CLST earnings analysis
What we found in CLST's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Catalyst Bancorp delivered broadly stable second-quarter earnings, with net income up 0.6% to $524,000 and diluted EPS unchanged at $0.14, while net interest income rose 5.0%. Deposit growth and higher-yielding securities strengthened liquidity, but net interest margin declined and loans contracted. The completed $41.1 million Lakeside acquisition offers substantial scale expansion, although integration, preliminary purchase accounting and pro forma capital at approximately 12.5% of assets are important execution risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Net income remained broadly stable
- Second-quarter net income was $524,000 versus $521,000 in the prior-year quarter, an increase of 0.6%; diluted EPS was $0.14 in both periods. Net interest income increased 5.0% to $2.591 million from $2.468 million.
- Credit reversal supported earnings
- Net interest income after the reversal of credit losses increased 9.2% to $2.695 million from $2.468 million. The company recorded a $104,000 reversal of credit losses versus no reversal in the prior-year quarter.
- Higher-yielding securities boosted income
- Investment securities averaged $69.7 million, up 44.4% from $48.3 million, while the average yield increased to 3.28% from 2.49%. This helped offset lower average loans of $163.7 million versus $167.6 million and a lower loan yield of 6.58% versus 6.68%.
- Liquidity and deposits strengthened
- Deposits increased $11.115 million, or 6.0%, to $196.389 million from December 31, 2025, driven primarily by high-yield savings growth. Cash and cash equivalents rose 46.7% to $36.982 million, while borrowings declined 33.6% to $9.786 million.
- Operating cash generation improved
- Operating cash flow was $1.619 million for the six months ended June 30, 2026, compared with $1.578 million in the prior-year period. Investing activities provided $4.696 million, including $7.387 million from a net decrease in loans, while purchases of premises and equipment were $4,000.
- Lakeside materially expands scale
- The Lakeside acquisition closed on July 14, 2026 for aggregate cash consideration of $41.1 million. Based on June 30 data, management expects the transaction to increase total assets to approximately $632 million, loans to $387 million and deposits to $480 million, with four additional branches.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Acquisition integration and capital risk
- The Lakeside transaction remains subject to preliminary purchase accounting, including valuation of acquired loans, securities and core deposit intangibles. Management estimates consolidated equity at approximately $78.7 million, or 12.5% of pro forma assets, versus reported equity of $82.530 million before closing.
- Loan contraction and credit exposure
- Loan balances declined 4.4% to $162.785 million from $170.210 million at December 31, 2025, including a 15.9% decline in commercial and industrial loans to $26.256 million. Non-performing loans were still $2.322 million, or 1.43% of total loans, despite improving from $2.643 million, or 1.55%.
- Margin pressure from rates and mix
- Net interest margin declined to 3.86% from 3.98% in the prior-year quarter and to 3.84% from 3.93% for the six-month period. Average loan yield fell to 6.58% from 6.68%, while management identifies interest-rate changes as a risk that can reduce margins, yields and loan origination levels.
- Deposit repricing and liquidity risk
- The company had approximately $55.1 million of uninsured deposits at June 30, 2026, including public funds. Management expects most of the $48.288 million of certificates of deposit maturing within one year to be retained, but warned that lower retention could require higher deposit rates or additional borrowing.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.14
- Segment
- One reportable banking segment; all banking operations are aggregated into one segment.
What they said about what is next.
No quantitative revenue or EPS guidance was provided in the 10-Q. Management stated it anticipates sufficient funds to meet current funding commitments, expects the majority of maturing time deposits to be retained, and anticipates continued use of secondary funding sources.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 15, 2026
- Catalyst Bancorp, Inc. reported Q1 2026 net income of $558,000, or $0.15 EPS, slightly down from $586,000, or $0.16 EPS from the prior year. The company's total revenue was $2,897,000, which aligns with the previous…
- 10-K · March 31, 2026
- Catalyst Bancorp describes a shift from a traditional thrift to a full-service community bank, prioritizing commercial, multi-family and construction lending while continuing one-to-four-family mortgage originations.…
- 10-Q · November 13, 2025
- Catalyst Bancorp reported Q3 2025 total revenue of $2,765,000 and net income of $489,000 (diluted EPS $0.13). Revenue declined versus the prior-year quarter (Q3 2024 total revenue $3,152,000), while profitability…
- 10-K · March 28, 2025
- Catalyst Bancorp reported a strong performance for the year ending December 31, 2024, with significant growth in both total revenue and net income. Total revenue increased to $12 million, reflecting a strategic shift…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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