Catalyst Bancorp, Inc. (CLST) - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Catalyst Bancorp, Inc. is the holding company for Catalyst Bank, a community-oriented savings bank headquartered in Opelousas, Louisiana, serving the Acadiana region through six full-service locations. The Company operates as a non-accelerated filer and a smaller reporting company.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 | Dec 31, 2025 (Balance Sheet) |
|---|---|---|---|
| Total Assets | $288.5 million | N/A | $282.9 million |
| Total Loans (Net) | $161.4 million | N/A | $167.8 million |
| Total Deposits | $195.4 million | N/A | $185.3 million |
| Net Interest Income | $2.55 million | $2.37 million | N/A |
| Net Interest Margin | 3.83% | 3.89% | N/A |
| Provision for Credit Losses | ($70,000) Reversal | $0 | N/A |
| Non-Interest Expense | $2.28 million | $1.98 million | N/A |
| Net Income | $558,000 | $586,000 | N/A |
| Diluted EPS | $0.15 | $0.16 | N/A |
| Shareholders' Equity | $82.2 million | N/A | $81.7 million |
| Non-Performing Assets | $2.71 million | N/A | $2.68 million |
Material Changes vs. Prior Period
- Loan Portfolio Contraction: Total loans decreased by $6.5 million (3.8%) from the prior quarter, primarily driven by a $5.6 million reduction in Commercial and Industrial (C&I) loans following the sale of a borrower's business. Conversely, Construction and Land loans increased by $0.96 million.
- Deposit Growth: Total deposits increased by $10.1 million (5.5%) quarter-over-quarter, driven by growth in non-interest-bearing demand deposits and savings accounts.
- Expense Increase: Non-interest expense rose 15.2% year-over-year. This increase is largely attributable to $95,000 in professional fees related to the Lakeside Bancshares acquisition and the absence of $216,000 in insurance proceeds from damaged foreclosed properties that offset expenses in Q1 2025.
- Net Income Decline: Net income decreased by $28,000 (4.8%) compared to Q1 2025, despite a $70,000 reversal of the provision for credit losses, due to higher operating expenses.
- Asset Quality: Non-performing assets increased slightly to $2.71 million. A $304,000 commercial real estate loan was placed on non-accrual status during the quarter.
Guidance, Outlook, and Material Events
- Acquisition of Lakeside Bancshares: On April 7, 2026, the Company entered into a definitive agreement to acquire Lakeside Bancshares, Inc. and Lakeside Bank. The transaction involves a cash payment of $19.58 per share (approx. $41.1 million aggregate) and is expected to close in Q3 2026, subject to regulatory and shareholder approval.
- Share Repurchases: The Company repurchased 16,614 shares in Q1 2026 at an average price of $15.71. Repurchases were temporarily paused during the quarter for due diligence on the Lakeside deal but have resumed as of the filing date. Approximately 172,297 shares remain available under the November 2025 Repurchase Plan.
- Liquidity: The Company maintains strong liquidity with $83.4 million in unused and available sources, including $57.4 million in FHLB borrowing capacity and $17.8 million in a correspondent bank line of credit.
- Capital Position: The Bank exceeded all regulatory capital requirements and was categorized as "well-capitalized" as of March 31, 2026.
Investor Verification Checklist
- Verify the status of regulatory approvals for the Lakeside Bancshares merger and the expected closing timeline.
- Monitor the impact of the $95,000 acquisition-related professional fees on future quarters' non-interest expense.
- Review the composition of the $2.71 million in non-performing assets, specifically the new $304,000 non-accrual commercial real estate loan.
- Assess the sustainability of deposit growth given the 5.5% quarter-over-quarter increase and the mix of public vs. non-public funds.
- Confirm the resumption and pace of share repurchases under the November 2025 plan post-acquisition announcement.