Catalyst Bancorp, Inc. Announces Agreement to Acquire Lakeside Bancshares, Inc.
Rhea-AI Summary
Catalyst Bancorp (Nasdaq: CLST) agreed to acquire Lakeside Bancshares (OTC: LKSB) in an all-cash merger valuing Lakeside at $19.58 per share ($41.1 million aggregate), with Catalyst surviving and Lakeside merged into Catalyst Bank.
The deal, expected to close in Q3 2026, creates a combined company with approximately $627.3M assets, $399.9M loans and $470.0M deposits and is projected to be >180% EPS accretive when cost saves are realized.
Catalyst expects leverage and total risk-based capital ratios of ~10.4% and 15.4%, respectively, and says no additional capital is needed.
AI-generated analysis. Not financial advice.
Positive
- EPS accretion projected >180% after cost savings
- Combined assets of $627.3M based on 12/31/2025 data
- Combined loans of $399.9M and deposits of $470.0M
- No additional capital required to complete the transaction
- Deal more than doubles company size per CEO comment
Negative
- All-cash purchase price of $41.1M paid to Lakeside shareholders
- Transaction subject to regulatory approvals and Lakeside shareholder vote
News Market Reaction – CLST
On the day this news was published, CLST declined 6.61%, reflecting a notable negative market reaction. Argus tracked a trough of -2.7% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $5M from the company's valuation, bringing the market cap to $66.56M at that time. Trading volume was exceptionally heavy at 14.3x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Among close peers, BYFC appeared in momentum scans, down about 3.11% without news. Other regional bank peers show mixed moves, suggesting today’s acquisition news is company-specific rather than a sector-wide catalyst.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 29 | Earnings results | Positive | +0.0% | Reported 2025 net income of $2.1M vs prior-year loss with Q4 profit. |
| Nov 20 | Share repurchase plan | Positive | +0.4% | Board approved new plan to repurchase up to 205,000 shares (~5% of stock). |
| Oct 23 | Earnings results | Positive | +0.1% | Q3 2025 earnings with positive net income and ongoing share repurchases. |
Recent news has generally been positive, with modestly positive price reactions to buybacks and earnings and one flat reaction to stronger full-year results.
Over the past several months, Catalyst reported improving fundamentals and active capital management. On Oct 23, 2025, Q3 2025 results showed net income of $489,000, growing deposits and continued share repurchases, with a small positive price move. A new repurchase plan on Nov 20, 2025 authorized buybacks of up to 205,000 shares, again with a slight gain. Q4 and full-year 2025 results on Jan 29, 2026 highlighted a swing from a $3.1M loss to $2.1M in net income, but the immediate price reaction was flat. Today’s acquisition fits a pattern of management-driven efforts to grow and deploy capital.
Market Pulse Summary
The stock moved -6.6% in the session following this news. A negative reaction despite clearly articulated growth goals could fit a pattern where markets focus on deal execution risk and integration complexity rather than headline accretion. The acquisition more than doubles assets to about $627.3 million and is guided to be over 180% EPS accretive with post-merger leverage and total risk-based capital ratios of 10.4% and 15.4%. However, investors may weigh uncertainties around regulatory approvals, cost-savings realization, and potential shifts in loan and deposit mix.
Key Terms
all-cash transaction financial
Merger Agreement regulatory
risk-based capital ratios regulatory
Form 8-K regulatory
regulatory approvals regulatory
AI-generated analysis. Not financial advice.
"Lakeside Bank has built a tremendous reputation across
"This transaction more than doubles the size of our company," continued Mr. Zanco, "and significantly enhances our earnings and future growth potential. Our leadership team's merger experience positions us to immediately play offense in adding customers in
Lakeside operates four (4) branch locations in
"Our decision to join forces with Catalyst Bank comes from a place of strength and long-term vision," said Roy Raftery, President and CEO of Lakeside Bank. "This partnership allows us to preserve the relationships and community focus that define our bank while gaining the scale, technology, and resources needed to serve our customers even better in the years ahead."
The Merger Agreement was unanimously approved by the boards of directors of both companies. The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions, including regulatory approvals and Lakeside shareholder approval.
Catalyst anticipates the transaction will be over
Brean Capital, LLC acted as financial advisor to Catalyst and Jones Walker LLP acted as its legal advisor in the transaction. Sheshunoff & Co Investment Banking acted as financial advisor to Lakeside and Fenimore Kay Harrison LLP acted as its legal advisor in the transaction.
An investor presentation with additional information will be attached as an exhibit to Form 8-K and filed with the Securities and Exchange Commission ("SEC"). Catalyst's SEC filings are available under the Investor Relations menu option of Catalyst Bank's website at www.catalystbank.com or through the SEC's website at www.sec.gov.
About Catalyst Bancorp, Inc.
Catalyst Bancorp, Inc. (Nasdaq: CLST) is a
About Lakeside
Lakeside Bancshares, Inc. is a
Forward-looking Statements
This news release contains, and the officers and directors of Catalyst may from time to time make, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are typically identified by words or phrases such as "may," "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "forecast," and other words and terms of similar meaning. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties.
Catalyst cautions readers that any forward-looking statement is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. Such forward-looking statements include but are not limited to statements about the benefits of the proposed merger involving Catalyst and Lakeside, including future financial and operating results; statements about Catalyst's plans, objectives, expectations and intentions; statements about the expected timing of completion of the proposed merger; and other statements that are not historical facts. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties relating to: (i) the ability to obtain the requisite shareholder approvals; (ii) the risk that Catalyst may be unable to obtain governmental and regulatory approvals required to consummate the proposed merger, or required governmental and regulatory approvals may delay the merger or result in the imposition of conditions that could cause the parties to abandon the merger; (iii) the risk that a condition to closing may not be satisfied; (iv) the timing to consummate the proposed merger; (v) the risk that the businesses will not be integrated successfully; (vi) the risk that the cost savings and any other synergies from the proposed merger may not be fully realized or may take longer to realize than expected; (vii) disruption from the proposed merger making it more difficult to maintain relationships with customers, employees or vendors; (viii) the diversion of management time on merger-related issues; and (ix) other factors which Catalyst discusses or refers to in its reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-k) and other subsequent filings with the SEC, which are available on Catalyst's website or at the SEC's website at www.sec.gov.
Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on any forward-looking statement as a prediction of future events. Any forward-looking statement speaks only as of the date on which it is made, and except as required by law, Catalyst expressly disclaims any obligation to update its forward-looking statements whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements concerning the proposed transaction or other matters attributable to Catalyst or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.
For more information:
Catalyst Bancorp, Inc.
Joe Zanco, President and CEO
(337) 948-3033
Lakeside Bancshares, Inc.
Roy Raftery, President and CEO
(337) 474-3766
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SOURCE Catalyst Bancorp, Inc.