Catalyst Bancorp, Inc. reported net income of $447,000 for the third quarter of 2024, a decrease from $527,000 in the second quarter of 2024. This figure included a $238,000 pre-tax benefit from a Bank Enterprise Award Program grant, which contributed to the quarter's financial performance.
The company's loan portfolio experienced significant growth, increasing by $12.6 million, or 8%, to $165.9 million at September 30, 2024. This marked the second consecutive quarter of substantial loan expansion, with construction and land loans rising by $9.883 million, or 48%, and commercial and industrial loans by $2.592 million, or 11%.
Net interest margin expanded to 3.86%, an increase of 14 basis points from the prior quarter, driven by a 25 basis point rise in the average yield on interest-earning assets to 5.60%. Net interest income grew by $84,000, or 3%, reaching $2.5 million for the quarter.
Non-interest income totaled $620,000, up $254,000 from the second quarter of 2024, primarily due to the $280,000 BEA Program grant. Non-interest expense increased by $192,000, or 9%, to $2.3 million, with data processing and communication expense rising by $100,000 due to initial billings from a new core processing system upgrade.
Asset quality showed improvement as non-performing assets decreased to $1.6 million from $1.7 million at June 30, 2024, representing 0.57% of total assets. The allowance for loan losses stood at $2.4 million, or 1.46% of total loans, with a provision for credit losses of $337,000 mainly attributable to commercial loan growth.
Total deposits decreased by $12.6 million, or 7%, to $167.4 million, primarily due to seasonal fluctuations in public fund deposits. The company continued its capital management efforts by repurchasing 79,400 shares of its common stock at an average cost of $11.75 during the quarter, with 93,127 shares remaining under the May 2024 Repurchase Plan.
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