Catalyst Bancorp Inc Reports Q2 2025 Earnings: Net Income Down, Loans Rise to $167.6 Million

Catalyst Bancorp Inc reported Q2 2025 earnings with a net income of $521,000, down from $586,000 in Q1 2025. Despite the decline, loans rose to $167.6 million, driven by growth in commercial real estate and multi-family residential loans. Total deposits increased to $182.2 million, with a notable rise in non-interest-bearing demand deposits. The company's net interest margin improved to 3.98%, a nine-basis-point increase from the prior quarter.

Catalyst Bancorp Inc (NASDAQ: CLST) reported its second-quarter 2025 earnings with a net income of $521,000, down from $586,000 in the first quarter of 2025. Despite the decline in net income, the bank showed modest growth in its loan portfolio, with total loans increasing to $167.6 million, up $1.5 million (1%) from Q1 2025. This growth was driven by a significant increase in commercial real estate and multi-family residential loans.

Total deposits also grew to $182.2 million, up $1.6 million (1%) from the previous quarter, with a notable rise in non-interest-bearing demand deposits. The bank's net interest margin improved to 3.98%, a nine-basis-point increase from the prior quarter, reflecting higher loan yields and reduced deposit costs.

The company's allowance for credit losses was $2.4 million (1.45% of total loans), and non-performing assets remained stable at $1.8 million (0.64% of total assets), with 99% of non-performing loans in residential mortgages. Catalyst Bancorp maintained strong capital levels with consolidated shareholders' equity at $80.8 million (29.5% of total assets) and continued its share repurchase program, buying back 62,385 shares at an average cost of $11.91 per share.

The bank's efficiency ratio worsened to 77.46% in Q2 2025, indicating a challenge in cost control. However, the company's balance sheet remains robust, with total assets essentially holding steady at $273.8 million as of June 30, 2025. The company repurchased 62,385 shares during the quarter, continuing its capital return program.

Looking ahead, Catalyst Bancorp's management did not provide explicit numeric guidance for upcoming quarters or the full year. However, the company's strategic focus on loan diversification, operational efficiency, and capital management suggests a long-term value proposition for shareholders.

References:
[1] https://www.stocktitan.net/news/CLST/catalyst-bancorp-inc-announces-2025-second-quarter-nlzieshiwgli.html
[2] https://www.aol.com/finance/catalyst-bancorp-posts-q2-profit-223044638.html
[3] https://www.ainvest.com/news/catalyst-bancorp-q2-2025-earnings-blueprint-long-term-shareholder-2507/