Catalyst Bancorp(US:CLST)2026-01-29 21:43Financial Performance - For Q4 2025, Catalyst Bancorp reported net income of $456,000, or $0.13 per diluted share, compared to $489,000, or $0.13 per diluted share in Q3 2025[1]. - Net income for the year ended December 31, 2025, was $2,052,000, a significant recovery from a net loss of $3,089,000 in the previous year[39]. - The return on average assets for Q4 2025 was 0.65%, down from 0.91% in Q4 2024, indicating a decline in profitability relative to assets[39]. Loan and Asset Management - Total loans increased to $170.2 million at December 31, 2025, up $5.4 million, or 3%, from $164.8 million at September 30, 2025[3]. - The commercial and industrial loans segment saw significant growth, increasing by $5.5 million, or 22%, primarily driven by the oilfield services sector[4]. - Total loans as of December 31, 2025, were $167,335,000, a slight increase from $167,187,000 in the previous year[39]. - Non-performing assets rose to $2.7 million, representing 0.95% of total assets, up from $1.9 million, or 0.67%, at the end of Q3 2025[7]. - The allowance for credit losses on loans was $2.4 million, or 1.39% of total loans, compared to 1.45% in the previous quarter[8]. Deposits and Funding - Total deposits decreased by $1.1 million, or 1%, to $185.3 million at December 31, 2025, with a loan-to-deposit ratio of 92%[10]. - Total deposits amounted to $185,274 thousand, with non-interest-bearing deposits at $29,991 thousand and interest-bearing deposits at $155,283 thousand[35]. - Total deposits increased to $181,537,000 as of December 31, 2025, compared to $170,991,000 in the previous year, reflecting a growth of 6.67%[39]. Interest Income and Margin - The net interest margin for Q4 2025 was 3.91%, up three basis points from the prior quarter, with net interest income rising by $57,000, or 2%[18][19]. - Total interest income for Q4 2025 was $3,548,000, an increase from $3,511,000 in Q4 2024, representing a year-over-year growth of 1.05%[39]. - Net interest income after provision for credit losses for Q4 2025 was $2,411,000, compared to $2,472,000 in Q4 2024, reflecting a decrease of 2.47%[39]. - Total interest-earning assets increased to $255,254 thousand with a net interest income of $2,507 thousand, resulting in a net interest margin of 3.91% for the fourth quarter of 2025[1][2]. Non-Interest Income and Expenses - Non-interest income for the fourth quarter of 2025 totaled $362,000, up $47,000 or 15% compared to the third quarter of 2025[3]. - Bank-owned life insurance income increased by $11,000 or 9% for the fourth quarter of 2025 compared to the prior quarter[4]. - Non-interest expense for the fourth quarter of 2025 was $2.2 million, reflecting a $20,000 or 1% increase from the previous quarter[5]. - Salaries and employee benefits expense rose to $1.3 million, an increase of $22,000 or 2% due to new hires and annual raises[6]. - Total non-interest expense for Q4 2025 was $2,222,000, slightly higher than $2,038,000 in Q4 2024, marking an increase of 9.05%[39]. Credit Loss Provisions - The provision for credit losses was $96,000 in Q4 2025, driven by increased construction loan commitments and overall loan growth[8]. - The provision for credit losses for Q4 2025 was $96,000, compared to a reversal of $36,000 in Q3 2025, indicating a shift towards increased provisions[41]. - The allowance for credit losses was $2,367 thousand, slightly improved from $2,397 thousand in the previous quarter[35]. Shareholder Equity - The company reported a total shareholders' equity of $81,725 thousand as of December 31, 2025, compared to $81,585 thousand at September 30, 2025[35]. Efficiency and Cost Management - The efficiency ratio for Q4 2025 was 77.40%, an improvement from 79.67% in Q3 2025, suggesting better cost management[39].