Catalyst Bancorp, Inc. (CLST) approved a sixth share repurchase plan that authorizes the company to buy back up to 205,000 shares, or roughly 5 % of its outstanding common stock. The plan follows a series of prior buybacks that began in January 2023 and reflects the bank’s ongoing commitment to returning capital to shareholders while preserving sufficient liquidity for growth and regulatory requirements.
As of November 18 2025, Catalyst had already repurchased 1,180,817 shares, representing about 22 % of the original shares issued. The average cost per share for these repurchases was $11.97, indicating that the bank has been able to acquire shares at a price that is close to its current market value, thereby maximizing shareholder value without overpaying. The cumulative repurchase volume demonstrates a disciplined approach to capital allocation, with each plan building on the previous one to gradually reduce the share count and potentially lift earnings per share.
Financially, Catalyst reported net income of $489,000 and diluted earnings per share of $0.13 for the third quarter of 2025. Total assets stood at $283.8 million as of September 30 2025, showing modest growth from prior periods and underscoring the bank’s solid balance‑sheet foundation. The ability to fund a new buyback plan is supported by this healthy asset base and the bank’s consistent profitability, which provide the cash flow necessary to execute the repurchase without compromising operational liquidity.
Management’s rationale for the new plan centers on capital efficiency and shareholder value creation. By reducing the number of shares outstanding, Catalyst can increase earnings per share and potentially improve its return‑on‑equity metrics. The plan also signals confidence in the bank’s financial health and its view that the stock is undervalued, offering a strategic tool to support the share price and reward investors. CEO Joe Zanco has emphasized the bank’s focus on serving local businesses and improving operational efficiency, positioning the buyback as part of a broader strategy to strengthen the bank’s competitive stance in the Acadiana region.
In the broader banking context, Catalyst operates as a regional bank with a community‑focused model. The announcement comes amid a routine change in its independent registered public accounting firm, with HORNE LLP transitioning to BDO USA, P.C., a standard governance update that does not materially affect the bank’s operations. The buyback plan adds to the bank’s portfolio of capital‑allocation initiatives, reinforcing its commitment to prudent financial management in a competitive market.
The new share repurchase plan enhances Catalyst’s flexibility to return capital to shareholders while maintaining the liquidity needed for ongoing operations and potential future opportunities. With a clear cap of 205,000 shares, the bank can execute the buyback at a pace that aligns with its cash‑flow profile, ensuring that the program supports long‑term shareholder value without jeopardizing regulatory capital requirements.
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