8-K - CLST - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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


Date of Report (Date of earliest event reported)	July 24, 2025

Catalyst Bancorp, Inc.

(Exact name of registrant as specified in its charter)


Louisiana	001-40893	86-2411762
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


235 N. Court Street, Opelousas, Louisiana	70570
(Address of principal executive offices)	(Zip Code)


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

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):


☐	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>

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


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. ☐

ITEM 2.02 Results of Operations and Financial Condition

On July 24, 2025, Catalyst Bancorp, Inc. (the “Company”) announced its results for the quarter ended June 30, 2025. A copy of the related press release (the "Press Release") is attached as Exhibit 99.1 to this Current Report on Form 8-K. The information furnished under items 2.02 and 9.01 of this Current Report on Form 8-K, including the exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section, and it shall not be deemed incorporated by reference in any filing under the Exchange Act, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing to this Form 8-K.

ITEM 9.01 Financial Statements and Exhibits

(d)****Exhibits

The following exhibits are included herein:


Exhibit Number		Description
99.1		Press Release, dated July 24, 2025
104		Cover Page Interactive Data File. Embedded within the Inline XBRL document.

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.


		CATALYST BANCORP, INC.

Date:	July 24, 2025	By:	/s/ Joseph B. Zanco
			Joseph B. Zanco
			President and Chief Executive Officer

For Immediate Release

Exhibit 99.1

For more information:

Joe Zanco, President and CEO

(337) 948-3033

For Immediate Release

Release Date: July 24, 2025

Catalyst Bancorp, Inc. Announces 2025 Second Quarter Results

Opelousas, Louisiana – Catalyst Bancorp, Inc. (Nasdaq: “CLST”) (the “Company”), the parent company for Catalyst Bank (the “Bank”) (www.catalystbank.com), reported net income of $521,000 for the second quarter of 2025, compared to net income of $586,000 for the first quarter of 2025.

“We’re pleased to see both loan and deposit growth during the quarter,” said Joe Zanco, President and Chief Executive Officer of the Company and Bank. “When given the opportunity to earn new business, our success rate remains strong. Our team continues to build momentum across our markets.”

Loans

Loans totaled $167.6 million at June 30, 2025, up $1.5 million, or less than 1%, from March 31, 2025. The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated.


(Dollars in thousands)	6/30/2025		3/31/2025		Change
Real estate loans
One- to four-family residential	$	80,195	$	82,025	$	(1,830)	(2)	%
Commercial real estate		33,976		22,103		11,873	54
Construction and land		20,650		32,038		(11,388)	(36)
Multi-family residential		5,432		2,530		2,902	115
Total real estate loans		140,253		138,696		1,557	1
Other loans
Commercial and industrial		25,035		25,447		(412)	(2)	%
Consumer		2,281		1,934		347	18
Total other loans		27,316		27,381		(65)	-
Total loans	$	167,569	$	166,077	$	1,492	1

In the second quarter of 2025, four construction loans totaling $14.5 million were converted to amortizing real estate loans following the completion of their respective construction projects. Of these, one loan totaling $2.9 million was classified as multi-family, while the remaining loans were designated as commercial real estate.

The following table presents certain major segments of our commercial real estate, construction and land, and commercial and industrial loan balances as of the dates indicated.


(Dollars in thousands)	6/30/2025		3/31/2025		Change
Commercial real estate
Retail	$	9,739	$	3,723	$	6,016	162	%
Hospitality		5,849		3,342		2,507	75
Health service facilities		3,345		389		2,956	760
Restaurants		1,049		1,070		(21)	(2)
Oilfield services		384		393		(9)	(2)
Other non-owner occupied		2,648		2,479		169	7
Other owner occupied		10,962		10,707		255	2
Total commercial real estate	$	33,976	$	22,103	$	11,873	54
Construction and land
Multi-family residential	$	8,997	$	11,297	$	(2,300)	(20)	%
Health service facilities		7,649		8,626		(977)	(11)
Hospitality		-		2,716		(2,716)	(100)
Retail		-		6,077		(6,077)	(100)
Other commercial construction and land		1,782		1,791		(9)	(1)
Consumer residential construction and land		2,222		1,531		691	45
Total construction and land	$	20,650	$	32,038	$	(11,388)	(36)
Commercial and industrial
Oilfield services	$	8,081	$	8,474	$	(393)	(5)	%
Industrial equipment		8,453		8,285		168	2
Professional services		3,146		3,119		27	1
Other commercial and industrial		5,355		5,569		(214)	(4)
Total commercial and industrial loans	$	25,035	$	25,447	$	(412)	(2)

Credit Quality and Allowance for Credit Losses

At June 30, 2025, non-performing assets (“NPAs”) totaled $1.8 million, compared to $1.7 million at March 31, 2025. The ratio of NPAs to total assets was 0.64% and 0.63% at June 30, 2025 and March 31, 2025, respectively. Non-performing loans (“NPLs”) comprised 1.00% and 0.99% of total loans at June 30, 2025 and March 31, 2025, respectively. At June 30, 2025 and March 31, 2025, 99% and 98% of total NPLs, respectively, were one- to four-family residential mortgage loans.

At June 30, 2025, the allowance for credit losses on loans totaled $2.4 million, or 1.45% of total loans, compared to $2.5 million, or 1.51% of total loans, at March 31, 2025. The provision for credit losses was zero for the first and second quarters of 2025. Net loan charge-offs totaled $42,000 during the second quarter of 2025, compared to net charge-offs of $39,000 for the first quarter of 2025. Net loan charge-offs during the first and second quarters of 2025 were primarily related to residential mortgage loans and overdrawn deposit accounts.

Deposits

Total deposits were $182.2 million at June 30, 2025, up $1.6 million, or 1%, from March 31, 2025. Total deposits averaged $179.4 million during the second quarter of 2025, compared to $177.1 million during the first quarter of 2025. The change in deposits was mainly due to fluctuations in public funds and inflows from commercial customers. The following table sets forth the composition of the Company’s deposits as of the dates indicated.


(Dollars in thousands)	6/30/2025		3/31/2025		Change
Non-interest-bearing demand deposits	$	31,155	$	26,093	$	5,062	19	%
Interest-bearing demand deposits		35,307		42,737		(7,430)	(17)
Money market		9,437		9,737		(300)	(3)
Savings		51,001		42,542		8,459	20
Certificates of deposit		55,311		59,489		(4,178)	(7)
Total deposits	$	182,211	$	180,598	$	1,613	1

The ratio of the Company’s total loans to total deposits was 92% at both June 30 and March 31, 2025.

Total public fund deposits amounted to $29.0 million, or 16% of total deposits, at June 30, 2025, compared to $29.8 million, or 17% of total deposits, at March 31, 2025. At June 30, 2025, approximately 64% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits, compared to 80% at March 31, 2025. At June 30, 2025, a larger portion of public funds were held in savings accounts.

Capital and Share Repurchases

At June 30, 2025 and March 31, 2025, consolidated shareholders’ equity totaled $80.8 million, or 29.5% of total assets, and $80.6 million, or 29.7% of total assets, respectively.

The Company repurchased 62,385 shares of its common stock at an average cost per share of $11.91 during the second quarter of 2025, compared to 72,949 shares at an average cost per share of $11.86 during the first quarter of 2025. Under the Company’s November 2024 Repurchase Plan, 51,816 shares of the Company’s common stock were available for repurchase at June 30, 2025. Since the announcement of our first share repurchase plan on January 26, 2023 and through June 30, 2025, the Company has repurchased a total of 1,147,184 shares of its common stock, or approximately 22% of the common shares originally issued, at an average cost per share of $11.92. At June 30, 2025, the Company had common shares outstanding of 4,142,816.

Net Interest Income

The net interest margin for the second quarter of 2025 was 3.98%, up nine basis points compared to the prior quarter. For the second quarter of 2025, the average yield on interest-earning assets was 5.58%, up four basis points from the prior quarter, and the average rate paid on interest-bearing liabilities was 2.51%, down five basis points from the first quarter of 2025.

Net interest income for the second quarter of 2025 was $2.5 million, up $103,000, or 4%, compared to the first quarter of 2025. Total interest income was up $87,000, or 3%, in the second quarter of 2025 compared to the prior quarter largely due to an increase in income on loans. Total interest expense decreased $16,000, or 2%, in the second quarter of 2025 compared to the prior quarter due to a decline in the cost of deposits.

The following table sets forth, for the periods indicated, the Company’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. Taxable equivalent (“TE”) yields have been calculated using a marginal tax rate of 21%. All average balances are based on daily balances.


	Three Months Ended
	6/30/2025						3/31/2025
(Dollars in thousands)	Average Balance		Interest		Average Yield/ Rate^(TE)^		Average Balance		Interest		Average Yield/ Rate^(TE)^
INTEREST-EARNING ASSETS
Loans receivable^(1)^	$	167,627	$	2,792	6.68	%	$	166,145	$	2,738	6.68	%
Investment securities^(2)^		48,285		294	2.49			46,960		275	2.35
Other interest earning assets		33,225		375	4.53			33,585		361	4.36
Total interest-earning assets	$	249,137	$	3,461	5.58		$	246,690	$	3,374	5.54
INTEREST-BEARING LIABILITIES
Demand deposits, money market, and savings accounts	$	92,088	$	466	2.03	%	$	94,133	$	483	2.08	%
Certificates of deposit		57,018		459	3.23			55,846		458	3.32
Total interest-bearing deposits		149,106		925	2.49			149,979		941	2.54
Borrowings		9,619		68	2.84			9,573		68	2.85
Total interest-bearing liabilities	$	158,725	$	993	2.51		$	159,552	$	1,009	2.56
Net interest-earning assets	$	90,412					$	87,138
Net interest income; average interest rate spread			$	2,468	3.07	%			$	2,365	2.98	%
Net interest margin^(3)^					3.98						3.89

(1)	Includes non-accrual loans during the respective periods. Calculated net of deferred fees and discounts and loans in-process.
(2)	Average investment securities does not include unrealized holding gains/losses on available-for-sale securities.
---	---
(3)	Equals net interest income divided by average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%.
---	---

Non-interest Income

Non-interest income for the second quarter of 2025 totaled $344,000, down $209,000, or 38%, compared to the first quarter of 2025. Non-interest income for the first quarter of 2025 included insurance proceeds of $216,000 for fire and flood damages related to foreclosed properties.

Non-interest Expense

Non-interest expense for the second quarter of 2025 totaled $2.2 million, down $20,000, or 1%, compared to the first quarter of 2025.

Foreclosed assets expense for the second quarter of 2025 included a write-down on foreclosed assets of $14,000. In the first quarter of 2025, the Company incurred net losses of $88,000 on the sale of foreclosed assets.

Other non-interest expense totaled $234,000 for the second quarter of 2025, up $27,000, or 13%, from the prior quarter primarily due to an increase in loan collection related expenses.

About Catalyst Bancorp, Inc.

Catalyst Bancorp, Inc. (Nasdaq: CLST) is a Louisiana corporation and registered bank holding company for Catalyst Bank, its wholly-owned subsidiary, with $273.8 million in assets at June 30, 2025. Catalyst Bank, formerly St. Landry Homestead Federal Savings Bank, has been in operation in the Acadiana region of south-central Louisiana for over 100 years. With a focus on fueling business and improving lives throughout the region, Catalyst Bank offers commercial and retail banking products through our six full-service branches located in Carencro, Eunice, Lafayette, Opelousas, and Port Barre. To learn more about Catalyst Bancorp and Catalyst Bank, visit www.catalystbank.com, or the website of the Securities and Exchange Commission, www.sec.gov.

Forward-looking Statements

This news release reflects industry conditions, Company performance and financial results and contains “forward-looking statements,’ which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. These forward-looking statements are subject to a number of risk factors and uncertainties which could cause the Company’s actual results and experience to differ materially from the anticipated results and expectation expressed in such forward-looking statements.

Factors that could cause our actual results to differ materially from our forward-looking statements are described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Supervision and Regulation” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC’s website and the Company’s website, each of which are referenced above. To the extent that statements in this news release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology.

Forward-looking statements represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. All information is as of the date of this news release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.


CATALYST BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	(Unaudited)		(Unaudited)				(Unaudited)
(Dollars in thousands)	6/30/2025		3/31/2025		12/31/2024		6/30/2024
ASSETS
Non-interest-bearing cash	$	4,024	$	4,128	$	4,076	$	4,952
Interest-bearing cash and due from banks		36,032		36,190		40,219		70,503
Total cash and cash equivalents		40,056		40,318		44,295		75,455
Investment securities:
Securities available-for-sale, at fair value		29,294		29,840		28,712		29,748
Securities held-to-maturity		14,948		13,445		13,447		13,454
Loans receivable, net of unearned income		167,569		166,077		167,076		153,266
Allowance for credit losses		(2,431)		(2,500)		(2,522)		(2,215)
Loans receivable, net		165,138		163,577		164,554		151,051
Accrued interest receivable		883		866		851		737
Foreclosed assets		80		77		194		104
Premises and equipment, net		5,977		6,049		6,085		6,114
Stock in correspondent banks, at cost		825		809		1,961		1,919
Bank-owned life insurance		14,726		14,607		14,489		14,252
Other assets		1,858		2,060		2,109		2,499
TOTAL ASSETS	$	273,785	$	271,648	$	276,697	$	295,333

LIABILITIES
Deposits:
Non-interest-bearing	$	31,155	$	26,093	$	28,281	$	30,177
Interest-bearing		151,056		154,505		157,393		149,888
Total deposits		182,211		180,598		185,674		180,065
Borrowings		9,647		9,603		9,558		30,261
Other liabilities		1,128		856		1,261		3,994
TOTAL LIABILITIES		192,986		191,057		196,493		214,320

SHAREHOLDERS' EQUITY
Common stock		41		42		43		45
Additional paid-in capital		38,259		38,844		39,561		41,914
Unallocated common stock held by benefit plans		(5,596)		(5,649)		(5,702)		(6,116)
Retained earnings		50,967		50,446		49,860		48,787
Accumulated other comprehensive loss		(2,872)		(3,092)		(3,558)		(3,617)
TOTAL SHAREHOLDERS' EQUITY		80,799		80,591		80,204		81,013
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	273,785	$	271,648	$	276,697	$	295,333


CATALYST BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Three Months Ended						Six Months Ended
(Dollars in thousands)	6/30/2025		3/31/2025		6/30/2024		6/30/2025		6/30/2024
INTEREST INCOME
Loans receivable, including fees	$	2,792	$	2,738	$	2,383	$	5,530	$	4,597
Investment securities		294		275		210		569		535
Cash and due from banks		353		341		912		694		1,506
Other		22		20		20		42		42
Total interest income		3,461		3,374		3,525		6,835		6,680
INTEREST EXPENSE
Deposits		925		941		771		1,866		1,540
Borrowings		68		68		306		136		599
Total interest expense		993		1,009		1,077		2,002		2,139
Net interest income		2,468		2,365		2,448		4,833		4,541
Provision for credit losses		-		-		99		-		194
Net interest income after provision for credit losses		2,468		2,365		2,349		4,833		4,347
NON-INTEREST INCOME (LOSS)
Service charges on deposit accounts		202		197		194		399		397
Bank-owned life insurance		119		118		113		237		226
Loss on sales of investment securities		-		-		-		-		(5,507)
Other income on foreclosed assets		-		216		-		216		-
(Loss) gain on sale of fixed assets		-		-		(5)		-		6
Other		23		22		64		45		81
Total non-interest income (loss)		344		553		366		897		(4,797)
NON-INTEREST EXPENSE
Salaries and employee benefits		1,262		1,245		1,143		2,507		2,403
Occupancy and equipment		208		199		183		407		379
Data processing and communication		176		182		138		358		932
Professional fees		114		101		117		215		224
Directors’ fees		117		114		114		231		229
ATM and debit card		29		22		31		51		100
Foreclosed assets, net		18		89		26		107		34
Advertising and marketing		20		39		43		59		81
Other		234		207		273		441		477
Total non-interest expense		2,178		2,198		2,068		4,376		4,859
Income (loss) before income tax expense (benefit)		634		720		647		1,354		(5,309)
Income tax expense (benefit)		113		134		120		247		(1,147)
NET INCOME (LOSS)	$	521	$	586	$	527	$	1,107	$	(4,162)

Earnings (loss) per share:
Basic	$	0.14	$	0.16	$	0.13	$	0.30	$	(1.03)
Diluted		0.14		0.16		0.13		0.30		(1.03)


CATALYST BANCORP, INC. AND SUBSIDIARY
SELECTED FINANCIAL DATA

	Three Months Ended									Six Months Ended
(Dollars in thousands)	6/30/2025			3/31/2025			6/30/2024			6/30/2025			6/30/2024
EARNINGS DATA
Total interest income	$	3,461		$	3,374		$	3,525		$	6,835		$	6,680
Total interest expense		993			1,009			1,077			2,002			2,139
Net interest income		2,468			2,365			2,448			4,833			4,541
Provision for credit losses		-			-			99			-			194
Total non-interest income (loss)		344			553			366			897			(4,797)
Total non-interest expense		2,178			2,198			2,068			4,376			4,859
Income tax expense (benefit)		113			134			120			247			(1,147)
Net income (loss)	$	521		$	586		$	527		$	1,107		$	(4,162)

AVERAGE BALANCE SHEET DATA
Total loans	$	167,627		$	166,145		$	150,257		$	166,891		$	147,342
Total interest-earning assets		249,137			246,690			264,776			247,920			267,306
Total assets		270,788			268,232			285,773			269,517			286,240
Total interest-bearing deposits		149,106			149,979			143,611			149,540			144,906
Total interest-bearing liabilities		158,725			159,552			173,079			159,136			173,636
Total deposits		179,426			177,106			173,326			178,272			173,990
Total shareholders' equity		80,611			80,426			80,965			80,519			81,816

SELECTED RATIOS
Return on average assets		0.77	%		0.89	%		0.74	%		0.83	%		(2.92)	%
Return on average equity		2.59			2.96			2.62			2.77			(10.23)
Efficiency ratio		77.46			75.31			73.47			76.37			(1,901.18)
Net interest margin^(TE)^		3.98			3.89			3.72			3.93			3.42
Average equity to average assets		29.77			29.98			28.33			29.88			28.58
Common equity Tier 1 capital ratio^(1)^		43.72			46.95			49.09
Tier 1 leverage capital ratio^(1)^		27.56			29.45			26.88
Total risk-based capital ratio^(1)^		44.98			48.20			50.34

NON-FINANCIAL DATA
Total employees (full-time equivalent)		49			49			47
Common shares issued and outstanding, end of period		4,142,816			4,205,201			4,478,527

(1)	Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change.


CATALYST BANCORP, INC. AND SUBSIDIARY
SELECTED FINANCIAL DATA
(continued)

	Three Months Ended									Six Months Ended
(Dollars in thousands)	6/30/2025			3/31/2025			6/30/2024			6/30/2025		6/30/2024
ALLOWANCE FOR CREDIT LOSSES
Loans:
Beginning balance	$	2,500		$	2,522		$	2,068		$	2,522	$	2,124
Provision for credit losses		(27)			17			185			(10)		227
Charge-offs		(63)			(53)			(57)			(116)		(180)
Recoveries		21			14			19			35		44
Net (charge-offs) recoveries		(42)			(39)			(38)			(81)		(136)
Ending balance	$	2,431		$	2,500		$	2,215		$	2,431	$	2,215

Unfunded commitments:
Beginning balance	$	104		$	121		$	310			121		257
Provision for (reversal of) credit losses on unfunded commitments		27			(17)			(86)			10		(33)
Ending balance	$	131		$	104		$	224		$	131	$	224

Total provision for credit losses	$	-		$	-		$	99		$	-	$	194

CREDIT QUALITY^(1)^
Non-accruing loans	$	1,455		$	1,554		$	1,560
Accruing loans 90 days or more past due		215			91			40
Total non-performing loans		1,670			1,645			1,600
Foreclosed assets		80			77			104
Total non-performing assets	$	1,750		$	1,722		$	1,704

Total non-performing loans to total loans		1.00	%		0.99	%		1.04	%
Total non-performing assets to total assets		0.64			0.63			0.58

(1)	Credit quality data and ratios are as of the end of each period presented.