Form 4: Catalyst Bancorp CEO Sells Shares for Tax Obligations

Catalyst Bancorp's President and CEO, Joseph B. Zanco, disposed of 1,158 shares of common stock to cover tax obligations related to a stock benefit plan.

Summary

• Joseph B. Zanco, President and CEO of Catalyst Bancorp, Inc., reported a disposition of common stock on September 1, 2025.
• A total of 1,158 shares of common stock were disposed of at a price of $12.83 per share.
• This disposition was solely to meet tax obligations for a distribution from a stock benefit plan.
• Following the transaction, Mr. Zanco directly owns 32,870 shares of common stock.
• Indirect holdings include 15,000 shares by spouse, 2,458.9121 shares by 401(k) Plan, 6,474.1176 shares by ESOP, and 22,009 shares by IRA.
• Mr. Zanco also holds 52,900 stock options with an exercise price of $13.30, vesting 20% annually from September 1, 2023, and expiring September 1, 2032.
• Additionally, he holds 13,225 stock options with an exercise price of $12.08, vesting 20% annually from June 10, 2026, and expiring June 10, 2035.

Sentiment

Score: 5

Explanation: The transaction is a routine, non-discretionary sale to cover tax obligations, which is common for executives receiving equity compensation and does not reflect a change in management's view of the company's prospects.

Positives

• Joseph B. Zanco maintains significant direct and indirect beneficial ownership of common stock (32,870 direct, 45,941.0297 indirect), indicating strong alignment with shareholder interests.
• Substantial stock option holdings (66,125 options) provide further incentive for long-term company performance and value creation.

Negatives

• The disposition of 1,158 shares, even for tax purposes, results in a minor reduction of the CEO's direct equity stake.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders: The disposition of 1,158 shares for tax purposes is a routine event and does not signal a lack of confidence from the CEO. Joseph B. Zanco maintains substantial direct and indirect beneficial ownership, aligning his interests with long-term shareholder value.

Key Dates

Recommendation

The filing details a routine, non-discretionary sale of a small portion of the CEO's holdings to cover tax obligations, which is a common occurrence for executives. It does not indicate a change in the company's fundamentals or management's long-term outlook. The CEO retains substantial direct and indirect equity and significant stock options, maintaining strong alignment with shareholder interests. Therefore, the filing itself does not warrant a change in investment recommendation.

Keywords

Catalyst Bancorp, CLST, Joseph B. Zanco, Insider Trading, Form 4, Stock Sale, CEO, Beneficial Ownership, Stock Options, Tax Obligation