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What changed in Catalyst Bancorp, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Catalyst Bancorp, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+111 added−120 removedSource: 10-K (2025-03-28) vs 10-K (2024-03-28)

Top changes in Catalyst Bancorp, Inc.'s 2024 10-K

111 paragraphs added · 120 removed · 88 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

79 edited+23 added−30 removed41 unchanged
Biggest changeThe total provision for credit losses on loans and unfunded commitments was $128,000 for 2023, which was largely attributable to loan growth that necessitated additional loan provisions according to the Bank’s current expected credit losses model. ​ 33 Table of Contents The following table shows changes in our allowance for loan losses and other related data for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, (Dollars in thousands) 2023 ​ 2022 Allowance for loan losses: ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ $ 1,807 ​ $ 2,276 ​ Impact of adoption of ASC 326 ​ ​ 209 ​ ​ ​ - ​ Provision for (reversal of) loan losses ​ 87 ​ ​ (375) ​ Net loan recoveries (charge-offs): ​ ​ ​ ​ ​ One- to four-family residential ​ 42 ​ ​ (69) ​ Commercial real estate ​ - ​ ​ - ​ Construction and land ​ - ​ ​ - ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ 1 ​ ​ 1 ​ Consumer ​ (22) ​ ​ (26) ​ Total net recoveries (charge-offs) ​ 21 ​ ​ (94) ​ Balance, end of period ​ $ 2,124 ​ $ 1,807 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses on unfunded lending commitments: ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ $ - ​ $ - ​ Impact of adoption of ASC 326 ​ ​ 216 ​ ​ ​ - ​ Provision for (reversal of) credit losses on unfunded lending commitments ​ ​ 41 ​ ​ - ​ Balance, end of period ​ $ 257 ​ ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total allowance for credit losses, end of period ​ $ 2,381 ​ ​ $ 1,807 ​ Total provision for (reversal of) credit losses ​ ​ 128 ​ ​ ​ (375) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans at end of period ​ $ 144,920 ​ $ 133,607 ​ Total non-accrual loans at end of period ​ 1,967 ​ ​ 1,494 ​ Total non-performing loans at end of period ​ 1,991 ​ ​ 1,685 ​ Total average loans ​ ​ 135,713 ​ ​ ​ 132,503 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for loan losses as a percent of: ​ ​ ​ ​ ​ ​ ​ ​ Total loans ​ 1.47 % ​ ​ 1.35 % Non-accrual loans ​ 107.98 ​ ​ ​ 120.95 ​ Non-performing loans ​ 106.68 ​ ​ ​ 107.24 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net annualized recoveries (charge-offs) as a percent of average loans by portfolio: ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ ​ 0.05 % ​ ​ (0.08) % Commercial real estate ​ ​ - ​ ​ ​ - ​ Construction and land ​ ​ - ​ ​ ​ - ​ Multi-family residential ​ ​ - ​ ​ ​ - ​ Commercial and industrial ​ ​ 0.01 ​ ​ ​ 0.01 ​ Consumer ​ ​ (0.71) ​ ​ ​ (0.66) ​ Total loans ​ ​ 0.02 ​ ​ ​ (0.07) ​ ​ ​ 34 Table of Contents Non-performing Assets .
Biggest changeThe total provision for credit losses on loans and unfunded commitments was $531,000 for 2024 and was largely attributable to commercial loan growth and an increase in the allowance for credit losses on individually evaluated loans. ​ 34 Table of Contents The following table shows changes in our allowance for loan losses and other related data for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ (Dollars in thousands) 2024 ​ 2023 ​ Allowance for loan losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ $ 2,124 ​ $ 1,807 ​ ​ Impact of adoption of ASC 326 ​ ​ - ​ ​ ​ 209 ​ ​ Provision for loan losses ​ 667 ​ ​ 87 ​ ​ Net loan (charge-offs) recoveries: ​ ​ ​ ​ ​ ​ One- to four-family residential ​ (92) ​ ​ 42 ​ ​ Commercial real estate ​ (14) ​ ​ - ​ ​ Construction and land ​ - ​ ​ - ​ ​ Multi-family residential ​ - ​ ​ - ​ ​ Commercial and industrial ​ (128) ​ ​ 1 ​ ​ Consumer ​ (35) ​ ​ (22) ​ ​ Total net (charge-offs) recoveries ​ (269) ​ ​ 21 ​ ​ Balance, end of period ​ $ 2,522 ​ $ 2,124 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses on unfunded lending commitments: ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ $ 257 ​ $ - ​ ​ Impact of adoption of ASC 326 ​ ​ - ​ ​ ​ 216 ​ ​ Provision for (reversal of) credit losses on unfunded lending commitments ​ ​ (136) ​ ​ 41 ​ ​ Balance, end of period ​ $ 121 ​ ​ $ 257 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total allowance for credit losses, end of period ​ $ 2,643 ​ ​ $ 2,381 ​ ​ Total provision for credit losses ​ ​ 531 ​ ​ ​ 128 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans at end of period ​ $ 167,076 ​ $ 144,920 ​ ​ Total non-accrual loans at end of period ​ 1,567 ​ ​ 1,967 ​ ​ Total non-performing loans at end of period ​ 1,631 ​ ​ 1,991 ​ ​ Total average loans ​ ​ 155,867 ​ ​ ​ 135,713 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for loan losses as a percent of: ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans ​ 1.51 % ​ ​ 1.47 % ​ Non-accrual loans ​ 160.94 ​ ​ ​ 107.98 ​ ​ Non-performing loans ​ 154.63 ​ ​ ​ 106.68 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net annualized (charge-offs) recoveries as a percent of average loans by portfolio: ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ ​ (0.11) % ​ ​ 0.05 % ​ Commercial real estate ​ ​ (0.06) ​ ​ ​ - ​ ​ Construction and land ​ ​ - ​ ​ ​ - ​ ​ Multi-family residential ​ ​ - ​ ​ ​ - ​ ​ Commercial and industrial ​ ​ (0.56) ​ ​ ​ 0.01 ​ ​ Consumer ​ ​ (1.51) ​ ​ ​ (0.71) ​ ​ Total loans ​ ​ (0.17) ​ ​ ​ 0.02 ​ ​ ​ ​ 35 Table of Contents Non-performing Assets .
The following table shows the extent to which changes in interest rates and changes in volume of interest-earning assets and interest-bearing liabilities affected our interest income and expense during the periods indicated.
The following table shows the extent to which changes in interest rates and changes in volume of interest-earning assets and interest-bearing liabilities affected our interest income and interest expense during the periods indicated.
Since August 2020, the Company has made several personnel changes and additional new hires, including but not limited to: a new President and CEO, Director of Operations, Acadiana Market President, Chief Financial Officer, Chief Risk Officer and several commercial bankers. Recruiting and retaining talented individuals to guide us through the implementation of our business strategy is critical to our success.
Since August 2020, the Company has made several personnel changes and additional hires, including but not limited to: a new President and CEO, Chief Operations Officer, Acadiana Market President, Chief Financial Officer, Chief Risk Officer and several commercial bankers. Recruiting and retaining talented individuals to guide us through the implementation of our business strategy is critical to our success.
The following table shows for the periods indicated the total dollar amount of interest from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Taxable equivalent (“TE”) yields have been calculated using a marginal tax rate of 21%.
The following table shows for the periods indicated the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Taxable equivalent (“TE”) yields have been calculated using a marginal tax rate of 21%.
Calculated net of deferred fees and discounts and loans in process. (2) Average investment securities does not include unrealized holding gains/ losses on available-for-sale securities. (3) Equals net interest income divided by average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%. ​ 40 Table of Contents Rate/Volume Analysis.
Calculated net of deferred fees and discounts and loans in process. (2) Average investment securities does not include unrealized holding gains/losses on available-for-sale securities. (3) Equals net interest income divided by average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%. ​ 41 Table of Contents Rate/Volume Analysis.
Foreclosed assets consist of real estate acquired through foreclosure or real estate acquired by acceptance of a deed-in-lieu of foreclosure. (6) Capital ratios are end of period ratios for the Bank only. ​ 31 Table of Contents Comparison of Financial Condition at December 31, 2023 and December 31, 2022 Total Assets .
Foreclosed assets consist of real estate acquired through foreclosure or real estate acquired by acceptance of a deed-in-lieu of foreclosure. (6) Capital ratios are end of period ratios for the Bank only. ​ 31 Table of Contents Comparison of Financial Condition at December 31, 2024 and December 31, 2023 Total Assets .
Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities.
Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities or sales of securities.
In addition to a new name, our re-branding efforts included new marketing campaigns, updated on-line and website materials and new signage and logos to capture and reflect the mission of the bank. ● Manage credit risk to limit non-performing assets. We believe that strong asset quality is a key to long-term financial success.
In addition to a new name, our re-branding efforts included new marketing campaigns, updated online and website materials and new signage and logos to capture and reflect the mission of the Bank. ● Manage credit risk to limit non-performing assets. We believe that strong asset quality is a key to long-term financial success.
To the extent that actual outcomes differ from management’s estimates, additional provisions to the allowance for credit losses may be required that would adversely impact earnings in future periods. Investment Securities. Available-for-sale securities consist of investment securities not classified as trading securities or held-to-maturity securities.
To the extent that actual outcomes differ from management’s estimates, additional provisions to the allowance for credit losses may be required that would adversely impact earnings in future periods. 28 Table of Contents Investment Securities. Available-for-sale securities consist of investment securities not classified as trading securities or held-to-maturity securities.
While management is responsible for the establishment of the allowance for credit losses and for adjusting such allowance through provisions for credit losses, management may determine, as a result of 28 Table of Contents such regulatory reviews, that an increase or decrease in the allowance or provision for credit losses may be necessary or that loan charge-offs are needed.
While management is responsible for the establishment of the allowance for credit losses and for adjusting such allowance through provisions for credit losses, management may determine, as a result of such regulatory reviews, that an increase or decrease in the allowance or provision for credit losses may be necessary or that loan charge-offs are needed.
Weighted average yields are calculated by dividing the estimated annual income divided by the average amortized cost of the applicable securities. ​ The following table sets forth the dollar value of our investment securities which have fixed interest rates or which have floating or adjustable interest rates at each of the dates indicated . ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, (Dollars in thousands) ​ ​ 2023 ​ ​ 2022 Fixed-rate ​ ​ Available-for-sale $ 70,498 $ 79,552 Held-to-maturity ​ ​ 13,461 ​ ​ 13,475 Total fixed-rate ​ ​ 83,959 ​ ​ 93,027 ​ ​ ​ ​ ​ ​ ​ Adjustable-rate ​ ​ ​ ​ ​ Available-for-sale ​ 42 ​ 50 Held-to-maturity ​ ​ - ​ ​ - Total adjustable-rate ​ ​ 42 ​ ​ 50 Total investment securities ​ $ 84,001 ​ $ 93,077 ​ ​ Deposits .
Weighted average yields are calculated by dividing the estimated annual income divided by the average amortized cost of the applicable securities. ​ The following table sets forth the dollar value of our investment securities which have fixed interest rates or which have floating or adjustable interest rates at each of the dates indicated . ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, (Dollars in thousands) ​ ​ 2024 ​ ​ 2023 Fixed-rate ​ ​ Available-for-sale $ 28,679 $ 70,498 Held-to-maturity ​ ​ 13,447 ​ ​ 13,461 Total fixed-rate ​ ​ 42,126 ​ ​ 83,959 ​ ​ ​ ​ ​ ​ ​ Adjustable-rate ​ ​ ​ ​ ​ Available-for-sale ​ 33 ​ 42 Held-to-maturity ​ ​ - ​ ​ - Total adjustable-rate ​ ​ 33 ​ ​ 42 Total investment securities ​ $ 42,159 ​ $ 84,001 ​ ​ Deposits .
We also have the ability to borrow from the FHLB, Federal Reserve Bank of Atlanta, and our primary correspondent bank. At December 31, 2023, our borrowed funds consisted of a $10 million BTFP advance and FHLB advances with a carrying value of $9.4 million.
We also have the ability to borrow from the FHLB, Federal Reserve Bank of Atlanta, and our primary correspondent bank. At December 31, 2024, our borrowed funds consisted of FHLB advances with a net carrying value of $9.6 million.
We have implemented a strategy of prudent growth. We believe we have an opportunity to grow organically by focusing on building relationships with small- to mid-sized businesses and business professionals in our market area and by enhancing the products and services we offer.
We have implemented a strategy of prudent growth. We believe we have an opportunity to grow organically by focusing on building relationships with small- to mid-sized businesses and business professionals in our market area and by enhancing the products and services we offer. During the first quarter of 2024, the Company converted to a new core processing system.
Total investment securities, available-for-sale and held-to-maturity, amounted to $84.0 million at December 31, 2023, down $9.1 million, or 9.8%, compared to $93.1 million in investment securities at December 31, 2022. Net unrealized losses on securities available-for-sale totaled $9.2 million at December 31, 2023, compared to $11.5 million at December 31, 2022.
Total investment securities, available-for-sale and held-to-maturity, amounted to $42.2 million at December 31, 2024, down $41.8 million, or 49.8%, compared to $84.0 million in investment securities at December 31, 2023. Net unrealized losses on securities available-for-sale totaled $4.5 million at December 31, 2024, compared to $9.2 million at December 31, 2023.
Total uninsured non-public funds deposits were approximately $26.3 million and $26.9 million at December 31, 2023 and 2022, respectively.
Total uninsured non-public funds deposits were approximately $22.5 million and $26.3 million at December 31, 2024 and 2023, respectively.
The following table sets forth the composition of our securities portfolio as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2023 ​ 2022 (Dollars in thousands) Amortized Cost % of Total ​ Fair Value Amortized Cost ​ % of Total Fair Value Securities available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ 65,704 ​ 70.5 % ​ $ 57,512 ​ $ 74,044 ​ 70.8 % ​ $ 64,167 U.S.
The following table sets forth the composition of our securities portfolio as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 ​ 2023 (Dollars in thousands) Amortized Cost % of Total ​ Fair Value Amortized Cost ​ % of Total Fair Value Securities available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ 31,511 ​ 67.5 % ​ $ 27,202 ​ $ 65,704 ​ 70.5 % ​ $ 57,512 U.S.
Consideration is given to the extent to which that fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period sufficient to allow for any anticipated recovery in fair value. ​ For reporting periods prior to January 1, 2023, management evaluated securities for other-than-temporary impairment.
Consideration is given to the extent to which that fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period sufficient to allow for any anticipated recovery in fair value.
Shareholders’ equity totaled $84.7 million, or 31.2% of total assets, at December 31, 2023, down $3.9 million, or 4.4%, from $88.5 million, or 33.6% of total assets, at December 31, 2022. During 2023, shareholders’ equity decreased by $6.3 million due to the Company’s repurchases of its common stock.
Shareholders’ equity totaled $80.2 million, or 29.0% of total assets, at December 31, 2024, down $4.4 million, or 5.2%, from $84.6 million, or 31.2% of total assets, at December 31, 2023. During 2024, shareholders’ equity decreased by $5.8 million due to the Company’s repurchases of its common stock.
The change in income taxes over the comparable periods was primarily due to the increase in taxable earnings during 2023. ​ ​ 43 Table of Contents Exposure to Changes in Interest Rates Our ability to maintain net interest income depends upon our ability to earn a higher yield on interest-earning assets than the rates we pay on deposits and borrowings.
The change in income taxes over the comparable periods was largely due to the loss on sales of investment securities in 2024. ​ ​ 44 Table of Contents Exposure to Changes in Interest Rates Our ability to maintain net interest income depends upon our ability to earn a higher yield on interest-earning assets than the rates we pay on deposits and borrowings.
The average rate earned on our investment securities portfolio was 1.66% for the year ended December 31, 2023, up 23 basis points compared to 1.43% for 2022.
The average rate earned on our investment securities portfolio was 1.97% for the year ended December 31, 2024, up 31 basis points compared to 1.66% for 2023 primarily due to investment securities purchased during 2024.
Deferred prepayment penalties on our FHLB advances totaled $622,000 and $802,000 at December 31, 2023 and 2022, respectively. 38 Table of Contents The following table shows certain information regarding our borrowings at or for the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Year Ended ​ ​ December 31, (Dollars in thousands) ​ 2023 ​ 2022 Advance from Federal Reserve Bank of Atlanta ​ ​ ​ ​ Average balance ​ $ 923 ​ ​ $ - ​ Maximum balance at any month-end during the period ​ 10,000 ​ ​ ​ - ​ Balance at end of period ​ 10,000 ​ ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average interest rate during the period ​ 4.95 % ​ - % Weighted average interest rate at end of period (1) ​ 4.83 ​ ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Advances from FHLB ​ ​ ​ ​ Average balance ​ $ 9,285 ​ ​ $ 9,294 ​ Maximum balance at any month-end during the period ​ 9,378 ​ ​ ​ 9,198 ​ Balance at end of period ​ 9,378 ​ ​ 9,198 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average interest rate during the period ​ 2.94 % ​ 3.02 % Weighted average interest rate at end of period (1) ​ 0.93 ​ ​ 0.93 ​ (1) Reflects the weighted average contractual rate of advances. ​ Shareholders’ Equity .
The following table shows certain information regarding our borrowings at or for the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Year Ended ​ ​ December 31, (Dollars in thousands) ​ 2024 ​ 2023 Advance from Federal Reserve Bank of Atlanta ​ ​ ​ ​ Average balance ​ $ 16,918 ​ ​ $ 923 ​ Maximum balance at any month-end during the period ​ 21,000 ​ ​ ​ 10,000 ​ Balance at end of period ​ - ​ ​ 10,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average interest rate during the period ​ 4.81 % ​ 4.95 % Weighted average interest rate at end of period (1) ​ - ​ ​ 4.83 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Advances from FHLB ​ ​ ​ ​ Average balance ​ $ 9,475 ​ ​ $ 9,285 ​ Maximum balance at any month-end during the period ​ 10,261 ​ ​ ​ 9,378 ​ Balance at end of period ​ 9,558 ​ ​ 9,378 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average interest rate during the period ​ 2.89 % ​ 2.94 % Weighted average interest rate at end of period (1) ​ 0.93 ​ ​ 0.93 ​ (1) Reflects the weighted average contractual rate of advances. ​ Shareholders’ Equity .
At December 31, 2023 and 2022, net unrealized losses on available-for-sale securities totaled $9.2 million and $11.5 million, respectively. Unrealized losses on our available-for-sale securities relate principally to the increases in market rates of similar types of securities.
The fair market values of investment securities are classified within Level 2 of the fair value hierarchy. At December 31, 2024 and 2023, net unrealized losses on available-for-sale securities totaled $4.5 million and $9.2 million, respectively. Unrealized losses on our available-for-sale securities relate principally to the increases in market rates of similar types of securities.
The following table summarizes the results of our net interest income model as of December 31, 2023, which estimates the impact of immediate and sustained changes in interest rates on net interest income over the following twelve months. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) Net Interest Income $ Change % Change Change in Interest Rates in Basis Points (Rate Shock): ​ ​ ​ ​ ​ ​ ​ ​ 200 ​ $ 7,758 ​ $ (714) (8.4) % 100 ​ 7,704 ​ (768) (9.1) ​ Static ​ 7,705 ​ (767) (9.1) ​ (100) ​ 8,314 ​ (158) (1.9) ​ (200) ​ 7,974 ​ (498) (5.9) ​ ​ ​ The above table indicates that as of December 31, 2023, in the event of an immediate and sustained 100 basis point decrease in interest rates, our net interest income for the 12 months ending December 31, 2024 would be expected to decrease by $158,000 or 1.9%.
The following table summarizes the results of our net interest income model as of December 31, 2024, which estimates the impact of immediate and sustained changes in interest rates on net interest income over the following twelve months. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) Net Interest Income $ Change % Change Change in Interest Rates in Basis Points (Rate Shock): ​ ​ ​ ​ ​ ​ ​ ​ 200 ​ $ 11,173 ​ $ 852 8.3 % 100 ​ 10,754 ​ 433 4.2 ​ Static ​ 10,321 ​ - - ​ (100) ​ 10,121 ​ (200) (1.9) ​ (200) ​ 9,655 ​ (666) (6.5) ​ ​ ​ The above table indicates that as of December 31, 2024, in the event of an immediate and sustained 100 basis point decrease in interest rates, our net interest income for the 12 months ending December 31, 2025 would be expected to decrease by $200,000 or 1.9%.
The Company can allocate portions of this letter of credit to collateralize certain deposit balances in excess of the FDIC’s insurance limit as an alternative to pledging investment securities for the same purpose.
The Company can allocate portions of this letter of credit to collateralize certain deposit balances in excess of the FDIC’s insurance limit as an alternative to pledging investment securities for the same purpose. At December 31, 2024, the Company used $25.0 million of the FHLB custodial letter of credit to collateralize public fund deposits.
The BEA Program grants awards to depository institutions that have successfully increased their investments in economically distressed communities through certain qualified activities, including investments in CDFIs and providing loans, investments and financial services to businesses and residents located in distressed communities. Non-interest income for 2023 also included the $92,000 loss on the sale of investment securities discussed previously.
The BEA Program grants awards to depository institutions that have successfully increased their investments in economically distressed communities through certain qualified activities, including investments in CDFIs and providing loans, investments and financial services to businesses and residents located in distressed communities. Non-interest Expense .
The change in the carrying value of our FHLB advances reflects the amortization of deferred prepayment penalties on $10.0 million in advances restructured in December of 2020.
The change in the carrying value of our FHLB advances reflects the amortization of deferred prepayment penalties on $10.0 million in advances restructured in December of 2020. Deferred prepayment penalties on our FHLB advances totaled $442,000 and $622,000 at December 31, 2024 and 2023, respectively.
The majority of our interest-earning assets largely consist of fixed-rate investment securities and adjustable rate residential and commercial mortgage loans. Consequently, our ability to maintain a positive spread between the interest earned on assets and the interest paid on deposits and borrowings can be adversely affected when market rates of interest change.
Consequently, our ability to maintain a positive spread between the interest earned on assets and the interest paid on deposits and borrowings can be adversely affected when market rates of interest change.
The following table sets forth our EVE as of December 31, 2023 and reflects the changes to EVE as a result of immediate and sustained changes in interest rates as indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Economic Value of Equity ​ EVE as % of Fair Value of Assets (Dollars in thousands) Amount $ Change % Change ​ EVE Ratio Change Change in Interest Rates In Basis Points (Rate Shock): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 200 ​ $ 85,544 ​ $ (3,604) (4.0) % ​ 34.9 0.1 % 100 ​ 86,902 ​ (2,246) (2.5) ​ 34.6 (0.2) ​ Static ​ 89,148 ​ - - ​ 34.8 - ​ (100) ​ 94,139 ​ 4,991 5.6 ​ 36.1 1.3 ​ (200) ​ 97,006 ​ 7,858 8.8 ​ 36.4 1.6 ​ ​ 44 Table of Contents Liquidity and Capital Resources The Company maintains levels of liquid assets deemed adequate by management.
The following table sets forth our EVE as of December 31, 2024 and reflects the changes to EVE as a result of immediate and sustained changes in interest rates as indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Economic Value of Equity ​ EVE as % of Fair Value of Assets (Dollars in thousands) Amount $ Change % Change ​ EVE Ratio Change Change in Interest Rates In Basis Points (Rate Shock): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 200 ​ $ 86,200 ​ $ (1,990) (2.3) % ​ 33.3 0.4 % 100 ​ 87,299 ​ (891) (1.0) ​ 33.1 0.2 ​ Static ​ 88,190 ​ - - ​ 32.9 - ​ (100) ​ 89,567 ​ 1,377 1.6 ​ 32.9 - ​ (200) ​ 89,777 ​ 1,587 1.8 ​ 32.5 (0.4) ​ ​ 45 Table of Contents Liquidity and Capital Resources The Company maintains levels of liquid assets deemed adequate by management.
Government and agency obligations ​ ​ 13,003 ​ 14.0 ​ ​ 10,793 ​ 13,006 ​ 12.4 ​ ​ 10,288 Municipal obligations ​ 458 ​ 0.5 ​ ​ 434 ​ 469 ​ 0.5 ​ ​ 436 Total securities held to maturity ​ ​ 13,461 ​ 14.5 ​ ​ 11,227 ​ 13,475 ​ 12.9 ​ ​ ​ 10,724 Total investment securities ​ $ 93,162 ​ 100.0 % ​ $ 81,767 ​ $ 104,563 ​ 100.0 % $ 90,326 ​ The following table presents the amortized cost of our total investment securities portfolio that matures during each of the periods indicated and the weighted average yields for each range of maturities at December 31, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contractual Maturity as of December 31, 2023 (Dollars in thousands) ​ One Year or Less ​ After One Through Five Years ​ After Five Through Ten Years ​ Over Ten Years ​ Total Total investment securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ - ​ ​ $ 4,528 ​ ​ $ 10,405 ​ ​ $ 50,771 ​ ​ $ 65,704 ​ U.S.
Government and agency obligations ​ ​ 13,000 ​ 27.9 ​ ​ 10,860 ​ 13,003 ​ 14.0 ​ ​ 10,793 Municipal obligations ​ 447 ​ 0.9 ​ ​ 424 ​ 458 ​ 0.5 ​ ​ 434 Total securities held to maturity ​ ​ 13,447 ​ 28.8 ​ ​ 11,284 ​ 13,461 ​ 14.5 ​ ​ ​ 11,227 Total investment securities ​ $ 46,662 ​ 100.0 % ​ $ 39,996 ​ $ 93,162 ​ 100.0 % $ 81,767 ​ The following table presents the amortized cost of our total investment securities portfolio that matures during each of the periods indicated and the weighted average yields for each range of maturities at December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contractual Maturity as of December 31, 2024 (Dollars in thousands) ​ One Year or Less ​ After One Through Five Years ​ After Five Through Ten Years ​ Over Ten Years ​ Total Total investment securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ - ​ ​ $ 5,351 ​ ​ $ 445 ​ ​ $ 25,715 ​ ​ $ 31,511 ​ U.S.
The information at and for the years ended December 31, 2023 and 2022 is derived from the audited financial statements that appear elsewhere in this Annual Report on Form 10-K. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, (Dollars in thousands) ​ 2023 ​ 2022 Selected Financial Condition Data: ​ Total assets ​ $ 270,932 ​ $ 263,362 Cash and cash equivalents ​ 19,011 ​ 13,472 Investment securities: ​ ​ Available for sale ​ 70,540 ​ 79,602 Held to maturity ​ 13,461 ​ 13,475 Loans receivable, net of unearned income ​ 144,920 ​ 133,607 Allowance for loan losses ​ ​ 2,124 ​ ​ 1,807 Total deposits ​ 165,622 ​ 165,094 Borrowings ​ 19,378 ​ 9,198 Shareholders’ equity ​ 84,655 ​ 88,512 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, (Dollars in thousands) ​ 2023 ​ 2022 Selected Operating Data: ​ ​ ​ ​ Total interest income ​ $ 9,661 ​ $ 8,014 ​ Total interest expense ​ 1,860 ​ 683 ​ Net interest income ​ 7,801 ​ 7,331 ​ Provision for (reversal of) credit losses ​ 128 ​ (375) ​ Net interest income after provision for (reversal of) credit losses ​ 7,673 ​ 7,706 ​ Total non-interest income ​ 1,589 ​ 1,173 ​ Total non-interest expense ​ 8,579 ​ 8,720 ​ Income (loss) before income taxes ​ 683 ​ 159 ​ Income tax expense (benefit) ​ 81 ​ (21) ​ Net income ​ $ 602 ​ $ 180 ​ ​ ​ ​ ​ ​ ​ ​ ​ Selected Performance Ratios: (1) ​ ​ ​ Average yield on interest-earning assets ​ 3.83 % 3.00 % Average rate on interest-bearing liabilities ​ 1.27 ​ 0.44 ​ Average interest rate spread (2) ​ 2.56 ​ 2.56 ​ Net interest margin (2) ​ 3.10 ​ 2.75 ​ Average interest-earning assets to average interest-bearing liabilities ​ 172.40 ​ 170.73 ​ Net interest income after provision for loan losses to non-interest expense ​ 89.44 ​ 88.37 ​ Total non-interest expense to average assets ​ 3.22 ​ 3.08 ​ Efficiency ratio (3) ​ 91.36 ​ 102.55 ​ Return on average assets (ratio of net income to average total assets) ​ 0.23 ​ 0.06 ​ Return on average equity (ratio of net income to average total equity) ​ 0.71 ​ 0.19 ​ ​ 30 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the ​ ​ Year Ended December 31, ​ ​ 2023 ​ 2022 Asset Quality Ratios: (4) ​ ​ ​ Non-accrual loans as a percent of total loans outstanding ​ 1.36 % ​ 1.12 % Non-performing assets as a percent of total assets (5) ​ 0.76 ​ ​ 0.76 ​ Allowance for loan losses as a percent of total loans outstanding ​ 1.47 ​ ​ 1.35 ​ Allowance for loan losses as a percent of non-performing loans ​ 106.68 ​ ​ 107.24 ​ Net (charge-offs) recoveries to average loans receivable ​ 0.02 ​ ​ (0.07) ​ ​ ​ ​ ​ ​ ​ ​ Capital Ratios: (6) ​ ​ ​ Common equity Tier 1 capital ​ 52.34 % ​ 56.17 % Tier 1 leverage capital ​ 31.67 ​ ​ 30.37 ​ Tier 1 risk-based capital ​ 52.34 ​ ​ 56.17 ​ Total risk-based capital ​ 53.59 ​ ​ 57.42 ​ Average equity to average assets ​ 31.79 ​ ​ 32.91 ​ ​ ​ ​ ​ ​ ​ ​ Other Data: ​ ​ ​ Banking offices ​ 6 ​ 6 ​ Full-time equivalent employees ​ 48 ​ 50 ​ (1) With the exception of end of period ratios, all ratios are based on average daily balances during the indicated periods.
The information at and for the years ended December 31, 2024 and 2023 is derived from the audited financial statements that appear elsewhere in this Annual Report on Form 10-K. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, (Dollars in thousands) ​ 2024 ​ 2023 Selected Financial Condition Data: ​ Total assets ​ $ 276,697 ​ $ 270,932 Cash and cash equivalents ​ 44,295 ​ 19,011 Investment securities: ​ ​ Available for sale ​ 28,712 ​ 70,540 Held to maturity ​ 13,447 ​ 13,461 Loans receivable, net of unearned income ​ 167,076 ​ 144,920 Allowance for loan losses ​ ​ 2,522 ​ ​ 2,124 Total deposits ​ 185,674 ​ 165,622 Borrowings ​ 9,558 ​ 19,378 Shareholders’ equity ​ 80,204 ​ 84,559 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, (Dollars in thousands) ​ 2024 ​ 2023 Selected Operating Data: ​ ​ ​ ​ Total interest income ​ $ 13,862 ​ $ 9,661 ​ Total interest expense ​ 4,317 ​ 1,956 ​ Net interest income ​ 9,545 ​ 7,705 ​ Provision for credit losses ​ 531 ​ 128 ​ Net interest income after provision for credit losses ​ 9,014 ​ 7,577 ​ Total non-interest income (loss) ​ (3,840) ​ 1,589 ​ Total non-interest expense ​ 9,157 ​ 8,579 ​ Income (loss) before income taxes ​ (3,983) ​ 587 ​ Income tax expense (benefit) ​ (894) ​ 61 ​ Net income (loss) ​ $ (3,089) ​ $ 526 ​ ​ ​ ​ ​ ​ ​ ​ ​ Selected Performance Ratios: (1) ​ ​ ​ Average yield on interest-earning assets ​ 5.30 % 3.83 % Average rate on interest-bearing liabilities ​ 2.54 ​ 1.33 ​ Average interest rate spread (2) ​ 2.76 ​ 2.50 ​ Net interest margin (2) ​ 3.65 ​ 3.06 ​ Average interest-earning assets to average interest-bearing liabilities ​ 154.24 ​ 172.40 ​ Net interest income after provision for loan losses to non-interest expense ​ 98.44 ​ 88.32 ​ Total non-interest expense to average assets ​ 3.25 ​ 3.22 ​ Efficiency ratio (3) ​ 160.51 ​ 92.29 ​ Return on average assets (ratio of net income (loss) to average total assets) ​ (1.10) ​ 0.20 ​ Return on average equity (ratio of net income (loss) to average total equity) ​ (3.79) ​ 0.62 ​ ​ 30 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the ​ ​ Year Ended December 31, ​ ​ 2024 ​ 2023 Asset Quality Ratios: (4) ​ ​ ​ Non-accrual loans as a percent of total loans outstanding ​ 0.94 % ​ 1.36 % Non-performing assets as a percent of total assets (5) ​ 0.66 ​ ​ 0.76 ​ Allowance for loan losses as a percent of total loans outstanding ​ 1.51 ​ ​ 1.47 ​ Allowance for loan losses as a percent of non-performing loans ​ 154.63 ​ ​ 106.68 ​ Net (charge-offs) recoveries to average loans receivable ​ (0.17) ​ ​ 0.02 ​ ​ ​ ​ ​ ​ ​ ​ Capital Ratios: (6) ​ ​ ​ Common equity Tier 1 capital ​ 45.81 % ​ 52.34 % Tier 1 leverage capital ​ 28.73 ​ ​ 31.67 ​ Tier 1 risk-based capital ​ 45.81 ​ ​ 52.34 ​ Total risk-based capital ​ 47.06 ​ ​ 53.59 ​ Average equity to average assets ​ 28.91 ​ ​ 31.79 ​ ​ ​ ​ ​ ​ ​ ​ Other Data: ​ ​ ​ Banking offices ​ 6 ​ 6 ​ Full-time equivalent employees ​ 49 ​ 48 ​ (1) With the exception of end of period ratios, all ratios are based on average daily balances during the indicated periods.
During 2023 and 2022, the Company recognized income of $437,000 and $171,000, respectively, due to Bank Enterprise Award (“BEA”) Program grants received from the Community Financial Institution (“CDFI”) Fund. During 2022, the Company officially changed the name of the Bank to Catalyst Bank and incurred pre-tax costs of $269,000. Interest Income.
During 2024 and 2023, the Company recognized income of $280,000 and $437,000, respectively, due to the Bank Enterprise Award (“BEA”) Program grants received from the Community Financial Institution (“CDFI”) Fund.
Total interest income increased $1.6 million, or 20.6%, to $9.7 million for the year ended December 31, 2023, compared to 2022. Interest income on loans, investment securities, and other interest-earning assets were up by $1.1 million, $163,000, and $373,000, respectively.
Total interest income increased $4.2 million, or 43.5%, to $13.9 million for the year ended December 31, 2024, compared to 2023. Interest income on loans and other interest-earning assets were up by $2.9 million and $1.9 million, respectively, for the year ended December 31, 2024, compared to 2023.
Persistent inflation and a decline in state government assistance impacted our residential borrowers in both 2022 and 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, (Dollars in thousands) ​ 2023 ​ 2022 Non-accruing loans ​ ​ ​ ​ ​ One- to four-family residential ​ $ 1,875 ​ $ 1,392 ​ Commercial real estate ​ 50 ​ ​ 51 ​ Construction and land ​ 42 ​ ​ 51 ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ ​ - ​ ​ - ​ Consumer ​ - ​ ​ - ​ Total non-accruing loans ​ ​ 1,967 ​ ​ 1,494 ​ Accruing loans 90 days or more past due ​ ​ ​ ​ One- to four-family residential ​ 24 ​ ​ 191 ​ Commercial real estate ​ - ​ ​ - ​ Construction and land ​ - ​ ​ - ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ ​ - ​ ​ - ​ Consumer ​ - ​ ​ - ​ Total accruing loans 90 days or more past due ​ ​ 24 ​ ​ 191 ​ Total non-performing loans ​ ​ 1,991 ​ ​ 1,685 ​ Foreclosed assets ​ ​ 60 ​ ​ 320 ​ Total non-performing assets ​ ​ 2,051 ​ ​ 2,005 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans ​ $ 144,920 ​ $ 133,607 ​ Total assets ​ ​ 270,932 ​ ​ 263,362 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total non-accruing loans as a percentage of total loans ​ ​ 1.36 % ​ ​ 1.12 % Total non-performing loans as a percentage of total loans ​ ​ 1.37 ​ ​ ​ 1.26 ​ Total non-performing loans as a percentage of total assets ​ ​ 0.73 ​ ​ ​ 0.64 ​ Total non-performing assets as a percentage of total assets ​ ​ 0.76 ​ ​ ​ 0.76 ​ ​ ​ The following table shows how our allowance for loan losses is allocated by type of loan at each of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2023 ​ 2022 (Dollars in thousands) Amount of Allowance Percent of Allowance to Total Allowance ​ Percent of Loans in Category to Total Loans ​ Amount of Allowance Percent of Allowance to Total Allowance ​ Percent of Loans in Category to Total Loans One-to four-family residential ​ $ 1,240 ​ 58.4 % ​ 57.7 % ​ $ 1,224 ​ 67.7 % ​ 65.5 % Commercial real estate ​ 213 10.0 ​ ​ 14.8 ​ ​ 248 13.7 ​ 14.5 ​ Construction and land ​ 283 13.3 ​ ​ 9.6 ​ ​ 74 4.1 ​ 4.6 ​ Multi-family residential ​ 50 2.4 ​ ​ 2.3 ​ ​ 40 2.2 ​ 2.4 ​ Commercial and industrial ​ 302 14.2 ​ ​ 13.8 ​ ​ 175 9.7 ​ 10.4 ​ Consumer ​ 36 1.7 ​ ​ 1.8 ​ ​ 46 2.6 ​ 2.6 ​ Total ​ $ 2,124 ​ 100.0 % ​ 100.0 % ​ $ 1,807 ​ 100.0 % ​ 100.0 % ​ 35 Table of Contents Investment Securities .
The following table shows the amounts of our non-performing assets, which include non-accruing loans, accruing loans 90 days or more past due and foreclosed assets at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, (Dollars in thousands) ​ 2024 ​ 2023 Non-accruing loans ​ ​ ​ ​ ​ One- to four-family residential ​ $ 1,530 ​ $ 1,875 ​ Commercial real estate ​ - ​ ​ 50 ​ Construction and land ​ 37 ​ ​ 42 ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ ​ - ​ ​ - ​ Consumer ​ - ​ ​ - ​ Total non-accruing loans ​ ​ 1,567 ​ ​ 1,967 ​ Accruing loans 90 days or more past due ​ ​ ​ ​ One- to four-family residential ​ 64 ​ ​ 24 ​ Commercial real estate ​ - ​ ​ - ​ Construction and land ​ - ​ ​ - ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ ​ - ​ ​ - ​ Consumer ​ - ​ ​ - ​ Total accruing loans 90 days or more past due ​ ​ 64 ​ ​ 24 ​ Total non-performing loans ​ ​ 1,631 ​ ​ 1,991 ​ Foreclosed assets ​ ​ 194 ​ ​ 60 ​ Total non-performing assets ​ $ 1,825 ​ $ 2,051 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans ​ $ 167,076 ​ $ 144,920 ​ Total assets ​ ​ 276,697 ​ ​ 270,932 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total non-accruing loans as a percentage of total loans ​ ​ 0.94 % ​ ​ 1.36 % Total non-performing loans as a percentage of total loans ​ ​ 0.98 ​ ​ ​ 1.37 ​ Total non-performing loans as a percentage of total assets ​ ​ 0.59 ​ ​ ​ 0.73 ​ Total non-performing assets as a percentage of total assets ​ ​ 0.66 ​ ​ ​ 0.76 ​ ​ ​ The following table shows how our allowance for loan losses is allocated by type of loan at each of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 ​ 2023 (Dollars in thousands) Amount of Allowance Percent of Allowance to Total Allowance ​ Percent of Loans in Category to Total Loans ​ Amount of Allowance Percent of Allowance to Total Allowance ​ Percent of Loans in Category to Total Loans One-to four-family residential ​ $ 1,164 ​ 46.2 % ​ 48.5 % ​ $ 1,240 ​ 58.4 % ​ 57.7 % Commercial real estate ​ 192 7.6 ​ ​ 13.2 ​ ​ 213 10.0 ​ 14.8 ​ Construction and land ​ 528 20.9 ​ ​ 19.7 ​ ​ 283 13.3 ​ 9.6 ​ Multi-family residential ​ 35 1.4 ​ ​ 1.5 ​ ​ 50 2.4 ​ 2.3 ​ Commercial and industrial ​ 372 14.8 ​ ​ 15.8 ​ ​ 302 14.2 ​ 13.8 ​ Consumer ​ 26 1.0 ​ ​ 1.3 ​ ​ 36 1.7 ​ 1.8 ​ Unallocated ​ ​ 205 ​ 8.1 ​ ​ - ​ ​ ​ - ​ - ​ ​ - ​ Total ​ $ 2,522 ​ 100.0 % ​ 100.0 % ​ $ 2,124 ​ 100.0 % ​ 100.0 % ​ 36 Table of Contents Investment Securities .
The most significant uses and sources of cash flows during the year ended December 31, 2023 included: $11.4 million in outflows due to the net increase in loans, $11.0 million in proceeds from maturities, paydowns, and sales of investment securities, $10.0 million in proceeds from BTFP advances, and $6.3 million in outflows for the repurchase of the Company’s common stock.
The most significant uses and sources of cash flows during the year ended December 31, 2024 included: ● $48.7 million in proceeds from maturities, paydowns, and sales of investment securities, ● $22.7 million net outflow due to an increase in total loans, ● $20.1 million net inflow due to an increase in deposits ● $10.0 million net outflow due to the repayment of BTFP advances, ● $7.9 million in outflows due to purchases of available-for-sale investment securities ● $5.8 million in outflows for the repurchase of the Company’s common stock.
The allowance approach allows estimated expected credit losses to be adjusted from period-to-period, as opposed to a permanent write-down. ​ For reporting periods on or after January 1, 2023 and the adoption of ASC 326, management evaluates available-for-sale securities in unrealized loss positions to determine if the decline in the fair value of each security below its amortized cost basis is due to credit-related factors or noncredit-related factors.
Under ASC 326, expected credit related losses for available-for-sale debt securities are recorded through an allowance for credit losses, while non-credit related losses will continue to be recognized through other comprehensive income as unrealized holding gains and losses, net of tax. ​ For reporting periods on or after January 1, 2023 and the adoption of ASC 326, management evaluates available-for-sale securities in unrealized loss positions to determine if the decline in the fair value of each security below its amortized cost basis is due to credit-related factors or noncredit-related factors.
In addition, we will continue to enhance our staff capacity through training and hiring of new employees as needed to facilitate our growth. ● Recruiting and retaining top talent and personnel .
The core system conversion brings new and enhanced technology tools and online services preferred by many of our existing and prospective customers. In addition, we will continue to enhance our staff capacity through training and hiring of new employees as needed to facilitate our growth. ● Recruiting and retaining top talent and personnel .
The fair market values of investment securities are obtained from a third party service provider, whose prices are based on a combination of observed market prices for identical or similar instruments and various matrix pricing programs. The fair market values of investment securities are classified within Level 2 of the fair value hierarchy.
Available-for-sale securities are reported at fair value and unrealized holding gains and losses, net of tax, on available-for-sale securities are included in other comprehensive income. The fair market values of investment securities are obtained from a third-party service provider, whose prices are based on a combination of observed market prices for identical or similar instruments and various matrix pricing programs.
Government and agency obligations ​ ​ 7,999 ​ 8.6 ​ ​ ​ 7,388 ​ 10,979 ​ 10.5 ​ ​ 9,917 Municipal obligations ​ ​ 5,998 ​ 6.4 ​ ​ 5,640 ​ 6,065 ​ 5.8 ​ ​ ​ 5,518 Total securities available-for-sale ​ ​ 79,701 ​ 85.5 ​ ​ 70,540 ​ 91,088 ​ 87.1 ​ ​ ​ 79,602 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities held-to-maturity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S.
Government and agency obligations ​ ​ - ​ - ​ ​ ​ - ​ 7,999 ​ 8.6 ​ ​ 7,388 Municipal obligations ​ ​ 1,704 ​ 3.7 ​ ​ 1,510 ​ 5,998 ​ 6.4 ​ ​ ​ 5,640 Total securities available-for-sale ​ ​ 33,215 ​ 71.2 ​ ​ 28,712 ​ 79,701 ​ 85.5 ​ ​ ​ 70,540 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities held-to-maturity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S.
Unrealized losses on available-for-sale securities relate principally to increases in market interest rates for similar securities. Our investment securities portfolio consists primarily of debt obligations issued by the U.S. government and government agencies and government-sponsored mortgage-backed securities. During 2023, investment security maturities, calls and principal repayments totaled $9.1 million.
Unrealized losses on available-for-sale securities relate principally to increases in market interest rates for similar securities. Our investment securities portfolio consists primarily of debt obligations issued by the U.S. government and government agencies and government-sponsored mortgage-backed securities. During the three months ended March 31, 2024, the Company sold 50 available-for-sale investment securities for a total pre-tax loss of $5.5 million.
At December 31, 2023, the allowance for loan losses totaled $2.1 million, or 1.47% of total loans, and the allowance for credit losses on unfunded commitments totaled $257,000, up $41,000 from the date of adoption of ASC 326.
At December 31, 2024, the allowance for loan losses totaled $2.5 million, or 1.51% of total loans, compared to 1.47% of total loans at December 31, 2023. The allowance for credit losses on unfunded commitments totaled $121,000, down $136,000 from December 31, 2023.
The increase in the allowance for loan losses from December 31, 2022 largely reflects the addition of forecasted credit losses due to the adoption ASC 326 and the impact of loan growth in 2023.
The increase in the allowance for loan losses from December 31, 2023 largely reflects the impact of loan growth in 2024.
Net Interest Income. Net interest income was $7.8 million for the year ended December 31, 2023, up $470,000, or 6.4%, compared to 2022. Our interest rate spread was 2.56% for the years ended December 31, 2023 and 2022, respectively. Our net interest margin was 3.10% and 2.75% for the years ended December 31, 2023 and 2022, respectively.
Net interest income was $9.5 million for the year ended December 31, 2024, up $1.8 million, or 23.9%, compared to 2023. Our interest rate spread was 2.76% and 2.50% for the years ended December 31, 2024 and 2023, respectively. Our net interest margin was 3.65% and 3.06% for the years ended December 31, 2024 and 2023, respectively.
Government and agency obligations ​ 0.92 ​ ​ 1.13 ​ ​ 1.26 ​ ​ 2.37 ​ ​ 1.41 ​ Municipal obligations ​ 0.80 ​ ​ 1.10 ​ ​ 2.86 ​ ​ 1.41 ​ ​ 1.86 ​ Total weighted average yield ​ 0.87 ​ ​ 1.82 ​ ​ 1.64 ​ ​ 1.70 ​ ​ 1.69 ​ ​ ​ 36 Table of Contents Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments, or call options.
Government and agency obligations ​ - ​ ​ 1.00 ​ ​ 1.47 ​ ​ 2.42 ​ ​ 1.61 ​ Municipal obligations ​ - ​ ​ 3.33 ​ ​ - ​ ​ 1.41 ​ ​ 2.37 ​ Total weighted average yield ​ - ​ ​ 3.56 ​ ​ 1.63 ​ ​ 2.17 ​ ​ 2.32 ​ ​ ​ 37 Table of Contents Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments, or call options.
Interest income on other interest-earning assets, consisting primarily of interest-earning cash and deposits at other financial institutions, increased due to the impact of higher average short-term interest rates during 2023 compared to 2022. ​ 41 Table of Contents Interest Expense.
The increase in interest income on other interest-earning assets, consisting primarily of interest-earning cash and deposits at other financial institutions, was mainly due to the re-investment of proceeds from investment securities sales discussed previously, as well as the impact of higher average short-term interest rates during 2024 compared to 2023. Interest Expense.
For the year ended December 31, 2023, the Company reported net income of $602,000, compared to $180,000 for the year ended December 31, 2022. Net interest income was up $470,000, or 6.4%, in 2023 compared to 2022. The provision for credit losses totaled $128,000 in 2023, compared to a reversal of loan losses of $375,000 for 2022.
For the year ended December 31, 2024, the Company reported a net loss of $3.1 million, compared to net income of $526,000 for the year ended December 31, 2023. Net interest income for 2024 was up $1.8 million, or 23.9%, compared to 2023. The provision for credit losses totaled $531,000 in 2024, compared to $128,000 in 2023.
At December 31, 2023, the Company had common shares outstanding of 4,761,326 and 228,326 of those shares were available for repurchase under the November 2023 Repurchase Plan. 39 Table of Contents Average Balances, Net Interest Income, and Yields Earned and Rates Paid.
At December 31, 2024, the Company had common shares outstanding of 4,278,150. 40 Table of Contents Average Balances, Net Interest Income, and Yields Earned and Rates Paid.
Total borrowings at December 31, 2023 were $19.4 million, up $10.2 million from December 31, 2022. During the fourth quarter of 2023, the Bank began borrowing from the Federal Reserve Bank of Atlanta through its Bank Term Funding Program (“BTFP”).
Total borrowings at December 31, 2024 were $9.6 million, down $9.8 million, or 50.7%, from December 31, 2023. During the fourth quarter of 2023, the Bank began borrowing from the Federal Reserve Bank of Atlanta through its Bank Term Funding Program (“BTFP”), and at December 31, 2023, the Bank had one $10.0 million BTFP loan outstanding.
At December 31, 2023, approximately 56% of our total loans have adjustable rates and approximately 49% of total loans are scheduled to re-price or mature during the next 12 months. The increase in interest income on investment securities was due to an increase in the average rate earned on our investment securities portfolio.
At December 31, 2024, approximately 50% of our total loans have adjustable rates and approximately 50% of total loans are scheduled to re-price or mature during the next 12 months.
The following is an overview of financial results for the year ended December 31, 2023, compared to December 31, 2022: ● Total assets of $270.9 million at December 31, 2023, up $7.6 million or 2.9% ● Loans of $144.9 million, or 53.5% of total assets, at December 31, 2023, up $11.3 million or 8.5% ● Non-performing assets of $2.1 million at December 31, 2023, up $46,000 or 2.3% ● Investment securities of $84.0 million, or 31.0% of total assets, at December 31, 2023, down $9.1 million or 9.8% ● Deposits of $165.6 million at December 31, 2023, up $528,000 or less than 1.0% ● Borrowings of $19.4 million at December 31, 2023, up $10.2 million or 110.7% ● Total shareholders’ equity of $84.7 million, or 31.2% of total assets, at December 31, 2023, down $3.9 million or 4.4% ● Net interest income increased $470,000, or 6.4%, to $7.8 million and net interest margin increased 35 basis points (“bps”) to 3.10% ● Non-interest expense decreased $141,000, or 1.6%, to $8.6 million. ● Net income increased $422,000 to $602,000 ​ ​ 26 Table of Contents Our results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on our loan and investment portfolios and interest expense on deposits and borrowings.
The following is an overview of financial results for the year ended December 31, 2024, compared to December 31, 2023: ● Total assets of $276.7 million at December 31, 2024, up $5.8 million or 2.1% ● Loans of $167.1 million, or 60.4% of total assets, at December 31, 2024, up $22.2 million or 15.3% ● Non-performing assets of $1.8 million at December 31, 2024, down $226,000 or 11.0% ● Investment securities of $42.2 million, or 15.2% of total assets, at December 31, 2024, down $41.8 million or 49.8% ● Deposits of $185.7 million at December 31, 2024, up $20.1 million or 12.1% ● Borrowings of $9.6 million at December 31, 2024, down $9.8 million or 50.7% ● Total shareholders’ equity of $80.2 million, or 29.0% of total assets, at December 31, 2024, down $4.4 million or 5.2% ● Net interest income increased $1.8 million, or 23.9%, to $9.5 million and net interest margin increased 59 basis points (“bps”) to 3.65% ● Provision for credit losses of $531,000 for 2024, compared to $128,000 for 2023 ● Loss on the sales of investment securities of $5.5 million for 2024, compared to a loss of $92,000 for 2023 ● Non-interest expense of $9.2 million for the year ended December 31, 2024, an increase of $578,000, or 6.7%, compared to 2023, primarily due to expenses related to the Company’s upgrade to a new core processing system ● A net loss of $3.1 million for 2024, compared to net income of $526,000 for 2023 ​ 26 Table of Contents Our results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on our loan and investment portfolios and interest expense on deposits and borrowings.
The full amount of our public fund deposits in excess of the FDIC’s insurance limit are secured by pledging investment securities. ​ ​ 37 Table of Contents The following table shows the average balance of each type of deposit and the average rate paid on each type of interest-bearing deposit for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2023 ​ 2022 (Dollars in thousands) Average Balance Interest Expense Average Rate Paid ​ Average Balance Interest Expense Average Rate Paid Interest-bearing demand deposits ​ $ 40,474 ​ $ 144 0.36 % ​ $ 40,231 ​ $ 46 0.11 % Money market ​ 16,616 ​ 196 1.18 ​ ​ 18,588 ​ 32 0.17 ​ Savings accounts ​ ​ 27,996 ​ ​ 222 ​ 0.79 ​ ​ ​ 27,060 ​ ​ 36 ​ 0.13 ​ Certificates of deposit ​ 51,235 ​ 979 1.91 ​ ​ 61,387 ​ 288 0.47 ​ Total interest-bearing deposits ​ $ 136,321 ​ $ 1,541 1.13 ​ ​ $ 147,266 ​ $ 402 0.27 ​ Non-interest-bearing demand deposits ​ ​ 34,356 ​ ​ - ​ ​ ​ ​ ​ 32,560 ​ ​ - ​ ​ ​ Total deposits ​ $ 170,677 ​ $ 1,541 ​ ​ ​ $ 179,826 ​ $ 402 ​ ​ ​ ​ The following table shows the maturities and weighted average contractual interest rates of our total certificates of deposit at December 31, 2023 by time remaining to maturity. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ Amount ​ Weighted Average Rate Balance at December 31, 2023 maturing in: ​ ​ ​ ​ ​ Three months or less ​ $ 13,949 2.59 % Over three months through six months ​ 16,372 3.22 ​ Over six through 12 months ​ 15,146 3.14 ​ Over 12 months ​ 8,461 1.86 ​ Total certificates of deposit ​ $ 53,928 2.82 ​ ​ ​ The following table shows the maturities and weighted average contractual interest rates of our certificates of deposit in excess of the FDIC insurance limit (generally, $250,000) at December 31, 2023 by time remaining to maturity. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) Amount ​ Weighted Average Rate Balance at December 31, 2023 maturing in: ​ ​ ​ ​ ​ Three months or less ​ $ 1,654 3.12 % Over three months through six months ​ 5,258 4.07 ​ Over six through 12 months ​ 2,707 3.50 ​ Over 12 months ​ 1,616 2.76 ​ Total certificates of deposit with balances in excess of $250,000 ​ $ 11,235 3.61 ​ ​ ​ Borrowings .
At December 31, 2024, the full amount of our public fund deposits in excess of the FDIC’s insurance limit were secured by either pledged investment securities of $15.1 million or $25.0 million of a custodial letter of credit granted by the Federal Home Loan Bank of Dallas. ​ 38 Table of Contents The following table shows the average balance of each type of deposit and the average rate paid on each type of interest-bearing deposit for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2024 ​ 2023 (Dollars in thousands) Average Balance Interest Expense Average Rate Paid ​ Average Balance Interest Expense Average Rate Paid Interest-bearing demand deposits ​ $ 37,242 ​ $ 287 0.77 % ​ $ 40,474 ​ $ 240 0.59 % Money market ​ 13,467 ​ 266 1.98 ​ ​ 16,616 ​ 196 1.18 ​ Savings accounts ​ ​ 36,043 ​ ​ 881 ​ 2.44 ​ ​ ​ 27,996 ​ ​ 222 ​ 0.79 ​ Certificates of deposit ​ 56,498 ​ 1,795 3.18 ​ ​ 51,235 ​ 979 1.91 ​ Total interest-bearing deposits ​ $ 143,250 ​ $ 3,229 2.25 ​ ​ $ 136,321 ​ $ 1,637 1.20 ​ Non-interest-bearing demand deposits ​ ​ 28,842 ​ ​ - ​ ​ ​ ​ ​ 34,356 ​ ​ - ​ ​ ​ Total deposits ​ $ 172,092 ​ $ 3,229 ​ ​ ​ $ 170,677 ​ $ 1,637 ​ ​ ​ ​ The following table shows the maturities and weighted average contractual interest rates of our total certificates of deposit at December 31, 2024 by time remaining to maturity. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ Amount ​ Weighted Average Rate Balance at December 31, 2024 maturing in: ​ ​ ​ ​ ​ Three months or less ​ $ 21,836 3.80 % Over three months through six months ​ 18,274 3.16 ​ Over six through 12 months ​ 14,073 3.06 ​ Over 12 months ​ 6,508 1.88 ​ Total certificates of deposit ​ $ 60,691 3.23 ​ ​ ​ The following table shows the maturities and weighted average contractual interest rates of our certificates of deposit in excess of the FDIC insurance limit (generally, $250,000) at December 31, 2024 by time remaining to maturity. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) Amount ​ Weighted Average Rate Balance at December 31, 2024 maturing in: ​ ​ ​ ​ ​ Three months or less ​ $ 5,260 4.51 % Over three months through six months ​ 7,723 3.05 ​ Over six through 12 months ​ 3,121 3.21 ​ Over 12 months ​ 1,199 2.43 ​ Total certificates of deposit with balances in excess of $250,000 ​ $ 17,303 3.48 ​ ​ ​ Borrowings .
All average balances are based on daily balances. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2023 ​ 2022 (Dollars in thousands) ​ Average Balance ​ Interest ​ Average Yield/Rate ​ Average Balance ​ Interest ​ Average Yield/Rate Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans receivable (1) ​ $ 135,713 ​ $ 7,238 5.33 % ​ $ 132,503 ​ $ 6,127 4.62 % Investment securities (TE)(2) ​ 100,323 ​ 1,643 1.66 ​ ​ 104,421 ​ 1,480 1.43 ​ Other interest-earning assets ​ 16,580 ​ 780 4.70 ​ ​ 30,376 ​ 407 1.34 ​ Total interest-earning assets (TE) ​ 252,616 ​ 9,661 3.83 ​ ​ 267,300 ​ 8,014 3.00 ​ Non-interest-earning assets ​ 14,077 ​ ​ ​ ​ ​ ​ ​ 15,631 ​ ​ ​ ​ ​ ​ Total assets ​ $ 266,693 ​ ​ ​ ​ ​ ​ ​ $ 282,931 ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Demand deposits, money market and savings accounts ​ 85,086 ​ 562 0.66 % ​ 85,879 ​ 114 0.13 % Certificates of deposit ​ 51,235 ​ 979 1.91 ​ ​ 61,387 ​ 288 0.47 ​ Total interest-bearing deposits ​ 136,321 ​ 1,541 1.13 ​ ​ 147,266 ​ 402 0.27 ​ Borrowings ​ 10,208 ​ 319 3.12 ​ ​ 9,294 ​ 281 3.02 ​ Total interest-bearing liabilities ​ 146,529 ​ 1,860 1.27 ​ ​ 156,560 ​ 683 0.44 ​ Non-interest-bearing liabilities ​ 35,387 ​ ​ ​ ​ ​ ​ ​ 33,260 ​ ​ ​ ​ ​ ​ Total liabilities ​ 181,916 ​ ​ ​ ​ ​ ​ ​ 189,820 ​ ​ ​ ​ ​ ​ Shareholders' equity ​ 84,777 ​ ​ ​ ​ ​ ​ ​ 93,111 ​ ​ ​ ​ ​ ​ Total liabilities and shareholders' equity ​ $ 266,693 ​ ​ ​ ​ ​ ​ ​ $ 282,931 ​ ​ ​ ​ ​ ​ Net interest-earning assets ​ $ 106,087 ​ ​ ​ ​ ​ ​ ​ $ 110,740 ​ ​ ​ ​ ​ ​ Net interest income; average interest rate spread (TE) ​ ​ ​ ​ $ 7,801 2.56 % ​ ​ ​ ​ $ 7,331 2.56 % Net interest margin (TE)(3) ​ ​ ​ ​ ​ ​ 3.10 ​ ​ ​ ​ ​ ​ ​ 2.75 ​ Average interest-earning assets to average interest-bearing liabilities ​ ​ ​ ​ ​ ​ 172.40 ​ ​ ​ ​ ​ ​ ​ 170.73 ​ (1) Includes non-accrual loans during the respective periods.
All average balances are based on daily balances. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2024 ​ 2023 (Dollars in thousands) ​ Average Balance ​ Interest ​ Average Yield/Rate (TE) ​ Average Balance ​ Interest ​ Average Yield/Rate (TE) Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans receivable (1) ​ $ 155,867 ​ $ 10,128 6.50 % ​ $ 135,713 ​ $ 7,238 5.33 % Investment securities (2) ​ 54,235 ​ 1,063 1.97 ​ ​ 100,323 ​ 1,643 1.66 ​ Other interest-earning assets ​ 51,552 ​ 2,671 5.18 ​ ​ 16,580 ​ 780 4.70 ​ Total interest-earning assets ​ 261,654 ​ 13,862 5.30 ​ ​ 252,616 ​ 9,661 3.83 ​ Non-interest-earning assets ​ 20,163 ​ ​ ​ ​ ​ ​ ​ 14,077 ​ ​ ​ ​ ​ ​ Total assets ​ $ 281,817 ​ ​ ​ ​ ​ ​ ​ $ 266,693 ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Demand deposits, money market and savings accounts ​ 86,752 ​ 1,434 1.65 % ​ 85,086 ​ 658 0.77 % Certificates of deposit ​ 56,498 ​ 1,795 3.18 ​ ​ 51,235 ​ 979 1.91 ​ Total interest-bearing deposits ​ 143,250 ​ 3,229 2.25 ​ ​ 136,321 ​ 1,637 1.20 ​ Borrowings ​ 26,393 ​ 1,088 4.12 ​ ​ 10,208 ​ 319 3.12 ​ Total interest-bearing liabilities ​ 169,643 ​ 4,317 2.54 ​ ​ 146,529 ​ 1,956 1.33 ​ Non-interest-bearing liabilities ​ 30,694 ​ ​ ​ ​ ​ ​ ​ 35,387 ​ ​ ​ ​ ​ ​ Total liabilities ​ 200,337 ​ ​ ​ ​ ​ ​ ​ 181,916 ​ ​ ​ ​ ​ ​ Shareholders' equity ​ 81,480 ​ ​ ​ ​ ​ ​ ​ 84,777 ​ ​ ​ ​ ​ ​ Total liabilities and shareholders' equity ​ $ 281,817 ​ ​ ​ ​ ​ ​ ​ $ 266,693 ​ ​ ​ ​ ​ ​ Net interest-earning assets ​ $ 92,011 ​ ​ ​ ​ ​ ​ ​ $ 106,087 ​ ​ ​ ​ ​ ​ Net interest income; average interest rate spread ​ ​ ​ ​ $ 9,545 2.76 % ​ ​ ​ ​ $ 7,705 2.50 % Net interest margin (3) ​ ​ ​ ​ ​ ​ 3.65 ​ ​ ​ ​ ​ ​ ​ 3.06 ​ Average interest-earning assets to average interest-bearing liabilities ​ ​ ​ ​ ​ ​ 154.24 ​ ​ ​ ​ ​ ​ ​ 172.40 ​ (1) Includes non-accrual loans during the respective periods.
In January 2024, the Company initiated a strategy involving the sale of a substantial portion of its available-for-sale investment securities. The Company expects to deploy the net sales proceeds into a mix of cash and higher-yielding earning assets to improve net interest income and our exposure to interest rate risk.
The Company deployed the net sales proceeds into a mix of cash and higher-yielding earning assets to improve net interest income and our exposure to interest rate risk. Economic Value of Equity.
Total interest expense increased $1.2 million, or 172.3%, to $1.9 million for the year ended December 31, 2023, compared to $683,000 for 2022. Interest expense on deposits was $1.5 million during 2023, up $1.1 million, or 283.3%, from $402,000 for 2022. The average rate paid on interest-bearing deposits was 1.13% during 2023, up 86 basis points from 0.27% during 2022.
Total interest expense increased $2.4 million, or 120.7%, to $4.3 million for the year ended December 31, 2024, compared to $2.0 million for 2023. Interest expense on deposits was $3.2 million during 2024, up $1.6 million, or 97.3%, from $1.6 million for 2023.
The following table presents total deposits by account type as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ ​ ​ ​ ​ ​ (Dollars in thousands) Amount % Amount % ​ Change Non-interest-bearing demand deposits ​ $ 28,183 17.0 % ​ $ 33,657 20.4 % ​ $ (5,474) ​ (16.3) % Interest-bearing demand deposits ​ 36,867 22.3 ​ ​ 36,991 22.4 ​ ​ (124) ​ (0.3) ​ Money market ​ 15,126 9.1 ​ ​ 15,734 9.5 ​ ​ (608) ​ (3.9) ​ Savings ​ 31,518 19.0 ​ ​ 26,209 15.9 ​ ​ 5,309 ​ 20.3 ​ Certificates of deposit ​ ​ 53,928 32.6 ​ ​ ​ 52,503 31.8 ​ ​ ​ 1,425 ​ 2.7 ​ Total deposits ​ $ 165,622 100.0 % ​ $ 165,094 100.0 % ​ $ 528 ​ 0.3 ​ ​ The increases in savings and certificates of deposits were largely driven by rate specials offered to depositors during 2023.
The following table presents total deposits by account type as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ ​ (Dollars in thousands) Amount % Amount % ​ Change Non-interest-bearing demand deposits ​ $ 28,281 15.2 % ​ $ 28,183 17.0 % ​ $ 98 ​ 0.3 % Interest-bearing demand deposits ​ 48,334 26.0 ​ ​ 36,867 22.3 ​ ​ 11,467 ​ 31.1 ​ Money market ​ 10,729 5.8 ​ ​ 15,126 9.1 ​ ​ (4,397) ​ (29.1) ​ Savings ​ 37,639 20.3 ​ ​ 31,518 19.0 ​ ​ 6,121 ​ 19.4 ​ Certificates of deposit ​ ​ 60,691 32.7 ​ ​ ​ 53,928 32.6 ​ ​ ​ 6,763 ​ 12.5 ​ Total deposits ​ $ 185,674 100.0 % ​ $ 165,622 100.0 % ​ $ 20,052 ​ 12.1 ​ ​ ​ The ratio of the Company’s total loans to deposits was 90.0% and 87.5% as of December 31, 2024 and 2023, respectively. ​ The increase in interest-bearing demand deposits was largely due to a seasonal increase in public funds.
The allowance for credit losses is established through a provision for credit losses charged to earnings. Loans, or portions of loans, are charged off against the allowance in the period that such loans, or portions thereof, are deemed uncollectible. Subsequent recoveries are added to the allowance.
Loans, or portions of loans, are charged off against the allowance in the period that such loans, or portions thereof, are deemed uncollectible. Subsequent recoveries are added to the allowance. The allowance for loan losses totaled $2.5 million, or 1.51% of total loans, at December 31, 2024 and $2.1 million, or 1.47% of total loans, at December 31, 2023.
The Company also had a $20.0 million custodial letter of credit outstanding from the FHLB as of December 31, 2023, which is included in the calculation of our available capacity with the FHLB.
For more detail on loans pledged to the FHLB, refer to Note 4 of the financial statements included in Item 8 of this Form 10-K. The Company also has a $25.0 million custodial letter of credit outstanding from the FHLB as of December 31, 2024, which is included in the calculation of our available capacity with the FHLB.
Refer to Note 1 of the consolidated financial statements included in Item 8 of this Form 10-K for more information on the adoption of ASC 326. The allowance for credit losses includes the allowance for loan losses and the allowance for credit losses on unfunded lending commitments, which is recorded in other liabilities on the statement of financial condition.
The allowance for credit losses includes the allowance for loan losses and the allowance for credit losses on unfunded lending commitments, which is recorded in other liabilities on the statement of financial condition. The allowance for credit losses is established through a provision for credit losses charged to earnings.
The total provision for credit losses on loans and unfunded commitments was $128,000 for the year ended December 31, 2023, compared to a reversal of $375,000 in 2022. In 2023, the provision for credit losses was largely attributable to loan growth that necessitated additional loan provisions according to the Bank’s current expected credit losses model.
The total provision for credit losses on loans and unfunded commitments was $531,000 for the year ended December 31, 2024, compared to $128,000 in 2023. In 2024, the provision for credit losses was largely attributable to commercial loan growth and an increase in the allowance for credit losses on individually evaluated loans. ​ 43 Table of Contents Non-interest Income .
Advertising and marketing expense for the year ended December 31, 2022 included rebranding-related expenses of $124,000. Income Tax Expense. The Company reported income tax expense of $81,000 for the year ended December 31, 2023 and an income tax benefit of $21,000 for the year ended December 31, 2022.
The Company reported an income tax benefit of $894,000 for the year ended December 31, 2024, compared to income tax expense of $61,000 for the year ended December 31, 2023.
The table below summarizes our unused and available liquidity sources as of December 31, 2023. ​ ​ ​ ​ (Dollars in thousands) ​ 12/31/2023 Advances from the Federal Home Loan Bank of Dallas ​ $ 48,467 Line of credit with primary correspondent bank ​ ​ 17,800 Federal Reserve's Bank Term Funding Program ​ ​ 1,434 Federal Reserve Discount Window ​ ​ 718 Unpledged available-for-sale investment securities, at fair value ​ ​ 25,385 Total unused and available liquidity ​ $ 93,804 ​ ​ Pledged securities under the BTFP are valued at par when determining borrowing capacity.
The table below summarizes our unused and available liquidity sources as of December 31, 2024. ​ ​ ​ ​ (Dollars in thousands) ​ 12/31/2024 Advances from the Federal Home Loan Bank of Dallas ​ $ 45,719 Line of credit with primary correspondent bank ​ ​ 17,800 Unpledged available-for-sale investment securities, at fair value ​ ​ 19,088 Total unused and available liquidity ​ $ 82,607 ​ ​ The Bank’s available borrowing capacity with the FHLB is secured though a blanket floating lien on real estate loans.
We also anticipate continued use of our secondary funding sources. ​ 45 Table of Contents The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and undisbursed construction loans at December 31, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Commitment Expiration — Per Period (Dollars in thousands) ​ Total Amounts Committed at December 31, 2023 ​ To 1 Year ​ 1 - 3 Years ​ 3 - 5 Years ​ After 5 Years Commitments to originate loans ​ $ 141 ​ $ 141 ​ $ - ​ $ - ​ $ - Undisbursed portion of construction loans in process ​ 12,914 ​ 9,320 ​ 3,594 ​ - ​ - Unused lines of credit ​ 18,093 ​ 15,608 ​ 1,636 ​ - ​ 849 Unused overdraft privilege amounts ​ 1,142 ​ - ​ - ​ - ​ 1,142 Letters of credit ​ ​ 2 ​ ​ 2 ​ ​ - ​ ​ - ​ ​ - Total commitments ​ $ 32,292 ​ $ 25,071 ​ $ 5,230 ​ $ - ​ $ 1,991 ​ ​ The following table summarizes our contractual cash obligations at December 31, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments Due By Period (Dollars in thousands) ​ Total at December 31, 2023 ​ To 1 Year ​ 1 - 3 Years ​ 3 - 5 Years ​ After 5 Years Certificates of deposit ​ $ 53,928 ​ $ 45,467 ​ $ 7,842 ​ $ 619 ​ $ - Borrowings ​ 20,000 ​ 10,000 ​ 3,000 ​ 7,000 ​ - Total term debt ​ $ 73,928 ​ $ 55,467 ​ $ 10,842 ​ $ 7,619 ​ $ - ​ ​ The Bank exceeded all regulatory capital requirements and was categorized as well-capitalized at December 31, 2023 and December 31, 2022.
We also anticipate continued use of our secondary funding sources. 46 Table of Contents The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and undisbursed construction loans at December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Commitment Expiration — Per Period (Dollars in thousands) ​ Total Amounts Committed at December 31, 2024 ​ To 1 Year ​ 1 - 3 Years ​ 3 - 5 Years ​ After 5 Years Commitments to originate loans ​ $ 11,979 ​ $ 11,979 ​ $ - ​ $ - ​ $ - Undisbursed portion of construction loans in process ​ 7,635 ​ 4,654 ​ 2,981 ​ - ​ - Unused lines of credit ​ 15,391 ​ 12,115 ​ 2,164 ​ - ​ 1,112 Unused overdraft privilege amounts ​ 1,167 ​ - ​ - ​ - ​ 1,167 Letters of credit ​ ​ 19 ​ ​ 19 ​ ​ - ​ ​ - ​ ​ - Total commitments ​ $ 36,191 ​ $ 28,767 ​ $ 5,145 ​ $ - ​ $ 2,279 ​ ​ The following table summarizes our contractual cash obligations at December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments Due By Period (Dollars in thousands) ​ Total at December 31, 2024 ​ To 1 Year ​ 1 - 3 Years ​ 3 - 5 Years ​ After 5 Years Certificates of deposit ​ $ 60,691 ​ $ 54,183 ​ $ 5,935 ​ $ 573 ​ $ - Borrowings ​ 10,000 ​ 3,000 ​ 3,000 ​ 4,000 ​ - Total term debt ​ $ 70,691 ​ $ 57,183 ​ $ 8,935 ​ $ 4,573 ​ $ - ​ ​ Management expects that a majority of the maturing certificates of deposit will be retained.
During the year ended December 31, 2023, the Company repurchased 528,674 shares of its common stock at an average cost per share of $11.94 through the completion of repurchases of 265,000 shares under its January 2023 Repurchase Plan and 252,000 under its April 2023 Repurchase Plan, and the repurchase of another 11,674 shares pursuant to a third repurchase plan announced in November (the “November 2023 Repurchase Plan”).
During the year ended December 31, 2024, the Company repurchased 483,176 shares of its common stock at an average cost of $11.91 per share. Of those shares, 228,326 shares were repurchased under the Company’s November 2023 Repurchase Plan and 227,000 shares were repurchased under the May 2024 Repurchase Plan.
Of the $5.5 million decline in non-interest-bearing demand deposits from December 31, 2022 to December 31, 2023, approximately $3.5 million was attributable to two commercial deposit account closures. ​ Our public fund deposits totaled $23.3 million, or 14.1% of total deposits, at December 31, 2023, compared to $21.0 million, or 12.7% of total deposits, at December 31, 2022.
Total public fund deposits totaled $35.6 million, or 19.2% of total deposits, at December 31, 2024, compared to $23.3 million, or 14.1% of total deposits, at December 31, 2023. At December 31, 2024, approximately 83% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits from municipalities within our market, compared to 78% at December 31, 2023.
The combined effect of changes in both rate and volume has been allocated proportionately to the change due to rate and the change due to volume. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, 2023 vs 2022 ​ ​ Increase (Decrease) Due to ​ Total (Dollars in thousands) ​ Rate ​ Volume ​ Increase (Decrease) Interest income: ​ ​ ​ Loans receivable ​ $ 959 ​ $ 152 ​ $ 1,111 Investment securities ​ 222 ​ (59) ​ 163 Other interest-earning assets ​ 630 ​ (257) ​ 373 Total interest income ​ 1,811 ​ (164) ​ 1,647 Interest expense: ​ ​ ​ Demand deposits, money market and savings accounts ​ 449 ​ (1) ​ 448 Certificates of deposit ​ 746 ​ (55) ​ 691 Total deposits ​ 1,195 ​ (56) ​ 1,139 Borrowings ​ 10 ​ 28 ​ 38 Total interest expense ​ 1,205 ​ (28) ​ 1,177 Increase (decrease) in net interest income ​ $ 606 ​ $ (136) ​ $ 470 ​ ​ Comparison of Results of Operation for the Years Ended December 31, 2023 and 2022 General.
The combined effect of changes in both rate and volume has been allocated proportionately to the change due to rate and the change due to volume. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, 2024 vs 2023 ​ ​ Increase (Decrease) Due to ​ Total (Dollars in thousands) ​ Rate ​ Volume ​ Increase (Decrease) Interest income: ​ ​ ​ Loans receivable ​ $ 1,720 ​ $ 1,170 ​ $ 2,890 Investment securities ​ 276 ​ (856) ​ (580) Other interest-earning assets ​ 76 ​ 1,815 ​ 1,891 Total interest income ​ 2,072 ​ 2,129 ​ 4,201 Interest expense: ​ ​ ​ Demand deposits, money market and savings accounts ​ 764 ​ 12 ​ 776 Certificates of deposit ​ 706 ​ 110 ​ 816 Total deposits ​ 1,470 ​ 122 ​ 1,592 Borrowings ​ (6) ​ 775 ​ 769 Total interest expense ​ 1,464 ​ 897 ​ 2,361 Increase (decrease) in net interest income ​ $ 608 ​ $ 1,232 ​ $ 1,840 ​ ​ ​ 42 Table of Contents Comparison of Results of Operation for the Years Ended December 31, 2024 and 2023 General.
Refer to Note 17 of the financial statements included in Item 8 of this Form 10-K for more information. Economic Value of Equity.
Refer to Note 9 of the financial statements included in Item 8 of this Form 10-K for more detail on the Bank’s capital. ​ ​ Recent Accounting Pronouncements For a discussion of the impact of recent accounting pronouncements, see Note 1 of the notes to our financial statements included in Item 8 of this Form 10-K. ​ ​
The increase in net interest margin and net interest income over the comparable periods was primarily the result of increased yields on our interest-earning assets due to significant increases in market interest rates during 2022 and 2023. Rising market rates have also led to an increase in the average cost of our deposits. Provision for Credit Losses.
The increase in net interest margin and net interest income over the comparable periods was primarily the result of an increase in the yield and a change in the mix of our interest-earning assets, partially offset by the impact of an increase in the average volume and average rate paid on interest-bearing liabilities. Provision for Credit Losses.
Salaries and employee benefits expense totaled $4.7 million for the year ended December 31, 2023, down $151,000, or 3.1%, compared to 2022 primarily due to a lower employee count in 2023. These cost savings were partially offset by higher stock compensation expense in 2023.
Stock compensation expense also contributed to the increase in salaries and employee benefits expense due to additional grants under the 2022 stock compensation plans. Data processing and communication expense totaled $1.3 million for the year ended December 31, 2024, up $438,000, or 48.1%, compared to 2023.
The following table shows the composition of our loan portfolio by type of loan at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ December 31, 2022 ​ ​ ​ ​ ​ ​ (Dollars in thousands) Amount % Amount % ​ Change Real estate loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ $ 83,623 57.7 % ​ $ 87,508 65.5 % ​ $ (3,885) ​ (4.4) % Commercial real estate ​ 21,478 14.8 ​ ​ 19,437 14.5 ​ ​ 2,041 ​ 10.5 ​ Construction and land ​ 13,857 9.6 ​ ​ 6,172 4.6 ​ ​ 7,685 ​ 124.5 ​ Multi-family residential ​ 3,373 2.3 ​ ​ 3,200 2.4 ​ ​ 173 ​ 5.4 ​ Total real estate loans ​ ​ 122,331 84.4 ​ ​ ​ 116,317 87.0 ​ ​ ​ 6,014 ​ 5.2 ​ Other loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 19,984 13.8 ​ ​ ​ 13,843 10.4 ​ ​ ​ 6,141 ​ 44.4 ​ Consumer ​ ​ 2,605 1.8 ​ ​ ​ 3,447 2.6 ​ ​ ​ (842) ​ (24.4) ​ Total other loans ​ ​ 22,589 15.6 ​ ​ ​ 17,290 13.0 ​ ​ ​ 5,299 ​ 30.6 ​ Total loans ​ $ 144,920 100.0 % ​ $ 133,607 100.0 % ​ $ 11,313 ​ 8.5 ​ ​ ​ Approximately 60% of our real estate loans have adjustable rates and, of our total real estate loans, approximately $60.7 million, or 50%, are scheduled to re-price or mature during the next 12 months.
The following table summarizes the changes in the composition of our loan portfolio by type of loan as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ ​ (Dollars in thousands) Amount % Amount % ​ Change Real estate loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ $ 81,097 48.5 % ​ $ 83,623 57.7 % ​ $ (2,526) ​ (3.0) % Commercial real estate ​ 22,108 13.2 ​ ​ 21,478 14.8 ​ ​ 630 ​ 2.9 ​ Construction and land ​ 32,941 19.7 ​ ​ 13,857 9.6 ​ ​ 19,084 ​ 137.7 ​ Multi-family residential ​ 2,570 1.5 ​ ​ 3,373 2.3 ​ ​ (803) ​ (23.8) ​ Total real estate loans ​ ​ 138,716 82.9 ​ ​ ​ 122,331 84.4 ​ ​ ​ 16,385 ​ 13.4 ​ Other loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 26,439 15.8 ​ ​ ​ 19,984 13.8 ​ ​ ​ 6,455 ​ 32.3 ​ Consumer ​ ​ 1,921 1.3 ​ ​ ​ 2,605 1.8 ​ ​ ​ (684) ​ (26.3) ​ Total other loans ​ ​ 28,360 17.1 ​ ​ ​ 22,589 15.6 ​ ​ ​ 5,771 ​ 25.5 ​ Total loans ​ $ 167,076 100.0 % ​ $ 144,920 100.0 % ​ $ 22,156 ​ 15.3 % ​ ​ During 2024, loan growth was primarily driven by commercial construction and non-real estate commercial loan growth.
Total assets increased $7.6 million, or 2.9%, to $270.9 million at December 31, 2023 from $263.4 million at December 31, 2022. The increase was primarily due to additional borrowings in 2023 which were used to fund loan growth and invested in interest-bearing cash. Loans .
Total assets increased $5.8 million, or 2.1%, to $276.7 million at December 31, 2024 from $270.9 million at December 31, 2023. The increase was largely due to an increase in cash from deposit growth, which was partially offset by the repayment of outstanding borrowings under the BTFP and repurchases of common stock. Loans .
The Company has not realized or recognized any losses in the statement of income for any investment securities held at December 31, 2023 or 2022. ​ The adoption of ASC 326 amended the guidance applicable to measuring and recognizing losses on available-for-sale securities.
Proceeds from the investment sales totaled $42.6 million, inclusive of accrued interest. ​ The adoption of ASC 326 amended the guidance applicable to measuring and recognizing losses on available-for-sale securities.
The Company has not purchased investment securities since the fourth quarter of 2022. During the fourth quarter of 2023, the Company sold two available-for-sale investment securities for a pre-tax loss of $92,000. Cash proceeds from the sales totaled $1.9 million.
During the first quarter of 2024, the Company executed a strategy involving the sale of a substantial portion of its available-for-sale investment securities. The Company sold 50 available-for-sale investment securities for a pre-tax loss of $5.5 million and collected proceeds from the sales of $42.6 million.
At December 31, 2023, the Bank had one $10.0 million BTFP loan outstanding with a contractual interest rate of 4.83% and a maturity date of December 27, 2024. Other borrowings outstanding at December 31, 2023 consisted of FHLB advances totaling $9.4 million and $9.2 million at December 31, 2023 and 2022, respectively.
The BTFP debt was repaid during 2024 and the Bank had no outstanding borrowings under the program at December 31, 2024. ​ 39 Table of Contents Borrowings outstanding at December 31, 2024 consisted of FHLB advances totaling $9.6 million, compared to $9.4 million at December 31, 2023.
The average loan yield was 5.33% for the year ended December 31, 2023, up from 4.62% for the year ended December 31, 2022. Average loans were $135.7 million for the year ended December 31, 2023, up $3.2 million, or 2.4%, compared to 2022.
These increases were partially offset by a decrease in interest income on investment securities of $580,000 over the same comparable periods. The average loan yield was 6.50% for the year ended December 31, 2024, up from 5.33% for 2023. Average loans were $155.9 million for the year ended December 31, 2024, up $20.2 million, or 14.9%, compared to 2023.
Government and agency obligations ​ 1,000 ​ ​ 7,000 ​ ​ 9,000 ​ ​ 4,002 ​ ​ 21,002 ​ Municipal obligations ​ ​ 700 ​ ​ ​ 1,482 ​ ​ ​ 2,628 ​ ​ ​ 1,646 ​ ​ ​ 6,456 ​ Total ​ $ 1,700 ​ ​ $ 13,010 ​ ​ $ 22,033 ​ ​ $ 56,419 ​ ​ $ 93,162 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average yield ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ - % ​ 3.12 % ​ 1.67 % ​ 1.66 % ​ 1.76 % U.S.
Government and agency obligations ​ - ​ ​ 2,000 ​ ​ 8,000 ​ ​ 3,000 ​ ​ 13,000 ​ Municipal obligations ​ ​ - ​ ​ ​ 1,075 ​ ​ ​ - ​ ​ ​ 1,076 ​ ​ ​ 2,151 ​ Total ​ $ - ​ ​ $ 8,426 ​ ​ $ 8,445 ​ ​ $ 29,791 ​ ​ $ 46,662 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average yield ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ - % ​ 4.56 % ​ 4.55 % ​ 2.17 % ​ 2.61 % U.S.
Non-interest expense totaled $8.6 million for the year ended December 31, 2023, down $141,000, or 1.6%, compared to 2022. Total non-interest expense for year ended December 31, 2022 included $214,000 of rebranding-related expenses.
Non-interest expense totaled $9.2 million for the year ended December 31, 2024, up $578,000, or 6.7%, compared to 2023. Non-interest expense for 2024 included $531,000 of data conversion and other associated expenses related to the Company’s upgrade to a new core processing system, which occurred during the first three months of 2024.
Professional fees associated with obtaining our 2023 and 2022 BEA grants totaled $66,000 and $26,000, respectively. Foreclosed assets expense totaled $72,000 for the year ended December 31, 2023, compared to $5,000 for 2022. The Company realized losses of $66,000 on the sale of real estate held as foreclosed assets during 2023.
Data processing and communication expense for 2024 included $509,000 of data conversion and other associated expenses associated with the Company’s upgrade to a new core processing system. Professional fees totaled $469,00 for the year ended December 31, 2024, down $17,000, or 3.5%, from 2023. Professional fees associated with obtaining our 2024 and 2023 BEA grants totaled $42,000 and $66,000, respectively.
At December 31, 2023, approximately 78% of our total public funds consisted of non-interest-bearing and interest-bearing demand deposits from municipalities within our market. ​ Our total uninsured deposits (that is deposits in excess of the FDIC’s insurance limit), inclusive of public funds, were approximately $44.6 million at December 31, 2023 and $43.4 million at December 31, 2022.
The increase in savings deposits was largely driven by rate specials offered to depositors during 2024, while the increase in certificates of deposit was primarily due to the acquisition of brokered funding during the fourth quarter of 2024. ​ The estimated amount of our total uninsured deposits (that is deposits in excess of the FDIC’s insurance limit), inclusive of public funds, was approximately $53.7 million at December 31, 2024 and $44.6 million at December 31, 2023.
The amounts shown below do not take into account loan prepayments. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts due after December 31, 2023 in (Dollars in thousands) ​ One year or less ​ After one year through five years ​ After five years through 15 years ​ After 15 years ​ Total One- to four-family residential $ 316 $ 5,415 $ 31,716 $ 46,176 $ 83,623 Commercial real estate ​ 1,283 ​ 8,858 ​ 7,074 ​ 4,263 ​ 21,478 Construction and land ​ 11,469 ​ 1,847 ​ 470 ​ 71 ​ 13,857 Multi-family residential ​ 271 ​ 850 ​ 2,252 ​ - ​ 3,373 Commercial and industrial ​ 9,702 ​ 8,612 ​ 1,454 ​ 216 ​ 19,984 Consumer ​ 389 ​ 1,661 ​ 555 ​ - ​ 2,605 Total $ 23,430 $ 27,243 $ 43,521 $ 50,726 $ 144,920 ​ ​ The following table shows the dollar amount of our loans at December 31, 2023, due after December 31, 2024, as shown in the preceding table, which have fixed interest rates or which have floating or adjustable interest rates. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ Fixed-Rate ​ Floating or Adjustable-Rate ​ Total Amounts due after December 31, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential $ 29,572 ​ $ 53,735 ​ $ 83,307 Commercial real estate ​ 9,854 ​ 10,341 ​ 20,195 Construction and land ​ 590 ​ 1,798 ​ 2,388 Multi-family residential ​ 380 ​ 2,722 ​ 3,102 Commercial and industrial ​ 9,624 ​ 658 ​ 10,282 Consumer ​ 1,591 ​ 625 ​ 2,216 Total $ 51,611 ​ $ 69,879 ​ $ 121,490 ​ ​ Allowance for Credit Losses .
The amounts shown below do not take into account loan prepayments. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts due after December 31, 2024 in (Dollars in thousands) ​ One year or less ​ After one year through five years ​ After five years through 15 years ​ After 15 years ​ Total One- to four-family residential $ 609 $ 7,304 $ 31,113 $ 42,071 $ 81,097 Commercial real estate ​ 85 ​ 12,599 ​ 8,270 ​ 1,154 ​ 22,108 Construction and land ​ 23,903 ​ 8,672 ​ 330 ​ 36 ​ 32,941 Multi-family residential ​ - ​ 470 ​ 2,100 ​ - ​ 2,570 Commercial and industrial ​ 6,848 ​ 15,289 ​ 4,267 ​ 35 ​ 26,439 Consumer ​ 268 ​ 1,369 ​ 284 ​ - ​ 1,921 Total $ 31,713 $ 45,703 $ 46,364 $ 43,296 $ 167,076 ​ ​ 33 Table of Contents The following table shows the dollar amount of our loans at December 31, 2024, due after December 31, 2025, as shown in the preceding table, which have fixed interest rates or which have floating or adjustable interest rates. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ Fixed-Rate ​ Floating or Adjustable-Rate ​ Total Amounts due after December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential $ 32,153 ​ $ 48,335 ​ $ 80,488 Commercial real estate ​ 13,656 ​ 8,367 ​ 22,023 Construction and land ​ 1,977 ​ 7,061 ​ 9,038 Multi-family residential ​ - ​ 2,570 ​ 2,570 Commercial and industrial ​ 15,657 ​ 3,934 ​ 19,591 Consumer ​ 1,278 ​ 375 ​ 1,653 Total $ 64,721 ​ $ 70,642 ​ $ 135,363 ​ ​ Allowance for Credit Losses .
Total directors’ fees were $463,000 in 2023, up $161,000 compared to 2022. Data processing and communication expense totaled $911,000 for the year ended December 31, 2023, up $70,000, or 8.3%, compared to 2022 primarily due to annual rate increases by our core system provider and growth in the volume of accounts.
Salaries and employee benefits expense totaled $4.8 million for the year ended December 31, 2024, up $159,000, or 3.4%, compared to 2023. The increase was primarily due to an increase in bonus expense and annual raises during 2024.
Removed
During the first quarter of 2024, the Company is converting to a new core processing system, which will significantly improve our customer-facing and internal banking technology. The core system conversion will bring new and enhanced technology tools and on-line services preferred by many of our existing and prospective customers.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties We currently conduct business from our main office and five full-service banking offices. The aggregate net book value of the land, building and leasehold improvements with respect to our offices at December 31, 2023 was $5.5 million. We owned all of such offices at December 31, 2023; none were leased.
Biggest changeItem 2. Properties We currently conduct business from our main office and five full-service banking offices. The aggregate net book value of the land, building and leasehold improvements with respect to our offices at December 31, 2024 was $5.3 million. We owned all of such offices at December 31, 2024. No offices were leased.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings ​ Catalyst Bancorp and Catalyst Bank, formerly St. Landry Homestead, are not involved in any pending legal proceedings other than nonmaterial legal proceedings occurring in the ordinary course of business. ​ Item 4. Mine Safety Disclosures ​ Not applicable. ​ ​ 24 Table of Contents PART II
Biggest changeItem 3. Legal Proceedings ​ Catalyst Bancorp and Catalyst Bank are not involved in any pending legal proceedings other than nonmaterial legal proceedings occurring in the ordinary course of business. ​ Item 4. Mine Safety Disclosures ​ Not applicable. ​ ​ PART II

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine Safety Disclosures 24 PART II. ​ ​ Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25 Item 6. [Reserved.] 25 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 26
Biggest changeItem 4. Mine Safety Disclosures 24 PART II. ​ ​ Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24 Item 6. [Reserved.] 25 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 26 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 47 Item 8.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeTo date, no dividends have been declared by the Company on its common stock. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Quarter Ended ​ High ​ Low ​ Cash Dividends Declared December 31, 2021 ​ $ 14.09 ​ $ 13.31 ​ $ - March 31, 2022 ​ ​ 14.00 ​ ​ 13.46 ​ ​ - June 30, 2022 ​ ​ 13.88 ​ ​ 12.03 ​ ​ - September 30, 2022 ​ ​ 13.60 ​ ​ 12.20 ​ ​ - December 31, 2022 ​ ​ 13.40 ​ ​ 12.35 ​ ​ - March 31, 2023 ​ ​ 13.10 ​ ​ 11.50 ​ ​ - June 30, 2023 ​ ​ 11.74 ​ ​ 9.26 ​ ​ - September 30, 2023 ​ ​ 12.71 ​ ​ 11.06 ​ ​ - December 31, 2023 ​ ​ 11.85 ​ ​ 10.60 ​ ​ - ​ (b) Not applicable.
Biggest changeTo date, no dividends have been declared by the Company on its common stock. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Quarter Ended ​ High ​ Low ​ Cash Dividends Declared December 31, 2021 ​ $ 14.09 ​ $ 13.31 ​ $ - March 31, 2022 ​ ​ 14.00 ​ ​ 13.46 ​ ​ - June 30, 2022 ​ ​ 13.88 ​ ​ 12.03 ​ ​ - September 30, 2022 ​ ​ 13.60 ​ ​ 12.20 ​ ​ - December 31, 2022 ​ ​ 13.40 ​ ​ 12.35 ​ ​ - March 31, 2023 ​ ​ 13.10 ​ ​ 11.50 ​ ​ - June 30, 2023 ​ ​ 11.74 ​ ​ 9.26 ​ ​ - September 30, 2023 ​ ​ 12.71 ​ ​ 11.06 ​ ​ - December 31, 2023 ​ ​ 11.85 ​ ​ 10.60 ​ ​ - March 31, 2024 ​ ​ 12.10 ​ ​ 10.90 ​ ​ - June 30, 2024 ​ ​ 11.93 ​ ​ 11.26 ​ ​ - September 30, 2024 ​ ​ 12.10 ​ ​ 10.78 ​ ​ - December 31, 2024 ​ ​ 11.95 ​ ​ 11.16 ​ ​ - ​ (b) Not applicable. ​ 24 Table of Contents (c) On May 2, 2024, the Company’s Board of Directors approved the Company’s fourth share repurchase program (the “May 2024 Repurchase Plan”).
As of the close of business on December 31, 2023, there were 4,761,326 shares of common stock outstanding, held by approximately 236 shareholders of record, not including the number of persons or entities whose stock is held in nominee or “street” name through various brokerage firms and banks.
As of the close of business on December 31, 2024, there were 4,278,150 shares of common stock outstanding, held by approximately 226 shareholders of record, not including the number of persons or entities whose stock is held in nominee or “street” name through various brokerage firms and banks.
Under the November 2023 Repurchase Plan, the Company may purchase up to 240,000 shares, or approximately 5%, of the Company's outstanding common stock. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Month Ended ​ Total Number of Shares Purchased ​ Average Price Paid per Share ​ Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs ​ Maximum Number of Shares that May Yet be Purchased Under Plans or Programs October 31, 2023 ​ ​ 12,010 ​ $ 11.43 ​ ​ 12,010 ​ ​ 63,280 November 30, 2023 ​ ​ 63,280 ​ ​ 11.01 ​ ​ 63,280 ​ ​ 240,000 December 31, 2023 ​ ​ 11,674 ​ ​ 11.12 ​ ​ 11,674 ​ ​ 228,326 Total ​ ​ 86,964 ​ $ 11.08 ​ ​ 86,964 ​ ​ ​ ​ At December 31, 2023, the Company had common shares outstanding of 4,761,326 and 228,326 of those shares were available for repurchase under the November 2023 Repurchase Plan.
Under the November 2024 Repurchase Plan, the Company may purchase up to 215,000 shares, or approximately 5%, of the Company's outstanding common stock. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Month Ended ​ Total Number of Shares Purchased ​ Average Price Paid per Share ​ Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs ​ Maximum Number of Shares that May Yet be Purchased Under Plans or Programs October 31, 2024 ​ ​ 51,077 ​ $ 11.49 ​ ​ 51,077 ​ ​ 42,050 November 30, 2024 ​ ​ 34,915 ​ ​ 11.52 ​ ​ 34,915 ​ ​ 222,135 December 31, 2024 ​ ​ 34,985 ​ ​ 11.63 ​ ​ 34,985 ​ ​ 187,150 Total ​ ​ 120,977 ​ $ 11.54 ​ ​ 120,977 ​ ​ ​ ​ Since January 1, 2025 through March 24, 2025, the Company repurchased 71,479 shares of its common stock at an average cost per share of $11.86 under the November 2024 Repurchase Plan. ​ ​
(c) On April 27, 2023, the Company announced the approval of its second repurchase plan (the “April 2023 Repurchase Plan”) under which it purchased 252,000 shares, or approximately 5% of the Company’s outstanding shares of common stock. The Company completed the April 2023 Repurchase Plan in November 2023.
Under the May 2024 Repurchase Plan, the Company purchased 227,000 shares, or approximately 5%, of the Company's outstanding common stock. The Company completed the May 2024 Repurchase Plan in December 2024. On November 25, 2024, the Company’s Board of Directors approved the Company’s fifth share repurchase program (the “November 2024 Repurchase Plan”).
Removed
On November 21, 2023, the Company’s Board of Directors approved the Company’s third share repurchase program (the “November 2023 Repurchase Plan”).
Removed
Since January 1, 2024 through March 22, 2024, the Company repurchased 201,039 shares of its common stock at an average cost per share of $12.12 under the November 2023 Repurchase Plan. ​ ​

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeLandry Homestead Federal Savings Bank (“St. Landry Homestead”). The information in this section has been derived from the audited financial statements, which appear in Item 8 of this Annual Report on Form 10-K. The information in this section should be read in conjunction with the Consolidated Financial Statements and related notes included herein in “ Item 8.
Biggest changeThe information in this section has been derived from the audited financial statements, which appear in Item 8 of this Annual Report on Form 10-K. The information in this section should be read in conjunction with the Consolidated Financial Statements and related notes included herein in “ Item 8.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations This discussion and analysis reflects our financial statements and other relevant statistical data, and is intended to enhance your understanding of the financial condition and results of operations of Catalyst Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Catalyst Bank (the “Bank”), formerly known as St.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations This discussion and analysis reflects our financial statements and other relevant statistical data, and is intended to enhance your understanding of the financial condition and results of operations of Catalyst Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Catalyst Bank (the “Bank”).

Other CLST 10-K year-over-year comparisons