# EDGAR Filing Document

**Accession Number:** 0001849867
**File Stem:** 0001849867-25-000018
**Filing Date:** 2025-7
**Character Count:** 32275
**Document Hash:** 70e9ca5cb0c3778cf3f0fcacf883c416
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001849867-25-000018.hdr.sgml**: 20250724

**ACCESSION NUMBER**: 0001849867-25-000018

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250724

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250724

**DATE AS OF CHANGE**: 20250724

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Catalyst Bancorp, Inc.
- **CENTRAL INDEX KEY:** 0001849867
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 862411762

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40893
- **FILM NUMBER:** 251147990

**BUSINESS ADDRESS:**
- **STREET 1:** 235 N. COURT STREET
- **CITY:** OPELOUSAS
- **STATE:** LA
- **ZIP:** 70570
- **BUSINESS PHONE:** 337-948-3033

**MAIL ADDRESS:**
- **STREET 1:** 235 N. COURT STREET
- **CITY:** OPELOUSAS
- **STATE:** LA
- **ZIP:** 70570

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported) <u>July 24, 2025</u>

Catalyst Bancorp, Inc.

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| Louisiana | 001-40893 | 86-2411762 |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

<u>235 N. Court Street, Opelousas, Louisiana</u> <u>70570</u> <br> (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code <u>(337) 948-3033</u>

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each Class | Trading<br>Symbol(s) | Name of each exchange on which registered |
| Common Stock | CLST | Nasdaq Capital Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

#### ITEM 2.02 Results of Operations and Financial Condition
On July 24, 2025, Catalyst Bancorp, Inc. (the "Company") announced its results for the quarter ended June 30, 2025. A copy of the related press release (the "Press Release") is attached as Exhibit 99.1 to this Current Report on Form 8-K. The information furnished under items 2.02 and 9.01 of this Current Report on Form 8-K, including the exhibit, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that Section, and it shall not be deemed incorporated by reference in any filing under the Exchange Act, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing to this Form 8-K.

#### ITEM 9.01 Financial Statements and Exhibits
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits

The following exhibits are included herein:

---

| | |
|:---|:---|
| Exhibit Number | Description |
| 99.1 | [Press Release, dated July 24, 2025](clst-20250724xex99d1.htm) |
| 104 | Cover Page Interactive Data File. Embedded within the Inline XBRL document. |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **CATALYST BANCORP, INC.** | **CATALYST BANCORP, INC.** |
| Date: | July 24, 2025 | By: | /s/ Joseph B. Zanco |
|  |  |  | Joseph B. Zanco |
|  |  |  | President and Chief Executive Officer |

---

## Exhibit 99.1

#### Exhibit 99.1
**For more information:**

Joe Zanco, President and CEO

(337) 948-3033

**For Immediate Release**

Release Date: July 24, 2025

#### Catalyst Bancorp, Inc. Announces 2025 Second Quarter Results
Opelousas, Louisiana – Catalyst Bancorp, Inc. (Nasdaq: "CLST") (the "Company"), the parent company for Catalyst Bank (the "Bank") (www.catalystbank.com), reported net income of $521,000 for the second quarter of 2025, compared to net income of $586,000 for the first quarter of 2025.

"We're pleased to see both loan and deposit growth during the quarter," said Joe Zanco, President and Chief Executive Officer of the Company and Bank. "When given the opportunity to earn new business, our success rate remains strong. Our team continues to build momentum across our markets."

------

#### Loans
Loans totaled $167.6 million at June 30, 2025, up $1.5 million, or less than 1%, from March 31, 2025. The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(Dollars in thousands)*** | **6/30/2025** | **3/31/2025** | **Change** | **Change** |
| **Real estate loans** |  |  |  |  |
| &nbsp;&nbsp;One- to four-family residential | $80195 | $82025 | $(1830) | (2)% |
| &nbsp;&nbsp;Commercial real estate | 33976 | 22103 | 11873 | 54 |
| &nbsp;&nbsp;Construction and land | 20650 | 32038 | (11388) | (36) |
| &nbsp;&nbsp;Multi-family residential | 5432 | 2530 | 2902 | 115 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total real estate loans | 140253 | 138696 | 1557 | 1 |
| **Other loans** |  |  |  |  |
| &nbsp;&nbsp;Commercial and industrial | 25035 | 25447 | (412) | (2)% |
| &nbsp;&nbsp;Consumer | 2281 | 1934 | 347 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other loans | 27316 | 27381 | (65) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | $167569 | $166077 | $1492 | 1 |

---

In the second quarter of 2025, four construction loans totaling $14.5 million were converted to amortizing real estate loans following the completion of their respective construction projects. Of these, one loan totaling $2.9 million was classified as multi-family, while the remaining loans were designated as commercial real estate.

The following table presents certain major segments of our commercial real estate, construction and land, and commercial and industrial loan balances as of the dates indicated.

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(Dollars in thousands)*** | **6/30/2025** | **3/31/2025** | **Change** | **Change** |
| **Commercial real estate** |  |  |  |  |
| &nbsp;&nbsp;Retail | $9739 | $3723 | $6016 | 162% |
| &nbsp;&nbsp;Hospitality | 5849 | 3342 | 2507 | 75 |
| &nbsp;&nbsp;Health service facilities | 3345 | 389 | 2956 | 760 |
| &nbsp;&nbsp;Restaurants | 1049 | 1070 | (21) | (2) |
| &nbsp;&nbsp;Oilfield services | 384 | 393 | (9) | (2) |
| &nbsp;&nbsp;Other non-owner occupied | 2648 | 2479 | 169 | 7 |
| &nbsp;&nbsp;Other owner occupied | 10962 | 10707 | 255 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial real estate | $33976 | $22103 | $11873 | 54 |
| **Construction and land** |  |  |  |  |
| &nbsp;&nbsp;Multi-family residential | $8997 | $11297 | $(2300) | (20)% |
| &nbsp;&nbsp;Health service facilities | 7649 | 8626 | (977) | (11) |
| &nbsp;&nbsp;Hospitality | - | 2716 | (2716) | (100) |
| &nbsp;&nbsp;Retail | - | 6077 | (6077) | (100) |
| &nbsp;&nbsp;Other commercial construction and land | 1782 | 1791 | (9) | (1) |
| &nbsp;&nbsp;Consumer residential construction and land | 2222 | 1531 | 691 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total construction and land | $20650 | $32038 | $(11388) | (36) |
| **Commercial and industrial** |  |  |  |  |
| &nbsp;&nbsp;Oilfield services | $8081 | $8474 | $(393) | (5)% |
| &nbsp;&nbsp;Industrial equipment | 8453 | 8285 | 168 | 2 |
| &nbsp;&nbsp;Professional services | 3146 | 3119 | 27 | 1 |
| &nbsp;&nbsp;Other commercial and industrial | 5355 | 5569 | (214) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial and industrial loans | $25035 | $25447 | $(412) | (2) |

---

------

#### Credit Quality and Allowance for Credit Losses
At June 30, 2025, non-performing assets ("NPAs") totaled $1.8 million, compared to $1.7 million at March 31, 2025. The ratio of NPAs to total assets was 0.64% and 0.63% at June 30, 2025 and March 31, 2025, respectively. Non-performing loans ("NPLs") comprised 1.00% and 0.99% of total loans at June 30, 2025 and March 31, 2025, respectively. At June 30, 2025 and March 31, 2025, 99% and 98% of total NPLs, respectively, were one- to four-family residential mortgage loans.

At June 30, 2025, the allowance for credit losses on loans totaled $2.4 million, or 1.45% of total loans, compared to $2.5 million, or 1.51% of total loans, at March 31, 2025. The provision for credit losses was zero for the first and second quarters of 2025. Net loan charge-offs totaled $42,000 during the second quarter of 2025, compared to net charge-offs of $39,000 for the first quarter of 2025. Net loan charge-offs during the first and second quarters of 2025 were primarily related to residential mortgage loans and overdrawn deposit accounts.

------

#### Deposits
Total deposits were $182.2 million at June 30, 2025, up $1.6 million, or 1%, from March 31, 2025. Total deposits averaged $179.4 million during the second quarter of 2025, compared to $177.1 million during the first quarter of 2025. The change in deposits was mainly due to fluctuations in public funds and inflows from commercial customers. The following table sets forth the composition of the Company's deposits as of the dates indicated.

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(Dollars in thousands)*** | **6/30/2025** | **3/31/2025** | **Change** | **Change** |
| Non-interest-bearing demand deposits | $31155 | $26093 | $5062 | 19% |
| Interest-bearing demand deposits | 35307 | 42737 | (7430) | (17) |
| Money market | 9437 | 9737 | (300) | (3) |
| Savings | 51001 | 42542 | 8459 | 20 |
| Certificates of deposit | 55311 | 59489 | (4178) | (7) |
| &nbsp;&nbsp;Total deposits | $182211 | $180598 | $1613 | 1 |

---

The ratio of the Company's total loans to total deposits was 92% at both June 30 and March 31, 2025.

Total public fund deposits amounted to $29.0 million, or 16% of total deposits, at June 30, 2025, compared to $29.8 million, or 17% of total deposits, at March 31, 2025. At June 30, 2025, approximately 64% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits, compared to 80% at March 31, 2025. At June 30, 2025, a larger portion of public funds were held in savings accounts.

#### Capital and Share Repurchases
At June 30, 2025 and March 31, 2025, consolidated shareholders' equity totaled $80.8 million, or 29.5% of total assets, and $80.6 million, or 29.7% of total assets, respectively.

The Company repurchased 62,385 shares of its common stock at an average cost per share of $11.91 during the second quarter of 2025, compared to 72,949 shares at an average cost per share of $11.86 during the first quarter of 2025. Under the Company's November 2024 Repurchase Plan, 51,816 shares of the Company's common stock were available for repurchase at June 30, 2025. Since the announcement of our first share repurchase plan on January 26, 2023 and through June 30, 2025, the Company has repurchased a total of 1,147,184 shares of its common stock, or approximately 22% of the common shares originally issued, at an average cost per share of $11.92. At June 30, 2025, the Company had common shares outstanding of 4,142,816.

------

#### Net Interest Income
The net interest margin for the second quarter of 2025 was 3.98%, up nine basis points compared to the prior quarter. For the second quarter of 2025, the average yield on interest-earning assets was 5.58%, up four basis points from the prior quarter, and the average rate paid on interest-bearing liabilities was 2.51%, down five basis points from the first quarter of 2025.

Net interest income for the second quarter of 2025 was $2.5 million, up $103,000, or 4%, compared to the first quarter of 2025. Total interest income was up $87,000, or 3%, in the second quarter of 2025 compared to the prior quarter largely due to an increase in income on loans. Total interest expense decreased $16,000, or 2%, in the second quarter of 2025 compared to the prior quarter due to a decline in the cost of deposits.

The following table sets forth, for the periods indicated, the Company's total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Taxable equivalent ("TE") yields have been calculated using a marginal tax rate of 21%. All average balances are based on daily balances.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| | **6/30/2025** | **6/30/2025** | **6/30/2025** | **3/31/2025** | **3/31/2025** | **3/31/2025** |
| <br>***(Dollars in thousands)*** | **Average Balance** | **Interest** | **Average Yield/ Rate**<sup>(TE)</sup> | **Average Balance** | **Interest** | **Average Yield/ Rate**<sup>(TE)</sup> |
| **INTEREST-EARNING ASSETS** |  |  |  |  |  |  |
| &nbsp;&nbsp;Loans receivable<sup>(1)</sup> | $167627 | $2792 | 6.68% | $166145 | $2738 | 6.68% |
| &nbsp;&nbsp;Investment securities<sup>(2)</sup> | 48285 | 294 | 2.49 | 46960 | 275 | 2.35 |
| &nbsp;&nbsp;Other interest earning assets | 33225 | 375 | 4.53 | 33585 | 361 | 4.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | $249137 | $3461 | 5.58 | $246690 | $3374 | 5.54 |
| **INTEREST-BEARING LIABILITIES** |  |  |  |  |  |  |
| &nbsp;&nbsp;Demand deposits, money market, and savings accounts | $92088 | $466 | 2.03% | $94133 | $483 | 2.08% |
| &nbsp;&nbsp;Certificates of deposit | 57018 | 459 | 3.23 | 55846 | 458 | 3.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 149106 | 925 | 2.49 | 149979 | 941 | 2.54 |
| &nbsp;&nbsp;Borrowings | 9619 | 68 | 2.84 | 9573 | 68 | 2.85 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | $158725 | $993 | 2.51 | $159552 | $1009 | 2.56 |
| **Net interest-earning assets** | $90412 |  |  | $87138 |  |  |
| **Net interest income; average interest rate spread** |  | $2468 | 3.07% |  | $2365 | 2.98% |
| **Net interest margin**<sup>(3)</sup> |  |  | 3.98 |  |  | 3.89 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes non-accrual loans during the respective periods. Calculated net of deferred fees and discounts and loans in-process.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Average investment securities does not include unrealized holding gains/losses on available-for-sale securities.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Equals net interest income divided by average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%.

------

#### Non-interest Income
Non-interest income for the second quarter of 2025 totaled $344,000, down $209,000, or 38%, compared to the first quarter of 2025. Non-interest income for the first quarter of 2025 included insurance proceeds of $216,000 for fire and flood damages related to foreclosed properties.

#### Non-interest Expense
Non-interest expense for the second quarter of 2025 totaled $2.2 million, down $20,000, or 1%, compared to the first quarter of 2025.

Foreclosed assets expense for the second quarter of 2025 included a write-down on foreclosed assets of $14,000. In the first quarter of 2025, the Company incurred net losses of $88,000 on the sale of foreclosed assets.

Other non-interest expense totaled $234,000 for the second quarter of 2025, up $27,000, or 13%, from the prior quarter primarily due to an increase in loan collection related expenses.

**About Catalyst Bancorp, Inc.**

Catalyst Bancorp, Inc. (Nasdaq: CLST) is a Louisiana corporation and registered bank holding company for Catalyst Bank, its wholly-owned subsidiary, with $273.8 million in assets at June 30, 2025. Catalyst Bank, formerly St. Landry Homestead Federal Savings Bank, has been in operation in the Acadiana region of south-central Louisiana for over 100 years. With a focus on fueling business and improving lives throughout the region, Catalyst Bank offers commercial and retail banking products through our six full-service branches located in Carencro, Eunice, Lafayette, Opelousas, and Port Barre. To learn more about Catalyst Bancorp and Catalyst Bank, visit www.catalystbank.com, or the website of the Securities and Exchange Commission, www.sec.gov.

------

#### Forward-looking Statements
*This news release reflects industry conditions, Company performance and financial results and contains "forward-looking statements,' which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. These forward-looking statements are subject to a number of risk factors and uncertainties which could cause the Company's actual results and experience to differ materially from the anticipated results and expectation expressed in such forward-looking statements.*

*Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Supervision and Regulation" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website and the Company's website, each of which are referenced above. To the extent that statements in this news release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology.* 

*Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. All information is as of the date of this news release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.*

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** |
| **CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION** | **CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION** | **CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION** | **CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION** | **CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION** |
|  | **(Unaudited)** | **(Unaudited)** |  | **(Unaudited)** |
| ***(Dollars in thousands)*** | **6/30/2025** | **3/31/2025** | **12/31/2024** | **6/30/2024** |
| **ASSETS** |  |  |  |  |
| &nbsp;&nbsp;Non-interest-bearing cash | $4024 | $4128 | $4076 | $4952 |
| &nbsp;&nbsp;Interest-bearing cash and due from banks | 36032 | 36190 | 40219 | 70503 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cash and cash equivalents | 40056 | 40318 | 44295 | 75455 |
| &nbsp;&nbsp;Investment securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities available-for-sale, at fair value | 29294 | 29840 | 28712 | 29748 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities held-to-maturity | 14948 | 13445 | 13447 | 13454 |
| &nbsp;&nbsp;Loans receivable, net of unearned income | 167569 | 166077 | 167076 | 153266 |
| &nbsp;&nbsp;Allowance for credit losses | (2431) | (2500) | (2522) | (2215) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans receivable, net  | 165138 | 163577 | 164554 | 151051 |
| &nbsp;&nbsp;Accrued interest receivable | 883 | 866 | 851 | 737 |
| &nbsp;&nbsp;Foreclosed assets | 80 | 77 | 194 | 104 |
| &nbsp;&nbsp;Premises and equipment, net | 5977 | 6049 | 6085 | 6114 |
| &nbsp;&nbsp;Stock in correspondent banks, at cost | 825 | 809 | 1961 | 1919 |
| &nbsp;&nbsp;Bank-owned life insurance | 14726 | 14607 | 14489 | 14252 |
| &nbsp;&nbsp;Other assets | 1858 | 2060 | 2109 | 2499 |
| **TOTAL ASSETS** | $273785 | $271648 | $276697 | $295333 |
| **LIABILITIES** |  |  |  |  |
| &nbsp;&nbsp;Deposits: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-interest-bearing | $31155 | $26093 | $28281 | $30177 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing | 151056 | 154505 | 157393 | 149888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 182211 | 180598 | 185674 | 180065 |
| &nbsp;&nbsp;Borrowings | 9647 | 9603 | 9558 | 30261 |
| &nbsp;&nbsp;Other liabilities | 1128 | 856 | 1261 | 3994 |
| **TOTAL LIABILITIES** | 192986 | 191057 | 196493 | 214320 |
| **SHAREHOLDERS' EQUITY** |  |  |  |  |
| &nbsp;&nbsp;Common stock | 41 | 42 | 43 | 45 |
| &nbsp;&nbsp;Additional paid-in capital | 38259 | 38844 | 39561 | 41914 |
| &nbsp;&nbsp;Unallocated common stock held by benefit plans | (5596) | (5649) | (5702) | (6116) |
| &nbsp;&nbsp;Retained earnings | 50967 | 50446 | 49860 | 48787 |
| &nbsp;&nbsp;Accumulated other comprehensive loss | (2872) | (3092) | (3558) | (3617) |
| **TOTAL SHAREHOLDERS' EQUITY** | 80799 | 80591 | 80204 | 81013 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $273785 | $271648 | $276697 | $295333 |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** |
| **CONSOLIDATED STATEMENTS OF INCOME** | **CONSOLIDATED STATEMENTS OF INCOME** | **CONSOLIDATED STATEMENTS OF INCOME** | **CONSOLIDATED STATEMENTS OF INCOME** | **CONSOLIDATED STATEMENTS OF INCOME** | **CONSOLIDATED STATEMENTS OF INCOME** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
| ***(Dollars in thousands)*** | **6/30/2025** | **3/31/2025** | **6/30/2024** | **6/30/2025** | **6/30/2024** |
| **INTEREST INCOME** |  |  |  |  |  |
| &nbsp;&nbsp;Loans receivable, including fees | $2792 | $2738 | $2383 | $5530 | $4597 |
| &nbsp;&nbsp;Investment securities | 294 | 275 | 210 | 569 | 535 |
| &nbsp;&nbsp;Cash and due from banks | 353 | 341 | 912 | 694 | 1506 |
| &nbsp;&nbsp;Other | 22 | 20 | 20 | 42 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 3461 | 3374 | 3525 | 6835 | 6680 |
| **INTEREST EXPENSE** |  |  |  |  |  |
| &nbsp;&nbsp;Deposits | 925 | 941 | 771 | 1866 | 1540 |
| &nbsp;&nbsp;Borrowings | 68 | 68 | 306 | 136 | 599 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 993 | 1009 | 1077 | 2002 | 2139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income | 2468 | 2365 | 2448 | 4833 | 4541 |
| Provision for credit losses | - | - | 99 | - | 194 |
| Net interest income after provision for credit losses | 2468 | 2365 | 2349 | 4833 | 4347 |
| **NON-INTEREST INCOME (LOSS)** |  |  |  |  |  |
| &nbsp;&nbsp;Service charges on deposit accounts | 202 | 197 | 194 | 399 | 397 |
| &nbsp;&nbsp;Bank-owned life insurance | 119 | 118 | 113 | 237 | 226 |
| &nbsp;&nbsp;Loss on sales of investment securities | - | - | - | - | (5507) |
| &nbsp;&nbsp;Other income on foreclosed assets | - | 216 | - | 216 | - |
| (Loss) gain on sale of fixed assets | - | - | (5) | - | 6 |
| &nbsp;&nbsp;Other | 23 | 22 | 64 | 45 | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income (loss) | 344 | 553 | 366 | 897 | (4797) |
| **NON-INTEREST EXPENSE** |  |  |  |  |  |
| &nbsp;&nbsp;Salaries and employee benefits | 1262 | 1245 | 1143 | 2507 | 2403 |
| &nbsp;&nbsp;Occupancy and equipment | 208 | 199 | 183 | 407 | 379 |
| &nbsp;&nbsp;Data processing and communication | 176 | 182 | 138 | 358 | 932 |
| &nbsp;&nbsp;Professional fees | 114 | 101 | 117 | 215 | 224 |
| &nbsp;&nbsp;Directors' fees | 117 | 114 | 114 | 231 | 229 |
| &nbsp;&nbsp;ATM and debit card | 29 | 22 | 31 | 51 | 100 |
| &nbsp;&nbsp;Foreclosed assets, net | 18 | 89 | 26 | 107 | 34 |
| &nbsp;&nbsp;Advertising and marketing | 20 | 39 | 43 | 59 | 81 |
| &nbsp;&nbsp;Other | 234 | 207 | 273 | 441 | 477 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | 2178 | 2198 | 2068 | 4376 | 4859 |
| Income (loss) before income tax expense (benefit) | 634 | 720 | 647 | 1354 | (5309) |
| Income tax expense (benefit) | 113 | 134 | 120 | 247 | (1147) |
| **NET INCOME (LOSS)** | $521 | $586 | $527 | $1107 | $(4162) |
| Earnings (loss) per share: |  |  |  |  |  |
| &nbsp;&nbsp;Basic | $0.14 | $0.16 | $0.13 | $0.30 | $(1.03) |
| &nbsp;&nbsp;Diluted | 0.14 | 0.16 | 0.13 | 0.30 | (1.03) |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** |
| **SELECTED FINANCIAL DATA** | **SELECTED FINANCIAL DATA** | **SELECTED FINANCIAL DATA** | **SELECTED FINANCIAL DATA** | **SELECTED FINANCIAL DATA** | **SELECTED FINANCIAL DATA** |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
| ***(Dollars in thousands)*** | **6/30/2025** | **3/31/2025** | **6/30/2024** | **6/30/2025** | **6/30/2024** |
| **EARNINGS DATA** |  |  |  |  |  |
| &nbsp;&nbsp;Total interest income | $3461 | $3374 | $3525 | $6835 | $6680 |
| &nbsp;&nbsp;Total interest expense | 993 | 1009 | 1077 | 2002 | 2139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | 2468 | 2365 | 2448 | 4833 | 4541 |
| &nbsp;&nbsp;Provision for credit losses | - | - | 99 | - | 194 |
| &nbsp;&nbsp;Total non-interest income (loss) | 344 | 553 | 366 | 897 | (4797) |
| &nbsp;&nbsp;Total non-interest expense | 2178 | 2198 | 2068 | 4376 | 4859 |
| &nbsp;&nbsp;Income tax expense (benefit) | 113 | 134 | 120 | 247 | (1147) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $521 | $586 | $527 | $1107 | $(4162) |
| **AVERAGE BALANCE SHEET DATA** |  |  |  |  |  |
| &nbsp;&nbsp;Total loans | $167627 | $166145 | $150257 | $166891 | $147342 |
| &nbsp;&nbsp;Total interest-earning assets | 249137 | 246690 | 264776 | 247920 | 267306 |
| &nbsp;&nbsp;Total assets | 270788 | 268232 | 285773 | 269517 | 286240 |
| &nbsp;&nbsp;Total interest-bearing deposits | 149106 | 149979 | 143611 | 149540 | 144906 |
| &nbsp;&nbsp;Total interest-bearing liabilities | 158725 | 159552 | 173079 | 159136 | 173636 |
| &nbsp;&nbsp;Total deposits | 179426 | 177106 | 173326 | 178272 | 173990 |
| &nbsp;&nbsp;Total shareholders' equity | 80611 | 80426 | 80965 | 80519 | 81816 |
| **SELECTED RATIOS** |  |  |  |  |  |
| &nbsp;&nbsp;Return on average assets | 0.77% | 0.89% | 0.74% | 0.83% | (2.92)% |
| &nbsp;&nbsp;Return on average equity | 2.59 | 2.96 | 2.62 | 2.77 | (10.23) |
| &nbsp;&nbsp;Efficiency ratio | 77.46 | 75.31 | 73.47 | 76.37 | (1901.18) |
| &nbsp;&nbsp;Net interest margin<sup>(TE)</sup> | 3.98 | 3.89 | 3.72 | 3.93 | 3.42 |
| &nbsp;&nbsp;Average equity to average assets | 29.77 | 29.98 | 28.33 | 29.88 | 28.58 |
| &nbsp;&nbsp;Common equity Tier 1 capital ratio<sup>(1)</sup> | 43.72 | 46.95 | 49.09 |  |  |
| &nbsp;&nbsp;Tier 1 leverage capital ratio<sup>(1)</sup> | 27.56 | 29.45 | 26.88 |  |  |
| &nbsp;&nbsp;Total risk-based capital ratio<sup>(1)</sup> | 44.98 | 48.20 | 50.34 |  |  |
| **NON-FINANCIAL DATA** |  |  |  |  |  |
| &nbsp;&nbsp;Total employees (full-time equivalent) | 49 | 49 | 47 |  |  |
| &nbsp;&nbsp;Common shares issued and outstanding, end of period | 4142816 | 4205201 | 4478527 |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** | **CATALYST BANCORP, INC. AND SUBSIDIARY** |
| **SELECTED FINANCIAL DATA** | **SELECTED FINANCIAL DATA** | **SELECTED FINANCIAL DATA** | **SELECTED FINANCIAL DATA** | **SELECTED FINANCIAL DATA** | **SELECTED FINANCIAL DATA** |
| **(continued)** | **(continued)** | **(continued)** | **(continued)** | **(continued)** | **(continued)** |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
| ***(Dollars in thousands)*** | **6/30/2025** | **3/31/2025** | **6/30/2024** | **6/30/2025** | **6/30/2024** |
| **ALLOWANCE FOR CREDIT LOSSES** |  |  |  |  |  |
| &nbsp;&nbsp;**Loans:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balance | $2500 | $2522 | $2068 | $2522 | $2124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | (27) | 17 | 185 | (10) | 227 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (63) | (53) | (57) | (116) | (180) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 21 | 14 | 19 | 35 | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (charge-offs) recoveries | (42) | (39) | (38) | (81) | (136) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | $2431 | $2500 | $2215 | $2431 | $2215 |
| &nbsp;&nbsp;**Unfunded commitments:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balance | $104 | $121 | $310 | 121 | 257 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for (reversal of) credit losses on unfunded commitments | 27 | (17) | (86) | 10 | (33) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | $131 | $104 | $224 | $131 | $224 |
| &nbsp;&nbsp;Total provision for credit losses | $- | $- | $99 | $- | $194 |
| **CREDIT QUALITY**<sup>(1)</sup> |  |  |  |  |  |
| Non-accruing loans | $1455 | $1554 | $1560 |  |  |
| Accruing loans 90 days or more past due | 215 | 91 | 40 |  |  |
| &nbsp;&nbsp;Total non-performing loans | 1670 | 1645 | 1600 |  |  |
| Foreclosed assets | 80 | 77 | 104 |  |  |
| &nbsp;&nbsp;Total non-performing assets | $1750 | $1722 | $1704 |  |  |
| Total non-performing loans to total loans | 1.00% | 0.99% | 1.04% |  |  |
| Total non-performing assets to total assets | 0.64 | 0.63 | 0.58 |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Credit quality data and ratios are as of the end of each period presented.

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