Catalyst Bancorp Reports Q2 2025 Financial Results with $521,000 Net Income

Catalyst Bancorp, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $521,000, a slight decrease from $527,000 in the same period last year. For the first half of 2025, the company achieved a net income of $1.1 million, a significant recovery from a net loss of $4.2 million during the first half of 2024. The bank's total assets stood at $273.8 million as of June 30, 2025, down 1.1% from $276.7 million at the end of 2024. The decrease was primarily attributed to a reduction in cash and total deposits, which fell by 1.9% to $182.2 million.

The bank's loan portfolio showed modest growth, with total loans increasing by $493,000, or 0.3%, to $167.6 million. Notably, commercial real estate loans surged by 53.7%, while construction and land loans decreased by 37.3%. The allowance for credit losses on loans was $2.4 million, representing 1.45% of total loans, a slight decrease from 1.51% at the end of 2024. The provision for credit losses was zero for the quarter, contrasting with a provision of $99,000 in the same quarter last year.

Catalyst Bancorp's net interest income for the second quarter was $2.5 million, reflecting a 0.8% increase from the previous year, while the net interest margin improved to 3.98%, up 26 basis points. The bank did not incur any losses on the sale of investment securities in 2025, a notable recovery from a $5.5 million loss in the prior year. Non-interest expenses rose by 5.3% to $2.2 million, primarily due to increased salaries and employee benefits.

In terms of strategic developments, Catalyst Bancorp has focused on enhancing its community banking model, targeting small to mid-sized businesses while continuing to serve its traditional customer base. The bank operates six full-service branches in the Acadiana region of Louisiana and has been actively managing its liquidity, with total unused and available liquidity sources amounting to $75.1 million as of June 30, 2025. The bank's management remains optimistic about future growth, citing a commitment to maintaining a strong liquidity position and adapting to market conditions.