Form 4: Catalyst Bancorp CFO Boosts Equity Holdings with New Stock and Option Grants

Catalyst Bancorp, Inc.'s Chief Financial Officer, Jacques L.J. Bourque, reported an increase in his beneficial ownership through new grants of common stock and stock options, aligning management interests with shareholders.

Summary

• Jacques L.J. Bourque, Chief Financial Officer of Catalyst Bancorp, Inc. (CLST), acquired 2,000 shares of common stock on June 10, 2025, as a grant under the Issuer's 2022 Recognition and Retention Plan and Trust Agreement.
• These 2,000 granted shares will vest at a rate of 20% per year, commencing on June 10, 2026.
• Mr. Bourque also acquired 4,000 stock options (Right to Buy) at an exercise price of $12.08 per share on June 10, 2025, which will vest at 20% per year starting June 10, 2026, and expire on June 10, 2035.
• Following these transactions, Mr. Bourque directly beneficially owns 3,728 shares of common stock, which includes 1,200 unvested shares from a prior grant.
• His indirect beneficial ownership includes 657.9489 shares via the Catalyst Bank 401(k) Plan and 2,040.8886 shares via the ESOP.
• Additionally, he indirectly holds 100 shares as UTMA Custodian for Quinn Bourque and 100 shares as UTMA Custodian for Levi Bourque.
• Mr. Bourque also holds 5,000 stock options from a previous grant with an exercise price of $13.3, which began vesting on September 1, 2023, and expire on September 1, 2032.

Sentiment

Score: 7

Explanation: The sentiment is positive as it indicates management's continued alignment with shareholder interests through equity grants. While not a major market-moving event, it reflects stable corporate governance and executive retention strategies.

Positives

• The grant of 2,000 shares of common stock and 4,000 stock options to the Chief Financial Officer aligns management's financial interests with those of the shareholders, promoting long-term value creation.
• Equity-based compensation plans, such as the 2022 Recognition and Retention Plan, are a common and effective way to incentivize key executives and retain talent.

Future Outlook

The document details future vesting schedules for both the newly granted common stock and stock options, indicating a long-term incentive structure for the Chief Financial Officer.

Industry Context

This Form 4 filing reflects a routine executive compensation event within the banking industry, where equity grants are a standard practice to align executive incentives with shareholder returns and ensure long-term commitment.

Related Party Transactions

• The reporting person holds 100 shares indirectly as UTMA Custodian for Quinn Bourque and 100 shares indirectly as UTMA Custodian for Levi Bourque, indicating beneficial ownership for family members.

Stakeholder Impact

• Shareholders: The equity grants to the CFO align his interests with those of shareholders, potentially leading to better long-term performance and value creation.
• Employees: The existence of a 401(k) Plan and ESOP (Employee Stock Ownership Plan) indicates broader employee participation in the company's equity, which can foster a sense of ownership and shared success.

Next Steps

• The newly granted 2,000 shares of common stock will commence vesting at 20% per year starting June 10, 2026.
• The newly granted 4,000 stock options will commence vesting at 20% per year starting June 10, 2026, and will expire on June 10, 2035.
• The previously granted 5,000 stock options will continue to vest at 20% per year, having commenced on September 1, 2023, and will expire on September 1, 2032.

Key Dates

Keywords

SEC Form 4, Insider Transaction, Beneficial Ownership, Stock Options, Equity Grant, Catalyst Bancorp, CLST, Chief Financial Officer, Executive Compensation, Vesting Schedule