Catalyst Ban | 8-K: FY2026 Q2 Revenue: USD 2.952 M

Revenue: As of FY2026 Q2, the actual value is USD 2.952 M.

EPS: As of FY2026 Q2, the actual value is USD 0.14.

EBIT: As of FY2026 Q2, the actual value is USD 676 K.

Net Income

Catalyst Bancorp, Inc. reported net income of $524,000 for the second quarter of 2026, which decreased from $558,000 in the first quarter of 2026 but increased from $521,000 in the second quarter of 2025. For the six months ended June 30, 2026, net income was $1,082,000, down from $1,107,000 for the same period in 2025.

Merger-Related Expenses

Merger-related expenses (pre-tax) were $87,000 for the second quarter of 2026, a decrease from $95,000 (pre-tax) in the first quarter of 2026.

Loans

Total loans amounted to $162,785,000 at June 30, 2026, representing a decrease of $892,000, or 1%, from $163,677,000 at March 31, 2026.

Loan Portfolio Composition (June 30, 2026 vs. March 31, 2026)

• One- to four-family residential loans decreased by $1,394,000 (-2%) to $76,699,000.
• Commercial real estate loans increased by $3,753,000 (11%) to $37,426,000.
• Construction and land loans decreased by $3,818,000 (-19%) to $15,943,000.
• Multi-family residential loans decreased by $57,000 (-1%) to $4,724,000.
• Commercial and industrial loans increased by $630,000 (2%) to $26,256,000.
• Consumer loans decreased by $6,000 to $1,737,000. During the second quarter of 2026, a $5.0 million construction loan was converted to an amortizing commercial real estate loan.

Credit Quality and Allowance for Credit Losses

Non-performing assets (NPAs) totaled $2.3 million at June 30, 2026, a decrease of $385,000, or 14%, from $2.7 million at March 31, 2026. The ratio of NPAs to total assets was 0.80% at June 30, 2026, down from 0.94% at March 31, 2026. Non-performing loans (NPLs) were 1.43% of total loans at June 30, 2026, compared to 1.64% at March 31, 2026. At June 30, 2026, 96% of total NPLs were one- to four-family residential mortgage loans, an increase from 82% at March 31, 2026. The allowance for credit losses on loans totaled $2.2 million, or 1.34% of total loans, at June 30, 2026, compared to $2.3 million, or 1.40% of total loans, at March 31, 2026. Catalyst Bancorp, Inc. recorded a $104,000 reversal of provision for credit losses for the second quarter of 2026, which was higher than the $70,000 reversal for the first quarter of 2026. Net loan charge-offs were $1,000 during the second quarter of 2026, significantly lower than the $37,000 recorded during the first quarter of 2026.

Investment Securities

Total investment securities amounted to $67.1 million, or 23% of total assets, at June 30, 2026, an increase of $3.9 million, or 6%, compared to March 31, 2026. During the second quarter of 2026, the company purchased $6.0 million of subordinated debt with a weighted average yield of 6.3%.

Deposits

Total deposits were $196.4 million at June 30, 2026, an increase of $1.0 million, or 1%, from $195.4 million at March 31, 2026. Average total deposits for the second quarter of 2026 were $198.8 million, up from $198.2 million in the first quarter of 2026. The ratio of total loans to total deposits was 83% at June 30, 2026, compared to 84% at March 31, 2026.

Deposit Composition (June 30, 2026 vs. March 31, 2026)

• Non-interest-bearing demand deposits increased by $607,000 (2%) to $35,346,000.
• Interest-bearing demand deposits decreased by $582,000 (-2%) to $32,667,000.
• Savings deposits increased by $3,861,000 (6%) to $64,386,000.
• Certificates of deposit decreased by $2,822,000 (-5%) to $54,742,000. Growth in high-yield savings accounts was a primary driver of deposit growth in both the first and second quarters of 2026.

Capital and Share Repurchases

Consolidated shareholders’ equity was $82.5 million at June 30, 2026, up from $82.2 million at March 31, 2026. As a percentage of total assets, shareholders’ equity was 28.5% at June 30, 2026. Catalyst Bancorp, Inc. repurchased 24,206 shares of its common stock at an average cost of $16.20 per share during the second quarter of 2026, compared to 16,614 shares at an average cost of $15.71 per share in the first quarter of 2026. As of June 30, 2026, 148,091 shares were available for repurchase under the November 2025 Repurchase Plan.

Net Interest Income

The net interest margin for the second quarter of 2026 was 3.86%, a three basis point increase from the prior quarter. The average yield on interest-earning assets was 5.34%, down two basis points, while the average rate paid on interest-bearing liabilities was 2.31%, down four basis points from the first quarter of 2026. Net interest income for the second quarter of 2026 was $2.6 million, an increase of $46,000, or 2%, compared to the first quarter of 2026. Total interest income increased by $14,000, or less than 1%, while total interest expense decreased by $32,000, or 3%, in the second quarter of 2026 compared to the prior quarter.

Non-interest Expense

Total non-interest expense for the second quarter of 2026 was $2.4 million, an increase of $97,000, or 4%, compared to $2.3 million in the first quarter of 2026.

Key components of Non-interest Expense

• Professional fees totaled $175,000, including $64,000 of merger-related expenses, compared to $185,000 (including $95,000 merger-related) in the prior quarter.
• Advertising and marketing expense was $47,000, up $14,000, or 42%, primarily due to merger-related expenses.
• Other non-interest expense totaled $289,000, an increase of $55,000, or 24%, from the prior quarter, mainly due to training and education expenses and annual report distribution costs.

Income Tax Expense

Income tax expense for the second quarter of 2026 was $152,000, an increase of $26,000, or 21%, compared to $126,000 in the first quarter of 2026. The effective tax rate was 22.5% for the second quarter of 2026, up from 18.4% in the first quarter of 2026, largely due to the tax impact of non-deductible merger-related expenses.

Operational Metrics

Total employees (full-time equivalent) remained stable at 49 for both the second and first quarters of 2026, and the second quarter of 2025.

Outlook / Guidance

The President and CEO expressed excitement about Louisiana’s economic future and a strong start in their new Southwest Louisiana market. The report primarily provides historical financial data and a general disclaimer regarding forward-looking statements rather than specific financial guidance.