Catalyst Bancorp, Inc. reported net income of $521,000 for the second quarter of 2025, a decrease from $586,000 in the first quarter of 2025, but roughly flat compared to $527,000 a year earlier. Earnings per share increased to $0.14, reflecting a 7.7% rise from a year earlier.
Net interest income climbed 4% over the previous quarter, supported by higher income on loans as loan balances increased. The net interest margin improved to 3.98%, up from 3.89% a quarter earlier and 3.72% a year earlier, driven by increased yields and reduced funding costs on interest-bearing deposits.
Loan portfolio diversification gained momentum, with commercial real estate loans surging 54% to $34.0 million and multi-family residential loans more than doubling to $5.4 million, largely due to construction projects converting to amortizing real estate loans. Total loans increased by $1.5 million, or less than 1%, to $167.6 million.
Total deposits grew by 1% sequentially to $182.2 million, with non-interest-bearing demand balances surging 19% and savings accounts jumping 20% compared to the previous quarter. Non-interest income declined by $209,000, or 38%, to $344,000 due to the absence of one-time insurance proceeds recorded in the prior quarter.
Asset quality remained stable, with non-performing assets at $1.8 million, representing 0.64% of total assets, and no provision for new credit losses during the quarter. The company continued its capital return program by repurchasing 62,385 shares at an average cost of $11.91 per share.
The efficiency ratio increased to 77.46% in Q2 2025 from 75.31% in the previous quarter, affected by modest top-line growth. Cash and cash equivalents declined to $40.1 million from $75.5 million a year earlier, as funds were utilized for loan and investment activities.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.