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What changed in Marathon Bancorp, Inc. /MD/'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Marathon Bancorp, Inc. /MD/'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+256 added−259 removedSource: 10-K (2025-09-26) vs 10-K (2024-09-26)

Top changes in Marathon Bancorp, Inc. /MD/'s 2025 10-K

256 paragraphs added · 259 removed · 209 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

135 edited+18 added−23 removed217 unchanged
Biggest changeThis loan was performing in accordance with its repayment terms at June 30, 2024. 9 Table of Contents The following table presents the commercial real estate portfolio by industry sector at June 30, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans by Industry Sector ​ ​ At June 30, ​ Percentage of ​ 2024 Total ​ ​ (Dollars in thousands) Commercial real estate loans: ​ ​ ​ ​ ​ ​ Owner occupied real estate: ​ ​ ​ ​ ​ ​ Office ​ $ 1,278 ​ % 1.72 Warehouse ​ ​ 1,041 ​ ​ 1.40 Retail ​ ​ 692 ​ ​ 0.93 Accommodation and food service ​ ​ 177 ​ ​ 0.24 Mixed use ​ ​ 1,960 ​ ​ 2.64 Other real estate ​ ​ 301 ​ ​ 0.41 Total owner occupied real estate ​ ​ 5,449 ​ ​ 7.33 ​ ​ ​ ​ ​ ​ ​ Non-owner occupied real estate: ​ ​ ​ ​ ​ ​ Office ​ ​ 7,333 ​ ​ 9.87 Warehouse ​ ​ 1,594 ​ ​ 2.14 Industrial ​ ​ 21,308 ​ ​ 28.67 Retail ​ ​ 32,983 ​ ​ 44.38 Accommodation and food service ​ ​ 1,694 ​ ​ 2.28 Mixed use ​ ​ 1,639 ​ ​ 2.21 Land ​ ​ 1,804 ​ ​ 2.43 Other real estate ​ ​ 512 ​ ​ 0.69 Total non-owner occupied real estate ​ ​ 68,867 ​ ​ 92.67 ​ ​ ​ ​ ​ ​ ​ Total commercial real estate loans ​ $ 74,316 ​ % 100.00 ​ We consider a number of factors in originating commercial real estate loans.
Biggest changeThis loan was performing in accordance with its repayment terms at June 30, 2025. 9 Table of Contents The following table presents the commercial real estate portfolio by industry sector at June 30, 2025 and 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans by Industry Sector ​ Loans by Industry Sector ​ ​ At June 30, ​ Percentage of ​ At June 30, ​ Percentage of ​ 2025 Total ​ 2024 Total ​ ​ (Dollars in thousands) ​ (Dollars in thousands) Commercial real estate loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Owner occupied real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Office ​ $ 1,212 ​ % 1.32 ​ $ 1,278 ​ % 1.72 Warehouse ​ ​ 990 ​ ​ 1.08 ​ ​ 1,041 ​ ​ 1.40 Retail ​ ​ 1,576 ​ ​ 1.72 ​ ​ 692 ​ ​ 0.93 Accommodation and food service ​ ​ 145 ​ ​ 0.16 ​ ​ 177 ​ ​ 0.24 Mixed use ​ ​ 1,881 ​ ​ 2.05 ​ ​ 1,960 ​ ​ 2.64 Other real estate ​ ​ 286 ​ ​ 0.31 ​ ​ 301 ​ ​ 0.41 Total owner-occupied real estate ​ ​ 6,090 ​ ​ 6.63 ​ ​ 5,449 ​ ​ 7.33 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner-occupied real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Office ​ ​ 6,934 ​ ​ 7.55 ​ ​ 7,333 ​ ​ 9.87 Warehouse ​ ​ 1,539 ​ ​ 1.68 ​ ​ 1,594 ​ ​ 2.14 Industrial ​ ​ 25,022 ​ ​ 27.24 ​ ​ 21,308 ​ ​ 28.67 Retail ​ ​ 41,201 ​ ​ 44.85 ​ ​ 32,983 ​ ​ 44.38 Accommodation and food service ​ ​ 7,657 ​ ​ 8.33 ​ ​ 1,694 ​ ​ 2.28 Mixed use ​ ​ 1,612 ​ ​ 1.75 ​ ​ 1,639 ​ ​ 2.21 Land ​ ​ 1,725 ​ ​ 1.88 ​ ​ 1,804 ​ ​ 2.43 Other real estate ​ ​ 87 ​ ​ 0.09 ​ ​ 512 ​ ​ 0.69 Total non-owner-occupied real estate ​ ​ 85,777 ​ ​ 93.37 ​ ​ 68,867 ​ ​ 92.67 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total commercial real estate loans ​ $ 91,867 ​ % 100.00 ​ $ 74,316 ​ % 100.00 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We consider a number of factors in originating commercial real estate loans.
As part of our effort to expand into Southeastern Wisconsin, in 2018 we opened a new branch in Mequon, Wisconsin and in 2024 a new branch in Brookfield, Wisconsin.
As part of our effort to expand into Southeastern Wisconsin, in 2024, we opened a new branch in Brookfield, Wisconsin and in 2018, we opened a branch in Mequon, Wisconsin.
Market Area We conduct our business from our main office and four branch offices, which are located in Marathon and Ozaukee Counties, Wisconsin. Our primary market area is broadly defined as the Wausau, Wisconsin metropolitan area, including Marathon and Ozaukee Counties. In recent years, we have expanded our operations into Southeastern Wisconsin, primarily Milwaukee and Waukesha counties.
Market Area We conduct our business from our main office and four branch offices, which are located in Marathon, Ozaukee and Waukesha Counties, Wisconsin. Our primary market area is broadly defined as the Wausau, Wisconsin metropolitan area, including Marathon, Ozaukee and Waukesha Counties. In recent years, we have expanded our operations into Southeastern Wisconsin, primarily Milwaukee and Waukesha counties.
The allowance for credit losses on loans that are individually evaluated may be estimated based on their expected cash flows, or, in the case of loans for which repayment is expected substantially through the operation or sale of collateral when the borrower is experiencing financial difficulty, may be measured based on the fair value of the collateral less estimated costs to sell.
The allowance for credit losses on loans that are individually evaluated may be estimated based on their expected cash flows, or, in the case of loans for which repayment is expected substantially through the operation or sale of collateral when the borrower is experiencing financial difficulty, may be measured based on the fair value of the collateral less estimated costs to sell.
In addition, 23 Table of Contents we receive funds from scheduled loan payments, investment maturities, loan prepayments, retained earnings and income on earning assets. While scheduled loan payments and income on earning assets are relatively stable sources of funds, deposit inflows and outflows can vary widely and are influenced by prevailing interest rates, market conditions and levels of competition. Deposits.
In addition, we receive funds from scheduled loan payments, investment maturities, loan prepayments, retained earnings and income on earning assets. While scheduled loan payments and income on earning assets are relatively stable sources of funds, 23 Table of Contents deposit inflows and outflows can vary widely and are influenced by prevailing interest rates, market conditions and levels of competition. Deposits.
Marathon Bank’s operations are also subject to federal laws applicable to credit transactions, such as the: · Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers; · Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves; · Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit; · Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies; · Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; 33 Table of Contents · Truth in Savings Act; and · rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.
Marathon Bank’s operations are also subject to federal laws applicable to credit transactions, such as the: • Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers; • Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves; 33 Table of Contents • Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit; • Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies; • Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; • Truth in Savings Act; and • rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.
Finally, an emerging growth company may elect to comply with new or amended accounting pronouncements in the same manner as a private company, but must make such election when the company is first required to file a registration statement. Marathon Bancorp, Inc. has elected to comply with new or amended accounting pronouncements in the same manner as a private company.
Finally, an emerging growth company may elect to comply with new or amended accounting pronouncements in the same manner as a private company, but must make such election when the company is first required to file a registration statement. Marathon Bancorp has elected to comply with new or amended accounting pronouncements in the same manner as a private company.
The following discussion of federal and state taxation is intended only to summarize material income tax matters and is not a comprehensive description of the tax rules applicable to Marathon MHC, Marathon Bancorp and Marathon Bank. Our federal and state tax returns have not been audited for the past five years. Federal Taxation Method of Accounting.
The following discussion of federal and state taxation is intended only to summarize material income tax matters and is not a comprehensive description of the tax rules applicable to Marathon Bancorp and Marathon Bank. Our federal and state tax returns have not been audited for the past five years. Federal Taxation Method of Accounting.
Acquisition of more than 10% of any class of a bank holding company’s voting securities constitutes a rebuttable presumption of control under certain circumstances, including where, as is the case with Marathon Bancorp, Inc., the issuer has registered securities under Section 12 of the Securities Exchange Act of 1934.
Acquisition of more than 10% of any class of a bank holding company’s voting securities constitutes a rebuttable presumption of control under certain circumstances, including where, as is the case with Marathon Bancorp, the issuer has registered securities under Section 12 of the Securities Exchange Act of 1934.
Under the JOBS Act, a company with total annual gross revenues of less than $1.235 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” Marathon Bancorp, Inc. qualifies as an emerging growth company under the JOBS Act.
Under the JOBS Act, a company with total annual gross revenues of less than $1.235 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” Marathon Bancorp qualifies as an emerging growth company under the JOBS Act.
Subject to market conditions, we expect to continue our focus on originating more commercial real estate and multifamily real estate loans in an effort to further increase the overall yield earned on our loans and assist in managing interest rate risk.
Subject to market conditions, we expect to continue our focus on originating commercial real estate and multifamily real estate loans in an effort to further increase the overall yield earned on our loans and assist in managing interest rate risk.
This loan was performing in accordance with its repayment terms at June 30, 2024. 10 Table of Contents In underwriting multifamily real estate loans, we consider a number of factors, which include the projected net cash flow to the loan’s debt service requirement (generally requiring a minimum of 125%), the age and condition of the collateral, the financial resources and income level of the borrower and the borrower’s experience in owning or managing similar properties.
This loan was performing in accordance with its repayment terms at June 30, 2025. 10 Table of Contents In underwriting multifamily real estate loans, we consider a number of factors, which include the projected net cash flow to the loan’s debt service requirement (generally requiring a minimum of 125%), the age and condition of the collateral, the financial resources and income level of the borrower and the borrower’s experience in owning or managing similar properties.
Federal Law and Regulation . Sections 23A and 23B of the Federal Reserve Act govern transactions between an insured savings bank, such as Marathon Bank, and any of its affiliates, including Marathon Bancorp, Inc.
Federal Law and Regulation. Sections 23A and 23B of the Federal Reserve Act govern transactions between an insured savings bank, such as Marathon Bank, and any of its affiliates, including Marathon Bancorp.
Some of the principal activities that the Federal Reserve Board has determined by regulation to be so closely related to banking are: (i) making or servicing loans; (ii) performing certain data processing services; (iii) providing discount brokerage services; (iv) acting as fiduciary, investment or financial advisor; (v) leasing personal or real property; (vi) making 34 Table of Contents investments in corporations or projects designed primarily to promote community welfare; and (vii) acquiring a savings and loan association whose direct and indirect activities are limited to those permitted for bank holding companies.
Some of the principal activities that the Federal Reserve Board has determined by regulation to be so closely related to banking are: (i) making or servicing loans; (ii) performing certain data processing services; (iii) providing discount brokerage services; (iv) acting as fiduciary, investment or financial advisor; (v) leasing personal or real property; (vi) making investments in corporations or projects designed primarily to promote community welfare; and (vii) acquiring a savings and loan association whose direct and indirect activities are limited to those permitted for bank holding companies.
The following tables set forth the contractual maturities of our total loan portfolio at June 30, 2024. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. The tables present contractual maturities and do not reflect repricing or the effect of prepayments. Actual maturities may differ.
The following tables set forth the contractual maturities of our total loan portfolio at June 30, 2025. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. The tables present contractual maturities and do not reflect repricing or the effect of prepayments. Actual maturities may differ.
There were no borrowings under these arrangements at June 30, 2024. 24 Table of Contents Personnel and Human Capital Resources As of June 30, 2024, we had 35 full-time equivalent employees. Our employees are not represented by any collective bargaining group. Management believes that we have good working relations with our employees.
There were no borrowings under these arrangements at June 30, 2025. 24 Table of Contents Personnel and Human Capital Resources As of June 30, 2025, we had 35 full-time equivalent employees. Our employees are not represented by any collective bargaining group. Management believes that we have good working relations with our employees.
At June 30, 2024, Marathon Bank’s Required Liquidity Ratio was 8%, and Marathon Bank was in compliance with this requirement. In addition, 50% of the liquid assets maintained by a Wisconsin savings bank must consist of “primary liquid assets,” which are defined to include securities issued by the U.S. Government, U.S.
At June 30, 2025, Marathon Bank’s Required Liquidity Ratio was 8%, and Marathon Bank was in compliance with this requirement. In addition, 50% of the liquid assets maintained by a Wisconsin savings bank must consist of “primary liquid assets,” which are defined to include securities issued by the U.S. Government, U.S.
Net operating loss carryforwards arising from tax years beginning after 2018 are limited to offset a maximum of 80% of a future year’s taxable income. At June 30, 2024, the Company had no federal net operating loss carryforwards. Capital Loss Carryovers. A corporation cannot recognize capital losses in excess of capital gains generated.
Net operating loss carryforwards arising from tax years beginning after 2018 are limited to offset a maximum of 80% of a future year’s taxable income. At June 30, 2025, the Company had no federal net operating loss carryforwards. Capital Loss Carryovers. A corporation cannot recognize capital losses in excess of capital gains generated.
Our multifamily real estate loans are generally secured by properties consisting of five or more rental units in our market area. Our multifamily real estate loans generally have fixed rates, initial terms of five years and amortization periods of up to 20 years, with a balloon payment due at the end of the initial term.
Our multifamily real estate loans are generally secured by properties consisting of five or more rental units in our market area. Our multifamily real estate loans generally have fixed rates, initial terms of five years and amortization periods of up to 30 years, with a balloon payment due at the end of the initial term.
As such, it is grouped with any other capital losses for the year to which it is carried and is used to offset any capital gains. Any unutilized loss carryforward remaining after the five-year carryover period is not deductible. At June 30, 2024, the Company had no capital loss carryovers. Corporate Dividends.
As such, it is grouped with any other capital losses for the year to which it is carried and is used to offset any capital gains. Any unutilized loss carryforward remaining after the five-year carryover period is not deductible. At June 30, 2025, the Company had no capital loss carryovers. Corporate Dividends.
An emerging growth company also is not subject to the requirement that its auditors attest to the effectiveness of the company’s internal control over financial reporting, and can provide scaled disclosure regarding executive compensation; however, Marathon Bancorp, Inc. will also not be subject to the auditor attestation requirement or additional executive compensation disclosure so long as it remains a “non-accelerated filer” and a “smaller reporting 36 Table of Contents company,” respectively, under Securities and Exchange Commission regulations (generally less than $75 million and $250 million, respectively, of voting and non-voting equity held by non-affiliates or less than $100 million in annual revenue and less than $700 million in public float).
An emerging growth company also is not subject to the requirement that its auditors attest to the effectiveness of the company’s internal control over financial reporting, and can provide scaled disclosure regarding executive compensation; however, Marathon Bancorp will also not be subject to the auditor attestation requirement or additional executive compensation disclosure so long as it remains a “non-accelerated filer” and a “smaller reporting company,” respectively, under Securities and Exchange Commission regulations (generally less than $75 million and $250 million, respectively, of voting and non-voting equity held by non-affiliates or less than $100 million in annual revenue and less than $700 million in public float).
Maturities are based on the final contractual payment dates, and do not reflect the effect of scheduled principal repayments, prepayments, or early redemptions that may occur. All of our debt securities in this table at June 30, 2024, were taxable securities.
Maturities are based on the final contractual payment dates, and do not reflect the effect of scheduled principal repayments, prepayments, or early redemptions that may occur. All of our debt securities in this table at June 30, 2025, were taxable securities.
Government agencies or the state of Wisconsin or a subdivision thereof, and cash. At June 30, 2024, Marathon Bank was in compliance with this requirement. Federal Law and Regulation . The Federal Reserve Board currently has no reserve requirement for Marathon Bank. Transactions with Affiliates and Insiders Wisconsin Law and Regulation .
Government agencies or the state of Wisconsin or a subdivision thereof, and cash. At June 30, 2025, Marathon Bank was in compliance with this requirement. Federal Law and Regulation . The Federal Reserve Board currently has no reserve requirement for Marathon Bank. Transactions with Affiliates and Insiders Wisconsin Law and Regulation .
Marathon Bank, as a member of the Federal Home Loan Bank of Chicago, is required to acquire and hold shares of capital stock in the Federal Home Loan Bank of Chicago in specified amounts. Marathon Bank is in compliance with this requirement with an investment in Federal Home Loan Bank of Chicago stock of $1.3 million at June 30, 2024.
Marathon Bank, as a member of the Federal Home Loan Bank of Chicago, is required to acquire and hold shares of capital stock in the Federal Home Loan Bank of Chicago in specified amounts. Marathon Bank is in compliance with this requirement with an investment in Federal Home Loan Bank of Chicago stock of $1.3 million at June 30, 2025.
Control, as defined under the Bank Holding Company Act and Federal Reserve Board regulations, means ownership, control or power to vote 25% or more of any class of voting stock, control in any manner over the election of a majority of the company’s directors, or a determination by the regulator that the acquiror has the power to exercise, directly or indirectly, a controlling influence over the management or policies of the company.
Control, as defined under the Bank Holding Company Act and Federal Reserve Board regulations, means ownership, control or power to vote 25% or more of any class of voting stock, control in any manner over the election of a majority of the 35 Table of Contents company’s directors, or a determination by the regulator that the acquiror has the power to exercise, directly or indirectly, a controlling influence over the management or policies of the company.
A savings bank’s loans to its executive officers, directors, any owner of more than 10% of its stock (each, an insider) and any of certain entities affiliated with any such person (an insider’s related interest) are subject to the 31 Table of Contents conditions and limitations imposed by Section 22(h) of the Federal Reserve Act and the Federal Reserve Board’s Regulation O thereunder.
A savings bank’s loans to its executive officers, directors, any owner of more than 10% of its stock (each, an insider) and any of certain entities affiliated with any such person (an insider’s related interest) are subject to the conditions and limitations imposed by Section 22(h) of the Federal Reserve Act and the Federal Reserve Board’s Regulation O thereunder.
The FDIC has the authority to establish higher capital requirements for individual institutions where deemed necessary due to a determination that an institution’s capital level is, or is likely to become, inadequate in light of particular circumstances. Marathon Bank exceeds all regulatory capital requirements and is deemed “well capitalized” for regulatory capital purposes as of June 30, 2024 and 2023.
The FDIC has the authority to establish higher capital requirements for individual institutions where deemed necessary due to a determination that an institution’s capital level is, or is likely to become, inadequate in light of particular circumstances. Marathon Bank exceeds all regulatory capital requirements and is deemed “well capitalized” for regulatory capital purposes as of June 30, 2025.
Our commercial real estate loans generally are fixed rate, have initial terms of five years and amortization periods of up to 20 years, with a balloon payment due at the end of the initial term.
Our commercial real estate loans generally are fixed rate, have initial terms of five years and amortization periods of up to 30 years, with a balloon payment due at the end of the initial term.
The guidelines prohibit excessive compensation as an unsafe and unsound practice and describe compensation as excessive when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director, or principal shareholder.
The guidelines prohibit excessive compensation as an unsafe and unsound practice and describe compensation as excessive when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director, or principal stockholder.
The state and federal systems of regulation and supervision establish a comprehensive framework of activities in which Marathon Bank may engage and is intended primarily for the protection of depositors and the FDIC’s Deposit Insurance Fund, and not for the protection of security holders. Marathon Bank is also regulated to a lesser extent by the Federal Reserve Board.
The state and federal systems of regulation and supervision establish a comprehensive framework of activities in which Marathon Bank may engage and is intended primarily for the protection of depositors and the FDIC’s Deposit Insurance Fund, and not for the protection of stockholders. Marathon Bank is also regulated to a lesser extent by the Federal Reserve Board.
If a Wisconsin savings bank’s capital ratio falls below the required level, the WDFI may direct the savings bank to adhere to a specific written plan established by the WDFI to correct the savings bank’s capital deficiency, as well as a number of other restrictions on the savings bank’s operations, including a prohibition on the payment of dividends.
If a Wisconsin savings bank’s capital ratio falls below the required level, the WDFI may direct the savings bank to adhere to a specific written plan established by the WDFI to correct the savings bank’s capital deficiency, as well as a number of other restrictions on the 28 Table of Contents savings bank’s operations, including a prohibition on the payment of dividends.
The Community Reinvestment Act does not establish specific lending requirements or 32 Table of Contents programs for financial institutions nor does it limit an institution’s discretion to develop the types of products and services that it believes are best suited to its particular community, consistent with the Community Reinvestment Act.
The Community Reinvestment Act does not establish specific lending requirements or programs for financial institutions nor does it limit an institution’s discretion to develop the types of products and services that it believes are best suited to its particular community, consistent with the Community Reinvestment Act.
However, the Federal Reserve Board has provided a “Small Bank Holding Company” exception to its consolidated capital requirements, and bank holding companies with less than $3.0 billion of consolidated assets are not subject to the consolidated holding company capital requirements unless otherwise directed by the Federal Reserve Board.
However, the Federal Reserve Board has provided a “Small Bank Holding Company” 34 Table of Contents exception to its consolidated capital requirements, and bank holding companies with less than $3.0 billion of consolidated assets are not subject to the consolidated holding company capital requirements unless otherwise directed by the Federal Reserve Board.
In addition, the WDFI and the FDIC periodically review our allowance for credit losses and as a result of such reviews, we may have to adjust our allowance for loan losses or recognize further loan charge-offs. Allowance for Credit Losses on Unfunded Commitments.
In addition, the WDFI and the FDIC periodically review our allowance for credit losses and as a result of such reviews, we may have to adjust our allowance for loan losses or recognize further loan charge-offs. ​ 19 Table of Contents ​ Allowance for Credit Losses on Unfunded Commitments.
The SEC maintains an Internet site (www.sec.gov) that contains reports, proxy and information statements and other information regarding issuers such as the Company that file electronically with the SEC. All filed SEC reports and interim filings can also be obtained from the Company’s website www.marathonbancorp.com on the “Investor Relations” page, without charge from the Company.
The SEC maintains an Internet site (www.sec.gov) that contains reports, proxy and information statements and other information regarding issuers such as the Company that file electronically with the SEC. All filed SEC reports and 5 Table of Contents interim filings can also be obtained from the Company’s website www.marathonbancorp.com on the “Investor Relations” page, without charge from the Company.
Our fixed-rate one- to four-family residential real estate loans typically have terms of 10 to 30 years and are generally underwritten according to Fannie Mae guidelines when the loan balance meets such guidelines, and we refer to loans that conform to such guidelines as “conforming loans.” We generally originate both fixed- and adjustable-rate mortgage loans in amounts up to the maximum conforming loan limits as established by the Federal Housing Finance Agency, which as of June 30, 2024 was $766,550 for single-family homes in our market area.
Our fixed-rate one- to four-family residential real estate loans typically have terms of 10 to 30 years and are generally underwritten according to Fannie Mae guidelines when the loan balance meets such guidelines, and we refer to loans that conform to such guidelines as “conforming loans.” We generally originate both fixed- and adjustable-rate mortgage loans in amounts up to the maximum conforming loan limits as established by the Federal Housing Finance Agency, which as of June 30, 2025 was $806,500 for single-family homes in our market area.
Federal regulations require FDIC insured depository institutions to meet several minimum capital standards: a common equity Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk- 28 Table of Contents based assets ratio of 6.0%, a total capital to risk-based assets of 8.0%, and a 4.0% Tier 1 capital to total assets leverage ratio.
Federal regulations require FDIC insured depository institutions to meet several minimum capital standards: a common equity Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk-based assets ratio of 6.0%, a total capital to risk-based assets of 8.0%, and a 4.0% Tier 1 capital to total assets leverage ratio.
There is an exception to this approval requirement for well-capitalized bank holding companies that meet certain other conditions. These regulatory policies may affect the ability of Marathon Bancorp, Inc. to pay dividends, repurchase shares of common stock or otherwise engage in capital distributions. Waivers of Dividends by Marathon MHC .
There is an exception to this approval requirement for well-capitalized bank holding companies that meet certain other conditions. These regulatory policies may affect the ability of Marathon Bancorp to pay dividends, repurchase shares of common stock or otherwise engage in capital distributions.
These securities often provide slightly higher after-tax yields than U.S. government and agency securities and mortgage-backed securities, but are not as liquid as other investments, so we typically maintain investments in municipal securities, to the extent appropriate, for generating returns in our investment portfolio. Mortgage-Backed Securities .
These securities often provide slightly higher after-tax yields than U.S. government and agency securities and mortgage-backed securities, but are not as liquid as other 22 Table of Contents investments, so we typically maintain investments in municipal securities, to the extent appropriate, for generating returns in our investment portfolio. Mortgage-Backed Securities .
Federal Securities Laws Marathon Bancorp, Inc.’s common stock is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934. Marathon Bancorp, Inc. is subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934.
Federal Securities Laws Marathon Bancorp’s common stock is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934. Marathon Bancorp is subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934.
An institution that temporarily ceases to meet any qualifying criteria is provided with a two-quarter grace period to again achieve compliance provided that the institution’s leverage ratio falls no more than one percentage point below the applicable community bank leverage ratio requirement.
An institution that temporarily ceases to meet any 29 Table of Contents qualifying criteria is provided with a two-quarter grace period to again achieve compliance provided that the institution’s leverage ratio falls no more than one percentage point below the applicable community bank leverage ratio requirement.
Our commercial real estate loans are generally secured by office and industrial buildings, warehouses, small retail facilities and other special purpose commercial properties, primarily in Southeastern Wisconsin. At June 30, 2024, $67.1 million of our commercial real estate portfolio was secured by non-owner-occupied commercial real estate.
Our commercial real estate loans are generally secured by office and industrial buildings, warehouses, small retail facilities and other special purpose commercial properties, primarily in Southeastern Wisconsin. At June 30, 2025, $84.1 million of our commercial real estate portfolio was secured by non-owner-occupied commercial real estate.
All such loans were performing in accordance with their original repayment terms. We also have participated out portions of loans that exceeded our loans-to-one borrower legal lending limit and for risk diversification. At June 30, 2024, we had participated out portions of seven loans with an aggregate amount of $8.8 million. Historically, we have not purchased whole loans.
All such loans were performing in accordance with their original repayment terms. We also have participated out portions of loans that exceeded our loans-to-one borrower legal lending limit and for risk diversification. At June 30, 2025, we had participated out portions of five loans with an aggregate amount of $8.0 million. Historically, we have not purchased whole loans.
To a much lesser extent, we offer a variety of consumer loans to individuals who reside or work in our market area, including home equity lines of credit, new and used automobile loans, and loans secured by certificates of deposit. At June 30, 2024, our consumer loan portfolio totaled $1.6 million, or 0.9% of our total loan portfolio.
To a much lesser extent, we offer a variety of consumer loans to individuals who reside or work in our market area, including home equity lines of credit, new and used automobile loans, and loans secured by certificates of deposit. At June 30, 2025, our consumer loan portfolio totaled $2.0 million, or 1.0% of our total loan portfolio.
For federal income tax purposes, Marathon Bank currently reports its income and expenses on the accrual method of accounting and uses a tax year ending June 30 for filing its federal income tax returns. Marathon Bancorp and Marathon Bank intend to file a consolidated federal income tax return beginning with the taxable year ended June 30, 2024.
For federal income tax purposes, Marathon Bank currently reports its income and expenses on the accrual method of accounting and uses a tax year ending June 30 for filing its federal income tax returns. Marathon Bancorp and Marathon Bank intend to file a consolidated federal income tax return for the taxable year ended June 30, 2025.
As such, Marathon Bancorp, Inc. and Marathon MHC are registered with the Federal Reserve Board and subject to the regulation, examination, supervision and reporting requirements applicable to bank holding companies. In addition, the Federal Reserve Board has enforcement authority over Marathon Bancorp, Inc., Marathon MHC and its non-savings institution subsidiaries.
As such, Marathon Bancorp is registered with the Federal Reserve Board and subject to the regulation, examination, supervision and reporting requirements applicable to bank holding companies. In addition, the Federal Reserve Board has enforcement authority over Marathon Bancorp and its non-savings institution subsidiaries.
Virtually all of our multifamily real estate loans are secured by properties located within our primary lending markets in Wisconsin. At June 30, 2024, the average loan size of our multifamily real estate loans was $1.0 million and the largest of such loans was a $4.8 million loan secured by multiple non-owner-occupied rental properties.
Virtually all of our multifamily real estate loans are secured by properties located within our primary lending markets in Wisconsin. At June 30, 2025, the average loan size of our multifamily real estate loans was $1.0 million and the largest of such loans was an approximately $4.8 million loan secured by multiple non-owner-occupied rental properties.
It makes advances to members in accordance with policies and procedures established by the Federal Housing Finance Board and the board of directors of the Federal Home Loan Bank of Chicago. At June 30, 2024, Marathon Bank had $8.0 million of advances from the Federal Home Loan Bank of Chicago.
It makes advances to members in accordance with policies and procedures established by the Federal Housing Finance Board and the board of directors of the Federal Home Loan Bank of Chicago. At June 30, 2025, Marathon Bank had $15.0 million of advances from the Federal Home Loan Bank of Chicago.
The Gramm-Leach-Bliley Act of 1999 authorized a bank holding company that meets specified conditions, including being “well capitalized” and “well managed,” to opt to become a “financial holding company” and thereby engage in a broader array of financial activities than previously permitted. Such activities can include insurance underwriting and investment banking.
The Gramm-Leach-Bliley Act of 1999 authorized a bank holding company that meets specified conditions, including being “well capitalized” and “well managed,” to opt to become a “financial holding company” and thereby engage in a broader array of financial activities than previously permitted. Such activities can include insurance underwriting and investment banking. Marathon Bancorp did not elect “financial holding company” status.
Such required compliance programs are intended to supplement existing compliance requirements that also apply to financial institutions under the Bank Secrecy Act and the Office of Foreign Assets Control regulations. Holding Company Regulation General . Marathon Bancorp, Inc. and Marathon MHC are bank holding companies within the meaning of the Bank Holding Company of 1956.
Such required compliance programs are intended to supplement existing compliance requirements that also apply to financial institutions under the Bank Secrecy Act and the Office of Foreign Assets Control regulations. Holding Company Regulation General . Marathon Bancorp is a bank holding company within the meaning of the Bank Holding Company Act of 1956.
The following table sets forth our loan delinquencies, including non-accrual loans, by type and amount at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, ​ ​ 2024 ​ 2023 ​ ​ 30-59 ​ 60-89 ​ 90 Days ​ 30-59 ​ 60-89 ​ 90 Days ​ ​ Days ​ Days ​ or More ​ Days ​ Days ​ or More ​ Past Due Past Due Past Due Past Due Past Due Past Due ​ ​ (In thousands) Real estate loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ $ 68 ​ $ — ​ $ — ​ $ 27 ​ $ — ​ $ — Multifamily ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Construction ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial and industrial loans ​ ​ — ​ ​ — ​ ​ — ​ ​ 16 ​ ​ — ​ ​ — Consumer loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ Total ​ $ 68 ​ $ — ​ $ — ​ $ 43 ​ $ — ​ $ — ​ Non-Performing Assets.
The following table sets forth our loan delinquencies, including non-accrual loans, by type and amount at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ 30-59 ​ 60-89 ​ 90 Days ​ Non- ​ 30-59 ​ 60-89 ​ 90 Days ​ Non- ​ ​ Days ​ Days ​ or More ​ Accrual ​ Days ​ Days ​ or More ​ Accrual ​ Past Due Past Due Past Due ​ ​ Past Due Past Due Past Due ​ ​ ​ ​ (In thousands) ​ ​ Real estate loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ $ 253 ​ $ — ​ $ — $ 67 ​ $ 68 ​ $ — ​ $ — $ — Multifamily ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ — Commercial ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ — Construction ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ — Commercial and industrial loans ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ — Consumer loans ​ ​ — ​ ​ — ​ ​ — ​ ​ ​ ​ — ​ ​ ​ ​ ​ ​ ​ — Total ​ $ 253 ​ $ — ​ $ — $ 67 ​ $ 68 ​ $ — ​ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-Performing Assets.
As a result of the reorganization, the Bank became a wholly-owned subsidiary of the Company, the Company issued and sold 45.0% of its outstanding shares in its stock offering to the public, and the Company issued 55.0% of its outstanding shares to Marathon MHC, which is the Company’s mutual holding company.
As a result of the reorganization, the Bank became a wholly-owned subsidiary of the Company, the Company issued and sold 45.0% of its outstanding shares of common stock in its stock offering to the public, and the Company issued 55.0% of its outstanding shares of common stock to Marathon MHC (“Mutual Holding Company”), which was the Company’s mutual holding company.
Failure to meet the qualifying criteria within the grace period or maintain the required leverage ratio requires the institution to comply with the generally applicable capital requirements. 29 Table of Contents As of June 30, 2024, Marathon Bank elected to use the community bank leverage ratio.
Failure to meet the qualifying criteria within the grace period or maintain the required leverage ratio requires the institution to comply with the generally applicable capital requirements. As of June 30, 2025, Marathon Bank elected to use the community bank leverage ratio.
The Federal Home Loan Bank of Chicago common stock is carried at cost. We may be required to purchase additional Federal Home Loan Bank of Chicago stock if we increase borrowings in the future. Portfolio Maturities and Yields. The composition and maturities of the debt securities held to maturity portfolio at June 30, 2024, are summarized in the following table.
We may be required to purchase additional Federal Home Loan Bank of Chicago stock if we increase borrowings in the future. Portfolio Maturities and Yields. The composition and maturities of the debt securities held to maturity portfolio at June 30, 2025, are summarized in the following table.
Due to a change in Wisconsin tax law that provides for a subtraction from the Bank’s state taxable income for loan and fee interest income from certain commercial and agricultural loans, management determined that the Company was highly unlikely to incur a material 25 Table of Contents Wisconsin tax liability in the foreseeable future, instead generating Wisconsin net operating loss carryforwards that would never be realized; and, accordingly a valuation allowance of $321,000 was established for these carryforwards.
Due to a change in Wisconsin tax law that provides for a subtraction from the Bank’s state taxable income for loan and fee interest income from certain commercial and agricultural loans, management determined that the Company was highly unlikely to incur a material Wisconsin tax liability in the foreseeable future, instead generating Wisconsin net operating loss carryforwards that would never be realized; and, accordingly a valuation allowance of $665,000 was established for these carryforwards at June 30, 2025.
At June 30, 2024 and 2023, we had $13.0 million and $8.0 million, respectively of Federal Home Loan Bank of Chicago advances (see Note 10 of the Notes to the Consolidated Financial Statements).
At June 30, 2025 and 2024, we had $15.0 million and $13.0 million, respectively of Federal Home Loan Bank of Chicago advances (see Note 10 of the Notes to the Audited Consolidated Financial Statements).
Current prepayment speeds determine whether prepayment estimates require modification that could cause amortization or accretion adjustments. Other Securities. We held common stock of the Federal Home Loan Bank of Chicago in connection with our borrowing activities totaling $1.3 million and $770,000 at June 30, 2024 and 2023, respectively.
Current prepayment speeds determine whether prepayment estimates require modification that could cause amortization or accretion adjustments. Other Securities. We held common stock of the Federal Home Loan Bank of Chicago in connection with our borrowing activities totaling $1.3 million at June 30, 2025 and 2024. The Federal Home Loan Bank of Chicago common stock is carried at cost.
While we have developed our commercial real estate platform in recent years, we also remain committed to our local community and intend to continue to be a significant one- to four-family residential mortgage lender in our market areas.
While we have developed our commercial real estate platform in recent years, we also remain committed to our local community and intend to continue to be a significant one- to four-family residential mortgage lender in our market areas subject to market conditions and the interest rate environment.
Deposit account terms vary, with the principal differences being the minimum balance required, the amount of time the funds must remain on deposit and the interest rate. At June 30, 2024, we had $13.4 million in brokered deposits.
Deposit account terms vary, with the principal differences being the minimum balance required, the amount of time the funds must remain on deposit and the interest rate. At June 30, 2025, we had $12.0 million in brokered deposits.
At June 30, 2024, we had $5.2 million of commercial and industrial loans, representing 2.8% of our total portfolio. These loans are generally originated to small businesses and medical providers in our primary market areas. Our commercial and industrial loans are generally used by the borrowers for working capital purposes or for acquiring equipment or inventory.
At June 30, 2025, we had $3.9 million of commercial and industrial loans, representing 1.9% of our total portfolio. These loans are generally originated to small businesses and medical providers in our primary market areas. Our commercial and industrial loans are generally used by the borrowers for working capital purposes or for acquiring equipment or inventory.
At June 30, 2024, the average loan size of our commercial and industrial loans was $72,000, and our largest outstanding commercial and industrial loan balance was a $456,000 loan to a trucking company. This loan was performing in accordance with its repayment terms at June 30, 2024.
At June 30, 2025, the average loan size of our commercial and industrial loans was $69,000, and our largest outstanding commercial and industrial loan balance was a $416,000 loan to a trucking company. This loan was performing in accordance with its repayment terms at June 30, 2025.
In estimating the net amount expected to be collected for held to maturity securities in an unrealized loss position, a historical loss based method is utilized. 20 Table of Contents The following table sets forth activity in our allowance for credit losses for the years indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended ​ ​ June 30, ​ 2024 2023 ​ (Dollars in thousands) Allowance at beginning of year ​ $ 2,159 ​ $ 2,195 Implementation of CECL (Notes 1 and 4) ​ ​ (175) ​ ​ — Provision for (recovery of ) credit losses ​ ​ (190) ​ ​ — ​ ​ ​ ​ ​ ​ ​ Charge offs: ​ ​ ​ ​ ​ ​ Real estate loans: ​ ​ ​ ​ ​ ​ One- to four-family residential ​ ​ — ​ ​ — Multifamily ​ ​ — ​ ​ — Commercial ​ ​ — ​ ​ (137) Construction ​ ​ — ​ ​ — Commercial and industrial loans ​ ​ — ​ ​ — Consumer loans ​ ​ — ​ ​ — Total charge-offs ​ ​ — ​ ​ (137) ​ ​ ​ ​ ​ ​ ​ Recoveries: ​ ​ ​ ​ ​ ​ Real estate loans: ​ ​ ​ ​ ​ ​ One- to four-family residential ​ ​ — ​ ​ — Multifamily ​ ​ — ​ ​ — Commercial ​ ​ — ​ ​ 98 Construction ​ ​ — ​ ​ — Commercial and industrial loans ​ ​ — ​ ​ — Consumer loans ​ ​ 3 ​ ​ 3 Total recoveries ​ ​ 3 ​ ​ 101 ​ ​ ​ ​ ​ ​ ​ Net (charge-offs) recoveries ​ ​ 3 ​ ​ (36) ​ ​ ​ ​ ​ ​ ​ Allowance at end of year ​ $ 1,797 ​ $ 2,159 ​ ​ ​ ​ ​ ​ ​ Allowance to non-performing loans ​ ​ — ​ ​ — Allowance to total loans outstanding at the end of the year ​ ​ 0.97% ​ ​ 1.08% Net (charge-offs) recoveries to average loans outstanding during the year ​ ​ — ​ ​ (0.02)% ​ ​ ​ ​ ​ ​ ​ Net (charge-offs) recoveries to average loans outstanding during the year: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate loans: ​ ​ ​ ​ ​ ​ One- to four-family residential ​ ​ — ​ ​ — Multifamily ​ ​ — ​ ​ — Commercial ​ ​ — ​ ​ (0.02)% Construction ​ ​ — ​ ​ — Commercial and industrial loans ​ ​ — ​ ​ — Consumer loans ​ ​ — ​ ​ — Total net (charge-offs) recoveries to average loans outstanding during the year ​ ​ — ​ ​ (0.02)% ​ 21 Table of Contents Allocation of Allowance for Credit Losses.
In estimating the net amount expected to be collected for held to maturity securities in an unrealized loss position, a historical loss based method is utilized. 20 Table of Contents The following table sets forth activity in our allowance for credit losses for the years indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended ​ ​ June 30, ​ 2025 2024 ​ (Dollars in thousands) Allowance at beginning of year ​ $ 1,797 ​ $ 2,159 Implementation of CECL ​ ​ — ​ ​ (175) Provision for (recovery of ) credit losses ​ ​ (94) ​ ​ (190) ​ ​ ​ ​ ​ ​ ​ Charge offs: ​ ​ ​ ​ ​ ​ Real estate loans: ​ ​ ​ ​ ​ ​ One- to four-family residential ​ ​ — ​ ​ — Multifamily ​ ​ — ​ ​ — Commercial ​ ​ — ​ ​ — Construction ​ ​ — ​ ​ — Commercial and industrial loans ​ ​ — ​ ​ — Consumer loans ​ ​ — ​ ​ — Total charge-offs ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ Recoveries: ​ ​ ​ ​ ​ ​ Real estate loans: ​ ​ ​ ​ ​ ​ One- to four-family residential ​ ​ — ​ ​ — Multifamily ​ ​ — ​ ​ — Commercial ​ ​ — ​ ​ — Construction ​ ​ — ​ ​ — Commercial and industrial loans ​ ​ — ​ ​ — Consumer loans ​ ​ 5 ​ ​ 3 Total recoveries ​ ​ 5 ​ ​ 3 ​ ​ ​ ​ ​ ​ ​ Net (charge-offs) recoveries ​ ​ 5 ​ ​ 3 ​ ​ ​ ​ ​ ​ ​ Allowance at end of year ​ $ 1,708 ​ $ 1,797 ​ ​ ​ ​ ​ ​ ​ Allowance to non-performing loans ​ ​ 2,549.25% ​ ​ — Allowance to total loans outstanding at the end of the year ​ ​ 0.84% ​ ​ 0.97% Net (charge-offs) recoveries to average loans outstanding during the year ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ Net (charge-offs) recoveries to average loans outstanding during the year: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate loans: ​ ​ ​ ​ ​ ​ One- to four-family residential ​ ​ — ​ ​ — Multifamily ​ ​ — ​ ​ — Commercial ​ ​ — ​ ​ — Construction ​ ​ — ​ ​ — Commercial and industrial loans ​ ​ — ​ ​ — Consumer loans ​ ​ — ​ ​ — Total net (charge-offs) recoveries to average loans outstanding during the year ​ ​ — ​ ​ — ​ 21 Table of Contents Allocation of Allowance for Credit Losses.
Please refer to Note 3 of the notes to consolidated financial statements for the composition and maturities of the debt securities available for sale portfolio at June 30, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ More than One Year ​ More than Five Years ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One Year or Less ​ through Five Years ​ through Ten Years ​ More than Ten Years ​ Total ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ Amortized ​ Average ​ Amortized ​ Average ​ Amortized ​ Average ​ ​ Amortized ​ Average ​ Amortized ​ Fair ​ Average ​ ​ Cost Yield Cost Yield Cost Yield Cost Yield Cost Value Yield ​ ​ ​ ​ (Dollars in thousands) ​ Debt securities held to maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ — ​ — ​ $ — ​ — ​ $ 420 ​ 0.15 % $ 90 ​ — ​ $ 510 ​ $ 394 ​ 0.15 % Total ​ $ — ​ — ​ $ — ​ — ​ $ 420 ​ 0.15 % $ 90 ​ — ​ $ 510 ​ $ 394 ​ 0.15 % ​ Sources of Funds General.
Please refer to Note 3 of the notes to the audited consolidated financial statements for the composition and maturities of the debt securities available for sale portfolio at June 30, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ More than One Year ​ More than Five Years ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One Year or Less ​ through Five Years ​ through Ten Years ​ More than Ten Years ​ Total ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ Amortized ​ Average ​ Amortized ​ Average ​ Amortized ​ Average ​ ​ Amortized ​ Average ​ Amortized ​ Fair ​ Average ​ ​ Cost Yield Cost Yield Cost Yield Cost Yield Cost Value Yield ​ ​ ​ ​ (Dollars in thousands) ​ Debt securities held to maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ — ​ — ​ $ — ​ — ​ $ 394 ​ 0.22 % $ 90 ​ 0.01 % $ 484 ​ $ 374 ​ 0.18 % Total ​ $ — ​ — ​ $ — ​ — ​ $ 394 ​ 0.22 % $ 90 ​ 0.01 % $ 484 ​ $ 374 ​ 0.18 % ​ Sources of Funds General.
Depending on the collateral used to secure the loans, commercial and industrial loans are made in amounts generally of up to 75% of the value of the collateral securing the loan. At June 30, 2024, $3.0 million of commercial and industrial loans were unsecured. Construction Loans.
Depending on the collateral used to secure the loans, commercial and industrial loans are made in amounts generally of up to 75% of the value of the collateral securing the loan. At June 30, 2025, $2.4 million of commercial and industrial loans were unsecured. Construction Loans.
As of June 30, 2024, we had a master contract agreement with the Federal Home Loan Bank of Chicago pursuant to which we could borrow up to $79.5 million subject to providing additional collateral.
As of June 30, 2025, we had a master contract agreement with the Federal Home Loan Bank of Chicago pursuant to which we could borrow up to $82.8 million subject to providing additional collateral.
At June 30, 2024, we had $20.1 million in jumbo loans, which represented 36.8% of our one- to four-family residential real estate loans. Our average loan size for jumbo loans was $1.3 million at June 30, 2024. Virtually all of our one- to four-family residential real estate loans are secured by properties located in Marathon County, Wisconsin.
At June 30, 2025, we had $21.0 million in jumbo loans, which represented 37.3% of our one- to four-family residential real estate loans. Our average loan size for jumbo loans was $1.3 million at June 30, 2025. Virtually all of our one- to four-family residential real estate loans are secured by properties located in Marathon County, Wisconsin.
Lending Activities General. Our lending activity consists of originating commercial and multifamily real estate loans, one- to four-family residential real estate loans and, to a lesser extent, commercial and industrial loans, construction loans and consumer loans.
Our lending activity consists of originating commercial and multifamily real estate loans, one- to four-family residential real estate loans and, to a lesser extent, commercial and industrial loans, construction loans and 7 Table of Contents consumer loans.
At June 30, 2024, we had $57.8 million of loans secured by one- to four-family residential real estate, representing 31.2% of our total loan portfolio, which included no residential mortgages held for sale. We originate both fixed-rate and adjustable-rate one- to four-family residential real estate loans.
At June 30, 2025, we had $53.1 million of loans secured by one- to four-family residential real estate, representing 26.2% of our total loan portfolio, which included no residential mortgages held for sale. We originate both fixed-rate and adjustable-rate one- to four-family residential real estate loans.
Any Wisconsin savings bank meeting certain requirements may, upon approval of the WDFI, establish one or more branch offices in the state of Wisconsin and the states of Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, and Ohio.
Intrastate and Interstate Merger and Branching Activities Wisconsin Law and Regulation . Any Wisconsin savings bank meeting certain requirements may, upon approval of the WDFI, establish one or more branch offices in the state of Wisconsin and the states of Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, and Ohio.
In these circumstances, we follow our customary loan underwriting and approval policies. At June 30, 2024, the outstanding balances of our loan participations where we are not the lead lender totaled $14.5 million, or 7.8% of our loan portfolio, of which $6.3 million were commercial real estate loans and $8.2 million were multifamily real estate loans.
In these circumstances, we follow our customary loan underwriting and approval policies. At June 30, 2025, the outstanding balances of our loan participations where we are not the lead lender totaled $13.1 million, or 6.5% of our loan portfolio, of which $6.2 million were commercial real estate loans and $6.9 million were multifamily real estate loans.
During the year ended June 30, 2024, we originated $4.4 million of one- to four-family residential real estate loans and sold $4.6 million, and during the year ended June 30, 2023, we originated $3.9 million of one- to four-family residential real estate loans and sold $4.0 million.
During the year ended June 30, 2025, we originated $5.9 million of one- to four-family residential real estate loans and sold $6.1 million, and during the year ended June 30, 2024, we originated $4.4 million of one- to four-family residential real estate loans and sold $4.6 million.
Assets which do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are designated as “special mention” or “Watch” by our management. 17 Table of Contents On the basis of our review of our loans our classified and special mention or watch loans at the dates indicated were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, ​ 2024 2023 ​ ​ (In thousands) ​ ​ ​ ​ ​ ​ ​ Classification of Loans: ​ ​ ​ ​ ​ ​ Substandard ​ $ — ​ $ — Doubtful ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — Total Classified Loans ​ $ — ​ $ — Special Mention/Watch ​ $ — ​ $ — ​ Allowance for Credit Losses Allowance for Credit Losses on Loans.
Assets which do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are designated as “special mention” or “Watch” by our management. 17 Table of Contents On the basis of our review of our loans, our classified and special mention or watch loans at the dates indicated were as follows.
The valuation was based on independent appraisals subject to certain discounts less estimated costs to sell. A subsequent independent appraisal was obtained in April 2024 resulting in a new valuation of $2.1 million subject to certain discounts less estimated costs to sell.
The valuation was based on independent appraisals subject to certain discounts less estimated costs to sell. A subsequent independent appraisal was obtained in April 2024 subject to certain discounts less estimated costs to sell.
At all dates below, we had a portfolio of debt securities held to maturity at amortized cost and a portfolio of debt securities available for sale which is reported at fair value. Corporate Debt Securities. At June 30, 2024, we had corporate debt securities totaling $4.6 million, which constituted 70.0% of our securities portfolio.
At all dates below, we had a portfolio of debt securities held to maturity at amortized cost and a portfolio of debt securities available for sale which is reported at fair value. Corporate Debt Securities. At June 30, 2025, we had corporate debt securities totaling $3.9 million, which constituted 68.5% of our securities portfolio.
The allowance for loan losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, ​ ​ ​ 2024 ​ ​ 2023 ​ ​ ​ ​ ​ Percent of ​ ​ ​ ​ ​ ​ Percent of ​ ​ ​ ​ ​ ​ ​ Allowance ​ Percent of ​ ​ ​ ​ Allowance ​ Percent of ​ ​ ​ ​ ​ in Category ​ Loans in ​ ​ ​ ​ in Category ​ Loans in ​ ​ ​ ​ ​ to Total ​ Each ​ ​ ​ ​ to Total ​ Each ​ ​ ​ ​ ​ Allocated ​ Category to ​ ​ ​ ​ Allocated ​ Category to ​ Amount Allowance Total Loans Amount Allowance Total Loans ​ ​ (Dollars in thousands) Real estate loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ $ 1,314 ​ 73.1% ​ 31.2% ​ $ 207 ​ 9.6% ​ 29.8% Multifamily ​ ​ 175 ​ 9.7% ​ 24.3% ​ ​ 365 ​ 16.9% ​ 22.1% Commercial ​ ​ 259 ​ 14.4% ​ 40.1% ​ ​ 1,196 ​ 55.4% ​ 42.3% Construction ​ ​ 28 ​ 1.6% ​ 0.7% ​ ​ 6 ​ 0.3% ​ 1.0% Commercial and industrial loans ​ ​ 16 ​ 0.9% ​ 2.8% ​ ​ 18 ​ 0.8% ​ 3.4% Consumer ​ ​ 5 ​ 0.3% ​ 0.9% ​ ​ 2 ​ 0.1% ​ 1.4% Total allocated allowance ​ ​ 1,797 ​ 100.0% ​ 100.0% ​ ​ 1,794 ​ 83.1% ​ 100.0% Unallocated ​ ​ — ​ — ​ — ​ ​ 365 ​ 16.9% ​ — Total allowance for loan losses ​ $ 1,797 ​ 100.0% ​ 100.0% ​ $ 2,159 ​ 100.0% ​ 100.0% ​ Investment Activities General .
The allowance for loan losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, ​ ​ ​ 2025 ​ ​ 2024 ​ ​ ​ ​ ​ Percent of ​ ​ ​ ​ ​ ​ Percent of ​ ​ ​ ​ ​ ​ ​ Allowance ​ Percent of ​ ​ ​ ​ Allowance ​ Percent of ​ ​ ​ ​ ​ in Category ​ Loans in ​ ​ ​ ​ in Category ​ Loans in ​ ​ ​ ​ ​ to Total ​ Each ​ ​ ​ ​ to Total ​ Each ​ ​ ​ ​ ​ Allocated ​ Category to ​ ​ ​ ​ Allocated ​ Category to ​ Amount Allowance Total Loans Amount Allowance Total Loans ​ ​ (Dollars in thousands) Real estate loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ $ 1,123 ​ 65.7% ​ 27.8% ​ $ 1,314 ​ 73.1% ​ 31.2% Multifamily ​ ​ 171 ​ 10.0% ​ 23.6% ​ ​ 175 ​ 9.7% ​ 24.3% Commercial ​ ​ 390 ​ 22.8% ​ 45.4% ​ ​ 259 ​ 14.4% ​ 40.1% Construction ​ ​ 4 ​ 0.2% ​ 0.4% ​ ​ 28 ​ 1.6% ​ 0.7% Commercial and industrial loans ​ ​ 11 ​ 0.6% ​ 1.9% ​ ​ 16 ​ 0.9% ​ 2.8% Consumer ​ ​ 9 ​ 0.5% ​ 1.0% ​ ​ 5 ​ 0.3% ​ 0.9% Total allowance for loan losses ​ $ 1,708 ​ 100.0% ​ 100.0% ​ $ 1,797 ​ 100.0% ​ 100.0% ​ Investment Activities General .
At June 30, 2024, 34.0% of our one- to four-family residential real estate loans were fixed-rate loans, and 66.0% of such loans were adjustable-rate loans. At June 30, 2024, $3.3 million of our loans secured by one- to four-family residential real estate were in a junior lien position.
At June 30, 2025, 31.6% of our one- to four-family residential real estate loans were fixed-rate loans, and 68.4% of such loans were adjustable-rate loans. At June 30, 2025, $3.3 million of our loans secured by one- to four-family residential real estate were in a junior lien position.
At June 30, 2024, our core deposits, which are deposits other than certificates of deposit, were $105.3 million, representing 60.9% of total deposits. Interest rates, maturity terms, service fees and withdrawal penalties are established on a periodic basis.
At June 30, 2025, our core deposits, which are deposits other than certificates of deposit, were $108.2 million, representing 61.8% of total deposits. Interest rates, maturity terms, service fees and withdrawal penalties are established on a periodic basis.
Consistent with our strategy to grow our loan portfolio and increase our yield, we are focused on increasing our origination of commercial real estate loans. At June 30, 2024, we had $74.3 million in commercial real estate loans, representing 40.1% of our total loan portfolio.
Consistent with our strategy to grow our loan portfolio and increase our yield, we are focused on increasing our origination of commercial real estate loans. At June 30, 2025, we had $91.9 million in commercial real estate loans, representing 45.4% of our total loan portfolio.
Unemployment rates as of June 30, 2024 and June 30, 2023 are set forth in the following table. ​ ​ ​ ​ ​ ​ ​ Region June 2024 June 2023 United States 4.1 % 3.6 % Wisconsin 2.9 % 2.5 % Marathon County 3.0 % 3.2 % Ozaukee County 2.9 % 3.1 % Milwaukee County 4.3 % 4.3 % Waukesha County 3.0 % 3.1 % ​ Major employers in Marathon Bank’s market area are United Health Group, United Medical Resources, Aspirus, Aurora Health Care, Ascension-Wisconsin, GE Healthcare Technologies, Kroger Co., Kohl’s, Northwestern Mutual and Concordia University, Wisconsin.
Unemployment rates as of June 30, 2025 and June 30, 2024 are set forth in the following table. ​ ​ ​ ​ ​ ​ ​ Region June 2025 June 2024 United States 4.1 % 4.1 % Wisconsin 3.2 % 2.9 % Marathon County 2.8 % 3.0 % Ozaukee County 2.9 % 2.9 % Milwaukee County 4.1 % 4.3 % Waukesha County 3.0 % 3.0 % ​ Major employers in Marathon Bank’s market area are United Medical Resources, Stryker, Aspirus, Advocate Aurora Health, Ascension-Wisconsin, GE Healthcare Technologies, Kohl’s, Northwestern Mutual, Rockwell Automation and Siemens.
At June 30, 2024, based on the 20% limitation, our loans-to-one-borrower limit was approximately $6.2 million. At June 30, 2024, our largest loan relationship with one borrower was for $5.8 million, which was secured by commercial real estate properties, with the underlying loans performing in accordance with their original terms on that date.
At June 30, 2025, 14 Table of Contents based on the 20% limitation, our loans-to-one-borrower limit was approximately $7.3 million. At June 30, 2025, our largest loan relationship with one borrower was for $7.1 million, which was secured by commercial real estate properties, with the underlying loans performing in accordance with their original terms on that date.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeITEM 1C: CYBERSECURITY The Company has developed an information security program to assess, identify, and monitor cybersecurity risks. The Company regularly assesses cybersecurity risks arising from the operating environment and attempts to identify the likelihood and severity of the risk and the possible impact of the risk on the Company, its customers, and employees.
Biggest changeITEM 1C: CYBERSECURITY The Company has developed an information security program to assess, identify, and monitor cybersecurity risks. The Company regularly assesses cybersecurity risks arising from the operating environment and attempts to 36 Table of Contents identify the likelihood and severity of the risk and the possible impact of the risk on the Company, its customers, and employees.
However, the sophistication of and risks from cybersecurity threats and incidents continues to increase, and the preventative actions the Company has taken and continues to take to reduce the risk of cybersecurity threats and incidents and protect its systems and information may not successfully protect against all cybersecurity threats and incidents. 37 Table of Contents
However, the sophistication of and risks from cybersecurity threats and incidents continues to increase, and the preventative actions the Company has taken and continues to take to reduce the risk of cybersecurity threats and incidents and protect its systems and information may not successfully protect against all cybersecurity threats and incidents.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeCapitol Dr., Brookfield, WI ​ Owned ​ 2024 ​ ​ 2,026 ​ ​ ​ ​ ​ ​ ​ ​ Land, Weston, WI ​ Owned ​ 2024 ​ ​ 158 ​ We believe that current facilities are adequate to meet our present and foreseeable needs, subject to possible future expansion. ​
Biggest changeCapitol Dr., Brookfield, WI ​ Owned ​ 2024 ​ ​ 2,008 ​ ​ ​ ​ ​ ​ ​ ​ Land, Weston, WI ​ Owned ​ 2024 ​ ​ 158 ​ 37 Table of Contents We believe that current facilities are adequate to meet our present and foreseeable needs, subject to possible future expansion. ​
ITEM 2: PROPERTIES As of June 30, 2024, the net book value of our office properties was $3.6 million (excluding right-to-use-assets). The following table sets forth information regarding our offices.
ITEM 2: PROPERTIES As of June 30, 2025, the net book value of our office properties was $3.4 million (excluding right-to-use-assets). The following table sets forth information regarding our offices.
See Note 5 to the Consolidated Financial Statements for additional information regarding the Company’s property and equipment. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Leased or ​ Year Acquired ​ Net Book Value of Location Owned or Leased Real Property ​ ​ ​ ​ ​ ​ (In thousands) Main Office: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 500 Scott Street, Wausau, WI 54403 ​ Owned ​ 1963 ​ $ 1,035 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Properties: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1133 E Grand Avenue, Rothschild, WI ​ Leased ​ 2009 ​ ​ 40 ​ ​ ​ ​ ​ ​ ​ ​ 307 Third Street, Mosinee, WI ​ Owned ​ 1974 ​ ​ 41 ​ ​ ​ ​ ​ ​ ​ ​ 11315 N.
See Note 5 to the Audited Consolidated Financial Statements for additional information regarding the Company’s property and equipment. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Leased or ​ Year Acquired ​ Net Book Value of Location Owned or Leased Real Property ​ ​ ​ ​ ​ ​ (In thousands) Main Office: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 500 Scott Street, Wausau, WI 54403 ​ Owned ​ 1963 ​ $ 958 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Properties: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1133 E Grand Avenue, Rothschild, WI ​ Leased ​ 2009 ​ ​ 35 ​ ​ ​ ​ ​ ​ ​ ​ 307 Third Street, Mosinee, WI ​ Owned ​ 1974 ​ ​ 44 ​ ​ ​ ​ ​ ​ ​ ​ 11315 N.
Cedurburg Rd, Mequon, WI ​ Leased ​ 2018 ​ ​ 256 ​ ​ ​ ​ ​ ​ ​ ​ 19105 W.
Cedurburg Rd, Mequon, WI ​ Leased ​ 2018 ​ ​ 237 ​ ​ ​ ​ ​ ​ ​ ​ 19105 W.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeAt June 30, 2024, we were not involved in any legal proceedings the outcome of which would be material to our financial condition or results of operations. ​ ITEM 4: MINE SAFETY DISCLOSURE Not applicable. ​ ​ 38 Table of Contents PART II
Biggest changeAt June 30, 2025, we were not involved in any legal proceedings the outcome of which would be material to our financial condition or results of operations. ​ ITEM 4: MINE SAFETY DISCLOSURE Not applicable. ​ ​ 38 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeITEM 5: MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Company’s common stock is quoted on the OTC Pink Marketplace operated by the OTC Markets Group under the symbol “MBBC.” There were 189 shareholders of record (excluding the number of persons or entities holding stock in street name through various brokerage firms) as of September 25, 2024 and 2,135,412 shares of common stock outstanding.
Biggest changeThere were 297 stockholders of record (excluding the number of persons or entities holding stock in street name through various brokerage firms) as of September 25, 2025 and 2,938,698 shares of common stock outstanding.
The payment and amount of any dividend payments will be subject to statutory and regulatory limitations, and will depend upon a number of factors, including the following: regulatory capital requirements; our financial condition and results of operations; our other uses of funds for the long-term value of stockholders; tax considerations; the ability of mutual holding companies to waive dividends; and general economic conditions.
The payment and amount of any dividend payments will be subject to statutory and regulatory limitations, and will depend upon a number of factors, including the following: regulatory capital requirements; our financial condition and results of operations; our other uses of funds for the long-term value of stockholders; tax considerations; and general economic conditions.
No dividends were paid in fiscal 2024 or 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Market Value of Common Stock ​ High Low Quarter Ended September 30, 2023 ​ $ 10.25 ​ $ 8.50 Quarter Ended December 31, 2023 ​ ​ 9.68 ​ ​ 6.75 Quarter Ended March 31, 2024 ​ ​ 9.90 ​ ​ 9.14 Quarter Ended June 30, 2024 ​ ​ 9.59 ​ ​ 8.00 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter Ended September 30, 2022 ​ $ 11.25 ​ $ 10.80 Quarter Ended December 31, 2022 ​ ​ 11.54 ​ ​ 10.56 Quarter Ended March 31, 2023 ​ ​ 11.85 ​ ​ 10.15 Quarter Ended June 30, 2023 ​ ​ 10.85 ​ ​ 8.90 ​ Dividends We do not currently intend to pay cash dividends to our stockholders.
No dividends were paid in fiscal 2025 or 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Market Value of Common Stock ​ High Low Quarter Ended September 30, 2024 ​ $ 6.60 ​ $ 6.38 Quarter Ended December 31, 2024 ​ ​ 10.20 ​ ​ 6.42 Quarter Ended March 31, 2025 ​ ​ 11.25 ​ ​ 9.34 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter Ended September 30, 2023 ​ $ 10.25 ​ $ 8.50 Quarter Ended December 31, 2023 ​ ​ 9.68 ​ ​ 6.75 Quarter Ended March 31, 2024 ​ ​ 9.90 ​ ​ 9.14 Quarter Ended June 30, 2024 ​ ​ 9.59 ​ ​ 8.00 ​ Dividends We do not currently intend to pay cash dividends to our stockholders.
All shares of common stock repurchased will be retired. 39 Table of Contents Set forth below is the share repurchase activity for the three months ended June 30, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Approximate Number ​ ​ ​ ​ ​ ​ ​ ​ Total Number of Shares ​ of Shares That ​ ​ ​ ​ ​ ​ ​ ​ Repurchased as Part of ​ May Yet Be Purchased ​ ​ Total Number of Shares ​ ​ Average Price Paid ​ Publicly Announced Plans ​ Under the Plans or Period Repurchased ​ Per Share Or Programs Programs April 1-30, 2024 ​ 10,000 ​ ​ $ 9.35 ​ 10,000 ​ 97,875 May 1-31, 2024 ​ 200 (1) ​ $ 8.85 ​ — ​ 97,875 June 1-30, 2024 ​ 6,882 (1) ​ $ 8.40 ​ 5,000 ​ 92,875 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ 17,082 ​ ​ ​ ​ ​ 15,000 ​ ​ (1) This column includes the deemed surrender to us of 2,082 shares of common stock to satisfy tax withholding obligations in connection with the vesting of employee restricted stock. ​ ITEM 6: RESERVED ​
Set forth below is the share repurchase activity for the three months ended June 30, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Approximate Number ​ ​ ​ ​ ​ ​ ​ ​ Total Number of Shares ​ of Shares That ​ ​ ​ ​ ​ ​ ​ ​ Repurchased as Part of ​ May Yet Be Purchased ​ ​ Total Number of Shares ​ ​ Average Price Paid ​ Publicly Announced Plans ​ Under the Plans or Period Repurchased ​ Per Share Or Programs Programs April 1-30, 2025 ​ — ​ ​ $ - ​ — ​ — May 1-31, 2025 ​ 325 (1) ​ $ 10.03 ​ — ​ — June 1-30, 2025 ​ 2,904 (1) ​ $ 9.99 ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ 3,229 ​ ​ ​ ​ ​ — ​ — ​ (1) This column reflects the deemed surrender to us of 3,229 shares of common stock to satisfy tax withholding obligations in connection with the vesting of employee restricted stock. ​ 39 Table of Contents ITEM 6: RESERVED ​
The following table sets forth the quarterly high and low prices for a share of the Company’s common stock for fiscal years 2024 and 2023. The information was obtained from the OTC Pink Marketplace. The quotations reflect inter-dealer prices, without retail mark-up, markdown or commission and may not represent actual transactions.
The following table sets forth the quarterly high and low prices for a share of the Company’s common stock prior to the Company listing its shares on the Nasdaq Capital Market on April 22, 2025. The information was obtained from the OTCID Market. The quotations reflect inter-dealer prices, without retail mark-up, markdown or commission and may not represent actual transactions.
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Shares are to be repurchased in open market or private transactions, through block trades, or pursuant to any trading plan that may have been adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission.
Added
ITEM 5: MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Company’s common stock trades on the Nasdaq Capital Market under the symbol “MBBC”.
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The stock repurchase plan was terminated on April 21, 2025 with 87,875 shares yet to be repurchased.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeSelected Financial Data The following selected consolidated financial data sets forth certain financial highlights of the Company and should be read in conjunction with the audited consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K for 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, ​ 2024 2023 ​ (In thousands) Selected Financial Condition Data: ​ ​ ​ ​ ​ ​ Total assets ​ $ 219,234 ​ $ 238,779 Cash, cash equivalents and interest-bearing deposits in other financial institutions ​ ​ 10,672 ​ ​ 15,537 Debt securities available for sale ​ ​ 6,607 ​ ​ 8,922 Debt securities held to maturity ​ ​ 510 ​ ​ 516 Loans receivable, net ​ ​ 183,448 ​ ​ 197,714 Foreclosed assets (OREO), net ​ ​ 1,397 ​ ​ 2,335 Federal Home Loan Bank stock, at cost ​ ​ 1,329 ​ ​ 770 Bank owned life insurance ​ ​ 8,973 ​ ​ 8,724 Premises and equipment, net ​ ​ 4,086 ​ ​ 2,128 Deferred tax asset ​ ​ 580 ​ ​ 487 Deposits ​ ​ 172,981 ​ ​ 197,254 Federal Home Loan Bank (FHLB) advances ​ ​ 13,000 ​ ​ 8,000 Stockholders' Equity ​ ​ 31,295 ​ ​ 31,280 ​ 44 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years ​ ​ Ended June 30, ​ 2024 2023 ​ ​ ​ (In thousands) Selected Operating Data: ​ ​ ​ ​ ​ ​ Interest income ​ $ 9,431 ​ $ 8,978 Interest expense ​ ​ 3,591 ​ ​ 2,278 Net interest income ​ ​ 5,840 ​ ​ 6,700 Provision for (recovery of) credit losses ​ ​ (190) ​ ​ — Net interest income after provision for (recovery of) credit losses ​ ​ 6,030 ​ ​ 6,700 Non-interest income ​ ​ 726 ​ ​ 1,301 Non-interest expense ​ ​ 7,002 ​ ​ 5,884 Income (loss) before income taxes (benefit) ​ ​ (246) ​ ​ 2,117 Provision for (benefit from) income taxes ​ ​ (59) ​ ​ 445 Net income (loss) ​ $ (187) ​ $ 1,672 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Years ​ ​ ​ Ended June 30, ​ ​ 2024 ​ 2023 ​ Performance Ratios: ​ ​ ​ ​ ​ ​ ​ ​ Return (loss) on average assets ​ ​ (0.08) % ​ ​ 0.71 % Return (loss) on average equity ​ ​ (0.62) % ​ ​ 5.91 % Interest rate spread (1) ​ ​ 2.40 % ​ ​ 2.81 % Net interest margin (2) ​ ​ 2.75 % ​ ​ 3.04 % Non-interest expenses to average assets ​ ​ 3.00 % ​ ​ 2.50 % Efficiency ratio (3) ​ ​ 106.64 % ​ ​ 73.54 % Average interest-earning assets to average interest-bearing liabilities ​ ​ 120.56 % ​ ​ 122.66 % Book value per share ​ $ 14.62 ​ ​ $ 14.50 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital Ratios (4): ​ ​ ​ ​ ​ ​ ​ ​ Average equity to average assets ​ ​ 13.00 % ​ ​ 12.01 % Tier 1 capital to average assets ​ ​ 13.04 % ​ ​ 12.02 % ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset Quality Ratios: ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses as a percentage of total loans ​ ​ 0.97 % ​ ​ 1.17 % Allowance for credit losses as a percentage of non-performing loans ​ ​ — % ​ ​ — % Net (charge-offs) recoveries to average outstanding loans during the year ​ ​ — % ​ ​ (0.02) % Non-performing loans as a percentage of total loans ​ ​ — % ​ ​ — % Non-performing loans as a percentage of total assets ​ ​ — % ​ ​ — % Total non-performing assets as a percentage of total assets ​ ​ 0.63 % ​ ​ 0.97 % ​ ​ ​ ​ ​ ​ ​ ​ ​ Other: ​ ​ ​ ​ ​ ​ ​ ​ Number of offices ​ ​ 5 ​ ​ ​ 4 ​ Number of full-time equivalent employees ​ ​ 35 ​ ​ ​ 35 ​ (1) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of interest-bearing liabilities.
Biggest changeThe Standard also establishes a fair value hierarchy, which prioritizes the valuation inputs into three broad levels: ● Level 1 inputs consist of quoted prices in active markets for identical assets that the reporting entity has the ability to access at the measurement date. ● Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the related asset. ● Level 3 inputs are unobservable inputs related to the asset. ​ 44 Table of Contents Selected Financial Data The following selected consolidated financial data sets forth certain financial highlights of the Company and should be read in conjunction with the audited consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K for 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, ​ 2025 2024 ​ (In thousands) Selected Financial Condition Data: ​ ​ ​ ​ ​ ​ Total assets ​ $ 238,835 ​ $ 219,296 Cash, cash equivalents and interest-bearing deposits in other financial institutions ​ ​ 14,623 ​ ​ 10,672 Debt securities available for sale ​ ​ 5,201 ​ ​ 6,607 Debt securities held to maturity ​ ​ 484 ​ ​ 510 Loans receivable, net ​ ​ 200,796 ​ ​ 183,448 Foreclosed assets (OREO), net ​ ​ 996 ​ ​ 1,375 Federal Home Loan Bank stock, at cost ​ ​ 1,329 ​ ​ 1,329 Bank owned life insurance ​ ​ 9,243 ​ ​ 8,973 Premises and equipment, net ​ ​ 3,884 ​ ​ 4,086 Deposits ​ ​ 175,241 ​ ​ 172,981 Federal Home Loan Bank (FHLB) advances ​ ​ 15,000 ​ ​ 13,000 Stockholders' Equity ​ ​ 45,709 ​ ​ 31,295 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years ​ ​ Ended June 30, ​ 2025 2024 ​ ​ ​ (In thousands) Selected Operating Data: ​ ​ ​ ​ ​ ​ Interest income ​ $ 9,551 ​ $ 9,431 Interest expense ​ ​ 3,508 ​ ​ 3,591 Net interest income ​ ​ 6,043 ​ ​ 5,840 Provision for (recovery of) credit losses ​ ​ (94) ​ ​ (190) Net interest income after provision for (recovery of) credit losses ​ ​ 6,137 ​ ​ 6,030 Non-interest income ​ ​ 749 ​ ​ 726 Non-interest expense ​ ​ 6,875 ​ ​ 7,002 Income (loss) before income taxes (benefit) ​ ​ 11 ​ ​ (246) Provision for (benefit from) income taxes ​ ​ (31) ​ ​ (59) Net income (loss) ​ $ 42 ​ $ (187) ​ 45 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Years ​ ​ ​ Ended June 30, ​ ​ 2025 ​ 2024 ​ Performance Ratios: ​ ​ ​ ​ ​ ​ ​ ​ Return (loss) on average assets ​ ​ 0.02 % ​ ​ (0.08) % Return (loss) on average equity ​ ​ 0.14 % ​ ​ (0.62) % Interest rate spread (1) ​ ​ 2.40 % ​ ​ 2.40 % Net interest margin (2) ​ ​ 2.84 % ​ ​ 2.75 % Non-interest expenses to average assets ​ ​ 3.07 % ​ ​ 3.00 % Efficiency ratio (3) ​ ​ 101.21 % ​ ​ 106.64 % Average interest-earning assets to average interest-bearing liabilities ​ ​ 122.81 % ​ ​ 120.56 % Book value per share ​ $ 15.55 ​ ​ $ 10.65 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital Ratios (4): ​ ​ ​ ​ ​ ​ ​ ​ Average equity to average assets ​ ​ 13.87 % ​ ​ 13.00 % Tier 1 capital to average assets ​ ​ 15.21 % ​ ​ 13.04 % ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset Quality Ratios: ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses as a percentage of total loans ​ ​ 0.84 % ​ ​ 0.97 % Allowance for credit losses as a percentage of non-performing loans ​ ​ 2,549.25 % ​ ​ — % Net (charge-offs) recoveries to average outstanding loans during the year ​ ​ — % ​ ​ — % Non-performing loans as a percentage of total loans ​ ​ 0.03 % ​ ​ — % Non-performing loans as a percentage of total assets ​ ​ 0.03 % ​ ​ — % Total non-performing assets as a percentage of total assets ​ ​ 0.45 % ​ ​ 0.63 % ​ ​ ​ ​ ​ ​ ​ ​ ​ Other: ​ ​ ​ ​ ​ ​ ​ ​ Number of offices ​ ​ 5 ​ ​ ​ 5 ​ Number of full-time equivalent employees ​ ​ 35 ​ ​ ​ 35 ​ (1) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of interest-bearing liabilities.
Such obligations include data processing services, operating leases for premises and equipment, agreements with respect to borrowed funds and deposit liabilities. Recent Accounting Pronouncements Please refer to Note 1 of the notes to consolidated the financial statements beginning on page 60 for a description of recent accounting pronouncements that may affect our financial condition and results of operations.
Such obligations include data processing services, operating leases for premises and equipment, agreements with respect to borrowed funds and deposit liabilities. Recent Accounting Pronouncements Please refer to Note 1 of the notes to the audited consolidated the financial statements beginning on page 60 for a description of recent accounting pronouncements that may affect our financial condition and results of operations.
To the best of our knowledge, we have recorded our best estimate of expected losses in the loan portfolio and for unfunded commitments at June 30, 2024. However, future changes in the factors described above, including, but not limited to, actual loss experience with respect to our loan portfolio, could result in material increases in our provision for credit losses.
To the best of our knowledge, we have recorded our best estimate of expected losses in the loan portfolio and for unfunded commitments at June 30, 2025. However, future changes in the factors described above, including, but not limited to, actual loss experience with respect to our loan portfolio, could result in material increases in our provision for credit losses.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. 47 Table of Contents Rate/Volume Analysis The following table presents the effects of changing rates and volumes on our net interest income for the years indicated.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. 48 Table of Contents Rate/Volume Analysis The following table presents the effects of changing rates and volumes on our net interest income for the years indicated.
A valuation allowance, if needed, reduces deferred tax assets to the amounts expected to be realized. 40 Table of Contents Summary of Significant Accounting Estimates The discussion and analysis of the financial condition and results of operations are based on our audited consolidated financial statements, which are prepared in conformity with U.S. GAAP.
A valuation allowance, if needed, reduces deferred tax assets to the amounts expected to be realized. Summary of Significant Accounting Estimates The discussion and analysis of the financial condition and results of operations are based on our audited consolidated financial statements, which are prepared in conformity with U.S. GAAP.
Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. 2. Changes in the value of underlying collateral for collateral dependent loans. 3. Nature and volume of the portfolio and terms of loans. 4. Volume and severity of past due, classified and nonaccrual loans as well as other loan modifications. 41 Table of Contents 5.
Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. 2. Changes in the value of underlying collateral for collateral dependent loans. 3. Nature and volume of the portfolio and terms of loans. 4. Volume and severity of past due, classified and nonaccrual loans as well as other loan modifications. 5.
Based on our deposit 51 Table of Contents retention experience, current pricing strategy and regulatory restrictions, we anticipate that a substantial portion of maturing time deposits will be retained, and that we can supplement our funding with borrowings in the event that we allow these deposits to run off at maturity.
Based on our deposit retention experience, current pricing strategy and regulatory restrictions, we anticipate that a substantial portion of maturing time deposits will be retained, and that we can supplement our funding with borrowings in the event that we allow these deposits to run off at maturity.
This includes, but is not limited to, the extent to which fair value is less than amortized cost, the current interest rate environment, changes to rating of security or security issuer, and adverse conditions specifically related to the security among other factors.
This 43 Table of Contents includes, but is not limited to, the extent to which fair value is less than amortized cost, the current interest rate environment, changes to rating of security or security issuer, and adverse conditions specifically related to the security among other factors.
Net cash flows provided by (used in) investing activities, which consists primarily of disbursements for loan originations, the purchase of securities and the purchase of bank owned life insurance, offset by principal collections on loans, proceeds from the sale of securities and proceeds from maturing securities and pay downs on securities, was $17.7 million provided by investing activities for the year ended June 30, 2024 compared to $14.4 million used in investing activities for the year ended June 30, 2023.
Net cash flows provided by (used in) investing activities, which consists primarily of disbursements for loan originations, the purchase of securities and the purchase of bank owned life insurance, offset by principal collections on loans, proceeds from the sale of securities and proceeds from maturing securities and pay downs on securities, was $15.6 million used in investing activities for the year ended June 30, 2025 compared to $17.7 million provided by investing activities for the year ended June 30, 2024.
The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period. Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $417,000 and $2.0 million for the years ended June 30, 2024 and 2023, respectively.
The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period. Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $1.4 million and $417,000 for the years ended June 30, 2025 and 2024, respectively.
At June 30, 2024, Marathon Bank was classified as “well capitalized” for regulatory capital purposes. See Note 16 in the Notes to the Audited Consolidated Financial Statements. Off-Balance Sheet Arrangements and Aggregate Contractual Obligations Commitments.
At June 30, 2025, Marathon Bank was classified as “well capitalized” for regulatory capital purposes. See Note 16 in the Notes to the Audited Consolidated Financial Statements. 52 Table of Contents Off-Balance Sheet Arrangements and Aggregate Contractual Obligations Commitments.
These predictions align with the Bank’s historic charge-off history over the past 8-10 years. The allowance for credit losses was $1.8 million, or 0.97%, of loans outstanding at June 30, 2024 and $2.2 million, or 1.08%, of loans outstanding at June 30, 2023.
These predictions align with the Bank’s historic charge-off history over the past 8-10 years. The allowance for credit losses was $1.7 million, or 0.84%, of loans outstanding at June 30, 2025 and $1.8 million, or 0.97%, of loans outstanding at June 30, 2024.
The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an “emerging growth company” we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We intend to take advantage of the benefits of this extended transition period.
The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an “emerging growth company” we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies.
Such commitments are subject to the same credit policies and approval process accorded to loans we make. At June 30, 2024, we had outstanding commitments to originate loans of $1.3 million, and outstanding commitments to sell loans of $418,000. We anticipate that we will have sufficient funds available to meet our current lending commitments.
Such commitments are subject to the same credit policies and approval process accorded to loans we make. At June 30, 2025, we had outstanding commitments to originate loans of $4.8 million, and outstanding commitments to sell loans of $329,000. We anticipate that we will have sufficient funds available to meet our current lending commitments.
The evaluation also considers the following risk characteristics of each loan portfolio segment: ● One-to- four-family residential real estate loans carry risks associated with the continued creditworthiness of the borrower and changes in the value of the collateral. ● Commercial real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because repayment of these loans may be dependent upon the profitability and cash flows of the business or project. ● Construction loans carry risks that the project may not be finished according to schedule, the project may not be finished according to budget, and the value of the collateral may, at any point in time, be less than the principal amount of the loan.
Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for credit losses calculation for our loan portfolio. 41 Table of Contents The evaluation also considers the following risk characteristics of each loan portfolio segment: ● One-to- four-family residential real estate loans carry risks associated with the continued creditworthiness of the borrower and changes in the value of the collateral. ● Commercial real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because repayment of these loans may be dependent upon the profitability and cash flows of the business or project. ● Construction loans carry risks that the project may not be finished according to schedule, the project may not be finished according to budget, and the value of the collateral may, at any point in time, be less than the principal amount of the loan.
Time deposits that are scheduled to mature in one year or less from June 30, 2024 totaled $44.8 million. Management expects that a substantial portion of the maturing time deposits will be renewed.
Time deposits that are scheduled to mature in one year or less at June 30, 2025 totaled $46.2 million. Management expects that a substantial portion of the maturing time deposits will be renewed.
The allowance for credit losses on loans that are individually evaluated may be estimated based on their expected cash flows, or, in the case of loans for which repayment is expected substantially through the operation or sale of collateral when the borrower is experiencing financial difficulty, may be measured based on the fair value of the collateral less estimated costs to sell. 42 Table of Contents As an integral part of their examination process, various regulatory agencies review the allowance for credit losses on loans as well.
The allowance for credit losses on loans that are individually evaluated may be estimated based on their expected cash flows, or, in the case of loans for which repayment is expected substantially through the operation or sale of collateral when the borrower is experiencing financial difficulty, may be measured based on the fair value of the collateral less estimated costs to sell.
Such agencies may require that changes in the allowance for credit losses on loans be recognized when such regulatory credit evaluations differ from those of management based on information available to the regulators at the time of their examinations. Income Taxes .
As an integral part of their examination process, various regulatory agencies review the allowance for credit losses on loans as well. Such agencies may require that changes in the allowance for credit losses on loans be recognized when such regulatory credit evaluations differ from those of management based on information available to the regulators at the time of their examinations.
The Company’s portfolio of held to maturity securities consists of U.S. agency residential mortgage-backed securities which are highly rated by major rating agencies and have a long history of no credit losses.
Accrued interest receivable on AFS securities is excluded from the estimate of credit losses. Allowance for Credit Losses on Held to Maturity (“HTM”) Securities . The Company’s portfolio of held to maturity securities consists of U.S. agency residential mortgage-backed securities which are highly rated by major rating agencies and have a long history of no credit losses.
In estimating the net amount expected to be collected for held to maturity securities in an unrealized loss position, a historical loss based method is utilized. 43 Table of Contents Fair Value Measurements .
In estimating the net amount expected to be collected for held to maturity securities in an unrealized loss position, a historical loss based method is utilized. Foreclosed Assets.
Net cash provided by (used in) financing activities, consisting of activity in deposit accounts and borrowings was $19.4 million used in financing activities compared to $15.8 million provided by financing activities for the years ended June 30, 2024 and 2023, respectively. We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis.
Net cash provided by (used in) financing activities, consisting of activity in stockholders’ equity accounts (capital raise), deposit accounts and borrowings was $18.0 million provided by financing activities compared to $19.4 million used in financing activities for the years ended June 30, 2025 and 2024, respectively. We are committed to maintaining a strong liquidity position.
(2) Represents net interest income as a percentage of average interest-earning assets. (3) Represents non-interest expenses divided by the sum of net interest income and non-interest income. (4) Capital ratios are for the Bank only.
(2) Represents net interest income as a percentage of average interest-earning assets. (3) Represents non-interest expenses divided by the sum of net interest income and non-interest income. (4) Capital ratios are for the Bank only. As of June 30, 2025 and 2024, the Bank elected to adopt the Community Bank Leverage Ratio Framework.
Income tax benefit was $59,000 for the year ended June 30, 2024, a decrease of $504,000, as compared to income tax expense of $445,000 for the year ended June 30, 2023.
Income tax benefit was $32,000 for the year ended June 30, 2025, a decrease of $27,000, as compared to an income tax benefit of $59,000 for the year ended June 30, 2024.
The average yield on the loan portfolio increased by 28 basis points from 4.18% for the year ended June 30, 2023 to 4.46% for the year ended June 30, 2024 as a result of the high interest rate environment.
The average yield on the loan portfolio increased by 27 basis points from 4.46% for the year ended June 30, 2024 to 4.73% for the year ended June 30, 2025 as a result of higher interest rates.
The Bank also has $25.0 million available to borrow from the Federal Reserve Bank when pledging acceptable assets and an unsecured Federal Funds purchasing limit of $5.0 million with the Bank’s correspondent bank. There were no borrowings under these arrangements at June 30, 2024.
The Bank also has $17.5 million available to borrow from the Federal Reserve Bank which is pledged by multi-family loans and an unsecured Federal Funds purchasing limit of $5.0 million with the Bank’s correspondent bank. There were no borrowings under these arrangements at June 30, 2025.
Interest paid on FHLB borrowings increased $545,000, from $103,000 for the year ended June 30, 2023 to $648,000 for the year ended June 30, 2024.
Interest paid on FHLB borrowings decreased $179,000, from $648,000 for the year ended June 30, 2024 to $469,000 for the year ended June 30, 2025.
We anticipate that we will have sufficient funds to meet our current funding commitments.
We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments.
The decrease in income tax expense was primarily the result of a decrease in income (loss) before income taxes of $2.4 million which was offset by a change in Wisconsin tax law that provides for a subtraction from the Bank’s state taxable income for loan and fee interest income from certain commercial and agricultural loans.
This decrease was offset by a Wisconsin income tax provision of $112,000 related to a change in Wisconsin tax law that provides for a subtraction from the Bank’s state taxable income for loan and fee interest income from certain commercial and agricultural loans.
Interest expense on deposits increased $766,000, or 35.2%, to $2.9 million for the year ended June 30, 2024 from $2.2 million for the year ended June 30, 2023 due to an increase in interest expense on all deposit categories except savings deposits as a result of an increase in the average rates paid on all deposit categories except savings deposits offset by a decrease in the average balances of all deposit categories.
Interest expense on deposits increased $96,000, or 3.3%, to $3.0 million for the year ended June 30, 2025 as compared to $2.9 million for the year ended June 30, 2024 due to an increase in the average rate paid on all deposit categories (except savings deposits which remained unchanged), offset by a decrease in the average balances of all deposit categories except for demand, NOW and money market deposits.
We also have the ability to borrow from the Federal Home Loan Bank of Chicago. At June 30, 2024, we had a $79.5 million line of credit with the Federal Home Loan Bank of Chicago, which had $13.0 million in borrowings outstanding as of that date.
At June 30, 2025, we had a $82.8 million line of credit with the Federal Home Loan Bank of Chicago, which had $15.0 million in borrowings outstanding as of that date.
The amount of the allowance is based on estimates and the ultimate losses may vary from such estimates as more information becomes available or conditions change.
The amount of the allowance is based on estimates and the ultimate losses may vary from such estimates as more information becomes available or conditions change. We assess the allowance for credit losses on a quarterly basis and make provisions for (recovery of) credit losses in order to maintain the allowance.
The increase in the average yield on interest earning assets for the year ended June 30, 2024 compared to the year ended June 30, 2023 was primarily due to an increase in market interest rates.
The increase in the average yield on interest earning assets for the year ended June 30, 2025 compared to the year ended June 30, 2024 was primarily due to an increase in the average yield of loans, the Bank’s largest interest-earning asset category. ​ Provision for (Recovery of) Credit Losses.
Accordingly, our financial statements may not be comparable to companies that comply with such new or revised accounting standards. The following represent our significant accounting estimates: Allowance for Credit Losses on Loans. The allowance for credit losses on loans is established through charges to earnings in the form of a provision for credit losses.
We intend to take advantage of the benefits of this extended transition period. 40 Table of Contents Accordingly, our financial statements may not be comparable to companies that comply with such new or revised accounting standards. The following represent our significant accounting estimates: Allowance for Credit Losses on Loans.
Loan interest income increased by $455,000, or 5.6%, to $8.6 million for the year ended June 30, 2024 from $8.2 million for the year ended June 30, 2023.
Net interest income increased by $203,000, or 3.8%, to $6.0 million for the year ended June 30, 2025 from $5.8 million for the year ended June 30, 2024. Net interest-earning assets increased by $1.8 million, or 4.8%, to $38.0 million for the year ended June 30, 2025 from $36.2 million for the year ended June 30, 2024.
Interest income increased by $453,000, or 5.0%, to $9.4 million for the year ended June 30, 2024 compared to $9.0 million for the year ended June 30, 2023 primarily due to an increase in loan interest income associated with an increase in the average yield on loans offset by a slight decrease in the average balance of the loan portfolio.
Other interest income increased due to an increase in the average balance of cash and cash equivalents offset by a decrease in the average yield on cash and cash equivalents. Loan interest income increased slightly by $11,000, or 0.1%, for the year ended June 30, 2025 as compared to the year ended June 30, 2024.
The decrease in net income (loss) for the year ended June 30, 2024 was primarily attributable to an increase in expenses associated with foreclosed assets of $1.0 million, a decrease of $859,000 in net-interest income, and a decrease of $576,000 in non-interest income.
Net income was $42,000 for the year ended June 30, 2025, an increase of $229,000, or 122.7%, from a net loss of $187,000 for the year ended June 30, 2024. The increase in net income was primarily attributable to an increase in net interest income of $203,000 and a decrease in non-interest expenses of $128,000.
Deferred loan fees accreted to interest income totaled $42,000 and $50,000 for the years ended June 30, 2024 and 2023, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended June 30, ​ ​ 2024 ​ 2023 ​ ​ Average ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ Average ​ ​ Outstanding ​ ​ ​ ​ Yield/Rate ​ Outstanding ​ ​ ​ ​ Yield/Rate ​ Balance Interest ​ Balance Interest ​ ​ ​ (Dollars in thousands) ​ Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans ​ $ 193,501 ​ $ 8,637 4.46 % $ 195,680 ​ $ 8,182 4.18 % Debt securities ​ 10,751 ​ 345 3.21 % 11,102 ​ 292 2.63 % Cash and cash equivalents ​ 7,017 ​ 370 5.27 % 12,853 ​ 480 3.73 % Other ​ 1,097 ​ 79 7.20 % 666 ​ 24 3.60 % Total interest-earning assets ​ 212,366 ​ 9,431 4.44 % 220,301 ​ 8,978 4.08 % Noninterest-earning assets ​ 21,215 ​ ​ ​ 15,146 ​ ​ Total assets ​ $ 233,581 ​ ​ ​ ​ $ 235,447 ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ Demand, NOW and money market deposits ​ $ 44,036 ​ 612 1.39 % $ 54,130 ​ 506 0.93 % Savings deposits ​ 40,109 ​ 58 0.14 % 44,501 ​ 61 0.14 % Certificates of deposit ​ 75,133 ​ 2,273 3.03 % 77,707 ​ 1,609 2.07 % Total interest-bearing deposits ​ 159,278 ​ 2,943 1.85 % 176,338 ​ 2,176 1.23 % FHLB advances and other borrowings ​ 16,865 ​ 648 3.84 % 3,272 ​ 103 3.15 % Total interest-bearing liabilities ​ 176,143 ​ 3,591 2.04 % 179,610 ​ 2,279 1.27 % Non-interest-bearing demand deposits ​ 25,048 ​ ​ ​ 25,829 ​ ​ Other non-interest-bearing liabilities ​ 2,018 ​ ​ ​ 1,726 ​ ​ Total liabilities ​ 203,209 ​ ​ ​ 207,165 ​ ​ Total stockholders' equity ​ 30,372 ​ ​ ​ 28,282 ​ ​ Total liabilities and stockholders' equity ​ $ 233,581 ​ ​ ​ ​ $ 235,447 ​ ​ Net interest income ​ ​ ​ ​ $ 5,840 ​ ​ ​ $ 6,699 ​ Net interest rate spread (1) ​ ​ ​ ​ ​ 2.40 % ​ ​ 2.81 % Net interest-earning assets (2) ​ $ 36,223 ​ ​ ​ ​ ​ $ 40,691 ​ Net interest margin (3) ​ ​ ​ ​ ​ 2.75 % ​ ​ 3.04 % Average interest-earning assets to interest-bearing liabilities ​ 120.56 % ​ ​ ​ 122.66 % ​ (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
Deferred loan fees accreted to interest income totaled $52,000 and $42,000 for the years ended June 30, 2025 and 2024, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended June 30, ​ ​ 2025 ​ 2024 ​ ​ Average ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ Average ​ ​ Outstanding ​ ​ ​ ​ Yield/Rate ​ Outstanding ​ ​ ​ ​ Yield/Rate ​ Balance Interest ​ Balance Interest ​ ​ ​ (Dollars in thousands) ​ Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans ​ $ 183,039 ​ $ 8,649 4.73 % $ 193,501 ​ $ 8,637 4.46 % Debt securities ​ 6,393 ​ 169 2.64 % 8,236 ​ 214 2.60 % Cash and cash equivalents ​ 13,594 ​ 631 4.64 % 9,532 ​ 501 5.25 % Other ​ 1,329 ​ 102 7.67 % 1,097 ​ 79 7.20 % Total interest-earning assets ​ 204,355 ​ 9,551 4.67 % 212,366 ​ 9,431 4.44 % Noninterest-earning assets ​ 19,488 ​ ​ ​ 21,215 ​ ​ Total assets ​ $ 223,843 ​ ​ ​ ​ $ 233,581 ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ Demand, NOW and money market deposits ​ $ 48,069 ​ 732 1.52 % $ 44,036 ​ 612 1.39 % Savings deposits ​ 38,405 ​ 55 0.14 % 40,109 ​ 58 0.14 % Certificates of deposit ​ 67,787 ​ 2,252 3.32 % 75,133 ​ 2,273 3.03 % Total interest-bearing deposits ​ 154,261 ​ 3,039 1.97 % 159,278 ​ 2,943 1.85 % FHLB advances and other borrowings ​ 12,137 ​ 469 3.86 % 16,865 ​ 648 3.84 % Total interest-bearing liabilities ​ 166,398 ​ 3,508 2.11 % 176,143 ​ 3,591 2.04 % Non-interest-bearing demand deposits ​ 24,293 ​ ​ ​ 25,048 ​ ​ Other non-interest-bearing liabilities ​ 2,112 ​ ​ ​ 2,018 ​ ​ Total liabilities ​ 192,803 ​ ​ ​ 203,209 ​ ​ Total stockholders' equity ​ 31,040 ​ ​ ​ 30,372 ​ ​ Total liabilities and stockholders' equity ​ $ 223,843 ​ ​ ​ ​ $ 233,581 ​ ​ Net interest income ​ ​ ​ ​ $ 6,043 ​ ​ ​ $ 5,840 ​ Net interest rate spread (1) ​ ​ ​ ​ ​ 2.40 % ​ ​ 2.40 % Net interest-earning assets (2) ​ $ 37,957 ​ ​ ​ ​ ​ $ 36,223 ​ Net interest margin (3) ​ ​ ​ ​ ​ 2.84 % ​ ​ 2.75 % Average interest-earning assets to interest-bearing liabilities ​ 122.81 % ​ ​ ​ 120.56 % ​ (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
The increase in interest paid on borrowings was due to the average balance of FHLB advances increasing by $13.6 million and an increase in the average rate paid on borrowings of 69 basis points from 3.15% for the year ended June 30, 2023 to 3.84% for the year ended June 30, 2024.
Offsetting the decrease in the average balance was an increase in the average rate paid on borrowings of two basis points from 3.84% for the year ended June 30, 2024 to 3.86% for the year ended June 30, 2025 due to an increase in borrowing costs. Net Interest Income.
The average balance of the loan portfolio decreased by $2.2 million, or 1.1%, from $195.7 million for the year ended June 30, 2023 to $193.5 million for the year ended June 30, 2024. The decrease in the average balance of the loan portfolio was primarily due to repayments exceeding new loan growth.
The decrease in the average balance of the loan portfolio was primarily related to repayments exceeding new loan growth. 49 Table of Contents Debt securities interest income decreased by $45,000, or 21.2%, to $169,000 for the year ended June 30, 2025 from $214,000 for the year ended June 30, 2024 due to a decrease of $1.8 million in the average balance of debt securities to $6.4 million for the year ended June 30, 2025 from $8.2 million for the year ended June 30, 2024.
Total cash and cash equivalents decreased $1.3 million, or 11.1%, to $10.5 million at June 30, 2024 from $11.8 million at June 30, 2023, primarily due to a decrease in total deposits of $24.3 million offset by an increase in FHLB borrowings of $5.0 million, a decrease in net loans of $14.3 million, a decrease in interest bearing deposits held in other financial institutions of $3.6 million, and finally, a decrease in debt securities available for sale of $2.3 million.
Total cash and cash equivalents increased $3.9 million, or 37.4%, to $14.4 million at June 30, 2025 from $10.5 million at June 30, 2024, primarily due to the net proceeds raised from the Company’s Conversion of $13.9 million, an increase in deposits of $2.2 million, or 1.3%, an increase in borrowings of $2.0 million, or 15.4% and a decrease in debt securities available for sale of $1.4 million, or 21.3%.
Non-interest expenses information is as follows. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ Change ​ 2024 2023 Amount Percent ​ (Dollars in thousands) ​ Salaries and employee benefits ​ $ 3,082 ​ $ 3,296 ​ $ (214) (6.5) % Occupancy and equipment ​ 858 ​ 731 ​ 127 17.4 % Data processing and office ​ 449 ​ 401 ​ 48 12.0 % Professional fees ​ 755 ​ 712 ​ 43 6.0 % Marketing expenses ​ 61 ​ 87 ​ (26) (29.9) % Debit card expenses ​ ​ 96 ​ ​ 90 ​ ​ 6 ​ 6.7 % Directors fees ​ ​ 108 ​ ​ 89 ​ ​ 19 ​ 21.3 % Foreclosed assets, net ​ ​ 1,035 ​ ​ — ​ ​ 1,035 ​ 100.0 % Other ​ 558 ​ 478 ​ 80 16.7 % Total non-interest expenses ​ $ 7,002 ​ $ 5,884 ​ $ 1,118 19.0 % 50 Table of Contents Non-interest expenses were $7.0 million for the year ended June 30, 2024 compared to $5.9 million for the year ended June 30, 2023.
Non-interest expenses information is as follows. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ Change ​ 2025 2024 Amount Percent ​ (Dollars in thousands) ​ Salaries and employee benefits ​ $ 3,646 ​ $ 3,082 ​ $ 564 18.3 % Occupancy and equipment ​ 915 ​ 858 ​ 57 6.6 % Data processing and office ​ 450 ​ 449 ​ 1 0.2 % Professional fees ​ 701 ​ 755 ​ (54) (7.2) % Marketing expenses ​ 42 ​ 61 ​ (19) (31.1) % FDIC insurance premiums ​ ​ 96 ​ ​ 127 ​ ​ (31) ​ (24.4) % Directors fees ​ ​ 108 ​ ​ 108 ​ ​ — ​ — % Foreclosed assets, net ​ ​ 429 ​ ​ 1,035 ​ ​ (606) ​ 100.0 % Other ​ 487 ​ 527 ​ (40) (7.6) % Total non-interest expenses ​ $ 6,874 ​ $ 7,002 ​ $ (128) (1.8) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-interest expenses were $6.9 million for the year ended June 30, 2025 compared to $7.0 million for the year ended June 30, 2024.
Interest expense increased $1.3 million, or 57.6%, to $3.6 million for the year ended June 30, 2024 from $2.3 million for the year ended June 30, 2023, due to an increase of $766,000 in interest paid on deposits and an increase of $546,000 in interest paid on borrowings.
Interest expense decreased by $83,000, or 2.3%, to $3.5 million for the year ended June 30, 2025 as compared to the year ended June 30, 2024, due to a decrease of $179,000 in interest paid on borrowings offset by an increase of $96,000 in interest paid on deposits.
For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended June 30, ​ ​ 2024 vs. 2023 ​ ​ Increase (Decrease) Due to ​ Total ​ ​ ​ ​ ​ ​ ​ ​ Increase ​ Volume Rate (Decrease) ​ (In thousands) Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans $ (91) $ 546 $ 455 Debt securities ​ (9) ​ 62 ​ 53 Cash and cash equivalents ​ (218) ​ 108 ​ (110) Other ​ 16 ​ 39 ​ 55 Total interest-earning assets ​ (302) ​ 755 ​ 453 Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Demand, NOW and money market deposits ​ (94) ​ 200 ​ 106 Savings deposits ​ (6) ​ 2 ​ (4) Certificates of deposit ​ (53) ​ 717 ​ 664 Total interest-bearing deposits ​ (153) ​ 919 ​ 766 FHLB advances and other borrowings ​ — ​ 546 ​ 546 Total interest-bearing liabilities ​ (153) ​ 1,465 ​ 1,312 Change in net interest income ​ $ (149) ​ $ (710) ​ $ (859) ​ Comparison of Operating Results for the Years Ended June 30, 2024 and 2023 General.
For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended June 30, ​ ​ 2025 vs. 2024 ​ ​ Increase (Decrease) Due to ​ Total ​ ​ ​ ​ ​ ​ ​ ​ Increase ​ Volume Rate (Decrease) ​ (In thousands) Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans $ (467) $ 479 $ 12 ​ Debt securities ​ (48) ​ 3 ​ (45) ​ Cash and cash equivalents ​ 213 ​ (83) ​ 130 ​ Other ​ 17 ​ 6 ​ 23 ​ Total interest-earning assets ​ (285) ​ 405 ​ 120 ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Demand, NOW and money market deposits ​ 56 ​ 64 ​ 120 ​ Savings deposits ​ (3) ​ — ​ (3) ​ Certificates of deposit ​ (222) ​ 201 ​ (21) ​ Total interest-bearing deposits ​ (169) ​ 265 ​ 96 ​ FHLB advances and other borrowings ​ (182) ​ 3 ​ (179) ​ Total interest-bearing liabilities ​ (351) ​ 268 ​ (83) ​ Change in net interest income ​ $ 66 ​ $ 137 ​ $ 203 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comparison of Operating Results for the Years Ended June 30, 2025 and 2024 General .
No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense, as applicable.
Average Balance Sheets The following table sets forth average balances, average yields and costs, and certain other information for the years indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances.
We assess the allowance for credit losses on a quarterly basis and make provisions for (recovery of) credit losses in order to maintain the allowance. 49 Table of Contents Based on our evaluation of the above factors, we recorded a recovery of credit losses of $190,000 for the year ended June 30, 2024 compared to no provision for credit losses for the year ended June 30, 2023.
Based on our evaluation of the above factors, we recorded a recovery of credit losses of approximately $94,000 for the year ended June 30, 2025 compared to a recovery of credit losses of $190,000 for the year ended June 30, 2024. 50 Table of Contents The decrease in the recovery when comparing the two years was primarily related to an increase in the loan portfolio for the year ended June 30, 2025.
Non-interest income information is as follows. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ Change ​ 2024 2023 Amount Percent ​ (Dollars in thousands) ​ Service charges on deposit accounts ​ $ 125 ​ $ 153 ​ $ (28) (18.3) % Mortgage banking ​ 325 ​ 351 ​ (26) (7.4) % Increase in cash surrender value of BOLI ​ 249 ​ 236 ​ 13 5.5 % Gain on proceeds from life insurance death benefit ​ ​ — ​ ​ 261 ​ ​ (261) ​ 100.0 % Gain on acquisition of foreclosed assets ​ — ​ 247 ​ (247) 100.0 % Net gain on securities transactions ​ ​ — ​ ​ 24 ​ ​ (24) ​ (100.0) % Other ​ 27 ​ 30 ​ (3) (10.0) % Total non-interest income ​ $ 726 ​ $ 1,302 ​ $ (576) (44.2) % ​ Non-interest income decreased by $576,000 to $726,000 for the year ended June 30, 2024 from $1.3 million for the year ended June 30, 2023 due primarily to a gain on proceeds from a life insurance death benefit, a gain on the acquisition of foreclosed assets, and net gain on securities transactions of $261,000, 247,000 and $24,000, respectively, being recognized during the year ended June 30, 2023 compared to no such amounts being recognized during the year ended June 30, 2024.
Non-interest income information is as follows. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ Change ​ 2025 2024 Amount Percent ​ (Dollars in thousands) ​ Service charges on deposit accounts ​ $ 114 ​ $ 125 ​ $ (11) (8.8) % Mortgage banking ​ 291 ​ 325 ​ (34) (10.5) % Increase in cash surrender value of BOLI ​ 270 ​ 249 ​ 21 8.4 % Other ​ 74 ​ 27 ​ 47 174.1 % Total non-interest income ​ $ 749 ​ $ 726 ​ $ 23 3.2 % ​ ​ Non-interest income increased by $23,000 to $749,000 for the year ended June 30, 2025 from $726,000 for the year ended June 30, 2024 due primarily to an increase in other income.
The increase was primarily related to an increase in expenses associated with foreclosed assets of $1.0 million, an increase in occupancy and equipment expenses of $127,000 and minor increases in other expense which were offset by a decrease of $214,000 in salaries and employee benefits when comparing the two years.
The decrease was related to a decrease in expenses associated with foreclosed assets, net, offset by 51 Table of Contents an increase in salaries and employee benefits.
As of June 30, 2024 and 2023, the Bank elected to adopt the Community Bank Leverage Ratio Framework. 45 Table of Contents Comparison of Financial Condition at June 30, 2024 and June 30, 2023 Total Assets. Total assets decreased $19.6 million, or 8.2%, to $219.2 million at June 30, 2024 from $238.8 million at June 30, 2023.
Comparison of Financial Condition at June 30, 2025 and June 30, 2024 Total Assets. Total assets increased $19.5 million, or 8.9%, to $238.8 million at June 30, 2025 from $219.3 million at June 30, 2024.
Net interest-earning assets decreased by $4.5 million, or 11.0%, to $36.2 million for the year ended June 30, 2024 from $40.7 million for the year ended June 30, 2023.
The average balance of the loan portfolio decreased by $10.5 million, or 5.4%, to $183.0 million for the year ended June 30, 2025 from $193.5 million for the year ended June 30, 2024.
Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from the sale of loans, and proceeds from maturities of securities.
Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from the sale of loans, and proceeds from maturities of securities. We also have the ability to borrow from the Federal Home Loan Bank of Chicago.
These changes were partially offset by a recovery of loan losses of $190,000 and a decrease in the provision for income taxes of $504,000. Interest Income .
Offsetting these increases in net income was a decrease in the provision for (recovery of) credit losses of $96,000. Interest Income .
The increase in expenses associated with foreclosed assets was primarily related to the recording of a valuation allowance of $937,000 during the year ended June 30, 2024 associated with a new appraisal obtained on the Company’s only foreclosed asset. For further information, please see Comparison of Financial Condition at June 30, 2024 and June 30, 2023- Foreclosed Assets above.
The decrease in expenses associated with foreclosed assets, net was primarily related to the recording of a valuation allowance of $378,000 for the year ended June 30, 2025 compared to $937,100 during the year ended June 30, 2024 resulting from the Bank’s agreement to sell the property for $1.1 million .
The decrease was primarily due to a decrease of $1.3 million, or 11.1%, in cash and cash equivalents, a decrease in net loans of $14.3 million, or 7.2%, a decrease in interest bearing deposits held in other financial institutions of $3.6 million, or 94.7%, a decrease in debt securities available for sale of $2.3 million, or 25.9% and finally, a decrease in foreclosed assets, net of $914,780, or 39.6%.
The increase was primarily due to an increase in loans, net of $17.3 million, or 9.5%, and an increase in cash and cash equivalents of $3.9 million, or 37.4%. These increases were offset by a decrease in debt securities available for sale of $1.4 million, or 21.3%.
Total deposits decreased $24.3 million, or 12.3%, to $173.0 million at June 30, 2024 from $197.3 million at June 30, 2023. All categories of deposits decreased when comparing June 30, 2024 to June 30, 2023 with certificates of deposit decreasing the most by $16.1 million, or 19.2%.
All categories of deposit average balances decreased (with the exception of demand, NOW and money market deposits) when comparing the year ended June 30, 2025 with the year ended June 30, 2024 with the total average balance of deposits decreasing by $5.0 million, or 2.2%, to $154.0 million for the year ended June 30, 2025.
A summary of income tax expense (benefit) compared to the federal income tax statutory rate is set forth in Note 12 to the Notes to the Audited Consolidated Financial Statements. Liquidity and Capital Resources Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business.
Liquidity and Capital Resources Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures.
The net interest margin decreased 29 basis points to 2.75% for the year ended June 30, 2024 from 3.04% for the year ended June 30, 2023.
Net interest rate spread remained the same at 2.40% for the years ended June 30, 2025 and 2024. The net interest margin increased to 2.84% for the year ended June 30, 2025 compared to 2.75% for the year ended June 30, 2024.
Debt securities interest income increased by $53,000, or 18.2%, to $345,000 for the year ended June 30, 2024 from $292,000 for the year ended June 30, 2023 due to a 58 basis points increase in the average yield on the debt securities portfolio to 3.21% for the year ended June 30, 2024 from 2.63% for the year ended June 30, 2023 offset in part by a $351,000 decrease in the average balance of debt securities to $10.8 million for the year ended June 30, 2024 due to 48 Table of Contents securities paydowns.
Interest income increased by $120,000, or 1.3%, to $9.6 million for the year ended June 30, 2025 as compared to $9.4 million for the year ended June 30, 2024 primarily due to an increase in other interest income of $154,000 which was offset by a decrease in debt securities income of $45,000.
Net interest rate spread decreased by 41 basis points to 2.40% for the year ended June 30, 2024 from 2.81% for the year ended June 30, 2023, reflecting a 77 basis points increase in the average rate paid on interest-bearing liabilities offset by a 36 basis points increase in the average yield on interest-earning assets.
The average rate paid on deposits increased by 12 basis points to 1.97% for the year ended June 30, 2025 from 1.85% for the year ended June 30, 2024. The increase in the average rate paid on deposits was due to higher interest rates and increased competition for deposits.
The Bank also purchased a building for $1.6 million for a new branch location. Debt Securities Available for Sale. Total debt securities available for sale decreased $2.3 million, or 25.9%, to $6.6 million at June 30, 2024 from $8.9 million at June 30, 2023. The decrease was primarily due to the call of $1.7 million in corporate bonds.
These increases in cash and cash equivalents were offset by an increase in loans of $17.3 million, or 9.5%. Debt Securities Available for Sale. Total debt securities available for sale decreased by $1.4 million, or 21.3%, from $6.6 million at June 30, 2024 to $5.2 million at June 30, 2025.
The decrease in salaries and employee benefits was primarily related to the prior year including a bonus accrual compared to no bonus accrual for the current year. Provision for (Recovery from) Income Taxes.
The increase in salaries and employee benefits and occupancy and equipment expenses was related to a new branch which opened in Brookfield, Wisconsin during January 2024. ​ Provision for (Recovery of) Income Taxes.
The decrease in the average balance of certificates of deposit accounts was due to the maturity of two brokered certificates of deposit totaling $8.7 million during the year ended June 30, 2024 offset by the offering of higher rate certificate of deposit balances due to higher market interest rates.
The decrease in interest paid on borrowings was due to the average balance of FHLB advances decreasing by $4.7 million to $12.1 million for the year ended June 30, 2025 from $16.8 million for the year ended June 30, 2024 as a result of repayments of borrowings.
The recovery was related to an improvement in the current and projected future economic conditions in our market area and the decline in the overall loan portfolio. We anticipate low unemployment and that the housing price index (HPI) will improve over the next two years due to continued high demand and the low inventory of residential real estate.
The recovery was related to the projected future economic conditions in our market area stabilizing over the next two years, an increase in prepayments in both consumer and commercial loans, which was impactful to the weighted average life of the loan portfolio and the continuous recoveries of two legacy charge-offs.
Removed
Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for credit losses calculation for our loan portfolio.
Added
The allowance for credit losses on loans is established through charges to earnings in the form of a provision for credit losses.
Removed
Accrued interest receivable on AFS securities is excluded from the estimate of credit losses. The Company did not record a cumulative-effect adjustment related to its AFS securities upon adoption of CECL on July 1, 2023.
Added
Because Marathon Bancorp’s methodology for maintaining its allowance for credit losses is based on historical experience and trends, current economic information, forecasted data, and management's judgement, a range of estimates for the estimate of the allowance for credit losses may be supportable.
Removed
See Note 3, Debt Securities, to the audited consolidated financial statements under Part II, Item 8, "Financial Statements and Supplementary Data," for a description of the Company’s investment securities and impairment evaluation. Allowance for Credit Losses on Held to Maturity (“HTM”) Securities .
Added
Deteriorating economic conditions may lead to further required increases to the allowance; conversely, improvements to economic conditions may warrant further reductions to the allowance.
Removed
The Standard also establishes a fair value hierarchy, which prioritizes the valuation inputs into three broad levels: ● Level 1 inputs consist of quoted prices in active markets for identical assets that the reporting entity has the ability to access at the measurement date. ● Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the related asset. ● Level 3 inputs are unobservable inputs related to the asset.
Added
In estimating the allowance for credit losses, management considers the sensitivity of the model and significant judgments and assumptions that could result in an amount that is materially different from management’s estimate, including as it relates to qualitative considerations. ​ As of June 30, 2025 and June 30, 2024, the allowance for credit losses totaled $1.7 million and $1.8 million, respectively.
Removed
These decreases were partially offset by an increase in premises and equipment of $2.0 million. The increase in premises and equipment was associated with the Bank’s new branch in Brookfield, Wisconsin which opened on January 22, 2024. Cash and Cash Equivalents.
Added
Due to the nature and composition of Marathon Bank's lending activities, a significant portion of the allowance for credit losses is allocated to the one- to four-family residential loan portfolio and the commercial real estate and multifamily real estate loan portfolios.
Removed
Debt securities available for sale are carried at fair value with the unrealized gain or loss reflected in accumulated other comprehensive income (loss). Loans. Gross loans decreased $14.6 million, or 7.3%, to $185.3 million at June 30, 2024 from $199.9 million at June 30, 2023.
Added
As of June 30, 2025 and June 30, 2024, the allowance for credit losses 42 Table of Contents allocated to the one- to four-family residential loan portfolio and the commercial real estate and multifamily real estate loan portfolios was $1.1 million and $461,000, respectively, or 65.7% and 32.8%, respectively. ​ Changes in the Wisconsin unemployment rate, the Wisconsin annual housing price index and the Wisconsin annual gross domestic product could have a material impact on the model’s estimation of the allowance for credit losses.
Removed
The decrease was primarily due to a decrease in all categories of loans with the exception of multi-family real estate loans which increased by $0.9 million, or 2.1%, to $45.1 million at June 30, 2024 from $44.2 million at June 30, 2023.
Added
Marathon Bank’s methodology for maintaining its allowance for credit losses includes various levels within each of the aforementioned criteria. Set forth below is a hypothetical change to the next level within Marathon Bank’s allowance calculation.
Removed
Consumer loans decreased by $1.2 million, or 43.0%, primarily due to the payoff of a consumer loan which was secured by a $650,000 certificate of deposit account. The decrease in construction loans was primarily due to two construction loans totaling $613,000 which were converted to permanent financings.
Added
Changing these levels as of June 30, 2025, from those actually used on June 30, 2025 to the next highest or lowest level resulted in an increase in Marathon Bank’s allowance for credit losses of $139,000, or 8.1%. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Historical Actual ​ ​ Hypothetical Change ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Wisconsin Unemployment (2.4%-3.0%) ​ ​ ​ ​ ​ ​ ​ 3.0%-4.0% ​ Wisconsin Annual Housing Price Index (4.4%-6.5%) ​ ​ ​ ​ ​ ​ ​ 0.4%-4.4% ​ Wisconsin Annual Gross Domestic Product (-6.6%-2.4%) ​ ​ ​ ​ ​ ​ ​ -6.6%-2.4% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ While management has concluded that its current evaluation is reasonable under the circumstances, and that sensitivity analysis is based on a series of hypothetical scenarios not intended to represent management’s assumptions or judgement of factors as of June 30, 2025, it has also concluded that differing assumptions could materially impact allowance calculations, either positively or adversely. ​ Income Taxes .
Removed
The remaining categories of loan decreases (commercial real estate, commercial and industrial and one-to-four-family residential) were primarily due to repayments exceeding new loan growth. Foreclosed Assets (OREO), net. Foreclosed assets decreased by $937,100, or 40.1%.
Added
Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated cost to sell at the date of foreclosure, establishing a new cost basis.

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