Catalyst Bancorp, Inc.
For the period ended Jun 30, 2025. Filed Aug 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 13, 2025
CLST$17.50-2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-14.
0001558370-25-007768
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-13.
0001558370-25-011368
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 67 previous paragraphs and 82 current paragraphs.
37 unchanged; 27 reworded; 12 added; 3 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 56 previous and 61 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
During the six months ended June 30, 2025, $15.8 million of outstanding construction loans at December 31, 2024 were converted to amortizing real estate loans following the completion of their respective construction projects. Of the total, $2.8 million was classified as multi-family, $2.2 million was classified as one- to four-family residential, and the remaining balance was designated as commercial real estate.
Current report
The increase in savings deposits was primarily attributable to our high-yield savings special. The competitive offering has been successful at attracting new deposits and deepening relationships with existing customers. Certificates of deposit declined primarily due to the scheduled maturity of brokered deposits.
Current report
General. For the three months ended June 30, 2025, the Company reported net income of $521,000, compared to net income of $527,000 for the three months ended June 30, 2024. Net interest income was up $20,000, or 0.8%, for the three months ended June 30, 2025, compared to the same period in 2024. The provision for credit losses was zero for the three months ended June 30, 2025, compared to $99,000 for the same period in 2024. Non-interest income was $344,000 for the three months ended June 30, 2025, compared to $366,000 for the same period in 2024. Non-interest expense for the three months ended June 30, 2025 was up $110,000, or 5.3%, compared to the same period in 2024, largely due to increased salaries and employee benefits expense.
Current report
Non-interest Income*.*Non-interest income for the three months ended June 30, 2025 totaled $344,000, down $22,000 compared to the same period in 2024. Non-interest income for the three months ended June 30, 2024 includes $46,000 related to insurance proceeds received due to storm damage.
Current report
Salaries and employee benefits expense totaled $1.3 million for the three months ended June 30, 2025, up $119,000, or 10.4%, compared to the same period in 2024 primarily due to raises issued during the third quarter of 2024 and an increase in bonus expense.
Current report
Occupancy and equipment expense totaled $208,000 for the three months ended June 30, 2025, up $25,000 or 13.7%, compared to the same period in 2024 mainly due to new ATMs, computers, and other technology upgrades acquired and placed in service after June 30, 2024.
Current report
Data processing and communication expense totaled $176,000 for the three months ended June 30, 2025, up $38,000, or 27.5%, compared to the same period in 2024. Data processing and communication expense for the 2024 period benefited from the reversal of accrued data conversion expenses related to the Company’s upgrade to a new core processing system.
Current report
Interest Income. Total interest income increased $155,000, or 2.3%, to $6.8 million for the six months ended June 30, 2025, compared to the same period in 2024. Interest income on loans and investment securities was up $933,000, or 20.3%, and $34,000, or 6.4%, respectively. These increases were partially offset by a decrease in interest income on cash and due from banks of $812,000, or 53.9%.
Current report
The average yield on loans was 6.68% for the six months ended June 30, 2025, up from 6.27% for the same period in 2024. Average loans were $166.9 million for the six months ended June 30, 2025, up $19.5 million, or 13.3%, compared to the same period in 2024.
Current report
The increase in interest income on investment securities was primarily due to an increase in the average rate earned on our investment securities portfolio for the six months ended June 30, 2025, compared to the same period in 2024. The average rate earned on our investment securities portfolio was 2.42% for the six months ended June 30, 2025, up 63 bps compared to the same period in 2024 primarily due to higher-yielding investment securities purchased during 2024 and 2025.
Current report
Interest Expense. Total interest expense decreased $137,000, or 6.4%, to $2.0 million for the six months ended June 30, 2025, compared to $2.1 million for the same period in 2024. Interest expense on deposits was $1.9 million during the six months ended June 30, 2025, up $326,000, or 21.2%, compared to the same period in 2024. The average rate paid on interest-bearing deposits was 2.52% during the six months ended June 30, 2025, up 38 bps compared to the same period in 2024. Interest expense on borrowings decreased by $463,000, or 77.3%, during the six months ended June 30, 2025, compared to the same period in 2024, mainly due to the payoff of a BTFP advance during the fourth quarter of 2024.
Current report
Salaries and employee benefits expense totaled $2.5 million for the six months ended June 30, 2025, up $104,000, or 4.3%, compared to the same period in 2024 primarily due to raises issued during the third quarter of 2024.
Removed paragraphs (3)
Previous report
Revision of Prior Period Financial Statements
Previous report
As discussed in detail in Note 1 to the Company’s financial statements reported in this Quarterly Report on Form 10-Q, during June of 2024, the Bank became aware of interest owed by it to a deposit customer that was not properly accrued or paid by the Bank during the period beginning August 1, 2022 and ending March 31, 2024. Accordingly, management revised the prior period financial statements, related disclosures and supplemental information presented in this filing to correct the misstatement. The Company will also revise previously reported financial information for these immaterial errors in its future filings, as applicable. The information in this Item 2 and throughout this Quarterly Report on Form 10-Q has been adjusted to reflect these revisions as described in Note 1 to the Company’s financial statements of this Quarterly Report on Form 10-Q.
Previous report
average rate earned on other interest-earning assets was 4.36% for the three months ended March 31, 2025, down 72 basis points compared to the same period in 2024.
Reworded paragraphs (27)
Previous wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations at March 31, 2025 and for the three months ended March 31, 2025 and 2024 is intended to assist in understanding our financial condition and results of operations. The information contained in this section should be read in conjunction with the unaudited consolidated financial statements of the Company and the notes thereto appearing in Part I, Item 1, of this Quarterly Report on Form 10-Q as well as the business and financial information included in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2024.
Current wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations at June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 is intended to assist in understanding our financial condition and results of operations. The information contained in this section should be read in conjunction with the unaudited consolidated financial statements of the Company and the notes thereto appearing in Part I, Item 1, of this Quarterly Report on Form 10-Q as well as the business and financial information included in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2024.
Previous wording
The following is an overview of financial results for the three months ended March 31, 2025:
Current wording
The following is an overview of financial results for the three and six months ended June 30, 2025:
Previous wording
Total Assets. Total assets decreased $5.0 million, or 1.8%, to $271.6 million at March 31, 2025 from $276.7 million at December 31, 2024. The decrease was primarily due to a decrease in cash as a result of a decline in total public fund deposits.
Current wording
Total Assets. Total assets decreased $2.9 million, or 1.1%, to $273.8 million at June 30, 2025 from $276.7 million at December 31, 2024. The decrease was primarily due to a decrease in cash as a result of repurchases of the Company’s common stock and a decline in total deposits.
Previous wording
Allowance for Credit Losses. At both March 31, 2025 and December 31, 2024, the allowance for credit losses on loans totaled $2.5 million, or 1.51% of total loans. The allowance for credit losses on unfunded commitments totaled $104,000, down $17,000 from December 31, 2024. The provision for credit losses was zero and net loan charge-offs were $39,000 for the three months ended March 31, 2025. Net loan charge-offs were primarily related to residential mortgages and overdrawn deposit accounts.
Current wording
Allowance for Credit Losses. At June 30, 2025, the allowance for credit losses on loans totaled $2.4 million, or 1.45% of total loans, compared to $2.5 million, or 1.51% of total loans at December 31, 2024. The allowance for credit losses on unfunded commitments totaled $131,000, up $10,000 from December 31, 2024. The provision for credit losses was zero and net loan charge-offs were $81,000 for the six months ended June 30, 2025. Net loan charge-offs were primarily related to residential mortgages and overdrawn deposit accounts.
Previous wording
**Substandard Loans and Non-performing Assets.**The following table shows the amounts of our substandard loans and non-performing assets, which include non-accruing loans, accruing loans 90 days or more past due and foreclosed assets at the dates indicated. During the three months ended March 31, 2025, the Company downgraded a $3.3 million non-real estate, commercial loan relationship to substandard due to declines in debt service coverage. At March 31, 2025, all loans within the downgraded relationship were current and performing.
Current wording
**Substandard Loans and Non-performing Assets.**The following table shows the amounts of our substandard loans and non-performing assets, which include non-accruing loans, accruing loans 90 days or more past due and foreclosed assets at the dates indicated. During the six months ended June 30, 2025, the Company downgraded a $3.3 million non-real estate, commercial loan relationship to substandard due to declines in debt service coverage. At June 30, 2025, all loans within the downgraded relationship were current and performing.
Previous wording
Investment Securities*.* Total investment securities were $43.3 million at March 31, 2025, up $1.1 million, or 2.7%, compared to $42.2 million at December 31, 2024. Net unrealized losses on securities available-for-sale totaled $3.9 million at March 31, 2025, compared to $4.5 million at December 31, 2024. 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.
Current wording
Investment Securities*.* Total investment securities were $44.2 million at June 30, 2025, up $2.1 million, or 4.9%, compared to $42.2 million at December 31, 2024. Net unrealized losses on securities available-for-sale totaled $3.6 million at June 30, 2025, compared to $4.5 million at December 31, 2024. 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.
Previous wording
The decline in total deposits was largely due to fluctuations in public fund balances. Total public fund deposits amounted to $29.8 million, or 17% of total deposits, at March 31, 2025, compared to $35.6 million, or 19% of total deposits, at December 31, 2024. At March 31, 2025, approximately 80% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits from municipalities within our market.
Current wording
The decline in interest-bearing demand deposits was largely due to fluctuations in public fund balances. Total public fund deposits amounted to $29.0 million, or 16% of total deposits, at June 30, 2025, compared to $35.6 million, or 19% of total deposits, at December 31, 2024. At June 30, 2025, approximately 64% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits, compared to 83% at December 31, 2024.
Previous wording
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 $44.3 million at March 31, 2025 and $53.7 million at December 31, 2024. Total uninsured non-public fund deposits were approximately $19.2 million and $22.5 million at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025, the full amount of our public fund deposits in excess of the FDIC’s insurance limit were secured by either pledged investment securities of $19.1 million or $25.0 million of a custodial letter of credit granted by the Federal Home Loan Bank of Dallas.
Current wording
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 $49.6 million at June 30, 2025 and $53.7 million at December 31, 2024. Total uninsured non-public fund deposits were approximately $25.7 million and $22.5 million at June 30, 2025 and December 31, 2024, respectively. At June 30, 2025, the full amount of our public fund deposits in excess of the FDIC’s insurance limit were secured by either pledged investment securities of $25.8 million or $25.0 million of a custodial letter of credit granted by the Federal Home Loan Bank of Dallas.
Previous wording
Borrowings. Borrowings outstanding at March 31, 2025 and December 31, 2024 consisted of FHLB advances totaling $9.6 million. The small 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 $397,000 and $442,000 at March 31, 2025 and December 31, 2024, respectively.
Current wording
Borrowings. Borrowings outstanding at June 30, 2025 and December 31, 2024 consisted of FHLB advances totaling $9.6 million. The small 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 $353,000 and $442,000 at June 30, 2025 and December 31, 2024, respectively.
Previous wording
Shareholders’ Equity. Shareholders’ equity totaled $80.6 million, or 29.7% of total assets, at March 31, 2025, up $387,000, or 0.5%, from $80.2 million, or 29.0% of total assets, at December 31, 2024. During the three months ended March 31, 2025, shareholders’ equity increased by the Company’s net income of $586,000 and other comprehensive income of $466,000, which was the result of the change in unrealized losses on available-for-sale investment securities. These increases were partially offset by the Company’s repurchases of its common stock.
Current wording
Shareholders’ Equity. Shareholders’ equity totaled $80.8 million, or 29.5% of total assets, at June 30, 2025, up $595,000, or 0.7%, from $80.2 million, or 29.0% of total assets, at December 31, 2024. During the six months ended June 30, 2025, shareholders’ equity increased by the Company’s net income of $1.1 million and other comprehensive income of $686,000, which was the result of the change in unrealized losses on available-for-sale investment securities. These increases were partially offset by the Company’s repurchases of its common stock.
Previous wording
The Company repurchased 72,949 shares of its common stock at an average cost per share of $11.86 during the three months ended March 31, 2025. Under the November 2024 Repurchase Plan, 114,201 shares of the Company’s common stock were available for repurchase at March 31, 2025. Since the announcement of our first share repurchase plan on January 26, 2023 and through March 31, 2025, the Company has repurchased a total of 1,084,799 shares of its common stock, or approximately 21% of the common shares originally issued, at an average cost per share of $11.93.
Current wording
The Company repurchased 135,334 shares of its common stock at an average cost per share of $11.88 during the six months ended June 30, 2025. Under the November 2024 Repurchase Plan, 51,816 shares of the Company’s common stock were available for repurchase at June 30, 2025. Since the announcement of our first share repurchase plan on January 26, 2023 and through June 30, 2025, the Company has repurchased a total of 1,147,184 shares of its common stock, or approximately 22% of the common shares originally issued, at an average cost per share of $11.92.
Previous wording
Interest Income. Total interest income increased $219,000, or 6.9%, to $3.4 million for the three months ended March 31, 2025, compared to the same period in 2024. Interest income on loans was up $524,000 for the three months ended March 31, 2025, compared to the same period in 2024. This increase was partially offset by decreases in interest income on investment securities and cash and due from banks of $50,000 and $253,000, respectively, for the three months ended March 31, 2025, compared to the same period in 2024.
Current wording
Interest Income. Total interest income decreased $64,000, or 1.8%, to $3.5 million for the three months ended June 30, 2025, compared to the same period in 2024. Interest income on loans was up $409,000, or 17.2%, for the three months ended June 30, 2025, compared to the same period in 2024. Interest income on investment securities increased $84,000, or 40.0%, for the three months ended June 30, 2025, compared to the same period in 2024. These increases were offset by a decrease in interest income on cash and due from banks of $559,000, or 61.3%, for the three months ended June 30, 2025, compared to the same period in 2024.
Previous wording
The average loan yield was 6.68% for the three months ended March 31, 2025, up from 6.17% for the same period in 2024. Average loans were $166.1 million for the three months ended March 31, 2025, up $21.7 million, or 15.0%, compared to the same period in 2024. At March 31, 2025, approximately 51% of our total loans have adjustable rates and approximately 51% of total loans are scheduled to re-price or mature during the next 12 months.
Current wording
The average loan yield was 6.68% for the three months ended June 30, 2025, up from 6.38% for the same period in 2024. Average loans were $167.6 million for the three months ended June 30, 2025, up $17.4 million, or 11.6%, compared to the same period in 2024. At June 30, 2025, approximately 51% of our total loans have adjustable rates and approximately 45% of total loans are scheduled to re-price or mature during the next 12 months.
Previous wording
The decrease in interest income on investment securities was primarily due to the decrease in the average balance of total investment securities as a result of the sales executed during the three months ended March 31, 2024. The average rate earned on our investment securities portfolio was 2.35% for the three months ended March 31, 2025, up 64 basis points compared to the same period 2024 primarily due to investment securities purchased after March 31, 2024.
Current wording
The increase in interest income on investment securities was primarily due to an increase in the average rate earned on investment securities as a result of security purchases during 2024 and 2025. The average rate earned on our investment securities portfolio was 2.49% for the three months ended June 30, 2025, up 58 bps compared to the same period in 2024.
Previous wording
Interest income on other interest-earning assets, consisting primarily of interest-earning cash and deposits at other financial institutions, decreased mainly due to the decline in the average balance of interest-earning cash, as well as a decline in the average rate earned. The
Current wording
Interest income on interest-earning cash and due from banks, included in other interest-earning assets in the preceding tables, decreased mainly due to the decline in the average balance of interest-earning cash, as well as a decline in the average rate earned. The average rate earned on other interest-earning assets was 4.53% for the three months ended June 30, 2025, down 80 bps compared to the same period in 2024.
Previous wording
Interest Expense. Total interest expense decreased $53,000, or 5.0%, to $1.0 million for the three months ended March 31, 2025, compared to $1.1 million for the same period in 2024. Interest expense on deposits was $941,000 during the three months ended March 31, 2025, up $172,000, or 22.4%, compared to the same period in 2024. The average rate paid on interest-bearing deposits was 2.54% during the three months ended March 31, 2025, up 42 basis points compared to the same period in 2024. Interest expense on borrowings decreased by $225,000 during the three months ended March 31, 2025 compared to the same period in 2024 mainly due to the payoff of an advance under the Bank Term Funding Program (“BTFP”) during the fourth quarter of 2024.
Current wording
Interest Expense. Total interest expense decreased $84,000, or 7.8%, to $993,000 for the three months ended June 30, 2025, compared to $1.1 million for the same period in 2024. Interest expense on deposits was $925,000 during the three months ended June 30, 2025, up $154,000, or 20.0%, compared to the same period in 2024. The average rate paid on interest-bearing deposits was 2.49% during the three months ended June 30, 2025, up 33 bps compared to the same period in 2024. Interest expense on borrowings decreased by $238,000, or 77.8%, during the three months ended June 30, 2025 compared to the same period in 2024 mainly due to the payoff of an advance under the Bank Term Funding Program (“BTFP”) during the fourth quarter of 2024.
Previous wording
Net Interest Income. Net interest income was $2.4 million for the three months ended March 31, 2025, up $272,000, or 13.0%, compared to the same period in 2024. Our interest rate spread was 2.98% and 2.25% for the three months ended March 31, 2025 and 2024, respectively. Our net interest margin was 3.89% and 3.12% for the three months ended March 31, 2025 and 2024, respectively. The increase in net interest margin and net interest income over the comparable periods was largely the result of loan growth during the last nine months of 2024.
Current wording
Net Interest Income. Net interest income was $2.5 million for the three months ended June 30, 2025, up $20,000, or 0.8%, compared to the same period in 2024. Our interest rate spread was 3.07% and 2.85% for the three months ended June 30, 2025 and 2024, respectively. Our net interest margin was 3.98% and 3.72% for the three months ended June 30, 2025 and 2024, respectively. The increase in net interest margin over the comparable periods was largely the result of loan growth during the last nine months of 2024 and the payoff of our BTFP advance.
Previous wording
Provision for Credit Losses. The total provision for credit losses on loans and unfunded commitments was zero for the three months ended March 31, 2025, compared to $95,000 for the same period in 2024. In 2024, the provision for credit losses was largely attributable to growth in total construction loan commitments.
Current wording
Provision for Credit Losses. The total provision for credit losses on loans and unfunded commitments was zero for the three months ended June 30, 2025, compared to $99,000 for the same period in 2024. 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 residential loans.
Previous wording
General. For the three months ended March 31, 2025, the Company reported net income of $586,000, compared to a net loss of $4.7 million for the three months ended March 31, 2024. Net interest income was up $272,000, or 13.0%, for the three months ended March 31, 2025, compared to the same period in 2024. The provision for credit losses was zero for the three months ended March 31, 2025, compared to $95,000 for the same period in 2024. Non-interest income was $553,000 for the three months ended March 31, 2025, compared to a net loss of $5.2 million for the same period in 2024. 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. Non-interest expense for the three months ended March 31, 2025 was down $593,000, or 21.2%, compared to the same period in 2024, primarily due to expenses incurred during the 2024 period related to the Company’s upgrade to a new core processing system.
Current wording
General. For the six months ended June 30, 2025, the Company reported net income of $1.1 million, compared to a net loss of $4.2 million for the six months ended June 30, 2024. Net interest income increased $292,000, or 6.4%, for the six months ended June 30, 2025, compared to the same period in 2024. The provision for credit losses was zero for the six months ended June 30, 2025, compared to $194,000 for the same period in 2024. Non-interest income was $897,000 for the six months ended June 30, 2025, compared to a net loss of $4.8 million for the same period in 2024. 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. Non-interest expense for the six months ended June 30, 2025 was down $483,000, or 9.9%, compared to the same period in 2024, primarily due to expenses incurred during the 2024 period related to the Company’s upgrade to a new core processing system.
Previous wording
Non-interest Income*.*Non-interest income for the three months ended March 31, 2025 totaled $553,000, up $5.7 million compared to the same period in 2024. Non-interest income for the three months ended March 31, 2025 included insurance proceeds of $216,000 for fire and flood damages related to foreclosed properties. 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.
Current wording
Non-interest Income*.*Non-interest income for the six months ended June 30, 2025 totaled $897,000, up $5.7 million compared to the same period in 2024. Non-interest income for the six months ended June 30, 2025 included insurance proceeds of $216,000 for fire and flood damages related to foreclosed properties. During the 2024 period, the Company sold 50 available-for-sale investment securities for a total pre-tax loss of $5.5 million.
Previous wording
Non-interest Expense. Non-interest expense totaled $2.2 million for the three months ended March 31, 2025, down $593,000, or 21.2%, compared to the three months ended March 31, 2024. During the three months ended March 31, 2024, the Company upgraded to a new core processing system and incurred $560,000 of data conversion and other associated expenses.
Current wording
Non-interest Expense. Non-interest expense totaled $4.4 million for the six months ended June 30, 2025, down $483,000, or 9.9%, compared to the same period in 2024. Non-interest expense for the six months ended June 30, 2024 includes $539,000 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.
Previous wording
Data processing and communication expense totaled $182,000 for the three months ended March 31, 2025, down $612,000, or 77.1%, compared to the same period in 2024. Data processing and communication expense for the 2024 period included $550,000 of data conversion and other associated expenses due to the Company’s upgrade to a new core processing system.
Current wording
Data processing and communication expense totaled $358,000 for the six months ended June 30, 2025, down $574,000, or 61.6%, compared to the same period in 2024. Data processing and communication expense for the 2024 period included $517,000 of data conversion and other associated expenses due to the Company’s upgrade to a new core processing system.
Previous wording
ATM and debit card expense totaled $22,000 for the three months ended March 31, 2025, down $47,000, or 68.1%, compared to the same period in 2024 largely due to reductions in processing costs following the Company’s upgrade to a new core processing system.
Current wording
ATM and debit card expense totaled $51,000 for the six months ended June 30, 2025, down $49,000, or 49.0%, compared to the same period in 2024 largely due to reductions in processing costs following the Company’s upgrade to a new core processing system.
Previous wording
Foreclosed assets expense totaled $89,000 for the three months ended March 31, 2025, up $81,000 compared to the same period in 2024. Foreclosed assets expense for the three months ended March 31, 2025 included net losses of $88,000 on the sale of foreclosed properties.
Current wording
Foreclosed assets expense totaled $107,000 for the six months ended June 30, 2025, up $73,000 compared to the same period in 2024. Net write-downs and losses on the sale of foreclosed assets totaled $102,000 for the six months ended June 30, 2025, compared to $18,000 for the same period in 2024.
Previous wording
Income Tax Expense. The Company reported income tax expense of $134,000 for the three months ended March 31, 2025 compared to an income tax benefit of $1.3 million for the three months ended March 31, 2024. The change in income taxes over the comparable prior period was largely due to the loss on sales of investment securities in 2024.
Current wording
Income Tax Expense. The Company reported income tax expense of $247,000 for the six months ended June 30, 2025, compared to an income tax benefit of $1.1 million for the six months ended June 30, 2024. The change in income taxes over the comparable prior period was largely due to the loss on sales of investment securities in 2024.
Previous wording
Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. The most significant uses and sources of cash flows during the three months ended March 31, 2025 included:
Current wording
Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. The most significant uses and sources of cash flows during the six months ended June 30, 2025 included:
Previous wording
For a discussion of the impact of recent accounting pronouncements, see Note 1 of the notes to our financial statements.
Current wording
For a discussion of the impact of recent accounting pronouncements, see Note 1 of the notes to our consolidated financial statements.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Non-interest Expense. Non-interest expense totaled $2.2 million for the three months ended June 30, 2025, up $110,000, or 5.3%, compared to the three months ended June 30, 2024.
Current report — wording carried from elsewhere
Income Tax Expense. The Company reported income tax expense of $113,000 for the three months ended June 30, 2025, compared to $120,000 for the three months ended June 30, 2024. The change in income taxes over the comparable prior period was mainly due to the change in taxable earnings over the comparable periods.
Current report — wording carried from elsewhere
Comparison of Results of Operations for the Six Months Ended June 30, 2025 and 2024.
Current report — wording carried from elsewhere
Interest income on interest-earning cash and due from banks, included in other interest-earning assets in the preceding tables, decreased mainly due to the decline in the average balance of interest-earning cash, as well as a decline in the average rate earned. The average rate earned on other interest-earning assets was 4.44% for the six months ended June 30, 2025, down 79 bps compared to the same period in 2024.
Current report — wording carried from elsewhere
Net Interest Income. Net interest income was $4.8 million for the six months ended June 30, 2025, up $292,000, or 6.4%, compared to the same period in 2024. Our interest rate spread was 3.02% and 2.55% for the six months ended June 30, 2025 and 2024, respectively. Our net interest margin was 3.93% and 3.42% for the six months ended June 30, 2025 and 2024, respectively. The increase in net interest margin and net interest income over the comparable periods was primarily the result of loan growth during the last nine months of 2024 and the payoff of our BTFP advance.
Current report — wording carried from elsewhere
Provision for Credit Losses. The total provision for credit losses on loans and unfunded commitments was zero for the six months ended June 30, 2025, compared to $194,000 for the same period in 2024. 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 residential loans.