Catalyst Bancorp Reports $524,000 Net Income in Q2 2026, Completes Acquisition of Lakeside Bancshares

Catalyst Bancorp, Inc. reported a net income of $524,000 for the second quarter of 2026, a slight increase from $521,000 in the same period of 2025. For the first half of 2026, the company achieved a net income of $1.1 million, compared to $1.1 million for the first half of 2025. The earnings per share remained stable at $0.30 for both periods. Total interest income for the second quarter rose to $3.58 million, up from $3.46 million year-over-year, while total interest expense remained unchanged at $993,000. The net interest income after a reversal of credit losses was $2.69 million, reflecting a 9.2% increase from the previous year.

In terms of financial position, Catalyst Bancorp's total assets increased by $7.1 million, or 2.5%, to $290 million as of June 30, 2026, compared to $282.9 million at the end of 2025. Cash and cash equivalents saw a significant rise of 46.7%, reaching $36.98 million, primarily due to an increase in deposits. Total deposits grew by $11.1 million, or 6%, to $196.39 million, while total loans decreased by 4.4% to $162.79 million. The allowance for credit losses on loans decreased to $2.19 million, representing 1.34% of total loans, down from 1.39% at the end of 2025.

Strategically, Catalyst Bancorp completed the acquisition of Lakeside Bancshares, Inc. and its subsidiary, Lakeside Bank, on July 14, 2026. This acquisition is expected to enhance the company's asset base significantly, increasing total assets to approximately $632 million and expanding its market presence in Southwest Louisiana. The merger-related expenses for the second quarter totaled $87,000, impacting the overall financial results.

Operationally, the company maintained a stable employee count of 49 and continued to operate six banking offices. The total non-performing loans decreased to $2.32 million, or 1.43% of total loans, down from $2.64 million, or 1.55%, at the end of 2025. The company also reported a decrease in non-performing assets, which fell to $2.33 million from $2.68 million.

Looking ahead, Catalyst Bancorp anticipates continued growth in its deposit base and loan portfolio, driven by its strategic focus on community banking and small to mid-sized businesses. The company remains committed to maintaining a strong liquidity position and managing its credit risk effectively, particularly in light of the recent acquisition and the evolving economic landscape.