Financial Analysis

Note 18 - Commitments and Contingent Liabilities The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The Companys exposure to credit loss is represented by the contractual amount of these commitments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments. At June 30, 2025 and 2024, the following financial instruments were outstanding where contract amounts represent credit risk: June 30, 2025 June 30, 2024 Commitments to grant loans $ 4,790,000 $ 1,341,500 Unused commitments under lines of credit 6,346,008 3,691,619 MPF credit enhancements 735,448 658,008 Commitments to grant loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on managements credit evaluation of th …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 10 - Borrowings There was $15.0 million in borrowings from the Federal Home Loan Bank of Chicago (FHLB) as of June 30, 2025 and $13.0 million as of June 30, 2024. The borrowings at June 30, 2025 consisted of three - $ 5.0 million 5-year term callable putable advances with maturity dates in September 2028, October 2028 and February 2030 which have call dates beginning in September, 2025, October, 2025 and August 2025, respectively. These putable advances can be called quarterly until maturity at the option of the FHLB. If any advance is terminated requiring repayment prior to stated maturity, the FHLB will offer replacement funding at the then-prevailing rate of interest for an advance product then offered by the FHLB, subject to normal FHLB credit and collateral requirements. The borrowings at June 30, 2024 consisted of a $ 3.0 million 6 month term advance maturing August 21, 2024 and two - $ 5.0 million 5-year term callable putable advances with maturity dates in August 2028 and December 2028 which have call dates beginning in September, 2024 and October, 2024. These putable advances can be called quarterly until maturity at the option of the FHLB. If any advance is terminated requiring repayment prior to stated maturity, the FHLB will offer replacement funding at the then-prevailing rate of interest for an advance product then offered by the FHLB, subject to normal FHLB credit and collateral requirements. The Company maintains a collateral pledge agreement with the FHL …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 15 - Stock-Based Compensation On May 24, 2022, the stockholders of Marathon Bancorp, Inc. approved the Companys 2022 Equity Incentive Plan (the Plan), which provides for the grant of stock-based awards to officers, employees and directors of the Company and Marathon Bank. Under provisions of the Plan, while active, awards may consist of grants of incentive stock options, nonqualified stock options, restricted stock and restricted stock units. Incentive stock options totaling 149,972 and restricted stock awards totaling 59,989 were authorized for award under the Plan. 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 including those described below. The grant date exercise prices for stock options and fair values of restricted stock at grant date were adjusted downward based on the exchange ratio. Stock Options On June 28, 2022, a total of 100,481 stock option awards were granted to the Banks directors, executive officers, senior officers and other officers ( 25,496 and 74,985 options were awarded to directors and employees, respectively). Director awards are considered non-qualified stock options while employee awards are considered incentive stock options. During the year ended June 30, 2023, a director and employee retired resulting in the forfeiture of 10,498 options. An additional 3,996 of options were forfeited by an employee during the year en …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 19 - Fair Value of Assets and Liabilities The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Companys various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. These techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Fair value accounting guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the meas …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 12 - Income Taxes Deferred tax asset and liability consist of the following components as of June 30, 2025 and 2024: 2025 2024 Deferred tax asset Net operating loss $ 545,725 $ 212,557 Allowance for credit losses 382,228 448,749 Available for sale debt securities 131,101 203,576 Lease liability 120,672 144,001 Equity compensation 9,425 6,162 Accrued expenses 55,632 43,792 Impairment of foreclosed assets, net 360,942 257,047 Other 212 21,536 Subtotal 1,605,937 1,337,420 Less valuation allowance (665,008) (321,355) 940,929 1,016,065 Deferred tax liability Property and equipment 73,948 62,866 Mortgage servicing rights 200,385 213,038 Right-of-use-asset 121,545 145,205 Deferred loan costs 24,425 14,616 Subtotal 420,303 435,725 Net deferred tax asset $ 520,626 $ 580,340 The provision for (benefit from) income taxes charged (credited) to income for the years ended June 30, 2025 and 2024, consist of the following: 2025 2024 Current tax expense (benefit) $ (18,794) $ 79,248 Deferred tax expense (benefit) (12,761) (138,356) $ (31,555) $ (59,108) Income tax benefit was $32,000 for the year ended June 30, 2025, an decrease of $27,000, as compared to an income tax benefit of $59,000 for the year ended June 30, 2024. The decrease in income tax benefit was primarily related to an increase in income (loss) before income tax expense (benefit) when comparing the year ended June 30, 2025 and 2024. This increase was offset by a Wisconsin income tax provision of $112,000 related to a change …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 6 - Leases The following tables present information about the Companys leases as of and for the years ended June 30, 2025 and 2024: As of As of June 30, 2025 June 30, 2024 Right-of-use-assets $ 443,111 $ 529,366 Lease liability 439,928 524,973 Weighted average remaining lease term 4.73 years 6.05 years Weighted average discount rate 2.99% 3.38% Year Ended Year Ended June 30, June 30, 2025 2024 Operating lease costs $ 125,295 $ 127,712 Short-term lease costs 39,480 38,280 Total lease costs $ 164,775 $ 165,992 Cash paid for amounts included in measurement of lease liabilities $ 124,056 $ 125,215 As of June 30, 2025 Lease payments due Year ending June 30, 2026 $ 127,980 Year ending June 30, 2027 118,710 Year ending June 30, 2028 48,620 Year ending June 30, 2029 43,200 Year ending June 30, 2030 43,200 Thereafter 100,800 Total 482,510 Discount 42,582 Lease liability $ 439,928 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements This section provides a summary description of recent ASUs issued by the FASB to the 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 StatementReporting Comprehensive IncomeExpense 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 report …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 11 - Related Party Transactions In the ordinary course of business, the Company has granted loans to its principal officers, directors, and their affiliates. There were no such loans as of June 30, 2025 and 2024. Deposits from related parties held by the Bank at June 30, 2025 and 2024, amounted to $600,042 and $824,439, respectively.

RelatedPartyTransactionsDisclosureTextBlock

"Note 1 - Significant Accounting Policies Basis of Presentation and Nature of Operations 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 Banks 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 Banks 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 Companys 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 Mut …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 13- Commitments and Contingencies The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The Companys exposure to credit loss is represented by the contractual amount of these commitments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments. Commitments to grant loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on managements credit evaluation of the customer. Mortgage Partnership Finance (MPF) credit enhancements allow the Company to share the credit risk associated with home mortgage finance with Federal Home Loan Bank (FHLB). MPF provides the Company the ability to originate, sell, and service fixed-rate, residential mortgage loans, and receive a Credit En …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 8- Borrowings There was $19.0 million in borrowings from the Federal Home Loan Bank of Chicago (FHLB) as of December 31, 2025. The borrowings at December 31, 2025 consisted of three separate $5.0 million 5-year term callable putable advances with maturity dates in September 2028, October 2028 and February 2030 which have call dates beginning in March 2026, January 2026 and February 2026, respectively. The Company also has a $4.0 million six-month fixed rate advance maturing June 30, 2026. These putable advances can be called quarterly until maturity at the option of the FHLB. If any advance is terminated requiring repayment prior to stated maturity, the FHLB will offer replacement funding at the then-prevailing rate of interest for an advance product then offered by the FHLB, subject to normal FHLB credit and collateral requirements. There was $15.0 million in borrowings from the Federal Home Loan Bank of Chicago (FHLB) as of June 30, 2025. The borrowings at June 30, 2025 consisted of three separate $5.0 million 5-year term callable putable advances with maturity dates in September 2028, October 2028 and February 2030 which have call dates beginning in September, 2025, October, 2025 and August 2025, respectively. These putable advances can be called quarterly until maturity at the option of the FHLB. If any advance is terminated requiring repayment prior to stated maturity, the FHLB will offer replacement funding at the then-prevailing rate of interest for an advance pro …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 12 - Stock Based Compensation On May 24, 2022, the stockholders of Marathon Bancorp, Inc. approved the Companys 2022 Equity Incentive Plan (the Plan), which provides for the grant of stock-based awards to officers, employees and directors of the Company and Marathon Bank. Under provisions of the Plan, while active, awards may consist of grants of incentive stock options, nonqualified stock options, restricted stock and restricted stock units. Incentive stock options totaling 149,972 and restricted stock awards totaling 59,989 were authorized for award under the Plan. 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 including those described below. The grant date exercise prices for stock options and fair values of restricted stock at grant date were adjusted downward based on the exchange ratio. Stock Options On June 28, 2022, a total of 100,481 stock option awards were granted to the Banks directors, executive officers, senior officers and other officers ( 25,496 and 74,985 options were awarded to directors and employees, respectively). Director awards are considered non-qualified stock options while employee awards are considered incentive stock options. An additional 3,996 of options were forfeited by an employee during the year ended June 30, 2025. The awards vest ratably over five years ( 20% per year for each year of the participants service …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 14- Fair Value of Assets and Liabilities The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Companys various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. These techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Fair value accounting guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measu …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 5 - Leases Lease liabilities represent the Companys obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Companys incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Companys right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable prepaid rent, initial direct costs and any incentives received from the lessor. For all underlying classes of assets, the Company has elected to not recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. The Companys long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. On June 25, 2025, the Company executed a ten-year lease agreement to sublet the top floor of its Brookfield branch which includ …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

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 StatementReporting Comprehensive IncomeExpense 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 busi …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 15- Revenue Recognition In accordance with FASB Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (Topic 606) and all subsequent amendments, the Companys services that fall within the scope of Topic 606 are presented within non-interest income and are recognized as revenue as the Company satisfies its obligation to the customer. All of the Companys revenue from contracts with customers in the scope of Topic 606 is recognized within non-interest income which includes service charges on deposit accounts and the sale of foreclosed assets. A description of the Companys revenue streams accounted for under Topic 606 follows: Service Charges on Deposit Accounts : Service charges on deposit accounts relate to fees generated from a variety of deposit products and services rendered to customers. Charges include, but are not limited to, overdraft fees, non-sufficient fund fees, dormant fees, and monthly service charges. Such fees are recognized concurrent with the event on a daily basis or on a monthly basis depending upon the customers cycle date. Gains (Losses) on Sales of Foreclosed Assets : The Company records a gain or loss from a sale of foreclosed assets when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. If the Company finances the sale of foreclosed asset to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether colle …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing