Catalyst Bancorp, Inc. reported net income of $626,000 for the fourth quarter of 2024, marking a 40% increase, or $179,000, compared to net income of $447,000 in the third quarter of 2024. The company's loan portfolio achieved a record annual increase of $22.2 million, or 15%, for the full year 2024.
The net interest margin expanded to 3.92%, an increase of six basis points from the prior quarter. Net interest income for the fourth quarter was $2.5 million, a decrease of $60,000, or 2%, compared to the third quarter, primarily due to the use of interest-earning cash to pay off a Bank Term Funding Program (BTFP) advance.
Non-interest expense decreased substantially by $222,000, or 10%, to $2.0 million compared to the third quarter of 2024. This reduction was driven by a $59,000 decrease in data processing and communication expense due to a new internet provider and loan document management contract, and a $57,000 decrease in professional fees due to the absence of fees associated with the BEA Program grant.
Total deposits increased by $18.2 million, or 11%, to $185.7 million at December 31, 2024, largely due to a seasonal increase in public funds. The Bank's $20.0 million BTFP advance was paid off during the quarter, which released pledges on securities with a total amortized cost of $21.0 million.
Non-performing assets totaled $1.8 million, an increase of $214,000, or 13%, from September 30, 2024, primarily due to an increase in non-accruing residential loans. The provision for credit losses for the fourth quarter of 2024 was zero, compared to $337,000 in the third quarter, indicating stable credit quality.
The company continued its share repurchase program, buying back 120,977 shares of its common stock at an average cost of $11.70 during the fourth quarter of 2024. As of December 31, 2024, 187,150 shares remained available for repurchase under the November 2024 Repurchase Plan, bringing the total repurchased shares since January 2023 to 1,011,850.
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