Marathon Bancorp Inc(US:MBBC)2024-05-13 20:31Financial Position - Total assets decreased by $13.0 million, or 5.4%, to $225.8 million at March 31, 2024, from $238.8 million at June 30, 2023[173]. - Cash and cash equivalents decreased by $3.7 million, or 31.4%, to $8.1 million at March 31, 2024, primarily due to a decrease in total deposits of $27.6 million[174]. - Total debt securities available for sale decreased by $2.0 million, or 22.4%, to $6.9 million at March 31, 2024, primarily due to the call of $1.5 million in corporate bonds[175]. - Total deposits decreased by $27.6 million, or 14.0%, to $169.7 million at March 31, 2024, from $197.3 million at June 30, 2023, with certificates of deposit decreasing by $17.7 million, or 21.1%[178]. - Total stockholders' equity remained unchanged at $31.3 million from June 30, 2023, to March 31, 2024[180]. Loan Performance - Net loans decreased by $5.8 million, or 2.9%, at March 31, 2024[173]. - Gross loans decreased by $6.2 million, or 3.1%, to $193.7 million at March 31, 2024, from $199.9 million at June 30, 2023, with consumer loans down by $1.3 million, or 44.3%[176]. - The allowance for credit losses was $1.8 million, or 0.91%, of loans outstanding at March 31, 2024, down from $2.1 million, or 1.01%, at March 31, 2023[199]. - The total non-performing loans to total loans ratio is 0.03% as of March 31, 2024, indicating a stable credit quality compared to previous periods[230]. - The allowance to non-performing loans ratio is 3,160.71% as of March 31, 2024, highlighting a strong coverage of non-performing loans[240]. Income and Expenses - Net loss for the three months ended March 31, 2024 was $631,000, a decrease of $997,000, or 272.6%, from net income of $366,000 for the same period in 2023[190]. - Interest income increased by $35,000, or 1.5%, to $2.3 million for the three months ended March 31, 2024, primarily due to an increase in loan interest income of $70,000[191]. - Interest expense increased by $279,000, or 43.9%, to $916,000, driven by a $73,000 increase in interest paid on deposits and a $206,000 increase in interest paid on borrowings[193]. - Non-interest income decreased by $112,000 to $147,000, primarily due to a lack of gains from life insurance death benefits compared to $88,000 in the prior year[202]. - Total non-interest expenses increased by $1,023,000, or 68.9%, to $2.5 million, largely due to a $970,000 increase in expenses associated with foreclosed assets[203]. Credit Losses and Provisions - The recovery of credit losses was $216,000 for the nine months ended March 31, 2024, compared to no provision for credit losses in the same period of 2023[215]. - The provision for credit losses for the three months ended March 31, 2024, was a recovery of $122,000, contrasting with no provision in the same period last year[240]. - The allowance for credit losses allocated to real estate loans is not specified, but the overall allowance reflects management's assessment of potential future losses[241]. Cash Flow and Financing - Net cash provided by operating activities for the nine months ended March 31, 2024, was $188,000, a significant decrease from $1.3 million for the same period in 2023[245]. - Net cash used in financing activities was $12.6 million for the nine months ended March 31, 2024, compared to $16.6 million provided in the same period of 2023[245]. - At March 31, 2024, the bank had a $82.0 million line of credit with the Federal Home Loan Bank of Chicago, with $23.0 million in borrowings outstanding[243]. Regulatory and Economic Factors - The company is subject to various risks including changes in economic conditions and competition among financial institutions[151]. - The effective tax rate increased to 24.3% for the three months ended March 31, 2024, compared to 13.7% for the same period in 2023[204]. - The impact of inflation on operations is primarily reflected in increased operating costs, with interest rates having a more significant effect on performance[252].