Loan Portfolio - As of December 31, 2023, Catalyst Bancorp's total loan portfolio included $83.6 million in single-family residential mortgage loans, representing 57.7% of the total[24] - Total loans for one- to four-family residential properties amounted to $80,795,000 in 2023, a decrease from $83,623,000 in 2022, reflecting a decline of approximately 3.3%[40] - The commercial real estate loans totaled $21,478,000 in 2023, up from $19,984,000 in 2022, indicating an increase of about 7.5%[40] - As of December 31, 2023, commercial real estate and multi-family residential loans represented 17.1% of the total loan portfolio, amounting to $24,900,000[44] - The largest segment of the Company's loan portfolio consists of one- to four-family residential real estate loans, primarily secured by properties in rural Acadiana[180] - The commercial real estate loan portfolio amounted to $21.5 million, or 14.8% of the total loan portfolio, as of December 31, 2023[117] - Construction and land loans amounted to $13.9 million, or 9.6% of total loans outstanding, more than doubling since December 31, 2022[53] - Commercial and industrial loans totaled $20.0 million, representing 13.8% of the total loan portfolio as of December 31, 2023[58] - Consumer loans reached $2.6 million, accounting for 1.8% of the total loan portfolio as of December 31, 2023[63] - Loans classified as "substandard" totaled $3.3 million as of December 31, 2023, with "special mention" loans at $212,000[72] Financial Performance - Net income available to common shareholders for the year ended December 31, 2023, was $602,000, compared to $180,000 for the year ended December 31, 2022, representing a significant increase of 233.3%[52] - Basic and diluted earnings per common share for the year ended December 31, 2023, were both $0.14, up from $0.04 in the previous year, marking a 250% increase[52] - The total charge-offs for the year 2023 were $6,000, compared to $7,000 in 2022, showing a reduction of approximately 14.3%[41] - The company reported recoveries of $119,000 in 2023, slightly down from $123,000 in 2022, reflecting a decrease of about 3.2%[41] - The provision for credit losses for the year ended December 31, 2023, totaled $128,000, compared to a reversal of $375,000 in 2022[77] Capital and Regulatory Compliance - The Bank's Common Equity Tier 1 Capital ratio was 52.34% as of December 31, 2023, significantly above the required minimum of 6.5%[111] - Catalyst Bank's capital exceeded all applicable regulatory requirements as of December 31, 2023, including a common equity Tier 1 capital ratio of 4.5%[143] - Federal regulations require a capital conservation buffer of 2.5% of common equity Tier 1 capital to risk-weighted assets for capital distributions[145] - The company was in compliance with the loans-to-one borrower limitations as of December 31, 2023[148] Deposits and Borrowings - Total deposits as of December 31, 2023, amounted to $165,622,000, a slight increase from $165,094,000 in 2022[93] - Non-interest-bearing demand deposits decreased to $28,183,000 (17.0%) in 2023 from $33,657,000 (20.4%) in 2022[93] - The estimated amount of total uninsured deposits was $44.6 million at December 31, 2023, compared to $43.4 million in 2022[94] - As of December 31, 2023, the Company had total borrowings of $19.4 million, an increase from $9.2 million in 2022[97] - The Company had $48.5 million in available borrowing capacity with the FHLB as of December 31, 2023, compared to $34.2 million in 2022[100] Asset Management - The total assets of the company as of December 31, 2023, amounted to $84,734,000, down from $88,526,000 in 2022, indicating a decrease of about 4.3%[195] - The company's retained earnings increased to $53,045,000 in 2023 from $52,778,000 in 2022, reflecting a growth of approximately 0.5%[195] - The fair value of loans receivable, net, was reported at $132,742,000 as of December 31, 2023, down from $142,796,000 in 2022, a decrease of approximately 7.1%[192] - The total carrying amount of financial assets as of December 31, 2023 is $131,800,000, with a fair value of $121,208,000[213] Staffing and Operations - The company employs only officers of the Bank and may hire additional staff as business expands[18] - At December 31, 2023, the company had 48 full-time equivalent employees, with plans to assess management and staffing needs for future growth[127][128] Regulatory and Compliance Issues - The company is subject to significant anti-money laundering and anti-terrorism laws, which could impact its business activities[132] - Catalyst Bank received an "outstanding" rating under the Community Reinvestment Act in its latest federal examination[153] - The revised CRA regulations will take effect on January 1, 2026, with new data reporting requirements starting January 1, 2027, although the impact on the Bank has not yet been determined[153]
Catalyst Bancorp(CLST) - 2023 Q4 - Annual Report