10-Q: Marathon Bancorp Reports Q3 2025 Results, Cites Conversion and Loan Growth

Marathon Bancorp reports increased net income for Q3 2025, driven by decreased non-interest expenses and the completion of its conversion to a stock holding company.

Summary

• Marathon Bancorp, Inc. reported a net income of $148,000 for the three months ended March 31, 2025, compared to a net loss of $631,000 for the same period in 2024.
• For the nine months ended March 31, 2025, net income was $374,437, compared to a net loss of $272,830 for the same period in 2024.
• Total assets increased to $236.8 million at March 31, 2025, from $219.2 million at June 30, 2024.
• Gross loans increased to $190.4 million at March 31, 2025, from $185.2 million at June 30, 2024.
• Total deposits increased to $186.0 million at March 31, 2025, from $173.0 million at June 30, 2024.
• The company completed its conversion from a mutual holding company to a stock holding company on April 21, 2025, generating gross proceeds of $16.9 million.
• Offering expenses in connection with the Conversion are expected to be approximately $1.7 million which will be netted against the gross proceeds.

Sentiment

Score: 7

Explanation: The report shows improved financial performance and a successful conversion, indicating a positive outlook, but also acknowledges risks and uncertainties.

Positives

• Net income improved significantly for both the quarter and the nine-month period.
• Total assets, gross loans, and total deposits all showed positive growth.
• The successful conversion to a stock holding company provides additional capital.
• A decrease in non-interest expenses contributed to improved profitability.
• Net interest margin increased to 2.97% for the three months ended March 31, 2025 from 2.73% for the three months ended March 31, 2024.

Negatives

• Interest income decreased by 3.0% for the nine months ended March 31, 2025 as compared to $7.1 million for the nine months ended March 31, 2024.
• Net interest income decreased by $165,000, or 3.7%, to $4.3 million for the nine months ended March 31, 2025 from $4.5 million for the nine months ended March 31, 2024.

Risks

• The allowance for credit losses is based on estimates and is susceptible to significant revision as more information becomes available.
• Changes in economic conditions, particularly in Wisconsin, could materially impact the allowance for credit losses.
• Regulatory reviews of the allowance for credit losses could lead to adjustments.
• Increased competition for deposits could impact interest expense.
• Fluctuations in interest rates could impact margins and yields.

Future Outlook

The report contains forward-looking statements subject to risks and uncertainties, and actual results could differ materially.

Industry Context

The report reflects the performance of a community bank in the context of changing interest rates, economic conditions, and regulatory requirements.

Legal Proceedings

• As of March 31, 2025, the Company is not currently a named party in a legal proceeding, the outcome of which would have a material effect on the financial condition or results of operations of the Company.

Stakeholder Impact

• Shareholders benefit from improved profitability and the successful conversion.
• Customers may see changes in deposit rates and loan offerings.
• Employees are affected by changes in compensation and benefits.

Key Dates

Keywords

Marathon Bancorp, financial results, Q3 2025, conversion, loan growth, deposits, net income, assets, FHLB, credit losses