Catalyst Bancorp, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, total interest income surged to $3.7 million, a 48.7% increase from $2.5 million in the same period of 2023. This growth was driven by a rise in interest income from loans, which increased by $865,000, and from other interest-earning assets, which rose by $485,000. The net interest income for the quarter was $2.5 million, up 30.0% from $1.9 million in the prior year, with a net interest margin of 3.86%, reflecting a 77 basis point improvement.

In contrast, the nine-month period ended September 30, 2024, saw total interest income increase by $3.3 million, or 46.7%, reaching $10.4 million compared to $7.1 million in 2023. However, the company reported a net loss of $3.7 million for the nine months, a significant decline from a net income of $219,000 in the same period last year. This loss was attributed to a $5.5 million loss on the sale of investment securities and increased non-interest expenses, which rose by 10.3% to $7.1 million.

Total assets increased to $280.6 million as of September 30, 2024, up 3.6% from $270.9 million at the end of 2023. Loans receivable also saw a substantial increase, rising 14.5% to $165.9 million, driven by growth in real estate and commercial loans. Total deposits increased slightly to $167.4 million, a 1.1% rise from $165.6 million at the end of 2023.

The company’s total borrowings increased significantly by 52.3% to $29.5 million, reflecting its strategy to enhance liquidity through the Bank Term Funding Program. Shareholders' equity decreased to $81.7 million, down 3.4% from $84.6 million at the end of 2023.

Catalyst Bancorp also repurchased 362,199 shares of its common stock during the nine months ended September 30, 2024, at an average cost of $11.98 per share, as part of its ongoing capital management strategy. The company continues to monitor its liquidity position and anticipates sufficient funds to meet its commitments.

Overall, while Catalyst Bancorp experienced growth in interest income and loans, it faced challenges with net losses and increased expenses, impacting its overall profitability for the nine-month period.