Catalyst Bancorp in Opelousas, La., reported a quarterly loss after selling securities.
The $282 million-asset company lost $4.7 million in the first quarter, which included a $5.5 million loss from selling underwater securities. The company said it plans to reinvest the $42.6 million of proceeds from the sales into new loans, higher-yielding securities, share repurchases and debt repayment.
Catalyst also incurred $560,000 of data conversion and other expenses tied to an upgrade to a new core processing system.
“Our net loss resulted from two strategic moves that significantly enhance our growth prospects,” Joe Zanco, Catalyst’s president and CEO, said in a press release.