Catalyst Bancorp, Inc. Debt Disclosure
NOTE 7. BORROWED FUNDS
Borrowed funds and the weighted-average contractual interest rate on borrowings at December 31, 2025 and 2024 are summarized as follows:
December 31, | |||||||||||||
2025 | 2024 | ||||||||||||
(Dollars in thousands) | | | Rate | Amount | | Rate | Amount | ||||||
Advances from Federal Home Loan Bank of Dallas |
|
| 2.49 | % | $ | 15,000 |
| 0.93 | % | $ | 10,000 | ||
Debt modification discount on FHLB Advances |
|
|
| (268) |
|
| (442) | ||||||
Total borrowings | $ | 14,732 | $ | 9,558 | |||||||||
In December of 2020, the Bank restructured $10.0 million of its long-term borrowings from the FHLB. The debt was restructured to longer maturities at current interest rates and accounted for as modification or exchange of debt. A fee for the restructuring of $1.2 million was deferred and amortized as an adjustment to interest expense using the interest method over the life of the restructured borrowings.
Interest payments are due monthly for FHLB advances. A schedule of maturities for borrowings outstanding at December 31, 2025 are as follows:
(Dollars in thousands) | | Amount | |
Amounts maturing in: | |||
2026 | $ | 8,000 | |
2027 | 3,000 | ||
2028 | 4,000 | ||
2029 | - | ||
2030 |
| - | |
Total | $ | 15,000 | |
At December 31, 2025 and 2024, the Company had $49.7 million and $45.7 million, respectively, in available borrowing capacity with the FHLB. Borrowings from the FHLB are secured though a blanket floating lien on real estate loans. Refer to Note 4 for more detail on loans pledged to the FHLB. The Company has a $20.0 million custodial letter of credit outstanding from the FHLB as of December 31, 2025, which is included in the calculation of our available capacity with the FHLB. The Company can allocate portions of this letter of credit to collateralize certain deposit balances in excess of the FDIC’s insurance limit as an alternative to pledging investment securities for the same purpose. At December 31, 2025, the Company used $20.0 million of the FHLB custodial letter of credit to collateralize public fund deposits.
Other available funding includes an Unsecured Federal Funds Master Purchase Agreement with First National Bankers Bank for $17.8 million. At December 31, 2025 and 2024, the credit facility was unused.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 30, 2023 | |
| 2021 | Mar 29, 2022 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.