The sequential earnings improvement is modest and driven by lower provision expense rather than core revenue acceleration. The pending Lakeside acquisition is the key catalyst — monitor for regulatory approvals and deal closing timeline. The loan book contraction and NPL uptick warrant watching but are not alarming for a $65M market cap bank.
Price Chart
Executive Summary
Catalyst Bancorp reported Q1 2026 net income of $558,000 ($0.15 diluted EPS), up 22% from Q4 2025's $456,000 ($0.13 diluted EPS). Net interest income rose 2% sequentially to $2.5 million, while total loans declined 4% due to a $5.9 million C&I loan payoff. The company incurred $95,000 in pre-tax professional fees related to the pending Lakeside Bancshares acquisition, and non-performing loans ticked up to 1.64% of total loans from 1.55%.
Key Financial Metrics
Key Facts
- Q1 2026 net income of $558,000 vs $456,000 in Q4 2025 (up 22% sequentially)
- Diluted EPS of $0.15 vs $0.13 in Q4 2025
- Net interest income of $2.5 million, up $38,000 or 2% from prior quarter
- Net interest margin compressed to 3.83% from 3.91% in Q4 2025
- Total loans declined $6.5 million (4%) to $163.7 million, driven by a $5.9 million C&I loan payoff
- Total deposits grew $10.1 million (5%) to $195.4 million
- Non-performing loans increased to 1.64% of total loans from 1.55%
- Recorded a $70,000 reversal of provision for credit losses vs $96,000 provision in Q4 2025
- Incurred $95,000 in pre-tax professional fees related to the Lakeside Bancshares acquisition
- Paused share repurchases during Q1; 172,297 shares remain available under the November 2025 plan
Financial Impact
Net income improved $102,000 sequentially; loan book contracted 4% with credit quality slightly weakening; acquisition costs of $95,000 pre-tax
Risk Factors
- Loan portfolio contraction of 4% signals potential organic growth challenges
- Non-performing loans rising to 1.64% from 1.55% with a $304K CRE loan newly on non-accrual
- Net interest margin compression of 8 bps to 3.83% could pressure future net interest income
- Acquisition integration risk with Lakeside Bancshares pending
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001849867-26-000007 |
| Document: clst-20260430x8k.htm | 0001849867-26-000007 |
| Document: 0001849867-26-000007-index-headers.html | 0001849867-26-000007 |
| Document: 0001849867-26-000007-index.html | 0001849867-26-000007 |
| Document: 0001849867-26-000007.txt | 0001849867-26-000007 |
| 8-K Data (Synthetic) | 0001849867-26-000007 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 6w ago | 8-K | $17.92 | awaiting T+60 | — | $17.00 (−5.11%) |
Aug 18, 2026 9w ago | 8-K | $17.53 | awaiting T+60 | — | $17.00 (−2.99%) |
Jul 14, 2026 14w ago | 8-K | $16.75 $16.80 | ▲ +0.30% | ▼ −3.08% | $17.00 (+1.52%) |
Apr 30, 2026 25w ago | 8-K | $15.96 $17.34 | ▲ +8.68% | ▲ +5.57% | $17.00 (+6.55%) |
Apr 8, 2026 28w ago | 8-K | $15.97 $16.51 | ▲ +3.38% | ▼ −7.40% | $17.00 (+6.48%) |
US Market Status
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