Catalyst Bancorp, Inc. Announces 2023 Fourth Quarter Results

Rhea-AI Summary

Catalyst Bancorp, Inc. (Nasdaq: CLST) reported a net income of $320,000 for Q4 2023, with a net pre-tax benefit of $371,000 due to a Bank Enterprise Award Program grant. The Company's loan growth reached $9 million, driven by commercial construction and real estate loans, leading to a 7% increase in total loans. The credit quality remains stable, with NPAs totaling $2.1 million and an allowance for loan losses of $2.1 million. The Company repurchased shares and the net interest margin for Q4 2023 was 3.14%. Non-interest income increased by 120% compared to the previous quarter. Non-interest expenses increased by 2% due to professional fees and the upcoming core system conversion.

Positive

• Net income of $320,000 for Q4 2023
• Loan growth of over $9 million, driven by commercial construction and real estate loans
• Stable credit quality with NPAs totaling $2.1 million and an allowance for loan losses of $2.1 million
• Repurchase of 86,964 shares of common stock and a net interest margin of 3.14%
• Non-interest income increased by 120% compared to the previous quarter

Negative

• The $92,000 loss on the sale of investment securities
• Professional fees increased by 40% due to obtaining the BEA Program grant
• Upcoming core system conversion costs of approximately $500,000

Insights

Financial Analyst

The reported net income of Catalyst Bancorp, Inc. reflects a moderate increase in profitability with a net income of $602,000 for the year 2023 compared to $180,000 for 2022. This improvement is partially attributed to the BEA Program grant, which has bolstered the earnings. However, the loss on the sale of investment securities indicates potential volatility in the investment portfolio. Investors should consider the implications of the grant on the company's financials as one-time events can inflate earnings temporarily. The growth in loan volume, particularly in commercial construction and real estate, suggests an aggressive expansion strategy that could lead to increased revenue but also carries higher risk exposure, especially in economic downturns.

Market Research Analyst

The loan portfolio composition of Catalyst Bancorp, Inc. shows a significant portion of adjustable-rate real estate loans, which could be sensitive to interest rate fluctuations. The increase in construction and commercial real estate loans indicates a focus on these sectors and may reflect regional economic trends. Investors should note the potential risks associated with a concentrated loan portfolio, particularly in the face of changing economic conditions. The growth in consumer and commercial deposits, driven by rate specials, suggests competitive deposit-gathering strategies which could impact net interest margins if rates continue to rise.

Credit Risk Analyst

The slight decrease in non-performing assets and loans is a positive signal for credit quality. However, the concentration of non-performing loans in residential mortgages requires close monitoring. The increase in the allowance for loan losses is aligned with loan growth, indicating a prudent approach to risk management. The Current Expected Credit Losses model's impact on provisions reflects the forward-looking nature of credit risk assessment. The net loan charge-offs, mainly from residential loans, should be weighed against the overall loan growth to assess the adequacy of the allowance for loan losses and the potential for future credit events.

OPELOUSAS, La., Jan. 25, 2024 /PRNewswire/ -- Catalyst Bancorp, Inc. (Nasdaq: CLST) (the "Company"), the parent company for Catalyst Bank (the "Bank") (www.catalystbank.com), reported net income of $320,000 for the fourth quarter of 2023 which included a net pre-tax benefit of $371,000 due to a Bank Enterprise Award ("BEA") Program grant from the Community Development Financial Institution ("CDFI") Fund and a $92,000 loss on the sale of investment securities. For the year ended December 31, 2023, net income totaled $602,000, compared to $180,000 for 2022. 

"We produced over $9 million of loan growth during the fourth quarter – our strongest quarter since becoming a public company," said Joe Zanco, President and Chief Executive Officer of the Company and the Bank. "This growth was fueled by the high level of responsiveness our bankers provide to our customers."

Loans

Loans totaled $144.9 million at December 31, 2023, up $9.2 million, or 7%, from September 30, 2023. The increase in total loans during the fourth quarter of 2023 was primarily due to commercial construction and commercial real estate loans. Construction loan growth was largely driven by three separate projects involving the purchase and renovation of a hotel, the construction of a retail health care center, and the purchase and renovation of an industrial warehouse. A significant driver of commercial real estate loan growth was a loan to finance the purchase of a multi-tenant office building in Lafayette, Louisiana.

The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.

(Dollars in thousands)		12/31/2023			9/30/2023			Increase (Decrease)
Real estate loans
One- to four-family residential		$	83,623		$	83,973		$	(350)		-	%
Commercial real estate			21,478			19,113			2,365		12
Construction and land			13,857			6,622			7,235		109
Multi-family residential			3,373			3,424			(51)		(1)
Total real estate loans			122,331			113,132			9,199		8
Other loans
Commercial and industrial			19,984			19,634			350		2
Consumer			2,605			2,906			(301)		(10)
Total other loans			22,589			22,540			49		-
Total loans		$	144,920		$	135,672		$	9,248		7	%

Loans secured by one- to four-family residential properties accounted for 58% of total loans and commercial real estate loans accounted for 15% of total loans at December 31, 2023. Approximately 60% of our real estate loans have adjustable rates and, of our total real estate loans, approximately $60.7 million, or 50%, are scheduled to re-price or mature during the next 12 months. 

Our non-real estate loans primarily consist of commercial and industrial loans, which amounted to 14% of total loans at December 31, 2023. This segment of the portfolio largely consists of loans to local businesses involved in industrial manufacturing and equipment, communications, professional services, and oil and gas support services. Approximately 39% of our commercial and industrial loans have adjustable rates and, of total commercial and industrial loans, approximately $10.2 million, or 51%, are scheduled to re-price or mature during the next 12 months.

Credit Quality and Allowance for Credit Losses

At each of December 31 and September 30, 2023, non-performing assets ("NPAs") totaled $2.1 million and the ratio of NPAs to total assets was 0.76% and 0.82% at such dates, respectively. Non-performing loans ("NPLs") comprised 1.37% of total loans at December 31, 2023, and 1.54% of total loans at September 30, 2023. At December 31 and September 30, 2023, 95% and 96% of total NPLs, respectively, were one- to four-family residential mortgage loans.

At December 31, 2023, the allowance for loan losses totaled $2.1 million, or 1.47% of total loans, compared to $2.0 million at September 30, 2023, or 1.50% of total loans. For the quarter and year ended December 31, 2023, the provision for credit losses totaled $128,000, which was largely attributable to loan growth in the fourth quarter of 2023 that necessitated additional loan provisions according to the Bank's Current Expected Credit Losses model.

Net loan charge-offs totaled $63,000 during the fourth quarter of 2023, compared to net recoveries of $17,000 for the third quarter of 2023. Net loan charge-offs in the fourth quarter of 2023 were primarily attributable to one- to four-family residential loans.

Investment Securities

Total investment securities were $84.0 million, or 31% of total assets, at December 31, 2023. The Company's investment securities portfolio consists primarily of government-sponsored mortgage-backed securities and debt obligations issued by the U.S. government and government agencies. The Company has not purchased investment securities since the fourth quarter of 2022. During the fourth quarter of 2023, the Company sold two available-for-sale investment securities for a pre-tax loss of $92,000. Cash proceeds from the sales totaled $1.9 million.

At December 31, 2023, 86% of total investment securities, based on amortized cost, were classified as available-for-sale. Net unrealized losses on securities classified as available-for-sale totaled $9.2 million at December 31, 2023, compared to $12.8 million at September 30, 2023.

The following table summarizes the amortized cost and fair value of our investment securities portfolio as of December 31, 2023.  

		December 31, 2023
(Dollars in thousands)		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
Securities available-for-sale
Mortgage-backed securities		$	65,704		$	14		$	(8,206)		$	57,512
U.S. Government and agency obligations			7,999			-			(611)			7,388
Municipal obligations			5,998			7			(365)			5,640
Total available-for-sale		$	79,701		$	21		$	(9,182)		$	70,540
Securities held-to-maturity
U.S. Government and agency obligations		$	13,003		$	-		$	(2,210)		$	10,793
Municipal obligations			458			-			(24)			434
Total held-to-maturity		$	13,461		$	-		$	(2,234)		$	11,227

At December 31, 2023, the amortized cost and fair value of pledged investment securities totaled $61.9 million and $53.9 million, respectively. The amortized cost and fair value of investment securities pledged to secure uninsured public fund deposits totaled $49.3 million and $43.2 million, respectively, at December 31, 2023. The remainder of the pledged investment securities at December 31, 2023 served as collateral for borrowings from the Federal Reserve Bank of Atlanta.

Deposits

Total deposits were $165.6 million at December 31, 2023, up $402,000, or less than 1%, from September 30, 2023. A $3.2 million decline in total public funds over the fourth quarter was offset by growth in consumer and commercial deposits that was largely driven by rate specials offered to depositors during the quarter.

The following table sets forth the composition of the Bank's deposits as of the dates indicated.

(Dollars in thousands)		12/31/2023			9/30/2023			Increase (Decrease)
Non-interest-bearing demand deposits		$	28,183		$	33,222		$	(5,039)		(15)	%
Interest-bearing demand deposits			36,867			38,881			(2,014)		(5)
Money market			15,126			15,473			(347)		(2)
Savings			31,518			27,237			4,281		16
Certificates of deposit			53,928			50,407			3,521		7
Total deposits		$	165,622		$	165,220		$	402		-	%

At December 31, 2023, approximately 78% of our total public funds consisted of non-interest-bearing and interest-bearing demand deposits from municipalities within our market. Total public fund deposits amounted to $23.3 million, or 14% of total deposits, at December 31, 2023, compared to $26.4 million, or 16% of total deposits, at September 30, 2023.

Our total uninsured deposits (that is deposits in excess of the FDIC's insurance limit), inclusive of public funds, were approximately $44.6 million at December 31, 2023 and $45.2 million at September 30, 2023. Total uninsured non-public funds deposits were approximately $26.3 million and $23.9 million at December 31 and September 30, 2023, respectively. The full amount of our public fund deposits in excess of the FDIC's insurance limit are secured by pledging investment securities.

Borrowings and Liquidity

Total borrowings at December 31, 2023 were $19.4 million, up $10.0 million from September 30, 2023. During the fourth quarter of 2023, the Bank began borrowing from the Federal Reserve Bank of Atlanta through its Bank Term Funding Program ("BTFP"). At December 31, 2023, the Bank had one $10.0 million BTFP loan outstanding with a contractual interest rate of 4.83% and a maturity date of December 24, 2024.

The ratio of the Company's total loans to total deposits was 88% and 82% as of December 31 and September 30, 2023, respectively. The table below summarizes our unused and available liquidity sources as of December 31, 2023.

(Dollars in thousands)		12/31/2023
Advances from the Federal Home Loan Bank of Dallas		$	48,467
Line of credit with primary correspondent bank			17,800
Federal Reserve's Bank Term Funding Program			1,434
Federal Reserve Discount Window			718
Unpledged available-for-sale investment securities, at fair value			25,385
Total unused and available liquidity		$	93,804

Pledged securities under the BTFP are valued at par when determining borrowing capacity. The total par value of unpledged investment securities eligible as collateral for advances under the BTFP was $16.5 million at December 31, 2023.

Capital and Share Repurchases

The Bank's total risk-based capital ratio was 53.60% and 56.23% at December 31, 2023 and September 30, 2023, respectively. At December 31, 2023 and September 30, 2023, consolidated shareholders' equity totaled $84.6 million, or 31.2% of total assets, and $82.2 million, or 31.9% of total assets, respectively.

The Company repurchased 86,964 shares of its common stock at an average cost per share of $11.24 during the fourth quarter of 2023. During the year ended December 31, 2023, the Company repurchased 528,674 shares of its common stock at an average cost per share of $11.94 through the completion of repurchases of 265,000 shares under its January 2023 Repurchase Plan and 252,000 under its April 2023 Repurchase Plan, and the repurchase of another 11,674 shares pursuant to a third repurchase plan announced in November (the "November 2023 Repurchase Plan"). At December 31, 2023, the Company had common shares outstanding of 4,761,326 and 228,326 of those shares were available for repurchase under the November 2023 Repurchase Plan.

Net Interest Income

The net interest margin for the fourth quarter of 2023 was 3.14%, up one basis point compared to the prior quarter. For the fourth quarter of 2023, the average yield on interest-earning assets was 4.17%, up 26 basis points from the prior quarter, while the average rate paid on interest-bearing liabilities was 1.73%, up 35 basis points from the third quarter of 2023.

Net interest income for the fourth quarter of 2023 was $2.0 million, down $12,000, or 1%, compared to the third quarter of 2023. Total interest income was up $134,000, or 5%, while total interest expense increased by $146,000, or 29%, in the fourth quarter of 2023 compared to the prior quarter.

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
		12/31/2023									9/30/2023
(Dollars in thousands)		Average Balance			Interest			Average Yield/ Rate			Average Balance			Interest			Average Yield/ Rate
INTEREST-EARNING ASSETS
Loans receivable(1)		$	140,757		$	2,066		5.82	%		$	134,851		$	1,852		5.45	%
Investment securities(TE)(2)			96,640			400		1.67				99,373			403		1.64
Other interest earning assets			11,276			137		4.83				16,915			214		5.02
Total interest-earning assets(TE)		$	248,673		$	2,603		4.17	%		$	251,139		$	2,469		3.91	%
INTEREST-BEARING LIABILITIES
Demand deposits, money market, and savings accounts		$	82,474		$	185		0.89	%		$	83,051		$	154		0.73	%
Certificates of deposit			51,707			344		2.64				50,526			274		2.15
Total interest-bearing deposits			134,181			529		1.56				133,577			428		1.27
Borrowings			13,016			114		3.50				9,306			69		2.93
Total interest-bearing liabilities		$	147,197		$	643		1.73	%		$	142,883		$	497		1.38	%
Net interest-earning assets		$	101,476								$	108,256
Net interest income; average interest rate spread(TE)					$	1,960		2.44	%					$	1,972		2.53	%
Net interest margin(TE)(3)								3.14	%								3.13	%

(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 fourth quarter of 2023 was $672,000, up $366,000, or a 120% increase from the third quarter of 2023. The Company received and recognized as income a $437,000 Bank Enterprise Award ("BEA") Program grant from the CDFI Fund during the fourth quarter of 2023. Non-interest income for the fourth quarter of 2023 also included the $92,000 loss on the sale of investment securities discussed previously. The securities were sold for a total of $1.9 million.

Non-interest Expense

Non-interest expense for the fourth quarter of 2023 totaled $2.1 million, up $41,000, or 2%, compared to the third quarter of 2023. Professional fees totaled $140,000 for the fourth quarter of 2023, up $40,000, or 40%, from the prior quarter. Professional fees associated with obtaining the BEA Program grant totaled $66,000 and were expensed in the fourth quarter of 2023.

During the first quarter of 2024, the Company is converting to a new core processing system and expects to incur approximately $500,000 (pre-tax) of data conversion and other associated costs. The core system conversion will significantly enhance our customer-facing and internal banking technology. The Company also estimates annualized savings of greater than $200,000 after completing the conversion.

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 $270.9 million in assets at December 31, 2023. 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, 2022, 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)
(Dollars in thousands)		12/31/2023			9/30/2023			12/31/2022
ASSETS
Non-interest-bearing cash		$	3,654		$	3,497		$	5,092
Interest-bearing cash and due from banks			15,357			9,769			8,380
Total cash and cash equivalents			19,011			13,266			13,472
Investment securities:
Securities available-for-sale, at fair value			70,540			71,808			79,602
Securities held-to-maturity			13,461			13,464			13,475
Loans receivable, net of unearned income			144,920			135,672			133,607
Allowance for loan losses			(2,124)			(2,036)			(1,807)
Loans receivable, net			142,796			133,636			131,800
Accrued interest receivable			906			806			673
Foreclosed assets			60			37			320
Premises and equipment, net			6,072			6,160			6,303
Stock in correspondent banks, at cost			1,878			1,858			1,808
Bank-owned life insurance			14,026			13,917			13,617
Other assets			2,141			2,956			2,254
TOTAL ASSETS		$	270,891		$	257,908		$	263,324
LIABILITIES
Deposits:
Non-interest-bearing		$	28,183		$	33,222		$	33,657
Interest-bearing			137,439			131,998			131,437
Total deposits			165,622			165,220			165,094
Borrowings			19,378			9,333			9,198
Other liabilities			1,274			1,147			558
TOTAL LIABILITIES			186,274			175,700			174,850
SHAREHOLDERS' EQUITY
Common stock			48			48			53
Additional paid-in capital			45,020			45,855			51,062
Unallocated common stock held by benefit plans			(6,221)			(6,274)			(6,307)
Retained earnings			53,007			52,687			52,740
Accumulated other comprehensive income (loss)			(7,237)			(10,108)			(9,074)
TOTAL SHAREHOLDERS' EQUITY			84,617			82,208			88,474
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	270,891		$	257,908		$	263,324

 

CATALYST BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
		Three Months Ended									Year Ended
(Dollars in thousands)		12/31/2023			9/30/2023			12/31/2022			12/31/2023			12/31/2022
INTEREST INCOME
Loans receivable, including fees		$	2,066		$	1,852		$	1,543		$	7,238		$	6,127
Investment securities			400			403			418			1,643			1,480
Other			137			214			145			780			407
Total interest income			2,603			2,469			2,106			9,661			8,014
INTEREST EXPENSE
Deposits			529			428			130			1,541			402
Borrowings			114			69			76			319			281
Total interest expense			643			497			206			1,860			683
Net interest income			1,960			1,972			1,900			7,801			7,331
Provision for (reversal of) credit losses			128			-			-			128			(375)
Net interest income after provision for (reversal of) credit losses			1,832			1,972			1,900			7,673			7,706
NON-INTEREST INCOME
Service charges on deposit accounts			201			190			189			774			731
Bank-owned life insurance			109			104			98			409			314
Gain (loss) on sales of investment securities			(92)			-			-			(92)			-
Gain (loss) on disposals and sales of fixed assets			-			-			-			-			(77)
Federal community development grant			437			-			-			437			171
Other			17			12			14			61			34
Total non-interest income			672			306			301			1,589			1,173
NON-INTEREST EXPENSE
Salaries and employee benefits			1,149			1,141			1,175			4,671			4,822
Occupancy and equipment			193			198			193			802			833
Data processing and communication			236			228			175			911			841
Professional fees			140			100			66			486			538
Directors' fees			118			116			117			463			302
ATM and debit card			63			68			61			250			245
Foreclosed assets, net			5			2			5			72			5
Advertising and marketing			23			25			53			100			240
Franchise and shares tax			10			19			(16)			81			115
Other			185			184			173			743			779
Total non-interest expense			2,122			2,081			2,002			8,579			8,720
Income before income tax expense (benefit)			382			197			199			683			159
Income tax expense (benefit)			62			27			28			81			(21)
NET INCOME		$	320		$	170		$	171		$	602		$	180
Earnings per share:
Basic		$	0.08		$	0.03		$	0.03		$	0.14		$	0.04
Diluted			0.08			0.03			0.03			0.14			0.04

 

CATALYST BANCORP, INC. AND SUBSIDIARY
SELECTED FINANCIAL DATA
		Three Months Ended												Year Ended
(Dollars in thousands)		12/31/2023				9/30/2023				12/31/2022				12/31/2023				12/31/2022
EARNINGS DATA
Total interest income		$	2,603			$	2,469			$	2,106			$	9,661			$	8,014
Total interest expense			643				497				206				1,860				683
Net interest income			1,960				1,972				1,900				7,801				7,331
Provision for (reversal of) credit losses			128				-				-				128				(375)
Total non-interest income			672				306				301				1,589				1,173
Total non-interest expense			2,122				2,081				2,002				8,579				8,720
Income tax expense (benefit)			62				27				28				81				(21)
Net income		$	320			$	170			$	171			$	602			$	180
AVERAGE BALANCE SHEET DATA
Total loans		$	140,757			$	134,851			$	133,102			$	135,713			$	132,503
Total interest-earning assets			248,673				251,139				256,033				252,616				267,300
Total assets			261,657				265,057				270,121				266,655				282,931
Total interest-bearing deposits			134,181				133,577				139,134				136,321				147,266
Total interest-bearing liabilities			147,197				142,883				149,064				146,529				156,560
Total deposits			165,102				170,589				170,952				170,677				179,826
Total shareholders' equity			82,227				84,021				88,558				84,739				93,074
SELECTED RATIOS
Return on average assets			0.49	%			0.25	%			0.25	%			0.23	%			0.06	%
Return on average equity			1.54				0.80				0.76				0.71				0.19
Efficiency ratio			80.61				91.34				90.99				91.36				102.55
Net interest margin(TE)			3.14				3.13				2.96				3.10				2.75
Average equity to average assets			31.43				31.70				32.78				31.78				32.90
Common equity Tier 1 capital ratio(1)			52.34				54.97				56.17
Tier 1 leverage capital ratio(1)			31.67				31.08				30.37
Total risk-based capital ratio(1)			53.60				56.23				57.42
NON-FINANCIAL DATA
Total employees (full-time equivalent)			48				47				50
Common shares issued and outstanding, end of period			4,761,326				4,848,290				5,290,000

(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												Year Ended
(Dollars in thousands)		12/31/2023				9/30/2023				12/31/2022				12/31/2023				12/31/2022
ALLOWANCE FOR CREDIT LOSSES
Allowance for loan losses:
Beginning balance		$	2,036			$	2,081			$	1,804			$	1,807			$	2,276
CECL adoption impact			-				-				-				209				-
Provision for (reversal of) loan losses			151				(62)				-				87				(375)
Charge-offs			(76)				(9)				(19)				(102)				(210)
Recoveries			13				26				22				123				116
Net (charge-offs) recoveries			(63)				17				3				21				(94)
Ending balance		$	2,124			$	2,036			$	1,807			$	2,124			$	1,807
Allowance for unfunded commitments:
Beginning balance			280				218				-				-				-
CECL adoption impact			-				-				-				216				-
Provision for losses on unfunded commitments			(23)				62				-				41				-
Ending balance		$	257			$	280			$	-			$	257			$	-
Total allowance for credit losses, end of period		$	2,381			$	2,316			$	1,807			$	2,381			$	1,807
Total provision for (reversal of) credit losses			128				-				-				128				(375)
CREDIT QUALITY(1)
Non-accruing loans		$	1,967			$	1,961			$	1,494
Accruing loans 90 days or more past due			24				127				191
Total non-performing loans			1,991				2,088				1,685
Foreclosed assets			60				37				320
Total non-performing assets		$	2,051			$	2,125			$	2,005
Total non-performing loans to total loans			1.37	%			1.54	%			1.26	%
Total non-performing assets to total assets			0.76				0.82				0.76

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

For more information:
Joe Zanco, President and CEO
(337) 948-3033

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SOURCE Catalyst Bancorp, Inc.

FAQ

What was Catalyst Bancorp's net income for Q4 2023?

Catalyst Bancorp reported a net income of $320,000 for the fourth quarter of 2023.

What led to the loan growth for Catalyst Bancorp in Q4 2023?

The loan growth was driven by commercial construction and real estate loans.

What was the net interest margin for Catalyst Bancorp in Q4 2023?

The net interest margin for Q4 2023 was 3.14%.

What was the reason behind the increase in non-interest income for Catalyst Bancorp in Q4 2023?

The increase in non-interest income was due to the recognition of a $437,000 Bank Enterprise Award Program grant from the CDFI Fund.

What are the upcoming expenses for Catalyst Bancorp in Q1 2024?

The Company is converting to a new core processing system and expects to incur approximately $500,000 (pre-tax) of data conversion and other associated costs.