8-K/A: Catalyst Bancorp Finalizes Auditor Change, Appoints HORNE LLP for 2025

Catalyst Bancorp, Inc. formally engaged HORNE LLP as its independent auditor for the fiscal year ending December 31, 2025, following the completion of Castaing, Hussey & Lolan, LLC's audit services for 2024.

Summary

• Catalyst Bancorp, Inc. has officially engaged HORNE LLP as their independent registered public accounting firm for the fiscal year ending December 31, 2025.
• This decision follows the completion of audit services by Castaing, Hussey & Lolan, LLC (CHL) for the year ending December 31, 2024, and the filing of the company's 2024 Annual Report on Form 10-K on March 28, 2025.
• CHL's reports on the company's consolidated financial statements for the fiscal years ended December 31, 2024 and 2023, did not contain any adverse opinions, disclaimers, qualifications, or modifications regarding uncertainty, audit scope, or accounting principles.
• There were no disagreements between the Company and CHL on any matters of accounting principles, financial statement disclosure, or auditing scope or procedure during the fiscal years ended December 31, 2024 and 2023, and the subsequent interim period through March 28, 2025.
• Similarly, there were no reportable events during the same period.
• The company provided CHL with a copy of the disclosures and requested a letter stating their agreement with the statements, which CHL provided on April 2, 2025.
• Catalyst Bancorp did not consult with HORNE regarding the application of accounting principles or the type of audit opinion that might be rendered on the company's financial statements during the fiscal years ended December 31, 2024 and 2023 and the subsequent interim period through March 28, 2025.

Sentiment

Score: 7

Explanation: The document indicates a smooth transition of auditors with no apparent issues or disagreements. This suggests a stable and well-managed financial reporting environment, which is viewed positively.

Positives

• The transition to a new auditor, HORNE LLP, appears to be smooth and without any reported issues or disagreements with the previous auditor, CHL.
• CHL's audit reports for 2023 and 2024 contained no adverse opinions, disclaimers, or qualifications, indicating a clean audit history.
• CHL agreed with the statements made by Catalyst Bancorp regarding their services.

Future Outlook

The company will be audited by HORNE LLP for the fiscal year ending December 31, 2025.

Industry Context

The change in auditors is a routine event in the financial industry. Companies periodically review and change their auditors for various reasons, including regulatory requirements, cost considerations, or to gain a fresh perspective on their financial statements. The smooth transition and lack of disagreements suggest good corporate governance.

Comparison to Industry Standards

• Auditor changes are common in the banking industry.
• Many regional banks use firms like HORNE LLP for their audit services.
• The absence of disagreements with the previous auditor is a positive sign, aligning with industry best practices for auditor transitions.

Stakeholder Impact

• Shareholders can be reassured by the smooth transition of auditors and the absence of any reported issues.
• Employees involved in financial reporting can expect to work with a new audit team.
• The change in auditors is unlikely to have a significant impact on customers, suppliers, or creditors.

Key Dates

Keywords

HORNE LLP, Catalyst Bancorp, Auditor, Castaing, Hussey & Lolan, Accounting, Audit