Catalyst Bancorp (CLST) Q1 2023 earnings summary

Executive summary

• Q1 2023 net income was $73,000, versus a $141,000 net loss in Q1 2022 and $171,000 in Q4 2022; diluted EPS was $0.02.

• Total assets rose 4.7% from Dec. 31, 2022, to $275.8 million at March 31, 2023.

Financial highlights

• Net interest income was $1.966 million, up 12.3% YoY and 3% QoQ; net interest margin was 3.10%, versus 2.59% in Q1 2022 and up 14 bps QoQ.

• Non-interest income was $294,000, up 49.2% YoY and down 2% QoQ; non-interest expense was $2.185 million, down 0.7% YoY and up 9% QoQ.

• Comprehensive income was $1.149 million, including $1.076 million of other comprehensive income as unrealized securities losses improved.

Outlook and guidance

• Of certificates of deposit, $41.5 million were due within one year; management expected most maturing time deposits to be retained and anticipated continued use of FHLB advances.

• Additional borrowing capacity was $34.3 million from the FHLB and $17.8 million on a correspondent-bank line; adjustable-rate loans scheduled to reprice within 12 months included $47.0 million of real estate and $5.5 million of C&I loans.