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What changed in Catalyst Bancorp, Inc.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Catalyst Bancorp, Inc.'s 2022 and 2023 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 2023 report.

+135 added−129 removedSource: 10-K (2024-03-28) vs 10-K (2023-03-30)

Top changes in Catalyst Bancorp, Inc.'s 2023 10-K

135 paragraphs added · 129 removed · 82 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

75 edited+51 added−45 removed24 unchanged
Biggest changeThe 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) 2022 ​ 2021 Allowance for loan losses, beginning of period ​ $ 2,276 ​ $ 3,022 ​ Provision for (reversal of) loan losses ​ (375) ​ ​ (660) ​ Net loan (charge-offs) recoveries: ​ ​ ​ ​ ​ One- to four-family residential ​ (69) ​ ​ (69) ​ Commercial real estate ​ - ​ ​ - ​ Construction and land ​ - ​ ​ - ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ 1 ​ ​ - ​ Consumer ​ (26) ​ ​ (17) ​ Total net charge-offs ​ (94) ​ ​ (86) ​ Allowance for loan losses, end of period ​ $ 1,807 ​ $ 2,276 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans at end of period ​ $ 133,607 ​ $ 132,103 ​ Total non-accrual loans at end of period ​ 1,494 ​ ​ 890 ​ Total non-performing loans at end of period ​ 1,685 ​ ​ 891 ​ Total average loans ​ ​ 132,503 ​ ​ 141,860 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for loan losses as a percent of: ​ ​ ​ ​ ​ ​ ​ ​ Total loans ​ 1.35 % ​ ​ 1.72 % Non-accrual loans ​ 120.95 ​ ​ ​ 255.73 ​ Non-performing loans ​ 107.24 ​ ​ ​ 255.44 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net charge-offs (recoveries) as a percent of average loans by portfolio: ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ ​ (0.08) % ​ ​ (0.07) % Commercial real estate ​ ​ - ​ ​ ​ - ​ Construction and land ​ ​ - ​ ​ ​ - ​ Multi-family residential ​ ​ - ​ ​ ​ - ​ Commercial and industrial ​ ​ 0.01 ​ ​ ​ - ​ Consumer ​ ​ (0.66) ​ ​ ​ (0.37) ​ Total average loans ​ (0.07) ​ ​ ​ (0.06) ​ ​ ​ 34 Table of Contents The following table shows how our allowance for loan losses is allocated by type of loan at each of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2022 ​ 2021 (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 ​ $ 1,224 ​ 67.7 % ​ 65.5 % ​ $ 1,573 ​ 69.1 % ​ 66.3 % Commercial real estate ​ 248 13.7 ​ ​ 14.5 ​ ​ 370 16.3 ​ 17.5 ​ Construction and land ​ 74 4.1 ​ ​ 4.6 ​ ​ 55 2.4 ​ 3.1 ​ Multi-family residential ​ 40 2.2 ​ ​ 2.4 ​ ​ 73 3.2 ​ 3.5 ​ Commercial and industrial ​ 175 9.7 ​ ​ 10.4 ​ ​ 137 6.0 ​ 6.3 ​ Consumer ​ 46 2.6 ​ ​ 2.6 ​ ​ 68 3.0 ​ 3.3 ​ Total ​ $ 1,807 ​ 100.0 % ​ 100.0 % ​ $ 2,276 ​ 100.0 % ​ 100.0 % ​ Investment Securities .
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 .
Economic Value of Equity. Economic value of equity (“EVE”) represents the market value of portfolio equity, which is different from book value, and is equal to the market value of assets minus the market value of liabilities (that is, the difference between incoming and outgoing discounted cash flows of assets and liabilities) with adjustments made for off-balance sheet items.
Economic value of equity (“EVE”) represents the market value of portfolio equity, which is different from book value, and is equal to the market value of assets minus the market value of liabilities (that is, the difference between incoming and outgoing discounted cash flows of assets and liabilities) with adjustments made for off-balance sheet items.
While management uses the best information available to make loan loss allowance evaluations, adjustments to the allowance may be necessary based on changes in economic and other conditions or changes in accounting guidance. In addition, the Office of the Comptroller of the Currency as an integral part of their examination processes periodically reviews our allowance for loan losses.
While management uses the best information available to make loan loss allowance evaluations, adjustments to the allowance may be necessary based on changes in economic and other conditions or changes in accounting guidance. In addition, the Office of the Comptroller of the Currency as an integral part of their examination processes periodically reviews our allowance for credit losses.
(4) Asset quality ratios are end of period ratios, except for net charge-offs to average loans receivable. (5) Non-performing assets consist of non-performing loans and foreclosed assets. Non-performing loans consist of all non-accruing loans and loans 90 days or more past due.
(4) Asset quality ratios are end of period ratios, except for net (charge-offs) recoveries to average loans receivable. (5) Non-performing assets consist of non-performing loans and foreclosed assets. Non-performing loans consist of all non-accruing loans and loans 90 days or more past due.
Our strategy for credit risk management focuses on an experienced team of credit professionals, well-defined credit policies and procedures, appropriate loan underwriting criteria and active credit monitoring. ​ 26 Table of Contents Critical Accounting Estimates In reviewing and understanding financial information for the Company, you are encouraged to read and understand the significant accounting policies used in preparing our financial statements.
Our strategy for credit risk management focuses on an experienced team of credit professionals, well-defined credit policies and procedures, appropriate loan underwriting criteria and active credit monitoring. ​ 27 Table of Contents Critical Accounting Estimates In reviewing and understanding financial information for the Company, you are encouraged to read and understand the significant accounting policies used in preparing our financial statements.
Our primary business consists of attracting deposits from the general public and using those funds together with funds we borrow from the Federal Home Loan Bank (“FHLB”) of Dallas and other sources to originate loans to our customers and invest in securities.
Our primary business consists of attracting deposits from the general public and using those funds together with funds we borrow from the Federal Home Loan Bank (“FHLB”) of Dallas, Federal Reserve Bank of Atlanta, and other sources to originate loans to our customers and invest in securities.
These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods. Allowance for Loan Losses.
These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods. Allowance for Credit Losses.
We believe there will be opportunities to utilize our strong capital position for expansion through acquisitions of other financial institutions in our current market area and adjoining markets in south Louisiana. ● Rebranding our banking franchise. St. Landry Homestead Federal Savings Bank completed its re-branding and changed its name to Catalyst Bank in June 2022.
We believe there will be opportunities to utilize our strong capital position for expansion through acquisitions of other financial institutions in our current market area and adjoining markets in south Louisiana. ● Rebranded franchise. St. Landry Homestead Federal Savings Bank completed its re-branding and changed its name to Catalyst Bank in June 2022.
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 reduce our level of 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 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.
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, and our performing TDRs. The increase in non-performing assets from December 31, 2021 to December 31, 2022, was primarily driven by an increase in our non-accruing one- to four-family residential loans.
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. The increase in non-performing loans from December 31, 2022 to December 31, 2023, was primarily driven by an increase in our non-accruing one- to four-family residential loans.
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. ​ 30 Table of Contents Comparison of Financial Condition at December 31, 2022 and December 31, 2021 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, 2023 and December 31, 2022 Total Assets .
The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an emerging growth company we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We have taken advantage of the benefits of this extended transition period.
The JOBS Act of 2012 contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an emerging growth company, we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We are taking advantage of the benefits of this extended transition period.
It is established through a provision for loan 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.
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.
While management is responsible for the establishment of the allowance for loan losses and for adjusting such allowance through provisions for loan losses, management may determine, as a result of such regulatory reviews, that an increase or decrease in the allowance or provision for loan 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 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.
To the extent that actual outcomes differ from management’s estimates, additional provisions to the allowance for loan losses may be required that would adversely impact earnings in future periods. ​ ​ 27 Table of Contents 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. Investment Securities. Available-for-sale securities consist of investment securities not classified as trading securities or held-to-maturity securities.
The Conversion was completed on October 12, 2021, at which time the Company acquired all of the issued and outstanding shares of common stock of St. Landry Homestead, which became the wholly owned subsidiary of Catalyst Bancorp, Inc. In June 2022, St. Landry Homestead changed its name to Catalyst Bank.
The Conversion was completed on October 12, 2021, at which time the Company acquired all of the issued and outstanding shares of common stock of the Bank, which became the wholly-owned subsidiary of Catalyst Bancorp. The Bank officially changed its name to Catalyst Bank in June 2022.
The change in income tax expense over the comparable periods was primarily due to the change in taxable earnings. ​ ​ 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 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.
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. We also have the ability to borrow from the FHLB.
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.
Results of operations are also affected by our provisions for loan losses, fee income and other non-interest income and non-interest expense. Non-interest expense principally consists of compensation, office occupancy and equipment expense, data processing, advertising and business promotion and other expense.
Results of operations are also affected by our provisions for credit losses, fee income and other non-interest income and non-interest expense. Non-interest expense principally consists of compensation, office occupancy and equipment expense, data processing, and other expense.
The allowance for loan losses totaled $1.8 million, or 1.35% of total loans, at December 31, 2022 and $2.3 million, or 1.72% of total loans, at December 31, 2021.
The allowance for loan losses totaled $2.1 million, or 1.47% of total loans, at December 31, 2023 and $1.8 million, or 1.35% of total loans, at December 31, 2022.
These policies are described in Note 1 of the notes to our financial statements. Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry.
These policies are described in Note 1 of the notes to our consolidated financial statements included in Item 8 of this Form 10-K. Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry.
Factors affecting the determination of whether an other-than-temporary impairment has occurred include, among other things, (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) that the Company does not intend to sell these securities, and (4) it is more likely than not that the Company will not be required to sell before a period of time sufficient to allow for any anticipated recovery in fair value.
Factors affecting the determination of whether an other-than-temporary impairment had occurred include, among other things, the length of time and the extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, that the Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell before a period of time sufficient to allow for any anticipated recovery in fair value. 29 Table of Contents Selected Financial and Other Data Set forth below is selected financial and other data of the Company at and for the dates indicated.
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) ​ ​ 2022 ​ ​ 2021 Fixed-rate ​ ​ Available-for-sale $ 79,552 $ 88,281 Held-to-maturity ​ ​ 13,475 ​ ​ 13,498 Total fixed-rate ​ ​ 93,027 ​ ​ 101,779 ​ ​ ​ ​ ​ ​ ​ Adjustable-rate ​ ​ ​ ​ ​ Available-for-sale ​ 50 ​ 58 Held-to-maturity ​ ​ - ​ ​ - Total adjustable-rate ​ ​ 50 ​ ​ 58 Total investment securities ​ $ 93,077 ​ $ 101,837 ​ ​ ​ 36 Table of Contents 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) ​ ​ 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 .
The following table sets forth the composition of our securities portfolio as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2022 ​ 2021 (Dollars in thousands) Amortized Cost % of Total ​ Fair Value Amortized Cost ​ % of Total Fair Value Securities available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ 74,044 ​ 70.8 % ​ $ 64,167 ​ $ 75,374 ​ 73.4 % ​ $ 74,663 U.S.
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.
Item 1. Business ”. Overview Catalyst Bancorp, Inc. was incorporated by St. Landry Homestead Federal Savings Bank in February 2021 as part of the conversion of St. Landry Homestead from the mutual to the stock form of organization (the “Conversion”).
Item 1. Business ”. Overview Catalyst Bancorp, Inc. (“Catalyst Bancorp” or the “Company”) is the holding company for Catalyst Bank (the “Bank”), formerly known as St. Landry Homestead Federal Savings Bank. The Company was incorporated by the Bank in February 2021 as part of the conversion of the Bank from the mutual to the stock form of organization (the “Conversion”).
Historically, we operated as a traditional thrift relying on long-term, single-family residential mortgage loans secured by properties located primarily in St. Landry Parish and adjoining areas to generate interest income. We have re-focused our business strategy to a relationship-based community bank model.
Historically, we operated as a traditional thrift relying on long-term, single-family residential mortgage loans secured by properties located primarily in St. Landry Parish and adjoining areas to generate interest income.
The evaluations take into consideration such factors as changes in the types and amount of loans in the loan portfolio, historical loss experience, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, estimated losses relating to specifically identified loans, and current economic conditions.
Management’s estimate of the allowance for credit losses considers factors such as changes in the types and amount of loans in the loan portfolio, historical loss experience, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, estimated losses relating to specifically identified loans, current and future economic conditions, and forecasted information.
In September 2022, the Company issued its initial grants under the Company’s 2022 Stock Option Plan and 2022 Recognition and Retention Plan and Trust Agreement. ● Expand our franchise through possible acquisition of other financial institutions.
Our mutual-to-stock Conversion was a key contributor to our ability to attract and retain talent. In September 2022, the Company issued its initial grants under the Company’s 2022 Stock Option Plan and 2022 Recognition and Retention Plan and Trust Agreement. ● Expand our franchise through possible acquisition of other financial institutions.
Net interest income was $7.3 million for the year ended December 31, 2022, up $427,000, or 6.2%, compared to the year ended December 31, 2021. Our average interest rate spread was 2.56% and 2.73% for the years ended December 31, 2022 and 2021, respectively.
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.
Our results of operations are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, government policies and actions of regulatory authorities.
Our results of operations are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, government policies and actions of regulatory authorities. Future changes in applicable law, regulations or government policies may materially impact our financial condition and results of operations.
Income from bank-owned life insurance (“BOLI”) increased by $224,000 to $314,000 for the year ended December 31, 2022, compared to the prior year, largely due to an aggregate of $10.0 million in additional BOLI policies purchased in March and April of 2022.
The securities were sold for a total of $1.9 million. Income from bank-owned life insurance (“BOLI”) increased by $95,000, or 30.3%, to $409,000 for the year ended December 31, 2023, compared to 2022, largely due to an aggregate of $10.0 million in additional BOLI policies purchased in March and April of 2022.
The information at and for the years ended December 31, 2022 and 2021 is derived from the audited financial statements that appear elsewhere in this Annual Report on Form 10-K. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, (Dollars in thousands) ​ 2022 ​ 2021 Selected Financial Condition Data: ​ Total assets ​ $ 263,324 ​ $ 285,610 Cash and cash equivalents ​ 13,472 ​ 40,884 Investment securities: ​ ​ Available for sale ​ 79,602 ​ 88,339 Held to maturity ​ 13,475 ​ 13,498 Loans receivable, net of unearned income ​ 133,607 ​ 132,103 Allowance for loan losses ​ ​ 1,807 ​ ​ 2,276 Total deposits ​ 165,094 ​ 176,795 FHLB advances ​ 9,198 ​ 9,018 Shareholders’ equity ​ 88,474 ​ 98,553 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, (Dollars in thousands) ​ 2022 ​ 2021 Selected Operating Data: ​ ​ ​ ​ Total interest income ​ $ 8,014 ​ $ 7,699 ​ Total interest expense ​ 683 ​ 795 ​ Net interest income ​ 7,331 ​ 6,904 ​ Provision for (reversal of) loan losses ​ (375) ​ (660) ​ Net interest income after provision for (reversal of) loan losses ​ 7,706 ​ 7,564 ​ Total non-interest income ​ 1,173 ​ 2,626 ​ Total non-interest expense ​ 8,720 ​ 7,791 ​ Income (loss) before income taxes ​ 159 ​ 2,399 ​ Income tax expense (benefit) ​ (21) ​ 484 ​ Net income ​ $ 180 ​ $ 1,915 ​ ​ ​ ​ ​ ​ ​ ​ ​ Selected Performance Ratios: (1) ​ ​ ​ Average yield on interest-earning assets ​ 3.00 % 3.24 % Average rate on interest-bearing liabilities ​ 0.44 ​ 0.51 ​ Average interest rate spread (2) ​ 2.56 ​ 2.73 ​ Net interest margin (2) ​ 2.75 ​ 2.91 ​ Average interest-earning assets to average interest-bearing liabilities ​ 170.73 ​ 152.50 ​ Net interest income after provision for loan losses to non-interest expense ​ 88.37 ​ 97.09 ​ Total non-interest expense to average assets ​ 3.08 ​ 3.08 ​ Efficiency ratio (3) ​ 102.55 ​ 81.76 ​ Return on average assets (ratio of net income to average total assets) ​ 0.06 ​ 0.76 ​ Return on average equity (ratio of net income to average total equity) ​ 0.19 ​ 3.11 ​ ​ 29 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the ​ ​ Year Ended December 31, ​ ​ 2022 ​ 2021 Asset Quality Ratios: (4) ​ ​ ​ Non-accrual loans as a percent of total loans outstanding ​ 1.12 % ​ 0.67 % Non-performing assets as a percent of total assets (5) ​ 0.76 ​ ​ 0.43 ​ Non-performing assets and troubled debt restructurings as a percent of total assets (5) ​ 1.06 ​ ​ 1.09 ​ Allowance for loan losses as a percent of total loans outstanding ​ 1.35 ​ ​ 1.72 ​ Allowance for loan losses as a percent of non-performing loans ​ 107.24 ​ ​ 255.44 ​ Net charge-offs to average loans receivable ​ 0.07 ​ ​ 0.06 ​ ​ ​ ​ ​ ​ ​ ​ Capital Ratios: (6) ​ ​ ​ Common equity Tier 1 capital ​ 56.17 % ​ 63.51 % Tier 1 leverage capital ​ 30.37 ​ ​ 27.38 ​ Tier 1 risk-based capital ​ 56.17 ​ ​ 63.51 ​ Total risk-based capital ​ 57.42 ​ ​ 64.77 ​ Average equity to average assets ​ 32.90 ​ ​ 24.34 ​ ​ ​ ​ ​ ​ ​ ​ Other Data: ​ ​ ​ Banking offices ​ 6 ​ 6 ​ Full-time equivalent employees ​ 50 ​ 56 ​ (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, 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 following table presents actual and required capital. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actual ​ To be Well Capitalized under the Prompt Corrective Action Provision (Dollars in thousands) Amount Ratio ​ Amount Ratio As of December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Equity Tier 1 Capital ​ $ 78,527 ​ 56.17 % ​ $ 9,087 ​ >6.5 % Tier 1 Risk-Based Capital ​ 78,527 ​ 56.17 ​ ​ 11,184 ​ >8.0 ​ Total Risk-Based Capital ​ 80,275 ​ 57.42 ​ ​ 13,980 ​ >10.0 ​ Tier 1 Leverage Capital ​ 78,527 ​ 30.37 ​ ​ 12,929 ​ >5.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2021 ​ ​ ​ ​ ​ ​ Common Equity Tier 1 Capital ​ $ 77,819 ​ 63.51 % ​ $ 7,965 ​ >6.5 % Tier 1 Risk-Based Capital ​ 77,819 ​ 63.51 ​ ​ 9,803 ​ >8.0 ​ Total Risk-Based Capital ​ 79,360 ​ 64.77 ​ ​ 12,253 ​ >10.0 ​ Tier 1 Leverage Capital ​ 77,819 ​ 27.38 ​ ​ 14,210 ​ >5.0 ​ ​ ​ Recent Accounting Pronouncements For a discussion of the impact of recent accounting pronouncements, see Note 1 of the notes to our financial statements. ​ ​
The following table presents actual and required capital. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actual ​ To be Well Capitalized under the Prompt Corrective Action Provision (Dollars in thousands) Amount Ratio ​ Amount Ratio As of December 31, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Equity Tier 1 Capital ​ $ 79,468 ​ 52.34 % ​ $ 9,870 ​ >6.5 % Tier 1 Risk-Based Capital ​ 79,468 ​ 52.34 ​ ​ 12,147 ​ >8.0 ​ Total Risk-Based Capital ​ 81,371 ​ 53.59 ​ ​ 15,184 ​ >10.0 ​ Tier 1 Leverage Capital ​ 79,468 ​ 31.67 ​ ​ 12,546 ​ >5.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2022 ​ ​ ​ ​ ​ ​ Common Equity Tier 1 Capital ​ $ 78,527 ​ 56.17 % ​ $ 9,087 ​ >6.5 % Tier 1 Risk-Based Capital ​ 78,527 ​ 56.17 ​ ​ 11,184 ​ >8.0 ​ Total Risk-Based Capital ​ 80,275 ​ 57.42 ​ ​ 13,980 ​ >10.0 ​ Tier 1 Leverage Capital ​ 78,527 ​ 30.37 ​ ​ 12,929 ​ >5.0 ​ ​ 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. ​ Item 7A.
The following table sets forth our EVE as of December 31, 2022 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 300 ​ $ 85,492 $ (9,431) (9.9) % ​ 37.0 % (1.3) % 200 ​ 87,606 ​ (7,317) (7.7) ​ 36.9 (1.4) ​ 100 ​ 90,497 ​ (4,426) (4.7) ​ 37.2 (1.1) ​ Static ​ 94,923 ​ - - ​ 38.3 - ​ (100) ​ 98,394 ​ 3,471 3.7 ​ 38.8 0.5 ​ (200) ​ 98,241 ​ 3,318 3.5 ​ 37.7 (0.6) ​ (300) ​ 100,683 ​ 5,760 6.1 ​ 37.9 (0.4) ​ ​ 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, 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.
Non-interest expense increased $929,000, or 11.9%, to $8.7 million for the year ended December 31, 2022, compared to $7.8 million for the year ended December 31, 2021. Total non-interest expense for the year ended December 31, 2022 included $214,000 of rebranding-related expenses.
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.
Since August 2020, the Company has made several personnel changes and additional new hires, including but not limited to: a new President and CEO, a Chief Credit Officer, a Director of Operations, an Acadiana Market President, a Chief Financial Officer and several commercial bankers.
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.
The following table summarizes the results of our net interest income model as of December 31, 2022, 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): ​ ​ ​ ​ ​ ​ ​ ​ 300 ​ $ 7,706 $ (195) ​ (2.5) % 200 ​ 7,783 ​ (118) (1.5) ​ 100 ​ 7,751 ​ (150) (1.9) ​ Static ​ 7,712 ​ (189) (2.4) ​ (100) ​ 7,423 ​ (478) (6.0) ​ (200) ​ 7,138 ​ (763) (9.7) ​ (300) ​ 6,912 ​ (989) (12.5) ​ ​ The above table indicates that as of December 31, 2022, in the event of an immediate and sustained 100 basis point increase in interest rates, our net interest income for the 12 months ending December 31, 2023 would be expected to decrease by $150,000 or 1.9%.
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%.
Government and agency obligations ​ ​ 13,006 ​ 12.4 ​ ​ 10,288 ​ 13,019 ​ 12.7 ​ ​ 12,667 Municipal obligations ​ 469 ​ 0.5 ​ ​ 436 ​ 479 ​ 0.4 ​ ​ 485 Total securities held to maturity ​ ​ 13,475 ​ 12.9 ​ ​ 10,724 ​ 13,498 ​ 13.1 ​ ​ ​ 13,152 Total investment securities ​ $ 104,563 ​ 100.0 % ​ $ 90,326 ​ $ 102,701 ​ 100.0 % $ 101,491 ​ ​ 35 Table of Contents 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, 2022. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contractual Maturity as of December 31, 2022 (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 ​ $ - ​ ​ $ 2,434 ​ ​ $ 12,706 ​ ​ $ 58,904 ​ ​ $ 74,044 ​ U.S.
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.
We will continue to enhance our staff capacity through training and hiring of new employees as needed to facilitate our growth. In addition, we continue to review our technology and infrastructure and will implement new and enhanced technology tools and on-line services preferred by many of our existing and prospective customers. ● Recruiting and retaining top talent and personnel .
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 .
Government and agency obligations ​ ​ 10,979 ​ 10.5 ​ ​ ​ 9,917 ​ 9,347 ​ 9.1 ​ ​ 9,237 Municipal obligations ​ ​ 6,065 ​ 5.8 ​ ​ 5,518 ​ 4,482 ​ 4.4 ​ ​ ​ 4,439 Total securities available-for-sale ​ ​ 91,088 ​ 87.1 ​ ​ 79,602 ​ 89,203 ​ 86.9 ​ ​ ​ 88,339 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities held-to-maturity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S.
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.
Declines in the estimated fair value of individual investment securities below their cost that are considered other-than-temporary are recognized as realized losses in the statement of income.
If declines in the estimated fair value of individual investment securities below their cost were considered other-than-temporary, impairment losses were recognized in the statement of income with an offset to the carrying value of the investment security.
Future changes in applicable law, regulations or government policies may materially impact our financial condition and results of operations. ​ 25 Table of Contents Business Strategy Our business strategy is focused on embracing a relationship-oriented community bank model targeting small- to mid-sized businesses and business professionals in our market areas while continuing to serve our traditional customer base.
Business Strategy Our business strategy is focused on embracing a relationship-oriented community bank model targeting small- to mid-sized businesses and business professionals in our market areas while continuing to serve our traditional customer base.
Unrealized holding gains and losses, net of tax, on available-for-sale securities are included in other comprehensive income. At December 31, 2022 and December 31, 2021, net unrealized losses on available-for-sale securities totaled $11.5 million and $864,000, respectively. The increase in unrealized losses on available-for-sale securities relates principally to the increases in market rates of similar types of securities.
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.
During the fourth quarter of 2021, the Company deployed $41.9 million of the proceeds from our IPO into the investment securities portfolio. Interest income on other interest-earning assets, consisting primarily of interest-earning cash and deposits at other financial institutions, increased primarily due to the impact of rising short-term interest rates during 2022. 41 Table of Contents Interest Expense.
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.
Government and agency obligations ​ 0.50 ​ ​ 1.08 ​ ​ 1.26 ​ ​ 2.13 ​ ​ 1.30 ​ Municipal obligations ​ - ​ ​ 0.83 ​ ​ 2.92 ​ ​ 1.35 ​ ​ 1.85 ​ Total weighted average yield ​ - ​ ​ 1.21 ​ ​ 1.94 ​ ​ 1.62 ​ ​ 1.63 ​ ​ Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments, or call options.
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.
Our borrowings, which consist of FHLB advances, amounted to $9.2 million at December 31, 2022 compared to $9.0 million at December 31, 2021. The increase 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.
During 2022, the Company also recorded losses on the disposal of fixed assets with a total net book value of $77,000. Of the assets disposed, $55,000 was attributable to branch signage that was replaced due to the Bank’s rebranding. ​ 42 Table of Contents Non-interest Expense.
Non-interest income for the year ended December 31, 2022 included losses on the disposal of fixed assets of $77,000. Of the losses on disposed assets, $55,000 was attributable to branch signage that was replaced due to our rebranding. ​ ​ 42 Table of Contents Non-interest Expense .
All average balances are based on daily balances. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2022 ​ 2021 (Dollars in thousands) ​ Average Balance ​ Interest ​ Average Yield/Rate ​ Average Balance ​ Interest ​ Average Yield/Rate Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans receivable (1) ​ $ 132,503 ​ $ 6,127 4.62 % ​ $ 141,860 ​ $ 6,965 4.91 % Investment securities (TE)(2) ​ 104,421 ​ 1,480 1.43 ​ ​ 57,967 ​ 674 1.18 ​ Other interest-earning assets ​ 30,376 ​ 407 1.34 ​ ​ 37,912 ​ 60 0.16 ​ Total interest-earning assets (TE) ​ 267,300 ​ 8,014 3.00 ​ ​ 237,739 ​ 7,699 3.24 ​ Non-interest-earning assets ​ 15,631 ​ ​ ​ ​ ​ ​ ​ 15,101 ​ ​ ​ ​ ​ ​ Total assets ​ $ 282,931 ​ ​ ​ ​ ​ ​ ​ $ 252,840 ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NOW, money market and savings accounts ​ 85,879 ​ 114 0.13 % ​ 78,153 ​ 108 0.14 % Certificates of deposit ​ 61,387 ​ 288 0.47 ​ ​ 68,815 ​ 415 0.60 ​ Total interest-bearing deposits ​ 147,266 ​ 402 0.27 ​ ​ 146,968 ​ 523 0.36 ​ FHLB advances ​ 9,294 ​ 281 3.02 ​ ​ 8,927 ​ 272 3.05 ​ Total interest-bearing liabilities ​ 156,560 ​ 683 0.44 ​ ​ 155,895 ​ 795 0.51 ​ Non-interest-bearing liabilities ​ 33,297 ​ ​ ​ ​ ​ ​ ​ 35,403 ​ ​ ​ ​ ​ ​ Total liabilities ​ 189,857 ​ ​ ​ ​ ​ ​ ​ 191,298 ​ ​ ​ ​ ​ ​ Shareholders' equity ​ 93,074 ​ ​ ​ ​ ​ ​ ​ 61,542 ​ ​ ​ ​ ​ ​ Total liabilities and shareholders' equity ​ $ 282,931 ​ ​ ​ ​ ​ ​ ​ $ 252,840 ​ ​ ​ ​ ​ ​ Net interest-earning assets ​ $ 110,740 ​ ​ ​ ​ ​ ​ ​ $ 81,844 ​ ​ ​ ​ ​ ​ Net interest income; average interest rate spread (TE) ​ ​ ​ ​ $ 7,331 2.56 % ​ ​ ​ ​ $ 6,904 2.73 % Net interest margin (TE)(3) ​ ​ ​ ​ ​ ​ 2.75 ​ ​ ​ ​ ​ ​ ​ 2.91 ​ Average interest-earning assets to average interest-bearing liabilities ​ ​ ​ ​ ​ ​ 170.73 ​ ​ ​ ​ ​ ​ ​ 152.50 ​ (1) Includes non-accrual loans during the respective periods.
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.
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) ​ 2022 ​ 2021 FHLB advances ​ ​ ​ ​ Average balance ​ $ 9,294 ​ ​ $ 8,927 ​ Maximum balance at any month-end during the period ​ 9,198 ​ ​ ​ 9,018 ​ Balance at end of period ​ 9,198 ​ ​ 9,018 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average interest rate during the period ​ 3.02 % ​ 3.05 % Weighted average interest rate at end of period (1) ​ 0.93 ​ ​ 0.93 ​ (1) Reflects the weighted average contractual rate of FHLB advances.
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 Company reported an income tax benefit of $21,000 for the year ended December 31, 2022, compared to income tax expense of $484,000 for the year ended December 31, 2021.
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 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, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Commitment Expiration — Per Period (Dollars in thousands) ​ Total Amounts Committed at December 31, 2022 ​ To 1 Year ​ 1 - 3 Years ​ 3 - 5 Years ​ After 5 Years Commitments to originate loans ​ $ 1,960 ​ $ 1,960 ​ $ - ​ $ - ​ $ - Undisbursed portion of construction loans in process ​ 7,212 ​ 1,855 ​ 5,357 ​ - ​ - Unused lines of credit ​ 12,453 ​ 6,146 ​ 5,702 ​ - ​ 605 Unused overdraft privilege amounts ​ 1,132 ​ - ​ - ​ - ​ 1,132 Letters of credit ​ ​ 4 ​ ​ 4 ​ ​ - ​ ​ - ​ ​ - Total commitments ​ $ 22,761 ​ $ 9,965 ​ $ 11,059 ​ $ - ​ $ 1,737 ​ ​ ​ 45 Table of Contents The following table summarizes our contractual cash obligations at December 31, 2022. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments Due By Period (Dollars in thousands) ​ Total at December 31, 2022 ​ To 1 Year ​ 1 - 3 Years ​ 3 - 5 Years ​ After 5 Years Certificates of deposit ​ $ 52,503 ​ $ 40,136 ​ $ 11,351 ​ $ 1,016 ​ $ - FHLB advances ​ 10,000 ​ - ​ 3,000 ​ 3,000 ​ 4,000 Total long-term debt ​ 62,503 ​ 40,136 ​ 14,351 ​ 4,016 ​ 4,000 Operating lease obligations ​ - ​ - ​ - ​ - ​ - Total contractual obligations ​ $ 62,503 ​ $ 40,136 ​ $ 14,351 ​ $ 4,016 ​ $ 4,000 ​ The Bank exceeded all regulatory capital requirements and was categorized as well-capitalized at December 31, 2022 and December 31, 2021.
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.
The following table presents total deposits by account type for the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ ​ ​ ​ ​ (Dollars in thousands) Amount % Amount % ​ Change Non-interest-bearing demand deposits ​ $ 33,657 20.4 % ​ $ 30,299 17.1 % ​ $ 3,358 ​ 11.1 % Negotiable order of withdrawal (“NOW”) ​ 36,991 22.4 ​ ​ 34,357 19.4 ​ ​ 2,634 ​ 7.7 ​ Money market ​ 15,734 9.5 ​ ​ 18,878 10.7 ​ ​ (3,144) ​ (16.7) ​ Savings ​ 26,209 15.9 ​ ​ 26,698 15.1 ​ ​ (489) ​ (1.8) ​ Certificates of deposit ​ ​ 52,503 31.8 ​ ​ ​ 66,563 37.7 ​ ​ ​ (14,060) ​ (21.1) ​ Total deposits ​ $ 165,094 100.0 % ​ $ 176,795 100.0 % ​ $ (11,701) ​ (6.6) ​ ​ 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, ​ ​ 2022 ​ 2021 (Dollars in thousands) Average Balance Interest Expense Average Rate Paid ​ Average Balance Interest Expense Average Rate Paid Negotiable order of withdrawal (“NOW”) ​ $ 40,231 ​ $ 46 0.11 % ​ $ 35,998 ​ $ 44 0.12 % Money market ​ 18,588 ​ 32 0.17 ​ ​ 17,860 ​ 36 0.20 ​ Savings accounts ​ ​ 27,060 ​ ​ 36 ​ 0.13 ​ ​ ​ 24,295 ​ ​ 28 ​ 0.12 ​ Certificates of deposit ​ 61,387 ​ 288 0.47 ​ ​ 68,815 ​ 415 0.60 ​ Total interest-bearing deposits ​ $ 147,266 ​ $ 402 0.27 ​ ​ $ 146,968 ​ $ 523 0.36 ​ Non-interest-bearing demand deposits ​ ​ 32,560 ​ ​ - ​ ​ ​ ​ ​ 34,056 ​ ​ - ​ ​ ​ Total deposits ​ $ 179,826 ​ $ 402 ​ ​ ​ $ 181,024 ​ $ 523 ​ ​ ​ ​ ​ ​ ​ ​ 37 Table of Contents The following table shows the maturities and weighted average contractual interest rates of our total certificates of deposit at December 31, 2022 by time remaining to maturity. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ Amount ​ Weighted Average Rate Balance at December 31, 2022 maturing in: ​ ​ ​ ​ ​ Three months or less ​ $ 13,553 0.55 % Over three months through six months ​ 11,011 0.76 ​ Over six through 12 months ​ 15,572 1.36 ​ Over 12 months ​ 12,367 1.45 ​ Total certificates of deposit ​ $ 52,503 1.05 ​ ​ 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, 2022 by time remaining to maturity. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) Amount ​ Weighted Average Rate Balance at December 31, 2022 maturing in: ​ ​ ​ ​ ​ Three months or less ​ $ 977 0.91 % Over three months through six months ​ 2,553 0.53 ​ Over six through 12 months ​ 3,205 1.41 ​ Over 12 months ​ 2,178 1.50 ​ Total certificates of deposit with balances in excess of $250,000 ​ $ 8,913 1.13 ​ ​ The estimated amount of our total uninsured deposits (that is deposits in excess of the FDIC’s insurance limit) was $59.1 million and $48.9 million, respectively, at December 31, 2022 and 2021. ​ ​ 38 Table of Contents 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 .
The following table shows the composition of our loan portfolio by type of loan at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ ​ ​ ​ ​ (Dollars in thousands) Amount % Amount % ​ Change Real estate loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ $ 87,508 65.5 % ​ $ 87,564 66.3 % ​ $ (56) ​ (0.1) % Commercial real estate ​ 19,437 14.5 ​ ​ 23,112 17.5 ​ ​ (3,675) ​ (15.9) ​ Construction and land ​ 6,172 4.6 ​ ​ 4,079 3.1 ​ ​ 2,093 ​ 51.3 ​ Multi-family residential ​ 3,200 2.4 ​ ​ 4,589 3.5 ​ ​ (1,389) ​ (30.3) ​ Total real estate loans ​ ​ 116,317 87.0 ​ ​ ​ 119,344 90.4 ​ ​ ​ (3,027) ​ (2.5) ​ Other loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 13,843 10.4 ​ ​ ​ 8,374 6.3 ​ ​ ​ 5,469 ​ 65.3 ​ Consumer ​ ​ 3,447 2.6 ​ ​ ​ 4,385 3.3 ​ ​ ​ (938) ​ (21.4) ​ Total other loans ​ ​ 17,290 13.0 ​ ​ ​ 12,759 9.6 ​ ​ ​ 4,531 ​ 35.5 ​ Total loans ​ $ 133,607 100.0 % ​ ​ 132,103 100.0 % ​ $ 1,504 ​ 1.1 ​ ​ ​ ​ 31 Table of Contents The following table shows the scheduled contractual maturities of our loans as of December 31, 2022.
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.
Under the 2023 Repurchase Plan, the Company may purchase up to 265,000 shares, or approximately 5% of the Company’s outstanding common stock. ​ 39 Table of Contents Average Balances, Net Interest Income, and Yields Earned and Rates Paid.
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.
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 year ended December 31, 2022, purchases of $13.2 million of investment securities exceeded $10.9 million of maturities, calls and principal repayments.
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.
Shareholders’ Equity . Shareholders’ equity totaled $88.5 million, or 33.6% of total assets, at December 31, 2022, down $10.1 million, or 10.2%, from $98.6 million, or 34.5% of total assets, at December 31, 2021.
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.
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, 2022 vs 2021 ​ ​ Increase (Decrease) Due to ​ Total (Dollars in thousands) ​ Rate ​ Volume ​ Increase (Decrease) Interest income: ​ ​ ​ Loans receivable ​ $ (393) ​ $ (445) ​ $ (838) Investment securities ​ 174 ​ 632 ​ 806 Other interest-earning assets ​ 361 ​ (14) ​ 347 Total interest income ​ 142 ​ 173 ​ 315 Interest expense: ​ ​ ​ Savings, NOW and money market accounts ​ (4) ​ 10 ​ 6 Certificates of deposit ​ (85) ​ (42) ​ (127) Total deposits ​ (89) ​ (32) ​ (121) FHLB advances and other borrowings ​ (3) ​ 12 ​ 9 Total interest expense ​ (92) ​ (20) ​ (112) Increase (decrease) in net interest income ​ $ 234 ​ $ 193 ​ $ 427 ​ Comparison of Results of Operation for the Years Ended December 31, 2022 and 2021 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, 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.
Total investment securities, available-for-sale and held-to-maturity, amounted to $93.1 million at December 31, 2022, down $8.8 million, or 8.6%, from $101.8 million at December 31, 2021. Based on amortized cost, 87.1% and 86.9% of our total investment securities were classified as available-for-sale at December 31, 2022 and 2021, respectively.
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 average interest-bearing deposits were $147.3 million for the year ended December 31, 2022, up less than 1.0% compared to the prior year, while the average rate paid on interest-bearing deposits decreased by nine basis points to 0.27% for the year ended December 31, 2022, compared to 0.36% for the previous year. Net Interest Income.
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.
All of these estimates may be susceptible to significant changes as more information becomes available. The allowance for loans losses totaled $1.8 million, or 1.35% of total loans, at December 31, 2022 and $2.3 million, or 1.72% of total loans, at December 31, 2021.
At January 1, 2023, the allowance for loan losses totaled $2.0 million, or 1.51% of total loans, compared to $1.8 million, or 1.35% of total loans, at December 31, 2022.
A decline in government stimulus and persistent inflation during 2022 impacted our residential borrowers. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, (Dollars in thousands) ​ 2022 ​ 2021 Non-accruing loans ​ ​ ​ ​ One- to four-family residential ​ $ 1,392 ​ $ 791 ​ Commercial real estate ​ 51 ​ ​ - ​ Construction and land ​ 51 ​ ​ 68 ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ ​ - ​ ​ 18 ​ Consumer ​ - ​ ​ 13 ​ Total non-accruing loans ​ ​ 1,494 ​ ​ 890 ​ Accruing loans 90 days or more past due ​ ​ ​ ​ One- to four-family residential ​ 191 ​ ​ - ​ Commercial real estate ​ - ​ ​ - ​ Construction and land ​ - ​ ​ - ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ ​ - ​ ​ - ​ Consumer ​ - ​ ​ 1 ​ Total accruing loans 90 days or more past due ​ ​ 191 ​ ​ 1 ​ Total non-performing loans ​ ​ 1,685 ​ ​ 891 ​ Foreclosed assets ​ ​ 320 ​ ​ 340 ​ Total non-performing assets ​ ​ 2,005 ​ ​ 1,231 ​ Performing troubled debt restructurings ​ ​ 783 ​ ​ 1,873 ​ Total non-performing assets and performing TDRs ​ $ 2,788 ​ $ 3,104 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans ​ $ 133,607 ​ $ 132,103 ​ Total assets ​ ​ 263,324 ​ ​ 285,610 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total non-accruing loans as a percentage of total loans ​ ​ 1.12 % ​ ​ 0.67 % Total non-performing loans as a percentage of total loans ​ ​ 1.26 ​ ​ ​ 0.67 ​ Total non-performing loans as a percentage of total assets ​ ​ 0.64 ​ ​ ​ 0.31 ​ Total non-performing assets as a percentage of total assets ​ ​ 0.76 ​ ​ ​ 0.43 ​ ​ ​ 33 Table of Contents Allowance for Loan Losses .
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 .
Total interest income increased $315,000, or 4.1%, to $8.0 million for the year ended December 31, 2022, compared to $7.7 million for the year ended December 31, 2021.
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.
We are committed to maintaining a strong liquidity position. We monitor our liquidity position frequently and anticipate that we will have sufficient funds to meet our current funding commitments. Certificates of deposit that are scheduled to mature in less than one year from December 31, 2022 totaled $40.1 million.
We are committed to maintaining a strong liquidity position. We monitor our liquidity position daily and anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that the majority of maturing time deposits will be retained.
During 2022, the Company received and recognized into non-interest income a $171,000 BEA Program grant from the CDFI Fund.
In 2023, income from the CDFI Fund’s BEA Program grant totaled $437,000, up $266,000 from the amount received and recognized in 2022.
This evaluation is inherently subjective as it requires material estimates including, among others, exposure at default, the amount and timing of expected future cash flows on impacted loans, value of collateral, estimated losses on our commercial and residential loan portfolios and general amounts for historical loss experience.
This evaluation is inherently subjective as it requires material estimates including, among others, average historical loss experience, expected future loss rates, the amount and timing of expected future pay-downs on existing loans and fundings on unfunded commitments, and the value of underlying collateral. All of these estimates may be susceptible to significant changes as more information becomes available.
The decline in interest rate spread and net interest margin over the comparable periods was primarily the result of lower average yields on loans and a shift in the mix of our interest-earning assets as we grew our investment securities portfolio and experienced a decline in total average loans during 2022 compared to 2021. Provision for Loan Losses.
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 interest income on investment securities was primarily due to an increase in the average volume of our securities portfolio. The average amortized cost balance of our investment securities was up $46.5 million, or 80.1%, for the year ended December 31, 2022, compared to 2021.
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.
Total deposits were $165.1 million at December 31, 2022, down $11.7 million, or 6.6%, compared to December 31, 2021. The decline was primarily driven by a $14.1 million decline in certificates of deposit, partially offset by increases in non-interest-bearing and NOW account balances.
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.
In addition, average loans were $132.5 million for the year ended December 31, 2022, down $9.4 million, or 6.6%, compared to 2021. Loan income from the recognition of deferred PPP loan fees totaled $186,000 for the year ended December 31, 2022, down $154,000, or 45.3%, from $340,000 recognized in 2021.
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.
Loans . Total loans grew by $1.5 million, or 1.1%, to $133.6 million at December 31, 2022 compared to $132.1 million at December 31, 2021. Commercial and industrial and construction and land loan growth was partially offset by net declines across the other segments of the portfolio.
Total loans increased by $11.3 million, or 8.5%, to $144.9 million at December 31, 2023, compared to $133.6 million at December 31, 2022. During 2023, loan growth was primarily driven by commercial business.
The amounts recorded during both periods primarily reflect the release of reserve builds recorded during 2020 for the estimated effects of the COVID-19 pandemic on credit quality.
The reversal during the 2022 period primarily reflected the release of reserve builds recorded during 2020 for the estimated effects of the COVID-19 pandemic on credit quality. Non-interest Income . Non-interest income totaled $1.6 million for the year ended December 31, 2023, up $416,000, or 35.5%, compared to $1.2 million for 2022.
Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $772,000 for the year ended December 31, 2022.
Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. The details of these cash flow classifications are presented on the statement of cash flows included in Item 8 of this Form 10-K.
The increase in non-interest expense also reflects additional costs associated with operating as a public company and additional resources needed to expand our business. Salaries and employee benefits expense totaled $4.8 million for the year ended December 31, 2022, an increase of $191,000, or 4.1%, over the previous year primarily due to stock compensation expense in the 2022 period.
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.
We have identified the evaluation of the allowance for loan losses as a critical accounting policy where amounts are sensitive to material variation. The allowance for loan losses represents management’s estimate for probable losses that are inherent in our loan portfolio but which have not yet been realized as of the date of our balance sheet.
We have identified the evaluation of the allowance for credit losses as a critical accounting policy where amounts are sensitive to material variation. On January 1, 2023, the Company adopted the guidance under ASU No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.
Government and agency obligations ​ 1,000 ​ ​ 9,979 ​ ​ 9,000 ​ ​ 4,006 ​ ​ 23,985 ​ Municipal obligations ​ ​ - ​ ​ ​ 1,426 ​ ​ ​ 2,558 ​ ​ ​ 2,550 ​ ​ ​ 6,534 ​ Total ​ $ 1,000 ​ ​ $ 13,839 ​ ​ $ 24,264 ​ ​ $ 65,460 ​ ​ $ 104,563 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average yield ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ - % ​ 1.98 % ​ 2.22 % ​ 1.59 % ​ 1.71 % U.S.
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.
Removed
At December 31, 2022, we had total assets of $263.3 million, including total loans of $133.6 million and total investment securities of $93.1 million, total deposits of $165.1 million and total shareholders’ equity of $88.5 million.
Added
In 2021, we re-focused our business strategy to a relationship-based community bank model targeting small- to mid-sized businesses and business professionals in our market areas while continuing to serve our traditional customer base. The Conversion and offering were important factors in our efforts to become a more dynamic, profitable and growing institution.
Removed
We had net income of $180,000 for the year ended December 31, 2022, compared to net income of $1.9 million for the year ended December 31, 2021. During the year ended December 31, 2021, the Company received and recognized into income a $1.8 million grant from the Community Development Financial Institution (“CDFI”) Rapid Response Program.
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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.
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The Conversion and offering were important factors in our efforts to become a more dynamic, profitable and growing institution. 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.

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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, 2022 was $5.7 million. We owned all of such offices at December 31, 2022; 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, 2023 was $5.5 million. We owned all of such offices at December 31, 2023; none 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. ​ ​ 23 Table of Contents PART II
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

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine Safety Disclosures 23 PART II. ​ ​ Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24 Item 6. [Reserved.] 24 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 25 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 46 Item 8.
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

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe Company’s purchases of its common stock made during the fourth quarter of 2022 consisted of stock repurchases to fund the 2022 Recognition and Retention Plan and Trust Agreement, which is an affiliate of the Company. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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, 2022 ​ ​ 102,042 ​ $ 13.13 ​ ​ 102,042 ​ ​ 109,558 November 30, 2022 ​ ​ 61,928 ​ ​ 12.84 ​ ​ 61,928 ​ ​ 47,630 December 31, 2022 ​ ​ 15,838 ​ ​ 12.92 ​ ​ 15,838 ​ ​ 31,792 Total ​ ​ 179,808 ​ $ 13.01 ​ ​ 179,808 ​ ​ ​ ​ At December 31, 2022, there were 31,792 shares left to be purchased under the 2022 RRP.
Biggest changeUnder 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.
To 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 ​ ​ - ​ (b) Not applicable.
To 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.
As of the close of business on December 31, 2022, there were 5,290,000 shares of common stock outstanding, held by approximately 264 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, 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.
Under the 2023 Repurchase Plan, the Company may purchase up to 265,000 shares, or approximately 5% of the Company’s outstanding common stock. ​ ​
(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.
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(c) On May 17, 2022, shareholders of the Company approved the 2022 Recognition and Retention Plan and Trust Agreement (the “2022 RRP”), authorizing the purchase of 211,600 shares of the Company’s common stock, or 4.0% of the shares sold in the Conversion offering.
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On November 21, 2023, the Company’s Board of Directors approved the Company’s third share repurchase program (the “November 2023 Repurchase Plan”).
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During the first quarter of 2023, the Company completed repurchases of 31,792 additional shares of common stock to fund the 2022 RRP and commenced repurchases under its 2023 Repurchase Plan, which was announced on January 26, 2023.
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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. ​ ​

Other CLST 10-K year-over-year comparisons