Marathon Bancorp Inc(US:MBBC)2025-05-14 11:30Financial Position - Total assets increased by $17.6 million, or 8.0%, to $236.8 million at March 31, 2025, from $219.2 million at June 30, 2024[166]. - Total deposits increased by $13.0 million, or 7.5%, to $186.0 million at March 31, 2025, from $173.0 million at June 30, 2024, primarily due to an increase in demand, NOW, and money market deposits[174]. - Total stockholders' equity increased by $659,000 due to net income of $374,000 and a decrease in accumulated other comprehensive loss of $176,000[176]. - Total non-performing assets remained at $1.4 million as of March 31, 2025, consistent with the figure from June 30, 2024[232]. - The total non-performing assets to total assets ratio was 0.59% as of March 31, 2025, down from 0.64% as of June 30, 2024[231]. Cash and Cash Equivalents - Cash and cash equivalents rose by $13.2 million, or 126.0%, while loans, net increased by $5.3 million, or 2.9%[166]. - Total cash and cash equivalents increased by $13.2 million, or 126.0%, to $23.7 million at March 31, 2025, from $10.5 million at June 30, 2024[169]. Loans and Credit Losses - Gross loans increased by $5.2 million, or 2.8%, to $190.4 million at March 31, 2025, from $185.2 million at June 30, 2024, driven by an increase in commercial real estate loans of $8.7 million, or 11.8%[171]. - The allowance for credit losses at March 31, 2025, reflects a hypothetical increase of $126,000, or 7.8%, based on changes in economic conditions[157]. - The allowance for credit losses was $1.6 million, or 0.85%, of loans outstanding at March 31, 2025, compared to $1.8 million, or 0.91%, at March 31, 2024[199]. - The provision for credit losses is assessed quarterly to maintain an adequate allowance for expected credit losses[145]. - The provision for credit losses for the three months ended March 31, 2025, was a recovery of $42,000 compared to a recovery of $122,000 for the same period in 2024[242]. - No loans were classified as substandard, doubtful, or loss in the company's loan portfolio as of March 31, 2025[233]. - Total loans past due 90 days or more were $0 as of March 31, 2025, indicating no significant delinquency in the loan portfolio[231]. Income and Expenses - Net income increased by $780,000, or 123.5%, to $148,000 for the three months ended March 31, 2025, compared to a net loss of $631,000 for the same period in 2024[186]. - Net income increased by $647,000, or 237.2%, to $374,000 for the nine months ended March 31, 2025, from a net loss of $273,000 for the same period in 2024, driven by a decrease in non-interest expenses and a slight increase in non-interest income[205]. - Non-interest income increased by $60,000, or 40.8%, to $207,000 for the three months ended March 31, 2025, from $147,000 for the same period in 2024[202]. - Non-interest expenses decreased by $991,000, or 39.5%, to $1.5 million for the three months ended March 31, 2025, compared to $2.5 million for the same period in 2024, primarily due to a significant reduction in foreclosed assets[203]. - Total non-interest expenses for the nine months ended March 31, 2025, were $4.6 million, a decrease of $929,000, or 16.8%, from $5.5 million for the same period in 2024[224]. Interest Income and Expense - Net interest income rose by $58,000, or 4.1%, to $1.5 million for the three months ended March 31, 2025, from $1.4 million for the same period in 2024[195]. - Interest income increased by $13,000, or 0.5%, to $2.3 million for the three months ended March 31, 2025, primarily due to increases in other interest income and loan interest income[187]. - Loan interest income increased by $4,000, or 0.2%, to $2.1 million for the three months ended March 31, 2025, despite a decrease in the average balance of the loan portfolio by $10.4 million, or 5.4%[188][190]. - Interest expense decreased by $45,000, or 4.9%, to $871,000 for the three months ended March 31, 2025, from $916,000 for the same period in 2024[192]. - Interest income decreased by $215,000, or 3.0%, to $6.9 million for the nine months ended March 31, 2025, primarily due to a decline in loan interest income and debt securities income[206]. - Interest expense decreased by $51,000, or 1.9%, to $2.6 million for the nine months ended March 31, 2025, due to a reduction in interest paid on borrowings[209]. Regulatory and Compliance - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring management to make estimates and assumptions that may materially impact reported amounts[149]. - The company intends to take advantage of the JOBS Act provisions, potentially delaying the adoption of new accounting standards[150]. - The bank was classified as "well capitalized" for regulatory capital purposes as of March 31, 2025[249]. Future Outlook - Forward-looking statements reflect management's beliefs and expectations but are subject to significant uncertainties and may change[139]. - The bank anticipates retaining a substantial portion of maturing time deposits, which may mitigate the need for additional borrowings[248].