consumer loans reached $2.6 million, accounting for 1.8% of the total loan portfolio as of December 31, 2023[63] - Loans classified as "substandard" totaled $3.3 million as of December 31, 2023, with "special mention" loans at $212,000[72] Financial Performance - Net income available to common shareholders for the year ended December 31, 2023, was $602,000, compared to $180,000 for the year ended December 31, 2022, representing a significant increase of 233.3%[52] - Basic and diluted earnings per common share for the year ended December 31, 2023, were both $0.14, up from $0.04 in the previous year, marking a 250% increase[52] - The total charge-offs for the year 2023 were $6,000, compared to $7,000 in 2022, showing a reduction of approximately 14.3%[41] - The company reported recoveries of $119,000 in 2023, slightly down from $123,000 in 2022, reflecting a decrease of about 3.2%[41] - The provision for credit losses for the year ended December 31, 2023, totaled $128,000, compared to a reversal of $375,000 in 2022[77] Capital and Regulatory Compliance - The Bank's Common Equity Tier 1 Capital ratio was 52.34% as of December 31, 2023, significantly above the required minimum of 6.5%[111] - Catalyst Bank's capital exceeded all applicable regulatory requirements as of December 31, 2023, including a common equity Tier 1 capital ratio of 4.5%[143] - Federal regulations require a capital conservation buffer of 2.5% of common equity Tier 1 capital to risk-weighted assets for capital distributions[145] - The company was in compliance with the loans-to-one borrower limitations as of December 31, 2023[148] Deposits and Borrowings - Total deposits as of December 31, 2023, amounted to $165,622,000, a slight increase from $165,094,000 in 2022[93] - Non-interest-bearing demand deposits decreased to $28,183,000 (17.0%) in 2023 from $33,657,000 (20.4%) in 2022[93] - The estimated amount of total uninsured deposits was $44.6 million at December 31, 2023, compared to $43.4 million in 2022[94] - As of December 31, 2023, the Company had total borrowings of $19.4 million, an increase from $9.2 million in 2022[97] - The Company had $48.5 million in available borrowing capacity with the FHLB as of December 31, 2023, compared to $34.2 million in 2022[100] Asset Management - The total assets of the company as of December 31, 2023, amounted to $84,734,000, down from $88,526,000 in 2022, indicating a decrease of about 4.3%[195] - The company's retained earnings increased to $53,045,000 in 2023 from $52,778,000 in 2022, reflecting a growth of approximately 0.5%[195] - The fair value of loans receivable, net, was reported at $132,742,000 as of December 31, 2023, down from $142,796,000 in 2022, a decrease of approximately 7.1%[192] - The total carrying amount of financial assets as of December 31, 2023 is $131,800,000, with a fair value of $121,208,000[213] Staffing and Operations - The company employs only officers of the Bank and may hire additional staff as business expands[18] - At December 31, 2023, the company had 48 full-time equivalent employees, with plans to assess management and staffing needs for future growth[127][128] Regulatory and Compliance Issues - The company is subject to significant anti-money laundering and anti-terrorism laws, which could impact its business activities[132] - Catalyst Bank received an "outstanding" rating under the Community Reinvestment Act in its latest federal examination[153] - The revised CRA regulations will take effect on January 1, 2026, with new data reporting requirements starting January 1, 2027, although the impact on the Bank has not yet been determined[153]

Financial Performance - The company reported net income of $170,000 for the three months ended September 30, 2023, compared to $135,000 for the same period in 2022, representing a 25.9% increase [164]. - For the nine months ended September 30, 2023, net income was $282,000, significantly up from $9,000 in the same period of 2022 [164]. - Total interest income increased by $437,000, or 21.5%, to $2.5 million for the three months ended September 30, 2023, compared to the same period in 2022 [219]. - Net interest income was $2.0 million for the three months ended September 30, 2023, up $102,000, or 5.5%, from the same period in 2022 [223]. - Total interest income for the nine months ended September 30, 2023, increased by $1.1 million, or 19.5%, to $7.1 million compared to the same period in 2022 [232]. - Net interest income was $5.8 million for the nine months ended September 30, 2023, up $410,000, or 7.5%, from the same period in 2022 [236]. - Non-interest income totaled $306,000 for the three months ended September 30, 2023, up $10,000, or 3.4%, compared to $296,000 for the same period in 2022 [226]. - Non-interest income totaled $917,000 for the nine months ended September 30, 2023, up $45,000, or 5.2%, compared to $872,000 for the same period in 2022 [238]. Asset and Loan Management - As of September 30, 2023, total assets were $257.9 million, with total loans of $135.7 million and total deposits of $165.2 million [164]. - Total loans increased by $2.1 million, or 1.5%, to $135.7 million at September 30, 2023, compared to $133.6 million at December 31, 2022 [182]. - Total past due loans amounted to $2,638,000, with $1,473,000 past due 30-89 days and $127,000 past due over 90 days [85]. - Non-performing loans increased to $2.088 million at September 30, 2023, compared to $1.600 million at December 31, 2022 [193]. - Total non-accruing loans increased to $1,961,000 at September 30, 2023, up from $1,494,000 at December 31, 2022, representing a 31.1% increase [199]. - The allowance for loan losses increased to $2.0 million, or 1.50% of total loans, as of September 30, 2023, up from $1.8 million, or 1.35% of total loans, at December 31, 2022 [170]. - The total provision for credit losses on loans and unfunded commitments was zero for the first nine months of 2023 [187]. Deposits and Equity - Total deposits increased slightly by $126, or 0.1%, to $165.220 million at September 30, 2023, from $165.094 million at December 31, 2022 [198]. - Public fund deposits increased to $26.4 million, or 16.0% of total deposits, from $21.0 million, or 12.7% of total deposits, at December 31, 2022 [205]. - Shareholders' equity decreased to $82.2 million, or 31.9% of total assets, down from $88.5 million, or 33.6% of total assets, at December 31, 2022, a decline of 7.1% [208]. - Total uninsured deposits were approximately $45.2 million at September 30, 2023, compared to $43.4 million at December 31, 2022 [206]. Strategic Initiatives - The company’s business strategy has shifted to a relationship-based community bank model targeting small- to mid-sized businesses [163]. - The company aims to continue implementing its business strategies and capitalize on growth opportunities despite economic uncertainties [155]. - The company plans to focus on market expansion and new product development to enhance future performance [102]. Regulatory and Compliance - The Bank exceeded all regulatory capital requirements and was categorized as well-capitalized at September 30, 2023 [256]. - The company adopted ASC 326 on January 1, 2023, which changed the methodology for estimating credit losses on loans [169]. - Future changes in laws, regulations, or government policies may materially impact the company's financial condition and results of operations [165]. Investment and Securities - Net unrealized losses on available-for-sale securities totaled $12.8 million as of September 30, 2023, compared to $11.5 million at December 31, 2022 [174]. - Total investment securities decreased by $7.8 million, or 8.4%, to $85.3 million at September 30, 2023, from $93.1 million at December 31, 2022 [195]. - The fair value of available-for-sale securities decreased to $71,808,000 as of September 30, 2023, from $79,602,000 on December 31, 2022, a decline of about 10% [130].

ITEM 1. FINANCIAL STATEMENTS The accompanying Notes are an integral part of these financial statements. NOTE 1. BASIS OF PRESENTATION NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS Commercial real estate – This category generally consists of loans secured by retail and industrial use buildings, hotels, strip shopping centers and other properties used for commercial purposes. The performance of these loans may be adversely affected by, among other factors, conditions specific to the relevant industry, the real est ...

Title of each class Trading Symbol(s) Name of each exchange on which registered UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-40893 (Exact name of registrant as specified in its charter) Louisiana 86 ...

Financial Performance - Net income for the year ended December 31, 2022, was $180,000, a decrease from $1.9 million for the year ended December 31, 2021[171]. - Net income fell significantly from $1.92 million in 2021 to $0.18 million in 2022, representing a decrease of about 90.6%[218]. - Basic earnings per share dropped to $0.04 in 2022 from $0.39 in 2021, a decline of 89.7%[236]. - Non-interest income dropped from $2.63 million in 2021 to $1.17 million in 2022, a decline of about 55.5%[218]. - Non-interest income decreased significantly to $1,173,000 in 2022 from $2,626,000 in 2021, a decline of 55.3%[236]. - The efficiency ratio worsened to 102.55% in 2022 from 81.76% in 2021, indicating increased operational inefficiency[218]. - Net cash provided by operating activities decreased to $772,000 in 2022 from $3,428,000 in 2021, a reduction of 77.5%[240]. - Net income available to common shareholders decreased to $180,000 in 2022 from $1,915,000 in 2021[263]. Asset and Loan Composition - Total assets decreased by $22.3 million, or 7.8%, to $263.3 million as of December 31, 2022, compared to $285.6 million at the end of 2021[78]. - Total loans increased by $1.5 million, or 1.1%, to $133.6 million as of December 31, 2022, compared to $132.1 million in 2021[87]. - The loan portfolio composition shows that single-family residential loans accounted for $87.5 million, or 65.5% of total loans, while commercial and industrial loans increased by 65.3% to $13.8 million[87]. - The Bank's primary income sources are interest from loans and investment securities, with total real estate loans at $116.3 million, representing 87.0% of total loans[87]. - As of December 31, 2022, the total amount of loans due after December 31, 2023 is $125.166 million, with $43.805 million in fixed-rate loans and $81.361 million in floating or adjustable-rate loans[91]. - The allowance for loan losses totaled $1.8 million, or 1.35% of total loans, at December 31, 2022, down from $2.3 million, or 1.72% of total loans, at December 31, 2021[191]. - Non-accrual loans as a percentage of total loans outstanding rose to 1.12% in 2022 from 0.67% in 2021, reflecting a deterioration in asset quality[227]. Investment and Capital Management - The total investment securities portfolio at December 31, 2022, amounted to $93.1 million, representing 35.3% of total assets, with $64.2 million in pass-through mortgage-backed securities[103]. - The company had $79.6 million of investment securities classified as available for sale and $13.5 million classified as held to maturity as of December 31, 2022[115]. - The investment policy aims to manage interest rate sensitivity and maintain liquidity while generating favorable returns[102]. - The company has authority to invest in various securities, including mortgage-backed securities and U.S. Treasury obligations[101]. - Federal regulations require a common equity Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk-based assets ratio of 6.0%, and a total capital to risk-based assets ratio of 8.0%[205]. - Catalyst Bank met the criteria for being considered "well capitalized" as of December 31, 2022[214]. - Common equity Tier 1 capital ratio decreased from 63.51% in 2021 to 56.17% in 2022, indicating a decline in capital strength[227]. Operational Changes and Strategy - Catalyst Bancorp completed its initial public offering, issuing 5,290,000 shares for an aggregate of $52.9 million, with net proceeds of $50.8 million[65]. - The Bank's strategy includes increasing focus on small- to mid-sized businesses and enhancing commercial and multi-family residential real estate loans[72]. - The company aims to grow its loan portfolio with greater diversification, focusing on increasing commercial lending activities to enhance profitability and growth prospects[180]. - Catalyst Bank's business strategy includes expanding its franchise through potential acquisitions of other financial institutions in south Louisiana[180]. - The company has made several key hires, including a new Chief Financial Officer and a Chief Credit Officer, to support its business strategy[137]. - The company plans to repurchase up to 265,000 shares, approximately 5% of its outstanding common stock, under the 2023 Repurchase Plan[159]. Regulatory Compliance and Risk Management - At December 31, 2022, Catalyst Bank's capital exceeded all applicable regulatory requirements, ensuring compliance with capital adequacy guidelines[108]. - The bank received an "outstanding" Community Reinvestment Act rating in its most recent federal examination, reflecting its compliance with community credit needs[183]. - As of December 31, 2022, Catalyst Bank was in compliance with loans-to-one borrower limitations, which restrict loans to a single borrower to 15% of unimpaired capital and surplus[167]. - The bank's strategy for credit risk management emphasizes strong asset quality, experienced credit professionals, and active credit monitoring to reduce non-performing assets[180]. - The evaluation of the allowance for loan losses is sensitive to material variation and is based on estimates that may change as more information becomes available[191]. Market and Economic Conditions - Non-performing assets increased from December 31, 2021, to December 31, 2022, primarily due to a rise in non-accruing one- to four-family residential loans, influenced by reduced government stimulus and persistent inflation[100]. - The FDIC has increased deposit insurance assessment rates effective January 1, 2023, which may adversely affect operating expenses[221]. - The increase in unrealized losses on available-for-sale securities relates principally to increases in market rates of similar types of securities[207]. - The company expects a 10% to 20% increase in the allowance for loan losses due to the adoption of ASU 2016-13[259].

Financial Performance - The company reported a net income of $139,000 for the three months ended September 30, 2022, a decrease of 90% compared to $1.4 million for the same period in 2021[144]. - For the nine months ended September 30, 2022, net income was $26,000, down from $1.8 million in the same period in 2021[144]. - For the three months ended September 30, 2022, the company reported net income of $139,000, a decrease from $1.4 million for the same period in 2021[189]. - Non-interest income totaled $296,000 for the three months ended September 30, 2022, compared to $2.0 million for the same period in 2021[196]. - Non-interest income decreased by $1.5 million, or 63.7%, to $872,000 for the nine months ended September 30, 2022, largely due to the absence of a $1.8 million grant received in 2021[213]. Assets and Liabilities - As of September 30, 2022, total assets were $283.4 million, with total loans of $131.7 million and total deposits of $184.2 million[144]. - Total assets decreased by $1.9 million, or 0.7%, to $283.4 million at September 30, 2022, from $285.3 million at December 31, 2021[160]. - Total liabilities were $195.3 million, with shareholders' equity at $92.8 million as of September 30, 2022[182]. - The company had outstanding advances from the FHLB with a carrying value of $9.2 million and the capacity to borrow an additional $37.6 million as of September 30, 2022[226]. Loan and Deposit Information - Total loans receivable fell by $141,000, or 0.1%, to $131.7 million at September 30, 2022, compared to $131.8 million at December 31, 2021[161]. - Total deposits amounted to $184.2 million at September 30, 2022, an increase of $7.4 million, or 4.2%, compared to December 31, 2021[176]. - The allowance for loan losses totaled $1.8 million, or 1.37% of total loans, as of September 30, 2022, compared to $2.3 million, or 1.73% of total loans, at December 31, 2021[149]. - Total non-performing loans rose to $1.600 million at September 30, 2022, compared to $891,000 at December 31, 2021[170]. Investment Securities - Total investment securities amounted to $92.0 million at September 30, 2022, a decrease of $9.8 million, or 9.6%, from $101.8 million at December 31, 2021[172]. - The average amortized cost balance of the investment securities portfolio increased by $42.5 million, or 68.6%, for the three months ended September 30, 2022[192]. - The company purchased $10.9 million of investment securities during the nine months ended September 30, 2022, exceeding $8.5 million of maturities, calls, and principal repayments[172]. Expenses - Non-interest expense increased by $244,000, or 13.0%, to $2.1 million for the three months ended September 30, 2022[198]. - Non-interest expense increased by $1.1 million, or 20.1%, to $6.7 million for the nine months ended September 30, 2022, including $215,000 of rebranding-related expenses[216]. - The company expects non-interest expenses to continue to increase as operations expand, influenced by new stock benefit plans implemented in 2022[145]. Capital and Equity - Shareholders' equity decreased by $9.0 million, or 9.2%, to $89.3 million at September 30, 2022, primarily due to a $9.3 million increase in accumulated other comprehensive loss[179]. - The ratio of total shareholders' equity to total assets was 31.5% at September 30, 2022, down from 34.5% at December 31, 2021[179]. - As of September 30, 2022, the company exceeded all regulatory capital requirements, with Common Equity Tier 1 Capital at $77.997 million, representing a ratio of 57.84%[231]. Miscellaneous - The company funded 240 SBA PPP loans totaling $8.5 million during the COVID-19 pandemic, with all outstanding loans fully repaid by September 30, 2022[156]. - The company recorded net loan charge-offs of $97,000 during the nine months ended September 30, 2022[165]. - Recent accounting pronouncements may impact financial statements, as discussed in Note 3[237].

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock CLST Nasdaq Capital Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-40893 CATALYST B ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock CLST Nasdaq Capital Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-40893 CATALYST ...

Financial Performance - Net income for the year ended December 31, 2021, was $1,927,000, a significant recovery from a net loss of $703,000 in 2020[308]. - Total comprehensive income for 2021 was $1,137,000, compared to a loss of $584,000 in 2020, indicating a positive turnaround[311]. - Net income for the year ended December 31, 2021, was $1,927,000, compared to a net loss of $(703,000) for the year ended December 31, 2020, indicating a significant turnaround in profitability[317]. - Total income tax expense for 2021 was $487,000 compared to a benefit of $(474,000) in 2020, reflecting a significant change in tax position[426]. - Net cash provided by operating activities increased to $3,428,000 from $857,000, reflecting improved operational efficiency[317]. Assets and Liabilities - Total assets increased to $285,349,000 as of December 31, 2021, compared to $224,688,000 as of December 31, 2020, representing a growth of 27%[303]. - The total assets of Catalyst Bancorp, Inc. as of December 31, 2021, amounted to $98,346 thousand, with total shareholders' equity also at $98,346 thousand[462]. - The fair value of loans receivable, net, was $128,591 thousand as of December 31, 2021, down from $148,674 thousand in 2020, a decrease of 13%[459]. - The total liabilities for the company were not explicitly stated but are included in the total assets and shareholders' equity of $98,346 thousand[462]. Deposits and Loans - Total deposits rose to $176,795,000 in 2021, compared to $164,598,000 in 2020, an increase of 7.3%[303]. - The company experienced a net increase in deposits of $12,197,000, although this was lower than the previous year's increase of $22,969,000, suggesting a potential slowdown in deposit growth[317]. - Total real estate loans decreased from $140,565,000 in December 2020 to $119,083,000 in December 2021, representing a decline of approximately 15.3%[397]. - Net loans decreased from $148,778,000 in December 2020 to $129,566,000 in December 2021, a reduction of about 12.9%[397]. - The total loans receivable as of December 31, 2021, amounted to $131,842,000, down from $151,800,000 in December 2020, indicating a decrease of about 13.2%[401]. Income and Expenses - Total interest income decreased to $7,699,000 in 2021 from $8,490,000 in 2020, reflecting a decline of approximately 9.3%[308]. - Non-interest income increased to $2,626,000 in 2021, up from $966,000 in 2020, marking a growth of 171%[308]. - Total non-interest expense decreased slightly to $7,776,000 in 2021 from $7,943,000 in 2020, a reduction of about 2.1%[308]. - The company recorded charge-offs of $150,000 in 2021, down from $140,000 in 2020, indicating a slight increase in charge-offs year-over-year[399]. Equity and Capital - The company's retained earnings increased to $52,353,000 as of December 31, 2021, up from $50,426,000 in 2020, reflecting a growth of 3.8%[303]. - The Bank's Common Equity Tier 1 Capital was $77,819,000 with a ratio of 63.51% as of December 31, 2021, significantly above the required 6.5%[431]. - Total risk-based capital as of December 31, 2021, was $79,360,000, representing a ratio of 64.77%, exceeding the required 10%[431]. - The Company made matching contributions of $148,000 to the 401(k) plan in 2021, up from $112,000 in 2020[443]. Grants and Programs - During the year ended December 31, 2021, the Bank recognized a $1.8 million grant from the CDFI Rapid Response Program, which was deployed to capital through income recognition and qualifying loans[349]. - The Bank received a $203,000 grant from the CDFI Bank Enterprise Award Program in 2020, meeting conditions by providing loans and financial services to distressed communities[349]. Investment and Securities - Available-for-sale securities increased from $20,730 thousand in 2020 to $88,339 thousand in 2021, representing a growth of 326%[453]. - The amortized cost of available-for-sale securities was $89.203 million, with a fair value of $88.339 million as of December 31, 2021[385]. - Investment securities with a carrying amount of approximately $10.2 million were pledged to secure deposits as required by law at December 31, 2021[388]. Miscellaneous - The Conversion to stock-form ownership was completed on January 27, 2021, establishing Catalyst Bancorp as the parent company of the Bank[377]. - The Company has implemented a software application to assist in determining the allowance for loan losses under the CECL model, with an effective date delay until January 2023[373]. - The Employee Stock Ownership Plan (ESOP) was established in October 2021, with a loan of $4.2 million used to purchase 423,200 shares[444].

Financial Performance - Net income for the three months ended September 30, 2021, was $1.4 million, up $1.8 million from a net loss of $404,000 for the same period in 2020[108]. - Net income for the nine months ended September 30, 2021, was $1.8 million, a significant increase from $11,000 for the same period in 2020[154]. - Non-interest income increased by $1.9 million, or 340.7%, to $2.4 million for the nine months ended September 30, 2021, primarily due to the recognition of a $1.8 million CDFI grant[159]. - Total interest income decreased by $313,000, or 14.4%, to $1.9 million for the three months ended September 30, 2021, primarily due to a $300,000 decrease in interest income on loans[133]. - Total interest income decreased by $683,000, or 10.5%, to $5.8 million for the nine months ended September 30, 2021, primarily due to a $594,000 decrease in interest income on loans receivable[155]. - Net interest income was $1.7 million for the three months ended September 30, 2021, a decrease of $75,000, or 4.3%, compared to the same period in 2020[135]. - Net interest income totaled $5.2 million for the nine months ended September 30, 2021, an increase of $33,000, or 0.6%, compared to the same period in 2020[157]. Assets and Liabilities - Total assets increased by $86.9 million, or 38.7%, to $311.6 million at September 30, 2021, from $224.7 million at December 31, 2020[121]. - Cash and cash equivalents rose by $75.2 million, or 297.7%, to $100.4 million at September 30, 2021, compared to $25.2 million at December 31, 2020[122]. - Net loans receivable decreased by $14.7 million, or 9.9%, to $134.1 million at September 30, 2021, from $148.8 million at December 31, 2020[123]. - Total loans outstanding decreased to $136.72 million at September 30, 2021, from $151.8 million at December 31, 2020[130]. - The average balance of loans decreased by $20.3 million, or 12.6%, to $140.2 million for the nine months ended September 30, 2021[155]. - Total investment securities increased by $24.9 million, or 65.2%, to $63.2 million as of September 30, 2021, compared to $38.3 million at December 31, 2020[124]. Equity and Capital - The total equity of the company was $52.0 million at September 30, 2021[108]. - The ratio of total equity to total assets was 16.7% at September 30, 2021, with total equity increasing to $52.0 million[127]. - The company exceeded all regulatory capital requirements with a Tier 1 leverage capital level of $52.3 million, or 20.7% of adjusted total assets, well above the required level of $12.7 million, or 5.0%[170]. Deposits and Funding - Total deposits rose by $84.9 million, or 51.6%, to $249.5 million at September 30, 2021, primarily due to $72.9 million in cash from the initial public offering[125]. - The company issued 5,290,000 shares of common stock for an aggregate of $52.9 million in total offering proceeds during its initial public offering[107]. - Net cash provided by financing activities was $84.9 million for the nine months ended September 30, 2021, mainly due to $72.9 million in cash received from the initial public offering[168]. Expenses - The company expects non-interest expenses to increase as operations grow, including compensation expenses related to an employee stock ownership plan[110]. - Non-interest expense increased by $576,000, or 11.5%, to $5.6 million for the nine months ended September 30, 2021, compared to $5.0 million for the same period in 2020[160]. - Salaries and employee benefits expense increased by $499,000, or 17.6%, due to additional personnel employed during the nine months ended September 30, 2021, compared to the same period in 2020[162]. - Occupancy and equipment expenses rose by $108,000, or 22.0%, primarily reflecting costs related to an additional branch location opened in 2020[162]. - Legal, accounting, and consulting expenses increased by $90,000, or 54.5%, mainly due to software and professional services costs associated with operating as a public company[163]. - Income tax expense increased by $432,000 to $465,000 for the nine months ended September 30, 2021, compared to $33,000 for the same period in 2020, primarily due to increased taxable earnings[164]. Loan Losses and Provisions - The provision for loan losses recorded a reversal of $286,000 for the nine months ended September 30, 2021, compared to a provision of $665,000 for the same period in 2020[158]. - The ratio of the allowance for loan losses to total loans was 1.94% at September 30, 2021[158]. Non-Performing Assets - Total non-performing assets decreased to $1.828 million at September 30, 2021, down from $2.087 million at December 31, 2020[130].