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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission File Number: 001-42608

MARATHON BANCORP, INC.

(Exact name of registrant as specified in its charter)


Maryland		86-2191258
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)



500 Scott Street, Wausau, Wisconsin		54403
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (715) 845-7331

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, $.01 par value

MBBC

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ⌧ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ⌧ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “small reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	⌧	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ⌧

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date:

As of February 10, 2026, there were 2,938,620 shares of the registrant’s common stock issued and outstanding.

Table of Contents

MARATHON BANCORP, INC.

INDEX


		PAGE NO.
PART I - FINANCIAL INFORMATION		2

Item 1.	Consolidated Balance Sheets as of December 31, 2025 (Unaudited) and June 30, 2025	2
	Consolidated Statements of Income for the Three and Six Months Ended December 31, 2025 and 2024 (Unaudited)	3
	Consolidated Statements of Comprehensive Income for the Three and Six Months Ended December 31, 2025 and 2024 (Unaudited)	4-5
	Consolidated Statements of Changes in Stockholders’ Equity for the Three and Six Months Ended December 31, 2025 and 2024 (Unaudited)	6
	Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2025 and 2024 (Unaudited)	7
	Notes to Consolidated Financial Statements (Unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	58

Item 4.	Controls and Procedures	58

PART II - OTHER INFORMATION		59

Item 1.	Legal Proceedings	59
Item 1A.	Risk Factors	59
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59
Item 3.	Defaults upon Senior Securities	59
Item 4.	Mine Safety Disclosures	59
Item 5.	Other information	59
Item 6.	Exhibits	60

SIGNATURES		61

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

MARATHON BANCORP, INC.

CONSOLIDATED BALANCE SHEETS


		Unaudited			June 30,
		December 31, 2025			2025
Assets
Cash and due from banks		$	2,166,492		$	2,242,736
Federal funds sold			11,491,000			12,143,000
Cash and cash equivalents			13,657,492			14,385,736
Interest earning deposits held in other financial institutions			176,326			237,247
Debt securities available for sale, at fair value			4,060,914			5,201,279
Debt securities held to maturity, at amortized cost (fair value $372,596 and $373,568)			465,336			483,787
Loans, net of allowance of $1,702,526 and $1,708,269, respectively			211,912,653			200,795,706
Accrued interest receivable			706,026			667,686
Foreclosed assets, net			996,373			996,373
Investment in restricted stock, at cost			1,329,413			1,329,413
Cash surrender value life insurance			9,384,116			9,242,673
Premises and equipment, net			3,707,059			3,883,537
Other assets			1,620,318			1,611,363
Total assets		$	248,016,026		$	238,834,800
Liabilities and Stockholders' Equity
Liabilities
Deposits
Non-interest bearing		$	21,415,679		$	22,466,092
Interest bearing			156,971,774			152,774,734
Total deposits			178,387,453			175,240,826
Federal Home Loan Bank (FHLB) advances			19,000,000			15,000,000
Other liabilities			3,743,138			2,884,753
Total liabilities			201,130,591			193,125,579
Commitments and Contingent Liabilities (see note 13)			—			—
Stockholders' Equity
Preferred stock, $.01 par value, 5,000,000 shares authorized, none issued			—			—
Common stock, $.01 par value, 20,000,000 shares authorized, 2,938,620 and 2,938,698 shares issued and outstanding at December 31, 2025 and June 30, 2025, respectively			28,962			28,962
Additional paid-in capital			22,753,704			22,647,140
Retained earnings			26,511,815			25,566,126
Unearned ESOP shares, at cost			(2,005,296)			(2,047,077)
Accumulated other comprehensive loss			(403,750)			(485,930)
Total stockholders' equity			46,885,435			45,709,221
Total liabilities and stockholders' equity		$	248,016,026		$	238,834,800

See accompanying notes to the consolidated financial statements.

Table of Contents

MARATHON BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

Unaudited



		Three Months			Three Months (1)			Six Months			Six Months (1)
		Ended December 31,			Ended December 31,			Ended December 31,			Ended December 31,
		2025			2024			2025			2024
Interest Income
Loans, including fees		$	2,756,794		$	2,037,941		$	5,377,900		$	4,113,820
Debt securities			31,321			44,868			88,135			91,331
Other			162,578			184,416			360,073			374,271
Total interest income			2,950,693			2,267,225			5,826,108			4,579,422
Interest Expense
Deposits			751,897			763,506			1,534,116			1,534,861
Borrowings and other			140,990			97,622			281,162			218,370
Total interest expense			892,887			861,128			1,815,278			1,753,231
Net Interest Income			2,057,806			1,406,097			4,010,830			2,826,191
Provision for (Recovery of) Credit Losses			33,000			8,000			(7,000)			(147,000)
Net Interest Income After Provision for (Recovery of) Credit Losses			2,024,806			1,398,097			4,017,830			2,973,191
Non-Interest Income
Service charges on deposit accounts			34,171			28,920			67,279			60,559
Mortgage banking income			66,120			76,755			147,382			164,668
Increase in cash value of life insurance			71,550			67,193			141,443			134,189
Other income			18,106			7,433			23,521			14,119
Total non-interest income			189,947			180,301			379,625			373,535
Non-Interest Expenses
Salaries and employee benefits			903,919			834,453			1,801,791			1,669,641
Occupancy and equipment expenses			210,042			210,273			426,021			450,730
Data processing and office			26,843			99,660			126,186			214,394
Professional fees			257,236			185,010			449,757			341,629
Marketing expenses			21,816			13,933			43,266			28,645
Foreclosed assets, net			13,495			5,228			29,730			22,800
Other expenses			192,799			177,195			384,782			350,735
Total non-interest expenses			1,626,150			1,525,752			3,261,533			3,078,574
Income Before Provision for Income Taxes			588,603			52,646			1,135,922			268,152
Provision for Income Taxes			87,207			1,519			190,233			42,118
Net Income		$	501,396		$	51,127		$	945,689		$	226,034

Net income per common share-basic			$0.19			$0.02			$0.35			$0.08
Net income per common share-diluted			$0.19			$0.02			$0.35			$0.08
Weighted average number of common shares outstanding-basic			2,686,037			2,792,641			2,684,856			2,793,235
Weighted average number of common shares outstanding-diluted			2,698,863			2,793,938			2,694,021			2,793,235

(1)	Share amounts related to periods prior to the April 21, 2025 closing of the conversion offering have been restated to give retroactive recognition to the 1.3728 exchange ratio applied in the conversion offering (See Note 1).

See accompanying notes to the consolidated financial statements.

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MARATHON BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Unaudited


		Three Months Ended
		December 31,
		2025		2024
Net Income		$	501,396	$	51,127
Other comprehensive income
Unrealized gains on available for sale debt securities
Unrealized holding gains arising during the period			37,942		9,808
Tax effect			(7,968)		(2,060)
Net amount			29,974		7,748
Reclassification adjustment for amortization of stranded tax effect from change in tax legislation (b)			(2,019)		(2,767)
Amortization of unrealized losses on debt securities transferred from available for sale to held to maturity (a)			1,263		1,346
Other comprehensive income			29,218		6,327
Comprehensive Income		$	530,614	$	57,454

(a)	The reclassification adjustment is reflected in the Consolidated Statements of Income as Interest Income-Debt Securities.

(b)	The reclassification is included in the Consolidated Statements of Income as Other Expenses.

See accompanying notes to the consolidated financial statements.

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MARATHON BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Unaudited


		Six Months Ended
		December 31,
		2025		2024
Net Income		$	945,689	$	226,034
Other comprehensive income
Unrealized gains on available for sale debt securities
Unrealized holding gains arising during the period			106,124		153,636
Tax effect			(22,285)		(32,264)
Net amount			83,839		121,372

Reclassification adjustment for amortization of stranded tax effect from change in tax legislation (b)			(4,321)		(5,855)
Amortization of unrealized losses on debt securities transferred from available for sale to held to maturity (a)			2,662		2,603
Other comprehensive income			82,180		118,120
Comprehensive Income		$	1,027,869	$	344,154

(a) The reclassification adjustment is reflected in the Consolidated Statements of Income as Interest Income-Debt Securities.

(b) The reclassification is included in the Consolidated Statements of Income as Other Expenses.

See accompanying notes to the consolidated financial statements.

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MARATHON BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Unaudited


																	Accumulated
		Common						Additional						Unearned			Other
		Stock			Common			Paid-in			Retained			ESOP			Comprehensive
		Shares			Stock			Capital			Earnings			Shares			Loss			Total
Balance, July 1, 2025			2,938,698		$	28,962		$	22,647,140		$	25,566,126		$	(2,047,077)		$	(485,930)		$	45,709,221
Net income			—			—			—			444,293			—			—			444,293
Other comprehensive income			—			—			—			—			—			52,962			52,962
ESOP shares committed to be released (2,363 shares)			—			—			14,555			—			20,883			—			35,438
Stock based compensation			402			—			38,868			—			—			—			38,868
Balance, September 30, 2025			2,939,100			28,962			22,700,563			26,010,419			(2,026,194)			(432,968)			46,280,782
Net income			—			—			—			501,396			—			—			501,396
Other comprehensive income			—			—			—			—			—			29,218			29,218
ESOP shares committed to be released (2,363 shares)			—			—			14,541			—			20,898			—			35,439
Stock based compensation			(480)			—			38,600			—			—			—			38,600
Balance, December 31, 2025			2,938,620		$	28,962		$	22,753,704		$	26,511,815		$	(2,005,296)		$	(403,750)		$	46,885,435

																		Accumulated
		Common							Additional						Unearned			Other
			Stock			Common			Paid-in			Retained			ESOP			Comprehensive
			Shares (1)			Stock			Capital			Earnings			Shares			Loss			Total
Balance, July 1, 2024			2,938,362		$	20,970		$	7,254,534		$	25,523,681		$	(751,613)		$	(752,788)		$	31,294,784
Net income			—			—			—			174,907			—			—			174,907
Other comprehensive income			—			—			—			—			—			111,793			111,793
ESOP shares committed to be released (874 shares)			—			—			1,747			—			8,740			—			10,487
Stock based compensation			—			—			39,776			—			—			—			39,776
Purchase and retirement of common stock shares			(6,864)			(50)			(44,450)			—			—			—			(44,500)
Balance, September 30, 2024			2,931,498			20,920			7,251,607			25,698,588			(742,873)			(640,995)			31,587,247
Net income			—			—			—			51,127			—			—			51,127
Other comprehensive income			—			—			—			—			—			6,327			6,327
ESOP shares committed to be released (874 shares)			—			—			(7,691)			—			8,739			—			1,048
Stock based compensation			—			—			39,170			—			—			—			39,170
Balance, December 31, 2024			2,931,498		$	20,920		$	7,283,086		$	25,749,715		$	(734,134)		$	(634,668)		$	31,684,919

(1)	Share amounts related to periods prior to the April 21, 2025 closing of the conversion offering have been restated to give retroactive recognition to the 1.3728 exchange ratio applied in the conversion offering (see Note 1).

See accompanying notes to the consolidated financial statements.

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MARATHON BANCORP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited


		Six Months Ended
		December 31,
		2025			2024
Operating Activities
Net income		$	945,689		$	226,034
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			140,970			141,121
Recovery of credit losses			(7,000)			(147,000)
Stock based compensation expense			77,468			78,946
ESOP expense			70,877			11,535
Net amortization of discounts and premiums on debt securities			2,044			28,279
Amortization of deferred loan fees, net			(52,626)			(23,479)
Net gain on sale of loans			(70,144)			(88,082)
Deferred tax expense (benefit)			(33,869)			20,901
Earnings on cash value of life insurance			(141,443)			(134,189)
(Increase) decrease in interest receivable			(38,340)			7,319
Originations of loans held for sale			(2,150,024)			(4,135,841)
Proceeds from loans held for sale			2,220,168			4,223,923
Net change in operating leases			115			692
Net change in other assets			(1,692)			(51,805)
Net change in other liabilities			915,124			900,506
Net Cash Provided by Operating Activities			1,877,317			1,058,860
Investing Activities
Net change in interest-bearing deposits in other financial institutions			60,921			87,930
Proceeds from maturities, calls and repayments of debt securities available for sale			1,243,938			489,296
Proceeds from maturities and calls of debt securities held to maturity			21,620			13,479
Net (increase) decrease in loans			(11,057,321)			6,690,621
Purchases of property and equipment			(21,346)			(32,307)
Net Cash (Used in) Provided by Investing Activities			(9,752,188)			7,249,019
Financing Activities
Net change in deposits			3,146,627			436,498
Proceeds from FHLB advances, net			4,000,000			—
Repayments of FHLB advances			—			(3,000,000)
Purchase and retirement of common stock			—			(44,500)
Net Cash Provided by (Used in) Financing Activities			7,146,627			(2,608,002)
Net Change in Cash and Cash Equivalents			(728,244)			5,699,877
Cash and Cash Equivalents, Beginning of Period			14,385,736			10,472,438
Cash and Cash Equivalents, End of Period		$	13,657,492		$	16,172,315
Supplemental Disclosure of Cash Flow Information
Cash payments for
Interest		$	1,864,051		$	1,274,504
Taxes			140,000			—

See accompanying notes to the consolidated financial statements.

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MARATHON BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 1- Basis of Presentation

Marathon Bancorp, Inc. (the “Company” or “Marathon Bancorp”), a Maryland corporation, was formed in December 2020 to serve as the mid-tier holding company for Marathon Bank (the “Bank”) upon the completion of the Bank’s mutual holding company reorganization and offering.

On April 14, 2021, the Bank completed its reorganization into the mutual holding company structure and the related stock offering of the Company, the Bank’s new 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.

On April 21, 2025, the Company completed its conversion from the mutual holding company form of organization to the stock holding company form of organization (the "Conversion"). In connection with the Conversion, the Mutual Holding Company ceased to exist. Also, as part of the Conversion, the Company sold 1,693,411 shares of its common stock, which included 135,472 shares issued to the Employee Stock Ownership Plan (“ESOP”) at a price of $10.00 per share to the public. Each outstanding share of Company common stock owned by the public stockholders of the Company (stockholders other than the Mutual Holding Company) were converted into new shares of Company common stock based on an exchange ratio of 1.3728-to-1. Following the completion of the Conversion, the Company’s shares of common stock began trading on the Nasdaq Capital Market under the trading symbol “MBBC.”

The Company generated gross proceeds of $16.9 million from the Conversion. Offering expenses in connection with the Conversion were $1.7 million which were netted against the gross proceeds.

In connection with the Conversion, the Company provided a term loan to the ESOP to finance the ESOP’s purchase of the 135,472 shares noted above. The Company combined its existing outstanding ESOP loan in the amount of $777,212 with this new loan resulting in a new term loan to the ESOP of $2.1 million which will be repaid in annual installments over 25 years.

Finally, as a result of the Conversion, all existing stock options and restricted stock awards outstanding on April 21, 2025 were adjusted based on the exchange ratio of 1.3728-to-1. All historical share and per share information prior to the completion of the Conversion also has been restated to reflect the 1.3728-to-1 exchange ratio.

The Bank is a Wisconsin stock savings bank, which conducts its business through five facilities. The Bank operates as a full-service financial institution with a primary market area including, but not limited to, Marathon County, Ozaukee County and Waukesha County, Wisconsin. Its primary deposit products are demand deposits, savings, and certificates of deposits; and its primary lending products are commercial real estate, commercial and industrial, construction, one-to-four-family residential, multi-family real estate and consumer loans. In addition, the Bank has two nonbank subsidiaries for the purpose of temporarily holding a foreclosed property pending the liquidation of this property and to hold the real estate of its recently opened branch in Brookfield, Wisconsin.

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates, and such differences could be material to the financial statements. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses, valuation of foreclosed assets, valuation of deferred tax assets, and fair value of financial assets and liabilities.

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In the opinion of management, all adjustments considered necessary for fair presentation have been included. Operating results for the three and six month periods ended December 31, 2025 are not necessarily indicative of the results for the fiscal year ending June 30, 2026 or any other period. For further information, refer to the audited consolidated financial statements and notes thereto for the fiscal years ended June 30, 2025 and 2024 contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on September 26, 2025.

Recent Accounting Pronouncements

This section provides a summary description of recent Accounting Standards Updates (ASU) issued by the Financial Accounting Standards Board (FASB) to the Accounting Standards Codification (ASC) that had or that management expects may have an impact on the consolidated financial statements issued upon adoption. The Company is classified as an emerging growth company and has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Effective dates reflect this election.

Recently Issued, But Not Yet Effective Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (FASB) issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires public companies to disclose, in the notes to the financial statements, specific information about certain costs and expenses at each interim and annual reporting period. This includes disclosing amounts related to employee compensation, depreciation, and intangible asset amortization. In addition, public companies will need to provide qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. In January 2025, the FASB issued ASU No. 2025-01 clarifying the effective date for public business entities for fiscal years beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating ASU 2024-03 and its impact on its disclosures.

In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The amendments in this ASU require an entity to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold, which is greater than five percent of the amount computed by multiplying pretax income by the entity’s applicable statutory rate, on an annual basis. Additionally, the amendments in this ASU require an entity to disclose the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions that are equal to or greater than five percent of total income taxes paid (net of refunds received). Lastly, the amendments in this ASU require an entity to disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. This ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied on a prospective basis; however, retrospective application is permitted. The Company does not expect the adoption of ASU 2023-09 to have a material impact on its consolidated financial statements.

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Note 2- Earnings Per Share

Basic net income per common share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Unallocated common shares held by the ESOP are not included in the weighted-average number of common shares outstanding for purposes of calculating earnings per common share until they are committed to be released. Diluted earnings per share is adjusted for the dilutive effects of stock based compensation and is calculated using the treasury stock method. Set forth below is the calculation of earnings per share.


	Unaudited					Unaudited
	For the Three Months					For the Six Months
	Ended December 31,					Ended December 31,
	2025			2024 (1)		2025		2024


Net income applicable to common stock	$	501,396		$	51,127	$	945,689	$	226,034

Average number of shares outstanding		2,914,021			2,894,022		2,914,021		2,895,216
Less: Average unallocated ESOP shares		227,984			101,381		229,165		101,981

Average number of common shares outstanding used to calculate basic earnings per share		2,686,037			2,792,641		2,684,856		2,793,235
Effect of dilutive restricted stock awards and stock options		12,826			1,297		9,165		—
Average number of common shares outstanding used to calculate diluted earnings per share		2,698,863			2,793,938		2,694,021		2,793,235

Earnings per common share:
Basic	$	0.19		$	0.02	$	0.35	$	0.08
Diluted		0.19			0.02		0.35		0.08

(1)	Share amounts related to periods prior to the April 21, 2025 closing of the conversion offering have been restated to give retroactive recognition to the 1.3728 exchange ratio applied in the conversion offering (see Note 1).

Note 3- Debt Securities

The amortized cost and fair value of debt securities, with gross unrealized gains and losses, are as follows as of December 31, 2025 and June 30, 2025:


					Gross			Gross
		Amortized			Unrealized			Unrealized
		Cost			Gains			Losses			Fair Value
December 31, 2025
Available for sale debt securities
States and municipalities		$	379,864		$	234		$	(432)		$	379,666
Mortgage-backed			699,215			22,933			(27,326)			694,822
Corporate bonds			3,500,000			—			(513,574)			2,986,426
		$	4,579,079		$	23,167		$	(541,332)		$	4,060,914
Held to maturity debt securities
Mortgage-backed		$	465,336		$	—		$	(92,740)		$	372,596

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					Gross			Gross
		Amortized			Unrealized			Unrealized
		Cost			Gains			Losses			Fair Value
June 30, 2025
Available for sale debt securities
States and municipalities		$	449,792		$	296		$	(772)		$	449,316
Mortgage-backed			875,776			22,607			(39,621)			858,762
Corporate bonds			4,500,000			5,900			(612,699)			3,893,201
		$	5,825,568		$	28,803		$	(653,092)		$	5,201,279
Held to maturity debt securities
Mortgage-backed		$	483,787		$	—		$	(110,219)		$	373,568

There is no allowance for credit losses on available for sale and held to maturity debt securities at December 31, 2025 and June 30, 2025. Securities with a carrying value of approximately $33,000 and $79,000 as of December 31, 2025 and June 30, 2025, respectively, were pledged to secure public deposits and debt. Accrued interest receivable totaled $35,584 and $64,377 as of December 31, 2025 and June 30, 2025, respectively and is excluded from the measurement of credit losses.

The amortized cost and fair value of debt securities by contractual maturity at December 31, 2025, are as follows:


	Available for Sale Debt Securities				Held to Maturity Debt Securities
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
December 31, 2025
Due in one year or less	$	299,864	$	299,625	$	—	$	—
Due from more than one to five years		3,580,000		3,066,467		—		—
Due from more than five to ten years		—		—		—		—
		3,879,864		3,366,092		—		—
Mortgage-backed securities (with no specific maturity)		699,215		694,822		465,336		372,596
	$	4,579,079	$	4,060,914	$	465,336	$	372,596

There were no sales of available for sale debt securities during the three and six month periods ended December 31, 2025 and 2024. There were also no transfers of debt securities between categories during the three and six month periods ended December 31, 2025 and 2024. The following table shows the gross unrealized losses and fair value of the Company’s securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2025 and June 30, 2025:


	Less than 12 Months				12 Months or More				Total
	Gross				Gross				Gross
	Unrealized				Unrealized				Unrealized
	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
December 31, 2025
Available for sale debt securities
States and municipalities	$	—	$	—	$	(432)	$	114,568	$	(432)	$	114,568
Mortgage-backed		—		—		(27,326)		511,016		(27,326)		511,016
Corporate bonds		—		—		(513,574)		2,986,426		(513,574)		2,986,426
	$	—	$	—	$	(541,332)	$	3,612,010	$	(541,332)	$	3,612,010

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	Less than 12 Months				12 Months or More				Total
	Gross				Gross				Gross
	Unrealized				Unrealized				Unrealized
	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
June 30, 2025
Available for sale debt securities
States and municipalities	$	—	$	—	$	(772)	$	114,228	$	(772)	$	114,228
Mortgage-backed		(97)		30,835		(39,524)		691,927		(39,621)		722,762
Corporate bonds		—		—		(612,699)		2,887,301		(612,699)		2,887,301
	$	(97)	$	30,835	$	(652,995)	$	3,693,456	$	(653,092)	$	3,724,291

There were no securities in an unrealized loss position in the less than 12 months category and 35 securities in the 12 months or more category at December 31, 2025. There were four securities in an unrealized loss position in the less than 12 months category and 40 securities in the 12 months or more category at June 30, 2025. Unrealized losses have not been recognized into income because the decline in fair value is largely due to changes in interest rates and other market conditions and does not indicate a permanent impairment of fair value. The contractual terms of the securities do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investment. The Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be maturity. Mortgage-backed securities held to maturity are backed by pools of mortgages that are insured or guaranteed by the Federal Home Mortgage Corporation. It is expected that the securities will not be settled at prices less than the amortized cost bases of the securities. Accordingly, no allowance for credit losses has been recorded.

Note 4- Loans

The Company’s loans are stated at their face amount, net of deferred fees and costs and discounts, and consist of the classes of loans included in the table below. The Company has elected to exclude accrued interest receivable, totaling $670,442 at December 31, 2025 and $603,309 as of June 30, 2025, from the amortized cost basis of loans and measurement of credit loss.

A summary of loans by major category follows:


	Unaudited
	December 31, 2025		June 30, 2025

	(Dollars in thousands)
Commercial real estate	$	90,819	$	91,867
Commercial and industrial		3,659		3,876
Construction		800		733
One-to-four-family residential		64,008		56,330
Multi-family real estate		51,679		47,808
Consumer		2,767		1,957
Total loans		213,732		202,571
Deferred loan fees		(116)		(67)
Allowance for credit losses		(1,703)		(1,708)
Loans, net	$	211,913	$	200,796

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The following tables summarize the activity in the allowance for credit losses - loans by loan class for the three and six months ended December 31, 2025 and 2024:


		Allowance for Credit Losses-Loans-Three Months Ended December 31, 2025
		(Dollars in thousands)

												Provision for
												(Recovery of)
												Credit
			Beginning									Losses-			Ending
			Balance			Charge-offs			Recoveries			Loans			Balance
			October 1, 2025												December 31, 2025
Commercial real estate		$	418		$	—		$	—		$	(51)		$	367
Commercial and industrial			14			—			—			(4)			10
Construction			5			—			—			(4)			1
One-to-four-family residential			979			—			—			121			1,100
Multi-family real estate			236			—			—			(29)			207
Consumer			17			—			1			—			18
Total loans		$	1,669		$	—		$	1		$	33		$	1,703


		Allowance for Credit Losses-Loans-Three Months Ended December 31, 2024
		(Dollars in thousands)

												Provision for
												(Recovery of)
												Credit
			Beginning									Losses-			Ending
			Balance			Charge-offs			Recoveries			Loans			Balance
			October 1, 2024												December 31, 2024
Commercial real estate		$	244		$	—		$	—		$	18		$	262
Commercial and industrial			15			—			—			(1)			14
Construction			—			—			—			—			—
One-to-four-family residential			1,210			—			—			(1)			1,209
Multi-family real estate			168			—			—			(11)			157
Consumer			5			—			1			3			9
Total loans		$	1,642		$	—		$	1		$	8		$	1,651

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		Allowance for Credit Losses-Loans-Six Months Ended December 31, 2025
		(Dollars in thousands)

												Provision for
												(Recovery of)
												Credit
			Beginning									Losses-			Ending
			Balance			Charge-offs			Recoveries			Loans			Balance
			July 1, 2025												December 31, 2025
Commercial real estate		$	390		$	—		$	—		$	(23)		$	367
Commercial and industrial			11			—			—			(1)			10
Construction			4			—			—			(3)			1
One-to-four-family residential			1,123			—			—			(23)			1,100
Multi-family real estate			171			—			—			36			207
Consumer			9			—			2			7			18
Total loans		$	1,708		$	—		$	2		$	(7)		$	1,703


		Allowance for Credit Losses-Loans-Six Months Ended December 31, 2024
		(Dollars in thousands)

												Provision for
												(Recovery of)
												Credit
			Beginning									Losses-			Ending
			Balance			Charge-offs			Recoveries			Loans			Balance
			July 1, 2024												December 31, 2024
Commercial real estate		$	259		$	—		$	—		$	3		$	262
Commercial and industrial			16			—			—			(2)			14
Construction			28			—			—			(28)			—
One-to-four-family residential			1,314			—			—			(105)			1,209
Multi-family real estate			175			—			—			(18)			157
Consumer			5			—			1			3			9
Total loans		$	1,797		$	—		$	1		$	(147)		$	1,651

The following table presents a breakdown of the provision for (recovery of) credit losses for the periods indicated:


	Three Months				Six Months
	Ended				Ended
	December 31,				December 31,
	2025		2024		2025			2024
Provision for (recovery of) credit losses:
Provision for (recovery of) loans	$	33,000	$	8,000	$	(7,000)	$	(147,000)
Provision for unfunded commitments		—		—		—		—
Total provision for (recovery of) credit losses	$	33,000	$	8,000	$	(7,000)	$	(147,000)

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, collateral adequacy, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non-homogeneous loans such as commercial and industrial, commercial real estate loans and multi-family real estate loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings:

Pass – Loans classified as pass represent loans that are evaluated and are performing under the stated terms. Pass rated assets are analyzed by the paying capacity, the current net worth, and the value of the loan collateral of the obligor.

Table of Contents

Watch - A watch grade is assigned to any credit that is adequately secured and performing but monitored for a number of indicators. These characteristics may include, but are not limited to: any unexpected short-term adverse financial performance from budgeted projections or prior period results (i.e., declining profits, sales, margins, cash flow, or increased reliance on leverage, including adverse balance sheet ratios, trade debt issues, etc.), any managerial or personal problems of company management, a decline in the entire industry or local economic conditions, failure to provide financial information or other documentation as requested, issues regarding delinquency, overdrafts, or renewals, and any other issues that cause concern for the Company.

Special Mention – The characteristics of a special mention asset have potential weaknesses that deserve the Company’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special mention assets are considered criticized assets. Characteristics of special mention loans may include: continued adverse financial trends relating to declining sales, profits, margins, balance sheet ratios, increasing debt to worth, and trade debt issues; cash flows declining in coverage, a repeated lack of compliance with Bank requests for information, correction of a violation of loan covenants, lack of current or adequate financial information or documentation, or more serious managerial or declining industry conditions. Weakness identified in a special mention credit should be short-term in nature.

Substandard – Loans classified as substandard are inadequately protected by the current net worth, paying capacity of the obligor, or by the collateral pledged. Substandard loans must have a well-defined weakness or weaknesses that jeopardize the repayment of the debt as originally contracted. They are characterized by the distinct possibility that the Company will sustain a loss if the deficiencies are not corrected.

Doubtful – Loans classified as doubtful have the weaknesses of those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans in this category are individually evaluated for impairment or charged-off if deemed uncollectible.

Residential and Consumer Grading System-One-to-four-family residential real estate and consumer loans are graded as either non-performing or performing.

Non-performing-Non-performing loans are loans in which the borrower has not made the scheduled payments of principal or interest, and are generally loans over 90 days past due and still accruing interest, and loans on non-accrual status.

Performing-Performing loans are those loans in which the borrower is making timely payments of both principal and interest as upon the agreed loan terms.

Table of Contents

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of watch, special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2025 based on fiscal year of origination:


																							Revolving
																							Loans
																				Revolving			Converted to
		2026			2025			2024			2023			2022			Prior			Loans			Term Loans			Total

		(Dollars in thousands)
Commercial real estate
Pass		$	10,166		$	27,727		$	2,034		$	3,236		$	22,246		$	24,596		$	161		$	—		$	90,166
Watch			—			—			—			653			—			—			—			—			653
Special Mention			—			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—			—
Nonaccrual			—			—			—			—			—			—			—			—			—
Total commercial real estate		$	10,166		$	27,727		$	2,034		$	3,889		$	22,246		$	24,596		$	161		$	—		$	90,819

Commercial and industrial
Pass		$	432		$	380		$	72		$	398		$	902		$	1,466		$	9		$	—		$	3,659
Watch			—			—			—			—			—			—			—			—			—
Special Mention			—			—			—			—			—			—			—			—			—
Substandard			—

Marathon Bancorp, Inc. /MD/ 10-Q