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Catalyst Bancorp selects HORNE LLP as new accountant for 2025

Published 27/11/2024, 05:44 am
CLST
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Catalyst Bancorp, Inc., a federally chartered savings institution, announced a change in its independent registered public accounting firm. The company's board, through its Audit Committee, has approved the engagement of HORNE LLP for the fiscal year ending December 31, 2025. This decision is pending HORNE's standard client acceptance procedures and the execution of an engagement letter. Castaing, Hussey & Lolan, LLC (CHL), the current accountant, will continue to serve for the fiscal year ending December 31, 2024.

The company's financial statements for the years ended December 31, 2023, and 2022, audited by CHL, did not contain adverse opinions or disclaimers, and were not qualified or modified regarding accounting principles or audit scope. Additionally, there were no disagreements or "reportable events" as defined by SEC regulations between Catalyst Bancorp and CHL during those fiscal years and the subsequent interim period through November 20, 2024.

In other recent news, Catalyst Bancorp, Inc. has announced a new share repurchase initiative, named the November 2024 Repurchase Plan. This plan authorizes the company to buy back up to 215,000 shares, approximately 5% of its outstanding common stock. This move follows the bank's first repurchase plan in January 2023, during which it acquired nearly 18% of its initially issued common shares.

The company has also reported significant customer and record loan growth in the third quarter of 2024, amounting to $21 million. Catalyst Bancorp's President and CEO, Joe Zanco, highlighted the bank's expansion of its branch network and technological upgrades, which have led to a reduction in non-interest expenses by over $200,000 annually.

InvestingPro Insights

As Catalyst Bancorp, Inc. (CLST) transitions to a new independent registered public accounting firm, investors may find additional context from recent financial metrics and expert insights valuable. According to InvestingPro data, CLST's market capitalization stands at $52.05 million, with the stock trading near its 52-week high at 97.19% of that peak. This suggests investor confidence despite challenging financial indicators.

InvestingPro Tips highlight that management has been aggressively buying back shares, which could be interpreted as a sign of confidence in the company's future prospects. However, it's important to note that CLST suffers from weak gross profit margins and has not been profitable over the last twelve months. These factors may be relevant considerations as the company moves forward with its new auditing relationship.

The company's revenue for the last twelve months as of Q3 2024 was $4.95 million, with a concerning revenue growth decline of -44.26% over the same period. On a more positive note, quarterly revenue growth for Q3 2024 showed improvement at 24.89%, which could indicate a potential turnaround in the company's financial performance.

For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into Catalyst Bancorp's financial health and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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