Catalyst Bancorp, Inc. (CLST)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 net income rose 40% sequentially to $0.63M ($0.16 diluted EPS), driven by lower interest expense and noninterest expense; NIM expanded to 3.92% from 3.86% .
• Total deposits increased 11% QoQ to $185.7M on seasonal public fund inflows; loan-to-deposit ratio fell to 90% from 99%, improving funding mix .
• The Bank repaid its $20.0M BTFP advance, reducing borrowings to $9.6M and helping lower interest expense (down 9% QoQ) .
• Credit metrics remained stable: NPLs/Loans 0.98% vs. 0.87% QoQ; NPAs/Assets 0.66% vs. 0.57%; allowance for loan losses increased to $2.52M (1.51% of loans) .
• No formal guidance or call transcript available; ongoing share repurchases (121k shares in Q4) and strong capital ratios provide flexibility and potential stock support .

What Went Well and What Went Wrong

What Went Well

• Net interest margin expanded 6 bps QoQ to 3.92% as deposit costs fell and borrowings were reduced; average rate on interest-bearing liabilities fell 9 bps QoQ (2.57% vs. 2.66%) .
• Funding mix improved with deposits up $18.2M QoQ and loan-to-deposit ratio declining to 90%, easing liquidity pressure .
• Noninterest expense dropped 10% QoQ ($2.04M vs. $2.26M) on lower data processing, professional fees, and fraud/collection-related expenses, supporting operating leverage .
• CEO quote: “For the year, the loan portfolio increased a record $22.2 million, or 15%” highlighting sustained loan growth momentum .
• Strategic execution: $20.0M BTFP repayment reduced collateral pledges and balance sheet complexity .

What Went Wrong

• Total interest income declined 4% QoQ ($3.51M vs. $3.67M) as interest-earning cash was used to retire the BTFP advance, reducing other interest-earning assets .
• Noninterest income fell to $0.34M from $0.62M QoQ due to the absence of the prior quarter’s $0.28M BEA grant .
• Credit metrics ticked up modestly: NPLs/Loans increased to 0.98% (from 0.87%) primarily from non-accruing residential mortgage loans; NPAs/Assets rose to 0.66% .

Financial Results

Income Statement and Margins (GAAP)

Note: “Revenue” is not presented by the company; investors typically use net interest income and noninterest income for banks .

Balance Sheet and Credit KPIs

Deposits Mix

Loan Composition

Guidance Changes

Note: The company did not issue quantitative guidance in the 8‑K/press release; no earnings call transcript is available and –; ListDocuments shows no transcript [ListDocuments].

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript available; themes below reflect management’s press release commentary.

Management Commentary

• “Our loan growth momentum continued during the fourth quarter… For the year, the loan portfolio increased a record $22.2 million, or 15%.” — Joe Zanco, President & CEO .
• “Given our incredibly strong capital base, we are well positioned to continue our growth as the South Louisiana economy gains momentum.” — Joe Zanco .
• On operating efficiency: “Data processing and communication expense… decline… driven by our transition to a new internet provider and a new contract for our loan document management solution.” .
• Strategic posture and buybacks: Board approved fifth share repurchase plan; 972,916 shares repurchased since Jan 2023 through Nov 22, 2024 (~18% of original issue) .

Q&A Highlights

No earnings call transcript found for Q4 2024; therefore, no Q&A highlights or guidance clarifications are available [ListDocuments shows 0 transcripts for CLST].

Estimates Context

• S&P Global consensus EPS and revenue estimates for Q4 2024 and Q3 2024 were unavailable due to service limits; no estimate comparison can be provided at this time (values unavailable; S&P Global).
• Implications: In the presence of coverage, models would likely reflect positive NIM momentum (3.92%) and lower interest expense post‑BTFP repayment, offset by softer noninterest income without the BEA grant .

Key Takeaways for Investors

• Margin trend constructive: NIM expanded to 3.92% and liability costs fell, benefiting spread and supporting earnings durability into early 2025 .
• Funding mix improved: Deposits rose 11% QoQ (public funds seasonal), loan‑to‑deposit ratio eased to 90%, and borrowings dropped materially post‑BTFP repayment—lowering interest expense run‑rate .
• Credit quality stable but watchlist items: slight uptick in NPLs/Loans (0.98%) largely in residential mortgages; allowance coverage increased to 1.51% of loans; net charge‑offs minimal ($2k) .
• Operating discipline: Noninterest expense fell 10% QoQ with tangible reductions in data processing and professional fees, underpinning efficiency ratio near 73% .
• Capital deployment: Active buybacks (121k shares in Q4) and strong capital ratios provide optionality; ongoing repurchase capacity under the November 2024 plan is a potential stock support .
• Revenue line sensitivity: Expect lower other interest income vs. Q3 given reduction in interest‑earning cash post debt repayment; monitor loan growth and deposit mix to offset .
• Near‑term trading: Seasonal deposit inflows and spread improvement are incremental positives; absence of guidance and call transcript limits near‑term catalysts outside continued buybacks and reported NIM/credit trends .