Marathon Bancorp Inc(US:MBBC)2025-02-13 12:30Financial Position - Total assets decreased by $1.3 million, or 0.6%, to $217.9 million at December 31, 2024, from $219.2 million at June 30, 2024[162]. - Net loans decreased by $6.5 million, or 3.6%, contributing to the overall asset decline[162]. - Cash and cash equivalents increased by $5.7 million, or 54.4%, to $16.2 million at December 31, 2024, primarily due to a decrease in net loans[163]. - Total debt securities available for sale decreased by $364,000, or 5.5%, from $6.6 million at June 30, 2024, to $6.2 million at December 31, 2024[164]. - The decrease in debt securities was primarily related to municipal bond calls of $240,000[164]. - Gross loans decreased by $6.7 million, or 3.6%, to $178.6 million at December 31, 2024, from $185.3 million at June 30, 2024[165]. - Total deposits increased slightly by $436,000, or 0.3%, to $173.4 million at December 31, 2024, from $173.0 million at June 30, 2024[169]. - FHLB advances decreased by $3.0 million to $10.0 million at December 31, 2024, compared to $13.0 million at June 30, 2024[170]. - Total stockholders' equity increased by $390,000 due to net income of $226,000 and a decrease in accumulated other comprehensive loss of $118,000[171]. Income and Expenses - Net income for the three months ended December 31, 2024, was $51,000, a decrease of $221,000, or 81.2%, from $272,000 in the same period of 2023[180]. - Interest income decreased by $135,000, or 5.6%, to $2.3 million for the three months ended December 31, 2024, compared to $2.4 million for the same period in 2023[181]. - Loan interest income decreased by $152,000, or 6.9%, to $2.0 million for the three months ended December 31, 2024, due to a decrease in the average balance of the loan portfolio[182]. - Net interest income decreased by $80,000, or 5.4%, to $1.4 million for the three months ended December 31, 2024[189]. - Non-interest income increased by $3,000 to $180,000 for the three months ended December 31, 2024, from $177,000 in the same period of 2023[196]. - Total non-interest expenses were $1.5 million for the three months ended December 31, 2024, compared to $1.6 million for the same period in 2023, a decrease of $28,000, or 1.8%[197]. - Non-interest income declined by $31,000, or 7.7%, to $374,000 for the six months ended December 31, 2024, primarily due to a decrease in mortgage banking income[216]. - Total non-interest expenses increased by $62,000, or 2.1%, to $3.1 million for the six months ended December 31, 2024, driven by higher salaries and occupancy costs[219]. Credit Losses and Allowances - The allowance for credit losses (ACL) at December 31, 2024, represents the company's current estimate of lifetime credit losses expected from its loan portfolio[152]. - The company assesses the allowance for credit losses on a quarterly basis to maintain a reasonable level to absorb expected credit losses[144]. - The allowance for credit losses was $1.7 million, or 0.92%, of loans outstanding at December 31, 2024[193]. - Provision for credit losses was recorded at $8,000 for the three months ended December 31, 2024, compared to a recovery of $135,000 in the same period of 2023[192]. - The allowance for credit losses was $1.7 million, or 0.92% of loans outstanding at December 31, 2024, down from $1.9 million, or 0.96%, at December 31, 2023[213]. - The provision for credit losses for the three months ended December 31, 2024, was $8,000, compared to a recovery of $135,000 in the same period of the previous year[237]. - The total charge-offs for the period were $0, with total recoveries of $1,000, leading to net recoveries of $1,000[237]. - The company foreclosed on collateral supporting a construction loan valued at $2.1 million, resulting in a provision adjustment[226]. Cash Flow and Capital - Net cash provided by operating activities for the six months ended December 31, 2024, was $1.1 million, an increase from $990,000 for the same period in 2023[242]. - Net cash provided by investing activities increased to $7.2 million for the six months ended December 31, 2024, compared to $1.3 million in 2023[242]. - Net cash used in financing activities decreased to $2.6 million for the six months ended December 31, 2024, down from $5.9 million in 2023[242]. - The bank was classified as "well capitalized" for regulatory capital purposes as of December 31, 2024[244]. - The bank anticipates retaining a substantial portion of maturing time deposits, which may mitigate the need for additional borrowings[243]. Loan Portfolio and Performance - Average outstanding loans for the three months ended December 31, 2024, were $175.7 million with a yield of 4.68%[173]. - Total interest-earning assets decreased to $197.7 million with a net interest margin of 2.85% for the three months ended December 31, 2024[173]. - The net interest rate spread for the six months ended December 31, 2024, was 2.47%[176]. - The average balance of the loan portfolio decreased by $19.8 million, or 10.2%, to $175.7 million for the three months ended December 31, 2024[184]. - The average yield on loans increased by 19 basis points to 4.65% for the six months ended December 31, 2024, compared to 4.46% for the same period in 2023[203]. - The average balance of deposits decreased by $16.9 million, or 10.0%, to $151.6 million for the six months ended December 31, 2024[206]. - Total non-performing assets amounted to $1.4 million as of December 31, 2024, consistent with the previous period[226]. - The total non-performing assets to total assets ratio was 0.64% for both December 31, 2024, and June 30, 2024[226]. - There were no loans classified as substandard, doubtful, or loss in the company's loan portfolio as of December 31, 2024[229]. - The company expects a small recovery related to a settlement of litigation concerning a property in the quarter ending March 31, 2025[228].