Opelousas, Louisiana – Catalyst Bancorp, Inc. (Nasdaq: “CLST”) (“Catalyst”), the parent company for Catalyst Bank (www.catalystbank.com), and Lakeside Bancshares, Inc. (OTC Markets: “LKSB”) (“Lakeside”), the parent company for Lakeside Bank, recently announced the signing of a definitive Agreement and Plan of Share Exchange and Merger (the “Merger Agreement”) under which Catalyst will acquire Lakeside in an all-cash transaction. The Merger Agreement also provides that Lakeside will be merged with and into Catalyst, with Catalyst surviving, and that Lakeside Bank will be merged with and into Catalyst Bank, with Catalyst Bank surviving. Once the transaction closes, Lakeside’s shareholders (other than dissenting shares) will receive $19.58 per share in cash, or $41.1 million in aggregate, subject to adjustment under certain circumstances.
Brean Capital is serving as financial advisor to Catalyst.
“Lakeside Bank has built a tremendous reputation across Southwest Louisiana,” said Joe Zanco, President and CEO of Catalyst Bank. “Bringing our organizations together allows us to build on that strong foundation. We look forward to working with the team at Lakeside to enhance our collective investment in growing the region’s economy.”
“This transaction more than doubles the size of our company,” continued Mr. Zanco, “and significantly enhances our earnings and future growth potential. Our leadership team’s merger experience positions us to immediately play offense in adding customers in Southwest Louisiana.”
Lakeside operates four (4) branch locations in Calcasieu Parish. As of December 31, 2025, Lakeside had assets of $385.7 million, $236.3 million in loans and $287.5 million in deposits. Based on December 31, 2025 historical data, the combined company will have assets of approximately $627.3 million, $399.9 million in loans and $470.0 million in deposits.
“Our decision to join forces with Catalyst Bank comes from a place of strength and long-term vision,” said Roy Raftery, President and CEO of Lakeside Bank. “This partnership allows us to preserve the relationships and community focus that define our bank while gaining the scale, technology, and resources needed to serve our customers even better in the years ahead.”
The Merger Agreement was unanimously approved by the boards of directors of both companies. The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions, including regulatory approvals and Lakeside shareholder approval.
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.
Catalyst Bancorp, Inc. (Nasdaq: CLST) is a Louisiana corporation and registered bank holding company for Catalyst Bank, its wholly-owned subsidiary, with $282.9 million in assets at December 31, 2025. Catalyst Bank, formerly St. Landry Homestead Federal Savings Bank, has been in operation in the Acadiana region of south-central Louisiana since 1922. With a focus on fueling business and improving lives throughout the region, Catalyst Bank offers commercial and retail banking products through our six full-service branches located in Carencro, Eunice, Lafayette, Opelousas, and Port Barre. To learn more about Catalyst Bancorp and Catalyst Bank, visit www.catalystbank.com, or the website of the Securities and Exchange Commission, www.sec.gov.
Lakeside Bancshares, Inc. is a Louisiana corporation and registered bank holding company for Lakeside Bank, its wholly-owned subsidiary. Lakeside Bank is a Louisiana banking corporation and began operations on July 10, 2010 as a full-service financial institution. In February 2018, Lakeside Bancshares, Inc. (OTC Markets: “LKSB”) was formed for the purpose of becoming the holding company of Lakeside Bank by a stock exchange.
Brean Capital’s Investment Banking Group is dedicated to helping its clients achieve their strategic and financial goals. For more than 50 years, the Firm has specialized in providing capital raising, M&A and financial advisory services to middle market businesses. Throughout its history, Brean Capital has established a track record of providing its clients with deep market knowledge, commitment and experience to ensure a successful transaction. For more information, please visit: www.breancapital.com/InvestmentBanking.