Marathon Bancorp Inc(MBBC) - 2026 Q2 - Quarterly Report

Financial Position - Total assets increased by $9.2 million, or 3.8%, to $248.0 million at December 31, 2025, from $238.8 million at June 30, 2025[168]. - Total stockholders' equity increased by $1.2 million to $46.9 million at December 31, 2025, primarily due to net income of $946,000[176]. - Total deposits increased by $3.1 million, or 1.8%, to $178.4 million at December 31, 2025, mainly due to a $6.0 million increase in demand, NOW, and money market deposits, or 12.6%[175]. - FHLB advances increased by $4.0 million to $19.0 million at December 31, 2025, due to new borrowings during the six months ended December 31, 2025[176]. - Total debt securities available for sale decreased by $1.1 million, or 21.9%, to $4.1 million at December 31, 2025, due to maturing or called securities[170]. Loan Portfolio - Loans increased by $11.1 million, or 5.5%, contributing to the overall asset growth[168]. - Gross loans increased by $11.1 million, or 5.5%, to $213.7 million at December 31, 2025, driven by a $7.7 million increase in one-to-four-family residential loans, or 13.6%, and a $3.9 million increase in multi-family real estate loans, or 8.1%[171]. - The allowance for credit losses at December 31, 2025, reflects the company's estimate of lifetime credit losses expected from its loan portfolio[157]. - The allowance for credit losses was $1.7 million, or 0.80% of loans outstanding at December 31, 2025, compared to $1.7 million, or 0.92%, at December 31, 2024[196]. - The allowance for credit losses allocated to one-to-four-family residential loans was $1,100,000 at December 31, 2025, accounting for 64.6% of the total allowance[236]. Income and Expenses - Net income for the three months ended December 31, 2025, was $501,000, an increase of $450,000, or 880.7%, from $51,000 for the same period in 2024[186]. - Net interest income for the six months ended December 31, 2025, was $4.011 million, with a net interest rate spread of 3.11%[182]. - Interest income increased by $683,000, or 35.3%, to $3.0 million for the three months ended December 31, 2025, compared to $2.3 million for the same period in 2024[187]. - Non-interest income slightly increased by $10,000 to $190,000 for the three months ended December 31, 2025, from $180,000 for the same period in 2024[199]. - Total non-interest expenses were $1.6 million for the three months ended December 31, 2025, an increase of $100,000, or 6.6%, from $1.5 million for the same period in 2024[201]. Credit Losses and Provisions - The provision for credit losses for the three months ended December 31, 2025, was $33,000, compared to $8,000 for the same period in 2024, reflecting an increase in the loan portfolio[195]. - A hypothetical change in the allowance for credit losses could result in an increase of $182,000, or 10.9%, based on adjustments to economic parameters[160]. - The company assesses the allowance for credit losses quarterly, considering historical loan loss experience and current economic conditions[150]. - The company may adjust its allowance for credit losses based on regulatory reviews and changes in economic conditions[162]. - The total non-performing loans to total loans ratio rose to 0.09% at December 31, 2025, up from 0.03% at June 30, 2025[224]. Cash Flow and Liquidity - Net cash provided by operating activities was $1.9 million for the six months ended December 31, 2025, compared to $1.1 million for the same period in 2024[239]. - Net cash used in investing activities was $9.8 million for the six months ended December 31, 2025, compared to $7.2 million provided in 2024[239]. - Net cash provided by financing activities was $7.1 million for the six months ended December 31, 2025, compared to $2.6 million used in 2024[239]. - The company monitors its liquidity position daily and expects to meet current funding commitments[240]. - The primary impact of inflation on operations is reflected in increased operating costs, with interest rates having a more significant impact on performance[245]. Regulatory and Compliance - Marathon Bank was classified as "well capitalized" for regulatory capital purposes as of December 31, 2025[241]. - The company intends to leverage the benefits of the JOBS Act, potentially delaying the adoption of new accounting standards[155]. - The company enters into various contractual obligations, including data processing services and operating leases[243]. - The company anticipates retaining a substantial portion of maturing time deposits and may utilize additional borrowings if necessary[240].