8-K: Catalyst Bancorp Switches Auditors to BDO USA

Catalyst Bancorp, Inc. announced a change in its independent registered public accounting firm from HORNE LLP to BDO USA, P.C. following HORNE's integration into BDO.

Summary

• Catalyst Bancorp, Inc. (the "Company") changed its independent registered public accounting firm from HORNE LLP to BDO USA, P.C. (BDO).
• The change occurred because the partners and professional staff of HORNE LLP joined BDO USA, P.C. on October 31, 2025.
• HORNE LLP resigned as the Company's independent registered public accounting firm on October 31, 2025.
• The Company's Audit Committee approved the appointment of BDO USA, P.C. as the new independent registered public accounting firm on November 5, 2025.
• There were no disagreements between the Company and HORNE LLP on any matter of accounting principles, financial statement disclosure, or auditing scope or procedure during the period from March 28, 2025, through October 31, 2025.
• HORNE LLP did not advise the Company of any matters specified in Item 304(a)(1)(v) of Regulation S-K during the same period.
• Neither the Company nor anyone on its behalf consulted with BDO USA, P.C. regarding accounting principles, audit opinions, disagreements, or reportable events prior to BDO's engagement.

Sentiment

Score: 7

Explanation: The change in independent registered public accounting firm is a result of a merger between the previous firm and the new firm, with no reported disagreements or issues, indicating a smooth and routine transition. This is a neutral to slightly positive event as it suggests good corporate governance in managing the transition.

Positives

• The transition of the independent registered public accounting firm appears smooth, with no reported disagreements on accounting principles or practices between the Company and HORNE LLP.
• The change was a result of HORNE LLP's partners and staff joining BDO USA, P.C., indicating a planned integration rather than a dispute or performance issue.

Future Outlook

The filing does not contain specific forward-looking statements or guidance beyond the change in the independent registered public accounting firm.

Management Comments

• The Company provided HORNE LLP with a copy of this report on Form 8-K and requested a letter stating whether it agrees with the statements, which HORNE LLP subsequently provided.

Industry Context

Changes in independent registered public accounting firms are common in the financial industry, particularly when accounting firms merge or are acquired. This event reflects a standard corporate governance action following such an industry consolidation.

Corporate Governance

Stakeholder Impact

• Shareholders: The change ensures continued independent oversight of the Company's financial statements by a new, reputable accounting firm, maintaining confidence in financial reporting.
• Employees: No direct impact on employees is indicated by this administrative change.

Next Steps

• BDO USA, P.C. will now serve as the independent registered public accounting firm for Catalyst Bancorp, Inc. for the fiscal year ending December 31, 2025, and potentially beyond.

Key Dates

Recommendation

The filing details a routine change in the company's independent registered public accounting firm due to a merger of the previous firm. There are no reported disagreements or issues, suggesting a smooth transition. This administrative update does not provide new financial or operational information to warrant a change in investment thesis, thus a 'hold' recommendation is appropriate as it does not alter the fundamental outlook for the company.

Keywords

Catalyst Bancorp, CLST, Auditor Change, SEC Filing, 8-K, BDO USA, HORNE LLP, Accounting Firm, Corporate Governance