Catalyst Bancorp (CLST) Registration filing summary

Company overview and business model

• Louisiana community savings bank founded in 1922; operated five full-service offices across St. Landry and Lafayette Parishes, attracting deposits to fund loans and securities investments.

• Conversion would place the bank under a new holding company; post-conversion operations would continue through the bank, which would remain focused on Acadiana.

• Strategy after conversion: grow commercial real estate, C&I and multifamily lending; deepen relationships with small- to mid-sized businesses and professionals while serving traditional customers.

• Planned franchise growth included a Lafayette branch by year-end 2021, enhanced digital services, possible acquisitions in south Louisiana and later rebranding.

Financial performance and metrics

• FY2020 assets $224.7M, deposits $164.6M and equity $50.6M; assets rose 2.8% YoY, deposits rose 16.2%, and net loans fell 7.9%.

• FY2020 net loss $684K vs. net income $1.338M in FY2019; net interest income fell 3.9% to $6.785M, while provision for loan losses rose to $985K from $75K.

• FY2020 net interest margin 3.12% vs. 3.39% in FY2019; loss reflected $1.5M in FHLB prepayment penalties and higher loan-loss provision.

• Q1 2021 net income was $151K vs. $155K in Q1 2020; deposits increased to $176.7M and total assets to $236.7M from Dec. 31, 2020.

• At Dec. 31, 2020, one- to four-family mortgages were 65.8% of loans; nonperforming assets were 0.93% of assets and total risk-based capital was 42.42%.

Use of proceeds and capital allocation

• Estimated net proceeds: $31.4M at minimum, $37.1M at midpoint, $42.8M at maximum and $49.4M at adjusted maximum.

• At midpoint, planned allocation: $18.6M to the bank, $3.1M as an ESOP loan and $15.5M retained at the holding company; adjusted maximum allocations were $24.7M, $4.1M and $20.6M.

• Bank proceeds could support lending, securities, branches or acquisitions; retained proceeds could fund investments, capital management, repurchases, dividends and general purposes, subject to regulatory limits.

• No specific acquisition transaction was agreed; initial proceeds were expected to be invested substantially in short-term securities, with no timetable for deployment.