Marathon Bancorp Inc(MBBC) - 2023 Q2 - Quarterly Report

Financial Position - Total assets increased by $16.2 million, or 7.4%, to $236.2 million at December 31, 2022, from $220.0 million at June 30, 2022[138]. - Total deposits increased by $14.9 million, or 7.9%, to $203.0 million at December 31, 2022, from $188.1 million at June 30, 2022[142]. - Total stockholders' equity increased by $477,000, or 1.6%, to $31.2 million at December 31, 2022, from $30.7 million at June 30, 2022[143]. - The allowance for loan losses was $2.1 million at December 31, 2022, down from $2.2 million at December 31, 2021, with the allowance to total loans ratio at 1.06%[182]. - The company had a line of credit of $82.6 million with the Federal Home Loan Bank of Chicago as of December 31, 2022, with no borrowings outstanding[209]. Cash Flow - Net cash provided by operating activities was $962,000 for the six months ended December 31, 2022, compared to $206,000 for the same period in 2021[211]. - Net cash used in investing activities was $4.8 million for the six months ended December 31, 2022, down from $17.8 million in 2021[211]. - Net cash provided by financing activities increased to $14.8 million for the six months ended December 31, 2022, compared to a cash outflow of $1.2 million in 2021[211]. Loan Performance - Net loans increased by $7.0 million, or 3.8%, to $192.6 million at December 31, 2022, driven by a $5.0 million increase in commercial real estate loans[141]. - Non-performing assets decreased to $55,000, or 0.02% of total assets, at December 31, 2022, compared to $115,000, or 0.05% of total assets, at June 30, 2022[182]. - Total non-accrual loans decreased from $64,000 at June 30, 2022, to $55,000 at December 31, 2022, representing a decline of 14.06%[196]. - The total classified loans remained at $0 for both December 31, 2022, and June 30, 2022, indicating no classified loans during this period[198]. - Special mention loans increased slightly from $1,389,000 at June 30, 2022, to $1,471,000 at December 31, 2022, an increase of 5.89%[198]. Income and Expenses - Net income for the three months ended December 31, 2022, was $301,000, an increase of $16,000, or 5.9%, from $285,000 for the same period in 2021[152]. - Net interest income for the six months ended December 31, 2022, was $3,403,000, compared to $3,143,000 for the same period in 2021[148]. - Non-interest income decreased by $97,000 to $193,000 for the three months ended December 31, 2022, primarily due to a $117,000 decrease in mortgage banking income[167]. - Total non-interest expenses increased by $111,000, or 8.0%, to $1.5 million for the three months ended December 31, 2022, compared to $1.4 million for the same period in 2021[169]. - Total non-interest expenses increased by $158,000, or 5.7%, to $2.9 million for the six months ended December 31, 2022, compared to $2.8 million for the same period in 2021[187]. Interest Income and Expense - Interest income increased by $543,000, or 31.9%, to $2.2 million for the three months ended December 31, 2022, compared to $1.7 million for the same period in 2021[153]. - Loan interest income rose by $411,000, or 25.6%, to $2.0 million for the three months ended December 31, 2022, driven by a 30.3% increase in the average balance of the loan portfolio[154]. - Interest expense increased by $326,000, or 143.0%, to $555,000 for the three months ended December 31, 2022, primarily due to a $300,000 increase in interest paid on deposits[158]. - Interest expense for the six months ended December 31, 2022, increased by $407,000, or 87.8%, to $870,000 from $463,000 for the same period in 2021[176]. - Interest expense on deposits increased by $373,000, or 81.9%, to $831,000 for the six months ended December 31, 2022, compared to $457,000 for the same period in 2021[177]. Economic Outlook - The company anticipates potential impacts from inflation and changes in interest rates on margins and loan origination levels[119]. - The primary impact of inflation on operations is reflected in increased operating costs, with interest rates having a more significant impact on performance[219]. - The company monitors its liquidity position daily and expects sufficient funds to meet current funding commitments[212]. Regulatory and Compliance - Marathon Bank was classified as "well capitalized" for regulatory capital purposes as of December 31, 2022[213]. - The allowance for loan losses allocated to commercial real estate was $1,285,009, representing 62.4% of the total allowance at December 31, 2022[208].