Marathon Bancorp, Inc. /MD/

Marathon Bancorp, Inc.

Overview and corporate structure

• Marathon Bancorp, Inc. is a Maryland corporation formed in December 2020 as the mid-tier holding company for Marathon Bank, a Wisconsin-chartered savings bank.
• Corporate events:
  • 2021: Marathon Bank reorganized into a mutual holding company structure; Marathon Bancorp issued 45% of its common stock to the public and 55% to Marathon MHC.
  • 2025: On April 21, 2025, Marathon Bancorp converted from a mutual holding company to a stock holding company; Marathon MHC ceased to exist. The company issued 1,693,411 shares to the public (including 135,472 ESOP shares) at $10.00 per share; stock began trading on the Nasdaq Capital Market under the ticker MBBC.
  • Conversion proceeds: gross $16.9 million; offering expenses $1.7 million netted against proceeds. The company provided a term loan to the ESOP to finance its share purchase.
• Subsidiaries: Marathon Bank is the sole bank subsidiary. Marathon Property Holdings, LLC and 520 N 28th Avenue, LLC hold bank properties or other real estate owned.

Business focus and primary activities

• Core activities: deposit gathering and loan production/investment activities.
• Loan portfolio focus:
  • Commercial real estate (CRE) and multifamily real estate loans
  • One- to four-family residential real estate loans
  • Smaller holdings of commercial and industrial (C&I) loans, construction loans, and consumer loans
  • Real estate loans are often fixed-rate with balloon structures or adjustable-rate features. Conforming fixed-rate residential loans are typically sold into the secondary market (Fannie Mae/Freddie Mac or the Mortgage Partnership Finance program) with servicing retained; jumbo loans are retained in the portfolio.
• Investment portfolio: U.S. government and agency securities, municipal securities, corporate debt securities, mortgage-backed securities, and holdings in Federal Home Loan Bank (FHLB) of Chicago stock.
• Funding and liquidity: deposit-based funding with a mix of core (non-brokered) and brokered deposits; FHLB and other borrowing facilities used as needed.
• Strategy: community-focused relationship banking with growth initiatives in Southeastern Wisconsin (including Milwaukee) alongside the traditional Wausau market.

Market footprint and facilities

• Primary market: Wausau, Wisconsin metro area, with growth in Southeastern Wisconsin (primarily Milwaukee and surrounding counties).
• Branch network (as of 6/30/2026):
  • Main office: 500 Scott Street, Wausau, WI 54403 (owned)
  • Branches: 1133 E Grand Avenue, Rothschild, WI (leased); 307 Third Street, Mosinee, WI (owned); 11315 N. Cedarburg Rd, Mequon, WI (leased); 19105 W. Capitol Dr., Brookfield, WI (owned)
  • Additional: land in Weston, WI (owned); New Holstein property not in service as of 6/30/2026
• Net book value of properties (as of 6/30/2026, excluding right-to-use assets): approximately $3.6 million (main office and five additional properties).

Employees

• Full-time equivalent employees: 31 (as of 6/30/2026).
• No collective bargaining representation; ongoing staff development and banking education programs in place.

Key financial metrics (quarter ended 6/30/2026)

• Consolidated assets: $261.0 million
• Total deposits: $189.8 million
• Stockholders’ equity: $48.0 million
• Core deposits: $114.9 million (60.1% of total deposits); brokered deposits: $14.0 million
• Loan portfolio (total loans: $219.256 million)
  • One- to four-family residential real estate: $63.540 million (29.0%)
  • Multifamily real estate: $53.939 million (24.6%)
  • Commercial real estate: $95.912 million (43.7%)
  • Construction: $0.137 million (0.1%)
  • Commercial and industrial: $2.749 million (1.3%)
  • Consumer: $2.979 million (1.3%)

Asset quality and credit reserve metrics

• Delinquent real estate balances: $270k (30–59 days); $0 (60–89 days); $66k (90+ days)
• Non-performing assets (NPA): $1.062 million (includes non-accrual loans and foreclosed assets)
  • Non-accrual loans: $66k (one- to four-family); other loan categories $0
  • Foreclosed assets (REO): $996k
• Non-performing loans to total loans: 0.03%
• NPAs to total assets: 0.41% (0.45% in 2025)

Allowance for credit losses (ACL)

• ACL on loans: $1.746 million (as of 6/30/2026)
• ACL as a percent of total loans: 0.80%
• ACL to non-performing loans: 2,645.45%
• Provision for credit losses: $34k (2026); $(94k) (2025)
• Net charge-offs: $0 (2026 and 2025); recoveries: $4k (2026) and $5k (2025)

Investments, liquidity and borrowing capacity

• Securities portfolio composition:
  • Corporate debt securities: $3.0 million (68.0% of securities portfolio)
  • Municipal securities: $380k (8.7%)
  • Mortgage-backed securities: $1.0 million (23.3%)
  • FHLB of Chicago stock: $1.5 million (carried at cost)
• Borrowings and liquidity:
  • FHLB advances: $20.0 million (as of 6/30/2026)
  • Additional capacity: up to $87.0 million with FHLB; $19.6 million available from the Federal Reserve Bank; unsecured Federal Funds line of $5.0 million

Regulatory capital and deposit insurance

• Marathon Bank is considered “well capitalized” for regulatory purposes (as of 6/30/2026).
• Wisconsin net worth ratio: 15.45% (6/30/2026) and 15.86% (6/30/2025).
• The company has elected the community bank leverage ratio framework.
• FDIC deposit insurance coverage up to $250,000 per depositor; uninsured deposits totaled $77.3 million (as of 6/30/2026), including $10.0 million in uninsured certificates of deposit.

Tax and operating considerations

• The group files a consolidated federal tax return.
• Wisconsin net operating loss (NOL) carryforwards: $13.4 million; valuation allowance of $1.0 million recognized as of 6/30/2026.
• Federal tax framework includes NOLs and capital loss carryforwards as noted.

Lending and credit risk management

• Lending emphasis: commercial real estate and multifamily lending as primary growth targets; one- to four-family residential lending remains significant.
• Jumbo loans are retained in the portfolio; average jumbo loan size about $1.7 million (as of 6/30/2026).
• Underwriting focuses on cash flow, debt service coverage, collateral value, borrower experience, and guarantor support.
• Risk controls: regular review of delinquencies and nonperforming loans, appraisal reviews, environmental due diligence (including Phase I assessments where applicable), loan-to-value limits, and concentration management.

Recent and notable items

• MBBC trades on the Nasdaq Capital Market under MBBC.
• 2025 conversion raised gross proceeds of $16.9 million; net of offering costs, $15.2 million.
• ESOP-related financing: new loan of $2.1 million combined with a preexisting ESOP loan to support the ESOP share purchase.
• Branch expansion: opened a Brookfield, WI branch and expanded into Southeastern Wisconsin; New Holstein branch planned for Q4 2026.
• Information security: maintains an information security program with third-party IT services and vendor risk management.
• Regulatory compliance: subject to comprehensive banking regulation and annual examinations; compliant with the Community Reinvestment Act.

Summary

Marathon Bancorp, Inc. is the holding company for Marathon Bank, a Wisconsin-chartered savings bank focused on growing CRE and multifamily lending while maintaining a substantial portfolio of one- to four-family residential loans and selected C&I and consumer loans. The company funds operations through a mix of core and brokered deposits, uses FHLB and other facilities for liquidity, and maintains a diversified investment portfolio. As of 6/30/2026, consolidated assets were $261.0 million, deposits were $189.8 million, stockholders’ equity was $48.0 million, and the company employed 31 full-time equivalents. Branch operations include the main office in Wausau and active branches in Rothschild, Mosinee, Mequon, and Brookfield, with additional property holdings and planned expansion.