8-K

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

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Washington, D.C. 20549

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FORM 8-K

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CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

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Date of Report (Date of earliest event reported)	January 27, 2022

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Catalyst Bancorp, Inc.

(Exact name of registrant as specified in its charter)

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Louisiana	001-40893	86-2411762
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
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235 N. Court Street, Opelousas, Louisiana	70570
(Address of principal executive offices)	(Zip Code)

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Registrant’s telephone number, including area code	(337) 948-3033

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Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

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☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br><br>​<br><br>​
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Title of each Class	Trading<br>Symbol(s)	Name of each exchange on which registered
Common Stock	CLST	Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

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​ ITEM 2.02 Results of Operations and Financial Condition

On January 27, 2022, the Registrant announced its results of operations for the quarter ended December 31, 2021. A copy of the related press release (the "Press Release") is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. The Press Release attached hereto is being furnished to the SEC and shall not be deemed "filed" for any purpose except as otherwise provided herein.

ITEM 9.01 Financial Statements and Exhibits

(a)****Not applicable.

(b)****Not applicable.

(c)****Not applicable.

(d)****Exhibits

The following exhibits are filed herewith.

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Exhibit Number	​	Description
99.1	​	Press Release, dated January 27, 2022
104	​	Cover Page Interactive Data File. Embedded within the Inline XBRL document.

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​ Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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​	​	​	CATALYST BANCORP, INC.
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Date:	January 27, 2022	​	By:	/s/ Joseph B. Zanco
​	​	​	​	Joseph B. Zanco
​	​	​	​	President and Chief Executive Officer

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For Immediate Release

Exhibit 99.1

For more information:

Joe Zanco, President and CEO

(337) 948-3033

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For Immediate Release

Release Date: January 27, 2022

Catalyst Bancorp, Inc. Announces 2021 Fourth Quarter Results

Opelousas, Louisiana – Catalyst Bancorp, Inc. (Nasdaq: “CLST”) (the “Company”), the parent company for St Landry Homestead Federal Savings Bank (the “Bank”) (www.stlandryhomestead.com), reported financial results for the fourth quarter of 2021. For the quarter, the Company reported net income of $83,000, compared to $1.4 million for the third quarter of 2021. For the year ended December 31, 2021, net income totaled $1.9 million, up $2.6 million, compared to the net loss reported for 2020. During the third quarter of 2021, the Company received and recognized into income a Community Development Financial Institution (“CDFI”) Rapid Response Program grant totaling $1.8 million.

“We had tremendous success in 2021, from completing our IPO to the addition of several outstanding bankers who have joined our team,” said Joe Zanco, President and Chief Executive Officer of the Company and the Bank.  “As we continue to position our company for growth, our investments in 2022 will be focused on our team, advancing our technology and re-branding the bank.”

Completion of Stock Offering

The Company completed its initial public offering (“IPO”) of stock in connection with the Bank’s conversion from the mutual to the stock form of organization on October 12, 2021. The Company issued a total of 5,290,000 shares of its common stock for an aggregate of $52,900,000 in total offering proceeds, including shares sold to the Company’s employee stock ownership plan (“ESOP”). The Company made a loan to the ESOP in the amount of $4.2 million, which the ESOP used to purchase 423,200 shares. The net proceeds of the IPO of $50.9 million are reflected in the Company’s shareholder’s equity at December 31, 2021. The Company’s common stock trades on the Nasdaq Capital Market under the symbol “CLST”.

Loans and Credit Quality

Loans receivable totaled $131.8 million at December 31, 2021, down $4.9 million, or 4%, from September 30, 2021. The decrease was primarily due to declines in commercial real estate loans (down $5.0 million, or 18%) and one- to four-family residential mortgage loans (down 1.3 million, or 1%), partially offset by an increase in commercial and industrial loans (up $2.4 million, or 40%).

The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated.

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(Dollars in thousands)	​	12/31/2021		​	9/30/2021		​	Increase (Decrease)
Real estate loans	​	​	​	​	​	​	​	​	​	​	​	​
One- to four-family residential	​	$	87,303	​	$	88,595	​	$	(1,292)	​	(1)	%
Commercial real estate	​	​	23,112	​	​	28,135	​	​	(5,023)	​	(18)	​
Construction and land	​	​	4,079	​	​	4,443	​	​	(364)	​	(8)	​
Multi-family residential	​	​	4,589	​	​	4,648	​	​	(59)	​	(1)	​
Total real estate loans	​	​	119,083	​	​	125,821	​	​	(6,738)	​	(5)	​
Other loans	​	​	​	​	​	​	​	​	​	​	​	​
Commercial and industrial	​	​	8,374	​	​	5,987	​	​	2,387	​	40	​
Consumer	​	​	4,385	​	​	4,912	​	​	(527)	​	(11)	​
Total other loans	​	​	12,759	​	​	10,899	​	​	1,860	​	17	​
Total loans	​	$	131,842	​	$	136,720	​	$	(4,878)	​	(4)	%

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Commercial real estate loans were down primarily due to the pay-off of a $4.3 million hotel relationship. Small Business Administration Paycheck Protection Program (“PPP”) loans, included in commercial and industrial loans, decreased $605,000, or 19%, from September 30, 2021.  At December 31, 2021, PPP loans totaled $2.6 million, net of deferred fees of $186,000.

Non-performing assets (“NPAs”) totaled $1.2 million at December 31, 2021, down $86,000, or 7%, compared to $1.3 million at September 30, 2021. The ratio of NPAs to total assets was 0.43% at December 31, 2021, compared to 0.42% at September 30, 2021. Nonperforming loans (“NPLs”) totaled $890,000 at December 31, 2021, down $27,000 or 3%, compared to September 30, 2021. The ratio of NPLs to total loans was 0.68% at December 31, 2021, compared to 0.67% at September 30, 2021.

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The following table summarizes the Company’s non-performing assets as of the dates indicated.

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(Dollars in thousands)	​	12/31/2021		​	9/30/2021		​	Increase (Decrease)
Non-accruing loans	​	$	890	​	$	752	​	$	138	​	18	%
Accruing loans 90 days or more past due	​	​	1	​	​	165	​	​	(164)	​	(99)	​
Total non-performing loans	​	​	891	​	​	917	​	​	(26)	​	(3)	​
Real estate owned	​	​	340	​	​	399	​	​	(59)	​	(15)	​
Total non-performing assets	​	$	1,231	​	$	1,316	​	$	(85)	​	(6)	%

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The Bank recorded net loan recoveries of $4,000 during the fourth quarter of 2021, compared to net loan charge-offs of $3,000 for the third quarter of 2021.

The ratio of the allowance for loan losses to total loans was 1.73% at December 31, 2021, compared to 1.94% at September 30, 2021.The Company recorded a reversal to the allowance for loan losses of $374,000 during the fourth quarter of 2021 as our assessment of the impact of the COVID-19 pandemic on our borrowers continued to improve. For the year ended December 31, 2021, the reversal to the allowance totaled $660,000.

Investment Securities

Total investment securities were $101.8 million at December 31, 2021, up $38.7 million, or 61%, from September 30, 2021. During the fourth quarter of 2021, the Company deployed $41.9 million of the proceeds from our IPO into the investment securities portfolio. For the fourth quarter of 2021, the average yield on the investment securities portfolio was 1.21%, up 11 basis points from the third quarter of 2021.

The following table sets forth the composition of the Company’s investment securities portfolio as of the dates indicated.

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(Dollars in thousands)	​	12/31/2021		​	9/30/2021		​	Increase (Decrease)
Available-for-sale, at fair value	​	​	​	​	​	​	​	​	​	​	​	​
Mortgage-backed securities	​	$	74,663	​	$	45,204	​	$	29,459	​	65	%
U. S. government and agency obligations	​	​	9,237	​	​	1,929	​	​	7,308	​	379	​
Municipal obligations	​	​	4,439	​	​	2,549	​	​	1,890	​	74	​
Total available-for-sale, at fair value	​	​	88,339	​	​	49,682	​	​	38,657	​	78	​
Held-to-maturity	​	​	​	​	​	​	​	​	​	​	​	​
U. S. government and agency obligations	​	​	13,019	​	​	13,023	​	​	(4)	​	-	​
Municipal obligations	​	​	479	​	​	481	​	​	(2)	​	-	​
Total held-to-maturity	​	​	13,498	​	​	13,504	​	​	(6)	​	-	​
Total investment securities	​	$	101,837	​	$	63,186	​	$	38,651	​	61	%

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Deposits

Total deposits were $176.8 million at December 31, 2021, down $72.7 million, or 29%, from September 30, 2021. During the third quarter of 2021, the Company received $72.9 million in deposits for subscriptions to purchase shares of the Company’s common stock in its IPO. On October 12, 2021, the Company completed its IPO and issued a total of 5,290,000 shares for net proceeds of $50.9 million. The net proceeds of the offering are reflected in the Company’s shareholder’s equity at December 31, 2021. The amount of deposits received for subscriptions to purchase shares in excess of the gross IPO proceeds were returned to the original subscribers.

The following table sets forth the composition of the Bank’s deposits as of the dates indicated.

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(Dollars in thousands)	​	12/31/2021		​	9/30/2021		​	Increase (Decrease)
Demand deposits	​	$	30,299	​	$	102,091	​	$	(71,792)	​	(70)	%
Savings	​	​	26,698	​	​	25,147	​	​	1,551	​	6	​
Money market	​	​	18,878	​	​	18,578	​	​	300	​	2	​
NOW	​	​	34,357	​	​	34,796	​	​	(439)	​	(1)	​
Certificates of deposit	​	​	66,563	​	​	68,848	​	​	(2,285)	​	(3)	​
Total deposits	​	$	176,795	​	$	249,460	​	$	(72,665)	​	(29)	%

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Net Interest Income

Net interest income for the fourth quarter of 2021 was $1.7 million, up $43,000, or 3%, from the third quarter of 2021 primarily due to an increase in interest income from investment securities (up $68,000, or 40%) and a decrease in interest expense on deposits (down $15,000, or 12%). The impact of the change in income from investment securities and interest expense on deposits was partially offset by a decrease in interest income on loans (down $50,000, or 3%).

The following table sets forth, for the periods indicated, the Bank’s total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. All average balances are based on daily balances.

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​	​	Three Months Ended
​	​	12/31/2021								​	9/30/2021
(Dollars in thousands)	​	Average Balance			Interest		​	Average Yield/ Rate			Average Balance			Interest		​	Average Yield/ Rate
INTEREST-EARNING ASSETS	​																	​
Loans receivable^(1)^	​	$	137,190	​	$	1,621	​	4.69	%	​	$	137,001	​	$	1,671	​	4.84	%
Investment securities	​	​	78,455	​	​	240	​	1.21	​	​	​	61,910	​	​	172	​	1.10	​
Other interest earning assets	​	​	58,706	​	​	23	​	0.15	​	​	​	36,505	​	​	13	​	0.14	​
Total interest-earning assets	​	$	274,351	​	$	1,884	​	2.72	%	​	$	235,416	​	$	1,856	​	3.13	%
INTEREST-BEARING LIABILITIES	​	​		​	​		​		​	​	​		​	​		​		​
Savings, NOW and money market accounts	​	$	78,822	​	$	24	​	0.12	%	​	$	81,650	​	$	26	​	0.12	%
Certificates of deposit	​	​	67,798	​	​	85	​	0.49	​	​	​	69,076	​	​	98	​	0.56	​
Total interest-bearing deposits	​	​	146,620	​	​	109	​	0.29	​	​	​	150,726	​	​	124	​	0.33	​
FHLB advances	​	​	8,989	​	​	68	​	3.03	​	​	​	8,966	​	​	68	​	3.04	​
Total interest-bearing liabilities	​	$	155,609	​	$	177	​	0.45	%	​	$	159,692	​	$	192	​	0.48	%
Net interest-earning assets	​	$	118,742	​	​	​	​	​	​	​	$	75,724	​	​	​	​	​	​
Net interest income; average interest rate spread	​	​	​	​	$	1,707	​	2.27	%	​	​	​	​	$	1,664	​	2.65	%
Net interest margin^(2)^	​	​	​	​	​	​	​	2.47	%	​	​	​	​	​	​	​	2.80	%

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(1)	Includes non-accrual loans during the respective periods. Calculated net of deferred fees and discounts and loans in-process.
(2)	Equals net interest income divided by average interest-earning assets.
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Non-interest Income

Non-interest income for the fourth quarter of 2021 was $224,000, down $1.8 million, or 89%, from the third quarter of 2021. During the third quarter of 2021, the Company received and recognized into non-interest income a CDFI Rapid Response Program grant totaling $1.8 million.

Non-interest Expense

Non-interest expense for the fourth quarter of 2021 totaled $2.2 million, up $317,000, or 17%, compared to the third quarter of 2021.

Salaries and employee benefits expense totaled $1.3 million for the fourth quarter of 2021, up $216,000, or 20%, from the third quarter of 2021. The increase was primarily due to the addition of bankers to our team, severance costs and the commencement of the ESOP.

Data processing and communication expense totaled $234,000 for the fourth quarter of 2021, up $33,000, or 16%, from the third quarter of 2021 primarily due to the cost of additional technology resources for public company reporting and a new Lafayette branch location.

Professional service fees totaled $133,000 for the fourth quarter of 2021, up $45,000, or 51%, from the third quarter of 2021 mainly due to public company audit and legal services.

Other non-interest expense totaled $172,000 for the fourth quarter of 2021, up $48,000, or 39%, from the third quarter of 2021 primarily due to cost increases driven by our IPO, such as Nasdaq listing fees and increased insurance costs.

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About St. Landry Homestead Federal Savings Bank

Founded in 1922, St. Landry Homestead Federal Savings Bank, is a federally chartered savings bank that serves the banking needs of customers in the Acadiana region of south-central Louisiana. We serve our customers through six full-service branches located in Carencro, Eunice, Lafayette, Opelousas, and Port Barre. Our team is focused on fueling business and improving lives across our region. By working together, we can grow our economy and provide our children with the opportunity to raise their families in Acadiana.

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Forward-looking Statements

This press release contains certain forward-looking statements.  Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.  They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.”  Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of Catalyst Bancorp, Inc. and St. Landry Homestead Federal Savings Bank, and changes in the securities markets.  Except as required by law, the Company does not undertake any obligation to update any forward-looking statements to reflect changes in belief, expectations or events.

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CATALYST BANCORP, INC. AND SUBSIDIARY
STATEMENTS OF FINANCIAL CONDITION
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​	​	(Unaudited)		​	(Unaudited)		​	​	​	​
(Dollars in thousands)		12/31/2021			9/30/2021^(1)^		​	​	12/31/2020^(1)^
ASSETS
Non-interest-bearing cash	​	$	4,933	​	$	5,117	​	​	$	5,507
Interest-bearing cash and due from banks	​	​	35,951	​	​	95,287	​	​	​	19,738
Total cash and cash equivalents	​	​	40,884	​	​	100,404	​	​	​	25,245
Investment securities:	​	​		​	​		​	​	​
Securities available-for-sale, at fair value	​	​	88,339	​	​	49,682	​	​	​	20,730
Securities held-to-maturity	​	​	13,498	​	​	13,504	​	​	​	17,523
Loans receivable, net of unearned income	​	​	131,842	​	​	136,720	​	​	​	151,800
Allowance for loan losses	​	​	(2,276)	​	​	(2,646)	​	​	​	(3,022)
Loans receivable, net	​	​	129,566	​	​	134,074	​	​	​	148,778
Accrued interest receivable	​	​	579	​	​	511	​	​	​	564
Foreclosed real estate	​	​	340	​	​	399	​	​	​	415
Premises and equipment, net	​	​	6,577	​	​	6,658	​	​	​	5,489
Stock in Federal Home Loan Bank, at cost	​	​	1,399	​	​	1,398	​	​	​	1,394
Bank-owned life insurance	​	​	3,303	​	​	3,280	​	​	​	3,213
Other assets	​	​	864	​	​	1,653	​	​	​	1,337
TOTAL ASSETS	​	$	285,349	​	$	311,563	​	​	$	224,688
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LIABILITIES	​	​		​	​		​	​	​
Deposits:	​	​		​	​		​	​	​
Non-interest-bearing	​	$	30,299	​	$	102,091	​	​	$	26,169
Interest-bearing	​	​	146,496	​	​	147,369	​	​	​	138,429
Total deposits	​	​	176,795	​	​	249,460	​	​	​	164,598
Federal Home Loan Bank advances	​	​	9,018	​	​	8,973	​	​	​	8,838
Other liabilities	​	​	1,190	​	​	1,130	​	​	​	719
TOTAL LIABILITIES	​	​	187,003	​	​	259,563	​	​	​	174,155
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SHAREHOLDERS' EQUITY	​	​		​	​		​	​	​
Common stock	​	​	53	​	​	-	​	​	​	-
Additional paid-in capital	​	​	50,801	​	​	-	​	​	​	-
Unallocated common stock held by Employee Stock Ownership Plan	​	​	(4,179)	​	​	-	​	​	​	-
Retained earnings	​	​	52,354	​	​	52,270	​	​	​	50,426
Accumulated other comprehensive (loss) income	​	​	(683)	​	​	(270)	​	​	​	107
TOTAL SHAREHOLDERS' EQUITY	​	​	98,346	​	​	52,000	​	​	​	50,533
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	​	$	285,349	​	$	311,563	​	​	$	224,688

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(1)	Data at September 30, 2021 and December 31, 2020 are Bank-only.

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CATALYST BANCORP, INC. AND SUBSIDIARY
STATEMENTS OF INCOME
(Unaudited)
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​	​	Three Months Ended								​	Year Ended
(Dollars in thousands)	​	12/31/2021			9/30/2021^(1)^			12/31/2020^(1)^			12/31/2021			12/31/2020^(1)^
INTEREST INCOME	​
Loans receivable, including fees	​	$	1,621	​	$	1,671	​	$	1,889	​	$	6,965	​	$	7,827
Investment securities	​	​	240	​	​	172	​	​	93	​	​	674	​	​	568
Other	​	​	23	​	​	13	​	​	10	​	​	60	​	​	95
Total interest income	​	​	1,884	​	​	1,856	​	​	1,992	​	​	7,699	​	​	8,490
INTEREST EXPENSE	​	​		​	​		​	​		​	​		​	​
Deposits	​	​	109	​	​	124	​	​	182	​	​	523	​	​	920
Advances from Federal Home Loan Bank	​	​	68	​	​	68	​	​	189	​	​	272	​	​	785
Total interest expense	​	​	177	​	​	192	​	​	371	​	​	795	​	​	1,705
Net interest income	​	​	1,707	​	​	1,664	​	​	1,621	​	​	6,904	​	​	6,785
(Reversal of) provision for loan losses	​	​	(374)	​	​	-	​	​	320	​	​	(660)	​	​	985
Net interest income after (reversal of) provision for loan losses	​	​	2,081	​	​	1,664	​	​	1,301	​	​	7,564	​	​	5,800
NON-INTEREST INCOME	​	​		​	​		​	​		​	​		​	​
Service charges on deposit accounts	​	​	193	​	​	165	​	​	147	​	​	641	​	​	575
Gain on sale of fixed assets	​	​	-	​	​	-	​	​	-	​	​	24	​	​	16
Bank-owned life insurance	​	​	23	​	​	23	​	​	20	​	​	90	​	​	70
Federal community development grant	​	​	-	​	​	1,826	​	​	203	​	​	1,826	​	​	203
Other	​	​	8	​	​	11	​	​	51	​	​	45	​	​	102
Total non-interest income	​	​	224	​	​	2,025	​	​	421	​	​	2,626	​	​	966
NON-INTEREST EXPENSE	​	​		​	​		​	​		​	​		​	​
Salaries and employee benefits	​	​	1,300	​	​	1,084	​	​	812	​	​	4,631	​	​	3,644
Occupancy and equipment	​	​	220	​	​	215	​	​	188	​	​	818	​	​	678
Data processing and communication	​	​	234	​	​	201	​	​	171	​	​	790	​	​	612
Professional fees	​	​	133	​	​	88	​	​	108	​	​	388	​	​	273
Directors’ fees	​	​	68	​	​	70	​	​	(21)	​	​	279	​	​	219
ATM and debit card	​	​	64	​	​	48	​	​	40	​	​	201	​	​	151
Foreclosed assets, net	​	​	1	​	​	39	​	​	16	​	​	75	​	​	287
Advertising and marketing	​	​	8	​	​	14	​	​	11	​	​	43	​	​	86
Prepayment penalties on FHLB advances	​	​	-	​	​	-	​	​	1,510	​	​	-	​	​	1,510
Other	​	​	172	​	​	124	​	​	108	​	​	551	​	​	483
Total non-interest expense	​	​	2,200	​	​	1,883	​	​	2,943	​	​	7,776	​	​	7,943
Income (loss) before income tax expense	​	​	105	​	​	1,806	​	​	(1,221)	​	​	2,414	​	​	(1,177)
Income tax expense (benefit)	​	​	22	​	​	373	​	​	(507)	​	​	487	​	​	(474)
NET INCOME (LOSS)	​	$	83	​	$	1,433	​	$	(714)	​	$	1,927	​	$	(703)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Earnings per share - basic	​	$	0.02	​	$	N/A	​	$	N/A	​	$	0.40	​	$	N/A

​

(1)	Data for the periods ended September 30, 2021 and December 31, 2020 are Bank-only.

​

6

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
CATALYST BANCORP, INC. AND SUBSIDIARY
SELECTED FINANCIAL DATA
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended											​	Year Ended
(Dollars in thousands)	​	12/31/2021				9/30/2021^(1)^				12/31/2020^(1)^				12/31/2021				12/31/2020^(1)^
EARNINGS DATA	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total interest income	​	$	1,884	​	​	$	1,856	​	​	$	1,992	​	​	$	7,699	​	​	$	8,490	​
Total interest expense	​	​	177	​	​	​	192	​	​	​	371	​	​	​	795	​	​	​	1,705	​
Net interest income	​	​	1,707	​	​	​	1,664	​	​	​	1,621	​	​	​	6,904	​	​	​	6,785	​
(Reversal of) provision for loan losses	​	​	(374)	​	​	​	-	​	​	​	320	​	​	​	(660)	​	​	​	985	​
Total non-interest income	​	​	224	​	​	​	2,025	​	​	​	421	​	​	​	2,626	​	​	​	966	​
Total non-interest expense	​	​	2,200	​	​	​	1,883	​	​	​	2,943	​	​	​	7,776	​	​	​	7,943	​
Income tax expense (benefit)	​	​	22	​	​	​	373	​	​	​	(507)	​	​	​	487	​	​	​	(474)	​
Net income (loss)	​	$	83	​	​	$	1,433	​	​	$	(714)	​	​	$	1,927	​	​	$	(703)	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
ALLOWANCE FOR LOANS LOSSES	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Beginning balance	​	$	2,646	​	​	$	2,649	​	​	$	2,742	​	​	$	3,022	​	​	$	2,071	​
(Reversal of) provision for loan losses	​	​	(374)	​	​	​	-	​	​	​	320	​	​	​	(660)	​	​	​	985	​
Charge-offs	​	​	-	​	​	​	(18)	​	​	​	(58)	​	​	​	(150)	​	​	​	(140)	​
Recoveries	​	​	4	​	​	​	15	​	​	​	18	​	​	​	64	​	​	​	106	​
Net recoveries (charge-offs)	​	​	4	​	​	​	(3)	​	​	​	(40)	​	​	​	(86)	​	​	​	(34)	​
Ending balance	​	$	2,276	​	​	$	2,646	​	​	$	3,022	​	​	$	2,276	​	​	$	3,022	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
AVERAGE BALANCE SHEET DATA	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total assets	​	$	288,852	​	​	$	253,146	​	​	$	239,326	​	​	$	252,571	​	​	$	232,694	​
Total interest-earning assets	​	​	274,351	​	​	​	235,416	​	​	​	227,099	​	​	​	237,331	​	​	​	219,910	​
Total loans	​	​	137,190	​	​	​	137,001	​	​	​	157,132	​	​	​	141,592	​	​	​	161,208	​
Total interest-bearing deposits	​	​	146,620	​	​	​	150,726	​	​	​	137,372	​	​	​	146,968	​	​	​	132,336	​
Total interest-bearing liabilities	​	​	155,609	​	​	​	159,692	​	​	​	159,910	​	​	​	155,895	​	​	​	156,718	​
Total deposits	​	​	185,660	​	​	​	191,060	​	​	​	164,388	​	​	​	181,032	​	​	​	155,697	​
Total equity	​	​	92,942	​	​	​	50,920	​	​	​	51,235	​	​	​	61,323	​	​	​	51,600	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
SELECTED RATIOS	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Return on average assets	​	​	0.11	%	​	​	2.25	%	​	​	(1.19)	%	​	​	0.76	%	​	​	(0.30)	%
Return on average equity	​	​	0.35	​	​	​	11.17	​	​	​	(5.54)	​	​	​	3.14	​	​	​	(1.36)	​
Efficiency ratio	​	​	113.93	​	​	​	51.04	​	​	​	144.12	​	​	​	81.59	​	​	​	102.48	​
Average equity to average assets	​	​	32.18	​	​	​	20.11	​	​	​	21.41	​	​	​	24.28	​	​	​	22.18	​
Common equity Tier 1 capital ratio^(2)^	​	​	63.51	​	​	​	38.94	​	​	​	40.92	​	​	​	63.51	​	​	​	40.92	​
Tier 1 leverage capital ratio^(2)^	​	​	27.38	​	​	​	20.65	​	​	​	21.06	​	​	​	27.38	​	​	​	21.06	​
Total risk-based capital ratio^(2)^	​	​	64.77	​	​	​	40.20	​	​	​	42.29	​	​	​	64.77	​	​	​	42.29	​
Net interest margin	​	​	2.47	​	​	​	2.80	​	​	​	2.84	​	​	​	2.91	​	​	​	3.09	​

​

(1)	Data at and for the periods ended September 30, 2021 and December 31, 2020 are Bank-only.
(2)	Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change.
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7

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