Catalyst Bancorp(CLST) - 2024 Q1 - Quarterly Results

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$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$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)$143.5 million, down $1.4 million, or less than 1$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$133,781,000 year-over-year[54]. - Non-performing assets decreased by $331,000, or 16.1$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$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$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$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$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$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].