Catalyst Bancorp, Inc. (CLST): Business Model Canvas [Dec-2025 Updated]

You're digging into how Catalyst Bancorp, Inc. actually makes money and stays solid in Louisiana's local banking scene, and honestly, the Business Model Canvas lays it out defintely clearly. This isn't some massive national player; it's a community-focused shop that successfully attracted \$186.4 million in new deposits recently, all while maintaining a rock-solid capital position, sitting at 28.7% shareholders' equity to total assets as of September 30, 2025. We'll break down how their six branches and relationship-driven approach translate into net interest income from a \$164.8 million loan portfolio and what their key partnerships are for keeping the tech running. Dive below to see the full nine-block map of their operation.

Catalyst Bancorp, Inc. (CLST) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships Catalyst Bancorp, Inc. relies on to execute its business plan as of late 2025. These aren't just vendors; they are critical enablers for compliance, liquidity, and market positioning in the Acadiana region of south-central Louisiana.

Government-Sponsored Enterprises (GSEs) for mortgage-backed securities purchases

The relationship with GSEs is key for managing interest rate risk and providing liquidity for the loan portfolio. Catalyst Bancorp, Inc. actively participates in the secondary mortgage market through these entities.

For the third quarter of 2025, the activity included:

• Purchases of variable-rate government-sponsored mortgage-backed securities totaling $15.1 million.
• Purchases of fixed-rate government-sponsored mortgage-backed securities totaling $1.1 million.

This investment strategy supports the balance sheet. As of September 30, 2025, total investment securities stood at $59.8 million, which represented 21% of total assets.

Core banking system vendors for technology infrastructure and recent upgrades

The core banking system is the central nervous system for transaction processing, account management, and regulatory reporting. While the specific vendor for Catalyst Bancorp, Inc. isn't publicly detailed in recent filings, the bank operates within an ecosystem driven by major technology providers.

The industry trend shows banks modernizing to handle digital demands. Here are some of the leading core banking platform providers shaping the market in 2025:

Any recent upgrades would involve integrating new modules for compliance or enhancing omnichannel support, which is crucial for a community bank transitioning its model.

External auditors (BDO, post-October 2025 change) for regulatory compliance

Auditor independence and expertise are non-negotiable for SEC reporting and investor trust. Catalyst Bancorp, Inc. experienced a significant, though non-contentious, change in its certifying accountant late in 2025.

Key dates and facts surrounding the auditor transition:

• October 31, 2025: HORNE LLP resigned as the independent registered public accounting firm after its partners and professional staff joined BDO USA, P.C.
• November 5, 2025: The Audit Committee approved the appointment of BDO USA, P.C. as the new independent registered public accounting firm.
• HORNE LLP had been approved in November 2024 to audit the fiscal year ending December 31, 2025.
• The company reported no disagreements with HORNE LLP on accounting principles or auditing scope between March 28, 2025, and October 31, 2025.

This switch means BDO USA is taking over the audit for the fiscal year ending December 31, 2025, without prior consultation on specific accounting issues.

Local community organizations for financial literacy and regional impact

As a community bank operating in the Acadiana region, partnerships with local entities are vital for fulfilling its mission and meeting regulatory expectations, particularly the Community Reinvestment Act (CRA).

Evidence of strong community focus includes:

• Receiving an 'Outstanding' Community Reinvestment Act Rating in January 2024.
• Total public fund deposits were $29.0 million, or 16% of total deposits, as of June 30, 2025.
• CEO Joe Zanco highlighted employee values including 'Connection' in Q1 2025 results.

These relationships help drive the bank's transition to a relationship-based community bank model.

Finance: draft 13-week cash view by Friday.

Catalyst Bancorp, Inc. (CLST) - Canvas Business Model: Key Activities

You're looking at the core engine of Catalyst Bancorp, Inc., the day-to-day work that keeps the lights on and the balance sheet moving as of late 2025. It all comes down to managing money-taking it in, putting it out, and managing the resulting assets.

Attracting and managing customer deposits is a primary function, especially in the current rate environment. Catalyst Bancorp, Inc. has been successful here, noting that new deposit customer acquisition remained strong through 2025. The total deposits reached $186.4 million as of September 30, 2025, which was a rise of $4.2 million, or 2%, from the previous quarter. This growth was explicitly attributed to competitive offerings like high-yield account specials. The average for total deposits during the third quarter of 2025 was $179.8 million.

The next step is originating and servicing commercial and retail loan portfolios. This is where the deposited funds are put to work. As of September 30, 2025, total loans stood at $164.8 million, representing a 2% contraction from the end of the second quarter. This contraction was driven by specific pay-offs, including a $4.6 million construction loan payoff. Still, the bank focuses on deploying capital into loans to fuel business and improve lives in the Acadiana region.

Here's a quick look at the loan book composition as of September 30, 2025, in thousands:

Strategic balance sheet management involves optimizing asset yields. Catalyst Bancorp, Inc. actively manages its investment securities portfolio to support yields. During the third quarter of 2025, investment securities grew by 35% QoQ to reach $59.8 million. This was supported by purchasing new mortgage-backed securities at a reported 5.17% average yield. The bank reported total assets of $283.8 million at September 30, 2025. The Net Interest Margin (NIM) for Q3 2025 was 3.88%.

Finally, the company is committed to executing share repurchase plans as a means of returning capital. Catalyst Bancorp, Inc. has been aggressive with this activity since early 2023. The cumulative number of shares repurchased since January 2023 through November 18, 2025, is 1,180,817 shares. These buybacks were executed at an average cost per share of $11.97. The board approved a new plan in November 2025, authorizing the repurchase of up to 205,000 shares, which is about 5% of outstanding common stock. In the third quarter alone, they bought back 13,212 shares at an average price of $12.93.

The key activities driving shareholder value look like this:

• Attracting deposits via high-yield specials to reach $186.4 million total deposits as of 9/30/2025.
• Maintaining a loan portfolio totaling $164.8 million, with C&I showing growth while real estate contracted.
• Deploying cash into securities, with new purchases yielding an average of 5.17%.
• Returning capital, having repurchased 1,180,817 shares since 2023.

Finance: draft 13-week cash view by Friday.

Catalyst Bancorp, Inc. (CLST) - Canvas Business Model: Key Resources

You're looking at the core assets that power Catalyst Bancorp, Inc.'s community bank model right now. These aren't abstract concepts; they are the tangible and human elements that make the business run day-to-day, especially as of late 2025.

The foundation of the balance sheet is the first thing to check. As of September 30, 2025, Catalyst Bancorp, Inc. reported $283.8 million in total assets. This asset base is what the entire operation is built upon, funding loans and investment securities.

A critical measure of stability is the capital position. The company maintains a strong capital base, evidenced by shareholders' equity reported at $81.6 million, which represents 28.7% of total assets. This ratio shows significant backing from the owners relative to the size of the bank's holdings.

The human element is concentrated and focused on the local market. The dedicated team consists of 49 employees committed to community banking operations. This lean structure supports the local, relationship-based model.

Physical presence remains key for a community bank in the Acadiana region. Catalyst Bank offers commercial and retail banking products through six full-service branch locations. These branches are strategically placed across Carencro, Eunice, Lafayette, Opelousas, and Port Barre.

Here's a quick snapshot of these primary physical and human resources as of the third quarter of 2025:

Beyond the core numbers, the resources also include the specific assets deployed to generate revenue. For instance, the investment securities portfolio was a growing resource, increasing to $59.8 million, or 21% of total assets, at September 30, 2025, with new purchases yielding an average of 5.17%.

The loan portfolio, the bank's primary earning asset, totaled $164.8 million at the same date. The composition of this resource base is important:

• One- to four-family residential loans: $78,373 thousand
• Commercial real estate loans: $33,679 thousand
• Construction and land loans: $18,850 thousand
• Commercial and industrial loans: $25,665 thousand

Also, the bank relies on its funding base, which is a resource in itself. Total deposits stood at $186.4 million at September 30, 2025. A portion of this, $30.5 million, was sourced from public funds, representing about 16% of total deposits.

Finance: draft 13-week cash view by Friday.

Catalyst Bancorp, Inc. (CLST) - Canvas Business Model: Value Propositions

You're looking at the core promises Catalyst Bancorp, Inc. makes to its market, which centers on deep local ties and strong capital backing. This isn't a national bank; it's a community player in south-central Louisiana's Acadiana region, focusing on relationship-based banking for small- to mid-sized businesses and professionals.

The bank's primary value proposition rests on its commitment to local economic growth, which is supported by a solid funding base. They successfully attracted new deposits, reaching $186.4 million as of September 30, 2025. This growth was partly attributed to competitive high-yield account specials. Still, you have to note that total deposits actually saw a slight dip to $180.6 million by March 31, 2025, from the prior year-end, showing the constant push and pull of public funds.

Catalyst Bancorp, Inc. offers a comprehensive set of financial tools, which is key for serving its local customer base. They provide both commercial and retail banking products. This means they help local individuals and businesses with their day-to-day banking needs and more complex lending requirements.

Financial strength is a major component of their offering, designed to give customers confidence in their local institution. The bank demonstrated this stability with a reported Common equity Tier 1 capital ratio of 46.95% at March 31, 2025. This high capital level, following balance sheet repositioning, suggests a strong buffer against unexpected losses. For context on their capital structure at that time, consolidated shareholders' equity stood at $80.6 million, representing 29.7% of total assets.

Here's a quick look at some key financial metrics supporting the stability proposition as of early to mid-2025:

The operational focus for Catalyst Bancorp, Inc. includes several key activities that define how they deliver value:

• Attracting deposits from the general public.
• Using those funds primarily to originate loans.
• Using funds to purchase investment securities, which grew to $59.8 million by September 30, 2025.
• Focusing on relationship-based community banking.

If you're looking at their risk profile, non-performing assets (NPAs) were $1.9 million as of September 30, 2025, which was 0.63% of total assets at March 31, 2025. The allowance for credit losses on loans was $2.5 million at March 31, 2025. Finance: draft 13-week cash view by Friday.

Catalyst Bancorp, Inc. (CLST) - Canvas Business Model: Customer Relationships

Catalyst Bancorp, Inc. operates as a holding company for Catalyst Bank, which serves customers in the Acadiana region of south-central Louisiana. The operational strategy centers on a shift to a relationship-based community bank model, targeting small- to mid-sized businesses and business professionals alongside the traditional customer base.

Personal, high-touch service through a local branch network.

The physical presence supports the high-touch service model, operating within a defined geographic area.

• Geographical Presence: Acadiana region of south-central Louisiana.
• Total full-service branches: 6.
• Branch locations include Carencro, Eunice, Lafayette, Opelousas, and Port Barre.

Relationship-deepening via targeted, competitive deposit products.

The primary business activity is attracting deposits from the general public to fund loan originations and investment securities. The team has been noted for attracting new deposit customers throughout 2025.

Competitive offerings, specifically high-yield account specials, were cited as successful in attracting new deposits and deepening relationships with existing customers during Q3 2025.

Direct engagement with local management and community leaders.

The focus on a community bank model implies direct engagement, as evidenced by the President and Chief Executive Officer, Joe Zanco, commenting directly on the team's success in attracting new deposit customers in 2025.

Automated digital services for transactional efficiency.

While the strategic direction for financial institutions in 2025 involves mastering basics to support digital maturity and engaging relevantly at scale, specific 2025 digital service metrics for Catalyst Bancorp, Inc. are not detailed in the latest filings.

Catalyst Bancorp, Inc. (CLST) - Canvas Business Model: Channels

You're looking at how Catalyst Bancorp, Inc. (CLST) physically and digitally connects with its customers and the market as of late 2025. The channels strategy here is clearly rooted in its Louisiana market presence, supported by necessary digital infrastructure for a public company.

Physical Branch Network

Catalyst Bank maintains a physical footprint across the Acadiana region of south-central Louisiana. This is the traditional core of their customer interaction for commercial and retail banking products. You can count on these locations for face-to-face service.

• Six full-service branch offices in operation.
• Locations include Carencro, Eunice, Lafayette, Opelousas, and Port Barre.
• Three branches are situated in St. Landry Parish, and two are in Lafayette Parish.

The bank is focused on a relationship-based community bank model, which relies heavily on these physical touchpoints for small- to mid-sized business and professional clients. Still, the overall scale of the operation is relatively contained, with Total Assets reported at $273.8 million as of June 30, 2025.

Digital and Mobile Banking Platforms

To compete today, Catalyst Bancorp, Inc. must offer robust digital access, even with a limited physical footprint. They provide both online banking and a mobile app for customer convenience. While specific CLST user adoption rates aren't public in the latest filings, the industry trend shows this is non-negotiable; in the U.S., 76% of adults use mobile banking apps in 2025. Furthermore, it's estimated that 80% of all bank transactions will be conducted through digital platforms in 2025. This suggests the digital channel is critical for transaction volume, even if loan origination still involves direct contact.

Direct Sales and Business Development Activities

Loan origination is a primary driver of revenue, and this is facilitated through direct sales and business development efforts. The CEO mentioned that their success rate for earning new business remains strong when opportunities arise. This channel focuses on deploying the bank's funds, which totaled $167.6 million in loans at June 30, 2025. The composition of the loan portfolio shows where these business development efforts are focused:

The loan-to-deposit ratio stood at 92% at June 30, 2025, indicating that the direct lending channel is actively utilizing customer deposits for growth.

Investor Relations Portal for Public Company Communication

As a publicly traded entity on NASDAQ (CLST), Catalyst Bancorp, Inc. must maintain a transparent channel for shareholders and the market. The Investor Relations section on their website serves this purpose, providing direct access to required regulatory and performance data. This channel is essential for managing public perception and capital structure activities, such as the recent announcement of a New Share Repurchase Plan approved by the Board of Directors on November 20, 2025. Key components of this channel include:

• Access to SEC Filings, including 10-Q reports like the one released for Q3 2025.
• Stock Information, including the NASDAQ ticker CLST and recent stock quotes.
• Governance documents and Executive Bios.

The financial results communicated through this channel for the third quarter of 2025 included Net Income of $489,000 and Basic Earnings Per Share of $0.13.

Catalyst Bancorp, Inc. (CLST) - Canvas Business Model: Customer Segments

Catalyst Bancorp, Inc. operates as a holding company for Catalyst Bank, serving customers within the Acadiana region of south-central Louisiana.

The Bank is actively transitioning its focus from a traditional thrift model to a relationship-based community bank model. This strategic shift targets specific customer groups for both deposits and lending activities.

Public Entities Segment Details

• Total public fund deposits were $30.5 million as of September 30, 2025.
• This public fund segment represented 16% of total deposits at quarter-end.
• Approximately 64% of these public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits at September 30, 2025.

Retail customers are a core segment, attracted by competitive deposit products. Total deposits reached $186.4 million on September 30, 2025. The Bank has seen success in this area by offering high-yield account specials.

The lending side of the business serves individuals and businesses through various loan types. Here's the breakdown of the total loan portfolio, which stood at $164.8 million as of September 30, 2025:

The focus on small- to mid-sized businesses is evident in the Commercial and Industrial loan category, which grew by 3% from the prior quarter. Residential mortgage borrowers are served through the largest loan segment, one- to four-family residential loans.

The Bank also offers other deposit products to its retail base:

• Demand and NOW accounts
• Money market accounts
• Savings accounts
• Certificates of deposit

The overall customer base is being cultivated to deepen relationships, as noted by management's comment on attracting new deposit customers in 2025.

Catalyst Bancorp, Inc. (CLST) - Canvas Business Model: Cost Structure

You're looking at the expense side of Catalyst Bancorp, Inc. (CLST)'s operations as of late 2025, which is heavily influenced by funding costs and personnel. The cost of money is definitely a key factor right now. For the third quarter of 2025, the weighted average rate on total interest-bearing liabilities rose to 2.62%. This rate increase meant total interest expense went up by $70,000, or 7%, compared to the second quarter of 2025, largely because of the full quarter impact from growth in high-yield savings account balances.

Personnel costs remain a significant, predictable outlay. Salaries and employee benefits expense for the third quarter of 2025 hit $1.3 million. That was an increase of $50,000, or 4%, over the prior quarter. Honestly, about half of that increase came from new share-based compensation grants in June 2025 and extra payroll tax expense related to existing stock awards vesting.

Overall, non-interest expenses for Catalyst Bancorp, Inc. totaled $2.2 million in Q3 2025. That's a small bump of $24,000, or 1%, from the second quarter of 2025. It's important to see where that money is going beyond salaries, so here's a quick look at the main components we have data for from that quarter:

When you look at the smaller buckets within non-interest expense, you see operational shifts. For instance, other non-interest expense was $211,000 in Q3 2025, which was actually down 10% from the previous quarter, mainly because loan collection related expenses declined. Professional fees were $91,000, down 20% from Q2 2025, which makes sense since the company incurred extra fees for its annual shareholders meeting in the second quarter.

You asked specifically about technology and marketing. While we don't have a standalone dollar figure for technology maintenance and core system upgrade costs, these fall under the general operating expenses within the total non-interest expense of $2.2 million. Similarly, advertising and marketing costs for deposit acquisition are baked into the overall operating structure. We do know that management noted success in attracting new deposit customers through high-yield specials, which suggests marketing spend is targeted there, but the specific advertising dollar amount isn't broken out in the Q3 2025 filings we have access to.

The cost structure is clearly sensitive to market rates, as shown by the rise in the interest-bearing liability rate. You should track that closely. Finance: draft 13-week cash view by Friday.

Catalyst Bancorp, Inc. (CLST) - Canvas Business Model: Revenue Streams

You're looking at how Catalyst Bancorp, Inc. (CLST) converts its assets into cash flow as of late 2025. Honestly, for a community bank like this, the revenue streams are pretty straightforward, centering on the spread between what they earn on assets and what they pay for liabilities.

The primary driver remains the Net interest income, which for the third quarter of 2025 was reported at $2.5 million, a slight dip of 1% compared to the second quarter of 2025. This income is generated from the loan portfolio, which totaled $164.767 million as of September 30, 2025. The bank is actively managing this asset base, though loan growth has been slow recently, with total loans down 2% from the prior quarter.

Here's a quick look at the loan portfolio composition as of September 30, 2025, in thousands of dollars:

The interest income from the investment securities portfolio is also a key component, especially given recent deployment. Total investment securities stood at $59.8 million at September 30, 2025, representing a 35% increase from June 30, 2025. This growth was supported by strategic purchases during the third quarter of 2025, which included:

• Purchases of $15.1 million in variable-rate government-sponsored mortgage-backed securities (MBS).
• Purchases of $1.1 million in fixed-rate government-sponsored MBS.

The weighted average yield on these securities purchased in the third quarter was 5.17% as of quarter-end. Total interest income for the quarter was up 2% (or $52,000) over the prior quarter, with the increase attributed to both loans and these investment securities.

Then you have the non-interest income, which is the smaller, fee-based revenue bucket. For the third quarter of 2025, non-interest income totaled $315,000. This was down 8% compared to the second quarter of 2025, reportedly due to customer refunds related to a corrected foreign ATM fee error. This stream includes fees from loan origination and service charges on deposit accounts.

Finally, the bottom line for the period reflects these combined activities. Catalyst Bancorp, Inc. reported net income of $489,000 for the third quarter of 2025. That compares to $521,000 in net income for the second quarter of 2025.

To keep this organized, here is the quarterly performance snapshot for the key revenue components:

Finance: draft 13-week cash view by Friday.