Catalyst Bancorp, Inc. reported net income of $978,000 for the third quarter of 2026, or $0.27 per diluted common share. This figure represents an increase of $454,000, or 87%, compared to the second quarter of 2026, when net income was $524,000, or $0.14 per diluted share.
The company attributes the significant earnings growth to the acquisition of Lakeside Bancshares, Inc. completed on July 14, 2026. At the time of acquisition, Lakeside had total assets of $379.5 million, including loans of $226.8 million and deposits of $284.2 million. Lakeside’s shareholders received $19.58 per share in cash, totaling $41.1 million.
Excluding merger-related expenses, non-GAAP net income for the third quarter totaled $1.9 million, or $0.51 per diluted share. Non-GAAP return on average assets was 1.24%, and non-GAAP return on average tangible common equity was 11.05%.
Loan balances have expanded substantially following the merger. Total loans reached $383.5 million at September 30, 2026, a $220.7 million, or 136%, increase from June 30, 2026. The loan portfolio is primarily composed of real estate loans, including one- to four-family residential, commercial real estate, construction and land, and multi-family residential loans.
Credit quality metrics show an increase in non-performing loans. At September 30, 2026, non-performing loans totaled $4.4 million, up $2.1 million, or 91%, from the second quarter. The company recorded a $261,000 reversal of the provision for credit losses for the third quarter, driven by a decline in construction and land loans.
Investment securities also grew, reaching $123.9 million, or 19.6% of total assets, up $56.9 million from the prior quarter.
