Catalyst Bancorp(CLST) - 2024 Q3 - Quarterly Results

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].