Executive Summary

Q2 2025 net income was $0.521M and diluted EPS was $0.14; results were broadly flat year over year ($0.527M, $0.13) and down sequentially from Q1 ($0.586M, $0.16) .
Net interest margin expanded 9 bps QoQ to 3.98% as asset yields rose and deposit costs fell (avg rate on interest-bearing liabilities down 5 bps to 2.51%) .
Non-interest income fell 38% QoQ due to the absence of Q1’s one-time insurance proceeds; efficiency ratio worsened modestly to 77.46% (vs. 75.31% in Q1) .
Loans and deposits grew modestly; non-interest-bearing demand deposits rose 19% QoQ and the company continued buybacks (62,385 shares at $11.91) .
No formal guidance or consensus estimates were available; near-term stock narrative likely driven by NIM expansion, deposit mix, and ongoing capital returns .

What Went Well and What Went Wrong

What Went Well
- “We’re pleased to see both loan and deposit growth during the quarter… Our team continues to build momentum across our markets.” — Joe Zanco, President & CEO .
- Net interest margin improved to 3.98% QoQ; average yield on interest-earning assets increased to 5.58%, while average rate on interest-bearing liabilities decreased to 2.51% .
- Non-interest-bearing demand deposits increased $5.1M (+19% QoQ), supporting funding mix and stabilizing loan-to-deposit ratio at 92% .
What Went Wrong
- Non-interest income declined to $0.344M (-38% QoQ) as Q1 benefited from $0.216M insurance proceeds that did not repeat in Q2 .
- Efficiency ratio deteriorated to 77.46% (vs. 75.31% in Q1), reflecting lower non-interest income and steady OpEx .
- NPLs and NPAs ticked up slightly (NPLs 1.00% of loans; NPAs 0.64% of assets), still concentrated in one- to four-family mortgages .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Total Revenue ($USD Millions)	$2.814	$2.918	$2.812
Net Income ($USD Millions)	$0.527	$0.586	$0.521
Diluted EPS ($USD)	$0.13	$0.16	$0.14
Net Interest Margin (TE, %)	3.72	3.89	3.98

Revenue vs estimates: No formal S&P Global consensus was available for Q2 2025 (see Estimates Context).
Sequential change drivers: asset yields up 4 bps, deposit costs down 5 bps; non-interest income declined due to non-repeat insurance proceeds .

Segment/KPI detail

Loan Portfolio Composition ($USD Thousands)

Category	Q1 2025 (3/31/2025)	Q2 2025 (6/30/2025)	QoQ Change
One- to four-family residential	$82,025	$80,195	$(1,830)
Commercial real estate	$22,103	$33,976	$11,873
Construction and land	$32,038	$20,650	$(11,388)
Multi-family residential	$2,530	$5,432	$2,902
Commercial & industrial	$25,447	$25,035	$(412)
Consumer	$1,934	$2,281	$347
Total Loans	$166,077	$167,569	$1,492

Deposit Composition ($USD Thousands)

Category	Q1 2025 (3/31/2025)	Q2 2025 (6/30/2025)	QoQ Change
Non-interest-bearing demand	$26,093	$31,155	$5,062
Interest-bearing demand	$42,737	$35,307	$(7,430)
Money market	$9,737	$9,437	$(300)
Savings	$42,542	$51,001	$8,459
Certificates of deposit	$59,489	$55,311	$(4,178)
Total Deposits	$180,598	$182,211	$1,613

Credit KPIs

KPI	Q2 2024	Q1 2025	Q2 2025
NPLs / Total Loans (%)	1.04	0.99	1.00
NPAs / Total Assets (%)	0.58	0.63	0.64
ACL on Loans ($USD Millions)	$2.215	$2.500	$2.431
Net Charge-offs ($USD Thousands)	$(38)	$(39)	$(42)
Efficiency Ratio (%)	73.47	75.31	77.46

Guidance Changes

No formal quantitative guidance was provided in the Q2 2025 materials. Forward-looking statements sections reiterate risk factors but do not set ranges for revenue, margins, OpEx, or tax rates .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q3	Not provided	Not provided	Maintained (no guidance)
NIM/Margins	FY/Q3	Not provided	Not provided	Maintained (no guidance)
OpEx	FY/Q3	Not provided	Not provided	Maintained (no guidance)
Tax Rate	FY/Q3	Not provided	Not provided	Maintained (no guidance)
Dividends	FY/Q3	Not provided	Not provided	Maintained (no guidance)

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was available in the document catalog [List: earnings-call-transcript not found].

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Net interest margin	Q4: NIM 3.92%, aided by BTFP payoff; Q1: 3.89% with lower asset yields	NIM rose to 3.98% as asset yields +4 bps and deposit costs −5 bps	Improving QoQ
Deposits/public funds	Q4: deposits +11% seasonal public funds; Q1: deposits −3%, public funds 17%	Deposits +1%; public funds 16% with mix shifting to savings	Stabilizing; mix shift
Credit quality	Q4: NPLs 0.98%; Q1: 0.99%, resi-driven	NPLs 1.00%, NPAs 0.64%; 99% resi mortgages	Slight uptick; contained
Share repurchases	Q4: 120,977 shares @ $11.70; Q1: 72,949 shares @ $11.86	62,385 shares @ $11.91; 22% of original float retired to date	Ongoing capital return
Community/impact	N/A	Post-Q2: $2M AHP grant for transitional housing in Opelousas (The Rig)	Continued local engagement

Management Commentary

“We’re pleased to see both loan and deposit growth during the quarter… Our team continues to build momentum across our markets.” — Joe Zanco, President & CEO .
Q2 operating drivers: “Total interest income was up… largely due to an increase in income on loans. Total interest expense decreased… due to a decline in the cost of deposits.” .
Credit commentary: Charge-offs remained modest and primarily in residential mortgages/overdrawn accounts; provision was zero in Q1 and Q2 .

Q&A Highlights

No public earnings call transcript available for Q2 2025; no Q&A disclosures found [List: earnings-call-transcript not found].

Estimates Context

Consensus availability: S&P Global shows no formal EPS or revenue consensus for CLST in Q2 2025; number of estimates unavailable.
S&P Global actual revenue alignment: Actual total revenue for Q2 2025 was $2.812M (Net interest income + non-interest income), consistent with company’s reported components .
Implication: With no published consensus, estimate revisions are unlikely to be a near-term stock driver; narrative centers on NIM trajectory, deposit mix, and credit quality.

Metric	Q2 2025 Consensus	# of Estimates	Actual (S&P Global)*
Revenue ($USD Millions)	N/A	N/A	2.812
EPS ($USD)	N/A	N/A	0.14 (company-reported)

*Values retrieved from S&P Global.

Key Takeaways for Investors

NIM expansion alongside lower deposit costs is the core positive; monitor further asset yield gains and deposit repricing into Q3 .
Funding mix improved (higher non-interest-bearing and savings), which should support spread stability if public funds volatility remains contained .
Non-interest income normalization (no insurance proceeds) and a higher efficiency ratio highlight ongoing need for fee growth and operating leverage .
Credit metrics edged up but remain manageable and concentrated in residential mortgages; provisioning was zero and ACL coverage remains stable .
Continued buybacks (62,385 shares in Q2; ~22% of original float retired since 2023) provide a capital return and potential EPS support .
With no formal guidance or consensus, the stock’s near-term narrative is driven by NIM, deposit mix, credit, and capital return cadence rather than “beat/miss” headlines .
Watch Q3 deposit composition and loan growth (commercial real estate and multi-family shifts) to assess sustainability of NIM and fee opportunities .

Catalyst Bancorp, Inc. (CLST)·Q2 2025 Earnings Summary