Catalyst Bancorp(CLST) - 2025 Q3 - Quarterly Report

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].