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].
Catalyst Bancorp(CLST) - 2021 Q3 - Quarterly Report