Marathon Bancorp Reports Net Income of $148,403 for Q1 2025, Significant Turnaround from Previous Year

Marathon Bancorp, Inc. reported a net income of $148,403 for the three months ended March 31, 2025, a significant turnaround from a net loss of $631,127 in the same period last year. This improvement is attributed to a decrease in non-interest expenses, which fell by approximately $991,000, alongside a modest increase in net interest income of $58,000. For the nine months ending March 31, 2025, the company recorded a net income of $374,437, compared to a net loss of $272,830 for the same period in 2024. Total interest income for the quarter was $2.3 million, slightly up from $2.32 million a year earlier, while interest expense decreased to $871,260 from $916,370.

The company’s total assets increased by 8.0% to $236.8 million as of March 31, 2025, compared to $219.2 million at the end of the previous fiscal year. This growth was primarily driven by a $13.2 million increase in cash and cash equivalents, which rose to $23.7 million, and a $5.3 million increase in net loans, totaling $188.8 million. The increase in loans was mainly due to a rise in commercial real estate loans, which grew by 11.8%, and a 32.1% increase in consumer loans. However, the company experienced a decrease in debt securities available for sale, which fell by 21.4% to $5.2 million.

In terms of operational developments, Marathon Bancorp completed its conversion from a mutual holding company to a stock holding company in April 2025, resulting in the issuance of 1,693,411 shares of common stock. This conversion is expected to enhance the company's capital structure and facilitate future growth. The company also reported a significant increase in deposits, which rose by 7.5% to $186 million, largely due to demand, NOW, and money market accounts associated with the conversion.

The allowance for credit losses was $1.6 million, representing 0.85% of total loans, a slight decrease from 0.91% a year earlier. The company recorded a recovery of credit losses of $42,000 for the quarter, down from a recovery of $122,000 in the prior year. The management indicated that the allowance reflects their best estimate of expected losses in the loan portfolio, although future adjustments may be necessary based on changing economic conditions.

Looking ahead, Marathon Bancorp anticipates continued growth in its loan portfolio and overall financial performance, supported by a stable economic environment and strategic initiatives following its recent conversion. The company remains focused on maintaining a strong liquidity position and managing its capital effectively to support future growth opportunities.