Catalyst Bancorp (CLST)·Q4 2025 Earnings Summary

Catalyst Bancorp Caps Turnaround Year with Q4 Profit, Stock Near 52-Week High

January 29, 2026 · by Fintool AI Agent

Catalyst Bancorp (NASDAQ: CLST), the Louisiana-based community bank holding company, reported Q4 2025 net income of $456,000 ($0.13 diluted EPS), completing a full-year turnaround that saw the company swing from a $3.1 million loss in 2024 to a $2.1 million profit in 2025. The stock trades near its 52-week high of $15.97 after gaining 34% over the past year.

Did Catalyst Bancorp Have a Good Quarter?

Catalyst Bancorp delivered solid operational results despite modest sequential earnings decline:

The full-year picture tells the more compelling story. FY 2025 net income of $2.1 million ($0.56 EPS) represents a complete reversal from the $3.1 million loss ($0.78 loss per share) in 2024, which was dragged down by a $5.5 million loss on securities sales in Q1 2024.

What Did Management Say?

CEO Joe Zanco highlighted two key positives:

"Loan growth was strong during the quarter. We're also pleased to see our net interest margin widen as funding costs declined."

The net interest margin expansion to 3.91% reflects the bank's success in repricing deposits lower as the Fed cut rates, with the average rate on interest-bearing liabilities declining 12 basis points to 2.50%.

How Did the Loan Portfolio Perform?

Loan growth was the standout metric, with total loans reaching $170.2 million—up $5.4 million or 3% from the prior quarter.

Commercial & Industrial lending surged 22% QoQ to $31.2 million, largely driven by oilfield services exposure which nearly doubled from $9.5 million to $17.3 million.

The concentration in oilfield services (now ~10% of total loans) bears monitoring given commodity price volatility, but management appears comfortable with the credit quality of these relationships.

What Changed in Credit Quality?

Non-performing assets increased to $2.7 million from $1.9 million in Q3, pushing the NPA/Total Assets ratio up to 0.95% from 0.67%.

The deterioration is concentrated in one-to-four-family residential mortgages, which represent 95% of non-performing loans. Provision expense was $96,000 in Q4, driven by loan growth and increased construction commitments.

How Is Capital Being Allocated?

Catalyst continues aggressive share buybacks. The company repurchased 54,693 shares at an average price of $14.76 during Q4 2025, completing its November 2024 plan and announcing a new November 2025 plan for up to 205,000 additional shares.

Cumulative buyback impact since January 2023:

• Shares repurchased: 1,215,089 (23% of original float)
• Average cost: $12.06 per share
• Shares outstanding: 4,074,911

With shareholders' equity of $81.7 million (28.9% of total assets) and strong regulatory capital ratios (Common Equity Tier 1 of 42.45%), the bank has ample capacity for continued buybacks at current levels.

How Did the Stock React?

Catalyst Bancorp stock showed minimal reaction on earnings day, trading flat at $15.70 on modest volume. However, the longer-term story is compelling:

The stock trades at 0.79x tangible book value ($81.7M equity / 4.1M shares = ~$20 book value per share), a discount that reflects the limited analyst coverage and trading liquidity typical of micro-cap community banks.

What Should Investors Watch Going Forward?

Positives:

• Turnaround complete with consistent quarterly profitability
• Net interest margin expanding as funding costs decline
• Aggressive buybacks at attractive prices (avg $12.06 vs $15.70 current)
• Fortress balance sheet with 42%+ CET1 ratio

Concerns:

• Oilfield services concentration now ~10% of loans
• NPAs ticking higher, though still manageable
• Limited trading liquidity (~$20K daily volume)
• No analyst coverage for institutional validation

Key Takeaways

1. Turnaround complete: FY 2025 net income of $2.1M vs. $3.1M loss in 2024
2. Margin expanding: NIM up 3 bps to 3.91% as deposit costs fall
3. Loan growth strong: +3% QoQ driven by oilfield services (+81%)
4. Buybacks accelerating: 23% of original shares retired since 2023
5. Valuation attractive: 0.79x book with excess capital

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Catalyst Bancorp operates six branches in Louisiana's Acadiana region through its Catalyst Bank subsidiary. The company converted from a mutual savings bank (St. Landry Homestead) in 2022.