Catalyst Bancorp, Inc. Announces 2025 Third Quarter Results

CatalystBancorp, Inc. (Nasdaq: “CLST”) (the “Company”), the parent company for Catalyst Bank (the “Bank”) (www.catalystbank.com), reported net income of $489,000 for the third quarter of 2025, compared to net income of $521,000 for the second quarter of 2025.

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“Our team has done a good job attracting new deposit customers in 2025,” said Joe Zanco, President and Chief Executive Officer of the Company and Bank. “While loan growth has been slow, we are beginning to see signs of increased economic activity, which we expect will spur loan growth opportunities in the coming quarters.”

Loans

Loans totaled $164.8 million at September30,2025, down $2.8 million, or 2%, from June 30, 2025. The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.

(Dollars in thousands) 9/30/2025 6/30/2025 ChangeReal estate loansOne- to four-family residential $ 78,373 $ 80,195 $ (1,822) (2) %Commercial real estate 33,679 33,976 (297) (1)Construction and land 18,850 20,650 (1,800) (9)Multi-family residential 5,367 5,432 (65) (1)Total real estate loans 136,269 140,253 (3,984) (3)Other loansCommercial and industrial 25,665 25,035 630 3 %Consumer 2,833 2,281 552 24Total other loans 28,498 27,316 1,182 4Total loans $ 164,767 $ 167,569 $ (2,802) (2)

In the third quarter of 2025, a $4.6 million construction loan paid-off and we received $1.0 million of total pay-downs on a commercial and industrial relationship that was downgraded to substandard during the first quarter of 2025. As of September 30, 2025, the classified commercial and industrial relationship totaled $2.1 million and all loans within the relationship were current and performing. Pay-offs and pay-downs during the third quarter of 2025 were partially offset by growth within the health andoilfield services segments of our loan portfolio.

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) 9/30/2025 6/30/2025 ChangeCommercial real estateRetail $ 9,725 $ 9,739 $ (14) (0) %Hospitality 5,742 5,849 (107) (2)Health service facilities 3,325 3,345 (20) (1)Restaurants 1,095 1,049 46 4Oilfield services 374 384 (10) (3)Other non-owner occupied 2,380 2,648 (268) (10)Other owner occupied 11,038 10,962 76 1Total commercial real estate $ 33,679 $ 33,976 $ (297) (1)Construction and landMulti-family residential $ 4,692 $ 8,997 $ (4,305) (48) %Health service facilities 9,695 7,649 2,046 27Other commercial construction and land 1,772 1,782 (10) (1)Consumer residential construction and land 2,691 2,222 469 21Total construction and land $ 18,850 $ 20,650 $ (1,800) (9)Commercial and industrialOilfield services $ 9,532 $ 8,081 $ 1,451 18 %Industrial equipment 7,865 8,453 (588) (7)Professional services 3,187 3,146 41 1Other commercial and industrial 5,081 5,355 (274) (5)Total commercial and industrial loans $ 25,665 $ 25,035 $ 630 3

Credit Quality and Allowance for Credit Losses

At September 30, 2025, non-performing assets (“NPAs”) totaled $1.9 million, compared to $1.8 million at June 30, 2025. The ratio of NPAs to total assets was 0.67% and 0.64% at September 30 and June 30, 2025, respectively. Non-performing loans (“NPLs”) comprised 1.11% and 1.00% of total loans at September 30 and June 30, 2025, respectively. At September 30 and June 30, 2025, 99% of total NPLs were one- to four-family residential mortgage loans.

At September 30 and June 30, 2025, the allowance for credit losses on loans totaled $2.4 million, or 1.45% of total loans. For the third quarter of 2025, we recorded a reversal of provision for credit losses of $36,000 largely due to a reduction in expected credit losses on individually evaluated loans and a decline in total loans. Net loan charge-offs totaled $2,000 during the third quarter of 2025, compared to net charge-offs of $42,000 during the second quarter of 2025. Net loan charge-offs during 2025 have been primarily related to residential mortgage loans and overdrawn deposit accounts.

Investment Securities

Total investment securities were $59.8 million, or 21% of total assets, at September 30, 2025, up $15.6 million, or 35%, compared to June 30, 2025. During the third quarter of 2025, we purchased $15.1 million of variable-rate and $1.1 million of fixed-rate government-sponsored mortgage-backed securities. The weighted average yield of the securities purchased during the third quarter was 5.17% at September 30, 2025.

Deposits

Total deposits were $186.4 million at September 30, 2025, up $4.2 million, or 2%, from June 30, 2025. Total deposits averaged $179.8 million during the third quarter of 2025, compared to $179.4 million during the second quarter of 2025. The increase in deposits was primarily attributable to our high-yield account specials. The competitive offerings have been successful at attracting new deposits and deepening relationships with existing customers. The following table sets forth the composition of the Company's deposits as of the dates indicated.

(Dollars in thousands) 9/30/2025 6/30/2025 ChangeNon-interest-bearing demand deposits $ 27,617 $ 31,155 $ (3,538) (11) %Interest-bearing demand deposits 35,748 35,307 441 1Money market 11,783 9,437 2,346 25Savings 52,152 51,001 1,151 2Certificates of deposit 59,072 55,311 3,761 7Total deposits $ 186,372 $ 182,211 $ 4,161 2

The ratio of the Company's total loans to total deposits was 88% and 92% at September 30 and June 30 2025, respectively.

Total public fund deposits amounted to $30.5 million, or 16% of total deposits, at September 30, 2025, compared to $29.0 million at June 30, 2025. At September 30 and June 30, 2025, approximately 64% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits.

Capital and Share Repurchases

At September 30 and June 30, 2025, consolidated shareholders' equity totaled $81.6 million, or 28.7% of total assets, and $80.8 million, or 29.5% of total assets, respectively.

The Company repurchased 13,212 shares of its common stock at an average cost per share of $12.93 during the third quarter of 2025, compared to 62,385 shares at an average cost per share of $11.91 during the second quarter of 2025. Under the Company's November 2024 Repurchase Plan, 38,604 shares of the Company's common stock were available for repurchase at September 30, 2025. Since the announcement of our first share repurchase plan on January 26, 2023 and through September 30, 2025, the Company has repurchased a total of 1,160,396 shares of its common stock, or approximately 22% of the common shares originally issued, at an average cost per share of $11.94. At September 30, 2025, the Company had common shares outstanding of 4,129,604.

Net Interest Income

The net interest margin for the third quarter of 2025 was 3.88%, down ten basis points compared to the prior quarter. For the third quarter of 2025, the average yield on interest-earning assets was 5.56%, down two basis points from the prior quarter, and the average rate paid on interest-bearing liabilities was 2.62%, up 11 basis points from the second quarter of 2025.

Net interest income for the third quarter of 2025 was $2.5 million, down $18,000, or 1%, compared to the second quarter of 2025. Total interest income was up $52,000, or 2%, in the third quarter of 2025 compared to the prior quarter largely due to an increase in income on investment securities and loans. Total interest expense increased $70,000, or 7%, in the third quarter of 2025 compared to the prior quarter. The increase in interest expense was mainly due to the full quarter impact of growth in our high-yield savings account balances during the second quarter of 2025.

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 9/30/2025 6/30/2025(Dollars in thousands) Average Interest Average Average Interest Average Balance Yield/ Balance Yield/ Rate(TE) Rate(TE)INTEREST-EARNING ASSETSLoans receivable(1) $ 167,032 $ 2,816 6.69 % $ 167,627 $ 2,792 6.68 %Investment securities(2) 51,731 345 2.71 48,285 294 2.49Other interest earning assets 32,241 352 4.33 33,225 375 4.53Total interest-earning assets $ 251,004 $ 3,513 5.56 $ 249,137 $ 3,461 5.58INTEREST-BEARING LIABILITIESDemand deposits, money market, and $ 94,308 $ 529 2.22 % $ 92,088 $ 466 2.03 %savings accountsCertificates of deposit 56,113 454 3.21 57,018 459 3.23Total interest-bearing deposits 150,421 983 2.59 149,106 925 2.49Borrowings 10,699 80 2.97 9,619 68 2.84Total interest-bearing liabilities $ 161,120 $ 1,063 2.62 $ 158,725 $ 993 2.51Net interest-earning assets $ 89,884 $ 90,412Net interest income; average interest rate $ 2,450 2.94 % $ 2,468 3.07 %spreadNet interest margin(3) 3.88 3.98(1) Includes non-accrual loans during the respective periods. Calculated net of deferred fees and discounts and loans in-process.(2) Average investment securities does not include unrealized holding gains/losses on available-for-sale securities.(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 third quarter of 2025 totaled $315,000, down $29,000, or 8%, compared to the second quarter of 2025. During the third quarter of 2025, we corrected an immaterial technical error related to fees charged for the use of foreign ATMs and refunded customers all fees that were applied in error. The refunded fees were the primary reason for the decrease in income from service charges on deposit accounts when comparing the third quarter to the second quarter of 2025.

Non-interest Expense

Non-interest expense for the third quarter of 2025 totaled $2.2 million, up $24,000, or 1%, compared to the second quarter of 2025.

Salaries and employee benefits expense for the third quarter of 2025 totaled $1.3 million, up $50,000, or 4%, from the prior quarter. New grants of share-based compensation in June 2025 and additional payroll tax expense for vesting of existing stock awards accounted for approximately half of the increase.

Professional fees for the third quarter of 2025 totaled $91,000, down $23,000, or 20%, from the prior quarter. During the second quarter of 2025 the Company incurred additional professional fees for our annual shareholders meeting and related materials.

Other non-interest expense totaled $211,000 for the third quarter of 2025, down $23,000, or 10%, from the prior quarter primarily due to a decline 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 $283.8 million in assets at September 30, 2025. Catalyst Bank, formerly St. Landry Homestead Federal Savings Bank, has been in operation in the Acadiana region of south-central Louisiana since 1922. 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 SUBSIDIARYCONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Unaudited) (Unaudited)(Dollars in thousands) 9/30/2025 6/30/2025 12/31/2024 9/30/2024ASSETSNon-interest-bearing cash $ 4,515 $ 4,024 $ 4,076 $ 3,625Interest-bearing cash and due from banks 32,756 36,032 40,219 42,128Total cash and cash equivalents 37,271 40,056 44,295 45,753Investment securities:Securities available-for-sale, at fair value 44,853 29,294 28,712 32,196Securities held-to-maturity 14,945 14,948 13,447 13,450Loans receivable, net of unearned income 164,767 167,569 167,076 165,882Allowance for credit losses (2,397) (2,431) (2,522) (2,414)Loans receivable, net 162,370 165,138 164,554 163,468Accrued interest receivable 861 883 851 815Foreclosed assets 76 80 194 173Premises and equipment, net 5,954 5,977 6,085 6,135Stock in correspondent banks, at cost 939 825 1,961 1,939Bank-owned life insurance 14,849 14,726 14,489 14,370Other assets 1,716 1,858 2,109 2,318TOTAL ASSETS $ 283,834 $ 273,785 $ 276,697 $ 280,617LIABILITIESDeposits:Non-interest-bearing $ 27,617 $ 31,155 $ 28,281 $ 27,904Interest-bearing 158,755 151,056 157,393 139,532Totaldeposits 186,372 182,211 185,674 167,436Borrowings 14,693 9,647 9,558 29,513Other liabilities 1,184 1,128 1,261 2,001TOTAL LIABILITIES 202,249 192,986 196,493 198,950SHAREHOLDERS' EQUITYCommon stock 41 41 43 44Additional paid-in capital 37,997 38,259 39,561 40,847Unallocated common stock held by benefit plans (5,260) (5,596) (5,702) (5,777)Retained earnings 51,456 50,967 49,860 49,234Accumulated other comprehensive loss (2,649) (2,872) (3,558) (2,681)TOTAL SHAREHOLDERS' EQUITY 81,585 80,799 80,204 81,667TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 283,834 $ 273,785 $ 276,697 $ 280,617CATALYST BANCORP, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF INCOME(Unaudited) Three Months Ended Nine Months Ended(Dollars in thousands) 9/30/2025 6/30/2025 9/30/2024 9/30/2025 9/30/2024INTEREST INCOMELoans receivable, including fees $ 2,816 $ 2,792 $ 2,717 $ 8,346 $ 7,314Investment securities 345 294 255 914 790Cash and due from banks 345 353 678 1,039 2,184Other 7 22 21 49 63Total interest income 3,513 3,461 3,671 10,348 10,351INTEREST EXPENSEDeposits 983 925 830 2,849 2,370Borrowings 80 68 309 216 908Total interest expense 1,063 993 1,139 3,065 3,278Net interest income 2,450 2,468 2,532 7,283 7,073Provision for (reversal of) credit losses (36) – 337 (36) 531Net interest income after provision for 2,486 2,468 2,195 7,319 6,542(reversal of) credit lossesNON-INTEREST INCOME (LOSS)Service charges on deposit accounts 172 202 200 571 597Bank-owned life insurance 123 119 118 360 344Loss on sales of investment securities – – – – (5,507)Other income on foreclosed assets – – – 216 -(Loss) gain on sale of fixed assets (1) – – (1) 6Federal community development grant – – 280 – 280Other 21 23 22 66 103Total non-interest income (loss) 315 344 620 1,212 (4,177)NON-INTEREST EXPENSESalaries and employee benefits 1,312 1,262 1,200 3,819 3,603Occupancy and equipment 220 208 193 627 572Data processing and communication 179 176 238 537 1,170Professional fees 91 114 151 306 375Directors' fees 123 117 116 354 345ATM and debit card 24 29 24 75 124Foreclosed assets, net 7 18 33 114 67Advertising and marketing 35 20 31 94 112Other 211 234 274 652 751Total non-interest expense 2,202 2,178 2,260 6,578 7,119Income (loss) before income tax expense (benefit) 599 634 555 1,953 (4,754)Income tax expense (benefit) 110 113 108 357 (1,039)NET INCOME (LOSS) $ 489 $ 521 $ 447 $ 1,596 $ (3,715)Earnings (loss) per share:Basic $ 0.13 $ 0.14 $ 0.11 $ 0.43 $ (0.93)Diluted 0.13 0.14 0.11 0.43 (0.93)CATALYST BANCORP, INC. AND SUBSIDIARYSELECTED FINANCIAL DATA Three Months Ended Nine Months Ended(Dollars in thousands) 9/30/2025 6/30/2025 9/30/2024 9/30/2025 9/30/2024EARNINGS DATATotal interest income $ 3,513 $ 3,461 $ 3,671 $ 10,348 $ 10,351Total interest expense 1,063 993 1,139 3,065 3,278Net interest income 2,450 2,468 2,532 7,283 7,073Provision for (reversal of) credit losses (36) – 337 (36) 531Total non-interest income (loss) 315 344 620 1,212 (4,177)Total non-interest expense 2,202 2,178 2,260 6,578 7,119Income tax expense (benefit) 110 113 108 357 (1,039)Net income (loss) $ 489 $ 521 $ 447 $ 1,596 $ (3,715)AVERAGE BALANCE SHEET DATATotal loans $ 167,032 $ 167,627 $ 161,410 $ 166,938 $ 152,066Total interest-earning assets 251,004 249,137 261,069 248,959 265,212Total assets 272,987 270,788 282,440 270,686 284,964Total interest-bearing deposits 150,421 149,106 141,074 149,837 143,619Total interest-bearing liabilities 161,120 158,725 170,576 159,805 172,608Total deposits 179,825 179,426 169,437 178,795 172,461Total shareholders' equity 81,136 80,611 81,307 80,727 81,645SELECTED RATIOSReturn on average assets 0.71 % 0.77 % 0.63 % 0.79 % (1.74) %Return on average equity 2.39 2.59 2.18 2.64 (6.08)Efficiency ratio 79.67 77.46 71.72 77.44 245.83Net interest margin(TE) 3.88 3.98 3.86 3.92 3.56Average equity to average assets 29.72 29.77 28.79 29.82 28.65Common equity Tier 1 capital ratio(1) 43.95 43.72 45.74Tier 1 leverage capital ratio(1) 27.58 27.56 27.43Total risk-based capital ratio(1) 45.20 44.98 46.99NON-FINANCIAL DATATotal employees (full-time equivalent) 49 49 48Common shares issued and outstanding, 4,129,604 4,142,816 4,399,127end of period(1) Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change.CATALYST BANCORP, INC. AND SUBSIDIARYSELECTED FINANCIAL DATA(continued) Three Months Ended Nine Months Ended(Dollars in thousands) 9/30/2025 6/30/2025 9/30/2024 9/30/2025 9/30/2024ALLOWANCE FOR CREDIT LOSSESLoans:Beginning balance $ 2,431 $ 2,500 $ 2,215 $ 2,522 $ 2,124Provision for (reversal of) credit losses (32) (27) 330 (42) 557Charge-offs (37) (63) (184) (153) (364)Recoveries 35 21 53 70 97Net charge-offs (2) (42) (131) (83) (267)Ending balance $ 2,397 $ 2,431 $ 2,414 $ 2,397 $ 2,414Unfunded commitments:Beginning balance $ 131 $ 104 $ 224 121 257Provision for (reversal of) credit losses (4) 27 7 6 (26)on unfunded commitmentsEnding balance $ 127 $ 131 $ 231 $ 127 $ 231Total provision for (reversal of) credit $ (36) $ – $ 337 $ (36) $ 531lossesCREDIT QUALITY(1)Non-accruing loans $ 1,459 $ 1,455 $ 1,423Accruing loans 90 days or more past due 364 215 15Total non-performing loans 1,823 1,670 1,438Foreclosed assets 76 80 173Total non-performing assets $ 1,899 $ 1,750 $ 1,611Total non-performing loans to total loans 1.11 % 1.00 % 0.87 %Total non-performing assets to total assets 0.67 0.64 0.57(1) Credit quality data and ratios are as of the end of each period presented.

For more information:Joe Zanco, President and CEO(337) 948-3033

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