Catalyst Bancorp, Inc. reported its financial results for the first quarter of 2026, revealing a net income of $558,000, or $0.15 per diluted share, a decrease of 4.8% from the $586,000, or $0.16 per diluted share, recorded in the same period of 2025. The company's total assets increased by $5.6 million, or 2.0%, to $288.5 million, driven primarily by a significant rise in cash and cash equivalents, which grew by 52.9% to $38.5 million. However, total loans decreased by 3.8% to $163.7 million, reflecting a decline in commercial and industrial loans, which fell by 17.9% to $25.6 million.

The company's net interest income rose by $180,000, or 7.6%, to $2.5 million, attributed to an increase in interest income from investment securities, which totaled $522,000, up from $275,000 in the previous year. The net interest margin slightly decreased to 3.83%, down six basis points from the prior year. Catalyst Bancorp also recorded a reversal of provision for credit losses of $70,000, contrasting with no provision in the same quarter of 2025, indicating improved credit quality and reduced loan balances.

In terms of operational metrics, total deposits increased by $10.1 million, or 5.5%, to $195.4 million, with non-interest-bearing deposits rising by 15.8%. The company’s borrowings decreased significantly by 33.8% to $9.8 million, reflecting a strategic reduction in reliance on external funding. The total shareholders' equity rose to $82.2 million, a 0.6% increase from the previous quarter, bolstered by retained earnings despite share repurchases.

Looking ahead, Catalyst Bancorp announced plans to acquire Lakeside Bancshares, Inc. and its subsidiary, Lakeside Bank, in a transaction valued at approximately $41.1 million. This merger, expected to close in the third quarter of 2026, is anticipated to enhance the company's market presence and operational scale. The company remains focused on maintaining a strong liquidity position and expects to continue leveraging its community banking model to drive growth in the Acadiana region of Louisiana.

About Catalyst Bancorp, Inc.

Catalyst Bancorp, Inc. is a Louisiana-based bank holding company focused on community banking through its subsidiary, Catalyst Bank. The bank offers a range of financial services, including residential and commercial loans, and aims to attract small to mid-sized businesses. With a strategic shift towards commercial lending, Catalyst is positioned to capitalize on growth opportunities in the Acadiana region, enhancing its service offerings and expanding its branch network.

This description was generated via AI from an annual report. Updated over 1 year ago.

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