Catalyst Bancorp, Inc.

Catalyst Bancorp, Inc. announced that Lakeside Bancshares, Inc. shareholders have approved the pending merger. Additionally, all required regulatory approvals for the mergers have been obtained. The mergers, which include Lakeside Bancshares into Catalyst Bancorp and Lakeside Bank into Catalyst Bank, are now expected to close on or about July 14, 2026, subject to remaining closing conditions.

Catalyst Bancorp, Inc. held its Annual Meeting of Shareholders on May 19, 2026. During the meeting, shareholders elected Frederick R. Lafleur and Matthew L. Scruggins to the Board of Directors for three-year terms. Additionally, the appointment of BDO USA, P.C. as the company's independent registered public accounting firm for the year ending December 31, 2026, was ratified. A quorum was present with 2,932,637 shares represented at the meeting.

Catalyst Bancorp reported a decrease in net income and diluted earnings per share for the first quarter of 2026 compared to the same period in the prior year, despite an increase in net interest income. The company saw growth in total assets and deposits quarter-over-quarter, while loans receivable, net, experienced a decline. A reversal of credit losses contributed positively to the quarter's results.

Catalyst Bancorp, Inc. reported net income of $558,000, or $0.15 diluted EPS, for the first quarter of 2026, an increase from $456,000, or $0.13 diluted EPS, in the prior quarter. The company incurred $95,000 in professional fees related to its agreement to acquire Lakeside Bancshares, Inc. Total loans decreased by 4% to $163.7 million, while total deposits increased by 5% to $195.4 million. The net interest margin slightly declined to 3.83%.

Catalyst Bancorp, Inc. has entered into a definitive agreement to acquire Lakeside Bancshares, Inc. for an aggregate cash consideration of $41.1 million. The transaction, unanimously approved by both companies' Boards of Directors, will see Catalyst Bancorp acquire all outstanding shares of Lakeside Bancshares common stock at $19.58 per share. This strategic acquisition is structured as a share exchange followed by a merger, with Catalyst Bancorp and Catalyst Bank continuing as the surviving entities, signaling an expansion of Catalyst's banking operations.