Catalyst Bancorp (CLST) Q2 2023 earnings summary

Executive summary

• Q2 net income was $39,000, versus $15,000 a year earlier and $73,000 in Q1; H1 net income was $112,000, compared with a $126,000 loss in H1 2022.

• At June 30, assets were $266.0M, deposits $171.4M, loans $133.5M and shareholders’ equity $84.3M.

• Management prioritized new customer additions and growth in existing relationships across Acadiana.

Financial highlights

• Q2 net interest income was $1.903M, up 5.1% YoY but down 3% QoQ; higher interest expense partly offset increased loan interest income.

• Q2 interest income rose 18.2% YoY to $2.3M, while interest expense increased 170.3% to $419,000. H1 net interest income grew 8.6% to $3.9M.

• Q2 non-interest income was $317,000, down 16.4% YoY but up 8% QoQ; non-interest expense was $2.191M, down 8.1% YoY and up $6,000 QoQ.

• H1 non-interest income rose 6.1% to $611,000 and non-interest expense fell 4.6% to $4.4M; 2022 included a $171,000 grant and rebranding costs.

Outlook and guidance

• Management anticipated adequate liquidity, retention of most maturing time deposits and continued use of FHLB advances.

• $41.9M of CDs matured within one year; low retention could require FHLB advances or higher deposit rates, increasing interest expense.