Catalyst Bancorp(CLST) - 2025 Q2 - Quarterly Report

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]