Prnewswire·2026-01-29 12:00Core Viewpoint - Catalyst Bancorp, Inc. reported a net income of $456,000 for Q4 2025, a slight decrease from $489,000 in Q3 2025, but a significant recovery from a net loss of $3.1 million in 2024, indicating a positive trend in financial performance [1][35]. Financial Performance - The company achieved a net income of $2.1 million for the year ended December 31, 2025, compared to a net loss of $3.1 million for the previous year [1]. - The diluted earnings per share (EPS) for Q4 2025 remained stable at $0.13, while the annual diluted EPS for 2025 was $0.56 [1][35]. Loan Growth - Total loans increased to $170.2 million as of December 31, 2025, reflecting a growth of $5.4 million, or 3%, from the previous quarter [2][3]. - The composition of the loan portfolio showed a rise in one- to four-family residential loans by $1.75 million, while commercial real estate loans decreased by $807,000 [3][5]. Credit Quality - Non-performing assets (NPAs) rose to $2.7 million at the end of Q4 2025, up from $1.9 million in Q3 2025, primarily due to an increase in non-accruing residential mortgage loans [7]. - The allowance for credit losses on loans was $2.4 million, representing 1.39% of total loans, slightly down from 1.45% in the previous quarter [8]. Investment Securities - Total investment securities amounted to $65.4 million, accounting for 23% of total assets, which is an increase of $5.6 million, or 9%, from the previous quarter [9]. Deposits - Total deposits decreased by $1.1 million, or 1%, to $185.3 million as of December 31, 2025, although the average deposits for Q4 2025 increased to $181.5 million [10][12]. - Non-interest-bearing demand deposits rose by $2.4 million, or 9%, primarily due to an increase in commercial deposits [11]. Capital Management - The company repurchased 54,693 shares of common stock at an average cost of $14.76 during Q4 2025, compared to 13,212 shares at $12.93 in Q3 2025 [15]. - As of December 31, 2025, consolidated shareholders' equity was $81.7 million, representing 28.9% of total assets [14]. Net Interest Income - The net interest margin for Q4 2025 was 3.91%, a slight increase from the previous quarter [17]. - Net interest income for Q4 2025 was $2.5 million, up $57,000, or 2%, compared to Q3 2025 [18]. Non-Interest Income and Expenses - Non-interest income for Q4 2025 totaled $362,000, an increase of $47,000, or 15%, from the previous quarter [23]. - Non-interest expenses rose to $2.2 million, up $20,000, or 1%, compared to Q3 2025, with salaries and employee benefits being the primary contributor to the increase [25][26].