CLST · Catalyst Bancorp, Inc.

Catalyst Bancorp reported improved net income of $558,000 or $0.15 diluted EPS for the first quarter of 2026, up from $456,000 or $0.13 in the prior quarter, driven by higher net interest income of $2.5 million despite a compressed net interest margin of 3.83%, down 8 basis points. The margin contraction reflected a 17 basis point drop in average yield on interest-earning assets to 5.36%, partially offset by a 15 basis point decline in the cost of interest-bearing liabilities to 2.35%, aided by payoff of a short-term Federal Home Loan Bank advance. Interest income rose modestly due to higher cash balances from deposit inflows, offsetting lower loan interest from a $6.5 million loan decline, primarily a $5.9 million commercial and industrial payoff. Non-interest income dipped 3% to $352,000 on lower service charges, while non-interest expense increased 3% to $2.3 million, including $95,000 in professional fees for the Lakeside Bancshares acquisition. Deposits grew 5% to $195.4 million, improving the loan-to-deposit ratio to 84% from 92%, with public funds averaging higher due to seasonality. Credit quality remained stable with NPAs at 0.94% of assets and a $70,000 provision reversal, reflecting loan balance declines. Management highlighted team focus on organic growth and Lakeside integration preparations, pausing share repurchases temporarily but expecting resumption in Q2 under the November 2025 plan with 172,297 shares remaining.