10-Q · May 13, 2026
Marathon Bancorp exhibited robust financial performance in Q3 2026, highlighted by a dramatic 228.7% increase in net income to $488,000 compared to $148,000 in Q3 2025. Strong revenue streams came from net interest…
Earnings analysis · 10-K
MBBC earnings analysis
Filed September 16, 2026 · Our reading of the company's report
The latest report
Marathon Bancorp delivered a substantial earnings recovery in fiscal 2026, with net income rising to $1.791 million from $42,445 and diluted EPS increasing to $0.66 from $0.02. Growth was driven by an expanding loan…
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Marathon Bancorp delivered a substantial earnings recovery in fiscal 2026, with net income rising to $1.791 million from $42,445 and diluted EPS increasing to $0.66 from $0.02. Growth was driven by an expanding loan portfolio, stronger yields and a 3.59% net interest margin, while deposits and capital remained solid. The outlook is strategically constructive but carries elevated commercial real estate concentration, uninsured-deposit and funding risks, and unresolved foreclosed-asset exposure.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.66
- Segment
- Community banking: one reportable operating segment, with revenue primarily from loan and investment interest income plus banking fees and services.
What stood out
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Sharp earnings and margin inflection
Net income increased to $1.791 million from $42,445, while diluted EPS rose to $0.66 from $0.02. The improvement reflected a 35.8% increase in net interest income to $8.205 million and a 63-basis-point increase in net interest margin to 3.59%.
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Strategic loan growth accelerates
The loan-growth strategy is producing balance-sheet expansion: gross loans increased 8.3% to $219.3 million, led by one- to four-family residential loans up 12.8% to $63.5 million, multifamily loans up 12.8% to $53.9 million, and commercial real estate loans up 4.4% to $95.9 million.
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Higher-yield lending focus
Management is emphasizing commercial real estate and multifamily lending to increase loan yields and manage interest-rate risk. Commercial real estate represented 43.7% of the loan portfolio at June 30, 2026, while multifamily represented 24.6%.
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Balance sheet and capital remain strong
Funding growth supported expansion: deposits increased 8.3% to $189.8 million and total assets increased 9.3% to $261.0 million. Core deposits were $114.9 million, or 60.1% of total deposits, and the Bank remained well capitalized with a 15.34% Tier 1 capital-to-average-assets ratio.
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Operating efficiency opportunity
The company reduced data processing and office expense by $135,000 year over year and expects its new core software contract to save approximately $185,000 annually. Non-interest expense was essentially stable at $6.866 million versus $6.874 million.
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Repurchases prioritized over dividends
Marathon Bancorp initiated a repurchase program authorizing up to 146,931 shares, approximately 5.0% of outstanding shares, and repurchased 4,264 shares under the program during fiscal 2026. It paid no cash dividends in fiscal 2026 or 2025 and currently does not intend to pay them.
What to watch
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Concentrated commercial real estate exposure
The growth strategy increases exposure to commercial real estate and multifamily credit. Commercial real estate totaled $95.9 million, including $85.2 million secured by non-owner-occupied properties; management notes that vacancies, falling rents, weaker property cash flows, and work-from-home trends could deteriorate collateral values and produce substantial losses.
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Uninsured deposits and funding risk
Funding sensitivity increased as the company used borrowings to support loan growth. FHLB advances rose to $20.0 million from $15.0 million, while $77.3 million of deposits were uninsured and $14.0 million were brokered deposits; management warns that deposit runoff could require higher-cost borrowings.
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Unresolved foreclosed asset exposure
The foreclosed property sale remained unresolved: a prior $1.1 million sale contract was terminated, the property was relisted for $1.5 million, and foreclosed assets remained $996,000 at June 30, 2026. The filing states that liquidation can be lengthy and that market conditions may require sale-price concessions.
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Allowance model sensitivity
Credit-loss estimates remain sensitive to economic assumptions. Management states that shocking Wisconsin unemployment, housing-price and GDP inputs to the next distress level would increase the $1.746 million allowance by $292,000, or 17.1%.
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New equity awards create dilution
The 2026 Equity Incentive Plan authorized 169,341 stock options and 67,736 restricted-stock awards; 131,317 options and 53,590 restricted-stock awards were granted in June 2026. This creates potential future dilution, particularly alongside 251,633 outstanding options at June 30, 2026.
Management's outlook
The 10-K does not provide annual numeric revenue or EPS guidance. Management states it anticipates sufficient funds to meet current funding commitments and expects to open a New Holstein, Wisconsin branch in the fourth quarter of 2026.
Earlier filings 4
10-Q · February 11, 2026
Marathon Bancorp reported a materially stronger quarter: net income of $501,396 and diluted EPS of $0.19 for the three months ended December 31, 2025, versus $51,127 and $0.02 in the prior-year quarter. Core net…
10-Q · November 12, 2025
Marathon Bancorp reported a profitable quarter with net income of $444,293 and diluted EPS of $0.17 (three months ended September 30, 2025), up from $174,907 and $0.06 in the prior-year quarter. Core net interest income…
10-K · September 26, 2025
Marathon Bancorp completed its conversion to a stock holding company on April 21, 2025, raising $16.9 million of gross proceeds (offering expenses $1.7 million) and issuing 1,693,411 shares at $10.00 per share. At June…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.