Form 4: Catalyst Bancorp CFO Sells Shares for Tax Obligation

Catalyst Bancorp's Chief Financial Officer, Jacques L.J. Bourque, reported a disposition of 131 common shares to cover tax obligations.

Summary

• Jacques L.J. Bourque, Chief Financial Officer of Catalyst Bancorp, Inc. (CLST), reported a transaction on September 1, 2025.
• The transaction involved the disposition of 131 shares of common stock at a price of $12.83 per share.
• This disposition was solely to meet tax obligations arising from a distribution from a stock benefit plan.
• Following the transaction, Mr. Bourque directly beneficially owns 3,597 shares of common stock, which includes 800 unvested shares from the 2022 Recognition and Retention Plan.
• Indirect beneficial ownership includes 687.9343 shares in the Catalyst Bank 401(k) Plan and 2,040.8886 shares in the ESOP.
• Mr. Bourque also indirectly holds 100 shares as UTMA Custodian for Quinn Bourque and 100 shares as UTMA Custodian for Levi Bourque.
• He holds 5,000 stock options with an exercise price of $13.3, vesting 20% annually from September 1, 2023, and expiring September 1, 2032.
• Additionally, he holds 4,000 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 sentiment is neutral. The transaction is a routine, non-discretionary disposition to cover tax obligations, which is a common occurrence for executives with equity compensation. It does not indicate a change in the executive's confidence or the company's prospects.

Positives

• The disposition of shares was for a non-discretionary tax obligation, not a voluntary sale, indicating continued confidence in the company.
• The Chief Financial Officer retains significant direct and indirect beneficial ownership in Catalyst Bancorp, including substantial stock options, aligning his interests with shareholders.

Negatives

• None identified, as the transaction is a routine tax-related disposition.

Future Outlook

The filing does not contain specific forward-looking statements or guidance beyond the vesting schedules and expiration dates of stock options.

Industry Context

This Form 4 filing is a routine disclosure of an insider transaction within the financial services industry, specifically for a bank holding company. Such tax-related dispositions are common for executives receiving equity compensation and do not typically reflect a change in the company's fundamental outlook or the executive's long-term commitment.

Stakeholder Impact

• Shareholders: The disposition is a small, tax-related sale and does not suggest a lack of confidence from the CFO, who retains significant equity holdings, thus maintaining alignment of interests.
• Employees: The filing details equity compensation plans (401k, ESOP, Recognition and Retention Plan) which are part of employee benefits, indicating ongoing programs for employee ownership and retention.

Key Dates

Recommendation

The filing details a routine, tax-related disposition of a small number of shares by the Chief Financial Officer. This type of transaction is common and does not typically signal a change in the company's fundamentals or the executive's long-term view. The CFO retains substantial direct and indirect equity holdings, including significant stock options, which suggests continued alignment with shareholder interests. Therefore, based solely on this Form 4, a 'hold' recommendation is appropriate as there is no new information to warrant a change in investment thesis.

Keywords

Catalyst Bancorp, CLST, Form 4, Insider Trading, Stock Disposition, Tax Obligation, Chief Financial Officer, Stock Options, Beneficial Ownership