Marathon Bancorp Inc(US:MBBC)2024-11-13 12:30Financial Position - Total assets decreased by $2.8 million, or 1.3%, to $216.5 million at September 30, 2024, from $219.2 million at June 30, 2024[144]. - Total deposits decreased by $815,000, or 0.5%, to $172.2 million at September 30, 2024, from $173.0 million at June 30, 2024[150]. - Total stockholders' equity increased by $292,000 due to net income of $175,000 and a decrease in accumulated other comprehensive loss[152]. - FHLB advances decreased by $3.0 million to $10.0 million at September 30, 2024, compared to $13.0 million at June 30, 2024[151]. - The company maintained a $77.3 million line of credit with the Federal Home Loan Bank of Chicago, with $10.0 million in borrowings outstanding[195]. - At September 30, 2024, the company was classified as "well capitalized" for regulatory capital purposes[199]. Loan and Credit Quality - Gross loans decreased by $7.5 million, or 4.0%, to $177.8 million at September 30, 2024, from $185.3 million at June 30, 2024[146]. - Commercial real estate loans decreased by $4.0 million, or 5.3%[146]. - Multi-family real estate loans decreased by $1.4 million, or 3.1%[146]. - Construction loans decreased by $1.3 million, with no construction loans held at September 30, 2024[146]. - The decrease in loans was primarily due to repayments exceeding new loan growth across various categories[146]. - The allowance for credit losses was $1.6 million, or 0.92% of loans outstanding at September 30, 2024, compared to $2.0 million, or 1.01% of loans outstanding at September 30, 2023[173]. - A recovery of credit losses of $155,000 was recorded for the three months ended September 30, 2024, compared to a provision for credit losses of $41,000 for the same period in 2023[172]. - The company’s evaluation of the allowance for credit losses is influenced by various qualitative factors, including economic conditions and historical loan losses[190]. Income and Expenses - Net income increased by $89,000, or 102.9%, to $175,000 for the three months ended September 30, 2024, compared to $86,000 for the same period in 2023[159]. - Loan interest income decreased by $105,000, or 4.8%, to $2.1 million for the three months ended September 30, 2024, due to an 8.8% decrease in the average balance of the loan portfolio[161]. - Interest income decreased by $93,000, or 3.9%, to $2.3 million for the three months ended September 30, 2024, compared to $2.4 million for the same period in 2023[160]. - Net interest income decreased by $143,000, or 9.2%, to $1.4 million for the three months ended September 30, 2024, from $1.6 million for the same period in 2023[168]. - Interest expense increased by $50,000, or 6.0%, to $892,000 for the three months ended September 30, 2024, due to higher interest paid on borrowings and deposits[165]. - Average rate paid on deposits increased by 27 basis points to 2.03% for the three months ended September 30, 2024, from 1.76% for the same period in 2023[166]. - Non-interest income decreased by $35,000 to $193,000 for the three months ended September 30, 2024, primarily due to a decrease in mortgage banking income related to higher mortgage rates[176]. - Total non-interest expenses increased by $90,000, or 6.2%, to $1.6 million for the three months ended September 30, 2024, compared to $1.5 million for the same period in 2023[179]. - Non-interest expenses related to salaries and employee benefits increased by $62,000, or 8.0%, to $835,000 for the three months ended September 30, 2024[178]. - Income tax expense decreased by $160,000 to $41,000 for the three months ended September 30, 2024, compared to $201,000 for the same period in 2023, due to changes in Wisconsin tax law[180]. Cash Flow and Liquidity - Net cash provided by operating activities for the three months ended September 30, 2024, was $945,000, compared to $367,000 for the same period in 2023, indicating a significant increase of 157%[197]. - Net cash provided by investing activities was $7.5 million for the three months ended September 30, 2024, compared to a cash outflow of $1.5 million in the same period of 2023[197]. - The company anticipates retaining a substantial portion of maturing time deposits totaling $46.3 million, which includes $4.4 million in brokered certificates of deposit[200]. - The company’s liquidity position is monitored daily, ensuring sufficient funds to meet current funding commitments[198]. Asset Quality - Total non-performing assets were $1.4 million at September 30, 2024, unchanged from June 30, 2024[185]. - The net interest rate spread decreased by eight basis points to 2.49% for the three months ended September 30, 2024, from 2.57% for the same period in 2023[168].