Form 4: Catalyst Bancorp Director Craig LeBouef Reports Significant Equity and Option Grants

Catalyst Bancorp, Inc. Director Craig C. LeBouef has reported the acquisition of 1,058 shares of common stock and 2,645 stock options, alongside existing holdings, as part of the company's recognition and retention plan.

Summary

• Director Craig C. LeBouef acquired 1,058 shares of Catalyst Bancorp, Inc. common stock on June 10, 2025, as a grant with a price of $0.
• These 1,058 shares are part of the Issuer's 2022 Recognition and Retention Plan and Trust Agreement and will vest at a rate of 20% per year starting June 10, 2026.
• Following this transaction, Mr. LeBouef directly beneficially owns 24,522 shares of common stock. This total includes 5,080 unvested shares from a previous grant of 8,464 shares, which began vesting 20% annually on September 1, 2023.
• Mr. LeBouef also indirectly owns 10,000 shares of common stock through Craig C. LeBouef CPA LLC, where he is the sole managing member.
• Additionally, Mr. LeBouef was granted 2,645 stock options on June 10, 2025, with an exercise price of $12.08 and a price of $0 for the grant itself.
• These new options will vest at a rate of 20% per year commencing June 10, 2026, and have an expiration date of June 10, 2035.
• He also holds 21,160 stock options with an exercise price of $13.30, which began vesting 20% per year on September 1, 2023, and expire on September 1, 2032.

Sentiment

Score: 6

Explanation: The filing is neutral to slightly positive, indicating standard compensation practices aimed at retention and alignment of interests, without revealing any significant operational or financial news.

Positives

• Grant of shares and options to a director aligns management incentives with shareholder interests.
• The grants are part of a "Recognition and Retention Plan," indicating efforts to retain key personnel.
• The vesting schedules encourage long-term commitment from the director.

Negatives

• The shares and options were granted at a price of $0, meaning no direct cash outlay from the director for these specific acquisitions.
• The grants dilute existing shareholder equity, although the amount is relatively small in this specific transaction.

Future Outlook

This Form 4 filing does not contain forward-looking statements or guidance regarding the company's future financial performance or strategic direction, focusing solely on insider ownership changes.

Industry Context

This filing reflects a standard practice in the financial services industry where executive and director compensation often includes equity grants and stock options to align their interests with long-term shareholder value. Such grants are common for retaining key talent in competitive banking sectors.

Related Party Transactions

• The indirect ownership of 10,000 shares by Craig C. LeBouef CPA LLC, where the reporting person is the sole managing member, constitutes a related party holding.

Stakeholder Impact

• Shareholders: The grants represent a form of compensation that aligns the director's interests with long-term shareholder value, but also involve a minor dilution of existing shares.
• Employees: While not directly impacting all employees, the 'Recognition and Retention Plan' suggests a broader strategy for talent management within the company.

Key Dates

Recommendation

Keywords

Catalyst Bancorp, CLST, SEC Form 4, Insider Trading, Stock Grant, Stock Options, Director Compensation, Equity Compensation, Vesting Schedule, Craig C. LeBouef, Beneficial Ownership