Commission file number: 001-40893 CATALYST BANCORP, INC. (Exact name of registrant as specified in its charter) Louisiana 86-2411762 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (I.R.S. Employer Identification No.) (State or other jurisdiction of incorporation of organization) 235 N. Court Street, Opelousas, Louisiana 70570 (Address of principal executive offices; Zip Code) (337) 948-3033 (Registrant's telephone number, including area code) None (Former ...

Exhibit 99.1 For more information: Joe Zanco, President and CEO (337) 948-3033 For Immediate Release Release Date: April 24, 2025 Catalyst Bancorp, Inc. Announces 2025 First Quarter Results Opelousas, Louisiana – Catalyst Bancorp, Inc. (Nasdaq: "CLST") (the "Company"), the parent company for Catalyst Bank (the "Bank") (www.catalystbank.com), reported net income of $586,000 for the first quarter of 2025, compared to net income of $626,000 for the fourth quarter of 2024. "Loan growth was muted to start the ye ...

Loan Portfolio - As of December 31, 2024, Catalyst Bancorp's loan portfolio totaled $167.1 million, representing 60.4% of total assets[24] - Single-family residential mortgage loans accounted for $81.1 million, or 48.5% of the total loan portfolio, with an average outstanding balance of $71,000 per loan[30] - Commercial real estate and multi-family residential loans totaled $24.7 million, or 14.7% of the total loan portfolio[36] - The commercial real estate loan portfolio was $22.1 million, or 13.2% of the total loan portfolio, with an average loan size of $243,000[37] - As of December 31, 2024, the outstanding balance of construction and land loans totaled $32.9 million, representing 19.7% of total loans outstanding, more than doubling since December 31, 2023[42] - Commercial and industrial loans totaled $26.4 million, or 15.8% of the total loan portfolio, at December 31, 2024, with net charge-offs of $128,000 during the year, primarily from unsecured loans[47][48] - The company’s consumer loans amounted to $1.9 million, or 1.3% of the total loan portfolio, with net charge-offs of $35,000 in 2024, up from $22,000 in 2023[50][51] - The outstanding balance of non-residential commercial construction loans was $27.3 million as of December 31, 2024, with all loans performing in accordance with their terms[43] - Single-family residential construction loans totaled $3.1 million, with the largest loan in this segment being $2.2 million[45] - Loans classified as "substandard" totaled $2.8 million at December 31, 2024, down from $3.3 million in 2023, while "special mention" loans increased to $478,000 from $212,000[59] Financial Performance - The company reported a net loss of $3.1 million for 2024, compared to net income of $526,000 for 2023[176] - Net interest income increased by $1.8 million, or 23.9%, to $9.5 million, with net interest margin rising 59 basis points to 3.65%[176] - Total interest income for the year ended December 31, 2024, was $13.9 million, an increase from $9.7 million in 2023[195] - Total non-interest income for 2024 was a loss of $3.8 million, compared to a gain of $1.6 million in 2023[195] - The efficiency ratio increased to 160.51% in 2024 from 92.29% in 2023, indicating a decline in operational efficiency[195] - Non-accrual loans as a percent of total loans outstanding decreased to 0.94% in 2024 from 1.36% in 2023[196] Asset Management - Total assets increased to $276.7 million at December 31, 2024, up $5.8 million or 2.1% from the previous year[176] - The investment securities portfolio amounted to $42.2 million, representing 15.2% of total assets as of December 31, 2024[70] - Total investment securities decreased by $41.8 million, or 49.8%, to $42.2 million as of December 31, 2024, compared to $84.0 million in 2023[212] - The largest component of the investment securities portfolio was pass-through mortgage-backed securities totaling $27.2 million[70] - The company sold 50 available-for-sale investment securities during 2024, resulting in a total loss of $5.5 million[70] Capital and Regulatory Compliance - Catalyst Bank's capital exceeded all applicable regulatory requirements as of December 31, 2024[97] - Catalyst Bank is considered "well capitalized" as of December 31, 2024, meeting the criteria with a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, and a common equity Tier 1 ratio of 6.5% or greater[116] - Catalyst Bancorp is subject to the FRB's capital adequacy guidelines, with a threshold for the "small bank holding company" exception increased to $3.0 billion, meaning it is not subject to capital requirements until consolidated assets exceed this amount[136] - The company requires a minimum debt service coverage ratio of 125% for commercial and industrial loans[47] - Catalyst Bank is in compliance with the loans-to-one borrower limitations, which restrict loans to a single borrower to 15% of unimpaired capital and surplus[102] Strategic Initiatives - Catalyst Bancorp's strategy has shifted to focus on attracting small- to mid-sized businesses and increasing holdings of commercial and multi-family residential real estate loans[20] - The company aims to grow its loan portfolio with greater diversification, focusing on commercial lending[179] - A new core processing system was implemented in the first quarter of 2024 to enhance technology tools and online services[179] - Catalyst Bancorp may consider future acquisitions of banking and financial services companies, although no agreements are currently in place[13] - The company plans to expand through potential acquisitions of other financial institutions in its market area[179] Taxation and Legal Compliance - Catalyst Bancorp is subject to federal income taxation in the same manner as other corporations, with specific exceptions noted[145] - The Louisiana Corporation Income Tax for 2024 applies at graduated rates from 3.5% on the first $50,000 of taxable income to 7.5% on income exceeding $150,000, with a flat rate of 5.5% starting in 2025[151] - The Sarbanes-Oxley Act of 2002 aims to improve corporate responsibility and enhance penalties for accounting improprieties at publicly traded companies[142] - The Gramm-Leach-Bliley Act of 1999 allows qualifying bank holding companies to engage in a broader array of financial activities, including insurance underwriting and investment banking[135]

Financial Performance - Net income for the fourth quarter of 2024 was $626,000, an increase of $179,000, or 40%, compared to the third quarter of 2024[1]. - Net income for Q4 2024 was $626,000, a significant increase from $307,000 in Q4 2023[35]. - The return on average assets for Q4 2024 was 0.91%, up from 0.47% in Q4 2023[35]. - The efficiency ratio improved to 72.54% in Q4 2024 from 81.07% in Q4 2023[35]. Loan and Deposit Growth - The loan portfolio increased by a record $22.2 million, or 15%, for the year, totaling $167.1 million at December 31, 2024[2]. - Total deposits increased by $18.2 million, or 11%, to $185.7 million at December 31, 2024, largely due to a seasonal increase in public funds[11]. - Total loans increased to $167,187,000 in Q4 2024 from $140,757,000 in Q4 2023, representing a growth of 19%[35]. - Loans receivable, net of unearned income, were $167.1 million as of December 31, 2024, compared to $165.9 million in Q3 2024[30]. Interest Income and Margin - The net interest margin for the fourth quarter of 2024 was 3.92%, up six basis points compared to the prior quarter[16]. - The net interest margin for Q4 2024 was 3.92%, compared to 3.86% in Q3 2024[30]. - Total interest income for Q4 2024 was $3,511,000, an increase of 35% compared to $2,603,000 in Q4 2023[33]. - Net interest income for the fourth quarter of 2024 was $2.5 million, down $60,000, or 2%, compared to the third quarter of 2024[17]. - Net interest income after provision for credit losses for Q4 2024 was $2,472,000, up from $1,816,000 in Q4 2023, reflecting a 36% increase[33]. Non-Interest Income and Expense - For Q4 2024, non-interest income totaled $337,000, down $283,000 from $620,000 in Q3 2024[21]. - Total non-interest income for Q4 2024 was $337,000, a decrease from $672,000 in Q4 2023, resulting in a loss of $3,840,000 for the year[35]. - Non-interest expense for Q4 2024 was $2.0 million, a decrease of $222,000 or 10% compared to Q3 2024[22]. - Total non-interest expense for Q4 2024 was $2,038,000, compared to $2,122,000 in Q4 2023, indicating a reduction of 4%[35]. Asset Quality - Non-performing assets (NPAs) totaled $1.8 million, up $214,000, or 13%, from the previous quarter, with a ratio of NPAs to total assets at 0.66%[6]. - The allowance for loan losses totaled $2.5 million, or 1.51% of total loans, compared to $2.4 million, or 1.46% of total loans, in the previous quarter[7]. - The allowance for loan losses increased to $2.522 million in Q4 2024 from $2.414 million in Q3 2024[30]. - Total allowance for credit losses at the end of Q4 2024 was $2,643,000, compared to $2,381,000 at the end of Q4 2023[37]. - Total non-performing loans to total loans ratio was 0.98% in Q4 2024, an increase from 0.87% in Q4 2023[37]. Shareholder Equity and Stock Repurchase - Total shareholders' equity decreased to $80.2 million as of December 31, 2024, from $81.7 million in Q3 2024[30]. - The Company repurchased 120,977 shares of common stock at an average cost per share of $11.70 during the fourth quarter of 2024[15]. Investment Securities - Total investment securities were $42.2 million, or 15% of total assets, down $3.5 million, or 8%, compared to the previous quarter[9]. - The ratio of total loans to total deposits was 90% at December 31, 2024, compared to 99% at September 30, 2024[11].

Financial Performance - Net income for the three months ended September 30, 2024, was $447,000, up $296,000, or 196.0%, compared to the same period in 2023[116]. - The company reported a net loss of $3.7 million for the nine months ended September 30, 2024, compared to net income of $219,000 for the same period in 2023[116]. - For the three months ended September 30, 2024, the company reported net income of $447,000, compared to $151,000 for the same period in 2023[149]. - For the nine months ended September 30, 2024, the Company reported a net loss of $3.7 million, compared to net income of $219,000 for the same period in 2023[163]. - The Company reported an income tax benefit of $1.0 million for the nine months ended September 30, 2024, compared to an income tax expense of $2,000 for the same period in 2023[175]. Asset and Loan Growth - Total assets increased by $9.7 million, or 3.6%, to $280.6 million at September 30, 2024, from $270.9 million at December 31, 2023[116]. - Loans increased by $21.0 million, or 14.5%, to $165.9 million at September 30, 2024, compared to December 31, 2023[116]. - Total loans at the end of the period were $165,882,000, an increase from $135,672,000 at December 31, 2023[127]. - Total loans composition showed a significant increase in construction and land loans by $16.5 million, or 118.7%, to $30.3 million at September 30, 2024[123]. Non-Performing Assets - Non-performing assets decreased by $440,000, or 21.5%, to $1.6 million at September 30, 2024, from December 31, 2023[116]. - Total non-performing loans decreased to 1,438, down from 1,991 at December 31, 2023[129]. Revenue and Income Sources - Total commercial real estate revenue increased by $1,226,000, or 5.7%, to $22,704,000 compared to $21,478,000 in the previous period[124]. - Multi-family residential revenue surged by $6,947,000, or 494.1%, reaching $8,353,000, up from $1,406,000[124]. - Total construction and land revenue rose by $16,453,000, or 118.7%, totaling $30,310,000 compared to $13,857,000[124]. - Oilfield services revenue increased by $7,756,000, or 124.0%, to $14,010,000 from $6,254,000[124]. Interest Income and Expense - Net interest income for the three months ended September 30, 2024, was $2.5 million, up $584,000, or 30.0%, compared to the same period in 2023[116]. - Total interest income rose by $1.2 million, or 48.7%, to $3.7 million for the three months ended September 30, 2024[150]. - Total interest income increased by $3.3 million, or 46.7%, to $10.4 million for the nine months ended September 30, 2024[166]. - Total interest expense increased by $618,000, or 118.6%, to $1.1 million for the three months ended September 30, 2024[154]. - Total interest expense increased by $2.0 million, or 152.7%, to $3.3 million for the nine months ended September 30, 2024[170]. Non-Interest Income and Expenses - Non-interest income totaled $620,000, up $314,000, or 102.6%, compared to the same period in 2023[157]. - Non-interest expense for the three months ended September 30, 2024, was $2.3 million, up $179,000, or 8.6%, compared to the same period in 2023[116]. - Non-interest expense totaled $7.1 million for the nine months ended September 30, 2024, up $662,000, or 10.3%, compared to the same period in 2023[174]. - Non-interest income decreased by $5.1 million for the nine months ended September 30, 2024, primarily due to a $5.5 million loss on the sales of investment securities[173]. Deposits and Borrowings - Deposits increased by $1.8 million, or 1.1%, to $167.4 million at September 30, 2024, compared to December 31, 2023[116]. - Total deposits reached $167.436 million, reflecting a 1.1% increase from $165.622 million as of December 31, 2023[136]. - Total borrowings increased to $29.5 million, up $10.1 million from December 31, 2023, with a $20.0 million BTFP advance at a 4.76% interest rate[139]. Equity and Share Repurchase - Shareholders' equity totaled $81.7 million, representing 29.1% of total assets, down from $84.6 million or 31.2% at December 31, 2023[141]. - The company repurchased 362,199 shares at an average cost of $11.98 per share during the nine months ended September 30, 2024[142]. Liquidity - As of September 30, 2024, the Company had total unused and available liquidity of $71.7 million[182].

Financial Performance - Net income for the third quarter of 2024 was $447,000, down $80,000 from $527,000 in the second quarter of 2024[1]. - Net income for Q3 2024 was $447,000, compared to a net income of $151,000 in Q3 2023, indicating a year-over-year increase of 195.4%[28]. - Net interest income for the third quarter of 2024 was $2.5 million, up $84,000, or 3%, compared to the second quarter of 2024[15]. - Net interest income after provision for credit losses was $2,195,000 for Q3 2024, compared to $1,948,000 in Q3 2023, reflecting a 12.7% increase[26]. - Total non-interest income for Q3 2024 was $620,000, up from $306,000 in Q3 2023, marking a significant increase of 102.6%[28]. - Total non-interest expense for Q3 2024 was $2,260,000, slightly higher than $2,081,000 in Q3 2023, representing an increase of 8.6%[28]. Asset and Loan Growth - The loan portfolio grew by a record $12.6 million, or 8%, totaling $165.9 million at September 30, 2024[1][2]. - Loans receivable, net of unearned income, increased to $165.882 million as of September 30, 2024, compared to $153.266 million at June 30, 2024[24]. - Total loans as of September 30, 2024, were $161,410,000, an increase from $134,851,000 in the same period last year, reflecting a growth of 19.7%[28]. Deposits and Equity - Total deposits were $167.4 million, down $12.6 million, or 7%, from June 30, 2024[10]. - Total deposits decreased to $167.436 million as of September 30, 2024, from $180.065 million at June 30, 2024[24]. - Shareholders' equity increased to $81.667 million as of September 30, 2024, compared to $81.013 million at June 30, 2024[24]. - Total shareholders' equity increased to $81,307,000 as of September 30, 2024, compared to $80,965,000 at the end of Q2 2024[28]. Interest and Yield - The net interest margin for the third quarter of 2024 was 3.86%, an increase of 14 basis points from the prior quarter[15]. - The average yield on loans receivable was 6.70% for Q3 2024, up from 6.38% in Q2 2024[17]. - Total interest income for Q3 2024 was $3,671,000, an increase of 48.7% compared to $2,469,000 in Q3 2023[26]. - For Q3 2024, total interest-earning assets amounted to $261.069 million, generating net interest income of $2.532 million with an average yield of 2.94%[17]. Non-Performing Assets and Loan Losses - Non-performing assets (NPAs) decreased to $1.6 million, with a ratio of NPAs to total assets at 0.57%[5]. - Total non-performing loans decreased to $1,438,000, down from $1,600,000 in the previous quarter[31]. - The total non-performing loans to total loans ratio improved to 0.87%, compared to 1.04% in the prior quarter[31]. - The allowance for loan losses was $2.4 million, or 1.46% of total loans, compared to 1.45% in the previous quarter[6]. - The allowance for loan losses increased to $2,414,000 at the end of the period, up from $2,215,000 in the previous quarter[31]. - The provision for loan losses was $330,000 for the quarter, compared to a reversal of $62,000 in the prior quarter[31]. Operational Changes - The company upgraded to a new core processing system in Q1 2024, contributing to a significant rise in data processing expenses in Q3 2024[19]. - Non-interest expense for Q3 2024 totaled $2.3 million, up $192,000 or 9% compared to Q2 2024, driven by a 5% increase in salaries and a 72% rise in data processing expenses[19]. Company Overview - Catalyst Bancorp, Inc. operates six full-service branches in the Acadiana region of Louisiana, focusing on commercial and retail banking products[20].

Financial Position - Total assets increased by $24.4 million, or 9.0%, to $295.3 million at June 30, 2024, from $270.9 million at December 31, 2023[102] - Loans amounted to $153.3 million, or 51.9% of total assets, at June 30, 2024, up $8.3 million or 5.8% from December 31, 2023[96] - Non-performing assets decreased by $347,000, or 16.9%, to $1.7 million at June 30, 2024, from December 31, 2023[96] - Deposits rose by $14.4 million, or 8.7%, to $180.1 million at June 30, 2024, compared to December 31, 2023[96] - Investment securities decreased by $40.8 million, or 48.6%, to $43.2 million at June 30, 2024, from December 31, 2023[96] - Borrowings increased by $10.9 million, or 56.2%, to $30.3 million at June 30, 2024, compared to December 31, 2023[96] - Shareholders' equity decreased by $3.5 million, or 4.2%, to $81.0 million, representing 27.4% of total assets as of June 30, 2024[118] - Total uninsured deposits rose to approximately $52.7 million at June 30, 2024, up from $44.6 million at December 31, 2023[117] Income and Expenses - Net interest income for the three months ended June 30, 2024, was $2.4 million, up $574,000, or 30.6%, compared to the same period in 2023[96] - Non-interest expense for the three months ended June 30, 2024, was $2.1 million, down $123,000, or 5.6%, compared to the same period in 2023[96] - The company reported a net income of $527,000 for the three months ended June 30, 2024, but a net loss of $4.2 million for the six months ended June 30, 2024[96] - Total interest income rose by $1.2 million, or 51.8%, to $3.5 million for the three months ended June 30, 2024[128] - Total interest expense increased by $629,000, or 140.4%, to $1.1 million for the three months ended June 30, 2024[130] - Non-interest income totaled $366,000, up $49,000 or 15.5% compared to the same period in 2023[132] - Non-interest income for the six months ended June 30, 2024, was down $5.4 million compared to $611,000 for the same period in 2023[138] - Non-interest expense totaled $4.9 million for the six months ended June 30, 2024, up $483,000, or 11.0%, compared to the same period in 2023[138] Loan Performance - The allowance for loan losses was $2.2 million, or 1.45% of total loans, a slight decrease from 1.47% at December 31, 2023[105] - Total non-performing loans decreased to $1,600,000 from $1,991,000 at December 31, 2023[109] - The total provision for credit losses on loans was $194,000 for the six months ended June 30, 2024, compared to no provision for the same period in 2023[137] - The provision for credit losses was $99,000 for the three months ended June 30, 2024, compared to no provision in the same period of 2023[131] Revenue Growth - Total commercial real estate revenue increased by $1,593,000, or 7.4%, to $23,071,000 compared to $21,478,000 in December 2023[104] - Multi-family residential revenue surged by $4,282,000, or 304.6%, reaching $5,688,000, up from $1,406,000 in December 2023[104] - Total construction and land revenue rose by $6,570,000, or 47.4%, totaling $20,427,000 compared to $13,857,000 in December 2023[104] - Oilfield services revenue increased by $4,128,000, or 66.0%, to $10,382,000 from $6,254,000 in December 2023[104] Interest Rates and Yields - The average rate paid on interest-bearing deposits was 2.16% during the three months ended June 30, 2024, up 103 basis points compared to the same period in 2023[130] - The average rate paid on interest-bearing deposits was 2.14% during the six months ended June 30, 2024, up 121 basis points compared to the same period in 2023[136] - The average loan yield was 6.38% for the three months ended June 30, 2024, up from 5.09% for the same period in 2023[128] - The weighted average yield on mortgage-backed securities was 4.48% for the period[113] Liquidity and Capital Management - Total unused and available liquidity was $59.3 million as of June 30, 2024[144] - The company expects to retain the majority of maturing certificates of deposit, but may utilize borrowings or raise interest rates if a substantial portion is not retained[147]

Financial Performance - Catalyst Bancorp reported net income of $527,000 for Q2 2024, a significant recovery from a net loss of $4.7 million in Q1 2024[2]. - For Q2 2024, net interest income was $2.4 million, an increase of $355,000 or 17% compared to Q1 2024[39]. - Non-interest income for Q2 2024 totaled $366,000, up $5.5 million from Q1 2024, which included a $5.5 million loss on the sale of investment securities[28]. - Net income for the three months ended June 30, 2024, was $527,000, a turnaround from a loss of $4,689,000 in the previous quarter[47]. - Return on average assets improved to 0.74% for the three months ended June 30, 2024, compared to a negative return of (6.58)% in the previous quarter[47]. - Return on average equity was 2.62% for the three months ended June 30, 2024, compared to (22.81)% in the previous quarter, indicating a positive trend[47]. Loan and Deposit Growth - Total loans increased by $9.8 million, or 7%, to $153.3 million as of June 30, 2024, compared to March 31, 2024[16]. - Total deposits reached $180.1 million, an increase of $10.4 million, or 6%, from March 31, 2024[6]. - Commercial and industrial loans surged by $8.2 million, or 52%, to $23.9 million compared to the previous quarter[3]. - Loans receivable, net of unearned income, increased to $153,266,000 as of June 30, 2024, from $143,491,000 as of March 31, 2024[32]. - Total loans increased to $150,257,000 for the six months ended June 30, 2024, up from $144,428,000 in the previous period[47]. Asset Management - Total assets as of June 30, 2024, were $295,333,000, an increase from $282,049,000 as of March 31, 2024[32]. - Total investment securities amounted to $43.2 million, or 14.6% of total assets, reflecting a $4.2 million increase, or 10.8%, from March 31, 2024[21]. - Total assets slightly decreased to $285,773,000 as of June 30, 2024, from $286,708,000 in the previous quarter[47]. - Catalyst Bancorp, Inc. reported total assets of $295.3 million as of June 30, 2024[50]. Interest Income and Margin - The net interest margin for Q2 2024 was 3.72%, up 60 basis points from the prior quarter[9]. - The average yield on interest-earning assets increased to 5.35%, up 65 basis points from the prior quarter[9]. - Total interest income for the three months ended June 30, 2024, was $3,525,000, an increase of 11.7% from $3,155,000 for the previous quarter[46]. - Total interest income rose by $370,000 or 12%, while total interest expense increased by $15,000 or 1% in Q2 2024 compared to the previous quarter[39]. - The average yield on total interest-earning assets was 5.35% for Q2 2024, up from 4.70% in Q1 2024[1]. Non-Performing Assets - Non-performing assets totaled $1.7 million, with a ratio of NPAs to total assets at 0.58% as of June 30, 2024[19]. - Total non-performing loans amounted to $1,600,000, up from $1,482,000 in the previous quarter[49]. - The total non-performing loans to total loans ratio was 1.04% as of June 30, 2024, compared to 1.03% in the previous quarter[49]. - Total non-performing assets were $1,704,000, slightly down from $1,719,000 in the previous quarter[49]. Expenses and Shareholder Equity - Non-interest expense for Q2 2024 was $2.1 million, down $723,000 or 26% from Q1 2024[41]. - Total non-interest expense decreased to $2,068,000 for the three months ended June 30, 2024, down from $2,791,000 in the previous quarter, representing a 25.8% reduction[47]. - Total shareholders' equity was $80,965,000 as of June 30, 2024, down from $82,667,000 in the previous quarter[47]. - The allowance for loan losses was $2.2 million, representing 1.45% of total loans, slightly up from 1.44% in the previous quarter[4].

Financial Position - As of March 31, 2024, the carrying amount of cash and cash equivalents is $76,011,000, which approximates its fair value[94]. - Loans receivable, net, have a carrying amount of $141,423,000, with a fair value of $135,986,000, classified within Level 3 of the fair value hierarchy[94]. - The total deposits amount to $169,637,000, with a fair value of $168,812,000[94]. - The fair value of bank-owned life insurance is reported at $14,139,000, classified within Level 2 of the fair value hierarchy[94]. - The fair value of available-for-sale investment securities is $25,534,000, while held-to-maturity securities have a fair value of $11,127,000[94]. Corporate Structure - The company completed its conversion from mutual to stock form on October 12, 2021, acquiring all outstanding shares of common stock of the Bank[83]. Legal and Regulatory Matters - The company has no pending legal proceedings that would materially affect its financial condition as of March 31, 2024[184]. Internal Controls and Procedures - The company’s disclosure controls and procedures were deemed effective as of March 31, 2024, with no changes affecting internal control over financial reporting[183]. Forward-Looking Statements - The company emphasizes the importance of not placing undue reliance on forward-looking statements due to inherent uncertainties[99]. - The company’s financial estimates are subjective and based on judgments regarding future expected loss experience and current economic conditions[91].

Financial Performance - Catalyst Bancorp reported a net loss of $4.7 million for Q1 2024, including a $5.5 million loss on the sale of investment securities[1]. - Net income (loss) for the period was $(4,677,000), compared to a profit of $320,000 in the previous quarter and $73,000 in the same period last year[54]. - Non-interest expense increased by 32% to $2.8 million in Q1 2024, primarily due to a $560,000 upgrade to a new core processing system[39]. - Total non-interest income recorded a loss of $(5,163,000), a significant decline from a gain of $672,000 in the previous quarter and $294,000 in the same period last year[54]. - Total non-interest expense rose to $2,791,000, an increase of 31.5% from $2,122,000 in the previous quarter and 27.8% from $2,185,000 year-over-year[54]. - Return on average assets was (6.57)%, down from 0.49% in the previous quarter, indicating a decline in profitability[54]. - The efficiency ratio was reported at (91.37)%, compared to 80.61% in the previous quarter, reflecting increased operational costs[54]. Loan and Asset Management - Total loans amounted to $143.5 million, down $1.4 million, or less than 1%, from December 31, 2023[8]. - Loans receivable net of unearned income were $143.5 million, a slight decrease from $144.9 million at the end of 2023[51]. - Total loans increased to $144,428,000, up 2.4% from $140,757,000 in the previous quarter and 7.9% from $133,781,000 year-over-year[54]. - Non-performing assets decreased by $331,000, or 16.1%, to $1.7 million as of March 31, 2024, with a non-performing loans ratio of 1.03%[3]. - Non-performing loans totaled $1,482,000, a decrease from $1,991,000 in the previous quarter and $1,687,000 year-over-year, indicating improved credit quality[55]. - The allowance for loan losses was $2.1 million, or 1.44% of total loans, slightly down from 1.47% at the end of 2023[11]. - The allowance for credit losses at the end of the period was $2,378,000, slightly down from $2,381,000 in the previous quarter and up from $2,286,000 year-over-year[55]. Income and Interest Metrics - Net interest income for Q1 2024 was $2.1 million, an increase of $148,000, or 8%, compared to the previous quarter[20]. - Net interest income for the first quarter of 2024 was $2.1 million, with a net interest margin of 3.15% compared to 3.14% in the previous quarter[37]. - Net interest income after provision for credit losses was $2,013,000, a 9.9% increase from $1,832,000 in the previous quarter and a 2.4% increase from $1,966,000 year-over-year[52]. - Total interest income increased to $3,155,000 for the three months ended March 31, 2024, up 21.2% from $2,603,000 in the previous quarter and 39.1% from $2,267,000 in the same period last year[52]. - Total interest-earning assets amounted to $269.6 million, with an average yield of 4.71%, up from 4.17% in the previous quarter[37]. - The net interest margin for Q1 2024 was 3.15%, up one basis point from the prior quarter[36]. Deposits and Equity - Total deposits increased by $4.0 million, or 2%, to $169.6 million as of March 31, 2024[31]. - Total deposits increased to $169.6 million, compared to $165.6 million in the previous quarter[51]. - Total shareholders' equity decreased to $81.4 million from $84.7 million at the end of 2023[51]. Securities and Investments - The company sold $48.0 million of available-for-sale securities for a pre-tax loss of $5.5 million, generating $42.6 million in cash for reinvestment[30]. - Total investment securities decreased by $45.0 million, or 53.6%, to $39.0 million, representing 13.8% of total assets[30]. - Total assets of Catalyst Bancorp, Inc. reached $282.0 million as of March 31, 2024, an increase from $270.9 million at the end of 2023[40]. Operational Changes - The company announced a new share repurchase plan allowing the purchase of up to 227,000 shares, approximately 5% of outstanding shares[18]. - The company expects annual savings of over $200,000 from the new core processing system[39]. - Catalyst Bank operates six full-service branches in the Acadiana region, focusing on commercial and retail banking products[40].