Catalyst Bancorp (CLST) Q3 2023 earnings summary

Executive summary

• Q3 net income was $170k vs. $135k YoY and up $131k QoQ; 9M net income was $282k vs. $9k. Higher net interest income and lower expenses supported results.

• Loan growth was led by C&I and construction lending; deposits declined QoQ amid competition, while repurchases reduced shareholders’ equity.

Financial highlights

• Q3 net interest income was $1.972M, up $69k QoQ and $102k, or 5.5%, YoY; 9M was $5.841M vs. $5.431M.

• Q3 interest income rose $437k to $2.5M and interest expense rose $335k to $497k; 9M interest income rose $1.1M to $7.1M and expense rose $740k to $1.2M.

• Q3 noninterest income was $306k, up $10k YoY and down 3% QoQ; noninterest expense was $2.081M, down $52k YoY and 5% QoQ. 9M income was $917k and expense $6.5M.

• Total assets were $257.9M at September 30, down $5.4M from year-end; net loans were $133.6M and deposits were $165.2M.

Segment performance

• Total loans were $135.7M, up $2.1M from year-end and $2.2M QoQ; C&I rose $5.8M from year-end and $2.0M QoQ, with construction and land also up $2.0M QoQ.

• Growth was partly offset by lower one- to four-family residential balances; real estate loans totaled $113.1M, or 83.4% of loans.

• C&I loans were $19.6M, or 14.5% of loans, primarily serving local businesses in manufacturing and equipment, communications, and professional services.