Announcement • Jul 14
Catalyst Bancorp, Inc. (NasdaqCM:CLST) completed the acquisition of Lakeside Bancshares, Inc. (OTCPK:LKSB).
Catalyst Bancorp, Inc. (NasdaqCM:CLST) signed a definitive Agreement to acquire Lakeside Bancshares, Inc. (OTCPK:LKSB) for $41.1 million on April 7, 2026. As part of the acquisition, Catalyst Bancorp, Inc. will acquire all of the outstanding shares of Lakeside Bancshares, Inc. Under the terms of the acquisition, Catalyst Bancorp, Inc. will pay $19.58 in cash per share or $41.1 million in aggregate, subject to adjustment under certain circumstances. The Merger Agreement also provides that Lakeside Bancshares, Inc. will be merged with and into Catalyst Bancorp, Inc., with Catalyst Bancorp, Inc. surviving, and that Lakeside Bank will be merged with and into Catalyst Bank, with Catalyst Bank surviving. The transaction will be financed through own funds of Catalyst Bancorp, Inc. In case of termination of transaction, Lakeside Bancshares, Inc. will pay a termination fee of $1.65 million.
The transaction is subject to customary closing conditions, including regulatory approvals and Lakeside Bancshares, Inc shareholder approval. The deal has been unanimously approved by the board of directors of Lakeside Bancshares, Inc. and Catalyst Bancorp, Inc. As of June 26, 2026, the transaction has been approved by the shareholders of Lakeside Bancshares, Inc. The transaction is expected to close on or about July 14, 2026. Catalyst anticipates the transaction will be over 180% accretive to earnings per share once cost savings are fully realized and accretive to tangible book value per share within 3 years of closing. Following the Merger, Catalyst Bank's capital position is expected to remain strong with leverage and total risk-based capital ratios of approximately 10.4% and 15.4%, respectively. No additional capital will be needed by Catalyst to complete the transaction.
Jerad J. Comarda of Brean Capital, LLC acted as financial advisor to Catalyst Bancorp, Inc. Thomas E. Walker, Jr. of Jones Walker LLP acted as legal advisor to Catalyst Bancorp, Inc. Sheshunoff & Co. Investment Banking, LP acted as financial advisor and fairness opinion provider to Lakeside Bancshares, Inc. Chet A. Fenimore of Fenimore Kay Harrison LLP acted as legal advisor to Lakeside Bancshares, Inc.
Catalyst Bancorp, Inc. (NasdaqCM:CLST) completed the acquisition of Lakeside Bancshares, Inc. (OTCPK:LKSB) on July 14, 2026.
